HomeMy WebLinkAboutCentrica_Response_to_the_City_of_San_Luis_Obisbo_RFP224691City of San Luis Obispo – Investment Grade Audit RFP 1
City of San Luis Obispo, California
RESPONSE TO REQUEST FOR PROPOSAL
Investment Grade Audit
Request for Proposal #224691
SUBMITTED DECEMBER 20, 2024
POINT OF CONTACT
Brooklyn Stewart, Senior Account Executive
916-860-9032
brooklyn.stewart@centrica.com
333 S. Anita Drive
Orange, California 92868
City of San Luis Obispo – Investment Grade Audit RFP ii
TABLE OF CONTENTS
Executive Summary ................................................................................................................................................................................................................ 1
PROJECT OVERVIEW .............................................................................................................................................................................................................................................. 1
Figure 1: Centrica’s proposed Scope 1 (Gas) and Scope 2 (Electric) emission savings helps SLO reach a 49% Total
Emissions Baseline Savings. .............................................................................................................................................................. 1 SUSTAINABILITY IMPACT ...................................................................................................................................................................................................................................... 2
Figure 2: Sustainability Waterfall Chart ............................................................................................................................................. 2 BEST VALUE TO SLO ............................................................................................................................................................................................................................................... 3 Maximizing Incentives .................................................................................................................................................................................................... 3
WHY SAN LUIS OBISPO SHOULD PARTNER WITH CENTRICA ................................................................................................................................................................... 4 Our Project Approach ............................................................................................................................................................................................................. 5
INTRODUCTION TO OUR OVERALL PROJECT APPROACH .......................................................................................................................................................................... 5
Figure 3: Centrica’s High-Level Project Approach .......................................................................................................................... 5 APPROACH TO ENERGY AUDITS ........................................................................................................................................................................................................................ 5
Figure 4: Four Main Phases of the IGA Process ............................................................................................................................... 6 SUMMARY OF PROJECT MANAGEMENT APPROACH AND PROCESS ..................................................................................................................................................... 7
PROJECT TIMELINE AND MAJOR MILESTONES ............................................................................................................................................................................................. 7
Figure 5: Centrica’s Project Timeline for SLO .................................................................................................................................. 7 COMMUNICATION AND COLLABORATION WITH SLO PERSONNEL ........................................................................................................................................................ 8 INSPECTION AND PERMITTING .......................................................................................................................................................................................................................... 8 PROJECT CLOSEOUT AND COMMISSIONING ................................................................................................................................................................................................. 9 OPERATIONS, MONITORING, AND MAINTENANCE ...................................................................................................................................................................................... 9
Figure 6: A visual representation of Centrica’s monitored sites in California .............................................................................. 9 Your Project Team ................................................................................................................................................................................................................. 10
OVERALL PROJECT LEADERSHIP ..................................................................................................................................................................................................................... 10
Figure 7: Centrica’s Project Team dedicated to partner with SLO throughout the project lifecycle. ...................................... 10 Trevor Nelson, PE, LEED AP, CEM, CCP, CMVP ..................................................................................................................................................... 11 Brooklyn Stewart ........................................................................................................................................................................................................... 11
ENGINEERING AND DEVELOPMENT TEAM ................................................................................................................................................................................................. 11 Brett Watson ................................................................................................................................................................................................................... 11 Mike Kostrzewa, PE ....................................................................................................................................................................................................... 11 Jason Core ......................................................................................................................................................................................................................... 12 Antonio Dennis ............................................................................................................................................................................................................... 12 Trevor Jackson ................................................................................................................................................................................................................. 12 Michel Maxsom .............................................................................................................................................................................................................. 12 Donna Krebs .................................................................................................................................................................................................................... 13
Figure 8: Centrica Team Member Percentage of Commitment to SLO. ...................................................................................... 13 DIVERSE SUBCONTRACTOR/VENDOR SELECTION ................................................................................................................................................................................... 13
Figure 9: Subcontractors in Good Standing with Centric’a Pre-Approved Subcontractor Network in California ................. 14 Anticipated Energy Conservation Measures................................................................................................................................................................. 15
Figure 10: Proposed Energy Conservation Measures for the City of San Luis Obispo demonstrating overall emissions
and savings. ........................................................................................................................................................................................ 15 CITY HALL ............................................................................................................................................................................................................................................................... 15 Energy Conservation Measures: Heat Pump Boiler Replacement .............................................................................................................. 15 Energy Conservation Measure: Battery Energy Storage System ................................................................................................................ 15
SWIM CENTER ...................................................................................................................................................................................................................................................... 16 Energy Conservation Measure: Heat Pump Boiler Replacement – Competition Pool ........................................................................ 16 Energy Conservation Measure: 188 kW DC Carport PV and 186 kWh BESS .......................................................................................... 16 Energy Conservation Measure: Transformer Update ....................................................................................................................................... 16
LUDWICK RECREATION CENTER ..................................................................................................................................................................................................................... 16 Energy Conservation Measure: Heat Pump Rooftop Units and Furnace ................................................................................................. 16 Energy Conservation Measure: Battery Energy Storage System ................................................................................................................ 17
CORPORATION YARD .......................................................................................................................................................................................................................................... 17 Energy Conservation Measures: Heat Pump Furnaces ................................................................................................................................... 17 Energy Conservation Measure: Heat Pump Hot Water System ................................................................................................................... 17 Energy Conservation Measure: Transformer Update ....................................................................................................................................... 17 Energy Conservation Measure: Battery Energy Storage System ................................................................................................................ 17
POLICE STATION ................................................................................................................................................................................................................................................... 17 Energy Conservation Measure: LED Lighting ...................................................................................................................................................... 17
City of San Luis Obispo – Investment Grade Audit RFP iii
Figure 11: These are the baseline LED fixtures, power ratings, and fixture counts. ................................................................. 18
Figure 12: These are Centrica’s proposed LED fixtures, power ratings and fixture count for the Police Station. ................ 18 Energy Conservation Measure: Battery Energy Storage System ................................................................................................................ 18 CITY/COUNTY LIBRARY ...................................................................................................................................................................................................................................... 18 Energy Conservation Measure: LED Lighting ...................................................................................................................................................... 18
Figure 13: These are the baseline LED fixtures, power ratings, and fixture counts. ................................................................. 19
Figure 14: These are Centrica’s proposed LED fixtures, power ratings and fixture count for the Library. ............................ 19 PARKS AND RECREATION OFFICE ................................................................................................................................................................................................................... 19 Energy Conservation Measure: LED Lighting ...................................................................................................................................................... 19
WHALE ROCK RESERVOIR PUMPING STATION NO. 2 ............................................................................................................................................................................... 19 Energy Conservation Measure: 636.3 kW DC Ground-Mount PV ................................................................................................................ 19 PARKING GARAGE CARPORT SOLAR PV FOR THE MARSH STREET AND NEW PALM STREET PARKING GARAGES .............................................................. 19 Energy Conservation Measure: Carport Solar PV .............................................................................................................................................. 19 END-OF LIFE LED STREET LIGHTING REPLACEMENTS ............................................................................................................................................................................. 20
Energy Conservation Measure: End-of-Life LED Replacements .................................................................................................................. 20
DAMON-GARCIA PARK AND SPORTS COMPLEX ATHLETIC FIELD LIGHTING AND CARPORT PV ................................................................................................ 20 Energy Conservation Measures: Athletic Field LED Lighting and Carport Solar PV with BESS ....................................................... 20 ADDITIONAL UTILITY SAVINGS MEASURES ................................................................................................................................................................................................. 20 Prior Experience with ECMs ............................................................................................................................................................................................... 21
Funding .................................................................................................................................................................................................................................... 22
FUNDING OPTIONS INCLUDING INCENTIVES/ASSUMPTIONS ............................................................................................................................................................... 22
Figure 15: Various funding options available to SLO. ................................................................................................................... 22 Enterprise Fund – Option for Expansion of Impact .......................................................................................................................................... 23 City of Cloverdale Example ........................................................................................................................................................................................ 23 INFLATION REDUCTION ACT – INVESTMENT TAX CREDIT BENEFIT .................................................................................................................................................... 23 Experience with Similar Customers ................................................................................................................................................................................ 24
CITY OF CLOVERDALE ......................................................................................................................................................................................................................................... 24 CALIFORNIA DEPARTMENT OF MOTOR VEHICLES .................................................................................................................................................................................... 25 FONTANA UNIFIED SCHOOL DISTRICT .......................................................................................................................................................................................................... 26
COAST UNIFIED SCHOOL DISTRICT ................................................................................................................................................................................................................ 27
CITY OF REEDLEY ................................................................................................................................................................................................................................................. 28 Safety, Diversity, and Sustainability ............................................................................................................................................................................... 29
SAFETY .................................................................................................................................................................................................................................................................... 29 Site-Specific Safety Plan ............................................................................................................................................................................................ 29 Site Utilization Plan ...................................................................................................................................................................................................... 29 Site Safety Inspection Report ................................................................................................................................................................................... 29 Safety Observation Program ..................................................................................................................................................................................... 29
Pricing Factors and Labor Rates ....................................................................................................................................................................................... 30
CENTRICA’S LABOR RATES FOR ALL JOB CLASSIFICATIONS ................................................................................................................................................................... 30
Figure 16: Proposed Overhead and Profit on Internal Labor Rates ............................................................................................. 30
Figure 17: Labor Rates ....................................................................................................................................................................... 30
City of San Luis Obispo – Investment Grade Audit RFP 1
Executive Summary
Centrica Business Solutions Services, Inc. (“Centrica”) is excited to apply our extensive experience
specific to the intricacies of the City of San Luis Obispo, California (“SLO”) infrastructure and de-
carbonization projects to the benefit of the City. As you will see unfolding in this report, our team’s
experience encompasses multiple California Municipalities, Special Districts, and State Agencies
along with the successful execution of several hundred energy projects throughout many years,
experience that will directly compliment SLO efforts to de-carbonize energy use at its facilities.
