HomeMy WebLinkAbout2008/07/15 Item 3
CITY COUNCIL
AGENDA STATEMENT
ITEM TITLE:
-
JULY 15, 2008, Item~
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA ACCEPTING $256,424 IN LOAN FUNDS
FROM THE CALIFORNIA ENERGY COMMISSION FOR
ENERGY-EFFICIENCY IMPROVEMENTS AT THE LOMA
VERDE POOL COMPLEX AND POSSIBLE PROJECT COST
INCREASES ASSOCIATED WITH PREVIOUSLY
APPROVED ENERGY-EFFICIENCY RETROFIT PROJECTS
AT THE PUBLIC WORKS CORP YARD AND LOMA VERDE
RECREATION CENTER; AMENDING THE FISCAL YEAR
2008/2009 CAPITAL IMPROVEMENT PROGRAM AND CEC
ENERGY LOAN FUND; AND APPROPRIATING $256,424 IN
NEW LOAN FUNDS TO CAPITAL IMPROVEMENT
PROJECT GG202 (CEC ENERGY EFFICIENCY LOAN -
PHASE 1)
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA ACCEPTING $150,800 IN LOAN FUNDS
FROM THE CALIFORNIA ENERGY COMMISSION FOR
POSSIBLE PROJECT COST INCREASES ASSOCIATED
WITH PREVIOUSLY APPROVED ENERGY-EFFICIENCY
RETROFIT PROJECTS AT THE CIVIC CENTER BRANCH
LIBRARY, POLICE DEPARTMENT HEADQUARTERS, AND
PARKWAY RECREATION CENTER; AMENDING THE
FISCAL YEAR 2008/2009 CAPITAL IMPROVEMENT
PROGRAM AND CEC ENERGY LOAN FUND; AND
APPROPRIATING $150,800 IN NEW LOAN FUNDS TO
CAPITAL IMPROVEMENT PROJECT GG202 (CEC ENERGY
EFFICIENCY LOAN - PHASE 1)
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA ACCEPTING $18,643 IN LOAN FUNDS
FROM THE CALIFORNIA ENERGY COMMISSION FOR
POSSIBLE PROJECT COST INCREASES ASSOCIATED
WITH PREVIOUSLY APPROVED ENERGY-EFFICIENCY
RETROFIT PROJECTS AT THE SOUTH CHULA VISTA
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JULY 15,2008, Item---5-
Page 2 of5
SUBMITTED BY:
BRANCH LIBRARY; AMENDING THE FISCAL YEAR
2008/2009 CAPITAL IMPROVEMENT PROGRAM AND CEC
ENERGY LOAN FUND; AND APPROPRIATING $18,643 IN
NEW LOAN FUNDS TO CAPITAL IMPROVEMENT
PROJECT GG202 (CEC ENERGY EFFICIENCY LOAN _
PHASE 1)
DIR. OF CONSERVATION &~r<'V ONMENTAL SERVICES fdZ-J;..-.
DIRECTOR OF ENGINEERIN ~
CITY MANAGER q ~ r f)e
ASSISTANT CITY MANAGER "";;.-)
REVIEWED BY:
SUMMARY
On September 25, 2007, City Council authorized the Department of Conservation and
Environmental Services to pursue a combination of California Energy Commission loans
and San Diego Gas & Electric (SDG&E) 'On-Bill Financing' to bridge the financial gap
between capital costs and SDG&E incentives for energy efficiency retrofit projects at
municipal facilities. In coordination with the Engineering Department, the City was
awarded in March 2008 a $607,446 California Energy Commission loan to upgrade lighting,
improve HV AC systems and install variable speed drives at six facilities. Staff is now
seeking to amend the loan to include two new improvement projects at the Lorna Verde
Pool Complex which will ensure the public facility's operational reliability and reduce its
energy consumption. In addition, the amended loan amount of up to $1,033,313 will allow
greater implementation flexibility for previously approved energy-efficiency improvement
projects. In total, the improvement projects will reduce the City's annual energy use by
approximately 1.4 million kWh and 50,000 therms, generating $214,000 in annual cost
savings which will be used to repay the low interest, reimbursement loan.
4/5THS VOTE: YES 0 NO D
ENVIRONMENTAL REVIEW
The Environmental Review Coordinator has reviewed the proposed action for compliance
with the California Environmental Quality Act (CEQA) and has determined that this
action qualifies for a Class I categorical exemption pursuant to Section 15301 (Existing
Facilities) of the State CEQA Guidelines. Thus, no further environmental review is
necessary.
RECOMMENDATION
Staff recommends that City Council adopt the resolution.
BOARDS/COMMISSION RECOMMENDATION
The Resource Conservation Commission did not take a formal action on the SDG&E
Partnership Program; however, they supported the energy-saving program by general
consensus.
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JULY 15.2008, Item -,;:
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Page 3 of 5
DISCUSSION
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
customers in the SDG&E service territory. The Public Goods Charges are used to
implement regional Public Purpose Programs, including residential and commercial
energy efficiency and conservation efforts. The San Diego Gas & Electric
(SDG&E)/Chula Vista Memorandum of Understanding (October 2004) directs SDG&E
to directly involve the City in developing and delivering up to $2,000,000 in Public
Purpose Programs per year to ensure the community's access to their fair share of energy
efficiency opportunities. As a result, both agencies have worked with the California
Public Utilities Commission to create an Energy Efficiency Partnership Program to
deliver energy efficiency, conservation, demand management and alternative energy
programs to Chula Vista residents, businesses and municipal facilities.
In October 2006, Council approved the SDG&E/Chula Vista Energy Efficiency
Partnership agreement that provided the City with $731,075 annually for three calendar
years. The Partnership's goal is to reduce the amount of kilowatt-hours (electricity) and
therms (gas) consumed by targeted sectors, which historically have not fully participated
or are not eligible for existing energy incentive programs. The Partnership also provides
funding to promote energy efficiency retrofits at municipal facilities. While Partnership
funds are not able to be used for capital costs associated with energy efficient municipal
upgrades, it does provide financial support for City staff to evaluate, identify and
coordinate the installation of energy efficiency retrofit projects. On September 25, 2007,
City Council authorized the Department of Conservation and Environmental Services to
pursue up to $2,000,000 in California Energy Commission loans to bridge the financial
gap between capital costs and incentives for municipal energy efficiency and renewable
energy retrofit projects (Resolution #2007-241).
Under the Partnership agreement, the City pledged to reduce municipal building energy use
by 15% (equivalent to approximately 1,700,000 kWh and 45,000 therms) compared to its
2005 energy load. By March 2008, Engineering Department staff had identified 33 facility
improvements, which would reduce municipal consumption by 1,369,858 kWh and 14,463
therms. To fund the improvements, City staff applied and was awarded a California Energy
Commission (CEC) loan in an amount up to $607,446 to upgrade lighting, improve HV AC
systems and install variable frequency drives at six municipal facilities (Energy Efficiency
Improvements Phase 1A). The total loan amount was based on estimated total net project
costs which factors in the applicable SDG&E incentives of $203,155. The loan was
approved by City Council at their April I, 2008 meeting and staff is beginning to implement
the retrofit projects which are expected to save 1.4 million kWh and $180,410 annually.
Shortly after being awarded the loan, staff was informed by the CEC that it typically
encourages applicants to apply for the total grOSS project costs allowing the applicants
greater implementation flexibility if actual project costs are more than the originally
estimated amounts. As a result, staff has received permission from the CEC to adjust the
original loan amount to reflect the total project costs of up to $810,601.
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JUL Y 15,2008, Item :?
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Page 4 of 5
In addition, shortly after being awarded the CEC loan, the Lorna Verde Pool Complex's
boiler system which is used to heat both domestic and pool water ceased operating
properly. Engineering Department staff identified a replacement boiler as a top priority
for its Capital Improvement Program due to the Complex's reliance on the boiler for
proper operations and public use. Staff also identified the replacement of the pool's solar
hot water system as a top priority to further maximize the future energy cost savings and
reduce the City's greenhouse gas emissions. In order to fmance the proj ects, staff has
received approval from the CEC to also amend the existing loan to cover the total gross
project costs of $222,712 for the new boiler and solar hot water systems (Energy
Efficiency Improvements Phase IB). The new systems' estimated energy cost savings of
$33,000 annually would be used to repay the additional loan amount. The estimated
project costs and projected energy savings were independently calculated and verified by
California Energy Commission engineers.
In summary, the amended CEC loan amount of up to $1,033,313 will enable staff to
implement 35 energy efficiency and renewable energy improvement projects at six
municipal facilities over the next year. These projects will reduce the City's annual
energy consumption by approximately 1.4 million kWh and 50,000 therms. The resulting
annual energy cost savings of $214,000 will be used to repay the low interest loan
(simple payback period equals 4.8 years). In addition, City staff expects to receive
approximately $250,000 in SDG&E incentives to further reduce implementation costs
and shorten the loan payback period. With the adoption of this loan amendment, there
would be approximately $966,687 remaining in the original $2,000,000 authorization by
City Council and staff expects to identify additional projects for the remaining funding
over the next 12 months and to return to Council for additional loan authorization in
2009.
DECISION MAKER CONFLICT
Staff has reviewed the property holdings of the City Council and has found conflicts
exist, in that Councilmember Castaneda has property holdings within 500 feet of the
boundaries of the Civic Center Branch Library, Police Headquarters and the Parkway
Recreation Center which is the subject of this action and Councilmember Ramirez has
property holdings within 500 feet of the boundaries of the South Chula Vista Branch
Library which is also the subject of this action.
