HomeMy WebLinkAboutCC RESO 15,826RESOLUTION NO. 15,826
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY
AUTHORIZING THE CITY MANAGER TO EXECUTE A THERMAL ENERGY
STORAGE AGREEMENT WITH SAN DIEGO GAS & ELECTRIC
COMPANY FOR THE NEW CITY ADMINISTRATION BUILDING
BE IT RESOLVED by the City Council of the City of
National City that the City Manager is hereby authorized to execute
a Thermal Energy Storage Agreement for the new City Administration
Building between the City of National City and the San Diego Gas
& Electric Company. A copy of said agreement is attached hereto
as Exhibit "A."
PASSED and ADOPTED this 20th day of December, 1988.
George H. Waters, Mayor
ATTEST:
Lori Anne Peoples, City Clerk
APPROVED AS TO FORM:
George H. Eiser, III, City Attorney
SDGii
San Diego Gas & Electric
PO. BOX 1831 • SAN DIEGO, CA 92112 • 619/696.2000
FILE NO.
THERMAL ENERGY STORAGE
AGREEMENT
THIS AGREEMENT is made and entered by and between
SAN DIEGO GAS & ELECTRIC COMPANY ("SDG&E"), a California
corporation, and City of National City„ hereinafter referred
to as "Customer".
WHEREAS:
1. Customer plans to construct a new 101,500 square
foot civic center in National City. ("Facility").
2. Customer desires to utilize thermal energy storage
in said Facility, as opposed to a conventional
air-conditioning system, provided that SDG&E shares in the
additional construction and equipment costs associated with a
thermal storage cooling system.
3. SDG&E is desirous of fostering the use by private
enterprise of new technologies which will contribute to the
reduction of peak period electrical demand and to the increase
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
substantial electrical demand and consumption from peak to
off-peak periods.
AP 1513 Approval #82-0793 (B)
SDG&E Form 143-1459B
Rev. 6/15/88
NOW, THEREFORE, in consideration of the mutual covenants
contained herein and other good and valuable consideration,
the adequacy of which is hereby acknowledged, the parties
agree as follows:
1. TERM
This Agreement shall commence on the date it is
executed by SDG&E, and shall continue in force for fifteen
(15) years from the date final payment, as provided in
Section 5 is made.
2. SCOPE
2.1 Customer will proceed to construct and complete
said Facility, including the thermal storage cooling system,
on or before September 1991.
2.2 Customer will cause to be included in the
construction contract provisions for the acquisition and
installation of a thermal 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 1300 ton -hours.
3. SYSTEM SELECTION AND OWNERSHIP
Selection of the thermal 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 Customer's eligibility for this
program; 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 shall indemnify SDG&E from any
liability relating to the system's reliability, efficiency
and/or performance.
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4. CALCULATION OF INDUCEMENT PAYMENT
4.1 A one-time financial contribution toward the added
costs of installing a cool storage system (ice, chilled water,
eutectic salt or similar thermal energy storage system) in lieu of, or
to replace, a conventional air-conditioning, refrigeration, or process
cooling system, accordance with the following:
a. For new building installations, the cooling load
used below shall be the design cooling load in tons used to size 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
in Tons
201-1200 Tons >1200 Tons
Funding Levels not 250 $/ton
to be Exceeded:
225 $/ton 200 $/ton
b. For retrofit installations, the cooling load used
below shall be the electric load displaced in kilowatts (kW) by
thermal storage components as determined from instrumentation,
equipment specifications, log books or bills.
Total Cooling Load 0-200 kW
in kW
201-1200 kW >1200 kW
Funding Levels not to be 250 $/kW
exceeded: AL-TOU Customers
225 $/kW 200 $/kW
AD Customers
250 $/kW 250 $/kW
4.2 The amount of the calculated inducement payment made to
a Customer for the single cool storage application shall be subject to
the following limitations:
a. For all installations, SDG&E shall be the sole
judge of Tons or kW of cooling load used to calculate inducement
amounts.
