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HomeMy WebLinkAbout2008/12/09 Item 3 CITY COUNCIL AGENDA STATEMENT ",~t; ~(ft- C1TYOF '-~ (HULA VISTA DECEMBER 9, 2008, Item -3 ITEM TITLE: RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING AN ADDENDUM TO THE LOCAL GOVERNMENT PARTNERSHIP AGREEMENT WITH SAN DIEGO GAS & ELECTRIC TO CONTINUE THEIR FUNDING OF ENERGY EFFICIENCY PROGRAtVlS AND APPROPRIATING $551,808 TO THE ENERGY CONSERV A nON FUND TO PROVIDE BRIDGE FUNDING FOR THE PARTNERSHIP THROUGH FISCAL YEAR 2009 SUBMITTED BY: DIRECTOR OF CONSERV AnON & ENVIRONMENTAL ~, SERVICES V REVIEWED BY: <- ----I INTERIM CITY MANAGER ? SUMMARY The Local Government Partnership between the City of Chula Vista and San Diego Gas & Electric (SDG&E) provides funding for energy efficiency services to local residents, businesses and City operations that reduce the amount of electricity and natural gas consumed and lower montWy utility costs. The contract addendum would provide "bridge funding" for the Partnership until the California Public Utilities Commission formally approves the proposed 2009-201 I Chula VistalSDG&E Energy Efficiency Partnership Program (anticipated in June 2009). The bridge funding will allow the City to continue its efforts to expand energy efficiency opportunities in the community and at municipal facilities. 4/STHS VOTE: YES ~ NO D ENVIRONMENTAL REVIEW The Environmental Review Coordinator has reviewed the proposed activity for compliance with the California Environmental Quality Act (CEQA) and has determined that the activity is not a "Project" as defined under Section 15378 (b)(4) of the State CEQA Guidelines; therefore, pursuant to Section l5060(c)(3) of the State CEQA Guidelines the activity is not subject to CEQA. Thus, no environmental review is necessary. 3-1 DECEMBER 9, 2008, Iteml Page 2 of 4 RECOMMENDA nON Council adopt the resolution. BOARDS/COMMISSION RECOMMENDA nON Not applicable. DISCUSSION In September 2006, City Council approved the current SDG&E Local Government Partnership Agreement that provided $2,193,225 ($731,075 per calendar year) to the City's energy conservation efforts. The funding is provided through a "Public Goods Charge" which is a monthly utility bill surcharge on energy consumed by every customer in SDG&E's territory. The funds are used to reduce the amount of kilowatt-hours (electricity) and therms (gas) consumed by the Chula Vista community, especially sectors which historically have not fully participated or are not eligible for existing energy incentive programs. Targeted sectors include low income residents, small businesses, contractors, permit applicants and developers. In addition to lowering monthly utility costs, these energy savings contribute to reducing Chula Vista's greenhouse gas emissions or "carbon footprint." Bdow are summaries of each Partnership component's accomplishments during the 2006-2008 period: lvfunicipal Facilily Improvements The Engineering Department working in collaboration with the Conservation & Environmental Services Department has identified and begun 35 energy efficiency and renewable energy retrofit projects at 6 municipal buildings. Partnership funds supported City staff time and consultant fees, while the capital improvements were funded through low-interest California Energy Commission loans. The retrofit projects, anticipated to be completed by March 2009, will generate approximately 1.4 million kWh and 50,000 therms in annual energy savings and reduce the City's annual utility costs by over $200,000. In addition, City staff is participating in "Building Operator Certification" classes to improve energy management practices. Community Energy Efficiency The Conservation & Enviromnental Services Department has promoted energy efficiency and conservation in the community through its business/residential energy assessment program and participation in community outreach events. Since 2007, the Partnership has funded City staff to perform over 1,000 on-site energy assessments and provide over 35,000 energy-efficient Compact Fluorescent Lamps (CFLs) to community participants producing approximately 3.8 million kWh and 130,000 therms in direct energy savings. Through the Partnership, Chula Vista also worked with community stakeholders to form the Climate Change Working Group to help draft new strategies for reducing the City's greenhouse gas emissions and complete annual emission inventories. 