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HomeMy WebLinkAbout29- Public Works i ORIGINAL CITY OF SAN BERNARDINO -REQUEST FOR COUNCIL ACTION From: Randy Kuettle, Acting Subject: Director of Public Works Resolution of the Mayor and Common Council of the City of San Bernardino authorizing the execution of finance Dept: Public Works agreements with the Southern California Edison Company for financing of energy efficiency projects at various City Date: August 4, 2010 buildings. M/CC Meeting Date: September 7, 2010 Synopsis of Previous Council Action: None Recommended Motion: 1. Adopt Resolution ;dy Kuettle, Acting Director of Public Works Contact person: Tony Frossard Phone: 384-5244 Supporting data attached: Staff Report,Resolution Ward(s): all FUNDING REQUIREMENTS: Amount: 0 Source:: 0 1,u Charles E. McNeely y City Manager Council Notes: oaoio - 301y J` Agenda Item No. ,')Cf-07-24/ 6 CITY OF SAN BERNARDINO — REQUEST FOR COUNCIL ACTION Staff Report SUBJECT Resolution of the Mayor and Common Council of the City of San Bernardino authorizing the execution of finance agreements with the Southern California Edison Company for financing of energy efficiency projects at various City buildings. BACKGROUND On August 2, 2010, the Southern California Edison Company made funds available to government agencies and businesses at a zero percent interest for energy efficiency projects. The program, known as On-Bill Financing, provides capital for agencies to fund energy efficiency projects. These projects will benefit Edison by reducing the demand for electricity during peak usage and benefit the customer by reducing energy consumption and, ultimately,the electric bill. The On-Bill Financing program allows borrowers to repay the loan with the savings from their electric bill; after an energy efficient project is completed, the electric bill remains the same and the savings from the reduction in energy is applied towards the loan. Once the loan is paid off, the City of San Bernardino will save on electrical costs. Each project yields a different amount of electrical savings per year. Working with a contractor, staff has identified sixteen (16) projects that qualify for the On-Bill Financing program. The total cost to retrofit all 16 projects is approximately $230,000. However, the City will receive a rebate of approximately $27,000, which will decrease the total project costs. The total allotment of the On-bill Financing program is $250,000. Therefore, staff will have the ability to include additional projects. Once a project is completed, it will take approximately 3-5 years before the City pays off the loan, however, the City will start saving on energy costs every year thereafter. An example project is Fire Station 221: the annual electric bill is $29,400, the energy efficiency project cost is $46,515.25, the Edison rebate is $9,316.86, the total project cost to be financed is $37,198.39 the calculated annual saving is $10,913.41,the calculated payback period is 3.54 years. On Wednesday, August 25, 2010, the Public Works Department presented the Energy Efficiency opportunity to the Ways & Means Committee (Committee) and they recommended that we take advantage of this opportunity in order to save on energy costs in the future. Since each project needs a separate loan, staff recommends that the City Manager approve all current and future On- Bill Finance energy efficiency projects. FINANCIAL IMPACT The total estimated project cost for the lighting retrofits is $230,000, which will be financed by the Edison On-Bill Financing. There will be no immediate cost to the City, as debt service will be paid through energy savings. See the attached summary of projects for information regarding the locations, annual electricity cost, individual project costs Edison rebates, costs to be financed, calculated annual savings, and calculated payback period (Attachment 2). RECOMMENDATION Adopt Resolution. CITYOF SAN BERNARDINO INTEROFFICE MEMORANDUM PUBLIC WORKS DEPARTMENT To: Charles E. McNeely, City Manager FROM: t Randy Kuettle, Acting Public Works Director DATE: August 31, 2010 SUBJECT: Southern California Edison Company - Energy Efficiency Projects Copies: Tony Frossard, Project Manager On August 2, 2010, the Southern California Edison Company made funds available to government agencies and businesses at a zero percent interest for energy efficiency projects. The program, known as On-Bill Financing, provides capital for agencies to fund energy efficiency projects. These types of projects benefit both Edison and the City by reducing electrical demands and costs. The On-Bill Financing program allows borrowers to repay the loan with the savings from their electric bill; after an energy efficient project is completed, the electric bill remains the same and the savings from the reduction in energy is applied towards the loan. Once the loan is paid off, the City of San Bernardino will save on electrical costs for that project. Staff has identified sixteen (16) projects that qualify for the On-Bill Financing program. The total cost to retrofit all 16 projects is approximately $230,000. However, the City will receive rebated of approximately $27,000, which will decrease the total project costs. The total allotment of the On-bill Financing program is $250,000. Therefore, staff will have the ability to include additional projects. Once a project is completed, it will take approximately 3-5 years before the City pays off the loan but will start saving on energy costs every year thereafter. On Wednesday, August 25, 2010, the Public Works Department presented the Energy Efficiency opportunity to the Ways & Means Committee (Committee) and they recommended that we take advantage of this opportunity in order to save energy costs in the future. Since each project needs a separate loan, staff recommends that the City Manager approve all current and future On-Bill Finance energy efficiency projects. Randy Kuettle Acting Public Works Director Approved By: Charles McNeeley City Manager Attachment "1" On - Bill Financing 0% Interest, No Fees or Loan Costs Making Energy Efficiency More Affordable 20340-001 �— 393484-3 37 -14 z Southern California Edison What is On-Bill Financing? (SCE) is offering a new On-Bill Financing lets you finance • Be in good credit standing with On-Bill Financing program your qualified energy efficiency SCE,meaning you have not had: for qualifying energy projects interest-free.With On-Bill . A disconnection notice efficiency projects. Financing,you'll enjoy: • A 48-hour shutoff notice • 0%interest loans • A returned check in the past With Bill Financing, SCE s No fees or loan costs 12 months can woork rk with you to finance • Convenient loan repayment through your energy efficiency project to g A deposit to establish help achieve your organization's Your monthly SCE bill re-establish credit in the past goals — because in today's Along with On-Bill Financing, 12 months 9 Y� 9 g,you will economy, staying competitive also receive these benefits from your What are the Loan Limits? means reducing operating energy efficiency project: expenses while enhancing your , Thefollowing are the loan limits and Financial incentives for installing terms for different types of customers. bottom line. qualified energy-efficient equipment • Lower monthly electricity costs I • Long-term energy savings customer Loan Loan Type Limits Terms Who is Eligible? Business Minimum of 5yea All SCE business customers are $5,000 and 5 years eligible.To participate in On-Bill maximum of Financing,you must: $100,000 • Apply for an Express Solutions Government Minimum of Up to (for projects not yet installed)or and $5,000 and 10 years Customized Solutions energy Institutional maximum of efficiency incentive through SCE $250,000 • Have an active SCE account for a minimum of the last two years On-Bill Financing Make your business more energy efficient with zero-interest financing How Is the Loan Amount Calculated? How It Works The maximum loan amount is the The On-Bill Financing (OBF)Application Process: difference between the total project cost of the installed eligible energy efficiency Submit your application solutions and the incentives/rebates paid Submit a new Energy Management Solutions Incentives Application for by SCE. Express Solutions(for projects not yet installed)and/or Customized Solutions, together with an On-Bill Financing Application,using the Energy Management Loan funds must be used for the purchase Online Application Tool.Applications must be submitted on or after and installation of qualified energy August 2,2010 at 8:00 a.m.