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Home My WebLink AboutCOUNCIL - AGENDA ITEM - 11/05/2013 - ITEMS RELATING TO UTILITY RATES, FEES AND CHARGESAgenda Item 16 Item # 16 Page 1 AGENDA ITEM SUMMARY November 5, 2013 City Council STAFF Lance Smith, Strategic Financial Planning Manager SUBJECT Items Relating to Utility Rates, Fees and Charges for 2014. EXECUTIVE SUMMARY A. Second Reading of Ordinance No. 146, 2013, Amending Chapter 26 of the City Code to Revise the Electric Rates, Fees and Charges. B. Second Reading of Ordinance No. 147, 2013, Amending Chapter 26 of the City Code to Revise the Electric Development Fees and Charges. C. Second Reading of Ordinance No. 148, 2013, Amending Chapter 26 of the City Code of the City of Fort Collins to the Revise Water Rates and Charges. D. Second Reading of Ordinance No. 149, 2013 ,Amending Chapter 26 of the City Code to Revise the Water Plant Investment Fees. E. Second Reading of Ordinance No. 150, 2013, Amending Chapter 26 of the City Code to Revise the Wastewater Rates and Charges. F. Second Reading of Ordinance No. 151, 2013, Amending Chapter 26 of the City Code of the City of Fort Collins to Revise the Sewer Plant Investment Fees. G. Second Reading of Ordinance No. 152, 2013, Amending Chapter 26 of the City Code to Revise the Stormwater Plant Investment Fees. H. Postponement of Second Reading of Ordinance No. 153, 2013, Amending Chapter 10 of the City Code of the City of Fort Collins to Revise Floodplain Permit Fees Indefinitely. The purpose of this item is to adopt the 2014 Utility rates, fees and charges. The approved 2014 City Budget included small gradual rate increases in the electric, water and wastewater utilities. The rate increases being proposed in these Ordinances are consistent with or less than what is shown in the approved 2014 City Budget. These Ordinances were adopted on First Reading on October 15, 2013. Councilmember Campana recused himself from the discussion. Ordinance Nos. 146 (Electric Rates), 148 (Water Rates), 149 (Water Plant Investment Fees), 151 (Sewer Plant Investment Fees), 152 (Stormwater Plant Investment Fees) and 153 (Floodplain Permit Fees) were unanimously adopted. Ordinance Nos. 147 (Electric Development Fees), and 150 (Wastewater Rates) were adopted by a vote of 5-1 (Nays: Weitkunat). Ordinance No. 150, 2013 (Wastewater Rates) has been amended on Second Reading to correct an error in the new base charge for 1 1/2" connections to reflect the new base charge of $37.85. Agenda Item 16 Item # 16 Page 2 Ordinance No. 151, 2013 (Sewer Plant Investment Fees) has been amended on Second Reading to reflect the change from standard fees for 3 inch connections to development specific fees reflected elsewhere in the ordinance. Staff requests that Ordinance No. 153, 2013 (Floodplain Permit Fees) be postponed indefinitely. A new Ordinance will be presented for First Reading on November 19, 2013, that includes all of the permit fee changes being proposed for 2014, some of which were not included in Ordinance No. 153, 2013. STAFF RECOMMENDATION Staff recommends adoption of Ordinance Nos. 146-152, 2013, on Second Reading and postponement of Ordinance No. 153, 2013 indefinitely. ATTACHMENTS 1. First Reading Agenda Item Summary, October 15, 2013 (without attachments) 2. Powerpoint presentation Agenda Item 26 Item # 26 Page 1 AGENDA ITEM SUMMARY October 15, 2013 City Council STAFF Lance Smith, Strategic Financial Planning Manager SUBJECT Items Relating to Utility Rates, Fees and Charges for 2014. EXECUTIVE SUMMARY A. First Reading of Ordinance No. 146, 2013, Amending Chapter 26 of the City Code to Revise the Electric Rates, Fees and Charges. B. First Reading of Ordinance No. 147, 2013, Amending Chapter 26 of the City Code to Revise the Electric Development Fees and Charges. (Option A or Option B) C. First Reading of Ordinance No. 148, 2013, Amending Chapter 26 of the City Code of the City of Fort Collins to the Revise Water Rates and Charges. (Option A or Option B) D. First Reading of Ordinance No. 149, 2013 ,Amending Chapter 26 of the City Code to Revise the Water Plant Investment Fees. E. First Reading of Ordinance No. 150, 2013, Amending Chapter 26 of the City Code to Revise the Wastewater Rates and Charges. (Option A or Option B) F. First Reading of Ordinance No. 151, 2013, Amending Chapter 26 of the City Code of the City of Fort Collins to Revise the Sewer Plant Investment Fees. G. First Reading of Ordinance No. 152, 2013, Amending Chapter 26 of the City Code to Revise the Stormwater Plant Investment Fees. H. First Reading of Ordinance No. 153, 2013, Amending Chapter 10 of the City Code of the City of Fort Collins to Revise Floodplain Permit Fees. The purpose of this item is to adopt the 2014 Utility rates, fees and charges. The approved 2014 City Budget included small gradual rate increases in the electric, water and wastewater utilities. The rate increases being proposed in these Ordinances are consistent with or less than what is shown in the approved 2014 City Budget. Agenda Item 26 Item # 26 Page 2 The table above shows the overall changes in the operational revenues for each utility. In the discussion below the rate class specific adjustments are given including modest reductions in water and wastewater rates for certain rate classes. At the request of City Council, two options are being presented for water and wastewater rate class specific adjustments (noted as “Option A” and “Option B”). Fees changes are also being proposed. Increases are proposed for the electric development fees, the stormwater plant investment fees and the floodplain permit fees. Because part of the reason the electric development fees are being proposed to increase is due to a formula correction, two options are being presented for consideration here, (noted as “Option A” and “Option B”). Water and wastewater plant investment fees are being proposed to decrease for standard connections, due to reduced average usage per customer, although the unit costs are proposed to increase. STAFF RECOMMENDATION Staff recommends adoption of the proposed Ordinances on First Reading, with the ordinances describing “Option A” being adopted for both water and wastewater rates. Staff recommends implementing the full electric development fee in 2014, as described in the Ordinance. BACKGROUND / DISCUSSION A. Proposed Monthly Utility Rate Adjustments The recommended 2014 rate changes are consistent with or less than what is shown in the approved 2014 City Budget at a utility-wide level. Individual customer increases will vary by rate class and season. All proposed rates would be effective for meter readings on or after January 1, 2014. Electric Rates - First Reading of Ordinance No. 146, 2013, Amending Chapter 26 of the City Code to Revise Electric Rates, Fees and Charges. Staff proposes a 2.0% increase in electric rates. This increase is less than in the adopted 2014 budget due to Platte River Power Authority’s rate smoothing and anticipated increase in surplus power sales revenues. The 2.0% increase in Platte River Power Authority’s wholesale rates results in a retail increase of approximately 1.5% for Fort Collins Utility customers. The increased cost for purchased power is passed through to all customer classes in the energy charge for each rate schedule with no change in the associated demand charges. Because the energy charge makes up a larger portion of the overall costs of service for large customer classes, the retail rate increases will be greater for the large commercial and industrial customers than it is for the residential and small commercial classes. In addition, the 2014 retail increase includes the second phase of funding for the Fort Collins Solar Program. This is an additional $500,000 per year for a total of $1,000,000 in annual funding for the Council approved renewable energy 2014 Proposed Rate Adjustments Utility Original 2013‐14 Budget Current Proposal Fees to Be Adjusted? Electric 3.5% 2.0% Yes Water 4.0% 4.0% Yes Waste Water 3.0% 3.0% Yes Storm Water 0.0% 0.0% Yes Agenda Item 26 Item # 26 Page 3 program. The $500,000 is approximately equivalent to a 0.5% retail rate increase. The following graph shows the proposed retail increase by season for each customer class. Water Rates - First Reading of Ordinance No. 149, 2013 (Option A or Option B) Amending Chapter 26 of the City Code to Revise Water Rates and Charges. The water rate increases being proposed in these Ordinances are the same as those outlined in the adopted 2014 budget. For the Water Utility a 4.0% increase is requested, with 3.0% being for capital improvements and 1.0% being for ongoing potential expenses related to the High Park Fire. The proposed increase will vary by rate class. The cost of service study, which forms the basis for allocating costs between rate classes and thereby the rate adjustment for each rate class, was updated in 2013. In the past these cost of service studies have been updated every four years. Going forward these studies will be updated every two years so that changes are smaller and more immediate. The previous cost of service study was done in 2009. In every study some of the operational costs are allocated to rate classes based on the average daily demand of the class. Conservation changes in recent years have varied by rate class resulting in some shifting of costs between rate classes. This has resulted in the proposed 2014 overall increase of 4.0%, varying more than expected by rate class. Based on the 2013 cost of service study update, rate class specific adjustments have been determined as shown as Option B below. These changes are much larger than 4.0% for some rate classes. In keeping with the rate design principle of gradual adjustment, staff is recommending that the adjustments to the rate classes are introduced with the rate class specific adjustments shown as Option A below. Two options for this Ordinance are being presented for consideration on First Reading, Option A and Option B. 1.6% 1.6% 1.9% 2.0% 2.2% 2.6% 2.6% 2.0% 0% 1% 2% 3% 4% Residential Residential Demand Small Commercial Medium Commercial Large Commercial Industrial Substation Rate System 2014 Proposed Electric Rate Increases Non-Summer Summer Annual Agenda Item 26 Item # 26 Page 4 Wastewater Rates - First Reading of Ordinance No. 150, 2013 (Option A or Option B) Amending Chapter 26 of the City Code to Revise Wastewater Rates and Charges The 3.0% overall rate increase being proposed in these Ordinances for wastewater is consistent with the adopted 2014 budget. As with the water increase, the proposed increase will vary by rate class based on an updated cost of service study and reflects some shifting of costs between rate classes based on average daily usage. The proposed 2014 overall increase of 3.0% based on the cost of service study results in the rate class specific adjustments shown as Option B below. These changes are much larger than 3.0% for the single family residential rate class. Just as in the case of the proposed water rate increase, staff is recommending that the adjustments to the rate classes are introduced with the rate class specific adjustments shown as Option A below. Two options for this Ordinance are being presented for consideration on First Reading, Option A and Option B. 6.6% -5.0% 0.0% 5.3% 3.5% 4.0% 9.0% -16.4% -1.8% 7.7% 3.5% 4.0% -20.0% -15.0% -10.0% -5.0% 0.0% 5.0% 10.0% 15.0% Single Family Multifamily Duplex Commercial High Volume Industrial System-wide Proposed 2014 Water Rate Adjustments (Based on 2013 Water Cost of Service Study) Option A - Modified COS Option B - Full COS 6.1% -2.5% 2.8% -1.5% 3.0% 7.5% -5.6% 4.2% -3.6% 3.0% -8.0% -6.0% -4.0% -2.0% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% Single Family Duplex Multifamily Commercial System-wide Proposed 2014 Wastewater Rate Adjustments Agenda Item 26 Item # 26 Page 5 Stormwater Rates No changes are being proposed for 2014 stormwater monthly rates. B. Proposed Utility Development Fee Changes Electric Development Fees - First