REPORT TO THE CITY COUNCIL May 16, 2019 FROM: WILMA QUAN, City Manager Office of the Mayor & City Manager BY: LAURA MERRILL, Deputy City Manager Office of the Mayor & City Manager COURTNEY ESPINOZA, Program Implementation Manager Office of the Mayor & City Manager SUBJECT ..Title Actions pertaining to the 2017 Transformative Climate Communities (TCC) Grant and Transform Fresno Plan projects: 1. Approve a Sub-Recipient Agreement with Fresno Economic Opportunities Commission (EOC) for Project 2 EOC Partnership for Energy Savings and Green House Gas Reductions in Southwest Fresno totaling $3,208,377.70 in TCC funding and Project 20 EOC Partnership for Energy Savings and Green House Gas Reductions in Southwest Fresno: EFMP Plus-Up Vehicle Replacement and Incentives totaling $530,000 as a leverage only project; and 2. Approve a Sub-Recipient Agreement with the City of Fresno Department of Public Works for Project 9 Mariposa Plaza totaling $3,859,000; and 3. ***RESOLUTION - 40th amendment to the Annual Appropriation Resolution (AAR) No. 2018-157 appropriating $137,800 from the TCC Grant (Requires 5 affirmative votes) (Subject to Mayor's veto). ..Body RECOMMENDATION Staff recommends that Council approve a Sub-Recipient Agreement with Fresno Economic Opportunities Commission for Project 2 regarding EOC Partnership for Energy Savings and Green House Gas Reductions in Southwest Fresno and Project 20 regarding EOC Partnership for Energy Savings and Green House Gas Reductions in Southwest Fresno: EFMP Plus-Up Vehicle Replacement and Incentives; approve a Sub-Recipient Agreement with City of Fresno Public Works Department for Project 9 regarding Mariposa Plaza; authorize the City Manager to execute all related documents to the administration, modification, monitoring and closeout of the Sub-Recipient Agreements for Projects 2, 9, and 20; and adopt the 40th amendment to the Annual Appropriation Resolution (AAR) No. 2018-157 appropriating $137,800. EXECUTIVE SUMMARY On February 28, 2019, the City Council unanimously voted to approve a Master Grant Agreement (MGA) with the Strategic Growth Council (SGC) for the TCC grant award with the understanding that the Sub-Recipient Agreements between the City and Partners who will be receiving funds to implement components of the Transform Fresno Plan would be brought forward for subsequent Council consideration as they meet the required SGC readiness thresholds and receive a notice to proceed from SGC. The following projects have met the necessary thresholds and are ready to begin implementation. * Project 2 EOC Partnership for Energy Savings and Green House Gas Reductions in Southwest Fresno * Project 20 EOC Partnership for Energy Savings and Green House Gas Reductions in Southwest Fresno: EFMP Plus-Up Vehicle Replacement and Incentives * Project 9 Mariposa Plaza BACKGROUND The Transform Fresno Plan was created by a participatory steering committee comprised of community stakeholders from the Chinatown, Downtown and Southwest Fresno neighborhoods. On February 28, 2019, the City Council unanimously approved the MGA which binds the City and SGC with the understanding that Sub-Recipient Agreements between the City and Partners who will be receiving funds to implement components of the Transform Fresno Plan would be brought forward for subsequent Council consideration as they meet the required SGC readiness thresholds and receive a notice to proceed from SGC. The projects referenced below have met those thresholds and are ready to begin implementation: Project 2 EOC Partnership for Energy Savings and Green House Gas Reductions in Southwest Fresno The project will install energy efficiency and solar water heating measures on 170 single-family homes in Southwest Fresno. The project will also assess, design, and install 510,000 watts of solar photovoltaic systems on 135 single-family homes in the TCC Project Area. Fresno EOC will provide on the job training and Sun Power certification of crews from the target area (approximately 6 trainees total). Fresno EOC and Project 3 GRID Alternatives will coordinate their outreach and installation plans. Fresno EOC will provide technical support to homeowners during the post-installation warranty period. Project 2 has not incurred any changes in budget or scope as originally shown in the MGA. Project 20 EOC Partnership for Energy Savings and Green House Gas Reductions in Southwest Fresno: EFMP Plus-Up Vehicle Replacement and Incentives Fresno EOC will identify approximately 135 households that may qualify for the EFMP Plus-Up program through the TCC-funded CCI Project #2. Valley CAN will assess the qualifications of the households to participate in the EFMP Plus-Up program and will provide approximately 50 vehicle replacements, 20 home charging stations, 10 home service panel upgrades, and 40 PG&E Clean Fuel Rebate Program Incentives. Project 20 is a leverage only project. Project 9 Mariposa Plaza The Mariposa Plaza Activation project refreshes a significant downtown plaza and enhances its connection to the future High Speed Rail station. Renovations will include tree planting, landscaping, installation of permeable paving, and a rainwater capture pavilion. It will maintain its historic use as a place for public speaking and community events. The project adds to these functions by improving the infrastructure for those events and rearranging the relationship between the historic stage and the open audience area. Project 9 has not incurred any changes in budget or scope as originally shown in the MGA. ENVIRONMENTAL FINDINGS Project 2 is not subject to the requirements of CEQA. Public Resources Code Section 21080.35(a) specifically states that the installation of solar energy systems on the roofs of existing buildings, as proposed by Project 2, is not subject to the divisions that sets forth the requirements of CEQA. Project 9 was analyzed under Environmental Assessment No. EA-17-008. The project was determined to be Categorically Exempt by the Director of the Development and Resource Management Department, pursuant to Article 19 of the State CEQA Guidelines under Section 15302/Class 2 and Section 15332/Class 32. A notice of exemption was filed with the County Clerk on May 30, 2017 and was posted for 30 days with no comments or appeals received within the 30 day comment period. Project 20 is statutorily exempt from CEQA as the issuance of building permits is a ministerial action, statutorily exempt from CEQA pursuant to Article 18, Statutory Exemptions, Section 15268 of the State CEQA Guidelines [Public Resources Code 21080(b)(1)]. LOCAL PREFERENCE Local preference was not considered based upon conditions of state funding. FISCAL IMPACT There is no impact to the General Fund. Funding for Transform Fresno Plan projects lead by Partners will be a direct pass-through of TCC grant funds and will be distributed on a reimbursement basis. Attachments: 1. Sub-recipient Agreement with Fresno Economic Opportunities Commission for Projects 2 and 20 2. Sub-recipient Agreement with City of Fresno Department of Public Works for Project 9 3. RESOLUTION - 40th amendment to the AAR No. 2018-157 appropriating $137,800 4. Sub-Recipient Agreement Status Summary