HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 09/06/2016 - COUNCIL ACTION POSTPONING INDEFINITELY FIRST READIAgenda Item 5
Item # 5 Page 1
AGENDA ITEM SUMMARY September 6, 2016
City Council
STAFF
Cyril Vidergar, Assistant City Attorney
Lisa Rosintoski, Utilities Customer Connections Manager
Lance Smith, Strategic Financial Planning Manager
Randy Reuscher, Utility Rate Analyst
SUBJECT
Council Action Postponing Indefinitely First Reading of Ordinance No. 104, 2016, Making Certain Amendments
to Chapter 26 of the Code of the City of Fort Collins Pertaining to Electric, Water and Wastewater Rates, Fees
and Charges Associated with the Income Qualified Rate Pilot Study.
EXECUTIVE SUMMARY
The purpose of this item is to postpone indefinitely an Ordinance presented to Council on August 16, 2016,
and continued to the September 6, 2016 meeting, regarding a two year pilot Income-Qualified Rate (IQR).
An affirmative vote on this item will indefinitely postpone the proposed Ordinance and pilot study until such
time as further action on the program is initiated.
STAFF RECOMMENDATION
Staff recommends action by Council determining whether the proposed Ordinance approving a two-year pilot
IQR study should be postponed indefinitely.
BACKGROUND / DISCUSSION
The IQR was presented to City Council at the June 14, 2016 Work Session and the August 16, 2016 Regular
Meeting. City Council continued discussion on the matter until the September 6, 2016 Regular Meeting, and
requested additional information as follows:
Recommend specific conservation education and direct measure installation opportunities appropriate for
income-qualified customers
Recommend rate participation criteria, resulting in conservation and efficiency outcomes that customers
must manage to remain on the IQR
Feasibility of Payment Assistance Fund (PAF) customer solicited donations being used for ongoing
assistance, rather than IQR.
Based on discussions at the City Leadership Planning Team (LPT) meeting on August 29, 2016, LPT
recommended staff postpone pursuing Council approval for the IQR pilot until the Council Finance Committee
can evaluate other rate options and provide additional direction on the pilot study.
BOARD / COMMISSION RECOMMENDATION
Utilities staff presented IQR and received support from the following boards and commissions prior to the
August 16, 2016 Council meeting:
Agenda Item 5
Item # 5 Page 2
1. Affordable Housing Board (recommendation attached to Work Session AIS)
2. Water Board (recommendation attached to Work Session AIS)
3. Energy Board (recommendation attached to Work Session AIS)
4. Senior Advisory Board
5. Commission on Disability
6. Community Development Block Grant Commissions
7. Economic Advisory Committee
8. Human Relations Commission
PUBLIC OUTREACH
External stakeholder involvement has included focus groups, presentations and meetings. Stakeholder
organizations included: Chamber of Commerce, Colorado Energy Office (recommendation attached to Work
Session AIS, Larimer County Department of Human Services, Energy Outreach Colorado (recommendation
attached to Work Session AIS), Volunteers of America, United Way, Office on Aging, Catholic Charities, La
Familia/The Family Center, Discover Goodwill, Social Sustainability Grantee Training participants (26
community action agencies), Fort Collins Housing Authority, Neighbor to Neighbor, Care Housing, and multi-
family group-metered properties.
ATTACHMENTS
1. Agenda Item Summary, August 16, 2016 (w/o attachments) (PDF)
2. Ordinance No. 104, 2016 (PDF)
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AGENDA ITEM SUMMARY August 16, 2016
City Council
STAFF
Lisa Rosintoski, Utilities Customer Connections Manager
Randy Reuscher, Utility Rate Analyst
SUBJECT
First Reading of Ordinance No. 104, 2016, Making Certain Amendments to Chapter 26 of the Code of the City
of Fort Collins Pertaining to Electric, Water and Wastewater Rates, Fees and Charges Associated with the
Income Qualified Rate Pilot Study.
