Loading...
HomeMy WebLinkAboutEnergy Board - Minutes - 09/05/2013Energy Board Meeting Minutes September 5, 2013 1 Fort Collins Utilities Energy Board Minutes Thursday, September 5, 2013 Energy Board Chairperson City Council Liaison Greg Behm, 226-6161 Ross Cunniff, 420-7398 Energy Board Vice Chairperson Staff Liaison Peter O’Neill, 288-4562 Steve Catanach, 416-2622 Roll Call Board Present Chairperson Greg Behm, Vice Chairperson Peter O’Neill, Board Members Stacey Baumgarn, Nick Michell, Peggy Plate, Margaret Moore, and Britt Kronkosky Board Absent Board Members John Graham and Barrett Rothe Staff Present Steve Catanach, Lisa Rosintoski, Ellen Switzer, John Phelan, Katy Bigner, Cyril Vidergar, Lance Smith, Mike Gebo, Lucinda Smith, and Harriet Davis Guests John Bleem Meeting Convened Chairperson Behm called the meeting to order at 5:30 p.m. Public Comment None Introduction of Cyril Vidergar Assistant City Attorney Cyril Vidergar introduced himself to the board. Mr. Vidergar advises Utilities staff on issues related to the Light and Power side of Utilities. Approval of July 11, 2013 Minutes Board Member Kronkosky moved to approve the minutes of the July 11, 2013 meeting with corrections as outlined below. Board Member Baumgarn seconded the motion. Vote on the motion: Yeas: Baumgarn, Behm, Kronkosky, Michell, Moore, and O’Neill. Nays: None. Vote on the motion: It passed unanimously. The July minutes will be revised with the following change:  Revised the second bullet in the discussion section of the Climate Action Planning item: “A board member suggested staff should include interim goals between 2020 and 2050. The board member does not like to see a 30 year gap in the targets.” * Board Member Plate abstained from voting due to her absence at the July meeting. Energy Board Meeting Minutes September 5, 2013 2 Approval of August 8, 2013 Minutes Board Member Baumgarn moved to approve the minutes of the August 8, 2013 meeting with corrections as outlined below. Board Member Moore seconded the motion. Vote on the motion: Yeas: Baumgarn, Behm, Michell, Moore, O’Neill, and Plate. Nays: None. Vote on the motion: It passed unanimously. The August minutes will be revised with the following changes:  Corrected the typo in Board Member Rothe’s name. Corrected the typo in State House Representative B.J. Nikkel’s name.  Revised the following sentence in the section on Proposed Electric Rate Changes: “Platte River’s portion of the increase is due to adding 30 MW of wind energy.” The sentence will be corrected to read as follows: “Platte River’s portion of the increase is partially due to adding 30 MW of wind energy.” * Board Member Kronkosky abstained from voting due to his absence at the August meeting. Staff Reports Light and Power Operations Manager Steve Catanach gave an update on the Automated Metering Infrastructure (AMI). Staff is working to address the concerns of those customers who do not want the new meters installed. Staff is hopeful that every meter will be changed out by the end of the year. Mr. Catanach also gave an update on the web portal development. Utilities staff has signed a contract with Siemens for the web portal and is in contract negotiations with Converge for a demand response system. Energy Services Manager John Phelan gave an update on the City Council Work Session on the On-Bill Financing program. There is strong support for the program; however, more time is required before conclusions can be made on the success of the program. 2014 Budget – Light and Power (L&P) Fund (Attachments available upon request). Mr. Catanach introduced the item and shared some background information with the board. The item is brought before the board because budget appropriation ordinances are required each year. Utilities Financial Operations Manager Ellen Switzer presented information on the item. 2013-2014 Budget  Energy Board recommended approval of the 2013-2014 L&P Budget in Fall 2012  City Council approved the 2013-2014 Budget and adopted the 2013 budget appropriation in November 2012  This item will be presented to Council in October and November 2013 2014 Budget  Limited changes permitted in “off-year”  Two changes are requested (an increase of $740,168 to the purchase power budget and an increase of $262,400 to the payment to the general fund in lieu of taxes and franchise fees (PILOTs)) Energy Board Meeting Minutes September 5, 2013 3  Purchase Power +$740,168 o Increase in base projection based on actual 2012 costs o Increase in growth projection based on 2012 and first 6 months of 2013 o Lower purchase power rates projected by Platte River Power Authority (PRPA)  PILOTs +$262,400 o 6 percent of projected operating revenues Board Support Requested  Both revisions recommended for approval by staff, City Manager, and the Budget Lead Team  Motion in support of the additional budget requests for purchase power and PILOTs Highlights from the discussion:  A board member asked for clarification on the increased appropriation. Ms. Switzer stated that growth is higher than expected. Mr. Catanach reiterated that funds must be appropriated first even when there are additional revenues to fund the additional expense.  