HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 04/05/2016 - FIRST READING OF ORDINANCE NO, 046, 2016, APPROPRIAgenda Item 21
Item # 21 Page 1
AGENDA ITEM SUMMARY April 5, 2016
City Council
STAFF
Lindsay Ex, Environmental Program Manager
Jeff Mihelich, Deputy City Manager
Jackie Kozak-Thiel, Chief Sustainabillity Officer
Mike Beckstead, Chief Financial Officer
Kevin Gertig, Utilities Executive Director
Lucinda Smith, Environmental Sustainability Director
SUBJECT
First Reading of Ordinance No, 046, 2016, Appropriating Prior Year Reserves in the General Fund and the
Light and Power Fund and Transferring Appropriations from the Light and Power Fund to the General Fund for
2016 Projects Associated with the 2020 Climate Action Plan (CAP) Strategic Plan.
EXECUTIVE SUMMARY
The purpose of this item is to appropriate $230,510 from the General Fund and $245,483 from the Light and
Power Fund to initiate four projects in the CAP that have been identified for immediate action and investment
based on guidance provided by the City Council.
STAFF RECOMMENDATION
Staff recommends adoption of the Ordinance on First Reading.
BACKGROUND / DISCUSSION
In 2015, City Council adopted updated community greenhouse gas goals:
20% below 2005 levels by 2020,
80% below 2005 by 2030, and
Carbon neutrality by the year 2050
Staff has developed an implementation plan to include an internal CAP Executive Team, Core Team, and
Strategic Initiative Teams as well as an external Community Advisory Committee, based on the accelerated
goals of the CAP. During the March 10, 2016 Council Work Session, staff identified seven initiatives that could
be invested in immediately; four of these seven are included within this agenda item. The remaining three are
currently being vetted further and will be brought forward to Council within the next two months.
Item Initiative ($,000)
2016 Capital & O&M
Ongoing Annual
Capital & O&M
General
Fund
Light and
Power
Total
1 Building Energy Disclosure and Scoring $51,388 $51,388 $89,066
2 CAP Program Support $55,510 $129,095 $184,605 $333,153
3 CAP Pilot Projects/ Innovation Fund $125,000 $65,000 $190,000 N/A
4 Biomass Feasibility Study $50,000 $50,000 N/A
Totals $230,510 $245,483 $475,993 $422,219
Agenda Item 21
Item # 21 Page 2
Below is a summary of the four projects that were prioritized to receive funding in 2016 (see Attachment 2 for
full project descriptions):
1. Building Energy Disclosure and Scoring: $51K ($89K Ongoing)
2020 Impact: 2,000 CO2e Tons (0.4%)
This initiative provides one staff position to lead the development of a building energy disclosure and
scoring program for Fort Collins. Similar to the purchase of a new car and taking into account the
miles per gallon (mpg) that a car is rated for, this initiative is designed to make energy efficiency part of
the decision-making process in the purchase, rental, or lease of homes and commercial buildings.
Benchmarking also helps building owners to monitor the performance of building systems over time
and make prudent investment decisions in ongoing maintenance and upgrades. The program will
entail energy benchmarking and disclosure for commercial buildings and energy scoring for homes.
Though this initiative represents a small portion of the necessary impact toward the CAP 2020 goal
(0.4%), it will be an important driver for significant emissions reductions by 2030. This position will
create a pathway to the long-term impacts that building energy disclosure and scoring will have on Fort
Collins’ greenhouse gas (GHG) emissions. The initiative is especially impactful because it will
eventually include most of the existing and future building stock due to the normal turnover in
ownership. In addition, Fort Collins has been invited to apply to be one of the next 10 cities funded by
the City Energy Project (www.cityenergyproject.org <http://www.cityenergyproject.org>), which is a
privately-funded initiative that, if selected, would match the City’s investment in this initiative by up to
2:1.
2. CAP Program Support: $185K ($333K Ongoing)
2020 Impact: Enabling Initiatives
This package includes three positions critical to the success of the City’s ability to achieve its Climate
Action Plan goals. Each of these positions has been vetted by the CAP Executive Team (Deputy City
Manager, Chief Financial Officer, Utilities Executive Director, Chief Sustainability Officer, and
Planning, Development, and Transportation Director) and has been determined to be high priority.
