HomeMy WebLinkAboutItem 5e. Approve On-Bill Financing approach for Lighting Retrofits Item 5e
Department: Administration
Cost Center: 1005
For Agenda of: 7/6/2012
Placement: Consent
Estimated Time: N/A
FROM: Greg Hermann, Deputy City Manager
Prepared By: Chris Read, Sustainability Manager; Greg Cruce Facilities Maintenance
Supervisor; Naomi Albert CivicSpark Fellow
SUBJECT: APPROVE ON-BILL FINANCING APPROACH FOR LIGHTING
RETROFITS
RECOMMENDATION
1. Authorize the City Manager to execute PG&E On-Bill Financing Agreements; and
2. Adopt a Resolution entitled, “A Resolution of the City Council of the City of San Luis
Obispo, California, making findings on energy savings and determining other matters
in connection with Energy Efficiency Retrofits”; and
3. Delegate signatory authority to the City Manager to execute a contract to the
satisfaction of the City Attorney with Electricraft Inc. to provide the lighting retrofit work.
DISCUSSION
Background
In August 2020, City Council adopted the Climate Action Plan for Community Recovery
(CAP), which establishes a community-wide goal of carbon-neutrality by 2035. A central
pillar of the CAP is a commitment to achieve carbon neutral city operations by 2030.
Facility energy use is one of the largest sources of greenhouse gas emissions from City
operations, and energy efficiency retrofits support Council’s goals by reducing facility
electricity use and corresponding greenhouse gas emissions.
Climate Action is again set as a Major City Goal for the 2021-23 Financial Plan by City
Council, affirming its importance as a continued priority. Historically, the City has been
supportive of energy efficiency. The City’s 2018 Fiscal Health Response Plan (FHRP)
committed to “new ways of doing business,” including a commitment to energy efficiency
and investments in sustainable infrastructure with short-term paybacks on investment.
The FHRP identified $293,000 in savings as the result of energy efficiency and other
resource consumption reduction. The City continues to pursue new ways to “Lead by
Example” and reduce operational costs and greenhouse gas emissions.
Page 47 of 847
Item 5e
Proposed Project with Central Coast LEAP
In 2020, the City completed lighting retrofits at both Palm Street parking garages and in
June of 2021, completed a lighting retrofit at the final downtown garage on Marsh Street.
The three projects were originated through a relationship with SLO EnergyWatch
Partnership in collaboration with PG&E. SLO EnergyWatch was funded through California
Public Utility Commission (CPUC) energy efficiency funds and provided resources to local
governments to achieve energy efficiency projects. As the statewide local implementer of
CPUC program landscape has changed, SLO EnergyWatch has been disbanded and the
services relevant to this report are now administered by Central Coast Leap (CCLEAP).
The City of San Luis Obispo enrolled in CCLEAP to access no-cost project management
services for energy efficiency projects. CCLEAP conducted a review of several facilities
and an onsite energy audit of City Hall and Fire Station #1 in December 2020. Based on
the audit, CCLEAP proposed an interior lighting retrofit project for both facilities. This
multi-benefit project would realize cost and energy savings, and decrease maintenance
costs, while helping achieve the City’s climate action goals by reducing greenhouse gas
emissions by nearly 60 metric tons annually.
CCLEAP’s project proposal is included in Attachment C. Under the proposal, the
contractor would replace a total of 477 existing fixtures with LED fixtures (260 at City Hall
and 217 at Fire Station #1). All existing controls would remain, and additional controls
would only be added where specifically required by California Title 24.
Like the successfully completed garage retrofit projects, the projects presented for
approval in this report would comply with all Pacific Gas and Electric (PG&E) On -Bill
Financing requirements and would be funded through Pacific Gas and Electric On-Bill
Financing (OBF). CCLEAP has submitted an OBF application to PG&E for the project on
behalf of the City and the OBF application has subsequently been approved and is
provided for execution as Attachment A. OBF is a financing mechanism provided by
PG&E that allows the City to receive a 0% loan for energy e fficiency projects. The City
amortizes the debt using monthly bill savings achieved through the project. During the
payback period, the City’s bill would appear unchanged. Upon full payback, the City’s
energy bill will reflect the savings.
Government Code 4217.10-4217.18
Like the three garage lighting projects mentioned above, this project is exempt from
certain City procurement protocols due to its consistency with California Government
Code Section 4217.10, et seq, which authorizes public agencies to solicit proposals from
qualified vendors and to award a contract on the basis of the experience of the firm, the
type of technology employed by the firm, the cost to the local agency, and any other
relevant considerations, provided that the projects deliver net cost savings to the public
agency and the contract terms are in the best interest of the City. Since the project has a
simple payback period of less than ten years (see Fiscal Impact, below), the project saves
energy, and therefore under Government Code 4217, may pursue a streamlined
procurement process.
Page 48 of 847
Item 5e
To obtain a cost estimate to apply for OBF, staff received quotes from two vendors, Lee
Wilson Electric and Electricraft. These quotes were used to file the OBF application with
PG&E. Both vendors were then invited to a site walk -through to gather more detailed
information to revise their quotes for accuracy. Following the site walk-through,
Electricraft Inc., was selected to implement the project.
Previous Council or Advisory Body Action
2021-23 Financial Plan. In June of 2021, Council adopted the 2021 -23 Financial
Plan, which includes the project proposed in this report.
Climate Action Plan for Community Recovery. In August of 2020, Council adopted
the Climate Action Plan for Community Recovery, which include a goal of carbon
neutral municipal operations by 2030. The lighting retrofits as proposed in this
report are consistent with that goal.
Lighting Retrofit. In August 2018, Council approved an on-bill financing agreement
with PG&E and a resolution making findings required by Government Code
Section 4217 to complete lighting retrofits at the City’s parking garages. The
lighting retrofits have been completed.
Policy Context
The proposed project is consistent with the 2021-23 Financial Plan and the Climate Action
Plan for Community Recovery. Extensive engagement was completed as part of the
2021-23 Financial Plan and this item was included as a result of that process.
Public Engagement
The project appears in the 2021-23 Financial Plan which was adopted on June 1, 2021
via an extensive public engagement effort.
CONCURRENCE
This report was completed in collaboration between Administration and Public Works.
ENVIRONMENTAL REVIEW
The proposed lighting retrofit project is categorically exempt from environmental review
per CEQA Guidelines section 15301, Existing Facilities, and would not involve an
expansion of use of existing City facilities or result in any significant effects on t he
environment. Further, the project would result in a beneficial effect on the environment by
reducing greenhouse gas emissions by 60 metric tons annually.
FISCAL IMPACT
Budgeted: Yes Budget Year: 2021-22
Funding Identified: Yes
Page 49 of 847
Item 5e
Fiscal Analysis:
Funding
Sources
Total Budget
Available
Current
Funding
Request
Remaining
Balance
Annual
Ongoing
Cost
General Fund $15,000 $7,590.07 $7,409.93 $
State
Federal
Fees
Other:PG&E
OBF
$188,813.00
Total $ $196,403.07 $4,594.93 $
Should Council direct the City Manager to finalize and execute the contract with
Electricraft Inc. using OBF, payback of the remaining loan amount will be realized in the
facility’s utility bill based on the savings calculated. The loan amount would be paid
directly from PG&E to Electricraft Inc. for the work completed. Once the loan amount is
paid off via the utility bill, savings will be realized from then forward.
