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HomeMy WebLinkAboutReso 2009-227RESOLUTION NO.2009-227 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA (1) ACCEPTING THE 12-MONTH PROGRESS REPORT ON CLIMATE PROTECTION MEASURES IMPLEMENTATION, AND (2) DIRECTING STAFF TO RETURN WITHIN 180 DAYS WITH ANOTHER IMPLEMENTATION UPDATE WHEREAS, the City has participated in the United Nations Framework Convention on Climate Change, ICLEI Cities for Climate Protection Campaign and the Conference of Mayor's Climate Protection Agreement; and WHEREAS, through this involvement and the Chula Vista Carbon Dioxide Reduction Plan, the City has committed itself to reducing its greenhouse gas (GHG) emissions 20% below 1990; and WHEREAS, the City's 2005 GHG emissions inventory indicated that annual citywide GHG levels had increased by 35% since 1990 due primarily to residential growth; and WHEREAS, the City did make significant progress in reducing annual per capita emissions by 17% and municipal operation emissions by 18% mainly due to energy-efficient traffic signal retrofits; and WHEREAS, as a result, the City Counci] directed staff to convene a Climate Change Working Group (CCWG) to develop recommendations to add to the City's existing Carbon Dioxide Reduction Plan and its portfolio of programs which would further reduce the community's greenhouse gas emissions; and WHEREAS, the CCWG -comprised of residential, business and community-group representatives -evaluated over 90 climate protection measures and chose seven measures to ultimately recommend to City Council; and WHEREAS, on April 1, 2008, City Council adopted the CCWG's seven recommendations and directed staff to execute the recommendations based on more detailed implementation plans that included input from a broader range of stakeholders, identified potential funding mechanisms and established timelines, budgets, and evaluation criteria; and WHEREAS, after formally approving the measures' implementation plans on July 10, 2008, City Council authorized staff to implement the plans and pursue additional funding sources to ensure their full and long-term implementation; and WHEREAS, the seven new measures plus the City's original Carbon Dioxide Reduction Plan constitute Chula Vista's comprehensive Climate Action Plan; and Resolution No. 2009-227 Page 2 WHEREAS, the new measures focus on lowering energy and water consumption, installing renewable energy systems, promoting alternative fuel vehicle use and designing pedestrian and transit-friendly communities; and WHEREAS, staff continues partial implementation of most measures based on existing funding levels and has secured some additional external funds to launch new program components and to invest in new capital improvement projects; and WHEREAS, while these additional funds will allow broader implementation of the seven climate protection measures, funding levels aze still a limiting factor to the measures' full implementation; and WHEREAS, staff continues to pursue the Council-approved financing strategy outlined in the original plans; and WHEREAS, through the Federal Energy Efficiency & Conservation Block Grant (EECBG) program, the City will be receiving almost $2 million to reduce energy consumption and stimulate the local economy 1; and WHEREAS, the funding will allow the City to move forward with a number of projects that advance the City's Climate Action Plan by installing a new biodiesel fuel tank at the Public Works Corp Yazd and converting 128 diesel-fueled fleet vehicles to the alternative fuel source (Measure #1-City Fleet Clean Vehicle Replacements), expanding on-site municipal solaz systems up to 1 megawatts in size (Measure #5-Energy Efficiency & Renewable Energy Conversions) and provide direct incentives and loans to homeowners interested in energy (Measure #5) and water efficiency (Measure #7-Turf Removal & Landscape Water Efficiency) retrofits; and WHEREAS, the City's application is currently being reviewed by the Department of Energy and funds should be received by October 2009; and WHEREAS, in addition to the EECBG, staff has applied for other competitive grant funds including Ca1FIRE's "Innovative Urban Greening" grant program ($53,000) (Measure #7) and the EPA's "Climate Showcase Communities" grant program ($471,000) (Measures #5 and #7); and WHEREAS, if awarded, both grants would further expand climate protection measures implementation and contribute to citywide carbon reductions. Staff will also continue to pursue additional state, federal and private grant opportunities at the local and regional level as they become available; and WHEREAS, the City has been allocated $4.6 million (3-year total) through San Diego Gas & Electric's Local Government Partnership program as part of their 2009-2011 Energy Efficiency Program Portfolio (EEPP); and Resolution No. 2009-227 Page 3 WHEREAS, Local Government Partnerships are designed to empower cities to develop energy efficiency programs and services at their facilities and within the community. Because