HomeMy WebLinkAboutReso 2010-064RESOLUTION NO. 2010-064
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA (1) AMENDING RESOLUTION NOS. 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)
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 Nos. 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 Nos. 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
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
Resolution No. 2010-064
Page 2
WHEREAS, the City of Chula Vista has identified two projects -Induction Street Light
Retrofzt 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:
(1) Amend Resolution Nos. 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 un 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
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Michael Meacham
Director of Conservation an
Environmental Services
Approved asto form by
Resolution No. 2010-064
Page 3
PASSED, APPROVED, and ADOPTED by the City Council of the City of Chula Vista,
California, this 23rd day of March 2010 by the following vote:
AYES: Councilmembers: Bensoussan, Ramirez, Thompson and Cox
NAYS: Councilmembers: None
ABSENT: Councilmembers: None
ABSTAIN: Councilmembers: Castaneda
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Cheryl Cox, I~ yor
ATTEST:
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Donna R. Norris, C C, 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. 2010-064 was duly passed, approved, and adopted by the City Council at a
regulaz meeting of the Chula Vista City Council held on the 23rd day of Mazch 2010.
Executed this 23rd day of March 2010.
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Donna R. Noms, CMC, City Clerk