HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 10/17/2006 - ITEMS RELATING TO UTILITY RATES AND CHARGES FOR 20 ITEM NUMBER: 23 A-D
AGENDA ITEM SUMMARY DATE: October 17, 2006
FORT COLLINS CITY COUNCIL STAFF: Michael B. Smith
Terri Bryant
SUBJECT
Items Relating to Utility Rates and Charges for 2007.
RECOMMENDATION
Staff recommends adoption of the Ordinances on First Reading.
FINANCIAL IMPACT
The Ordinances are projected to increase annual operating revenues by 5%for the Wastewater Fund
and 3% for the Water Fund. No increases are proposed for the monthly electric and stormwater
rates. The combined utility fees for a typical single family residence will increase 1.4% or $1.41
from$103.54 to $104.95 per month for average winter water use and 2.3% or$3.27 from$140.02
to $143.29 per month for average summer water use.
The Wastewater Fund will increase plant investment fees to implement the second phase of the
adopted three-year phase-in plan. Electric development fees are updated annually to cover the costs
for commercial and residential developments. There are no recommended changes to the water and
stormwater plant investment fees in 2007.
The proposed fees will be effective January 1, 2007.
EXECUTIVE SUMMARY
A. First Reading of Ordinance No. 173,2006,Amending Chapter 26,Article III,Division 4 of
the Code of the City of Fort Collins Relating to User Rates and Charges for Water.
B. First Reading of Ordinance No. 174,2006,Amending Chapter 26, Article IV,Division 4 of
the Code of the City of Fort Collins Relating to Wastewater Rates and Charges.
C. First Reading of Ordinance No. 175,2006,Amending Chapter 26,Article VI,Division 4 of
the Code of the City of Fort Collins Relating to Electric Development Fees and Charges.
D. First Reading of Ordinance No. 176, 2006, Amending Chapter 26, Article I & XII of the
Code of the City Of Fort Collins Relating to Utility Bills and Notices and Administrative
Regulations for Billing and Collection.
October 17, 2006 -2- Item No. 23 A-D
• Two of the Ordinances establish Utilities monthly water and wastewater rates for 2007 as
follows:
% Increase
Water 3
Wastewater 5
The water and wastewater increases will be "across the board" and do not vary by customer class.
In total,a typical residential customer's bill,charges for electric,water, wastewater and stormwater
will increase$1.41 in winter when water usage is low and$3.27 in the summer when water is used
for irrigation.
• Two Ordinances also make changes in development fees as follows:
The second phase of the wastewater plant investment fees (PIFs) will be implemented January 1,
2007 to comply with Council's direction to phase such fees in over a three year period.
Electric development fees and charges are reviewed and updated annually to capture the costs
associated with providing capital improvements to new development.
• Other changes addressed in the Ordinances are as follows:
In response to customer demand for the convenience of online bill payments,staff is recommending
a modification to the Code to allow users an option of electronic delivery of utility bills and notices.
The water and wastewater Ordinances each include a new section of Code to expressly authorize
the Utilities General Manger to enter into agreements to provide special services beyond those
required for basic service. The new Code provision requires that a written agreement establishing
charges which modify those in the Code be approved by the City Council pursuant to Section 6 of
Article XII of the City Charter.
Other minor housekeeping changes and clarifications are also included in the ordinances.
BACKGROUND
WASTEWATER
Monthly Rates
This Ordinance increases the City's wastewater rates by 5%. The increase is applied "across the
board" for all customers. With the proposed rate, a typical single family residential customers'
monthly bill will increase from $18.76 to $19.70 or $0.94 per month. This is based on a system
average of 5,200 gallons per month winter quarter water use. The wastewater rate increase is needed
to generate sufficient revenue to meet the utilities obligations for operations,maintenance and debt.
Wastewater revenues have consistently lagged projections due to reductions in water consumption
in response to the drought. As shown in the graph below, the City's wastewater rates remain
comparable to those of other local utilities.
October 17, 2006 -3- Item No. 23 A-D
Ft.Collins Wastewater Rate Comparisons
WQA 5,200 gallons
m
E
0
$30
c1
$22.60
A
d $20 $17.43 $17.67 $17.7a $78.28 $18.76 $78.70 $20.00
$10.14
.o2 $10
t
r
e
0
E $-
�o� 0bo A��'
Q �J Gr C4� �J ,per o ��,• C� 4 6
40
Plant Investment Fees
A 2005 study of the sewer plant investment fees recommended a 174% increase in development
fees. Due to the magnitude of the proposed increases, a three-year phase-in implementation was
recommended by staff and approved by Council. Ordinance No. 134,2005 was adopted and the first
phase was implemented January 1,2006. In accordance with Council's direction,the City Manager
recommends that the second phase of the fees be adopted to be effective January 1, 2007. The
adjustment in the sewer plant investment fee will increase the cost to develop a typical single family
residence from $1,626 to $2,223 or by$597.
Other
In addition,the wastewater rate ordinance includes a new section to the Code to expressly authorize
the Utilities General Manger to enter into agreements to provide special services requested by
customers that are beyond those required for basic wastewater service. The new Code provision
requires that a written agreement establishing charges which modify those in the Code be approved
by the City Council pursuant to Section 6 of Article XII of the City Charter.
WATER
Monthly Rates
The water rate increase is needed to fund the operations and maintenance of the City's water system.
Water revenues have yet to stabilize due to prior years' weather fluctuations and changing rate
structures. After much discussion and Council input on single family and duplex water rates, the
four-tier water rate was discontinued and a three-tier water rate was adopted in March 2006 and
implemented in May 2006. At that time,the majority of Council felt strongly about retaining a$12
fixed cost charge. In light of that, the proposed increase for single family and duplex water rates
will not be applied to the$12 fixed charge. Maintaining the$12 fixed charge will shift that portion
October 17, 2006 -4- Item No. 23 A-D
of the increase which would have been applied to the fixed charge to the volume charge for single
family and duplex rates. A typical residential customer's monthly water bill will increase from
$22.09 to $22.56 for 5,000 gallon usage and from $58.57 to $60.90 for 21,000 gallon usage; an
increase of$0.47 and$2.33, respectively.
