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HomeMy WebLinkAboutEnergy Board - Minutes - 03/01/2012Energy Board Meeting Minutes March 1, 2012 1 Fort Collins Utilities Energy Board Minutes Thursday, March 1, 2012 Energy Board Chairperson City Council Liaison Ross Cunniff, 420-7398 Lisa Poppaw, 223-4136 Energy Board Vice Chairperson Staff Liaison Barrett Rothe, 303-881-9683 Brian Janonis, 221-6702 Roll Call Board Present Chairperson Ross Cunniff, Vice Chairperson Barrett Rothe, Board Members Steve Wolley, Peggy Plate, Britt Kronkosky, Greg Behm, Peter O’Neill, Peggy Plate, and Margaret Moore Staff Present Brian Janonis, Steve Catanach, Patty Bigner, Bruce Hendee, Robin Pierce, John Phelan, Jenny Lopez Filkins, Lucinda Smith, Sharon Held, and Harriet Davis Guests Rick Coen Meeting Convened Chairperson Cunniff called the meeting to order at 5:31 p.m. Public Comment None Approval of February 2, 2012 Minutes Vice Chairperson Rothe moved to approve the minutes of the February 2, 2012 meeting. Board Member O’Neill seconded the motion. Vote on the motion: Yeas: Baumgarn, Behm, Cunniff, Kronkosky, Moore, O’Neill, Plate, Rothe, and Wolley. Nays: none. The motion carried. The minutes were approved unanimously. Board Member Reports Vice Chairperson Rothe provided a legislative update to the other board members. He provided a handout on both energy related and non energy related items currently in the state legislature. Consider Revisions to Energy Board Bylaws (Attachments available upon request). Assistant City Attorney Jenny Lopez Filkins presented two versions of the bylaws for the board to review. Option 1 adds the following notation in Article IV, Section 2, “sections 4 and 5 of the Rules of Procedure Governing the Conduct of City Council Meetings adopted by the City of Fort Collins City Council shall govern the parliamentary procedures of the Board.” Option 1 also adds the following notation in Article V, Section 7, “A member of a Board committee shall be responsible for keeping minutes of any committee meeting.” Energy Board Meeting Minutes March 1, 2012 2 Board Member Plate suggested changing the wording in Article III, Section 2 concerning when board elections are held. Discussion on the motion: Chairperson Cunniff gave the board members an opportunity to review the bylaws and suggest revisions as necessary. There were no other revisions. Vote on the first motion: Yeas: Baumgarn, Behm, Cunniff, Kronkosky, Moore, O’Neill, Plate, Rothe, and Wolley. Nays: none. The motion carried. Vote on the second motion: Yeas: Baumgarn, Behm, Cunniff, Kronkosky, Moore, O’Neill, Plate, Rothe, and Wolley. Nays: none. The motion carried. Finalize 2012 Work Plan (Attachments available upon request). The board reviewed the notes taken during the February Work Session. Vice Chairperson Rothe suggested going through the list to categorize each topic. A board member suggested board members may have individual comments to the list of topics. * The board members decided to table this item until after the other presentations. Efficiency Financing Program (2012 Pilot) (Attachments available upon request). Utilities Executive Director Brian Janonis introduced the topic and stated City Council asked Utilities to look at on-bill financing for energy efficiency improvement projects since there is a lot of public support for the program. Customer and Employee Relations Manager Patty Bigner stated some of the criteria have been modified from earlier programs. Since financing seems to be the most common barrier for completing these types of projects, Utilities feels the pilot program will be well received in the community. Energy Services Manager John Phelan stated this item will be presented to Council on March 20. Utilities would like to increase the number of residential efficiency and renewable energy projects by addressing the up-front cost barrier via on-bill financing with a simple application and approval process, offering the customer the option to finance 100 percent of the project costs, and offering the ability to repay the loans on their utility bill. Board Member O’Neill moved that the Energy Board consider adopting Option 1 of the bylaws. Board Member Rothe seconded the motion. Board Member Plate moved to amend Article III, Section 2 to read as follows, “The Board shall at its second regular meeting in each calendar year elect from its membership a chairperson…” Board Member Rothe seconded the motion. Energy Board Meeting Minutes March 1, 2012 3 Program Elements Mr. Phelan stated this is not a new program, but a new element added to the existing Home Efficiency Program. These include low-cost audits that address prioritizing home improvement measures, contractor lists, and installation standards. Program Research Mr. Phelan stated Utilities conducted research on existing programs in states such as Kentucky, Kansas, South Carolina and Oregon. Program Scope Utilities is asking Council to revise language in Chapter 26 of the City Code to include the financing provision. This will align the ability to service the loan on the utility bill, including a lien on the property and a service disconnect if the customer does not pay their bill. Mr. Phelan stated this is a not a ratepayer subsidized program because there are application fees and interest rates. The pilot program is using utility reserves as the initial capital fund. Board discussion: A board member questioned if fees will be added to the tenant’s bill in the case of rental property. Mr. Phelan stated this could be a possibility with the program. The pilot program will include options so rental properties can participate. What happens if the owner sells the property before the loan is paid off? Mr. Phelan stated that the loan is due upon sale of the property. Does Utilities bear the risk with default loans? Mr. Phelan stated the loans are secured with a note on the property. Program Overview Project types are based on existing Utility programs, including