$15,000 has been allocated for the project as part of the FY 2021-22 Budget and would
be used for an initial project buydown total of $7,590.07. The buy down is necessary due
to OBF terms that require every individual project in an application package have a simple
payback period of ten years or less. City Hall’s payback p eriod is slightly longer and thus
requires the buy down. However, the Fire Station 1 payback period is shorter and even
with the City Hall buy down, the net lifetime savings assessment for the projects as a
single portfolio indicates a simple payback period of 9.94 years. As currently estimated,
once the payback period of 9.9 years has concluded, the project would save the General
Fund an estimated $19,637 per year in electricity costs alone.
The following tables explain the discrepancies in the approved loan amounts (Attachment
A) and the actual project costs (Attachment C). Due to time constraints, the loan package
was submitted prior to final project cost being known. The City and CCLEAP submitted a
conservative higher project cost to ensure that sufficient funds were available for the
project. Electricraft’s bid came in lower than the amount requested and therefore the
required “Buy Down” amount is only $7,590.07 and the PG&E loan amount is
$188,813.00.
Page 50 of 847
Item 5e
Approved Loan Amount Based on Original Estimate
City Hall Fire Station 1 Total
PG&E Approved Loan Amount $98,580.93 $90,335.66 $188,916.59
"Buy Down" Assumption $15,745.40 $0.00 $15,745.40
Total Available $114,326.33 $90,335.66 $204,661.99
Revised Project Costs Based on Final Proposal
City Hall Fire Station 1 Total
PG&E Approved Loan Amount $99,864.00 $88,949.00 $188,813.00
"Buy Down" Assumption $7,590.07 $0.00 $7,590.07
Total Cost $107,454.07 $88,949.00 $196,403.07
Estimated Annual Cost Savings $19,637.00
Simple Payback (Years) 9.94
Projected Net Cash Flow $111,752.00
ALTERNATIVES
1. The Council could pursue an alternative contractor for installing lighting
retrofits.
2. The Council could pursue an alternative financing mechanism for funding
lighting retrofits. This is not recommended as there are no known 0 percent interest
loans currently available, nor is there the necessary additional approximately
$188,000 additional funds available in the 2021-23 Financial Plan to directly pay for
the project.
3. The Council could choose not to pursue lighting retrofits at this time.
ATTACHMENTS
A – PG&E On-Bill Financing Agreement
B – Draft Resolution making findings related to Government Code Section 4217
C – CC-LEAP City Hall and Fire Station #1 Project Proposal
Page 51 of 847
Page 52 of 847
____________________________________________________
Automated Document – Preliminary Statement Part A
1
Form 79-1194
Advice 4085-G/5517-E
April 2019
LOCAL AGENCY AND DISTRICT
CUSTOMERS
ON-BILL FINANCING LOAN AGREEMENT
The undersigned Local Agency or District1 Customer (“Customer”) has contracted for the provision of energy efficiency/demand response equipment
and services (the “Work ”) which qualify for one or more of PG&E’s applicable rebate or incentive programs. Subject to the conditions (including the
process for Adjustment and preconditions to funding) set forth below, Pacific Gas and Electric Company (“PG&E”) shall extend a loan (the “Loan”) to
Customer in the amount of the loan balance (the “Loan Balance”) pursuant to the terms of this On-Bill Financing Loan Agreement (“Loan Agreement”)
and PG&E’s rate schedules E-OBF and/or G-OBF, as applicable (the “Schedule”).
To request the Loan, Customer has submitted a completed On-Bill Financing Application and associated documentation as required by PG&E (the
“Application”). Collectively the Application and this Loan Agreement (including any Adjustment hereunder) comprise the “Agreement".
1.Customer shall arrange for its Contractor, as identified at the end of this Agreement (“Contractor”), to provide the Work as described in the
Application.
2.The estimated Loan Balance is set forth below. The total cost of the Work as installed, rebate/incentive for qualifying energy efficiency
measures, Loan Balance, monthly payment, and loan term specified in this Loan Agreement may be adjusted, if necessary, after the Work and
the post-installation inspection described in the Application and/or herein are completed (the “Adjustment”). The Adjustment will be calculated
using the actual total cost of the Work, as installed, and the estimated energy savings (as described in the Application) of such Work. In no
event will the Loan Balance be increased without Customer’s written consent, even if Customer is eligible for such increased Loan Balance.
Moreover, in no event will the Loan Balance exceed the maximum loan amount stipulated in the Application. Customer understands that in
order to be eligible for the Loan, the initial Loan Balance for Work may not fall below the minimum loan amount, nor may the payback period
exceed the maximum payback period. Accordingly, if after the Adjustment, the Loan Balance falls below the minimum loan amount or
if the simple payback period exceeds the program maximum payback period, each as described in the Application, PG&E shall have
no obligation to extend the Loan, as the Work would not meet program requirements. The Adjustment described in this paragraph will
be communicated to the Customer in writing and will automatically become part of this Loan Agreement, except that any proposed increase in
the Loan Balance will only become part of this Loan Agreement upon Customer’s written consent to such increase.
3.PG&E shall have no liability in connection with, and makes no warranties, expressed or implied, regarding the Work. The Parties
acknowledge and agree that PG&E is only providing the Local Agency or District cited here with financing. The Customer has independently
hired contractors ("Local Agency or District Contractors") to perform the work on behalf of the Customer to qualify for financing. The Customer
acknowledges and agrees that the Local Agency or District Contractors are not third party beneficiaries to this agreement between the
Customer and PG&E. To the extent authorized by law and subject to appropriation of the Legislature, the Customer agrees that it will look only
to Local Agency or District Contractors for any claims related to the installed equipment or its performance and that PG&E shall have no
responsibility or liability, except for the payment of the loan proceeds, and the Customer shall indemnify PG&E for any claims made by the
Local Agency or District Contractors against PG&E.
4.Customer represents and warrants that (a) Customer is receiving this Loan solely for Work obtained in connection with Customer’s business,
and not for personal, family or household purposes; (b) Customer, if not an individual or a government agency, is duly organized, validly
existing and in good standing under the laws of its state of formation, and has full power and authority to enter into this Agreement and to
carry out the provisions of this Agreement. Customer is duly qualified and in good standing to do business in all jurisdictions where such
qualification is required; (c) this Loan Agreement has been duly authorized by all necessary proceedings, has been duly executed and
delivered by Customer and is a valid and legally binding agreement of Customer duly enforceable in accordance with its terms; (d) no consent,
approval, authorization, order, registration or qualification of or with any court or regulatory authority or other governmental body having
jurisdiction over Customer is required for, and the absence of which would adversely affect, the legal and valid execution and delivery of this
Loan Agreement, and the performance of the transactions contemplated by this Loan Agreement; (e) the execution and delivery of this Loan
Agreement by Customer hereunder and the compliance by Customer with all provisions of this Loan Agreement: (i) will not conflict with or
violate any Applicable Law; and (ii) will not conflict with or result in a breach of or default under any of the terms or provisions of any loan
agreement or other contract or agreement under which Customer is an obligor or by which its property is bound; and (f) all factual information
furnished by Customer to PG&E in the Application and pursuant to this Agreement is true and accurate.
