HomeMy WebLinkAbout2010/03/23 Item 8
CITY COUNCIL
AGENDA STATEMENT
~~~ CITY OF
-- CHULA VISTA
ITEM TITLE:
SUBMITTED BY:
REVIEWED BY:
MARCH 23, 2010, 1tem~
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA (I) AMENDING RESOLUTION NO. 2007-
241 AND 2009-117 TO AUTHORIZE CALIFORNIA ENERGY
COMMISSION LOAN AND SDG&E ON-BILL FINANCING
APPLICATION SUBMITTALS FOR UP TO $9.1 MILLION
WITH INTEREST RATES UP TO 3.95% AND (2)
APPROVING LOAN APPLICATIONS TO THE
CALIFORNIA ENERGY COMMISSION FOR AN
INDUCTION STREET LIGHT RETROFIT PROJECT (UP TO
$2,051,600) AND MUNICIPAL SOLAR PHOTOVOLTAIC &
MULTI-SITE LIGHTING PROJECT (UP TO $1,999,806)
DIRECTOR OF CONSERVATI~ON & ENVIRONMENTA~
SERVICES ~
DIRECTOR OF ~.':'ORK
CITY MANAGE
ASSISTANT CIT ANAGER ~
4/STHS VOTE: YES D NO ~
SUMMARY
To facilitate the retrofitting of existing municipal structures with more energy efficient and
renewable energy technologies, the City COWlcil previously authorized staff to pursue up to
$9.1 million in financing from the California Energy Commission Loan (3.95% interest rate)
or San Diego Gas & Electric On-Bill Financing (0% interest rate) programs. Both programs
use the energy cost savings resulting from the retrofits to repay the debt service. Since the
previous City COWlcil authorizations, the California Energy Commission has reduced the
interest rate of its loan program to 3.0% (or 1.0% for federal stimulus-supported projects).
As a result, the California Energy Commission is requesting that the City COWlcil clarifY its
approval of submitting and entering into loan agreements with interest rates UP to 3.95%.
Staff has also prepared Califomia Energy Commission loan applications for submittal to
finance two priority projects - Induction Street Light Retrofit Project and a Municipal Solar
Photovoltaic & Multi-Site Lighting Retrofit Project - in order to take advantage of the lower
interest rates.
8-1
MARCH 23, 2010, ItemL
Page 2 01'4
ENVIRONMENT AL REVIEW
The Environmental Review Coordinator has reviewed the proposed activity for
compliance with the California Environmental Quality Act (CEQA) and has detennined
that there is no possibility that the activity may have a significant effect on the
environment. Therefore, pursuant to Section l5061(b)(3) of the State CEQA Guidelines
the activity is not subject CEQA. Thus, no environmental review is necessary.
RECOMMENDA nON
Council adopt the resolution.
BOARDS/COMMISSION RECOMMENDA nON
Although the Resource Conservation Commission did not take fonnal action, the
Commission expressed general support for pursuing energy project financing at their
April 27, 2009 meeting.
DISCUSSION
The City of Chula Vista has been very proactive over the last 20 years in working to reduce
energy consumption and peak energy demand in its municipal operations. As part of its
Municipal Building Energy Efficiency Policy (2005), the City committed to regularly
retrofitting its facilities with more efficient technologies and installing renewable energy
systems to meet at least 20% of its energy demand. This commitment was reinforced with
City Council approval of the more recent Climate Protection Measures Implementation
Plans (Measure #5) in 2008.
To facilitate the retrofitting of existing municipal structures, the City Council authorized
staff to pursue up to $2.0 million in financing from the California Energy Commission Loan
(3.95% interest rate) or San Diego Gas & Electric On-Bill Financing (0% interest rate)
programs in September 2007 (Resolution #2007-241). In May 2009, the City Council
authorized staff to pursue another $7.1 million in energy project financing from the two
programs (Resolution #2009-117). To date, City staff has secured or is in the process of
securing over $5 million in low-interest financing from the programs for energy-related
retrofit projects as summarized in the following table:
SECURED FINANCING
Date Project Financing Amount
05/07/2008 HVAC - PHQ, CCl CEC 008-07-ECC $607,446
Lights - PWC, CCl, SCl, lVP, PWG
07/10/2008 Boiler & SHW - lVP CEC 008-07-ECC A.1 $425,867
02/02/2009 Induction Lighting - Street Lights Pending $2,051,600
02/25/2010 Solar PV & lighting - Multi-Site Pending $1,999,806
TOTAL $5,084,719
REMAINING AUTHORIZATION $4,015,281
8-2
MARCH 23, 2010, Iteml
Page 3 of 4
Both financing programs are designed to use the resulting energy cost savings trom the
energy efficiency or renewable energy retrofits to repay the applicable debt service resulting
in no net impact to the City's General Fund. 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 are otherwise compliant.
