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HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 11/15/2016 - ITEMS RELATING TO VARIOUS AMENDMENTS TO CHAPTER 26Agenda Item 5 Item # 5 Page 1 AGENDA ITEM SUMMARY November 15, 2016 City Council STAFF Lisa Rosintoski, Utilities Customer Connections Manager Lori Clements, Customer Care & Technology Manager SUBJECT Items Relating to Various Amendments to Chapter 26 of the Code of the City of Fort Collins Pertaining to Utilities - Fall 2016. EXECUTIVE SUMMARY A. Second Reading of Ordinance No. 120, 2016, Amending Chapter 26 of the Code of the City of Fort Collins Pertaining to Water Meter Requirements and Installation. B. Second Reading of Ordinance No. 121, 2016, Amending the Code of the City of Fort Collins to Clarify Utility Accounts, Billing and Collection Practices. These Ordinances, unanimously adopted on First Reading on November 1, 2016, update Chapter 26 of the City Code to address the following:  Identify requirements for location and installation of water service meters  Clarify accounts and billing practices involving billing and collection dates and practices, and services provided to leased premises. A portion of the language approved on First Reading of Ordinance No. 121, 2016, for inclusion in Sec. 26-721 of the City Code has been removed for Second Reading of the Ordinance. The deleted language was originally included on first reading of the Ordinance as part of new language to be added to the Code. However, staff has determined that this language will create an undue administrative burden and difficulty associated with inquiring into and validating whether the cause of a meter failure was a customer or a third party, and to apply a uniform method to calculate back-billing amounts for all customers with meter failures. The removed language appears as a “strike-out” in Section 7 of the Ordinance on Second Reading. STAFF RECOMMENDATION Staff recommends adoption of the Ordinances on Second Reading. ATTACHMENTS 1. First Reading Agenda Item Summary, November 1, 2016 (w/o attachments) (PDF) 2. Ordinance No. 120, 2016 (PDF) Agenda Item 6 Item # 6 Page 1 AGENDA ITEM SUMMARY November 1, 2016 City Council STAFF Lisa Rosintoski, Utilities Customer Connections Manager Lori Clements, Customer Care & Technology Manager SUBJECT Items Relating to Various Amendments to Chapter 26 of the Code of the City of Fort Collins Pertaining to Utilities - Fall 2016. EXECUTIVE SUMMARY A. First Reading of Ordinance No. 120, 2016, Amending Chapter 26 of the Code of the City of Fort Collins Pertaining to Water Meter Requirements and Installation. B. First Reading of Ordinance No. 121, 2016, Amending the Code of the City of Fort Collins to Clarify Utility Accounts, Billing and Collection Practices. The purpose of this item is to update Chapter 26 of the City Code to address the following:  Identify requirements for location and installation of water service meters  Clarify accounts and billing practices involving billing and collection dates and practices, and services provided to leased premises. Starting in 2015, Fort Collins Utilities instituted a semi-annual cycle for City Code amendments in order to manage regular housekeeping and routine updates. This is the second set of ordinances presented under the 2016 City Code review cycle, which is designed to present changes as needed to City Council in the spring and fall of each year. These updates are separate from annual service rate adjustments, which will be brought forward under a separate City Council agenda item. STAFF RECOMMENDATION Staff recommends adoption of the Ordinances on First Reading. BACKGROUND / DISCUSSION In 2015 Fort Collins Utilities instituted, similar to Planning Development and Transportation Service Area, a process to manage revisions to City Code amendments that support business operations and are considered house-keeping and routine in nature. The proposed changes described below represent updates for the fall 2016 City Code review cycle. WATER SERVICES Sec. 26-98 – Water meter requirements and installation  Updated language to clarify the requirement that all water services be metered, location requirements for meters, and the process for installing meters. ATTACHMENT 1 Agenda Item 6 Item # 6 Page 2 Sec. 26-279 – Service charges; categories  Adding language to clarify the winter quarter average calculation for wastewater charges due to system failure or consumption event. CUSTOMER BILLING AND ACCOUNT SERVICES Sec. 26-713 - Due date; delinquency  Updating language to clarify existing processes regarding due dates and delinquency for utility services. Sec. 26-715 - Deposits  Updating language regarding deposits for utility services to clarify existing processes and as follow-through on updated unclaimed intangible property policies. Sec. 26-719 - Service initiation and termination  Adding language regarding utility service initiation and updated language for utility service termination to reflect existing practices. Sec. 26-721 - Billing errors  Updating, removing, and adding language to streamline