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HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 11/02/2010 - ITEMS RELATING TO UTILITY RATES AND CHARGES FOR 20 DATE: November 2, 2010 AGENDA ITEM SUM RY STAFF: Brian Janonis _ Ellen Switzer T COLLINS CITY COUN IL SUBJECT Items Relating to Utility Rates and Charges for 2011. A. First Reading of Ordinance No. 112, 2010, Amending Chapter 26 of the City Code to Revise Water Rates, Fees and Charges. B. First Reading of Ordinance No. 113, 2010, Amending Chapter 26 of the City Code to Revise Wastewater Rates, Fees and Charges. C. First Reading of Ordinance No. 114, 2010, Amending Chapter 26 of the City Code to Revise Electric Rates, Fees and Charges. D. First Reading of Ordinance No. 115, 2010, Amending Chapter 26 of the City Code to Revise Electric Development Fees and Charges. EXECUTIVE SUMMARY The Ordinances propose the following rate increases for monthly utility billings: % Increase Water 3.0% across the board Wastewater 9.0% across the board Electric 6.5% on average) The changes would take effect for billings with meter readings on or after January 1, 2011. The water and wastewater rate increases are across the board to all customer classes. The electric rate increase is proposed to vary by rate class from 0% to 10%. There is no change in the monthly rate for stormwater. A typical single family customer's monthly bill will increase $8.91 from $129.75 to$138.66 or 6.9%. A small reduction(1-3%)in electric development fees for 2011 is also proposed. No changes in plant investment fees are planned for water, wastewater or stormwater. BACKGROUND / DISCUSSION A. Monthly Water Rates (Ordinance No. 112, 2010) Ordinance No. 112,2010, proposes a 3%water rate increase. The increase is across the board and applies to all rate classes. A cost of service study was conducted in 2009 and the 2010 water rate classes were realigned based on the study. With the proposed rate,a typical single family residential customer's monthly bill will increase 3%as shown in the table below: Single Family 2010 Monthly Proposed 2011 Typical Use Water Bill Monthly Water Bill $ Increase % Increase January- 5000 gallons $23.43 $24.13 $0.70 3% July-21,000 gallons $63.22 $65.11 $1.89 3% Monthly Average based on seasonal use of 117,131 $34.83 $35.87 $1.04 3% gallons per year November 2, 2010 -2- ITEM 16 Although 3%water rate increases were implemented in 2007 and in 2010,water operating revenues decreased 13.4% between 2006 and 2009. The reduction in use is thought to be a combination of conservation,weather and economic factors. The proposed 2011 rate increase is required to fund operations, capital improvements and maintain debt service coverage. B. Monthly Wastewater Rates (Ordinance No. 113, 2010) Ordinance No. 113, 2010, proposes a 9%wastewater rate increase. The increase is across the board and applies to all rate classes. A 2009 cost of service study was conducted and wastewater rate classes were realigned in 2010. With the proposed increase, a typical residential customer's bill will increase from $26.23 to $28.59 or $2.36 per month. The typical customer is based on 4,800 gallons of winter quarter water use. Council has approved a series of annual wastewater rate increases starting in 2008. The prior rate increases,as well as the proposed 2011 increase,are necessary 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 to prepare for future regulation based improvements at the Mulberry Water Reclamation Facility. An 8% increase is projected for 2012. In addition, staff is proposing a clarification to the Code to set a default winter quarter water use for residential customers who did not establish a winter quarter average(WQA)during the prior January-March. The winter quarter water use approximates the customer's indoor water use and is defined in Section 26.206 of the City Code as "the average monthly amount of water billed to the user during the preceding months of January, February and March." City Code does not address customers who have not been at the premise to establish a WQA. Current administrative practice is to assign such single family customers a default WQA of 5,200 gallons. The 5,200 gallons was based on a historic average water use. With the lower water use during the last few years, the average WQA for single family residential customers has dropped to 4,800 gallons per month. Winter quarter water use for duplexes and multifamily units is also now lower than historical averages. Based on this trend of reduced winter quarter water use, staff is recommending that the Code be amended to specify.the default amounts for all residential customer classes as follows: Default Winter Quarter Average Current Administrative Default Proposed To Be Included Residential Rate Class Practice In City Code Single Family 5,200 gallons WQA 4,800 gallons WQA Duplex 8,500 gallons WQA 7,200 gallons WQA Multi Family 4,200 gallons/unit WQA 3,400 gallons/unit WQA These default amounts will only be used for customers who have not established a WQA for the premise during the previous January, February and March. The reduction in default WQA amounts will result in the loss of about$38,000 per year. C. Monthly Electric Rates (Ordinance No. 114, 2010) A system average 6.5% electric rate increase is proposed for 2011. This rate increase will not be applied to all customer rate classes across the board. Based on a cost of service study conducted by staff in 2010, the rates are proposed to vary by rate class as follows: Proposed Electric Rate Increase for 2011 Residential Energy Rate 10.0% Residential Demand Rate 10.0% General Service small commercial 0.0% General Service 50 medium commercial 5.1% General Service 750 (large commercial, industrial 5.6% Traffic Signals 6.7% Floodlights 0.0% Average System Increase 6.5% November 2, 2010 -3- ITEM 16 The above recommendations are based on modified cost of service results but are capped with a limit of no more than a 10% increase for any customer class. The Council Finance Committee reviewed the results of the electric cost of service study and the staff recommendations at its September 20, 2010 committee meeting and supported this modified cost of service implementation. Fort Collins' electric rates will remain among the lowest in the state. The impacts of these rate recommendations for typical residential and commercial customers are shown in the following table: 2011 Electric Rate Impacts on Typical Customers Average Proposed Rate Class Rate Class 2010 2011 $ Inc. % Inc. % Inc. Residential 700 kWh/month $54.43 $59.94 $5.51 10.1% 10.0% Residential Demand 1,400 kWh/month, 10 kW $102.00 $112.42 $10.42 10.2% 10.0% General Service 2,300 kWh/month $193.61 $194.41 1 -$2.20 -1.1% 0.0% General Service 50 54,000 kWh/mo, 140 kW $3,277 $3,443 $166 5.1% 5.1% General Service 750 2,000,000 kWh/month 3600 kW $98,932 $104,453 $5,521 5.6% 5.6% The 6.5% system-wide increase is due to an increase in purchase power rates and the second year of the Energy Policy implementation. The majority of the rate increase results from a 6.1%wholesale rate increase from Platte River Power Authority. This increase in purchase power cost equates to a 4.7% retail rate increase. Secondly, as part of the 2010 budget,Council approved a significant increase to the Utilities'energy services budgets in orderto implement additional programs targeted to meeting Energy Policy and Climate Action Plan goals. In 2010, half of this energy services budget increase was funded from reserves with the remainder funded from a 1.8%rate increase. The 2010 plan called for a second 1.8% rate increase in 