Colorado Springs Utilities

Case Study Exercise One Part One

SWOT Analysis of adopting a new form of governance for Colorado Springs Utilities:
Strengths (internal):
• Politically insulates elected officials from unpopular, but necessary utility decisions
• Reduces risk and legal liability to elected officials
• Allows for greater subject matter expertise and focused attention on public utility issues by members of new utility board
• Frees council members to focus their attention on other constituency issues
• Allows for improved continuity of operations and projects, varying with length of tenure
• A separate board would be able to focus on long term goals versus short term politically motivated goals
• A separate board would have more time available to address the
In establishing a separate utility board, many of these functions would be transferred to the new board. In an appointed utility board, members would be appointed to staggered terms on the board, providing continuity from year to year. Recent polling suggests this is the least favorable option for selecting board members. There are significant concerns regarding the loss of public influence. A favorable aspect of this method is the ability to appoint subject matter experts with industry experience. In elected utility board, members would stand for election with staggered terms allowing for continuity from year to year, much as occurs on the present City Council. Draw backs to this method include difficulties identifying qualified candidates with a political mandate and political repercussions for making necessary, but unpopular decisions. One positive is the current favorability of this option among Colorado Springs residents . Hybrid utility
This option provides the greatest consistency, continuity, and professional expertise and limits the transient and short term whims of the populace. It still provides a degree of control to the City Council, which has performed remarkably well up to this point. Care must be taken in properly empowering the new utility board to avoid simply adding another layer of management and needlessly slowing the decision making process. Also, every effort must be made to preserve the city’s ability to independently manage its utility rates. The net result of this form of governance should be improved bond ratings, federal compliance, and long term capital improvements while maintaining affordable public utility