FISCAL IMPACT
At this time, staff is recommending amending the Fiscal Year 2008/2009 Capital
Improvement Program and CEC Energy Loan Fund to reflect the additional amount of
$425,867 and appropriating it to existing capital improvement project, "CEC Energy
Efficiency Loan - Phase 1 (CIP GG202)" as necessary to complete improvements at the
Lorna Verde Pool Complex and cover potential project cost increases associated with
previously approved energy-efficiency retrofit projects.
The total debt service of $1,230,361.98 (principal + interest) for the amended energy
efficiency loan would be fully offset by $214,000 in estimated annual energy savings.
Based on the projected amortization schedule, semiannual loan payments of $102,530.22
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JUL Y 15,2008, Iteml
Page5of5
would begin in 20 I 0 and last for 5.5 years. The amortization schedule will be adjusted
based on the date the City requests reimbursement from the loaning agency. Should the
loan repayments begin prior to 20 I 0, staff will return to Council to request a transfer of
funds from the department utilities budgets based upon actual savings. If the projects'
annual energy cost savings are less than expected, the loan may be renegotiated to assure
that the repayment amount does not exceed the actual energy savings. However, facility
operational changes or energy rate increases which result in less than expected energy
cost savings are not a basis for loan renegotiation. After the loan is repaid, the City will
realize net annual savings of approximately $214,000 on its energy bills, which are paid
from the City's General Fund appropriations.
City staff costs associated with implementing the projects are funded by the current
SDG&E Partnership Program. The retrofit projects' costs, projected energy savings and
payback periods were independently calculated by third-party energy engineers and
verified by the California Energy Commission.
ATTACHMENTS
1. Revised Municipal Facility Retrofit Project List (Phase I)
2. California Energy Commission - Energy Efficiency Loan Amendment
3. California Energy Commission - Original Energy Efficiency Loan
Prepared by: Brendan Reed, Environmental Resource Manager, Conservation & Environmental Services
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ATTACHMENT 1
MUNICIPAL FACILITIES ENERGY EFFICIENCY RETROFITS - CEC LOAN (PHASE 1)
Est. Annual Est Est. Simple
Natural Annual Estimated TECISPC Estimated Simple
# Locallon/Buslness Name Description of Measure Electrical Gas Cost ImplementatIon Incentive cost after Payback Payback wI
Savmgs Savings Savings Costs IS) ($I incentive ($) (Years) Incentives
(kWh( Uherms) 1$1 IYears)
1 Replace Metal Halides (Multiple Bays) 151,270 , 0 $14,803 $55,000 $18,152 $36,848 3.7 2.5
Public Works Corp Yard
2 Install HVAC unit for Server Room 15,569 0 $1,432 $13,650 $2,647 $11,003 9.5 7.7
3 Replace HHW pump 3,846 0 $493 $8,406 $442 $7,963 17.1 16.2
4 Install VFO on Chilled water pump 14,323 0 $1,719 $11,700 $1,647 $10,053 6.8 5.8
5 Inslall VFD on AH fans (8-1,2.3.4) 80,568 0 $9,668 $40,950 $9,265 $31,685 4.2 3.3
6 Civic Center Library Replace coils 4 0.0 0 Partof#5 $80,000 $0 $80,000 N/A N/A
7 Inslall Trane upgrade of Tracer Summel 0.0 0 Part of #5 $20,000 $0 $20,000 N/A N/A
Control System
8 Retrofit Chiller with Oil-less Centrifugal 61,200 0 $15,444 $65,000 $10,404 $54,596 4.2 3.5
Compressor
9 Ughling 40,884 0 $5,533 $36,595 $4,906 $31.689 6.8 5.7
10 Upgrade Central Plant 448,637 0 $52,446 $250,000 $76,268 $173,732 4.8 3.3
Police Headquarters
11 Air Handler Oplimizalion 220,968 14,463 $37,148 $80,000 $36,981 $43,019 2.2 1.2
12 Install VFD on pool 93,435 0 $9,388 $14,000 $10,745 $3,255 1.5 0.3
13 Retrofit Ta lighting with high performance 5,931 0 $897 $6,950 $712 $6,238 7.7 7.0
TB's and extra efficient ballasts
14 Replace incandescent with a screw-in eFL 858 0 $130 $40 $103 f$63) 0.3 (0.51
Loma Verde Recreation Retrofit HID fixtures in pool area with 5,783 0 $799 $2,400 $694 $1,706 3.0 2.1
15 Center electronically ballasted metal halides
16 Retrofit pool incandescents 5,483 0 $1,904 $11,050 $659 $10,391 5.8 5.5
Boiler replacement (2) 0.0 24,076 $23,088 $113,000 $38,522 $74,478 4.9 3.2
Solar hot water panels (79) & pool covers 0.0 11,061 $10,607 $109,712 $8,848 $100,864 10.3 9.5
19 Install high efficiency ballasts for T.8 lamp 23,920 0 $2,876 $20,000 $2,870 $17,130 7.0 8.0
20 Retrofit Chiller with Oil-less Centrifugal 68,000 0 $9,737 $45,000 $11.560 $33,440 4.6 3.4
Compressor
21 South Chula Vista Library Install VFD on the condenser fans 7,162 0 $645 $5,700 $824 $4,876 8.8 7.8
CV CEC Loan (Phase 1) . Energy Project Tracking
7-7-08
Est. Annual Est. Est. Simple
Electrical Natural Annual Estimated TEC/SPC Estimated Simple Payback wi
# Location/Business Name Descriptlon of Measure Savings Gas Cost ImplementatIon Incentive cost after Payback Incentives
IkWhl Savings Savings Costs ($) 1$1 mcentlve ($) (Years) (Years)
(lherms) ISI
22 Review controls for HVAC system 24,000 0 $2.160 $2,000 $2,760 ($760) 0.9 (OA)
23 Retrofit halogen MR16's 5,242 0 $927 $720 $629 $91 0.. 0.1
24 Install VFO on pool 49,440 0 $3,969 $8,750 $5,686 $3,064 2.2 0..
2. Retrofit HPS and MH in gym to TB 14,940 0 $2,160 $7,600 $1,793 $5,807 3.5 2.7
highbays
26 Delamp 3-lamp TB fixtures 3,137 0 $407 $1,750 $376 $1,374 4.3 3.4
27 Retrofit TB lighting with high performance 1,392 0 $202 $2,450 $167 $2,283 12.2 11.3
T8's and extra efficient ballasts
28 Relrofil2x2 with 3F17 TBs keeping 4 lamp 72 0 $10 $140 $9 $131 13.5 12.6
ballast
2. Delamp 2-lamp wrap fixtures 10 1 lamp 10. 0 $15 $1,050 $13 $1,037 69.2 68.3
Parkway Recreation Center
30 Retrofit HID wall packs 10 induction lamps 1,020 0 $147 $800 $122 $67. 5.4 4..
31 Retrofit HID outdoor lamp to CFL 165 0 $24 $150 $20 $130 6.3 5.5
32 Retrofit outdoor HID uplight floodlamps 198 0 $29 $760 $24 $726 26.2 25.4
with Ta's
33 Retrofit HPS lamps with fluorescent lamps 11,061 0 $1,553 $5,400 $1,327 $4,073 3.5 2.6
34 Retrofit 1000W MH fixtures in pool area 7,380 0 $2,456 $4,BOO $886 $3,914 2.8 1.6
3. Retrofit in-pool incandescenls with 70W 3,870 0 $1,2BB $7,600 $464 $7,336 6.1 5.7
melal halides
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1,369,858 49,600 $214,105
c=JPhase 1A
_Phase1B
CV GEC loan (Phase 1)- Energy Project Tracking
$1,033,313
$250,525
$782,788
4.8
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7-7-06
STATE OF CALIFORNiA
LOAN AGREEMENT AMENDMENT
ATTACHMENT 2
This ngreement is official notification of 0. funding award amendment from the CalIfornia Energy Commission. The attachments listed below are
incorporated as part of this fundine ,urreemenl
l.DMfNU70IU~
-,""
City of Chula Vista
008-07-ECC A.]
AcneEMENTTElIto1
'00=
276 Fourth Avenue, Chula Vista, CA 919]0
02/27/2008 - OS/21/20]0
cr.CMl.OJEt:TMAIO,CER
!'llONE
Califomia Energy Commission, Karen Perrin
(9]6) 654-4]04
~,=
] 5] 6 Ninth Street, MS-42, Sacramento, CA 958] 4
rll'ill'ost
The purpose oftills Amendment is to augment the loan with additional funds, extend the end term ofthe
Agreement, revise the estimated amortization schedule, revise the budget details, and add special conditions to
this Agreement. All other terms and conditions of the original Agreement remain unchanged.
CEC: $ 425,867.00
I'ROCIUJ>I -=
ECAA-2005A Bond Series The Bank of New York
"MOllrttENCU~IU[fIEl}II,.nUSUOC1l~ll:NT ".., la~ mrun 1""""''2007/08
$ 425,867.00
1JI10UIfrPftl!YJ01l5l.'\'!NCIIMII!1I!.Il rl1lll'OSE.OFtxnNDmmt
$ 607,446.00 C-191, Program Loan Acct. Series 2005A
"lOT.u. Mo\TClI S1WtE OmONAI..VSl.
$ 0.00
TOT.u,.AlIIOm.TTODA'l't
$ 1,033,313.00
I hereby <::crtify upon my own personnllulowicdge thnt budgeted funds are avnilable for lilt: period and purpose stateullbovc.
SlGl'l.\TURE Of CO~'MlSSIOf'l ^CCOUtiTINC OFf/CElt
-----J~
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gilT/or
Thc unders.i~lled parties hnve read tile attaehmcnts to this agreement nnd wilt comply witb lhe standards nnd requirements eontnined therein.
