HomeMy WebLinkAbout12/17/2002, PH1 - IMPLEMENTATION OF ENERGY CONSERVATION MEASURES AT SELECTED CITY FACILITIES. council M�,D.
Dec.. 17 . 2002
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CITY OF SAN LUIS OBISP_ O
FROM: John Moss, Utilities Directaol`�
Prepared By: Ron Munds,Utilities Conservation Coordinatorp)
SUBJECT_ : IMPLEMENTATION OF ENERGY CONSERVATION MEASURES AT
SELECTED CITY FACILITIES.
CAO RECOMMENDATION
1. Approve:
a. The Scope of Work proposed by Kinetics Energy Services, Incorporated
(Kinetics) for the energy conservation measures to be implemented at selected
City facilities (Attachment 2,Exhibit A).
b. The contract with Kinetics in the amount of $3,019,328 for the preliminary
design, design, construction and construction management of the energy
conservation projects and authorize, the Mayor to execute the contract
(Attachment 2).
c. The Support Services and Guaranteed Savings Agreement with Kinetics and
authorize the CAO to execute the agreement upon completion of the installation
agreement and acceptance by the City (Attachment 3).
2. Adopt findings necessary to proceed with a "design and build" contract and contract
execution.
3. Authorize the Finance Director to work with the City's financial adviser, Fieldman,
Rolapp and Associates, to secure and implement Pease/purchase financing for the energy
projects, term not to exceed 10 years.
4. Appropriate $3,019,300 for these projects, to be funded via lease/purchase financing and
rebates, from the Sewer Fund ($2;309,300), Water Fund ($238,300) and Capital Outlay
Fund($471,700).
5. Adopt the Mitigated Negative Declaration of Environmental Impacts.
REPORT IN BRIEF
In response to the energy crisis of 2000 the Council directed staff to review opportunities for the
City to conserve additional energy and implement distributed generation projects at key City
facilities. To accomplish this, staff used a process for contracting with energy service companies
(ESCo's) established by the State Department of General Services (DGS). After a lengthy
proposal and review process Staff recommended and Council approved the use of Kinetics, an
ESCo, for the development and implementation of energy conservation and distributed
generation projects for the City.
Council Agenda Report—Energy Services Proposal
Page 2
Kinetics has completed their preliminary engineering work for a number of projects (at their sole
expense to date) and approval of the CAO recommendation will move those projects forward
into design and construction. The proposed projects will cost the City $3,019,300.00 and will be
financed through lease/purchase financing to be secured by the City's Finance Director. The
guaranteed annual savings from the proposed projects is estimated to be no less than $353,714.
Debt service based on 10 year lease purchase financing is estimated at $322,700 per year. A
Support Services and Guaranteed Savings Agreement is, required for the first three years
following implementation with an annual cost of$7,452. An executive summary of the proposed
energy conservation measures (ECMs) is described in Attachment 1.
DISCUSSION
Background
At the July 17, 2001 City Council meeting, the Council discussed the City's role in regards to
energy conservation and efficiency. One of the recommendations, which was approved by the
Council, was to evaluate the feasibility of implementing distributed generation projects on City
facilities with the assistance of a consultant if deemed necessary. After researching the options
available to the City, staff determined the State Department of General Services (DGS)
procurement program for Energy Services Company's (ESCo's) assistance to be the least
complicated, lowest risk and most cost effective alternative available. At the September 18,
2001 City Council meeting, the Council approved using DGS's procurement program.
To date, the City has been following DGS's four step process to utilize the pool of qualified
ESCo's. The steps are:
Step 1: ESCo Ordering Form
Step 2: Preliminary Conservation Assessment
Step 3: Conservation Audit Agreement
Step 4: Conservation Service Agreement
As part of Step 1, DGS supplied the City a list of qualified ESCo's, of which four were selected
based on their experience with distributed generation projects. . The selected companies
submitted Preliminary Conservation Assessments based on site inspections of the facilities that
staff identified as potential locations to implement energy conservation measures (ECMs). The
initial facilities identified were:
1. Swim Center
2. Water Reclamation Facility
3. Water Treatment Plant, Hydro-electric Facility
4. Utilities Department Administration Office
The first three,facilities were chosen because of the large amount of energy they consume. The
Utilities Department Administration Office was chosen for its potential to use photovoltaic
technology. Based on the content, price and approach taken by each company, staff selected
Kinetics Energy Services to proceed to the Conservation Audit Agreement phase.
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Council Agenda Report—Energy Services Proposal
Page 3
As part of this phase, the City expanded the scope of work to include the Recreation Center,
which was about to undergo a remodel, and the parking structures' interior lighting. Kinetics
performed a more detailed analysis of all the facilities and submitted a report identifying the
ECMs, program costs and payback periods, financing options, completion period, monitoring and
verification plans and guaranteed cost avoidance. At this point, certain ECMs, such as analyzing
the hydro-electric facility at the Water Treatment Plant, were deferred (and will be included in
the Water Treatment Facility Master Plan now underway) and certain components of the
Recreation Center project were eliminated as those same improvements were already being
included in the remodel project.
After reviewing the refined proposal and consulting with the City Attorney regarding contracting
procedures for a project such as this, it was determined a third party review would be prudent to
ensure that the proposal is fair and reasonable, and that the assumptions and conclusions reached
by Kinetics are accurate.
Again working with DGS to locate a qualified firm to review the proposal, the City contracted
with Bechard Long & Associates (BLA) to evaluate the report. The results of the review and
responses to BLA's comments by Kinetics is available for review in the Council Office. In a
nutshell, BLA concluded that the analysis of the projects and subsequent cost and payback
periods contained in the proposal were accurate and reasonable.
Energy Measures Evaluation
As mentioned previously, through the evaluation process, the list of ECMs were refined based on
amount of energy that would be saved, cost and payback period. Additionally, based on the
discussion staff had with the Council at November 12, 2002 City Council meeting, the projects
that are being recommended to move forward are as follows:
Project Project Cost Project Cost $Energy Payback/
(after incentives) SayingsfYear Years
Pool Cogeneration $349,295 $274,295 $44,988 6
Rec.Center Controls $29,211 $29,211 $2,883 10
Water Treatment Plant $145,082 $142,382 $16,670 9
Power Quality
Water Reclamation $2,309,304 $1,913,304 $283,046 7
Facility
Utilities Admin PV $93,218 $55,718 $3,177 18
Rec.Center PV $93,218 $55,718 $2,950 19
Totals $3,019,328 $2,660,628 $353,714 75..
A discussion of the scope of each proposed ECM can be found in the Kinetics proposal
(Attachment 2, Exhibit A). As indicated in the table of projects, improvements at the Water
Reclamation Facility make up a significant portion of the total project cost and have the greatest
energy and monetary savings per year. Though the photovoltaic systems at the Recreation Center
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Council Agenda Report—Energy Services Proposal
Page 4
and the Utilities Administration office have a payback of more than 10 years (the term of the
financing), staff is recommending proceeding with those projects because of the length of the
panel warranty, which is typically 25 years, and the low cost of operation and maintenance.
The cost of maintaining the micro turbines and the eventual replacement of the turbine
mechanism itself have not been factored into the payback period shown in the previous table.
The addition of the annual maintenance cost for the turbines have a very minor affect on the
payback period (about 1 to 2 years) for the micro turbine projects. Thus, the net effect is
negligible in that there will still be a positive cash flow based on energy savings versus the debt
service payment (Attachment 4).
Projects evaluated but not being recommended.at this time are the lighting project at the two
parking structures and rebuilding of the solar hot water heating panels at the Swim Center. The
lighting project's long payback period eliminated it from further consideration.
Project Project Cost Project Cost $ Energy Payback
(after incentives) Savings/Year (Years)
Parking Structures $105,609 $105,609 $2,509 42
Lighting
Solar Water Heating $340,000 $340,000 $24,600 14
Analyzing the solar water heating system was more problematic. It was determined early on that
the existing system would have to be removed since it had reached point of deterioration that
rehabilitation was not an option. Kinetics did research replacement systems but found that the
payback period and energy savings was not as cost effective when compared to the micro turbine
technology. Given the track record of the old system, operation and maintenance costs were also
a concern. Additionally, there are no financial incentives available for this type of system.. It is
staff's experience that projects with a payback period of greater than 10 years, are generally not
cost effective as the systems age, technology improves and market conditions change over a 10
year span. For these reasons, staff determined the solar water heating system was not feasible at
this time.
Contracting Issues
The type of agreement that staff is proposing entering into with Kinetics is a departure from the
City's usual contracting procedures which are defined in the City's Charter in Article IX, Section
901. In a typical scenario, the City would identify a project and solicit proposals for the design of
that project, then award a construction contract to the lowest responsible bidder.
Early on, staff realized they did not have knowledge or expertise to evaluate or design the energy
conservation measures or distributed generation opportunities available to the City. This is why
staff recommended and the Council approved using the DGS procurement process. The
contracting procedures for this process, as outlined previously in the report, has DGS compiling a
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Council Agenda Report—Energy Services Proposal
Page 5 _
list of qualified ESCo's. The participating agency then solicits competitive proposals from the
list to perform a preliminary assessment of potential ECMs. Based on the content of the
proposals, the agency then selects an ESCo to complete an Energy Audit Agreement which is
essentially the preliminary design of the project to determine the feasibility and cost effectiveness
of the recommended ECMs The final step, which is where the City is at now,is contracting for
the final design of the project and overseeing the actual construction of the approved project. In
return for using the services of the ESCo throughout the process, they guarantee the energy
savings and the subsequent dollars saved, and are responsible for correcting or adjusting
monetarily for any wrong assumptions that result in not achieving those savings. The end result
is that the monetary savings are to pay for the cost of the project(s) over the payback period of
the ECMs. The proposed contract with Kinetics is structured so that the Utilities Director can
terminate the agreement after the design phase if there are any changes in cost and/or feasibility
of the project.
Staff is requesting that the Council make the following findings in order to facilitate the award of
the energy services contract to Kinetics:
Findings:
1. That the Charter bidding requirements were met by the initial competitive process in
choosing the most qualified ESCo.
2. That this type of project was not contemplated by the Charter and is unique in that the
actual energy savings guaranteed by Kinetics are used to offset the cost of the project.
3. Use of a purely competitive process was not practical given the uniqueness of the
recommended projects. The purpose of the competitive bidding process is being assured
by the guaranteed savings Kinetics has committed to.
4. That the third party review determined that the proposal from Kinetics is reasonable
based on industry standards.
One final note, in recognition of the value of energy conservation programs and services such as
this, the State legislature adopted specific legislation (Government Code 4217) to authorize
general law cities to contract with ESCo's through the DGS program.
Support Services and Guaranteed Savings Agreement
Another component of this energy services procurement process is the Guaranteed Savings
agreement (Attachment 3). In order to ensure the effectiveness of the energy conservation
measures (ECMs) installed, Kinetics will provide monitoring and verification services for the
selected facilities and equipment. Under the agreement, Kinetics will provide monitoring
services and quarterly reporting of the actual energy savings received from each ECMs. Kinetics
also provides under this agreement a performance guarantee, which based on the current
assumptions and selected projects, guarantees the City will receive program savings and utility
incentives in excess of $347,587 annually. The term of the Support Services and Guaranteed
Savings Agreement is not to exceed 10 years, and can be no less than 3 years. The support
services agreement will cost the City$621 per month or$7,452 per year.