evaluation of billing error resolution and reconciliation of credits and undercharges (as follow through on updated unclaimed intangible property policies), and creating expedited customer appeal process. Sec. 26-722 - Leased property owners  Adding section clarifying existing practices regarding owners of rental properties and management of utility services ELECTRIC SERVICES Section 26-463 – Electric rates; general service rules, regulations and interconnection standards  Correcting outdated references to “electric service rules, regulations” with “Electric Service Standards”. BOARD / COMMISSION RECOMMENDATION Attached are the minutes from the Energy Board and Water Board presentations. Both boards recommended City Council adoption of the proposed Code revisions. PUBLIC OUTREACH Fort Collins Utilities added a webpage (http://www.fcgov.com/utilities/what-we-do/city-code-updates) to the Utilities website that notices the City Code changes, the timeline, and the details of the proposed changes. The proposed City Code updates were posted to this location prior to availability of the final City Council agenda materials for this meeting. -1- ORDINANCE NO. 120, 2016 OF THE COUNCIL OF THE CITY OF FORT COLLINS AMENDING SECTION 26-98 OF THE CODE OF THE CITY OF FORT COLLINS REGARDING WATER METER REQUIREMENTS AND INSTALLATION WHEREAS, the City owns and operates a Water Utility that provides treated water service to customers; and WHEREAS, Chapter 26 of the City Code regulates and governs the provision of utility services; and WHEREAS, pursuant to Ordinance No. 135, 1997, the City enacted significant revisions to Section 26-98 of the Code of the City of Fort Collins in order to, among other things, enact a schedule by which water meters will be installed for all of the City’s water customers; and WHEREAS, said revisions included a schedule and other provisions in order to satisfy the requirements of the Colorado Water Metering Act (Section 37-97-101 et seq., C.R.S.); and WHEREAS, various provisions of Section 26-98 of the Code of the City of Fort Collins are now no longer applicable; and WHEREAS, removing said provisions from Section 26-98 of the Code of the City of Fort Collins will facilitate the administration of water meter requirements and installation. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows: Section 1. That the City Council hereby makes and adopts the determinations and findings contained in the recitals set forth above. Section 2. That Section 26-98 of the Code of the City of Fort Collins is hereby amended to read as follows: Sec. 26-98. - Water meter requirements and installation. (a) Water meters shall be required for the following services: (1) All water services to residential users connected to the utility pursuant to a water services permit issued on or after July 1, 1990; (2) All water services to nonresidential users; and (3) All water services to residential and nonresidential users outside the corporate City limits. -2- (b) A residential user having water service connected to the utility prior to July 1, 1990, that does not have an installed water meter shall allow the utility to install a water meter for such user's residential water service following notice as provided in this Subsection. The utility shall notify the residential user of this requirement by sending by first class mail a written notice to the user at the address of the affected residential unit. Such notice must be mailed to the residential user at least fourteen (14) days prior to the date stated in the notice by the Utilities Executive Director as the date by which the water meter must be installed. Upon receiving such notice, the residential user shall follow the instructions in the notice by calling the utility to schedule the installation of the water meter by the required date. If the residential user fails to schedule or allow the utility to install the water meter by the required date, the residential user shall be deemed in violation of this Section and subject to the penalty provisions of Subsection (g) of this Section. (c) Water meter installations shall meet the requirements of the utilities standard construction specifications adopted by the Utilities Executive Director. Additionally: (1) Meters shall not be installed in a crawl space. (2) Residential ¾" meters may be installed interior or exterior to the building. (3) All meter installations for meter sizes of 1" or larger shall be installed in an exterior location. (4) Modifications to the installation locations required under this Subsection (c) may be approved by the Utilities Executive Director if the Utilities Executive Director first determines that it is not practicable to meet the requirements of this Subsection (c) due to the physical configuration of the subject property. (d) If, during the installation of a water meter outside of a user's residential or nonresidential unit, it is determined that the water service line does not conform to the provisions of § 26-97, the entire cost of repairing or replacing such water service line shall be borne by the