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Home My WebLink AboutCOUNCIL - AGENDA ITEM - 04/20/2021 - FIRST READING OF ORDINANCE NO. 057, 2021, MAKING S Agenda Item 15 Item # 15 Page 1 AGENDA ITEM SUMMARY April 20, 2021 City Council STAFF John Phelan, Energy Services Manager John Duval, Legal SUBJECT First Reading of Ordinance No. 057, 2021, Making Supplemental Appropriations of Anticipated Revenue and Prior Year Reserves for the Epic Homes Program. EXECUTIVE SUMMARY The purpose of this item is to appropriate $69,000 in grant funds from Bloomberg Philanthropies as part of the Bloomberg Mayor’s Challenge award, and $8,024 in interest earned on previous Bloomber g Mayor’s Challenge grant funds, from the Fort Collins Utilities Light and Power Fund to be expended for the ongoing project management and operations of Epic Homes Program by Utility Services and to pay a sub -grant to Colorado State University for indoor environmental quality research. The Bloomberg Philanthropies funds come from (1) the 2021 grant installment of $69,000 and (2) $8,024 in interest earned on advanced Bloomberg Philanthropies funds from the Bloomberg Mayor’s Challenge, as of December 31, 202 0. Based on terms of the Bloomberg grant agreement, all advanced grant funds are subject to accruing interest, with such interest earned being reported on a semi-annual basis, and with such earnings used to further project goals as demonstrated in the agreement between Bloomberg and the City. STAFF RECOMMENDATION Staff recommends adoption of the Ordinance on First Reading. BACKGROUND / DISCUSSION Epic Homes In October 2018, Fort Collins was a winner of the 2018 Bloomberg Mayors Challenge and the associ ated $1 million prize. The 2018 Bloomberg Mayors Challenge involved over 300 cities proposing ideas to address important issues in their community. The City’s proposal, Epic Homes, was selected as a winner for its innovative approach to providing health an d equity benefits to residents, specifically for low-to-moderate income renters, by improving the energy efficiency of rental homes. Residential property owners can take advantage of Epic Homes’ easy streamlined steps to make their homes more comfortable, healthy, and efficient. Partnering with Colorado State University, Fort Collins has also established a research study which links the health and well-being indicators of improved indoor environmental quality. Epic Homes is a comprehensive portfolio for single-family home performance, for both owner-occupied and renter-occupied properties. Epic Homes includes energy assessments and rebates, on -bill financing (Epic Loans), an indoor environmental quality and health/well-being study (IEQ Study), and documentation of home improvements (Epic Certificate). Detailed information regarding the Epic Homes program can be found at www.fcgov.com/utilities/epichomes/. Agenda Item 15 Item # 15 Page 2 Bloomberg Mayors Challenge Funding The Bloomberg Mayors Challenge grant supports a three-year performance period from 2019 through 2021. The project includes a semi-annual review of the budget categories with an opportunity to revise the amounts, subject to the approval of Bloomberg Philanthropies. The 2021 tranche of the Bloomberg award for $69,000 was received in March 2021. Additionally, the 2020 Bloomberg award funds earned $8,024 in interest over the course of 2020 from funds advanced by Bloomberg Philanthropies - funds received in advance to spending in accordance with grant terms. The funds listed above will support a subgrant to Colorado State University to implement an indoor environmental quality and health/well-being study and project costs for Fort Collins Utilities (e.g., staff, supplies, workshops/trainings, travel, software, loan-related fees, marketing, etc.). Table 1 summarizes the appropriation. Description Amount Appropriated To Funds Source Colorado State University Indoor Environmental Quality (IEQ) Study $13,000 Operating business unit of L&P Bloomberg Award - 2021 Installment Grant project management and operating expenses $56,000 Operating business unit of L&P Bloomberg Award - 2021 Installment Grant project management and operating expenses $8,024 Operating business unit of L&P Bloomberg Award - 2020 Interest Earned on Award Funds Before Expensed Total $77,024 The City Manager recommends these appropriations and has determined that the funds for them are available and previously unappropriated from the Light and Power Fund and will not cause the total amount appropriated in the Light and Power Fund to exceed the current estimate of actual and anticipated revenues to be received in that Fund during this year. CITY FINANCIAL IMPACTS The 2021 funds for appropriation have been received and are being held on the Light & Power balance sheet awaiting this appropriation Ordinance. The 2020 interest earned is being held in Light & Power reserves. The appropriation of these funds will enable