Loading...
HomeMy WebLinkAbout2007/09/25 Item 4 ~,J"':5!:~." . . ~, .~;:jl ~""~"f>';li};;1'j: . ... ..'.. '~.. ~~ ClIT OF ~-<: ,,~ (HULA VISTA ITEM TITLE: SUBMITTED BY: REVIEWED BY: SEPTEMBER 25, 2007, Item~ RESOLUTION OF THE CHULA VISTA CITY COUNCIL AUTHORIZING THE CITY MANAGER TO EXECUTE ALL DOCUMENTS IN CONJUNCTION WITH OBTAINING LOANS THROUGH THE CALIFORNIA ENERGY COMMISSION AND THE SDG&E ON-BILL FINANCING PROGRAM, NOT TO EXCEED A TOTAL OF TWO MILLION DOLLARS. DIRECTOR OF CONSE.RVATION & ENVIRONMENT~. SERVICES 1//1 I / "--.) CITY MANAGER r 4/STHS VOTE: YES D NO ~ SUMMARY Staff is requesting authorization to enter into a combination of agreements for loans from the California Energy Commission (CEC) and "On-Bill Financing" with SDG&E. The loans would bridge the financial gap between energy conservation project capital costs and the available rebates for energy conservation equipment. The estimated annual debt service for all the proposed projects is $90,200, which is less than the projected annual savings of $137,824. The SDG&E and City of Chula Vista Energy Conservation Partnership funds the personnel costs to identify, analyze and administer implementation of the individual projects. Staff is requesting authorization to use a combination ofloans and On-Bill Financing for up to two million dollars to: (I) address the funding gap for the attached list of capital projects; and (2) fund additional energy conservation and renewable energy projects that staff anticipates adding to the list during the remaining Partnership Program cycle which ends December 2008. BACKGROUND Public Goods Charges are collected from a monthly utility bill surcharge of approximately $0.05 per gas therm and $0.006 per electric kilowatt consumed by every customer in the SDG&E service territory. The Public Goods Charges are used to Implement Public Purpose Programs, including but not limited to residential and commercial energy efficiency and 4-1 SEPTEMBER 25, 2007, Item ..\ Page 2 of 4 conservation programs. The October 2004 Memorandum of Understanding between SDG&E and tbe City provides that SDG&E involve the City more directly in tbe development and delivery of up to $2,000,000 in Public Purpose Programs funded by Public Goods Charges to ensure tbat Chula Vista residents and businesses have access to tbeir fair share of Public Goods Programs, and that future programs meet tbeir needs. Botb agencies have worked with tbe California Public Utilities Commission (CPUC) to directly involve tbe City in more effectively delivering energy efficiency, conservation, demand management and alternative energy programs to Chula Vista residents, businesses and City facilities. Council approved tbe agreement that executed tbe Energy Partnership Program and appropriated tbe first calendar year funding for tbe Conservation & Environmental Services Department (CES) on September 19, 2006. Council appropriated tbe 2007 CES funds in December of 2006 and appropriated tbe General Services Department funds for 2006 and 2007 in February 2007. The SDG&E and City Energy Conservation Partnership began providing tbe City witb $731,075 per calendar vear from October 2006 through December 31, 2008. The Partnership was a CPUC concept that funded the City and SDG&E to work together to offer education/outreach and marketing support to reduce tbe amount of kilowatts (electricity) and therms (gas) consumed by a targeted group of energy customers that are either not fully participating or not eligible for existing programs. The Partnership also provides funding to promote energy conservation at City facilities to increase their participation and provide a demonstration project for commercial energy consumers. Finally, the Partnership is intended to establish additional energy management capacity and knowledge in the General Services and Public Works Departments to extend project savings beyond the grant term, and to identify and implement additional savings in the future. ENVIRONMENTAL REVIEW The Environmental Review Coordinator has reviewed the proposed activity for compliance with tbe California Environmental Quality Act (CEQA) and has determined that the activity is not a "Project" as defined under Section 15378 of the State CEQA Guidelines