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HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 06/21/2016 - FIRST READING OF ORDINANCE NO, 081, 2016, APPROPRIAgenda 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 Agenda Item 10 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 Agenda Item 10 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) ATTACHMENT 1 2016 CLIMATE ACTION PLAN INITIATIVES Title: Solar Incentives and Rebates 2020 Impact: 9,000 CO2e Tons (1.8%) Fund: N/A Total Amount (2016): N/A Total Amount (Ongoing ): N/A Outcome: Environmental Health Contact: John Phelan Norm Weaver FTE Requested: N/A Description: 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 $350,000 in additional funds. This shifting of funds will help the program meet demands 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 in 2014 and 2016. The Community Solar program funds are available due to a shift in the timeline for the next project to 2017. Upon the full commitment of existing Solar Incentives and Rebate funds, the additional funding would be transferred from the two solar programs to the Solar Incentives rebates. Utilities would then inform customers and vendors of the available funds upon direction from Council. ATTACHMENT 2 1 2016 CLIMATE ACTION PLAN INITIATIVES Title: Municipal Green Waste (Composting) Site 2020 Impact: 100 CO2e Tons (1.9% of the Municipal Pathway to reach the 2020 Goals) Fund: 100 – General Fund Total Amount (2016): $85,000 Total Amount (Ongoing): $0 Outcome: Environmental Health Contact: Susan Gordon FTE Requested: N/A Description: The Road to Zero Waste represents approximately 25% of the projected savings to reach the 2020 target. While this initiative represents only 0.01% of the overall roadmap to 2020, it demonstrates the City as a leader in addressing its waste (representing 1.9% of the municipal reductions needed by 2020), The City is committed to reducing the amount of waste it generates and has set a goal to reduce its own “industrial” waste by 10% each year. Money paid by City departments for use of the Larimer County landfill ($5.85/yard) is deposited in the Waste Innovation Program (WIP) fund. An interdepartmental Waste Stream Team evaluates applications related to municipal operations that can serve to achieve the 80% diversion rate. This project has been selected for funding from the WIP fund (which has a balance of $179,024) for three reasons: (1) This initiative reestablishes a best practice of composting municipal waste; the City used to compost its municipal waste – organic material such as fall leaves and park landscape trimmings - until a state law prohibited municipal composting, without significant permitting. An exemption to a State regulation will be going into effect this year to allow government agencies to compost organic waste (up to 100 tons per site); (2) The City currently sends approximately 1500 cubic yards (439 tons) of green waste annually to the landfill. Funding this initiative will help divert 100 tons of the City’s operation’s waste from landfilling and will reduce 100 metric tons of carbon from the atmosphere. The compost will be used in City-owned landscape and garden applications, which help avoid using chemically based fertilizers, herbicides, and pesticides, as well as conserving on irrigation water usage. (3) The initiative allows the City to lead by example on waste diversion that benefits climate – establishing a composting site for municipal operations will provide a valuable composting product back to City operations at a competitive price. The indirect benefits of this operation is a reduced cost to haul waste material to the landfill and also to reduce the amount of tipping fees paid to Larimer County. 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 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. ATTACHMENT 3 Utilities electric · stormwater · wastewater · water 700 Wood Street PO Box 580 Fort Collins, CO 80522 970.221-6700 970.221.6619 fax • V/TDD: 711 utilities@fcgov.com fcgov.com/utilities June 2016 Notice to customers and contractors working on commercial efficiency projects in Fort Collins Due to increased participation, funds for Efficiency Works’ electric efficiency rebates will be depleted in the very near future. Rebates for water projects remain available. Applications will continue to be pre-approved on a first-come first-served basis until funding is no longer available. When all funding is committed, new project submittals will be placed on a wait list. It is anticipated that additional funding will not be available in 2016, unless previously approved projects are canceled. When 2017 funding becomes available in January, rebates for efficiency projects will be considered from the wait list first, followed by projects submitted for 2017. Thank you for making this program a success and for supporting our community energy savings and climate protection goals. Visit efficiencyworks.co or contact Kelley Gonzales at 970-221-6857, kgonzales@fcgov.com or V/TDD 711 for more information. ATTACHMENT 4 1 CAP – Appropriation for Immediate Actions Jeff Mihelich, Kevin Gertig, Jackie Kozak Thiel, Mike Beckstead, Lucinda Smith, Lindsay Ex June 21, 2016 ATTACHMENT 5 Ordinance First Reading 2 • Current Progress § April - Four initiatives approved for funding § Summer – vetting of initiatives and development of messaging § Q4 – Council Work Session to review 2020 Plan • Tonight – update on two remaining initiatives and one appropriation § Energy Efficiency § Solar Incentives and Rebates § Municipal Green Waste (Composting) Sites Draft Roadmap to 2020 *Reductions are estimates and rounded to the nearest thousand 3 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 4 20% Reduction 80% Reduction Carbon Neutral Inventory Results Forecast 2015 Inventory: Emissions Goal 9% below 2005 CO2 Tons Energy Efficiency 5 Up to $1.46M Needed 2020 Impact: 230,000 CO2e Tons (46%) • Good news –Business energy efficiency incentives are nearly fully committed for 2016 § Implications – customer projects will be waitlisted for the remainder of 2016 • Funding Needs: § 1.46M (forecasted) – up to $1.37M for business rebates & $0.09M ($90,000) for Efficiency Works Neighborhoods Pilot in Q4 Energy Efficiency 6 • New Information: § Light and Power Fund – May have long-term reserve funding shortfalls § 2017/2018 Budget – Significant shortfalls from ongoing & capital offers § Year-end fund balance – Decrease from $18.4 à $16.4M Energy Efficiency 7 $118.1 ($56.9) $3.1 $2.1 $123.1 $3.1 $2.2 $136.8 $6.9 $8.2 $139.9 $9.7 $7.1 ($100.0) ($50.0) $0.0 $50.0 $100.0 $150.0 $ Millions 501 L&P 2017-18 Budget Energy Efficiency 8 Alternatives Explored § Future rate increase or use reserves § Partial funding § Redirect solar funding to energy efficiency § Postpone decision to evaluate comprehensive funding needs Energy Efficiency 9 Staff Recommendation § Postpone immediate funding decision • Pros: Allows consideration of L&P needs in broader context • Cons: • Slows implementation of efficiency investment and program momentum, • Loss of immediate efficiency gains, and • Uncertain business planning environment for customers and efficiency service providers. Solar Incentives and Rebates 10 Up to $350K 2020 Impact: 9,000 CO2e Tons (1.8%) • Good news – Existing program funds can be used in 2016 to support this program • Funding Needs: § No new appropriations needed § Will shift uncommitted funds in the Solar Power Purchase Program and Community Solar Program to meet these needs Municipal Green Waste (Composting) Site 11 $85,000 (One-Time) 2020 Impact: 100 CO2e Tons (1.9% of Municipal Pathway) • Good news – Through vetting, costs have decreased from ~$185K and one site will be installed • Funding Needs: § $85,000- One-time funding for capital equipment, staff training, and site preparation Municipal Green Waste (Composting) Site 12 Why this project? • Lead by Example • Restores former City operation • Diverts waste from the landfill and saves City dollars • Utilizes existing funding source: Waste Innovation Fund Initiatives Summary & 2016 Appropriation Request 13 Item Initiative Funding Recommendation 1 Energy Efficiency Postpone funding decision for 60-90 days 2 Solar Incentives and Rebates No new appropriation needed in 2016 3 Municipal Green Waste (Composting) Site $85,000 from Waste Innovation Fund Reserves* Total Request $85,000 *Current Balance of Waste Innovation Fund - ~$180K Next Steps 14 • Energy Board • 2nd Reading – July 5 • Review of the CAP Model (June 23) • Evaluate offers for the 2017-18 Budget Process • Continue to engage the public • Refine messaging Ordinance First Reading 15 • Current Progress § April - Four initiatives approved for funding § Summer – vetting of initiatives and development of messaging § Q4– Council Work Session to review 2020 Plan • Tonight – update on two remaining initiatives and one appropriation § Energy Efficiency § Solar Incentives and Rebates § Municipal Green Waste (Composting) Sites 16 CAP – Appropriation for Immediate Actions Jeff Mihelich, Kevin Gertig, Jackie Kozak Thiel, Mike Beckstead, Lucinda Smith, Lindsay Ex June 21, 2016 Light & Power Fund CIP 17 $- $2,000,000 $4,000,000 $6,000,000 $8,000,000 $10,000,000 $12,000,000 $14,000,000 $16,000,000 $18,000,000 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 Annual Capital Investment 501 - Light & Power Fund Operational Technology & Fiber Annexations New Capacity Substation Improvements Distribution System Improvements 2015 Operating Revenue not used for Purchased Power expense was $27.1M Capital Investment from Operating Revenues 18 33% 46% 35% 19% 19% 11% 10% 15% 9% 11% 7% 5% 7% 12% 13% 27% 6% 5% 6% 16% 10% 15% 30% 34% 0% 20% 40% 60% 80% 100% Light & Power * Water Wastewater Stormwater 2015 Expenses as % of Operating Revenues Operating Revenues Available for Capital Energy Services PILOTs Debt Service Other Transfers CS&A Operations * Purchased Power expenses, PILOTs associated with it and the necessary operating revenue for this expense have been removed for this table. Revenue Forecast – Light & Power 19 Assumes 3.2% Rate Increase 2017 and 2018 Light & Power 2017-18 Round 1 20 $118.1 ($56.9) $3.1 $2.1 $123.1 $3.1 $2.2 $136.8 $6.9 $8.2 $139.9 $9.7 $7.1 ($100.0) ($50.0) $0.0 $50.0 $100.0 $150.0 $ Millions 501 L&P 2017-18 Budget CAP Journey: Investments & Savings 21 • 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 -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 AS PART OF THE WASTE INNOVATION PROGRAM 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, 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 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. 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 5th day of July, A.D. 2016. __________________________________ Mayor ATTEST: _______________________________ City Clerk -3- Passed and adopted on final reading on the 5th day of July, A.D. 2016. __________________________________ Mayor ATTEST: _______________________________ City Clerk