HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 11/02/2021 - ITEMS RELATING TO 2022 UTILITY RATES, FEES, AND CH Agenda Item 17
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AGENDA ITEM SUMMARY November 2, 2021
City Council
STAFF
Randy Reuscher, Utility Rate Analyst
Lance Smith, Utilities Strategic Finance Director
Donnie Dustin, Water Resources Manager
Cyril Vidergar, Legal
Eric Potyondy, Legal
SUBJECT
Items Relating to 2022 Utility Rates, Fees, and Charges.
EXECUTIVE SUMMARY
A. First Reading of Ordinance No. 146, 2021, Amending Chapter 26 of the Code of the City of Fort
Collins to Revise Electric Rates, Fees and Charges.
B. First Reading of Ordinance No. 147, 2021, Amending Chapter 26 of the Code of the City of Fort
Collins to Revise Electric Fees Imposed for the Construction of New or Modified Electric Service
Connections.
C. First Reading of Ordinance No. 148, 2021, Amending Chapter 26 of the Code of the City of Fort
Collins to Revise Sewer Plant Investment Fees.
D. First Reading of Ordinance No. 149, 2021, Amending Chapter 26 of the Code of the City of Fort
Collins to Revise the Stormwater Plant Investment Fees.
E. First Reading of Ordinance No. 150, 2021, Amending Chapter 26 of the Code of the City of Fort
Collins to Revise Water Plant Investment Fees.
F. First Reading of Ordinance No. 151, 2021, Amending Chapter 26 of the Code of the City of Fort
Collins to Revise Miscellaneous Water Fees and Charges, Including the Water Supply Requirement
Fee.
The purpose of this item is to consider Ordinances related to proposed 2022 rates and fees being brought
forward for Council consideration, including the following items:
• Item (A) - Includes a 2% increase in monthly charges for Electric customers. [Note that none of the
ordinances make any changes to Water, Wastewater or Stormwater monthly charges.] This Ordinance
also revised definitions in Chapter 26 to clarify how electric rates are stated and applied to shared energy
systems. In addition, a language change is proposed to allow residential all-electric Time-of-Day (TOD)
customers to choose between two TOD rate structures.
• Items (B - E) - Include a 3.4% to 3.9% increases to Plant Investment Fees (PIFs) and Electric Capacity
Fee (ECF)
• Item (F) - Includes a 60% increase to water supply development fee (Water Supply Requirements, cash-in
lieu fee) and the Excess Water Use surcharge rate.
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STAFF RECOMMENDATION
Staff recommends adoption of these Ordinances on First Reading.
BACKGROUND/DISCUSSION
Monthly Utility Rates
The ongoing operation and maintenance costs to provide each of the four services to customers are collected
through monthly utility rates. Long-term financial planning is important to ensure revenues are adequate and
reserves are available to maintain and replace infrastructure in a timely fashion to continue to provide high
quality and reliable services to our customers. These actions help ensure the delivery of current and future
utility services occurs in a fiscally responsible manner, balancing both costs and levels of service with
affordability and prudent planning and investments. Such actions are also consistent with Article XII, Section 6
of the City Charter, which requires that rates, fees or charges for utility services produce revenues sufficient to
pay the costs, expenses, and other obligations of providing those services.
Proposed Changes to Monthly Utility Rates
Staff is proposing a 2% retail rate increase for the Electric (Utility Enterprise) Fund in 2022. This increase is
driven by an anticipated increase in wholesale electric expenses for Fort Collins in 2022. Later in October, the
Platte River Power Authority (Platte River) board is expected to approve a proposed 3.2% increase to the
wholesale rate for 2022, although the impacts to each of the four cities will vary. Fort Collins is expected to see
less of an impact than the other cities at only 2.8%. Wholesale costs are approximately 70% of total Electric
Fund costs, therefore, a 2% retail increase is necessary to cover the increased wholesale expenses. The
lesser impact is driven largely by a more favorable load factor (energy to demand ratio), as compared to
Loveland, Longmont, and Estes Park, due in part to Fort Collins’ demand-side management efforts, including
residential TOD rates. In addition, Utility staff is proposing to adjust retail prices by increasing monthly fixed
charges slightly, which will be offset with lower distribution energy charges, keeping total distribution revenue
the same for each class of customers.
There are no proposed changes to water, wastewater, or stormwater monthly rates.
Under the proposed rate change, the average residential customer’s total utility bill would be expected to
increase 0.9%, or $1.56 per month, in 2022 for a customer receiving all four municipal utility services. The
table below shows the impacts of the proposed rate change for a typical residential customer.
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Proposed Revisions to Chapter 26 Definitions
Fort Collins Utilities (Utilities) billing system is being configured to enable Shared Energy Systems Aggregated
Net Metering services, which allow multi-family residential customers to benefit from distributed energy
systems (solar and/or batteries) supplied by renewable energy installed at the building or parcel where the
customer premises are located. Several corresponding changes to definitions in Chapter 26 are proposed to
align with this net metering billing configuration. The changes include additions and edits to the following
definitions: Community-based project, Customer-generator, Net metering service and Subscriber-owned
facility.
Staff is also proposing to modify City Code to allow all-electric TOD customers (schedule RE) to choose the
TOD rate structure they are billed on. This is an outcome of the staff review and discussions with City Council
and Energy Board in February/March 2021. As part of the 2020 review of TOD rates, staff identified an
unintended consequence of having a segment of these customers on the all-electric TOD rate that allowed
customers to benefit slightly by being on the TOD plus the additional “tier” rate, as these customers rarely
reach the 700-kWh threshold for the tier charge. This change, i.e. allowing all electric customers to choose
between the TOD rate without a tier and the TOD + tier rate, will benefit all-electric customers that are in
smaller dwelling units, which typically have lower consumption than larger single-family homes and would
equate to a roughly $2 per month savings, depending on consumption. These customers would be able to
make a rate change once per 12 month-period, as is currently available under Chapter 26 of the Code for any
customer-requested rate change.
Development Fees
Development fees are the mechanism for Utilities to recover the impact of adding new demand to the services
Utilities provides, including electric, water, wastewater, and stormwater, including fees identified as plant
investment fees (PIFs), electric capacity fees (ECFs), and water supply requirement cash-in-lieu fees. There
are two water-related development fees assessed on development in the Utilities water service area, which
include:
1. The Water Supply Requirement cash-in-lieu fee, which assesses the cost to acquire and develop reliable
water resources for the new water demand; and
2. The water plant investment fee (PIF), which primarily assesses the cost of the treatment and distribution
infrastructure required to process and transport the treated water.
Proposed Changes to Plant Investment Fees
PIFs and Electric Capacity Fees (ECFs) are one-time charges for new development or re-development. These
fees recover costs for infrastructure already in place to serve new customers based on the “buy-in” approach,
where customers pay according to new demands they will put on the system. For example, the water and
wastewater PIF are based on peak day demands as an allocation method, which is the driver for sizing the
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infrastructure necessary to provide the service, while the stormwater PIF is based on developing an acre of
land. The models for each of the services was updated and looks at the replacement value of each system and
average demands by customer type. For water and wastewater, the PIF varies with the number of dwelling
units and the lot area served for residential users, and with the size of the water meter for non-residential
users. For stormwater, the PIF applies when a lot or parcel of land is developed and creates an impervious
surface (the area that does not absorb water such as buildings and parking lots) of more than 350 square feet.
The table below summarizes the proposed increases for each one-time fee by service.
For reference, the impact of these changes for the new construction of a single -family home is summarized in
the table below. Provided the construction is within Utilities service territories for each of the four services, the
changes would amount to an increase of $359, or 3.6% overall.
2021 2022 Difference
Electric Capacity Fee 1,610$ 1,666$ 56$
Water PIF 3,152$ 3,272$ 120$
Wastewater PIF 3,698$ 3,824$ 126$
Stormwater PIF 1,460$ 1,516$ 57$
Total 9,920$ 10,278$ 359$
Single-Family New Construction
Proposed Changes to Water Supply Requirements Fee
Staff is proposing an increase cash-in-lieu fee to meet the Water Supply Requirements (WSR), which
generates revenue used to ensure adequate and reliable water for new water demand from development and
redevelopment within the Utilities water service area. The WSR can also be met with existing City-issued water
certificates and credits. The WSR could historically be met by dedicating water rights (shares in certain ditch
and reservoir companies and the Colorado-Big Thompson Project units) to the City or by making a payment of
cash in lieu of such water rights. The payment was thus generally referred to as the “cash-in-lieu” fee.
However, because cash in now the primary means of meeting the WSR, it is referred to in this agenda item
summary (and in the City Code) as the “WSR fee”.
Significant cost increases have occurred to the actual and estimated future costs related to the Halligan Water
Supply Project and other water rights required for providing reliable water supplies as growth continues. These
external pressures are faced by many other water providers in the region. Unlike most other fees, the
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proposed (cash-in-lieu) fee increase is a function of unprecedented inflation in costs that Utilities has no control
over.
Staff proposes the WSR (cash-in-lieu) fee be increased to $68,200 per acre-foot of WSR to reflect these
changes, which results in about a 60% increase in the cost of water use at the tap. Since the WSR (cash-in-
lieu) fee is tied to the excess water use surcharge rate, the surcharge rate also would increase about 60% to
$16.67 per 1,000 gallons of use over annual allotments.
Staff presented the proposed WSR (cash-in-lieu) fee changes at the Sept. 1, 2021, Council Finance
Committee meeting. The Committee was generally supportive of the proposed changes. The agenda item
summary for that meeting is included as Attachment 1, which provides detailed background on how the WSR
(cash-in-lieu) fee was developed.
Staff includes the following additional information and clarification based on feedback taken during the
outreach process, as well as updated total cost comparison graphs.
Proportional Buy-in to Existing Water Supplies
A significant portion of the WSR (cash-in-lieu) fee calculation is the component that represents the proportional
buy-in to the existing water supplies. During outreach, there were several questions about what this
component represents and why it has been significantly increased. This component recognizes that new
development will be buying into and benefitting from the existing water supply portfolio. This includes valuable
and reliable senior direct flow water rights on the Poudre River, senior changed irrigation water rights on the
Poudre River, Colorado-Big Thompson Project units, and other Horsetooth Reservoir sources. In addition,
Utilities’ plan for generating new water supplies requires two main components: infrastructure and “wet water.”
Building a new or larger “bucket” isn’t valuable without water to store in that bucket. The “wet water” used to
generate additional supply to meet future demands will come from storing water from the existing water supply
portfolio.
Current modeling indicates an estimated 2,645 acre-feet (only a small portion) of the existing water supply
portfolio will be used by new development without impacting existing customers. BBC Research & Consulting
estimated that the Utilities’ water supply portfolio is worth about $3.17 billion, or about $100,100 per acre-foot
of reliable yield. Applying this amount to the currently estimated 2,645 acre-feet of water used from existing
water supply portfolio, the value of use of the existing portfolio by future customers is estimated to be $264.7
million. This is a significant increase from the previous valuation of the buy-in component, which was based on
the historical cash-in-lieu (now WSR) fee that used the least valuable portion of the existing portfolio and
undervalued this component. The increased value of this component recognizes that those water supplies
have appreciated, and that value will benefit existing customers that can be used to defray future water
systems costs (e.g., water supply system maintenance).
Development Impacts
The following graphs have been revised from the attached Council Finance Committee meeting materials
(Attachment 1) to include updated information from other water providers that also are proposing increases to
their WSR (cash-in-lieu) fee for 2022.
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$11,900
$18,400
$14,900
$15,900
$16,900
$29,000
$31,700
$0 $5,000 $10,000 $15,000 $20,000 $25,000 $30,000 $35,000
Ft. Collins Utilities
Current (Jan 2021)
Ft. Collins Utilities
Proposed (Jan 2022)
Westminster
(proposed 2022)
Greeley
(proposed 2022)
Loveland
(proposed 2022)
East Larimer County
(2021/2022)
Ft. Collins Loveland
(2021/2022)
Cost, rounded to nearest $100 ($)
Water Supply Costs for a Typical Single Family
Home in Northern Colorado
$215,700
$291,200
$250,182
$280,600
$435,500
$553,600
$961,000
$0 $250,000 $500,000 $750,000 $1,000,000
Ft. Collins Utilities
Current (Jan 2021)
Ft. Collins Utilities
Proposed (Jan 2022)
Westminster
(proposed 2022)
Greeley
(proposed 2022)
Loveland
(proposed 2022)
East Larimer County
(2021/2022)
Ft. Collins Loveland
(2021/2022)
Cost, rounded to nearest $100 ($)
Water Supply Costs for Multi-Family
Development in Northern Colorado
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$38,300
$6,300
$3,600
$7,100
$39,400
$41,000
$44,000
$0 $25,000 $50,000
Ft. Collins Utilities
Current (Jan 2021)
Ft. Collins Utilities
Proposed (Jan 2022)
Westminster
(proposed 2022)
Greeley
(proposed 2022)
East Larimer County
(2021/2022)
Loveland
(proposed 2022)
Ft. Collins Loveland
(2021/2022)
Cost, rounded to nearest $100 ($)
Water Supply Costs for 4,300 sqft Office or 3/4"
Commercial Taps in Northern Colorado
$38,300
$85,000
$39,400
$41,000
$44,000
$59,184
$62,200
$0 $25,000 $50,000 $75,000 $100,000
Ft. Collins Utilities
Current (Jan 2021)
Ft. Collins Utilities
Proposed (Jan 2022)
East Larimer County
(2021/2022)
Loveland
(proposed 2022)
Ft. Collins Loveland
(2021/2022)
Westminster
(proposed 2022)
Greeley
(proposed 2022)
Cost, rounded to nearest $100 ($)
Water Supply Costs for 2,800 sqft Restaurant or
3/4" Commercial Taps in Northern Colorado
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WSR (Cash-in-Lieu) Fee Summary
The proposed changes to the WSR (cash-in-lieu) fee reflect the unprecedented increasing costs of developing
water supplies, while also addressing the uncertainty in doing so. The changes obtain the goal of generating
adequate revenue to pay for developing reliable supplies for new development into the future, while assuring
development pays its own way and avoids impacts to current customers. Although the cash-in-lieu fee
increase is significant, the WSR methodology changes adopted by Council in October will help by: 1) being
more reflective of actual water use; and 2) by including other changes to enable more opportunities for future
development to minimize costs by lowering the water use of the development.
CITY FINANCIAL IMPACTS
The Electric increase is part of the 2022 City Manager’s Recommended budget and would offset increased
wholesale costs for 2022.
