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Home My WebLink AboutCOUNCIL - AGENDA ITEM - 11/03/2009 - ITEMS RELATING TO UTILITY RATES AND CHARGES FOR 20 DATE: November 3, 2009 AGENDA ITEM SUMMARY STAFF: Brian Janonis FORT COLLINS CITY COUNCIL Ellen Switzer Items Relating to Utility Rates and Charges for 2010. A. Second Reading of Ordinance No. 113, 2009, Amending Chapter 26, Article III, Division 4 of the City Code Relating to User Rates and Charges for Water. B. Second Reading of Ordinance No. 114, 2009 Amending Chapter 26 of the City Code Relating to Wastewater Rates and Charges. C. Second Reading of Ordinance No. 116, 2009, Amending Chapter 26 of the City Code to Revise Water Plant Investment Fees. D. Second Reading of Ordinance No. 117, 2009, Amending Chapter 26 of the City Code to Revise Sewer Plant Investment Fees. E. Second Reading of Ordinance No. 118, 2009, Amending Chapter 26 of the City Code to Revise Electric Development Fees and Charges. F. Second Reading of Ordinance No. 119, 2009, Amending Chapter 26 of the City Code to Revise Stormwater Plant Investment Fees. EXECUTIVE SUMMARY Ordinance No. 113 and 114, 2009, establish monthly water and wastewater rates. Ordinances No. 116 through No. 119,2009,adopt revised water,sewer and stormwater plant investment fees and electric development fees. The fees are one-time charges paid by developers or builders for the cost of the utility infrastructure needed to serve new development. Per Council direction, plant investment fees are reviewed on an annual basis and revised during the biennial budget cycle. Plant investment fees(PIFs)for water,wastewater and stormwater were last updated with the 2008-2009 budget. Electric development fees and charges are updated annually. These Ordinances were unanimously adopted on First Reading on October 20, 2009. At the October 20, 2009 meeting, a question was asked concerning Section 26-280 of the City Code relating to wastewater flat and multi-family rates. Attached is a memo explaining those charges. STAFF RECOMMENDATION Staff recommends adoption of the Ordinances on Second Reading. ATTACHMENTS 1. Copy of First Reading Agenda Item Summary- October 20, 2009 (w/o original attachments) 2. Wastewater Flat and Multi-Family Rates memo, October 22, 2009 ATTACHMENT 1 ITEM NUMBER: 28 A-G AGENDA ITEM SUMMARY DATE: October20, 2009 FORT COLLINS CITY COUNCIL STAFF: Brian Janonis Terri Bryant SUBJECT Items Relating to Utility Rates and=6 harges1or>2010. •� RECOMMENDATION Staff recommends adoption of the Ordinances on First Reading. The Water Board reviewed the 2009-2010 Water Utilities' budgets, water, sewer and stormwater plant investment fee changes, and monthly water and wastewater rate increases at its August 27, 2009 Board meeting. The Board voted,7-2 to approve the proposed budget and rate and fee changes. The Electric Board reviewed the'20091-20.1V0 L ght an Power budget and the proposed increases to the electric rates and development fees(and 64 es.at�its meeting on September 14, 2009. The Board voted 5-1 to support the,_pr�ed1b�udg�t an oted 4�to support the proposed rate and development fee changes. FINANCIAL IMPACT The rate Ordinances are projected to increase the annual operating revenues of the Wastewater Fund by 10%,the Water Fund by 3%,and the Light and Power Fund by 9.5%. There are no rate increases to stormwater monthly rates. The combined.utility-fees for a.typical_single family residence during the high usage summer months Will increase .95 e mo th. Proposed water, wastewater an �sto water plant mvestmen fees (PIFs) are updated to reflect a new customer's impact on the system and maintain existing customers' equity in the system. 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,water,wastewater and stormwater plant investment fees,and electric development fees and charges will increase. The combined utility development fees for a typical single family residence(exclusive of raw water requirements which are not changing)will increase from$10,696 to $11,509 or 7.6%. The proposed fees will be effectiv Jeanuaryl 2010. October 20, 2009 -2- Item No. 28 A-G EXECUTIVE SUMMARY A. First Reading of Ordinance No. 113, 2009, Amending Chapter 26,Article III, Division 4 of the City Code Relating to User Rates and Charges for Water. B. First Reading of Ordinance No. 114,2009 Amending Chapter 26 of the City Code Relating to Wastewater Rates and Charges. C. First Reading of Ordinannce=Noa 115—,2009 AmendingChapter 26 of the City Code to Revise Electric Rates, Fees andlCharge r t D. First Reading of OrdinanseNo. 1 1' 6;�2009,All endmg.Chapter 26 of the City Code to Revise Water Plant Investment Fees. E. First Reading of Ordinance No. 117,2009,Amending Chapter 26 of the City Code to Revise Sewer Plant Investment Fees. F. First Reading of Ordinance No. 118,2009,Amending Chapter 26 of the City Code to Revise Electric Development Fees and Charges. G. First Reading of Ordinance No. 11'9,2009,Mndi Chap etet r 26 of the City Code to Revise Stormwater Plant Investment ent Fees. 14 Three Ordinances (A, B & C) establish monthly water, wastewater and electric rates. Four Ordinances (D, E, F, & G) adopt revised water, sewer and stormwater plant investment fees and electric development fees. The fees are one-time charges paid by developers or builders for the cost of the utility infrastructure needed to serve new development. Per Council direction, plant investment fees are reviewed on an annual basis and revised during the biennial budget cycle. Plant investment fees(PIFs)for water,wastewater and stormwater were last updated with the 2008-2009 budget. Electric development fees and charges are updated annually. lr�l 10 P Y:; BACKGROUND L/ PLANT INVESTMENT FEES (PIFs) • WATER PLANT INVESTMENT FEES The water plant investment fees are developed to recover the current value of past investment and the current value of future growth-related investment through 2040. This method includes calculating net water system equity„capacity units, and determining the net system equity per unit as follows: e` V r(T(1. The water systessets arevlued t placem cost adjusted by the construction cost index as published by Engineering News Record. October 20, 2009 -3- Item No. 28 A-G 2. The net system equity is determined by subtracting outstanding debt principal from total replacement costs and adding projected growth related to capital improvement projects. 