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HomeMy WebLinkAboutEnergy Board - Minutes - 02/05/2015Fort Collins Utilities Energy Board Minutes Thursday, February 5, 2015 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 Lisa Rosintoski, 416-2432 Roll Call Board Present Chairperson Greg Behm, Vice Chairperson Peter O’Neill, Board Members Darrin Johnson, Phil Friedman, Michael Doss, Nick Michell, Peggy Plate, Stacey Baumgarn, and Margaret Moore. Staff Present Lisa Rosintoski, John Phelan, Paul Sizemore, Lucinda Smith, Kevin Gertig, Cyril Vidergar, and Katherine Martinez Guests Rick Coen, John Fassler, and John Bleem/Plate River Power Authority Board Member Peggy Plate joined the meeting at 6:43 p.m. Board Member Stacey Baumgarn joined the meeting at 6:55 p.m. Board Member Marge Moore joined the meeting at 8:07 p.m. Meeting Convened Chairperson Behm called the meeting to order at 6:31 p.m. Delayed start due to State of the City. Public Comment None Approval of January 8, 2015 minutes Chairperson Greg Behm inquired whether any board members had comments on the draft minutes. Discussion Highlights • A board member commented that they had one revision to make to clarify their comments regarding Time of Use (TOU) rates, and would email the changes to the board secretary. • A board member requested revising the third bulleted sentence on page 5 to “…everything should be included as a potential heat source, such as electric baseboard heating and ground source heat pumps…” • The same board member also requested revising the third paragraph on page 7 to “…there were too many non-action items, such as staff and board member reports, to include in the Annual Report but they’re referenced.” Board Member Nick Michell moved to approve the minutes of the January 8, 2015 meeting with the revisions mentioned. Board Member Mike Doss seconded the motion. Vote on the motion: It passed unanimously. (Board Members Plate, Baumgarn, and Moore were not present during the vote.) Energy Board Meeting Minutes February 5, 2015 1 Staff Reports Roll Call Voting Customer Connections Manager Lisa Rosintoski recommended eliminating the roll call vote because it’s unnecessary for the minutes required by the City Clerk. Only board members who vote nay against a motion that has passed must be identified and explain why. Chairperson Greg Behm inquired how the vote would work instead. Assistant City Attorney Cyril Vidergar replied that the chair would ask for a verbal vote “All in favor?” and “Opposed?” The board agreed to verbal voting. 2015 Agenda Planning Calendar Ms. Rosintoski presented the draft agenda planning calendar and explained how agenda items align with the board’s 2015 Work Plan. Board Member Peggy Plate joined the meeting at 6:43 p.m. Discussion Highlights • John Phelan mentioned that updated information on the Georgetown University Energy Prize will be rolled out as early as next week. o http://fortzed.com/initiatives/lose-a-watt-energy-prize-for-5m-and-change/ o http://guep.org/ • A board member inquired about the lack of agenda items for two months of 2015. Ms. Rosintoski explained the agenda planning calendar is a constantly changing document, which gives staff flexibility to add and align items according to the City Council agenda, which operates on rolling six-month agenda planning calendar. Board Officer Nominations & Election Chairperson Behm opened the floor for nominations. There were none. Nominations from the January meeting stood as: Pete O’Neill for Chairperson and Phil Friedman for Vice Chairperson. Chairperson Behm called the vote for the slate of candidates. It passed unanimously. (Board Members Plate, Baumgarn, and Moore were not present during the vote.) Climate Action Plan (CAP) Environmental Services Director Lucinda Smith reported that the CAP presentation to City Council has been rescheduled to March 3. She will send a press release and notify stakeholders. Revisions to the draft CAP since early January were based on discussions with the consultant, The Brendle Group, and questions at public forums. Revisions include adding program costs for fuel switching, increasing program cost of the City’s role in efficiency programs, and revising the analysis to apply vehicle electrification only to cars, not trucks. Ms. Smith and Energy Services Manager John Phelan emphasized that City Council charged staff with developing the CAP as a framework, not an implementation plan. Board Member Stacey Baumgarn joined the meeting at 6:55 p.m. Model assumptions by 2030 include: for electric supply, 80% reduction in Plate River Power Authority emission factor; for existing homes and businesses, 36% more efficient, 25% of homes and 5% of existing commercial building are converted to all electric (heating, cooking, etc.); 22% of homes and 50% of businesses have installed solar. Other assumptions detailed goals for new construction, and vehicles and mileage. Energy Board Meeting Minutes February 5, 2015 2 Ms. Smith stated Preliminary Cost Estimates listed savings by 2032. Estimated costs would be a few hundred million net cumulative, about $200 million to $300 million. The next step is developing a CAP implementation plan for 2020 and a financing mechanism via a pilot public- private partnership. Likely immediate actions include a pilot integrated Utility Services Model for buildings, expand efficiency program partnership with PRPA, car/bike/ride share programs, advanced waste stream optimization, and public engagement via the Georgetown University Energy Prize. Key considerations include current analysis provides majority of pathway to 2030 goals. Role of Goal and CAP Framework (not detailed implementation plan). Upcoming steps include the March 3 City Council meeting, and a few more public stakeholder meetings. The Citizens Advisory Committee (CAC) met nine times and staff