BOARD / COMMISSION RECOMMENDATION
At the September 9, 2021, meeting, the Energy Board unanimously recommended adoption of the proposed
changes to the Utility rates, fees, and charges. (Attachment 2)
At the October 21, 2021, meeting, the Water Commission unanimously recommended adoption of the
proposed changes to the Utility rates, fees, and charges. (Attachment 3)
At the October. 20, 2021, meeting, the Natural Resources Advisory Board generally supported the proposed
changes to the WSR (cash-in-lieu) fee (no action was taken). (Attachment 4) The Board may provide a
memo on this topic in an upcoming Council packet.
PUBLIC OUTREACH
Staff conducted a Lunch-n-Learn event on Oct. 6, 2021, to present the proposed rate and fee changes, with
particular focus on the cash-in-lieu fee. Invitees for this event were in development, realty, large business, or
other typical key accounts. Materials about the proposed rate and fee changes (particularly the cash-in-lieu
fee) also were posted on the Utilities website for review (www.fcgov.com/development-fees
<http://www.fcgov.com/development-fees>).
In addition, staff presented the proposed WSR (cash-in-lieu) fee changes to several boards/commissions and
other groups, including:
● Affordable Housing Board
● Building Review Commission
● Economic Advisory Board
● Planning & Zoning Commission
● Natural Resources Advisory Board
● Chamber of Commerce
● Fort Collins-Loveland Water District Board
A summary of the key feedback/concerns received from these events included:
● WSR (cash-in-lieu) fee increase was understandable given the rising costs for water supplies
● Concern about rising costs impacting businesses and the affordability of housing
● Desire for WSR and cash-in-lieu fee to promote efficiency
● Confusion and/or disagreement with the buy-in component of the WSR (cash-in-lieu) fee
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● Concern that zoning requires some affordable housing projects to be low density, which will cost more with
WSR and fee changes
● Desire for adjusted Land Use Codes that require less water use
● Consideration for incremental increase of the WSR (cash-in-lieu) fee
● Concern for adjustment to the excess water use surcharge rate
ATTACHMENTS
1. Council Finance Committee (excerpt) (PDF)
2. Energy Board Minutes (excerpt) (PDF)
3. Water Commission Minutes (excerpt) (PDF)
4. Natural Resources Advisory Board (excerpt) (PDF)
5. Powerpoint Presentation (PDF)
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Utilities
electric · stormwater · wastewater · water
PO Box 580
Fort Collins, CO 80522
970.212.2900
V/TDD: 711
utilities@fcgov.com
fcgov.com/utilities
COUNCIL FINANCE COMMITTEE
AGENDA ITEM SUMMARY
STAFF: Donnie Dustin, Water Resources Manager
Lance Smith, Director of Finance, Planning & Administration
Dr. Liesel Hans, Interim Deputy Director of Water Resources & Treatment
DATE: August 24, 2021
SUBJECT: Proposed Changes to the Water Supply Requirements Cash-in-Lieu Fee
EXECUTIVE SUMMARY:
The Water Supply Requirements (“WSR”) and its associated Cash-in-Lieu (“CIL”) Fee generate
the revenue used to ensure that adequate water supplies and associated infrastructure are
available to reliably serve the water needs of development within the City of Fort Collins
Utilities (“Utilities”) water service area. Starting in 2017, the CIL is being reviewed at least
every 2 years. Staff is proposing significant changes to the WSR volume calculations to improve
the precision of how we estimate the water demand of development, which were presented at the
May 11 City Council work session and will be considered for adoption on September 21. In
addition, there have been significant cost increases to the Halligan Water Supply Project and
other water rights required for providing reliable water supplies as growth continues. Unlike
most other fees, the CIL fee increase is a function of unprecedented inflation in costs. Staff
proposes the CIL fee be increased approximately 60% to $68,200 per acre-foot of use at the tap
to reflect these changes.
GENERAL DIRECTION SOUGHT:
•What questions or feedback does the Council Finance Committee have regarding the
proposed CIL fee change?
•What additional information is needed for City Council’s consideration of the proposed
change?
BACKGROUND:
Developing water supplies in Northern Colorado is complex, dynamic, and full of uncertainty.
Climate change, increased competition, permitting issues, and changing growth make developing
these supplies and assessing the cost to do so quite complex. The Utilities’ Water Supply and
Demand Management Policy provides guidance for addressing these uncertainties through
multiple means like developing additional supplies (e.g., Halligan Water Supply Project, etc.),
continued water conservation efforts, and adjusting the WSR and associated CIL fee as needed to
reflect changes in costs. The purpose of this agenda item is to describe the proposed changes to
the CIL fee.
ATTACHMENT 1
2
Water Service Providers in Fort Collins:
Utilities water service area covers the central portion of Fort Collins. Utilities supplies water to
approximately 75% of residents and businesses within the Fort Collins city limits. Water service
in the surrounding areas is provided by other water providers, mainly the East Larimer County
(ECLO) and Fort Collins-Loveland (FCLWD) water districts (see Attachment 1). Each water
service provider has their own drivers (source of supply, development patterns) that determine
their WSR calculations and CIL fee. The proposed CIL fee changes only apply to the Utilities
water service area.
Water Development Fees:
There are three water-related development fees assessed on development in the Utilities water
service area. The first is the WSR and associated CIL fee which assesses the cost to provide
reliable water resources for the new water demand. The second is the water plant investment fee
(“PIF”) which assesses the cost of the treatment and distribution infrastructure required to
process and transport the treated water. Lastly is the tap fee, which assesses the cost of the meter
and connection to the new development. The focus of this agenda item is on the WSR and CIL
fee.
Key Terms and Definitions:
The following are definitions of the WSR and CIL fee. A complete list of terms and definitions
can be found in Attachment 2.
Developers, including greenfield development and redevelopment, must meet a Water
Supply Requirement:
• Water Supply Requirements (“WSR”): A requirement for water service from Utilities.
A WSR accounts for the additional water demand, defined in gallons or acre-feet of
water, brought into the Utilities water service area by a new development or
redevelopment. The developer satisfies a WSR by dedicating water rights or paying cash-
in-lieu of water rights to Utilities. This provides the revenue to develop reliable water
resources for the development, including water rights and associated infrastructure.
WSRs are in line with the City’s approach that development pays for itself.
• Cash-in-lieu (“CIL”) Fee: A developer can meet a WSR by paying cash, instead of
providing water rights. The CIL fee is based on the cost to meet future water needs and
includes the expected cost to acquire water rights and associated infrastructure. The
current cost is $42,518 per 325,851 gallons (1 acre-foot) of use at the tap and the CIL fee
is updated at least every two years.
Goals, Outcomes and Drivers:
The WSR and CIL fee help Utilities follow the City’s strategic plan object ENV 4.4: Provide a
reliable, high-quality water supply, as well as guidance from the City’s Water Supply and
Demand Management Policy, by assuring cash is collected to pay for additional infrastructure or
water rights needed to increase the reliable yield of the Utilities’ water supply system. Utilities is
responsible for ensuring our customers have enough water today and into the future, while
upholding the City approach that development and redevelopment pay their own way. As the
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costs of acquiring and developing water resources have increased, the cost to secure water for the
additional demand have increased too. Since 2018, there has been a significant increase in the
costs to develop water supplies. This is not unique to Utilities – all water providers across the
Front Range are facing a significant increase in costs. Most water providers are shifting to plan
for populations much larger than previously expected, and at the same time, climate change is
dramatically increasing the variability in water availability from year to year. Responsible water
management is essential to meet the needs of Fort Collins today, and to maintain our quality of
life into the future.
Water Supply Requirements (“WSR”):
Although not part of this agenda item, Staff is proposing significant changes to the WSR
calculations to reflect water demands more granularly across varied types of development and to
encourage efficient water use in new development. The key WSR changes include:
• Commercial WSR being based on business type and size versus just tap size
o Better reflects actual use (higher use pays more; lower use pays less)
• Separating indoor and outdoor water needs
o Incentivizes low water use landscapes
• Elimination of the Water Supply Factor from the WSR calculations
o Recognizes that elements of the factor are represented in updated yield modeling
o Reduces confusion for customers who increase their water allotment
The proposed WSR changes mentioned above were described in detail for the May 11, 2021 City
Council Work Session (see link below for materials) and will be presented for action at the
September 21, 2021 City Council regular meeting.
https://citydocs.fcgov.com/?cmd=convert&vid=72&docid=3524135&dt=AGENDA+ITEM&doc
_download_date=MAY-11-2021&ITEM_NUMBER=03
Cash-in-Lieu (“CIL”) Fee:
Once the amount of water needed for a development is determined via the WSR calculations, the
total cost can be calculated via the CIL fee (if the developer does not provide “wet” water rights,
which most do not). In 2017, City Council adopted significant changes to the CIL fee
methodology that became effective in 2018. Prior to that, the CIL fee had not been updated since
2001. With guidance from BBC Research & Consulting (specializing in utility fees and rates),
the methodology adopted was a hybrid between incremental cost and equity buy-in approaches.
An incremental cost approach only considers the additional costs needed to increase its water
supply system capacity to serve new development. An equity buy-in approach places an overall
value on both the existing and future water supply system to determine the CIL fee. A hybrid
combination of both these methods was used since adding capacity to the water supply system
depends on the addition of storage (incremental costs) and use of the existing portfolio of water
supplies (buy-in portion) to make the additional capacity. Each utility determines its approach
based on its own unique factors. For example, East Larimer County Water District’s (ELCO) has
more of an incremental approach, Fort Collins-Loveland Water District (FCLWD) has a hybrid
approach, and the City of Greeley has a full equity buy-in approach.
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The current CIL fee method calculates the cost to increase reliable yield as the sum of:
1. Cost of future infrastructure (e.g., Halligan Water Supply Project, etc.)
2. Cost of future water rights (e.g., local ditch shares)
3. Buy-in to existing water supplies
Using this methodology, the CIL fee was increased by 166% in 2017 (effective in 2018) after
having not been updated since 2001. Staff committed to reviewing and updating the CIL at least
every two years. A 24% increase was adopted in 2019 (effective in 2020). A standard
inflationary 3% increase was adopted (with other Utility fees) in 2020 (effective in 2021).
Over the last few years, there have been significant increases to the expected costs of the
Halligan Water Supply Project (“Halligan”) and the cost of local water rights. Halligan costs
have increased due to permitting length and complexity, rising construction costs, mitigation
needs and access issues. Also, the cost of water rights has increased as much as 22 percent per
year due to competition for these dwindling resources and booming development across the
Front Range. The following presents the three components that go into the CIL fee methodology.
1. Cost of future infrastructure ($201.8M):
Adding storage to the Utilities water supply system (via the Halligan project) will help meet a
majority of the projected future needs by storing existing and future water rights at times of
surplus (e.g., wet years) for use in drought years when other water supplies are diminished. The
Halligan cost used in the 2019 CIL fee update was $74.1M. A Halligan cost update completed in
late 2019 (after outreach on the updated CIL fee) projected a range of costs between $100M and
$150M. A 30 percent design analysis of Halligan is currently being conducted (due for
completion in early 2022). Early indications are that the costs will increase. Therefore, staff
recommends using the upper portion of the 2019 cost analysis range ($150M). For comparison,
alternatives described in the permitting for the Halligan Water Supply Project are up to 4.5 times
more expensive. In addition to Halligan, there are about $5.2M of additional long-term
infrastructure needs. Applying a standard 30% engineering contingency to these needs, the total
estimated future infrastructure costs are $201.8M.
2. Cost of future water rights ($53.4M):
Although the Halligan project is expected to address most of the Utilities water supply needs,
additional water rights are required to meet projected future demands. Utilities currently plans to
acquire about 150-200 additional shares in the North Poudre Irrigation Company (“NPIC”) and
about 300 acre-feet of shares in other local ditch companies (referred to as the Southside Ditches
or “SSD”). Costs for these shares have increased between 11-22% per year in recent years,
roughly doubling their projected costs over the past five years. For example, North Poudre
Irrigation Company shares have gone from $88,000 to $200,000 per share from 2017 to the
present. Applying these market increases and a 30% contingency results in a total estimated
future water right costs of $53.4M.
3. Buy-in to Existing Water Supplies ($264.7M):
New development will be buying into and benefitting from the existing water supply portfolio
that includes valuable and reliable senior direct Poudre flow rights, Colorado-Big Thompson
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Project units and other Horsetooth Reservoir sources. Utilities’ plan for generating new water
supplies requires two main components: infrastructure and wet water. Building a new or larger
“bucket” isn’t valuable without water to store in that bucket. In some years our water rights yield
more water than we use and therefore without storage we underutilize our portfolio. The
majority of the ‘wet water’ used to generate additional supply to meet future demands will come
from using the existing customers’ water supply portfolio in conjunction with the additional
storage. We currently model and estimate the amount to be about 2,645 acre-feet. BBC Research
& Consulting estimated that the Utilities’ water supply portfolio is worth about $3.17B, or about
$100,100 per acre-foot of reliable yield. Applying this amount to the to 2,645 acre-feet of water
used from existing customers water supply portfolio, the value of use of the existing portfolio is
estimated to be $264.7M.
Factor of Safety (20%):
There are many uncertainties in developing water supplies and assessing future growth within
the Utilities service area, including potential impacts of climate change, uncertainty in the
ultimate costs of developing water supplies, the amount and type of development, etc. The
current WSR calculations include a 1.92 water supply factor that among other things, included a
20 percent factor of safety that recognized these uncertainties. The 1.92 factor will be removed
from the WSR calculations due to updated modeling that more accurately captures other
variables included in the factor. This simplifies the calculation and makes it more transparent.
Staff recommends the continuation of the 20 percent factor of safety by incorporating it into the
CIL fee calculation instead of the WSR volume calculation. The continuation of this factor is
justified considering the results of the 2019 Water Supply Vulnerability Study (“Study”)
conducted by Utilities, which identified numerous risks and uncertainties that have not yet been
incorporated into our water supply planning. For example, the Study indicated a 20-35 percent
reduction in water supply reliability from projected temperature increases alone, which suggests
this factor could even be higher than 20 %
Proposed CIL fee:
Combining the components of the CIL fee methodology mentioned above, the following is the
calculation for the proposed CIL fee:
$201.8M: Cost of future infrastructure
$53.4M: Cost of future water rights
$264.7M: Buy-in to existing water supplies
$519.9M: Total cost to increase reliability
6
This results in about a 60 percent increase to the current cost per acre-foot of use (at the tap) of
$42,518. The following table shows a comparison of the values used in the current and proposed
CIL fee that briefly explains what is in the separate components and the rationale for the
changes.