CALIFORNIA ENERGY COMMISSION RECIPIENT
...t.T110IllllDSlCtlAroRL .m Aunlon=:!iICllo\nmt .m
JlAl>lr PHOII! W" PIlONt
John P. Butler II, SSM-I (916) 654-4204
,\TTACUMENTS =
Estimated Amortization Scnedule
Budget Details
Resolution
Special Conditions
.
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200SA ECAA Revenue Bond
Loan Number: OOB-07-ECC
Recipient: C~TY OF CHULA VISTA
Loan Amount: $1,033,313.00
Zntezeat Rate: 3.950%
Number of Payments: ~2
Estimated First Disbursement Date: 02/28/2009
Estimated project Completion Date: OS/21/2010
Assumed First Payment Date: 12/22/2010
Energy Savings: $214,654.00
Loan Based on Annua.1 Energy Savings
Accrued I?rinc.ipal Unpaid
Date Transaction Amount Interest Reduction Principal
02/28/2009 Disbursement $1,033,313.00 $0.00 $0.00 $1,033,313.00
12/22/2010 Payment No. 1 $102,530.22 $74,027.58 $28,502.54 $1,004,810.45
OS/22/2011 Payment No. 2 $102,530.22 $19,790.54 $82,739.58 $922,070.88
12/22/2011 Payment No. 3 $102,530.22 $18,250.79 $84,259.43 $837,801. 45
OS/22/2012 :Payment No. 4 $102,530.22 $15,591.91 $85,938.31 $751,853.14
12/22/2012 Payment No. 5 $102,530.22 $14,889.98 $87,540.24 $554,222.90
OS/22/2013 Payment No. 5 $102,530.22 $1.3,082.46 $89,447.75 $574,775.14
12/22/2013 Payment No. 7 $102,530.22 $11,382.91 $91,147.31 $483,527.B3
06/22/2014 Payment No. B $102,530.22 $9,525.48 $93,004.74 $390,523.09
12/22/2014 Payment No. 9 $102,530.22 $7,735.94 $94,794.28 $295,828.81
06/22/2015 Payment No. 10 $102,530.22 $5,825.51 $95,703.51 $199,125.20
12/22/2015 payment No. 11 $102,530.22 $3,943.50 $98,585.72 $lOO,538.48
OS/22/2015 Payment No. 12 $102,529.55 $1,991. 08 $100,538.48 $0.00
Note: This Schedule is only an estimate. When your project is completed, you will be
~ssued a final schedule based on actual disbursem~nt{s) and completion date.
T~s amortization schedule assumes payments of all ~stallments are made
on their due dates in aocordance with the termB of the promissory note.
Any payment of installment considered to have been made lace in accordance with
the terms of the promissory note and any unsched~ed prepayment will affect
accrued interest, principal reduction, unpaid principal, and tocal repayment.
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EXHIBIT A
BUDGETDETNLS====
GLNUMBER: 008-07-ECC
RECIPIENT: CITY OF CHULA VISTA
SEQ NO.:
INSTITUTION:
BUILDING TYPE:
BUILDING USE:
ECM CODE:
ECM STATUS:
ECM BUDGET:
SEQ NO.:
INSTITUTION:
BUILDING TYPE:
BUILDING USE:
ECM CODE:
ECM STATUS:
ECM BUDGET:
SEQ NO.:
INSTITUTION:
BUILDING TYPE:
BUILDING USE:
ECM CODE:
ECM STATUS:
ECM BUDGET:
Budget Details
1
City
Other Multi Building
test
ECX CONY OTHER LT
Approved
$165,445.00
2
City
Other Multi Building
test
MAX OTHER AIR COND
$645,156.00
3
City
Other Building Type
MHO REPLACE BOIL
Approved
$222,712.00
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RESOLUTION NO: 08.521.4
STATE OF CALIFORNIA
STATE ENERGY RESOURCES
CONSERVATION AND DEVELOPMENT COMMISSION
RESOLUTION - RE: Energy Efficiency Loan to the City of Chula Vista
WHEREAS, pursuant to the Energy Conservation Act of 1979, Public Resources Code
Sections 25412 et. seq., the State Energy Resources Conservation and Development
Commission (the "Energy Commission") is authorized to provide a loan to the City of
Chula Vista (the "Borrower") to finance energy efficiency projects (the "Projects"); and
WHEREAS, the California Infrastructure and Economic Development Bank (the "Bank")
is authorized to finance energy efficiency loan programs administered by the Energy
Commission, which includes the issuance of the Bank's bonds to finance the Energy
Commission's energy efficiency financing program; and
WHEREAS, the Bank is authorized to issue Energy Efficiency Revenue Bonds (the Bond
Fund); and
WHEREAS, in order to be eligible for funding, an energy efficiency project must be
technically and economically feasible and have a simple payback of 10 years or less; and
WHEREAS, the Energy Commission staff has recommended after a technical review of
the loan application, that the Projects are worthy of receiving financial assistance; and
THEREFORE, BE IT RESOLVED, the Energy Commission approves the
recommendation of Energy Commission staff to provide a $425,867 loan augmentation to
the City of Chula Vista's existing loan of $607,446 for a total loan amount of $1 ,033,313
from the Energy Conservation Assistance Account and/or the Bond Fund.
BE IT FURTHER RESOLVED, that upon execution of all required documents, the Energy
Commission hereby declares its intent to reimburse the Borrower from the Energy
Conservation Assistance Account and/or the Bond Fund for approved Project
expenditures delineated in the loan agreement that may occur on or after the date of this
resolution.
Dated: May 21, 2008
STATE ENERGY RESOURCES
CONSERVATION AND DEVELOPMENT COMMISSION
JACKf\
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Special Conditions- City of Chula Vista Loan
1. The ReCipient shall implement all projects in Table 1. Failure to implement all
projects shall reduce the. approved loan amount. The reduced loan amount will be.
determined by multiplying the annual energy cost savings by 10.0. If the Recipient
receives progress payments that exceed this amount, the Recipient shall refund the
difference to the Commission.
Table 1: Citv of Chula Vista - Summarv of Recommended Projects
. Estimated Project Estimated Annual
Energy Efficiency Cost and Loan Cost Savings Payback'
Projects amount (Principal) (Years)
Mechanical
Measures
Install HVAC, retrofit
HVAC compressor
with variable speed
oil less centrifugal
compressor, install
VSP on water pumps $645,156 $144,798 4.5
fans, air handler fans
and cooling tower
fans, upgrade
energy management
controls on various
HVAC svstems.
Lighting Measures
(multiple facilities
and 0001 sites)
Upgrade multiple
lamps to high $165,445 $36,161 4.5
efficiencv Iiahtino
Pool Efficiency
Measures
Install 2 high I
efficiency
condensing boilers,
Replace swimming $222,712 $33,695
pool cover,
reactivate hot water I 6.6
heatino Daneis.
GRAND TOTAL I
ALL MEASURES $1,033,313** $214.654 4.8
. Payback based on the loan amount divided by the annual savings.
** Includes both February 27 and May 21, 2008 loan approval amounts.
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2. Energy cost savings, as determined by the Commission are based on energy usage
and utility costs at the time of the issuance of this Loan, and the information and data
in the Borrower's loan application and technical studies. The following will not affect
the Commission's initial finding of energy cost savings: a) changes in energy use.
and/or rate schedules which occur after issuance of the Loan, except as required in
the Special Conditions, b) deviations in the project work scope from what was
approved by the Energy Commission, c) changes in the Borrower's facility and/or
equipment which occur after the issuance of the loan, including, but not limited to
maintenance, operations, schedules, employees and facility alterations and
expansions, d) deviations, omissions or errors found in the loan application and
technical studies after the loan award. The Borrower is responsible for ensuring the
accuracy of the information contained in its loan application and technical studies.
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'I ATTACHMENT 3
ENERGY CONSERVATION ASSISTANCE ACCOUNT LOAN AGREEMENT
LOAN NUMBER: 008-07-ECC
PRINCIPAL AlVlOUNT: $ 607,446.00
PROJECT TERM: 02/27/08-02/27/10
This Loan Agreement (the "Agreement") is entered into as of the date it is executed by both
parties hereto, between the California Energy Resources Conservation and Development
Commission (the "Commission") and City of ChuIa Vista, a City ("Borrower") located in San
Diego County, California.
1. STATUTORY AUTHORITY AND LOAN
A. Pursuant to the purposes authorized by section 25410, et sen.. of the California
Public Resources Code (the "Energy Conservation Assistance Act"), the
Commission has approved Borrower's loan application dated November 14,
2007, which is not attached but is expressly incorporated by reference herein.
B. Subject to the terms, covenants, and conditions contained herein, and the
Budget Detail attached as Exhibit A hereto (the "Budget Detail") to the extent
it modifies Borrower's loan application, the Commission shall make a loan to
Borrower (the "Loan") in the amount of six hundred seven thousand, four
hundred forty-six dollars ($ 607,446.00), evidenced by a Promissory Note (the
"Promissory Note") for loan number 008-07-ECC attached hereto as Exhibit B.
2. PURPOSE
The Borrower agrees to expend all funds disbursed pursuant to this Agreement only
for the purposes and in the amounts set forth in the attached Budget Detail (the
"Project"). Any other use of funds disbursed hereunder shall require prior written
approval by the Commission.
3. LOA.N DISBURSEMENT SCHEDULE
A. The Commission agrees to disburse funds to the Borrower upon the
Borrower's execution of the attached Promissory Note and any appropriate
security instruments and required supplemental documents, including invoices
as required in Section 3.C below.