This proposal presents details specific to the team assigned to SLO, our approach to energy auditing
and maximizing savings while minimizing costs through all available incentive programs and tax
rebates, and our actual projections for what can ultimately be achieved for this site.
PROJECT OVERVIEW
Based on the objectives detailed in the SLO Scope of Work, we believe the stated initiatives to
reduce energy consumption, energy costs, greenhouse gas emissions are viable, and the goals set
forth in SLO’s Climate Action Lead by Example plan can be achieved utilizing PG&E’s SST program
and partnership with Centrica. To aid in this process and realization of SLO goals, we will identify and
maximize the value of all available rebates, incentives, and programs.
Centrica is pleased to respond to the Pacific Gas & Electric (“PG&E”) RFP specific to the unique
facility improvements needed for SLO. We are providing this report to summarize our findings and
solutions derived from listening intently to on-site staff, adhering to the goals and objectives put forth
in the PG&E RFP and the on-site audit. The following summarizes our findings for SLO facilities, with
savings relative to goal for decarbonization.
Figure 1: Centrica’s proposed Scope 1 (Gas) and Scope 2 (Electric) emission savings helps SLO reach a 49% Total
Emissions Baseline Savings.
SCOPE 1 GAS
EMISSION SAVINGS 440.7 MT
CO2-e/yr
SCOPE 2 ELECTRIC
EMISSION SAVINGS 45.5 MT
CO2-e/yr
SLO’s TOTAL
EMISSION SAVINGS 49%
City of San Luis Obispo – Investment Grade Audit RFP 2
Based on SLO’s facility needs, priorities, and direction, Centrica is fully prepared to execute all
measures put forth in this response, or any combination (small/medium/large) thereof.
SUSTAINABILITY IMPACT
Centrica is pleased to present a project to SLO that significantly moves the needle on
decarbonization goals. The initial project identified by the team projects Scope 1 (gas) emission
savings of 440.7 MT CO2-e/yr and Scope 2 (electric) emissions savings of 48.0 MT/yr (488.7
MT/yr total) compared to the current building baseline of 990.5 MT/yr. This 49.3% reduction
provides a jump start in achieving your short and long-term sustainability goals. The figure
below highlights how the recommended measures contribute to the overall carbon reduction from
your current levels.
Figure 2: This waterfall chart shows the current baseline emissions for gas and electricity of 990.5
MT on the left and proposed emissions savings subtracted from the total to the right. In Orange
are the locations with Heat Pump measures, Solar PV and BESS in Gold, Solar Thermal at the
Swim Center in Blue, and LED Lighting/Transformers in Green. The Swim Center has the largest
emission savings: 299.5 MT. The measures with the largest reductions are Heat Pumps (231.9 MT
total) and Solar PV/BESS (131.5 MT).
449.3
541.2
-16.2
-181.4 -43.6 -73.0 -4.7 -29.6 -19.9 -2.5
0.6
-87.9 -30.5
Me
t
r
i
c
T
o
n
s
C
O
2
e
0.0
200.0
400.0
600.0
800.0
1,000.0
1,200.0
Carbon Reduction Pathway
City of San Luis Obispo – Investment Grade Audit RFP 3
BEST VALUE TO SLO
We are invested in providing the most comprehensive project that meets the overall needs of SLO.
To do this it is essential to maximize all available incentives, grants, and revenue generating
opportunities while minimizing project costs. We have the right teams to deliver for SLO on both
fronts.
We are proposing to conduct the IGA at no cost to the City. We believe the opportunity to show-
case our team’s abilities at no cost through the IGA will provide the most opportunity to the City to
implement measures that will drive toward its goals.
Maximizing Incentives
Investment Tax Credit: The solar and battery storage project as proposed by the team
qualifies for significant incentives through the Inflation Reduction Act (IRA). With the base
Investment Tax Credit and potential adders, the total for this project is nearly $1.5M,
providing a significant positive impact for the cashflow of the project. Details on the IRA and
our calculations are provided in the Funding Section beginning on Page 22.
Demand Response: Centrica is excited to support SLO’s Demand Response (DR) focus and
strategies. Battery energy storage systems can be deployed to create a revenue stream for the
overall project. Centrica will work with the SLO’s identified DR partner to monetize the battery.
If the City does not have a preferred partner, we will work with our bench of partners to model
options for market participation - for example through PG&E’s Measured Savings for Summer
Reliability (MSSR) Program.
Providing Best Value through Self-Performance
As a significant benefit to SLO, our approach is different from many of our competitors as we self-
perform most of our projects’ auditing, engineering, project management, installation, and
commissioning tasks which avoids multiple markups. We provide subject matter experts, in-
house engineering, and electrical installation teams to develop/implement solar PV, LED lighting,
battery storage, EV chargers, building controls, transformer replacements, and recommissioning
existing systems to restore building controls to their intended functionality.
This will allow SLO to make the most of this opportunity on several levels:
Cost: fewer subs equal fewer tiers of profit and overhead mark-up resulting in a 20-35%
reduction in costs for critical measures allowing for additional electrification measures
to reduce carbon emitting systems.
Time: fewer parties involved for more efficient delivery of milestones.
Absolute accountability every step of the way.
City of San Luis Obispo – Investment Grade Audit RFP 4
WHY SAN LUIS OBISPO SHOULD PARTNER WITH CENTRICA
Once Centrica is selected to advance to the Investment Grade Audit (IGA) portion of your project,
SLO will greatly benefit from our ability to self- perform multi-measure comprehensive installations,
allowing you to avoid costly subcontractor mark-ups.
We are excited that our initial project checks all the boxes in meeting or exceeding SLO’s
overarching targets:
Reduces Energy Consumption in
City Owned Buildings
Your project saves over 1M kWh and 80k therms
in energy usage in Year-Over-Year energy
usage through upgrading to more efficient
technologies and overlaying with renewable energy
where possible.
Provides significant carbon
reduction in existing building on-
site emissions
Your project delivers a 49.3% reduction in existing
building emissions
Equitable implementation of
SLOs Climate Action Lead by
Example Plan
By employing a team local to SLO, we are
directly impacting your community. In addition, for
measures we do not self-install, we strive to
select local subcontractors to keep the
economic benefits of the project local to the
community.
100% green energy We have identified 305.7 kWDC of solar PV
located at 4 sites, contributing to 12% of SLO goal
for achieving 100% green energy utilization. There
is opportunity to add 636.3 kW in additional solar,
further contributing 34% if SLO is interested in
including Enterprise Fund opportunities.
Maximizes Incentives Your project collects nearly $1.5M in incentives
and IRA tax credits.
Provides an option to expand the
impact of the project
Your project could include other sites for solar,
including Whale Rock Pumping Stations #2, which
would by itself deliver $248k in annual utility
savings and an 80.1% reduction in current
building emissions, as well as help finance other
measures that would be more difficult to do so on
their own.
Embracing renewable energy and more efficient buildings is not just a strategic business decision; it
is a commitment to a sustainable future, and we commend SLO for making such an important
decision. By partnering in this effort together, Centrica will leverage our strengths to SLO’s
advantage, focusing on innovation, collaboration, and driving positive change for your
community.
City of San Luis Obispo – Investment Grade Audit RFP 5
Our Project Approach
INTRODUCTION TO OUR OVERALL PROJECT APPROACH
During the bidding process, we learned that SLO aims to achieve sustainability targets through an
economically responsible manner. This is possible with advancements in infrastructure technology
and current incentives, obtaining economic returns with lower energy, and utility use.
Certain energy measures such as electrifying old, packaged gas/electric HVAC units to heat pumps
are pivotal to decarbonization efforts but can be challenging when also trying to attain attractive
economic paybacks. However, other measures such as lighting upgrades and solar photovoltaic
systems offer much more valuable paybacks. By combining quicker and longer payback
measures together, we can deliver a comprehensive integrated project for SLO that helps
produce a balanced approach to solving infrastructure needs and financial goals, whether
paid through financing mechanisms or capital expenditure. We have also seen value in past
municipal projects where Enterprise Fund measures have been extremely helpful when
financing together with General Fund measures to achieve city-wide goals. We think there is
ample opportunity for SLO to achieve this as well.
