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Home My WebLink AboutCOUNCIL - AGENDA ITEM - 10/20/2009 - ITEMS RELATING TO UTILITY RATES AND CHARGES FOR 20 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 Charges for 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 2009-2010 Light and Power budget and the proposed increases to the electric rates and development fees and charges at its meeting on September 14, 2009. The Board voted 5-1 to support the proposed budget and voted 4-2 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 $9.95 per month. Proposed water, wastewater and stormwater plant investment 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 effective January 1, 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 Ordinance No. 115,2009 Amending Chapter 26 of the City Code to Revise Electric Rates, Fees and Charges. D. First Reading of Ordinance No. 116,2009,Amending 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. 119,2009,Amending Chapter 26 of the City Code to Revise Stormwater Plant Investment Fees. 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. BACKGROUND 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: 1. The water system assets are valued at replacement 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 PIFs for the various customer classes. 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 Inside Use 133 $ 490 133 $ 490 0% Outside Use-$/S . Ft. 263 $ 0.27 263 $ 0.27 0% Non-Residential meter size '/4 inch 1,730 $ 6,970 1,850 1 $ 7,530 8.0% 1 inch 5,110 $ 20,590 5,340 $ 21,730 5.5% 1 '/2 inch 10,300 1 41,510 11,130 $ 45,300 9.1% 2 inch 16,210 $ 65,330 16,970 $ 69,070 5.7% 3 inch 35,370 $142,540 38,800 $157,920 10.80/( >than 3 inches Based on specific customer requirements *differences due to rdunding The impact to a typical single family residence remains at the 2009 rate of$3,826(8,600 sq. ft. lot). • WASTEWATER PLANT INVESTMENT 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. 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 meter size '/4 inch 624 $ 6,206 1 600 $ 7,100 14.4% 1 inch 1,644 $ 16,361 1,510 $ 17,880 9.3% 1 %2 inch 2,854 $ 28,396 2 660 $ 31,490 10.9% 2 inch 5,122 $ 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 stormwater are adopted on a citywide basis. All new development must provide on-site detention as specified in the master plan. Regional elements are sized to handle existing flows and to work incoordination with on-site detention in new developments. Stormwater PIFs pay for a developer's proportionate share of the system infrastructure 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 acre of developed land. Stormwater Plant Investment Fee 2009 2010 - % Current Proposed 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 INVESTMENT 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 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% C7 n 150 amp Single w Family(Non Elec ago Heat) $1 262 $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 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% 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 ]-ph $1 202 $I 238 3% Capacity Fee* Entrance(per o 240V I-ph $1,386 $1,429 3/0 100 amps) 208V 3-ph $2,081 $2,145 3% Utility 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 3 phase $19.12 $19.00 -1% Transformer Install 1 phase $1 257 $1 317 5% Transformer Install 3 phase $2 335 $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 kVA service charge is reduced by $10.10 per kilovolt-amp (WA) of service load rating for electric capacity fees for customer electric loads served by the utility. Proposed revisions to code language also identify the applicable WA service charge for the utility to receive customer generation 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** $ 5203 $ 5,203 0.0% $ 0 Wastewater $ 3,194 $ 3,550 11.1% $ 356 Stotmwater*** $ 749 $ 1069 43.0% $ 320 Electric* $ 3,027 $ 3,064 1.0% $ 37 Total $15 999 $ 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 PIFs and raw water requirements for a single family residence for some neighboring communities. Wastewater, Stormwater and Water Plant Investment Fees (Including Cash in Lieu of Raw Water Fees) $30,000 - - $25,000 $20,000 77 $15,000 $10,000 $5,000 - -f I'm i $ Ft Collins Ft Collins Loveland Boulder Longmont Greeley Windsor 2009 Prop 2010 Cl Raw Water Fees $5,203 $5,203 $5,229 $- $7,530 $5,615 $13,500 *Water PlF $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 PlF $3.194 $3,550 $2,420 $2.561 $3,310 $4,500 $3,700 ®Wastewater PIF ■Storm Drainage PIF 13 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: '/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 Consulting to conduct a cost of service 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,proposes to increase the water utility fund's revenue by 3%.The increase includes a cost of service adjustment and varies by customer class. With the proposed rate,a typical single family residential customer's monthly bill will increase from $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) 2010 Rate Increase Customer Proposed Revenue Cost of Service by Customer Class Adjustment Adjustment Class 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,proposes to increase wastewater revenue by 10%. The increase includes a cost of service adjustment and varies 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 Proposed(1) 2010 Rate Increase Proposed Revenue 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 rate increase of 9.5% in 2010 for all customer classes and 8.6% in 2011. The rate increase is made up of the following 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% Platte River's increases are due to several factors: • Capital investments = $335 million over ten 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 decreased due to lower interest rates. Platte River's wholesale premium charge for renewable energy will increase from$0.012 per kWh 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 approximately$1.66 million of revenue per year—not the full cost of the project. AMI will also be funded through depletion of the reserves. While long term savings from the AMI project are projected, the 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 