HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 06/06/2017 - ITEMS RELATING TO CAPITAL EXPANSION FEES AND THE EAgenda Item 20
Item # 20 Page 1
AGENDA ITEM SUMMARY June 6, 2017
City Council
STAFF
Tiana Smith, Revenue and Project Manager
SUBJECT
Items Relating to Capital Expansion Fees and the Electric Capacity Fee.
EXECUTIVE SUMMARY
A. Second Reading of Ordinance No. 049, 2017, Amending Chapters 7.5, 8 and 24 of the Code of the City of
Fort Collins Concerning Revisions to Terminology and Decreases and Phased Increases of the Capital
Expansion Fees and Amending Section 3.3.2(G) of the Land Use Code to Revise Related Terminology.
B. Second Reading of Ordinance No. 068, 2017, Amending Chapter 26 of the Code of the City of Fort Collins
Regarding Calculation and Collection of Development Fees Imposed for the Construction of New or
Modified Electric Service Connections.
These Ordinances, unanimously adopted on first reading on May 16, 2017, adopt fee recommendations for
capital expansion and transportation expansion fees and electric capacity fees effective beginning October 1,
2017. On first reading, Alternative 2 of Ordinance No. 049, 2017 was adopted, which provides for fee
increases without any phasing in amounts less than what is recommended in the studies for the Capital
Expansion Fees and the Transportation Expansion Fee for the lesser amount recommended in those studies.
Alternative 3 will be presented to Council as requested. It provides funding for transportation improvements.
A new Section 30 has been added to the Ordinance to direct the City Manager to appoint a working group of
citizens and City staff to further study the issue of capital expansion and transportation expansion fees. This
includes the appointment of a member of Council to act as a communications liaison between the Council and
the City Manager and his working group.
Discussion arose during First Reading of the Ordinance about how the new fees would apply to projects that
are currently in the entitlement pipeline. Two suggested alternatives have been provided for Council
consideration.
STAFF RECOMMENDATION
Staff recommends adoption of the Ordinances on Second Reading.
BACKGROUND/DISCUSSION
Alternative 3 is shown on Attachment 4, as requested by the City Council at First Reading. This alternative
provides for fee increases as adopted on First Reading for Capital Expansion Fees and for “Option A” as
described in the Transportation Capital Expansion Fee Study to fund the costs of the full Capital Improvement
Program for transportation facilities.
As currently provided in the Code, projects that have submitted a development application but have not yet
been approved, or have been approved but have not yet been issued a building permit would be subject to the
new fee schedule. It was suggested that the fees be based upon the rate at the time of submission of a
Agenda Item 20
Item # 20 Page 2
completed development application, so that development projects in the entitlement pipeline are not subject to
the new fees. If Council chooses to make this change, it is recommended that one of the two sentences below
be added by motion to Code Section 7.5-16 (in Section 3 of the Ordinance, on page 2). This will add language
expressly stating when the new fee schedule is applicable to development projects. The two are options are as
follows:
1. Said fees shall be determined based upon the rate applicable either at the time of submission of a
completed development application, if any, or if no development application is submitted, at the time of
submission of a completed building permit application;
OR
2. Said fees shall be determined based upon the rate applicable at the time of submission of a completed
building permit application.
ATTACHMENTS
1. First Reading Agenda Item Summary May 16, 2017 (w/o attachments) (PDF)
2. Impact Fee Working Team Project Definition (PDF)
3. Public Outreach Summary (PDF)
4. Alternative 3 (PDF)
5. Powerpoint presentation (PDF)
Agenda Item 14
Item # 14 Page 1
AGENDA ITEM SUMMARY May 16, 2017
City Council
STAFF
Tiana Smith, Revenue and Project Manager
SUBJECT
Items Relating to Capital Expansion Fees and the Electric Capacity Fee.
EXECUTIVE SUMMARY
A. First Reading of Ordinance No. 049, 2017, Amending Chapters 7.5, 8 and 24 of the Code of the City of
Fort Collins Concerning Revisions to Terminology and Decreases and Phased Increases of the Capital
Expansion Fees and Amending Section 3.3.2(G) of the Land Use Code to Revise Related Terminology.
(Alternative 1 or Alternative 2)
B. First Reading of Ordinance No. 068, 2017, Amending Chapter 26 of the Code of the City of Fort Collins
Regarding Calculation and Collection of Development Fees Imposed for the Construction of New or
Modified Electric Service Connections.
The purpose of this item is to consider adoption of fee recommendations for capital expansion and
transportation expansion fees on a phased-timeline beginning October 1, 2017, and electric capacity fees
effective beginning October 1, 2017, with no phasing. In early 2016, staff initiated comprehensive reviews of
the Capital Expansion Fees, Transportation Expansion Fee (Street Oversizing) and the Electric Capacity Fee.
In late 2016, staff conducted a thorough inventory of all fees across the City in order to better coordinate
presentation of the holistic impact of fee recommendations to the community. Fee studies were also conducted
for the Capital Expansion Fees and the Transportation Expansion Fee. Staff worked to integrate the
messaging of these efforts to the community and to Council to illustrate the entire fee impact as well as how
Fort Collins compares to neighboring cities’ impact fees. Capital Expansion Fees include the impact fees
charged for Fire, Police, General Government, Community Parks and Neighborhood Parks. The
Transportation Expansion Fee is also a Capital Expansion Fee, but is determined differently than the other
Capital Expansion Fees. The Electric Capacity Fee is an impact fee imposed by the City’s Electric Utility.
Ordinance No. 049, 2017, which provides for the changes to the Capital Expansion Fees and the
Transportation Expansion Fee, is proposed in two alternative ordinances. Alternative 1 proposes the phasing
of the full fee amounts recommended in the fee studies, while Alternative 2 provides for fee increases without
any phasing in amounts less than what is recommended in the study for the Capital Expansion Fees and for
the Transportation Expansion Fee for the lesser amount recommended in its study.
STAFF RECOMMENDATION
Staff recommends adoption of either Alternative 1 Ordinance No. 049, 2017 or Alternative 2 Ordinance No.
049, 2017, and adoption of Ordinance No. 068, 2017 on First Reading.
ATTACHMENT 1
Agenda Item 14
Item # 14 Page 2
BACKGROUND / DISCUSSION
Capital Expansion Fees
Capital Expansion Fees are used to require new development to pay a proportionate share of infrastructure
costs. The method of calculating the fees that the City of Fort Collins has used since 1996 is referred to as
incremental expansion. This method works in the following manner:
New development pays a fee based on current infrastructure costs - they essentially “buy in” to the current
system.
The revenues from the fees are then used to build new infrastructure to serve the new development and/or
the increase in population that follows the development.
For reference, Capital Expansion Fees are only paid for new development on residential properties and for re-
development only in the case where additional dwelling units are added, i.e. a carriage house on the same
parcel. Capital Expansion Fees for new development are paid only on square footage above grade so square
footage for basements is not included in calculating fees. Capital Expansion Fees are not paid for additions to
existing dwelling units, unless the structure is completely scraped, in which case it is considered a new
development and all Capital Expansion Fees are charged.
Capital Expansion Fees are paid for new development and re-development on commercial properties.
The City’s Capital Expansion Fees were originally prepared and adopted in 1996 and then updated in 2013.
Direction was given to staff to update the fees every 3-5 years.
The fees included in the study are:
Neighborhood Parks
Community Parks
Fire
Police
General Government
In 2013, the fees for police, fire and general government for commercial and industrial land use types were
phased in over a 3-year period and updated annually for inflation according to the Denver-Boulder-Greeley
Consumer Price Index and Denver Region Construction Cost Index. For residential land use types, the fees
were updated in 2013 and have been updated annually for inflation according to the Denver-Boulder-Greeley
Consumer Price Index and Denver Region Construction Cost Index.
Staff worked with the Duncan Associates to review the methodology and update the fees. The outcome of the
study retains the basic methodology of incremental expansion and updates inputs from 2013 to reflect current
asset information. The fees have all been updated based on today’s current level of service and cost which
factors in current capital assets for all fees. The resulting report has been included in previous presentations at
City Council and can also be found at:
http://www.fcgov.com/finance/capitalexpansion.php
Additional updates to the fee recommendations previously presented to City Council at the April 25, 2017 Work
Session have been made to the parks fees removing Twin Silos costs from the calculations for community
parks based on feedback from Council Finance Committee on April 28, 2017. Additionally, a working group
was recommended to help inform and gain consent as well as step through methodology and discuss
alternatives.
ATTACHMENT 1
Agenda Item 14
Item # 14 Page 3
Based on feedback from Leadership Planning Team on May 9, 2017, two alternatives are presented:
1. Alternative 1: (October 1, 2017 – January 1, 2020)
• Capital Expansion Fees as proposed, phased in 3 steps over 27 months with Twin Silos removed from
calculations
• Transportation Capital Expansion Fees phased in 2 steps over 15 months, with Option B first, then Option
A
• Electric Capacity Fee as proposed (not phased; effective October 1, 2017)
2. Alternative 2: (End of May, 2017-October 2017)
• CEFs at 75% of Proposed
• Option B for Transportation CEF
• Electric Capacity Fee as proposed (not phased; effective October 1, 2017)
Under both alternatives, the City Manager is directed to form a working group of City staff and community
stakeholders to consider and recommend future changes to the Capital Expansion Fees.
Transportation Expansion Fee (formerly Street Oversizing Fee)
The Transportation Expansion Fee is a one-time impact fee on development, and is used to mitigate the
impacts of new development on the transportation network. The Transportation Expansion Fee Program has
been a stable, long-term funding source for the construction of capital transportation infrastructure in newly-
developing areas. The fee program was originally adopted in 1979, with revisions in 1986, 1993, 1997, 2000,
2003, and 2006. Periodic recalculations and inflation adjustments of the fee schedule ensure that fee revenues
will be sufficient to pay for the cost of eligible transportation improvements. However, as the City begins to
approach build out of its Growth Management Area, it is prudent to assess and update the program to continue
the long-term success of the program to fund development impacts to the City’s transportation network. City
Council has directed staff to review the Transportation Expansion Fee Program as the appropriate basis for
assessing the cost of transportation improvements to developments based on their proportional impacts.
