HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 07/19/2016 - SECOND READING OF ORDINANCE NO, 081, 2016, APPROPRAgenda Item 16
Item # 16 Page 1
AGENDA ITEM SUMMARY July 19, 2016
City Council
STAFF
Lindsay Ex, Environmental Program Manager
Jackie Kozak-Thiel, Chief Sustainability Officer
Mike Beckstead, Chief Financial Officer
Kevin Gertig, Utilities Executive Director
Laurie Kadrich, Director of PDT
Jeff Mihelich, Deputy City Manager
Lucinda Smith, Environmental Sustainability Director
Susie Gordon, Senior Environmental Planner
SUBJECT
Second Reading of Ordinance No, 081, 2016, Appropriating Prior Year Reserves in the General Fund for 2016
Projects Associated with the 2020 Climate Action Plan (CAP) Strategic Plan.
EXECUTIVE SUMMARY
This Ordinance, unanimously adopted on First Reading on June 21, 2016, appropriates funding from the prior
year reserves in the General Fund to implement two initiatives outlined in the Draft 2020 Climate Action Plan
(CAP) Strategic Plan. First, the Ordinance appropriates $85,000 accumulated during 2015 and 2016 in the
Waste Innovation Fund account into the City’s General Fund account to initiate the Municipal Green Waste
(Composting) Site Initiative. Second, based on direction at First Reading, the Ordinance also appropriates
$1,460,000 from the General Fund to provide energy efficiency rebates for the business community ($1.37M)
and the Efficiency Works Neighborhoods Pilot ($0.09M) through 2016.
STAFF RECOMMENDATION
Staff recommends that Council appropriate $85,000 from the prior year General Fund Reserves for the City of
Fort Collins Municipal Green Waste Composting site, and recommends postponing consideration of $1.46M for
2016 energy efficiency funding for at least 60 days. A postponement of the energy efficiency funding
consideration will allow staff to evaluate funding demands in the broader context of the 2017/2018 budget
process with a full picture of CAP and City priorities.
DIRECTION AT FIRST READING AND FOLLOW-UP
On June 21, 2016, City Council unanimously adopted the proposed Ordinance on First Reading with one
amendment: the revised Ordinance fully funds the energy efficiency incentives for the business community and
the Efficiency Works Neighborhoods Pilot through 2016 from General Fund Reserves. As discussed at the
meeting, the funds appropriated for this program have been fully committed in 2016, preventing new business
participation. Without this additional funding appropriated on First Reading, businesses interested in the
energy efficiency incentives would have to be waitlisted until new funding becomes available in 2017, when the
new budget cycle begins.
During First Reading, Council recognized the level of engagement by the private sector in 2016 in this
program, the program’s significant contribution to the 2020 CAP Goals of reducing the community’s emissions
20% below 2005 levels, and the program’s leveraging of private sector dollars (on average, for every dollar the
City invests, the private sector invest $3-5). Given the $6.7M available in the General Fund Reserves, Council
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unanimously supported fully funding the business energy efficiency incentives through the remainder of 2016
from the General Fund on First Reading.
During First Reading, City staff recommended postponing a decision on the business energy efficiency
incentives for 60-90 days, due to the limited resources in the Light and Power Fund and the ongoing Budgeting
for Outcomes (BFO) process that is currently underway, On Second Reading, staff continues to recommend
postponement of energy efficiency funding for at least 60 days to allow opportunities to evaluate the
supplemental 2016 funding request in the larger context of the 2017-2018 Budgeting for Outcomes funding
needs, the Long Term Financial Plan, and Light and Power Capital Improvement Plan (CIP) (September
timeframe).
In addition to adopting the Ordinance, Council also asked staff to address the following questions at Second
Reading of the Ordinance:
1. The fund for energy initiatives was used up quicker than anticipated - are there any needed
changes to the parameters for projects funded to ensure program continuity?
Council discussion: Council asked questions during First Reading regarding whether program
parameters need to be adjusted to ensure that programs continue for the full year in which funding is
allocated. Council directed staff to provide additional information about how program parameters are set
and whether these are adequate to achieve program continuity.
Staff response: A staff team from Utilities, Platte River and the other three Platte River cities meets
quarterly to review the progress, results and parameters of the Efficiency Works Business program.
Typically, changes to the program are made on an annual basis, including incentive levels for specific
measures. However, mid-year changes are made as needed. In March 2016, incentive levels for a
common type of LED lighting retrofit were reduced by 33% in response to changes in market and project
pricing. The staff team is in the process of clarifying rules regarding annual caps for customers with
multiple premises or very large single projects. This will help the City maintain a consistent program, to the
extent possible with varying levels of funding. The overall review will also occur in the 4th quarter of 2016
to evaluate revisions for 2017.
