Agenda

Return

C. 89

To:	Board of Supervisors
From:	Julia R. Bueren, Public Works
Date:	February 5, 2013

Contra

Costa

County

Subject:

Approve PG&E On Bill Financing Loan Agreement for an Energy Project at the West County Detention Facility, Richmond

APPROVE	OTHER
RECOMMENDATION OF CNTY ADMINISTRATOR	RECOMMENDATION OF BOARD COMMITTEE

Action of Board On: 02/05/2013

APPROVED AS RECOMMENDED

OTHER

Clerks Notes:

VOTE OF SUPERVISORS

AYE:

John Gioia, District I Supervisor
Candace Andersen, District II Supervisor
Karen Mitchoff, District IV Supervisor
Federal D. Glover, District V Supervisor

ABSENT:

Mary N. Piepho, District III Supervisor

Contact:	Steve Silveira, (925) 313-7114
cc:	PW Administration PW Accounting PW Energy Management PW Clerical Auditor-Controller County Administrator's Office

I hereby certify that this is a true and correct copy of an action taken and entered on the minutes of the Board of Supervisors on the date shown.
ATTESTED: February 5, 2013
David Twa,

BY:	, Deputy

RECOMMENDATION(S):

APPROVE and AUTHORIZE the Public Works Director, or designee, to submit an application and EXECUTE a loan agreement with Pacific Gas and Electric Company, if approved, for an energy saving project to be repaid at zero interest.

FISCAL IMPACT:

No fiscal impact. PG&E will loan Contra Costa County the necessary construction funds to complete the energy project. The loan is at zero percent interest for a maximum of 10 years, billed on the County's monthly PG&E electricity bill. The monthly loan payments are structured such that they equal the monthly energy savings so that there is "bill neutrality."

BACKGROUND:

PG&E instituted an Energy Efficiency Loan Program to encourage local energy construction projects in order to distribute "Public Goods" funds for rebates/incentives. The maximum loan amount is $250,000 per meter at zero percent interest with repayment made monthly on the County's PG&E bill equal to the estimated savings up to 10 years (120 months). The goal is to be "bill neutral" and therefore have no budgetary impact. The proposed energy saving project is as follows:

PROJECT NAME	ESTIMATED LOAN	ANNUAL SAVINGS	MONTHLY LOAN PAYMENT/ TERM OF LOAN	ESTIMATED REBATE
West County Detention Facility Security Lights	$212,213	$22,221	$1,851.77/120 months	$9,327.50

The County will ultimately receive a rebate from the completion of the energy project and would then use that rebate for other projects. By completing the identified energy project, the County will reduce its energy consumption as part of the Municipal Climate Action Plan and pay for the project with future dollars at no interest.

After the loan application is submitted, PG&E will send field staff to perform a pre-construction inspection to determine what the annual energy savings would be if the project were to be constructed. The County would then bid out the project, award the contract, manage the construction project, and pay the contractor. Upon completion, PG&E will perform a post-construction inspection to ensure the project is complete and is eligible for the loan program. The County will then invoice PG&E for the construction cost and enter into the loan agreement (Exhibit A). PG&E will reimburse the County for the construction cost and issue a rebate for the energy project

CONSEQUENCE OF NEGATIVE ACTION:

If the PG&E On-Bill Financing zero percent loan application is denied, the County will not proceed with the energy project due to lack of funds.

CHILDREN'S IMPACT STATEMENT:

Not applicable.