AGENDA #4r
MEMORANDUM
TO: Mayor and Town Council
FROM: W. Calvin Horton, Town Manager
SUBJECT: Acceptance of Sustainable Community Development Project Grant Award
DATE: March 22, 2004
The attached resolution would authorize the acceptance of a $91,200 Sustainable Communities Project grant that has been awarded to the Town of Chapel Hill for implementation of solar energy and energy efficiency projects. The resolution further states that the Town is committed to provide the required 25 percent match, with a portion to come from the 2003 energy efficiency bonds.
BACKGROUND
The Town submitted the grant proposal for the Sustainable Community Development Project Grant in May 2003. That month the Council approved a request from the Council Committee on Sustainability, Energy and Environment and authorized the Town’s grant application for $175,000 and pledged a local commitment of up to $43,750 as the required 25 percent local match if the proposal were fully funded.
The State Department of Administration and the State Energy Office have selected the Town of Chapel Hill to receive a grant as part of the Sustainable Communities Project grant program in the amount of $91,200.
DISCUSSION
The State has agreed to fund the following projects from the Town’s grant application as proposed by the Council Committee on Sustainability, Energy, and Environment (the original proposal is included as Attachment 1). The amount of grant funds awarded per project and the 25 percent local match, not including in-kind contributions, are shown in parentheses.
Projects that can be funded with Public Buildings Bond Funds as a Local Match
· Energy efficiency improvements throughout Fire Station No. 1 ($32,000 grant, $8,000 match). Improvements at the 7,100-square-foot building will depend on the outcome of the energy audit. Improvements could include new energy efficient windows, light sensors in bathrooms, and taking measures to minimize the loss of heating and air conditioning when the bay doors are open. There also could be opportunities for installing “solar tubes,” or skylights, which would increase the amount of natural light in the interior of the building.
· The installation of solar hot water panels on the Fire Station’s south-facing roof ($5,600 grant, $1,400 match). The Chapel Hill Solar Roofs Committee considers Fire Station Number 1 a candidate for a solar demonstration project because of the exposure to the sun and its highly visible location on Airport Road. The size of the system should be sufficient to meet the demand for hot water at the station.
· The installation of photovoltaic panels ($32,000 grant, $8,000 match). The Fire Station site offers two possible locations for installing photovoltaic panels – either a solar-tracking system mounted on poles in a grassy area by Airport Road, or on the building’s roof. The Town would determine the best option based on proposals received, with input from the energy consultant.
Projects that cannot be funded with Public Buildings Bond Funds as a Local Match
· Public awareness ($8,000 grant, $2,000 match). Public awareness would include installation of signage at the Fire Station during implementation of the project. In addition, the proposal calls for the Town to work with the Solar Roofs Committee to include the building on future green building and solar tours, as well as highlight it in the Town’s solar energy website.
· Energy audit of Fire Station Number 1, Inter-Faith Council Shelter and Post Office/Courthouse ($8,000 grant, $2,000 match). An initial energy audit would establish the specific energy efficiency improvements that the Town would pursue as part of this project. The energy audit would identify where and how much energy is being used at the three buildings to identify the best approach for maximizing energy savings. The audit would establish priorities for developing a program, as well as set a baseline for measuring the success of improvements made at the facilities by documenting energy use before and after projects are installed.
· Energy bank ($5,600 grant, $1,400 match). Funds would pay for an energy expert to develop a plan to establish an “energy bank” for the Town, a revolving fund that captures savings resulting from energy efficiency improvements at town facilities. The consultant’s scope of work would include determining how to create an energy bank that incorporates the Town’s current policy of installing energy efficiency improvements in new facilities and major renovation projects.
DISCUSSION
The Town’s 25 percent match for the grant award totals $22,800. The grant proposal also includes in-kind contributions from the Town, mostly in the form of staff time. The $500,000 energy efficiency bonds that passed in November 2003 are a potential source of funding for the Town’s 25 percent match for the energy efficiency improvements and solar installations, which would be eligible for bond expenditures. The total match for those projects is $17,400.