2. Please provide data on the amount of dollars committed versus the dollars actually spent - as staff
indicated that as the program unfolds year after year, a certain percentage of funds are not used.
Council discussion: During First Reading, Councilmembers directed staff to provide Council with
additional information on the process of the incentives programs, including how dollars are committed
versus spent. Council also requested information on project completion, specifically whether there is a
differential between dollars committed versus dollars spent, i.e., do participants drop out of the program
and then City dollars go unspent.
Staff Response: Utilities and Platte River use appropriated funds to “commit” project level incentives to
customers after receiving and approving a completed application. Customers and contractors provide a
completion date estimate and funds are available for up to 60 days past this completion date. After this
time, the project funds may be allocated to another project, though staff regularly contacts the customer to
clarify the project status. The rate of projects being reallocated in 2016 YTD was 4% (10 out of 250).
Incentives are “paid” and funds “expended” upon completion of final paperwork and project verification.
Project applications received late in the year are often completed after January 1 (typical project cycle is
approximately 45 days). Committed funds for these late year projects are typically carried over to the next
year in the form of a purchase order with Platte River. For 2014 and 2015, this carryover averaged
$275,000, which was fully spent in the first quarter of the following year. With the proposed supplemental
funding, program staff will collaborate with customers and service providers to manage, to the extent
possible, a commitment rate of funding through the second half of 2016 to match the overall budget.
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3. What did the business energy efficiency incentives program accomplish this year? What is
anticipated to be accomplished in the future?
Council discussion: During First Reading, Councilmembers expressed an interest in receiving an update
regarding the success and impact of the Energy Efficiency Programs. Council directed staff to provide an
update on the current program and more information on future expectations.
Staff response: Attachment 2 illustrates the program performance over time. Compared to 2014 and
2015, the 2016 pace of the program has seen more businesses participating, an overall larger and greater
number of project, and higher overall savings.
Moving forward, staff has forecast a rate of participation in 2017-2018 (Enhancement Offer 6.76) that is
higher than historical average, but lower than the exceptional rate seen in the first half of 2016. The BFO
ongoing and enhancement offers are aligned with the Energy Policy and CAP efficiency targets for
2017/18. See Attachment 5 for a full list of energy efficiency programs offered by the City.
4. If Council adopts the amended Ordinance on Second Reading that fully funds the business energy
efficiency incentives in 2016 from General Fund Reserves, how will this impact the General Fund?
Council discussion: During First Reading, Councilmembers asked staff to address how funding the
business energy efficiency incentives from General Fund Reserves would impact that funding source.
Staff response: The City ended 2015 with $6.7M of unassigned and available General Fund reserves.
Council directed staff to utilize $1,545,000 of these reserves to support Business Energy Rebates and
Municipal Composting. Council asked what impact this may have on the upcoming BFO process and the
General Fund. During the meeting, staff replied there are pressures on the General Fund similar to what
was discussed with L&P and ongoing and enhancement offers exceed available revenue and fund
balance. Specific funding impacts will be better understood as the BFO process is completed.
5. What was the original 2016 budget for energy efficiency funding? What are the expenditures to
date? When did we expend all the funds?
Staff response:
Efficiency Works Business program:
The original budget for the Efficiency Works Business program incentives was $1,803,000
($750,000 coming from Fort Collins Utilities and $1,053,000 from Platte River).
As of early June 2016, $1,807,000 was either paid or committed to specific Fort Collins customers
for efficiency projects ($669,117 paid and $1,138,427 committed).
Appropriated funds are required in order to commit incentives to business customers upon receipt
of a complete project application. Customer payments are administered by Platte River, who in
turn invoices Fort Collins after the Platte River portion of funding is expended.
Fort Collins Energy Services Budget:
The revised 2016 budget for the Energy Services Business Unit was $4,643,476.
As of July 5, 2016, 25% of this budget has been expended (paid), 58% is encumbered
(committed), with 22% remaining through the end of the year.
The supplemental funding request under consideration for $1,460,000 is 31% of the revised 2016
budget.
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6. Please provide a list of ClimateWise Partners and a breakdown of the $1.46M for energy efficiency
rebates.
Staff response:
ClimateWise:
In order to better serve the business community in Fort Collins, the ClimateWise program was
redesigned by City staff and business partners in 2015. The redesigned program was met with
enthusiasm by the business community with 95% of survey respondents agreeing that the new
program provided better support for their business. ClimateWise has added 33 new businesses in
2016 alone, bringing the total number of Partners who have pledged to participate in the updated
program to 141. (Attachment 4)
In January of this year, 100 businesses reported 2,572 projects (a 40% increase in data from
previous reporting years) focused on business greenhouse gas reduction activities during 2015.
