REPORT TO THE CITY COUNCIL
FROM: SCOTT L. MOZIER, PE, Director
Public Works Department
BY: WILLIAM C. HERR, Assistant Director
Public Works Department, Construction Management Division
ANN D. KLOOSE, Sustainability Division Manager
Public Works Department, Sustainability Division
SUBJECT
Title
***RESOLUTION - Adopting the 34th amendment to the Annual Appropriations Resolution (AAR) No. 2022-154 appropriating $1,761,500 for the Parks and Public Safety Energy Efficiency Projects (Citywide) (Requires 5 Affirmative Votes)(Subject to Mayor’s Veto)
Body
RECOMMENDATION
Staff recommends Council approve the 34th amendment to the Annual Appropriations Resolution (AAR) No. 2022-154 appropriating $1,761,500 in PG&E On-Bill Financing (OBF) 0% interest funding for completion of the Citywide Parks and Public Safety Energy Efficiency Projects.
EXECUTIVE SUMMARY
On February 10, 2022, the Council awarded a Contract in the amount of $17,947,480.00 to Alliance Building Solutions to perform energy efficiency upgrades at 73 project sites throughout the City and authorized staff to execute the project financing. The project, which uniquely pays for itself by utilizing energy bill savings, was partially funded with energy loan financing of $16,247,480.00 at a 2.62% interest rate, with the $1,761,500 balance of the project being funded with revenue from the PG&E 0% interest On-Bill Financing (OBF) program. The estimated interest savings by utilizing the 0% interest was $367,000. This amendment to the AAR is consistent with the original project financing as adopted by the Council, and Council action is now required in order to appropriate the OBF revenue for the project as previously planned.
BACKGROUND
On February 10, 2022, the Council awarded a Contract for the amount of $17,947,480.00 to Alliance Building Solutions to perform energy efficiency upgrades at 73 project sites throughout the City to include interior and exterior LED lighting upgrades, HVAC upgrades and replacements, system controls and monitoring, and transformer upgrades. The Council also authorized staff to execute the project financing. The project, which uniquely pays for itself by utilizing energy bill savings, was funded in part with energy loan financing of $16,247,480.00 which was financed at 2.62%. The balance of the construction portion of the project is funded by using revenue obtained using the PG&E 0% interest using the On-Bill Financing (OBF) program which provided an additional $1,761,537.58 in revenue. The estimated interest savings by utilizing the 0% interest was $367,000.
Further, this resolution and program funding of $1,761,500 is necessary to finish the Citywide projects which are substantially complete and well ahead of the contract completion schedule which commences on February 5, 2024.
ENVIRONMENTAL FINDINGS
This approval is not a project for the purposes of CEQA Guidelines Section 15378.
LOCAL PREFERENCE
Local preference was not implemented as this is an appropriations approval only.
FISCAL IMPACT
This revenue being received represents the City’s committed share of the previously awarded contract which does not negatively impact the General Fund.
Attachment(s):
34th Amendment to the AAR 2022-154