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HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 11/18/2003 - ITEMS RELATING TO UTILITY RATES AND CHARGES FOR 20 ITEM NUMBER: 23 A-E AGENDA ITEM SUMMARY DATE: November 18, 2003 FORT COLLINS CITY COUNCIL STAFF: WendyWilliams Bill Bray/Ellen Switzer SUBJECT Items Relating to Utility Rates and Charges for 2004. RECOMMENDATION Staff recommends adoption of the Ordinances on Second Reading. EXECUTIVE SUMMARY A. Second Reading of Ordinance No. 151,2003,Amending Chapter 26,Article XII,of the Code of the City Relating to Utility Connection Fees and Miscellaneous Charges. B. Second Reading of Ordinance No. 152, 2003,Amending Chapter 26,Article III,Division 4 of the Code of the City Relating to User Fees and Charges for Water. C. Second Reading of Ordinance No. 153, 2003, Amending Chapter 26, Article IV, Division 4 of the Code of the City Relating to Wastewater Fees. D. Second Reading of Ordinance No. 154, 2003, Amending Chapter 26, Article VI, Division 4 of the Code of the City Relating to Electric Rates and Charges. E. Second Reading of Ordinance No. 155, 2003, Amending Chapter 26, Article VII,Division 2 of the Code of the City Relating to Stormwater Fees. These ordinances, which were unanimously adopted on First Reading on November 4, 2003, increase the annual Light and Power Fund Revenues by 5.3%,Wastewater Fund operating revenues by 5%, and Storm Drainage Fund operating revenues are projected to increase 10%. There are no changes to operating revenues in the Water Fund. ORDINANCE NO. 151, 2003 OF THE COUNCIL OF THE CITY OF FORT COLLINS AMENDING CHAPTER 26, ARTICLE XII OF THE CODE OF THE CITY OF FORT COLLINS RELATING TO UTILITY CONNECTION FEES AND MISCELLANEOUS CHARGES WHEREAS, the City Council is empowered and directed by Article XII, Section 6, of the Charter of the City of Fort Collins, Colorado, to by ordinance from time to time 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 such utility, as set forth therein; and WHEREAS, with respect to each of the four City utilities, water, wastewater, electric and stormwater, the City Code requires the City Manager to analyze the operating and financial records of said utilities during each calendar year and recommend to the City Council the rates, fees and charges to be in effect for the following year; and WHEREAS, the City Manager has recommended to the City Council that the following billing and account related utility fees and charges be put into effect for the billing year beginning January 1, 2004; and WHEREAS, the City Manager has recommended to the City Council that these fees and charges be set out in Article XII of Chapter 26. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows: Section 1. That the title of Article XII of Chapter 26 of the Code of the City of Fort Collins is hereby changed from 'Billing Procedure" to "Utility Accounts, Billing and Collections". Section 2. That title of Section 26-712 of the Code of the City of Fort Collins is hereby amended to read as follows: Sec. 26-712. Utility bill and account charges authorized; procedures. Section 3. That Section 26-712 of the Code of the City of Fort Collins is hereby amended by the addition of a new subparagraph (b) to read as follows, with the existing subparagraphs (b) and (c) to be relettered as (c) and (d) respectively: (b) The following account and miscellaneous fees and charges shall apply to all city utility customers receiving service pursuant to the terms of Chapter 26, whether within or outside of the corporate limits of the city, except as otherwise expressly stated: Service connection fee for account with one or more metered services (including all non-metered services for the same account). $19.65 Customer initiated rate change (after 90 days of new service). $19.65 Service connection fee for account with only non-metered services (stormwater, wastewater, wind, flat commercial electric, sprinkler clocks, cable towers, and floodlights). $10.00 Service fee to reinstate an account to the owner/property manager between tenants. $10.00 Turn-off notice fee. $ 7.00 Reconnect fee per service for water or electric following disconnection for delinquency. $20.00 After hours reconnect - Water (after 5:00 pm weekdays or weekend/holiday) $46.00 After hours reconnect - Electric (after 5:00 pm weekdays or weekend/holiday) $55.45 Return item fee (check, electronic fund transfer, credit card, etc.) $15.00 Owner requested repair disconnect fee, per trip. $20.00 Research/ document fee per hour. $20.00 Other miscellaneous charges will be based on direct cost plus 15% indirect costs. Section 4. That the amendments to Chapter 26 of the City Code contained herein shall go into effect on January 1, 2004. Introduced, considered favorably on first reading, and ordered published this 4th day of November, A.D. 2003, and to be presented for final passage on the 18th day of November, A.D. 2003. Mayor ATTEST: City Clerk ORDINANCE NO. 152, 2003 OF THE COUNCIL OF THE CITY OF FORT COLLINS AMENDING CHAPTER 26, ARTICLE III,DIVISION 4 OF THE CODE OF THE CITY OF FORT COLLINS RELATING TO USER RATES AND CHARGES FOR WATER WHEREAS, the City Council is empowered and directed by Article XII, Section 6, of the Charter of the City of Fort Collins, Colorado, to by ordinance from time to time 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 water utility, as set forth therein; and WHEREAS, Section 26-118 of the Code of the City of Fort Collins, requires that the City Manager analyze the operating and financial records of the water utility during each calendar year and recommend to the City Council the user rate fees to be in effect for the following year; and WHEREAS, the City Council will be addressing potential changes to the water rate at a December 9,2003, study session after which the City Manager may recommend to the City Council that the water fees and charges be adjusted prior to the Spring of 2004; and WHEREAS, the City Manager has recommended that the Council adopt the minor housekeeping adjustments set forth herein beginning January 1, 2004, regardless of what future adjustments may be recommended. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows: Section 1. That Section 26-118(b) of the Code of the City of Fort Collins is hereby amended to read as follows: Sec. 26-118. Determination of user rates. (b) The rate categories for water users and the basis for determination of monthly charges for each category are as follows: (1) Metered water use. Charges for metered water service consist of a monthly service charge, which varies with the number of dwelling units for residential customers and the size of the meter for nonresidential customers, and a quantity charge per thousand gallons of water use. For those customers served by more than one(1)meter, the appropriate service charge shall be applied to each meter. Monthly service charges shall be billed to each meter in use regardless of whether any quantity charge is made. (2) Users outside the city limits. The monthly rate for water taken through a meter by a user outside of the city limits shall be as set forth in § 26- 127(d). (3) Construction rate. As a condition of issuance of a water service connection permit for premises under construction,the permittee shall pay a one-time flat fee for water used during the construction period and for costs incurred to make the water system ready for use. Section 2. That Section 26-124(a)(3) of the Code of the City of Fort Collins is hereby amended to read as follows: Sec. 26-124. Water from fire hydrants. (3) A charge for the cost of the water used, calculated by multiplying the applicable water rate by the number of metered thousand gallons. Section 3. That Section 26-126 of the Code of the City of Fort Collins is hereby amended to read as follows: Sec. 26-126. Schedule A, flat rates for unmetered construction water use. For residential and non-residential premises under construction,there shall be a one (1) time charge equal to one and one-half(1'/2) times the monthly base charge as specified for the applicable residential or nonresidential account in § 26-127. Section 4. That Section 26-129(a) and (c) of the Code of the City of Fort Collins are hereby amended to read as follows: Sec. 26-129. Schedule D, miscellaneous fees and charges. (a) Connection fees and service charges shall be as set forth in § 26-712(b). (c) The fees and requirements for raw water shall be as follows: (1) To satisfy raw water requirements with in-lieu cash payments, the rate per acre-foot of RWR is sixty-five hundred dollars ($6,500.). (2) The surcharge for water used in excess of applicable annual allotment shall be three dollars and six cents ($3.06) per one thousand (1,000) gallons. (3) The annual water allotment without surcharge, based on the minimum RWR shall be as follows: Meter Size Annual Allotment (inches) (gallons/year) 3/4 293,270 1 977,550 1-1/2 1,955,110 2 3,128,170 3 4,692,250 Above 3 325,851 gallons per acre-foot RWR Section 5. That the amendments to Chapter 26 of the City Code contained herein shall go into effect on January 1, 2004 and will be effective on all utility bills where the meter reading is made on or after January 1, 2004. Introduced and considered favorably on first reading, and ordered published this 4th day of November, A.D. 2003, and to be presented for final passage on the 18th day of November, A.D. 2003. Mayor ATI'EST: City Clerk Passed and adopted on final reading this 18th day of November, A.D. 2003. Mayor ATTEST: City Clerk ORDINANCE NO. 153, 2003 OF THE COUNCIL OF THE CITY OF FORT COLLINS AMENDING CHAPTER 26, ARTICLE IV, DIVISION 4 OF THE CODE OF THE CITY OF FORT COLLINS RELATING TO FEES AND CHARGES FOR WASTEWATER WHEREAS, the City Council is empowered and directed by Article XII, Section 6, of the Charter of the City of Fort Collins, Colorado, to by ordinance from time to time 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 wastewater utility, as set forth therein; and WHEREAS, Section 26-277 of the Code of the City of Fort Collins, requires that the City Manager analyze the operating and financial records of the water utility during each calendar year and recommend to the City Council the user rate fees or adjustments to be in effect for the following year; and WHEREAS,Section 26-277 further requires that the user rates shall be revised as necessary to assure equity of the rate system established and to assure that sufficient funds are obtained to adequately operate and maintain the wastewater system; and WHEREAS, the City Manager has recommended to the City Council that the following wastewater use rates be imposed for the billing year beginning January 1, 2004. NOW,THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows: Section 1. That Section 26-280 of the Code of the City of Fort Collins is hereby amended to read as follows: Sec. 26-280. Service charges established by category. The schedule of rates for each category described in§26-279 shall be as follows: Category Class of customer Rate A Single-family $17.86 per month residential user (flat rate) Single-family $7.89 per month plus $1.571 per 1,000 residential user gallons of either winter quarter water use (metered water or 3,000 gallons whichever is greater use) B Duplex (two- $28.32 per month family) residential users (flat rate) Duplex (two- $10.51 per month plus $1.571 per 1,000 family) gallons of either winter quarter water use residential users or 4,000 gallons whichever is greater (metered water use) C Multi-family $1.571 per 1,000 gallons of winter quarter residential user water use,plus a base charge of$1.24 per (more than two month per dwelling unit served dwelling units including mobile home parks) and winter quarter based nonresidential user D Minor The greater of$1.571 per 1,000 gallons of nonresidential water use, measured sewage flow or winter user quarter water use, whichever is applicable, plus the following applicable base charge: Size of water meter Base charge (inches) 3/4 or smaller $5.30 1 12.11 1'/z 24.53 2 41.06 3 68.23 4 114.57 6 561.75 8 609.99 E and F Intermediate $1.571 per 1,000 gallons of water use, nonresidential measured wastewater flow or winter and quarter water use, whichever is applicable; Significant plus a surcharge of$1.507 per million industrial user gallons for each milligram per liter of suspended solids in excess of 250 milligrams per liter; plus a surcharge of $1.265 per million gallons for each milligram per liter of BOD in excess of 200 milligrams per liter or a surcharge of $0.780 per million gallons for each milligram per liter of COD in excess of 300 milligrams per liter, or a surcharge of $2.264 per million gallons for each milligram per liter of TOC in excess of 100 milligrams per liter, whichever is applicable. The user shall either pay this calculated amount plus the applicable base charge set forth below: Size of water meter Base charge (inches) 3/4 or smaller $ 5.30 1 12.11 1'/x 24.53 2 41.06 3 68.23 4 114.57 6 561.75 8 609.99 G User outside city The rate for users outside the city limits limits: shall be the same as for like service inside the city limits as is specified in categories A-F and H in this Section. H Special with The rate shall be negotiated. agreement Section 2. That Section 26-282(a) of the Code of the City of Fort Collins is hereby amended to read as follows: Sec. 26-282. Wastewater strength or industrial surcharges and categories established. (a) The schedule of wastewater strength surcharge for customers located either inside or outside the city limits shall be as follows: Parameter Excess over Rate per (mg/7) 1,000 gallons BOD 200 $0.001265 COD 300 $0.000780 TOC 100 $0.002264 TSS 250 $0.001507 Section 3. That Section 26-289 of the Code of the City of Fort Collins is hereby amended to read as follows: Sec. 26-289. Miscellaneous fees and charges. The following is a schedule of miscellaneous fees and charges: Description Amount (1) Connection fees and service charges Fees shall be as set forth in § 26- 712(b). (2) Industrial discharge permits: a. Administration $76.00 annually b. Surveillance Determined for each user annually, based on direct cost plus 15% indirect costs, billed monthly (3) Laboratory support services Determined on a case-by-case basis based on direct cost plus 15% indirect costs (4) Materials and labor provided by Determined on a case-by-case city basis based on direct cost plus 15% indirect costs (5) Charges for disposal at the Fort Collins Regional Sanitary Waste Transfer Station: a. Septic tanks, vaults, privies, portable toilets: Generated within Larimer County $0.05 per gallon Generated outside Larimer County $0.075 per gallon b. Recreational vehicle sanitary waste holding tanks: Residential customers of the City of Fort Collins Wastewater Utility No charge for single disposal Others $2.00 base fee plus $.05 per gallon (6) Miscellaneous fees Determined on a case-by-case basis based on direct costs plus 15% indirect costs Section 4. That the amendments to Chapter 26 of the City Code contained herein shall go into effect on January 1, 2004. Introduced and considered favorably on first reading, and ordered published this 4th day of November, A.D. 2003, and to be presented for final passage on the 18th day of November, A.D. 2003. � i A E City Clerk Passed and adopted on final reading this 18th day of November, A.D. 2003. Mayor ATTEST: City Clerk ORDINANCE NO. 154, 2003 OF THE COUNCIL OF THE CITY OF FORT COLLINS AMENDING CHAPTER 26, ARTICLE VI,DIVISION 4 OF THE CODE OF THE CITY OF FORT COLLINS RELATING TO RATES AND CHARGES FOR ELECTRIC SERVICE WHEREAS, the City Council is empowered and directed by Article X1I, Section 6, of the Charter of the City of Fort Collins, Colorado, to by ordinance from time to time 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 City Manager has recommended to the City Council that the following adjustments for the rates for electric service for all billings issued on or after January 1, 2004; and WHEREAS, the City Manager has recommended to the City Council that the following development fees be implemented for all billings issued on or after January 1, 2004. NOW,THEREFORE,BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows: Section 1. That paragraphs (c), (f) and(h)of Section 26-464 of the Code of the City of Fort Collins are hereby amended to read as follows: Sec. 26-464. Residential energy service, schedule R. (c) Monthly rate. The monthly rates for this schedule are as follows: (1) Fixed charge, per account: Three dollars and sixty-nine cents ($3.69). (2) Demand charge, per kilowatt-hour: Two and fifty-five one- hundredths cents ( $0.0255). (3) Distribution facilities charge,per kilowatt-hour: One and fifty-six one-hundredths cents ( $0.0156). (4) Energy charge, per kilowatt-hour: One and sixty-four one- hundredths cents ( $0.0164). (5) In lieu of taxes and franchise: a charge at the rate of six and zero- tenths (6.0) percent of all monthly service charges billed pursuant to this Section. (f) Service charge. Service charges and connection fees shall be asset forth §26-712(b). (h) Service rights fee in certain annexed areas. A fee