Council Agenda Report—Energy Services Proposal
Page 6
Environmental Review
The Community Development Department performed an Initial Study (Attachment 5) of the
potential environmental impacts associated with the various proposed projects. The results of the
study are summarized as follows:
Project Environmental Determination
Water Reclamation Facility Cogeneration Replacement
Water Reclamation Facility Blower Existing
Recreation Center Controls Existing
Swim Center Cogeneration Mitigated Negative Declaration for noise
It was determined that by building a block wall enclosure for the micro turbines at the Swim
Center, the noise from the turbines would not adversely impact the residential area on Southwood
Drive.
Summary
In summary, the recommended action achieves the goals and policies identified by the Council at
the July 17, 2001 meeting. The recommended projects will provide for some greater
independence for the utility grid, provide for some distributed generation capability, serve as a
model for the community through the use of photo voltaic panels, and reduce energy costs for the
City. The substantial annual savings from these projects will be realized following repayment of
the lease/purchase financing in 10 years..
Following completion of these projects, staff will the focus its efforts on City energy
conservation programs and providing conservation information to our citizens.
CONCURRENCES
The Public Works Department concurs with the recommendations made in this report.
FISCAL IlVIPACT
As stated in the report, the energy savings from the recommended ECMs are to pay for the
project costs over the payback period. The monitoring and verification plan of the ECMs ensures
the projects will perform according to expectation, therefore yielding the monetary savings at
today's energy costs to pay back the approved funding mechanism..
After researching funding options, the Finance Director is recommending that the projects be
debt financed through a lease/purchase agreement. It was determined that this type of financing
made the most sense in that it would not tie up working capital and meets the criteria for debt
financing.
Council Agenda Report—Energy Services Proposal
Page 7
Total Contract Cost--Breakdown b Phase
Project Development&Desi $509,420
Construction Management& Consulting $3569878
Construction $2,043138
Bond,Permits, Contingencies $1099892
Total Project Cost $390199328
Estimated Annual Savings $3539714
Estimated Annual LeasetPurchase Payment $322,500
Anticipated Rebates $5489700
The agreement with Kinetics also includes an operating program expense for support, monitoring
and verification services for a minimum period of three years. The cost of these services is
$621.00 per month or $7,452 per year and the services will begin following completion of the
projects in Summer 2003. Staff will include funding for the monitoring and verification services,
which are a requirement of the performance guarantee, in the 2003-05 financial plan.. The cost of
these services will be more than offset by the projected savings and as stated previously are
required by the performance guarantee provided by Kinetics.
ALTERNATIVES
The Council could direct staff to follow the standard contracting procedures as defined in the
City Charter and go out to bid for the entire project or project phases. Because of the amount of
time both staff and Kinetics has spent in developing the proposed project, the favorable results of
the third party review and thoroughness in which Kinetics researched and developed the various
ECMs, staff does not recommend this alternative.
ATTACHMENTS
Attachment I- Proposed Services Executive Summary
Attachment 2- Contract and Scope of Work
Attachment 3- Support Services and Savings Guarantee Agreement
Attachment 4- Cash Flow Analysis
Attachment 5- Initial Environmental Study
Available in Council Office for Review
Peer Review of Proposed Services by Bechard, Long and Associates, Inc.
Attachment 1
SKI NET ICS
CITY OF SAN LUIS OBISPO
EXECUTIVE SUMMARY
In recent years, the City of San Luis Obispo has successfully completed many energy
retrofit projects. As a result of these progressive efforts most of the 1' tier savings
opportunities (lighting, EMS and HVAC retrofits) have been addressed. However, Staff
believed there were still opportunities at the water/wastewater plants and the swim
complex. In 2001, the City solicited proposals from energy service companies (ESCo's) in an
effort to address these areas. Through a competitive review process, City staff selected
Kinetic Systems, Inc. (Kinetics) to perform a detailed engineering study and compile a
proposal.
Over the past six months Kinetics has analyzed City energy usage, performed detailed
facility audits, interviewed staff, and reviewed plant operating requirements. The audited
facilities were: Utilities Administration Center, Swimming Pool Complex, Recreation Center,
Water Treatment Plant and associated pumping stations (WTP), Wastewater Treatment
Plant (WWTP) and March & Palm Street Parking Structures. A listing of the energy
conservation measures (ECM's) considered were: Building Envelope, Lighting, HVAC;
Controls, Photovoltaic, Cogeneration, High Efficiency Motors, Power Quality and Variable
Frequency Drives (VFD's).
What follows are two spreadsheets that summarize the results of the in-depth audit. The
first one entitled "Base Program Summary", lists the ECM's that Kinetics recommends due
to their strong financial performance. Highlights of the base program include:
♦ $2.8 Million in Capital Improvements
♦ $284 Thousand in Utility Incentives
o $35o Thousand in Annual Savings
♦ 7 Year Payback
The second spreadsheet entitled "Optional ECM Summary", lists those ECM's that,
although they do not have as strong a financial payback, may warrant further consideration
by the City. Photovoltaics which produce "green" electric power from the sun are ECM
options at two locations. PG&E is currently offering hefty incentives for the installation of
photovoltaics. Another option listed here for consideration is the replacement of the
lighting fixtures in two City-owned parking structures. These fixtures are currently in the
City's budget to be replaced and could be included in this program.
What follows are a company overview, program highlights and financial highlights. Kinetics
wishes to thank the City for this opportunity and we look forward to becoming your long
term energy and environmental partner.
Executive Summary i
I�
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-= Attachment 1
KINETICS
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COMPANY OVERVIEW
The Kinetics' team is uniquely qualified with core competencies in utility conservation and
water services. Our performance track record nationwide, including many State of California
Public Agencies, has positioned us as a premier supplier of utility conservation services. The
following is a summary description of our company.
Kinetic Systems. Inc.
Kinetics is one of the top five largest mechanical contractors in the country, employing over
8,000 of the industry's top administrative and trades personnel. Headquartered in Santa
Clara, CA Kinetics has been in business since 1973 with annual revenues exceeding $1.2
billion. Kinetics has offices located throughout the State including construction and service
branches in.San Diego, Irvine and Union City, to name a few.
Kinetics Energy Services
Kinetics Energy Services (a focus group of Kinetics) is an established energy conservation
partner for many State of California school districts and municipalities. In addition, Kinetics
is a pre-qualified provider of energy services for the State of California's Department of
General Services, Real Estate Division. Kinetics acts as general contractor managing all
aspects of energy conservation installations, including: design, auditing, installation,
guarantee, maintenance and operations.
The Kinetics' team is proud of its capabilities and expertise in the energy services
marketplace. Our capabilities include:
• HVAC modernization
• Lighting services
• Energy management
• Water/wastewater plant retrofits
• Solar energy installations
• Thermal energy storage/cogeneration systems
Our track record in California of exceeding customer expectations and savings results has
earned Kinetics the reputation as a premier supplier of utility conservation services.
Executive Summary 2 _ I
Attachment 1
SKI N ET I CS
PROGRAM HIGHLIGHTS
Lighting Scope
Water Treatment Plant and Wastewater Treatment Plant
■ Retrofit or replace existing Tie fluorescent lighting fixtures with high efficiency state-of-
the-art T8 lamps and electronic ballast.
® Replace incandescent lighting systems with compact fluorescent lamps.
■ Retrofit of exit signs to LED.
Mechanical Scope
Swimming Pool
■ Install two (2) 3okW Cogeneration systems to simultaneously provide electricity and hot
water to the pool and complex.
Wastewater Plant
■ Install eight (8) 3okW Cogeneration systems to simultaneously provide electric power
and hot water to the treatment facility. This cogeneration will utilize the waste methane
gas (currently flared) to produce electricity and hot water for plant operation.
■ Install a new high efficiency Aeration Blower system to replace existing for improved
aeration control and energy efficiency.
■ Install new Power Factor Correction devices at various locations on the electrical
distribution system to improve the power quality and reduce electric demand and
consumption. These devices will also reduce operating temperatures of the motors and
switchgear prolonging their useful life.
■ Install new Variable Frequency Drives (VFD's) for proper operation and efficiency of the
cooling tower fans.
Water Treatment Plant & Pump Stations
s Install new Power Factor Correction devices at various locations on the electrical
distribution system to improve the power quality and reduce electric demand and
consumption. These devices will also reduce operating temperatures of the motors and
switchgear prolonging their useful life.
Executive Summary 3 I
Attachment I
SKI NET ICS
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Controls / EMS Scope
Recreation Center
■ Expand the City 's existing energy management system (EMS) to provide direct digital
control of the newly installed HVAC equipment.
Support Services Scope
All Locations
■ Supervise the complete turnkey installation of the above referenced work, including
compliance with all State and local codes. Provide project closeout documentation,
warranty compliance and Staff training on all newly installed systems.
■ Facilitate all paperwork associated with potential utility incentive programs.
■ Provide energy information and reporting functions via a Web-based browser.
■ Provide measurement and verification (M&V) reports to verify energy savings on a
quarterly basis and reconcile guaranteed savings annually for budget.integrity.
Executive Summary 4 _ I a
i
Attachment 1
@::� K ET I CS
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FINANCIAL HIGHLIGHTS
Annual Energy Savings ................................................................................... $337.38-1
Annual Lighting Material Savings............................................................................$206
(Cost of lamps, bulbs, ballast, lenses, disposal and incineration.)
Equipment Repair Savings.................................................................................$10,000
(Estimated repair cost mechanical equipment scheduled for replacement.)
EstimatedUtility Incentives.............................................................................$283,700
Total First Year Project Savings.................................................................$63-1,287
City Investment.....................................................................................$2,832,892
Annual Support Services............................................................................$ 7,452
ADDITIONAL BENEFITS
❖ Reduces deferred maintenance (CIP) backlog by over$2.8M.
❖ Guaranteed savings, performance and accountability
❖ Installation completed with minimum facility disruption
❖ Improved plant operation and safety
Executive Summary 5 I` I
ATTACHMENT 2
AGREEMENT
THIS AGREEMENT is made and entered into in the City of San Luis Obispo on this day
of , by and between the CITY OF SAN LUIS OBISPO, a municipal
corporation,hereinafter referred to as City,and KINETICS SYSTEMS,INC.,hereinafter referred to as Contractor.
WITNESSETH:
WHEREAS, the City wants to implement energy conservation measures in City facilities to lessen its
dependence on conventional energy sources.
WHEREAS,the City recognizes the unique nature of contracting for energy management measures.
WHEREAS, the City has utilized the procurement process for contracting for energy management services
offered by the State of California's Department of General Services.
WHEREAS, the City received four competitive proposals to provide energy management services to the
City.
WHEREAS, the selected Contractor is qualified to perform this type of service and has submitted a
proposal to do so which has been accepted by City.
NOW THEREFORE, in consideration of their mutual promises, obligations and covenants hereinafter
contained,the parties hereto agree as follows:
1. TERM. The term of this Agreement shall be from the date this Agreement is made and entered,as
first written above,until acceptance or completion of said services.
2. CITY'S OBLIGATIONS. For providing services as specified in this Agreement, City will pay
and Contractor shall receive therefore compensation in a total sum not to exceed $509,420 for the project
development, preliminary design, project design and detailed engineering phase (Phase I). Upon completion of all
or any portion of Phase I, the Utilities Director will have the sole discretion to make a determination, based on
change in cost and/or feasibility of the project, whether to proceed to the construction phase (Phase II) for any
component of the project. If the determinations is made to proceed, Contractor shall receive compensation for those
components completed, total for all components not to exceed $2,323,472 for construction, and construction and
project management services for Phase II,for a total project cost for both Phase I and II not to exceed$3,019382. If
a determination is made not to proceed with any component of the project, the City will pay for work completed as
of the date the determination is made and there will be no further obligation on the part of either party.