Figure 3: Centrica’s high-level overview of our project approach which is discussed in more detail
throughout multiple subsequent sections.
APPROACH TO ENERGY AUDITS
Our team will thoroughly examine all relevant measures to renew your infrastructure, reduce carbon
emissions, and prioritize climate resilience. We collaborate fully with stakeholders to support specific
sustainability goals while including critical deferred maintenance priorities in the comprehensive
project scope.
To present the “Good,” “Better,” and “Best” scenarios to SLO, the Development and Engineering
team develops a project-specific Integrated Solutions Workbook. This highly customizable, Excel-
based interface captures the costs, savings, payback, and carbon emission reductions for each ECM
proposed. The tool allows our combined team to “toggle” measures on and off to see how they affect
the overall economics, carbon reduction, and cashflow of the project to help make decisions on which
solutions to include in the final project scope as a whole or as part of a phased approach.
We also understand the mission-critical work SLO carries out daily for its citizens and the importance
of its facilities. We pledge to collaborate directly with SLO personnel to maintain the look and
feel of each site while implementing enhancements and upgrades where applicable. To achieve
these goals, our IGA development team will follow a tactical plan with four main steps represented
below. Our process begins with discussions with key stakeholders to understand your goals and
Examine
Energy
Consumption
Identify
Optimization
and
Deferred
Maintenance
O
Collaborate
and
Design
Customized
Integrate
Financing
Options
Implement
Sustainable
Ongoing
Monitoring
and
Maintenance
City of San Luis Obispo – Investment Grade Audit RFP 6
objectives and to develop a plan for auditing buildings on an active work site while minimizing
disruption to daily activities.
Figure 4: The following highlights the four main phases of the IGA process and provides a
summary of our audit process and the required involvement from SLO.
45% IGA
Development
Identification of all
potential ECMs and
Renewables
Preliminary Cost,
Savings, & Carbon
Reduction Numbers
Identification of
potential
incentives/grants/reb
ates
Preliminary
Cashflows
Preliminary Good,
Better, Best
Discussions
SLO’s Role
Availability of key
stakeholders for
review
Toggling tool review
and scope
discussions
Decisions on scope
for final development
90% IGA
Development
Schematic design
drawings
Walk sub-contractors
Finalize savings
calculations
Life-Cycle Cost
Analysis
Structural/geo-
technical reviews for
renewables, if
applicable
Detailed “Good,
Better, Best”
discussions, and
decisions
Final costing for each
proposed measure
Proposed M&V
protocol by ECM
Review of various
financing approaches
SLO’s Role
Access and escorts to
walk sub-contractors
Availability of key
stakeholders for IGA
and Toggling Tool
review
Decisions on final
scope to move to
contract and
construction
-
IGA
Delivery
IGA Finalized
Detailed SOW
M&V Plan
O&M Plan
Training Plan
Financing Plan
SLO’s Role
Key stakeholders
for IGA review
Contract Review
Final Sign-Off
Data
Collection
24-36 months of
utility bills and rates
Building square
footages
Equipment lists
Historical O&M
costs
Control system
access
Desired standards
of comfort
Occupancy data
Events and holiday
calendar
Building/Structural
Drawings
Source fuel mix for
carbon calculations
Fire Escape Plan
SLO’s Role
Access to data,
buildings, and key
personnel
Review of utility
baselines and
proposed utility
escalations
City of San Luis Obispo – Investment Grade Audit RFP 7
SUMMARY OF PROJECT MANAGEMENT APPROACH AND PROCESS
Like our IGA process, Centrica will create a project management plan and approach that is
tailored to the specific needs of your SLO sites. The unique needs of this project coupled with
Centrica’s extensive municipal experience bodes well for a promising result that addresses all
of SLO’s desired outcomes. Our collaborative efforts will result in a construction plan which avoids
disruption and delivers a comprehensive solution on schedule and within budget.
PROJECT TIMELINE AND MAJOR MILESTONES
PROJECT SCHEDULE WITH MILESTONES AND SLO REVIEW PERIODS
Task/Milestone Start End Workdays Deliverable
1 Selection of Preferred Firm
and Contracting
12/20/2024 1/10/2025 15 -
2 Investment Grade Audit 1/10/2025 7/31/2025 145 -
2.1 Collect Additional Utility Bills,
Drawings, Data, etc.
1/10/2025 2/7/2025 19 -
2.2 Comprehensive Site Walk 2/10/2025 2/14/2025 4 -
2.3 ECM Determination & Savings
Calculations
2/18/2025 3/20/2025 22 -
2.4 Presentation of 45% IGA/Toggle
Session
3/21/2025 3/21/2025 0 Presentation
2.5 Subcontractor RFP/ RFQ
Process
3/24/2025 5/12/2025 34 -
2.6 Subcontractor Site Walks 5/13/2025 5/16/2025 3 -
2.7 Revise & Finalize Energy
Calculations
3/24/2025 4/14/2025 14 -
2.8 Finalize Material & Labor Pricing 5/19/2025 6/20/2025 23 -
2.9 Presentation of 90% IGA: Final
Toggle Session
6/20/2025 6/20/2025 0 -
2.10 Complete IGA Report 6/23/2025 7/11 /2025 13
2.11 Deliver IGA Report 7/11 /2025 7/11 /2025 0 IGA Report
2.12 Customer Review of IGA Report
& Recommendations
7/11 /2025 7/31/2025 14 -
3 Negotiation of Energy
Performance Contract
8/1/2025 9/15/2025 30 -
3.1 Execute Energy Performance
Contract
8/1/2025 9/15/2025 30 Executed
Contract
4 Construction 9/16/2025 4/5/2027 390 -
5
Closeout (O&M Training,
Punch List Completion,
Warranty Documentation, etc.)
TBD TBD TBD Customer
Binder
6 Measurement and Verification
(Performance Assurance) TBD TBD TBD Annual M&V
Report
Figure 5: Centrica’s Project Timeline for SLO
City of San Luis Obispo – Investment Grade Audit RFP 8
COMMUNICATION AND COLLABORATION WITH SLO PERSONNEL
This is SLO’s site and therefore your project. That is to say the priorities and pain points
expressed by on-site staff, coupled with the identified infrastructure upgrades needed will
ultimately dictate the Scope of Work. Centrica adheres to the critical path model of project
management to plan and execute projects in the best interest of our clients as efficiently and
effectively as possible.
During construction, the Project Management Team will prepare weekly reports for SLO and the
entire project team, showing actual versus planned progress. These reports highlight where the
project is in the process, the reasons for any variance, whether we are ahead or behind schedule. If
we are behind or anticipate a potential to fall behind, the weekly report will identify actions needed to
prevent or remedy the delay.
In addition to weekly reports and tracking progress against the overall schedule, the Project
Management Team issues a Two-Week Look Ahead each week with detailed plans and tasks to
facilitate coordination. When working in congested or mission-critical customer areas requiring close
coordination this Look-Ahead progress planning can be iterated down to Day-Ahead or Intra-
Day/Half-Day Look-Ahead Schedules. This detailed planning and active communication promotes
schedule adherence, eliminates unnecessary delays and, most importantly, minimizes disruptions to
day-to-day operations.
INSPECTION AND PERMITTING
It is Centrica’s responsibility to ensure all jurisdictions have approved scope, engineering, and
drawings through the design and construction lifecycle. Critical components of permitting and
inspections are as follows:
City or County approval for roof mounted solar arrays to be installed on “critical infrastructure.”
Emergency Egress lighting for interior lighting retrofits.
State Fire Marshal inspections.
Utility inspections.
Centrica has significant experience in working with various applicable AHJ’s and State Fire Marshal.
Example client projects include:
Department of Motor Vehicles Headquarters
Fontana Unified School District
Coast Unified School District
City of Cloverdale
City of Elk Grove
Centrica greatly values the support we have received from on-site facility staff, the SLO Sustainability
Team, and PG&E SST. We look forward to earning the right to expand our partnership to the design-
build implementation phase of this significant decarbonization and infrastructure upgrade project with
a keen eye on SLO’s goals.
City of San Luis Obispo – Investment Grade Audit RFP 9
PROJECT CLOSEOUT AND COMMISSIONING
The project closeout and commissioning effort is broken down into four phases: Design, Construction,
Performance, and Post Occupancy. Centrica utilizes a technical approach to project closeout and
commissioning, not just a report process. We use a combination of internal resources, our
subcontractors, and vendors to commission the installed systems. Centrica will work with our
equipment manufacturers to operate their installed equipment and perform factory start-ups as
required per the project specifications.
OPERATIONS, MONITORING, AND MAINTENANCE
According to SLO’s specific needs, Centrica will develop comprehensive
strategies for operating, monitoring, and maintaining your energy systems. This
starts during the IGA phase as the ECMs are being finalized where SLO
personnel will help us understand the bandwidth and capabilities of your
facilities and staff. We are happy to take on as much or as little of the ongoing
services as you need.
What is envisioned for this project will result in some combination of the
following:
SLO staff trained by Centrica and the material manufacturers for all
measures/ systems installed.
