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HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 04/20/2010 - FIRST READING OF ORDINANCE NO. 043, 2010, APPROPRI DATE: April 20, 2010 SUMMARYAGENDA ITEM STAFF: Steve Catanach, Kraig Bader, FORT COLLINS CITY COUNCIL Dennis Sumner First Reading of Ordinance No.043,2010,Appropriating Unanticipated Revenue and Electric Revenue Bond Proceeds for the Smart Grid Investment Grant Project in the Light and Power Fund and for Bond Issuance Costs. EXECUTIVE SUMMARY Fort Collins Utilities(FCU) has been selected by the Department of Energy(DOE)for a Smart Grid Investment Grant (SGIG) award. The proposal and award included participation from the Cities of Loveland, Longmont and Fountain . for a total award of$36,202,527. The collaboration with the other cities was done to improve the chances of being selected by DOE—FCU was advised DOE wanted collaborative projects that included larger geographic areas and integrated funding. FCU projects proposed to the DOE totaled$31,483,001. The DOE has offered to fund 50%of the proposed projects ($15,741,500). The largest of the proposed projects was for the installation of an Advanced Metering Infrastructure (AMI) system. In addition to the AMI project, components of the Utilities Information Technology (IT) Long Range Strategic Plan related to the implementation of AMI and smart grid technology were included in the proposal. Expansion of the FCU fiber optic system and grid automation equipment was also included in the proposed projects. The Ordinance appropriates$18,101,264 in unanticipated grant revenues and$15,741,501 in proceeds from the sale of Electric Revenue Bonds proposed to be issued in Ordinance No. 001 of the Board of the Electric Utility Enterprise, for the purpose of-funding the Smart Grid project. It appropriates $258,499 for bond issuance costs. These appropriations are all in the Light and Power Fund. If this Ordinance is approved on First Reading, staff will bring a resolution to the Council on Second Reading, authorizing the City Manager to execute the contract with the DOE related to the SGIG and authorizing the City Manager to enter into partner agreements with each of the project partners: the Cities of Loveland, Longmont and Fountain, Colorado. BACKGROUND / DISCUSSION The DOE grant provides Fort Collins Utilities with an opportunity to install an AMI system, accelerate the implementation of its long range IT needs and to begin the modernization of its electrical distribution system. Construction, design and operation of the electrical system are fundamentally the same as they were 50 years ago. Today though,the electric industry,the country and the world are faced with significant issues that are the direct result of the use and production of energy. Measures to address these issues are creating momentum for change. Specifically, in relation to the electric utility industry,the issues of greenhouse gases produced through the production of electricity,the changing expectations of customers and the need to address and insure both the physical and cyber security of the electrical infrastructure must be addressed. Each of these elements-customer expectations, use of energy, security and the ability to reduce greenhouse gases-are elements of a smart grid as defined by DOE. The Department of Energy(DOE)has defined seven principal characteristics as focal points for the modernization of the existing electrical grid. These key elements are becoming recognized as the definition of a smart grid. The characteristics are: 1. Anticipates and responds to system disturbances 2. Enables active consumer participation 3. Operates resiliently against attack and natural disaster 4. Provides power quality for the digital economy 5. Accommodates all generation and storage options 6. Enables new products, services and markets 7. Optimizes asset utilization and operates efficiently April 6, 2010 -2- ITEM 21 The paragraphs below discuss each of these smart grid elements as defined by DOE. Descriptions of"Today's Grid" and the ideal"Modern Grid" are defined by the National Energy Technology Laboratory, a section of the DOE. Light &Power(L&P)staff is providing two additional descriptions: a third descriptive element that presents the current status of"Today's Fort Collins Grid"and a descriptive element that elaborates on"What the SGIG will do for FCU". The intent is to describe how the Smart Grid Investment Grant will help Fort Collins move towards each of the defined elements of a smart grid. 1. Anticipates and responds to system disturbances Today's Grid: Responds to prevent further damage. Focus is on protection of assets following system faults. Modern Grid: It will self heal by performing continuous self-assessments to detect and analyze issues, take corrective action to mitigate them and, if needed, rapidly restore grid components or network sections. It will also handle problems too large or too fast-moving for human intervention. Today's Fort Collins Grid: FCU's electrical system has an outstanding record of reliability. The almost all underground system is the envy of other utilities. However, as infrastructure ages, it will become more important to be able to monitor the health of the system components and predict failures before they happen. Investment in technology that predicts future failure and reconfigures the grid will need to be made in the future. Whatthe SGIG will dofor FCU: The transition to a self-healing grid will take years. Technology is currently under development that will provide the necessary physical control along with the analysis software necessary to solve how the system should be reconfigured safely and quickly during an event. The SGIG will allow FCU to install approximately 10 remotely controlled switches on the distribution system. The switches will have the capability to be controlled from the Light and Power Systems Control and Operations Center(SCO). Control will be manual by system operators. This will give staff the opportunity to gain experience in the use of remote switching and eventually automated controls that reconfigure the system automatically. Prior to the award of the grant, UP placed$125,000 peryear in both the 2010 and 2011 budgets for remote switching. The grant will add an additional$125,000 of funding to the project(DOE: $125,000, FCU: $250,000). Additionally,the grant application included$31,800(DOE: $15,900, FCU: $15,900)for integration of outage communications from the AMI meters into the existing Outage Management System (OMS). The project proposal also included funding for additional fault detection equipment on the system to help identify event locations. (DOE: $50,000, FCU: $50,000) 2. Enables active consumer participation Today's Grid: Consumers are uninformed and non-participative with the power system. Modern Grid: The smart grid will give consumers information, control, and options that enable them to engage in new"electricity markets." Grid operators will treat willing consumers as resources in the day-to-day operation of the grid. Well-informed consumers will modify consumption based on the balancing of their demands and resources with the electric system's capability to meet those demands. Today's Fort Collins Grid: FCU has a robust customer education