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HomeMy WebLinkAbout2021-09-14 - Agendas - ArchiveA. Council Member Sonia Gutierrez Ward 1 Position 1 Council Member Sarah Marsh Ward 1 Position 2 Council Member Mark Kinion Ward 2 Position 1 Council Member Matthew Petty Ward 2 Position 2 Mayor Lioneld Jordan City Attorney Kit Williams City Clerk Treasurer Kara Paxton City of Fayetteville Arkansas City Council Meeting September 14, 2021 Council Member Sloan Scroggin Ward 3 Position 1 Council Member Sarah Bunch Ward 3 Position 2 Council Member Teresa Turk Ward 4 Position 1 Council Member Kyle Smith Ward 4 Position 2 A Special meeting of the Fayetteville City Council was held on September 14, 2021 at 4:30 p.m. in Room 219 of the City Administration Building located at 113 West Mountain Street, Fayetteville, Arkansas. Call to Order Roll Call Pledge of Allegiance Mayor's Announcements, Proclamations and Recognitions: City Council Meeting Presentations, Reports, and Discussion Items: Agenda Additions: None New Business 1. Southwestern Electric Power Company to Increase Rates: A resolution to authorize the City Attorney to file a Motion to Intervene on behalf of the City of Fayetteville in Arkansas Public Service Commission proceeding 21-070-u and oppose the application of Southwestern Electric Power Company to increase its rates. PASSED AND SHALL BE RECORDED AS RESOLUTION NO. 226-21. Announcements: None City Council Agenda Session Presentations City Council Tour: None Adjournment: 4:44 PM 113 West Mountain Fayetteville, AR 72701 (479) 575-8323 www.fayetteville-ar.gov Special City Council Meeting: September 14, 2021 Adjourn: 226-21 Res. 1 .J I Li d JI,. II Subject: i Roll Jones (W1P2) Kinion �p i y�Q ^ L4 +_?:t01 /j/i (W2P1) Petty (W2P2) IZ_ Scroggin (W3P1) Bunch (W3P2) V*I F) I Turk (W4P1) Hertzberg (W4P2) V Gutierrez (W1P1) Mayor Jordan Subject: Motion To: Motion By: Seconded: Jones (W1P2) Kinion (W2P1) Petty (W2P2) Scroggin (W3P1) Bunch (W3P2) Turk (W4P1) Hertzberg (W4P2) Gutierrez (W1P1) Mayor Jordan Special City Council Meeting: September 14, 2021 Subject: SOUTHWESTERN ELECTRIC POWER COMPANY TO INCREASE RATES: 2021-0720 Motion To: Motion By:TIA Seconded: Jones New (W 1 P2) Kinion Business (W2P1) Petty (W2P2) A.1 Scroggin / (W3P1) J Bunch (W3P2) 1..� 93 Turk (W4P1) Hertzberg / (W4P2) ✓ Gutierrez (W1P1) Mayor Jordan 7-0 Subject: Motion To: Motion By: Seconded: Jones (W 1 P2) Kinion (W2P1) Petty (W2P2) Scroggin (W3P1) Bunch (W3P2) Turk (W4P1) Hertzberg (W4P2) Gutierrez (W1P1) Mayor Jordan Special City Council Meeting: September 14, 2021 Subject: Motion To: Motion By: Seconded: Jones (W 1 P2) Kinion (W2P1) Petty (W2P2) Scroggin (W3P1) Bunch (W3P2) Turk (W4P1) Hertzberg (W4P2) Gutierrez (W1P1) Mayor Jordan Subject: Motion To: Motion By: Seconded: Jones (W 1 P2) Kinion (W2P1) Petty (W2P2) Scroggin (W3P1) Bunch (W3P2) Turk (W4P1) Hertzberg (W4P2) Gutierrez (W1P1) Mayor Jordan DEPARTMENTAL CORRESPONDENCE OFFICE OF THE CITY ATTORNEY Kit Williams City Attorney TO: Mayor Jordan Blake Pennington Assistant City Attorney THRU: Kara Paxton, City Clerk ^ Jodi Backer /\II Paralegal Batke FROM: Kit Williams, City Attorney DATE: September 15, 2021. RE: Resolutions and Ordinances prepared by the City Attorney's Office and passed at the Special City Council meeting of September 14, 2021 1. A RESOLUTION TO AUTHORIZE THE CITY ATTORNEY TO FILE A MOTION TO INTERVENE ON BEHALF OF THE CITY OF FAYETTEVILLE IN ARKANSAS PUBLIC SERVICE COMMISSION PROCEEDING 21-070-U AND OPPOSE THE APPLICATION OF SOUTHWEST ELECTRIC POWER COMPANY TO INCREASE ITS RATES BY 17% AND SPEND $26.8 MILLION ON UPGRADES TO THE FLINT CREEK COAL PLANT City of Fayetteville, Arkansas 113 West Mountain Street Fayetteville, AR 72701 (479) 575-8323 City Council Special Meeting Agenda Tuesday, September 14, 2021 4:30 PM City Hall Room 219 City Council Members Council Member Sonia Gutierrez Ward I Council Member D'Andre Jones Ward I Council Member Mark Kinion Ward 2 Council Member Matthew Petty Ward 2 Council Member Sloan Scroggin Ward 3 Council Member Sarah Bunch Ward 3 Council Member Teresa Turk Ward 4 Council