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HomeMy WebLinkAboutInformation Only 20250421AGENDA INFORMATION UPDATE April 22, 2025 5:00 PM, I.Information Update I.A Compliance with House Bill 23-1039 Electric Resource Adequacy I.B Informational Only Memo - Operating Lease Renewal at Aspen Animal Shelter Info Memo - House Bill 23-1039 Compliance_AR.docx Info Only Memo - Animal Shelter Operating Lease Extension.docx Attachment A_Lease Renewal - SACHSON INC.pdf 1 1 1 INFORMATION ONLY MEMORANDUM TO:Mayor and City Council FROM:Andy Rossello, Project Manager THROUGH:Erin Loughlin Molliconi, Interim Utilities Director Tyler Christoff, Deputy City Manager MEMO DATE:April 10, 2025 RE:Compliance with House Bill 23-1039 Electric Resource Adequacy PURPOSE: This memorandum is for informational purposes only. No action is requested of Council. This memo is to inform Council of the City of Aspen Electric Utility compliance with House Bill 2023-1039 regarding electric resource adequacy. SUMMARY: In 2023, Colorado House Bill 23-1039 was passed that requires electric load-serving providers to submit a resource adequacy report to the Colorado Energy Office (CEO) beginning in April 2024. The CEO will later publish a statewide resource adequacy report annually. As part of this process, an electric load-serving provider must also notify its regulatory oversight entity of this report, which is the City Council for Aspen Electric Utility. Municipal Energy Agency of Nebraska (MEAN), the City’s wholesale power provider, provided all applicable information for Aspen to the CEO. The report MEAN provided for its Colorado members is available on their website under the reports section (https://www.nmppenergy.org/about-mean/power-supply-resources).As the state of Colorado and the country increase loads through electrification and as carbon-based generation sources are retired, understanding load and resource adequacy on the electric grid its paramount. NEXT STEPS: No action from Council is required. This house bill does not change Aspen Electric Utility’s commitment to utilizing 100% renewable energy since 2015. Aspen’s current portfolio is a mix of local hydroelectric facilities at Ruedi and Maroon Creek, regional hydroelectric facilities at Ridgway and Western Area Power Administration (WAPA), and participation in MEAN’s Green Energy program (wind, solar, hydroelectric, and landfill gas). MEAN also ensures Aspen is meeting its real-time load requirements. ATTACHMENTS: None. CITY MANAGER NOTES: Please contact the City Manager if there are questions or follow up needed regarding the information provided. 2 INFORMATION ONLY MEMO TO:Aspen City Council FROM:Pete Strecker, Interim City Manager / Finance Director MEMO DATE:April 22, 2025 RE: Operating Lease Extension at Aspen Animal Shelter PURPOSE: This memo is to inform the Council that there has been a request by the current operator, Sachson, Inc., to exercise a first right of refusal to renew its operating lease at the Cheryl and Sam Wyly Animal Shelter for an additional 5-year term. Staff supports this request and will proceed with this renewal. SUMMARY: This lease was originally approved by the Board of County Commissioners and Aspen City Council via City resolution 58-2020 and County ordinance 31-2020. Terms of this agreement include an initial sunset on June 30, 2025; however, pursuant to section 1.4 of the lease terms, the Lessee has options for up to two 5-year renewals. These optional renewals are to be granted provided the Lessee performs and abides by the terms of the lease and then notifies the Lessor of an intent to renew no less than 120 days prior to the termination date of the lease. NEXT STEPS: Staff received the Lessee’s request to renew on April 9, 2025. While Sachson, Inc. did not meet the 120-day timeframe for the notice of renewal, this infraction was solely an oversight; and once discovered, the Lessee immediately reached out to indicate desires to extend. As staff believe the Lessee has performed and abided by the terms within the current lease arrangement, and has discussed and reached common agreement with County staff that the Lessee is in good standing and equally support another 5-year term, staff are comfortable waiving the 120-day minimum notification period and will execute the first extension period authorized within the lease. ATTACHMENTS: Attachment A – Request to Renew from Lessee CITY MANAGER NOTES: Please contact the City Manager if there are any questions. 3 4