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#05 Energy Efficiency Block Grant Memo Community Development Department Memorandum June 22, 2009 TO: Janesville City Council FROM: Al Hulick, Development Specialist SUBJECT: Action on a proposed resolution authorizing the City Manager to apply for the Energy Efficiency and Conservation Block Grant. (File Resolution No. 2009-620) RECOMMENDATION The City Administration recommends the City Council authorize the submission of the Energy Efficiency and Conservation Block Grant application. CITY MANAGER RECOMMENDATION The City Manager supports the recommended plan for the Energy Block Grant. SUGGESTED MOTION I move to approve Resolution #2009-620, authorizing the City Administration to submit an application for the City’s direct allocation of $618,500 for the Energy Efficiency and Conservation Block Grant Program. REQUEST As part of the American Recovery and Reinvestment Act of 2009, the Department of Energy has allocated $618,500 as part of the Energy Efficiency and Conservation Block Grant Program. The City of Janesville has been allocated $618,500. Although this is a direct allocation from the Federal Government to the City of Janesville, Federal Law requires that the City apply for these funds and present a plan for using the funding to meet the goals of the grant. Therefore, the City Administration requests that the City Council authorize the submission of the Energy Efficiency and Conservation Block Grant application. BACKGROUND The American Recovery and Reinvestment Act of 2009, appropriates funding for the Department of Energy (DOE) to issue/award formula-based grants to units of local government under the Energy Efficiency and Conservation Block Grant (EECBG) Program. Projects under this program will be funded, in whole or in part, with funds appropriated by the American Recovery and Reinvestment Act of 2009. The Recovery Act’s purpose is to stimulate the economy and to create and retain jobs. In additional to these goals, the purpose of the EECBG Program is to assist eligible entities and implementing strategies and projects to: ? Reduce fossil fuel emissions in a manner that is environmentally sustainable and, to the maximum extent practicable, maximizes benefits for local and regional communities; ? Reduce the total energy use of the eligible entities; and ? Improve energy efficiency in the building sector, the transportation sector, and other appropriate sectors. These stated purposes describe the overall intent of the EECBG Program. Entities may develop various initiatives and projects that address one or more of the purposes and each activity an entity undertakes is not required to meet all of the stated purposes. DOE encourages entities to develop many different new and innovative approaches within the framework of the legislation and the guidance to serve these purposes. The grant period of performance for these grants will be 36 months. In keeping with the agenda of the ARRA, entities are required to obligate all funds within eighteen (18) months from the effective date of the award. Application’s are due June 25, 2009. ANALYSIS As part of the application process, the City must identify programs and initiatives in which the $618,500 grant funds will be spent. The City Administration has identified the following programs/initiatives and approximate funds: ? Traffic and Street Light Retrofitting – The City intends to retrofit the remaining incandescent traffic signals to LED as well as retrofit a number $150,000 of High Pressure Sodium street lights with Induction lighting. ? Municipal Facility Indoor Lighting Retrofitting – The City intends to retrofit existing lighting from “T12/Magnetic Ballast” fluorescent with “High Efficiency T8/Electronic Ballast” fluorescents. Lighting replacements will occur at the Municipal Building, City Services Center, and Fire Stations. $150,000 ? Ice Arena Energy Upgrades – The City intends to utilize funds to either upgrade the boiler and compressor units at the existing ice arena facility with more energy efficient units or leverage additional funds to replace the $100,000 entire facility. ? Residential Energy Audits and Efficiency Upgrade Grants – The City intends to offer residents and landlords funds to perform an energy evaluation of their home or rental property, make efficiency improvements (i.e. programmable thermostats, light bulbs, shower heads, etc.) and provide small matching grants to assist in making energy efficiency $75,000 upgrades to their homes, identified by the energy evaluation. ? Green Action Plan – The City intends to utilize grant funds to develop a “Green Action Plan”, potentially including “green” building codes, for the City which will provide a framework to creating a sustainable community. $75,000 ? Administration – The grant application indicates that not more then 10% of the overall award can be used for administrative expenses. Each of the above programs will require a certain amount of administrative time. $61,850 RESOLUTION NO. 2009-620 A RESOLUTION authorizing the City of Janesville’s submittal of Energy Efficiency and Conservation Block Grant Program application. WHERES , in accordance with the American Recovery and Reinvestment Act, the Department of Energy has directly allocated $618,500 of Energy Efficiency and Conservation Block Grant funds to the City of Janesville; and WHEREAS , the Common Council of the City of Janesville recognizes the importance of decreasing the City’s reliance on fossil fuels and increasing the use of renewable energy and renewable fuels; and WHEREAS , by adopting this Resolution, the Common Council declare their intent for the City Administration to prepare and submit a Energy Efficiency and Conservation Block Grant Program application; and WHEREAS , the City of Janesville will maintain records documenting all expenditures made during the grant implementation process and abide by the necessary reporting responsibilities as determined by the Department of Energy; and WHEREAS , the City of Janesville intends to comply with all requirements of law to in accord with the Department of Energy; and WHEREAS , the City of Janesville intends to comply with all requirements of and will submit all documents and participation requirements, including but not limited to the necessary reporting requirements, to the Department of Energy. NOW, THEREFORE, IT IS HEREBY RESOLVED by the Common Council of the City of Janesville that: 1. All above introduction and recitals are incorporated herein by reference as if fully set forth verbatim; and 2. The City Administration is authorized on behalf of the City of Janesville to prepare and submit applications for and request funds and assistance available from the Department of Energy and related State and other programs and sources; 3. The City of Janesville shall take any and all necessary action to undertake, direct, and complete approved grant activities, and comply with State rules for the program(s); and BE IT FURTHER RESOLVED , that the City Manager and his designee(s), on behalf of the City of Janesville, is/are hereby jointly and severally authorized and empowered to negotiate, draft, review, revise, modify, amend, execute, enter into, file and/or record additional applications, agreements, amendments, documents, reports, and letters of understanding concerning this matter, and to take whatever additional other actions that the City Manager may determine in his sole discretion, from time to time and at any time, necessary and/or desirable in the public interest to effectuate the intent of this Resolution. ADOPTED: Motion by: Second by: APPROVED: Councilmember Aye Nay Pass Absent Brunner McDonald Eric J. Levitt, City Manager Perrotto Rashkin ATTEST: Steeber Truman Voskuil Jean Ann Wulf, City Clerk-Treasurer APPROVED AS TO FORM: City Attorney Proposed by: City Administration Prepared by: Community Development