HomeMy WebLinkAboutEnergy Board - Minutes - 09/04/2014Energy Board
September 4, 2014 Minutes
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Fort Collins Utilities Energy Board Minutes
Thursday, September 4, 2014
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 Margaret
Moore, Stacey Baumgarn, Phil Friedman, Peggy Plate, Nick Michell, Michael Doss
Board Absent Board Member John Graham
Staff Present Steve Catanach, John Phelan, Paul Sizemore, Lucinda Smith, Lance Smith, Ellen
Switzer, Cyril Vidergar, and Katherine Martinez
Guests Rick Coen, Fred Kirsch
Meeting Convened
Chairperson Behm called the meeting to order at 5:34 p.m.
Public Comment
None
Approval of August 7 Minutes
Board Member Baumgarn moved to accept the minutes as submitted. Board Member Nick
Michell seconded the motion.
Vote on the motion: It passed unanimously with one abstention.
*Board Member Doss abstained due to his absence at the August 7 meeting.
**Board Member Moore was not present for the vote due to arriving a few minutes later, at 5:41 pm
during Staff Reports.
***Board Member Phil Friedman left the meeting at 7:57 pm during the Bike Share presentation.
Because the August 25 special meeting minutes were not included in the board meeting packet,
Chairperson Behm deferred approving them until the October regular meeting.
Staff Reports
Environmental Services Director Lucinda Smith reported that the Climate Action Committee (CAC)
met for the third time recently and scheduled two more meetings. City Council will hear from the
CAC on February 17, 2015. They discussed models developed by The Brendle Group, and Rocky
Mountain Institute (RMI) is developing supportive information on tactics for strategies.
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Energy Services Manager John Phelan handed out the 2013 Energy Policy Update summary, which
was transmitted to City Council today. He will send a PDF version to the Energy Board.
FC Moves Program Manager Paul Sizemore reported that his group presented the Bicycle Action
Plan and Midtown in Motion Plan at the August 22 Council Work Session, and was successful in
gaining Council’s support to move the plans forward for adoption. The Bicycle Action Plan is
scheduled to be adopted in December, and Council moved up the Midtown in Motion plan to
October 7. The West Central Plan, which includes preliminary designs for Prospect Road, will be
heard at one additional Work Session next year, before Council adopts it.
A board member inquired about Midtown in Motion. Mr. Sizemore explained that the plan
examines the transportation element of College Avenue and how it could work better; the
plan keeps traffic operations for cars mostly the same, with improvements at intersections
and frontage roads, along with bicycle and pedestrian improvements.
A board member inquired about the Georgetown University energy prize that he read about in the
newspaper.
Mr. Phelan explained that it is a competition that gives a $5 million prize to the winner, to
be spent on furthering energy efficiency. City staff is preparing the plan for the competition,
which covers a two-year performance period, from 2015 to 2016, and includes all residential
energy use and municipal buildings. The final competition will cover the first few months of
2017.
A board member inquired whether Fort Collins is competing against cities with similar
populations. Mr. Phelan replied yes, Fort Collins is competing against mid-size cities in the
5,000 to 250,000 population range. The competition works this way: you’re competing
against yourself, with 2013-2014 serving as the base line year, in the categories of electricity
and natural gas. Energy reduction percentage is the measurement. Staff is planning design
charrettes; a group of stakeholders are collaborating on the project. One question in the
application is how will the City use the prize money if it wins?
Budgeting for Outcomes
(Attachments available upon request)
Ms. Smith handout the list of budget offers seen at last month’s meeting with two columns showing
whether the offer was funded in 2015 and 2016, based on the City Manager’s recommended budget,
which was released on Tuesday, September 2 and is available at www.fcgov.com. She pointed out
that budget offer #47.14 for a FTE employee for Green Built Environment was funded even though
it wasn’t in the Budget Lead Team (BLT) recommended budget.
Ms. Smith stated staff was disappointed that offer #47.15 (Keep Fort Collins Great Enhancement:
Community Engagement in a Vision for a Fossil Free Future) was not funded. She stated the City
needs community involvement to meet its carbon objectives. Offer #47.18 (Enhancement FortZED
Program) was funded at half the requested amount: $25,000 for 2015 and $25,000 for 2016.
Highlights of the Discussion
Light & Power Operations Manager Steve Catanach stated that offer #61.1 was not funded;
it would have replaced all street lights with LEDs over five years. The lifecycle payback
analysis came back as 10 to 11 years; staff was asked to shift to a simple payback, which
brought it up to 23 years, therefore staff could not recommend it for funding.
