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Home My WebLink AboutCOUNCIL - AGENDA ITEM - 03/18/2013 - FIRST READING OF ORDINANCE NO. 047, 2013, ENACTINGDATE: March 18, 2013 STAFF: Donnie Dustin, Lance Smith Lisa Rosintoski AGENDA ITEM SUMMARY FORT COLLINS CITY COUNCIL 5 SUBJECT First Reading of Ordinance No. 047, 2013, Enacting Water Rates Adjustments for the Water Supply Shortage Response Levels Established in the Water Supply Shortage Response Plan and Amending the Plan. EXECUTIVE SUMMARY Based on the uncertainty of how much water supply will be available from the two main sources of supply, the Poudre River and Colorado-Big Thompson Project (CBT), which was presented to City Council as a staff report on February 5, the City Manager will declare Response Level 1 water restrictions for the City of Fort Collins on March 6 for the water restrictions to be effective on April 1, 2013. The Water Supply Shortage Response Plan, Ordinance No. 048, 2003, recommends water rate adjustments for Response Levels 2, 3 and 4. In preparing for the potential of moving to Response Level 2 or higher, Fort Collins Utilities staff has determined the amount that water rates need to be increased for each Response Level. Revising rates to be revenue neutral is consistent with the intent of the Water Supply Shortage Response Plan and how the rates were developed in 2003. The rates being proposed in this Ordinance attempt to maintain revenues at the 2013 budgeted level for each possible Response Level. The Ordinance also increases the Excess Water Use Surcharge for each Response Level beginning with Response Level 1. At the time the City Council declares that municipal water supply conditions are such that water restrictions are no longer needed, all water rates will revert to the rates shown in Chapter 26 of the City Code. In preparation for the implementation of the Water Supply Shortage Response Plan in the coming months, the City Manager has recommended two amendments be made to Ordinance No. 048, 2003. One involves changes to the definition and use of “water fountains” (changed to “water features”) and the other involves changes to the terms of permits for large acreage and parks and athletic/playing fields. BACKGROUND / DISCUSSION Going into 2013, staff is uncertain how much water supply will be available from the two main sources of supply, the Poudre River and Colorado-Big Thompson Project (CBT). The 2012 fires in the Poudre Canyon limited the amount of Poudre River water that was able to be treated for drinking water last year, due to poor water quality as a result of rain events over the burn area and fluctuations in the River’s flow. In addition, persistent drought conditions continue that impact the amount of water supply available. For 2013, it is unknown how much be able to be drawn from the Poudre River because of the fire-related water quality degradation. Thus, there may be the need to rely heavily on our CBT supplies from Horsetooth Reservoir. However, the amount of CBT water that will be available will not be clear until Northern Water declares the allocation available (or quota) to all unit owners in that project on April 12. It is anticipated that the quota may be low due to poor snowpack conditions. As such, not knowing how much water will be available staff believes it is in the best interest of the community’s water supply resources to implement Response Level 1 water restrictions, effective April 1, 2013. On March 6, City Manager Darin Atteberry will declare the restrictions. In April 2003, City Council adopted Ordinance No. 048, 2003, a Water Supply Shortage Response Plan. The Plan is a comprehensive document that outlines a series of measures to be enacted, including four water shortage response level water restrictions. This Plan was effective in responding to the 2003 drought efforts; therefore staff believes the Plan supports responding to the 2013 water supply conditions. Among other measures, Response Level 1 limits lawn watering to two days per week. Response Level 2 limits watering to one day per week and the adjustment to rates reflects a 15 percent reduction in water demand. Response Level 3 limits watering to one day per week for 2 hours that day and a 25 percent rate adjustment. No lawn watering is allowed between June 1 and August 31 for Response Level 4 and a 35 percent rate adjustment. March 18, 2013 -2- ITEM 5 In case it is necessary to immediately move to a higher Response Level, the Rate Ordinance increases the quantity rate charges for Response Levels 2, 3 and 4. It also includes an increase to the Excess Water Use Surcharge, beginning with Response Level 1. The reason this surcharge is increased at Response Level 1 when the quantity charges are not increased is because this surcharge reflects the use by a customer in excess of the amount of water the City would expect to be available in a normal year from the water rights, City certificates and cash in-lieu of water rights assigned to the customer premise. Water Rate Changes for Water Restrictions The following water rate increases comply with the Water Supply Shortage Response Plan, Ordinance No. 048, 2003. Proposed Water Rates Monthly water rates will not change for Response Level 1. A fourth tier has been added for single family and duplex customers. The quantity charges will change, but not the base charges. All charges are for 1,000 gallons of water use. Single Family Tier Gallons Used 2013 Rate Level 2 Level 3 Level 4 1 0-7,000 $2.189 $2.625 $3.074 $3.633 2 7,001-13,000 $2.516 $3.150 $3.689 $4.360 3 13,001-20,000 $2.894 $3.780 $4.427 $5.232 4 >20,000 $2.894 $4.536 $5.312 $6.278 Duplex Tier Gallons Used 2013 Rate Level 2 Level 3 Level 4 1 0-9,000 $2.109 $2.549 $2.991 $3.509 2 9,001-13,000 $2.424 $3.059 $3.589 $4.210 3 13,001-20,000 $2.789 $3.670 $4.307 $5.052 4 >20,000 $2.789 $4.404 $5.168 $6.063 Multi-Family – Summer Rate 2013 Rate Level 2 Level 3 Level 4 $2.547 $3.395 $4.212 $5.173 Commercial – Summer Rate 2013 Rate Level 2 Level 3 Level 4 1st Step $2.201 $2.903 $3.599 $4.610 Conservation Step $3.164 $4.173 $5.174 $6.627 Proposed Excess Water Use Surcharge The Ordinance also increases the Excess Water Use Surcharge for each Response Level beginning with Response Level 1. An annual water allotment is set based on the amount of raw water rights supplied for the account and is assessed for any use that exceeds it. The surcharges are per 1,000 gallons, in addition to the base and quantity charges. Any revenue from this surcharge is assigned to the Water