HomeMy WebLinkAbout2006/12/12 Item 4
~~~
~
~~-c....::
- -
CITY COUNCIL MEETING
AGENDA STATEMENT
Item: '-i
Meeting Date: DECEMBER 12,2006
ellY OF
CHUlA VISTA
ITEM TITLE:
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA
VISTA APPROPRIATING $376,700 F.OR FISCAL YEAR 2007 TO
THE ENERGY CONSERVATION FUND FOR THE SAN DIEGO
GAS AND ELECTRIC (SDG&E) ENERGY PARTNERSHIP GRANT
PROGRAM
REVIEWED BY:
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA
VISTA AMENDING THE 2006 APPROPRIATION TO PROVIDE
ENERGY EFFICIENCY SERVICES FOR COMMERCIAL AND
RESIDENTIAL FACILITIES THROUGH DECEMBER 31, 2006
Director of Conservation & Enviroplflerrtal-S,ervices ~
Environmental ~ource Manager...... h-r;?" j
City Manager d I (4/5ths Vote: Yes..x... No _)
SUBMITTED BY:
On September 19, 2006, the City Council accepted the grant and appropriated funding
for the 2006 calendar year of the SDG&E partnership program to the 2007 fiscal year.
Approval of this $376,700 appropriation for the second calendar year of the grant cycle,
January 1 through December 31, 2007, to the 2007 fiscal year, will enable the City to
continue the partnership with SDG&E, residents and local businesses to reduce the
amount of gas therms and electricity kilowatts consumed by the public - programs that.
complement the City's long-standing commitment to the prevention of global warming
and the environment. Staff is also requesting changes in the 2006 calendar year grant
budget primarily to accommodate finance protocols for reimbursement of staff time to
execute the grant. The total grant provides $2,193,225 over a three-year period ending
in December 31,2008.
Chula Vista is a leader in fostering partnerships that enable the City staff to implement
energy efficiency programs. The second year of grant funding makes it possible for the
City to continue education/outreach and marketing support to reduce the amount of
kilowatts (electricity), therms (gas) and water consumed by customers that are either
not fully participating or not eligible for existing programs. The Grant provides funding
for some additional private sector and City facility savings to encourage their increased
participation. This portion of the 2007 calendar year grant budget provides
Conservation & Environmental Services with approximately $179,000 to implement
residential and commercial public outreach and retrofit programs, and $196,000 for
Community Development to implement model energy design and efficiency projects
with the remaining $196,000. General Services will return to Council in the near future
to appropriate all or part of its 2006 and 2007 calendar year funding ($354,375 per year)
to implement City infrastructure investments.
4-1
Page: 2 of 5
Meeting Date: December 12, 2006
RECOMMENDATION: That the City Council adopt the resolutions: (1) appropriating
$376,700 ($17,410 to Personnel Services, $286,937 Supplies and Services and
$72,353 to Other Expenses) for Fiscal Year 2007 to the energy conservation grant fund
to reimburse the General Fund for staff time associated with implementing the grant;
and (2) amending the Fiscal Year 2007 grant fund budget, adopted previously, by
transferring $25,500 from the Supplies and Services Category to the Other Expenses
category of the energy conservation grant fund.
BOARDS/COMMISSIONS RECOMMENDATION: Staff presented the grant award and
program to the Resource Conservation Commission (RCC) on September 18, 2006,
and the RCC was very supportive of the program.
BACKGROUND:
Public Goods Charges are collected from a monthly utility bill surcharge of
approximately $0.05 per gas therm and $0.006 per electric kilowatt consumed by every
customer in the SDG&E service territory. The Public Goods Charges are used to
implement Public Purpose Programs, including but not limited to residential and
commercial energy efficiency and conservation programs. The October 2004
Memorandum of Understanding between SDG&E and the City provides that SDG&E
involve the City more directly in the development and delivery of $2,000,000 in annual
Public Purpose Programs funded by Public Goods Charges to ensure that Chula Vista
residents and businesses have access to their fair share of Public Goods Programs,
and that future programs meet their needs,
Since the September 2006 calendar year grant appropriation, Conservation &
Environmental Services (CES) staff have gone through training and have begun to visit
Chula Vista businesses, To date, approximately 25 of the 50 businesses CES staff has
visited are taking advantage of free compact fluorescent lamps and at least 15
businesses are arranging for free pre-rinse spray valve installations (Attachment 1).
