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HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 04/06/2010 - FIRST READING OF ORDINANCE NO. 035, 2010 APPROPRIA DATE: April 6, 2010 STAFF: Patty Bigner AGENDA ITEM SUMMARY Bill Freeman FORT COLLINSCOUNCIL SUBJECT First Reading of Ordinance No. 035, 2010 Appropriating Unanticipated Grant Revenue and Appropriating Additional Unanticipated Revenues in the Lightand Power Fund forthe Northern Colorado ENERGY STAR New Homes Program and Authorizing the Transfer of Matching Funds Previously Appropriated in the Light and Power Operating Budget. EXECUTIVE SUMMARY This Ordinance appropriates grant funds received from the State of Colorado's Governor's Energy Office. The grant totals $50,000 for the continuing development and implementation of the ENERGY STAR New Homes Program in the Northern Colorado region. The grant requires a$15,000 match from the Utilities and a$41,000 match from other regional program partners. The Ordinance also transfers the Utilities $15,000 match from existing Light and Power operating appropriations. In addition, the Ordinance appropriates a total of$41,000 pledged by the program partners in 2010 and a net of$44,381 previously received from the program partners in 2009. BACKGROUND/ DISCUSSION The ENERGY STAR New Homes Program is a national program to promote energy efficiency in new home design and construction. The state implementation of ENERGY STAR New Homes is managed by the State of Colorado Governor's Energy Office (GEO) as the Colorado ENERGY STAR Homes program. In turn, GEO disburses competitive funding, via matching grants, to regional partners. The program in Northern Colorado is coordinated by the City of Fort Collins Utilities and is in direct support of the efficiency goals of the City's 2009 Energy Policy. The Utilities works closely with other regional partners in this effort. These partners include other cities,towns, utilities and Larimer County. Several of these partners contribute funding. (See the Northern Colorado ENERGY STAR Homes web site at www.nocoenergystarhomes.org.) Previously,the Utilities received two GEO grants in support of this effort: $25,000 in 2008 and$50,000 in 2009. These grant funds were appropriated in the years they were awarded, along with Utilities' matches totaling $40,000. The 2009 grant also required matches from regional partners which have not been previously appropriated. In 2009, the Utilities received regional partner contributions from the City of Longmont ($10,000), Platte River Power Authority ($15,000), Poudre Valley REA ($10,000), United Power ($10,000), Xcel ($10,881), and Berthoud ($1,000). The Ordinance appropriates$46,000 from the partner contributions received in 2009. (Xcel Energy also directly paid for $4,119 of program expenses, outside of the City's financial system.) A total of$56,881 was contributed by these partners in 2009; however, the GEO grant revenues totaled $12,500 less than anticipated based on actual 2009 program expenses. Therefore, the Ordinance appropriates a net of$44,381 from the partner contributions received in 2009. A third GEO grant for this program was awarded in 2010 for$50,000(for the period 2010 and first six months of 2011). The 2010 grant requires matching funds of which$15,000 will be transferred from existing appropriations for energy services programs in the Light and Power Fund and $41,000 in matches from other community partners in the program. The partners who are committing funds in 2010 include the City of Longmont($15,000), Platte River Power Authority ($15,000), Poudre Valley REA ($10,000), and Windsor ($1,000). Xcel Energy is also participating in the program in 2010; however, they will be paying vendors directly and the funds will not flow through the City and so Xcel's contributions do not require appropriation. For the 2010 grant project,the Ordinance appropriates the$50,000 in grant funds, $41,000 in 2010 partner contributions and authorizes the transfer of$15,000 in existing appropriations from the Light and Power Fund's operating budget into the 2010 grant project. April 6 2010 -2- ITEM 11 FINANCIAL IMPACT The Ordinance appropriates unanticipated revenues totaling $135,381: 2010 GEO Grant $50,000 2010 Partner Contributions $41,000 2009 Partner Contributions $44,381 The Ordinance also authorizes the transfer of$15,000 from the existing Light and Power appropriations. These funds were originally budgeted for energy services and are intended to be used for this purpose. SUSTAINABILITY: ECONOMIC, ENVIRONMENTAL AND SOCIAL IMPACTS The Northern Colorado ENERGY STAR Homes program brings grant funds to the community, matched by a regional effort to provide a consistent energy efficiency standard to new home construction. Homes built to the ENERGY STAR standard reduce utility costs for citizens,reduce carbon emissions related to electricity and natural gas use and reduce indoor water use. These homes are also more comfortable, more durable and provide improved indoor environmental quality. The program offers brings true sustainability results, where results simultaneously provide economic, environmental and social benefits. STAFF RECOMMENDATION Staff recommends adoption of the Ordinance on First Reading. BOARD / COMMISSION RECOMMENDATION At its March 10, 2010 meeting, The Electric Board voted 4-1 to recommend approval of the appropriations. ATTACHMENTS 1. Excerpt from draft Electric Board minutes March 10, 2010 ATTACHMENT 1 Excerpt from Unapproved