HomeMy WebLinkAboutItem 6d. Authorize PG&E Agreement, Adopt Government Code 4217 Findings, and Issue Work Order to advance Municipal Facility Electrification Item 6d
Department: Administration
Cost Center: 9501
For Agenda of: 3/4/2025
Placement: Public Hearing
Estimated Time: 15 minutes
FROM: Greg Hermann, Deputy City Manager
Prepared By: Lucia Pohlman, Sustainability and Natural Resources Analyst
SUBJECT: AUTHORIZE PG&E AGREEMENT, ADOPT GOVERNMENT CODE 4217
FINDINGS, AND ISSUE WORK ORDER TO ADVANCE MUNICIPAL
FACILITY ENERGY SYSTEM RETROFITS.
RECOMMENDATION
1. Adopt a Draft Resolution entitled, “A Resolution of the City Council of the City of San
Luis Obispo, California, making findings on energy savings and authorizing a Services
Agreement with the Pacific Gas and Electric Company pursuant to California
Government Code Section 4217” and thereby approve the use of a design-build
procurement method consistent with Government Code Section 4217; and
2. Authorize the City Manager to execute a Services Agreement with Pacific Gas and
Electric Company (PG&E) to provide turnkey services for energy conservation
assessments of City facilities and installation of energy conservation measures; and
3. Authorize the City Manager to execute a Work Order for an Investment Grade Audit
for the Municipal Facility Energy System Retrofit Project.
POLICY CONTEXT
The information presented in this report is grounded in standing policy, including:
Land Use Element of the General Plan:
o Policy 9.4 (Climate Action Plan) - The City shall maintain and implement its
Climate Action Plan to reduce community and municipal GHG emissions
consistent with State laws and objectives.
Conservation and Open Space Element of the General Plan:
o Policy 2.2.1 (Atmospheric Change) - City actions shall seek to minimize
undesirable climate changes and deterioration of the atmosphere’s
protective functions that result from the release of carbon dioxide and other
substances.
o Policy 2.2.5 (Model City) – The City will be a model of pollution control
efforts. It will manage its own operations to be as pollution free as possible.
The City will work with other agencies and organizations to help educate
citizens in ways to prevent air pollution.
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Item 6d
Resolution 11159 (2020 Series) adopted the Climate Action Plan for Community
Recovery and the goal of reaching carbon neutral municipal operations by 2030.
Resolution 11263 (2021 Series) adopted the Lead by Example Plan, which
includes a target of eliminating fossil fuels from City facilities and buildings by 2030
and a related 2023-25 Financial Plan task: “Energy 2.1 Initiate implementation of
Energy Master Plan, continue priority retrofits, and initiate hard -to-reach retrofits
to advance decarbonization and energy management across buildings and
facilities.”
Resolution 11381 (2022 Series) adopted the Community Climate Action Plan
2023-27 Work Program and reaffirmed the City’s municipal climate action goals
and created a work program that directs staff to, “Implement the 2023-25 actions
in the Lead by Example municipal carbon neutrality plan .”
Resolution 11541 (2025 Series) adopted the Lead by Example 2025 -29 Work
Program, reaffirmed the City’s 2030 carbon neutrality goal and directs staff to,
“Complete priority electrification projects at the (1) Swim Center, (2) Ludwick
Community Center, (3) Corporation Yard, and (4) City Hall, alongside the
remaining energy saving lighting efficiency retrofits across all facilities through the
PG&E Sustainable Solutions Turnkey (SST) Program.”
In addition, this project supports the 2023-25 Major City Goal (MCG) of Climate Action,
Open Space, and Sustainable Transportation by implementing the Lead by Example
Municipal Climate Action Plan.
REPORT-IN-BRIEF
In support of the City of San Luis Obispo’s long history of commitment to environmental
stewardship and conservation, and in direct support of the City’s Lead by Example
municipal climate action goals, the City is pursuing a streamlined implementation
approach for priority facility energy retrofits. As of 2022, the energy used in City buildings
and facilities represented 51% of total municipal greenhouse gas emissions . As Central
Cost Community Energy (3CE) is on track to providing carbon-free electricity by 2030,
Lead by Example directs staff to focus narrowly on eliminating fossil fuel use in City
buildings. The proposed scope of work includes energy efficiency and electrification
projects in the buildings and facilities that consume over three quarters of the City’s
natural gas use from General Fund facilities: the Swim Center, City Hall, and the
Corporation Yard. By participating in PG&E’s Sustainable Solutions Turnkey (SST)
program, the City can advance these priority LBE building and energy projects efficiently
and cost effectively.
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Item 6d
To legally use this alternative procurement approach – which enables the City to contract
directly with PG&E to manage vendor selection, completion of an investment grade audit,
and project implementation – the City Council is required to adopt formal findings at a
regularly scheduled public hearing to affirm the applicability of Government Code Section
42171 to the proposed project. A draft Resolution is provided as Attachment A to this
report and provides the necessary findings on the cost savings of the proposed project.
Pending Council’s findings, the next step in participating in the SST Program is to enter
into the Services Agreement with PG&E (Attachment B) and issue a Work Order
(Attachment C) to complete an Investment Grade Audit, subject to such changes,
insertions or omissions as the City Manager and City Attorney reasonably deems
necessary. As is typical in the SST Program, in advance of this public hearing, PG&E has
already (1) conducted an initial analysis of the proposed project, (2) managed a RFP
process with their pool of qualified Energy Service Companies (ESCOs) for a scope of
work including the Investment Grade Audit and subsequent project implementation (if
applicable), and (3) selected a vendor best suited to perform the services desired by the
City. The selected vendor, Willdan, has experience reducing emissions from municipal
operations, including public swim centers, as well as a track record of successful projects
with the City (see Attachment D for Willdan’s proposal).
If City Council determines that participating in the SST Program is in the best interest to
the City, there is $75,000 budgeted in FY2024-25 to complete the Investment Grade
Audit. After the completion of the Investment Grade Audit, the City can choose to accept
the audit and begin implementation or pause the project to align implementation with
available project funding. Subsequent project implementation is included in the CIP and
is slated for funding in out years (2025-29), subject to future Council Financial Plan and
Capital Improvement Plan approvals.
DISCUSSION
Background
City of San Luis Obispo Lead by Example Plan
In August 2020, City Council adopted the Climate Action Plan (CAP) for Community
Recovery via Resolution R-11159 (2020 Series). During plan development, the City
Council, community members, and key stakeholders shared that the City of San Luis
Obispo should play a highly visible climate action leadership role in its own municipal
operations. Of the six pillars of thematic focus in the community CAP, the first pillar is
‘Lead by Example’, which focuses on addressing emissions from municipal oper ations.
When City Council adopted the goal of communitywide carbon neutrality by 2035 as part
of the CAP, Council also adopted a goal of carbon neutral municipal operations by 2030.
1 The Energy Conservation Contracts statutes are found in Government Code § 4217.10-4217.19; for ease
of reference, this statutory framework will be referred to as “Government Code Section 4217.”
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Item 6d
In July 2021, Council adopted Lead by Example: A Plan for Carbon Neutral Municipal
Operations2 (referred to as “2021 LBE”), which identified goals, objectives, and actions
for achieving the City’s 2030 municipal operations carbon neutrality goal. On February 4,
2025, the Plan was updated to include a 2025-29 work program. The adopted Lead by
Example 2025 Work Program (referred to as “2025 LBE”) reaffirmed the carbon neutrality
goal and proposed a detailed set of implementation actions for the 2025-27 and 2027-29
Financial Plans.
Emissions from City Buildings and Facilities
Lead by Example addresses municipal greenhouse gas emissions from four sectors,
including Building and Facility Energy. Emissions from the use of electricity and natural
gas to power buildings, facilities, and equipment is the largest source of inventoried
municipal climate emissions. This sector comprised 42% of the total amount of
inventoried emissions from City operations in 2019, and 51% of total municipal emissions
in 2022.
The Buildings and Facility Energy sector includes a specific goal to eliminate fossil fuels
from City buildings and facilities by 2030. In support of this goal, the City completed Lead
by Example Task Energy 1.1, which directed staff to develop a Citywide approach to
decarbonize buildings and facilities. The resulting Carbon Neutral City Facilities Plan3,
found that a small number of buildings and mechanical equipment were responsible for
the majority of emissions.
While the City’s approach to Building and Facility Energy includes energy efficien cy for
both fiscal and environmental reasons, the sector’s primary focus is on eliminating the
use of natural gas and other fossil fuels. In practice, this requires swapping out the City’s
natural gas mechanical equipment and appliances with efficient electric alternatives. As
3CE is currently projecting that it will provide its customers with renewable and carbon-
free electricity by 2030, in the near term the City’s existing and forthcoming electric
equipment will be able to operate without producing climate pollution.
Priority Lead by Example Building and Facility Energy Projects
As documented in the Carbon Neutral City Facilities Plan, the SLO Swim Center is
responsible for 68% of the City’s natural gas use from General Fund facilities, nearly all
of which is used to heat the pool. The Carbon Neutral City Facilities Plan also analyzes
the Corporation Yard, City Hall, and the Ludwick Community Center, which collectively
with the Swim Center consume 83% of the City’s natural gas from General Fund facilities.
The 2025 LBE directs staff to focus on these facilities in the 2025 -27 Financial Plan, as
specified in action Energy 2.1, which states “Complete priority electrification projects at
the (1) Swim Center, (2) Ludwick Community Center, (3) Corporation Yard, and (4) City
Hall, alongside the remaining energy saving lighting efficiency retrofits across all facilities
through the PG&E Sustainable Solutions Turnkey (SST) Program.”
2 Link to the 2021 Lead by Example Plan: https://pub-
slocity.escribemeetings.com/filestream.ashx?DocumentId=630
3 Link to Carbon Neutral City Facilities Plan: https://pub-
slocity.escribemeetings.com/filestream.ashx?DocumentId=8438
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Item 6d
The Ludwick Community Center retrofits are planned to be executed under a standalone
facility rehabilitation project in the future, when sufficient resources permit. As the City is
currently in contract with a vendor to complete design work at Ludwick for a large
maintenance project addressing siding, roofing, HVAC, and solar, including Ludwick in
the proposed streamlined approach would be a duplicative effort. As such, Ludwick will
not be further discussed in this Council Agenda Report. Electrification projects at the three
remaining sites are the highest priority Lead by Example Building and Facility Energy
projects (hereto referred to as the “Priority LBE Energy Projects”).
Through these projects, the existing natural gas equipment at these four facilities would
be replaced with energy-saving electric heat pumps, alongside related electrical,
plumbing, and efficiency upgrades. At the Swim Center, in addition to adding heat pumps,
there is a potential for a solar thermal system to handle the majority of the pool’s heating
needs while retaining the existing natural gas boilers for cold days. At the Corporation
Yard, the timing of the proposed heating, ventilation, and air conditioning (HVAC) project
is aligned with the replacement cycle of the existing natural gas equipment, which is near
the end of its useful life.
Proposed Streamlined Procurement Method: Sustainable Solutions Turnkey Program
To accomplish the Priority LBE Energy Projects efficiently and cost-effectively, staff
recommend using a procurement and delivery approach that minimizes staff burden and
enables accelerated implementation. Staff have identified PG&E’s Sustainable Solutions
Turnkey (SST) program as the preferred approach. SST is a turn-key design,
construction, and financing program applicable to the Priority LBE Energy Projects.
As allowed under Government Code Section 4217.10 et seq., (the “Energy Conservation
Statutes,” see next section for more detail) participating in the SST program would enable
the City to contract directly with PG&E, who would manage procurement and contracting
and serve as the City’s owner’s representative throughout a design build process with a
selected Energy Services Company (ESCO). By using the SST procurement and project
delivery approach, the City will be able to keep on track to complete the Priority LBE
Energy Projects and make significant progress towards Council’s adopted goal of
reaching municipal carbon neutrality by 2030.
The SST program is divided into six phases described in Figure 1. The first three phases
of the Program are provided at no cost to the City. After each phase, staff will determine
if the Program meets the City’s objectives, and a decision will be made on whether to
continue to the next phase as discussed further below.
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Item 6d
Figure 1. Sustainable Solutions Turnkey Program Outline
The City has over two decades of successful experience participating in the SST program.
The City’s 2012 Water Resource Recovery Facility (WRRF) project was PG&E’s
inaugural implementation of the SST program at the municipal level. The City used the
program again in 2018 to successfully implement another efficiency project at the City’s
Water Treatment Plant. From the successful foundation established with the City of San
Luis Obispo, the SST program continues to offer turn-key energy projects for cities and
Counties throughout their territory. Notable other SST participant cities include San
Rafael, Santa Maria, Orange Cove and the counties of San Mateo, Santa Cruz, and San
Luis Obispo.
Phase 1
Feasibility
Discussion &
Project Initiation
•PG&E’s SST team meets with customer to determine energy and facility
needs, challenges, goals; conducts site-walk; reviews relevant energy data.
•PG&E presents high-level findings and identifies likely opportunities
(measures to reduce energy use/spend, add renewables, build resiliency,
etc.) and, if appropriate, proposes an SST path forward.
Phase 2
PG&E Runs RFP
•PG&E will solicit IGA (Investment Grade Audit) proposals from its ESCO
pool and work with the customer to select winning vendor (at no charge to
the customer and no contract needed for PG&E to run this RFP process)
Phase 3
Contracting and
Investment Grade
Audit Work Order
•Customer executes Services Agreement that sets general T&Cs between
the customer and PG&E.
•The customer issues the IGA Work Order directing PG&E to do the IGA. IGA
Work Order includes the schedule, scope and fee, which can be paid during
installation from energy savings.
Phase 4
PG&E Completes
IGA
•The IGA is a detailed energy audit of the customer’s facility/s that reflects the
“scope of work” to be installed via the installation work order.
Phase 5
Funding and
Financing
•PG&E utilizes many financing tools, including: OBF (0% rate for measures
that qualify); CEC financing (1%); private finance (at competitive rates); and
all incentives and rebates that are available.
Phase 6
Project
Implementation
and Evaluation
•Customer issues the installation Work Order directing PG&E to install the
measures described in the final IGA. The Work Order contains a project
schedule, the fixed-fee installation price, and attaches the IGA Report as an
exhibit detailing the scope of work.
•PG&E manages installation of all measures. PG&E's Project Manager chairs
weekly meetings and is regularly on-site with contractor to ensure safe and
timely project completion. PG&E also provides many performance assurance
and O&M services, as needed by the customer.
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Item 6d
Initial Phases of SST Program for Priority LBE Energy Projects
In 2024, City staff from Administration and IT and Public Works met with PG&E
representatives from the SST program to discuss the feasibility of partnering on the
Priority LBE Energy Projects and conducted a site walk to confirm applicability. After
determining that the City and these projects were a good fit, staff initiated the second
phase of the SST program.
At zero cost to the City and with no contractual obligations, PG&E ran a competitive RFP
process with their network of ESCOs for the following scope of work determined by the
City:
a) Significantly reduce natural gas use and related emissions at the Swim Center
using relevant low-carbon heating technology, which could include a solar thermal
system and/or heat pumps.
b) Replace natural gas boiler at City Hall with heat pump/s.
c) Replace gas-fired furnaces and air conditioning units at the Corporation Yard and
the Ludwick Center4 with heat pumps.
d) Install battery energy storage systems or other distributed energy resources that
can shave peak loads and lower utility costs at the Swim Center, City Hall,
Corporation Yard and Ludwick Center. Note: this measure was added to the
Priority LBE Energy Projects list because it has the potential to save th e City
money. The City will require the chosen vendor to thoroughly address safety
concerns for any proposed battery storage systems.
e) Install limited lighting upgrades at the Police Station, City-County Library and the
Parks and Recreation Offices. Note: this measure was added to the Priority LBE
Energy Projects list because it has the potential to save the City money.
Three firms submitted proposals for this scope of work: Willdan, Southland, and Centrica.