The pre-rinse spray valve program helps food service facilities reduce energy and water
consumption. The program includes a partnership with the County Water Authority and
its Chula Vista member agencies, which fund approximately $65 towards the spray
valve purchase and installation costs per business. The hourly CES staff funded by the
grant is also working with the Sweetwater High School District to install 21 pre-rinse
spray valves at their facilities this month. CES staff is working with SDG&E and their
subcontractor to install as many as 430 pre-rinse spray valves over the next few
months. Each business is also offered the opportunity to schedule a free no obligation
energy audit.
DISCUSSION:
The City and SDG&E have worked with the California Public Utilities Commission
(CPUC) to directly involve the City in more effectively delivering energy efficiency,
conservation, demand management and alternative energy programs to Chula Vista
residents, businesses and City facilities. SDG&E has submitted a program model to the
CPUC that allows the City to expand its participation in energy efficiency services for
4-2
Page: 3 of 5
Meeting Date: December 12. 2006
targeted residential, mixed-use and small commercial energy consumers, as well as
City facilities. The Grant proposal submitted by SDG&E and approved by the CPUC
establishes four program areas of responsibility:
1. Energy Efficiency Housing Project (small businesses to be added)
2. City Facilities Energy Efficiency and Demonstration Project
3. Peer-to-Peer Energy Education Project
4. Public Outreach Project
1. Small Business. Housino and Mixed Use Enerov Efficiencv Proiect
Conservation & Environmental Services Department (Conservation) will receive up to
$290,000 in funds each calendar year through 2008 to implement this component of the
program. SDG&E submitted this component to the CPUC as a condominium
conversion program. Chula Vista staff and SDG&E have agreed to obtain CPUC
approval to establish a new focus on direct residential and small business services.
This program area has the most specific and strict minimum energy savings
requirements and is tasked with implementing programs that reduce energy
consumption by approximately 3.8 million kilowatt hours by 2008. The Conservation &
Environmental Services Department will utilize the revised 2006 grant calendar year
budget and $94,000 of the 2007 grant calendar year budget to create the energy
savings. Conservation and Environmental Services is working closely with Community
Development to use the remaining $196,000 to target commercial, residential low
income, and mixed-use building projects that provide the best opportunity to:
1) demonstrate the maximum achievable energy conservation and design concepts
being developed by the National Energy Center; 2) reflect the City's environmental
goals; 3) bring added value to residential and commercial electricity ratepayers; and
4) have the best chance of being constructed by December 2008.
In spring of 2007, CES staff will begin its effort to provide compact fluorescents and
energy audits for as many as 1,500 residential dwellings over the next two years.
During those visits, CES staff will also promote grass roots participation in the backyard
habitat initiative (Nature Scape), tree planting (urban heat island effect), water
conservation and other community-based environmental initiatives by other City
departments.
A significant portion of the $290,000 in funding for this program component is dedicated
funding for incentive payments and services to buy down the cost of direct assistance to
residential and commercial facilities. Like the 2006 calendar year budget, the proposed
2007 grant calendar year budget provides funding for hourly personnel to facilitate
greater participation in targeted residential and small business energy efficiency
programs. Just as approved by Council in September of this year, the personnel for this
component would be temporary and are not planned to continue beyond the term of this
grant or future grant cycles. The 2007 grant calendar year budget aiso funds a
representative portion of City staff time used to manage the program, approximately
$72,000. Together these funds can be used to complement but not duplicate a number
4-3
Page: 4 of 5
Meeting Date: December 12. 2006
. of valuable CPUC/SDG&E funded incentives that will produce net monthly savings for a
number of targeted commercial and residential facilities in a very short period of time.
The success of this component is critical to the success of the entire grant and future
CPUC funding for Chula Vista. With adequate resources, staffs success will make a
strong statement to the CPUC that Chula Vista continL,tes to be a performance and
policy leader in the region, and that the City is the key to bringing substantial added
value to local ratepayers and SDG&E/CPUC Public Purpose Programs. That level of
success for this component will almost guarantee that there is some level of local
control to ensure that Chula Vista businesses, residents and City facilities receive their
fair share of these valuable incentives and services in the future.
2. City Facilities Enerqv Efficiencv Proiect
General Services plans to submit their recommended program design and appropriation
to Council in the near future for up to $354,375 in grant funding for each of the 2006 and
2007 calendar years.
3. & 4. Peer-to-Peer Enerqv Education & Public Outreach Proiects
This appropriation provides Conservation and Environmental Services with $86,700 in
grant funds for the 2007 calendar year to implement this component of the program.
