Colorado Springs Utilities' Role in Economic Development

Transcription

1 Colorado Springs Utilities' Role in Economic Development Utilities Policy Advisory Committee Economic Development Assignment Phase 2 Recommendations February 10, 2016

2 Agenda Assignment Scope Benefits of Economic Development Current Role, Strategy and Policies Current Economic Development Tools Information Received and Stakeholder Input Economic Development Guiding Principles Phase 2 Recommendations Implementation Status

3 UPAC Members Tom Taylor, Chair Joe Mark, Vice Chair Balu Bhayani Scott Harvey Rich Kramer Jerry Novak Greg Sears Rex Adams, First Alternate James Colvin, Second Alternate

4 Assignment Scope Determine the appropriate role of Colorado Springs Utilities in economic development and growth in the community. Determine if there are opportunities to positively impact economic development and growth, and determine the proper cost sharing between the requester for new service and the rate base.

5 Benefits of Economic Development To Utilities and Utility Customers Better utilize existing infrastructure Improve Utilities financial metrics Provide additional revenue to fund system improvements Reduce the need for utility rate increases To the Overall Community Broaden the community s tax base Spur local capital investment and reinvestment Maintain and create jobs Greater planned surplus sales transfers to the municipal government to help pay for city services

6 Current Strategy for Economic Development Strategy objectives Facilitate economic growth Plan, build and maintain infrastructure and acquire resources Keep rates competitive Represent local goals Focus on the customer experience Provide options to use utility services wisely

7 Current Role in Economic Development Item 6 Primary Driver CSRBA Promote the community; lead efforts to attract & retain quality businesses Municipal Government Coordinate municipal services & incentives; lead retail development; increase tax revenue Economic Engine CSU Provide utility services; ensure competitive rates & sustainable infrastructure Regional Focus City Limits Focus Service Territory Focus Market the community for business; increase jobs Coordinate responses to prospects and local companies Coordinate state incentives Champion diverse industry mix Lead Local Industry Programs Champion pro-business environment at state and national levels Provide and manage City services that reflect community s economic health Respond to service inquires from prospects and existing companies Coordinate City incentives Advance business-friendly environment locally Lead Rapid Response Team Lead retail development strategy Ensure responsible tariffs to support business growth & competitive business climate Actively engage in business location, retention and expansion Provide utility requirements standard & custom Problem-solvers to inquires from prospects, existing customers, City, and RBA Participate on local and regional economic development teams 7

8 Current Related Policies EL-4 Asset Protection:... shall not allow corporate assets, tangible and intangible, to be unprotected, inadequately maintained, or unnecessarily risked EL-13 Infrastructure:... obligation to serve... Must share capital cost to provide service between existing and new customers EL-14 Community Investment:... be responsive to community needs and values by communicating and maintaining a strong community presence... that builds a significant role towards the community s quality of life

9 Current Economic Development Tools Competitive advantage in reliability, rates and customer service Dedicated Economic Development Staff Communication Tools Tariffs and Utilities Rules & Regulations Competitive Rates Competitive Development Charges Special Contracts

10 Current Economic Development Partnerships

11 Information Received and Discussed City Infill Steering Committee Recommendations Peer utilities tools and industry best practices Comparison of development charges to peer utilities Access to Utilities infrastructure GIS data Annexation policies and procedures Development review process Stakeholder input

12 Stakeholder Input Survey Respondents City Infill Steering Committee Pikes Peak Association of Realtors Colorado Springs Regional Business Alliance Colorado Springs Forward City Economic Vitality University of CO at Colorado Springs Downtown Partnership Dunn & Associates, Inc. Colorado Avenue Task Force Pikes Peak Regional Building Dept. Council of Neighbors and Organizations Urban Renewal Authority Hewlett-Packard FedEx USAA Rockwell Consulting Housing and Building Association

13 Stakeholder Input Survey Results Utilities is competitive in rates, reliability and customer service Utilities should invest more to enable infill and redevelopment Utilities development process is inflexible and takes too long High costs and restrictions to acquire GIS data can be obstacles Utilities should be more aggressive in expanding its business Utilities current role is appropriate It is not Utilities role to subsidize development Many non-utility factors are important to economic development

14 Additional Stakeholder Input City Infill Steering Committee City Economic Development Division Regional Business Alliance Commercial real estate expert Tiny house builders Citizens Utilities staff

15 Infill Steering Committee Utilities-related Recommendations A. Increase open access to CSU facilities and capacity information. B. Align CSU capital improvement plans to strategically upgrade systems in high priority infill areas including Downtown. C. Develop and implement utilities standards for mature areas that minimize or optimize requirements to upgrade or replace existing infrastructure which are sensitive to existing conditions and constraints. D. Refine system development charges to support and encourage infill. E. Implement limited option to transfer meter credits for infill-supportive purposes. F. Further revise inactive meter policies, fees and rules to support infill. G. Actively continue to use strategic teams to address priority infill areas and issues. Item 6

16 UPAC Suggested Changes to Infill Steering Committee Recommendations B.Ensuring a neutral or positive impact to all ratepayers, Aalign Colorado Springs Utilities infrastructure plans to CSU capital improvement coordinate utility system upgrades plans to strategically upgrade systems in high priority infill areas including Downtown based on customer requirements. C. Develop and implement utilities standards Review infrastructure requests for mature areas that minimize or optimize requirements consider options to upgrade or replace existing infrastructure which are sensitive to existing conditions and constraints. Variances must be safe, operationally sound and have a neutral or positive impact to all ratepayers.

17 Phase 1 Recommendations (Presented to Utilities Board in May 2015) 1. Increase support of infill and redevelopment activity through tariffs and Utilities Rules and Regulations to ensure cost effective utilization of existing utility infrastructure. 2. Partner with the Regional Business Alliance and other community economic development partners to develop and maintain online tools and information to facilitate prospect and expansion activity. 3. Expand existing organizational efforts to guide prospects and customers through utility issues. 4. Collaborate with the municipal government and economic development organizations to achieve common community goals such as making Colorado Springs more attractive to prospective and existing businesses.

18 Economic Development Guiding Principles Optimize existing utility infrastructure Grow the customer base across all industries Ensure economic development programs have a neutral or positive impact to all ratepayers Partner with local entities to support community priorities Ensure a business friendly culture by: Eliminating policies and standards that no longer provide value Proactively communicating rationale behind policies Offering alternative development solutions within the boundaries of Tariffs, URRs and City Code Providing greater access to existing utilities infrastructure and capacity information

19 Phase 2 Recommendations Allow the limited transfer of unused development charge credit to a same-owner property. Approved by City Council in December 2015 Eliminate inactive and abandoned water and wastewater service line reconnection charges. Approved by City Council in January 2016 Continue the System Improvement Program (50 percent funding for existing electric line undergrounding). Program continues in 2016 Reduce development charges for very small lots and dwellings. Potentially included in a rate case in 2016

20 Phase 2 Recommendations, continued Improve the functionality of the searchable commercial property/utility infrastructure database. Coordinating with the RBA in 2016 Increase reasonable access to existing Utilities GIS infrastructure data, ensuring critical system data remains secure. Implementation in 2016 Establish a Utilities cross-divisional development review and solutions team. Implementation in 2016 Include economic development-related Executive Limitations in the Utilities Board s new Governance Process Implementation in 2016

21 Questions and Discussion