HomeMy WebLinkAboutContracts & Agreements_131-2001CALIFORNIA ENERGY COMMISSION
ECAA -- AB 29X
ESTIMATED LOAN AMORTIZATION SCHEDULE
LOAN NUMBER
ORGANIZATION
LOAN AMOUNT
ANNUAL INTEREST RATE
NUMBER OF PAYMENTS
ESTIMATED FIRST DISBURSEMENT DATE
ESTIMATED PROJECT COMPLETION DATE
ASSUMED FIRST PAYMENT DATE
DATE TRANSACTION
09/15/2001 DISBURSEMENT
12/22/2002 PAYMENT NO.
06/22/2003 PAYMENT NO.
12/22/2003 PAYMENT NO.
06/22/2004 PAYMENT NO..
12/22/2004 PAYMENT NO.
06/22/2005 PAYMENT NO.
12/22/2005 PAYMENT NO.
06/22/2006 PAYMENT NO.
12/22/2006 PAYMENT NO.
06/22/2007 PAYMENT NO.
12/22/2007 PAYMENT NO.
06/22/2008 PAYMENT NO.
AMOUNT ACCRUED
INTEREST
1,500,000.00
1 140,650.03
2 140,650.03
3 140,650.03
4 140,650.03
5 140,650.03
6 140,650.03
7 140,650.03
8 140,650.03
9 140,650.03
10 140,650.03
11 140,650.03
12 140,649.95
57,082.18
21,188.27
19,507.86
17,685.75
15,836.23
13,882.61
12,052.17
10,062.63
8,153.74
6,127.18
4,137.48
2,084,18
08/08/2001
099-001-ECX
CITY OF REDLANDS
$ 1,500,000.00
3%
12
09/15/2001
06/30/2002
12/22/2002
PRINCIPAL
REDUCTION
83,567.85
119,461.76
121,142.17
122,964.28
124,813.80
126,767.42
128,597.86
130,587.40
132,496.29
134,522.85
136,512.55
138,565.77
UNPAID
PRINCIPAL
1,500,000.00
1,416,432.15
1,296,970.39
1,175,828.22
1,052,863.94
928,050.14
801,282.72
672,684.86
542,097.46
409,601.17
275,078.32
138,565.77
0.00
NOTE : THIS SCHEDULE IS ONLY AN ESTIMATE. WHEN YOUR PROJECT IS
COMPLETED, YOU WILL BE ISSUED A FINAL SCHEDULE BASED ON ACTUAL
DISBURSEMENT(S) AND COMPLETION DATE.
THIS AMORTIZATION SCHEDULE ASSUMES PAYMENTS OF ALL INSTALLMENTS
ARE MADE ON THEIR DUE DATES IN ACCORDANCE WITH THE TERMS .OF THE
PROMISSORY NOTE. ANY PAYMENT OF INSTALLMENT CONSIDERED TO HAVE
BEEN MADE LATE IN ACCORDANCE WITH THE TERMS OF THE PROMISSORY
NOTE AND ANY UNSCHEDULED PREPAYMENT WILL AFFECT ACCRUED INTEREST,
PRINCIPAL REDUCTION, UNPAID PRINCIPAL, AND TOTAL REPAYMENT.
PRINCIPAL AMOUNT: $ 1,500,000.00
LOAN NUMBER: 099-001-ECX
PROJECT TERM: 08/02/2001 - 06/30/2002
ECAA -- AB 29X ACCOUNT LOAN AGREEMENT
THIS AGREEMENT IS EFFECTIVE AS OF THE DATE BOTH PARTIES HAVE SIGNED THIS
AGREEMENT, IN THE STATE OF CALIFORNIA, BY AND BETWEEN THE STATE OF
CALIFORNIA, CALIFORNIA ENERGY COMMISSION, 1516 NINTH STREET, SACRAMENTO, CA
95814, HEREINAFTER "COMMISSION," AND CITY OF REDLANDS, MUNICIPAL WATER
DEPARTMENT, P.O. BOX 3005, REDLANDS, CA 92373, HEREINAFTER "BORROWER."
1. AUTHORITY
A. PURSUANT TO THE PURPOSES AUTHORIZED BY SECTION 25410, ET SEQ, OF
THE CALIFORNIA PUBLIC RESOURCES CODE, THE COMMISSION HAS APPROVED
BORROWER'S LOAN APPLICATION DATED July 17, 2001 , WHICH IS NOT
ATTACHED BUT IS EXPRESSLY INCORPORATED BY REFERENCE HEREIN.
B. SUBJECT TO THE TERMS, COVENANTS, AND CONDITIONS CONTAINED HEREIN,
AND THE ATTACHED BUDGET DETAIL TO THE EXTENT IT MODIFIES
BORROWER'S LOAN APPLICATION, THE COMMISSION SHALL MAKE A LOAN TO
BORROWER IN THE AMOUNT OF ONE MILLION FIVE HUNDRED THOUSAND
DOLLARS ($1,500,000.00) EVIDENCED BY A PROMISSORY NOTE FOR LOAN
NUMBER 099-001-ECX, ATTACHED HERETO AS EXHIBIT A.
2. GENERAL TERMS
A. THE BORROWER AGREES TO INDEMNIFY, DEFEND, AND SAVE HARMLESS THE
STATE, ITS OFFICERS, AGENTS, AND EMPLOYEES FROM ANY AND ALL
CLAIMS AND LOSSES ACCRUING OR RESULTING TO BORROWER AND TO ANY
AND ALL CONTRACTORS, SUBCONTRACTORS, MATERIALMEN, LABORERS, AND
ANY OTHER PERSON, FIRM, OR CORPORATION FURNISHING OR SUPPLYING
WORK, SERVICES, MATERIALS, OR SUPPLIES IN CONNECTION WITH THE
PERFORMANCE OF THIS AGREEMENT, AND FROM ANY AND ALL CLAIMS AND
LOSSES ACCRUING OR RESULTING TO ANY PERSON, FIRM, OR CORPORATION
WHO MAY BE INJURED OR DAMAGED BY THE BORROWER IN THE PERFORMANCE
OF THIS CONTRACT.