In addition, the water rate ordinance includes a new section to the Code to expressly authorize the
Utilities General Manger to enter into agreements to provide special services requested by customers
that are beyond those required for basic water service. The new Code provision requires that a
written agreement establishing charges which modify those in the Code be approved by the City
Council pursuant to Section 6 of Article JGII of the City Charter.
A comparison of the water rate change is shown in the table and graphs below:
Water Rate Comparison 2006 Rate to Proposed 2007 Rate
Gallons Used Proposed %
per Month 2006 Rate 2007 Rate Increase Increase
$ 12.72 $ 12.72 $ - 0.0%
1,000 $ 14.59 $ 14.69 $ 0.10 0.7%
2,000 $ 16.47 $ 16.66 $ 0.19 1.2%
3,000 $ 18.34 $ 18.63 $ 0.29 1.6%
4,000 $ 20.21 $ 20.59 $ 0.38 1.9%
5,000 $ 22.09 $ 22.56 $ 0.47 2.1%
6,000 $ 23.96 $ 24.53 $ 0.57 2.4%
7,000 $ 25.83 $ 26.50 $ 0.67 2.6%
10,000 $ 32.29 $ 33.29 $ 1.00 3.1%
13,000 $ 38.75 $ 40.08 $ 1.33 3.4%
16,000 $ 46.19 $ 47.89 $ 1.70 3.7%
20,000 $ 56.10 $ 58.30 $ 2.20 3.9%
21,000 $ 58.57 $ 60.90 $ 2.33 4.0%
25,000 $ 68.48 $ 71.32 $ 2.84 4.1%
30,000 $ 80.87 $ 84.33 $ 3.46 4.3%
35,000 $ 93.25 $ 97.35 $ 4.10 4.4%
40,000 $ 105.64 $ 110.37 $ 4.73 4.5%
50,000 $ 130.41 $ 136.40 $ 5.99 4.6%
75,000 $ 192.34 $ 201.49 $ 9.15 4.8%
100,000 $ 254.27 $ 266.57 $ 12.30 4.8%
150,000 $ 378.13 $ 396.74 $ 18.61 4.9%
200,000 501.99 526.91 24.92 5.0%
October 17, 2006 -5- Item No. 23 A-D
Residential Water Rate Comparison
Scale 1 to 200,000 Gallons per Month
$600
$500
L $400 r
e ✓
O A
0 $300 �A
a
v $200
$100
$- p p p
N a (00 coO N V O W O
N
1,000 Gallons per Month
— —2006 Rate 2007 Proposed Rate
Residential Water Rate Comparison
Scale 1 to 20,000 Gallons per Month
$70
$60
r $50
c
2 $40
g $30
U $20
$10
$-
0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
1,000 Gallons per Month
—�2006 Rate —2007 Proposed Rate
October 17, 2006 -6- Item No. 23 A-D
The following table summarizes the impact of the proposed rate increases on a typical single family
residential customer's monthly utility bill. In total,this"typical"customer's utility bill will increase
from$1.41 per month in the winter and$3.27 in the summer depending on water use.
Typical Residential Customer—Monthl Utility Bill
Current Proposed $ %
2006 2007 Increase Increase
Electric
700 kWh per month $48.43 $48.43 $0.00 0.0%
Wastewater
5,200 gallons/month $18.76 $19.70 $0.94 5.0%
winter quarter use
Stormwater
8,600 sq.ft. lot, light runoff $14.26 $14.26 $0.00 0.0%
Water
January 5,000 gallons $22.09 $22.56 $0.47 2.1%
July 21,000 gallons $58.57 $60.90 $2.33 4.0%
Total Monthly Utility Bill $103.54 $104.95 $1.41 1.4%
July Water Use $140.02 $143.29 $3.27 2.311/o
October 17, 2006 -7- Item No. 23 A-D
The following chart compares water rates among front range cities at 5,000 gallons and 21,000
gallons per month:
Water Rate Comparison
Average Residential Use January &July
$100 „ R
w
E � $ »
$80
O m
A $60
a
q Y N
C A N
sCO $ee M N » N
M N
N
$0
u&
4a
Q � ��, �c�e
CP
Qw
®Avg Jan.5,000 Gal. E Avg July 21,000 Gal.
October 17, 2006 -8- Item No. 23 A-D
The following charts compare water,wastewater,stormwater,and electric utility costs for eight front
range cities. It includes the recommended 2007 increases for water and wastewater for Fort Collins.
Projected rate adjustments for the other cities are unknown at this time.
Residential Utilities 200612007 Rate Comparison
January Water Use-6,000 Gallons
$140
$120
$100
§o° $ae
s
g seo
$20
Longmont LovelmW Denwr0(W) Calling Gnmis FL Collins' a� (
FL Colline'07 Windso(XCr
Estomwwter S11A2 $10.38 $7.40 $• $4.30 $14se WN $14.26 "a
pWgtmMW $17.07 $1828 $10.14 $22.00 617AS $IV$ $17.70 $19.70 420.00
WWSW $14.86 $IL43 $14.67 $1044 $10.20 5noll $17.47 $22.56 528.94
0 FL0ok $Q82 $47.41 $6212 $515.711 UZ12 WAS UZ12 $44A3 00.80
Residential Utilities 200612007 Rate Comparison
July Water Use 21,000 Gallons
$100
$160
$140
$120
s
a $100
i
3 $80
$60
u
$40
$20
S•
Lowland Longmont Donver(XW reeleyp( FL Conine' Ft Collins'0 Co.Spre Windsor BouWar
(FVREA) (Xeel)
JoStommstal $10.38 $ $7A0 $4.30 514.26 S1/.2g S• 54.68 $$A6
OWastemme 578.26 ]$A
$10.14 $77A3 $18.76 $18.70 $22.60 $20.00 $77.78
■Water 538.38 $47.81 $61A6 $68.67 $60.80 $70.51 $91L 561.30
®Electric SITA1 $8212 582.12 S48A3 S/8A3 566.76 560.60 582.12
October 17, 2006 -9- Item No. 23 A-D
ELECTRIC
Development Fees
Electric development charges include the allocated and actual costs to the utility for each
commercial or residential development. The two components of these charges are the electric
capacity fee for the off-site electric system, and building site charge for the on-site electric costs.
The electric development charges are typically increased annually to adjust for inflation and cost
increases.
