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6 DATE: September 16, 2024
TO: Mayor and Members of the City Council
VIA: Stefan Chatwin, City Manager
Marlene Subhashini, Assistant City Manager
FROM: Derek Schweigart, Parks and Recreation Director
DEPARTMENT: Parks and Recreation
SUBJECT: GRANT AGREEMENT WITH THE PENINSULA CLEAN
ENERGY AUTHORITY IN THE AMOUNT OF $551,232 FOR
THE RECREATION CENTER REBUILD PROJECT (CIP 301-
678)
RECOMMENDATION
It is recommended that the City Council adopt the attached resolution authorizing the City Manager to execute a grant agreement with the Peninsula Clean Energy Authority (PCE) and apply the grant funding in the amount of $551,232 toward the Recreation Center Rebuild Project (CIP 301-678).
EXECUTIVE SUMMARY
The City of Foster City was awarded a grant in the amount of $551,232 by PCE to be applied toward costs for the Recreation Center Rebuild Project (CIP 301-678). The grant funding would be applied directly toward costs associated with LEED Silver design and construction and sustainability features in the project, in particular the design and construction of a photovoltaic system, which is a bid alternate on the construction bid documents. At the regular City Council meeting on September 3, 2024, the City Council awarded a construction contract to BHM Construction, LLC for the construction of the new Recreation Center which included inclusion of the photovoltaic system.
To accept the funds, it is necessary for the City Manager to execute the Grant Agreement (Attachment 2).
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6 BACKGROUND/ANALYSIS
In December 2023, the PCE Board of Directors authorized one-time allocation of $11.5 million in surplus funds for its member agencies to implement local energy projects, with the goal to reach carbon neutrality by switching from fossil fuels to clean electricity.
Each agency was allocated a specific funding level for its use in a manner consistent with PCE’s mission. An amount of $551,232 was pre-allocated for Foster City. The allocations are one-time grants, and no repayment is required, however, the member agency is required to adhere to a spending verification process as determined by PCE. Grant funding may be used for one or more projects, as approved by PCE, and must be spent within twenty-four (24) months of allocation.
In July 2024, staff applied for grant funding from PCE for the Recreation Center Rebuild Project (CIP 301-678). The City is on track to minimally achieve LEED Silver certification for the new all-electric Recreation Center building. With the goal of ultimately reaching net-zero carbon, the Project has been designed to be photovoltaic ready and to have the potential to expand electric vehicle charging beyond those installed on day one. At the regular City Council meeting on September 3, 2024, the City Council approved the construction contract for the new Recreation Center and approved bid alternate E1. Photovoltaic Panel System (PV) which will allow the Project to potentially meet the requirements for LEED Gold, and further meet net-zero carbon performance.
This goal will be accomplished with the support of the requested grant funding from PCE. The general contractor’s bid price for construction of the photovoltaic array is $1,218,000.
On July 31, staff was notified by PCE that the City will be awarded $551,232 in grant funding. It is necessary for the City Council to authorize the City Manager to execute the Grant Agreement for the funds to be issued and accepted. Funds will be issued after the Grant Agreement is signed and returned to PCE. The full amount would be disbursed in two tranches, the first up-front and the second on conclusion of the project after submission of project documentation.
CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA)
This action authorizing the City Manager to execute a grant agreement with the Peninsula Clean Energy Authority (PCE) and the receipt of grant funding is not a project within the meaning of Section 15378 of CEQA Guidelines because it has no potential for resulting in either a direct or a reasonably foreseeable indirect physical change in the environment.
The Recreation Center Rebuild Project itself was reviewed in accordance with the requirements of CEQA and the City of Foster City Environmental Review Guidelines. The City of Foster City prepared an Initial Study and Mitigated Negative Declaration (SCH# 20231009) with standard conditions and Mitigation Monitoring Reporting Program and CEQA Findings. The City also prepared an Addendum to the adopted Mitigated Negative 7 2
6 Declaration for the temporary modular buildings portion of the Project.
FISCAL IMPACT
If approved by the City Council, grant funding in the amount of $551,232 will be accepted to Account No. 301-0000-369-1608 and will offset costs of the Recreation Center Rebuild Project (CIP 301-678) related to energy efficiency, and other green building measures.
The current budget estimate for the Recreation Center Rebuild Project (CIP 301-678) is $61,035,000 which includes the recently approved construction contract and contingency, as well as all of the bid alternates approved as part of the scope of the Project.
CITY COUNCIL VISION, MISSION, AND VALUE/PRIORITY AREA
Innovation and Sustainability
Facilities and Infrastructure
ATTACHMENTS:
Attachment 1 – Resolution
Attachment 2 – Grant Agreement
Attachment 3 – PCE Grant Application