Title
title
Re: Guaranteed Energy Savings Performance Contract with Schneider Electric Buildings Americas, Inc., (Schneider) in Amount of Approximately $73,000,000 for San Jose Creek Water Reclamation Plant (SJCWRP) Stage III Process Air Compressor Replacement and Aeration Process Upgrades (Project)
(a) Hold Public Hearing to Adopt Necessary Findings in Accordance with California Government Code 4217 for Approval of Contract
(b) Approve and Order Executed Contract; Authorize Chief Engineer and General Manager to Execute Any Additional Documents Necessary to Effectuate Contract
(c) Order Secretary to Review Insurance and Surety Bonds for Performance and Payment and, if Sufficient, Sign Contract Evidencing Approval of Bonds and Insurance
(d) Adopt Resolution Establishing its Intention to be Reimbursed for Expenditures Related to Project
end
body
Summary: In January 2024, the Board authorized the District to enter into an Engineering Services Agreement with Schneider to produce an Investment Grade Audit Report (Report) for the SJCWRP. Schneider has completed the Report and identified energy conservation measures (ECMs) that will not only result in energy savings but will improve reliability by addressing needed improvements and replacing equipment nearing the end of its useful life. The ECMs identified include replacement of the process air compressors and air diffusers with more energy-efficient equipment, as well as other related infrastructure modifications. The total price for Schneider to complete the design, construction, and implementation of these ECMs is approximately $73,000,000, a guaranteed maximum price, with project completion anticipated in December 2028. The anticipated energy and operational cost savings associated with this project are guaranteed by Schneider, and the District is expected to recover the capital cost in approximately 20 years. In accordance with California Government Code 4217, the Board must hold a public hearing to adopt necessary findings and approve the guaranteed energy savings performance contract with Schneider. Staff has determined that the Project is exempt or otherwise not subject to the provisions of the California Environmental Quality Act (CEQA) pursuant to California Public Resources Code Section 21084 and Title 14 of the California Code of Regulations (“CEQA Guidelines”) Sections 15301, 15302, and 15303. The proposed resolution, which is attached, declares the District’s intent to seek reimbursement for certain expenditures if bonds are issued for the Project. The resolution action does not commit the District to issue bonds; it identifies the intended use of bond proceeds and expands the timeframe for when expenditures could be reimbursed. This item is consistent with the Districts’ Guiding Principle of commitment to operational excellence (protection of public health and the environment, regulatory compliance, and cost effectiveness).
end