presented updates at four City Council Work Sessions. Discussion Highlights • A board member inquired about the timeline of achieving the goals. Ms. Smith replied that it’s not feasible to bring on electrification rapidly; work is needed to explore these high-level concepts in more detail for implementation in 2020 (and in 2030, 2040, and 2050). There will be a gradual ramp up to achieving the 2020 goals. • A board member inquired about the model assumption of percentages of private residents and commercial buildings. Ms. Smith replied that the requirement for businesses was based on a percentage of square footage. • A board member inquired about the model assumption that by 2030 22% of residential homes will have solar energy. Ms. Smith replied that is correct. Currently, about 1% of Fort Collins homes have solar. • A board member inquired whether the technology will be available and whether enough home and business owners will be willing to convert to all electric (heating, cooking, etc.) energy by 2030. Ms. Smith replied that it’s a good question and emphasized that the model assumption are goals. • A board member commented they have a problem endorsing the CAP because it needs more financial/economic information to back it up and show City Council what is realistically attainable. Ms. Smith stated she appreciated the comments and agreed there is a need to start work on an implementation plan after City Council adopts the framework. She stated she could email the estimate cost of fuel-switching to the board member. • Ms. Rosintoski suggested that if the board wanted to write a memo to Council about the CAP, they could consider recommending the need for more time to quantify the specific information. • A board member inquired about the percentage of total greenhouse gas reduction the 2030 model assumptions represent, to add context to the discussion and be able to better understand the big picture. • John Bleem of Platte River Power Authority (PRPA) mentioned that PRPA is an 18% owner in the Craig plant therefore doesn’t have the authority by itself to implement a decommissioning. PRPA staff ran the models and found they’d have to eliminate all coal energy. He emphasized that Rawhide Energy Station is the lowest-emitting coal plant in the state, and that it’s not realistic to take all the coal out of the equation; it’s a serious practical consideration. The electric supply system would have to be completely revamped in 15 years, and there’s a low confidence that this is possible. Energy Board Meeting Minutes February 5, 2015 3 • Mr. Bleem asked the board to keep in mind that there are 115 families at Rawhide, and when employees see charts that show the plant going away in 15 years, it causes concern. He stated they’re dedicated employees and would appreciate everyone being cognizant of that. • A board member commented that they represent the City of Fort Collin, but the discussion is on regional issues and they don’t have control over other cities. He stated it would be unwise to get rid of Rawhide if there are less efficient plants in the region, and the goal should include avoiding driving residents to other communities and commute to Fort Collins for work; if the focus is on numbers only, then nothing useful will be accomplished. • Ms. Smith agreed moving down this road must be done carefully to avoid harming people, and stated she believes Council would agree. A board member replied that it’s not that he’s not in favor of the CAP. Ms. Smith stated she understood the point and there were discussions about how to assess whether there needs to be an “off-ramp” if the planned course isn’t practical or feasible. • A board member inquired about a carbon tax. Ms. Smith replied the CAC recommended looking at the price of carbon turned on in the models; it makes a difference. She mentioned British Columbia passed a controversial carbon tax; citizens have since come to appreciate the different price signal and the tax provides a source of revenue; there are benefits from it. She stated staff is not proposing a carbon tax in Fort Collins. It could be one of a suite of funding mechanisms to be considered. • A board member commented on the difficulty of looking 35 years in the future and wondered if discussion covered that topic because so much could change in the next 15 years let alone in the next 40 years. Ms. Smith replied that most of analysis has been about 2030 and that they continued the same assumptions but with a growing rate for 2050. She stated everyone involved in the process understands the difficulty. • Chairperson Pete O’Neill suggested the Energy Board craft a memo creating principles out of the discussion tonight. Board Member Greg Behm moved to craft a memo outside the meeting to adhere to the previously agreed-upon process creating principles out of the discussion, with a final memo to be written by the chairperson. Board Member Stacy Baumgarn seconded the motion. Discussion of the motion • A board member inquired who would collect the information to write the memo. • A board member commented on appreciating all the work that has gone into the CAP and stated it isn’t clear that it’s an achievable goal, although they’re in favor of going for it with the understanding that it’s speculative. • A board member commented on the need to be more aggressive reducing greenhouse gas emission and that if high goals are not set the tendency is to not get anything done. If the goal is 80% reduction in PRPA emissions by 2030, even if the goal isn’t achieved, they would still have accomplished more than without an ambitious goal. • A board member commented on being disappointed in The Brendle Group’s modeling; it could cause rejection by the public because there are no specifics. They inquired what kind of balancing area is being discussed for renewables. From what source