program. Additionally, the implementation of the Opower program provides significant information to customers that allows them to better manage their electrical usage if they choose to do so. FCU also provides several demand response programs for customers to choose to use. Automated hot water heater control and air conditioning control are offered. A peak demand signal is also provided to customers to help them choose to control costs. What the SGIG will do for FCU: In addition to the AMI system,which will provide the foundational technology for providing information to customers, the SGIG proposal includes two elements that will provide significant support for the provision of additional information to customers and more demand response program choices for customers. The grant application included the implementation of a Meter Data Management System (MDMS). A MDMS is a software package that is designed to help manage and analyze the data collected by smart meters. During the original cost benefit analysis performed on the AMI system the size of the FCU system and the total cost of a MDMS made it impractical. However, the funding through the SGIG along with the implementation of smaller lower cost MDMS systems makes installation more attractive. The total amount included in the application for MDMS was$3,000,000 (DOE: $1,500,000, FCU: $1,500,000). April 6, 2010 -3- ITEM 21 The SGIG also includes a budgeted amount of$5,314,830 (DOE: $2,657,415, FCU: $2,657,415) for an enhanced demand response program. The long range IT plan identified the need to upgrade or replace the demand response software currently used by FCU to send the signal to participating customers'water heaters and air conditioners. In the nearfuture, FCU's existing software will no longer be supported and the devices used to signal and cycle the water heater and air conditioning units for customers will become obsolete. The project includes the upgrade of the software along with an additional 21,000 control devices. However, as staff has worked to refine the projects associated with the SGIG it has become evident that recruiting new participants in programs with the installation of an additional 21,000 devices over a three year period will be a challenge. The overall intent of the enhanced demand response programs is to meet the demand response goal of a 5% reduction in peak demand by 2015 and 10% by 2020 as detailed in the 2009 Energy Policy. Staff is currently reviewing other technologies and customer options to help achieve the demand reduction goal. Technologies under consideration are thermal storage and system voltage reduction utilizing the AMI technology for feedback on system performance. Staff estimates that through peak reduction gained with demand response programs, peak demand charges from Platte River to FCU will be reduced by approximately$1,260,000 per year. Recently, several citizens expressed concern in reference to the data Utilities will be gathering with the AMI system and Utilities control of devices through customers participating in the enhanced demand response programs. FCU recognizes the importance of customer confidentiality and the level of trust customers expect when providing information to secure their utility service. Customer records are protected by the FCU Customer Records Policy and FCU takes measures to ensure its compliance with federal and state regulatory standards. The Customer Records Policy is attached. The information FCU will be gathering though the AMI system is similar to the data currently collected for billing purposes. The primary difference is the frequency of the collection. Rather than monthly,the utility will be capable of reading meters every few minutes. The intent is to have the data available for the customer to help them better monitor their costs and usage and to enable customers to make better decisions about their usage. The existing demand response system has been in place since 1982 for electric water heater control and since 2007 for air conditioner control and has only been installed for customers who have volunteered for the program. Load control through the enhanced demand response programs in the SGIG will be voluntary programs just as they are today. It is expected that air conditioner control will be accomplished through an in-home thermostat(IHT) that will allow the customer to cancel a load-control request, should they wish to do so. AMI meters will also lay the path to allow consideration of dynamic rate structures such as Time-of-Use(TOU),Critical Peak Pricing (CPP)and other rates. A cost of service study is currently underway in Light and Power. Once the cost of service study is completed, the utility will begin rate conversations with Council, the Electric Board and the community. Any changes in rate design will include a transition period appropriate for the change being considered. 3. Operates resiliently against attack and natural disaster Today's Grid: Vulnerable to malicious acts of terror or natural disasters. Modern Grid: The Smart Grid will incorporate a system-wide solution that reduces physical and cyber vulnerabilities and enables a rapid recovery from disruptions. Its resilience will create an image that intimidates would-be attackers. It will also be less vulnerable to natural disasters. Today's Fort Collins Grid: As noted,the reliability of the FCU electrical system is well above national standards. The high reliability is due to the responsiveness of electrical crews when a problem occurs,the design standards used, and the Council direction that all lines should be underground. The other arena where security is of significant concern is cyber security. The control systems and communication infrastructure that is used throughout the system must be secure from hackers. FCU is not required to comply with North American Electric Reliability Corporation (NERC) Critical Infrastructure Protection (CIP)standards. However, FCU's goal is to comply with those design standards. FCU currently does not completely meet all of the NERC-CIP standards and had planned and budgeted for several projects in the 2010-11 budget to help move toward compliance. What the SGIG will do for FCU: The SGIG provides $208,820 towards the implementation of cyber security enhancements. Security enhancements were budgeted at$385,000 in the 2010-11 budgets. The SGIG will provide funding at 35% ($208, 820) of the total project cost. The intent is to bring the Utilities smart grid infrastructure into compliance with NERC-CIP design standards. Although FCU is not required to comply, it is prudent to adopt the standards as they apply to a distribution system. FCU is not required to, and will not, report to the NERC,which is the most onerous component of the CIP standards. April 6 2010 -4- ITEM 21 4. Provides power quality for the digital economy Today's Grid: Focused on outages rather than power quality problems. Slow response in resolving power quality issues. Modern Grid: It will monitor, diagnose, and respond to power quality deficiencies resulting in a dramatic reduction in the business losses currently experienced by consumers due to insufficient power quality. Today's Fort Collins Grid: FCU currently receives relatively few power quality complaints from customers. Typically, power quality problems