HomeMy WebLinkAboutDesert ARC - Energy Svgs ImprvmentsPALM DESERT REDEVELOPMENT AGENCY
STAFF REPORT
REQUEST: AUTHORIZE NEGOTIATION OF EASEMENTS AND APPLICABLE
AGREEMENTS TO PROVIDE FINANCIAL ASSISTANCE IN AN
AMOUNT NOT -TO -EXCEED $60,000 TO DESERT ARC
(FOUNDATION FOR THE RETARDED) FOR THE INSTALLATION
OF ENERGY SAVING IMPROVEMENTS AT ITS FACILITY
LOCATED AT 73-255 COUNTRY CLUB DRIVE, PALM DESERT
SUBMITTED BY: JUSTIN MCCARTHY, ACM/REDEVELOPMENT
DATE: MAY 8, 2008
Recommendation:
By Minute Motion, that the Agency Board:
1) Authorize staff to negotiate easements and applicable agreements to
provide financial assistance in an amount not -to -exceed $60,000 to Desert
Arc (formerly Foundation for the Retarded) for the installation of energy
saving improvements at its facility located at 73-255 Country Club Drive,
Palm Desert.
Executive Summary:
Approval of the staff recommendation will allow Agency staff to prepare an agreement
with Desert Arc to provide assistance in funding improvements in the area of energy
savings. This will assist the Redevelopment Agency in meeting certain Agency and City
policy objectives while providing financial relief to the foundation to assist it in providing
a valuable service to the developmentally disabled in the City and greater Coachella
Valley.
Discussion:
On December 20, 2007, staff secured authorization to explore assistance to Desert Arc
in the areas of affordable housing, water conservation, and energy savings. Desert Arc
is also requesting $150,000 in general assistance through the City's CDGB program
and $48,000 from the Regional Access Program for its assisted living program.
Based on an energy audit performed by SCE and inspection of the air conditioning units
at Desert Arc, staff recommends initial assistance of $60,000 in the area of energy
savings improvements. The funds would be used to fund Desert Arc for lighting
upgrades recommended in an SCE energy audit, and for the replacement of four
original air conditioning units that are highly inefficient and in need of repair. These
GArda\Marta Hunt\WPDATA\MCCARTHY\staffrpts\050808 Desert Arc.docx
Staff Report
Authorize negotiation of easements and applicable agreements to provide financial
assistance to Desert Arc (Foundation for the Retarded) facility
Page 2 of 2
May 8, 2008
improvements would save Desert Arc an estimated $12,000 per year; plus rebates
estimated at $8,500.
Staff has secured an estimate of $640,000 for a solar photovoltaic system for Desert
Arc. The system would generate approximately 25% (157,000 kilowatts) of the
Foundation's electrical usage of 722,541 kilowatts per year, and save an estimated
$38,000 per year in electrical bills. With an estimated rebate of $220,000, the net cost of
the system would be $420,000. This is too expensive to pay directly; however, staff will
explore financing or participation mechanisms with Desert Arc for the Agency's
consideration that would maximize the benefit to Desert Arc, while leveraging the
Agency's funds.
Staff is also working with the Foundation to identify affordable housing opportunities. At
this time, staff is requesting authorization to prepare an easement agreement to
facilitate the funding of the SCE recommendations and air conditioning replacement in
an amount not -to -exceed $60,000. Such an agreement with a detailed budget would be
submitted to the Agency Board for its consideration.
Submitted by:
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McCarthy, ACM JRevelopment
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Paul S. Gibs,yn! D5peforof Finance
Carlos L. OrteaA/Executive Director
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Original on file with City Clerk's Office