The increases in electric development fees are due primarily to the significant increases experienced
in the cost of the materials used to construct the systems A few examples of these increases are:
Submersible transformers 52% increase in four months
Primary Cable 95% increase in five months
Secondary Cable 107% increase in 21 months
Substation transformers 2003 purchase cost was $800,000
2006 market cost - $1,300,000
Padmounted Transformers 65% increase in 42 months
The following tables compare current fees with proposed fees for residential and commercial
development:
Table I- Residential Electric Development Fees
Category Charge 2006 2007 % Inc.
Per square foot $0.03625 $0.04215 16.3%
Per lineal front foot $7.36 $7.90 7.3%
ECF 150A Single $952 $1 078 13.2%
Dwelling 200A Single $1 584 $1 806 14.0%
Unit 150A Multi $635 $719 13.2%
200A Multi $1 111 $1 267 14.0%
1/0 $436 $585 34.2%
Secondary 4/0 $573 $756 31.9%
BSC Service 350 $639 $732 14.6%
1/0 mobile $326 $458 40.5%
4/0 mobile $448 $593 32.4%
October 17, 2006 -10- Item No. 23 A-D
Table 2—Non-Residential Development Fees
Category Charge 2006 2007 % Inc.
Per square foot $0.03625 $0.04215 16.3%
Per lineal front foot $26.87 $29.83 11.0%
208V 1-ph $830 $946 13.9%
ECF Service 240V 1-Ph $957 $1 091 14.0%
Entrance 208V 3-Ph $1 437 $1 638 14.0%
ampss))(per 240V 3-Ph $1,658 $1 890 14.0%
480V 3-Ph $3 316 $3 779 14.0%
Primary Circuit 1- h $6.51 $7.20 10.6%
BSC Primary Circuit 3- h $11.13 $13.10
Transformer Installation 1- h $1146 1 $1119 2.4%
Transformer Installation 3- h 1 806 $2,097 16.1%
UTILITY BILLING
In an effort to respond to customer demands, the Utilities is anticipating implementing intemet
online bill payments. A proposed modification to the definition of utility bill and mailing addres
s
will allow the Utility the flexibility to meet customer billing expectations.
In addition, the ordinance permits the establishment of administrative policies for adjusting billed
amounts as necessary to correct errors and to facilitate a reasonable means by which to administer
adjustments efficiently and equitably.
The proposed increases will be reviewed by the Water Board and Electric Board before second
reading. All increases are proposed to be effective on January 1, 2007.
ORDINANCE NO. 173 , 2006
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 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 Manager has recommended to the City Council that the following
water use rates be imposed for the billing year beginning January 1 , 2007 ; and
WHEREAS , in some instances it is beneficial for Utilities to enter into agreements with
customers to outline the details of complex service agreements or to provide special services
requested by customers that are beyond those required for basic water service; and
WHEREAS , the City Manager has recommended that the City Code be amended to expressly
authorize the General Manager to enter into such special arrangements through a written agreement
between Utilities and the customer.
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT
COLLINS as follows :
Section 1 . That Section 26- 119 ofthe Code ofthe City ofFort Collins is hereby amended
to read as follows :
Sec. 26-119. Charges in event of meter failure.
If any meter should fail to properly register a customer's water use in any billing
period, the user shall be charged according to the average quantity of water used by
such customer in a similar period as shown by the meter when in order performing
properly. In the case of a discrepancy between the readings at the remote readout
and the head of the meter, the amount of water registered at the head of the meter
governs . Additional charges or customer refunds related to a meter or meter read out
malfunction may be made in accordance with the administrative policies adopted by
the Utilities .
Section 2 . That Section 26- 118 of the Code of the City of Fort Collins is hereby amended
to read as follows :
Sec. 26427. Schedule B, meter rates.
(a) Residential Rates .
( 1 ) Residential customers with one (1) dwelling unit.
a. Base Charge. Residential customers with one ( 1 ) dwelling unit shall
pay a base monthly charge of twelve dollars ($ 12 .) .
b . Quantity Charge. Residential customers with one ( 1 ) dwelling unit
shall pay a monthly quantity charge as follows :
For the first seven thousand (7 ,000) gallons used per month, a charge
of one dollar and -six and seven-tei eighty-five and seven-
tenths cents ($ f . 767$ 1 . 857) per one thousand ( 1 ,000) gallons .
For the next six thousand (6,000) gallons used per month, a charge of
two dollars and thTee and two-tenthsthirteen and five-tenths cents
($2 . 032$2 . 135 ) per one thousand ( 1 ,000) gallons .
For all additional gallons used per month, a charge of two dollars and
thirty-three - forty-five and six-tenths cents ($2 . 337
$2 .456) per one thousand ( 1 ,000) gallons .
(2) Residential customers with two (2) dwelling units.
a. Base Charge. Residential customers with two (2) dwelling units
shall pay a base monthly charge of fourteen dollars and sixty-three
cents ($ 14 . 63) .
b . Quantity Charge. Residential customers with two (2) dwelling units
shall pay a monthly quantity charge as follows :
For the first nine thousand (9 ,000) gallons used per month, a charge
of one dollar and -six and seven-te eighty-five and seven-
tenths cents ($1—. 767$ 1 . 857) per one thousand ( 1 ,000) gallons .
For the next four thousand (4,000) gallons used per month, a charge
of two dollars and three and two-tenthsthirteen and five-tenths cents
($2 . 032$2 . 135 ) per one thousand ( 1 ,000) gallons .
For all additional gallons used per month, a charge of two dollars and
2
thirty-thTee - forty-five and six-tenths ($2.33-7 $2 .456)
per one thousand ( 1 ,000) gallons .
(3 ) Residential customers with more than two (2) dwelling units.
a. Base Charge. Residential customers with more than two (2) dwelling
units shall pay a base monthly charge of twelve dollars and thirty-six
cents ($�$ 12 . 36) for the first dwelling unit and four dollars and
twelve cents ($ . $4. 12) for the second and each additional dwelling
unit.
b . Quantity Charge. Residential customers with more than two (2)
dwelling units shall pay a monthly quantity charge of one dollar and
seventy-four - seventy-nine and four-tenths cents
($i . 74-2 $ 1 . 794) per one thousand ( 1 ,000) gallons used in the winter
season months of November through April . They shall pay a
monthly quantity charge of two dollars and seventeen and eight-
tenthsce twenty-four and three-tenths cents ($2 . f 78 $2 .243 ) per one
thousand ( 1 ,000) gallons used in the summer season months of May
through October. The meter reading date shall generally determine
the seasonal monthly quantity charge ; however, no customer shall be
billed more than six (6) full billing cycles at the summer quantity
charge .
