HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 06/07/2022 - SECOND READING OF ORDINANCE NO. 058, 2022, APPROPR Agenda Item 2
Item # 2 Page 1
AGENDA ITEM SUMMARY June 7, 2022
City Council
STAFF
Adam Bromley, Director of Operations & Technology
Kendall Minor, Utilities Executive Director
Lance Smith, Utilities Strategic Finance Director
Cyril Vidergar, Legal
SUBJECT
Second Reading of Ordinance No. 058, 2022, Appropriating Prior Year Reserves in the Light & Power Fund for
Purchase of Distribution and Substation Transformers.
EXECUTIVE SUMMARY
This Ordinance, unanimously adopted on First Reading on May 17, 2022, brings forward an off-cycle
supplemental appropriation of Light & Power reserves to fund a capital project consisting of the purchase of
distribution and substation transformers. Information from transformer vendors indicates that prices and lead
times are rising significantly, due to supply chain and inflationary challenges. With respect to distribution
transformers, it will be necessary to either scale back the number of distribution transformers the City planned
to purchase this year or request an additional ap propriation to permit purchase of the expected number of
transformers necessary to accommodate new customers and prudent asset replacement. A reduction in the
number of transformers purchased could negatively impact new development and system reliability. The
proposed supplemental appropriation includes $1,432,000 to allow more distribution transformers to be
ordered in 2022 so that sufficient stock can be delivered as soon as available, likely in late 2023 at the earliest.
In addition, a new substation w ill be necessary to adequately serve the northeast areas of the City as those
areas develop. The proposed supplemental appropriation also includes $2,234,000 for the two substation
transformers needed to serve this load growth. Again, this supplemental a ppropriation is recommended to
avoid waiting to place these orders when additional funds would otherwise become available in early 2023 and
should allow these transformers to be delivered within the next three years given current lead-times. The total
supplemental appropriation being proposed for Council consideration is for $3,666,000.
Council Finance Committee minutes that were not available for First Reading have been included.
STAFF RECOMMENDATION
Staff recommends the adoption of the Ordinance on Sec ond Reading.
ATTACHMENTS
1. Council Finance Committee Minutes (excerpt) (PDF)
2. First Reading Agenda Item Summary, May 17, 2022 (w/o attachments) (PDF)
3. Ordinance No. 058, 2022 (PDF)
Finance Administration
215 N. Mason
2nd Floor
PO Box 580
Fort Collins, CO 80522
970.221.6788
970.221.6782 - fax
fcgov.com
Finance Committee Meeting Minutes
May 5, 2022, 4-6 pm
Zoom
Council Attendees: Julie Pignataro, Kelly Ohlson, Emily Francis, Susan Gutowsky
Staff: Kelly DiMartino, Travis Storin, Kyle Stannert, Tyler Marr, Carrie Daggett,
John Duval, Teresa Roche, Chirs Martinez, Kevin Wilkins, Gerry Paul, Blaine
Dunn, Randy Bailey, Trevor Nash, Amanda Newton, Renee Callas, Jo Cech,
Amanda King, Sarah Meline, Jackie Thiel, Javier Echeverria Diaz,
Claudia Menendez, SeonAh Kendall, Rachel Askeland, Kevin Wilkins Beth Yonce,
Beth Rosen, Brittany Depew, Dave Lenz, Sheena Freve, Zack Mozer,
Molly Reeves, Lawrence Pollack, Rachel Springob, Victoria Shaw,
Caryn Champine, Monica Martinez, Marcy Yoder, JC Ward, Lance Smith,
Adam Bromley, Judy Hueser, Tracy Ochsner, Erik Martin, Brian Hergott,
Ingrid Decker, Patty Netherton, Carolyn Koontz
Others: Kevin Jones, Chamber
______________________________________________________________________________
Meeting called to order at 4:00 pm
Approval of minutes from the April 7, 2022, Council Finance Committee Meeting. Kelly Ohlson moved for approval
of the minutes as presented. Emily Frances seconded the motion. Minutes were approved unanimously via roll call
by; Julie Pignataro, Kelly Ohlson and Emily Francis.