Rights Reserve and not used for operational expenses. Below is a table of the proposed increases for this surcharge: March 18, 2013 -3- ITEM 5 Excess Water Use Surcharge 2013 Rate Level 1 Level 2 Level 3 Level 4 $3.060 $3.366 $4.440 $5.504 $7.050 At the time the City Council declares that municipal water supply conditions are such that water restrictions are no longer needed, all water rates will revert to the rates shown in Chapter 26 of the City Code. Proposed Changes to Ordinance No. 048, 2003 In preparation for the implementation of the Water Supply Shortage Response Plan in the coming months, the City Manager has recommended two amendments be made to the ordinance. One refers to “water fountains” and the other to the terms of two permits. Redefining Water Fountains Ordinance 048, 2003 does not allow the use of water fountains for public display for any of the Response Levels. The ordinance defines “water fountain” as follows: “ “Water fountain shall mean a water feature that either causes water to be sprayed into the air, or is a waterfall or fountain for public display. The term water fountain shall not mean a water feature of a pond or basin that performs a function essential to the support of fish life in that pond or basin.” This Ordinance changes the definition of “Water fountain” to a definition of “Water feature,” which is a more comprehensive term. The definition has been modified to apply to both public and private water features and to exclude water features that are part of a swimming pool. The proposed restrictions allow the use of both public and private water features at Level 1 and 2 and prohibit them for Level 3 and 4. With this change, distinguishing between public and private water features is no longer needed. The exclusion of water features in swimming pools is requested because the water from these features simply lands back in the pool and very little additional water is used. If we are under Level 3 or 4 restrictions, pools will be very popular as a refuge from hot, dry weather. This Ordinance amends the Water Supply Shortage Response Plan to revise the definition of “water fountain” to read as follows: “Water feature” shall mean a water feature that either causes water to be sprayed into the air, or is a waterfall or fountain. The term water feature shall not mean a water feature of a pond or basin that performs a function essential to the support of fish life in that pond or basin, or a water feature in a swimming pool. Revising Terms of Two Permits The Water Shortage Response Plan makes available permits to allow for exceptions to assigned watering days. Applications must be submitted and approved by Fort Collins Utilities. Adoption of this Ordinance will remove the current restriction on irrigating parks and public athletic/playing fields Tuesday through Thursday for Level 2 and 3, and removes the same restriction on irrigating private property of 4 acres or more for Level 2. Irrigating is still prohibited on Monday and between 10 a.m. and 6 p.m. The maximum amount of water that can be applied per week remains unchanged. This modification is needed because of the amount of time it takes to irrigate these larger properties. In addition, parks and athletic/playing fields are in use well before 10 a.m. and after 6 p.m. and they can’t be watered while they are being used. Additionally, tents, displays and infrastructure for park events often stay up overnight on weekends. March 18, 2013 -4- ITEM 5 FINANCIAL / ECONOMIC IMPACTS The rate increases are designed to generate the same revenue for the Water Fund as the original 2013 rate structure. The financial impact of implementing higher water rates through the Water Supply Shortage Response Plan is anticipated to be minimal to most residential and commercial customers who respond to the plan by using less water for irrigation. Those customers that do not reduce their water demand as expected for a given Response Level because of business processes or other reasons, will see an increase in the water charges on their utility bill. The increase of the Raw Water Surcharge will also impact those customers who use more water than their annual allotment. Fort Collins Utilities is reaching out to customers who exceeded their annual allotment in 2012 through a letter explaining the water shortage situation and encouraging those customers to use less water and/or provide additional water rights, City certificates or cash in-lieu of water rights to avoid this surcharge in 2013. Implementation of the Water Supply Shortage Response Plan may have a financial impact on the Water Fund. Attachment 1 shows the estimated revenue loss for each Response Level. The Plan calls for no rate adjustment at Response Level 1. It is estimated that remaining at Response Level 1 throughout the summer (May through October) will result in the loss of $850,000 in operating revenue to the Water Fund. ENVIRONMENTAL IMPACTS The Response Level water rate adjustments promote conservation to sustain the needed water supplies to support indoor and health and safety uses. The water restrictions target lawn watering as grass is less vulnerable to limited watering. Depending on the level of restriction, lawns may go dormant and brown lawns will be visible throughout the community. However, landscape watering for trees, shrubs and vegetable gardens is not limited, but must use a hose with a shut-off nozzle or low-volume, efficient irrigation. These landscape features are vulnerable to a lack of water and expensive to replace. Trees are often watered when lawns are watered. During the 2002-2003 restrictions, many trees were adversely affected. The City will offer landscape survival care information to citizens during the water restrictions, with a strong emphasis on caring for trees. STAFF RECOMMENDATION Staff recommends adoption of the Ordinance on First Reading. BOARD / COMMISSION RECOMMENDATION At its February 21, 2013 meeting, the Water Board voted unanimously to support Ordinance No. 047, 2013. PUBLIC OUTREACH Staff has begun the following public outreach: • Communicated in the 2012 Year-End Letter to our Customers • Contact with agricultural CBT renters, no water available for rent • Numerous media interviews • Contact with Northern Water staff A Water Supply Management Action Plan will detail key activities to provide awareness and education to the community on the water restrictions. Activities include: • Bill inserts and City News articles, starting in March to customers • Dedicated restrictions website • An icon to graphically keep public aware of water supply monitoring • Articles in City and local newsletters, newspapers and other outlets • Newspaper and magazine advertising March 18, 2013 -5- ITEM 5 • Outdoor advertising on bus benches and bus shelters • Displays at events and public locations, such as City buildings, libraries and other venues • Speakers Bureau that will give presentations to targeted customers, and to other interested organizations • Coordinate meetings for targeted customers, such as homeowner associations, industry groups, key utility customer accounts, landscape contractors, restaurants and other • Participate at events, such as Biz Ed, Residential Environmental Program, Earth Day, Chamber Green in Action, Water Works open house, ClimateWise events and others • Offer watershed tours for key accounts, City employees and the general public • Continue outreach for water rebates, sprinkler system audit program and other help for saving water Outreach key messages and information about the water restrictions, as well as enforcement procedures, will prepare the Fort Collins community for the April 1 effective date. The Water Supply Shortage Response Plan, Ordinance No. 048, 2003, states, “Upon such determination and declaration, the City Manager shall cause to be published in the local newspaper of record a notice of the restrictions and requirements corresponding to the Water Supply Shortage Response Level, as set forth herein, and the effective date of said restrictions and requirements…” The Public Notice is scheduled to be published in the Coloradoan on March 17 and March 24, and on the Fort Collins Utilities website. ATTACHMENTS 1. Estimated Revenue Impacts chart 2. Water Board minutes, February 21, 2013 3. Powerpoint presentation Estim In the is bro As th each Leve Resp Fund 5 Operat Reside Comm Irrigati Raw W PILOTs Total O Loss W Loss W * Estim mated Rev e 2013 Budg oken down in he table abov Response L l 1. The char onse Level w 502 ‐ Water ting Revenue Fo ential mercial ion Leases Water Surcharges s Operating Reven Without Rate Or With Rate Ordin mated 50% reduc venue Loss get, the Wate n the followi ve shows, rev evel. This O rt below sho without the r orecast 2013 $16 $8 s * $1 nue $26 rdinance ance ction through cu s by Restri er Fund oper ing table: venue is exp Ordinance mi ows the estim requested rat 3 Budget Excerpt from Unapproved Water Board Minutes, February 21, 2013 1 Recommendation on 2013 Water Supply Management Action Plan/Monthly Water Resources Report/Water Supply Outlook Water Engineering and Field Operations Manager Jon Haukaas introduced the item and introduced Water Resources Manager Donnie Dustin. This item was presented as a Staff Report for City Council on February 5, 2013 to describe the uncertainty of the Poudre River water supply and the Colorado Big Thompson (CBT) Project. The Water Supply Shortage Response Plan, Ordinance 048, 2003, recommends water rate adjustments for Response Levels 2, 3, and 4. Why Water Restrictions?  Poudre River supply uncertain due to the High Park Fire effects on water quality  CBT (Horsetooth Reservoir) quota unknown until early April  Persistent extreme drought conditions Mr. Dustin presented a Colorado SNOTEL Snowpack Update Map highlighting poor snowpack conditions. He also presented the U.S. Seasonal Drought Outlook as of February 7, 2013. Mr. Dustin presented the Water Supply Shortage Response Plan showing the differences between Response Level 1, 2, 3, and 4. Level 1 restrictions will go into effect April 1, 2013. The Level 1 Watering Schedule includes no lawn watering between 10 a.m. and 6 p.m. and no lawn watering on Mondays. Response Level Rate Adjustments Strategic Financial Planning Manager Lance Smith presented this information. Mr. Smith presented a graph on the Revenue Loss by Response Level. There will be no rate adjustment with Response Level 1. It will be absorbed through the reserves. Rate adjustments are allowed with Level 2, 3, and 4 restrictions. Staff is seeking Council approval for all levels. Mr. Smith presented the following graphs:  Single Family Rates by Response Level (a fourth tier has been added)  Duplex Rates by Response Level (a fourth tier has been added)  Multi-Family Rates by Response Level  Commercial Rates by Response Level Excess Water Use Surcharge Rates by Response Level Customers are given an annual allotment based on the amount of raw water supplied for the account. The allotment may be increased through additional water rights or cash in-lieu of water rights. Highlights from the discussion:  A board member asked how many customers exceeded their allotment last year. Mr. Smith stated less than 10 percent of the commercial customers exceeded their allotment.  A board member asked how the allotment is determined. Mr. Haukaas stated this is determined by the City Code.  A board member asked for staff to elaborate on the Drought Response Plan. Mr. Smith stated the rates for single family, duplex, multi-family, and commercial are part of the Drought Response Plan. The Excess Water Use Surcharge is not part of the Drought Response Plan. ATTACHMENT 2 Excerpt from Unapproved Water Board Minutes, February 21, 2013 2  A board member asked if there is enough education for customers to incorporate water conservation and xeriscaping. Mr. Haukaas stated Utilities has a Water Conservation Program. Water Conservation Specialists are available to provide water audits for customers on their usage and suggest ways to incorporate xeriscaping and low water plants in their yards. Communication and Public Engagement Customer Connections Manager Lisa Rosintoski presented this information. Key steps taken include communicated awareness in the 2012 year-end letter to customers, interviews with the media, no CBT water rented to agriculture, and the Water Supply Management Action Plan. The Water Supply Management Action Plan is a comprehensive document to recognize the problem, ways to monitor the water, how to recognize the Water Supply Response Plan, and how to communicate this information to the community. The plan also includes violation management. Staff will communicate restriction response levels by providing extensive customer communication, monitoring water supply, offering water efficiency rebates, and creating an icon to visually support awareness. Next Actions Include the Following:  March: utility bill insert  March 5 and 19 City Council: ordinance to set rates for higher response levels  April 12: CBT quota set  April 23: City Council Work Session  Ongoing: communication and outreach to public and key stakeholders Ms. Rosintoski presented the Water Supply Management Action Plan 2013 Timeline outlining actions from February through May. Highlights from the discussion:  A board member asked if his Homeowners Association (HOA) could receive e-mails regarding the water restriction information. Ms. Rosintoski stated staff will contact HOAs requesting to be a part of their e-mail and newsletter distribution lists.  