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Home My WebLink AboutCOUNCIL - AGENDA ITEM - 11/03/2015 - ITEMS RELATING TO UTILITY RATES, FEES AND CHARGESAgenda Item 18 Item # 18 Page 1 AGENDA ITEM SUMMARY November 3, 2015 City Council STAFF Randy Reuscher, Utility Rate Analyst Lance Smith, Strategic Financial Planning Manager SUBJECT Items Relating to Utility Rates, Fees and Charges for 2016. EXECUTIVE SUMMARY A. First Reading of Ordinance No. 140, 2015, Amending Chapter 26 of the Code of the City of Fort Collins to Revise Electric Rates, Fees and Charges. B. First Reading of Ordinance No. 141, 2015, Amending Chapter 26 of the Code of the City of Fort Collins Regarding Calculation and Collection of Development Fees Imposed for New or Modified Electric Service Connections. C. First Reading of Ordinance No. 142, 2015, Amending Chapter 26 of the Code of the City of Fort Collins to Revise Water Rates, Fees and Charges. D. First Reading of Ordinance No. 143, 2015, Amending Chapter 26 of the Code of the City of Fort Collins to Revise Water Plant Investment Fees. E. First Reading of Ordinance No. 144, 2015, Amending Chapter 26 of the Code of the City of Fort Collins to Revise Wastewater Rates, Fees and Charges. (Option A or Option B) F. First Reading of Ordinance No. 145, 2015, Amending Chapter 26 of the Code of the City of Fort Collins to Revise Sewer Plant Investment Fees. G. First Reading of Ordinance No. 146, 2015, Amending Chapter 26 of the Code of the City of Fort Collins to Revise Stormwater Plant Investment Fees. The purpose of this item is for Council to consider adopting rate changes for electric and wastewater rates, and electric capacity fees, water plant investment fees (PIFs), wastewater PIFs and stormwater PIFs, along with other Code clarifications and formatting changes. Agenda Item 18 Item # 18 Page 2 STAFF RECOMMENDATION Staff recommends adoption of the Ordinances on First Reading. Staff recommends adoption of Option A for Ordinance No. 144, 2015, revising wastewater rates. BACKGROUND / DISCUSSION Proposed Monthly Utility Rate Adjustments The recommended 2016 rate changes are consistent with the City Manager’s Recommended 2015-16 Budget. Individual customer charges will be the same for all electric customers and vary by rate class for wastewater rates. All proposed rates would be effective for meter readings on or after January 1, 2016. Proposed Adjustment of Development Fee Components of Rates, Fees, and Charges Water Plant Investment Fees, Wastewater Plant Investment Fees and Stormwater Plant Investment Fees (collectively, PIFs), are charged to new development desiring to connect to the City’s water and wastewater utility facilities, and that will benefit from the City’s stormwater facilities. City Code provisions establishing these PIFs currently refer to “growth-related capital expansion costs” of the operational utility facilities, but do not specifically include “growth-related” capital costs for Utilities’ administrative facilities that are also part of the overall cost of and required in providing these utility services to new development. The proposed changes include Code language that specifically addresses growth-related capital costs of Utilities’ administrative facilities in the various PIFs, which overall had minimal impacts to the proposed fees. The proposed increases include these growth-related capital costs for 2016 for water, wastewater, and stormwater PIFs. PIFs are impact fees calculated in accordance with legal standards using models that are designed to defray the cost of each particular utility service rendered, reflect amounts reasonably related to the overall cost of the services, and establish fees not unreasonably in excess of such cost. The models are used to calculate these PIFs at an appropriate level that is no greater than necessary to defray the quantified and reasonable projected impacts on capital facilities, caused by new development. Other Proposed Modifications to Chapter 26 of the City Code The Ordinances modify the formatting of provisions establishing the rates, fees and charges in an effort to make year-to-year changes to rate ordinances easier and improve the readability of Code. These changes put the specific rates, fees and charges that are adjusted annually in table formats, so future ordinances will only change the values in the tables, unless other code modifications are proposed. Electric Rates and Electric Capacity Fee (ECF) Electric Rates - First Reading of Ordinance No. 140, 2015, Amending Chapter 26 of the City Code to Revise Electric Rates, Fees and Charges. Electric rates are proposed to increase 3.2% at the retail level in 2016, and are a pass-through of the wholesale rate increase from Platte River Power Authority, which will increase the annual wholesale expense by approximately $3.9 million. The increase is slightly larger than the 1.9% anticipated estimate in the 2015-16 biennial budget. Drivers for the wholesale increase noted by Platte River Power Authority include higher fuel costs, lower surplus sales, and higher expenses related to the expansion of existing energy efficiency programs. The wholesale increase will be applied evenly to both the energy and demand components, and the percentage increase will be the same across the summer and non-summer months. Agenda Item 18 Item # 18 Page 3 No additional increase is planned for distribution facilities’ costs; however, such an increase may be necessary in the 2017-18 budget cycle. More information will be available as the 10-year capital improvement plan is developed and asset management is fully implemented in this utility. The impact at the retail level would be the same percentage change for all electric rate classes. The cost of service study was last updated in 2014 and therefore no variance in the increase by rate class is needed for 2016. The cost of service will be updated again in 2016. An average residential customer would see an increase in their monthly electric bill of $2.28 per month during the summer months, while a small commercial customer may see an increase of $6.57 per month, as shown in the examples below. Current Estimated $ % Rate Class Consumption 2015 2016 Increase Increase Residential Summer - 700 kWh / month $71.40 $73.69 $2.28 3.2% Small Commercial Summer - 2000 kWh / month $205.22 $211.79 $6.57 3.2% Electric Bill Impacts Electric Capacity Fee (ECF) - First Reading of Ordinance No. 141, 2015, Amending Chapter 26 of the City Code to Revise Electric Capacity Fees. The electric capacity fees are updated on an annual basis and are a one-time charge for development within the electric service territory. A typical residential lot developed in 2016 would not see a fee increase, while a typical commercial development fee would increase by 3.3%, as shown in the example below. The commercial increase is due mostly to higher costs related to substation transformers and the allocation associated with new development, as well as increased duct bank costs for commercial development. These increases were partially offset by lower costs for fault indicators, conduit and cable. There are fluctuations in some of the individual charges for a residential development as well, but overall no change over the 2015 fee for a typical residential lot. Current 2015 Proposed 2016 $ Change % Change $3,554 $3,554 $0 0.0% Current 2015 Proposed 2016 $ Change % Change $32,624 $33,695 $1,070 3.3% Residential Single Family Lot Criteria - 9,200 square feet, 83 feet of street frontage, 150 amp service, 4/0 secondary service Commercial Development Criteria -82,000 sq feet, 190 ft of street frontage, 250 ft primary service, 600 amps, 208 Volt, 3-phase, 1 transformer Water Rates and Water Plant Investment Fee Water Rates - First Reading of Ordinance No. 142, 2015, Amending Chapter 26 of the City Code to Revise Water Rates, Fees, and Charges. No rate increase is being proposed for monthly water rates in 2016. This ordinance modifies the formatting of provisions establishing the rates, fees and charges in an effort to make year-to-year changes to rate ordinances easier and improve the readability of code. These changes put the specific rates, fees and charges that are adjusted annually in table formats, so future ordinances will only change the values in the tables, unless other code modifications are proposed. Agenda Item 18 Item # 18 Page 4 Water Plant Investment Fee (PIF) - First Reading of Ordinance No. 143, 2015, Amending Chapter 26 of the City Code to Revise Water Plant Investment Fees. The water PIF model is updated every two years and the 2014 model was recently updated for 2016. The overall gallon per day (gpd) charge increased from $4.43/gpd to $4.66/gpd. The increase is due to additional capital projects completed over the past few years, as well as increased system valuation. The specific impacts to customers for each rate class are reduced due to lower base water usage during the winter months and lower peak water use during the summer months, as compared to previous years. The fee for a residential single family customer would increase by $25 over the 2015 fee, while the duplex and multi- family fee would decrease slightly, as shown in the examples below. The fees for commercial customers would increase between 1.5 and 3.5%, according to the requested tap size, as shown in the examples below. Rate Class Criteria 2015 2016 $ Change % Change Residential Single Family 8600 sq ft $3,499 $3,524 $25 0.7% Duplex & Multi-family 3435 sq ft $1,390 $1,379 ($11) -0.8% Commercial 3/4 Inch by tap size $7,000 $7,180 $180 2.6% 1 Inch by tap size $19,050 $19,710 $660 3.5% 1 1/2 Inch by tap size $41,600 $42,220 $620 1.5% 2 Inch by tap size $64,410 $66,680 $2,270 3.5% Water Plant Investment Fee (WPIF) Wastewater Rates and Wastewater Plant Investment Fee Wastewater Rates - First Reading of Ordinance No. 144, 2015, Amending Chapter 26 of the City Code to Revise Wastewater Rates, Fees, and Charges. (Option A or Option B) Staff is recommending a 3% overall increase to the wastewater fund revenue in 2016, which could be collected in one of the two options below. Staff is recommending Option A. Capital project costs at the wastewater treatment plant related to regulatory requirements are the main driver for the overall increase. This increase is the same amount approved in the 2015-16 biennial budget. Option A blends the three residential class increases together for a 2.5% increase to each residential class, while the commercial class would increase by 4.5%. Option B adjusts each rate class according the outputs from the cost of service model. The cost of service model was updated in 2015 and rather than applying the 3% overall increase to all rate classes, different percent changes are proposed, while keeping the overall increase to 3% for the wastewater fund. Staff is recommending Option A, shown in the table below, due to some volatility in the wastewater cost of service model outputs in recent years. In the 2013 model, rates were lowered for both duplex and commercial customers for 2014. This is related to fluctuating consumption by rate class and budget levels from year-to-year, versus the exact outputs from the model, as set forth in Option B, for 2016. Option A includes a smoothing of the residential rate class adjustments at a 2.5% increase for 2016, while commercial customers would see a 4.5% increase, as shown in the examples below. Agenda Item 18 Item # 18 Page 5 Rate Class Option A: Smoothed Option B: COS Residential Single Family 2.5% 1.3% Duplex 2.5% 2.2% Multi-family (per unit) 2.5% 3.6% Commercial 4.5% 6.3% Wastewater Rates The impacts to a single family customer in 2016 would be approximately $0.86 per month under the proposed Option A, while a commercial customer with a 2 inch connection may see a $10.12 increase per month, as shown in the examples below. Current Estimated $ % Rate Class Consumption 2015 2016 Increase Increase Winter Quarter Average (WQA) 4,800 gallons / month 2 inch meter 50,000 gallons / month Wastewater Bill Impacts Residential $34.21 $35.07 $0.86 2.5% Commercial $224.84 $234.96 $10.12 4.5% Wastewater Plant Investment Fee (PIF) - First Reading of Ordinance No. 145, 2015, Amending Chapter 26 of the City Code to Revise Wastewater Plant Investment Fees. The wastewater PIF model is updated every two years and the 2014 model was recently been updated for 2016. The PIF charge on a per gallon per day (gpd) basis increased from $12.35/gpd to $13.98/gpd due to increased system valuation related to the collection system, as well as the completion of capital projects at the treatment plant that raise the value for a customer to buy-in. The fee for a residential single family customer would increase by $410 in 2016, while the duplex and multi- family fee would increase by $50 per connection, as shown below in the following illustrative examples. The fees for commercial customers would increase between $350 and $3,520, depending on the corresponding water meter size requested, as shown in the examples below. Rate Class 2015 Fee 2016 Fee $ Change % Change Residential Single Family $3,090 $3,500 $410 13% Duplex & Multi-family $2,470 $2,520 $50 2% Commercial 3/4 Inch $6,550 $7,130 $580 9% 1 Inch $15,440 $17,200 $1,760 11% 1 1/2 Inch $29,890 $33,410 $3,520 12% 2 Inch $58,790 $59,140 $350 1% Wastewater Plant Investment Fee The most recent peak day flows decreased for most rate classes, other than residential single family customers, as compared to 2015 (shown below). Therefore, the change to the fee from $12.35 to $13.98 per Agenda Item 18 Item # 18 Page 6 gpd collected for a wastewater connection is partially offset for those classes with flows that decreased, as compared to what they would have paid in 2016 if flows remained constant. The residential single family class peak day flows remained constant at 250 gpd, while other classes decreased, with duplex and multi-family dropping by 10% and commercial 2 inch flow dropping by 11%. Rate Class 2015 Peak Volume (gpd) 2016 Peak Volume (gpd) GPD Change % Change Residential Single Family 250 250 0 0% Duplex & Multi-family 200 180 -20 -10% Commercial 3/4 Inch 530 510 -20 -4% 1 Inch 1,250 1,230 -20 -2% 1 1/2 Inch 2,420 2,390 -30 -1% 2 Inch 4,760 4,230 -530 -11% Wastewater Peak Volume Stormwater Rates and Stormwater Plant Investment Fee Stormwater Rates - No rate increase is being proposed for monthly stormwater rates in 2016. Stormwater Plant Investment Fee (PIF) - First Reading of Ordinance No. 146, 2015, Amending Chapter 26 of the City Code to Revise Stormwater Plant Investment Fees. The stormwater PIF model is updated every two years. Staff recently updated the model for 2016 and is recommending a 5.1% increase to this one-time fee for new development within the service territory. The increased “per acre charge” would change from $7,817 to $8,217 and is related to increased system equity pertaining to investments made in stormwater capital projects in recent years and increased system replacement costs due to inflationary factors that raise the value of the stormwater system. The amount paid by a builder/developer is calculated by taking the gross acres developed (plus common area and right-of-way allocation), times the base rate, times the runoff coefficient for each specific site developed. As shown in the examples below, the impact to the 2016 increase for a typical single family construction project would increase by $68 over the 2015 fee amount. A typical commercial development would increase by $320 for a one acre lot, as compared to the 2015 fee. Rate Class 2015 2016 $ Change % Change Gross Area Developed (sq ft) 8,600 8,600 Common Area Allocation (sq ft) 6,156 6,156 Base Rate (per acre*) $7,817 $8,217 Runoff Coefficient 0.5 0.5 Total Fee $1,324 $1,392 $68 5.1% Gross Area Developed (sq ft) 43,560 43,560 Base Rate (per acre*) $7,817 $8,217 Runoff Coefficient 0.8 0.8 Total Fee $6,254 $6,574 $320 5.1% * One acre equals 43,560 sq ft Commercial Stormwater Plant Investment Fee Residential Agenda Item 18 Item # 18 Page 7 CITY FINANCIAL IMPACTS Summary Utility Bill Comparisons A typical residential customer, based on average use in a summer month, could expect to see an increase of just more than $3.00 per month on their total utility bill for all four services. As there are no changes to water or stormwater rates in 2016, the impact would be mostly from the electric rate increase, with the remaining portion related to wastewater increases. The overall impact during a summer month would be less than 2% for a residential customer, on average. Current Estimated $ % 2015 2016 Increase Increase Electric 700 kWh/mo Stormwater 8,600 sq.ft. lot, light runoff Wastewater 4,800 gal/mo WQA Water 15,000 gal/mo Total Estimated Average Monthly Utility Bill $178.04 $181.18 $3.14 1.8% $58.16 $58.16 $0.00 0.0% $14.26 $14.26 $0.00 0.0% $34.21 $35.07 $0.86 2.5% Typical Residential Customer – Monthly Utility Bill (Summer Month) $71.40 $73.69 $2.28 3.2% Summary Plant Investment Fee Comparisons The summary table below shows the overall impacts for a typical residential development. The fees in 2016 for all four services would increase by approximately $500, or 4.4%. 2015 2016 $ Change % Change Electric Capacity Fee $3,554 $3,554 $0 0.0% Water Plant Investment Fee $3,499 $3,524 $25 0.7% Wastewater Plant Investment Fee $3,090 $3,500 $410 13.3% Stormwater Plant Investment Fee $1,324 $1,392 $68 5.1% Total $11,467 $11,970 $503 4.4% Development Fee Impacts - Single Family Residential Customer Electric rate increases will partially fund enhancements to energy efficiency programs at the wholesale level. Wastewater rate increases provide funding for environmental regulatory compliance. BOARD / COMMISSION RECOMMENDATION At its September 3, 2015, meeting, the Energy Board voted unanimously to support the 2016 electric rate increase. (Attachment 1) Agenda Item 18 Item # 18 Page 8 At its September 17, 2015, meeting, the Water Board voted unanimously to support the proposed 2016 wastewater rate increase, as well as the water, wastewater, and stormwater plant investment fee increases. (Attachment 2) PUBLIC OUTREACH Notice of the proposed electric rate changes was published in the Coloradoan, and a mailing was sent to all city electric customers residing outside of the city limits in accordance with state requirements. Staff plans to conduct outreach to all customers following the adoption of the Ordinances through mailings, face-to-face meetings and social media. A public meeting will be held in November for commercial Key Account businesses. ATTACHMENTS 1. Energy Board Minutes - September 3, 2015 (PDF) 2. Water Board Minutes - September 17, 2015 (PDF) 3. Powerpoint presentation (PDF) Excerpt from Approved Energy Board Minutes September 3, 2015 2016 Utility Rates (Attachments available upon request) Randy Reuscher presented an overview of the electric rate increase, which is required in 2016 due to an increase in wholesale purchase power rates from Platte River Power Authority (PRPA) of 4.5%. The projected increase at the retail level for Fort Collins Utilities electric customers is 3.2%. An electric cost-of-service study was completed in 2014 and the increase is applied evenly to all rate classes for 2016. Discussion Highlights  A board member inquired whether the increase is also due to maintenance of electricity infrastructure. Mr. Reuscher replied that it includes maintenance and capital costs. The board member commented that at a past meeting, aging underground infrastructure was discussed and inquired whether increased maintenance costs are built into these models. Mr. Reuscher replied that they are.  Platte River Power Authority (PRPA) Planning and Customer Service Director John Bleem commented that energy prices have dropped, especially natural gas, due to fracking, and stated it’s a different market than a few years ago. The low energy prices mean Platte River receives less revenue from surplus sales. Surplus sales revenue offsets revenue that otherwise must come from Platte River’s municipalities.  A board member inquired about a comparison between Fort Collins and Longmont. Mr. Reuscher replied that the City of Longmont doesn’t have seasonal rates.  A board member commented that the goal should be to eventually talk about billing rather than rates, and another board member agreed, saying conservation is meaningless otherwise. Customers may use a lower quantity of energy that’s more expensive but overall the bill should be less due to using less energy. Board Member Margaret Moore moved for the Energy Board to approve the electric rate increases for 2016 of 3.2% that will be presented to City Council for first reading on November 3. Vice Chairman Friedman seconded the motion. Board Member Behm recommended an amendment to “recommend approval” rather than approve since the board is not authorized to approve, only make recommendations to City Council. Board Member Moore agreed to amend the motion. Board Member Margaret Moore moved for the Energy Board to recommend approval of the electric rate increases for 2016 of 3.2% that will be presented to City Council for first reading on November 3 pending. Board members recommended adding language suggested by staff “pending final approval of wholesale increases at PRPA board meeting in October.” Board Member Moore agreed to the revisions. Board Member Margaret Moore moved for the Energy Board to recommend approval of the electric rate increases for 2016 of 3.2% that will be presented to City Council for first reading on November 3 pending final approval of wholesale increases at the PRPA board meeting in October. Vote on the motion: It passed unanimously, 8-0. Excerpt from Approved Water Board Minutes September 17, 2015 2016 Water Utility Rates (Attachments available upon request) Utilities Rate Analysts Randy Reuscher and Justin Fields presented proposed changes to Utilities rates and Plant Investment Fees (PIFs). A first reading of this item is scheduled for City Council on November 3; staff requests the board make a recommendation to Council. Staff proposed no increase in 2016 rates for water and stormwater, and a 3% increase for wastewater, relative to 2015. Staff proposed 2016 PIF increases for water (5.2%), stormwater (5.1%), and wastewater (13.0%). The proposed increase in the water and wastewater PIF is designed to partially offset the loss of revenue from decreased base-level and peak demand. The proposed increase in the stormwater PIF reflects increased equity in the system since the 2013 valuation. The proposed 3% wastewater rate increase would be distributed among four customer classes. Staff presented two options, Option A Smoothed and Option B Cost of Service. Option A is preferred by staff because it captures the underlying trends in the cost of service for each customer class, whereas Option B reflects year-to-year variability. Under Option A, rate increases would be 2.5% for all customer classes except commercial, which would be 4.5%. Under Option B, rates increases would range from 1.3% (single-family residential) to 6.3% (commercial). The overall 13.0% increase in the per gallon wastewater PIF reflects the valuation performed by Utilities’ asset management program. A different methodology was previously used for valuation. The recommended PIF adjustment would vary among customer classes. Duplex and multi-family would be 2.0%. Commercial would range from 1.0-12.0% depending on connection size. The charge for connections >2” is calculated based on flow and water quality parameters biochemical oxygen demand (BOD) and total suspended solids (TSS). Discussion Highlights Water  A board member inquired why there is a distinction between a duplex and multifamily for the PIF. Staff explained it was data-driven. Staff replied that there isn’t a difference in the PIF charge between the two classes, but there is for the monthly billing charges, so it is kept separate in the PIF model for consistency and to monitor potential differences in customer usage patterns. Wastewater  A proposed rate increase would maintain reserves. Two options (see explanation in summary above.)  