Willdan was selected as the preferred vendor by the City and PG&E because of Willdan’s
recent experience decarbonizing a public pool facility similar to the SLO Swim Center and
their track record of successful performance with the City of San Luis Obispo on other
energy projects. Willdan’s proposal (Attachment D) provides additional detail about their
proposed project approach, equipment type, estimated utility and carbon emissions
savings, and a turnkey cost estimate. During their interview with PG&E, Willdan identified
several project approaches for reducing climate emissions from the Swim Center, which
would present the City with a range of possible implementation costs, greenhouse gas
reductions, and utility savings. It is important to note that the turnkey cost estimate for the
Swim Center provided in Willdan’s proposal reflects the largest possible scope of work at
the Swim Center. Through the Investment Grade Audit (see below), staff will pare down
the scope to optimize for emissions reductions and operational cost based on the amount
of resources available to complete the project.
4 As previously noted, the Ludwick Community Center retrofits are planned to be executed under a
standalone facility rehabilitation project and will not be pursued through the SST Program.
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Item 6d
With Phase 2 complete, the City’s participation in the next two phases of the SST program
(see description of Phase 3 and 4 in Figure 1) requires Council approval to execute a
Services Agreement with PG&E (see Attachment B) and to issue a Work Order for the
Investment Grade Audit (see Attachment C). This alternative procurement approach
additionally requires findings to be made by the City Council related to the applicability of
Government Code Section 4217 to the proposed project.
Applicability of the Energy Conservation Statutes
The Energy Conservation Statutes authorize public agencies to use alternative
procurement and financing approaches for specified projects, including design build and
energy services contracts, to save energy and money. In order to avail itself of this
alternative approach, as directed by Section 4217.12, a public agency’s governing body
is required to:
1) Determine that the project and procurement approach is in the best interest of the
public agency.
2) Make formal findings that the anticipated cost to the public agency for thermal or
electrical energy or conservation services provided by the energy conservation
facility under the contract will be less than the anticipated marginal cost to the
public agency of thermal, electrical, or other energy that would have been
consumed by the public agency in the absence of those purchases.
3) If the project includes any ground leases, that the difference, if any, between the
fair rental value for the real property subject to the facility ground lease and the
agreed rent, is anticipated to be offset by below-market energy purchases or other
benefits provided under the energy service contract.
4) To make these determinations at a regularly scheduled public hearing, public
notice of which is given at least two weeks in advance.
As discussed in the previous section, the City defined the scope of the RFP, issued by
PG&E, to significantly reduce fossil fuel consumption in the City’s general fund facilities
that use the most natural gas, including Swim Center, City Hall, Corporation Yard, and
Ludwick Community Center, alongside load shifting battery energy storage systems and
lighting retrofits to drive additional cost savings. The proposal provided by Willdan
included several additional measures beyond the original RFP scope. As a whole, these
scope decisions contributed to a simple payback that would not generate cost savings
within the expected lifespan of the proposed projects. As participation in the SST Program
requires projected cost savings as set forth by Government Code Section 4217, the City
requested an adjustment in scope in order to arrive at a bundled project with a shorter
simple payback period than the lifespan of the to-be-installed equipment.
This updated scope (as reflected in Exhibit A of the draft Resolution) focuses on a solar
thermal system at the Swim Center, replacing natural gas equipment with heat pump s at
City Hall and the Corporation Yard, as well as additional cost savings measures including
lighting upgrades, on-site chlorine generation, energy storage systems, and additional
electrical upgrades. Wildan estimates that this updated scope could generate $202,011
in utility savings and $119,896 in maintenance savings, and with the addition of various
incentives could generate a simple payback of approximately 18.1 years. This simple
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Item 6d
payback is generally shorter than the expected lifespan of the proposed projects, and
thus would generate cost savings for the City. These savings can be realized in part
because:
- Solar thermal systems significantly reduce utility costs for heating water
- Electric air source heat pumps are substantially more efficient than natural gas
boilers and packaged AC units
- Efficient LED lighting reliably generates utility savings
Willdan’s fiscal analysis of the updated scope of Priority LBE Energy Projects finds that
the cumulative cost of implementing and operating the projects is cheaper to the City
relative to the cost of the existing and/or equivalent natural gas equipment over the
lifespan of the proposed project. Accordingly, the updated scope of Priority LBE Projects
is eligible as an energy conservation facility under Government Code Section 4217.12.
To formally make such determinations, staff recommends adopting the draft Resolution
(Attachment A), which includes Willdan’s financial analysis as Exhibit A and reiterates the
findings above and states that the anticipated costs of implementing and operating the
Priority LBE Energy Projects will be less than the anticipated marginal cost of thermal,
electrical, or other energy that would have been consumed by the City in the absence of
those projects, and thus that the proposed SST project is consistent with California
Government Code Section 4217.12.
Next Steps
If approved by Council, the City will execute the Services Agreement with PG&E and
issue a Work Order for the Investment Grade Audit. As described in the draft Work Order
(Attachment C), the City would participate in project meetings, support site visits, and
review and provide comments on a 45% and 90% draft Investment Grade Audit Report.
PG&E plans to complete the 100% Investment Grade Audit Report within seven months
of issuance of the Work Order, and within 45 days of receiving this deliverable the City
can either: (1) pay PG&E $75,000 in one lump sump for the value of the Investment Grade
Audit, or (2) provide written notification to PG&E that the City intends to issue a Project
Implementation Work Order. Ownership and title to any deliverable produced pursuant to
the Work Order will be transferred to the City upon delivery, and as such will be available
to support future project implementation either within or independently from the SST
Program. If the Investment Grade Audit identifies a viable project pending available
resources, staff will return to City Council for consideration of issuing a second Work
Order for Project Implementation. Any such recommendation will include a detailed scope
of work for implementation, cost benefit analysis, design information, applicable rebates
and incentives, turn-key construction costs, and environmental review considerations.
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Item 6d
Previous Council or Advisory Body Action
August 2020 – Council adopted Resolution 11159 (2020 Series), which approved
the Climate Action Plan for Community Recovery with the goal of community
carbon neutrality by 2035 and a sub-goal of carbon neutral municipal operations
by 2030.
June 2021 – Council adopted the 2021-23 Financial Plan with the Climate Action
MCG that included funding to rapidly electrify the City’s buildings and facilities.
July 2021 – Council adopted Resolution 11263 (2021 Series), which approved the
Lead by Example Plan with a goal of carbon neutral municipal operations by 2030
by eliminating fossil fuel use in buildings and facilities.
December 2022 – Council adopted Resolution 11381 (2022 Series), which
reaffirmed the City’s climate action goals and directs staff to, “Implement the 2023-
25 actions in the Lead by Example municipal carbon neutrality plan .”
February 2025 – Council adopted Resolution (2025 Series), which adopted the
Lead by Example 2025-29 Work Program, and directs staff to “Complete priority
electrification projects at the (1) Swim Center, (2) Ludwick Community Center, (3)
Corporation Yard, and (4) City Hall, alongside the remaining energy saving lighting
efficiency retrofits across all facilities through the PG&E Sustainable Solutions
Turnkey (SST) Program.”
Public Engagement
The project appears in the 2023-25 Financial Plan, which was adopted on June 1, 2023,
after an extensive public engagement effort.
The Lead by Example 2025-29 Work Program also refers to the Priority LBE Energy
Projects and the Sustainable Solutions Turnkey Program , and was adopted on February
4, 2025, after conducting public engagement through Open City Hall, Good Morning SLO,
and digital communications channels.
CONCURRENCE
This report was completed in collaboration between the Administration and Public Works
departments.
ENVIRONMENTAL REVIEW
The California Environmental Quality Act (CEQA) does not apply to t he execution of the
Services Agreement with PG&E or adoption of the draft Resolution because this action
does not constitute a “Project” under CEQA Guidelines Sec. 15378. Participation in the
Investment Grade Audit is exempt from environmental review as a Statutory Exemption
under Section 15262, Feasibility and Planning Studies. Projects identified in the
Investment Grade Audit will need future authorization and environmental review prior to
actual project funding and construction.
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Item 6d
FISCAL IMPACT
Budgeted: Yes Budget Year: 2024-25
Funding Identified: Yes
Fiscal Analysis:
Funding
Sources
Total Budget
Available
Current
Funding
Request
Remaining
Balance
Annual
Ongoing
Cost
General Fund $75,000 $75,000 $0 $0
State
Federal
Fees
Other:
Total $75,000 $75,000 $0 $0
The City has $75,000 on-hand at present to complete the Investment Grade Audit. After
the completion of the Investment Grade Audit, the City can choose to accept the audit
and begin implementation, or pause the project to align implementation with available
project funding. Funding for project implementation is included in the CIP and is slated
for funding in out years (2025-29), subject to future Council Financial Plan and Capital
Improvement Plan approvals.
Upon completion of the Investment Grade Audit, the City will work with Willdan and PG&E
to develop a funding and potential financing plan based on available City resources. The
SST program enables the public agency to allocate the money saved from reduced
energy consumption and operational maintenance costs towards operating capital or any
potential financing arrangement. Because of the relative costs between natural gas and
electricity utility rates, the City is likely to only realize marginal cost savings from the
Priority LBE Energy Projects despite significant increases in energy efficiency.
Accordingly, it is likely that the City will need to pay for the project using external
incentives and grants, existing and future allocations from the General Fund, and/or
traditional financing mechanisms.
In regard to external grant funding, the City is in contract to receive $75,000 in funding
through the U.S. Department of Energy’s Energy Efficiency and Conservation Block Grant
Program (EECBG), with plans to allocate those funds to the Priority LBE Energy Projects.
Given the current uncertainty about federal funds, especially for programs that focus on
reducing greenhouse gas emissions, staff are not including these funds in this report’s
fiscal analysis but will update Council if said funds become available.
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Item 6d
ALTERNATIVES
1. Council could decide not to approve a streamlined procurement approach to
implement the Priority Lead by Example Energy Projects. This action would cause
a delay in implementing the Priority LBE Energy Projects, which will impact the City’s
ability to make progress on its time bound 2030 carbon neutrality goal. A traditional
procurement process for these projects would require approximately 6 months to
prepare an RFP and complete the procurement process for the design phase of the
project, 8 to 12 months for the selected vendor to complete bid-ready design
documents, 6 months to prepare an RFB and complete the procurement process for
the construction phase of the project, and 18 to 36 months to complete the projects.
In total, this approach is estimated to add 18 to 24 months to the project timeline, and
may delay project implementation beyond Council’s 2030 carbon neutrality goal.
2. Council could decide not to approve participation in the SST Program and direct
staff to pursue an alternative streamlined approach to implement the Priority
Lead by Example Energy Projects. If the City were to pursue a California
Government Code 4217 consistent streamlined approach outside of the SST
Program, the City would run a new procurement process for services with an Energy
Services Company (ESCO). This would delay project implementation by
approximately 6 months. This approach could result in an uncertain bidding
environment, possibly risking a longer delay. This alternative would enable the City to
avoid the overhead costs of working with PG&E through the SST Program, but would
also preclude the benefits of PG&E’s technical expertise, project management, and
support acting as the City’s owner’s representative throughout the project.
3. Council could amend the proposed scope of work included within the Priority
Lead by Example Energy Projects. The proposed scope of work was developed by
expert external consultants and has been further refined by Public Works staff, PG&E,
and Willdan. Changes to the scope of work should be made in discussion with all
stakeholders—including staff, PG&E, and Willdan—to ensure that the amended scope
would achieve the necessary cost savings to enable participation in the SST Program
as defined by Government Code Section 4217.
ATTACHMENTS
A - Draft Resolution Adopting Findings on Energy Savings and Auth orizing a Services
Agreement with Pacific Gas and Electric
B - Draft Services Agreement with Pacific Gas and Electric
C - Draft Pacific Gas and Electric Work Order for Investment Grade Audit
D - Willdan Proposal for Priority Lead by Example Energy Projects
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R ______
RESOLUTION NO. _____ (2025 SERIES)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS
OBISPO, CALIFORNIA, MAKING FINDINGS ON ENERGY SAVINGS
AND AUTHORIZING A SERVICES AGREEMENT WITH PACIFIC GAS
AND ELECTRIC COMPANY PURSUANT TO CALIFORNIA
GOVERNMENT CODE SECTION 4217
WHEREAS, it is the policy of the State of California and the intent of the State
Legislature to promote all feasible means of energy conservation and all feasible uses of
alternative energy supply sources; and
WHEREAS, the City of San Luis Obispo (“City”) desires to reduce energy costs at
its facilities; and
WHEREAS, the City has adopted policy in the Community Climate Action Plan for
Community Recovery and the Lead by Example Municipal Climate Action Plan that
provides direction to increase energy efficiency and eliminate the use of fossil fuels in City
facilities, and has subsequently completed the Carbon Neutral City Facilities Plan to
identify the highest priority implementation actions; and
WHEREAS, on February 4, 2025, the City Council adopted the Lead by Example
Work Program, which directs staff to “Complete priority electrification projects at the (1)
Swim Center, (2) Ludwick Community Center, (3) Corporation Yard, and (4) City Hall,
alongside the remaining energy saving lighting efficiency retrofits across all facilities
through the PG&E Sustainable Solutions Turnkey (SST) Program”; and
WHEREAS, Pacific Gas and Electric Company Power (“PG&E”) has developed
the Sustainable Solutions Turnkey Program (SST) to provide a turnkey, comprehensive
approach towards designing, building, managing, commissioning, monitoring and
validating energy conservation measures analogous to the City’s priority Lead by
Example energy projects; and
WHEREAS, the State of California Government Code 4217 authorizes local
municipalities to enter into energy services and financing agreements outside of the
adopted procurement process, such agreements related to participation in the PG&E SST
Program, if the governing body finds that the project best serves the public agency and
can save the agency money; and
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WHEREAS, Government Code sections 4217.10 through 4217.18 specifically
authorizes the City Council to enter into one or more energy service contracts with any
person or entity without advertising for bids, pursuant to which that person or entity will
provide electrical or thermal energy or conservation services to the City, which may
comprise or include an energy conservation facility, if the anticipated cost to the City for
thermal or electrical energy or conservation services provided under the contract is less
than the anticipated marginal cost to the City of thermal, electrical, or other energy that
would have been consumed by the City in the absence of the energy service co ntract;
and
WHEREAS, the City proposes to enter into a Service Agreement and related
contract documents with PG&E, each in substantially the form presented at this meeting,
subject to such changes, insertions or omissions as the City Manager and City Attorney
reasonably deems necessary following the Council’s adoption of this Resolution; and
WHEREAS, pursuant to the execution of the aforementioned Service Agreement
PG&E would complete an Investment Grade Audit for the Priority Lead by Example
Energy Projects at the Swim Center, City Hall, and the Corporation Yard, as well as cost
savings measures related to lighting upgrades and battery storage energy systems at
various City facilities, hereinafter referred to as the “Priority LBE Energy Projects”; and
WHEREAS, PG&E and its subcontractor Willdan have provided the City with an
analysis showing the financial and other benefits of implementing the Priority LBE Energy
Projects, which analysis is attached hereto as Exhibit A and made part hereof by this
reference; and
WHEREAS, Exhibit A provides the anticipated costs of implementing and
operating Priority LBE Energy Projects over the lifetime of the proposed equipment and
upgrades, which is less than the, presented as evidence at the public hearing held the
date of this Resolution; and
WHEREAS, the analysis provided by PG&E in Exhibit A, along with other
information, analysis, and conclusions based on further due diligence by City staff,
demonstrates that the cost of the proposed contract for the energy and conservation
services is less than the anticipated marginal cost of thermal, electrical, or other energy
that would have been consumed by the City in the absence of those projec ts; and
WHEREAS, pursuant to Government Code 4217, these findings have been made
at a regularly scheduled public hearing of the City Council, for which two weeks’ prior
notice was provided to the public, and following all other agenda and notification
requirements.
NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis
Obispo as follows:
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SECTION 1. Recitals. The recitals set forth above are hereby adopted as the
findings of the City in adopting the policies herein.