The three positions are as follows:
CAP Program Manager - Provides the long term planning and implementation of CAP, the
accelerated pace to meet goals, and level of depth and breadth of technical information and
public and private sector engagement demands a dedicated resource to coordinate.
Coordination includes 70 staff members and 30 citizens engaged to achieve the near-term and
long-range Climate Action Plan goals. Support of CAP Executive Team ensures high level
engagement in the organization as well as vertical integration. Builds bridges with internal and
community partners, raising awareness and increasing involvement in climate action, and
proactively collaborates with the Community Advisory Committee and regional, state, and
federal organizations to advance climate action.
Sustainability Services Financial Analyst - Provides necessary skills to fully vet CAP and all
SSA initiatives from a business planning perspective, including annual cash flow assumptions,
levels of investments required from public and private sectors, ongoing costs, savings
associated with the initiatives, and marketing plans. Key outcomes that will also take place as
a result of this position will be the performance analysis of current and future programs and
financial vetting of all initiatives. This position fills an important skills gap in Sustainability and
in support of CAP.
Smart Grid and Systems Operation Manager - The prime outcome is the integration of the
renewable and distributed supply resources into the electric delivery system in a way that is
both safe and reliable. This initiative positions the Utilities to operate a distribution system with
large amounts of Distributed Energy Resources (DERs) such as solar PV. In addition, it
provides strategic and tactical leadership will be achieved for the Fort Collins Energy’s Smart
Grid and System Operations to ensure the delivery system operates safely and reliably.
Agenda Item 21
Item # 21 Page 3
Finally, the initiative provides for the identification and evaluation of existing and emerging
technologies in the areas of advanced metering, distribution automation, grid communication
networks, and advanced control center functions.
3. CAP Pilot Projects/Innovation Fund $190K (Ongoing funding will be vetted through the 2017-
2018 BFO Cycle)
2020 Impact: Enabling Initiatives
The purpose of the Climate Action Plan Innovation/Pilot Projects Fund is to foster locally innovative
and relevant approaches to objectives outlined in the City’s CAP goals. The aim of the program is to
lower barriers to funding important projects not accounted for in a department’s annual budget, to
allow the City to act nimbly when presented with CAP-related opportunities (i.e., cash match for
grants), and to test focused concepts in the community that might later be replicated throughout the
city. Initially, this fund would be open to projects developed within City departments and through
collaborations with other agencies. In the future, it could be extended to projects from residents and
the local business community.
In 2016, four initiatives have been prioritized to date to be included within the Pilot Projects/Innovation
Fund:
HEAL ($60K): A 2016 pilot of the HEAL (Home Energy Affordability Loan) program initiated by
the Clinton Climate Initiative and Vermont Energy Investment Corporation, in advance of a full
launch in 2017-2018.
Carbon Sequestration Analysis ($75K): An analysis to better understand the impact that
sequestering carbon on a local basis can have on the City’s greenhouse gas emission
reduction goals. Land and urban forest management can offset GHG emissions by increasing
capacity for carbon uptake and storage in biomass, wood products, and soils. This plan would
entail an interdisciplinary feasibility study, in conjunction with CSU, to set goals around carbon
sequestration within the current GMA boundary of the City of Fort Collins. It could be
expanded in the future to study the Fort Collins watershed and collaborate with regional
partners.
CAP Innovation Summit ($25K): A summit that will target technical experts and engage other
jurisdictions to identify private sector and partnership innovation opportunities for CAP and
exchange municipal best practices on reaching shared goals. Funding could also be used to
design a competition to incent the private sector to develop solutions to the outcomes we want
to achieve, as discussed during the Council Work Session.
Electrify Commercial Lawn and Garden Equipment ($30K): This seed funding will accelerate
the purchase and use of alternative fuel (i.e., electric or propane) commercial lawn and garden
equipment by the City (e.g., Parks, Forestry, and Cemetery) to determine which are the best
products to incorporate into the City’s fleet in advance of a full budget offer in the 2017-2018
budget process. This funding will also lay the groundwork for adding requirements or
incentives for the use of alternative fuel commercial lawn and garden equipment for work
contracted by the City. This initiative has significant co-benefits, e.g., ozone reduction
potential.