A.Light & Power Supplemental Appropriation
Adam Bromley, Interim Deputy Director, Utilities
Lance Smith, Director, FP&A
EXECUTIVE SUMMARY
Based on information from vendors of distribution transformers, it is necessary to either scale back the number
of transformers the City will purchase this year or request an additional appropriation to maintain the expected
transformer demand for both growth as well as prudent asset replacements. A reduction in the number of
transformers purchased could negatively impact new development and system reliability. Staff is recommended
a supplemental appropriation of $1,432,000 which would allow for more transformers to be ordered in 2022 to
be delivered as soon as they are available, likely in late 2023 at the earliest.
Looking toward future growth a new substation will be necessary to adequately serve the northeast areas of the
City as those areas are developed. A supplemental appropriation is also being requested to order the two
ATTACHMENT 1
substation transformers that will be needed to serve this load growth. Again, this supplemental appropriation
rather than waiting for additional funds to become available in early 2023 will allow these transformers to be
delivered within the next 3 years. Staff is proposing to bring forth an appropriation ordinance which also
includes $2,234,000 for two substation transformers.
The total supplemental appropriation being proposed for your consideration is for $3,666,000.00.
GENERAL DIRECTION SOUGHT AND SPECIFIC QUESTIONS TO BE ANSWERED
Does Council Finance Committee support an off-cycle appropriation of L&P reserves to procure enough
distribution transformers so that L&P can support new construction and necessary replacements through 2024?
In addition, does Council Finance Committee support an off-cycle appropriation of L&P reserves to begin the
procurement process for two (2) substation transformers that will be used to complete the construction of a
new substation that serves Northeast Fort Collins?
BACKGROUND/DISCUSSION
Distribution Transformers
In the last six weeks or so, L&P staff has engaged with the distribution transformer manufacturer industry to
better understand the significant price increases to the transformers that we typically purchase. The main
drivers of the price increases are related to supply chain issues mainly related to shortages and/or significant
inflationary pressures for almost all raw materials used to construct a distribution transformer including
transformer core steel and aluminum secondary winding supplies. While some manufacturers are better off
than others, simply due to their buying power and existing contracts in these markets, these supply chain issues
have far-reaching impacts to prices, lead times, labor and transportation costs, and production capacity. What
we’re hearing from the industry related to supply chain issues suggests that these price increases and extended
lead times will definitely endure the short term (i.e., through 2023) and will likely continue into a longer term, if
not permanent, scenario.
L&P typically purchases a year’s worth of transformers in advance; L&P uses the economic order quantity
estimating methodology using historical usage data for each stock number along with known future work order
needs to arrive at the quantity for purchase for each year. This methodology works really well when lead times
are reasonable (i.e., 10-20 weeks) or if lead time increases changed very gradually. Depending on the specific
needs of the transformer design, lead times can be 3-5 times longer than what we saw at this time last year,
which does not provide enough time to react adequately. There are quite a few new developments and capital
projects on the horizon so we can assume that new construction needs will not go away in the near future. L&P
projects that current stock levels could last until next summer or fall (2023) if we are very intentional with how
we use units that we have. However, because lead times for the transformers we use the most often are greater
than 1.5 years, we need to order as many as we can now to make sure that they arrive close to when we’re
projecting the existing stock to run out.
Based on historical usage and projected needs, L&P staff has identified three transformer models (specific size
and type) with the highest likelihood of use prior to the end of 2023. Staff intends to utilize existing budget
appropriated for one order of the single most used transformer type and size (single phase submersible). The
requested supplemental appropriation will fund an additional quantity of that same transformer type and size as
well as necessary quantities of the other two transformer models with the highest usage (three phase pad
mounted, 75 kVA and 150 kVA). Because we are relying on existing stock in the other transformer models and
we will need to stay ahead of the long lead times moving into the future, orders for all transformer models will
need to be placed at the beginning of 2023 and 2024 in order to receive those transformers in 2024 and 2025.
This will change the estimated budget for transformers that was originally planned in the Capital Improvement
Plan (CIP) and 2023/24 BFO offer. All of these changes are shown in the table below.
2022
2022 Transformer Order Total Cost $2.225 M
2022 Transformer Budget $0.793 M
Supplemental Appropriation Request to fulfill Total Cost $1.432 M
2023 2024
Transformer Budget Planned in CIP $1.132 M $1.260 M
Updated BFO Offer for Transformer Budget $4.123 M $3.749 M
Staff has done enough research to feel confident that these orders along with a supplemental appropriation for
additional orders will supplement existing stock levels so that L&P can continue to serve existing and new
development. Staff also has contingency plans in place to ensure delivery of electric service to new and existing
customers.
