RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COMMERCE, CALIFORNIA, MAKING CERTAIN FINDINGS UNDER GOVERNMENT CODE SECTION 4218.10, ET SEQ., CONCERNING AN ENERGY SERVICES CONTRACT AND LEASE PURCHASE AGREEMENT FOR DESIGN AND CONSTRUCTION OF ENERGCY CONSERVATION FACILITIES 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 4217.12 (“Section 4217.12”) permits the City to enter directly into an energy services contract to design and construct energy conservation facilities, and 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 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 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, that the difference, if any, between the fair rental value for the property subject to the Lease Financing Agreement approved by Resolution contemporaneously herewith and the agreed rent, is anticipated to be offset by benefits provided under the energy services contract; and WHEREAS, the City proposes to enter into the Installation Agreement in the substantially the form attached hereto as Exhibit B, subject to non-monetary changes approved by the City Manager and City Attorney (“Energy Services Contract”), which provides that ABS will design and construct the Project in return for compensation not to exceed $_____________, provided that the City’s approval and signing of the Energy Services Contract is conditioned upon the City obtaining financing for the Project; 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 and Lease Purchase Agreement, in the forms 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 Energy Improvements 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 Energy Improvements; and further, that the difference, between the fair rental value for property subject to the Lease Financing Agreement 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 in Section 5 below, the City Council hereby authorizes the City Manager to enter into the Energy Services Contract with ABS, in accordance with Section 4217.12, which shall only be binding upon execution by the City Manager; provided that such approval is conditioned upon the City obtaining financing for the Project in the form of the Lease Purchase Agreement or as otherwise approved by the City Council.
SECTION 5. Revision and Financing Contingency. The 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 agreement upon the City obtaining financing for the Project in the form of the Lease Purchase Agreement, or as such alternative financing is approved by the City Council at a future date. The City Manager is further authorized and directed to execute and 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 and said agreements.
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 December 12, 2023 by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
________________________________________
Mayor
ATTEST:
By:
City Clerk
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