Excess Water Use (“EWU”) Surcharge Rate:
Some non-residential taps (only some commercial businesses and irrigation taps), specifically
those installed after March 1984, have an allotment (annual volume of water in gallons) that is
based upon the WSR that was satisfied at the time of development or redevelopment. Non-
residential taps with allotments face the EWU surcharge if their annual water use exceeds their
allotment, which is in addition to the standard water use rates. Customers can satisfy additional
Component Includes Current Proposed Rationale
1. Cost of future
infrastructure
Halligan estimate + other
minor needs $98.9M $201.8M
Uses upper cost estimate for
Halligan and increases contingency
to correctly match the design phase
2. Cost of future
water rights
NPIC and SSD shares
needed in addition to
Halligan
$28.2M $53.4M
Reflect current market prices. NPIC
shares have increased about 22%
per year in recent years
3. Buy-in to
existing portfolio
Estimate of portfolio
value, and how much
future demand will utilize
$40.5M $264.7M
Corrects approach of basing value
on least valuable water rights, and
previous CIL fees. Total portfolio
conservatively valued at $3.17B.
Total $167.6M $519.9M
Factor of Safety Considers the uncertainty
in water supply planning
1.2 (in WSR
calculation)
1.2 (in CIL fee
calcuation)
New modeling captures much of
what used to be in the 1.92 factor in
the WSR calculation. Retains the
longstanding 20% “factor of safety”.
Cost per acre-foot
of use ~$42,500*~$68,200
* - The current CIL fee includes a standard inflationary 3% increase that was adopted in 2020 (effective in 2021) without
adjustments to the CIL fee components.
7
WSR to increase their allotments. The EWU surcharge provides revenue to purchase additional
water supplies to account for the additional water demand over the allotment and therefore over
the WSR satisfied for the property. As the EWU surcharge rate is based on the CIL fee, the EWU
surcharge rate will also increase by about 60 percent from a rate of $10.39 to $16.67 per 1,000
gallons over the allotment. Utilities has programs to help customers mitigate the impact of these
costs including facility audits, fixture rebates, the Landscape Water Budget program, the
Xeriscape Incentive Program, and the Utilities’ Allotment Management Program, which provides
eligible customers a temporary waiver from the EWU surcharges if they meet certain
qualifications and submit an application detailing a project that demonstrates a long-term water
reduction. Customers potentially impacted by the proposed CIL change have already been
notified through outreach earlier this year.
Development Impacts:
The following graphs show a comparison of the current (in green) and proposed (in blue) costs
for different types of development, along with a comparison with other regional water providers.
Note that the other water provider amounts are only estimates and are based on 2021 rates, not
any expected increases for 2022. The first two graphs compare costs for typical single-family
homes and typical multifamily developments, respectively. The last two graphs compare costs
for use from a ¾-inch tap for a low water use entity (office space) and a high water use
commercial entity (restaurant). Under the current system, both ¾-inch tap customers would pay
the same amount even though there are large differences in water use. The updated WSR
calculations provide more accurate assessment of the different water uses. Although future
higher water use development (like restaurants) will see a significant cost increase from the
proposed changes, these changes should result in allotments that are correctly sized and avoid
those future customers from being charged EWU surcharge fees each year because of an
undersized tap.
8
$13,100
$21,100
$18,300
$18,400
$19,200
$29,000
$32,000
$0 $5,000 $10,000 $15,000 $20,000 $25,000 $30,000 $35,000
Ft. Collins Utilities
Current (Jan 2021)
Ft. Collins Utilities
Proposed (Jan 2022)
Loveland (2021)
Greeley (2021)
Westminster (2021)
East Larimer County
(2021)
Ft. Collins Loveland
(2021)
Cost, rounded to nearest $100 ($)
Water Supply Costs for a Typical Single Family Home in
Northern Colorado
$215,700
$291,200
$240,823
$266,000
$426,400
$553,600
$873,700
$0 $250,000 $500,000 $750,000 $1,000,000
Ft. Collins Utilities
Current (Jan 2021)
Ft. Collins Utilities
Proposed (Jan 2022)
Westminster (2021)
Greeley (2021)
Loveland (2021)
East Larimer County
(2021)
Ft. Collins Loveland
(2021)
Cost, rounded to nearest $100 ($)
Water Supply Costs for Multi-Family Development in
Northern Colorado
9
$38,300
$6,300
$3,600
$6,700
$39,400
$40,000
$40,200
$0 $25,000 $50,000
Ft. Collins Utilities
Current (Jan 2021)
Ft. Collins Utilities
Proposed (Jan 2022)
Westminster (2021)
Greeley (2021)
East Larimer County
(2021)
Ft. Collins Loveland
(2021)
Loveland (2021)
Cost, rounded to nearest $100 ($)
Water Supply Costs for 4,300 sqft Office or 3/4"
Commercial Taps in Northern Colorado
$38,300
$85,000
$39,400
$40,000
$40,200
$57,968
$59,000
$0 $25,000 $50,000 $75,000 $100,000
Ft. Collins Utilities
Current (Jan 2021)
Ft. Collins Utilities
Proposed (Jan 2022)
East Larimer County
(2021)
Ft. Collins Loveland
(2021)
Loveland (2021)
Westminster (2021)
Greeley (2021)
Cost, rounded to nearest $100 ($)
Water Supply Costs for 2,800 sqft Restaurant or
3/4" Commercial Taps in Northern Colorado
10
Summary:
The proposed changes to the CIL fee reflect the unprecedented increasing costs of developing
water supplies, while also addressing the uncertainty in doing so. This obtains the goal of
generating adequate revenue to pay for developing reliable supplies for new development into
the future, while assuring development pays its own way and avoids impacts to current
customers. Although the CIL fee increase is significant, the WSR changes will help balance that
out by being more reflective of actual water use and other changes will enable more
opportunities for future development to lower their water use to minimize costs.
NEXT STEPS:
Staff will be conducting outreach to boards and commissions and stakeholders through October.
Input from these entities will be shared when changes are proposed for adoption by City Council
on November 2 and 16, 2021.
Staff will continue to review and adjust the CIL fee as part of the City’s 2-year rates and fees
adjustment cycle. Although the next update would be in 2023 (effective in 2024), staff may
propose a mid-cycle adjustment depending on the outcome of the Halligan Water Supply Project
30 percent design analysis being conducted (due for completion in early 2022).
Staff is planning to update the Water Supply and Demand Management Policy (“Policy”) in
2023-2024. This effort will integrate the potential impacts of climate change and other
vulnerabilities (per the 2019 Water Supply Vulnerability Study) to determine new planning
criteria around our water supply reliability (e.g., frequency of water restrictions, etc.). The Policy
update will need to consider future water supply and conservation needs, which will likely result
in revisions to the WSR and CIL fee.
ATTACHMENTS:
1. Fort Collins Area Water Districts Map (PDF)
2. Definitions and Terms (PDF)
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Fort Collins Area Water Districts
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Water Districts
East Larimer County Water District
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Fort Collins Utilities (Water)
Sunset Water District
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GMA
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Major Streets
Figure Updated: 10/23/2018
All boundaries are approximate
ATTACHMENT 1
Information current as of May 2021
Definitions and Terms related to Water Supply Requirements Update
•Acre-foot: An acre-foot is equivalent to 325,851 gallons. One acre-foot can supply around three
to four single family homes in Fort Collins per year. For comparison, the maximum volume of
Horsetooth Reservoir is about 157,000 acre-feet.
•Allotment: The volume of water a given tap can use per year before incurring Excess Water Use
surcharges. Only non-residential taps installed after 1984 have water allotments. The allotment
volume is based on the amount of Water Supply Requirement satisfied at the time of
development plus any increases to the allotment paid for after development. A customer may
increase their allotment at any time by paying cash or providing additional water rights.
•Allotment Management Program: Provides eligible Utilities water customers with a temporary
waiver from their Excess Water Use surcharges if they meet certain qualifications and submit an
application detailing a project that demonstrates long-term water reductions.
•Cash-in-lieu: The cash equivalent of the water supply required to meet the needs of
development. The cash-in-lieu fee is based off the cost to meet future water needs and includes
the expected cost to acquire water rights and associated infrastructure. The current cost is
$42,518 per 325,851 gallons and is updated every two years.
•Duplex: Residential buildings of two dwelling units.
•Dwelling Unit: One or more rooms and a single kitchen designed for or occupied as a unit by
one family for living and cooking purposes, located in a single-family or multifamily dwelling.
•ELCO: East Larimer County Water District. Water district that generally serves the northeastern
portion of the Fort Collins Growth Management Area. Map found here.
•Excess Water Use (EWU) surcharge: A volumetric charge assessed on all water used through
the remainder of the calendar year once a non-residential customer has exceeded their annual
allotment. The EWU is applied in addition to the regular utility rates. This surcharge is tied to the
cash-in-lieu fee for the Water Supply Requirements and is evaluated every two years. Revenue
from the EWU surcharge goes toward acquiring, developing and improving Utilities’ water
supplies to address the impact of customers exceeding their planned allotment. The current EWU
surcharge is $10.39 per 1,000 gallons over the allotment.
•FCLWD: Fort Collins-Loveland Water District. Water district that generally serves all areas south
of Harmony Road in the Fort Collins Growth Management Area. Map found here.
•Multifamily: Residential development with three or more dwelling units
•Non-residential: All commercial, industrial, public entity, group housing, nursing homes,
fraternities, hotels, motels, commonly owned areas, club houses, and pools, including HOA
common spaces and irrigation accounts.
•Plant Investment Fees: Water Impact Fee paid by the developer to cover the cost of
transmission, treatment, and distribution of water to a new development.
•Residential: Single-family, duplex, mobile / manufactured homes, and multi-family dwelling units,
including fraternity and sorority multifamily housing.
ATTACHMENT 2
Information current as of May 2021
•Water Impact Fees: Fees met by developers to cover the costs of acquiring water supply, the
transmission, treatment, and distribution of water, as well as installation of cost of the water
meter.
•Water Supply Factor (1.92): Factor historically included in Water Supply Requirement
calculations to account for annual variation in water right yields, different sources of supplies,
losses between water sources and the taps, and annual variations in water demands.
•Water Supply Requirements (WSR): Water Supply Requirements (WSRs) are part of the Water
Impact Fees met by developers to account for the additional demand created from new
development. WSR is a requirement for water service from Utilities. A WSR accounts for the
additional water demand, defined in gallons or acre-feet of water, brought into the Utilities water
service area by a new development or redevelopment. The developer satisfies a WSR by
dedicating water rights or paying cash-in-lieu to Utilities. This provides the revenue to develop
reliable water resources for the development, including water rights and associated infrastructure.
WSRs are in line with the approach that development pays for itself.
ATTACHMENT 2
ENERGY BOARD
REGULAR MEETING – DRAFT – ABRIDGED FOR 2022 RATES & FEES
September 9, 2021 – 5:30 pm
222 Laporte Ave. – Colorado Room
ROLL CALL
Board Members Present: Jeremy Giovando (remote), Alan Braslau (remote), Steve Tenbrink, Dan
Gould, Bill Becker
Board Members Absent: Marge Moore, John Fassler, Sue McFaddin
OTHERS PRESENT
Staff Members Present: Christie Fredrickson, John Phelan, Cyril Vidergar (remote), Tim McCollough,
Brad Smith (remote), Randy Reuscher, Lance Smith (remote)
Members of the Public: Rich Stave (remote)
2022 RATES & FEES
Randy Reuscher, Lead Analyst, Utility Rates
(attachments available upon request)
In years past there have been several rate changes, but the changes for 2022 are quite minimal.
Proposed changes for 2022 include a 2% increase in monthly electric charges, a 3.5% increase in electric
capacity fees (ECFs), and a code language change to allow choice for all-electric Time of Day (TOD)
customers.
Staff is not proposing any changes to water, wastewater, or stormwater monthly utility rates. The 2%
increase for electric does not include a distribution increase, it is entirely related to a proposed wholesale
increase from Platte River Power Authority. They are proposing a 3.2% increase and Fort Collins is
expected to realize a lower impact at 2.8% increase (which is less than the other owner communities).
Mr. Reuscher explained that the average electric bill currently runs at $78.14 per month, and the 2%
increase will increase the average bill $1.56 per month. He also noted that Fort Collins remains one of the
lowest-cost Utilities in the state.
The 3.5% ECF increase applies to both residential and commercial developments, the cost per kW
charge increases from $177.17/kW to $183.37/kW. These charges are allocated based on estimated
demands from any particular development. Board member Braslau wondered if there is a need to
consider policy change as the City moves toward encouraging electrification. Mr. Phelan said yes, there
will need to be alignment in the future between changing definitions in the building code with the capacity
we are installing and forecasted usage. Chairperson Becker wondered if ECF fees apply to remodeling
projects. Mr. Reuscher confirmed the fees would be assessed if the customer is upgrading their electric
panel, but they would typically be offered a credit based on what they currently have and what they are
moving toward.
The third proposed change would modify code for all-electric TOD customers, allowing them a choice
between the two available TOD structures. This change primarily benefits all-electric customers in
smaller dwelling units (low consumptions). The change would be effective January 1, 2022, averaging
about $2 per month difference on average.
Board Braslau said it would be less confusing to have an all-electric rate where the tier kicks in at 1,100
kWh (or whatever the threshold should be). Mr. Reuscher said staff is happy to do a rate comparison with
ATTACHMENT 2
ENERGY BOARD
REGULAR MEETING
any inquiring customer.
Board member Tenbrink wondered why the City of Longmont’s rates are less expensive than City of Fort
Collins. Mr. Reuscher said there are many things affecting their rate; they are currently going through an
Advanced Metering Infrastructure deployment (which Fort Collins completed several years ago) and
Longmont is also not at 100% underground infrastructure y et.
Board member Becker said the objective shouldn’t been the lowest rates, but rather the greenest, and
equity issues should be dealt with separately. Mr. Phelan said we have a robust set of energy services,
extraordinary reliability, and very affordable rates, which is an amazing combination. The Utility’s level of
service at the cost structure the Utility offers is excellent.
Board member Braslau moved the Energy Board support the proposed changes to 2022 electric
utility rates and fees.
Board member Tenbrink seconded the motion.
Discussion:
Mr. McCollough added these rates and fees presented here are also supportive of the City Manager’s
recommended budget.
Vote on the motion: It passed unanimously, 5 to 0, with three absent.
Excerpt from DRAFT MINUTES WATER COMMISSION
REGULAR MEETING
October 21, 2021, 5:30-7:30 p.m.
Online via Zoom
10/21 /20 2 1 – DRAFT MINUTES Page 1
2022 Utility Rates and Fees
Donnie Dustin, Water Resources Manager, and Randy Reuscher, Utility Rate Analyst,
presented on ordinances related to proposed 2022 rates and fees that are being brought
forward as part of the City Council agenda, along with a change to the Cash-in-Lieu fee
which will generate revenue used to ensure adequate and reliable water for develo pment
within the City of Fort Collins Utilities water service area.