SECTION 2. Best Interests of the City. The City Council finds that the terms of the
Service Agreement and Investment Grade Audit Work Order are in the best interests of
the City. The project scope addresses the Priority Lead by Example Energy Projects as
adopted by City Council in the 2025-29 Lead by Example Work Program. The project will
further the carbon neutrality goals of the City’s adopted Climate Action Plan for
Community Recovery, and the project is consistent with the Ge neral Plan as follows:
1. Land Use Element of the General Plan:
a. Policy 9.4 (Climate Action Plan) - The City shall maintain and
implement its Climate Action Plan to reduce community and
municipal GHG emissions consistent with State laws and objectives.
2. Conservation and Open Space Element of the General Plan:
a. Policy 2.2.1 (Atmospheric Change) - City actions shall seek to
minimize undesirable climate changes and deterioration of the
atmosphere’s protective functions that result from the release of
carbon dioxide and other substances.
b. Policy 2.2.5 (Model City) – The City will be a model of pollution
control efforts. It will manage its own operations to be as pollution
free as possible. The City will work with other agencies and
organizations to help educate citizens in ways to prevent air pollution
SECTION 3. Findings. In accordance with Government Code section 4217.12, and
based on data and analysis provided by Exhibit A, attached hereto and incorporated by
reference, the Council finds that the anticipated costs of implementing and operating the
Priority LBE Energy Projects will be less than the anticipated marginal cost to the City of
thermal, electrical, or other energy that would have been consumed by the City in the
absence of those projects. Based on these findings, the City has determined to forgo
standard procurement processes in favor of the alternative procurement process for
“energy services contracts” and “energy financing contracts” set forth in Government
Code section 4217.10 et al. for the City projects identified in Exhibit A, as it finds it best
serves the City’s interest.
SECTION 4. Execution of Agreements. The City Manager and City Attorney are
hereby authorized and directed to negotiate any further changes, insertions and
omissions to the Service Agreement and Investment Grade Audit Work Order as they
reasonably deem necessary following the Council’s adoption of this Resolution. The City
Manager is further authorized and directed to execute and deliver any and all papers,
instruments, opinions, certificates, affidavits and other documents and to do or cause to
be done any and all other acts and things necessary or proper for carrying out this
Resolution and said Agreements.
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SECTION 5. Environmental Review. The California Environmental Quality Act
(CEQA) does not apply to the execution of the Services Agreement with PG&E or
adoption of this Resolution because this action does not constitute a “Project” under
CEQA Guidelines Sec. 15378. Participation in the Investment Grade Audit is exempt from
environmental review as a Statutory Exemption under Section 15262, Feasibility and
Planning Studies. Projects identified in the Investment Grade Audit will need future
authorization and environmental review prior to actual project funding and construction.
Upon motion of Council Member ___________, seconded by Council Member
___________, and on the following roll call vote:
AYES:
NOES:
ABSENT:
The foregoing resolution was adopted this _____ day of _______________ 2025.
___________________________
Mayor Erica A. Stewart
ATTEST:
______________________
Teresa Purrington
City Clerk
APPROVED AS TO FORM:
______________________
J. Christine Dietrick
City Attorney
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the
City of San Luis Obispo, California, on ______________________.
___________________________
Teresa Purrington
City Clerk
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EXHIBIT A
ANALYSIS ON PRIORITY LEAD BY EXAMPLE PROJECTS
PERFORMED BY WILLDAN ON BEHALF OF THE CITY OF SAN LUIS OBISPO
Description
Electricity
Savings
(kWh)
Electricity
Cost
Savings
Natural
Gas.
Savings
(therms)
Natural
Gas Cost
Savings
Water &
Sewer
Cost
Savings
O&M Cost
Savings
Total Cost
Savings Incentives* Installed
Cost
Simple
Payback
(years)
Swim Center
Decarbonization (36,922) $(7,983) 46,019 $60,662 $52,678 $62,084 $1,736,118 31.8
City Hall Boiler
Replacement (6,219) $(1,587) 4,444 $8,000 $6,413 $79,900 $930,000 132.6
Corp Yard
HVAC Elect. (28,398) $(6,709) 7,226 $11,799 $2,532 $7,621 $39,848 $400,000 47.3
DER - PV Only 343,105 $64,948 $64,948 $592,086 $1,973,618 21.3
Lighting 93,660 $27,404 $2,365 $29,768 $20,000 $472,901 15.2
Transformers* 16,356 $4,478 $4,478 $78,063 17.4
Onsite Pool
Chlorination* $41,000 $115,000 $156,000 $1,045,570 6.7
Total 381,583 $80,550 57,689 $80,461 $41,000 $119,896 $321,907 $799,918 $6,636,270 18.1
*The estimated incentives from PG&E GK12 are dependent on close collaboration between SLO, Willdan, and PG&E to meet
program requirements. Additional incentives may be available and some incentives may have conflicting requirements. Willdan will
support SLO from start to finish to maximize project incentives.
** Transformers and Onsite Pool Chlorination are proposed scopes in addition to scope of work outlined in the RFP.
If the Priority Lead by Example Energy Projects are implemented through the SST
program, the projected annual utility cost savings are $202,011, and the estimated annual
maintenance savings are $119,896. The total cost for the project (including capital costs,
oversight and contingencies, staff financing administration and oversight, anticipated
operation and maintenance cost impacts, and one annual lease payment) is $6,636,270.
Taken together, these projects are estimated to generate a n 18.1-year simple payback
period, after which point the City would generate cost savings. Given that the projected
lifespan the suite of proposed projects is longer than the 18.1-year simple payback period,
the finding may be made that these projects will generate cost savings for the City of San
Luis Obispo.
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SERVICE AGREEMENT
This Service Agreement (“Agreement”) is made and entered into as of the last date signed below
(“Effective Date”) by and between City of San Luis Obispo, a California municipal corporation and charter
city (“Customer”) and Pacific Gas and Electric Company, a California corporation (“PG&E”). Customer and
PG&E shall each individually be referred to as “Party” and together constitute the “Parties.”
I. RECITALS
A. PG&E is a public utility regulated by the California Public Utilities Commission. PG&E provides
power to customers in its service territory.
B. Customer receives power from PG&E at Customer facilities within PG&E’s service area.
C. PG&E also provides turnkey energy conservation services to customers (“Turnkey Services”).
Turnkey Services typically include energy conservation assessments of a customer facility and/or
installation of energy conservation measures (“ECMs”). Typical ECMs include, but are not limited
to, any of the following techniques, equipment, or other measures to reduce energy use or make
for a more efficient use of energy: energy efficiency measures, water efficiency measures, energy
generation measures, demand control measures, energy storage measures and services to
operate, maintain, repair, inspect and construct customer-owned or third-party electric and gas
systems.
D. PG&E is interested in providing Turnkey Services to Customer, and Customer is interested in
receiving Turnkey Services from PG&E. Customer will have the sole discretion whether to install
any ECM identified in any assessment provided as part of the Turnkey Services. Any such ECM
installation authorized by the Customer will be implemented by way of a Work Order (“WO”)
issued by Customer and subject to the terms and conditions of this Agreement.
E. At a public hearing on March 4, 2025, Customer’s governing body determined to enter into this
Agreement and adopted findings consistent with Government Code Section 4217.12 that the
anticipated costs of the energy conservation services provided under this Agreement will be less
that the Customer's anticipated cost of energy that would otherwise have been consumed by the
Customer in the absence of this Agreement.
F. This Agreement sets forth the terms and conditions under which PG&E may provide Turnkey
Services to Customer.
G. Now, therefore, in consideration of the promises and covenants set out herein, Customer and
PG&E agree as follows:
II. Agreement
A. Relationship of the Parties
1. No agency or partnership: Nothing in this Agreement creates an agency, partnership, or
other form of joint enterprise between the Parties, and neither Party may create any
obligations or responsibilities on behalf of the other Party. In conducting a Preliminary
Assessment or an Investment Grade Assessment as specified in Section B.1 below, PG&E
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is not acting on behalf of Customer but is acting in its private capacity as a vendor of
conservation services.
2. Subcontractors: PG&E may perform any or all Turnkey Services through subcontractors
(“Subcontractors”). PG&E agrees that, as between PG&E and Customer, PG&E shall be
solely responsible for the Subcontractors performance of the Turnkey Services under this
Agreement and any Work Order issued hereunder in respect of such Turnkey Services. In
addition, unless otherwise set forth in any such Work Order, the fees and costs billed to
Customer shall be inclusive of any and all fees and compensation due to any
Subcontractors. PG&E shall be responsible for the payment of any compensation,
monies, wages or other payment due or allegedly due Subcontractors. For purposes of
this Agreement, PG&E and its Subcontractors shall be collectively referred to as “PG&E”.
3. Project Management: Customer and PG&E shall each designate an authorized employee
(“Authorized Person”) who shall be the primary point of contact for inquiries and requests
relating to this Agreement.
B. Turnkey Services
1. Turnkey Services: Turnkey Services to be provided by PG&E under this Agreement in
respect of any particular energy conservation project (“Project”) shall consist of the
following phases:
1.1 Preliminary Assessment (“PA”): PG&E may conduct, at no cost to Customer, a PA
consisting of a brief on-site investigation and high-level evaluation of a Customer
facility to identify possible ECMs. The purpose of the PA is to determine whether
energy-related opportunities exist, and whether a more detailed assessment
and/or implementation is desired by the Customer.
1.2 Investment Grade Assessment (“IGA”): After reviewing the PA, the Customer
may issue a Work Order (“WO”) setting forth a Scope of Work for an IGA. An IGA
is a detailed assessment that describes the technical and financial feasibility of
implementing one or more potential ECMs. If applicable, it provides the
estimated energy savings and/or generation for each identified ECM. It may also
support procurement of project financing. The IGA will not recommend any
particular ECM and PG&E will not participate in any Customer decision whether
or not to authorize any particular ECM.
1.3 Implementation Work: Upon completion of the IGA, PG&E will provide an ECM
implementation proposal for the Project that was the subject of that IGA, which
will include a description of the additional design, engineering and construction
services PG&E could provide under this Agreement to implement the ECMs that
were the subject of the IGA, including the proposed price and schedule for
implementation. PG&E will not participate in any Customer decision regarding
whether and to what extent to pursue implementation of such Project. If
Customer decides to pursue implementation of the Project, it may issue an
Implementation WO to PG&E specifying, among other things, the ECMs to be
installed as part of the Project, price, schedule, and source of funding.
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2. IGA WO
2.1 The IGA WO is issued under and subject to the terms and conditions of this
Agreement, but will include Project-specific supplemental terms, such as price,
scope, and schedule. Unless otherwise agreed in the IGA WO, Customer will
provide PG&E, at no cost to PG&E, legible copies of all relevant facility plans and
other facility-related drawings and information in order that an accurate IGA can
be prepared. Customer will pay PG&E for the IGA according to the terms of the
applicable IGA WO. If Customer decides to implement one or more ECMs
identified in the IGA, the cost of the IGA will be included in the amount to be paid
to PG&E under the resulting implementation WO.
2.2 Ownership and title to any Deliverable produced by or on behalf of PG&E
pursuant to this Work Order will be transferred to Customer upon delivery of
Deliverable to Customer as per the Project Schedule, and no further agreement
will be necessary to transfer ownership to Customer. PG&E shall furnish Customer
all necessary copies of data used to prepare the documents that Customer
requires to complete its review and approval process.
2.3 The Parties understand and agree that all calculations, drawings and
specifications, whether in hard copy or machine-readable form, are intended for
one-time use in the performance of the SOW and any implementation thereof.
2.4 PG&E shall not be liable for any claims, liabilities, or losses arising out of, resulting
from, or in any way connected with, Customer’s use of the Deliverables for other
projects, except as permitted by PG&E in writing.
2.5 The Deliverables PG&E prepares as part of the SOW under this Work Order are
the Customer’s property, and PG&E will not make them available to any individual
or organization without Customer’s prior written approval; provided such
restriction does not apply to: (a) PG&E’s agents, employees, consultants,
representatives, or Subcontractors performing any portion of the SOW
hereunder, or (b) to regulatory authorities and government agencies.
3. Implementation Work and Project Construction
3.1 PG&E’s Responsibilities. On the date Customer in writing issues a WO that
authorizes and directs PG&E to commence Implementation Work, PG&E shall
commence the Implementation Work in accordance with the Agreement, the
WO, the WO’s attached Scope of Work and any applicable modifications to the
WO. PG&E will provide all professional and other services, labor, materials,
equipment, tools, transportation and other services necessary for the proper
performance and completion of the Implementation Work. PG&E will be
responsible for the means, methods, techniques, sequences and procedures to
implement the Project, and shall oversee Project construction. PG&E shall be
responsible for preparation of the Site for the Implementation Work. It is
acknowledged and agreed that PG&E, working on Customer’s behalf, will provide
all services to obtain all permits and approvals necessary to proceed with the
Implementation Work. Permitting fees will be the responsibility of the Customer.
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3.1.1 PG&E shall keep itself fully informed of and shall observe and comply
with all applicable state and federal laws and county and City of San
Luis Obispo ordinances, regulations, and adopted codes during its
performance of work. This includes compliance with prevailing wage
rates and their payment in accordance with California Labor Code,
as applicable.
3.1.2 PG&E will use commercially reasonable efforts to minimize
disruption to Customer’s use and operations at the Site. PG&E will
provide at least ten (10) calendar days written notice to Customer of
any planned power or other utilities outages that will be necessary
for the Implementation Work. Customer will cooperate with PG&E
in scheduling such outages, and Customer agrees to provide its
reasonable approval of any scheduled outage.
3.1.3 PG&E shall take all reasonable precautions to ensure the safety and
protection of PG&E personnel, Subcontractor employees and
Customer employees.
3.2 Customer's Responsibilities.
3.2.1 Customer will take reasonable measures to provide PG&E, its
personnel and Subcontractors with site access, suitable office space
and other reasonable accommodations and facilities necessary to
permit PG&E personnel and its Subcontractors to perform the
Implementation Work on this Project. While working on the Site, if
requested by Customer, the PG&E Project team personnel will be
located in an area adjacent to Customer's subject matter experts
and technical personnel, and all necessary security badges and
clearances will be provided for access to this area, all in accordance
with Customer’s vendor policies. Additionally, upon request
Customer will provide to PG&E and its Subcontractors relevant site
information or documents necessary to perform the
Implementation Work, including but not limited to a copy of the
authorizing Work Order(s), all modifications to Work Order(s), the
Agreement, a copy of relevant drawings, specifications, operation
and maintenance manuals for equipment at the Site, and other
pertinent documents.
3.2.2 Customer will take reasonable measures to arrange for a temporary
staging area for the storage and assembly of equipment for
completion of the Implementation Work, if needed.
3.2.3 Customer will coordinate the Implementation Work to be
performed by PG&E with the Customer’s operations and other
activities and with any other construction project that is ongoing at
or around the Site.
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3.3 Commissioning Services. PG&E shall perform commissioning services in
accordance with the equipment manufacturers’ startup and commissioning
recommendations.
3.4 Certificate of Substantial Completion. “Substantial Completion” means an ECM
is generally capable of being used for or achieving the purpose intended by the
Implementation WO relating to that ECM. Substantial Completion does not occur
until the ECM is commissioned and accepted by the Customer and the Customer
executes the Substantial Completion form attached to the WO. Promptly upon
Substantial Completion of each Project measure, PG&E will submit a Certificate
of Substantial Completion to Customer for such measure. Upon receipt of such
certificate, Customer may inspect the Implementation Work and meet with
PG&E’s Project Manager to determine if the Project measure has achieved
Substantial Completion. Customer shall, within ten (10) business days of receipt
of the Certificate of Substantial Completion, inform PG&E if Customer agrees that
the Project measure has achieved Substantial Completion. If Customer disagrees
that the Project measure has achieved Substantial Completion, Customer will
specify in detail and in writing the deficiencies requiring correction in order to
achieve Substantial Completion. When Substantial Completion has been
achieved it will execute and return the Certificate of Substantial Completion to
PG&E stating that: (i) the Project measure has achieved Substantial Completion
and the date on which it did so, and (ii) that on and after that date Customer will
assume responsibility for the Project measure’s operation, maintenance and
repair, for damage to or destruction of the Project measure, and for the Project
measure’s security and insurance coverage. Title to the Project measure
materials and equipment installed pursuant to a Work Order shall pass to
Customer on the date of Substantial Completion together with equipment
warranties.