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b. The inducement payment amounts used above
apply to thermal storage systems with a minimum of 6.5
ton -hours of storage for each ton of conventional design
cooling load. Systems with less storage may be accepted; but,
the inducement payment amount will be prorated.
c. SDG&E shall have the right to reject
Customer participation in the program, if, in the judgement of
SDG&E, a proposed installation is improperly designed,
installed costs of the storage system are deemed excessive, an
alternate type of system would be more suitable, or an equally
suitable type of system would be less expensive.
d. Inducement payments shall be limited to
funding levels authorized from year to year by the CPUC.
5. PAYMENT
5.1 SDG&E shall pay to Customer $50,000, computed
at the rate of $250 per kW for 200 kW of cooling load.
Payments shall be made in accordance with the following
schedule:
a. Forty percent (40%) of the total payment
due under Section 5.1 upon delivery to the job site of the
thermal storage units and receipt by Customer of a billing for
the cost of said units.
b. Balance of the total payment due under
Section 5.1 upon completion of the thermal storage cooling
system and all associated components. Verification by SDG&E
to its satisfaction that the thermal storage cooling system
has been installed as designed and is operable is a condition
precedent to this final payment.
5.2 Requests for each of said payments, together
with supporting documentation, shall be submitted by Customer
to SDG&E. Payment shall be made by SDG&E within 30 days of
approval by SDG&E of the payment request.
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6. MAINTENANCE
Customer agrees to maintain the system at a level which
meets or exceeds manufacturer's specifications. Customer further
agrees to document its maintenance of the system and to provide
that documentation to SDG&E upon request.
7. SYSTEM OPERATION
7.1 SDG&E's financial contribution to Customer,
pursuant to Section 4, is made largely in consideration that the
installation and operation of the thermal storage cooling system
will substantially reduce Customer's electrical demand and
consumption during periods of peak demand on SDG&E's electrical
generation, transmission, distribution system, and will transfer
energy requirement from peak hours to off-peak hours.
7.2 Accordingly, Customer agrees to operate the
refrigeration compressors of the thermal storage system during
times other than SDG&E's "peak demand periods" as defined in
paragraph 7.3 for a period of 15 years from the date final payment
is made under paragraph 5.1b using only electrical power purchased
from SDG&E.
7.3 SDG&E's current "peak demand periods" are as
follows:
May 1 through September 30 . . .11 a.m. - 6 p.m.
. .Weekdays*
October 1 through April 30 . . . 5 p.m. - 8 p.m. . .Weekdays*
*Except holidays
All time periods listed are applicable to local time.
7.4 SDG&E's "peak demand periods" are subject to change
from time to time. SDG&E will give notice to Customer of such
changes, and Customer agrees to observe such revised "peak demand
periods" pursuant to provisions of Section 7.2.
7.5 The restrictions imposed by Sections 7.2 and
liquidated damages set forth in Section 13 shall be waived for
circumstances, occurrences or events not created, controlled or
controllable by the Customer. No waiver of restrictions or
penalties will be granted for times when SDG&E or the California
Utility Power System's Coordinator has declared a Stage 1 alert,
or such other times when a demand reduction is required for the
operating convenience of SDG&E.
7.6 TES Metering and Rate Schedule
a. Customer shall provide at no expense to
SDG&E a metering point for refrigeration compressors,
condenser pumps and condenser fans.
1. New installations - Adjacent to new
house meter.
2. Retrofit installations - Adjacent to
existing house meter.
b. Customer shall accept service at the above
metering point for thermal energy storage equipment at the
CPUC approved schedule for thermal energy storage for the term
of this Agreement.
c. Schedule AL-TOU is the current schedule
for TES.
8. INSPECTION
SDG&E reserves the right to inspect the Facility at
reasonable times for the purpose of monitoring Customer's
compl_ance with its performance obligations under this
Agreement. This provision shall not impose upon SDG&E any
obligation to perform any inspection.
9. COMPLIANCE WITH LAWS
Customer and any subcontractor it may retain shall
be deemed to be familiar with, and at all times shall comply
with and observe all applicable federal, state and local law,
ordinances, rules, regulations, executive orders, all
applicable safety orders and all orders or decrees of
administrative agencies, courts or other legally constituted
authorities having jurisdiction or authority over Customer,
SDG&E, or the Facility which may now or hereafter exist.