5.The Application must include the Federal Tax Identification Number or Social Security Number of the party who will be the recipient of the
checks for the rebate/incentive or any Loan proceeds. Checks may be issued directly to the Customer or its designated Contractor or both, for
the benefit of the Customer, as specified below. Customer acknowledges that PG&E will not be responsible for any tax liability imposed on the
Customer or its contractor in connection with the transactions contemplated under the Agreement, whether by virtue of the Loan contemplated
under the Agreement, or otherwise, and Customer shall indemnify PG&E for any tax liability imposed upon PG&E as a result of the
transactions contemplated under the Agreement.
________________________________________________________________________________
1 Local Agency or District as defined in California Government Code §50001 and §58004.
Page 53 of 847
____________________________________________________
Automated Document – Preliminary Statement Part A
2
Form 79-1194
Advice 4085-G/5517-E
April 2019
6.Upon completion of the Work, Customer shall send a written confirmation of completion to PG&E’s On-Bill Financing Program Administrator at
the address listed in Section 15. Within 60 days after receiving the confirmation, PG&E (a) will conduct a post installation inspection and
project verification, including review of invoices, receipts and other documents as required by PG&E to verify the correctness of any amounts
claimed by Customer; and (b) will adjust, if necessary, the total cost, incentive, Loan Balance, monthly payment, and loan term as stated
above. Customer shall give PG&E reasonable access to its premises and the Work. If the Work conforms to all requirements of the
Agreement and all amounts claimed by Customer as Work costs are substantiated to PG&E’s reasonable satisfaction, PG&E will issue a
check (“Check ”) to Customer or Contractor (as designated by Customer in Section 15) for all amounts PG&E approves for payment in
accordance with the Agreement. The date of such issuance is the “Issuance Date ”. If the Check is issued to Customer, Customer shall be
responsible for paying any outstanding fees due to Contractor for the Work. If the Check is less than the amount due from Customer to
Contractor, Customer shall be responsible for the excess due to the Contractor.
7.Customer shall repay the Loan Balance to PG&E as provided in this Loan Agreement irrespective of whether or when the Work is completed,
or whether the Work is in any way defective or deficient, and whether or not the Work delivers energy efficiency savings to Customer.
8.The monthly payments will be included by PG&E on the Account's regular energy service bills, or by separate bill, in PG&E’s discretion.
Regardless whether the monthly payments are included in the regular utility bill or a separate loan installment bill, the following repayment
terms will apply:
a.The Customer agrees to repay to PG&E the Loan Balance in the number of payments listed below and in equal
installments (with the final installment adjusted to account for rounding), by the due date set forth in each PG&E utility
bill or loan installment bill rendered in connection with Customer’s account (identified by the number set forth below)
(“Account”), commencing with the bill which has a due date falling at least 30 days after the Issuance Date.
b.If separate energy service bills and loan installment bills are provided, amounts due under this Loan Agreement as
shown in the loan installment bill shall be deemed to be amounts due under each energy services bill to the Account,
and a default under this Loan Agreement shall be treated as a default under the Account.
c.If the Customer is unable to make a full utility bill payment in a given month, payment arrangements may be made at
PG&E’s discretion.
d.Any partial bill payments received for a month will be applied in equal proportion to the energy charges and the loan
obligation for that month, and the Customer may be considered in default of both the energy bill and the loan
installment bill.
e.Further payment details are set forth below.
9.Any notice from PG&E to Customer regarding the Program or the transactions contemplated under the Loan Agreement may be provided
within a PG&E utility bill or loan installment bill, and any such notices may also be provided to Customer at the address below or to the
Customer’s billing address of record in PG&E’s customer billing system from time to time, and in each case shall be effective five (5) days
after they have been mailed.
10.The Loan Balance shall not bear interest.
11.Customer may, without prepayment penalty, pay the entire outstanding loan balance in one lump sum payment provided the customer first
notifies PG&E by telephoning the toll free phone number (1-800-468-4743), and by sending written notice to PG&E On-Bill Financing
Program Administrator at the address listed below, in advance of making the lump sum payment. Accelerated payments that are received
from Customer without PG&E’s prior approval may, at PG&E’s sole discretion, be applied proportionally to subsequent energy charges and
Loan repayments and PG&E shall have no obligation to apply accelerated payments exclusively to reduction of the outstanding Loan.
12.The entire outstanding Loan Balance will become immediately due and payable, and shall be paid by Customer within 30 days if: (i) the
Account is closed or terminated for any reason; (ii) Customer defaults under the Agreement; (iii) Customer sells the equipment forming part of
the Work to any third party; or (iv) Customer becomes Insolvent. Customer becomes “Insolvent” if: (i) Customer is unable to pay its debts as
they become due or otherwise becomes insolvent, makes a general assignment for the benefit of its creditors, or suffers or permits the
appointment of a receiver for its business or assets or otherwise ceases to conduct business in the normal course; or (ii) any proceeding is
commenced by or against Customer under any bankruptcy or insolvency law that is not dismissed or stayed within 45 days.
13.Customer understands that without limiting any other remedy available to PG&E against Contractor or Customer, failure to repay the Loan
Balance in accordance with the terms of the Agreement could result in shut-off of utility energy service, adverse credit reporting,
and collection procedures, including, without limitation, legal action.
14.If there is any conflict among the documents comprising the Agreement, the following order of priority shall apply: 1. this Loan Agreement; 2.
the Application; 3. any documents attached to the Application.
Page 54 of 847
____________________________________________________
Automated Document – Preliminary Statement Part A
3
Form 79-1194
Advice 4085-G/5517-E
April 2019
15.LOCAL AGENCY OR DISTRICT REQUIREMENT
a.All Payment Obligations Subject to Appropriation
The Customer acknowledges that the cost incurred pursuant to this Loan Agreement will be part of the monthly bill for
electric use. All payment obligations and the Work replacement obligations of the Customer under this Loan
Agreement or any related agreement or application is subject to appropriation by the Legislative body belonging to
Local Agency or District cited in this loan agreement.
b.No Lien or Encumbrance; Subordination:
(1) Notwithstanding any other provision in this Loan Agreement – , PG&E acknowledges that nothing in this Loan
Agreement shall constitute a mortgage, charge, assignment, transfer, pledge, lien or encumbrance upon either the
Work or any part of the buildings, structures or related facilities in which the Work is constructed, installed or situated
(collectively, the “Related Facilities”). Accordingly, PG&E agrees it will not record or file any instrument that would
indicate or imply it has a security interest in the Related Facilities, including but not limited to a UCC-1.