3.5 Close-Out Documentation. Within forty-five (45) days after each Certificate of
Substantial Completion has been executed by Customer and received by PG&E,
PG&E shall provide Customer with (a) any applicable governmental approvals,
permits, and sign-offs, (b) all equipment specifications and ratings, (c) any
applicable test data and reports, (d) final as-built and shop drawings, (e) operating
instructions, operations and maintenance manuals and schedules, recommended
spare parts lists, and all other written information relating to the Project measure,
and (f) equipment warranties.
3.6 Final Completion. Promptly after PG&E reasonably believes that Final
Completion (as defined below in Section 3,6.1) of an ECM has occurred, including
completion of any punch list items that may have been listed on the Substantial
Completion Certificate for such ECM, PG&E shall issue to Customer a Notice of
Final Completion. Thereafter, Customer shall, within fourteen (14) business days,
deliver its acknowledgment that Final Completion has been achieved. The date
of Final Completion shall be the date of Customer’s written acceptance of PG&E’s
Notice of Final Completion. Customer’s failure to respond within the fourteen
(14) day notice period shall be deemed acceptance that Final Completion has
occurred.
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3.6.1 For purposes of this Agreement, the term “Final Completion” means
when all of the following have been accomplished in respect of a
specific ECM: (a) the ECM has achieved Substantial Completion, (b)
all “punch list” items listed on the ECM’s Certificate of Substantial
Completion have been completed, (c) all close-out documentation
specified in Section 3.5 has been delivered to Customer.
3.7 Final Project Completion. Promptly after PG&E reasonably believes that Final
Project Completion has occurred, PG&E shall issue to Customer a Notice of final
Project Completion that will include a summary of all ECMs and their respective
Substantial Completion Dates and Final Completion Dates. Thereafter, Customer
shall, within fourteen (14) days, deliver its acknowledgement that Final Project
Completion has been achieved. The date of final Project Completion shall be the
date of Customer’s written acceptance of PG&E’s Notice of Final Project
Completion. Customer’s failure to respond within the fourteen (14) day notice
period shall be deemed acceptance that Final Completion has occurred.
3.7.1 For purposes of this Agreement, the term “Final Project Completion”
means when all of the ECMs comprising the Project have achieved
Substantial Completion, and when all of the following have been
accomplished: (a) PG&E has delivered to Customer: (i) a release of
all lien rights, (ii) certification that all claims for payment for labor
and equipment for which PG&E is responsible have been paid or
satisfied, (iii) copies of waivers/releases of lien rights by
Subcontractors that have furnished more than twenty-five thousand
dollars ($25,000) of goods, services or both for the Project, (iv)
notice of all outstanding claims of PG&E, any Subcontractor or
equipment or materials supplier or distributor that may affect
Customer, PG&E or the Project, (v) a letter of indemnification
regarding claims not addressed by waivers/releases, and (b) removal
of all of PG&E and Subcontractors’ personnel, supplies, equipment,
waste materials, rubbish, and temporary facilities from the Site.
3.8 Ownership of Equipment
3.8.1 Ownership and title to any equipment, as further defined and
specified in the Investment Grade Audit report, purchased by PG&E
or its Subcontractor on Customer’s behalf in connection with
providing the Implementation Services will be transferred to
Customer upon Substantial Completion of the Project measure of
which such equipment is a part, and no further agreement will be
necessary to transfer ownership to the Customer.
3.8.2 PG&E shall not be liable for any claims, liabilities, or losses arising
out of, resulting from or in any way connected with Customer’s use
of such equipment.
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4. Cooperation and Access: Customer acknowledges that PG&E’s performance of Turnkey
Services depends upon Customer’s cooperation. Thus, Customer agrees to use its best
efforts to cooperate with PG&E in PG&E’s performance of Turnkey Services. Customer
will provide access to the subject Customer facilities for PG&E and its subcontractors to
perform any function related to this Agreement during regular business hours, or during
other reasonable hours as requested by PG&E and acceptable to Customer. PG&E will
comply with all Customer access procedures. Customer and PG&E will coordinate PG&E’s
activities with Customer’s activities and any construction or equipment installation will
occur according to a schedule approved by Customer in advance.
To the extent PG&E’s ability to perform depends upon Customer’s performance (e.g.,
Customer review or approval of drawings or other submittals or Customer providing data,
drawings, documents, or other information) and Customer’s performance is not
completed within the agreed time period, PG&E’s period for performance will be
extended accordingly and any costs incurred by PG&E because Customer’s performance
was not timely completed shall be reimbursed to PG&E.
Customer shall be responsible for ensuring that the Customer facilities that are the
subject of a WO under this Agreement are safe for PG&E personnel and subcontractors
performing Turnkey Services at those facilities and shall promptly take such actions that
may be requested by PG&E to help ensure a safe working environment.
Customer will use best efforts to assist PG&E in obtaining all necessary permits and
approvals for the performance of the Turnkey Services.
5. WO Modifications for Changes: If either Party proposes any material addition, deletion,
or modification to the IGA WO or implementation WO or Customer takes action which
may have a material impact on the work under the IGA WO or implementation WO, then
the Parties will negotiate a modification to the WO which is agreeable to both Parties,
and which shall be in writing that is signed and/or acknowledged by both Parties. If the
Parties are unable to reach agreement, PG&E will suspend its performance under the
applicable WO until such time as the dispute has been resolved pursuant to Section III.C
(Dispute Resolution) and the modified WO has been executed by both Parties.
6. PG&E’s Utility Obligations: Customer acknowledges that as a public utility, PG&E is
obligated to maintain, repair, and service its own facilities, including those under the
operation and control of the California Independent System Operator, and that this
obligation takes precedence over any obligations undertaken in this Agreement. If PG&E
decides, in its sole discretion, to divert personnel or resources committed to the
performance of Turnkey Services under this Agreement to meet a utility obligation,
PG&E’s actions will not constitute a default, and PG&E will have no liability to Customer
as a result. PG&E will have the option to resume the Turnkey Services as soon as possible
if it determines, in its sole discretion, that such resumption will not interfere with its
fulfilling its utility obligations.
C. Hazardous Materials and Other Unanticipated Conditions
1. Customer Responsibility: The Customer understands and agrees that PG&E has no
responsibility to investigate or inspect a Customer facility where Turnkey Services are
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being provided for the presence of any hazardous, toxic or dangerous wastes, substances,
chemicals, constituents, contaminants, pollutants, and materials subject to regulation
under applicable law (“Hazardous Materials”), or to identify, remove, dispose of, abate or
remediate Hazardous Materials. Customer shall have sole responsibility for the
identification, removal, disposal, abatement or remediation of Hazardous Materials, and
for the clean-up and disposal of any materials, equipment or substances containing,
exposed to or contaminated by Hazardous Materials, all in accordance with applicable
laws.
2. Discovery of Hazardous Materials: If PG&E discovers Hazardous Materials during the
course of providing Turnkey Services, PG&E will immediately cease work, remove all
PG&E personnel or subcontractors from the site, and notify Customer. Customer will be
responsible for handling and removal of such Hazardous Materials at its expense, and
Customer will bear the sole risk and responsibility. PG&E will not resume the Turnkey
Services until the Hazardous Materials have been removed and/or remediated to PG&E’s
reasonable satisfaction. Any schedule delay or increase in the Turnkey Services or costs
as a result of the presence of Hazardous Materials shall be grounds for a WO modification
as described in Section II.B.5.
3. Unanticipated Conditions: If any unanticipated conditions exist or arise at the site where
the Turnkey Services are being provided that could not reasonably have been anticipated
or discovered by PG&E (such as Hazardous Materials, environmental conditions or
pollution) and that would involve the incurrence by PG&E of any expenses to correct such
conditions, PG&E may cease work and request that Customer mitigate such
circumstances or it may submit a request for a modification of the work order to cover
any corrective work and payment of related expenses. The Parties will negotiate a
modification to the work order which is agreeable to both Parties. If the Parties are
unable to reach agreement PG&E will suspend its performance under the applicable work
order until such time as the disagreement has been resolved pursuant to the Dispute
Resolution process set forth in Section III.C. and the modified work order has been
executed by both Parties.
4. Safety Waiver: If during performance of the Turnkey Services a condition is discovered
at the work site that, in the sole judgment of PG&E (a) represents an extreme safety
hazard to its workers or other personnel, or (b) may cause operational failure of
equipment at the site or damage to other equipment being served by the site, PG&E will
immediately notify Customer of such condition and the Turnkey Services necessary to
remedy the condition. At PG&E’s sole discretion, it may either (a) suspend the Turnkey
Services at that work site until such condition has been corrected to PG&E’s satisfaction,
or (b) ask that Customer sign a written notification in the form of Exhibit A (Safety Waiver).
If Customer fails or refuses to either remedy the condition or sign the Safety Waiver, as
designated by PG&E, PG&E shall be entitled to continue or commence suspension of the
Turnkey Services at that site and refer the matter to Dispute Resolution under Section
III.C. PG&E will not be liable for any costs incurred as a result of such suspension of
Turnkey Services.
D. Compensation
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1. Payment terms: Customer will pay PG&E for the Turnkey Services provided according to
the payment terms contained in the relevant WO. All late payments shall be subject to an
interest charge, which is the greater of: (i) one and one-half percent (1.5%) per month, or
(ii) the maximum legal rate.
2. Expense: Customer agrees to reimburse PG&E for all expenses incurred in connection
with PG&E’s performance of the Turnkey Services, consistent with the provisions of the
applicable WO.
3. Taxes: Customer shall be solely responsible for the payment of any sales, use, transfer
and other taxes and duties which are imposed on PG&E because of the Turnkey Services
performed under this Agreement (other than taxes based on PG&E’s net income).
4. ACH Enrollment: Customer shall enroll in the ACH payment program and shall make all
payments for services under this Agreement by ACH.
E. Warranties
1. Services Warranty: PG&E warrants it will perform the Turnkey Services specified in a WO
under this Agreement in a commercially reasonable manner consistent with applicable
industry standards. The warranty period for Turnkey Services relating to an ECM is one
year from the date of Substantial Completion of that ECM. If Customer notifies PG&E
within that one-year warranty period of any non-conformity or defect in such Turnkey
Services, then PG&E will either re-perform, or refund the compensation received for such
defective Turnkey Services, in full satisfaction of its liability for any breach of its Services
Warranty. This Services Warranty extends to Customer only and cannot be assigned by
Customer.
2. Third Party Warranties: PG&E will use commercially reasonable efforts to obtain from
the manufacturers of equipment used in the Turnkey Services or ECMs installed as part
of a Project standard guarantees and warranties and will assign any such third party
warranties directly to Customer. Any warranty for such equipment is limited to such third-
party warranties, and PG&E will not be liable for any breach of a third-party warranty. If
Customer notifies PG&E of a defect in equipment installed as part of a Project within the
term of the applicable third-party warranty, PG&E will consult with Customer regarding
the appropriate remedy under the third-party warranty.
3. No Guarantee of Savings: Notwithstanding that the cost of the Turnkey Services provided
in connection with a particular Project is expected to be less than the energy savings
generated by such Project, PG&E does not warrant or guarantee any specific level of
energy savings, water savings, cost reductions, or equipment or ECM performance.
4. Disclaimer: Except as expressly provided in this Section E, Customer expressly agrees that
PG&E makes no other warranties in connection with the assessment, design, engineering,
equipment procurement, construction, implementation, operations, maintenance,
services, equipment or ECMs hereunder whether express or implied, in law, in equity or
in communications between PG&E and Customer. PG&E specifically disclaims any implied
warranties of merchantability or fitness for a particular purpose. Customer shall have no
remedies against PG&E for any defective services, installed equipment, or operation of
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an ECM except in accordance with the warranty set forth in this Section E or as the Parties
may expressly agree in any WO or amendment to this Agreement.
F. PG&E Insurance
Prior to commencing Turnkey Services under a WO, PG&E will provide Customer with evidence
that the following insurance is in full force and effect: (i) Worker’s Compensation Insurance as
required by applicable workers’ compensation laws; and (ii) Commercial general liability of
$5,000,000 per occurrence; and (iii) Automobile liability of $1,000,000 per person and $2,500,000
per occurrence for bodily injury and $1,000,000 per occurrence for property damage. PG&E shall
have the right to self-insure with respect to any of these insurance requirements.
G. Limitation of Liability
NEITHER PARTY SHALL BE LIABLE TO THE OTHER PARTY OR TO ANY PERSONNEL, SUBCONTRACTOR
OR OTHER PERSON OR ENTITY CLAIMING THROUGH SUCH PARTY FOR ANY SPECIAL, INCIDENTAL,
INDIRECT, PUNITIVE, OR CONSEQUENTIAL DAMAGES, ARISING OUT OF, OR IN CONNECTION
WITH, THIS AGREEMENT.
FURTHER, PG&E’S LIABILITY TO CUSTOMER UNDER THIS AGREEMENT, INCLUDING UNDER
SECTION III.H., WILL NOT EXCEED THE AMOUNTS OF INSURANCE PROVIDED FOR BY SECTION F
(REGARDLESS OF WHETHER AN INSURANCE CARRIER PROVIDES COVERAGE).
III. General Provisions
A. Term and Termination
1. Term: The term of this Agreement is five (5) years beginning on the Effective Date. Upon
thirty (30) days’ written notice prior to the expiration of the Agreement, the parties may
renew this Agreement for two (2) additional three (3) year extensions by mutual written
Agreement.
2. Termination for Cause: If either Party materially defaults in the performance of its
obligations under this Agreement or under a specific WO and the default is incapable of
being cured, or, being capable of being cured, has not been cured within thirty (30) days
after receipt of written notice of such default, this Agreement or that WO may be
terminated by the non-defaulting party for cause upon thirty (30) days written notice. In
addition to all remedies available to it at law or in equity, the non-defaulting party will be
entitled to recover all costs and expenses reasonably incurred to exercise its remedies,
including attorneys’ fees.
3. Termination for Change in Law: Either Party may terminate this Agreement, or a specific
WO, upon forty-five (45) days written notice, or sooner as may be required, without
liability or penalty if a change in law or regulations or a court or California Public Utilities
Commission ruling or order would prohibit PG&E from providing Turnkey Services under
this Agreement or that specific WO, in which event Customer would pay PG&E for the
Turnkey Services provided to Customer as of the effective date of such termination and
reimburse PG&E for reasonable demobilization costs incurred as a result of such
termination.
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4. Termination for Convenience: This Agreement or a specific WO may be terminated at any
time by the mutual Agreement of PG&E and Customer. Upon such termination, Customer
shall pay PG&E for those Turnkey Services provided to Customer as of the effective date
of such termination and reimburse PG&E for reasonable demobilization costs incurred as
a result of such termination.
B. Force Majeure.
If a Party is unable to perform its obligations under this Agreement due to any cause, event or
other occurrence materially impacting the Turnkey Services that is not caused by that party or
within its control to avoid or remedy (“Force Majeure Event”), this Agreement will at the other
party’s option: (i) remain in effect but the performing party’s obligations will be suspended until
the Force Majeure Event has ended; or, (ii) be terminated upon ten (10) days’ notice to the non-
performing party, in which event neither party will have any further liability to the other, other
than Customer’s obligation to pay PG&E; (i) for Turnkey Services rendered prior to the Force
Majeure Event; and (ii) for reasonable demobilization costs incurred as a result of such
termination.