(b) Nonresidential Rates.
( 1 ) Base charge. Nonresidential customers shall pay a base monthly charge
based on meter size as follows :
Meter Size (inches) Monthly Base Charge
3 /4 $ f 0 . 64 $ 10 . 96
1 -29 , 69 30 . 58
1 '/Z 80 , 73 83 . 15
2 f2f . 66 125 . 31
3 185 , 56 191 . 13
4 29f . 31 300 . 05
6 665 , f f 582 . 06
8 998 , 32 11028 ,27
(2) Quantity charges. Nonresidential customers shall pay a monthly quantity
charge of one dollar and forty--eightfifty-two and four-tenths cents ($1-.48-
$ 1 . 524) per one thousand ( 1 ,000) gallons used in the winter season months
of November through April. They shall pay a monthly quantity charge of
one dollar and ninety and six-tenths cents ($f$5$ 1 . 906) per one
3
thousand ( 1 ,000) gallons used in the summer season months of May
through October. The meter reading date shall generally determine the
seasonal monthly quantity charge, however, no customer shall be billed
more than six (6) full billing cycles at the summer quantity charge .
(3 ) Charges for excess use. Monthly water use in excess of the amounts
specified in the following table shall be billed at two dollars and twelve an
nineteen and one-tenth cents ($2 F27$2 . 191 ) per one thousand
( 1 ,000) gallons used in the winter season months of November through
April . Monthly water use in excess of the amounts specified below shall
be billed at two dollars and -five and nine-ten seventy-three and
nine-tenths cents ($2 . 659$2 . 739) per one thousand ( 1 ,000) gallons used in
the summer season months of May through October. The meter reading
date shall generally determine the seasonal billing excess quantity charge;
however, no customer shall be billed more than six (6) full billing cycles
at the summer excess quantity charge .
Meter Size (inches) Specified Amount
(gallons per month)
3/4 100,000
1 3009000
1lh 62500
2 1 ,200,000
3 114001000
4 215005000
(c) Service outside the City. The monthly charge for water taken through a
meter by a user outside the City limits shall be the same as for like service within the
City limits as specified in Subsections (a) and (b) of this Section.
(d) Rates by special water services agreement. The rate structure and
associated charges for water service pursuant to a special water services agreement
approved by the City Council pursuant to § 26- 130 shall be as set forth in said
agreement.
Section 3 . That a new Section 26- 130 is hereby added to the Code of the City of Fort
Collins to read as follows :
4
Sec. 26- 130. Agreements for special water services.
Special services or complex service arrangements that are beyond those required
for basic water service may be arranged by a written services agreement which the
General Manager may negotiate and enter into on behalf of the water utility. Said
agreement shall establish the terms and conditions for any such special services or
arrangements and shall incorporate by reference the requirements of this Chapter, as
applicable. Any special services agreement modifying the rates, fees or charges for
said services from those set forth in this Article shall be subject to approval by the
City Council in accordance with § 6 of Article XII of the Charter.
Section 4 . That the amendments to Chapter 26 of the City Code contained herein shall
go into effect on January 1 , 2007 and will be effective on all utility bills where the meter reading is
made on or after January 1 , 2007 .
Introduced, considered favorably on first reading, and ordered published this 17th day of
October, A.D . 2006 , and to be presented for final passage on the 7th day of November, A.D . 2006 .
Mayor
ATTEST :
City Clerk
Passed and adopted on final reading on the 7th day of November, A.D . 2006 .
Mayor
ATTEST :
City Clerk
5
ORDINANCE NO. 174, 2006
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 WASTEWATER RATES AND 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 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 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 , 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 , 2007 ; and
WHEREAS , Section 26-283 of the City Code provides that the rates and parameters of the
sewer plant investment fees be reviewed annually by the City Manager and be presented to City
Council for approval no less frequently than biennially; and
WHEREAS , a study of the sewer plant investment fees was conducted in 2005 which
recommended an increase in plant investment fees of 174%; and
WHEREAS , in light of the magnitude of those proposed increases, City Council determined
in 2005 to buffer the impact of the fees by phasing them in over a three year period; and
WHEREAS , the first phase of the new fees was adopted by Ordinance 134, 2005 and was
effective January 1 , 2006, and
WHEREAS , in accordance with Council ' s earlier direction, the City Manager now
recommends that the second phase of the fees be adopted to be effective January 1 , 2007 ; and
WHEREAS , in some instances it is beneficial for Utilities to enter into agreements with
customers to outline details of complex service arrangements or to provide special services requested
by customers that are beyond those required for basic wastewater service; and
WHEREAS , the City Manager has recommended that the City Code be amended to expressly
authorize General Manager to enter into such special agreements through a written agreement
between the Utilities and the customer.
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT
COLLINS as follows :
Section 1 . That paragraph (c) of Section 26-279 of the Code of the City of Fort Collins
is hereby amended to read as follows :
Sec . 26-279. Service charges ; categories.
(c) The rate determination by category is as follows :
( 1 ) If there is no water meter, Tthe rate for Categories A and B shall be a flat
rate representative of the actual cost of serving a typical user in each of
these categories .
(2) If water use is metered, Tthe rate for Categories A and B and the rate for
Category C shall be based on winter quarter water use in accordance with
the following formula:
Cu = VuC
Where :
Cu = Users charge per billing period
Vu = Volume of winter quarter water use
C = A charge per unit volume of water used based upon the cost
of service per unit volume of normal, domestic-strength
wastewater
The user shall be charged the greater ofthis calculated amount or and the
applicable base charge as set forth in § 26-280 . If any metered water
service customer connects to the wastewater utility or makes a change in
the use of the premises or substantially expands such premises , the General
Manager shall make an estimate of the water consumption on such
premises during an average winter month based upon a count of plumbing
fixtures, consumption of similar customers or other information relevant to
such determination and such estimate when made shall be the basis for the
wastewater service charge until the actual winter use for the premises can
be determined.