2011 to continue the energy conservation and efficiency programs at the 2010 level. Platte River's 2011 6.1% purchase power rate increase is due to several key factors: • Reduced surplus energy sales • Increased operations and maintenance costs o Major maintenance work at Craig Unit 1 o Ongoing O&M of aging plants o Environmental costs—primarily mercury removal at Rawhide • Increased fuel expense due to higher utilization of natural gas peaking plants • Increased financing and depreciation expense for transmission put into service • Decrease in interest income • Capital investment The proposed electric rate Ordinance also deletes an outdated reference to rental charges for traffic equipment. The rental charges related to an early traffic signal system(1970s era)which was purchased by the Light and Power Fund and then repaid by the traffic department through the referenced rental charges. November 2, 2010 -4- ITEM 16 Monthly Rate Increase Summary The following chart summarizes the impact of the proposed rate changes on a typical residential customer: 2011 Utility Rates—Im act to TypicaI Single Family Customer Current Proposed $ 2010 2011 Increase % Increase Electric 700 kWh per month $54.43 $59.94 $5.51 10.1% Wastewater 4,800 al/mo WQA $26.23 $28.59 $2.36 9.0% Stormwater 8,600 sq ft lot, light run off $14.26 $14.26 $0.00 0.0% Water Monthly Average based on seasonal use of 117,131 gallons per year $34.83 $35.87 $1.04 3.0% Total Typical Monthly Utility Bill $129.75 $138.66 8.91 6.9% The following graphs compare Fort Collins current 2010 and proposed 2011 rates with the current 2010 and estimated 2011 rates of several surrounding communities. The graphs are based on the same typical customer shown in the table above with the exception of water,which is based on 21,000 gallons,a typical July use. The estimated 2011 rate increases for the comparison cities are based on information obtained by staff through phone inquiries. These are not approved rates for any of the cities or Xcel. Denver wastewater and stormwater rates have not been released and so the 2011 graph reflects 2010 wastewater and stormwater rates for Denver. 2010 Rates 2010 Residential Rate Comparison July Water Use 21,000 Gallons $250 $200 E $150 c 0 $100 $50 O O m O32 U O O N C N N (D ` O` N 0 LL m X U X C7 X v� Q X 0 U OElectric ®Water ❑Wastewater ❑Stormwater November 2, 2010 -5- ITEM 16 2011 Estimated Rates Estimated 2011 Residential Rate Comparison July Water Use 21,000 Gallons $250 $200 $150 C0 C 69 $100 $50 T N O O. Wj O ci x x x c 6 Oa J J mX 7 vHcOil LL p W Q W p Electric 0 Water 0 Wastewater 0 Stormwater D. Electric Development Fees (Ordinance No. 115, 2010) Electric development fees recover both actual on-site costs(building site charges)and allocated off-site costs(electric capacity charges)to serve commercial or residential development. These fees are typically adjusted annually to reflect cost increases; however, some material costs have decreased slightly and labor costs have remained constant. The proposed 2011 Electric Development Fee Ordinance(Item D)reflects a 1-3% reduction in costs. The following table shows the impacts on a sample residential and commercial development. Typical Single Family Lot 8600 square feet, 70 foot of street frontage, 150 amp service, 4/0 secondary service Current 2010 Proposed 2011 $ Change % Change $3,221 $3,139 -$83 -2.6% Model Commercial Development 82,000 sq ft, 1900 ft street frontage, 250 ft primary srv, 600 amps, 208Volt, 3-phase, 1-transformer Current 2010 Proposed 2011 $ Change % Change $31,361 $31,079 -$282 -0.9% Water,wastewater and stormwater plant investment fees were revised for 2010. There are no changes recommended for 2011. November 2, 2010 -6- ITEM 16 FINANCIAL / ECONOMIC IMPACTS The rate Ordinances are projected to increase 2011 annual operating revenues of the Water Fund by 3%, the Wastewater Fund by 9%,and the Light and Power Fund by 6.5%. The projected revenue from the rate increases was included in the 2011-2012 budget projections. The proposed rate ordinances will increase costs for typical residential customers by$8.91 per month if their water and electric use remain unchanged. Utility programs can help customers to reduce their water and electric use to lessen the financial impact of the rate increases. ENVIRONMENTAL IMPACTS Funding from the proposed electric rate increase will allow the Utilities to continue programs and services aimed at meeting the goals and objectives of the Energy Policy and Climate Action Plan. Water and wastewater rates provide funding for conservation programs, and environmental regulatory compliance. STAFF RECOMMENDATION Staff recommends adoption of the Ordinance on First Reading. BOARD / COMMISSION RECOMMENDATION The Water Board recommends approval of the Water, Wastewater and Stormwater budget and rate increases for Water and Wastewater by unanimous vote (7-0). The Electric Board recommends against the approval of the Light and Power budget and electric rate ordinances by a vote of 3-2. Two of the three Electric Boardmembers voting against approval stated that they believed the City should reduce budgets for energy efficiency during this period of citywide budget reductions. One of the Electric Boardmembers voting against approval expressed a concern that an increase in employee salaries should have been included in the budget in order to retain qualified staff. Minutes from both Board meetings are attached. PUBLIC OUTREACH Postcard notification of the proposed electric rate changes was mailed to out-of-city electric customers on October 13, 2010 and notice was published in the Coloradoan on October 17. Preliminary utility rate increases were shown in the recommended budget document. The Utilities has planned additional outreach for all customers prior to the effective dates of the rate changes. ATTACHMENTS 1. Water Board Minutes, September 16, 2010 2. Electric Board Minutes (draft), October 6, 2010 3. Finance Committee, excerpt from minutes, September 20, 2010 3. Power Point presentation ATTACHMENT Excerpt from Approved Water Board September 16, 2010, Minutes 2011-2012 Budget (Presentation available upon request) Water Resources and Treatment Operations Manager Kevin Gertig thanked Phil Ladd and Rita DeCourcey, utilities financial analysts, Ellen Switzer, utilities financial operations manager, and Bill Switzer, utilities rate analyst, who have put in very hard work on this year's budget during the absence of a Utilities Finance and Budget Manager. Board discussion: Water fund 2011 operating revenues are projected to be 6 percent lower than budgeted 2010. Revenue projections for 2011 have been revised down to 150 gpcd (gallons per person per day) compared to the previous projections of 155 gpcd. Projections were decreased to recognize the significant drop in consumption in 2009. Projected 2009 use was 155 gpcd and actual consumption was 135 gpcd, a 13 percent decrease. Most of the drop in demand is attributed to the wet summer(precipitation was 140 percent of average), although water conservation and the economy likely played a part in it as well. After reviewing revenue collections through July 2010, demand is projected to be at 140 to 145 gallons per capita per day for 2010. Is consumption only going down due to conservation? What about weather, leak detection, etc.? It's difficult to tell what all is driving this, but the weather, water conservation and likely the economy are all factors. The number of customers likely plays a part as well, but it is difficult to determine due to student fluctuations and seasonal irrigation customers. Utilities