COUNCILMEMBER DONNA FRYE
CITY OF SAN DIEGO
SIXTH DISTRICT

Memorandum

One of the ways for the City to pursue the Mayor's Goal #9, energy independence, and make San Diego a model city for renewable energy use, is through the installation of solar power systems and energy efficiency devices in City buildings.

One way to accomplish this objective is through a solar power revenue bond. A solar power revenue bond would be issued by the Council and purchased by investors, which would provide the City with the funds needed for the energy efficiency and solar projects. The bond would then be repaid by the City over approximately 20 years through energy savings and revenue generated by the solar installations - not through new taxes.

In addition to making San Diego cleaner and healthier, installing renewable energy and energy efficient systems will help build our local economy by creating local, sustainable jobs for electricians, contractors, and solar companies. San Diego has a burgeoning opportunity to develop a new industry in San Diego that will both create new high-quality jobs and increase tax revenue for the City.

In order to move forward in the City's analysis of pursing a possible solar revenue bond, it is critical that the City complete a feasibility study. This study would evaluate the general parameters of a bond package, including the program's proposed objectives and scope, the City's borrowing capacity and philosophy, an inventory of buildings and locations where solar and/or efficiency may be possible, a proposed financing plan, the approximate financing and transaction costs, the milestones for an implementation schedule, and other fundamental elements.

Once this feasibility study is performed, the City can assess whether this bond is a viable option for pursuing energy independence. Given the exciting possibility of accomplishing energy independence while building a new industry in San Diego and safeguarding public health and the environment, we urge the Rules Committee to move forward on this feasibility study without delay.

Thank you for your consideration of this request.