The City has retained TischlerBise, Inc. as a consultant to assist the City with the assessment of its existing
Transportation Expansion Fee Program (formerly, Street Oversizing Capital Expansion Fee Program). They
have completed a draft report included in previous presentations to City Council which can also be found at the
web address listed above. The recommended updates to the fees include the following:
Change the name from “Street Oversizing” to “Transportation Expansion Fee”.
Simplify the transportation impact fee schedule from 43 categories of use to only a handful; Residential (by
size of unit) and two broad categories for commercial and industrial.
Use Vehicle Miles Travelled (VMT) as the basis for determining impact, instead of trips generated. Impact:
this change more accurately ties the fee to demand on the transportation system.
Increase the fee to include additional transportation system improvements (bicycle, pedestrian, transit,
intersection turn lanes, and signal timing improvements, for example). Impact: this proposed change is
estimated to increase the magnitude of the fee by 24%.
Transportation Capital Expansion Fees-Option A and Option B
Option A includes the proportionate cost attributable to new development of Bicycle, Pedestrian, and Transit
improvements in addition to intersection turn lanes, signals, signal timing, and Advance Traffic Management
Systems.
Option B is calculated on the City's Capital Improvement Plan and assumes funding for streets and
intersection improvements similar to the existing program.
ATTACHMENT 1
Agenda Item 14
Item # 14 Page 4
Electric Capacity Fees
In 2016 Fort Collins Utilities hired NewGen Strategies to survey how Plant Investment Fees (PIFs) are
collected by other electric utilities and to provide assistance building a revised PIF model to allocate capital
costs to new load on the electric system. This effort allowed for the calculation to be easier to understand and
update, while recognizing the change in how development occurs within the city at this stage of its growth.
Current Model
The current PIF consisting of an electric capacity fee (ECF) and a building site change (BSC) is calculated by
utilizing a system planning model that was originally developed in early 1980’s and has been updated several
times to reflect changes in system design standards and policy. This underlying model assumes a certain
system design and allocates the costs of this system design based on the square footage, the linear footage
that abuts the public right of way, and demand (kilowatt or kW) of the new development.
The current method has several challenges. The costs for these components (square footage, front footage,
and dwelling units/capacity) are calculated through the use of visual basic code (VBA) to access databases
that contain assembly information and cost data. As a result, it is cumbersome to update these calculations if
changes need to be made to the underlying planning model. For example, it is difficult to modify the
calculations so that the model includes mixed use developments or higher density developments. Additionally,
the planning model has difficulty assigning costs for capital work required for redevelopment, such as adding a
circuit for additional load.
Proposed Model
As a result of the trend toward higher density developments and redevelopments, and the dynamic nature of
the electric system in general, staff recommends changing the methodology of the PIF model to address the
concerns raised above. The proposed methodology is based on the “buy-in” method for PIFs and is
conceptually similar with the PIF models for the water and wastewater utilities. This method takes the value of
the utilized electric system, i.e. the amount of the system that is needed to serve the current load and no more,
and divides this dollar value by the current kilowatt (kW) demand. This calculation results in the $/kW rate that
was used to build the current system to meet the current demand. New load on the system would buy into the
electric system at this $/kW rate. This simplifies the calculation and administration of the electric PIFs.
In addition to these simplifications, the proposed methodology also uses actual data to allocate costs instead
of a planning model. Demands, non-coincident peaks (NCP), for the residential and commercial/industrial
customer classes are calculated from AMI data and are used to allocate the system costs proportionally to
each class based on the class NCP. This allocation method provides a different $/kW “buy-in” rate for each of
these classes and is consistent with standard cost allocation practices in utility rate making. Due to the large
variation in demands from the commercial class a sliding scale was implemented for the $/kW rate for
commercial customers, as the load from a commercial customer increases the “buy-in” rate increases as well
to allocate the additional system costs required to serve large loads.
Lastly, this proposed method is flexible and adapts to changes in development by using actual system values
and actual demands as opposed to the current method.
The fee recommendations for the two alternatives can be seen below:
ATTACHMENT 1
Agenda Item 14
Item # 14 Page 5
Alternative 1
• Capital Expansion Fees as proposed, with Twin Silos removed from calculations
• Transportation Option A
• Electric capacity fees as proposed
N'hood Comm. Gen. Electric Total
Land Use Type Unit
Park Park Fire Police Gov't Capacity
Fees
CEFs +
Transp +
Elec
Updated Fees
Resid., up to 700 sf Dwelling $1,790 $2,334 $502 $236 $574 $2,205 $1,349 $8,990
Resid., 701-1,200 sf Dwelling 2,396 3,123 679 319 774 4,095 1,443 12,829
Resid., 1,201-1,700 sf Dwelling 2,616 3,411 739 347 845 5,317 1,537 14,812
Resid., 1,701-2,200 sf Dwelling 2,644 3,446 751 352 858 6,217 1,708 15,976
Resid., over 2,200 sf Dwelling 2,947 3,841 836 392 955 6,664 1,879 17,514
Commercial 1,000 sf 0 0 633 297 1,451 8,113 170 10,664
Office and Other Services 1,000 sf 0 0 633 297 1,451 5,977 227 8,585
Industrial/Warehouse 1,000 sf 0 0 148 69 342 1,929 1,986 4,474
Change
Resid., up to 700 sf Dwelling 490 1,232 221 95 244 300 (774) 1,808
Resid., 701-1,200 sf Dwelling 729 1,709 322 141 351 1,952 (828) 4,376
Resid., 1,201-1,700 sf Dwelling 774 1,849 344 149 380 2,205 -882 4,819
Resid., 1,701-2,200 sf Dwelling 725 1,818 341 146 371 3,105 -980 5,526
Resid., over 2,200 sf Dwelling 891 2,098 396 172 432 3,552 -1,078 6,463
Commercial 1,000 sf 0 0 294 128 648 -3,817 -133 -2,880
Office and Other Services 1,000 sf 0 0 294 128 648 -1,783 -76 -789
Industrial/Warehouse 1,000 sf 0 0 68 28 154 799 890 1,939
Percent Change
Resid., up to 700 sf Dwelling 38% 112% 79% 67% 74% 16% -36% 25%
Resid., 701-1,200 sf Dwelling 44% 121% 90% 79% 83% 91% -36% 52%
Resid., 1,201-1,700 sf Dwelling 42% 118% 87% 75% 82% 71% -36% 48%
Resid., 1,701-2,200 sf Dwelling 38% 112% 83% 71% 76% 100% -36% 53%
Resid., over 2,200 sf Dwelling 43% 120% 90% 78% 83% 114% -36% 58%
Commercial 1,000 sf 87% 76% 81% -32% -44% -21%
Office and Other Services 87% 76% 81% -23% -25% -8%
Industrial/Warehouse 1,000 sf 85% 68% 82% 71% 81% 76%
Transp.
Option
A
ATTACHMENT 1
Agenda Item 14
Item # 14 Page 6
Alternative 2
• Capital Expansion Fees at 75% of proposed with Twin Silos removed from calculations
• Transportation Option B
• Electric capacity fees as proposed
N'hood Comm. Gen. Electric Total
Land Use Type Unit
Park Park Fire Police Gov't Capacity
Fees
CEFs +
Transp +
Elec Fees
Updated Fees El
Resid., up to 700 sf Dwelling $1,343 $1,751 $377 $177 $431 $1,827 $1,349 $7,253
Resid., 701-1,200 sf Dwelling 1,797 2,342 509 239 581 3,392 1,443 10,303
Resid., 1,201-1,700 sf Dwelling 1,962 2,558 554 260 634 4,404 1,537 11,910
Resid., 1,701-2,200 sf Dwelling 1,983 2,585 563 264 644 5,150 1,708 12,896
Resid., over 2,200 sf Dwelling 2,210 2,881 627 294 716 5,520 1,879 14,127
Commercial 1,000 sf 0 0 475 223 1,088 6,721 170 8,677
Office and Other Services 1,000 sf 0 0 475 223 1,088 4,951 227 6,964
Industrial/Warehouse 1,000 sf 0 0 111 52 257 1,598 1,986 4,003
Change
Resid., up to 700 sf Dwelling 43 649 96 36 101 (78) (774) 71
Resid., 701-1,200 sf Dwelling 130 928 152 61 158 1,249 (828) 1,851
Resid., 1,201-1,700 sf Dwelling 120 996 159 62 169 1,292 -882 1,917
Resid., 1,701-2,200 sf Dwelling 64 957 153 58 157 2,038 -980 2,447
Resid., over 2,200 sf Dwelling 154 1,138 187 74 193 2,408 -1,078 3,077
Commercial 1,000 sf 0 0 136 54 285 -5,209 -133 -4,868
Office and Other Services 1,000 sf 0 0 136 54 285 -2,809 -76 -2,410
Industrial/Warehouse 1,000 sf 0 0 31 11 69 468 890 1,468
Percent Change
Resid., up to 700 sf Dwelling 3% 59% 34% 26% 30% -4% -36% 1%
Resid., 701-1,200 sf Dwelling 8% 66% 43% 34% 37% 58% -36% 22%
Resid., 1,201-1,700 sf Dwelling 7% 64% 40% 31% 36% 42% -36% 19%
Resid., 1,701-2,200 sf Dwelling 3% 59% 37% 28% 32% 65% -36% 23%
Resid., over 2,200 sf Dwelling 8% 65% 43% 34% 37% 77% -36% 28%
Commercial 1,000 sf 40% 32% 36% -44% -44% -36%
Office and Other Services 40% 32% 36% -36% -25% -26%
Industrial/Warehouse 1,000 sf 39% 26% 36% 41% 81% 58%
Transp.
Option
B
ATTACHMENT 1
Agenda Item 14
Item # 14 Page 7
Phasing:
Alternative 1
Capital Expansion Fees in 3 steps over 27 months
Transportation in 2 steps over 15 months, first Option B, then Option A
Electric Capacity Fees all at once
Alternative 2 (No Phasing)
Capital Expansion Fees at 75 % effective October 1, 2017
Transportation Option B effective October 1, 2017
Electric Capacity Fees all at once effective October 1, 2017
Working group will meet and work through understanding the studies, the methodologies
and alternatives.