2
(3 ) In addition to the applicable base charge set forth in § 26-280, Tthe rate for
Category D shall be based upon the user's consumption of water in
accordance with the following formula:
Cu = VuC
Where :
Cu = Users charge per billing period
Vu = Volume of water used per billing period
C = A charge per unit volume of water used based upon the cost
of service per unit volume of normal, domestic-strength
wastewater
Users in eategory D are subject to a base monthly charge based on th�
of the W ater meter.
(4) In addition to the applicable base charge set forth in § 26-280, mousers in
Categories D, E and F shall be billed upon the basis of metered water
consumption except where they can show to the satisfaction of the General
Manager that not all of the water going through the water meter is returned
to the wastewater system but is instead consumed in the process or
otherwise diverted. In such cases, and with the approval of the General
Manager, the wastewater charges may be based upon one ( 1 ) of the
following methods : (a) a metering device of a type and installed in a
manner approved by the General Manager may be used to measure the
quantity of wastewater returned to the public sewer and the actual volume
of wastewater discharged will be substituted in the formula for billing
purposes ; or (b) when the user discharges only wastes reasonably and
regularly corresponding to winter quarter water use, said winter quarter
water use may be substituted in the formula for billing purposes . Any
metering device used to measure wastewater shall be installed and
maintained at the user's expense .
Users . n eategory D , E and F are s* ect to a base monthly charge base
on the size of the water meter.
(5 ) The rate for users in Category G shall be as set forth in § 26-280 .
(6) The rate for users in Category H shall be determined by negotiation with
the party concerned. However, the rate shall be based upon cost of service
and shall not be less than that of in-City users and shall include any
wastewater strength surcharges .
Sec . 26-280. Service charges established by category.
3
The schedule of rates for each category described in § 26-279 shall be as follows :
Category Class of Customer Rate
Single-family residential user (flat $+%6920.67 per month
A rate)
Single-family residential user $8-.699. 12 per month plus $ 1 .733 1 . 820per 1 ,000
(metered water use) gallons of either winter quarter water use or 3,000
gallons, whichever is greater
B Duplex (two-family) residential $31 .2332.79 per month
users (flat rate)
Duplex (two-family) residential $ 11 .3912. 17 per month plus $ 1 .7331 . 820 per 1 ,000
users (metered water use) gallons of either winter quarter water use or 4,000
gallons, whichever is greater
C Multi-family residential user (more $ 1 .7331 . 820 per 1 ,000 gallons of winter quarter water
than two dwelling units including use, plus a base charge of $i :571 .44 per month per
mobile home parks) and winter dwelling unit served
quarter based nonresidential user
D Minor nonresidential user $ 1 .7331 . 820 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 meter (inches) Base charge
3/4 or smaller $-5+56. 14
1 +3- 6+14.03
11/2 2-.0528.40
2 46-.2'747. 53
3 q6-.2278.98
4 +26-3-2132.64
6 6i9-.3-3650.30
8 672-.5f706. 14
E and F Intermediate nonresidential and $ 1 .7331 . 820 per 1 ,000 gallons of water use, measured
Significant industrial user wastewater flow or winter quarter water use,
whichever is applicable; plus a surcharge of
$ 1 .6611 .744 per million gallons for each milligram per
liter of suspended solids in excess of 250 milligrams
per liter; plus a surcharge of $ 1 .3941 .464 per million
gallons for each milligram per liter of BOD in excess
of 200 milligrams per liter or a surcharge of
$9-8600.903 per million gallons for each milligram per
liter of COD in excess of 300 milligrams per liter, or a
surcharge of $2.4962.621 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+66. 14
1 13.3614.03
4
11 /2 2q-.0528.40
2 45—.2'747.53
3 75.-2278.98
4 120.32132.64
6 619.33650.30
8 672.51706. 14
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- 130 shall be set forth in said
agreement.
Section 3 . That paragraph (a) of Section 26-282 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 ofwastewater strength surcharge for customers located either
inside or outside the city limits shall be as follows :
Excess over Rate per
Parameter (mg/l) 11 000 gallons
BOD 200 $ 0 . 06f $0 , 001464
COD 300 0 . 0009fr@ 0 , 000903
TOC 100 0 . 00-2 0 , 002621
TSS 250 0 . 09f66f 0 . 001744
Section 4. That paragraphs (a) and (d) of Section 26-282 of the Code of the City of Fort
Collins is hereby amended to read as follows :
Sec . 26-284. Sewer plant investment fees and surcharges established.
(a) The schedule of sewer plant investment fees, subject to the exceptions and
additional requirements provided in this Section, is as follows :
5
Category SPIF
A $i62-6 $2 ,223
B and C $�2$7 $ 1 ,583 for each
dwelling unit or mobile
home space
Category Water meter size
(inches) Fee
D, E, F 3/4 $31627 $41749
1 9-1� 12 , 151
1 %z f 71660 211965
2 285633 381865
3 591850 811086
4 and above Calculated on an individual
basis based on peak
wastewater flow (determined
in the manner set forth
hereinafter) but not less than
the charge for a three-inch
meter
G Same as equivalent category, plus any special
sanitation district fees .
H Determined pursuant to paragraph (d) of this
Section.
(d) The amount of the plant investment fee and surcharge for each
nonresidential surcharged user, users in Category H and any user that is expected to
generate greater than its proportionate share of peak day flow at the treatment plant
for the applicable category (including both contributed wastewater volume and
volume related to infiltration and inflow), shall be calculated utilizing the following
formula:
SPIF = Flow x [Flow$ + (BOD x BOD,) + (TSS x TSS$)]
Where :
SPIF = Plant investment fee for Category H users and users discharging
wastewater with average concentrations of BOD and/or TSS which
exceed those average concentrations which are set forth in § 26-
282(b) under Category E-34
6
Flow = The user's proportionate share of peak day flow at the treatment plant
including both contributed wastewater volume and volume related to
infiltration and inflow
Flow$ _ $3 . 54$3 . 59 per gallon (unit cost of facilities attributable to treating
wastewater flow)
BOD = Average BOD concentration for user category or measured BOD
concentration for the user as determined in accordance with
Subsection (c) of this Section, but not less than 200 mg/l
BODs = $0:0063 $0 . 0078 per mg/1 (unit cost of facilities attributable to
treating BOD)
TSS = Average TSS concentration for user category or measured TSS
concentration for the user as determined in accordance with
Subsection (c) of this Section, but not less than 250 mg/l
TSS$ _ $0 . 6957$0 . 0062 per mg/l (unit cost of facilities attributable to
treating TSS)
(e) The plant investment fee and surcharge for users in Categories D, E, F and
G shall be the greater of that calculated utilizing the formula set forth in Subsection
(d) of this Section or the plant investment fee for the applicable water meter size set
forth in Subsection (a) of this Section.