Reading of Ordinance No. 147, 2013 (Option A or Option B) Amending Chapter 26 of the City Code to Revise Electric Development Fees and Charges The annual review of the Electric Development Fees indicates that a fee increase is necessary to ensure that development costs are reimbursed fairly and fully by development. The increase this year is the result of both an increase in material costs and the correction of an error in the prior fee calculation. The prior fee rate calculation model was downloading warehouse data for unjacketed 750 MCM cable; whereas, it should have been using data for 220 mil jacketed 750 MCM cable. This correction has a small contribution to the overall proposed increase shown in the tables below. Staff is presenting the same two options here as were presented to the Energy Board. Option A reflects the full implementation of the increase in 2014. Option B proposes to smooth the portion of the overall increase that is due to the pricing error over a two year period - half in 2014 and half in 2015. The portion of the full 2014 development fee that would not be collected from the development would be subsidized by all electric customers. This fee is reviewed annually, and additional adjustments may be necessary in 2015. Electric Development Fees for Typical Single Family Residence (8600 sq ft, 70 foot frontage, 150 amp service) 2013 2014 Option A $ Inc. % Inc. $3,228 $216 7.2% $3,012 2014 Option B $ Inc. % Inc. $3,207 $195 6.5% ELECTRIC DEVELOPMENT FEES & CHARGES RESIDENTIAL Category 2013 Existing 2014 Option A % Change 2014 Option B % Change $0.04550 $0.05036 10.7% $0.04793 5.3% $10.02 $10.35 3.3% $10.35 3.3% 150amp Single Family (Non Elec Heat) $1,273 $1,398 9.8% $1,398 9.8% 200 amp Single Family (& Elec Heat 150 amp) $2,169 $2,329 7.4% $2,329 7.4% 150 amp Multi-Family (Non Elec Heat) $849 $933 9.9% $933 9.9% 200 amp Multi-Family (& Elec Heat 150 amp) $1,518 $1,638 7.9% $1,638 7.9% 1/0 $646 $672 4.0% $672 4.0% 4/0 $790 $810 2.5% $810 2.5% 350 kCM $892 $903 1.2% $903 1.2% Charge Electric Capacity Fee Per square foot Per lineal front foot Charge per Dwelling Unit Building Agenda Item 26 Item # 26 Page 6 Water Plant Investment Fees - First Reading of Ordinance No. 149, 2013 Amending Chapter 26 of the City Code to Revise Water Plant Investment Fees The water plant investment fee model has also been updated in 2013. As a result of effective conservation efforts, average consumption per customer has decreased in recent years. The impact of this change in customer behavior is a decrease in the plant capacity necessary to treat the average customer. Because the best general indicator of how much water the average new customer will need is the current consumption of a similar current customer, the result is a decrease in the plant investment fees for standard tap sizes in 2014. Nevertheless, increased capital investments limited the overall benefit of this decrease as the cost per gallon of treatment and delivery will increase in 2014. For connections 3 inches and larger, it is recommended the plant investment fee be based on specific customer requirements. Currently any connection larger than 3 inches is treated this way. Staff is recommending extending this to 3 inch connections in order to maintain consistency between the water and wastewater plant investment fee calculations (see staff recommendation below for more explanation on why this change is being recommended). ELECTRIC DEVELOPMENT FEES & CHARGES COMMERCIAL Category 2013 Existing 2014 Option A % Change 2014 Option B % Change $0.04550 $0.05036 10.7% $0.04793 5.3% $40.11 $41.25 2.8% $41.25 2.8% $9.18 $9.53 3.8% $9.53 3.8% $17.95 $18.33 2.1% $18.33 2.1% $1,300 $1,372 5.5% $1,372 5.5% $2,380 $2,442 2.6% $2,442 2.6% Utility Owned Transfromers Customer Owned Transfromers Charge Electric Capacity Fee Per square foot Per lineal front foot Service Entrance (per kilowatt- amp) Building Site Charges Primary Circuit 1 phase Primary Circuit 3 phase Transformer Install 1 phase Transformer Install 3 phase $ 64.32 13.5% $ 46.23 $ 53.87 $ 53.87 16.5% $ 56.68 $ 64.32 13.5% 16.5% Agenda Item 26 Item # 26 Page 7 Wastewater Plant Investment Fees - First Reading of Ordinance No. 150, 2013 Amending Chapter 26 of the City Code to Revise Wastewater Plant Investment Fees The wastewater plant investment fee model has also been updated in 2013. As with water, effective conservation efforts have reduced the average consumption per customer in recent years resulting in a decrease in the proposed plant investment fees for standard tap sizes in 2014. The table below summarizes the proposed wastewater plant investment fees. Water Plant Investment Fees By Customer Class 2013 2014 Customer Class / Meter Size Peak Day Usage PIF Fee Peak Day Usage Change PIF Fee Change gpd $ gpd % $ % PIF $/gpd $ 4.26 $ 4.43 4.0% Single Family Res Domestic Use (base) 172 $730 162 -6% $720 -1.4% Peak Use (per sqft) 785 $0.39 627 -20% $0.32 -17.9% Multi-family (per unit) Domestic Use (base) 120 $510 121 1% $540 5.9% Peak Use (per sqft) 217 $0.27 192 -12% $0.25 -7.4% Nonresidential Meter Size inches 3/4 1,850 $7,880 1,580 -15% $7,000 -11.2% 1 5,340 $22,750 4,300 -19% $19,050 -16.3% 1 1/2 11,130 $47,410 9,390 -16% $41,600 -12.3% 2 16,970 $72,290 14,540 -14% $64,410 -10.9% 3 38,800 $165,290 32,730 -16% $144,990 -12.3% > 3 inches Based on specific customer requirements Agenda Item 26 Item # 26 Page 8 The second to last row of the table above is highlighted to show the significant increase in the average volume for 3 inch connections and the resulting model increase of 43.9% in the plant investment fee. Rather than treating every new 3 inch service connection by 43.9% through a standard plant investment fee, it is recommended that 3 inch connections be treated the same as larger connections by basing the plant investment fee on specific customer requirements. For consistency in fee assessments, it is recommended that the same change is made for 3 inch water service connections. Stormwater Plant Investment Fees - First Reading of Ordinance No. 152, 2013 Amending Chapter 26 of the City Code to Revise Stormwater Plant Investment Fees Continued capital investment in the stormwater utility increases the value of the stormwater system year over year. This increased system value drives the plant investment fees paid by development to buy into the existing stormwater system up as well. Stormwater plant investment fees were last changed for 2012. The proposed increase for 2014 is 22%. Floodplain Permit Fees - First Reading of Ordinance No. 153, 2013 Amending Chapter 10 of the City Code to Revise Floodplain Permit Fees Chapter 10 (Flood Prevention and Protection) of the City Code specifies review fees associated with floodplain administration:  An applicant for a floodplain use permit shall pay twenty-five dollars ($25), see Sec. 10-27(j). Floodplain use permit; Wastewater Plant Investment Fees By Customer Class Current Fees Proposed 2014 Volume Volume gpd Proposed Fee Customer Class 05-'08 data Fees 09-'12 data Change PIF Change gpd $ gpd % $ % PIF $/gpd $ 11.46 $ 12.35 7.8% Single family Res 300 $ 3,440 250 -17% $ 3,090 -10.2% Duplex & Multi-fam 210 $ 2,410 200 -5% $ 2,470 2.5% Nonresidential Meter Size (inches) 3/4" 600 $ 6,880 530 -12% $ 6,550 -4.8% 1" 1,510 $ 17,300 1,250 -17% $ 15,440 -10.8% 1 1/2" 2,660 $ 30,480 2,420 -9% $ 29,890 -1.9% 2" 4,670 $ 53,520 4,760 2% $ 58,790 9.8% 3" 12,680 $ 145,310 16,930 34% $ 209,090 43.9% > 3 inches Based on specific customer requirements Stormwater Plant Investment Fee 2013 Current Fee (per acre) 2014 Proposed Fee (per acre) % Change $6,390 $7,817 22% Agenda Item 26 Item # 26 Page 9  An applicant who is required to furnish a floodplain modeling analysis shall pay an additional fee of three hundred dollars ($300.), see Sec. 10-27(j). Floodplain use permit; and  An applicant who is requesting a variance shall pay a variance processing fee of three hundred dollars ($300), see Sec. 10-28(c) - Appeals/variance procedure. These fees and their respective dollar amounts have not increased since they were originally adopted (Ordinance No. 037, 2005, March 15, 2005). The current fees do not provide a mechanism to properly account for the significant review times associated with certain types of floodplain reviews including Conditional Letters of Map Revision (CLOMRs), Letters of Map Revision (LOMRs) and variance requests. Stormwater Master Planning and Floodplain Administrative (Stormwater), and staff recommends that a new fee structure be established to better assign costs to floodplain review applicants. The intent of the proposed floodplain administration review fees is to institute a “user pay” approach wherein an applicant who is requesting floodplain review services pays for those instead of having those costs charged to stormwater utility customers, generally, through existing stormwater service fees. Stormwater staff performed an internal analysis using data collected over the last three years to determine the approximate average amount of staff time associated with specific floodplain reviews. The results show that the current review fees do not appropriately reflect the staff effort necessary to perform the review functions. The floodplain permit application fee is proposed to increase from $25 to $50. The proposed fee structure has categories of review fees that would be collected based on the level of review. In order to promote more complete submittals and reduce the number of floodplain analysis/CLOMR/LOMR reviews, staff has proposed a fee structure that collects an initial fee for up to two reviews. Each additional floodplain analysis/CLOMR/LOMR review after the first two reviews would have a $500 fee plus $50 for each review hour over 10 hours. This concept is similar to that used by several other Colorado communities. The variance fee is also proposed at $1,000 to better reflect the average number of hours (20) of staff review and preparation time associated with presenting the variance to the Water Board. Please see the attached file named “Proposed 2014 Fort Collins Floodplain Permit Fees.xlsx” for more detail on the proposed fee adjustments. C. Utility Bill Comparisons The standard residential customer’s bill will increase in 2014 under the proposed rate changes by 4.0% in the summer if Option A is approved for both water and wastewater or 5.0% if Option B is approved for both water and wastewater. During the rest of the year the increase with Option A is 3.4% or 4.2% with Option B. The tables below show the impacts of each of the proposed rate changes on the overall residential utility bill. Agenda Item 26 Item # 26 Page 10 The next two tables provide some comparison of the utility bills for customers of Fort Collins Utilities with the proposed 2014 rate adjustments and neighboring communities based on the current rates in those communities. Current Estimated 2013 2014 $% $% Increase Increase Increase Increase Electric 700 kWh/mo Stormwater 8,600 sq.ft. lot, light runoff Wastewater 4,800 gal/mo WQA Water 15,000 gal/mo Total Estimated Average Monthly Utility Bill $167.97 $174.70 $6.73 4.0% $176.43 $8.46 5.0% Current Estimated 2013 2014 $% $% Increase Increase Increase Increase Electric 700 kWh/mo Stormwater 8,600 sq.ft. lot, light runoff Wastewater 4,800 gal/mo $30.88 $32.76 WQA Water 5,000 gal/mo Total Estimated Average Monthly Utility Bill $133.98 $138.58 $4.60 3.4% $139.66 $5.68 4.2% $26.60 $28.34 $1.75 6.6% $28.98 $2.38 9.0% $0.00 0.0% $1.89 6.1% $33.21 $2.33 7.6% $14.26 $14.26 $0.00 0.0% $14.26 WINTER Option A Option B $62.24 $63.21 $0.96 1.5% $63.21 $0.96 1.5% $2.33 7.6% $53.37 $56.88 $3.51 6.6% $58.16 $4.79 9.0% $30.88 $32.76 $1.89 6.1% $33.21 $1.34 1.9% $14.26 $14.26 $0.00 0.0% $14.26 $0.00 0.0% $69.46 $70.80 $1.34 1.9% $70.80 Typical Residential Customer – Monthly Utility Bill SUMMER Option A Option B Loveland Longmont Denver Boulder Greeley Aurora Ft. Collins Ft. Collins- Opt A Ft. Collins- Opt B Co.Sprs Stormwater $10.39 $7.77 $9.23 $7.47 $5.63 $8.16 $14.26 $14.26 $14.26 $- Wastewater $18.81 $25.11 $17.18 $22.54 $20.09 $18.32 $30.88 $32.76 $33.21 $31.27 Water $18.82 $14.80 $19.28 $20.76 $29.90 $38.41 $26.59 $28.34 $28.98 $35.12 Electric $59.26 $60.31 $68.86 $68.86 $68.86 $68.86 $62.24 $63.21 $63.21 $77.96 $- Agenda Item 26 Item # 26 Page 11 FINANCIAL / ECONOMIC IMPACTS The proposed rate ordinances will increase costs of the typical residential customer receiving electric service by $1.34 in the Summer and $0.96 per month for the remainder of the year. The typical residential customer receiving water and wastewater service will see a Summer increase of either $5.40 or $7.12 per month and a monthly increase of either $3.64 or $4.71 per month for the remainder of the year, depending on which “option” Council adopts. In general, more frequent and modest rate adjustments minimize the financial impacts of such adjustments to the community. Fort Collins Utilities strives to have such rate adjustments through intermediate and long term financial planning so as to avoid larger or more intermittent rate adjustments which can have more severe impacts to commercial customers on non-calendar fiscal years and residential customers on fixed incomes. ENVIRONMENTAL IMPACTS Funding from the proposed electric rate increase will directly increase the amount of solar energy utilized in Fort Collins and allow the Utilities to continue programs and services aimed at meeting the goals and objectives of the Energy Policy and Climate Action Plan. Water rate adjustments provide funding for conservation programs and environmental regulatory compliance. BOARD / COMMISSION RECOMMENDATION The Water Board was presented the same data as presented here as Options A and B however Staff recommended Option A only, rather than presenting two options. The Water Board did vote unanimously at the September Board Meeting to recommend approval of the proposed 2014 rate, plant investment and permit fee adjustments for the water, wastewater and stormwater utilities. The draft Board minutes are attached. The Energy Board voted unanimously to support the 2014 Electric rate increase. Staff did present the same options as presented here for the 2014 development fees with the Board unanimously supporting the full increase or Option A for 2014. The draft Board minutes are attached. Staff is scheduled to present the proposed rate increases to the Economic Advisory Commission on October 16, 2013. Loveland Longmont Boulder Denver Ft. Collins Greeley Ft. Collins- Opt A Ft. Collins- Opt B Aurora Co.Sprs Stormwater $10.39 $7.77 $7.47 $9.23 $14.26 $5.63 $14.26 $14.26 $8.16 $- Wastewater $18.81 $25.11 $22.54 $17.18 $30.88 $20.09 $32.76 $33.21 $18.32 $31.27 Water $36.32 $44.03 $45.17 $55.54 $53.37 $68.50 $56.88 $58.16 $91.11 $104.16 Electric $63.88 $60.31 $78.21 $78.21 $69.46 $78.21 $70.80 $70.80 $78.21 $77.96 $- $50 $100 $150 $200 $250 2013 Residential Rate Comparison Summer Water Use 15,000 Gallons Agenda Item 26 Item # 26 Page 12 PUBLIC OUTREACH Notice of the proposed electric rate changes was published in the Coloradoan on October 5, 2013, and a mailing was sent to all city electric customers residing outside of the city limits in accordance with state requirements. Commercial customers have been advised of the proposed increases through community presentations and individual meetings and communications. Staff plans to conduct outreach to all customers following the adoption of the Ordinances. Each customer’s rate class specific adjustments will be presented along with the system average adjustment through social media, print media, and meetings. Commercial customers may contact customer service for specifically their estimated rate adjustments. Residential customers may do a rate comparison through the utility website. Public meetings in October include a Key Accounts presentation on October 15th and a presentation to the Chamber of Commerce on October 4th. ATTACHMENTS 1. Work Session Summary, September 24, 2013 2. Energy Board minutes, September 5, 2013 3. Water Board minutes, September 19, 2013 4. Proposed 2014 Fort Collins Floodplain Permit Fees 5. Powerpoint presentation 1 2014 Utility Rates and Fees Second Reading November 5, 2013 ATTACHMENT 2 2 Proposed Monthly Utility Rate Adjustments 3 Electric Rates by Rate Class & Season 4 Water Adjustments by Rate Class 9.0% -16.4% -1.8% 7.7% 3.5% 4.0% -20.0% -15.0% -10.0% -5.0% 0.0% 5.0% 10.0% 15.0% Single Family Multifamily Duplex Commercial High Volume Industrial System-wide Proposed 2014 Water Rate Adjustments (Based on 2013 Water Cost of Service Study) 5 Wastewater Adjustments by Class 7.5% -5.6% 4.2% -3.6% 3.0% -8.0% -6.0% -4.0% -2.0% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% Single Family Duplex Multifamily Commercial System-wide Proposed 2014 Wastewater Rate Adjustments (Based on 2013 Wastewater Cost of Service Study) 6 Proposed Utility Development Fee Changes 7 Electric Development Fees ELECTRIC DEVELOPMENT FEES & CHARGES RESIDENTIAL Category 2013 Existing 2014 Proposed % Change $0.04550 $0.05036 10.7% $10.02 $10.35 3.3% 150amp Single Family (Non Elec Heat) $1,273 $1,398 9.8% 200 amp Single Family (& Elec Heat 150 amp) $2,169 $2,329 7.4% 150 amp Multi-Family (Non Elec Heat) $849 $933 9.9% 200 amp Multi-Family (& Elec Heat 150 amp) $1,518 $1,638 7.9% 1/0 $646 $672 4.0% 4/0 $790 $810 2.5% 350 kCM $892 $903 1.2% ELECTRIC DEVELOPMENT FEES & CHARGES COMMERCIAL Category 2013 Existing 2014 Proposed % Change $0.04550 $0.05036 10.7% $40.11 $41.25 2.8% $9.18 $9.53 3.8% $17.95 $18.33 2.1% $1,300 $1,372 5.5% $2,380 $2,442 2.6% Building Site Charges Primary Circuit 1 phase Primary Circuit 3 phase Transformer Install 1 phase Transformer Install 3 phase $ 46.23 $ 53.87 16.5% $ 56.68 $ 64.32 13.5% Building Site Charges Secondary Service Charge Electric Capacity Fee Per square foot Per lineal front foot Service 8 Water Plant Investment Fees 2013 2014 Customer Class / Meter Size Peak Day Usage PIF Fee Peak Day Usage Change PIF Fee Change gpd $ gpd % $ % PIF $/gpd $ 4.26 $ 4.43 4.0% Single Family Res Domestic Use (base) 172 $730 162 -6% $720 -1.4% Peak Use (per sqft) 785 $0.39 627 -20% $0.32 -17.9% Multi-family (per unit) Domestic Use (base) 120 $510 121 1% $540 5.9% Peak Use (per sqft) 217 $0.27 192 -12% $0.25 -7.4% Nonresidential Meter Size inches 3/4 1,850 $7,880 1,580 -15% $7,000 -11.2% 1 5,340 $22,750 4,300 -19% $19,050 -16.3% 1 1/2 11,130 $47,410 9,390 -16% $41,600 -12.3% 2 16,970 $72,290 14,540 -14% $64,410 -10.9% > 2 inches Based on specific customer requirements 9 Wastewater Plant Investment Fees Current Fees Proposed 2014 Volume Volume gpd Proposed Fee Customer Class 05-'08 data Fees 09-'12 data Change PIF Change gpd $ gpd % $ % PIF $/gpd $ 11.46 $ 12.35 7.8% Single family Res 300 $ 3,440 250 -17% $ 3,090 -10.2% Duplex & Multi-fam 210 $ 2,410 200 -5% $ 2,470 2.5% Nonresidential Meter Size (inches) 3/4" 600 $ 6,880 530 -12% $ 6,550 -4.8% 1" 1,510 $ 17,300 1,250 -17% $ 15,440 -10.8% 1 1/2" 2,660 $ 30,480 2,420 -9% $ 29,890 -1.9% 2" 4,670 $ 53,520 4,760 2% $ 58,790 9.8% > 2 inches Based on specific customer requirements 10 Stormwater Plant Investment Fees Stormwater Plant Investment Fee 2013 Current Fee (per acre) 2014 Proposed Fee (per acre) % Change $6,390 $7,817 22% 11 Utility Bill Comparisons 12 Typical Residential Utility Bill - Summer Loveland Longmont Boulder Denver Ft. Collins Greeley Ft. Collins - 2014 Aurora Co.Sprs Stormwater $10.39 $7.77 $7.47 $9.23 $14.26 $5.63 $14.26 $8.16 $- Wastewater $18.81 $25.11 $22.54 $17.18 $30.88 $20.09 $32.76 $18.32 $31.27 Water $36.32 $44.03 $45.17 $55.54 $53.37 $68.50 $56.88 $91.11 $104.16 Electric $63.88 $60.31 $78.21 $78.21 $69.46 $78.21 $70.80 $78.21 $77.96 $- $50 $100 $150 $200 $250 2013 Residential Rate Comparison Summer Water Use 15,000 Gallons 13 Typical Residential Utility Bill - Winter Loveland Longmont Denver Boulder Greeley Aurora Ft. Collins Ft. Collins - 2014 Co.Sprs Stormwater $10.39 $7.77 $9.23 $7.47 $5.63 $8.16 $14.26 $14.26 $- Wastewater $18.81 $25.11 $17.18 $22.54 $20.09 $18.32 $30.88 $33.21 $31.27 Water $18.82 $14.80 $19.28 $20.76 $29.90 $38.41 $26.59 $28.98 $35.12 Electric $59.26 $60.31 $68.86 $68.86 $68.86 $68.86 $62.24 $63.21 $77.96 $- $20 $40 $60 $80 $100 $120 $140 $160 2013 Residential Rate Comparison Winter Water Use - 5,000 Gallons 14 Thank You - 1 - ORDINANCE NO. 146, 2013 OF THE COUNCIL OF THE CITY OF FORT COLLINS AMENDING CHAPTER 26 OF THE CODE OF THE CITY OF FORT COLLINS TO REVISE ELECTRIC RATES, FEES AND CHARGES WHEREAS, the City Council is empowered and directed by Article XII, Section 6, of the City Charter to fix, establish, maintain and provide for the collection of such rates, fees or charges for utility services furnished by the City as will produce revenues sufficient to pay the costs, expenses and other obligations of the electric utility, as set forth therein; and WHEREAS, Platte River Power Authority costs are increasing due to reduced wholesale market prices and surplus sales, increased costs of coal, and increased operating costs for aging plants; and WHEREAS, Platte River Power Authority will increase the City’s wholesale cost of power approximately 2.0% in 2014; and WHEREAS, the increased wholesale power costs will require a 1.5% increase in the City’s electric rates; and WHEREAS, the adopted budget plan for 2014 budget includes an appropriation of $1,000,000 for the Fort Collins Solar Program an increase of $500,000 from the 2013 appropriation; and WHEREAS, the increased cost of the Solar Program in 2014 will require a 0.5% rate increase; and WHEREAS, the Energy Board considered the proposed electric rates, fees and changes for 2014 at its September 5, 2013, meeting and recommended approval of the rate changes by an unanimous vote; and WHEREAS, the City Manager and staff have recommended to the City Council the following electric rate adjustments for all billings issued with meter readings on or after January 1, 2014; and WHEREAS, based on the foregoing, it is the desire of the City Council to amend Chapter 26 of the City Code to revise electric rates, fees and charges. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows: Section 1. That Sections26-464(c) and (d) of the Code of the City of Fort Collins are hereby amended to read as follows: Sec. 26-464. Residential energy service, schedule R. (c) Monthly rate. The monthly rates for this schedule are as follows: - 2 - (1) Fixed charge, per account: four dollars and forty-eight cents ($4.48). (2) Distribution facilities charge, per kilowatt-hour: two and sixty-two one-hundreds cents ($0.0262). (3) Energy and demand charge, during the summer season billing months of June, July and August, with the summer season billing month determined by the month the meter is read, and provided that no customer shall be billed more than three (3) full billing cycles at the summer rate. The energy and demand charge shall be billed as follows: a. For the first five hundred (500) kilowatt hours per month, per kilowatt hour: five and eighty-three one-hundredths cents ($ 0.0583). b. For the next five hundred (500) kilowatt hours per month, per kilowatt hour: seven and forty-one one-hundredths cents ($0.0741). c. For all additional kilowatt hours per month, per kilowatt hour: ten and fifty- seven one-hundredths cents ($0.1057). (4) Energy and demand charge, during the non-summer season billing months of January through May and September through December: a. For the first five hundred (500) kilowatt hours per month, per kilowatt hour: five and fifteen one-hundredths cents ($0.0515). b. For the next five hundred (500) kilowatt hours per month, per kilowatt hour: five and fifty-three one-hundredths cents ($0.0553). c. For all additional kilowatt hours per month, per kilowatt hour: six and thirty-six one-hundredths cents ($0.0636). (5) In lieu of taxes and franchise: a charge at the rate of six and zero-tenths (6.0) percent of all monthly service charges billed pursuant to this Section. (d) Medical assistance program. (1) The rates described in Subsection (c) above shall be discounted for those electric