HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 10/15/2002 - ITEMS RELATING TO UTILITY RATES FOR 2003 AGENDA ITEM SUMMARY ITEM NUMBER: 24A-C
FORT COLLINS CITY COUNCIL DATE: October 15, 2002
STAFF: Michael B. Smith
Wendy Williams
SUBJECT:
Items Relating to Utility Rates for 2003.
RECOMMENDATION:
Staff recommends adoption of Option B of the Water Rate Ordinance on First Reading. Staff
recommends adoption of the Wastewater and Stormwater Rate Ordinances on First Reading.
FINANCIAL IMPACT:
The Water Rate Ordinances are projected to increase annual Water Fund operating revenues by
approximately 6% assuming the respective projected effects on consumption. Wastewater Fund
operating revenues are projected to increase by 2%and Storm Drainage Fund operating revenues are
projected to increase 10%.
EXECUTIVE SUMMARY:
A. First Reading of Ordinance No. 155, 2002,Amending Chapter 26,Article III, Division 4 of
the Code of the City of Fort Collins Relating to User Rates and Charges for Water(Options
A and B).
B. First Reading of Ordinance No. 156,2002, Amending Chapter 26 Article VII,Division 4 of
the Code of the City Relating to Wastewater Fees.
C. First Reading of Ordinance No. 157, 2002, Amending Chapter 26, Article VII, Division 2
of the City Code Relating to Stormwater Fees.
Water Rates
The proposed water rate structures vary by customer class but are all designed to encourage
conservation. The customer impacts vary within each customer category based on relative levels of
water usage. In general, customers with low use will see modest increases (or in some cases
Igo reductions) in their total water bills while the larger users in each customer class will experience a
bigger percentage increase. Customer conservation efforts will help to moderate the rate impacts
at all levels of use.
DATE: October 15, 2002 2 ITEM NUMBER: 24 A-C
Two options are proposed for the water rate ordinance. The two options presented are identical for
single-family,duplex and multi-family residential rates. The options differ only in the commercial
rate classes.
Option A is based on the direction received from City Council at the September 10, 2002, study
session. Option A water rates are designed based on the assumption that 2003 water use will
decrease 15%system wide for all customer classes. If consumption drops to the projected level,the
proposed rates will provide a 6%increase in water fund revenues. Option A includes increasing step
rates for single-family, duplex and commercial customers.
Option B is identical to Option A with one change in assumption. The rates proposed in Option B
are based on a 15% reduction in residential water use but a 10% reduction by the commercial rate
classes. Staff does not view it as realistic to expect a 15% reduction in water use by commercial
customers since their seasonal outdoor use is a smaller.proportion of their total use than the outdoor
use of the residential rate classes. It is estimated that about 46% of the residential water use is for
outdoor uses versus the 34% seasonal use pattern found for commercial customers. It should also
be noted that the 34% seasonal shift in the commercial class may not all be due to outdoor use, the
seasonal shift may also be caused by seasonal shifts in business activities. As with Option A,Option
B provides for increasing step rates for all single-family,duplex and commercial customers. Option
B is designed to provide a 6% increase in water fund revenues if water usage is reduced to the
projected levels (15% for residential and 10% for commercial).
It is difficult to predict customers'response to the Utilities'conservation campaign that combines the
new stepped rate forms,education and water restrictions. If reduction in usage is less than targeted
in either of the options,revenues will increase more than the 6%required. If reduction is more than
either target, there will be a short fall of revenues in the Water Fund. In either case, mid-year rate
changes may be necessary in 2003,regardless of which of the ordinance options Council may choose
to adopt.
The construction rate and miscellaneous fees and charges for hydrant water rental and service
charges have also been updated to reflect current costs. All proposed changes will become effective
on'billings issued on or after January 1,'2003.
Wastewater Rates
As proposed in the 2002-2003 budget, the ordinance increases the City's wastewater rates by 2%.
The increase is needed to fund the operations and maintenance of the City's wastewater system and
to finance capital improvements. It is being applied "across the board" for all customers. A typical
single-family residential customer's monthly bill will increase from$16.29 to$16.61 or 32 cents per
month. This is based on a system average 5,456 gallons per month winter quarter water
consumption. The wastewater rate ordinance also adopts several housekeeping changes to
standardize verbiage regarding base monthly charges and to delete references to obsolete"Category
I" customers. The proposed changes will become effective on billings issued on or after January 1,
2003. The Water Board recommended approval of the 2002-2003 wastewater rate plan during its
review of the 2002-2003 budget in the fall of 2001.
DATE: October 15, 2002 3 ITEM NUMBER: 24 A-C
Stormwater Rates
If adopted by City Council, the City's stormwater rates will increase 10% "across the board" for all
customers. The 10%increase is consistent with both the 2002-2003 budget and the 2001 Stormwater
Financing Plan adopted by City Council Resolution 2001-93. The increase is necessary to fund the
operations and maintenance of the City's stormwater system,to pay debt service and to accelerate
the citywide capital improvements program. A typical single-family residential customer's monthly
bill will increase from $1 1.79 to $12.96 or$l.l7 per month. The typical bill is based on an 8600
square foot lot with light run off. The proposed increase is to be effective on billings issued on or
after January 1, 2003. The Water Board approved the 2002-2003 stormwater rate plan during its
review of the 2002-2003 budget in the fall of 2001.
Electric Rates
No changes are proposed to the electric rates for 2003.
Impact on Average Residential Customer
The table below summarizes the impact of the proposed rate adjustments on a typical single-family
residential customer's monthly utility bill. The table shows rate impacts on median customers who
both meet and fail to meet the targeted 15% reduction in water use. In contrast to the 2% and 10%
across the board increases for all wastewater and stormwater customers, water customers who use
more water than the median customer specified in this table will experience a larger percentage
increase than the median. Likewise, water customers who use less water than the median customer
will experience a smaller percentage increase(or in some cases even a reduction)in their water bills.
