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HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 10/21/2008 - ITEMS RELATING TO UTILITY RATES AND CHARGES FOR 20 9 ITEM NUMBER: 7 AGENDA ITEM SUMMARY DATE: October 21, 2008 FORT COLLINS CITY COUNCIL STAFF: Brian Janonis Terry Bryant Steve Catanach SUBJECT Items Relating to Utility Rates and Charges for 2009. RECOMMENDATION Staff recommends adoption of these Ordinances on Second Reading. EXECUTIVE SUMMARY A. Second Reading of Ordinance No. 111, 2008 Amending Chapter 26 of the City Code Relating to Wastewater Rates and Charges. B. Second Reading of Ordinance No. 112, 2008 Amending Chapter 26 of the City Code to Revise Electric Rates and Charges. C. Second Reading of Ordinance No. 113, 2008, Amending Chapter 26 of the City Code to Revise Electric Development Fees and Charges. These Ordinances,unanimously adopted on First Reading on October 7,2008, increase wastewater rates 11%, electric rates by 2.8%on average,and electric development fees by 5-6%. The changes will be effective January 1, 2009. ATTACHMENTS 1. Copy of First Reading Agenda Item Summary - October 7, 2008. (w/o original attachments) r ATTACHMENT ITEM NUMBER: 9 A-C AGENDA ITEM SUMMARY DATE: October 7, 2008 FORT COLLINS C O I FF: Brian Janonis Terri Bryant Steve Catanach SUBJECT Items Relating to Utility Rates and Charges for 2009. RECOMMENDATION Staff recommends adoption of the Ordinances on First Reading. The Electric Board approved the proposed 2009 budget, including budget exceptions, and the proposed increases to electric rates and development fees by a vote of 5-0. The Water Board approved ro s b g w r, wastewater and stormwater, including budget exceptions increa tow to mo y rates by a vote of 6-2. FINANCIAL IMPACT The rate Ordinances are projected to increase the annual operating revenues of the Wastewater Fund by 11%and the Light and Power Fund by approximately 2.8%. No increases are proposed for water and stormwater monthly rates. The combined utility fees for a typical single family residence will increase $3.68 per month. Proposed electric development fees and charges cover costs of new commercial and residential development. The financial impacts vary by the size and nature of the development. If the proposed fees are adopted,electric development fees and charges will increase 5 to 6%. The combined utility development fees for a typical single family residence (exclusive of raw water requirements which are not changing) will increase from $10,639 to $10,790 or 1.4%. The proposed fees will be effeC/Opy EXECUTIVE SUMMARY A. First Reading of Ordinance No. 111, 2008 Amending Chapter 26 of the City Code Relating to Wastewater Rates and Charges. B. First Reading of Ordinance No. 112,2008 Amending Chapter 26 of the City Code to Revise Electric Rates and Charges. October 7, 2008 -2- Item No. 9 A-C C. First Reading of Ordinance No. 113,2008,Amending Chapter 26 of the City Code to Revise Electric Development Fees and Charges. The proposed ordinances mcre to at °°'lye tri ates by 2.8% on average, and electric development fees by 5 %. I a rove c w e effective January 1, 2009. BACKGROUND MONTHLY RATES Wastewater Ordinance No. 111, 2008 increases the City's wastewater rates by 11%. The increase is applied "across the board" to all customers. With the proposed rate, a typical single family residential customer's monthly bill will increase from $22.06 to $24.48 or $2.42 per month in 2009. This is based on a system average of 5,200 gallons per month winter quarter average (WQA) water use. The wastewater rate increase is needed to generate sufficient revenue to fund the wastewater operations and meet the increase in long-term debt service obligations for a major capital project to replace the trickling filter,makU94 tro ' prov ment d pare for future regulation-based improvements at the Mulberry The Mulberry plant was built ii u in 1958 d 1972. In the past two years, the treatment performance ofthe plant's 60-year old trickling filter(which provides first-stage secondary treatment for the plant flow)has degraded several times requiring it to be taken off-line,cleaned and restarted. Failure of the trickling filter creates a significant increase in odors until it has been cleaned. Even after restarting, the trickling filter's effectiveness has not recovered to its