A board member asked if the City website has been updated with this information. Ms. Rosintoski stated the website has been updated. The information is available at http://www.fcgov.com/water-restrictions.  A board member asked how the use of Advanced Meters will coincide with the restriction plan. Mr. Haukaas stated the customers should be able to monitor their real time usage by the May/June timeframe.  A board member asked how staff will communicate the table of rate changes. Ms. Rosintoski stated this will be communicated to customers as part of the Utility bill insert.  A board member feels it is important to distinguish between ongoing conservation and the current drought restrictions. The board member feels water levels should be communicated to customers.  A board member asked how Utilities will enforce the restrictions. Since the Water Supply Management Action Plan includes an enforcement section, Utilities will hire additional staff to monitor usage. Packets of information will be sent to customers who violate the Attachment 2 Excerpt from Unapproved Water Board Minutes, February 21, 2013 3 restrictions. Utilities priority is to inform and educate customers first and foremost. Fines are used as a last resort.  A board member asked about fines. The fines vary from $50 to $1,000. In 2002, 28 warnings and three tickets were issued. In 2003, 5 warnings were issued. No tickets were issued in 2003.  A board member asked if there has been any data from the Advanced Meters identifying water leaks. Mr. Haukaas stated the Meter Data Management System has identified some leaks in certain properties. These customers have been notified of the leaks.  A board member inquired about the modeling predictions and timeline for starting Level 2 restrictions. Mr. Dustin stated this cannot be predicted yet; however, the Water Supply Response Plan gives the City Manager the ability to initiate higher restriction levels if necessary. Staff proposed a friendly amendment to the motion to include wording on the Excess Water Use Surcharge. The original ordinance from 2003 did not include the surcharge. Discussion on the motion: There was no discussion on the motion. Vote on the motion: It passed unanimously. Vice Chairperson Bovee moved that the Water Board support the adoption of Ordinance ##, 2013, increasing water rates consistent with the City’s Water Supply Shortage Response Plan, Ordinance 048, 2003, for Response Levels 2, 3, and 4. Board Member Brown seconded the motion. Amended Motion: Vice Chairperson Bovee moved that the Water Board support the adoption of Ordinance ##, 2013, increasing water rates for Level 2, 3, and 4 of the City’s Water Supply Shortage Response Plan and the Excess Water Use Surcharge for all levels. Board Member Brown seconded the motion. Attachment 2 1 2013 Water Supply Management Action Plan Water Rate Adjustments and Response Plan Amendments City Council March 18, 2013 ATTACHMENT 3 2 Why Water Restrictions? Poudre River supply uncertain due to High Park Fire effects on water quality Persistent extreme drought conditions Colorado-Big Thompson Project (Horsetooth Reservoir) quota unknown until early April 3 Poor Snowpack Conditions South Platte 70% 3 4 Conditions Likely to Continue 5 Water Supply Shortage Response Plan • Response Level 1 – 2 days/week watering – No rate adjustments • Response Level 2 – 1 day/week watering – Adjust rates for 15% reduction (Starting Apr. 1) 6 Water Supply Shortage Response Plan • Response Level 3 – 1 day/week – 2 hour limit – Adjust rates for 25% reduction • Response Level 4 – No watering June 1 – August 31 – Response Level 3 restrictions September 1 – May 31 – Adjust rates for 35% reduction 7 Water Supply Shortage Response Plan: Response Level Rate Adjustments 8 Revenue Loss by Response Level 9 Single-Family Rates by Response Level • The rates above are per thousand gallons and are in addition to the Base charges. Tier Gallons Used 2013 Rate Level 2Level 3 Level 4 10‐7,000 $2.189 $2.625 $3.074 $3.633 27,001‐13,000 $2.516 $3.150 $3.689 $4.360 3 13,001‐20,000 $2.894 $3.780 $4.427 $5.232 4> 20,000 $2.894 $4.536 $5.312 $6.278 10 Duplex Rates by Response Level • The rates above are per thousand gallons and are in addition to the Base charges. Tier Gallons Used 2013 Rate Level 2Level 3 Level 4 10‐9,000 $2.109 $2.549 $2.991 $3.509 29,001‐13,000 $2.424 $3.059 $3.589 $4.210 3 13,001‐20,000 $2.789 $3.670 $4.307 $5.052 4> 20,000 $2.789 $4.404 $5.168 $6.063 11 Multi-Family Rates by Response Level • The rates above are per thousand gallons and are in addition to the Base charges. Multifamily 2013 Rate Level 2Level 3Level 4 Summer $2.547 $3.395 $4.212 $5.173 12 Commercial Rates by Response Level • The rates above are per thousand gallons and are in addition to the Base charges. • The Conservation Step is the second tier for commercial customers who exceed their monthly allotment. The number of gallons at which it is applied varies by tap size. Commercial Summer 2013 Rate Level 2Level 3Level 4 1st step $2.201 $2.903 $3.599 $4.610 Conservation Step $3.164 $4.173 $5.174 $6.627 13 Excess Water Use Surcharge Rates by Response Level • The rates above are per thousand gallons and are in addition to the Base and Use charges. • Based on the amount of raw water supplied for the account, customers are given an annual allotment. The allotment may be increased through additional water rights or cash in‐lieu of water rights. 