HomeMy WebLinkAboutresolution.council.013-02 RESOLUTION # ~ ~
(SERIES OF 2002)
A RESOLUTION OF THE CITY OF ASPEN, COLORADO AUTHORIZING
SPENDING FUNDS GENERATED THROUGH THE
RENEWABLE ENERGY MITIGATION PROGRAM
WHEREAS, on December 13, 1999, City Council approved Ordinance No.55
adopting the Aspen/Pitkin Energy Conservation Code, and
WHEREAS, the Aspen/Pitkin Energy Conservation Code allows that the funds be
spent in accordance with a joint resolution by the Aspen City Council and the Pitkin
County Board of County Commissioners, and
WHEREAS, pursuant to the Agreement, the Board of the Community Office of
Resource Efficiency approved a number of spending proposals, and
WHEREAS, the spending proposals meet the screening criteria of affordable housing,
cost-effectiveness, public visibility and education, environmental benefits, energy
efficiency, leverage, unique opportunity, new technologies and green design, and
WHEREAS, the Renewable Energy Mitigation Fund has a balance of approximately
$900,000 and the total of the proposed expenditures equals $260,000.
NOW, WHEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF ASPEN, COLORADO:
Section 1:
The Aspen City Council does hereby authorize the Community Office of Resource
Efficiency to negotiate and secure contracts and manage the installation and/or
implementation of the following projects:
1) Efficient Building Education Program, $25,000 Pitkin County and the City of
Aspen are currently evaluating whether to adopt an Efficient Building standard for
new residential construction. As part of that effort, CORE is developing an
Efficient Building Design Guide for architects and contractors. This money
would pay to print that guide, distribute it, and organize a series of seminars and
workshops for builders, architects, and contractors.
2) Pitkin County Lighting Retrofit, $30,000 This money would pay to retrofit the
lights in the Health and Human Services building and the Pitkin County jail. The
lighting design work for these two public buildings has been completed.
3) Stillwater Affordable Housing Project, $20,000 This money would pay to
improve the energy efficiency of the Stillwater Affordable Housing units. We
have allocated $1,250 per unit to help purchase more efficient refrigerators,
clothes washers, and other appliances; to install direct-vented range hoods; and to
upgrade the units' lighting systems.
4) Wind Power from Holy Cross, $30,000 In terms of greenhouse gas abatement,
one highly effective use of REMP funds is to purchase wind power from Holy
Cross Energy. This money would purchase an additional 300 blocks---or one
million kilowatt-hours--of wind power over the next three years. This will keep
about 2 million pounds of carbon dioxide out of the air. We will work with Holy
Cross to get area businesses to match, on a 1:1 basis, this purchase.
5) Wagner Park Photovoltaic System, $15,000 This would help pay for a high-
visibility PV system at Wagner Park. The City of Aspen Parks Department and
the Ski CO's Environment Foundation are also providing funds for this project.
6) Solar Hot Water Incentives, $20,000 This money would enable us to continue
an existing incentive program that provides $1,000 to homeowners who install
solar hot water systems. The current program has proved popular with
homeowners at the North Forty and elsewhere. A single solar hot water system
keeps up to 7,000 pounds of carbon dioxide out of the air each year.
7) Climate Change Mini-Grants, $10,000 This program provides small grants,
from $200 to $1,000, to schools, area nonprofits, and businesses for worthwhile
projects that save energy, reduce greenhouse gas emissions, or have educational
value. Previous recipients have included Yampa Mountain High School, Aspen
Global Change Institute, Solar Energy International, and the Science Outreach
Center. The Mini-Grant program has proved popular and we would like to
continue it.
8) Truscott Solar Hot Water, $40,000 This money would pay to install solar hot
water systems on the multi-family housing now under construction at Truscott.
9) Advertising & Promotion, $5,000 This money would be used to advertise and
promote six REMP projects that target citizens and businesses. They include the
Climate Change Mini-grant program, Solar Photovoltaic and Solar Hot Water
programs, Efficient Washer Rebate program, Car Sharing program, and the
Commercial Lighting Retrofit program.
10) CORE Administration Fee, $65,000 The CORE Board has asked the BOCC
and City Council to approve a change in how CORE is compensated for its REMP
work. This proposal has been described at length in a separate memo.
Section 2:
The Community Office of Resource Efficiency will report quarterly to the Aspen City
Council regarding the progress and completion of the approved projects.
Dated: February 25, 2002
I, Kathryn S. Koch, duly appointed and acting City Clerk do certify that the foregoing is a
true and accurate copy of that resolution adopted by the City Council of the City of
Aspen, Colorado, at a meeting held February 25, 2002.
