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2010081603 - federal stimulus funding through the energy efficiency conservation block grant program~pW N OF ,r"-~' ms's COUNCIL AGENDA REPORT ~g GpSO DATE: August 16, 2010 TO: MAYOR AND TOWN COUNCIL MEETING DATE: 08/ 16/ 10 ITEM NO: FROM: GREG CARSON, TOWN MANAGER ~V~`" CG~~~ SUBJECT: ADOPT A RESOLUTION RESCINDING RESOLUTION 2009-137 AND 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 rescinding resolution 2009-137 and adopt a resolution authorizing the Town of Los Gatos to apply for federal stimulus funding through the Energy Efficiency Conservation Block Grant program (EECBG). BACKGROUND: On February 17, 2009, President Obama signed into law the American Recovery and Reinvestment Act (ARRA) which, for the first time, 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, funding was not available through this first round of allocations. However, the DOE required that no less that 60% of the funds received by states ($35.5 million to the State of California) be passed through to the eligible 265 small cifies and 44 counties. As a result of this requirement, the California Energy Commission (CEC) created an allocation formula based on population and county unemployment rates, whereby the Town of Los Gatos is eligible to receive up to $163,083. The Town had to apply for these funds in accordance with the EECBG Grant Solicitation and Application Package. All applications were due January 12, 2010. As part of the application requirements, on November 2, 2009, the Town Council adopted a resolufion to authorize the Town to apply for federal stimulus funding through the PREPARED BY: JESSICA VON BORCK, Economic Vitality Manager \Ueona\useis\jvonbomk\My Documen[sWRRA\EECBG revised council reprnt.doc \,~~(j~ ~. :_ e Reviewed by:1 ~J Assistant Town Manager ~~ w~`I`own Attorney Clerk Adminishator_~1 Finance Coznmunitybevelopment PAGE2 AUGUST 16, 2010 MAYOR AND TOWN COUNCIL SUBJECT: ADOPT A RESOLUTION AUTHORIZING THE TOWN OF LOS GATOS TO APPLY FOR FEDERAL STIM[JLUS FUNDING THROUGH THE ENERGY EFFICIENCY CONSERVATION BLOCK GRANT PROGRAM EECBG program (Attachment 1) to retrofit the existing library space with energy efficient equipment. Town Staff submitted a complete application to the CEC on January 5, 2010. DISCUSSION: The Town's application for $163,000 in EECBG funds was received by the CEC in January 2010. Applicants were requested to indicate if their application was for a direct. equipment purchase project or an energy efficiency project. Staff chose to submit a direct equipment purchase project. In Apri12010, the Town was informed by the CEC that the Town's application was denied because not all of the equipment identified fell within the direct purchase standards as per the CEC's interpretation. The CEC asked that the Town reapply for an energy efficiency project or work with the CEC's Technical Advisory team to identify other possible projects. As a result, staff worked with the Technical Advisory team from the CEC and was able to identify alternate projects that would classify as a direct purchase project. Staff resubmitted the application and the Town was awarded $162,762.12 in May 2010. To complete the award process, the Town is required to adopt a revised resolution correctly reflecting the revised scope of the work (Attachment 2). CONCLUSION: Staff recommends the Town Council rescind the resolution 2009-137 and approve the resolution authorizing staff to apply for the available Federal stimulus funding through the Energy Efficiency Conservation Block Grant program as described in Exhibit A of the resolution (Attachment 2). FISCAL IMPACT: The award of the allocated Federal stimulus dollars will fund projected costs of lighting replacement in civic parking lots, parks, and HVAC replacement in the existing Library facility. In addition, the operational cost savings from the replaced lighting is estimated to be $12,550 annually. Attachments: Attachment 1: Resolution 2009-137 Attachment 2: Revised Resolution and Exhibit A RESOLUTION 2009-137 A RESOLUTION AUTHORISING THE TOWN OF LOS GATOS TO APPLY FOR FEDERAL STIMULUS FUNDING THROUGH THE ENERGY EFFICIENCY CONSERVATION BLOCK GRANT PROGRAM WI-IEREAS, 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 Tow. n 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 thatrs categorically exempt pursuant to Section 15308 of .the CEQA Guidelines because the actimis 