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2009122116DATE: TO: FROM: SUBJECT: MEETING DATE: 12-21-09 ITEM NO: 1 COUNCIL /AGENCY AGENDA REPORT December 14, 2009 MAYOR AND TOWN COUNCIL / CHAIR AND MEMBERS OF THE REDEVELOPMENT AGENCY GREG LARSON, TOWN MANAGER / EXECUTIVE DIRECTOR ADOPT A RESOLUTION AUTHORIZING THE TOWN OF LOS GATOS TO APPLY FOR FEDERAL STIMULUS FUNDING THROUGH THE ENERGY EFFICIENCY CONSERVATION BLOCK GRANT PROGRAM RECOMMENDATION: Adopt a resolution authorizing the Town of Los Gatos to apply for federal stimulus funding through the Energy Efficiency Conservation Block Grant program. BACKGROUND: On February 17, 2009, President Obama signed into law the American Recovery and Reinvestment Act (ARRA) which appropriated funds to the U.S. Department of Energy (DOE) for the Energy Efficiency Conservation Block Grant (EECBG) program. Under the EECBG program, DOE provides grant funds to states, territories, Indian tribes, and "large" cities and counties (populations above 35,000) through a direct formula based allocation. Because the Town of Los Gatos is defined under ARRA regulations as a small city (under 35,000 residents), funding was not available through this first round of allocations. However, the DOE required that no less than 60% of the funds received by states ($35.5 million to the State of California) be passed through to the eligible 265 small cities and 44 counties. As a result of this requirement, the California Energy Commission created an allocation formula based on population and county unemployment rates specifically for small cities and counties, whereby the Town of Los Gatos is eligible to receive up to $163,083. The Town must apply for these funds in accordance with the EECBG Grant Solicitation and Application Package. All applications are due by January 12, 2010. PREPARED BY: JESSICA VON BORCK, Economic Vitality Manager C:\Documents and Settings\lseastrom\Desktop\EECBG council report LG_l.doc i e Reviewed by: Assistant Town Manager/Deputy Director Town Attorney/General Counsel Clerk Administrator/Secretary 1'_ Finance Community Development PAGE 2 DECEMBER 14, 2009 MAYOR AND TOWN COUNCIL SUBJECT: ADOPT A RESOLUTION AUTHORIZING THE TOWN OF LOS GATOS TO APPLY FOR FEDERAL STIMULUS FUNDING THROUGH THE ENERGY EFFICIENCY CONSERVATION BLOCK GRANT PROGRAM DISCUSSION: The DOE encourages program applicants to pursue activities that result in maximum energy efficiency improvements, fossil -fuel emission reductions, economic benefits and total energy use reduction. Through the EECBG solicitation application, eligible communities can apply for funding to be used towards the direct purchase and installation of energy efficiency equipment. The application package references a direct purchase equipment list developed by the California Energy Commission (CEC). Staff is proposing to use the EECBG funds to retrofit the energy system (heating and air conditioning) in the existing library facility. The existing library facility was not included in last summer's retrofit of the energy system in the remainder of Town Hall due to the challenges of performing this work amid the operations and furnishings of the library and to the fact that the operation would be moving to the new library in two years. The retrofit would occur after the library operation moves to the new library, which fits within the timeframe of the grant opportunity. A new system in the existing facility will produce energy savings once the facility is remodeled for other municipal purposes. CONCLUSION: Staff is recommending the Town Council approve the resolution authorizing staff to apply for the available Federal stimulus funding through the Energy Efficiency Conservation Block Grant program in order to purchase energy efficient equipment for the proposed retrofit of the existing library. FISCAL IMPACT: The award of $163,000 Federal stimulus dollars will off -set some of the projected costs for the environmental modernization of the existing library building. Sufficient funds are available in the Building Facility Fund for the remaining costs. ENVIRONMENTAL REVIEW: The completion of this application is categorically exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15308 of the CEQA Guidelines (Actions by Regulatory Agencies for protection of the environment.) ATTACHMENT: Resolution authorizing the Town to apply for Federal Stimulus dollars through the Energy Efficiency Conservation program. RESOLUTION 2009- A RESOLUTION AUTHORIZING THE TOWN OF LOS GATOS TO APPLY FOR FEDERAL STIMULUS FUNDING THROUGH THE ENERGY EFFICIENCY CONSERVATION BLOCK GRANT 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, Energy Efficiency and Conservation Block Grant (EECBG) funds are available through the California Energy Commission's EECBG Program for grants to eligible local governments for cost-effective energy efficiency projects; and WHEREAS, the Town of Los Gatos is eligible for EECBG funding under the California Energy Commission's EECBG Program; and WHEREAS, the Town of Los Gatos is proposing to implement the energy efficiency project described in Exhibit A in order to qualify for EECBG 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 energy efficiency project described in Exhibit A; and NOW, THEREFORE, BE IT RESOLVED, that in compliance with the CEQA, the Town of Los Gatos finds that the approval of the energy efficiency project described in Exhibit A is a project under CEQA that is categorically exempt pursuant to Section 15308 of the CEQA Guidelines because the actions are being made by a regulatory agency for the protection of the environment RESOLVED FURTHER, that the Town of Los Gatos authorizes the submittal of the application to the California Energy Commission's EECBG Program for funds to execute the proposed project described in Exhibit A. RESOLVED FURTHER, if recommended for funding by the California Energy Commission, the Town of Los Gatos authorizes the Town of Los Gatos to accept a grant award up to the amount of this application for $163,083 and that Mr. Greg Larson, Town Manager, acting for the Town of Los Page 1 of 2 Gatos is hereby authorized and empowered to execute in the name of the Town of Los Gatos all necessary contracts and agreements, and amendments hereto, to implement and carry out the purposes specified in the application. PASSED AND ADOPTED at a regular meeting of the Town Council of the Town of Los Gatos held on the 21 st day of December, 2009 by the following vote: COUNCIL: AYES: NAYS: ABSENT: ABSTAIN: SIGNED: MAYOR OF THE TOWN OF LOS GATOS LOS GATOS, CALIFORNIA ATTEST: CLERK OF THE TOWN OF LOS GATOS LOS GATOS, CALIFORNIA Page 2 of 2 Exhibit A The Town of Los Gatos will be applying for EECBG funding to support the retrofitting of an existing civic building with energy efficient equipment. The building, constructed in 1964, is located within the Town of Los Gatos Civic Center and currently utilized for Library services. In the spring of 2010, the Town will begin construction on a new library facility in another location within the Civic Center. The existing facility will remain and be modified on the interior to meet the staffing and conferencing needs of the Town. The Energy Efficiency Conservation Block Grant funds will be used to directly purchase equipment that is consistent with the Direct Purchase List provided by the California Energy Commission as part of the Grant Solicitation and Application Package. Items from the following list that may be incorporated into the retrofit project as part of the grant application, but not limited to, are: high efficiency HVAC system replacement, programmable theiniostats, and dual technology occupancy sensors for all intermittently occupied spaces.