because it involves only the financing of projects that have already been approved for implementation; therefore, pursuant to Section l5060(c) (3) of the State CEQA Guidelines tbe activity is not subject to CEQA. Thus, no environmental review is necessary. RECOMMENDATION Adopt a resolution authorizing the City Manager to execute all documents in conjunction with obtaining loans from the CEC and the SDG&E On-Bill Financing Program, not to exceed a total of two million dollars. BOARDS/COMMISSION RECOMMENDATION The recommendation provides funding to implement the SDG&E Partnership program tbat was submitted to the Resource Conservation Commission in 2006. The RCC did not take formal action however they supported the programs by general consensus. 4-2 SEPTEMBER 25,2007, Item .-t Page 3 of4 DISCUSSION Since the beginning of the SDG&ElChula Vista Partnership in September 2006, CES staff has visited over 2,000 businesses and residents performing energy assessments and replacing traditional lighting with compact fluorescent light bulbs that have reduced electrical demand in the community by approximately 800,000kWh. CES has also worked with businesses to install approximately 500 energy efficient dishwashing spray rinse valves that have reduced natural gas consumption by approximately 130,000 therms. In addition, Economic Development and Redevelopment are playing a critical role in expanding and improving energy efficiency in a number of redevelopment and affordable housing projects by coordinating energy modeling and rebate assistance funded through the Partnership. General Services has been using their portion of the Partnership to fund the staff costs associated with identifying, analyzing and ranking the cost effectiveness of energy conservation capital projects that will reduce city energy consumption by more than 1,100,000kWh in 14 City facilities (Attachment 1). General Services has completed the first project which reduces energy consumption by 60,000kWh per year, cost approximately $600, and saves the City $'500 per year. The attached list of projects outlines the City's eligibility for rebates that cover $90,959 or approximately 17% of the total estimated project costs of $525,680. That leaves a funding gap of $434,721 needed to complete the list of projects. The projects have an average payback of 2.98 years and will generate an estimated $137,824 in annual savings, which continues for several years after the projects are repaid. Additionally, these savings are based on current rates and do not include the additional savings from increased rates if the proposed electricity and natural gas rate increases currently before the California Public Utilities Commission (CPUC) are approved. The On-Bill Financing (Attachment 2) and California Energy Commission (CEC) Loan Programs (Attachment 3) provide a financial bridge that eliminates the up front costs needed to implement the projects, and allows the City to fund the projects with the monthly energy bill savings. The CEC loan option includes a simple 3.95% interest rate with a term equal to the payback period. If all projects are financed with a CEC loan, financing costs are estimated to be $16,499. The SDG&E On-Bill Financing Program is interest free; however use of the On-Bill Financing program reduces rebates by 10% or at least $17,379 for the current list of projects. The On-Bill Financing program is also limited to projects valued at $50,000 or less per facility electric meter. At least three projects on the current list are not eligible for On-Bill Financing. The California Center for Energy Sustainability, formerly the San Diego Regional Energy Office verifies the rebate eligibility, monthly energy savings and estimates the payback period for projects. The CEC and SDG&E also verify that the projects are capable of generating the savings required to repay their program's debt service before they approve their respective loan or On-Bill Financing program that provides the funding to implement the project. The City is responsible for paying the debt service whether or not the savings are realized. Staff is requesting this authority now because SDG&E did not inform General 4-3 SEPTEMBER 25, 2007, Item~ Page 4 of 4 Services