HomeMy WebLinkAboutReso 2009-117RESOLUTION NO. 2009-117
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA APPROVING THE SUBMITTAL OF A LOAN
APPLICATION TO THE CALIFORNIA ENERGY
COMMISSION AND PARTICIPATION IN THE SDG&E ON-
BILL FINANCING PROGRAM FOR UP TO $7.1 MILLION
AND AUTHORIZING THE CITY MANAGER OR HIS
DESIGNEE TO EXECUTE ALL LOAN AND/OR PROGRAM
DOCUMENTS ASSOCIATED THEREWITH
WHEREAS, as part of the American Recovery & Reinvestment Act of 2009, the City of
Chula Vista has been allocated $1,974,300 of Energy Efficiency & Conservation Block Grants
(EECBG) to implement strategies to reduce energy use and lower fossil fuel emissions; and
WHEREAS, staff has compiled a list of energy-saving projects and programs to include
in its EECBG application based on the priorities established in the Council-approved Chula Vista
Energy Strategy & Action Plan (2001), Municipal Building Energy Efficiency Policy (2005),
Climate Measures Implementation Plans (2008) and the additional community feedback at a
City-sponsored workshop on March 23, 2009; and
WHEREAS, staff is also requesting City Council authorization to implement up to $7.1
million in additional financing options (CEC Loans and SDG&E On-Bill Financing) to invest in
additional energy efficiency and renewable energy projects that leverage EECBG funds and
maximize the opportunity to achieve peak energy and greenhouse gas (GHG) emissions
reductions; and
WHEREAS, these projects would be funded through the use of either California Energy
Commission (CEC) Loans (3.95% interest rate) or San Diego Gas & Electric (SDG&E) On-Bill
Financing (0% interest rate) depending on individual project pazameters and financing
guidelines. Both financing mechanisms aze designed to use the resulting energy cost savings
from the energy efficiency or renewable energy retrofits to repay the applicable debt service
resulting in no net impact to the City's General Fund; and
WHEREAS, both financing options also have a valuable risk management feature that
allows projects to adjust their payments to match actual energy savings if there are unforeseen
circumstances and the projects aze otherwise compliant; and
WHEREAS, once the loans aze repaid, the energy cost savings would be realized in the
General Fund; and
WHEREAS, on September 25, 2007 (Resolution #2007-241), City Council authorized
staff to pursue up to $2 million in CEC Loans and/or SDG&E On-Bill Financing to fund energy
efficiency projects at municipal facilities; and
Resolution No. 2009-117
Page 2
WHEREAS, to date, approximately $925,000 of CEC Loans have been initiated which
have resulted in 25 completed municipal efficiency projects and $194,000 in annual energy cost
savings leaving approximately $1,075,000 in Council authorization remaining; and
WHEREAS, as a complement to the City's EECBG, staff is requesting authorization to
pursue up to $7.1 million in additional CEC Loan and/or SDG&E On-Bill Financing to fully
implement the energy-saving projects; and
WHEREAS, if additional EECBG become available, staff would use the federal funding
in lieu of CEC Loan and/or SDG&E On-Bill Financing options to fund the supplemental
projects.
NOW THEREFORE, BE IT RESOLVED that the City Council of the City of Chula
Vista does hereby approve the submittal of a Loan Application to the California Energy
Commission and participation in the SDG&E On-Bill Financing Program for up to $7.1 million.
BE IT FURTHER RESOLVED that the City Council of the City Of Chula Vista does
hereby authorize the City Manager or his designee to execute all loan and/or program documents
associated therewith.
Presented by Approved as to form by
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Mi~c a -lvleae~arn _ _.-------- _ ~ C. Miesfe
Conservation and Environmental Services City Attome
Director
Resolution No. 2009-117
Page 3
PASSED, APPROVED, and ADOPTED by the City Council of the City of Chula Vista,
California, this 12th day of May 2009 by the following vote:
AYES: Councilmembers: Bensoussan, Castaneda, McCann, Ramirez, and Cox
NAYS: Councilmembers: None
ABSENT: Councilmembers: None
Cheryl Cox, yor
ATTEST:
Donna R. Norris; CMC, City Clerk
STATE OF CALIFORNIA
COUNTY OF SAN DIEGO
CITY OF CHULA VISTA
I, Donna R. Norris, City Clerk of Chula Vista, California, do hereby certify that the foregoing
Resolution No. 2009-117 was duly passed, approved, and adopted by the City Council at a
regular meeting of the Chula Vista City Council held on the 12th day of May 2009.
Executed this 12th day of May 2009.
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Donna R. Norris, CMC, City Clerk