B. THE BORROWER, AND THE AGENTS AND EMPLOYEES OF BORROWER, IN THE
PERFORMANCE OF THIS AGREEMENT, SHALL ACT IN AN INDEPENDENT
CAPACITY AND NOT AS OFFICERS OR EMPLOYEES OR AGENTS OF THE STATE
OF CALIFORNIA.
C. WITHOUT THE WRITTEN CONSENT OF THE COMMISSION, THIS AGREEMENT IS
NOT ASSIGNABLE OR TRANSFERABLE BY BORROWER EITHER IN WHOLE OR IN
PART.
D. TIME IS OF THE ESSENCE IN THIS AGREEMENT. BORROWER IS REQUIRED
TO TAKE TIMELY ACTIONS WHICH, TAKEN COLLECTIVELY, MOVE TO
COMPLETION OF THE PURPOSE FOR WHICH THIS LOAN WAS AWARDED.
THE COMMISSION PROJECT MANAGER WILL PERIODICALLY EVALUATE THE
1
PROGRESS TOWARD COMPLETION. IF THE COMMISSION PROJECT MANAGER
DETERMINES THAT THE LOAN RECIPIENT IS NOT PROGRESSING TOWARD
COMPLETION WITHIN TWO (2) YEARS OF THE DATE THE LOAN DOCUMENTS
WERE SIGNED BY THE COMMISSION, THE COMMISSION PROJECT MANAGER
MAY, WITHOUT PENALTIES OR PREJUDICE TO ANY OF THE COMMISSION'S
REMEDIES, TERMINATE THIS AGREEMENT..
E. NO ALTERATION OR VARIATION OF THE TERMS OF THIS AGREEMENT SHALL
BE VALID UNLESS MADE IN WRITING AND SIGNED BY THE PARTIES HERETO,
AND NO ORAL UNDERSTANDING OR AGREEMENT NOT INCORPORATED HEREIN,
SHALL BE BINDING ON ANY OF THE PARTIES HERETO.
3. PURPOSE
THE BORROWER AGREES TO EXPEND ALL FUNDS ADVANCED PURSUANT TO THIS
AGREEMENT ONLY FOR THE PURPOSES AND IN THE AMOUNTS SET FORTH IN THE
ATTACHED BUDGET DETAIL. IN THE EVENT THE COMMISSION DETERMINES THAT
FUNDS HAVE BEEN EXPENDED WITHOUT PRIOR WRITTEN APPROVAL BY THE
COMMISSION FOR PURPOSES OTHER THAN THOSE SPECIFIED, THE FULL AMOUNT OF
THE LOAN, INCLUDING PRINCIPAL AND INTEREST, SHALL BE IMMEDIATELY DUE
AND PAYABLE.
4. LOAN DISBURSEMENT SCHEDULE
A. THE COMMISSION AGREES TO DISBURSE FUNDS TO THE BORROWER UPON THE
PROPER EXECUTION OF THE ATTACHED PROMISSORY NOTE AND ANY
APPROPRIATE SECURITY INSTRUMENTS, AND REQUIRED SUPPLEMENTAL
DOCUMENTS, INCLUDING INVOICES AS REQUIRED IN. PARAGRAPH C.
B. THIS PARAGRAPH APPLIES ONLY TO BORROWERS WHO HAVE RECEIVED
TECHNICAL ASSISTANCE OR A FEASIBILITY STUDY BY A CONSULTANT UNDER
CONTRACT TO THE COMMISSION AND ARE FINANCING THE TECHNICAL
ASSISTANCE OR STUDY REIMBURSEMENT THROUGH THIS LOAN. THE
COMMISSION WILL REIMBURSE ITSELF FROM THE BORROWER'S LOAN
PROCEEDS FOR THE TECHNICAL ASSISTANCE OR FEASIBILITY STUDY COST
WHICH WAS PROVIDED IN ACCORDANCE WITH THE SERVICES AGREEMENT,
DATED SUCH REIMBURSEMENT WILL OCCUR ON THE DATE
THE COMMISSION EXECUTES THIS LOAN AGREEMENT AND WILL BE EQUAL TO
C. EXCEPT FOR THE TECHNICAL ASSISTANCE OR FEASIBILITY STUDY COST
INDICATED IN B., LOAN FUNDS SHALL BE DISBURSED ON A REIMBURSEMENT
BASIS BASED ON INVOICES SUBMITTED BY BORROWER IN A FORM APPROVED
BY THE COMMISSION. BILLINGS MUST BE PROVIDED TO SUBSTANTIATE THE
REQUEST. COMMISSION STAFF WILL APPROVE INVOICES ONLY AFTER
VERIFYING REQUESTED AMOUNTS AGAINST BACKUP BILLINGS AND
DETERMINING EXPENSES ARE APPROPRIATE AND USED FOR THE PURPOSE OF
THE LOAN.
D. TEN PERCENT (10%) OF THE LOAN AMOUNT WILL BE WITHHELD AS
RETENTION UNTIL THE FINAL REPORT IS RECEIVED AND THE COMMISSION'S
PROJECT MANAGER DETERMINES THE PROJECT HAS BEEN SATISFACTORILY
COMPLETED.
- 2 -
E. AN ADVANCE OF UP TO TEN PERCENT (10%) OF THE LOAN BALANCE
(AFTER COMMISSION REIMBURSEMENT FOR THE TECHNICAL ASSISTANCE OR
FEASIBILITY STUDY COST, IF APPLICABLE) MAY BE REQUESTED AT THE
START OF THE PROJECT. SUBSEQUENT ADVANCES MAY BE ALLOWED WHEN
RECEIPT OF FUNDS ON A REIMBURSEMENT BASIS PRESENTS AN UNDUE
HARDSHIP TO THE BORROWER.