3. The result is divided by the future total plant capacity to determine unit cost. The investment in plant increased only slightly compared to the prior study. Residential and multi- family usage characteristics remain unchanged, resulting in no recommended increase in PIFs for 2010. Commercial use characteristics increased, resulting in higher PIF charges for 2010. The following schedule details'PI' Fs for thus eustoin lases. WATER PLANT'=INVESTMENT FEES BY CUSTOMER CLASS 2009 PIFs 2010 Proposed Peak Day Current Peak Day Proposed Customer Class/Meter Size Usa e d Charge Usa e d Charge Change Residential: Single Family Inside Use 191 $ 730 191 $ 730 0% Outside Use-$/S . Ft. 864 $ 0.36 864 $ 0.36 0% Multi-Family(per unit JNf (-1 Y`l N hl \\ If Inside Use V1 1.3133 hJ Sr 490 �'{ 133 $ 490 0% Outside Use-$/S . Ft. \ / V263 /;� $l 0.27 ll 263 $ 0.27 0% Non-Residential meter size '/4 inch 1,730 $ 6,970 1,850 $ 7 530 8.0% 1 inch 5,110 $ 20,590 5,340 $ 21,730 5.5% 1 %inch 10,300 $ 41,510 11,130 $ 45,300 9.1 0 2 inch 16,210 $ 65,330 16,970 $ 69,070 5.7% 3 inch 35,370 $142,540 1 38,800 $157,920 10.8% >than 3 inches Based on specific customer requirements *differences due to rounding The impact to a typical single faini��sid�enncceerema�i��t e 2009 to of$3,826(8,600 sq.ft. lot). • WASTEWATER PLANTv1*VESJWiEN:1 FEES The wastewater plant investment fees are developed using a similar method to the water PIFs, by assessing new customers based on an allocation of the costs of the existing facilities and the projected growth-related improvements. While the gallons per day treated decreased slightly for most customer classes, the increased investment in plant resulted in increased PIFs for each customer class for 2010. r 0 P October 20, 2009 -4- Item No. 28 A-G The proposed fees are shown in the following tables: WASTEWATER PLANT INVESTMENT FEES Customer Class/Meter Size Existing 2009 Pro osed 2010 Volume Current Volume Proposed G d Charge G d Charge Change Single Family 321 $ 3,194 300 $ 3,550 11.1% Multi-Family/Per Unit 208 $ 2,069 210 $ 2,490 20.3% Non-Residential meters_ize r , �-• /314 inch\ /,,624 W 16,2061 \'600/ $ 7,100 14.4% 1,11 inch 1,1,644 iS 16;36,1' 1�51'0 $ 17,880 9.3% 1�Yz inch \2,854 11$ 28,396 2,660 $ 31,490 10.9% '2=inch' 5`122�1' $-50;963 4,670 $ 55,290 8.5% 3 inch 12,209 $121,484 12,680 $150,130 23.6% 4 inch and above assessed on individual basis Wastewater plant investment fees for a typical single-family residence in 2010 would increase from $3,194 to $3,550, or 11.1%. • STORMWATER PLANT INVESTMENT FEES Plant investment fees for stormwate dre adopted on a citywiZle basis. All new development must // . I. t! 1\ I ki �1 •// provide on-site detention as specified to the master lan. Regional elements are sized to handle existing flows and to work in coordination�with on-site detention(in new developments. Stormwater PIFs pay for a developer's proportionate share of the`system-i' astructure as it exists at the time they develop. The unit of measure used to allocate the value of the existing system between new customers and existing customers is acres of developed land,adjusted with a runoff coefficient(a measure of how water runs off various surfaces). Proposed development fees are calculated by dividing the value of the current system, less outstanding debt, by the total acres of land (existing developed and developable)in the service area. This number is then adjusted by the average runoff for the system. The result is the unit value of the-existing,system per acreof developed land. I.I Y), (Stormwater Plant Investment Fee 2009 �/2' 010 Current—f roposed Change Fees Fees $4 420 $6 313 42.8% The significant increase in fees is due to the large investments in stormwater infrastructure over the last few years. A typical single family residential stormwater PIF would increase from $749 to $1,069, or$320. • ELECTRIC PLANT INVESTMEMv FEES `I 1 l /Electric development charges include the all�cated and actlual costs to the utility for each commercial or residential development. ,The o components of these charges are the Electric Capacity Fee for the off-site electric system, and the Building Site Charge for the on-site electric costs. The electric development charges are typically increased annually to adjust for inflation and October 20, 2009 -5- Item No. 28 A-G cost increases. Increases average from 1% for residential and 1.9% for commercial development in 2010. The following tables compare current fees with proposed fees for residential and commercial development for customer electric loads served by the utility where the Utility owns the transformer: ELECTRIC DEVELOPMENT FEES AND CHARGES-RESIDENTIAL Category Charge 2009 2010 % Inc Per square foot $0.04919 $0.04968 1.0% Per lineal front foot $9.77 $9.90 1.3% t7 n 150 amp Single w Family(Non Elec Heat)_ $1262 $1,278 1.3% Electric 20 amp Single Capacity Family(&Elec Fee* Heat 150 am $2 143 $2 165 1.0% 150 amp Multi- Family(Non Elec Heat) $842 $852 1.2% 200 amp Multi- Family(&Elec Heat 150 am $1 505 $1 520 1.0% Building Site Secondary 1/0 $658 $666 1.2% Charges Service 4/0 $817 $823 0.7% KW In V-110, , ELECTRIC DEVELOPMENT FEES& CHARGES COMMERCIAL 2009 2010 % Category Charge Existing Proposed Change Per square foot $0.04919 $0.04968 1% Per lineal front foot $37.64 $38.20 1% Electric Service 208V I-ph $1,202 $1,238 3% Capacity Fee* Entrance(per o 240V I- h $1,386 $1,429 3/0 ]00 amps) Utility 208V 3-ph $2,081 $2,145 3% Owned 240V 3-ph $2,401 $2,475 3% Transformers 480V 3-ph $4,803 $4,950 3% Building Site Primary Circuit 1 phase $8.90 $8.90 0% Charges Primary Circuit phase $19.12 $19.00 -1% Transformer Install l phase $1257 $1317 5% Transformer Install 3 phase 1 $2 335 1 $2 409 3% *Utility Owned Transformer The impact to a typical single family residence (8,600 sq. ft. lot, 150 amp service)is an increase of $37 from $3,027 to $3,064, or 1%. In addition, when the customer owns the transformer,the proposed WA service charge is reduced by $10.10 per kilovolt-amp (kV)of�sVVic�e'llooa rating for elec`Fric capacity fees for customer electric loads served by the utility. Proposed revssions Acodee language also identify the applicable WA service charge for the utilit}�to recei`veeccustomer generations in excess of the customer's electric service provided by the utility. Since the Utilities