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HomeMy WebLinkAboutReso 1989-13945 RESOLUTION NO. 13945 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING AGREEMENT BETWEEN THE CITY OF CHULA VISTA AND SAN DIEGO GAS AND ELECTRIC COMPANY TO UTILIZE THERMAL ENERGY STORAGE (TES) AT THE LIBRARY AND AUTHORIZING THE MAYOR TO EXECUTE SAID AGREEMENT The City Council of the City of Chula Vista does hereby resolve as follows: NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chula Vista that that certain agreement between THE CITY OF CHULA VISTA, a municipal corporation, and SAN DIEGO GAS AND ELECTRIC COMPANY to utilize thermal energy storage (TES) at the Library dated the 25th day of January , 1989, a copy of which is attached hereto and incorporated herein, the same as though fully set forth herein be, and the same is hereby approved. ~ BE IT FURTHER RESOLVED that the Mayor of the City of Chula Vista be, and he is hereby authorized and directed to execute said agreement for and on behalf of the City of Chula Vista. Presented by Approved as to form by / . ttor~ P~blic Works ' ~.~ ' 0374a ADOPTED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF Ch__A VISTA, CALIFORNIA, this 24th day of. January 19 89 , by the following vote, to-wit: AYES; Councilmembers McCandliss, Nader, Cox, Malcolm, Moore NAYES: Councilmembers None ABSTAIN: Councilmembers None ABSENT: Councilmembers None ....... "~"'~"-~-~Ma City of Chula Vista ST, . OF CALIFORNIA ) COUNTY OF SAN DIEGO ) ss. CITY OF CHULA VISTA ) I, JENNIE M. FULASZ, CMC, CITY CLERK of the City of Chula Vista, California, DO HEREBY CERTIFY thor the above and foregoing is a full, true and correct copy of RESOLUTION N0. 13945 ,and that the same has not been amended or repealed DATED City Clerk , :C-660 THERMAL ENERGY STORAGE AGREEMENT THIS AGREEMENT is made e~d antered by and between SAN DIEGO GAS & ELECTRIC COMPANY ( 'SDG&E' ), a California corporation, and City of Chula Vista..herein·fret referred to as 'Custo~eE' o " thermal 1. Customer 'plans o i · a11, a artial ener store e s tam in the c t . 2. Customer desires to utilize thermal energy storage in said Facllit][, . Is ' opposed. to . a: conventional air-conditioning s~s~em, provided'= ,~hat SDG&E share· ~'ln:~he' additional cons~ruction end.-equilmmnt costs:' associated with, a ~hermal s~orage cooling s~stem. 3. SDG&E is desirous of fostering the use by private en~erprise of new technologies which will contribute to the reduc~ion of peak period electrical demand and to the increa·e of electrical demand and consumption during off-peak periods. 4. It has been demonstrated that the use of thermal energy storage for space cooling results in the shift of subs~antial electrical demand and consumption from peak off-peak periods. AP 1513 Approval 182-0793 (B) SDG&E Form 143-1459B ~:~- Rev. 6/15/88 .. :..:- .. ....... :: :m I: Is " IIIII II I ....................... I I I NOW, THEREFORE, in consideration of the mutual covenants contained herein and other good and valuable consideration, the adequac~ of which is hereby acknowledged, the parties agree as followst 1. TER~. This Agreement shall cmnce on the date it is executed by SDG&Z, and shall continue in force for fifteen {15) years frcm the date final payment, as provided ~ln Section .5 is ma~.e. 2. ~COPE 2.1 Customer will proceed to construct and complete said Facility, including the thermal storage cocling system, on or before December 31. 1992. 2.2 Cuetuner will. cause to be included in' the construction contract provisions' for the acquisition and installation of a thermal enerQ3F storage system and all appurtenant and auxiliary compressors, condensers', pumps, air handlers, piping and related equipment required to provide 'for an operable thermal storage cooling system with a maximum rated capacity of approximately 340 ton-hours. 3. SYSTEM SELECTIONANDOWNERSHIP Selection of th~,.