4. Biomass Burner Feasibility Study: $50K (One-time funding)
2020 Impact: Enabling Initiative for Biomass Burner - 2,000 CO2e Tons (0.4%)
Biomass burners provide both energy from a renewable source (wood) and a means for disposing of a
high-volume, organic material that should be diverted from landfills to reduce greenhouse gas
emissions associated with these materials. Being a relatively simple and proven waste-to-energy
technology, several biomass burners are currently producing energy around our region and, on
average, have an ROI (return on investment) of approximately 10 years.
This study sets the stage to determine if a biomass burner is appropriate for our community, where it
would be most useful, and at what scale. The project is a collaboration between Sustainability
Agenda Item 21
Item # 21 Page 4
Services, Parks, and Operation Services, with the assistance of the US Forest Service and Colorado
State Forest Service. The Forest Service will very likely be able to provide matching or grant funding
for a portion of the study costs, which would lower this request, which also includes the cost of an
engineering, design, and operations plan for a resulting facility. Opportunities to partner with a nearby
business or institution in need of steady heat or hot water will be pursued.
A key driver of this study is the recognition that the inevitable Emerald Ash Borer (EAB) beetle
infestation will likely lead to the death of the vast majority of Fort Collins’ 70,000+ ash trees which may
end up flooding landfills without a strategic disposal management plan, and if determined to be
feasible, this technology could also be utilized after the EAB die-off for much of the urban wood debris
in the community. If deemed feasible, a biomass burner could reduce up to 2,000 tons of greenhouse
gas emissions in 2020.
CITY FINANCIAL IMPACTS
Investing in these initiatives has a bottom line impact of $475,993 in 2016, with an ongoing commitment of
$422,219 to the City budget. $245,483 of this increase is funded through the Light and Power Fund, whereas
$230,510 is funded through the General Fund. Note that $77,210 of the Light and Power Fund appropriation
will be transferred to the General Fund, as indicated in Section 4 of the Ordinance, for those projects that will
be administered from the General Fund, i.e., CAP Program Manager, SSA Financial Analyst, and the CAP
Pilot Projects/Innovation Fund.
General Fund. The General Fund on-going expenses can be covered through additional revenue in 2017,
while the current estimate of unassigned Fund Balance in the General Fund can support the one-time requests
in 2016.
Light and Power Fund. This Ordinance appropriates $245,483 from the Light & Power Enterprise Fund
reserves. This reserve had an unappropriated balance of $18.4M as stated in the last published
Comprehensive Annual Financial Report for 2014. It is anticipated that this amount will increase in 2015 as
operating income was positive for this Enterprise Fund. The ongoing annual costs for these initiatives of
$324,222 per year represents less than 0.25% of this fund’s 2015 operating revenue.
The projects funded through Light and Power Funding (Building Energy Disclosure and Scoring, CAP Program
Support, and the CAP Pilot Projects/Innovation Fund) are all intended to manage or reduce, at least in part,
peak demand and overall electric energy use through the implementation of the Climate Action Plan and
supporting policies, e.g., the Energy Policy. Funding of a portion of the total cost of these initiatives with Light
and Power Fund Reserves serves electric utility purposes and reflects a proportionate benefit expected to
accrue to Light and Power ratepayers through the acquisition of cost effective demand side resources and by
seeking to manage and minimize overall future capital needs, and resulting rate impacts, that would otherwise
be required to support increasing peak demand and overall electric service loads.
BOARD / COMMISSION RECOMMENDATION
Staff will present this appropriation request to the Energy Board at the next Board meeting on April 7, 2016.
Based on the feedback from the discussion with this Board at the March 3, 2016 Board meeting, staff
anticipates that the Board will be supportive of this request. The Board will be informed of the City Council’s
action on this request and will have an opportunity to communicate any concerns to City Council before
Second Reading of these Ordinances.