Since the previous City Council authorization, the California Energy Commission has
reduced the interest rate of its loan program to 3.0% (or 1.0% for select federal stimulus-
supported projects). As a result, the California Energy Commission is requesting that the
City Council clarify its approval of submitting and entering into loan agreements with
interest rates UP to 3.95%. These lower rates will greatly benefit the City by reducing the
overall finance costs for implementing energy efficiency and renewable energy projects
and shorten their payback periods.
City staff has also prepared California Energy Commission loan applications for two
priority projects - Induction Street Light Retrofit Project and a Municipal Solar
Photovo/taic & Multi-Site Lighting Retrofit Project - to take advantage of the lower interest
rates. The Induction Street Light Retrofit Project ($2,051,600) will replace approximately
4,600 street light fixtures throughout residential neighborhoods with induction luminaries
which use approximately 45% less energy. The Municipal Solar Photovo/taic & Multi-Site
Lighting Retrofit Project ($1,999,806) will install almost 500 kW of solar energy systems
and replace indoor and outdoor lighting with more energy-efficient technologies at II and
52 municipal sites, respectively.
The projects will generate approximately $382,000 in annual cost savings which will be
used to repay the loans. Once the loans are repaid (approximately 10 years), the energy cost
savings would be realized in the General Fund. In addition, the City would realize more
immediate energy cost savings as utility rates increase every few years and as routine
equipment replacement purchases are avoided. Finally, the California Energy Commission
loans will be supplemented with over $1.6 rnillion in federal and state grants and incentives
to help reduce net project costs.
DECISION MAKER CONFLICT
Staff has reviewed the property holdings of the City Council and has found a conflict
exists, in that Councilmember Steve Castaneda has property holdings within 500 feet of
the boundaries of the property which is the subject of this action.
CURRENT YEAR FISCAL IMP ACT
The City's submission of CEC Loans/SDG&E On-Bill Financing applications would not
have a negative impact on the City's General Fund for the current fiscal year. All staff
time costs associated with identifying and implementing energy-saving projects are
covered through the City's SDG&E Local Government Partnership which is funded by
California utility ratepayers under the auspices of the California Public Utilities
Commission.
8-3
MARCH 23, 2010, Item~
Page 4 of 4
ONGOING FISCAL IMPACT
All energy retrofit capital costs would be covered by the external funding sources. In
addition, staff time costs associated with implementing the projects would be reimbursed
through either the Energy Efficiency & Conservation Block Grant or the SDG&E Local
Government Partnership funds (i.e. no General Fund costs). The projects' resulting
energy cost savings would initially be used to repay the debt service, thus there would be
no new impact to the General Fund. Once the debt service is repaid (approximately 10
years), the City would realize the annual energy cost savings in its General Fund. In
addition, the City would realize more immediate energy cost savings as utility rates
increase every few years and as routine equipment replacement purchases are avoided.
ATTACHMENTS
Attachment A - Previous $2.0 million City Council Authorization (Reso #2007-241)
Attachment B - Previous $7.1 million City Council Authorization (Reso #2009-117)
Attachment C - CEC Loan Application for Induction Street Light Retrofit Project
Attachment D - CEC Loan Application for Municipal Solar & Multi-Site Lighting
Retrofit Project
Prepared by: Brendan Reed, Environmental Resource Manager, Conservation & Environmental Services
8-4
ATTACHMENT A
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 CALIFOR.."IIA
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
8-5
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 projects 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 $13 7 ,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
8-6
----.-.----
--~-----
___ u.._. _
I
-~--_. ---~~
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
AnnHix
Acting Director of Community Development
Approved as to form by
~o(("~\\.~~.\\-.