5. INTEREST
THE LOAN HEREIN SHALL BEAR SIMPLE INTEREST AT THE ANNUAL RATE SET
FORTH IN THE ATTACHED PROMISSORY NOTE ON THE PRINCIPAL BALANCE OF LOAN
FUNDS DISBURSED TO THE BORROWER. PAYMENT OF SAID INTEREST SHALL BE
DUE AT THE TIME OF REPAYMENT OF THE LOAN TO THE COMMISSION, AND
INTEREST SHALL ACCRUE FROM THE TIME OF DISBURSAL OF FUNDS TO THE
BORROWER UNTIL RECEIPT OF FULL REPAYMENT BY THE COMMISSION. INTEREST
ON COMMISSION REIMBURSEMENT FOR TECHNICAL ASSISTANCE OR THE
FEASIBILITY STUDY, IF APPLICABLE, SHALL ACCRUE FROM THE DATE THE
COMMISSION EXECUTES THIS LOAN AGREEMENT UNTIL RECEIPT OF FULL
REPAYMENT BY THE COMMISSION.
6. TERM
A. THE EFFECTIVE DATE OF THIS AGREEMENT SHALL BE THE LAST DATE OF
EXECUTION.
B. THE BORROWER AGREES TO COMPLETE PERFORMANCE OF ITS OBLIGATIONS
UNDER THIS AGREEMENT WITHIN THE PERIOD STATED IN THIS AGREEMENT.
7. REPAYMENT
ALL FUNDS ADVANCED HEREUNDER, TOGETHER WITH ALL INTEREST PAYABLE
THEREON, SHALL BE REPAID TO THE COMMISSION IN ACCORDANCE WITH THE
TERMS OF THE PROMISSORY NOTE.
8. PREPAYMENT
BORROWER SHALL HAVE THE RIGHT TO PREPAY ALL OR ANY PART OF THE AMOUNT
OF THIS LOAN AT ANY TIME WITHOUT PENALTY.
9. PROMISSORY NOTE
IN ORDER TO EVIDENCE ITS DEBT TO THE COMMISSION HEREUNDER, THE
BORROWER AGREES TO, CONTEMPORANEOUSLY WITH THE EXECUTION OF THIS
AGREEMENT, EXECUTE AND DELIVER TO THE COMMISSION A PROMISSORY NOTE.
10. SECURITY (APPLIES ONLY TO NONGOVERNMENTAL BORROWERS)
A. NONGOVERNMENTAL
DOLLARS ($25,000.
SPECIFIED IN THE
THAT DO NOT MEET
BORROWERS WITH A LOAN OF TWENTY-FIVE THOUSAND
00) OR MORE MUST MEET FINANCIAL REQUIREMENTS AS
LOAN APPLICATION PACKAGE. FOR THOSE BORROWERS
THE FINANCIAL REQUIREMENTS, THE COMMISSION WILL
- 3 -
REQUIRE SECURITY FOR A LOAN OF TWENTY-FIVE THOUSAND DOLLARS
($25,000.00) OR MORE. THE COMMISSION WILL REQUIRE EITHER: (1) AN
IRREVOCABLE LETTER OF CREDIT OR (2) A DEED OF TRUST ON THE
PROPERTY TO BE IMPROVED UNDER THE TERMS OF THIS AGREEMENT TO
SECURE THE ATTACHED PROMISSORY NOTE, WITH SAID DEED OF TRUST
NAMING THE STATE OF CALIFORNIA, CALIFORNIA ENERGY COMMISSION, AS
BENEFICIARY. BORROWER SHALL ALSO OBTAIN AND DELIVER A STANDARD
CLTA TITLE INSURANCE POLICY FOR THE SECURED PROPERTY, INSURING
THE COMMISSION'S INTEREST AS LENDER, AND A CURRENT MARKET VALUE
APPRAISAL OF SAID PROPERTY WITH VALUES SUPPORTED BY AVAILABLE
MARKET DATA WHICH HAS BEEN PREPARED BY A LICENSED APPRAISER.
B. FOR ALL NONGOVERNMENTAL LOANS SECURED BY A DEED OF TRUST, THE
BORROWER AGREES THAT IN THE EVENT IT SELLS, TRANSFERS, MORTGAGES,
DISPOSES OF, OR FURTHER ENCUMBERS THE SAID PROPERTY, OR ANY PART
THEREOF, WITHOUT THE PRIOR WRITTEN CONSENT OF THE COMMISSION,
THEN THE COMMISSION SHALL HAVE THE RIGHT, AT ITS OPTION, TO
DECLARE THE ENTIRE BALANCE OF THE UNPAID PRINCIPAL WITH UNPAID
INTEREST DUE THEREON, IMMEDIATELY DUE AND PAYABLE. CONSENT TO
ONE SUCH TRANSACTION SHALL NOT BE DEEMED TO BE A WAIVER OF THE
RIGHT TO REQUIRE CONSENT TO FUTURE OR SUCCESSIVE TRANSACTIONS.
11. ACCOUNTS
A. IF REQUESTED BY THE COMMISSION, THE BORROWER AGREES TO DEPOSIT
ALL FUNDS RECEIVED UNDER THIS AGREEMENT IN A SEGREGATED ACCOUNT
IN AN INSTITUTION WHOSE DEPOSITS ARE INSURED BY THE FEDERAL OR
THE STATE GOVERNMENT.
B. THE BORROWER FURTHER AGREES TO ESTABLISH ON ITS BOOKS A SEPARATE
ACCOUNT FOR THIS LOAN. THIS ACCOUNT SHALL BE MAINTAINED AS LONG
AS THE LOAN OBLIGATION REMAINS UNSATISFIED.
C. THE BORROWER FURTHER AGREES TO MAINTAIN RECORDS THAT ACCURATELY
AND FULLY SHOW THE DATE, AMOUNT, PURPOSE, AND PAYEE OF ALL
EXPENDITURES DRAWN ON SAID ACCOUNT.
D. THE BORROWER FURTHER AGREES TO UTILIZE A VOUCHER SYSTEM BY WHICH
ALL EXPENDITURES FROM SAID ACCOUNT WILL BE AUTHORIZED AND
AUTHENTICATED.
E. THE BORROWER FURTHER AGREES TO ALLOW THE COMMISSION OR ANY OTHER
AGENCY OF THE STATE OR THE FEDERAL GOVERNMENT, ON WRITTEN
REQUEST, TO HAVE REASONABLE ACCESS TO, AND THE RIGHT OF
INSPECTION OF, ALL RECORDS THAT PERTAIN TO SAID ACCOUNT. THE
BORROWER ALSO AGREES TO SUBMIT TO AN INDEPENDENT AUDIT, IF
REQUESTED BY THE COMMISSION, AT THE EXPENSE OF THE BORROWER.