Due to the redesign of the program, data reported for 2015 included key differences from historical
numbers. Most notability:
• The methodology used in the updated program to quantify reductions only accounts
for first year greenhouse gas (GHG) savings of projects. From 2000 to 2014, the
program carried forward the “useful life” of a strategy when reporting GHG savings.
Useful life is the estimated lifespan of a project’s greenhouse gas reduction potential
quantified year over year.
• The 2015 Operations Report now reports number of “badges” earned by businesses
as an indicator of activity. Three of the five badges - Energy, Waste, and
Transportation, correlate directly with the Climate Action Plan. The other two badges,
Water and Social Responsibility are considered critical attention areas due to their
focus on community responsibility.
• Partners continue to earn a “level” in the ClimateWise program that reflects their
commitment to implementing the projects listed under each badge (projects are a
mixture of best management practices, available City programs, employee
challenges, and new innovative ideas).
Breakdown of the $1.46M:
Business Efficiency
• 150 to 200 business projects
• 3,000 to 4,000 megawatt-hours in annual savings
• 2,500 to 3,250 tons of annual carbon reductions
• Ability to reach Energy Policy 2016 efficiency target (revised Dec 2015)
Efficiency Works Neighborhoods
• Approximately 70 more homes assessed and 35 comprehensive projects completed
• Transition from pilot to standard program track
BOARD/COMMISSION RECOMMENDATION
On June 23, 2016, the Energy Board unanimously recommended support for Ordinance No. 081, 2016, to
implement the three initiatives identified in the Ordinance. The Energy Board expressed support for the use of
General Fund dollars to fund the business energy efficiency incentives for the remainder of 2016, as it believes
it demonstrated the importance of energy efficiency to Council and the communitywide impact this program
has beyond the Light and Power Fund. The Energy Board recommendation is provided. (Attachment 3)
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ATTACHMENTS
1. First Reading Agenda Item Summary, June 21, 2016 (w/o attachments) (PDF)
2. Additional Information on Business Energy Efficiency Incentives (PDF)
3. Energy Bpard memo (PDF)
4. ClimateWise Partners and 2015 Update (PDF)
5. Full List of Energy Efficiency Programs (PDF)
6. Powerpoint presentation (PDF)
Agenda Item 10
Item # 10 Page 1
AGENDA ITEM SUMMARY June 21, 2016
City Council
STAFF
Lindsay Ex, Environmental Program Manager
Jeff Mihelich, Deputy City Manager
Mike Beckstead, Chief Financial Officer
Kevin Gertig, Utilities Executive Director
Laurie Kadrich, Director of PDT
Jackie Kozak-Thiel, Chief Sustainabillity Officer
Lucinda Smith, Environmental Sustainability Director
Susie Gordon, Senior Environmental Planner
SUBJECT
First Reading of Ordinance No, 081, 2016, Appropriating Prior Year Reserves in the General Fund for 2016
Projects Associated with the 2020 Climate Action Plan (CAP) Strategic Plan as Part of the Waste Innovation
Program.
EXECUTIVE SUMMARY
The purpose of this item is to appropriate $85,000 accumulated during 2015 and 2016 in the Waste Innovation
Fund account into the City’s General Fund account to initiate the Municipal Green Waste (Composting) Site
Initiative outlined in the Draft 2020 Climate Action Plan (CAP) Strategic Plan. At First Reading, staff will also
update Council on the remaining two initiatives (of 7) that were discussed at the March 10, 2016 Work
Sessions related to the 2020 CAP Strategic Plan. During that Work Session, staff committed to further vetting
3 of the 7 initiatives, with special consideration toward the larger financial impact of those initiatives. On these
two remaining initiatives, staff will highlight a change in the funding source for solar incentives and rebates,
allowing this initiative to move forward, and a recommendation to postpone consideration of the energy
efficiency funding for approximately 60-90 days. The postponement of the energy efficiency funding will allow
staff to evaluate the supplemental 2016 funding in the larger context of the Light and Power Capital
Improvement Plan (CIP), Long Term Financial Plan, and 2017-2018 Budgeting for Outcomes funding needs
(August/September timeframe) to help balance and inform decisions to address both the critical Utilities
infrastructure and advance CAP priorities.
STAFF RECOMMENDATION
Staff recommends adoption of this Ordinance on First Reading.
BACKGROUND / DISCUSSION
In 2015, City Council adopted updated the community greenhouse gas reduction goals:
20% below 2005 levels by 2020,
80% below 2005 by 2030, and
Carbon neutrality by the year 2050
In order to reach these goals, 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, Work Session, staff identified seven
ATTACHMENT 1
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Item # 10 Page 2
initiatives that could be invested in immediately. At the April 19, 2016, City Council meeting, Council adopted
Ordinance 046, 2016, investing in four of these seven initiatives. This item addresses two of the three
remaining initiatives (Municipal Green Waste/Composting Site and the Solar Incentives and Rebates) and
outlines the next steps proposed for the remaining initiative (Energy Efficiency) - see the table and additional
information outlined below.