B. This paragraph applies only to Borrowers who have received technical
assistance 01' a feasibility study by a consultant under contract to the
Commission and are ;7nancing the technical assistance or feasibility study
reimbursement thl'ough this Loan: The Commission will reimburse itself from
the Borrower's Loan proceeds for the cost of the technical assistance or
ECAA Public Entity Loan Agreement
-1-
Rev. 114106
,;:'
3-14
feasibility study which was provided in accordance with the services
agreement, dated N/A. Such reimbursement will occur on the date the
Commission executes this Agreement and will be equal to $N/ A.
C. Except for the technical assistance or feasibility study cost indicated in
Section 3.B above, Loan funds shall be disbursed on a reimbursement basis
based on invoices submitted by Borrower in a form approved by the
Commission. Billings and proof of payment must be provided to substantiate
the request. Commission staff will approve invoices only after verifying
requested amounts against backup billings and determining that expenses are
appropriate and used for the authorized purposes of this Loan. For executed
Agreements, invoices for expenses incurred during the Project Term are
eligible for reimbursement.
D. All invoices must be submitted within sixty (60) days after Project completion.
E. Ten percent (10%) of the Loan amount will be withheld as retention until the
final report is received from the Borrower and the Commission's Project
Manager determines the Project has been satisfactorily completed.
4. LOAN REPAYMENT AND INTEREST
All funds disbursed hereunder, together with all interest payable thereon, shall be
repaid to the Commission in accordance with the terms of the Promissory Note. The
Loan shall bear simple interest at the annual rate set forth in the attached Promissory
Note on the principal balance of Loan funds disbursed to the Borrower. Payment of
said interest shall be due at the time of semiannual scheduled Loan repayment
installments to the Commission, and interest shall accrue from the time of disbursal of
funds to the Borrower until receipt of full Loan repayment to the Commission.
Interest on Commission reimbursement for technical assistance or the feasibility study,
if applicable, described in Section 3.B shall accrue from the date the Commission
executes this Agreement until receipt of full loan repayment to the Commission.
5. TERM
A. The effective date of this Agreement shall be the date on which it has been
executed by both parties hereto.
B. The Borrower agrees to complete performance of its obligations under this
Agreement within the applicable periods stated in this Agreement.
6. PREPAYMENT
Borrower shall have the right to prepay all or any part of the amount of this Loan at
any time without penalty.
ECAA Public Entity Loan Agreement
-2-
Rev. 114/06
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7. PROMISSORY NOTE
In order to evidence its debt to the Commission hereunder, the Borrower agrees to,
contemporaneously with the execution of this Agreement, execute and deliver to the
Commission the Promissory Note (attached as Exhibit B hereto).
8. ACCmJNTS
A. The Borrower agrees to establish on its books a separate account for this Loan.
This account shall be maintained as long as the Loan obligation remains
unsatisfied.
B. The Borrower further agrees to maintain records that accurately and fully show
the date, amount, purpose, and payee of all expenditures drawn on said account
for three (3) years after this Loan is repaid in full.
C. The Borrower further agrees to utilize a voucher system by which all
expenditures from said account will be authorized and authenticated.
D. The Borrower further- agrees to allow the Commission or any other agency of
the State of California (the "State") or the federal government, or their
designated representatives, on written request, to have reasonable access to,
and the right of inspection of, all records that pertain to said account or the
Project. The Borrower also agrees to submit to an independent audit, if
requested by the Commission, at the expense of the Borrower. Borrower
agrees to maintain all such records for a minimum of three years after this
Loan is repaid in full, unless the Commission notifies the Borrower, prior to
the expiration of such three-year period, that a longer period of record retention
is necessa..ry.
9. SOURCE OF REPAYMENT; OPERATION OF PROJECT
A. Semiannual payments due to the Commission under this Agreement shall be
made from savings in energy costs or other legally available funds as the
Borrower chooses. If Borrower is a county, city, to~, township, board of
education, or school district, Borrower agrees _ that the amount of the
semiannual Loan repayment shall not be raised by the levy of additional taxes
and shall not be an obligation against tax revenues, but shall be obtained either
from savings in energy costs resulting from the subject energy conservation
projects or other legally available funds as the Borrower chooses.
B. Energy cost savings as determined by the Commission are based on energy
usage and serving utility rate schedules at the time of the issuance of this Loan,
except as specified in Special Conditions, if any, as detailed in this Agreement,
a11d the information and data contained in the Borrower's loan application and
technical study. The following will not affect the Commission's initial finding
ECAA Public Entity Loan Agreement
^
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3-16
of energy cost savings, and are not a basis for claiming a lack of energy
savings: a) changes in energy use andlor rate schedules which occur after
issuance of the Loan, except as specified in Special Conditions, if any, as
detailed in this Agreement, b) deviations in the project work scope from what
was approved by the Energy Commission, c) changes in the Borrower's
facility andlor equipment which occur after the issuance of the loan, including,
but not limited to maintenance, operations, schedules, employees and facility
alterations and expansions, d) deviations, omissions or errors found in the loan
application and technical study after the loan award. The Borrower is
responsible for ensuring the accuracy of the information contained in its loan
application and technical study. In the event annual energy cost savings
resulting from the Project, as determined by the Commission, fail to equal or
exceed the amount due under this Agreement, this Agreement may be
renegotiated to assure that the repayment amount does not exceed the actual
energy savings or avoided costs resulting from the Project, and the Promissory
Note will be revised accordingly. In no event, however, will the number of
semiannual installments payable hereunder and under the Promissory Note
exceed thirty.
C. The Borrower shall obtain and maintain in its records any and all permits and
licenses required to install or operate the Project and shall comply with all
local, state, and federal laws, rules and codes concerning the Project. The
Borrower shall maintain the Project in good working order for the duration of
the Loan and shall insure that staff members are provided appropriate training
on the operation and maintenance of the Project. The Borrower shall maintain
insurance on the Project and, in the event of any casualty loss covered by such
insurance policy, apply the proceeds to the repair of the Project or, with the
approval of the Commission, may use the insurance proceeds to install
alternate projects to generate alternative energy cost savings to repay the Loan.
D. The Borrower agrees to provide the Commission with information necessary
for administration of the Program for three years following completion of the
Project. The needed information includes the following, at a minimum, (1) the
annual computation, required by Section 25414 of the Energy Conservation
Assistance Act, of energy cost savings for the most recent fiscal year,
calculated in the manner prescribed by the Commission and (2) any
information or change in assumptions or operations which might affect the
Commission's initial determination of energy savings.
E. The Borrower authorizes any official or agent of the Commission or the State
to conduct physical inspections of the Project before the commencement;
during construction, installation and implementation of the Project; and at any
time prior to the complete repayment of the Loan. In each contract entered
into with suppliers of goods and services to install, conduct, or operate the
Project, including management services, the Borrower shall include terms
ECAA Public Entity Loan Agreement
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Rev. 1/4/06
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3-17
which allow any officer or agent of the Commission or the State access to the
Project site and to any books, documents, or records directly relevant to the
Project.
F. Borrower will execute a continuing disclosure agreement to provide annual
information and other operating or financial information as required by the
Commission and by applicable law if Borrower is notified by the Commission
that: a) its aggregate loan repayments equal or exceed 10 percent of the
aggregate annual debt service on any series of Bonds, the repayment of which
is secured by such loan or loans of the Borrower, or 2) its aggregate loans
represent more than 10 percent of the aggregate principal amount of all Bond-
funded loans pledged to a single Bond series.
G. If, prior to final repayment of the Loan, the Borrower sells the equipment or
material installed with the proceeds of the Loan or sells the building, facility or
system in which the Project has been implemented, then the Borrower shall
apply the sale proceeds to repay any remaining balance due under this
Agreement in full at the time of such sale. All such transactions shall comply
with the requirements in Exhibit D, Borrower Tax Certificate. The Borrower
shall notify the Commission within five business days of the date on which the
Borrower enters into an agreement to effect such transaction. The Borrower
shall repay the Commission within 30 calendar days of receiving an invoice
from the Commission for the balance due.
H. In accordance with Section 25415 of the Energy Conservation Assistance Act,
Borrower covenants to take such action as may be necessary to include all
payments due hereunder in its annual budget and to make the necessary annual
appropriations for all such payments. The obligation of the Borrower to make
such payments shall be limited to the savings realized by the Borrower as a
result of implementing the Project funded by the Loan.
10. DEFAULT
A. The Borrower's failUre to comply with any of the terms of this Agreement
shall constitute a breach of this Agreement and an Event of Default. In such
case, the Commission may declare this Agreement to have been breached and
be released from any further performance hereunder.
B. In the event of any default or breach of this Agreement by the Borrower, the
Commission, without limiting any of its other legal rights or remedies, may to
the extent permitted by law, declare the Promissory Note evidencing this Loan
to be immediately due and payable.
ECAA Public Entity Loan Agreement
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Rev. 114106
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3-18
11. REPORTING
A. Progress reports are due quarterly until Project completion. Reports are due as
follows:
Quarter Report Due
January-March April S
April-June JulyS
July-September October S
October-December January 5
A progress report submitted with an invoice, in accordance with Section II.C.
will meet the quarterly reporting requirement if submitted within 30 days
before or after the progress report due date.
B. A final report is due no later than 60 days after Project completion.
C. A progress report must be submitted with each request (invoice) for Loan
funds.
D. If requested by the Commission, Borrower shall submit, within ten (10) days
after the Commission's written request, a status report on its activities to date,
pursuant to this Agreement.
E. Reports shall be in a format as determined by the Commission.
F. The Borrower shall submit reports regarding energy savings as described in
Section 9.D above.
