HomeMy WebLinkAboutCity Council Resolution 09-072RESOLUTION NO. 09 -072
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SARATOGA
AUTHORIZING THE COUNTY OF SACRAMENTO AS THE LEAD COLLABORATIVE
ENTITY TO APPLY FOR STATE ENERGY PROGRAM FUNDS
ON BEHALF OF THE CITY OF SARATOGA
WHEREAS, the City of Saratoga recognizes that it is in the interest of the regional, state, and
national economy to stimulate the economy; create and retain jobs; reduce fossil fuel emissions; and
reduce total energy usage and improve energy efficiency within our jurisdiction; and
WHEREAS, State Energy Program (SEP) funds are available through the California Energy
Commission's SEP for grants to eligible local governments for energy efficiency, energy conservation,
renewable energy, and other energy related projects and activities authorized by the American Recovery
and Reinvestment Act of 2009 "ARRA and
WHEREAS, SEP allows for cities, counties, or groups of cities and counties in California to
apply for SEP funds on behalf of eligible local governments; and
WHEREAS, the City of Saratoga is eligible for SEP funding under the California Energy
Commission's SEP; and
WHEREAS, the City of Saratoga is proposing to collaborate with Sacramento County to
implement a program for financing the energy efficiency, energy conservation, renewable energy, and
other energy related projects and activities authorized by ARRA, which program is described in Exhibit
A for the purpose of qualifying for SEP funds from the California Energy Commission; and
WHEREAS, the City of Saratoga has considered the application of the California
Environmental Quality Act (CEQA) to the approval of the program for financing energy efficiency,
energy conservation, renewable energy, and other energy related projects and activities authorized by
ARRA described in Exhibit A; and
NOW, THEREFORE, BE IT RESOLVED, that in compliance with the CEQA, the City Council of
the City of Saratoga does hereby find that the approval of the program for financing energy efficiency,
energy conservation, renewable energy, and other energy related projects and activities authorized by ARRA
described in Exhibit A is not a "project" under CEQA, because the program does not involve any
commitment to a specific project which may result in a potentially significant physical impact on the
environment, as contemplated by Title 14, California Code of Regulations, Section 15378(b)(4)).
BE IT ALSO RESOLVED, that the City Council of the City of Saratoga authorizes Sacramento
County to submit a collaborative application on its behalf to the California Energy Commission for up to
$16.5 million in SEP funds for the program for financing energy efficiency, energy conservation,
renewable energy, and other energy related projects and activities authorized by ARRA described in
Exhibit A.
BE IT ALSO RESOLVED, if recommended for funding by the California Energy Commission, the
City of Saratoga authorizes Sacramento County to accept a grant award on its behalf and to enter into all
necessary contracts and agreements, and amendments thereto, on its behalf to implement and carry out
the program for financing the project /s described in Exhibit A.
PASSED AND ADOPTED by the Saratoga City Council at a regular meeting held on the 16 day of
December 2009 by the following vote:
AYES: Councilmember Chuck Page, Howard Miller, Vice Mayor Jill Hunter,
Mayor Kathleen King
NOES: None
ABSTAIN: None
ABSENT: Susie Nagpal
ATTEST:
Ann Sullivan, City Clerk
SIGNED:
/(7 Kathleen M. King, May
Budget Basics
Exhibit A
California Energy Commission State Energy Program
CaliforniaFIRST Collaborative Proposal
Summary of Proposal Scope Budget Framework
Description of Program Proposal
Under the lead applicant, Sacramento County, the 14 counties eligible to participate in the pilot stage of
the CaliforniaFIRST Program are collaborating on a proposal to the California Energy Commission
State Energy Program for a grant of up to $16.5 million. The grant funds will be used to offset initial
fees associated with bond issuance, start-up costs for the 14 counties and all incorporated cities, an
interest rate buy -down, local marketing /education/training /outreach, local coordination, and grant
administration to support the launch of the CaliforniaFIRST municipal financing program.