for defraying the cost of acquisition of service rights from Poudre Valley Rural Electric Association(PVREA)shall be charged for each service in areas annexed into the city after April 22, 1989,if such area was previously served by PVREA. The service rights fee will be collected monthly for a period of ten (10) consecutive years following the date of acquisition by the city of electric facilities in such area from PVREA. If service was previously provided by PVREA, the fee shall be twenty-five (25) percent of charges for electric power service.For services that come into existence in the affected area after date of acquisition, the fee shall be five (5) percent of charges for electric power service. The service rights fee charged pursuant to this Subsection shall not be subject to the charge in lieu of taxes and franchise otherwise required in this Section. Section 2. That paragraphs (c), (f), (g) and(I) of Section 26-465 of the Code of the City of Fort Collins are hereby amended to read as follows: Sec. 26-465. Residential demand service, schedule RD. (c) Monthly rate. The monthly rates are as follows: (1) Fixed charge, per account: Six dollars and eight cents ($6.08). (2) Demand charge,per kilowatt: Three dollars and seventy-two cents ($3.72). (3) Distribution facilities charge, per kilowatt-hour: One and twelve one-hundredths cents ($0.0112). (4) Energy charge, per kilowatt-hour: One and sixty-four one- hundredths cents ($0.0164). 2 (5) In lieu of taxes and franchise: a charge at the rate of six and zero- tenths (6.0) percent of monthly service charges billed pursuant to this Section. (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) The monthly standby distribution charge shall be one dollar and twenty-one cents($1.21)per kilowatt of contracted standby service. This charge shall be in lieu of the distribution facilities charge. For all metered kilowatts in excess of the contracted amount, the standby distribution charge shall be three dollars and sixty-three cents ($3.63)per kilowatt. (2) In the event the contractual kilowatt amount is exceeded, the beginning date of the contract period will be reset.The first month of the new contract period will become the current billing month and such month's metered demand shall become the minimum allowable contract demand for the standby service. Requests for standby service may be subject to a waiting period. An operation and maintenance charge may be added for special facilities required to provide standby service. (g) Service charge. Service charges and connection fees shall be asset forth §26-712(b). (i) Service rights fee in certain annexed areas. A fee for defraying the cost of acquisition of service rights from Poudre Valley Rural Electric Association(PVREA)shall be charged for each service in areas annexed into the city after April 22, 1989, if such area was previously served by PVREA. The service rights fee will be collected monthly for a period of ten (10) consecutive years following the date of acquisition by the city of electric facilities in such area from PVREA. If service was previously provided by PVREA, the fee shall be twenty-five (25) percent of charges for electric power service.For services that come into existence in the affected area after date of acquisition, the fee shall be five (5) percent of charges for electric power service. The service rights fee charged pursuant to this Subsection shall not be subject to the charge in lieu of taxes and franchise otherwise required in this Section. 3 Section 3. That paragraphs (c), (f), (g) and 0) of Section 26-466 of the Code of the City of Fort Collins are hereby amended to read as follows: Sec. 26-466. General service, schedule GS. (c) Monthly rate. The monthly rates for this schedule are as follows: (1) Fixed charge, per account: a. Single-phase, two-hundred-ampere service: Two dollars and eighty-four cents ($2.84). b. Single-phase, above two-hundred-ampere service: Seven dollars and forty-six cents ($7.46). C. Three-phase, two-hundred-ampere service: Four dollars and sixty-one cents ($4.61). d. Three-phase, above two-hundred-ampere service: Eight dollars and seventy-three cents ($8.73). (2) Demand charge, per kilowatt-hour: a. First two thousand (2,000) kilowatt-hours: Three and sixty- seven one-hundredths cents ($0.0367). b. Next five thousand(5,000)kilowatt-hours: One and seventy- three one-hundredths cents ($0.0173). C. All additional kilowatt-hours: Zero ($0.00). (3) Demand charge, per kilowatt: a. All kilowatts billed in excess of twenty-five (25) kilowatts: Six dollars and forty-one cents ($6.41). (4) Distribution facilities charge,per kilowatt-hour:One and forty-two one-hundredths cents ($0.0142). (5) Energy charge, per kilowatt-hour: One and sixty-four one- hundredths cents ( $0.0164). 4 (6) In lieu of taxes and franchise: a charge at the rate of six and zero- tenths (6.0)percent of all monthly service charges billed pursuant to this Section. (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) The monthly standby distribution charge shall be two dollars and fifty-five cents ($2.55)per kilowatt of contracted standby service. This charge shall be in lieu of the distribution facilities charge.For all metered kilowatts in excess of the contracted amount, the standby distribution charge shall be seven dollars and sixty-five cents ($7.65)per kilowatt. (2) In the event the contractual kilowatt amount is exceeded, the beginning date of the contract period will be reset.The first month of the new contract period will become the current billing month and such month's metered demand shall become the minimum allowable contract demand for the standby service. Requests for standby service may be subject to a waiting period. An operation and maintenance charge maybe added for special facilities required to provide standby service. (g) Service charge. Service charges and connection fees shall be asset forth §26-712(b). 0) Service rights fee in certain annexed areas. A fee for defraying the cost of acquisition of service rights from Poudre Valley Rural Electric Association(PVREA)shall be charged for each service in areas annexed into the city after April 22, 1989, if such area was previously served by PVREA. The service rights fee will be collected monthly for a period of ten (10) consecutive years following the date of acquisition by the city of electric facilities in such area from PVREA. If service was previously provided by PVREA, the fee shall be twenty-five (25) percent of charges for electric power service.For services that come into existence in the affected area after date of acquisition, the fee shall be five (5) percent of charges for electric power service. The service rights fee charged pursuant to this Subsection shall not be subject to the charge in lieu of taxes and franchise otherwise required in this Section. 5 Section 4. That paragraphs (c), (f), (g) and(1) of Section 26-467 of the Code of the City of Fort Collins are hereby amended to read as follows: Sec. 26.467. General service 50, schedule GS50. (c) Monthly rate. The monthly rates for this schedule are as follows: (1) Fixed charge, per account: Twenty-five dollars and zero cents ($25.00). An additional charge of twenty dollars and zero cents ($20.00)may be assessed if telephone communication service is not provided by the customer. (2) Coincident demand charge, per kilowatt: Eleven dollars and sixty two cents ($11.62) but not less than one cent ($.01) per kilowatt hour. (3) Distribution facilities demand charge, per kilowatt: Four dollars and thirty-one cents ($4.31). (4) Energy charge, per kilowatt-hour: One and sixty-four one- hundredths cents ($0.0164). (5) In lieu of taxes and franchise: a charge at the rate of six and zero- tenths (6.0)percent of all monthly service charges billed pursuant to this Section. (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) The monthly standby distribution charge shall be three dollars and sixty-two cents ($3.62)per kilowatt of contracted standby service. This charge shall be in lieu of the distribution facilities charge.For all metered kilowatts in excess of the contracted amount, the standby distribution charge shall be ten dollars and eighty-six cents ( $10.86) per kilowatt. (2) In the event the contractual kilowatt amount is exceeded, the beginning date of the contract period will be reset. The first month of the new contract period will become the current billing month 6 and such month's metered demand shall become the minimum allowable contract demand for the standby service. Requests for standby service may be subject