user. (e) All water meters and setting devices shall be of a type, size and design approved by the Utilities Executive Director and furnished by the utility. (f) The water meter is the property of the water utility. The utility shall maintain, test and repair all meters as necessary. A meter may be inspected at any reasonable time by the utility. (g) It shall be unlawful for a user not to have an installed water meter when required to have one pursuant to this Section. Each day that a user fails to have an installed water meter when required to have one pursuant to this Section shall be deemed a separate and distinct violation. Failure of a user to have an installed water meter when required to have -3- one pursuant to this Section shall also constitute a violation that subjects the user to discontinuance of water service in accordance with §26-51. Introduced, considered favorably on first reading, and ordered published this 1st day of November, A.D. 2016, and to be presented for final passage on the 15th day of November, A.D. 2016. __________________________________ Mayor ATTEST: _______________________________ City Clerk Passed and adopted on final reading on the 15th day of November, A.D. 2016. __________________________________ Mayor ATTEST: _______________________________ City Clerk -1- ORDINANCE NO. 121, 2016 OF THE COUNCIL OF THE CITY OF FORT COLLINS AMENDING THE CODE OF THE CITY OF FORT COLLINS TO CLARIFY UTILITY ACCOUNTS, BILLING AND COLLECTION PRACTICES WHEREAS, Chapter 26 of the City Code regulates and governs the provision of utility services; and WHEREAS, Chapter 26, Article XII, of the City Code sets forth definitions and terms for assessing and collecting fees and charges due for delivery of specified utility services; and WHEREAS, such provisions require updating and modification from time to time, for purposes of clarification, correction of errors and to ensure that the Code remains a dynamic document capable of responding to issues identified by staff, customers, and citizens and changing technology for and manner of delivering utility services; and WHEREAS, Fort Collins Utilities staff has identified provisions of Chapter 26 of the City Code where clarification of the service fee collection and bill-correction practices are required to better inform customers and align with current utility practices; and WHEREAS, on September 1, 2016, the Energy Board reviewed and voted unanimously to recommend approval of proposed revisions to Chapter 26 of the City Code to clarify and update utility customer billing and collection practices; and WHEREAS, on September 15, 2016, the Water Board reviewed and voted unanimously to recommend approval of proposed revisions to Chapter 26 of the City Code to clarify and update utility customer billing and collection practices; and WHEREAS, the City Council has determined it is desirable to maintain appropriate utility service billing and collection practices and the recommended clarification of such practices in the City Code, as set forth herein, is in furtherance of the benefits available to utility ratepayers. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows: Section 1. That the City Council hereby makes any and all determinations and findings contained in the recitals set forth above. Section 2. That Section 26-279(c)(2) of the Code of the City of Fort Collins is hereby amended to read as follows: Sec. 26-279. Service charges; categories. . . . -2- (c) The rate determination by category is as follows: . . . (2) If water use is metered, the rate for Categories A and B and the rate for Category C shall be based on winter quarter water use in accordance with the following formula: Cu = VuC Where: Cu = Users charge per billing period Vu = Volume of winter quarter water use C = A charge per unit volume of water used based upon the cost of service per unit volume of normal, domestic-strength wastewater a. The user shall be charged this calculated amount and the applicable base charge as set forth in § 26-280. If any metered water service customer connects to the wastewater utility or makes a change in the use of the premises or substantially expands such premises, the Utilities Executive Director shall make an estimate of the water consumption on such premises during an average winter month based upon a count of plumbing fixtures, consumption of similar customers or other information relevant to such determination; and such estimate, when made, shall be the basis for the wastewater service charge until the actual winter use for the premises can be determined or until an alternative means of determining wastewater volume is established for the user in accordance with this Article. b. If a metered water service customer experiences a temporary mechanical system failure or consumption event that substantially increases the customer’s normal volume of use, without otherwise changing the premises, and afterward presents proof of repairs completed and the customer returns to a normal volume of use, the Utilities Executive Director may adjust the customer’s winter quarter