4. CONTRACTOR'S OBLIGATIONS. For and in consideration of the payments and agreements
hereinbefore mentioned to be made and performed by City, Contractor agrees with City to provide services as set
- ISO
ATTACHMENT 2-
Agreement Page 2
Agreement. Contractor further agrees to the contract performance terms as set forth in Exhibit B attached hereto and
incorporated into this Agreement.
5. AMENDMENTS. Any amendment to Phase I or Phase II of the project or, modification or
variation from the terms of this Agreement shall be in writing and shall be effective only upon approval by the City
Administrative Officer of the City.
6. COMPLETE AGREEMENT. This written Agreement, including all writings specifically
incorporated herein by reference, shall constitute the complete agreement between the parties
hereto. No oral agreement, understanding, or representation not reduced to writing and
specifically incorporated herein shall be of any force or effect, nor shall any such oral agreement,
understanding,or representation be bindingupon the parties hereto.
7. NOTICE. All written notices to the parties hereto shall be sent by United States mail, postage
prepaid by registered or certified mail addressed as follows:
City City Clerk
City of San Luis Obispo
990 Palm Street
San Luis Obispo,CA 93401
Contractor Kevin Ray
Kinetics Systems,Inc.
7 Marconi
Irvine,CA 92618
with a copy to: Kinetics Systems,Inc.
Atm Contracts Manager
33225 Western Avenue
Union City,CA 94587
8. AUTHORITY TO EXECUTE AGREEMENT. Both City and Contractor do covenant that each
individual executing this agreement on behalf of each party is a person duly authorized and empowered to execute
Agreements for such parry.
9. GOVERNING LAW. The tetras of this Agreement will be construed and enforced in
accordance with the laws of the California,without regard to conflicts of law doctrine.
ATTACHMENT 2
Agreement Page 3
IN WITNESS WHEREOF, the parties hereto have caused this instrument to be executed the day and year
first above written.
ATTEST: CITY OF SAN LUIS OBISPO,A Municipal Corporation
By:
City Clerk Mayor
APPROVED AS TO FORM: CONTRACTOR KINETICS SYSTEMS,INC.
By:
*tyme
- - ATTACHMENT 2
e=?,J, KINETICS IPA! <<A
Scope of Work
ALLSITES
Kinetics shall provide the City of San Luis Obispo with a complete turnkey modernization
project, as identified in the following detailed site scopes. Kinetics is responsible for the
design, engineering, permits, fees, approvals, project management, installation, startup,
checkout, warranty, insurance and bonding specifically associated with the work to be
performed. Kinetics is not responsible for any existing conditions in the equipment,
systems, controls, comfort problems, balancing, etc. not specifically included in this
agreement.
All work will be completed by Kinetics or by subcontractors mutually agreed upon by both
Kinetics and the City's representative. Kinetics will provide submittals and engineered
drawings(where required), for the City's technical review, prior to initiating construction.
All construction and associated cleanup shall be scheduled so as not to interfere with any
ongoing activities.
Warranty Schedule
New Equipment Term Coverage
Lamps i Year Parts
Ballasts 5 Years Parts
Reflectors io Years Parts
EMS / Controls i Year Parts & Labor
Micro generation Units i Year Parts & Labor
Micro generation Units 3 Years Maintenance Service
Power Correction Devices i Year Parts & Labor
VFD's i Year Parts & Labor
HVAC i Year Parts & Labor
WWTP Blower i Year Parts & Labor
1. Kinetics will coordinate and facilitate all warranty claims with the manufacturer for all
newly installed equipment listed above.
z. Kinetics will provide assurance of replacement parts availability throughout the term of
this agreement.
Scope of Work E-i
ATTACHMENT-2
C� KINETICS Exhibit A
Scope of Installation
Recreation Center
EMS AND-CONTROLS
Install an energy management system (EMS) in the building to include direct
digital control of the newly installed roof mounted package air conditioning
units serving the recreation building. The controls shall include a digital
controller, space .temperature sensor with override and warm/cool
adjustment and interconnection wiring for each package, split system air
conditioning and furnace unit. Provide a modem for communication to the
City's existing operator computer workstation. Provide one-year
manufacturer warranties, commissioning and start-up on all newly installed
equipment.
Scope of work_ E-z
-- MOMENT 2
K I N E T I C S Exhibit A
Scope of Installation
Swim Center
SWIMMING POOL CO-GENERATION
Provide and install a complete co-generation system including associated gas
piping, pool water supply and return piping. The co-generation system
includes two 3okW Capstone type micro turbine generators with high
pressure fuel kit, gas booster pump, heat exchanger, ducting kit, transfer
switch,electric wiring,concrete pad and underground work.
Remove the existing solar hot water panels and above ground piping.
Provide three-year micro turbine service which includes scheduled
maintenance visits, including required maintenance parts. Service also
includes repair service calls and labor during regular business hours. Repair
parts, and overtime labor charges are handled on a time and materials basis
at our published rates.
Scope of Work E-j
1
ATTACHMENT 2
C::� Kl NET ICS ExMbitA
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Scope of Installation
Wastewater Treatment Plant
ELECTRICAL POWER QUALITY
Provide and install power quality correction devices at various nodes, i.e.
motors, motor control centers, etc., on the electrical distribution system to
correct the electrical power factor to between .93 and .97 as measured at the
service entrance section. Included in this scope of work are the engineering
study, electrical work and up to 28 devices calculated to correct the load
factors.
MECHANICAL
BLOWER
Replace one of the existing Lamson aeration blowers with a like-size high
efficiency Turblex model KA5 variable pitch vane blower. The unit installation
shall be designed per the manufacturers guidelines and will include the
following: Turblex blower, motor and oil cooler assembly, new intake filter
and silencer assembly, motorized discharge valve, discharge check valve
assembly, complete instrumentation and controls, remote mounted control
panel (to be located in the motor control building), engineering, complete
installation and system start-up. Provide one-year manufacturer warranties
on all newly installed equipment.
DIGESTER CO-GENERATION
Provide and install a complete 24o kW co-generation system including
associated methane gas piping, hot water supply and return piping. The co-
generation system includes eight 3okW capstone type micro turbine.
generators with sour gas scrubber, gas booster pump, heat exchangers,
ducting kits, transfer switch, electric wiring and concrete pad. Provide and
install a new i,000 Mbtuh high efficiency boiler.
Remove the existing 125 kW methane engine generator, switchgear,
distribution piping, hot water boiler,gas regulator and controls.
Provide three-year micro turbine service which includes scheduled
maintenance visits, including maintenance parts. Service.also includes repair
service calls and labor during regular business hours. Repair parts and
overtime labor charges are handled on a time and materials basis at our
published rates.
Scope of Work E-q
ATTACHMENT 2
C=� K I N E T I C S Exhibit A
.= : • ++-+
TOWER VFD'S
Provide and install three 4o hp variable frequency drives for the discharge
cooling tower fans. The drives shall be located in the motor control building
where the fan motor starters are located. Provide controls to modulate the
fan speed based on the existing plant discharge temperature sensor. The
existing tower circulation pumps, basin level controls and flow control valves
shall remain. The operation of the tower systems shall continue to be
manually started.
LIGHTING
• See attached lighting summary
Scope of Work E-5
ATTACHMEW 2
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Scope of Installation
Water Treatment Plant & Pump Stations
ELECTRICAL
Provide and install power quality correction devices at various nodes, i.e.
motors, motor control centers, etc., on the electrical distribution system to
correct the electrical power factor to between .93 and .97 as measured at the
service entrance section at each of the three pump stations (Santa Margarita,
Whale.Rock and the main plant discharge. Included in this scope of work are
the engineering study, electrical work and up to 25 devices calculated to
correct the load factors. These devices shall not be required at the actual
treatment plant location.
LIGHTING
• See attached lighting summary
Scope of Work E-6
ITTACHMENT 2 Exhibit A
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Exhibit B
ATfACHMEW 2
Exhibit B
CONTRACT PERFORMANCE TERMS
1. Business Tax. Contractor must have a valid City of San Luis Obispo business tax certificate
prior to execution of the contract. Additional information regarding the City's business tax
program may be obtained by calling(805) 781-7134.
2. Ability to Perform. Contractor warrants that it possesses, or has arranged through subcontracts,
all capital and other equipment, labor, materials, and licenses necessary to cant' out and
complete the work hereunder in compliance with any and all federal, state, county, city, and
special district laws, ordinances, and regulations.
3. Laws to be Observed. Contractor 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 the work.
4. Payment of Taxes. The contract prices shall include full compensation for all taxes that
Contractor is required to pay.
5. Permits and Licenses. Contractor shall procure all permits and licenses, pay all charges and
fees,and give all notices necessary.
6. Safety Provisions. Contractor shall conform to the rules and regulations pertaining to safety
established by OSHA and the California Division of Industrial Safety.
7. Public and Employee Safety. Whenever Contractor's operations create a condition hazardous to
the public or City employees, it shall, at its expense and without cost to the City, furnish, erect
and maintain such fences, temporary railings,barricades, lights, signs and other devices and take
such other protective measures as are necessary to prevent accidents or damage or injury to the
public and employees.
8. Preservation of City Property. Contractor shall provide and install suitable safeguards,
approved by the City,to protect City property from injury or damage. If City property is injured
or damaged as a result of Contractor's operations, it shall be replaced or restored at Contractor's
expense. The facilities shall be replaced or restored to a condition as good as when the
Contractor began work.
9. Immigration Act of 1986. Contractor warrants on behalf of itself and all sub-contractors
engaged for the performance of this work that only persons authorized to work in the United
States pursuant to the hrirriigration Reform and Control Act of 1986 and other applicable laws
shall be employed in the performance of the work hereunder.
10. Contractor Non-Discrimination. In the performance of this work,Contractor agrees that it will
not engage in, nor permit such sub-contractors as it may employ, to engage in discrimination in
employment of persons because of age, race, color, sex, national origin or ancestry, sexual
orientation,or religion of such persons.
11. Work Delays. Should Contractor be obstructed or delayed in the work required to be done
hereunder by changes in the work or by any default, act, or omission of the City, or by strikes,
fire, earthquake, or any other Act of God, or by the inability to obtain materials, equipment, or
labor due to federal government restrictions arising out of defense or war programs, then the time
I '00
7RCHMER 2 > ibit B
Exhibit B:Contract Performance Terms Page B-2
of completion will be extended for such periods as may be agreed upon by the City and the
Contractor,but no less than the number of days of the delay.
12. Payment Terms. The City's payment terms are 30 days from the receipt of an original invoice
and acceptance by the City of the services provided by Contractor (Net 30) for Phase I and II
components of the project.
13. Inspection. Contractor shall furnish City with every reasonable opportunity for City to ascertain
that the services of Contractor are being performed in accordance with the requirements and
intentions of this contract. All work done and all materials furnished, if any, shall be subject to
the City's inspection and approval. The inspection of such work shall not relieve Contractor of
any of its obligations to fulfill its contract requirements.
14. Audit. The City shall have the option of inspecting and/or auditing all records and other written
materials used by Contractor in preparing its invoices to City as a condition precedent to any
payment.to Contractor.