to a waiting period. An operation and maintenance charge may be added for special facilities required to provide standby service. (g) Service charge. Service charges and connection fees shall be as set forth §26-712(b). (1) Service rights fees in certain annexed areas. A fee for defraying the cost of acquisition of service rights from Poudre Valley Rural Electric Association(PVREA)shall be charged for each service in areas annexed into the city after April 22, 1989, if such area was previously served by PVREA. The service rights fee will be collected monthly for a period of ten (10) consecutive years following the date of acquisition by the city of electric facilities in such area from PVREA. If service was previously provided by PVREA, the fee shall be twenty-five (25) percent of charges for electric power service.For services that come into existence in the affected area after date of acquisition, the fee shall be five (5) percent of charges for electric power service. The service rights fee charged pursuant to this Subsection shall not be subject to the charge in lieu of taxes and franchise otherwise required in this Section. Section 5. That paragraphs (c), (f), (g) and (m) of Section 26-468 of the Code of the City of Fort Collins are hereby amended to read as follows: 7 Sec. 26-468. General service 750, schedule GS750. (c) Monthly rate. The monthly rates for this schedule are as follows: (1) Fixed charge,per account: Thirty dollars and sixty cents ($30.60). a. Additional charge for each additional metering point: Twenty-five dollars and ninety-two cents ($25.92). b. An additional charge of twenty dollars and zero cents ($20.00)for each metering point may be assessed if telephone communication service is not provided by the customer. (2) Coincident demand charge,per kilowatt: Eleven dollars and forty- four cents ($11.44)but not less than one cent ($0.01)per kilowatt- hour. (3) Distribution facilities demand charge, per kilowatt: a. First seven hundred and fifty kilowatts: Four dollars and twenty-five cents ($4.25). b. All additional kilowatts: Two dollars and ninety-one cents ($2.91). (4) Energy charge, per kilowatt-hour: One and sixty-two one- hundredths cents ($0.0162). (5) In lieu of taxes and franchise: a charge at the rate of six and zero- tenths (6.0)percent of all monthly service charges billed pursuant to this Section. (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) The monthly standby distribution charge shall be two dollars and eighty-four cents($2.84)per kilowatt of contracted standby service. This charge shall be in lieu of the distribution facilities charge.For all metered kilowatts in excess of the contracted amount, the 8 standby distribution charge shall be eight dollars and fifty-two cents ($8.52) per kilowatt. (2) In the event the contractual kilowatt amount is exceeded, the beginning date of the contract period will be reset. The first month of the new contract period will become the current billing month and such month's metered demand shall become the minimum allowable contract demand for the standby service. Requests for standby service may be subject to a waiting period. An operation and maintenance charge maybe added for special facilities required to provide standby service. (g) Service charge. Service charges and connection fees shall be asset forth §26-712(b). (m) Service rights fees in certain annexed areas. A fee for defraying the cost of acquisition of service rights from Poudre Valley Rural Electric Association(PVREA)shall be charged for each service in areas annexed into the city after April 22, 1989, if such area was previously served by PVREA. The service rights fee will be collected monthly for a period of ten (10) consecutive years following the date of acquisition by the city of electric facilities in such area from PVREA. If service was previously provided by PVREA, the fee shall be twenty-five (25) percent of charges for electric power service.For services that come into existence in the affected area after date of acquisition, the fee shall be five (5) percent of charges for electric power service. The service rights fee charged pursuant to this Subsection shall not be subject to the charge in lieu of taxes and franchise otherwise required in this Section. Section 6. That paragraphs(b)and(c)of Section 26-469 of the Code of the City of Fort Collins are hereby amended to read as follows: Sec. 26-469. Special area floodlighting, schedule FL. (b) Monthly rate. The monthly rates (including a six and zero-tenths (6.0) percent charge in lieu of taxes and franchise) are as follows: (1) Charge per lamp, mercury vapor: a. One-hundred-seventy-five-watt: Fifteen dollars and thirty- eight cents ($15.38). 9 b. Two-hundred-fifty-watt: Eighteen dollars and eight cents ($18.08). C. Four-hundred-watt: Twenty-three dollars and sixty-three cents ($23.63). (2) Charge per lamp, high-pressure sodium: a. Seventy-watt: Six dollars and fifty cents ($6.50). b. One-hundred-watt: Nine dollars and twenty cents ($9.20). C. One-hundred-fifty-watt: Fourteen dollars and fifty-six cents ($14.56). d. Two-hundred-fifty-watt: Eighteen dollars and fifty cents ($18.50). e. Four-hundred-watt: Twenty-four dollars and thirty seven cents ($24.37). (c) Service charge. Service charges and connection fees shall be asset forth §26-712(b). Section 7. That paragraph Section 26-470(c) of the Code of the City of Fort Collins are hereby amended to read as follows: Sec. 26-470. Traffic signal service,schedule T. (c) Monthly rate. The monthly rates (including a six and zero-tenths (6.0) percent charge in lieu of taxes and franchise) are as follows: (1) Fixed charge, per account: Forty-nine dollars and fifty-one cents ($49.51). (2) Charge, per kilowatt-hour: Four and forty-two one-hundredths cents ($0.0442). (3) Equipment rental charges, when applicable, will be determined by cost analysis by the utility. 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. 10 Section 8. That the title of Division 4 of Article VI of Chapter 26 of the Code of the City of Fort Collins is hereby renamed to read as follows: DIVISION V. RATES,FEES AND CHARGES Section 9. That Section 26-462 of the Code of the City of Fort Collins is hereby amended to read as follows: Sec. 26-462. Determination of rates,fees and charges. The City Council finds and determines that the proposed rates, fees and charges to be charged and collected by the city are reasonable. The schedule of rates, fees and charges is hereinafter set forth and adopted as the lawful amounts for the city to charge and collect from customers within and without the corporate limits of the city for electricity and related services furnished to the consumers connected to the city electric distributing system in accordance with the terms and provisions of the schedule of rates hereinafter set forth in this Division together with such general rules and regulations on file with the City Clerk as shall be from time to time adopted by the city, which rules and regulations shall govern and control in all respects in rendering service and charging and collecting rates, fees and charges for the sale of all electrical energy and related services; and said schedule is hereby accepted and adopted as controlling in the matter of the electrical service to be rendered until further modified by the City Council. Section 10. That Section 26-471 of the Code of the City of Fort Collins is hereby repealed and reenacted to read as follows: Sec.26-471. Electric development fees and charges. (a) Any person desiring to connect to the city's electric distribution system,or to construct any structure to be served by said electric distribution system, shall pay the utility all applicable electric development fees and charges as described in this Division prior to said connection, whether such connection or the property served is inside or outside of the corporate limits of the city, in addition to any other applicable fees and charges described in this Article. Said development fees shall consist of an Electric Capacity Fee ("ECF") to recover the allocated cost of the electric distribution system attributable to the new service requested and a Building Site Charge(`BSC") to recover the cost of installing on-site electric service facilities to the user's side of the point of delivery. (b) The ECF shall be based upon and used to defray growth related capital expansion costs of substations and distribution infrastructure and related facilities, and actual costs that have been or will be incurred by the I utility to plan and provide service loads