energy efficiency, water supply line replacement and repair, and renewable energy; however, not every component of the Zero Interest Loan (ZILCH) Program will be included in this program. Air quality improvements, radon systems, and fireplace inserts will not be covered. The City would like to find other alternatives to finance these types of projects. The customer defines the scope of work with a contractor from a list of qualified contractors provided by Utilities. The loan agreement will include the parameters and qualifications, as well as the project eligibility component. Board discussion: Does the City inspect the efficiency improvements? Mr. Phelan stated the City inspects the first five projects of every contractor that comes through the program. After this process, it changes to a 1 in 10 project inspection, depending on the type of project. Mr. Phelan presented the next steps in the process. The Council presentation is scheduled for March 20. Utilities will finalize testing of the billing system, document internal processes and third party resources, document the accounting procedures, and integrate the financing options with the existing Home Efficiency Program outreach and marketing plans. Energy Board Meeting Minutes March 1, 2012 4 Board discussion: Is a lien only recorded when the loan goes into default? Mr. Phelan stated the lien is recorded with the county when the loan is originated. Would Utilities reconsider the Air Quality Measures as part of the program? Mr. Phelan stated the scope of the program currently does not include the air quality measures. Mr. Janonis stated the Utilities charter and code language is very specific. These types of programs have to benefit the ratepayer directly. A board member questioned the broader goals and objectives of the program. The board member felt that perhaps air quality programs should be included because they are connected to the broader carbon reduction goals. Chairperson Cunniff suggested the board could write a memo to Council suggesting they expand the charter and code revisions to incorporate air quality. A board member stated they are looking at the program from a customer perspective. The board member felt the programs should be more transparent for the customers. Does this program replace the ZILCH program? Mr. Phelan stated Utilities is currently still offering the program; however, this new program will supersede it. Program Benefits Mr. Phelan stated this is a Triple Bottom Line (TBL) type of program. The program includes sustainability aspects such as energy and water use reduction, renewable energy generation, local investment in our built environment and improved health, comfort and safety in homes. Board discussion: What is the proposed budget amount? The budget exception proposed last fall was $300,000. The program is expected to fund between 50-75 projects. There may also be opportunities to bring in third parties to create a loan fund. A board member suggested the program could be structured to show customers what they are saving over the loan payback period. Perhaps the customer could see what they are saving with the efficiency improvements. Mr. Phelan stated it is hard to define this because of the variability in energy use by different customers. This information will be provided to customers but it will not be a requirement of the program. A board member suggested Utilities should use caution with marketing the program because the savings to the customer may not be significant after the improvements are made. Can customers still qualify for the efficiency rebates with the loan program? Yes, the rebates are still available for those customers using the loan program. Discussion on the motion: A board member questioned if the air quality component should not be lost within the City since it is being removed from the ZILCH program. Senior Environmental Planner Lucinda Smith stated the Office of Sustainability will talk with potential organizations in the community to assist with the processing of this component. Board Member Moore moved that the Energy Board should let City Council know this is a good program. Board Member Rothe seconded the motion. Energy Board Meeting Minutes March 1, 2012 5 A board member asked for clarification on what Utilities would like the Energy Board to endorse. Mr. Phelan stated Council is only acting upon the change to the code language authorizing Utilities to provide and service loans on the Utility bills. They are not authorizing the loan amounts or types of projects. This is part of the Utilities administrative function within the program. A board member suggested a friendly amendment to the motion stating the Energy Board is endorsing expanding the role of Utilities as the financing agent for energy reduction projects. Vote on the motion: Yeas: Baumgarn, Behm, Cunniff, Kronkosky, Moore, O’Neill, Plate, Rothe, and Wolley. Nays: none. The motion carried. Sustainability Presentation (Attachments available upon request). Mr. Janonis introduced Chief Sustainability Officer Bruce Hendee and Senior Environmental Planner Lucinda Smith from the Office of Sustainability. Mr. Hendee introduced the topic and stated the efforts of this office are intended to raise the accomplishments of community wide sustainability efforts and support the efforts of the City as a whole. Serving as a resource to the rest of the City organization, the Office of Sustainability focuses on three points: innovation, stewardship, and world-class service. Defining Sustainability The current definition has been adopted by City Council, and states that the City of Fort Collins will serve as a community leader to systemically, creatively, and thoughtfully utilize environmental, human, and economic resources to meet our present needs and those of future generations without comprising the ecosystems upon which we depend. The Office of Sustainability is comprised of three components as related to the