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HomeMy WebLinkAbout2010/12/07 Item 4 CITY COUNCIL AGENDA STATEMENT ~!~ ClTYOF ~~~ (HULA VISTA DECEMBER 7, 2010, Item "". SUBMITTED BY: RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AMENDING THE 2011 BUDGET (1) TO APPROPRIATE $12,660 IN UNANTICIPATED REVENUE TO THE CONSERVATION & ENVIRONMENTAL SERVICES DEPARTMENT BUDGET AND (2) TO TRANSFER $210,000 IN ENERGY EFFICIENCY & CONSERVATION BLOCK GRANTS INTO 'CAPITAL EXPENDITURES' WITHIN THE CITY'S AMERICAN RECOVERY AND REINVESTMENT ACT FUND DIRECTOR OF CONSERVATION ~NVIRONMENTAL SERVICES ~ DIRECTOR OFP;tj WORKS~\ 'Z:.:: CITY MANAGER ~ ASSISTANTCIT MANAGER~ ITEM TITLE: REVIEWED BY: 4/STHS VOTE: YES [K] NO D SUMMARY To support implementation. of a variety of community environmental programs, staff is requesting two budget amendments. First, staff is requesting that $12,660 in unanticipated revenue from the City's participation in SDG&E incentive programs be appropriated to the Department of Conservation & Environmental Services' budget, so that it can be used to provide additional energy and water conservation services. Secondly, staff is requesting that $210,000 be transferred from "Supplies & Services" to "Capital Expenditures" within the American Recovery & Reinvestment Act Fund to provide community energy efficiency incentives under the City's Home Upgrade. Carhon Downgrade program. ENVIRONMENTAL REVIEW The Development Services Director has reviewed the proposed activity for compliance with the California Environmental Quality Act (CEQA) and has determined that the proposed action(s) quahfies fur a Class 8 categorical exemption pursuant to Section 153.08 [Actions by Regulatory Agencies for Protection of the Environment] of the State CEQA Guidelines because the energy savings resulting from the energy efficiency programs will contribute to reducing ChuIa Vista's greenhouse gas or "carbon" emissions, 4-1 DECEMBER 7, 2010, Item~ Page 2 of3 thus improving mr quality. Therefore, no further CEQA environmental review is neeessary. RECOMMENDA nON Couneil adopt the resolution. BOARDS/COMMISSION RECOMMENDA nON Not App]ieable. DISCUSSION Staff is requesting two budget amendments in order to support implementation of a variety of environmental programs which help Chula Vista residents and businesses reduce their monthly utility costs and contribute to redueing citywide greenhouse gas or "carbon" emissions. The tlrst budget amendment would appropriate $12,660 in unantieipated revenue from San Diego Gas & Electric's (SDG&E) Cool Planet and Energy Effieieney Business Ineentive programs to the Department of Conservation & Environmental Serviees' budget. The Cool Planet Program reimburses loeal ageneies and businesses for eosts assoeiated with preparing and verifying their greenhouse gas emission inventories. With Chula Vista's reeent suceessful third-party verification of its 2009 Greenhouse Gas Emissions Inventory through The Climate Registry, the City will be reeeiving a $6,000 reimbursement eheek for the costs. An additional $6,660 from the SDG&E Energy Efficieney Business Ineentive program was received for past energy- saving improvement projeets at Poliee Headquarters and Loma Verde Aquatic Center. By appropriating the $12,660 in unanticipated revenue into the Department of Conservation & Environmenta] Services' budget, staff can re-invest the funds into providing more energy and water efficiency services. The second budget amendment would transfer $210,000 of existing Energy Efficiency & Conservation Block Grants (EECBG) from "Supplies & 'Services" to "Capital Expenditures" within the American Recovery & Reinvestment Act Fund. The transfer is required in order for statT to implement the latest component of the City's Home Upgrade, Carbon Downgrade program which provides financial assistance to businesses and residents interested in installing energy-saving equipment and appliances. Specifically, the transferred funds will be used to provide community members, who participate in SDG&E's Whole Building Retrofit or Business Energy Et11cieney Incentive progranis, a City-sponsored matehing incentive up to $4,000. 1n addition to reducing participants' monthly energy and water costs, the Home Upgrade. Carbon Downgrade Program helps stimulate loeal retail sales, green job training, and employment. The Home Upgrade. Carbon Downgrade program also eontributes to the goals outlined in Measure #5 of the Council-approved Climate Measures Implementation Plans. 