HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 01/20/2015 - FIRST READING OF ORDINANCE NO. 012, 2015, AMENDINGAgenda Item 16
Item # 16 Page 1
AGENDA ITEM SUMMARY January 20, 2015
City Council
STAFF
John Phelan, Energy Services Manager
SUBJECT
First Reading of Ordinance No. 012, 2015, Amending the Code of the City of Fort Collins to Modify On-Bill
Utility Financing Terms and Allow for On-Bill Utility Financing of Business Customers.
EXECUTIVE SUMMARY
The purpose of this item is to amend City Code to update and expand the on-bill financing pilot program per
the recommendations reviewed by Council at the October 28, 2014 work session and subsequent November
17, 2014 Finance Committee meeting. The objective of the On-Bill Financing pilot program (also known as the
Home Efficiency Loan Program) is to provide residential utility customers with low-cost financing for energy
efficiency, solar photovoltaic, and water conservation improvements to support the outcomes adopted in City of
Fort Collins policies and plans, such as the Climate Action Plan, Energy Policy and Water Conservation Plan.
The City Code revisions adjust interest rate and fee language and add on-bill financing sections for small
business customers. An update on the administrative elements of the program is provided.
STAFF RECOMMENDATION
Staff recommends adoption of the Ordinance on First Reading.
BACKGROUND / DISCUSSION
The purpose of the On-Bill Financing (OBF) pilot program (also known as the Home Efficiency Loan Program)
is to provide residential utility customers with low-cost financing for energy efficiency, solar photovoltaic, and
water conservation improvements to support the outcomes adopted in City of Fort Collins policies and plans,
such as the Climate Action Plan, Energy Policy and Water Conservation Plan. The OBF program was
established by Ordinance No. 033-2012 which revised language in Chapter 26 of the Municipal Code to enable
Utilities to provide financing and on-bill servicing of loans for energy efficiency, water efficiency and renewable
energy projects.
The OBF program was launched in January 2013, and was reviewed by Council in August 2013 and October
2014 to understand results to date and determine next actions in managing the OBF program’s performance.
City Council’s feedback at the fall 2014 work session indicated general support for the OBF program
improvements and schedule presented by staff.
Existing Program Development and Characteristics
The OBF program was developed collaboratively by Utilities (Energy Services and Customer Finance (billing)),
City Finance, and the City Attorney’s Office with assistance from the consulting firm Harcourt, Brown and
Carey. The program was modeled after successful programs and is most succinctly described as a traditional
loan program which is serviced by Utilities on customer’s monthly bills. The development process included
feedback from the Energy and Water Boards and local stakeholder groups. Customers qualify based on their
bill payment history and credit score, eligible projects are defined by Utilities incentive programs, and the loans
are secured via a deed of trust recorded with Larimer County.
Agenda Item 16
Item # 16 Page 2
The Code changes adopted by Council authorize Utilities to provide financing services to meet the program
deliverables. A key element of the program is that the loan payments are treated like any other element of a
customer’s bill (e.g., electricity, water, wastewater and stormwater). With such treatment, loan payments are
not differentiated from other services. Utilities normal and customary practices for non-payment apply, up to
and including service disconnection. Utilities also has established rights under City Code for collection of any
past due amounts at a property’s time of sale, also known as the “perpetual lien” ordinance.
The program uses pre-existing standard capabilities of the Utilities billing system; no customization of the
system was required (see below for pending updates). Customer qualification and loan closing services are
provided in partnership with a third party financial partner, EnergySmart Partners LLC. EnergySmart Partners
is a subsidiary of the non-profit Funding Partners, a local Fort Collins Community Development Financial
Institution. The interest rate range is defined in Utilities’ residential rate ordinances. The City Finance
Department developed a set of rules and regulations for administrative implementation of the OBF program.
The OBF capital comes from Electric and Water Utility reserve funds, determined by the project type. The
funding is a “balance sheet transaction,” where the funds are accounted for by moving from reserves to
accounts receivable. As such, loan funding is not a typical expenditure or a budget item. Council has
authorized Utilities for a maximum outstanding balance of $800,000 for the loan program. Should demand for
financing reach this limit, Council authorization is required for additional funding.