past efficiency. In late 2006, a study by MWH Consulting Engineers was commissioned to determine the best solution for the long-term use of the Mulberry plant. Upgrading the plant's secondary treatment processes by removing the trickling filter and its associated facilities and installing a new aeration basin and associated facilities is the most cost-effective solution. Because the trickling filter is already recommended for replacement, odor control improvements will also take place. Upgrading the facility will also allow the Utilities to prepare for future regulation-based improvements. The improvements, including design and construction, are projected to cost$31.8 million and will be funded by debt. An II% increase is proposed fo 009, °° fo 10, 9° for 2011 to maintain reserve requirements, meet debt servic and nue er io m tenance functions. A October 7, 2008 -3- Item No. 9 A-C As shown in the graph below,the City's wastewater rates remain comparable to those of other local utilities: Wastewater Rate Comparisons -WQA 5,200 gallons Data September4,2008 $30 $26.76 $25 $24.48 d p E $22.06 C7 $20 $17.67 $18.95 $19.15 $19.68 $20.00 $20.28 O E $15 v► ._ d " � $10 > $5 Longmont Greeley Loveland Boulder lMndsor Denver Ft.Collins Ft.C- Co.Sprs 2008 Proposed 2009 Electric The Utilities are proposing an CeraoasleraginX% in 2009. The rate increase is wholly due to the increases in purchase power costs from Platte River Power Authority,the City's wholesale energy supplier. On August 28,2008,Platte River's Board adopted a 3.8%wholesale rate increase for 2009. Platte River's increases are due to several factors: • Increased coal and rail costs at Rawhide and Craig power plants. • Increased purchased power costs from WAPA (Western Area Power Administration). • Mercury mitigation costs. • Expanded energy efficiency programs(1%of revenues per PR's 2007 Integrated Resource Plan). • Capital expenditure increases (new projects and increased material costs for existing projects). • Reduction in surplus sales revenues. Platte River's long term finan ' g i id' significant rate hikes for the expenses needed for replacemCOtp�o hen a de is out of commission for 5 to 6 weeks. PRPA's rate increasese sts 1 spread o over 6 years from 2009 to 2014. The proposed 2.8%increase in 2009 will vary slightly by rate class. Residential rates will increase 2.5%-2.7%, commercial rates will increase 2.7%-2.9%, and industrial rates will increase approximately 3.2%. For a typical residential customer using 700 kilowatt-hours per month, the monthly bill will increase $1.26 per month from $49.40 to $50.66. I October 7, 2008 -4- Item No. 9 A-C The following chart compares average monthly residential electric rates with other front range utilities: Electric Rate Comparison - 700 kWh per Month Data September 4,2008 A $100 Y c $90 $81.69 d $79.17 $80 $69.60 y $70 $56.01 $60 $48.71 $49.40 $50.66 w $50 $42.82 C d $40 N 2 $30 y 0= $20 U $10 j $- Q Longmont Loveland Ft. Collins Ft.0 Co. Sprs P.V.REA Xcel- Xcel- 2008 Proposed Winter Summer 2009 Monthly Rate Summary The following table summarizes ' pa a Posed r ' creases on a typical single family residential customer's monthly utility bill. In total, a"typical"customer's bill will increase $3.68 per month. Typical Residential Customer-Monthly Utility Bill Current Proposed $Increase % 2008 2009 Increase Electric 700 kWh per month $49.40 $50.66 $1.26 2.6% Wastewater 5,200 gallons/month winter quarter use $22.06 $24.48 $2.42 11% Stormwater 8,600 sq. ft. lot, light runoff $1 6 6 $0.00 0% Water January 5,000 gallons $22.56 $22.56 $0.00 0% July 21,000 gallons $60.90 $60.90 $0.00 0% Total January Monthly Utility Bill $108.28 $111.96 $3.68 3.4% Total June Monthly Utility Bill $146.63 $150.30 $3.68 2.5% I October 7, 2008 -5- Item No. 9 A-C The following charts compare water,wastewater,stormwater and electric utility costs for eight front range cities. They include the recommended 2009 increases for wastewater and electric for Fort Collins. Projected rate adjustments for the other cities are unknown at this time. Residential lltilities2D08 Rabe Comparison January Water Use-5,000 Gallons $140 $120 - $100 $80 ! $60 9 B i •1 h� I �! �e! ��!!I 81 F ! �4 __ � � Bonder sprS Dever R.Collirs Ft.Collis GreeleyWrdsor Pam) (Xcel) 108 U (fig) In yra t LoveaM (PVRFA) III stom iter $6.95 $6.00 $7.40 f$22.56 $1425 $4.30 $7.13 $10.39 $4.09 OWistemeter $'9.6B $25.76 $2028 $24.48 $E.95 Sn.67 $E.b $20.00 ■Mer $&30 $'6.54 $12.87 $22.56 $985p Beotric $79.n $56.01 $79.n $50.66 $79.17 $4282 $48.71 $69.60 Residential Utilities 2008 Rate Comparison July Water Use 21,000 Gallons $200 $180 - $160 $140 -.