- 4 -
F. THE BORROWER FURTHER AGREES TO MAINTAIN RECORDS FOR THREE (3)
YEARS FOLLOWING PROJECT COMPLETION SHOWING THE COST OF THE ENERGY
SAVED AS A RESULT OF IMPLEMENTING THE PROJECT FUNDED IN WHOLE OR
IN PART BY THIS LOAN. FOR EACH OF THE THREE (3) YEARS FOLLOWING
PROJECT COMPLETION, BORROWER SHALL COMPUTE THE COST OF THE ENERGY
SAVED BY IMPLEMENTING THE PROJECT FUNDED IN WHOLE OR IN PART BY
THIS LOAN AND SHALL SUBMIT ANNUAL REPORTS TO THE COMMISSION.
G. ALL INVOICES MUST BE SUBMITTED WITHIN SIXTY (60) DAYS OF PROJECT
COMPLETION.
12. BUDGET
A. SEMIANNUAL PAYMENTS DUE TO THE COMMISSION UNDER THIS AGREEMENT
SHALL BE MADE FROM SAVINGS IN ENERGY COSTS OR OTHER AVAILABLE
FUNDS AS THE BORROWER CHOOSES. IF BORROWER IS A COUNTY, CITY,
TOWN, TOWNSHIP, BOARD OF EDUCATION, OR SCHOOL DISTRICT, BORROWER
AGREES THAT THE AMOUNT OF THE SEMIANNUAL LOAN REPAYMENT SHALL NOT
BE RAISED BY THE LEVY OF ADDITIONAL TAXES AND SHALL NOT BE A
CHARGE AGAINST BORROWER'S GENERAL FUND, BUT SHALL BE OBTAINED
EITHER FROM ACTUAL SAVINGS IN ENERGY COSTS RESULTING FROM THE
SUBJECT ENERGY CONSERVATION PROJECTS OR OTHER AVAILABLE FUNDS AS
THE BORROWER CHOOSES.
B. ENERGY COST SAVINGS CALCULATIONS ARE BASED ON ENERGY USAGE AND
SERVING UTILITY RATES AT THE TIME OF THE ISSUANCE OF THIS LOAN.
CHANGES IN ENERGY USE AND RATE REDUCTIONS WHICH OCCUR AFTER
ISSUANCE OF THE LOAN WILL NOT AFFECT THE CALCULATED ENERGY
SAVINGS. THEREFORE, ALL FUNDS ADVANCED HEREUNDER, TOGETHER WITH
ALL INTEREST PAYABLE THEREON, SHALL BE REPAID TO THE COMMISSION
IN FULL AND SHALL NOT BE FORGIVEN DUE TO A CHANGE IN BORROWER'S
ENERGY USE OR A REDUCTION IN BORROWER'S ENERGY UTILITY RATES.
13. DEFAULT
A. IN THE EVENT THE BORROWER, FOR ANY REASON, IS UNABLE TO PROCEED
WITH THE PURPOSE OF THIS AGREEMENT, THE COMMISSION MAY DECLARE
THIS AGREEMENT TO HAVE BEEN BREACHED AND BE RELEASED FROM ANY
FURTHER PERFORMANCE HEREUNDER.
B. IN THE EVENT OF ANY DEFAULT OR BREACH OF THE AGREEMENT BY THE
BORROWER, THE COMMISSION, WITHOUT LIMITING ANY OF ITS OTHER LEGAL
RIGHTS OR REMEDIES, MAY DECLARE THE PROMISSORY NOTE EVIDENCING
THE LOAN TO BE IMMEDIATELY DUE AND PAYABLE.
14. REPORTING
A. PROGRESS REPORTS ARE DUE SEMIANNUALLY UNTIL PROJECT COMPLETION.
REPORTS ARE DUE JANUARY 31 (FOR THE JULY 1 - DECEMBER 31 PERIOD)
AND JULY 1 (FOR THE JANUARY 1 - JUNE 30 PERIOD).
B. A FINAL REPORT IS DUE NO LATER THAN 60 DAYS AFTER PROJECT
COMPLETION.
- 5 -
C. A PROGRESS REPORT MUST BE SUBMITTED WITH EACH REQUEST (INVOICE)
FOR LOAN FUNDS.
D. IF REQUESTED BY THE COMMISSION, BORROWER SHALL SUBMIT, WITHIN
TEN (10) DAYS OF THE COMMISSION'S WRITTEN REQUEST, A STATUS
REPORT ON ITS ACTIVITIES TO DATE, PURSUANT TO THIS AGREEMENT.
E. REPORTS SHALL BE IN A FORMAT AS DETERMINED BY THE COMMISSION.
15. NONDISCRIMINATION
A. DURING THE PERFORMANCE OF THIS AGREEMENT, THE BORROWER AND ITS
CONTRACTORS AND SUBCONTRACTORS SHALL NOT DENY THE AGREEMENT'S
BENEFITS TO ANY PERSON ON THE BASIS OF RELIGION, COLOR, ETHNIC
GROUP IDENTIFICATION, SEX, AGE, PHYSICAL OR MENTAL DISABILITY,
NOR SHALL THEY DISCRIMINATE UNLAWFULLY AGAINST ANY EMPLOYEE OR
APPLICANT FOR EMPLOYMENT BECAUSE OF RACE, RELIGION, COLOR,
NATIONAL ORIGIN, ANCESTRY, PHYSICAL HANDICAP, MENTAL DISABILITY,
MEDICAL CONDITION, MARITAL STATUS, AGE, OR SEX. THE BORROWER
SHALL INSURE THAT THE EVALUATION AND TREATMENT OF EMPLOYEES AND
APPLICANTS FOR EMPLOYMENT ARE FREE OF SUCH DISCRIMINATION.