will lose our largest wastewater contract customer at the start of 2011, costing $1.7 million in lost revenue annually. They've elected not to discharge to our system due to the success of their own system which they have developed over time. Other commercial customers have the option to meter their flows now, which will also result in reductions. Rates for typical users are still based on domestic loads. The Wastewater fund is not keeping pace with our cumulative rate increases on total operating revenue. The Legislative, Finance and Liaison (LFL) Committee met on September 14 to discuss the 2011-12 budget. During that meeting, there was discussion as to why Fort Collins' monthly residential rates are higher than other regional cities. Committee members felt these cities may be borrowing from the future and not providing a good example to follow. Stormwater operating revenues are stable. Debt issues were paid off in 2008 and 2009; four remain for future pay off. Capital projects decrease from $3.5 million in 2011 to $1 million in 2012 with the last installment of the Canal Importation and Pond Outfalls (CIPO) project taking place in 2011. Stormwater revenue does not see much growth, but some will occur with taking on a few more customers in the Southwest Annexation. Stormwater revenues do not change unless there are rate changes or developable areas increase. - 1 - The residential customer impact with a 10.1 percent electric rate increase, 9.0 percent wastewater increase and 3.0 percent water increase means a high bill month would increase about $9.76 or 6.17 percent. Mr. Gertig shared about the future challenges for Utilities: • A succession planning initiative is beginning, which has an indirect impact on the budget. • Nutrient requirements are coming for removing phosphorus and nitrogen from wastewater. Neither plant'is set up for advanced removal of these elements. Staff will bring this to the Board and Council with impact to rates. Board Member Connor shared the LFL Committee's recommendations with the full Board: 1) A 3 percent water rate increase is appropriate or perhaps too low. A progressive increase in rates is the favored approach, and the Board may want to consider recommending a 3 percent rate increase in 2012 rather than 0 percent, and recommending more than 3 percent in both 2011 and 2012. 2) Utilities staff undertakes long term analysis of future needs and develops projections, given the future climate of revenue decreases. 3) The committee recommends that serious consideration for going to a"pay as you go" system to retire debt. Board discussion: How much debt is the water system faced with now and are reserves being used? Reserves are not being used. Ms. DeCourcey will forward the debt data to Board members. What is the time frame and anticipated cost on the nutrient requirements? A 5-8 year time frame is coming on the nutrient requirements. The upgrades could run around $50 million for each plant. Motion: Board Member Connor moved that the Water Board recommends to City Council that they support the proposed 2011-2012 budget for the Water, Wastewater, and Stormwater funds. Board Member Brown seconded the motion. Board members discussed concepts for how an incremental increase might be devoted, such as early debt retirement versus incentive programs. Discussion on the motion: Vice Chairperson Balderson remarked about the expectation in business that budgets remain flat. It's not a matter of failure to recognize that it takes that much to run the Utilities and address these critical needs, but the organization must not do some other things if necessary. Vote on the motion: It passed unanimously. - 2 - Staff note (not included in minutes): In follow up with Water Board Chair Gina Janett, the above motion recommending the overall budget was intended to include the recommended rate increases for both water and wastewater. Motion: Board Member Connor moved that the Water Board recommends to City Council that they support a 3 percent rate increase in the Water fund for 2012 and consider small increases both in 2011 and 2012 in all three sectors of the Water Utility—Water, Wastewater, and Stormwater—in anticipation of future needs and to avoid large rate increases in the future. Board Member Eccleston seconded the motion. Discussion on the motion: Board Member Connor understands the issues caused when increases happen, but feels it's important to avoid significant increases all at once. By getting ahead of the curve and eliminating interest payments, it allows lower rates in perpetuity. The interest payments are over and above the money needed to keep pace with future needs. Chairperson Janett noted we will be learning about the cost to address deferred maintenance when more data comes forth from the asset management initiative. Vote on the motion: It passed unanimously. Motion: Board Member Connor moved that the Water Board recommends to City Council that they take a portion of the increased rates to accelerate debt service. Board Member Brown seconded the motion. Vote on the motion: It passed unanimously. *** Board Member Dornfest left the meeting at 5:11 p.m. Chairperson Janett inquired about the I percent of construction capital projects donated to Art in Public Places funding. For Utilities' capital projects where art cannot be directly associated to the project and the public has no access, such as underground pipe replacements, pumps, etc., can this requirement be eliminated in those cases? Motion: Chairperson Janett moved that the Water Board recommends to City Council that they consider eliminating the Art in Public Places funding for Utility projects not accessible to the public. Board Member Bovee seconded the motion. Discussion on the motion: Staff was asked to develop the figure represented by this type of change. Vote on the motion: It passed unanimously. - 3 - ATTACHMENT Excerpt from Unapproved Electric Board Minutes, October 6, 2010 2011-2012 Budget, Rates and Cost of Service Study (Presentation available upon request) Utilities Executive Director Brian Janonis introduced this topic by referring to the September budget meeting for boards and commissions, as well as the start of the Council work sessions on the budget. 2011-2012 Budget Utilities Financial Operations Manager Ellen Switzer presented the details of the 2011- 2012 Light and Power Budget. Board discussion: • A concern was expressed about placing all renewables in a discretionary fund, as discretionary"items can be a target. This is an undesirable term. (Staff replied that the renewable offers were made to the Enviromnental Health Outcome because it met that team's request for results. This did not indicate that the renewable offers were considered discretionary.) • In response to Council's question related to our rate increases and how they compare with the other Platte River Power Authority (Platte River) partner cities, Platte River analyzed retail rates back to 2005. Longmont increased 11.6 percent, Loveland increased 10.5 percent, Fort Collins increased 12.4 percent, and Estes Park increased 16.1 percent. • A board member expressed concern with remarks that Fort Collins' rate is lower than Xcel Energy's rate. If the rate minus the wholesale rate is compared, Fort Collins and Xcel Energy rates are about the same. The gap has been closed on the distribution rates. Can we cut our distribution costs if costs out of our control, (such as the wholesale rate from Platte River) go up? Separation of these costs helps the board's understanding. • Will the same solar rebate be continued, even if the price of solar cells decreases 50 percent? • Last year, part of the Energy Services increase was funded from reserves. The Automated Metering Infrastructure (AMI) program begins to have an impact in 2013 when fully installed. A board member expressed concern that the City is cutting costs everywhere they can, and it seems to be counter to that effort to increase an area, such as Energy Services, which may be considered discretionary. • A board member shared his sense that Council is supportive of rate and sales tax increases. 