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Energy Board Minutes
March 3, 2016
Fort Collins Utilities Energy Board Minutes
Thursday, March 3, 2016
Energy Board Chairperson City Council Liaison
Pete O’Neill, 970-288-4562 Ross Cunniff, 970-420-7398
Energy Board Vice Chairperson Staff Liaison
Nick Mitchell, 970-215-9235 Tim McCollough, 970-305-1069
Roll Call
Board Present: Chairperson Pete O’Neill, Vice Chairperson Nick Mitchell, Board Members
Greg Behm, Bob McDonald, Phil Friedman, Margaret Moore, and Stacey Baumgarn (2
vacancies)
Staff Present: Tim McCollough, John Phelan, Lawrence Pollack, Kevin Gertig, Lindsay Ex,
Lucinda Smith, Janet Mctague, Kraig Bader
PRPA: Paul Davis
Members of the Public: Rick Coen
Board Member Margaret Moore joined the meeting at 5:36 p.m.
Meeting Convened
Chairperson Pete O’Neill called the meeting to order at 5:31 p.m.
Public Comment
None
Approval of February 4, 2016 Board Meeting Minutes
Board members had no revisions.
Chairperson Pete O’Neill moved to approve February 4
th
minutes as written.
There was no second to motion.
Vote on the motion: It passed unanimously, 6-0.*
*Board Member Marge Moore joined the meeting at 5:36 p.m. after minutes were approved.
2017-2018 Budgeting for Outcomes Process
Lawrence Pollack, Budget Director
(Attachments available upon request)
Lawrence Pollack, Budget Director, gave an overview of the Budgeting for Outcomes process,
which the City adopted in 2005. The outcomes process encompasses a 2-year project beginning
in April after Council elections. Input is obtained from a broad spectrum of Fort Collins
residents, including businesses, seniors, and youth on what programs the city should distribute
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funding to for the next 3-5 years. Lawrence outlined each component of the outcomes process,
and which steps (BFO, BLT, and Public Hearings) allow for public input. The opportune times
for board input into funding is during strategic plan development (currently underway), and
during the Super Board meeting occurring in May/June, as well as the commission meeting.
Discussion:
After discussion of the Budgeting For Outcome (BFO) process and current proposals, it was
recommended that at the next Board meeting the Climate Action Plan and Energy Policy be
further refined prior to submission to the Budget Lead Team (BLT). Tim McCollough stated
staff is currently working on a Capital Improvement plan and will submit after a work session in
March, which the board was invited to contribute to. Tim also stated the board would be looking
at Enhancement offers in early April, as final proposals are due April 22.
Climate Action Plan Implementation Presentation
Lucinda Smith, Environmental Services Director
Lindsay Ex, Environmental Program Manager
(Attachments available upon request)
Climate Action Plan Implementation representatives Lucinda Smith, Environmental Services
Director, and Lindsay Ex, Environmental Program Manager, along with John Phelan
summarized new developments in the CAP plan and proposals. The 2020 roadmap was reviewed
with future goals of 20% carbon emission decrease by 2020 and a goal of Fort Collins being
carbon neural by 2050. Based on recent analysis, 2015 carbon reduction demonstrates some
improvement, which is expected to increase as more data is calculated. Currently, 11 teams are
focused on implementation strategies, with a total of 70 staff and 31 citizens participating. Out of
the 68 initial initiatives identified, 31 initiatives have been finalized after public feedback. With
the tool of a cost/benefit analysis tool, 2020 CAP Strategic Plan has been finalized.
Three possible pathways to achieve 2020 CAP Strategic Plan were evaluated. These pathways
included the Accelerated Pathways (costing $219 million), Cost Effective Pathway (costing $181
million), and the cost effective 2050 pathway (costing $248 million). Specific attention was paid
to board-interest topics such as Business Efficiency Portfolio Base and Home Efficiency
Portfolio.
CAP then discussed current programs that are ready to be implemented and needed positions.
