RESOLUTION NO. ________(N.C.S.)
A RESOLUTION AUTHORIZING THE EXECUTION OF AN AGREEMENT FOR ENERGY CONSERVATION SERVICES WITH ENGIE SERVICES U.S. INC. PURSUANT TO GOVERNMENT CODE SECTION 4217.10 ET SEQ., MAKING CERTAIN FINDINGS REQUIRED THEREFORE, AND AUTHORIZING RELATED ACTIONS WHEREAS, the City of Salinas, California ("City") is a charter city organized pursuant to the California Constitution and with authority derived directly from Article XI of the California Constitution; WHEREAS, the City finds it to be in the best interests of the City to implement projects to promote energy efficiency and renewable energy to achieve utility budget cost reductions; WHEREAS, Government Code sections 4217.10 through 4217.18 authorize the City's governing board (the “City Council") to enter into one or more energy service contracts with any person or entity if the City Council finds 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 of thermal, electrical, or other energy that would have been consumed by the City in the absence of those energy service contracts ("Savings"); WHEREAS, Government Code sections 4217.10 through 4217.18 authorize the City Council to enter into one or more facility financing contracts if the City Council finds that funds for the repayment thereof are projected to be available from the Savings, representing funds that otherwise would have been used for purchase of electrical, thermal, or other energy required by the City in the absence of the energy conservation services and facilities financed by proceeds available through the facility financing contracts; WHEREAS, Government Code sections 4217.10 through 4217.18 require that a public hearing be held, and public comment be taken, at a regularly scheduled meeting of the City Council, at which meeting the City Council may consider and adopt the findings described herein and award energy services contracts and facility financing contracts based thereon, and that notice thereof be must given at least two weeks prior to the meeting; WHEREAS, the City gave notice of its intent to conduct a public hearing and take public comment upon the subject matter of this Resolution two weeks prior to the regularly scheduled public meeting of the City Council at which the City Council has held a public hearing and taken public comment and has now considered this Resolution, all as required under Government Code sections 4217.10 through 4217.18; WHEREAS, the City Council and City staff reviewed the qualifications presented by ENGIE Services U.S. Inc., (“ENGIE”) to provide assessment and implement improvements for energy consumption and infrastructure in order to reduce energy expenses, and found ENGIE's qualifications to appear bona fide and adequate; WHEREAS, ENGIE assessed the feasibility of various potential energy conservation measures to reduce the City's energy consumption and expense and recommended specific energy conservation measures based thereon ("Analysis" as set forth in Exhibit A), upon which the City Council and City staff have relied; WHEREAS, ENGIE has offered to enter into an Energy Services Contract ("Energy Services Contract,") to provide design/build implementation of the recommended energy conservation measures for the price stated therein and a savings performance guarantee; WHEREAS, the Analysis demonstrates that the cost for energy conservation services provided under the Energy Services Contract is less than the anticipated marginal cost to the City of thermal, electrical, or other energy that would have been consumed by the City in the absence energy conservation services ("Savings"); WHEREAS, the City Council finds and determines that the project is categorically exempt from environmental review under the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines sections 15301 (Existing Structures) and 15303 (New Construction or Conversion of Small Structures) and statutorily exempt pursuant to Public Resources Code section 21080.35.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF SALINAS AS FOLLOWS:
Section 1. Recitals. All of the recitals herein contained are true and correct and are fully incorporated herein by this reference.
Section 2. ENGIE Agreements Findings. The City Council finds that the anticipated cost to the City for thermal or electrical energy or conservation services provided by the energy conservation facility under the Energy Services Contract will be less than the anticipated marginal cost to the City of thermal, electrical, or other energy that would have been consumed by the City in the absence of the Energy Services Contract and that it is in the best interest of the City to approve and enter into the City Agreements.
Section 3. ENGIE Agreements Approval. The forms of the Energy Services Contract by and between the City and ENGIE, in the forms on file with the City Clerk, are hereby approved, with such changes thereto, deletions therefrom and additions or modifications thereto as may be approved pursuant to Section 4 hereof.
Section 4. Execution and Delivery. Any one of the City Manager, the Finance Director, or any deputy thereof, or person duly appointed in writing to act in the stead of such officer (collectively, the “Responsible Officers”), is hereby authorized and directed for and in the name of and on behalf of the City to execute and deliver the Energy Services Contract in substantially the form presented to and considered at this meeting, with such changes therein, deletions therefrom and additions thereto as may be approved (i) by any Responsible Officer, in such person’s discretion, as being in the best interests of the City, and, (ii) as to form, by City Attorney; such approval to be conclusively evidenced by the execution and delivery thereof by the person executing the same on behalf of the City.
Section 5. Further Actions. The Responsible Officers are, and each of them acting alone is, hereby authorized and directed to take such actions and to execute such documents and certificates as may be necessary to effectuate the purposes of this resolution, including the execution and delivery of the Energy Services Contract and the Financing Agreements, and execution and delivery of any and all memorandums of agreement or understanding, assignments, certificates, requisitions, agreements, notices, consents, instruments of conveyance, warrants and other documents, which they, or any of them, deem necessary or advisable in order to consummate the transactions and requirements as described herein.
Section 6. Ratification. All actions heretofore taken by any officer of the City with respect to the execution and delivery of Energy Services Contract, and projects described therein are hereby approved, confirmed and ratified.
Section 7. Effective Date. This Resolution shall take effect upon approval.
PASSED AND APPROVED this 3rd day of December 2024, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
APPROVED:
_______________________________
Kimbley Craig, Mayor
ATTEST:
_____________________________
Patricia M. Barajas, City Clerk