SR-510-005-03
F:\EPWM\ADM\STFRPRTS\SolarSMMUSD
Council Meeting: September 11, 2001 Santa Monica, CA
TO: Mayor and City Council
FROM: City Staff
SUBJECT: Recommendation to Authorize the City Manager to Implement an
Energy Efficiency Partnership with the Santa Monica/Malibu Unified
School District and Authorize Acceptance of Grant Funding for a
Solar Energy Feasibility Study
Introduction
This report recommends that the City Council authorize implementation of an
Energy Efficiency Partnership for the Santa Monica/Malibu Unified School District
(SMMUSD) in an amount not to exceed $500,000. The report also recommends
acceptance of a $35,000 grant from the U. S. Department of Energy?s Million
Solar Roofs Initiative to prepare a feasibility study of the potential for installation
of solar energy systems in Santa Monica and the availability of financing options
that could be leveraged by the City.
Background
At the June 19, 2001 Council meeting, Council directed staff to rebate 50%, or
$1.4 million of the then estimated $2.8 million in additional Utility User Tax (UUT)
receipts, which were expected to result from extraordinary energy cost increases
to electricity and gas customers. Council also directed that the remaining half of
the additional UUT receipts be used to establish a Community Energy Efficiency
Fund for the implementation of energy projects in the community. The Council
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designated priority funding for the SMMUSD for implementation of energy
efficiency projects at District facilities.
Discussion
ENERGY EFFICIENCY PARTNERSHIP
Since the Council?s direction to staff on June 19 to give priority to SMMUSD for
energy efficiency funding, City and SMMUSD staff have been collaborating on
the development of a comprehensive energy efficiency plan for the District that
will address many of the District?s energy efficiency needs to help achieve the
SMMUSD Board?s adopted 20 percent energy conservation goal. The plan
combines energy efficiency training and education for teachers, students,
custodial and administration staff with specific energy efficiency upgrades to
existing District facilities. In addition to funding provided by anticipated UUT
receipts from the City, elements of the plan will be supported by the Regional
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Energy Efficiency Initiative (REEI) and, potentially, by the California Energy
Commission. It is estimated that the total cost for the proposed programs will be
approximately $500,000, and that the plan will be implemented over a one-year
period.
Proposed SMMUSD Energy Efficiency Programs
And Estimated Costs
1. Upgrades to existing lighting systems and controls $150,000
2. Upgrades to existing HVAC systems and controls 125,000
3. Energy Efficiency Education Programs
(Including energy audits of school sites) 150,000
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The REEI is an energy efficiency demonstration project between the cities of Santa Monica
and Irvine, Southern California Edison and the California Energy Coalition. The REEI uses Public
Good Funds collected from ratepayers to implement programs and projects for the residential and
small commercial sectors of the community.
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4. Photovoltaic or Solar Thermal Demonstration Project 75,000
5. SMMUSD Energy Efficiency Coordinator 75,000*
6. Cool Roofs Program TBD**
TOTAL $575,000
TOTAL CITY CONTRIBUTION $500,000
*This position, which will be fully funded through the Regional Energy
Efficiency Initiative (REEI) of which the City is a member. Recruitment for
the Energy Efficiency Coordinator will be initiated with the assistance of
the REEI. The coordinator will be a one-year position contracted to the
District and will work exclusively on coordinating and implementing the
District?s energy efficiency plan. The REEI is able to fully fund this
contract position for a one-year period, at the end of which the contract
and position will cease.
**It is anticipated that the Cool Roofs Program will be funded through
existing SMMUSD capital budget amounts with co-funding from state and
federal sources.
Staff believes that the proposed Energy Efficiency Partnership with SMMUSD
offers the best package of programs and projects to maximize school site energy
efficiency over the next year. It is proposed that funds be released by the City to
reimburse the district for actual expenditures for approved projects and programs
as they are implemented over the course of the year. Every effort will be made
to accelerate and expedite the appropriate work plan so that energy savings can
be maximized. Staff is currently analyzing policies and procedures regarding the
remainder of the Community Energy Efficiency Fund and will bring
recommendations to Council on October 9, 2001.
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Solar Energy Feasibility Study
The Department of Energy?s Million Solar Roofs Initiative is a program to install
solar photovoltaic or solar thermal systems on one million buildings in the U.S. by
2010. Solar photovoltaics produce electricity from sunlight; solar thermal panels
produce heat for domestic hot water, for space heating, or for heating swimming
pools. Initiative grants are aimed at removing market barriers to solar energy
use and developing local demand for solar energy products and applications
through partnerships.
The City has been awarded a Million Solar Roofs Initiative grant for $35,000 to
hire a consultant to prepare a technical analysis of the solar potential in Santa
Monica and the financing options that are available or can be created to fund
installation of solar energy equipment in Santa Monica. The City has formed a
partnership with Santa Monica College for this project. As part of the College?s
in-kind matching contribution, the College will allow its Environmental and Urban
Studies Center, a single-family building located on Pearl Street and currently
home to the City?s Green Team Program, to serve as a demonstration site for a
rooftop photovoltaic and solar thermal system. The Center will also provide
informational materials to the public on solar energy applications, system design
and installation costs, and financing options as well as serve as a site for public
workshops on solar energy. The City?s contribution consists of developing
informational materials, coordinating workshops for the public, and possible cost
sharing for installation of the solar photovoltaic and solar thermal systems at the
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site depending on the availability of outside grants and contributions, which will
be solicited.
Budget/Financial Impact
Funds for the City/SMMUSD Energy Efficiency Partnership ($500,000) are
available in Account #CO1076302.589000, the source of which will be 50% of
Utility User Tax revenue generated through the extraordinary increase in
electricity and natural gas costs for Santa Monica customers over the next year,
estimated at $1.4 million. However, if the estimate should be adjusted downward
to reflect actual excess tax revenue, the fund for the partnership will be adjusted
accordingly.
Funds from the Million Solar Roofs Initiative grant ($35,000) will be received in
revenue account #20662.406580 and an appropriation of $35,000 will be made
to expenditure account #C20076302.589000.
Recommendation
This report recommends that the City Council:
1.) Authorize the City Manager to negotiate and execute an Agreement for
the implementation of an Energy Efficiency Partnership for the Santa
Monica/Malibu Unified School District in an amount not to exceed
$500,000. The proposed $500,000 expenditure is based on an estimate
of excess revenues related to the UUT. However, if the estimate should
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be adjusted downward to reflect actual excess tax revenue, the fund for
the partnership will be adjusted accordingly.
2.) Authorize a $35,000 grant from the Department of Energy?s Million Solar
Roofs Initiative to prepare a feasibility study of the potential for
installation of solar energy systems in Santa Monica and the availability
of financing options that could be leveraged by the City.
Prepared by: Craig Perkins, Director of Environmental and Public Works
Management Department
Susan Munves, Energy and Green Building Programs Coordinator
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