In addition to specific outreach with the Energy Board, staff has also reached out to the following Boards on
the Climate Action Plan more generally: Energy Board, Natural Resources Advisory Board, and the Air Quality
Advisory Board.
Agenda Item 21
Item # 21 Page 5
PUBLIC OUTREACH
Staff has reviewed all of the initiatives associated with the 2020 CAP Strategic Plan with the Climate Action
Plan’s Community Advisory Committee. Ongoing public engagement related to the 31 initiatives currently
being evaluated is planned, including a spring open house and workshop with the business community.
ATTACHMENTS
1. Work Session Summary, March 10, 2016 (PDF)
2. Initiative and Project Descriptions (DOCX)
3. Powerpoint presentation (PPTX)
ATTACHMENT 1
1
2016 CLIMATE ACTION PLAN INITIATIVES
Title: Building Energy Disclosure and Scoring
2020 Impact: 2,000 CO2e Tons (0.4%)
Fund: 501 – Light and Power Fund
Total Amount (2016): $51,388
Total Amount (Ongoing ): $89,066
Outcome: Environmental Health Contact: John Phelan
Tony Raeker
FTE Requested: 1.0 FTE
Description: This request is among four offers responding to City Council and City Manager requests for
Climate Action Plan (CAP) initiatives that could be funded in the immediate term. This initiative is in
response to the significance of energy efficiency to meet CAP Goals and direction from Council.
Key Outcomes:
1. Development of short, medium, and long term plans for a building energy disclosure and
scoring program. This initiative entails the development of a building energy scoring and disclosure
program. Similar to the purchase of a new car and taking into account the miles per gallon that a car
is rated for, this initiative will be designed to make energy efficiency part of the decision-making
process in the purchase, rental, or lease of homes and commercial buildings. Benchmarking helps
building owners to monitor the performance of building systems over time and make prudent
investment decisions in ongoing maintenance and upgrades. The program will provide the tools,
structure and process for collecting and disseminating energy performance scores for different
building types. The scores will be based on utility usage data and/or building energy audits or
assessments. Audits will be coordinated with those provided by Utilities and improvements in
building scores will be supported by Utilities efficiency programs. An interdepartmental team will be
convened for program design, implementation, and stakeholder engagement. In addition, active
research will be conducted to stay on top of best practices in this rapidly evolving field.
2. Laying the groundwork for key emissions reductions needed to meet the 2030 target. Though
this initiative represents a small portion of the necessary impact toward the CAP 2020 goal (0.4%), it
will be an important driver for significant emissions reductions by 2030 and 2050. A pathway will be
developed to reach the long-term impacts that building energy disclosure and scoring will have on
Fort Collins’ greenhouse gas (GHG) emissions. The initiative is especially impactful because it will
include most of the existing and future building stock due to the normal turnover in ownership. Over
a time of years to decades, the building energy disclosure and scoring practices would proceed from
voluntary to mandatory, depending on stakeholder and community engagement on this issue.
Incentives for improvements to energy efficiency and education about it are essential elements to
success. The anticipated public benefits are to provide information to incentivize customers to strive
for a higher score that results in efficiency and demand improvements and to document the value of
high performing buildings in the marketplace.
In addition, investing in building energy disclosure supports the City Energy Project, a privately-funded
initiative for which Fort Collins is in the running to be selected. If selected, this initiative would match the
City’s investments up to 2:1 in 2017-2018.
Impact if Position Not Funded:
The strategy would be delayed until resources become available, or
Delay the implementation of the Green Building Roadmap (funded in the 2015-2016 BFO
process) to shift those resources to this initiative, including delay of green building incentive
programs and resource website, as well as strategies for low carbon/green neighborhoods.
Utilities would scale back existing efficiency programs and the development of new programs,
such as the post pilot implementation of Efficiency Works Neighborhoods. This would reduce key
initiatives essential to achieve savings in the residential sector for the 2020 CAP goals.
