2010-014-(2 resos) Authorizing Sacramento County California FirstRESOLUTION 2010-014
RESOLUTION OF THE TOWN COUNCIL OF THE TOWN OF LOS GATOS
AUTHORIZING SACRAMENTO COUNTY TO SUBMIT A COLLABORATIVE
APPLICATION ON ITS BEHALF TO THE CALIFORNIA ENERGY COMMISSION
FOR STATE ENERGY PROGRAM FUNDS FOR THE CALIFORNIAFIRST
PROGRAM
WHEREAS, the Town of Los Gatos recognizes that it is in the interest of the regional,
state, and national economy to stimulate the economy; create and retain jobs; reduce fossil fuel
emissions; and reduce total energy usage and improve energy efficiency within our jurisdiction;
and
WHEREAS, State Energy Program (SEP) funds are available through the California
Energy Commission's SEP for grants to eligible local governments for energy efficiency, energy
conservation, renewable energy, and other energy related projects and activities authorized by
the American Recovery and Reinvestment Act of 2009 ("ARRA"); and
WHEREAS, SEP allows for cities, counties, or groups of cities and counties in
California to apply for SEP funds on behalf of eligible local governments; and
WHEREAS, the Town of Los Gatos is eligible for SEP funding under the California
Energy Commission's SEP; and
WHEREAS, the Town of Los Gatos is proposing to collaborate with Sacramento County
to implement a program for financing the energy efficiency, energy conservation, renewable
energy, and other energy related projects and activities authorized by ARRA, which program is
described in Exhibit A for the purpose of qualifying for SEP funds from the California Energy
Commission; and
WHEREAS, the Town of Los Gatos has considered the application of the California
Environmental Quality Act (CEQA) to the approval of the program for financing energy
efficiency, energy conservation, renewable energy, and other energy related projects and
activities authorized by ARRA described in Exhibit A.
NOW, THEREFORE, BE IT RESOLVED THAT:
In compliance with the CEQA, the Town of Los Gatos finds that the approval of the
program for financing energy efficiency, energy conservation, renewable energy, and
other energy related projects and activities authorized by ARRA described in Exhibit A is
not a "project" under CEQA, because the program does not involve any commitment to a
specific project which may result in a potentially significant physical impact on the
environment, as contemplated by Title 14, California Code of Regulations, Section
15378(b)(4)).
2. The Town Council of the Town of Los Gatos authorizes Sacramento County to submit a
collaborative application on its behalf to the California Energy Commission for up to
Sixteen Million Five Hundred Thousand Dollars ($16,500,000) in SEP funds for the
program for financing energy efficiency, energy conservation, renewable energy, and
other energy related projects and activities authorized by ARRA described in Exhibit A.
If recommended for funding by the California Energy Commission, the Town of Los
Gatos authorizes Sacramento County to accept a grant award on its behalf and to enter
into all necessary contracts and agreements, and amendments thereto, on its behalf to
implement and carry out the program for financing the project/s described in Exhibit A.
PASSED AND ADOPTED at a regular meeting of the Town Council of the Town of Los Gatos,
California, held on the lit'" day of ~0.nuary, 2oio by the following vote:
COUNCIL MEMBERS:
AYES: Joe Pirzynski, Steve Rice, Barbara Spector, Mike Wasserman and Mayor Diane
McNutt
NAYS:
ABSENT:
ABSTAIN:
SIGNED:
~I~G Mew
MAYOR OF THE TOWN OF LOS GATOS
LOS GATOS, CALIFORNIA
A TEST:
w
LERK F THE 'I'OtiVN OF LOS GATOS
L OS, CALIFORNIA
Exhibit A
California Energy Commission State Energy Program
CaliforniaFIRST Collaborative Proposal
Summary of Proposal Scope & Budget Framework
Description of Program Proposal
Under the lead applicant, Sacramento County, the 14 counties eligible to participate in the pilot
stage of the CaliforniaFIRST Program are collaborating on a proposal to the California Energy
Commission State Energy Program for a grant of up to $16.5 million. The grant funds will be
used to offset initial fees associated with bond issuance, start-up costs for the 14 counties and all
incorporated cities, an interest rate buy-down, local marketing/education/training/outreach, local
coordination, and grant administration to support the launch of the CaliforniaFIRST municipal
financing program.