Program information, including details on customer and project eligibility, qualifications and loan terms can be
found at fcgov.com/financing.
2015 Program Revisions
A team comprised of staff from Utilities Energy Services, Customer Finance (utility billing), City Finance and IT,
with support from the City Attorney’s Office, developed a set of recommendations for revisions to the current
program. The recommendations were reviewed by Council in a work session on October 28, 2014 and
subsequently by the Council Finance Committee on November 17, 2014 (summaries in attachments). The
objectives of these changes are to:
Simplify the application and program processes
Improve the loan terms, and
Revise the structure to address residential rental and business lease properties.
It is important to note several key aspects of the recommended revisions.
The revisions are interrelated, at times, in complex ways. The eligibility and qualification of customers
and measures, the legal aspects of recording and administration, billing system capabilities, energy
savings and loan terms all impact each other.
Actions required to implement the recommendations include those that require Council action and
those that can be implemented administratively through the program rules and regulations.
Per the Council Finance Committee direction, the Program Financial Rules and Regulations note that
the guidance for the annual selection of interest rates is intended to reflect the City’s cost of capital
minus 100-200 basis points.
The recommendation for maximum loan term is 15 years. This value is based primarily on two factors.
First is that 15 years is the norm for benchmark comparison programs representing industry best
practices. The second is that the measure life for mechanical systems (e.g. furnaces and air
conditioning) is typically set at 15 years. However, a longer term, up to 20 years, may be appropriate
for certain measures with very long lifetime. These would include insulation, air sealing and windows.
A longer term would reduce monthly payments, and could qualify additional projects to be bill neutral.
Staff recommends that this topic be included for review when the rental and lease provisions of the
program are implemented in January 2016.
Agenda Item 16
Item # 16 Page 3
Program Revisions
Attribute Revisions and Notes Date
Interest Rates Allowable range from 2.5-10% per proposed rate ordinance
2015 rate at 4% per proposed financial rules and regulations
Feb 2015
Customer
qualification
Minimum six months bill payment history Credit score minimum
of 640
Feb 2015
Fees Fees are cost based for services 2015 fees of $25 for
application, $150 for closing, $11 for recording
Feb 2015
Recording UCC filing recorded with Larimer County Feb 2015
Loan term 5, 7, 10 or 15 years Selected by applicant Feb 2015
Customer
eligibility
Loans for small business customers (owner) April 2015
Rental and
lease
properties
Loans on tenant bills for residential rentals and commercial
leased properties (pending billing system customization)
Jan 2016
FINANCIAL / ECONOMIC IMPACTS
Council authorized a maximum outstanding loan fund of $800,000 through prior BFO offers and subsequent
clarification of balance sheet reserve funding. As of October 15, 2014, $145,000 has been provided to
customers for efficiency projects through the OBF program.
The On-Bill Financing program element will add to the positive economic impact of the Efficiency Works Home
Program. There are currently 24 participating contractors working with the program. Retrofit projects in 2014
represented an investment (by homeowners, supported by rebates) of approximately $1.5M towards improving
existing home efficiency. Utility bill savings from improved homes also results in additional spending on local
goods and services.
ENVIRONMENTAL IMPACTS
The On-Bill Financing Program supports the City’s goals for energy use reduction through efficiency, carbon
emissions reduction from improving the efficiency of the built environment and increasing local renewable
energy production. Homes are seeing 5-50% (15% on average) energy reductions as a result of improvements
made through the Efficiency Works Home Program. On-bill financing is incorporated as an integral offering of
the Efficiency Works Home program materials and marketing.
The Efficiency Works Home Program also directly addresses indoor environmental air quality. The audit,
installation standards and project verification testing specifically address combustion safety of natural gas
appliances and educate homeowners on other aspects of indoor air quality.
BOARD / COMMISSION RECOMMENDATION
At its January 8, 2015 meeting, the Energy Board approved a motion recommending City Council adoption of
the ordinance being presented for first reading on January 20, 2015 amending the City Code to modify on-bill
utility financing terms and allow for on-bill utility financing of business customers.