- $120 $100 $80 $60 fl , $20 $- r Boulder Denver Ft.Collim Ft.Collins Greeley Windsor Mel) co.sprs NO .08 .09 (Xcel) Longmont Loveland (PVREA) ■stonnvater $5.96 $6.00 $7.40 $14.26 $i4.26 $4.30 $7.13 $10.39 $4.09 DNAvtevater $1a.68 $26.76 $20.28 $22.06 $24.48 $13.95 $17.67 $'B.5 $20.00 ■VVBI $54. $56 $5 42 $76.51 $59.93 $60.90 $60.90 $58.41 $60.11 $36.71 $8171 ® ectric $Bt69 .01 $8169 $49.40 0.66 $Bi89 $42.82 El $48.71 $69.60 _ I October 7, 2008 -6- Item No. 9 A-C ELECTRIC DEVELOPMENT CHARGES Electric development charges Jpeft4e oc costs to the utility for each commercial or residential dev opme t The o o on f these charges are the Electric Capacity Fee for the off-site a tric s m, uildin ite Charge for the on-site electric costs. The electric developmen es c 'ncreas ually to adjust for inflation and cost increases. Increases range from 5.1% for single family, 5.7% for multi-family, and 5.8% for commercial development. The increases are due primarily to the significant increases experienced in the cost of transformers, metals and other construction materials. The following tables compare current fees with proposed fees for residential and commercial development: ELECTRIC DEVELOPMENT FEES AND CHARGES RESIDENTIAL Category Charge 2008 2009 % diff Electric Capacity Per square foot $0.04731 $0.04919 4% Fee Per line font f o 9 3 $9.77 2.5% 1 177 $1,262 7.2% C7 Sing a am 200A $1,991 $2,143 7.6% Single-Fam UQ 150A $785 $842 7.3% Multi-Faro 200A $1,399 $1,505 7.6% Multi-Fam Building Site Cn1/0 $625 $658 5.3% Charges o a 4/0 $787 $817 3.8% rn 3 kC $8 $903 3.4% I October 7, 2008 -7- Item No. 9 A-C ELECTRIC DEVELOPMENT FEES AND CHARGES COMMERCIAL Category a 008 2009 % increase Electric Capacity Per sq a foot 0.0 $0.04919 4.0% Charge Per line fo F $35. $37.64 6.0% Service Entrance(per kVA) $55.11 $57.77 4.8% Building Site Charges Primary Circuit(I-ph) $8.78 $8.90 1.4% Primary Circuit(3-ph) $17.72 $19.12 7.9% Transformer installation(1-ph) $1,148 $1,257 9.5% Transformer installation(3-ph) $2,132 $2,335 9.5% The impact to a typical single family residence (8,600 sq. ft. lot, 150 amp service) is an increase of $151 from $2,876 to $3,027, or 5%. The Water Board reviewed the 2009 water utilities budget and monthly wastewater rate increase at the September 25, 2008 Board g. oPer a tion supporting the proposed budget and rate change. The Electric Board reviewed th Li dbud d the proposed increases to the electric rates and development fees and charges at its meeting on September 17, 2008. The Board approved a motion supporting the proposed budget and fee changes. ATTACHMENTS 1. Water Board Minutes—excerpt from September 25, 2008 meeting relating to budget, rates and PIFs and additional Board comments. 2. Electric Board Minutes—excerpt from September 17,2008 meeting relating to budget,rates, and electric fees. COPY I ORDINANCE NO. 111, 2008 OF THE COUNCIL OF THE CITY OF FORT COLLINS AMENDING CHAPTER 26 OF THE CODE OF THE CITY OF FORT COLLINS RELATING TO WASTEWATER RATES AND CHARGES 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 wastewater utility, as set forth therein; and WHEREAS,City Code Section 26-277 requires that the City Manager analyzethe operating and financial records of the wastewater 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, City Code Section 26-277 further requires that the user rates 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 treatment performance of the Mulberry Wastewater Reclamation Plant has significantly degraded and $31.8 million is required to upgrade the plant's secondary treatment processes, to prepare the plant for future regulation-based improvements and to make odor control improvements; and WHEREAS, such improvements are not related to growth and will require increased user rates over a five year period in order to generate sufficient revenues to repay the debt necessary to finance these improvements; and WHEREAS, wastewater rates and charges were increased in 2008 to finance the necessary improvements and this is the second year in the five year