Discussion Highlights
A Commissioner clarified that the proposed changes would only apply to customers within
the Fort Collins Utilities water service area, and not the entirety of the gr owth management
area. Another Commissioner requested clarification about the figure for increased reliability
(9,150 acre-feet), which Mr. Dustin responded is a modeled value that factors in the
Halligan Dam Project and other water rights in an attempt to calculate the incremental cost
per acre-foot of additional firm yield. Another Commissioner noted that, considering the rise
in rates and fees introduced in this presentation, as well as the rise in construction costs
presented in the earlier Building Code updates, the cost of building a home in Fort Collins
will rise by nearly $11K.
Commissioner Ortman moved that the Water Commission recommend City Council
adopt the proposed changes to the Utilities rates and fees, including changes to the Cash -
in-Lieu Fee associated with the Water Supply Requirements.
Commissioner Brown seconded the motion.
A Commissioner inquired about how often the adjustments will be revisited, and Mr. Dustin
responded that it will be every two years.
Vote on the Motion: it passed unanimously, 6-0, with Commissioner Chinnasamy
abstaining as he will no longer be residing in the Fort Collins Growth Management Area
starting later this month, and Commissioner Herman abstaining as he is actively involved in
home building projects that may reflect a conflict of interest competitively due to resulting
higher home construction costs.
These minutes will be approved by the Water Commission on November 18, 2021.
ATTACHMENT 3
Excerpt from unapproved MINUTES of the NATURAL RESOURCES
ADVISORY BOARD
TYPE OF MEETING – REGULAR
October 20, 2021 6:00 – 8:30 pm
Via Zoom
8/18/21 – MINUTES Page 1
Utilities Water Supply Requirements Cash-in-Lieu Fee Changes - Donnie Dustin
−The proposal is to increase the Water Supply Requirements Cash-in-Lieu (CIL)
fee to $68,200 per acre-foot from the current cost of ~$42,500 per acre-foot at
the tap. The reasons for this increase are because of significant water supply
cost increases and future uncertainties in developing water.
−Water supply planning has many uncertainties such as increased
competition, permitting issues, changing growth, and climate change.
These uncertainties will require additional water supply (e.g. Halligan Water
Supply Project) and continued water conservation to address the cost to
plan and manage our water.
−There are several water districts in the Fort Collins area. The proposed
changes would only apply to new development and re-development within
Fort Collins Utilities water service area.
−Development within the City pays for water through Fort Collins Water
Supply Requirements (WSR) that includes source of supply (Horsetooth
Reservoir and Cache La Poudre River), water rights, storage and
transmission, and Plant Investment Fees (water treatment and distribution).
−Development requires additional water demand. The water supply
requirements to meet that additional water demand is the Total Water
Supply Cost. It is designed to ensure adequate water and that developers
pay their own way.
−City Council adopted water supply requirement changes on October 5, to
change from a tap size-based to a business type based-assessment of
water, and to require separate irrigation taps based on landscape use.
−The cost of the water supply (Cash-in-Lieu Fee) would apply to new
development, but would also translate to water allotments for commercial
and irrigation customers.
−The proposed $519.9 million ($68,200/acre foot) cost (a 60% increase to current
rates) to increase water reliability consists of:
−The cost of future infrastructure
−Including building Halligan Water Supply Project. additional
infrastructure needs, and engineering contingency fees. Other costs
would include increasing costs of current water shares and
ATTACHMENT 4
NATURAL RESOURCES ADVISORY BOARD
TYPE OF MEETING – REGULAR
10/20 /21 – MINUTES Page 2
contingency
− The proportional buy-in to existing water supplies. This portfolio is being
updated to reevaluate all water sources
− A 20% factor of safety of the reliability of the system due to uncertainties
including climate change.
− The Excess Water Use Surcharge per 1,000 gallons over allotment will also
go up 60% from $10.39 to $16.67.
− Summary:
− The proposed CIL fee reflects cost to provide reliable supplies, assures
development pays its own way, and considers various uncertainties
− The revised WSR calculations more accurately reflect use through a data-
driven approach, (higher use pays more, lower use pays less), and flexibility
to lower use/costs.
− Next steps:
− Outreach in September-October and Council consideration November
2 and 16.
− This is part of a two-year rate/fee change cycle
− The Water Supply & Demand Management Policy to be updated in
2023 to reflect potential impacts of climate change
− Discussion
− Danielle - Q - Regarding the drought impact on the river and climate
change, is a 20% uncertainty factor enough? A - The 20% in this report
reflects a traditional factor as part of this package. When the Water Supply
and Demand Management Policy is updated, this factor will be carefully
evaluated and integrated into the policy.
− Barry - Q - Suggested the City consider that water will set the limit to growth
and needs to considered. The availability of water is not static with
increased demand, but the availability of water is decreasing with increased
demand. When will the City realize there should be an end to growth? A -
Climate change is impacting water supplies. However, this question would
need to be discussed and evaluated at a higher level.
− Barry - Q - The city needs a planning horizon with projections of future
conditions and the City should work towards those projections. A - We
have seen lower water use over time. The City's Water Resources group is
using that trend to project future water needs.
NATURAL RESOURCES ADVISORY BOARD
TYPE OF MEETING – REGULAR
10/20 /21 – MINUTES Page 3
− Kevin - Agreed that a 20% uncertainty factor may be too low and suggested
water issues are too important to underestimate the unknowns to help give
citizens more confidence in water protections.
− Danielle - Q - Seeing how Fort Collins' rates compare to other cities in the
region, it seems there is room to safely increase the protective uncertainty
factor. She suggests preparing for the time when conservation will no
longer provide any benefit to demand for water. A - Our current planning
criteria under the current policy is to prepare for a 1/50 drought. There is
still a lot of opportunity for conservation of outdoor water usage.
− Danielle - Q - When was the policy last updated? What is the timeline ask
of the NRAB? A - The policy was last updated in 2012 and it is anticipated
to update it again in 2023-2025. However, there are ongoing studies on
various things in anticipation of that update. The presentation is
informational, but if the NRAB wants to give feedback it would need to be
soon. First reading by Council will be November 2.
Utilities: 2022 Utility Rates, Fees and Charges10-21-2021City CouncilRandy Reuscher, Utilities Lead Rate AnalystDonnie Dustin, P.E., Utilities Water Resources Manager1ATTACHMENT 5
2Utility Rates & Fees•Monthly Utility Rates•Plant Investment Fees•Water Supply Requirements: Cash-in-Lieu Fee
Fort Collins Area Water Districts3Proposed water-related changes would apply onlyto customers withinFort Collins Utilities water service area.3
4Monthly Utility Rates & Plant Investment Fees
52022 Utility Rates & Fees
62022 Utility RatesUTILITY2022 PROPOSED INCREASEELECTRIC2%WATER0%WASTEWATER0%STORMWATER0%
72022 Utility Rates
HORSETOOTHRESERVOIRHow Development Pays for Water 8PLANT INVESTMENT FEES (PIFs)DISTRIBUTIONWATER TREATMENTWATERTREATMENTWATER METERSWATER SUPPLY REQUIREMENTS (WSR)Source of Supply, which includes water rights, storage and transmissionCACHE LAPOUDRE RIVERWATERSUPPLYWASUHORSETOOTHRESERVOIR
92022 Plant Investment FeesUtility Fee2022 Proposed IncreaseElectric Capacity Fee (ECF) 3.5%Water Plant Investment Fee (PIF) 3.8%Wastewater Plant Investment Fee (PIF) 3.4%Stormwater Plant Investment Fee (PIF) 3.9%
10Water Supply Requirements: Cash-in-Lieu Fee
11What are Water Supply Requirements?DevelopmentAdditional Water DemandWater Supply Requirements (WSR)Volume of water needed to meet additional demand Cost of water supplies (cash-in-lieu)Total WSR CostCost of water supplies (cash-in-lieu)
WSR ChangesChanges adopted by City Council on October 5Changes include:•Tap size-based to business type-based•Separate irrigation taps based on landscape typeElimination of water supply factor•Elements better represented in modeling•Avoids customer confusion12
13Future Water Supply Needs$201.8M: Cost of future infrastructure$53.4M: Cost of future water rights +$264.7M: Proportional buy-in to existing water supplies______________________________________$519.9M: Total cost to increase reliabilityHow much will it cost to increase reliability?
Proposed Cash-in-Lieu FeeCurrent cost per acre-foot of use at tap: $42,518 (considers loss of factor in WSR calculations)$16.67: Proposed Excess Water Use Surcharge per 1,000 gallons over allotment (current = $10.39)14Cost to Increase ReliabilityIncreased ReliabilityxFactorofSafety=$519.9ܯ9,150ܣܨݔ1.2=$ૡ,/ࢇࢉ࢘ࢋ − ࢌ࢚
Cost Impacts15Development Impacts
16$11,900$18,400$14,900$15,900$16,900$29,000$31,700$0 $5,000 $10,000 $15,000 $20,000 $25,000 $30,000$35,000Ft. Collins UtilitiesCurrent (Jan 2021)Ft. Collins UtilitiesProposed (Jan 2022)Westminster(proposed 2022)Greeley(proposed 2022)Loveland(proposed 2022)East Larimer County(2021/2022)Ft. Collins Loveland(2021/2022)Cost, rounded to nearest $100 ($)Water Supply Costs for a Typical Single Family Home in Northern Colorado
17$215,700$291,200$250,182$280,600$435,500$553,600$961,000$0 $250,000 $500,000 $750,000$1,000,000Ft. Collins UtilitiesCurrent (Jan 2021)Ft. Collins UtilitiesProposed (Jan 2022)Westminster(proposed 2022)Greeley(proposed 2022)Loveland(proposed 2022)East Larimer County(2021/2022)Ft. Collins Loveland(2021/2022)Cost, rounded to nearest $100 ($)Water Supply Costs for Multi-Family Development in Northern Colorado
18$38,300$6,300$3,600$7,100$39,400$41,000$44,000$0 $25,000 $50,000Ft. Collins UtilitiesCurrent (Jan 2021)Ft. Collins UtilitiesProposed (Jan 2022)Westminster(proposed 2022)Greeley(proposed 2022)East Larimer County(2021/2022)Loveland(proposed 2022)Ft. Collins Loveland(2021/2022)Cost, rounded to nearest $100 ($)Water Supply Costs for 4,300 sqft Office or 3/4" Commercial Taps in Northern Colorado
19$38,300$85,000$39,400$41,000$44,000$59,184$62,200$0 $25,000 $50,000 $75,000$100,000Ft. Collins UtilitiesCurrent (Jan 2021)Ft. Collins UtilitiesProposed (Jan 2022)East Larimer County(2021/2022)Loveland(proposed 2022)Ft. Collins Loveland(2021/2022)Westminster(proposed 2022)Greeley(proposed 2022)Cost, rounded to nearest $100 ($)Water Supply Costs for 2,800 sqft Restaurant or 3/4" Commercial Taps in Northern Colorado
Proposed CIL fee reflects cost to provide reliable supplies•Assures development pays its own way•Considers various uncertaintiesRevised WSR calculations reflect use more accurately•Data-driven approach•Higher use pays more; lower use pays less•Flexibility to lower use/costs (e.g., lower water use landscapes)Summary20
For Questions or Comments, Please Contact:THANK YOU!Donnie Dustinddustin@fcgov.com, 970-416-205321Randy Reuscherrreuscher@fcgov.com, 970-221-6748More info @ fcgov.com/development-fees
-1-
ORDINANCE NO. 146, 2021
OF THE COUNCIL OF THE CITY OF FORT COLLINS
AMENDING CHAPTER 26 OF THE CODE OF THE CITY OF FORT
COLLINS TO REVISE ELECTRIC RATES, FEES, AND CHARGES AND
UPDATING RELATED PROVISIONS
WHEREAS, the City Council is empowered and directed by Article XII, Section 6, of the
City Charter to fix, establish, maintain and provide for the collection of such rates, fees or
charges for utility services furnished by the City as will produce revenues sufficient to pay the
costs, expenses and other obligations of the electric utility, as set forth therein; and
WHEREAS, the rates, fees or charges for utility services set forth herein are necessary to
produce sufficient revenues to provide the utility services described herein; and
WHEREAS, revenues from the rates, fees or charges for utility services set forth herein
shall be used to defray the costs of providing such utility services as required by the Charter and
the City Code; and
WHEREAS, the City purchases bulk wholesale electric power from Platte River Power
Authority (“PRPA”) pursuant to an Amended Contract for Supply of Electric Power and Energy,
dated May 30, 2019; and
WHEREAS, Utilities staff has determined the increased system costs will require an
additional average 2% rate increase at the Electric Utility Enterprise Fund level in 2022 in order
to remain consistent with Article XII, Section 6, of the City Charter; and
WHEREAS, in addition to adjusting electric rates, Utilities staff has identified formatting
and terminology updates for Chapter 26 of the City Code to improve the clarity with which
electric rates are stated and applied for billing and customer generation credit purposes; and
WHEREAS, the Energy Board considered the proposed electric rates and methods of
application at its September 9, 2021, regular meeting, and provided recommendations of
approval of proposed rate sets to City Council; and
WHEREAS, the City Council Finance Committee considered the proposed electric rates
and methods of application as part of a progressive plan presented at its October 19, 2020,
regular meeting, and provided recommendations of approval of proposed rates to the full City
Council; and
WHEREAS, the City Manager and staff recommend to the City Council the following
electric rate adjustments and City Code rate language clarifications for all billings issued with
meter readings on or after January 1, 2022; and
WHEREAS, based on the foregoing, it is the desire of the City Council to amend Chapter
26 of the City Code to revise the electric rates, fees and charges as set forth herein.
-2-
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF
FORT COLLINS as follows:
Section 1. That the City Council hereby makes and adopts the determinations and
findings contained in the recitals set forth above.
Section 2. That Section 26-391(a) of the Code of the City of Fort Collins is hereby
amended to include the following additional and updated definitions:
Sec. 26-391. - Definitions; application.
(a) The following words, terms and phrases, when used in this Article, shall have the
meanings ascribed to them in this Section:
…
Community-based project shall mean a net metering service installation that meets all of
the following criteria:
(i) is comprised of one or more qualifying facilities with a generating capacity of less
than one mega-watt;
(ii) uses a qualifying renewable technology;
(iii) is operated for the benefit of individual electricity customers of a defined
development community; and
(iv) the operating community organization or cooperative has formally dedicated
beneficial use of the aggregated energy generated by the qualifying facility to individual
electric customers in the defined community.
…
Customer-generator shall mean an electricity customer of the utility that generates
electricity on the customer's side of the meter using a qualifying renewable technology or has
beneficial use of such generation through a community-based project.