(PDT)to be eligible for an On-Bill Financing loan. efficiency equipment. OBF Application Review and Credit Check The illustration below shows that when you SCE will review your project application and evaluate your credit-worthiness use On-Bill Financing,the amount of the based on your SCE utility bill payment history. monthly loan payment will be offset by the bill savings resulting from your project. OBF Application Approval and Reservation Upon approval of your credit-worthiness On-Bill Financing loan funds will be On-Bill Financing Loan Repayment reserved for your project,provided the funds are available and you have not Ne[Eat. reached the customer loan cap. Monthly IIIIIIIIII IHIIIIIINI—Bill Reduction Equipment Pre-Inspection i An SCE engineer or approved third-party inspector will conduct an OBF Loan i/ inspection of your existing equipment.if the existing equipment has been Payment ��,--- Traynor your project will not en eligible for c On-Bill Financing loan,and may not be eligible for an SCE energy efficiency rebate/incentive. Bill ud OBF Bill OBF Loan New Retlpctipn Payment Energy due to Usage Equipment Installation Project due to Upon receipt of approval of your project application,you may install your. Savings Project energy efficiency project. Savings Submit Installation Report Before EE Aher EE When your project installation is complete submit an Installation Report form Project Pr' to SCE.Please refer to the 2010 Statewide Manuals for Express Solutions or with OBF with08F Customized Solutions on w ..sce.com/0nbi/l for Terms and Conditions. BE—Energy Efficiency OBF—O.Bill Financing Approval and Incentive Processing Once your installation is inspected and approved,SCE will process your incentive payment,finalize your On-Bill Financing Loan Agreement and send How to Apply it to you for signature. You must apply for On-Bill Financing online.To find out how this program can work for your organization, OBF Funds Distribution SCE contact our Account Re resentative Upon receipt of your signed Loan Agreement,SCE will provide you with the y P On-Bill Financing loan proceeds. or visit www.sce.cpm/onbil/.Or call 1.800-736.4777. Monthly Payments Begin Your first monthly zero-interest loan payment will appear on your next scheduled SCE bill. This program is funded by California utility customers and administered by Southern California Edison under the auspices of the California Public Utilities Commission.This program is offered onafirst-come,fbat-seryedbasis and isefe until n is expended the program is S(U1HN CALARN discontinued bthe n Public Utilities Co mmission.Thi aprogram maybe odifiatl or E D I S O N° terminated without prior notice. ®2010 southern California Edison.All rights reserved An LEMON Ill URN nfli8 7n,npi N11-28042.0710 FOR OVER 100 POWERED i EDISON. N m yl N C4 E V m m N IV N Ol N Hl W N lh CI W Y N C cl � 3a8 L a � e p��i �p�p n a �i �i a n C � W n ONI W A N n Oql yOy r N H (p A O b yUC W � y q {Ap OpI tp A `p y p H N N q q N N H N H H N N H H w y L N W O Y N A H rD Yl a W N N Cl N O rn a4 W H �O O t0 N �D d M N N�{ W (Iph W rl 1[1 t7 HI O! 1Np W a ` C m h WY (1pD (O ((ApO 0 tAO�p N 1ND N O Vi O M Y1 N N N q N N mA lh 1yy0 Y IOp 001 O ONI d 0 Q0N11 oN H N {1gy7 1pnp d g N n 0 m 10 n N r O 1p (O �p Ol M 6 H N H N N N N N VVV111 {y N Cb'1 W YA Cd 0 0. ,rN1 YNy Q M r q n O N N �ep1 N Q tyh Y QY 1D N Cl m m m W f ONf_ r (A N H N H N H p N N N N q N H N C C 'qJ �. q pNN� Oqi N pO INp n Y A r n y0 N mpd l0 n n C 5 O 1'! tD N W ��p W �np 01 N mW QH1 O N N N �q'1 C C W U N H y N N q H W M1 N H N H N N s y LL {p �p p p p F Cn N d 0 N m W M M h 10 S 8 N O Ol 131 l0 d M 10 C) !7 (+1 (�i H th O O Ip W � N d d A Q Q t7 Y C'! t"1 10 t7 10 tp W 10 � � N w 0 i a W VB m NN (WO n t0 r n N m 1D 10 W 100V IWO tO N O « A A O 10 W A tO NC Q O Q Y N U m m rn m m m m w w m m m m m 0 Oil I c d 2 to U N y � & LL a t ~ W € c S = g a E c u L N p q 51 z° x i 3 w z vi >" a v = w" 3 w �r1 �pp1 p 8 N N N W N N N N Q N CJ N n (0 O � O @ Q m V n ur t o a 0 f C 0 t _ a U W 8 U o a m F O A N N N N N N N N N N ty 1Nr1 Sl O C U a i p: N N tV N N N N N N N N N Q y y y n w C 0 C C C C C C C C C C C = (p O O ,Q O O O O O O O yO+ w N W N f/l fq W N N 4l 0) W N a E x W r LL IL IL 11, lL IL IL IL IL IL IL ILL IL CITY OF SAN BERNARDINO - REQUEST FOR COUNCIL ACTION From: Randy Kuettle, Acting Subject: Director of Public Works Resolution of the Mayor and Common Council of the City of San Bernardino authorizing the execution of finance Dept: Public Works agreements with the Southern California Edison Company for financing of energy efficiency projects at various City Date: August 4, 2010 buildings. M/CC Meeting Date: August 16, 2010 Synopsis of Previous Council Action: None Recommended Motion: 1. Adopt Resolution .,a Randy Ku ale, Acting Director of Public Works Contact person: Tony Frossard Phone: 384-5244 Supporting data attached: Staff Report, Resolution Ward(s): all FUNDING REQUIREMENTS: Amount: 0 Source:: 0 Barbara Pachon Director of Finance Council Notes: Agenda Item No. 2 cj —i(n -20t0 CITY OF SAN BERNARDINO - REQUEST FOR COUNCIL ACTION STAFF REPORT SUBJECT Resolution of the Mayor and Common Council of the City of San Bernardino authorizing the execution of finance agreements with the Southern California Edison Company for financing of energy efficiency projects at various City buildings. BACKGROUND On August 2, 2010, the Southern California Edison Company made funds available to government agencies and businesses at zero percent interest for energy efficiency projects. Working with a contractor, staff has engineered 16 projects, totaling approximately $230,000, that qualify for the Edison funding. Twelve of the projects are for the retrofitting of the lighting in each of the fire stations. The other four are lighting retrofits in the Animal Control buildings, Delmann Heights Community Center, Perris Hill Senior Center and the Fifth Street Senior Center. The program requires a separate application and financing agreement for each project. The program, known as On-Bill Financing, provides capital for agencies to fund energy efficiency projects. These projects will benefit Edison by reducing the demand for electricity during peak usage and benefit the customer by reducing energy consumption and, ultimately, the electric bill. The On-Bill Financing program allows borrowers to repay the debt service with the savings on the electric bill; the bill remains at the average payment amount and the savings from the reduction in energy consumption is applied to repay the loan for the energy efficiency projects (see Attachment 1 for additional information on this program). An example project is Fire Station 221: the annual electric bill is $29,400, the energy efficiency project cost is $46,515.25, the Edison rebate is $9,316.86, the total project cost to be financed is $37,198.39 the calculated annual saving is $10,913.41, the calculated payback period is 3.54 years. FINANCIAL IMPACT The total estimated project cost for the lighting retrofits is $230,000, which will be financed by the Edison On-Bill Financing. There