Laserfiche WebLink
THE CITY OF 1 g <br /> { { ` CITY COUNCIL AGENDA REPORT <br /> pL£ASANTONo <br /> January 15, 2013 <br /> Operations Services <br /> TITLE: APPROVAL OF TWO RESOLUTIONS AUTHORIZING EXECUTION OF A <br /> TWO LOAN AGREEMENTS WITH THE CALIFORNIA ENERGY <br /> COMMISSION AND PACIFIC GAS AND ELECTRIC FOR THE PURPOSE OF <br /> IMPLEMENTING A STREET AND PARK LIGHT CONVERSION PROJECT <br /> SUMMARY <br /> Last year the City contracted with Energy Service Company (ESCo) to complete an <br /> energy audit of City facilities. ESCo has provided staff with the audit results which <br /> indicate that significant cost and energy savings could be realized by converting City' <br /> owned street lights, and other outside lighting systems, such as those used in city parks <br /> for pathway lighting, from high pressure sodium to light-emitting diodes (LED). In view of <br /> this recommendation, staff has pursued funding sources that could cover all or a portion <br /> of the estimated $3.2 million required to complete the lighting conversion project. As an <br /> outcome of this research, staff has identified two favorable loan programs. The first, <br /> available from the California Energy Commission (CEC) as part of its Energy <br /> Conservation Assistance Act Loan Program, provides energy efficiency financing through <br /> a 1% low interest loan payable over 15 years. The maximum loan amount available to <br /> participants using the CEC program is $3 million. The second, which is available through <br /> Pacific Gas and Electric (PG&E) as part of its On-Bill Financing program (OBF), would <br /> provide a 0% interest loan in the amount of $250,000. As a result of the favorable terms <br /> of these two programs, and the interest in energy upgrades, staff is recommending <br /> authorization to apply for and execute the related loan documents. Staff estimates that <br /> approximately 7,300 street lights and numerous park lights will be converted from these <br /> two loans. <br /> RECOMMENDATION <br /> 1 . Adopt the attached resolution (Attachment 1) authorizing application for and <br /> acceptance of a California Energy Commission's Energy Conservation Assistance <br /> Loan Agreement for up to $3 million. <br /> 2. Adopt the attached resolution (Attachment 2) authorizing application for and <br /> execution of a PG&E On-Bill Financing Loan Agreement for an amount of <br /> $250,000. <br /> FINANCIAL STATEMENT <br /> Staff anticipates that loan payments will be made through ongoing cost savings related <br /> from the lighting conversion project and as such, no additional funding is anticipated. <br />