that the City could not use Partnership fimds to pay for the remaining infrastructure costs until late July of this year. Therefore, staff may not be able to complete all the projects initially presented to Council by General Services earlier this year. The proposed projects will produce immediate environmental benefits by reducing energy consumption. The Partnership will also fund personnel costs for implementing the conservation projects. Staff is also working with SDG&E and other City Departments to identifY project priorities for the remaining Partnership funds that meet the state's kilowatt savings requirements, the City's environmental goals and help reduce general fimd costs whenever possible. DECISION MAKER CONFLICT Staff has reviewed the property holdings of the City Council and has found no property holdings within 500 feet of the boundaries of the property, which is the subject of this action. FISCAL IMP ACT Adoption of the resolution will have no negative impact on the general fimd. Project costs will be paid by the general fimd but will be immediately reimbursed by the loan. The loan will be repaid with the monthly electricity bill savings generated by the project, there is no additional general fimd cost. The $137,824 in annual savings outlined in the attached project list will offset the $90,000 in annual debt service for CEC Loans or the SDG&E On-Bill Financing costs. The potential for some immediate savings will be subject to the timing of each project's completion and the term of the CEC loan package. The City will begin to accrue net savings of approximately $128,000 per year by the end of the fifth year. The rebates. projected savings and payback period are calculated and verified by an independent third party and the fimding agents, however the City is responsible for payment of the debt service regardless of whether or not the energy savings are produced. Staff will use the remaining loan capacity to implement projects that complement Partnership funding, meet or exceed the State kilowatt reductions goals, produce the greatest general fimd savings and advance the City's renewable energy, energy conservation and sustainability goals. ATTACHMENTS Proj ect List On-Bill Financing Description CEC Loan Description Prepared by: Michael Meacham, Director, Conservation & Environmental Services Department 4-4 .! allll E:C.!:! ;;;. =~~~ 1C (j')~ ,,- w ~ "" ~~ ~.. uc-- Wlll~~ u..9cu =. 1iJ~~ 8:; . u ..E ~ " 0" ~8 ;;: ~~: -~~ ~=~ sjo . ;; o . u o o o "0= . . ~=rn E . 0 t; ~u we. .!1 ~,~ ~:U1iJ E' 0 ,_ c u rno,; w 0 w u. . m- w.s~ :n~~ . rn:flr W(!Iij '" . " . ;; ..!~ ~. E~ ail ~. "m >-0 - > . . W'" o o % u . . o tl . 0' Q: . . . . e " " 0< ~ ;:: u . 'e- o. o ,,- .- _0 !~ E o u . ~ o >- N = N ~~ l;~ ..~ " E ''E 0) . 0 u ':i5 ~ :g I '" .. 0 O. W g~ .- -c'ij; 00 . . (jj~ ~~ ~ . N = a = ~ ~ o o N ~ = ~ = N 1! ~ = o N o ~ a o ~ ~ =- o o = .; N ~ = N o ~ o o " = " ." .<C => "'= :E'iij . 0 (ij~ = ,,= .- 0= ;;(j . - ~~ ~> 0-" o' =~ _U "E ;' ~ ~ " " . 0. -0 ,,- .- _0 ..!!!r::: 0. E 8 . ~ o >- o ~ ~ ~ o ,.; ~ == ,,= ~" N-~ N 0; ~ ~ ~ N ~ .. " ~ d- ~ ,,; Z <C Z ~ ~ ~ = o o N =- N " " ~- 1! = >'- = -, ~ E -" o '" . ~ . " 8 ~ = E m _S " . o -., o W ~g 85"'" ~~ --~ ~g .~ == ON 0 ~., It) . ~., " .. . '" _S " . ~ . . 0 .~ ~ g ::!:E .,Q Cl U ]! :@~ ~ :ii- .5..... :E >0 a E III 1'- C ~::l ~ . ;; ]; E o U = a o a N ~ " ~ = ~ N :; = ~ " = ~ = ~ ~ o ~ o = ~ ~ = ~ . . . " m . " . . > . _S " "3 " -" -0 8- o ~ " -0 0 -c- -c- 2:!o..2!O: !r:::~;:::: E E 8 8 . . ~ ~ o 0 >- >- o . = " -.t '5 . E .!1 o o o M ~ M o~ 0= ~N ~-~ il, ~ :ij N N ~ o ~ <0 ~ ~ N '" o ~ ~ " ;;:; ~ ~ :;: N ~ ;J, ~ ~ ~ " ;!l N o o o ;! o ~ ~ d N 8 ,.; = ~ M ~ ~ = ~ ~ o ~ o ~ > o . = . . g~ __ u ~] ~ " ~.9 j! Q; . > . 0 U u . -0 ~ 8- ~ ~(jj ",,,0 o g ~ . o g W " . " '" '" 1! .= 0<C jU 0'; E .-m 3~ ~"S ~B o _S " . ~ '" . "E . > " ~~ .3~ o w z o z 0"- o ~ o ,,- .- _0 .- -a~ E 8 . ~ o >- a o I ~tO :;~ ;;:; o ~ ~ N o N M o - i!i " ~ 0_ - o o o N ~ o = 0. E . 0. -0 o 0. " . " E . >. "' . . . ~o wo OE o M - ~ ~ N N N o N " = ,.; o ;; M ~ ~ ~ M M o a o a ~ .; o o ,.; = o ~ ~ o ~ o ~ E ": ~ .9 ;;1 g o .;:: "'" QI o . BI'~ .=12' u W ]~ .= "'''' .S ::E o . ~. '" o 0; ,.- 0= ~;) ~~ <05 ~.!!! . ~ U o o ~ . ~21 "'0 ~~ l :. 0. -0 ,,- .- _0 .