B. THE BORROWER SHALL COMPLY WITH THE PROVISIONS OF THE FAIR
EMPLOYMENT AND HOUSING ACT (GOVERNMENT CODE, SECTION 12900 ET
SEQ.), THE REGULATIONS PROMULGATED THEREUNDER (CALIFORNIA CODE OF
REGULATIONS, TITLE 2, SECTION 7285.0 ET SEQ.), THE PROVISIONS OF
ARTICLE 9.5, CHAPTER 1, PART 1, DIVISION 3, TITLE 2, OF THE
GOVERNMENT CODE (GOVERNMENT CODE, SECTIONS 11135 - 11139.5), AND
THE REGULATIONS OR STANDARDS ADOPTED BY THE AWARDING STATE AGENCY
TO IMPLEMENT SUCH ARTICLE.
C. THE BORROWER AND ITS CONTRACTORS AND SUBCONTRACTORS SHALL GIVE
WRITTEN NOTICE OF THEIR OBLIGATIONS UNDER THIS CLAUSE TO LABOR
ORGANIZATIONS WITH WHICH THEY HAVE A COLLECTIVE BARGAINING OR
OTHER AGREEMENT.
D. THE BORROWER SHALL INCLUDE THE NONDISCRIMINATION AND COMPLIANCE
PROVISIONS OF THIS CLAUSE IN ALL CONTRACTS AND SUBCONTRACTS TO
PERFORM WORK UNDER THIS AGREEMENT.
IN WITNESS WHEREOF, THIS AGREEMENT HAS BEEN EXECUTED BY THE PARTIES HERETO.
BORROWER (IF OTHER THAN AN
INDIVIDUAL, STATE WHETHER A
CORPORATION, PARTNERSHIP, ETC.)
STATE OF CALIFORNIA —
CALIFORNIA-ENGY COMMISSION
BY (A'UTH
RIZED SIGNATURE)
CHIEF, FISCAL MANAGEMENT BRANCH
TITLE
DATE,
Gary G. Phelps, Municipal Utilities Director
TITLE
September 4, 2001
DATE
MAIL ADDRESS: CITY OF REDLANDS
MUNICIPAL WATER DEPARTMENT
P.O. BOX 3005
REDLANDS, CA 92373
AMOUNT ENCUMBERED:
$ 1,500,000.00 .
FISCAL YEAR: FUND—ORG 033
:ENERGY CONSERVATION
2001-2002 :ASSISTANCE ACCOUNT
APPROPRIATION—ORG C-103
3360-605-0033, CH. 8/01
ECAA -- AB 29X -- FY 2000
$1,500,000.00
. LOAN NO.
•
•
099-001—ECX
: LINE ITEM—ORG
: ALLOTMENT
: 4400-626-44010
I HEREBY CERTIFY UPON MY OWN PERSONAL KNOWLEDGE THAT BUDGETED FUNDS ARE
AVAILABLE FOR THE PERIOD AND PURPOSE OF THE EXPENDITURE STATED ABOVE.
SIGNATURE OF ACCOUNTING OFFICER
DATE
— 7 —
GLNUMBER :
GRANT NO.:
RECIPIENT:
INSTITUTION:
BUILDING:
BUILDING TYPE:
ECM CODE:
CEC LOAN BUDGET:
CEC GRANT BUDGET:
TOTAL CEC BUDGET:
FED MATCH:
RECIPIENT MATCH:
TOTAL BUDGET:
BUDGET DETAIL
099-001-ECX
INN-01L-009
CITY OF REDLANDS
RCX - CONV OTH
1,500,000.00
242,500.00
1,742,500.00
0.00
7,500.00
1,750,000.00
SEQUENCE NO.: 1545-1
REN
SENATE DIST: 31
ASSEMBLY DIST: 63
PROGRAM: ECAA AB 29X
FINAL COST: 0.00
EXHIBIT A
PROMISSORY NOTE
PRINCIPAL AMOUNT: $ 1,500,000.00
LOAN NUMBER: 099-001-ECX
1. FOR VALUE RECEIVED, THE UNDERSIGNED, CITY OF REDLANDS (HEREINAFTER
REFERRED TO AS THE "BORROWER"), PROMISES TO PAY TO THE ORDER OF THE
STATE OF CALIFORNIA, CALIFORNIA ENERGY COMMISSION (HEREINAFTER
REFERRED TO AS THE "COMMISSION"), AT ITS PRINCIPAL PLACE OF BUSINESS
AT 1516 NINTH STREET, SACRAMENTO, CALIFORNIA 95814, OR AT SUCH OTHER
PLACE AS THE COMMISSION MAY DESIGNATE, THE PRINCIPAL SUM OF ONE
MILLION FIVE HUNDRED THOUSAND DOLLARS ($1,500,000.00) OR SUCH LESSER
AMOUNT AS SHALL EQUAL THE AGGREGATE AMOUNT DISBURSED TO THE BORROWER
BY THE COMMISSION, PLUS THE AMOUNT OF COMMISSION REIMBURSEMENT FOR
TECHNICAL ASSISTANCE OR FEASIBILITY STUDY COST, IF APPLICABLE,
TOGETHER WITH INTEREST ON THE UNPAID PRINCIPAL COMPUTED FROM THE DATE
OF EACH DISBURSEMENT TO THE BORROWER UNTIL REPAID BY THE BORROWER AT
THE INTEREST RATE OF THREE PERCENT (3%) PER ANNUM. PRINCIPAL AND
INTEREST IS DUE AND PAYABLE IN SEMIANNUAL INSTALLMENTS, BEGINNING ON
OR BEFORE DECEMBER 22 OF THE FISCAL YEAR FOLLOWING THE YEAR IN WHICH
THE PROJECT IS COMPLETED AND CONTINUING THEREAFTER UNTIL SAID
PRINCIPAL AND INTEREST HAVE BEEN PAID IN FULL.
2. PAYMENT OF ANY SCHEDULED INSTALLMENT RECEIVED WITHIN THIRTY (30) DAYS
AFTER ITS DUE DATE SHALL BE CONSIDERED TO HAVE BEEN RECEIVED ON ITS
DUE DATE AND SHALL BE FIRST APPLIED TO ACCRUED INTEREST FROM THE DATE
OF DISBURSAL TO THE BORROWER AND THE BALANCE, IF ANY, TO PRINCIPAL.