Substation Transformers
Anticipated annexations and growth in NE Fort Collins will require a new to supply electric capacity to new
customer loads so as to not overburden existing substations in the surrounding areas. A new substation will
allow for Light & Power to continue to operate the system at our current substation and feeder design standards
which guarantee high reliability and stability. Typically, each substation comprises two substation power
transformers and substation switchgear. This new substation is a planned project in the Capital Improvement
Plan (CIP) that was scheduled for the 2023/24 budget cycle.
Due to price increases and lead times for distribution transformers, staff was concerned that power
transformers would have similar supply chain issues. Upon reaching out to the manufacturer that provided
power transformers to L&P in the recent past, we found that there are similar supply chain issues affecting
power transformer manufacturers. Lead times for these power transformers are longer than 3 years at this
point; however, prices didn’t increase in the same manner. In order to avoid even longer delays for these
transformers, a supplemental appropriation to begin the procurement process immediately is prudent.
The lead times of these transformers does change the trajectory of the substation construction schedule and
associated purchases of other high dollar materials (i.e., switchgear). The same amount of capital dollars is
proposed to complete construction of the new substation; however, it will be allocated different than what was
planned for in the CIP. The table below shows what was planned for in the CIP and what changes to that plan are
if supplemental appropriation and BFO offer are approved.
2022 2023 2024
2021 Capital Improvement Plan $6.649 M $3.761 M
Supplemental Appropriation/Updated BFO offer $2.234 M $0.300 M $7.876 M
The following table shows where L&P reserves are and will be after these supplemental appropriations:
DESCRIPTION TOTAL
Year-End 2020 Total Reserves $48.7 M
Minimum Required ($8.0 M)
Appropriated ($17.1 M)
Year-End 2020 Reserves Available $23.4 M
2021 Preliminary Additions ~ $19 M
Year-End 2021 Reserves Available ~$42 M
Connexion Funding ($20 M)
Transformers ($3.6 M)
Remaining Reserves ~$18.4 M
GENERAL DIRECTION SOUGHT AND SPECIFIC QUESTIONS TO BE ANSWERED
Does Council Finance Committee support an off-cycle appropriation of L&P reserves to procure enough
distribution transformers so that L&P can support new construction and necessary replacements through 2024?
In addition, does Council Finance Committee support an off-cycle appropriation of L&P reserves to begin the
procurement process for two (2) substation transformers that will be used to complete the construction of a
new substation that serves Northeast Fort Collins?
DISCUSSION / NEXT STEPS:
On April 14th, we received unanimous support from the Energy Board to move forward with both supplemental
appropriations from reserves.
Julie Pignataro; I am a yes to both – my main concern was the health of the reserves, but I understand why we
need to do this.
Adam Bromley confirmed that the minimum required fund balance is $8M and the remaining available balance
after these appropriations would be $18M
Julie Pignataro; do transformers wear out? Are we replacing them or are these new?
Adam Bromley; they do have useful life and depending on several different factors we do proactively replace
Substation transformers are built, and they have mechanisms in place that help extend their life
They are a high dollar item and are critical
Julie Pignataro; are transformers recyclable?
Adam Bromley; we send them to the company we contract with, and they do all of the necessary recycling and
scraping.
Julie Pignataro; and the cost is fixed when you buy them no matter how long it takes to get here?
Adam Bromley; this is unprecedented in the industry – this specific scenario - once we make that purchase and
we are under contract with the manufacturer the cost is fixed however we could see that shift a bit – they may
come back with some T&Cs saying they might need to change the prices because of the long lead times but we
haven’t seen that play out yet.
Lead times were still relatively short at the end of 2021.
Lead times went from 10-20 weeks turnaround to 80-90 weeks (3-4 times longer lead time)
Trying to buy more upfront to make sure we have what we need going forward.
Emily Francis; I am a yes to both - this makes sense due to lead times etc.
Have you talked about projecting the use of transformers – our projected use for electrification of homes and
businesses and EV charging
Adam Bromley; we are just starting to understand how that is going to affect our planning and design processes
The transformers will be adequate and we do have the ability to upsize a transformer if we need to - if there is
too much load on a certain area – with electrification we are also looking at trying to shift some of the loads to
different times to even things out so you are not always hitting that transformer with tons of load all at the
same time – spread out throughout the day which will take some planning and technology to do that well.
The transformers we are putting out there are going to be able to handle the electrification, but we are going to
need to update some of our processes.
Emily Francis; what is the life span of a transformer?