- -a~ E o u . ~ ~ o M '" N o N =- O~ l!:~ ,,;~ ~ ~ = N = o - o = ~ " N o o o = N ;;:; " ~ :; N ~ o " N- ~ ~ M M- ~ = _S " . ~ g ~ = . ;g~ . 0 ~- 2 . . , . 0 u u . -0 ~ 8- g 1ll (jj '" " 0 . " " . E .!1 w z o z 0"- o ~ ~ <C >- o >- '" " 4-5 = . " co 'a, ~'ii == 'j 'B . . 0.. E.=: -"~ 0= 5:~ ~O .- _ 0 r:Z = . " . ~ . - 0 ~o =~ ii5 o o -- 0 ,,- .- _0 .- -a~ E o u . = o >- OM NC'i N~ ~N == dN ~= -= ;ao == ~~ ,;N az; ~ " o N 1! M M M ~ N ~ ~ '" - a = = ~ ~ = ~ " ~ = N = = ~ = d . = o = " ~- N N = o o " ;;; io ;!l .; . . ill o N N cVj c: ,,Q C lQ reg c.. -- E - ,g-~ ~~ g.~ ~~ m~ Cl'" '6N C~ ffi E '8 ~ ..c e 'ij;.9 .= 3 :g tIl ;~ ~~ <( ~ 0 ~ ::: > ct Q ]i<C g~ :;gg:1 ~ ffi -- 0 ,,- ..2!O: !r:: E 8 . = o >- ~ ~ " ,,- ~ ~ ~ ~ o o ~ N ~c...::.., CO"'""N N~"" 11O~'" N ~ ~ ~ ;! ~ ~ ~ o o ~ z o o " M o o o 0- ~ o o o ;!l :ii >- '" E ;; " e o u o -E . >- o .- .= .- .0 '0< <Cu ~ - ~-" &5 ~. -"3 M~ U . " ~ . . ~ " o . I . -" -0 0. o o o o o ~ ~ ~ M = a ~ ~ o o o o z o o .; 000 0", 0>- ~ o o o ~ o '" >- g ~ o . E ~ . I ...~ ,,~ N~ ~~.., o q ~ ~ 0': 0. ~ ~ ~ ~ ~ o . = = " o 0 o " o ~ o o ~ ~ N = ~ :0 E~~:g ~~ ;f:; " N '" '" = ~ N N N ~ ~ :is N - ~ ~ g: .. ~ o o o ~ o o Q Q ~ N ~ N ~ ~ ~ ~ o 0 o 0 o " o ~ Q o o o ~ ~ " = ~ " Q Q ~ ~ = ~ ~ ~ . o o o Q o o Q ~ = ~ = o = o 0 o 0 '" " o ~ Q Q o = o = Q ~ o N ~ ~ :g o ~ = a 0 '" '" >- >- ~ o = = ~ ; s ~ ~.:!! .s ~ ~u =. c ~~ .a. ULL ] [i~ o_~ :C.f!l!! ,:;: ,o~ .soGf .. . 'C; A ~ se~~i-~ Energy utility" On-Bill Financing prbgram What is On-Bill Financing? The On-Bill Financing (OBf) program helps qualified commercial customers pay for energy-efficient business improvements through their SOG&E" bill. OBF works in conjunction with the SOG&E rebate and incentive programs listed to provide a zero-percent financing option for customers eligible to participate in such rebate and incentive programs. Who is eligible? Customers eligible for On-Bill Financing must receive a rebate through an SOG&E energy"efficiency program listed and have an active SOG&E account for the past two years for the same business. The account must be in good standing, with no deposit on record, and no dis- connect notices in the last twelve months. The following customers are eligible for financing through Small Business Super Saver, Standard Performance Contract, Energy Savings Bid and Tax Exempt Customer programs: . Business customers with an account on a commercial, industrial or agricultural rate that has a monthly electric demand under 100 kW and/or under an average monthly natural gas usage of 4,166 therms The following customers are eligible for financing through Express Efficiency, Standard Performance Contract, Energy Savings Bid and Tax Exempt Customer programs: . local government customers (school districts, city and county ag encies, water districts, etc.) 4-6 (ATTACHllllENT 2) Owners of multi-family units who do not live on the premises may qualify for financing through the Multi-Family Rebate program. How is the loan term calculated? The loan term for the project is determined by the repayment period of the equipment selected through the eligible program(s) and is calculated based on estimated annual energy savings not to exceed the maximum loan term. The maximum loan term is five (5) years. Funds must be used for the purchase and installation of qualifying energy efficiency measures. What are the loan limits? The project cost, per meter, per customer (after reduced rebates or incentives are applied), must be a minimum of $5.000. The maximum loan amount is $50,000, and the maximum length of a loan is five years. How does On-Bill Financing affect the measure rebate amount? Customers who eiect to participate in OBF will have their rebate/incentive reduced by 10% in exchange for the loan. This allows SDG&E to provide more rebates to businesses interested in making energy- efficient upgrades. How do I apply? To find out more about this program, its details, and its terms and conditions, (continued) (ATTACHMENT 3) EASY LOANS No application fees, points, or hidden costs ~ FINANCING FOR ENERGY EFFICIENCY & ENERGY GENERATION -PROJECTS PPllC i N Public schools & colleges public Hospitals Local Governments Special Districts public Care Institutions CEC-400-2007-010 4-7 Are You