will be no immediate cost to the City, as debt service will be paid through energy savings. See the attached summary of projects for information regarding the locations, annual electricity cost, individual project costs Edison rebates, costs to be financed, calculated annual savings, and calculated payback period (Attachment 2). RECOMMENDATION 1. Adopt Resolution Attachment "1" On - Bill Financing 0% Interest, No Fees or Loan Costs Making Energy Efficiency More Affordable _. zo3no-oo 3 ----H37 l4 = Z`� 8gTi1-68 9 >N 22 DA-A i Southern California Edison What is On-Bill Financing? (SCE) is offering a new On-Bill Financing lets you finance Be in good credit standing with On-Bill Financing program your qualified energy efficiency SCE, meaning you have not had: for qualifying energy projects interest-free.With On-Bill . A disconnection notice efficiency projects. Financing,you'll enjoy: • A 48-hour shutoff notice • 0%interest loans . A returned check in the past With O Financing,SCE . No fees or loan costs can worrk k Bill with you to finance 12 months your energy efficiency project to • Convenient loan repayment through . A deposit to establish or help achieve your organization's your monthly SCE bill re-establish credit in the past goals — because in today's Along with On-Bill Financing, 12 months 9 Y g g,you will economy,staying competitive also receive these benefits from your What are the Loan Limits? means reducing operating energy efficiency project: expenses while enhancing our The following are the loan limits and P g y • Financial incentives for installing terms for different types of customers. bottom line. qualified energy-efficient equipment • Lower monthly electricity costs • e • Long-term energy savings Customer Loan Loan Type Limits Terms Who is Eligible? All SCE business customers are Business Minimum of y to 5 $5,000 and to eligible.To participate in On-Bill maximum of Financing,you must: $100,000 • Apply for an Express Solutions Government Minimum of up to (for projects not yet installed)or and $5,000 and 10 years Customized Solutions energy institutional maximum of efficiency incentive through SCE $250,000 • Have an active SCE account for a minimum of the last two years On-Bill Financing Make your business more energy efficient with zero-interest financing How is the Loan Amount Calculated? How It Works The maximum loan amount is the The On-Bill Financing (OBF)Application Process: difference between the total project cost of the installed eligible energy efficiency Submit Your Application solutions and the incentives/rebates paid Submit a new Energy Management Solutions Incentives Application for by SCE. Express Solutions(for projects not yet installed)and/or Customized Solutions, together with an On-Bill Financing Application,using the Energy Management Loan funds must be used for the purchase Online Application Tool.Applications must be submitted on or after and installation of qualified energy August 2,2010 at 8:00 a.m.(PDT)to be eligible for an On-Bill Financing loan. efficiency equipment. The illustration below shows that when you OBF Application Review and Credit Check SCE will review your project application and evaluate your credit-worthiness use On-Bill Financing,the amount of the based on your SCE utility bill payment history. monthly loan payment will be offset by the bill savings resulting from your project. OBF Application Approval and Reservation Upon approval of your credit-worthiness On-Sill Financing loan funds will be On-Bill Financing Loan Repayment reserved for your project,provided the funds are available and you have not Net Ed. reached the customer loan cap. Monthly (IIIIIIIII Bill Reduction Reducton Equipment Pro-Inspection An SCE engineer or approved thud-party inspector will conduct CUBE— n inspection of your existing equipment.if the existing equipment has been payment Payment removed,your project will not be eligible for an On-Bill Financing loan,and i may not be eligible for an SCE energy efficiency rebate/incentive. Estimated Estimated Bill OBF Loan New Reduction Payment Energy due to Usage Equipment Installation Project do,to Upon receipt of approval of your project application,you may install your Savings Project energy efficiency project. Savings Submit Installation Report Before EE After EE When your project installation is complete submit an Installation Report form Project Project to SCE.Please refer to the 2010 Statewide Manuals for Express Solutions or with OBF with OBF Customized Solutions on w ..sce.com/0nbi//for Terms and Conditions. EE—Energy Efficiency Car—On-Bill Financing Approval and Incentive Processing Once your installation is inspected and approved,SCE will process your incentive payment,finalize your On-Bill Financing Loan Agreement and send How to Apply it to you for signature. You must apply for On-Bill Financing lw online.To find out how this program can work for your organization, d Lo Funds Distribution Upon receipt of your signed Loan Agreement,SCE will provide you with the contact your Account Representative On-Bill Financing loan proceeds. or visit ..sce.com/0nbil/`Or call 1-800-736-4777. IV Monthly Payments Begin Your first monthly zero-interest loan payment will appear on your next scheduled SCE bill. This program is funded by California utility customers and administered by Southern California Edison under the auspices of the California Public Utilities Commission.This program is offered J on e first-coma,first-served basis and is effective until funding is expended or the program is SOUTHERN CALIFORNIA discontinued by the California Public Utilities Commission.This program may be modified or E D I S O N` terminated without prior notice. ®2010 Southern California Edison.All rights reserved nn 11111111 1111 RN Nk 1101A C"icmn.ay NR-Zap-V2-0710 POWERED FOR OVER 100 YEARS...LIFE. BY EDISON. i N yppp ♦ m m y m p n M C Y e r O m 0 N W N N Ni N N N M N M lV M M M d N 'p Q � a8 O 0 pt CIL r% H N N N N N N H N M N N N H O LU C1 N O wi e 6 o^f �^p ai M ui vi � ae (spy of ar.. W N O f0 t0 10 0 n N N N op yy�� yy�� pp GG ��ww GG m 8 H N H H O N N Y NN M R @. N N �YVj1 Yy1 N H � N 1p p {r� nn U N 01 n Q m i0 1w < N Y M r OMI n o N W p 1A �np ONI Oy nC O N 6ii {Np �Mpl N V tyh O y< IQ q N A 1ff Om O �(p� n U Q N N ° N H N N m H N N N N N C N N N W F N C 3 LCC m m as m n e n nn o u� mpa y� C Cc A Omq� 1b0 bNb W t�D mp Gr1pp at N 1mm� aD ° N NN N M al d LL m m e 3 n n n n i+3 (n C W m 6 v r a v m v m ri m vi m m of e w O O LU G (.) m m n e n n n e m n N a ° 0 S 0 0 N O m N W Oay Gil Q N 90 N � V fn v1 S LN g a w 3 w ` r rm� Vy� C c ❑ S w t y E c C N Wbi 2 Z Y Z 3 W Z 41 a U Z W 3 o � � U 9 c N o G c E p c J Z V w a f m 0 O. ry t�Vy �My {ay m 1ryD dry {my {my o N t `o CK N N N N N N N N N N N N Q c c c c c c c c c c c c LL LL LL o LL 0 I0 L LL 0 0 0 0 0 0 c 0 I E E E g E O c xN tw i L 65 A N N V U m N 1 m m w C � 12 @@ 2 N 2@@ E E' E E LL LL LL!1 y= ' LL LL LL Q S' a LL Corgi 1 RESOLUTION NO. 2010-306 2 RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO AUTHORIZING THE EXECUTION OF FINANCE 3 AGREEMENTS WITH SOUTHERN CALIFORNIA EDISON COMPANY FOR 4 FINANCING ENERGY EFFICIENCY PROJECTS AT VARIOUS CITY BUILDINGS. 5 6 WHEREAS, the City of San Bernardino is committed to creating a sustainable 7 environment and has implemented a number of energy efficiency projects in its efforts to 8 reduce its carbon foot print; and 9 WHEREAS, Southern California Edison Company has initiated the On-Bill Financing 10 program which makes funds available at a zero percent interest rate to government agencies 11 and businesses for energy efficiency projects; and 12 WHEREAS, the City of San Bernardino has identified 16 projects, totaling $230,000, 13 that qualify as energy efficiency projects. 