MEMORANDUM
To: Aspen City Council
From: CORE Director Randy Udall and CORE Board of Directors
Subject: CORE's Compensation for Renewable Energy Mitigation Program
Date: February 7, 2002
Proposal The CORE Board would like to meet with the BOCC and City Council to
discuss changing how CORE is compensated for its work on thc REMP program. Instead
of the current 10% administration fee CORE receives for each REMP project, we would
like to ask the BOCC and Council to consider approving an annual fee of $65,000 for
fiscal years 2002 and 2003. This would enable CORE to dedicate a full-time staff person
to the REMP workload, which has mushroomed enormously.
A Huge Success REMP has beeri a spectacular success. No other community in the
world is doing anything like it. Current REMP projects will avoid 24,000,000 pounds of
greenhouse gases over the next ten years. The program has been featured in the Journal
of Light Construction, Natural Home, Environmental Building News, and The New York
Times. Early estimates were that the REMP fund would collect $100,000 to $200,000 per
year. In fact, REMP is now raising $200,000 every three months. Mom than $1.5 million
has been collected, and REMP is now funding fifteen different projects.
Changing Workload When REMP began in January 2000, the assumption was that it
would collect a modest amount of money and thus pose a modest increase in CORE staff
time. The BOCC and City Council agreed to pay a 10% "administrative fee" to CORE for
managing the REMP program. CORE has collected $24,000 in fees during the last two
years. We are currently working on $450,000 in additional REMP projects, which
represents another $45,000 in CORE fees. Although CORE staffers Randy Udall and
Joan Matranga have thoroughly enjoyed working on the REMP program, the program's
success has expanded our workload enormously.
What we have discovered is that the 10% administrative fee does not fully compensate
CORE for the work involved in making the program a success. Developing and
administering REMP proposals has turned out to be a relatively small part of the job.
Because the area of green building technology and application of energy efficient and
renewable energy technologies is relatively new and rapidly evolving, CORE staff often
must provide technical expertise to the professionals involved in the REMP projects. To
ensure the success of some REMP projects, CORE staff must also research materials and
energy solutions, advise engineers, and provide contractor oversight.
One Example Iselin provides a good example of how the job has changed. From an
engineering perspective, the Iselin Pool/Rink is tremendously complex. The building's
annual energy bills were first estimated at $250,000. Our goal is to save 15-30 % through
better design. Since September 2000, Matranga and Udall have spent hundreds of hours
helping to design and troubleshoot the building's mechanical systems, advise on
insulation and glazing materials, and resolve technical issues related to the building shell
and Capstone cogeneration system. In the process we discovered that we often have
greater expertise in green design, materials selection, and energy performance than
"experts" hired to do the job at $90-200/hour.
Improving Iselin's performance has required CORE's active, consistent, and detailed
involvement. We worked initially with engineer Dave Houghton to understand the
mechanical systems in the building and identify opportunities to save energy; then
reviewed the initial mechanical designs for the project with Keen Engineering; we then
directed Keen's engineers to provide additional energY calculations in Order to select
energy saving features; hired Robert Sardinsky of Rising Sun to review and improve the
lighting specifications; hired Ensar to develop a daylighting scheme for the pool and rink;
selected a Capstone micro-turbine to help power and heat the building; helped engineer
the Capstone installation through discussions with its supplier and Keen; specified the use
of Veissmann boilers in the building, after visiting similar installations at Copper
Mountain; reviewed material specifications to identify opportunities for greening the
building and prepared written recommendations for the bid packet; investigated the use of
a low-E ceiling, then contacted a supplier for bid and design assistance; and so forth.
Iselin isn't finished yet, but when it is we will be actively involved in commissioning the
building's energy systems.
Although Iselin has been the most time-consuming REMP project, CORE is now
administering fifteen other REMP initiatives, with more to come. Some projects, like our
rebate programs for energy-efficient clothes washers and solar hot water systems, need to
be marketed and promoted, not just administered. Others, like our Green Points program,
require CORE to write design guidelines, set up architect and builder training seminars,
and research how other communities have done it. We are working closely with Holy
Cross Energy to develop new small hydropower sites, a wonderful use for REMP money,
but another time-consuming process. Looking ahead, if the Burlingame Ranch proceeds,
there will clearly be a need for CORE's close, continual involvement there.
The CORE Board's Perspective REMP has been a success, but the scale of the
endeavor, the challenge of putting REMP funds to the best possible use has begun to
swamp CORE's two-person staff. As a small non-profit, CORE must ensure that our staff
time is compensated by either fees or grants. Some of CORE's funders (who include
Holy Cross Energy, Aspen Municipal Electric, Turner Foundation, US DePartment of
Energy, and National Renewable Energy Laboratory) are concerned that the REMP
workload is preempting other CORE contracts.
