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CONSIDERATION OF APPROVING AN ENERGY SERVICE CONTRACT
RESOLUTION NO. 2017-227 OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING AN ENERGY SERVICE CONTRACT WITH JOHNSON CONTROLS, INC.
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RECOMMENDED ACTION
Recommended Action
Council adopt the resolution.
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SUMMARY
Internal Revenue Code Section 54C provides for issuance by local governments of Clean Renewable Energy Bonds (or "CREBs") to finance energy efficiency projects at subsidized interest rates. On July 10, 2017, the City entered into a project development agreement with JCI for the Energy Conservation Performance Contract in order to develop the necessary calculations for a CREBS application submittal. On August 3, 2017, the City received approval letters from the IRS for thirteen separate CREBS eligible projects totaling $17,774,627. The contract attached for your consideration would authorize JCI to design and install a total of 2.437 MegaWatts of solar panels at 12 City facilities and 120 kW of battery storage at 2 City facilities at a not to exceed cost of $13,454,759
ENVIRONMENTAL REVIEW
Environmental Notice
Environmental Notice
The Project qualifies for a Class 3 Categorical Exemption pursuant to Section 15303 (New Construction or Conversion of Small Structures) of the California Environmental Quality Act State Guidelines.
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Environmental Determination
The Director of Development Services has reviewed the proposed project for compliance with the California Environmental Quality Act (CEQA) and has determined that the project qualifies for a Class 3 Categorical Exemption pursuant to Section 15303 (New Construction or Conversion of Small Structures) of the State CEQA Guidelines. Thus, no further environmental review is required.
BOARD/COMMISSION RECOMMENDATION
N/A
DISCUSSION
The CREBs program provides a mechanism for the City to obtain a federally subsidized interest rate for debt issued to fund City projects that reduce energy use and the associated greenhouse...
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