The Water Board will discuss this topic at its January 15 meeting. Minutes from that discussion will be
provided in the January 20 Read-Before packet.
PUBLIC OUTREACH
A public forum to gather feedback on the recommendations was held October 16, 2014 at the Senior Center.
The forum was coordinated with community stakeholders, including the Community for Sustainable Energy.
Agenda Item 16
Item # 16 Page 4
Second Reading of this Ordinance is scheduled for February 17, 2015, in order to allow for publication and
mailing of notice of this change to out-of-city customers.
ATTACHMENTS
1. Work Session Summary Oct 28, 2014 (PDF)
2. Council Finance Committee minutes, November 17, 2014 (PDF)
3. Energy Board minutes, January 8, 2015 (draft) (PDF)
4. Powerpoint presentation (PDF)
ATTACHMENT 1
Finance Administration
215 N. Mason
2nd Floor
PO Box 580
Fort Collins, CO 80522
970.221.6788
970.221.6782 - fax
fcgov.com
Council Audit & Finance Committee
Minutes
11/17/14
10:00 a.m. to 11:30 p.m.
CIC Room
Council Attendees: Ross Cunniff, Bob Overbeck, Mayor Karen Weitkunat
Staff: Darin Atteberry, Mike Beckstead, Josh Birks, Carrie Daggett,
John Duval, Kevin Gertig, Jeff Mihelich, John Phelan, Lance
Smith, Ellen Switzer, Tom Leeson, John Voss, Katie Wiggett
Others: Kevin Jones, Chamber
Mike Beckstead suggested that the final item on the Council Finance Committee be postponed if time
ran short in order to ensure that the URA meeting could be held. The committee agreed to close the
Council Finance meeting before hearing the last item and reopen the Council Finance meeting if time
allowed.
Approval of the Minutes
Ross Cunniff moved to approve the minutes from the October 20 meeting. Bob Overbeck seconded the
motion. Minutes approved unanimously.
On Bill Financing (OBF) Interest Rates
John Phelan explained that the purpose of this presentation is to follow up on the October 28 Work
Session discussion. Staff is presenting a set of recommendations for revisions to Utilities On-Bill
Financing (aka Home Efficiency Loan Program) and is seeking agreement and director for the following:
1. The allowable range of interest rates which will be included in the rate ordinances updates for
the affected customer classes and service types
2. Guidelines for the selection of an annual interest rate
3. Direction for the setting of 2015 interest rates
Currently, the allowable range of interest rates is set within each utility service type rate ordinance.
The program rules call for an interest rate to be set for the following calendar year by the financial
officer; this rate is intended to be fixed for the calendar year. Individual loan rates are fixed for the term
of the loan. In 2013, the rate ordinance range was “prime plus 2% to 5%”; in 2014, the rate ordinance
range was simplified to 5-10%.
John showed a program comparison chart featuring leading OBF programs. He concluded that the data
primarily demonstrated that the interest rate does not necessarily drive the success of a OBF program,
because successful programs had both low and moderate interest rates. Ross Cunniff asked which of the
programs compared were most similar to the City’s. John answered that the Clean Energy Works
Oregon was the most similar; however, all the programs were very distinct and not directly comparable.
Bob Overbeck suggested adding a column for loan sizes.
ATTACHMENT 2
2
John went on to explain the key considerations for setting interest rates:
1. The Utilities anticipated “cost of capital”
2. Market rates for alternative investments of reserves
3. Possible use of third party capital in the future
4. Other City programs which offer loans (e.g. historic preservation, radon)
5. Participation targets related to Climate Action Plan and Energy Policy
6. Simple and predictable for clarity of outreach and administration
Concerning the “cost of capital” consideration, Mike Beckstead explained that these would likely be
taxable bonds due to the use of the funds; therefore, the current estimate for borrowing is between 5-
5.25%. Loaning at less than the cost of capital would mean the City would bear a portion of the cost of
financing if borrowed funds were used. As an example, for each $10M borrowed and each 100 basis
point spread between borrowing and lending, the cost to the City is approximately $900K. As a further
example, if $10M were borrowed at 5.5% to support home energy improvements as part of Climate
Action Planning and loaned at 1.5% the cost of financing born by the City would be approximately
$3.6M. Bob noted that the City budgets for outcomes and the City may choose to budget money to
cover the cost of a lower interest rate in order to achieve the desired outcome. What Council needs to
determine is how much difference from cost of capital the City would be willing to fund. Bob suggested
encouraging residents to participate by making the rate the market rate minus 100 to 200 basis points.
