HomeMy WebLinkAbout2010/04/13 Item 3
CITY COUNCIL
AGENDA STATEMENT
~\~ CllYOF
~ CHUIA VISTA
ITEM TITLE:
SUBMITTED BY:
REVIEWED BY:
APRIL 13, 2010, Item~
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA
VISTA (1) ACCEPTING $1,999,806 IN LOAN FUNDS FROM THE
CALIFORNIA ENERGY COMMISSION TO INSTALL ENERGY
EFFICIENT LIGHTING AND SOLAR PHOTOVOLTAIC SYSTEMS
AT MULTIPLE MUNICIPAL FACILITIES, (2) APPROPRIATING
$1,999,806 IN LOAN FUNDS TO THE CITY'S ENERGY
CONSERVATION FUND, (3) ESTABLISHING A NEW CAPITAL
IMPROVEMENT PROJECT - MULTI-SITE ENERGY EFFICIENT
LIGHTING (GG210), (4) AMENDING THE FISCAL YEAR 2009-2010
CAPITAL IMPROVEMENT PROGRAM, AND (5) APPROPRIATING
$1,999,806 OF ENERGY CONSERVATION FUNDS TO G0210 AND
TO EXISTING CIP GG208 (MUNICIPAL SOLAR PHOTOVOLTAIC
SYSTEMS)
DIRECTOR OF CONSERVATION TIRONMENTAL SERVICEQ
DIRECTOR OF PUBLIC WORKS C!' \t:::>
CITY MANAGE~
ASSISTANT CIT~AGER '77
4/5THS VOTE: YES [gJ NO D
SUMMARY
As part of the City's climate protection efforts, Chula Vista has been awarded a low-interest loan
from the Califomia Energy Commission to install energy efficient lighting and solar photovoltaic
systems at multiple municipal sites to reduce energy use and lower associated greenhouse gas
emissions. The $1,999,806 loan will be combined with over $1.6 million in state and federal
incentives and grants to lower the project's net implementation costs. The loan will be repaid (<11
years simple payback) through the annual energy cost savings estimated at $182,674.
ENVIRONMENTAL REVIEW
The Environmental Review Coordinator has reviewed the proposed project for compliance with
the California Environmental Quality Act (CEQA) and has determined that the project qualifies for
a Class 8 categorical exemption pursuant to Section 15308 [Actions by Regulatory Agencies for
Protection of the Environment] of the State CEQA Guidelines because the energy savings resulting
trom these energy efficiency and renewable energy projects will contribute to reducing Chula
Vista's greenhouse gas or "carbon'" emissions thus improving air quality. Therefore, no further
CEQA environmental review is necessary.
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APRIL 13,2010, Item2
Page 2 of 3
RECOMMENDATION
Council adopt the resolution.
BOARDS/COMMISSION RECOMMENDATION '
The Energy Efficient Lighting and Solar Photo voltaic projects were presented to the Resource
Conservation Commission (RCC) at their April 27, 2009 meeting as part of the City's Energy
Efficiency & Conservation Block Grant Strategy. Although the RCC did not take formal action,
the Commission expressed general support for the Strategy and the identified projects.
DISCUSSION
As part of the City's Energy Efficiency & Conservation Block Grant Strategy, staffwas authorized to
pursue up to $9.1 million of low-interest financing from the California Energy Commission (CEC)
and San Diego Gas & Electric (SDG&E) to fund the installation of energy efficiency and renewable
energy technologies at municipal facilities (as amended under Resolution #2010-064). Under the
resolution, the City Manager was also authorized to negotiate and execute all documents associated
with the low-interest financing.
As a result, the City of Chula Vista was recently awarded a $1,999,806 California Energy
Commission loan to [mance the installation of energy efficient lighting and solar photovoltaic systems
at multiple municipal sites. Specifically, the loan will fund the retrofitting of existing, inefficient
lighting at 52 buildings and facilities with induction lamps which use approximately 45% less energy
and have 4-6 times longer bulb life. These efficiency improvements will be complemented by the
installation of approximately 500 kW of solar photovoltaic systems at 11 facilities which will provide
on-site power generation during peak daytime energy periods (when energy costs are highest). Both
projects will contribute to reducing Chula Vista's overall energy consumption and its associated
greenhouse gas emissions.
The 3.0% interest loan will be repaid through the projects' resulting energy cost savings estimated at
$182,674 annually. The loan will also be supplemented by $874,300 of Energy Efficiency &
Conservation Block Grants and $772,817 of California Solar Initiative incentives further reducing the
projects' net implementation costs. Once the loan is repaid (simple payback = 10.95 years), the City's
General Fund would realize the full energy cost savings annually. In addition, the City will realize
more immediate energy cost savings as utility rates increase every few years and as routine
replacement lighting purchases are avoided.
