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HomeMy WebLinkAboutPACKET Town Board Study Session 2023-07-11 July 11, 2023 5:00 p.m. – 6:45 p.m. Board Room 4:45 p.m. Dinner No public comment will be heard This study session will be streamed live and available on the Town YouTube page at www.estes.org/videos 5:00 p.m. Solar Policy Overview. (AMI Coordinator Clark) 5:30 p.m. Proposition 123 Introduction – Affordable Housing. (Deputy Town Administrator Damweber, Director Garner & Housing Authority Director Moulton) 6:15 p.m. Town Board Representative on the Housing Authority Board. (Town Administrator Machalek) 6:35 p.m. Trustee & Administrator Comments & Questions. 6:40 p.m. Future Study Session Agenda Items. (Board Discussion) 6:45 p.m. Adjourn for Town Board Meeting. Informal discussion among Trustees concerning agenda items or other Town matters may occur before this meeting at approximately 4:45 p.m. AGENDA TOWN BOARD STUDY SESSION       POWER & COMMUNICATIONS Report To: Honorable Mayor Koenig Board of Trustees Through: Town Administrator Machalek From: Sarah Clark, AMI Coordinator Joe Lockhart, Line Superintendent Reuben Bergsten, Utilities Department Director Date: July 3, 2023 RE: Solar Policy Overview Purpose of Study Session Item: Provide the Town Board (TB) with an overview of the Town’s Solar Policy and operational procedures (i.e., Customer Generation Interconnection and Net Metering Policy). This includes reviewing the current official information available to the public, the interconnection process, net metering, and the results and impacts of customer generation. Town Board Direction Requested: No direction needed Present Situation: Customers can interconnect privately owned, behind-the-meter solar and wind generation and be credited for their excess generation. Typically, the customer’s contractor submits an interconnection application for review and approval before system installation. The review process ensures we have system capacity and the necessary information for tracking and reporting on customer generation. Customers who generate more energy from their system than they use from the distribution grid on a monthly basis are credited for that energy on their utility bills. Town staff utilizes smart grid data and analytics to assess proposed customer generation systems and monitor the impacts on distribution system infrastructure. Advantages: In line with state law Disadvantages: N/A Finance/Resource Impact: There are some financial impacts from retail net metering resulting from crediting customers at a higher rate than our wholesale electric costs. Some staff time is required to review applications for new systems, while significant staff time is required for processing monthly utility bills for net-metered customers. Level of Public Interest Public interest in this topic is moderate, with more interest from groups concerned with sustainability and climate change. Attachments: 1. Solar Policy Overview presentation 2. Customer solar installation quick facts 3. Net meter customer bill read tutorial Solar Policy Overview Town Board Study Session – July 11, 2023 What this presentation isn’t -the elephant in the room Future/non-carbon energy transition planning Policy development System engineering or analysis 1 2 ATTACHMENT 1 Current Framework - Policy Customers are welcome to install and interconnect private generation and storage (solar/wind/batteries) i.e. we offer net- metering but do not subsidize their purchase Retail net-metered (1:1 kWh credit) for excess generation calculated monthly (this follows the State’s PUC regulation, paragraph 3664. Net Metering) Current Framework - Information Town’s info sources Solar Installation Quick Facts Sheet Solar Power page on the Town website Direct contact with staff – phone, email, in-person Outside info Door-to-door/cold call sales Installers Web advertising/social media 3 4 Current Framework – System Install Process: Interconnection application, review, and approval Building and electrical permits System installation and electrical inspection Post-installation P&C staff site inspection Utility account update Interconnection agreement finalized and customer given permission to operate (turn their system on) Results/Impacts – Distribution Grid System impact: No (adverse) impact has been observed at either the transformer or feeder scale Monitoring with Tantalus Transformer Analytics We have 214 customer locations with systems installed; nameplate capacity 1,702 kW (estimated) 5 6 Results/Impacts – Personnel Staff impact: Interconnection application review is manual Automated integrations would be difficult since our electric service area spans four separate building and electrical permitting authorities (Town of Estes Park, CO State; Larimer and Boulder Counties) Net-meter monthly billing is hands-on and time intensive Dictated by system infrastructure, Town policy and the current billing system’s constraints  Thank you! Additional questions? 