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01-18-2011 - San Gabriel Valley Council of Governments Memorand - Item 9 (2).pdfCity of West Covina TO: Andrew G. Pasmant, City Manager and City Council Memorandum AGENDA ITEM NO. 9 FROM: Shannon A. Yauchzee, Director/City Engineer DATE January 18, 2011 Public Works Department SUBJECT: SAN GAI3RIEL VALLEY COUNCIL OF GOVERNMENTS MEMORANDUM OF UNDERSTANDING TO PARTICIPATE IN ENERGY GRANT FUNDING RECOMMENDATION: is recommended that the City Council approve the following Memorandum of Understanding: MEMORANDUM OF UNDERSTANDING - THE CALIFORNIA LONG-TERM ENERGY EFFICIENCY STRATEGIC PLAN (CEESP) MEMORANDUM OF UNDERSTANDING BETWEEN THE SAN GABRIEL VALLEY COUNCIL OF GOVERNMENTS AND THE CITY OF WEST COVINA DISCUSSION: The California Energy Efficiency Strategic Plan (CEESP) was adopted by the California Public Utilities Commission in 2008. The overall goal of the strategic plan is to embed and institutionalize energy efficiency in policies, programs and processes within local governments. Through Southern California Edison, the commission has since authorized $32 million in grant funding for eligible local government activities that support the CEESP. Recently, SCE released a Request for Proposal to local jurisdictions currently participating in Local Government Partnerships. Through the San Gabriel Valley Council of Governments (COG) and the San Gabriel Valley Energy Wise Partnership (EWP), the City of West Covina and 27 other cities submitted a joint proposal and have now been awarded grant funding to complete the following two CEESP-related activities. Energy Efficiency Portion of Climate Action Plans/Energy Action Plans—Participants will develop a comprehensive roadmap and guidance within each local city as they inventory and decrease energy usage at their municipal facilities and community-wide. Consultants provided and funded by SGVEWP will work with city staff to create and organize these local energy- efficiency chapters. Online Utility Manager - The County of Los Angeles has purchased an unlimited license for an online Enterprise Energy Management Information System (EEMIS), whereby for a fee, cities can opt-in to track and publicly monitor energy usage in their facilities. Program participants will receive funding from SGVEWP to help develop and implement the EEMIS program within their own jurisdictions. AB32 encourages cities to develop a Climate Action Plan and attempt to reduce levels of greenhouse gases. The plan will likely be a requirement for future energy rebates and grants. The City would be required to do its own Action Plan at higher cost or risk losing future funding. The attached Memorandum of Understanding (Attachment No. 1) has been requested by COG to authorize continuing City participation in this program. As previously requested by SCE, staff has created a working draft Energy Action Plan for the City (Attachment No. 2). Following approval by SCE, COG, and EWP, the working draft will become the starting point for the development and implementation of the two CEESP program activities listed above. ALTERNATIVES: The City Council may direct staff to discontinue participation in this program. However, the staff funding and future grant funding opportunities could be lost. ZAAGENDA - 201110EESP Informational Report_MOU.doc Andrew G. Pasmant, City Manager and City Council Page 2 — January 18, 2011 FISCAL IMPACT: This program will reimburse the City staff for labor costs up to a maximum cap of $38,000. The program would also make the City more eligible for future grants and rebates. ,so Prepared by: Bruce R. Hammill Reviewed/Approved by: Shannon A. Yauchzee Construction Coordinator irector/City Engineer Attachment No. 1 Memorandum of Understanding Attachment No. 2 Energy Action Plan ATTACHMENT NO. 1 Memorandum of Understanding THE CALIFORNIA LONG-TERM ENERGY EFFICIENCY STRATEGIC PLAN (CEESP) MEMORANDUM OF UNDERSTANDING BETWEEN THE SAN GABRIEL VALLEY COUNCIL OF GOVERNMENTS AND THE CITY OF WEST COVINA This Memorandum of Understanding (MOU) is entered into by and between the San Gabriel Valley Council of Governments (SGVCOG) and the City of West Covina (CITY). WHEREAS, the SGVCOG was established to have a unified voice to maximize resources and advocate for regional and member interests to improve the quality of life in the San Gabriel Valley by the member cities and other local governmental