(f) For purposes of this Section, the proportionate share of peak day flow at the
treatment plant for users in categories D, E and F shall be deemed to be :
Water meter size Peak flow (gallons per day)
(inches)
3/4 5-5-0 709
1 +�+H 15814
1 '/2 z 6 39279
2 5 5 , 802
3 9-1� 12, 105
4 and greater Calculated on an individual
basis based on user ' s
proportionate share of peak day
flow at the treatment plant
(including both contributed
wastewater volume and volume
related to infiltration and
inflow) but not less than the
peak day flow for a three-inch
meter
7
Section 5 . That a new section is hereby added to the Code of the City of Fort Collins to
be numbered as Section 26-290 and it shall read as follows :
Sec. 26-290. Agreements for special wastewater services .
Special services or complex service arrangements that are beyond those required
for basic wastewater service may be arranged by a written services agreement which
the General Manager may negotiate and enter into on behalf of the wastewater
utility. Said agreement shall establish the terms and conditions for any such special
services or arrangements and shall incorporate by reference the requirements of this
Chapter, as applicable . Any special services agreement modifying the rates, fees or
charges for said services from those set forth in this Article shall be subject to
approval by the City Council in accordance with § 6 of Article XII of the Charter.
Section 6 . That the amendments to Chapter 26 of the City Code contained herein shall
go into effect on January 1 , 2007 .
Introduced, considered favorably on first reading, and ordered published this 17th day of
October, A.D . 2006 , and to be presented for final passage on the 7th day of November, A.D . 2006 .
Mayor
ATTEST :
City Clerk
Passed and adopted on final reading on the 7th day of November, A.D . 2006 .
Mayor
ATTEST :
City Clerk
8
ORDINANCE NO. 175 , 2006
OF THE COUNCIL OF THE CITY OF FORT COLLINS
AMENDING CHAPTER 26, ARTICLE V, DIVISION 4
OF THE CODE OF THE CITY OF FORT COLLINS
RELATING TO ELECTRIC DEVELOPMENT FEES AND 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 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 shall 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 , 2007 ; 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 ; and
WHEREAS , in order to conform Code language in the electric service provisions to the
language being added in other articles in Chapter 26 by companion utility rate ordinances, and to
the City Charter, the Ordinance modifies various Code sections regarding special electric services
by agreement; and
WHEREAS , the Ordinance further includes additional revisions intended to reorganizing
certain portions of the article related to electric service and to add general language regarding review
of rates consistent with the existing Code language regarding the other utilities .
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT
COLLINS as follows :
Section 1 . That Section 26-463 of the Code of the City of Fort Collins is hereby
renumbered as Section 26-398 , moved from Division 4 of Article VI of Chapter 26 to Division 1 of
Article VI, and amended to read as follows :
Sec. 26-398. Electric sservice; general service rules and regulations.
(a) The rules and regulations applicable to electric service and persons
receiving electric service from the City shall be such rules and regulations as are
adopted by the General Manager and approved by ordinance of the City Council.
(b) Upon such adoption and approval, all such rules and regulations shall be
in full force and effect and shall apply to any person, corporation or other entity
receiving electric service from the City.
Section 2 . That a new Section 26-399 of the Code of the City of Fort Collins is hereby
added to Division 1 of Article VI of Chapter 26, to read as follows :
Sec. 24-399. Agreements for special electric services.
Special services or complex service arrangements that are beyond those required
for basic electric service may be arranged by a written services agreement, which
shall provide for the terms and conditions for any such special services or
arrangements and shall incorporate by reference the requirements of this Chapter, as
applicable, and which the General Manager may negotiate and enter into on behalf
of the electric utility. A special services agreement modifying the rates, fees or
charges for said services from those set forth in this Article shall be subject to
approval by the City Council in accordance with § 6 of Article XII of the Charter.
Section 3 . That existing Section 26-462 of the Code of the City of Fort Collins is hereby
renumbered as Section 26-463 , and a new Section 26-462 is hereby added to Division 4 of Article
VI of Chapter 26, to read as follows :
Sec. 24-462. Determination of user rates ; annual adjustment.
(a) The City Manager shall analyze the operating and financial records of the
utility during each calendar year and recommend to the City Council user rates or
adjustments to be in effect for the following year.
(b) The City Manager shall base the recommendation on the actual cost of
serving each class of user including in the consideration costs of operating,
maintaining, replacing and repairing the electric utility's electric distribution system,
costs for administration, personnel and billing, capital improvement costs, the
number of users and the estimated apportionment of such costs among the users in
each class . The user charges shall be revised as necessary to assure equity of the rate
system established and assure that sufficient funds are obtained to adequately operate
and maintain the electric distribution system.
2
(c) Where not otherwise provided in this Division, in addition to the monthly
service charges set forth herein, there shall be a charge for payments in lieu of taxes
in the amount equal to six and zero-tenths (6 . 0) percent of said monthly service
charges billed.
Section 3 . That Section 26-464(i) of the Code of the City of Fort Collins is hereby
deleted:
- .
(i) Special serrices . The electric utility is authorized to provide speci-a4
serviees and eapabilifies which are beyond those required for ba3l%. 3%�I V i%A. , provided
that such speciaf services and capabilities are described in a written agrectlien
betwcen the titifity and the custonicr, which agrcement shall af so set forth the titif it
charges associated with the provision of such special services and capabilities . The
6eneral Manager shall establish the rates , fees , charges and payment terms for the
provision of snch speciat services alid capabifiti%M fn setting the rates, fees an
Manger shail set them in an amount that satisfies the applicable cost-of- service
Section 4 . That Section 26-4650 ) of the Code of the City of Fort Collins is hereby
deleted:
- .
scrvices and capabilities which arc beyond those reqnired for bam%. 3%�I V m.%. , provided
that such special services and capabilities are described in a written agreemen
between the utility and the customer, which agreement shall also set forth the titilit
charges associated with the provision of stich special services and capabilities . The
provision of such special services and capabilities . fn setting the rates, fees an
charges to be paid by the customer tinder a special se, v ices ag, eement, the 6 enerai
Manager shall set them in an amotint that satisfies the applicable cost-of--sel V ICC
Section 5 . That Section 26-466(k) of the Code of the City of Fort Collins is hereby
deleted:
3
- .