Triple Bottom Line approach: Economic Health, Environmental Services, and Social Sustainability. Economic Health The current services of Economic Health include business retention and expansion, incubation (innovation ecosystem), business recruitment, target industry cluster development, and urban renewal. Mr. Hendee stated the Office of Sustainability would like to align their economic health strategic plan to sustainability principals. Future and new services include talent management, small business support, leveraging of community partnerships, and quality of place (amenities, capital projects, and cultural assets). Environmental Services Current services include air quality (outdoor and indoor), carbon planning and data management (gathering data on municipal and community carbon emissions), waste reduction and recycling, municipal sustainability, and communication. Energy Board Meeting Minutes March 1, 2012 6 Social Sustainability Ms. Smith stated this concept is still in development; however, ideas include a social needs gap analysis, multi cultural community needs, and local food. Office of Sustainability - Possible Future Services Ms. Smith stated the office would like to support the entire City organization by developing and managing a comprehensive sustainability strategic plan, data management and analysis (including carbon accounting), integration of departmental sustainability efforts (i.e. waste management and waste-to-energy), advancing City Plan catalyst projects, sustainability education and outreach, Fort ZED coordination, Earth Day celebration coordination, and seeking a grant writer/coordinator. Mr. Hendee presented the proposed mission statement for the Sustainability Strategic Plan: Pioneering a thriving future where exceptional quality of place, innovation, and stewardship connect. Fort Collins Climate Policy (2008) Ms. Smith presented information on the Fort Collins Climate Policy. The carbon reduction goals are 20 percent reduction below 2005 levels by 2020 and 80 percent reduction below 2005 levels by 2050. This progress has to be reported on an annual basis. Fort Collins Community Carbon Reduction Ms. Smith stated there has been an 11 percent reduction below the 2005 baseline even though population growth has increased since that time. Ms. Smith feels some of the reductions are a result of City energy programs such as Climate Wise and recycling programs. Municipal Sustainability in Action Ms. Smith gave examples of municipal sustainability in action, including the LEED certification ordinance required for new City buildings, recycling programs, the use of alternative fuels such as bio diesel, the City’s Well Days program, and sustainability scholarships. Municipal Carbon Reduction Progress Ms. Smith stated municipal emission dropped 10 percent below 2005 levels. Mr. Hendee stated the office is conducting several waste diversion and waste characterization studies to understand the baseline. The studies will also be used to help individuals divert waste from the landfill. Mr. Hendee gave an update on the Fort ZED (Zero Energy District) project. Fort ZED 1.0 has been completed and the City is preparing to launch Fort ZED 2.0. The City will host a conference in June 2012 to focus on identifying barriers and strategies in moving Fort ZED forward. Board discussion: When is the Office of Sustainability scheduled to present to Council? The Economic Health Plan is scheduled for the March 27 Work Session. The waste characterization studies have not been scheduled yet. A board member asked for more information on the community carbon reduction programs. Ms. Smith stated the three main areas are the Energy Policy programs, the Climate Wise program for businesses, and the Solid Waste Reduction programs. Progress is tracked based on inventory and the largest carbon benefit quantified comes from the waste reduction program. A board member asked/or clarfication on the community emissions inventories of/he Growth Management Area (GMA). Ms. Smith stated there is a comprehensive report that identifies the methodology for the inventory. This report answers questions on the boundaries. When will the City start composting? Ms. Smith stated various City buildings are starting to compost materials. For example, large earth tubs are utilized for employees to compost food scraps. This compost is used by the Parks Department for downtown plantings. A hoard member asked how the Energy Board can assist the Office ofSuslainabilit)’. Mr. Hendee stated he would like the Energy Board to serve as a sounding board for new ideas. Finalize 2012 Work Plan The board members resumed their discussion on the 2012 Work Plan. The topics were categorized accordingly during the discussion. Vice Chairperson Rothe will finalize the work plan and submit to staff. The board members also discussed the City Board Liaison Assignments document. This document will be updated by the board secretary and e-mailed to the members. Members will attend other board meetings and report to the Energy Board as applicable. Staff Reports None Other Business Mr. Janonis met recently with Councilmember Gerry Horak, a representative on the Platte River Power Authority (PRPA) board. Councilmember Horak asked for recommendations from the Energy Board regarding characteristics for the new PRPA General Manager (the current General Manager is retiring). This information will be conveyed in a memo to Council and will be added as an agenda item for the April 5 meeting. Board Member Moore gave an update on the Colorado State University (CSU) Spring Energy Forum held on February 27, 2012. The forum focused on the economic and national security threats posed by the nation’s over-reliance on fossil fuels. Adjournment The meeting was adjourned at 8:18 p.m. Submitted by Harriet Davis, Administrative Assistant, Fort Collins Utilities Approved by the Board on l c , 2012 Signed Board Secretary Date Energy Board Meeting Minutes 7 March 1.2012