HomeMy WebLinkAbout2008/01/22 Item 8
ITEM TITLE:
SUBMITTED BY:
REVIEWED BY:
CITY COUNCIL
AGENDA STATEMENT
JANUARY 22, 2008, Item~
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA AMENDING THE 2008 BUDGET TO: I)
APPROPRIATE $731,075.00 FOR THE FINAL CALENDAR
YEAR OF THE SDG&E ENERGY CONSERVATlON
GRANT, 2) ESTABLISH A CLERICAL POSITION AND
ENVIRONMENTAL RESOURCE MANAGER POSITION IN
THE CONSERVATION & ENVIRONMENTAL SERVICES
DEPARTMENT, AND APPROPRIATE FUNDS
THEREFORE, AND 3) TRANSFER $392,108 FROM
GENERAL SERVICES FUND TO THE ENERGY
CONSERVATION FUND
DIRECTO~NSERV A TlON & ENVIRONMENTAL
SERVICE
CITY MANAGER
ASSISTANT CIT MANAGER c; r
4/5THS VOTE: YES ~ NO D
SUMMARY
Approval of this request will allow staff to continue a partnership with SDG&E and the
California Public Utilities Commission (CPUC) to provide energy services to local
residents, businesses and City operations that reduce the amount of natural gas and
electricity consumed - programs that reduce ratepayer costs and complement the City's
long-standing commitment to the environment and the prevention of global warming.
Staff is requesting an appropriation of $731 ,075 for the third calendar year of a three-year
Energy Conservation grant from SDG&E. Staff is also requesting to move $392,108 of
unused 2007 funding from General Services Energy Conservation Fund to Conservation
& Environmental Services, and to re-establish a Clerical position in the Conservation &
Environmental Services (CES) Department. Re-establishing the position creates no net
impact to the General Fund. Staff is working with SDG&E to begin the process of
developing program descriptions for the 2009-2011 grant cycle.
ENVIRONMENTAL REVIEW
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The Environmental Review Coordinator has reviewed the proposed action for compliance
with the California Environmental Quality Act (CEQA) and has determined that this
action qualifies for a Class 8 categorical exemption pursuant to Section 15308 [Actions
by Regulatory Agencies for Protection of the Environment] of the State CEQA
Guidelines. Thus, no further environmental review is necessary.
RECOMMENDATION
That the City Council adopt the resolution: amending the 2008 Budget by: 1)
Appropriating $731,075 for the final calendar year of the SDG&E Energy Conservation
Grant to the Energy Conservation Fund, and 2) Adding a clerical position and an
Environmental Resource Manager in the Conservation & Environmental Services
Department, and appropriating $75,715 of the available balance of the General Fund to
the Conservation and Environmental Services Department's personnel services budget,
and 3) Transferring $392,108 from the City Facility Energy Efficiency Project (GGl99)
to the Energy Conservation 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
Chula Vista is a leader in fostering energy conservation partnerships that contribute to the
City's commitment to environmental stewardship and Climate Protection. This third year
of funding continues support to reduce millions of kilowatts hours (electricity), and
therms (gas) consumed by customers and City facilities that are either not fully
participating or not eligible for existing Public Utilities Commission programs. On
September 19, 2006, the City Council accepted the grant, executed a three-year
agreement with SDG&E and appropriated funding for the 2006 calendar year of the
SDG&E partnership program. On December 12, 2006 and February 6, 2007 the City
Council appropriated the 2007 calendar year grant funding cycle for CES and General
Services Departments respectively. This appropriation is for the third year of the three-
year grant ending December 31, 2008.
The grant is funded by the CPUC with "Public Goods Charges," which 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, conservation and demand
management, renewable energy and emerging technology and low income rate payer
assistance support 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.
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DISCUSSION
The Grant provides funding to Engineering and General Services, Public Works,
Economic Development and Planning & Building to reduce energy consumption at City
facilities, provide energy conservation support for major development projects, train
permit staff and provide resources to better assist the public with their energy
conservation needs. 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 funded through Public Goods
Charges.
Public Goods 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 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.
This appropriation continues or establishes services in the following areas:
1. Energy Conservation Outreach Programs
2. City Facilities Energy Efficiency and Demonstration Project
3. Green Urban Infill Project
4. Community Design Reference Guide
5. Bayfront Infrastructure Energy Modeling
6. Sustainable Communities Outreach Program
1. Energy Conservation and Outreach Programs
Conservation & Environmental Services Department (CES) will implement the three
programs included in this component of the grant. This component provides funding for
staff and supplies to work with residents, businesses and south bay agencies to reduce
electricity and natural gas use. Since September 2006 CES staff has arranged for local
businesses to install 515 pre-rinse spray valves that reduce the consumption of natural gas
by 125,984 therms, slightly exceeding the original goal. CES Staff has also worked with
1358 businesses and 952 residents to replace 12,488 incandescent light bulbs with
compact fluorescent lamps or CFL's and 730 holiday lights with light emitting diodes or
LED's to eliminate an estimated 1.4 million kilowatt hours of electricity use. The Public
Outreach components of the Grant focus on marketing residential and commercial
programs to eligible residents and businesses 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 and Environmental Services is dedicating some hourly personnel resources
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to providing technical assistance to help potential participants access services. This
component will also identify and record the barriers to participation and 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 ofthis grant or future cycles.