EXECUTIVE SUMMARY
The purpose of this item is to seek adoption of an ordinance implementing a two year Income-Qualified Rate
(IQR) pilot study, effective January 1, 2017. IQR is a discount rate structure for qualified low-income
households for electric, water, and wastewater utility services. The rate is designed to increase the adoption of
efficiency and resource conservation practices by providing affordable utility services to income-qualified
customers. In order to manage IQR administrative costs effectively and provide a convenient and accessible
application process, staff recommends partnering with the state sponsored Low-Income Energy Assistance
Program (LEAP), locally administered by Larimer County Department of Human Services, to qualify customers
for IQR. Using LEAP to qualify customers for the IQR will also increase the number of local locations at which
customers may apply for assistance, from one to four.
Staff has determined that adequate utility enterprise fund reserves are available to offset the revenue impact of
the proposed IQR discounts during the 2017-2018 two-year pilot study, at an estimated total cost of
$2,544,145, based on a 65% enrollment rate, thus no 2017 or 2018 rate increases related to IQR are
proposed. If adopted, the pilot study will occur between 2017 through end of year 2018. Staff will provide City
Council with a one-year evaluation memorandum in the first quarter of 2018, and a two-year evaluation in the
first quarter of 2019, in order to assess the impact of the IQR, the efficacy of the IQR in serving the energy and
resource conservation purposes, and determine whether the IQR should be continued. If after the pilot study,
it is determined the IQR effectively serves its intended resource conservation and utility affordability purposes,
staff propose adjusting rates across all classes to continually fund the IQR.
STAFF RECOMMENDATION
Staff recommends adoption of the Ordinance on First Reading.
BACKGROUND / DISCUSSION
The IQR was presented to City Council at the June 14, 2016 Work Session. City Council supported bringing
the item forward as part of the August 16 City Council agenda. City Council requested the following
information be included in the City Council Agenda Item Summary (AIS):
Timeline for communications outreach once rate ordinance is approved; see slide 5 of presentation.
Clarification on how LEAP income qualifies customers and manages potential fraud; see page 2 of AIS
Utilities staff, in collaboration with internal and community stakeholders, has determined that an effective
conservation strategy addressing energy affordability for low-income customers includes the development of
ATTACHMENT 1
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an Income-Qualified Rate. Incorporating IQR will enable Utilities to refine and improve conservation and
efficiency programs as they relate to low-income customers while providing participating customers financial
relief. This customer segment’s limited participation in efficiency programs is often due to a lack of financial
resources to meet upfront conservation or efficiency program costs, and is frequently exacerbated by
transportation and time constraints.
Utilities does not currently have comprehensive ongoing assistance for low-income customers. The Utilities
emergency assistance program, Payment Assistance Fund (PAF), is not adequate or appropriate to address
the needs of customers with persistent financial difficulty in paying for utility services month after month. In
addition, any future rate increases required to either support Utilities increasing costs of service, or to support
accepted utility purposes such as resource conservation efforts, are likely to intensify a low-income customer’s
difficulty in paying utility bills. Thus, IQR is an opportunity to both encourage participation in energy efficiency
and renewable energy conservation programs through a customized rate structure and address the financial
hardships of the low-income customer segment.
Table 1 below highlights the average bills for customers that may qualify for the IQR at the current 2016 rates
and the potential impacts on 2017 rates based on proposed increases. In 2017, an average customer
qualifying for the IQR could expect to see a credit on their bill of $47.99 per month if they receive all three
services from Fort Collins Utilities. The blended discount for the three services combined is 42%, given the
average consumption levels. The actual total discount amounts, in dollars, will vary depending on which
services they receive and their specific consumption levels for the month.