At a recent CORE retreat, board members Patti Clapper, Bob Gardner, Phil Overeynder,
Alice Hubbard, Carey Shanks, Terry Paulson, and Rebecca Wallace discussed this
challenge. The Board decided to ask the BOCC and City Council to consider adjusting
the way CORE is compensated for its REMP services.
A New Compensation Proposal
Managing the REMP program is no longer a part-time job. With $450,000 in authorized
but uncompleted projects, $800,000 in unallocated reserves, and $200,000 in new money
being collected every three months, this program needs and deserves a dedicated staff
person. For that reason, the CORE Board would like the BOCC and City Council to
consider authorizing $65,000 in REMP compensation fees for fiscal year 2002 and 2003.
We propose to revisit this arrangement in 2003. In return, CORE will dedicate a full-time
2
staff person to the REMP program. That person's salary would be $45,000 per year.
Managerial oversight would continue to be provided by Randy Udall, CORE Director,
and the CORE Board. The job objectives would include:
· Develop new REMP proposals with citizens and city and county staff.
· Manage and administer current REMP projects, including Iselin, Stillwater, the
High School, the Green Points program, etc.
Provide technical expertise on energy efficiency, building materials, and related
issues to affordable housing projects.
· Oversee contractors when necessary to ensure REMP project quality control.
· Develop marketing and advertising materials for consumer-oriented REMP
projects.
· Establish a REMP policy for small scale hydro projects.
· Work with Holy Cross and Aspen Municipal Electric to develop a revolving loan
program for consumers and businesses that want to make efficiency
improvements.
· Promote REMP to architects, builders, and other local, state, and national
audiences.
· Provide financial accounting and management for the REMP program.
· Compile a semi-annual REMP Update for the BOCC and City Council, including
income, expenditures, and pollution benefits.
We look forward to discussing this issue with you.
RENEWABLE ENERGY MITIGATION PROGRAM
2001 ANNUAL REPORT
In January 2000 the Pitkin County Commissioners and Aspen City Councit approved the
Renewable Energy Mitigation Program (REMP). The program assesses fees on new homes that
exceed the energy "budget" established by the Aspen/Pitkin Energy Code. In its first two years,
REMP collected $1,507,347.
To date, three REMP spending proposals--allocating $666,600 to fifteen different projects--
have been authorized by the BOCC and City Council. These projects will keep an estimated
24,000,000 pounds of greenhouse gases out of the atmosphere over the next ten years.
The REMP program is, we believe, the first of its kind in the world. It has been featured in local
papers tike the Aspen Times and in national trade journals including the Environmental Building
News, Journal of Light Constructionl and Natural Home. The New York Times also mentioned
the program in an article about green homes. The remainder of this report summarizes the current
status of REMP.
OVERVIEW REMP is run through a partnership between the Community Development
Department and the Community Office for Resource Efficiency (CORE). REMP fees are
collected by the Community Development Department when building permits are issued. The
money is held by the City of Aspen's Finance Department until the BOCC and City Council
approve a REMP spending proposal. Those proposals are developed by CORE's staff and its
Board of Directors. CORE board members include Patti Clapper representing BOCC, Terry
Paulson (Aspen City Council), Phil Overeynder (Aspen Utilities Director), Bob Gardner (Holy
Cross Energy), Carey Shanks (Snowmass Village), Rebecca Wallace (Energy 2000 Committee),
Bill Stifling (former Mayor), and Alice Hubbard (RFTA).
To date, three REMP spending proposals, allocating $666,600 to fifteen different projects, have
been authorized by the BOCC and City Council. Once a proposal has been approved, CORE
invoices the City for the appropriate amount. Until CORE disburses the money, it is held in a
restricted, interest-bearing account at Community Bank of Aspen. CORE's accountant is Bill
Hofto of Otte and Cote, CPAs.
RATE OF COLLECTIONS REMP fees were received at a slower pace in 2001. In round
numbers, we collected $850,000 in 2000 and $650,000 in 2001. The slowdown may reflect the
soft economy and perhaps a better understanding by contractors of design techniques that can
reduce or eliminate REMP fees. In 2002, it is possible we may see another modest reduction in
REMP fee collections.
PROJECT SELECTION CRITERIA The authorizing legislation said that REMP fees were
to be spent on renewable energy and energy efficiency projects. CORE staff and board members
use a variety of screening criteria, including:
Affordable housing andpublic buildings. Spend REMP funds to lower utility bills at
new and existing affordable housing projects and civic buildings.