to new development, as more specifically described in this Division. These costs shall include the cost of labor and materials to install substation transformers, distribution transformers, primary cable, vaults, conduit, connections, switches, fuses, circuit breakers, and other infrastructure. The ECF shall vary with the electrical capacity requirements, lot size, and lineal feet of dedicated roadway,and shall be based on the actual cost of construction of any required off-site improvements. The parameters and rates shall be codified and periodically adjusted by the City Council to reflect actual costs. (c) No user of city electric service shall make any changes or additions to the property served that would significantly affect the nature or quantity of service used without the consent of the electric utility or without payment of all development fees and charges associated with such changes or additions. Such changes shall include,but need not be limited to,an increase in electrical capacity, an increase in the number of dwelling units or lot area to be served or change in use of the property. (d) In the case of modification or replacement of existing service, the utility shall take into account the current value of the existing system capacity in determining the new ECF due from the user. No cash refund shall be paid to any electric user whose allowable credit exceeds the new development fees and charges nor to any electric user who obtains permission to decrease demand for service. The credits prescribed in this Subsection are not transferable and shall apply only to the property served by the existing electric line and only to development fees and charges and not other utility fees and charges. Section 11. That a new Section 26-472 of the Code of the City of Fort Collins is hereby added to read as follows: Sec. 26-472. Residential electric development fees and charges. (a) An Electric Capacity Fee ("ECF") shall be paid for service to a single-family or multi-family residential building as set forth in this Section. The user shall not be responsible for actual construction of electric distribution system infrastructure, but shall be required to pay the costs of such construction. The amount of ECF for a new residential service shall be calculated as of the date of invoicing by the utility, and shall be based upon the then applicable rates and estimated costs of construction. No less than fifty (50) percent of the calculated ECF shall be paid prior to the scheduling of any construction work required to provide said service. If the initial fifty (50)percent is not paid within sixty (60) days of the date of the invoice, the invoice shall no longer be valid and may be reissued at the current rate as of the reissuance date. Upon completion of construction required to provide 12 said new service, any remaining ECF amounts due, including any adjustments to reflect the then current rates and actual costs of construction, shall be paid to the utility prior to the provision of electric service. (b) The ECF shall be the total of the site footage charge, dwelling charge, and systems modification charge, to be determined as follows: (1) The site footage charge shall be the combined total of : a. Three and three hundred ninety-five one thousandths cents ($0.03395)per square foot of developed site square footage, including all applicable tracts but excluding the area of dedicated public rights-of-way; and b. Seven dollars and twenty-four cents($7.24)per lineal foot of the developed site abutting a dedicated street or roadway. (2) The dwelling unit charge shall be as follows: a. for single family panel size with one hundred fifty(150)amp service (non-electric heat) eight hundred ninety-one dollars ($891.) per dwelling unit; b. for single family panel size with two hundred (200) amp service (non-electric heat or electric heat) one thousand five hundred seventy-two dollars ($1,572.)per dwelling unit; C. for multi-family panel size with one hundred fifty(150) amp service (non-electric heat) six hundred twenty-five dollars ($625.) per dwelling unit; d, for multi-family panel size with two hundred (200) amp service(non-electric heat or electric heat)one thousand forty- - nine dollars ($1,049.) per dwelling unit. (3) A system modifications charge will apply when a new or modified service will require infrastructure in addition to or different from the standard base electrical system model. The differential costs associated with such system modifications will be included in the calculated ECF. (c) A Building Site Charge ("BSC") for any new or modified residential service shall be paid prior to issuance of a building permit for the related construction or modification. The BSC shall be based upon the current rates as of the time of issuance of the building permit. The BSC shall 13 be the total of the secondary service charges, and any additional charges, determined as follows: (1) The secondary service charge shall be as follows: Secondary Service Charge Plus Per Foot Charge Size (up to 65 feet) For each Foot Over 65 1/0 service $413.00 $3.44/Foot 4/0 service $556.00 $4.02/Foot 350 kCM Service $606.00 $4.08 /Foot 1/0 Mobile Home Service $310.00 N/A 4/0 Mobile Home Service $435.00 N/A (2) Actual special costs to the utility of installation of secondary service resulting from site conditions shall be included in the BSC as additional charges. Such conditions may include, but are not limited to, frozen or rocky soil, concrete cutting and asphalt replacement. Section 12. That a new section 26-473 of the Code of the City of Fort Collins is hereby added to read as follows: Sec.26-473. Nonresidential electric development fees and charges. (a) An Electric Capacity Fee ("ECF") shall be paid for service to any nonresidential building,structure or other facility,as set forth in this Section. The user shall not be responsible for actual construction of primary electric distribution system infrastructure, but shall be required to pay the costs of such construction. The customer shall be responsible for secondary service installation from the point of delivery to the service panel. The amount of ECF for a new nonresidential service shall be calculated as of the date of invoicing by the utility, and shall be based upon the then applicable rates and estimated costs of construction. No less than fifty (50) percent of the calculated ECF shall be paid prior to the scheduling of any construction work required to provide said service. If the initial fifty (50) percent is not paid within sixty (60) days of the date of the invoice, the invoice shall no longer be valid and may be reissued at the current rate as of the reissuance date. Upon completion of construction required to provide said new service, any remaining ECF amounts due, including any adjustments to reflect the then current rates and actual costs of construction, shall be paid to the utility prior to the provision of electric service. The general manager of the utility may provide for alternate arrangements for a single, one hundred (100) percent payment of the ECF for a nonresidential project in the event that the general manager of the utility determines that the utility's costs cannot be accurately estimated in advance, provided that any amount due shall be secured by a 14 written commitment and shall be paid prior to the provision of any electric service. (b) The ECF shall be the total of the site footage charge, service entrance charge, and systems modification charge, to be determined as follows: (1) The site footage charge shall be the combined total of: a. Three and three hundred ninety-five one thousandths cents ($0.03395) per square foot of developed site square footage, including all applicable tracts but excluding the area of dedicated public rights-of-way; and b. Twenty-six dollars and twenty-seven cents($26.27)per lineal foot of the developed site abutting a dedicated street or roadway. (2) The service entrance charge shall be as follows: a. for single phase service at two hundred eight(208) volts, six hundred twenty-four dollars and ninety cents ($624.90) per one hundred (100) amps; b. for single phase service at two hundred forty (240) volts, seven hundred twenty-one dollars and four cents ($721.04) per one hundred(100) amps; C. for three-phase service at two hundred eight (208) volts, one thousand eighty-two dollars and thirty-three cents($1,082.33) per one hundred (100) amps; d. for three-phase service at two hundred forty (240) volts, one thousand two hundred forty-eight dollars and eighty-four cents ($1,248.84)per