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 subjectofthis action.
CURRENT YEAR FISCAL IMPACT
The CEC loan, in conjunction with over $1.6 million in federal and state grants/incentives, will
cover all capital improvement costs associated with installing energy efficient lighting and solar
photovoltaic systems. City staff time costs associated with implementing the project will be
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APRIL 13, 2010, Item~
Page 3 of 3
supported through the SDG&E Local Government Partnership which is funded by California
utility ratepayers under the auspices of the California Public Utilities Commission.
At this time staff is recommending appropriating the loan funds to two Capital Improvements
Projects as follows:
CIP No.
GG208
GG210
$1,590,906
$408,900
$1,999,806
ONGOING FISCAL IMPACT
The $1,999,806 loan would be fully offset by $182,674 in estimated annual energy 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 would begin to accrue net
annual savings of at least $182,674 on its energy bills, which are paid from the City's General
Fund appropriations. The retrofit projects' cost, projected energy savings, and payback period
were verified by the California Energy Commission.
ATTACHMENTS
Attachment A - Financing Authorization Resolution
Attachment B - CEC Loan Agreement
Prepared by:
Brendan Reed, Environmental Resource Manager, Conservation & Env. Services
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ATTACHMENT A.
RESOLUTION NO. 2010-064
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA (1) AMENDING RESOLUTION NOS. 2007-241
AND 2009-117 TO AUTIIORIZE 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
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Resolution No. 2010-064
Page 2
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 TIIEREFORE, BE IT RESOLVED that the City Council of the City ofChula 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 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
::iii2 )
[ B' ',/. ;, d ;U7/;ec
~;f Attorney
O~~1\~
Michael Meacham
Director of Conservation an - .
Environmental Services
. .
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. ______m
Resolution No. 2010-064
Page 3
PASSED, APPROVED, and ADOPTED by the City Council of the City ofChula Vista,
California, this 23rd day of March 2010 by the folJowing vote:
AYES: Councilmembers:
Bensoussan, Ramirez, Thompson and Cox
NAYS: Councilmembers:
None
ABSENT: Councilmembers:
None
ABSTAJN: Councilmembers:
Castaneda
c~~#?r-
ATTEST:
d ~ t /VQhk(/J
Donna R. Norris, cr.1c, 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
regular meeting of the Chula Vista City Council held on the 23rd day of March 2010.
Executed this 23rd day of March 2010.
J~t~A~
Donna R. Norris, CMC, City Clerk
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M-Itu:Jl men+ :3
ENERGY CONSERV A nON ASSISTANCE ACCOUNT LOAN AGREEMENT
LOAN NUMBER: 009-09-ECD
PRINCIPAL AMOUNT: 1,999,806.00
PROJECT TERM: 2/16/10-2/16/11
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 ofChula 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 seq., of the California
Public Resources Code (the "Energy Conservation Assistance Act"), the
Commission has approved Borrower's loan application dated November 12,
2009, 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 one million nine hundred ninety nine
thousand eight hundred six dollars ($1,999,806.00), evidenced by a Promissory
Note (the "Promissory Note") for loan number 009-09-ECD
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. LOAN 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 or a feasibility study by a consultant under contract to the
Commission and are financing the technical assistance or feasibility study
reimbursement through this Loan: The Commission will reimburse itself from
the Borrower's Loan proceeds for the cost of the technical assistance or
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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 $_ NI 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.
S. 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. PREP A YMENT
Borrower shall have the right to prepay all or any part of the amount of this Loan at
any time without penalty.
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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. ACCOUNTS
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 necessary.
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, town, 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,
and the information and data contained in the Borrower's loan application and
technical study. The following will not affect the Commission's initial finding
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of energy cost savings, and are not a basis for claiming a lack of energy
savings: a) changes in energy use and/or 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 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 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
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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. Borrower shall not place any liens or encumbrances on the Project until the
Loan is fully repaid.
1. 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.
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11. REPORTING
A. Progress reports are due quarterly until Project completion. Reports are due as
follows:
Quarter Report Due
January-March April 5
April-June July 5
July-September October 5
October-December January 5
A progress report submitted with an invoice, in accordance with Section 11.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 Coriunission.
F. The Borrower shall submit reports regarding energy savings as described in
Section 9.D above.