2013 Rate Level 1 Level 2 Level 3 Level 4 Excess Water Use Surcharge $3.060 $3.366 $4.440 $5.504 $7.050 14 Water Supply Shortage Response Plan: Communication and Public Engagement 15 Water Supply Management Action Plan Comprehensive Action Plan • Water Supply Conditions • Water Supply Shortage Response Plan • Communication • Public Engagement • Water Restrictions Violation Management 16 Water Supply Management Action Plan Public Engagement • Speakers Bureau • Irrigation Program • Conservation Program • Rebates Communication • Utility Bill Insert • Collaboration with media • Website • Bus and Billboards 17 Next Actions • March: utility bill insert • March 26: second reading of ordinance • April 12: CBT quota set • April 23: City Council Work Session • Ongoing: communication and outreach to public and key stakeholders 18 Water Supply Management Action Plan 2013 Time line February • Feb. 5 - City Council Staff Report • February finalize brochure for utility bill delivery in March • Feb. 21 - Water Board Update • Finalize WSMAP for Utilities Director and City Manager Review March • City Manager declares Response Level 1 water restrictions effective April 1 • Notice submitted to newspaper per Water Shortage Ordinance • Mar. 7 - Water Board Update • Mar. 18 - Water Rate Ordinance – first reading • Mar. 26 - Water Rate Ordinance – second reading • Customers receive water restrictions utility bill insert April • April 1 – Response Level 1 water restrictions effective • April 2 - City Council elections • April 12 - NCWCD Quota known to assess potential Response Level change • April 16 - City Council Staff Report • April 18 – Water Board Update • April 23 - City Council Work 19 Water Supply Shortage Response Plan: Water Features and Permit Changes 20 Water Features (Splash Parks and Fountains) • ON: Levels 1 & 2 • OFF: Levels 3 & 4 21 Parks/Fields and Large Acreage Irrigation • Parks and fields: allowed Tue. through Sun. – Level 2 and 3 • 4 acres or more: allowed Tue. thru Sun. – Level 2 • Allows adequate time to irrigate • Weekends difficult (high use) • Water use remains the same 22 Questions? 1 ORDINANCE NO. 047, 2013 OF THE COUNCIL OF THE CITY OF FORT COLLINS ENACTING WATER RATES ADJUSTMENTS FOR THE WATER SUPPLY SHORTAGE RESPONSE LEVELS ESTABLISHED IN THE WATER SUPPLY SHORTAGE RESPONSE PLAN AND AMENDING THE PLAN WHEREAS, the City Council is empowered and directed by Article XII, Section 6, of the Charter of the City of Fort Collins, Colorado, to from time to time fix, establish, maintain and provide for the collection of such rates, fees or charges for utility services furnished by the City as will produce revenues sufficient to pay the costs, expenses and other obligations of the 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, on November 6, 2012, the City Council adopted on second reading Ordinance No. 113, 2012, which amended Chapter 26 of the Code of the City of Fort Collins to establish water rates for the City water utility for 2013, as provided in Section 26-118; and WHEREAS, since the time of adoption of Ordinance No. 113, 2012, City staff has determined, based on conditions in the Poudre watershed and in the City’s water supply generally, that a water shortage condition is likely to be present in 2013; and WHEREAS, in 2003, the City Council adopted Ordinance No. 048, 2003, establishing a Water Supply Shortage Response Plan that designate water supply shortage response levels and corresponding water restrictions and conservation measures to be implemented administratively based on a projected water supply shortage; and WHEREAS, by its terms, Ordinance No. 048, 2003, has remained in effect because there has been no determination or declaration by the City Council that municipal water supply conditions no longer justify the continued implementation of the Water Supply Shortage Response Plan; and WHEREAS, Ordinance No. 048 directs the City Manager to present to the Council for consideration a revised water rate structure to reflect revised consumption and revenue projections as soon as reasonably practicable after a change in the Water Supply Shortage Response Level; and WHEREAS, in anticipation of the potential for possibly severe water supply shortages during 2013, and in order to establish the water rate structure associated with each corresponding Water Supply Shortage Response Level, staff has prepared a series of rate structures, as described herein, to be applied to City water service commensurate with the Water Supply Shortage Response Level as provided herein; and 2 WHEREAS, in addition, because excess water use surcharges arise when a customer uses water beyond the applicable annual allotment for the customer, this Ordinance contains an increase to the excess water use surcharge for each Water Supply Shortage Response Level, including Level 1, to encourage customers to reduce their consumption or provide additional raw water to the City; and WHEREAS, the Water Board considered the water rates structures proposed to correspond to levels of shortage outlined in the Water Supply Shortage Response Plan at its February 21, 2013, meeting and recommended approval of the proposed water rates structures by an unanimous vote; and WHEREAS, the City Manager has recommended to the City Council that the following water rates be established, to be implemented as set forth herein to accompany the corresponding Water Supply Shortage Response Level as set forth Ordinance No. 048, 2003, as amended by this Ordinance, and as the same may be amended or replaced by further action of the City Council; and WHEREAS, in preparation for the implementation of the Water Supply Shortage Response Plan in the coming months, the City Manager has recommended that the water restrictions be revised to modify the restriction on use of water fountains so as to allow certain activities in less severe water shortage conditions, and exempt water features in outdoor swimming pools from the restrictions; and WHEREAS, the City Manager has further recommended that the City Council revise the restrictions on permits for watering of large turf areas, City parks and public playing/athletic fields to prohibit watering at Response Levels 2 and 3 only on Monday, rather than Monday through Thursday, so as to allow more flexibility in managing watering schedules on these properties given that the limit on total amount of water to be applied will remain applicable. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows: Section 1. That for all meter readings on or after the beginning of the calendar month occurring after a City Manager declaration that the City is in Water Supply Shortage Response Level 1, the water rates as set forth in Article III of Chapter 26 of the Code of the City of Fort Collins shall apply, except that the surcharge for water used in excess of an applicable annual allotment, set forth in Section 26-129(c)(2) shall be changed as follows: Sec. 26-129. Schedule D, miscellaneous fees and charges. . . . (c) The fees and requirements for raw water shall be as follows: … (2) The surcharge for water used in excess of applicable annual allotment 3 shall be three dollars and six cents ($3.06) three dollars and thirty-six and six tenth cents ($3.366) per one thousand (1,000) gallons. Section 2. That for all meter readings on or after the beginning of the calendar month occurring after a City Manager declaration that the City is in Water Supply Shortage Response Level 2, the water rates as set forth in Article III of Chapter 26 of the Code of the City of Fort Collins shall be revised 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 fourteen dollars and fourteen cents ($14.14). 