C. Dispute Resolution.
If any dispute, excluding payment defaults or delinquencies, arises under this Agreement that is
not settled promptly in the ordinary course of business, the Parties will first attempt to resolve
such dispute by negotiating promptly in face-to-face negotiations between the respective
designated senior managers of each Party. If the Parties are unable to resolve the dispute through
these negotiations within thirty (30) business days following the start of such negotiations, then
the Parties shall escalate the dispute to the business line vice president of PG&E and the
appropriate senior manager within Customer’s organization. If the matter has not been resolved
within thirty (30) business days following commencement of discussions between the senior
executives, either Party may initiate a non-binding mediation. If Parties are unable to resolve
their dispute by way of non-binding mediation, the cost of which shall be shared equally by the
Parties, then either Party may file suit in a court of competent jurisdiction. Completion of non-
binding mediation is a condition precedent to commencement or continued prosecution of
litigation. All negotiations and any mediation conducted pursuant to this Section III.C are
confidential and shall be treated as compromise and settlement negotiations, to which Section
1119 of the California Evidence Code shall apply, and Section 1119 is incorporated herein by
reference.
D. Notices.
Any notice required or permitted under this Agreement will be deemed sufficient if given in
writing and delivered personally or sent by registered or certified mail, return receipt requested,
postage prepaid, or delivered to a nationally recognized express mail service, charges prepaid,
receipt obtained, to the address shown below or to such other persons or addresses as are
specified by similar notice.
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To Customer:
To PG&E:
_______________________________________
_______________________________________
_______________________________________
cc: ____________________________________
Pacific Gas and Electric Company
300 Lakeside Drive,
Oakland, CA 94612
Attn: New Revenue Development
SST Contract Specialist
cc: General Counsel
PG&E Law Department
E. Applicable Law and Venue.
This Agreement is governed, construed, and enforced in accordance with the laws of the State of
California, without regard to its conflict of laws rules. Any controversy or claim arising out of or
relating to this Agreement shall be litigated in a California Superior Court of competent
jurisdiction; or if jurisdiction over the action cannot be obtained in a California Superior Court, in
a Federal District Court of competent jurisdiction situated in the State of California, and Customer
hereby consents to the personal jurisdiction of such courts.
F. General Terms.
This Agreement contains the entire Agreement between the Parties regarding the Turnkey
Services and supersedes any other prior oral or written Agreements. If a conflict or inconsistency
arises between the terms of this Agreement and any WO issued under it, the WO will control, as
specified in Section D.8. Any different or additional provisions in purchase orders, invoices or
similar documents issued by the Customer are deemed refused by PG&E and unenforceable. Any
modifications to this Agreement must be in writing and signed by the Parties. A waiver by either
Party of any breach does not constitute a waiver of different or subsequent breaches. If any part
of this Agreement is invalid, illegal, or unenforceable for any reason, that portion shall be replaced
with a valid provision appropriate to the Parties’ original intent and the remainder will be
enforced.
G. Execution of Agreement.
This Agreement may be executed by providing an electronic signature under the terms of the
Electronic Signatures Act, 15 U.S.C. SS 7001 et. seq., and may not be denied legal effect solely
because it is in electronic form or permits the completion of the business transaction referenced
herein electronically instead of in person. The exchange of copies of this Agreement and of
signature pages by electronic mail transmission will constitute effective execution and delivery of
this Agreement as to the parties and may be used in lieu of the original Agreement for all
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purposes. Signatures of the parties transmitted by electronic mail will be deemed to be their
original signatures for all purposes.
H. Indemnification
Each Party shall indemnify, defend, and hold harmless the other Party and its officers, officials,
employees, agents and volunteers ("Indemnitees") from and against any and all liability, loss,
damage, claims, suits, actions, arbitration proceedings, administrative proceedings, regulatory
proceedings, civil penalties and fines, expenses and costs (including, without limitation, claims
expenses, attorney's fees, and costs and fees of litigation) of every nature to the extent arising
out of the negligence or willful misconduct of the indemnifying Party or its officers, officials,
employees, or agents (“Indemnifying Parties”) in connection with the services provided under this
Agreement and any WO issued under it. In no event, however, will the Indemnifying Parties be
required to reimburse or indemnify any of the Indemnitees to the extent such losses are due to
the negligence or willful misconduct of the Indemnitees.
I. Order of Precedence
In the event of a conflict between the provisions of this Agreement and a WO, (including, in each
case, any Exhibit or Schedule thereto), the following order of precedence shall apply (in
descending order): (a) any modification to a WO; (b) the WO; (c) amendments to this Agreement;
and (d) this Agreement
Intending to be legally bound, the Parties execute this Agreement by their duly authorized
representatives.
PACIFIC GAS AND ELECTRIC COMPANY CITY OF SAN LUIS OBISPO
By: By:
(Signature) (Signature)
Name: Name:
Title: Title:
Date: Date:
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EXHIBIT A
SAFETY WAIVER
PG&E has informed the Customer’s on-site representative of the following condition(s) which, in the
opinion of PG&E’s on-site representative, should be remedied before the Turnkey Services may be
resumed at the work site. Customer recognizes that if the below-listed condition at the work site is not
remedied as recommended by PG&E, an accident may occur, causing damage to the work site, equipment
and/or injury to persons, including but not limited to, the employees of Customer, PG&E and
subcontractors.
By signing this waiver, Customer acknowledges and accepts all liability associated with this condition.
Description of condition:
Description of condition:
Equipment ID#: _____________________ (If applicable)
Executed this ___ day of ___________________, _______
Facility name: ____________________________________
_____________________
Sign: ____________________________________________
Name (print): ______________________________________
Title ____________________________________________
Date: ____________________________________________
PACIFIC GAS AND ELECTRIC COMPANY
Sign: ___________________________________________
Name (print): ____________________________________
Title: ___________________________________________
Date: ___________________________________________
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PGE Agreement No.: SST SLO IGA WO 2025-XXX
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INVESTMENT GRADE AUDIT
WORK ORDER
This WORK ORDER (“Work Order”), effective as of the date of the last signature (“Work Order
Effective Date”), is issued by the City of San Luis Obispo, California (“Customer”) to Pacific Gas and
Electric Company (“PG&E”). This Work Order is issued under and subject to the terms and conditions of
the Service Agreement, between Customer and PG&E, dated ___________ (“Agreement”), attached
hereto and incorporated herein as Exhibit A. Customer and PG&E shall each individually be referred to
as “Party” and together constitute the “Parties”.
Pursuant to the provisions of the Agreement, Customer, in its sole discretion, authorizes PG&E
to perform certain energy conservation assessment services (“Services”), and hereby notifies PG&E to
commence performance of such Services as further described below:
PROJECT NAME: City of San Luis Obispo Priority Lead by Example Energy Projects Investment
Grade Audit (“IGA”)
PROJECT LOCATION: Various Locations – See Exhibit B – Scope of Work
WORK ORDER VALUE: $75,000.00
1. SCOPE OF WORK AND TERM
1.1 Scope of Work. PG&E will provide those Services set forth in Exhibit B (“SOW”), which is
attached hereto and incorporated by reference herein. PG&E shall have no obligations to perform any
Services under this Work Order unless and until Customer has executed and issued this Work Order
under the Service Agreement and PG&E has acknowledged the Work Order consistent with Section 5
below. The issuance of this Work Order does not commit PG&E to perform any future work for
Customer beyond the scope of the SOW.
1.2 Term. This Work Order shall commence upon the Work Order Effective Date and
continue for eight (8) months; unless sooner terminated or extended as permitted under the Agreement
(the “Work Order Term”).
2. CUSTOMER RESPONSIBILITIES
Customer will take reasonable measures to provide PG&E personnel and Subcontractors with
project location access, suitable office space, and other reasonable accommodations necessary to
permit PG&E personnel and its Subcontractors to perform the SOW. While working on the project
location, if requested by Customer, the PG&E project team personnel will be located in an area adjacent
to Customer's subject matter experts and technical personnel, and all necessary security badges and
clearances will be provided for access to this area, consistent with Customer’s vendor policies.
Customer will provide PG&E and its Subcontractors relevant project location information or documents
necessary to perform the SOW, including but not limited to existing facility utility mapping, construction
drawings, equipment data, and operation and maintenance data.
3. DELIVERABLES
As described in the SOW, the “Deliverables” that PG&E will provide to Customer include:
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30% IGA [Report/Workshop Presentation]
60% IGA [Report/Workshop Presentation]
100% IGA [Report/Fixed Price Proposal]
4. MODIFICATIONS
If a modification to this Work Order is necessary, the Parties agree to follow the modification
process set forth in Section II.A.5 of the Agreement.
5. AUTHORIZATION
Upon receiving this Work Order, PG&E will review the Work Order and SOW to verify
acceptability of the terms. PG&E’s acknowledgement of this Work Order shall indicate PG&E’s
acceptance of the terms and conditions set forth herein.
6. PAYMENT
6.1 Within 45 days after PG&E delivers the 100% IGA Report, Customer shall either (1) pay
PG&E in one lump sum the Work Order Value set forth above, or (2) provide written notification to PG&E
that it intends to issue a project implementation work order to PG&E and that the amount owing will be
added to PG&E’s total project implementation costs, which may be financed. If Customer does not
implement the project or opts out of the IGA after the 30% Preliminary IGA Presentation or the 60% Pre-
Final IGA Presentation, Customer must pay PG&E the amount owing, for work completed, under this Work
Order.
6.2 Each PG&E invoice will reference this Work Order and be submitted to Customer’s billing
address, which is indicated below. Customer must render, or instruct its financial institution to render, all
payments to PG&E within forty-five (45) days from the invoice date. Each payment made by Customer,
or its third-party designee, must reference this Work Order and invoice number. All late payments shall
be subject to an interest charge, which is the greater of: (i) one and one-half percent (1.5%) per month,
or (ii) the maximum legal rate. The Customer shall enroll in PG&E’s Automated Clearing House (“ACH”).
payment program and shall make all payments for services under this Agreement by ACH.
6.3 If a payment dispute arises under this Work Order that is not settled promptly in the
ordinary course of business, the parties shall follow the dispute resolution procedures set forth in Section
III.C of the Service Agreement. Notwithstanding anything to the contrary in the Service Agreement or this
Work Order, pending the resolution of the issue(s), PG&E may temporarily suspend its performance of
the Services until such dispute has been resolved.
7. NOTIFICATIONS AND INTERFACE
Both Parties shall contact and/or deliver written notices (email is acceptable) to the business
contacts below in the normal course of business, and in the event of any problems which may
significantly affect the performance of the SOW under this Work Order.
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BUSINESS CONTACTS:
CUSTOMER PACIFIC GAS AND ELECTRIC COMPANY
Name Lucia Pohlman Name John Garnett
Title Sustainability Analyst Title Principal Product Manager
Address 990 Palm Street Address 245 Market Street, Mail Code N10D
San Luis Obispo, CA, 93401 San Francisco, CA 94105
Phone 805-783-7869 Phone 415-972-5402
Email lpohlman@slocity.org Email John.Garnett@PGE.com
8. OWNERSHIP OF DELIVERABLES
8.1........ Ownership and title to any deliverable produced by or on behalf of PG&E pursuant to this
Work Order will be transferred to Customer upon delivery of deliverable to Customer as per the project
schedule, and no further agreement will be necessary to transfer ownership to Customer. PG&E shall
furnish Customer all necessary copies of data used to prepare the documents that Customer requires to
complete its review and approval process.
8.2... The Parties understand and agree that all calculations, drawings, and specifications, whether
in hard copy or machine-readable form, are intended for one-time use in the performance of the SOW
and any implementation thereof.
8.3... PG&E shall not be liable for any claims, liabilities, or losses arising out of, resulting from, or in
any way connected with, Customer’s use of the deliverables for other projects, except as permitted by
PG&E in writing.
8.4 If Customer terminates this Work Order prior to PG&E completing the SOW, Customer will pay
PG&E on a percentage-of-completion basis. Upon receiving such payment, PG&E will deliver to
Customer the deliverables in the state of completion they were in when Customer terminated. Such
deliverables will be deemed provided “AS IS” and “WITHOUT WARRANTY” but with all ownership rights
otherwise provided in this Work Order.
9. RELEASE OF REPORTS AND INFORMATION
The deliverables PG&E prepares as part of the SOW under this Work Order are the Customer’s
property, and PG&E will not make them available to any individual or organization without Customer’s
prior written approval; provided such restriction does not apply to: (a) PG&E’s agents, employees,
consultants, representatives, or Subcontractors performing any portion of the SOW hereunder or any
implementation work performed by PG&E for Customer that is based on such deliverables, or (b) to
regulatory authorities and government agencies
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10. AUTHORITY
Each Party represents and warrants that the individual signing below, as well as any
modifications and approvals hereunder, has and shall have all requisite power and legal authority to
bind the Party on whose behalf he/she is signing to that Party’s obligations hereunder.
IN WITNESS THEREOF, the Parties agree to be bound by this Work Order as of the Work Order
Effective Date set forth above.
Acknowledged:
PACIFIC GAS AND ELECTRIC COMPANY
Signature:
Print Name:
Title:
CITY OF SAN LUIS OBISPO, CALIFORNIA
Signature:
Print Name:
Title: C
Date:
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EXHIBIT A
CITY OF SAN LUIS OBISPO AND PACIFIC GAS AND ELECTRIC COMPANY SERVICES AGREEMENT
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EXHIBIT B
SCOPE OF WORK
This Exhibit B to the Investment Grade Audit Work Order describes the scope of work, timelines and cost
for the assessment of possible energy conservation measures (ECMs). To the extent feasible, PG&E will
conduct the work on each location, identified below, simultaneously.
Facilities and Measures
PG&E will evaluate all city facilities as requested by the Customer, including, but not limited to, those
shown in the following Table 1:
Table 1:
Site
Swim Center
City Hall
Corporate Yard
Police Station
City-County Library
Parks and Recreation Office
PG&E will consider the ECMs identified in the following Table 2 (as well as other ECMs that come to light
during the IGA process which the Parties agree should be considered):
Table 2: IGA Energy Conservation Measures
ECM # ECM Description
1 Swim Center Decarbonization
2 City Hall Boiler Replacement with Heat Pump
3 Corporation Yard Gas-Fired Furnace Replacement with Heat Pump
4 DERs/Peak Shaving
5 Lighting Upgrades
6 On-site Chlorine Generation
7 Transformer Upgrades
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Project Meetings & Submittals
PG&E will lead a project kickoff meeting with Customer personnel to review the project and start the
project activities including:
Discuss project goals, scope, process and schedule.
Discuss Customer expectations, needs and preferences as well as any issues and constraints.
Review PG&E data needs.
Establish Project Site work protocols and procedures including safety, security, allowable work
hours, vehicle parking, and access to facility areas.
PG&E will lead bi-weekly status, planning and coordination meetings with Customer via telephone
conference calls or in person as appropriate. PG&E will submit a list of preliminary ECMs in connection
with the 45% draft IGA Report which will be submitted to Customer for review and comment. PG&E will
do the same when the 90% draft IGA Report is complete. Once Customer selects the final ECMs that it
wants to include in the Project, PG&E will submit the Final IGA Report to Customer in order that the
Customer may determine whether to proceed with a Work Order for the implementation of the ECMs it
has selected.
Project Site Visits
PG&E will perform Project Site visits as required to communicate with Project Site personnel, collect
facility information, obtain system/equipment data and conduct project bid-walks with selected vendors
and subcontractors.
Development of Measures
PG&E will identify technically and economically feasible ECMs at the sites identified in Table 2. This effort
will typically involve the following activities:
Perform detailed on-site surveys (audits) of existing energy and water consuming systems.
Evaluate existing Project Site conditions to gain an understanding of buildings, systems,
structures, and facility operation needed for energy analyses and design of ECMs.
Collect operation data for energy consuming systems
Establish energy usage baseline, determine energy savings calculation methodology and prepare
detailed energy savings calculations for a cost benefit analysis that will assess whether the
anticipated cost of an ECM will be less than the anticipated cost of energy that would otherwise
be consumed by the Customer in the absence of implementing an ECM.