…
Net metering service shall mean that service available to a customer operating or with
beneficial use of a qualifying facility using a qualifying renewable technology that is
interconnected to the electric utility so that any electric energy generated by the qualifying
facility in excess of that used by the qualifying facility (net energy) is delivered to the electric
utility system. Credits for net energy are applied and used in accordance with this Code and
applicable Financial Officer administrative rules and regulations to offset charges for metered
energy and other non-telecom utility services received by the customer during the billing period.
-3-
Subscriber-owned facility shall mean a community solar distributed energy project owned
and/or operated by Fort Collins Utilities, Platte River Power Authority or a third-party pursuant
to an "Interconnection Agreement" and/or "Power Purchase Agreement" with Fort Collins
Utilities, offering Fort Collins Utilities electric service customers shared or beneficial ownership
of project-generated electricity on a subscription or dedicated beneficial-use basis.
Section 3. That Section 26-444 of the Code of the City of Fort Collins is hereby
amended to read as follows:
Sec. 26-444. - Customer generation of electric service.
A customer-generator may furnish electric service to the customer-generator's own
property for use by the customer-generator subject to the following restrictions:
…
(3) Any interconnection, parallel generation or net metering service arrangements are
subject to the requirements and rates, fees and charges set forth in the applicable rate
schedule in Division 4 of this Article. For purposes of determining the qualifying size and
capacity for a community-based project under such schedules, each customer-generator’s
beneficial use will be measured against the customer’s historical consumption.
…
Section 4. That Section 26-464 of the Code of the City of Fort Collins is hereby
amended to read as follows:
Sec. 26-464. - Residential energy service, schedule R.
. . .
(c) Monthly rate. The monthly rates for this schedule shall be the sum of the
following charges applied to all energy consumption on or after January 1, 20212.
Description Unit Component
Charge
Billed
Charge
(including
PILOT)
a. Payment in lieu of taxes (PILOT) and franchise. A
charge based on all component charges pursuant to this
Section
6 percent
b. Fixed Charge Per
account
$8.10 $9.05 $8.59 $9.59
c. Distribution facilities charge (applied to
energy charges in d.1. and d.2. below)
Per
kWh
$0.0275
$0.0257
d. Wholesale Energy Charge (combined energy and demand costs)
1. Summer. For billings based on consumption during the months of May, June, July,
August, and September
(a) On-Peak (Mon-Fri, 2 pm to 7 pm, Per $0.2201 $0.2624
-4-
excluding holidays) kWh $0.2293 $0.2703
(b) Off-Peak Per
kWh
$0.0404
$0.0419
$0.0719
$0.0716
2. Non-summer. For billings based on consumption during the months of January
through April and October through December.
(a) On-Peak (Mon-Fri, 5 pm to 9 pm,
excluding holidays)
Per
kWh
$0.1840
$0.1962
$0.2242
$0.2352
(b) Off-Peak Per
kWh
$0.0404
$0.0419
$0.0719
$0.0716
e. Energy efficiency tier charge, per kilowatt
hour for total consumption over 700 kWh in
a billing month (regardless of on-peak or off-
peak)
Per
kWh
$0.0232 $0.0246
f. Income-qualified assistance discount. Discount
applied to effective monthly charges in "a.", "b.", "c."
and “d.” for IQAP participating residential customers,
as further described in Section 26-724 of the Code.
23 percent
(d) Medical assistance program.
. . .
(3) a. Durable Medical Equipment (DME). The discounted monthly rates for customers
with electrical durable medical equipment only shall be the sum of the following
charges, applied to all energy consumption on or after January 1, 20212:
Description Unit Component
Charge
Billed Charge
(including
PILOT)
1. Payment in lieu of taxes (PILOT) and franchise.
A charge based on all component charges pursuant to
this Section
6 percent
2. Fixed Charge Per
account
$8.10 $9.05 $8.59 $9.59
3. Distribution facilities charge (applied
to energy charges in 4.a) and 4.b) below)
Per
kWh
$0.0275
$0.0257
4. Energy and demand charge
a) Summer. For billings based on consumption during the months of May, June, July,
August, and September
(i) On-Peak (Mon-Fri, 2 pm to 7 pm,
excluding holidays) Per kWh $0.1541
$0.1605
$0.1924
$0.1973
(ii) Off-Peak Per kWh $0.0283
$0.0293
$0.0591
$0.0583
-5-
b) Non-summer. For billings based on consumption during the months of January
through April and October through December.
(i) On-Peak (Mon-Fri, 5 pm to 9 pm,
excluding holidays) Per kWh $0.1288
$0.1373
$0.1656
$0.1728
(ii) Off-Peak Per kWh $0.0283
$0.0293
$0.0591
$0.0583
5. Energy efficiency tier charge, per
kilowatt hour for total consumption over
700 kWh in a billing month (regardless of
on-peak or off-peak)
Per kWh
$0.0232 $0.0246
(4) a. Air Conditioning (A/C). The discounted monthly rates for customers with medical
needs requiring air conditioning only shall be the sum of the following charges, applied to all
energy consumption on or after January 1, 20212:
Description Unit Component
Charge
Billed
Charge
(including
PILOT)
1. Payment in lieu of taxes (PILOT) and franchise.
A charge based on all component charges pursuant to
this Section
6 percent
2. Fixed Charge Per
account
$8.10 $9.05 $8.59 $9.59
3. Distribution facilities charge (applied to
energy charges in 4.a) and 4.b) below)
Per
kWh
$0.0275
$0.0257
4. Energy and demand charge
a) Summer. For billings based on consumption during the months of May, June, July,
August, and September
(i) On-Peak (Mon-Fri, 2 pm to 7 pm,
excluding holidays)
Per kWh $0.0404
$0.0419
$0.0719
$0.0716
(ii) Off-Peak Per kWh $0.0404
$0.0419
$0.0719
$0.0716
b) Non-summer. For billings based on consumption during the months of January
through April and October through December.
(i) On-Peak (Mon-Fri, 5 pm to 9 pm,
excluding holidays)
Per kWh $0.1840
$0.1962
$0.2242
$0.2352
(ii) Off-Peak Per kWh $0.0404
$0.0419
$0.0719
$0.0716
5. Energy efficiency tier charge, per
kilowatt hour for total consumption over
700 kWh in a billing month (regardless of
on-peak or off-peak)
Per kWh $0.0232 $0.0246
-6-
(5) a. Durable Medical Equipment (DME) & A/C. The discounted monthly rates for customers
with electrical durable medical equipment and medical needs requiring air conditioning shall be
the sum of the following charges, applied to all energy consumption on or after January 1,
20212:
Description Unit Component
Charge
Billed
Charge
(including
PILOT)
1. Payment in lieu of taxes (PILOT) and franchise.
A charge based on all component charges pursuant to
this Section
6 percent
2. Fixed Charge Per
account
$8.10 $9.05 $8.59 $9.59
3. Distribution facilities charge (applied
to energy charges in 4.a) and 4.b) below)
Per
kWh
$0.0275
$0.0257
4. Energy and demand charge
a) Summer. For billings based on consumption during the months of May, June, July,
August, and September
(i) On-Peak (Mon-Fri, 2 pm to 7 pm,
excluding holidays)
Per kWh $0.0404
$0.0419
$0.0719
$0.0716
(ii) Off-Peak Per kWh $0.0283
$0.0293
$0.0591
$0.0583
b) Non-summer. For billings based on consumption during the months of January
through April and October through December.
(i) On-Peak (Mon-Fri, 5 pm to 9 pm,
excluding holidays)
Per kWh $0.1288
$0.1373
$0.1656
$0.1728
(ii) Off-Peak Per kWh $0.0283
$0.0293
$0.0591
$0.0583
5. Energy efficiency tier charge, per
kilowatt hour for total consumption over
700 kWh in a billing month (regardless of
on-peak or off-peak)
Per kWh $0.0232 $0.0246
. . .
(f) Excess capacity charge. The monthly capacity charge kilowatt set forth in this Subsection (f)
may be added to the above charges for service to intermittent loads in accordance with the
provisions of the Electric Service Standards.
Unit Component Charge Billed Charge
(including PILOT)
Per kW $2.39 $2.44 $2.53 $2.58
. . .
-7-
(p) Net metering.
. . .
(5) The customer-generator’s consumption of energy from the utility and production of
energy that flows into the utility's distribution system shall be measured on a monthly
basis. The energy from the utility consumed by the customer-generator shall be billed at
the applicable rates under Subsection (c) of this Section. The energy produced by the
customer-generator shall be credited to the customer monthly as follows, applied to all
generation returned to the grid on or after January 1, 20212.
Description Unit Component
Credit
Bill
Credit
1. Distribution facilities credit (applied to credits
in 2. and 3. below)
Per
kWh
$0.0217
2. Energy and demand credit - For billings based on generation during the
months of May, June, July, August and September
a) On-Peak (Mon-Fri, 2 pm to 7 pm, excluding
holidays)
Per
kWh
$0.2201
$0.2293
$0.2418
$0.2510
b) Off-Peak Per
kWh
$0.0404
$0.0419
$0.0621
$0.0636
3. Energy and demand credit - For billings based on generation during the
months of January through April and October through December
a) On-Peak (Mon-Fri, 5 pm to 9 pm, excluding
holidays)
Per
kWh
$0.1840
$0.1962
$0.2057
$0.2179
b) Off-Peak Per
kWh
$0.0404
$0.0419
$0.0621
$0.0636
. . .
(r) Net metering—Community solar projects.
. . .
(3) The customer's consumption of energy from the utility and interest in the production of
energy that flows into the utilities' distribution system shall be measured on a monthly
basis. The energy from the utility consumed by the customer-generator shall be billed at
the applicable rates under Subsection (c) of this Section. The method used to measure
energy produced and issue credits under this Section shall be the same for subscriber-
owned facilities and dedicated program-managed facilities. The energy produced by the
customer-generator shall be credited to the customer monthly as follows, applied to all
generation returned to the grid on or after January 1, 20212.
Description Unit Component
Credit
Bill
Credit
1. Distribution facilities credit (applied to credits
in 2. and 3. below)
Per
kWh
$0.0109
2. Energy and demand credit - For billings based on generation during the months of
May, June, July, August and September
-8-
a) On-Peak (Mon-Fri, 2 pm to 7 pm, excluding
holidays)
Per
kWh
$0.2201
$0.2293
$0.2310
$0.2402
b) Off-Peak Per
kWh
$0.0404
$0.0419
$0.0513
$0.0528
3. Energy and demand credit - For billings based on generation during the months of
January through April and October through December
a) On-Peak (Mon-Fri, 5 pm to 9 pm, excluding
holidays)
Per
kWh
$0.1840
$0.1962
$0.1949
$0.2071
b) Off-Peak Per
kWh
$0.0404
$0.0419
$0.0513
$0.0528
. . .
Section 5. That Section 26-465 of the Code of the City of Fort Collins is hereby
amended to read as follows:
Sec. 26-465. - All-electric residential service, schedule RE.
(a) Availability. The residential demand service rate, schedule RE, shall be available
within the corporate limits of the City and the suburban fringe for qualifying
customers as an alternative to schedule R. Service under this rate class is available
only to customers who establish to the satisfaction of the utility, by providing to
the utility such documentation as the utility may deem appropriate, that the
residence served is heated entirely by electric energy. Such documentation must
be submitted by April 1, 2012. At such time that the utility implements a time-of-
use rate, this rate schedule will no longer be available.
(b) Applicability. This schedule applies to residential customers qualifying under
subsection (a) who opt not to receive services under schedule R, for all domestic
uses in single-family private dwellings, individually metered apartments and
home occupations as defined in Article 5 of the Land Use Code.
(c) Monthly rate.
(1) The monthly rates for this schedule shall be the sum of the following charges, applied
to all energy consumption on or after January 1, 20212.
Description Unit Component
Charge
Billed
Charge
(including
PILOT)
a. Payment in lieu of taxes (PILOT) and franchise.
A charge based on all component charges pursuant to
this Section
6 percent
b. Fixed Charge Per
account
$8.10 $9.05 $8.59 $9.59
c. Distribution facilities charge
(applied to charges in d.1. and d.2.
Per kWh $0.0354
$0.0330
-9-
below)
d. Energy and demand charge
1. Summer. For billings based on consumption during the months of May, June, July
and August, and September
a) On-Peak (Mon-Fri, 2 pm to 7 pm,
excluding holidays) Per kWh $0.2201
$.0.2293
$0.2708
$.0.2781
b) Off-Peak Per kWh $0.0404
$0.0419
$0.0804
$0.0794
2. Non-summer. For billings based on consumption during the months of January
through April and October through December.
a) On-Peak (Mon-Fri, 5 pm to 9 pm,
excluding holidays) Per kWh $0.1840
$0.1962
$0.2326
$0.2430
b) Off-Peak Per kWh $0.0404
$0.0419
$0.0804
$0.0794
e. Income-qualified assistance program ("IQAP")
discount. Discount applied to monthly charges in
"b.", "c." and “d” above for IQAP participating
residential customers, as further described in Section
26-724 of the Code
23 percent
(e) Excess capacity charge. The monthly capacity charge kilowatt set forth in this Subsection
(e) may be added to the above charges for service to intermittent loads in accordance with
the provisions of the Electric Service Standards.
Unit Component
Charge
Billed
Charge
(including
PILOT)
Per kW $2.39 $2.44 $2.53 $2.58
(f) Standby service charges. Standby service, if available, will be provided on an annual
contract basis at a level at least sufficient to meet probable service demand (in kilowatts) as
determined by the customer and approved by the utility according to the following:
(1) Monthly standby distribution charge:
Description Unit Component
Charge
Billed Charge
(including
PILOT)
Contracted standby service, this charge
shall be in lieu of the distribution
facilities charge
Per kW $2.41 $2.46 $2.55 $2.61
For all metered kilowatts in excess of the
contracted amount
Per kW $7.21 $7.35 $7.64 $7.80
. . .
-10-
(q) Net metering.
. . .
(5) The customer-generator's consumption of energy from the utility and production of
energy that flows into the utility's distribution system shall be measured on a monthly
basis. The energy from the utility consumed by the customer-generator shall be billed at
the applicable rates under Subsection (c) of this Section. The energy produced by the
customer-generator shall be credited to the customer monthly as follows, applied to all
generation returned to the grid on or after January 1, 20212.
Description Unit Component
Credit
Bill
Credit
1. Distribution facilities credit (applied to credits in
2. and 3. below)
Per
kWh
$0.0279
2. Energy and demand credit - For billings based on generation during the months of
May, June, July, August and September
a) On-Peak (Mon-Fri, 2 pm to 7 pm, excluding
holidays)
Per
kWh
$0.2201
$0.2293
$0.2480
$0.2572
b) Off-Peak Per
kWh
$0.0404
$0.0419
$0.0683
$0.0698
3. Energy and demand credit - For billings based on generation during the months of
January through April and October through December
a) On-Peak (Mon-Fri, 5 pm to 9 pm, excluding
holidays)
Per
kWh
$0.1840
$0.1962
$0.2119
$0.2241
b) Off-Peak Per
kWh
$0.0404
$0.0419
$0.0683
$0.0698
(r) Net metering—community solar projects.
