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HomeMy WebLinkAbout2009/07/21 Item 5 .,~ ~ 'l:' ..,:~ CITY COUNCIL AGENDA STATEMENT :s\I~ CITY OF ~. - - (HULA VI5fA ITEM TITLE: SUBMITTED BY: REVIEWED BY: mLY21,2009,Item 5 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING SUBMITTAL OF A CLIMA. TE SHOWCASE COMl\1UNITIES GRANT AJ>PLICATION TO THE ENVIRONMENTAL PROTECTION AGENCY FOR $471,000 AND AUTHORIZING THE CITY MA.NAGER OR HIS DESIGNEE TO EXECUTE ALL DOCUMENTS NECESSARY TO OBTAIN AND MANAGE GRANT HJNDS DIRECTOR OF CONSERVATION & ENVIRONMEN0 SERVICES t!:: . ~ CITY MANAGER: ASSISTANT CITY, Al'lAGER c:; / 4/5THS VOTE: YES D NO I X I SUMMARY The Environmental Protection Agency's Climate Protection Partnership Division is soliciting proposals for their Climate Showcase Communities grant program which was created to establish greenhouse gas emission reduction demonstration projects. In response. City staff has prepared a $471,000 proposal to retrofit two neighborhood areas to serve as a living showcase for "Carbon-Light Communities." Specifically, Chula Vista will select approximately 50 existing homes to upgrade with energy efficiency, water conservation and renewable energy improvements. These building upgrades will be further complemented by neighborhood infrastructure improvements such as the installation of higbly efficient street lighting technologies and the planting of shade trees. The "Carbon-Light" neighborhoods will serve as a social marketing tool for the City's broader Home Upgrade, Carbon Duwngrade program which is designed to provide streamlined contracting, permitting and property-secured financing for carbon-saving retrofits at over 2,000 homes over the next 3 years. The project budget, if funded, would cover all staff, material and general implementation costs, and would leverage the City's existing Energy Efficiency & Conservation Block Grant and SDG&E Local Government Pa,:1:nership funds. The project is estimated to reduce each participating property-owner's annual utility costs by $450. 5-1 JUL Y 21, 2009. Item 5 . - Page 2 of 4 E]\;'VIRO!,;MENTAL 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 of the State CEQA Guidelines, because the proposed action involves the submittal of a grant application which would not result in a potentially significant physical impact on the environment. Therefore, pursuant to Section 15060 (c) (3) of the State CEQA Guidelines, the activity is not subject to CEQA. Thus, no environmental review is necessary. RECOMMENDA TION Staff recommends that City Council adopt the resolution. BOARDS/COMMISSION RECOMMENDATION The Resource Conservation Commission unanimously recommended approval of the agenda item at their July 13, 2009 meeting. DISCUSSION The Environmental Protection Agency's (EP A) Climate Protection Partnerships Division was established to reduce greenhouse gases (GHG) by creating cost-effective partnerships with various community sectors including local municipalities and public agencies. Local governments playa critical role in reducing GHG emissions, but many struggle with meeting their established reduction targets. Therefore, the EP A has allocated $10 million to its Climate Showcase Communities grant program to establish greenhouse gas emission reduction demonstration projects, build local capacity to foster broader climate action and serve as replicable models for other local governments across the nation. It is anticipated that the EP A will award 19-25 grants ranging in value from $300,000 to $500,000. In response to the grant solicitation, City staff has prepared a $471,000 proposal to retrofit two neighborhood areas to serve as a living showcase for "Carbon-Light Communities". The City, in partnership with community groups, labor organizations, education districts and water and energy utilities, will encourage residents to recruit other homeowners on their street and nominate their neighborhoods for participation in the showcase project. Neighborhoods will be selected by the Resource Conservation Commission based on their level of homeowner participation and commitment to overall environmental sustainability. Participating homes within each selected neighborhood will receive no-cost energy efficiency, water conservation and renewable energy improvements. These retrofits will result in a lower carbon footprint for each home (and the overall neighborhood) and reduce their annual utility costs by approximately $450. In rerum, the participating homeowners will agree to allow their energy savings to be tracked, to host community open houses, and to