Determine the eligibility and prepare the calculations for energy incentives and rebates, On-Bill
Financing (OBF), California Energy Commission (CEC), GS Smart, and/or other loan programs and
assist Customer in the respective application processes.
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Develop detailed solutions including preliminary designs and scopes of work required for project
implementation.
Identify sub-contractors necessary to implement an ECM
Validate expected benefits, energy and cost savings, and implementation costs.
Consult with Customer to identify project funding sources.
Prepare and submit final IGA report and implementation proposal.
IGA Report
The 100% IGA report and project implementation proposal will include the following:
Executive Summary - Provides an overview of the scope of work, financials and options for
Customer consideration.
Facility Description-
o Overview of the facility (building square footage, age, occupancy and functions,
retrofit/improvement history, schedule of operation etc.)
o Overview of major systems (HVAC, lighting, process and control) Including basic parameters
and control strategy of major equipment (Quantities, capacity, horsepower, operation
schedule etc.)
Utility Analysis – This analysis examines relevant utility information for each Project Site for the
past twenty-four (24) months (as available from the utility providers) to establish baseline
consumption, demand profile, costs and rates for electricity, water and natural gas. This effort
will also include energy benchmarking of each facility to show energy use performance relative to
similar facilities in industry standard databases.
Energy Allocation Analysis – An energy use allocation analysis will be created for each facility to
show end use energy consumption. This analysis examines end use energy consumption for
significant systems and equipment at the Project Sites and relates it to the total utility
consumption for the facility.
Measures – Provides a detailed discussion of each ECM including existing conditions, proposed
solution, scope of work for implementation, and expected benefits, savings and implementation
costs. Technical and financial data to support the recommendations and conclusions for each
ECM will be provided in sufficient detail to enable Customer to make an independent evaluation
and decision regarding each ECM. For example, the energy and O&M savings analysis will include
the following:
o Base year energy use and cost
o Post-retrofit energy use and cost
o Savings estimates including analysis methodology, supporting calculations and
assumptions
o Operation and maintenance savings methodology, calculations and key assumptions
o Spread sheet analysis and/or computer simulation (where appropriate) – each analysis
will include a short description and statement of key input data.
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Cost Benefit Analysis – Provides a financial analysis of each ECM including simple payback and a
Savings to Investment Ratio (SIR) using Life Cycle Cost Analysis (LCCA). These analyses will include
inflation rates, discount rates and utility escalation rates.
Design Information – Appropriate design information will be provided as necessary to
supplement the written description of each ECM selected by Customer for implementation, to
sufficiently describe the function and features of the proposed solution, and to provide sufficient
detail for developing firm design-build construction costs. Final design packages will be provided
as part of the construction portion of each project phase.
Project Rebates and Incentives – Provides a description of available rebate and incentive
programs for which the proposed projects are eligible including all related documentation
necessary to successfully complete the application process. Upon the Customer's direction, PG&E
will initiate the rebate and incentive process and will provide a schedule identifying key tasks,
milestones and roles and responsibilities associated with the approval process including
calculations and the coordination of pre-construction (baseline) inspections, and post
construction measurement and verification.
Project Design and Construction Schedule – Provides a preliminary project design and
construction schedule (Microsoft Project Gantt Chart format) identifying each task including key
milestones and responsible parties.
Turn-Key Construction Cost – Provides a detailed and transparent firm fixed cost proposal for
each identified ECM and the overall project package. Includes a preliminary schedule of values
for the implementation phase of the project and a breakdown of subcontract, equipment,
material, labor, overhead & profit
Performance Assurance Approach – Provides a summary of the performance assurance
approach and performance measurement matrix for each recommended ECM.
IGA DELIVERABLES
PG&E will provide the following Deliverables to Customer as part of the IGA Report:
Meeting notes for PG&E/subcontractor meetings with Customer
Electronic copies of worksheets and calculations of financial analysis and energy and water usage
and cost savings for review
Hardcopy and soft copy of the Final IGA Report and Project Implementation Proposal
Preliminary implementation schedules for all identified ECMs.
ASSUMPTIONS AND CLARIFICATIONS
The following assumptions and clarifications apply to this Scope of Work:
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PGE Agreement No.: SST SLO IGA WO 2025-XXX
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PG&E assumes that certain facility data/information will be made available by Customer in a
timely fashion including utility bills, facility construction drawings, equipment data, and O&M
data.
PG&E will require close coordination with Customer personnel in order to successfully complete
the IGA. PG&E assumes that appropriate personnel will be available during the Project Site visits
and meetings and will also be readily available by email and telephone for follow-up consultations.
Customer will provide escorts for PG&E personnel if needed while visiting the Project Site.
Customer will arrange and provide access for PG&E to all facility areas and equipment as needed
to complete the work.
The Parties acknowledge that PG&E is not acting as City's representative with regard to any public
contracting decisions and will not recommend any particular ECM and will also not participate in
any Customer decision whether or not to authorize any particular ECM.
SCHEDULE
PG&E is prepared to begin work upon the Work Order Effective Date. Based upon the Assumptions and
Clarifications above, PG&E plans to complete the IGA within seven months (7) from the Work Order
Effective Date.
COST
PG&E’s price to provide the Services described herein is Seventy-Five Thousand Dollars ($75,000.00).
Allocation of IGA Cost by Deliverable
Completion of 30% Preliminary IGA Presentation: Twenty-Five Thousand Dollars ($25,000)
Completion of 60% Pre-Final IGA Presentation: Twenty-Five Thousand Dollars ($25,000)
Completion of Final IGA Report: Twenty-Five Thousand Dollars ($25,000)
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CITY OF SAN LUIS OBISPO
San Luis Obispo, California
Sustainable Solutions Turnkey Contract
RFP for Investment Grade Assessment
RFP #224691
December 20, 2024
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Proposal for IGA City of San Luis Obispo
Request for Proposal 224691
Pacific Gas and Electric
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Contents
1. Executive Summary ........................................................................................................................................................................... 1
2. Energy Conservation Measures and Scope Details ........................................................................................................................ 3
ECM 1. Swim Center Decarbonization 3
ECM 2. City Hall Space Heating Boiler Replacement with Heat Pump 5
ECM 3. Corp Yard and Ludwick Center Gas-Fired Furnace Replacement 6
ECM 4. Distributed Energy Resources/Peak Shaving 7
ECM 5. Lighting Upgrades at Police Station, City-County Library and Parks and Recreation Offices 8
Additional Proposed Project Scopes 9
Additional Potential Project Scopes to be Explored in IGA at SLO’s Direction 10
3. Total Life-Cycle Cost Approach ...................................................................................................................................................... 12
4. Project Schedule .............................................................................................................................................................................. 12
5. Staffing Plan ..................................................................................................................................................................................... 14
6. Experience in Energy Conservation Projects ................................................................................................................................ 16
7. Experience with Similar Customer and Facility Types ................................................................................................................. 17
8. Competitive Methodology for Selecting Sub-Contractors .......................................................................................................... 17
9. Proposed IGA Fee ............................................................................................................................................................................ 18
10. Cost Data ........................................................................................................................................................................................ 19
Proposed Project Financial Overview 19
Experience with Relevant Funding Programs – PG&E GK12 22
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1. Executive Summary
November 23, 2024
Pacific Gas and Electric Company
Sourcing Dept. | Attn: Paula Paschal
300 Lakeside Drive
Oakland, CA 94612
RE: PG&E Request for Proposal
(RFP) No. 224691 City of San Luis
Obispo
The City of San Luis Obispo (SLO) has
a commitment to leveraging turnkey
energy performance contracting. This
is a significant opportunity to further its
aggressive sustainability and energy
efficiency goals. Willdan is a leader in
turnkey performance contracting and
decarbonization, with a history of
service to SLO that goes back 17
years. We are dedicated to continuing
this service by supporting SLO’s
energy initiatives.
Exhibit 1 summarizes our proposed
primary project results for SLO,
addressing all key priorities in a fiscally
responsible manner. On the next page,
we provide a brief overview of our
proposed scopes, plus additional
options for SLO to consider for
maximized project benefits.
Exhibit 1. City of San Luis Obispo Proposed Primary Project Benefits and Results
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Willdan’s proposed project for SLO builds on our experience developing decarbonization projects in California (CA) and nationwide.
Our solutions incorporate additional distributed energy resources (DERs) and energy efficiency upgrades beyond the requested
scopes to maximize SLO’s decarbonization and cost savings goals.
Requested Project Scopes
Our proposed primary project scope includes the five Energy Conservation Measures (ECMs) noted
in SLO’s Scope of Work (SOW) document. Key solution highlights include:
Measure 1: Swim Center Decarbonization
A combination of solar thermal system and air-source heat pumps achieves 100% reduction in
natural gas usage.
Measure 2: City Hall Space Heating Boiler Replacement with Heat Pump
This avoids natural gas usage in primary heating and retains existing equipment as redundant
backup options for resiliency.
Measure 3: Corp Yard and Ludwick Center Gas-Fired Furnace Replacement
Heat Pumps achieve electrification goals while providing heating and cooling.
Measure 4: Distributed Energy Resources/Peak Shaving
Solar photovoltaic (PV) at three City sites and battery energy storage systems (BESS) at three City sites to provide on-site
renewable energy generation, decarbonization, utility savings, and resiliency.
Measure 5: Lighting Upgrades at Police Station, City-County Library, and Parks and Recreation Offices
LED lamp and ballast retrofits reduce energy consumption and operations and maintenance (O&M) burden while improving
lighting quality.
Additional Proposed Project Scopes
Our proposed scope includes the following measures which will provide utility and operational savings to help fund ECMs 1-5.
Measure 6: Swim Center On-site Chlorine Generation
This reduces treatment costs and on-site storage and handling of hazardous chemicals.
Measure 7: Transformer Upgrades
Replacing aging transformers provides utility cost savings and prevents costly and disruptive failures.
Additional Potential Project Scopes to Be Explored in Investment Grade Audit (IGA) at Direction of SLO
The Willdan team has identified six additional areas for SLO to consider for inclusion in the IGA. These additional potential projects
were identified based on stated SLO staff comments and our team’s Site Walk observations. These items include:
VFD Pool Pumps Wastewater Infrastructure Repair Water Fixture Efficiency
Advanced Irrigation Controls Electrical Infrastructure Upgrades Biogas Refinement for Energy Generation
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Request for Proposal 224691
Pacific Gas and Electric
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2. Energy Conservation Measures and Scope Details
Section 2 Energy Conservation Measures and Scope Details covers each ECM from RFP Section 4. Proposal Deliverables and
our proposed additions.
Note: To comply with the order of SLO RFP prompts, we provide pricing for each ECM in Section 10. Cost Data.
ECM 1. Swim Center Decarbonization
Existing Equipment, Site Conditions, etc.
2 x 750 MBH output domestic hot water
(DHW) boilers
2 x 1,445 MBH output competition pool
boiler
1 x 391 MBH output therapy pool boiler
Solar Thermal
Meet ~44% of pool and DHW heating demands
Provide shaded seating in stands
Air to Water Heat Pumps
Will pick up any remaining heating load not met
by the solar thermal system
Existing Boilers
Can be maintained as a hybrid system providing
additional resiliency
Benefit for SLO
Fully decarbonizes the largest gas-consuming
facility in the city’s portfolio
Leverages ideal solar resources
Annual Savings: $37,100 (Energy), 439 (MT C02e)
Desired Solution & Modernization: Willdan’s proposed scope for ECM 1 is replacing/supplementing the existing gas-fired pool
and domestic water boilers with arrays solar thermal collectors for both pool and domestic water heating coupled with an air-to-
water heat pump for peak heating conditions.
Recommended Solution Existing Conditions
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Proposed solar thermal system layout and photo of a sample covered structure for the bleachers
ECM Experience with Similar Customers and Facilities
Client Name King County
Facility Type Community Aquatic Center
Project Scope Replacement of gas boilers with air-to-water heat pumps, numerous other pool improvements
Annual Savings $33,000
Relevance for San Luis Obispo Complete decarbonization of comparable municipal swim center utilizing a similar approach
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ECM 2. City Hall Space Heating Boiler Replacement with Heat Pump
Existing Equipment, Site Conditions, etc.
50-ton air-cooled chiller with a CHW
buffer tank
760 MBH gas-fired boiler for HVAC
heating
Air-to-Water Heat Pump
Located in Courtyard and piped to the CHW and
HHW systems
The heat pump will be the primary source of cooling
and heating
Annual Savings: $6,400 (Energy), 23.5 (MT CO2e)
ECM Experience with Similar Customers and Facilities
Client Name Sonoma County, CA
Facility Type Cloverdale Veterans Memorial Building and Heavy Fleet Facility
Project Scope The Veterans Memorial Building holds large events and serves as an emergency gathering place. It
has a commercial kitchen, showers, and a pool. The existing domestic natural gas DHW system was at
the end of its useful life. Willdan replaced the existing system with two 120-gallon heat pump water
tanks. This solution exceeded both their existing storage and gallon-per-hour capacity.
The Heavy Fleet Facility services the County’s heavy fleet vehicles. Willdan replaced gas-fired
equipment serving the existing DHW load (hand sinks and mop sinks) with a 50-gallon electric heat
pump system.
Annual Savings 1,460 therms
Relevance for San Luis
Obispo
Delivery of electrification measures in support of the County’s decarbonization goals
Historic building
Project delivered under the PG&E Sustainable Solutions Turnkey (SST) Program
Secured $90k in incentives from the PG&E Government K-12 (GK12) Program
Desired Solution & Modernization: Willdan’s proposed scope for ECM 2 is to replace the existing heating hot water (HHW) boiler
with a 70-ton air-source heat pump. The heat pump will connect to the existing chilled water (CHW) and HHW piping to provide
cooling and heating.
Existing Conditions Recommended Solution
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ECM 3. Corp Yard and Ludwick Center Gas-Fired Furnace Replacement
Existing Equipment, Site Conditions, etc.
Corp Yard
22.5 tons of split-DX
systems: Outdoor
Condensing Units
and Indoor Gas-
Fired Furnaces
Ludwick Center
22.0 tons of packaged
rooftop AC units with gas-
fired heat
Current Issues Observed/Noted
The rooftop units at the Ludwick Center are in poor
condition and at the end of their effective useful lives
Corp Yard
Replace 22.5 tons of split-DX equipment
with split-heat pump systems
New equipment includes outdoor heat pump
condensing units and indoor heating units
Ludwick Center
Replace 22.0 tons of packaged DX
equipment with packaged heat pumps of like capacity
Benefit for SLO
Electrifies HVAC systems
Reduces carbon footprint
Lowers utility and maintenance costs
Eliminates HVAC natural gas usage
Annual Savings: $7,300 (Energy) + $5,000 (O&M),
43.3 (MT CO2e)
ECM Experience with Similar Customers and Facilities
Client Name City of Dublin, CA
Facility Type Municipal facilities
Project Scope HVAC equipment and controls upgrades across 23 units and 7 facilities
Retro-commissioning 15 units and associated controls at an additional facility for low-cost and
no-cost improvements
Annual Savings $56,000 in year-one savings from HVAC and controls upgrades and retro-commissioning
Relevance for San Luis Obispo HVAC and control upgrades in CA municipal facilities delivered via comprehensive turnkey
energy project and funded with project incentives and savings
Desired Solution & Modernization: Willdan’s proposed scope for ECM 3 is to replace the packaged gas-electric and split-direct
expansion (DX) units with equivalent capacity heat pump equipment.
Existing Conditions Recommended Solution
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Pacific Gas and Electric
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ECM 4. Distributed Energy Resources/Peak Shaving
Existing Conditions Recommended Solution
Existing Equipment, Site
Conditions, etc.
