HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 11/18/2014 - FIRST READING OF ORDINANCE NO. 136, 2014, AMENDINGAgenda Item 20
Item # 20 Page 1
AGENDA ITEM SUMMARY November 18, 2014
City Council
STAFF
Steven Catanach, Light & Power Operations Manager
Lance Smith, Strategic Financial Planning Manager
Janet McTague, Utilities Project Engineering Supervisor
SUBJECT
First Reading of Ordinance No. 136, 2014, Amending Chapter 26 of the City Code Regarding Calculation and
Collection of Development Fees Imposed for the Construction of New or Modified Electric Service
Connections. (Option A or B)
EXECUTIVE SUMMARY
The purpose of this item is to revise (Option A) or clarify (Option B) the City Code provisions relating to Electric
Development Fees, in particular, Electric Capacity Fee Charges. The Ordinances clarify that the fees due are
based on the rates effective on the date of final payment, but Council is presented with two options on how the
fees are to be collected.
Option A: Option A is a timing change from current Code requirements. This option requires that 100% of
the Electric Capacity Fee (ECF) be payable prior to the Utility initiating construction of the electric
distribution system. Rates in effect at the time of payment would apply. Currently, only 50% of the fee is
payable prior to construction with the remainder due prior to the electric system being energized. Option A
also addresses how invoices issued prior to the adoption of this ordinance would be addressed.
Option B: Option B does not change the timing of current Code requirements. It requires at least 50% of
the Electric Capacity Fee (ECF) to be paid as a deposit prior to the Utility initiating construction of the
electric distribution system. The remaining ECF (final payment) would be due prior to the system being
energized. Rates in effect at the time of final payment would apply to the entire development. Because
Option B is not a change from current practice or intent of the current code, it would apply to all invoices
issued before or after the adoption.
No changes to the Electric Development Fee amounts are proposed as part of this ordinance. The ordinance
changes the verbiage only. 2015 Electric Development Fee rate amounts are being adjusted in Ordinance No.
155, 2014 which was approved on first reading on October 21, 2014 and is scheduled for second reading on
November 18, 2014.
STAFF RECOMMENDATION
Staff recommends adoption of Option A of the Ordinance on First Reading.
BACKGROUND / DISCUSSION
Light and Power crews construct the electric distribution system to serve all new developments in the city
limits. The developer is responsible for the costs of this construction. The fees to recover the cost are adopted
by Council by Ordinance and are codified in Chapter 26 Sections 26-473 through 26-475 of the City Code.
Agenda Item 20
Item # 20 Page 2
The current Code language requires developers to pay 50% of the fees prior to the Utility beginning
construction of the electric system and the remaining 50% prior to the system being energized. This 50-50
payment has been the practice for at least 40 years. The current Code language also addresses the situation
where the fees have increased between the time they are invoiced and the time they are paid, stating “If there
is an increase in said fees between the time of application for electric service and the actual payment of the
fees, the fee rates in effect at the time of payment shall apply.”
Staff has consistently interpreted this to mean the rates at the time of final payment shall apply; however, it has
recently been interpreted by others to read that rates in effect at the time of the first 50% payment would apply.
Both Option A and B of this ordinance rewrite the Code to avoid this confusion and conflict in the future. In
each option, the fees in effect at the time of final payment would apply.
Two options are being presented for Council consideration. Option A revises the City Code to make the full
Electric Capacity Fee (ECF) payable prior to the Utility scheduling construction of the electric distribution
system to serve the development. This option has the following benefits over the existing language and Option
B:
Option A avoids any possible confusion as to what fee is applicable and is easier for staff to administer.
Xcel Energy, who provides natural gas service throughout the City, has revised its construction policies to
require that the electric system be installed and energized prior to installation of Xcel’s natural gas system.
This change requires that the electric system be energized much sooner than was needed in the past.