The grant also provides another calendar year funding for 2008. According to SDG&E,
South Bay cities have continually expressed their desire to participate in energy
efficiency programs available from SDG&E. SDG&E also reports that competing
priorities have not allowed South Bay cities staff to dedicate adequate time or resources
to developing the institutional expertise needed to pursue energy retrofit projects. The
Peer-to-Peer Project would provide information, technical assistance and support to
access existing CPUC and SDG&E incentives and help agencies develop their own
Energy Action Plans in preparation for future funding opportunities. The goal of the
Peer-to-Peer project will include at least two targeted workshops for decision-makers
and project management staff, and a mentoring program with their Chula Vista
counterparts in General Services, Conservation and other departments. Conservation
also plans to use the trained hourly project personnel to help South Bay Cities market
SDG&E incentives for some of their targeted business retention programs and assist
with the expansion of local residential programs like the compact fluorescent and
torchiere lamp distribution programs. Conservation has made an initial contact with
South Bay cities and hopes to build on future successes by including other Chula
Vista/South Bay agencies over the grant term.
The Public Outreach Component of the Grant focuses on marketing residential
programs to eligible residents in Chula Vista that are not subscribing to the programs.
The CPUC/SDG&E portfolio of residential programs provides a variety of valuable
programs that can help reduce energy consumption, lower monthly energy costs and
contribute significantly to Chula Vista's commitment to the prevention of Global
Warming and related environmental goals. The funds for these programs come from
ratepayers, and Chula Vista ratepayers are not taking full advantage of that opportunity.
Conservation will also dedicate some hourly personnel resources to providing technical
4-4
Page: 5 of 5
Meeting Date: December 12. 2006
assistance to help potential participants access services. This component will also
identify and record. the barriers to participation to make recommendations for future
program modifications that foster greater participation. The personnel for this project
component are hourly and are not planned to continue beyond the term of this grant or
future cycles.
Public Purpose Charges are an investment that can be managed to help reduce energy
consumption, lower ratepayers' monthly energy costs, produce a local and regional
economic development advantage and contribute significantly to Chula Vista's long
standing commitment to the environmental and public health objectives. Broad
adoption and consistent implementation of energy conservation and efficiency
measures are a critical complement to an effective transition from fossil fuels to
renewable energy. Energy conservation and efficiency can reduce the demand for
energy, generated with fossil fuel sources, and thus reduce the C02, other green house
gases and particulates that contribute to global warming, asthma and other public health
and environmental impacts.
The Energy Efficiency and Outreach Program grant provides $2,193,225 in funding to
recover costs for developing and implementing the program from January 1, 2006
through December 31, 2008. SDG&E submitted and received grant approval from the
CPUC for their regional program based on the general program areas described above.
Staff is submitting the proposed appropriation for the 2007 grant calendar year and
amendment for the 2006 grant calendar year program budget for Council's review and
approval. If Council approves staff recommendation, CES staff will: 1) begin to
implement the 2007 grant objectives in January; and 2) make the necessary budget
adjustments to accommodate staff time reimbursements for grant management and
SDG&E's assistance with a spray valve installation contractor. Additionally, CES staff
would return to Council in late 2007 to appropriate funding for the 2008 grant calendar
year. The Grant allows the City to request funding quarterly, in advance, or by
reimbursement. CES staff is working with the Finance Department and SDG&E to
review the process and pursue advance payment.
DECISION MAKER CONFLICTS: Staff has reviewed the decision contemplated by this
action and has determined that it is not site specific and consequently the 500 foot rule
found under the California Code of Regulations Section 18704.2(a)(1) is not applicable
to this decision.
FISCAL IMPACTS: The City Council's approval of staffs recommendation will require
an appropriation of grant funds to the SDG&E Energy Partnership Program in the
amount of $376,700. The grant provides for $72,353 to offset existing General Fund
staff costs associated with implementing the grant in Conservation & Environmental
Services ($46,250) and Community Development ($26,103). The grant is also
projected to produce energy savings for City facilities that will phase in over the grant
term, and continue beyond the agreement. General Services will present estimates of
those savings in their report.
4-5
A TT AC H-,vlI,!,r(r
FREE Pre-Rinse Spray Valves!
Brought to you from The City of Chula Vista &SDG&E@
Replace your old, inefficient commercial kitchen sprayers with new pre-rinse
spray valves compliments of the City of Chula Vista and SDG&E",
LIMITED TIME OFFER!