Typical Residential Customer 2002 i
15% Reduction in Water Use
Rates
Proposed $
2003 Increase Increase
Water(Option A or B)
(50th percentile 117,131 gal/yr) $29.13 $29.23 $0.10 0.3%
Wastewater
(5456.gal.lmo WQC) _ _. . $1b.29, $16,61. . $0.32. 2.0%
Electric
(700 kWh per month) $43.34 $43.34 $0.001 0.0%
Stormwater
(8,600 sq.ft.lot,light runoff) $11.79 :^;_ $12.96 $1.17 10.0%
Total Monthly Utility Bill $100.55 $102.14 $1.59 1.58%
Note:Water,Wastewater and Electric calculations include 6%payment in lieu of taxes.
DATE: October 15, 2002 4 ITEM NUMBER: 24 A-C
BACKGROUND- Water Rates
Single-family Residential Customers
The proposed single-family residential rates are identical in both Option A and Option B. A five-
step increasing block rate is proposed for the single-family residential customers. It is projected that
the increasing block rate will encourage conservation by sending a strong price signal to the
customer to reduce water use. The proposed rate lowers the fixed monthly charge and increases the
variable volume charge. Because of the shift in costs from the fixed fees to the increasing volume
charges, most of the rate impact will be experienced in the summer months and customers will see
little increase in the winter months. The following table summarizes the changes and the projected
impacts on revenue.
Single-family Gallons per Month Mo. Charge* % Increase above
Step 1
Current Rate
Fixed Charge per Month $14.69
Charge per 1000 Gallons (all gal. used) $1.31
Proposed Rate
Fixed Charge per Month $12.00
Step Charge per 1000 Gallons:
1 0-7,000 $1.68
2 7,001-13,000 $2.24 33%
3 13,001-20,000 $2.80 67%
4 20,001-33,000 $3.36 100%
5 Above 33,000 $4.20 150%
* 6% Payment in lieu of taxes is added to the water rates per City Code 26-118 (c).
6%Increased revenue with 15% reduction.
26.8 %Increased revenue with no reduction.
The annual impacts on single-family residential customers vary based on water use and are
summarized in the table below. The table shows rate impacts for customers at the 25th, 50th and
75th percentile of use for customers who both meet and fail to meet the targeted 15% reduction in
water use. For computation purposes it is assumed that the reduction of 15% is obtained during the
six summer watering months (billings from May through October).
DATE: October 15, 2002 5 ITEM NUMBER: 24 A-C
15% Reduction in Use
Single Annual Annual Gallons Annual $ %
Family Customer Gallons Cost with 15% Cost Change Change
(Percentile) 2002 Proposed,.; , ' Reduction Proposed
Water 2003Rate ' in Use 2003 Rate
Rate
25'" 70,952 $285.38 60,309 $263.50 ($21.88) -7.70/,
50'" 1117,131 $349.52 99,561 $350.74 $1.22 0.3%
75'" 1172,294 $426.09 146,441 $473.45 $47.36 11.1%
Note: Calculations include 6% payment in lieu of taxes.
Duplex Customers
The proposed water rates for duplexes are the same in both Option A and Option B. The duplex rate
has five steps. The charges for each step are the same as for the proposed single-family residential
rate with the exception that the first step is for all gallons used between zero and 9,000 gallons. This
level of usage represents the same proportion of customer billings in the duplex rate class as zero
to 7,000 gallons is for the Single-family Residential class.
Duplex Gallons per Month Mo. Charge* % Increase above
Step 1
Current Rate
Fixed Charge per Month $17.32
Charge per 1000 Gallons (all gal. used) $1.31
Proposed Rate
Fixed Charge per Month $14.63
Step Charge per 1000 Gallons:
1 0-9,000 $1.68
2 9,001-13,000 $2.24 33%
3 13,001-20,000 $2.80 67%
4 20,001-33,000 $3.36 100%
5 Above 33,000 $4.20 150%
* 6% Payment in lieu of taxes is added to the water rates per City Code 26-118(c).
5.6 % Increased revenue with 15% reduction.
26.9 % Increased revenue with no reduction.
Flat Rate Customers
The flat rate for residential customers (single-family and duplex) will be increased 6% in both
-Option A and-Optiorr ,There-are approximately-2000residential-flahrate customers reruaining on
the system and it is anticipated that the vast majority of these will be converted to meters before the
2003 lawn watering season.
Multi-family Residential Customers
The proposed rate for multi-family customers also reduces the fixed monthly charge and increases
the volume charge per 1000 gallons. The volume charge is set at the same level as the first step of
the single-family and duplex rates but increased for an assumed reduction in usage of 15%to offset
DATE: October 15, 2002 6 ITEM NUMBER: 24 A-C
the expected loss of revenue. This differs from using the increasing block charges as with the single-
family and duplex rates to offset the expected revenue losses. As with the other residential rates,the
multi-family rate in Option A is identical to that in Option B. The proposed multi-family rate
follows:
Multi-family Current 2002 Rate* Proposed 2003 Rate*
Base Charge per account $14.69 $12.00
Base Charge per additional dwelling unit $ 5.06 $ 4.00
Charge per 1000 gaflons $ 1.310 $ 1.98
* 6% Payment in lieu of taxes is added to the water rates per City Code 26-118(c).
6% Increased revenue with 15% reduction.
18.2 % Increased revenue with no reduction.
An increasing block rate is not recommended for the multi-family rate class based on the variables
of numbers of units billed per account and the variety of meter sizes used by these customers. The
irrigation patterns of multi-family customers are also unclear because some premises have separate
commercial irrigation taps while others customers irrigate using the building's water service. A
future way to address the irrigation component of multi-family use would be to set step thresholds
at levels based upon each individual customer's account history similar to the way winter quarter
consumption is used for wastewater rates. This approach requires additional analysis and is
dependent upon reprogramming the customer information system program to perform this option.
Commercial Customers
Two alternatives are presented for the commercial rates. Both Option A and Option B incorporate
the stepped rate structure as requested by several Council members during the September 10, 2002,
study session. The difference between Option A and Option B is related to the projected reductions
in use that can be achieved by the commercial rate class.
The Ordinance presented as Option A contains water rates designed based on the assumption that
commercial customers will decrease usage-1-5110 in 2003. If-consumption drops to the projected
level,the proposed Option A rates will provide a 6%increase in water fund revenues.If no reduction
in use is achieved the rates will generate a revenue increase of approximately 21%. Because of the
stepped rates, the higher users in each meter size will bear the largest share of the increased cost.