Maintaining the 50-50 policy would require the ECF balance to be paid shortly after the first 50% in order to
get the electric system energized prior to Xcel’s work. Because of this recent change in construction
sequence, a single payment prior to construction should not result in any additional burden on the
developers’ cash flow.
Option A eliminates the rare situation where the developer pays the first 50% of development fees, the
electric distribution system is completely built, and then the project is delayed or abandoned. When this
occurs, Light and Power resources are tied up to finance 50% of the costs of the construction until such
time that the project is revived.
Option B is merely a rewrite of current Code to make the language clearer. Under this option, the first 50%
payment would be considered a deposit required before the construction would be scheduled. The ECF
balance would be due prior to the system being energized. The ECF due at time of final payment would be
based on the fees in effect on the date the final payment was made with a credit for any previous payments or
deposits.
Either option would be made effective 10 days after second reading. Option A allows for invoices issued prior
to the effective date, including any currently outstanding invoices, to continue to be paid on a 50-50 basis at
current rates until January 1, 2015. Any unpaid invoices as of that January date would then become 100%
payable prior to construction continuing and/or energization of the electric system at the Electric Development
Fee rates in effect at the time of payment.
Ordinance 136, 2014 was originally discussed by City Council on October 7, 2014. At that time several issues
were of concern to Councilmembers and the Ordinance was postponed to November 18, 2014 to allow for
additional public outreach with the development community.
One concern expressed at the October 7th discussion focused on the timing of these payments and the timing
of construction for the development’s electric system. Each option of the ordinance has been revised to
address this concern. The Light and Power Project Engineering Staff and Field Service Crews are in close
contact with the developers throughout the project. Utility construction is completed according to a detailed
utility construction schedule (typically based on the depth of the Utility) as specified by the Electric
Construction Rules and Regulations. Once payment has been received and all required work by other utilities
and the developer is completed in accordance with the schedule, the Light and Power Utility will commence
construction. Should the work load of Light and Power crews be such that construction cannot begin when all
Agenda Item 20
Item # 20 Page 3
requirements are met and the electric construction is requested, the development projects will be constructed
in the order in which the payments are received. This clarification has been added to each option of the
proposed ordinance.
FINANCIAL / ECONOMIC IMPACTS
Neither option changes the amount of electric development fees due for any project. However, Option A
requires the full ECF to be paid before the electric distribution system can be scheduled for construction.
BOARD / COMMISSION RECOMMENDATION
The Energy Board discussed this topic at its October 2, 2014 Board Meeting. The following motion was
passed unanimously: “Energy Board recommends City Council adopt Option A of the Ordinance being
presented for first reading on October 7, 2014 making changes to the City Code regarding the electric capacity
fee.”
PUBLIC OUTREACH
Out-of-city customers were notified of the proposed ordinance and a public notice was issued in the
Coloradoan. A letter was sent to 25 developers explaining the two options and inviting the developers to an
open house to review the changes and provide feedback. No comments were received on either option.
ATTACHMENTS
1. Energy Board Minutes, October 2, 2014 (PDF)
2. Electric Development Project Timeline (PDF)
3. Electric Contractor Letter (PDF)
4. Powerpoint presentation (PDF)
DRAFT EXCERPT
Energy Board
October 2, 2014 Minutes
1
Fort Collins Utilities Energy Board Minutes
Thursday, October 2, 2014
Energy Board Chairperson City Council Liaison
Greg Behm, 226-6161 Ross Cunniff, 420-7398
Energy Board Vice Chairperson Staff Liaison
Peter O’Neill, 288-4562 Steve Catanach, 416-2622
Roll Call
Board Present Vice Chairperson Peter O’Neill, Board Members John Graham, Stacey Baumgarn,
Phil Friedman, Nick Michell, Michael Doss
Board Absent Chairperson Greg Behm, Board Member Margaret Moore, Peggy Plate.