12. GENERAL TERMS
A. Indemnification bv Borrower. The Borrower agrees to indemnify, defend, and
save harmless the Commission and the State and their officers, agents, and
employees from any and all claims, losses, or costs (including reasonable
attorney fees) arising out of, resulting from, or in any way connected with (I)
the Loan or this Agreement, or the financing or the operation of the facilities
financed with the Loan, or (2) the Borrower's violation or alleged violation of
any tax covenant made or tax certificate executed in connection with the Loan
or this Agreement or any action of the Borrower that causes interest on any
bonds secured by repayment of the Loan to be included in gross income of the
owners of such bonds for federal income tax purposes.
ECAA Public Entity Loan Agreement
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Rev. 1/4/06
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3-19
,.
B. Ownersbio of Equioment and Material. All equipment and material acquired
under this Agreement shall become the property of the Borrower at time of
purchase. The Borrower shall obtain and maintain in its records a written
waiver of all claims, other than those previously made in writing and still
unsettled, from each contractor who supplies goods and services, including
management services, in connection with the Project.
C. Indeoendent. Caoacitv. The Borrower, and the agents and employees of
Borrower, in the performance of this Agreement, shall act in an independent
capacity and not as officers or employees or agents of the Commission or the
State of California.
D. Assignment. Without the written consent of the Commission, this Agreement
is not assignable or transferable by Borrower either in whole or in part. The
Cornmission may assign its rights under this Agreement for security purposes,
and in such event the assignee of this Loan Agreement; including the bond
trustee of any bonds which are secured by repayment of this Loan, shall be
entitled to enforce the provisions hereof and shall be a third party beneficiary
of this Agreement.
E. Time of the Essence. Time is of the essence in this Agreement. Borrower is
required to take timely actions which, taken collectively, move to completion
of the purpose for which this Loan was awarded. The Commission Project
Manager will periodically evaluate the progress toward completion. If the
Commission Project Manager determines that the Borrower is not progressing
toward completion within one (I) year after the effective date of this
Agreement, the Commission Project Manager may, without penalty or
prejudice to any of the Commission's other remedies, terminate this
Agreement.
F. Amendment. No amendment or variation of the terms of this Agreement shall
be valid unless made in writing and signed by the parties hereto, and no oral
understanding or agreement not incorporated herein shall be binding on any of
the parties hereto.
G. Severability. In the event that any prOVlSlon of this Agreement is
unenforceable or held to be unenforceable, then the parties agree that all other
provisions of this Agreement have force and effect and shall not be fu.'fected
thereby.
H. Governing Law and Venue, This Agreement is governed by and shall be
interpreted in accordance with the laws of the State of California. Venue shall
be in Sacramento County.
1. Non-discrimination. During the performance of this Agreement, Borrower and
its contractors and subcontractors shall not unlawfully discriminate, harass, or
ECAA Public Entity Loan Agreement
-7-
Rev. l/4/06
3-20
allow harassment against any employee or applicant for employment because
of sex, race, color, ancestry, religious creed, national origin, physical disability
(including HIV and AIDS), mental disability, medical condition (cancer), age
(over 40), marital status, and family care leave. Borrower and its contractors
and subcontractors shall insure that the evaluation and treatment of their
employees and applicants for employment are free from such discrimination
and harassment. Borrower and its contractors and subcontractors shall comply
with the provisions of the Fair Employment and Housing Act (Government
Code Section 12990 (a-f) et seq.) and the applicable regulations promulgated
thereunder (California Code of Regulations, Title 2, Section 7285 et seq.). The
applicable regulations of the Fair Employment and Housing Commission
implementing Government Code Section 12990 (a-f), set forth in Chapter 5 of
Division 4 of Title 2 of the California Code of Regulations, are incorporated
into this agreement by reference and made a part hereof as if set forth in full.
Borrower and its contractors and its subcontractors shall give written notice of
their obligations under this clause to labor organizations with which they have
a collective bargaining or other agreement. Borrower and its contractors shall
include the nondiscrimination and compliance provisions of this clause in all
subcontracts to perform work under this Agreement.
J. Incorporation of Energv Conservation Assistance Act. The Energy
Conservation Assistance Act, together with any applicable rules, regulations or
procedures authorized by such statute, is incorporated by reference in this
Agreement.
K. Borrower Authorization. The Borrower certifies that it has full power and
authority to enter into this Agreement, and this Agreement has been duly
authorized, executed and delivered by the Borrower. The Borrower
acknowledges that the resolution of its governing body or other official action
authorizing it to enter into this Agreement also authorizes such further acts as
are necessary, including execution of the Promissory Note, to implement and
further the intent of this Agreement.
L. Prevailinll Walle. Borrower shall comply with Chapter 1 (commencing with
Section 1720) of Part 7 of Division 2 of the Labor Code relating to the
payment of prevailing wage for work performed on the Project financed in
whole or in part with the proceeds of the Loan.
13. TAX COVENANTS
The Borrower acknowledges that the proceeds of bonds issued by the California
Infrastructure and Economic Development Bank., or other issuer authorized by law,
may be used to fuod all or a portion of this Loan and, in consideration of such fuoding,
the Borrower hereby covenants that it shall not take any action, or fail to take any
action, if any such action or failure to take action would adversely affect the exclusion
from gross income of interest on such bonds under Section 103 of the Internal
ECAA Public Entity Loan Agreement
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Rev. l/4/06
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3-21
Revenue Code of 1986 and the regulations issued thereunder, as the same may be
amended from time to time. In furtherance of the preceding sentence, the Borrower
hereby covenants that it will comply with the provisions of the Tax Certificate which
is attached hereto as Exhibit D and incorporated herein as if fully set forth herein.
14. NOTICE
Any notice required to be given to the Commission hereunder shall be sent to the
Commission at 1516 Ninth Street, MS-l, Sacramento, California 95814, attention
Grants and Loans Office Manager, or at such other address as the Commission may
designate in writing to the Borrower. Any notice required to be given to the Borrower
hereunder shall be sent to the address shown below the Borrower's execution of this
Agreement, or at such other address as the Borrower shall designate in writing to the
Commission. Notice to either party may be given using the following delivery
methods: certified mail, Federal Express, United Parcel Service, or personal delivery,
providing evidence of receipt, to the respective parties identified in this Agreement.
Delivery by fax or e-mail is not considered notice for the purposes of this Agreement.
Notice shall be effective when received, unless a legal holiday for the State
commences on the date of the attempted delivery in which caSe the effective date shall
be postponed 24 hours, or whenever the next business day occurs.
ECAA Public Entity Loan Agreement
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Rev. 1/4/06
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3-22
IN WITNESS \VHEREOF, this Loan Agreement has been executed by the parties hereto.
STATE OF CALIFORNIA - CALIFORNIA
ENERGY COMMISSION
John P. Butler IT, SSM-I
PRINTED NAME OF AUTHORJZED SIGNATURE
~.i5.5M_\
AUTHORIZED SIGNATURE
MANAGER, GRANTS AND LOANS OFFICE
TITLE
s.- 1- Oe,
DATE
BORROWER (If other than an individual, state
whether a corporation, partnership, etc.)
City ofChula Vista
NAME OF BORROWER
David R. GarCia
PRINTED NAME OF AUTHORJZED SIGNATURE
~~~
City Manager
TITLE
-:/// ~p
DATE
MAll, ADDRESS:
City ofChula Vista
276 Fourth Avenue
Chula Vista, CA 92910
AMOUNT
ENCUMBERED
LOAN NO.
008-07-ECC
FISCAL FUND -The Bank of New York
YEAR
I
2007/2008 ECAA - 200SA Bond Series
$ 607,446.00
APPROPRIATION ORG.
C-191, Program Loan
Accl. Series 200SA
Program - Account Number
LINE ITEM
ALLOTMENT
NIA
APPROPRIATION ADO I I I $ro~
I HEREBY CERTIFY UPON MY OWN PERSONAL KNOWLEDGE THAT BUDGETED FUNDS ARE
AVAILABLE FOR THE PERIOD AND PURPOSE OF THE EXPENDITURE STATED ABOVE.
SIGNATURE OF ACCOUNTING OFFICER
--.j..JJ---
ECAA Public Entity LOllD Agreement
i.';-
'If
I DATE
I "3}rr/o&-
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Rev. 114/06
3-23
EXHIBIT A
BUDGET DETAILS
GLNUMBER: 008-07-ECC
RECil'IENT: CITY OF CHULA VISTA
SEQ NO.:
INSTITUTION:
BUILDING TYPE:
BUILDING USE:
ECM CODE:
ECM STATUS:
ECM BUDGET:
SEQ NO.:
INSTITUTION:
BUILDING TYPE:
BUILDING USE:
ECM CODE:
ECM STATUS:
ECM BUDGET:
Budget Details
1
City
Other Multi Building
test
ECX CONY OTHER LT
Approved
$131,521.00
2
City
Other Multi Building
test
MAX OTHER A1R COND
$475,925.00
A-I
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3-24
EXHIBIT B
PROMISSORY NOTE
B-1
I".