Table 1
LEAP Program
A thorough qualification process is important to the success of the IQR, however, a well-developed process
can be difficult to establish and maintain. Staff recommends qualifying customers through the well-established
and time-tested LEAP process. In Larimer County, LEAP staffs eight full-time team members who process
thousands of applications for state energy assistance each qualification season (November-April). Additionally,
LEAP maintains a fraud prevention department to avoid any systematic misuse of public benefits. By
leveraging this resource, Utilities is assured a thorough, high quality qualification process for IQR customers,
and LEAP is seizing an opportunity to expand its reach to more eligible customers. Leveraging the LEAP
qualification process has several specific City and customer benefits:
1. It is highly accessible: Qualified case managers are standing by to accept applications via phone, fax,
mail, email, or in person.
2. It offers a simple process: Customers fill out one application for LEAP and IQR, relieving transportation
and time constraints, and enhancing accessibility.
3. It avoids the immediate need for additional FTE’s and keeps administrative needs to a minimum.
4. It ensures the customer receives both state and Utilities benefits, further reducing the customer cost
burden and potential need for PAF assistance, allowing PAF to help more customers each year.
In 2017 LEAP will qualify applicants at 165% of the Federal Poverty Level (FPL). This threshold is evaluated
by the state LEAP office on an annual basis and may change periodically. IQR qualifications will track the
established statewide LEAP threshold each program cycle. Customers will be required to reapply each
program cycle.
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Once a customer is on IQR, conservation efforts will be targeted with low-cost and no-cost conservation
behavior change and direct install opportunities designed to reduce energy and water consumption.
Opportunities will leverage existing resources and include City, state, county and non-profit administered
programs. Conservation opportunities with a range of customer participation levels will be available in an
attempt to reach a spectrum of customers within the low-income segment. In this way, the IQR will serve the
specific utility purposes of energy and resource conservation and affordable utility rates beneficial to the
ratepayers as further outlined in the AIS for the June 14, 2016 City Council Work Session and required by
Article XIII, Section 6 of the City Charter.
The IQR planning and implementation timeline is driven by the need for a strong outreach effort in line with
LEAP’s 2016-2017 program cycle, beginning November 1. Staff needs adequate time to prepare messaging
and marketing materials, informing community action partners and preparing a list of potential participants to
contact for heavy outreach throughout October. Critical path project components being developed in advance
of approval include managing the requirements for rate deployment in the Customer Information Billing System
(CIS), and the establishment and testing of new administrative business processes that support the customer’s
trust and convenience.
Using data collected throughout 2017, staff will provide City Council a memorandum in the first quarter of 2018
outlining the execution results, which will evaluate the effectiveness of the rate to reduce service interruptions
and determine IQR participation and energy and water conservation program participation among the low
income segment. After monitoring and collecting data for two years a full analysis and evaluation will be
conducted and brought to City Council for consideration of continued implementation in the first quarter of
2019.
Impact on the Medical Assistance Program (MAP)
IQR offers a larger discount than MAP, yet the income qualifications are very similar. Staff recommends using
the 2017 and 2018 IQR qualification process to migrate existing MAP customers to IQR. At the end of the IQR
pilot (December 2018) period, it is possible some MAP customer’s income will be too high to qualify for IQR. If
that is the case, staff recommends these customers continue with MAP but eliminate the rate to new
customers.
After monitoring and collecting data on the IQP pilot study for two years, a full analysis and evaluation will be
conducted and brought to City Council for consideration of continued implementation in the first quarter of
2019. It is anticipated that this evaluation will consider the continuation or modification of MAP as well.
Second Reading of Ordinance No. 104, 2016-September 20, 2016
Second reading for this ordinance is scheduled for September 20, 2016. This allows time for the necessary
30-day notice by publication and mailing to City electric customers outside of the City limits prior to second
reading, as required by Colorado statute.