period; and WHEREAS, the City Manager has recommended to the City Council that the following wastewater rates be imposed for the billing year beginning January 1, 2009; and 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: 26-280. Service charges established by category. The schedule of rates for each category described in § 26-279 shall be as follows: I Category Class of Rate Customer A Single-family residential 25.70 per month user(flat rate) Single-family residential 11.33 per month plus$2.262 user(metered water use) per 1,000 gallons of either winter quarter water use or 3,000 gallons, whichever is greater 6 Duplex(two-family) 40.76 per month residential users(Flat rate) Duplex(two-family) 15.13 per month plus 2.262 residential users(metered per 1,000 gallons of either water use) winter quarter water use or 4,000 gallons,whichever is greater C Multi-family residential $2.262 per 1,000 gallons of user(more than two winter quarter water use,plus dwelling units including a base charge of$1.79 per mobile home parks)and month per dwelling unit winter quarter based served nonresidential user D Minor nonresidential user $2.262 per 1,000 gallons of water use,measured sewage Flow or winter quarter water use,whichever is applicable, plus the following applicable base charge: Size of water Base meter(inches) charge '/.or smaller $ 7.64 1 17.44 1�L• 35.31 2 59.09 3 98.19 4 164.90 6 808.46 -2- 8 877.88 E and F Intermediate 2.262 per 1,000 gallons of nonresidential and water use, measured Significant industrial user wastewater flow or winter quarter water use, whichever is applicable; plus a surcharge of$2.168 per million gallons for each milligram per liter of suspended solids in excess of 250 milligrams per liter; plus a surcharge of 1.820 per million gallons for each milligram per liter of BOD in excess of200 milligrams per liter or a surcharge of $1.122 per million gallons for each milligram per liter of COD in excess of 300 milligrams per liter, or a surcharge of $3.259 per million gallons for each milligram per liter of TOC in excess of 100 milligrams per liter, whichever is applicable. The user shall pay this calculated amount plus the applicable base charge set forth below: Size of water Base meter(inches) charge '/.or smaller $ 7.64 1 17.44 1'/, 35.31 2 59.09 3 98.19 4 164.90 6 808.46 8 877.88 -3- G User outside City limits The rate for users outside the City 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 agreement The rate pursuant to a special wastewater services agreement approved by the City Council pursuant to§ 26-290 shall be set forth in said agreement. Section 2. That Section 26-282(a) of the Code of the City of Fort Collins is hereby amended to read as follows: See.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: Rate per Parameter Excess over(mg/l) 1,000 gallons BOD 200 S 0.001820 COD 300 0.001122 TOC 100 0,003259 TSS 250 0.002168 Section 3. That the amendments to Chapter 26 of the City Code contained herein shall go into effect on January 1, 2009. Introduced, considered favorably on first reading, and ordered published this 7th day of October, A.D. 2008, and to be presented for final passage on t st day of October, A.D. 2 0& Mayor ATTEST: Chief Deputy City Clerk -4- I Passed and adopted on final reading on the 21st day of October, A.D. 2008. Mayor ATTEST: City Clerk -5- ORDINANCE NO. 112, 2008 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 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, Platte River Power Authority has increased the City's wholesale cost of power approximately 3.8% in 2009; and WHEREAS,the City Manager and staff have recommended to the City Council the following adjustments to the electric rates for all billings issued with meter readings on or after January 1, 2009; and WHEREAS, based on the foregoing, it is the desire of the City Council to amend Chapter 26 of the City Code to revise electric rates, fees and charges. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows: Section 1. That Section 26-464(c) 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 are as follows: (1) Fixed charge,per account: Three dollars and sixty-nine cents ($3.69). (2) Demand charge,per kilowatt-hour: Two and eighty-eight one-hundredths cents ($0.0288). (3) Distribution facilities charge,per kilowatt-hour:One and fifty-sixone-hundredths cents ($0.0156). (4) Energy charge, per kilowatt-hour: One and eighty-six one-hundredths cents ($0.0186). (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. I Section2. That Section 26-465(c)of the Code of the City of Fort Collins is 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: Four dollars and nineteen cents($4.19). (3) Distribution facilities charge,per kilowatt-hour:One and twelve one-hundredths cents($0.0112). (4) Energy charge, per kilowatt-hour: One and eighty-six one-hundredths cents ($0.0186). (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. Section 3. That Section 26-466(c)of the Code of the City of Fort Collins is hereby amended to read as follows: See. 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). 2 I 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: Four and fourteen one- hundredths cents($0.0414). b. Next five thousand (5,000) kilowatt-hours: One and ninety-five one- hundredths cents($0.0195). C. All additional kilowatt-hours: Zero ($0.00). (3) Demand charge, per kilowatt: a. All kilowatts billed in excess of twenty-five(25)kilowatts:Seven dollars and twenty-four cents ($7.24). (4) Distribution facilities charge, per kilowatt-hour: One and forty-two one- hundredths cents($0.0142). (5) Energy charge, per kilowatt-hour: One and eighty-six one-hundredths cents ($0.0186). (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. Section 4. That Section 26-467(c)of the Code of the City of Fort Collins is 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.). An additional charge of forty dollars and zero cents ($40.) may be assessed if telephone communication service is not provided by the customer. (2) Coincident demand charge, per kilowatt: Thirteen dollars and twleve cents ($13.12) but not less than one cent($.01) per kilowatt-hour. -3- 1 (3) Distribution facilities demand charge, per kilowatt: Four dollars and thirty-one cents($4.31). (4) Energy charge, per kilowatt-hour: One and eighty-six one-hundredths cents ($0.0186). (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. Section 5. That Section 26-468(c)of the Code of the City of Fort Collins is hereby amended to read as follows: Sec. 26468. 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 forty dollars and zero cents ($40.) for each metering point may be assessed if telephone communication service is not provided by the customer. (2) Coincident demand charge, per kilowatt: Twelve dollars and ninety-two cents ($12.92)but not less than one cent($0.01)per kilowatt-hour. (3) Distribution facilities demand charge, per kilowatt: a. First seven hundred fifty (750) 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 eighty-three one-hundredths cents ($0.0183). (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. -4- I Section 6. That Section 26-469(b)of the Code of the City of Fort Collins is 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-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 seventy-six cents ($15.76). b. Two-hundred-fifty-watt: Eighteen dollars and fifty-six cents($18.56). C. Four-hundred-watt: Twenty-four dollars and thirty-three cents($24.33). (2) Charge per lamp, high-pressure sodium: a. Seventy-watt: Six dollars and sixty-six cents($6.66). b. One-hundred-watt: Nine dollars and forty-two cents($9.42). C. One-hundred-fifty-watt: Fourteen dollars and ninety cents($14.90). d. Two-hundred-fifty-watt: Nineteen dollars($19.00). e. Four-hundred-watt: Twenty-five dollars and ten cents ($25.10). Section 7. That Section 26-470 of the Code of the City of Fort Collins is 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-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 eighty-six one-hundredths cents($0.0486). -5- 1 (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. Section 8. That the amendments to Chapter 26 of the City Code contained herein shall go into effect for all bills issued with meter readings on or after January 1, 2009. Introduced,considered favorably on first reading,and ordered published this 7th day of October, A.D. 2008, and to be presented for final passage on the 21st day of October, A.D. 2008. ayor " ATTEST: Chief Deputy City Clerk Passed and adopted on final reading on the 21 st day of October, A.D. 2008. Mayor ATTEST: City Clerk -6- r ORDINANCE NO. 113, 2008 OF THE COUNCIL OF THE CITY OF FORT COLLINS AMENDING CHAPTER 