1 Cost of Service and Rates Utilities Rate Analyst Bill Switzer presented details of the electric cost of service study upon which rate recommendations were based. The last Cost of Service study was completed in 2002 and is normally completed every five years, typically in conjunction with a rate increase. A new study was completed now to provide a foundation, as the Electric Utility will be asked to look at many types of rate structures in the coming years. • The scale of our goals is such that energy savings in all classes must be considered, not just those classes, such as commercial, where it's easier to realize more benefit. • If all classes were moved to full cost of service this year, and again next year, it may cause a lack of stability. The true cost of service is a target that changes as our customers change. • When presented on September 20, Council Finance Committee agreed with limiting the percent rate change to 10 percent. • The distribution slice of the rate structure absorbs the differential when not adjusting to full cost of service. • Council has asked us to present rate structure alternatives in the IQ 2011. Development Fees • How does Fort Collins fare against neighboring communities on fees? Mr. Janonis responded that our development fees overall are a little higher. However, the portion being driven by Utilities is normally lower than our neighboring communities. Our raw water fees are very low comparatively. • A board member recommended that terminology, "on average", be added to the monthly electric rate increases as it's defined for the community. • Board members were very pleased with the level of analysis done by Utilities Finance and Budget staff. It provides the necessary logic for recommending the changes, and they appreciated seeing the allocation data. Board members discussed some of their concerns with portions of the proposed budget and potential basis for voting against recommending the budget. . 2 Motion: Board Member Graham moved the Electric Board recommends to the City Council that the Council approve the City Manager's recommended 2011- 2012 budget for the Light and Power Fund, the proposed cost of service-based 2011 electric rate increases, and 2011 electric development fee reductions. Board Member Bihn seconded the motion. Vote on the motion: 2 for, 3 against. The motion fails. Board Member Barnish stated his reason for voting against the motion. In this time of tight budgets in the City, there should also be budget cuts in discretionary areas of the budget, namely Energy Services. He would be inclined to vote for the budget and any necessary, modest increase if Energy Services spending was restored to 2009 levels during this two-year budgeting cycle. Board Member Harris voted against the motion for the following reason. He is concerned about the across-the-board salary freezes, which impact Light and Power employees. He sees this as impacting the Electric Utility's ability to recruit and retain quality, experienced Light and Power employees, causing a significant and prolonged unfavorable effect on our system, e.g. reliability. Vice Chairperson Yurash voted against the motion, because he feels the size of the rate increase for Energy Services should have been reduced. 3 ATTACHMENT Excerpt from the minutes of the September 20, 2010 Council Finance Committee meeting: Utility Rate Increases Update Ellen Switzer advised committee members of the current rate increase status • Proposed electric rate increases — 2011 +6.5% — 2012 +6.2% — Recommended increases vary by rate class per cost of service study recommendations vary from 0% to 1O% • Components of the 2011 retail rate increase: — PRPA rate increase (6.1% wholesale) 4.7% retail inc — 2 Phase of energy policy implementation 1.8% retail inc If approved, effective for meter readings on or after January 1, 2011 3 Electric Rate Options 1. Implement a 6.5 percent rate across the board for all customer classes 2. Implement the full cost of service increases and decreases 3. Implement the cost of service with no class increasing more than 10 percent and no class decreasing (modified COS) What is Cost of Service? A COS fills in the blanks in our electric rate tariffs a Fixed charge x$/per account a Demand (purchase power) charge x$/kWh or kW + Distribution Facilities charge x$/kWh or kW 4 Energy (Purchase Power) Charge $/kWh 4 PILOTS 6% of above The following costs come mostly from the budget: —Purchased Power —Operations Et Maintenance —Administrative Et General / Billing Et Collections —Customer Assistance/Energy Services —Average 10 Year Capital —Non-Operating Income (credit) —Change to reserves (difference between COS and revenue target +6.5%) Cost of service recommendations: • Rate classes more closely aligned with costs • Rate class cost components accurately identified • Foundation is laid for analyzing impacts of various future proposed rate structures The Utility staff asked if the Council Finance Committee supports these cost of service recommendations and the proposed 10 percent cap on 2011 electric rate increases. 1 ATTACHMENT Doug Hutchinson stated that the hybrid approach recommended by the Utility staff makes sense and he supports it. Ben Manvel stated that he agreed. 2011 Summary — Monthly Electric Rate Increases +65% (Vary by rate class per cost of service in 2011 (0% -10%) — Monthly Water Rates +3% — Monthly Wastewater Rates +9% — Monthly Stormwater Rates -- no change — Electric Development Fees Reduction of 1% to 3% — Water, WW, SW Plant Investment Fees -- no change Darin suggested sending a one page summary to all of council explaining the highlights. 2 ATTACHMENT 4 2011 Utility Rates Electric Development Fees Fort Collins City Council Meeting November 2 , 2010 r,�t_ Collins 1 Monthly Utility Rates City of Fort Collins 1 2011 Proposed Electric Rates Electric rates are proposed to increase 6 . 5 % on average Components of the 2011 retail rate increase : • PRPA wholesale rate increase (6 . 1 % ) 4 . 7% • 2nd phase of energy policy increase 1 . 8 % 2011 proposed monthly increase includes a 6 . 5% revenue adjustment and a cost of service adjustment to align revenues with costs Proposed rate adjustments vary by customer class of r,�tf 3 2011 Proposed Electric Rates Residential ( Both Energy & Demand Rates) 10 . 0% General Service (Small Commercial ) 0 . 0% General Service 50 (Medium Commercial ) 5 . 1 % General Service 750 (Large Com , Industrial ) 5 . 6% Traffic Signals 6 . 7% Floodlights 0 . 0% Average System Increase 6 . 5% City of Fort Collins 2 Electric Rates Remain Among the Lowest in the State (All Rate Classes — Residential (graph), Small & Large Commercial and Industrial) Colorado Utilities Electric Rate Increases Since 2005 Avg coop $9O a, PM. Avg. Investor $8$ $80 $75 A . Muni leas PRPA 2i.996 8 = $70 Estes Park N $65 1g.196 c a 9 $60 Fort Collins $55 iz.496 Q $50 Loveland 10.5% Longmont $45 $4O Jan 05 July 05 Jan 06 Jul06 Jan 07 Jul07 Jan O8 Ju108 Jan 09 Jul09 Jan 10 Jul 10 5 Proposed 2011 Water Rates Water rates are proposed to increase 3 % across the board * Increase needed to fund operations , capital improvements , and maintain debt service coverage •2009 water operating revenues were $3 .4 M ( 13% ) less than in 2006 *Conservation , weather, economy may all be contributing to lower sales City of F�prt Collins `�` 6 3 Proposed 2011 Water Rates Impact to Typical Single Family Customer Proposed 2010 2011 $ % Monthly Monthly Increase Increase Water Bill Water Bill January $23 .43 $24 . 