(k) Speciz7l services . The electric utifity is authorized to provide specia4
services and capabilities which arebeyondthose reqnired forbaSICm vice, provided
that such spcciaf scrvices and capabilities are dcscribcd in a written agrectilen
betwcen the utility and the customer, which agrccmcnt shall also se forth the tifilit
charges associated with the provision of such special services and capabilities . The
Eieneral Manager shall establish the mtes , fees, charges and Payment terms for th�m
provision of such spccial services alid capabififi%M fn sctfing the rates, fees an
chargcs to bc paid by the customer undcr a special mn vices agmcmcnt, the 6enerai
Manager shall set them in an amount that satisfies the applicable cost-of-- service
criteria contained in Section 6 of Article �Eff of tfic eity ehar
Section 6 . That Section 26-467(m) of the Code of the City of Fort Collins is hereby
deleted:
- .
(m) Special servires . The elcetric utility is authorized to provide sprciai
services and capabilities which are beyond those required for ba3l%� 3%�I v i%A� Iprovided
that such speciaf services and capabilities are described in a vvlflft%�11
betwcen the vtif ity and the customer, which agrectnent shall also set forth the titif it
charges associated with the provision of such special services and capabilifics . The
6eneral Manager shall establish the rates , fees , charges and payment terms for the
provision of such special services mid capabilities . in setting the rates, fees an
Nfanagcr shall se thcm in an amount that satisfies the applicabic cost-of-- serviec
Section 7 . That Section 26-468 (n) of the Code of the City of Fort Collins is hereby
deleted:
- .
that such special services and capabilities are described in a written agreement
between the tififity and the customer, which agreement shall af so set forth the utif it
scrvices and capabilities which arc beyond those rcquired for ba3l%� 3%A v ik.%. , provided
charges associated with the rrovision of sneh srecia! services and carabilities . The
Cinieral Manager shall establish the rates , fees , charges and payment terms for th�-
rrovision of such srecia! scryvices and capabiliti %� s . in setting the rates , fees an
Manager shall set themin an amumit that satisfies the applicable cost- of- service
Section 8 . That Section 26-472 (b) and (c) of the Code of the City of Fort Collins is
hereby amended to read as follows :
Sec . 26-472 . Residential electric development fees and charges
(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 two hundred fifteen
one-thousandths cents ( $6 )(0 . 04215 ) per square foot of
developed site square footage, including all applicable tracts but
excluding the area dedicated public rights-of-way; and
b . Seven dollars and thirty-six ninety cents ( $7 . 36)($ 7 . 90) 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), nine imndred fifty-twoone thousand seventy-
eight dollars ) ($ 1 ,078 .) per dwelling unit;
b . For single-family panel size with two-hundred-amp service
(nonelectric heat or electric heat) , one thousand five hundred eighty-
foureight hundred six dollars ( $ 1584 .)($ 1 , 806 . ) per dwelling unit;
c . For multi-family panel size with one-hundred-fifty-amp service
(nonelectric heat) , six imndred thirty-fiveseven hundred nineteen
dollars ) ($719 .) per dwelling unit;
5
d. For multi-family panel size with two-hundred-amp service
(nonelectric heat or electric heat), one thousand one hundred
eteventwo hundred sixty-seven dollars ) ($ 1 ,267 .) 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 follow:
( 1 ) The secondary service charge shall be as follows :
Secondary Service Size Charge (up to 65 feet) Plus Per Foot Charge For
Each Foot Over 65
1 /0 service $436 . 00 $585 , 00 $3-6-5 $4.24/Foot
4/0 service $573 . 00 $756 , 00 $4�6 $5 .46/Foot
350 kCM Service $ 639 . 00 $732 , 00 $ -.H $5 . 82/Foot
1 /0 Mobile Home Service $3 -26-00 $458 . 00 N/A
4/0 Mobile Home Service $435 . 00 $593 , 00 N/A
(2) Actual special costs to the utility of installation of secondary service
resulting from site conditions shall be included in the BSC as additional
charges . Such conditions may include, but are not limited to, frozen or
rocky soil, concrete cutting and asphalt replacement.
Section 9 . That Section 26-473 (b) and (c) of the Code of the City of Fort Collins is
hereby amended to read as follows :
Sec. 26-473 . Nonresidential electric development fees and charges.
(b) The ECF shall be the total of the site footage charge, service entrance
charge and systems modification charge, to be determined as follow:
( 1 ) The site footage charge shall be the combined total of.
6
a. Four and two hundred fifteen one-
thousandths cents ($ 0 . 04215) 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-nine dollars and eighty-
three cents ( $26 . 87) ($29 . 83 ) 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, eight
hundred nine hundred forty-six dollars ( $ 83-0.) ($946 .) per one
hundred ( 100) amps ;
b . For single-phase service at two hundred forty (240) volts, nine
fifty-sevenhundred one thousand ninety-one dollars { $9571)
($ 1 ,091 .) per one hundred ( 100) amps .
c . For three-phase service at two hundred eight (208) volts, one
thousand six hundred thirty-eight dollars
) ($ 1 ,638 .) per one hundred ( 100) amps;
d. For three-phase service at two hundred forty (240) volts, one
thousand six hundred fifty-eighteight hundred ninety dollars
($ 1 �658 .)($ 1 , 890 . ) per one hundred ( 100) amps;
e . For three-phase service at four hundred eighty (480) volts, three
thousand tIlTee hundred sixteen seven hundred seventy-nine dollars
( $3 �316) ($3 ,779 . ) 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 .
(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 :
7
a. or single-phase service, a charge of six dollars and fifty-oneseven
dollars and twenty cents ( $ 6 . 5 f )($ 7 .20) per foot of primary circuit;
b . For three-phase service, a charge of eleven dollars and thirteen
thirteen dollars and ten cents ( ) ($ 13 . 10) per foot of primary
circuit.
