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HomeMy WebLinkAboutMemo - Read Before Packet - 11/1/2016 - Memorandum From Lisa Rosintoski And Tim Mccollough Re: Energy Board Recommendation To Fund Program Coordinator Supervisor Position - Agenda Item #12Utilities electric · stormwater · wastewater · water 700 Wood Street PO Box 580 Fort Collins, CO 80522 970.221.6700 970.221.6619 – fax 970.224.6003 – TDD utilities@fcgov.com fcgov.com/utilities M E M O R A N D U M DATE: October 26, 2016 TO: Mayor Troxell and Councilmembers FROM: Lisa Rosintoski, Customer Connections Manager Tim McCollough, Light and Power Operations Manager THROUGH: Darin Atteberry, City Manager Kevin R. Gertig, Utilities Executive Director RE: Energy Board Recommendation to Fund Program Coordinator Supervisor Position This memo is in response to Mayor Pro Tem Horak’s Leadership Planning Team meeting request to provide a response to the October 13 Energy Board memo supporting the unfunded offer 7.19 - Program Coordinator Supervisor, and recommends defunding Offer 5.26 - Distributed Battery Pilot to pay for the supervisor position. Bottom Line: Utilities staff reviewed Energy Board’s recommendation and agrees funding the Program Coordinator Supervisor position does achieve a timely, direct alignment in managing the current and proposed programs which support the goals related to the Energy Policy, Water Efficiency Plan, and Road to 2020, versus the Distributed Battery Pilot Program, which can be managed towards the 2030 goal as technology evolves. Staff also recognized Offer 5.26 did not incorporate funding for an internal resource to support the battery pilot. However, funding the Program Coordinator Supervisor position will require funds being allocated from Light and Power, Water, Wastewater and Stormwater, which can be accomplished through the use of Available Reserves from each of the three wet utilities, and redirecting the funds from Offer 5.26 - Battery Pilot Program in Light and Power. Summary: The anticipated impact to each utility service fund is as follows: 2017 Salary 2018 Salary Allocation L&P $ 35,367.20 $ 39,669.96 44% Water $ 31,348.20 $ 35,162.01 39% Wastewater $ 5,626.60 $ 6,311.13 7% Stormwater $ 8,038.00 $ 9,015.90 10% Total $ 80,380.00 $ 90,159.00 100% DocuSign Envelope ID: E2C4F492-1154-4F49-B253-19AD283346BC 10/27/2016 10/27/2016 10/30/2016 11/1/2016 Below are the overviews of each offer. Program Coordinator Supervisor (Offer 7.19): Position expands the promotion and administration of both energy and water efficiency/conservation programs and projects to achieve the goal reductions by 2020 for energy and 2030 for water by increasing participation in the existing 17 programs, and future programs by 25%. The position will enable program execution and metric tracking to manage the enhancement or exit strategies for existing programs, as well as the verified business case analysis for maintaining a prioritized innovation pipeline of programs and projects with the Program Management Office (PMO). A classified 1.0 FTE Program Coordinator Supervisor will: i) execute and manage program monitoring with metrics of program plans with project managers; ii) develop and manage with the project manager the program and portfolio monitoring to determine the criteria for enhancing or exiting a program; iii) align with the community and City on the participation in events that promotes awareness and participation in programs, with a goal of 25% increase by 2020; and iv) create and execute with PMO the innovation pipeline that contains a robust amount of programs and projects that can be prioritized for execution to manage goal alignment with the Climate Action Plan, Energy Policy and Water Efficiency Plan based on the customer’s price point. Distributed Battery Pilot Program (Offer 5.26): Offer provides funding for a feasibility and pilot study that will examine how to incorporate distributed storage (batteries) into the electric distribution grid. The goal of the study is to: 1. Determine what utility scale storage technology is available 2. Work through the engineering details of incorporating the storage on the grid 3. Install a pilot battery on the grid 4. Analyze the costs and benefits realized from the pilot This study is needed because the energy plan and the Climate Action Plan (CAP) call for dramatically increasing the amount of distributed renewable on the electric grid. Batteries will need to be incorporated into the grid in order to manage these levels of distributed generation, i.e. match when renewable energy is supplied to when energy is demanded by customers. The data from this analysis will also be used to update the capital expenditure model which shows how customer demand can be met at the lowest capital costs. Thus this study will allow for the integration of CAP modeling with long range capital planning. DocuSign Envelope ID: E2C4F492-1154-4F49-B253-19AD283346BC