. . .
(3) The customer's consumption of energy from the utility and interest in the production of
energy that flows into the utilities' distribution system shall be measured on a monthly
basis. The energy from the utility consumed by the customer-generator shall be billed at
the applicable rates under Subsection (c) of this Section. The method used to measure
energy produced and issue credits under this Section shall be the same for subscriber-
owned facilities and dedicated program-managed facilities. The energy produced by the
customer-generator shall be credited to the customer monthly as follows, applied to all
generation returned to the grid on or after January 1, 20212.
Description Unit Component
Credit
Bill
Credit
1. Distribution facilities credit (applied to credits in
2. and 3. below)
Per
kWh
$0.0141
2. Energy and demand credit - For billings based on generation during the months of
May, June, July, August and September
-11-
a) On-Peak (Mon-Fri, 2 pm to 7 pm, excluding
holidays)
Per
kWh
$0.2201
$0.2293
$0.2342
$0.2434
b) Off-Peak Per
kWh
$0.0404
$0.0419
$0.0545
$0.0560
3. Energy and demand credit - For billings based on generation during the
months of January through April and October through December
a) On-Peak (Mon-Fri, 5 pm to 9 pm, excluding
holidays)
Per
kWh
$0.1840
$0.1962
$0.1981
$0.2103
b) Off-Peak Per
kWh
$0.0404
$0.0419
$0.0545
$0.0560
. . .
Section 6. That Section 26-466 of the Code of the City of Fort Collins is hereby
amended to read as follows:
Sec. 26-466. - General service, schedule GS.
. . .
(c) Monthly rate. The monthly rates for this schedule shall be the sum of the following
charges:
Description Unit Component
Charge
Billed
Charge
(including
PILOT)
(1) Payment in lieu of taxes (PILOT) and franchise.
A charge based on all component charges pursuant to this
Section
6 percent
(2) Fixed Charge
a. Single-phase, two-hundred-ampere
service
Per
account
$5.25 $9.05 $5.56 $9.59
b. Single-phase, above two-hundred-ampere
service
Per
account
$15.50
$19.30
$16.43
$20.46
c. Three-phase, two-hundred-ampere service Per
account
$8.00
$11.80
$8.48
$12.51
d. Three-phase, above two-hundred-ampere
service
Per
account
$18.96
$22.76
$20.10
$24.13
(3) Distribution facilities charge (added to
demand and energy charges below for
“Billed Charge” shown in (5))
Per
kWh
$0.0356
$0.0336
(4) Demand charge
a. Summer. For billings based on meter
readings in the months of June, July,
August, and September
Per kWh $0.0330
$0.0344
b. Non-summer. For billings based on meter Per kWh $0.0200
-12-
readings in the months of January through
May and October through December
$0.0210
c. The meter reading date shall generally
determine the summer season billing
months; however, no customer shall be
billed more than four (4) full billing cycles at
the summer rate
(5) Energy charge
a. Summer. For billings based on meter
readings in the months of June, July, August,
and September
Per kWh $0.0404
$0.0419
$0.1156
$0.1165
b. Non-summer. For billings based on meter
readings in the months of January through
May and October through December
Per kWh $0.0404
$0.0419
$0.1018
$0.1023
c. The meter reading date shall generally
determine the summer season billing
months; however, no customer shall be
billed more than four (4) full billing cycles at
the summer rate
(e) Excess capacity charge. The monthly capacity charge per kilowatt set forth in this
Subsection (e) may be added to the above charges for service to intermittent loads in accordance
with the provisions of the Electric Service Standards.
Unit Component
Charge
Billed Charge
(including PILOT)
Per kW $2.39 $2.44 $2.53 $2.58
. . .
(q) Net metering.
. . .
(5) The customer-generator's consumption of energy from the utility and production of
energy that flows into the utility's distribution system shall be measured on a monthly
basis. The energy from the utility consumed by the customer-generator shall be billed at
the applicable rate as outlined in Subsection (c) of this Section. The energy produced by
the customer-generator shall be credited to the customer monthly as follows:
Description Unit Component Credit
a. Energy credit for billings based on generation
during the months of June, July, August, and
September
Per kWh $0.0404 $0.0419
(r) Net metering—community solar projects.
-13-
. . .
(3) Both the customer's consumption of energy from the utility and interest in the
production of energy that flows into the utilities' distribution system shall be measured
on a monthly basis. The energy from Fort Collins Utilities consumed by the customer
shall be billed at the applicable seasonal tiered rate as outlined in Subsection (c) of this
Section. The energy produced by the customer's portion of the qualifying facility shall
be credited to the customer monthly as follows:
Description Unit Component
Credit
a. Energy and demand credit Per kWh $0.0404
$0.0419
. . .
Section 7. That Section 26-467 of the Code of the City of Fort Collins is hereby
amended to read as follows:
Sec. 26-467. - General service 25, schedule GS25.
. . .
(c) Monthly rate. The monthly rates for this schedule shall be the sum of the following
charges:
Description Unit Component
Charge
Billed
Charge
(including
PILOT)
1.Payment in lieu of taxes (PILOT) and franchise.
A charge based on all component charges pursuant to this
Section
6 percent
2. Fixed Charge
a. Single-phase, two-hundred-ampere service Per
account $5.54 $9.05 $5.87 $9.59
b. Single-phase, above two-hundred-ampere
service
Per
account
$16.33
$19.30
$17.31
$20.46
c. Three-phase, two-hundred-ampere service Per
account
$8.44
$11.80
$8.94
$12.51
d. Three-phase, above two-hundred-ampere
service
Per
account
$19.98
$22.76
$21.18
$24.13
3. Distribution facilities charge (applied to
energy charges in 5. below)
Per kWh $ 0.0286
$0.0277
4. Demand charge
a. Summer. For billings based on meter
readings in the months of June, July, August,
and September
Per kW $10.20
$10.60
$10.81
$11.24
-14-
b. Non-summer. For billings based on meter
readings in the months of January through
May and October through December
Per kW $5.75 $6.00 $6.10
$6.36
c. The meter reading date shall generally
determine the summer season billing months;
however, no customer shall be billed more
than four (4) full billing cycles at the summer
rate
5. Energy charge
a. Summer. For billings based on meter
readings in the months of June, July, August,
and September
Per kWh $0.0404
$0.0419
$0.0731
$0.0737
b. Non-summer. For billings based on meter
readings in the months of January through
May and October through December
Per kWh $0.0404
$0.0419
$0.0731
$0.0737
. . .
(e) Excess capacity charge. The monthly capacity charge kilowatt set forth in this Subsection
(e) may be added to the above charges for service to intermittent loads in accordance with the
provisions of the Electric Service Standards.
Unit Component
Charge
Billed Charge
(including
PILOT)
Per kW $2.39 $2.44 $2.53 $2.58
(f) Standby service charges. Standby service, if available, will be provided on an annual
contract basis at a level at least sufficient to meet probable service demand (in kilowatts) as
determined by the customer and approved by the utility according to the following:
(1) Monthly standby distribution charge
Description Unit Component
Charge
Billed
Charge
(including
PILOT)
Contracted standby service, this charge shall
be in lieu of the distribution facilities charge
Per kW $4.38 $4.47 $4.64
$4.74
For all metered kilowatts in excess of the
contracted amount
Per kW $13.15
$13.41
$13.94
$14.22
. . .
(r) Net metering.
. . .
-15-
(5) The customer-generator's consumption of energy from the utility and production of
energy that flows into the utility's distribution system shall be measured on a monthly
basis. The energy from the utility consumed by the customer-generator shall be billed at
the applicable rate as outlined in Subsection (c) of this Section. The energy produced by
the customer-generator shall be credited to the customer monthly as follows:
Description Unit Bill
Credit
a. Energy credit for billings based on generation during the
months of June, July, August, and September
Per
kWh
$0.0404
$0.0419
. . .
Section 8. That Section 26-468 of the Code of the City of Fort Collins is hereby
amended to read as follows:
Sec. 26-468. - General service 50, schedule GS50.
. . .
(c) Monthly rate. The monthly rates for this schedule shall be the sum of the following
charges:
Description Unit Component
Charge
Billed
Charge
(including
PILOT)
(1) Payment in lieu of taxes (PILOT) and franchise.
A charge based on all component charges pursuant to
this Section
6 percent
(2) Fixed Charge Per
account
$14.64
$24.16
$15.52
$25.61
(3) Coincident demand charge
a. Summer. For billings based on meter
readings in the months of June, July, August,
and September
Per kW $14.57
$15.00
$15.44
$15.90
b. Non-summer. For billings based on meter
readings in the months of January through
May and October through December
Per kW $11.56
$11.75
$12.25
$12.46
c. The meter reading date shall generally
determine the summer season billing months;
however, no customer shall be billed more
than four (4) full billing cycles at the summer
-16-
rate
(4) Distribution facilities charge Per kW $10.08
$10.03
$10.69
$10.63
(5) Energy charge
a. Summer. For billings based on meter
readings in the months of June, July, August,
and September
Per kWh $0.0404
$0.0419
$0.0428
$0.0444
b. Non-summer. For billings based on meter
readings in the months of January through
May and October through December
Per kWh $0.0404
$0.0419
$0.0428
$0.0444
(e) Excess capacity charge. The monthly capacity charge per kilowatt set forth in this
Subsection (e) may be added to the above charges for service to intermittent loads in
accordance with the provisions of the Electric Service Standards.
Unit Component
Charge
Billed Charge
(including
PILOT)
Per kW $2.39 $2.44 $2.53 $2.58
(f) Standby service charges. Standby service, if available, will be provided on an annual contract
basis at a level at least sufficient to meet probable service demand (in kilowatts) as
determined by the customer and approved by the utility according to the following:
(1) Standby distribution charge.
a. Monthly standby distribution charge shall be the sum of the following charges:
Description Unit Component
Charge
Billed
Charge
(including
PILOT)
Contracted standby service, this charge shall be
in lieu of the distribution facilities charge
Per kW $5.62 $5.73 $5.96
$6.08
For all metered kilowatts in excess of the
contracted amount
Per kW $16.40
$16.73
$17.38
$17.73
. . .
(g) Excess circuit charge. In the event a utility customer in this rate class desires excess circuit
capacity for the purpose of controlling the available electric capacity of a backup circuit
connection, this service, if available, will be provided on an annual contract basis at a level
at least sufficient to meet probable backup demand (in kilowatts) as determined by the
customer and approved by the utility according to the following:
-17-
(1) Monthly charge shall be the sum of the following charges:
Description Unit Component
Charge
Billed
Charge
(including
PILOT)
Contracted backup capacity per month Per
kW
$1.14 $1.16
$1.21
$1.23
Metered kilowatts in excess of the contracted
amount
Per
kW
$3.46 $3.53
$3.67
$3.74
. . .
(u) Net metering.
. . .
(5) The customer-generator's consumption of energy from the utility and production of
energy that flows into the utility's distribution system shall be measured on a monthly
basis. The energy from the utility consumed by the customer-generator shall be billed at
the applicable rate as outlined in Subsection (c) of this Section. The energy produced by
the customer-generator shall be credited to the customer monthly as follows:
Description Unit Bill
Credit
a. Energy credit for billings based on generation during the
months of June, July, August and September
Per kWh $0.0404
$0.0419
Section 9. That Section 26-469 of the Code of the City of Fort Collins is hereby
amended to read as follows:
Sec. 26-469. - General service 750, schedule GS750.
. . .
(c) Monthly rate. The monthly rates for this schedule shall be the sum of the following
charges:
Description Unit Component
Charge
Billed
Charge
(including
PILOT)
(1) Payment in lieu of taxes (PILOT) and franchise.
A charge based on all component charges pursuant to
6 percent
-18-
this Section
(2) Fixed Charge
Per
account
$28.75
$33.06
$30.48
$35.05
a. Additional charge for each additional
metering point
Per
account
$17.54
$20.17
$18.59
$21.38
(3) Coincident demand charge
a. Summer. For billings based on meter
readings in the months of June, July,
August, and September
Per kW
$13.55
$13.90
$14.36
$14.73
b. Non-summer. For billings based on
meter readings in the months of January
through May and October through
December
Per kW
$10.75
$10.90
$11.40
$11.55
c. The meter reading date shall generally
determine the summer season billing
months; however, no customer shall be
billed more than four (4) full billing cycles
at the summer rate
(4) Distribution facilities charge
a. First seven hundred fifty (750) kilowatts Per kW
$11.08
$11.75
b. All additional kilowatts Per kW $6.55 $6.94
(5) Energy charge
a. Summer. For billings based on meter
readings in the months of June, July,
August, and September
Per
kWh
$0.0398
$0.0413
$0.0422
$0.0437
b. Non-summer. For billings based on
meter readings in the months of January
through May and October through
December
Per
kWh
$0.0398
$0.0413
$0.0422
$0.0437
. . .
(e) Excess capacity charge. The monthly capacity charge per kilowatt set forth in this
Subsection (e) may be added to the above charges for service to intermittent loads in
accordance with the provisions of the Electric Service Standards.
Unit Component
Charge
Billed
Charge
(including
PILOT)
Per kW $2.39 $2.44 $2.53
$2.58
-19-
(f) Standby service charges. Standby service, if available, will be provided on an annual
contract basis at a level at least sufficient to meet probable service demand (in kilowatts) as
determined by the customer and approved by the utility according to the following:
(1) Standby distribution charge.
(a) Monthly standby distribution charges shall be paid in the following amounts
Description Unit Component
Charge
Billed
Charge
(including
PILOT)
Contracted standby service, this charge shall be
in lieu of the distribution facilities charge.
Per kW $3.88 $3.96 $4.12
$4.20
For all metered kilowatts in excess of the
contracted amount
Per kW $11.68
$11.91
$12.38
$12.63
. . .
(g) Excess circuit charge. In the event a utility customer in this rate class desires excess circuit
capacity for the purpose of controlling the available electric capacity of a backup circuit
connection, this service, if available, will be provided on an annual contract basis at a level at
least sufficient to meet probable backup demand (in kilowatts) as determined by the customer
and approved by the utility at the following rates:
(1) Monthly charge.
Description Unit Component
Charge
Billed
Charge
(including
PILOT)
Contracted backup capacity per month Per kW $0.80 $0.82 $0.85
$0.86
Metered kilowatts in excess of the contracted
amount Per kW $2.40 $2.45 $2.54
$2.59
. . .
