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HomeMy WebLinkAboutReso 117-12 Energy Audit Agmt Chevron RESOLUTION NO. 117 - 12 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DUBLIN APPROVING AN ENERGY SERVICE CONTRACT AND AN ASSOCIATED FINANCING CONTRACT WITH CHEVRON ENERGY SOLUTIONS COMPANY, FOR THE IMPLEMENTATION AND FUNDING OF CERTAIN ENERGY RELATED IMPROVEMENTS TO CITY OF DUBLIN FACILITIES WHEREAS, the City of Dublin approved an Energy Audit Agreement with Chevron Energy Solutions Company in May of 2011; and WHEREAS, a comprehensive energy audit was conducted on City facilities to determine the feasibility of various energy efficiency improvements ("the Projects"); and WHEREAS, State law allows the City to enter into an Energy Service Contract if the anticipated cost for alternative energy equipment and associated conservation measures will be less than that of non-renewable energy that would have been consumed otherwise; and WHEREAS, the cost to the City of the Energy Service Contract by and between the City and Chevron Energy Solutions for the implementation of certain energy measures for electrical energy generation or conservation services will be less than the anticipated marginal cost of electrical energy that would have been consumed by the City absent the implementation of the improvements under the Energy Service Contract; and WHEREAS, the construction of the projects will depend on the City's ability to finance the costs; and WHEREAS, the City's debt service commitment will be paid from the anticipated savings generated by the more efficient systems that will be built under this program; and WHEREAS, Chevron Energy Solutions will provide the City with an option to guarantee that the savings generated by the reduction in energy usage as a result of these projects will be sufficient to pay the City's' debt service commitment. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Dublin hereby finds as follows: 1. The anticipated cost of the electrical energy produced by the Projects combined with the savings resulting from the energy conservation that will result from the Projects will be less than the anticipated marginal cost to the City of Dublin of procuring electrical energy that would otherwise by consumed in the absence of the Projects. 2. It is in the best interests of the City of Dublin to enter into a facilities financing contract substantially in the form presented to the City Council. Page 1 of 2 3. Funds for the repayment of the financing contract are projected to be available from revenues resulting from funding that otherwise would have been used for the purchase of electrical energy in the absence of the Projects. BE IT FURTHER RESOLVED that the City Council of the City of Dublin hereby approves an Energy Service Contract ("Agreement') with Chevron Energy Solutions Company, for the implementation and funding of certain energy related improvements to City facilities as authorized by California Government Code Sections 4217.10 through 4217.18. BE IT FURTHER RESOLVED that the City Council of the City of Dublin hereby approves and accepts the Lease terms presented by US Bank and authorizes Staff to negotiate the final terms and amount to be financed, for the implementation and funding of the energy related improvements. BE IT FURTHER RESOLVED that the City Manager is authorized to execute the Agreement with Chevron Energy Solutions Company and an associated financing contract substantially in the form presented, with the technical, clarifying and conforming changes as shall be approved by the City Attorney and/or the City Manager and to execute such other documents and perform such other actions as are necessary to perform the City's obligations as set forth in the Agreement. PASSED, APPROVED AND ADOPTED this 19th day of June, 2012, by the following vote: AYES: Councilmembers Biddle, Hart, Hildenbrand, Swalwell, and Mayor Sbranti NOES: None ABSENT: None ABSTAIN: None oo Mayor ATT Z._ pc/4' City Clerk Reso No. 117-12, Adopted 6-19-12, Item 6.3 Page 2 of 2