Adam Bromley; it can be 40 years, but some are shorter, and some are longer – a lot depends on what happens
in the vault environment – water, loading and other factors impact life span as well. In general, 40 years is
where we are seeing that cut off.
We are trying to integrate what we are seeing with electrification into our planning processes There are some
unknowns as part of that – load factor involved with the new heat pumps – what will EVs look like on the system
–there is some work to do in order to understand what the future looks like and trying to incorporate that into
our planning and designing processes.
Kelly Ohlson; yes and yes – a very thorough presentation
OTHER BUSINESS:
Travis Storin; I did want to highlight following up on the discussion at Council Tuesday evening that the Grocery
Tax Rebate Program is scheduled to come back to this committee in July.
Meeting Adjourned at 5:25 pm
Agenda Item 6
Item # 6 Page 1
AGENDA ITEM SUMMARY May 17, 2022
City Council
STAFF
Adam Bromley, Director of Operations & Technology
Kendall Minor, Utilities Executive Director
Lance Smith, Utilities Strategic Finance Director
Cyril Vidergar, Legal
SUBJECT
First Reading of Ordinance No. 058, 2022, Appropriating Prior Year Reserves in the Light & Power Fund for
Purchase of Distribution and Substation Transformers.
EXECUTIVE SUMMARY
The purpose of this item is to bring forward an off-cycle supplemental appropriation of Light & Power reserves
to fund a capital project consisting of the purchase of distribution and substation transformers. Information from
transformer vendors indicates that prices and lead times are rising significantly, due to supply chain and
inflationary challenges. With respect to distribution transformers, it will be necessary to either scale back the
number of distribution transformers the City planned to purchase this year or request an additional appropriation
to permit purchase of the expected number of transformers necessary to accommodate new customers and
prudent asset replacement. A reduction in the number of transformers purchased could negatively impact new
development and system reliability. The proposed supplemental appropriation includes $1,432,000 to allow more
distribution transformers to be ordered in 2022 so that sufficient stock can be delivered as soon as available,
likely in late 2023 at the earliest.
In addition, a new substation will be necessary to adequately serve the northeast areas of the City as those
areas develop. The proposed supplemental appropriation also includes $2,234,000 for the two substation
transformers needed to serve this load growth. Again, this supplemental appropriation is recommended to avoid
waiting to place these orders when additional funds would otherwise become available in early 2023 and should
allow these transformers to be delivered within the next three years given current lead-times.
The total supplemental appropriation being proposed for Council consideration is for $3,666,000.
STAFF RECOMMENDATION
Staff recommends adoption of the Ordinance on First Reading.
BACKGROUND / DISCUSSION
Distribution Transformers
Light & Power (L&P) staff has engaged with the distribution transformer manufacturer industry to better
understand the significant price increases to the transformers that are typically purchased. The main drivers of
the price increases are related to supply chain issues mainly related to shortages and/or significant inflationary
pressures for almost all raw materials used to construct a distribution transformer, including transformer core
steel and aluminum secondary winding supplies. While some manufacturers are better off than others due to
their buying power and existing contracts in these markets, these supply chain issues have far-reaching impacts
to prices, lead times, labor and transportation costs, and production capacity. Recent industry communications
ATTACHMENT 2
COPY
Agenda Item 6
Item # 6 Page 2
related to supply chain issues suggest that these price increases and extended lead times will endure the short
term (i.e., through 2023) and will likely continue longer term or become permanent.
L&P typically purchases a year’s worth of transformers in advance. L&P uses the economic order quantity
estimating methodology, which considers historical usage data for each stock number along with known future
work order needs, to arrive at the number of transformers to be purchased each year. This methodology works
well when lead times are reasonable (i.e., 10-20 weeks) or if lead time increases gradually. Depending on the
specific transformer design needed, lead times can be approximately three to five times longer than seen in
2021, which does not provide enough time to react adequately. New developments and capital projects are on
the horizon and L&P anticipates that new construction needs will not go away soon. L&P projects its current
stock of distribution transformers may last until the summer or fall of 2023 with intention and judicious use of the
units. Due to the greatly increased lead times on these transformers and to avoid running out of current
transformer stock, L&P needs to order transformers now.