15. Interests of Contractor. Contractor covenants that it presently has no interest, and shall not
acquire any interest direct or indirect or otherwise, which would conflict in any manner or degree
with the performance of the work hereunder. Contractor further covenants that, in the
performance of this work,no sub-contractor or person having such an interest shall be employed.
Contractor certifies that no one who has or will have any financial interest in performing this
work is an officer or employee of the City. It is hereby expressly agreed that, in the performance
of the work hereunder, Contractor shall at all times be deemed an independent contractor and not
an agent or employee of the City.
16. Hold Harmless and Indemnification. Contractor agrees to defend, indemnify, protect and
hold the City and its agents, officers and employees harmless from and against any and all
claims asserted or liability established for damages or injuries to any person or tangible
property, including bodily injury to Contractor's employees, agents or officers to the extent
caused by the acts or omissions of Contractor, and its agents, officers or employees, in
performing the work or services herein, and all expenses of investigating and defending
against same;provided, however, that Contractor's duty to indemnify and hold harmless shall
not include any claims or liability arising from the established negligence or willful
misconduct of the City, its agents, officers or employees.
17. Year 2000 Compliance. The Contractor warrants that the goods or services provided to the
City, including those provided through subcontractors, are "Year 2000 compliant." For the
purpose of this contract, "Year 2000 compliant" means that goods or services provided to the
City will continue to fully function, fault-free, before, at and after the Year 2000, without
interruption or human intervention; and if applicable; any data outside of the date range 1990-
1999, including leap years, will be correctly processed in any level of computer hardware or
software, including, but not limited to, microcode, firmware, application programs, files and data
bases. This warranty supersedes all warranty disclaimers or limitations, and all limitations on
liability,otherwise provided by the Contractor.
Upon request by the City,the Contractor will provide the City with a description of its Year 2000
compliance strategy,or statement of why this is not relevant to contract performance.
IE9.1 Exhibit B
Exhibit B:Contract Performance Terms Page B-3
18. Contract Assignment. Neither party shall assign, transfer, convey or otherwise dispose of the
contract, or its right, title or interest, or its power to execute such a contract to any individual or
business entity of any kind without the previous written consent of the other party..
19. Termination.
If, during the term of the contract,the City determines that Contractor is not faithfully abiding by
any term or condition contained herein, the City may notify Contractor in writing of such defect
or failure to perform; which notice must give Contractor a 10 (ten) calendar day notice of time
thereafter in which to perform said work or cure the deficiency.
If Contractor has not performed the work or cured the deficiency within the ten days specified in
the notice, such shall constitute a breach of the contract and the City may terminate the contract
immediately by written notice to Contractor to said effect. Thereafter, neither party shall have
any further duties,obligations,responsibilities or rights under the contract.
In said event, Contractor shall be entitled to the reasonable value of its services performed from
the beginning date in which the breach occurs up to the day it received the City's Notice of
Termination, minus any offset from such payment representing the City's damages from such
breach. "Reasonable value" includes fees or charges for goods or services as of the last
milestone or task satisfactorily delivered or completed by Contractor as may be set forth in the
Agreement payment schedule; compensation for any other work, services or goods performed or
provided by Contractor shall be based solely on the City's assessment of the value of the work-in-
progress in completing the overall workscope.
The City reserves the right to delay any such payment until completion or confirmed
abandonment of the project, as may be determined in the City's sole discretion, so as to permit a
full and complete accounting of costs. In no event, however, shall Contractor be entitled to
receive in excess of the compensation quoted in its proposal.
Additionally, the City reserves the right to terminate the contract upon completion of Phase I or
before as defined in Section 3 "City's Obligations" of the Agreement, if a determination is made
by the Utilities Director not to proceed to Phase II of the project.
20. Ownership of Materials. All original drawings, plan documents and other materials prepared
by or in possession of Contractor as part of the work or services under these specifications shall
become the permanent property of the City, and shall be delivered to the City upon demand,
however, Contractor may retain one (1) copy of such materials for archival purposes only.
Contractor shall retain all common law, statutory and other reserved rights, including copyright,
title, patent, service mark and trade secrets in those instruments of service furnished by them.
Drawings, specifications, and other documents and electronic data are furnished for use solely
with respect to this Agreement. City shall be permitted to retain copies, including reproducible
copies, of the drawings, specifications, and other documents and electronic data furnished by
Contractor for information and reference in connection with the work.
21. Release of Reports and Information. Except as provided in Section 20, any reports,
information, data, or other material given to, prepared by or assembled by Contractor as part of
the work or services under these specifications shall be the property of City, and shall not be
made available to any individual or organization by Contractor without the prior written approval
of the City.
rHM992 Exhibit B
Exhibit B:Contract Performance Terms Page B-4
22. Copies of Reports and Information. If the City requests additional copies of reports,drawings,
specifications, or any other material in addition to what Contractor is required to furnish in
limited quantities as part of the work or services under these specifications, Contractor shall
provide such additional copies as are requested, and City shall compensate Contractor for the
costs of duplicating of such copies at the Contractor's direct expense.
23. Required Deliverable Products. Contractor will provide:
a. Five copies of a final report that addresses each element of the work scope for Phase I
including:
■ Preliminary Design Report
■ Final Design and Engineering Report
• Plans, Specifications and construction documents
Any documents or materials provided by Contractor will be reviewed by City staff and,
where necessary, Contractor will respond to staff comments and make such changes as
deemed appropriate.
b. Complete and approved Special Provisions for construction in accordance with the City
of San Luis Obispo's Public Works Department, Standard Specifications October 2000
edition, in conjunction with the State of California, Department of Transportation
Standard Specifications dated July 1999, upon the decision of the Utilities Director to
proceed to any segment of construction of Phase II projects. Contractor will coordinate
with Public Works and Utilities Department staff during all facets of the construction to
ensure facilities operations are not interrupted.
C. Upon completion of the Phase II of the project, contractor will prepare and submit record
drawings for all construction.
d. When computers have been used to produce materials submitted to the City as a part of
the workscope, Contractor must provide the corresponding computer files to the City,
compatible with the following programs whenever possible:
• Word Processing Word
• Spreadsheets Excel
• Desktop Publishing Coreldraw,Pagemaker
• Computer Aided Drafting(CAD) AutoCad
Computer files must be on 31/2", high-density, write-protected diskettes, formatted for
use on IBM-compatible systems. Each diskette must be clearly labeled and have a
printed copy of the directory.
24. Attendance at Meetings and Hearings. As part of the workscope and included in the contract
price is attendance by the Contractor at up to 2 public meetings to present and discuss its findings
and recommendations. Contractor shall attend as many "working" meetings with staff as
necessary in performing workscope tasks.
25., Insurance. Contractor shall procure and maintain for the duration of the contract insurance
against claims for injuries to persons or damages to property that may arise from or in connection
t - �i
ANIExhibit B
Exhibit B:Contract Performance Terms Page B•5
with the performance of the work hereunder by Contractor, its agents,representatives,employees
or sub-contractors.
a. Minimum scope of insurance. Coverage shall be at least as broad as:
Insurance Services Office Commercial General Liability coverage (occurrence
form CG 0001).
• Insurance Services Office form number CA 0001 (Ed. 1/87) covering
Automobile Liability,code 1 (any auto).
• Workers' Compensation insurance as required by the State of California and
Employer's Liability Insurance.
• Errors and Omissions Liability insurance as appropriate to Contractor's
profession.
b. Minimum limits of insurance. Contractor shall maintain limits no less than:
o General Liability: $1,000,000 per occurrence for bodily injury and property
damage. If Commercial General Liability or other form with a general aggregate
limit is used, either the general aggregate limit shall apply separately to this
project/location.or the general aggregate limit shall be twice the required
occurrence limit.
• Automobile Liability: $1,000,000 per accident for bodily injury and property
damage.
Employer's Liability: $1,000,000 per accident for bodily injury or disease.
• Errors and Omissions Liability: $1,000,000 per occurrence.
C. Deductibles and self-insured retentions. Any deductibles or self-insured retentions
must be declared to and approved by the City. At the option of the City, either; the
insurer shall reduce or eliminate such deductibles or self-insured retentions as respects
the City, its officers, officials, employees and volunteers; or Contractor shall procure a
bond guaranteeing payment of losses and related investigations,claim administration and
defense expenses.
d. Other insurance provisions. The general liability and automobile liability policies are to
contain,or be endorsed to contain,the following provisions:
• The City, its officers, officials, employees, agents and volunteers are to be
covered as insureds as respects: liability arising out of activities performed by or
on behalf of Contractor; products and completed operations of Contractor,
premises owned, occupied or used by Contractor; or automobiles owned, leased,
hired or borrowed by Contractor. The coverage shall contain no special
limitations on the scope of protection afforded to the City, its officers, official,
employees,agents or volunteers.
• For any claims related to this project, Contractor's insurance coverage shall be
primary insurance as respects the City, its officers, officials, employees, agents
and volunteers. Any insurance or self-insurance maintained by the City, its
officers,officials,employees,agents or volunteers shall be excess of Contractor's
insurance and shall not contribute with it.
- 3a
- ' ATTACHMENT2 ESnlb�ts
Exhibit B:Contract Performance Terms Page B-6
• Any failure to comply with reporting or other provisions of the policies including
breaches of warranties shall not affect coverage provided to the City, its officers,
officials, employees,agents or volunteers.
• Contractor's insurance shall apply separately to each insured against whom claim
is made or suit is brought, except with respect to the limits of the insurer's
liability.
• Each insurance policy required by this clause shall be endorsed to state that
coverage shall not be suspended, voided, canceled by either party, reduced in
coverage or in limits except after thirty (30) days' prior written notice by
certified mail,return receipt requested,has been given to the City.
e. Acceptability of insurers. Insurance is to be placed with insurers with a current A.M.
Best's rating of no less than ANN.
f. Verification of coverage. Contractor shall furnish the City with a certificate of
insurance showing maintenance of the required insurance coverage. Original
endorsements effecting general liability and automobile liability coverage required by
this clause must also be provided. The endorsements are to be signed by a person
authorized by that insurer to bind coverage on its behalf. All endorsements are to be
received and approved by the City before work commences.
26. Warranty. Contractor warrants to the City that materials and equipment furnished under the
Agreement will be of good quality and new unless otherwise required or permitted by the.
contract documents, that the work will be free from defects not inherent in the quality required or
permitted for a period of one year from the date of City's acceptance of the work. Work not
conforming to these requirements, including substitutions not properly approved and authorized,
may be considered defective. This warranty excludes remedy for damage or defect caused by
abuse, modifications not executed by Contractor, improper or insufficient maintenance, or
improper operation. Contractor disclaims all implied warranties, including merchantability and
fitness for a particular purpose. City's sole and exclusive remedy under this provision is
Contractor's prompt repair or replacement of the defective work.
27. Conflicts. If any provision in this Exhibit B conflicts with any other provision in the Standard
Specifications or other contract document,the terms contained in this Exhibit B shall prevail.
�-33
CHMEND
K I N ETI C S
e +++
9 Marconi PROPOSAl #AOUOAOOOIF-B
Irvine, CA 92618 DATE October 22, 2002
CUSTOMER: City of San Luis Obispo
879 Morro Street .
San Luis Obispo, CA 93401
SERVICES PROVIDED AT: See Scope of Work, Exhibit A of Attachment 2
for a complete listing of facilities.