Item Initiative 2016 Funding Funding
Recommendation
Waste
Innovation
Fund
Light and
Power
Total
1 Energy Efficiency N/A 0 Postpone funding
decision for 60-90
days
2 Solar Incentives and Rebates N/A 0 No new
appropriation
needed in 2016
3 Municipal Green Waste (Composting)
Sites
$85,000 - $85,000 $85,000 from Waste
Innovation Fund
Reserves
Totals $85,000 $85,000
Below is a summary of the three initiatives that were highlighted at the March 10, 2016 Work Session with City
Council (see Attachment 2 for full project descriptions on the Solar Incentives and Rebates and the Municipal
Green Waste (Composting) Sites, as those initiatives are proposed to move forward with this item):
1. Energy Efficiency: up to $1,460K
2020 Impact: 230,000 CO2e Tons (46%)
Energy efficiency programs provide approximately half of the projected energy savings to reach the
2020 target. Of this efficiency component, over 90% is from continued and enhanced Utilities efficiency
programs. These programs, many under the Efficiency Works shared brand, provide incentives and
technical assistance for all customer segments and most technology end uses-engaging residents and
businesses in meeting the community CAP goals.100% of supplemental City funding would support
customer efficiency improvements, of which every City dollar is leveraged 3 to 5 times by customer
investment.
Utilities has seen extraordinarily high participation in business efficiency programs year to date. This
uptake is good news - it shows an expanded pace for efficiency savings and community engagement
in the CAP goals. If continued at this current pace, the programs are well positioned to achieve the
energy efficiency portion of the 2020 CAP goals (230,000 tons of carbon, 46% of the 2020 goal).
However, as a result of this increased uptake in efficiency programs by the business community and
ongoing activity for residents, the City has committed all funding for energy efficiency incentives and
rebates for 2016. Utilities and Platte River are implementing a wait list process for projects as
applications are received (see Attachment 4 for the communication materials sent to customers
regarding this process). The estimated gap in program funding through the end of 2016 is up to
$1,460,300, based on forecasted activity in business programs and continuation of the Efficiency
Works Neighborhood pilot in the 4th quarter.
Staff is excited to implement the energy efficiency programs at a greater scale and accelerated pace to
meet CAP goals and respond to community demand. During the additional vetting of energy efficiency
funding, new information became available (since the March 10 Work Session) regarding the limited
Light & Power (L&P) funding. The CAP Executive Team recommends that Council consider
postponing the decision to recommend supplemental 2016 energy efficiency funding until the
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Item # 10 Page 3
August/September timeframe. This is because, in the next 60-90 days, the L&P Capital Improvement
Plan (CIP), Utilities Long Term Financial Plan, and the BFO funding needs will be better understood,
and this understanding will help balance and inform decisions around both addressing critical Utilities
infrastructure and advancing CAP priorities. Three key analyses have informed this recommendation:
1. Currently, the L&P CIP indicates Utilities may have long-term reserve funding shortfalls to
meet priority infrastructure needs.
2. Initial BFO estimates of revenue and spending within L&P indicate a significant shortfall (up to
$10M short fall each year between revenue and ongoing offers plus required capital, outside
of the proposed enhancements).
3. The updated unassigned and available fund balance in L&P decreased from $18.4M to
$16.4M.
Providing partial funding for this interim period would provide for additional savings in 2016, extend the
ability of the programs to meet customer interest and keep efficiency service providers engaged
locally. However, the transition to a wait list status for business programs would simply occur later in
the year. In addition to the three analyses mentioned above, staff is working to quantifying the
benefits/costs of investing in CAP projects to allow a comparison and selection based on this impact
during the BFO process. At the same time, efficiency measures have consistently been analyzed as
providing high cost-effectiveness for carbon reduction in prior Fort Collins analyses and in independent
analyses conducted elsewhere.
More details associated with this recommendation are provided in the attached memo (see
Attachment 3).
2. Solar Incentives and Rebates: up to $350K
2020 Impact: 9,000 CO2e Tons (1.8%)
The current 2016 budget for solar incentives is $250,000 for residential and $125,000 for small
commercial solar projects. This budget supports approximately 170 home and 12 business rebates.
Current program uptake for the first five months of the year totals 125 residential and 2 commercial
projects with rebate funds committed to them. This represents 74% and 16% of budgeted capacity for
home and business rebates, respectively. In order to respond to additional rebate requests beyond the
initially authorized funding, staff expects to be able to shift uncommitted 2016 solar funds from the
Solar Power Purchase Program and the Community Solar program for a total of approximately
$300,000 in additional funds. This shifting of funds will help the program meet potential interest for
additional solar incentives in 2016.