assist with general publicity of the "Carbon-Light Communities" project. These individual home upgrades will be complemented by neighborhood infrastructure improvements such as highly-efficient street tight retrofits and shade tree plantings to provide an even more comprehensive, dramatic living model. The proposed project's budget would fully fund the individual 5-2 JUL Y 21, 2009, Item~ Page 3 of 4 property improvements, neighborhood infrastructure upgrades, project management and marketing costs. Existing utility incentives and rebates would also be integrated to improve the project's cost-effectiveness and expand its positive community impact. The "Carbon-Light Communities" project will serve as a powerful social marketing tool for the City's broader Home Upgrade, Carbon Downgrade program. The program, which was part of Council-approved Climate Measure #5, is intended to facilitate widespread installation of renewable energy and energy and water efficiency upgrades by helping residents and businesses overcome common institutional barriers, upfront capital costs and time constraints. The program's five primary components include (I) assisting participants in identifying cost-effective energy and water upgrades that help reduce monthly utility costs, (2) executing a competitive bid process that identifies participating contractors and establishes maximum prices and minimum warranty/service standards, (3) aggregating participants geographically to harness their collective purchasing authority and ma'(imize the potential for installation savings, (4) establishing voluntarv assessment districts to provide property-secured financing options for participants' improvements, and (5) linking local vocational job training in energy and water conservation with focused business recruitment and retention. The publicity and heightened public interest from the "Carbon-Light Communities" project "ill help support the Home Upgrade. Carbon Downgrade program's goal of enrolling over 2,000 properties in the next 3 years and generating approximately Sl million in annual community energy savings. The program will also help fuel a new "green" economy by creating demand for carbon-saving products and trained employees, and through partnerships with local educators, retailers, the National Electrical Contractors Association (NECA) and the International Brotherhood of Electrical Workers (IBEW). DECISION MAKER CONFLICT Staff has determined that the recommendations reqUITIng Council action are not site- specific and consequently the 500-foot rule found in California Code of Regulations section I 8704.2(a)(l) is not applicable to this decision. CURRENT YEAR FISCAL IMP ACT The City's submission of its Climate Showcase Communities grant application would not have a negative impact on the City's General Fund for the current fiscal year. If awarded, the grant would cover all staff time and material costs associated with implementing the project. The 50% match requirement under the grant guidelines would be funded through the existinil Conservation & Environmental Services Department budget and the SDG&E Local Government Partnership. ONGOING FISCAL IMPACT All implementation costs over the 3-year project period would be funded through the Climate Showcase Communities grant and other existing funding sources. Tnerefore, no negative ongoing General Fund impact is anticipated. Staff has worked with local contractors and retailers to include strong local and purchasing provisions in the program, and the upgrade of 2,000 homes per year would generate an estimated S30,000,000 in 5-3 JUL Y 21, 2009, 1tem~ Page 4 of 4 goods and services per year that will have a positive impact on the general fund and the local economy. A TT ACRl\1ENTS Attachment A - "Carbon-Light Communities" Grant Proposal Sumri1ary Prepared by: Brendan Reed, Environmental Resource Manager, Conservation & Errvironmenta! Services 5-4 ~ \ ft.- ~ - - -- -:...