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A board member inquired whether there is an LED standard so we’re not playing catch up if
LEDs are installed. Mr. Catanach stated we’re finally reaching the size of community
require implementing a wholesale replacement of large sections of street lights, whereas
currently, crews do inspections and replace individual lights that don’t work. The City has
nearly 11,000 lights (includes the head and bulb).
Ms. Smith stated there is $1 million in reserves for a municipal recycling center, which was
funded. Offers that just missed funding were in the areas of Water, Solid Waste, etc.
Mr. Sizemore commented on the budget offers receiving funding; the Planning and
Transportation department receiving funding on on-going items but enhancements (one-time
program funding) for consulting services for big projects, transit service, and some
infrastructure items, were not. There are other possible sources of funding for some. Staff
will apply for grants, and Building on Basics (BOB 2.0) will be on the April ballot; BOB
money might provide funding for infrastructure.
Mr. Sizemore stated that two plans that weren’t funded have a high impact on the Energy
Board’s mission: updates to the Transportation Master Plan and Envision Fort Collins,
which would have been the name for the updated version of City Plan. He included two
contingency offers in case the Transportation Master Plan wasn’t funded, but those two
items weren’t funded either. Budget offer #169.1 (Transportation Climate Action Strategic
Plan) links the Climate Action Plan (CAP) to transportation activities.
Ms. Smith suggested board members attend upcoming Council Work Session if they’d like
another opportunity to comment or make recommendations on the budget. The September 9
session will discuss four topics including environmental health, and the September 23 will
include transportation.
A board member commented that he was pleasantly surprised most of the items he was
interested in, except transportation, was funded. He suggested the board write a memo
expressing appreciation to City Council it appreciates funding other items that are important
to the board. Another board member agreed and stated that the more the City encourages
people to use alternative transportation, the less expensive it is to maintain infrastructure.
A board member inquired whether the unfunded items, such as Transportation Master Plan
and Envision Fort Collins, will eventually get funded. Mr. Sizemore stated that yes,
historically that’s how it works out; staff has a list of plans, and will work on alternative
funding and doing some work in-house, and if they’re on the list of budget offers when next
BFO cycle comes, make strong case for why they must be funded.
A board member commented that since car sales are up and Fort Collins’ population is
growing, it’s important to connect the Transportation Plan to climate. He suggested writing a
memo to Council mentioning this, along with expressing gratitude for funded budget offers.
Ms. Smith stated that if no alternative funded is identified for unfunded budget offers before
the next budget cycle, staff will make a strong argument in next BFO process, because some
of these unfunded items do advance the board’s objective. Sometimes the decision comes
down to whether to invest in a capital project with a Return on Investment (ROI) in terms of
dollars and carbon reduction. Also, staff is developing a project list for BOB 2.0.
A board member inquired whether there are any sources of funding from the state and the
U.S. Environmental Protection Agency (EPA). Ms. Smith commented that a past EPA
program called Climate Showcase Communities by EPA was one potential grant
opportunity.
A board member expressed concern about how much to push for budget offers that weren’t
funded, even if it’s just a symbolic gesture. Another board member suggested advocating for
only one or items at most.
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A board member commented that it seems someone dropped the ball on showing the strong
connection between how transportation and climate change issues intermesh. Mr. Sizemore
stated that staff’s preference would be for the Transportation Master Plan to be the item that
links those issues, in the form of meeting energy and greenhouse goals. This would not be
unique to Fort Collins; it’s the way these planning processes have developed across the
country. Boulder is conducting a similar process now, integrating its transportation plan and
climate issues.
A board member inquired how much staff is keeping a watch on land use issues as it relates
to transportation. Mr. Sizemore stated there is a strong link between land use and
transportation, and would have preferred it be addressed in the updates of City Plan and
Transportation Master Plan.
A board member commented, when reading through the Transportation Plan and related
documents, there is not a lot of explicit mention of transportation as it relates to energy
efficiency or greenhouse gas, and it seems critically important to include this relationship.
Ms. Smith stated the City’s Strategic Plan, informed basis for one of justifications, each
offer has specific objectives, full offers are on website
Board Member Michell moved that Chairperson Behm or his designee draft a memo to City
Council supporting the many energy conservation and greenhouse gas reduction projects that
are supported in the budget, in particular, budget offer #47.14 (1.0 FTE Green Built
Environment Program Coordinator) and #47.18 supporting FortZED, and we would also like
Council to considering supporting offer #169.1 (Transportation Climate Action Stategic Plan).
Board Member O’Neill seconded the motion.
Vote on the motion: It passed unanimously.
2015 Budget – Light and Power Fund
(Attachments available upon request)
Financial Operations Manager Ellen Switzer presented information on the City Manager’s
Recommended 2015-2016 Budget for the Light & Power Fund. The budget includes a 6% increase
in operating revenue for 2015, and a 4.4% increase in 2016. Overall revenue will be up 5.9 % in
2015, and 4.1% in 2016.