CITY FINANCIAL IMPACTS
Revenue from Capital Expansion Fees, Transportation Expansion Fees and Electric Capacity Fees is driven
entirely by the amount of growth/development/re-development that occurs in the City. For Transportation
Expansion Fees and Capital Expansion Fees, revenue is used to support infrastructure needs that result in
growth from the community. For Electric Capacity Fees, revenue goes to the Utilities Light and Power
Enterprise fund to be used for the future planning needs of the electric utility.
Current 1-Oct-17 1-Jan-19 1-Jan-20 % Change % Change % Change
Land Use Type Fees Step 1 Step 2 Step 3 Step 1 Step 2 Step 3
Updated Fees
Resid., up to 700 sf $7,182 $7,091 $8,229 $8,990 ‐1.3% 16% 9%
Resid., 701‐1,200 sf 8,453 9,958 11,745 12,829 18% 18% 9%
Resid., 1,201‐1,700 sf 9,993 11,568 13,647 14,812 16% 18% 9%
Resid., 1,701‐2,200 sf 10,450 12,642 14,842 15,976 21% 17% 8%
Resid., over 2,200 sf 11,051 13,711 16,184 17,514 24% 18% 8%
Commercial 13,544 8,559 10,307 10,664 ‐37% 20% 3%
Office and Other Services 9,374 6,846 8,229 8,585 ‐27% 20% 4%
Industrial/Warehouse 2,535 3,976 4,390 4,474 57% 10% 2%
Current 1-Oct-17 % Change
Land Use Type Fees Step 1 Step 1
Updated Fees
Resid., up to 700 sf $7,182 $7,253 1%
Resid., 701‐1,200 sf 8,453 10,303 22%
Resid., 1,201‐1,700 sf 9,993 11,910 19%
Resid., 1,701‐2,200 sf 10,450 12,896 23%
Resid., over 2,200 sf 11,051 14,127 28%
Commercial 13,544 8,677 ‐36%
Office and Other Services 9,374 6,964 ‐26%
Industrial/Warehouse 2,535 4,003 58%
N/A N/A N/A N/A
ATTACHMENT 1
Agenda Item 14
Item # 14 Page 8
If Capital Expansion Fees are not appropriately collected, resulting in a lack of revenue, financial impacts may
be:
Delay of projects
Facilities and assets may be designed and built at a lower level of service
Revenue to fund services and projects may come from a different source, most likely the General Fund.
An additional potential financial impact could occur if eligible projects through the Housing Authority apply for a
waiver of Capital Expansion Fees and the fee revenue from the waiver is then backfilled by the General Fund.
This occurred in 2013 with Redtail Ponds which resulted in a fee waiver and backfill from the General Fund of
$274K. For the 2013-2014 Budgeting for Outcomes cycle, examples of one-time General Fund offers that
were not funded for roughly that same amount of money are:
Environmental Health
Propane and Natural Gas Vehicle Conversions - $85K
Sustainable Theatrical Lighting at Lincoln Center - $197K
Culture and Recreation
Shelter at Inspiration Playground - $86K
Economic Health
Downtown Plan Update- $105K
High Performing Government
Sustainability Service Area Office Space- $300K
BOARD / COMMISSION RECOMMENDATION
The Economic Advisory Commission recommends supporting the fee recommendations. (Attachment 2)
The Parks and Recreation Board is in support of fees that reflect the true cost of park replacement.
(Attachment 3)
The Affordable Housing Board was not in support of the higher fee recommendations. The Board requested at
least 6 months lead time, preferably longer, before fees are implemented. (Attachment 4)
The Building Review Board did not feel it had sufficient time or information to submit a recommendation.
(Attachment 5)
The Human Relations Commission was not in support of the fee recommendations and had concerns over
housing affordability and the impact of these fees on marginalized populations that may be paying for impacts
that they do not cause due to lack of income, i.e., they may not have a car.
PUBLIC OUTREACH
See Attachment 1 for public outreach.
ATTACHMENTS
1. Public Outreach Summary (PDF)
2. Economic Advisory Commission Memo, February 7, 2017 (PDF)
3. Parks and Recreation Board letter, May 8, 2017 (PDF)
4. Building Review Board Minutes, April 27, 2017 (PDF)
5. Affordable Housing Board Minutes, October 13, 2016 (PDF)
6. Powerpoint presentation (PDF)
ATTACHMENT 1
1 | P a g e
Impact Fee Working Team
Project Definition
Objective:
Informed consent of the working group with an ultimate position
paper on the methodologies, inputs, calculations, and update
cadence to Capital Expansion Fees, Transportation Capital Expansion
Fees, Electric Capacity Fees, Raw Water/Cash-in-Lieu Requirements,
Development Review Fees and Wet Utility Plant Investment Fees.
What is the scope of this project? Create a working group with an equal balance of citizens, City staff and
business-oriented groups. The working group will meet monthly to
accomplish the bullets below:
• Understand why City has fees and how they’re used
- Parks
- General Gov’t, Fire, Police
- Utility PIFs (Water, Electric)
- Raw Water Requirement/Cash-in-Lieu
- Transportation Capital Expansion Fee
- Development Review Fees (Plan Review Fee, Planning
Fees and Building Permit Fees, OTC Permits,
Proposed Dev. Review Fee Process)
- Connection to City Plan & other master plans
• Understand inputs & calculations
- Review consultant studies including all inputs and
calculations
CEFs (Duncan Associates)
Transportation (Tischler-Bise)
Electric Capacity Fees (NewGen)
- How does the City assess asset values?
- Cost of Capital Improvement Program
- Census Data (Functional Population, Equivalent
Dwelling Units)
- Appropriate cadence for updates
• Evaluate & understand methodology & alternatives
- Methodologies for determining fees & how they work
Plan-based
Standard-Based
ATTACHMENT 2
2 | P a g e
Impact Fee Working Team
Project Definition
Utility methodologies
Hybrid
- Industry Best Practices
- Legal constraints
• Evaluate appropriate public outreach necessary to support fee
udpates
• Evaluate alternative revenue sources to fees
- General Fund
- Enterprise Fund
Who are the stakeholders? • Boards and Commissions
o Economic Advisory Commission
o Human Relations Commission
o Affordable Housing Board
o Building Review Board
o Planning and Zoning Board
o Development Review Advisory Committee
o Parks and Recreation Board
• Developers
• Chamber of Commerce
• Board of Realtors
• Home Builder’s Association
• Housing Catalyst
• DDA
• Residents/Community at large ?
How will we know that the project
was a success?
Acknowledgement from team of understanding of fees methodologies,
inputs and calculations
Consensus or position paper(s) from working group shared to City
Council
What are the key deliverables of
this project?
Deliverables:
• Monthly meetings on the topics listed above.
• Draft position paper with presentation to Council Finance
Committee – direction from there on communication with the
entire council.
3 | P a g e
Project Organization
Which group(s) and/or
individuals will be involved in
this project?
Citizens
City Staff
Council Liaison
Industry-related organizations (Residential and/or Commercial)
Name Role Estimate of Hours Needed
TBD City Council Liaison
Mike Beckstead Project Sponsor/City Staff
Tiana Smith Project Manager/City Staff/Fee
Owner Capital Expansion Fees
Tom Leeson City Staff
Lance Smith City Staff/Fee Owner Electric
Capacity Fees
Josh Birks City Staff
TBD Industry- Homebuilder’s
Association (Residential)
TBD Industry- Board of Realtors
(Residential)
TBD Industry- Chamber Local
Legislative Affairs Committee
(Residential and Commercial)
TBD Industry- Spirit Hospitality LLC
(Commercial)
TBD Citizen- Parks and Recreation
Board
TBD Citizen- BFO participant, also
serves on Building Review Board
TBD Citizen
TBD Citizen- Economic Advisory
Commission
City Staff that may participate periodically
Dean Klingner City Staff/Fee Owner
Transportation Capital
Expansion Fees
Noelle Currell City Staff – financial support
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NorthernColoradoHomebuilder’sAssociation X X XX X X X X X
Requested Alternative 3 to provide “Option A” Funding for Transportation Expansion Fees:
The following chart would be substituted for the chart published in City Code Section 7.5‐32, in Section
16 on pages 10 and 11 of Ordinance No. 049, 2017, as published for second reading (and as published in
“Alternative 1 of Ordinance No. 049, 2017, for first reading):
TRANSPORTATION EXPANSION FEE SCHEDULE
Current
October 1, 2017
Resid., up to 700 sq. ft. $1,905.00 $2,205.00
Resid., 701 to 1,200 sq. ft. 2,143.00 4,095.00
Resid., 1,201 to 1,700 sq. ft. 3,112.00 5,317.00
Resid., 1,701 to 2,200 sq. ft. 3,112.00 6,217.00
Resid., over 2,200 sq. ft. 3,112.00 6,664.00
Commercial 11,930.00 8,113.00
Office and Other Services 7,760.00 5,977.00
Industrial/Warehouse 1,130.00 1,929.00
ATTACHMENT 4
Impact Fees Adoption
Capital Expansion, Transportation, Electric Capacity
City Council
ATTACHMENT 5
First Reading
Implement Modified Fee Proposal – Alternative 2
• 75% of Proposed CEF
• Option B for Transportation CEF
• Electric Capacity Fee as proposed
2
Form Citizen/Staff Working Team
• Understand why City has fees and how they’re used
• Understand inputs & calculations
• Evaluate methodology & alternatives
• Evaluate alternative revenue to fees
Working Group Scope
ü Understand why City has fees and
how they’re used
- Parks, General Gov’t, Fire, Police CEFs
- Transportation Capital Expansion Fee
- Utility PIFs (Water, Electric) & Raw Water
- Development Review Fees
- Connection to City Plan & Master Plans
ü Understand inputs & calculations
- Review consultant studies
- Inputs and calculations
- How does the City assess asset values?