are associated with either internal issues within a facility, or interference from adjacent properties. WhattheSGIGwilldoforFCU: As Fort Collinsmovesforwardandlargernumbersofdistributedgenerationunits are connected to the FCU system, it will become more critical to monitor power quality. The SGIG proposal included a project to install waveform recording equipment to monitor high speed events on the system and to install meters capable of recording high speed electrical events at our largest customer sites. The proposed project is$400,000 (DOE: $200,000, FCU: $200,000) 5. Accommodates all generation and storage options Today's Grid: Relatively small number of large generating plants. Numerous obstacles exist for interconnecting Distributed Energy Resources (DER) Modern Grid: It will seamlessly integrate all types and sizes of electrical generation and storage systems using simplified interconnection processes and universal interoperability standards to support a "plug-and-play" level of convenience. Large central power plants including environmentally friendly sources,such as wind and solarfarms and advanced nuclear plants, will continue to play a major role even as large numbers of smaller distributed resources, including Plug-in Electric Vehicles, are deployed. Today's Fort Collins Grid: As with most electrical distribution systems the FCU electrical distribution system was designed to be a one-way power delivery system. Small generation resources such as solar panels and small wind turbines can feed electricity back into the grid. At current levels these distributed generation resources have not created any issues. However, as we look to the future and envision solar panels becoming cost competitive or lower than the cost of energy supplied by the local utilities, it becomes evident that the electrical distribution infrastructure could serve a role for which it was never designed. The grid could become a two-way channel for electrical delivery and sales. Additionally, the use of the energy stored in plug-in-hybrid-electric-vehicles to stabilize the intermittent generation from some resources will also tax the existing system. What the SGIG will do for FCU: Installation of the AMI system will provide feedback to the Utility on current system conditions. This Information can then be used to analyze the system and in some cases help manage how and when distributed energy resources feed into the system. With customer consent, plug-in-hybrid-electric-vehicles could be used as stored energy devices. When the energy stored in a vehicle is needed to supplement the grid or level the production from intermittent resources, the utility could contract with customers to purchase the power from their vehicles. 6. Enables new products and markets Today's Grid: Limited wholesale markets still working to find the best operating models. Not well integrated with each other. Transmission congestion separates buyers and sellers. Modern Grid: The Smart Grid will link buyers and sellers together—from the consumer to the Regional Transmission Organization(RTO). It will support the creation of new electricity markets from the home energy management system at the consumer's premise to technologies that allow consumers and third parties to bid their energy resources into the electricity market. The Smart Grid will be transactive and will support consistent market operation across regions. Today's Fort Collins Grid: Utilities within the state of Colorado do not currently trade through an RTO or Independent System Operator(ISO)model for wholesale electricity sales today. The DOE's intent with this smart grid April 6, 2010 -5- ITEM 21 component is to insure that information from either an RTO or ISO(if developed) is flowing to the retail customer and that they then have a choice on their cost of wholesale electricity. What the SGIG will do for FCU: The installation of a communication infrastructure including the optional home area networks proposed in the FCU AMI system will support the development of new product and service options that can be delivered via the system to consumers. 7. Optimizes assets and operates efficiently Today's Grid: Minimal integration of limited operational data with Asset Management processes and technologies. Siloed business processes. Time based maintenance. Modern Grid: Operationally,the Smart Grid will improve load factors,lower system losses,and dramatically improve outage management performance. The availability of additional grid intelligence will give planners and engineers the knowledge to build what is needed when it is needed, extend the life of assets, repair equipment before it fails unexpectedly,and more effectively manage thework force.Operational,maintenance and capital costswill be reduced thereby keeping downward pressure on prices. , Today's Fort Collins Grid: FCU is currently in the process of implementing an Asset Management program. The intent of the program is to help inventory utility assets, assess infrastructure condition and plan for maintenance and replacement through risk-based modeling. What the SGIG will do for FCU: The AMI system will be a communication system that provides information on the operation and health of components on the system. The enhanced information will allow FCU to manage and schedule maintenance of the system more efficiently and respond to outages more quickly. Workforce efficiency will also improve if outages can be avoided and problems addressed through scheduled maintenance. PROJECT EXECUTION PLAN During the interim period between the announcement of the intent to award the grant and now,a team of City staff has been working to refine the tasks proposed in the original grant application. The table below provides a general summary of the tasks associated with the project. Staff is currently developing Request-for-Proposal (RFP)documents for a Project Manager/Integrator to assist with the project. The intent is to hire a consulting agency with experience tying the different components of the project together in order to insure a seamless integration between our existing systems and the new. Staff is also in the process of preparing RFP's for the AMI system, the MDMS system and for a Cyber security evaluation. FINANCIAL IMPACT It is estimated the following annual operational savings can be achieved by Light and Power through the installation of an AMI system: • Labor and operational expenses for meter reading $495,755 • Meter accuracy and registration $347,944 • Theft from manipulation of meters $268,225 • Load control (avoided demand during PRPA peaks) $185,760 • Labor dedicated to move-in/move-out and meter changes $ 28,410 • Purchase of Xcel data for rate design 35,574 TOTAL $1,361,668 In addition to the annual savings above FCU also sees a significant one-time savings related to improved cash flow achieved by reducing the lag time between meter reads and billing. The one-time benefit is approximately$1,600,000. April 6, 2010 -6- ITEM 21 As noted above, staff did anticipate some additional load control benefit in the original AMI project benefits. However, in the SGIG grant proposal a considerable expansion of the program is anticipated. The operational savings from the enhanced demand response projects will reduce utility and customer costs by approximately