The Ordinance presented as Option B contains water rates designed based on the projection that
commercial customers will decrease usage 10% in 2003. If consumption drops to the projected
level, the proposed Option B rates will provide a 6% increase in water fund revenues. If no
reduction in use is achieved the rates will generate a revenue increase of approximately 16%.
Through the stepped rates, the higher users in each meter size will bear the larger shares of the
increased cost.
Staff recommends Option B. Staff does not view it as realistic to expect a 15% reduction in water
use by commercial customers since their seasonal outdoor use is a smaller proportion of the total
commercial water use than for the residential rate classes. Staff estimates that about 46% of the
residential water use is outdoors versus the 34% seasonal use pattern found for commercial
customers. It should also be noted that the 34% seasonal shift in the commercial class may not all
be for outdoor use, it may also include seasonal shifts in business activities. An expectation of a
DATE: October 15, 2002 7 ITEM NUMBER: 24 A-C
10%reduction may still provide challenges for many businesses but it is viewed as a more obtainable
target.
Both Option A and -provide fora three-step commercial rate structure that varies for each meter
size.The stepped rate structure was requested by several Council members during the September 10.
2002, study session. A stepped rate places the highest financial burdens on the larger users in each
meter size. These may or may not be customers who are using water inefficiently. Staff had
originally presented a commercial rate proposal structured much like the multi-family rate structure
with lowered fixed charges and a higher,but flat,volume charge. A flat rate would result in a more
even distribution of the cost burden to all commercial customers while still providing financial
incentives to conserve.
Commercial customers present a challenging mix of uses for rate design. Some customers use water
for nothing but irrigation,some accounts have no irrigation using all the water for business purposes
and others are a mix of the two. 'It makes it difficult to target the rates for reduction of discretionary
use while not placing undue financial burdens on those customers who may already make efficient
use of water in their businesses. Two types of commercial customers will be most impacted by the
stepped rates as now included in the proposed Ordinances. First are customers whose use varies
seasonally,presumably because of discretionary irrigation. These customers use water in the highest
blocks for a few months during the year. In this case, the higher steps provide incentive to reduce
usage and the customer will be able to respond to the price signal similar to a residential customer.
The other group of commercial customers who will be most impacted by the stepped rate are
customers with consistently high usage each month of the year due to the water used in their business
processes. Although these customers may be able to implement some conservation measures, they
may have considerably less discretionary use and would be less able to reduce usage in response to
the increasing price signal.
As recommended for multi-family customers, a future way to address the irrigation component of
commercial use would be to set step thresholds at levels based upon each individual customer's
account history similar to the way winter quarter consumption is used for wastewater rates. This
approach requires significant further analysis and depends upon reprogramming the customer
information system programto perform this option.
The following table displays the proposed three-step commercial rate changes by meter size. The
change in each subclass'fixed base charge is unique to that meter size based on guidelines from the
last cost-of-service study. Although the thresholds for each step are unique by meter size, the cost
per gallon for each step is consistent across the meter sizes.
DATE: October 15, 2002 8 ITEM NUMBER: 24 A-C
Commercial Rate by Meter 2002 Rate* Proposed 2003 Rate*
Size
Gallons per Monthly Gallons per Option A rt % Inc.
Month Charge Month Monthly Above
Charge Step 1
3/4" Meter:
Base Fixed Charge per Month $12.97 $10.64
Step 1 -$ per 1000 Gal. 0-100,000 $1.310 0-10,000 $1.476
Step 2-$ per 1000 Gal. Above 100,000 $1.883 10,001- $1.845 25%
20,000
Step 3 -$per 1000 Gal. Above $2.214 50%
20,000
Increased revenue with targeted reduction 5.7%
Increased revenue with no reduction 21.4%
1" Meter:
Base Fixed Charge per Month $36.21 $29.69
Step 1 -$per 1000 Gal. 0-300,000 $1.310 0-30,000 $1.476
Step 2- $per 1000 Gal. Above 300,000 $1.883 30,001- $1.845 t 25%
90,000
Step 3 - $per 1000 Gal. Above $2.214 5G
90,000
Increased revenue with targeted reduction 6.0%
Increased revenue with no reduction 22.3%
1-1/2" Meter:
Base Fixed Charge per Month $80.54 $80.73
Step 1 -$per 1000 Gal. 0-625,000 $1.310 0-120,000 $1.476
Step 2 -$per 1000 Gal. Above 625,000 $1.883 120,001- $1_845 25%
220,000
Step 3 -$per 1000 Gal. Above $2.214 50%
220,000
Increased revenue with targeted reduction 7.0%
Increased revenue with no reduction 22.3%
2" Meter:
Base Fixed Charge per Month $143.04 $121.66
Step 1 -$per 1000 Gal. 0-1,200,000 $1.310 0-120,000 $1.476
Step 2 -$per 1000 Gal. Above $1.883 120,001- $1.845 25%
1,200,000 220,000
Step 3 - $per 1000 Gal. Above $2.214 50%
220,000
Increased revenue with targeted reduction 5.9%
Increased revenue with no reduction 21.2%
DATE: October 15, 2002 9 ITEM NUMBER: 24 A-C
Commercial Rate by Meter 2002 Rate* Proposed 2003 Rate*
Size
- Gallons per Monthly -Gallons per - -Option A : , . % Inc.
Month Charge Month Monthly Mo, ly '< Above
Charge Charge Step I
3" Meter:
Base Fixed Charge per Month $181.78 $185.57
Step 1 - $per 1000 Gal. 0-1,400,000 $1.310 0-350,000 $1.476
Step 2-$per 1000 Gal. Above $1.883 350,001- $1.845 25%
1,400,000 700,000
Step 3 -$per 1000 Gal. Above $2.214 50%
700,000
Increased revenue with targeted reduction 6.3%
Increased revenue with no reduction 22.6%
4" Meter:
Base Fixed Charge per Month $304.87 $291.66
Step 1 -$ per 1000 Gal. 0-2,500,000 $1.310 0-400,000 $1.476
Step 2-$ per 1000 Gal. Above $1.883 400,001- $1.845 25%
2,500,000 900,000
Step 3 - $per 1000 Gal. Above $2.214 50%
900,000
Increased revenue with targeted reduction 6.6%
Increased revenue with no reduction 23.0%
6" Meter:
Base Fixed Charge per Month $809.95 $565.11
Step 1 - $per 1000 Gal. All Gallons $1.310 0-3,000,000 $1.476
Step 2-$ per 1000 Gal. 3,000,001- $1.845 25%
15,000,000
Step 3 -$per 1000 Gal. Above $2.214 50%
15,000,000
Increased revenue with targeted reduction 6.6%
Increased revenue with no reduction 28.1%
DATE: October 15, 2002 10 ITEM NUMBER: 24 A-C
Commercial Rate by Meter 2002 Rate* Proposed 2003 Rate*
Size
`Gallons per Monthly' "'Gallons per ' Option A % Inc.