13 $0 . 70 3% 5,000 gal. July $63 . 22 65 . 11 $ 1 . 89 3% 21 ,000 gal . Mo. Average (Total of $34 . 83 $35 . 87 $ 1 . 04 3% 117, 131 gal . per year) Fort Collins 7 Proposed 2011 Wastewater Rates W W Rates are proposed to increase 9 % across the board • Rate increases to fund capital improvements , maintain debt service coverage •W W billings are based on water use and continue to decline * Revenue reductions anticipated for commercial customers metering consumptive flows Fort Collins 8 4 Proposed 2011 Wastewater Rates Impact to Typical Single Family Customer Actual Proposed $ 2010 2011 Increase % Increase Monthly Monthly Monthly Monthly WW Bill WW Bill WW Bill WW Bill 4800 Gal/Mo $26 . 23 $28 . 59 $2 . 36 9 % W Q Avg r� of t` Collins f� 9 Winter Quarter Water Use Wastewater Code Addition • Used for residential Wastewater billings & defined in Code as : ". . . the average monthly amount of water billed to the user during the preceding months of Jan . , Feb. and March. " • Current procedure : Single family wastewater customers who have not established a winter quarter water use are charged for 5 ,200 gallons/month — This is an historical average & is not in Code — Single family winter quarter use has decreased to �4 , 800gal/mo — Duplex & multi family winter quarter use has also declined • Code addition would set default amounts for residential customers who have not established winter quarter water use : — Single Family 4 , 800 gal/mo — Duplex 7 , 200 gal/mo — Multi Family 3 ,400 gal/unit/mo C;tyof F�prt Collins `�` 10 5 2011 Stormwater Rates Staff is not recommending any changes for stormwater rates . �.F�t_ Collins 11 Impact to Typical Single Family Customer Current Proposed $ Increase % Increase 2010 2011 from 2010 from 2010 Electric 700 kWh per month $54 .43 $59 . 94 $5 . 51 10 . 1 % Wastewater 4 ,800 gallons/month winter quarter use WQA $26 .23 $28 . 59 $2 . 36 9 . 0% Stormwater 8 ,600 s .ft. lot, light runoff $ 14 .26 $ 14 . 26 $0 . 00 0 . 0% Water Annual Average 117K al/ r $34 .83 1 $35 . 87 $ 1 . 04 3 . 0% Total Typical Monthly Ut Bill $129 .75 $ 138.66 $8 .91 6.9% City of Fort Collins 12 6 Front Range Rate Comparison = 2010 Typical Single Family Customer - Electric, Water, Wastewater and Stormwater 2010 Residential Rate Comparison July Water Use 21 ,000 Gallons $250 $200 t $150 c f w $100 $50 2 o m O 3 U> O i X J ■ Electric ■ Water ❑ Wastewater ■ Stormwater r t Collins 13 Front Range Rate Comparison - Estimated 2011 Typical Single Family Customer - Electric, Water, Wastewater and Stormwater Estimated 2011 Residential Rate Comparison July Water Use 21,000 Gallons $250 $200 t $150 c 0 w $100 $50 w ry W E W W W v X � ry W W V 10 X O O) U = X c in CID ` X O 2 to U J J ` li m v W Q W ■ Electric ■ Water o Wastewater ■ Stormwater CItyOFort Collins 14 7 Development Fees City of ZOv 15 Electric Development Fees • Fees will be reduced : - 1 % to -3 % — Lower material costs — No increase for labor — If approved , effective January 1 , 2011 �,�rof t` Collins 16 8 Plant Investment Fees • Water , Wastewater, and Stormwater Plant Investment fees were revised in 2010 • No changes are recommended for 2011 City of Fort Collins 17 2011 Utility Rates & Fees Summary • Monthly Rates : — Electric +6 . 5% on average , rate classes vary 0% - 10% — Water +3% across the board — Wastewater +9% across the board — Stormwater no change • Development Fees and PIFs — Electric Development Fees -- reduction of 1 % to 3 % — Water, WW, SW Plant Investment Fees -- no change City of Fort Collins 18 9 ORDINANCE NO . 112, 2010 OF THE COUNCIL OF THE CITY OF FORT COLLINS AMENDING CHAPTER 26 OF THE CODE OF THE CITY OF FORT COLLINS TO REVISE WATER RATES , FEES AND CHARGES WHEREAS , the City Council is empowered and directed by Article XII, Section 6, of the Charter of the City of Fort Collins, Colorado, to 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 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 Water Board considered the proposed water rates, fees and charges for 2011 at its September 16, 2010 meeting, and recommended approval as proposed by unanimous vote ; and WHEREAS , the City Manager has recommended to the City Council that the following water rates, fees and charges be imposed for the billing year beginning January 1 , 2011 . 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 ofthe 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 fbrty-si eighty- three cents ( 6 $ 12 . 83 ) . 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 -two alid eight-tei ninety-eight and six- tenths cents (fig $ 1 . 986) per one thousand ( 1 ,000) gallons. For the next six thousand (6 ,000) gallons used per month, a charge of two dollars and -one and six-teiitl twenty-eight and two- tenths cents ($-2 .2t6 $2 .282) per one thousand ( 1 ,000) gallons . For all additional gallons used per month, a charge of two dollars and fifty-four - sixty-two and five-tenths cents ($2 . 549$2 . 625 ) per one thousand ( 1 ,000) gallons . (2) Residential customers with two (2) dwelling units . a. Base Charge. Residential customers with two (2) dwelling units shall pay a base monthly charge of f6urtee fifteen dollars and sixty-thTcc seven cents ($ 14 . 63$ 15 . 07) . 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 - - inety-one and three- tenths cents ($ f . 857$ 1 . 913 ) 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-tenthsnineteen and nine-tenths cents ($2 . t 3 5$2 . 199) per one thousand ( 1 ,000) gallons . For all additional gallons used per month, a charge of two dollars and forty-five and six-teii fifty-three and zero-tenths cents ($2 .456$2 . 530) per one thousand ( 1 ,000) gallons . (3 ) Residential customers with more than two (2) dwelling units . a. Base Charge. Residential customers with more than two (2) dwelling units shall pay a base monthly charge of twelve dollars and thirty-si seventy-three cents ($i -2 . 36$ 12 . 73 ) for the first dwelling unit and four dollars and twelve twenty-four cents ($4-.1-2$4 .24) for the second and each additional dwelling unit. b. Quantity Charge. Residential customers with more than two (2) dwelling units shall pay a monthly quantity charge of one dollar and seventy-nine mid f6ur-tenths eighty-four and eight-tenths cents ($ 1 . 794$ 1 . 848) 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 - - thirty-one and zero-tenths cents ($2 .-243 $2 . 310) per one thousand ( 1 ,000) gallons used in the summer season months of May through October. The meter reading date shall generally determine the -2- seasonal monthly quantity charge; however, no customer shall be billed more than six (6) full billing cycles at the summer quantity charge . (b) Nonresidential Rates. ( 1 ) Base charge. Nonresidential customers shall pay a base monthly charge based on meter size as follows : Meter Size (inches) Monthly Base Charge 3/4 f f . 15 $ 11 .48 1 3 f . f 0 32 . 03 1 '/a S4 . 56 87 . 10 2 4 131 .26 3 194 . 38 200 .21 4 305 . f 5 314 . 30 6 609 . 72 8 5 11077 , 12 (2) Quantity charges. Nonresidential customers shall pay a monthly quantity charge of one dollar and fifty-five fifty-nine and seven- tenths cents ($1—. 55$ 1 . 597) 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-thTee and eight= tenths ninety-nine and six-tenths cents ($ f . 