AMI Electric Rate 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% $54.43 1 $3.77 1 7.4% The Electric Rate Ordinance included in the recommendation is based on Option 1. I October 20, 2009 -10- 1 Item No. 28 A-G Monthly Rate Summary P 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 $ 50.66 $ 55.48 $4.82 9.5% Wastewater 5,200 gallons/month winter quarter use $ 24..48 $ 27.28 $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 1 $120.45 $8.49 7.6% Total July Monthly Utility Bill $150.30 $160.24 $9.94 6.6% 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 Utilities 2009 Rate Comparison July Water Use 21,000 Gallons $250 $200 $150 $100 $50 Loveland Longmont Ft.Collins Co.Sprs'10 '10 Est '10 Esl Boulder'09 ,10 Denver'09 Greeley'09 Aurora'09 Est ®Stonnwater $1.0.39 $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 $1.23.34 *ElecUic $52.51 $48.83 $75.53 $55.48 $75.53 $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 '10 Est Denver'09 Boulder'09 Greeley'09 '10 Aurora'09 Est ®Stormwater $7.13 $10.39 $7.40 $6.95 $5.27 $14.26 $7.70 $6.00 O Wastewater $20.20 $19.15 $20.28 $20.72 $20.70 $27.28 $16.22 $32.59 ■Water $13.85 $12.17 $13.96 $18.85 $21.25 $23.43 $35.72 $25.92 *Electric $48.83 $52.51 $62.35 $62.35 $62.35 $55.48 $62.35 $66.27 Nate: Boulder, Denver, Greeley and Aurora electric provided by 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% Stormwater 8,600 sq.ft. lot, -light runoff $14.26 1 $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 Water:January 4,500 gallons, July 18,900 gallons No change to Stormwater ATTACHMENTS 1. Water Board Minutes excerpt from August 27, 2009 meeting relating to budget, rates and PIFs. 2. Electric Board Minutes excerpt from September 14,2009 meeting relating to budget,rates, and electric fees. 3. PowerPoint presentation ATTACHMENT Excerpt from Approved Water Board August 27, 2009, Minutes Recorded by Meagan Peil, Customer Service Representative, Utilities 2010-2011 Budget Presentation Utilities Finance Manager Terri Bryant presented the water, wastewater, stormwater, and customer service and administration budgets for 2010-2011. The budget assumptions are based on three percent inflation, no salary increases in 2010 with a two percent increase in 2011, and conservative growth projections. Water: The proposed budget for water is $34.8 million in 2010 and $34.6 million in 2011. The largest dip from 2009 to 2010/2011 is the Halligan Project. The rate increase proposed would cover capital projects. Wastewater: The proposed budget for wastewater is $23.3 million in 2010 and $22.5 million in 2011. Under capital projects, the dip is from the Mulberry Water Reclamation Facility. Stormwater.- The proposed budget for stormwater is $15.5 million in 2010 and $14.6 million in 2011. There are no rate increases proposed for stormwater. Revenues have been stable, and there is a decrease in capital projects. There has been no monthly rate increase for stormwater since 2004. The Stormwater Master Plan was initially a 25-year plan, but is now a 35-year plan. The level of protection changed after the 1997 flood at Council's direction. Cost of service: Cost of service is a process to determine a proportionate share of a utility system's annual cost by customer class. A cost of service study was completed, resulting in a proposed 2010 water and wastewater rate increase based on customer class and plant investment fees. The adjustments are the amount of additional revenue needed to meet financial obligations which means, "How much the utility needs", and the change in cost to provide service to a customer class which means, "Who pays". Plant investment fees are revised based on Council's direction. In this budget, water plant investment fees do not increase for single families but increase for commercial customers by eight to 11 percent. Wastewater plant investment fees increase 11 percent for single family and 20 percent for commercial customers. Stormwater investment fees increase 42.8 percent due to significant capital projects in 2008. The residential customer impact will be an increase of approximately ten dollars on their bill. Customer Service and Administration: The proposed customer service and administration budget for 2010-2011 is $16 million per year and includes Light and Power and water utilities. This fund area covers customer services, meter reading, locates, education and safety. The $2.1 million increase goes to fund critical new positions, payments for MIS services, space planning and relocating the customer service division in March 2010. Also, code language is being changed to address billing errors (under and over billing). In summary, at the time this proposed budget goes forward to Council for consideration: • Reserve policies are met; • Debt coverage for all funds is met; and Water Board Approved Minutes 1 August 27, 2009 • Water and wastewater proposed rate increases include cost of service adjustments, and plant investment fees have been revised and updated per Council direction. The challenges going forward for Utilities will be in the areas of asset management, succession planning, rate stability and the 2 1" Century Sustainability Initiative. Questions from the presentation: How often are the costs of service studies done? Todd Cristiano from Red Oak Consulting stated most utilities have a five year financial plan because they are not very accurate if done further out. The last study was completed in 1999 due to changes in administration. Advanced Metering Infrastructure (AMI) was discussed. The meters can communicate with our customers with daily meter reads to manage use. The meters can be used for conservation and in order to accomplish this, the infrastructure and meters need to be replaced. Implementation will occur in 2011 with the installation of the meters in 2010. Can you explain why we are raising water rates? New strategies are being developed regarding replacing parts of the distribution system. One distribution project is planned for the Old Town area due to aging. Funds to build reserves for these types of projects are needed to avoid a large rate increase. Also, with less water usage, revenues decrease, and rates would have to be raised again to put money