Month Charge Month Monthly Above
Charge Step 1
8" Meter:
Base Fixed Charge per $1221.54 $998.32
Month
Step 1 -$per 1000 Gal. All Gallons $1.310 0-3,000,000 $1.476
Step 2-$per 1000 Gal. 3,000,001- $1.845 25%
15,000,000
Step 3 -$per 1000 Gal. Above $2.214 50%
15,000,000
Increased revenue with targeted reduction 2.27%
Increased revenue with no reduction 19.87%
* 6% Payment in lieu of taxes is added to the water rates per City Code 26-118 (c).
Board Recommendations
The Water Board and Natural Resources Advisory Board reviewed the water rate proposals prior to
changes made after the September loth study session.The rate design that was reviewed by the Boards
targeted a 10% reduction in use. Further, at that time, tiered rates were proposed only for the single-
family and duplex rate classes not commercial customers. Both Boards endorsed implementation of
water conservation rates. Neither Board has reviewed the proposals now before Council that include
the two options with higher targeted reductions and stepped rates for the commercial customer classes.
As reflected in the attached minutes, Water Board members had concerns that the "drought" rate
structures should not be permanent and that rates should be reviewed annually in order to adjust the
rates for..normal conditions.once the.drought period.had-passed. The motion adopted by.the Board
included these concerns. The Board's motion read: "The Water Board recommends approval of the
proposed water conservation rates and that the rates be evaluated on an annual basis, and when the
extreme conditions are over the steps in the rate structure be adjusted to reflect that."
The Natural Resources Advisory Board expressed concerns about the 10% targeted reduction and the
non-tiered commercial rate proposal that was presented.
Copies of the minutes from the Water Board and a letter from the NRAB are attached.
• ORDINANCE NO. 135, 2002 OPTION A
OF THE COUNCIL OF THE CITY OF FORT COLLINS
AMENDING CHAPTER 26, ARTICLE III, DIVISION 4
OF THE CODE OF THE CITY OF FORT COLLINS
RELATING TO USER RATES AND CHARGES FOR WATER
WHEREAS, the City Council is empowered and directed by Article XII, Section 6 of the
Charter of the City of Fort Collins, Colorado, to by ordinance from time to time fix, establish,
maintain and provide for the collection of such rates, fees, or charges for water 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 user rates or adjustments to be in effect for the following year;
and
WHEREAS, Section 26-118 further provides that user rates may include a conservation
gallonage charge or other rate component that creates an economic incentive to conserve water; and
. WHEREAS, pursuant to Section 26-118 of the Code of the City of Fort Collins the City
Manager has submitted a recommendation to the City Council regarding the water user rates to be
imposed for the billing year beginning January 1, 2003.
NOW THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT
COLLINS as follows:
Section 1. That Subsection (b)(2) of Section 26-118 of the Code of the City of Fort
Collins is hereby amended to read as follows:
Sec. 26.118. Determination of user rates.
(b) . . .
(2) Metered water use. Charges for metered water service consist of a
monthly service'`` " harge, which varies with the number of dwelling
units for residential customers and the size of the meter for nonresidential
customers,and a quantity char ed er thousand gallons of water use.
REENEWor those customers served by more than one meter, the
appropriate scryie&1',W charge shall be applied to each meter. Monthly
servicefiWWharges shall be billed to each meter in use regardless of
whether any quantity charge is made.
Section 2. That Section 26-126 of the Code of the City of Fort Collins is hereby
amended-to-read as follows:
Sec. 26-126. Schedule A,flat rates for unmetered water use.
&4'(4� When the use of city water is not metered, the monthly
rate to be charged for each flat rate water service shall be the sum of the total charge
for the dwelling units (A) plus the lot charge (B):
A = For a building containing only one (1) dwelling unit: Twenty=six-doll=
"1?41!e11. w Pe- *`Q r000
( ); for a building containing only two (2) dwelling units: Thirty-
sever, dvliwa and t%venty seven cc its ($37.27�
B = For each lot: Add to the dwelling unit charge sixteen and six tenths eentS
($6.166) er one hundred(100)
square feet of lot area if the building includes one (1) dwelling unit. If the
building includes two (2) dwelling units, add to the dwelling unit charge
foutteen and seven-tenths cents (50.147) fiftean and six-tenths cents
per one hundred (100) square feet of lot area.
Section 3. That Subsections(a)and (b)of Section 26-127 of the Code of the City of Fort
Collins are repealed in their entirety and reenacted to read as follows:
'"Sec.26427. ' "Schedule 13, meter rates.
s..
t
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dflt "`�l�tiIts shall p�� a",monthl��water quantity charge of one
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ter shall
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abase monthly charge of five hundred sixty=five dollars and eleven
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:tett 4etts
Section 4. That Subsection(c)of Section 26-127 of the Code of the City of Fort Collins
is hereby amended to read as follows:
(c) Colorado State University. In addition to the charges described in
_Subsections,(a),and(b) of this Section, Colorado.State.Universityshall also pay.a
monthly meter fee of one thousand one hundred ten dollars ($1,110.) representing
the city's costs associated with providing metered water connections to the
University's foothills campus. This provision shall expire July 11 2006.
Section 5. That Subsections(a)and (b)of Section 26-129 of the Code of the City of Fort
Collins are hereby amended to read as follows:
Sec.26-129. Schedule D,miscellaneous fees and charges.
(a) Service charges shall be as follows:
(1) For processing a request for water service
during normal business hours
(3,2) All after hours service calls 26.89$46W
(b) The fire hydrant fees and charges shall be as follows:
(1) For installation of meter
(2) For removal of meter +0-.0& 8O
(3) For daily rental for meter and fittings �
.-{4) For water•service-insieFetktccilp,
rate per one thousand(1,000)
gallons water used
(5) A deposit may be required in the amount of the charges for the anticipated
water usage and rental.