A board member inquired whether there was consistency between previous Cost-of- Service (COS) studies and the most recent study. Staff responded that there is not a high level of consistency. The COS is a guideline or a template, and the lack of consistency is not a surprise. Staff prefers Option A.  A board member inquired how the consumption numbers mesh with numbers in the conservation plan, which indicate decreased use. Staff responded that this analysis was conducted using peak day use.  A board member inquired about use for specific homes that may not meet modeling expectations. Staff explained that models account for typical situations but are not perfect.  A board member commented that the big message is that customers are using less, so the per-unit cost must be higher.  The other key point is that Utilities is investing in infrastructure, which has value and must be paid for. A timeline associating rate increases and drivers would be helpful. A running average of rate increases would help explain the key issues and provide a basis for the smoothing performed in Option A).  A board member inquired about the impact of greywater on rates. Staff agreed that they would need to look at impacts, but suspect the impact would be small in magnitude.  A board member inquired about steep wastewater rate increases in the last several years and wondered how the City compares to its peers. Staff quantified rate increase since 2000. Staff explained that the rapid increase beginning around 2008 can be attributed to the failure of the Mulberry plant. The City's current approach is designed to avoid drastic rate increases.  Stormwater: PIF increase due to capital investments and inflation.  A board member inquired if, when tap fees and PIFs for other services are combined, how Fort Collins compares with its peers. Staff explained that most comparisons include water and wastewater but not stormwater. Staff pointed out that one of the reasons the land outside the city limits is cheap is the lack of City services. Fort Collins and Longmont are much cheaper than any other northern Front Range community. Fort Collins is an outlier because of its strong water rights portfolio, infrastructure, and capacity.  A board member inquired about the 0% increases for water and stormwater. Staff anticipates increase in 2017-18, but cannot justify a 2016 increase based on current numbers.  A board member inquired about the driver for stormwater PIF increases. Staff identified capital projects as the primary driver.  Rate increases (or lack thereof) affect the speed at which capital projects can be accomplished and financing decisions.  A board member inquired about the unanticipated PIFs received this year and asked what the City will do to ensure that there is adequate funding to carry out projects, even during an economic downturn when there are fewer PIFs? Staff asserted that they are planning for a downturn, and that proper engineering for new work will minimize future repair work. Board Member Alex Maas excused himself from the meeting at 7:05 p.m.  A board member inquired why the waterwater PIF increase is shown at 13% when that is only the proposed change for one class of use. Staff explained that the gallons per day for all customer classes is being multiplied by this number to achieve the appropriate rate increase across all classes of use.  A board member inquired about the schedule impacts associated with 0% rate increases. Staff responded that the city will have additional debt capacity as they pay off existing bonds. Staff is having those discussions now for long-term planning.  A board member inquired about Low-Impact-Development (LID) requirements, and whether the positive benefits from those investments could help control PIF increases. Staff responded that LID is a different way of managing runoff. Maintenance of infrastructure is still required.  A board member expressed concern that the numbers available suggest that under Option A, single family residential would subsidize other classes.  Additional information, graphs, etc. would shed additional light. Staff responded that the COS studies can be inconsistent from one year to the next. Board Member Brian Brown made a motion that the Water Board recommends City Council approve the rate and plant investment fee (PIF) changes, either smoothed or cost- of-service, for 2016, as proposed. Board Member Kent Bruxvoort seconded the motion. Discussion Highlights  A board member expressed understanding that staff feels like it would be premature to use cost-of-service to specify rates.  A board member recommended, for future years, using a long-term average of cost-of- service with a minimum 2% annual increase to account for inflation. The motion was approved unanimously, 8-0. 1 2016 Utility Rates & Fees City Council 1st Reading November 3, 2015 ATTACHMENT 3 2 Electric Rates q 2016 revenue increase of 3.2% retail Ø Wholesale costs – expected to go by $3.9M in 2016 Ø higher fuel costs, lower surplus sales, expansion of existing energy efficiency programs Ø Increase does not include climate action plan (CAP) costs Ø Distribution costs - no additional increase planned Current Estimated $ % Rate Class Consumption 2015 2016 Increase Increase Residential Summer - 700 kWh / month $71.40 $73.69 $2.28 3.2% Small Commercial Summer - 2000 kWh / month $198.50 $211.79 $13.29 6.7% Electric Bill Impacts 3 4 5 6 7 Wastewater Rates q 2016 overall revenue increase of 3% Ø Two options below - staff recommends Option A Ø Lessen the impact of volatility in the rate models Ø fluctuations in usage patterns across customer classes Ø fluctuations in budgets from year-to-year 8 Wastewater Rates 9 No increase for 2016 q Water - No rate increase proposed q Stormwater - No rate increase proposed 10 Current Estimated $ % 2015 2016 Increase Increase Electric 700 kWh/mo Stormwater 8,600 sq.ft. lot, light runoff Wastewater 4,800 gal/mo WQA Water 15,000 gal/mo Total Estimated Average Monthly Utility Bill $178.04 $181.18 $3.14 1.8% (Summer Month) Typical Residential Customer – Monthly Utility Bill $14.26 $58.16 $58.16 $71.40 $73.69 $34.21 $35.07 $14.26 $2.28 3.2% $0.00 0.0% $0.86 2.5% $0.00 0.0% 11 Fort Collins Utilities compared to Other Cities 12 Electric Capacity Fee (ECF) Current 2015 Proposed 2016 $ Change % Change $3,554 $3,554 $0 0.0% Current 2015 Proposed 2016 $ Change % Change $32,624 $33,695 $1,070 3.3% Residential Single Family Lot Criteria - 9,200 square feet, 83 feet of street frontage, 150 amp service, 4/0 secondary service Commercial Development Criteria -82,000 sq feet, 190 ft of street frontage, 250 ft primary service, 600 amps, 208 Volt, 3-phase, 1 transformer 13 Water Plant Investment Fee (PIF) Ø GPD charge increased from $4.43 to $4.66 / gallon per day (5.2%) Ø Base use (winter) and peak use (summer) has decreased for all classes 14 Ø Gallon per day (gpd) charge increased from $12.35 to $13.98 / gpd Wastewater Plant Investment Fee 15 Wastewater Plant Investment Fee Ø Lower peak flows partially offset the increase in the $/gpd charge for all classes, except residential single family. 16 Stormwater Plant Investment Fee Ø Increased system equity due to capital investments and annual inflationary factors for replacement cost Ø Last fee adjustment was effective January 2014 2015 Base Rate per Acre 2016 Base Rate per Acre $ Change per Developed Acre % Change $7,817 $8,217 $400 5.1% 17 Residential Development Fee Summary 2015 2016 $ Change % Change Electric Capacity Fee $3,554 $3,554 $0 0.0% Water Plant Investment Fee $3,499 $3,524 $25 0.7% Wastewater Plant Investment Fee $3,090 $3,500 $410 13.3% Stormwater Plant Investment Fee $1,324 $1,392 $68 5.1% Total $11,467 $11,970 $503 4.4% Development Fee Impacts - Single Family Residential Customer Page 1 ORDINANCE NO. 140, 2015 OF THE COUNCIL OF THE CITY OF FORT COLLINS AMENDING CHAPTER 26 OF THE CODE OF THE CITY OF FORT COLLINS TO REVISE ELECTRIC RATES, FEES AND CHARGES WHEREAS, the City Council is empowered and directed by Article XII, Section 6, of the City Charter to fix, establish, maintain and provide for the collection of such rates, fees or charges for utility services furnished by the City as will produce revenues sufficient to pay the costs, expenses and other obligations of the electric utility, as set forth therein; and WHEREAS, the City purchases bulk wholesale electric power from Platte River Power Authority (“PRPA”) pursuant to an Amended Contract for Supply of Electric Power and Energy, dated September 1, 2010; and WHEREAS, PRPA costs are increasing due to reduced wholesale market prices and surplus sales, increased costs for coal, and increased operating costs for aging plants; and WHEREAS, PRPA will increase the City’s wholesale cost of power approximately 4.5% in 2016; and WHEREAS, the increased wholesale power costs will require an average 3.2% increase in the City’s electric rates; and WHEREAS, the proposed rate increase will vary by customer class based on the cost of service to each class; and WHEREAS, Utilities staff have also identified formatting and maintenance updates to Chapter 26 of the City Code to improve the clarity with which rates are explained; and WHEREAS, the Energy Board considered the proposed electric rates, fees and changes, and language clarifications for 2016 at its October 3, 2015, meeting and recommended approval of the rate changes and City Code updates by an unanimous vote; and WHEREAS, the City Manager and staff have recommended to the City Council the following electric rate adjustments and City Code rate language clarifications for all billings issued with meter readings on or after January 1, 2016; and WHEREAS, based on the foregoing, it is the desire of the City Council to amend Chapter 26 of the City Code to revise the electric rates, fees and charges. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows: Section 1. That Sections 26-464 (c), (d), (e), (f), (p), (r) and (s) of the Code of the City of Fort Collins are hereby amended to read as follows: Page 2 Sec. 26-464. Residential energy service, schedule R. . . . (c) Monthly rate. The monthly rates for this schedule are as followsshall be the sum of the following charges: (1) Fixed charge, per account: five dollars and seven cents ($5.07). (2) Distribution facilities charge, per kilowatt hour: two and thirty-eight one- hundredths cents ($0.0238). (3) Energy and demand charge, during the summer season billing months of June, July and August, with the summer season billing month determined by the month the meter is read, and provided that no customer shall be billed more than three (3) full billing cycles at the summer rate. The energy and demand charge shall be billed as follows: a. For the first five hundred (500) kilowatt hours per month, per kilowatt hour: six and five one-hundredths cents ($0.0605). b. For the next five hundred (500) kilowatt hours per month, per kilowatt hour: seven and sixty-nine one-hundredths cents ($0.0769). c. For all additional kilowatt hours per month, per kilowatt hour: ten and ninety-seven one-hundredths cents ($0.1097). (4) Energy and demand charge, during the non-summer season billing months of January through May and September through December: a. For the first five hundred (500) kilowatt hours per month, per kilowatt hour: five and forty-five one-hundredths cents ($0.0545). b. For the next five hundred (500) kilowatt hours per month, per kilowatt hour: five and eighty-five one-hundredths cents ($0.0585). c. For all additional kilowatt hours per month, per kilowatt hour: six and seventy-three one-hundredths cents ($0.0673). (5) In lieu of taxes and franchise: a charge at the rate of six and zero-tenths (6.0) percent of all monthly service charges billed pursuant to this Section. (1) Fixed Charge Per account $5.07 (2) Distribution facilities charge Per kWh $0.0238 Page 3 (3) Energy and demand charge a. Summer. During the summer season billing months of June, July and August, with the summer season billing month determined by the month the meter is read, and provided that no customer shall be billed more than three (3) full billing cycles at the summer rate. 1. Tier 1 - for the first five hundred (500) kilowatt hours per month 2. Tier 2 - for the next five hundred (500) kilowatt hours per month 3. Tier 3 - for all additional kilowatt hours per month Per kWh $0.0632 Per kWh $0.0804 Per kWh $0.1146 b. Non-summer. During the non-summer season billing months of January through May and September through December. 1. Tier 1 - for the first five hundred (500) kilowatt hours per month, per kWh 2. Tier 2 - for the next five hundred (500) kilowatt hours per month, per kWh 3. Tier 3 - for all additional kilowatt hours per month, per kWh Per kWh $0.0570 Per kWh $0.0611 Per kWh $0.0703 (4) Payment in lieu of taxes (PILOT) and franchise. A charge based on all monthly service charges billed pursuant to this Section 6 percent (d) Medical assistance program. (1) The rates described in Subsection (c) above shall be discounted for those electric customers to whom this rate schedule applies and who apply for such discount, as long as: a. the applicant's annual household income falls below sixty (60) percent of the Larimer County Area Median Income (as determined by the Federal Housing Authority); and b. the application is accompanied by a certified, signed statement from a licensed physician that electrical durable medical equipment used at the residential premises is medically necessary and that such medical equipment has been assigned a Healthcare Common Procedure Coding System number; and/or c. a certified, signed statement from a licensed physician that air conditioning at the residential premises is medically necessary for a resident thereof who, in the absence of the air conditioning, may suffer medical deterioration due to a severe immune-compromising medical condition, including, but not limited to, multiple sclerosis, quadriplegia, paraplegia, scleroderma or hemiplegia; and d. the application is accompanied by a sworn affidavit from the applicant verifying that all information contained in the application, including, if applicable, the representation that air conditioning will be operational at the applicant's address during the summer billing months, is true and correct. Page 4 (2) Applications for rate discounts under this Section must be submitted annually in accordance with an administratively established schedule. (3) The discounted monthly rates for customers with electrical durable medical equipment only shall be calculated as follows the sum of the following charges: a. Fixed charge, per account: five dollars and seven cents ($5.07). b. Distribution facilities charge, per kilowatt hour: two and thirty- eight one-hundredths cents ($0.0238). c. Energy and demand charge, during the summer season billing months of June, July and August, with the summer season billing month determined by the month the meter is read, and provided that no customer shall be billed more than three (3) full billing cycles at the summer rate. The energy demand charge shall be billed as follows: 1. For the first five hundred (500) kilowatt hours per month, per kilowatt hour: three and forty-two one-hundredths cents ($0.0342). 2. For the next five hundred (500) kilowatt hours per month, per kilowatt hour: seven and sixty-nine one-hundredths cents ($0.0769). 3. For all additional kilowatt hours per month, per kilowatt hour: ten and ninety-seven one-hundredths cents: ($0.1097). d. Energy and demand charge, during the non-summer season billing months of January through May and September through December: 1. For the first five hundred (500) kilowatt hours per month, per kilowatt hour: two and ninety-eight one-hundredths cents ($0.0298). 2. For the next five hundred (500) kilowatt hours per month, per kilowatt hour: five and eighty-five one-hundredths cents ($0.0585). 3. For all additional kilowatt hours per month, per kilowatt hour: six and seventy-three one-hundredths ($0.0673). e. In lieu of taxes and franchise: a charge at the rate of six and zero- tenths (6.0) percent of all monthly service charges billed pursuant to this Section. a. Fixed Charge Per account $5.07 b. Distribution facilities charge Per kWh $0.0238 c. Energy and demand charge 1. Summer. During the summer season billing months of June, July and August, with the summer season billing month determined by the month the meter is read, and provided that no customer shall be billed more than three (3) full billing cycles at the summer rate. Page 5 (a) Tier 1 - for the first five hundred (500) kilowatt hours per month (b) Tier 2 - for the next five hundred (500) kilowatt hours per month (c) Tier 3 - for all additional kilowatt hours per month Per kWh $0.0357 Per kWh $0.0804 Per kWh $0.1146 2. Non-summer. During the non-summer season billing months of January through May and September through December. (a) Tier 1 - for the first five hundred (500) kilowatt hours per month, per kWh (b) Tier 2 - for the next five hundred (500) kilowatt hours per month, per kWh (c) Tier 3 - for all additional kilowatt hours per month, per kWh Per kWh $0.0311 Per kWh $0.0611 Per kWh $0.0703 d. Payment in lieu of taxes (PILOT) and franchise. A charge based on all monthly service charges billed pursuant to this Section 6 percent (4) The discounted monthly rates for customers with medical needs requiring air conditioning only shall be calculated as follows the sum of the following charges: a. Fixed charge, per account: five dollars and seven cents ($5.07). b. Distribution facilities charge, per kilowatt hour: two and thirty- eight one-hundredths cents ($0.0238). c. Energy and demand charge, during the summer season billing months of June, July and August, with the summer season billing month determined by the month the meter is read, and provided that no customer shall be billed more than three (3) full billing cycles at the summer rate. The energy and demand charge shall be billed as follows: 1. For the first five hundred (500) kilowatt hours per month, per kilowatt hour: three and thirty-five one-hundredths cents ($0.0335). 2. For the next five hundred (500) kilowatt hours per month, per kilowatt hour: four and twenty-five one-hundredths cents ($0.0425). 3. For all additional kilowatt hours per month, per kilowatt hour: ten and ninety-seven one-hundredths cents ($0.1097). d. Energy and demand charge, during the non-summer season billing months of January through May and September through December: 1. For the first five hundred (500) kilowatt hours per month, per kilowatt hour: five and forty-five one-hundredths cents ($0.0545). 2. For the next five hundred (500) kilowatt hours per month, per kilowatt hour: five and eighty-five one-hundredths cents ($0.0585). Page 6 3. For all additional kilowatt hours per month, per kilowatt hour: six and seventy-three one-hundredths cents ($0.0673). e. In lieu of taxes and franchise: a charge at the rate of six and zero- tenths (6.0) percent of all monthly service charges billed pursuant to this Section. a. Fixed Charge Per account $5.07 b. Distribution facilities charge Per kWh $0.0238 c. Energy and demand charge 1. Summer. During the summer season billing months of June, July and August, with the summer season billing month determined by the month the meter is read, and provided that no customer shall be billed more than three (3) full billing cycles at the summer rate. (a) Tier 1 - for the first five hundred (500) kilowatt hours per month (b) Tier 2 - for the next five hundred (500) kilowatt hours per month (c) Tier 3 - for all additional kilowatt hours per month Per kWh $0.0350 Per kWh $0.0444 Per kWh $0.1146 2. Non-summer. During the non-summer season billing months of January through May and September through December. (a) Tier 1 - for the first five hundred (500) kilowatt hours per month, per kWh (b) Tier 2 - for the next five hundred (500) kilowatt hours per month, per kWh (c) Tier 3 - for all additional kilowatt hours per month, per kWh Per kWh $0.0570 Per kWh $0.0611 Per kWh $0.0703 d. Payment in lieu of taxes (PILOT) and franchise. A charge of all monthly service charges billed pursuant to this Section 6 percent (5) The discounted monthly rates for customers with electrical durable medical equipment and medical needs requiring air conditioning shall be calculated as follows the sum of the following charges: a. Fixed charge, per account: five dollars and seven cents ($5.07). b. Distribution facilities charge, per kilowatt hour: two and thirty- eight one-hundredths cents ($0.0238). c. Energy and demand charge, during the summer season billing months of June, July and August, with the summer season billing month determined by the month the meter is read, and provided that no customer shall be billed more than three (3) full billing cycles at the summer rate. The energy and demand charge shall be billed as follows: 1. For the first five hundred (500) kilowatt hours per month, per kilowatt hour: two and nineteen one-hundredths cents ($0.0219). Page 7 2. For the next five hundred (500) kilowatt hours per month, per kilowatt hour: two and seventy-eight one-hundredths cents ($0.0278). 3. For all additional kilowatt hours per month, per kilowatt hour: ten and ninety-seven one-hundredths cents ($0.1097). d. Energy and demand charge, during the non-summer season billing months of January through May and September through December: 1. For the first five hundred (500) kilowatt hours per month, per kilowatt hour: two and ninety-eight one-hundredths cents ($0.0298). 2. For the next five hundred (500) kilowatt hours per month, per kilowatt hour: five and eighty-five one-hundredths cents ($0.0585). 