in the reserves. A three percent increase keeps revenues stable. Why weren't these being replaced before? We were in a growth mode and were not replacing and repairing the system. Motion: Recommendation to Council to approve the Water, Wastewater, and Stormwater and Customer Service and Administration Utilities' 2010-2011 Proposed Budgets and rate and fee increases. Board Member Pillard moved to approve the motion, and it was seconded by Board Member Phelan. Discussion on the motion: Are there increases or decreases in full time employees in water, wastewater and stormwater? Full time employee cost was reduced by eliminating vacancies such as the water plant supervisor position. Also, AMI will reduce the workforce in meter reading and customer service, which will be reflected in the 2012 budget. Staff noted the increase in full time employees in the customer service area are for the security coordinator and one full time employee for the water conservation program. The asset management position was funded through the 2008-2009 budgets. Chairperson Janett will be supporting the motion because of the conservative growth projections, more fairness embedded in cost of service changes and the asset management direction is entirely appropriate. The planning for outdated, outmoded infrastructure is Water Board Approved Minutes 2 August 27, 2009 critically important, as well as transition from a growth economy to a maintenance economy. Why are the plant investment fees going up? Revenue is needed to replace the pipes. Vote on the motion: Yeas - 7,Nays—2 (reasons noted below) Board Member Wockner stated three reasons for voting against the budget. First, Fort Collins has the highest stormwater rates in America, and the stormwater program has exorbitant rates. Also, money for the Halligan expansion project is still in this budget, and it has not been proven the project is necessary. Last, growth is not paying its own way, and the rate will be subsidizing growth. Board Member Connor stated three reasons for voting against the budget. First, there is not enough being done to aggressively reduce debt, primarily stormwater. Also, the budget calls for increasing the number of full time employees during a time of economic stress. Finally, his nay vote is a criticism of Council's philosophy toward fiscal irresponsibility, and he made it clear it is not intended as a criticism of the job being done by the Utilities Finance Manager or Utilities staff. He understands staff is directed by Council. Motion passed. Motion: Recommendation to Council to approve codification language of existing policy related to billing errors. Board Member Waskom moved to approve the motion, and Board Member Brown seconded the motion. Discussion on the motion: Why don't we see the final language? The language will be written at a later time; we are looking for a motion on the concept of the language. A friendly amendment was proposed to remove the word "language" from the original motion. Board Member Waskom accepted the friendly amendment, and it was seconded by Board Member Brown. The amended motion reads: Recommendation to Council to approve codification of existing policy related to billing errors. Vote on the motion was unanimous. Motion passed. Water Board Approved Minutes 3 August 27, 2009 ATTACHMENT Excerpt from Approved Electric Board September 14, 2009, Minutes Recorded by Meagan Peil, Customer Service Representative, Utilities 2010-2011 Budget Presentation (Presentation available upon request) Utilities Finance and Budget Manager Terri Bryant introduced Utilities Financial Operations Manager Ellen Switzer to present the proposed 2010-2011 Light and Power Budget. Summary In summary, the 2010 budget is $115, 985, 597, and the 2011 budget is $115,343, 797. There is a proposed monthly rate increase of 9.5 percent in 2010 and 8.6 percent in 2011 which can be offset by conservation. The electric development fees will increase 1.2 percent for residential and 1.8 percent for commercial. Also, staff are exploring codification for the billing error policy. Motion: Board Member Barnish moved that the Board recommend that City Council approve the codification of the billing error policy. Board Member Harris seconded the motion. The vote on the motion was unanimous. Motion passed. Electric Board Approved Minutes—Excerpt 1 September 14, 2009 UTILITY RATES DEVELOPMENT FEES Fort Collins City Council Meeting October 20 , 2009 F�tf l 2010 Utility Proposed Monthly Rate Increases • Electric rates are proposed to increase 9 . 5 % • Water & Wastewater — 2010 proposed monthly rate increases include a revenue adjustment and cost of service adjustments (COS ) , therefore rate increases will vary by customer ATTACHMENT 3 class • Water is proposing a 3% revenue adjustment — Single Family Residential increase with COS = 3 . 8% • Wastewater is proposing a 10 % revenue adjustment — Single Family Residential increase with COS = 11 . 5 % F�t TYPICAL RESIDENTIAL CUSTOMER — MONTHLY UTILITY BILL Current Proposed $ Increase % Increase 2009 2010 from 2009 from 2009 Electric 700 kWh per month $50.66 $55.48 $4.82 9.5% Wastewater 5,200 gallons/month winter quarter use (WQA) $24.48 $27.28 $2.80 11.5% Stormwater 8,600 sq.ft. lot, light runoff $14.26 $14.26 $0.00 0.0% 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 Bill $111.96 $120.45 $8.49 7.6% Total July Monthly Bill $150.30 $160.24 Residential Utilities 11 ' Rate Comparison July Water Use 111 Gallons 11 $150 - 11 1 $- Loveland 1 1 Boulder '09 Ft. Collins AD Denver 1 ' ®® 1 Est PLANT INVESTMENT FEES ( PIFs) DEVELOPMENT CHARGES AND FEES • Water, Wastewater and Stormwater PIFs — reviewed annually; updated biennially — directly related to new customers impact on the system • Electric Development Fees and Charges — updated annually — Recover allocated and actual costs of development • Typical single family residence increases from $ 10 , 696 to PLANT INVESTMENT FEES AND ELECTRIC DEVELOPMENT CHARGES *IMPACT ON SINGLE FAMILY RESIDENTIAL LOT* Current Proposed Change 2009 2010 Water* $3,826 $3,826 0.0% $0 Raw Water $5,203 $5,203 0.0% $0 Wastewater $3, 194 $3,550 11 . 