A board member asked if this is common practice. Does Council anticipate these types of requests? Ms. Switzer stated Utilities typically adjusts the purchase power and revenue budgets each year so yes, Council is aware of these requests.  A board member inquired if rates can be adjusted every two years. Mr. Catanach stated changes would be more significant if Utilities followed this practice.  A board member asked for clarification on the concept of PILOTs. Staff explained these are funds that would be paid to the City if the Utility were private. They are collected from customers and transferred to the General Fund from the Utilities budget. Discussion on the motion: There was no discussion on the motion. Vote on the motion: Yeas: Baumgarn, Behm, Kronkosky, Michell, Moore, O’Neill, and Plate. Nays: None. Vote on the motion: It passed unanimously. 2014 Utility Rates/Electric Development Fees (Attachments available upon request). Strategic Financial Planning Manager Lance Smith presented information on this item. Mr. Catanach also participated in the discussion. This item was previously brought before the board at the August meeting. There are two components in the 2 percent proposed increase:  1.5 percent retail impact from PRPA’s wholesale rate increase (PRPA wholesale rates up 2.1 percent)  0.5 percent for the Fort Collins Solar Program Mr. Smith presented a graph showing the impacts by rate class and season for a proposed electric rate increase. Vice Chairperson O’Neill moved that the Energy Board recommend that City Council approve the revised 2014 budgets required for purchase power and payment in lieu of taxes. Board Member Kronkosky seconded the motion. Energy Board Meeting Minutes September 5, 2013 4 Electric Development Fees Mr. Catanach shared background information on development fees. These fees are charged to new developments and include a square footage charge, a front footage charge, a dwelling unit charge, and a primary service charge. There was a significant increase in these fees due to an error in the model. Because of this, staff is considering two options:  Implement the full increase in 2014  50 percent implementation in 2014 and 50 percent implementation in 2015 Highlights from the discussion:  A board member inquired if these fees only cover costs. Mr. Catanach stated yes, only costs are covered. Utilities would like to ease the impact of this so there is not a negative impact to the ratepayers.  A board member inquired when the change will take effect. Mr. Catanach stated this change will take effect January 1, 2014.  A board member inquired how often these fees are reviewed. Mr. Catanach stated the fees are reviewed once a year.  The board members and staff discussed the best way to present their thoughts to Council. The motion will be included in the Council packet along with a memo of support.  The board will make separate motions for the rate increase and electric development fees. Discussion on the motion: There was no discussion on the motion. Vote on the motion: Yeas: Baumgarn, Behm, Kronkosky, Michell, Moore, O’Neill, and Plate. Nays: None. Vote on the motion: It passed unanimously. Chairperson Behm will draft a memo that includes the above motion. This will be forwarded to Council in advance of the October 15 meeting. Discussion on the motion: A board member feels that ratepayers should not be burdened with extra costs associated with new development. A board member inquired if there is another board weighing in on the development fees. Mr. Catanach stated this item will not be presented before another board because the Energy Board Charter states the board will review Electric Utility rates and fees. Vote on the motion: Yeas: Baumgarn, Behm, Kronkosky, Michell, Moore, O’Neill, and Plate. Nays: None. Vote on the motion: It passed unanimously. Board Member Moore moved that the Energy Board support the 2 percent average electrical rate increase for 2014. The board will provide a memo to Council in support of this motion. Board Member Michell seconded the motion. Board Member Michell moved that the Energy Board support the electric development fee increase proposed and presented as Option #1 implementing the full increase in 2014. Board Member Baumgarn seconded the motion. Energy Board Meeting Minutes September 5, 2013 5 Overview of the Upcoming for Adoption 2012 Building Codes (Attachments available upon request). Chief Building Official Mike Gebo presented information on the item. This item will be presented to a City Council Work Session in October. The following codes are introduced for adoption:  2012 International Building Code (IBC)  2012 International Mechanical Code (IMC)  2012 International Fuel Gas Code (IFGC)  2012 International Energy Conservation Code (IECC)  2012 International Residential Code (IRC) Highlights from the presentation:  The City does not have to adopt the International Plumbing Code or the National Electric Code.  