Staff Present Steve Catanach, John Phelan, Lucinda Smith, Lance Smith, Cyril Vidergar, and
Katherine Martinez
Guests Adam Perry (Platte River Power Authority)
Meeting Convened
Vice Chairperson O’Neill called the meeting to order at 5:30 p.m.
….
Electric Capacity Fee Code Revisions
(Attachments available upon request)
Strategic Financial Planning Manager Lance Smith gave a brief presentation on proposed changes
and clarification of City Code regarding the Electric Capacity Fee, to be presented to City Council
for first reading on October 21. No changes to the fee are proposed; only the ordinance’s verbiage.
There are two fees, the electric capacity fee (to provide service to the development site) based on
the average cost of what it costs us to build out our system, and the building site charge (for
installation of onsite electric service facilities) specific to a project. How the City collects that
charge requires clarification because the current process calls for rates in effect at the time of final
payment to apply to the entire development, which means the rate paid at the time of the 50%
deposit could be different than the rate paid upon completion of the project.
Mr. Catanach gave an example. If the City approves a project in 2013 that costs $200,000, the
developer pays the 50% deposit: $100,000. In 2014, the remaining balance is $100,000 plus the
amount owed because of the 10% rate increase that applies to the total amount; the developer would
owe the City $120,000. Developers have pointed out this ambiguity.
Highlights of the Discussion
A board member inquired whether the City is charging a rate or charging for work done.
ATTACHMENT 1
DRAFT EXCERPT
Energy Board
October 2, 2014 Minutes
2
Mr. Catanach replied they’re charging a rate, and explained calculations cover the cost of
the entire system over a four square-mile area; a development pays less if it’s closer to the
substation than other developments.
A board member inquired what problem are we trying to solve. Mr. Smith replied that it’s
specifically the scenario Mr. Catanach described, and that Option A removes any ambiguity.
A board member inquired if developers have asked about the proposed change. Mr.
Catanach stated the proposed changes happened so quickly they haven’t been able to discuss
it with developers, but past open houses on related topics had low attendance.
Mr. Smith stated staff recommends Option A, which requires 100% of the Electric Capacity
Fee to be payable prior to construction of a development’s electric distribution system. It
should not pose a financial burden on developers because they already have to pay an
accelerated payment due to Xcel Energy’s policy.
A board member inquired about approximate fee costs. Mr. Catanach replied that a multi-
million subdivision would pay $200,000 to $300,000.
A board member inquired if there is a perception that the City is losing revenue the way the
process is set up now. Mr. Catanach replied no, the City doesn’t see a loss of revenue due to
levelized cost of materials. The goal is to remove the ambiguity from the City Code.
A board member inquired about giving developers a choice of Option A or B. Mr. Smith
replied staff would prefer not to deal with that complexity. Option A avoids any confusion
and is more efficient for staff to administer.
A board member commented Option A ensures a streamlined process.
Board Member Graham moved that the Energy Board recommends City Council adopt
Option A of the Ordinance being presented for first reading on October 7, 2014 making
changes to the City Code regarding the electric capacity fee.
Board Member Michell seconded the motion.
Vote on the motion: It passed unanimously.
….
Fort Collins Utilities Light and Power Department
Project Development Timeline
First contact with Light and Power is at the conceptual or preliminary design stage as the
utility works with the developer to determine the availability of power for all types of
projects.
Prior to the final submittal by the developer, Light and Power coordinates with the
developer, other utilities and other departments to identify electric utility location relative
to site constraints and other utilities.
Residential Development Commercial Development
Once a final plat is received, a final design
is completed based on utility coordination
outcome.
Once a final plat, final site plan and
loading information are received, a final
design is completed based on utility
coordination outcome
Billing is initiated at the request of the
developer.
Billing is initiated at the request of the
developer.
Upon receipt of payment, the electric
system in installed per the Electric
Construction Policies, Practices and
Procedures manual. Construction
generally begins within two weeks of
payment.