the EEPP has yet to be formally approved by the California Public Utilities Commission, SDG&E is providing $91,968 in monthly "bridge funding" to the City until the new funding is approved; and WHEREAS, the 2009-201 I Chula Vista/SDG&E Partnership, expected to be &nalized by January 2010, will provide support for staff time (salazies and benefits for 6 full-time and 7 part- time staff members) and program costs for Measures #3 (Business Assessments), #4 (Green Building Standard) and #5 through December 2011; and WHEREAS, staff is currently involved in negotiations with San Diego Gas & Electric over Chula Vista's energy franchise fee; and WHEREAS, currently, the City charges a fee of 1.25% and 2.00% on citywide electricity and natural gas sales; and WHEREAS, under the financial strategy, the City would increase the franchise fee to fund carbon-saving improvement projects in the community and at municipal facilities, but the new rate would still be under or compazable to other local jurisdiction's energy franchise fees; and WHEREAS, the new energy franchise fee is expected to be presented to Council for consideration in January 2010, and if approved, would create a new, long-term revenue source for the implementation of all seven climate protection measures; and WHEREAS, a Local Fee Authority, which would be created through new State legislation, would enable jurisdictions to place a local surcharge on utility bills (such as energy, water or sewer) to fund local cazbon reduction programs and services; and WHEREAS, in coordination with local State representatives, staff plans to help drafr the specific bill language and garner political support from other municipalities and state officials over the next 6 months; and WHEREAS, similaz to franchise fees, the Local Fee Authority would create a new, long- term revenue source for the implementation of all seven climate protection measures; and WHEREAS, staff expects to help finalize bill language as part of the State Legislature's 2010 session; and WHEREAS, the additional building permit review and inspection time associated with implementing a Green Building Standard (Measure #4) would be funded through revised development fee schedules; and WHEREAS, the new fee, part of the City's broader Master Fee Study, will be finalized and presented to City Council for consideration in December 2009; and Resolution No. 2009-227 Page 4 WHEREAS, the Council-approved financial strategy outlined the use of municipal bonds to support measures implementation; and WHEREAS, a municipal bond would be utilized to finance two cazbon-saving project types -public purpose projects (such as energy-efficient streetlight retrofits and alternative fuel vehicle fleet purchases) and community retrofit projects (such as energy and water efficiency upgrades in homes and businesses); and WHEREAS, regazdless of project type, the municipal bond's debt service would be offset by the resulting energy or fuel cost savings and repaid by beneficiazies of those savings; and WHEREAS, last yeaz, the Internal Revenue Service also expanded two tax credit bond programs, Certified Renewable Energy Bonds (CREBs) and Qualified Energy Conservation Bonds (QECBs), to specifically help local governments implement carbon reduction projects by offering low interest financing options; and WHEREAS, staff plans to finalize a public bond package for City Council consideration over the next 6 months in anticipation of a June 2010 public vote; and WHEREAS, City staff will continue to aggressively pursue the funding strategy which was outlined in the Council-approved implementation plans and updated through this 12-month progress report; and WHEREAS, staff will formally return to City Council within at least 180 days to provide further clarity on the climate measures' overall implementation and status on their financing. NOW, THEREFORE, BE IT RESOLVED the City Council of the City of Chula Vista does hereby: Accept the 12-month Progress Report on Climate Protection Measures Implementation. 2. Direct staff to return within 180 days with another implementation update. Presented by ~~~~~~ ~~ shaeL Director of Conservation and Environmental Services Approved as to form by j ~ ~~ ~~ Bart C. Mies d City Atto y Resolution No. 2009-227 Page 5 PASSED, APPROVED, and ADOPTED by the City Council of the City of Chula Vista, California, this 15th day of September 2009 by the following vote: AYES: Councilmembers: Bensoussan, Castaneda, Ramirez, and Cox NAYS: Councilmembers: None ABSENT: Councilmembers: McCann ~~~' Cheryl Cox, Iayor ATTEST: dt-(/n~.~ . ,~ o~~;,~ Donna R. Noms; CMC, City Clerk STATE OF CALIFORNIA COUNTY OF SAN DIEGO CITY OF CHULA VISTA I, Donna R Norris, City Clerk of Chula Vista, California, do hereby certify that the foregoing Resolution No. 2009-227 was duly passed, approved, and adopted by the City Council at a regular meeting of the Chula Vista City Council held on the 15th day of September 2009. Executed this 15th day of September 2009. ~ ~~ Donna R. Norris, CMC, City Clerk