HomeMy WebLinkAboutReso 2007-241
RESOLUTION NO. 2007-241
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 October 2004 Memorandum of Understanding between SDG&E and the
City provides that SDG&E involve the City more directly in the development and delivery of up
to $2,000,000 in Public Purpose Programs funded by Public Goods Charges to ensure that Chula
Vista residents and businesses have access to their fair share of Public Goods Programs, and that
future programs meet their needs; and
WHEREAS, both agencies have worked with the California Public Utilities Commission
(CPUC) to directly involve the City in more effectively delivering energy efficiency,
conservation, demand management and alternative energy programs to Chula Vista residents,
businesses and City facilities; and
WHEREAS, Council approved the agreement that executed the Energy Partnership
Program and appropriated the first calendar year funding for the Conservation & Environmental
Services Department (CES) on September 19,2006; and
WHEREAS, Council appropriated the 2007 CES funds in December of 2006 and
appropriated the General Services Department funds for 2006 and 2007 in February 2007; and
WHEREAS, the SDG&E and City Energy Conservation Partnership began providing the
City with $731,075 per calendar vear from October 2006 through December 31, 2008; and
WHEREAS, 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 the 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; and
WHEREAS, 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; and
WHEREAS, 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;
and
Resolution No. 2007-241
Page 2
WHEREAS, since the beginning of the SDG&E/Chula 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; and
WHEREAS, 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; and
WHEREAS, 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 proj ects by coordinating energy modeling and rebate assistance funded
through the Partnership; and
WHEREAS, 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; and
WHEREAS, 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.; and
WHEREAS, 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; and
WHEREAS, 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; and
WHEREAS, the On Bill Financing and California Energy Commission (CEC) Loan
Programs 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; and
WHEREAS, the CEC loan option includes a simple 3.95% interest rate with a term equal
to the payback period; and
WHEREAS, 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; and
WHEREAS, 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; and
I
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Resolution No. 2007-241
Page 3
WHEREAS, the City is responsible for paying the debt service whether or not the savings
are realized; and
WHEREAS, staff is requesting this authority now because SDG&E did not inform
General Services that the City could not use Partnership funds to pay for the remaining
infrastructure costs until late July of this year; and
WHEREAS, therefore, staff may not be able to complete all the projects initially
presented to Council by General Services earlier this year.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Chula
Vista hereby authorize the City Manager to execute all documents in conjunction with
implementing; Loan Agreements with the California Energy commission and on Bill Financing
Agreements with SDG&E not to exceed a total of Two Million Dollars.
Presented b~ /)k
Ann Hix
Acting Director of Community Development
Approved as to form by
~'f('tf-\\~~,\\-,
Ann Moore
City Attorney
PASSED, APPROVED, and ADOPTED by the City Council of the City of Chula Vista,
California, this 25th day of September 2007 by the following vote:
AYES:
Councilmembers:
Castaneda, McCann, Ramirez, Rindone, and Cox
NAYS:
Councilmembers:
None
ABSENT:
Councilmembers:
None .,
(j)~ / 7
Cheryl Cox, MaY~ Ur-
ATL
,f _ ~~.....:.
,. Susan Bigelow;-MM ,City Clerk
STATE OF CALIFORNIA )
COUNTY OF SAN DIEGO )
CITY OF CHULA VISTA )
I, Susan Bigelow, City Clerk of Chula Vista, California, do hereby certifY that the foregoing
Resolution No. 2007-241 was duly passed, approved, and adopted by the City Council at a
regular meeting of the Chula Vista City Council held on the 25th day of September 2007.
Executed this 25th day of September 2007. /J A/
L j~ IYoN..-
tV -Susan Bigelow, MMc, City Clerk