(2) In addition to the preceding paragraph (a), if this Loan Agreement were ever construed or deemed to create any
such encumbrance, then: (i) this Loan Agreement shall be junior and subordinate and subject in all respects to the
terms and conditions of any and all leases, and indentures related to lease revenue bonds issued by the Local Agency
or District cited here or any other issuer of bonds on behalf of the Local Agency or District concerning the Related
Facilities entered into in the past, the present or the future (the “Senior Security Documents”); and (ii) any term or
condition of this Loan Agreement relating to any right, title or interest in the Related Facilities or other benefits derived
there from shall be in all respects junior and subordinate to, and subject to the terms of, the Senior Security
Documents.
Page 55 of 847
____________________________________________________
Automated Document – Preliminary Statement Part A
4
Form 79-1194
Advice 4085-G/5517-E
April 2019
16.Loan Particulars.
This table is to be completed by PG&E
Total Cost Incentive Customer
Buy- Down
(if applicable)
Loan Balance 1 Monthly Payment Term 2
(months)
Number of
Payments
$ 114,326.23 $-$ 15,745.30 $ 98,580.93 $821.51 120 120
Check Made Payable to Customer □ or Contractor □
[customer to select payment method. Note that only one check can be issued]
17.This agreement at all times shall be subject to such modifications as the California Public Utilities Commission may direct from time to
time in the exercise of its jurisdiction.
Federal Tax ID or Social Security #, Customer Federal Tax ID or Social Security #, Contractor
95-6000781
PG&E Account # / Service Agreement #
2473387396 / 2473387193
Account Name, Customer Name, Contractor
Primary Customer Name: CITY OF SAN LUIS OBISPO
- 990 PALM ST
Project ID: Site Specific OBF - 30227
FA ID: 012279
Customer Address (For OBF Check Delivery) Contractor Address (For OBF Check Delivery)
CITY OF SAN LUIS OBISPO, SHELLY STANWYCK
990 PALM ST
SAN LUIS OBISPO CA 93401
Name and Title of Authorized Representative of
.Customer
Name and Title of Authorized Representative of
.Contractor
Signature of Authorized Representative of Customer
Date
ACCEPTED: Pacific Gas and Electric Company
By Date
PG&E On-Bill Financing Authorized Representative
Address:
On-Bill Financing Program
Mail Code N6G
Pacific Gas and Electric Company
PO Box 770000
San Francisco, CA 94177-0001
1 The Loan Balance shall not exceed two-hundred fifty thousand dollars ($250,000), except where, in PG&E’s
sole opinion, the opportunity for uniquely large energy savings exist, in which case the Loan Balance may
exceed two-hundred fifty thousand dollars ($250,000) but shall not exceed four million dollars ($4,000,000).
2 The loan term in months will be established by PG&E at the time of the OBF Loan Agreement initiation. The
maximum loan term shall be one hundred and twenty (120) months.
Page 56 of 847
____________________________________________________
Automated Document – Preliminary Statement Part A
5
Form 79-1194
Advice 4085-G/5517-E
April 2019
On-Bill Financing Program (OBF)
Loan Calculation Summary Sheet
Simple project payback per meter
Customer Name:CITY OF SAN LUIS OBISPO - 990 PALM ST
Project Number:FA ID 012279
Calculations from:Original
(A)
PROJECT COST FOR
MEASURES
(B)
REBATES or INCENTIVES Customer Down Payment
or Buy-Down
CUSTOMER
TOTAL LOAN
AMOUNT
(C)
CUSTOMER
AVERAGE RATE
PER kWh
(D)
CUSTOMER AVERAGE
RATE PER Therm
(E)
ESTIMATED
ANNUAL
ENERGY
SAVINGS
(kWh)
(F)
ESTIMATED
ANNUAL GAS
SAVINGS
(Therm)
ESTIMATED
ANNUAL ENERGY
COST SAVINGS
SIMPLE
PAYBACK
IN YEARS
$114,326.23 $-$15,745.30 $98,580.93 $0.24 $-41,435.00 -$9,944.40 9.91
PAYBACK IN MONTHS
BASED ON EXPECTED
ENERGY SAVINGS
LOAN TERM (MONTHS)
(1 month added for bill
neutrality)
CUSTOMER FIXED
MONTHLY LOAN
PAYMENT
ESTIMATED
MONTHLY
ENERGY COST
SAVINGS
119 120 $821.51 $828.70
(C) =(From utility bill) Total $ amount (12-month) / Total kWh (same 12-month)
(D) =(From utility bill) Total $ amount (12-month) / Total therm (same 12-month)
Page 57 of 847
____________________________________________________
Automated Document – Preliminary Statement Part A
1
Form 79-1194
Advice 4085-G/5517-E
April 2019
LOCAL AGENCY AND DISTRICT
CUSTOMERS
ON-BILL FINANCING LOAN AGREEMENT
The undersigned Local Agency or District1 Customer (“Customer”) has contracted for the provision of energy efficiency/demand response equipment
and services (the “Work ”) which qualify for one or more of PG&E’s applicable rebate or incentive programs. Subject to the conditions (including the
process for Adjustment and preconditions to funding) set forth below, Pacific Gas and Electric Company (“PG&E”) shall extend a loan (the “Loan”) to
Customer in the amount of the loan balance (the “Loan Balance”) pursuant to the terms of this On-Bill Financing Loan Agreement (“Loan Agreement”)
and PG&E’s rate schedules E-OBF and/or G-OBF, as applicable (the “Schedule”).
To request the Loan, Customer has submitted a completed On-Bill Financing Application and associated documentation as required by PG&E (the
“Application”). Collectively the Application and this Loan Agreement (including any Adjustment hereunder) comprise the “Agreement".
1.Customer shall arrange for its Contractor, as identified at the end of this Agreement (“Contractor”), to provide the Work as described in the
Application.
2.The estimated Loan Balance is set forth below. The total cost of the Work as installed, rebate/incentive for qualifying energy efficiency
measures, Loan Balance, monthly payment, and loan term specified in this Loan Agreement may be adjusted, if necessary, after the Work and
the post-installation inspection described in the Application and/or herein are completed (the “Adjustment”). The Adjustment will be calculated
using the actual total cost of the Work, as installed, and the estimated energy savings (as described in the Application) of such Work. In no
event will the Loan Balance be increased without Customer’s written consent, even if Customer is eligible for such increased Loan Balance.
Moreover, in no event will the Loan Balance exceed the maximum loan amount stipulated in the Application. Customer understands that in
order to be eligible for the Loan, the initial Loan Balance for Work may not fall below the minimum loan amount, nor may the payback period
exceed the maximum payback period. Accordingly, if after the Adjustment, the Loan Balance falls below the minimum loan amount or
if the simple payback period exceeds the program maximum payback period, each as described in the Application, PG&E shall have
no obligation to extend the Loan, as the Work would not meet program requirements. The Adjustment described in this paragraph will
be communicated to the Customer in writing and will automatically become part of this Loan Agreement, except that any proposed increase in
the Loan Balance will only become part of this Loan Agreement upon Customer’s written consent to such increase.