customers to whom this rate schedule applies and who apply for such discount, as long as: a. the applicant's annual household income falls below sixty (60) percent of the Larimer County Area Median Income (as determined by the Federal Housing Authority); and b. the application is accompanied by a certified, signed statement from a licensed physician that electrical durable medical equipment used at the residential - 3 - premises is medically necessary and that such medical equipment has been assigned a Healthcare Common Procedure Coding System number; and/or c. a certified, signed statement from a licensed physician that air conditioning at the residential premises is medically necessary for a resident thereof who, in the absence of the air conditioning, may suffer medical deterioration due to a severe immune-compromising medical condition, including, but not limited to, multiple sclerosis, quadriplegia, paraplegia, scleroderma or hemiplegia; and d. the application is accompanied by a sworn affidavit from the applicant verifying that all information contained in the application, including, if applicable, the representation that air conditioning will be operational at the applicant's address during the summer billing months, is true and correct. (2) Applications for rate discounts under this Section must be submitted annually in accordance with an administratively established schedule. (3) The discounted rates for customers with electrical durable medical equipment only shall be calculated as follows: a. Fixed charge, per account: four dollars and forty-eight cents ($4.48). b. Distribution facilities charge, per kilowatt hour: two and sixty-two one- hundredths cents ($0.0262). c. Energy and demand charge, during the summer season billing months of June, July and August, with the summer season billing month determined by the month the meter is read, and provided that no customer shall be billed more than three (3) full billing cycles at the summer rate. The energy demand charge shall be billed as follows: 1. For the first five hundred (500) kilowatt hours per month, per kilowatt hour: three and twenty-nine one-hundredths cents ($0.0329). 2. For the next five hundred (500) kilowatt hours per month, per kilowatt hour: seven and forty-one one-hundredths cents ($ 0.0741). 3. For all additional kilowatt hours per month, per kilowatt hour: ten and fifty-seven one-hundredths cents: ($0.1057). d. Energy and demand charge, during the non-summer season billing months of January through May and September through December: 1. For the first five hundred (500) kilowatt hours per month, per kilowatt hour: two and eighty-two one-hundredths cents ($0.0282). - 4 - 2. For the next five hundred (500) kilowatt hours per month, per kilowatt hour: five and fifty-three one-hundredths cents ($0.0553). 3. For all additional kilowatt hours per month, per kilowatt hour: six and thirty-six one-hundredths ($0.0636). e. In lieu of taxes and franchise: a charge at the rate of six and zero-tenths (6.0) percent of all monthly service charges billed pursuant to this Section. (4) The discounted rates for customers with medical needs requiring air conditioning only shall be calculated as follows: a. Fixed charge, per account: four dollars and forty-eight cents ($4.48). b. Distribution facilities charge, per kilowatt hour: two and sixty-two one- hundredths cents ($0.0262). c. Energy and demand charge, during the summer season billing months of June, July and August, with the summer season billing month determined by the month the meter is read, and provided that no customer shall be billed more than three (3) full billing cycles at the summer rate. The energy and demand charge shall be billed as follows: 1. For the first five hundred (500) kilowatt hours per month, per kilowatt hour: three and twenty-two one-hundredths cents ($0.0322). 2. For the next five hundred (500) kilowatt hours per month, per kilowatt hour: four and ten one-hundredths cents ($0.0410). 3. For all additional kilowatt hours per month, per kilowatt hour: ten and fifty-seven one-hundredths cents ($0.1057). d. Energy and demand charge, during the non-summer season billing months of January through May and September through December: 1. For the first five hundred (500) kilowatt hours per month, per kilowatt hour: five and fifteen one-hundredths cents ($ 0.0515). 2. For the next five hundred (500) kilowatt hours per month, per kilowatt hour: five and fifty-three one-hundredths cents ($0.0553). 3. For all additional kilowatt hours per month, per kilowatt hour: six and thirty-six one-hundredths cents ($0.0636). e. In lieu of taxes and franchise: a charge at the rate of six and zero-tenths (6.0) percent of all monthly service charges billed pursuant to this Section. - 5 - (5) The discounted rates for customers with electrical durable medical equipment and medical needs requiring air conditioning shall be calculated as follows: a. Fixed charge, per account: four dollars and forty-eight cents ($4.48). b. Distribution facilities charge, per kilowatt hour: two and sixty-two one- hundredths cents ($0.0262). c. Energy and demand charge, during the summer season billing months of June, July and August, with the summer season billing month determined by the month the meter is read, and provided that no customer shall be billed more than three (3) full billing cycles at the summer rate. The energy and demand charge shall be billed as follows: 1. For the first five hundred (500) kilowatt hours per month, per kilowatt hour: two and eleven one-hundredths cents ($0.0211). 2. For the next five hundred (500) kilowatt hours per month, per kilowatt hour: two and sixty-eight one-hundredths cents ($ 0.0268). 3. For all additional kilowatt hours per month, per kilowatt hour: ten and fifty-seven one-hundredths cents ($ 0.1057). d. Energy and demand charge, during the non-summer season billing months of January through May and September through December: 1. For the first five hundred (500) kilowatt hours per month, per kilowatt hour: two and eighty-two one-hundredths cents ($0.0282). 2. For the next five hundred (500) kilowatt hours per month, per kilowatt hour: five and fifty-three one-hundredths cents ($ 0.0553). 3. For all additional kilowatt hours per month, per kilowatt hour: six and thirty-six one-hundredth cents ($ 0.0636). e. In lieu of taxes and franchise: a charge at the rate of six and zero-tenths (6.0) percent of all monthly service charges billed pursuant to this Section. (6) Notwithstanding the foregoing, no rate established under this Subsection shall reflect a discount exceeding an amount consistent with the use of one hundred fifty (150) kilowatt hours per month for the operation of electrical durable medical equipment or, if applicable, an additional amount consistent with the use of three hundred fifty (350) kilowatt hours per month for air conditioning. (7) A decision that an applicant does not qualify to participate in this program for a medical or financial reason may be appealed to the Utilities Executive Director, - 6 - who shall, prior to making his or her decision, and as he or she deems appropriate, confer with one (1) or more medical or financial experts in reviewing such appeal. Section 2. That Sections 26-465 (c) and (f) of the Code of the City of Fort Collins are hereby amended to read as follows: Sec. 26-465. Residential demand service, schedule RD (c) Monthly rate. The monthly rates are as follows: (1) Fixed charge, per account: seven dollars and twenty-four cents ($7.24). (2) Demand charge, per kilowatt: two dollars and fifty cents ($2.50). (3) Distribution facilities charge, per kilowatt-hour: two and ninety-four one- hundredths cents ($ 0.0294). (4) Energy charge, per kilowatt-hour: a. During the summer season billing months of June, July and August: four and three one-hundredths cents ($ 0.0403). b. During the non-summer season billing months of January through May and September through December: three and eighty-seven one-hundredths cents ($0.0387). c. The meter reading date shall generally determine the summer season billing months; however, no customer shall be billed more than three (3) full billing cycles at the summer rate. (5) In lieu of taxes and franchise: a charge at the rate of six and zero-tenths (6.0) percent of monthly service charges billed pursuant to this Section. (f) Standby service charges. Standby service, if available, will be provided on an annual contract basis at a level at least sufficient to meet probable service demand (in kilowatts) as determined by the customer and approved by the utility according to the following: (1) The monthly standby distribution charge shall be one dollar and twenty-three cents ($1.23) per kilowatt of contracted standby service. This charge shall be in lieu of the distribution facilities charge. For all metered kilowatts in excess of the contracted amount, the standby distribution charge shall be three dollars and seventy-one cents ($3.71) per kilowatt. (2) In the event the contractual kilowatt amount is exceeded, the beginning date of the contract period will be reset. The first month of the new contract period will become the current billing month and such month's metered demand shall become the minimum allowable contract demand for the standby service. Requests for - 7 - standby service may be subject to a waiting period. An operation and maintenance charge may be added for special facilities required to provide standby service. Section 3. That Section 26-466 (c) of the Code of the City of Fort Collins is hereby amended to read as follows: Sec. 26-466. General service, schedule GS. (c) Monthly rate. The monthly rates for this schedule are as follows: (1) Fixed charge, per account: a. Single-phase, two-hundred-ampere service: three dollars and sixty-eight cents ($3.68). b. Single-phase, above two-hundred-ampere service: ten dollars and eighty-three cents ($10.83). c. Three-phase, two-hundred-ampere service: five dollars and fifty-nine cents ($5.59). d. Three-phase, above two-hundred-ampere service: thirteen dollars and twenty- four cents ($13.24). (2) Demand charge, per kilowatt-hour: a. During the summer season billing months of June, July and August: two and eighty-nine one-hundredths cents ($0.0289). b. During the non-summer season billing months of January through May and September through December: one and forty one-hundredths cents ($0.0140). c. The meter reading date shall generally determine the summer season billing months; however, no customer shall be billed more than three (3) full billing cycles at the summer rate. (3)Distribution facilities charge, per kilowatt-hour: One and eighty-seven one- hundredths cents ($0.0187). (4) Energy charge, per kilowatt-hour: a. During the summer season billing months of June, July and August: four and three one-hundredths cents ($0.0403). b. During the non-summer season billing months of January through May and September through December: three and eighty-seven one-hundredths cents ($0.0387). - 8 - c. The meter reading date shall generally determine the summer season billing months; however, no customer shall be billed more than three (3) full billing cycles at the summer rate. (5) In lieu of taxes and franchise: a charge at the rate of six and zero-tenths (6.0) percent of all monthly service charges billed pursuant to this Section. Section 4. That Sections 26-467 (c) and (f) of the Code of the City of Fort Collins are hereby amended to read as follows: Sec. 26-467. General service 25, schedule GS25. (c) Monthly rate. The monthly rates for this schedule are as follows: (1) Fixed charge, per account: a. Single-phase, two-hundred-ampere service: three dollars and sixty-eight cents ($3.68). b. Single-phase, above two-hundred-ampere service: ten dollars and eighty-three cents ($10.83). c. Three-phase, two-hundred-ampere service: five dollars and fifty-nine cents ($5.59). d. Three-phase, above two-hundred-ampere service: thirteen dollars and twenty- four cents ($13.24). (2) Demand charge, per kilowatt: a. During the summer season billing months of June, July and August: seven dollars and sixty-four cents ($7.64). b. During the non-summer season billing months of January through May and September through December: four dollars and thirty-eight cents ($4.38). c. The meter reading date shall generally determine the summer season billing months; however, no customer shall be billed more than three (3) full billing cycles at the summer rate. (3) Distribution facilities charge, per kilowatt-hour: one and eighty-seven one- hundredths cents ($0.0187). (4) Energy charge, per kilowatt-hour: a. During the summer season billing months of June, July and August: four and three one-hundredths cents ($0.0403). - 9 - b. During the non-summer season billing months of January through May and September through December: three and eighty-seven one-hundredths cents ($0.0387). c. The meter reading date shall generally determine the summer season billing months; however, no customer shall be billed more than three (3) full billing cycles at the summer rate. (5) In lieu of taxes and franchise: a charge at the rate of six and zero-tenths (6.0) percent of all monthly service charges billed pursuant to this Section. (f) Standby service charges. Standby service, if available, will be provided on an annual contract basis at a level at least sufficient to meet probable service demand (in kilowatts) as determined by the customer and approved by the utility according to the following: (1) The monthly standby distribution charge shall be four dollars and forty-three cents ($4.43) per kilowatt of contracted standby service. This charge shall be in lieu of the distribution facilities charge. For all metered kilowatts in excess of the contracted amount, the standby distribution charge shall be thirteen and twenty- nine cents ($13.29) per kilowatt. (2) In the event the contractual kilowatt amount is exceeded, the beginning date of the contract period will be reset. The first month of the new contract period will become the current billing month and such month's metered demand shall become the minimum allowable contract demand for the standby service. Requests for standby service may be subject to a waiting period. An operation and maintenance charge may be added for special facilities required to provide standby service. Section 5. That numbered Section 26-468 (c), (f) and (g) of the Code of the City of Fort Collins are hereby amended to read as follows: Sec. 26-468. General service 50, schedule GS50. (c) Monthly rate. The monthly rates for this schedule are as follows: (1) Fixed charge, per account: twenty-one dollars and two cents ($21.02). An additional charge of forty dollars and zero cents ($40.) may be assessed if telephone communication service is not provided by the customer. (2) Coincident demand charge, per kilowatt: a. During the summer season billing months of June, July and August: eleven and eighteen cents ($11.18). b. During the non-summer season billing months of January through May and September through December: seven dollars and eighty cents ($7.80). - 10 - c. The meter reading date shall generally determine the summer season billing months; however, no customer shall be billed more than three (3) full billing cycles at the summer rate. (3) Distribution facilities demand charge, per kilowatt: five dollars and seventy-eight cents ($5.78). (4) Energy charge, per kilowatt-hour: a. During the summer season billing months of June, July and August: four and three one-hundredths cents ($0.0403). b. During the non-summer season billing months of January through May and September through December: three and eighty-seven one-hundredths cents ($0.0387). c. The meter reading date shall generally determine the summer season billing months; however, no customer shall be billed more than three (3) full billing cycles at the summer rate. (5) In lieu of taxes and franchise: a charge at the rate of six and zero-tenths (6.0) percent of all monthly service charges billed pursuant to this Section. (f) Standby service charges. Standby service, if available, will be provided on an annual contract basis at a level at least sufficient to meet probable service demand (in kilowatts) as determined by the customer and approved by the utility according to the following: (1) Standby distribution charge. a. The monthly standby distribution charge shall be four dollars and seventy cents ($4.70) per kilowatt of contracted standby service. This charge shall be in lieu of the distribution facilities charge. For all metered kilowatts in excess of the contracted amount, the standby distribution charge shall be fourteen dollars and eight cents ($14.08) per kilowatt. b. In the event the contractual kilowatt amount is exceeded, the beginning date of the contract period will be reset. The first month of the new contract period will become the current billing month and such month's metered demand shall become the minimum allowable contract demand for the standby service. Requests for standby service may be subject to a waiting period. An operation and maintenance charge may be added for special facilities required to provide standby service. (2) Standby generation and transmission charge. All charges incurred by the utility under Platte River Power Authority's applicable tariffs, as may be amended from time to time, will be billed to the customer as a standby generation and transmission charge. - 11 - (g) Excess circuit charge. In the event a utility customer in this rate class desires excess circuit capacity for the purpose of controlling the available electric capacity of a backup circuit connection, this service, if available, will be provided on an annual contract basis at a level at least sufficient to meet probable backup demand (in kilowatts) as determined by the customer and approved by the utility according to the following: (1) The excess circuit charge shall be ninety-nine cents ($0.99) per contracted kilowatt of backup capacity per month. For any metered kilowatts in excess of the contracted amount, the excess circuit charge shall be two dollars and ninety-nine cents ($2.99) per kilowatt. (2) In the event the contractual kilowatt limit is exceeded, a new annual contract period will automatically begin as of the month the limit is exceeded. The metered demand in the month of exceedance shall become the minimum contracted demand level for the excess circuit charge. Section 6. That numbered Sections 26-469 (c), (f) and (g) of the Code of the City of Fort Collins are hereby amended to read as follows: Sec. 26-469. General service 750, schedule GS750. (c) Monthly rate. The monthly rates for this schedule are as follows: (1) Fixed charge, per account: sixty-one dollars and ninety-six cents ($61.96). a. Additional charge for each additional metering point: fifty-four dollars and seventy-four cents ($54.74). b. An additional charge of forty dollars and zero cents ($40.) for each metering point may be assessed if telephone communication service is not provided by the customer. (2) Coincident demand charge, per kilowatt: a. During the summer season billing months of June, July and August: eleven and one cent ($11.01). b. During the non-summer season billing months of January through May and September through December: seven dollars and sixty-nine cents ($7.69). c. The meter reading date shall generally determine the summer season billing months; however, no customer shall be billed more than three (3) full billing cycles at the summer rate. (3) Distribution facilities demand charge, per kilowatt: a. First seven hundred fifty (750) kilowatts: six dollars and two cents ($6.02). - 12 - b. All additional kilowatts: three dollars and fifty-nine cents ($3.59). (4) Energy charge, per kilowatt-hour: a. During the summer season billing months of June, July and August: three and ninety-seven one-hundredths cents ($0.0397). b. During the non-summer season billing months of January through May and September through December: three and eighty-one one-hundredths cents ($0.0381). c. The meter reading date shall generally determine the summer season billing months; however, no customer shall be billed more than three (3) full billing cycles at the summer rate. (5) In lieu of taxes and franchise: a charge at the rate of six and zero-tenths (6.0) percent of all monthly service charges billed pursuant to this Section. (f) Standby service charges. Standby service, if available, will be provided on an annual contract basis at a level at least sufficient to meet probable service demand (in kilowatts) as determined by the customer and approved by the utility according to the following: (1) Standby distribution charge. a. The monthly standby distribution charge shall be three dollars and seventy-six cents ($3.76) per kilowatt of contracted standby service. This charge shall be in lieu of the distribution facilities charge. For all metered kilowatts in excess of the contracted amount, the standby distribution charge shall be eleven dollars and twenty-nine cents ($11.29) per kilowatt. b. In the event the contractual kilowatt amount is exceeded, the beginning date of the contract period will be reset. The first month of the new contract period will become the current billing month and such month's metered demand shall become the minimum allowable contract demand for the standby service. Requests for standby service may be subject to a waiting period. An operation and maintenance charge may be added for special facilities required to provide standby service. (2) Standby generation and transmission charge. All charges incurred by the utility under the Platte River Power Authority's applicable tariffs, as may be amended from time to time, will be billed to the customer as a standby generation and transmission charge. (g) Excess circuit charge. In the event a utility customer in this rate class desires excess circuit capacity for the purpose of controlling the available electric capacity of a backup circuit connection, this service, if available, will be provided on an annual contract basis at a level at least sufficient to meet probable backup demand (in kilowatts) as determined by the customer and approved by the utility according to the following: - 13 - (1) The excess circuit charge shall be eighty cents ($0.80) per contracted kilowatt of backup capacity per month. For any metered kilowatts in excess of the contracted amount, the excess circuit charge shall be two dollars and forty-one cents ($2.41) per kilowatt. (2) In the event the contractual kilowatt limit is exceeded, a new annual contract period will automatically begin as of the month the limit is exceeded. The metered demand in the month of exceedance shall become the minimum contracted demand level for the excess circuit charge. Section 7. That 26-470 (c) and (e) of the Code of the City of Fort Collins are hereby amended to read as follows: Sec. 26-470. Substation service, schedule SS. (c) Monthly rate. The monthly rates for this schedule are as follows: (1) Fixed charge, per account: sixty-one dollars and ninety-six cents ($61.96). (2) Coincident demand charge, per kilowatt: a. During the summer season billing months of June, July and August: ten dollars and eighty-four cents ($10.84). b. During the non-summer season billing months of January through May and September through December: seven dollars and fifty-seven cents ($7.57). c. The meter reading date shall generally determine the summer season billing months; however, no customer shall be billed more than three (3) full billing cycles at the summer rate. (3) Distribution facilities demand charge, per kilowatt: two dollars and seventy-five cents ($2.75). (4) Energy charge, per kilowatt-hour: a. During the summer season billing months of June, July and August: three and ninety-one one-hundredths cents ($0.0391). b. During the non-summer season billing months of January through May and September through December: three and seventy-five one-hundredths cents ($0.0375). c. The meter reading date shall generally determine