Section 6. That the amendments to Chapter 26 of the City Code contained herein shall
go into effect with respect to all city utility bills issued on or after January 1, 2003.
Introduced and considered favorably on first reading, and ordered published this 15th day
of October, A.D. 2002, and to be presented for final passage on the 5th day of November, A.D.
2002.
Mayor
ATTEST:
City Clerk
Passed and adopted on final reading this 5th day of November, A.D. 2002.
Mayor
ATTEST:
City Clerk
•
ORDINANCE NO. 155, 2002 OPTION B
OF THE COUNCIL OF THE CITY OF FORT COLLINS
AMENDING CHAPTER 26, ARTICLE III, DIVISION 4
OF THE CODE OF THE CITY OF FORT COLLINS
RELATING TO USER RATES AND CHARGES FOR WATER
WHEREAS, the City Council is empowered and directed by Article XII, Section 6 of the
Charter of the City of Fort Collins, Colorado, to by ordinance from time to time fix, establish,
maintain and provide for the collection of such rates, fees, or charges for water 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 user rates or adjustments to be in effect for the following year;
and
WHEREAS, Section 26-118 further provides that user rates may include a conservation
gallonage charge or other rate component that creates an economic incentive to conserve water; and
• WHEREAS, pursuant to Section 26-118 of the Code of the City of Fort Collins the City
Manager has submitted a recommendation to the City Council regarding the water user rates to be
imposed for the billing year beginning January 1, 2003.
NOW, THEREFORE,BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT
COLLINS as follows:
Section 1. That Subsection (b)(2) of Section 26-118 of the Code of the City of Fort
Collins is hereby amended to read as follows:
See. 26.11E. Determination of user rates.
(b) . . .
(2) Metered water use. Charges for metered water service consist of a
monthly service :� �"charge, which varies with the number of dwelling
units for residential customers and the size of the for nonresidential
customers, and a quantity char ed r thousand gallons of water use.
.or those customers served by..more than one meter,
the appropriate service IM charge shall be applied to each meter.
Monthly service in charges shall be billed to each meter in use
regardless of whether any quantity charge is made.
Section 2. That Section 26-126 of the Code of the City of Fort Collins is hereby
amended to read as follows:
Sec. 26-126. Schedule A, flat rates for unmetered water use.
hen the use of city water is not metered, the monthly
rate to be charged for each flat rate water service shall be the sum of the total charge
for the dwelling units (A) plus the lot charge (B):
A = For a building containing only one(1) �W dwelltn unit:-aettty-snrdellars
e: i
cCkts ; for a building containing only two (2) dwelling units:
t:
B = For each lot: Add to the dwelling unit charge sixteen and six
er one hundred(100)
square feet of lot area if the building includes one(1)dwelling unit.If the
building includes two(2)dwelling units, add to the dwelling unit charge
.E daeuts
per one hundred(100) square feet of lot area.
Section 3. That Subsections(a)and (b)of Section 26-127 of the Code of the City of Fort
Collins are repealed in their entirety and reenacted as follows:
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Section 4. That Subsection(c)of Section 26-127 of the Code of the City of Fort Collins
is hereby amended to read as follows:
(c) Colorado State University. In addition to the charges described in
Subsections (a) and (b) of this Section, Colorado State University shall also pay a
monthly meter fee of one thousand one hundred ten dollars ($1,110.) representing
the city's costs associated with providing metered water connections to the
University's foothills campus. T
Section 5. That Subsections(a)and (b)of Section 26-129 of the Code of the City of Fort
Collins are hereby amended to read as follows:
Sec. 26-129. Schedule D, miscellaneous fees and charges.
(a) Service charges shall be as follows:
(1) For processing a request for water service
during normal business hours $i5 69' QpO
(3' All after hours service calls 29: O f
(b) The fire hydrant fees and charges shall be as follows:
(1) For installation of meter
(2) For removal of meter i9 99 4Q
(3) For daily rental for meter and fittings 9 5@ # 6(
(4) For water service inside the ciry,
rate per one thousand(1,000)
gallons water used
(5) A deposit may be required in the amount of the charges for the
anticipated water usage and rental.
Section 6. That the amendments to Chapter 26 of the City Code contained herein shall
go into effect with respect to all city utility bills issued on or after January 1, 2003.
Introduced and considered favorably on first reading, and ordered published this 15th day
of October, A.D. 2002, and to be presented for final passage on the 5th day of November, A.D.
2002.
Mayor
ATTEST:
City Clerk
Passed and adopted on final reading this 5th day of November, A.D. 2002.
Mayor
ATTEST:
City Clerk
ORDINANCE NO. 156, 2002
OF THE COUNCIL OF THE CITY OF FORT COLLINS
AMENDING CHAPTER_26, ARTICLE VII,DIVISION 4
OF THE CODE OF THE CITY OF FORT COLLINS
RELATING TO WASTEWATER FEES
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
such utility, as set forth therein; and
WHEREAS,Section 26-277 of the Code of the City Fort Collins requires that the City
Manager analyze the operating and financial records of the wastewater utility during each calendar
year and recommend to the City Council user rates or adjustments to be in effect for the following
year; and
WHEREAS, Section 26-277 further provides that user rates shall be revised as necessary to
assure equity of the rate system established and to assure that sufficient funds are obtained to
adequately operate and maintain the wastewater system; and
• WHEREAS, the City Manager has recommended to the City Council that the following
wastewater user rates be imposed for the billing year beginning January 1, 2003.
NOW, THEREFORE,BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT
COLLINS as follows:
Section 1. That Subsection(c)of Section 26-279 of the Code of the City of Fort Collins
be amended to read as follows:
Sec. 26-279. Service charges; categories.
(c) The rate determination by category is as follows:
(I) The rate for categories A and B shall be a fiat rate representative of the
actual cost of serving a typical user in each of these categories.
(2) The rate for category C shall be based on winter quarter water use in
accordance with the following formula:
Cu=VuC
Where:
Cu= Users charge per billing period.
Vu = Volume of winter quarter water use.
C = A charge per unit volume of water used based upon the cost of
service per unit volume of normal, domestic-strength wastewater.