12. GENERAL TERMS
A. Indemnification by 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.
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B. Ownership of Equipment 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. Independent Capacity. 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
Commission 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 (1) 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 provIsIOn 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 affected
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
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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 (Goverrunent
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 Energy 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. Prevailing Wage. 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 fund all or a portion of this Loan and, in consideration of such funding,
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
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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-1, 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
-9-
Rev. 1/4/06
IN WITNESS WHEREOF, this Loan Agreement has been executed by the parties hereto,
STATE OF CALIFORNIA - CALIFORNIA
ENERGY COMMISSION
BORROWER (If other than an individual, state
whether a corporation, partnership, etc,)
City of Chula Vista
NAME OF BORROWER
Sherry Mediati
PRINTED NAME OF AUTHORIZED SIGNATURE
J A+-,[ 5 SAN tic VAL-
PRINTED NAME OF AUTHORIZED SIGNATURE
~~t\~~~)
AUTHORIZED NA RE
ZED SIGNATURE
MANAGER, GRANTS AND LOANS OFFICE
TITLE
C n,< t'\AV'JAb f-R-
TITLE
S/?,S /10
. I
3/Lf/?P/iJ
DATE' '
DATE
MAIL ADDRESS:
City of Chula Vista
276 Fourth Avenue
Chula Vista, CA 91910
AMOUNT
ENCUMBERED
i FISCAL ! FUND-Expenditure Acct for Bond Issue
YEAR i From 9326 Fund Per Pub Res 25417.5
LOAN NO.
$1,999,806.00
2009/2010 ECAA-0033002-3360-95-501 CH611
Statute of 1995
009-09-ECD
APPROPRIATION ORG. I
Budget List Number
401.007D
APPROPRIATION AUG
Program-0033002 Repayments, Releases
and Earnings
LINE ITEM
ALLOTMENT
4400-626.04-44034
LINE ITEM
ALLOTMENT
I HEREBY CERTIFY UPON MY OWN PERSONAL KNOWLEDGE THAT BUDGETED FUNDS ARE
A V AILABLE FOR THE PERIOD AND PURPOSE OF THE EXPENDITURE STATED ABOVE.
SIGNATURE OF ACCOUNTING OFFICER
~..;t--
DATE
,q;)r;)JD
ECAA Public Entity Loan Agreement
-10-
Rev. 1/4/06
EXHIBIT A
BUDGET DETAILS
This loan is made to the City of Chula Vista ("Borrqwer") for an Energy Savings Project.
The project consists of an upgrade to the lighting system and a 490 kW photovoltaic
system.
The Table below summarizes the estimated project cost(s), saving(s) and simple
payback(s) for the project.
TABLE 1: Estimated Energy Efficiency Project Savings:
Energy Efficiency Projects
Estimated
Total
Project
Cost
Energy
Commission
Loan
490 kW solar photovoltaic system at 11 City
sites. $3,226,402
Upgrade existing lighting with a variety of energy
efficient'lighting $439,623
GRAND TOTAL ALL MEASURES
$3,666,025 $1,999,806
Estimated
Annual
Energy
Cost
Savings
Payback'
(Years)
$111,747
14.24
$70,927
5.77
$182,674
10.95
, Payback based on the loan amount of $1 ,999,806, the simple payback is 10.95 years.
The Borrower shall implement all projects in Table 1. Failure to implement all
projects may reduce the approved loan amount. If necessary, the reduced loan
amount will be determined by multiplying the annual energy cost savings by 11 or
the total project cost, whichever is less.
If the Borrower has received disbursements that exceed the amount of the reduced
loan, the Borrower shall refund the difference to the Energy Commission.
A-1
EXHIBIT B
PROMISSORY NOTE
LOAN NUMBER:
PRINCIPAL AMOUNT:
INTEREST RATE:
009-09-ECD
$1,999,806.00
3%
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 one million nine
hundred ninty nine thousand eight hundred six dollars ($1,999,806.00) 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 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 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 trom 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, 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
ECAA Promissory Note
B-2
Rev. 11/12/03
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 bankruptcy, reorganization, readjnstment of 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. 11112/03
9. Any 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.
11. 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 Commission 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.
Citv of Chula Vista
BORROWER
::r ~<(S S,4NOQV"\L
PRINTED NAME OF AUT
REPRES NT ATE
RIZED SIGNATURE
t'\ AN PeG ! ,<...