do not provide substation capacity for this customer owned generation, the WA service charges are reduced by$11.24 per WA. October 20, 2009 -6- Item No. 28 A-G SUMMARY OF PIF CHANGES AND COMPARISONS The following table shows the overall impact of the proposed Plant Investment Fees and Electric Development Charges on a typical single family residence. Impact on Single Family Residential Current Proposed Change 2009 2010 Water* $ 3,826 $ 3,826 0.0% $ 0 Raw Water** $ 5 03,, $r5,-,2034P 0.0% $ 0 Wastewater ft I$,,3 194 N , - 0), 11.1% $ 356 Stormwater*** U $'g 749 $ 1, 69 43.0% $ 320 Electric* 027 $ 3 O.b'.4 1.0% $ 37 Total $15499V $16,712- 4.6% $ 713 *Typical,based on lot size of 8,600 sq. ft.,70 foot frontage, 150 amp service **No increase for Raw Water ***8,600 sq. ft. lot plus estimated 6, 156 sp.ft common area and right-of-way, light runoff coefficient Comparison to other utilities is difficult due to differences in customer use patterns, the unique capital needs of each utility, and different policy direction from governing bodies. The question of how Fort Collins Utilities compare to other area utilities often arises. The graph below compares water, wastewater, and stormwater-P.1 s an&r w wate req ;cements for a single family residence for some neighboring commur A P Wastewater, Stormwater and Water Plant Investment Fees (Including Cash in Lieu of Raw Water Fees) $30,000 $25,000 $20,000 YL ...., $15,000 3 ' a _ WWI $10,000 y Tcr ' $5,000 x $ Ft Collins Ft Collins Loveland Boulder Longmont Greeley Windsor 2009 Prop 2010 El Raw Water Fees $5,203 $5,203 $5,229 $- $7,530 $5,615 $13,500 ❑Water PIF $3,826 $3,826 $5,470 $11,507 $8,244 $10,100 $6,725 ■Storm Drainage PIF $749 $1,069 $489 $4,025 $709 $227 $632 *Wastewater PIF $3,194 $3,550 $2,420 $2,561 $3,310 1 $4,500 $3,700 0 Wastewater PIF 0 Storm Drainage PIF ®Water PIF 13 Raw Water Fees October 20, 2009 -7- Item No. 28 A-G *Assumptions and data sources: a. Building Type: Single Family Residential b. Building Square Footage: 2,200 sq. ft. c. Dwelling units: 1 d. Lot Size: 8,600 sq.ft, (Stormwater at 14,756 sq. ft. gross) e. Water Tap Size: 1/4"residential f. Does not include the cost of tap and meter fees or development review fees g. Data obtained from city web sites and/or staff of each city. Note: Greeley drainage fees vary by basin. High is$704,Low is$69, Median is$280,Mean is$227. Raw water is dedicated prior to development. MONTHLY RATES The City contracted with Red Oak Con01fingconduct Yervice study for the water and wastewater rates. Cost of service is a process to determine a customer class's proportionate share of a utility system's annual costs. Best practices within the water utility industry recommend performing cost of service analysis on a regular basis to ensure proper cost recovery from the various rate classes. Water Rates Ordinance No. 113,2009,propose-!§�to-iincreaseathe'waterµ,lutil�ty d`'s revenue by 3%.The increase includes a cost of service adjustment an varies by customer class. With the proposed rate,atypical ; single family residential customer's m�onthly bill�will mcreasefrom $60.90 to $63.22 or$2.32 per month in 2010. This is based on a typical single family-residential.summer usage of 21,000 gallons. During lower use in the winter (5,000 gallons per month), the average bill will increase approximately$0.86. The rate increase is needed to generate revenues to fund capital replacement projects. The chart below shows the impact of the cost of service adjustments to the proposed rate increase by customer class: WATER UTILITY Proposed(1) 20101 P' CA0Adjus&ent Rate Increase Customer Proposed Revenue l; st ofiService by Customer Class Adjustmen Class * JL J.�K Residential 3.0% 0.8% 3.8% Duplex/Multi- 3.0% (2.9)% 0.0% family Commercial 3.0% (1.3)% 1.7% (1)Adjustments are cumulative Wastewater Rates Ordinance No. 114,2009,prop oses to increase wh�stewater re enue by 10%. The increase includes ri a cost of service adjustment and var�ies'by customer class. With the proposed rate, a typical single family residential customer's monthly bill will increase from $24.48 to $27.28 or $2.80 per month in 2010. This is based on a system average of 5,200 gallons per month winter quarter average October 20, 2009 -8- Item No. 28 A-G (WQA)water use. 'Council approved monthly wastewater rate increases in 2008 and 2009 at 12% and 11%, respectively, to fund wastewater operations and meet the increase in long-term debt service obligations for a major capital project to replace the trickling filter, make odor control improvements and prepare for future regulation-based improvements at the Mulberry facility. A 9% increase is proposed for 2011 and 8% in 2012 to maintain reserve requirements, meet debt service, and continue operations and maintenance functions. The following table shows the impact of the wastewater cost of service adjustment by customer class: WASTEWATER UTILITY V Proposed(1) 2010 Rate Increase Propped Revue J Cost of Service by Customer Customer.Class Adjustment Adjustment Class Residential 10.0% 1.30% 11.5% Duplex/Multi-family 10.0% (.20)% 9.80% Commercial 10.0% (2.5)% 7.30% (1)Adjustments are cumulative Electric Rates The Utilities are proposing an electric fatencreaspof 5%�00 for all customer classes and 8.6% in 2011. The rate increase is-made upof'the- ollowing-components: Recommended Retail Electric 2010 2011 Rate Increase Purchase Power 4.79% 4.71% Purchase Power—Renewables 0.82% 0.00% Energy Services 1.81% 1.81% Advanced Metering Infrastructure AMI 2.08% 2.08% Total Electric Rate Increase, __9.50% 8.60% 4/( ff Platte River's increases are due t, , o several f\, actors: i IL • Capital investments = $33355 million overten years: transmission approximately $149 million, production approximately$179 million, general at approximately$7 million (cost of materials is increasing, underground transmission). • Craig coal costs have increased. • Reserve requirements increasing. • Xcel Energy is beginning to charge for ancillary services. • Surplus sales are decreasing (the margin from surplus sales subsidizes the rate to the municipalities) as municipal energy consumption increases. • Interest income has decreassed"duei,o 1'o`wNer in rest ates. Platte River's wholesale premi charge for renleiwthaVIe")energy;wtll increase from$0.012 per kWh um to $0.019 per kWh. The increase is due primarily-to increasing the