HomeMy WebLinkAboutReso 2017-227RESOLUTION NO. 2017-227
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA APPROVING AN ENERGY SERVICE
CONTRACT WITH JOHNSON CONTROLS, INC.
WHEREAS, Government Code section 4217.12 authorizes cities to enter into energy
service contracts with any person or entity, pursuant to which that person or entity will provide
energy or conservation services to the city, if the anticipated cost to the city for conservation
services provided under the contract is less than the anticipated marginal cost to the city of
energy that would have been consumed by the city in the absence of the energy service contract;
and
WHEREAS, Government Code section 4217.16 provides that a public entity entering
into an energy service contract may do so by requesting proposals from qualified persons and
awarding the contract based on the experience of the contractor, the type of technology
employed by the contractor, the cost to the local agency, and any other relevant considerations;
and
WHEREAS, the City of Chula Vista ("City") utilized an informal competitive Request
for Qualifications ("RFQ") process consistent with Section 4217.16 to solicit proposals to
implement a comprehensive alternative energy program for the City through the installation of
solar equipment and related improvements to provide alternative energy to the City and to
guarantee certain energy cost savings to the City; and
WHEREAS, City staff reviewed the qualifications of the companies submitting responses
to the RFQ and selected Johnson Controls, Inc. ("Johnson") as the entity best suited to
implement a comprehensive alternative energy program for the City; and
WHEREAS, the Purchasing Agent approved the purchasing process by which Johnson
was selected as being consistent with good purchasing practices and has determined that the
City's interests were materially better served by using such process, and, accordingly, the City
Council waives the City's competitive bidding requirements, pursuant to Chula Vista Municipal
Code section 2.56.070.B.3; and
WHEREAS, Johnson conducted an assessment of City sites and facilities for the location
of solar energy equipment and analyzed the potential energy cost savings to be realized by the
City from the installation of such equipment; and
WHEREAS, to determine the potential energy cost savings Johnson requested and was
provided with electrical usage data from the City and San Diego Gas and Electric Company; and
WHEREAS, Johnson has presented to the City for approval a Performance Contract (the
"Energy Service Contract") pursuant to which it will supply the solar energy equipment
described therein to the City and certain energy services described therein and will provide a
performance guarantee to reduce energy costs to the City; and
Resolution No. 2017-227
Page No. 2
WHEREAS, Johnson has advised the City of its conclusion that the cost of the purchase
of the solar energy equipment and related improvements pursuant to the Energy Service Contract
will be less than the anticipated marginal cost to the City of the electrical energy that would have
been consumed in the absence of the purchase pursuant to the Energy Service Contract as set
forth in Schedule 2 of the Energy Service Contract; and
WHEREAS, based on the information in Schedule 2 of the Energy Service Contract the
City and analysis performed by City Staff, the City has determined that the cost of the Energy
Service Contract to the City for the energy conservation services provided thereunder is less than
the anticipated marginal cost to the City of the energy that would have been consumed by the
City in the absence of the Energy Service Contract; and
WHEREAS, on September 11, 2017, the City published a notice of its intent to consider
entering into the Energy Service Contract and in accordance with Government Code sections
4217.12 the City Council held a public hearing on September 26, 2017, to receive public
comments on the Energy Service Contract; and
WHEREAS, the installation of the improvements described in the Energy Service
Contract is a project which is categorically exempt from review under the California
Environmental Quality Act under Class 3 exemptions.
NOW, THEREFORE, the City Council of the City of Chula Vista does hereby resolve as
follows:
SECTION 1. Recitals. The foregoing recitals are true and correct and the City Council so finds
and determines.
SECTION 2. Energy Service Contract Findings. In accordance with Section 4217.12 of the
California Government Code, the City Council finds that the anticipated cost to the City for the
electrical energy conservation services provided by the conservation measures under the Energy
Service Contract will be less than the anticipated marginal cost to the City of electrical energy
that would have been consumed by the City in the absence of those purchases and the funds for
the repayment of financing the cost of design, construction and operation of the energy
conservation facilities are projected to be available from revenues resulting from funding that
otherwise would have been used for the purchase of electrical energy required by the City of
Chula Vista in the absence of the energy conservation facilities.
SECTION 3. Waiver of Competitive Bidding Requirements. In accordance with Chula Vista
Municipal Code section 2.56.070.B.3, the Purchasing Agent has determined that the City's
interests were materially better served by utilizing the selection process used, rather than the
City's competitive bidding process. The City Council accepts this determination and,
accordingly, waives the City's competitive bidding requirements applicable to the Energy
Service Contract.
Page No. 2017-227
Page No. 3
SECTION 4. Approval of Energy Service Contract. The form of the Energy Service Contract
presented to the City Council at this meeting, is hereby approved in the form presented, with such
minor changes as may be authorized or approved by the City Attorney, a copy of which shall be kept
on file with the City Clerk, and authorizes and directs the Mayor to execute same.
SECTION 5. General Authorization. The City Council hereby authorizes and directs the City
Manager and designees, and each of them individually, for and in the name of and on behalf of
the City, to do any and all things and to execute and deliver any and all documents that they may
deem necessary or advisable in order to complete the execution and delivery of the Energy
Service Contract and otherwise to carry out, give effect to, and comply with the terms and intent
of this resolution. All actions heretofore taken by such officers and agents that are in conformity
with the purposes and intent of this resolution are hereby ratified, confirmed and approved in all
respects. In addition, the Director of Finance/Treasure is authorized to approve any Change
Order to the Energy Service Contract in an amount below $25,000. Any Change Order, resulting
in an amount over $25,000, shall be valid only on the approval of the City Council.
SECTION 5. Effective Date. This resolution shall take effect immediately upon its passage.
Presented by
David Bilby, MSBA, OFO
Director of Finance/Treasurer
Approved as to form by
Glen R. Goggins
City Atto y
Resolution No. 2017-227
Page No. 4
PASSED, APPROVED, and ADOPTED by the City Council of the City of Chula Vista,
California, this 26th day of September 2017 by the following vote:
AYES: Councilmembers: Aguilar, Diaz, McCann, Padilla, and Salas
NAYS: Councilmembers: None
ABSENT: Councilmembers: None
Mary S s, Mayor
ATTEST:
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Kerry K igelo , MMC, Acting City Clerk
STATE OF CALIFORNIA
COUNTY OF SAN DIEGO
CITY OF CHULA VISTA
1, Kerry K. Bigelow, City Clerk of Chula Vista, California, do hereby certify that the foregoing
Resolution No. 2017-227 was duly passed, approved, and adopted by the City Council at a
regular meeting of the Chula Vista City Council held on the 26th day of September 2017.
Executed this 26th day of September 2017.
Kerry K. Iggelow, AMC, Acting City Clerk