1% $356 Stormwater* * $749 $ 1 ,069 43 .0% $320 Electric* ** $3,027 $3,064 1 .0% $37 Total $15,999 $16,712 4.6% $713 *Typical, based on lot size of 8,600 sq. ft **8,600 sq. ft. lot plus estimated 6, 156 sq. ft. common area; light runoff coefficient ***8,600 sq. ft. lot, 70 ft. frontage, 150 amp service Ci of f� Wastewater, Stormwater & Water PIFs (Including Cash in Lieu of Raw Water Fees) $307000 $25,000 $20,000 $15,000 ' $10,000 . . . $5,000 $- Ft Collins Ft Collins Loveland Boulder Longmont Greeley Windsor 2009 Prop 2010 ` ■ Wastewater PIF Storm Drainage PIF Water PIF Raw Water Fees ORDINANCE NO. 113 , 2009 OF THE COUNCIL OF THE CITY OF FORT COLLINS AMENDING CHAPTER 26, ARTICLE III, DIVISION 4 OF THE CODE OF THE CITY OF FORT COLLINS RELATING TO USER RATES AND CHARGES FOR WATER WHEREAS , the City Council is empowered and directed by Article XII, Section 6, of the City Charter, to fix, establish, maintain and provide for the collection of such rates, fees or charges for utility services furnished by the City as will produce revenues sufficient to pay the costs expenses and other obligations of the water utility, as set forth therein; and WHEREAS , Section 26- 118 of the Code of the City of Fort Collins, requires that the City Manager analyze the operating and financial records of the water utility during each calendar year and recommend to the City Council the user rate fees to be in effect for the following year; and WHEREAS , the City Manager and City staff have recommended to the City Council that the following water use rates be imposed for the billing year beginning January 1 , 2010 ; and NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows : Section 1 . That Section 26- 127 of the Code of the City of Fort Collins is hereby amended to read as follows : Sec. 26-127. Schedule B, meter rates. (a) Residential Rates . ( 1 ) Residential customers with one ( 1 ) dwelling unit. a. Base Charge. Residential customers with one ( 1 ) dwelling unit shall pay a base monthly charge of twelve dollars and forty-six cents ($ 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 ($f . 857 $ 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 thirteen and twenty-one and six-tenths cents ($2 . f 3 5 $2 .216) per one thousand ( 1 ,000) gallons . For all additional gallons used per month, a charge of two dollars and - - fifty-four and nine-tenths cents ($-2 .456 $2 . 549) per one thousand ( 1 ,000) gallons . (2) Residential customers with two (2) dwelling units . a. Base Charge. Residential customers with two (2) dwelling units shall pay a base monthly charge of fourteen dollars and sixty-three cents ($ 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 -2- 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 Monthly Base (inches) Charge 3�4 $ iO , 96$ 11 . 15 1 30 . 5831 . 10 1 %2 83 , f 584 , 56 2 125 . 31127 .44 3 19H5194 . 38 4 300.05305 . 15 6 582 , 06591 , 96 8 '_ ,028.2711045 . 75 (2) Quantity charges. Nonresidential customers shall pay a monthly quantity charge of one dollar and - - fifty-five cents ($f . 524 $ 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 and sbt--ninety-three and eight-tenths cents ($i . 906$ 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 nineteen an one---twenty-two and eight-tenth cents ($2 . f 91 $2 . 228) per one thousand ( 1 ,000) gallons used in the winter season months ofNovember 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 . 739 $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 . -3 - Meter Size Specified Amount (inches) (gallons per month) 3/4 1001000 1 3001000 11/z 6251000 2 1920000 3 11400,000 4 2950000 (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 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 . 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 : See. 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 $25 . 70 $28 . 66 per month user (flat rate) Single-family residential $ 11 . 33 $ 12 . 80 per month plus $2 .262 $2 .488 per user (metered water use) 1 ,000 gallons of either winter quarter water use or 3 ,000 gallons, whichever is greater B Duplex (two - family) $46 . 76 $44 .75 per month residential users (flat rate) Duplex ( two - family) $ f5 . 13 $ 16 . 58 per month plus $2.262 $2 .488 per residential u s e r s 1 ,000 gallons of either winter quarter water use or (metered water use) 4,000 gallons, whichever is greater C Multi-family residential $2.262 $2 .488 per 1 ,000 gallons of winter quarter user (more than two water use, plus a base charge of $-79 $ 1 . 95 per dwelling units including month per dwelling unit served mobile home parks) and winter quarter based nonresidential user D Minor nonresidential $2.262 $2 .488 per 1 ,000 gallons of water use, user measured sewage flow or winter quarter water use, whichever is applicable, plus the following applicable base charge : Size of water meter Basecharge (inches) 3/a or smaller $�4$7 . 18 1 17 .4416 . 58 1 '/z 33 . 3 f33 . 37 2 59 . 0957 . 09 3 98.f991 .22 4 164 . 90144 . 06 6 808 .46631 . 51 8 $ 77 . 88729 . 17 E and F I n t e r m e di ate $2.262$2 .488 per 1 ,000 gallons of water use, nonresidential user and measured wastewater flow or winter quarter water Significant industrial use, whichever is applicable ; plus a surcharge of user $2. f68$2 . 574 per million gallons for each milligram per liter of suspended solids in excess of 2-50235 -2- milligrams per liter; plus a surcharge of $ 1 . 820$2 . 143 per million gallons for each milligram per liter of BOD in excess of 200265 milligrams per liter or a surcharge of $ H22$ 1 . 353 per million gallons for each milligram per liter of COD in excess of 300400 milligrams per liter, or a surcharge of $3 . 259$4 . 007 per million gallons for each milligram per liter of TOC in excess of +00130 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/a or smaller G4$7 , 18 1 f 7 ,4416 , 58 11/z 35, 3 t33 , 37 2 59 0957 , 09 3 98,t991 .22 4 f64 90144, 06 6 808 ,46631 , 51 8 877 , 88729 , 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 AF 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/Z) Rate per 1, 000 gallons BOD 200265 $0:00�20$0 . 002143 COD 3-004000 . 00 f f 220 . 001353 TOC +00130 0,0032590 , 004007 TSS 2-50235 0 . 002680 . 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 $6$5-$0 . 061 per gallon County Generated outside Larimer $6-6�75$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 $-. 