Upon receipt of payment, the electric
system in installed per the Electric
Construction Policies, Practices and
Procedures manual. Construction
generally begins within two weeks of
payment.
ATTACHMENT 2
Utilities
Light & Power
700 Wood St.
PO Box 580
Fort Collins, CO 80522
970.221.6700
970.221.6619 - fax
utilities@fcgov.com
October 30, 2014
RE: New construction electric billing changes
Dear Electric Contractor:
Fort Collins Utilities is holding an open house 12:30-2 p.m., Wednesday, Nov. 5, Utilities Service
Center Training Room, 700 Wood St., to discuss changes to the current 50/50 new construction
electric billing structure.
You are invited to provide feedback on two options that will be presented to City Council on
Tuesday, Nov. 18:
Option A
The Utility will schedule and commence electric infrastructure construction upon receipt of the
full payment of the development fees and per the Utility Installation Sequence as defined in
Electric Construction Policies Practices and Procedures. If the Utility is not able to commence
construction when requested due to Utility workload backlogs, the Utilities will schedule and
commence the construction of these projects in the same order in which full payment is received.
Option B
The Utility will schedule and commence electric infrastructure construction upon receipt of the
first 50 percent payment of the development fees and per the Utility Installation Sequence as
defined in Electric Construction Policies Practices and Procedures. If the Utility is not able to
commence construction when requested due to Utility workload backlogs, the Utilities will
schedule and commence the construction of these projects in the same order in which the first 50
percent payment is received.
If you have questions or would like to provide feedback and cannot attend the open house, call
Janet McTague at 970-224-6154 or email jmctague@fcgov.com by November 10.
Sincerely,
Janet McTague
Light & Power / Project Engineering Supervisor
ATTACHMENT 3
1
Changes to Electric
Capacity Fee
First Reading
November 18, 2014
ATTACHMENT 4
2
Electric Development Fees
• Electric Development Fees
• Electric Capacity Fee (ECF) - provides service
to the development site
• Building Site Charge (BSC) - installation of on-
site electric service facilities
3
ECF Charge
Current policy in City Code:
• Initially, 50% of ECF due before construction is
scheduled
• ECF balance due before energizing service
What happens when ECF charges change between
initial invoicing and ECF balance is paid?
4
Ordinance Options
• Option A - 100% of ECF due before scheduling
construction
• Option B – maintain 50/50 policy; clarify language
addressing ECF changes in City Code
5
Outreach
• A letter was sent to 25 developers outlining the
two options and inviting them to an open meeting
on 11/5
6
Thank You
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OPTION A
ORDINANCE NO. 136, 2014
OF THE COUNCIL OF THE CITY OF FORT COLLINS
AMENDING CHAPTER 26 OF THE CODE OF THE CITY OF FORT COLLINS
REGARDING CALCULATION AND COLLECTION OF DEVELOPMENT FEES IMPOSED
FOR THE CONSTRUCTION OF NEW OR MODIFIED ELECTRIC SERVICE
CONNECTIONS
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, pursuant to City Code Sections 26-473 through 26-475, the City imposes
development fees, including an Electric Capacity Fee and a Building Site Charge, on parties
developing properties for which new or modified electric service is required; and
WHEREAS, custom and practice of the Electric Utility has been to calculate
development fees based on the rates adopted by City Council in effect at the time the fees are
paid in full; and
WHEREAS, custom and practice of the Electric Utility has also been to collect
development fees in installments that allow a developer to pay a deposit prior to the Utility
constructing the new service, and then pay the remainder of the fees prior to the Utility
energizing the new service; and
WHEREAS, during 2014, Electric Utility staff evaluated the description of the
development fee calculation and collection process in light of questions posed by developers and
changes in industry practices; and
WHEREAS, Electric Utility staff recommends the description of how the development
fees are calculated and collected be clarified in the City Code to better reflect the custom and
practice of the Electric Utility with regard to administration of such fees and scheduling of
associated construction work; and
WHEREAS, Electric Utility staff also recommends updating the manner in which the
City collects development fees for new or modified electric service connections to require full
payment before the City schedules construction of the service; and
WHEREAS, based on the foregoing, it is the desire of the City Council to amend Chapter
26 of the City Code to clarify and update the process for calculation and collection of
development fees imposed for the construction of new or modified electric service connections.
