AGENDA #4e
MEMORANDUM
TO: Mayor and Town Council
FROM: W. Calvin Horton, Town Manager
DATE: April 10, 2006
The purpose of this memorandum is to recommend that the Town Council accept a Sustainable Community Development Grant in the amount of $30,000 from the North Carolina State Energy Office. The attached resolution would authorize the Manager to accept a $30,000 grant awarded to the Town by the State Energy Office for the installation of a photovoltaic system at Fire Station #1 and would authorize the Manager to use $8,000 from the Public Safety Bond Fund issued in 2003 and authorized in 1996 to satisfy the local matching funds requirement of the grant. The attached ordinance would amend the budget for the Public Safety Bond Fund to reflect acceptance of the $30,000 grant.
BACKGROUND
In February 2004, the State Department of Administration and the State Energy Office awarded the Town of Chapel Hill a $91,200 grant as part of the Sustainable Community Development Grant program, which is provided funding for energy efficiency and renewable energy projects.
On March 22, 2004, the Town Council authorized the Town to accept the grant and the Manager to implement the program. The Council also authorized matching funds equal to 25 percent of the total budget. One element in the scope of work for this project, the installation of photovoltaic solar panels at Fire Station #1, could not be completed by the contractual project deadline of June 30, 2005. Project elements that were completed included, installation of a solar hot water system, installation of energy efficient windows, installation of upgraded energy efficient air conditioning condensing units, and installation of soffit insulation.
On June 8, 2005, the Town submitted a request for $35,000 in “gap funding” to the State Energy Office to complete the photovoltaic system installation (please see Attachment 1). The gap funding would be used in lieu of the original Sustainable Community Grant funding.
DISCUSSION
On January 26, 2006, the State Energy Office notified the Town that our request for a gap funding grant to complete the photovoltaic system installation at Fire Station #1 was approved in the amount of $30,000 rather than the $35,000 that was requested. The gap funding grant contract documents require that the Town provide matching funds for this project in an amount not to exceed $8,000.
Last year, the Town received bids for a 2.4 to 2.5 kilowatt photovoltaic system ranging in cost from $27,610 to $33,000; therefore, we believe that this project can be accomplished within the funds provided by the $30,000 grant and the $8,000 local match.
RECOMMENDATIONS
That the Council adopt the attached resolution authorizing the Manager to accept a State Energy Office Sustainable Community Development Grant award of $30,000 and authorizing the Manager to use $8,000 from the Public Safety Bond Fund to satisfy the local matching funds requirement of the grant.
That the Council adopt the attached ordinance to amend the 1996 Public Safety bond fund to reflect the acceptance of the $30,000 grant.
ATTACHMENTS
1. June 8, 2005 Memo from Town Manager to State Energy Office (p. 6).