one hundred (100) amps; e. for three-phase service at four hundred eighty(480)volts,two thousand four hundred ninety-seven dollars and sixty-nine cents ($2,497.69) per one hundred (100) amps. (3) A system modifications charge will apply when a new or modified service will require infrastructure in addition to or different from the standard base electrical system model. The differential costs associated with such system modifications will be included in the calculated ECF. 15 (c) 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 the same manner and at the same time as the ECF is invoiced and paid pursuant to § 26-473(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, a charge of six dollars and thirty- two cents ($6.32) per foot of primary circuit; b. For three-phase service, a charge of ten dollars and ninety- one cents ( $10.91) per foot of primary circuit. (2) The transformer installation charge shall be as follows: a. For single-phase service,a charge of one thousand forty-nine dollars and sixty-two cents ($1,049.62) per transformer; b. For three-phase service, a charge of one thousand seven hundred eighty-nine dollars and thirty-two cents ($1,789.32) per transformer. (3) Actual special costs to the utility of installation of service resulting from site conditions shall be included in the BSC as additional charges. Such conditions may include, but are not limited to, frozen or rocky soil, concrete cutting and asphalt replacement. (d) In lieu of the fee structures set out in this Subsection, the ECF and BSC for any new service exceeding five thousand (5,000) kilowatts in size will be determined on a case-by-case basis so as to recover the direct and indirect costs associated with extending primary circuitry to the user's point of delivery. Section 13. That the amendments to Chapter 26 of the City Code set forth herein shall go into effect January 1, 2004, and will be effective on all utility bills for which the electric meter reading is made on or after January 1, 2004, and for all new service for which application is made on or after January 1, 2004. 16 Introduced and considered favorably on first reading, and ordered published this 4th day of November, A.D. 2003, and to be presented for final passa e'on the 18th day of November, A.D. 2003. Mayor' TTEST: City Clerk Passed and adopted on final reading this 18th day of November, A.D. 2003. Mayor ATTEST: City Clerk 17 ORDINANCE NO. 155, 2003 OF THE COUNCIL OF THE CITY OF FORT COLLINS AMENDING CHAPTER 26, ARTICLE VII,DIVISION 2 OF THE CODE OF THE CITY OF FORT COLLINS RELATING TO STORMWATER FEES WHEREAS, the City Council is empowered and directed by Article XII, Section 6, of the Charter of the City of Fort Collins, Colorado, to by ordinance from time to time 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 such utility, as set forth therein; and WHEREAS,Section 26-511(a)of the Code of the City of Fort Collins,requires that the City manager analyze the operating and financial records of the stormwater utility during each calendar year and recommend to the City Council the stormwater fees to be in effect for the following year; and WHEREAS, Section 26-514 of the Code provides that the Director of the stormwater utility shall determine the stormwater fee rate that shall apply to each specific lot or parcel of land based on runoff coefficient, rate factor, base rate and square footage as set forth in this Section; and WHEREAS, on August 21, 2001, the City Council adopted Resolution 2001-93 approving the Stormwater Financing Plan,which identified the need for future stormwater fee increases to fully fund the design, construction, operation and maintenance of the stormwater system facilities; and WHEREAS, consistent with the Stormwater Financing Plan, the City Manager has recommended to the City Council those adjustments to the stormwater base rate for the stormwater utility fee for the billing year beginning January 1, 2004, as set out hereinbelow. NOW,THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows: Section 1. That Section 26-514(3) of the Code of the City of Fort Collins is hereby amended to read as follows: Sec. 26-514. Determination of stormwater utility fee. (3) The base rate for the stormwater utility fee shall be$0.0041454 per square foot per month for all areas of the city. Section 2. That Section 26-516 of the Code of the City of Fort Collins is hereby amended to read as follows: Sec. 26-516. Billing for stormwater utility fee. (a) The stormwater utility fee shall be billed and collected with the monthly utility bill for those lots or parcels of land utilizing city utilities and billed and collected separately as stormwater utility fees for those lots or parcels of land and owners thereof not utilizing other city utilities. All such bills for stormwater utility fees shall be rendered monthly by the Financial Officer and shall become due and payable in accordance with the rules and regulations of the Financial Officer pertaining to the collection of utility fees. The Financial Officer shall place all such fees collected into the storm drainage fund to be deposited and separately kept as a fund to be used only for the purposes stated herein. (b) Service connection fees and other miscellaneous fees for servicing and maintaining a customer's account shall be as set forth in § 26-712(b). Section 3. That the amendments to Chapter 26 of the City Code contained herein shall go into effect on January 1, 2004. Introduced, considered favorably on first reading, and ordered published this 4th day of November, A.D. 2003, and to be presented for final passage on the 18th day of November, A.D. 2003. Mayor ST: City Clerk Passed and adopted on final reading this 18th day of November, A.D. 2003. Mayor ATTEST: City Clerk ITEM NUMBER: 24 A-E AGENDA ITEM SUMMARY DATE: November4, 2003 FORT COLLINS CITY COUNCIL STAFF: WendyWilliams Bill Bray/Ellen Switzer SUBJECT Items Relating to Utility Rates nd Charges for,, 00r4..�; 1; RECOMMENDATION Staff recommends adoption of the Ordinances on First Reading. FINANCIAL IMPACT These ordinances are projected to increase annual Light d Pawer Fund Revenues by 5.3%, Wastewater Fund operating revenues h 5 o, and'Sto D r4 a Fund operating revenues are projected to increase 10%. There are no`change$ td operating revenues in the Water Fund. EXECUTIVE SUMMARY A. First Reading of Ordinance No. 151, 2003, Amending Chapter 26, Article XII, of the Code of the City Relating to Utility Connection Fees and Miscellaneous Charges. B. First Reading of Ordinance No. 152, 2003, Amending Chapter 26, Article 111,Division 4 of the Code of the City Relating to User Fees and Charges for Water. C. First Reading of Ordin ce No. 1 3, 20Q$, ending Chapter 26, Article IV,Division 4 of the Code of the City Re11at#ng to Wastewate ees. 19 D. First Reading of Ordinance No. 154, 2003, Amending Chapter 26,Article VI,Division 4 of the Code of the City Relating to Electric Rates and Charges. E. First Reading of Ordinance No. 155, 2003, Amending Chapter 26, Article VII, Division 2 of the Code of the City Relating to Stormwater Fees. This item consists of five ordinances establishing the Utilities rates and various charges for 2004. November 4, 2003 -2- Item No. 24 A-E Overall, rates for utility services are proposed to increase as follows: Water No changes at this time. Wastewater 5.0% Electric 5.3% Stormwater 10.0% In total, a"typical" residential customer's utility bill will increase $5.38 per month. Both the Electric Board and Water Board reviewed the average rate increases in conjunction with raxa. their consideration and recommendations-to appro t dies 2004-2005 Budget. The proposed ordinance relating to uhlityconnectionfees and mi dellaneous charges creates uniform charges for all services related to es'td6lishing and servicing customer accounts. The connection and service fees replace miscellaneous utility fees scattered throughout Chapter 26 of the Code and codify others that had previously been set administratively. Other than minor housekeeping changes, no significant changes in the rates for water service are proposed at this time. Alternative water rate options will be addressed by City Council at the December 9, 2003 study session. If water rate changes are supported, those changes would be implemented by Ordinance before they spring of 2004. S rvR A 5% increase is proposed for wastev�at and a`>10°o in e s ,is proposed for stormwater. These increases will be "across the board" and`do not v k!by customer class. The electric rates increases will vary by customer class(residential,commercial,industrial) and for individual customers within the class. Based on the cost of service, residential customers will experience larger increases than the commercial and industrial customers. Included in the overall 5.3% increase is a 2% increase for the initial implementation of City's Energy Supply Policy for renewables and demand side management and energy conservation. 