These positions include Building Energy Disclosure/Scoring (1 FTE), Home and Business
efficiency portfolio (1.5 FTE), Solar Incentive and Rebates (0.5 FTE). The final topic of
discussion was the recent request from Platt River to Fort Collins to contribute to the study
exploring a diversified energy mix with the funding of $50,000. Implications of this study could
determine separate rate structure and significant reductions in the 2020 CAP plan. This measure
is still pending discussion from city officials.
Discussion
Board members discussed the rationale behind total cost of each measure, which CAP members
stated only include the costs of upgrading facilities and personal pay, ignoring an incentives or
possible rebates. The board recommended further analysis on how to frame each point (cost
verses investment) and that further investigation of total community investment occur. The
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board evaluated several costs estimates in detail, correcting an error and was informed the CAP
estimates are not yet finalized and still in the editing process.
Proposed Changes to Code, Rules and Regulations and the Electric Construction Policies,
Practices and Procedures
Janet Mctague, Project Engineering Supervisor
(Attachments available upon request)
Project Engineering Supervisor Janet Mctague provided a summary of proposed changes to
municipal code and electric service standards encompassing how utilities, rates, and construction
are regulated/distributed. Overarching municipal code changes proposed include new policies be
recorded under municipal code and procedures recorded under electric service standards.
The two most significant changes proposed include contained metering, and cold sequence
metering. Two significant changes to the code include Cold Sequence Metering (clarifying
acceptable types of disconnects) and Self Contained Metering (discontinued use of horn bypass
in favor of lever bypass).
Additional municipal code changes include fixed consumption billing (added a definition for
clarifying qualifications for flat rate billing—no more estimated use/payment will be permitted)
and changes to multi-Family services (clarifying that all multi-family services will be installed
and maintained by property owner, defining ownership).
Discussion highlights:
Janet Mctague asked if the board would approve the proposed changes and, if approved, would
write a letter stating they supported the changes to be presented at council on April 19
th
. After
significant discussion, the board determined a motion endorsing the proposed changes would
suffice and a copy of the minutes would be provided to Janet Mctague if requested.
Chairman Pete O’Neill moved:
Motion that this board supports two ordinances; adoption of municipal code changes of
language into code and adoption of electric service standards, and recommends adoption
of these changes to council.
Board Member Margaret Moore Seconded the motion.
Vote on the Motion: It passed unanimously, 7-0.
Energy Policy 2015 Annual Report
John Phelan, Energy Service Manager
Mr. Phelan summarized the Energy Policy Implementation results that were established in the
2009 Energy Policy, clarifying that provided results were preliminary. Current results include
efficiency (1.6%± 0.3% 2015 savings, 25GWh); Renewables (7362 MWh, 0.5% local renewable
energy 2015); Reliability (181,077MWH, 12% utility scale renewable energy); and greenhouse
gas emissions from electric use (13% reduction from 2005 in operation emissions).
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Mr. Phelan updated the board on the Georgetown Energy Prize contest, which Fort Collins is
now currently ranked as #10, with an Energy Score of -8 (https://guep.org). The board was
encouraged to investigate the rankings in detail on the website and consider a program similar to
the Georgetown model that might work for the local community. In order to move on to the next
stage in the competition, Fort Collins must remain in the top 10. Phase 3 would involve Fort
Collins competing for the next 2 years in reducing their energy consumption, but also provide a
sustainable model other communities can implement.
Current projects were then discussed, with major focus spent on the Home Efficiency loan
program. In the past month, a significant increase has occurred. The Energy Policy Board is
meeting on March 14
th
to consider raising the outstanding loan from $800,000 to $1.6 million in
order to allow time for the board to finance with 3
rd
party capital. Pending board questions, it
was revealed most home efficiency loans are used on insulation and furnaces, which a recent
increase in solar devices after more involvement from solar contractors, and paid back on a 10
year plan.