Monitoring platforms set up by Centrica that SLO’s staff can use to check
performance. This can be actively monitored by either SLO or Centrica
personnel.
Annual system checks for HVAC, EV, Solar PV Installations, and other
measures may be performed by either SLO staff, contractors managed
by SLO Management, or fully managed by Centrica.
Figure 6: A visual
representation of
Centrica’s
monitored sites in
California
City of San Luis Obispo – Investment Grade Audit RFP 10
Your Project Team
In support of your project, the Centrica team leading this effort brings an industry strong combined
100+ years of experience in design-build projects, with a keen focus on energy-efficiency and
infrastructure upgrade projects for government buildings. Our unwavering commitment to excellence
and a balance sheet exceeding $33B of executed projects looks to serve SLO exceptionally well.
Figure 7: Centrica’s Project Team dedicated to partner with SLO throughout the
project lifecycle.
Brooklyn Stewart
Senior Account Executive
PRIMARY POINT OF
CONTACT
Dan Mitchell
Sales Leader, West
Trevor Nelson, PE
General Manager, West
Centrica Business
Solutions Services, Inc.
Implementation Team Post-Implementation
Team
Project Development
Team
Trevor Jackson
Operations Manager
Michel Maxsom
Senior Project Manager
Donna Krebs
Assistant Project
Manager
Site Superintendent and
Site Technicians TBD
Performance Assurance
Steve Rickels
M&V Manager
Service and Maintenance
Steve Hess
Asset Manager
Health and Safety
Bill Pollard
Safety Manager
Brett Watson
Regional Project Director
Mike Kostrzewa
Engineering Team Lead
Eugene Hong
Electrical Solutions
Engineer
Antonio Dennis
Energy Engineer III
Centrica Subcontractors and Vendors
City of San Luis Obispo – Investment Grade Audit RFP 11
OVERALL PROJECT LEADERSHIP
Trevor Nelson, PE, LEED AP, CEM, CCP, CMVP
General Manager, West Business Unit
As a Cal Poly alumnus, Trevor has personal connection with the SLO community, and will be
responsible for contract negotiations, final review, approval of scope and costing, and ensuring that all
staff members have the tools and resources needed to deliver a safe, on-time, and cost-effective
project that we can all be proud of. Trevor has worked on the engineering and overseeing
construction for similar multi-measure energy projects for the California DMV, UC San Diego, UC
Irvine, City of Reedley, Montefiore Hospital at the University of Pittsburgh Medical Center, and several
facilities for the University of British Columbia.
Brooklyn Stewart
Senior Account Executive, West Business Unit
As the Senior Account Executive, Brooklyn will serve as SLO’s primary contact during all project
phases. He will play an instrumental role between SLO and Centrica to ensure consistent
communication plans are executed throughout the project. In addition, he will lead efforts in scope
and funding development and progress the community outreach plan. Over the past 15 years,
Brooklyn has worked closely with several large California municipal, state, K-12, higher education,
and California special district clients, assisting them in program development, funding, and
implementation. His recent projects include working with some of SLO’s neighboring communities
along the central coast, like Coast Unified School District and UC Santa Cruz, as well as the City of
Cloverdale, UC Davis, California DMV, California Department of Justice, Cambrian School District,
and Auburn Rec & Park District.
ENGINEERING AND DEVELOPMENT TEAM
Brett Watson
Regional Project Director, West Business Unit
Also a Cal Poly alum, as the Regional Project Director, Brett will lead the project development and
engineering teams during the project development phase. He uses his professional, technical, and
construction experience to ensure accurate utility bill analysis, benchmarking, scope of work
development, energy savings calculations, energy modeling, and utility rebates/incentive analysis.
Brett has led teams to develop similar projects at the City of Lynwood, Orange Coast College, River
Springs Charter School District, Valley Wide Rec & Park District, and Glendale Community College.
Mike Kostrzewa, PE
Senior Energy Engineer
Mike is an expert in energy efficiency and sustainability with 40 years of experience. He is
responsible for energy engineering from concept to construction. He applies his extensive experience
when completing utility bill analysis, preliminary feasibility assessments, investment grade audits,
energy savings calculations, incentive identification, cost analysis, and measurement and verification
for comprehensive energy performance contract projects. Mike has led the engineering development
for similar projects at the California DMV.
City of San Luis Obispo – Investment Grade Audit RFP 12
Jason Core
Solar and Storage Project Director, West Business Unit
Jason leads our solar and storage project development team for the West Coast and will be
overseeing the analysis, design, engineering, and estimating for this project. Utilizing his 25+ years of
experience in engineering and construction management, along with his nine years of experience
managing solar projects, he will be able to develop the best possible solutions for the needs of SLO.
He has developed and managed over 100 similar commercial solar projects, such as the cities of Elk
Grove and Cloverdale, Merced Community College District, and Contra Costa Community College
District.
Antonio Dennis
Energy Engineer III, West Business Unit
Antonio plays a pivotal role in Centrica’s strategic implementation of renewable energy solutions. He
is adept at evaluating opportunities to reduce both capital and operating expenses, while effectively
communicating energy requirements to internal and external stakeholders. Antonio excels in
managing relationships with cross-functional partners, including utilities, regulators, and
policymakers. He coordinates closely with design teams to assess measure feasibility, develop the
basis of design, and scope of work.
Trevor Jackson
Operations Manager, West Business Unit
Trevor manages all Operations and Project Managers in the West Business Unit and develops
regional Project Management strategies. He collaborates with project development to outline the
scope of each project, schedules, and manages resources to ensure project completion,
communicates project progress with customers and internal staff, and reviews work quality to
maintain Centrica’s standards. With over 25 years of experience in electrical and communications
wiring in California, Trevor has managed installations in various facility types, such as
warehouse/distribution, healthcare, higher education, state, and federal government, and refrigerated
and freezer warehouses.
Michel Maxsom
Sr. Project Manager-Solar Implementation Subject Matter Expert
Michel is our implementation subject matter expert with over 20 years of knowledge and firsthand
experience in the renewables and energy efficiency sectors. Michel has spearheaded the
development and construction of hundreds of projects globally and has been hand-selected by our
decision-makers to lead SLO’s construction initiatives. Recent similar projects include the City of
Cloverdale, Marcum-Illinois Union ESD, Nuestro Elementary SD, Winters Joint USD, East Nicolaus
Joint Union High School District, Winship-Robbins Elementary School District, Live Oak USD, DMV
Headquarters, the City of Elk Grove, and Auburn Recreation & Park District.
City of San Luis Obispo – Investment Grade Audit RFP 13
Donna Krebs
Administrative Manager
Another Cal Poly grad, Donna is an expert administrator who conveys to your project over 15 years of
energy project experience. She supports the West's design, construction, commissioning, and
customer service teams, has extensive experience managing complex administrative and purchasing
tasks, and is an asset on our large-scale, multi-scoped regional projects. SLO will benefit from her
expertise in project documentation, processing purchase orders, initiating invoices, labor warranties,
project closeout, and various reporting.
PERCENTAGE OF TEAM TIME DEDICATED TO SLO
Centrica is committing this team, at a minimum, to the development and construction of this project
for SLO.
Figure 8: Centrica Team Member Percentage of Commitment to SLO.
Team Member Role Percentage of Commitment to
Project
Brooklyn Stewart Senior Account Executive 30%
Project Development Team
Brett Watson Regional Project Director 20%
Mike Kostrzewa Engineering Team Lead 40%
Eugene Hong Electrical Solutions
Engineer
30%
Antonio Dennis Energy Engineer III 30%
Implementation Team
Trevor Jackson Operations Manager 10%
Michel Maxsom Senior Project Manager 30%
Donna Krebs Assistant Project Manager 30%
Post-Implementation Team
Steve Rickels M&V Manager 20%
Steve Hess Asset Manager 20%
Bill Pollard Safety Manager 20%
DIVERSE SUBCONTRACTOR/VENDOR SELECTION
Our diverse subcontractor network extends our internal Diversity and Inclusion policies. We look for
any opportunity to expand our current list of qualified MBE/WBE/SDVOB/DBE/SBE subcontractors
who meet the criteria and are registered as a diverse or small business enterprise.
We maximize the impact of the project for qualified MBE/WBE/SDVOB/DBE/SBE subcontractors by
consistently recruiting potential bidders and pre-qualifying them within the Centrica framework. This
allows us to run a competitive bid process to vet quality, terms, and contain cost to provide the
absolute best value to your SLO project, while maximizing the economic impact of the project to the
community.
Our efforts in recruiting diverse businesses allow us to commit to using a minimum of 5% of
the total scope of work purchased and installed through registered diverse business entities.
City of San Luis Obispo – Investment Grade Audit RFP 14
Figure 9: The following subcontractors are in good standing within Centrica’s pre-approved
Subcontractor Network who meet DBE/SBE requirements within the State of California.