4-2 DECEMBER 7, 2010, Item 4- Page 3 of 3 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 1 8704.2(a)(1 ) is not applicable to this decision. CURRENT YEAR FISCAL IMP ACT The $12,660 appropriation has no net-impact to the General Fund, because these one- time revenues will offset the one-time expenditnres. For the EECBG budget transfer, there would be no direct impact on the City's General Fund. EECBG funds would cover all expenses associated with new community incentives under the Home Upgrade. Carbon Downgrade program. ONGOING FISCAL IMPACT The $12,660 appropriation to the General Fund is a one-time activity, so there are no ongoing fiscal impacts associated with the budget amendment. For the EECBG fund budget transfer, there would be no direct impact on the City's General Fund in futnre years. The new incentives through the Home Upgrade. Carbon Dml'ngrade progranl would reduce energy and water use in ilie community which may negligibly impact revenue from energy franchise fees and the utility users' tax in the future. However, the program also helps to improve property values and create local jobs. ATTACHMENTS Attachment A ~ Summary of Climate Mcasnres Implementation Plans. Prepared by: Brendan l!-eed, Environmental Resource Afanager, Conservation & Envirunmentu/ Services 4-3 ATTACHMENT A ~\~ ~ CITY OF CHULA VISTA CLIMATE PROTECTION MEASURES mY OF CHULA VISTA On July 10, 2008 City Council adopted implemcntation plans for seven measures. which were designed to reduce the City's greenhouse gas or "Carbon" emissions and were originally recommended by the City's Climate Change Working Group - comprised of residents, businesses and community representatives. The implementation plans outline the City's detailed strategy for initiating, funding and tracking the individual measures. Although partial implementation will begin immediatcly, the City will be pursuing a variety of funding sources over the next 6 months to ensure the measures' full and long-term implementation. A summary of each measure, as approved by City Council, is outlined below: I. Clean Vehicle Replacement Policy for City Fleet When City fleet vchicles are retired, they will be replaced through the purchase or lease of alternative fuel or hybrid substitutes. In addition, the City fleet will begin to pursue installing new fuel tanks to allow heavy-duty vehicles to convert to biodiesel fuel immediately. 2. Clean Vehicle Replacement Policy for City-Contracted Fleets As contracts for City-contracted fleet services (such as transit buses, trash haulers and street sweeper trucks) are renewed, the City will encourage contractors to replace their vehicles with alternative fuel or hybrid substitutcs through the contract bid process. ]n addition, the City will pursue implementing two hydrogen vehicle demonstration projects. 3. Business Energy Assessments Although not mandatory, businesses will be encouraged to partIcIpate in a no cost energy assessment of their facilities to help identify opportunities for them to reduce monthly energy costs. The business assessment will be integrated into the existing business licensing process and codified through a neW municipal ordinance. 4. Green Building Standard Chula Vista will implement a citywide, mandatory green building standard for new construction and major renovations. The new standard will have 3 main components: (I) a minimum cncrgy efficiency (carbon equivalent) requirement of ] 5% above Title 24 - 2005, (2) the early adoption of the new California Green Building Codes for all residential and commercial projects and (3) a Carbon Offset Fee availablc for projects not meeting the 15% above Title 24 threshold. The City will re-evaluate its Green Building Standard in summer 2009 when the revised Title 24 becomes effective. 5. Solar & Energy Efficiency Conversion Program The City will create a community program to provide residents and businesses a streamlined, cost-effective opportunity to implement energy efficiency improvements and to install solar/renewable energy systems on their properties. The City will develop a funding mechanism to allow program participants to voluntarily choose to place the 4-4 improvement costs on their property's tax rolls, thereby avoiding large upfront capital costs. In addition, the program will promote vocational training, local manufacturing, and retail sales opportunities for environmental products and services. To help stimulate the private-sector renewable market and lower the cost for installing renewable energy systems on new homes, the City will require all new residential buildings to include pre-wiring and pre-plumbing for solar photovoltaic and solar hot water systems. respectively. 6. Smart Growth Around Trolley Stations The City will continue to implement the "Smart Growth" design principles, which promote mixed-use and walkable and transit-friendly development, particularly in and around the E, H and Palomar troltey stations. These principles were emphasized in the revised Chula Vista General Plan and the Urban Core Specific Plan. In particular, the City will initiate site planning, design studies and Specific Area Plan development to further support "Smart Growth" development that complements greenhouse gas reductions. 