3.PG&E shall have no liability in connection with, and makes no warranties, expressed or implied, regarding the Work. The Parties
acknowledge and agree that PG&E is only providing the Local Agency or District cited here with financing. The Customer has independently
hired contractors ("Local Agency or District Contractors") to perform the work on behalf of the Customer to qualify for financing. The Customer
acknowledges and agrees that the Local Agency or District Contractors are not third party beneficiaries to this agreement between the
Customer and PG&E. To the extent authorized by law and subject to appropriation of the Legislature, the Customer agrees that it will look only
to Local Agency or District Contractors for any claims related to the installed equipment or its performance and that PG&E shall have no
responsibility or liability, except for the payment of the loan proceeds, and the Customer shall indemnify PG&E for any claims made by the
Local Agency or District Contractors against PG&E.
4.Customer represents and warrants that (a) Customer is receiving this Loan solely for Work obtained in connection with Customer’s business,
and not for personal, family or household purposes; (b) Customer, if not an individual or a government agency, is duly organized, validly
existing and in good standing under the laws of its state of formation, and has full power and authority to enter into this Agreement and to
carry out the provisions of this Agreement. Customer is duly qualified and in good standing to do business in all jurisdictions where such
qualification is required; (c) this Loan Agreement has been duly authorized by all necessary proceedings, has been duly executed and
delivered by Customer and is a valid and legally binding agreement of Customer duly enforceable in accordance with its terms; (d) no consent,
approval, authorization, order, registration or qualification of or with any court or regulatory authority or other governmental body having
jurisdiction over Customer is required for, and the absence of which would adversely affect, the legal and valid execution and delivery of this
Loan Agreement, and the performance of the transactions contemplated by this Loan Agreement; (e) the execution and delivery of this Loan
Agreement by Customer hereunder and the compliance by Customer with all provisions of this Loan Agreement: (i) will not conflict with or
violate any Applicable Law; and (ii) will not conflict with or result in a breach of or default under any of the terms or provisions of any loan
agreement or other contract or agreement under which Customer is an obligor or by which its property is bound; and (f) all factual information
furnished by Customer to PG&E in the Application and pursuant to this Agreement is true and accurate.
5.The Application must include the Federal Tax Identification Number or Social Security Number of the party who will be the recipient of the
checks for the rebate/incentive or any Loan proceeds. Checks may be issued directly to the Customer or its designated Contractor or both, for
the benefit of the Customer, as specified below. Customer acknowledges that PG&E will not be responsible for any tax liability imposed on the
Customer or its contractor in connection with the transactions contemplated under the Agreement, whether by virtue of the Loan contemplated
under the Agreement, or otherwise, and Customer shall indemnify PG&E for any tax liability imposed upon PG&E as a result of the
transactions contemplated under the Agreement.
________________________________________________________________________________
1 Local Agency or District as defined in California Government Code §50001 and §58004.
Page 58 of 847
____________________________________________________
Automated Document – Preliminary Statement Part A
2
Form 79-1194
Advice 4085-G/5517-E
April 2019
6.Upon completion of the Work, Customer shall send a written confirmation of completion to PG&E’s On-Bill Financing Program Administrator at
the address listed in Section 15. Within 60 days after receiving the confirmation, PG&E (a) will conduct a post installation inspection and
project verification, including review of invoices, receipts and other documents as required by PG&E to verify the correctness of any amounts
claimed by Customer; and (b) will adjust, if necessary, the total cost, incentive, Loan Balance, monthly payment, and loan term as stated
above. Customer shall give PG&E reasonable access to its premises and the Work. If the Work conforms to all requirements of the
Agreement and all amounts claimed by Customer as Work costs are substantiated to PG&E’s reasonable satisfaction, PG&E will issue a
check (“Check ”) to Customer or Contractor (as designated by Customer in Section 15) for all amounts PG&E approves for payment in
accordance with the Agreement. The date of such issuance is the “Issuance Date ”. If the Check is issued to Customer, Customer shall be
responsible for paying any outstanding fees due to Contractor for the Work. If the Check is less than the amount due from Customer to
Contractor, Customer shall be responsible for the excess due to the Contractor.
7.Customer shall repay the Loan Balance to PG&E as provided in this Loan Agreement irrespective of whether or when the Work is completed,
or whether the Work is in any way defective or deficient, and whether or not the Work delivers energy efficiency savings to Customer.
8.The monthly payments will be included by PG&E on the Account's regular energy service bills, or by separate bill, in PG&E’s discretion.
Regardless whether the monthly payments are included in the regular utility bill or a separate loan installment bill, the following repayment
terms will apply:
a.The Customer agrees to repay to PG&E the Loan Balance in the number of payments listed below and in equal
installments (with the final installment adjusted to account for rounding), by the due date set forth in each PG&E utility
bill or loan installment bill rendered in connection with Customer’s account (identified by the number set forth below)
(“Account”), commencing with the bill which has a due date falling at least 30 days after the Issuance Date.
b.If separate energy service bills and loan installment bills are provided, amounts due under this Loan Agreement as
shown in the loan installment bill shall be deemed to be amounts due under each energy services bill to the Account,
and a default under this Loan Agreement shall be treated as a default under the Account.
c.If the Customer is unable to make a full utility bill payment in a given month, payment arrangements may be made at
PG&E’s discretion.
d.Any partial bill payments received for a month will be applied in equal proportion to the energy charges and the loan
obligation for that month, and the Customer may be considered in default of both the energy bill and the loan
installment bill.
e.Further payment details are set forth below.
9.Any notice from PG&E to Customer regarding the Program or the transactions contemplated under the Loan Agreement may be provided
within a PG&E utility bill or loan installment bill, and any such notices may also be provided to Customer at the address below or to the
Customer’s billing address of record in PG&E’s customer billing system from time to time, and in each case shall be effective five (5) days
after they have been mailed.
10.The Loan Balance shall not bear interest.
11.Customer may, without prepayment penalty, pay the entire outstanding loan balance in one lump sum payment provided the customer first
notifies PG&E by telephoning the toll free phone number (1-800-468-4743), and by sending written notice to PG&E On-Bill Financing
Program Administrator at the address listed below, in advance of making the lump sum payment. Accelerated payments that are received
from Customer without PG&E’s prior approval may, at PG&E’s sole discretion, be applied proportionally to subsequent energy charges and
Loan repayments and PG&E shall have no obligation to apply accelerated payments exclusively to reduction of the outstanding Loan.
12.The entire outstanding Loan Balance will become immediately due and payable, and shall be paid by Customer within 30 days if: (i) the
Account is closed or terminated for any reason; (ii) Customer defaults under the Agreement; (iii) Customer sells the equipment forming part of
the Work to any third party; or (iv) Customer becomes Insolvent. Customer becomes “Insolvent” if: (i) Customer is unable to pay its debts as
they become due or otherwise becomes insolvent, makes a general assignment for the benefit of its creditors, or suffers or permits the
appointment of a receiver for its business or assets or otherwise ceases to conduct business in the normal course; or (ii) any proceeding is
commenced by or against Customer under any bankruptcy or insolvency law that is not dismissed or stayed within 45 days.
13.Customer understands that without limiting any other remedy available to PG&E against Contractor or Customer, failure to repay the Loan
Balance in accordance with the terms of the Agreement could result in shut-off of utility energy service, adverse credit reporting,
and collection procedures, including, without limitation, legal action.