Member Holly Hertzberg Ward 4 Mayor Lioneld Jordan City Attorney Kit Williams City Clerk Kara Paxton City Council Special Meeting Special Meeting Agenda September 14, 2021 Call To Order Roll Call Pledge of Allegiance Mayor's Announcements, Proclamations and Recognitions City Council Meeting Presentations, Reports and Discussion Items Proposed Agenda Additions A. New Business A.1 2021-0720 SOUTHWESTERN ELECTRIC POWER COMPANY TO INCREASE RATES: A RESOLUTION TO AUTHORIZE THE CITY ATTORNEY TO FILE A MOTION TO INTERVENE ON BEHALF OF THE CITY OF FAYETTEVILLE IN ARKANSAS PUBLIC SERVICE COMMISSION PROCEEDING 21-070-U AND OPPOSE THE APPLICATION OF SOUTHWESTERN ELECTRIC POWER COMPANY TO INCREASE ITS RATES B. Announcements C. Adjournment NOTICE TO MEMBERS OF THE AUDIENCE City of Fayetteville, Arkansas Page 2 Printed on 911312021 City Council Special Meeting Special Meeting Agenda September 14, 2021 All interested persons may appear and address the City Council on Unfinished Business, New Business, and Public Hearings at City Council meetings. If you wish to address the City Council on an agenda item, please wait for the Mayor or Chair to request public comment. When the Mayor or Chair recognizes you, please start your public comment by giving your name and address. Comments are to be addressed to the Mayor or Chair. The Mayor or Chair will direct your comments to the appropriate elected officials, staff, or others for response. Keep your comments respectful, brief, to the point, and relevant to the agenda item being considered. Each speaker from the public will be allowed one turn to speak for discussion of an agenda item. Below is a portion of the Rules of Order and Procedure of the Fayetteville City Council pertaining to City Council meetings: Agenda Additions: A new item which is requested to be added to the agenda at a City Council meeting should only be considered if it requires immediate City Council consideration and if the normal agenda setting process is not practical. The City Council may only place such new item on the City Council meeting's agenda by suspending the rules by two-thirds vote. Such agenda addition shall be heard prior to the Consent Agenda. Consent Agenda: Consent Agenda items shall be read by the Mayor and voted upon as a group without discussion by the City Council. If a Council Member wishes to comment upon or discuss a Consent Agenda item that item shall be removed and considered immediately after the Consent Agenda has been voted upon. Unfinished Business and New Business: Overview Period: Agenda items at a City Council meeting shall be introduced by the Mayor and, if an ordinance, read by the City Attorney. City staff shall then present a report. An agenda applicant (city contractor, rezoning or development applicant, etc.) may present its proposal only during this presentation period, but may be recalled by a Council Member later to answer questions. City staff, Council Members and applicants may use electronic visual aids in the City Council meeting as part of the presentation of the agenda item. City staff s presentation and an Applicant's presentation whether presented by one or more than one presenter shall each be limited to a maximum of ten (10) minutes unless the City Council by unanimous consent or majority vote allows additional time. Public Comments: Public comment at a City Council meeting shall be allowed for all members of the audience who have signed up prior to the beginning of the agenda item they wish to address being opened for public comment. Speakers shall be limited to a maximum of five (5) minutes to be broken into segments of three and two minutes. Amendments may receive public comments only if approved by the City Council by unanimous consent or majority vote. If public comment is allowed for an amendment, speakers will only be allowed to speak for three (3) minutes. The City Council may allow both a speaker additional time and an unsigned -up person to speak by unanimous consent or majority vote. Courtesy and Respect: All members of the public, all city staff and elected officials shall accord