Funding from the Solar Power Purchase Programs is available because all of the program’s projects
are complete and Power Purchase Agreements made are less than what was budgeted for 2016. The
Community Solar program funds are available due to a shift in the timeline for the next project to 2017.
Unless directed otherwise by Council, Utilities will inform customers and vendors of the additional
funding for 2016. Upon the full commitment of existing solar rebate funds, the additional funding would
be transferred from the two referenced solar programs to the Solar Rebates program.
3. Municipal Green Waste (Composting) Sites: $85K
2020 Impact: 9,000 CO2e Tons (1.9% of the Municipal Pathway to reach the 2020 Goals)
This initiative will enable municipal composting for organic landscape debris through a small-scale
(100 tons/year) composting facility at the Hoffman Mill Road Crushing Facility. The proposal includes
site grading at the Hoffman Mill Road Crushing Facility, purchase of compost-turning equipment, and
ongoing composting operations and management by the Streets Department.
Capital costs of $85,000 are associated with developing a City-only composting facility. Funds are
available to appropriate from prior year reserves in the General Fund that were collected for the Waste
Innovation Program. Composting capability will increase landfill waste diversion by departments,
including Parks, Streets, Forestry, Natural Areas, Stormwater, and Light & Power, that generate
Agenda Item 10
Item # 10 Page 4
organic debris from municipal maintenance activities. As primary manager of the site, Streets will not
charge departments for in-bound material bought to Hoffman Mill Road for composting, but will charge
for out-bound compost products to allow them to recover operational costs for composting. Other
departments’ purchase of finished compost from Streets will be offset by savings from normal
purchases of commercially manufactured compost for use in landscaping projects.
CITY FINANCIAL IMPACTS
Investing in these initiatives has a bottom line impact of $85,000 in 2016, with no ongoing commitment to the
City budget.
Waste Innovation Fund
The $85,000 for the Municipal Green Waste Site is funded through the Waste Innovation Fund, and ongoing
costs will be covered by the sale of compost products to City departments.
The City Manager created a fund in 2010 to pay for projects that improve our organizational ability to divert
waste generated by municipal activities from being disposed in the Larimer County landfill. Discarded material
and trash that City crews self-haul to the landfill is charged only 28 cents/cubic yard by Larimer County Solid
Waste Department, which is passed through in payment to the state for landfill regulatory management and
monitoring programs.
The balance of the regular “tipping fee” at the landfill, $5.27 per cubic yard, is placed in the City’s Waste
Innovation Program (WIP) fund. WIP revenues are received from 15 City departments that self-haul various
types of waste to the landfill in truckloads. A cross-departmental team accepts and reviews proposals that
support the City’s goal to reduce landfill disposal. An application was developed by the Streets Department to
purchase composting equipment in February, 2016. The WIP team voted unanimously to recommend this
funding request.
Approval of the request to use $85,000 from Reserves will save costs of sending material to the landfill that
can otherwise be composted, including fall leaves swept from streets. The compost-turning equipment makes
up $51,000 of the total; other expenses include a creeper gear for an existing tractor, staff training, and
supplies.
Light and Power Fund
Staff has identified existing programs from which funds can be made available in 2016 to provide supplemental
funding to the residential and small commercial solar rebates. The funds are available from two programs: (1)
the Solar Power Purchase Program (SP3) for which all contracts are complete and the ongoing cost is lower
than originally forecasted, and (2) Community Shared Solar for which the Platte River led project is now on
schedule for 2017. These funds (approximately $350k) can be utilized to support the Solar Incentives and
Rebates Program.
BOARD / COMMISSION RECOMMENDATION
Staff will present this information to the Energy Board at its next regularly scheduled meeting in July for
discussion and feedback. 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. However, the status of these off-cycle funding decisions has not
been discussed.
PUBLIC OUTREACH
Staff has reviewed all of the initiatives and BFO Offers associated with the 2020 CAP Strategic Plan with the
Climate Action Plan’s Community Advisory Committee. Staff is beginning to schedule public outreach events,
including an Open House with former governor Bill Ritter to gather community feedback on the Climate Action
Plan; however, the status of these off-cycle funding decisions has not been discussed.