Payments and Transfers listed on Slide 4 includes payments in lieu of taxes to the General Fund,
General Fund Administrative Services such as human resources and city attorney’s office, debt
service payments, and the Light & Power Fund contribution to the Utilities Customer Service and
Administration fund.
The 2014 Purchase Power budget will increase 2% from 2013 despite the 2.5% rate increase in
purchase power expenses (PRPA) and projected growth of 2.5%. Ms. Switzer stated that this
modest 2% increase is because staff doesn’t anticipate spending the entire budget for 2014.
The total increase in the Light & Power Fund budget is 6.7% increase for 2015 and 1.5% in 2016.
Highlights from the Discussion
The L&P fund is fortunate to have only one budget offer not funded (LED streetlights).
A board member inquired how many meters will be added. Ms. Switzer stated that staff is
expecting a 2.5% increase in total kilowatt hour (kWh) sales.
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Mr. Catanach commented that this budget demonstrates continued growth in construction,
and because growth pays the majority of its own way, expenses are offset by revenue.
A board member inquired about the $1.8 million budget offer for vehicle storage buildings.
Mr. Catanach stated that the challenge has been that the vehicles stored at the Utilities
Service Center ice up at night. The new heated garages will address safety concerns by
melting snow and keeping vehicles dry. There are also design requirements related to the
fact that the service center is in a residential neighborhood.
A board member inquired about projected budget revenues being less than budgeted
expenses. Ms. Switzer stated the L&P Fund has fairly large reserves, some of which will be
used to fund the budget. Mr. Catanach commented that we had planned to use reserves in
2013 as well but ended up using much less than projected. Ms. Switzer stated staff is fairly
conservative in budgeting; they tend to underestimate revenue and overestimate expenses.
Mr. Catanach added that a separate ordinance will also be required to establish that Light &
Power is responsible for paying for City street lights, as is current practice although the City
Charter no longer mentions this responsibility.
Board Member Moore moved that the Energy Board recommend City Council approve the
city manager’s recommended 2015-16 budget for the Light & Power Fund. Board Member
Baumgarn seconded the motion.
Vote on the motion: It passed unanimously.
2015 Utility Rates
(Attachments available upon request)
Rate Analyst Randy Reuscher presented information on the 2015 Electric Rate Increase. An electric
rate increase is required in 2015 due to an increase in purchase power rates from Platte River Power
Authority. The average increase projected for Fort Collins Utilities customers is 1.9%. Over a three-
year period (2015-17), the operations and maintenance expense will increase and estimated $10.1
million for Platte River, which is partially driving the needed increase.
Staff completed the 2014 cost of service study, including updating the usage history for all rate
classes.
The Residential Demand (RD) rate is for all electric customers. Mr. Catanach stated the goal of the
cost of service rate structure is to be completely fair, which is attainable because we now have
better data, and a more accurate representation across the different classes.
Strategic Financial Planning Manager Lance Smith stated the fixed charge should be close to $20;
one reason for a low fixed charge is that lower income does indicate to some extent lower
consumption, and a lower fixed charge may benefit this group, as well as encourage energy
conservation overall.
Mr. Smith stated ordinances are required for the rate increase and for the development fee.
Board Member Moore moved to prepare a letter to council in advance of first reading of
“Utility Rate Ordinances” on Oct. 21, 2014, stating the Energy Board’s position on the
proposed 2015 electric rate increases and the electric development fees.
Chairperson Behm suggested a friendly amendment, which Board Member Moore agreed to: revise
the language from the Energy Board’s “position on” to “support of.”
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Board Member Moore moved to prepare a letter to council in advance of first reading of
“Utility Rate Ordinances” on Oct. 21, 2014, stating the Energy Board’s support of the
proposed 2015 electric rate increases and the electric development fees. Board Member
Baumgarn Stacy seconded the motion.
A board member inquired about whether there were any complaints about the rate increase
at the Key Accounts meeting today. Mr. Reuscher stated there were none.
A board member inquired if a 2% rate increase is typical. Mr. Reuscher stated that compared
to last five to six years, it’s a minimal increase. Mr. Phelan stated the half percent increase
each year over that period was for the Fort Collins Community Solar Garden.
Vote on the motion: It passed unanimously.
Bike Share Presentation
(Attachments available upon request)
Transportation Planner Amy Lewin summarized the business plan. Staff is seeking funding. Bike
Share is an automated self-service bicycle rental service geared toward short, one-way trips. Easy-
to-use, convenient stations of bikes would be located around town, and annual memberships would
be offered, along with casual memberships of one day or seven days. When you check out a bike,
you receive a 30-minute grace period, with additional fees charged if you keep the bike beyond that.