the utmost courtesy and respect to each other at all times. All shall refrain from rude or derogatory remarks, reflections as to integrity, abusive comments and statements about motives or personalities. Any member of the public who violates these standards shall be ruled out of order by the Mayor, must immediately cease speaking and shall City of Fayetteville, Arkansas Page 3 Printed on 911312021 City Council Special Meeting Special Meeting Agenda September 14, 2021 leave the podium. Interpreters or Telecommunications Devise for the Deaf (TDD), for hearing impaired are available for all City Council meetings, a 72-hour advance notice is required. For further information or to request an interpreter, please call 479-575-8330. A copy of the complete City Council agenda is available on our website at www.fayetteville-ar.gov or in the Office of the City Clerk, 113 W. Mountain, Fayetteville, Arkansas (479)575-8323. All cell phones must be silenced and may not be used within the City Council Chambers. City of Fayetteville, Arkansas Page 4 Printed on 911312021 City of Fayetteville, Arkansas 113 West Mountain Street Fayetteville, AR 72701 (479) 575-8323 City Council Special Meeting Agenda Tuesday, September 14, 2021 4:30 PM City Hall Room 219 City Council Members Council Member Sonia Gutierrez Ward I Council Member D'Andre Jones Ward I Council Member Mark Kinion Ward 2 Council Member Matthew Petty Ward 2 Council Member Sloan Scroggin Ward 3 Council Member Sarah Bunch Ward 3 Council Member Teresa Turk Ward 4 Council Member Holly Hertzberg Ward 4 Mayor Lioneld Jordan City Attorney Kit Williams City Clerk Kara Paxton City Council Special Meeting Special Meeting Agenda September 14, 2021 Call To Order Roll Call Pledge of Allegiance Mayor's Announcements, Proclamations and Recognitions City Council Meeting Presentations, Reports and Discussion Items Proposed Agenda Additions A. New Business A.1 2021-0720 SOUTHWESTERN ELECTRIC POWER COMPANY TO INCREASE RATES: A RESOLUTION TO AUTHORIZE THE CITY ATTORNEY TO FILE A MOTION TO INTERVENE ON BEHALF OF THE CITY OF FAYETTEVILLE IN ARKANSAS PUBLIC SERVICE COMMISSION PROCEEDING 21-070-U AND OPPOSE THE APPLICATION OF SOUTHWESTERN ELECTRIC POWER COMPANY TO INCREASE ITS RATES B. Announcements C. Adjournment NOTICE TO MEMBERS OF THE AUDIENCE City of Fayetteville, Arkansas Page 2 Printed on 911312021 City Council Special Meeting Special Meeting Agenda September 14, 2021 All interested persons may appear and address the City Council on Unfinished Business, New Business, and Public Hearings at City Council meetings. If you wish to address the City Council on an agenda item, please wait for the Mayor or Chair to request public comment. When the Mayor or Chair recognizes you, please start your public comment by giving your name and address. Comments are to be addressed to the Mayor or Chair. The Mayor or Chair will direct your comments to the appropriate elected officials, staff, or others for response. Keep your comments respectful, brief, to the point, and relevant to the agenda item being considered. Each speaker from the public will be allowed one turn to speak for discussion of an agenda item. Below is a portion of the Rules of Order and Procedure of the Fayetteville City Council pertaining to City Council meetings: Agenda Additions: A new item which is requested to be added to the agenda at a City Council meeting should only be considered if it requires immediate City Council consideration and if the normal agenda setting process is not practical. The City Council may only place such new item on the City Council meeting's agenda by suspending the rules by two-thirds vote. Such agenda addition shall be heard prior to the Consent Agenda. Consent Agenda: Consent Agenda items shall be read by the Mayor and voted upon as a group without discussion by the City Council. If a Council Member wishes to comment upon or discuss a Consent Agenda item that item shall be removed and considered immediately after the Consent Agenda has been voted upon. Unfinished Business and New Business: Overview Period: Agenda items at a City Council