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Home My WebLink AboutCOUNCIL - AGENDA ITEM - 07/21/2020 - FIRST READING OF ORDINANCE NO. 086, 2020, MAKING AAgenda Item 3 Item # 3 Page 1 AGENDA ITEM SUMMARY July 21, 2020 City Council STAFF Terra Sampson, Project Manager, Energy Services John Phelan, Energy Services Manager John Duval, Legal SUBJECT First Reading of Ordinance No. 086, 2020, Making a Supplemental Appropriation in Support of the Epic Homes Program for the Indoor Environmental Quality Study by Colorado State University. EXECUTIVE SUMMARY The purpose of this item is to appropriate $37,000 in grant funds from Bloomberg Philanthropies, as part of the Bloomberg Mayor’s Challenge, from the Fort Collins Utilities Light and Power Fund to be expended to pay a sub-grant to Colorado State University (CSU) for the indoor environmental quality (IEQ) study of Utilities’ Epic Homes Program. It also authorizes and approves the Services Agreement the City and CSU have entered into for the IEQ Study. The Bloomberg Philanthropies funds come from the second tranche of the 2020 grant installment. This item is presented to Council because the appropriation of these grant funds is necessary to enable Utilities, in collaboration with CSU, to move forward with the IEQ study for the Bloomberg Mayors Challenge grant project (the Epic Homes program). Epic Homes is a streamlined, affordable approach for single-family home and rental property energy efficiency upgrades to improve comfort, health and efficiency in Fort Collins. The City Manager recommends this appropriation and has determined that the funds are available and previously unappropriated from the Light and Power Fund and will not cause the total amount appropriated in the Light and Power Fund to exceed the current estimate of actual and anticipated revenues to be received in that fund during this year. STAFF RECOMMENDATION Staff recommends adoption of the Ordinance on First Reading. BACKGROUND / DISCUSSION Epic Homes In October 2018, Fort Collins became a winner of the 2018 Bloomberg Mayors Challenge and the associated $1 million prize. The 2018 Bloomberg Mayors Challenge involved over 300 cities proposing ideas to address important issues in their community. The City’s proposal, Epic Homes, was selected as a winner for its innovative approach to providing health and equity benefits to residents, specifically for low-to-moderate income renters, by improving the energy efficiency of rental homes. Residential property owners can take advantage of Epic Homes’ easy streamlined steps to make their homes more comfortable, healthy and efficient. In partnership with  Epic Homes,  Colorado State University  is also conducting an indoor environmental quality (IEQ) study  to improve our understanding of the connections between community health and well-being from energy efficiency upgrades. Agenda Item 3 Item # 3 Page 2 Epic Homes is a comprehensive portfolio for single-family home performance, for both owner-occupied and renter-occupied properties. Epic Homes includes energy assessments and rebates (Efficiency Works Homes), on-bill financing (Epic Loans), an indoor environmental quality and health/well-being study (IEQ Study), and documentation of home improvements (Epic Certificate). Detailed information regarding the Epic Homes program can be found at www.fcgov.com/epichomes. Bloomberg Mayors Challenge Funding The Bloomberg Mayors Challenge grant supports a three-year performance period from 2019 through 2021. The project includes a semi-annual review of the budget categories with an opportunity to revise the amounts, subject to the approval of Bloomberg Philanthropies. The second tranche of the 2020 grant installment for the Bloomberg award for $37,000 was received in June 2020 and will support a subgrant to CSU to implement the IEQ Study as part of the Epic Homes program. The grant agreement with Bloomberg Philanthropies has been signed and August 2019 the City and CSU entered into a Services Agreement for the IEQ Study. The Ordinance also authorizes and approves this Agreement retroactive to August 2019. CITY FINANCIAL IMPACTS The funds for appropriation have been received and are being held in the City’s Light & Power Fund awaiting this appropriation ordinance. The appropriation of these funds will enable Utilities, in collaboration with Colorado State University, to move forward with the IEQ Study as part of the Epic Homes Program with no financial exposure to the City. -1- ORDINANCE NO. 086, 2020 OF THE COUNCIL OF THE CITY OF FORT COLLINS MAKING A SUPPLEMENTAL APPROPRIATION IN SUPPORT OF THE EPIC HOMES PROGRAM FOR THE INDOOR ENVIRONMENTAL QUALITY STUDY BY COLORADO STATE UNIVERSITY WHEREAS, the City has previously established and funded a program to assist certain Electric Utility customers of Fort Collins Utility Services (“Utility Services”) in financing home- energy-efficiency and renewable-energy improvements for single-family residential properties they own by making loans to these customers, whether their properties are owner- or renter- occupied (“Epic Homes Program”); and WHEREAS, in 2018, the City was awarded a $1 million grant from Bloomberg Philanthropies (“Bloomberg”) to be used for the Epic Homes Program, which grant is being paid to the City under an agreement with Bloomberg that provides for certain annual payments to the City; and WHEREAS, the primary purpose of the EPIC Homes Program is to improve the energy efficiency of older homes, but it also provides the added benefits of making these homes more comfortable and healthier for the residents; and WHEREAS, Colorado State University (“CSU”), in partnership with Utility Services and in support of the EPIC Homes Program, will therefore be conducting an indoor environmental quality study (“IEQ Study”) to improve Utility Services’ understanding of the connections between community health and well-being and energy-efficiency upgrades; and WHEREAS, on August 15, 2019, the City and CSU entered into a Services Agreement agreeing to and setting forth the scope of services that CSU would provide the City in performing the IEQ Study (the “CSU Agreement”); and WHEREAS, the City has received from Bloomberg the 2020 grant payment which has been deposited in the City’s Light and Power Fund established in City Code Section 8-77 (the “Light & Power Fund”); and WHEREAS, there is $37,000 of these grant funds remaining unappropriated in the Light & Power Fund and available to fund the IEQ Study under the CSU Agreement; and WHEREAS, Article V, Section 9 of the City Charter permits the City Council, upon recommendation of the City Manager, to make supplemental appropriations by ordinance at any time during the fiscal year, provided that the total amount of such supplemental appropriations, in combination with all previous appropriations for that fiscal year, does not exceed the current estimate of actual and anticipated revenues to be received during the fiscal year; and WHEREAS, the City Manager has recommended the appropriation described herein and determined this appropriation is available and previously unappropriated from the Light and Power Fund and will not cause the total amount appropriated in the Light and Power Fund to exceed the current estimate of actual and anticipated revenues to be received in that fund during -2- any fiscal year; and WHEREAS, this appropriation benefits the public’s health, safety and welfare and serves and supports the utility and public purposes provided by the EPIC Home Loan Program of improving the energy efficiency of older homes in Fort Collins, thereby benefiting Electric Utility ratepayers, and improving the health, safety and comfort of the residents of the improved homes. 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 anticipated grant revenue in the Light and Power Fund the sum of THIRTY-SEVEN THOUSAND DOLLARS ($37,000) for expenditure from the Light and Power Fund to fund the IEQ Study being performed by CSU in support of the EPIC Homes Program under the CSU Agreement. Section 3. That the City Council hereby authorizes and approves the CSU Agreement retroactive to August 15, 2019, and further ratifies and reaffirms the services provided and payments made under it since August 15, 2019. Introduced, considered favorably on first reading, and ordered published this 21st day of July, A.D. 2020, and to be presented for final passage on the 4th day of August, A.D. 2020. __________________________________ Mayor ATTEST: _______________________________ City Clerk Passed and adopted on final reading on the 4th day of August, A.D. 2020. __________________________________ Mayor ATTEST: _______________________________ City Clerk