:,..,@.,.,
.":";'-" "":"'"
.IiL. '.
W
Call 619-409-3893 or email Conservation@ci.chula-vista.ca.us to get your FREE pre-rinse
spray valves today. Hurry, this offer is available through March 31, 2007 or.while supplies last.
These high-velocity, high-efficiency spray valves can help your business save up to $1,050 per
year in water, energy and sewer costs (see chart below). And best of all, you can get as many as your business needs
at NO COST TO YOU-sprayer and installation included. In addition, you will receive a free preliminary energy
survey to identify other potential energy savings and rebate opportunities in your business.
Savings Estimates
Hours of ~pray
Valve Usage
Water/Waste
Water Savillgs
gallons/day
60 gallons
120 gallons
180 gallons
1 hour/day
2 hours/day
3 hours/day
Gas
Savings
therms/day
0,5 therms
1.0 therms
1.5 therms
Annual
Dollar Savings
$300 - $350
$600 - $700
$900 - $1050
Did you know?
SDG&E's Small Business Super Saver can help your business upgrade to newer, more energy-efficient equipment.
With larger rebates, you may be able to make upgrades with little or no-cost to you. Qualifying customers may also
pay for upgrades through their SDG&E bilL Visit www.sdge.comjsbsupersaver for more details on available rebates.
~-
CITY OF I Departmen.t of conservation.
(HULA VISTA & En.vlron.men.tal Services
C''OG~
,,;), fE
A ~ Sempra Energy utility-
The City of Chula Vista and SDG&E energy-effidency
partnership program is funded by California utility
customers and administered by SDG&E uncler the
auspices of the California Public Utilities Commission.
Serving you today.
Planning for- tomorrow. no
4-6
(l 2006 San DleQa Gas ~ Electrl~ Companv. Trademarks are property af tlleir r~peclive owner;.;\1I riqhls reserved. Some malerials used wilh permissior\.
06d0163 1006
iLlaves rocia,doraspara
preenjuagad()G~4TIS~
Cortesfa de la ciudad de Chuta Vista y SDG&E@
Reemplace sus viejas e ineficientes rociadoras para cocinas comerciales por nuevas
lIaves rociadoras para preenjuagado cortes fa de la ciudad de Chula Vista y SDG&E@.
tIt-..
iOFERTA POR TlEMPO UM!TADO!
Llame al 619-409-3893 0 escriba a Conservatlon@ci.chula-vlsta.ca.us para obtener sus !laves roci-
adoras para preenjuagado GRATIS hoy mismo. Apresurese, esta oferta esta disponible hasta e131
de marzo de 2007 0 hasta agotar existencias.
Estas !laves rociadoras de alta velocidad yalta eficiencia pueden ayudarle a su negocio a ahorrar hasta $1,050 al alio en
costos de agua, energia y servicio de drenaje (ver cuadro de abajo). Y 10 mejor de todo: puede obtener tantas lIaves como
necesite su negocio SIN COSTO PARA USTED-!lave rociadora e instalaci6n incluidas. Ademas, recibira una encuesta
preliminar sobre energia para detectar otros posibles ahorros de energia y oportunidades de reembolso en su negocio.
Ahorros estimados
Horas dellso de
lIave rodadora
Ahorro en agua!
aguas residllales
galones/dfa
60 galones
120 galones
180 galones
1 hora!dfa
2 hora!dfa
3 hora!dfa
Ahorro
de gas
termias/dfa
0.5 termias
1.0 termias
1.5 termias
Ahorros anllales
ell efectivo
$300 - $350
$600- $700
$900 - $1050
LSabls listed que?
El programa Super ahorros para empresas pequeiias de SDG&E puede ayudarle a su negocio a hacer mejoras por
equipo mas nuevo y con mayor eficiencia en energia. Con reembolsos mayores, podra realizar mejoras a un costo
reducido 0 sin costa para usted. Los clientes que reunan los requisitos pueden tambien pagar las mejoras a traves
de su factura de SDG&E. Visite www.sdge.com/sbsupersaver para conocer mas detalles sobre reembolsos disponibles.