CaliforniaFIRST Program County Participants and Proposal Collaborators
Alameda Sacramento
Fresno San Benito
Kern San Diego
Monterey San Luis Obispo
San Mateo
Santa Clara
Santa Cruz
Solano
Ventura
Yolo
1. CaliforniaFIRST financing costs and fees -$6M)
Guided by California Communities and the CaliforniaFIRST Program Administrator Renewable
Funding, this program element will:
buy -down the interest rate on the initial round(s) of projects financed by the CaliforniaFIRST
Program,
cover fixed costs associated with initial bond counsel, bond disclosure, fiscal agent and bond
rating,
cover legal and validation costs, and
cover the deployment of technology (web portal) to support local programs.
2. Grant/Contract Administration Steering Committee Liaison: $2.0M)
On behalf of the applicant agency, grant /contractor administration duties include gathering relevant
reporting information from all partner jurisdictions and CaliforniaFIRST, financial oversight and
invoicing, contract administration, tracking, monitoring, and oversight of deliverables. In addition, the
grant administrator will serve as the partner liaison between all participating steering committees to
maintain coordination and consistency on the local marketing efforts between parties as well as provide
marketing and contract technical assistance, training, and advice to participating agencies. The Grant
Administrator will also coordinate local efforts with those programs funded under the California
Comprehensive Residential Building Retrofit Program.
3. Regional Program Coordination Marketing: $8.5M)
In line with the overall project goals, funding has been budgeted on a regional basis to each of the six
primary program regions in the following amounts, based on total number of Counties:
Capitol Region (Sacramento/Yolo): $1,800,000
Central Valley Region (Fresno/Kern): $1,150,000
Bay Area Region: (Alameda/San Mateo /Santa Clara/Solano): $2,300,000
North Central Coast Region: (Monterey /Santa Cruz /San Benito): $1,725,000
South Central Coast Region: (Ventura/San Luis Obispo): $1,150,000
Southern California Region: (San Diego): $575,000
This final program element serves to provide each region with the resources necessary to help facilitate
the rapid adoption of energy efficiency and renewable energy generation system installations throughout
the target area by connecting property owners to any and all available on- the ground or proposed
resources, and services, providing a streamlined framework for easy navigation, reduced out -of- pocket
expenses, and overall increased cost effectiveness for both participants and the program overall. The
focus of the program will be to create region -wide (or county -wide, where appropriate) cooperative
project design, implementation, marketing, and coordination to maximize economies of scale, take
advantage of overlapping markets, and ultimately allow each dollar to go further to benefit all parties.
Financing Costs and Fees
A. Financing Costs
As Program Administrator of the California Communities CaliforniaFIRST Program, Renewable
Funding will coordinate and provide program administration, financing, and legal services to support a
robust statewide municipal financing program. Specific financing costs are concentrated at the start of
the program and result in increased fees to a program participant, and therefore a higher effective
interest rate. In order to lower the interest rate, the SEP funds will be used to cover bond disclosure
counsel, bond rating fees, and a bond fiscal agent. In addition, a direct interest rate buy -down will be
employed to achieve a bond rate that is equivalent to an A -rated bond, which is likely to be the bond
rating later in the program.
B. Set -up Fees
A funding request equivalent to the city and county set -up fees will be included in the proposal. The
costs for initial legal work and validation proceedings will be covered by this request. Additionally, the
costs of establishing county web portals, importing local assessor's data, and maintaining the website
will be part of this funding request.
Suggested Major Marketing Program Coordination Marketing Program Elements
A. Agency Coordination Steering Committee Participation
In recognition of the additional coordination time required to get new programs off the ground,
individual counties may elect to include a modest amount of staff time for agency representatives to
participate in the program steering committee and other activities to drive marketing program design,
educational /marketing material development, form and protocol development, etc. By investing this
time at the onset, we are able to develop a self sustaining program for the long term. County agencies
(that is, auditor /tax collector /controller) will receive a small percentage, incorporated into each loan, to
cover regular ongoing program administration costs associated with maintaining the tax roll and
collecting annual assessments in years beyond the grant term. Some jurisdictions may instead wish to
contribute this time as project leveraged funds /resources to increase overall program cost effectiveness
based on their individual needs and resources. Regional partnership may also elect to use a portion of
the resources from this program element toward informal or formalized staff/personnel training within
their jurisdictions.
