HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 10/06/2020 - SECOND READING OF ORDINANCE NO. 113, 2020, MAKING (2) Agenda Item 2
Item # 2 Page 1
AGENDA ITEM SUMMARY October 6, 2020
City Council
STAFF
John Phelan, Energy Services Manager
Cyril Vidergar, Legal
SUBJECT
Second Reading of Ordinance No. 113, 2020, Making Supplemental Appropriations and Authorizing Transfers
of Appropriations for the Northside Aztlan Resilience HUB Project.
EXECUTIVE SUMMARY
This Ordinance, unanimously adopted on First Reading on September 15, 2020, appropriates $200,000 in
Renewable and Clean Energy Challenge grant funds from the Department of Local Affairs (DOLA) for a project
to establish the Northside Aztlan Community Center (Aztlan Center) as a resilience hub. The City has been
notified of an award of $200,000 in support of energy and storage measures at the Aztlan Center to improve its
function as a resilience hub during community emergencies.
The total project cost is $425,000, which includes an additional $200,000 as a required local match, and
$25,000 for non-reimbursable project fees. The structure of the funding for the total project would use the
$200,000 in grant proceeds from DOLA, $200,000 for the required local match from the 2020 Energy Services
budget (already appropriated in the Light & Power Fund), and $25,000 for the non-reimbursable project fees
from the 2020 Municipal Innovation Fund (already appropriated in the Keep Fort Collins Great Fund). The
$200,000 for the local match from the 2020 Energy Services budget is available as a result of anticipated
underspend due to the COVID-19 pandemic.
STAFF RECOMMENDATION
Staff recommends adoption on Second Reading.
ATTACHMENTS
1. First Reading Agenda Item Summary, September 15, 2020 (w/o attachments) (PDF)
2. Ordinance No. 113, 2020 (PDF)
Agenda Item 6
Item # 6 Page 1
AGENDA ITEM SUMMARY September 15, 2020
City Council
STAFF
John Phelan, Energy Services Manager
Cyril Vidergar, Legal
SUBJECT
First Reading of Ordinance No. 113, 2020, Making Supplemental Appropriations and Authorizing Transfers of
Appropriations for the Northside Aztlan Resilience HUB Project.
EXECUTIVE SUMMARY
The purpose of this item is to appropriate $200,000 in Renewable and Clean Energy Challenge grant funds from
the Department of Local Affairs (DOLA) for a project to establish the Northside Aztlan Community Center (Aztlan
Center) as a resilience hub. The City has been notified of an award of $200,000 in support of energy and storage
measures at the Aztlan Center to improve its function as a resilience hub during community emergencies.
The total project cost is $425,000, which includes an additional $200,000 as a required local match, and $25,000
for non-reimbursable project fees. The structure of the funding for the total project would use the $200,000 in
grant proceeds from DOLA, $200,000 for the required local match from the 2020 Energy Services budget
(already appropriated in the Light & Power Fund), and $25,000 for the non-reimbursable project fees from the
2020 Municipal Innovation Fund (already appropriated in the Keep Fort Collins Great Fund). The $200,000 for
the local match from the 2020 Energy Services budget is available as a result of anticipated underspend due to
the COVID-19 pandemic.
STAFF RECOMMENDATION
Staff recommends adoption of the Ordinance on First Reading.
BACKGROUND / DISCUSSION
DOLA launched the Renewable/Clean Energy Challenge grant program in the summer of 2019 to spark efforts
in reaching Colorado’s 2040 100% renewable energy goal. Projects funded by this initiative should achieve
renewable energy, energy efficiency, and energy conservation efforts; support innovations in renewable energy;
achieve multiple objectives and/or serve those with the greatest need. Proposed projects were also to respond
to needs and opportunities identified by the local government. The grant requires a 50% match.