7 8 Solar Installation Quick Facts For Estes Park Power & Communications (EPPC) Customers Commercial and Residential Solar Photovoltaic systems A Solar Photovoltaic (PV) electric system can provide clean energy with no fuel costs. These systems convert sunlight directly into electricity, saving money and energy. They are easy to maintain and produce no noise or pollution. With solar energy, a property owner can reduce electric utility bills, increase the property's value, and reduce the carbon footprint to help protect the environment. Evaluate and upgrade energy efficiency Before considering a Solar PV electric system, it is crucial to evaluate a building’s energy efficiency. Maximizing energy efficiency first ensures that the electricity produced by the Solar PV system is not lost through leaky ductwork, inadequate insulation, or an inefficient heating and cooling system. For assistance with energy-efficiency upgrades, visit efficiencyworks.org. Determine system size PV systems interconnected to the Estes Park electric system are limited in size to 10 kW (DC) for residential installations and 25 kW (DC) for commercial installation – or a system capable of producing up to 120% of the last 12 month’s consumption – whichever is larger. For more information and assistance, contact the EPPC AMI Coordinator at solarpower@estes.org or 970-577- 3627. Understand billing and credits Net metering is the process of accounting for the flow of electricity between a customer’s solar PV system and the electric grid. The monthly electric bill for a customer with a Solar PV or battery system consists of the following: 1. (Always) A base Customer Charge that offsets EPPC’s overhead cost of ensuring electric service is available at all times, even if there is no consumption from the grid. This charge offset’s the utility’s costs, including customer service, billing, and meter reading. 2. (Sometimes) If more solar electricity is produced than used by the building, the excess is sent to the electric grid, and the customer will receive a credit. 3. (Sometimes) If less solar electricity was produced than used by the building, the customer would be charged for the electricity supplemented by the grid. View electric rates at estes.org/electrictrates. ATTACHMENT 2 Solar Installation Quick Facts For Estes Park Power & Communications (EPPC) Customers Commercial and Residential Steps in the process of installing solar 1. The customer submits an Interconnection Agreement application to EPPC to assess the proposed system's impact. Solar installation contractors can help customers complete the application. Solar installers must be licensed in the building’s jurisdiction. 2. The customer must receive building and electrical permits for the Solar PV system. Within Estes Park town limits: estes.org/building In unincorporated Larimer County: larimer.gov/building In Boulder County: bouldercounty.org/property-and- land/land-use/building 3. Once approved by EPPC and having acquired permits, the customer can proceed with the installation of the system. 4. The customer must have the installed system approved by the appropriate electrical inspector. 5. EPPC will inspect the system and work with the customer to finalize the net metering agreement. 6. EPPC will grant the customer permission to operate the new system. Funding options for customers 1. The Colorado Energy Office offers a residential loan program. The RENU program makes home energy upgrades easy and affordable by offering low-cost, long-term financing for energy efficiency and renewable energy improvements. Learn more at cocleanenergyfund.com/renu. 2. The Colorado Commercial Property Assessed Clean Energy (C-PACE) Program enables owners of eligible commercial and industrial buildings to finance up to 100% of energy efficiency, renewable energy, and water conservation improvements. Learn more at copace.com/. 3. Colorado Department of Local Affairs grants funding for energy efficiency upgrades to downtown businesses through the Main Street: Open for Business program. Learn more at cdola.colorado.gov/open-for- business. 4. Search for incentives for renewables and efficiency at dsireusa.org. How to read your net metered electric bill Meters On your utility bill,you will see two meters listed for your electric service,the physical electric meter that tracks the electricity delivered to you and received from your system and a BANK meter which tracks accrued excess electricity generated by your system.Both are measured in kilowatt hours or kWh. Reads current and previous The electric meter readings Current Reading and Previous Reading shown on the bill are the net reading,the difference between the power delivered to you and the power the utility received from your system. Usage The usage is the difference between net reading on the current billing read date and the previous billing read date.The usage shown may be positive,meaning