3. For all additional kilowatt hours per month, per kilowatt hour: six and seventy-three one-hundredth cents ($0.0673). e. In lieu of taxes and franchise: a charge at the rate of six and zero- tenths (6.0) percent of all monthly service charges billed pursuant to this Section. a. Fixed Charge Per account $5.07 b. Distribution facilities charge Per kWh $0.0238 c. Energy and demand charge 1. Summer. During the summer season billing months of June, July and August, with the summer season billing month determined by the month the meter is read, and provided that no customer shall be billed more than three (3) full billing cycles at the summer rate. (a) Tier 1 - for the first five hundred (500) kilowatt hours per month (b) Tier 2 - for the next five hundred (500) kilowatt hours per month (c) Tier 3 - for all additional kilowatt hours per month Per kWh $0.0229 Per kWh $0.0291 Per kWh $0.1146 2. Non-summer. During the non-summer season billing months of January through May and September through December. (a) Tier 1 - for the first five hundred (500) kilowatt hours per month, per kWh (b) Tier 2 - for the next five hundred (500) kilowatt hours per month, per kWh (c) Tier 3 - for all additional kilowatt hours per month, per kWh Per kWh $0.0311 Per kWh $0.0611 Per kWh $0.0703 a. Payment in lieu of taxes (PILOT) and franchise. A charge based on all monthly service charges billed pursuant to this Section 6 percent (6) Notwithstanding the foregoing, no rate established under this Subsection shall reflect a discount exceeding an amount consistent with the use of one hundred fifty (150) kilowatt hours per month for the operation of electrical Page 8 durable medical equipment or, if applicable, an additional amount consistent with the use of three hundred fifty (350) kilowatt hours per month for air conditioning. (7) A decision that an applicant does not qualify to participate in this program for a medical or financial reason may be appealed to the Utilities Executive Director, who shall, prior to making his or her decision, and as he or she deems appropriate, confer with one (1) or more medical or financial experts in reviewing such appeal. (e) Renewable resource. Renewable energy resources, including, but not limited to, energy generated by the power of wind, may be offered on a voluntary basis to customers at athe premium of two and four-tenths cents ($0.024) per kilowatt hour set forth in this Subsection (e). The utility may establish and offer voluntary programs designed to increase and enhance the use of energy generated by renewable energy resources in support of Council-adopted policy applicable to the utility. Per kWh $0.024 (f) Excess capacity charge. AThe monthly capacity charge of two dollars ($2.00) per kilowatt set forth in this Subsection (f) may be added to the above charges for service to intermittent loads in accordance with the provisions of the eElectric sService rules and regulationsStandards. Per kW $2.00 . . . (p) Net metering. (1) Net metering service is available to a customer-generator producing electric energy exclusively with a qualifying facility using a qualifying renewable technology when the generating capacity of the customer-generator's qualifying facility meets the following two (2) criteria: a. the qualifying facility is sized to supply no more than one hundred twenty (120) percent of the customer-generator's average annual electricity consumption at that site, including all contiguous property owned or leased by the customer-generator, without regard to interruptions in contiguity caused by easements, public thoroughfares, transportation rights-of-way or utility rights-of-way; and b. the rated capacity of the qualifying facility does not exceed the customer-generator's service entrance capacity. Page 9 (2) The energy generated by an on-site qualifying facility and delivered to the utility's electric distribution facility shall be used to offset energy provided by the utility to the customer-generator during the applicable billing period. (3) The customer-generator and electric service arrangements shall be subject to the requirements and conditions described in the City of Fort Collins Utility Services Interconnection Standards for Generating Facilities Connected to the Fort Collins Distribution System. (4) A customer-generator who receives approval from the electric utility to obtain net metering service shall be subject to the monthly rates described above in this rate schedule section. (5) The customer-generator's consumption of energy from the utility and production of energy that flows into the utility's distribution system shall be measured on a monthly basis. The energy consumed from the utility by the customer-generator shall be billed at the applicable seasonal tiered rate as outlined in Subsection (c) of this Section. The energy produced by the customer-generator shall be credited to the customer monthly as follows: a. Distribution facilities charge, per kilowatt hour: two and thirty- eight one-hundredths cents ($0.0238). b. The energy and demand credit, per kilowatt hour: six and five one- hundredths cents ($0.0605). a. Distribution facilities credit Per kWh $0.0238 b. Energy and demand credit Per kWh $0.0632 (6) TOU rates, for customer-generators participating in a qualifying "time-of- use" (TOU) rate study, consumption of energy from the utility and production of energy that flows into the utility's distribution system shall be measured on a monthly basis. The energy consumed from the utility by the customer-generator shall be billed at the applicable study rates under sSubsection (s) of this Section. The energy produced by the customer-generator shall be credited to the customer monthly as follows: a. The energy and demand credit, per kilowatt hour during the summer season billing months shall be as follows: 1. On-Peak (Mon-Fri, 2 pm to 7 pm, excluding holidays), eighteen and eighty three one-hundredths cents ($0.1883). 2. Off-Peak, three and ninety four one-hundredths cents ($0.0394). b. The energy and demand credit, per kilowatt hour during the non- summer season billing months shall be as follows: 1. On-Peak (Mon-Fri, 5 pm to 9 pm, excluding holidays), fifteen and sixty two one-hundredths cents ($0.1562). Page 10 2. Off-Peak, three and seventy eight one-hundredths cents ($0.0378). a. Energy and demand credit – summer season billing months 1. On-Peak (Mon-Fri, 2 pm to 7 pm, excluding holidays) Per kWh $0.1968 2. Off-Peak Per kWh $0.0412 b. Energy and demand credit – non-summer season billing months 1. On-Peak (Mon-Fri, 5 pm to 9 pm, excluding holidays) Per kWh $0.1632 2. Off-Peak Per kWh $0.0395 . . . (r) Net metering—community solar projects. (1) Net metering service is available to a customer who holds an exclusive interest in a portion of the electric energy generated by a community solar project when the generating capacity of the customer's interest is sized to supply no more than one hundred twenty (120) percent of the customer's average annual electricity consumption at the customer's point of service, including all contiguous property owned or leased by the customer, without regard to interruptions in contiguity caused by easements, public thoroughfares, transportation rights-of- way or utility rights-of-way. (2) The community solar project-generator and electric service arrangements shall be subject to the requirements and conditions described in the City of Fort Collins Utility Services Interconnection Standards for Generating Facilities Connected to the Fort Collins Distribution System. (3) Both the customer's consumption of energy from Fort Collins Utilities and interest in the production of energy that flows into Fort Collins Utilities' distribution system shall be measured on a monthly basis. The energy consumed from Fort Collins Utilities by the customer shall be billed at the applicable seasonal tiered rate as outlined in Subsections (c) and (d) of this Section. The energy produced by the customer's portion of the qualifying facility shall be credited to the customer monthly as follows: 1. Distribution facilities charge, per kilowatt hour: one and nineteen one-hundredths cents ($0.0119). 2. The energy and demand credit, per kilowatt hour: six and five one- hundredths cents ($0.0605). 1. Distribution facilities credit Per kWh $0.0119 2. Energy and demand credit Per kWh $0.0632 (s) Time of Use (TOU) Pilot Study. Page 11 (1) Objective. The City has identified potential benefits available through time-of-use (TOU) based electric service rates, including encouraging reduced energy consumption and equitably shifting energy costs to customers who use more energy. In order to study these benefits, Fort Collins Utilities shall conduct a temporary pilot project beginning with the billing cycle commencing on or after October 1, 2015, and concluding after twelve (12) full billing cycles. (2) Scope. The project shall include six thousand residential energy service (Schedule R) customers selected at random. Customers selected at random will be notified and given a one-time opportunity to "opt-out" of participation in the project. Customers who do not opt-out will be assigned, as determined by the Executive Director, to one of the two pilot rates described in sSubsections (s)(4) (pilot TOU rate) and (s)(5) (pilot TOU with energy efficiency tier rate), or monitored on their existing residential energy service tiered rate, as a control group. (3) Best-bill guarantee. Customers participating in the pilot project for the full twelve (12) billing cycle period will be eligible for the following best-bill guarantee: the total energy costs paid by each customer under either of the pilot rates for the twelve full billing cycles shall be compared with the energy costs such customer would have paid under the base residential energy service tiered rate during the same twelve billing cycles, and each customer shall be reimbursed (by issuance of a billing credit or otherwise, as determined by the Executive Director) for the amount by which the total energy costs paid exceed the amount that would have been due under the base residential energy service tiered rate for such period. Each customer who pays total energy costs under either of the pilot rates during the twelve full billing cycles of the project that are less than the energy costs such customer would have paid under the base residential energy service tiered rate shall retain those savings. (4) Pilot TOU rate. Customers assigned to this rate during the pilot study shall pay monthly rates under this sub-schedule as follows equal to the sum of the following charges: a. Fixed charge, per account: five dollars and seven cents ($5.07). b. Distribution facilities charge, per kilowatt hour: two and thirty eight one-hundredths cents ($0.0238). c. Energy and demand charge, during the summer season billing months of May, June, July, August, and September. The energy and demand charge shall be billed as follows: 1. On-Peak (Mon-Fri, 2 pm to 7 pm, excluding holidays), eighteen and eighty three one-hundredths cents ($0.1883). 2. Off-Peak, three and ninety four one-hundredths cents ($0.0394). d. Energy and demand charge, during the non-summer season billing months of January through April and October through December, The energy and demand charge shall be billed as follows: Page 12 1. On-Peak (Mon-Fri, 5 pm to 9 pm, excluding holidays), fifteen and sixty two one-hundredths cents ($0.1562). 2. Off-Peak, three and seventy eight one-hundredths cents ($0.0378). e. In lieu of taxes and franchise: a charge at the rate of six and zero- tenths (6.0) percent of all monthly service charges billed pursuant to this Subsection. a. Fixed Charge Per account $5.07 b. Distribution facilities charge Per kWh $0.0238 c. Energy and demand charge 1. Summer. During the summer season billing months of May, June, July and August, and September (a) On-Peak (Mon-Fri, 2 pm to 7 pm, excluding holidays) (b) Off-Peak Per kWh $0.1968 Per kWh $0.0412 2. Non-summer. During the non-summer season billing months of January through April and October through December. (a) On-Peak (Mon-Fri, 5 pm to 9 pm, excluding holidays) (b) Off-Peak Per kWh $0.1632 Per kWh $0.0395 d. Payment in lieu of taxes (PILOT) and franchise. A charge based on all monthly service charges billed pursuant to this Section 6 percent (5) Pilot TOU with energy efficiency tier rate. Customers assigned to this rate during the pilot study shall pay monthly rates under this sub-schedule as follows equal to the sum of the following charges: a. Fixed charge, per account: five dollars and seven cents ($5.07). b. Distribution facilities charge, per kilowatt hour: one and ninety four one-hundredths cents ($0.0194). c. Energy and demand charge, during the summer season billing months of May, June, July, August, and September. The energy and demand charge shall be billed as follows: 1. On-Peak (Mon-Fri, 2 pm to 7 pm, excluding holidays), per kilowatt hour: eighteen and eighty three one-hundredths cents ($0.1883) 2. Off-Peak, per kilowatt hour: three and ninety four one- hundredths cents ($0.0394) d. Energy and demand charge, during the non-summer season billing months of January through April and October through December. The energy and demand charge shall be billed as follows: Page 13 1. On-Peak (Mon-Fri, 5 pm to 9 pm, excluding holidays), per kilowatt hour: fifteen and sixty two one-hundredths cents ($0.1562) 2. Off-Peak, per kilowatt hour: three and seventy eight one- hundredths cents ($0.0378) e. Energy efficiency tier charge, per kilowatt hour for total consumption over 700 kWh in a billing month (regardless of on-peak or off-peak): one and sixty three one-hundredths cents ($0.0163). f. In lieu of taxes and franchise: a charge at the rate of six and zero- tenths (6.0) percent of all monthly service charges billed pursuant to this subsection. a. Fixed Charge Per account $5.07 b. Distribution facilities charge Per kWh $0.0194 c. Energy and demand charge 1. Summer. During the summer season billing months of May, June, July, August, and September (a) On-Peak (Mon-Fri, 2 pm to 7 pm, excluding holidays) (b) Off-Peak Per kWh $0.1968 Per kWh $0.0412 2. Non-summer. During the non-summer season billing months of January through April and October through December. (a) On-Peak (Mon-Fri, 5 pm to 9 pm, excluding holidays) (b) Off-Peak Per kWh $0.1632 Per kWh $0.0395 d. Energy efficiency tier charge, per kilowatt hour for total consumption over 700 kWh in a billing month (regardless of on-peak or off-peak) Per kWh $0.0163 e. Payment in lieu of taxes (PILOT) and franchise. A charge based on all monthly service charges billed pursuant to this Section 6 percent Section 2. That Sections 26-465 (a)-(f), (q), and (r) of the Code of the City of Fort Collins are hereby amended to read as follows: Sec. 26-465. Residential demand service, schedule RD. (a) Availability. The residential demand service rate, schedule RD, shall be available within the corporate limits of the City and the suburban fringe. Service under this rate class is available only to customers who establish to the satisfaction of the utility, by providing to the utility such documentation as the utility may deem appropriate, that the residence served is heated entirely by electric energy. Such documentation must be submitted by April 1, 2012. At such time that the utility implements a time-of-use rate, this rate schedule will no longer be available. Page 14 (b) Applicability. This schedule applies to residential customers for all domestic uses in single-family private dwellings, individually metered apartments and home occupations as defined in Article 5 of the Land Use Code. (c) Monthly rate. The monthly rates are as follows shall be the sum of the following charges: (1) Fixed charge, per account: five dollars and seven cents ($5.07). (2) Demand charge, per kilowatt: two dollars and twenty-six cents ($2.26). (3) Distribution facilities charge, per kilowatt hour: two and eleven one- hundredths cents ($0.0211). (4) Energy charge, per kilowatt hour: a. During the summer season billing months of June, July and August: four and sixteen one-hundredths cents ($0.0416). b. During the non-summer season billing months of January through May and September through December: four and zero one-hundredths cents ($0.0400). c. The meter reading date shall generally determine the summer season billing months; however, no customer shall be billed more than three (3) full billing cycles at the summer rate. (5) In lieu of taxes and franchise: a charge at the rate of six and zero-tenths (6.0) percent of monthly service charges billed pursuant to this Section. (1) Fixed Charge Per account $5.07 (2) Demand charge Per kW $2.36 (3) Distribution facilities charge Per kWh $0.0211 (4) Energy charge a. Summer season billing months of June, July and August b. Non-summer season billing months of January through May and September through December Per kWh $0.0435 Per kWh $0.0418 c. The meter reading date shall generally determine the summer season billing months; however, no customer shall be billed more than three (3) full billing cycles at the summer rate. (5) Payment in lieu of taxes (PILOT) and franchise. A charge based on all monthly service charges billed pursuant to this Section 6 percent (d) Renewable resource. Renewable energy resources, including, but not limited to, energy generated by the power of wind, may be offered on a voluntary basis to customers at athe premium of two and four-tenths cents ($0.024) per kilowatt hour set forth in this Subsection (d). The utility may establish and offer voluntary programs designed to Page 15 increase and enhance the use of energy generated by renewable energy resources in support of Council-adopted policy applicable to the utility. Per kWh $0.024 (e) Excess capacity charge. AThe monthly capacity charge of two dollars ($2.00) per kilowatt set forth in this Subsection (e) may be added to the above charges for service to intermittent loads in accordance with the provisions of the eElectric sService rules and regulationsStandards. Per kW $2.00 (f) Standby service charges. Standby service, if available, will be provided on an annual contract basis at a level at least sufficient to meet probable service demand (in kilowatts) as determined by the customer and approved by the utility according to the following: (1) The mMonthly standby distribution charge shall be two dollars and thirty- three cents ($2.33) per kilowatt of contracted standby service. This charge shall be in lieu of the distribution facilities charge. For all metered kilowatts in excess of the contracted amount, the standby distribution charge shall be six dollars and ninety-nine cents ($6.99) per kilowatt. Contracted standby service, this charge shall be in lieu of the distribution facilities charge. Per kW $2.33 For all metered kilowatts in excess of the contracted amount Per kW $6.99 (2) In the event the contractual kilowatt amount is exceeded, the beginning date of the contract period will be reset. The first month of the new contract period will become the current billing month and such month's metered demand shall become the minimum allowable contract demand for the standby service. Requests for standby service may be subject to a waiting period. An operation and maintenance charge may be added for special facilities required to provide standby service. . . . (q) Net metering. (1) Net metering service is available to a customer-generator producing electric energy exclusively with a qualifying facility using a qualifying renewable technology when the generating capacity of the customer-generator's qualifying facility meets the following two (2) criteria: a. the qualifying facility is sized to supply no more than one hundred twenty (120) percent of the customer-generator's average annual electricity consumption at that site, including all contiguous property owned or Page 16 leased by the customer-generator, without regard to interruptions in contiguity caused by easements, public thoroughfares, transportation rights-of-way or utility rights-of-way; and b. the rated capacity of the qualifying facility does not exceed the customer-generator's service entrance capacity. (2) The energy generated by an on-site qualifying facility and delivered to the utility's electric distribution facility shall be used to offset energy provided by the utility to the customer-generator during the applicable billing period. (3) The customer-generator and electric service arrangements shall be subject to the requirements and conditions described in the City of Fort Collins Utility Services Interconnection Standards for Generating Facilities Connected to the Fort Collins Distribution System. (4) A customer-generator who receives approval from the electric utility to obtain net metering service shall be subject to the monthly rates described above in this rate schedule section. (5) The customer-generator's consumption of energy from the utility and production of energy that flows into the utility's distribution system shall be measured on a monthly basis. The energy consumed from the utility by the customer-generator shall be billed at the applicable seasonal tiered rate as outlined in Subsection (c) of this Section. The energy produced by the customer-generator shall be credited to the customer monthly as follows: a. Distribution facilities charge, per kilowatt hour: two and thirty- eight one-hundredths cents ($0.0238). b. The energy and demand credit, per kilowatt hour: six and five one- hundredths cents ($0.0605). a. Distribution facilities credit Per kWh $0.0238 b. Energy and demand credit Per kWh $0.0632 (r) Net metering—community solar projects. (1) Net metering service is available to a customer who holds an exclusive interest in a portion of the electric energy generated by a community solar project when the generating capacity of the customer's interest is sized to supply no more than one hundred twenty (120) percent of the customer's average annual electricity consumption at the customer's point of service, including all contiguous property owned or leased by the customer, without regard to interruptions in contiguity caused by easements, public thoroughfares, transportation rights-of- way or utility rights-of-way. (2) The community solar project-generator and electric service arrangements shall be subject to the requirements and conditions described in the City of Fort Collins Utility Services Interconnection Standards for Generating Facilities Connected to the Fort Collins Distribution System. Page 17 (3) Both the customer's consumption of energy from Fort Collins Utilities and interest in the production of energy that flows into Fort Collins Utilities' distribution system shall be measured on a monthly basis. The energy consumed from Fort Collins Utilities by the customer shall be billed at the applicable seasonal tiered rate as outlined in Subsection (c) of this Section. The energy produced by the customer's portion of the qualifying facility shall be credited to the customer monthly as follows: 1. Distribution facilities charge, per kilowatt hour: one and nineteen one-hundredths cents ($0.0119). 2. The energy and demand credit, per kilowatt hour: six and five one- hundredths cents ($0.0605). 1. Distribution facilities credit Per kWh $0.0119 2. Energy and demand credit Per kWh $0.0632 Section 3. That Sections 26-465 (c)-(f), (q), and (r) of the Code of the City of Fort Collins are hereby amended to read as follows: Sec. 26-466. General service, schedule GS. (c) Monthly rate. The monthly rates for this schedule are as follows shall be the sum of the following charges: (1) Fixed charge, per account: a. Single-phase, two-hundred-ampere service: three dollars and twenty-six cents ($3.26). b. Single-phase, above two-hundred-ampere service: nine dollars and sixty cents ($9.60). c. Three-phase, two-hundred-ampere service: four dollars and ninety- six cents ($4.96). d. Three-phase, above two-hundred-ampere service: eleven dollars and seventy-four cents ($11.74). (2) Demand charge, per kilowatt hour: a. During the summer season billing months of June, July and August: two and seventy-seven one-hundredths cents ($0.0277). b. During the non-summer season billing months of January through May and September through December: one and forty-nine one- hundredths cents ($0.0149). c. The meter reading date shall generally determine the summer season billing months; however, no customer shall be billed more than three (3) full billing cycles at the summer rate. Page 18 (3) Distribution facilities charge, per kilowatt hour: Two and twenty-seven one-hundredths cents ($0.0227). (4) Energy charge, per kilowatt hour: a. During the summer season billing months of June, July and August: four and sixteen one-hundredths cents ($0.0416). b. During the non-summer season billing months of January through May and September through December: four and zero one-hundredths cents ($0.0400). c. The meter reading date shall generally determine the summer season billing months; however, no customer shall be billed more than three (3) full billing cycles at the summer rate. (5) In lieu of taxes and franchise: a charge at the rate of six and zero-tenths (6.0) percent of all monthly service charges billed pursuant to this Section. 