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF
FORT COLLINS as follows:
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Section 1. That Section 26-473(a) of the Code of the City of Fort Collins is hereby
amended to read as follows:
Sec. 26-473. Electric development fees and charges.
(a) Any person desiring to connect to the City's electric distribution system, or to
construct any structure to be served by said electric distribution system, shall pay to the
utility all applicable electric development fees and charges as described in this Division
prior to construction of the electric distribution system to serve said connection, whether
such connection or the property served is inside or outside of the corporate limits of the
City, in addition to any other applicable fees and charges described in this Article.
Notwithstanding the foregoing or any provision of this Article to the contrary, said fees
and charges may be paid over time to the extent that the deferral of all or any portion of
such payment has been approved by the City Council by resolution. Said development
fees shall consist of an Electric Capacity Fee ("ECF") to recover the allocated cost of the
electric distribution system attributable to the new or modified service requested and a
Building Site Charge ("BSC") to recover the cost of installing on-site electric service
facilities to the user's side of the point of delivery. If there is an increase in said fees
between the time of application for electric service and the actual payment of fees, the fee
rates in effect at the time of payment shall apply.
. . .
Section 2. That Section 26-474(a) 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.
(a) An Electric Capacity Fee ("ECF"), shall be paid for service to a single-family or
multi-family residential building as set forth in this Section. The user shall not be
responsible for calculated as set forth in this section and representing the cost to construct
the actual construction of electric distribution system infrastructure for a new or modified
residential service, but shall be required to pay the costs of such construction. The
amount of ECF for a new residential service shall be calculated as of the date of invoicing
by the utility, and shall be based upon the then applicable rates and estimated costs of
construction. No less than fifty (50) percent of the calculated ECF shall be paid prior to
the scheduling of any construction work required to provide said service. If there is an
increase in The ECF shall be determined based upon the most current construction
information and the ECF charges in effect at the time of full payment. between the time
of application for electric service and the actual payment of the ECF, the rates in effect at
the time of payment shall apply. Upon completion of construction required to provide
said new service, any remaining ECF amounts due, including any adjustments to reflect
the then-current rates and actual costs of construction, shall be paid to the utility prior to
the provision of electric service.
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(1) In the event of a customer request for revision to the system requirements
for a new or modified service, construction of infrastructure improvements will
cease until the customer has made payment in full of an updated ECF, including
any increased construction costs associated with the revised system requirements;
such increased amount, if any, shall be paid at the ECF rates in effect at the time it
is paid in full.
(2) Notwithstanding the foregoing, the ECF for any new or modified service
for which an invoice has been issued on or before December 15, 2014, shall be
due in full and must be paid no later than December 31, 2014, in order for
construction of related infrastructure improvements to continue. If payment in
full based upon the ECF charges in effect as of December 15, 2014, is not
received in 2014, no further construction of infrastructure improvements or
energizing of the subject service shall occur until the full ECF is paid based on the
rate in effect at the time of full payment.
. . .
Section 3. That the current Section 26-474(c) of the Code of the City of Fort Collins
is hereby renumbered as Section 26-474(d).
Section 4. That a new Section 26-474(c) of the Code of the City of Fort Collins is
hereby adopted to read as follows:
(c) The utility will schedule and commence construction of a new or modified
electric service upon receipt of payment in full of the associated electric development
fees, and per the Utility Installation Sequence as defined in the Electric Construction
Policies Practices and Procedures. If the utility is unable to commence construction when
requested due to utility workload backlogs, the utility will schedule and commence the
construction of new or modified electric service projects in the same order in which full
payments are received.