an additional$1,074,240 annually. Calculating the payback period using the values above and a 3.5% interest rate the entire $31.5 million investment has a pay-back of just over 13 years. The pay-back is just over 7 years for the $15.7 M cost to the City. It is more difficult to apply a cost recovery model to the remaining smart grid elements proposed in the SGIG. Many of the benefits gained will enhance operational reliability and performance and improve customer interactions with the utility. As detailed above, the total project cost submitted to DOE was $36,202,527. The project cost of the City of Fort Collins is $31,483,001; Fountain's project cost is$4,247,000; Loveland's project cost is $300,000; and Longmont's project cost is $172,526. The DOE will provide 50%funding for each of the projects. In order to process the grant funds, the DOE matching funds provided to each of the other cities along with the total Fort Collins project cost must be appropriated by City Council. Staff and the Electric Board are recommending the Council approve an appropriation for the project totaling$33,842,764. This will be offset with SGIG grant revenue of$18,101,264. A Fort Collins Utilities match is proposed to be funded through the issuance and sale of Electric Revenue Bonds, which will be considered on First Reading by the Electric Enterprise Board on April 6, 2010. In addition to the appropriation for the SGIG project, the proposed appropriation ordinance appropriates$258,500 in the Light and Power Fund for bond issuance costs. A table summarizing the appropriations follows: 50% DOE Grant Unanticipated SGIG Grant Revenue for Fort Estimated Bond Appropriation Project Collins) Proceeds Required Fort Collins $ 31,483,001 $ 15,741,501 $ 15,741,501 $ 31,483,002 Fountain* $ 4,247,000 $ 2,123,500 $ 2,123,500 Loveland* $ 300,000 $ 150,000. $ 150,000 Longmont* $ 172,526 $ 86,263 $ 86,263 Total $ 36,202,527 $ 18,101,264 $ 15,741,501 $ 33,842,765 Estimated Bond Issuance Costs $ 258,499 $ 258,499 Total Estimated Bond Proceeds $ 16.000.000 Total Appropriation _$ 34.1012&4 *The expense and revenue will offset each other for the Loveland, Longmont and Fountain's portions of the grant project. Since Fort Collins will administer the grant for the three other cities, the funds will flow into and out of the Light and Power Fund. April 6, 2010 -7- ITEM 21 SUSTAINABILITY: ECONOMIC, ENVIRONMENTAL AND SOCIAL IMPACTS The SGIG supports a future where customers can choose the option of being engaged in the management of their energy usage and cost.Distributed generation(such as solar panels)is prevalent throughout the electrical system and customers can choose to contribute to the reduction of the use of fossil fuels in electrical generation. In addition, a future where Fort Collins' electric grid better supports customers having plug-in hybrid electric vehicles or electric vehicles can also help further reduce greenhouse gas emissions. More efficient operation and maintenance of the electric grid, as well as the ability for Utilities to reduce or eliminate the fleet of meter reader vehicles through automated meter reading will reduce emissions. In order to deliver the services and provide the support that our customers deserve and will require in the future, it is critical that FCU begin modernizing the electrical system. Modernization begins with the implementation of AMI. Prior to the SGIG, AMI provided a positive business case because of its inherent operational savings in the meter reading operation. The SGIG funding enhances the scope and scale of the projects Utilities can accomplish as we begin to implement smart grid technology. One of the primary social impacts, as described in some of the items above, will be the opportunity for Utilities to improve on its relationship with customers. Many of the primary interactions that customers currently have with Utilities' staff will be enhanced with information available from, and operating flexibility provided by, the SGIG. A customer calling in to request electrical service at an existing location can be provided electrical service immediately (using computerized control of the meter) by the customer service representative receiving the call without the need to dispatch a technician, saving the customer time and the Utilities labor and transportation expenses. Since the electrical grid will be able to identify problems as they occur and then dispatch a repair crew if necessary, a customer calling in to notify Utilities about an outage can be given the status of the problem and an approximate time for repair. If a customer calls to report an outage in an area that has not been identified by the system as having a problem, the customer service representative can "test" the customer's meter remotely in a matter of seconds to determine if the problem is on the Utilities' system or is a problem on the customer's side of the meter. These enhanced abilities to address customers' issues in a more timely fashion should enhance customers' trust in their Utilities. Currently, Utilities uses a staff of meter readers and a group of vehicles to collect information necessary to bill customers for utility service. A significant portion of the savings in this project justification is the reduction in force, and related support expenses, related to automating the meter readings. The positions affected by this project have been identified and the individuals in these positions notified thattheir positions will be affected by the implementation. Efforts are underway to work with these individuals to find alternative positions in Utilities and/or to retrain these individuals for other careers. Any vacancies that occur in the affected positions prior to the completion of the project will only be filled on a contract basis as necessary. This projectwill not add a significant number of new positions to Utilities staff or directly provide additional employment in the community. However,as more customers learn about their options for energy savings, it is anticipated that the demand for additional weatherization contractors and energy efficiency consultants may increase. STAFF RECOMMENDATION Staff recommends adoption of the Ordinances on First Reading. BOARD/ COMMISSION RECOMMENDATION At its February 3, 2010 meeting, the Electric Board voted unanimously to recommend that City Council approve the appropriation of funds. April 6, 2010 -8- ITEM 21 PUBLIC OUTREACH The proposed project includes extensive customer education and engagement. The intent of the project is to make information and data available to customers to allow them to make informed decisions related to their energy usage. Critical to the success of the program is making the customers aware of the information and tools thatwill be available. The excerpts below were the elements proposed in the original grant application "Information Availability to Customers The Utilities' Smart Grid Web sites will provide the means for customers to track energy usage by logging onto the "AMI Meter" Web page. This information will be linked to tips regarding how to conserve and information about efficiency programs, rebates and incentives. Customers who participate in the load management program will be provided with useful information through their in home