3-2 DECEMBER 9,2008, Iteml Page 3 of4 Sustainable Communities The Sustainable Communities Outreach Program, which is administered by the Planning and Building Department, works to integrate energy efficiency into the permitting and inspection process. The Partnership has funded City staff to educate permit applicants, contractors and developers on energy efficiency opportunities and to train permit counter technicians and building inspectors on advanced energy technologies. The Planning and Building Department has also developed ordinance proposals to promote renewable energy and green building design principles in new construction and major renovation projects. Redevelopment & Economic Development The Redevelopment Agency and Economic Development Organizations have sponsored energy generation and efficiency technical modeling studies of proposed projects using its Partnership funding. In pmiicular, the Los Vecinos Affordable Housing Project, which is now under construction, was modeled and designed to exceed Title-24 energy efficiency standards by over 37%. The Bayfront Master Plan is also being analyzed to determine the feasibility of installing an cfflcient district energy .system to serve the area's new energy demand. Finally, Partnership funds have helped disseminate the results of the "Chula Vista Research Project" which was a multi-year study to determine technical and economic opportunities and barriers to integrating energy efficiency at community-level planning and design. As pmi of its 2009-2011 Energy Efficiency Program Portfolio (EEPP), San Diego Gas & Electric has included $4.6 million (3-year total) to continue the Chula VistalSDG&E Partnership Program. The EEPP is reviewed and ultimately approved by the California Public Utilities Commission which has notified SDG&E (and other Investor-Owned Utilities in California) that there will be delays in approving the new EEPP. As a result, the new Chula VistalSDG&E Partnership Program's funding will most likely be delayed until June 2009 and SDG&E has committed to provide $91,968 in montWy "bridge funding" to the City until the new funding is approved. The montWy bridge funding amount was determined with the assistance of each department and will support basic staffing and program costs. When the California Public Utilities Commission formally approves SDG&E's Energy Efficiency Program Portfolio in summer 2009, a new 2009-2011 Partnership agreement between the local utility and Chula Vista will be finalized with funding levels based on the original $4.6 million program allocation minus spent bridge funding amounts. DECISION MAKER CONFLICT 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 in California Code of Regulations section 18704.2(a)( 1) is not applicable to this decision. 3-3 DECEMBER 9, 2008, Iteml Page 4 of 4 FISCAL IMPACT The new funds will be budgeted into the 2009 Energy Conservation Fund and will not have a negative impact to the General Fund. The contract addendum will provide the City with $551,808 ($91,968 monthly) in "bridge funding" (on a reimbursement basis) to support the Chula VistalSDG&E Partnership Program through June 2009 when it is anticipated that more long-term funding will be received. The long-term funding will be addressed in the 2009/20 I 0 fiscal year budget. As mentioned earlier, these funds will be used to support City staff time and program costs for continuing the development and implementation of energy efficiency programs. Approximately 5 full-time and 7 part- time City staff members' salaries and budgets are fully funded through the Chula VistalSDG&E Partnership Program. In addition, the resulting energy reductions from the program have generated approximately 8800,000 and $200,000 in annual energy cost savings for the Chula Vista community (businesses and residents) and municipal operations, respectively. The Administration of this grant is funded through the Conservation & Environmental Services Department's approved budget and the Partnership grant. ATTACHMENTS Attachment A - SDG&E Local Government Partnership Agreement Addendum Prepared by: Brendan Reed, Environmental Resource Manager, Conservarion & Em!ironmenlal Services 3-4 THE A TT ACHED AGREEMENT HAS BEEN REVIEWED AND APPROVED AS TO FORM BY THE CITY ATTORNEY'S OFFICE AND WILL BE FORMALL Y SIGNED UPON APPROVAL BY THE CITY COUNCIL , r , Dated: \ ~:~ fig: Addendum to the Agreement to Jointly Deliver the 2006-2008 City of Chula Vista Energy Efficiency and Conservation Outreach Program 3-5 ADDENDUM TO "AGREEMENT TO JOINTLY DELIVER THE 2006-2008 CITY OF CHULA VISTA ENERGY EFFICIENCY AND CONSERVATION OUTREACH PROGRAM" THIS ADDENDU1v! TO THE "AGREEMENT TO JOINTLY DELIVER THE 2006- 2008 CITY OF CHULA VISTA ENERGY EFFICIENCY AND CONSERVATION OUTREACH PROGRAM" (the "Addendum") is effective as of December _, 2008 ("Effective Date"), by and between SAN DIEGO GAS & ELECTRIC COMPANY ("SDG&E"), and the CITY OF CHULA VISTA ("CITY"). SDG&E and the City may be referred to herein individually as a "Pat1y" and collectively as the "Parties." All capitalized terms not otherwise defined herein shall have the meaning ascribed to them in the "Agreement to Jointly Deliver the 2006-2008 City of Chula Vista Energy Efficiency and Conservation Outreach Program," dated as of January 1, 2006, by and between the Parties (the "2006- 08 Agreement"). RECITALS WHEREAS, the Parties previously executed the 2006-08 Agreement, which provided for the Energy Efficiency and Conservation Outreach Program to implement energy efficiency and conservation measures by overcoming existing barriers and to increase public awareness about energy efficiency and. conservation through non- traditional education and outreach outlets and channels used by cities and San Diego County; WHEREAS, on July 21, 2008, SDG&E submitted its application ("2009-11 