Staff has also begun to meet with representatives from Imperial Beach, National City,
Coronado, Schools and water agencies to provide energy assistance to their facilities,
residents, customers and businesses, and prepare them to potentially participate more
directly in the next three year grant cycle. Conservation & Environmental Services has
also taken the lead in establishing and administering the grant for the City.
2. City Facilities Enerl!V Efficiencv Proiect
Engineering and General Services is implementing this program and has established a list
of City projects that will reduce energy consumption and city energy costs. Engineering
and General Services is working with the California Center for Sustainable Energy and
the California Energy Commission to complete the loan documents that fund the
equipment portion of their project and expect to begin projects in the immediate future.
3. Green Urban Intill Proiect
Economic Development is implementing this program component. The funding allows
staff to work with project applicants to model the cost effectiveness of potential energy
and environmental project enhancements. The program is designed to make a more
comprehensive approach to evaluating greater energy efficiency, conservation and
renewable measures in the design phase of projects. The technical support helps to
eliminate the guesswork and perceived risk for project proponents by identifying the most
cost effective options, available financial support and process assistance for their project.
4. Community Desil!:n Reference Guide
Economic Development is implementing this program component. In the Energy
Efficiency Reference Guide Component of the Grant, the National Energy Center for
Sustainable Communities will plan and facilitate a series of workshops both locally and
state-wide to present the results of the energy modeling study for Otay Ranch and the
Creekside Vistas condominiums and the Los Vecinos affordable apartment project, that
are also being supported by the Green Urban Infill component of the grant. Staff and the
National Energy Center will prepare a branded set of printed guides, compact disc
versions of the guides, promotional ad-copy suitable for placement in magazines and
websites, and a promotional multi-media presentation based on this research. These
guides and presentations will promote more sustainable community development based
on extensive modeling of alternative design options that maximize the use of renewable
and advanced energy-efficient technologies and systems. The guides are intended for
public and private development professionals, financial institutions and State and local
government agencies.
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5. Bavfront Infrastructure Enerl!V Modeline
Economic Development is implementing this component. TIlls funding will allow the
City to work with the Port and SDG&E to take a more comprehensive approach to
identifYing and planning for the energy infrastructure needs for the uses identified under
the Bayfront Master Plan. Like the other components of the grant, this project will work
to reduce ratepayer costs and complement the City's long-standing commitment to the
protection of the environment and prevention of global warming.
6. Sustainable Communities Outreach Proeram
The Planning and Building Department is implementing this component. The project
provides funding for Planning & Building Department to assess its current practices and
make adjustments that will facilitate customer choice in the permit process. By working
with Development Services Technicians and Building Inspectors staff will develop a
process that provides consumer's with timely information about approved
SDG&E/CPUC programs that can help them reduce their project costs and energy costs
while contributing positively to the environment. By working with applicants when it is
most cost effective, at the beginning of their projects, and coordinating the rapidly
changing technology and rebate programs with permit applicants, the program will
provide Chula Vista residents and businesses with customer choices that allow them to
make the most of their project's energy investment. The program is being designed to
provide permit applicants with basic information at the front end of their projects and
provide added technical assistance for those that want it. As part of the project, SDG&E
has also asked the City to review its energy permit standards and present options for
potentially increasing those standards. Increasing energy standards at the local level is a
major priority recently adopted by the CPUC. SDG&E has also stated that it is a critical
part of an energy conservation effort needed to eliminate old power generation sources.
Finally, it is the key area of local authority that is capable of making the largest
contri?ution to the City's C02 reduction program and effort for the prevention of global
warmmg.
The success of each of these components is critical to the success of the grant and future
CPUC funding for Chula Vista. With adequate resources, staffs success will make a
strong statement to the CPUC that Chula Vista continues 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. SDG&E tells City Staff
that the CPUC looks at the SDG&E/Chula Vista partnership as a model for the other
partnerships in the state. That continued high level of success over the next six months
would 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 2009-2011 grant cycle. The CPUC has already stated their
intention to continue the Public Purpose Programs and a strong preference for local
government involvement.
The clerical position for Conservation & Environmental Services would be restored to
full time, initially at the lower Senior Secretary level and provide highly responsible
secretarial support to the Director of Conservation & Environmental Services, the
Environmental Resource Managers and the other 7 positions in the department. The
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position would perform a variety of highly responsible and complex clerical, secretarial
and administrative duties for the department including the execution of the energy
conservation grant. An additional Environmental Resource Manager will provide
technical support on infrastructure projects, particularly Item 5) Bayfront Infrastructure
Modeling Project, and 3) Green Urban Infill Project described above.