Highlights included the new 2015 Energy Police adoption, increased solar capacity and greater
diversity of solar models, and council approval of FTE for energy code compliance in 2016.
Current programs were reviewed and future goal discussed. A final report is expected at the next
meeting.
Staff Report
Kevin Gertig, Utilities Executive Director
Kevin Gertig, Utilities Executive Director, gave an abbreviated report due to time constraints. In
summary, light and power revenues were below budget ($2.31 million), but expenses were below
budget ($5.39 million). Utilities performance metrics are not at projected goals, but Tim
McCollough and team are focused on improvement. Community energy use remained flat. The
turnover rate in City Employees is below target, but there has been significant retirement. Safety
goals are still unmet, but January is the first month in a great deal of time with Zero Lost Time
Accidents. The Total Recordable Injury Rate (TRIR) is a goal for the city and multiple
mechanisms are in place.
Mr. Gertig then discussed 2016 priorities which encompass safety, billing system evaluation,
asset management based on aging infrastructure (minimizing unnecessary turnover), 10-year
strategic financial plan (currently being drafted), service area master plans, Michigan ditch
project ($7.5 million tunnel which has already been vetted and is essential to PRPA), climate
action plan, and the new admin building (planned moved date is mid-Fall). Mr. Gertig stated he
will send out packets with project updates due to time constraint.
Discussion:
The board discussed the effect of the economy on budget and how the city can better prepare for
economic variability. A board member appreciated seeing improvement in safety due to
investment and how models demonstrating the profit of the safety investment would be
interesting to see.
Board Member Reports
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Board Chairman Peter O’Neill shared information on recent Platte River Board Meeting
and noted that only Mayor Wade Troxell discussed resources and topics directly related
to the board. Platte River is now at 29% non-carbon energy (which includes hydro, wind,
and solar energy) for 2016, which is the highest they’ve been. Additional positive updates
included a drop in per capita consumption and that Fort Collins is the only city with AMI.
Of note, John Bleem is retiring.
Board member Phil Friedman stated he attended the Board Super Meeting on February
18. 15 boards and commission were represented with over 40 people present. Topics
included abandoned property, community survey, spill response coordination with
Poudre Valley and Fort Collins police, downtown planning, noise ordinance, and out of
control parties. It was determined that only 1 person is responsible for out of control
parties, a common statue in many college towns. The next meeting in April will include
people from CSU and cover how to deal with difficult subjects as a board.
Board member Stacey Baumgarn shared his perspective on the CAP plan; stating that the
project 20% decrease equates to 490,000 tons of CO2 decrease, which equates to 2 CSU
campuses. Currently, CSU’s carbon footprint is down 7% from 2010, down 13% per
student, and down 18% per foot. Some of these improvements are due to new buildings.
Staff Member Tim McCollough recapped his time at DistribuTECH 2016. He discussed
that European markets are projecting they won’t need renewable energy storage until they
reach 60-70% renewable energy, compared to US market projections at 5-10%. The
Leverage Tropos (ABB Wireless) for WAN Access in the field project was revealed and
several possible pilot projects (Advanced Distribution Management Systems, Stray
Voltage Service, Rainforest Automation) were discussed and Tim stated the BFO is
currently evaluating which projects they may want to include.
New Business
None.
Future Agenda Review
First work session March 24
th
, Transportation Master Plan Technologies (ride sharing, self-
driving car, play into effect consumption). Meeting is expected to be brief.
Agenda items for the April 7
th
meeting include Platte River Power Authority, Clean Power Plan
with John Shenot, Quarterly Financial Plan, Energy Policy 2015 Annual Report, and Utilities
Strategic Financial Plan.
Adjournment
The meeting adjourned at 8:24 p.m.
Submitted by Lyndie Parker, Temporary Administrative Clerk, Fort Collins Utilities
Approved by the Board on April 7, 2016.
________________________________ ______________
Angel Anderson for Lyndie Parker Date
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4/8/2016