TITLE
DATE it.r!rxr()
ECAA Promissory Note
B-4
Rev. 1111 2/03
EXHIBIT C
ESTIMATED AMORTIZATION SCHEDULE
C-l
State of California
Energy Resources Conservation
and Development Commission
1516 Ninth Street
Sacramento, California 95814-5512
Estimated Loan Amortization Table
Loan Number:
Recipient:
Loan Amount:
Interest Rate:
009-09-~CD
City of Chula Vista
$1,999,806.00
3.00%
Number of Payments:
Estimated Disbursement Date:
Estimated Project Completion Date:
Annual Energy Savings:
28
8/16/2010
2/16/2011
$182,674.00
Trans # 'Paynient'Date " :Accrued Interest Payment Amount Interest Payment :Principal Payment Principal Balance
i?Ii~yf~erner~ T;.';S~~C1??&r1~jJ~j~Qi:9!1:e;;:it~~;~~::;\'?~::')$9'~Q9.m~'~~:( $i'/99~)8Q~:pO)~+::':~:~t iWf$'i:'?:~-:~;j$q.:_o6:'~';:}fil(n;2~,$:~~~;P9}f;;~~~~~$1)9].~J-8Q~~OQ:
Payment 1 12/22/2011 $81,033.23 $90,219.03 $81,033.23 $9,185.80 $1,990,620.20
Payment 2 6/22/2012 $29,941.11 $90,219.03 $29,941.11 $60,277.92 $1,930,342.28
Payment 3 12/22/2012 $29,034.46 $90,219.03 $29,034.46 $61,184.57 $1,869,157.72
Payment 4 6/22/2013 $27,960.55 $90,219.03 $27,960.55 $62,258.48 $1,806,899.24
Payment 5 12/22/2013 $27,177.74 $90,219.03 $27,177.74 $63,041.29 $1,743,857.95
Payment 6 6/22/2014 $26,086.20 $90,219.03 $26,086.20 $64,132.83 $1,679,725.13
Payment 7 12/22/2014 $25,264.91 $90,219.03 $25,264.91 $64,954.12 $1,614,771.00
Payment 8 6/22/2015 $24,155.20 $90,219.03 $24,155.20 $66,063.83 $1,548,707.18
Payment 9 12/22/2015 $23,294.25 $90,219.03 $23,294.25 $66,924.78 $1,481,782.40
Payment 10 6/22/2016 $22,287.63 $90,219.03 $22,287.63 $67,931.40 $1,413,851.00
Payment 11 . 12/22/2016 $21,265.87 $90,219.03 $21,265.87 $68,953.16 $1,344,897.84
Payment 12 6/22/2017 $20,118.20 $90,219.03 $20,118.20 $70,100.83 $1,274,797.01
Payment 13 12/22/2017 $19,174.34 $90,219.03 $19,174.34 $71,044.69 $1,203,752.32
Payment 14 6/22/2018 $18,006.82 $90,219.03 $18,006.82 $72,212.21 $1,131,540.11
Payment 15 12/22/2018 $17,019.60 $90,219.03 $17,019.60 $73,199.43 $1,058,340.68
Payment 16 6/22/2019 $15,831.62 $90,219.03 $15,831.62 $74,387.41 $983,953.27
Payment 17 12/22/2019 $14,799.74 $90,219.03 $14,799.74 $75,419.29 $908,533.97
Payment 18 6/22/2020 $13,665.35 $90,219.03 $13,665.35 $16,553.68 $831,980.29
Payment 19 12/22/2020 $12,513.90 $90,219.03 $12,513.90 $77,705.13 $754,275.16
Payment 20 6/22/2021 $11,283.13 $90,219.03 $11,283.13 $78,935.9.0 $675,339.26
Payment 21 12/22/2021 $10,157.84 $90,219.03 $10,157.84 $80,061.19 $595,278.07
Payment 22 6/22/2022 $8,904.71 $90,219.03 $8,904.71 $81,314.32 $513,963.75
Payment 23 12/22/2022 $7,730.58 $90,219.03 $7,730.58 $82,488.45 $431,475.29
Payment 24 6/22/2023 $6,454.40 $90,219.03 $6,454.40 $83,764.63 $347,710.66
Payment 25 12/22/2023 $5,229.95 $90,219.03 $5,229.95 $84,989.08 $262,721.58
Payment 26 6/22/2024 $3,951.62 $90,219.03 $3,951.62 $86,267.41 $176,454.17
Payment 27 12/22/2024 $2,654.06 $90,219.03 $2,654.06 $87,564.97 $88,889.21
Payment 28 6/22/2025 $1,329.69 $90,218.89 $1,329.69 $88,889.20 $0.00
Created by: ENERGy\Skawilll on 2/16/2010 5:14:42 PM
C2
EXHIBIT D
TAX CERTIFICATE
LOAN NUIVlBER:
REVENUE BOND SERIES:
REVENUE BOND ISSUANCE DATE:
009-09-ECD
2003A / 2005A
AnrillO, 2003 / 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 "Cornn1ission"), to [mance 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 Proiect. 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 management 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 of 1986, 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 with Revenue Procedure 97-13.
