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Home My WebLink AboutA -200, Background report and ResolutionCITY OF NATIONAL CITY, CALIFORNIA COUNCIL AGENDA STATEMENT MEETING DATE: May 20, 2014 AGENDA ITEM NO. ITEM TITLE: Resolution of the City Council of the City of National City authorizing the City Manager to accept grant funds in the amount of $45,000 and authorizing the establishment of appropriations and the corresponding revenue budget for staff costs associated with the Emerging Cities Program scope of work awarded through a Local Government Partnership program of San Diego Gas and Electric. PREPARED BY: Raymond Pe PHONE: 336-4421 EXPLANATION: In September 2013, San Diego Gas and Electric announced the Emerging Cities Program, a Local Government Partnership funding program available to local governments within the SDG&E service territory. The program promotes energy efficiency focused an existing buildings (residential, commercial, industrial, and municipal). SDG&E approached the City to encourage participation in the program, and in consultation with the City, prepared and filed an application on behalf of the City. Two of the activities outlined in the application were approved in April of 2014 for a total award of $113,670. Of the total award, $45,000 has been allocated to labor costs, i.e. City staff, associated with the implementation of the approved scope of work. The $68,670 balance of the award is allocated to non- labor/contractor services, which include consultant services, and will be administered directly by SDG&E. Background report attached. DEPARTMENT: APPROVED BY: FINANCIAL STATEMENT: APPROVED: ACCOUNT NO. TBD APPROVED: ENVIRONMENTAL REVIEW: Not Applicable. ORDINANCE: INTRODUCTION: FINAL ADOPTION: Finance MIS STAFF RECOMMENDATION: Adopt a resolution accepting the grant funds and authorizing the establishment of appropriations and corresponding revenue budget. BOARD / COMMISSION RECOMMENDATION: Not Applicable. ATTACHMENTS: 1. Background Report 2. Emerging Cities Program Scope of Work Attachment 1 BACKGROUND REPORT Many communities have been working to increase energy efficiency to reduce utility costs, conserve natural resources, and improve local air quality. Since 2006, the California Public Utilities Commission and investor -owned utilities such as San Diego Gas & Electric have been directly assisting cities and counties with energy efficiency efforts through "Local Government Partnership" programs. Local Government Partnerships provide resources to jurisdictions to help integrate energy efficiency into municipal policies and community programs. Local Government Partnerships, similar to statewide energy efficiency education and rebate programs, are funded through a Public Purpose Program charge on ratepayers' monthly energy bills. In September 2013, SDG&E announced the Emerging Cities Program, a Local Government Partnership funding program available to local governments within the SDG&E service territory. The program promotes energy efficiency focused on existing buildings (residential, commercial, industrial, and municipal). SDG&E, in consultation with the City, prepared and filed an application on behalf of the City. Two of the activities outlined in the application were approved in April of 2014 for a total award of $113,670. The two approved programs are 1) PACE Policy Formation and Establishment and 2) Green Business Program Expansion. PACE, Property Assessed Clean Energy, is a financing mechanism made available to property owners to implement energy efficiency upgrades. The Green Business Program Expansion would further the existing efforts of the Chamber of Commerce to promote energy efficiency to local businesses. The grant award is divided into 1) Non-labor/Contractor Services $68,670 and 2) Labor $45,000. The labor portion of the award is to the City for staff costs. The City has been proactive in the area of energy efficiency related policy efforts and actions. The Comprehensive Land Use Update adopted in 2011/2012 integrated sustainability policies and principles throughout the General Plan and various elements. A Climate Action Plan (CAP) targeting the reduction of greenhouse gas emissions was adopted as part of the comprehensive update. The City worked with the San Diego Association of Governments (SANDAG) to develop National City's Energy Roadmap, which was completed in December of 2012. The Energy Roadmap identified opportunities to further promote energy efficiency at municipal facilities and throughout the community. On December 18, 2012, the City Council resolved to participate in the South Bay Energy Action Collaborative (SoBEAC), a joint effort between the Cities of Chula Vista, National City, Imperial Beach, and Coronado. A goal of the South Bay Energy Action Collaborative is to empower participating jurisdictions to implement energy efficiency policies, including policies within the Energy Roadmap and Climate Action Plan. The SoBEAC is fully funded through the City of Chula Vista's Local Government Partnership with San Diego Gas & Electric and the California Public Utilities Commission. In addition, SANDAG provides additional technical and programmatic support to ensure successful implementation. Attachment 2 National City Emerging Cities Scope of Work Background: National City has identified two primary activities to initiate implementation of the city's Climate Action Plan and