Company Certification
ID Designation Craft
Advanced Lighting Services, Inc. 1124840 SB (Micro), SB-PW Electrical Contractor
Core Electric, Inc 2026399 SB (Micro) Electrical Contractor
Enriched Energy Solutions Inc 2013425 SB (Micro), SB-PW Electrical Contractor
Express Energy Services, Inc. 10AS0049 MBE Electrical Contractor
Neteon Technologies Inc. 42828 DBE Distributor
Turtle & Hughes, Inc. 12040002 WBE Distributor
Having developed hundreds of Projects in California, Centrica also has a strong subcontractor base
local to SLO for all disciplines. These partners already hold MSAs with Centrica and have cleared our
internal vendor qualification process.
Criteria we will use to determine which subcontractors to engage include:
1. Past Performance—Once subcontractors are onboarded, our Corporate Vendor and Supplier
Management Team assumes responsibility for measuring ongoing performance management
in collaboration with Project Managers, Site Superintendents, and client stakeholders. They
establish clear performance metrics aligned with project objectives and monitor subcontractor
performance against these metrics throughout the project lifecycle. Any deviations from
expected performance trigger proactive interventions to address issues promptly and mitigate
risks.
2. Compliance Assurance—Ability to meet SLO’s necessary security criteria.
3. Technical Qualifications—Leveraging their expertise in municipal contracting regulations, our
team employs a systematic approach to source selection, prioritizing subcontractors who
demonstrate technical proficiency, financial stability, and a track record of success. This
ensures that only the most qualified and capable partners are selected to contribute to the
project's success.
4. Small Business Status—We will seek out Subcontractors with Small Business status when
developing subcontractor pools.
5. Price—When evaluating multiple subcontractors, and our team has confirmed several
subcontractors meet all other metrics, the lowest price will be selected.
At the heart of Centrica’s subcontracting strategy lies collaboration between our West Business Unit
staff and corporate resources.
Business Unit Staff: On the ground floor developing relationships with local businesses and
utilizing corporate systems to qualify them and continuously monitor performance.
Corporate Vendor and Supplier Management: This Corporate group provides expertise in
sourcing, selection, and oversight of subcontractors. This team acts as a central hub for
subcontractor engagement, serving as the interface between our organization and a diverse
network of subcontractors. They bring experience in evaluating subcontractor capabilities,
assessing past performance, and ensuring alignment with project objectives.
City of San Luis Obispo – Investment Grade Audit RFP 15
Anticipated Energy Conservation Measures
Based on SLO’s Statement of Work for this project, the site visit, and our research, we have
developed the following Anticipated Energy Conservation Measures. The initial project described
below identified by Centrica projects savings of 49.3% of the current building baseline of 990.5
MT/yr.
Location
Total
Baseline Emissions
Reduction
(MT CO2e/yr)
Progress
Against
Current
Building
Emissions
Total
Savings
(per
year)
Net
ECM Cost
City Hall 16.2 24.5% ($1,226) $722,347
Swim Center 299.5 57.8% $29,054 $4,709,981
Ludwick Recreation Center 4.7 36.4% $1,319 $225,084
Corporation Yard 30.2 31.0% $9,933 $291,674
Police Station 16.8 22.3% $27,586 $157,775
City/County Library 0.8 14.5% $1,310 $6,959
Parks & Recreation Office 2.1 23.1% $3,190 $43,149
Whale Rock Pumping Station #2 46.2 80.1% $248,453 $1,980,069
Marsh Street Parking Garage and New Palm
Street Parking Garage 23.4 80.1% $7,421 $325,128
City-Owned Street Lighting 14.8 15.4% $22,866 $819,575
Damon-Garcia Park and Sports Complex 34.0 148.5% $33,147 $716,396
TOTALS 488.7 49.3% $383,053 $9,998,137
Figure 10: Proposed Energy Conservation Measures for the City of San Luis Obispo
demonstrating overall emissions and savings.
CITY HALL
Energy Conservation Measures: Heat Pump Boiler Replacement
Scope 1 emissions from City Hall can be eliminated by replacing the existing 608 MBtu/h natural gas
boiler with an electric air-to-water heat pump (AWHP) system to be located outdoors on concrete pad
adjacent to City Hall and Little Theater. The gas bills for City Hall show baseline gas usage of 4,444
therms/yr. Accounting for the estimated heating hours and system efficiency, the average boiler load
is only 36% of rated and the baseline heating load is 312,000 MBtu/yr. A 346 MBtu/h AWHP can
provide this heat load to the building and eliminate the natural gas usage (23.6 MT CO2-e/yr), while
increasing the electric load by 33,188 kWh/yr (7.4 MT CO2-e/yr) for a net emission reduction of 16.2
MT CO2-e/yr.
Energy Conservation Measure: Battery Energy Storage System
Looking at the site interval data, it is unlikely that a battery storage system (BESS) would be effective
for participation in a demand response program unless a distributed generation source like a solar
photovoltaic (PV) system were also implemented. Modeling out the utility bills, the annual peak
demand costs under the PG&E B-10 rate are only 15% of the annual electric bill and the max peak
City of San Luis Obispo – Investment Grade Audit RFP 16
demands are only 50 kW per month. A small battery (less than 10 kWh) would be appropriate but
would result in little to no cost savings.
SWIM CENTER
Energy Conservation Measure: Heat Pump Boiler Replacement – Competition Pool
About two-thirds of the Scope 1 emissions and more than one-third of the total Scope 1 and 2
emissions from the Swim Center can be eliminated by installing a 1,450 MBH AWHP system to offset
gas-fired heating from the two existing Lochinvar pool heaters for the Competition Pool. The boilers
would remain in-place and serve as backup and to provide additional heating capacity during peak
conditions. The Swim Center also uses a gas-fired Ray-Pak boiler to provide hot water for the
showers and a smaller gas-fired boiler to heat the Therapy pool. The gas bills for Swim Center show
baseline gas usage of 83,050 therms/yr. Assuming the Competition Pool heating accounts for 75% of
the gas usage, this translates to one Lochinvar boiler operating at 100% load for 3,250 h/yr. One
1,450 MBtu/h AWHP can provide this level of heating, reducing the Scope 1 emissions by 293.8
MT/yr. The electric usage would increase by 502,000 kWh/yr (112.4 MT/yr), making the total electric
consumption 847,700 kWh/yr and the net emissions reduction 181.4 MT/yr.
Energy Conservation Measure: 188 kW DC Carport PV and 186 kWh BESS
One option to provide further emission reductions is to offset the added electrical load from the
proposed AWHP with electricity provided from a solar PV system. From the 2022 Carbon Neutral City
Facilities Plan, a 410 kW DC PV system was recommended that would generate 687,800 kWh Year
1. But from the solar design provided by the RFI response, the system that will be installed is only
262 kW DC, with likely the same reduction in Year 1 production or 440,200 kWh/yr.
To fill the gap, Centrica is proposing a 188 kW DC PV system with a 50 kW/186 kWh Battery Energy
Storage System (BESS) that would offset 194,400 kWh (43.6 MT/yr) in Year 1, with some of the
energy produced by the PV system used to charge the BESS system. A more detailed understanding
on the performance of the 262 kW DC system will be required to optimize the added the PV system
and BESS system.
Another option to reduce emissions is to install a solar thermal hot water system for the Competition
Pool. The collectors would be located on the hill north of the pool and would be sized at 60% of the
pool surface area. This system would reduce the gas usage at the Swim Center by about 17% (74.3
MT). Electric energy usage would increase slightly due to additional pumping (1.3 MT/yr), resulting in
net emission reductions of 73.0 MT/yr.
Energy Conservation Measure: Transformer Update
The 75 kVA step-down transformer in the Equipment Room for the Competition Pool should be
replaced with a more efficient version that will lower the inherent electrical losses in the core and coil,
resulting in Scope 2 emission savings of 1.5 MT/yr
LUDWICK RECREATION CENTER
Energy Conservation Measure: Heat Pump Rooftop Units and Furnace
Scope 1 emissions of 5.1 MT/yr from Ludwick Center can be eliminated by replacing the five (5) aging
gas-fired roof-top heating and electric air-conditioning units (RTUs), a small gas-fired furnace, and an
electric split air conditioning unit with a total heating output of 384 MBtu/h and 27.6 tons of cooling
capacity with similarly sized high-performance heat pump systems. A small increase in the electrical
load is expected (0.4 MT/yr), resulting in net emission reductions of 4.7 MT/yr.
City of San Luis Obispo – Investment Grade Audit RFP 17
Energy Conservation Measure: Battery Energy Storage System
Looking at the site interval data, it is unlikely that a battery storage system (BESS) would be effective
for participation in a demand response program even though the building has an existing solar
system. The electric service is provided under the PG&E B-6 rate and this rate does not include a
demand charge. Still, further investigation into the performance of the PV system may uncover an
opportunity to size out a BESS based on arbitrage based upon energy consumption rather than peak
demand.
