HomeMy WebLinkAboutCC RESO 2017-129RESOLUTION NO. 2017 — 129
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY
AUTHORIZING THE MAYOR TO EXECUTE AN ENERGY SERVICES
AGREEMENT, PHASE II, WITH AMERESCO, INC., PURSUANT TO
CALIFORNIA GOVERNMENT CODE SECTION 4217.10, ET SEQ.,
TO DEVELOP AND CONDUCT ENERGY EFFICIENCY AND
RENEWABLE ENERGY UPGRADES AT CITY FACILITIES, AS SET
FORTH IN SECTION "D" OF THE ENERGY AUDIT REPORT
WHEREAS, on June 3, 2014, in accordance with National City's Energy
Roadmap and Climate Action Plan, the City Council directed staff to "solicit proposals pursuant
to California Government Code 4217.10, et seq., to design, install, and finance sustainability
improvements within municipal facilities"; and
WHEREAS, in July 2014, the City's Engineering and Public Works Department
noticed a Request for Statement of Qualifications (SOQ) for an energy services contract to
make sustainability improvements to City facilities under a guaranteed energy savings contract,
and proposals were solicited to provide energy -related capital improvement services through
performance -based contracting; and
WHEREAS, these services would include design, installation, maintenance, and
monitoring of energy and water saving upgrades at City facilities with a guarantee that monetary
savings will cover the cost of the upgrades; and
WHEREAS, the two responses received were evaluated by a five -member
selection committee consisting of City staff, councilmembers, and outside consultants that gave
Ameresco Inc., the highest overall rating; and
WHEREAS, following execution of the Energy Audit Agreement (Phase 1),
Ameresco conducted an Energy Audit of City facilities, developed a project scope of energy and
water saving measures, forecasted savings, presented a financing solution, and offered a
guarantee that cost savings will cover project costs.
WHEREAS, taking into consideration the best financial performance and
priorities for the City, the two most cost effective options were presented to the City Council on
September 20, 2016, where City Council gave direction to proceed with the staff
recommendation of the full program scope of work (Option 2 per PowerPoint presentation
presented September 20, 2016); and
WHEREAS, through negotiations and various revisions, while maintaining the
same scope and intent, the total implementation cost was decreased from $6,608,598 to
$5,403,308.
WHEREAS, California Government Code Section 4217.10, et seq., facilitates
public agencies' energy conservation efforts by authorizing them to enter into an Energy
Services Agreement ("ESA") to develop and conduct energy efficiency and renewable energy
projects at public facilities and make certain findings that the contract is in the public's best
interest and make specific cost-effectiveness findings:
Resolution No. 2017 — 129
Page Two
1. In order to enter into an ESA, Section 4217.12 requires the Council find "that the
anticipated cost to the City for thermal or electrical energy or conservation services
provided by the energy conservation facility under the contract will be less than the
anticipated marginal cost to the City in the absence of those purchases,".
2. In order to enter into a financing contract, Section 4217.13 requires the Council find "that
funds for the repayment of the financing or the cost of design, construction, and
operation of the energy conservation facility, or both, as required by the contract, are
projected to be available from revenues resulting from sales of electricity or thermal
energy from the facility or from funding that otherwise would have been used for
purchase of electrical, thermal, or other energy required by the public agency in the
absence of the energy conservation facility, or both."
WHEREAS, City staff and consultants have reviewed these cost effectiveness
criteria and determined that they are met:
1. The anticipated cost of the project after rebates and including Maintenance and
Verification ("M&V") per the contract amount of $5,379,285, which would be less than the
anticipated energy and water savings from the first 25 years.
2. The funds needed to repay the financing after rebates and operational and repair
in the amount of $3,927,387 would be less than the anticipated energy and water savings in the
amount of $4,807,486 over the 20 year financing term.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of
National City hereby authorizes the Mayor to execute an Energy Services Agreement, Phase II,
with Ameresco, Inc., pursuant to California Government Code Section 4217.10, et seq., to
develop and conduct energy efficiency and renewable energy upgrades at City facilities, as set
forth in Section "D" of the Energy Audit Report.
PASSED and ADOPTED this 20th day of June
l_,
Ron 101orrison, Mayor
ATTEST:
Michael R. Dalla, Ci ' Clerk
APPROVED AS TO FORM:
Passed and adopted by the Council of the City of National City, California, on June 20,
2017 by the following vote, to -wit:
Ayes: Councilmembers Cano, Mendivil, Morrison, Rios, Sotelo-Solis.
Nays: None.
Absent: None.
Abstain: None.
AUTHENTICATED BY: RON MORRISON
Mayor of the City of National City, California
N i
City lerk of the City National City, California
By:
Deputy
I HEREBY CERTIFY that the above and foregoing is a full, true and correct copy of
RESOLUTION NO. 2017-129 of the City of National City, California, passed and
adopted by the Council of said City on June 20, 2017.
City Clerk of the City of National City, California
By:
Deputy