- Cost of Capital Improvement Program
- Census Data (Functional Population & EDUs)
3
Group Position Paper on Methodologies,
Inputs, Calculations & Update Cadence for All Fees
Group Position Paper on Methodologies,
Inputs, Calculations & Update Cadence for All Fees
ü Evaluate methodology & alternatives
- Methodologies & how they work
o Plan-based / Standard-based
o Utility methodologies / Hybrid
- Industry Best Practices
- Legal constraints
- Appropriate cadence for updates
ü Appropriate public outreach
ü Alternate revenue sources to fees
Alternative 3
Alt 3 = Alt 2 with modification to the Transportation CEF
• 75% of Proposed CEF
• Option A for Transportation CEF
• Electric Capacity Fee as proposed
Transportation Option A – based on current Capital Improvement Plan
Transportation Option B – current Capital Improvement Plan without
the proportionate cost attributable for mitigation of the impacts of new
development.
4
Alternative 2 and 3 Comparison
5
Alternative 3
Alternative 2
Alternative 2 and 3 Comparison Phasing
6
Alternative 2
Alternative 3
Current 1-Oct-17 % Change
Land Use Type Fees Step 1 Step 1
Updated Fees
Resid., up to 700 sf $7,182 $7,253 1%
Resid., 701-1,200 sf 8,453 10,303 22%
Resid., 1,201-1,700 sf 9,993 11,910 19%
Resid., 1,701-2,200 sf 10,450 12,896 23%
Resid., over 2,200 sf 11,051 14,127 28%
Commercial 13,544 8,677 -36%
Office and Other Services 9,374 6,964 -26%
Industrial/Warehouse 2,535 4,003 58%
N/A N/A N/A N/A
Current 1-Oct-17 % Change
Land Use Type Fees Step 1 Step 1
Updated Fees
Resid., up to 700 sf $7,182 $7,631 6%
Resid., 701-1,200 sf 8,453 11,006 30%
Resid., 1,201-1,700 sf 9,993 12,823 28%
Resid., 1,701-2,200 sf 10,450 13,963 34%
Resid., over 2,200 sf 11,051 15,271 38%
Commercial 13,544 10,069 -26%
Office and Other Services 9,374 7,990 -15%
Industrial/Warehouse 2,535 4,334 71%
N/A N/A N/A N/A
Revenue Estimates Comparison
7
Alternative 2
Alternative 3
Gov Fire Police Neigh Comm Streets Total
Full Fees $1.1M $.7M $.3M $1.6M $2.1M $4.3M $10.3M
No Change $.8M $.5M $.3M $1.5M $1.3M $4.3M $8.6M
Annual Revenue Projection Based on prior 10 year permit Acitvity
Gov Fire Police Neigh Comm Streets Total
Full Fees $1.1M $.7M $.3M $1.6M $2.1M $5.3M $11.3M
No Change $.8M $.5M $.3M $1.5M $1.3M $4.3M $8.6M
Annual Revenue Projection Based on prior 10 year permit Acitvity
1. Alternative 2:
• CEFs @ 75% of Proposed
• Option B for Transportation CEF
• Electric Capacity Fee as proposed
• Working group works through informed consent, alternatives
2. Alternative 3:
• CEFs @ 75% of Proposed
• Option A for Transportation CEF
• Electric Capacity Fee as proposed
• Working group works through informed consent, alternatives
Summary
8
Backup
9
Impact Fees:
Why Does The City Have Them?
10
Pay your
gym
membership
More people join, pay
their dues, lines get
longer for machines as
gym builds revenue
Gym has to be
expanded for the new
members and the dues
help pay for that.
It is like a membership…..
Developers
pay impact
fees
More homes and
businesses come,
pay their fees, parks,
fire stations, streets
all are used more
Revenue that’s been
collected by the
growth helps pay for
additional
infrastructure
….and in Fort Collins, that money helps
pay for the new capital needs due to
growth
What
makes
Fort
Collins
Great!
Plan-Based =
Future cost of
Planned Capital
Needs
New Development
pays a
proportional share
of future cost
Level of Service =
Current Value of
Infrastructure
New Development
“buys-in” to the level of
service
Proportional Share
Revenues collected used
to pay for additional
assets needed for
growth
Helps Maintain the
Level of Service
Capital Expansion Fee
Two Methodologies
11
How we Calculate CEFs How we Use CEFs
Fire Fee Calculations
Fire Fees Based on:
Land + Building + Vehicle Cost
- Debt x FC Share of Calls
City’s Functional Pop
Police Fees Based on:
Land + Building + Vehicle Cost - Debt
City’s Functional Pop
General Government Fees Based on:
Land + Building - Debt
City’s Functional Pop
12
Fire Fee Calculation:
Asset values
reflect higher
construction
cost
Population
and dwelling
units per
latest Census
Added assets
with new fire
stations
Increase in Construction/Asset Values Driving Fee Increase….
Fire, Police & Government Fees Pay a Portion of New Infrastructure
Increase in Construction/Asset Values Driving Fee Increase….
Fire, Police & Government Fees Pay a Portion of New Infrastructure
Total Replacement cost of stations,
apparatus, admin, training facilities
Functional population
Parks Fee Calculations
Parks Fees Based on:
• Neighborhood Parks :
• Radiant (2013)
• Waters Way (2012)
• Registry (2012)
• Community Parks :
• Spring Canyon (2006)
• Fossil Creek (2003)
13
Parks Fee Calculation:
Asset values
reflect higher
construction
cost
Population
and dwelling
units per
latest Census
Land values
reflect higher
land cost
Increase in Construction & Land Values Driving Increase….
Parks Fees Pay All Capital Needs for New Parks
Average Cost/Acre of Last 2-3 Parks
Equivalent Dwelling Units
Typical Park Elements
14
Community Parks
• Large Recreation Facilities
• Small/Specialty Recreation Facilities
• Dog Park
• Destination Playground
• Multi-Purpose Fields
• Passive Green Space
• Restrooms
• Shelters
• Walks/Trails
• Raw Water Irrigation Pond
• Naturalistic Features
• Unique Elements
• Parking/Drives
Neighborhood Parks
• Multi-purpose Green/Fields
• 1 Small/Specialty Recreation Facility
• 1 Restroom
• 1 Shelter
• Playground
• Walks
• Raw Water Irrigation Pond (if feasible)
Typical Community Park Elements
15
Twin
Silo
Spring
Canyon
Fossil
Creek
Rolland
Moore Edora
Lee
Martinez City
Large Recreation Facilities 3T, 2B 3T, 2B 5T, 2B 4T, 2B 6T, 2B 4T, 2B 3T, 2B
Small/Specialty Recreation
Facilities
BMX,
4 PB
3BB, SP, 2 SV,
VB, MBP, BMX
2BB, 1 SP,
Hockey
5BB, 1PB, 4SV,
2H, 3R
35H, Disc Golf,
SP
3BB BB, 2H
Dog Park 1 acre 2 acre 1 acre None None None None
Destination Playground 1 1 1 1 1 1 1.5
Multi-Purpose Fields 10.4 acres 18.3 acres 6.3 acres 16 acres None None 6 acres
Passive Green Space 6.2 acres 8 acres 8.7 acres 1.8 acres 5.5 acres 18 acres 23.3 acres
Restrooms 2 3 3 2 2 2 1
Shelters 1G 5G, 3P 2G, 1P 4G 1G, 3P 1G 7G, 3P
Walks/Trails 2.7 miles 2.5 miles 1.3 miles 1.5 miles 0.5 miles 1.8 miles 1.5 miles
Raw Water Irrigation Pond 3 acres 1.5 acres 11 acres 2 acres 1.5 acres 9.3 acres 14.5 acres
Naturalistic Features Creek Play, Native
Areas
Native Areas Native Areas Creek Edge Creek Edge Native Areas Lake Edge
Unique Elements Harvest Room,
Orchard, Trellis, CG
Spray Park Water Feature CG CG Fitness Stations Pool, Fitness Stations,
Train
Parking / Drives 232 + 729 (school) 439 spaces 453 spaces 418 spaces 427 spaces 73 spaces 756 spaces
Legend: T- Tennis B-Ballfield BB-Basketball SP-Skate Park SV-Sand Volleyball PB-Picklelball R-Racquetball MBP – MtnBike Park H-Horseshoe
BMX – Bike Race CG-Community Garden G-Group Shelter P-Picnic Shelter
Typical Neighborhood Park Elements
16
2013
Radiant
2012
Registry
2011
Waters
Way
2004
Soft
Gold
2004
Westfield
2003
Homestead
2001
Harmony
2000
Cottonwood
Glen
1999
Stewart
Case
1997
Miramont
Multi-Purpose
Green/Fields 3.3 acres 2 acres 4 acres 4.8 acres 5 acres 2.5 acres 3 acres 5.8 acres 6 acres 3.5 acres
1 Small/Specialty
Recreation Facility
None 1/2BB,
1/2 T
1BB, 1
SP
1B, 2BB,
BMX
3T, 1B 2BB 2B 2BB, 1B 1BB, 1B 1BB
1 Restroom ü ü ü ü ü ü ü ü ü ü
1 Shelter ü ü ü ü ü ü ü ü ü ü
Playground ü ü ü ü ü ü ü ü ü ü
Walks
0.8 miles 0.8 miles 1 mile 0.5 miles 0.5 miles 0.5 miles 0.5 miles 1 mile 0.5 miles 0.8 miles
Raw Water
Irrigation Pond
(if feasible)
None None 31 acres 1 acre 0.8 acres None 1 acre 1.5 acres 1 acre 1 acre
Legend: T- Tennis B-Ballfield BB-Basketball SP-Skate Park SV-Sand Volleyball BMX – Bike Race
17
($000’s) Twin Silo Spring Canyon Fossil Creek
Large Recreation Facilities $1,642 $879 $1,524
Small/Specialty Recreation Fac. 476 723 602
Dog Park 176 198 45
Destination Playground 1,326 1,095 564
Multi-Purpose Fields 803 1,630 889
Passive Green Space 775 1,839 867
Restrooms 1,150 894 965
Shelters 325 545 412
Walks/Trails 708 1,482 1,262
Raw Water Irrigation Pond 235 414 195
Naturalistic Features 708 728 195
Unique Elements 820 201 444
Parking/Drives 2,150 2,181 1,298
TOTAL - PARK ELEMENTS $11,294 $12,809 $9,262
Community Park Element
Construction Costs
Spring Canyon and
Fossil Creek Park
values are based
on 2016 estimated
replacement costs
Twin Silo Park
values are actual
construction costs
Community Park Construction Costs
18
($0,000s) Twin Silo Spring Canyon Fossil Creek
Park Elements $11,294 $12,809 $9,262
Contractor Fees 883 550 705
Development Fees 1,947 484 565
Design Fees 891 1,456 1,203
Raw Water 771 2,600 971
TOTAL $15,786 $17,899 $12,706
Note: All values provided are estimated costs to construct each park in 2016.