Ross agreed that this was a possibility, but noted that such a discounted rate would need to be
budgeted for.
Staff recommends establishing the allowable range of interest rates in the rate ordinance at 2.5-10%.
Staff also recommends that the OBF Rules and Regulations reference the key considerations noted
above.
Staff also recommends the City Financial Director set the annual interest for loans over the next year at
the City’s cost of capital less 100 to 200 basis point.
Council Finance agrees with staff’s recommendations.
Options for Street Lighting
Lance Smith noted that Staff has brought forward an ordinance to revise City Code to specify that the
operation and maintenance of the street lighting system is an in kind payment by the Light and Power Fund
in lieu of franchise fees. The ordinance does not change the existing practice or policy. The ordinance was
originally voted down (3-3) on October 28, 2014 but then passed 4-2 on reconsideration that same night.
Council asked that the item be discussed at Council Finance before second reading which is scheduled for
November 18, 2014, but will likely be postponed until December 16.
Lance explained that there are two options for paying for Street Lighting Costs. In Option 1, Utilities would
increase L&P’s PILOT to 7.2% and adjust rates down to be cost neutral to rate payers. In Option 2, Council
passes Ordinance 146, 2014 to codify the intent of the 1986 ordinance and the practice of the past 28 years.
Both Options are common utility practices. Lance pointed out that Option 1 is cost neutral to the General
Fund and the 7.2% PILOT is reasonable compared with other municipalities though high compared with an
investor owned utility.
Excerpt from Unapproved January 8, 2015 Energy Board Minutes
On-Bill Financing City Code Amendments and Program Revisions
(Attachments available upon request)
The Home Efficiency Loan Program ─ consisting of loans for energy efficiency, renewable
energy and water service line repair ─ started January 2013 and was revised January 2014.
Single family and town homes are eligible. Rental properties are eligible; owner makes loan
payments. Monthly payments are listed on customers’ utility bills along with other services.
The existing program bases qualification on bill payment history and credit score; has an interest
rate of 5% or 6%, term of five, seven, or 10 years; is recorded with a Deed of Trust. Project
scope is determined by the customer; most are insulation and air-sealing, furnaces, air
conditioning, windows, and water service line repair.
The revised program consists of code amendments to revise allowable interest rate range (2.5 to
10%), revise fee language to refer to Rules and Regulations, and add loan language to small
business rate classes. Rules and Regulations revisions include extending the allowable term to 15
years, single credit score threshold, and changing to Uniform Commercial Code (UCC) filing for
recording to streamline the application process. Other similar programs with UCC filing have an
extremely low default rate.
Timeline for the revised program: revised residential program parameters in February, loan
program available to small business customers in April, and rental and lease property customer
billing enabled in January 2016. Interest rate proposed for 2015 is 4%. The revised program
features an extended term and lower interest rate.
Discussion Highlights
A board member inquired whether homeowners have to pay off their loans if they sell
their house. Mr. Phelan replied yes.
A board member inquired about renters. Mr. Phelan stated the system doesn’t have the
capability now to transfer from the loan payments from rental to rental.
A board member who applied for and received a loan commented that the application was
extensive, like a mortgage, and didn’t like that it was recorded with a deed of trust against
the owner’s property, which would require payoff if owners want to refinance their
mortgage.
A board member inquired about barriers; the program has had low participation. Mr.
Phelan stated the goals are to complete projects, not necessarily to loan money. A loan is
simply an option; it’s not the only way.
Board Member Marge Moore made a motion for the Energy Board to recommend City
Council adopt the ordinance being presented for first reading on January 20, 2015
amending the City Code to modify on-bill utility financing terms and allow for on-bill
utility financing of business customers.