938 $ 1 . 996) per one thousand ( 1 ,000) gallons used in the summer season months of May through October. The meter reading date shall generally determine the seasonal monthly quantity charge ; however, no customer shall be billed more than six (6) full billing cycles at the summer quantity charge . (3 ) Charges for excess use. Monthly water use in excess of the amounts specified in the following table shall be billed at two dollars and twenty-nine and five-tenths cents ($2 .2-2g $2 .295) per one thousand ( 1 ,000) gallons used in the winter season months of November through April. Monthly water use in excess of the amounts specified below shall be billed at two dollars and -cight mid six-tMiths eighty-seven and zero-tenths cents ($Z 786$2 . 870) 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 (inches) Specified Amount (gallons per month) 3/4 100,000 1 3005000 1 '/2 6255000 2 1 ,200,000 3 11400,000 4 255009000 (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 for all billings based on meter readings after January 1 , 2011 . Introduced, considered favorably on first reading, and ordered published this 2nd day of November, A.D . 2010, and to be presented for final passage on the 16th day of November, A.D . 2010, Mayor ATTEST : City Clerk Passed and adopted on final reading on the l6th day of November, A.D . 2010 . Mayor ATTEST : City Clerk -4- ORDINANCE NO . 113 , 2010 OF THE COUNCIL OF THE CITY OF FORT COLLINS AMENDING CHAPTER 26 OF THE CODE OF THE CITY OF FORT COLLINS TO REVISE WASTEWATER 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 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 Mulberry Wastewater Reclamation Plant is undergoing a upgrade of the plant's 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 to generate sufficient revenues to repay the debt necessary to finance these improvements; and WHEREAS , the Water Board considered the proposed wastewater rates, fees and charges for 2011 at its September 16, 2010 meeting, and recommended approval as proposed by unanimous vote ; and WHEREAS , the City Manager has recommended to the City Council that the following wastewater rates be imposed for the billing year beginning January 1 , 2011 . NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows : Section 1 . That Section 26-280 of the Code of the City of Fort Collins is hereby amended to read as follows : Sec. 26-280. Service charges established by category. The schedule of rates for each category described in § 26-279 shall be as follows : Category Class of Customer Rate A Single-family residential $28 .66 $31 .24 per month user (flat rate) Single-family residential $ 12 . 80 $ 13 . 95 per month plus $2 .488 $2 . 712 per user (metered water use) 1 ,000 gallons of either winter quarter water use or 3 ,000 gallons, whichever is greater. For single family customers who have not established a winter quarter water use at the service address, a system average of 4, 800 gallons per month shall be billed. B Duplex (two-family) $44. 75 $48 . 78 per month residential users (flat rate) Duplex (two-family) $ 16 . 58 $ 18 . 07 per month plus $2 .488 $2 . 712 per residential users (metered 1 ,000 gallons of either winter quarter water use or water use) 4,000 gallons, whichever is greater. For duplex customers who have not established a winter quarter water use at the service address, a system average 7 ,200 gallons shall be billed. C Multi-family residential $2.4$8 $2 . 712 per 1 ,000 gallons of winter quarter user (more than two water use, plus a base charge of $i�5 $2 . 13 per month dwelling units including per dwelling unit served. For multi family customers mobile home parks) and who have not established a winter quarter water use at winter quarter based the service address, a system average of 3 ,400 gallons nonresidential user per living unit shall be billed. D Minor nonresidential user $2 .488 $2 . 712 per 1 ,000 gallons of water use, measured sewage flow or winter quarter water use, whichever is applicable, plus the following applicable base charge : Size of water meter (inches) Base charge 3/a or smaller �g $7 . 83 1 i 6 . 5 g 18 . 07 1 '/z 33 . 37 36 . 37 2 57 .09 62 .23 3 9f .z2 99 .43 4 H4 . 06 157 . 03 6 63f. 5f 688 . 35 8 794 . 80 -2 - E and F Intermediate nonresidential S2488 $2 . 712 per 1 ,000 gallons of water use, user and Significant measured wastewater flow or winter quarter water use, industrial user whichever is applicable; plus a surcharge of $2 . 574 $2 . 805 per million gallons for each milligram per liter of suspended solids in excess of 235 milligrams per liter; plus a surcharge of $2 . f 43 $2 . 336 per million gallons for each milligram per liter of BOD in excess of 265 milligrams per liter or a surcharge of Sf . 353 $ 1 .475 per million gallons for each milligram per liter of COD in excess of 400 milligrams per liter, or a surcharge of $4 . 007 $4 . 367 per million gallons for each milligram per liter of TOC in excess of 130 milligrams per liter, whichever is applicable . The user shall pay this calculated amount plus the applicable base charge set forth below : Size of water meter (inches) Base charge 3/a or smaller g $7 . 83 1 16 , 58 18 .07 1 %z 33 , 37 36 . 37 2 57 , 69 62 .23 3 91 .22 99 .43 4 144,06 157 . 03 6 63t , 5f 688 . 35 8 729 , 17 794 . 80 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/l) Rate per 1, 000 gallons BOD 265 $9 , 002143 $0 , 002336 COD 400 $00t353 0 , 001475 TOC 130 0 , 004007 0 , 004367 TSS 235 0 . 002574 0 . 002805 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 charges Fees shall be set forth as in § 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 basis Cost plus 15 % 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 County $0.061 $0 . 066 per gallon Generated outside Larimer County $0. 09-2 $0 . 100 per gallon b . Recreational vehicle sanitary waste holding tanks : Residential customers of the City No charge for single disposal of Fort Collins Wastewater Utility Others $2-. 60 $2 . 18 base fee plus $0 . 061 $0 . 066 per gallon (6) Miscellaneous fees Determined on a case-by-case basis based on direct costs plus 15 % indirect costs -4- Section 4 . That the amendments to the Chapter 26 of the City Code contained herein shall go into effect for all billings after January 1 , 2011 . Introduced, considered favorably on first reading, and ordered published this 2nd day of November, A.D . 2010, and to be presented for final passage on the 16th day of November, A.D . 2010. Mayor ATTEST : City Clerk Passed and adopted on final reading on the 16th day of November, A.D. 2010 . Mayor ATTEST : City Clerk -5 - ORDINANCE NO . 1141 2010 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 costs are increasing due to reduced surplus sales, increased operating costs for aging plants and environmental mitigation, increased natural gas expenses for peaking plants, increased financing costs, and continuing capital investment; and WHEREAS , Platte River Power Authority will increase the City ' s wholesale cost of power approximately 6 . 1 % in 2011 ; and WHEREAS , the increased wholesale power costs will require a 4 . 7% increase in the City ' s electric rates ; and WHEREAS, a 1 . 8% electric rate increase was approved in 2010 as the first of two required to fund the associated costs with funding energy efficiency programs for meeting the goals of 2009 Energy Policy; and WHEREAS , a final 1 . 