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HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 10/03/2006 - SECOND READING OF ORDINANCE NO. 140, 2006, AMENDIN ITEM NUMBER: 8 AGENDA ITEM SUMMARY DATE: October 3, 2006 FORT COLLINS CITY COUNCIL STAFF: Cameron Gloss SUBJECT Second Reading of Ordinance No. 140, 2006, Amending Chapter ter 26 Article VI, Division 4 of the Code of the City Relating to Rates and Charges for Electric Service. RECOMMENDATION Staff recommends adoption of the Ordinance on Second Reading. EXECUTIVE SUMMARY This Ordinance was unanimously adopted on First Reading on September 5, 2006 and uses Utility reserve funds to cover all except 5%of the 25%mandated service rights fee for Poudre Valley Rural Electric Authority(PVREA) customers in the Southwest Enclave Annexation area. ORDINANCE NO. 140, 2006 OF THE COUNCIL OF THE CITY OF FORT COLLINS AMENDING CHAPTER 26, ARTICLE VI, DIVISION 4 OF THE CODE OF THE CITY RELATING TO RATES AND CHARGES FOR ELECTRIC SERVICE WHEREAS, the City Council is empowered and directed by Article XII, Section 6, of the Charter of the City of Fort Collins, Colorado, to by ordinance from time to time fix, establish, maintain and provide for the collection of such rates, fees or charges for utility services furnished by the City as will produce revenues sufficient to pay the costs, expenses and other obligations of the electric utility, as set forth therein; and WHEREAS, the City Manager has recommended to the City Council that the City Code be amended to allow the City Council to reduce electric rates for Service Rights Fees in annexed areas at the time of annexation in order to mitigate the economic impacts to the properties in this annexation. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows: Section 1. That paragraph (h) of Section 26-464 of the Code of the City of Fort Collins is hereby amended to read as follows: (h) Service rights fee in certain annexed areas. A fee for defraying the cost of acquisition of service rights from Poudre Valley Rural Electric Association(PVREA) shall be charged for each service in areas annexed into the city after April 22, 1989, if such area was previously served by PVREA. The service rights fee will be collected monthly for a period of ten (10) consecutive years following the date of acquisition by the City of electric facilities in such area from PVREA. If service was previously provided by PVREA,the fee shall be twenty-five(25)percent of charges for electric power service. For services that come into existence in the affected area after date of acquisition,the fee shall be five(5)percent of charges for electric power service. In the event that the City Council has determined that a reduction of the service rights fee is justified in order to mitigate the economic impacts to a lot or parcel of land at the time of annexation of said lot or parcel of land,the service rights fee charged pursuant to this Subsection may be reduced by the City Council pursuant to a schedule set forth in the ordinance annexing said parcel or lot.The service rights fee charged pursuant to this Subsection shall not be subject to a charge in lieu of taxes and franchise otherwise required in this Section. Section 2. That paragraph (i) of Section 26-465 of the Code of the City of Fort Collins is hereby amended to read as follows: (i) Service rights fee in certain annexed areas. A fee for defraying the cost of acquisition of service rights from Poudre Valley Rural Electric Association(PVREA) shall be charged for each service in areas annexed into the city after April 22, 1989, if such area was previously served by PVREA. The service rights fee will be collected monthly for a period of ten (10) consecutive years following the date of acquisition by the City of electric facilities in such area from PVREA. If service was previously provided by PVREA,the fee shall be twenty-five(25)percent of charges for electric power service. For services that come into existence in the affected area after date of acquisition,the fee shall be five(5)percent of charges for electric power service. In the event that the City Council has determined that a reduction of the service rights fee is justified in order to mitigate the economic impacts to a lot or parcel of land at the time of annexation of said lot or parcel of land,the service rights fee charged pursuant to this Subsection may be reduced by the City Council pursuant to a schedule set forth in the ordinance annexing said parcel or lot. The service rights fee charged pursuant to this Subsection shall not be subject to a charge in lieu of taxes and franchise otherwise required in this Section. Section 3. That paragraph 0) of Section 26-466 of the Code of the City of Fort Collins is hereby amended to read as follows: 6) Service rights fee in certain annexed areas. A fee for defraying the cost of acquisition of service rights from Poudre Valley Rural Electric Association(PVREA) shall be charged for each service in areas annexed into the city after April 22, 1989, if such area was previously served by PVREA. The service rights fee will be collected monthly for a period of ten (10) consecutive years following the date of acquisition by the City of electric facilities in such area from PVREA. If service was previously provided by PVREA, the fee shall be twenty-five(25)percent of charges for