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:
NAYS:
ABSENT:
Councilmembers:
Castaneda., McCann, Ramirez, Rindone, and Cox
Councilmembers:
None
Councilmembers:
None
10 p. ~
\.:ALL /
Cheryl Cox, MaY~
ATIL
,( _ ~A"""
f Susan Bigelow;1\1M ,City Clerk
STATEOFCALlFORNIA )
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 YffnM;.... /~
jV .Susan Bigelow, MMC, City Clerk
8-7
ATTACHMENT B
RESOLUTION 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 AUTHORIZNG 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 Bui]ding 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 parameters and financing
guidelines. Both fmancing mechanisms are designed to use the resulting energy cost savings
trom 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 are otherwise compliant; and
WHEREAS, once the loans are repaid, the energy cost savings would be realized in the
General Fund; and
WHEREAS, on September 25, 2007 (Resolution #2007-24]), City Council authorized
staff to pursue up to $2 million in CEC Loans andlor SDG&E On-Bill Financing to fund energy
efficiency projects at municipal facilities; and
8-8
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 Califomia 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 OfChula 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
~~by-_.-
Conservation and Environmental Services
Director
8-9
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 follov.-ing vote:
AYES:
Councilmembers:
Bensoussan, Castaneda, McCann, Ramirez, and Cox
NAYS:
Councilmembers:
None
ABSENT:
Councilmembers:
None
Ch,ry,Obf,ij;
A TrEST:
I{P/ncv, (" t ~ AM '/.J
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.
d~ t ,ffiMM
,
Donna R. Norris,CMC, City Clerk
8-10
ATTACHMENT C
APPLICATION fOR. ENERGY COMMISSION fiNANCING
1. APPLICANT INFORMATION
Applicant: City of Chula Vista
DUNS' Number: 078726551
I Attach additional documentation (see Table on previous page showing items to attach to
i application)
i Mailing 276 Fourth Avenue City: Chula Vista I Zip: 91910
I Address:
Street City: Same i .
Address: Same I Zip
! County: San Diego
\ Contact Title: Environmental Resource Manager
) Person: Brendan Reed
iE-mail: breed@cichula- I. Phone: 619-409-5889 I Fax: 619-476-5310
i vista. ca. us
"DUNS Number IS Issued by Dun & Bradstreet (O&B). It is a unique nine digit identification number.
To request your D-U-N-S Number via the V\/eb go to: w\v~""_dnb_comlus/dLins_update
2. PROJECT INFORMATION
A Has any funding (such as local funds or other available funds) been previously
committed or approved for this project?
DYes
9"'N 0
If yes. please complete Section B:
B.
Source of Funds approvedlcommitted:
I
Provide details:
I
I Amount of funding approved:
ARRA loan funds may only be used to supplement and may not be used to supplant funds
already committed or expected to be received in support of the loan funded project.
8-11
C Has your agency applied for, expect to apply for, or received any utility rebates/incentives?
l!d"Yes If yes, please complete Section D:
o No
D.
Source of Rebatesllncentives: San Diego Gas & Electric
Amount: $43,108
3. PROJECT SCHEDULE
I Project
I Estimated start date: January 1, 2010
I Project
i Estimated completion date:
. Projects must be completed and loans fully disbursed on or before
March 31, 2012.
4. PROJECT BUDGET
: Total project costs
,
I (include all installation costs): $2,051,600
! Amount requested from
i the Energy Commission: $2,051,600
5. CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) COMPLIANCE
A Is there documentation demonstrating your compliance with CEQA?
~Yes, Go to B.
o No, STOP: Please complete CEQA compliance documentation before submitting
application.
B. What finding d,d your governing body make? Activity funded by the loan is:
iiY Not a project.
o Is a project, and is exempt: List applicable exemption:
_ Statutory (I,st code section):
_ Categorical (list section from CEQA Guidelines): _14 CCR - 15301
o Is a project that is not exempt.
Applicant prepared the following environmental document:
_ Initial study + Negative Declaration
_Initial study + Mitigated Negative Declaration
_ Environmental Impact Report
_ Other (describe)
Notice of Detenmination filed? Date:
8-12
6. SINGLE AUDIT ACT REQUIREMENTS
Please select one of the following:
if We are in full compliance with Single Audit Act requirements.
o We are exempt from Single Audit Act requirements.
o We are unsure whether we are in compliance with the Single Audit Act requirements.