amount of generation plant October 20, 2009 -9- Item No. 28 A-G compared to renewable energy credits as directed by Platte River's Board approved Renewable Policy. This increases Fort Collins annual cost to purchase renewable energy by$708,000 per year. The Energy Services increase will fund additional conservation programs and customer initiatives to support Energy Policy goals. The Advance Metering Infrastructure (AMI) project is estimated to cost $21.5 million, with Light and Power's share at$17.5 million. In order to fund the AMI project and keep reserves at minimum policy levels, a 2.08%rate increase in retail electric rates is required for both 2010 and 2011. Each 2.08%rate increase is projected-to generate pae proximatel7$41 66 million of revenue per year—not the full cost of the project. AMIlwill also`be funded huou�gh�d'epletion of the reserves. While long l I ' F'I— 1 i term savings from the AMI proj c� p\ �.d,thle initial cash flows require a rate increase to maintain reserves at minimal levels-over the-next five years. Federal stimulus funding is also being pursued and, if obtained, the rate impact would be reduced. Electric Rate Options The chart below provides Council with the projected rate increases given the following considerations: Option 1 —9.5%, Recommended-Budget Option 2 —7.42%, Budget without ANII(f�jPV �A ljj I ��I,jj Ele�is ate Options for 2010 Cost for 700 kWh - $ Increase % Increase Residential Rate from 2009 from 2009 2009 Rate $50.66 Option 1 - 9.5% $55.48 $4.82 9.5% Option 2 - 7.42% 11 in $154.�_41 � . � $3.77 7.4% 7J The Electric Rate Ordinance inc'luded�in.tlhe reCOmr erid�tion�sed on Option 1. October 20, 2009 -10- Item No. 28 A-G Monthly Rate Summary The following table summarizes the impact of the proposed rate increases on a typical single family residential customer's monthly utility bill. In total,a"typical"customer's summer bill will increase $9.94 per month. Typical Residential Customer— onthl Utility Bill Current Proposed $ % 2009 2010 Increase Increase Electric 700 kWh per month SQ 66*� 48 $4.82 9.5% Wastewater ( � � 5,200 gallons/month \1�1 J I� winter uarter use Jt $ 27-128- $2.80 11.5% Stormwater 8,600 s .ft. lot light runoff $ 14.26 $ 14.26 $0.00 0% Water January 5,000 gallons $ 22.56 $ 23.43 $0.86 3.8% July 21,000 gallons $ 60.90 $ 63.22 $2.32 3.8% Total January Monthly Utility Bill $111.96 $120.45 $8.49 7.6% Total July Monthly Utility Bill $150.30 $160.24 $9.94 6.6% 1 it 0 October 20, 2009 -11- Item No. 28 A-G The following charts compare water,wastewater,stormwater and electric utility costs for eight Front Range cities. They include the recommended 2010 increases for Fort Collins,Loveland,Longmont and Colorado Springs, and 2009 known rates for Denver, Boulder, Greeley, and Aurora. Residential Utilities2009 Rate Comparison July Water Use 21,000 Gallons $250 $200 $150 $100 $50 Loveland Longmont Ft.Collins Co.Sprs'10 '09 Est U Stonnwater $10.39 $7.13 $6.95 $14.26 $7.40 $5.27 $7.70 $6.00 ❑Wastewater $19.15 $20.20 $20.72 $27.28 $20.28 $20.70 $16.22 $32.59 ■Water $37.54 $60.41 $57.03 $63.22 $63.62 $67.01 $114.80 $123.34 9Electric 1 $52.51 1 $48.83 1 $75.53 1 $55.48 1 $75.53 1 $75.53 $75.53 $66.27 Residential Utilities 2009 Rate Comparison January Water Use-5,000 Gallons $140 $120 $100 $80 $60 $40 $20 $ Longmont Loveland Ft.Collins Co.Sprs'10 10 Est Est Denver'09 Boulder'09 Greeley'09 10 Aurora Est ®Stormwater $7.13 $10.39 $7.40 $6.95 $5.27 $14.26 $7.70 $6.00 ❑Wastewater $20.20 $19.15 $20.28 $20.72 $20.70 $27.28 $16.22 $32.59 0Water $13.85 $12.17 $13.96 $18.85 $21.25 $23.43 $35.72 $25.92 9Electric $48.83 $52.51 $62.35 4)62.35 $62.35 $55.48 $62.35 $66.27 t Note: Boulder, Denver, Greer and ora a ect c providby Xcel 2009 summer and winter rates shown. October 20, 2009 -12- Item No. 28 A-G Customers can reduce their monthly bills through conservation. A 10% reduction in usages for a typical residential customer would impact their monthly utility bill as follows: Typical Residential Customer-Monthly Utility Bill (With and Without 10% Reduction in Use) Current Proposed $ % Proposed $Increase % 2009 2010 Increase Increase 2010 (Decrease) Increase from from from 2009 (Decrease) 2009 2009 from 2009 No change in use 10% reduction in use* Electric 700 kWh per month $50.66 1 $55.48 $4.82 9.5% $50.36 $0.30 -0.6% Wastewater 5,200 gallons/month winter quarter use W A $24.48 $27.28 $2.80 11.5% $25.91 $1.43 5.9% $tormwater 8,600 sq.11. lot, -light runoff $14.26 $14.26 $0.00 0.0% $14.26 $0.00 0.0% Water January-5,000 -gallons $22.56 $23.43 $0.86 3.8% $22.40 $0.16 -0.7% July-21,000 -gallons $60.90 $63.22 $2.32 3.8% $57.55 $3.36 -5.8% Total January Mo. -Utility Bill $111.96 $120.45 $8.49 7.6% $112.94 $0.98 0.9% Total July Monthly Utility Bill $150.30 $160.24 $9.95 6.6% $148.08 $2.22 -1.5% * 10% reduction in use: Electric 630 kWh per month Wastewater 4,680 Winter Quarter' Gal/Mo " PV Water: January 4,500 gallons,4_1-.8;900 ngallons) IL No change to Stormwater ATTACHMENTS 1. Water Board Minutes excerpt from August 27, 2009 meeting relating to budget, rates and PIFs. /rc2N 11 j 7 7 2. Electric Board Minutescexcer�p fro��/ emberl4, 2�meeting relating to budget, rates, , and electric fees. �`A�.. II I 3. PowerPoint presentation ATTACHMENT Utilities City - ty of electric .stormwater wastewater-water is 3/ 700 Wood Street c F (CI1! PO Boxb80 fy1 kit! Fort.Collins,CO 80522, 970.221.6700 9Z0:221.6619-fax 970.224.6003—'TDD utilities®fcgov.com fcgov.corr utilities MEMORANDUM DATE: October 22, 2009 TO: Mayor Hutchinson and City Council members THRU: Darin Atteberry, City Manager Brian Janonis, Utilities Executive Directorj( FROM: Terri Bryant, Utilities Finance and Budget Manager Ila CC: Ellen Switzer, Utilities Financial Operations Manager Bill Switzer, Utilities Rate Analyst Joanne Agens, Utility Billing RE: Wastewater Flat and Multi-Family Rates Council Member Ben Manvel'asked staff about the wastewater flat rate and whether or not it was relevant to the code at Tuesday's Council meeting. Mr..Manvel also asked about the multi- family wastewater rate and its variance to the duplex rate. I was unable to completely respond to the question at the.meeting, and this memo is being sent to clarify my responses. In regard to the wastewater flat rate, we do still have approximately40 flat rate wastewater customers; who have cisterns or well water. We will need to