ECAA Tax Certificate
D-2
Rev. 12/20/04
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 portion of the proceeds ofthe Loan
to pay the principal of or interest on any outstanding indebtedness of the Borrower.
4. Permitted Bases for Paving Expenses. All proceeds of the Loan drawn by the Borrower
shall either (I) 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. Capital Expenditures 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 Proiect. The Project has a reasonably expected economic that is at
least equal to the term of the Loan.
7. No Replacement of Other Monevs. 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. Pavment 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 financial difficulties. Nothing in this Section is intended to affect the
ECAA Tax Certificate D-3 Rev. 12/20/04
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 purchase any of the Bonds, on the open
market or otherwise.
Citv ofChula Vista
BORROWER
'1.5'.~ G GOO {, '4 0
FEDERAL EMPLOYER IDENTIFICATION NUMBER
J A,ML "> St'N\>OcrvA-L
PRINTED NAME OF AUTHORIZED
REP SENTA IVE
CfT'-{ MA-NA-r-, uP-
TITLE
iLl/ ?ViZ'
DA E
ECAA Tax Certificate
D-4
Rev. 12/20104
RESOLUTION NO. 2010-
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA (1) ACCEPTING $1,999,806 IN LOAN FUNDS
FROM THE CALIFORNIA ENERGY COMMISSION TO INSTALL
ENERGY EFFICIENT LIGHTING AND SOLAR PHOTO VOLTAIC
SYSTEMS AT MULTIPLE MUNICIPAL FACILITIES, (2)
APPROPRIATING $1,999,806 IN LOAN FUNDS TO THE CITY'S
ENERGY CONSERVATION FUND, (3) ESTABLISHING A NEW
CAPITAL IMPROVEMENT PROJECT - MULTI-SITE ENERGY
EFFICIENT LIGHTING (GG2l0), (4) AMENDING THE FISCAL
YEAR 2009-2010 CAPITAL IMPROVEMENT PROGRAM, AND
(5) APPROPRIATING $1,999,806 OF ENERGY CONSERVATION
FUNDS TO GG2l0 AND TO EXISTING CIP G0208 (MUNICIPAL
SOLAR PHOTOVOLTAIC SYSTEMS)
WHEREAS, as part of the City's Energy Efficiency & Conservation Block Grant
Strategy, staff was authorized to pursue up to $9.1 million of low-interest financing from the
California Energy Commission (CEC) and San Diego Gas & Electric (SDG&E) to fund the
installation of energy efficiency and renewable energy technologies at municipal facilities (as
amended under Resolution #2010-064); and
WHEREAS, as a result, the City of Chula Vista was recently awarded a $1,999,806 CEC
loan to finance the installation of energy efficient lighting and solar photovoltaic systems at multiple
municipal sites; and
WHEREAS, The loan will also be supplemented by $874,300 of Energy Efficiency &
Conservation Block Grants and $772,817 of California Solar Initiative incentives further reducing
the projects' net implementation costs; and
WHEREAS, these projects will contribute to reducing Chula Vista's overall energy
consumption and its associated greenhouse gas emissions; and
WHEREAS, once the loan is repaid (simple payback = 10.95 years), the City's General
Fund would realize the full energy cost savings annually; and
WHEREAS, in addition, the City will realize more immediate energy cost savings as
utility rates increase every few years and as routine replacement lighting purchases are avoided.
NOW, THEREFORE BE IT RESOLVED that the City Council of the City of Chula
Vista does hereby:
1. Accept $1,999,806 in loan funds from the California Energy Commission to
install energy efficient lighting and solar photovoltaic systems at multiple
municipal facilities; and
3-7
2.
Appropriate $1,999,806 in loan funds to the ClP expenditure category of the
City's Energy Conservation Fund; and
3.
Establish a new Capital Improvement Project - Multi-Site Energy Efficient
Lighting (GG210); and
4.
Appropriate Energy Conservation Funds to GG210 and existing ClP GG208
(Municipal Solar Photovoltaic Systems).
Presented by
~~proved as to f~rm ~y )
~ . ,('.a/
,/ 111:.{..
/ ILF
JiLart ry,Iiesfe
/ City Attorney
v
Michael Meacham
Director of Conservation and
Environmental Services
3-8