Section 5. That Section 26-475(a) 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.
(a) An Electric Capacity Fee ("ECF"), shall be paid for service to any nonresidential
building, structure or other facility, as set forth in this Section. The user shall not be
responsible for calculated as set forth in this section and representing the cost to construct
the actual construction of electric distribution system infrastructure for a new or modified
nonresidential service shall be paid prior to the scheduling of any construction work
required to provide such service. The ECF shall be determined based upon the most
current construction information and the ECF charges in effect at the time of full
payment. , but shall be required to pay the costs of such construction. The customer shall
also be responsible for secondary service installation from the point of delivery to the
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service panel. The amount of ECF for a new residential service shall be calculated as of
the date of invoicing by the utility, and shall be based upon the then applicable rates and
estimated costs of construction. No less than fifty (50) percent of the calculated shall be
paid prior to the scheduling of any construction work required to provide said service. If
there is an increase in between the time of application for electric service and the actual
payment of the ECF, the rates in effect at the time of payment shall apply. Upon
completion of construction required to provide said new service, any remaining ECF
amounts due, including any adjustments to reflect the then-current rates and actual costs
of construction, shall be paid to the utility prior to the provision of electric service. The
Utilities Executive Director of the utility may provide for alternate arrangements for a
single, one-hundred-percent payment of the ECF for a nonresidential project in the event
that the Utilities Executive Director of the utility determines that the utility's costs cannot
be accurately estimated in advance, provided that any amount due shall be secured by a
written commitment and shall be paid prior to the provision of any electric service.
(1) In the event of a customer request for revision to the system requirements
for a new or modified service, construction of infrastructure improvements will
cease until the customer has made payment in full of an updated ECF, including
any increased construction costs associated with the revised system requirements;
such increased amount, if any, shall be paid at the ECF rates in effect at the time it
is paid in full.
(2) Notwithstanding the foregoing, the ECF for any new or modified service
for which an invoice has been issued on or before December 15, 2014, shall be
due in full and must be paid no later than December 31, 2014, in order for
construction of related infrastructure improvements to continue. If payment in
full based upon the ECF charges in effect as of December 15, 2014, is not
received in 2014, no further construction of infrastructure improvements or
energizing of the subject service shall occur until the full ECF is paid based on the
rate in effect at the time of full payment.
. . .
Section 6. That the current Sections 26-475(c) and (d) of the Code of the City of Fort
Collins are hereby renumbered as Sections 26-475(d) and (e), respectively.
Section 7. That a new Section 26-475(c) of the Code of the City of Fort Collins is
hereby adopted to read as follows:
(c) The utility will schedule and commence construction of a new or modified
electric service upon receipt of payment in full of the associated electric development
fees, and per the Utility Installation Sequence as defined in the Electric Construction
Policies Practices and Procedures. If the utility is unable to commence construction when
requested due to utility workload backlogs, the utility will schedule and commence the
construction of new or modified electric service projects in the same order in which full
payments are received.
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Section 8. That the amendments to Chapter 26 of the City Code contained herein
shall go into effect for all invoices paid on or after December 15, 2014.
Introduced, considered favorably on first reading, and ordered published this 18th day of
November, A.D. 2014, and to be presented for final passage on the 2nd day of December, A.D.
2014.
__________________________________
Mayor
ATTEST:
_______________________________
City Clerk
Passed and adopted on final reading on the 2nd day of December, A.D.