agencies; and WHEREAS, Southern California Edison (SCE) has awarded funding to the SGVCOG to implement activities that achieve the goals set forth in the California Long-Term Energy Efficiency Strategic Plan (CEESP); and WHEREAS, the CITY submitted a letter of participation to the SGVCOG requesting to be included in the SGVCOG's proposed work plan for this solicitation; and WHEREAS, the SCE agreement (Agreement) with the SGVCOG attached as Exhibit A provides for funding for two activities: 1) the development of energy-efficiency chapters of Climate Action Plans (EE CAP Chapter) and 2) the implementation of an online municipal facility utility manager (Utility Manager); and WHEREAS, the SGVCOG and the CITY desire to set forth the terms of their collaboration with respect to the CEESP in this MOU. NOW, THEREFORE, the Parties agree to the following: I. General Conditions A. The Parties to this MOU are the San Gabriel Valley Council of Governments and the City of West Covina. B. The Parties agree that all work contemplated under this MOU must be consistent with the terms of the Agreement between Southern California Edison and the San Gabriel Valley Council of Governments attached hereto as Exhibit A. C. The term of this MOU shall commence upon receipt by the SGVCOG of a Notice to Proceed from SCE pursuant to the Agreement and continue through October 31, 2012. The term may be extended by mutual agreement of both Parties. 11. Responsibilities of each of the Parties A. SGVCOG 1. Coordinate and manage consultants, including contract management 2. Review and process all billing and reports to SCE 3. Perform all responsibilities required under the SCE agreement except those responsibilities assumed by the CITY as specified in this MOU 4. Provide reimbursement to the CITY for eligible work completed by CITY staff upon approval of invoices and receipt of payments from SCE. B. CITY I. Provide a point of contact to SGVCOG for both tasks (EE CAP Chapter and Utility Manager) as follows: • EE CAP Chapter Name: Shannon Yauchzee Title: Public Works Director/City Engineer Phone: (626) 939-8425 Email: Shannon.yauchzee@westcovina.org • Utility Manager Name: Shannon Yauchzee Title: Public Works Director/City Engineer Phone: (626) 939-8425 Email: Shannon.yauchzee@westcovina.org Provide requested data to SGVCOG and consultants regarding municipal energy usage and facilities (including number, type and usage of facilities) Participate, at a minimum, in the development of a "Program Management Plan" (PMP) for both the EE CAP Chapter and the Utility Manager tasks. This is intended to assess the feasibility of completing both tasks' workplans. Additionally, the CITY may participate in and be reimbursed for the following subtasks: EE CAP Chapters: • Participating in the Project Steering Committee • Participating in the consultant selection and review process • Providing data to the consultant regarding municipal and community-wide energy usage as well as planned or existing projects and programs relevant to the City's EE CAP Chapter • Coordinating with the consultant and participating in the municipal and community-wide EE CAP Chapter goal setting workshops • Reviewing and commenting on the draft EE CAP Chapter • Participating in the planning and execution of the San Gabriel Valley Climate Change Information Sharing Session Utility Manager: • Coordinating with staff from the County of Los Angeles on the installation of Utility Manager software, including networking of facilities as needed to connect to the Utility Manager • Participating in trainings by the County of Los Angeles on the use of EEMIS to analyze energy consumption data, identify energy savings opportunities, benchmark facility usage and operations, and sustain project saving • Developing an EEMIS maintenance plan Submit invoices to the SGVCOG for any billable hours by the fifth (5th) calendar day of the month for work completed the prior month, unless otherwise agreed to in writing by the SGVCOG. All invoices must be in the format provided by the SGVCOG and include the following information: subtask, title/position of staff, hourly rate by staff position, number of hours worked, date of hours worked, and description of work completed. All invoices are subject to review and verification by the SGVCOG and CEESP consultants. Reimbursements will be capped by a not to exceed maximum per deliverable as indicated in