Electric Board Minutes,March 10, 2010 Northern Colorado Energy Star Grant Appropriation Energy Services Manager John Phelan provided information on a grant appropriation and partner funds for the Northern Colorado Energy Star® Program. The Light and Power Fund has received a$50,000 grant from the Governor's Energy Office for this program, and our required match is $15,000. In addition, partner matches total $85,381 from last year and this year. The program is intended to promote the Energy Star label on new home construction, and the funding spans through 2010 and the first half of 2011. Board members asked questions about how this program relates to the electric utility and how the funds will be spent. Mr. Phelan responded that Energy Star® homes are more efficient. The program is one foundational piece of our energy efficiency education. Utilities did a past study on code compliance in the community. The Energy Star Program has developed into a regional collaborative partnership on efficiency efforts. Funds will be spent to hire a program coordinator to lessen the impact of the program on existing staff and to create marketing materials for builders and consumers. A web site component offers a map to show where these homes are being built and which builders are participating. Market data will be collected on participation levels. Eventually, the program is intended to be led by an organization of the funding partners and industry, not by Utilities. Utilities had traditionally been the City group to promote "above code" building. This aligns with the Energy Policy goals of improving the built environment. Realtors are part of our target educational audience. Board Member Graham moved the Electric Board recommends that City Council approve the appropriation of the$50,000 in grant funds and a total of $85,381 in partner contributions. The Board further recommends that City Council authorize the transfer of$15,000 in existing appropriations from the operating budget to the grant project. Vice Chairperson Yurash seconded the motion. Vote on the motion: Four in favor, one against. Board Member Barnish noted his reason for voting against the motion: Our energy services program funding is drawn from our ratepayers, and it is intended to be spent specifically for electric energy efficiency. He doesn't know where the $15,000 will be spent specifically. 1 ORDINANCE NO. 035, 2010 OF THE COUNCIL OF THE CITY OF FORT COLLINS APPROPRIATING UNANTICIPATED GRANT REVENUE AND APPROPRIATING ADDITIONAL UNANTICIPATED REVENUES IN THE LIGHT AND POWER FUND FOR THE NORTHERN COLORADO ENERGY STAR NEW HOMES PROGRAM AND AUTHORIZING THE TRANSFER OF MATCHING FUNDS PREVIOUSLY APPROPRIATED IN THE LIGHT AND POWER OPERATING BUDGET WHEREAS, the State of Colorado's Governor's Energy Office (the "GEO") has awarded to the City of Fort Collins Utilities Energy Service program a grant in the amount of$50,000, (the "Grant"); and WHEREAS, the City will use this $50,000 to promote the ENERGY STAR New Homes Program; and WHEREAS, the Grant requires a cash match from the City in the amount of$15,000 and these funds are currently available from existing 2010 appropriations in the Light and Power Fund; and WHEREAS, the Grant requires an additional cash match from other regional program partners in the amount of$41,000 in 2010; and WHEREAS, a net of$44,381, which was previously received from the program partners in 2009, will be appropriated; and WHEREAS, the programs funded by the Grant are designed to aid the City in reaching Energy Policy goals for energy conservation and renewable energy sources as approved by the City Council in Resolution 2003-008; and WHEREAS, Article V, Section 9, of the City 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 the fiscal year, does 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 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 City 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, City staff has determined that the appropriation of the Grant as described herein 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 the fiscal year; and NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows: Section 1. That there is hereby appropriated from unanticipated revenue in the Light and Power Fund the sum of FIFTY THOUSAND DOLLARS ($50,000) for expenditure in the Light and Power Fund for the Northern Colorado ENERGY STAR New Homes Program. Section 2. That the unexpended appropriated amount of FIFTEEN THOUSAND DOLLARS ($15,000) is hereby authorized for transfer from the Light and Power operating budget to the Light and Power grant projects for the Northern Colorado ENERGY STAR New Homes Program. Section 3. That there is hereby appropriated from unanticipated revenue in the Light and Power Fund the sum of FORTY ONE THOUSAND DOLLARS ($41,000) for expenditure in the Light and Power Fund for the Northern Colorado ENERGY STAR New Homes Program. Section 4. That there is hereby appropriated from prior year reserves in the Light and Power Fund the sum of FORTY FOUR THOUSAND THREE HUNDRED EIGHTY ONE DOLLARS ($44,381) for expenditure in the Light and Power Fund for the Northern Colorado ENERGY STAR New Homes Program. Introduced, considered favorably on first reading, and ordered published this 6th day of April, A.D. 2010, and to be presented for final passage on the 20th day of April, A.D. 2010. Mayor ATTEST: City Clerk -2- Passed and adopted on final reading on the 20th day of April, A.D. 2010. Mayor ATTEST: City Clerk -3-