Utilities to move forward with the nex t phases of the project. There is no financial exposure to the City. -1- ORDINANCE NO. 057, 2021 OF THE COUNCIL OF THE CITY OF FORT COLLINS MAKING SUPPLEMENTAL APPROPRIATIONS OF ANTICIPATED REVENUE AND PRIOR YEAR RESERVES FOR THE EPIC HOMES PROGRAM WHEREAS, the City has previously established and funded a program to assist certain Electric Utility customers of Fort Collins Utility Services ("Utility Services") in financing energy-efficiency and renewable-energy improvements for single-family residential properties they own by making loans to these customers, whether their prope rties are owner or renter occupied ("Epic Homes Program"); and WHEREAS, in 2018, the City was awarded a $1 million grant from Bloomberg Philanthropies ("Bloomberg") to be used for the Epic Homes Program, which grant is being paid to the City under an agreement with Bloomberg that provides for certain annual payments to the City; and WHEREAS, the City has recently received from Bloomberg the 2021 grant payment in the amount of $69,000, which payment has been deposited into the City's Light and Power Fund established in City Code Section 8-77 (the "Light & Power Fund"); and WHEREAS, previous years' grant funds received from Bloomberg that have been deposited in the Light & Power Fund earned $8,024 of interest in 2020, which amount is unexpended from the Light & Power Fund; and WHEREAS, it is proposed the $69,000 received from Bloomberg in 2021 be appropriated from the Light & Power Fund and the $8,024 in interest be appropriated from the reserves in the Light & Power Fund from prior years with this total amount of $77,024 to be expended as follows: (i) $13,000 for payment to Colorado State University for the Indoor Environmental Quality Study the City has commissioned in connection with the Epic Homes Program (the "CSU Study"), and (ii) $64,024 for Utility Services' costs to manage and operate the Epic Homes Program; and WHEREAS, Article V, Section 9 of the City Charter permits the City Council, upon recommendation of the City Manager, to make supplemental appropriations by ordinance at any time during the fiscal year, provided that the total amount of such supplemental appropriations, in combination with all previous appropriations for that fiscal year, do not exceed the current estimate of actual and anticipated revenues to be received during the fiscal year; and WHEREAS, Article V, Section 9 of the City Charter also permits the City Council to appropriate by ordinance at any time during the fiscal year such funds for expenditure as may be available from reserves accumulated in prior years in the Light & Power Fund, notwithstanding that such reserves were not previously appropriated; and WHEREAS, the City Manager has recommended the appropriation described herein and determined that this appropriation is available and previously unappropriated from the Light & -2- Power Fund and will not cause the total amount appropriated in the Light & Power Fund to exceed the current estimate of actual and anticipated revenues to be received in that Fund during this fiscal year; and WHEREAS, these appropriations benefit the public's health, safety and welfare and serve the utility and public purposes of supporting the Epic Homes Program that improves the energy efficiency of older homes in Fort Collins and helps achieve the Our Climate Future greenhouse gas reduction and e nergy efficiency goals, thereby benefiting Electric Utility ratepayers and the health, safety and comfort of the inhabitants of the improved homes. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows: Section 1. That the City Council hereby makes and adopts the determinations and findings contained in the recitals set forth above. Section 2. That there is hereby appropriated from anticipated revenue in the Light & Power Fund the sum of FIFTY-SIX THOUSAND DOLLARS ($56,000) for expenditure from the Light & Power Fund for Utility Services’ costs to manage and operate the Epic Homes program. Section 3. That there is hereby appropriated from anticipated revenue in the Light & Power Fund the sum of THIRTEEN THOUSAND DOLLARS ($13,000) for expenditure from the Light & Power Fund for the CSU Study. Section 4. That there is hereby appropriated from prior year reserves in the Light & Power Fund the sum of EIGHT THOUSAND TWENTY-FOUR DOLLARS ($8,024) for expenditure from the Light & Power Fund for Utility Services’ costs to manage and operate the Epic Homes program. Introduced, considered favorably on first reading, and ordered published this 20th day of April, A.D. 2021, and to be presented for final passage on the 4th day of May, A.D. 2021. __________________________________ Mayor ATTEST: _______________________________ City Clerk -3- Passed and adopted on final reading on the 4th day of May, A.D. 2021. __________________________________ Mayor ATTEST: _______________________________ City Clerk