SERVICES TO BE PERFORMED: Support Services and Savings Guarantee Agreement
PRICE: $621.00 per month
(SD( HUNDRED AND TWENTY-ONE DOLLARS AND NO
CENTS)
TERM: Services will begin upon completion of the Installation
Agreement and acceptance by the City and continue for a
term of not more than ten (10) years. Successful attainment
of the annually guaranteed savings amount (100% or more)
for a period of three (3) consecutive years shall satisfy all
saving guarantee requirements of this agreement.
This Support Services and Savings Guarantee Agreement and the Attachments listed below shall
constitute the contract (the "Agreement") between the parties only upon signature in the spaces provided
below for the City of San Luis Obispo ("City") and Kinetic Systems, Inc., ("Kinetics"). Only an individual
duty authorized by Kinetics may change, waive, alter or modify this Agreement. Any change, waiver,
alteration, or modification must be in writing and agreed to by the City.
ATTACHMENT A Savings Summary
ATTACHMENT B Occupancy/Historical Load Schedules
ATTACHMENT C Measurement and Verification Plan
Contractor: Customer:
KINETIC SYSTEMS, INC. CITY OF SAN LUIS OBISPO
By: By.
Title: Title:
support services and Savings Guarantee Agreement 1
l- 34
C:-� Kl
see +++++
Date: Date:
Support services and Savings Guarantee Agreement 2
I, 3S
I 1
KINETICS ATTACHMENT 3
0 4}}
see
GENERAL PROVISIONS
1. Signatories to this Agreement represent and warrant that they are empowered to bind each Party
individually and jointly and that they are fully authorized representatives/officers of any corporate
entity and/or political subdivision which is a party to this Agreement.
2. The waiver of any breach of this Agreement by any party hereto shall not constitute a waiver of any
subsequent breach either of the same or of another provision of the Agreement.
3. All covenant, promises and provisions contained in this Agreement are severable, and in the event
that such covenant, promise or provision is held or adjudicated invalid by a Court of competent
jurisdiction, the remainder of this Amendment shall be operative and binding effect.
4. The terms and conditions hereof shall insure to the benefit of and be binding upon the heirs, personal
representatives, and successors of the parties hereto and is non-assignable by any of the parties
hereto unless specifically allowed in this Agreement.
S. This Agreement, and the rights and duties hereunder, shall be interpreted in accordance with the laws
of the.State of California.
6. This Agreement exdudes any applicable State or local sales taxes.
7. Significant modification or customer-initiated termination of the provisions of this Agreement, prior to
the end of the term of this Agreement will void any energy-saving guarantee.
8. This guarantee is proprietary property of IGnetics and is provided for the exclusive use of-CITY. This
guarantee will become binding only after acceptance by The City and Kinetics, as evidenced by their
signatures.
This performance warranty is issued subject to the following exclusions:
e Loss arising from physical damage to energy management or energy consuming equipment, whether sudden
or gradual, including but not limited to fire,explosion, floods, earth movements, and acts of God.
■ Loss arising from mechanical breakdown or energy management or energy consuming equipment NOT
connected to the energy management equipment installed in this project.
e Loss arising from intentional misuse or abuse of any energy managing or energy consuming equipment.
e Loss arising from vandalism, sabotage, malicious mischief, labor slowdown or lockout.
■ Loss arising from change in any law, ordinance, statute or regulation by a legally constituted public authority
occurring after the inception of this guarantee.
s Loss arising from interruption of-any utility service (including but not limited to electricity, gas,
telecommunication, sewer, or water).
■ Loss arising from abandonment or non-use of the equipment in part or in its entirety.
■ Loss arising from failure to repair or maintain the equipment.
Support Services and Savings Guarantee Agreement
3' -
'� 2
KINETICS
R�ACHME��
SUPPORT SERVICES
1. Measurement &Verification
A total of four (4) quarterly Measure and Verification reports per year will be providing to the City. The.
reports will be in executive style 2-3 pages per site. The reports will be customized after input from
the City to determine style and format.
Calendar of Repo InDeliverables
]an Feb Mar Apr Ma ]un Jul Aun I Sep I Oct I Nov Dec
M&V M&V
M&V Customer M&V Customer
Review Review
This report and service include a total of four (4) site visits over the three-year period. This service
consists of two (2) visits during the first year and one (1) site visit each in years two and three. The
first visit is for the initial site visit with City staff and the other three are.for an in person presentation
of the year-end and semi annual report. All other quarterly reports will be reviewed with Kinetics and
City staff via teleconference.
2. Kinetics will coordinate and facilitate all warranty claims with the manufacturer for all newly installed
mechanical equipment.
3. Kinetics will coordinateand facilitate all warranty claims with the manufacturer for all newly installed
control devices.
4. Kinetics will coordinate and facilitate all warranty claims with the manufacturer for all newly installed
lighting devices.
5. Kinetics will provide assurance of replacement parts availability for all newly installed equipment.
throughout the term of this agreement.
6. Kinetics will provide initial training of Staff in the proper operation of all newly installed equipment.
7. The City agrees to furnish safe, reasonable access to the buildings and covered equipment. If
required, the City will remove any material, fixtures or walls, so adequate access can be gained to the
equipment.
8. Liability for repairs, replacements, alterations, additions, adjustments, repairs by others, or
unscheduled calls caused by negligence, abuse, misuse, or vandalism damage beyond Kinetics' control
is not part of this Agreement.
Support Services and Savings Guarantee Agreement 4
_3q
INE CS T I ATTACHMENT 3
+++
PERFORMANCE GUARANTEE
As part of this agreement, Kinetics hereby guarantees the energy and operational savings associated with
the energy conservation measures (ECM's) identified in Attachment E of the Installation Agreement. The
Performance Guarantee will begin upon completion of the installation of the ECM's as required by the
Installation Agreement and continue for the term of this Agreement. During that time the City agrees to
furnish Kinetics with copies of all related monthly utility bills (electric and gas) on a timely basis, not to
exceed fourteen calendar days from receipt of same.
Kinetics will compile the data and present an energy audit on a quarterly basis to the City. As a result of
the Kinetics' program the City will realize energy savings, operational savings and may receive substantial
utility incentives (all documented in Attachment "A" of this agreement). It is agreed that operational
savings are fulfilled upon acceptance of this Agreement.
The Performance Guarantee will be reconciled on an annual basis. During the term of this Agreement,
Kinetics guarantees that program savings and utility incentives will exceed $347,587 annually, subject to
the following conditions:
1. Facility usage and operating schedules will be similar to the 2001 calendar year. Occupancy/historical
load schedule data for 2001, as provided by City staff, are listed in Attachment"B". It is understood by
the City that facility usage or operation outside of the parameters identified in Attachment"B"will affect
annual energy savings. When this occurs, guaranteed savings may need to be adjusted by a mutually
agreed upon amount to reflect the new parameters.
2. The customer agrees that savings which exceed the guaranteed amount in any one (1) year may be
applied to previous or future years savings.
3. Kinetics will follow the International Performance Measurement and Verification Protocol (IPMVP)to
verify the energy savings associated with the EOM's listed in Attachment E of the Installation Agreement.
This protocol is recognized by the National Association of Energy Service Companies(NAFSCO)as the
standard guideline for how savings resulting from energy conservation projects should be measured.
The IPMVP defines four broad options for measurement and verification of energy savings. The
categories are as follows:
Option A Largely stipulated parameters, instantaneous measurements may be incorporated.
Option B Predominately end use measurement techniques, some stipulated parameters are
allowable.
Option C Utility Billing Analysis
Option D Calibrated Building Simulation Analysis
Support Services and Savings Guarantee Agreement 5
� -3g
I
E� KINETICS
AITACNMENT 3
++t
Each option is applicable to specific situations and often times, more than one option is possible. The
table on the following page matches the. ECM's with the IPMVP option to be employed. The
Measurement and Verification Plan (Attachment"C') provides a detailed description of the proposed
M&V protocol for each ECM.
4. Kinetics will monitor the energy audit process and will immediately implement necessary system
enhancements, at Kinetics sole expense, if an individual quarterly audit indicates that an annual savings
shortfall is likely to occur. In the event of a savings shortfall, Kinetics will reimburse the customer
through crediting the service agreement.and/or direct reimbursement.
5. In the.event utility rates increase or decrease, the savings will be adjusted at the same percentage of
change.
6. The City agrees to inform Kinetics of any changes to facility operating conditions such as; adding
equipment, changes to operating schedules or load conditions, adding buildings or increased square
footage. Guaranteed savings will be adjusted by a mutually agreed upon amount to reflect the. new
conditions. '
This guarantee is proprietary property of Kinetics and is provided for the exclusive use of the City. This guarantee
will become binding only after acceptance by the City and Kinetics.
Support Services and savings Guarantee Agreement 6
C=� K IN ET I CS - ATTACHMENT 3
+++
.' eo• ++4
IPMVP OPTION TABLE
Lighting EMS/Controls Energy Cogeneration Power Mechanical
Retrofits Reporting Quality Retrofits
Administration Included
Office
City Hall Included
Fre Station Included
#1
Police Included
Department
Recreation Option B Included
Center _
Swimming Included Option B
Pool Complex
Wastewater
Treatment Option A Included Option B Option C Option B
Plant
Santa --
Margarita Option C
Pumv Station.
Whale Rod( Option C
Pump Station
Water
Treatment Option A Option C
Plant-
Support
Support Services and.Savings Guarantee Agreemen'tL7
C=:� K I N E T I C S
ATTACHMENT 3
.o
+
ATTACHMENT A
SAVINGS SUMMARY
1. ANNUAL ENERGY SAVINGS $337,381
2. LIGHTING OPERATIONAL SAVINGS $206
Annual cost, currently paid by the City, to replace lamps, ballast and bulbs in
facilities scheduled to receive lighting retrofits as part of this program. Ongoing
disposal costs for fluorescent lamps and ballasts will also be reduced or
eliminated at these locations.
3. EQUIPMENT OPERATIONAL SAVINGS $10,000
Annual cost currently paid by the City, to repair the equipment and related
control systems scheduled for replacement as part of this program.
4. ENERGY REBATES AND INCENTIVES $283,700
Anticipated energy conservation incentives paid to the city by PG&E and the
State of California Energy Commission programs.
Support Services and Savings Guarantee Agreement
"i I
KINETICS
��ACHMENT 3
see
ATTACHMENT B
OCCUPANCY/ HISTORICAL LOAD
SCHEDULES
The following tables include daily and hourly occupancy and load data,
as provided by City staff, for the various facilities:
City of San Luis Obispo
Building Usage
Data
2001 Calendar Year
Administration Office
Days Occupied Occupied Hours
Office M-F 7:00 a.m. -4:00 p.m.