Eligible? . Public Schools and Colleges . Cities . Counties . Special Districts . Public Hospitals . Public Care Institutions Does Your Facility Qualify? Existing buildings or other energy using facilities are eligible. Some new buildings and facilities may also be eligible. Please call to discuss eligibility. How Much is Available? Does Your Project Qualify? You can purchase and install any commercially-available energy efficiency equipment with proven energy and/or capacity savings. Examples of qualified projects: Please call for latest funding availability. Loans can finance up to 100 percent of the project costs. When Should You Submit Your Application? . Lighting . Motors and pumps . Heating and air conditioning systems . Automated energy management systems and controls . Cogeneration equipment . Light emitting diode traffic signal modules . Renewable energy systems . Thermal energy storage systems Nowl This solicitation is open continuously with no final filing date. Applications for funding will be accepted on a first come, first served basis, reviewed by a technical committee, and awarded based on project merit. The Energy Commission reserves the right to close the solicitation period at any time, so don't delay. Don't miss this opportunity. Projects already funded with an existing loan or already installed are ineligible. Please call if you have any questions. Criteria for Loan Approval Energy efficiency projects must be technically and economically feasible. Loans must be repaid from savings within 15 years, including principal and interest. This results in an approximate 1 a-year simple payback. Simple = Amount of Loan ($) Payback (yrs) Anticipated Annual Energy Cost Savings ($/yr) Loans for energy audits and feasibility studies may be considered. Call for information regarding eligibility. When Can You Start Your Project? Your application must be on file before you can start your project, and only project- related costs that are invoiced and paid for after Energy Commission approval may be included in the loan request. Applicants assume all financial risk should the Commission disapprove the application or if all loan documents are not executed. If the loan is disapproved for any reason, the Energy Commission is not responsible for reimbursement of any costs. Interest Rate The intElrest rate is a fixed 3.95 percent for the term of the loan. Loan Security Requirements It's simple. A promissory note, a loan agreement between you and the Energy Commission, and a Tax Certificate are all that is required to secure the loan. Please call to get a copy of these documents or you can download them at: hltp://www.enerav. ca. aov/efficiencvlfinancina/index.html How Are Funds Disbursed? The. funds are available on a reimbursement basis. For each reimbursement request, receipts and invoices for incurred expenses must be submitted along with payment verification by your organization. The final 10 percent of the funds will be retained until the project is completed. Interest is charged on the unpaid principal computed from the date of each disbursement to the borrower. Repayment Terms The repayment schedule is based on the estimated annual projected energy cost savings from the aggregated project(s), using energy costs and operating schedules at the time of loan approval. In some cases, the loan repayment schedule can be extended up to 15 years. Applicants will be billed twice a year after the projects are completed. 4-9 How Do You Apply? Unless otherwise specified in the "Other Information" column, just submit the information shown below or go to htto:!!enerov.ca.oov! efficiency! financino!index.html and fill it out on line. Your application must be complete before processing can begin. For incomplete applications, information must be received within a specific time or the application will be returned unprocessed. Application Package Copies Other Information Items Needed , Completed and signed loan Original plus one application CODV Completed Summary of Recommended Energy One copy Efficiency Measures in Loan Request Table The study must contain: a) description of energy efficiency projects and buildings or facilities affected by these projects, b) discussion of baseline energy use for