CaliforniaFIRST Program County Participants and Proposal Collaborators
/ Alameda
/ Fresno
/ Kern
/ Monterey
/ Sacramento
/ San Benito
/ San Diego
/ San Luis Obispo
/ San Mateo / Ventura
/ Santa Clara / Yolo
/ Santa Cruz
/ Solano
Budget Basics
1. CaliforniaFIRST financing costs and fees (~$6M)
Guided by California Communities and the CaliforniaFIRST Program Administrator Renewable
Funding, this program element will:
• buy-down the interest rate on the initial round(s) of projects financed by the
CaliforniaFIRST Program,
cover fixed costs associated with initial bond counsel, bond disclosure, fiscal agent and
bond rating,
cover legal and validation costs, and
cover the deployment of technology (web portal) to support local programs.
2. Grant/Contract Administration & Steering Committee Liaison: (~$2.OM)
On behalf of the applicant agency, grant/contractor administration duties include gathering
relevant reporting information from all partner jurisdictions and CaliforniaFIRST, financial
oversight and invoicing, contract administration, tracking, monitoring, and oversight of
deliverables. In addition, the grant administrator will serve as the partner liaison between all
participating steering committees to maintain coordination and consistency on the local
marketing efforts between parties as well as provide marketing and contract technical assistance,
training, and advice to participating agencies. The Grant Administrator will also coordinate local
efforts with those programs funded under the California Comprehensive Residential Building
Retrofit Program.
3. Regional Program Coordination & Marketing: (~$8.SM)
In line with the overall project goals, funding has been budgeted on a regional basis to each of
the six primary program regions in the following amounts, based on total number of Courities:
• Capitol Region (Sacramento/Yolo): $1,800,000
• Central Valley Region (Fresno/Kern): $1,150,000
• Bay Area Region: (Alameda/San Mateo/Santa Clara/Solano): $2,300,000
• North Central Coast Region: (Monterey/Santa Cruz/San Benito): $1,725,000
• South Central Coast Region: (Ventura/SanLuis Obispo): $1,150,000
• Southern California Region: (San Diego): $575,000
This final program element serves to provide each region with the resources necessary to help
facilitate the rapid adoption of energy efficiency and renewable energy generation system
installations throughout the target area by connecting property owners to any and all available
on-the-ground or proposed resources, and services, providing a streamlined framework for easy
navigation, reduced out-of-pocket expenses, and overall increased cost effectiveness for both
participants and the program overall. The focus of the program will be to create region-wide (or
county-wide, where appropriate) cooperative project design, implementation, marketing, and
coordination to maximize economies of scale, take advantage of overlapping markets, and
ultimately allow each dollar to go further to benefit all parties.
Financing Costs and Fees
A. Financing Costs
As Program Administrator of the California Communities CaliforniaFIRST Program, Renewable
Funding will coordinate and provide program administration, financing, and legal services to
support a robust statewide municipal financing program. Specific financing costs are
concentrated at the start of the program and result in increased fees to a program participant, and
therefore a higher effective interest rate. In order to lower the interest rate, the SEP funds will be
used to cover bond disclosure counsel, bond rating fees, and a bond fiscal agent. In addition, a
direct interest rate buy-down will be employed to achieve a bond rate that is equivalent to an A-
rated bond, which is likely to be the bond rating later in the program.
B. Set-up Fees
A funding request equivalent to the city and county set-up fees will be included in the proposal.
The costs for initial legal work and validation proceedings will be covered by this request.
Additionally, the costs of establishing county web portals, importing local assessor's data, and
maintaining the website will be part of this funding request.
Su~~ested Maior Marketing Program Coordination & Marketing Program Elements
A. Agency Coordination /Steering Committee Participation
In recognition of the additional coordination time required to get new programs off the ground,
individual counties may elect to include a modest amount of staff time for agency representatives
to participate in the program steering committee and other activities to drive marketing program
design, educational/marketing material development, form and protocol development, etc. By
investing this time at the onset, we are able to develop aself-sustaining program for the long
term. County agencies (that is, auditor/tax collector/controller) will receive a small percentage,
incorporated into each loan, to cover regular ongoing program administration costs associated
with maintaining the tax roll and collecting annual assessments in years beyond the grant term.
Some jurisdictions may instead wish to contribute this time as project leveraged funds/resources
to increase overall program cost effectiveness based on their individual needs and resources.