-- -~ - - - - ATTACHMENT A CITY OF CHULA VISTA CARBON-LIGHT COMMUNITIES PROJECT EPA Climate Showcase Communities Grant Program In response to the EPA's Climate Showcase Communities grant solicitation, the City's proposed project will focus on retrofitting two neighborhood areas to serve as a living showcase for a "'Carbon-Light Community." A "Carbon-Light Community" is an area that maximizes their efficient use of energy,. water and other natural resources in order to minimize their associated greenhouse gas emissions or carbon footprint. As part of the proposed project, Chula Vista, in partnership with community groups, labor organizations, education districts and water and enetgy utilities, will select approximately 50 existing homes to upgrade with energy efficiency, water conservation and renewable energy improvements. These building upgrades will be further complemented by neighborhood infrastructure improvements such as the installation of higWy- efficient street hghting technologies and the planting of shade trees. Below are some of the project's key components and expected benefits: Community-Driven Effort Working with neighborhood associations and civic groups, City staff will encourage residents to recruit other homeowners on their street and nominate their neighborhoods for participation in the showcase project. Neighborhoods will be selected based on their level of homeowner participation, potential carbon savings and commitment to overall environmental sustainability. It is expected that 2 neighborhoods with 20-25 homes each will be selected. No and Low-Cost Efficiency Improvements Participating homes within each selected neighborhood will receive no and low-cost energy efficiency, water conservation and renewable energy improvements. These upgrades may include compact fluorescent lights, ENERGY STAR appliances (refrigerators and washing machines), programmable thermostats, tankless water heaters, water-efficient faucet aerators/showerheads and weather-based irrigation controllers. Participant Aggregation A benefit of the project's block-by-block approach is an increase in implementation cost- effectiveness. By aggregating participants geographically, the City can harness their collective purchasing power, improve installation efficiency and lower the cost per carbon saved. This allows the project to engage more homeowners and neighborhoods in the community. Carbon Savings The individual home and neighborhood infrastructure upgrades will produce tangible reductions in energy and water consumption, thus lowering the neighborhoods' associated carbon emiSSIOns. To accurately quantify these reductions, aU participating homes wiU receive professional energy audIts and HERS (Home Energy Rating System) Index ratings before and after the upgrades. Homeowners will also have access to real-time energy monitors to track the savings associated with the upgrades and their behavioral changes. Carbon-Light Communities Project - Summary 10[2 5-5 Public Awareness Participating homeowners will agree to host community open houses and to assist with general publicity of the "Carbon-Light Communities" project. Program materials such as website profiles, brochures. direct mailers, street signage and presentation slides will be produced and distributed throughout Chula Vista and the region to build public awareness and support. Finally, the "Carbon-Light" neighborhoods will serve as a powerful social marketing tool for the City's broader Home Upgrade, Carbon Downgrade program which is designed to provide streamlined contracting, permitting and property-secured financing for carbon-saving retrofits at up to 2,000 homes per year over the 3-year grant cycle and ultimately until every interested property owner has the opportUnity to participate. Chula Vista's proposed project will help fuel a new "green" economy by creating demand for carbon-saving products and trained employees and through partnerships with local educators, retailers, the National Electrical Contractors Association (NECA) and the International Brotherhood of Electrical Workers (IBEW). The project will provide a program template which can be easily replicated and scalable for other jurisdictions who wish to create substantiaL measurable carbon reductions. Proposed Project Budget - Includes project coordination, technical assistance, Project Manager $56,000 S69,000 performance tracking, reporting & invoicing - 5% staff time (FeR) . Environmental Resource Grant Manager Management - Includes reporting and invoicing assistance as well Administrative Support $15,000 $70,800 as contractor support services - 5% staff time (FCR) - Secretary - Includes design, production and distribution of Marketmg & Outreach $50,000 $15,000 marketing materials as well as travel to required annual EP A conference & other events - Includes costs for products such- as compact Energy Efficiency $202,500 $50,600 fluorescent lights, ENERGY STAR appliances (refrigerators and washing machines), programmable thermostats & tankless water heaters Carbon- Saving - Includes costs for products such as water-efficient Upgrades Water Efficiency $57,500 $14,400 faucet aerators/showerheads and weather-based irrigation controllers Neighborhood"} nfrastructu