leave the language related`to flat rate'wastewater customers in the code. I misspoke when I relayed the information on the multi-family customers' fixed rate. The rate difference is,not due to the cost of service study impact, but is a rate design resulting from the constraints of our utility billing system. The $1.95 per month base charge is the average cost to serve each unit for this class. Some multi-family customers in this class'have as little as three units while others are in the hundreds of units. Prior to 6 or 7 years ago,there was a higher cost for the first unit just like with water rates. However, for reasons involving the winter quarter average(WQA) calculation, our utility billing system was not able to bill the wastewater fixed rate with a•different cost per first unit. Consequently, to avoid 'costly modifications to the billing system',the rate was changed to a flat"per unit" cost for all units. Earlier this year, we upgraded to a newer version of the billing system, and we intend to do some testing to see if the new system will enable us to bill a higher fixed cost for the first unit of a multi-family residence. ORDINANCE NO. 113, 2009 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 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 water utility, as set forth therein; and WHEREAS, Section 26-1 18 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 and City staff have recommended to the City Council that the following water use rates be imposed for the billing year beginning January 1, 2010; and NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows: Section 1. That Section 26-127 of the Code of the City of Fort Collins is hereby amended to read as follows: Sec. 26-127. 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 and forty-six cents ($12.46). 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 ninety-two and eight-tenths cents ($1.928) per one thousand (1,000) gallons. For the next six thousand (6,000) gallons used per month, a charge of two dollars and twenty-one and six-tenths cents ($2.216) per one thousand (1,000) gallons. For all additional gallons used per month, a charge of two dollars and fifty-four and nine-tenths cents($2.549) 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 eighty-five and seven-tenths cents ($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 thirteen and five-tenths cents ($2.135) per one thousand (1,000) gallons. For all additional gallons used per month, a charge of two dollars and forty-five and six-tenths cents ($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-nine and four-tenths cents ($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 twenty-four and three- tenths cents ($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. -2- (b) Nonresidential Rates. (1) Base charge. Nonresidential customers shall pay a base monthly charge based on meter size as follows: Meter Size Monthly Base (inches) Charge '/4 $11.15 l 31.10 1'/z 84.56 2 127.44 3 194.38 4 305.15 6 591.96 8 1,045.75 (2) Quantity charges. Nonresidential customers shall pay a monthly quantity charge of one dollar and fifty-five cents ($1.55) 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-three and eight- tenths cents ($1.938) 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. (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 twenty-two and eight-tenth cents ($2.228) 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 seventy-eight and six-tenths cents($2.786)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 Specified Amount (inches) (gallons per month) 3/4 100,000 1 300,000 1'/z 625,000 2 1,200,000 3 1,400,000 4 2,500,000 (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 2. That the amendments to the Chapter 26 of the City Code contained herein shall go into effect in January 1, 2010. Introduced, considered favorably on first reading, and ord d published this 20th day of October, A.D. 2009,and to be presented for final passage on t 31 day of November, A.D. 2 09. Mayor ATTEST: City Clerk Passed and adopted on final reading on the 3rd day of November, A.D. 2009. Mayor ATTEST: City Clerk -4- ORDINANCE NO. 114, 2009 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 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, 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 third year in the five year period; and WHEREAS, the City Manager and City staff have recommended to the City Council that the following wastewater rates be imposed for the billing year beginning January 1, 2010. 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 residential $28.66 per month user(flat rate) Single-family residential $12.80 per month plus $2.488 per 1,000 gallons of user(metered water use) either winter quarter water use or 3,000 gallons, whichever is greater B Duplex (two-family) $44.75 per month residential users (flat rate) Duplex (two-family) $16.58 per month plus $2.488 per 1,000 gallons of residential u s e r s either winter quarter water use or 4,000 gallons, (metered water use) whichever is greater C Multi-family residential $2.488 per 1,000 gallons of winter quarter water user (more than two use, plus a base charge of $1.95 per month per dwelling units including dwelling unit served mobile home parks) and winter quarter based nonresidential user D Minor nonresidential $2.488 per 1,000 gallons of water use, measured user sewage flow or winter quarter water use, whichever is applicable, plus the following applicable base charge: Size of water meter Basecharge (inches) '/< or smaller $7.18 1 16.58 1'/z 33.37 2 57.09 3 91.22 4 144.06 6 631.51 8 729.17 E and F I n t e r m e d i a t e $2.488 per 1,000, gallons of water use, measured nonresidential user and wastewater flow or winter quarter water use, Significant industrial whichever is applicable; plus a surcharge of$2.574 user per million gallons for each milligram per liter of suspended solids in excess of 235 milligrams per -2- liter; plus a surcharge of$2.143 per million gallons for each milligram per liter of BOD in excess of 265 milligrams per liter or a surcharge of $1.353 per million gallons for each milligram per liter of COD in excess of 400 milligrams per liter, or a surcharge of$4.007 per million gallons for each milligram per liter of TOC in excess of 130 milligrams per liter, whichever is applicable. The user shall pay this calculated