displays, in-home thermostats, water heater control switches, and other preferred communications media such as text messages, online accounts or e-mails. A Fort Collins Smart Grid project Web site will provide for information sharing between all utilities in Colorado.Online information regarding Fort Collins, Loveland, Longmont and Fountain's projects will enable others to see the benefits of the Smart Grid. Customer Outreach and Operations Customer outreach and education are two of the utilities' fundamental operational principals. Fort Collins' outreach program will inform customers of progress toward sustainability goals and offer transparency for utility decisions. Fort Collins will provide information and education on Smart Grid technologies as well as their impacts on customers and the distribution system. The utilities' organizational messaging will emphasize the importance of the technology to support great service and the customer's role in demand side management, load control and energy conservation. The utilities have robust marketing, communications and education programs in place to support the success of Smart Grid. All communications, including call center functions are managed in-house, providing a continuum of customer-facing services. Customer communications can be coordinated through a variety of tools including: • Bill inserts • Web site (including City Web sites) • Weekly electronic newsletters and city newsletters • News releases to local print media • Coordinated residential, commercial and key accounts support • Targeted communications for specific areas of program implementation such as meter installation, deployment of in home displays, efficiency and renewable energy, etc. • Well-established education programs (Q&A sessions/seminars) including fact sheets distributed at city facilities Many business process changes will be required prior to the deployment of the Smart Grid. The following are a few of the key processes the Utilities will review: new cyber security standards and procedures, service switch procedures, service restoration, reliability reporting, power system operational status reporting and posting, customer outage notification methods, real time operation of the T&D system, asset management strategies with the availability of more accurate and timely data on the status of the system will all need to be redesigned. The Utilities will establish a change management plan to drive results in each deployment stage." ATTACHMENTS 1. Customer Records Policy 2. Electric Board minutes, February 3, 2010 3. Powerpoint presentation ATTACHMENT 1 Customer Records Policy—December 15, 2009 L PPuryose Fort Collins Utilities is subject to the Colorado Open Records Act and Fort Collins Municipal Code §26-26, which governs the accessibility of public records. The purpose of this policy is to provide guidelines for Utilities' staff when deciding: (1) when public inspection of customer records is allowed; (2) who is entitled to have access to these records; and (3) how and when to respond to a records inspection request. 11. Restricted Records Except as provided in Sections III. and IV. below, the Utilities shall not permit any person to inspect any of the following records of its customers: 1. customer's name if in disclosing such name the customer's address, telephone number, e-mail address,personal information or personal habits can be linked to the customer; 2. customer's address; 3. customer's telephone number(s); 4. customer's e-mail address(es); 5. customer's personal financial information, such as billing amounts, credit information, and usage statistics; and III. Unrestricted Records The following records of the Utilities' customers shall be subject to inspection by any person: 1. customer's name, provided giving such name does not link the customer to the customer's address, telephone number, personal financial information or personal habits; and 2. any of the customer's records when provided for inspection in an aggregate or statistical form that prevents the customer from being linked to the customer's address, telephone number, e-mail address,personal financial information or personal habits. IV. Persons Permitted Access Only the following persons shall be permitted to inspect a customer's restricted records, which are described in Section II. above: 1 1. the customer; 2. any person designated by the customer in the Utilities' Release of Records form as having the right to inspect the customer's records; 3. if the customer is a tenant, the customer's landlord, any property manager hired by the landlord and any other person acting on behalf of the landlord (if designated by the landlord in the Utilities' Release of Records form) may have access to the customer's restricted records; however, access is limited only to those records related to the rented premises that pertain to the billed utility charges (paid or unpaid) or which pertain to the level of electric usage(if such information is needed for electrical repairs or improvements to such premises) and does not include any of the tenant's personal credit, financial information or social security number; 4. a customer's parent if the customer is under the age of eighteen (18) or under any kind of legal disability, such as mental incompetence; 5. any legal representative.of the customer duly appointed by a court, such as a legal guardian or conservator; 6. if the customer is deceased, the personal representative of the customer's estate; and 7. any of the following peace officers acting within the scope of their authority and in furtherance of their duties as peace officers and who provide satisfactory evidence that the requested inspection is reasonably related to their authority and duties as peace officers: a. level I peace officers, as defined by State law (see, C.R.S. Section 18- 1-901[3][1][1], which include the following peace officers who have "basic peace office certification" from the Colorado Peace Officers Standards and Training Board: (1) police officers of any Colorado town, city, or city and county; (2) undersheriffs and deputy sheriffs of any Colorado county or city and county; (3) Colorado State Patrol officers; (4) marshals of any Colorado town; and (5) security officers of Colorado institutions of higher education, such as Colorado State University; b. level Ia peace officers, as defined by State law (see, C.R.S. Section 18- 1-901[3][1][U][A]), which include the following peace officers; (1) the sheriff of any Colorado county or city and county; (2) the district attorney, assistant district attorney, deputy district attorney and special deputy district attorney of any Colorado judicial district; (3) the Colorado Attorney General and Deputy Attorney General, and any 2 deputy or assistant attorney general assigned a law enforcement function in the Attorney General's Office; (4) an authorized investigator of any county attorney of a Colorado judicial district, of the Colorado Attorney General, or of the executive director of the Colorado Department of Public Safety; (5) agents of the Colorado Bureau of Investigation; (6) parole officers and community program agents of the Colorado Department of Corrections' Division of Adult Services (7) the inspector general of the Colorado Department of Corrections and any authorized