No existing solar PV at Corp Yard
and Police Station
The SLO Swim Center is slated to
have a 262 kWdc system installed
in 2025
Ludwick Center has an
approximately 20-year-old failing
solar PV rooftop system
No existing BESS at any site in
scope
Solar PV Solutions
Ludwick Center: replacement of defunct solar PV on roof with new system (18.3 kW,
~30.1 kWh annual production)
Corp Yard: installation of new carport PV system in the parking lot (115.9 kW, ~189.8
MWh annual production)
Police Station: installation of new carport PV system in parking lot (91.5 kW, ~152.6
MWh annual production)
City Hall and Library: Willdan does not recommend installing solar at these locations,
due to insufficient space.
BESS
Ludwick Community Center: Willdan evaluated battery installation. Because the site is
on a tariff without demand charges, BESS does not offer sufficient pay back and is not
recommended
Corp Yard: Willdan recommends installing a 50 kW/204 kWh battery at this site for peak
shaving.
Police Station: Willdan recommends installing a 50 kW/204 kWh battery at this site for
peak shaving.
Swim Center: Willdan recommends installing a 100 kW / 204 kWh battery at this site for
peak shaving.
City Hall: Willdan modeled a battery system at this location, but the BESS battery did not
offer sufficient pay back and is not recommended.
Library: Willdan evaluated battery installation. Because the site is on a tariff without
demand charges, and no solar is proposed, the BESS does not offer sufficient pay back
and is not recommended.
Benefit for SLO
Reduces utility costs
Shades parking in areas where carports are recommended
Annual Savings: $100,600 (Energy)
Desired Solution & Modernization: Willdan modeled solar PV systems at the Corp Yard, Police Station, and Ludwick Center.
Willdan also modeled battery storage for peak shaving at all seven sites in this RFP. Willdan took into account the planned solar
installation at the Swim Center as part of the battery storage sizing exercise, but did NOT include the savings from the Swim Center
solar PV itself in the utility and energy savings presented in this RFP.
Existing Conditions Recommended Solution
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ECM Experience with Similar Customers and Facilities
Client Name City of Dublin, CA
Facility Type Municipal Aquatic Center, Corp Yard, Community Center, and other municipal facilities
Project Scope 1.4 MW solar PV across 10 sites
376 kW BESS and microgrid controls across three sites
Traffic signal battery backup power for resiliency and safety across 22 intersections
Annual Savings $384,000 in year-one savings from renewables and resiliency
Relevance for San Luis Obispo DERs for decarbonization, savings, and resiliency at similar CA municipal facilities
delivered via comprehensive, turnkey project funded by project savings and incentives
ECM 5. Lighting Upgrades at Police Station, City-County Library and Parks and Recreation Offices
Existing Equipment, Site Conditions, etc.
Buildings have
combinations of T8
fluorescent fixtures,
compact fluorescent
lamps, metal halide
fixtures, and sporadic
LED upgrades in
specific locations
Fixtures still have electronic ballasts
Lighting is controlled mostly by switches (existing
occupancy sensors only in restrooms)
Some spaces are over-lit
Lighting Solutions
Full interior retrofit of T8 fixtures to Type B TLEDs
Replace all other fixtures and Can Lights with modern LED
equivalents
Install a new lighting control system and tie into Building
Management System (BMS)
Include occupancy sensors, daylighting, and other capabilities
where appropriate
Benefit for SLO
Saves energy, reduces maintenance, eliminates ballasts
Extends fixture lifetime
Improves light color and provides correct foot candles
Adds capabilities to lighting control system
Annual Savings: $27,400 (Energy) + $2,400 (O&M)
Desired Solution & Modernization: Willdan’s proposed scope for ECM 5 is replacing outdated fluorescent and metal halide light
fixtures with high-efficiency LEDs at the Police Station, City-County Library, and the Parks and Recreation Offices. It will eliminate
ballasts (fewer points of failure), create significant energy savings, and improve overall lighting quality throughout the buildings.
Lastly, the City will have control over selecting the lighting control system and its capabilities to better operate the lighting systems.
Existing Conditions Recommended Solution
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ECM Experience with Similar Customers and Facilities
Client Name California Dept of General Services – Elihu M. Harris State Office Building, Oakland, CA
Facility Type CA state office building open to public
Project Scope LED lighting and controls upgrades for 10,000+ fixtures, including those in the three-story
atrium ceiling
Annual Savings $440,000 in year-one energy and maintenance savings from lighting upgrades
Relevance for San Luis Obispo Lighting upgrades delivered via comprehensive, turnkey energy project funded by project
savings and incentives
Additional Proposed Project Scopes
ECM 6. Swim Center On-Site Chlorine Generation
Existing Equipment, Site
Conditions, etc.
Bulk chlorine is purchased
and stored for pool water
treatment and sanitization
Install on-site chlorine generation system
Uses an electrolytic cell and saltwater to produce sodium
hypochlorite and hypochlorite acid
Benefit for SLO
Eliminates the overland transport and on-site storage of hazardous
materials
Reduces pool treatment chemical costs
Reduces dilution requirements and saves water
Annual Savings: $41,000 (Water) + $115,000 (O&M)
Desired Solution & Modernization: Installation of on-site chlorine generation equipment that will utilize a salt solution and an
electrolysis process to produce sodium hypochlorite and hypochlorite acid for pool treatment.
Existing Conditions Recommended Solution
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ECM 7. Transformer Upgrades
Existing Equipment, Site Conditions, etc.
Swim Center: (1) 75 kVA transformer
located in electrical room
Corp Yard: (1) 30 kVA transformer located
outside electrical room, looks aged
Corp Yard (1) 50 kVA transformer located
inside electrical room
There may be other low-voltage
transformers not seen or detected during
the site visits. Willdan will explore this
measure fully during the IGA.
Recommended Solution
Install new high-efficiency
transformers
Benefit for SLO
Reduces energy losses through the
transformers
Lowers energy costs
Significantly decreases risk of costly,
disruptive power failures
Annual Savings: $4,500 (Energy)
Additional Potential Project Scopes to be Explored in IGA at SLO’s Direction
ECM 8. VFD Pool Pumps Retro-commissioning and Upgrades
Retro-commissioning the existing pool pump variable frequency drives (VFDs) to bring them back online and to their design
specifications. Install VFDs on any remaining pool pumps where they are not currently present. Potential benefits include reduced
utility consumption and reduced O&M costs.
ECM 9. Wastewater Infrastructure Repair
Because SLO operates its own wastewater facility, excess and unplanned water inflow and infiltration into the conveyance systems
increases treatment costs. Evaluate infrastructure including manholes, lift stations, and other wastewater structures for relining and
rehabilitation. Potential benefits include reduced water usage and treatment costs, plus reduced maintenance costs and prevention
of costly infrastructure failures.
Desired Solution & Modernization: Replacement of aging low-voltage transformers with high-efficiency transformers.
Existing Conditions Recommended Solution
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ECM 10. Water Fixture Efficiency Upgrades
Willdan observed standard-flow plumbing fixtures in the restrooms that staff were able to visit. Willdan sees an opportunity for
water efficiency savings by performing retrofits and retro-commissioning on these lavatory faucets and toilet and urinal flush valves.
Over time, flush valves on plumbing fixtures wear down and let through more water than rated for. Performing retro-commissioning
and replacements reduces facility water consumption. Installing aerators and infrared sensors on faucets likewise reduces facility
water usage.
ECM 11. Advanced Irrigation Controls
Networked, intelligent controls for irrigation systems at parks and other SLO facilities can significantly reduce energy and water
consumption as well as O&M costs. Depending on the status of existing irrigation systems, this item may be of interest to SLO for
further exploration during the IGA.
ECM 12. Evaluation of Electrical Infrastructure Upgrades
SLO noted other desired electrification projects that would first likely require upgrades to electrical service and/or electrical
infrastructure. Willdan would holistically evaluate these opportunities and develop upgrade pathways and funding strategies for SLO
to consider.
ECM 13. Wastewater Recovery Facility Biogas to Fuel Cell or Linear Generator
Evaluate the volume and makeup of biogas being produced at the Wastewater Recovery Facility (WWRF) for electricity generation
potential via either a fuel cell or other on-site generating facility. Refinement and utilization of the biogas could increase on-site
WWRF renewable energy generation, plus reduce utility costs and greenhouse gas (GHG) emissions.
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3. Total Life-Cycle Cost Approach
Our engineering team is responsible for all life-cycle cost analyses. Our master planning approach with a vendor-agnostic life-cycle
analysis allows the best individual solutions and also supports an optimal mix of overall project measures. The two key components of
our approach include:
1. Brand-neutral recommendations, which allow us to look beyond 1-for-1 replacements
95%+ of our design-build energy projects include measures with a new, optimized design (e.g., similar to the HVAC life-cycle
in Exhibit 3, where a client changed from a magnetic bearing chiller to a variable-speed centrifugal chiller).
2. Analysis is based on detailed 3D energy modeling, so that the associated life-cycle cost analysis provides savings certainty
early on and, therefore, lower overall project risk (example of our building modeling in Exhibit 4).
99% of our projects meet or exceed the savings guarantee as a result.
Exhibit 3. Total Life-Cycle Cost Analysis Example for Chillers Exhibit 4. Example Detailed Building Energy Modeling
$7,315,120
$6,030,463
$4,398,868 $4,882,499
$0
$2,000,000
$4,000,000
$6,000,000
$8,000,000
25-Year Life-Cycle Cost Comparison
Utility Costs Maintenance Costs Current capital costsA
B
B A
C
C
D
D
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4. Project Schedule
Our estimated IGA delivery schedule is based
on the information and opportunities we know
to date. Our team is already familiar with the
buildings, so upon selection in “Month 0” we
will immediately begin planning and starting
program and preliminary IGA activities. Our
team is confident we can reach a 30% IGA
meeting at the beginning of “Month 2” at the
latest for scope and budget updates/review.
We expect the IGA to be complete in early
“Month 6,” with another month for approval
and contracting. Willdan will also provide a
detailed construction schedule, using Microsoft
Project, on a monthly basis.
76543210IGA Steps by Month
Project Notice to Proceed
IGA: ASHRAE III Audit
Facility and Assets Evaluations
Utilities & Infrastructure Review
Project Programming Meetings
Data Loggers, Utility Analysis, Modeling
Prelim Scopes, Costs, & Savings
Decision -Making Matrix
30% Scope of Work & SD Review & Approval
IGA: Design & Guaranteed Maximum Price
Energy Modeling, Life Cycle Cost , DD Develop.
60% Scope of Work, Budget, and Page Turn
100% Design Drawings and Specifications
Bidding, Implementation Planning, Schedule
Review Final IGA Results
Finalize IGA Based on Comments
Notice to Proceed w/ Construction
IGA: Financing & Funding
Finance , Administration & Committee Meetings
Utility Incentives Analysis & Explore all Options
Funding Workshop w/ City Decision -makers
Refine Options & Agree on Funding Options
Bid Financing via GS $Mart (if applicable)
Financing Terms & Lender Selection
Exhibit 5. Proposed IGA Schedule for the City of San Luis Obispo
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5. Staffing Plan
Key Staff
Willdan has assembled a team of highly skilled professionals, adept at supporting projects with the complexity required for this/these
project(s). In Exhibit 6, we have provided key staff resumes using a condensed resume format due to overall space constraints.
Exhibit 6. Key Staff Resumes and Team Availability
KEY STAFF
Name, Role, Experience Resume Highlights % Available
Carolyn Kiesner Program Director 13 Years of Experience
Leverages successful energy and infrastructure project engineering, implementation, M&V, contracting and project financing. Has completed site-wide energy upgrade projects valued at $225M for 20+ California public agencies and districts. Project experience includes:
Managing turnkey energy projects for the County of Shasta, CDCR Folsom Women’s Prison, El Dorado Union High School District, and the City of Madera
20%
Jason Boyd Program Manager 12 Years of Experience
Possesses extensive experience in the energy industry, running utility energy efficiency and renewable energy programs and delivering comprehensive energy upgrade projects to public agencies. This includes $57M+ in energy projects for public agencies with a focus on developing comprehensive turnkey solutions, incorporating a wide range of energy efficiency, renewable generation, resiliency, and decarbonization. Project experience includes:
Yosemite Unified School District, City of Fairfield, County of Alameda, Oak Harbor Public Schools, Town of Steilacoom, South Kitsap School District, Ocean Beach School District, Green Power Program, and Powerful Neighborhoods Program
50%
Aaron Buys, PE Engineering and Design Director 18 Years of Experience
Has extensive experience in sustainable building design, energy efficiency, and renewable energy. Led design and implementation efforts for $100M+ of performance contracting projects for state and local government, healthcare, higher education, K-12 schools, institutional facilities, and industrial plants. Project experience includes:
Caltrans D1 HQ; Colorado Department of Personnel & Administration Phases 1 & 2; City of South Lake Tahoe; Kaiser Permanente (Various); City of San Diego
50%
Thomas Muñoz, PE Project Development Team Lead 31 Years of Experience
Brings experience and engineering leadership, specializing in energy efficiency and project management. Oversees portfolio building energy management and DERs, with a focus on decarbonization and resilience, and driving innovation and sustainability. Project experience includes:
Alameda County, the Cities of San Diego, South Lake Tahoe, Brisbane, Imperial Beach, and Vallejo
50%
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KEY STAFF
Name, Role, Experience Resume Highlights % Available
Esam Rostom, DBIA Director of Construction 29 Years of Experience
Possesses extensive construction management with turnkey design-build projects. Implemented $450M in design-build construction projects. Manages construction personnel, the client and design team interactions, project buyout, constructability reviews, subcontractors, purchase orders, project controls, and construction quality. Project experience includes:
Caltrans D1 HQ; Sonoma County; City of San Fernando Police Dept.; Escondido Schools; Cities of Escondido, Compton, and Downey
30%
Trevor Hogan Construction Manager 40 Years of Experience
Manages daily operations of each project, ensuring smooth execution from start to finish. Oversees material deliveries, manages RFIs and change orders, upholds quality control standards, ensures accurate scheduling and timely fulfillment of contract obligations. Maintains close communication with clients, prioritizing their satisfaction. Project experience includes:
City of San Fernando - Police Station, Escondido School District, and Yosemite Unified School District
60%
Mark Effinger, PE, CMVP, CEA, CCP Director of Commissioning 18 Years of Experience
Provides direct leadership over Willdan’s Cx team to ensure high-quality project delivery for our clients. Completed 100+ Cx and energy audit projects covering 35M+ sf of facilities. Project experience includes:
City of Dublin; DGS – Elihu Harris State Building, Mission Valley, Van Nuys; Martin Army Community Hospital; State of Oregon; State of Washington; King County WA
30%
ADDITIONAL STAFF
Name Years of Experience Role % Available
Bryan Rossi, PE 8 Lead Mechanical Engineer 50%
Shane Maddox, PE 18 Lead Electrical Engineer 50%
Zoe Warp, CEM 6 Energy Engineer 50%
Ben Laboy, MS, PE 9 DER Team Lead 35%
Zhen Han 30+ Financing Lead 10%
Lou Jacobson 17 Utility Program Coordination Lead 20%
Abe Eustice, MS 13 Construction Manager 50%
Paul Zessau 23 Site Superintendent 75%
Kyle Ehrenzeller 8 Pre-Construction DSA/OSFM/Inspections Lead 20%
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6. Experience in Energy Conservation Projects
Willdan has completed 200,000+ energy conservation projects, including 500+ design-build and/or Energy Savings Performance
Contract (ESPC) projects nationwide. Exhibit 7 summarizes our recent energy conservation projects for public clients in California.