14 NOW THEREFORE, BE IT RESOLVED BY THE MAYOR AND COMMON 15 COUNCIL OF THE CITY OF SAN BERNARDINO AS FOLLOWS: 16 SECTION 1. The Mayor and Common Council hereby authorize the City Manager 17 to execute on behalf of the City of San Bernardino On-Bill Financing Agreements for financing of energy efficiency projects with Southern California Edison Company limited to 18 those projects on Attachment 2 in substantially the form attached hereto as Attachment A and 19 by this reference made a part hereof. 20 SECTION 2. The authorization set forth in Section 1 is for those projects described 21 in Attachment 2, attached hereto and by this reference made a part hereof. The City Manager 22 may execute the necessary On-Bill Financing Agreement for each project described in 23 Attachment 2 as that project comes into compliance with the funding criteria for the On-Bill 24 Financing program. 25 SECTION 3. The authority hereby granted shall become void and of no further effect 26 on and after September 7, 2012. 27 28 I RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO AUTHORIZING THE EXECUTION OF FINANCE AGREEMENTS 2 WITH SOUTHERN CALIFORNIA EDISON COMPANY FOR FINANCING ENERGY EFFICIENCY PROJECTS AT VARIOUS CITY BUILDINGS. 3 4 I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Mayor and 5 Common Council of the City of San Bernardino at a meeting thereof, 6 held on the day of , 2010,by the following vote, to wit: 7 COUNCIL MEMBERS: AYES NAYS ABSTAIN ABSENT 8 MARQUEZ 9 DEJARDINS 10 BRINKER 11 SHORETT 12 KELLEY 13 JOHNSON 14 MCCAMMACK 15 16 CITY CLERK 17 The foregoing Resolution is hereby approved this_day of 2010. 18 19 PATRICK J. MORRIS,Mayor 20 City of San Bernardino 21 Approved as to form: 22 JAMES F.PENMAN, City Attorney 23 By: 24 25 26 27 28 2 Attachment A Southern California Edison On-Bill Financing Agreement SOMIFRN G FORNV EDISON An t1.111 INTf NNAt10NAL•Compny Southern California Edison Form# 14-791 6/2010 On-Bill Financing Agreement This On-Bill Financing Agreement to("OBF Agreement") is entered into on 20_, (the"Effective Date")by and between the undersigned customer("Customer") and Southern California Edison Company("SCE") (each a"Party,"collectively the"Parties"). Recitals 1. Customer and SCE entered into the Energy Management Solutions Incentives Application for Business Customers on or about , 20 and if applicable, the Customized Solutions Agreement (individually or collectively referred to as "EMS Agreement'), which is/are attached hereto and incorporated herein by reference 2. Customer owns, leases or rents the property listed in the EMS Agreement as the Site and maintains a service account with SCE for electric service. Customer has completed installation of certain energy efficient equipment ("Equipment") at the Site as set forth in the EMS Agreement and has accepted the equipment as being operational and in good working order. 3. In Decision 09-09-047, the California Public Utilities Commission authorized SCE to provide zero percent interest financing for the installation of certain energy efficient equipment, which is to be repaid over a specified period through the Customer's electric utility bill("On-Bill Financing"). 4. Customer desires to enter into this OBF Agreement in order to participate in SCE's On-Bill Financing program and Customer agrees to repay SCE the Amount Financed (as defined under "Loan Terms", below) through the Customer's SCE utility bill pursuant to the terms and conditions of this OBF Agreement. NOW, THEREFORE, in consideration of the mutual promises and covenants contained herein,the Parties agree as follows: Terms and Conditions Defined Terms: Except as the context otherwise requires, capitalized terms used in this OBF Agreement without definition shall have the same meanings as are set forth in the EMS Agreement. Amount Financed: Within thirty (30) days after the Effective Date, SCE will provide a payment for the Amount Financed to Customer or to a third-party payee designated by Customer under the Loan Terms,below.Customer's designation of a third-party payee may not be changed or revoked. Loan Terms: Amount Financed "Amount Financed" $ .00 Interest Rate: 0% Fees: 0 Months to Pay: Monthly Payment: $ Service Account to be Billed: Designated Third-Pa Payee if any): Address of Designated Third-Pa Payee: Southern California Edison Form#14-7916/2010 Promise to Pay: Customer promises to pay SCE the Amount Financed in equal monthly installments as set forth in the section above (Customer's "Loan Obligation'). The first Monthly Payment of Customer's Loan Obligation will appear within sixty (60) days from the Effective Date on Customer's SCE utility bill for the Service Account listed above. Manner of Payment: Customer's Monthly Payment amount will appear as a line item labeled "EE OBF Installment Charge" on the monthly SCE utility bill for Customer's Service Account. Customer may pay the Loan Obligation in the monthly installments or pre-pay the Loan Obligation in one lump sum without penalty, but pre-payments for less than the remaining balance will not be allowed. Customer's Loan Obligation will appear on Customer's monthly SCE utility bill for the number of months set forth above, or until the Loan Obligation is paid in full by Customer, whichever occurs first. Customer shall make payments to SCE as directed in the SCE utility bill. Partial Payments: If Customer is unable to make a full payment of the Loan Obligation in any given month, payment arrangements may be made at SCE's sole discretion. Any partial payments will be applied in equal proportion to the energy charges and the Loan Obligation, and the Customer will be considered to be delinquent and in default of both the energy bill and the Loan Obligation. Late Payments: No late payment charges or interest will be assessed for delinquent payments on the Loan Obligation. However, SCE may assess late payment charges for delinquent payments of energy charges pursuant to SCE's Rule 9 which is incorporated herein by reference. Returned Payments: SCE may require payment of a $10.00 Returned Check Charge for any check returned from Customer's financial institution unpaid. The Returned Check Charge will also apply to any forms of payment that are subsequently dishonored. Discontinuance of Service: Amounts due under this OBF Agreement will be amounts deemed due under each SCE utility bill to the Customer's Service Account, and a default under this OBF Agreement will be treated as a default under the Customer's Service Account. Customer's Loan Obligation is subject to the discontinuance provisions of SCE's Rule 11, Discontinuance and Restoration of Service, Section B, Nonpayment of Bills or Summary Bills which is incorporated herein by reference. Breach and Acceleration: Any breach by Customer under the EMS Agreement or this OBF Agreement shall constitute a breach under all of the above referenced agreements. For purposes herein, SCE may determine the OBF Agreement to be breached and Customer to be in default if Customer: (1) sells, assigns or otherwise transfers ownership, possession or title of the Site or the Equipment, (2) fails to pay the Monthly Payment amount when due, (3) closes, discontinues or otherwise causes the termination of the Service Account, or (4) otherwise breaches this OBF Agreement and/or the EMS Agreement, and the breach is not cured as specified therein. Notwithstanding anything to the contrary in the EMS Agreement, a breach and default as set forth in this section shall not be subject to any additional cure period. Following a breach as set forth in this section, SCE shall have the right to declare the entire unpaid balance of the Loan Obligation immediately due and payable. Purchase Money Security Interest: Customer hereby agrees that SCE may, but is not obligated to, file a UCC-1 ("Financing Statement") against the Equipment to secure Customer's obligation to repay the Amount Financed. Customer agrees to execute any and