HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 09/07/2004 - SECOND READING OF ORDINANCE NO. 128, 2004, APPROPR ITEM NUMBER: 8
AGENDA ITEM SUMMARY DATE: September 7, 2004
FORT COLLINS CITY COUNCIL STAFF: Michael Smith
Gary Schroeder/Ken Mannon
SUBJECT
Second Reading of Ordinance No. 128, 2004, Appropriating Unanticipated Revenue and Prior
Year Reserves in the Light and Power Fund and Authorizing the Transfer of Existing
Appropriations in the Equipment Fund for the Purpose of Purchasing Hydrogen Fueling
Equipment and Infrastructure at the Transfort Alternative Fueling Station.
RECOMMENDATION
Staff recommends adoption of the Ordinance on Second Reading.
EXECUTIVE SUMMARY
This Ordinance, which was adopted 6-0 (Councilmember Kastein was absent) on First Reading
on August 17, 2004, authorizes a $35,000 appropriation of prior year reserves in the Light and
Power Fund for purchase of hydrogen fueling equipment and infrastructure for the Transfort
Alternative Fueling Station.
ORDINANCE NO. 128, 2004
OF THE COUNCIL OF THE CITY OF FORT COLLINS
APPROPRIATING UNANTICIPATED REVENUE AND PRIOR YEAR RESERVES IN THE
LIGHT AND POWER FUND AND AUTHORIZING THE TRANSFER OF EXISTING
APPROPRIATIONS IN THE EQUIPMENT FUND FOR THE PURPOSE OF PURCHASING
HYDROGEN FUELING EQUIPMENT AND INFRASTRUCTURE AT THE TRANSFORT
ALTERNATIVE FUELING STATION
WHEREAS,on March 19,2002,the City Council adopted Resolution 2002-027,establishing
a policy to implement hydrogen-related projects within the City; and
WHEREAS, the Colorado Governor's Office of Energy Management and Conservation
agreed to donate$210,000 worth of fueling equipment and funds, to be used with other City funds,
to add a Hythane®/Hydrogen fueling appliance and related infrastructure to the fueling facility at
the City's Transfort site on Trilby Road(Transfort Alternative Fueling Station); and
WHEREAS,Hythane(a mixture of natural gas and hydrogen),an alternative vehicle fueling
source, can be used directly in the City vehicles designed to operate on compressed natural gas
("CNG"); and
WHEREAS, the use of Hythane typically results in a 40-50% reduction in emissions over
the use of CNG; and
WHEREAS,pure hydrogen can also be dispensed from the proposed Hythane®/Hydrogen
appliances allowing the City to purchase hydrogen vehicles in the future; and
WHEREAS, the estimated cost of the Hythane®/Hydrogen appliances and related
infrastructure improvements is $452,000, with available funding identified as follows:
Colorado Governor's Office of Energy Management and
Conservation- Equipment Donation $ 210,000
City's Light &Power Fund-Prior Year Reserves $ 35,000
City's Equipment Fund- Existing Appropriations $ 207,000
Total $ 452,000
WHEREAS, Article V, Section 9, of the Charter of the City of Fort Collins ("Charter")
permits the City Council 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, City staff has determined that the appropriation of the donated equipment and
funds, as described herein, will not cause the total amount appropriated in the relevant funds to
exceed the current estimate of actual and anticipated revenues to be received during the fiscal year;
and
WHEREAS,Article V,Section 9,of the 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, notwithstanding that such reserves were not previously
appropriated; and
WHEREAS,Article V, Section 10,of the Charter authorizes the City Council to transfer by
ordinance any unexpended and unencumbered amount or portion thereof from one fund or capital
project to another fund or capital project,provided that the purpose for which the transferred funds
are to be expended remains unchanged; and
WHEREAS,it is the desire of the Council to authorize the acceptance of the donation of the
hydrogen fueling equipment and funds for a total value of$210,000 from the Colorado Governor's
Office of Energy Management and Conservation, appropriate the sum of$35,000 from prior year
reserves in the Light & Power Fund for transfer to the City's Equipment Fund - Transfort
Alternative Fueling Station project, for appropriation therein, and authorize the transfer of existing
appropriations,totaling$207,000,from the City's Equipment Fund operating budget to the Transfort
Alternative Fueling Station project, within the Equipment Fund, to be used to install Hythaneg/
Hydrogen fueling appliances and related infrastructure at the Transfort Alternative Fueling Station;
and
NOW, THEREFORE,BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT
COLLINS as follows:
Section 1. That there is hereby appropriated for expenditure from unanticipated revenues
in the Equipment Fund-Transfort Alternative Fueling Station project the sum of TWO HUNDRED
TEN THOUSAND DOLLARS ($210,000) to be used to install Hythane®/Hydrogen fueling
appliances and related infrastructure at the Transfort Alternative Fueling Station.
Section 2. That there is hereby appropriated for expenditure from prior year reserves in the
Light & Power Fund for transfer to the Equipment Fund - Transfort Alternative Fueling Station
project, and appropriated therein, the sum of THIRTY-FIVE THOUSAND DOLLARS ($35,000)
to be used to install Hythane®/Hydrogen fueling appliances and related infrastructure at the
Transfort Alternative Fueling Station.
Section 3. That the unexpended appropriated amount of TWO HUNDRED SEVEN
THOUSAND DOLLARS ($207,000) is hereby authorized for transfer from the Equipment Fund
operations budget to the Equipment Fund-Transfort Alternative Fueling Station project to be used
to install Hythane® / Hydrogen fueling appliances and related infrastructure at the Transfort
Alternative Fueling Station.
Introduced, considered favorably on first reading, and ordered published this 17th day of
August, A.D. 2004, and to be presented for final passage on the 7th day of September, A.D. 2004.