14.If there is any conflict among the documents comprising the Agreement, the following order of priority shall apply: 1. this Loan Agreement; 2.
the Application; 3. any documents attached to the Application.
Page 59 of 847
____________________________________________________
Automated Document – Preliminary Statement Part A
3
Form 79-1194
Advice 4085-G/5517-E
April 2019
15.LOCAL AGENCY OR DISTRICT REQUIREMENT
a.All Payment Obligations Subject to Appropriation
The Customer acknowledges that the cost incurred pursuant to this Loan Agreement will be part of the monthly bill for
electric use. All payment obligations and the Work replacement obligations of the Customer under this Loan
Agreement or any related agreement or application is subject to appropriation by the Legislative body belonging to
Local Agency or District cited in this loan agreement.
b.No Lien or Encumbrance; Subordination:
(1) Notwithstanding any other provision in this Loan Agreement – , PG&E acknowledges that nothing in this Loan
Agreement shall constitute a mortgage, charge, assignment, transfer, pledge, lien or encumbrance upon either the
Work or any part of the buildings, structures or related facilities in which the Work is constructed, installed or situated
(collectively, the “Related Facilities”). Accordingly, PG&E agrees it will not record or file any instrument that would
indicate or imply it has a security interest in the Related Facilities, including but not limited to a UCC-1.
(2) In addition to the preceding paragraph (a), if this Loan Agreement were ever construed or deemed to create any
such encumbrance, then: (i) this Loan Agreement shall be junior and subordinate and subject in all respects to the
terms and conditions of any and all leases, and indentures related to lease revenue bonds issued by the Local Agency
or District cited here or any other issuer of bonds on behalf of the Local Agency or District concerning the Related
Facilities entered into in the past, the present or the future (the “Senior Security Documents”); and (ii) any term or
condition of this Loan Agreement relating to any right, title or interest in the Related Facilities or other benefits derived
there from shall be in all respects junior and subordinate to, and subject to the terms of, the Senior Security
Documents.
Page 60 of 847
____________________________________________________
Automated Document – Preliminary Statement Part A
4
Form 79-1194
Advice 4085-G/5517-E
April 2019
16.Loan Particulars.
This table is to be completed by PG&E
Total Cost Incentive Customer
Buy- Down
(if applicable)
Loan Balance 1 Monthly Payment Term 2
(months)
Number of
Payments
$ 90,335.66 $-$ -$ 90,335.66 $799.43 113 113
Check Made Payable to Customer □ or Contractor □
[customer to select payment method. Note that only one check can be issued]
17.This agreement at all times shall be subject to such modifications as the California Public Utilities Commission may direct from time to
time in the exercise of its jurisdiction.
Federal Tax ID or Social Security #, Customer Federal Tax ID or Social Security #, Contractor
95-6000781
PG&E Account # / Service Agreement #
0965296173 / 0965296595
Account Name, Customer Name, Contractor
Primary Customer Name: CITY OF SAN LUIS OBISPO
- 2160 SANTA BARBARA ST
Project ID: Site Specific OBF - 30228
FA ID: 012278
Customer Address (For OBF Check Delivery) Contractor Address (For OBF Check Delivery)
CITY OF SAN LUIS OBISPO, SHELLY STANWYCK
2160 SANTA BARBARA AVE
SAN LUIS OBISPO CA 93401
Name and Title of Authorized Representative of
.Customer
Name and Title of Authorized Representative of
.Contractor
Signature of Authorized Representative of Customer
Date
ACCEPTED: Pacific Gas and Electric Company
By Date
PG&E On-Bill Financing Authorized Representative
Address:
On-Bill Financing Program
Mail Code N6G
Pacific Gas and Electric Company
PO Box 770000
San Francisco, CA 94177-0001
1 The Loan Balance shall not exceed two-hundred fifty thousand dollars ($250,000), except where, in PG&E’s
sole opinion, the opportunity for uniquely large energy savings exist, in which case the Loan Balance may
exceed two-hundred fifty thousand dollars ($250,000) but shall not exceed four million dollars ($4,000,000).
2 The loan term in months will be established by PG&E at the time of the OBF Loan Agreement initiation. The
maximum loan term shall be one hundred and twenty (120) months.
Page 61 of 847
____________________________________________________
Automated Document – Preliminary Statement Part A
5
Form 79-1194
Advice 4085-G/5517-E
April 2019
On-Bill Financing Program (OBF)
Loan Calculation Summary Sheet
Simple project payback per meter
Customer Name:CITY OF SAN LUIS OBISPO - 2160 SANTA BARBARA ST
Project Number:FA ID 012278
Calculations from:Original
(A)
PROJECT COST FOR
MEASURES
(B)
REBATES or INCENTIVES Customer Down Payment
or Buy-Down
CUSTOMER
TOTAL LOAN
AMOUNT
(C)
CUSTOMER
AVERAGE RATE
PER kWh
(D)
CUSTOMER AVERAGE
RATE PER Therm
(E)
ESTIMATED
ANNUAL
ENERGY
SAVINGS
(kWh)
(F)
ESTIMATED
ANNUAL GAS
SAVINGS
(Therm)
ESTIMATED
ANNUAL ENERGY
COST SAVINGS
SIMPLE
PAYBACK
IN YEARS
$90,335.66 $-$-$90,335.66 $0.24 $-40,231.00 -$9,655.44 9.36
PAYBACK IN MONTHS
BASED ON EXPECTED
ENERGY SAVINGS
LOAN TERM (MONTHS)
(1 month added for bill
neutrality)
CUSTOMER FIXED
MONTHLY LOAN
PAYMENT
ESTIMATED
MONTHLY
ENERGY COST
SAVINGS
112 113 $799.43 $804.62
(C) =(From utility bill) Total $ amount (12-month) / Total kWh (same 12-month)
(D) =(From utility bill) Total $ amount (12-month) / Total therm (same 12-month)
Page 62 of 847
R ______
RESOLUTION NO. _____ (2021 SERIES)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS
OBISPO, CALIFORNIA, MAKING FINDINGS ON ENERGY SAVINGS
AND DETERMINING OTHER MATTERS IN CONNECTION WITH
ENERGY EFFICIENCY RETROFITS
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
WHEREAS, the City of San Luis Obispo (“City”) desires to reduce energy costs at
its facilities; and
WHEREAS, the City proposes to enter into an On-Bill Financing Agreement (“OBF
Agreement”) and related contract documents with PG&E (“Utility”), who in turn will use
Electricraft Inc. (“Contractor”) as the Contractor for facilities at the City’s real property
sites, pursuant to which Contractor will remove old lighting fixtures and install new LED
lighting in the City’s facilities; and
WHERAS, through the Utility On-Bill Financing Program the City will have
$7,590.07 capital outlay and will continue to pay their utility bills through the loan’s
existence; and
WHEREAS, Contractor has provided the City with analysis showing the financial
and other benefits of entering into the OBF Agreement, which analysis is attached here
to as Exhibit A and made part hereof by this reference; and
WHEREAS, Exhibit A includes data showing that the anticipated cost to the City
for the electrical energy saved by the LED upgrades will be equal to/or less than the
anticipated cost of the project thus making these projects bill neutral; and
WHEREAS, Contractor was the selected vendor for the On-Bill Financing project
due to their low bid and Contractor’s carrying the costs and structuring of the project to
have minimal capital outlay to the City; and
WHEREAS, the City proposes to enter into the On-Bill Financing Agreements and
related contract documents in substantially the form presented at this meeting, subject to
such changes, insertions or omissions as the City Manager and City Attorney reasonably
deems necessary following the Council’s adoption of this Resolution; and
WHEREAS, pursuant to Government Code section 4217.12, this Council held a
public hearing, public notice of which was given two weeks in advance, to receive public
comment.
