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Home My WebLink AboutCOUNCIL - AGENDA ITEM - 03/16/2021 - SECOND READING OF ORDINANCE NO. 036, 2021, MAKING Agenda Item 3 Item # 3 Page 1 AGENDA ITEM SUMMARY March 16, 2021 City Council STAFF Katie Collins, Water Conservation Coordinator Mariel Miller, Water Conservation Specialist Eric Potyondy, Legal SUBJECT Second Reading of Ordinance No. 036, 2021, Making a Supplemental Appropriation for Grants to Fort Collins Utilities Commercial Water Customers for Water Conservation Landscape Transformation Projects. EXECUTIVE SUMMARY This Ordinance, unanimously adopted on First Reading on March 2, 2021, appropriates unanticipated grant revenue in the amount of $70,000 awarded by the United States Department of Interior, Bureau of Reclamation ("Reclamation") to the Fort Collins Utilities Water Conservation Division ("Water Conservation"). The funds will support commercial-scale waterwise landscape transformations through the Xeriscape Incentive Program (also known as "XIP"). Eligible participants of the program include but are not limited to homeowners' associations ("HOAs"), businesses, religious organizations, government entities, schools, and other Fort Collins Utilities commercial water customers. STAFF RECOMMENDATION Staff recommends adoption of the Ordinance on Second Reading. ATTACHMENTS 1. First Reading Agenda Item Summary, March 2, 2021 (w/o attachments) (PDF) 2. Ordinance No. 036, 2021 (PDF) Agenda Item 7 Item # 7 Page 1 AGENDA ITEM SUMMARY March 2, 2021 City Council STAFF Katie Collins, Water Conservation Coordinator Mariel Miller, Water Conservation Specialist Eric Potyondy, Legal SUBJECT First Reading of Ordinance No. 036, 2021, Making a Supplemental Appropriation for Grants to Fort Collins Utilities Commercial Water Customers for Water Conservation Landscape Transformation Projects. EXECUTIVE SUMMARY The purpose of this item is to appropriate unanticipated grant revenue in the amount of $70,000 awarded by the United States Department of Interior, Bureau of Reclamation (" Reclamation") to the Fort Collins Utilities Water Conservation Division ("Water Conservation"). The funds will support commercial-scale waterwise landscape transformations through the Xeriscape Incentive Program (also known as "XIP"). Eligible participants of the program include but are not limited to homeowners' associations ("HOAs"), businesses, religious organizations, government entities, schools, and other Fort Collins Utilities commercial water customers. STAFF RECOMMENDATION Staff recommends adoption of the Ordinance on First Reading. BACKGROUND / DISCUSSION Water Conservation is experiencing an increased need for support and education around commercial-scale waterwise landscape transformation projects (e.g. turf-to-native grass or turf-to-other low-water-use landscapes) due to: (1) increases in the Excess Water Use surcharge; (2) community interest; (3) the need for more drought- and heat-tolerant landscapes in the face of climate change; and (4) the need to progress toward the water use goal of 130 gallon per capita per day (GPCD) by the year 2030 set forth in the City’s Water Efficiency Plan. The Water Efficiency Plan, adopted by Council in 2016, identifies working with commercial customers on reducing outdoor water use as progress towards two of the five “key areas of opportunity,” to achieve long-term water savings. From research, surveys, and focus-groups, staff have identified that funding and educational/technical resources are two main barriers to customers completing outdoor water conservation projects. In the 2019-20 Budgeting for Outcomes process, Water Conservation staff sought City funds to support a commercial-scale landscape program similar to the funded single-family residential Xeriscape Incentive Program. This request for City funds was supported by the Water Board but did not ultimately receive funding. Water Conservation subsequently received $70,000 of grant funding from the Colorado Water Conservation Board in 2020-2021 for an expansion of the Xeriscape Incentive Program for HOAs and other Utilities commercial water customers. The City sought and received a $70,000 grant from the United States Department of Interior, Bureau of Reclamation (“Reclamation”) pursuant to Resolution 2019-056. (Attachment 1) The City then entered into the grant agreement. (Attachment 2) The $70,000 from Reclamation will provide funding to support additional ATTACHMENT 1 COPY Agenda Item 7 Item # 7 Page 2 rebates for commercial water customer landscape transformation projects in 2021. The grant from Reclamation will help fund approximately eight projects this year that will save an estimated 800,000 gallons of water annually. Staff anticipates awarding between $200 - $15,000 per project. CITY FINANCIAL IMPACTS The $70,000 in grant expenditures initially will be funded from prior year reserves from the Water Fund, which will be replenished upon receiving reimbursements from Reclamation. Per the grant agreement with Reclamation, required matching funds are satisfied via a prior and related state grant from the Colorado Water Conservation Board. Any additional required match will come from lapsing appropriations. BOARD / COMMISSION RECOMMENDATION Water Board voted to support Water Conservation Staff in the application for the Reclamation grant at the April 18, 2019 Water Board Regular Meeting. (Attachment 3) ATTACHMENTS 1. Resolution 2019-056 (PDF) 2. Grant Agreement (PDF) 3. Water Board Minutes Excerpt, April 18 2019 (PDF) ATTACHMENT 1 COPY -1- ORDINANCE NO. 036, 2021 OF THE COUNCIL OF THE CITY OF FORT COLLINS MAKING A SUPPLEMENTAL APPROPRIATION FOR GRANTS TO FORT COLLINS UTILITIES COMMERCIAL WATER CUSTOMERS FOR WATER CONSERVATION LANDSCAPE TRANSFORMATION PROJECTS WHEREAS, the City owns and operates Fort Collins Utilities (“Utilities”), which includes a water utility that provides water to customers in its service area; and WHEREAS, water conservation is a tool that is used by Utilities, primarily through the Utilities Water Conservation Division, to manage and reduce the demand for water service from the water utility by Utilities customers, which is beneficial to the City, the water utility, and its ratepayers by, among other reasons, helping to ensure that the demand for water does not exceed supplies, which could result in more shortages and other adverse impacts; and WHEREAS, pursuant to Resolution No. 2019-056, the City sought a grant from the United Stated Department of Interior, Bureau of Reclamation (“Reclamation”), and subsequently entered into a grant agreement, dated May 5, 2020, with Reclamation; and WHEREAS, said grant agreement provides for a grant of $70,000 to the City pursuant to its terms and conditions; and WHEREAS, said grant funds will provide funding to support additional rebates for Utilities commercial water customer landscape transformation projects in 2021 through the Xeriscape Inceptive Program; and WHEREAS, the expenditures to support such landscape transformation projects will initially be funded from prior year reserves from the Water Fund, which will be replenished upon receiving reimbursements from Reclamation; and WHEREAS, this appropriation benefits public health, safety and welfare of the citizens of Fort Collins, the water utility, and its ratepayers, and serves the public purpose of helping to ensure that the demand for water does not exceed supplies, which could result in more shortages and other adverse impacts; 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, does not exceed the current estimate of actual and anticipated revenues to be received during the fiscal year; and WHEREAS, the City Manager has recommended the appropriation described herein and determined that this appropriation is available and previously unappropriated from the Water Fund and will not cause the total amount appropriated in the Water Fund to exceed the current estimate of actual and anticipated revenues to be received in that fund during any fiscal year. -2- 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 unanticipated grant revenue in the Water Fund the sum of SEVENTY THOUSAND DOLLARS ($70,000) for expenditure in the Water Fund for commercial-scale waterwise landscape transformation projects through the Xeriscape Incentive Program and appropriated therein. Introduced, considered favorably on first reading, and ordered published this 2nd day of March, A.D. 2021, and to be presented for final passage on the 16th day of March, A.D. 2021. __________________________________ Mayor ATTEST: _______________________________ City Clerk Passed and adopted on final reading on the 16th day of March, A.D. 2021. __________________________________ Mayor ATTEST: _______________________________ City Clerk