CORPORATION YARD
Energy Conservation Measures: Heat Pump Furnaces
Scope 1 emissions from Corp Yard can be reduced by 84% (37.0 MT/yr) by replacing the four (4)
gas-fired furnaces with a total heating output of 403 MBtu/h with similar sized high-performance split
heat pump systems. The furnace efficiencies were 80% when new, but now likely operate at about
75% (0.75 COP). Similarly sized heat pump systems a heating efficiency of about 2.77 COP. An
increase of about 54,800 kWh/yr (12.3 MT/yr) is expected, resulting in net emission reductions of 24.7
MT/yr.
Energy Conservation Measure: Heat Pump Hot Water System
To eliminate the remaining 6.9 MT/yr in Scope 1 emissions from Corp Yard, the existing 100-gallon
gas-fired hot water heater can be replaced with two 100-gallon air-to-water heat pump hot water
heaters. Due to space constraints in the electrical room, this is the only building surveyed that was
not already converted to heat pump water heating so optimizing the water size and location will be
key when selecting the proper heat pump model. An increase of about 8,900 kWh/yr (2.0 MT/yr) in
the electrical load is expected with this measure, resulting in net emission reductions of 4.9 MT/yr.
Energy Conservation Measure: Transformer Update
The 50 kVA step-down transformer in the Electrical Room should be replaced with a more efficient
version that will lower the inherent electrical losses in the core and coil, resulting in Scope 2 emission
savings of 1.0 MT/yr
Energy Conservation Measure: Battery Energy Storage System
A 62.5 kWh BESS could be installed to reduce the peak electric demands by about 25%. Scope 2
emissions will increase by 0.4 MT/yr from additional electric energy used to charge the BESS.
However, participation in a demand response program is unlikely given the small BESS size.
Typically, DR programs are effective for demand loads greater than 1 MW and most DR integrators
require the BESS to be controlled by the integrator instead of being under the building control for
peak shaving.
POLICE STATION
Energy Conservation Measure: LED Lighting
Electric energy usage and Scope 2 emissions can be reduced by 32% (17.0 MT/yr) by retrofitting the
existing fluorescent lighting with LED retrofit kits and lights to meet the current Title 24 and
Illuminating Engineering Society (IES) standards.
City of San Luis Obispo – Investment Grade Audit RFP 18
Police Station Baseline
Fixture Description Wattage Count
1 ft x 4 ft troffer with two (2) T-8 lamps 59 30
2 ft x 2 ft troffer with two (2) T-8 lamps 59 52
2 ft x 4 ft troffer with two (2) T-8 lamps 59 27
2 ft x 4 ft troffer with three (3) T-8 lamps 85 6
2 ft x 4 ft troffer with four (4) T-8 lamps 112 112
23W compact fluorescent fixture 25 1
26W compact fluorescent fixture 28 5
28W compact fluorescent fixture 30 7
150W high pressure sodium lamp fixture 188 2
400W high pressure sodium lamp fixture 465 3
50W metal halide lamp fixture 72 10
70W high pressure sodium lamp fixture 95 3
Recessed can fixture with one (1) 26W CFL 27 7
4 ft strip fixture with two (2) 4 ft T-12 lamps 66 5
4 ft strip fixture with two (2) 4 ft T-8 lamps 59 1
Vapor-tight fixture with two (2) 4 ft T-8 lamps 59 7
Vapor-tight fixture with two (2) 8 ft T-8 lamps 110 24
Figure 11: These are the baseline LED fixtures, power ratings, and fixture counts.
Police Station Proposed
Fixture Description Wattage Count
1 ft x 4 ft LED troffer retrofit kit 23 56
LED 4 ft outdoor wrap fixture 24 31
2 ft x 4 ft LED troffer retrofit kit 31 145
2 ft x 2 ft LED troffer retrofit kit 26 52
LED wall packs 22 13
LED parking lights 51 5
Figure 12: These are Centrica’s proposed LED fixtures, power ratings and fixture count for the
Police Station.
Energy Conservation Measure: Battery Energy Storage System
A 33.6 kWh BESS could be installed that would reduce the peak electric demands by 12%. Scope 2
emissions will increase by 0.2 MT/yr from additional electric energy used to charge the BESS.
However, participation in a demand response program is unlikely given the small BESS size.
CITY/COUNTY LIBRARY
Energy Conservation Measure: LED Lighting
Electric energy usage and Scope 2 emissions can be reduced by 15% (0.8 MT/yr) by retrofitting the
existing fluorescent lighting with LED retrofit kits and lights to meet the current Title 24 and
Illuminating Engineering Society (IES) standards. The baseline and proposed LED fixtures, power
ratings and fixture counts are as follows:
City of San Luis Obispo – Investment Grade Audit RFP 19
City/County Library Baseline
Fixture Description Wattage Count
2 ft x 4 ft troffer with four (4) T-8 lamps 112 12
4 ft wraparound fixture with three (3) T-8 lamps 85 8
Recessed can fixture with two (1) 26W CFLs 50 4
Figure 13: These are the baseline LED fixtures, power ratings, and fixture counts.
City/County Library Baseline
Fixture Description Wattage Count
2 ft x 4 ft LED troffer retrofit kit 31 12
LED 4 ft wrap fixture 24 8
1 ft x 4 ft LED troffer retrofit kit 23 4
Figure 14: These are Centrica’s proposed LED fixtures, power ratings and fixture count for the
Library.
PARKS AND RECREATION OFFICE
Energy Conservation Measure: LED Lighting
Electric energy usage and Scope 2 emissions can be reduced by 45% (2.1 MT/yr) by retrofitting the
existing 128 troffers with three (3) T-8 lamps rated at 85W/fixture with 31W LED troffer kits to meet
the current Title 24 and Illuminating Engineering Society (IES) standards.
WHALE ROCK RESERVOIR PUMPING STATION NO. 2
Energy Conservation Measure: 636.3 kW DC Ground-Mount PV
An analysis of the electric billing history provided by PG&E showed a total of 112 separate electric
accounts for the City of San Luis Obispo. Of these accounts, the service for the Whale Rock Pumping
Station No. 2 was by far the largest energy user at 1,298,352 kWh for the baseline period from
August 2023 thru July 2024. This is nearly four times the electric energy consumption at the Swim
Center. The emission rate for this service is only 1/5th that of the other accounts because PG&E
provides the generation and PG&E’s emission rate is less than on the majority of the electric services
where the energy is generated by Central Coast Community Energy (494 vs 94 lb. CO2-e/MWh).
Centrica is proposing a 636.3 kW DC ground-mounted PV system that would generate 1,039,000
kWh in Year 1 and reduce the Scope 2 emissions by 46.2 MT/yr.
PARKING GARAGE CARPORT SOLAR PV FOR THE MARSH STREET AND NEW PALM STREET PARKING
GARAGES
Energy Conservation Measure: Carport Solar PV
Of the 112 electric account histories provided by PG&E, the Marsh Street and New Palm Street
Parking Garages represent the 12th and 13th largest accounts. For these two parking garages,
Centrica is proposing 33.4 kW DC and 32.9 kW DC carport PV systems, respectively, that would
generate a total of 104,447 kWh Yr 1 and reduce the Scope 2 emissions by 23.4 MT/yr.
City of San Luis Obispo – Investment Grade Audit RFP 20
END-OF LIFE LED STREET LIGHTING REPLACEMENTS
Energy Conservation Measure: End-of-Life LED Replacements
Of the 112 electric account histories provided by PG&E, 50 of these accounts are for street lighting
under PG&E’s customer-owned street lighting (LS2-A) rate. The energy consumption for these
accounts is fixed by the rate, depending upon the type of lighting and the fixture power. Nearly the
entire city was upgrade to Cree 100W LED streetlights around 2014 and the monthly usage for this
fixture is set at 33.3 kWh per month per fixture. From the current baseline usage of 428,633 kWh/yr,
this is the equivalent of 1,079 fixtures (we will want to confirm this with actual fixture counts, as the
Cree project replaced more than 2,000 fixtures).
The LED streetlights are nearing the end of their life and new LED fixtures can provide the same
lumen output for about 80W per fixture, which translates to 28.2 kWh per month from LS-2 rate. The
energy savings from replacing these LED lamps would generate Scope 2 emission savings of 14.8
MT/yr. With savings produced from the more efficient LED streetlights, this can be an opportunity for
SLO to address city roadways and walkways that could use additional lighting for safety
considerations.
DAMON-GARCIA PARK AND SPORTS COMPLEX ATHLETIC FIELD LIGHTING AND CARPORT PV
Energy Conservation Measures: Athletic Field LED Lighting and Carport Solar PV with BESS
Of the 112 electric account histories provided by PG&E, the electric energy consumption for the
Damon-Garcia Park and Sports Complex represents the 10th largest account – over half that of City
Hall. About 69% of this electric energy usage and Scope 2 emissions (70,300 kWh/yr and 15.7 MT/yr)
can be eliminated by retrofitting the existing 130 metal halide fixtures with LED fixtures to meet the
current Title 24 and Illuminating Engineering Society (IES) standards. Alternatively, a small 51.3 kW
DC carport solar PV system could be installed on the service that would generate 81,700 kWh/yr –
80% of the current electric energy usage. This would generate 18.3 MT/yr of Scope 2 baseline
emissions. Looking at these measures together would be needed to properly size the PV system and
even consider a BESS with sufficient storage capacity to effectively eliminate purchased electric
energy for this service.