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3-25
EXHIBIT B
PROMISSORY NOTE
LOAN NUMBER:
PRINCIPAL AMOUNT:
INTEREST RATE:
008-07-ECC
$ 607.446.00
3.95%
1. For value received, the undersigned, (hereinafter referred to as the "Borrower"), promises
to pay to the order of the State of California., Energy Resources Conservation and
Development Commission (hereinafter referred to as the "Commission"), at its principal
place of business at 1516 Ninth Street, Sacramento, California 95814, or at such other
place as the Commission may designate, (1) the principal sum of six hundred seven
thousand, four hundred forty-six dollars ($ 607,446.00) or such lesser amount as shall
equal the aggregate amount disbursed to the Borrower by the Commission pursuant to the
above-referenced Energy Conservation Assistance Account Loan Agreement (the "Loan
Agreement") between the Borrower and the Commission, together with interest thereon
at the rate of 3.95 percent per annum on the unpaid principal, computed from the date of
each disbursement to the Borrower, and (2) the amount of Commission reimbursement
for technical assistance or feasibility study cost, if applicable, from the date the
Commission executes the Loan Agreement, until the loan is repaid by the Borrower, at
the rate of 3.95 percent per annum on the unpaid principal. Principal, together with
interest thereon, is due and payable in semiannual installments as specified in the
Estimated Amortization Schedule, attached hereto as Exhibit C, and as amended in the
Final Amortization Schedule, beginning on or before December 22 of the fiscal year
following the year in which the Project is completed and continuing thereafter on each
June 22 and December 22 until said principal and interest shall be paid in full. The Final
Amortization Schedule, and any amended Final Amortization Schedule(s) are not
attached but are expressly incorporated by reference herein.
2. Payment of any scheduled installment received within thirty (30) days after its due date
shall be considered to have been received on its due date and shall be first applied to
accrued interest from the date of disbursal to the Borrower and the balance, if any, to
principal. Payment of any scheduled installment received more than thirty (30) days after
its due date but before the next billing shall be considered late, and interest on the unpaid
principal shall accrue from date of disbursal to the Borrower through the actual payment
date. However, payment of any scheduled installment received after a subsequent billing
shall be considered overdue, and interest shall accrue on the unpaid principal from date of
disbursal to the Borrower through the subsequent billing due date or actual payment date,
whichever is later.
3. The Borrower may prepay this Promissory Note in full or in part, without penalty.
4. In accordance with Section 25415 of the Energy Conservation Assistance Act, Borrowerocovenants to take such action as may be necessary to include all payments due hereunder
in its annual budget and to make the necessary annual appropriations for all such
ECAA Promissory Note B-2 Rev. 11112/03
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3-26
payments. The obligation of the Borrower to make such payments shall be limited to the
savings realized by the Borrower as a result of implementing the Project funded by the
Loan.
5. If any installment is not paid within thirty (30) days after its due date, the Commission, at
its option, may require the Borrower to pay a late charge equal to five percent (5%) of the
amount of the installment or Five Dollars ($5.00), whichever is greater.
6. On the occurrence of any event of default, the Commission, at its sole election and
without limiting any of its other legal rights or remedies, may, to the extent permitted by
law, declare all or any portion of the principal and accrued interest on this Promissory
Note to be immediately due and payable and may proceed at once without further notice
to enforce this Promissory Note according to law.
7. Each of the following occurrences shall constitute an event of default:
A. Failure of the Borrower to repay any principal or interest when due under the
terms of this Promissory Note;
B. Termination of the Loan Agreement pursuant to the terms thereof or breach by the
Borrower of any terms of said Loan Agreement;
C. Failure of the Borrower to undertake in a timely way the express and implied
activities for which said Loan Agreement has been executed;
D. Failure of the Borrower to obtain prior written Commission approval before
undertaking a change in the scope of the activities for which said Loan Agreement
has been executed; or
E. Occurrence of (I) the Borrower becoming insolvent or bankrupt or being unable
or admitting in writing its inability to pay its debts as they mature or making a
general assignment for the benefit of or entering into any composition or
arrangement with creditors; (2) proceedings for the appointment of a receiver,
trustee, or liquidator of the assets of the Borrower or a substantial part thereof,
being authorized or instituted by or against the Borrower; or (3) proceedings
under any banlauptcy, reorganization, readjustmeniof debt, insolvency,
dissolution, liquidation or other similar law, or any jurisdiction being authorized
or instituted against the Borrower.
8. No delay or failure of the Commission in the exercise of any right or remedy hereunder
or under any other agreement which secures or is related hereto shall affect any such right
or remedy, and no single or partial exercise of any such right or remedy shall preclude
any further exercise thereof, and no action taken or omitted by the Commission shall be
deemed a waiver of any such right or remedy.
ECAA Promissory Note
B-3
Rev. 11/12/03
;-~'
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3-27
,.-
9. A.T1Y notice to the Borrower provided for in this Promissory Note shall be given by
mailing such notice by certified mail, return receipt requested, addressed to the Borrower
at the address stated in the Loan Agreement, or to such other address as the Borrower
may designate by notice to the Commission. Any notice to the Commission shall be
given by mailing such notice by certified mail, return receipt requested, to the
Commission at the address stated in the Loan Agreement, or at such other address as may
have been designated by notice to the Borrower.
10. If suit is brought to collect any part of this Promissory Note, the Commission shall be
entitled to collect all reasonable costs and expenses of said suit and any appeal therefrom,
including reasonable attorney's fees.
II. This Promissory Note shall be binding upon the Borrower and its permitted successors
and assigns and upon the Commission and its permitted successors and assigns. Without
the written consent of the Commission, this Promissory Note is not assignable or
transferable by Borrower either in whole or in part. The Corrnnission may assign its
rights under this Promissory Note for security purposes, and in such event the assignee of
this Promissory Note, including the bond trustee of any bonds which are secured by
repayments of this Promissory Note, shall be entitled to enforce the provisions hereof and
shall be a third party beneficiary of this Promissory Note.
12. This Promissory Note shall be construed and enforced in accordance with the laws of the
State of California.
City ofChula Vista
BORROWER
David R. Garcia
PRINTED NAME OF AUTHORIZED
REPRESJ:; AT~.,_,../~
11:; t~i,Manaqer
. TITLE
c// /i1 r
DATE
ECAA Promissory Note
B-4
Rev. ilfl2103
1'"
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3-28
,.
EXHIBIT C
ESTlM..<\TED AMORTIZATION SCHEDULE
C-l
i.r;"
3-29
:l005A ECAA Revenue Bond
Lean Number: 008-07-ECC
Recipient: CITY OF CHULA VISTA
Loan Amount: $607,446.00
Interest Rate: 3.950%
Number of Payments: a
Est~ted First Disbursement Date: 02/28/2009
Est~ted project Completion Date: 02/27/20~O
Assumed First ~ayment Date: ~2/22/2010
Energy Savings: $180,410.00
Loan Based on Annual Energy Savings
Accrued Principal Unpaid
Date Transaction Amount :Lnterest Reduction Principal
02/2812009 Disbursement $607,446.00 $0.00 $0.00 $607,U6.00
~2/22/20~0 Payment No. 1 $87,051.41 $43,5~8.~0 $43, 533 .3~ $563,912.69
06/22120~~ Payment No. 2 $87,051.41 $U,~06.76 $75,944.65 $487,968.04
~2/22120n payment No. 3 $87,05~.4~ $9,663 .77 $77,387.64 $4~0,580.40
06122/20~2 Payment No. 4 $87,051.41 $8, :1.31. ~8 $78,920.23 $33:1.,660.:1.7
~2/22120~2 Payment No. 5 $87,05:1..4~ $6,568.23 $80,483.18 $251,176.99
06/22/2013 Payment No. 6 $87,05~.41 $4,947.15 $82,~04.26 $169,072.73
~2/22/2013 paym.ent No. 7 $87, 051.4~ $3,348.33 $83,703.08 $85,369.65
06/22120~4 Payment No. 8 $87,051.08 $1,681.4.3 $85,369.65 $0.00
Note: Th.is Schedule is only a~ estimate. When your project is completed, you wi~l be
issued a final schedule based on actual disbursement{s} and completion date.
This amortization sohed~e assumes payments of a~l 1nsta~~ents are made
on their due dates in aooordenoe with the ter.ms of the ~r.omiseo~ note.
Any payment of installment considered to have been made late in aocordance with
the terms of the promissory note and any unscheduled prepayment will affect
accrued interest, princ1pal reduetiont unpaid principal, and total repayment.
1;'"
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EXHIBIT D
TAX CERTIFICATE
D-l
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3-31
EXHIBIT D
TAX CERTIFICATE
LOAN NUMBER:
REVENUE BOND SERIES:
REVENUE BOND ISSUANCE DATE:
008-07-ECC
2005A
Mav 11,2005
In connection with the issuance by the California Infrastructure and Economic Development
Bank (the "Bank"), or other issuer authorized by law, of its Bonds, (the "Bonds"), a portion of
the proceeds of which will be used to fund, in whole or in part, a loan to the undersigned
borrower (the "Borrower'), under the Loan Agreement (the "Loan"), from the California Energy
Commission (the "Commission"), to finance the acquisition and/or construction of a capital
project of the Borrower (the "Project"), the Borrower hereby certifies, with respect to proceeds
of the Loan drawn by the Borrower, as follows:
1. Use of Proceeds and Project. During the period in which the Loan is outstanding, the
Borrower shall not (1) sell or otherwise dispose of the Project or any portion thereof to an
entity that is not a governmental unit (for this purpose "governmental unit" shall mean
only a state or local governmental unit), (2) enter into a lease of the Project or any portion
thereof, regardless of type or duration, with an entity other than a governmental unit, (3)
enter into a ma'1agement or service contract with respect to the Project or any portion
thereof with an entity other than a governmental unit, unless such management or service
contract complies with the requirements of Revenue Procedure 97-13, 1997-1 C.B. 632,
as amended by Revenue Procedure 2001-39, 2001-28, LR.B. 38 (collectively, "Revenue
Procedure 97-13"), (4) otherwise enter into any other arrangement with respect to the
Project or any portion thereof that gives rise to a "private business use," within the
meaning of Section 141 of the Internal Revenue Code of1986, as amended (the "Code"),
of the Project or any portion thereof, or (5) make any other use of the proceeds of the
Loan that gives rise to a "private business use" of the proceeds of the Loan or any portion
thereof. The Borrower shall notify the Commission of any of the aforementioned
transactions within five business days of the date on which the Borrower enters into an
agreement to effect such transaction. In the case of a sale or disposition of the Project or
any portion thereof by the Borrower to a governmental unit, such sale or disposition shall
obligate the Borrower to require said governmental unit to assume all covenants and
responsibilities in this section. In the event the Borrower sells or disposes of the Project
or any portion thereof to a Governmental Unit, the Borrower shall, upon such sale or
disposition, repay the Loan or portion thereof allocable to the Project or portion thereof,
as the case may be, and shall apply any proceeds it derives from the sale of the Project or
portion thereof, as the case may be, to such repayment. Such amount shall be due and
payable to the Commission within thirty (30) calendar days of receiving an invoice from
the Commission for the balance due. As of the date hereof, (a) no portion of the Project
is subject to a lease with a person that is not a governmental unit, and (b) no portion of
the Project is subject to a management or service contract, with an entity other than a
governmental unit, that does not comply \'lith Revenue Procedure 97-13.