re $15.000 $3,000 - Includes costs & labor for shade trees and upgraded streetlights Contracted Work $75,000 $15,000 - Includes installation and energy audit costs TOTALS $471,000 $237,800 Carbon-Light Communities Project - Summary 20f2 5-6 RESOLUTION NO. 2009- RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING SUBMITTAL OF A CLIJ\'IATE SHOWCASE COMMUNITIES GRANT APPLICATION TO THE ENVIRONMENTAL PROTECTION AGENCY FOR $471,000 Ai'JD AUTHORIZING THE CITY MANAGER OR HIS DESIGNEE TO EXECUTE ALL DOCUMENTS NECESSARY TO OBTAIN AND MANAGE GRANT FUNDS WHEREAS, the Environmental Protection Agency's Climate Protection Partnership Division (EPA) is soliciting proposals for their Climate Showcase Communities grant program which was created to establish greenhouse gas emission reduction demonstration projects; and WHEREAS, in response, City staff has prepared a $471,000 proposal to retrofit two neighborhood areas to serve as a living showcase for "Carbon-Light Communities."; and WHEREAS specifically, Chula Vista will select approximately 50 existing homes to upgrade with energy efficiency, water conservation and renewable energy improvements; and WHEREAS, these building upgrades will be further complemented by neighborhood infrastructure improvements such as the installation of highly efficient street lighting technologies and the planting of shade trees; and WHEREAS, the "Carbon-Light" neighborhoods will serve as a social marketing tool for the City's broader Home Upgrade, Carbon Downgrade program which is designed to provide streamlined contracting, permitting and property-secured financing for carbon-saving retrofits at over 2,000 homes over the next 3 years; and WHEREAS, the project budget, if funded, would cover all staff, material and general implementation costs, and would leverage the City's existing Energy Efficiency & Conservation Block Grant and SDG&E Local Government Partnership funds; and WHEREAS, the project is estimated to reduce each participating property-owner's annual utility costs by $450; and WHEREAS, EPA was established to reduce greenhouse gases (GHG) by creating cost- effective partnerships with various community sectors including local municipalities and public agencies; and WHEREAS, the EPA has allocated $10 million to its Climate Showcase Communities grant program to establish greenhouse gas emission reduction demonstration projects, build local capacity to foster broader climate action and serve as replicable models for other local goverrunents across the nation; and J:\AllOrney\FINAL RESOS'\:OO9\07 21 09\C;imale Sl1owc.a'le doc 5-7 Resolution No. 2009- Page 2 WHEREAS, the City, in partnership with community groups, labor organizations, education districts and water and energy utilities, will encourage residents to recruit other homeowners on their street and nominate their neighborhoods for participation in the showcase proj ect; and WHEREAS, neighborhoods will be selected based on their level of homeowner participation and commitment to overall environmental sustainability; and WHEREAS, participating homes within each selected neighborhood will receive no-cost energy efficiency, water conservation and renewable energy improvements; and WHEREAS, in return, the participating homeowners will agree to allow their energy savings to be tracked, to host community open houses, and to assist with general publicity of the "Carbon-Light Communities" project; and WHEREAS, these individual home upgrades will be complemented by neighborhood infrastructure improvements such as highly-efficient street light retrofits and shade tree plantings to provide an even more comprehensive, dramatic living model; and WHEREAS, the proposed project's budget would fully fund the individual property improvements, neighborhood infrastructure upgrades, project management and marketing costs; and WHEREAS, existing utility incentives and rebates would also be integrated to improve the project's cost-effectiveness and expand its positive community impact. NOW, THEREFORE, BE IT RESOLVED the City Council of the City of Chula Vista does hereby approve submittal of a Climate Showcase Communities Grant Application to the Environmental Protection Agency for $471,000. BE IT FURTHER RESOLVED, that the City Council of the City of Chula Vista does hereby authorize the City Manager or his designee to execute all documents necessary to obtain and manage grant funds. Presented by Approved as to form by Michael Meacham Director of Conservation and Environmental Services '---- J:'v\rtom~y\FlNAL RESOSU009\07 21 09\Clirnalc Showcase. doc 5-8