~w?-
-11-
- --
-~ -
I Department of conservatlon
& Envlronmental Services
CITY OF
(HULA VISTA
Los program.a5 de reembolso de SDG&E son financiados
por los dientes de las compailias de servicios publicos de
California y administrad05 por SDG&E bajo 105 auspicos
de la Comisi6n de Servioos Pubiicos de California. Este
programa esta disponible para los participantes que reunan
10s requisitos y se procesaran las solicitudes en estricto orden
de recepcion hasta que se ago ten 105 fondos del programa
SDG&E SI! deslinda de toda responsabilidad por bienes 0
servicios que seleccione usted 0 un proveedor. Este programa
esta sujetc a cambios 0 a la cancelacion sin previo aviso.
4-7
SDll;
A ~ Sempra Energy utility-
Atendiendale hay.
Planificando para el manana.
RESOLUTION NO. 2006-
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA APPROPRIATING $376,000 FOR FISCAL
YEAR 2007 TO THE ENERGY CONSERVATION FUND FOR
THE SAN DIEGO GAS & ELECTRIC (SDG&E) ENERGY
PARTNERSHIP GRANT PROGRAM
WHEREAS, on September 19, 2006, the City Council accepted the grant for the San
Diego Gas & Electric (SDG&E) Partnership Program and appropriated funding for the 2006
calendar year of the SDG&E Partnership Program to the 2007 fiscal year; and
WHEREAS, approval of this $376,000 appropriation for the second calendar year of the
grant cycle, January I through December 31, 2007, also to the 2007 fiscal year will enable the
City to continue the partnership with SDG&E, residents and local businesses to reduce the
amount of gas therms and electricity kilowatts consumed by the public; and
WHEREAS, the second year of grant funding makes it possible for the City to continue
education/outreach and marketing support to reduce the amount of kilowatts (electricity), therms
(gas) and water consumed by customers that are either not fully participating or not eligible for
existing programs; and
WHEREAS, the grant provides funding for some additional private sector and City
facility savings to encourage their increased participation; and
WHEREAS, Conservation & Environmental Services will implement residential and
commercial public outreach and retrofit programs with approximately an additional $ I 79,000;
and
WHEREAS, Community Development will implement model energy design and
efficiency projects with the remaining $196,000; and
WHEREAS, General Services will return to Council in the near future to appropriate all
or part of its annual funding ($354,375) to implement City infrastructure investments as part of
the City Facilities Energy Efficiency Project; and
WHEREAS, staff is recommending that Council adopt this resolution appropriating
$376,000, with $17,410 going to Personnel Services, $286,937 going to Supplies and Services,
and $72,353 going to Other Expenses for reimbursing the general fund for staff time associated
with implementing the grant.
4-8
Resolution No.
Page 2
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Chula
Vista appropriates $376,000 for Fiscal Year 2007 to the Energy Conservation Fund for the
SDG&E Partnership Grant Program.
Presented by
Approved as to form by
Michael Meacham
Director of Conservation &
Conservation Services
J:\AltomeyIRESOIFINANCE\Appropriulion funds. Energy Conservation Fund (12-12-06)-JDSM R.:dline (CLEAN COPY).doc
4-9
RESOLUTION NO. 2006-
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA AMENDING THE 2006 APPROPRIA nON TO
PROVIDE ENERGY EFFICIENCY SERVICES FOR
COMMERCIAL AND RESIDENTIAL FACILITIES THROUGH
DECEMBER 31, 2008
WHEREAS, on September 19, 2006, the City Council accepted the grant for the San
Diego Gas & Electric (SDG&E) Partnership Program and appropriated funding for the 2006
calendar year of the SDG&E Partnership Program to the 2007 fiscal year; and
WHEREAS, the total grant provides $2,193,225 over a three-year period ending
December 31,2008; and
WHEREAS, staff is recommending that Council amend the Fiscal Year 2007 Grant Fund
budget adopted previously by transferring $25,500 from the Supplies and Services category to
the Other Expenses category to accommodate finance protocols for reimbursement of staff time
to execute the grant.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Chula
Vista does hereby amend the 2006 appropriation to the Grant Fund budget by transferring
$25,500 from the Supplies & Services to the Other Expenses category to provide energy
efficiency services for commercial and residential facilities through December 31,2008.
Presented by
Approved as to form by
~" .
ti l1i~~jf21 J-/uf!}
An oore ,/ I
lty Attorney U
Michael Meacham
Director of Conservation &
Conservation Services
J:lAllom<:y\RESQIF1NANCE\Amcnd FY06 appropriation - energy em:_}' srvcs (lZ-12-06)-JDSM Rcdlinc (CLEAN COPY).doe
4-10