CC Resolution No. 10-015 Authorize County of Sacramento as the lead collaborative entity to apply for state energy program funds on behalf of the City of CupertinoRESOLU`T'ION NO. 10-015
RESOLUTION BY THE CITY C~bUNCIL OF THE CITY OF CUPERTINO
AUTHORIZING THE COUNTY OF SACRAMENTO AS THE LEAD
COLLABORATIVE ENTITY TO APPLY FOR STATE ENERGY PROGRAM FUNDS
ON BEHALF OF THE Cl':TY OF CUPERTINO
WHEREAS, the City of Cupertino recognizes that it is in the interest of the regional, state,
and national economy to stimulate the economy; cre~ite and retain jobs; reduce fossil fuel emissions;
and reduce total energy usage and improve energy efficiency within our jurisdiction; and
WHEREAS, State Energy Program (SEP) fwids are available through the California Energy
Commission's SEP for grants to eligible local governments for energy efficiency, energy
conservation, renewable energy, and other energy related projects and activities authorized by the
American Recovery and Reinvestment Act of 2009 ("ARRA"); and
WHEREAS, SEP allows for cities, counties, or groups of cities and counties in California to
apply for SEP funds on behalf of eligible local governments; and
WHEREAS, the City of Cupertino is eligible for SEP funding under the California Energy
Commission's SEP; and
WHEREAS, the City of Cupertino is proposing to collaborate with Sacramento County to
implement a program for financing the energy efficiency, energy conservation, renewable energy,
and other energy related projects and activities authorized by ARRA, which program is described in
Exhibit A for the purpose of qualifying for SEP funds from the California Energy Commission; and
WHEREAS, the City of Cupertino has considered the application of the California
Environmental Quality Act (CEQA) to the approval of the program for financing energy
efficiency, energy conservation, renewable energy, and other energy related projects and activities
authorized by ARRA described in Exhibit A;
NOW, THEREFORE, BE IT RESOLVED, that in compliance with the CEQA, the City
Council of the City of Cupertino finds that the approval of the program for financing energy
efficiency, energy conservation, renewable energy, a.nd other energy related projects and activities
authorized by ARRA described in Exhibit A is not a "project" under CEQA, because the program
does not involve any commitment to a specific project which may result in a potentially
significant physical impact on the environment, as contemplated by Title 14, California Code of
Regulations, Section 15378<b)(4)).
BE IT FURTHER RESOLVED that the City Council authorizes Sacramento County to
submit a collaborative application on its behalf to th~~ California Energy Commission for up to $16.5
million in SEP funds for the program for financing energy efficiency, energy conservation,
renewable energy, and other energy related projects and activities authorized by ARRA described in
Exhibit A.
BE IT ALSO FLIRTER RESOLVED, if recommended for funding by the California Energy
Commission, the City of Cupertino authorizes Sacramento County to accept a grant award on its
Resolution No. 10-015
behalf and to enter into all necessary contracts and a€;reements, and amendments thereto, on its
behalf to implement and carry out the program for fixxancing the projects described in Exhibit A.
PASSED AND ADOPTED at a regular muting of the City Council of the City of
Cupertino this 19th day of January 201 O, by the following vote:
Vote Members of the City Council
AYES: Wang, Wong, Chang, Mahoney, Sa~itoro
NOES: None
ABSENT: None
ABSTAIN: None
ATTEST:
City Clerk i`~~ ~/, ~-
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APPROVED:
Resolution No. 10-015
Exhibit A
California Energy Commissi~~n State Energy Program
California FIRST Colle~borative Proposal
Summary of Proposal ScoF~e 8c Budget Framework
~escriotion of Program Prouosal
Under the lead applicant, Sacramento County, the 14 counties eligible to participate in the
pilot stage of the CaliforniaFIRST Program arecollaborating on a proposal to the California
Energy Commission State Energy Program for a grant of up to $16.5 million. The grant
funds will be used to offset initial fees associated with bond issuance, start-up costs for the
14 counties and all incorporated citie<_:, an interest rate buy-down, local
marketing/education/training/outreach, local coordination, and grant administration to
supporYthe launch of the California FIRST municipal financing program.