2
2016 CLIMATE ACTION PLAN INITIATIVES
Title: CAP Program Support
2020 Impact: Enabling Initiatives
Fund: 100 – General Fund
501 – Light and Power Fund
Total Amount (2016): $184,605
Total Amount (Ongoing): $333,153
Outcome: Environmental Health Contact: Lindsay Ex
Andres Gavaldon
Tim McCollough
FTE Requested: 3.0 FTE
Description: This request is among four offers responding to City Council and City Manager requests for
Climate Action Plan (CAP) initiatives that could be funded in the immediate term. In response to the
significance that Fort Collins and City Council has placed on the CAP and the amount of time and
resources needed to accomplish the City’s greenhouse gas (GHG) emissions reduction goals, this offer
includes funding for three support positions for the Climate Action Plan.
1. CAP Program Manager.
Key Outcomes:
The long term planning and implementation of CAP, the accelerated pace to meet goals,
and level of depth and breadth of technical information and public and private sector
engagement demands a dedicated resource to coordinate.
Coordination includes bringing together and directing 70 staff members and 30 citizens
engaged on the Strategic Initiative Teams to achieve the near-term and long-range Climate
Action Plan goals. Support of CAP Executive Team ensures high level engagement in the
organization as well as vertical integration.
Supports deeper integration of climate mitigation and adaptation, and municipal and
community climate action planning.
Builds bridges with internal and community partners, raising awareness and increasing
involvement in climate action, and proactively collaborates with the Community Advisory
Committee and regional, state, and federal organizations to advance climate action.
Allows the Environmental Services Department to have a dedicated division for Climate
Action and for Air Quality. Currently, the Environmental Program Manager splits her time
50/50 between air quality and climate action initiatives. This funding provides resources to
allow dedicated staff leadership for both divisions.
Impact if Position is Not Funded:
Delayed pace/progress of CAP planning and implementation (scale back community
engagement, expand timeline for modeling and vetting initiatives, push back creation and
implementation of a 2020 CAP Strategic Plan initiatives); overall reduced focus on CAP
progress and coordination support for internal and external participation.
Reduced time spent on Air Quality programs (fugitive dust, systematically addressing critical
air quality issues including radon, ozone, oil and gas, etc.), and delayed work on policy
issues such as woodsmoke and Air Quality Plan update.
3
2. SSA Financial Analyst.
Key Outcomes:
Full vetting of CAP initiatives from a business planning perspective, including annual cash
flow assumptions, level of investments required from public and private sectors, ongoing
costs, savings associated with the initiatives, and marketing plans.
Performance analysis of current and future programs.
Fills an important skills gap in Sustainability Services Area and in support of CAP.
Impact if Position is Not Funded:
In-depth (Higher level) financial analysis is already limited due to lack of bandwidth. Without
a dedicated analyst capable of higher level analysis, CAP and SSA projects must rely on the
limited extra capacity available from organizational wide resources. Higher level financial
analysis for CAP and SSA is currently being filled in by Financial Services and has been
limited due to other organizational priorities
More comprehensive understanding and transparency of triple bottom line impacts will not
occur.
3. Smart Grid and System Operation Manager.
Key Outcomes:
Positions the Utilities to operate a distribution system with large amounts of Distributed
Energy Resources (DERs) such as solar PV.
Strategic and tactical leadership will be achieved for the Fort Collins Energy’s Smart Grid
and System Operations to ensure the delivery system operates safely and reliably.
Identification and evaluation of existing and emerging technologies in the areas of advanced
metering, distribution automation, grid communication networks, and advanced control
center functions.
Impact if Position is Not Funded:
A significant portion of our anticipated CO2e reductions come from clean energy connected
at the distribution level. Light & Power is not resourced to plan for that level of distribution
level connected solar PV generation. Without such planning and operational oversight we
run the risk of having load imbalances and overloads throughout the distribution system.
Utilities could outsource this evaluation to outside consultants at a cost factor of 2-4x the
FTE resource requested. However, this position represents a long-term need that will be
ongoing over the next 35 years as the City continually adapts and manages the increased
load of DERs.