EC.-\...!\ Tax Certificate
D-2
Rev. 12120/04
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3-32
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2, No Further Loans. The Borrower shall not allocate any portion of the proceeds of the
Loan to the financing of a loan by the Borrower to another entity.
3. No Payment of Debt. The Borrower shall not use any por60n of the proceeds of the Loan
to pay the principal of or interest on any outstanding indebtedness of the Borrower.
4. Permitted Bases for Paving: Exnenses. All proceeds of the Loan drawn by the Borrower
shall either (1) be used to reimburse the Borrower for costs of the Project paid by the
Borrower (a) in anticipation of receiving such proceeds, (b) prior to the date of
requisition for such draw, and (c) after the date of approval of the Commission resolution
authorizing payment from proceeds of the Bonds or the Energy Conservation Assistance
Account, (2) reflect a direct payment by or on behalf of the Commission to the
Borrower's vendor in accordance with an arrangement approved, established and
implemented by the Commission with respect to such Borrower, or (3) reflect an
alternative arrangement that has been approved by Bond Counsel with respect to the
Bonds and communicated in writing by the Commission to the Borrower.
5, Canital Exnenditures Onlv. The Borrower shall allocate the proceeds of the Loan solely
to costs of the Project that constitute capital expenditures (which may include, among
other things, "soft costs" that are properly capitalizable into the cost of the Project). No
expenditures to which proceeds of the Loan will be allocated by the Borrower will be
operating or working capital expenditures.
6. Economic Life of Project. The Project has a reasonably expected economic that is at
least equal to the term of the Loan.
7. No Reolacement of Other Moneys. No portion of the proceeds of the Loan is being used
as a substitute for other moneys that (a) would have been used to finance the Project to
which proceeds of the Loan are being allocated if proceeds of the Bonds were not used to
fund the Loan, and (b) have been or will be used to acquire, directly or indirectly,
securities or obligations or other investment property.
8. Payment of Loan Debt Service. Payments of debt service on the Loan shall be made
directly by the Borrower and, except as provided in the next sentence, the Borrower shall
not set aside any moneys for such purpose in advance of such payments. The Borrower
may, if it chooses to do so, set aside moneys in a fund or account in advance of a debt
service payment date, but only where the Borrower makes such set-aside no more than
one year prior to the time such money will be needed, such that any moneys so set aside,
together with investment earnings thereon, will be used within one year of such set-aside
to pay debt service on the Loan. Any fund or account so established for such purpose
will be depleted no less frequently than annually. The Borrower shall make no other set-
aside, nor establish any other fund or account, that is reasonably expected to pay debt
service on the Loan or that is otherwise pledged as collateral for the Loan so as to create a
reasonable assurance that amounts represented by such set-aside, or in such fund or
account, would be available to pay debt service on the Loan in the event the Borrower
were to encounter fmancial difficulties. Nothing in this Section is intended to affect the
ECAA Tax Certificate D-3 Rev. 12/20104
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3-33
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requirement that the Borrower make payments of debt service on the Loan from certain
energy-related savings_
9. No Federal Guarantee. The Borrower shall not enter into any arrangement with respect
to the Project or any portion thereof obligating the United States or any agency or
instrumentality thereof to make payments of any kind to the Borrower.
10. No Purchase of Bonds. The Borrower shall not purchllse any of the Bonds, on the open
market or otherwise.
City of Chula Vista
BORROWER
q') - CodDO G,qo
FEDERAL EMPLOYER IDENTIFICATION NUMBER
Oavid R. Garcia
PRINTED NAME OF AUTHORIZED
7Il:lML
JTIT 0 SIGNATURE
City Manaqer
TITLE
~~~f
DATE
ECA-A. Tax Certificate
D-4
Rev. 12120/04
1;0'
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RESOLUTION NO: 08-0227-6
STATE OF CALIFORNIA
STATE ENERGY RESOURCES
CONSERVATION AND DEVELOPMENT COMMISSION
RESOLUTION':'" Re: Energy Efficiency Loan to the City of Chula vista
WHEREAS, pursuant to the Energy Conservation Act of 1979, Public Resources Code
Sections 25412 et. seq., the State Energy Resources Conservation and Development
Commission (the "Energy Commission") is authorized to provide a loan to the City of
Aiameda (the "Borrower") to finance 'energy efficiency projects (the "Projects"); and
WHEREAS, the California Infrastructure and Economic Development Bank (the "Bank") is
authorized to finance energy efficiency loan programs administered by the Energy
Commission, which includes the issuance of the Bank's bonds to finance the Energy
Commission's energy efficiency financing program; and
WHEREAS, the Bank is authorized to issue Energy Efficiency Revenue Bonds (the Bond
Fund); and
WHEREAS, in order to be eligible for funding, an energy efficiency project must be
technicaliy and economicaliy feasibl.e and have a simple payback of 10 years or less; and
WHEREAS, the Energy Commission staff has recommended after a technical review of
the loan application, that the Projects are worthy of receiving financial assistance; and
THEREFORE, BE IT RESOLVED, the Energy Commission approves the
recommendation of Energy Commission staff for a $607,446 loan from the Energy
Conservation Assistance Account and/or the Bond Fund.
BE IT FURTHER RESOLVED, that upon execution of ali required documents, the Energy
Commission hereby declares its intent to reimburse the Borrower from the Energy
Conservation Assistance Account and/or the Bond Fund for approved Project
expenditures delineated in the loan agreement that may occur on or after the date of this
resolution.
Dated: February 27, 2008
STATE ENERGY RESOURCES
CONSERVATION AND DEVELOPMENT COMMISSION
JACKAL Y PFANNENSTIEL, Chairman
)",.
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RESOLUTION NO, 2007-
RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF CHOLA V1STA AOTI:IORlZING THE CITY
MANAGER TO EXECUTE ALL DOCTJMENTS JN
CONJUNCTION WTI:I OBTAlNING LOA-HS
- TIffiOUGH 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 fillance energy efficiency improvements; and
WHEREAS, San Diego Gas & Electric (SDG&E) of(ers 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 througb the CEC and
the SDG&E DBF Program; and
WHEREAS, the loans would bri,dge the financial gap between energy
conservation project capital costs and the available rebates for energy conservation
equipment; and
WHEREAS, tbe estimated annual debt service for an the proposed projects 1S
$90,200, whicb is less than the projected annual savings of$137,824; and
WHEREAS, tbe 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
WdEREAS, 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 Pa.."1:nership funds that meet the state's
kilowatt savings requirements, the City's env.ironmental goals and help reduce general
fund costs whenever possible; and
WdEREAS, staff is requesting authorization to use a combination of loans and
On Bill Financing for up to two mi11ion dollars to: (1) address the funding gap for the
attached list of capital projects; fu,d, (2) fund additional energy conservation and
renewable energy projects that staff anticipates adding to the list during tbe remaining
Pa..rtnership Program cycle which ends December 2008; and
J~.
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,..."
Resolution No. 2007-
Page 2
"lVHEREAS, adoption of the resolution will have no negative impact on the
general fund.
NOW, TIfEREFORE, BE IT RESOLVED, that the City Council of the City of
Chula Vista authorizes the City of Chula Vista to apply far an energy efficiency loan
from the California Energy Commission to implement energy efficiency measures.
BE IT FURTIfER RESOLVED, that if recommended for funding by the
California Energy Commission, the City Council authorizes the City to accept a loan up
to $2 milli on.
BE IT FURTHER RESOLVED, that the amount of the loan will be paid in full,
plus interest, under the t~rms and conditions of the Loan Agreement, Promissory Note
and Tax Certificate of the California Energy Commission.