The user shall be charged the greater of this calculated amount or the
applicable-min t-,O charge as set forth in § 26-280. If any metered
water service customer connects to the wastewater utility or makes a change
in the use of the premises or substantially expands such premises, the
Director shaltmake an estimate-of the water consumption on-such-premises
during an average winter month based upon a count of plumbing fixtures,
consumption of similar customers or other information relevant to such
determination and such estimate when made shall be the basis for the
wastewater service charge until the actual winter use for the premises can be
determined.
(3) The rate for category D shall be based upon the user's consumption of water
in accordance with the following formula:
Cu=VuC
Where:
Cu = Users charge per billing period.
Vu = Volume of water used per billing period.
C= A charge per unit volume of water used based upon the cost of
service per unit volume of normal, domestic-strength wastewater.
Users in category D are subject to a niininnnnn monthly charge based on
the size of the water meter.
(4) The users in categories D, E and F shall be billed upon the basis of metered
water consumption except where they can show to the satisfaction of the
Director that not all of the water going through the water meter is returned to the
wastewater system but is instead consumed in the process or otherwise diverted.
_... Insuctrcmes;arch-withtheapproval of the Direetor;the-wastewater charm may
be based upon one(1)of the following methods: (a)a metering device of a type
and installed in a manner approved by the Director may be used to measure the
quantity of wastewater returned to the public sewer and the actual volume of
wastewater discharged will be substituted in the formula for billing purposes;
or (b) when the user discharges only wastes reasonably and regularly
corresponding to winter quarter water use,said winter quarter water use may be
substituted in the formula for billing purposes. Any metering device used to
measure wastewater shall be installed and maintained at the user's expense.
(5) The rate for users in category G shall be as set forth in § 26-280.
(6) The rate for users in category H shall be determined by negotiation with the
party concerned.However,the rate shall be based upon cost of service and shall
not be less than that of in-city users and shall include any wastewater strength
surcharges.
Section 2. 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 $ I.. ""per month
user(flat rate)
Single-family residential $7.%6 per month plus$1.4679,0 per 1,000
user(metered water use) gallons of winter quarter water use
B _..-Duplex . (.two-family) .$26.44 per month
residential users (flat
rate)
Duplex (two-family) $9-&qM per month plus $1.46TO per
residential users 1,000 gallons of winter quarter water use
(metered water use)
C Multifamily residential $1.46 per 1,000 gallons of winter quarter
user (more than two water use,plus a base charge of $1.168 per
dwelling units including month per dwelling unit served
mobile home parks)and
winter quarter based
nonresidential user
D Minor nonresidential The greater of$1.466 per 1,000 gallons of
user water use, measured sewage flow or winter
quarter water use, whichever is applicable,
plus the following applicable base charge:
Size of
water meter Base
(inches) Charge
3/4 or $ 4.955.05
smaller
1 1HO11.53
11/2 H-%Z136
2 36-3439.10
3
4 +G"9044
6 544-S+ k
8 %"5
E Intermediate $1.46-796 per 1,000 gallons of water use,
.. 'and nonresidential user measured wastewater-flow or winter quarter
F Significant industrial water use, whichever is applicable; plus a
user surcharge of$1.487-3,4 per million gallons for
each milligram per liter of suspended solids
in excess of 250 milligrams per liter; plus a
surcharge of %7lr8+$J,,Q5 per million
gallons for each milligram per liter of BOD
in excess of 200 milligrams per liter or a
surcharge of $0.3-26- 3 per million gallons
for each milligram per liter of COD in excess
of 300 milligrams per liter,or a surcharge of
$2.++41g per million gallons for each
milligram per liter of TOC in excess of 100
milligrams per liter,whichever is applicable.
The user shall either pay this calculated
amount plus the applicable base charge set
forth below:
Size of
water meter Base
.(inches) Charge
3/4 or $ +950
smaller
1
11/2
2 38333E1
3 63 9 k6 h38
4 i96:931Q9;11
6 5 4 5k
8
G User outside city limits: The rate for users outside the city limits shall
be the game as'for like service inside-the city
limits as is specified in categories A-F and H
in this Section.
H Special with agreement The rate shall be negotiated
Section3. _ That Subsection.(a)of Section26-281 of the Code of.the City of Fort Collins
is hereby amended to read as follows:
Sec. 26-281. Wastewater strength or industrial surcharge; categories.
(a) Industrial and intermediate nonresidential users in categories E,F,G H
mid I shall also be subject to a monthly surcharge for excessive strength of BOD,
COD,TOC and TSS in their discharged wastewater in addition to the base monthly
service rate per volume of water consumed or volume of wastewater discharged.The
surcharge rates shall be based on the extra costs incurred by the city in surveillance,
sampling and testing of the discharges, for additional operating and maintenance
expenses and forany other action required to identify;handle;process or supplement
normal activities due to the excessive strength, plus overhead charges, and once
established the rates shall be set forth in 26-282.
Section 4. That Subsection(a)of Section 26-282 of the Code of the City of Fort Collins
is hereby amended to read as follows:
Sec. 26-282. Wastewater strength or industrial surcharges and categories
established.
. (a) The schedule of wastewater strength surcharge for customers located either
inside or outside the city limits shall be as follows:
Excess over Rate per
Parameter (mg/1) 1,000gallons
BOD 200 $86ffH+Q ,'
COD 300 6:6Offm, ,.
TOC 100 a e
TSS 250 8:6844641 ;°
Section 5. That Subsections (a), (b) and(d) of Section 26-284 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(not including surcharges)for
users who are not subject to a monthly surcharge as set forth in § 26-281 of this
Article,or who are not expected to generate greater than the average daily flow in the
month of maximum discharge for the applicable category, is as follows:
Category SPIF
A $1,030.
• B and C $830 for each dwelling unit or mobile home space
Water
meter size
Category (inches) Fee
D,E,F 3/4 $2,500.
l 6,500.
1 h 12,900.
2 18,900.
3 39,600.
4 and above Calculated based on
estimated average
wastewater flow
G Same as equivalent category,plus any special sanitation district fees.
H and Determined pursuant to paragraph(d)of this Section.