PAYMENT OF ANY SCHEDULED INSTALLMENT RECEIVED MORE THAN THIRTY (30)
DAYS AFTER ITS DUE DATE BUT BEFORE THE NEXT BILLING SHALL BE
CONSIDERED LATE, AND INTEREST ON THE UNPAID PRINCIPAL SHALL ACCRUE
FROM DATE OF DISBURSAL TO THE BORROWER THROUGH THE ACTUAL PAYMENT
DATE. HOWEVER, PAYMENT OF ANY SCHEDULED INSTALLMENT RECEIVED AFTER A
SUBSEQUENT BILLING SHALL BE CONSIDERED OVERDUE, AND INTEREST SHALL
ACCRUE ON THE UNPAID PRINCIPAL FROM DATE OF DISBURSAL TO THE BORROWER
THROUGH THE SUBSEQUENT BILLING DUE DATE OR ACTUAL PAYMENT DATE,
WHICHEVER IS LATER. THE BORROWER MAY PREPAY THIS NOTE IN FULL OR IN
PART, WITHOUT PENALTY, BUT ANY SUCH PREPAYMENT SHALL BE FIRST APPLIED
TO PRINCIPAL AND THE BALANCE, IF ANY, TO ACCRUED INTEREST.
3. IF ANY INSTALLMENT IS NOT PAID WITHIN THIRTY (30) DAYS AFTER ITS DUE
DATE, THE COMMISSION, AT ITS OPTION, MAY REQUIRE THE BORROWER TO PAY A
LATE CHARGE EQUAL TO FIVE PERCENT (5%) OF THE AMOUNT OF THE
INSTALLMENT OR FIVE DOLLARS ($5.00), WHICHEVER IS GREATER.
4. ON THE OCCURRENCE OF ANY EVENT OF DEFAULT, THE COMMISSION, AT ITS
SOLE ELECTION, MAY DECLARE ALL OR ANY PORTION OF THE PRINCIPAL AND
ACCRUED INTEREST ON THIS NOTE TO BE IMMEDIATELY DUE AND PAYABLE AND
MAY PROCEED AT ONCE WITHOUT FURTHER NOTICE TO ENFORCE THIS NOTE
ACCORDING TO LAW.
8
5. EACH OF THE FOLLOWING OCCURRENCES SHALL CONSTITUTE AN EVENT OF
DEFAULT:
A. FAILURE OF THE BORROWER TO REPAY ANY PRINCIPAL OR INTEREST WHEN
DUE UNDER THE TERMS OF THIS NOTE;
B. TERMINATION OF SAID LOAN AGREEMENT PURSUANT TO THE TERMS THEREOF
OR BREACH BY THE BORROWER OF ANY TERMS OF SAID LOAN AGREEMENT;
C. FAILURE OF THE BORROWER TO UNDERTAKE IN A TIMELY WAY THE EXPRESS
AND IMPLIED ACTIVITIES FOR WHICH SAID LOAN AGREEMENT HAS BEEN
EXECUTED;
D. FAILURE OF THE BORROWER TO OBTAIN PRIOR WRITTEN COMMISSION
APPROVAL BEFORE UNDERTAKING A CHANGE IN THE SCOPE OF THE
ACTIVITIES FOR WHICH SAID LOAN AGREEMENT HAS BEEN EXECUTED; OR
E. OCCURRENCE OF (1) THE BORROWER BECOMING INSOLVENT OR BANKRUPT OR
BEING UNABLE OR ADMITTING IN WRITING ITS INABILITY TO PAY ITS
DEBTS AS THEY MATURE OR MAKING A GENERAL ASSIGNMENT FOR THE
BENEFIT OF OR ENTERING INTO ANY COMPOSITION OR ARRANGEMENT WITH
CREDITORS; (2) PROCEEDINGS FOR THE APPOINTMENT OF A RECEIVER,
TRUSTEE, OR LIQUIDATOR OF THE ASSETS OF THE BORROWER OR A
SUBSTANTIAL PART THEREOF, BEING AUTHORIZED OR INSTITUTED BY OR
AGAINST THE BORROWER; OR (3) PROCEEDINGS UNDER ANY BANKRUPTCY,
REORGANIZATION, READJUSTMENT OF DEBT, INSOLVENCY, DISSOLUTION,
LIQUIDATION OR OTHER SIMILAR LAW, OR ANY JURISDICTION BEING
AUTHORIZED OR INSTITUTED AGAINST THE BORROWER.
6. NO DELAY OR FAILURE OF THE COMMISSION IN THE EXERCISE OF ANY RIGHT OR
REMEDY HEREUNDER OR UNDER ANY OTHER AGREEMENT, WHICH SECURES OR IS
RELATED HERETO, SHALL AFFECT ANY SUCH RIGHT OR REMEDY, AND NO SINGLE
OR PARTIAL EXERCISE OF ANY SUCH RIGHT OR REMEDY SHALL PRECLUDE ANY
FURTHER EXERCISE THEREOF, AND NO ACTION TAKEN OR OMITTED BY THE
COMMISSION SHALL BE DEEMED A WAIVER OF ANY SUCH RIGHT OR REMEDY.
7. ANY NOTICE TO THE BORROWER PROVIDED FOR IN THIS NOTE SHALL BE GIVEN BY
MAILING SUCH NOTICE BY CERTIFIED MAIL, RETURN RECEIPT REQUESTED,
ADDRESSED TO THE BORROWER AT THE ADDRESS STATED IN THE LOAN AGREEMENT,
OR TO SUCH OTHER ADDRESS AS THE BORROWER MAY DESIGNATE BY NOTICE TO
THE COMMISSION. ANY NOTICE TO THE COMMISSION SHALL BE GIVEN BY
MAILING SUCH NOTICE BY CERTIFIED MAIL, RETURN RECEIPT REQUESTED, TO
THE COMMISSION AT THE ADDRESS STATED IN THE LOAN AGREEMENT, OR AT SUCH
OTHER ADDRESS AS MAY HAVE BEEN DESIGNATED BY NOTICE TO THE BORROWER.
