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Home My WebLink AboutCOUNCIL - AGENDA ITEM - 04/20/2010 - SECOND READING OF ORDINANCE NO. 035, 2010 APPROPRI DATE: April 20, 2010 STAFF: Patty Bigner Bill Freeman Second Reading of Ordinance No.035,2010 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. EXECUTIVE SUMMARY This Ordinance, unanimously adopted on First Reading on April 6, 2010, 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. STAFF RECOMMENDATION Staff recommends adoption of the Ordinance on Second Reading. ATTACHMENTS 1. Copy of First Reading Agenda Item Summary-April 6, 2010 (w/o attachments) ATTACHMENT 1 DATE: April 6, 2010 AGENDA ITEM SUMMARY STAFF: Patty Bigner _ Bill Freeman T COLLINS CITY COUNCIL First Reading of Ordinance No. 035, 2010 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. EXECUTIVE SUMMARY Ff1 \\ 17 This Ordinance appropriates grant fundsreceived4rom the State of Colorado's Governor's Energy Office. The grant met$50,000 for the continuing developmt and-implementation of theIENERGY 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=toapr9mote6hergy efficiency in new home design and construction. The state implementation of,ENERGY�STAR New Homes is managed by the State of Colorado Governors Energy Office (GEO) aslthe Colorado ENERGYLSTAR Homes program. In turn, GEO disburses competitive funding, via matching grants, toy gio\al p ners0 The program in Northern Colorado is coordinated by the City of Fort Collins Utilities and is indirect 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) UnitedPower ($10,000), Xcel ($10,881), and Berthoud ($1,000). The Ordinance appropriates$46,000 fromhe partner�contnbution10s'received?in 2009. (Xcel Energy also directly paid for $4,119 of program expenses, outside of the City's financiallsyster,M) Moral of$56,881 was contributed by these partners in 2009; however, the GEOAgrant revenues totaled $12,500 less than anticipated based on actual 2009 program expenses. Therefore, the OOrdi`na�a appr`ates anet of$44,3811 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 t`ansfer of$15,000 in existing appropriations from the Light and Power Fund's operating budget into the 2010 grant prroojeecct. 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 andare-intended-to-be used for this purpose. n (n) SUSTAINABILITY: ECONOMIC;ENNIRONMENTAG 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 indoorwater 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 %J 17 II 11 II � Ll Staff recommends adoption of the O'rtlin`a�nfce on�Fir��st��adi�g 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 tes;March 10,'2010 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 2gdMy of April, A.D. 2010. / 4 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-