meeting shall be introduced by the Mayor and, if an ordinance, read by the City Attorney. City staff shall then present a report. An agenda applicant (city contractor, rezoning or development applicant, etc.) may present its proposal only during this presentation period, but may be recalled by a Council Member later to answer questions. City staff, Council Members and applicants may use electronic visual aids in the City Council meeting as part of the presentation of the agenda item. City staff s presentation and an Applicant's presentation whether presented by one or more than one presenter shall each be limited to a maximum of ten (10) minutes unless the City Council by unanimous consent or majority vote allows additional time. Public Comments: Public comment at a City Council meeting shall be allowed for all members of the audience who have signed up prior to the beginning of the agenda item they wish to address being opened for public comment. Speakers shall be limited to a maximum of five (5) minutes to be broken into segments of three and two minutes. Amendments may receive public comments only if approved by the City Council by unanimous consent or majority vote. If public comment is allowed for an amendment, speakers will only be allowed to speak for three (3) minutes. The City Council may allow both a speaker additional time and an unsigned -up person to speak by unanimous consent or majority vote. Courtesy and Respect: All members of the public, all city staff and elected officials shall accord the utmost courtesy and respect to each other at all times. All shall refrain from rude or derogatory remarks, reflections as to integrity, abusive comments and statements about motives or personalities. Any member of the public who violates these standards shall be ruled out of order by the Mayor, must immediately cease speaking and shall City of Fayetteville, Arkansas Page 3 Printed on 911312021 City Council Special Meeting Special Meeting Agenda September 14, 2021 leave the podium. Interpreters or Telecommunications Devise for the Deaf (TDD), for hearing impaired are available for all City Council meetings, a 72-hour advance notice is required. For further information or to request an interpreter, please call 479-575-8330. A copy of the complete City Council agenda is available on our website at www.fayetteville-ar.gov or in the Office of the City Clerk, 113 W. Mountain, Fayetteville, Arkansas (479)575-8323. All cell phones must be silenced and may not be used within the City Council Chambers. City of Fayetteville, Arkansas Page 4 Printed on 911312021 City of Fayetteville, Arkansas 113 West Mountain Street Fayetteville, AR 72701 (479)575-8323 Text File File Number: 2021-0720 Agenda Date: 9/14/2021 Version: 1 Status: Agenda Ready In Control: City Council Meetinq File Type: Resolution Agenda Number: A.1 SOUTHWESTERN ELECTRIC POWER COMPANY TO INCREASE RATES: A RESOLUTION TO AUTHORIZE THE CITY ATTORNEY TO FILE A MOTION TO INTERVENE ON BEHALF OF THE CITY OF FAYETTEVILLE IN ARKANSAS PUBLIC SERVICE COMMISSION PROCEEDING 21-070-U AND OPPOSE THE APPLICATION OF SOUTHWESTERN ELECTRIC POWER COMPANY TO INCREASE ITS RATES WHEREAS, on July 23, 2021, Southwestern Electric Power Company ("SWEPCO") filed an Application for General Change in Rates and Tariffs with the Arkansas Public Service Commission; and WHEREAS, SWEPCO's proposed rate change would result in an electricity cost increase to the City of Fayetteville government, residents, businesses, and institutions of more than $10,000,000.00; and WHEREAS, the City of Fayetteville is not adequately represented by any other party to SWEPCO's rate increase proceeding as it is SWEPCO's largest municipal customer in the State of Arkansas and SWEPCO provides approximately 74% of all electricity consumed in the City. NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE, ARKANSAS: Section 1: That the City Council of the City of Fayetteville, Arkansas hereby authorizes the City Attorney to file a motion to intervene on behalf of the City of Fayetteville in Arkansas Public Service Commission proceeding 21-070-U