2.8% of the increase is a pass through of higher costs from the City's wholesale energy supplier,Platte River Power Authority and the remaining 0.5% is to recover increase costs of the distribution system including a the costs related to a reduced load factor due mainly to,summer air conditioning loads. The proposed ordinance also establishes a new section of the Code related to development charges for new construction and cust 8kp ers who increase e)ectric lows. These charges recover electric system costs related to new development including development review. The fees have been in existence since 1968 and are updated annually by the electric utility staff under the authorization of the "Electric Service Rules and Regulations" and the "Construction Policies Practices and Procedures" but the fee schedules have not been specifically included in the City Code in the past. The proposed ordinances will be effective January 1,2004 or for billings issued with meter readings made after January 1, 2004. November 4, 2003 -3- Item No. 24 A-E BACKGROUND Connection Fees and Miscellaneous Charges The Utilities Customer Service Division incurs the costs for initiating accounts, delinquencies, returned checks, and other miscellaneous customer services. In the past some of these fees have been included in the water and electric sections of the Code while others were set administratively. A new section of Code is proposed to consolidate the connection and miscellaneous utility billing charges in one place. The established fees in other Code sections are being deleted. The proposed fees are based on the cost to provide service and are billed to the specific customers who have received the service. The fees will beibilled ands oll ` te&on the monthly utility bills by the Customer Service Division, a part of theUtilides sterner 4rvice and Administration Internal Service Fund. The fees collected will offset the four utilities payments for the Division's services. The most frequently billed fee is the one-time service connection fee which applies to all new accounts. For those new accounts with at least one metered utility service(electric and/or water plus any unmetered services), the proposed charge is $19.65. Without a metered service the cost is $10.00. This compares to the current charge of $15.65 for the initiation of a metered electric account. The new charge, which now includes all utilities, is based on an analysis of the field and office expenses incurred to establish a new account. The proposed fee schedule follows: . A, Proposed Utilities Connection Fees and Misc. Service Charges Service connection fee for account with one or more metered services (including all non-metered services for the same account). $19.65 Customer initiated rate change(after 90 days of new service). $19.65 Service connection fee for account with only non-metered services (stormwater,wastewater,wind,flat commercial electric,sprinkler clocks, cable towers,and floodlights). $10.00 Service fee to reinstate an account to the owner/property manager between tenants. $10.00 Turn-off notice fee. Y$7.00 4 Reconnect fee per service for water or electric o(lowtpg disconnection for delinquency. $20.00 After hours reconnect—Water (after 5:00 pm,weekends,and holidays) $46.00 After hours reconnect—Electric (after 5:00 pm,weekends,and holidays) $55.45 Return item fee(check,electronic fund transfer,credit card,etc.) $ 15.00 Owner requested repair disconnect or reconnect fee,per trip. $20.00 Research/document fee per hour. $20.00 Other miscellaneous charges will be based on direct costs plus 15%for indirect costs. November 4, 2003 -4- Item No. 24 A-E Water The proposed Ordinance does not change the tiered and seasonal rates that were approved by City Council in November 2002. The Council will address options for the water rates at the December 9, 2003 Study Session. The ordinance does make a few housekeeping changes that are needed, including the elimination of the residential flat rates since all water customers are now metered. It also makes reference to the connection and services charges proposed for the Billing Procedure Section of the Code. Wastewater The Ordinance increases the City's WasCater�rates b} ,The increase is applied "across the oposed rafes;`,a typical"single family residential customer's board" for all customers. Witt' the pr monthly bill will increase from$16.61 to$17.44 or 83 cents p�,month. This is based on a system average 5,456 gallons per month winter quarter water use. Te wastewater rate ordinance also establishes a minimum winter quarter usage for single family residential customers of 3,000 gallons (4,000 for duplexes). The vast majority of the customers affected by the new minimum are snowbirds and other winter vacancies. The wastewater rate increase is needed to fund the operations and maintenance of the City's wastewater system and to meet debt service coverage requirements. Wastewater revenues have lagged projections since the Wastewater rates are based on metered water consumption. For residential customers and some;commercial customerst,the, water use billed during December, January and February determines their wastewater' billings for the next year. The remaining commercial customers are billed for theirmetered water use each month. Since the community has strongly supported both the water restncti6ns and voluntary wafgr conservation throughout the past year,the Utilities' wastewater revenues inadvertently declined as well. In addition,the Wastewater Fund experienced a reduction in per customer revenue as flat rate customers were converted to water meters. Electric Electric rates are proposed to increase an average of 5.3%. The rate adjustments to the individual rate classes and customers will vary from the 5.3% average based on cost of service. The increases are due to three factors. Platte River Power Authority, the City's wholesale energy supplier, has increased its rates 3.9% effective January 11 2004. This wholesale increase equates to a 2.8% increase to Fort Collins customers. The secon actor in the s.3'% overall rate adjustment is a 2% te increase to begin to implement Energy pil Picy adopted by Council Resolution 2003-038. Approximately 1% is being targeted for renewables to achieve the goal of 2% of the City's power supply delivered from renewable energy sources by the end of 2004. The additional 1% will be earmarked for the implementation of conservation and demand side management programs to reduce per capita energy consumption and peak demand.The remaining 0.5%is to recover increased costs of operations and maintenance and the reduction in system wide load factor. The reduction in load factor is likely related to increased use of air conditioning within the residential sector. The proposed rate increases by customer class are as follows. Individual customers within these rate classes will vary from the class average. This is particularly true in the GS750 (industrial/large commercial) rate class. While the class average is 3%, the 15 customers in this class will have increases of between 12.8% and 2.2%. This shift is a result of a rate design change to smooth the rate transition between the GS50 and GS750 rate classes. With the proposed rates, a typical single November 4, 2003 -5- Item No. 24 A-E family residential customer's monthly bill will increase 7.5%from$43.34 to$46.58 or$3.24 cents per month. This is based on a system average 700kWh per month. Proposed Electric Increases by Customer Rate Class Residential Energy Service 7.5% Residential Demand Service 10.0% General Service (Small Commercial) 4.2% General Service 50 (Medium Commercial) 3.3% General Service 750 3.0% (Large Commercial &Industrial)' Floodlighting 10.0% Traffic Signals x �... _ _ 1.0% The Ordinance also removes the services charges detailed in each electric rate schedule. These charges are being replaced by the connection and services charges proposed for the Utility Bill and Account Charges Authorized; Procedures - Section 26-712. The rate schedules reference the fees in the new Code section. Further, this Ordinance adopts new sections of Code dealing with the electric development charges for new construction