CITY FINANCIAL IMPACTS
In our community, the average household with income less than or at 165% of the Federal Poverty Level (FPL)
pays 4.6% of their income for electric, water and wastewater services compared to the 2.6% of household
income paid by those households earning the Area Median Income (AMI) (see Graph 1). To address this
disparity IQR as proposed would align the percentage of household income spent for these services by a
household at 165% of FPL to that of a household at the AMI. In order to maintain the same rate structure as
that of all other residential customers this could be accomplished by reducing both the fixed and variable
charges for the IQR customers 35% for electricity, 45% for water, and 50% for waste water. By maintaining the
same ratio of fixed to variable charges and relative household income for utility service, the same conservation
signals will be conveyed to all customers. The proposed ordinance amends portions of Chapter 26 of the City
Code to include language establishing the IQR for each utility service (electric, water and wastewater) and
amending the standard residential rates for electric, water and wastewater. The amendments also establish
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the qualifications for the rate and show the percentage discount that will be applied to the base/fixed charges,
as well as the volumetric charges for each service.
Graph 1: Based on 2009-2013 US Census data
Staff has determined that adequate utility enterprise fund reserves are available to offset the revenue impact of
the proposed IQR discounts during the 2017-2018 two-year pilot study and no 2017 rate increase related to
IQR is proposed. If after the pilot study it is determined the IQR effectively serves its intended resource
conservation and utility affordability purposes, staff propose adjusting rates across all classes to continually
fund the IQR.
In order to estimate how many potential households may qualify for IQR, staff utilized the latest American
Community Survey (ACS) data to estimate household incomes for Fort Collins. Based on that data there are
as many as 9,000 eligible households, or approximately 16% of the City’s residential customers, potentially
eligible for the IQR (See Graph 2). ACS data is the same as US Census data (2009-2013) which indicates
18.6% of people in the City of Fort Collins are below Federal poverty level, compared to 13.2% in the state of
Colorado and 15.4% nationwide.
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Graph 2: Based on 2009-2013 US Census data.
The actual cost of IQR depends on the level of enrollment. Table 2, below, shows cost by utility at various
enrollment levels.
Table 2
Assuming 100% enrollment, Table 3 shows the necessary post-pilot rate increase to fund this program if the
increase is kept within the residential rate class and if the increase is shared across all rate classes. Staff
recommends increasing all rate classes because the specific utility purposes of energy and resource
conservation and affordable utility rates will provide a benefit to all ratepayers, as further outlined in the AIS for
the June 14, 2016 City Council Work Session and required by Article XIII, Section 6 of the City Charter.
Achieving an enrollment rate less than 100% would scale the rate impact accordingly. Based on the
experiences of other communities, enrollment above 75% of eligible households is difficult to achieve.
Table 3
The intent of IQR is to reduce overall cost of utility services to the same relative level experienced by a
household with income at the Area Median Income (AMI), so each utility service would see a different discount
rate (See Table 4). The discount would be applied to both the fixed and variable charges for each utility,
ensuring the same price signals are communicated to this segment of residential customers as are to the
entire residential rate class.
enrollment % Electric Water Wastewater
25% $ 350,307 $ 57,679 $ 96,309
50% $ 700,614 $ 115,358 $ 192,618
75% $ 1,050,922 $ 173,037 $ 288,926
100% $ 1,401,229 $ 230,716 $ 385,235
IQR Annual Cost
Electric Water Wastewater
Residential Rate Class Only 3.0% 1.3% 2.4%
All Rate Classes 1.2% 0.8% 1.8%
% Increase By Utility Service
(Assuming 100% Enrollment)
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Table 4
BOARD / COMMISSION RECOMMENDATION
Utilities staff presented the IQR pilot study to and received support from the following boards and
commissions:
1. Affordable Housing Board (recommendation attached to Work Session AIS)
2. Water Board (recommendation attached to Work Session AIS)
3. Energy Board (recommendation attached to Work Session AIS)
4. Senior Advisory Board
5. Commission on Disability
6. Community Development Block Grant Commissions
7. Economic Advisory Committee
8. Human Relations Commission
PUBLIC OUTREACH
External stakeholder involvement has included focus groups, presentations and meetings. Stakeholder
organizations represent diverse constituents, ranging from the business community to citizens in need of
assistance. Discussions have provided a forum to give feedback for staff to consider and incorporate into the
pilot strategy. Stakeholder organizations include: Chamber of Commerce, Colorado Energy Office
(recommendation attached to Work Session AIS), Larimer County Department of Human Services, Energy
Outreach Colorado (recommendation attached to Work Session AIS), Volunteers of America, United Way,
Office on Aging, Catholic Charities, La Familia/The Family Center, Discover Goodwill, Social Sustainability
Grantee Training participants (26 community action agencies), Fort Collins Housing Authority, Neighbor to
Neighbor, Care Housing, and multi-family group-metered properties.