8. IF SUIT IS BROUGHT TO COLLECT ANY PART OF THIS NOTE, THE COMMISSION
SHALL BE ENTITLED TO COLLECT ALL REASONABLE COSTS AND EXPENSES OF SAID
SUIT, INCLUDING REASONABLE ATTORNEY'S FEES.
- 9 -
9. THIS NOTE SHALL BE BINDING UPON THE BORROWER AND ITS SUCCESSORS AND
ASSIGNS AND UPON THE COMMISSION AND ITS SUCCESSORS AND ASSIGNS.
10. THIS NOTE SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH THE LAWS
OF THE STATE OF CALIFORNIA.
BY (AUTHORIZED'JS GNATUR,E
Gary G. Phelps, Municipal Utilities Director
TITLE
September 4, 2001
DATE
ENERGY EFFICIENCY COMMITTEE
AB 29X LOAN APPROVAL SHEET
Loan program element: Loans and Grants Through ECAA
Total project cost: $1.75 million Expected Completion Date: 06/30/2002
Loan amount: $1.5 million Peak demand saving: 970 kW $/kW: NA
Contact Person
Applicant name
and Address
Douglas Headrick, Chief of Water Resources
City of Redlands — Municipal Water Department
P. O. Box 3005
Project type
and description
The city is seeking funds from the Energy Conservation Assistance Account
to install a 0.97 MW cogeneration facility using landfill gas (LFG). The city -
owned landfill is currently collecting about 425 standard cubic feet per minute
of LFG, equivalent to 10 million Btu/hour. The city proposes to pipe this gas
to its neighboring wastewater treatment plant where it will be used in an
internal combustion generator designed for LFG. The resulting electricity
and waste heat will be at the wastewater treatment plant. The average
electrical load of the wastewater treatment facility is about 550 kW. Excess
electricity produced will be sold to the utility grid. The city anticipates that
between 2002 and 2003, about 30-40 percent of the electricity will be sold to
the utility grid. After 2003, the wastewater treatment facility will have
increased power requirements due to the expansion to tertiary wastewater
treatment. The anticipated electrical load in 2003 is expected to be between
1.2 to 1.4 MW, thus using all of the electricity from the cogeneration plant.
The recommended project meets the requirements of the loan program and
Name
Phone #
Signature
Date
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�(2,70/
6/3-/af
Originator
g
Virginia Lew
g
4-3838
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Supervisor
Daryl Mills
4-5070
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Office Manager
Mike Sloss
4-4654
f
t
:NO/
Deputy Director
Scott Matthews
4-5013
Commissioner Pernell
{ } Approve
Commissioner Rosenfeld
{ } Approve
{ } Disapprove
04)— 2)5.k
Date: %;��7
{ } Need more information
Date;
{ } Disapprove { } Need more information
RESOLUTION NO. 5928
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
REDLANDS FOR THE
ENERGY EFFICIENCY LOW INTEREST LOAN PROGRAM
WHEREAS, the California Energy Commission provides loans to schools, hospitals,
local governments, special districts, and public care institutions to finance energy efficiency
improvements:
NOW, THEREFORE, BE IT RESOLVED, that the City Council authorizes the City of
Redlands to apply for an energy efficiency loan from the California Energy Commission to
implement the Electricity Cogeneration Facility to be located at the City's Wastewater
Treatment Plant.
BE IT ALSO RESOLVED, that if recommended for funding by the California Energy
Commission, the City Council authorizes the City of Redlands to accept a loan up to
$1,800,000.
BE IT ALSO RESOLVED, that the amount of the loan will be paid in full, plus interest,
under the terms and conditions of the Loan Agreement and Promissory Note of the California
Energy Commission.
BE IT FURTHER RESOLVED, that the Municipal Utilities Director is hereby authorized
and empowered to execute in the name of the City of Redlands all necessary documents to
implement and carry out the purpose of this resolution, and to undertake all actions necessary to
complete the energy efficiency project.
ADOPTED, SIGNED AND APPROVED this 17th day of July, 2001.
ATTEST:
LO�I7� POYZE
Cit Clerk
- 12 -
PAT GILBREATH
Mayor of the City of Redlands
099-001-ECX
Special Conditions for ECAA Loans
1. Incentives
A. In consideration for providing the State of California early peak load energy use
reduction, recipients may be eligible for incentives offered by the Energy
Commission. The Commission has set aside a total of $3 million to fund two
incentives: the Early Project Completion Incentive (EPCI) and Technical
Assistance Completion Incentive (TACI). Recipients will be eligible for one or
both incentives if all the following conditions are met:
1) Recipients conform to the eligibility requirements specified in the EPCI
and TACI sections below.
2) All projects in the loan agreement are completed and operational prior to
May 1, 2002 and are complete to the satisfaction of the Energy
Commission project manager.
3) A Certificate of Project Completion Form is completed and submitted to
the Energy Commission within 10 working days of project completion.
4) A final invoice for project expenses is submitted and approved by the
Energy Commission.
5) A final report is submitted and approved by the Energy Commission.
B. Incentives will be provided on a first -come, first -served basis, based on the date
the Commission receives all of the following:
1) A signed Certificate of Project Completion (due within 10 working days
of project completion).
2) A final invoice.
3) A final report.
If the Certificate of Project Completion Form is submitted after 10 working days
of project completion, the date used for determining the incentive amount will be
the date that the Energy Commission receives all the items listed in item 2.B.
Incentives are available until all incentive funds have been disbursed or May 1,
2002, whichever occurs first.
The Commission project manager may conduct a site visit to verify project
completion, or contact the recipient, as needed, to get clarification or request
additional information regarding the project.
Although all final project invoices and reports must be received by the Energy
Commission within 60 days after project completion, Recipients are strongly
Special Conditions Page 1
099-001-ECX
encouraged to submit these documents as soon as possible in order to increase
their chances of receiving the incentives, The incentives will be calculated only
after the final invoice and final report have been received and approved by the
Commission and only if there are incentive funds available at the time the
Commission receives the final invoice and final report. Incentive(s) will be
applied against the outstanding loan principal incurred under this loan agreement.