Denver, Aspen, and Boulder are the three Colorado cities currently using Bike Share. The City
would own the system, and use a third party to maintain operations. Cities around the country that
have Bike Share usually form a non-profit organization specifically to handle operations.
Bike Share supports business and tourism, and is customized for each particular city. Advertising
and sponsorships are a key part of the system. Staff is leaning toward using the Smart Dock system;
an alternative is the Smart Bike system in which the technology is on the bike. The city of Tampa
will implement this program soon.
The funding model – phase 1 covers 20 stations, 200 bikes, and a 380 dock system. The system will
cost $1.1 million to start up and $2.6 million over five years. Ms. Lewin stated the program is an
investment; staff plans on $1.5 million in sponsorships. A Request for Proposals for installing the
system and handling operations could be released as early as this fall, with plans for Bike Share to
launch in fall 2015. Information is available at www.fcgov.com/bikeshare
A board member commented that it would be a good idea to allow users to use existing
cards instead of creating 30,000 new cards specifically for Bike Share, such as the RAM
card on the CSU campus that students use to access buildings; the card can also be used like
a debit card for purchases.
Ms. Lewin stated Bike Share bikes are designed to be almost indestructible. They’re much
heavier than a typical bike, about 40 pounds, which discourages theft and vandalism.
A board member inquired how far someone can take the bike. Ms. Lewin stated Bike Share
is meant for short trips, such as someone riding MAX, and using a bike to go to the library
or a restaurant. Bike Share expands transit options, making it easy to get around town.
A board member suggested pairing a Bike Share pass with a Transfort/MAX pass for one
price.
A board member inquired why the plan neglects the south part of Fort Collins, where fewer
Transfort options exist. Ms. Lewin explained that Bike Share is typically expanded in
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phases, starting with the area of highest demand, which is north of Prospect, including CSU.
The shaded area on map represents the area to expand: south of Drake and north of
Harmony, with Lemay as the eastern boundary, and the area between South Taft Hill and
Shields as the western boundary.
Mr. Sizemore provided another hypothetical example: users ride their own bikes one mile to
a Transfort or MAX station, take the bus, then check out bikes. A board member commented
that’s exactly his situation; he lives one mile from a bus stop.
Ms. Lewin stated the Fort Collins Bike Library offers longer-term rentals and is staffed, but
doesn’t open until 9 a.m. so it’s not convenient for commuters. Bike Share might be called
FC Bike Library Express to take advantage of the library’s great brand recognition.
A demand analysis was completed in May 2014 with the assumption that MAX was
operating; it examines population and employment density.
There is an app to see bike availability; the operator would monitor stations to ensure there
are enough bikes to meet demand.
Farebox recovery is about 18% for Transfort. For Bike Share, it would be 30% to 40%.
A board member inquired about the cost of maintaining the bikes. Ms. Lewin stated regular
maintenance is built into the cost.
A board member inquired about the amount of greenhouse gas reduction based on the
estimate of 60,000 bike trips per year. Ms. Lewin stated staff will be able to estimate that
figure. In addition, they will be able to quantify benefits based on the bicycle miles tracked,
such as calories burned, etc.
Energy Policy Discussion
(Attachments available upon request)
Mr. Catanach summarized the recent discussions and asked board members if they’d like to have
another special meeting to focus on the Energy Policy.
Highlights of the Discussion
A board member inquired about the deadline. Mr. Catanach stated that the Climate Action
Plan (CAP) is scheduled to go to Council in February, and the two documents align and
support each other. Mr. Phelan stated it would be difficult to set goals for one document
without the other.
Chairperson Behm asked the board to consider forming a subcommittee to focus on and
fine-tune the main issues, since this is working well for privacy and other issues. He and
Vice Chairperson O’Neill can serve on the subcommittee, and he stated that other board
members are welcome to join them.
Chairperson Behm summarized the discussion at the August 25 special meeting. There was
consensus on the Energy Policy’s overall framework of six to eight topic areas, and they
changed some of the language. Version 10 that Board Member O’Neill emailed this morning
shows the top- level revisions.
Behm inquired about timeline considerations. Mr. Phelan stated that in the past, board
members asked staff questions about specific numbers and topics, such as goals for reducing
greenhouse emissions, which staff can research and bring to meetings.
A board member inquired about the land use component of the policy and asked how much
information they should include. She found info on zoning, which has a big impact on
energy.
A board member commented that at the special meeting, they discussed mentioning key
principles of related documents. Mr. Sizemore suggested choosing information in common
with the Energy Policy and referring to the specific document. A board member asked how