the summer season billing months; however, no customer shall be billed more than three (3) full billing cycles at the summer rate. - 14 - (5) In lieu of taxes and franchise: a charge at the rate of six and zero-tenths (6.0) percent of all monthly service charges billed pursuant to this Section. (e) Standby service charges. Standby service, if available, will be provided on an annual contract basis at a level at least sufficient to meet probable service demand (in kilowatts) as determined by the customer and approved by the utility according to the following: (1) Standby distribution charge. a. The monthly standby distribution charge shall be two dollars and fifty cents ($2.50) per kilowatt of contracted standby service. This charge shall be in lieu of the distribution facilities charge. For all metered kilowatts in excess of the contracted amount, the standby distribution charge shall be seven dollars and forty cents ($7.40) per kilowatt. b. In the event the contractual kilowatt amount is exceeded, the beginning date of the contract period will be reset. The first month of the new contract period will become the current billing month and such month's metered demand shall become the minimum allowable contract demand for the standby service. Requests for standby service may be subject to a waiting period. An operation and maintenance charge may be added for special facilities required to provide standby service. (2) Standby generation and transmission charge. All charges incurred by the utility under the Platte River Power Authority's applicable tariffs, as may be amended from time to time, will be billed to the customer as a standby generation and transmission charge. Section 8. That renumbered Section 26-472 (b) of the Code of the City of Fort Collins is hereby amended to read as follows: Sec. 26-472. Traffic signal service, schedule T. (c) Monthly rate. The monthly rates (including a six-and-zero-tenths-percent charge in lieu of taxes and franchise) are as follows: (1) Fixed charge, per account: seventy-three dollars and sixteen cents ($73.16). (2) Charge, per kilowatt-hour: six and fifty-nine one-hundredths cents ($0.0659). (3) Service extensions and signal installations made by the utility shall be paid for by the City General Fund, subject to material and installation costs at the time of installation. Section 9. That the amendments herein are effective shall go into effect for all bills issued with meter readings on or after January 1, 2014. - 15 - Introduced, considered favorably on first reading, and ordered published this 15th day of October, A.D. 2013, and to be presented for final passage on the 5th day of November, A.D. 2013. __________________________________ Mayor ATTEST: _______________________________ City Clerk Passed and adopted on final reading on the 5th day of November, A.D. 2013. __________________________________ Mayor ATTEST: _______________________________ City Clerk - 1 - ORDINANCE NO. 147, 2013 OF THE COUNCIL OF THE CITY OF FORT COLLINS AMENDING CHAPTER 26 OF THE CODE OF THE CITY OF FORT COLLINS TO REVISE THE ELECTRIC DEVELOPMENT FEES AND CHARGES WHEREAS, the City Council is empowered and directed by Article XII, Section 6, of the City Charter to fix, establish, maintain and provide for the collection of such rates, fees or charges for utility services furnished by the City as will produce revenues sufficient to pay the costs, expenses and other obligations of the electric utility, as set forth therein; and WHEREAS, the City Council has determined that it is appropriate for new development to contribute its proportionate share of providing capital improvements; and WHEREAS, Section 26-471 of the City Code requires that the electric development fees be reviewed annually by the City Manager and that the fees be presented to the City Council for approval no less than biennially; and WHEREAS, on November 6, 2012, the City Council adopted Ordinance No. 115, 2012, which established the electric development fees now in effect; and WHEREAS, the City Manager and staff have recommended to the City Council the following adjustments to the electric development fees and charges for all invoices paid on or after January 1, 2014; and WHEREAS, based on the foregoing, it is the desire of the City Council to amend Chapter 26 of the City Code to revise electric development fees and charges. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows: Section 1. That Section 26-474 (b) and (c), “Residential electric development fees and charges” of the Code of the City of Fort Collins is hereby amended to read as follows: Sec. 26-474. Residential electric development fees and charges. . . . (b) The ECF shall be the total of the site footage charge, dwelling charge and systems modification charge, to be determined as follows: (1) The site footage charge shall be the combined total of: a. five and thirty-six thousandths cents ($0.05036) per square foot of developed site square footage, excluding the area of dedicated public rights-of-way; and - 2 - b. ten dollars and thirty-five cents ( $10.35) per lineal foot of the developed site abutting a dedicated street or roadway. (2) The dwelling unit charge shall be as follows: a. For a single-family panel size with one-hundred-fifty-amp service (nonelectric heat), one thousand three hundred and ninety-eight dollars ($1,398) per dwelling unit; b. For a single-family panel size with two-hundred-amp service or with one-hundred-fifty-amp service (electric heat), two thousand three hundred twenty-nine dollars ($2,329) per dwelling unit; c. For a multi-family panel size with one-hundred-fifty-amp service (nonelectric heat), nine hundred thirty-three dollars ($933) per dwelling unit; d. For a multi-family panel size with two-hundred-amp service or with one-hundred-fifty-amp service (electric heat), one thousand six hundred thirty-eight dollars ( $1,638) per dwelling unit. (3) A system modifications charge will apply when a new or modified service will require infrastructure in addition to or different from the standard base electrical system model. The differential costs associated with such system modifications will be included in the calculated ECF. (c) A Building Site Charge ("BSC") for any new or modified residential service shall be paid prior to issuance of a building permit for the related construction or modification. The BSC shall be based upon the current rates as of the time of issuance of the building permit. The BSC shall be the total of the secondary service charges, and any additional charges, determined as follows: (1) The secondary service charge shall be as follows: Secondary Service Size Charge (up to 65 feet) Plus Per Foot Charge for Each Foot Over 65 1/0 service $672.00 $4.93/Foot 4/0 service $810.00 $5.68/Foot - 3 - 350 kCM Service $903.00 $7.24/Foot 1/0 Mobile Home Service $524.00 N/A 4/0 Mobile Home Service $640.00 N/A (2) Actual special costs to the utility of installation of secondary service resulting from site conditions shall be included in the BSC as additional charges. Such conditions may include, but are not limited to, frozen or rocky soil, concrete cutting and asphalt replacement. Section 2. That Section 26-475 (b) and (c), “Nonresidential electric development fees and charges” of the Code of the City of Fort Collins is hereby amended to read as follows: Sec. 26-475. Nonresidential electric development fees and charges. . . . (b) The ECF shall be the total of the site footage charge, kVA service charge and systems modification charge, to be determined as follows: (1) The site footage charge shall be the combined total of: a. five and thirty-six thousandths cents ($0.05036) per square foot of developed site square footage, excluding the area of dedicated public rights-of-way; and b. forty-one dollars and twenty-five cents ($41.25) per lineal foot of the developed site abutting a dedicated street or roadway. (2) The kVA service charge shall be determined as follows. a. or customer electric loads served by the utility the kVA service charge shall be: i. Utility owned transformers: the kVA service charge shall be sixty-four dollars and thirty-two cents ($64.32) per kilovolt-amp (kVA) of service load rating. ii. Customer owned transformers: the kVA service charge shall be fifty-three dollars and eighty-seven cents ($53.87) per kilovolt- amp (kVA) of service load rating. - 4 - b. For the utility to receive customer generation in excess of the customer’s electric service provided by the utility, the following KVA service charge will also apply: i. Utility owned transformers: the kVA service charge shall be fifty-three dollars and eighty-seven cents ($53.87) per kilovolt-amp (kVA) of generation service rating in excess of the service load rating as paid per subparagraph (2) a.i. above. Such ratings shall be determined by the Utilities Executive Director. ii. Customer owned transformers: the kVA service charge shall be forty-three dollars and thirty-seven cents ($43.37) per kilovolt-amp (kVA) of generation service rating in excess of the service load rating paid per subparagraph (2) a.ii. above. Such ratings shall be determined by the Utilities Executive Director. (3) A system modifications charge will apply when a new or modified service will require infrastructure in addition to or different from the standard base electrical system model. The differential costs associated with such system modifications will be included in the calculated ECF. (c) A Building Site Charge ("BSC") for extending primary circuitry to the transformer for any new or modified nonresidential service shall be invoiced and paid in the same manner and at the same time as the ECF is invoiced and paid pursuant to Subsection (a) of this Section. The BSC shall be the total of the primary circuit charge, transformer installation charge and any additional charges, determined as follows: (1) The primary circuit charge for service from the utility source to the transformer shall be as follows: a. for single-phase service, a charge of nine dollars and fifty-three cents ($9.53) per foot of primary circuit; b. for three-phase service, a charge of eighteen dollars and thirty- three cents ($18.33) per foot of primary circuit. (2) The transformer installation charge shall be as follows: a. for single-phase service, a charge of one thousand three hundred seventy-two dollars ($1,372) per transformer; b. for three-phase service, a charge of two thousand four hundred forty-two dollars ($2,442) per transformer. (3) Actual special costs to the utility of installation of service resulting from site conditions shall be included in the BSC as additional charges. Such - 5 - conditions may include, but are not limited to, frozen or rocky soil, concrete cutting and asphalt replacement. Section 3. That the amendments to Chapter 26 of the City Code contained herein shall go into effect for all invoices paid on or after January 1, 2014. Introduced, considered favorably on first reading, and ordered published this 15th day of October, A.D. 2013, and to be presented for final passage on the 5th day of November, A.D. 2013. __________________________________ Mayor ATTEST: _______________________________ City Clerk Passed and adopted on final reading on the 5th day of November, A.D. 2013. __________________________________ Mayor ATTEST: _______________________________ City Clerk - 1 - ORDINANCE NO. 148, 2013 OF THE COUNCIL OF THE CITY OF FORT COLLINS AMENDING CHAPTER 26 OF THE CODE OF THE CITY OF FORT COLLINS TO REVISE THE WATER RATES AND CHARGES WHEREAS, the City Council is empowered and directed by Article XII, Section 6, of the Charter of the City of Fort Collins, Colorado, to 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, the Poudre watershed was damaged by the 2012 High Park fire and will result in additional operating and capital costs for treatment and mitigation; and WHEREAS, the Water Board considered the proposed water rates, fees and changes for 2014 at its September 19, 2013, meeting and recommended approval of the rate changes by an unanimous vote; and WHEREAS, the City Manager has recommended to the City Council that the following water use rates be imposed for the billing year beginning January 1, 2014. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows: Section 1. That section 26-118 of the Code of the City of Fort Collins is hereby amended by deleting section (a) (3). 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 construction water use. For residential and nonresidential premises under construction with a planned meter size greater than one (1) inch, no flat unmetered water service will be provided. For residential and nonresidential premises under construction with a planned meter size of one (1) inch or less, the following flat rates will apply per month until the permanent meter is set: ¾-inch construction service, flat charge per month $26.91 - 2 - 1-inch construction service, flat charge per month $51.31 Section 3. That Section 26-127 (a) Residential Rates and that Section 26-127 (b) Nonresidential Rates of the Code of the City of Fort Collins is hereby amended to read as follows: Sec. 26-127. Schedule B, meter rates. (a) Residential Rates. (1) Residential customers with one (1) dwelling unit. a. Base Charge. Residential customers with one (1) dwelling unit shall pay a base monthly charge of fifteen dollars and forty-one cents ($15.41). 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 thirty-eight and six-tenths cents ($2.386) per one thousand (1,000) gallons. For the next six thousand (6,000) gallons used per month, a charge of two dollars and seventy-four and two-tenths cents ($2.742) per one thousand (1,000) gallons. For all additional gallons used per month, a charge of three dollars and fifteen and four-tenths cents ($3.154) 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 thirty-one cents ($16.31). 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 seven and one-tenth cents ($2.071) per one thousand (1,000) gallons. For the next four thousand (4,000) gallons used per month, a charge of two dollars and thirty-eight cents ($ 2.380) per one thousand (1,000) gallons. - 3 - For all additional gallons used per month, a charge of two dollars and seventy-three and nine-tenths cents ($2.739) 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 eleven dollars and seventy-two cents ($11.72) for the first dwelling unit and three dollars and ninety cents ($ 3.90) for the second and each additional dwelling unit. b. Quantity Charge. Residential customers with more than two (2) dwelling units shall pay a monthly quantity charge of one dollar and seventy and three-tenths cents ($1.703) 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 twelve and nine-tenths cents ($2.129) 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 Section 26-127 (c) customers shall pay a base monthly charge based on meter size as follows: Meter Size (inches) Monthly Base Charge ¾ $13.63 1 38.03 1½ 103.41 2 155.85 3 237.70 4 373.17 6 723.91 8 1278.85 - 4 - (2) Quantity charges. Nonresidential customers shall pay a monthly quantity charge of one dollar and eighty-nine and seven-tenths cents ($1.897) per one thousand (1,000) gallons used in the winter season months of November through April. They shall pay a monthly quantity charge of two dollars and thirty-seven cents ($2.370) 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 seventy-two and five-tenth cents ($2.725) 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 forty and eight-tenths cents ($3.408) 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 Section 4. That Section 26-127 (c) High Volume Industrial Rates of the City of Fort Collins Code is hereby amended to read: (c) High Volume Industrial Rates 1. High Volume Industrial Rates apply to any customer with an Average Daily Demand in excess of 2,000,000 gallons per day. The specific rate for any qualifying customer shall be based upon the appropriate peaking factor for that customer in the table below: Peaking Factor Monthly charge per thousand gallons 1.00 – 1.09 $1.490 1.10 – 1.19 $1.540 1.20 – 1.29 $1.590 1.30 – 1.39 $1.640 - 5 - 1.40 – 1.49 $1.690 1.50 – 1.59 $1.740 1.60 – 1.69 $1.790 1.70 – 1.79 $1.840 1.80 – 1.89 $1.890 1.90 – 1.99 $1.950 > 2.00 $2.000 Section 5. That Section 26-129 (b) Fire Hydrant Fees and Charges of the City of Fort Collins Code is hereby amended to read: Sec. 26-129. Schedule D, miscellaneous fees and charges. (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: 6.00 Section 6. That the amendments to the Chapter 26 of the City Code contained herein shall go into effect in for meter readings on or after January 1, 2014. Introduced, considered favorably on first reading, and ordered published this 15th day of October, A.D. 2013, and to be presented for final passage on the 5th day of November, A.D. 2013. __________________________________ Mayor ATTEST: _______________________________ City Clerk - 6 - Passed and adopted on final reading on the 5th day of November, A.D. 2013. __________________________________ Mayor ATTEST: _______________________________ City Clerk - 1 - ORDINANCE NO. 149, 2013 OF THE COUNCIL OF THE CITY OF FORT COLLINS AMENDING CHAPTER 26 OF THE CODE OF THE CITY OF FORT COLLINS TO REVISE THE WATER PLANT INVESTMENT 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 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 26-120 of the City Code provides that the rates and parameters of the water plant investment fees be reviewed annually by the City Manager and shall be presented to City Council for approval no less frequently than biennially; and WHEREAS, on November 1, 2011, the City Council adopted Ordinance No. 139, 2011, which established the plant investment fees that are now in effect; and WHEREAS, the City Council has determined that it is appropriate for new development to contribute its proportionate share of providing capital improvements; and WHEREAS, City staff recommends that existing water plant investment fees be adjusted based on the current replacement cost of the capital facilities that will be needed to serve new development and for future growth related capital expansion; and WHEREAS, the City Manager and City staff have recommended to the City Council the following adjustments to the water plant investment fees to be effective January 1, 2014; and WHEREAS, the Water Board considered the proposed water plant investment fee changes for 2014 at its September 19, 2013, meeting and recommended the approval of the proposed changes by an unanimous vote; and WHEREAS, based on the foregoing, it is the desire of the City Council to amend Chapter 26 of the City Code to revise the water plant investment fees. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows: Section 1. That Section 26-128 of the Code of the City of Fort Collins is hereby amended to read as follows: Sec. 26-128. Schedule C, water plant investment fees. The water plant investment fee prescribed in § 26-120 shall be payable by users both inside and outside of the City, as follows: - 2 - (1) Single-family residential buildings: For the first three-fourths-inch water tap or meter, a fee of seven hundred twenty dollars ($720.) for a single-family residence, plus thirty- two cents ($0.32) for each square foot of lot area. For a single-family residential lot greater than one-half (½) acre in size, the lot size shall be deemed to be one-half (½) acre for the purpose of this fee calculation. For each additional tap or meters larger than three- fourths (¾) inch, the nonresidential rate shall apply. (2) Residential buildings of two (2) or more dwelling units: For each residential building unit, a fee of five hundred forty dollars ($540.), plus twenty-five cents ($0.25) for each square foot of lot area. The fee will provide for one (1) tap per residential building and an adequate number of additional taps to serve common irrigable areas, if any. The number and size of taps shall be determined by the General Manager based upon the criteria established in the Uniform Plumbing Code as amended pursuant to Chapter 5 of the Code. (3) Mobile home parks: For each mobile home park, a fee of five hundred forty dollars ($540.) for each mobile home space in the park, plus twenty-five cents ($0.25) for each square foot of lot area. The fee will provide for one (1) tap per mobile home park. The size of the tap shall be determined by the General Manager based upon the criteria established in the Uniform Plumbing Code as amended pursuant to Chapter 5 of the Code. (4) Hotels, rooming houses, sororities, fraternities and similar uses: The nonresidential rate shall apply. (5) Nonresidential service: a. Service to all nonresidential taps, including but not limited to taps for commercial and industrial service, shall be charged according to the size of the meter pursuant to the following schedule: Meter Size (inches) Nonresidential Plant Investment Fee ¾ $ 7,000 1 19,050 1½ 41,600 2 64,410 - 3 - b. The fee for all meters larger than two (2) inches shall be negotiated with the Utilities Executive Director and shall be based on estimated peak day demand but shall not be less than the charge for a two-inch meter. Section 2. That the amendments to Chapter 26 of the City Code contained herein shall go into effect on January 1, 2014. Introduced and considered favorably on first reading, and ordered published this 15th day of October, A.D. 2013, and to be presented for final passage on the 5th day of November, A.D. 2013. ______________________________ Mayor ATTEST: _____________________________ City Clerk Passed and adopted on final reading on the 5th day of November, A.D. 2013. ______________________________ Mayor ATTEST: _____________________________ City Clerk - 1 - ORDINANCE NO. 150, 2013 OF THE COUNCIL OF THE CITY OF FORT COLLINS AMENDING CHAPTER 26 OF THE CODE OF THE CITY OF FORT COLLINS TO REVISE THE WASTEWATER RATES, FEES AND CHARGES WHEREAS, the City Council is empowered and directed by Article XII, Section 6, of the City Charter to fix, establish, maintain and provide for the collection of such rates, fees or charges for utility services furnished by the City as will produce revenues sufficient to pay the costs, expenses and other obligations of the wastewater utility, as set forth therein; and WHEREAS, City Code Section 26-277 requires that the City Manager analyze the operating and financial records of the wastewater utility during each calendar year and recommend to the City Council the user rate fees or adjustments to be in effect for the following year; and WHEREAS, City Code Section 26-277 further requires that the user rates be revised as necessary to assure equity of the rate system established and to assure that sufficient funds are obtained to adequately operate and maintain the wastewater system; and WHEREAS, the Water Board considered the proposed wastewater rates, fees and changes for 2014 at its September 19, 2013, meeting and recommended approval of the changes by unanimous vote; and WHEREAS, the City Manager has recommended to the City Council that the following wastewater rates be imposed for the billing year beginning January 1, 2014. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows: Section 1. That Section 26-280 of the Code of the City of Fort Collins is hereby amended to read as follows: Sec. 26-280. Service charges established by category. The schedule of rates for each category described in § 26-279 shall be as follows: Category Class of Customer Rate A Single-family residential user (flat rate) $36.29 per month Single-family residential user (metered water use) $16.21per month plus $3.150 per 1,000 gallons of either winter quarter water use or 3,000 gallons, whichever is greater. For single family customers who have not established a winter quarter water use at the service address, a system average of 4,800 gallons per month shall be billed. - 2 - B Duplex (two-family) residential users (flat rate) $49.71 per month Duplex (two-family) residential users (metered water use) $18.42 per month plus $ 2.764 per 1,000 gallons of either winter quarter water use or 4,000 gallons, whichever is greater. For duplex customers who have not established a winter quarter water use at the service address, a system average 7,200 gallons shall be billed. C Multi-family residential user (more than two dwelling units including mobile home parks) and winter quarter based nonresidential user $3.051 per 1,000 gallons of winter quarter water use, plus a base charge of $2.40 per month per dwelling unit served. For multi-family customers who have not established a winter quarter water use at the service address, a system average of 3,400 gallons per living unit shall be billed. D Minor nonresidential user $2.823 per 1,000 gallons of water use, measured sewage flow or winter quarter water use, whichever is applicable, plus the following applicable base charge: Size of water meter (inches) Base charge ¾ or smaller $ 8.15 1 18.81 1½ 36.9037.85 2 64.77 3 103.48 4 163.43 6 716.42 8 827.20 - 3 - E and F Intermediate nonresidential user and Significant industrial user $2.823 per 1,000 gallons of water use, measured wastewater flow or winter quarter water use, whichever is applicable; plus a surcharge of $3.120 per million gallons for each milligram per liter of suspended solids in excess of 235 milligrams per liter; plus a surcharge of $2.599 per million gallons for each milligram per liter of BOD in excess of 265 milligrams per liter or a surcharge of $1.641 per million gallons for each milligram per liter of COD in excess of 400 milligrams per liter, or a surcharge of $ 4.857 per million gallons for each milligram per liter of TOC in excess of 130 milligrams per liter, whichever is applicable. The user shall pay this calculated amount plus the applicable base charge set forth below: Size of water meter (inches) Base charge ¾ or smaller $ 8.15 1 18.81 1½ 36.9037.85 2 64.77 3 103.48 4 163.43 6 716.42 8 827.20 G User outside City limits The rate for users outside the City limits shall be the same as for like service inside the City limits as is specified in Categories A—F and H in this Section H Special with agreement The rate pursuant to a special wastewater services agreement approved by the City Council pursuant to § 26-290 shall be set forth in said agreement. Section 2. That Section 26-282 (a) of the Code of the City of Fort Collins is hereby amended to read as follows: Sec. 26-282. Wastewater strength or industrial surcharges and categories established. - 4 - (a) The schedule of wastewater strength surcharge for customers located either inside or outside the City limits shall be as follows: Parameter Excess over (mg/l) Rate per gallon BOD 265 $ 0.002599 COD 400 0.001641 TOC 130 0.004857 TSS 235 0.003120 Section 3. That the amendments to Chapter 26 of the City Code contained herein shall go into effect on January 1, 2014. Introduced, considered favorably on first reading, and ordered published this 15th day of October, A.D. 2013, and to be presented for final passage on the 5th day of November, A.D. 2013. __________________________________ Mayor ATTEST: _______________________________ City Clerk Passed and adopted on final reading on the 5th day of November, A.D. 2013. __________________________________ Mayor ATTEST: _______________________________ City Clerk - 1 - ORDINANCE NO. 151, 2013 OF THE COUNCIL OF THE CITY OF FORT COLLINS AMENDING CHAPTER 26 OF THE CODE OF THE CITY OF FORT COLLINS TO REVISE SEWER PLANT INVESTMENT FEES WHEREAS, the City Council is empowered and directed by Article XII, Section 6, of the Charter of the City of Fort Collins, Colorado, to fix, establish, maintain and provide for the collection of such rates, fees or charges for utility services furnished by the City as will produce revenues sufficient to pay the costs, expenses and other obligations of the wastewater utility, as set forth therein; and WHEREAS, Section 26-277 of the Code of the City of 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 the user rate fees or adjustments to be in effect for the following year; and WHEREAS, Section 26-283 of the City Code provides that the City Manager review the rates and parameters of the Sewer Plant Investment Fees annually and present them to City Council for approval no less frequently than biennially; and WHEREAS, on November 1, 2011, the City Council adopted Ordinance No. 141, 2011, which established the Sewer Plant Investment fees now in effect; and WHEREAS, City staff recommends that existing Sewer Plant Investment Fees be adjusted based on the current replacement cost of the capital facilities that will be needed to serve new development and for future growth related capital expansion; and WHEREAS, the City Manager and staff have recommended to the City Council the following adjustments to the Sewer Plant Investment Fees to be effective January 1, 2014; and WHEREAS, the Water Board considered the proposed wastewater plant investment fee changes for 2014 at its September 19, 2013, meeting and recommended the approval of the proposed changes by an unanimous vote; and WHEREAS, based on the foregoing, it is the desire of the City Council to amend Chapter 26 of the City Code to revise Sewer Plant Investment Fees. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows: Section 1. That subsections (a) 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, subject to the exceptions and additional requirements provided in this Section, is as follows: - 2 - Category SPIF A $ 3,090 B and C $ 2,470 for each dwelling unit or mobile home space Category Water meter size (inches) Fee D, E, F ¾ 6,550 1 15,440 1½ 29,890 2 58,790 3 and above Calculated on an individual basis based on peak wastewater flow (determined in the manner set forth hereinafter) but not less than the charge for a three two-inch meter G Same as equivalent category, plus any special sanitation district fees. H Determined pursuant to paragraph (d) of this Section. (d) The amount of the plant investment fee and surcharge for each nonresidential surcharged user, users in Category H and any user that is expected to generate greater than its proportionate share of peak day flow at the treatment plant for the applicable category (including both contributed wastewater volume and volume related to infiltration and inflow), shall be calculated utilizing the following formula: SPIF = Site Flow x [Flow$ + (BOD x BOD$) + (TSS x TSS$)] + I&I Flow x [Flow$ + (200 mg/l x BOD$) + (250 mg/l x TSS$)] Where: SPIF = Plant investment fee for Category H users and users discharging wastewater with average concentrations of BOD and/or TSS which exceed those average concentrations which are set forth in § 26-282(b) under Category E-34 Site Flow = The user's proportionate share of peak day flow at the treatment plant based on site flow discharge from user's site I&I Flow = That proportionate share of peak day flow due to infiltration and inflow as allocated to user's site flow discharge Flow$ = $6.26 per gallon (unit cost of facilities attributable to treating wastewater flow) BOD = Average BOD concentration for user category or measured BOD concentration for the user as determined in accordance with Subsection (c) of this Section, but not less than 200 mg/l - 3 - BOD$ = $0.0152 per mg/l (unit cost of facilities attributable to treating BOD) TSS = Average TSS concentration for user category or measured TSS concentration for the user as determined in accordance with Subsection (c) of this Section, but not less than 250 mg/l TSS$ = $0.0122 per mg/l (unit cost of facilities attributable to treating TSS) …. (f) For purposes of this Section, the proportionate share of peak day flow at the treatment plant for users in Categories D, E and F shall be deemed to be: Water meter size (inches) Peak flow (gallons per day) ¾ 530 1 1,250 1½ 2,420 2 4,760 3and greater Calculated on an individual basis based on user's proportionate share of peak day flow at the treatment plant (including both contributed wastewater volume and volume related to infiltration and inflow) but not less than the peak day flow for a two-inch meter …. Section 2. That the amendments to Chapter 26 of the City Code contained herein shall go into effect on January 1, 2014. Introduced, considered favorably on first reading, and ordered published this 15th day of October, A.D. 2013, and to be presented for final passage on the 5th day of November, A.D. 2013. __________________________________ Mayor ATTEST: _______________________________ City Clerk - 4 - Passed and adopted on final reading on the 5th day of November, A.D. 2013. __________________________________ Mayor ATTEST: _______________________________ City Clerk - 1 - ORDINANCE NO. 152, 2013 OF THE COUNCIL OF THE CITY OF FORT COLLINS AMENDING CHAPTER 26 OF THE CODE OF THE CITY OF FORT COLLINS TO REVISE THE STORMWATER PLANT INVESTMENT 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 the storm water utility, as set forth therein; and WHEREAS, the City Council has adopted stormwater basin master plans recommending stormwater facilities that are necessary to provide for the proper drainage and control of flood and surface waters within the City; and WHEREAS, in 1998, the City Council adopted Ordinance No. 168, 1998, determining that all developed lands within the City benefit by the installation of such stormwater facilities; and WHEREAS, existing stormwater rate payers have paid for the design, right-of-way and construction of stormwater facilities identified in the drainage basin master plans that will benefit and be utilized by new development; and WHEREAS, the City Council has determined that new development should pay its proportionate share of the costs of the stormwater infrastructure as it exists at the time of development; and WHEREAS, Section 26-511(a) of the Code requires that the City Manager review the rates and parameters of the Stormwater Plant Investment Fees annually and present them to City Council for approval no less frequently than biennially; and WHEREAS, on November 1, 2011, the City Council adopted Ordinance No. 144, 2011, which established the Stormwater Plant Investment Fees now in effect; and WHEREAS, the City Manager and City staff have recommended to the City Council the following adjustments to the Stormwater Plant Investment Fees to be effective January 1, 2014; and WHEREAS, the Water Board considered the proposed stormwater plant investment fee changes for 2014 at its September 19, 2013, meeting and recommended the approval of the proposed changes by an unanimous vote; and WHEREAS, based on the foregoing, it is the desire of the City Council to amend Chapter 26 of the City Code to revise the amount of the stormwater plant investment fee. - 2 - NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows: Section 1. That Section 26-512(2) of the Code of the City of Fort Collins is hereby amended to read as follows: Sec. 26-512. Stormwater plant investment fees established. . . . (2) Plant investment fee base rate. The stormwater plant investment fee base rate is seven thousand eight hundred seventeen dollars ($7,817) per gross acre of area. … Section 2. That the amendments to Chapter 26 of the City Code contained herein shall go into effect January 1, 2014. Introduced and considered favorably on first reading, and ordered published this 15th day of October, A.D. 2013, and to be presented for final passage on the 5th day of November, A.D. 2013. ______________________________ Mayor ATTEST: _____________________________ City Clerk Passed and adopted on final reading on the 5th day of November, A.D. 2013. ______________________________ Mayor ATTEST: _____________________________ City Clerk Entrance (per kilowatt- amp) Utility Owned Transfromers Customer Owned Transfromers Charge Electric Capacity Fee Per square foot Per lineal front foot Charge per Dwelling Unit $20 $40 $60 $80 $100 $120 $140 $160 2013 Residential Rate Comparison Winter Water Use - 5,000 Gallons Site Charges Secondary Service (Based on 2013 Wastewater Cost of Service Study) Option A - Modified COS Option B - Full COS