San Diego will retrofit 40 aging city facilities and nearly 40,000 streetlights to make them more climate-friendly under a new $112 million contract that requires no up-front investment. Private contractor Wildan Energy Services will complete all the retrofit projects during the next two years and g et paid back slowly by the city from millions in savings achieved with lower energy bills. San Diego officials are hailing the deal as a clever way for the cash-strapped city to move toward its climate goals, which include having all city buildings produce net-zero greenhouse gas emissions by 2035. But the deal may temporarily require full or partial closures of some popular city facilities, including 16 library branches, 16 recreation centers and four municipal pools. And the city’s independent budget analyst says the plan also comes with some financial risks. The 25-year deal is projected to be cost-neutral for the city if electricity costs rise an average of 3.75% per year over the deal’s life. If costs rise less than that, the savings won’t be enough to cover the city’s payments to the contractor. Other risks include that the deal relies on $8 million in federal tax credits for 15 solar projects included in the contract. But the IBA notes that there is no guarantee the city will secure those tax credits. “While staff have attempted to mitigate against these risks, they exist and should be carefully weighed against potential benefits,” IBA analyst Jordan More said in an eight-page analysis of the deal. City officials point out that there are also risks to not making the deal, which the City Council unanimously approved in late January. “There’s a financial risk to the city to continue to operate completely old systems, roofs that are caving in, and buildings that haven’t been maintained,” Councilmember Marni von Wilpert said. The deal also helps the city meet its climate goals and avoid paying upfront costs for millions in deferred maintenance needed in many older buildings. “The contract advances climate and sustainability goals, which is something we desperately need, while improving the performance of existing infrastructure,” Councilmember Sean Elo-Rivera said. Councilmember Jennifer Campbell said she’s optimistic. “I think it sounds overall like a good fit for the city and a good risk to take,” she said. “I believe in the long run of 25 years it’s really going to end up saving us.” The deal calls for 23 of the 40 buildings to become fully electrified. It will also remove 100 separate gas-burning systems, including HVACs — heating and air-conditioning systems — as well as water heaters and transformers. The facilities range in size from the City Heights Recreation Center at 5,000 square feet to the downtown Central Library at 492,000 square feet. The city prioritized facilities in lower-income areas it calls “communities of concern” when choosing which buildings to retrofit. One key project is a new roof and HVAC system for the city’s Ridgehaven Green building in Serra Mesa. The office building was the first in the nation to earn a federal “energy star” designation when it was completed in 1999, but it needs work to stay climate-friendly. Other projects include the Miramar Operations Yard and two police stations — central and northwestern. The four pools that will get new pumps are City Heights, Kearny Mesa, Vista Terrace and Tierrasanta. The library branches are Carmel Mountain Ranch, Carmel Valley, downtown, City Heights, Rolando, La Jolla, Linda Vista, Logan Heights, Malcolm X, Mira Mesa, Mission Valley, North University, Otay Mesa-Nestor, Pacific Beach, Rancho Bernardo and University Heights. The recreation centers affected are Canyonside, Carmel Mountain Ranch, Cesar Chavez, City Heights, Colina Del Sol, Doyle, Encanto, Kearny Mesa, Linda Vista, Morley Field, Mountain View, Nobel, North Park, Scripps Ranch, Tierrasanta and Vista Terrace. More, the IBA analyst, said the speed of the retrofits will make the need for full closures more likely. “There is an aggressive construction timeline on this project of 18 to 24 months,” More said. “This could require some city facilities to temporarily close.” ...read more read less