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Alameda County School with the most upgrades is awarded $5,000. Staff was able to leverage federal funds received under the American Recovery and Reinvestment act by putting $25,000 towards the City's water conservation program, also included in this package. The Association of Bay Area Governments (ABAG) approved $1.9 million in funding yesterday, which offsets the reduced assessment cost of$99 with a full rebate. Mr. Smith reviewed the success of earlier programs, including the PG&E Local Government Partnership and the California Youth Energy Summer programs. He discussed the newer components of the Energy Upgrade Pleasanton package, which include free home assessments after rebate. For those looking to pay for solar improvements over time, both lease and financing options are available. The lease program is still eligible for all rebates excepting two and the homeowner receives that money up front to assist with payments. On qualifying credit, deed holders whose income does not exceed $148,000 are eligible for a 3% interest rate over 15 years as well as a $1,250 grant. Several banks and solar companies offer their own competitive financing solutions. Councilmember Cook-Kallio asked and Mr. Smith confirmed that as part of the Climate Action Plan, the City would be tracking all data from the project including actual water and energy savings. Councilmember McGovern asked if staff anticipated this as a one-time or annual request. Mr. Smith said it would be a one-time request. He did not think it likely there would be the same market circumstances to warrant the request again. Councilmember Cook-Kallio recommended using real life examples and values as part of the marketing campaign. Mr. Smith said that is staffs intent, though they have already received a tremendous response from the community. Vice-Mayor Thorne suggested that the return on investment might be enough incentive without including the City's rebate. Mr. Smith said that staff gave it considerable thought, and believes the ABAG funds will be so short-lived that this is an important contribution. That, coupled with the benefits to the local community, seems like a sound investment. Vice-Mayor Thorne stressed for the public that the requested contribution would come from a reserve fund and will not affect any capital improvement projects that are in need of funding. Councilmember McGovern suggested that the City use this opportunity to look at more upgrades in its own buildings. Mr. Smith clarified that the City is not eligible for the rebates outlined; however, an RFQ just closed for performance contracting solar and other upgrades at multiple City sites. He stressed that staff has not given up on municipal improvements but noted that where that would cost several million dollars, this is an opportunity to leverage state and federal dollars and still accomplish most of these programs. MOTION: It was M/S by Cook-Kallio/McGovern to approve $250,000 from the Capital Improvement Program to establish the Energy Upgrade Pleasanton program. Motion carried by the following vote: Ayes: Councilmembers Cook-Kallio, McGovern, Thorne, Mayor Hosterman Noes: None Absent: Councilmember Sullivan Vice-Mayor Thorne supported the motion because, despite his numerous questions, he has always advocated for incentive based programs rather than requirements. City Council Minutes Page 3 of 6 October 18,2011