AGENDA #4s

 

MEMORANDUM

 

TO:                  Mayor and Town Council

 

FROM:            W. Calvin Horton, Town Manager

 

SUBJECT:       Reimbursement Resolution Regarding Proposed Use of Public Buildings Bond Funds for the Sustainable Community Development Project Grant Local Match

 

DATE:             March 22, 2004

 

 

The attached resolution would declare the Town’s intent to reimburse all capital expenses incurred for the local match of the Sustainable Community Development Project Grant.

 

BACKGROUND

 

The Town has been awarded a Sustainable Community Development Project Grant from the State Department of Administration and the State Energy Office.  The Town is required to provide a 25% local matching share for this grant.  The Grant will be used, in part, to fund three capital energy efficiency projects:

 

• Energy efficiency improvement throughout Fire Station No. 1, including energy efficient windows, light sensors in bathrooms and measures to minimize the loss of heating and air conditioning when the bay doors are open.

 

• Installation of solar hot water panels on Fire Station #1’s south facing roof.

 

• Installation of photovoltaic panels at Fire Station #1.

 

The total combined local match for the Grant for these three capital projects is $17,400.  We propose to use Public Buildings Bond Funds to provide the required matching amount for the local match. 

 

U. S. Treasury regulations and guidelines which involve debt financing transactions require that a governmental entity declare its intent to use debt financing for a given project before any expenses are incurred.  In accord with this requirement, the Town must adopt a resolution of intent to use bond funds for the matching grant funds for the three capital projects at Fire Station #1 in order to be reimbursed from the proceeds of the bond proceeds for any costs incurred before the bond issuance is finalized.

 

The attached resolution would satisfy the federal reimbursement requirements by declaring the Town’s intent to use Public Buildings Bond funds for an amount not to exceed $17,400 as a portion of the local match for the capital portion of the Sustainable Community Development Project Grant.  The portion of the match ($5,400) for non-capital items would be paid for with General Fund revenues.

 

RECOMMENDATION

 

That the Council adopt the attached resolution declaring its intent to reimburse costs of the local match for energy efficient capital improvements to Fire Station #1 from Public Buildings Bond funds.

 

 

 

 

A RESOLUTION DECLARING OFFICIAL INTENT TO REIMBURSE EXPENSES OF CAPITAL RENOVATION PROJECT WITH PUBLIC BUILDINGS BOND FUNDS (2004-03-22/R-13.1)

 

WHEREAS, the Town has determined that Fire Station #1 needs major energy efficient renovations and repair; and

 

WHEREAS, the Town of Chapel Hill desires to make energy efficient renovations to Fire Station #1 through use of bond proceeds for the local match for capital repairs covered in part by a grant; and

 

WHEREAS, in November 2003, Chapel Hill voters approved $500,000 in General Obligation bonds for energy efficient building improvements;

 

NOW, THEREFORE, BE IT RESOLVED by the Council of the Town of Chapel Hill that the Town Manager is authorized to use Town of Chapel Hill 2003 Public Buildings bond funds for the local match for the Sustainable Community Development Project Grant for energy efficient capital improvements to Fire Station #1 in an amount not to exceed $17,400.

 

This the 22nd day of March, 2004.