1. Fixed Charge a. Single-phase, two-hundred-ampere service Per account $ 3.26 b. Single-phase, above two-hundred-ampere service Per account $ 9.60 c. Three-phase, two-hundred-ampere service Per account $ 4.96 d. Three-phase, above two-hundred-ampere service Per account $11.74 2. Demand charge a. Summer season billing months of June, July, and August Per kWh $0.0289 b. Non-summer season billing months of January through May and September through December Per kWh $0.0156 c. The meter reading date shall generally determine the summer season billing months; however, no customer shall be billed more than three (3) full billing cycles at the summer rate. 3. Distribution facilities charge Per kWh $0.0227 4. Energy charge a. Summer season billing months of June, July, and August Per kWh $0.0435 b. Non-summer season billing months of January through May and September through December Per kWh $0.0418 c. The meter reading date shall generally determine the summer season billing months; however, no customer shall be billed more than three (3) full billing cycles at the summer rate. 5. Payment in lieu of taxes (PILOT) and franchise. A charge based on all monthly service charges billed pursuant to this Section 6 percent (d) Renewable resource. Renewable energy resources, including, but not limited to, energy generated by the power of wind, may be offered on a voluntary basis to customers at athe premium of two and four-tenths cents ($0.024) per kilowatt hour set forth in this Page 19 Subsection (d). The utility may establish and offer voluntary programs designed to increase and enhance the use of energy generated by renewable energy resources in support of Council-adopted policy applicable to the utility. Per kWh $0.024 (e) Excess capacity charge. AThe monthly capacity charge of two dollars ($2.00) per kilowatt set forth in this Subsection (e) may be added to the above charges for service to intermittent loads in accordance with the provisions of the eElectric sService rules and regulationsStandards. Per kW $2.00 . . . (q) Net metering. (1) Net metering service is available to a customer-generator producing electric energy exclusively with a qualifying facility using a qualifying renewable technology when the generating capacity of the customer-generator's qualifying facility meets the following two (2) criteria: a. The qualifying facility is sized to supply no more than one hundred twenty (120) percent of the customer-generator's average annual electricity consumption at that site, including all contiguous property owned or leased by the customer-generator, without regard to interruptions in contiguity caused by easements, public thoroughfares, transportation rights-of-way or utility rights-of-way; and b. The rated capacity of the qualifying facility does not exceed the customer-generator's service entrance capacity. (2) The energy generated by an on-site qualifying facility and delivered to the utility's electric distribution facility shall be used to offset energy provided by the utility to the customer-generator during the applicable billing period. (3) The customer-generator and electric service arrangements shall be subject to the requirements and conditions described in the City of Fort Collins Utility Services Interconnection Standards for Generating Facilities Connected to the Fort Collins Distribution System. (4) A customer-generator who receives approval from the electric utility to obtain net metering service shall be subject to the monthly rates described above in this rate schedule section. (5) The customer-generator's consumption of energy from the utility shall be measured on a monthly basis and, in the event that the qualifying facility has produced more electricity than the customer-generator has consumed, the Page 20 customer-generator shall receive a monthly credit for such production. During the second calendar quarter of each year, the customer-generator shall receive payment for the net excess generation accrued for the preceding twelve (12) months. The credit per kilowatt hour for the energy delivered to the electric utility under this provision shall be provided at the summer season energy charge as specified in Subsection (c) of this Section. The customer-generator's consumption of energy from the utility and production of energy that flows into the utility's distribution system shall be measured on a monthly basis. The energy consumed from the utility by the customer-generator shall be billed at the applicable rate as outlined in Subsection (c) of this Section. The energy produced by the customer- generator shall be credited to the customer monthly as follows: a. Summer season energy credit Per kWh $0.0435 (r) Net metering—community solar projects. (1) Net metering service is available to a customer who holds an exclusive interest in a portion of the electric energy generated by a community solar project when the generating capacity of the customer's interest is sized to supply no more than one hundred twenty (120) percent of the customer's average annual electricity consumption at the customer's point of service, including all contiguous property owned or leased by the customer, without regard to interruptions in contiguity caused by easements, public thoroughfares, transportation rights-of- way or utility rights-of-way. (2) The community solar project-generator and electric service arrangements shall be subject to the requirements and conditions described in the City of Fort Collins Utility Services Interconnection Standards for Generating Facilities Connected to the Fort Collins Distribution System. (3) Both the customer's consumption of energy from Fort Collins Utilities and interest in the production of energy that flows into Fort Collins Utilities' distribution system shall be measured on a monthly basis. The energy consumed from Fort Collins Utilities by the customer shall be billed at the applicable seasonal tiered rate as outlined in Subsection (c) of this Section. The energy produced by the customer's portion of the qualifying facility shall be credited to the customer monthly as follows: 1. Distribution facilities charge, per kilowatt hour: one and fourteen one-hundredths cents ($0.0114). 2. The energy and demand credit, per kilowatt hour: four and sixteen one-hundredths cents ($0.0416). 1. Distribution facilities credit Per kWh $0.0114 2. Energy and demand credit Per kWh $0.0435 Page 21 Section 4. That Sections 26-467 (c)-(f) and (r) of the Code of the City of Fort Collins are hereby amended to read as follows: Sec. 26-467. General service 25, schedule GS25. (c) Monthly rate. The monthly rates for this schedule are as followsshall be the sum of the following charges: (1) Fixed charge, per account: a. Single-phase, two-hundred-ampere service: three dollars and twenty-six cents ($3.26). b. Single-phase, above two-hundred-ampere service: nine dollars and sixty cents ($9.60). c. Three-phase, two-hundred-ampere service: four dollars and ninety- six cents ($4.96). d. Three-phase, above two-hundred-ampere service: eleven dollars and seventy-four cents ($11.74). (2) Demand charge, per kilowatt: a. During the summer season billing months of June, July and August: seven dollars and fifty-two cents ($7.52). b. During the non-summer season billing months of January through May and September through December: four dollars and thirty-seven cents ($4.37). c. The meter reading date shall generally determine the summer season billing months; however, no customer shall be billed more than three (3) full billing cycles at the summer rate. (3) Distribution facilities charge, per kilowatt hour: one and seventy-six one- hundredths cents ($0.0176). (4) Energy charge, per kilowatt hour: a. During the summer season billing months of June, July and August: four and sixteen one-hundredths cents ($0.0416). b. During the non-summer season billing months of January through May and September through December: four and zero one-hundredths cents ($0.0400). c. The meter reading date shall generally determine the summer season billing months; however, no customer shall be billed more than three (3) full billing cycles at the summer rate. (5) In lieu of taxes and franchise: a charge at the rate of six and zero-tenths (6.0) percent of all monthly service charges billed pursuant to this Section. 1. Fixed Charge Page 22 a. Single-phase, two-hundred-ampere service Per account $ 3.26 b. Single-phase, above two-hundred-ampere service Per account $ 9.60 c. Three-phase, two-hundred-ampere service Per account $ 4.96 d. Three-phase, above two-hundred-ampere service Per account $11.74 2. Demand charge a. Summer season billing months of June, July, and August Per kW $7.86 b. Non-summer season billing months of January through May and September through December Per kW $4.57 c. The meter reading date shall generally determine the summer season billing months; however, no customer shall be billed more than three (3) full billing cycles at the summer rate. 3. Distribution facilities charge Per kwh $0.0176 4. Energy charge a. Summer season billing months of June, July, and August Per kWh $0.0435 b. Non-summer season billing months of January through May and September through December Per kWh $0.0418 c. The meter reading date shall generally determine the summer season billing months; however, no customer shall be billed more than three (3) full billing cycles at the summer rate. 5. Payment in lieu of taxes (PILOT) and franchise. A charge based on all monthly service charges billed pursuant to this Section 6 percent (d) Renewable resource. Renewable energy resources, including, but not limited to, energy generated by the power of wind, may be offered on a voluntary basis to customers at athe premium of two and four-tenths cents ($0.024) per kilowatt hour set forth in this Subsection (d). The utility may establish and offer voluntary programs designed to increase and enhance the use of energy generated by renewable energy resources in support of Council-adopted policy applicable to the utility. Per kWh $0.024 (e) Excess capacity charge. AThe monthly capacity charge of two dollars ($2.00) per kilowatt set forth in this Subsection (e) may be added to the above charges for service to intermittent loads in accordance with the provisions of the eElectric sService rules and regulationsStandards. Per kW $2.00 Page 23 (f) Standby service charges. Standby service, if available, will be provided on an annual contract basis at a level at least sufficient to meet probable service demand (in kilowatts) as determined by the customer and approved by the utility according to the following: (1) The mMonthly standby distribution charge shall be three dollars and eighty-two cents ($3.82) per kilowatt of contracted standby service. This charge shall be in lieu of the distribution facilities charge. For all metered kilowatts in excess of the contracted amount, the standby distribution charge shall be eleven dollars and forty-five cents ($11.45) per kilowatt. Contracted standby service, this charge shall be in lieu of the distribution facilities charge. Per kW $3.82 For all metered kilowatts in excess of the contracted amount Per kW $11.45 (2) In the event the contractual kilowatt amount is exceeded, the beginning date of the contract period will be reset. The first month of the new contract period will become the current billing month and such month's metered demand shall become the minimum allowable contract demand for the standby service. Requests for standby service may be subject to a waiting period. An operation and maintenance charge may be added for special facilities required to provide standby service. . . . (r) Net metering. (1) Net metering service is available to a customer-generator producing electric energy exclusively with a qualifying facility when the generating capacity of the customer-generator's qualifying facility meets the following two (2) criteria: a. The qualifying facility is sized to supply no more than one hundred twenty (120) percent of the customer-generator's average annual electricity consumption at that site, including all contiguous property owned or leased by the customer-generator, without regard to interruptions in contiguity caused by easements, public thoroughfares, transportation rights-of-way or utility rights-of-way; and b. The rated capacity of the qualifying facility does not exceed the customer-generator's service entrance capacity. (2) The energy generated by an on-site qualifying facility and delivered to the utility's electric distribution facility shall be used to offset energy provided by the utility to the customer-generator during the applicable billing period. (3) The customer-generator and electric service arrangements shall be subject to the requirements and conditions described in the City of Fort Collins Utility Services Interconnection Standards for Generating Facilities Connected to the Fort Collins Distribution System. Page 24 (4) A customer-generator who receives approval from the electric utility to obtain net metering service shall be subject to the monthly rates described above in this rate schedule section. (5) The customer-generator's consumption of energy from the utility shall be measured on a monthly basis and, in the event that the qualifying facility has produced more electricity than the customer-generator has consumed, the customer-generator shall receive a monthly credit for such production. During the second calendar quarter of each year, the customer-generator shall receive payment for the net excess generation accrued for the preceding twelve (12) months. The credit per kilowatt hour for the energy delivered to the electric utility under this provision shall be provided at the summer season energy charge as specified in Subsection (c) of this Section. The customer-generator's consumption of energy from the utility and production of energy that flows into the utility's distribution system shall be measured on a monthly basis. The energy consumed from the utility by the customer-generator shall be billed at the applicable rate as outlined in Subsection (c) of this Section. The energy produced by the customer- generator shall be credited to the customer monthly as follows: a. Summer season energy credit Per kWh $0.0435 Section 5. That Sections 26-468 (c)-(g), and (u) of the Code of the City of Fort Collins are hereby amended to read as follows: Sec. 26-468. General service 50, schedule GS50. (c) Monthly rate. The monthly rates for this schedule are as followsshall be the sum of the following charges: (1) Fixed charge, per account: nine dollars and forty-five cents ($9.45). An additional charge of forty dollars and zero cents ($40.00) may be assessed if telephone communication service is not provided by the customer. (2) Coincident demand charge, per kilowatt: a. During the summer season billing months of June, July and August: eleven and eighteen cents ($11.18). b. During the non-summer season billing months of January through May and September through December: seven dollars and eighty cents ($7.80). c. The meter reading date shall generally determine the summer season billing months; however, no customer shall be billed more than three (3) full billing cycles at the summer rate. (3) Distribution facilities demand charge, per kilowatt: five dollars and ninety cents ($5.90). Page 25 (4) Energy charge, per kilowatt hour: a. During the summer season billing months of June, July and August: four and sixteen one-hundredths cents ($0.0416). b. During the non-summer season billing months of January through May and September through December: four and zero one-hundredths cents ($0.0400). c. The meter reading date shall generally determine the summer season billing months; however, no customer shall be billed more than three (3) full billing cycles at the summer rate. (5) In lieu of taxes and franchise: a charge at the rate of six and zero-tenths (6.0) percent of all monthly service charges billed pursuant to this Section. (1) Fixed Charge Per account $9.45 An additional charge may be assessed if telephone communication service is not provided by the customer. Per account $40.00 (2) Coincident demand charge a. summer season billing months of June, July and August Per kW $11.68 b. non-summer season billing months of January through May and September through December Per kW $8.15 c. The meter reading date shall generally determine the summer season billing months; however, no customer shall be billed more than three (3) full billing cycles at the summer rate. (3) Distribution facilities charge Per kW $5.90 (4) Energy charge a. Summer season billing months of June, July, and August Per kWh $0.0435 b. Non-summer season billing months of January through May and September through December Per kWh $0.0418 c. The meter reading date shall generally determine the summer season billing months; however, no customer shall be billed more than three (3) full billing cycles at the summer rate. (5) Payment in lieu of taxes (PILOT) and franchise. A charge based on all monthly service charges billed pursuant to this Section 6 percent (d) Renewable resource. Renewable energy resources, including, but not limited to, energy generated by the power of wind, may be offered on a voluntary basis to customers at athe premium of two and four-tenths cents ($0.024) per kilowatt hour set forth in this Subsection (d). The utility may establish and offer voluntary programs designed to increase and enhance the use of energy generated by renewable energy resources in support of Council-adopted policy applicable to the utility. Page 26 Per kWh $0.024 (e) Excess capacity charge. AThe monthly capacity charge of two dollars ($2.00) per kilowatt set forth in this Subsection (e) may be added to the above charges for service to intermittent loads in accordance with the provisions of the eElectric sService rules and regulationsStandards. Per kW $2.00 (f) Standby service charges. Standby service, if available, will be provided on an annual contract basis at a level at least sufficient to meet probable service demand (in kilowatts) as determined by the customer and approved by the utility according to the following: (1) Standby distribution charge. a. The mMonthly standby distribution charge shall be the sum of the following charges: four dollars and seventy-two cents ($4.72) per kilowatt of contracted standby service. This charge shall be in lieu of the distribution facilities charge. For all metered kilowatts in excess of the contracted amount, the standby distribution charge shall be fourteen dollars and sixteen cents ($14.16) per kilowatt. Contracted standby service, this charge shall be in lieu of the distribution facilities charge. Per kW $4.72 For all metered kilowatts in excess of the contracted amount Per kW $14.16 b. In the event the contractual kilowatt amount is exceeded, the beginning date of the contract period will be reset. The first month of the new contract period will become the current billing month and such month's metered demand shall become the minimum allowable contract demand for the standby service. Requests for standby service may be subject to a waiting period. An operation and maintenance charge may be added for special facilities required to provide standby service. (2) Standby generation and transmission charge. All charges incurred by the utility under Platte River Power Authority's applicable tariffs, as may be amended from time to time, will be billed to the customer as a standby generation and transmission charge. (g) Excess circuit charge. In the event a utility customer in this rate class desires excess circuit capacity for the purpose of controlling the available electric capacity of a backup circuit connection, this service, if available, will be provided on an annual contract basis at a level at least sufficient to meet probable backup demand (in kilowatts) as determined by the customer and approved by the utility according to the following: (1) The excess circuit Monthly charge shall be the sum of the following charges: eighty-six cents ($0.86) per contracted kilowatt of backup capacity per Page 27 month. For any metered kilowatts in excess of the contracted amount, the excess circuit charge shall be two dollars and fifty-eight cents ($2.58) per kilowatt. Contracted backup capacity per month Per kW $0.86 Metered kilowatts in excess of the contracted amount Per kW $2.58 (2) In the event the contractual kilowatt limit is exceeded, a new annual contract period will automatically begin as of the month the limit is exceeded. The metered demand in the month of exceedance shall become the minimum contracted demand level for the excess circuit charge. . . . (u) Net metering. (1) Net metering service is available to a customer-generator producing electric energy exclusively with a qualifying facility using a qualifying renewable technology when the generating capacity of the customer-generator's qualifying facility meets the following two (2) criteria: a. the qualifying facility is sized to supply no more than one hundred twenty (120) percent of the customer-generator's average annual electricity consumption at that site, including all contiguous property owned or leased by the customer-generator, without regard to interruptions in contiguity caused by easements, public thoroughfares, transportation rights-of-way or utility rights-of-way; and b. the rated capacity of the qualifying facility does not exceed the customer-generator's service entrance capacity. (2) The energy generated by an on-site qualifying facility and delivered to the utility's electric distribution facility shall be used to offset energy provided by the utility to the customer-generator during the applicable billing period. (3) The customer-generator and electric service arrangements shall be subject to the requirements and conditions described in the City of Fort Collins Utility Services Interconnection Standards for Generating Facilities Connected to the Fort Collins Distribution System. (4) A customer-generator who receives approval from the electric utility to obtain net metering service shall be subject to the monthly rates described above in this rate schedule section. (5) The customer-generator's consumption of energy from the utility shall be measured on a monthly basis and, in the event that the qualifying facility has produced more electricity than the customer-generator has consumed, the customer-generator shall receive a monthly credit for such production. During the second calendar quarter of each year, the customer-generator shall receive payment for the net excess generation accrued for the preceding twelve (12) months. The credit per kilowatt hour for the energy delivered to the electric utility under this provision shall be provided at the summer season energy charge as Page 28 specified in Subsection (c) of this Section. The customer-generator's consumption of energy from the utility and production of energy that flows into the utility's distribution system shall be measured on a monthly basis. The energy consumed from the utility by the customer-generator shall be billed at the applicable rate as outlined in Subsection (c) of this Section. The energy produced by the customer- generator shall be credited to the customer monthly as follows: a. Summer season energy credit Per kWh $0.0435 Section 6. That Sections 26-469 (c)-(g) and (v) of the Code of the City of Fort Collins are hereby amended to read as follows: Sec. 26-469. General service 750, schedule GS750. (c) Monthly rate. The monthly rates for this schedule shall be the sum of the following charges: are as follows: (1) Fixed charge, per account: fifteen dollars and twenty-four cents ($15.24). a. Additional charge for each additional metering point: nine dollars and fifty cents ($9.50). b. An additional charge of forty dollars and zero cents ($40.00) for each metering point may be assessed if telephone communication service is not provided by the customer. (2) Coincident demand charge, per kilowatt: a. During the summer season billing months of June, July and August: eleven and one cent ($11.01). b. During the non-summer season billing months of January through May and September through December: seven dollars and sixty-nine cents ($7.69). c. The meter reading date shall generally determine the summer season billing months; however, no customer shall be billed more than three (3) full billing cycles at the summer rate. (3) Distribution facilities demand charge, per kilowatt: a. First seven hundred fifty (750) kilowatts: five dollars and eighty- five cents ($5.85). b. All additional kilowatts: three dollars and forty-eight cents ($3.48). (4) Energy charge, per kilowatt hour: a. During the summer