8% rate increase is required in 2011 to provide the remainder of funding for the implementation of the 2009 Energy Policy; and WHEREAS , the Electric Board considered the proposed electric rates at its October 6, 2010 meeting, and voted 3 to 2 against recommending approval, based on concerns about the lack of reduction in energy efficiency program expenditures and the lack of salary increases for employees ; and WHEREAS , the City Manager and staff have recommended to the City Council the following adjustments to the electric rates for all billings issued with meter readings on or after January 1 , 2011 ; and WHEREAS , based on the foregoing, it is the desire of the City Council to amend Chapter 26 of the City Code to revise electric rates, fees and charges . NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows : Section 1 . That Section 26-464(c) of the Code of the City of Fort Collins is hereby amended to read as follows : Sec. 26-464. Residential energy service, schedule R. (c) Monthly rate. The monthly rates for this schedule are as follows : ( 1 ) Fixed charge, per account: Three dollars and ifinety- six ninety-one cents ($3-:% $ 3 . 91 ) . (2) Demand charge, per kilowatt-hour: Two and cighty-nine eighty-four one- hundredths cents ($0. 0-289$0 . 0284) . (3 ) Distribution facilities charge, per kilowatt-hour: O=-Two and seventy-si� twenty one-hundredths cents ($0. 0f76$0 . 0220) . (4) Energy charge, per kilowatt-hour: Two and tie forty-eight one- hundredths cents ($0. 0212$0 . 0248) . (5 ) In lieu of taxes and franchise : a charge at the rate of six and zero-tenths (6 . 0) percent of all monthly service charges billed pursuant to this Section. Section 2 . That Section 26-465 (c) of the Code of the City of Fort Collins is hereby amended to read as follows : Sec. 26-465. Residential demand service, schedule RD. (c) Monthly rate. The monthly rates are as follows : ( 1 ) Fixed charge, per account: Six dollars and €fifty-three thirty-two cents ($6,53 $ 6 , 32) , (2) Demand charge, per kilowatt: Four Three dollars and twenty-oneeighty- seven cents ( > $ 3 . 87) . (3 ) Distribution facilities charge, per kilowatt-hour: One and twenty-eight eighty-eight one-hundredths cents ($0:0f28 $0 . 0188) . (4) Energy charge, per kilowatt-hour: Two and twee-forty-eight one- hundredths cents ($0.0212 $0 . 0248) . (5 ) In lieu of taxes and franchise : a charge at the rate of six and zero-tenths (6 . 0) percent of monthly service charges billed pursuant to this Section. Section 3 . That Sections 26-466(c) 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 : -2- ( 1 ) Fixed charge, per account : a. Single-phase, two-hundred-ampere service : Three dollars and frve twenty-one cents ($3-. 05$3 .21 ) . b. Single-phase, above two-hundred-ampere service : Eight Nine dollars and one forty- six cents (*$.$1-$9 .46) . c . Three-phase, two-hundred-ampere service : Four dollars and ninety-fiveeighty-eight cents ( 5$4 . 88). d. Three-phase, above two-hundred-ampere service : Nine Eleven dollars and thirty- eight fifty-six cents ($9-3-8$ 11 . 56) . (2) Demand charge, per kilowatt-hour: a. First two thousand (2,000) kilowatt-hours : Four mi sixteenThree and sixty-two one -hundredths cents ($0:046$0. 0362) , b . Next five thousand (5 ,000) kilowatt-hours : One and ninety- six seventy-eight one-hundredths cents ($6:6f96$0 . 0178) . 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 Six dollars and - fifty-seven cents ($3=27 $ 6 . 57) . (4) Distribution facilities charge, per kilowatt-hour: One and sixty fifty-eight one-hundredths cents ($0. 0f60$0 . 0158) . (5 ) Energy charge, per kilowatt-hour: Two and twee forty-eight one- hundredths cents ($0.0212$ 0 . 0248) . (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. (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 : -3 - ( 1 ) The monthly standby distribution charge shall be three dollars and zero two cents ($53-66$3 . 02) 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 nine dollars and zero six cents ($9�-. @6$9 . 06) 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), and (f) of the Code of the City of Fort Collins are hereby amended to read as follows : Sec. 26-467. General service 50, schedule GS50. (c) Monthly rate. The monthly rates for this schedule are as follows : ( 1 ) Fixed charge, per account: Twenty-sixEighteen dollars and eighfy- sixthirty-six cents ($26. 86$ 18 . 36) . An additional charge of forty dollars and zero cents ($40 .) may be assessed if telephone communication service is not provided by the customer. (2) Coincident demand charge, per kilowatt: Thirtect Twelve dollars and eighteen eighty cents ($ 13 . f 8 $ 12 . 80) but not less than one cent ($ . 01 ) per kilowatt-hour. (3 ) Distribution facilities demand charge, per kilowatt: Four dollars and seventy-seveeighty-two cents ($4—. 77$4 . 82). (4) Energy charge, per kilowatt-hour: Two and tie forty-eight one- hundredths cents ($0. 02i2$0 . 0248) . (5 ) In lieu of taxes and franchise : a charge at the rate of six and zero-tenths (6 . 0) percent of all monthly service charges billed pursuant to this Section. (f) Standby service charges. Standby service, if available, will be provided on an annual contract basis at a level at least sufficient to meet probable service demand (in kilowatts) as determined by the customer and approved by the utility according to the following : ( 1 ) Standby distribution charge. -4- a. The monthly standby distribution charge shall be four three dollars and ninety-one cents ($ -.0+$ 3 . 91 ) 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 twelve eleven dollars and seventy-three cents ($f2 . 03 $ 11 . 73 ) 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 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. Section 5 . That Sections 26-468(c) , (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: T+firty--twoFifty-four dollars and ei - scveiieleven cents ($32.87$54 . 11 ) . a. Additional charge for each additional metering point: Twenty-five Forty-seven dollars and ninety-two eighty-one cents ( 2$47 . 81 ) . b. An additional charge of forty dollars and zero cents ($40 .) for each metering point may be assessed if telephone communication service is not provided by the customer. (2) Coincident demand charge, per kilowatt: Twelve dollars and ninety- cightsixty-one cents ($12-. %$ 12 . 61 ) but not less than one cent ($0 . 01 ) per kilowatt-hour. (3 ) Distribution facilities demand charge, per kilowatt: -5 - a. First seven hundred fifty (750) kilowatts Four dollars and seventy-five cents ($4-.-70$4 . 75) . b. All additional kilowatts : Three Two dollars and seventeeneighty-four cents ($3-.1-7$2 . 84). (4) Energy charge, per kilowatt-hour: Two and nineforty-five one-hundredths cents ($0 . 0-209$0 . 0245) . (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. (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 tlnee two dollars and thirteen ninety- seven cents ($3-. 1-5$2 . 97) 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 nine eight dollars and thirtq= nine ninety-one cents ($9-.3r9$ 8 . 9 1 ) 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 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 -6- demand (in kilowatts) as determined by the customer and approved by the utility according to the following : ( 1 ) The excess circuit charge shall be sixty-five sixty-three cents ($ .-6-5$0 . 63 ) 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 dollar and ninety-five eighty-nine cents ($1-. 9-5$ 1 . 89) 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 26-470(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: Sixty-three dollars and cighty_ twoiinety cents ( 2$63 . 90) . (2) Charge, per kilowatt-hour: Five and twenty-twofifty-five one-hundredths cents ($0. 0522$0 . 