Based on historical usage and projected needs, L&P staff has identified three transformer models (specific size
and type) that are most likely to be needed prior to the end of 2023. Staff intends to use existing appropriated
funds to order the single most used transformer type and size (single phase submersible). The requested
supplemental appropriation will fund an additional quantity of that same transformer type and size, as well as
necessary quantities of the other two high-use transformer models (three phase pad mounted, 75 kVA and 150
kVA). Because L&P relies on existing stock in the other transformer models and will need to stay ahead of the
long lead times moving into the future, orders for all transformer models will need to be placed at the beginning
of 2023 and 2024 to receive those transformers in 2024 and 2025. This will change the estimated budget for
transformers that was originally planned in the Capital Improvement Plan (CIP) and 2023/24 BFO offer. All
changes are shown in the table below.
2022
2022 Transformer Order Total Cost $2.225 M
2022 Transformer Budget $0.793 M
Supplemental Appropriation Request to fulfill Total Cost $1.432 M
2023 2024
Transformer Budget Planned in CIP $1.132 M $1.260 M
Updated BFO Offer for Transformer Budget $4.123 M $3.749 M
Staff has researched and feels confident that these orders, along with the proposed supplemental appropriation
for the identified additional orders, will supplement existing stock levels such that L&P can continue to serve
existing and new development. Staff also has contingency plans in place to ensure delivery of electric service to
new and existing customers due to unexpected circumstances.
Substation Transformers
Anticipated annexations and growth in northeast Fort Collins will require a new substation to supply electric
capacity to new customer loads to avoid overburdening existing substations in surrounding areas. A new
substation will allow L&P to continue operating the system at current substation and feeder design standards,
which guarantee high reliability and stability. Typically, each substation includes two substation power
transformers and substation switchgear. This new substation is a planned in the Capital Improvement Plan (CIP)
and scheduled for the 2023/24 budget cycle.
Staff also reached out to the manufacturer that historically provided substation transformers to L&P and
consulted other industry sources and discovered there are similar supply chain issues affecting substation
transformer manufacturers. While lead times for these transformers are longer than 3 years at this point, prices
do not appear to be increasing in the same manner. To avoid these longer delays for substation transformers,
the proposed supplemental appropriation will facilitate immediate commencement of the procurement process.
COPY
Agenda Item 6
Item # 6 Page 3
The lead times for substation transformers does change the trajectory of the substation construction schedule
and associated purchases of other high dollar materials (i.e., switchgear). The same amount of capital dollars is
proposed to complete construction of the new substation; however, it will be allocated differently than what was
planned for in the CIP. The table below shows plan reflected in the CIP and the changes to that plan if the
proposed supplemental appropriation and BFO offer are approved.
2022 2023 2024
2021 Capital Improvement Plan $6.649 M $3.761 M
Supplemental Appropriation/Updated BFO offer $2.234 M $0.300 M $7.876 M
CITY FINANCIAL IMPACTS
Staff does not anticipate any negative financial impacts related to the appropriation from L&P reserves, which
will maintain a healthy positive balance after the proposed appropriation. Knowing that future budget cycles will
be impacted by supply chain constraints and significant price increases, Utilities’ leadership will continue to refine
anticipated capital investment needs and escalating operating costs, and balance those needs with future rate
adjustments and debt issuances.
The following table shows the approximate impacts to L&P reserves after the proposed appropriation:
Description 0BTotal $
Year-End 2020 Total Reserves $48.7 M
Minimum Required ($8.0 M)
Currently Appropriated ($17.1 M)
Year-End 2020 Reserves Available $23.4 M
2021 Preliminary Additions ~$19 M
Year-End 2021 Reserves Available ~$42 M
Connexion Funding ($20 M)
Distribution & Substation Transformers ($3.7 M)
Remaining Reserves ~$18.3 M
BOARD / COMMISSION RECOMMENDATION
Staff presented this request to Council Finance Committee on May 5, 2022.
Staff also presented the proposed supplemental appropriation to the Energy Board at its regular meeting on April
14, 2022. The Board voted unanimously to support the supplemental appropriation of L&P reserves.
(Attachment 1) Adoption of these minutes is anticipated at the regular Board meeting on May 12, 2022.