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 two dollars and eighteen and nine-tenths cents ($2.189) sixty-two and five tenths cents ($2.625) per one thousand (1,000) gallons. For the next six thousand (6,000) gallons used per month, a charge of two dollars and fifty-one and six-tenths cents ($2.516) three dollars and fifteen cents ($3.150) per one thousand (1,000) gallons. For the next seven thousand (7,000) gallons used per month, a charge of three dollars and seventy-eight cents ($3.780) per one thousand (1,000) gallons. For all additional gallons used per month, a charge of two dollars and eighty-nine and four-tenths cents ($2.894) four dollars and fifty-three and six tenths cents ($4.536) 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 sixteen dollars and sixty-one cents ($16.61). b. Quantity charge. Residential customers with two (2) dwelling units shall pay a monthly quantity charge as follows: 4 For the first nine thousand (9,000) gallons used per month, a charge of two dollars and ten and nine-tenths cents ($2.109) fifty-four and nine tenths cents ($2.549) per one thousand (1,000) gallons. For the next four thousand (4,000) gallons used per month, a charge of two dollars and forty-two and four-tenths cents ($2.424) three dollars and five and nine tenths cents ($3.059) per one thousand (1,000) gallons. For the next seven thousand (7,000) gallons used per month, a charge of three dollars and sixty-seven cents ($3.670) per one thousand (1,000) gallons. For all additional gallons used per month, a charge of two dollars and seventy-eight and nine-tenths cents ($2.789) four dollars and forty and four tenths cents ($4.404) 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 fourteen dollars and three cents ($14.03) for the first dwelling unit and four dollars and sixty-seven cents ($4.67) 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 two dollars and three and seven-tenths cents ($2.037) 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 fifty-four and seven-tenths cents ($2.547) three dollars and thirty nine and five tenths cents ($3.395) 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. (b) Nonresidential Rates. (1) Base charge. Nonresidential, except for special users as described in Subsection 26-127(c) below, customers shall pay a base monthly charge based on meter size as follows: Meter Size (inches) Monthly Base Charge ¾ $ 12.66 1 35.31 5 1½ 96.02 2 144.71 3 220.71 4 346.49 6 672.15 8 1,187.42 (2) Quantity charges. Nonresidential customers shall pay a monthly quantity charge of one dollar and seventy-six and one-tenth cents ($1.761) per one thousand (1,000) gallons used in the winter season months of November through April. They shall pay a monthly quantity charge of two dollars and twenty and one-tenth cents ($2.201) two dollars and ninety and three tenths cents ($2.903) 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 fifty-three cents ($2.53) 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 three dollars and sixteen and four-tenths cents ($3.164) four dollars and seventeen and three tenths cents ($4.173) per one thousand (1,000) gallons used in the summer season months of May through October. The meter reading date shall generally determine the seasonal billing excess quantity charge; however, no customer shall be billed more than six (6) full billing cycles at the summer excess quantity charge. Meter Size (inches) Specified Amount (gallons per month) ¾ 100,000 1 300,000 1½ 625,000 2 1,200,000 3 1,400,000 4 2,500,000 . . . 6 Sec. 26-129. Schedule D, miscellaneous fees and charges. (a) Connection fees and service charges shall be as set forth in Subsection 26-712(b). (b) The fire hydrant fees and charges shall be as follows: (1) For installation of meter: $43.00 (2) For removal of meter: 43.00 (3) For daily rental for meter and fittings: 8.60 (4) For water service rate per one thousand (1,000) gallons water used: 5.02 A deposit may be required in the amount of the charges for the anticipated water usage and rental. (c) The fees and requirements for raw water shall be as follows: (1) To satisfy raw water requirements with in-lieu cash payments, the rate per acre-foot of RWR is sixty-five hundred dollars ($6,500.). (2) The surcharge for water used in excess of applicable annual allotment shall be three dollars and six cents ($3.06) four dollars and forty-four cents ($4.440) per one thousand (1,000) gallons. Section 3. That for all meter readings on or after the beginning of the calendar month occurring after a City Manager declaration that the City is in Water Supply Shortage Response Level 3, the water rates as set forth in Article III of Chapter 26 of the Code of the City of Fort Collins shall be revised 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 fourteen dollars and fourteen cents ($14.14). 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 7 of two dollars and eighteen and nine-tenths cents ($2.189) three dollars and seven and four tenths cents ($3.074) per one thousand (1,000) gallons. For the next six thousand (6,000) gallons used per month, a charge of two dollars and fifty-one and six-tenths cents ($2.516) three dollars and sixty-eight and nine tenths cents ($3.689) per one thousand (1,000) gallons. For the next six thousand (7,000) gallons used per month, a charge of four dollars and forty-two and seven tenths cents ($4.427) per one thousand (1,000) gallons. For all additional gallons used per month, a charge of two dollars and eighty-nine and four-tenths cents ($2.894) five dollars and thirty-one and two tenths cents ($5.312) 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 sixteen dollars and sixty-one cents ($16.61). 