the Feasibility Study' affected facilities, including annual energy One copy related utility bills, c) all calculations and assumptions to support the technical feasibility and energy savings of the recommended projects, d) proposed budget detailing all project costs, and e) proposed schedule for implementation of the oroiects. The resolution need not be submitted with Copy of a signed resolution, the application, but it must be received by One copy the time of final loan package signatures. motion, order, etc. from your The title of the official signing the loan governing board (see sample). agreement should be the same one named in the resolution, motion, or order. . If you are submitting multiple applications, please put each application package in a separate envelope. If the energy audit/feasibility study is used to justify energy efficiency projects in multiple applications, submit one copy of the audit/study and indicate the application package that contains the audit/study. I 4-10 I -== -, Where Do I Submit My Application? Send your application package with the specified copies to: c Who Do I Call? California Energy Commission Public Programs Office AUn: ECAA Loan Program 1516 Ninth Street, MS 42 Sacramento, CA 95814-5512 Call the California Energy Commission at (916) 654-4147 to discuss project and facility eligibility, funding availability, and application requirements. Energy Commission staff will review your application and contact you within 15 days. It may be necessary to arrange a site visit to discuss your project and loan request. 4-11 1. APPLICANT INFORMATION Applicant: Mailing City: Zip: Address: Street City: Zip: Address: County: Contact Title: Person: E-mail: I Phone: I Fax: 2. PROJECT INFORMATION A. Have you already applied for utility rebates and incentives for the projects that you are requesting loan funding? D Yes, Go to Item 28 D No, we have not applied but plan to do so in the future. Go to Item 28 D No, we do not plan to apply for any utility rebates. Go to Question 3 D Don't know what programs are available. Go to Question 3 8. If you have applied for utility rebates or plan to do so for the projects in your loan application, please indicate: Name of Utility: Name of Utility Efficiency Programs: Estimated Amourt of Rebate, if known: 3. PROJECT SCHEDULE Tentative project start date: Tentative project completion date: 4. PROJECT BUDGET Total project costs (include all installation costs): Amount requested from the Energy Commission: t-12 5. WHERE DID YOU HEAR ABOUT OUR PROGRAM? Please tell us where you heard about our loan program. o Energy Commission Website o Energy Commission Staff Presentation o Literature at Trade Show or Workshop o Utility Company o Recommendation by Another Public Agency o Other (please specify) 6. CERTIFICATION To the best of my knowledge and belief, the data In this application are correct and complete. Name of Authorized Representative: Title: Signature of Authorized Representative: Date: Phone: Fax: 4-13 .. ell ;: >-en ~ 00'10'1.- en L.CU.... 0 - eIl'- eIl'c !!~~li::l - c rn_ l/l c CD <( ::l l:I" CD 0::: en c 01 _ -Clcncn III 01 0'1 S 0 ::1- C 0 C cu .- ... ..J c'" > IV 0: <(::I0I.c ~(I):!::. l/l Z CD .. ::::J l/l -urn_ LO III 0 CD 01'- 0'I.c ::I::; C '<1"_ ::i c (,).- ~ <0 >- CQ,)>;.::,: <0 l.l <(w~- N C CD '(3 "C en iE ~ C t:D_ W OIC~ ex:> 01 so- '<I" >- ell >"'" Cl Q.CI)CU- .. ern CD c W "0 -c CD c "0 '" C '" CD 0. S E E .!!l ... 0 tJ ex:> l.l ell 1-- CD '0' - '" 0::: - '" .. $= c.. '" '" 5..c -l .. u ~ <1l'- - C 0.0 f2 Eu ~ <1l W <1l 4 eIl""'- _~cn o..a ;; S >- ell .- 01 >- rnc..- c .....9 (,)...... ell 01 en '-- 0 0.." .....~ c.. en .5 en c; ... C) ::I en c c 0 .