Board Member Pete O’Neill seconded the motion.
ATTACHMENT 3
Vote on the motion: It passed with 1 abstention and 1 nay. One board member voted no to
support another board member’s concern about not receiving the meeting materials for this
agenda item with adequate time to review the information.
Discussion on motion: A board member commented this is the right direction to head. Another
board member commented that they really like on-bill financing to adjust it and make it more
viable. One board member said they were going to abstain not because they don’t agree with the
revisions, but because they don’t feel comfortable making a decision due to receiving the
information without adequate time to review it before the meeting, especially the edited
document showing changes. The board member stated they don’t want to vote no; they don’t
disagree with it, but stated they can’t vote yes.
Vote on the motion: It passed with 1 abstention and 1 nay
1
On-Bill Financing
City Code Amendments and
Program Revisions
City Council
January 20, 2015
ATTACHMENT 4
2
• Home Efficiency Loan Program
– Started January 2013 and revised January 2014
– Loans for energy efficiency, renewable energy and
water service line repair
– Monthly payments on utility bill along with other
services (electricity, water, wastewater, stormwater)
– Single family and town homes
– Rental properties eligible; loan payments by owner
Existing Program
3
• Loan Application and Terms
– Qualification by bill payment history and credit score
(two tiers, minimum 640 FICO)
– Interest rate of 5% or 6%
– Term of five, seven or ten years
– Recorded with a Deed of Trust
• Projects
– Scope determined by customer
– Most commonly insulation and air-sealing, furnaces,
air-conditioning, windows, water service line repair
Existing Program
4
• Council Code Amendments (Jan 20)
– Revise allowable interest rate range (2.5-10%)
– Revise fee language to refer to Rules and Regulations
– Add loan language to small business rate classes
• Rules and Regulations revisions
– Set 2015 interest rate at 4%
– Extend allowable term to 15 years
– Single credit score threshold
– Change to UCC filing for recording
• Rental and lease property customer billing
– Enabled by customization of billing system
– Consider longer terms for specific measures
Revised Program
5
• March: Revised residential program parameters
• April: Loan program available to small business
customers
• January 2016: Rental and lease property
customer billing enabled
Timeline
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ORDINANCE NO. 012, 2015
OF THE COUNCIL OF THE CITY OF FORT COLLINS
AMENDING THE CODE OF THE CITY OF FORT COLLINS
TO MODIFY ON-BILL UTILITY FINANCING TERMS AND ALLOW
FOR ON-BILL UTILITY FINANCING OF BUSINESS CUSTOMERS
WHEREAS, since January 2013, Fort Collins Utilities has offered a pilot on-bill
financing program to assist residential customers with financing for energy efficiency
upgrades, and water supply line repairs and replacements (the "On-Bill Utility Financing
Program"); and
WHEREAS, the primary purpose of the On-Bill Utility Financing Program (or “Home
Efficiency Loan Program”) is to provide utility customers with low-cost financing for energy
efficiency, solar photovoltaic, and water conservation improvements to support the outcomes
adopted in City of Fort Collins policies and plans, such as the Climate Action Plan, Energy
Policy and Water Conservation Plan; and
WHEREAS, the Program can also benefit Utilities business customers; and
WHEREAS, the Financial Officer has established rules and regulations for the
administration of the Program with respect to the billing and collection of utility fees and
charges, credit and lending standards, and rates and administrative practices per Section 26-720;
of the City Code; and
WHEREAS, City Council previously approved the use of Fort Collins Utilities reserve
funds to provide a maximum outstanding balance of $800,000 for the On-Bill Utility Financing
Program in prior budgets, budget exceptions and balance sheet reserve actions; and
WHEREAS, a key purpose of the pilot On-Bill Utility Financing Program has been to
further support the policy goals of Plan Fort Collins, the Climate Action Plan, Energy Policy
and Water Conservation Plan; and
WHEREAS, the Program has been a valuable addition to Utilities' efficiency and
renewable energy programs, which foster sustainability through energy and water use
reductions, local contractors and investment in the built environment and improved home
comfort, health and safety; and
WHEREAS, the City Council has determined it is desirable to maintain an appropriate
and predictable range of interest rates for loans in the pilot On-Bill Utility Financing Program,
while providing some flexibility for administration of specific loans based on administrative
procedures and standards adopted by the Financial Officer, pursuant to existing authority
under Section 26-720 of the City Code; and
WHEREAS, on January 8, 2015, the Energy Board reviewed and voted to recommend
adoption of the proposed On-Bill Utility Financing program updates to the City Code; and
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WHEREAS, in accordance with the foregoing, the Council is adopting revisions to
Chapter 26 of the City Code, as set forth herein.
