AGENDA #4j
MEMORANDUM
TO: Mayor and Town Council
FROM: W. Calvin Horton, Town Manager
DATE: June 27, 2005
The attached Resolution would accept a $35,000 grant that the State Energy Office proposes to award the Town during Fiscal Year 2005-06 for the installation of photovoltaic panels on the roof of Fire Station Number 1.
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 is providing 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. The Council also authorized the matching funds equal to 25 percent of the total budget. The deadline for completing the projects is June 30, 2005.
The following projects were funded:
· Development of an energy bank, a revolving fund “banking” energy savings for future energy efficiency improvements at Town facilities
· An energy audit at Fire Station No. 1
· Energy efficiency improvements at the fire station
· Installation of solar hot water and photovoltaic panels at the fire station
· A public awareness campaign
DISCUSSION
The Town is on schedule to complete all of the grant projects, except the photovoltaic system installation, by the June 30th deadline.
Completed and Ongoing Projects
BVM Engineering of Atlanta has conducted energy audits of Fire Station Number 1 and Town Hall, and developed a draft Energy Bank concept with input from the Council Committee on Sustainability, Energy and Environment and staff.
Energy efficiency improvements were completed at the fire station using the grant funding include new energy-efficient windows and doors and upgrades to the HVAC units. The Town has contracted with Solar Consultants to complete the solar water heating system. The grant has funded the development of 3-D computer graphics depicting the improvements at the Fire Station to be used as part of public outreach efforts including a new web site.
Status of Photovoltaic System
The Town has received bids for a 2.4 to 2.5 kilowatt photovoltaic system ranging in cost from $27,610 to $33,000. The contractors have informed the Town that the photovoltaic panels are currently in short supply and will take several months to be delivered. As a result, completion of the installation is not possible until late summer or early fall 2005.
“Gap Funding”
The State Energy Office requires that all of the Sustainable Community Grant funds be spent by June 30, 2005. On June 8, the Town submitted a request for $35,000 in “gap funding” the State Energy Office announced may be available to complete the photovoltaic system installation after the grant deadline (please see Attachment 1). The gap funding would be used in lieu of the Sustainable Community Grant funding. No local match would be required.
The State Energy Office has informed the Town that the State Energy Policy Review Committee has recommended approval of the Town’s request (see Attachment 2). The funding would be available in Fiscal Year 2005-06, pending final approval by the Energy Policy Council. The Energy Policy Council is scheduled to consider the request on June 30. This approach would enable the Town to complete all the projects originally contemplated.
RECOMMENDATION
That the Council adopt the attached Resolution authorizing the acceptance of a pending $35,000 State Energy Office grant and inclusion of the funding in the 2005-06 Budget.
ATTACHMENTS
1. State Energy Office Letter to Town of Chapel Hill (p. 4)
2. June 8, 2005 Memo from Town Manager to State Energy Office (p. 5).
A RESOLUTION AUTHORIZING THE ACCEPTANCE OF A STATE ENERGY OFFICE GRANT (2005-6-27/R-8)
WHEREAS, the State Department of Administration and the State Energy Office awarded the Town of Chapel Hill a $91,200 Sustainable Community Project grant for energy efficiency and renewable energy projects;
WHEREAS, in March 2004 the Town Council authorized the Town to accept the grant and the Manager to implement the grant;
WHEREAS, the State Energy Office has announced its intent to award the Town $35,000 to complete the photovoltaic system installation after the Sustainable Community Project grant deadline of June 30, 2005;
NOW, THEREFORE, BE IT RESOLVED by the Council of the Town of Chapel Hill that the Council authorizes the Town Manager to accept the State Energy Office grant, pending final approval by the State Energy Policy Council, and to make all necessary assurances.
This the 27th day of June, 2005.
MEMORANDUM
TO: Cynthia Moseley, Program Manager, State Energy Office
FROM: W. Calvin Horton, Town Manager
SUBJECT: Gap Funding Request for Photovoltaic Installation
DATE: June 8, 2005
The Town of Chapel Hill requests $35,000 in gap funding to fund the installation of a photovoltaic system at the Town’s Fire Station Number 1. The funding will be used in lieu of the $32,000 in Sustainable Community Project grant funds awarded to the Town by the State Energy Office.
The funding is needed because of the photovoltaic panels will not be available for shipment until after June 30, 2005, the deadline for spending the Sustainable Community grant funds.
The Town has received two bids for the work. We anticipate contracting with Solar Village Institute. The estimated installation costs, including equipment and labor, are as follows:
16 150-watt modules $14,400
4 ground/roof racks for 4 modules each $1,685
Line tied inverter $2,975
Distribution panels, breakers, conduit, fittings, boxes, wire, grounding, insurance $2,500
Labor $6,050
Total Estimate $27,610
If the $35,000 request is granted, we will work with the contractor to add additional photovoltaic modules to the contract scope for the remainder of the funds.
We anticipate this project will be completed by October 31, 2005.
Please contact Philip Hervey, Senior Planner, at (919) 968-2728 if you have further questions.