__________________________________
Mayor
ATTEST:
_______________________________
City Clerk
- 1 -
OPTION B
ORDINANCE NO. 136, 2014
OF THE COUNCIL OF THE CITY OF FORT COLLINS
AMENDING CHAPTER 26 OF THE CODE OF THE CITY OF FORT COLLINS
REGARDING CALCULATION AND COLLECTION OF DEVELOPMENT FEES IMPOSED
FOR THE CONSTRUCTION OF NEW OR MODIFIED ELECTRIC SERVICE
CONNECTIONS
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, pursuant to City Code Sections 26-473 through 26-475, the City imposes
development fees, including an Electric Capacity Fee and a Building Site Charge, on parties
developing properties for which new or modified electric service is required; and
WHEREAS, custom and practice of the Electric Utility has been to calculate
development fees based on the rates adopted by City Council in effect at the time the fees are
paid in full; and
WHEREAS, custom and practice of the Electric Utility has also been to collect
development fees in installments that allow a developer to pay a deposit prior to the Utility
constructing the new service, and then pay the remainder of the fees prior to the Utility
energizing the new service; and
WHEREAS, during 2014, Electric Utility staff evaluated the description of the
development fee calculation and collection process in light of questions posed by developers and
changes in industry practices; and
WHEREAS, Electric Utility staff recommends the description of how the development
fees are calculated and collected be clarified in the City Code to better reflect the custom and
practice of the Electric Utility with regard to administration of such fees and scheduling of
associated construction work; and
WHEREAS, based on the foregoing, it is the desire of the City Council to amend Chapter
26 of the City Code to clarify the process for calculation and collection of development fees
imposed for the construction of new or modified electric service connections.
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF
FORT COLLINS as follows:
Section 1. That Section 26-473(a) of the Code of the City of Fort Collins is hereby
amended to read as follows:
Sec. 26-473. Electric development fees and charges.
- 2 -
(a) Any person desiring to connect to the City's electric distribution system, or to
construct any structure to be served by said electric distribution system, shall pay to the utility all
applicable electric development fees and charges as described in this Division prior to energizing
the electric distribution system to serve said connection, whether such connection or the property
served is inside or outside of the corporate limits of the City, in addition to any other applicable
fees and charges described in this Article. Notwithstanding the foregoing or any provision of this
Article to the contrary, said fees and charges may be paid over time to the extent that the deferral
of all or any portion of such payment has been approved by the City Council by resolution. Said
development fees shall consist of an Electric Capacity Fee ("ECF") to recover the allocated cost
of the electric distribution system attributable to the new or modified service requested and a
Building Site Charge ("BSC") to recover the cost of installing on-site electric service facilities to
the user's side of the point of delivery. If there is an increase in said fees between the time of
application for electric service and the actual payment of fees, the fee rates in effect at the time
of payment shall apply.
. . .
Section 2. That Section 26-474(a) 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.
(a) An Electric Capacity Fee ("ECF"), shall be paid for service to a single-family or
multi-family residential building as set forth in this Section. The user shall not be
responsible for calculated as set forth below in this section and representing the cost to
construct the actual construction of electric distribution system infrastructure for a new or
modified residential service shall be paid prior to the utility energizing the subject
service., but shall be required to pay the costs of such construction. The amount of ECF
for a new residential service shall be calculated as of the date of invoicing by the utility,
and shall be based upon the then applicable rates and estimated costs of construction. No
less than fifty (50) percent of the calculated The ECF shall be determined based upon the
most current construction information and the ECF charges in effect at the time the ECF
invoice is issued. A non-refundable deposit of at least fifty (50) percent of the ECF shall
be paid to the City paid prior to the utility scheduling of any construction work required
to provide said service. If there is an increase in the ECF between the time of application
for electric service and the actual payment of the ECF, the rates in effect at the time of
payment shall apply. Upon completion of construction required to provide said new
service, any remaining ECF amounts due, including any adjustments to reflect the then-
current rates, and actual costs of construction, less any prior deposit amounts paid, shall
be paid to the utility prior to the provision of electric service electric distribution system
being energized. In the event of a customer request for revision to the system
requirements for a new or modified service, construction of infrastructure improvements
will cease until the customer has made payment in full an updated ECF, including any
increased construction costs associated with the revised system requirements; such
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increased amount, if any, shall be paid at the ECF rates in effect at the time it is paid in
full.