Table 1 below. Due to the nature of the funding allocations, a late invoice may not be eligible for reimbursement. Subtask Utility Manager Task Task A.1: Work with County staff to identify opportunities and constraints related to installation of EEMIS Task A.2: Work with County staff to develop EEMIS planning report Task A.3: Coordinate procurement of EEMIS with County staff Task A 4: Work with County staff to install EEMIS and report back to SGVCOG Task A 5: Participate in EEMIS trainings and develop EEMIS maintenance plan with County staff Task A.6: Report back on actions taken resulting from the benclunarking analysis Subtotal EE CAP Chanter T Task B.1: Participate on Project Steering Committee Task B 3: Plan for the development of the energy efficiency chapters Task B 5: Review and provide input on technical memo on baseline and long-term forecasts Task B 7: Review and provide comment on draft energy efficiency chapters Task B 9: Review final energy efficiency chapters and report back on implementation of recommendations Subtotal Maximum Reimbursement 720 1,110 720 12,300 4,880 550 20,280 4,760 1,200 3,741 8,729 480 18,910 Table 1. Maximum Reimbursement by Subtask 2 5. Maintain official timesheets and other records that support hours billed to the CEESP program for a ten year period following the completion of the project. 6. Warrants and represents as follows: a. Understands and agrees that for the purposes of the foregoing, any requirements imposed upon SGVCOG by SCE are hereby passed-through and adopted as obligations of the CITY to the maximum extent allowable by law; b. Agrees to strictly comply with the scope of any and all authorizations, limitations, exclusions, and/or exceptions for use of CPUC funds; c. Shall not cause SGVCOG to be in violation of the Agreement, whether by act or omission; and d. Shall comply with all applicable Federal, State, and local laws, rules, regulations, ordinances, and directives, now existing and as such may change from time-to- time. Any such laws, rules, regulations, ordinances, and directives required thereby to be included in this MOU are incorporated herein by reference. 7. Notwithstanding any provision to the contrary, whether expressly or by implication, the CITY agrees to indemnify, defend, and hold harmless SGVCOG, its elected and appointed officers, employees, and agents form and against any and all liability resulting from the CITY'S negligent and wrongful act(s) and/or omission(s) arising from and/or relating to the Agreement and as such would be imposed in the absence of Government Code section 895.2. Without limiting the scope above, such liability includes but is not limited to the following: any funding disallowance; audits; demands; claims; actions; liabilities; damages; fines; fees, costs, and expenses, including attorney, auditor, and/or expert witness fees. 8. The CITY understands and agrees that it is solely responsible for any and all incurred amounts found by SCE to be ineligible under the Agreement. Immediately upon the request of SGVCOG or SCE, the CITY shall return any funds that have been disbursed to the extent that their use has been disallowed. For the San Gabriel Valley Council of Governments Signed: Date: For the City of West Covina Signed: Date: 3 ATTACHMENT NO. 2 City of West Covina Energy Action Plan Draft Approved on Table of Contents Executive Summary 2 SECTION 1 — INTRODUCTION 3 1.1 History of Energy Planning in West Covina 3 1.2 Other Agency Goals 3 SECTION 2— CITY OF WEST COVINA ENERGY USE 3 2.1 City of West Covina Baseline Municipal Energy Use 3 2.2 Highest Users (2008 measured annual use; in kWh) 4 2.3 Current Energy Programs/Policies 4 SECTION 3— CITY OF WEST COVINA TARGET REDUCTION GOALS 5 SECTION 4— CITY OF WEST COVINA ACTION STEPS 5 4.1 Municipal Facility Energy Efficiency Projects 5 4.2 Municipal Potential Energy Efficiency Projects 5 4.3 Funding of Projects 5 4.4 Policies 6 5 Tracking 6 Executive Summary With the unprecedented energy challenges resulting from increased import dependency, concerns on supply of fossil fuels worldwide, and an undoubted public interest in energy conservation and sustainability, it is clear that action needs to be taken. In order to address these concerns, the City of West Covina is committed to reducing local energy use through the enactment of policies, strategies, and actions that are both cost-effective and environmentally sound. The