electric power service. For services that come into existence in the affected area after date of acquisition,the fee shall be five(5)percent of charges for electric power service. In the event that the City Council has determined that a reduction of the service rights fee is justified in order to mitigate the economic impacts to a lot or parcel of land at the time of annexation of said lot or parcel of land,the service rights fee charged pursuant to this Subsection may be reduced by the City Council pursuant to a schedule set forth in the ordinance annexing said parcel or lot.The service rights fee charged pursuant to this Subsection shall not be subject to a charge in lieu of taxes and franchise otherwise required in this Section. Section 4. That paragraph (1) of Section 26-467 of the Code of the City of Fort Collins is hereby amended to read as follows: (1) Service rights fee in certain annexed areas. A fee for defraying the cost of acquisition of service rights from Poudre Valley Rural Electric Association(PVREA) shall be charged for each service in areas annexed into the city after April 22, 1989, if such area was previously served by PVREA. The service rights fee will be collected monthly for a period of ten (10) consecutive years following the date of' acquisition by the City of electric facilities in such area from PVREA. If service was previously provided by PVREA, the fee shall be twenty-five(25)percent of charges for electric power service. For services that come into existence in the affected area after date of acquisition,the fee shall be five(5)percent of charges for electric power service. In the event that the City Council has determined that a reduction of the service rights fee is justified in order to mitigate the economic impacts to a lot or parcel of land at the time of annexation of said lot or parcel of land,the service rights fee charged pursuant to this Subsection may be reduced by the City Council pursuant to a schedule set forth in the ordinance annexing said parcel or lot.The service rights fee charged pursuant to this Subsection shall not be subject to a charge in lieu of taxes and franchise otherwise required in this Section. Section 5. That paragraph(m) of Section 26-468 of the Code of the City of Fort Collins is hereby amended to read as follows: (m) Service rights fee in certain annexed areas. A fee for defraying the cost of acquisition of service rights from Poudre Valley Rural Electric Association(PVREA) shall be charged for each service in areas annexed into the city after April 22, 1989, if such area was previously served by PVREA. The service rights fee will be collected monthly for a period of ten (10) consecutive years following the date of acquisition by the City of electric facilities in such area from PVREA. If service was previously provided by PVREA,the fee shall be twenty-five(25)percent of charges for electric power service. For services that come into existence in the affected area after date of acquisition,the fee shall be five(5)percent of charges for electric power service. In the event that the City Council has determined that a reduction of the service rights fee is justified in order to mitigate the economic impacts to a lot or parcel of land at the time of annexation of said lot or parcel of land,the service rights fee charged pursuant to this Subsection may be reduced by the City Council pursuant to a schedule set forth in the ordinance annexing said parcel or lot.The service rights fee charged pursuant to this Subsection shall not be subject to a charge in lieu of taxes and franchise otherwise required in this Section. Section 6. That paragraph (d) of Section 26-469 of the Code of the City of Fort Collins is hereby amended to read as follows: (d) Service rights fee in certain annexed areas. A fee for defraying the cost of acquisition of service rights from Poudre Valley Rural Electric Association(PVREA) shall be charged for each service in areas annexed into the city after April 22, 1989, if such area was previously served by PVREA. The service rights fee will be collected monthly for a period of ten (10) consecutive years following the date of acquisition by the City of electric facilities in such area from PVREA. If service was previously provided by PVREA,the fee shall be twenty-five(25)percent of charges for electric power service. For services that come into existence in the affected area after date of acquisition,the fee shall be five(5)percent of charges for electric power service. In the event that the City Council has determined that a reduction of the service rights fee is justified in order to mitigate the economic impacts to a lot or parcel of land at the time of annexation of said lot or parcel of land,the service rights fee charged pursuant to this Subsection may be reduced by the City Council pursuant to a schedule set forth in the ordinance annexing said parcel or lot.The service rights fee charged pursuant to this Subsection shall not be subject to a charge in lieu of taxes and franchise otherwise required in this Section. Introduced, considered favorably on first reading, and ordered published this 5th day of September, A.D. 2006, and to be presented for final passage on rd day of October A.D. 2006. i Mayo ATTEST: City Clerk Passed and adopted on final reading on the 3rd day of October, A.D. 2006. Mayor ATTEST: City Clerk