Mayor
ATTEST:
City Clerk
Passed and adopted on final reading this 7th day of September, A.D. 2004.
Mayor
ATTEST:
City Clerk
ITEM NUMBER: 12
AGENDA ITEM SUMMARY DATE: August 17, 2004
FORT COLLINS CITY COUNCIL STAFF: Michael Smith
Gary Schroeder/Ken Mannon
SUBJECT
First Reading of Ordinance No. 128, 2004, Appropriating Unanticipated Revenue and Prior Year
Reserves in the Light and Power Fund and Authorizing the Transfer of Existing Appropriations
in the Equipment Fund fort rpo en Fueling Equipment and
Infrastructure at the Transfort tema Fueh ti
RECOMMENDATION
Staff recommends adoption of the Ordinance on First Reading.
FINANCIAL IMPACT
The $35,000 requested from rye ery in a ower Fund represents 4% cost
share for the total Transfort emativ uelin S ' Gr of $286,266 and $210,000 will
cover 58% of the total projec ost. am f ds neede o complete the project will come
from existing appropriations tota g $20 , from a City s quipment Fund.
EXECUTIVE SUMMARY
This Ordinance authorizes a $35,000 appropriation of prior year reserves in the Light and Power
Fund for purchase of hydrogen fueling equipment and infrastructure for the Transfort Alternative
Fueling Station. In addition, this Ordinance authorizes a ropriation of $210,000 in equipment
and funds being donated by e I do o fic of Energy Management and
Conservation to the Transf Alters ve F i tion. his Ordinance also authorizes
transfer of $207,000 from t Equi t F d erations dget to the Equipment Fund —
Transfort Alternative Fueling St
n.
BACKGROUND
In January of 2001, City Manager, John Fischbach created the Hydrogen Task Force ("HTF") to
explore the City's potential use of hydrogen as a power supply. On August 27, 2001, the HTF
submitted a report titled "Report of the City of Fort Collins Hydrogen Task Force" with its
findings and recommendations for hydrogen projects.
The Report led to Council's adoption in March, 2002, of Resolution 2002-027, Establishing a
Policy to Implement Hydrogen-Related Projects Within the City
August 17, 2004 -2- Item No. 12
(http://fcaov.comZudlities/htf.phpl. After further staff research into potential projects and grant
and partnership opportunities, a hydrogen update report was submitted, dated October 28, 2003,
with more specific findings and recommendations.
Shortly after release of the updated report, the Colorado Governor's Office of Energy
Management and Conservation ("OEMC") agreed to donate to the City $210,000 for the
purchase of an electrolyzer, which generates hydrogen by using electricity to split water into
hydrogen and oxygen, and other fueling equipment. As a result, the City will be able to add a
Hythane®/Hydrogen fueling plant to the previously planned Transfort Alternative Fueling
Station ("TAFS"). Hythane is re "Fall"
ra dr n.
4f c�
The TAFS gives the City a s 'd start hydr ` e .nfrastruc e. Hythane can be used directly
in vehicles designed to opera co d ral g NG") which the City already
owns. The use of Hythane in such vehicles typically results in a 40%-50% reduction is
emissions over CNG. The Hythane/Hydrogen fueling plant can also dispense pure hydrogen.
This flexibility presents several opportunities: (1) purchase a transitional pure hydrogen vehicle,
such as the hydrogen hybrid to be offered to fleets by Ford; (2) attract vehicle demonstrations
with the large automakers which are currently testing fuel cell vehicles in various climates; (3)
establishes a "springboard" from which to develop other hydrogen projects.
The Hythane/Hydrogen fueling plant will utilize a relatively small (25 kW) electrolyzer to
produce hydrogen. Utilities w' a op u y 1 re about the operation of these
devices, which are likely tokorne'
ely i o c mers as the hydrogen economy
develops. Several manufactucu a ha p totype el trolyzers designed to be installed
in residential garages and woe Uti pow o fuel ydrogen vehicle overnight. With
these future applications in mind, Utilities staff will assist with implementing electrolyzer
controls to prevent the electrolyzer from operating during peak periods. This will reduce
operating costs as well as impacts on the distribution grid.
Another consideration with the electrolyzer is, when coupled with a fuel cell or engine generator,
the electrolyzer becomes a component of an electrical storage system. This is valuable in
managing peak periods of electrical usage as electricity shaving and storage of renewably-
generated electricity from inte so su of ec ' systems and wind generators
can be accomplished. Data ere r the a of r or this project will be valuable
in evaluating these types off re appli lions.
City policy that supports this project is as follows:
• This is a pilot project in support of Resolution 2002-027 Establishing a
Policy to Implement Hydrogen-related Projects within the City.
• This project is supported by the 2003-2005 Council Policy Agenda,
Adopted September 2, 2003, Theme 6: Environment, Target 1: Develop a
comprehensive Energy Policy for City operations and the community,
Objective d. Study and implement additional ways to reduce
environmental impact of City operations. It is also supported by Target 4:
Enhance air quality policies, Objective c. Continue to evaluate sources of
clean energy, especially hydrogen.
August 17, 2004 -3- Item No. 12
• This project is consistent with Fort Collins Local Action Plan to Reduce
Greenhouse Gas Emissions, adopted by Resolution 99-137 and has the
potential to substantially reduce local emissions of City buses and fleet
vehicles and educate local safety officials regarding hydrogen.
In 1997, Fort Collins City Council adopted Resolution 97-051, outlining
the City's role as energy provider, user, and educator. This resolution
states: "That as a user of energy, ... The City shall also regularly evaluate
the latest technologies utilizing alternative fuels for transportation and, to
the greatest extWrPrV4tic oloes to the operation of
City vehicles i rder tb A y ici ansportation."
ATTACHMENTS
Resolution 2002-027