purpose of this Energy Action Plan is to guide the City of West Covina toward attainable conservation goals that may also significantly reduce the impact of greenhouse gas emissions within the community. Those goals include: Educating the public about energy saving techniques and programs. Promoting and creating energy conservation opportunities and programs. Installing environmentally benign, renewable and reliable energy facilities. Participating in alliances with local businesses and with other agencies. Pursuing and performing local and higher funding opportunities. Coordinating other City policies, programs, and ordinances to become compatible with Sustainable Community goals. SECTION 1 — INTRODUCTION In 2008, the annual average energy use at local municipal facilities was reported by the federal government to be in excess of 121,500 btufsq ft—making them the eighth highest energy consuming classification, out of the report's twelve listed types of non- residential facilities. Of all available choices, Federal and State energy policy agencies now recommend the retrofit and replacement of obsolete equipment and energy-use systems as the best method of reducing energy consumption at existing buildings while maximizing available funds and resources. Those civic improvement projects gain equally significant benefit from accompanying reductions in Greenhouse Gas (GHG) emissions and from the lowering of local community tax burdens used to fund each local jurisdiction's long term operational costs. The City of West Covina is committed to perfecting an Energy Action Plan that will address the future environmental and fiscal impacts of energy usage in municipal facilities, thereby promoting good stewardship through energy conservation and efficiency practices. 1.1 History of Energy Planning in West Covina Beginning in 1993, the city performed multiple energy-efficiency projects through its Capital Improvement Program, using a variety of funding mechanisms provided through both County and State agencies. The realized benefits of that work resulted in energy savings to the local community of more than twelve million kilowatt hours and cost savings in excess of $1,300,000, for retrofit work accomplished through the year 2009. In 2001, the City came into partnership with the California Energy Commission, a State agency that has been providing the City with funding and professional support as it achieves its conservation goals. Since 2006, the City of West Covina has also participated in the San Gabriel Valley Energy Wise Partnership (SGVEWP), with Southern California Edison and the San Gabriel Valley Council of Governments. This program, which is funded by the California Public Utilities Commission, is intended to assist cities in identifying and undertaking municipal energy-efficiency retrofit projects. 1.2 Other Agency Goals California has enacted new legislation ("Assembly Bill 32") with a goal for the state to reduce its own greenhouse gas emissions to 1990 levels by the year 2020. The greenhouse gases targeted by this legislation are water vapor, carbon dioxide, methane, nitrous oxide, and ozone; substances that, at naturally occurring levels, are beneficial to the environment. Pollutant levels of Carbon Dioxide gas being released through commercial, industrial and residential burned fuels are now recognized as the greatest component of the danger addressed by this legislation. The goal of reducing that threat will be the primary environmental focus of this Energy Action Plan. Aggressive support and funding from both State and County jurisdictions will be sought and encouraged to achieve the most effective and successful growth of this plan—an effort dedicated to encourage greater community participation off-site, through the promotion of documented program successes. SECTION 2 — CITY OF WEST COVINA ENERGY USE 2.1 Ci ty of West Covina Baseline Municipal Energy Use 2004 Municipal Operations Energy Usage Municipal Facility Energy Usage (kWh) Annual Cost ($) City Hall 3,294,912 333,255 Senior Center 314,520 44,484 Parks 1,387,034 229,513 3 Street Lights 936,100 74,159 Traffic Lights 590,563 70,020 2.2 Highest Users (2008 measured annual use; in kWh) 1. Civic Center: 2,561,897 2. Cameron Park Community Center: 373,240 3. City Maintenance Yard: 366,300 4. Senior Citizen's Center: 292,350 5. Palmview Park Community Center: 123,300 6. Shadow Oak Park