average if impacted by the failure or event. In making that adjustment, the Utilities Executive Director shall use the greater of the rate class average winter quarter average and an estimate of the water consumption at such premises during an average winter month, based on prior consumption at the premises, consumption of similar customers, and other information relevant to such determination, to the extent such information is available. Such estimate, when made, shall be the basis for the wastewater service charge until a corrected winter use for the premises can be determined or until an alternative means of determining wastewater volume is established for the customer under this Article. -3- . . . Section 3. That Section 26-463(c) and (d) of the Code of the City of Fort Collins is hereby amended to read as follows: Sec. 26-463. - Electric rates; general service rules, regulations and interconnection standards. . . . (c) The Utilities Executive Director may adopt minor additions, revisions and corrections to the Electric Service Standards and Interconnection Standards for Generating Facilities Connected to the Fort Collins Distribution System as may, in the judgment of the Utilities Executive Director, be necessary to better conform to good engineering and/or construction standards and practice or to clarify a particular standard. The Utilities Executive Director shall approve only those proposed technical revisions that: . . . (d) The Utilities Executive Director may approve the limited suspension of the Electric Service Standards and Interconnection Standards for Generating Facilities Connected to the Fort Collins Distribution System for the purpose of supporting special research, equipment testing or pilot projects that are under the direction and control of the Fort Collins Utilities. The Utilities Executive Director shall approve limited suspension only for projects that: . . . Section 4. That Section 26-713 of the Code of the City of Fort Collins is hereby amended to read as follows: Sec. 26-713. Due date; delinquency. (a) All fees and charges for the use of utility services are due and payable in full as of the due date specified on the utility bill and become delinquent after that date. Acceptance of partial payment will not be deemed a waiver of the City's right to collect any remaining balance or to exercise any of its authorized remedies for nonpayment. Prior to service disconnection, customers may make arrangements for payment with the approval of the Utilities Executive Director, and as otherwise provided in the administrative rules and regulations adopted by the Financial Officer pursuant to § 26- 720. (b) All charges and fees on utility bills shall be effective as of the date mailed to the last known mailing address of the customer. -4- … (e) The terminated utility service will be restored after the customer has paid in full all delinquent fees and charges, plus collection costs, together with the expenses of discontinuing and restoring service, including costs of after-hours labor and materials and specified fees, as provided in this Article. Section 5. That Section 26-715 of the Code of the City of Fort Collins is hereby amended to read as follows: Sec. 26-715. Deposits. The City may at any time require a deposit if the customer has no history with the utility or has received one (1) or more turn-off notices for delinquency within the past twelve (12) consecutive billing periods. The amount of the deposit shall be two (2) times the estimated monthly bill for the utility services to be furnished to the customer. Any outstanding portion of a deposit not previously returned to a customer will be credited toward the customer’s final service bill. Section 6. That Section 26-719 of the Code of the City of Fort Collins is hereby amended to read as follows: Sec. 26-719. Service initiation and termination at user's request. (a) Requests to initiate any utility service must be made to the utilities at least one (1) business day prior to the customer’s desired initiation date, and additional notice may be required to ensure services are available. Requests are managed as soon as possible during normal business hours and may incur additional fees and charges, as set forth in Section 26-712 of this Code. (b) Requests to terminate a utility service other than through an electronic service request portal must be made to the utility at least one (1) business day prior to the desired discontinuance date. The customer(s) will be liable in any event for utility services consumed until the final meter reading is obtained. The termination notice given by the customer does not relieve the customer in any way from any minimum charges or payments guaranteed under a service contract. Section 7. That Section 26-721 of the Code of the City of Fort Collins is hereby amended to read as follows: Sec. 26-721. Billing errors. (a) When an error has been made in an account, the following shall apply: -5- Overpayment When the utility determines a customer has overpaid for utility service and the overpayment occurred no more