season billing months of June, July and August: four and ten one-hundredths cents ($0.0410). Page 29 b. During the non-summer season billing months of January through May and September through December: three and ninety-four one- hundredths cents ($0.0394). c. The meter reading date shall generally determine the summer season billing months; however, no customer shall be billed more than three (3) full billing cycles at the summer rate. (5) In lieu of taxes and franchise: a charge at the rate of six and zero-tenths (6.0) percent of all monthly service charges billed pursuant to this Section. (1) Fixed Charge Per account $15.24 a. Additional charge for each additional metering point Per account $9.50 b. An additional charge may be assessed if telephone communication service is not provided by the customer. Per account $40.00 (2) Coincident demand charge a. summer season billing months of June, July and August Per kW $11.51 b. non-summer season billing months of January through May and September through December Per kW $8.04 c. The meter reading date shall generally determine the summer season billing months; however, no customer shall be billed more than three (3) full billing cycles at the summer rate. (3) Distribution facilities charge a. First seven hundred fifty (750) kilowatts Per kW $5.85 b. All additional kilowatts Per kW $3.48 (4) Energy charge a. Summer season billing months of June, July, and August Per kWh $0.0428 b. Non-summer season billing months of January through May and September through December Per kWh $0.0412 c. The meter reading date shall generally determine the summer season billing months; however, no customer shall be billed more than three (3) full billing cycles at the summer rate. (5) Payment in lieu of taxes (PILOT) and franchise. A charge based on all monthly service charges billed pursuant to this Section 6 percent (d) Renewable resource. Renewable energy resources, including, but not limited to, energy generated by the power of wind, may be offered on a voluntary basis to customers at athe premium of two and four-tenths cents ($0.024) per kilowatt hour set forth in this Subsection (d). The utility may establish and offer voluntary programs designed to increase and enhance the use of energy generated by renewable energy resources in support of Council-adopted policy applicable to the utility. Page 30 Per kWh $0.024 (e) Excess capacity charge. AThe monthly capacity charge of two dollars ($2.) per kilowatt set forth in this Subsection (e) may be added to the above charges for service to intermittent loads in accordance with the provisions of the eElectric sService rules and regulationsStandards. Per kW $2.00 (f) Standby service charges. Standby service, if available, will be provided on an annual contract basis at a level at least sufficient to meet probable service demand (in kilowatts) as determined by the customer and approved by the utility according to the following: (1) Standby distribution charge. a. The mMonthly standby distribution charges shall be paid in the following amounts three dollars and fifty-two cents ($3.52) per kilowatt of contracted standby service. This charge shall be in lieu of the distribution facilities charge. For all metered kilowatts in excess of the contracted amount, the standby distribution charge shall be ten dollars and fifty-six cents ($10.56) per kilowatt. Contracted standby service, this charge shall be in lieu of the distribution facilities charge. Per kW $3.52 For all metered kilowatts in excess of the contracted amount Per kW $10.56 b. In the event the contractual kilowatt amount is exceeded, the beginning date of the contract period will be reset. The first month of the new contract period will become the current billing month and such month's metered demand shall become the minimum allowable contract demand for the standby service. Requests for standby service may be subject to a waiting period. An operation and maintenance charge may be added for special facilities required to provide standby service. (2) Standby generation and transmission charge. All charges incurred by the utility under the Platte River Power Authority's applicable tariffs, as may be amended from time to time, will be billed to the customer as a standby generation and transmission charge. (g) Excess circuit charge. In the event a utility customer in this rate class desires excess circuit capacity for the purpose of controlling the available electric capacity of a backup circuit connection, this service, if available, will be provided on an annual contract basis at a level at least sufficient to meet probable backup demand (in kilowatts) as determined by the customer and approved by the utility at the following ratesaccording to the following: Page 31 (1) The excess circuit Monthly charge shall be sixty-four cents ($0.64) per contracted kilowatt of backup capacity per month. For any metered kilowatts in excess of the contracted amount, the excess circuit charge shall be one dollar and ninety-two cents ($1.92) per kilowatt. Contracted backup capacity per month Per kW $0.64 Metered kilowatts in excess of the contracted amount Per kW $1.92 (2) In the event the contractual kilowatt limit is exceeded, a new annual contract period will automatically begin as of the month the limit is exceeded. The metered demand in the month of exceedance shall become the minimum contracted demand level for the excess circuit charge. . . . (v) Net metering. (1) Net metering service is available to a customer-generator producing electric energy exclusively with a qualifying facility using a qualifying renewable technology when the generating capacity of the customer-generator's qualifying facility meets the following two (2) criteria: a. the qualifying facility is sized to supply no more than one hundred twenty (120) percent of the customer-generator's average annual electricity consumption at that site, including all contiguous property owned or leased by the customer-generator, without regard to interruptions in contiguity caused by easements, public thoroughfares, transportation rights-of-way or utility rights-of-way; and b. the rated capacity of the qualifying facility does not exceed the customer-generator's service entrance capacity. (2) The energy generated by an on-site qualifying facility and delivered to the utility's electric distribution facility shall be used to offset energy provided by the utility to the customer-generator during the applicable billing period. (3) The customer-generator and electric service arrangements shall be subject to the requirements and conditions described in the City of Fort Collins Utility Services Interconnection Standards for Generating Facilities Connected to the Fort Collins Distribution System. (4) A customer-generator who receives approval from the electric utility to obtain net metering service shall be subject to the monthly rates described above for this rate schedule. (5) The customer-generator's consumption of energy from the utility shall be measured on a monthly basis and, in the event that the qualifying facility has produced more electricity than the customer-generator has consumed, the customer-generator shall receive a monthly credit for such production. During the second calendar quarter of each year, the customer-generator shall receive payment for the net excess generation accrued for the preceding twelve (12) Page 32 months. The credit per kilowatt hour for the energy delivered to the electric utility under this provision shall be provided at the summer season energy charge as specified in Subsection (c) of this Section. The customer-generator's consumption of energy from the utility and production of energy that flows into the utility's distribution system shall be measured on a monthly basis. The energy consumed from the utility by the customer-generator shall be billed at the applicable rate as outlined in Subsection (c) of this Section. The energy produced by the customer- generator shall be credited to the customer monthly as follows: a. Summer season energy credit Per kWh $0.0428 Section 7. That Sections 26-470 (c)-(e), and (s) of the Code of the City of Fort Collins are hereby amended to read as follows: Sec. 26-470. Substation service, schedule SS. (c) Monthly rate. The monthly rates for this schedule shall be the sum of the following charges are as follows: (1) Fixed charge, per account: thirty-nine dollars and forty-seven cents ($39.47). (2) Coincident demand charge, per kilowatt: a. During the summer season billing months of June, July and August: ten dollars and eighty-four cents ($10.84). b. During the non-summer season billing months of January through May and September through December: seven dollars and fifty-seven cents ($7.57). c. The meter reading date shall generally determine the summer season billing months; however, no customer shall be billed more than three (3) full billing cycles at the summer rate. (3) Distribution facilities demand charge, per kilowatt: two dollars and fifty cents ($2.50). (4) Energy charge, per kilowatt hour: a. During the summer season billing months of June, July and August: four and four one-hundredths cents ($0.0404). b. During the non-summer season billing months of January through May and September through December: three and eighty-eight one- hundredths cents ($0.0388). c. The meter reading date shall generally determine the summer season billing months; however, no customer shall be billed more than three (3) full billing cycles at the summer rate. Page 33 (5) In lieu of taxes and franchise: a charge at the rate of six and zero-tenths (6.0) percent of all monthly service charges billed pursuant to this Section. (1) Fixed Charge Per account $39.47 (2) Coincident demand charge a. summer season billing months of June, July and August Per kW $11.33 b. non-summer season billing months of January through May and September through December Per kW $7.91 c. The meter reading date shall generally determine the summer season billing months; however, no customer shall be billed more than three (3) full billing cycles at the summer rate. (3) Distribution facilities charge Per kW $2.50 (4) Energy charge a. Summer season billing months of June, July, and August Per kWh $0.0422 b. Non-summer season billing months of January through May and September through December Per kWh $0.0405 c. The meter reading date shall generally determine the summer season billing months; however, no customer shall be billed more than three (3) full billing cycles at the summer rate. (5) Payment in lieu of taxes (PILOT) and franchise. A charge based on all monthly service charges billed pursuant to this Section 6 percent (d) Renewable resource. Renewable energy resources, including, but not limited to, energy generated by the power of wind, may be offered on a voluntary basis to customers at a premium of two and four-tenths cents ($0.024) per kilowatt hour. The utility may establish and offer voluntary programs designed to increase and enhance the use of energy generated by renewable energy resources in support of Council-adopted policy applicable to the utility. Per kWh $0.024 (e) Standby service charges. Standby service, if available, will be provided on an annual contract basis at a level at least sufficient to meet probable service demand (in kilowatts) as determined by the customer and approved by the utility at the following rates according to the following: (1) Standby distribution charge. a. The mMonthly standby distribution charge shall be two dollars and twenty-two cents ($2.22) per kilowatt of contracted standby service. This charge shall be in lieu of the distribution facilities charge. For all metered kilowatts in excess of the contracted amount, the standby distribution charge shall be six dollars and sixty-six cents ($6.66) per kilowatt. Page 34 Contracted standby service, this charge shall be in lieu of the distribution facilities charge. Per kW $2.22 For all metered kilowatts in excess of the contracted amount Per kW $6.66 b. In the event the contractual kilowatt amount is exceeded, the beginning date of the contract period will be reset. The first month of the new contract period will become the current billing month and such month's metered demand shall become the minimum allowable contract demand for the standby service. Requests for standby service may be subject to a waiting period. An operation and maintenance charge may be added for special facilities required to provide standby service. (2) Standby generation and transmission charge. All charges incurred by the utility under the Platte River Power Authority's applicable tariffs, as may be amended from time to time, will be billed to the customer as a standby generation and transmission charge. . . . (s) Net metering. (1) Net metering service is available to a customer-generator producing electric energy exclusively with a qualifying facility using a qualifying renewable technology when the generating capacity of the customer-generator's qualifying facility meets the following two (2) criteria: a. the qualifying facility is sized to supply no more than one hundred twenty (120) percent of the customer-generator's average annual electricity consumption at that site, including all contiguous property owned or leased by the customer-generator, without regard to interruptions in contiguity caused by easements, public thoroughfares, transportation rights-of-way or utility rights-of-way; and b. the rated capacity of the qualifying facility does not exceed the customer-generator's service entrance capacity. (2) The energy generated by an on-site qualifying facility and delivered to the utility's electric distribution facility shall be used to offset energy provided by the utility to the customer-generator during the applicable billing period. (3) The customer-generator and electric service arrangements shall be subject to the requirements and conditions described in the City of Fort Collins Utility Services Interconnection Standards for Generating Facilities Connected to the Fort Collins Distribution System. (4) A customer-generator who receives approval from the electric utility to obtain net metering service shall be subject to the monthly rates described above for this rate schedule. (5) The customer-generator's consumption of energy from the utility shall be measured on a monthly basis and, in the event that the qualifying facility has Page 35 produced more electricity than the customer-generator has consumed, the customer-generator shall receive a monthly credit for such production. During the second calendar quarter of each year, the customer-generator shall receive payment for the net excess generation accrued for the preceding twelve (12) months. The credit per kilowatt hour for the energy delivered to the electric utility under this provision shall be provided at the summer season energy charge as specified in Subsection (c) of this Section. The customer-generator's consumption of energy from the utility and production of energy that flows into the utility's distribution system shall be measured on a monthly basis. The energy consumed from the utility by the customer-generator shall be billed at the applicable rate as outlined in Subsection (c) of this Section. The energy produced by the customer- generator shall be credited to the customer monthly as follows: a. Summer season energy credit Per kWh $0.0422 Section 8. That Section 26-471 (b) and (f) of the Code of the City of Fort Collins are hereby amended to read as follows: Sec. 26-471. Special area floodlighting, schedule FL. . . . (b) Monthly rate. The monthly rates (including a six-and-zero-tenths-(6) percent charge in lieu of taxes and franchise) are as follows: (1) Charge per lamp, mercury vapor: a. One-hundred-seventy-five-watt: sixteen dollars and ninety-three cents ($16.93). b. Two-hundred-fifty-watt: nineteen dollars and ninety-four cents ($19.94). c. Four-hundred-watt: twenty-six dollars and fourteen cents ($26.14). a. One-hundred-seventy-five (175) watt $16.93 b. Two-hundred-fifty (250) watt $19.94 c. Four-hundred (400) watt $26.14 (2) Charge per lamp, high-pressure sodium: a. Seventy-watt: seven dollars and fifteen cents ($7.15). b. One-hundred-watt: ten dollars and twelve cents ($10.12). c. One-hundred-fifty-watt: sixteen dollars and one cent ($16.01). d. Two-hundred-fifty-watt: twenty dollars and forty-one cents ($20.41). e. Four-hundred-watt: twenty-six dollars and ninety-six cents ($26.96). Page 36 a. Seventy (70) watt $7.15 b. One-hundred (100) watt $10.12 c. One-hundred-fifty (150) watt $16.01 a. Two-hundred-fifty (250) watt $20.41 b. Four-hundred (400) watt $26.96 … (f) Contract period and conditions (1) Those desiring floodlighting service shall sign a service contract at the electric utility office. This contract may be terminated at the end of any billing period upon ten (10) days' written notice to the City. (2) Under this schedule the utility will own, install, operate and maintain standard area lighting equipment. Materials, installation and associated line extension costs shall be paid by the customer to the utility. Upon termination of service to the lights installed after January 1, 1980, the salvage value of recoverable materials less removal expenses will be refunded to the consumer. (32) The lamps shall be controlled by automatic control equipment and burning time shall be from approximately thirty (30) minutes after sunset to approximately thirty (30) minutes before sunrise. (43) The customer shall notify the utility of any operational failure of the lamp. Lamp replacements or repairs will be performed only during regular working hours. Section 9. That Sections 26-472 (c) of the Code of the City of Fort Collins are hereby amended to read as follows: Sec. 26-472. Traffic signal service, schedule T. … (c) Monthly rate. The monthly rates (including a six-and-zero-tenths-(6) percent charge in lieu of taxes and franchise) shall be the sum of the following charges are as follows: (1) Fixed charge, per account: seventy-three dollars and sixteen cents ($73.16). (2) Charge, per kilowatt hour: six and fifty-nine one-hundredths cents ($0.0659). (3) Service extensions and signal installations made by the utility shall be paid for by the City General Fund, subject to material and installation costs at the time of installation. Page 37 (1) Fixed Charge Per account $73.16 (2) Energy Charge Per kWh $0.0680 (3) Service extensions and signal installations made by the utility shall be paid for by the City General Fund, subject to material and installation costs at the time of installation. Section 10. That Sections 26-476 of the Code of the City of Fort Collins is hereby amended to read as follows: Sec. 26-476. Public electric vehicle charging station service user fees. (a) Availability. Designated electric vehicle charging stations will be made available by the Electric Utility for public use within the corporate limits of the City at the user rates set forth in this Section. (b) Applicability. The fees set forth in this Section shall apply to all public electric vehicle charging stations owned and operated by the Electric Utility. (c) User fee rates. Public electric vehicle charging station service user fees (including six-and-zero-tenths-percent charge in lieu of taxes and franchise) will be provided and billed on a per-session basis as follows: (1) Level 2 - 240 volt charging: One dollar and zero cents ($1.00) per one- hour charging session. (2) Level 3 - 480 volt DC Quick Charging: Three dollars and zero cents ($3.00) per charging session. (1) Level 2 - 240 volt charging, per one-hour charging session $1.00 (2) Level 3 - 480 volt DC Quick Charging, per charging session (not necessarily based on one-hour increments) $3.00 (d) Payment of fees. Payment for electric vehicle charging station services will be collected directly from the customer at the point of service (the charging station or City facility at which the charging station is located) through credit card or other payment processing service. Section 11. That the amendments herein are effective and shall go into effect as follows: A. Amended GS50 & GS750 schedule rates shall apply to all electricity used on or after January 1, 2016; Page 38 B. Amended TOU Pilot Study schedule rates shall apply to all electricity used on or after January 1, 2016; and C. All other amended schedule rates shall apply to all bills issued on the basis of meter readings on or after January 1, 2016. Introduced, considered favorably on first reading, and ordered published this 3rd day of November, A.D. 2015, and to be presented for final passage on the 17th day of November, A.D. 2015. __________________________________ Mayor ATTEST: _______________________________ City Clerk Passed and adopted on final reading on the 17th day of November, A.D. 2015. __________________________________ Mayor ATTEST: _______________________________ City Clerk - 1 - ORDINANCE NO. 141, 2015 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 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, City Council has determined that new development should pay its proportionate share of the capital costs for new or modified electric service connections in the form of the Electric Capacity Fee and Building Site Charge (hereinafter “Electric Development Fees”) described at Sections 26-474 and 26-475 of the City Code; and WHEREAS, the City Manager and Electric Utility staff recommend the City Code be modified to clarify how Electric Development Fees are set and collected, as well as to update the rates to reflect increases in the operational facility capital costs required to provide new or modified electric service connections; and WHEREAS, the City Manager and City staff have recommended to City Council an adjustment of the scope of the Electric Development Fees imposed by City Code Sections 26- 474 and 26-475 to permit inclusion in its calculation of the City’s quantifiable and reasonable growth-related costs for impacts to Utilities Services’ capital administrative facilities that are reasonably related to the overall cost of and required in providing electric services to serve new development, as permitted by Colorado law. WHEREAS, Utilities staff have also identified formatting and maintenance updates to the City Code to improve the clarity with which Electric Development Fees are explained; and WHEREAS, the Energy Board considered the proposed Electric Development Fees and language clarifications for 2016 at its October 3, 2015, meeting and recommended approval of the fee changes and City Code updates; and WHEREAS, the City Manager and staff have recommended to the City Council the following Electric Development Fee adjustments and City Code language clarifications for all new or modified electric service connections requested on or after January 1, 2016; and WHEREAS, based on the foregoing, it is the desire of the City Council to amend Chapter 26 of the City Code to revise the Electric Development Fees. 