We have contacted the California State Controller's Office at
singleaudits@sco.cagovto determine our status.
o We are not in compliance with Single Audit Act requirements. Please explain:
7. WHERE DID YOU HEAR ABOUT OUR PROGRAM?
Please tell us where you heard about our loan program.
if Energy Commission Website
o Energy Commission Staff Presentation
o Literature at Trade Show or Workshop
o Utility Company
o Recommendation by Another Public Agency
o Other (please specify)
8. CERTIFICATION
To the best of my 'Knowledge and belief, the data in this application are correct and
complete.
i Name of Authorized
, Representative: Jim Sandoval
I
, Title: City Manager
, Signature of Authorized
Representative:
Date: 10114109
I Fax: 619-409-5884
For Help Call (916) 654-4104
8-13
ex>
I
~
"'"
PROPOSED STREET LIGHTING RETROFIT PROJECTS
Version 2
GEG Energy Efficiency Loan - Phase 2
Energy Annual Gross
. Annual Savings Est. Annual . .
M FIxtures B p Electrical C t Gross Estlmaled N I C I SImple
easure # urn. er Savings ?S" Costs" Rebate^ e os S Payback
Hours !'Ixlure (kWh) Savmgs ( S)
~ ~
Replace 100-watt HPS with 55.watt Induction-
Residential Areas
4,600
4,165
0,045
862,155
$ 199,272 $ 2.051.600 $
43.108 $ 2,008,492
10.30
TOTAL 862.155
$ 199,272 $2,051.600 $ 43.108 $ 2,008,492
UReplacement cost ($446 per fixture) includes materials & installation
"SPC incentive is $O.05/kWh
co
I
~
C11
CIISTOMEII, un OF ClIlILA VISTA
_._._._-~
Sdl,'dul" LS-:~ Li{!hlillj!: Slrq'llIllrllti~hwn\" C\l~!(jIlIlH- OWHC,j
_.,__:~_'J)ort n"I~: 01:l01J\'1" 1.1, 2001}
V:Hi(!lI~ E:-:.~i~lilll.( Lml1jlS
!tnk< I':IT""li\,.:!rJflllfl~.)
q".,-h""I')
III'S
III'S
;'Qil~ii'lhy;~:" Le',"" i ': ~i::: .li;, ~;;:Writ!i\,IIi~-:::;':'.:'i .. :.'PPt!;:j" ,')'",;" "";,;,(' TOTj\I,/;;;'~'-
4,600 100 I 230 I 10,580.00
I
I
I
I
I--
I
'1'..1,.1 III1C, $ 10,560.00
II'e' t"'''I') I)"" 1",,'1')
ii,~~i!;il~lt,,:;j;~i'!:i'!\!! :[Et!;i:1P ,i: Wlllili "-:~r~jl,i,mdi'i .~I)WJI,Jluii~ , H'i;,: ',TOTM;"
4,6110 100 I 138 I 0 " I 16,652.00
I
$ _.:.....
I
I
I
I
Tulnl tnmm",lil} /l.Jld I)WII IIIUlIl: I 16,652.00
~ :,,1 !;rUlld l'o[~1: $ 27,232.00
111'~
HI'~
SIIMMAn\'1
V(lriO\~ E-.:~i~lillg: L(1111[1..: $
lllCl\H~1 ion: $
Eslimated Energy Cost Savings
27,232'00
10,626.00
DISCLAIMER: The information presented !)ere Is based on Ughling-Coun! ASSllmplions provided by
U1e City of Chula Vista. SDG&E does no! guarantee the future results for individual customers based on
this data. SDG&E makes no warranty regarding tile representations found in the results
Incentive Annual
level Electric
Savings
$/kWh kWh
0.05 1362155 $
Incentive
amount
estimate
43,107.75
Hi~plan~!lll;nt LiJ::lIl~
l!,o1"~ UI""lh",:t~l/nl!!"1
(lrI,
" , '"
':;Qtliiilil,y:,:,::,,:";'" :'cWfI\tllgf;':;': ,,,,, ,":'" ";;:i'}:\J.1J(!::! ;';,1: :iTO.TAh: ';r
1-_'<1.600 55 Induction I 0.90 I 4,140.00
f-- - I
- I
l- I
.- I
I-- I
l- I
T(,IIII 1.i1)(1 $ 4,140.00
--
fJ"'1 h''''I') (1"-"),,"'1')
i'Q:iillililfv::Y:';:'" 1VII}IIIJIj/';!;'.; ;':,/:""" ";;~~:i,.!\ihoAi~;i ':i~~fI)''i.'~t)hiiiW ., ::::ii ::';ffJrJ-\L"Y'
4,600 55 Induction I 1.32 $ 009 I 6,486.00
I
- I
s
,
I
I
-- - 'l'O)Ir,] (:')lm"",1;1..- 1>"'11 IImlll, $ 6,486.00
",..I
I; ,i;I'I,,,.,'''''1 t;undn,bl: $ 10,626.00
-
;'lUTES,
TA~es and Sl1rrJlarges are nol im::llided II! Ihis Analysis.