Marsh Street Parking
Days Occupied Occupied Hours
7-Days 24 Hour Facility
Palm Street Parking
Days Occupied Occupied Hours
Facility 7-Das 24-Hour Facility
Swimming Pool Complex
Days 0avoied Occupied Hours
Pump 7-Da 24- Hour operation
Boilers 7-Da 24-Hour Operabon
Wastewater Treatment Plant
derating Days Operating Hours
Exterior Lighting 7-Da 24-Hour Facility
Daily MGD Load Average See 2001 Flow&Load Data
Water Treatment Plant
Pump Station 1.Whale Rock&Santa
Margarita
Operating Days Operating Hours
Winter normal shift
Water Treatment Plant 7 Das Summer Off-Peak
Support Services and Savings Guarantee Agreement 9
e
KINETICS
T RCNMENT 3
Pumping Stations See 2001 Flow Data
Support Services and Savings Guarantee Agreement 10
1-43
KINETICS
PCNMENT 3
ATTACHMENT C
MEASUREMENT &
VERIFICATION PLAN
Lighting Retrofits (option A)
Waste Water Treatment Plant and Water Treatment Plant
Lighting systems hours of operation are documented in Attachment "E" of the Installation
Agreement. Upon acceptance of this Agreement; Kinetics will demonstrate and document pre-
retrofit and post-retrofit conditions (amperage, voltage and foot-candle readings) in the presence
of a City representative. Measurement and verification of the Energy Cost Savings (ECS)
associated with the lighting retrofits will be done by the following formulas:
Fixture Quantity x Watts Saved/Fixture x 1kW/1000W x Hours of Operation x $/kWh = Energy
Charge $'s Saved
Fixture Quantity x Watts Saved/Fixture x 1kW/1000W x # of Months/Year x $/kW = Demand
Charge $'s Saved
The savings amount will be a calculated average amount agreed upon with the customer and
applied on a monthly basis to the savings report.
Support Services and Savings Guarantee Agreement 11
IL� K
ATRCHMENT 3
EMS / Controls (Option —A):.
Recreation Center
Measurement and verification of the Energy Cost Savings (ECS) associated with the installation of
direct digital controls (DDC) to reduce runtime of the package air conditioning equipment will be
an Option A. The savings will be from the following formula:
ECS = (HR)(CL)(EC)
Where as:
HR = Hours of reduced runtime from controls, demonstrated with customer.
CL = Full electric load of the package units during cooling and heating.
EC = Cost of energy based upon current tariff from the local utility.
The savings amount will be a calculated average amount agreed upon with the customer and
applied on a monthly basis to the savings report.
Support Services and Savings Guarantee Agreement 12
E=� KINETICS
AFACHMEW 3
+++
Power Factor Correction (Option —C):
Water Treatment Center — Main, Whale Rock & Santa Margarita Pumping
Stations
Wastewater Treatment Plant
Measurement and verification of the Energy Cost Savings (ECS) associated with the installation of
power factor correction devices will be done by cwmparing,the average.Main Meter power factor
during the base year with the average Main Meter power factor after the installation of the
device. The baseline power factor will be taken from the last (12) months of historical utility bills
supplied by Kinetics for the utility meter effected by the retrofit. The current power factor after
the retrofit will be taken from a copy of the utility bill supplied by Kinetics. The power factor will
be the only thing analyzed from the utility bill for this site. The Energy Cost Savings (ECS)
associated with this retrofit is the following:
ECS = (CPF-BPF)(EC)
Where as:
BPF = Average power factor obtained from utility bills over a (12) month time period prior to
the
Installation of the power factor correction devices.
CPF = Current power factor obtained from the current utility bill after retrofit.
EC = Cost associated with power factor correction, based upon current tariff from the utility
This (EC)takes into account only the itemized line item for power correction on the utility billings.
It does not take into account the additional cost savings associated with demand and
consumption reduction that result from bringing the power factor closer to unity, which is
accounted for elsewhere.
support services and Savings Guarantee Agreement 13
i
ATTACHMENT 3
SKI N E T I C S
O ++t
::t +
Onsite Generation (Option !-- B):
Wastewater Treatment Center
Measurement and verification of the Energy Cost Savings (ECS)associated with the installation of
onsite generation will be done by the following formula:
ECS = (MO)(EC)
Where as:
MO = Measured output of onsite generation in electricity published information
EC = Cost of energy based upon current tariff from the local utility
support services and savings Guarantee Agreement 14 'f
C=� KI N E T I C S
ATTACHMENT 3
Aeration Blower Upgrade (Option — B):
Wastewater Treatment Center
Measurement and verification of the Energy Cost Savings (ECS) associated with the installation of
the upgraded blower will be done by installing kWh monitoring equipment. The monitoring will
be installed prior to the energy retrofit to collect pre data of the operation of the existing blower.
This monitored kWh consumption data will be averaged to determine the average load of the
blower motor under the existing constant.speed/flow operation. The savings associated with this
retrofit will than be the following:
ECS = [(PML)(H)—PE](EC)
Where as:
PML = Pre-motor load determined from pre data which is average to find average kW.
H = Hours of blower system prior to retrofit; 24 hours per day per the contract.
PE = Energy used by blower after retrofit from monitored kWh data
EC = Cost of energy based upon current tariff from the local utility
Support services and Savings Guarantee Agreement 15
LN
i
E=� K
ATTACHMENT 3
... +++
VFD's (Option — B):
Waste Water Treatment Center
Measurement and verification of the Energy Cost Savings (ECS) associated with the installation of
the variable frequency drives will be done by installing kWh monitoring equipment on (1) of the
(3) VFD's and then applying the saving results to the (2) remaining VFD's. The monitoring will be
installed prior to the energy retrofit to collect pre data operation of the existing system running at
constant speed. This monitored kWh consumption data will be averaged to determine the
average load of the tower motor under the existing constant speed/flow operation. After the
retrofit the system will be monitored for kWh usage and hours of operation. The monitored
hours of operation will then be applied to the pre-retrofit monitored load to determine the energy
usage for the base period. The savings associated with this retrofit will then be the following
ECS = [(PML)(H)— PE](EC)
Where as:
PML = Pre-motor load determined from pre data which is average to find average kW.
H = Hours of tower fan during current time period from monitored data.
PE = Energy used by blower after retrofit from monitored kWh data
EC = Cost of energy based upon current tariff from the local utility
Support services and Savings Guarantee Agreement 16
SKIN
ET I CS
AT�ACHMEN�
:. +++
see60 kW Cogeneration (Option — B):
Swimming Complex
Measurement and verification of the Energy Cost Savings (ECS) associated with the installation of
the 60 kW cogeneration system will be done by monitoring the electrical and Btu output of the
system. The monitored electrical output less any parasitic loads to operate will be divided by the
total cost of cogeneration gas to determine the post installation unit cost of electricity. The
cogeneration utility bills required to calculate cost of gas will be supplied by the City. This
calculated cost of generated electricity will be subtracted from the cost if this electricity had been
purchased from the utility.
The cost savings associated with the hot water produced from the cogeneration replacing the
need for the boilers to operate will be calculated by multiplying the monitored Btu output used by
the gain in efficiency from eliminating the combustion efficiency. This is the inverse of the
existing boiler efficiency. This quantity is then multiplied by the current cost of gas that would
have been paid if the cogeneration had not.been installed.
The savings associated with the electrical generation will then be the following
ECS = [(NEG)(UC- CG)]
Where as:
NEG = Electricity generated less any parasitic loads for the gas compressor from monitored
total electrical output data.
UC = Unit cost of energy based upon current tariff from the local utility
CG = Unit Cost of electricity generated, which is the total cost of cogeneration gas consumed
divided by NEG from above.
The savings associated with the hot water produced will be the following
ECS = [(HW)(1/BE)(EC)]
Where as:
HW = Amount of hot water produced in Btu's from monitored data.
BE = Efficiency of existing boiler, estimated as 80%.
EC = Cost to produce Btu's if no cogeneration installed, based upon current tariff from the.
local utility.
Support Services and Savings Guarantee Agreement 17
�J V
Attachment 4
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--� Attachment 5
Applicant Acceptance of Mitigation Measures
Project: ER 177-02
900 Southwood Drive
This agreement is entered into by and between the City of Sans Obispo and City of SLO
Utilities Department on the `z day of ) ' , 2002. The
following measures are included in the project to mitigate potential adverse environmental
impacts. Please sign the original and return it to the Community Development Department.
MITIGATION MEASURES:
1. Mitigation for potential noise exposure
Noise from the new equipment, measured at the closest exterior wall of the Southwood
Apartments, shall not exceed 50 decibels energy-equivalent (Leq) between 7 am and 10 pm,
and 45 dB Leq 10 pm to 7 am. It is presumed that this will be achieved by placing the turbine-
generator units in a noise-blocking enclosure, set into the adjacent earth berm, with reflected
noise directed toward the northwest (away from the apartments). The Community Development
Director may approve additional or other, equally effective noise-control measures, as project
design is refined. One option is noise-reducing equipment that can be added to the
cogeneration units.
Monitoring Program
Construction plans will be reviewed by the Community Development Department. During initial
testing of the turbine-generator equipment, Community Development staff will visit the site to
determine if noise is above ambient levels. If it is, noise levels will be measured with an
appropriate device by a qualified person, to determine if the allowed noise level is exceeded. If
the allowed level is exceeded, the Community Development Director will require additional or
alternative noise-control features so the standard is met.
If the Community Development Director or hearing body determines that the above mitigation
measures are ineffective or physically infeasible, he may add, delete or modify the mitigation to
meet the intent of the original measures.
Please note that section 15070 (b) (1) of the California Administrative Code requires the
applicant to agree to the above mitigation measures before the proposed Mitigated Negative
Declaration is released for public review. This project will not be scheduled for public
review and hearing until this signed original is returned to the Community Development
Department.
Michael Draze ohn Moss, City of San Luis Obispo
Deputy Commw- Development Director Utilities Director
Attachment 5
INITIAL STUDY ENVIRONMENTAL CHECKLIST FORM
ER 177-02
1. Project Title: Swim Center Cogeneration Facilities
2. Lead Agency Name and Address: City of San Luis Obispo
990 Palm Street
San Luis Obispo, CA 93401
3. Contact Person and Phone Number: Glen Matteson (805 781-7165)
4. Project Location: Sinsheimer Park Swim Center at 900 Southwood Drive
(see attached illustration)
5. Project Sponsor's Name and Address:City of San Luis Obispo
990 Palm Street
San Luis Obispo, CA 93401
6. General Plan Designation: Recreation
7. Zoning: Public Facility (PF)
8. Description of the Project:
The project objective is to increase efficiency and reduce costs for energy used
to heat the municipal swimming pool. The objective would be met by installing
and operating two natural-gas-fueled, 30-kilowatt microturbine generators and
associated equipment. The turbine generators would be located in an enclosure
about eight feet on each side, east of the existing pool equipment building.
Underground pipes would connect the generators to the equipment building. The
generators would run continuously, producing heated water for the pool and
electricity for on-site equipment.
9. Surrounding Land Uses and Setting:
• To the north: swimming pool, and an elementary school playground and
assembly building.
• To the west: a parking lot and a community park.
• To the east: a creek, a park, and a recreation building.
• To the south: a school-bus storage and maintenance yard, a creek, a road,
and an apartment complex.
I -S3
Attachment 5
10: Project Entitlements Requested:
The project concept and funding are subject to approval by the City Council.
Project details would be subject to approval by the director of the City's Utilities
Department. The turbine enclosure would be subject to minor/incidental
architectural review.
11. Other public agencies whose approval is required: None.
ENVIRONMENTAL FACTORS POTENTIALLY AFFECTED:
The environmental factors checked below would be potentially affected by this project,
involving at least one impact. that is a "Potentially Significant Impact" as indicated by the
checklist on the following pages.
Aesthetics Geology/Soils Public Services
Agricultural Resources Hazards & Hazardous Recreation
Materials
Air Quality Hydrology/Water Quality Transportation &Traffic
Biological Resources Land Use and Planning Utilities and Service
Systems
Cultural Resources Noise Mandatory Findings of
Significance
Energy and Mineral Population and Housing
Resources �
I
Attachment 5
CALIFORNIA FISH & GAME FEES DETERMINATION:
There is no evidence before the Department that the project will have any potential adverse
X ' effects on fish and wildlife resources or the habitat upon which the wildlife depends.Therefore,
the project qualifies fora de minimis waiver with regards to the filing of Fish and Game Fees.