Future outreach will be intentional in reaching a spectrum of customers within the low-income segment and
include widely accessible mass communication tactics such as website and social media, direct mail to
potential participants, and targeted communication disseminated through internal and community action
partners. Through partnerships with the City Rebate program and LEAP, as well as utilizing information from
Utilities assistance programs, staff has developed a comprehensive list of potential customers to contact and
encourage to applying for LEAP. A training session will be offered to Customer Service Representatives so
they are able to answer questions about the new program. Notice of the proposed change to the Municipal
Code to include this type of program will be published in the Coloradoan and a mailing will be sent to City
electric customers outside of the city limits thirty days before Second reading in the same manner as provided
to annual rate update ordinances.
MAP customers will have communications specific to them and their unique circumstances. Staff will continue
to be available to assist in the migration from MAP to IQR through the pilot period and beyond as necessary.
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ATTACHMENTS
1. Commission on Disability minutes, September 24 and December 10, 2015 (PDF)
2. Senior Advisory Board minutes, September 9, 2015 (PDF)
3. Human Relations Commission minutes, November 12, 2015 (PDF)
4. Community Development Block Grant Commission minutes, September 10, 2015 (PDF)
5. Economic Advisory Commission, January 20, 2016 (PDF)
6. Powerpoint presentation (PDF)
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ORDINANCE NO. 104, 2016
OF THE COUNCIL OF THE CITY OF FORT COLLINS
MAKING CERTAIN AMENDMENTS TO CHAPTER 26 OF THE
CODE OF THE CITY OF FORT COLLINS PERTAINING TO ELECTRIC,
WATER AND WASTEWATER RATES, FEES AND CHARGES
ASSOCIATED WITH THE INCOME QUALIFIED RATE PILOT STUDY
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, on December 6, 2011, the City Council adopted Ordinance No. 166, 2011,
adjusting the Residential Class Electric Rates to support conservation values through a tiered rate
structure, effective January 1, 2012; and
WHEREAS, in April 2012, the City Council directed staff to develop electric service rate
alternatives for low-income customers who operate durable medical equipment and air
conditioning due to medical conditions, recognizing that such customers may not be able to
adjust their energy consumption in response to conservation incentives as significantly as other
customers; and
WHEREAS, on May 1, 2012, the City Council adopted Ordinance No. 034, 2012,
creating a Medical Assistance Program (MAP) to equalize, relative to typical residential
customers, the electric service rate charged to qualifying low-income customers who operated
certain medically-necessary equipment and air conditioners; and
WHEREAS, since 2012, advanced electric and water meter data has enabled City
Utilities staff to develop improved rate structure models and identify opportunities to increase
City utility customer adoption of conservation behaviors and practices; and
WHEREAS, staff believes that many low-income utility customers who do not qualify
for the MAP, experience similar obstacles to adoption of conservation behaviors and practices as
the customers for which MAP was designed; and
WHEREAS, in 2014, the City engaged in a comprehensive low-income program review
which led to several staff recommendations to improve conservation and efficiency program
participation by low-income customers; and
WHEREAS, at the January 27, 2015, City Council work session, staff presented customer
efficiency program data and recommendations for incorporating education, income qualification,
accessibility, internal and local non-profit collaboration, and creative funding into City utility
rate structures to incentivize conservation practices by low-income customers; and
WHEREAS, in 2015, staff studied and concluded that development of an Income-
Qualified Rate (IQR) may be an effective utility conservation strategy, if aimed at equalizing,
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relative to typical residential customers, the utility costs paid by low-income customers, who
may not have the ability to participate in conservation programs due to transportation issues, lack
of time, or lack of financial resources to pay conservation or efficiency program costs; and
WHEREAS, at the January 25, 2016, City Council Finance Committee meeting, staff
presented preliminary options to improve the City’s utility conservation and efficiency programs
by adoption of a discounted utility service rate structure for low income households, based on
state and regional census income data; and
WHEREAS, at the June 14, 2016, City Council work session, staff incorporated City
Council feedback from January 25, 2016, and presented revised options to improve the City’s
utility conservation and efficiency programs, including a discounted utility service rate structure
for households with incomes at or below 165% of the Federal Poverty Level (FPL) as
determined under the poverty guidelines updated periodically in the Federal Register by the U.S.