and existing customers who increase electric loads. The fees recover the costs of both on-site and off-site faciltfies regyired°�'Q,pr idt l6gIr1 service to the new development. These fees have been collected since 1968 under the authorization of the Utilities' "Electric Service Rules and Regulations" and "Constructn Policies Practicesnd Procedures", which was most recently revised by Council Ordinance 083,2062. The charges` ill continue to be updated annually based on current labor and materials costs. Development fees and/or charges apply to all construction, new development, redevelopment or remodeling of structures served by the City electric system. Development fees include development review, actual on-site costs incurred by the Utility to provide electric services and an allocated portion of the cost of the electric distribution system that has been or will be added to serve new loads. Fees are based on capacity requirements as determined by the Utility, and lot size and lineal feet of dedicated roadway as detern ed by an apprpve 1 Af Fifty percent(50%)of calculated fees are payable prio'rto scheduling installation of electric facilities, and the remaining fees are payable prior to.energizing the electric system. Building site charges related to the installation of secondary electric services from the property line to the service panel are collected on residential development at the time a building permit is issued. November 4, 2003 -6- Item No. 24 A-E The fees are proposed as follows: Residential Electric Development Fees Residential Development Fees = Electric Capacity Fee (ECF) + Building Site Charges (BSC) A. Residential Electric Capacity Fee (ECF): {4 The ECF recovers the allocated cost of the electric distribution system from the lot corner of the development to the electric substation: The cost of street lighting is also included. ECF = Site Footage Fees+ Dwelling Unit Fees + System Modifications 1) Site Footage (Single/Multifamily) $0.03395 per square foot of developed area $7.24 per foot of dedicated roadway 2) Single Family Pagel Size • 150 amp"service (rion-electric heat) $891 per dwelling unit • 200 amp service(non-electricIheat or electric heat) $1,572 per dwelling unit Multifamily Panel Size • 150 amp service (non-electric heat) $625 per dwelling unit • 200 amp service(non-electric heat or electric heat) $1,049 per dwelling unit 3) System Modifications: Additional capacity charges or credits will result from any required system modification differing from that of the base electrical system model. Estimated charges will be provided prior to construction. The total electric capacity fee fo typical'"Sin fa dwelling unit is $2,216 for a 150 amp service and$3,040'fora 20 Amp p service The tot •electric capacity fee for a"typical' a, multifamily unit is $1,004 for 150 amps and$1,441 for 200 amps. B. Residential Building Site Charges (BSC): Building site charges provide for electric service from the property line to the service panel. Unit costs for all building site charges including labor, equipment and materials are recalculated on an annual basis. Additional charges apply for conditions such as frozen or rocky soil, concrete cutting, asphalt replacement, and other site conditions that increase the cost of installation. November 4, 2003 -7- Item No. 24 A-E Included as part of the building site charges is the secondary electric service charge which recovers the cost of the electric service between the customers meter and the Utilities' transformer. Secondary service charges are as follows: Single-Family and Multi-Family Residential Secondary Service Charges Secondary Service Size Charge (up to 65 feet) Charge (over 65 feet) 1/0 service $413.00 $3.44/Foot 4/0 service $556.00 $4.02/Foot 350 kCM Service $606.00 $4.08 /Foot 1/0 Mobile Home ,''$310.00 N/A Service 4/0 Mobile Home $435i00 " N/JA Service Commercial/Industrial Electric Development Fees A. Commercial/ Industrial Electric Capacity Fee (ECF): The ECF recovers the allocated cost of the electric distribution system from the lot corner of the development to the electric substation. The cost of street lighting is also included. [E7CF= SiteFo ge Fee + Servi Ace Capacity Fee + System Modifications 1) Site Footage: $0.03395 per square foot of developed area $26.27 per foot of dedicated roadway 2) Service Entrance Capacity: a) Single-Phase $624.90 per 100 amps @ 208 volts $721.04 per 100 amps @ 240 volts st b) Three-Phase , $1,082.33 per 100 amps @ 208 volts $1,248.84 per 100 amps @ 240 volts $2,497.69 per 100 amps @ 480 volts 3) System Modifications: Additional capacity charges or credits will result from any required system modification differing from that of the base electrical system model. Estimated charges will be provided prior to construction. November 4, 2003 -8- Item No. 24 A-E B. Commercial/Industrial Building. Site Charges (BSC): Building site charges provide for electric service from the corner of the property to the transformer. Secondary service is provided by the customer. Single-phase $6.32 per foot of primary circuit $1,049.62 per transformer Three-phase $10.91 per foot of pnmary'eircuit $1,789.32 per transformer Additional charges may apply for conditions such as frozen or rocky soil, concrete cutting, asphalt replacement, and other site conditions that increase the cost of installation. These development charges do not apply to individual services above 5,000 kilowatts for which the fees shall be determined on a case-by-case basis to recover direct and indirect costs. Stormwater If adopted by City Council,the City's stormwater rates will increase 10% "across the board" for all customers. The 10% increase is9 sJst nt wit4 th 0 S rmwater Financing Plan adopted by City Council Resolution 2001-93. The increase is=n _, ess to nd the operations and maintenance of the City's stormwater system,to pay debt service and to continue the acceleration of the citywide capital improvements program. A tjpical'�single family residghtial customer's monthly bill will increase from$12.96 to$14.26 or$1.30 per month. The typical bill is based on an 8600 square foot lot with light run off. The proposed increase is to be effective on billings issued on or after January 1, 2004. Impact on Typical Residential Customer The following table summarizes the impact of the proposed electric,wastewater and stormwater rate adjustments on a typical single family residential customer's monthly utility bill. In total, this "typical"customer's utility bill will increase$5,38ppr month.-Any changes to the 2004 water rates will be determined at a later date. o .>s.; November 4, 2003 -9- Item No. 24 A-E Typical Residential Customer— Monthly Utility Bill Current Proposed 2003 2004 $ Increase % Increase Electric $ 43.34 $ 46.58 $ 3.24 7.5% 700 kWh per month Wastewater $ 16.61 $ 17.45 $ 0.84 5.0% 5,456gallons/month winter quarter use r Stormwater $ 12.96 $ 14.26 $ 1.30 10.0% 8,600 sq ft lot, light runoff; Water January 5,000 allons $ 21.62 $ 21.62 No changes at this time. July 21,000 gallons $ 63.77 $ 63.77 No changes at this time. Total Monthly Utility Bill Jan Water Use $ 94.53 $ 99.91 $ 5.38 5.7% July Water Use $ 136.68 $ 142.06 $ 5.38 3.9% Total Annual Utilit Bill` $ 1,274.40 1 1 338.96.1 $ 64.56 5.1% `Annual water use 50th ercentile}Or 117,131 Ions to " Front Range Rate Comparison—Typical Residential Customer The following graphs show rate comparisons for several front range cities. The data is based on rates in effect September 1, 2003 for the following residential use: Electric 700 kWh/month Wastewater 5,600 gallons winter quarter water use Stormwater 8,600 square foot lot, light run off Water—January 5,,000 gallons Water—July 21,000gallons ff �3 November 4, 2003 -10- Item No. 24 A-E F Residential Utilities Rate Comparison January Water Use $100 $90 -- _ -- - -_ $80 -- - - $70 - -_-- ----- - - $60 $4 $30 - $20 $10 -..- $ Fort Collins Greeley Boulder Loveland Denver Longrront Co.Sprs a Stormy ater $12.96 $4.30 $6.05 $10.39 $3.46 $- ❑Wastewater $1686 $16.24 $12.34 $17,86 $10.92 $18.51 $14.15 Water $21.62 $15.40 $16.37 $12.93 $10.99 $14.95 $15.46 ■Bectric $43 34 $54.95 $54.95 $40.64 $54 95 -,... $41.44 $45.42 Residential Utili*s Ripe Comparison July Wafer Use $160 $140 $120 - - - - - -- - $100 - - $80 Jy� $60 x o- $20 Fort Collins Greeley Boulder Loveland Denver Longrtont Co.Sprs ®$tormv ater $12.96 $4.30 $6.05 $10.39 $3.46 $5.03 $- C Wastew ater $16.86 $16.24 $12.34 $17.66 $10.92 $18.51 $14,15 a Water $63.77 $45.00 $58.94 $3693 $58.47 $60.11 $59.47 ■Bectnc $43.34 $54.95 $54.95 $40.64 $54.95 $41.44 $45.42