26 OF THE CODE OF THE CITY OF FORT COLLINS TO REVISE ELECTRIC DEVELOPMENT FEES AND CHARGES 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 City Council has determined that it is appropriate for new development to contribute its proportionate share of providing capital improvements; and WHEREAS, Section 26-471 of the City Code requires that the electric development fees be reviewed annually by the City Manager and that the fees be presented to the City Council for approval no less than annually; and WHEREAS,the City Manager and staff have recommended to the City Council the following adjustments to the electric development fees and charges for all billings issued on or after January 1, 2009; and WHEREAS, based on the foregoing, it is the desire of the City Council to amend Chapter 26 of the City Code to revise electric development fees and charges. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows: Section 1. That Sections 26-472 (b) and (c) of the Code of the City of Fort Collins is hereby amended to read as follows: (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. Four and nine hundred nineteen thousandths cents ($0.04919) per square foot of developed site square footage,including all applicable tracts but excluding the area dedicated public rights-of-way; and b. Nine dollars and seventy-seven cents ($9.77) 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-amp service (nonelectric heat), one thousand two hundred sixty-two dollars ($1,262) per dwelling unit; b. For single-family panel size with two-hundred-amp service (nonelectric heat or electric heat), two thousand one hundred forty- three dollars ($2,143) per dwelling unit; C. For multi-family panel size with one-hundred-fifty-amp service (nonelectric heat), eight hundred forty-two dollars ($842) per dwelling unit; d. For multi-family panel size with two-hundred-amp service (nonelectric heat or electric heat), one thousand five hundred five dollars ($1,505) 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 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 Charge(up to 65 feet) Plus Per-Foot Charge For Each Foot Over 65 Service Size 1/0 service $658.00 $4.80/Foot 4/0 service 817.00 5.76/Foot 350 kCM service 903.00 7.26/Foot 1/0 mobile home 514.00 N/A service 4/0 mobile home 644.00 N/A service -2- (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 2. That Section 26-473 (b) and (c) of the Code of the City of Fort Collins is hereby amended to read as follows: (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. Four and nine hundred nineteen thousandths cents ($0.04919) per square foot of developed site square footage, including all applicable tracts but excluding the area of dedicated public rights-of-way; and b. Thirty-seven dollars and sixty-four cents ($37.64) per lineal foot of the developed site abutting a dedicated street or roadway. (2) The service entrance charge shall be fifty-seven dollars and seventy-seven cents($57.77)per kilovolt-amp(kVA)of service entrance rating for Utility- owned transformers and forty-eight dollars and forty-four cents($48.44)per kVA of service entrance rating for customer-owned transformers. (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 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 Subsection(a) of this Section. 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 eight dollars and ninety cents ($8.90) per foot of primary circuit; -3- I b. For three-phase service,a charge of nineteen dollars and twelve cents ($19.12) per foot of primary circuit. (2) The transformer installation charge shall be as follows: a. For single-phase service,a charge of one thousand two hundred fifty- seven dollars ($1,257.) per transformer; b. For three-phase service, a charge of two thousand three hundred thirty-five dollars ($2,335.) 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. Section 3. That the amendments to Chapter 26 of the City Code contained herein shall go into effect for all bills issued on or after January 1, 2009. Introduced, considered favorably on first reading, and ordered published this 7th day of October, A.D. 2008, and to be presented for final passage on t st day of October, A.D. 2008. d Mayor ATTEST: ;4 Chief Deputy City Clerk Passed and adopted on final reading on the 21st day of October, A.D. 2008. Mayor ATTEST: City Clerk -4-