The project has potential to impact fish and wildlife resources and shall be subject to the payment of
Fish and Game fees pursuant to Section 711.4 of the California Fish and Game Code.This initial study
has been circulated to the California Department of Fish and Game for review and comment.
CEQA DETERMINATION:
On the basis of this initial evaluation:
I find that the proposed project COULD NOT have a significant effect on the environment, and a
NEGATIVE DECLARATION will be prepared.
I find that although the proposed project could have a significant effect on the environment, there will X
not be a significant effect in this case because revisions in the project have been made, or the
mitigation measures described on an attached sheet(s) have been added and agreed to by the project
proponent. A MITIGATED NEGATIVE DECLARATION will be prepared.
I find that the proposed project MAY have a significant effect on the environment, and an
ENVIRONMENTAL IMPACT REPORT is required.
I find that the proposed project MAY have a "potentially significant" impact(s) or "potentially significant
unless mitigated" impact(s) on the environment, but at least one effect (1) has been adequately
analyzed in an earlier document pursuant to applicable legal standards, and (2) has been addressed by
mitigation measures based on the earlier analysis as described on attached sheets. An
ENVIRONMENTAL IMPACT REPORT is required, but it must analyze only the effects that remain to be
addressed
I find that although the proposed project could have a significant effect on the environment, because all
potentially significant effects (1) have been analyzed adequately in an earlier EIR or NEGATIVE
DECLARATION pursuant to applicable standards, and (2) have been avoided or mitigated pursuant to
that earlier EIR of NEGATIVE DECLARATION, including revisions or mitigation measures that are
imposed upon the proposed project, nothing further is required.
/llO v 19. .2 vv2
Signature Date
Michael Draze, Deputy Director
for: John Mandeville, Community Development Director
Initial Study Checklist Page 3
[-5S
Attachment 5
EVALUATION OF ENVIRONMENTAL IMPACTS:
1. A brief explanation is required for all answers except "No Impact" answers that are adequately supported
by the information sources a lead agency cites in the analysis in each section. A "No Impact" answer is
adequately supported if the referenced information sources show that the impact simply does not apply to
projects like the one involved (e.g. the project falls outside a fault rupture zone). A "No Impact" answer
should be explained where it is based on project-specific factors as well as general standards (e.g. the
project will not expose sensitive receptors to pollutants, based on a project-specific screening analysis).
2. All answers must take account of the whole action involved, including off-site as well as on-site,
cumulative as well as project-level, indirect as well as direct, and construction as well as operational
impacts. The explanation of each issue should identify the significance criteria or threshold, if any, used to
evaluate each question.
3. "Potentially Significant Impact' is appropriate if there is substantial evidence that an effect is significant. If
there are one or more "Potentially Significant Impact" entries when the determination is made, an EIR is
required.
4. "Potentially Significant Unless Mitigation Incorporated" applies where the incorporation of mitigation
measures has reduced an effect from "Potentially Significant Impact" to a "Less than Significant Impact."
The lead agency must describe the mitigation measures, and briefly explain how they reduce the effect to
a less than significant level (mitigation measures from Section 17, "Earlier Analysis," may be cross-
referenced).
5. Earlier analysis may be used where, pursuant to the tiering, program EIR, or other CEQA process, an
effect has been adequately analyzed in an earlier EIR or negative declaration. Section 15063 (c) (3) (D) of
the California Administrators Code. Earlier analyses are discussed in Section 17 at the end of the
checklist.
6. Lead agencies are encouraged to incorporate into the checklist references to information sources for
potential impacts (e.g. general plans, zoning ordinances). Reference to a previously prepared or outside
document should, where appropriate, include a reference to the page or pages where the statement is
substantiated.
7. Supporting Information Sources: A source list should be attached, and other sources used or individuals
contacted should be cited in the discussion. In this case, a brief discussion should identify the following:
a) Earlier Analysis Used. Identify and state where they are available for review.
b) Impacts Adequately Addressed. Identify which effects from the above checklist were within the scope
of and adequately analyzed in an earlier document pursuant to applicable legal standards, and state
whether such effects were addressed by mitigation measures based on earlier analysis.
c) Mitigation Measures. For effects that are "Less than Significant with Mitigation Measures
Incorporated," describe the mitigation measures which were incorporated or refined from the earlier
document and the extent to which they address site-specific conditions for the project.
Initial Study Checklist Page 4
i -
Attachment 5
Issues and Supporting Information Sources Sources Potentially Less Than Less Than No
Significant Significant Significant Impact
Impact With impact
ER# 177-02 Mitigation
Incorporated
1.AESTHETICS. Would theproject:
a) Have a substantial adverse effect on a scenic vista? X
b) Substantially damage scenic resources, including, but not
limited to,trees, rock outcroppings, open space,and X
historic buildings within a local or state scenic highway?
c) Substantially degrade the existing visual character or X
quality of the site and its surroundings?
d) Create a new source of substantial light or glare which X
would adversely effect day or ni httime views in the area?
The turbine enclosure would not be visible from off the site. It will be minimally visible from the pool service area,
and will be subject to architectural review.
2.AGRICULTURAL RESOURCES. Would theproject:
a) Convert Prime Farmland, Unique Farmland,or Farmland
of Statewide Importance(Farmland), as shown on the
maps pursuant to the Farmland Mapping and Monitoring X
Program of the Califomia Resources Agency,to non-
agricultural use?
b) Conflict with existing zoning for agricultural use,or a X
Williamson Act contract?
c) Involve other changes in the existing environment which, X
due to their location or nature,could result in conversion of
Farmland,to non-a ricuttural use?
The project will not affect agricultural land.
3. AIR QUALITY. Would theproject:
a) Violate any air quality standard or contribute substantially 1 X
to an existing or projected air quality violation?
b) Conflict with or obstruct implementation of the applicable 1 X
air quality plan?
c) Expose sensitive receptors to substantial pollutant 1 X
concentrations?
d) Create objectionable odors affecting a substantial number X
of people?
e) Result in a cumulatively considerable net increase of any 1 X
criteria pollutant for which the project region is non-
attainment under an applicable federal or state ambient air
quality standard (including releasing emissions which
exceed qualitative thresholds for ozone precursors)?
The equipment has a capacity below the threshold requiring review by the Air Pollution Control District, and is not
expected to increase emissions above current levels from the natural-gas fueled boiler. (The solar water-heating
equipment previously used for the pool has been disconnected for several years.) Localized emission
concentrations warrant consideration because of the nearby dwellings, school, and recreational uses.The turbines
are described as producing a relatively low-pollution, high-oxygen exhaust that can be used in some direct-heating
applications.Therefore,the project is not expected to adversely affect those living nearby or visiting the site.
4. BIOLOGICAL RESOURCES. Would the ro'ect:
a) Have a substantial adverse effect,either directly or
indirectly or through habitat modifications, on any species
identified as a candidate, sensitive,or special status X
species in local or regional plans, policies,or regulations,
or by the California Department of Fish and Game or U.S.
Fish and Wldlife Service?
Initial Study Checklist Page 5
1 -S'l
Attachment 5
Issues and Supporting Informai.. i Sources Sources Po. .ally Less Than Less Than No
Significant Significant Significant Impact
Impact With Impact
ER # 177-02 Mitigation
Incorporated
b) Have a substantial adverse effect, on any riparian habitat
or other sensitive natural community identified in local or
regional plans, policies, or regulations,or by the California X
Department of Fish&Game or U.S.Fish&Wildlife Service?
c) Conflict with any local policies or ordinances protecting
biological resources, such as a tree preservation policy or X
ordinance(e.g.Heritage Trees)?
d) Interfere substantially with the movement of any native
resident or migratory fish or wildlife species or with X
established native resident or migratory wildlife corridors,
or impede the use of wildlife nursery sites?
e) Conflict with the provisions of an adopted habitat
Conservation Plan, Natural Community Conservation Plan, X
or other approved local, regional,or state habitat
conservation plan?
f) Have a substantial adverse effect on Federally protected
wetlands as defined in Section 404 of the Clean Water Act
(including,but not limited to, marshes,vernal pools,etc.) X
through direct removal,filling, hydrological interruption, or
other means?
Theequipment would not affect wildlife habitat, including the creek that is on the opposite side of the berm.
5. CULTURAL RESOURCES. Would theproject:
a) Cause a substantial adverse change in the significance of X
a historic resource? (See CEQA Guidelines 15064.5)
b) Cause a substantial adverse change in the significance of
an archeological resource? (See CEQA Guidelines X
15064.5)
c) Directly or indirectly destroy a unique paleontological X
resource or site or unique geologic feature?
d) Disturb any human remains, including those interred X
outside of formal cemeteries?
The site has been developed with its present uses for 25 years.
6. ENERGY AND MINERAL RESOURCES. Would the project:
a) Conflict with adopted energy conservation plans? X
b) Use non-renewable resources wastefully or inefficiently? X
c) Result in the loss of availability of a known mineral
resource that would be of value to the region and the X
residents of the State?
The project would use a fossil fuel more efficiently. The alternatives of solar water heating and photovoltaics have
been evaluated and rejected as not cost-effective at this time. The slope bank north of the pool would be
maintained for possible replacement solar installation in the future.
7. GEOLOGY AND SOILS Would theproject:
a) Expose people or structures to potential substantial
adverse effects,including risk of loss, injury or death
involving:
I. Rupture of a known earthquake fault,as delineated in
the most recent Alquist-Priolo Earthquake Fault
Zoning Map issued by the State Geologist for the area, X
or based on other substantial evidence of a known
fault?
initial Study Checklist Page 6
-4 g
Attachment 5
Issues and Supporting Information Sources Sources I Potentially Less Than Less Than No
Significant Significant Significant Impact
Impact With Impact
ER# 177-02 Mitigation
Incorporated
Il. Strong seismic ground shaking? X
111. Seismic related ground-failure,including liquefaction? X
IV. Landslides or mudflows? X
b) Result in substantial soil erosion orthe loss of topsoil? X
c) Be located on a geologic unit or soil that is unstable, or
that would become unstable as a result of the project, and X
potentially result in on-site or off-side landslides, lateral
spreading, subsidence, liquefaction,or collapse?
d) Be located on expansive soil,as defined in Table 18-1-B
of the Uniform Building Code(1994),creating substantial X
risks to life or propertyl
Standard building code requirements will adequately mitigate soil and geologic risks.
8. HAZARDS AND HAZARDOUS MATERIALS. Would the project:
a) Create a significant hazard to the public or the
environment though the routine use,transport or disposal X
of hazardous materials?
b) Create a significant hazard to the public or the
environment through reasonably foreseeable upset and X
accident conditions involving the release of hazardous
materials into the environment?
c) Emit hazardous emissions or handle hazardous or acutely
hazardous materials, substances,or waste within one- X
quarter mile of an existing or proposed school?
d) Expose people or structures to existing sources of
hazardous emissions or hazardous or acutely hazardous X
materials, substances,or waste?
e) Be located on a site which is included on a list of
hazardous materials sites compiled pursuant to
Government Code Section 65962.5 and,as a result, it X
would create a significant hazard to the public or the
environment?
f) For a project located within an airport land use plan, or
within two miles of a public airport,-would the project result X
in a safety hazard for the people residing or working in the
project area?
g) Impair implementation of,or physically interfere with,the
adopted emergency response plan or emergency X
evacuation plan?
h) Expose people or structures to a significant risk of loss,
injury,or death,involving wildland fires,including where X
wildlands are adjacent to urbanized areas or where
residents are intermixed with wildlands?