CaliforniaFIRST Program County Particioanl:s and Proposal Collaborators
/ Alameda / Sacramento / San Mateo / Ventura
/ Fresno / San Benito / Santa Clara / Yolo
/ Kern / San Diego / Sainta Cruz
/ Monterey / San Luis Obispo / Solano
Budget Basics
1. California FIRST financing costs and fees (~~6M)
Guided by California Communities and thc~ CaliforniaFIRST Program Administrator
Renewable Funding, this program element will:
• buy-down the interest rate on the initial round(s) of projects financed by the
CaliforniaFIRST Program,
• cover fixed costs associated with initial bond counsel, bond disclosure, fiscal agent
and bond rating,
• cover legal and validation costs, and
• cover the deployment of technology (web portal) to support local programs.
2. Grant/Contract Administration 8c Steering Committee Liaison: (~$2M)
On behalf of the applicant agency, grant/contractor administration duties include gathering
relevant reporting information from all partner jurisdictions and California FIRST, financial
oversight and invoicing, contract administration, tracking, monitoring, and oversight of
deliverables. In addition, the grant administrator will serve as the partner liaison between
all participating steering committees to maintain coordination and consistency on the local
marketing efforts between parties as well as provide marketing and contract technical
assistance, training, and advice to participating agencies. The Grant Administrator will also
coordinate local efforts with those programs funded under the California Comprehensive
Residential Building Retrofit Program.
3. Regional Program Coordination 8c Marlcelting: (~*8.5M)
In line with the overall project goals, funding ha<_> been budgeted on a regional basis to each
of the six primary program regions in the following amounts, based on total number of
Counties:
• Capitol Region (Sacramento/Yolo): $1,800,000
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Resolution No. 10-015
• Central Valley Region (Fresno/Kern): $1,150,000
• Bay Area Region: (Alameda/San Mateo/5'~anta Clara/Solano): $2,300,000
• North Central Coast Region: (Monterey/Santa Cruz/San Benito): $1,725,000
• South Central Coast Region: (Ventura/San Luis Obispo): $1,150,000
• Southern California Region: (San Diego): $575,000
This final program element serves to provide each region with the resources necessary to
help facilitate the rapid adoption of energy efficiency and renewable energy generation
system installations throughout the target area by connecting property owners to any and
all available on-the-ground or proposed resources, and services, providing a streamlined
framework for easy navigation, reduced out-of-pocket expenses, and overall increased cost
effectiveness for both participants and the program overall. The focus of the program will be
to create region-wide (or county-wide, whey<~ appropriate) cooperative project design,
implementation, marketing, and coordination to maximize economies of scale, take
advantage of overlapping markets, and ultimately allow each dollar to go further to benefit
all parties.
Financing Costs and Fees
A. Financing Costs
As Program Administrator of the California3 Communities California FIRST Program,
Renewable Funding will coordinate and provide program administration, financing, and legal
services to support a robust statewide municipal financing program. Specific financing
costs are concentrated at the start of the program and result in increased fees to a program
participant, and therefore a higher effective interest rate. In order to lower the interest
rate, the SEP funds will be used to cover bond disclosure counsel, bond rating fees, and a
bond fiscal agent. In addition, a direct interest rate buy-down will be employed to achieve a
bond rate that is equivalent to an A-rated bond, which is likely to be the bond rating later in
the program.
B. Set-up Fees
A funding request equivalent to the city and county set-up fees will be included in the
proposal. The costs for initial legal work and vzrlidation proceedings will be covered by this
request. Additionally, the costs of establishing county web portals, importing local
assessor's data, and maintaining the website will be part of this funding request.
Suggested Maior MarKetina Program Coordination 8e Marlcetina Program Elements
A. Agency Coordination /Steering Committee Participation
In recognition of the additional coordination time required to get new programs off the
ground, individual counties may elect to includes a modest amount of staff time for agency
representatives to participate in the program steering committee and other activities to
drive marketing program design, educational/rarketing material development, form and
protocol development, etc. By investing this time at the onset, we are able to develop a
self-sustaining program for the long term. County agencies (that is, auditor/tax
collector/controller) will receive a small percent=age, incorporated into each loan, to cover
regular ongoing program administration costs associated with maintaining the tax roll and
collecting annual assessments in years beyond the grant term. Some jurisdictions may
instead wish to contribute this time as project leveraged funds/resources to increase overall
program cost effectiveness based on their individual needs and resources. Regional
partnership may also elect to use a portion of the resources from this program element
toward informal or formalized staff/personnel training within their jurisdictions.