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California DGS IGA, Incentives, Boilers, and Other Energy Services ✓ ✓ ✓ ✓
City of Dublin IGA, Incentives, Solar PV, EV Chargers, Microgrid, EVCS Master Plan ✓ ✓ ✓ ✓ ✓
City of Inglewood EV Fleet Electrification and Public EVCS Infrastructure Master Plan ✓ ✓
City of Fairfield EV Fleet Electrification Master Plan, IGA ✓ ✓
City of Arcadia IGA, Utility Meter Engineering, Civil, and other Energy Services ✓ ✓ ✓
City of Bellflower Energy Grant Application & Reporting, and other Energy Services ✓ ✓ ✓ ✓
City of San Diego IGA, Incentives, and Other Energy Services ✓ ✓ ✓ ✓ ✓
City of Chino Hills IGA, Civil Engineering, and other Energy Services ✓ ✓ ✓ ✓
City of Claremont IGA, Incentives, and other Energy Services ✓ ✓ ✓ ✓ ✓
City of El Segundo IGA, Incentives, and other Energy Services ✓ ✓ ✓ ✓
City of Elk Grove Energy Services, and LED Streetlighting ✓ ✓ ✓ ✓ ✓
City of Lakewood IGA, Incentives, and other Energy Services ✓ ✓ ✓ ✓ ✓
City of Manhattan Beach Energy Services, Solar PV, CCA Support ✓ ✓ ✓ ✓
City of Newport Beach IGA, Incentives, other Energy Services, and LED Streetlighting ✓ ✓ ✓ ✓ ✓
City of Norwalk IGA, Incentives, and other Energy Services ✓ ✓ ✓ ✓ ✓
City of Palm Springs IGA, Incentives, and other Energy Services, and Solar PV ✓ ✓ ✓ ✓ ✓
City of Pico Rivera Energy Grant Application & Reporting, and other Energy Services ✓ ✓ ✓ ✓ ✓
City of Rancho Cucamonga IGA, Incentives, Benchmarking, and Solar PV ✓ ✓ ✓ ✓ ✓
City of Rosemead IGA, Incentives, and other Energy Services ✓ ✓ ✓ ✓ ✓
City of San Francisco Energy Services, Solar PV ✓ ✓ ✓ ✓ ✓
City of Santa Monica Energy Services ✓ ✓
City of South Lake Tahoe Energy Services ✓ ✓ ✓ ✓ ✓
City of Stockton IGA, Incentives, other Energy Services, Design-Build ✓ ✓ ✓ ✓
Exhibit 7. Experience in Energy Conservation Projects
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Proposal for IGA City of San Luis Obispo
Request for Proposal 224691
Pacific Gas and Electric
17
Identify
Subcontractors
Request
Letters of
Interest to
Prequalify
Enter
Subcontractor
Data into
Pantera
Send RFP to
Qualified
Subcontractors
Conduct
Mandatory
Jobsite
Walks
Complete
Bid Review
Review
Recommendations
with Client
7. Experience with Similar Customer and Facility Types
Section 2. Energy Conservation Measures and Scope Details of this response provides detailed project examples, per ECM, from
similar customers and facility types that align with the relevant ECMs identified for SLO. The customers served in these example
projects are California cities and other public agencies with facilities that include municipal swim centers, office buildings, community
centers, and other facilities.
8. Competitive Methodology for Selecting Sub-Contractors
Equipment Competition Process
Because we are 100% vendor-neutral, Willdan works with all qualified manufacturers/vendors to solicit bids on equipment for cost
competition. On average, our equipment competition process saves customers 10%+ on material costs. Our equipment bidding
process leverages a 20+ year relationship with manufacturers and includes:
1. Document Specifications & Requirements: Establish equipment specification and requirements documents
2. Review Submittals and Specifications with Caltrans: Confirm document and consensus on equipment approach
3. RFP to Qualified Equipment Providers: Send RFP and request pricing from qualified manufacturers/vendors
4. Secure Qualified Discounts: Obtain formal equipment price credits (price reductions) in writing to guarantee 10%+ savings on
material costs
5. Obtain Best Value Additions: Require RFP respondents to provide value additions (e.g., history of on-time delivery/supply chain
stability, warranty terms, etc.) in writing
6. Review and Organize RFP Response: Organize qualifying manufacturer RFP responses into an easy-to-read format for the City
to review with us
7. Review Recommendations with City: Include our summary for the City (in addition to access to source files):
i. Best pricing negotiated by the Willdan team, “Good,” “Better,” and “Best” options, explanation of manufacturer resources to
support the RFP, formal proposal details prices and terms for all equipment, submittal binder details all technical attributes and
warranties
Labor Competition Process
Our pre-construction team has decades of experience and is solely focused on the subcontractor bidding and procurement process,
including negotiating best pricing. We use the Pantera software platform to organize subcontractor information, distribute RFPs, and
drive competitive bidding. Pantera offers our clients full transparency throughout bidding. During each project, we follow these tasks:
1 2 3 4 5 6 7
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Proposal for IGA City of San Luis Obispo
Request for Proposal 224691
Pacific Gas and Electric
18
1. Identify Subcontractors: Continue to find local, qualified subcontractors
i. Interview SLO and invite their vetted and approved trade pros to bid
ii. Search online databases for subcontractors, including those with diverse-certified status
iii. Contact known local contractors with a proven track-record on past projects
2. Request Letters of Interest to Prequalify: Obtain contact information and qualifications if
subcontractor is interested in bidding the work
3. Enter Subcontractor Data into Pantera: Input all necessary information, including:
i. A profile for each subcontractor, the profile for each SOW, document RFIs or addendums,
subcontractor pricing
4. Send RFP to Qualified Subcontractors: Provide RFP documents
5. Conduct Mandatory Jobsite Walks: All qualified subcontractors attend walk-through(s) with our
Construction Management Team
6. Complete Bid Review: Perform bid-leveling of subcontractor proposals against the SOW and
meet with subcontractors to resolve ambiguities between scope and proposals
7. Review Recommendations with Client: Review proposals with the City to select best
cost/qualified bidders
Subcontractor Bidding Highlight – Willdan’s Supplier Diversity Program:
We launched our Supplier Diversity Program to partner with and utilize disadvantaged business enterprises (DBEs) to the greatest
extent possible. More information on Willdan’s approach to our Supplier Diversity Program can be found here.
9. Proposed IGA Fee
Our proposed fixed IGA fee for SLO is $0.
We are confident we will deliver the project that SLO is expecting at the completion of the IGA at no cost given our institutional
knowledge of SLO (i.e., city-wide needs, reporting, communication protocol, funding goals, etc.), our expertise in developing and
delivering energy upgrade projects, and our collaborative and iterative process.
Willdan Labor Competition Success
+ 90%+ of our energy
performance contracts use
local subcontractors
+ 20%+ subcontractor labor cost
savings achieved due to
Willdan’s in-house construction
documents providing
contractor clarity in side-by-
side comparison with a
narrative SOW
Diversity
+ To date, Willdan has worked
with 1,500+ diverse
subcontractors across our
energy efficiency projects
Page 712 of 717
Proposal for IGA City of San Luis Obispo
Request for Proposal 224691
Pacific Gas and Electric
19
10. Cost Data
Proposed Project Financial Overview
Willdan’s submission includes the Cost Questionnaire Excel spreadsheet for the proposed project scope. In Exhibit 8, we also
summarize our proposed project cost estimates and associated savings benefits for SLO for ease of reference.
Exhibit 8. Summary of Proposed Project Costs and Savings
ECM Description Annual kWh Saved
Annual Therms Saved
CO2 Savings (metric tons)
Utility Savings Maint. Savings Turnkey Cost Estimate
Estimated Incentives* (one time)
Simple Payback (years)
ECM 1. Swim Center Decarbonization -365,448 83,050 439 $37,100 $0 $4,815,000 $414,450 118.6
ECM 2. City Hall Space Heating Boiler Replacement with Heat Pump
-6,219 4,444 23.5 $6,400 $0 $930,000 $79,900 132.8
ECM 3. Gas-Fired Furnace Replacements -5,908 8,190 43.3 $7,300 $5,000 $790,000 $78,700 57.8
ECM 4. DERs/Peak Shaving 363,100 0 0 $100,600 $0 $3,661,000 $1,098,300 25.5
ECM 5. Lighting Upgrades 93,660 0 0 $27,400 $2,400 $473,000 $20,000 15.2
ECM 6**. On-Site Chlorine Generation 0 0 0 $41,000 $115,000 $1,046,000 0 6.7
ECM 7**. Transformer Upgrades 16,356 0 0 $4,500 $0 $78,000 0 17.3
Totals 95,541 95,684 505.8 $224,300 $122,400 $11,793,000 $1,691,350 29.1
Projects to Explore Further in IGA
During the IGA process, Willdan would like to collaborate with SLO on the potential project scopes highlighted in Section 2 to explore
their viability. These measures were not included as part of our primary project recommendations, as more detailed analysis is
required to vet their potential costs, incentives, and savings for financial feasibility.
*The estimated incentives from PG&E GK12 are dependent on close collaboration between SLO, Willdan, and PG&E to meet program requirements. Additional
incentives may be available and some incentives may have conflicting requirements. Willdan will support SLO from start to finish to maximize project incentives.
**ECMs 6 and 7 are proposed scopes in addition to the required ECMs 1-5.
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Proposal for IGA City of San Luis Obispo
Request for Proposal 224691
Pacific Gas and Electric
20
Table Containing Labor Rates
Exhibit 10 includes the requested labor rates for the job classifications that will be performing the implementation of the project.
Exhibit 10. Hourly Rate Schedule
Page 714 of 717
Proposal for IGA City of San Luis Obispo
Request for Proposal 224691
Pacific Gas and Electric
21
Funding Sources
As one of the nation’s top utility program administrators, Willdan provides utility program support to PG&E, SoCalGas, and 100+ utility
programs nationwide. To date, Willdan has secured $2B+ in financing, including utility rebates and incentives. Our in-house team
tracks guidelines, eligibility, and deadlines for available energy, water, and transportation grants, and Investment Tax Credits (ITCs).
Willdan has worked with 1,200+ state agencies, cities, counties, school districts, and other entities nationwide to address a wide range
of financial needs. Our team preliminarily estimates between $1.6M – $1.7M+ in potential incentives/credits/deduction benefits
to realistically be pursued for the SLO project based on the proposed project scope. In Exhibit 11, we summarize potential funding
sources that can be explored for the desired projects at SLO.
Exhibit 11. Willdan Proposed Funding Mechanisms and Preliminary Projected Amounts for the City of San Luis Obispo
Page 715 of 717
Proposal for IGA City of San Luis Obispo
Request for Proposal 224691
Pacific Gas and Electric
22
Experience with Relevant Funding Programs – PG&E GK12
Willdan currently implements the PG&E Public Sector Government and K-12 (GK12) Energy
Efficiency Program. The GK12 Program was launched in 2021 and is in contract with PG&E
until the end of 2027. GK12 is tasked with providing technical and financial solutions to support
and install energy savings projects with local governments such as San Luis Obispo. Willdan
has served San Luis Obispo previously through the GK12 Program by providing a turnkey
service that delivered $99,780 in incentives and focused on the supporting electrification of
their unitary sized hot water heaters.
Through the GK12 Program, Willdan has evaluated several SLO facilities associated with this
SST solicitation and has verified the City Hall and Swimming Pool Project as eligible for the
program’s fuel substitution (electrification) measures.
Willdan’s integration of the GK12 Program will provide benefits to SLO by providing:
Technical support for CPUC program compliance reporting
Conceptual design
Agency decision making
Direct incentives for eligible upgrades
On-bill financing for eligible projects
Support finding alternative non-IOU and funding and financing
Willdan has previous experience integrating the GK12 Program in the implementation of complex multi-year turnkey projects.
Proof: Willdan combined a turnkey solution with the GK12 Program and Peninsula Clean Energy (PCE) Government Building
Electrification Program to advance the Community Pool Electrification project at the City of Brisbane. GK12 will deliver an incentive
that is estimated to exceed $250k and PCE will deliver an incentive + financing that is expected to be valued at $1.2M.
Proof: Willdan has experience integrating PG&E and SST programming through the County of Sonoma project and secured $90k in
incentives from the PG&E GK12 Program that was passed through to the County.
Financial Capability
$500M+ of Turnkey Projects in CA in Last Five (5) Years
$100M in Bonding Capacity
$700M+ in Secured Grants & Incentives in CA
$2.5B+ in Secured Financing
Page 716 of 717
Willdan Energy Solutions
2401 E Katella Ave # 300
Anaheim, CA 92806
www.willdan.com
Page 717 of 717
Streamlined Implementation for
Lea d by Exa mple Fa cility Retrofits
CITY OF SAN LUIS OBISPO
Authorizing Use of the Sustainable Solutions Turnkey Program
MARCH 4 2025
Solar EV charger at City Hall
Recommendation
1.Adopt a Draft Resolution entitled, “A Resolution of the City Council of the City of
San Luis Obispo, California, making findings on energy savings and authorizing a
Services Agreement with the Pacific Gas and Electric Company pursuant to
California Government Code Section 4217” and thereby approve the use of a
design -build procurement method consistent with Government Code Section 4217;
and
2.Authorize the City Manager to execute a Services Agreement with Pacific Gas and
Electric Company (PG&E) to provide turnkey services for energy conservation
assessments of City facilities and installation of energy conservation measures; and
3.Authorize the City Manager to execute a Work Order for an Investment Grade Audit
for the Municipal Facility Energy System Retrofit Project.
2
FleetBuildings a nd
Fa cility Energy
GOAL
Eliminate fossil fuel use in
buildings and facilities
LEAD BY EXAMPLE SECTOR
3
TOTAL EMISSIONS BY SECTOR IN 2022
Building &
Facility Energy
Fleet
Employee
Commute
Solid
Waste
Wastewater
Natural
Solutions-500
0
500
1,000
1,500
2,000
2,500
3,000
MT
C
O
2
e
ENERGY 2.1 – Implement electrification projects at
the (1) Swim Center, (2) Ludwick, (3) Corp Yard,
(4) City Hall through PG&E’s Sustainable Solutions
Turnkey Program (Admin, PW)
2025 -29 WORK PROGRAM ACTION
Sustainable Solutions Turnkey Program
4
•PG&E offers a procurement and delivery approach that minimizes staff burden
and enables accelerated implementation.
•As allowed under Government Code Section 4217.10, participating in the SST
program would enable the City to contract directly with PG&E, who would
manage procurement and contracting and serve as the City’s/owner’s
representative throughout a design build process with a selected Energy
Services Company (ESCO).
•The City participated in the SST program to support Utilities Department energy
efficiency projects in 2012 and 2018. Utilities staff recommended the program
for the Priority Lead by Example Energy Projects.
Sustainable Solutions Turnkey Program
5
Feasibility Discussion
& Project Initiation
PG&E
Runs
RFP
Contracting &
Investment Grade
Audit Work Order
PG&E
Completes
IGA
Funding &
Financing
Project
Implementation
& Evaluation
Step 1: The City completed a feasibility discussion & project initiation with PG&E
Step 2: PG&E ran an RFP for the City and selected Willdan as the preferred vendor
Step 3: Governing body adopts findings on cost savings and authorizes PG&E Services Agreement and
Investment Grade Audit (IGA) Work Order
Step 4: PG&E serves as the City’s owners rep through the IGA process
Step 5: PG&E & Willdan present funding & financing plan based on City resources
Step 6: Staff return to City Council with results of IGA to decide on implementation approach and timing
Next Steps
6
1.Participate in the development of the Investment Grade Audit
(estimated completion Fall of 2025) and return to Council with
detailed project information
2.Staff will return to Council with the results of the Investment
Grade Audit and a recommendation on whether to move
forward with implementation through the SST program
Solar EV charger at City Hall
Recommendation
7
1.Adopt a Draft Resolution entitled, “A Resolution of the City Council of the City of
San Luis Obispo, California, making findings on energy savings and authorizing a
Services Agreement with the Pacific Gas and Electric Company pursuant to
California Government Code Section 4217” and thereby approve the use of a
design -build procurement method consistent with Government Code Section 4217;
and
2.Authorize the City Manager to execute a Services Agreement with Pacific Gas and
Electric Company (PG&E) to provide turnkey services for energy conservation
assessments of City facilities and installation of energy conservation measures; and
3.Authorize the City Manager to execute a Work Order for an Investment Grade Audit
for the Municipal Facility Energy System Retrofit Project.
APPENDIX