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HomeMy WebLinkAboutElectric Board - Minutes - 05/19/1999Council Liaison: Scott Mason Staff Liaison: Shannon Turner - 221-6700 (W) Chairperson: Len Loomans Phone: 224-0385 (W/H) Vice Chair: Tim Welch Phone: 498-8947 (W/H) A regular meeting of the Fort Collins Electric Board was held at 5 p.m. on Wednesday, May 19, 1999 in the Utilities Training Room at 700 Wood Street, Fort Collins, Colorado. BOARD PRESENT: Jeff Eighmy, Len Loomans, Barbara Rutstein and Richard Smart BOARD ABSENT: Bill Brayden, Mark Fidrych and Jim Welch STAFF PRESENT: Lori Clements -Grote, Eric Dahlgren, Mike Smith, Dennis Sumner and Shannon Turner GUESTS: Lucinda Smith, Natural Resources Department OBSERVER: Lu Fisk of the League of Women Voters APPROVAL OF MINUTES: Changes to the April 21, 1999 minutes were proposed. Board Member Rutstein made a motion to approve the minutes as amended. Board Member Smart seconded the motion. The motion passed unanimously, and the minutes from the April 21,1999 meeting were approved. DRAFT LETTER ON WIND CREDITS: Board Members felt the draft memorandum from Platte River Power Authority (PRPA) included the items of concern. Mike Smith noted the Memorandum of Understanding would be on the May PRPA Board agenda. A proposed change to the Memorandum of Understanding was to have portfolio standards be included as part of environmental credits. Board Member Eighmy made a motion to adopt the Memorandum of Understanding. Board Member Rutstein seconded the motion, and the motion passed unanimously. DISCUSSION OF BOARD'S OFFICIAL RELATIONSHIP WITH PLATTE RIVER: Staff and Board Members discussed the Board's relationship with PRPA. More specifically, the City staff and PRPA staff are concerned about the Board's involvement in PRPA issues, which are not City policy issues. There needs to be a balance of input from the Electric Board and information shared by PRPA. Mike noted it is the Utilities job to provide the Board with information staff feels is necessary or is an important issue. If the Electric Board is aware of the issues, they can better assess whether the issue is valid or whether the Board is trying to micro manage. There was a discussion regarding the fact that PRPA is owned by the four cities, and was noted that their goal is to provide reliable low cost energy. Some Board Members feel that low cost is not the most important factor but rather how the environment is affected. Staff noted it is PRPA's understanding that the four cities want low cost reliable power and often the two views do not coincide. Staff explained Fort Collins Utilities and PRPA have three other partners to consider when making decisions. An issue was raised regarding how the Board could go about informing the other three cities of their environmental concerns. Other communities may not hold the same opinion as the Fort Collins Electric Board, and low cost may be their only concern. PRPA must listen to all four cities, and they are under the impression that low cost and reliable power is the main concern. There was some discussion regarding how deregulation could effect environmental issues. In general, the open market has rarely volunteered to improve upon the environment because of the costs. The unfortunate thing about deregulation is that often we lose control. There was agreement that the Board should inform the other three cities of their environmental concerns. Suggestions to communicate with member cities included sending a Board Member to one of the other three city board meetings or conducting open forums. It was noted the councils and boards of the four cities do not communicate. Mike volunteered to share the Electric Boards feelings on this issue with Brian Moeck. Board Members expressed an interest in establishing a better relationship with PRPA. Mike agreed to provide the Board with a written summary of the PRPA Board meetings. OTHER BUSINESS: There was a discussion regarding City Council and Electric Board interaction. Board Members feel they should have a representative from City Council so they can better understand the issues Council is addressing. It was noted that Scott Mason is Council's representative to the Electric Board. Board Members suggested they be the driving force for communications between Council and the Board. Staff explained John Fischbach would be meeting with Council regarding communication issues. Board Members discussed the Regional Haze memorandum from PRPA. There was a question regarding whether PRPA is paying lobbyists to lobby against these regulations. Some Board Members felt the memo should have been written in a non -judgmental manner. -2- There was some discussion regarding Fort Collins representation on the PRPA Board. PRPA By Laws state the Mayor or the Mayor's designee and someone qualified to be a utility director can sit on the Board. Mike Smith currently sits on the PRPA Board as the Utilities General Manager. The newly elected Mayor, Ray Martinez, or his designee will be the other member. Board Members felt that whoever serves on the PRPA Board should be both interested and committed. Board Members were of the opinion that Scott Mason should discuss this issue with Mayor Martinez. Board Member Rutstein attended a seminar on the Carver Model and provided the Board with an overview. The seminar covered issues regarding how advisory and non-profit boards should operate. The Carver Model