(v) Net metering.
. . .
(5) The customer-generator's consumption of energy from the utility and production of
energy that flows into the utility's distribution system shall be measured on a monthly
basis. The energy consumed from the utility by the customer-generator shall be billed at
-20-
the applicable rate as outlined in Subsection (c) of this Section. The energy produced by
the customer-generator shall be credited to the customer monthly as follows:
Description Unit Bill Credit
a. Energy credit for billings based on generation during the
months of June, July, August, and September
Per
kWh
$0.0398
$0.0413
Section 10. That Section 26-470 of the Code of the City of Fort Collins is hereby
amended to read as follows:
Sec. 26-470. - Substation service, schedule SS.
. . .
(c) Monthly rate. The monthly rates for this schedule shall be the sum of the following charges:
Description Unit Component
Charge
Billed
Charge
(including
PILOT)
(1) Payment in lieu of taxes (PILOT) and franchise.
A charge based on all component charges pursuant to
this Section.
6 percent
(2) Fixed Charge Per
account
$70.42
$80.98
$74.65
$85.84
(3) Coincident demand charge
a. Summer. For billings based on meter
readings in the months of June, July, August,
and September
Per kW $13.35
$13.60
$14.15
$14.42
b. Non-summer. For billings based on meter
readings in the months of January through
May and October through December
Per kW $10.59
$10.85
$11.23
$11.50
c. The meter reading date shall generally
determine the summer season billing months;
however, no customer shall be billed more
than four (4) full billing cycles at the summer
rate
(4) Distribution facilities charge Per kW $5.71 $6.05
(5) Energy charge
a. Summer. For billings based on meter
readings in the months of June, July, August,
and September
Per
kWh
$0.0392
$0.0404
$0.0416
$0.0428
b. Non-summer. For billings based on meter
readings in the months of January through
May and October through December
Per
kWh
$0.0392
$0.0404
$0.0416
$0.0428
-21-
(e) Standby service charges. Standby service, if available, will be provided on an annual contract
basis at a level at least sufficient to meet probable service demand (in kilowatts) as
determined by the customer and approved by the utility at the following rates:
(1) Standby distribution charge.
a. Monthly standby distribution charge:
Description Unit Component
Charge
Billed
Charge
(including
PILOT)
Contracted standby service, this charge
shall be in lieu of the distribution facilities
charge.
Per kW $2.89 $2.95 $3.07
$3.12
For all metered kilowatts in excess of the
contracted amount
Per kW $8.68 $8.85 $9.20
$9.38
. . .
(s) Net metering.
. . .
(5) The customer-generator's consumption of energy from the utility and production of
energy that flows into the utility's distribution system shall be measured on a monthly
basis. The energy consumed from the utility by the customer-generator shall be billed at
the applicable rate as outlined in Subsection (c) of this Section. The energy produced by
the customer-generator shall be credited to the customer monthly as follows:
Description Unit Bill
Credit
a. Energy credit for billings based on generation during the months
of June, July, August, and September
Per
kWh
$0.0392
$0.0404
Section 11. That Section 26-471 of the Code of the City of Fort Collins is hereby
amended to read as follows:
Sec. 26-471. - Special area floodlighting, schedule FL.
. . .
(b) Monthly rate. The monthly rates (including a six (6) percent charge in lieu of taxes and
franchise) are as follows:
(1) Charge per lamp, mercury vapor:
-22-
Description Component
Charge
Billed Charge
(including
PILOT)
a. One hundred seventy-five (175) watt $19.23
$21.42
$20.38
$22.71
b. Two hundred fifty (250) watt $22.65
$28.36
$24.01
$30.06
c. Four hundred (400) watt $29.68
$42.17
$31.47
$44.70
(2) Charge per lamp, high-pressure sodium:
Description Component
Charge
Billed Charge
(including
PILOT)
a. Seventy (70) watt $8.13 $13.99 $8.61 $14.83
b. One hundred (100) watt $11.49
$14.96
$12.18
$15.86
c. One hundred fifty (150) watt $18.18
$22.50
$19.27
$23.85
d. Two hundred fifty (250) watt $23.18
$32.58
$24.57
$34.53
e. Four hundred (400) watt $30.62
$45.98
$32.46
$48.74
(3) Charge per lamp, LED:
Description Component
Charge
Billed Charge
(including
PILOT)
a. Fifty-four (54) watt (Cobra) $7.97 $8.05 $8.45 $8.53
b. Seventy-two (72) watt (Cobra) $9.27 $9.57 $9.83 $10.14
c. Eighty (80) watt (Cobra) $9.58 $10.13 $10.16
$10.74
d. Eighty-eight (88) watt (Cobra) $10.15
$10.77
$10.76
$11.42
e. Sixty-five (65) watt (Post Top) $12.47
$12.58
$13.21
$13.33
. . .
Section 12. That Section 26-472 of the Code of the City of Fort Collins is hereby
amended to read as follows:
Sec. 26-472. - Traffic signal service, schedule T.
-23-
. . .
(c) Monthly rate. The monthly rates (including a six (6) percent charge in lieu of taxes and
franchise) shall be the sum of the following charges:
Description Unit Component
Charge
Billed
Charge
(including
PILOT)
(1) Fixed charge Per
account
$83.08
$84.74
$88.06
$89.83
(2) Energy charge Per kWh $0.0773
$0.0788
$0.0819
$0.0836
(3) Service extensions and signal
installations made by the utility shall be
paid for by the City General Fund, subject
to material and installation costs at the time
of installation
Section 13. That the modifications set forth above shall be effective for all energy
consumption on or after January 1, 2022.
Introduced, considered favorably on first reading, and ordered published this 2nd day of
November, A.D. 2021, and to be presented for final passage on the 16th day of November, A.D.
2021.
______________________________
Mayor
ATTEST:
_____________________________
Interim City Clerk
Passed and adopted on final reading on this 16th day of November, A.D. 2021.
______________________________
Mayor
ATTEST:
-24-
_____________________________
Interim City Clerk
-1-
ORDINANCE NO. 147, 2021
OF THE COUNCIL OF THE CITY OF FORT COLLINS
AMENDING CHAPTER 26 OF THE CODE OF THE CITY OF FORT
COLLINS REGARDING CALCULATION AND COLLECTION OF
DEVELOPMENT FEES IMPOSED FOR THE CONSTRUCTION
OF NEW OR MODIFIED ELECTRIC SERVICE CONNECTIONS
WHEREAS, the City Council is empowered and directed by Article XII, Section 6, of the
City Charter to fix, establish, maintain and provide for the collection of such rates, fees or
charges for utility services furnished by the City as will produce revenues sufficient to pay the
costs, expenses and other obligations of the electric utility, as set forth therein; and
WHEREAS, pursuant to City Code Sections 26-473 through 26-475, the City imposes
development fees for new or modified electric service connections, including an Electric
Capacity Fee (“ECF”) and a Building Site Charge (“BSC”); and
WHEREAS, the ECF is a one-time charge designed to recover the initial cost of adding
new development to the electric system, and the BSC is designed to recover actual time and
materials costs associated with building on site electric facilities at the specific development; and
WHEREAS, the ECF and BSC together represent the total electric plant investment fee
(PIF) for new development; and
WHEREAS, Fort Collins Utilities staff uses an approved cost allocation methodology to
calculate ECF and BSC to assign costs based on actual system value, i.e. the “buy-in” approach
also used to calculate service connection fees for water and wastewater services; and
WHEREAS, the values and costs used in applying this cost allocation methodology are
updated on a two-year cycle; and
WHEREAS, the Energy Board considered the proposed 2022 ECF and BSC inflation-
only-based rate adjustments at its meeting on September 9, 2021, and recommended approval of
the adjustments; and
WHEREAS, based on the foregoing, it is the desire of the City Council to amend Chapter
26 of the City Code to update the values and costs applied in calculating ECF and BSC for new
or modified electric service connections.
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF
FORT COLLINS as follows:
Section 1. That the City Council hereby makes and adopts the determinations and
findings contained in the recitals set forth above.
Section 2. That Sections 26-474 (b) and (d) of the Code of the City of Fort Collins
are hereby amended to read as follows:
-2-
Sec. 26-474. - Residential electric development fees and charges.
. . .
(b) The ECF shall be the total of the dwelling unit charge and systems modification
charge, to be determined as follows:
(1) The dwelling unit charge shall be as follows:
a. For a detached single-family panel size with one hundred fifty (150) amp
service (nonelectric heat), per dwelling unit $1,610
$1,666
b. For a detached single-family panel size with two hundred (200) amp service $2,026
$2,097
c. For a detached single-family with electric heat, per dwelling unit $2,664
$2,757
d. For a duplex or multi-family panel size with one hundred fifty (150) amp
service (non-electric heat), per dwelling unit $1,423
$1,473
e. For a duplex multi-family panel size with two hundred (200) amp service or
with one hundred fifty (150) amp service with electric heat, per dwelling unit $2,172
$2,248
. . .
(d) A Building Site Charge (“BSC”) for any new or modified residential service shall
consist of the total of the applicable charges as described in this Subsection (d), and shall
be paid as specified herein.
. . .
(2) When any new or modified residential service requires installation by the
Utility of secondary service the BSC shall include a secondary service charge
(SSC), and shall be paid at the time of building permit and based upon the current
rates as of the time of issuance of the building permit. The SSC for detached
single-family and duplex residences shall be the total of the secondary service
charges, determined as follows:
-3-
a. The secondary service charge shall be as follows:
Secondary
Service Size
Charge
(up to 65 feet)
Plus Per-Foot
Charge for
Each Foot Over 65
4/0 service $1,364.00$2,030.00 $10.12$13.51/Foot
4/0 Mobile Home Service $1,060.00$1,625.00 N/A
. . .
Section 3. That Section 26-475 (b) and (d) of the Code of the City of Fort Collins is
hereby amended to read as follows:
Sec. 26-475. Nonresidential electric development fees and charges.
. . .
(b) The ECF shall be the total of the kVA service charge and systems modification
charge, to be determined as follows:
(1) The kVA service charge shall be determined as follows.
a. For customer electric loads served by the utility, the kVA service
charge shall be calculated as follows:
ECF shall be calculated as follows:
secondary metered services $/kW = 351.52363.82 + 22.4723.26 x ln(kW)
primary metered services $/kW = 233.85242.04+ 6.116.32 x ln(kW),
Where ln is the natural logarithm
kW is calculated as follows:
three phase services kW = A x V x SQRT(3) x PF x 0.3/1000
single phase services kW = A x V x PF x 0.3/1000
Where A is the requested amperage, calculated individually and aggregated
under subsection (a) above. V is requested line to line voltage. PF is the power
factor, which is assumed to be 0.9.
. . .
(d) A Building Site Charge (“BSC”) for extending primary circuitry to the
transformer for any new or modified nonresidential service shall be invoiced and paid in
-4-
the same manner and at the same time as the ECF is invoiced and paid pursuant to § 26-
475(a). The BSC shall be the total of the primary circuit charge, transformer installation
charge and any additional charges, determined as follows:
(1) The primary circuit charge for service from the utility source to the
transformer shall be as follows:
a. For single-phase service, per foot of primary circuit $18.65
$21.71
b. For three-phase service, per foot of primary circuit $27.81
$35.10
(2) The transformer installation charge shall be as follows:
a. For single-phase service, per transformer $1,653.30
$1,861.06
b. For three-phase service, per transformer $3,230.37
$3,711.72
. . .
Section 4. That the modifications set forth above shall be effective for all fees paid
on or after January 1, 2022.
Introduced, considered favorably on first reading, and ordered published this 2nd day of
November, A.D. 2021, and to be presented for final passage on the 16th day of November, A.D.
2021.
__________________________________
Mayor
ATTEST:
_______________________________
Interim City Clerk
-5-
Passed and adopted on final reading on the 16th day of November, A.D. 2021.
__________________________________
Mayor
ATTEST:
_______________________________
Interim City Clerk
-1-
ORDINANCE NO. 148, 2021
OF THE COUNCIL OF THE CITY OF FORT COLLINS
AMENDING CHAPTER 26 OF THE CODE OF THE CITY OF FORT
COLLINS TO REVISE SEWER PLANT INVESTMENT FEES
WHEREAS, the City Council is empowered and directed by Article XII, Section 6 of the
Charter of the City of Fort Collins, to by ordinance from time to time fix, establish, maintain, and
provide for the collection of such rates, fees or charges for water and for other utility services
furnished by the City as will produce revenues sufficient to pay the costs, expenses, and other
obligations as set forth therein; and
WHEREAS, Article IV, Chapter 26 of the City Code establishes and sets forth the
wastewater utility as a utility service furnished by and an enterprise of the City; and
WHEREAS, City Code Sections 26-283 and 26-284 provide for sewer plant investment
fees (“SPIFs”) to be based on and used for growth-related capital expansion costs of wastewater
collection, transmission, treatment, and administrative facilities that are reasonably related to the
overall costs of and required in providing wastewater services to serve new development; and
WHEREAS, City Code Section 26-283 further requires that the City Manager annually
review the parameters and rates of the SPIFs and also requires that the City Manager present
such fees to the City Council for approval no less frequently than biennially; and
WHEREAS, the City Manager and City staff have also recommended to the City Council
adjustment of the SPIFs; and
WHEREAS, the Water Commission considered the proposed SPIFs adjustments at its
meeting on October 21, 2021, and recommended approval of the proposed adjustments; and
WHEREAS, based on the foregoing, City Council desires to amend Chapter 26 of the
City Code to adjust the PIFs as set forth herein.
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF
FORT COLLINS as follows:
Section 1. That the City Council hereby makes any and all determinations and
findings contained in the recitals set forth above.
Section 2. That Section 26-284 of the Code of the City of Fort Collins is hereby
amended to read as follows:
Sec. 26-284. - Sewer plant investment fees and surcharges established.
(a) The schedule of sewer plant investment fees, subject to the exceptions and
additional requirements provided in this Section, is as follows:
-2-
Category SPIF
A Single-family Per
dwelling $3,698.00 $3,824.00
B and C Duplex and Multi-family
Per each
dwelling
unit or
mobile
home space
$2,668.00 $2,759.00
D, E, F Non-residential and Industrial
Water meter size (inches) Fee Fee
¾ $7,941.00 $8,211.00
1 $17,706.00 $18,308.00
1½ $33,321.00 $34,454.00
2 $69,134.00 $71,485.00
3 and above
Calculated on an individual basis
based on peak wastewater flow
(determined in the manner set forth
hereinafter) but not less than the
charge for a two-inch meter
G User outside Same as equivalent category, plus any
special sanitation district fees
H Special Determined pursuant to Subsection
(d) of this Section
. . .