Tills. fll1alysis assumes the lIsa of higlll10w pressure sodium vapor lamps ami metal halide lamps equipped
wllh regulalorballasls
Tolol Mouthly kWh's afe calculated based 011 per-lamp waHages alld 4,1G5 annllal op~rating hours
ll!;l!~.fu:~/1LQi!
Sr;hedula EECC Commodity Rate $006899 (per kWh)
Schedule OWR-eC: $0.00491 {per kWh;
Attachment D
APPLICATION FOR ENERGY COMMISSION FINANCING
1. APPLICANT INFORMATION
Applicant: City of Chula Vista
DUNS' Number: 078726551
Attach additional documentation (see Table on previous page showing items to attach to
application)
Mailing City: Chula Vista Zip: 91910
Address: 276 Fourth Avenue
Street City: Same Zip: Same
Address: Same
County: San Die90 County
Contact Title: Environmental Resource Manager
Person: Brendan Reed
E-mail: breed@cLchula- I Phone: 619-409-5889 I Fax: 619-476-5310
vista. ca. us
"'DUNS Number is issued by Dun & Bradstreet (D&8). It is a unique nine digit identification number.
To request your D-U-N-S Number via the Web go to: www.dnb.com/usldu/1s_update
2. PROJECT INFORMATION
A. Has any funding (such as local funds or other available funds) been previously
committed or approved for this project?
0'"Yes
o No
If yes, please complete Section B:
B.
Source of Funds approved/committed: Energy Efficiency & Conservation Block
Grants
Provide details: Funding has been allocated & received for the municipal solar
photovoltaic project
Amount of funding approved: $874,300
ARRA loan funds may only be used to supplement and may not be used to supplant funds
already committed or expected to be received in support of the loan funded project.
8-16
For Help Call (916) 654-4104
C. Has your agency applied for, expect to apply for, or received any utility rebates/incentives?
~es If yes, please complete Section D:
o No
D.
Source of Rebates/Incentives: San Diego Gas & Electric/CA Solar Initiative
Amount: $791,919
3. PROJECT SCHEDULE
Project
Estimated start date:
Project
Estimated completion date:
. Projects must be completed and loans fully disbursed on or before
March 31,2012.
4. PROJECT BUDGET
Total project costs
(include all installation costs): $3,666,025
Amount requested from
the Energy Commission: $1,999,806
5. CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) COMPLIANCE
A. Is there documentation demonstrating your compliance with CEOA?
~Yes, Go to B.
o No, STOP: Please complete CEOA compliance documentation before submitting
application.
B What finding did your governing body make? Activity funded by the loan is:
~ Not a project.
Ef"ls a project, and is exempt: List applicable exemption:
_ Statutory (list code section):
7Categorical (list section from CEOA Guidelines): _14 CCR I ~Q 3
o Is a project that is not exempt.
Applicant prepared the following environmental document.
_ Initial study + Negative Declaration
_ Initial study + Mitigated Negative Declaration
8-17
_ Environmental Impact Report
_ Other (describe)
Notice of Determination filed? Date:
8-18
6. SINGLE AUDIT ACT REQUIREMENTS
Please select one of the following:
lit' We are in full compliance with Single Audit Act requirements.
o We are exempt from Single Audit Act requirements.
o We are unsure whether we are in compliance with the Single Audit Act requirements.
We have contacted the California State Controller's Office at
singfeaudits@sco.ca.gov to determine our status.
o We are not in compliance with Single Audit Act requirements. Please explain:
7. WHERE DID YOU HEAR ABOUT OUR PROGRAM?
Please tell us where you heard about our loan program.
B""" Energy Commission Website
o Energy Commission Staff Presentation
o Literature at Trade Show or Workshop
o Utility Company
o Recommendation by Another Public Agency
o Other (please specify)
8. CERTIFICATION
To the best of my knowledge and belief, the data in this application are correct and
complete.