Department of Health and Human Services; and
WHEREAS, Larimer County administers the state sponsored Low Income Energy
Assistance Program (LEAP), which qualifies low income applicants for energy assistance based
on a statewide percentage of FPL, which for 2017 is anticipated to be 165% of FPL; and
WHEREAS, staff recommends that the Larimer County Department of Human Services
LEAP qualification process be utilized to determine eligibility for the IQR to achieve
administrative efficiencies and ease of application for customers; and
WHEREAS, based on City Council feedback from June 14, 2016, staff recommends
implementation of the IQR for residential water, wastewater, and electric customers through a
two-year pilot study, beginning January 1, 2017; and
WHEREAS, staff has determined that adequate utility enterprise fund reserves are
available to offset the revenue impact of the proposed IQR discounts and satisfy the Utilities’
costs of service requirements under the City Charter, without increasing the service rates paid by
other utility customers during the pilot study; and
WHEREAS, at its February 4, 2016, meeting the Energy Board considered the proposed
electric rates, fees and charges, associated with IQR and recommended approval of the rate
changes associated with the pilot study; and
WHEREAS, at its January 21, 2016, meeting the Water Board considered the proposed
water and wastewater rates, fees and charges, associated with IQR and recommended approval of
the rate changes associated with the pilot study; and
WHEREAS, the City Manager and staff have recommended to the City Council the
water, wastewater, and electric rate adjustments and City Code rate language additions for all
participating customer billings issued with meter readings on or after January 1, 2017 as
described herein; and
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WHEREAS, staff believes that an IQR will serve the specific utility purposes of
facilitating energy and resource conservation by and affordable utility rates for income qualified
customers, which is beneficial to the ratepayers as further outlined in the agenda item summary
for the June 14, 2016 City Council Work Session and required by Article XIII, Section 6 of the
City Charter; and
WHEREAS, staff is prepared to mail and publish notice of the recommended utility rate
changes described herein as required by law after adoption of this Ordinance on first reading and
second reading will be scheduled accordingly; and
WHEREAS, based on the foregoing, it is the desire of the City Council to amend Chapter
26 of the City Code to revise the water, wastewater, and electric rates, fees and charges
associated with an IQR pilot study.
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF
FORT COLLINS as follows:
Section 1. That the City Council hereby makes and adopts the determinations and
findings contained in the recitals set forth above, including but not limited to the finding that the
IQR pilot study will serve the specific utility purposes of facilitating energy and resource
conservation by and affordable utility rates for income qualified customers, which is beneficial to
all ratepayers of the utilities as contemplated in Article XIII, Section 6 of the City Charter.
Section 2. That Section 26-127 of the Code of the City of Fort Collins, regarding
meter rates for residential customers of the water utility, is hereby amended by the adoption of a
new subsection (a)(4) to read as follows:
Sec. 26-127. - Schedule B, meter rates.