amount plus the applicable base charge set forth below: Size of water meter Base (inches) charge 3/4 or smaller $7.18 1 16.58 1% 33.37 2 57.09 3 91.22 4 144.06 6 631.51 8 729.17 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: 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: -3- Parameter Excess over (mg/1) Rate per !,000 gallons BOD 265 $0.002143 COD 400 0.001353 TOC 130 0.004007 TSS 235 0.002574 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 Fees shall be set forth as in § charges 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) Determined on a case-by-case Cost plus 15% 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 $0.061 per gallon County Generated outside Larimer $0.092 per gallon County b. Recreational vehicle sanitary waste holding tanks: Residential customers of the No charge for single disposal City of Fort Collins Wastewater Utility -4- Others $2.00 base fee plus $0.061 per gallon (6) Miscellaneous fees Determined on a case-by- case basis based on direct costs plus 15% indirect costs Section 3. That the amendments to the Chapter 26 of the City Code contained herein shall go into effect in January 1, 2010. Introduced, considered favorably on first reading, and ordered published this 20th day of October, A.D. 2009, and to be presented for final passage on 3rd day of November, A.D. 2009. Mayo ATTEST: City Clerk Passed and adopted on final reading on the 3rd day of November, A.D. 2009. Mayor ATTEST: City Clerk -5- ORDINANCE NO. 116, 2009 OF THE COUNCIL OF THE CITY OF FORT COLLINS AMENDING CHAPTER 26 OF THE CODE OF THE CITY OF FORT COLLINS TO REVISE WATER PLANT INVESTMENT FEES WHEREAS, the City Council is empowered and directed by Article XII, Section 6, of the 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 water utility, as set forth therein; and WHEREAS, Section 26-120 of the City Code provides that the rates and parameters of the Water Plant Investment Fees be reviewed annually by the City Manager and presented to City Council for approval no less frequently than biennially; and WHEREAS, on November 20, 2007, the City Council adopted Ordinance No. 119, 2007, which established the plant investment fees that are now in effect; 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, City staff recommends that existing water plant investment fees be adjusted based on the current replacement cost of the capital facilities that will be needed to serve new development and by existing system capacity; and WHEREAS, the City Manager and City staff have recommended to the City Council that the following Water Plant Investment Fees to be effective January 1, 2010; and WHEREAS, based on the foregoing, it is the desire of the City Council to amend Chapter 26 of the City Code to revise water plant investment fees. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows: Section 1. That Section 26-128 of the Code of the City of Fort Collins is hereby amended to read as follows: Sec. 26-128. Schedule C,water plant investment fees. The water plant investment fee prescribed in § 26-120 shall be payable by users both inside and outside of the city, as follows: (1) Single-family residential buildings: For the first three-fourths(1/4)inch water tap or meter, a fee of seven hundred thirty dollars($730.) for a single-family residence, plus thirty-six cents ($0.36) for each square foot of lot area. For lots greater than one-half acre, the lot size shall be deemed to be one-half acre for the purpose of this calculation. For each additional tap or meters larger than three-fourths (1/4) inch, the nonresidential rate shall apply. (2) Residential buildings of two (2) or more dwelling units: For each residential building unit a fee of four hundred ninety dollars ($490.), plus twenty-seven cents($0.27) for each square foot of lot area.The fee will provide for one(1) tap per residential building and an adequate number of additional taps to serve common irrigable areas, if any. The number and size of taps shall be determined by the General Manager based upon the criteria established in the Uniform Plumbing Code as amended pursuant to Chapter 5 of the Code. (3) Mobile home parks: For each mobile home park,a fee of four hundred ninety dollars ($490.) for each mobile home space in the park, plus twenty-seven cents($027)for each square foot of lot area. The fee will provide for one(1) tap per mobile home park. The size of the tap shall be determined by the General Manager based upon the criteria established in the Uniform Plumbing Code as amended pursuant to Chapter 5 of the Code. (4) Hotels, rooming houses, sororities, fraternities and similar uses: The nonresidential rate shall apply. (5) Nonresidential service: a. Service to all nonresidential taps,including but not limited to taps for commercial and industrial service, shall be charged according to the size of the meter pursuant to the following schedule: Meter Size Nonresidential Plant (inches) Investment Fee 3/4 $7,530. 1 21,730. 1%2 45,300. 2 69,070. 3 157,920. b. The fee for all meters larger than three (3) inches shall be negotiated with the General Manager and shall be based on estimated peak day demand but shall not be less than the charge for a 3" meter. Section 2. That the amendments to Chapter 26 of the City Code contained herein shall go into effect on January 1, 2010. -2- Introduced, considered favorably on first reading, and or d published this 20th day of October,A.D. 2009, and to be presented for.final passage on t 3r44, ay of November, A. . 2009. May ' ATTEST: City Clerk Passed and adopted on final reading on the 3rd day of November, A.D. 2009. Mayor ATTEST: City Clerk -3- ORDINANCE NO. 117, 2009 OF THE COUNCIL OF THE CITY OF FORT COLLINS AMENDING CHAPTER 26 OF THE CODE OF THE CITY OF FORT COLLINS TO REVISE SEWER PLANT INVESTMENT FEES WHEREAS, the City Council is empowered and directed by Article XII, Section 6, of the 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, Section 26-277.of the City Code 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 26-283 of the City Code provides that the City Manager review the rates and parameters of the Sewer Plant Investment Fees annually and present them to City Council for approval no less frequently than biennially; and WHEREAS, on October 21, 2008, the City Council adopted Ordinance No. 111, 2008, which established the sewer plant investment fees now in effect; and WHEREAS, the City Manager and City staff have recommended to the City Council the following adjustments to the Sewer Plant Investment Fees to be effective January 1, 2010; and WHEREAS, based on the foregoing, it is the desire of the City Council to amend Chapter 26 of the City Code to revise Sewer Plant Investment Fees. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows: Section 1. That Sections 26-283 (b) and;(c) of the Code of the City of Fort Collins are hereby amended to read as follows: Sec. 26-283. Sewer plant investment fees (SPIF); basis. (b) The SPIF shall be based on and used for growth-related capital expansion costs of wastewater collection, transmission and treatment facilities. The fee shall vary with the number of dwelling units for residential users. For nonresidential users, the fee shall be based on (1) quantity of discharge that may be determined by size of water meter or other means of accurately measuring or calculating flow quantity as approved by the General Manager and (2) the level of wastewater concentration of organic and solid materials. The parameters and rates shall be reviewed by the City Manager annually and fees shall be presented to the City Council for approval no less frequently than biennially. (c) No wastewater utility user shall make any changes or additions to the property served or operations at the property that would significantly affect the nature or quantity of the wastewater discharged and/or cause a change in the category of use without first obtaining the approval of the General Manager and paying a SPIF based on the altered service. Such changes include without limitation the replacement of an abandoned service line, an increase in the water or sewer tap size, an increase in the number of dwelling units, a change from residential use to nonresidential use or a modification of production by a nonresidential user. Section 2. That Sections 26-284 (a), (d), and (f) of the Code of the City of Fort Collins are 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: Category SPIF A $3,550. B and C $2,490. for each dwelling unit or mobile home space Water meter Category size (inches) Fee D, E, F ;/4 $7,100. 1 17,880. 1'/2 31,490. 2 55,290. 3 150,130. 4 and above Calculated on an individual basis based on peak wastewater flow (determined in the manner set forth hereinafter) but not less than the charge for a three-inch meter. G Same as equivalent category, plus any special sanitation district fees. H Determined pursuant to paragraph (d) of this Section. (d) The amount of the plant investment fee and surcharge for each nonresidential surcharged user, users in Category H and any user that is expected to generate greater than its proportionate share of peak day flow at the treatment plant for the applicable category (including both contributed wastewater volume -2- and volume related to infiltration and inflow), shall be calculated utilizing the following formula: SPIF = Site Flow x [Flows + (BOD x BOD$) + (TSS x TSS,)] + I&I Flow x [Flow$ + (200 mg/1 x BOD$) + (250 mg/l x TSS,)] Where: SPIF =Plant investment fee for Category H users and users discharging wastewater with average concentrations of BOD and/or TSS which exceed those average concentrations which are set forth in § 26-282(b) under Category E-34 Site Flow= The user's proportionate share of peak day flow at the treatment plant based on site flow discharge from user's site I&I Flow= That proportionate share of peak day flow due to infiltration and inflow as allocated to user's site flow discharge. Flow$ _ $6.34 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/I BODE= $0.0138 per mg/l (unit cost of facilities attributable to treating BOD) TSS = Average TSS concentration for user category or measured TSS concentration for the user as determined in accordance with Subsection (c) of this Section, but not less than 250 mg/I TSS$ =$0.0110 per mg/l (unit cost of facilities attributable to treating TSS) (fJ 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 (inches) Peakflow (gallons per day) 3/4 600 1 1,510 1'/z 2,660 2• L 4,670 3 12,680 4 and greater Calculated on an individual basis based on user's proportionate share of peak -3- 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 Section 3. That the amendments to Chapter 26 of the City Code contained herein shall go into effect on January 1, 2010. Introduced, considered favorably on first reading, and ordered published this 20th day of October, A.D. 2009, and to be presented for final passage on the 3rd day of November, A.D. 2009. Mayo J ATTEST: City Clerk Passed and adopted on final reading on the 3rd day of November, A.D. 2009. Mayor ATTEST: City Clerk -4- ORDINANCE NO. 118, 2009 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 City Manager annually review electric development fees and that the fees be presented to the City Council for approval no less than annually; and WHEREAS, on October 21, 2008, the City Council adopted Ordinance No. 113, 2008, which established the electric development fees now in effect; and WHEREAS, the City Manager and City 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, 2010; 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 Section 26-472 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. (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 there is an increase in the ECF between the time of application for electric service and the actual payment of the ECF, the rates in effect at the time of payment shall apply. 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. (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 sixty-eight thousandths cents ($0.04968) 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 ninety cents ($9.90) per lineal foot of the developed site abutting a dedicated street or roadway. (2) The dwelling unit charge shall be as follows: a. For a single-family panel size with one-hundred-fifty-amp service .(nonelectric heat), one thousand two hundred seventy-eight dollars ($1,278.) per dwelling unit; b. For a single-family panel size with two-hundred-amp service or with one-hundred-fifty-amp service (electric heat), two thousand one hundred sixty-five dollars ($2,165) per dwelling unit; C. For a multi-family panel size with one-hundred-fifty-amp service (nonelectric heat), eight hundred fifty-two dollars ($852.) per dwelling unit; d. For a multi-family panel size with two-hundred-amp service or with one-hundred-fifty-amp service (electric heat), one thousand five hundred twenty dollars ($1,520.) 