The City submitted a letter of intent in August 2019 and a complete application in December before the impact
of the coronavirus pandemic was felt on our community or facilities. The Aztlan Center has since served as a
shelter for vulnerable populations over the last several months. The recent use of the facility has been a
demonstration of a resilience hub; the Northside Aztlan Resilience Hub project would add capabilities for
operation in emergencies where the electric grid may also be impacted. This highlights the importance of
proceeding with projects such as this one, which will also provide active demonstration of additional distributed
generation and battery storage on an ongoing basis to minimize operational costs and provide electric grid
benefits. The battery storage system would remain a Light & Power-owned asset which can provide ongoing
benefits to the ratepayers via this project.
Given the current financial landscape, staff recommends the following approach:
ATTACHMENT 1
Agenda Item 6
Item # 6 Page 2
• Proceed with appropriating the full project amount of $425,000, funded from:
o $200,000 from the DOLA Renewable and Clean Energy Challenge grant, which would reimburse the
Light & Power Fund over the course of the project as expenses are incurred.
o $200,000 in local match funds from the 2020 Utilities Energy Services budget, which is available from
anticipated underspend due to the COVID-19 pandemic.
o $25,000 from the 2020 Municipal Innovation Fund, which is already appropriated in the Keep Fort Collins
Great Fund, to cover permit fees for building improvements, Poudre Fire Authority, and bonding required
by DOLA. Those costs cannot be covered with DOLA grant funds. Use of the Municipal Innovation Fund
accomplishes rapid deployment of the funding to support resilience, the municipal sustainability focus
on resilience for 2020, and on a project that benefits the community.
The CAP Executive Team, Utilities Senior Management, and the Executive Leadership Team each reviewed
and supported the above funding approach, as detailed in the proposed Ordinance.
• There are several internal project partners necessary to successfully execute this grant project, including
Operations Services, Recreation, Emergency Preparedness and Security, Environmental Services, Social
Sustainability and Utilities.
• The circumstances presented by COVID-19 have demonstrated the need for and viability of incorporating
resilience, efficiency, and innovation in providing services to the community.
No APP contribution is required. The project is limited to placement of a battery and associated equipment,
including potentially photovoltaic panels, located at, though not affixed to, the Aztlan Center. No structural
modification, remodeling or improvement of any building, structure, street, sidewalk, or other public improvement
are part of the project. As such, the project does not constitute “construction” under Chapter 23, Art. XII of the
City Code for purposes of including contributions to the Art in Public Places Fund in the project budget.
CITY FINANCIAL IMPACTS
The proposed appropriation can be funded while still meeting service area and department target reductions for
2020. The Light & Power Enterprise Fund will be reimbursed by the DOLA grant, resulting in no negative impact
to the enterprise fund.
BOARD / COMMISSION RECOMMENDATION
The Energy Board will receive a staff report on this project at its September 10, 2020 meeting.
ATTACHMENTS
1. State Acknowledgement of Application and Grant Award (PDF)
2. Grant Agreement Terms (PDF)
3. Scope of Project (PDF)
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ORDINANCE NO. 113, 2020
OF THE COUNCIL OF THE CITY OF FORT COLLINS
MAKING SUPPLEMENTAL APPROPRIATIONS
AND AUTHORIZING TRANSFERS OF APPROPRIATIONS
FOR THE NORTHSIDE AZTLAN RESILIENCE HUB PROJECT
WHEREAS, in the summer of 2019, the Colorado Department of Local Affairs (DOLA)
launched the Renewable/Clean Energy Challenge grant program to support energy efficiency
efforts that align with needs and opportunities identified by local governments and will help the
State of Colorado reach its 2040 100% renewable energy goal; and
WHEREAS, DOLA solicited Clean Energy Challenge grant projects with multiple
objectives that targeted renewable energy, energy efficiency, and energy conservation efforts;
supported innovations in renewable energy, and served populations with the greatest need; and
WHEREAS, in December 2019, before the COVID-19 pandemic impacted Colorado
communities and City facilities, the City filed a Clean Energy Challenge grant application detailing
a $425,000 project to create a resiliency hub at the Northside Aztlan recreation center by adding
off-grid energy storage and management capabilities through battery systems to enable operation
in emergencies where the electric grid may be impacted (“Northside Aztlan Resilience Hub