Agenda Item 10
Item # 10 Page 5
ATTACHMENTS
1. Work Session Summary, March 10, 2016 (PDF)
2. Initiative and Project Descriptions (PDF)
3. Memo to City Council, June 7 re: The Status of the Remaining CAP Initiatives for Immediate Investment
(PDF)
4. Notice to Customers regarding Energy Efficiency Rebate Availability (PDF)
5. Powerpoint presentation (PDF)
Summary of Business Energy Efficiency Incentives (Efficiency Works Business) Results
The table below outlines the comparative results of the Efficiency Works – Business program (a
partnership program with Platte River) in 2014, 2015 and the first 5.5 months of 2016. During the
first five months of 2016, the program saw activity increase by 70% over the 2014/2015 average, and
rebates increase by 150%. At the same time, incentives per project and savings per project were each
higher respectively. This means that the projects are coming in at a higher rate, are larger in size and are
saving more energy per dollar of rebate than they have in the last two years. Note that this table includes
funding from both Fort Collins Utilities and Platte River Power Authority. Results are from Platte River
system used to track combined budgets, commitments and completed (paid) projects.
Program Data 2014 2015
2016
(5.5 months) % Increase
Total Projects 399 406 283 --
Total Incentives $1,743,591 $1,725,693 $1,807,544 --
Projects (monthly average) 33 34 57 70%
Incentives (monthly average) $145,299 $143,808 $361,509 150%
Incentive per project ($) $3,740 $3,540 $7,920 118%
Savings per project (kWh) 16,100 13,000 37,000 154%
The chart below shows the monthly rate of projects and incentive funding commitments since
January 2014. The solid red line illustrates the 12 month rolling average forecast. The monthly business
incentive commitment rate is illustrated by the green bars, with the monthly number of business
applications illustrated by the blue line. The short bold blue line represents the proposed rate of
supplemental funding per month at $250,000.
ATTACHMENT 2
Utilities – Energy Board
700 Wood St.
PO Box 580
Fort Collins, CO 80522
970.221.6702
970.416.2208 - fax
fcgov.com
M E M O R A N D U M
DATE: June 28, 2016
TO: Mayor Troxell and City Councilmembers
FROM: Nick Michell, Energy Board Vice Chairperson
THROUGH: Peter O’Neill, Energy Board Chairperson
RE: City Council Second Reading - Climate Action Plan (CAP) Initiatives
Appropriation
The Energy Board has received multiple CAP presentations from Environmental Services and
Utilities’ Resource Conservation staff over the past months. The most recent presentation, given
at the June 23 special session meeting, focused on the July 5 City Council second reading of the
three CAP initiatives approved at the first reading on June 21.
The Board unanimously supports the following initiatives and funding recommendations:
1. Energy Efficiency Programs
x $1.46 million to fund energy efficiency services from the General Fund for the
remainder of 2016
2. Solar Initiatives and Rebates
x Proposed rooftop solar to businesses and community
3. Municipal Green Waste (Composting) Site
x $85,000 one-time funding request
Board members expressed due to the funding challenges in the Light and Power Fund, funding
energy efficiency services from the General Fund made sense for this one-time funding
allocation.
On behalf of the Energy Board,
Nick Michell, Vice Chairperson
Fort Collins Energy Board
cc: Darin Atteberry, City Manager
Kevin R. Gertig, Utilities Executive Director
Tim McCollough, Light & Power Operations Manager
DocuSign Envelope ID: 13098E12-6488-499F-936C-199EC59F6AFA
ATTACHMENT 3
ATTACHMENT 3
CLIMATEWISE PARTNERS
ADP (Automac Data Processing) Front Range Village Respite Care Inc.
Advanced Animal Care of Colorado Gallegos Sanitaon Rio Grande Mexican Restaurant
Advanced Energy Gallipo Salon Rivendell School
AECOM Gamble Pet Clinic RLE Technologies
Air Comfort Inc Green CO2 Systems RLR LLP
Anheuser-Busch Green Events Road Warrior Creave, LLC
ArboRx Tree Care Green Ride Colorado Rocky Mountain Innosphere
Architecture Plus GreenClean Colorado SAGE Global Educaon
A-Train Markeng Communicaons, Inc. Headwaters Realty Sandbox Solar LLC
BBB serving Northern Colorado and Wyoming Hewle Packard ServiceMaster
Berkana Rehabilitaon Instute Horse & Dragon Brewing Company Sexual Assault Vicm Advocate Center
BEST WESTERN University Inn Houska Automove Services, Inc. Signarama Fort Collins
Bohemian Companies I.T. Refresh Skyline Solar and Roofing
Bounce Soware, LLC IBMC College Snooze an AM eatery
Brinkman Partners Inner Balance Chiropracc Soiltopia
Broadcom Limited In-Situ Spirae, LLC
Cargill Specialty Seeds & Oils Integrated Mechanical Steven J Wick & Associates
Charco Broiler Jax Outdoor Gear StraightLine Fitness Studio
ChildSafe Colorado Jax Ranch & Home Terracon Consultants, Inc.