The turbines would be fueled by relatively clean and safe natural gas. The turbines do not require lubricants or
cooling fluids other than water).
9. HYDROLOGY AND WATER QUALITY. Would the project.
a) Violate any water quality standards or waste discharge X
requirements?
b) Substantially deplete groundwater supplies or interfere
substantially with groundwater recharge such that there
would be a net deficit in aquifer voluime or a lowering of the X
local groundwater table level(for example.the production
rate of pre-existing nearby wells would drop to a level
which would not support existing land uses for which
units have been ?
Initial Study Checklist Page 7
I `J I
Attachment 5
Issues and Supporting Informath.,,Sources Sources Pot, Ally Less Than Less Than No
Significant Significant Significant ltnpact
Impact With Impact
ER # 177-02 Mitigation
Incorporated
c) Create or contribute runoff water that would exceed the
capacity of existing or planned storm-water drainage X
systems or provide substantial additional sources of
polluted runoff?
d) Substantially after the existing drainage pattern of the site X
or area in a manner that would result in substantial erosion
or siltation onsite or offsite?
e) Substantially after the existing drainage pattern of the site
or area in a manner that would result in substantial X
flooding onsite or offsite?
f) Place housing within a 100-year flood hazard area as
mapped on a Federal Flood Hazard Boundary or Flood X
Insurance Rate Map or other flood hazard delineation
map?
g) Place within a 100-year flood hazard area structures which X
would impede or redirect flood flows?
h Otherwise substantial) degrade water ual IX
Previous sketch plans were ambiguous as to the effect of the turbines' location on the existing minor drainage
Swale at the toe of the berm. Setting the enclosure into the berm will avoid the Swale.
10. LAND USE AND PLANNING. Would theproject:
a) Conflict with applicable land use plan, policy, or regulation
of an agency with jurisdiction over the project adopted for X
the purpose of avoiding or mitigating an environmental
effect?
b) Physically divide an established community? X
c) Conflict with any applicable habitat conservation plan or X
natural community conservationplans?
See discussion of Aesthetics #1 and Noise (#11).
11. NOISE. Would the project result in:
a) Exposure of people to, or generation of,"unacceptable"
noise levels as defined by the San Luis Obispo General 2 X
Plan Noise Element,or general noise levels in excess of
standards established in the Noise Ordinance?
b) A substantial temporary, periodic,or permanent increase
in ambient noise levels in the project vicinity above levels 2 X
existing without the project?
c) Exposure of persons to or generation of excessive X
groundbome vibration or groundbome noise levels?
d) For a project located within an airport land use plan, or
within two miles of a public airport or public use airport,
would the project expose people residing or working in the X
roiect area to excessive noise levels?
Project construction will result in minor, short-term, day-time noise exposure,which is expected to be within
acceptable levels.
Project operation has the potential to exceed the City's General Plan standard for stationary sources and noise-
sensitive land uses, which is 50 decibels energy-equivalent(dB Leq) between 7 am and 10 pm, and 45 dB Leq
from 10 pm to 7 am.The turbine-generator sets may produce up to 88 dB measured at the units, and up to 65 dB
at a distance of 33 feet.This noise production would occur continuously, at a pitch somewhat higher then the
existing heaters and pumps at the pool. Existing apartments are located about 200 feet away. No other noise-
sensitive uses are located or proposed closer than the apartments.A noise-blocking wall is expected to reduce the
noise level by 10 dB.The additional distance to the apartments themselves is expected to reduce the noise level
by another 10 dB. The result would be a noise exposure of 45 dB.The General Plan standard actually refers to
residential property lines.The apartment-site property comer,the closest point to the proposed equipment
location, is about 135 feet from the equipment, and located in a creek channel that is below the level of
Initial Study Checklist Page 8
r-Uo
Attachment 5
Issues and Supporting Information Sources Sources Potentially Less Than Less Than No
Significant Significant Significant Impact
Impact With Impact
ER# 177-02 Mitigation
Incorporated
surrounding ground. Active outdoor uses areas are located on the side of the apartment buildings away from the
pool.The overall conclusion is that noise exposure would comply with the General Plan standard, with the
following mitigation:
Noise from the new equipment, measured at the closest exterior wall of the Southwood Apartments, shall not
exceed 50 decibels energy-equivalent (Leq) between 7 am and 10 pm, and 45 dB Leq 10 pm to 7 am. It is
presumed that this will be achieved by placing the turbine-generator units in a noise-blocking enclosure, set into
the adjacent earth berm, with reflected noise directed toward the northwest (away from the apartments). The
Community Development Director may approve additional or other, equally effective noise-control measures, as
ro ect design is refined. One option is noise-reducinq equipment that can be added to the cogeneration units.
12 POPULATION AND HOUSING. Would theproject:
a) Induce substantial population growth in an area, either
directly (for example by proposing new homes or X
businesses) or indirectly (for example, through extension
of roads or other infrastructure)?
b) Displace substantial numbers of existing dwellings or X
people, necessitating the construction of replacement
housina elsewhere?
The promect will not affect population or housing.
13. PUBLIC SERVICES. Would the project result in substantial adverse physical impacts associated with
the provision of,or need for, new or physically altered government facilities,the construction of
which could cause significant environmental impacts, in order to maintain acceptable service ratios,
response times, or other performance objectives for ani F of the public services:
a) Fire protection? X
b) Police protection? X
c) Schools? X
d) Parks? X
e) Roads and other transportation infrastructure? X
Other public facilities? X
The project will not increase demand for public services.
14. RECREATION. Would theproject:
a) Increase the use of existing neighborhood or regional parks
or other recreational facilities such that substantial physical X
deterioration of the facility would occur or be accelerated?
b) Include recreational facilities or require the construction or
expansion of recreational facilities,which might have an X
adverse ph ical effect on the environment?
The project will not affect recreation.
15. TRANSPORTATIONITRAFFIC. Would theproject:
a) Cause an increase in traffic that is substantial in relation to X
the existing traffic load and capacity of the street system?
b) Exceed,either individually or cumulatively, a level of
service standard established by the county congestion X
management agency for designated roads and highways?
c) Substantially increase hazards due to design features(e.g.
sharp curves or dangerous intersections)or incompatible X
uses(e.g.farm equipment)?
d) Result in inadequate emergency access? X
e) Result in inadequate parking capacity onsite or offsite? X
f) Conflict with adopted policies supporting aftemative X
transportation (e.g. bus tumouts,bicycle racks)?
g) Conflict with the San Luis Obispo County Airport Land Use
Plan resulting in substantial safety risks from hazards, X
noise or a chan a in air traffic ttems?
The project will not affect transportation.
Initial Study Checklist Page 9
1 -(.D i
Attachment 5
Issues and Supporting Informat,,,,i Sources Sources Pot, dly Less Than Less Than No
Significant Significant Significant Impact
ER # 177-02 Impact with Impact
Mitigation
Incorporated
16.UTILITIES AND SERVICE SYSTEMS. Would theproject:
a) Not meet wastewater treatment standards of the X
applicable Regional Water Quality Control Board?
b) Require or result in the construction or expansion of new
water treatment,wastewater treatment, or storm drainage X
facilities,the construction of which could cause significant
environmental effects?
c) Have sufficient water supplies available to serve the
project from existing entitlements and resources, or are X
new and expanded water resources needed?
d) Result in a determination by the wastewater treatment
provider which serves or may serve the project that it has X
adequate capacity to serve the project's projected demand
and addition to the providers existing commitment?
e) Be served by a landfill with sufficient permitted capacity to X
accommodate the project's solid waste disposal needs?
f) Comply with federal,state,and local statutes and X
reaulations related to solid waste?
The project will have a small beneficial impact on utilities.
17. MANDATORY FINDINGS OF SIGNIFICANCE.
a) Does the project have the potential to degrade the quality
of the environment, substantially reduce the habitat of a
fish or wildlife species,cause a fish or wildlife population to
drop below self-sustaining levels,threaten to eliminate a X
plant or animal community, reduce the number or restrict
the range of a rare or endangered plant or animal or
eliminate important examples of the major periods of
Califomia history or prehistory7.
The project will have no impact on wildlife or habitat.
b) Does the project have impacts that are individually limited,
but cumulatively considerable? ("Cumulatively X
considerable" means that the incremental effects of a
project are considerable when viewed in connection with
the effects of the past projects,the effects of other current
projects,and the effects of probable future ro ects
The City also proposes a microturbine cogeneration project at its Water Reclamation Facility near Highway 101 at
Prado Road. That project is proposed to be categorically exempt from environmental review, in part because it will
make use of methane, a by-product of the sewage treatment process, to supply electrical energy to the facility,
and result in lower overall energy consumption and emissions.
c) Does the project have environmental effects which will
cause substantial adverse effects on human beings,either X
directly or indirectly?
Impacts to aesthetics,air quality, and noise will be avoided or reduced to acceptable levels.
Initial Study Checklist Page 10
-(Pa.
Attachment 5
18. EARLIER ANALYSES.
Earlier analysis may be used where, pursuant to the tiering, program EIR, or other CEQA process, one or more
effects have been adequately analyzed in an earlier EIR or Negative Declaration. Section 15063 (c) (3) (D). In
this case a discussion should identify the followin items:
a Earlier analysis used. Identify earlier analyses and state where they are available for review.
This initial study does not rely on earlier analysis.
b) Impacts adequately addressed. Identify which effects from the above checklist were within the scope of and
adequately analyzed in an earlier document pursuant to applicable legal standards, and state whether such
effects were addressed by mitigation measures based on the earlier analysis.
c) Mitigation measures. For effects that are "Less than Significant with Mitigation Incorporated," describe the
mitigation measures which were incorporated or refined from the earlier document and the extent to which
they address site-specific conditions of the project.
19. SOURCE REFERENCES
1 Dean Carlson, San Luis Obispo County Air Pollution Control District, correspondence, November 12,2002.
2 General Plan Noise Element and Noise Guidebook, City of San Luis Obispo, May 1996.
20. MITIGATION MEASURES & MONITORING PROGRAM
1 Mitigation for potential noise exposure
Noise from the new equipment, measured at the closest exterior wall of the Southwood Apartments,
shall not exceed 50 decibels energy-equivalent (Leq) between 7 am and 10 pm, and 45 dB Leq 10 pm
to 7 am. It is presumed that this will be achieved by placing the turbine-generator units in a noise-
blocking enclosure, set into the adjacent earth berm, with reflected noise directed toward the northwest
(away from the apartments). The Community Development Director may approve additional or other,
equally effective noise-control measures, as project design is refined. One option is noise-reducing
equipment that can be added to the cogeneration units.
e Monitoring Program:
Construction plans will be reviewed by the Community Development Department. During initial testing
of the turbine-generator equipment, Community Development staff will visit the site to determine if
noise is above ambient levels. If it is, noise levels will be measured with an appropriate device by a
qualified person, to determine if the allowed noise level is exceeded. If the allowed level is exceeded,
the Community Development Director will require additional or altemative noise-control features so the
standard is met.
Uconserva\cogen_ies.doc
Initial Study Checklist Page 11
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