all documents in connection with the Financing Statement in order for SCE to perfect its security interest in the Equipment. Customer agrees that SCE is not waiving any of its rights of recovery as against the Customer should SCE elect to file a Financing Statement. Southern California Edison Form#14-791 612010 Confession of Judgment: Customer irrevocably authorizes and empowers SCE and SCE's attorneys, upon breach and default by Customer as described in the preceding section, to appear in any state or federal court in Los Angeles County, California, as Customer's attomey-in-fact and confess judgment against Customer by entry of a confession of judgment pursuant to Code of Civil Procedure§ 1132 et. seq., or by any other appropriate means, for the full amount due plus all costs of collection, including without limitation court costs and reasonable attomeys'fees. No single exercise of the foregoing power to confess judgment will be deemed to exhaust the power, whether or not any such exercise shall be held by any court to be invalid, voidable, or void; but the power will continue undiminished and may be exercised from time to time as SCE may elect until all amounts owing under this OBF Agreement have been paid in full. Modification: Any change to this OBF Agreement must be in writing and signed by Customer and SCE; except that during any given month, if Customer is unable to make full payment on the Loan Obligation, payment arrangements may be made at SCE's sole discretion without modifying this OBF Agreement in writing. Any written modification or amendment will not be effective unless and until signed by SCE or such condition is waived by SCE in its sole and absolute discretion. Term and Termination: It is the Parties intent that the term of this OBF Agreement and the EMS Agreement run concurrently. Therefore, the OBF Agreement shall continue into effect until the Loan Obligation is paid in full. Assignment: Notwithstanding anything to the contrary in the Agreement, Customer may not assign its rights or delegate its duties under the Agreement. Additional Representations: Each person signing this OBF Agreement represents and warrants that he or she is duly authorized and has the legal capacity to execute and deliver this OBF Agreement on behalf of Customer, and to perform their obligations under this OBF Agreement. Customer further represents and warrants that if it is a legal entity, it is in good standing in its state of formation. Miscellaneous: Except as otherwise specifically provided herein, all terms, provisions, covenants, representations, warranties, agreements and conditions of the EMS Agreement shall remain unchanged and in full force and effect. Should a conflict exist between this OBF Agreement, the EMS Agreement and the documents incorporated by reference, this OBF Agreement shall control.This OBF Agreement shall be construed and interpreted in accordance with, and shall be governed and enforced in all respects according to, the laws of the State of California. This OBF Agreement may be executed in one or more counterparts, each of which shall be deemed an original but all of which shall constitute one and the same instrument. If any one or more of the provisions contained in this OBF Agreement shall for any reason be held to be invalid, illegal or unenforceable in any respect, then this OBF Agreement shall be construed as if such invalid, illegal or unenforceable term or provision had never been contained herein and all other provisions of this OBF Agreement shall be construed to remain fully valid, enforceable and binding on the parties. The Recitals set forth above are hereby incorporated herein by reference. [Remainder of page intentionally left blank] Southern California Edison Form#14-7916/2010 IN WITNESS WHEREOF,the Parties have executed this OBF Agreement as of the Effective Date. Customer: Southern California Edison Company: Authorized Representative: Authorized Representative. Title: Title: Signature: Signature: Date: Date: Business Address: Business Address: © Telephone No. Telephone No. Fax No. Fax No. E-Mail Address: - E-Mail Address: C Southern California Edison Form#14-791 612010 i Attachment "V `.fin - Bill Financing Q% Interest, No Fees or Loan Costs Making Energy Efficiency More Affordable 2n9�+ry,1 'f1 �! i)E jY tit III =I Southern California Edison What is On-Bill Financing? (SCE)is offering a new On-Bill Financing lets you finance Be in good credit standing with On-Bill Financing program your qualified energy efficiency SCE,meaning you have not had: for qualifying energy projects interest-free.With On-Bill . A disconnection notice efficiency projects. Financing,you'll enjoy: • A 48-hour shutoff notice • 0%interest loans • A returned check in the past With Bill Financing, SCE • No fees or loan costs 12 months can woork rk with you to finance . Convenient loan repayment through or your energy efficiency project to g Aeablito establish Your monthly SCE bill re-establish credit in the e past help achieve your organization's 12 months g oals — because in today's Along with On-Bill Financin g,you will economy, staying competitive also receive these benefits from your What are the Loan Limits? means reducing operating energy efficiency project: expenses while enhancing your a Financial incentives for installing he following are the loan limits and 9 terms for different types of customers. bottom line. qualified energy-efficient equipment • Lower monthly electricity costs • r • Long-term energy savings Customer Loan Loan Type Limits Terms Who is Eligible? Business Minimum of Up to All SCE business customers are $5,000 and 6 years eligible.To participate in On-Bill maximum of Financing,you must: $100,000 • Apply for an Express Solutions Government Minimum of Up to (for projects not yet installed)or and $5,000 and - 10 years Customized Solutions energy Institutional maximum of efficiency incentive through SCE 1 $250,000 • Have an active SCE account for a minimum of the last two years On-Bill Financing .ake your business more energy efficient with zero-interest financing How lathe Loan Amount Calculated? How It Works The maximum loan amount is the The On-Bill Financing(OBF)Application Process: difference between the total project cost of the installed eligible energy efficiency Submit Your Application solutions and the incentivestrebates paid Submit new Energy Management Solutions Incentives Application for by SCE. Express Solutions(for projects not yet installed)and/or Customized Solutions, together with an On-Bill Financing Appfication,using the Energy Management Online Application Tool.Applications must be submitted on or after Loan funds must be used for the purchase August 2,2010 at 8:00 a.m.