…
(a) Residential rates
…
(4) Income qualified rate (IQR) for residential customers-pilot study.
a. Objective. The City has identified potential benefits available through a
water rate discount for income-qualified residential customers, including
encouraging customer participation in water conservation education and
efficiency programs, and lowering the threshold for customer investments in
residential water system upgrades. In order to study these benefits, Utility
Services shall conduct a temporary pilot study implementing a residential income
qualified rate (IQR) beginning with first the billing cycle commencing on or after
January 1, 2017, and concluding after twenty four (24) full billing cycles (the
pilot study period).
b. Scope. During the pilot study period, the IQR shall be charged to all
residential customers accepted into and enrolled in the Larimer County Low
Income Energy Assistance Program (LEAP) and identified as a Utilities Services
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customer. To receive the IQR discount, customers must apply and be qualified for
LEAP.
c. Rate. During the pilot study period, customers qualified for the IQR as set
forth herein shall receive a discount of forty-five percent (45%) off their total
monthly water utility service charges based on the fixed and volumetric rates in
Subsections (a) (1)-(3) above.
d. PILOT. IQR customers shall pay the full charge for payments in lieu of
taxes (PILOT) and franchise due under Code Section 26-118, without any
discount of the six percent (6%) rate set forth therein.
Section 3. That Section 26-278 of the Code of the City of Fort Collins, regarding
classification of wastewater utility users, is hereby amended by the adoption of a new subsection
(9) to read as follows:
Sec. 26-278. – Classification of users.
…
(9) Category I - Income qualified rate (IQR) pilot study. Users in this category shall
include Category A, B, and C customers participating in the IQR pilot study, as described
in Section 26-279.
Section 4. That Section 26-279 of the Code of the City of Fort Collins, regarding
monthly service charges for wastewater utility services, is hereby amended by the adoption of a
new Subsection (c)(7) to read as follows:
Sec. 26-279. – Service charges; categories.
…
(c)
…
(7) The rate for users in Category I shall be based on the rates for Categories
A, B, and C, discounted for participating income qualified residential customers
as follows:
a. Objective. The City has identified potential benefits available
through wastewater rate discount for income-qualified residential users,
including encouraging user participation in water conservation education
and efficiency programs, and lowering the threshold for user investments
in residential water and wastewater system upgrades. In order to study
these benefits, Utility Services shall conduct a temporary pilot study
implementing a residential income qualified rate (IQR) beginning with the
first billing cycle commencing on or after January 1, 2017, and concluding
after twenty four (24) full billing cycles (the pilot study period).
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b. Scope. During the pilot study period, the IQR shall be charged to
all users in Categories A, B, and C who are accepted into and enrolled in
the Larimer County Low Income Energy Assistance Program (LEAP) and
identified as a Utilities Services customer. To receive the IQR discount,
users must apply and be qualified for LEAP.
c. Rate. During the pilot study period, users qualified for the IQR as
set forth herein shall receive a discount of fifty percent (50%) off their
total monthly wastewater utility service charges based on the Category A,
B, and C fixed and volumetric rates in Section 26-280.
d. PILOT. IQR customers shall pay the full charge for payments in
lieu of taxes (PILOT) and franchise due under Code Section 26-118,
without any discount of the six percent (6%) rate set forth therein.
Section 5. That Section 26-280 of the Code of the City of Fort Collins, regarding the
schedule of rates for waste water users by category, is hereby amended by the adoption of a new
category row to the schedule of rates to read as follows:
Sec. 26-280. - Service charges established by category.
…
Category
Class of
Customer
Rate
…
I
Single-family residential user (flat rate); Single-
family residential user (metered water use);
Duplex (two-family) residential users (flat rate);
Duplex (two-family) residential users (metered
water use); and Multi-family residential user
(more than two dwelling units including mobile
home parks).
50% discount on total monthly
wastewater utility service
charges, on the Category A, B,
and C fixed and volumetric rates
in Section 26-280 (charged to
users participating in IQR pilot
study)
Section 6. That Section 26-464 of the Code of the City of Fort Collins, regarding
residential electric rates (Schedule R), is hereby amended by the adoption of a new Subsection (t)
to read as follows:
Sec. 26-464. Residential energy service, schedule R.