ADDITIONAL UTILITY SAVINGS MEASURES
During the course of the IGA the City will benefit from Centrica digging further into other facility
measures that will build savings and positive cashflow, while driving toward decarbonization and
sustainability goals. We can draw from a range of measures that we have implemented at other
municipal buildings, including the following:
EV Charging Stations
Water-Conserving Fixtures
Irrigation Controls
BMS Sequence Upgrades
BMS Replacement
Building Envelope Upgrades
Plug Load and PC Load Management
Kitchen Hood Controls
Historic Window Replacement
City of San Luis Obispo – Investment Grade Audit RFP 21
Prior Experience with ECMs
Centrica has extensive experience with performance contracting, using utility savings to pay for
comprehensive infrastructure upgrades across a diverse collection of local government facilities.
In the past two decades, Centrica has installed 25,000 individual projects in North America, over 150
MW of solar PV, and hundreds of millions of dollars in multiple ECM performance contracts and all
while achieving a net promoter score of 95 from our customers.
City of San Luis Obispo – Investment Grade Audit RFP 22
Funding
FUNDING OPTIONS INCLUDING INCENTIVES/ASSUMPTIONS
Figure 15: Various funding options available to SLO.
Our goal is to help SLO maximize the value of your city facilities. We have included custom energy
efficiency incentives for HVAC available through PG&E and hot water heat pump incentives
from TECH Clean California. But the bulk of the incentives come from Federal tax credits on
solar PV and BESS through the Inflation Reduction Act.
SLO will have several options for financing, as well as incentives to aid in the implementation to
comply with CA Government Code 4217 and a budget neutral project. The following is a list of
available financing and incentive options available as options we can bring to the table for SLO:
CEC Energy Conservation Assistance Act 1% Interest Loan Program
Power Purchase Agreements
Self-Generation Incentive Program —Mostly dried up, but we will explore availability
Market Access Program (MAP) —Centrica is a MAP Aggregator
Based on our experience, California municipalities have some great financing options. We have
worked with many municipalities and public sector customers to facilitate financing through PPA’s and
tax-exempt lease purchase (TELP) lenders. We have also worked with customers to blend financing
options such as a Power Purchase Agreement for solar and/or capital buy downs with the balance
funded through TELP.
Other funding source to be considered:
Master lease agreements
Bonds
Certificates of participation
Payment schedules will be considered, and repayments can often be delayed for up to 12 months to
shift appropriations to the next budget period.
Another potential financing option similar to a Power Purchase Agreement is Energy-As-A-Service,
an "off-book" financing model where a third-party owns, operates, and maintains the equipment
installed throughout SLO, and the third-party is paid by savings generated from the established
measures.
City of San Luis Obispo – Investment Grade Audit RFP 23
Enterprise Fund – Option for Expansion of Impact
It is very clearly understood that SLO has no plans to include in this project any measures that affect
Enterprise Budget utilities or assets but should affect only that of the General Fund. Should SLO wish
to explore options of utilizing both, we have experience in working with other California municipalities
where, in the interest of achieving over-arching city sustainability and decarbonization goals, a project
is financed to include measures from both Enterprise and General Fund to generate positive cash
flow and proportionately pay debt service for the financing of said measures.
City of Cloverdale Example
For the City of Cloverdale, we implemented lighting and mechanical upgrades throughout the City
affecting General Fund, AMI technology water meters affecting the Water Enterprise, along with solar
arrays at both the Water and Wastewater Treatment Plants that affected both their Water Enterprise
and Wastewater Enterprise.
Funding was provided and justification accounted for through a combination of the lender, the
Finance Director, and City Manager to proportionately repay the loan based on the savings generated
from both budgets:
City’s General Fund (7.91%)
Water Enterprise (71.99%)
Wastewater Enterprise (20.10%)
The strategy was to utilize the larger savings generated from the solar and water meter projects to be
able to include larger mechanical upgrades needed to assist the General Fund, avoiding huge future
maintenance costs, while taking extraordinary strides toward their sustainability goals.
INFLATION REDUCTION ACT – INVESTMENT TAX CREDIT BENEFIT
The Inflation Reduction Act (IRA) was signed into law by President Biden on August 16, 2022, and
offers several incentives that will be of great benefit to SLO in implementing locally sourced green
energy. Tax-exempt entities such as SLO can now receive a direct payment of the 25.5% Investment
Tax Credit (ITC) for solar and storage with the ability to stack more incentive based on “adders.” With
the added benefits of the ITC, SLO can maximize decarbonization and Scope 1 emission reduction
measures to provide the best value to the city and the overall project economics.
For the solar and battery storage project, the ITC was calculated at 25.5% of total project cost for all
solar and battery storage systems except the PV system at the New Palm Street Garage, which was
calculated at 34%. SLO’s location qualifies it for the Energy Community designations.
1. Standard ITC Deduction (25.5%)1: This is a baseline that applies to the majority of solar and
battery energy storage systems.
2. Low-Income Community Bonus (8.5%): The low-income adder is available to projects in
designated low-income census tracts. This adder, unlike the energy community bonus, has an
application and approval process to qualify for the bonus. This adder is applied to the solar
project at the New Palm Street Parking Garage only.
Combining these, the total potential ITC amount available for the project is $1,473,626. This helps in
funding the project and aligns with broader goals of sustainability and leading by example in the
community.
1 The IRA requires a 15% reduction in overall incentive if tax-exempt financing is used to pay for the project. In our calculations, we assumed the
project would be funded this way and reflected this in our modeling and the percentages shown above.
City of San Luis Obispo – Investment Grade Audit RFP 24
Experience with Similar Customers
The following customer stories highlight Centrica’s experience with implementing conservation
projects and working with customers of similar size and facilities.
CITY OF CLOVERDALE
Location: Cloverdale, California
Project Dates: 2022 – Current
Total Project Cost: $7.9M
Annual Utility Savings: $541K (energy and water)
Reference: Kevin Thompson, City Manager
Phone: 707-894-1723
Email: kthompson@ci.cloverdale.ca.us
On Budget and On Schedule: All project phases were
implemented at the estimated costs and on schedule.
Services Designed and Implemented: Establish
baseline conditions, develop energy profile, determine
optimal energy source, develop conceptual design,
economic and financial analysis including revenue
recovery from new water meters, permitting and
regulatory review, production of the final report, project
permitting, construction document design and oversight,
performance validation. Mix of measures included
lighting (interior, exterior), roof-mount and ground-mount
solar, mechanical, and replacement of city-wide water
meters.
Relevance to SLO: The overarching goal of these
upgrades was to reduce utility consumption and cost,
lower both Scope 1 and Scope 2 emissions, and provide
resilience and a reduction in grid reliance.
The collaboration between Centrica and Cloverdale was
a resounding success, resulting in a major step toward
their sustainability and de-carbonization goals, while
delivering more efficient and sustainable city infrastructure.
The project was implemented across a diverse range of building types that will closely resemble that of
SLO and was financed as a single project with debt service paid through savings that bridged both
Enterprise and General Fund budgets.
Working with PG&E’s Sustainable
Solutions Turnkey group, Centrica
converted the interior and exterior
lighting from T8 to LED and
upgraded HVAC systems throughout
the city. Approximately 900kw of
solar was installed at the Water
Treatment Facility (roof-mount) and
the Wastewater Treatment Facility
(raised ground-mount in an overflow
basin). We also converted the water
meters across the city to AMI
technology, which allows the city to
remotely gather usage data for
trending and billing. Centrica
provided audit, design, and
construction services for the entire
scope of work, encompassing almost
all city owned buildings.
City of San Luis Obispo – Investment Grade Audit RFP 25
CALIFORNIA DEPARTMENT OF MOTOR VEHICLES
Location: Sacramento, California
Project Dates: 2019 – 2022
Total Project Cost: $9M
Annual Utility Savings: $610K (326,271 kWh)
Reference: Sjon Woodlyn, Facilities Operations
Branch Chief
Phone: 916-848-0861
Email: sjon.woodlyn@dmv.ca.gov
On Budget and On Schedule: All project phases were
implemented at the estimated costs and on schedule.
Services Designed and Implemented: Establish
baseline conditions, develop energy profile, develop
conceptual design, economic and financial analysis
including aligning financing partner, permitting and
regulatory review, production of the final report, project
permitting, construction document design and oversight,
performance validation. Mix of measures included
lighting (interior, exterior), solar, mechanical, and
controls (both mechanical BMS and lighting).
Relevance to SLO: Similar to SLO, the State of
California has extremely aggressive decarbonization
goals. Throughout the development of this project, we
were able to identify a wide range of measures that
lowered their utility cost and significantly reduced their
Scope 2 emissions.
The project was installed utilizing 4217, where savings
were used to fund the upgrades, while subsidizing the
cost of modernizing their infrastructure and equipment
with more sustainable and efficient systems and
deferring millions in maintenance cost.