project”); and
WHEREAS, throughout 2020 in response to the COVID-19 pandemic, the City used the
Northside Aztlan Center property and facilities for waves of community sheltering and resiliency
service efforts, through which the City demonstrated the community need and viability of the
proposed Northside Aztlan Resilience Hub project; and
WHEREAS, DOLA selected the Northside Aztlan Resilience Hub project for a Clean
Energy Challenge grant award of $200,000, conditioned on a $200,000 local fund match by the
City, which staff has identified is available in the 2020 Utilities Energy Services budget from
anticipated underspending due to the COVID-19 pandemic; and
WHEREAS, accepting the DOLA grant funds and commitment of matching funds, in
conjunction with Keep Fort Collins Great monies and other community funding, to complete the
Northside Aztlan Resilience Hub project will serve utility ratepayers by enabling installation of
energy system features in a community emergency facility that will lower demands on the City’s
electric grid and leverage outside funding to reduce the financial impact on the Electric Utility
enterprise fund (“Light & Power Fund”) for the project; and
WHEREAS, appropriating the DOLA grant and other matching and complementary
financial resources described in this Ordinance to complete the Northside Aztlan Resilience Hub
project benefits public health, safety and welfare of the citizens of Fort Collins and serves the
public purpose of ensuring more stable standalone operation of the facility as a community
emergency resource center ahead of the next pandemic or emergency; and
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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 that this appropriation is available and previously unappropriated from the Light &
Power Fund and will not cause the total amount appropriated in the Light & Power Fund to exceed
the current estimate of actual and anticipated revenues to be received in that fund during any fiscal
year; and
WHEREAS, Article V, Section 10, of the City Charter authorizes the City Council, upon
recommendation of the City Manager, to transfer by ordinance any unexpended and unencumbered
appropriated amount or portion thereof from one fund or capital project to another fund or capital
project, provided that the purpose for which the transferred funds are to be expended remains
unchanged, the purpose for which the funds were initially appropriated no longer exists, or the
proposed transfer is from a fund or capital project in which the amount appropriated exceeds the
amount needed to accomplish the purpose specified in the appropriation ordinance; and
WHEREAS, the City Manager has recommended the transfer of $25,000 from the Keep
Fort Collins Great Fund to the Light & Power Fund for the Northside Aztlan Resilience Hub
project and determined that the purpose for which the transferred funds are to be expended remains
unchanged; and
WHEREAS, the City Manager has recommended the transfer of $200,000 from the
Utilities Energy Services operating budget to the Northside Aztlan Resilience Hub project and
determined that the proposed transfer is from an account in which the amount appropriated exceeds
the amount needed to accomplish the purpose specified in the appropriation ordinance.
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 unanticipated grant revenue in the
Light & Power Fund the sum of TWO HUNDRED THOUSAND DOLLARS ($200,000) for
expenditure in the Light & Power Fund for the Northside Aztlan Resilience Hub project and
appropriated therein.
Section 3. That the unexpended and unencumbered appropriated amount of TWENTY
FIVE THOUSAND DOLLARS ($25,000) is hereby authorized for transfer from the Keep Fort
Collins Great Fund to the Light & Power Fund for the Northside Aztlan Resilience Hub project
and appropriated therein.
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Section 4. That the unexpended and unencumbered appropriated amount of TWO
HUNDRED THOUSAND DOLLARS ($200,000) is hereby authorized for transfer from the
Energy Services operating budget to the Northside Aztlan Resilience Hub project.
Section 5. That the DOLA Renewable/Clean Energy Challenge grant program terms
and conditions, as provided to the City, are approved and agreed to as a condition of accepting the
grant funds without entering into a separate grant contract or intergovernmental agreement with
the State.
Introduced, considered favorably on first reading, and ordered published this 15th day of
September, A.D. 2020, and to be presented for final passage on the 6th day of October, A.D. 2020.
__________________________________
Mayor
ATTEST:
_______________________________
City Clerk
Passed and adopted on final reading on the 6th day of October, A.D. 2020.
__________________________________
Mayor
ATTEST:
_______________________________
City Clerk