Page 63 of 847
Resolution No. _____ (2021 Series) Page 2
R ______
NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis
Obispo that:
SECTION 1. The terms of the OBF Agreement and related agreements are in the
best interests of the City.
SECTION 2. In accordance with Government Code section 4217.12, and based
on data provided by Exhibit A, the Council finds that the anticipated cost to the City for
lighting retrofits provided by the OBF Agreements will be less than or equal to the
anticipated cost to the City of electrical energy that would have been consumed by the
City in the absence of the OBF Agreements.
SECTION 3. The City Manager and City Attorney are hereby authorized and
directed to negotiate any further changes, insertions and omissions to the OBF
Agreement as they reasonably deem necessary, and thereafter to execute and deliver
the OBF Agreement following the Council’s adoption of this Resolution. 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 4. Environmental Review. The City Council hereby determines that the
execution of an OBF Agreement with Utility are statutorily and categorically exempt from
environmental review on the basis that the projects are: installation of LED upgrades in
and on existing facilities or at existing parking lots (Public Resources Code § 21080.35;
new construction or conversion of small structures (CEQA Guidelines § 15303); minor
alterations to land (CEQA Guidelines § 15304); projects which consist of the construction
or placement of minor accessory structures to existing facilities (CEQA Guidelines §
15311); and activities which can be seen with seen with certainty that there is no
possibility that the activity in question may have a significant effect on the environment
(CEQA Guidelines § 15061(b)(3)).
Page 64 of 847
Resolution No. _____ (2021 Series) Page 3
R ______
SECTION 5. City staff are hereby authorized to file and process a Notice of CEQA
Exemption for the project in accordance with CEQA and the State CEQA Guidelines, and
the findings set forth in this Resolution.
Upon motion of Council Member _______________________, seconded by Council
Member _______________________, and on the following roll call vote:
AYES:
NOES:
ABSENT:
The foregoing resolution was adopted this _____ day of ___________ 2021.
___________________________
Mayor Heidi Harmon
ATTEST:
______________________________
Teresa Purrington
City Clerk
APPROVED AS TO FORM:
_______________________________
J. Christine Dietrick
City Attorney
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the
City of San Luis Obispo, California, on ______________________.
___________________________
Teresa Purrington
City Clerk
Page 65 of 847
Page 66 of 847
City of SLO City Hall and Fire Station
#1 Joint Project Proposal
The City of San Luis Obispo enrolled in CC-LEAP in 2020 to take advantage of the no-cost
project management services available to help the agency move energy efficiency projects
from conception to completion. CC-LEAP performed an audit of City Hall and Fire Station #1
on December 11, 2020. This project proposal summarizes recommendations of the lighting
audit conducted by Enpowered on the aforementioned date.
Benefits of this project include improving safety and reliability, reducing maintenance costs, hedging against increasing
utility costs, and reducing greenhouse gas emissions by 57.74 metric tons annually.
Project Scope
Facility Energy Efficiency Measure Fixture
Qty
Est. Annual
kWh Savings
Est. Annual
Cost Savings*
Electricraft Gross
Project Cost Quote
Lee Wilson Electric Gross
Project Cost Quote
City Hall Interior LED Lighting Retrofits 260 41,435 $10,070 $106,171 $108,986
Fire Station #1 Interior LED Lighting Retrofits 217 40,231 $ 9,567 $88,949 $74,374
Total 477 81,666 $19,637 $195,120 $183,360
* Estimated Cost Savings ($/yr) is calculated using the PG&E’s blended utility rate of $0.24/kWh
Project Financials
The table below presents two different contractors’quotes, one quote from Lee Wilson Electric and another quote from
Electricraft, to compare financial metrics.
Electricraft’s Quote Lee Wilson Electric’s Quote
Gross Project Cost
City Hall: $106,171
Fire Station: $88,949
Total:$195,120
City Hall: $108,986
Fire Station: $74,374
Total:$183,360
Approved PG&E’s On-Bill Financing (OBF)
City Hall: $98,580.93
Fire Station: $90,335.66
Total: $188,916.59
Approved Project Buy-Down Amount
City Hall: $15,745.30
Fire Station: $0
Total: $15,745.30
1 Presented by Rachel Pennington - 6/10/21
Page 67 of 847
Estimated Revised PG&E OBF Amount*City Hall: $99,864
Fire Station: $88,949
Total: $188,813
City Hall: $99,864
Fire Station: $74,374
Total: $174,238
Estimated Revised Buy-Down Amount*
City Hall: $7,590.07
Fire Station: $0
Total:$7,590.07
City Hall: $10,405.07
Fire Station: $0
Total:$10,405.07
Estimated Annual Cost Savings**$19,637 $19,637
Simple Payback Period 9.94 9.34
Project’s Net Cash Flow***$111,752 $123,512
Return on Investment 0.39 0.45
* Final loan amount and buy-down will depend on implemented scope and final project costs
** Estimated Annual Cost Savings include only energy cost savings
*** Project’s Net Cash Flow is calculated over the existing useful life (EUL) of the equipment
Cash Flow Analysis
CC-LEAP provides expert guidance identifying financing opportunities available for public agencies and applying and
securing them for eligible agencies. Options that are available to the City of SLO include Cash and On-Bill Financing (OBF).
Additional details about OBF can be found in Appendix B.
The projected annual cash-flow for the City of SLO using Electricraft’s updated project cost quote is outlined below.
Est. PG&E
Principal
Loan
Interest
Est. PG&E
OBF Term
$188,813 0.0%10 years
Year Incentives &
Financing
Est. Utility
Savings
Total Cash
Inflows
Est. PG&E
OBF Payment
Total Cash
Outflows
Net Cash
Flows
0 $188,813 $188,813 ($195,120)($6,307)
1 $20,423 $20,423 ($19,637)($19,637)$786
2 $21,240 $21,240 ($19,637)($19,637)$1,603
3 $22,089 $22,089 ($19,637)($19,637)$2,452
4 $22,973 $22,973 ($19,637)($19,637)$3,336
5 $23,892 $23,892 ($19,637)($19,637)$4,255
6 $24,848 $24,848 ($19,637)($19,637)$5,210
7 $25,842 $25,842 ($19,637)($19,637)$6,204
2 Presented by Rachel Pennington - 6/10/21
Page 68 of 847
8 $26,875 $26,875 ($19,637)($19,637)$7,238
9 $27,950 $27,950 ($19,637)($19,637)$8,313
10 $29,068 $29,068 ($12,077)($12,077)$16,991
11 $30,231 $30,231 $30,231
12 $31,440 $31,440 $31,440
Totals $306,872 $495,685 ($188,813)($394,862)$111,752
The projected annual cash-flow for the City of SLO using Lee Wilson Electric’s project cost quote is outlined below.