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Resolution No. 10-015
B. Education /Outreach/ Marketing
Successful program adoption requires thoughtful design, convenient procedures, and a
robust program education component to encourage and energize program participation.
Achieving this goal, the project team will create clear, consistent, and thematic program
branding imagery, educational and recruitment tools such as program brochures. The
program will be supported by the CaliforniaFIR:ST web portal and links to new and existing
partner and complementary websites, frequentl~~ asked questions, applications, and/or other
program materials. In addition, the project will engage a wide-stretching network of
partners to promote, recruit, and dissemin~~te program information utilizing existing
mechanisms of door-to-door outreach, community event tabling, workshops and
presentations, or other appropriate energy efficiency and complementary program
participation activities. Major elements might include:
/ Outreach Promotional Materials: Brochures, Door-hangers, Postcard Mailers, Bill Inserts,
etc.
/ Program Marketing Advertisements: Print Ads, Radio/TV Ads, PSA Production
/ Promotional Outreach Events, Trade Shows or Community Workshops
/ Homeowner/Business/Contractor/Staff Training Seminars
/ Sustainability Site Signage
/ Green Building and/or LEED Certification Technical Assistance
C. Community Coordinator /Partner Liaison /Supplies
The community coordinator is envisioned to serve as the single point regional program
coordinator to unify, inform, collaborate, and engage all program parties in relation to local
coordination and marketing efforts; respond to public inquiries; facilitate the education,
outreach, marketing, recruitment; and promote program adoption by the target community.
In addition the coordinator is responsible for coordinating with the grant administrator,
tracking/reporting necessary progress and metrics, meeting/exceeding grant milestones and
targets, incorporating required complementary program components, and working with
California FIRST to assure QA/QC measures are applied to all participating properties.
Specific tasks will be driven by the overall project goals as well as the specific needs of each
region and may include:
/ Coordination with Grant Administrator/Steering Committee Liaison
/ Marketing Coordination with CaliforniaFIRST Municipal Finance District
/ Facilitation of local Regional Steering Comn'iittee Members and Partners
/ Assist with Implementation Strategy, Docun'ients, Procedures 8c Protocols Development
/ Guide Promotion, Marketing, Education, Recruitment 8i Program Information
Dissemination
/ Link Program Participants to Regional Energ~~ Efficiency 8c Complementary Programs
/ Connect to Concurrent Complementary Workforce Development Training/Graduates
/ Administer Regional Program Budget, Competitive Bidding, Other Program
Transparency Reqs
/ TracK and/or compile, Monitor 8i Evaluate Program Progress, Energy Savings, GHG
Reductions Achieved, Partner Leveraged Funcis and Ancillary Environmental Benefits
Sample County Budget
A sample budget based on the above frameworN: is provided below. Please note that these
amounts are subject to change based on the actual needs of each participating jurisdiction
as well as feedback obtained regarding funder and partner thresholds for competitiveness.
Com onent
Ove~a// Gross Benefit
Per County Net Benefit
Per County
1.CaliforniaFIRST Costs 8. Fees 39% $ 428,571.43 -
Resolution No. 10-015
2. Grant Administration 8. Technical Assistance 10% $ 107,142.86 -
3A.Steerin Adviso Committee 10% $ 115,000.00 $ 115,000.00
3B. Education, Outreach, Incentives, Marketin 23% $ 258,750.00 $ 258,750.00
3C. Communit Coordination 18% $ 201,250.00 $ 201,250.00
Total !00% $ ~,~~0,7l4.29 $ 575,000.00
Grant ~evelooment Team:
• County of Sacramento-Lead Agency (Applicant), will oversee grant writing, provide
final edits and required signatures, and submit finalized proposal on behalf of entire
collaborative team based on the approved proposed program scope and budget
framework
• Ecology Action-Partner Grant Writer (Lead on Marketing), will develop narrative based
on proposed program scope and budget framework, especially as it pertains to local
coordination and marketing project adiTiinistration, marketing/contract technical
assistance, regional coordination, and marketing, to meet all grant requirements and
maximize proposal competiveness.
• Renewable Funding-Partner Grant Writer (Lead on Finance), will develop narrative
based on proposed program scope and budget framework, especially for CaliforniaFIRST
Program finance-related program elements, to meet all grant requirements and
maximize proposal competiveness.
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