that we delivered more power to you than we received,or negative,meaning that we received more power than we delivered. Excess generation BANK meter The BANK meter is how we track excess energy production from one billing cycle to another through the year.This means that,just as your electric usage is metered and billed on a monthly basis,the electricity we receive from your solar system is also metered and credited on a monthly basis.If the system cumulatively produces more power than the house uses over the billing period,the excess will show up on the utility bill in kWh on that month's bill.Conversely,if you use more power over the course of a billing period than your solar system produced,there will be no credit to show on your utility bill. The amount of electricity that you receive credit for will likely not match the stated production of your system’s monitoring device.Electricity is only sent back to the grid when your system is generating more electricity than what your home or business is using at the time.If your home or business is using all of the electricity your system is generating,there is nothing to send back to the grid. Unfortunately,our billing system does not have a way to show all of the received power,only what is in excess of delivered power on a monthly basis. ATTACHMENT 3 How to read your net metered electric bill The BANK meter will continue to accrue kWh for as long as the system continues to produce more power than is delivered.Once you begin to use more power than your system produces,your BANK will begin to be charged for that usage at a one to one kWh rate.Once the BANK is drawn back down to 0, you will be charged for usage at your regular kWh rate. Bill calculations Your electric utility bill is comprised of a number of different charges.Each charge is based on your electric rate and service location. Customer charge The is the base fee charged to all electric customers,regardless of usage,and is determined by your electric rate.The customer charge is intended to ensure that all customers are equitably contributing to the operations and maintenance costs of the electric utility,regardless of electric usage. Usage This is the calculated retail cost per kWh;it is determined by your electric rate. Wholesale Power Cost This is the calculated wholesale cost per kWh;it is determined annually by Platte River Power Authority and is set across all of the electric rates. Where applicable,there are also city and state taxes and water utility charges. Only electric usage is off set by the accrued kWh tracked by the BANK meter.The customer charge,and applicable city and state taxes,and water charges will still be charged on your monthly utility bill. How to read your net metered electric bill Smart net meters Where possible,we’ve installed smart meters for net metered customers.The smart meter itself tracks delivered and received power,but at this time we do not have a way to share that data with customers. Here are some examples of monthly net smart meter reads from services with solar systems.The blue bars show delivered power,the green bars show received power,and the gray center bar shows the daily net. Smaller systems winter: Smaller systems summer: Larger systems winter: Large systems summer: EPHA and ToEP Staff July 11, 2023 Proposition 123 Overview Overview State Affordable Housing Fund $151.8M FY22-23 $311M FY23-24 Affordable Housing Support Fund DOH ($124.4M/40%) Affordable Housing Support Fund OEDIT/CHFA ($186.6M/60%) ●At the general election in 2022, voters approved proposition 123, which created new affordable housing programs funded with income tax revenue that the state is permitted to retain and spend as a voter-approved revenue change. ●Opt in is REQUIRED before funds may be applied for. Decision Points & Deadlines ●Local jurisdictions must establish an affordable housing baseline ○Cumulative over 3-year period, meaning 9% total for 3-year period ○Qualify at time of permitting ●Commit to increase baseline of affordable housing by 3% each year ○Cumulative 9% by December 31, 2026 ●Local jurisdictions must establish a Fast Track Development Approval process ○90-day review period for affordable housing projects. ○NOT REQUIRED until 11/1/2026 funding period ○Capacity building funds available. Decision Points & Deadlines continued ●Deadlines for municipalities and counties: ○Initial commitment 11/1/2023 ■Subsequent 3-year cycle also by November 1st ■Window open 5/1/2023 ■Funds available 7/1/2023 ●Required first to develop baseline of affordable housing: ○American Community Survey (ASC) ○Comprehensive Housing Affordability Strategy (CHAS) ○DOH method -last resort Affordable Housing Baseline ●Required first to develop baseline of affordable housing: ○American Community Survey (ASC) ○Comprehensive Housing Affordability Strategy (CHAS) ○DOH method -last resort ●TOEP and EPHA have requested technical assistance. Establish Baseline AMI Decision / Petition Submit Commitment Additional AMI information if Required ●Baseline Options ○ACS ■Baseline = 514 ■3-year commitment estimate = 47 ■Annulalized commitment estimate = 16 ○Neighboring Jurisdiction ■Baseline = 535 ■3-year commitment estimate = 49 ■Annulalized commitment estimate = 17 ●Strong local tool to ease burden of developing attainable housing options. ●Feasible for Community Development as part of the code rewrite ●Not a large change from current standard approval timelines of 3-4 months. Fast Track Process Development ●Discussion and Questions: ○Does the Town Board desire to opt into participation in Prop 123? ○Questions? ○Concerns? Discussion, Questions, and Direction TOWN ADMINISTRATOR’S OFFICE Report To: Honorable Mayor Koenig Board of Trustees From: Town Administrator Machalek Date: July 11, 2023 RE: Town Board Representative on the Housing Authority Board Purpose of Study Session Item: Consider options for Town Board representation on the Estes Park Housing Authority (EPHA) Board of Commissioners. Town Board Direction Requested: Staff requests Town Board direction on which representation option(s) the Board would like to consider for action. Present Situation: Under state statute, the Board of Trustees sets the membership and terms of the EPHA Board of Commissioners. The Town Board approved the expansion of the EPHA Board of Commissioners to seven (7) members in 2022. Since that time, the Town Board has indicated a desire to evaluate options for Town Board representation on the Housing Authority Board of Commissioners. EPHA is currently working to fill one vacancy on its Board of Commissioners. Proposal There are at least three representation options that the Town Board may consider: •Appoint a member of the Town Board as a Liaison to the EPHA Board of Commissioners. The duties of a Board Liaison are detailed in Policy Governance Policy 1.7 (attached). An example of this type of representation is the Town Board’s Liaison appointment to the Sister Cities organization. •Appoint a member of the Town Board as an EPHA Commissioner. Examples of this type of representation include the Town Board’s appointments to the Board of Visit Estes Park, the Estes Park Economic Development Corporation, and the Colorado Association of Ski Towns (CAST). •No change. Cooperative efforts with EPHA would continue through current and future intergovernmental agreements, with regular reporting and communication. Finance/Resource Impact: N/A Level of Public Interest Low Attachments • Policy Governance Policy 1.7 20 POLICY TYPE: GOVERNANCE PROCESS POLICY 1.7 POLICY TITLE: BOARD LIAISON ROLES REV 4/15/ 15 Trustees may serve as the official liaison of the Board to Town committees. The Board of Trustees may appoint an individual Trustee to serve as the official liaison to other community groups. 1.7.1 Appointment - The Mayor may nominate trustees to serve as a Board Liaison. The Mayor shall present the nomination of any such appointments to the Board for approval at a regular town board meeting. The Mayor will make every effort to distribute special assignments equitably among the members of the Board. 1.7.2 Term – A Trustee shall serve as the Town Board Liaison solely at the pleasure of the Town Board, with no specific term limit. 1.7.3 Duties of a Liaison 1.7.3.1 Communicate with the committee when Board of Trustees communication is needed and to serve as the primary two-way communication channel between the Town Board and the committee or community group. 1.7.3.2 Review applications, interview candidates and make recommendations to the Town Board for final approval. 1.7.3.3 Serve as the primary Trustees’ contact for the committee or community group. 1.7.3.4 Attend assigned committee or community group meetings when requested or whenever appropriate, in the opinion of the Trustee liaison. Trustee liaisons are not expected to attend every meeting of the committee or group. 1.7.3.5 The liaison is not a member of the committee and when in attendance at a meeting is there as an observer for the Board of Trustees and a resource for the committee. Participation in board discussions should be minimal and restricted to clarification of Town Board positions or collection of information to bring back to the full Town Board. ATTACHMENT 1 July 25, 2023 •Development Potential on Town-Owned Properties (Dry Gulch and Stanley Avenue) August 8, 2023 •Efficiency Works Programs Overview •FEMA Flood Map Update August 22, 2023 •Planning Fee Schedule September 12, 2023 •Distributed Energy Resources Strategy Overview November 14, 2023 •Distributed Energy Resources Integration Planning Items Approved – Unscheduled: •Bed & Breakfast Code Update •Governing Policies Updates •Stanley Park Master Plan Implementation •Downtown Loop Updates as Necessary •Southwest Energy Efficiency Project (SWEEP) Items for Town Board Consideration: •Visit Estes Park Operating Plan Future Town Board Study Session Agenda Items July 11, 2023