(PDT)to be eligible for an On-Bill Financing loan. and installation of qualified energy efficiency equipment. OBF Application Review and Chiral The illustration below shows that when you F E will review your project application and evaluate your credit-worthiness use On-Bill Financing,the amount of the ed on your SCE utility bill payment history. monthly loan payment will be offset by the • bill savings resulting from your project. OBF Application Approval and Reserve Us. Upon approval of your credit-worthiness On-Bill Financing loan funds will be On-Bill Financing Loan Repayment reserved for your project,provided the funds are available and you have not reached the customer loan cap. Net ESL Monthly aninalll—Bill Reduction Equipment Pre-Inspection a� An SCE engineer or approved third-party inspector will conduct an r' —OBF Lom inspection of your existing equipment.if the existing equipment has been Payment removed,your project will not be eligible for an On-Bill Financing loan,and may not be eligible for an SCE energy efficiency rebatelincentive. Estimated Estimated BIII OBFLmm —New Reduction Payment Energy Equipment Installation duel. Venga Upon receipt of approval of your project application,you may install your Project due e Savings Pr.iect energy efficiency project. savings Submit install=P,Before EE Aher EE When your project installation is complellation Report form Project project to SCE.Please refer to the 2010 Statewipress Solutions or with OBF iso OBF Customized Solutions on www.sce.com and Conditions. EE—Energy Efficiency OBF—Om Bel Financing Approval and Incentive Processing Once your installation is inspected and approved,SCE will process your incentive payment,finalize your On-Bill Financing Loan Agreement and send How to Apply it to you for signature. You must apply for On-Bill Financing online.To find out how this program OBF Funds Distribution can work for your organization, Upon receipt of your signed Loan Agreement,SCE will provide you with the contact your Accou nt Representative On-Bill Financing loan proceeds. or visit www.sce.t om/onbill.Or call 1-600-736-4777. Monthly Payments Begin [Scheduled r first monthly zero-interest loan payment will appear on your next SCE bill. This program is funded by California utility customers and administered by Southern California Edison under the auspices cities California Public Utlin ea Commission.This program is offered n e first-come,the not-served beaus and is effective until funding is ea rem m y the program is SOUTHERN CALIFORNIA on a fi)imam e.the California Public is effective Commission.This se pend d o be modified or E D l S O N` terminatedwilhoul prior notice. e 2010 Southern California Edison.All rights reserved. An CN5ON1A9LRNA770N.11';Cum, 1 149-28042-0710 FOR OVER 19 1) POWERED BY f i N N X b d m m N 01 A N m N m A m A m A C Y (U A O m m N m N Q N O m N A m N m G N M N M d N O W 1 Z O Q Q q •qj C N tA'1 eJ O 1b') O N pO m O N N m N A 01 m A N A Q Wl N m r m b A U O w U O L R C U _ •LL m O V L- Q'q O LL N m 9 U p N N N m p d O A m N N yN N Ip m mNS b N m O N C j H M O N N O t{N m A Ob m mw pm Q N m r 7+j l N N d N H N m py emN Om w_m Hb A r N J f I N b N N H N d IN aN A d N N N m G 0 H m O N 1O m N d a A N'm N m 0 A O l f N N N N A m m O m N N N A m H O w d Im_m b A y O II N N F N N O�N N p 1N N d A w N N 1N A D l 7 H(YN 1OO tON 1tm ON t1m O 0 h 0 D'0 l)I I f N N m m'N m Q Y^N M H Q m H m N N N O m O f H N Q d N N m m A O H w N N N A IAA 0 1p O 0 b N ttN m Vm N N N Ih b H d pm b m mm b h 7 rI j H p ImA N N N N N H H ONN N w rN Im o m m C I i w 1d m m O N m N N�N N INO w n m f y m 1m 7 m m a O SD, N 1N O H N A O m m N N O N w m m b"m A O N) H H m P-12ov. Q N N A Q m 7 b m m N m b m r N N !p + m " N O M N m N O O m M A N N YI A N O N N N m N O C N m m A c'; O -i G N N b O m m d m N N N m N m N m N d b A Q A A N OI p Oi ai e a6 Ic N pl ac L A w 0 0 O O O d v 'i O Ii m N W O m N O O N N N N m 'N N m NO m m m m m m m O O Y y pcp d g in 'o a V 3 u1O C e U N i0 o L m m u m- LL N N Y �_ L a p a 6 - ° £ LD -a 9 a S L �_N O S N M am p E O C U N m Y{m O = Y w Z 16 m N Q O N N N W m q 3 N1p Y m N N d m CI N A OO - n W T c N � s o u E y m o EEo m L J Z W p L U O O N N N N N N N N N I"1 1"1 I'1 Q .m C m W a LL' N N N N N N N N N N N N m N 4 6 c m c pC ILL. L m N Io _iW o 0 N H c c 00 00 0 0 q e c o S ' a @ O p o 3 m m ✓ m 3 9 = U = 9 N i5 N N N N W € m N iTI LL IL E El al IL IL IL IL IL RESOLUTION NO. RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO AUTHORIZING THE EXECUTION OF FINANCE AGREEMENTS WITH THE SOUTHERN CALIFORNIA EDISON COMPANY FOR FINANCING OF ENERGY EFFICIENCY PROJECTS AT VARIOUS CITY BUILDINGS. WHEREAS, the City of San Bernardino is committed to creating a sustainable environment and has implemented a number of energy efficiency projects in its efforts to reducing its carbon foot print; and WHEREAS, Southern California Edison Company has initiated the On-Bill Financing program which makes funds available at zero percent interest rate to government agencies and businesses for energy efficiency projects; and WHEREAS, the City of San Bernardino has identified 16 projects, totaling $230,000, that qualify for this project, including improvements at all 12 Fire Stations, the Animal Control Facilities, Delmann Heights Community Center, Perris Hill Senior Center, and the Fifth Street Senior Center, please see attached. NOW THEREFORE, BE IT RESOLVED BY THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO AS FOLLOWS: SECTION 1. The Mayor and Common Council hereby authorize the City Manager to execute on behalf of the City Agreements for Financing with the Southern California Edison Company, on file in the City Clerk's Office and incorporated herein by reference as attachments. RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO AUTHORIZING THE EXECUTION OF FINANCE AGREEMENTS WITH THE SOUTHERN CALIFORNIA EDISON COMPANY FOR FINANCING OF ENERGY EFFICIENCY PROJECTS AT VARIOUS CITY BUILDINGS. I HEREBY CERTIFY that the foregoing resolution was duly adopted by the Mayor and Common Council of the City of San Bernardino at a meeting thereof,held on the day of 2010, by the following vote, to wit: Council Members: AYES NAYS ABSTAIN ABSENT MARQUEZ DESJARDINS BRINKER SHORRETT KELLEY JOHNSON McCAMMACK Rachel G. Clark,City Clerk The foregoing resolution is hereby approved this day of 2010. Patrick J. Morris, Mayor City of San Bernardino Approved as to form: James F. Penman, City Attorney I RESOLUTION NO. 2 RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO AUTHORIZING THE EXECUTION OF FINANCE AGREEMENTS 3 WITH SOUTHERN CALIFORNIA EDISON COMPANY FOR FINANCING ENERGY EFFICIENCY PROJECTS AT VARIOUS CITY BUILDINGS. 4 5 WHEREAS,the City of San Bernardino is committed to creating a sustainable 6 environment and has implemented a number of energy efficiency projects in its efforts to reduce its carbon foot print; and 7 WHEREAS, Southern California Edison Company has initiated the On-Bill Financing 8 9 program which makes funds available at a zero percent interest rate to government agencies and 10 businesses for energy efficiency projects; and WHEREAS,the City of San Bernardino has identified 16 projects, totaling$230,000, that 11 12 qualify as energy efficiency projects. 13 NOW THEREFORE, BE IT RESOLVED BY THE MAYOR AND COMMON 14 COUNCIL OF THE CITY OF SAN BERNARDINO AS FOLLOWS: IS Section 1. The Mayor and Common Council hereby authorize the City Manager to Execute on behalf of the City of San Bernardino On-Bill Financing Agreements for financing o*2- 16 �7 �1�Ae ,,� ._ energy efficiency projects with Southern California Edison Compa4An '^suubTstantially th/e`f_6rrm" 17 18 attached hereto as Attachment A and by this reference made a part hereof. 19 Section 2. The authorization set forth in Section 1 is for those projects described in 20 Attachment 2, attached hereto and by this reference made a part hereof The City Manager may 21 execute the necessary On-Bill Financing Agreement for each project described in Attachment 2 as 22 that project comes into compliance with the funding criteria for the On-Bill Financing program. 23 en a iscre i 24 a cause e o , 25 26 Section 3. The authority hereby granted shall become void and of no further effect on and after September 7,2012. 27 28 1 74y � 17 9/7//b 1 RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO AUTHORIZING THE EXECUTION OF FINANCE AGREEMENTS 2 WITH SOUTHERN CALIFORNIA EDISON COMPANY FOR FINANCING ENERGY EFFICIENCY PROJECTS AT VARIOUS CITY BUILDINGS. 3 4 I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Mayor and 5 Common Council of the City of San Bernardino at a meeting thereof, 6 held on the_day of 2010,by the following vote, to wit: 7 COUNCIL MEMBERS: AYES NAYS ABSTAIN ABSENT 8 MARQUEZ — 9 DEJARDINS 10 BRINKER — 11 SHORETT 12 KELLEY — 13 JOHNSON 14 MCCAMMACK 15 16 CITY CLERK 17 The foregoing Resolution is hereby approved this—day of 2010. 