HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 10/21/2003 - RESOLUTION 2003-115 AUTHORIZING THE CITY MANAGER T ITEM NUMBER: 21
AGENDA ITEM SUMMARY DATE: October 21, 2003
FORT COLLINS CITY COUNCIL
STAFF: Wendy Williams
Patty Bigner
SUBJECT
Resolution 2003-115 Authorizing the City Manager to Implement a Zero Interest Loan Program.
RECOMMENDATION
Staff recommends adoption of the Resolution.
FINANCIAL IMPACT
Funds are budgeted in the Water,Light and Power, and Natural Resources Funds for this purpose.
Loans will be subject to the availability of funds.
EXECUTIVE SUMMARY
This Resolution will permit the City Manager to administer a zero interest loan program to assist
City residents. Loans are used by the Utilities and Natural Resources to provide an incentive for
homeowners to make energy, water and air quality improvements to their homes.
BACKGROUND:
Zero Interest Loans for Conservation Help (ZILCH) was initiated in 1980 with a $50,000
Community Development Block Grant.The loans were for home improvements to encourage energy
conservation and air quality upgrades. In 1991, Ordinance 84, 1991 authorized the General Fund
to fund the air quality loans and Light and Power to fund the energy conservation loans. The Water
Utilities established a zero interest loan program in 1991 for water service line replacements,
according to Resolution 91-37. In 1993, the program was expanded to include repair of leaking
pipes or plumbing fixtures and the purchase of ultra-low flush toilets for water conservation.
Currently, energy efficiency loans are available for such things as insulation, electric demand
controllers, solar water heaters and furnace replacements. Interior plumbing repairs and ultra-low
flow toilets are a few of the water loan offerings. Some examples of air quality loans are radon
mitigation, wood stove upgrades and gas fireplace inserts.
October 21, 2003 -2- Item No. 21
Over the years,the types of improvements that qualify for loans have changed,due to technological
advancements and program goals. Historically, the Water Utilities sought Council approval for
changes, and Light and Power handled their revisions administratively. Natural Resources takes
changes to Council through the Air Quality Action Plan update. In the future, as directed by the
Electric Energy Supply Policy and the Water Supply and Demand Management Policy,the Utilities
may identify additional items appropriate for loans for the purpose of energy and water
conservation. With this resolution, the City Manager will approve all the revisions to the loan
program.
RESOLUTION 2003-115
OF THE COUNCIL OF THE CITY OF FORT COLLINS
AUTHORIZING THE CITY MANAGER
TO IMPLEMENT A ZERO INTEREST LOAN PROGRAM
WHEREAS, in 1980, the City first provided loans to the public for air quality
improvements and energy conservation from Community Development Block Grant funds,
through a program known as the Zero Interest Loans for Conservation Help, or "ZILCH"
program; and
WHEREAS, in 1990, the City Council adopted Resolution 90-147, directing staff to
investigate the feasibility of a zero interest loan program for those customers with an inferior or
corroded water service line that should be replaced at the time of installation of a water meter
pit; and
WHEREAS, in March 1991, the Council adopted Resolution 91-37, approving a zero
interest loan program for water service line replacement, and approved described procedures for
the operation of that program; and
WHEREAS, at that time, the Council determined that such a zero interest loan program
would be in the best interests of the citizens of Fort Collins, and would serve a valuable public
purpose; and
WHEREAS, in July 1991, the Council adopted Ordinance No. 84, 1991, authorizing
$100,000 in funding from Light and Power contingency funds and ZILCH loan funds originally
provided from federal revenue sharing, for electric energy-related loans to encourage energy
conservation and air quality improvement practices; and
WHEREAS, the Council at that time determined that the use of Light and Power funds
for such purposes would be beneficial to Light and Power ratepayers, and further determined that
the use of City funds for zero interest loan programs for energy conservation and air quality
improvements would be in the best interests of the citizens of Fort Collins and would serve a
valid and valuable public purpose of direct benefit to the City; and
WHEREAS, in March 1993, the Council adopted Resolution 93-37, approving a zero
interest loan program for the purpose of water conservation through the use of more efficient
plumbing and fixtures, approved procedures for that program and further determined that such a
program would serve a valuable public purpose; and
WHEREAS, Resolution 93-37 authorized the Director of the Water and Wastewater
Utility to make minor procedural adjustments to the water conservation loan program, as
necessary to effectively administer the program; and
WHEREAS, the ZILCH program, as expanded through the aforementioned Council
actions, has been administered by the Utility, in cooperation with the Natural Resources
Department; and
WHEREAS, over time, the types of improvements that most effectively advance the
ZILCH program objectives of increasing energy and water conservation and improving air
quality have changed, due to evolving technology; and
WHEREAS, staff has reviewed the current ZILCH program scope and objectives, and
has recommended that the Council modify the program goals and range of improvements
eligible for grant funding through the program; and
WHEREAS, staff has further recommended that the City Manager have the responsibility
to the develop, implement, and revise, as appropriate, the administrative procedures for the
operation of the ZILCH program, notwithstanding the Council's prior approval of program
guidelines in 1991 and 1993; and
WHEREAS, on March 16, 1993, the City Council adopted Resolution 93-45, approving
an Air Quality Policy Plan for incorporation into the City's Comprehensive Plan, which has
since been updated and approved by the Council as Principle ENV-1 and Policy ENV-1.1 of the
City Plan Principles and Policies (the "Air Quality Policy Plan"); and
WHEREAS, objectives and strategies for implementing the Air Quality Policy Plan were
most recently established when the City Council approved an updated Air Quality Action Plan
with its adoption of Resolution 2001-004, on March 20, 2001; and
WHEREAS, on March 25, 2003, the City Council adopted Resolution 2003-038,
approving and adopting the Electric Energy Supply Policy, regarding electric rates and
reliability, demand side management, and wind power; and
WHEREAS, on September 16, 2003, the City Council adopted Resolution 2003-104,
adopting a Water Supply and Demand Management Policy; and
WHEREAS, the Council desires to acknowledge, by its adoption of this Resolution, the
City Manager's authority to administer the ZILCH program, and to establish the scope of the
ZILCH program, in furtherance of the above-referenced Council-adopted plans and policies, as
they may, from time to time, be amended or replaced by the City Council (the "Policies").
NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF
FORT COLLINS as follows:
Section 1. That the Council hereby finds that a Zero Interest Loan Program ("ZILCH
Program"), administered by the City Manager to assist City Utilities residential customers to
make improvements, repairs, replacements and other equipment or capital purchases and
installations related to energy, water, and wastewater efficiency and consumption, or related to
reduction of wood-smoke and other residential air pollutants, consistent with the above-
referenced Policies, will serve said important governmental and utility purposes and objectives.
Section 2. That the City Manager is hereby authorized to implement and administer
said ZILCH Program, consistent with the Policies and subject to the appropriation of funds
necessary therefor, provided that any funds used for the Program from any Utility enterprise or
other dedicated fund shall be segregated and used to provide assistance for improvements or
expenditures related to the general purposes of said underlying fund.
Passed and adopted at a regular meeting of the City Council held this 21st day of
October, A.D. 2003.
Mayor
ATTEST:
City Clerk