Neighboring Communities – Park Comparisons
NRPA* Fort Collins Loveland Boulder Longmont Greeley Windsor Wellington Arvada
Estimated Population 161,000 75,182 107,167 90,000 101,100 24,500 8,500 113,326
Number of Parks 60 35 65 42 40 16 8 109
Existing Acres of Park 1,025 492 1,173 453 752 184 110 1,747
Average Residents Per Park 2,266 2,683 2,148 1,649 2,143 2,528 1,531 1,063 1,040
Acres of Parkland/1,000 Residents 9.6 6.4 5.75 10.9 5.0 NA 7.5 12.9 15.4
Projected Acres of Parkland/1,000
Residents at City Build Out 5.1 9.6 9.8 41.0
Impact Fee for New Park
Development Yes Yes Yes Yes Yes Yes
Park Impact Fees $3,424.50 $5,561.00 $4,010.00 $3,974.50 $2,478.00 $2,481.00
*2017 National Recreation & Parks Association Benchmark
Parks Fees:
Construction Cost Increase
20
• Worked with Ditesco Engineering Firm to evaluate current cost estimates for Spring Canyon and
Fossil Creek to build same level of park based on their design standards
Neighborhood Park Development Cost per Acre
Original Current Cost/
Park/Year of Construction Cost Cost Acres Acre 2016
Radiant Park/2013 $2.2M $2.5M 10.00 $265K
Waters Way Park/2012 $1.9M $2.1M 10.00 $226K
RegistryPark/2012 $1.7M $1.8M 7.10 $274K
Weighted Average $5.8M $6.3M 27.10 $253K
Community Park Development Cost per Acre
Original Current Cost/
Park/Year of Construction Cost Cost Acres Acre 2016
Spring Canyon Park/2006 $12.5M $17.9M 103.0 $200K
Fossil Creek Park/2003 $9.3M $12.7M 99.5 $154K
Weighted Average $21.9M $30.6M 202.5 $177K
21
Option A – Based on the City’s current Capital Improvement Plans,
includes the proportionate cost attributable for mitigation of the impacts
of new development on the transportation system, including new streets,
intersection improvements, and multi-modal improvements
Transportation Capital Expansion Fee
Examples:
• Portions (~60%) of “build-out” of complete streets in Master Street Plan.
(Suniga, Mountain Visa, Trilby Extension, Sharp Point, etc.)
• Portions (~12%) of improvements to existing arterial intersections
• Portions (~12%) of the Bicycle Master Plan (low stress network, etc.) and
Pedestrian Master Plan (missing connections, etc.)
22
Transportation Capital Expansion Fee
Option B – Based on the City’s current Capital Improvement Plan
without the proportionate cost attributable for mitigation of the impacts of
new development.
ü Does not increase program revenue
ü Provides approximately 80% of necessary funding to
mitigate proportional impacts of development
Rationale for Change in
Calculation & Fee increase
23
Option A and B- Calculation Change – modified to include trip
length
• Impact on transportation system is more accurately measured by miles
traveled than number of trips
• Results in better proportionality and fairness
• Does not increase overall revenue – raises residential/lowers commercial
Option A only- Fee Increase From Current Capital Improvement
Plan (~20%)
• Current fee does not account for impact of development on existing system
• Adds proportional costs to build entire system (bike plan / ped plan / existing
intersections)
Revenue Difference
Transportation Option A vs B
24
Utility Fees:
Electric Capacity Fee
25
Methodology – Change from Plan-Based to “Buy-In”
Rational: Shift in costs from residential to commercial based on demands
on system infrastructure
-60%
-40%
-20%
0%
20%
40%
60%
80%
100%
% Change Being Proposed to ECF % of Projects Developed in 2016
Single Family
Multi-family
Mixed Use
Commercial
Utility Fees:
Electric Demand by Rate Class
26
Rate Class
% Total
Customers % Total Demand
Commercial - small 9.9% 10.6%
Commercial - medium 0.8% 4.9%
Commercial - large 0.7% 21.3%
Industrial 0.0% 19.0%
Residential 88.6% 44.2%
Total 100.0% 100.0%
Rationale for Change in Methodology
Electric
27
The current method is:
• Difficult to explain - cost allocation
methodology
• Designed for “green field” development
• Uses planning assumptions instead of real
data
The proposed method is:
• More transparent and understandable
• Properly accounts for demands on
infrastructure
• Utilizes actual data – more accurate
demand based cost allocation
Single Family 21 $532K $258K -$273K
Multi-family 8 $1745K $1246K -$499K
MixedUse 3 $252K $438K $187K
Commercial 48 $1748K $2517K $768K
2016 ECF Projects
by Type
Number of
Projects in 2016
ECF (Current
Method)
ECF (Proposed
Method)
Change
(Proposed Less
Utility Fees:
New Development Electric Capacity
28
Utility Fees:
Re-development Electric Capacity
29
Customer Type
(Sample
projects) Example Re-develoment
Existing ECF
($)
Proposed ECF
($)
Difference
($)
Percent
Change
Residential
Upgrade from 150 to 200
amps $ 875.00 $ 328.55 $ (546.45) -62%
Commercial
Upgrade from 600 amps to
800 amps (208v) $ 5,065.84 $ 9,825.17 $ 4,759.33 94%
Commercial
Upgrade from 200 amps to
400 amps (208v) $ 5,065.80 $ 9,378.47 $ 4,312.67 85%
Commercial
Upgrade from 1000 amps
at 240v to 1000 amps
208v $ 8,455.48 $ 16,547.00 $ 8,091.52 96%
Combined Fees
Alternative 1
30
Electric Total $ Change % Change
Land Use Type Unit
Capacity
Fees
CEFs +
Transp
Current vs
Updated
Current vs
Updated
Updated Fees
Resid., up to 700 sf Dwelling $5,436 $2,205 $1,349 $8,990 $1,808 25%
Resid., 701-1,200 sf Dwelling 7,291 4,095 1,443 12,829 4,376 52%
Resid., 1,201-1,700 sf Dwelling 7,958 5,317 1,537 14,812 4,819 48%
Resid., 1,701-2,200 sf Dwelling 8,051 6,217 1,708 15,976 5,526 53%
Resid., over 2,200 sf Dwelling 8,971 6,664 1,879 17,514 6,463 58%
Commercial 1,000 sf 2,381 8,113 170 10,664 -2,880 -21%
Office and Other Services 1,000 sf 2,381 5,977 227 8,585 -789 -8%
Industrial/Warehouse 1,000 sf 559 1,929 1,986 4,474 1,939 76%
CEF
Sub-
Total
Transp.
Option
A
3 Step Phasing Over 27 Months
Alternative 1
31
*These numbers do not include inflation estimates. Fees will be adjusted annually for CPI and CCI indices
• Capital Expansion Fees - 3 steps beginning Oct 1
• Transportation CEFs - 2 steps…Option B then Option A
• Electric Capacity – 1 step beginning Oct 1
Phasing Recommendation:
Current 1-Oct-17 1-Jan-19 1-Jan-20 % Change % Change % Change
Land Use Type Fees Step 1 Step 2 Step 3 Step 1 Step 2 Step 3
Updated Fees
Resid., up to 700 sf $7,182 $7,091 $8,229 $8,990 -1.3% 16% 9%
Resid., 701-1,200 sf 8,453 9,958 11,745 12,829 18% 18% 9%
Resid., 1,201-1,700 sf 9,993 11,568 13,647 14,812 16% 18% 9%
Resid., 1,701-2,200 sf 10,450 12,642 14,842 15,976 21% 17% 8%
Resid., over 2,200 sf 11,051 13,711 16,184 17,514 24% 18% 8%
Commercial 13,544 8,559 10,307 10,664 -37% 20% 3%
Office and Other Services 9,374 6,846 8,229 8,585 -27% 20% 4%
Industrial/Warehouse 2,535 3,976 4,390 4,474 57% 10% 2%
Capital Expansion Fees
Alternative 2- Fees @ 75% of Proposed
Ø Methodology:
Ø Level of Service – no change
Ø Updated asset values to
current replacement cost
Ø Updated Population and
dwelling units
Ø Increase driven by
construction & land cost
Ø Park Fees driving 75% of
increase
32
Transportation CEF
Alternative 2- Option B
33
Ø Methodology:
Ø Plan Based – no change
Ø Change in Calculation:
Ø Trip Generation to Vehicle Miles Traveled
Ø Option B - Updated plan based
on portion of CIP
Ø Excludes existing arterial intersection
improvements and portions of Bike/Ped
Plans. Revenue Neutral.
Ø Increases Residential &
Industrial and Lowers Comm.
$ Change % Change
Land Use Type Unit
Current
vs
Updated
Current
vs
Updated
Updated Fees
Resid., up to 700 sf Dwelling $1,827 -$78 -4%
Resid., 701-1,200 sf Dwelling 3,392 1,249 58%
Resid., 1,201-1,700 sf Dwelling 4,404 1,292 42%
Resid., 1,701-2,200 sf Dwelling 5,150 2,038 65%
Resid., over 2,200 sf Dwelling 5,520 2,408 77%
Commercial 1,000 sf 6,721 -5,209 -44%
Office and Other Services 1,000 sf 4,951 -2,809 -36%
Industrial/Warehouse 1,000 sf 1,598 468 41%
Transp.