- c (.J > <( ~ ~ '<I" o Ol I'- ci o ~ <A- C"l ~ ~ '<I" N <A- SAMPLE RESOLUTION RESOLUTION NO. Resolution of Name of Institution or Org~njzation WHEREAS, the California Energy Commission provides loans to schools, hospitals, local governments, special districts, and public care institutions to finance energy efficiency improvements; NOW THEREFORE, BE IT RESOLVED, that Governing Body to apply for an energy efficiency authorizes Name of Institution or Organization loan from the California Energy Commission to implement energy efficiency measures. BE IT ALSO RESOLVED, that if recommended for funding by the California Energy Commission, the authorizes Governing Body Institution or Organization to accept a loan up to $ Loan amount requested BE IT ALSO RESOLVED, that the amount of the loan will be paid in full, plus interest, under the terms and conditions of the Loah Agreement, Promissory Note and Tax Certificate of the California Energy Commission. BE IT FURTHER RESOLVED, that is hereby Title of Designated Officiai authorized and empowered to execute in the name of Institution or Organization all necessary documents to implement and carry out the purpose of this resolution, and to undertake all actions necessary to undertake and complete the energy efficiency projects. Passed, Approved and Adopted this day of Month Year Governing Board Representatives: 4-15 April 2007 4-16 RESOLUTION NO. 2007- RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AUTHORIZING THE CITY MANAGER TO EXECUTE ALL DOCUMENTS IN CONJUNCTION WITH OBTAINING LOANS THROUGH THE CALIFORNIA ENERGY COMMISSION AND THE SDG&E ON-BILL FINANCING PROGRAM, NOT TO EXCEED A TOTAL OF TWO MILLION DOLLARS WHEREAS, the California Energy Commission (CEC) provides loans to local governments to finance energy efficiency improvements; and WHEREAS, San Diego Gas & Electric (SDG&E) offers an "On-Bill Financing" (OBF) Program to help commercial customers pay for energy-efficient business improvements through their SDG&E bill; and WHEREAS, staff is requesting authorization to obtain loans through the CEC and the SDG&E OBF Program; and WHEREAS, the loans would bridge the financial gap between energy conservation project capital costs and the available rebates for energy conservation equipment; and WHEREAS, the estimated annual debt service for all the proposed projects is $90,200, which is less than the projected annual savings of$137,824; and WHEREAS, the SDG&E and City of Chula Vista Energy Conservation Partnership funds the personnel costs to identify, analyze and administer implementation of the individual projects; and WHEREAS, the proposed projects will produce immediate environmental benefits by reducing energy consumption; and WHEREAS, staff is also working with SDG&E and other City Departments to identify project priorities for the remaining Partnership funds that meet the state's kilowatt savings requirements, the City's environmental goals and help reduce general fund costs whenever possible; and WHEREAS, staff is requesting authorization to use a combination of loans and On Bill Financing for up to two million dollars to: (1) address the funding gap for the attached list of capital projects; and, (2) fund additional energy conservation and renewable energy projects that staff anticipates adding to the list during the remaining Partnership Program cycle which ends December 2008; and 4-17 Resolution No. 2007- Page 2 WHEREAS, adoption of the resolution will have no negative impact on the general fund. NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of Chula Vista authorizes the City of Chula Vista to apply for an energy efficiency loan from the California Energy Commission to implement energy efficiency measures. BE IT FURTHER RESOLVED, that if recommended for funding by the California Energy Commission, the City Council authorizes the City to accept a loan up to $2 million. BE IT FURTHER RESOLVED, that the amount of the loan will be paid in full, plus interest, under the terms and conditions of the Loan Agreement, Promissory Note and Tax Certificate of the California Energy Commission. BE IT FURTHER RESOL VED, that the City Manager is authorized to execute all documents in conjunction with implementing "on-bill financing" agreements with SDG&E, not to exceed a total of $2 million. BE IT FURTHER RESOLVED, that the City Manager is hereby authorized and empowered to execute in the name of the City of Chula Vista all necessary documents to implement and carry out the purpose of this resolution, and to undertake all actions necessary to undertake and complete the energy efficiency projects. Presented by Approved as to form by ichael Meacham, Director Department of Conservation & Environmental Services / , , J :lAttameyIRESOIAGREEM ENTS\C~li romi~ Eneq~y Commission_I 0-02-07.doc 4-18