· Environmental Benefits. Fund projects that reduce greenhouse gases and offer other
environmental benefits.
· Cost-effectiveness. Support projects that have a good bang for the buck.
· Leverage. Use REMP dollars to leverage private investments.
· Public Visibility & Education. Support visible projects.
· Unique Opportunity. Seize unique opportunities when they arise.
· Build Markets. Help develop new markets for renewable energy.
· New Technologies. Help renewable and efficiency technologies to gain a toehold in
valley.
· Green Design. Better design is a cost-effective way to save energy.
Everyone involved with the program recognizes that REMP fees are public money that must be
spent wisely. Since the program is young, CORE has tried to be flexible and creative in
generating spending proposals. Our original estimates were that the fund would collect $100,000
to $200,000 per year. Instead, it is raising about $65,000 per month. Of the $660,600 the BOCC
and City Council has authorized CORE to spend, $216,137 has been disbursed; the remainder is
being held pending completion of various projects. (See the attached spending report.)
A "PORTFOLIO" OF PROJECTS In the first two years of the REMP program, we have
developed a "portfolio" of projects that promote renewable energy and energy efficiency. Since
there are many ways to achieve REMP's stated goals, a diverse set of projects seems to make
sense. Because REMP funds are used to offset the negative impacts of energy use, one metric we
use for evaluating projects is "pounds of greenhouse gas avoided." We try to quantify this
number as best we can for each individual project. A snapshot of the individual REMP projects
follows. For additional details, please contact Randy Udall or Joan Matranga at 544-9808. Or
email us at core~aspeninfo.com
FIRST SET OF REMP SPENDING APPROVALS In June 2000, the BOCC and City Council
approved spending $165,000 on the following projects.
Green Design, $20,000 The bulk of this money was spent to develop an energy
efficient lighting design for the Iselin Pool/Rink. The remainder was used to improve the
design of the mechanical systems that will be installed in the building. (The combination
of a tropical pool environment next door to an Arctic hockey environment poses
considerable design challenges.)
Burlingame Solar Hot Water, $60,000 Solar hot water panels were installed on five
buildings at the Burlingame/MAA affordable housing complex. This work has been
completed and was featured in The Asl~en Times. Due to construction issues beyond our
control, the work cost $4,467 more tban the $60,000 budgeted. The shortfall was covered
with interest earned in CORE's REMP money market fund.
Ruedi Hydro Project, $10,000 Two homeowners installed an 18-kilowatt hydropower
system on Ruedi Creek in the Fryingpan drainage. The system was operational in
February 2001. In its first calendar year, it produced 150,000 kilowatt-hours of clean
power, thus keeping about 300,000 pounds of carbon dioxide out of the air. CORE and
Holy Cross are developing other small hydro projects that should be equally exciting.
Zero Interest Loans, $20,000 CORE offers zero-interest loans on solar hot water and
solar photovoltaic systems. Community Bank of Aspen originates the loans. This
program has not been advertised, and as a result we've made only one loan so far. The
next time CORE meets with the BOCC and Council, we wit[ ask permission to spend
modest amounts of REMP dollars on marketing.
Solar Photovoltaic Incentives, $20,000 CORE pays a 25C/kwh "solar production
incentive" on grid-connected PV systems. This program is the only one of its kind in
Colorado, and one of two in the nation. As a result of this program, which builds on
earlier CORE efforts, Holy Cross has more grid-connected PV systems than any of the
930 rural electric utilities in America.
Solar Hot Water Rebates, $10,000 CORE pays a $1,000 rebate to homeowners who
install solar hot water systems. This program, the only one of its kind in Colorado, has
proved popular; 10 homeowners have qualified. The solar systems you see from the
highway at the North Forty were supported with REMP dollars. A solar hot water system
will keep up to 7,000 pounds of carbon dioxide out of the air each year. CORE will
request REMP additional funds to continue this program.
Climate Change Mini-Grant Program, $10,000 REMP makes small, discretionary
~'ants up to $1,000 to schools, other area nonprofits, and, in rare cases, private parties for
worthwhile projects that save energy, reduce greenhouse gas emissions, or have
educational value. We have made small grants to Yampa Mountain High School, Rocky
Mountain Permaculture Institute, Aspen Global Change Institute, Solar Energy
International, and the Science Outreach Center. This program is an opportunity for
REMP to support imaginative and educational projects that will advance energy
efficiency and renewable energy. For example, next fall the U.S. Department of Energy
is hosting a Solar Decathalon in Washington, DC. Teams representing 12 universities
will design and erect actual solar homes on the Mall and then "race" them against each
other. REMP is supporting the CU team with $1,000. The Mini-Grant program has
proved popular and we will request funds to continue it.