7. Turf Lawn Conversion Program The City will create a community program to provide residents and businesses a streamlined, cost-effective opportunity to replace their turf lawns with water-saving landscaping and irrigation systems. Some municipal turf lawn areas (such as medians, fire stations and non-recreational park areas) will also be converted to act as public demonstration sites and to reduce monthly water costs. The City will establish the model for water-wisc landscaping for new development through an update of its Municipal Landscape Ordinance and Water Conservation Plan Guidelines. This multi-departmental implementation plan represents a strong commitment on the part of the Chula Vista City Council and staff to reduce greenhouse gas emissions. The City Manager is pcrsonally engaged in ensuring the success of the implemcntation plan and wilt routinely report all progress to the Council and the public. Chula Vista's precedent-setting climate change measures reflect the continuing commitment by the city to lead the region in progressive environmental policy. For more information about the City of Chula Vista's climate protection efforts, please visit http://www.chulavistaca.gov/clean/cunservation/ or contact the Department of Conservation & Environmental Services at 619-409-3893 or ConservationluJ.ci.chula-vista.ca.us 4-5 RESOLUTION NO. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AMENDING THE 2011 BUDGET (I) TO APPROPRIATE $12,660 IN UNANTICIPATED REVENUE TO THE CONSERV A TION & ENVIRONMENTAL SERVICES DEPARTMENT BUDGET AND (2) TO TRANSFER $210,000 IN ENERGY EFFICIENCY & CONSERVATION BLOCK G~"..NTS INTO 'CAPITAL EXPENDrTURES' WITHIN THE CITY'S AMERICAN RECOVERY AND REINVESTMENT ACT FUND WHEREAS, stall is requesting two budget amendments in order to support implementation of a variety of environmental programs which help Chula Vista residents and businesses reduce their monthly utility costs and contribute to reducing citywide greenhouse gas or "carbon" emissions; and WHEREAS, the first budget mnendment would appropriate $12,660 in unanticipated revenue from San Diego Gas & Electric's (SDG&E) Cool Planet and Energy Efficiency Business Incentive programs to the Department of Conservation & Environmental Services' budget; and WHEREAS, the Cool Planet Program reimburses local agencies and businesses for costs associated with preparing and verifying their greenhouse gas emission inventories; and WHEREAS, with Chula Vista's recent successful third-party verification of its 2009 Greenhouse Gas Emissions Inventory through the Climate Registry, the City will be receiving a $6,000 reimbursement check for the costs; and WHEREAS, an additional $6,660 from the SDG&E Energy Efticiency Business Incentive program was received for past energy-saving improvement projects at Police Headquarters and Lorna Verde Aquatic Center; and WHEREAS, by appropriating the $12,660 in unanticipated revenue into the Department of Conservation & Environmental Services' budget, staff can re-invest the funds into providing more energy and water efficiency service; and WHEREAS, the second budget amendment would transfer $210,000 of existing Energy Efficiency & Conservation Block Grants (EECBG) from "Supplies & Services" to "Capital Expenditures" within the American Recovery & Reinvestment Act Fund; and 4-6 Resolution No. Page 2 WHEREAS, the transfer is required in order for staff to implement the latest component of the City's Home Upgrade, Carbon Downgrade program which provides financial assistance to husinesses and residents interested in installing energy-saving equipment and appliances; and WHEREAS, the transferred funds will be used to provide community members, who participate in SDG&E's Whole Building Retrofit or Business Energy Efficiency Incentive programs, a City-sponsored matching incentive up to $4,000; and WHEREAS, in addition to reducing participants' monthly energy and water costs, the Home Upgrade, Carbon Downgrade Progrum helps stimulate local retail sales, green job training, and employment; and WHEREAS, the Home Upgrade, Carbon Downgrude program also contributes to the goals outlined in Measure #5 of the Council-approved Climate Measures Implementation Plans. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Chula Vista does hereby: 1. Amend the 2011 budget to appropriate $12,660 in unanticipated revenue to the Conservation & Environmental Services Department budget. 2. Amend the 2011 budget to transfer $210,000 in Energy Efficiency & Conservation Block Grants into capital expenditures within the City's rican Recovery and Reinvestment Act fund. Presented by Michael T. Meacham Director of Conservation & Env. Services 4-7