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. - 2 - Section 2. That Section 26-473 (b) of the Coe of the City of Fort Collins is hereby amended to read as follows: Sec. 26-473. - Electric development fees and charges. . . . (b) The ECF shall be based upon and used to defray growth-related capital expansion costs of substations and distribution infrastructure and related facilities, and actual costs that have been or will be incurred by the utility to plan and provide service loads to new development, as more specifically described in this Division. These costs shall include the cost of labor and materials to install substation transformers, distribution transformers, primary cable, vaults, conduit, connections, switches, fuses, circuit breakers and other infrastructure and may include capital costs of administrative facilities that are reasonably related to the overall cost of and required in providing electric services to serve new development. The ECF shall vary with the electrical capacity requirements, lot size and lineal feet of dedicated roadway, and shall be based on the actual cost of construction of any required off-site improvements. The parameters and rates shall be reviewed annually by the City Manager, and the fees shall be presented to the City Council for approval no less frequently than biennially. . . . Section 3. That Section 26-474 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"), calculated as set forth in this Section and representing the cost to construct the electric distribution system infrastructure for a new or modified residential service shall be paid prior to the scheduling of any construction work required to provide said service. The ECF shall be determined based upon the most current construction information the main disconnect size (not fuse sizing) and the ECF charges in effect at the time of full payment. (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. - 3 - (b) The ECF shall be the total of the site footage charge, dwelling charge and systems modification charge, to be determined as follows: (1) The site footage charge shall be the combined total of: a. five and one hundred twenty-one thousandths cents ($0.05121) per square foot of developed site square footage, including all applicable tracts but excluding the area of dedicated public rights-of-way and excluding areas dedicated to the City as parkland, however, specific areas within City owned parks that require electric service will be charged; and b. ten dollars and thirty-six cents ($10.36) per lineal foot of the developed site abutting a dedicated street or roadway. a. Per square foot of developed site square footage, including all applicable tracts but excluding the area of dedicated public rights-of-way and excluding areas dedicated to the City as parkland, however, specific areas within City owned parks that require electric service will be charged $0.05186 b. Plus, per lineal foot of the developed site abutting a dedicated street or roadway $10.39 (2) The dwelling unit charge shall be as follows: a. For a single-family panel size with one-hundred-fifty-amp service (nonelectric heat), one thousand four hundred and four dollars ($1,404.00) per dwelling unit; b. For a single-family panel size with two-hundred-amp service or with one- hundred-fifty-amp service (electric heat), two thousand three hundred thirty-four dollars ($2,334.00) per dwelling unit; c. For a multi-family panel size with one-hundred-fifty-amp service (nonelectric heat), nine hundred thirty-six dollars ($936.00) per dwelling unit; d. For a multi-family panel size with two-hundred-amp service or with one- hundred-fifty-amp service (electric heat), one thousand six hundred forty-three dollars ($1,643.00) per dwelling unit. a. For a single-family panel size with one-hundred-fifty (150) amp service (nonelectric heat), per dwelling unit $1,408 b. For a single-family panel size with two-hundred (200) amp service or with one-hundred-fifty (150) amp service with electric heat, per dwelling unit $2,283 c. For a multi-family panel size with one-hundred-fifty (150) amp service (nonelectric heat), per dwelling unit $939 - 4 - d. For a multi-family panel size with two-hundred (200) amp service or with one-hundred-fifty (150) amp service with electric heat, per dwelling unit $1,612 (3) A system modifications charge will apply when a new or modified service will require infrastructure in addition to or different from the standard base electrical system model. The differential costs associated with such system modifications will be included in the calculated ECF. (c) 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 Service Standards. 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. (d) A Building Site Charge ("BSC") for any new or modified residential service shall consist of the total of the applicable charges as described in this Subsection (cd), and shall be paid as specified herein. (1) When any new or modified multi-family service requires extending primary circuitry to an on-site transformer, this component of the BSC charge shall be invoiced and paid in the same manner and at the same time as the ECF is invoiced and paid pursuant to Subsection (a) of this Section 26-474(a), and shall be the total of the primary circuit charge, transformer installation charge and any additional charges. The amounts shall be the same as the BSC for nonresidential development, as shown in Section 26-475(cd). (2) When any new or modified residential service requires installation by the Utility of secondary service the BSC shall include a secondary service charge (SSC), and shall be paid at the time of building permit and based upon the current rates as of the time of issuance of the building permit. The SSC shall be the total of the secondary service charges, determined as follows: a. The secondary service charge shall be as follows: Secondary Service Size Charge (up to 65 feet) Plus Per-Foot Charge for Each Foot Over 65 1/0 service $680.00$682.00 $4.98$4.99/Foot 4/0 service $819.00$806.00 $5.72$5.63/Foot - 5 - 350 kCM Service $919.00$912.00 $7.29$7.23/Foot 1/0 Mobile Home Service $531.00$532.00 N/A 4/0 Mobile Home Service $647.00$638.00 N/A (3) Actual special costs to the utility of installation of primary or secondary service resulting from site conditions shall be included in the BSC as additional charges. Such conditions may include, but are not limited to, frozen or rocky soil, concrete cutting and asphalt replacement. Section 4. That Section 26-475 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"), calculated as set forth in this Section and representing the cost to construct the 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 the main disconnect size (not fuse sizing) and the ECF charges in effect at the time of full payment. The customer shall also be responsible for secondary service installation from the point of delivery to the service panel. (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. (b) The ECF shall be the total of the site footage charge, kVA service charge and systems modification charge, to be determined as follows: (1) The site footage charge shall be the combined total of: - 6 - a. five and one hundred twenty-one thousandths cents ($0.05121) per square foot of developed site square footage, including all applicable tracts but excluding the area of dedicated public rights-of-way and excluding areas dedicated to the City as parkland, however, specific areas within City owned parks that require electric service will be charged; and b. forty dollars and twenty-one cents ($40.21) per lineal foot of the developed site abutting a dedicated street or roadway. a. Per square foot of developed site square footage, including all applicable tracts but excluding the area of dedicated public rights-of-way and excluding areas dedicated to the City as parkland, however, specific areas within City owned parks that require electric service will be charged $0.05186 b. Plus, per lineal foot of the developed site abutting a dedicated street or roadway $38.80 (2) The kVA service charge shall be determined as follows. a. For customer electric loads served by the utility the kVA service charge shall be: 1. Utility-owned transformers: the kVA service charge shall be sixty-three dollars and fifty-three cents ($63.53) per kilovolt- amp (kVA) of service load rating. 2. Customer owned transformers: the kVA service charge shall be fifty-four dollars and thirty-five cents ($54.35) per kilovolt-amp (kVA) of service load rating. 1. Utility-owned transformers: the kVA service charge per kilovolt-amp (kVA) of service load rating as determined by main disconnect size (not fuse sizing). $70.31 2. Customer owned transformers: the kVA service charge per kilovolt-amp (kVA) of service load rating. $61.13 b. For the utility to receive customer generation in excess of the customer's electric service provided by the utility, the following KVA service charge will also apply: 1. Utility-owned transformers: the kVA service charge shall be fifty-four dollars and thirty-five cents ($54.35) per kilovolt-amp (kVA) of generation service rating in excess of the service load rating as paid per subparagraph (2)a.1. above. Such ratings shall be determined by the Utilities Executive Director. - 7 - 2. Customer owned transformers: the kVA service charge shall be forty-three dollars and eighty-five cents ($43.85) per kilovolt-amp (kVA) of generation service rating in excess of the service load rating paid per subparagraph (2)a.2. above. Such ratings shall be determined by the Utilities Executive Director. 1. Utility-owned transformers: the kVA service charge per kilovolt-amp (kVA) of generation service rating in excess of the service load rating as paid per Subsection (b)(2)a.1. Such ratings shall be determined by the Utilities Executive Director. $61.13 2. Customer owned transformers: the kVA service charge per kilovolt-amp (kVA) of generation service rating in excess of the service load rating paid per Subsection (b)(2)a.2. Such ratings shall be determined by the Utilities Executive Director. $43.63 (3) A system modifications charge will apply when a new or modified service will require infrastructure in addition to or different from the standard base electrical system model. The differential costs associated with such system modifications will be included in the calculated ECF. (c) 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 Service Standards. 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. (d) A Building Site Charge ("BSC") for extending primary circuitry to the transformer for any new or modified nonresidential service shall be invoiced and paid in the same manner and at the same time as the ECF is invoiced and paid pursuant to Subsection (a) of this Section 26-475(a). The BSC shall be the total of the primary circuit charge, transformer installation charge and any additional charges, determined as follows: (1) The primary circuit charge for service from the utility source to the transformer shall be as follows: a. for single-phase service, a charge of nine dollars and fifty-five cents ($9.55) per foot of primary circuit; b. for three-phase service, a charge of eighteen dollars and thirty- eight cents ($18.38) per foot of primary circuit. a. For single-phase service, per foot of primary circuit $9.45 b. For three-phase service, per foot of primary circuit $17.76 - 8 - (2) The transformer installation charge shall be as follows: a. for single-phase service, a charge of one thousand three hundred eighty-nine dollars ($1,389.00) per transformer; b. for three-phase service, a charge of two thousand four hundred fifty-eight dollars ($2,458.00) per transformer. a. For single-phase service, per transformer $1,387.00 b. For three-phase service, per transformer $2,432.00 (3) Actual special costs to the utility of installation of service resulting from site conditions shall be included in the BSC as additional charges. Such conditions may include, but are not limited to, frozen or rocky soil, concrete cutting and asphalt replacement. (e) In lieu of fee structures set out in this the ECF and BSC based on Subsections (a), (b), and (d), the ECF and BSC for any new nonresidential service exceeding five thousand (5,000) kilowatts in size will be determined on a case-by-case basis so as to recover the direct and indirect costs associated with extending primary circuitry to the user's point of delivery. Section 5. That the modifications set forth above shall be effective for all fees paid on or after January 1, 2016. Introduced, considered favorably on first reading, and ordered published this 3rd day of November, 2015, and to be presented for final passage on the 17th day of November, A.D. 2015. __________________________________ Mayor ATTEST: _____________________________ City Clerk Passed and adopted on final reading on this 17th day of November, A.D. 2015. - 9 - __________________________________ Mayor ATTEST: _____________________________ City Clerk - 1 - ORDINANCE NO. 142, 2015 OF THE COUNCIL OF THE CITY OF FORT COLLINS AMENDING CHAPTER 26 OF THE CODE OF THE CITY OF FORT COLLINS TO REVISE WATER RATES, FEES, AND CHARGES WHEREAS, the City Council is empowered and directed by Article XII, Section 6 of the Charter of the City of Fort Collins, to by ordinance from time to time fix, establish, maintain and provide for the collection of such rates, fees or charges for utility services furnished by the City as will produce revenues sufficient to pay the costs, expenses, and other obligations as set forth therein; and WHEREAS, Article III, Chapter 26 of the City Code establishes the water utility as a utility service furnished by and an enterprise of the City; and WHEREAS, City Code Sections 26-127 and 26-129 concern various water-related rates, fees, and charges; and WHEREAS, City Code Section 26-118 requires that the City Manager to analyze the operating and financial records of the utility during each calendar year and recommend to the City Council user rates or adjustments to be in effect for the following year; and WHEREAS, the City Manager and City staff have also recommended to the City Council adjustment of the water-related rates, fees, and charges as set forth herein to be effective January 1, 2016; and WHEREAS, the Water Board considered the proposed water-related rates, fees, and charges adjustments for 2016 at its meeting on September 17, 2015 and recommended approval of the proposed adjustments by a unanimous vote; and WHEREAS, based on the foregoing, City Council desires to amend Chapter 26 of the City Code to adjust the scope and rate of the water-related rates, fees, and charges as set forth herein. 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 26-127 of the Code of the City of Fort Collins is hereby amended to read as follows: Sec. 26-127. Schedule B, meter rates. (a) Residential Rates. - 2 - (1) Residential customers with one (1) dwelling unit shall pay the sum of the following changes:. a. Base charge. Residential customers with one (1) dwelling unit shall pay a base monthly charge of fifteen dollars and forty- one cents ($15.41). b. Quantity charge. Residential customers with one (1) dwelling unit shall pay a monthly quantity charge as follows: For the first seven thousand (7,000) gallons used per month, a charge of two dollars and thirty-eight and six- tenths cents ($2.386) per one thousand (1,000) gallons. For the next six thousand (6,000) gallons used per month, a charge of two dollars and seventy-four and two-tenths cents ($2.742) per one thousand (1,000) gallons. For all additional gallons used per month, a charge of three dollars and fifteen and four-tenths cents ($3.154) per one thousand (1,000) gallons. a. Base monthly charge for residential customers with one (1) dwelling unit $15.41 b. Quantity monthly charge for residential customers with one (1) dwelling unit Tier 1 - For the first seven thousand (7,000) gallons used per month, per one thousand (1,000) gallons $2.386 Tier 2 - For the next six thousand (6,000) gallons used per month, per one thousand (1,000) gallons $2.742 Tier 3 - For all additional gallons used per month, per one thousand (1,000) gallons $3.154 (2) Residential customers with two (2) dwelling units shall pay the sum of the following charges:. a. Base charge. Residential customers with two (2) dwelling units shall pay a base monthly charge of sixteen dollars and thirty- one cents ($16.31). b. Quantity charge. Residential customers with two (2) dwelling units shall pay a monthly quantity charge as follows: - 3 - For the first nine thousand (9,000) gallons used per month, a charge of two dollars and seven and one-tenth cents ($2.071) per one thousand (1,000) gallons. For the next four thousand (4,000) gallons used per month, a charge of two dollars and thirty-eight cents ($2.380) per one thousand (1,000) gallons. For all additional gallons used per month, a charge of two dollars and seventy-three and nine-tenths cents ($2.739) per one thousand (1,000) gallons. a. Base monthly charge for residential customers with two (2) dwelling units $16.31 b. Quantity monthly charge for residential customers with two (2) dwelling units Tier 1 - For the first nine thousand (9,000) gallons used per month, per one thousand (1,000) gallons $2.071 Tier 2 - For the next four thousand (4,000) gallons used per month, per one thousand (1,000) gallons $2.380 Tier 3 - For all additional gallons used per month, per one thousand (1,000) gallons $2.739 (3) Residential customers with more than two (2) dwelling units shall pay the sum of the following charges:. a. Base Charge. Residential customers with more than two (2) dwelling units shall pay a base monthly charge of eleven dollars and seventy-two cents ($11.72) for the first dwelling unit and three dollars and ninety cents ($3.90) for the second and each additional dwelling unit. b. Quantity charge. Residential customers with more than two (2) dwelling units shall pay a monthly quantity charge of one dollar and seventy and three-tenths cents ($1.703) per one thousand (1,000) gallons used in the winter season months of November through April. They shall pay a monthly quantity charge of two dollars and twelve and nine-tenths cents ($2.129) per one thousand (1,000) gallons used in the summer season months of May through October. The meter reading date shall generally determine the seasonal monthly quantity charge; however, no customer shall be billed more than six (6) full billing cycles at the summer quantity charge. a. Base monthly charge for residential customers with more than two (2) dwelling units First dwelling unit $11.72 - 4 - Second and each additional dwelling unit $3.90 b. Quantity monthly charge for residential customers with more than two (2) dwelling units Winter - per one thousand (1,000) gallons used in the winter season months of November through April $1.703 Summer - per one thousand (1,000) gallons used in the summer season months of May through October $2.129 The meter reading date shall generally determine the seasonal monthly quantity charge; however, no customer shall be billed more than six (6) full billing cycles at the summer quantity charge. (b) Nonresidential Rates. (1) Base charge. Nonresidential, except for special users as described in Subsection 26-127(c) below, customers shall pay a base monthly charge based on meter size as follows: Meter Size (inches) Monthly Base Charge ¾ $ 13.63 1 38.03 1½ 103.41 2 155.85 3 237.70 4 373.17 6 723.91 8 1,278.85 (2) Quantity charges. Nonresidential customers shall pay monthly charges as follows: shall pay a monthly quantity charge of one dollar and eighty-nine and seven-tenths cents ($1.897) per one thousand (1,000) gallons used in the winter season months of November through April. They shall pay a monthly quantity charge of two dollars and thirty-seven cents ($2.370) per one thousand (1,000) gallons used in the summer season months of May through October. The meter reading date shall generally determine the seasonal monthly quantity charge; however, no - 5 - customer shall be billed more than six (6) full billing cycles at the summer quantity charge. Winter - per one thousand (1,000) gallons used in the winter season months of November through April $1.897 Summer - per one thousand (1,000) gallons used in the summer season months of May through October $2.370 The meter reading date shall generally determine the seasonal monthly quantity charge; however, no customer shall be billed more than six (6) full billing cycles at the summer quantity charge. (3) Charges for excess use. Nonresidential customers shall also pay Mmonthly water use charges in excess of the amounts specified in the following table: shall be billed at two dollars and seventy-two and five- tenths cents ($2.725) per one thousand (1,000) gallons used in the winter season months of November through April. Monthly water use in excess of the amounts specified below shall be billed at three dollars and forty and eight-tenths cents ($3.408) per one thousand (1,000) gallons used in the summer season months of May through October. The meter reading date shall generally determine the seasonal billing excess quantity charge; however, no customer shall be billed more than six (6) full billing cycles at the summer excess quantity charge. . Winter - per one thousand (1,000) gallons used in the winter season months of November through April $2.725 Summer - per one thousand (1,000) gallons used in the summer season months of May through October $3.408 The meter reading date shall generally determine the seasonal monthly quantity charge; however, no customer shall be billed more than six (6) full billing cycles at the summer quantity charge. Meter Size (inches) Specified Amount (gallons per month) ¾ 100,000 1 300,000 - 6 - 1½ 625,000 2 1,200,000 3 1,400,000 4 2,500,000 (c) High Volume Industrial Rates. High volume industrial rates apply to any customer with an average daily demand in excess of two million (2,000,000) gallons per day. The specific rate for any qualifying customer shall be based upon the applicable peaking factor for that customer as follows: Peaking Factor Monthly Charge per Thousand Gallons 1.00—1.09 $1.490 1.10—1.19 1.540 1.20—1.29 1.590 1.30—1.39 1.640 1.40—1.49 1.690 1.50—1.59 1.740 1.60—1.69 1.790 1.70—1.79 1.840 1.80—1.89 1.890 1.90—1.99 1.950 > 2.00 2.000 - 7 - (d) Service outside the City. The monthly charge for water taken through a meter by a user outside the City limits shall be the same as for like service within the City limits as specified in Subsections (a) and (b) of this Section. (e) Rates by special water services agreement. The rate structure and associated charges for water service pursuant to a special water services agreement approved by the City Council pursuant to § 26-130 shall be as set forth in said agreement. Section 3. 