4
2016 CLIMATE ACTION PLAN INITIATIVES
Title: CAP Pilot Program and Innovation Fund
2020 Impact: Enabling Initiatives
Fund: 100 – General Fund
501 – Light and Power Fund
Total Amount (2016): $190,000
Total Amount (Ongoing ): N/A
Outcome: Environmental Health Contact: Lindsay Ex
Josh Weinberg
FTE Requested: N/A
Description:
The purpose of the Climate Action Plan Innovation/Pilot Projects Fund is to foster locally innovative and
relevant approaches to objectives outlined in the City’s CAP goals. The aim of the program is to lower
barriers to funding important projects not accounted for in a department’s annual budget, to allow the City
to act nimbly when presented with CAP-related opportunities (i.e., cash match for grants), and to test
focused concepts in the community that might later be replicated throughout the city. Initially, this fund
would be open to projects developed within City departments and through collaborations with other
agencies. In the future, it could be extended to projects from residents and the local business community.
Examples of projects the fund could support include:
HEAL ($60K): A 2016 pilot of the HEAL (Home Energy Affordability Loan) program initiated by
the Clinton Climate Initiative and Vermont Energy Investment Corporation, in advance of a full
launch in 2017-2018 (if funded in the BFO process).
Carbon Sequestration Analysis ($75K): An analysis to better understand the impact that
sequestering carbon on a local basis can have on the City’s greenhouse gas emission reduction
goals. Land and urban forest management can offset GHG emissions by increasing capacity for
carbon uptake and storage in biomass, wood products, and soils. This plan would entail an
interdisciplinary feasibility study, in conjunction with CSU, to set goals around carbon
sequestration within the current GMA boundary of the City of Fort Collins. It could be expanded
in the future to study the Fort Collins watershed and collaborate with regional partners.
CAP Innovation Summit ($25K): A summit that will target technical experts and engage other
jurisdictions to identify private sector and partnership innovation opportunities for CAP and
exchange municipal best practices on reaching shared goals.
Electrify Commercial Lawn and Garden Equipment ($30K): This seed funding will accelerate
the purchase and use of alternative fuel (i.e., electric or propane) commercial lawn and garden
equipment by the City (e.g., Parks, Forestry, and Cemetery) to determine which are the best
products to incorporate into the City’s fleet in advance of a full budget offer in the 2017-2018
budget process. This funding will also lay the groundwork for adding requirements or incentives
for the use of alternative fuel commercial lawn and garden equipment for work contracted by the
City. This initiative has significant co-benefits, e.g., ozone reduction potential.
Other cities have incorporated similar funding tools into their Climate Action Plans. Portland, OR, for
example, uses a Clean Energy Fund focused on making GHG-reducing efforts accessible to households
and building owners throughout the community. Additionally, Minneapolis, MN offers a Community
Innovation Fund available to neighborhood organizations for innovative and scalable projects.
5
2016 CLIMATE ACTION PLAN INITIATIVES
Title: Biomass Burner Feasibility Study
2020 Impact: Enabling Initiative for Biomass Burner - 2,000 CO2e Tons (0.4%)
Fund: 100 – General Fund
Total Amount (2016): $50,000
Total Amount (Ongoing ): N/A
Outcome: Environmental Health Contact: Honore Depew
Delbert Bernhardt
FTE Requested: N/A
Description:
Biomass burners provide both energy from a renewable source (wood) and a means for disposing of a
high-volume, organic material that should be diverted from landfills. Being a relatively simple and proven
waste-to-energy technology, several biomass burners are currently producing energy around our region
and even in the city. The costs of capital construction and ongoing O & M are knowable with a payback
rate relative to savings from offset fuel costs. For example, Boulder County has realized $20,000 per year
in savings from each of its systems, with an ROI of ten years.
This study sets the stage to determine if a biomass burner is appropriate for our community, where it
would be most useful, and at what scale. The project is a collaboration between Sustainability Services,
Parks, and Operation Services, with the assistance of the US Forest Service and Colorado State Forest
Service. The Forest Service will very likely be able to provide matching or grant funding for a portion of
the study costs, which would lower this request, which also includes the cost of an engineering, design,
and operations plan for a resulting facility. Opportunities to partner with a nearby business or institution in
need of steady heat or hot water will be pursued.