05 $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 the 3rd 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 - 5 - ORDINANCE NO . 115 , 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 RATES, FEES AND CHARGES WHEREAS , the City Council is empowered and directed by Article XII, Section 6, of the City Charter to fix, establish, maintain and provide for the collection of such rates, fees or charges for utility services furnished by the City as will produce revenues sufficient to pay the costs, expenses and other obligations of the electric utility, as set forth therein; and WHEREAS , Platte River Power Authority ("Platte River") has increased the City ' s wholesale cost of power approximately 6 . 3 % in 2010 ; and WHEREAS , Platte River has increased the premium cost of renewable power from one cent to 1 . 9 cents per kilowatt hour in 2010; and WHEREAS , the costs associated with funding the energy efficiency and other programs described in the Council-approved Energy Policy and the Advanced Metering Infrastructure project will require additional revenues ; and WHEREAS , the City Manager and City staff have recommended to the City Council the following adjustments to the electric rates for all billings issued with meter readings on or after January 1 , 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 rates, fees and charges . NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows : Section 1 . That Sections 26-464(c) and 26-464(d) of the Code of the City of Fort Collins are hereby amended to read as follows : Sec. 26-464. Residential energy service, schedule R. (c) Monthly rate. The monthly rates for this schedule are as follows : ( 1 ) Fixed charge, per account: fie- Four dollars and sixty-nine four cents ($3-69 $4 . 04) . (2) Demand charge, per kilowatt-hour : Two and eighty-nine one- hundredths cents ($0. 0288 $0 . 0289) , (3 ) Distribution facilities charge, per kilowatt-hour: One and fifty-six eighty-nine one-hundredths cents ($$:6f56 $0 , 0189) , (4) Energy charge, per kilowatt-hour: f)nc Two and eighty=sip twelve one-hundredths cents ($S0.0186 $0 . 0212) . (5) In lieu of taxes and franchise : a charge at the rate of six and zero-tenths (6. 0) percent of all monthly service charges billed pursuant to this Section. (d) Renewable resource. Renewable energy resources, including but not limited to energy generated by the power of wind, may be offered on a voluntary basis to customers at a premium of one and nine-tenths cents ($ . 019) per kilowatt hour. The utility may establish and offer voluntary programs designed to increase and enhance the use of energy generated by renewable energy resources in support of Council adopted policy applicable to the utility. Section 2 . That Sections 26-465 (c) and 26-465 (d) of the Code of the City of Fort Collins are hereby amended to read as follows : Sec. 26-465. Residential demand service, schedule RD. (c) Monthly rate. The monthly rates are as follows : ( 1 ) Fixed charge, per account: Six dollars and eight sixty-seven cents ($-6-fig $6 , 67) , (2) Demand charge, per kilowatt: Four dollars and nineteen twenty-one cents (" $4 .21 ) . (3 ) Distribution facilities charge, per kilowatt-hour: One and twee forty-one one-hundredths cents ($0. 0tt2$0 . 0141 ) , (4) Energy charge, per kilowatt-hour: 6ne Two and eighty-six twelve one- hundredths cents ($0. 0186 $0 . 0212) . (5 ) In lieu of taxes and franchise : a charge at the rate of six and zero-tenths (6 . 0) percent of monthly service charges billed pursuant to this Section. (d) Renewable resource. Renewable energy resources , including but not limited to energy generated by the power of wind, may be offered on a voluntary -2- basis to customers at a premium of one and nine-tenths cents ($ . 019) per kilowatt hour. The utility may establish and offer voluntary programs designed to increase and enhance the use of energy generated by renewable energy resources in support of Council adopted policy applicable to the utility. Section 3 . That Sections 26-466(c), (d) , and (f) of the Code of the City of Fort Collins are hereby amended to read as follows : Sec. 26-466. General service, schedule GS. (c) Monthly rate. The monthly rates for this schedule are as follows : ( 1 ) Fixed charge, per account : a. Single-phase, two-hundred- ampere service : T-vnrFive dollars and eighty-fou one cents ($ 4 $ 5 . 01 ) . b. Single-phase, above two-hundred-ampere service : Se°vert Nine dollars and forty-si sixty-three cents ($ G $9 . 63 ) . c . Three-phase, two-hundred-ampere service : Fom Six dollars and sing-one seventy-eight cents (54-. 6f$6 . 78). d. Three-phase, above two-hundred-ampere service : Eight Ten dollars and seventy-three ninety cents $ 10 . 90) . (2) Demand charge, per kilowatt-hour: a. First two thousand (2 ,000) kilowatt-hours : Four and fourteen sixteen one-hundredths cents ($0 . 04H $ 0 . 0416). b. Next five thousand (5 ,000) kilowatt-hours : One and ninety- five ninety- six one-hundredths cents ($0 . 0 f 95 $0 . 0196) . c . All additional kilowatt-hours : Zero ($0. 00) . (3 ) Demand charge, per kilowatt: a. All kilowatts billed in excess of twenty-five (25) kilowatts : Seven dollars and err twenty-seven cents ($ 24 $7 ,27) , -3 - (4) Distribution facilities charge, per kilowatt-hour: One and forty-two sixty- six one-hundredths cents ($0. 0142 $0 . 0166) . (5 ) Energy charge, per kilowatt-hour: 9ne Two and eighty-six twelve one- hundredths cents ($0. 0 t 86 $0 . 0212) . (6) In lieu of taxes and franchise : a charge at the rate of six and zero-tenths (6 . 0) percent of all monthly service charges billed pursuant to this Section. (d) Renewable resource. Renewable energy resources, including but not limited to energy generated by the power of wind, may be offered on a voluntary basis to customers at a premium of one and nine-tenths cents ($ . 019) per kilowatt hour. The utility may establish and offer voluntary programs designed to increase and enhance the use of energy generated by renewable energy resources in support of Council adopted policy applicable to the utility. (f) Standby service charges. Standby service, if available, will be provided on an annual contract basis at a level at least sufficient to meet probable service demand (in kilowatts) as determined by the customer and approved by the utility according to the following: ( 1 ) The monthly standby distribution charge shall be two three dollars and fifty-five zero cents ($2sr5 $ 3 . 