18 19 PATRICK J.MORRIS,Mayor 20 City of San Bernardino 21 Approved as to form: 22 JAMES F. PENMAN, City Attorney 23 By: 24 25 26 27 21 2 Attachment A Southern California Edison On-Bill Financing Agreement ElsourHE.C UFOMA EDISON* nr evvsox iu+exxnnurvnc c�mm�y Southern California Edison Fort#14-791 6/2010 ... On-Bill Financing Agreement This On-Bill Financing Agreement to("OBF Agreement") is entered into on 20_, (the"Effective Date") by and between the undersigned customer("Customer) and Southern Califomia Edison Company("SCE") (each a"Party,"collectively the"Parties"). Recitals 1. Customer and SCE entered into the Energy Management Solutions Incentives Application for Business Customers on or about , 20 and K applicable, the Customized Solutions Agreement (individually or collectively referred to as "EMS Agreement"), which is/are attached hereto and incorporated herein by reference 2. Customer owns, leases or rents the property listed in the EMS Agreement as the Site and maintains a service account with SCE for electric service. Customer has completed installation of certain energy efficient equipment ("Equipment") at the Site as set forth in the EMS Agreement and has accepted the equipment as being operational and in good working order. 3. In Decision 09-09-047, the California Public Utilities Commission authorized SCE to provide zero percent interest financing for the installation of certain energy efficient equipment, which is to be repaid over a specified period through the Customer's electric utility bill("On-Bill Financing"). 4. Customer desires to enter into this OBF Agreement in order to participate in SCE's On-Bill Financing program and Customer agrees to repay SCE the Amount Financed (as defined under "Loan Terms", below) through the Customer's SCE utility bill pursuant to the terms and conditions of this OBF Agreement. NOW, THEREFORE, in consideration of the mutual promises and covenants contained herein,the Parties agree as follows: Terms and Conditions Defined Terms: Except as the context otherwise requires, capitalized terms used in this OBF Agreement without definition shall have the same meanings as are set forth in the EMS Agreement. Amount Financed: Within thirty(30)days after the Effective Date, SCE will provide a payment for the Amount Financed to Customer or to a third-party payee designated by Customer under the Loan Terms,below.Customer's designation of a third-party payee may not be changed or revoked. Loan Terms: Amount Financed "Amount Financed" $ .00 Interest Rate: 0% Fees: 0 Months to Pay: Monthly Payment: $ Service Account to be Billed: Designated Third-Pa Payee if any): Address of Designated Third-Pa Payee: Southern California Edison Form#14-791 6/2010 Promise to Pay: Customer promises to pay SCE the Amount Financed in equal monthly installments as set forth in the section above (Customer's "Loan Obligation"). The first Monthly Payment of Customer's Loan Obligation will appear within sixty (60) days from the Effective Date on Customer's SCE utility bill for the Service Account listed above. Manner of Payment: Customer's Monthly Payment amount will appear as a line item labeled "EE OBF Installment Charge" on the monthly SCE utility bill for Customer's Service Account. Customer may pay the Loan Obligation in the monthly installments or pre-pay the Loan Obligation in one lump sum without penalty, but pre-payments for less than the remaining balance will not be allowed. Customer's Loan Obligation will appear on Customer's monthly SCE utility bill for the number of months set forth above, or until the Loan Obligation is paid in full by Customer, whichever occurs first. Customer shall make payments to SCE as directed in the SCE utility bill. Partial Payments: If Customer is unable to make a full payment of the Loan Obligation in any given month, payment arrangements may be made at SCE's sole discretion. Any partial payments will be applied in equal proportion to the energy charges and the Loan Obligation, and the Customer will be considered to be delinquent and in default of both the energy bill and the Loan Obligation. Late Payments: No late payment charges or interest will be assessed for delinquent payments on the Loan Obligation. However, SCE may assess late payment charges for delinquent payments of energy charges pursuant to SCE's Rule 9 which is incorporated herein by reference. Returned Payments: SCE may require payment of a $10.00 Returned Check Charge for any check returned from Customer's financial institution unpaid. The Returned Check Charge will also apply to any forms of payment that are subsequently dishonored. Discontinuance of Service: Amounts due under this OBF Agreement will be amounts deemed due under each SCE utility bill to the Customer's Service Account, and a default under this OBF Agreement will be treated as a default under the Customer's Service Account. Customer's Loan Obligation is subject to the discontinuance provisions of SCE's Rule 11, Discontinuance and Restoration of Service, Section B, Nonpayment of Bills or Summary Bills which is incorporated herein by reference. Breach and Acceleration: Any breach by Customer under the EMS Agreement or this OBF Agreement shall constitute a breach under all of the above referenced agreements. For purposes herein, SCE may determine the OBF Agreement to be breached and Customer to be in default if Customer: (1) sells, assigns or otherwise transfers ownership, possession or title of the Site or the Equipment, (2) fails to pay the Monthly Payment amount when due, (3) closes, discontinues or otherwise causes the termination of the Service Account, or (4) otherwise breaches this OBF Agreement and/or the EMS Agreement, and the breach is not cured as specified therein. Notwithstanding anything to the contrary in the EMS Agreement, a breach and default as set forth in this section shall not be subject to any additional cure period. Following a breach as set forth in this section, SCE shall have the right to declare the entire unpaid balance of the Loan Obligation immediately due and payable. Purchase Money Security Interest: Customer hereby agrees that SCE may, but is not obligated to, file a UCC-1 ("Financing Statement") against the Equipment to secure Customer's obligation to repay the Amount Financed. Customer agrees to execute any and all documents in connection with the Financing Statement in order for SCE to perfect its security interest in the Equipment. Customer agrees that SCE is not waiving any of its rights of recovery as against the Customer should SCE elect to file a Financing Statement. r V✓ Southern California Edison Form#14-7916/2010 Confession of Judgment: Customer irrevocably authorizes and empowers SCE and SCE's attorneys, upon breach and default by Customer as described in the preceding section, to appear in any state or federal court in Los Angeles County, California, as Customer's attomey-in-fact and confess judgment against Customer by entry of a confession of judgment pursuant to Code of Civil Procedure§ 1132 et. seq., or by any other appropriate means, for the full amount due plus all costs of collection, including without limitation court costs and reasonable attomeys'fees. No single exercise of the foregoing power to confess judgment will be deemed to exhaust the power, whether or not any such exercise shall be held by any court to be invalid, voidable, or void; but the power will continue undiminished and may be exercised from time to time as SCE may elect until all amounts owing under this OBF Agreement have been paid in full. Modification: Any change to this OBF Agreement must be in writing and signed by Customer and SCE; except that during any given month, if Customer is unable to make full payment on the Loan Obligation, payment arrangements may be made at SCE's sole discretion without modifying this OBF Agreement in writing. Any written modification or amendment will not be effective unless and