Chipper's Lanes JVA, Incorporated The Armstrong Hotel
Choice City Gardeners Khumbu Adventure Gear The Cupboard
City of Fort Collins Lamp Rynearson & Associates The Growing Project
CJR Homes Larimer County Government The Language Lounge
Colorado State University LifePointe Church The Neenan Company
Columbine Health Systems Liquid Impact Water Jet The Wright Life
Dellenbach Motors Marn Mariea Materials, Inc. Toddy LLC
Digital Workshop Center Motherlove Herbal Company Transect View LLC
Dohn Construcon Inc. Mountain Whitewater Transpro-Burgener Trucking
Dr. Seth's Mustache Wax New Belgium Brewing Company Trebuchet Group
Dresser-Rand NewMark Merrill Treehouse Montessori
Drive Electric Northern Colorado Nicol Realty (Campus West Shops) Trees, Water & People
Early Childhood Council of Larimer County Nuance Chocolate Trinity Lutheran Church
Efficiency Maers Odell Brewing U.S. Geological Survey
Eger CPA Old Town Media United Way of Larimer County
ExperiencePlus! Bicycle Tours Oer Products, LLC US Forest Service - Bldg E
Eyecare Associates Plae River Power Authority USDA APHIS Naonal Wildlife Research
Farnsworth Group Plymouth Congregaonal Church USDA APHIS NRRC Building B
Fine Print Imaging Poudre Fire Authority USDA-ARS Fort Collins
Foothills Gateway Poudre River Public Library District Vern's Toffee House
Foothills Unitarian Church Poudre School District VFLA & Ripley Design
Forney Industries Primp Hair Studio Vineyard Church of the Rockies
Fort Collins Brewery Professional Document Soluons Welsh Rabbit Cheese Shop
Fort Collins Club Public Service Credit Union Wilbur's Total Beverage
Fort Collins Coloradoan Rainbow Restaurant Wirestone LLC
Fort Collins Retail Nursery Ramplify Wolf Robocs
Frameworks Timber RB+B Architects, Inc. Woodward
Front Range Community College RE/MAX Advanced, Inc. Your true Nature
Energy and Water Efficiency
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ATTACHMENT 5
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1
CAP – Appropriation for Immediate Actions
Jeff Mihelich, Kevin Gertig, Jackie Kozak Thiel, Mike Beckstead, Lucinda Smith, Lindsay Ex
July 19, 2016
ATTACHMENT 6
Ordinance Second Reading
2
• Municipal Green Waste (Composting) Sites - $85,000
• Energy Efficiency Business Incentives - $1.46M
• Solar Incentives and Rebates – no appropriation needed
Draft Roadmap to 2020
*Reductions are estimates and rounded to the nearest thousand 3
Fort Collins Efficiency Programs
Collaborative Programs with
Platte River
• Efficiency Works Home
- EW Neighborhoods pilot
• Efficiency Works Business
• Retail Lighting
• Larimer County Conservation
Corp
Fort Collins Programs
• Appliance Rebates and
Recycling
• Home Energy and Water
Reports
• Integrated Design Assistance
Program
• Also financing, water, solar,
demand response and green
code amendments
CORE FUNCTIONS: Audits – Technical Assistance – Incentives - Financing
Efficiency Program Participation
Cumulative annual savings ~ 10% of community annual electricity
use with a utility cost of 2.2 cents per kilowatt-hour
• Since 2004*
– Over 2,400 business efficiency projects
completed
– Over 1,600 home efficiency projects
– Over 21,000 appliance rebates and 5,000
recycled units
– Over 450,000 bulbs
*Actual numbers based on results
Efficiency Program Participation
2016 Business Participation*
• 205 efficiency projects completed YTD
– 95 lighting, 96 refrigeration, 10 water, 4 other
• Wide range of customers participate
– Columbine Health
– Palmer Properties
– Poudre School District
– Mug’s Coffee
– Poudre Valley Hospital
– Austin’s, Jax, Otterbox
– And many, many more
*Actual numbers based on results
2016 Efficiency Funding Gap*
7
Business
Incentives
per month
Business
Incentives 6
months
EW
Neighborhoods
Q4 Total
Monthly Commitment Low $140k $840k $90k $930k
Monthly Commitment Medium $228k $1,370k $90k $1,460k
Monthly Commitment High $360k $2,160k $90k $2,250k
*Estimated numbers based on forecasts
2016 Efficiency Supplementary Funding
What do we get for $1.46M?
