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HomeMy WebLinkAboutMinutes 2018-05-22 @12:00MINUTES SPECIAL MEETING s» OF THE CAI ENVIRONMENTAL STANDING C9LIF COMMITTEE OF THE CITY OF SOUTH SAN FRANCISCO P.O. Box 711 (City Hall, 400 Grand Avenue) South San Francisco, California 94083 Meeting will be held at: CITY MANAGER CONFERENCE ROOM 400 GRAND AVENUE SOUTH SAN FRANCISCO, CA TUESDAY, MAY 22, 2018 12:00 P.M. Call to Order. TIME: 12:00 p.m. Roll Call. PRESENT: Councilmembers Addiego and Gupta. ABSENT: Public Comments. None. Matters for Consideration None. 1. Motion to approve the Minutes for the meeting of May 30, 2017 MOTION Councilmember Addiego moved and Councilmember Gupta seconded a motion to approve the minutes. The question was called and the motion carried unanimously. 2. Report regarding status of the Energy Efficiency Plan project prepared by OpTerra ( Engie). (Marian Lee, Assistant City Manager and Justin Lovell, Public Works Administrator) Assistant City Manager Lee presented the staff report explaining the work with Engie on the Energy Efficiency Plan. She discussed the proposed $3.7 million program, resulting in $170,000 in annual savings. Councilmember Addiego asked appropriate financing terms. Assistant City Manager Lee stated a solar farm would have reduced the number of years making sense for payback. Emily Douglas, Engie Services, clarified the 17 -year financing, with positive cash flow within the term of the financing. In response to Councilmember Addiego, Ms. Douglas stated equipment generally lasted 25 to 30 years. Assistant City Manager Lee stated the concept had merit but locations had red flags. She explained staff's recommendation to conclude the planning effort with Engie. She discussed the Engie contract and explained the recommendation to issue an RFP following the City's bond rating. Councilmember Addiego stated the only City debt was for the Water Quality Treatment Plan. Councilmember Gupta disclosed that he spoke with Ms. Douglas. He indicated support for efforts towards energy efficiency. He discussed his confusion with the role of Engie, cost benefit ratios, unimaginative, proposed LED and solar project, and diversity between one solar production versus another solar production. He asked what information was obtained from the first phase. He requested information on conservation in terms of daily routines. He asked about staffs recommendation to issue an RFP. He discussed the initial RFP where 12 of the 13 responders dropped out leaving Engie as the only option. Councilmember Addiego asked if the RFP would be based on a particular project on the list. Assistant City Manager Lee discussed the need scope out the RFP, including requiring transparency. Councilmember Gupta discussed potential funding sources and suggested the consultant explore options. Councilmember Addiego discussed the Miller Avenue Garage allowing for solar components. Councilmember Gupta anticipated other agencies would follow the City's lead and want to work with the City. Ms. Douglas explained the development agreement, which contemplated development and implementation. She discussed the proposal based on economics. In response to Councilmember Gupta, Ms. Douglas stated they had reviewed energy saving models, financing, and the ESCO model. Public Works Administrator Lovell stated there were challenges with implementing the proposed project. Councilmember Gupta agreed that the timing was not right for the project. Assistant City Manager Lee commented on the overall long term goal and need to link the project to the 2014 Climate Action Plan. SPECIAL ENVIRONMENTAL STANDING COMMITTEE MEETING MAY 22, 2018 MINUTES PAGE 2 Councilmember Gupta discussed programs under PG &E and looked forward to discussing additional opportunities. Councilmember Addiego indicated acceptance of the staff recommendation. Councilmember Gupta requested a copy of the Engie report. He discussed CCAG programs and stated the City was keeping some of the incentives. Adjournment. Being no further business the meeting was adjourned at 12:40 p.m. Submitted Ga el Ro ez, Deputy City Clerk City of South San Francisco Approved by: Councilmember City of South San Francisco SPECIAL ENVIRONMENTAL STANDING COMMITTEE MEETING MAY 22, 2018 MINUTES PAGE 2