until signed by SCE or such condition is waived by SCE in its sole and absolute discretion. Term and Termination: It is the Parties intent that the term of this OBF Agreement and the EMS Agreement run concurrently. Therefore, the OBF Agreement shall continue into effect until the Loan Obligation is paid in full. Assignment: Notwithstanding anything to the contrary in the Agreement, Customer may not assign its rights or delegate its duties under the Agreement. Additional Representations: Each person signing this OBF Agreement represents and warrants that he or she is duly authorized and has the legal capacity to execute and deliver this OBF Agreement on behalf of Customer, and to perform their obligations under this OBF Agreement. Customer further represents and warrants that if it is a legal entity, it is in good standing in its state of formation. Miscellaneous: Except as otherwise specifically provided herein, all terms, provisions, covenants, representations, warranties, agreements and conditions of the EMS Agreement shall remain unchanged and in full force and effect. Should a conflict exist between this OBF Agreement, the EMS Agreement and the documents incorporated by reference,this OBF Agreement shall control.This OBF Agreement shall be construed and interpreted in accordance with, and shall be governed and enforced in all respects according to, the laws of the State of California. This OBF Agreement may be executed in one or more counterparts, each of which shall be deemed an original but all of which shall constitute one and the same instrument. If any one or more of the provisions contained in this OBF Agreement shall for any reason be held to be invalid, illegal or unenforceable in any respect, then this OBF Agreement shall be construed as if such invalid, illegal or unenforceable term or provision had never been contained herein and all other provisions of this OBF Agreement shall be construed to remain fully valid, enforceable and binding on the parties. The Recitals set forth above are hereby incorporated herein by reference. [Remainder of page intentionally left blank] Southern California Edison Form#14-7916/2010 IN WITNESS WHEREOF.the Parties have executed this OBF Agreement as of the Effective Date. Customer: Southern California Edison Company: Authorized Representative: Authorized Representative: Title: Title: Signature: Signature: Date: Date: Business Address: Business Address: Telephone No. Telephone No. Fax No. Fax No. E-Mail Address: E-Mail Address: Southern California Edison Form#14-791 6/2010 Attachment "1" OnmBill Financing 4% interest, No Fees or Loan Casts Making Energy Efficiency More Affordable I ii Southern California Edison What is On-Bill Financing? (SCE)is offering a new On-Bill Financing lets you finance • Be in good credit standing with On-Bill Financing program your qualified energy efficiency SCE,meaning you have not had: for qualifying energy projects interest-free.With On-Bill • A disconnection notice efficiency projects. Financing,you'll enjoy: . A 48-hour shutoff notice • 0%interest loans . A returned check in the past With On-Bill Financing, SCE • No fees or loan costs 12 months can work with you to finance . Convenient loan repayment through • A deposit to establish or your energy efficiency project to your monthly SCE bill re-establish credit in the past help achieve your organization's 12 months goals — because in today's Along with On-Bill Financing,you will economy, staying competitive also receive these benefits from your What are the Loan Limits? means reducing operating energy efficiency project: Thefollowing are the loan limits and expenses while enhancing your . Financial incentives for installing terms for different types of customers. bottom line. qualified energy-efficient equipment • Lower monthly electricity costs • Long-term energy savings customer Loan Loan Type Limits Terms Who is Eligible? Business Minimum of Up to . All SCE business customers are 46,000 and 5years eligible.To participate in On-Bill maximum 00 of Financing,you must: • Apply for an Express Solutions Government minimum of Up to (for projects not yet installed)or and 45,000 and - 10 years Customized Solutions energy Institutional maximum aF 4260,000 efficiency incentive through SCE • Have an active SCE account for a minimum of the last two years On-Bill Financing �ake your business more energy efficient with zero-interest financing How is the Loan Amount Calculated? How It Works The maximum loan amount is the The On-Bill Financing (OBF)Application Process: difference between the total project cost submit your Application of the installed eligible energy efficiency solutions and the incentives/rebates paid Submit a new Energy Management Solutions Incentives Application for b SCE, Express Solutions(for projects not yet installed)and/or eFnerrlleed Solutions, Y together with an On-Bill Financing Application,using the Energy Management Online Application Tool.Applications must be submitted on or after Loan funds must be used for the purchase August 2,2010 at 8:00 a.m.IPDTI to be eligible for an On-Bill Financing loan. and installation of qualified energy efficiency equipment. OBF Application Review and Credit Check The illustration below shows that when you SCE will review your project application and evaluate your credit-worthiness- use On-Bill Financing,the amount of the based on your SCE utility bill payment history. monthly loan payment will be offset by the bill savings resulting from your project. OBF Application Approval and Reservation Upon approve of your credit-worthiness On-Bill Financing loan funds will be On-Bill Fi7ne n Repayment reserved for your project,provided the funds are available and you have not reached the customer loan cap. Net Est Monthly realallll—Bill / reduction Equipment Pre-Inspection An SCE engineer or app roved third-party inspector will conduct an ( j-0BF L.an inspection of your existing equipment.if the existing equipment has been removed,your rolect will not be ell Ible for an On-Bill Financing loan,and / Paymonl p 9 may not be eligible for an SCE energy efficiency rebatelincentive. EstimaBill —New Rad.OEnergv Equipment Installation duelo Usnge Upon receipt of approval of your project application,you may install your Projecduem savings Project energy efficiency project. SeOngs Submit Installation Report Befpm EE Afar EE - FWh,n your project installation is complete submit an Installation Report form Prpiod Project CE.Pi e he far to the 2010 Statewide Manuals for Express Solutions or with OBF wM OBF tomized Solutions on wwa .see.com/onbilifor Terms and Conditions. EE—Energy Efficiency OBF—One.11 Financing Approval and Incentive Processing Once your installation is inspected and approved,SCE will process your incentive payment,finalize your On-Bill Financing Loan Agreement and send How to Apply it to you for signature. You must apply for On-Bill Financing online.To find out how this program OBF Funds Distribution can work for your organization, Upon receipt of your signed Loan Agreement,SCE will provide you with the contact your Account Representative On-Bill Financing loan proceeds. or visit tarww.sce.com/pnbill.Or call 1-800-736-4777. Mornhly Payments Begin Your first monthly zero-interest loan payment will ap=.u, SCE bill. This program is funded by California utility customers and administered by Southern California Edison under Me auspices of the California Public Utilities Commiacion.This program I.offered discontinued by the California ry P basis and is Utilities Coe until funding This is espentletl y the rem la BnU1HFRN C'ADR)RNU terminated without the mie Public Utilities Lommisaion.TM1ie pmpnm may be modified or D i^O. 1., 0 20i 0 So without prior notice. `J II`,1 m 3at0 Southern California Edison.All tights reserved. 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