investigator of the inspection general; and (8) officers of the Southern Ute Indian and Ute Mountain Indian police forces who have "basic peace officer certification: from the Colorado Peace Officers Standards and Training Board; and c. .level H peace officers, and defined by State law (see, C.R.S. Section 18-1-901[3][I][III], which include the following peace officers: (1) inspectors of the Colorado Department of Revenue's Liquor Enforcement Division; (2) investigators of the Colorado Department of Revenue's State Lottery Division (3) investigators of the Colorado Department of Revenue's Division of Gaming; (4) the director of the Colorado Department of Revenue's Division of Gaming; (5) the executive director of the Colorado Department of Revenue when conducting an investigation related to gaming; (6) any fire arson investigator appointed by the chief of any fire department if approved by the sheriff or chief of police of the jurisdiction in which the fire investigator performs duties; (7) any officer, guard or supervisory employee of the Colorado Department of Corrections; (8) a security guard employed by the State of Colorado; (9) security officers of the State of Colorado; (10) district wildlife managers and special district wildlife managers of the Colorado Division of Wildlife; (11) parks and recreation officers of the Colorado Department of Parks and Outdoor Recreation; (12) investigators of the Colorado Department of Racing Events and their supervisors, including the director of the Colorado Division of Racing Events; and (13) railroad peace officers employed by a railroad corporation to investigate offenses against the railroad corporation. V. Responding to Record Inspection Request Except for verbal requests for routine and clearly identified records that can be quickly and efficiently produced for immediate inspection or copying, all requests for inspection or copying of public records must be in writing and must be specific as to the record requested. When a request is received to inspect a customer's records, it shall be responded to in one of the following ways. 3 1. If the record requested is not in the Utilities' custody or control, the person making the request shall be promptly notified verbally of this fact, and in writing if requested by the person, which notification shall state, if known, the reason for the absence of the record, the location of the record, and what person has custody or control of the requested record; 2. If the record requested is in the Utilities' custody or control, but the person requesting the records is not entitled under Section II of this policy to inspect the record, the person shall be promptly notified verbally of this fact, and, if the request was made in writing, the response shall be made in writing. The notification shall state that the person is not entitled to inspect the record under C.R.S. Section 24-72-204(3)(a)(IX); 3. If the record requested is in the Utilities' custody or control, readily available, and not subject to other confidentiality restrictions, and the requesting person is entitled under this policy to inspect the record, the record shall be promptly given to the person; or 4. If the record requested is in the Utilities' custody or control, is not readily available, and the requesting person is entitled under this policy to inspect the record, the record shall be given to the person within three(3) working days after the request, unless there are"extenuating circumstances." If there are "extenuating circumstances," the record shall then be given to the person within a total of ten (10) working days after the request. "Extenuating circumstances" cannot be applied to a single, specifically identified document,but apply only if: a. The request is broadly stated encompassing all or substantially all of a large category of records and the request is not specific enough for Utilities staff to prepare or gather such records within three (3) working days; or b. The request is broadly stated encompassing all or substantially all of a large category of records and Utilities staff is unable to prepare or gather such records within three (3) working days because Utilities staff needs to devote all or substantially all of its resources to meet an impending deadline or period of peak demand either unique or not predicted to recur more frequently than once a month. VI. Fees and Charges Fees and charges for making copies, searching and retrieving records, certifying records shall be consistent with the Fort Collins City Clerk's Public Record Policy, as amended. VIL Inspection Request Not Addressed by Policy When an inspection request is received relating to a customer's records and the request does not appear to be addressed by this policy, the City Attorney's office should be contacted for advice concerning how to respond to the request. 4 Approved and adopted b B a onis Utilities Executive Director Date of Approval and Adoption 5 ATTACHMENT 2 Smart Grid Investment Grant Project and Appropriation Excerpt from approved Electric Board Minutes, February 3, 2010 Mr. Catanach presented information on the appropriation of funds for the Smart Grid Investment Grant Project. The State has allocated $5 million in Qualified Energy Conservation (QEC) bonds. Staff anticipates moving forward with revenue bonds to raise the remaining $10.7 million in matching funds. A significant component of the project has been dedicated to the enhanced demand response program at a total cost of $5,478,197, including installation of 21,000 load control elements across three years. This is an aggressive goal to manage such a large number of installations over this time frame, so staff is currently exploring other opportunities for demand response programs. The water component is not part of the Smart Grid Investment Grant or meter project, but the Water Utility will derive a great benefit in security and communications. Staff will seek an appropriation from Council for the entire project. The funds will pass through the City of Fort Collins as administrator of the Department of Energy (DOE) grant. Staff will seek $33,842,764 in the appropriation, which is the figure without the matches from the cities of Loveland, Longmont and Fountain. Motion: In light of the $15.7 million DOE matching grant, Board Member Wolley moved the Electric Board recommends that City Council approve the appropriation of funds in the sum of approximately $33,842,764 for the Smart Grid Investment Grant project. Board Member Bihn seconded the motion. Vote on the motion: It passed unanimously. ATTACHMENT 3 Smart Grid Investment Grant April 20 , 2010 Steve Catanach, PE City of Light & Power Manager Fort Collins .f� 1 SGIG Executive Team , , R ; Steve Catanach Dennis Sumner Kraig Bader Angel Anderson City of Fort Collins 1 Management Team Bill Hamilton Lori Clements-Gr Dan Coldiron Paul Folger _ Eric Dahlgren C Not Pictured: M'lhILadd `ty ColUns Bill Freeman Quentin Antrim Mary Evans 3 Jon Haukaas Background ■ Light and Power has been offered a Smart Grid Investment Grant for $ 15 . 7 M (total project $ 31 . 4M ) • Advanced Metering Infrastructure ( "AMI " ) • Enhanced Demand Response Systems • Meter Data Management System ( " MDMS " ) • CIS Billing System • Cyber Security • Other Minor Items in Grant Application Fort Collins . l- 4 2 Smart Grid Investment Grant Components Grant Line Items ++ : • AMI Smart Meters $ 19 . OM # • Demand Response Systems 5 . 