Community Center: 118,520 7. Fire Station No. 2: 100,680 2.3 Current Energy Programs/Policies In order to promote, support, and implement energy efficiency and conservation programs within the City, the following policy goals have been identified: a. Surpass the energy efficiency standards of the California Building Code for proposed and existing municipal buildings and facilities. b. Provide on-line (Internet accessible) guidance and assistance to Homeowners and Builders to make compliance with new Title 24 energy requirements as effective and efficient as possible. c. Coordinate City Efficiency goals and programs with the efficiency projects and incentive programs of higher jurisdictional agencies. Expand the City's Residential Solar Power permit-waiver program to include other alternative energy applications, Consider fee adjustments or rebates to local businesses and residents in support of those efforts. d. Modify the City's lighting standards to encourage the application of "Dark Skies" goals (discourage excessive and spill-over lighting). e. Develop an ordinance to encourage energy efficiency upgrades and improvements in existing buildings. Empower the real estate community and other stakeholders to participate in current financial incentives and energy-retrofit opportunities prior to sale. f. Promote energy and water conservation design features in all major renovation and development projects. 9. Encourage pool covers and solar pool heating systems in place of conventional methods for heating residential swimming pools. h. Encourage the efficient use of water and reduce urban runoff through the use of natural drainage, drought tolerant landscaping, and efficient irrigation systems in major renovation and new development projects. Recommend the incorporation of these practices within the approval processes of other local and regional departments and jurisdictions. Promote the coordination of landscapers and residential Solar Power contractors to minimize heat build up at existing and new homes, through more effective shading design. Encourage the installation of PV solar for new and existing buildings. Continue the planned expansion of the City's vehicle fleet with less polluting hybrid vehicles that are more energy efficient. k. Continue to replace the City's existing diesel fuel burning Rapid Transit bus fleet with less polluting natural-gas fueled vehicles. I. Explore and implement other energy conservation programs and measures that may prove beneficial to West Covina's economy and environment. 4 SECTION 3— CITY OF WEST COVINA TARGET REDUCTION GOALS 1. Local business community participation rate of 5% by not later than the year 2014, 2. Local homeowner participation rate of 15% by not later than the year 2013. 3. Energy-use reductions at City buildings of at least 30% by the year 2011 (1994 baseline). SECTION 4— CITY OF WEST COVINA ACTION STEPS The City recognizes that further development and planning is required before a perfected action plan item can be implemented. To serve this purpose, an interim, Energy Committee may be created by the City Manager who will further develop plans and recommendations for implementation. The first order of business of the Energy Committee shall be to develop and submit to Council a new "Green Building Ordinance" for adoption. This is irrelevant now, as the State has adopted one. The ordinance shall include or address relevant action items recommended by relevant County, State and Federal regulatory agencies, as determined by the Energy Committee, The City is also participating in the SGVCOG's effort, funded through the SCE California Long-Term Energy Efficiency Strategic Plan solicitation, to develop robust energy action plans that will include both municipal facility and community-wide assessment and planning. Due to the City of West Covina's Gold Level partnership status in the SGVEWP, the completion of its EAP will be prioritized and may be underway as soon as November/December 2010. 