0555) . (3 ) > will be determined by Cost analysis by the 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 7 . That the amendments to Chapter 26 of the City Code contained herein shall go into effect for all billings based on meter readings after January 1 , 2011 . -7- Introduced, considered favorably on first reading, and ordered published this 2nd day of November, A.D . 2010, and to be presented for final passage on the 16th day of November, A.D . 2010 , Mayor ATTEST : City Clerk Passed and adopted on final reading on the l6th day of November, A.D . 2010 . Mayor ATTEST : City Clerk - 8 - ORDINANCE NO . 115 , 2010 OF THE COUNCIL OF THE CITY OF FORT COLLINS AMENDING CHAPTER 26 OF THE CODE OF THE CITY OF FORT COLLINS TO REVISE ELECTRIC DEVELOPMENT FEES AND CHARGES WHEREAS , the City Council is empowered and directed by Article XII, Section 6, of the City Charter to fix, establish, maintain and provide for the collection of such rates, fees or charges for utility services furnished by the City as will produce revenues sufficient to pay the costs, expenses and other obligations of the electric utility, as set forth therein; and WHEREAS , the City Council has determined that it is appropriate for new development to contribute its proportionate share of providing capital improvements ; and WHEREAS , Section 26-471 of the City Code requires that the electric development fees be reviewed annually by the City Manager and that the fees be presented to the City Council for approval no less than annually; and WHEREAS , on October 20, 20091 the City Council adopted Ordinance No . 118 , 2009, which established the electric development fees now in effect; and WHEREAS , the Electric Board considered the proposed electric fees and charges at its October 6, 2010 meeting, and voted 3 to 2 against recommending approval based on concerns about the lack of reduction in energy efficiency program expenditures and the lack of salary increases for employees ; and WHEREAS , the City Manager and staff have recommended to the City Council the following adjustments to the electric development fees and charges for all invoices paid on or after January 1 , 2011 ; 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(b) and (c) of the Code of the City of Fort Collins is hereby amended to read as follows : Sec. 26-472. Residential electric development fees and charges. (b) The ECF shall be the total of the site footage charge, dwelling charge and systems modification charge, to be determined as follows : ( 1 ) The site footage charge shall be the combined total of: a. Four and nine hundred silty-eight- fifty-four thousandths cents ( $0.04968 $0 . 04954) per square foot of developed site square footage, including all applicable tracts but excluding the area dedicated public rights-of-way; and b. Nine Eight dollars and ninety seventy-eight cents ( $ 8 . 78) 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 severity- eight- eighty-five dollars ( $ 1 ,278 . $ 1 ,285 . ) per dwelling unit; b. For a single-family panel size with two-hundred-amp service or with one-hundred-fifty-amp service (electric heat), two thousand one hundred sixty-five seventy-six dollars ( $2 , 1fr5 $2, 176 .) per dwelling unit; c . For a multi-family panel size with one-hundred-fifty-amp service (nonelectric heat), eight hundred fifty-two fifty-six dollars $ 856 .) per dwelling unit; d. For a multi-family panel size with two-hundred-amp service or with one-hundred-fifty-amp service (electric heat), one thousand five hundred twenty-six dollars ($i , 5-20. $ 1 , 526 .) per dwelling unit. (3 ) A system modifications charge will apply when a new or modified service will require infrastructure in addition to or different from the standard base electrical system model . The differential costs associated with such system modifications will be included in the calculated ECF . (c) A Building Site Charge ("BSC ") for any new or modified residential service shall be paid prior to issuance of a building permit for the related construction or modification. The BSC shall be based upon the current rates as of the time of issuance of the building permit. The BSC shall be the total of the secondary service charges , and any additional charges, determined as follows : ( 1 ) The secondary service charge shall be as follows : -2 - Secondary Charge (up to 65 feet) Plus Per Foot Charge For Each Service Size Foot Over 65 1 /0 service $ 666-00 $639 , 00 $4.$4 $4 . 66/Foot 4/0 service $82-3 . 00 $ 813 . 00 55 . 80 $5 . 83/Foot 350 kCM Service $9}6-00 $ 830 , 00 $ 's@ $6 . 56/Foot 1 /0 Mobile Home $ 5 -20 . 00 $499 . 00 N/A Service 4/0 Mobile Home $ 649 . 00 $638 , 00 N/A 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 (b) and (c) of the Code of the City of Fort Collins is hereby amended to read as follows : Sec . 26-473. Nonresidential electric development fees and charges. (b) The ECF shall be the total of the site footage charge, WA service charge and systems modification charge, to be determined as follows : ( 1 ) The site footage charge shall be the combined total of: a. Four and nine hundred sib-cight- fifty-four thousandths cents ( $0.04968 $0 . 04954) per square foot of developed site square footage, including all applicable tracts but excluding the area of dedicated public rights-of-way; and b. Thirty-eight dollars and twenty zero cents ( $38 .2-0 $38 . 00) per lineal foot of the developed site abutting a dedicated street or roadway. (2) The WA service charge shall be determined as follows . a. For customer electric loads served by the utility the WA service charge shall be : i. Utility owned transformers : The kVA service charge shall be fifty-nine dollars and fifty-four six cents ($59 .54 $ 59 . 06) per kilovolt-amp (kVA) of service load rating. -3 - ii. Customer owned transformers : The kVA service charge shall be (arty-nine- forty-eight dollars and forur sixty-one cents ($49 .44 $48 . 61 ) per kilovolt-amp (kVA) of service load rating. b. For the utility to receive customer generation in excess of the customer' s electric service provided by the utility, the following KVA service charge will also apply: i. Utility owned transformers : The kVA service charge shall be forty-eight dollars and fi irty-sixty-four cents ( 6 $48 . 64) 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 twen nineteen cents ($3-8 .26 $38 . 19) 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 seventy-six cents ( $ 8 .76) per foot of primary circuit; -4- b. For three-phase service, a charge of nineteen eighteen dollars and forty-three cents ( 0 $ 18 .43 ) per foot of primary circuit. (2) The transformer installation charge shall be as follows : a. For single-phase service, a charge of one thousand three hundred seventeen eighteen dollars ($ 1 ,3 f 7 . $ 1 ,318 .) per transformer; b. For three-phase service, a charge of two thousand four hundred nine- twenty-one dollars ($2,409 . $2 ,421 .) per transformer. (3 ) Actual special costs to the utility of installation of service resulting from site conditions shall be included in the BSC as additional charges . Such conditions may include, but are not limited to, frozen or rocky soil, concrete cutting and asphalt replacement. Section 3 . That the amendments to Chapter 26 of the City Code contained herein shall go into effect for all invoices paid on or after January 1 , 2011 . Introduced, considered favorably on first reading, and ordered published this 2nd day of November, A.D . 2010, and to be presented for final passage on the 16th day of November, A.D . 2010 , Mayor ATTEST : City Clerk -5 - Passed and adopted on final reading on the l6th day of November, A.D . 2010 . Mayor ATTEST : City Clerk -6-