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. (a) Connection fees and service charges shall be as set forth in Subsection 26-712(b). (b) The fire hydrant fees and charges shall be as follows: (1) For installation of meter: $43.00 (2) For removal of meter: 43.00 (3) For daily rental for meter and fittings: 8.60 (4) For water service rate per one thousand (1,000) gallons water used: 6.00 A deposit may be required in the amount of the charges for the anticipated water usage and rental. (c) The fees and requirements for raw water shall be as follows: (1) To satisfy raw water requirements (RWR) with in-lieu cash payments, the rate per acre-foot of RWR is sixty-five hundred dollars ($6,500.00). (2) Excess Water Use Surcharge assessed on commercial and irrigation taps when water use is in excess of the applicable annual allotment shall be three dollars and six cents ($3.06) per one thousand (1,000) gallons. (3) The annual water allotment, based on the minimum RWR shall be as follows: Meter Size (inches) Annual Allotment (gallons/year) ¾ 293,270 1 977,550 1½ 1,955,110 - 8 - 2 3,128,170 Above 2 325,851 gallons per acre foot RWR The following fees and service charges shall be paid by water users, whether inside or outside the City limits: (a) Connection fees and service charges shall be as set forth in Subsection 26-712(b). (b) The fire hydrant fees and charges shall be as follows: (1) For installation of meter Per meter $43.00 (2) For removal of meter Per meter $43.00 (3) For daily rental for meter and fittings Per meter $8.60 (4) For water service Per 1,000 gallons $6.00 A deposit may be required in the amount of the charges for the anticipated water usage and rental. (c) The fees and requirements for raw water shall be as follows (1) To satisfy raw water requirements (RWR) with in-lieu cash payments Per acre-foot of RWR $6,500.00 (2) Excess Water Use Surcharge assessed on commercial and irrigation taps when water use is in excess of the applicable annual allotment Per 1,000 gallons $3.06 (3) The annual water allotment, based on the minimum RWR shall be as follows: Meter Size (inches) Annual Allotment (gallons/year) ¾ 293,270 1 977,550 1½ 1,955,110 2 3,128,170 Above 2 325,851 gallons - 9 - per acre foot RWR Section 4. That the modifications set forth above shall be effective for meter readings on or after January 1, 2016, and in the case of fees not based on meter readings, shall be effective for all fees paid on or after January 1, 2016. Introduced, considered favorably on first reading, and ordered published this 3rd day of November, 2015, and to be presented for final passage on the 17th day of November, A.D. 2015. __________________________________ Mayor ATTEST: _____________________________ City Clerk Passed and adopted on final reading on this 17th day of November, A.D. 2015. __________________________________ Mayor ATTEST: _____________________________ City Clerk - 1 - ORDINANCE NO. 143, 2015 OF THE COUNCIL OF THE CITY OF FORT COLLINS AMENDING CHAPTER 26 OF THE CODE OF THE CITY OF FORT COLLINS TO REVISE WATER PLANT INVESTMENT FEES WHEREAS, the City Council is empowered and directed by Article XII, Section 6 of the Charter of the City of Fort Collins, to by ordinance from time to time fix, establish, maintain and provide for the collection of such rates, fees or charges for utility services furnished by the City as will produce revenues sufficient to pay the costs, expenses, and other obligations as set forth therein; and WHEREAS, Article III, Chapter 26 of the City Code establishes the water utility as a utility service furnished by and an enterprise of the City; and WHEREAS, City Code Sections 26-120 and 26-128 provide for water plant investment fees (“WPIFs”) to be based on and used for growth-related capital expansion costs of water supply, storage, transmission, treatment and distribution facilities, and related factors; and WHEREAS, City Code Section 26-120 further requires that the City Manager annually review the parameters and rates of the WPIFs and also requires that the City Manager present such fees to the City Council for approval no less frequently than biennially; and WHEREAS, the City Manager and City staff have recommended to City Council adjustment of the scope of the WPIFs imposed by City Code Sections 26-120 and 26-128 to include in its calculation the City’s quantifiable and reasonable growth-related costs for impacts to Utilities Services’ capital administrative facilities that are reasonably related to the overall cost of and required in providing water services to serve new development, as permitted by Colorado law; and WHEREAS, the City Manager and City staff have also recommended to the City Council adjustment of the WPIFs as set forth herein to be effective January 1, 2016; and WHEREAS, the Water Board considered the proposed WPIFs adjustments for 2016 at its meeting on September 17, 2015 and recommended approval of the proposed adjustments by a unanimous vote; and WHEREAS, based on the foregoing, City Council desires to amend Chapter 26 of the City Code to adjust the scope and rate of the WPIFs as set forth herein. 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. - 2 - Section 2. That Section 26-120(b) of the Code of the City of Fort Collins is hereby amended to read as follows: Sec. 26-120. - Water plant investment fees. . . . (b) The WPIF shall be based on and used for growth-related capital expansion costs of water supply, storage, transmission, treatment, and distribution and administrative facilities andthat are reasonably related factorsto the overall cost of and required in providing water services to serve new development. The fee shall vary with the number of dwelling units and the lot area served for residential users and with the size of the water meter for nonresidential users. The parameters and rates shall be reviewed by the City Manager annually and fees shall be presented to the City Council for approval no less frequently than biennially. . . . Section 3. That Section 26-128 of the Code of the City of Fort Collins is hereby amended to read as follows: Sec. 26-128. Schedule C, water plant investment fees. The water plant investment fee prescribed in § 26-120 shall be payable by users both inside and outside of the City, as follows: (1) Single-family residential buildings: For the first three-fourths-inch water tap or meter, a fee of seven hundred twenty dollars ($720.00) for a single-family residence, plus thirty-two cents ($0.32) for each square foot of lot area. For a single-family residential lot greater than one-half (½) acre in size, the lot size shall be deemed to be one-half (½) acre for the purpose of this fee calculation. For each additional tap or meters larger than three-fourths (¾) inch, the nonresidential rate shall apply. (2) Residential buildings of two (2) or more dwelling units: For each residential building unit, a fee of five hundred forty dollars ($540.00), plus twenty-five cents ($0.25) for each square foot of lot area. The fee will provide for one (1) tap per residential building and an adequate number of additional taps to serve common irrigable areas, if any. The number and size of taps shall be determined by the Utilities Executive Director based upon the criteria established in the Uniform Plumbing Code as amended pursuant to Chapter 5 of this Code. (3) Mobile home parks: For each mobile home park, a fee of five hundred forty dollars ($540.00) for each mobile home space in the park, plus twenty-five cents ($0.25) for each square foot of lot area. The fee will provide for one (1) tap per mobile home park. The size of the tap shall be determined by the Utilities Executive Director based upon the criteria established in the Uniform Plumbing Code as amended pursuant to Chapter 5 of this Code. - 3 - (4) Hotels, rooming houses, sororities, fraternities and similar uses: The nonresidential rate shall apply. (5) Nonresidential service: a. Service to all nonresidential taps, including, but not limited to, taps for commercial and industrial service, shall be charged according to the size of the meter pursuant to the following schedule: Meter Size (inches) Nonresidential Plant Investment Fee ¾ $7,000 1 19,050 1½ 41,600 2 64,410 b. The fee for all meters larger than two (2) inches shall be calculated by multiplying the estimated peak daily demand by four dollars and fourty-three cents ($4.43)/gallons, but shall not be less than the charge for a two-inch meter. (1) Single-family residential buildings. For a single-family residential lot greater than one-half (½) acre in size, the lot size shall be deemed to be one-half (½) acre for the purpose of this fee calculation. For each additional tap or meters larger than three-fourths (¾) inch, the nonresidential rate shall apply. a. For the first three-fourths-inch water tap or meter $720.00 b. Plus, for each square foot of lot area $0.33 (2) Residential buildings of two (2) or more dwelling units The fee will provide for one (1) tap per residential building and an adequate number of additional taps to serve common irrigable areas, if any. The number and size of taps shall be determined by the Utilities Executive Director based upon the criteria established in the Uniform Plumbing Code as amended pursuant to Chapter 5 of this Code. a. For each residential building unit $540.00 b. Plus, for each square foot of lot area $0.24 (3) Mobile home parks The size of the tap shall be determined by the Utilities Executive Director based upon the criteria established in the Uniform Plumbing Code as amended pursuant to Chapter 5 of this Code. a. For each residential building unit $540.00 - 4 - b. Plus, for each square foot of lot area $0.24 (4) Hotels, rooming houses, sororities, fraternities and similar uses. The nonresidential rate shall apply. (5) Nonresidential service a. Service to all nonresidential taps, including, but not limited to, taps for commercial and industrial service, shall be charged according to the size of the meter pursuant to the following schedule: Meter Size (inches) Nonresidential Plant Investment Fee ¾ $7,180 1 $19,710 1½ $42,220 2 $66,680 b. The fee for all meters larger than two (2) inches shall be calculated by multiplying the estimated peak daily demand by the following charge per gallon, but shall not be less than the charge for a two-inch meter. $4.66 Section 4. That the modifications set forth above shall be effective for all fees paid on or after January 1, 2016. Introduced, considered favorably on first reading, and ordered published this 3rd day of November, 2015, and to be presented for final passage on the 17th day of November, A.D. 2015. __________________________________ Mayor ATTEST: _____________________________ City Clerk - 5 - Passed and adopted on final reading on this 17th day of November, A.D. 2015. __________________________________ Mayor ATTEST: _____________________________ City Clerk - 1 - OPTION A ORDINANCE NO. 144, 2015 OF THE COUNCIL OF THE CITY OF FORT COLLINS AMENDING CHAPTER 26 OF THE CODE OF THE CITY OF FORT COLLINS TO REVISE WASTEWATER RATES, FEES, AND CHARGES WHEREAS, the City Council is empowered and directed by Article XII, Section 6 of the Charter of the City of Fort Collins, to by ordinance from time to time fix, establish, maintain and provide for the collection of such rates, fees or charges for utility services furnished by the City as will produce revenues sufficient to pay the costs, expenses, and other obligations as set forth therein; and WHEREAS, Article IV, Chapter 26 of the City Code establishes the wastewater utility as a utility service furnished by and an enterprise of the City; and WHEREAS, City Code Sections 26-280, 26-282, and 26-289 concern various wastewater-related rates, fees, and charges; and WHEREAS, City Code Section 26-277 requires that the City Manager to analyze the operating and financial records of the utility during each calendar year and recommend to the City Council user rates or adjustments to be in effect for the following year; and WHEREAS, the City Manager and City staff have also recommended to the City Council adjustment of the wastewater-related rates, fees, and charges as set forth herein to be effective January 1, 2016; and WHEREAS, the Water Board considered the proposed wastewater-related rates, fees, and charges adjustments for 2016 at its meeting on September 17, 2015 and recommended approval of the proposed adjustments by a unanimous vote; and WHEREAS, based on the foregoing, City Council desires to amend Chapter 26 of the City Code to adjust the scope and rate of the water-related rates, fees, and charges as set forth herein. 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 26-280 of the Code of the City of Fort Collins is hereby amended to read as follows: Sec. 26-280. Service charges established by category. - 2 - The schedule of rates for each category described in § 26-279 shall be as follows: Category Class of Customer Rate A Single-family residential user (flat rate) $37.38 per month Single-family residential user (metered water use) $16.70 per month plus $3.245 per 1,000 gallons of either winter quarter water use or 3,000 gallons, whichever is greater. For single family customers who have not established a winter quarter water use at the service address, a system average of 4,800 gallons per month shall be billed. B Duplex (two- family) residential users (flat rate) $51.20 per month Duplex (two- family) residential users (metered water use) $18.97 per month plus $2.847 per 1,000 gallons of either winter quarter water use or 4,000 gallons, whichever is greater. For duplex customers who have not established a winter quarter water use at the service address, a system average 7,200 gallons shall be billed. C Multi-family residential user (more than two dwelling units including mobile home parks) and winter quarter based nonresidential user $3.143 per 1,000 gallons of winter quarter water use, plus a base charge of $2.47 per month per dwelling unit served. For multi-family customers who have not established a winter quarter water use at the service address, a system average of 3,400 gallons per living unit shall be billed. However, Category D rates will apply to multi-family residential units under construction during the period of service from the installation of the water meter to the date the certificate of occupancy is issued. D Minor nonresidential - 3 - (inches) ¾ or smaller $8.39 1 $19.37 1½ $38.99 2 $66.71 3 $106.58 4 $168.33 6 $737.91 8 $852.02 E and F Intermediate nonresidential user and Significant industrial user $2.908 per 1,000 gallons of water use, measured wastewater flow or winter quarter water use, whichever is applicable; plus a surcharge of $3.214 per million gallons for each milligram per liter of suspended solids in excess of 235 milligrams per liter; plus a surcharge of $2.677 per million gallons for each milligram per liter of BOD in excess of 265 milligrams per liter or a surcharge of $1.690 per million gallons for each milligram per liter of COD in excess of 400 milligrams per liter, or a surcharge of $5.003 per million gallons for each milligram per liter of TOC in excess of 130 milligrams per liter, whichever is applicable. The user shall pay this calculated amount plus the applicable base charge set forth below: Size of water meter (inches) Base charge ¾ or smaller $8.39 1 $19.37 1½ $38.99 2 $66.71 - 4 - 3 $106.58 4 $168.33 6 $737.91 8 $852.02 G User outside City limits The rate for users outside the City limits shall be the same as for like service inside the City limits as is specified in Categories A—F and H in this Section. H Special with agreement The rate pursuant to a special wastewater services agreement approved by the City Council pursuant to § 26-290 shall be set forth in said agreement. Category Class of Customer Rate A Single-family residential user (flat rate) Per month $38.31 Single-family residential user (metered water use) 1. Per month $17.12 2. Plus, per 1,000 gallons per month $3.326 Note: 1. For single family customers who have not yet established a winter quarter water use at the service address, a system average of 4,800 gallons per month shall be billed. 2. After establishment of a winter quarter water use at the service address, the monthly amount billed shall be based on a minimum of 3,000 gallons per month. B Duplex (two- family) residential users (flat rate) Per month $52.48 - 5 - Duplex (two- family) residential users (metered water use) Per month $19.44 Or, per 1,000 gallons per month, whichever is greater, to be calculated on a monthly basis $2.918 Note: 1. For duplex customers who have not yet established a winter quarter water use at the service address, a system average 7,200 gallons shall be billed. 2. After establishment of a winter quarter use at the service address, the monthly amount billed shall be based on a minimum of 4,000 gallons per month. C Multi-family residential user (more than two dwelling units including mobile home parks) and winter quarter based nonresidential user 1. Base charge per month per dwelling unit served $2.53 2. Plus, per 1,000 gallons per month $3.222 Note: 1. For multi-family customers who have not yet established a winter quarter water use at the service address, a system average of 3,400 gallons per living unit shall be billed. However, Category D rates will apply to multi-family residential units under construction during the period of service from the installation of the water meter to the date the certificate of occupancy is issued. 2. After establishment of a water quarter use at the service address, the monthly amount billed shall be per 1,000 gallons of winter quarter water use, calculated on a monthly basis. D Minor nonresidential user 1. Per 1,000 gallons of water use, measured sewage flow or winter quarter water use, whichever is applicable, to be calculated on a monthly basis, plus the following applicable base charge: $3.039 2. Size of water meter (inches) Base charge ¾ or smaller $8.77 1 $20.24 1½ $40.74 - 6 - 2 $69.71 3 $111.38 4 $175.90 6 $771.12 8 $890.36 E and F Intermediate nonresidential user and Significant industrial user User shall pay an amount calculated to include: 1. Rate per 1,000 gallons of water use, measured wastewater flow or winter quarter water use per month, whichever is applicable; $3.039 2. PLUS a surcharge per million gallons for each milligram per liter of suspended solids in excess of 235 milligrams per liter; $3.535 3. PLUS a surcharge for the following: a. per million gallons for each milligram per liter of BOD in excess of 265 milligrams per liter; or b. per million gallons for each milligram per liter of COD in excess of 400 milligrams per liter; or c. per million gallons for each milligram per liter of TOC in excess of 130 milligrams per liter, whichever is applicable. $2.945 $1.859 $5.503 The user shall pay the calculated amount based on 1, 2 and 3 above, plus the applicable base charge set forth below: Size of water meter (inches) Base charge - 7 - ¾ or smaller $8.77 1 $20.24 1½ $40.74 2 $69.71 3 $111.38 4 $175.90 6 $771.12 8 $890.36 G User outside City limits The rate for users outside the City limits shall be the same as for like service inside the City limits as is specified in Categories A—F and H in this Section. H Special with agreement The rate pursuant to a special wastewater services agreement approved by the City Council pursuant to § 26-290 shall be set forth in said agreement. Section 3. That Section 26-282(a) of the Code of the City of Fort Collins is hereby amended to read as follows: Sec. 26-282. Wastewater strength or industrial surcharges and categories established. (a) The schedule of A monthly wastewater strength surcharge forshall be paid by customers located either inside or outside the City limits shall be as followsin accordance with the following schedule: Parameter Excess over (mg/l) Rate per thousand gallons BOD 265 $0.002677 $0.002945 COD 400 $0.001690 $0.001859 TOC 130 $0.005003 $0.005503 TSS 235 $0.003214 $0.003535 - 8 - . . . 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- 2.5% - 10% per annum; to be set for new loans - 9 - related loans: 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 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 (8) Miscellaneous fees Determined on a case-by-case basis based on direct costs plus 15% indirect costs Description Basis Amount (1) Connection fees and service charges Fees shall be set forth as in Subsection 26-712(b) (2) Industrial discharge permits: a. Administration Annually $76.00 b. Surveillance (on request) Determined for each user annually, based on direct cost plus 15% indirect costs, billed monthly (3) Laboratory support services (on request) Determined on a case-by-case basis based on direct cost plus 15% indirect costs (4) Materials and labor provided by City (on request) 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: 1. Generated within Larimer County Per gallon $0.074 - 10 - 2. Generated outside Larimer County Per gallon $0.113 b. Recreational vehicle sanitary waste holding tanks: 1. Residential customers of the City of Fort Collins Wastewater Utility No charge for individual disposal at Transfer Station 2. Others 1. Base fee, plus $2.46 2. Per gallon $0.074 (6) Interest rate for wastewater service-related loans: 2.5% - 10% per annum; to be set for new loans 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 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 (8) Miscellaneous fees Determined on a case-by-case basis based on direct costs plus 15% indirect costs Section 5. That the modifications set forth above shall be effective for meter readings on or after January 1, 2016, and in the case of fees not based on meter readings, shall be effective for all fees paid on or after January 1, 2016. - 11 - Introduced, considered favorably on first reading, and ordered published this 3rd day of November, 2015, and to be presented for final passage on the 17th day of November, A.D. 2015. __________________________________ Mayor ATTEST: _____________________________ City Clerk Passed and adopted on final reading on this 17th day of November, A.D. 2015. __________________________________ Mayor ATTEST: _____________________________ City Clerk - 1 - OPTION B ORDINANCE NO. 144, 2015 OF THE COUNCIL OF THE CITY OF FORT COLLINS AMENDING CHAPTER 26 OF THE CODE OF THE CITY OF FORT COLLINS TO REVISE WASTEWATER RATES, FEES, AND CHARGES WHEREAS, the City Council is empowered and directed by Article XII, Section 6 of the Charter of the City of Fort Collins, to by ordinance from time to time fix, establish, maintain and provide for the collection of such rates, fees or charges for utility services furnished by the City as will produce revenues sufficient to pay the costs, expenses, and other obligations as set forth therein; and WHEREAS, Article IV, Chapter 26 of the City Code establishes the wastewater utility as a utility service furnished by and an enterprise of the City; and WHEREAS, City Code Sections 26-280, 26-282, and 26-289 concern various wastewater-related rates, fees, and charges; and WHEREAS, City Code Section 26-277 requires that the City Manager to analyze the operating and financial records of the utility during each calendar year and recommend to the City Council user rates or adjustments to be in effect for the following year; and WHEREAS, the City Manager and City staff have also recommended to the City Council adjustment of the wastewater-related rates, fees, and charges as set forth herein to be effective January 1, 2016; and WHEREAS, the Water Board considered the proposed wastewater-related rates, fees, and charges adjustments for 2016 at its meeting on September 17, 2015 and recommended approval of the proposed adjustments by a unanimous vote; and WHEREAS, based on the foregoing, City Council desires to amend Chapter 26 of the City Code to adjust the scope and rate of the water-related rates, fees, and charges as set forth herein. 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 26-280 of the Code of the City of Fort Collins is hereby amended to read as follows: Sec. 26-280. Service charges established by category. - 2 - The schedule of rates for each category described in § 26-279 shall be as follows: Category Class of Customer Rate A Single-family residential user (flat rate) $37.38 per month Single-family residential user (metered water use) $16.70 per month plus $3.245 per 1,000 gallons of either winter quarter water use or 3,000 gallons, whichever is greater. For single family customers who have not established a winter quarter water use at the service address, a system average of 4,800 gallons per month shall be billed. B Duplex (two- family) residential users (flat rate) $51.20 per month Duplex (two- family) residential users (metered water use) $18.97 per month plus $2.847 per 1,000 gallons of either winter quarter water use or 4,000 gallons, whichever is greater. For duplex customers who have not established a winter quarter water use at the service address, a system average 7,200 gallons shall be billed. C Multi-family residential user (more than two dwelling units including mobile home parks) and winter quarter based nonresidential user $3.143 per 1,000 gallons of winter quarter water use, plus a base charge of $2.47 per month per dwelling unit served. For multi-family customers who have not established a winter quarter water use at the service address, a system average of 3,400 gallons per living unit shall be billed. However, Category D rates will apply to multi-family residential units under construction during the period of service from the installation of the water meter to the date the certificate of occupancy is issued. D Minor nonresidential - 3 - meter (inches) ¾ or smaller $8.39 1 $19.37 1½ $38.99 2 $66.71 3 $106.58 4 $168.33 6 $737.91 8 $852.02 E and F Intermediate nonresidential user and Significant industrial user $2.908 per 1,000 gallons of water use, measured wastewater flow or winter quarter water use, whichever is applicable; plus a surcharge of $3.214 per million gallons for each milligram per liter of suspended solids in excess of 235 milligrams per liter; plus a surcharge of $2.677 per million gallons for each milligram per liter of BOD in excess of 265 milligrams per liter or a surcharge of $1.690 per million gallons for each milligram per liter of COD in excess of 400 milligrams per liter, or a surcharge of $5.003 per million gallons for each milligram per liter of TOC in excess of 130 milligrams per liter, whichever is applicable. The user shall pay this calculated amount plus the applicable base charge set forth below: Size of water meter (inches) Base charge ¾ or smaller $8.39 1 $19.37 1½ $38.99 - 4 - 2 $66.71 3 $106.58 4 $168.33 6 $737.91 8 $852.02 G User outside City limits The rate for users outside the City limits shall be the same as for like service inside the City limits as is specified in Categories A—F and H in this Section. H Special with agreement The rate pursuant to a special wastewater services agreement approved by the City Council pursuant to § 26-290 shall be set forth in said agreement. Category Class of Customer Rate A Single-family residential user (flat rate) Per month $37.87 Single-family residential user (metered water use) 1. Per month $16.92 2. Plus, per 1,000 gallons per month $3.287 Note: 1. For single family customers who have not yet established a winter quarter water use at the service address, a system average of 4,800 gallons per month shall be billed. 