The Fire Department received an additional $40,000 grant from the Oregon Department of Energy (the Agency) to improve lighting efficiency at Fire Station 1. The Agency added this funding to the existing 2024 grant agreement, which provided $115,000 for the now-completed HVAC replacement. The amendment increases the total award to $155,000, expands the project scope, and extends the period of performance through November 30, 2026.

The lighting upgrades will reduce energy use and simplify maintenance by reducing the variety of replacement bulbs needed. The Department requested bids from three area electrical contractors. One did not respond, and another exceeded the grant amount. The third confirmed availability to begin during the first week of October and complete the work by November 30, 2026, the deadline for expending the grant funds.

If it please Council, accept the Oregon Department of Energy Grant in the amount of $40,000 and adopt Resolution 26-33 appropriating the funds.

The Fire Department has received an additional $40,000 grant award from the Oregon Department of Energy, hereafter referred to as the Agency, to improve lighting efficiency at Fire Station 1. The Agency is providing this funding through an amendment to the Fire Department’s existing 2024 grant agreement.

In August 2024, the Agency awarded the Fire Department $100,000 to replace the HVAC system at Fire Station 1. A few weeks later, before work began, the Agency contacted the Department and offered additional funding for the project. The Agency subsequently added $15,000, bringing the award to $115,000. The Department has since completed the HVAC replacement.

Approximately one month ago, the Agency again contacted the Fire Department to ask about additional projects, with a preference for lighting efficiency improvements and electric vehicles. The Fire Department identified lighting upgrades at Fire Station 1 as an eligible project. Constructed in 2010, the station contains several types of lighting, including fluorescent, incandescent, compact fluorescent, and halogen. Upgrading these systems will improve energy efficiency and reduce the variety of replacement bulbs the Fire Department must stock and maintain.

The additional funding requires the Department to complete the project and expend the funds by November 30, 2026. Given this limited timeframe, the Department requested bids from three area electrical contractors, specifying that work must begin during the first week of October 2026 and finish by November 30, 2026. One contractor did not respond, and another exceeded the awarded grant funding. The third contractor confirmed the ability to begin during the first week of October and complete the work by the deadline.

Rather than execute a separate grant agreement, the Agency opted to amend the existing agreement by adding $40,000, expanding the scope to include lighting efficiency improvements, and extending the period of performance through November 30, 2026. This amendment brings the total grant award to $155,000, consisting of $115,000 for the completed HVAC replacement and $40,000 for the lighting project.

The $40,000 Oregon Department of Energy grant will fund lighting replacement at Fire Station #1. The City will account for the funds in the Capital Improvement Fund, with Federal Grants as the revenue source and Capital Outlay as the expenditure use. The funds will be expended from G/L Account #45-450-530-3343.