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
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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