A key driver of this study is the recognition that the inevitable Emerald Ash Borer (EAB) beetle infestation
will likely lead to the death of the vast majority of Fort Collins’ 70,000+ ash trees which may end up
flooding landfills without a strategic disposal management plan, and if determined to be feasible, this
technology could also be utilized after the EAB die-off for much of the urban wood debris in the
community.
Therefore the primary desired result of this project is to conduct feasibility research that will lead to a
recommendation for or against pursuing biomass conversion technology as a means for EAB wood
disposal, long-term wood waste management, and renewable energy generation. If deemed feasible, a
biomass burner could reduce up to 2,000 tons of greenhouse gas emissions in 2020.
1
CAP – Appropriation for Immediate Actions
Jeff Mihelich, Kevin Gertig, Jackie Kozak Thiel, Mike Beckstead, Lucinda Smith, Lindsay Ex
April 5, 2016
Purpose:
Follow up from 3/10 Work Session
2
WHAT:
Appropriate $230,510 – General Fund
Appropriate $245,483 – Light and Power Fund
WHY:
Four projects for the Climate Action Plan:
• Building and Energy Disclosure and Scoring
• CAP Program Support
• CAP Pilot Projects/Innovation Fund
• Biomass Feasibility Study
0
500,000
1,000,000
1,500,000
2,000,000
2,500,000
3,000,000
1995 2000 2005 2010 2015 2020 2025 2030 2035 2040 2045 2050
CAP Journey: Progress
3
20% Reduction
80% Reduction
Carbon
Neutral
Inventory Results
Forecast
2015 Inventory: Emissions Goal
9% below 2005
(preliminary data)
CO2 Tons
CAP Journey: Investments & Savings
4
• Short-term investments yield
significant long-term savings
• Paybacks vary – short to long
• Overall benefit/cost = 2.5
§ For every $1 invested, the
community saves $2.50
LED LIGHT BULB:
Investment: $6
Annual Savings: $5
Impact: 58 kWh
0.05 tons
SOLAR PANELS:
Investment: $8400
Annual Savings: $500
Impact: 5500 kWh
4.47 tons
Initiatives Summary &
2016 Appropriation Request
5
Item
Initiative
($,000)
2016 Capital & O&M Ongoing
Annual
Capital &
O&M
General
Fund
Light and
Power Total
1
Building Energy
Disclosure and Scoring
$51,388 $51,388 $89,066
2 CAP Program Support $55,510 $129,095 $184,605 $333,153
3
CAP Pilot Projects/
Innovation Fund
$125,000 $65,000 $190,000 N/A
4 Biomass Feasibility Study $50,000 $50,000 N/A
Totals $230,510 $245,483 $475,993 $422,219
*2016 General Fund ($256,204) - covered by current estimate of unassigned fund balance
**2016 Light and Power Enterprise Fund ($219,789) - covered from fund reserves
Building Energy Disclosure and Scoring
6
$51,388 ($89,066 Ongoing)
2020 Impact: 2,000 CO2e Tons (0.4%)
• Energy efficiency as part of the
decision-making process
• Purchase, rental, or lease of homes
and commercial buildings
• Significant reductions by 2030
• City Energy Project
CAP Program Support
7
$184,605 ($333,153 Ongoing)
2020 Impact: Enabling Initiative
CAP Program Manager
• Oversee, coordinate, and manage CAP implementation
Sustainability Services Area (SSA) Financial Analyst
• Enable SSA to develop business plans and financial
analyses around CAP and SSA strategies
Smart Grid and Systems Operation Manager
• Integrate renewable and distributed supply resources
into the electric delivery system in a way that is both
safe and reliable
CAP Pilot Projects/
Innovation Fund
8
$190,000 (Ongoing funding vetted thru BFO)
2020 Impact: Varies
• Foster innovative approaches to CAP goals
• Test and learn from scalable concepts
• Prioritized Initiatives:
• HEAL ($60K)
• Carbon Sequestration Analysis ($75K)
• CAP Innovation Summit ($25K)
• Electrify Commercial Lawn & Garden
Equipment ($30K)
Biomass Burner Feasibility Study
9
$50,000 (One-time funding)
2020 Impact: 2,000 CO2e Tons (0.4%)
• Explore logistics and opportunities
surrounding a biomass burner in Fort Collins
• Source of renewable energy and means for
reducing methane emissions from organic
material