~hqml storage cooling system described in Section 2.2, is the sole responsibility of Customer. Customer . shall have total ownership of all equipment associated'with the thermal storage cooling system. SDG&E has evaluated the sizing of the system for the. sole purpose of determining Customerrs eligibility for this programs SDG&E makes no representations as to the sizing of the system for any other purposes of Customer. Furthermore, SDG&E makes no representations as to the reliability and/or efficiency of the thermal storage system selected, or any components thereof. Customer ~hall indemnify SDG&E from any liability relating to the systemts reliability, efficiency and/or performance. -2- 4. CALCULATION OF INDUCEMENT PA~ENT "' 4.1 A one-tim financial contribution toward the added costs of installing a cool storage system; (ice, chllled-water~ eutec~lc salt or similar thermal energy storage system) in lieu of, to replace. a conventional air-conditionin refrigeration, or. process cooling system. accordance with the follow~r' ' .ngt ' "" i a. For new building lnStallations;..,the cooling=load uu~d below shall be the design cooling. load a,n tons 'used .to sise.a conventional cooling system for the Customer's application..',SDG&E may require the Customer to provide a cooling. load estimate certified. bY an engineer licensed in the State of California. , ?, .. Total Cooling Load 0-200 Tons 201-1200 Tons )1200 Tons in Tons Funding Levels not 250 S/ton ~!. a25 S/ton a00 S/ton to be Exceededx ' ' b.' For retrofit installations, the cooling load..used below shall be the electric load displaced in kilowatts (kW). thermal storage components as' determined' from instrumentation, equipment specifications, .!og books;,or bills. .'" Total Cooling Load 0-200 kW 201-1200 kW .)1200 kW in kw Funding Levels not to be 250 $/kW -. 225 $/kW 200 $/kW exceeded= AL-TOU Customers · AD Customers 250 $/kW 250 $/kW 4.2 The amount of the calculated'inducement payment made a Customer for the single cool storage application shall be subject to the following limitationsx " a. For all l~sl~allatiolls, SDG&E shall be the~'Sole Judge of Tons or kW of cooling load used to calculate inducement amounts. b. The inducement payment amounts use~ above .... apply to thermal, storage systems with a minimum o! 6.5 ' ton-hours of storage for each ton of conventional design ,~I,... cooling load. Systems with less storage ~ay be accepted&' b~,. -,.~ the inducement Imy~ent amount will be prorated. ..... c. ' SDG&E shall ;have the right to re ea ' Customer participation in the progrexa~ if, in the ~udgement .'of SDG&E, a proposed installation is improperly de s igned ,~: "' ... installed costs of the storage system &re deemei excessive, en alternate type of syste~ w~uld be more suitablei or an e~ually " suitable type of system would be less~.exl~nsive. d. Inducement payments shall be limited to f~mding levels euthorize~ from year to year by the CPUC. 5. pAYMENT at the rate o~.$350 per kW for 46 kW d i Pennants shall be ma · n eccord~Be with the ..'following schedule t . e. Forty getcent ,(40%) o~ the tot&l xpayment due under Section 5.1 upon. delivery to the ~ob site of thermal storage units end receipt by,Customer of a billing for the cost of said units. b. Balance of the total payment due uruler Section 5.1 upon canpletion oi.~ the thermal storage cooling system and all associated components. Verification by' SDG&E to its satisfaction that the thermal storage cocling system has been installed es designed ~ is ogerable is · condition precedent to this final paint., "' 5.2 Requests for each of said payments, together with supporting documentation, shall be su3mitted by Customer to SDG&E. Payment shall be made by SDG&E within 30 days]' of approval by SDG&E of the payment request. Customer agrees to maintain the system ·t · l·v·l which meets or exceed· manufacturer'· ·p, cific·tion·. Cu·tom, r further agrees to do~um, nt it· maintenance of the system and to provide that documentation to SD0&E upon re,test. 7. OpZP TXON 7.1 SDO&E ' · financial contribution to Custonmr, pursuant to Section. 