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 two dollars and ten and nine-tenths cents ($2.109) ninety-nine and one tenths cents ($2.991) per one thousand (1,000) gallons. For the next four thousand (4,000) gallons used per month, a charge of two dollars and forty-two and four-tenths cents ($2.424) three dollars fifty-eight and nine tenths cents ($3.589) per one thousand (1,000) gallons. For the next seven thousand (7,000) gallons used per month, a charge of four dollars and thirty and seven tenths cents ($4.307) per one thousand (1,000) gallons. For all additional gallons used per month, a charge of two dollars and seventy-eight and nine-tenths cents ($2.789) five dollars and sixteen and eight tenths cents ($5.168) 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 8 units shall pay a base monthly charge of fourteen dollars and three cents ($14.03) for the first dwelling unit and four dollars and sixty-seven cents ($4.67) 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 two dollars and three and seven-tenths cents ($2.037) 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 fifty-four and seven-tenths cents ($2.547) four dollars and twenty-one and two tenths cents ($4.212) 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. (b) Nonresidential Rates. (1) Base charge. Nonresidential, except for special users as described in Subsection 26-127(c) below, customers shall pay a base monthly charge based on meter size as follows: Meter Size (inches) Monthly Base Charge ¾ $ 12.66 1 35.31 1½ 96.02 2 144.71 3 220.71 4 346.49 6 672.15 8 1,187.42 (2) Quantity charges. Nonresidential customers shall pay a monthly quantity charge of one dollar and seventy-six and one-tenth cents ($1.761) per one thousand (1,000) gallons used in the winter season months of November through April. They shall pay a monthly quantity charge of two dollars and twenty and one-tenth cents ($2.201) three dollars and fifty-nine and nine tenths cents ($3.599) 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; 9 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 fifty-three cents ($2.53) 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 three dollars and sixteen and four-tenths cents ($3.164) five dollars and seventeen and four tenths cents ($5.174) per one thousand (1,000) gallons used in the summer season months of May through October. The meter reading date shall generally determine the seasonal billing excess quantity charge; however, no customer shall be billed more than six (6) full billing cycles at the summer excess quantity charge. Meter Size (inches) Specified Amount (gallons per month) ¾ 100,000 1 300,000 1½ 625,000 2 1,200,000 3 1,400,000 4 2,500,000 Sec. 26-129. Schedule D, miscellaneous fees and charges. (a) Connection fees and service charges shall be as set forth in Subsection 26-712(b). (b) The fire hydrant fees and charges shall be as follows: (1) For installation of meter: $43.00 (2) For removal of meter: 43.00 (3) For daily rental for meter and fittings: 8.60 (4) For water service rate per one thousand (1,000) gallons water used: 5.02 A deposit may be required in the amount of the charges for the anticipated water usage and rental. (c) The fees and requirements for raw water shall be as follows: (1) To satisfy raw water requirements with in-lieu cash payments, the rate per acre-foot of RWR is sixty-five hundred dollars ($6,500.). 10 (2) The surcharge for water used in excess of applicable annual allotment shall be three dollars and six cents ($3.06) five dollars and fifty and four tenth cents ($5.504) per one thousand (1,000) gallons. Section 4. That for all meter readings on or after the beginning of the calendar month occurring after a City Manager declaration that the City is in Water Supply Shortage Response Level 4, the water rates as set forth in Article III of Chapter 26 of the Code of the City of Fort Collins shall be revised 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 fourteen dollars and fourteen cents ($14.14). 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 two dollars and eighteen and nine-tenths cents ($2.189) three dollars and sixty-three and three tenths cents ($3.633) per one thousand (1,000) gallons. For the next six thousand (6,000) gallons used per month, a charge of two dollars and fifty-one and six-tenths cents ($2.516) four dollars and thirty-six cents ($4.360) per one thousand (1,000) gallons. For the next six thousand (7,000) gallons used per month, a charge of five dollars and twenty-three and two tenths cents ($5.232) per one thousand (1,000) gallons. For all additional gallons used per month, a charge of two dollars and eighty-nine and four-tenths cents ($2.894) six dollars and twenty- seven and eight tenths cents ($6.278) 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 sixteen dollars and sixty-one cents ($16.61). 11 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 two dollars and ten and nine-tenths cents ($2.109) three dollars and fifty and nine tenths cents ($3.509) per one thousand (1,000) gallons. For the next four thousand (4,000) gallons used per month, a charge of two dollars and forty-two and four-tenths cents ($2.424) four dollars and twenty-one cents ($4.210) per one thousand (1,000) gallons. For the next seven thousand (7,000) gallons used per month, a charge of five dollars and five and two tenths cents ($5.052) per one thousand (1,000) gallons. For all additional gallons used per month, a charge of two dollars and seventy-eight and nine-tenths cents ($2.789) six dollars and six and three tenths cents ($6.063) 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 fourteen dollars and three cents ($14.03) for the first dwelling unit and four dollars and sixty-seven cents ($4.67) 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 two dollars and three and seven-tenths cents ($2.037) 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 fifty-four and seven-tenths cents ($2.547) five dollars and seventeen and three tenths cents ($5.173) 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. (b) Nonresidential Rates. (1) Base charge. Nonresidential, except for special users as described in Subsection 26-127(c) below, customers shall pay a base monthly charge based on meter size as follows: Meter Size (inches) Monthly Base Charge 12 ¾ $ 12.66 1 35.31 1½ 96.02 2 144.71 3 220.71 4 346.49 6 672.15 8 1,187.42 (2) Quantity charges. Nonresidential customers shall pay a monthly quantity charge of one dollar and seventy-six and one-tenth cents ($1.761) per one thousand (1,000) gallons used in the winter season months of November through April. They shall pay a monthly quantity charge of two dollars and twenty and one-tenth cents ($2.201) four dollars and sixty-one cents ($4.610) 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 fifty-three cents ($2.53) 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 three dollars and sixteen and four-tenths cents ($3.164) six dollars and sixty-two and seven tenths cents ($6.627) 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. 