BE IT FURTHER RESOL YED, 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
'~;fJda'J
(I--Ann M Ole . (
"f' Gity orney .
ichael Meacham, Director
Department of Conservation
& Environmental Services
J:V.llD",~)'\RESov.GR;eEMS"N'TS'l!:~lifDrnQ En~r~ Cllnlm;~~iQfl_1 D-O:l-07 .llll~
;'{
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3-37
RESOLUTION NO. 2008-
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA ACCEPTING $256,424 IN LOAN FUNDS FROM
THE CALIFORNIA ENERGY COMMISSION FOR ENERGY-
EFFICIENCY IMPROVEMENTS AT THE LOMA VERDE POOL
COMPLEX AND POSSIBLE PROJECT COST INCREASES
ASSOCIATED WITH PREVlOUSL Y APPROVED ENERGY-
EFFICIENCY RETROFIT PROJECTS AT THE PUBLIC WORKS
CORP YARD AND LOMA VERDE RECREATION CENTER;
AMENDING THE FISCAL YEAR 2008-2009 CAPITAL
IMPROVEMENT PROGRAM AND CEC ENERGY LOAN FUND;
AND APPROPRIATING $256,424 IN NEW LOAN FUNDS TO
CAPITAL IMPROVEMENT PROJECT G0202 (CEC ENERGY
EFFICIENCY LOAN - PHASE 1)
WHEREAS, on September 25, 2007, City Council authorized the Department of
Conservation and Environmental Services to pursue up to $2,000,000 in California Energy
Commission ("CEC") loans to bridge the financial gap between capital costs and incentives for
municipal energy efficiency and renewable energy retrofit projects (Resolution 2007-241) and
authorized the City Manager to execute all necessary documents for the loans; and
WHEREAS, in March 2008, the CEC awarded the City a loan in the amount of $607,446;
and
WHEREAS, the total loan amount was based on estimated total net project costs which
factor in applicable SDG&E incentives or $203,155; and
WHEREAS, the CEC subsequently informed staff that it encourages applicants to apply for
the total gross project costs, allowing the applicants greater implementation flexibility if actual
project costs are more than the originally estimated amounts; and
WHEREAS, staff received permission from the CEC to adjust the original loan amount to
reflect the total project costs of up to $810, 601; and
WHEREAS, shortly after being awarded the CEC loan, the Lorna Verde Pool Complex's
boiler system which is used to heat both domestic and pool water ceased operating properly; and
WHEREAS, Engineering Department staff has identified a replacement boiler as a top
priority for its Capital Improvement Program due to the Complex's reliance on the boiler for proper
operations and public use; and
WHEREAS, staff has also identified the replacement of the pool's solar hot water system as
a top priority to further maximize the future energy cost savings and reduce the City's greenhouse
gas emissions; and
l\AttorneyIJlLLM\CEC LOAN\CEC LQan Amendment Reso ]dQ~
3-38
Resolution No. 2008-
Page 2
WHEREAS, staffhas received approval from the CEC to increase the loan to cover the total
gross project costs of $222,712 for the new boiler and solar hot water systems (Energy Efficiency
Improvements Phase IB); and
WHEREAS, $256,424 of the additional loan funds will be used for energy-efficiency
improvement projects at the Lorna Verde Pool Complex and possible project cost increases
associated with previously approved energy-efficiency retrofit projects at the Public Works Corp
Yard and the Lorna Verde Recreation Center; and
WHEREAS, the additional loan funds will ensure the public facilities' operational
reliability and reduce its energy consumption and will allow greater implementation flexibility
for previously approved energy-efficiency improvement projects.
NOW THEREFORE, BE IT RESOLVED by the City Council of the City of Chula Vista
that it:
1. Accepts $256,424 in loan funds from the California Energy Commission for
energy-efficiency improvement projects at the Lorna Verde Pool Complex and possible project
cost increases associated with previously approved energy-efficiency retrofit projects at the
Public Works Corp Yard and the Lorna Verde Recreation Center.
2. Amends the Fiscal Year 2008/2009 Capital Improvement Program and CEC
Energy Loan Fund.
3. Appropriates $256,424 in new loan refunds to Capital Improvement Project
00202 (CEC Energy Efficiency Loan - Phase 1).
Presented by
Approved as to form by
Michael Meacham
Director of Conservation and
Environmental Services
Richard Hopkins
Director of Engineering
JlAllomeyVILLMlCEC LOA1'\J\CEC Loan Amendment Reso ldoc
3-39
RESOLUTION NO. 2008-
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA ACCEPTING $150,800 IN LOAN FUNDS
FROM THE CALIFORNIA ENERGY COM.t\1ISSION FOR
POSSIBLE PROJECT COST INCREASES ASSOCIATED WITH
PREVIOUSL Y APPROVED ENERGY-EFFICIENCY
RETROFIT PROJECTS AT THE CIVIC CENTER BRANCH
LIBRARY, POLICE DEPARTJ'vIENT HEADQUARTERS, AND
PARKWAY RECREATION CENTER; AMENDING THE
FISCAL YEAR 2008-2009 CAPITAL IMPROVEMENT
PROGRAM AND CEC ENERGY LOAN FUND; AND
APPROPRIATING $150,800 IN NEW LOAN FUNDS TO
CAPITAL IMPROVEMENT PROJECT GG202 (CEC ENERGY
EFFICIENCY LOAN - PHASE 1)
WHEREAS, on September 25, 2007, City Council authorized the Department of
Conservation and Environmental Services to pursue up to $2,000,000 in California Energy
Commission CCEC") loans to bridge the financial gap between capital costs and incentives for
municipal energy efficiency and renewable energy retrofit projects (Resolution 2007-241) and
authorized the City Manager to execute all necessary documents for the loans; and
WHEREAS, in March 2008, the CEC awarded the City a loan in the amount of $607,446;
and
WHEREAS, the CEC subsequently informed staff that it encourages applicants to apply for
the total gross project costs, allowing the applicants greater implementation flexibility if actual
project costs are more than the originally estimated amounts; and
WHEREAS, staff received permission from the CEC to adjust the original loan amount to
reflect the total project costs; and
WHEREAS, $150,800 of the additional loan funds will be used for possible project cost
increases associated with previously approved energy-efficiency retrofit projects at the Civic
Center Branch Library, Police Department Headquarters and Parkway Recreation Center; and
WHEREAS, the additional loan funds will ensure the public facilities' operational
reliability and reduce its energy consumption and will allow greater implementation flexibility
for previously approved energy-efficiency improvement projects.
NOW THEREFORE, BE IT RESOLVED by the City Council of the City of Chula Vista
that it:
J\AtlornayIJILLlv!\CEC LOM"\CEC Loan Amendment Reso 2_doe
3-40
Resolution No. 2008-
Page 2
1. Accepts $150,800 in loan funds from the California Energy Commission for
possible project cost increases associated with previously approved energy-efficiency retrofit
projects at the Civic Center Branch Library, Police Department Headquarters and Parkway
Recreation Center.
2. Amends the Fiscal Year 2008/2009 Capital Improvement Program and CEC
Energy Loan Fund.
3. Appropriates $150,800 in new loan refunds to Capital Improvement Project
GG202 (CEC Energy Efficiency Loan - Phase 1).
Presented by
Approved as to form by
~Q:iJJ.J&uJ
c ~art . Mies I
'\ f ~Clty orney
Michael Meacham
Director of Conservation and
Environmental Services
Richard Hopkins
Director of Engineering
J\AttomeyIJILLI\iI\CEC LOAN\CEC Loan Am~ndmenl Reso 2.doc
3-41
RESOLUTION NO. 2008-
RESOLUTION OF THE CITY COlTNCIL OF THE CITY OF
CHULA VISTA ACCEPTING $18,643 IN LOAN FUNDS FROM
THE CALIFORNIA ENERGY COMMISSION FOR POSSIBLE
PROJECT COST INCREASES ASSOCIATED WITH
PREVIOUSL Y APPROVED ENERGY-EFFICIENCY
RETROFIT PROJECTS AT THE SOUTH CHULA VISTA
BRANCH LIBRARY; AMENDING THE FISCAL YEAR 2008-
2009 CAPITAL IMPROVEMENT PROGRAM AND CEC
ENERGY LOAN FUND; AND APPROPRIATING $18,643 IN
NEW LOAN FUNDS TO CAPITAL IMPROVEMENT PROJECT
GG202 (CEC ENERGY EFFICIENCY LOAN - PHASE 1)
WHEREAS, on September 25, 2007, City Council authorized the Department of
Conservation and Environmental Services to pursue up to $2,000,000 in California Energy
Commission ("CEC") loans to bridge the financial gap between capital costs and incentives for
municipal energy efficiency and renewable energy retrofit projects (Resolution 2007-241) and
authorized the City Manager to execute all necessary documents for the loanS"; and
WHEREAS, in March 2008, the CEC awarded the City a loan in the amount of $607,446;
and
WHEREAS, the CEC subsequently informed staff that it encourages applicants to apply for
the total gross project costs, allowing the applicants greater implementation flexibility if actual
project costs are more than the originally estimated amounts; and
WHEREAS, staff received pennission from the CEC to adjust the original loan amount to
reflect the total project costs; and
WHEREAS, $18,643 of the additional loan funds will be used for possible project cost
increases associated with previously approved energy-efficiency retrofit projects at the South
Chula Vista Branch Library; and
WHEREAS, the additional loan funds will ensure the public facility's operational
reliability and reduce its energy consumption and will allow greater implementation flexibility
for previously approved energy-efficiency improvement projects.
NOW THEREFORE, BE IT RESOLVED by the City Council of the City of Chula Vista
that it:
1. Accepts $18,643 in loan funds from the California Energy Commission for
possible project cost increases associated with previously approved energy-efficiency retrofit
projects at the South Chula Vista Branch Library.
J:\AttorneyVILLM\CEC LOM'\CEC Loan Amendment Reso 3 doc
3-42
Resolution No. 2008-
Page 2
) Amends the Fiscal Year 2008/2009 Capital Improvement Program and CEC
Energy Loan Fund.
3. Appropriates $18,643 in new loan refunds to Capital Improvement Project 00202
(CEC Energy Efficiency Loan - Phase I).
Presented by
Approved as to form by
Michael Meacham
Director of Conservation and
Environmental Services
Richard Hopkins
Director of Engineering
J:\Auarney\JILL]'v[\CEC LOA..'l\CEC Loan Amendment Reso J.doc
3-43