states that the Board is appointed by Council and takes direction from Council. Staff is assigned to the Board to carry out the tasks that Council assigns to the Board. The yearly work plan is basically the Board's assignment from Council. The model questions the role of a Council Liaison because they may represent themselves rather than the whole Council's view. The goal of the model is to try very hard to keep distinct the lines between advising Council and micro -managing. The Council informs the Advisory Board of the issues it wants researched and staff helps the Board get information and advice to Council. CITIES FOR CLIMATE PROTECTION: Lucinda Smith gave the Board a presentation on the City's Climate Protection (CCP) project. Her presentation concerned a draft of the Local Action Plan based on measures identified by the staff technical team and/or the Citizen Advisory Committee. After receiving input based on comments from the public and various targeted Boards, a recommendation will be made to City Council. The purpose of her presentation was to get the Board's input in the following areas: • Does the Board endorse some or all of the proposed measures? • Are there any measures the Board would like to highlight as important? • Are there measures that should not be considered any further? • What reduction target should Council adopt? Lucinda provided a brief overview on the background of the CCP campaign and explained how the City of Fort Collins became involved. The committee includes members of a core team, the staff technical team and the Citizen Advisory Committee. Based on the Fort Collins 1990 greenhouse gas audit,1.36 million tons of COzwill be emitted. Electricity was the largest CO, emission source, followed by Transportation and Natural Gas. The 2010 emissions are predicted to increase 159 percent over 1990 levels. If actions are not taken to reduce greenhouse gases, transportation will have the largest emissions increase, followed by electricity, solid waste and natural gas. The completed measures for CO, reduction show that recycling will have the largest benefit, with about 82,000 tons of CO, saved in 2010. The reductions affecting the Utilities include methane flaring at the Water Reclamation Facility, (31,400 tons), electric distribution improvements, (15,000 tons) and the wind power program at (4,000 tons). The draft plan also includes several potential new measures, including two suggestions that could affect the Utilities Wind Power Program. Lucinda explained the draft plan includes -3- Wind Phase I, which is the existing wind power program, Wind Phase a and Wind Phase III. The Wind Phase II program consists of the addition of 2.5 turbines, which the City has already committed to. One of the turbines has been dedicated to New Belgium Brewery for a 10-year commitment, the other turbine will be marketed to voluntary subscribers, and the 1h turbine will be used for the programs' oversubscribed customers. Wind Phase III is dependent on circumstances that extend from the existing pilot power program and the success of the wind turbines. Lucinda suggested, if circumstances are right, the City might look at adding one wind turbine every other year. The draft plan includes a process to periodically evaluate these potential issues. Some of the potential new measures address municipal government operations. One goal is to reduce city building energy use by 15 percent per square foot through a variety of actions. Some actions include the creation of an energy management team and/or assignment of an energy manager, implementation of an education campaign for City staff, audit of City Buildings, consideration of EnergyStar buildings and hiring of an HVAC control technician in the Facilities Department. Other potential municipal measures that could affect Utilities include optimizing water treatment facilities and having the City government look at purchasing the energy from one wind turbine for ten years. If the City were to purchase wind energy, the question is whether this is appropriate use of tax dollars/public funds. Other potential new measures look at encouraging the repairs of existing solar water heating systems. Lucinda explained alternatives to residential air conditioning, such as the use of whole house fans, building orientation and the location of trees. A campaign to promote compact florescent lights in residences was discussed. If one out of ten residences in 2010 were to use compact fluorescent bulbs, it would reduce the green house gas by 682 tons. Other unquantified potential measures include energy efficiency training for new builders, energy efficient large appliances and promotion of the existing solar energy incentives. Overall, the CO, reductions for the potential new measures show transportation at 54 percent, waste at 27 percent and energy at 16 percent. The draft plan will be out for comment through June 9,1999. The Council Study Session is scheduled for June 8, and the Council action plan will be July 20. There was a question regarding how Council will address this issue. Lucinda explained the plan is a recommendation to Council. The CCP has identified items that are cost effective with the hope that Council will embrace the project. Lucinda asked the Electric Board to make a recommendation at the June meeting FUTURE AGENDA ITEMS: Cities for Climate Protection PRPA peaking facility PRPA Board Meeting Update Adjourned 8:30 p.m. Im