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					    CITY COUNCIL/REDEVELOPMENT AGENCY

               TUESDAY, JULY 6, 2010
                AGENDA ITEM No. 10


               COSNENT CALENDAR
                  RESOLUTION




Accepting the California Energy Efficiency and Conservation
Block Grant (EECBG) in the amount of $180,214 and
authorize the Interim City Manager to expend the grant
funds on LED– (Kamal Fallaha, City Engineer, Engineering
Division)
STAFF REPORT, CC RESOLUTION – EECBG APPLICATION, 07-06-2010



                           CITY OF EAST PALO ALTO
                           Public Works Department/
                           Engineering Division




                                      Administrative Report

       DATE:          July 6, 2010

       TO:            Honorable Mayor and Members of the East Palo Alto City Council

       VIA:           M L Gordon, Interim City Manager

       FROM: Kamal Fallaha, City Engineer

       SUBJECT:       California Energy Commission’s Energy Efficiency Conservation Block Grant
                      (EECBG) for Small Cities and County Program and Authorizing the Interim City
                      Manager to budget and expend the Grant per the California EECBG agreement with
                      the City of East Palo Alto


       RECOMMENDATION
       It is recommended that the City Council:
       1. Adopt a resolution accepting a grant in the amount of $180,214 from the California Energy
            Commission’s Energy Efficiency Conservation Block Grant (EECBG) for Small Cities and
            County Program; and,
       2. Authorize the Interim City Manager to budget and expend the Grant in accordance with the
            California EECBG agreement with the City of East Palo Alto.

       BACKGROUND
       On December 15, 2009, the City Council of the City of East Palo Alto authorized the City Manager
       to accept on behalf of the city, a grant award up to the amount of this application for $180,214.00,
       and, that the City Manager acting for the City of East Palo Alto, is also hereby authorized and
       empowered to execute, in the name of the City of East Palo Alto, all necessary contracts and
       agreements, and amendments hereto, to implement and carry out the purposes specified in the
       application. (Attachment 1, CC Resolution No. 3000)

       In February 2009, President Obama signed into law the American Reinvestment and Recovery Act
       (ARRA), which, for the first time, appropriated funds to the U.S. Department of Energy (DOE) for
       the Energy Efficiency Conservation Block Grant (EECBG) Program. The purpose of the ARRA is to
       preserve and create jobs, promote economic recovery and to assist those most impacted by the
       recession. Under the EECBG program, the California Energy Commission (CEC) was charged with
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STAFF REPORT, CC RESOLUTION – EECBG APPLICATION, 07-06-2010

       the responsibility of administering the State’s share of EECBG funding within California. The CEC
       received $35.5 million in funding to eligible small cities and counties under the funding solicitation.
       The EECBG is a formulaic block grant program designed to provide eligible small cities and
       counties within the State of California grant funding to install eligible cost effective energy
       efficiency retrofits within their jurisdictions. Under the EECBG, East Palo Alto has been
       allocated $180,214. There are no matching funds required with this grant.

       At the request of the CEC, all eligible participants were required to submit an “Intent to Apply”
       letter to secure their funding. The City has submitted such letter, prepared and submitted an
       application to retrofit approximately 350 street lights with upgraded energy efficient varieties. Most
       of the existing street lights throughout the City are currently fitted with low-sodium vapor lamps.
       The EECBG fund will allow the City to change the fixture and ballast to more efficient LED or
       fluorescent varieties.

       The City will participate in the direct equipment purchase program, and will be retrofitting existing
       traffic signal lights to LED varieties as well.

       There will be no feasibility study required since this is a direct equipment purchase. The EECBG
       program requires projects demonstrate both energy efficiency and cost efficiency.

       As this is federal funding under the ARRA, monthly reporting will be required. All approved
       projects must be completed by February 13, 2012. This is an excellent opportunity to secure funding
       to provide for even more energy efficient systems in the City. In addition to the City’s potential to
       realizing energy savings with the proposed projects, it also continues to demonstrate the City’s
       commitment to moving in the direction of a “sustainable community”.

       ENVIRONMENTAL IMPACT
       In compliance with the CEQA, City Staff finds that the energy efficiency projects are categorically
       exempted from CEQA requirements under Section 15303, because it is categorized as New
       Construction or Conversion of Small Structures.

       FISCAL IMPACT
       The EECBG program does not require local match. Therefore, the project will not have an
       impact on the General Fund or, require any City funds.

       ATTACHMENTS
        1. City Council Resolution 3000




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STAFF REPORT, CC RESOLUTION – EECBG APPLICATION, 07-06-2010




                      Resolution No. _______________
      A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF EAST PALO
      ALTO, CALIFORNIA, ACCEPTING THE GRANT AMOUNT OF $180,210 FROM
      THE CALIFORNIA ENERGY COMMISSION AND AUTHORIZE THE INTERIM
      CITY MANAGER TO BUDGET AND EXPEND THE GRANT IN ACCORDANCE
      WITH THE ENERGY EFFICIENCY CONSERVATION BLOCK GRANT
      AGREEMENT


      WHEREAS, the City Council of the City of East Palo Alto recognizes that it is in the
      interest of the regional, state, and national economy to stimulate the economy; create and
      retain jobs; reduce fossil fuel emissions; and reduce total energy usage and improve energy
      efficiency within our jurisdiction; and

      WHEREAS, Energy Efficiency Conservation Block Grant (EECBG) funds are available
      through the California Energy Commission’s EECBG Program for grants to eligible local
      governments for cost-effective energy efficiency projects; and

      WHEREAS, the City of East Palo Alto was awarded a grant from the EECBG funding in
      the amount of $180,214, under the California Energy Commission’s EECBG Program
      small cities; and

       WHEREAS, the EECBG fund will allow the City to replace approximately 350
       streetlight fixture and ballast with more efficient LED or fluorescent varieties; and

      WHEREAS, in compliance with the CEQA, the City of East Palo Alto finds that the
      approval of this energy efficiency project is categorically exempt under CEQA, per under
      Section 15303, because it is categorized as new construction or conversion of small
      structures.

      NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of East
      Palo Alto adopt this resolution accepting a grant in the amount of $180,214 from the
      California Energy Commission’s Energy Efficiency Conservation Block Grant (EECBG)
      for Small Cities and authorize the Interim City Manager to budget and expend the grant in
      accordance with the California EECBG agreement with the City of East Palo Alto, and
      execute all necessary contracts, purchases and agreements, hereto, to implement and carry
      out the purposes specified in the application.




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STAFF REPORT, CC RESOLUTION – EECBG APPLICATION, 07-06-2010



      PASSED AND ADOPTED as a resolution of the City Council of the City of East
      Palo Alto at a regular meeting thereof on the 6th day of July, 2010 by the following
      vote:

    AYES:
    NOES:
    ABSTAIN:
    ABSENT:


                                                    David E. Woods, Mayor


    ATTEST:


    ________________________________
    Minette Warren, Deputy City Clerk


    APPROVED AS TO FORM:


    _________________________________
      Vincent C. Ewing, City Attorney




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