(b) Industrial and intermediate nonresidential users in categories E,F,G,and H
wid-Fwhich are subject to a monthly surcharge as set forth in§ 26-281 of this Article
shall also be subject to a plant investment fee surcharge for any average
concentrations of BOD and/or TSS in their discharged wastewater which exceed
those average concentrations set forth in § 26-282(b) under Category E-34.
(d) The amount of the plant investment fee and surcharge for each nonresidential
surcharged user, users in categories H wt&I and those users who are expected to
generate greater than the average daily flow in the month of maximum discharge for
the applicable category, shall be calculated utilizing the following formula:
Introduced and considered favorably on first reading,and ordered published this 15th day of
October, A.D:,2002;anrtto be presentedforfinal-passage on the 5th day-of November,AD. 2002.
Mayor
ATTEST:
City Clerk
Passed and adopted on final reading this 5th day of November, A.D. 2002.
Mayor
ATTEST:
City Clerk
• ORDINANCE NO. 157, 2002
OF THE COUNCIL OF THE CITY OF FORT COLLINS
AMENDING CHAPTER 26, ARTICLE VII, DIVISION 2
OF THE CODE OF THE CITY OF FORT COLLINS
RELATING TO STORMWATER FEES
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 such utility, as set forth therein; and
WHEREAS, Section 26-511(a) of the Code of the City of Fort Collins, requires that the
City Manager analyze the operating and financial records of the stormwater utility during each
calendar year and recommend to the City Council the stormwater utility fees to be in effect for
the following year; and
WHEREAS, Section 26-514 of the Code provides that the Director of the stormwater
utility shall determine the stormwater utility fee rate that shall apply to each specific lot or parcel
of land based on the runoff coefficient, rate factor, base rate and square footage, as set forth in
that Section; and
. WHEREAS, the City Manager has recommended to the City Council that the following
adjustment to the base rate for the stormwater utility fee for the billing year beginning January 1,
2003.
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF
FORT COLLINS as follows:
Section 1. That Paragraph (3) of Section 26-514 of the Code of the City of Fort
Collins is hereby amended to read as follows:
See. 26-514. Determination of stormwater utility fee.
(3) The base rate for the stormwater utility fee shall be $8.0634259
now per square foot per month for all areas of the city.
Section 2. That the amendments to Chapter 26 of the City Code contained herein
shall go into-effect with respect.to.all.City.utility.bills issued on ocafter January 1, 2003.
Introduced, considered favorably on first reading, and ordered published this 15th day of
October, A.D. 2002, and to be presented for final passage on the 5th day of November, A.D.
2002.
Mayor
ATTEST:
City Clerk
Passed and adopted on final reading this 5th day of November, A.D. 2002.
Mayor
ATTEST:
City Clerk
Fort Collins Utilities Water Board Minutes - Excerpt
Thursday, August 22, 2002
City Council Liaison Water Board Chairman Water Board ViceChairman
David Roy Tom Sanders 491-5448 John Morris 491-0185
Staff Liaison Secretary
DeEtta Carr 221-6702 Vicki Mesa
Roll Call
Board Present
Chairman Tom Sanders, Vice Chairman John Morris, Ted Borstad, Tom Brown, Jim Finley, Bill
Fischer, David Lauer, Rami Naddy and Doug Yadon
Board Absent
John Bartholow and Robert Ward
Staff Present
David Agee, Patty Bigner, Dennis Bode, DeEtta Carr, Laurie D'Audney, Kevin Gettig, Jim
Hibbard, Brian Janonis, Vicki Mesa, Michael Smith, Susan Smolnik, Bill Switzer, Ellen
Switzer, and Wendy Williams
Guests
Turf Masters Sod Farm Manager Brian Ridnour and ISIS Representative Laura Sandell
Proposed Water Conservation Rates
Mike Smith stated that City Council was interested in looking at making the rate structure more
of an increasing block rate. He stated that staff will present the proposed rates to Council at the
September 10 Study Session. He commented that Council's goal was to have a block-rate
system implemented by January 1, 2003.
He gave a brief overview of:he proposed water rate structure. He stated that the proposed 2003
water conservation rates were designed to be revenue neutral for 2003 (no windfall or shortfall of
revenue) and include the previously projected 6 percent rate increase for 2003 and the
expectation of a 10 percent reduction in water use.
He gave a PowerPoint presentation and explained the various rates for single-family residential,
duplex-residential, and multi-family rates. He stated Council had requested the residential rate
have a block in it and explained how each of the various block rates were calculated.
Utility Rate Analyst Bill Switzer responded to questions from the Board and reported that rates
were calculated after creating 12-month profiles.
Fort Collins Water Board Minutes Page 2
August 22, 2002
Mike Smith stated the term"revenue neutral" meant that the Utilities is attempting to cover its
costs and not to make a profit. He commented that the Utilities hope is to encourage customers
to change their water use as well as their attitudes on conserving.
Mike Smith stated the commercial block rates would be the most difficult to calculate due to the
many variables. He added that commercial users are important to the viability of the economy.
He also noted it's important not to raise the rates so high they would move out of the community
and to keep it fair. He explained how conservation step charges are calculated. He clarified
there are no contracts with any commercial users that would prohibit implementing the program.
Mike Smith stated they are looking to see if other communities are using the block-rate system
and expressed the need to get the message out.
Boardmember David Lauer asked what percentage of commercial customers would be involved.
Mike Smith stated commercial users are a small percentage, but they are the largest users.
Customer Connections Manager Patty Bigner added that outreach was planned for high water
users and spoke of the various industries which use large amounts of water. (e.g. hotels,
restaurants,health clubs) These groups will be encouraged to look for ways to conserve water in
their operations.
Mike Smith stated the rate structure is proposed for the long term. He stated that members of the
Council feel that if there were a significant decrease in water use, then there would not be a need
to build additional reservoirs. The Board spoke of subsidized growth issues related to the cost of
reservoirs.
Mike Smith stated.it_was.natthe Utili:ties.position to develop,rates.to..change the environment
unless mandated by the community.
Mike reported staff is gathering usage information from other communities to compare and see
where we are with our numbers. Mike stated that the NRAB had requested a presentation so
they could make a recommendation to Council. Mike spoke in support of the concept,but stated
that the issues are: (1)where do you put the rates; and (2) what are you trying to accomplish.