than six (6) years before the date the error is made known to the utility, the utility will issue to the customer a credit or a refund, without interest, as reimbursement for the overpayment if each of the following conditions is met: a. documentation evidencing the overpayment is available in utility records or has been provided to the utility by the customer; and b. the utility confirms the accuracy and sufficiency of the documentation based on utility records. Credit balances The utility will make reasonable efforts to refund or credit, without interest, to the customer any amount paid or credited to an account for utility service in excess of applicable charges where there are current billing records acceptable to the utility. Any refund mailed to the last known address of the customer and returned unpaid to the utility or not cashed by the customer within two (2) years of either the date of delivery or mailing of the check, will be retained by the City, and disposed of according to the unclaimed intangible property policies of the utility. Undercharges When the utility determines a current customer has been undercharged for any reason and has underpaid for utility service, the customer shall be billed for the undercharges without interest, except: a. when the undercharges occurred more than six (6) years before the date the utility discovers the error; or b. the undercharges total less than a minimal amount per account or aggregate billing system threshold established by the administrative rules and regulations adopted by the Financial Officer pursuant to § 26-720. Meter failure When the utility determines a meter has failed to register usage within prescribed accuracy limits, the customer will be billed based on the estimated metered consumption for the period during which the meter malfunction occurred, unless the error is caused by vandalism or damage by parties other than the customer, as determined by the Utilities Executive Director. a. in the case of a failed water remote meter, the utility will bill for the difference between the inside meter reading and the remote reading, unless the failure was caused by vandalism or -6- damage by parties other than customer, as determined by the Utilities Executive Director. b. customers who have been underbilled for services received, will be re-billed, at no interest, for the actual or estimated services delivered, based on utility service records or other information acceptable to the utility that verify previous billing statements do not appropriately reflect actual consumption. The number of billing cycles over which collection will occur will be subject to the administrative rules and regulations adopted by the Financial Officer pursuant to § 26-720. . . . (d) Any customer aggrieved by a final determination or decision regarding a billing error correction under this Section may petition the Utilities Executive Director for a hearing by making a written application for such hearing within seven (7) days of the date of such determination or decision. The Utilities Executive Director may appoint a hearing officer or elect to conduct such hearing personally. If a timely request for hearing is made, a hearing concerning the propriety of the determination or decision shall be granted to the aggrieved party and, after notice to the aggrieved party, the hearing shall be held no more than ten (10) calendar days after the filing of the request for hearing. At the hearing, the appellant and the City may be represented by an attorney, may present evidence and may cross-examine witnesses. The decision of the hearing officer or Utilities Executive Director shall be based upon competent evidence. The aggrieved party may file an appeal from such hearing to the City Manager pursuant to §2-541 of this Code. Section 8. That a new Section 26-723 of the Code of the City of Fort Collins is hereby adopted to read as follows: Sec. 26-723. Leased property owners. (a) Owners of rental property served by City utilities are required to select the preferred manner for administering utility services to the rental property during tenant vacancies. (b) Service options include: Leave Utilities On: This option automatically transfers account responsibility into the property owner’s name when a tenant discontinues service. A fee under Section 26-712 of this Code will be assessed to the property owner each time the services revert to the property owner. This option will not prevent discontinuance of service due to any delinquency. -7- Turn Utilities Off: This option discontinues metered utilities at the property when a tenant discontinues service. A service connection fee under Section 26-712 of this Code will be assessed to the new service address account when services are reinstated. Introduced, considered favorably on first reading, and ordered published this 1st day of November, A.D. 2016, and to be presented for final passage on the 15th day of November, A.D. 2016. Mayor ATTEST: City Clerk Passed and adopted on final reading on the 15th day of November, A.D. 2016. Mayor ATTEST: City Clerk