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF
FORT COLLINS as follows:
Section 1. That, for the reasons stated above, the City Council hereby finds and
determines that the On-Bill Utility Financing Program as described herein will be for the
betterment of the affected Utilities, and will be beneficial to the rate payers of those Utilities.
Section 2. That Section 26-129 of the Code of the City of Fort Collins is hereby
amended to read as follows:
Sec. 26-129. Schedule D, miscellaneous fees and charges.
. . .
(f) The interest rate for water service-related loans shall be no less than the most
current U.S. prime lending rate at the time of load origination plus two and five-tenths
(2.5) percent and no more than the most current U.S. prime lending rate at the time of
loan origination plus five (5) ten (10.0) percent, per annum, with the interest rate for each
loan to be set annually, based on the City’s cost of capital minus 100 to 200 basis points,
in accordance with the administrative rules and regulations of the Financial Officer
pursuant to § 26-720.
(g) Loan-related fees for water service-related loans shall be set annually, based on
related program costs, in the administrative rules and regulations of the Financial Officer
pursuant to § 26-720.as follows:
(1) For loan application: twenty-five dollars ($25.).
(2) For loan origination: one hundred fifty dollars ($150.).
Section 3. That Section 26-130 of the Code of the City of Fort Collins is hereby
amended to read as follows:
Sec. 26-130. Agreements for special water services.
. . .
(b) Special services in the form of loans for water service-related improvements,
conservation measures or efficiency enhancements shall be documented on forms
determined by the Utilities Executive Director and the Financial Officer. Any such loans
shall be made consistent with the applicable program requirements, credit and risk
standards, fees and interest rate provisions as set forth in this Article and in the
administrative rules and regulations adopted by the Financial Officer pursuant to § 26-
720. Obligations for repayment of any such loans are subject to the provisions of Article
XII of this Chapter.
. . .
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Section 4. That Section 26-289 of the Code of the City of Fort Collins is hereby
amended to read as follows:
Sec. 26-289. Miscellaneous fees and charges.
The following is a schedule of miscellaneous fees and charges:
Description Amount
(1) Connection fees and
service charges
Fees shall be set forth as in Subsection 26-712(b)
(2) Industrial discharge
permits:
a. Administration $76.00 annually
b. Surveillance Determined for each user annually, based on
direct cost plus 15% indirect costs, billed monthly
(3) Laboratory support
services
Determined on a case-by-case basis based on
direct cost plus 15% indirect costs
(4) Materials and labor
provided by City
Determined on a case-by-case basis based on
direct cost plus 15% indirect costs
(5) Charges for disposal at the Fort Collins Regional Sanitary Waste Transfer
Station:
a. Septic tanks,
vaults, privies, portable
toilets:
Generated within
Larimer County
$0.071 per gallon
Generated outside
Larimer County
$0.108 per gallon
b. Recreational
vehicle sanitary waste
holding tanks:
Residential
customers of the City of
Fort Collins Wastewater
Utility
No charge for individual disposal at Transfer
Station
Others $2.35 base fee plus $0.071 per gallon
(6) Interest rate for
wastewater service-
No less than the most current U.S. prime lending
rate at the time of loan origination plus 2% and no
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related loans: more than the most current U.S. prime lending
rate at the time of loan origination plus 5%, per
annum, with the interest rate for each loan To be
set based on the City’s cost of capital minus 100
to 200 basis points in accordance with the
administrative rules and regulations of the
Financial Officer pursuant to § 26-720
(7) Loan-related fees for
wastewater service-
related loans:
To be set based on related program costs in the
administrative rules and regulations of the
Financial Officer pursuant to § 26-720
a. For loan
application:
$25.00
b. For loan
origination:
$150.00
(8) Miscellaneous fees Determined on a case-by-case basis based on
direct costs plus 15% indirect costs
Section 5. That Section 26-290 of the Code of the City of Fort Collins is hereby
amended to read as follows:
Sec. 26-290. Agreements for special wastewater services.
