Resolution 1995-45
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RESOLUTION NO. 95-45
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GILROY
AUTHORIZING THE CITY TO ENTER INTO
CERTAIN ENERGY CONSERVATION CONTRACTS
WHEREAS,
California Government Code Chapter 3.2,
comprising sections 4217.10 through 4217.18 ("Chapter 3.2"),
authorizes a public agency to enter into an energy service contract
if its governing body determines that the contract is in the best
interests of the public agency, and if such determination is made
at a regularly scheduled public hearing, public notice of which is
given at least two weeks in advance, at which the governing body
finds 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 circumstances; and
WHEREAS, Chapter 3.2 authorizes a public agency to enter
into a facility financing contract on such terms as are in the best
interests of the public agency, if such determination is made at
a regularly scheduled public hearing, public notice of which is
given at least two weeks in advance, and at which the governing
body finds that funds for the repayment of the financing are
projected to be available from funding which would otherwise have
been used for purchase of electrical, thermal, or other energy
required by the public agency in the absence of the energy
conservation facility; and
WHEREAS, the City of Gilroy (the "City") has entered into that
certain energy service contract with Honeywell, Inc. ("Honeywell")
called "Agreement with City of Gilroy for a Comprehensive Technical
Services Program" (the "Agreement"), that certain addendum to the
RESOLUTION NO. 95-45
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Agreement called "Addendum to the Agreement with city of Gilroy
for a Comprehensive Technical Services Program" (the "Addendum"),
and that certain facility financing contract called Lease with
Option To Purchase (the "Lease") pursuant to duly noticed and
regularly scheduled hearings on March 20, 1995 and June 5, 1995;
and
WHEREAS, the Agreement, the Addendum, and the Lease have
guaranteed the City energy savings in the amount of at least
$31,593 annually over the seven-year term of the Agreement, the
Addendum, and the Lease, and that the funds for the repayment of
the costs of financing the Agreement, the Addendum, and the Lease
are available from the energy and operational saving achieved in
the approximate amount of $91,275 per year.
NOW THEREFORE, based upon the foregoing facts, the Staff
Report and associated documents, all written and oral testimony and
Exhibit "A", attached hereto and incorporated herein by this
reference, BE IT RESOLVED:
1. That the City Council finds that it is in the best
interests of the City to enter into the Agreement, the Addendum,
and the Lease.
2. That the city Council finds that the cost of the energy
conservation products and services provided under the Agreement,
the Addendum, and the Lease, will be less than the amount which
would otherwise have been used for 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 Agreement, the
Addendum, and the Lease.
3. That the City Council finds that funds for the repayment
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of the financing are projected to be available from funding which
would otherwise have been used for purchase of electrical, thermal,
or other energy required by the public agency in the absence of the
energy conservation facility.
4. That the City Administrator and Mayor of the City are
hereby authorized and directed to perform such acts and execute
such documents as are necessary to enter into and complete the
City's obligations under the Agreement, the Addendum, and the
Lease.
PASSED AND ADOPTED this 5th day of June, 1995 by the
following vote:
AYES:
COUNCILMEMBERS:
GILROY, KLOECKER, MORALES, ROGERS,
ROWLISON, VALDEZ and GAGE.
NOES:
COUNCILMEMBERS:
NONE
ABSENT:
COUNCILMEMBERS:
NONE
APPROVED:
J,
Donald F.
ATTEST:
d'U4~ ,~
Susanne E. Steinmetz, City
\351\191501.1
52-060604706002
RESOLUTION NO. 95-45
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I, SUSANNE E. STEINMETZ, City Clerk of the City of Gilroy, do
hereby certify that the attached Resolution No. 95-45 is an original
resolution, duly adopted by the Council of the City of Gilroy at a regular
meeting of said Council held on the 5th day of
at which meeting a quorum was present.
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the
June
, 19...,2L,
Official Seal of the City of Gilroy this 6th day of
June
,1995.
~'O<k .k eo"
CJ.ty of Gilroy
(Seal)