The project was implemented at the Headquarters Campus for DMV, which included several multi-story
buildings, and was implemented without work interruption for the building’s occupants.
Through PG&E’s Sustainable
Solutions Turnkey group, Centrica
was selected to provide a
design/build energy retrofit at the
DMV headquarters in downtown
Sacramento. Centrica audited the
campus and worked with the DMV to
design and construct a replacement
of interior fluorescent and exterior
HID’s with new energy efficient LEDs
and Title 24 compliant controls, a
replacement of large fans at four air
handlers with fan walls, new HVAC
controls, retro-commissioning of all
HVAC equipment, and repairs of
their existing solar array. Like SLO,
the DMV needed multiple ECMs to
be supported within the project by
the large savings associated with the
lighting and lighting controls
measures.
City of San Luis Obispo – Investment Grade Audit RFP 26
FONTANA UNIFIED SCHOOL DISTRICT
Location: Fontana, California
Project Dates: 2018-2019
Total Project Cost: $9.9M
Annual Savings: 28.5 MWh
Reference: Errol Glen, Energy Manager
Phone: 909-357-7528
Email: glenem@fusd.net
On Budget and On Schedule: All project phases
were implemented at the estimated costs and on
schedule.
Services Designed and Implemented: Just 50 miles
east of Los Angeles in the heart of San Bernardino
County, the school district prides itself on educating its
diverse population and has an 87% graduation rate. We
were tasked to reduce costs to operate and maintain
the cooling systems district-wide and stabilize
temperatures throughout the schools. 500 rooftop units
were installed on 11 campuses, along with controls
(BMS). Centrica also retrofitted 17 campuses with new
high-efficiency exterior lighting.
Relevance to SLO: While not looking to electrify the mechanical equipment, the District was looking
to upgrade and modernize their very dated and inefficient mechanical systems. We were able to identify,
develop, and install a wide range of measures that both lowered their utility cost and significantly
reduced their Scope 1 emissions.
This project addressed a customer’s needs that similarly reflect that of SLO, including addressing and
funding the replacement of aging mechanical systems across multiple sites, reducing utility costs, and
making a significant dent in Scope 1 emissions in a budget neutral manner.
The Fontana USD selected
Centrica to install 500 rooftop units
across their 17 campuses. The
project has resulted in optimal
educational environments for all
users. For that, the Department of
Energy awarded the district an A
and named it a DOE RTU
Challenge Winner. Project
included comprehensive energy
audit, engineering design, HVAC
installation, building automation
controls, and exterior lighting
upgrades.
City of San Luis Obispo – Investment Grade Audit RFP 27
COAST UNIFIED SCHOOL DISTRICT
Location: Cambria, California
Project Dates: 2019-2022
Total Project Cost: $2.3M
Annual Savings: $480K Utility Savings / $100K
Maintenance Savings
Reference: David Bidwell, Operations Director
Phone: 805-459-1579
Email: dbidwell@coastusd.org
On Budget and On Schedule: All project phases
were implemented at the estimated costs and on
schedule.
Services Designed and Implemented: This project
was funded primarily through Prop 39 but so strict
guidelines applied for all steps of the process. We were
responsible for developing the energy profile,
determined optimal energy source, developed
conceptual design, economic and financial analysis,
permitting and regulatory review, production of the final
report, project permitting, construction document
design and oversight, and performance validation. Mix
of measures included Solar, Lighting (Interior, Exterior),
Mechanical, and BMS Controls.
Relevance to SLO: A close neighbor to SLO, this was a
comprehensive project where budget neutrality was
vital. Although there was no major mechanical work
done, BMS controls were installed and commissioned,
along with the lighting controls and LED upgrades. We
also retrofitted the sports field lighting to LED,
contributing to a huge drop in kWh usage per light.
Centrica converted the interior
and exterior lighting from T8 to
LED at the grammar school,
middle school, high school, and
District Office. In addition, we
implemented a retrofit to the
football stadium high intensity
discharge lighting at the high
school with LED. We also
installed new roof- mounted solar
arrays at the District Office and
middle school, a carport array at
the grammar school, and a
ground-mounted array at the
high school.
Centrica provided audit, design,
and construction services for the
entire scope of work,
encompassing almost all the
campus and administration
buildings and exterior lighting.
City of San Luis Obispo – Investment Grade Audit RFP 28
CITY OF REEDLEY
Location: Reedley, California
Project Dates: 2018 – 2019
Total Project Cost: $9.9M
Total Savings: $2.8M over PPA Term
Reference: Russ Robertson, Director of Public Works
Phone: 559-637-4299 x213
Email: russ.robertson@reedley.ca.gov
On Budget and On Schedule: All project phases were
implemented at the estimated costs and on schedule.
Services Designed and Implemented: This was a
ground-mount solar project. We were responsible for
developing the energy profile, develop conceptual
design, conduct economic and financial analysis,
permitting and regulatory review, project permitting,
construction document design and oversight, and
performance validation.
Relevance to SLO: Located in California’s central valley
a couple hours north-east of SLO, Reedley was primarily
interested in the development of locally generated clean
energy and reduction of Scope 2 emissions. Working
with the City Council, we were able to determine the best
course was to deliver the project with a PPA financing
mechanism, although that was before the passing of the
Inflation Reduction Act that opened the Investment Tax
Credit up to public agencies.
The final project resulted in a 1,026-
kW ground-mount solar photovoltaic
array with a NEXTracker system on
an undeveloped plot of land. While
the team faced challenges with
timelines, Centrica was still able to
deliver on the completion date
promised to the City of Reedley. In
addition, Centrica worked with the
City to obtain alternate financing that
lowered the City’s PPA rate from
the original agreement by 1.46 cents
per kWh, with no other changes
made to the project. Through the
solar project, the City is estimated to
save $17,000 in year one, with
estimated savings of $2.8 million
over the 25- year term of the PPA.
City of San Luis Obispo – Investment Grade Audit RFP 29
Safety, Diversity, and Sustainability
Project managers are responsible for developing site-specific safety protocols. Below is our detailed
process for ensuring worker and occupant safety.
SAFETY
Site-Specific Safety Plan
Project safety starts with our Project Managers developing a Site-Specific Safety Plan (SSSP) for
each project. This is a high-level overview of hazards and appropriate controls associated with the
site and particular tasks of a project. The Centrica Safety Lead reviews and approves all SSSPs.
Site Utilization Plan
In addition to developing the SSSP, the Project Manager is responsible for developing a Site
Utilization Plan (SUP). The SUP is a bird’s eye view of the site and shows safety related items and
equipment used on the site.
The level of detail of the SUP is dependent on the size and scope of the project. A larger rooftop solar
project will have much more detail and content and will probably be developed as a separate
document. A smaller interior lighting project will probably have its SUP included within the SSSP.
The Centrica Safety Lead reviews and approves all SUPs.
Site Safety Inspection Report
The Site Safety Inspection Report (SSIR) is a checklist of items to make sure that our sites remain
safe and hazard-free. The Project Manager is responsible for making sure that a SSIR is completed
on each active project every month. The expectation is that any deficiencies are addressed at the
time of the inspection.
Safety Observation Program
Our Safety Observation program gives our employees the opportunity to observe others on a job
site. The program operates under the principle of no name/no blame. The intent of the program is to
recognize and acknowledge good behavior and identify and correct at-risk behavior. Each Business
Unit has a target number of observations to be completed each month. A review of all Safety
Observations is sent monthly with summaries to our operations field staff with lessons learned.
General Safety measures can include:
Site Safety Inspection Reports – Completed Monthly
Knowledge of locations of hospitals
Shade considerations
Personal Protective Equipment
First Aid Kids
Fall Prevention Measures
Ongoing company-wide, position-specific safety trainings
Pandemic Preparedness protocols (Covid-19 response)
City of San Luis Obispo – Investment Grade Audit RFP 30
Pricing Factors and Labor Rates
Our labor rates for the job classifications that will perform the implementation of the project: both
direct rates and other components building up to fully loaded direct labor rates, e.g., direct labor
costs, fringe benefits, payroll taxes and any other cost components.
CENTRICA’S LABOR RATES FOR ALL JOB CLASSIFICATIONS
Figure 16: Proposed Overhead and Profit on Internal Labor Rates
Design Build Markups
Profit 8%
Overhead 12%
Figure 17: Labor Rates
General Category Billable Hourly Rate Notes
Energy Engineer $130 1
Senior Energy Engineer $155 1
Project Director $180 1
Electrical Solutions Engineer $125 1
Solar Energy Engineer $125 1
Senior Solar Energy Engineer $155 1
Solar Project Director $180 1
Assistant Project Manager $115 1
Project Manager $160 1
Senior Project Manager $180 1
Site Superintendent $150 1
Controls System Integrator $145 1
Regional Controls Manager $180 1
Field Supervisor $150 1
Technician I $110 2
Technician II $115 2
Technician III $120 2
Foreman I $125 2
Foreman II $130 2
1. Hourly rates are subject to Employment Cost Index annual increases
2. Hourly rates assume straight time for San Luis Obispo County and are subject to semi-annual
prevailing wage increases.