Tom Sanders asked how long after a drought situation would the rates be adjusted back to a
reasonable rate. He stated that he would not support the plan unless there were a stipulation
clearly defining when the 10 percent increase would be lifted at a specific time. He stated this
was a reasonable tool for conservation.
David Lauer expressed concerns about lifting the restrictions.
Boardmember Tom Brown concurred with Tom Sanders, stating that after the drought is over,
the rate structure be adjusted accordingly.
. Fort Collins Water Board Minutes Page 3
August 22, 2002
Mike Smith said we would revisit rates on an annual basis, and when the extreme conditions are
over then the steps in the rate structure would be adjusted.
Boardmember Doug Yadon supported the rate structure, believing it encourages conservation.
The Board discussed the pros and cons of amending the rates when the extreme weather
conditions are over.
Boardmember Ted Borstad made a motion to recommend approval of the proposed water
conservation rates and that the rates be evaluated on an annual basis, and when the extreme
conditions are over the steps in the rate structure be adjusted to reflect that. David Lauer
seconded the motion.
The Board discussed the need for flexibility in the review process.
Boardmember Bill Fisher suggested reviewing the Plan on a annual or semi-annual basis.
Bill Switzer stated the rates are based on an annual basis and commented that semi-annual rates
would be too difficult.
After further discussion, Bill Fisher expressed concerns that a month be chosen to review.
• After further discussion the vote on the motion was as follows: eight approved and Bill Fischer
opposed because he believed a specific month for review should be tied to the motion.
IAike Smith - NRAB Recommendation on Conservation Water Rates Page 1
. From: "Randy Fischer" <karand@frii.com>
To: "Ray Martinez" <ramartinez@ci.fort-collins.co.us>, "Marty Tharp" <mtharp@fcgov.com>,
"Kurt Kastein" <kkastein@ci.fort-collins.co.us>, "Karen Weitkunat"<keitkunat@ci.fort-collins.co.us>,
"Chuck Wanner' ccwanner®poudreraverorg>,"t=&Hamrick <eric_hamrick0hp.com>
Date: 9/9/02 2:59 PM
Subject: NRAB Recommendation on Conservation Water Rates
Dear Mayor Martinez and Council Members:
I am transmitting the NRAB's recommendation on the water utility's proposed conservation water rates.
Please be aware that because of the Board's schedule for hearing this item you will only be receiving a
formal copy of this memo in your read-before packet prior to the September 10 study session. Therefore,
I am also sending the memo as text in this e-mail to provide you with additional time to review our
recommendation before the study session.
Thank you for your attention to our recommendation on this issue.
Sincerely,
Randy Fischer, Chair
NRAB
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DATE: September 8, 2002
TO: Mayor and Council Members
• FROM: Randy Fischer on Behalf of the Natural Resources Advisory Board
SUBJECT: Proposed Conservation Water Rates
At the Natural Resources Advisory Board (NRAB) meeting on September 4, 2002, Mike Smith, Director of
City Utilities presented the water utility's proposal for an incremental, volume-based rate structure know as
conservation water rates. In NRAB action on Mr. Smith's presentation, the Board voted unanimously to
recommend Council adoption of some form of volume-based water rates for residential and commercial
water users served by the City's water utility as part of a fair, market-driven water conservation strategy.
However, the Board recommends that Council reconsider certain policy assumptions on which the utility's
proposed conservation water rates are based, as described in this memorandum.
The NRAB recommends Council adopt fair but effective conservation water Yates.Board members are
unanimous in their support for some form of incremental volume-based water rates as a key element of
the City's water supply policy and overall water conservation strategy.The Board believes the adoption of
the type of rate structure currently proposed by the utility would represent long overdue systemic change
in the way the City views water conservation and supply policy.
While the NRAB supports the concept of such a rate policy,the Board is concerned that the water utility's
proposed conservation water rates fall short of the community's expectations for truly effective
volume-based water rates for the following reasons:
a.. Revenue-Neutral Approach Limits Effectiveness-Board members are concerned that the
assumptions on which the rates are based may diminish the effectiveness of incremental volume-based
rates as a water conservation tool. For example, some Board members believe the assumption that the
proposed rates must be revenue neutral places unnecessary limits onmadhitude of1he Increments to'the
point that any market-based incentives are lost. In fact, some Board members believe the increments in
• the proposed rates for single-family residential customers are so modest as to represent no incentive to
conserve at all. Furthermore, this policy change provides a unique opportunity to utilize a portion of water
utility revenues for a wider range of water demand management tools, such as education and landscaping
Mike Smith NRAB Recommendation on Conservation at Rates
. standards.
a::•Consumption Reduction Ooals.Are.lnadequate-The utility's goal for the proposed rate structure of
at 0 percent decrease in water consumption seems inadequate given the magnitude and seriousness of
the current drought, especially now that Council is considering more stringent water use restrictions.
a.. Rate Increments Should Be Included for Commercial Customers-The NRAB is concerned that
commercial water customers are not shouldering their fair share of the burden under the proposed
conservation water rates. Some Board members are concerned by the lack of volume-based rate
increments for the commercial customers because the proposed single commercial rate does less to
encourage conservation by those that consume the most water. Economic impact of the policy is an
appropriate consideration, but the Council should not favor one industry over another just as it should not
favor landscape watering by commercial customers over landscape watering by residential customers.
a..Other Water Providers Should Adopt Volume-Based Rates - Board members are concerned that
other water districts serving parts of the City may not adopt similar volume-based rates,thereby resulting
in inequitable water rates throughout the City based on geography. To address this concern,the NRAB
.recommends that Council direct the water utility to investigate all means possible to encourage special
districts to adopt effective conservation water rates similar to those adopted by our own utility to ensure
equitable rates City wide.
In summary,the NRAB recommends adoption of fair, effective, incremental, volume-based water rates.
The Board also believes the same effective volume-based rates must be implemented in all geographic
areas of the City.
As always, please feel free to contact me regarding the Board's recommendations on this issue.
Yours truly,
Randy Fischer, Chair
• Natural Resources Advisory Board
226-5363
e-mail: karand@frii.com
cc: John Fischbach, City Manager
CC: "John Fischbach" <jischbach®ci.fort-collins.co.us>, "Michelle Pawar"
<mpawar@fcgov.com>, "Mike Smith" <msmith@fcgov.com>