13 Meter Size (inches) Specified Amount (gallons per month) ¾ 100,000 1 300,000 1½ 625,000 2 1,200,000 3 1,400,000 4 2,500,000 Sec. 26-129. Schedule D, miscellaneous fees and charges. (a) Connection fees and service charges shall be as set forth in Subsection 26-712(b). (b) The fire hydrant fees and charges shall be as follows: (1) For installation of meter: $43.00 (2) For removal of meter: 43.00 (3) For daily rental for meter and fittings: 8.60 (4) For water service rate per one thousand (1,000) gallons water used: 5.02 A deposit may be required in the amount of the charges for the anticipated water usage and rental. (c) The fees and requirements for raw water shall be as follows: (1) To satisfy raw water requirements with in-lieu cash payments, the rate per acre-foot of RWR is sixty-five hundred dollars ($6,500.). (2) The surcharge for water used in excess of applicable annual allotment shall be three dollars and six cents ($3.06) seven dollars and five cents ($7.050) per one thousand (1,000) gallons. Section 5. That the water rate structure described in this Ordinance for any Water Supply Shortage Response Level shall go into effect and become the operative water rate structure for meter readings on or after the beginning of the calendar month occurring after a City Manager declaration of said Water Supply Shortage Response Level to be in effect. Section 6. Except as otherwise modified by this Ordinance, all water rates, fees and charges as set forth in Article III of Chapter 26 of the Code of the City of Fort Collins shall continue in full force and effect. 14 Section 7. That Subsection 3.N of Ordinance No. 048, 2003, deleting the definition of “Water fountain”, and replacing it with a definition of “Water feature,” to read as follows. N. Water fountain” shall mean a water feature that either causes water to be sprayed into the air, or is a waterfall or fountain for public display. The term water fountain shall not mean a water feature of a pond or basis that performs a function essential to the support of fish life in that pond or basin. “Water feature” shall mean a water feature that either causes water to be sprayed into the air, or is a waterfall or fountain. The term water feature shall not mean a water feature of a pond or basin that performs a function essential to the support of fish life in that pond or basin, or a water feature in a swimming pool. Section 8. That item number 2.d, “Lawn & turf watering exceptions by permit, 4 acres or more,” on page 2 of the Water Supply Shortage Response Plan attached to Ordinance No. 048, 2003, as Exhibit “A,” is hereby amended to read as follows. 15 Response Level 1 Response Level 2 Response Level 3 Response Level 4 2. Lawn & turf watering Exceptions by permit (Note: All permits must be displayed so they are visible from the street or sidewalk.) . . . . . . . . . . . . . . . d. 4 acres or more Permit required for a special watering schedule to accommodate areas of 4 acres or more. Max. of 1.00” per week. No watering on Monday and between the hours of 10 a.m. and 6 p.m. Permit required for a special watering schedule to accommodate areas of 4 acres or more. Max. of 0.75” per week. No watering on Monday thru Thursday and between the hours of 10 a.m. and 6 p.m. No exceptions No exceptions . . . . . . . . . . . . . . . Section 9. That item number 2.e, “Lawn & turf watering exceptions by permit, City parks & public athletic/playing fields,” on page 2 of the Water Supply Shortage Response Plan attached to Ordinance No. 048, 2003, as Exhibit “A,” is hereby amended to read as follows. Response Level 1 Response Level 2 Response Level 3 Response Level 4 2. Lawn & turf watering Exceptions by permit (Note: All permits must be displayed so they are visible from the street or sidewalk.) . . . . . . . . . . . . . . . e. City parks & public athletic/playing fields Permit required for a 16 Level 1 Level 2 Level 3 Level 4 . . . . . . . . . . . . . . . 9. Water features Fountains Public Display Private Unrestricted No use allowed Unrestricted Unrestricted No use allowed No use allowed No use allowed No use allowed No use allowed No use allowed No use allowed No use allowed . . . . . . . . . . . . . . . Introduced, considered favorably on first reading, and ordered published this 18th day of March, A.D. 2013, and to be presented for final passage on the 26th day of March A.D. 2013. _________________________________ Mayor ATTEST: _____________________________ City Clerk Passed and adopted on final reading on the 26th day of March, A.D. 2013. _________________________________ Mayor ATTEST: _____________________________ City Clerk special watering schedule. Max. of 1.25” per week. No watering on Monday and between the hours of 10 a.m. and 6 p.m. Permit required for a special watering schedule. Max. of 1.00” per week. No watering on Monday thru Thursday and between the hours of 10 a.m. and 6 p.m. Permit required for a special watering schedule for only select fields. Max. of 0.75” per week. No watering on Monday thru Thursday and between the hours of 10 a.m. and 6 p.m. No exceptions . . . . . . . . . . . . . . . Section 10. That item number 9, “Water Fountains” on page 3 of the Water Supply Shortage Response Plan attached to Ordinance No. 048, 2003, as Exhibit “A,” is hereby amended to be entitled “Water features,” and to read as follows. Response Response Response Response Session May • May 7 - City Council Staff Report • Continue to monitor water supply and demand triggers to assess potential Response Level change • May 16 - Water Board Update Extensive Public Outreach and Education 6,110,000 $ 8,020,000 $650,000 $330,000 1,440,000 6,550,000 $ ( ( ustomer outreach ction Leve rating revenu pected to be l inimizes the mated revenu te increases. Level 1 15,270,000 $7,730,000 $0 $165,000 $1,330,000 24,495,000 $2,055,000) $2,055,000) h at Level 1; 75% el ue is forecas less than the revenue los ue losses for Level 2 $14,180,000 $7,070,000 $0 $82,500 $1,220,000 $22,552,500 ($3,997,500) ($897,500) % reduction at Le sted to be $2 e budgeted am s above a Re each rate cl Level 3 $13,120,000 $6,500,000 $0 $0 $1,130,000 $20,750,000 ($5,800,000) ($980,000) evel 2; 100% at L 6.55M. Thi mount at esponse ass at each Level 4 $12,130,000 $5,970,000 $0 $0 $1,040,000 $19,140,000 ($7,410,000 ($980,000 Level 3. is 0 0 0 0 0 0 0) 0) ATTACHMENT 1