R2011-10 AUTHORIZING AGREEMENT WITH AGRICULTURAL WATERSHED INSTITUTE

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DEPARTMENT OF WATER MANAGEMENT � ' Memorandum No. 2011-03 January 28, 2011 TO: Honorable Mayor Michael T. McElroy and City Council FROM: Ryan P. McCrady, City Manager Keith D. Alexander, Director of Water Management � SUBJECT: Agricultural Watershed Institute Local Bioenergy Initiative Agreement SUMMARY RECOMMENDATION: Council adopt the attached resolution authorizing a two year Local Bioenergy Initiative Financial Support Agreement with the Agricultural Watershed Institute (AWI) at a fixed cost of$104,000. BACKGROUND: In January 2009 a two year $129,960 Local Bioenergy Initiative Agreement with AWI was approved by Council. This agreement expires on January 31, 2011. Due to budget constraints the City requested of AWI that funding for the agreement be reduced by $11,913 (20%) effective May l, 2010. Important reasons why the 2009 agreement was approved included: • It may lead to additional Lake Decatur watershed soil and water quality improvements. • It may lead to a more diverse and productive agricultural landscape that may benefit many Decatur businesses. • It may lead to widespread, positive recognition of AWI and Decatur in various journals and publications. • It may assist in reducing our nation's reliance on imported fuels. • The City's financial support was to be matched at least one-to-one by the Lumpkin Foundation and other sources. Since January 2009 AWI has made substantial progress in these areas, including obtaining grants from the Lumpkin Foundation ($35,000), Walton Family Foundation ($200,637) and Illinois Department of Commerce and Economic OpportuniTy ($49,900). The Initiative's goals for the next two years are: • Assist local farmers and landlords that want to begin growing energy grasses. • Develop and demonstrate landscape design concepts. • Develop markets for energy grasses and related benefits. A substantial portion of the Initiative's scope of work was also included in the recently completed Decatur Sustainability Plan. Due to AWI's progress during the first two years of the Initiative, City Staff recommend that funding be continued for another two years. POTENTIAL OBJECTION: None foreseen.