The attached resolution states the Town would use bond funds for the local match of $17,400 once the energy efficiency bonds are sold, supplemented by $5,400 in local match from Council Contingency funds for the projects that are ineligible for using bond funds as a match.
RECOMMENDATION
That the Council adopt the attached resolution authorizing the acceptance of the grant, and enact the attached Ordinance 8.1amending the Public Buildings Bond Fund to reflect the $91,200 award and the transfer of $5,400 from the General Fund for the non-capital portion of the local match. The attached Ordinance 8.2 amending the General Fund transfers $5,400 from Contingency, for the non-capital portion of the local match to be transferred to Public Buildings Bond Funds.
ATTACHMENT
A RESOLUTION AUTHORIZING THE ACCEPTANCE OF A SUSTAINABLE COMMUNITIES PROJECT GRANT (2004-03-22/R-13)
WHEREAS, the State Energy Office and the N.C. Department of Administration have announced the Town has been awarded $91,200 in grant funds for conducting energy audits, developing a plan to establish an “energy bank,” and installing solar energy systems and energy efficiency improvements at Fire Station Number 1; and
WHEREAS, on May 12, 2003, at the request of the Council Committee on Sustainability, Environment and Energy, the Town Council authorized the Town to submit the application and pledged to provide the required 25 percent local match; and
WHEREAS, voters in November 2003 approved the issuance of $500,000 in energy efficiency bonds for use in projects similar in nature to those in the grant proposal;
NOW, THEREFORE, BE IT RESOLVED by the Council of the Town of Chapel Hill that the Council authorizes the Manager to accept the Sustainable Communities Project grant, to make all necessary assurances and to implement the program contained therein.
This the 22nd day of March, 2004.
AN ORDINANCE TO AMEND THE CAPITAL PROJECTS ORDINANCE FOR PUBLIC BUILDINGS (2004-03-22/O-8.1)
BE IT ORDAINED by the Council of the Town of Chapel Hill that, pursuant to Section 13.2 of Chapter 159 of the General Statutes of North Carolina, that the capital projects ordinance for various capital projects funded from a variety of sources is hereby amended as follows:
SECTION I
The capital projects as authorized by the Town Council include building improvements funded from bonds for a energy efficiency building improvements.
SECTION II
The Manager of the Town of Chapel Hill is hereby directed to proceed with implementation of these projects within terms of funds appropriated here.
SECTION III
Revenues anticipated to be available to the Town to complete the project are as follows:
Current Budget Revised Budget
Bond Proceeds 500,000 500,000
Sustainable Community Development Project Grant 0 91,200
Transfer from General Fund 0 5,400
Total 500,000 596,600
SECTION IV
Current Budget Revised Budget
Energy Efficiency Projects 500,000 596,600
Total 500,000 596,000
SECTION V
The Manager is directed to report annually on the financial status of the project in an informational section to be included in the Annual Budget, and shall keep the Council informed of any unusual occurrences.
SECTION VI
Copies of this projects ordinance shall be entered into the Minutes of the Council and copies shall be filed within 5 days of adoption with the Manager, Finance Director, and Town Clerk.
This the 22nd day of March, 2004.
AN ORDINANCE TO AMEND “THE ORDINANCE CONCERNING APPROPRIATIONS AND THE RAISING OF REVENUE FOR THE FISCAL YEAR BEGINNING JULY 1, 2003 (2004-03-22/O-8.2)
BE IT ORDAINED by the Council of the Town of Chapel Hill that the Budget Ordinance entitled “An Ordinance Concerning Appropriations and the Raising of Revenue for the Fiscal Year Beginning July 1, 2003” as duly adopted on June 9, 2003 and the same is hereby amended as follows:
This the 22nd day of March, 2004.