Option
B
Alternative 1 and 2 Comparison Phasing
34
Alternative 1
Alternative 2
Current 1-Oct-17 % Change
Land Use Type Fees Step 1 Step 1
Updated Fees
Resid., up to 700 sf $7,182 $7,253 1%
Resid., 701-1,200 sf 8,453 10,303 22%
Resid., 1,201-1,700 sf 9,993 11,910 19%
Resid., 1,701-2,200 sf 10,450 12,896 23%
Resid., over 2,200 sf 11,051 14,127 28%
Commercial 13,544 8,677 -36%
Office and Other Services 9,374 6,964 -26%
Industrial/Warehouse 2,535 4,003 58%
N/A N/A N/A N/A
Transportation CEF-
Alternative 3: Option A
35
Ø Methodology:
Ø Plan Based – no change
Ø Change in Calculation:
Ø Trip Generation to Vehicle Miles
Traveled
Ø Option A - Updated to include
Current City Capital
Improvement Plan
Ø Increases Residential &
Industrial and Lowers Comm.
$ Change % Change
Land Use Type Unit
Current
vs
Updated
Current
vs
Updated
Updated Fees
Resid., up to 700 sf Dwelling $2,205 $300 16%
Resid., 701-1,200 sf Dwelling 4,095 1,952 91%
Resid., 1,201-1,700 sf Dwelling 5,317 2,205 71%
Resid., 1,701-2,200 sf Dwelling 6,217 3,105 100%
Resid., over 2,200 sf Dwelling 6,664 3,552 114%
Commercial 1,000 sf 8,113 -3,817 -32%
Office and Other Services 1,000 sf 5,977 -1,783 -23%
Industrial/Warehouse 1,000 sf 1,929 799 71%
Transp.
Option
A
Fort Collins Cost of Code
36
$5,875
2015 IRC: Currently being finalized, no
significant cost changes expected
2012 IRC: Underfloor framing fire protection
2012 Green Code (Local Amendments):
Resource, energy and water efficiencies,
indoor environment quality, operations,
maintenance and education
2009 IRC: Additional insulation required for
electric heat homes
Neighboring Community
Fee Comparison*
37
*Includes CEFs, Transportation, Utility PIFs,
excludes Raw Water, Building Permit Fees
Level of Service Higher in Fort Collins
Fort Collins Fees Consistent with Neighboring Communities…
Level of Service Higher in Fort Collins
Fee Comparison:
For Median New Home Sales Price $437K
38
Fort Collins
Without Raw Water, Fort Collins Fees Moving to the Middle of the Pack
Fort Collins Fee Stack
Median Home Sales*
39
*Home Sales from
IRES Report,
Everitt Real Estate
Center, CSU
Fort Collins Fee Stack
Median New Home Sales*
40
*New Home Sales from
Metrostudy Market
Reports 2016
Fort Collins Fees & Code Cost Impact is Declining %
of Average New Home Sales Price
Fort Collins Fees & Code Cost Impact is Declining %
of Average New Home Sales Price
Peer Cities
Median Sales Comparison with Fees
41
Public Outreach
42
Future Fee Updates Will Include Work Group of City Staff, Council, Public
What We Heard….
Boards and Commissions
43
Parks & Rec
Concerned
about housing
affordability
Level of
service of
parks has
increased
dramatically
Economic
Advisory
Commission
In support of
fees
Concerns
about funding
gap
Affordable
Housing
Board
Increases will
“Chill”
affordable
housing
projects
Want more
lead time
before fees
are effect. (6+
months)
Human
Relations
Commission
Need to
incentivize
smaller units
Shouldn’t be
burdening
residential
over comm.
Housing
Catalyst
Big concerns
on affordable
housing
> Lead time
for implement.
of fees
Want fees
phased in
over time
What We Heard….
Business Community
44
Chamber
MF hit hardest, will
impact what gets
developed
Concerns about cost
of doing business in
FC
Fees increases
phased in over time
NoCO
Homebuilders
Asked for more lead
time
Disagree with how
land value is
assessed
Increased housing
drives developers
out
Board of
Realtors
Huge impacts to
MF, this will dis-
incentivize smaller
units
Want more lead
time before fees are
effect. (6+ months)
Downtown
Development
Authority
Concerns about
impacts to small
businesses
Would like a waiver
process for
affordable housing
Developers already
feel fees are high
North Fort
Collins
Business
Assn
Perceptions of City
“gold-plating”
assets/infrastructure
City needs to
establish standards
for assets
Huge impacts to
housing affordability
Methodology
Peer Cities
45
With a Few Exceptions, Peer Cities Currently All Have
Similar Methodology
Population
46
Percent
Housing Type 2000 Current Change
Single-Family, Detached/Attached/MH 2.74 2.66 -2.92%
Multi-Family 1.91 1.93 1.05%
Total 2.45 2.43 -0.82%
Average HH Size
2016 2012
Average Average
Housing Type Unit HH Size HH Size
Single-FamilyDetached Dwelling 2.75 2.76
Multi-Family Dwelling 1.93 1.85
Residential,up to 700 sq. ft. Dwelling 1.78 1.86
Residential,701-1,200 sq. ft. Dwelling 2.40 2.38
Residential,1,201-1,700 sq. ft. Dwelling 2.61 2.62
Residential,1,701-2,200 sq. ft. Dwelling 2.65 2.73
Residential,over 2,200 sq. ft. Dwelling 2.95 2.93
Consumer Price Index (CPI) vs
Construction Cost Index (CCI)
Recent CPI and CCI Indices Don’t Indicate Cost Inflation 47
Despite Perceived Rising Construction Costs In Front Range
Recent CPI and CCI Indices Don’t Indicate Cost Inflation
*Source for CPI =
Bureau of Labor
Statistics, Denver-
Boulder-Greeley
Source for CCI =
Engineering News
Record, Denver
48
Fee Coordination
Objective & Timeline
Objective:
1. Bring fees forward for review together to provide holistic view of the impact
2. Detailed fee study analysis every 4 years for CEF, Transportation & Development fees
3. Detailed fee study analysis every 2 years for Utility fees
4. Conduct fee study analysis in the odd year before BFO
2018 2019 2020
Phase I - Impact Fees QII QIII QIV QI QII QIII QIV QIV QIV QIV QIV
Capital Expansion Fees Index Adopt Index Index Index Index Study Adopt
StreetOversizings Index Adopt Index Index Index Index Study Adopt
Utility PIF & Fees Adopt All Adopt Study Adopt
Phase II - Impact & Development Fees
Utility PIF & Fees Adopt
Development Fees Adopt Study Adopt
Phase III - Administrative Fees
Administrative Fees Evaluation Adopt Adopt
Wet Study
2021
Electric& CIL
Fee Study
Fee Study
Fee Study
2016 2017
-1-
ORDINANCE NO. 049, 2017
OF THE COUNCIL OF THE CITY OF FORT COLLINS
AMENDING CHAPTERS 7.5, 8 AND 24 OF THE CODE OF THE CITY OF FORT
COLLINS CONCERNING REVISIONS TO TERMINOLOGY AND DECREASES AND
PHASED INCREASES OF THE CAPITAL EXPANSION FEES AND AMENDING
SECTION 3.3.2(G) OF THE LAND USE CODE TO REVISE RELATED TERMINOLOGY
WHEREAS, the City is a home rule municipality having the full right of self-government
in local and municipal matters under the provisions of Article XX, Section 6 of the Colorado
Constitution; and
WHEREAS, among the home rule powers of the City is the power to regulate, as a matter
of purely local concern, the development of real property within the City and establish impact
fees for such development; and
WHEREAS, the City Council has determined that new development should contribute its
proportionate share of providing the capital improvements that are typically funded with impact
fees; and
WHEREAS, the City Council has broad legislative discretion in determining the
appropriate funding mechanisms for financing the construction of public facilities in the City;
and
WHEREAS, in early 2016, City staff initiated a comprehensive review of its various
impact fees now charged to new development, including its community parkland, neighborhood
parkland, police, fire protection, general government and street oversizing capital improvement
expansion fees (collectively, “Capital Expansion Fees”); and
WHEREAS, as a result of that review, the City commissioned an impact fee study for the
community parkland, neighborhood parkland, police, fire protection and general government
capital improvement expansion fees that has resulted in the “Capital Expansion Fee Study” dated
August 2016, which has identified the need to increase such Capital Expansion Fees by various
amounts; and
WHEREAS, the City also commissioned an impact fee study for the street oversizing
capital improvement expansion fee that has resulted in the “Transportation Capital Expansion
Fee Study” dated April 2017, which has also identified the need to increase and decrease the
street oversizing capital improvement expansion fees by various amounts depending on the type
of development proposed; and
WHEREAS, City Council has nevertheless decided to only increase, beginning on
October 1, 2017, the Capital Expansion Fees to seventy-five percent (75%) of the amounts
recommended in the Capital Expansion Fee Study and the Transportation Expansion Fee to the
lesser amount recommended in the Transportation Capital Expansion Fee Study; and
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WHEREAS, the City Manager is directed to form a working-group of City staff and
community stakeholders to review the Studies, to consider any future changes to the City’s
Capital Expansion Fees based on the Studies, and to present the recommendations of that
working-group to the Council with any such proposed changes; and
WHEREAS, the City Council has also decided to appoint a member of City Council to
act as a liaison for communications between the City Manager and his working-group and this
Council; and
WHEREAS, in addition, some of the terminology used in Chapters 7.5, 8, and 24, and
used in Section 3.3.2(G) of the Land Use Code, is also being revised; and
WHEREAS, for the foregoing reasons, the City Council has determined that it is in the
best interest of the City and its citizens and necessary for the protection of the public’s health,
safety and welfare, that the Capital Expansion Fees be decreased and increased as hereafter
provided.
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF
FORT COLLINS as follows:
Section 1. That the City Council hereby makes and adopts the determinations and
findings contained in the recitals set forth above.
Section 2. That the title of Section 7.5, Article II is hereby amended to read as
follows:
ARTICLE II. - CAPITAL EXPANSION FEES
Section 3. That Section 7.5-16 of the Code of the City of Fort Collins is hereby
amended to read as follows:
Sec. 7.5-16. - Intent.