00) per kilowatt of contracted standby service. This charge shall be in lieu of the distribution facilities charge . For all metered kilowatts in excess of the contracted amount, the standby distribution charge shall be sevei nine dollars and sixty-five zero cents ($5-. 65 $9 . 00) per kilowatt. (2) In the event the contractual kilowatt amount is exceeded, the beginning date of the contract period will be reset. The first month of the new contract period will become the current billing month and such month's metered demand shall become the minimum allowable contract demand for the standby service. Requests for standby service may be subject to a waiting period. An operation and maintenance charge may be added for special facilities required to provide standby service . Section 4 . That Sections 26-467(c), (d), (f), and (g) of the Code of the City of Fort Collins are hereby amended to read as follows : Sec. 26-467. General service 50, schedule GS50. -4- (c) Monthly rate. The monthly rates for this schedule are as follows : ( 1 ) Fixed charge, per account: - Twenty-seven dollars and zero seventeen cents ($2-r$27 . 17) . An additional charge of forty dollars and zero cents ($40 . ) may be assessed if telephone communication service is not provided by the customer. (2) Coincident demand charge, per kilowatt: Thirteen dollars and twelve eighteen cents (SH . f2 $ 13 . 18) but not less than one cent ($ . 01 ) per kilowatt-hour. (3 ) Distribution facilities demand charge, per kilowatt : Four Five dollars and thirty-onc twenty cents ($ -3+ $5 . 20) . (4) Energy charge, per kilowatt-hour: ene Two and eighty- six twelve one- hundredths cents ($0. 0 t 86 $0 . 0212) . (5 ) In lieu of taxes and franchise : a charge at the rate of six and zero-tenths (6 . 0) percent of all monthly service charges billed pursuant to this Section. (d) Renewable resource. Renewable energy resources, including but not limited to energy generated by the power of wind, may be offered on a voluntary basis to customers at a premium of one and nine-tenths cents ($ .019) per kilowatt hour. The utility may establish and offer voluntary programs designed to increase and enhance the use of energy generated by renewable energy resources in support of Council adopted policy applicable to the utility. (f) Standby service charges. Standby service, if available, will be provided on an annual contract basis at a level at least sufficient to meet probable service demand (in kilowatts) as determined by the customer and approved by the utility according to the following : ( 1 ) Standby distribution charge . a. The monthly standby distribution charge shall be three- four dollars and sixty-two thirteen cents ($3-62 $4 . 13 ) per kilowatt of contracted standby service. This charge shall be in lieu of the distribution facilities charge . For all metered kilowatts in excess of the contracted amount, the standby distribution charge shall be ten twelve dollars and eighty- six thirty-nine cents ($f0. 86 $ 12 . 39) per kilowatt. b. In the event the contractual kilowatt amount is exceeded, the beginning date of the contract period will be reset. The first month of the new contract period will become the -5 - current billing month and such month's metered demand shall become the minimum allowable contract demand for the standby service . Requests for standby service may be subject to a waiting period. An operation and maintenance charge may be added for special facilities required to provide standby service. (2) Standby generation and transmission charge . All charges incurred by the utility under Platte River Power Authority's applicable tariffs, as may be amended from time to time, will be billed to the customer as a standby generation and transmission charge. (g) Excess circuit charge. In the event a utility customer in this rate class desires excess circuit capacity for the purpose of controlling the available electric capacity of a backup circuit connection, this service, if available, will be provided on an annual contract basis at a level at least sufficient to meet probable backup demand (in kilowatts) as determined by the customer and approved by the utility according to the following : ( 1 ) The excess circuit charge shall be weighty-six cents ($0 .-75$0 . 86) per contracted kilowatt of backup capacity per month. For any metered kilowatts in excess of the contracted amount, the excess circuit charge shall be two dollars and testy—frvefifty-eight cents $2 . 58) per kilowatt. (2) n the event the contractual kilowatt limit is exceeded, a new annual contract period will automatically begin as of the month the limit is exceeded. The metered demand in the month of exceedance shall become the minimum-contracted demand level for the excess circuit charge. Section 5 . That Sections 26-468(c), (d), (f), and (g) of the Code of the City of Fort Collins are hereby amended to read as follows : Sec. 26-468. General service 750, schedule GS750. (c) Monthly rate. The monthly rates for this schedule are as follows : ( 1 ) Fixed charge, per account : Thirty-two dollars and sixty seventy-seven cents ($3-0.60 $32 , 77) . a. Additional charge for each additional metering point: Twenty-five dollars and ninety-two cents ($25 . 92) . -6- b. An additional charge of forty dollars and zero cents ($40 .) for each metering point may be assessed if telephone communication service is not provided by the customer. (2) Coincident demand charge, per kilowatt: Twelve dollars and nincty-two ninety-eight cents ( 2 $ 12 . 98) but not less than one cent ($0 . 01 ) per kilowatt-hour. (3 ) Distribution facilities demand charge, per kilowatt: a. First seven hundred fifty (750) kilowatts : Ftmr Five dollars and tie twelve cents ($4—. 25 $ 5 . 12) . b. All additional kilowatts : Two Three dollars and ire seventy-one cents ($2-.91- $ 3 . 71 ) . (4) Energy charge, per kilowatt-hour: E)nc and cighty-fince Two and nine- one-hundredths cents ($0. 0183 $0 . 0209) . (5 ) In lieu of taxes and franchise : a charge at the rate of six and zero-tenths (6 . 