Section 3. That the current Section 26-474(c) of the Code of the City of Fort Collins
is hereby renumbered as Section 26-474(d).
Section 4. That a new Section 26-474(c) of the Code of the City of Fort Collins is
hereby adopted to read as follows:
(c) The utility will schedule and commence construction of a new or modified
electric service upon receipt of a deposit of at least 50% the associated electric
development fees and per the Utility Installation Sequence as defined in Electric
Construction Policies Practices and Procedures. If the utility is unable to commence
construction when requested due to utility workload backlogs, the utility will schedule
and commence the construction of new or modified electric service projects in the same
order in which the associated deposit payments are received.
Section 5. That Section 26-475(a) 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.
(a) An Electric Capacity Fee ("ECF") shall be paid for service to any nonresidential
building, structure or other facility, as set forth in this Section. The user shall not be
responsible for calculated as set forth below in this section and representing the cost to
construct the actual construction of electric distribution system infrastructure for a new or
modified nonresidential service shall be paid prior to the utility energizing the service.
The ECF shall be determined based upon the most current construction information and
the ECF charges in effect at the time the ECF invoice is issued., but shall be required to
pay the costs of such construction. The customer shall also be responsible for secondary
service installation from the point of delivery to the service panel. The amount of ECF for
a new nonresidential service shall be calculated as of the date of invoicing by the utility,
and shall be based upon the then applicable rates and estimated costs of construction. No
less than fifty (50) percent of the calculated A non-refundable deposit of at least fifty (50)
percent of the ECF shall be paid to the City prior to the utility scheduling of any
construction work required to provide said service. If there is an increase in the ECF
between the time of application for electric service and the actual payment of the ECF,
the rates in effect at the time of payment shall apply. Upon completion of construction
required to provide said new service, aAny remaining ECF amounts due, including any
adjustments to reflect the then-current rates and actual costs of construction, less any
prior deposit amounts paid, shall be paid to the utility prior to the provision of electric
service electric distribution system being energized. The Utilities Executive Director of
the utility may provide for alternate arrangements for a single, one-hundred-percent
payment of the ECF for a nonresidential project in the event that the Utilities Executive
Director of the utility determines that the utility's costs cannot be accurately estimated in
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advance, provided that any amount due shall be secured by a written commitment and
shall be paid prior to the provision of any electric service. In the event of a customer
request for revision to the system requirements for a new or modified service,
construction of infrastructure improvements will cease until the customer has made
payment in full of an updated ECF, including any increased construction costs associated
with the revised system requirements; such increased amount, if any, shall be paid at the
ECF rates in effect at the time it is paid in full.
Section 6. That the current Sections 26-475(c) and (d) of the Code of the City of Fort
Collins are hereby renumbered as Sections 26-475(d) and (e), respectively.
Section 7. That a new Section 26-475(c) of the Code of the City of Fort Collins is
hereby adopted to read as follows:
(c) The utility will schedule and commence construction of a new or modified electric
service upon receipt of a deposit of at least 50% the associated electric development fees
and per the Utility Installation Sequence as defined in Electric Construction Policies
Practices and Procedures. If the utility is unable to commence construction when
requested due to utility workload backlogs, the utility will schedule and commence the
construction of new or modified electric service projects in the same order in which the
associated deposit payments are received.
Section 8. That the amendments to Chapter 26 of the City Code contained herein
shall go into effect for all invoices paid on or after December 15, 2014.
Introduced, considered favorably on first reading, and ordered published this 18th day of
November, A.D. 2014, and to be presented for final passage on the 2nd day of December, A.D.
2014.
__________________________________
Mayor
ATTEST:
_______________________________
City Clerk
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Passed and adopted on final reading on the 2nd day of December, A.D. 2014.
__________________________________
Mayor
ATTEST:
_______________________________
City Clerk