and oppose the application of Southwest Electric Power Company to increase its rates. City of Fayetteville, Arkansas Page 1 Printed on 911312021 Peter Nierengarten Submitted By City of Fayetteville Staff Review Form 2021-0720 Legistar File ID 9/14/2021 City Council Meeting Date - Agenda Item Only N/A for Non -Agenda Item 9/10/2021 SUSTAINABILITY/RESILIENCE (631) Submitted Date Division / Department Action Recommendation: Staff recommends intervening in Arkansas Public Service Commission docket: 21-070-U, in the matter of the application of Southwestern Electric Power Company for approval of a general change in rates and tariffs. Account Number Project Number Budgeted Item? Does item have a cost? Budget Adjustment Attached? Budget Impact: Current Budget Funds Obligated Current Balance Item Cost Budget Adjustment Remaining Budget Fund Project Title V20210527 Purchase Order Number: Previous Ordinance or Resolution # Change Order Number: Approval Date: Original Contract Number: Comments: CITY OF FAYETTEVILLE ARKANSAS MEETING OF SEPTEMBER 14, 2021 TO: Mayor and City Council THRU: Susan Norton, Chief of Staff FROM: Peter Nierengarten, Environmental Director DATE: September 7, 2021 CITY COUNCIL MEMO SUBJECT: Southwestern Electric Power Company (SWEPCO) Rate Case Intervention RECOMMENDATION: Staff recommends intervening in Arkansas Public Service Commission docket: 21-070-U, in the matter of the application of Southwestern Electric Power Company for approval of a general change in rates and tariffs. BACKGROUND: Southwestern Electric Power Co. (SWEPCO) is one of two utilities providing electricity within the City of Fayetteville. In 2020, SWEPCO provide approximately 795 million kWh of electricity to residents, businesses and other institutions in Fayetteville, accounting for 74% of electricity consumed in the City. On July 23, 2021, SWEPCO submitted a request to the Arkansas Public Service Commission to update its prices. The company seeks recovery of ongoing operation and maintenance ("O&M") and capital for its generation units associated with several utility distribution and generation upgrades, including: • New wind power generation facilities in Oklahoma • Upgrades to the Flint Cleek Coal Plant to comply with the U.S. EPA Coal Combustion Residual (CCR) and Effluent Limitations Guidelines (ELG) rules • Transmission & distribution improvements to increase reliability of service to customers If approved, new rates would likely go into effect by the middle of 2022. A Fayetteville residential customer using 1,000 kilowatt-hours per month would see a total bill of $130.20, an overall bill increase of $18.89 per month, or about 17%. Commercial, industrial and public customers would see an 8% rate increase. DISCUSSION: The Arkansas Public Service Commission allows any person or entity whose interest may be directly affected by Commission action to intervene as a party to any docket. A petition to intervene shall contain: • The nature of the petitioner's interest in the proceeding Mailing Address: 113 W. Mountain Street www.fayetteville-ar.gov Fayetteville, AR 72701 • A demonstration that the petitioner's interests are not adequately represented by any other party • The specific objection to the applicant's proposal • Any other reasonable information Other affected entities who have submitted petitions to the Arkansas Public Service Commission to intervene in this rate case include the University of Arkansas System, Walmart Inc. and the Sierra Club. The deadline to submit intervene in this rate case is 4:30 pm on Tuesday, September 21, 2021. BUDGET/STAFF IMPACT: The proposed SWEPCO rate increase would have a direct budgetary impact of approximately $80,000 per year for City of Fayetteville Government electricity costs and over $10M per year in additional electricity cost for the residents, businesses and other institutions in Fayetteville. Attachments: SWEPCO News Release SWEPCO REQUESTS NEW ARKANSAS RATES July 23, 2021 SHREVEPORT, La., July 23, 2021— Southwestern Electric Power Co. (SWEPCO), an American Electric Power (Nasdaq: AEP) company, today