10. BUILDING TRANSFER
10.1 If the Customer is considering transfer of title
to the Facility during the term of this Agreement, Customer shall
provide SDG&E with a minimum of 60 days written notice (including
name and address of all prospective transferees), in advance of any
such transfer. Customer shall then have 30 days to provide SDG&E
with an agreement executed by the prospective transferee agreeing
to assume all of the obligations of the Agreement as of the
effective date of the transfer.
10.2 If Customer fails to provide SDG&E with the
executed agreement with terms and conditions acceptable to SDG&E,
SDG&E may negotiate with the prospective transferee with regard to
transferee's assuming the obligations under this Agreement. If
transferee fails to assume the obligations of this Agreement on or
prior to the effective date of the transfer, Customer agrees to pay
liquidated damages as provided in Section 13 within 30 days from
the date the transfer is effective.
11. INDEMNITY
Customer will defend, indemnify, and save harmless,
SDG&E, together with any and all of its agents and employees, from
and against any and all claims, losses, liabilities, damages and
expenses (including attorneys' fees) of any kind whatsoever for
injuries to or death of any person (including, but not limited to,
employees of SDG&E and Customer) and for all loss, damage or
destruction of any property (including, but not limited to, any
property of SDG&E or Customer) arising out of or in any way
pertaining to the negligent performance or lack of performance of
the terms of this Agreement, or otherwise, by Customer, its agents,
employees or subcontractors.
12. INSURANCE
Customer shall maintain in effect during the life of this
Agreement Comprehensive General Liability Insurance, including
contractual liability coverage for liability assumed by customer
in this Agreement, with limits of not less than $1,000,000 each
occurrence for bodily injury and property damage combined.
Evidence of such insurance shall be made available to SDG&E upon
request. Customer has the right to self -insure this exposure.
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13. LIQUIDATED DAMAGES
The extent and amount of actual damages which would be
suffered by SDG&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 with interest (and not as a
penalty) for each month (or any part thereof) during which
Customer fails to perform in accordance with this Agreement:
Amount each Month = $P/180 + Interest
where: P = total payment in dollars made by SDG&E to Customer
pursuant to Section 5.
Interest is the sum accrued by the value of $P/180 as follows:
where:
I = ($P/180 X R/12 X Mo)
Mo. = Months of operation elapsed from date of
final payment to the month when Customer pays
liquidated damages as provided herein.
Mno. = Months non-performance, each month (or any
part thereof) during which the Customer fails
to perform.
R = The average prime commercial 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
period Mo.
The Total Amount (Ta) is calculated as follows:
Ta = ($P/180 + $P/180 X R/12 X Mo) Mno
This amount reflects a recapture of SDG&E's monthly
investment under the Agreement for each month Customer fails 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.
15. REMEDIES
SDG&E expressly retains all of its rights and
remedies provided by law or equity in the case of breach, and
neither any action by 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. SURVIVAL
The obligations imposed on Customer and Customer's
employees by and pursuant to Article 11 shall survive
termination of this Agreement.
17. VALIDITY
The invalidity, in whole or part, of any provisions
hereof shall not affect the validity of any other provisions
hereof.
18. COMPLETE AGREEMENT
This Agreement contains the complete and entire
Agreement between the parties and supersedes any previous
communications, representations, or agreements, whether verbal
or written, with respect to the 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
CALIFORNIA PUBLIC UTILITIES COMMISSION
While the form of this Agreement has been approved
by the Public Utilities Commission of the State of California,
this Agreement will at all times be subject to such changes or
modifications as the Commission may, from time to time, direct
in the exercise of its jurisdiction.
20. HEIRS, SUCCESSORS AND ASSIGNS
This agreement shall be binding upon the heirs, suc-
cessors in interest, and assigns of the parties hereto.
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.
CITY OF NATIONAL CITY
SAN DIEGO GAS & ELECTRIC CO.
Company / Company
Signature Signature
Tom G. McCabe Q (.2,,, -vAmcD
Print Name
City Manager
Title
Date
iz/r
Z`/?
APPROVED AS FORM
George H. Eiser, III
ity Attorney
Print Name
Title
Date
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