0) percent of all monthly service charges billed pursuant to this Section. (d) Renewable resource. Renewable energy resources, including but not limited to energy generated by the power of wind, may be offered on a voluntary basis to customers at a premium of one and nine-tenths cents ($ . 019) per kilowatt hour. The utility may establish and offer voluntary programs designed to increase and enhance the use of energy generated by renewable energy resources in support of Council adopted policy applicable to the utility. (f) Standby service charges. Standby service, if available, will be provided on an annual contract basis at a level at least sufficient to meet probable service demand (in kilowatts) as determined by the customer and approved by the utility according to the following : ( 1 ) Standby distribution charge. a. The monthly standby distribution charge shall be two three dollars and eightq4bur thirty-nine cents ($ $4 $3 . 39) per kilowatt of contracted standby service . This charge shall be in lieu of the distribution facilities charge . For all metered kilowatts in excess of the contracted amount, the standby distribution charge shall be eight ten dollars and ft€ty seventeen cents ($8 .-5-2 $ 10 . 17) per kilowatt. -7- b. In the event the contractual kilowatt amount is exceeded, the beginning date of the contract period will be reset. The first month of the new contract period will become the current billing month and such month's metered demand shall become the minimum allowable contract demand for the standby service . Requests for standby service may be subject to a waiting period. An operation and maintenance charge may be added for special facilities required to provide standby service. (2) Standby generation and transmission charge. All charges incurred by the utility under the Platte River Power Authority's applicable tariffs, as may be amended from time to time, will be billed to the customer as a standby generation and transmission charge. (g) Excess circuit charge. In the event a utility customer in this rate class desires excess circuit capacity for the purpose of controlling the available electric capacity of a backup circuit connection, this service, if available, will be provided on an annual contract basis at a level at least sufficient to meet probable backup demand (in kilowatts) as determined by the customer and approved by the utility according to the following : ( 1 ) The excess circuit charge shall be fifty-nitre seventy-one cents ($0 . 59 $0 . 71 ) per contracted kilowatt of backup capacity per month. For any metered kilowatts in excess of the contracted amount, the excess circuit charge shall be one two dollars and seventy-seven thirteen cents ($i —. 'R $2 . 13 ) per kilowatt. (2) In the event the contractual kilowatt limit is exceeded, a new annual contract period will automatically begin as of the month the limit is exceeded. The metered demand in the month of exceedance shall become the minimum contracted demand level for the excess circuit charge. Section 6 . That Section 26-469(b) of the Code of the City of Fort Collins is hereby amended to read as follows : Sec. 26-469. Special area floodlighting, schedule FL. (b) Monthly rate . The monthly rates (including a six-and-zero-tenths-percent charge in lieu of taxes and franchise) are as follows : -8- ( 1 ) Charge per lamp, mercury vapor: a. ne-hundred-seventy-five-watt : Fifteen Seventeen dollars and sever twenty-six cents ($i5 . 76 $ 17 .26) . b. Two-hundred-fifty-watt: Eighteert Twenty dollars and six thirty-two cents ($ t 8 , 5 6 $20 . 32) , c . Four-hundred-watt: Twenty4btr Twenty-six dollars and thirty-three sixty-four cents ($24 . 33 $26 . 64) . (2) Charge per lamp, high-pressure sodium: a. Seventy-watt: Six Seven dollars and sixty-six twenty-nine cents ($6:66 $7 ,29) , b. One-hundred-watt: Nine Ten dollars and fbrty-two thirty- one cents ($H-.42 $ 10 . 31 ) . C. One-hundred-fifty-watt: Fourteen Sixteen dollars and ninety thirty-two cents ($ t4 .90 S16 . 32) . d. Two-hundred-fifty-watt: Nincteen Twenty dollars and eighty-one cents ($i9-. $20 . 81 ) . e. Four-hundred-watt: Tie Twenty-seven dollars and teen forty-eight cents ($25.f0 $27 .48) , Section 7 . That Section 26-470(c) of the Code of the City of Fort Collins is hereby amended to read as follows : Sec. 26-470. Traffic signal service, schedule T . (c) Monthly rate. The monthly rates (including a six-and-zero-tenths-percent charge in lieu of taxes and franchise) are as follows : ( 1 ) Fixed charge, per account: Forty-nine Fifty-one dollars and fifty-one eighty-two cents ($ f$ 51 . 82) . (2) Charge, per kilowatt-hour: dam Five and eighty-six thirty-two one- hundredths cents ($0. 04S6 $0 . 0532) , -9- (3 ) Equipment rental charges, when applicable, will be determined by cost analysis by the utility. Service extensions and signal installations made by the utility shall be paid for by the City General Fund, subject to material and installation costs at the time of installation. Section 8 . That the amendments to Chapter 26 of the City Code contained herein shall go into effect for all bills issued with meter readings on or after January 1 , 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 , Mayor ATTEST : City Clerk Passed and adopted on final reading on the 3rd day of November, A.D . 2009 . Mayor ATTEST : City Clerk - 10- 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 (3/4) 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 (3/4) 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 ($ 0 .27) 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, roominghouses, 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 S 61970 . $79530 . 1 21 ,730 , 1 '/z 4 f m5 f 0 .459300 . 2 65 , 330 69 ,070 . 3 0 157,920 . 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 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 . Mayor 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) and the sizc of the water meter for nomesidential users 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 $35f 94, $35550 , B and C $2M69 . $2 ,490 . for each dwelling unit or mobile home space Water meter Category size (inches) Fee D, E, F 3/a $ 6,206 .. $79100 . 1 f6 �36r 171880 , 1 '/z 2$396 . 