B. Education Outreach/ Marketing
Successful program adoption requires thoughtful design, convenient procedures, and a robust program
education component to encourage and energize program participation. Achieving this goal, the project
team will create clear, consistent, and thematic program branding imagery, educational and recruitment
tools such as program brochures. The program will be supported by the CaliforniaFIRST web portal
and links to new and existing partner and complementary websites, frequently asked questions,
applications, and/or other program materials. In addition, the project will engage a wide stretching
Component
Overall
Gross Benefit
Per County
Net Benefit
Per County
1.CaliforniaFIRST Costs Fees
39%
428,571.43
2. Grant Administration Technical Assistance
10%
107,142.86
3A.Steering Advisory Committee
10%
115,000.00
115,000.00
3B. Education, Outreach, Incentives,
Marketing
23%
258,750.00
258,750.00
3C. Community Coordination
18%
201,250.00
201,250.00
Total
100%
1,110,714.29
575,000.00
network of partners to promote, recruit, and disseminate program information utilizing existing
mechanisms of door -to -door outreach, community event tabling, workshops and presentations, or other
appropriate energy efficiency and complementary program participation activities. Major elements
might include:
Outreach Promotional Materials: Brochures, Door hangers, Postcard Mailers, Bill Inserts, etc.
Program Marketing Advertisements: Print Ads, Radio /TV Ads, PSA Production
Promotional Outreach Events, Trade Shows or Community Workshops
Homeowner/Business /Contractor /Staff Training Seminars
Sustainability Site Signage
Green Building and/or LEED Certification Technical Assistance
C. Community Coordinator Partner Liaison Supplies
The community coordinator is envisioned to serve as the single point regional program coordinator to
unify, inform, collaborate, and engage all program parties in relation to local coordination and marketing
efforts; respond to public inquiries; facilitate the education, outreach, marketing, recruitment; and
promote program adoption by the target community. In addition the coordinator is responsible for
coordinating with the grant administrator, tracking/reporting necessary progress and metrics,
meeting/exceeding grant milestones and targets, incorporating required complementary program
components, and working with CaliforniaFIRST to assure QA/QC measures are applied to all
participating properties. Specific tasks will be driven by the overall project goals as well as the specific
needs of each region and may include:
Coordination with Grant Administrator /Steering Committee Liaison
Marketing Coordination with CaliforniaFIRST Municipal Finance District
Facilitation of local Regional Steering Committee Members and Partners
Assist with Implementation Strategy, Documents, Procedures Protocols Development
Guide Promotion, Marketing, Education, Recruitment Program Information Dissemination
Link Program Participants to Regional Energy Efficiency Complementary Programs
Connect to Concurrent Complementary Workforce Development Training/Graduates
Administer Regional Program Budget, Competitive Bidding, Other Program Transparency Reqs
Track and/or compile, Monitor Evaluate Program Progress, Energy Savings, GHG Reductions
Achieved, Partner Leveraged Funds and Ancillary Environmental Benefits
Sample County Budget
A sample budget based on the above framework is provided below. Please note that these amounts are
subject to change based on the actual needs of each participating jurisdiction as well as feedback
obtained regarding funder and partner thresholds for competitiveness.
Grant Development Team:
County of Sacramento —Lead Agency (Applicant), will oversee grant writing, provide final edits
and required signatures, and submit finalized proposal on behalf of entire collaborative team based
on the approved proposed program scope and budget framework
Ecology Action Partner Grant Writer (Lead on Marketing), will develop narrative based on
proposed program scope and budget framework, especially as it pertains to local coordination and
marketing project administration, marketing/contract technical assistance, regional coordination, and
marketing, to meet all grant requirements and maximize proposal competiveness.
Renewable Funding Partner Grant Writer (Lead on Finance), will develop narrative based on
proposed program scope and budget framework, especially for CaliforniaFIRST Program finance
related program elements, to meet all grant requirements and maximize proposal competiveness.