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HomeMy WebLinkAboutMinutes - Finance Committee - 11/16/2009 -_____C.Finance Mminlstratlon____I U 215 N.Mason —7.~2MFIoorI-crt CoLLins Fort Collins,CO 80522 970.221 .6108 97022t67824ax Council Audit ft Finance Committee Minutes 11/16/09 10:30a.m.12:00 p.m. Council Attendees:Mayor Doug Hutchinson,Mayor Pro Tern KeLLy OhLson,Ben ManveL City Staff Attendees:Darin Atteberry,Mike Freeman,Chuck Seest,Jim O’NieLL,Kraig Ecton,Steve Catanach,Heather Shepherd Others:Ann Hutchison,Chamber of Commerce,Jim Manire from James CapitaL FinanciaL,Robyn Moore from George K.Baum ADDrovaI of the Minutes from the October 19,2009 meeting. Kelly Ohison moved to approve the October minutes and Doug Hutchinson seconded the motion.The minutes were approved unanimously. Utility Projects and Related Financing Smart Grid Investment Grant from Dept.of Energy Includes:Advanced Metering Infrastructure (“AMI”),Demand Response Systems,Meter Data Management System (“MDMS”),CIS Billing System. •Grant Application for $30.8 M submitted to Dept of Energy on August 6th. •City received Notification of Award on October 27th. •Grant specifics WiLL be reviewed.Items approved will receive 50%match from the Federal Government. +Grant to be Finalized by mid-January 2010. Carbon Reduction RevoLving Loan Program Provide Low interest Loans to citizens for energy efficiency and renewabLe projects.Program simiLar to BouLder County &Berkeley,CaLifornia. °Ø3oLLins Solar Plant at the Water Treatment Facility Install 200 kW solar plant at the Water Treatment Facility Ognortunity: •Takes advantage of XceL’s incentives;$200,000 +$125 I MWh per year ($30,000/ year) •Land is currently avaiLabLe to accommodate the project. •DispLaces 200 tons of C02 I year Challenges: •RenewabLe Energy Certificates are soLd to XceL •Using Xcel’s incentives for a City project Ben Manvel asked why this wouLd be impLemented at the Water Treatment plant since it’s a photovoltaic project.The reason is mainly because adequate space exists to accommodate the project,and it is within Xcel’s service area.The SoLar Plant shouLd provide a significant portion of the plant’s energy needs. Financing for Project: •UtiLity responsibLe for funding 50%of Smart Grid Investment Grant (approximateLy $15M). •Other Specific Projects: V Carbon Reduction RevoLving Loan Program ($2-3M) V SoLar PLant at Water Treatment FaciLity ($1 .4M) Two OveraLL Funding Mechanisms: Increase Utility Rates to Customers to Replace Reserve OR Borrow Funds and Modify or ELiminate Rate Increase >Rate Increase: —ChaLlenge in Light of “pass thru”from PRPA —Additional burden in difficuLt economy >Borrow Funds (Debt Finance): Tool for the UtiLity on Large CapitaL Items —Fed.Program (Qualified Energy Conservation Bonds) •State Governor’s Energy Office administers “QECB’s” •City has direct aLLocation of $1.4 M but may request more. —Portion beyond QECS’s--use traditional revenue bonds. Committee members agree that overall,this is a good project and that next steps should be taken to move the project forward. Potential Refunding of the 2000 Sewer Bonds A.Refund the 2000 Sewer Bonds &Lower the interest rate (5.30%to 3.00%. B.Achieve net present vaLue savings of $300,000 C Fo?t CoLLins The City has $4 milLion in bonds issued in 2000 that are eligibLe to be caLLed as of 2010. These bonds couLd be repLaced with a Lower interest rate on the debt for another 10 years. The next step is that City Council wouLd vote on a bond ordinance during the first quarter of 2010. Other Business KeLLy OhLson asked what topics are upcoming for the future 2010. Mike and Chuck stated that as of now,some of the topics wilL be: •Update on Fund BaLances •Discussion of DDA projects/financing •End of year review on revenue s and expenses