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. ATTACHMENT 1 RESOLVED I+URTHER, 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 Gatos is hereby authorized and empowered to execute in the name of the Town of Los Gatos all necessary conhacts and agreements, and amendments hereto, to implement and. carry out the proposes specified in the application. PASSED AND ADOPTED at a regular meeting of the Town Council of the Town of Los Gatos held on tihe 21st day of December, 2009 by the following vote: COUNCIL: AYES; Joe Pirzynslci, Steve Rice, Barbara Spector, Milce Wasserman, and Mayor Diane McNutt NAYS: None ABSENT: None ABSTAIN; None SIGNED: MAYOR Or THE TOWN OF LOS GATOS LOS GATOS, CALIFORNIA ATTF T: ~q~as~ CLE C OF HE TOWN OF LOS GATOS LOS GA S, CALIFORNIA Exhibit A The Town of Los Gatos will be applying for EECBG Funding to support the reh~ofitting of an existing civic building with. energy efficient equipment, The building, constructed in 1964, is located wifltht the Town of Los Gatos Civic Center and currently utilized for Library services. hi the spring of 2010, the'1 own 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 cotrFerencing needs of the Town. The Energy Efficiency Conservation Block Grant funds will be used to directly pm•chase equipment that is consistent with the Direct Purchase List provided by the California Energy Commission as part of the Gtatrt Solicitation and Application Package. Items from the following list that may be incorporated into the retrofit project as parC of the grant app]ication, but trot limited to, are; high efficiency I1VAC system replacement, programmable thennosfats, and dual teelutology occupancy sensors for.all intermittently occupied spaces. RESOLUTION 2010- A RESOLUTION RESCINDING RESOLUTION 2009-137 AND ADOPT 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 direct purchase project described iri 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 direct purchase project 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 direct purchase 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 arnourit of this application for $163,083 and that Mr. Greg Larson, Town Manager, acting for the Town of Los Page 1 of 2 ATTACHMENT2 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 16th day of August, 2010 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 has applied for EECBG funding to support direct purchase projects such as: 1) retrofitting an existing civic building (Library) with energy efficient equipment; and 2) replacement lighting in 10+ civic parking lots, 6+ parks including path and entrance lighting. The Library building, constructed in 1964, is located within the Town of Los Gatos Civic Center and the proposed parking lots and park paths/entrances are listed here: • Lot 1 : between Bachman and Los Gatos/Saratoga Road, University Avenue and North Santa Cruz • Lot 2 and 3 : between Bachman and Royce/Grays, University Avenue and North Santa Cruz • Lot 4 : between Grays and Elm, University Avenue and North Santa Cruz • Lot 5 : between Elm and West Main, University Avenue and Santa Cruz • Montebello Lot:East of South Santa Cruz and south of Montebello Avenue • .Lot 7 : south. of West Main. Street at end. of .Park Avenue • Lot 8 : On Main Street between Jackson and Alpine • Corporation Yard, Town of Los Gatos : 41 Miles Avenue, Los Gatos, CA • Balzer Field and Parking Lot: 41 Miles Avenue, Los Gatos, CA • Bachman Park path :401 Bachman Avenue, Los Gatos, CA • Blossom Hill Park path/restrooms :16300 Blossom Hill Road, Los Gatos, CA • Howes Playlot path :Between Howes and Thomas Drive, near Anne Way • La Rinconada Park path : Corner of Wedgewood Avenue and Granada Way • Live Oak Manor Park path & gazebo : Corner of Carlton Avenue and Gateway Drive • Oak Meadow Park path, entrance, & restroom :233 Blossom Hill Road The Library facility located at 110 East Main Street in Los Gatos was constructed in 1964. There will be neither any ground disturbances nor any exterior fagade modifications due to the replacement of the HVAC unit. It will be installed in the exact location that the older unit will be removed fi~om therefore, it will not involve any interior modifications either. There will be no structures involved with the replacement lighting projects throughout the identified parks and public parking lots. 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, replacement of florescent lighting with induction and LED Cobra head lighting.