This information has been presented to several other City boards. Public outreach is also planned.  The City is currently under the 2009 International Residential Code (IRC).  The codes are reviewed by a committee of volunteers who decide whether or not to support new code amendments.  Mr. Gebo noted that Green Code Amendments have been implemented into the codes. These address issues such as energy efficiency and recycling.  Significant changes to the code include the following: o A provision that dwellings with any gas cooking (not just gas ovens) will be required to have a range hood vented to the outside. The board and staff discussed the advantages and disadvantages of ventilation systems as it relates to this. o Electrically heated homes and buildings shall show energy compliance by the prescriptive path charts versus using a computer program which allows for trade- offs of the insulation values. o Improvements on energy efficiency submittals (the applicant has to show the ductwork sizing) o A requirement that fire suppression (sprinkler) systems should be installed in new single family homes o A requirement that multi-family homes shall not use vinyl siding o A requirement that that fire suppression (sprinkler) systems should be installed in multi-family attics o A requirement that builders must submit a Construction Waste Management Plan (wood, concrete, steel, and cardboards) for remodel work over 5,000 square feet  Mr. Gebo shared the advantages of fire-suppression (sprinkler) systems. He provided data from the National Fire Protection Association (NFPA). There are sustainable advantages as well because less water is used with sprinkler systems versus water that is used by the fire department to extinguish the fire.  The fire-suppression (sprinkler) systems use a potable water system. Highlights from the discussion:  A board member asked Mr. Gebo if he is aware of any builders in the area that have added them in developments voluntarily as a way to differentiate their product from others. Has there been feedback from customers? Mr. Gebo stated he is not aware of any single-family home builders that have installed the systems voluntarily. There are some Energy Board Meeting Minutes September 5, 2013 6 builders that have installed the systems because they are out of access to the fire department.  A board member inquired if the codes are applicable to retrofits. Mr. Gebo stated codes are applicable to any permit issued after the adoption date.  The board members and staff discussed the economic impact of adding the fire- suppression (sprinkler) systems. Discussion on the motion: A board member would like to see an economic analysis on the fire-suppression (sprinkler) systems. A board member feels that insurance companies are recognizing the value of these systems. The board member feels there would be a reduction in insurance premiums for homeowners that have these systems. A board member is not supportive of the sprinkler systems. The board member is concerned about damage caused by sprinklers that are inadvertently discharged. However, the board member feels the systems are advantageous if they are installed correctly. Mr. Gebo stated that training is conducted for sprinkler system installation. A board member suggested a friendly amendment to the motion allowing for a separate motion concerning the fire-suppression (sprinkler) systems. Discussion on the motion: A board member asked for clarification on the process for adopting other local amendments. Mr. Gebo reminded the board that other aspects of the code can be adopted at a later date, including Green Building Code amendments. Some board members would like to see a study of the economic benefits of fire-suppression (sprinkler) systems. Vote on the motion: Yeas: Baumgarn, Behm, Kronkosky, Michell, Moore, O’Neill, and Plate. Nays: None. Vote on the motion: It passed unanimously. Vote on the motion: Yeas: Baumgarn, Behm, and Moore. Nays: Kronkosky, Michell, O’Neill, and Plate. Board Member Moore moved that the Energy Board support the adoption of the 2012 codes that have been reviewed, including sprinkler systems for residential homes. Chairperson Behm seconded the motion. Chairperson Behm moved that the Energy Board support staff’s recommendation to include fire-suppression (sprinkler) systems in the adopted 2012 International Residential Code. Board Member Moore seconded the motion. Board Member Moore moved that the Energy Board support the adoption of the 2012 codes that have been reviewed and approved by the committee. Chairperson Behm seconded the motion.