(2) The transformer installation charge shall be as follows :
a. For single-phase service, a charge of one thousand one hundred =
sixnineteen dollars ( $ t , f 46 .)($ 1 , 119 .) per transformer;
b . For three-phase service, a charge of one thousand eight hund
thirty-sixtwo thousand ninety-seven dollars r($2 ,097 . ) 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 10 . That the amendments to Chapter 26 of the City Code contained in Sections
8 and 9 of this Ordinance shall go into effect for all bills issued on or after January 1 , 2007 .
Introduced, considered favorably on first reading, and ordered published this 17th day of
October, A.D . 2006, and to be presented for final passage on the 7th day of November, A.D . 2006 .
Mayor
ATTEST :
City Clerk
8
Passed and adopted on final reading on the 7th day of November, A.D . 2006 .
Mayor
ATTEST :
City Clerk
9
ORDINANCE NO. 176, 2006
OF THE COUNCIL OF THE CITY OF FORT COLLINS
AMENDING CHAPTER 26, ARTICLES I AND XII OF THE CODE OF THE
CITY OF FORT COLLINS RELATING TO UTILITY BILLS AND NOTICES
AND ADMINISTRATIVE REGULATIONS FOR BILLING AND COLLECTION
WHEREAS , the City Council is empowered and directed by Article XII, Section 6, of the
Charter of the City of Fort Collins, Colorado, to provide for the collection of rates, fees or charges
for utility services furnished by the City; and
WHEREAS , Chapter 26 of the City Code requires that utility bills and notices be mailed to
the user; and
WHEREAS , new technology has made itpossible forthe City to deliver such utility bills and
notices electronically; and
WHEREAS , many users prefer the convenience of receiving their utility bills and notices
electronically and they do not desire to receive them through delivery by the Postal Service; and
WHEREAS , the delivery of a utility bill and notices via electronic mail is cost effective; and
WHEREAS , the City Manager has recommended to the City Council that the Code be
changed to allow users an option of electronic delivery of utility bills and notices ; and
WHEREAS , the monthly rates and fees established in Chapter 26 by City Council are based
on costs of providing typical or normal utility services ; and
WHEREAS , Section 26-720 of the City Code authorizes the Financial Officer to promulgate
administrative rules and regulations for the administration of utility billing and collections ; and
WHEREAS , in order to clarify that reasonable billing practices related to account
corrections, write-offs and adjustments are authorized within the scope of such rules and regulations,
staff has proposed a revision to Section 26-720 to that effect.
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT
COLLINS as follows :
Section 1 . That Section 26- 1 of the Code of the City of Fort Collins is hereby amended
to add a definition of the term "Customer" and the term "Mailing address" and to revise the
definition of the term "Utility bill" to read as follows :
Sec. 26-1 . Definitions.
Customer shall mean a user of one ( 1 ) or more city utility services in whose name
an account for related charges or other related financial responsibilities is maintained
by the Financial Officer.
Mailing address shall mean the postal address or electronic mail address that has
been provided by the customer to the General Manager, as shown in the records of
the Financial Officer, and to which all utility bills and notices to said customer shall
be sent.
Utility bill shall mean the
Administration enit which itemizes thr, chaiges for cacti titili I LY srt v p, ovided to
the custombill issued by the Financial Officer to a utility customer for utility
services furnished, charges assessed, adjusted or negotiated and payments due
thereon, late payment fees, penalties and all other sums due to the City from said
customer.
Section 2 . That Section 26- 5 of the Code of the City of Fort Collins is hereby amended
to read as follows :
Sec . 26-5. Notice requirements generally.
Unless otherwise specified, whenever notice is required to be given by the
provisions of this Chapter, it shall be in , postage
prepaid to the last known mailing address of the person to be notified as shown on
the records of the City. Service of such notice shall be effective upon the date of
mailing.
Section 3 . That Section 26-711 of the Code of the City of Fort Collins is hereby amended
to delete the definitions of the term "Owner" and the term "Utility bill" .
2
Sec. 26-711 . Definitions.
Owner includes legal representative ., "0016110 .11d successors tin interest aas- Well
as the actuaf or originaf owner of record of the property served by a city titffity:
Flifity bill shall inean the consolidated bill isstied monthly by the Financial
enstoiner by the eity.
Section 4 . That paragraph (b) of Section 26-713 of the Code of the City of Fort Collins
is hereby amended to read as follows :
Sec. 26-713 . Due date ; delinquency.
(b) Biffing for trtifity fees and charges and any other notices related to utifity
billing arc eff-ective on the date that they are depositcd in the mail addrcssed to the
last known addrcss of the uscr as shown on the records of the Financial Efficer. All
charges and fees on utility bills shall be effective as of the date mailed to the last
known mailing address of the customer, and shall be considered delinquent if
payment is not received by the City by midnight of the due date as specified on the
utility bill.
Section 5 . That subsection (e) of Section 26-718 of the Code of the City of Fort Collins
is hereby amended to read as follows :
Sec. 26-718. Unpaid charges a lien.
(e) Delinquent fees together with interest and collection costs may also be
collected by civil suit against the owner of the property served or by any other lawful
means, at any time after the charges become delinquent. The remedies provided
under this Article are cumulative and supplemental to each other.
3
Section 6 . That Section 26-720 of the Code of the City of Fort Collins is hereby amended
to read as follows :
Sec. 26420. Administrative procedures.
The Financial Officer may formulate and promulgate rules and regulations for
the administration of this Article, not inconsistent with the provisions of this Article,
with respect to the billing and collection of utility fees and charges and other matters
relating to the administration of customer accounts . Said rules and regulations may
regulate, including without limitation, the forms and procedures
for giving notice to customers ; policies for adjustmen adjusting ofbilled amounts
as necessary for correctio o correct errors or as may be reasonable due tofor
administrative efficiency or to achieve equitable considerationsequity; conduc
ofprocedures for appeals ; and procedures for the documentation of liens—, n-ot
inconsistent with the A if this Arti Any rules or regulations
promulgated by the Financial Officer hereunder shall be effective upon the Financial
Officer' s filing of the same with the City Clerk.
Introduced, considered favorably on first reading, and ordered published this 17th day of
October, A.D . 2006 , and to be presented for final passage on the 7th day of November, A.D . 2006 .
Mayor
ATTEST :
City Clerk
Passed and adopted on final reading on the 7th day of November, A.D . 2006 .
Mayor
ATTEST :
City Clerk
4