The provisions of this Article are intended to impose certain fees to be collected at the time of
building permit issuance in an amount calculated as shown herein for the purpose of funding the
provisions of additional capital improvements as the City's population increases. The imposition
of said fees is intended to regulate the use and development of land by ensuring that new growth
and development in the City bear a proportionate share of the costs of capital expenditures
necessary to provide community parkland, police, fire protection, general government,
neighborhood parkland and transportation capital improvements. Said fees shall not be used to
collect more than is necessary to fund such capital improvements. The fees provided for in this
Article are based on the City's Capital Expansion Fee Study, dated August 2016, as amended; the
City’s Transportation Capital Expansion Fee Study dated April 2017, as amended, which
establish a fair and equitable allocation of costs and recognize past and future payments for new
development, as well as credits for construction, dedication of land or cash contributions. Funds
collected from said fees shall not be used to remedy existing deficiencies, but only to provide
new capital improvements which are necessitated by new development. The amount of revenue
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generated by said fees shall not exceed the cost of providing the capital improvements for which
they are imposed, and the same shall be expended solely to provide the specified capital
improvements.
Section 4. That Section 7.5-17 of the Code of the City of Fort Collins is amended to
read as follows:
Sec. 7.5-17. Definitions
. . .
Capital expansion fee(s) shall mean individually and collectively the fees established in
§§ 7.5-28, 7.5-29, 7.5-30, 7.5-31, 7.5-32 and 7.5-71.
Capital improvements shall mean the purchase or long-term lease or lease-purchase of
real property, the construction of public facilities or the purchase or long-term lease or
lease-purchase of equipment or materials needed to facilitate the operation of such
facilities or the delivery of services therefrom, to the extent that such property,
improvements, equipment or materials are identified in the City's capital improvements
plan as being totally or partially financed by the imposition of capital expansion fees. For
the purposes of this provision, long-term lease or lease-purchase shall mean a lease or
lease-purchase of not less than five (5), subject to annual appropriation. Amounts
expended for capital improvements shall include amounts that are treated as capitalized
expenses according to generally accepted accounting principles and shall not include
costs associated with the operation, administration, maintenance or replacement of capital
improvements.
. . .
Transportation expansion fee shall mean the fee established in § 7.5-32.
Transportation improvements shall mean those capital improvements needed to construct
arterial or collector streets as shown in the City’s adopted Master Street Plan, as
amended, shall include, without limitation, the following capital improvements as
described in said Master Street Plan or as described in the City’s adopted Bicycle Master
Plan and Pedestrian Master Plan, as these plans may be hereafter amended: right-of-way
acquisition; vehicle and bicycle lanes; curbs, gutters and other drainage structures;
pedestrian ways; traffic control devices and signals; medians and median landscaping;
and transit facilities, including, without limitation, transit stops and rolling stock, to the
extent that such transit facilities are reasonably necessary to expand the City's transit
system so as to provide transit services to feepayers. However, transportation
improvements shall not include the local street portion and related capital improvements
required for a developed parcel under this Code and the Land Use Code.
Section 5. That Section 7.5-18 of the Code of the City of Fort Collins is hereby
amended to read as follows:
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Sec. 7.5-18. - Calculation of capital expansion fees.
For each category of capital improvements for which a capital expansion fee is established under
the provisions of this Article, the amount of each such capital expansion fee shall be determined
on a per dwelling unit basis according to the gross floor area of each such dwelling unit (in the
case of residential development) or on the basis of each square foot of new construction (in the
case of commercial or industrial development). The amount of the transportation expansion fee
shall be determined on the basis of square footage for residential development and based on type
of use for other developments. The amount of each capital expansion fee, except for the
transportation expansion fee, will be increased or decreased annually according to the Denver-
Boulder Consumer Price Index for Urban Consumers, as published by the Bureau of Labor
Statistics. The amount of the transportation expansion fee will be increased or decreased
annually according to the Engineering News Record Denver Regional Construction Cost Index.
In addition, the methodologies used to set each fee shall be reviewed and compared to the City's
actual infrastructure costs at least once every five (5) years, and adjustments made in accordance
with such review and with the provisions of § 7.5-16.
Section 6. That Section 7.5-19 of the Code of the City of Fort Collins is hereby
amended to read as follows:
Sec. 7.5-19. - Imposition, computation and collection of fees.
(a) Payment of the fees imposed under the provisions of this Article shall be required as a
condition of approval of all development in the City for which a building permit is required.
The amount of such fees has been calculated using current levels of service and the data and
methodologies described in the City’s Capital Expansion Fee Study, dated August 2016, as
amended; and the City’s Transportation Capital Expansion Fee Study dated April 2017, as
amended. The fees due for such development shall be payable by the feepayer to the
Building Official prior to or at the time of issuance of the first building permit for the
property to be developed, except to the extent that an agreement deferring all or any portion
of such payment has been executed by the City providing for a different time of payment
approved by the City Council by resolution. If, during the period of any such deferral, the
amount of the deferred fee is increased by ordinance of the City Council, the fee rate in
effect at the time of payment shall apply. If the building permit for which a fee has been paid
has expired, and an application for a new building permit is thereafter filed, any amount
previously paid for a capital expansion fee and not refunded by the City shall be credited
against any additional amount due under the provisions of this Article at the time of
application for the new building permit.
. . .
Section 7. That Section 7.5-20 of the Code of the City of Fort Collins is hereby
amended to read as follows:
Sec. 7.5-20. - Offsets and credits.
(a) The City shall offset the reasonable costs of any capital improvements constructed, or real
property dedicated, by or on behalf of any property owner or developer of real property from
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whom a fee is due and payable under this Article for that category of capital improvement,
pursuant to the following requirements and any additional administrative regulations that
may be established by the City Manager:
(1) No offset or credit shall be given for the dedication or construction of capital
improvements not shown on the City's capital improvements plan, or, in the case of the
transportation expansion fee, for any capital improvement other than a transportation
improvement, unless otherwise agreed to by the City.
. . .
(4) A property owner or developer claiming entitlement to an offset or credit shall apply for
the same prior to or at the time of application for the issuance of any building permit for
the development in question, which application shall be on a form provided by the City
for such purpose. Upon receipt of such application, the Financial Officer or, in the case
of the transportation expansion fee, the City Engineer, shall determine, in writing, the
maximum value of the offset or credit that may be applied against fees due and payable
from the applicant.
. . .
Section 8. That Section 7.5-22 of the Code of the City of Fort Collins is hereby
amended to read as follows:
Sec. 7.5-22. - Use of fee proceeds.
(a) The fees collected for each category of capital improvement specified in Division 2 of
this Article shall be used to finance or to recoup the costs of any capital improvements identified
in the applicable capital improvements plan, except that fees collected for transportation
improvements shall be used only to finance or recoup the costs of such improvements. Eligible
costs which may be paid from revenues derived from such fees may include, without limitation,
planning, design, surveying, permitting and engineering costs; the cost of purchasing or leasing
real property; construction costs; other capital improvement costs; and the costs of administering
the collection and expenditure of the fees. The proceeds of such fees may also be used to pay the
principal sum and interest and other finance costs on bonds, notes or other obligations issued by
or on behalf of the City to finance such capital improvements. The City shall be entitled to retain
four (4) percent of the fees collected under this Article to cover the costs associated with the
collection of the same, and the administration, investment, accounting, expenditure and auditing
of the funds collected.
(b) Fees collected under the provisions of this Article shall not be used to pay for any of the
following expenses:
(1) Costs incurred for the construction, acquisition or expansion of capital
improvements or assets other than those identified in the applicable capital improvements
plan or in the case of the transportation expansion fee, any capital improvement other
than a transportation improvement;
(2) Costs incurred for the repair or maintenance of existing or new capital
improvements or facilities expansions; or
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(3) Costs incurred for the ongoing administration or operation of the funded and
constructed capital improvements.
(c) Annually, the City Manager shall present to the City Council a proposed capital
improvement program for each capital improvement for which a capital expansion fee is
charged. Such program shall assign funds, including any accrued interest, from the several
capital expansion fee accounts to specific capital improvement projects and related expenses.
Section 9. That Section 7.5-23 of the Code of the City of Fort Collins is hereby
amended to read as follows:
Sec. 7.5-23. - Appeals.
. . .
(b) The burden of proof in any such hearing shall be on the applicant to demonstrate that the
amount of fee or offset or credit was not properly calculated by the City. In the event of an
appeal of the amount of a fee, the feepayer shall, at his or her expense, prepare and submit to
the City Manager an independent fee calculation study for the fee in question. The
independent fee calculation study shall follow the methodologies used in the City’s Capital
Expansion Fee Study, dated August 2016, as amended, or the City's Transportation Capital
Expansion Fee Study dated April 2017, as amended, whichever is applicable. The
independent fee calculation study shall be conducted by a professional in impact fee
analysis. The burden shall be on the feepayer to provide the City Manager all relevant data,
analysis and reports which would assist the City Manager in determining whether the capital
fee should be adjusted. The City Manager shall modify said amount only if there is
substantial competent evidence in the record that the City erred, based upon the
methodologies contained in the City’s Capital Expansion Fee Study, dated August 2016, as
amended, or the City's Transportation Capital Expansion Fee Study dated April 2017, as
amended, whichever is applicable.
Section 10. That Section 7.5-24 of the Code of the City of Fort Collins is hereby
amended to read as follows:
Sec. 7.5-24. - Entitlement to refunds for nonappropriation/nonexpenditure.
. . .
(b) In determining whether fee revenues have been appropriated or expended within the
requisite periods of time specified in Subsection (a), monies in the applicable capital
expansion fee funds and accounts shall be considered to be appropriated and expended on a
first in, first out basis; that is, the first fees paid shall be considered the first fees
appropriated and expended.
. . .
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Section 11. That Section 7.5-25 of the Code of the City of Fort Collins is hereby
amended to read as follows:
Sec. 7.5.25 – Procedure to obtain refund.
. . .
(d) With respect to refunds based upon abandonment, within ten (10) working days after the
application is determined sufficient and site restoration has been completed as required
pursuant to § 7.5-24.1, the applicant shall be entitled to a refund, except that the City shall
retain an additional two (2) percent of the amount of the fee to be refunded to offset the
costs of administering the refund.
. . .
Section 12. That Section 7.5-28 of the Code of the City of Fort Collins is hereby
amended to read as follows:
Sec. 7.5-28. - Community parkland capital expansion fee.