• Preparation and mitigation for Emerald Ash
Borer beetle infestation and other urban
wood debris
Next Steps
10
• Vet 3 initiatives to bring to
Council in the 1-2 months
• Continue vetting and prioritizing
all 31 initiatives
• Prepare offers for the ‘17-18 BFO
• Continue to work with CAC and
the community
• Refine messaging
11
CAP – Appropriation for Immediate Actions
Jeff Mihelich, Kevin Gertig, Jackie Kozak Thiel, Mike Beckstead, Lucinda Smith, Lindsay Ex
April 5, 2016
-1-
ORDINANCE NO. 046, 2016
OF THE COUNCIL OF THE CITY OF FORT COLLINS
APPROPRIATING PRIOR YEAR RESERVES IN THE GENERAL FUND AND THE LIGHT
AND POWER FUND AND TRANSFERRING APPROPRIATIONS FROM THE LIGHT AND
POWER FUND TO THE GENERAL FUND FOR 2016 PROJECTS ASSOCIATED WITH
THE 2020 CLIMATE ACTION PLAN (CAP) STRATEGIC PLAN
WHEREAS, in 2015, City Council adopted updated community greenhouse gas goals
and targets to be achieved by 2020; and
WHEREAS, staff has developed an implementation plan based on the accelerated goals
of the Climate Action Plan (CAP) and has identified several initiatives for immediate action and
investment based on guidance provided by the City Council; and
WHEREAS, four projects have been identified for immediate action and investment: (1)
Building Energy Disclosure and Scoring, (2) CAP Program Support, (3) CAP Pilot
Projects/Innovation Fund, and (4) Biomass Burner Feasibility Study (collectively, the
“Projects”); and
WHEREAS, staff is requesting $230,510 from General Fund Reserves and $245,483
from Light and Power Fund Reserves to fund these four Projects in 2016; and
WHEREAS, investing in these Projects has a total budget impact of $475,993 in 2016,
with an ongoing commitment of $422,219; and
WHEREAS, the Building Energy Disclosure and Scoring, CAP Program Support and
Projects/Innovation Fund projects are intended to manage or reduce, at least in part, peak
demand and overall electric service loads; and
WHEREAS, consistent with Article XII, Section 6 of the Fort Collins City Charter,
funding of a portion of the total cost of these initiatives with Light and Power Fund Reserves
serves electric utility purposes and reflects a proportionate benefit expected to accrue to Light
and Power ratepayers by seeking to manage and minimize overall future capital needs, and
resulting rate impacts, that would otherwise be required to support increasing peak demand and
overall electric service loads; 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 appropriated amount or portion thereof
from one fund (project) to another fund (project), provided that the purpose for which the
transferred funds are to be expended remains unchanged.
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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 General
Fund the sum of TWO HUNDRED THIRTY THOUSAND FIVE HUNDRED TEN
DOLLARS ($230,510) for expenditure in the General Fund for the City of Fort Collins for
the four Projects.
Section 3. That there is hereby appropriated from prior year reserves in the Light and
Power Fund the sum of TWO HUNDRED FORTY-FIVE THOUSAND FOUR HUNDRED
EIGHTY-THREE DOLLARS ($245,483) for expenditure in the Light and Power Fund for the
City of Fort Collins for the four Projects.
Section 4. That the unexpended appropriated amount of SEVENTY-SEVEN
THOUSAND TWO HUNRED AND TEN DOLLARS ($77,210) in the Light and Power Fund is
authorized for transfer to the General Fund and appropriated therein for the City of Fort Collins
for the four Projects.
Introduced, considered favorably on first reading, and ordered published this 5th day of
April, A.D. 2016, and to be presented for final passage on the 19th day of April, A.D. 2016.
__________________________________
Mayor
ATTEST:
_______________________________
City Clerk
Passed and adopted on final reading on the 19th day of April, A.D. 2016.
__________________________________
Mayor
ATTEST:
_______________________________
City Clerk