SECOND SET OF REMP SPENDING APPROVALS In December 2000, the BOCC and
Council approved a second batch of REMP projects totaling $166,100. They included:
Capstone Turbine, $55,000 REMP funds will pay to install a cogeneration system at
the Iselin Pool/Rink complex. This will be the first installation of its kind in the Roaring
Fork Valley. The Capstone turbine will burn natural gas to produce electricity; the hot
exhaust will then pass through a heat exchanger to heat the pool water. Because the waste
heat at typical power plants is vented to the atmosphere, they tend to only be 35%
efficient. This cogen system should be 75% efficient, and by displacing coal po~ver, it
will keep 250,000 pounds of dioxide out of the air each year. Micro4urbines could be
used widely in the Valley, at hotels, schools, shopping centers, office complexes, etc.
Green Design, $30,000 Most of this budget has been earmarked to support the
development of an efficient building code in Aspen and Pitkin County. We also hired
EcoBuild to develop a set of green building strategies and natural materials for affordable
housing projects. REMP also paid to develop a stronger energy code for the Town of
Basalt
TOSV-Brush Creek, $23,000 Snowmass Village asked for REMP fund assistance to
install solar hot water systems and better boilers at an affordable housing complex. Since
the Town has decided not to go ahead with the project, this money has been refunded
back to the REMP general fund.
Lighting Retrofits, $20,000 This program provides rebates for energy-efficient lighting
retrofits. As a first step, the REMP funds helped catalyze two retrofits at the Aspen
Skiing Company's Little Nell hotel. Together, they will keep about 500,000 pounds of
carbon dioxide out of the atmosphere each year. Since many lighting retrofits are
extremely cost-effective, there is an opportunity to expand this program's funding and
raise its profile to enable more businesses to take advantage of it.
PV Project at Wagner Park, $8,000 KEMP funds will pay part of the cost ora high-
visibility PV system at Wagner Park. CORE also received a grant from the Ski CO's
Environment Foundation to support this project. The City of Aspen Parks Department is
supporting half the system cost. To fully fund this project, we will request an additional
$15,000 from KEMP.
Efficient Washer Rebate Programs, $15,000 KEMP provides $100 rebates to Pitkin
County residents who purchase and install water- and energy-efficient clothes washers.
Although only lightly advertised, this program has proved popular with 17 incentives
paid. As with the Solar Loan Program, marketing will make this program more visible.
THIRD SET OF REMP SPENDING APPROVALS In May 2001, the BOCC and Council
approved a third batch of REMP Projects totaling $335,500. The bulk 0fthat money is funding
energy efficiency upgrades at the new Aspen High and Iselin Pool/Rink complex.
Iselin Pool/Rink, $205,000 The BOCC and Council approved a package of spending
proposals that will make this building much more energy efficient. CORE has been
working with the project team to finish the engineering and implement the approved
measures. The highest efficiency motors and Viessmann boilers will be installed. We are
designing a solar hot water system, a heat recovery system, and a natural ventilation
system. A low E-ceiling wilt be added after the rink is completed. KEMP funds have
already been used to landscape the Iselin campus and install a high efficiency watering
system. KEMP funds will pay to Commission the building after it is finished to determine
the best way to operate it.
Aspen High School, $70,000 KEMP funds were earmarked for improvements to the
new Aspen High School, including a daylighting study, better glazing, and mechanical
upgrades. The daylighting study is completed. Daylighting strategies are being added to
the building, including light shelves and improved glazing.
Car Sharing, $30,000 Car Sharing KEMP funds are helping jumpstart the City of
Aspen's car sharing program. Modeled after similar programs in dozens of European and
US cities, the program is in its first year here. One car has been purchased, and a second
will soon be ordered. About 20 people are participating in the program.
CORE FEES CORE receives a 10% administration fee for developing and administering KEMP
projects. Since the progran~ began in January 2000, CORE has collected $24,000. On complex
projects like the Iselin Pool and Aspen High School, the 10% fee is inadequate tO reimburse us
for the considerable staff time we have spent developing and implementing these projects. We
have become consultants to the projects and not just "administrators". We will discuss this issue
more fully in a separate memo to the BOCC and Council.
ADDITIONAL INFORMATION A sample of newspaper and magazine articles about the
REMP program are attached. If you would like mom information about any aspect of the REMP
program, please contact CORE's Randy Udall or Joan Matranga. CORE's phone is 544-9808 or
core~aspeninfo.com. Stephen Kanipe, Chief Building Official in the Community Development
Department, is also familiar with program details.
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