AGENDA #5b
MEMORANDUM
TO: Mayor and Town Council
FROM: Council Committee on Sustainability, Energy and Environment
Council Member Dorothy Verkerk, Chair
Council Member Bill Strom
Council Member Jim Ward
DATE: June 14, 2004
This memorandum updates the Town Council on the status of the Town’s Sustainable Community Project Grant award.
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 Project grant program, which provides 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 grant. At that time, the Council established a capital projects ordinance reflecting the grant total. The Council also authorized matching funds equal to 25 percent of the total budget, with a portion to come from the 2003 energy efficiency bonds and the remainder from the Council’s contingency account. The deadline for completing the projects is February 2006.
The State agreed to fund the following projects:
· Development of an energy bank, a revolving fund “banking” energy savings for future energy efficiency improvements at Town facilities ($7,000, including Town match)
· Energy audits at Fire Station No. 1, the IFC Shelter and the Old Post Office ($10,000, including Town match)
· Energy efficiency improvements at the fire station ($40,000, including Town match)
· Installation of solar hot water and photovoltaic panels at the fire station ($47,000 total, including Town match)
· A public awareness campaign ($10,000, including Town match)
PROJECT STATUS
On Wednesday, May 5, the Council Committee on Sustainability, Energy and Environment supported a proposal to reallocate portions of the grant funding so that the Town could increase funds for developing an energy bank from $7,000 to $20,000. The change would shift money to the energy bank by reducing the amount budgeted for public outreach and energy audits. Since 2003 Energy Bond funds cannot be used for planning costs, this change would provide needed funds to plan for the implementation of the energy bank concept.
The Committee asked Town staff to submit to the State Energy Office a request to reallocate the grant funds as approved by the Council Committee on Sustainability, Energy and Environment (please see Attachment 1). If approved, this reallocation would not require an amendment to the capital projects ordinance authorized by the Council.
The Committee and Town staff are studying two options for the energy bank: pursuing the original proposal to hire a consultant, or buying energy accounting software, which would give the Town the capacity to establish the energy bank in-house. The Committee has requested more information on software programs. The Town has received a $19,000 quote for one program, Energy CAP, including two days of staff training.
The State has not yet responded to the Committee’s request for reallocation of the funds.
NEXT STEPS
The Council Committee next meets on June 21, 2004, to continue discussion on implementation of the grant and 2003 energy efficiency bond projects.
ATTACHMENT