5M • Meter Data Mgmt System 2 . OM • CIS Billing System 0 . 9M • Cyber Security 0 . 5M • Subtotal $27 . 9M Other Items 3 . 5M ** Total Grant Proposal $31 AM FOI't�hS 5 Financial Benefits Annual operational savings from AMI Labor and operation expenses for meter reading $4955755 Meter accuracy and registration $3475944 Theft from manipulation of meters $2685225 Load Control (avoided demand during PRPA peaks $ 1855760 Labor dedicated to move-in / move-out and meter changes $285410 Purchase of Xcel data for rate design $355574 Subtotal $ 1 , 361 , 668 Fort Collins 6 3 Financial Benefits Annual operation savings through SGIG Enhanced Demand response program $ 1 , 0745240 One time benefit One time savings related to improved cash flow . Reduced lag between meter reads and billing . $ 156005000 Using a 3 . 5 % interest rate the payback is just over 7 years after grant assistance Cttyof ,,Fort�l�s 7 Appropriation structure City of Fort Collins Matching Appropriation Funds DOE Funds Ordinance Fort Collins $ 15 , 7415501 $ 1557415501 $311483 , 002 Fountain $2 , 1235500 $2 , 1235500 Loveland $ 150 , 000 $ 150 , 000 Longmont $865263 $865263 Totals $ 1557415501 $ 1891019264 $33 , 8429765 City of Fort Collins 8 4 DOE Definition of a Smart Grid 1 . Anticipates and responds to system disturbances 2 . Enables active consumer participation 3 . Operates resiliently against attack and natural disaster 4 . Provides power quality for the digital economy 5 . Accommodates all generation and storage options 6 . Enables new products services and markets 7 . Optimizes asset utilization and operates efficiently �,.�t_ Collins 9 Major Project Areas 1 . Advanced Metering Infrastructure and Meter Data Management Systems 2 . Distribution Automation 3 . Cyber Security 4 . Enhanced Demand Response Programs and Customer Engagement City of Fort Collins 10 5 Advanced Metering and Meter Data Management L\ � l OtNS .t .IlONi11N "ttltlait ptgl Y I r p114$ �';etWtlUi t• Y0.G wPlO l _ ` r� 50 81� 652El I f .�,. .. ,.. r Electromechanical meter New "Smart Meter" Fort Collins Light & Power of currently has 55 ,000+ in service rthS 11 A Y .r I►.1. 1111 M ono b « �O.1pnpAOesbMrp � • B • • ::M1ll • O b� • � I CC--t 4 S MINN. lortain- rrre sar: c eta. P.n 1 :n i__�Ift In � _ SC �IPn+r itl gtltPwlp Vol MIND- VV x6: z: Ip/0p- IM •. �c 51 IpW- Ar JwrNelr yru{e.�YUW nr rl Y Vlllppl /11114011 gflgMl /YI/roll IYI11pp1 lllmle WWI YIMIO .IN.Y W i WY R.�1rYFW: rWN lrloq rdrr �Ib•W �ner.r rr..y.w Twr]l•.l��r10Mllrprr.ltbar rrowrrr✓<er�r.�...fe11'rl irbilr prrarYMbrr.l wrh :anwi:arpn a 1p� mrtrmulmlr Iiin r fir.rraras...r r rp r r•1 a f r r r R%n Tlt rrp,na Yrrl.YWlr�rw p{�! Co Collins 12 6 udcDolson.'rPelectsoNe.cwn Lugout City of Fit Collins Home Readings . AMI . Analysis . ImpvVEx Type & Active Subject Dwe4ene A woof Fran To DayIJ Ards Imported-, MDM 11589 15315 1 2M4109 92110/10 fi) AMI Electric 487 19622 12/23/09 02110/10 50 AMI Water 325 13164 12a3109 02110/10 46 ColledorsMuolred Nodes 13 19548 12M3109 0211 ono 46 15360 12/30/09 92M 0110 43 10968 12/23/09 02/10/10 41 19538 01 M4110 02/10/10 38 • 15333 12/30/09 02MOM0 33 _ II Job Hartle Load Ron Odcowelatl 15340 01M X10 02110/10 29 • tWt MIDMIlW�urpe_Nstory 211 W20102:300 000 AM Successful 22026 01N5110 02110/10 29 MDM Import 211 01201 0 2:30:00 PM Successful � 1M1 Sync Datapoinis Skipped not run Unknown � Od�eNsl Date Cycle Cord III: 01 as O water o FIa 40 xo 24 � � 3J 31 20 2) 18 A R A A A a R R a a a s `s rs 13 Vantage Portal — Dashboard Tab pit Home g Y r IOfim St �� 30e F weytlYc I.r ■ 1]..�.r weWnm.n.rr.. ■rlc onnr 'Ira 004 a- Iw ar .r .r Iw ... A f.. Cla.b IUNN I kM► Md�A� ......, ........r. . rw . wfgsa ....r. .....n .w. . nw ..ra_. �—.. � � .n•r.r or—Y Yr. y...r r.etr Y.r .nw O rw lYlY wwwt a.w./.N. IYw .��.. awe rl1r..I�.YYai.�.fkYY c.w... M. \eabelwra QYY ' w.m —�.r nsmu ■ TENDRIL City of Fort Collins 14 7 Explore Tab cow - w,„ • y .., OR .. q .. to - _ O..CAY M1YlIOF N' ilar a. ,nor k ,oOY N100. 0.niWf .-r ww ..wow F.E.um" Mia root, I a.r re w 11 ` .n ,m. ." ac ,w I.. .,. .not iJe P. .rot .not .,not • rw.n.Yr uot..wno . o.o.n TENDRIL 15 Grid Automation Remotely operated Pad mounted Switchgear Fault indicator Power Quality City or Fort Collins monitoring 16 8 Grid Automation Feeder Fault 00tatEd . Source 1 breaker opens Switch 1 Switch 2 Source 1 Normally Normally Closed Closed Normally Switch 3 Open Switch 5 Switch 4 Source 2 Normally Normally Closed Closed �.Fort�l�s 17 Cyber Security *Objectives •Review Security policies & practices •Review standards •ID internal and external threats •Equipment vulnerabilities •Insure customer privacy •Comply with Industry Standards •National Institute of Standards and Technology (MIST) •North American Reliability Corporation (NERC) •Critical Infrastructure Protection (CIP) 0*,e Uns 18 9 Enhanced Demand Response and Customer Engagement Product Innovation Answering the needs of the utilrty rf&5 rc.7�e Next Generation Superstat Screen irr Mr weuge Imr, i nt sane 4dus r xw rrn �.6,UPfl�m'a . .T "d SET A F74 WTAT /�n 72 74• < > M dM� MENU rrm , 720 M Po/�aa- UAnM Nu x e p�yp' IpID AT :. . 74 F* 72 S.oe /Y IMEAT- tw m vM hys 1 l hrd tWd 4p IBIII ., - ,nstaua>en M•m, \ 1&od•r1731 PM Man .Fnwxing Y"pow --- of f7i7a w Aar, " 3" bMrQOOtM nvnrAW a'WY MMOFT's n' wtworl. SH npt Os b .. . . - - ,. Nf a/ am are W Dupwsnos Min n aDo,AywrMid 10M PM.Uopn M TM,rpstar Data trapbmiiwllaraitiYl \ IIDYE V Oa■ M ar QOTOGOCM e ort�l�s 19 Enhanced Demand Response Programs •Demand Response (started in 1982) *Voluntary customer participation *Automatically cycles Air Conditioner & Water Heaters (Hot Shot) *Reduces customer' s and Fort Collins Utilities costs *Peak Demand Reduction towards Energy Policy goal of 5% by 2015 *Usage reduction through enhanced customer information *Federal Energy Regulatory Commission (FERC) study indicated •High potential for energy / carbon reduction *Every 1 % of energy reduction is equivalent to 11 ,000 tons of CO2 �ejeoltins 20 10 Conservation : Advanced Metering Infrastructure Use information from Smart Meter to control About half of water & electric usage consumers indicate a strong inclination to change behavior based on time-of- use rates or having access to more water and electric usage information Shift appliance usage via an in-home based on Time of Use Rates I display or website. 0% 20% 40% 60% 80% 100% ❑ Very likely ❑ Somewhat likely Clty♦of Base: Residential n=400 Fort Collins Is 21 21 Enhanced Demand Response and Customer Engagement Product Innovation Answedrtg the needs of the utility PowerPortal Home IHD Features • Simple to use & low cost • 12864 pixel graphic LCD Real-time IHD using ZigBee wireless (SEP) �p communication with meter • 3 color LEDs used for alerts or price tier 45 • 128 character text messaging or alerts from utility • Ni-MH rechargeable battery operation • Signal strength and battery indicators • Magnetic back and support foot f il firmware upgrade City t Cloev ollins 22 II Thermostat — Heating Rule if gaga. Wq•n dlo at WcVINy 1• •.wti Is or •pen 17 _ N1M ul OR y Yt lONl le do M•nyio of ormwyu o•W. It L 4NM, got my it Ponlm 1" TENOR I L City of Fort Collins 23 Thermostat — Cooling Rule "oos"'o .r.r.. Lv.j .nagged Mnwpu •L4gr4Nyn o.u•I to •r �OOw Id LVJ N7gg ool TlgolIM1Y LM .drw wr. ar•rq.vnya wag g � prA ut qy wt Ponta I � . � 1 TENDRIL City of Fort Collins 24 12 Thermostat — Manual Control Irk OJJJ Iw 4✓ mFII 040` If or G wMw alOw : nor •M�' IMI Fort Collins MM wY w w IYMwA�w )fww. t.Ir� rlYlM rwryr ~� 25 Timeline - Council / DOE 2010 L12011 2012 Q3 Q4 Q1 I Q2 1 3 1 Q4 I Q1 I Q2 I Q3 I Q4 I Q1 ................ .....................1................. ....'•..... ........................................................................................................... DoE Contract 1 IGA ............ .... ... ........... .... ... ... .... .......... .... ... . ................................................:........................................................................... ................... �� Appropiation Ordinance: .....................................:................. . . . . ............................................... .................... Project Execution Plan .....................................:.....................:... ..... ..;......................................mean.................................:.................... Cyber Security Plan .....................................:................. ....:... .......... ... .................................:......................................................................a....:.................... Customer Response Plan .................__ .......................................... ................... Metrics, Benefits and Risk Plan .....................................:................. .... ... .............. ...:................................:.............................................................. Rate Discussion Fort of 26 13 Timeline - Request for Proposals 2010 12011 12012 Q1 Q2 Q3 Q4 I Q1 I Q2 I Q3 I Q4 I Q1 I Q2 I Q3 Q4 . .. .. . . . ... . . . . .. . . . . ... . . . . . _ . . . . .. . . . . . . .. . . . . . .. . . . . . .. . . . . . . . . . . . . . .. . . . . . . .. . . . . . . . . . .. . . . . . . .. . . . . . .. . . . . .... Project Management/Technical Consultant . .. .. . . . ... . . . .. . . . . . .. . . . . . .. . . . . . . .. . . . . . .. . . . .. . . . . . .. . . . . . .. . . . . . . .. . . . . . .. . . . . . . .. . . . . : .. . . . . . .. . . . . . . .. . . . . . .. . . . . . . .. . . . . . .. . . . . . . .. .: 0 AMI/MDMS . .. .. . . . ... ; . . . .. . . . . . .. . . . . . .. . . . . . . . . . . . . . . .. . . . . . .. . . . . . .. . . . . . . .. . . . . . .. . . . . . . .. . . . . ; .. . . . . . .. . . . . . . .. . . . . . .. . . . . . . .. . . . . . .. . . . ..... .: p Cyber Security . .. .. . . . ...:. . .-. . . . . . .. . . . . . .. . . . . . . .. . . . . . .. . .. . . . . . .. . . . . . . .. . . . . . .. . . .. . . .. . . . . : .. . . . . . .. . . . . . . .. . . .. . .. . . . . . . .. . . . . . .. . . . . .. .. ; 0 DRMS . ..... . . ... . . . .. . . . . . .. . . . . . .. . . . . . . .. . . . . . .. .. . . .... . .... .... . . . .. . . . . . . .. . . . . . .. . . .. . . .... . . : .. . . . . . .. . . . . . ... . . . . . ... . . . . . .. . . . . . .. . . . ...... ...... . . ...:. . . . .. . . . . . .. . . . . . .. . . . . . . .. . . . . . .. .: . . . ... . . . . . .. . . . . . .. . . . . . . .. . . . . . .. . . . . . . ... . . . : .. . . . . . .. . . . . . . .. . . . . . .. . . . . . . .. . . . . . .. . . . . .. .. Cityof Fort Collins 27 Timeline - Major Project components 2010 2011 2012 2013 1 2 3 Q4 01 2 Q3 Q4 Q1 02 03 Q4 Q1 1 02 1 03 ............................................................... ..............................; LL�AMI deployment preparation and integration tests .... ...... ................................................ A : MI meter deployment .... ....... ................................................................................ .... .. . .. . ... .. . ... ................................ .. .................... Customer Education' .. ....... . . . . ............ DRMS ......... .......... MDMS _ . . . Cyber Security Fiber optics installation L Distributed Automation City of Fort Collins 28 14 Thank you . 4 t � Fit Collins _r- 29 15 u ORDINANCE NO. 043, 2010 OF THE COUNCIL OF THE CITY OF FORT COLLINS APPROPRIATING UNANTICIPATED REVENUE AND ELECTRIC REVENUE BOND PROCEEDS FOR THE SMART GRID INVESTMENT GRANT PROJECT IN THE LIGHT AND POWER FUND AND FOR BOND ISSUANCE COSTS WHEREAS, the City has been awarded a Smart Grid Investment Grant in the amount of $18,101,264 (the "Grant") from the Department of Energy(DOE); and WHEREAS, the Grant requires matching funds of$15,741,501; and WHEREAS,the Electric Utility Enterprise Board(the"Board")has approved on first reading Ordinance No. 001 of the Board authorizing the issuance of $16,000,000 in Electric Utility Enterprise Revenue Bonds; and WHEREAS, the proceeds of such bond issuance will be used for the required Grant match and for bond issuance costs in the approximate amount of$258,499; and WHEREAS,the Grant provides the City with an opportunity to install an Advanced Metering Infrastructure(AMI)system and accelerate the implementation of the City's long range information technology (IT) needs, and to begin the modernization of its electrical distribution system; and WHEREAS, the Cities of Loveland, Longmont and Fountain are also participating in this project; and WHEREAS, Article V, Section 9, of the City Charter permits the City Council to make supplemental appropriations by ordinance at any time during the fiscal year,provided that the total amount of such supplemental appropriations,in combination with all previous appropriations for that fiscal year, does not exceed the current estimate of actual and anticipated revenues to be received during the fiscal year; and WHEREAS, City staff has determined that the appropriation of the Grant revenue and the bond proceeds will not cause the total amount appropriated in the Light and Power Fund to exceed the current estimate of actual and anticipated revenues to be received in that fund during any fiscal year. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows: Section 1. That there is hereby appropriated from unanticipated grant revenue in the Light and Power Fund the sum of EIGHTEEN MILLION ONE HUNDRED ONE THOUSAND TWO HUNDRED SIXTY FOUR DOLLARS($18,101,264)for expenditure in the Light and Power Fund for the Advanced Metering Infrastructure (AMI) and smart grid technology project. Section 2. That there is hereby appropriated from electric revenue bond proceeds in the Light and Power Fund the sum of FIFTEEN MILLION SEVEN HUNDRED FORTY ONE THOUSAND FIVE HUNDRED ONE DOLLARS ($15,741,501) for expenditure in the Light and Power Fund for the Advanced Metering Infrastructure (AMI) and smart grid technology project. Section 3. That there is hereby appropriated from electric revenue bond proceeds in the Light and Power Fund the sum of TWO HUNDRED FIFTY EIGHT THOUSAND FOUR HUNDRED NINETY NINE DOLLARS ($258,499) for expenditure in the Light and Power Fund for bond issuance costs. Introduced, considered favorably on first reading, and ordered published this 20th day of April, A.D. 2010, and to be presented for final passage on the 4th day of May, A.D. 2010. Mayor ATTEST: City Clerk Passed and adopted on final reading on the 4th day of May, A.D. 2010. Mayor ATTEST: City Clerk