4, is made largely in oonsideration that the installation and eXamration of thm ths~X stoza~s c~X~n~ s~st~ will s~stantially r~ucm ~st~r ' s mla~trical d~nd and cons~ption during ~rl~s o~ ~[k d~ on S~&E'm alsotribal '. ~eneration, tran~ssion, distri~tion ~stam, and will transfer ener~ retirement trm ~ak hours to or~-~ak .hours. 7.2 Accordingly, ~st~r agrees to o~rate the refrigeration c~rassors o~ the theml storage system'during times other than SN&~'s "~ak d~nd ~ri~s" as deZin~ in paragraph 7. ~ for a ~ri~ o~ 15 ~ars rrm the date ~inal paint is made under par·graph 5.~b using only electrical ~er p~chased from S~E. 7.3 S~&E' s current "~ak d~nd ~ri~s" are as follows: May 1 through Saptear 30 . . .11 a.m. - 6 p.m.. .Weekdays* ~tober 1 through April 30 . . . 5 p.m. - 8 p.m.. .Weekdays* *hcept holidays All time ~ri~s listed are applic~le to l~al t~e. 7.4 S~E's "~ak d~nd ~ri~s" are s~Jec~ to change fr~ t~e to ti~. S~E will give notice to ~st~r o~such changes, and ~st~r agrees to obsess such revised "~ak d~ .- ~ri~s" pursuant to provisions of Section 7.2. , ".5 ~e restrictions ~s~ ~ Sections 7.2 and li~idated d~ges set forth in Section 13 shall ~ waived ~or circ~stances, ~currences or events not created, contro11~ or controllable ~ the ~st~r. No waiver of restriction'or ~nalties will ~ grant~ for t~s when S~&E or the California Utility P~er Syst~'s C~rdinetor has declared · Stage I alert, or such other t~s when a dmnd r~uction is retired ~or the =~ o~rating convenience of S~&E. ' ~. -5- 7,6 TES Metering and Rate S~hed~le ...../: a, C~stcmer shall provide st no ,xp~nst ~o', SD~E a metering point lot refrigeration compr,ssors condenser ~s l~d condenser Zans, " ' . 1, N~ installations - ~8ctn~ ~o n~ h~se m~er, 2, ~troJl~ l~tallations - ~Ja~en~' b, ~s~r shall ao~ep~ ,e~l~e at .' the '- ~e metering ~int Zor ~heml ener~ s~orage'~ e~l~n~ a~ the cPuc approved sch~ule for theml ener~ s~orage Zor the 'te~ '. of this agre~n~, ~hedule ~L-~U. Is the' ~rren~ for ~S, ':~ .. ' 8, ~NSPE~ON S~Z rese~es the right to insect. the. ~a~llity. reason~le t~s for the ~se. o~ ~nito~ing .: ' ~st~r compliance with its ~rZo~ obligations ~sr '~his ~gre~n~, ~ls provision shsll~"'nD~'.~se u~n S~Z any~ obligation to ~rZo~ any ins~ction,' 9 CO~LI~CE ~ ~WS . ~s~r and any s~ontractor l~ ~y retain shall ~ de~ed ~o ~ f~iliar wi~h, and a~ all ~s shall c~ly .~: wl~h and obse~e all applic~la lederal, state and local ordinances, riles, re~latio~, execu~ive order~, · zpplic~le safa~y orders ~d all orders or d-trees a~inistra~lve agencies, courts or other legally constitut~ au~hori~ies having ~tsdiction or authority over:~st~r~ S~E, or the Facility which my n~ or hereafter ~xis~, ' '~':...~: ....: ~.':-.: lO.1 If the Customr is considering tr·nzfer of title to the Facility during the term of this Agrstmnt, Customer shall nm~ and address of all prospective tr·nsfurees), in advance shy such trsnsfer, Customer shall then have 3G days to provide SDGGE with sn sgretmnt execut~i by the pros~ective tr·nsferee agreeing to assume all of the obligations of the Agreement as the effective date of the transfer. 10.2 Xf Customer fails to provide SDOGE with the executed agreement with terms amiconditions acceptable to SDGGE, SDGGE may nego~iate with the prospective transferee with regard ~ransferee's assuming the obligations under this Agreement. ~ransferee fails to assume the obligations of this Agreement on or prior ~o the effective date of the transfer, Customer agrees to pay liquidated damages as provided in Section 13 within 30 days from ~he date the transfer is effective. 11. ~NDEMNXTY Customer will defend, indemnify, and save harmless, SDOGE, together with any and all of its agents and emplcyees,'from and against any 'and all claims, losses, liabilities, damages and expenses (including attorneys' fees) of any kind whatsoever for injuries ~o or death of any person (including, but not limited employees of SEXaGE and Customer) and for all loss, damage, or destruction o~ any proper~y (including, but not limited to, any proper~y of SDG&E o~ Customer) arising out of or in any way pertaining ~o the performance or lack of performance of the terms of this Agreement, whether negligent or othemise, by Customer, i~s agents, employees or subcontractors and whether or not the active or passive negligence of SDG&E caused or con~ributed said injury ~o, or death of any person, or loss, damage, or destruction of any property, except this lndemnit~ shall not ·pply if said injury or death, or loss, damage, or ~estruction, is caused by the sole negligence or willfull act of SDO&E, its agents or employees. 