City Approves ‘Green Lab’ Request for Stimulus Funds

The Falls Church City Council unanimously voted to request $25 million in federal stimulus funds Monday night for a “Zero-Net Energy” demonstration project developed by a community task force led by developer Bob Young and Falls Church Housing Corporation head Carol Jackson.  Vice Mayor Hal Lippman and Councilmembers Nader Baroukh, Dan Maller, David Snyder, Daniel Sze, and Lawrence Webb all voted aye after a long and probing debate.  Mayor Robin Gardner was absent. 

The Zero-Net Energy proposal, also referred to as the “Green Lab” proposal, was first presented to the Council last week and was on a fast-track from the beginning, with the proponents stating that a vote this week was essential.  Although no federal deadline for the application exists, proponents stated that waiting beyond June 30 to submit the application would mean the proposal would be considered after those from other cities.   

Still, the proposal narrowly avoided postponement when a motion to postpone by Councilmember Nader Baroukh failed on a 3-3 vote.  Snyder and Webb voted with Baroukh.  Lippman, Maller and Sze opposed. 

Earlier in the three hour debate, the measure appeared headed for defeat, with Baroukh, Lippman and Webb all voicing serious reservations. 

Baroukh started the questioning by referencing earlier communications from City Manager Wyatt Shields raising questions about the City’s ability to staff the project.   

“What won’t get done [if the city staff has to implement the program],” Baroukh asked Shields.  “What grant applications won’t get written?  I don’t want to see basic city services suffer.” 

Shields admitted that those were “big questions” and said the Green Labs program would be very disruptive.  “I don’t know how we’re going to do it,” he said.  But then he added “There is a great deal of staff commitment . . .  I have a sense that if the City Council tells us to go forward, the staff wants to work on it.”

Webb also expressed reservations, noting that the City’s “neck is on the line” and that there were “legitimate questions that haven’t been answered.”

Lippman voiced similar concerns, raising questions about the size of the program versus potential benefits.  “This is $25 million,” he said.  “That’s a third of our city budget.”  He told the proponents “You have to be a lot more concrete for me to understand the benefits.  I’m just not there yet.” 

But Snyder and Maller proposed changes which seemed to alleviate some of their colleagues’ concerns.  Snyder successfully excised a “Pay As You Throw” provision that would require a tax on trash, noting that he could not support adding an additional burden on City residents for a basic City service.  He also questioned the expectations of those who had helped develop the proposal, noting that it was unusual that an outside consultant had developed a document for City staff to present to the Council.  Snyder stated that strict adherence to procurement law would be required, including competitive bidding, and that those who participated in drafting the proposal should not expect to profit it from it simply due to their early involvement. 

Maller’s amendment added language at the end of the proposal to make clear that the program would comply with all state and federal procurement laws and that the City Council would continue to have oversight over the program after any grant award. 

During a break in the discussions, Baroukh had sidebar conversations with City Manager Shields, which seemed to address his staffing concerns.  After the Council reconvened, Baroukh publicly revisited the staffing issue with Shields, who noted that under the terms of the proposal the city would get management help from a non-profit organization created to run the program day-to-day. 

After that exchange, Lippman called for votes on Baroukh’s unsuccessful motion to postpone, a voice vote on Maller’s amendment, and final passage of the Green Labs measure. 

One point of discussion, raised by the Falls Church Times during Citizen’s Comments, and then again from the dais by Baroukh and Snyder, was whether the application would clarify that green projects already planned would be eligible for funding under the program.  Prompting the question was the proposal’s specific mention of a geothermal heating and cooling system for an affordable housing project.  This raised inquiries into whether the Falls Church Housing Corporation (“FCHC”) had already committed to include a geothermal system in the planned City Center South Apartments (“CCSA”), which presumably would make it an inappropriate beneficiary of federal stimulus monies, because stimulus funds are intended to encourage activity which otherwise would not occur. 

An FCHC presentation of November 2008, which still appears here on the City website, indicates that CCSA will include a geothermal system, but Assistant City Manager Cindy Mester noted that the geothermal system was not a part of the legal requirements for CCSA, and Housing Corporation official Carol Jackson indicated that the previous documents are not accurate due to subsequent changes in the project.  

With the City Council’s support, the next step for the proposal will be submission to the U.S. Department of Energy on June 30.