4.1 Municipal Facility Energy Efficiency Projects • Senior Center Annex Cool Roof (Project Completed 2006) • City Hall & PD HVAC Retrofit (Project Completed 2007) • Senior Center HVAC Retrofit (2 units) (Project Completed 2008) • City Hall Window Solar Film (Project Completed 2010) • Cameron Park Community Center Solar Film (Project Completed 2010) • City Wide HVAC Units Retrofit (13 buildings) (Project Completed 2010) • City Wide Traffic Signals (Estimated Completion Date - December 2010) • City Wide Paths & Parking Lots Lighting Retrofits (Potential Project) 4.2 Municipal Potential Energy Efficiency Projects • Senior Center Lighting — Audit Completed 3/2010 • City Yard — Audit Completed 3/2010 • Police Station Kitchen — Audit Completed 9/2010 • Fire Station #2 Kitchen Audit Completed 9/2010 • Sunset Field Kitchen — Audit to be Completed 10/2010 • Fire Station #1 Kitchen—Audit Completed 9/2010 • Fire Station #3 Kitchen Audit to be completed by 10/2010 • Cameron Park Community Center Kitchen — Audit Completed 9/2010 • Cortez Park Kitchen — Audit Completed 9/2010 • Del Norte Park Kitchen Audit to be Completed 10/2010 • Equestrian Center Kitchen — Audit Completed 9/2010 • Friendship Park Kitchen — Audit Completed 9/2010 • Maverick Ball Field Kitchen — Audit to be Completed 10/2010 • Orangewood Daycare Kitchen Audit Completed 9/2010 • Orangewood Park Kitchen — Audit Completed 9/2010 • Palmview Park Community Center Kitchen — Audit Completed 9/2010 • Senior Citizen's Center Kitchen — Audit Completed 9/2010 • Senior Center Annex Kitchen — Audit Completed 9/2010 • Shadow Oak Park Kitchen — Audit Completed 9/2010 • Walmerado Park Audit Completed 9/2010 4.3 Funding of Projects To fund the aforementioned projects and future projects the City will explore the following options: Explore creation of a new City-owned revolving loan program that could provide small loans to local homeowners and small businesses to assist them with their proposed energy efficiency improvements. Join existing programs that would distribute and install efficiency equipment and materials, and that promise to provide community homeowners and businesses with efficiency-evaluation products and services at low cost. Create opportunities to purchase and distribute Energy Efficiency products in bulk, providing them to the community at wholesale cost. Investigate third party financing possibilities for renewable energy installations and existing building retrofits that may be made within the community. Consider the opportunities, such as peak pricing opportunities, grants, and subsidy programs, to reduce the overall cost of electricity. Recommend a feasibility study to evaluate revenue bond opportunities for energy-related projects. Pursue all available subsidies, rebates and grants that will allow the City to accomplish energy efficiency and renewable energy projects. 4.4 Policies The City of West Covina hereby establishes within this Energy Action Plan the following principles for future public policy formation: Enhance the general quality of life through energy strategies that will benefit the community. Promote ecologically friendly propositions that create a healthy environment. Promote good stewardship through energy conservation and efficiency practices. Support opportunities for local economic vitality. Emphasize sustainable/renewable power sources. Favor locally owned and operated power providers. 4.5 Tracking All projects are tracked under the City's Capital Improvement Projects (CIP) budget program. The City of West Covina's Public Works Director/City Engineer, working as the assigned program manager, will monitor the ongoing progress of the EAP program and the individual projects. The program manager will be directly involved in initial project implementation and ongoing data collection and reporting. Program activity project managers will be required to submit to the program manager quarterly written reports of activities and achievements. Both short-term outcomes and progress leading toward ultimate EAP objectives will be uniformly gathered and tracked, per the reporting metrics set by each project's funding agency. Interim reports describing major actions taken to date for individual projects and on total program progress shall also be prepared each month, before being forwarded to appropriate departments for public posting. Accurate records shall be kept that account for all program funds, costs, and expenditures. The City shall prepare and submit to the funding agency all required Expenditure and Funding reports, along with sustentative documents that may be requested. The City of West Covina's Public Works Department will perform both pre and post- inspections of all new and/or retrofit work to confirm that all new fixtures and equipment are installed and operational, per project objectives.