Applications") for the implementation of energy efficiency programs to be delivered to California utility customers for the years 2009 through 2011, which included the 2009-11 City of Chula Vista Energy Efficiency Partnership Program (the "2009-11 Program"). The progratn clements to be jointly delivered include municipal facility efficiency improvements, strcngthened building energy codes and inspections, energy-saving redevelopment planning and design and community-based energy conservation education and facility assessmcnts to local govcrnments, public agcncics, businesses and residents located in thc SDG&E service territory; WHEREAS, on August 18,2008, SDG&E filed a request for bridge funding in order to continue certain energy efficiency programs into 2009 in the event the Commission does not finalize a decision on 2009-20 II Applications before the end of 2008; WHEREAS, on October 16,2008, the Commission issued a Decision Adopting Bridge Funding For 2009 Energy Efficiency Programs ("Bridge Funding Decision") allowing SDG&E to expend funds to continue ccrtain 2008 energy efficiency programs during the period from January 1, 2009 to the earlier of three (3) months after the effective date of the Commission's final decision on the 2009-11 Applications, or December 31,2009 ("Bridge Funding Period"); 3-6 WHEREAS, the Parties desire to enter into this Addendum to provide for an extension of the 2006-08 Agreement in the event the Commission has not issued a final decision on the 2009-11 Applications on or prior to January 1,2009; and NOW THEREFORE, for valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the Parties agree as follows: 1. In the event the Commission has not issued a final decision on the 2009-11 Applications prior to January I, 2009, then the Parties agree to extend the 2006-08 Agreement, as follows: a. The Parties shall be authorized to perform Authorized Work under the 2006-08 Agreement after December 31, 2008 ("Bridge- Funded Authorized Work"), subject to the terms of this Addendum. b. The Parties shall continue to track all Authorized Work under the 2006-08 Agreement performed prior to January I, 2009 ("2006-08 Authorized Work") and all related reports and other work, including the final invoice for the 2006-2008 period, must be submitted to SDG&E by February 15, 2009. c. The Bridge-Funded Authorized Work shall be subject to the terms of the Bridge Funding Decision. In the event of any inconsistency between this Addendum and the Bridge Funding Decision, the terms of the Bridge Funding Decision shall control. d. The Commission-approved monthly budget for City performance of the Bridge-Funded Authorized Work ("Monthly Bridge Funding Budget") shall not exceed $91,968. The Parties acknowledge that any unspent funds in a single month that is allocated in the Monthly Bridge Funding Budget may not be spent in future months, unless prior written authorization is provided by SDG&E. The Monthly Bridge Funding Budget may be supplemented on a case-by- case basis with prior written authorization from SDG&E. The Parties shall not spend any funds allocated to the Bridge Funding Period prior to January 1, 2009. No unspent funds from the 2006-08 program cycle shall carryover into the Bridge Funding Period except such funds as are necessary to prepare final project reports for projects installed prior to December 31, 2008, final program reports and final invoices. 3-7 2 e. This Addendum may be terminated in the manner provided in Section 24 of the 2006-08 Agreement. Unless this Addendum is terminated pursuant to that Section 24, the Parties shall complete all Direct Implementation and Marketing & Outreach activities (as defined in the Program Implementation Plans ("PIPs") related to Bridge-Funded Authorized Work by no later than the date that is three months after the effective date of a final decision by the Commission on the 2009-11 Applications, or by December 31, 2009, or by the effective date of an Agreement for the 2009-11 Application activities, whichever occurs first (such first date, the "Bridge-Funded Authorized Work Deadline"). Program administrative activities (as defined by PIPs' workbooks and reporting requirements), including submission of the Final Report(s), for Bridge-Funded Authorized Work must be completed no later than three (3) months following the Bridge-Funded Authorized Work Deadline, unless otherwise agreed to by the Parties or so ordered by the Commission. f. The Parties shall track all Bridge-Funded Authorized Work performed after January I, 2009, and final invoices for Bridge-Funded Authorized Work shall be submitted no later than three (3) months following the Bridge-Funded Authorized Work Deadline. g. The Term of the 2006-08 Agreement shall continue in effect with respect to Bridge-Funded Authorized Work until the date which is three (3) months following the Bridge-Funded Authorized Work Deadline, unless otherwise terminated in accordance with the provisions of Section 24 of the 2006-08 Agreement. h. The terms of the 2006-08 Agreement (as amended, restated, supplemented or modified under this Addendum) shall remain in full force and effect for such Bridge-Funded Authorized Work. In the event of any inconsistency between the terms of the 2006-08 Agreement and the terms of this Addendum, the terms of this Addendum shall control. Unless otherwise stated in this Addendum, the Parties' rights and obligations with respect to Authorized Work performed on or prior to December 31, 2008 shall remain the same and are not intended to be amended or modified. 