If Council approves staff recommendation, CES staff will: I) Continue to implement the
grant objectives; and 2) make the necessary budget adjustments to accommodate
additional staff time reimbursements for the clerical and Environmental Resource
Manager positions. Non-general fund sources already provide funding for clerical support
to the CES Department. This action increases that funding, secures it through December
31, 2008, and adds a clerical position in the CES Department. The clerical position
would be added as an interim position through December 2008, subject to identifying
additional non-general fund resources such as; the projected renewal of the energy
conservation grant for the 2009-2011 calendar years.
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)(l) 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 $731 ,075. This grant appropriation provides funds to offset existing staff costs
associated with implementing the grant in Conservation & Environmental Services and
Economic Development. There is an adequate portion of the February 6, 2007
appropriation by General Services Department remaining to offset their staff costs
associated with implementing their component of the grant through December 2008. 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.
The cost of adding a Senior Secretary position is estimated at $29,300 for the remainder
of fiscal year 2007-08 and $71,400 for fiscal year 2009. The Cost of adding the second
Environmental Resource Manager is estimated to be $46,415 for the remainder of the
year 2007-08 and $113,021 for FY09. These costs will be fully offset through December
2008 by increased staff time reimbursements resulting in no net impact to the general
fund. Continuation of the position beyond December 2008 will be subject to identifying
additional non-general fund resources.
Prepared by:
Michael Meacham, Conservation & Environmental Services Director, Office of
Conservation & Environmental Services
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RESOLUTION NO. 2007-
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA AMENDING THE 2008 BUDGET TO: 1)
APPROPRIATE $731,075.00 FOR THE FINAL CALENDAR
YEAR OF THE SDG&E ENERGY CONSERVATION GRANT, 2)
ESTABLISH A CLERICAL POSITION AND ENVIRONMENTAL
RESOURCE MANAGER POSITION IN THE CONSERVATION &
ENVIRONMENTAL SERVICES DEPARTMENT, AND
APPROPRIATE FUNDS THEREFORE, AND 3) TRANSFER
$392,108 FROM GENERAL SERVICES FUND TO THE ENERGY
CONSERVATION FUND
WHEREAS, on September 19, 2006, the City Council accepted an SDG&E Energy
Conservation grant, executed a three-year agreement with SDG&E and appropriated funding for the
2006 calendar year of the SDG&E partnership program; and
WHEREAS, on December 12,2006 and February 6, 2007 the City Council appropriated the
2007 calendar year grant funding cycle for (CES) the Conservation & Environmental Services and
General Services Departments respectively; and
WHEREAS, this appropriation is for the third year of the three year grant ending December
31,2008; and
WHEREAS, the grant is funded by the CPUC with "Public Goods Charges," which 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; and
WHEREAS, 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; and
WHEREAS, the Grant provides funding to Engineering and General Services, Public Works,
Economic Development and Planning & Building to reduce energy consumption at City facilities,
provide energy conservation support for major development projects, train permit staff and provide
resources to better assist the public with their energy conservation needs; and
WHEREAS, 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 funded through Public Goods Charges; and
WHEREAS, Public Goods 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
environmental and public health objectives; and
H:\AllomeyIFinal Resos\2008\Ol 22 08\SDG&E Energy Conservation Grant revised, doc 8 - 7
Resolution No. 2007-
Page 2
WHEREAS, 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; and
WHEREAS, this appropriation continues or establishes services in the following areas: 1)
Energy Conservation Outreach Programs, 2)City Facilities Energy Efficiency and Demonstration
Project; 3) Green Urban Infill Project, 4) Community Design Reference Guide, 5) Bayfront
Infrastructure Energy Modeling, and 6) Sustainable Communities Outreach Program; and
WHEREAS, the success of each of these components is critical to the success of the grant
and future CPUC funding for Chula Vista; and
WHEREAS, that continued high level of success over the next six months would almost
guarantee that there is some level oflocal control to ensure that Chula Vista businesses, residents and
City facilities receive their fair share of these valuable incentives and services in the 2009-2011 grant
cycle.
NOW, THEREFORE, BE IT RESOLVED the City Council of the City ofChula Vista does
hereby amend the 2008 budget to appropriate $731,075.00 for the final calendar year of the SDG&E
Energy Conservation Grant.
BE IT FURTHER RESOLVED that the City Council of the City ofChula Vista does hereby
amend the 2008 budget to establish a clerical position and Environmental Resource Manager in the
Conservation & Environmental Services Department and appropriate funds therefore.
BE IT FURTHER RESOLVED that the City Council ofthe City ofChula Vista does hereby
amend the 2008 budget to transfer $392,108 from General Services Fund to the Energy Conservation
Fund.
Presented by
Approved as to form by
Michael Meacham
Director, Department of Conservation
& Environmental Services
H:\Attomey\Final Resos\2008\Ol 22 08\SDG&E Energy Conservation3nrrSrevised.doc