ATTACHMENTS
1. Energy Board (excerpt) (PDF) COPY
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ORDINANCE NO. 058, 2022
OF THE COUNCIL OF THE CITY OF FORT COLLINS
APPROPRIATING PRIOR YEAR RESERVES IN THE LIGHT & POWER FUND FOR
PURCHASE OF DISTRIBUTION AND SUBSTATION TRANSFORMERS
WHEREAS, the budget needs for Electric Utility Distribution System infrastructure
replacement projects requested in the 2022 Budgeting for Outcomes (BFO) process included all
known capital projects at that time; and
WHEREAS, recent changes in supply markets and increased load growth create a need for
the Electric Utility to accelerate orders for replacement distribution and substation infrastructure;
and
WHEREAS, the current funding shortfall between the approved Electric Distribution
System infrastructure replacement projects requested in the 2022 BFO process and currently
identified needs is due to unanticipated load growth-related projects, escalating materials and
construction costs, and significantly longer manufacturer order fulfillment lead times; and
WHEREAS, this Ordinance appropriates $3,666,000 from the (Electric Utility Enterprise)
Light & Power Fund reserves to be spent in the Electric Distribution System Replacement project
to accelerate ordering of planned replacement distribution and substation transformers to address
current and emerging market conditions that may compromise replacement schedules or delay
planned expansion projects; and
WHEREAS, this supplemental appropriation benefits the public health, safety and welfare
of the residents of Fort Collins and benefits Electric Utility ratepayers by proactively ordering
stock for use in completing scheduled and emerging replacement of high-use infrastructure and
installation of new substation facilities in growth areas in order to maintain reliability and reduce
outage frequency; and
WHEREAS, Utilities staff believes proactively placing orders for such equipment earlier
than initially planned will capture currently lower supply and construction costs than those
anticipated in coming budget cycles and accommodate longer market order lead times, allowing
Utility Services to receive such equipment by planned replacement or installation dates and
maintain its high service standards; and
WHEREAS, in 1995, the City Council adopted Article XII of City Code Chapter 23 to
establish a program to acquire, exhibit and maintain art in public places to be funded by including
in the Council’s appropriations for certain capital projects an amount equal to 1% of the
construction costs for those projects, but this contribution amount for the City’s utilities is limited
to a total annual contribution amount of 0.5% of each utility’s “budgeted operating revenue” (the
“APP Ordinance”); and
WHEREAS, contributions to art in public places for each utility are kept and spent in such
utility’s own enterprise fund, with the exception of maintenance, administration, repair and display
costs pursuant to City Code Section 23-303; and
-2-
WHEREAS, this supplemental appropriation does not require a contribution for art in
public places under the APP Ordinance, as distribution and substation transformers are
traditionally capitalized at the time of purchase as “operation and maintenance” expenses for
Utility facilities, rather than when they are placed into service, even if they become components
of capital projects; therefore, purchase of such equipment is exempt from the contribution
requirements of the APP Ordinance; and
WHEREAS, Article V, Section 9 of the City Charter permits the City Council, upon the
recommendation of the City Manager, to make supplemental appropriations by ordinance at any
time during the fiscal year such funds for expenditure as may be available from reserves
accumulated in prior years, notwithstanding that such reserves were not previously appropriated;
and
WHEREAS, the Interim City Manager has recommended the appropriation described
herein and determined that this appropriation is available and previously unappropriated from the
Light & 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 and all other funds to be received
in this Fund during this fiscal year; and
WHEREAS, Article V, Section 11 of the City Charter authorizes the City Council to
designate in the ordinance when appropriating funds for a capital project, that such appropriation
shall not lapse at the end of the fiscal year in which the appropriation is made, but continue until
the completion of the capital project; and
WHEREAS, the City Council wishes to designate the appropriation herein for the capital
project consisting of the purchase of distribution and substation transformers as an appropriation
that shall not lapse until the completion of the project.
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 prior year reserves in the Light &
Power Fund the sum of THREE MILLION SIX HUNDRED SIXTY-SIX THOUSAND
DOLLARS ($3,666,000) to be expended in the Light & Power Fund for the capital project
consisting of the purchase of distribution and substation transformers.
Section 3. That the appropriation herein for the capital project consisting of the
purchase of distribution and substation transformers is hereby designated, as authorized in Article
V, Section 11 of the City Charter, as an appropriation that shall not lapse at the end of this fiscal
year but continue until the completion of the project.
-3-
Introduced, considered favorably on first reading, and ordered published this 17th day of
May, A.D. 2022, and to be presented for final passage on the 7th day of June, A.D. 2022.
__________________________________
Mayor
ATTEST:
_______________________________
City Clerk
Passed and adopted on final reading on the 7th day of June, A.D. 2022.
__________________________________
Mayor
ATTEST:
_______________________________
City Clerk