319490 . 2 501963 , 555290 , 3 ift484 . 1509130 . 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 -2- plant for the applicable category (including both contributed wastewater volume and volume related to infiltration and inflow), shall be calculated utilizing the following formula: SPIF = Site Flow x [Flow$ + (BOD x BOD,) + (TSS x TSS$)] + I&I Flow x [Flow$ + (200 mg/l 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 including b contributed wastewater volume and volume related to infiltia and inflow I&I Flow = That proportionate share of peak day flow due to infiltration and inflow as allocated to user' s site flow discharge . Flow$ _ $5 .. 3 f $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/l BODS = $ 0 .0 f f 6 $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/l TSS$ = $0 , 009$0 , 0110 per mg/l (unit cost of facilities attributable to treating TSS) -3 - (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 (inches) Pnenak flow (gallons per day) 3/4 / V7600 1 �41 , 510 1 %z 32`T921660 2 �24,670 3 f % H5121680 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 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 , 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 . 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. ff the initial fifty (50) percent is not paid within sixty (60) rei stied at the current rate as of thc rcissuance 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 nineteen sixty-eight thousandths cents ( H $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 scvcnty-scvcn 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 sixty-two-seventy- eight dollars ($i ,-2fr2. $ 1 ,278 .) per dwelling unit; b. For a single-family panel size with two-hundred-amp service (nonelectric heat or electric heaf) or with one-hundred-fifty-amp service (electric heat) , two thousand one hundred forty-three- sixty-five dollars ($2 , 143 . $2, 165) per dwelling unit; C . For a multi-family panel size with one-hundred-fifty-amp service (nonelectric heat) , eight hundred forty-two fifty-two dollars ($ft42-. $ 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 five twenty dollars ($ f ,5$5 . $ 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 . -2- (c) A Building Site Charge ("BSC ") for any new or modified residential service shall be paid prior to issuance of a building permit for the related construction or modification. The BSC shall be based upon the current rates as of the time of issuance of the building permit. The BSC shall be the total of the secondary service charges, and any additional charges, determined as follows : ( 1 ) The secondary service charge shall be as follows : Secondary Charge (up to 65 Plus Per Foot Charge For Each Service Size feet) Foot Over 65 1 /0 service $-658 , 00 $ 666 , 00 "$4 . 84/Foot 4/0 service $$i 7 . 00 $ 823 . 00 $�6$ 5 . 80/FOOt 350 kCM $903 . 00 $910 , 00 $ � .z6$ 7 . 30/Foot Service 1 /0 Mobile $5 i 4 . 00 $ 520 , 00 N/A Home Service 4/0 Mobile $-644 . 00 $ 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 the initial fifty (50) percent is not paid within sixty (60) days of the date of the invoice, the invoice shall no longer be valid mid may be rcissucd at the curren rate as of the reissuance date. 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, -3 - 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. (b) The ECF shall be the total of the site footage charge, kVA service entrance charge and systems modification charge, to be determined as follows : ( 1 ) The site footage charge shall be the combined total of: a. Four and nine hundred nineteen sixty-eight thousandths cents ($0 . 049H $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 Maur twenty cents ( 4 $38 .20) per lineal foot of the developed site abutting a dedicated street or roadway. (2) The kVA service entrmice-charge shall be determined as follows . fifty-- seven dollars and finrty-four cents ($48 .44) per WA of service entrance r a. For customer electric loads served by the utility the kVA service charge shall be : i. Utility owned transformers : The kVA service charge shall be fifty-nine dollars and fifty-four cents ($ 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 : -4- i. Utility owned transformers : The kVA service charge shall be forty-eight dollars and thirty cents ($48 . 30) per kilovolt-amp (kVA) of generation 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 ($38 .20) per kilovolt-amp (kVA) of generation service rating in excess of the service load rating paid per subparagraph (2)a.ii. above. Such ratings shall be determined by the General Manager. (3 ) A system modifications charge will apply when a new or modified service will require infrastructure in addition to or different from the standard base electrical system model. The differential costs associated with such system modifications will be included in the calculated ECF . (c) A Building Site Charge ("BSC ") for extending primary circuitry to the transformer for any new or modified nonresidential service shall be invoiced and paid in the same manner and at the same time as the ECF is invoiced and paid pursuant to Subsection (a) of this Section. The BSC shall be the total of the primary circuit charge, transformer installation charge and any additional charges, determined as follows : ( 1 ) The primary circuit charge for service from the utility source to the transformer shall be as follows : a. For single-phase service, a charge of eight dollars and ninety cents ($ 8 . 90) per foot of primary circuit; b. For three-phase service, a charge of nineteen dollars and twelve ( 2 $ 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 two three hundred fifty - severr seventeen dollars ( 7 . $ 1 ,317 . ) per transformer; b. For three-phase service , a charge of two thousand three four hundred thirty—five nine dollars ($2 ,335 . $2,409 .) per transformer. -5 - (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. 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 . 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 four thousand four hundred twenty six thousand three hundred thirteen dollars ( 0.$ 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 the 3rd 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