The Commission will provide the recipient with a final loan amortization
schedule based on any incentives applied. The following formula is used to
determine the final principal financed:
Final Principal Financed = Loan Funds Drawn Down — EPCI — TACI
The recipient is responsible for paying all accrued interest incurred from the date
the loan funds are drawn until receipt of full repayment by the Commission.
C. Early Project Completion Incentive: To be eligible for the EPCI, all projects in
the loan agreement must be completed, installed and operational by May 1, 2002.
There will be no incentives of any amount unless all projects are completed on or
before May 1, 2002. Projects ineligible for the EPCI include:
1) Light emitting diode traffic signal projects receiving incentives from
Pacific Gas and Electric, Southern California Edison or San Diego Gas
and Electric Companies.
2) Energy audits/feasibility studies funded by themselves without any project
funding.
3) Projects that are already receiving any utility and any other Energy
Commission incentive for early project completion.
4) Projects already receiving utility or other incentives that total 50 percent
or more of the project cost.
The EPCI will be calculated using only one of the following percentages.
EPCI
Completion Date of All Projects
15% x loan funds drawn
On or before July 15, 2001
10% x loan funds drawn
On or before September 1, 2001
5% x loan funds drawn
On or before December 31, 2001
3% x loan funds drawn
On or before May 1, 2002
If the Certificate of Project Completion form is not received by the Commission
within 10 working days of project completion, the applicable EPCI incentive
amount will be based on the date the Commission receives all items specified in
item 2.B.
Special Conditions
Page 2
099-001-ECX
D. Technical Assistance Completion Incentive: To be eligible for the TACI, all the
following requirements must be met:
1) The recipient must be eligible to receive the EPCI.
2) The audit/study must be completed after May 1, 2001, and prepared by a
consultant hired by the recipient (Audits/studies prepared by the
recipient's staff or the Energy Commission are ineligible for the TACT).
3) The audit/study must follow the Commission's Guide to Preparing
Feasibility Studies for Energy Efficiency Projects' , publication number
400-00-002.
The Commission approves a loan for the project(s) identified in the
study/audit.
All loan -funded projects identified in the study must be installed and
operating by May 1, 2002.
The TACI amount will be equal to the applicable EPCI or 50 percent of the
audit/study cost, whichever is less.
2. Program Evaluation, Project Monitoring and Verification
The Commission will audit recipients to verify compliance with the loan agreement and to
measure and verify energy savings and/or demand reduction. Upon written request from the
Commission, the recipient agrees to:
A. Provide the Commission or its agent detailed documentation of all expenses.
B. Allow the Commission or its agent to have reasonable access to facilities during and
after the construction period.
C. Provide the Commission or its agent access to records,
D. Allow the Commission or its agent to collect data needed to measure and verify
energy and/or demand reductions. This may include but is not limited to utility bills,
metering data, facility equipment surveys, information on operational practices (e.g.,
operational schedules) and site occupancy levels.
E. Allow the Commission or its agent access to install, read and remove electricity
meters and other monitoring equipment for a period of up to two years. Resulting
data shall become the property of the Energy Commission with no restrictions on its
use.
Can be downloaded at http://www.energv.ca.gov/reports/2000-03-20 400-00-002.PDF or call 916-654-
4008
Special Conditions Page 3
099-001-ECX
F. Provide the Commission or its agent with data from a period prior to the start of the
project as necessary to establish baselines.
G. Allow the Commission or its agent access to and the right of inspection of all
records that pertain to the project and to the recipient's energy use during the term of
the agreement and for a period of three years thereafter,
H. Allow the Commission or its agent access to drawings in order to evaluate project
design.
I. Permit the Commission to publicize without restriction the results of the project in a
variety of formats and media.
J. Provide the Commission or its agent the information contained in the following
web site:
http://www.energy.ca.gov/pealsload/documents/overall requirements.html
Special Conditions Page 4
Loan - Electricity Cogeneration Facility - On motion of Councilmember
George, seconded by Councilmember Freedman, the City Council
unanimously approved a loan agreement and promissory note for
$1,500,000.00 with the California Energy Commission for the Innovative
Peak Load Reduction Program for the electricity cogeneration facility and
directed the Municipal Utilities Director to execute the documents as the
authorized party for the loan in accordance with City Council Resolution
No. 5928.
Agreement - Electricity Cogeneration Facility - On motion of Councilmember
George, seconded by Councilmember Freedman, the City Council unanimously
approved an agreement with the Southern California Edison Company to
perform a combined system impact study and facilities study in support of the
electricity cogeneration facility and authorized the Mayor and City Clerk to sign
the contract on behalf of the City.
Agreement - AB 939 Annual Report - On motion of Councilmember George,
seconded by Councilmember Freedman, the City Council unanimously
approved an agreement with John C. Davis to furnish consulting services for the
preparation and submission of the 2000 California Integrated Waste
Management Board Annual Report.
Stack Gas Analyzer - Electricity Cogeneration Facility - On motion of
Councilmember George, seconded by Councilmember Freedman, the City
Council unanimously approved the purchase of a stack gas analyzer from
Horiba Instruments, Inc. in the amount of $52,500.00 for use at the electricity
cogeneration facility.
Mutual Water Company Stock Purchase - Mayor Gilbreath left the City Council
Chambers due to a potential conflict of interest; Mayor Pro Tem George
conducted the meeting on this item. On motion of Councilmember Haws,
seconded by Councilmember Freedman, the City Council approved the purchase
of five shares of Lugonia Water Company stock from Daun Orr for a total price
of $6,380.00 by AYE votes of all present.
Resolution No. 5947 - Recycled/Non-Potable Water Study - On motion of
Councilmember George, seconded by Councilmember Freedman, the City
Council unanimously adopted Resolution No. 5947, a resolution of the City
Council of the City of Redlands authorizing the submission of a grant
application to the United States Bureau of Reclamation for a recycled/non-
potable water demand and market study and authorized the Municipal Utilities
Director to sign the grant documents.
Agreement - Recycled Water Project - On motion of Councilmember George,
seconded by Councilmember Freedman, the City Council unanimously
approved and authorized execution of Task Order No. 2 (Amendment No. 2) of
September 4, 2001
Page 3