Energy efficiencyI oW N 0 MEETING DATE: 2/6/12
ITEM NO:
� sA COUNCIL AGENDA REPORT
DATE: JANUARY 27, 2012
TO: MAYOR AND TOWN COUNCIL
FROM: GREG LARSON, TOWN MANAGER
SUBJECT: ENERGY EFFICIENCY CONSERVATION BLOCK PROGRAM
ADOPT A RESOLUTION AUTHORIZING THE TOWN OF LOS GATOS TO
APPLY FOR FEDERAL STIMULUS FUNDING THROUGH THE ENERGY
EFFICIENCY CONSERVATION BLOCK GRANT PROGRAM PHASE 2.
RECOMMENDATION
Adopt a resolution authorizing the Town of Los Gatos to apply for federal stimulus funding
through the Energy Efficiency Conservation Block Grant Program Phase 2.
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
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. On June 25, 2009, the Energy
Commission submitted an application to DOE to receive authority to expend EECBG funds for
eligible projects. DOE awarded the EECBG grant to the Energy Commission on September 14, 2009.
In September 2010, the Town was awarded a grant from EECBG in the amount of $162,712 to
install energy efficient lighting in Town -owned parking lots and parks. At its regular meeting
held March 21, 2011, the Town Council authorized a contract be awarded to Republic ITS. The
lighting conversion project is in progress and scheduled to be completed by March 2012.
PREPARED BY : TODD CAPURSO
Reviewed by:
Director of Parks and Public Works
t Town Manager Town Attorney Finance
N:\PPw\MANAGEMENT \COUNCIL \COUNCIL REPORTS\2012 Reports\February 6 \EECBG Resolution Memo.doex
PAGE 2
JANUARY 27, 2012
MAYOR AND TOWN COUNCIL
SUBJECT: ENERGY EFFICIENCY CONSERVATION BLOCK PROGRAM
DISCUSSION
Under Phase 2 of the EECBG program, the Energy Commission will make available, on a first -come,
first- served basis, any unspent funds from the EECBG program. At the time of this solicitation
release, zero dollars are available. However, up to $10.0 million of program funding may be added if
and when it becomes available for this solicitation.
There are no minimum or maximum funding award restrictions. However, applicants must certify
that the proposed project can be completed and all allocated funding can be spent by September 13,
2012. Eligible projects include street light, traffic signal, and pedestrian signal conversion to LED
technology. The Town has already converted all traffic and pedestrian signals to LED, therefore the
only remaining eligible project would be a street light conversion. Staff has identified street light
conversion as a future capital project, and the receipt of these grants funds would allow staff to move
forward with this project in FY 2012/13.
CONCLUSION:
Staff recommends that the Town Council approve a resolution authorizing the Town of Los
Gatos to apply for federal stimulus funding through the Energy Efficiency Conservation Block
Grant Program Phase 2.
FISCAL IMPACT:
The award of the allocated Federal stimulus dollars will partially or fully fund the projected costs
of street lighting retrofits. The estimated annual operational cost savings associated with a fully
implemented LED streetlight conversion is in excess of $100,000 annually.
ENVIRONMENTAL REVIEW:
The recommended action is not a project as defined under CEQA, and no further action is
required.
ATTACHMENTS:
1. Resolution authorizing the Town of Los Gatos to apply for and accept grant funds through
the Energy Efficiency Conservation Block Grant Program Phase 2 (Exhibit A — Project
Description)
RESOLUTION 2012 -
RESOLUTION OF THE TOWN COUNCIL OF THE
TOWN OF LOS GATOS AUTHORIZING
THE TOWN OF LOS GATOS TO APPLY FOR
FEDERAL STIMULUS FUNDING THROUGH THE
ENERGY EFFICIENCY CONSERVATION BLOCK GRANT PHASE 2 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 Phase 2 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 /s
described in Exhibit A in order to qualify for EECBG Phase 2 funds from the California Energy
Commission.
NOW, THEREFORE, BE IT RESOLVED, that the Town of Los Gatos authorizes the
submittal of the application to the California Energy Commission's EECBG Phase 2 Program for funds
to execute the proposed project described in Exhibit A.
BE IT FURTHER RESOLVED, 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 $947,500 and the Town Manager 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 6th day of February, 2012 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
Exhibit A
Proiect Description
The Town of Los Gatos will be applying for EECBG funding to support the retrofitting of 1,535 Town -
owned street lights from high pressure sodium, mercury vapor, and metal halide to LED lighting. The
Town will purchase the equipment and hire a contractor to perform the installation. If grant funding is
awarded, staff will immediately move forward with the purchase of the equipment and the selection of a
contractor. This project can be completed in phases, depending upon available funding. Work on this
project would be completed by August 30, 2012.
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