. . .
(t) Income Qualified Rate (IQR) Pilot Study.
(1) Objective. The City has identified potential benefits available through an
electric rate discount for income-qualified residential customers, including
encouraging customer participation in electricity conservation education and
efficiency programs, and lowering the threshold for customer investments in
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residential electric system upgrades. In order to study these benefits, Utility
Services shall conduct a temporary pilot study implementing a residential income
qualified rate (IQR) beginning with the first billing cycle commencing on or after
January 1, 2017, and concluding after twenty four (24) full billing cycles (the
pilot study period).
(2) Scope. During the pilot study period, the IQR shall be charged to all
residential customers accepted into and enrolled in the Larimer County Low
Income Energy Assistance Program (LEAP), identified as a Utilities Services
customer and who are not net-metering customers. To receive the IQR discount,
customers must apply and be qualified for LEAP.
(3) Rate. During the pilot study period, customers qualified for the IQR as set
forth herein shall receive the following discount off the total monthly Schedule R
electric utility service charges in Subsection (c):
IQR discount on total monthly fixed, distribution facilities,
and energy and demand charges (but not on payment in
lieu of taxes (PILOT) and franchise amounts due)
35%
(4) PILOT. IQR customers shall pay the full charge for payments in lieu of
taxes (PILOT) and franchise due under this Section 26-464, without any discount
of the six percent (6%) rate set forth herein.
Section 7. That Section 26-465 of the Code of the City of Fort Collins, regarding
residential demand service electric rates (Schedule RD) is hereby amended by the adoption of a
new subsection (t) to read as follows:
Sec. 26-465. Residential demand service, schedule RD.
. . .
(t) Income Qualified Rate (IQR) Pilot Study.
(1) Objective. The City has identified potential benefits available through an
electric rate discount for income-qualified residential customers, including
encouraging customer participation in electricity conservation education and
efficiency programs, and lowering the threshold for customer investments in
residential electric system upgrades. In order to study these benefits, Utility
Services shall conduct a temporary pilot study implementing a residential income
qualified rate (IQR) beginning with the first billing cycle commencing on or after
January 1, 2017, and concluding after twenty four (24) full billing cycles (the
pilot study period).
(2) Scope. During the pilot study period, the IQR shall be charged to all
residential customers accepted into and enrolled in the Larimer County Low
Income Energy Assistance Program (LEAP), identified as a Utilities Services
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customer and who are not net-metering customers. To receive the IQR discount,
customers must apply and be qualified for LEAP.
(3) Rate. During the pilot study period, customers qualified for the IQR as set
forth herein shall receive the following percentage discount off the total monthly
Schedule RD electric utility service charges in Subsection (c) above:
IQR discount on total monthly fixed, demand, distribution
facilities, and energy charges (but not payment in lieu of
taxes (PILOT) and franchise amounts due)
35%
(4) PILOT. IQR customers shall pay the full charge for payments in lieu of
taxes (PILOT) and franchise due under this Section 26-465, without any discount
of the six percent (6%) rate set forth herein
Section 8. That the amendments herein are effective and shall go into effect as
follows:
A. IQR pilot study discounted water rates shall apply to water service charges
on the basis of meter readings on or after January 1, 2017; and
B. IQR pilot study discounted wastewater rates shall apply to wastewater
service charges on the basis of meter readings on or after January 1, 2017.;
and
C. IQR pilot study discounted electric rates shall apply to energy consumed
on or after January 1, 2017.
Introduced, considered favorably on first reading, and ordered published this 6th day of
September, A.D. 2016, and to be presented for final passage on the 20th day of September, A.D.
2016.
__________________________________
Mayor
ATTEST:
_______________________________
City Clerk
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Passed and adopted on final reading on the 20th day of September, A.D. 2016.
__________________________________
Mayor
ATTEST:
_______________________________
City Clerk