would the City buy and sell extra renewable power? And would it be affordable? • A board member inquired whether there’s a not-to-exceed “safety valve” to avoid the checkbook being empty at a certain point. Ms. Smith agreed on a boundary or “off ramp.” Energy Board Meeting Minutes February 5, 2015 4 • Mr. Phelan pointed out that the task given to the CAC and staff was to develop a plan that addresses these milestones, not an implementation plan; the CAP is meant to tell us what it would take to reach the goals. It’s a different question. • A board member stated they’re a strong supporter of the CAP but expects citizen outcry. • A board member commented that the board is being asked to write a memo to Council regarding the CAP, but if the Council asked the wrong question, does the board still want to say it would support moving forward with implementing the CAP? • Ms. Smith stated that the last time a CAP was developed, in 2008, Council set two goals without knowing how it would achieve that goal. She mentioned that the City of Seattle took two years to develop a framework and then afterward developed an implementation plan. • A board member commented that so much of the issue is linked to city, regional, national, and global cooperation, which makes it seem unrealistic to try to predict what will happen in 2050, and called it a bit of a fool’s errand. Board Member Marge Moore joined the meeting at 8:07 p.m. • A board member commented it’s not the uncertainty that is the problem, but rather the level of treatment, from traffic management to switching heat to electricity. • A board member suggested raising a point to City Council that the board recognizes uncertainties that need to be ironed out, but it’s about Council giving staff the resources to do so. • A board member commented that while the estimate is to achieve savings by 2032 there are a lot of expensive items that could drive costs up even further. Ms. Smith replied that there will be savings but also net costs. Chairman O’Neill moved that Energy Board make three points in a memo to City Council that the Energy Board: 1. Endorses the accelerated greenhouse gas (GHG) reduction goals specified in Resolution 2014-028. 2. Recommends that Council provide direction and resources to Fort Collins Utilities staff and the City of Fort Collins Sustainability Services to manage the development of a robust implementation plan for near-term actions needed to meet these goals. 3. Recommends this implementation plan contain cost limits and be reviewed and revised periodically. Board Member Stacey Baumgarn seconded the motion. Vote on the motion: It passed unanimously. Fort Collins Utilities Workplans, Challenges, Projects (Attachments available upon request) Utilities Executive Director Kevin Gertig discussed providing exceptional customer service, the effort for continuous improvement, and Utilities’ goal to create the safest utility in America. Fort Collins Utilities currently experiences two accidents per week. The reasons include slip, trips and falls and an aging workforce. Injuries are not always serious; nevertheless they make up a significant statistic. He stated Utilities will continue to provide exceptional customer service. Light & Power’s record of 99.982 percent reliability is impressive but we have outages due to aging infrastructure. Energy Board Meeting Minutes February 5, 2015 5 Vision: to provide world-class municipal services through operational excellence and a culture of innovation. Mission: Exceptional service for an exceptional community. Values: Stewardship, initiative, collaboration and teamwork, integrity, respect, outstanding service, innovation and creativity. Planning for retirements: the City takes two years to complete the on-boarding process for new employees. Staff with collaborate with Platte River Power Author (PRPA) on new training. Key objectives in 2015 include hiring the Light & Power Operations Manager, no lost time/improving safety culture, and completing Advanced Meter Fort Collins and maintaining metrics, among others. Preliminary design for the new Utilities Administration Building is in the works now. Mr. Gertig stated he’d like to give quarterly updates to the Energy Board on key objectives. Along with the new construction is energy optimization for the Utilities Service Center at 700 Wood Street. Discussion Highlights • A board member inquired whether broadband is under our purview. Other board members replied that it is. • A board member commented they’d like a holistic approach: financing programs, energy audits, becoming the general contractor – that kind of energy service provider. Mr. Phelan replied that kind of program has been discussed. • A board member commented on the suggestion of quarterly updates from the Utilities Executive Director. When the Energy Board was chartered three years ago, it was meant to keep a high-level focus rather than getting into the “weeds.” Mr. Gertig agreed and suggested thinking about what information board members would like, and to let him know. • A board member thanked Mr. Gertig for including safety as a 2015 priority and would like to see it added as a value. • A board member thanked Mr. Gertig for taking time to give the presentation and stated he would like to the quarterly updates to include a spreadsheet of detailed information. Board Member Reports None New Business None Future Agenda Review Chairperson O’Neill and Vice Chairperson Friedman will meet with Lisa Rosintoski and other staff next week to prepare the agenda for the March 5 meeting. The draft Energy Policy will be on the March agenda. Adjournment Board Member Greg Behm moved to adjourn the meeting. Board member Marge Moore seconded the motion. Vote on the motion: It passed unanimously. The meeting was adjourned at 9:02 p.m. Energy Board Meeting Minutes February 5, 2015 6