Resolution 2702-99
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RESOLUTION NO. 2702-99
A RESOLUTION OF THE BOARD OF DIRECTORS
OF THE SOUTH TAHOE PUBLIC UTILITY DISTRICT
CONCERNING THE DEVELOPMENT AND IMPLEMENTATION
OF ENERGY CONSERVATION MEASURES
WHEREAS, the South Tahoe Public Utility District (District) uses significant quantities
of electricity for operation ofthe District's facilities including, but not limited to, lighting, pumps,
and other equipment; and
WHEREAS, Government Code ~ 4217.10, et seq., provides that the District may enter
into an energy service contract and a facility ground lease on such terms as the District's Board of
Directors determines are in the best interest of the District; and
WHEREAS, Government Code ~ 4217.10 provides that the provisions of Government
Code ~ 4217.10, et seq" shall be construed to provide the greatest possible flexibility to the
District in structuring agreements entered into pursuant to these provisions so that economic
benefits may be maximized and financing and other costs associated with the design and
construction of alternate energy projects may be minimized; and
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WHEREAS, the District and e-three, a Sierra Pacific Resource Corporation, (e-three)
entered into a Letter oflntent dated April 17, 1998 for the purpose of retaining e-three to perform
a Detailed Energy Study (Study) ofthe District's facilities; and
WHEREAS, the results of the Study confirm that the District will reduce its electrical
costs by the implementation of the energy conservation measures identified in the Study; and
WHEREAS, the District and e-three have negotiated the terms for a Guaranteed Energy
Services Agreement for the implementation of the energy conservation measures identified in the
Study; and
WHEREAS, the District has given public notice at least two weeks in advance of the
regularly scheduled public hearing at which the District will consider authorizing the District to
enter into the Guaranteed Energy Services Agreement; and
WHEREAS, the Board of Directors of the District has conducted a public hearing in
accordance with the public notice and heard and considered all public comments.
NOW, THEREFORE, BE IT RESOLVED AS FOLLOWS:
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1. The anticipated cost to the District of electrical energy conservation measures
provided under the Guaranteed Energy Services Agreement will be less than the anticipated=marginal cost to the District for electrical energy that would have been consumed by the District
in the absence of those measures.
Resolution No. 2702-99
Page 2
\.,., 2. The difference, if any, between the fair rental value for the property subject to a
lease and the agreed rent is anticipated to be offset by other benefits provided under the
Guaranteed Energy Services Agreement since the District has elected not lease any facilities to e-
three but, instead, pay the entire cost of the energy conservation measures in advance from funds
already budgeted for this purpose.
3. The District's payment of the entire cost of the energy conservation measures from
currently budgeted funds, rather than entering into a lease, will reduce the total cost of the energy
conservation measures to the District and, as a result, further benefit the District.
4. The terms and conditions of the Guaranteed Energy Services Agreement are in the
best interests of the District.
5. The Board of Directors of the District approves the Guaranteed Energy Services
Agreement and authorizes the General Manager to sign the Guaranteed Energy Services
Agreement, subject to final review and approval by legal counse~ and take any additional
action(s) necessary and appropriate to implement this Resolution.
6. This Resolution shall take effect immediately.
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WE, THE UNDERSIGNED, do hereby certify that the above and foregoing Resolution
was duly and regularly adopted and passed by the Board of Directors of the South Tahoe Public
Utility District at a regular meeting duly held on the 7th day of October, 1999, by the following
vote:
AYES: Directors Wallace, Strohm, Jones, Gochnauer, Mosbacher.
NOES: None
ABSENT: None
ATTEST:
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Zi"s R. Jones, L'nl ofthe Board
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Kathy Sharp. lerk ofthe Bo~d and
Ex-Officio Secretary to Board of Directors
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