Name of Authorized
Representative: Jim Sandoval
Title: City Manager
Signature of Authorized
Representative:
Date: 11/12/09
Fax: 619-409-5884
8-19
PROPOSED SOLAR PV & LIGHTING RETROFIT PROJECTS
City of Chula Vista
CEC Energy Efficiency Loan - Phase 2(b)
Updated: December 2,2009
Annual Average Annual Cost Gross Project Estimated EECBG Net Simple
Measure # of Sites Electncal Price Per Net Costs Payback
Savings (kWh) kWh Savings Costs^ Rebate* Amount (yrs)
Upgrade Existing Lighting with Energy Efficient 52 545,590 $ 0.13 $ 70,927 $ 439,623 $ 30,723 1$ - $ 408,900 5.77
Varieties
Install Solar PV Systems (490 kW DC) 11 716,858 Varies $ 111,747 $ 3,226,402 $ 761,196 $ 874,300 $ 1,590,906 14.24
1,262,448
$ 182,674 $ 3,666,025 $ 791,919 $ 874,300 $ 1,999,806
10.95
. Lighting rebate based on $0.05 (outdoor) and $0.19 (indoor), while CSt rebate based on $1.85/watt
'f ^ $19,472 of contingency funding added to Multi-Site Lighting project costs
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8-23
RESOLUTION NO. 2010-
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA (I) AMENDING RESOLUTION NO. 2007-241
AND 2009-117 TO AUTHORIZE CALIFORNIA ENERGY
COMMISSION LOAN AND SDG&E ON-BILL FINANCING
APPLICATION SUBMITTALS FOR UP TO $9.1 MILLION
WITH INTEREST RATES UP TO 3.95% AND (2) APPROVING
LOAN APPLICATIONS TO THE CALIFORNIA ENERGY
COMMISSION FOR AN INDUCTION STREET LIGHT
RETROFIT PROJECT (UP TO $2,051,600) AND MUNICIPAL
SOLAR PHOTO VOLTAIC & MULTI-SITE LIGHTING
PROJECT (UP TO $1,999,806)
WHEREAS, the City of Chula Vista has been very proactive over the last 20
years in working to reduce energy consumption and peak energy demand in its
municipal operations; and
WHEREAS, the City is committed to regularly retrofitting its facilities with
more efficient technologies and installing renewable energy systems to meet at least
20% of its energy demand; and
WHEREAS, to facilitate the retrofitting of existing municipal structures, the
City Council previously adopted Resolution No. 2007-241 and 2009-117,
authorizing staff to pursue up to $9.1 million in financing from the California
Energy Commission Loan (3.95% interest rate) or San Diego Gas & Electric On-
Bill Financing (0% interest rate) programs; and
WHEREAS, both financing programs are 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, once the loans are repaid, the energy cost savings would be
realized in the General Fund. In addition, the City would realize more immediate
energy cost savings as utility rates increase every few years and as routine
equipment replacement purchases are avoided; and
WHEREAS, since the adoption of Resolution No. 2007-241 and 2009-117,
the California Energy Commission has reduced the interest rate of its loan program
to 3.0% (or 1.0% for select federal stimulus-supported projects); and
WHEREAS, the California Energy Commission is now requesting that the
City Council clarify its approval of submitting and entering into loan agreements
with interest rates UP to 3.95%; and
8-24
Resolution No. 2010-
Page 2
WHEREAS, these lower rates will greatly benefit the City by reducing the
overall finance costs for implementing energy efficiency and renewable energy
projects and shorten their payback periods; and
WHEREAS, the City of Chula Vista has identified two projects - Induction
Street Light Retrofit Project and a Municipal Solar Photovoltaic & Multi-Site
Lighting Retrofit Project - as top priorities for retrofitting municipal facilities; and
WHEREAS, City staff has subsequently prepared loan applications for
submittal to the California Energy Commission to finance the two priority projects.
NOW THEREFORE, BE IT RESOLVED that the City Council of the City of Chula
Vista does hereby:
(I) Amend Resolution No. 2007-241 and 2009-117, and authorizes staff to
pursue California Energy Commission and San Diego Gas & Electric On-
Bill Financing application submittals for up to $9.1 million with interest
rates UP to 3.95% and does hereby authorize the City Manager or his
designee to negotiate and execute all loan and/or program documents
associated therewith.
(2) Approve, specifically, the submittal of loan applications to the California
Energy Commission for an Induction Street Light Retrofit Project for up to
$2,051,600 and for a Municipal Solar Photovoltaic & Multi-Site Lighting
Retrofit Project for up to $1,999,806.
Presented by
Approved as to form by
a)ue~J
Michael Meacham
Director of Conservation and
Environmental Services
~C
8-25