Regional partnership may also elect to use a portion of the resources from this program element
toward informal or formalized staff/.personnel training within their jurisdictions.
B. Education /Outreach/ Marketing
Successful program adoption requires thoughtful design, convenient procedures, and a robust
program education component to encourage and energize program participation. Achieving this
goal, the project team will create clear, consistent, and thematic program branding imagery,
educational and recruitment tools such as program brochures. The program will be supported by
the CaliforniaFIRST web portal and links to new and existing partner and complementary
websites, frequently asked questions, applications, and/or other program materials. In addition,
the project will engage awide-stretching network of partners to promote, recruit, and
disseminate program information utilizing existing mechanisms of door-to-door outreach,
community event tabling, workshops and presentations, or other appropriate energy efficiency
and complementary program participation activities. Major elements might include:
/ Outreach Promotional Materials: Brochures, Door-hangers, Postcard Mailers, Bill Inserts,
etc.
/ Program Marketing Advertisements: Print Ads, Radio/TV Ads, PSA Production
/ Promotional Outreach Events, Trade Shows or Community Workshops
/ Homeowner/Business/Contractor/Staff Training Seminars
/ Sustainability Site Signage
/ Green Building and/or LEED Certification Technical Assistance
C. Community Coordinator /Partner Liaison /Supplies
The community coordinator is envisioned to serve as the single point regional program
coordinator to unify, inform, collaborate, and engage all program parties in relation to local
coordination and marketing efforts; respond to public inquiries; facilitate the education, outreach,
marketing, recruitment; and promote program adoption by the target community. In addition the
coordinator is responsible for coordinating with the grant administrator, tracking/reporting
necessary progress and metrics, meeting/exceeding grant milestones and targets, incorporating
required complementary program components, and working with CaliforniaFIRST to assure
QA/QC measures are applied to all participating properties. Specific tasks will be driven by the
overall project goals as well as the specific needs of each region and may include:
/ Coordination with Grant Administrator/Steering Committee Liaison
/ Marketing Coordination with CaliforniaFIRST Municipal Finance District
/ Facilitation of local Regional Steering Commmittee Members and Partners
/ Assist with Implementation Strategy, Documents, Procedures & Protocols Development
/ Guide Promotion, Marketing, Education, Recruitment & Program Information
Dissemination
/ Link Program Participants to Regional Energy Efficiency & Complementary Programs
/ Connect to Concurrent Complementary Workforce Development Training/Graduates
/ Administer Regional Program Budget, Competitive Bidding, Other Program Transparency
Regs
/ Track and/or compile, Monitor & Evaluate Program Progress, Energy Savings, GHG
Reductions Achieved, Partner Leveraged Funds and Ancillary Environmental Benefits
Sample County Budget
A sample budget based on the above framework is provided below. Please note that these
amounts are subject to change based on the actual needs of each participating jurisdiction as well
as feedback obtained regarding fonder and partner thresholds for competitiveness.
Coaaa oraerat
®verald (dross Peaaefit
Per Couia Net Petaefat
Per Coosa
1.CaliforniaFIRST Costs & Fees 39% $ 428,571.43 -
2. Grant Administration & Technical Assistance 10% $ 107,142.86 -
3A.Steering Advisory Committee 10% $ 115,000.00 $ 115,000.00
3B. Education, Outreach, Incentives, Marketing 23% $ 258,750.00 $ 258,750.00
3C. Community Coordination 18% $ 201,250.00 $ 201,250.00
Total 100% $1,110,714.29 $ 575,000.00
Grant Development Team:
County of Sacramento-Lead Agency (Applicant), will oversee grant writing, provide final
edits and required signatures, and submit finalized~proposal on behalf of entire collaborative
team based on the approved proposed program scope and budget framework
Ecology Action-Partner Grant Writer (Lead on Marketing), will develop narrative based on
proposed program scope and budget framework, especially as it pertains to local coordination
and marketing project administration, marketing/contract technical assistance, regional
coordination, and marketing, to meet all grant requirements and maximize proposal
competiveness.
Renewable Funding-Partner Grant Writer (Lead on Finance), will develop narrative based
on proposed program scope and budget framework, especially for CaliforniaFIRST Program
finance-related program elements, to meet all .grant. requirements and maximize proposal
competiveness.
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