(d) The amount of the plant investment fee and surcharge for each nonresidential
surcharged user, users in Category H and any user that is expected to generate greater than
its proportionate share of peak day flow at the treatment plant for the applicable category
(including both contributed wastewater volume and volume related to infiltration and
inflow), shall be calculated utilizing the following formula:
SPIF = Site Flow × [Flow$ + (BOD × BOD$) + (TSS × TSS$)] + I&I Flow × [Flow$ + (200 mg/l
× BOD$) + (250 mg/l × TSS$)]
-3-
Where:
SPIF =
Plant investment fee for Category H users and users
discharging wastewater with average concentrations of
BOD and/or TSS which exceed those average
concentrations which are set forth in § 26-282(b) under
Category E-34
Site Flow =
The user's proportionate share of peak day flow at the
treatment plant based on site flow discharge from user's
site
I&I Flow =
That proportionate share of peak day flow due to
infiltration and inflow as allocated to user's site flow
discharge. I&I Flow is calculated based on Site Flow
multiplied by
46.5%
Flow$ = Unit cost of facilities attributable to treating wastewater
flow Per Gallon $10.10
$10.44
BOD =
Average BOD concentration for user category or
measured BOD concentration for the user as
determined in accordance with Subsection (c) of this
Section, but not less than 200 mg/l
BOD$ = Unit cost of facilities attributable to treating BOD Per mg/l $0.0151
$0.0156
TSS =
Average TSS concentration for user category or
measured TSS concentration for the user as determined
in accordance with Subsection (c) of this Section, but
not less than 250 mg/l
TSS$ = Unit cost of facilities attributable to treating TSS Per mg/l $0.0121
$0.0125
. . .
Section 4. That the modifications set forth above shall be effective for all fees paid
on or after January 1, 2022.
-4-
Introduced, considered favorably on first reading, and ordered published this 2nd day of
November, A.D. 2021, and to be presented for final passage on the 16th day of November, A.D.
2021.
__________________________________
Mayor
ATTEST:
_______________________________
Interim City Clerk
Passed and adopted on final reading on the 16th day of November, A.D. 2021.
__________________________________
Mayor
ATTEST:
_______________________________
Interim City Clerk
-1-
ORDINANCE NO. 149, 2021
OF THE COUNCIL OF THE CITY OF FORT COLLINS
AMENDING CHAPTER 26 OF THE CODE OF THE CITY OF FORT
COLLINS TO REVISE THE STORMWATER PLANT INVESTMENT FEES
WHEREAS, the City Council is empowered and directed by Article XII, Section 6 of the
Charter of the City of Fort Collins, to by ordinance from time to time fix, establish, maintain, and
provide for the collection of such rates, fees or charges for water and for other utility services
furnished by the City as will produce revenues sufficient to pay the costs, expenses, and other
obligations as set forth therein; and
WHEREAS, Article VII, Chapter 26 of the City Code establishes the stormwater utility
as a utility service furnished by and an enterprise of the City; and
WHEREAS, City Council has adopted stormwater basin and City-wide master plans
recommending stormwater facilities necessary to provide for proper drainage and control of
flood and surface waters within the City; and
WHEREAS, in 1998, City Council adopted ordinance No. 168, 1998, determining that all
lands within the City benefit by the installation of such stormwater facilities; and
WHEREAS, existing stormwater rate payers have paid for the design, right of way, and
construction of stormwater facilities identified in the drainage basin master plans that will benefit
and be utilized by new development; and
WHEREAS, City Council has determined that new development should pay its
proportionate share of the costs of capital stormwater facilities in existence at the time of
development in the form of a stormwater plant investment fee as established by City Code
Section 26-512 (“Stormwater PIF”); and
WHEREAS, City Code Section 26-511 requires that the City Manager review the rates
and parameters for the Stormwater PIF annually and present them to City Council for approval
no less frequently than biennially; and
WHEREAS, the City Manager and City staff have also recommended to the City Council
adjustment of the Stormwater PIF as set forth herein; and
WHEREAS, the Water Commission considered the proposed Stormwater PIF
adjustments for at its meeting on October 21, 2021, and recommended approval of the proposed
adjustments; and
WHEREAS, based on the foregoing, City Council desires to amend Chapter 26 of the
City Code to adjust the Stormwater PIF as set forth herein.
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF
FORT COLLINS as follows:
-2-
Section 1. That the City Council hereby makes any and all determinations and
findings contained in the recitals set forth above.
Section 2. That Section 26-512 of the Code of the City of Fort Collins is hereby
amended to read as follows:
Sec. 26-512. - Stormwater plant investment fees established.
. . .
(2) Plant investment fee base rate. The stormwater plant investment fee base rate is
hereby established as follows:
Per gross acre of area $9,730 $10,109
. . .
Section 3. That the modifications set forth above shall be effective for all fees paid
on or after January 1, 2022.
Introduced, considered favorably on first reading, and ordered published this 2nd day of
November, A.D. 2021, and to be presented for final passage on the 16th day of November, A.D.
2021.
__________________________________
Mayor
ATTEST:
_______________________________
Interim City Clerk
Passed and adopted on final reading on the 16th day of November, A.D. 2021.
__________________________________
Mayor
ATTEST:
_______________________________
Interim City Clerk
-1-
ORDINANCE NO. 150, 2021
OF THE COUNCIL OF THE CITY OF FORT COLLINS
AMENDING CHAPTER 26 OF THE CODE OF THE CITY OF FORT
COLLINS TO REVISE WATER PLANT INVESTMENT FEES
WHEREAS, the City Council is empowered and directed by Article XII, Section 6 of the
Charter of the City of Fort Collins, to by ordinance from time to time fix, establish, maintain, and
provide for the collection of such rates, fees or charges for water and for other utility services
furnished by the City as will produce revenues sufficient to pay the costs, expenses, and other
obligations as set forth therein; and
WHEREAS, Article III, Chapter 26 of the City Code establishes and sets forth the water
utility as a utility service furnished by and an enterprise of the City; and
WHEREAS, City Code Sections 26-120 and 26-128 provide for water plant investment
fees (“WPIFs”) to be based on and used for growth-related capital expansion costs of water
supply, storage, transmission, treatment and distribution, and administrative facilities that are
reasonably related to the overall costs of and required in providing water services to serve new
development; and
WHEREAS, City Code Section 26-120 further requires that the City Manager annually
review the parameters and rates of the WPIFs and also requires that the City Manager present
such fees to the City Council for approval no less frequently than biennially; and
WHEREAS, the City Manager and City staff have also recommended to the City Council
adjustment of the WPIFs, as set forth herein; and
WHEREAS, the Water Commission considered the proposed WPIFs adjustments at its
meeting on October 21, 2021, and recommended approval of the proposed adjustments; and
WHEREAS, based on the foregoing, City Council desires to amend Chapter 26 of the
City Code to adjust the WPIFs as set forth herein.
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF
FORT COLLINS as follows:
Section 1. That the City Council hereby makes any and all determinations and
findings contained in the recitals set forth above.
Section 2. That Section 26-128 of the Code of the City of Fort Collins is hereby
amended to read as follows:
Sec. 26-128. Schedule C, water plant investment fees.
The water plant investment fee prescribed in § 26-120 shall be payable by users both
inside and outside of the City, as follows:
-2-
(1) Single-family residential buildings.
For a single-family residential lot greater than one-half (½) acre in
size, the lot size shall be deemed to be one-half (½) acre for the
purpose of this fee calculation. For each additional tap or meters larger
than three-fourths (¾) inch, the nonresidential rate shall apply.
a. For the first three-fourths-inch water tap or meter $752.00 $781.00
b. For the first one-inch water tap or meter to accommodate
residential fire suppression systems based upon the criteria established
in the International Building Code as adopted and amended pursuant to
Chapter 5 of this Code.
$1,274.00
$1,322.00
c. Plus, for each square foot of lot area $0.40 $0.42
(2) Residential buildings of two (2) or more dwelling units (including
fraternity and sorority multi-family housing)
The fee will provide for one (1) tap per residential building and an
adequate number of additional taps to serve common irrigable areas, if
any. The number and size of taps shall be determined by the Utilities
Executive Director based upon the criteria established in the Uniform
Plumbing Code as amended pursuant to Chapter 5 of this Code.
a. For each residential building unit $567.00 $589.00
(3) Mobile home parks
The size of the tap shall be determined by the Utilities Executive
Director based upon the criteria established in the Uniform Plumbing
Code as amended pursuant to Chapter 5 of this Code.
a. For each residential building unit $567.00 $589.00
b. Plus, for each square foot of lot area to be irrigated with the tap
serving the residential building unit
$0.30 $0.31
(4) Hotels, fraternity and sorority dormitory housing, and similar uses.
The nonresidential rate shall apply.
(5) Nonresidential service
a. Service to all nonresidential taps other than irrigation-only taps
in subsection b shall be charged according to the size of the meter
pursuant to the following schedule:
Meter Size (inches) Non-
residential
Non-Irrigation-
Only
WPIF
¾ $4,416.00
$4,584.00
1 $11,072.00
$11,493.00
1½ $20,405.00
$21,180.00
2 $40,100.00
$41,624.00
-3-
The fee for such meters larger than two (2) inches shall be calculated
by multiplying the estimated peak daily demand, as determined by the
Utilities Executive Director, by the following charge per gallon, but
shall not be less than the charge for a two-inch meter.
$5.39 $5.59
b. Service to all irrigation-only taps shall be charged according to
the size of the meter pursuant to the following schedule:
Meter Size (inches) Non-
residential
Irrigation
Only
Plant WPIF
¾ $14,317.00
$14,861.00
1 $32,716.00
$33,959.00
1½ $81,367.00
$84,459.00
2 $124,355.00
$129,080.00
The fee for meters larger than two (2) inches shall be calculated by
multiplying the estimated peak daily demand approved by the Utilities
Executive Director by the following charge per gallon, but shall not be
less than the charge for a two-inch meter.
$5.39 $5.59
. . .
Section 3. That the modifications set forth above shall be effective for all fees paid
on or after January 1, 2022.
Introduced, considered favorably on first reading, and ordered published this 2nd day of
November, A.D. 2021, and to be presented for final passage on the 16th day of November, A.D.
2021.
__________________________________
Mayor
ATTEST:
_______________________________
Interim City Clerk
-4-
Passed and adopted on final reading on the 16th day of November, A.D. 2021.
__________________________________
Mayor
ATTEST:
_______________________________
Interim City Clerk
-1-
ORDINANCE NO. 151, 2021
OF THE COUNCIL OF THE CITY OF FORT COLLINS
AMENDING CHAPTER 26 OF THE CODE OF THE CITY OF FORT
COLLINS TO REVISE MISCELLANEOUS WATER FEES AND CHARGES, INCLUDING
THE WATER SUPPLY REQUIREMENTS FEE
WHEREAS, the City Council is empowered and directed by Article XII, Section 6 of the
Charter of the City of Fort Collins, to by ordinance from time to time fix, establish, maintain, and
provide for the collection of such rates, fees or charges for water and for other utility services
furnished by the City as will produce revenues sufficient to pay the costs, expenses, and other
obligations as set forth therein; and
WHEREAS, the City owns and operates a water utility that provides treated water service
to customers with its service area; and
WHEREAS, through various water supply furnishing or development programs, the City
has historically required that persons desiring new or increased water service from the water
utility, among other things, furnish or otherwise provide to the City certain rights to use water or
payments of cash-in-lieu thereof in order to offset the impacts of the requested water service; and
WHEREAS, such requirements are currently set forth in Sections 26-129 and 26-146
through 26-150 of the Code of the City of Fort Collins as the Water Supply Requirements
(“WSR”), which, as of January 1, 2022, can be met with City-issued water certificates and
credits or a cash payment (“WSR fee”); and
WHEREAS, the WSR fee (and its predecessor, the cash-in-lieu rate) are and have
historically been used as the basis to calculate the fees for fire hydrants and connections under
City Code Subsection 26-120(e) and the excess water use surcharge rate under City Code Section
26-149(f); and
WHEREAS, the Water Commission considered the proposed adjustments to the WSR fee
at its meeting on October 21, 2021 and recommended approval of the proposed adjustments; and
WHEREAS, City staff has completed a review of the WSR and the WSR fee and has
determined that an increase in the WSR fee, the related fees for fire hydrants and connections
under City Code Subsection 26-120(e), and the related excess water use surcharge rate are
necessary to ensure that, among other things, the impacts of new and increased water service are
offset and that the water utility has sufficient water supplies and infrastructure to serve customers
of the water utility with an adequate level of service.
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF
FORT COLLINS as follows:
Section 1. That the City Council hereby makes any and all determinations and
findings contained in the recitals set forth above.
-2-
Section 2. That Section 26-129 of the Code of the City of Fort Collins is hereby
amended to read as follows:
Sec. 26-129. Schedule D, miscellaneous fees and charges.
The following fees and service charges shall be paid by water users, whether inside or outside
the City limits:
(a) Connection fees and service charges shall be as set forth in Subsection 26-712(b).
(b) Fees and charges and fire hydrants and connections under Subsection 26-120(e) shall
be as follows:
(1) For installation of meter Per meter $43.00
(2) For removal of meter Per meter $43.00
(3) For daily rental for meter and fittings Per meter $8.60
(4) For water service Per 1,000 gallons $13.76 $20.04
A deposit may be required in the amount of the
charges for the anticipated water usage and
rental.
(c) The fees and requirements for water supply shall be as follows:
(1) To satisfy Water Supply Requirement
(WSR) with cash payments
Per
325,851 gallons
of WSR
$42,518.40
$68,200.00
(2) Excess water use surcharge assessed on
nonresidential users when water use is in excess
of the applicable annual allotment
Per 1,000 gallons $10.39 $16.67
(3) The annual water allotment, based on the minimum WSR shall be
as follows:
Meter Size (inches)
Annual
Allotment
(gallons/
year)
¾ 293,270
1 739,680
1½ 1,538,020
2 2,577,480
Above 2 325,851
gallons per
acre foot of
WSR
. . .
Section 3. That the modifications above to Subsections 26-129(b)(4) and 26-
129(c)(2) shall be effective for use on or after January 1, 2022.
Section 4. That the modifications above to Subsection 26-129(c)(1) shall be effective
for all fees paid on or after January 1, 2022.
-3-
Introduced, considered favorably on first reading, and ordered published this 2nd day of
November, A.D. 2021, and to be presented for final passage on the 16th day of November, A.D.
2021.
__________________________________
Mayor
ATTEST:
_______________________________
Interim City Clerk
Passed and adopted on final reading on the 16th day of November, A.D. 2021.
__________________________________
Mayor
ATTEST:
_______________________________
Interim City Clerk