to make further headway on the city's Energy Road Map. With funding and support through San Diego Gas & Electric's Emerging Cities Program, both tasks are achievable: PACE Policy Formation and Establishment, and Green Business Program Expansion. The PACE task will involve National City staff, LeSar Development Consultants and the California Center for Sustainable Energy. If the necessary policy can be agreed upon and framework established, then it will be possible to implement a PACE program, increasing buildings' energy efficiency. The National City Chamber of Commerce, National City staff and LeSar Development Consultants will be the actors involved with the Green Business Program Expansion. This task will evaluate and update the current Green Business Program by which an increased number of businesses are reached, educated and thus a change in behaviors can be seen through increased participation in programs and services to help reduce energy consumption. Section 1 - Program Tasks 1. Task 1— PACE Policy Formation and Establishment National City will develop a PACE financing policy and bring one or more PACE options online in National City. This effort will focus on what PACE efforts are already in place in the region as well as statewide, a review of the risk and benefits to various programs, the establishment of a policy that will create a framework for PACE in National City and, finally, the adoption of one or more PACE programs. Task 1.1— Kickoff with City leadership to clarify priorities and objectives, understand risk appetite, and define questions for the PACE policy Memo Deliverable — Summary of Objectives Task 1.2 — Creation of PACE Policy Memo — Starting with the 2013 PACE white paper published by the USD Energy Policy Initiative Center, staff and consultants will review the current legal landscape of PACE, examine what other jurisdictions have done and evaluate the various PACE options for National City. The final memo will recommend a formal policy for National City to adopt as well as recommend one or more PACE programs for adoption. Deliverable — PACE Policy Memo Attachment 2 Task 1.3 — Educate City staff and other key stakeholders about PACE and recommended policy options. This task will focus on the key decision makers and interested parties that need to be involved in order to make a PACE program happen. Task 1.4 — Advise on negotiations with PACE program providers. Consultant will support city staff on negotiations with PACE provider(s). Task 1.5 — Consultant to prepare draft staff report(s) and resolution(s) for adoption as well as be available to give presentations and answer technical questions during council hearings. Deliverable — One or more Staff reports and Resolutions, depending on final program recommendations. Task 1.6 — Support PACE Program Rollout. In conjunction with the California Center for Sustainable Energy, the consultant will support rollout of all selected PACE programs including helping to develop a City marketing strategy, coordination educational meetings for community stakeholders, contractors and building owners. 2. Task 2 — Green Business Program Expansion — The National City Chamber of Commerce Green Business Program, created through collaboration with National City, regional and local partners, private companies, and the community, encourages and facilitates energy efficient business practices through education, outreach, networking, marketing, and advocacy. This effort will be expanded to include a dedicated staff person that will focus on increasing business participation in the GB program as well as SDG&E business programs. Deliverables: 1- Educate small/medium business on how to monitor their energy consumption using SDG&E "MyAccount" tools in order to reduce their energy usage. 2- Save small/medium businesses money on their utility bills by educating them on SDG&E programs and services including Direct Install and On -Bill Financing. 3- Achieve a 10% membership participation rate from the chamber to achieve area specific energy savings. Section 2 - Partners, Regional Focus, Budget & Timeline Program Partners Organization Staff A. Local Government Partner National City Brad Raulston, Executive Director Steve Manganiello, City Engineer Ray Pe, Principal Planner Attachment 2 LeSar Development Jennifer LeSar, President and CEO B. Non -Governmental Consultants Eric Engelman, Principal, Director of Partners Research and Innovation Jacqueline Reynoso, President and CEO Martha Bolanos, Office Manager and National City Chamber of Program Coordinator Commerce Armando Rodriguez, Marketing Director Stephanni Casas, Administrative Assistant Geographic Scope Tasks one and two will each have a direct impact within the jurisdiction of National City, CA. Indirect impacts will be further reaching. Implementation of a PACE program will help complete the availability of PACE throughout San Diego County. Some 15 of 18 local jurisdictions now have a PACE program. Consistent availability across the region is critical to making PACE a viable tool. Budget Table Task Labor Non-labor/Contractor Services Task 1— PACE Financing $30,000 $43,670 Task 2 — Green Business Program $15,000 $25,000 Sub Total $45,000 $68,670 Total $113,670 Timeline Task Timeframe PACE Program Development December 2013 —September 2014 Green Business Program December 2013 — December 2014 Program Overall December 2013 — December 2014