. . .
(b) Special services in the form of loans for wastewater service-related
improvements, conservation measures or efficiency enhancements shall be documented
on forms determined by the Utilities Executive Director and the Financial Officer. Any
such loans shall be made consistent with the applicable program requirements, credit and
risk standards, fees and interest rate provisions as set forth in this Article and in the
administrative rules and regulations adopted by the Financial Officer pursuant to § 26-
720. Obligations for repayment of any such loans are subject to the provisions of Article
XII of this Chapter.
. . .
Section 6. That Section 26-464 of the Code of the City of Fort Collins is hereby
amended to read as follows:
Sec. 26-464. Residential energy service, schedule R.
. . .
(q) Loans. Services in the form of loans for electric service-related improvements,
conservation measures or efficiency enhancements shall be documented on forms
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determined by the Utilities Executive Director and the Financial Officer. Any such loans
shall be made consistent with the applicable program requirements, credit and risk
standards and interest rate provisions as set forth in this Article and in the administrative
rules and regulations adopted by the Financial Officer pursuant to § 26-720. The interest
rate for such loans shall be no less than the most current U.S. prime lending rate at the
time of loan origination plus two and five-tenths (2.5) percent and no more than the most
current U.S. prime lending rate at the time of loan origination plus five (5) ten (10.0)
percent per annum, with the interest rate for each loan to be set annually, based on the
City’s cost of capital minus 100 to 200 basis points, in accordance with the administrative
rules and regulations of the Financial Officer. Obligations for repayment of any such
loans are subject to the provisions of Article XII of this Chapter. Loan-related fees for
electric service-related loans shall be set annually based on related program costs, in the
administrative rules and regulations of the Financial Officer pursuant to § 26-720.
. . .
Section 7. That Section 26-465 of the Code of the City of Fort Collins is hereby
amended to read as follows:
Sec. 26-465. Residential demand service, schedule RD.
. . .
(s) Loans. Special services in the form of loans for electric service-related
improvements, conservation measures or efficiency enhancements shall be documented
on forms determined by the Utilities Executive Director and the Financial Officer. Any
such loans shall be made consistent with the applicable program requirements, credit and
risk standards and interest rate provisions as set forth in this Article and in the
administrative rules and regulations adopted by the Financial Officer pursuant to § 26-
720. The interest rate for such loans shall be no less than the most current U.S. prime
lending rate at the time of loan origination plus two and five-tenths (2.5) percent and no
more than the most current U.S. prime lending rate at the time of loan origination plus
five (5) ten (10.0) percent, per annum, with the interest rate for each loan to be set
annually based on the City’s cost of capital minus 100 to 200 basis points, in accordance
with the administrative rules and regulations of the Financial Officer. Obligations for
repayment of any such loans are subject to the provisions of Article XII of this Chapter.
Loan-related fees for electric service-related loans shall be set annually based on related
program costs, in the administrative rules and regulations of the Financial Officer
pursuant to § 26-720.
Section 8. That Section 26-466 of the Code of the City of Fort Collins is hereby
amended by the addition of new subparagraph (s) to read in its entirety as follows:
Sec. 26-466. General service, schedule GS.
. . .
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(s) Loans. Special services in the form of loans for electric service-related
improvements, conservation measures or efficiency enhancements shall be documented
on forms determined by the Utilities Executive Director and the Financial Officer. Any
such loans shall be made consistent with the applicable program requirements, credit and
risk standards and interest rate provisions as set forth in this Article and in the
administrative rules and regulations adopted by the Financial Officer pursuant to § 26-
720. The interest rate for such loans shall be no less than two and five-tenths (2.5)
percent and no more than ten (10.0) percent, per annum, with the interest rate to be set
annually based on the City’s cost of capital minus 100 to 200 basis points, in the
administrative rules and regulations of the Financial Officer. Obligations for repayment
of any such loans are subject to the provisions of Article XII of this Chapter. Loan-
related fees for electric service-related loans shall be set annually based on related
program costs, in the administrative rules and regulations of the Financial Officer
pursuant to § 26-720.