12. XNSURXNCE Customer shall maintain in effect during the life of this Agreement Comprehensive General Liability Xnsuzance, including contractual liability coverage for liability assumed by Customer in this Agreement, with limits of not less than Sl,000,000 each occurrence for bodily injury and property damage combined. Evidence of such insurance sh·ll be made available to SDG&E upon request. -7- ~ 13. ~ZQUZD~TED DAHAGES The extent and amount of actual damages which would be suffered by SD~&E as a result of Customer~s failure to perform in accordance with this Agreement are impractical or extremely difficult to determine or estimate. Customer will pay SDG&E the following amount as liquidated damages ~ (and not as a penalty) for each month (or any part during which Customer falls to perform in accordance with this Agreementt Amount each Month m $P/180 + Interest wheret p m total payment in dollars made by SDG&E to Customer pursuant to Section ~. Interest is the mum accrued by the value of $P/180 as follower I - ($P/180 X R/12 X Mo) where= Mo. E Months of operation elapsed from date of final payment to the month when Customer pays liquidated damages as provided herein. Mno. m Months non-performance, each month (or any part thereof) during which the Customer falls to perform. R = The average prime co~wnercial lending rate over the period Mo calculated as the average of the prime commercial lending rate announced by the Bank of America for each month during the periedMo. The Total Amount (Ta) iscalculated as follows: Ta= ($P/180 + $P/180 X R/12 X Mo) Mno This amount reflects a recapture of SDG&E's monthly inves~ment under the Agreement for each month Customer falls to perform in accordance with this Agreement. 14. GOVERNING LAW Interpretation of this Agreement and performance thereof will be determined by California law. No action may be brought under this Agreement unless brought in a court located in San Diego County. -8- 15. REMED~E$ SDG&E expressly retains all of its rights and remedies provided by law or equity in the case of breach, and neither any action b~/SDG&E nor any reservation by SDG&E in this Agreement of any specific legal or equitable remedy shall constitute a waiver of any other legal or equitable rights or remedies. 16. SURVIVA~ The obligations imposed on Customer and Customer~s employees by and pursu&nt to Artiole 11 shall survive termin&tion of this Agreement. 17. VALIDITy. The lnvalidity, in whole or part, of any provisions hereof shall not affect the validity of any other provisions hereof. This Agreement contains the complete and entire Agreement between ~he parties and supersedes any previous communications, representations, or agreements, whether verbal or written. with respect to t/re subject matter. No change, addition or modification of any of the terms or conditions shall be valid or binding on SDG&E unless in writing, signed by an authorized representative of SDG&E. 19. MODIFICATION OF AGREEMENT BY CALIFORN;A pUBLIC .U~I. LXTIES COMMTSSION While the form of this Agreement has been approved by the Public U~ilities Camnission of the State of California, this Agreement will at all times be subject to such changes or modifications as the CouFnission may, from time to time, direct An the exercise of its Jurisdiction. -9° IN WITNESS WHEREOF, the' parties have caused this Agreement to be executed by their duly authorized officers or representatives as of the day and year first above written. c~T~ o~ c,~,~ ~.~ . $x~ Vxs~Q. Gxs s ~s.~c co,. Gre~or~ R. Cox. Heur~ P. Morset Jr. Frin~ N~ "' br~'= N~ ' Mayor . . Mana~er~ Ha~or Aceount~ ~arketinS Title Title JanUar~ 25f 1989 .. Februar7 I07 1989 Da~e Da=e '