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: .2- (1) The secondary service charge shall be as follows: Secondary Charge (up to 65 Plus Per Foot Charge For Each Service Size feet) Foot Over 65 1/0 service $666.00 $4.84/Foot 4/0 service $823.00 $5.80/Foot 350 kCM $910.00 $7.30/Foot Service 1/0 Mobile $520.00 N/A Home Service 4/0 Mobile $649.00 N/A Home Service (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 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. (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 there is an increase in the ECF between the time of application for electric service and the actual payment of the ECF, the rates in effect at the time, of payment shall apply. 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 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 written commitment and shall be paid prior to the provision of any electric service. -3- (b) The ECF shall be the total of the site footage charge, kVA service 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 sixty-eight thousandths cents ($0.04968) 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-eight dollars and twenty cents ($38.20) per lineal foot of the developed site abutting a dedicated street or roadway. (2) The kVA service charge shall be determined as follows. a. For customer electric loads served by the utility the kVA service charge shall be: i. Utility owned transformers: The kVA service charge shall be fifty-nine dollars and fifty-four cents ($59.54) per kilovolt-amp (kVA) of service load rating. ii. Customer owned transformers: The kVA service charge shall be forty-nine dollars and forty-four cents ($49.44) per kilovolt-amp (kVA) of service load rating. b. For the utility to receive customer generation in excess of the customer's electric service provided by the utility, the following KVA service charge will also apply: i. Utility owned transformers: The kVA service charge shall be forty-eight dollars and thirty cents ($48.30) per kilovolt-amp (kVA) of generation l service rating in excess of the service load rating as paid per subparagraph (2)a.i. above. Such ratings shall be determined by the General Manager. ii. Customer owned transformers: The kVA service charge shall be thirty-eight dollars and twenty cents ($38.20) per kilovolt-amp (kVA) of generation service rating in excess of the service load rating paid per subparagraph (2)a.ii.above. Such ratings shall be determined by the General Manager. -4- (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; b. For three-phase service, a charge of nineteen dollars ($19.00) per foot of primary circuit. (2) The transformer installation charge shall be as follows: a. For single-phase service, a charge of one thousand three hundred seventeen dollars ($1,317.) per transformer; b. For three-phase service, a charge of two thousand four hundred nine dollars ($2,409.) 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 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 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, 2010. -5- Introduced, considered favorably on first reading, and ordered published this 20th day of October, A.D. 2009, and to be presented for final passage on the rd day of November, A.D. 2009. Mayor ATTEST: City Clerk Passed and adopted on final reading on the 3rd day of November, A.D. 2009. Mayor ATTEST: City Clerk -6- ORDINANCE NO. 119, 2009 OF THE COUNCIL OF THE CITY OF FORT COLLINS AMENDING CHAPTER 26 OF THE CODE OF THE CITY OF FORT COLLINS TO REVISE STORMWATER PLANT INVESTMENT FEES WHEREAS, Article XII Municipal Public Utilities, Section 6 Municipal Utility Rates and Finances, requires all net operating revenues of the City's utilities to be held within the respective utility's fund; and 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 storm water utility, as set forth therein; and WHEREAS, Section 26-511(a) of the City Code requires that the City Manager review the rates and parameters of the Stormwater Plant Investment Fees annually and present them to City Council for approval no less frequently than biennially; and WHEREAS, on November 20, 2007, the City Council adopted Ordinance No. 124, 2007, which established the stormwater plant investment fees now in effect; and WHEREAS, the City Council has adopted stormwater basin master plans recommending stormwater facilities that are necessary to provide for the proper drainage and control of flood and surface waters within the City; and WHEREAS, the. City Council adopted Ordinance No. 168, 1998 determining that all developed lands within the City benefit by the installation of such stormwater facilities; and WHEREAS, existing stormwater rate payers have paid for the design, right-of-way and construction of stormwater facilities identified in the drainage basin master plans that will benefit and be utilized by new development; and WHEREAS, the City Council has determined that new development should pay its proportionate'share of the costs of the stormwater infrastructure as it exists at the time of development; and WHEREAS, the City Manager and City staff have recommended to the City Council the following adjustments to the Stormwater Plant Investment Fees to be effective January 1,2010;and WHEREAS, based on the foregoing, it is the desire of the City Council to amend Chapter 26 of the City Code to revise stormwater plant investment fees. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows: Section 1. That Section 26-512(2) of the Code of the City of Fort Collins is hereby amended to read as follows: Sec. 26-512. Stormwater plant investment fees established. (2) Plant investment fee base rate.The stormwater plant investment fee base rate is six thousand three hundred thirteen dollars($6,313)per gross acre of area. Section 2. That the amendments to Chapter 26 of the City Code contained herein shall go into effect January 1, 2010. Introduced, considered favorably on first reading, and ordered published this 20th day of October,A.D. 2009, and to be presented for final passage on gtlheay of November, A.D. 2009. May ATTEST: City Clerk Passed and adopted on final reading on the 3rd day of November, A.D. 2009. Mayor ATTEST: City Clerk