Section 9. That Section 26-467 of the Code of the City of Fort Collins is hereby
amended by the addition of a new subparagraph (s) to read in its entirety as follows:
Sec. 26-467. General service 25, schedule GS25.
. . .
(s) Loans. Special services in the form of loans for electric service-related
improvements, conservation measures or efficiency enhancements shall be documented
on forms determined by the Utilities Executive Director and the Financial Officer. Any
such loans shall be made consistent with the applicable program requirements, credit and
risk standards and interest rate provisions as set forth in this Article and in the
administrative rules and regulations adopted by the Financial Officer pursuant to § 26-
720. The interest rate for such loans shall be no less than two and five-tenths (2.5) percent
and no more than ten (10.0) percent, per annum, with the interest rate to be set annually,
based on the City’s cost of capital minus 100 to 200 basis points, in the administrative
rules and regulations of the Financial Officer. Obligations for repayment of any such
loans are subject to the provisions of Article XII of this Chapter. Loan-related fees for
electric service-related loans shall be set annually based on related program costs, in the
administrative rules and regulations of the Financial Officer pursuant to § 26-720.
Section 10. That Section 26-712 of the Code of the City of Fort Collins is hereby
amended as follows:
Sec. 26-712. Utility bill and account charges authorized; procedures.
. . .
(b) The following account and miscellaneous fees and charges shall apply to all City
utility customers receiving service pursuant to the terms of Chapter 26, whether within or
outside of the corporate limits of the City, except as otherwise expressly stated:
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Fees and Charges Amount
Service connection fee for account with
one or more metered services (including
nonmetered services for the same account)
$ 19.65
Customer-initiated rate change (after 90
days of new service)
19.65
Service connection fee for account with
only nonmetered services (stormwater,
wastewater, wind, flat commercial
electric, sprinkler clocks, cable towers and
floodlights)
10.00
Service fee to reinstate an account to the
owner/ property manager between tenants
$ 10.00
Manual meter reading charge, per month,
charged to service addresses where
metering equipment without remote
communications capability is used,
requiring an on-site visit to collect use
data for water and/or electric service
11.00
per month
Turn-off notice fee 10.00
Reconnect fee per service for water or
electric following disconnection for
delinquency
20.00
Trip charge for special services requested
by customer during normal service hours
19.65
After-hours reconnect or after-hours trip
charge for special service requested by
customer –
Water (after 5:00 p.m. weekdays or
weekend/ holiday)
85.35
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After-hours reconnect or after-hours trip
charge for special service requested by
customer –
Electric (after 5:00 p.m. weekdays or
weekend/ holiday)
85.35
Return item fee (check, electronic fund
transfer, credit card, etc.)
25.00
Owner-requested repair disconnect fee,
per trip
20.00
Research/document fee per hour 20.00
Interest rate for utility service-related
loans:
No less than the most
current U.S. prime lending
rate at the time of loan
origination plus 2% and no
more than the most current
U.S. prime lending rate at
the time of loan origination
plus 5%, per annum, with
the interest rate for each
loan To be set based on the
City’s cost of capital minus
100 to 200 basis points in
accordance with the
administrative rules and
regulations of the Financial
Officer pursuant to § 26-
720
Loan-related fees for wastewater service-
related loans:
To be set based on related
program costs in the
administrative rules and
regulations of the Financial
Officer pursuant to § 26-
720
a. For loan application: 25.00
b. For loan origination: 150.00
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Introduced, considered favorably on first reading, and ordered published this 20th day of
January, A.D. 2015, and to be presented for final passage on the 17th day of February, A.D.
2015.
Mayor
ATTEST:
City Clerk
Passed and adopted on final reading on the 17th day of February, A.D. 2015.
Mayor
ATTEST:
City Clerk