2. After establishment of a winter quarter water use at the service address, the monthly amount billed shall be based on a minimum of 3,000 gallons per month. B Duplex (two- family) residential users (flat Per month $52.33 - 5 - rate) Duplex (two- family) residential users (metered water use) Per month $19.39 Or, per 1,000 gallons per month $2.910 Note: 1. For duplex customers who have not yet established a winter quarter water use at the service address, a system average 7,200 gallons shall be billed. 2. After establishment of a winter quarter use at the service address, the monthly amount billed shall be based on a minimum of 4,000 gallons per month. C Multi-family residential user (more than two dwelling units including mobile home parks) and winter quarter based nonresidential user 1. Base charge per month per dwelling unit served $2.56 2. Plus, per 1,000 gallons per month $3.256 Note: 1. For multi-family customers who have not yet established a winter quarter water use at the service address, a system average of 3,400 gallons per living unit shall be billed. However, Category D rates will apply to multi-family residential units under construction during the period of service from the installation of the water meter to the date the certificate of occupancy is issued. 2. After establishment of a winter quarter use at the service address, the monthly amount billed shall be per 1,000 gallons of winter quarter water use, calculated on a monthly basis. D Minor nonresidential user 1. Per 1,000 gallons of water use, measured sewage flow or winter quarter water use, whichever is applicable, to be calculated on a monthly basis, plus the following applicable base charge: $3.091 2. Size of water meter (inches) Base charge ¾ or smaller $8.92 1 $20.59 - 6 - 1½ $41.45 2 $70.91 3 $113.29 4 $178.93 6 $784.40 8 $905.70 E and F Intermediate nonresidential user and Significant industrial user User shall pay an amount calculated to include: 1. Rate per 1,000 gallons of water use, measured wastewater flow or winter quarter water use per month, whichever is applicable; $3.091 2. PLUS a surcharge per million gallons for each milligram per liter of suspended solids in excess of 235 milligrams per liter; $3.535 3. PLUS a surcharge for the following: a. per million gallons for each milligram per liter of BOD in excess of 265 milligrams per liter; or b. per million gallons for each milligram per liter of COD in excess of 400 milligrams per liter; or c. per million gallons for each milligram per liter of TOC in excess of 130 milligrams per liter, whichever is applicable. $2.945 $1.859 $5.503 The user shall pay the calculated amount based on 1, 2 and 3 above, plus the applicable base charge set forth below: - 7 - Size of water meter (inches) Base charge ¾ or smaller $8.92 1 $20.59 1½ $41.45 2 $70.91 3 $113.29 4 $178.93 6 $784.40 8 $905.70 G User outside City limits The rate for users outside the City limits shall be the same as for like service inside the City limits as is specified in Categories A—F and H in this Section. H Special with agreement The rate pursuant to a special wastewater services agreement approved by the City Council pursuant to § 26-290 shall be set forth in said agreement. Section 3. That Section 26-282(a) of the Code of the City of Fort Collins is hereby amended to read as follows: Sec. 26-282. Wastewater strength or industrial surcharges and categories established. (a) The schedule ofA monthly wastewater strength surcharge forshall be paid by customers located either inside or outside the City limits shall be as followsin accordance with the following schedule: Parameter Excess over (mg/l) Rate per thousand gallons BOD 265 $0.002677 $0.002945 COD 400 $0.001690 $0.001859 - 8 - TOC 130 $0.005003 $0.005503 TSS 235 $0.003214 $0.003535 . . . 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 No charge for individual disposal at Transfer Station - 9 - Fort Collins Wastewater Utility Others $2.35 base fee plus $0.071 per gallon (6) Interest rate for wastewater service- related loans: 2.5% - 10% per annum; to be set for new loans 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 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 (8) Miscellaneous fees Determined on a case-by-case basis based on direct costs plus 15% indirect costs Description Basis Amount (1) Connection fees and service charges Fees shall be set forth as in Subsection 26-712(b) (2) Industrial discharge permits: a. Administration Annually $76.00 b. Surveillance (on request) Determined for each user annually, based on direct cost plus 15% indirect costs, billed monthly (3) Laboratory support services (on request) Determined on a case-by-case basis based on direct cost plus 15% indirect costs (4) Materials and labor provided by City (on request) 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: - 10 - a. Septic tanks, vaults, privies, portable toilets: 1. Generated within Larimer County Per gallon $0.074 2. Generated outside Larimer County Per gallon $0.113 b. Recreational vehicle sanitary waste holding tanks: 1. Residential customers of the City of Fort Collins Wastewater Utility No charge for individual disposal at Transfer Station 2. Others 1. Base fee $2.46 2. Plus, per gallon $0.074 (6) Interest rate for wastewater service-related loans: 2.5% - 10% per annum; to be set for new loans 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 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 (8) Miscellaneous fees Determined on a case-by-case basis based on direct costs plus 15% indirect costs Section 5. That the modifications set forth above shall be effective for meter readings on or after January 1, 2016, and in the case of fees not based on meter readings, shall be effective for all fees paid on or after January 1, 2016. - 11 - Introduced, considered favorably on first reading, and ordered published this 3rd day of November, 2015, and to be presented for final passage on the 17th day of November, A.D. 2015. __________________________________ Mayor ATTEST: _____________________________ City Clerk Passed and adopted on final reading on this 17th day of November, A.D. 2015. __________________________________ Mayor ATTEST: _____________________________ City Clerk - 1 - ORDINANCE NO. 145, 2015 OF THE COUNCIL OF THE CITY OF FORT COLLINS AMENDING CHAPTER 26 OF THE CODE OF THE CITY OF FORT COLLINS TO REVISE SEWER PLANT INVESTMENT FEES WHEREAS, the City Council is empowered and directed by Article XII, Section 6 of the Charter of the City of Fort Collins, to by ordinance from time to time fix, establish, maintain and provide for the collection of such rates, fees or charges for utility services furnished by the City as will produce revenues sufficient to pay the costs, expenses, and other obligations as set forth therein; and WHEREAS, Article IV, Chapter 26 of the City Code establishes the wastewater utility as a utility service furnished by and an enterprise of the City; and WHEREAS, City Code Sections 26-283 and 26-284 provide for sewer plant investment fees (“SPIFs”) to be based on and used for growth-related capital expansion costs of wastewater collection, transmission and treatment facilities; and WHEREAS, City Code Section 26-283 further requires that the City Manager annually review the parameters and rates of the SPIFs and also requires that the City Manager present such fees to the City Council for approval no less frequently than biennially; and WHEREAS, the City Manager and City staff have recommended to City Council adjustment of the scope of the SPIFs imposed by City Code Section 26-283 to include in its calculation the City’s quantifiable and reasonable growth-related costs for impacts to Utilities Services’ capital administrative facilities that are reasonably related to the overall cost of and required in providing wastewater services to serve new development, as permitted by Colorado law; and WHEREAS, the City Manager and City staff have also recommended to the City Council adjustment of the SPIFs as set forth herein to be effective January 1, 2016; and WHEREAS, the Water Board considered the proposed SPIFs adjustments for 2016 at its meeting on September 17, 2015 and recommended approval of the proposed adjustments by a unanimous vote; and WHEREAS, based on the foregoing, City Council desires to amend Chapter 26 of the City Code to adjust the scope and rate of the PIFs as set forth herein. 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. - 2 - Section 2. That Section 26-283(b) of the Code of the City of Fort Collins is hereby amended to read as follows: Sec. 26-283. - Sewer plant investment fees (SPIF); basis. . . . (b) The SPIF shall be based on and used for growth-related capital expansion costs of wastewater collection, transmission, and treatment and administrative facilities that are reasonably related to the overall cost of and required in providing wastewater services to serve new development. The fee shall vary with the number of dwelling units for residential users. For nonresidential users, the fee shall be based on: (1) quantity of discharge that may be determined by size of water meter or other means of accurately measuring or calculating flow quantity as approved by the Utilities Executive Director; and (2) the level of wastewater concentration of organic and solid materials. The parameters and rates shall be reviewed by the City Manager annually and fees shall be presented to the City Council for approval no less frequently than biennially. . . . Section 3. That Section 26-284 of the Code of the City of Fort Collins is hereby amended to read as follows: Sec. 26-284. - Sewer plant investment fees and surcharges established. (a) The schedule of sewer plant investment fees, subject to the exceptions and additional requirements provided in this Section, is as follows: Category SPIF A $3,090 B and C $2,470 for each dwelling unit or mobile home space Category Water meter size (inches) Fee D, E, F ¾ $ 6,550 1 $15,440 1½ $29,890 - 3 - 2 $58,790 3 and above Calculated on an individual basis based on peak wastewater flow (determined in the manner set forth hereinafter) but not less than the charge for a two-inch meter G Same as equivalent category, plus any special sanitation district fees H Determined pursuant to Subsection (d) of this Section Category SPIF A Single-family Per dwelling $3,500 B and C Duplex and Multi-family Per each dwelling unit or mobile home space $2,520 D, E, F Non-residential and Industrial Water meter size (inches) Fee Fee ¾ $7,130 1 $17,200 1½ $33,410 2 $59,140 3 and above Calculated on an individual basis based on peak wastewater flow (determined in the manner set forth hereinafter) but not less than the charge for a two- - 4 - inch meter G User outside Same as equivalent category, plus any special sanitation district fees H Special Determined pursuant to Subsection (d) of this Section . . . (d) The amount of the plant investment fee and surcharge for each nonresidential surcharged user, users in Category H and any user that is expected to generate greater than its proportionate share of peak day flow at the treatment plant for the applicable category (including both contributed wastewater volume and volume related to infiltration and inflow), shall be calculated utilizing the following formula: SPIF = Site Flow × [Flow$ + (BOD × BOD $) + (TSS × TSS$ )] + I&I Flow × [Flow$ + (200 mg/l × BOD$) + (250 mg/l × TSS $)] Where: SPIF = Plant investment fee for Category H users and users discharging wastewater with average concentrations of BOD and/or TSS which exceed those average concentrations which are set forth in § 26-282(b) under Category E-34 Site Flow = The user's proportionate share of peak day flow at the treatment plant based on site flow discharge from user's site I&I Flow = That proportionate share of peak day flow due to infiltration and inflow as allocated to user's site flow discharge. I&I Flow is calculated to be 46.5% of Site Flow. Flow$ = $6.26 per gallon (unit cost of facilities attributable to treating wastewater flow) BOD = Average BOD concentration for user category or measured BOD concentration for the user as determined in accordance with Subsection (c) of this Section, but not less than 200 mg/l BOD$ = $0.0152 per mg/l (unit cost of facilities attributable to treating BOD) - 5 - TSS = Average TSS concentration for user category or measured TSS concentration for the user as determined in accordance with Subsection (c) of this Section, but not less than 250 mg/l TSS$ = $0.0122 per mg/l (unit cost of facilities attributable to treating TSS) Where: SPIF = Plant investment fee for Category H users and users discharging wastewater with average concentrations of BOD and/or TSS which exceed those average concentrations which are set forth in § 26-282(b) under Category E-34 Site Flow = The user's proportionate share of peak day flow at the treatment plant based on site flow discharge from user's site I&I Flow = That proportionate share of peak day flow due to infiltration and inflow as allocated to user's site flow discharge. I&I Flow is calculated based on Site Flow multiplied by 46.5% Flow$ = Unit cost of facilities attributable to treating wastewater flow Per Gallon $8.76 BOD = Average BOD concentration for user category or measured BOD concentration for the user as determined in accordance with Subsection (c) of this Section, but not less than 200 mg/l BOD$ = Unit cost of facilities attributable to treating BOD Per mg/l $0.0130 TSS = Average TSS concentration for user category or measured TSS concentration for the user as determined in accordance with Subsection (c) of this Section, but - 6 - not less than 250 mg/l TSS$ = Unit cost of facilities attributable to treating TSS Per mg/l $0.0104 . . . (f) For purposes of this Section, the proportionate share of peak day flow at the treatment plant for users in Categories D, E and F shall be deemed to be: Water Meter Size (inches) Peak Flow (gallons per day) ¾ 530 510 1 1,250 1,230 1½ 2,420 2,390 2 4,760 4,230 3 and greater Calculated on an individual basis based on user's proportionate share of peak day flow at the treatment plant (including both contributed wastewater volume and volume related to infiltration and inflow) but not less than the peak day flow for a two-inch meter Section 4. That the modifications set forth above shall be effective for all fees paid on or after January 1, 2016. - 7 - Introduced, considered favorably on first reading, and ordered published this 3rd day of November, 2015, and to be presented for final passage on the 17th day of November, A.D. 2015. __________________________________ Mayor ATTEST: _____________________________ City Clerk Passed and adopted on final reading on this 17th day of November, A.D. 2015. __________________________________ Mayor ATTEST: _____________________________ City Clerk - 1 - ORDINANCE NO. 146, 2015 OF THE COUNCIL OF THE CITY OF FORT COLLINS AMENDING CHAPTER 26 OF THE CODE OF THE CITY OF FORT COLLINS TO REVISE THE STORMWATER PLANT INVESTMENT FEES WHEREAS, the City Council is empowered and directed by Article XII, Section 6 of the Charter of the City of Fort Collins, to by ordinance from time to time fix, establish, maintain and provide for the collection of such rates, fees or charges for utility services furnished by the City as will produce revenues sufficient to pay the costs, expenses, and other obligations as set forth therein; and WHEREAS, Article III, Chapter 26 of the City Code establishes the stormwater utility as a utility service furnished by and an enterprise of the City; and WHEREAS, City Council has adopted stormwater basin and City-wide master plans recommending stormwater facilities necessary to provide for proper drainage and control of flood and surface waters within the City; and WHEREAS, in 1998, City Council adopted ordinance No. 168, 1998, determining that all lands within the City benefit by the installation of such stormwater facilities; and WHEREAS, existing stormwater rate payers have paid for the design, right of way, and construction of stormwater facilities identified in the drainage basin mater plans that will benefit and be utilized by new development; and WHEREAS, City Council has determined that new development should pay its proportionate share of the costs of capital stormwater facilities in existence at the time of development in the form of a stormwater plant investment fee as established by City Code Section 26-512 (“Stormwater PIF”); and WHEREAS, City Code Section 26-511(a) requires that the City Manager review the rates and parameters for the Stormwater PIF annually and present them to City Council for approval no less frequently than biennially; and WHEREAS, on November 5, 2013, City Council adopted Ordinance No. 142, 2013, which established the Stormwater PIF now in effect; and WHEREAS, the City Manager and City staff have recommended to City Council adjustment of the scope of the Stormwater PIF imposed by City Code Section 26-512 to include in its calculation the City’s quantifiable and reasonable growth-related costs for impacts to Utilities Services’ capital administrative facilities that are reasonably related to the overall cost of and required in providing stormwater services to serve new development, as permitted by Colorado law; and - 2 - WHEREAS, the City Manager and City staff have also recommended to the City Council adjustment of the Stormwater PIF as set forth herein to be effective January 1, 2016; and WHEREAS, the Water Board considered the proposed Stormwater PIF adjustments for 2016 at its meeting on September 17, 2015 and recommended approval of the proposed adjustments by a unanimous vote; and WHEREAS, based on the foregoing, City Council desires to amend Chapter 26 of the City Code to adjust the scope and rate of the Stormwater PIF as set forth herein. 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 26-512 of the Code of the City of Fort Collins is hereby amended to read as follows: Sec. 26-512. - Stormwater plant investment fees established. There is hereby imposed on each and every lot or parcel of land within the City with respect to which any improvement creates an impervious surface covering more than three hundred fifty (350) square feet of the lot or parcel, and the owners thereof, a stormwater plant investment fee. The fee is deemed reasonable and necessary to pay for a new development's share of the existing equity in the capital stormwater facilities, including facilities associated with providing services that have been installed for the protection of the health, safety and welfare of the inhabitants of the City and the Utilities’ capital administrative facilities that are reasonably related to the overall cost of and required in providing stormwater services to serve new development. The stormwater plant investment fee established herein shall be determined using the base rate, the area of each parcel of land, and the runoff coefficient of the parcel. The Utilities Executive Director shall determine the stormwater plant investment fee that applies to each parcel of land as follows: (1) Runoff coefficient. The runoff coefficient of each parcel of land shall be that used in the engineering formula known as the rational method. The Utilities Executive Director shall determine the runoff coefficient for each parcel of land based on the following formula: Runoff coefficient = [(percent effective impervious area) × 0.95] + [(percent pervious area) × 0.20] + [(percent semipervious area) × 0.50)] The following definitions shall apply for the purpose of such formula: Percent effective impervious area shall mean the percentage of the total parcel area determined to constitute the equivalent impervious area on a parcel as calculated for the one-hundred-year, two-hour Fort Collins Design Storm as defined in Volume 1, Chapter - 3 - 4, of the Fort Collins Stormwater Criteria Manual. The determination shall be made using the procedures and methodology described in Volume 3, Sections 4 and 5, of the Stormwater Criteria Manual. Percent pervious area shall mean the percentage of the total parcel area that is pervious, such as lawn, open space or planted areas. Percent semipervious area shall mean the percentage of the total parcel area that is semipervious, such as gravel areas. (2) Plant investment fee base rate. The stormwater plant investment fee base rate is seven thousand eight hundred seventeen dollars ($7,817.00) per gross acre of area. hereby established as follows: Per gross acre of area $8,217 (3) Area. The stormwater plant investment fee calculation for each parcel of land shall be predicated upon the gross area in acres of the parcel. (4) Calculation. a. Initial improvements. The stormwater plant investment fee for each parcel of land shall be calculated in accordance with the following formula: Plant investment fee = (runoff coefficient) × (Plant investment fee base rate) × (area). b. Additions, expansions, increased impervious area. The stormwater plant investment fee calculation for each developed parcel of land upon which an addition or expansion is proposed, whether attached to an existing structure or not, shall be calculated in accordance with the following formula: Plant investment fee shall equal the difference between the fee as calculated in accordance with the formula set forth in Subparagraph a. of this Subsection for the parcel with all existing and proposed improvements and the same parcel with only the existing improvements. Section 3. That the modifications set forth above shall be effective for all fees paid on or after January 1, 2016. - 4 - Introduced, considered favorably on first reading, and ordered published this 3rd day of November, 2015, and to be presented for final passage on the 17th day of November, A.D. 2015. __________________________________ Mayor ATTEST: _____________________________ City Clerk Passed and adopted on final reading on this 17th day of November, A.D. 2015. __________________________________ Mayor ATTEST: _____________________________ City Clerk user $2.908 per 1,000 gallons of water use, measured sewage flow or winter quarter water use, whichever is applicable, plus the following applicable base charge: Size of water Base charge user $2.908 per 1,000 gallons of water use, measured sewage flow or winter quarter water use, whichever is applicable, plus the following applicable base charge: Size of water meter Base charge