submitted a request to the Arkansas Public Service Commission (APSC) to update its prices. The company seeks to recover environmental and resiliency costs associated with providing customers cleaner and more reliable energy. "We have made significant investments in wind -powered generation, specifically with the North Central Energy Facilities (NCEF) project," said Malcolm Smoak, SWEPCO president and chief operating officer. "It's a project that has environmental and economic benefits for SWEPCO's customers, saving an estimated $2 billion over the next 30 years." The APSC unanimously approved the NCEF project in May 2020. With no fuel cost for wind, NCEF lowers SWEPCO's overall fuel cost for power generation. This fuel savings and federal Production Tax Credits more than offset the cost of the new facilities, resulting in net long-term savings to customers. One of three NCEF wind facilities is now in commercial operation. The second and third facilities will begin operations later this year and early 2022, respectively. Arkansas customers get 268 megawatts (MW) of SWEPCO's total purchase of 810 MW. The $85 million request also includes recent investments in transmission and distribution facilities and reflects costs to operate and maintain equipment that delivers power to customers. It also establishes new tariffs for electric vehicles, lighting and other measures. If approved, new rates would likely go into effect in the first billing cycle of June 2022. An Arkansas residential customer using 1,000 kilowatt-hours per month would see a total bill of $130.20, an overall bill increase of $18.89 per month, or about 17%. This total includes SWEPCO's 2021 winter storm costs, which are about $7.72 per month for a residential customer using 1,000 kilowatt-hours per month. Base rates refer to the costs of building, maintaining and operating SWEPCO's electric system, including power plants, transmission and distribution lines and facilities to serve customers. Base rates do not include the fuel portion of the customer's bill, which pays for fuel and purchased power and is a direct pass -through to customers. About Southwestern Electric Power Co. (SWEPCO) SWEPCO, an American Electric Power (Nasdaq: AEP) company, serves more than 543,000 customers in northwest and central Louisiana, northeast Texas and the Texas Panhandle, and western Arkansas. SWEPCO's headquarters are in Shreveport, La. News releases and other information about SWEPCO can be found at SWEPCO.com. Connect with us at Facebook.com/SWEPCO, Twitter.com/SWEPCOnews, Instagram.com/swepco, Youtube.com/SWEPCOty, LinkedIn.com/company/swepco and SWEPCOConnections.com. About American Electric Power (AEP) American Electric Power, based in Columbus, Ohio, is powering a cleaner, brighter energy future for its customers and communities. AEP's approximately 16,800 employees operate and maintain the nation's largest electricity transmission system and more than 223,000 miles of distribution lines to safely deliver reliable and affordable power to 5.5 million regulated customers in 11 states. AEP also is one of the nation's largest electricity producers with approximately 30,000 megawatts of diverse generating capacity, including more than 5,600 megawatts of renewable energy. The company's plans include growing its renewable generation portfolio to approximately 50% of total capacity by 2030. AEP is on track to reach an 80% reduction in carbon dioxide emissions from 2000 levels by 2030 and has committed to achieving net zero by 2050. AEP is recognized consistently for its focus on sustainability, community engagement, and diversity, equity and inclusion. AEP's family of companies includes utilities AEP Ohio, AEP Texas, Appalachian Power (in Virginia and West Virginia), AEP Appalachian Power (in Tennessee), Indiana Michigan Power, Kentucky Power, Public Service Company of Oklahoma, and Southwestern Electric Power Company (in Arkansas, Louisiana, east Texas and the Texas Panhandle). AEP also owns AEP Energy, which provides innovative competitive energy solutions nationwide. For more information, visit aep.com.