2. If the Commission has not issued a final decision on the 2009-11 Application authorizing the 2009-11 Program prior to January 1, 2009, then this Addendum shall automatically terminate and be of no further force and effect. [REMAINDER OF PAGE INTENTIONALL Y LEFT BLANK] 3-8 3 IN WITNESS WHEREOF, the Parties hereto have caused this Addendum to be executed by their duly authorized representatives. CITY: THE CITY OF ClfULA VISTA By: Attest: Name Printed: Donna Norris, City Clerk By: Approved As to Form: Name Printed: Bart Miesfeld, Interim City Attorney By: Approved As to Form: Name Printed: Scott Tulloch, Interim City Manager Date: ,2008 SDG&E: SA1'>l DIEGO GAS & ELECTRIC COi.YIP A1';-Y By:~.~ Name Printed: Hal Snyder --- Its: Vice President, Customer Programs Date: ,2008 3-9 4 Signature Page to Addendum to the Agreement Between City of Chula Vista and San Diego Gas & Electric Company to Jointly Deliver the 2006-2008 City of Chula Vista Energy Efficiency and Conservation Outreach Program Dated: City of Chula Vista By: Cheryl Cox Mayor Attest: Donna Norris, CMC City Clerk A pproved as to form: Bart C. Miesfeld Interim City Attorney J:\AltomeyIJILLM\AGREEMENTS\SDGE Panncrnhip Contract Addendum -- Cil~ ~gf'rn page_12-09-08.doc RESOLUTION NO. 2008- RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING AN ADDENDUM TO THE LOCAL GOVERi~ENT PARTNERSHIP AGREEMENT WITH SAN DIEGO GAS & ELECTRIC TO CONTINUE THEIR FUNDING OF ENERGY EFFICIENCY PROGRAMS AND APPROPRIATING $551,808 TO THE ENERGY CONSERVATION FUND TO. PROVIDE BRIDGE FUNDING FOR' THE PARTNERSHIP THROUGH FISCAL YEAR 2009 WHEREAS, in September 2006, City Council approved the current San Diego Gas & Electric (SDG&E) Local Government Partnership Agreement that provided $2,193,225 ($731,075 per calendar year) to the City's energy conservation efforts; and WHEREAS, specitically, the funds are used to reduce the amount of kilowatt-hours (electricity) and therms (gas) consumed by the Chula Vista community, especially sectors which historically have not fully participated or are not eligible for existing energy incentive programs; and WHEREAS, targeted sectors include low-income residents, small businesses, contractors, permit applicants and developers. In addition to lowering monthly utility costs, these energy savings contribute to reducing Chula Vista's greenhouse gas emissions or "carbon footprint;" and WHEREAS, as part of its 2009-2011 Energy Efficiency Program Portfolio (EEPP), San Diego Gas & Electric has included $4.6 million (three-year total) to continue the Chula VistaJSDG&E Partnership Program; and WHEREAS, the EEPP is reviewed and ultimately approved by the California Public Utilities Commission which has notified SDG&E (and other Investor-Owned Utilities in California) that there will be delays in approving the new EEPP; and WHEREAS, as a result, the new Chula VistaJSDG&E Partnership Program's funding will most likely be delayed until June 2009 and SDG&E has committed to provide $91,968 in monthly "bridge funding" to the City until the new funding is approved; and WHEREAS, the monthly bridge funding amount was determined with the assistance of each department and will support basic stafting and program costs; and WHEREAS, when the California Public Utilities Commission formally approves SDG&E's Energy Efficiency Program Portfolio in summer 2009, a new 2009-2011 Partnership agreement between the local utility and Chula Vista will be finalized with funding levels based on the original $4.6 million program allocation minus spent bridge funding amounts; and J:\AltomcyIRESOLUT10I"SIAMENDMENTSlAddcndum 10 LGP agrnt wilh SDG&E_'2_[)~_;:dll Resolution No. 2008- Page 2 WHEREAS, the contract addendum would provide "bridge funding" for the Partnership until the California Public Utilities Commission formally approves the proposed 2009-2011 Chula Vista/SDG&E Energy Efficiency Partnership Program (anticipated in June 2009); and WHEREAS, the bridge funding will allow the City to continue its efforts to expand energy efficiency opportunities in the community and at municipal facilities. NOW, THEREFORE, BE IT RESOLVED the City Council ofthe City ofChula Vista does hereby approve an addendum to the Local Government Partnership Agreement with San Diego Gas & Electric to continue their funding of energy efficiency programs. BE IT FURTHER RESOL VED that the City Council does hereby appropriate $551,808 to the Energy Conservation fund to provide bridge funding for the Partnership through Fiscal Year 2009. Presented by Approved as to form by Michael Meacham Director of Department of Conservation & Environmental Services -'--~- J:\Attomey\RESOLUTIONS\AMENDMENTS\Addcndum to LGP a~;rt J,i~ SDG&E_12-09-08.doc