Est. PG&E
Principal
Loan
Interest
Est. PG&E
OBF Term
$174,238 0.0%10 years
Year Incentives &
Financing
Est. Utility
Savings
Total Cash
Inflows
Est. PG&E
OBF Payment
Total Cash
Outflows
Net Cash
Flows
0 $174,238 $174,238 ($183,360)($9,122)
1 $20,423 $20,423 ($19,637)($19,637)$786
2 $21,240 $21,240 ($19,637)($19,637)$1,603
3 $22,089 $22,089 ($19,637)($19,637)$2,452
4 $22,973 $22,973 ($19,637)($19,637)$3,336
5 $23,892 $23,892 ($19,637)($19,637)$4,255
6 $24,848 $24,848 ($19,637)($19,637)$5,210
7 $25,842 $25,842 ($19,637)($19,637)$6,204
8 $26,875 $26,875 ($17,475)($17,475)$9,400
9 $27,950 $27,950 ($10,070)($10,070)$17,880
10 $29,068 $29,068 ($9,231)($9,231)$19,837
11 $30,231 $30,231 $30,231
12 $31,440 $31,440 $31,440
Totals $306,872 $481,110 ($174,238)($357,598)$123,512
3 Presented by Rachel Pennington - 6/10/21
Page 69 of 847
Project Milestones and Activities
CC-LEAP will assist your agency with completing your energy efficiency projects in an expedited manner,with an anticipated
construction start date of August 2021. Your Project Manager, Rachel Pennington,will work with you to refine these
proposed dates and the project activities.
Milestone Date
Project Proposal Approval June 2021
Scope of Work approval July 2021
Council/Director Approval Date July 2021
Construction Start Date August 2021
4 Presented by Rachel Pennington - 6/10/21
Page 70 of 847
Appendix A: Financial Metrics Definitions
Gross Project Cost: the total of all construction costs for each measure including direct labor, materials,equipment, the
contractor’s adjustment factor and all task order processing fees.
Net Present Value (NPV):NPV takes into account the time value of money and indicates what a project’s lifetime cash flow is
worth today. NPV is determined by taking the sum of the present value of all current and future cash flows, including
purchase and installation costs, and future utility and maintenance savings.
Reimbursable Costs:Money returned by the utilities after the project has been installed with the Installation Report
submitted and approved.
Simple Payback Period (SPP):the amount of time required to recover the initial costs of a project from its savings.A simple
payback period ignores the time value of money and assumes that future savings occur in even amounts each year.For
example,a $1,000 investment that saves $500 each year has a two-year simple payback period.A project is economically
acceptable if the payback period is less than the length of the project life.
SPP = Net Project Cost ($) / Annual Savings ($/yr)
Financing Assumptions
Discount Rate 4%
Utility Escalation Rate 4%
Inflation Rate 3%
Estimates of potential Investor-Owned Utility (IOU)incentives and On-Bill Financing funding values are based on the most up-to-date
information available from the corresponding utility.Utilities reserve the right to change and/or terminate funding for Energy
Efficiency projects based on evolving priorities as determined by California Public Utilities Commission directives.These changes can
happen without notice.Furthermore,errors in submitted documentation,delays in project implementation,and lack of adherence to
utility program requirements can all impact the final IOU Incentive and On-Bill Financing values and approvals.
5 Presented by Rachel Pennington - 6/10/21
Page 71 of 847
Appendix B: On-Bill Financing FAQs
What is On-Bill Financing?
On-Bill Financing, or OBF, assists eligible customers finance their qualified energy efficiency projects.The loan is a
no-interest, no-fee loan repaid through the customer’s monthly energy bill.
Who is Eligible?
PG&E commercial, government, and nonprofit customers are eligible. To participate, you must:
●Have 24 months of billing history at the project site address
●Have zero disconnect or late payment notices within the last 12 months
●Have matching name and tax ID number included in the Customer’s billing account
●Select either the On-Bill Financing or On-Bill Financing with Incentives pathway
What are the Loan Limits?
Loan terms are a maximum of 120 months or 10 years.Loan amounts must be between $5,000-$250,000 per premise,
though an exemption of up to $4 million can be granted on a case by case basis. Loans above $250,000 may not be combined
with rebates or other incentives. Certain caps may apply, your CC-LEAP project manager will know if these caps apply to your
project.
How do I Apply?
Since this form of financing is available to current utility customers, the application and implementation process is relatively
streamlined and allows for easy adoption of energy efficient measures. Your CC-LEAP project manager will be happy to assist
you in this process.
How does it work?
Your CC-LEAP project manager will help along every step of the way to securing your OBF funds:
1.Submit the OBF application along with applicable Incentives Applications
2.The utility will review the OBF Application and the agency’s payment history
3.A utility engineer or approved third-party inspector will conduct a pre-inspection
4.Upon approval and inspection, the OBF funds will be reserved
5.Equipment Installation may begin upon receipt of loan approval
6.When installation is complete, submit an Installation Report to the utility
7.The utility will review the installation report
8.If approved, OBF funds will be distributed at this time
9.The first zero-interest loan repayment will appear on the next scheduled utility bill.
6 Presented by Rachel Pennington - 6/10/21
Page 72 of 847
Appendix C: Additional Funding and Financing Options
California Energy Commission (CEC) Energy Conservation Assistance Act Low Interest Loans
The California Energy Commission’s Energy Conservation Assistance Act (ECAA)program offers 1%interest loans
to public agencies to finance energy efficiency and energy generation projects.0%interest loans are also offered
annually on a competitive basis to qualifying school districts.
Advantages and Key Considerations:
●Maximum loan is $3 million per application;
●Applications are accepted on a first-come, first-served basis;
●Loan can fund 100% of project costs within a 17 year maximum simple payback;
●Loan must be repaid from energy savings within a maximum of 20 years;
●Application support provided by your CC-LEAP Project Manager
IBank California Lending for Energy & Environmental Needs (CLEEN) Center
Low-Interest Financing
The IBank CLEEN Center offers financing for public agency energy generation, conservation, and storage projects
through the Statewide Energy Efficiency Program (SWEEP)and the Light Emitting Diode (LED) Street Lighting
Program. SWEEP finances facility energy efficiency projects; the LED program finances street lighting upgrade
projects.
Advantages and Key Considerations:
●All or any part of the costs of construction and renovation are eligible for financing
●Applicants must demonstrate project-readiness and feasibility to complete construction within 2 years after
IBank’s financing approval
●IBank prioritizes projects in areas with high unemployment rates, low median family income, declining or
slow growth in labor force employment, or high poverty rates
●Applications accepted on a rolling basis
7 Presented by Rachel Pennington - 6/10/21
Page 73 of 847
Page 74 of 847