• Business Efficiency
– 150 to 200 business projects
– 3,000 to 4,000 megawatt-hours in annual savings
– 2,500 to 3,250 tons of annual carbon reductions
– Ability to reach Energy Policy 2016 efficiency
target (revised Dec 2015)
• EW Neighborhoods
– Approximately 70 more homes assessed and 35
comprehensive projects completed
– Transition from pilot to standard program track
$1.4M
public
investment
$4 – 7M
private
investment
$8 - 14M
lifetime
savings
2:1 benefit
3-5X cost ratio
leveraging of
public dollars
Ordinance Second Reading
9
• Municipal Green Waste (Composting) Sites - $85,000
§ Staff Recommendation – Adoption on Second Reading
• Energy Efficiency Business Incentives - $1.46M
§ Staff Recommendation – Postpone consideration of these incentives
for 60-90 days
• Solar Incentives and Rebates – no appropriation needed
-1-
ORDINANCE NO. 081, 2016
OF THE COUNCIL OF THE CITY OF FORT COLLINS
APPROPRIATING PRIOR YEAR RESERVES IN THE GENERAL
FUND FOR 2016 PROJECTS ASSOCIATED WITH THE
2020 CLIMATE ACTION PLAN (CAP) STRATEGIC PLAN
WHEREAS, on March 3, 2015, City Council adopted Resolution 2015-030, updating
community greenhouse gas goals and targets to be achieved by 2020, 2030, and 2050; 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, on April 19, 2016, City Council adopted Ordinance No. 046, 2016,
appropriating funds toward four projects identified for immediate action and investment (1)
Building energy Disclosure and Scoring, (2) CAP Program Support, (3) CAP Pilot
Project/Innovation Fund, and (4) Biomass Burner Feasibility Study; and
WHEREAS, two additional projects have been identified for immediate action and
investment: (1) Solar Incentives and Rebates, and (2) Municipal Green Waste (Composting)
Sites; and
WHEREAS, appropriated, but unexpended and unencumbered, funds are available in
2016 from the Solar Purchase Power Program (SP3) and the Community Shared Solar program
in the Light and Power fund to support the Solar Incentives and Rebates Program; and
WHEREAS, staff is requesting $85,000 for the Municipal Green Waste (Composting)
Site Initiative, including compost-turning equipment of $51,000 and other expenses, outlined in
the Draft 2020 Climate Action Plan (CAP) Strategic Plan, from funds accumulated during 2015
and prior years in the Waste Innovation Program account in the City’s General Fund; and
WHEREAS, the Municipal Green Waste (Composting) Site will enable municipal
composting for organic landscape debris through a small-scale (100 tons/year) composting
facility at the Hoffman Mill Road Crushing Facility, including site grading at the Hoffman Mill
Road Crushing Facility, purchase of compost-turning equipment, and ongoing composting
operations and management by the Streets Department; and
WHEREAS, composting capability will increase landfill waste diversion by City
departments that generate organic debris from municipal maintenance activities, including Parks,
Streets, Forestry, Natural Areas, Stormwater, and Light and Power; and
WHEREAS, in 2010, the City created the Waste Innovation Program (the “WIP”) fund
where revenues collected for the program are held in a reserve account in the General Fund; and
-2-
WHEREAS, the WIP funds are used to administer grants that allow City departments to
initiate new waste diversion and recycling projects with special attention to departments that
have larger quantities of waste that is self-hauled to the Larimer County Landfill; and
WHEREAS, a team of interdepartmental employees (the “WIP Team”) acts as a liaison
for incorporating waste reduction, promoting recycling strategies, and awarding WIP funds when
requests are received from participating City departments; and
WHEREAS, the WIP Team voted unanimously to recommend the funding request for the
Municipal Green Waste (Composting) Site Initiative; and
WHEREAS, the City has implemented certain energy efficienciesy programs identified
in the 2020 Climate Action Plan (CAP) Strategic Plan (“Energy Efficiency Programs”), and has
operated these programs using funds appropriated in the Light and Power Fund; and
WHEREAS, the funds appropriated for the Energy Efficiency Programs for 2016 have
been fully committed, preventing new participation in those Programs until such time as
additional funds have been made available; and
WHEREAS, Council desires to continue new participation in and ongoing
implementation of the Energy Efficiency Programs as soon as practicable; 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.
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 EIGHTY-FIVE THOUSAND ($85,000) for expenditure in the General
Fund for the City of Fort Collins for the Municipal Green Waste (Composting) Site Initiative
as part of the Waste Innovation Program.
Section 3. That there is hereby appropriated from prior year reserves in the General
Fund the sum of ONE MILLION FOUR HUNDRED SIXTY THOUSAND
DOLLARS ($1,460,000) for expenditure in the General Fund for Energy Efficiency Initiatives
Programs as described in the CAP Strategic Plan.
-3-
Introduced, considered favorably on first reading, and ordered published this 21st day of
June, A.D. 2016, and to be presented for final passage on the 19th day of July, A.D. 2016.
__________________________________
Mayor
ATTEST:
_______________________________
City Clerk
Passed and adopted on final reading on the 19th day of July, A.D. 2016.
__________________________________
Mayor
ATTEST:
_______________________________
City Clerk