4876-2460-2757v3/022053-0009
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
COMMERCE, CALIFORNIA, MAKING CERTAIN FINDINGS AND
APPROVING AN ENERGY SERVICES CONTRACT PURSUANT TO
GOVERNMENT CODE SECTION 4218.10, ET SEQ.,
The undersigned, being the City Council of the City of Commerce (the “City”), a body politic and corporate duly organized and existing as a California municipal corporation, does hereby consent to the taking of the following actions by the City as of the date hereof; and WHEREAS, it is the policy of the State of California and the intent of the State Legislature to promote all feasible means of energy conservation and all feasible uses of alternative energy supply sources, and the City desires to address long-standing capital improvement needs and reduce the City’s energy costs and energy consumption through the installation of energy efficiency measures at certain facilities; and WHEREAS, Government Code section 4217.10 et seq. (“Section 4217.10”) permits the City to enter into an energy services contract to design and construct energy conservation facilities, and a related financing or lease purchase agreement to pay for the cost thereof, if the City Council finds at a regularly scheduled public hearing noticed at least two weeks in advance that: the anticipated cost to the public agency 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 public agency of thermal, electrical, or other energy that would have been consumed by the public agency in the absence of those purchases; and that the difference, if any, between the fair market rental value for the real property subject to the facility found lease and the agreed upon rent, is anticipated to be offset by below market energy purchases or other benefits provided under the energy services contract; and WHEREAS, Alliance Building Solutions, Inc. (“ABS”) has offered to design and construct certain those certain improvements, energy conservation facilities, and City-wide energy conservation measures that are further described in the energy services contract in the form of the Installation Agreement attached hereto as Exhibit B and incorporated herein by reference the “Project”); and
WHEREAS, ABS has provided the City with analysis showing the benefits and cost savings of implementing the Project, and ABS’ analysis is attached hereto as Exhibit A and incorporated herein by this reference (“Energy Analysis”); and WHEREAS, the Energy Analysis includes data showing that the anticipated cost to the City for the electrical energy and conservation services provided by the Project will be less than the anticipated marginal cost to the City of electrical and other energy that would have been consumed by the City in the absence of such measures; and further, assuming market rate financing terms, that the difference, if any, between the fair rental value for the property to be financed and the agreed rent is anticipated to be offset by benefits provided under the energy services contract; and
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WHEREAS, the City proposes to enter into the Installation Agreement (an energy services contract) in the substantially the form attached hereto as Exhibit B, subject to nonmonetary changes approved by the Interim City Manager and City Attorney, which provides that ABS will design and construct the Project in return for compensation not to exceed $9,059.952, subject to the City Council’s future approval of a lease purchase agreement or financing contract to finance the Project on terms and conditions that are consistent with or at least as favorable as the assumptions made in the Energy Analysis; and
WHEREAS, in accordance with Government Code section 4217.10 et seq., not less than fourteen (14) days before the meeting where this Resolution was considered, the City posted notice of a public hearing at which the City Council would consider this Resolution.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Commerce as follows:
SECTION 1. Incorporation of Recitals. The City Council hereby finds that all of the facts in the Recitals are true and correct and are incorporated and adopted as findings of the City Council as fully set forth in this resolution.
SECTION 2. Best Interests Finding. The terms of the Energy Services Contract, in the form presented at the public hearing on this matter, are in the best interests of the City.
SECTION 3. Energy Savings Finding (Gov. Code, § 4217.12). In accordance with Section 4217.12, and based on data provided by the Energy Analysis, the City Council finds that the anticipated cost to the City for electrical energy and conservation services provided by the Project will be less than the anticipated marginal cost to the City of electrical and other energy that would have been consumed by the City in the absence of the Project; and further, assuming market rate financing terms, that the difference, between the fair rental value for property to be financed and the agreed rent is anticipated to be offset by benefits provided under the Energy Services Contract.
SECTION 4. Approval of Energy Services Contract. Subject to the revisions and financing contingency described herein, the City Council hereby approves and authorizes the Interim City Manager to execute the Energy Services Contract with ABS, in accordance with Section 4217.10, provided that the City Council’s authorization and approval shall only be binding and is conditioned upon the City obtaining and approving financing for the Project in the form of a lease purchase agreement or other financing contract approved by the City Council at a future date, on terms substantially consistent with or at least as favorable as the Energy Analysis attached hereto, and in the manner required by Section 4217.10.
SECTION 5. Revision and Financing Contingency. The Interim City Manager in consultation with the City Attorney is hereby authorized and directed, to the extent necessary, to negotiate any further non-monetary changes, insertions and omissions to the Energy Services Contract deemed reasonably necessary, and shall only execute each the Installation Agreement upon the City obtaining financing for the Project as described herein and approved by the City Council at a future date. The City Manager is further authorized and directed to execute and 4876-2460-2757v3/022053-0009
deliver any and all papers, instruments, opinions, certificates, affidavits and other documents and to do or cause to be done any and all other acts and things necessary or proper for carrying out this resolution.
SECTION 6. Certification. The City Clerk shall certify to the adoption of this Resolution and it shall become effective immediately.
IN WITNESS WHEREOF the undersigned has executed this Resolution as of the date set forth above and this Resolution was duly passed and adopted at a meeting of the City Council of the City held on ________________, 2024 by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
________________________________________
Mayor
ATTEST:
By:_________________________________
City Clerk