(a) There is hereby established a community parkland capital expansion fee which shall be
imposed pursuant to the provisions of this Article for the purpose of funding capital
improvements related to the provision of community parks, as such improvements may be
identified in the capital improvements plan for community parkland. Such fee shall be
payable prior to the issuance of any building permit for a residential structure. The amount
of such fee shall be determined per dwelling unit as follows:
Current
As of
October 1, 2017
Resid., up to 700 sq. ft. $1,102.00 $1,513.00$1,751.00
Resid., 701 to 1,200 sq. ft. 1,414.00 1,984.00 2,432.00
Resid., 1,201 to 1,700 sq. ft. 1,562.00 2,178.00 2,558.00
Resid., 1,701 to 2,200 sq. ft. 1,628.00 2,234.00 2,585.00
Resid., over 2,201 sq. ft. 1,743.00 2,442.00 2,881.00
In the case of duplexes and multi-family structures, the amount of the fee for each dwelling unit
shall be based upon the average size of the dwelling units contained within each such structure.
(b) All fees collected under this Section shall be deposited into the "community parkland capital
expansion fee account" established in § 8-95. This account shall be an interest bearing
account, and any interest income earned on the fees shall be credited to the account. Funds
withdrawn from the community parkland capital expansion fee account shall be used only
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for the purposes specified in Subsection (a) of this Section and said expenditures shall be
subject to the provisions of this Article.
Section 13. That Section 7.5-29 of the Code of the City of Fort Collins is hereby
amended to read as follows:
Sec. 7.5-29. - Police capital expansion fee.
(a) There is hereby established a police capital expansion fee which shall be imposed pursuant
to the provisions of this Article for the purpose of funding capital improvements related to
the provision of police services, as such improvements may be identified in the capital
improvements plan for police services. Such fee shall be payable prior to the issuance of any
building permit for a residential, commercial or industrial structure. The amount of such fee
shall be determined as follows:
Current
As of
October 1, 2017
Resid., up to 700 sq. ft. $141.00 $177.00
Resid., 701 to 1,200 sq. ft. 178.00 239.00
Resid., 1,201 to 1,700 sq. ft. 198.00 260.00
Resid., 1,701 to 2,200 sq. ft. 206.00 264.00
Resid., over 2,2001 sq. ft. 220.00 294.00
Commercial buildings (per 1,000
sq. ft.)
169.00
223.00
Industrial buildings (per 1,000 sq.
ft.)
41.00
52.00
In the case of duplexes and multi-family structures, the amount of the fee for each dwelling unit
shall be based upon the average size of the dwelling units contained within each such structure.
(b) All fees collected under this Section shall be deposited into the "police capital expansion fee
account" established in § 8-96. This account shall be an interest bearing account, and any
interest income earned on the fees shall be credited to the account. Funds withdrawn from
the police capital expansion fee account shall be used only for the purposes specified in
Subparagraph (a) of this Section and said expenditures shall be subject to the provisions of
this Article.
Section 14. That Section 7.5-30 of the Code of the City of Fort Collins is hereby
amended to read as follows:
Sec. 7.5-30. - Fire protection capital expansion fee.
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(a) There is hereby established a fire protection capital expansion fee which shall be imposed
pursuant to the provisions of this Article for the purpose of funding capital improvements
related to the provision of fire services, as such improvements may be identified in the
capital improvements plan for fire protection services. Such fee shall be payable prior to the
issuance of any building permit for a residential, commercial or industrial structure. The
amount of such fee shall be determined as follows:
Current
As of
October 1, 2017
Resid., up to 700 sq. ft. $281.00 $377.00
Resid., 701 to 1,200 sq. ft. 357.00 509.00
Resid., 1,201 to 1,700 sq. ft. 395.00 554.00
Resid., 1,701 to 2,200 sq. ft. 410.00 563.00
Resid., over 2,200 sq. ft. 440.00 627.00
Commercial buildings (per 1,000 sq. ft.) 339.00 475.00
Industrial buildings (per 1,000 sq. ft.) 80.00 111.00
In the case of duplexes and multi-family structures, the amount of the fee for each dwelling unit
shall be based upon the average size of the dwelling units contained within each such structure.
(b) All fees collected under this Section shall be deposited into the "fire protection capital
expansion fee account" established in § 8-97. This account shall be an interest bearing
account, and any interest income earned on the fees shall be credited to the account. Funds
withdrawn from the fire protection capital expansion fee account shall be used only for the
purposes specified in Subparagraph (a) of this Section and said expenditures shall be subject
to the provisions of this Article.
Section 15. That Section 7.5-31 of the Code of the City of Fort Collins is hereby
amended to read as follows:
Sec. 7.5-31. - General governmental capital expansion fee.
(a) There is hereby established a general governmental capital expansion fee which shall be
imposed pursuant to the provisions of this Article for the purpose of funding capital
improvements related to the provision of general governmental services, as such
improvements may be identified in the capital improvements plan for general governmental
services. Such fee shall be payable prior to the issuance of any building permit for a
residential, commercial or industrial structure. The amount of such fee shall be determined
as follows:
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Current
As of
October 1, 2017
Resid., up to 700 sq. ft. $330.00 $431.00
Resid., 701 to 1,200 sq. ft. 423.00 581.00
Resid., 1,201 to 1,700 sq. ft. 465.00 634.00
Resid., 1,701 to 2,200 sq. ft. 487.00 644.00
Resid., over 2,200 sq. ft. 523.00 716.00
Commercial buildings (per 1,000 sq. ft.) 803.00 1,088.00
Industrial buildings (per 1,000 sq. ft.) 188.00 257.00
In the case of duplexes and multi-family structures, the amount of the fee for each dwelling unit
shall be based upon the average size of the dwelling units contained within each such structure.
(b) All fees collected under this Section shall be deposited into the "general governmental
capital expansion fee account." established in § 8-93. This account shall be an interest
bearing account, and any interest income earned on the fees shall be credited to the account.
Funds withdrawn from the general governmental capital expansion fee account shall be used
only for the purposes specified in subparagraph (a) of this Section and said expenditures
shall be subject to the provisions of this Article.
Section 16. That Section 7.5-32 of the Code of the City of Fort Collins is hereby
amended to read as follows:
Sec. 7.5-32. - Transportation expansion fee.
There is hereby established a transportation expansion fee which shall be imposed pursuant to
the provisions of this Article for the purpose of funding transportation improvements related to
the provision of transportation services. Such fees shall be payable prior to the issuance of any
building permit for a residential, commercial or industrial structure. These fees shall be deposited
in the “transportation improvements fund” established in § 8-87. The amount of such fee shall
be determined as follows:
TRANSPORTATION EXPANSION FEE SCHEDULE
Current
As of
October 1, 2017
Resid., up to 700 sq. ft. $1,905.00 $1,827.00
Resid., 701 to 1,200 sq. ft. 2,143.00 3,392.00
Resid., 1,201 to 1,700 sq. ft. 3,112.00 4,404.00
Resid., 1,701 to 2,200 sq. ft. 3,112.00 5,150.00
Resid., over 2,2001 sq. ft. 3,112.00 5,520.00
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Commercial 11,930.00 6,721.00
Office and Other Services 7,760.00 4,951.00
Industrial/Warehouse 1,130.00 1,598.00
Section 17. That Section 7.5-71 of the Code of the City of Fort Collins is hereby
amended to read as follows:
Sec. 7.5-71. - Neighborhood parkland capital expansion fee.
(a) Payment of a neighborhood parkland capital expansion fee in accordance with this Section
shall be required as a condition of approval of all residential development for which a
building permit is required, as these terms are defined in § 7.5-17. The fees due for such
development shall be payable by the feepayer to the Building Official prior to or at the time
of issuance of the first building permit for the property to be developed, unless an agreement
has been executed by the City which provides for a different time of payment. All such
payments shall be deposited in the “neighborhood parkland capital expansion fee fund”
established in § 8-80. Only one (1) fee shall be charged for any dwelling unit. No additional
fee for acquisition and development of neighborhood parks shall be charged for the same
dwelling unit. If the building permit for which a fee has been paid has expired, and an
application for a new building permit is thereafter filed, any amount previously paid for a
neighborhood parkland capital expansion fee and not refunded by the City shall be credited
against any additional amount due under the provisions of this Article at the time of
application for the new building permit.
(b) The amount of the fee established in this Section shall be determined for each dwelling unit
as follows:
Current
As of
October 1, 2017
Resid., up to 700 sq. ft. $1,300.00 $1,343.00
Resid., 701 to 1,200 sq. ft. $1,667.00 1,797.00
Resid., 1,201 to 1,700 sq. ft. $1,842.00 1,962.00
Resid., 1,701 to 2,200 sq. ft. $1,919.00 1,983.00
Resid., over 2,200 sq. ft. $2,056.00 2,210.00
. . .
(e) The methodologies used to set the neighborhood parkland capital expansion fees shall be
reviewed and compared to the City's actual infrastructure costs at least once every five (5)
years, and adjustments made in accordance with such review and with the provisions of §
7.5-16.
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Section 18. That Section 7.5-72 of the Code of the City of Fort Collins is hereby
amended to read as follows:
Sec. 7.5-72. - Dedication of land in lieu of fee.
In lieu of the payment of the neighborhood parkland capital expansion fee under § 7.5-71, an
owner of lands may negotiate with the City for the dedication of lands to be used for
neighborhood park purposes. If a satisfactory agreement is reached for the dedication of such
lands, the price established for such lands may be credited against the neighborhood parkland
capital expansion fee owed under § 7.5-71 and the agreement reached between the parties shall
be set forth in writing and kept on file in the office of the City Clerk. Similarly, a credit against
the neighborhood parkland capital expansion fee under § 7.5-71 may be given on account of the
development of lands dedicated for neighborhood park purposes in such amount as may be
negotiated for and agreed upon between the City and any developer. Nothing contained in this
Section shall be construed to cancel or annul any agreement heretofore entered into by the City
concerning the dedication of parkland and credits on fees of the type established by this Article,
and all such agreements shall continue in full force and effect, and any credits remaining under
such agreement shall apply toward the fee assessed by this Article.
Section 19. That Section 8-80 of the Code of the City of Fort Collins is hereby
amended to read as follows:
Sec. 8-80. - Neighborhood parkland capital expansion fee fund.
There is hereby created a fund to account for the acquisition and development of neighborhood
parks known as the neighborhood parkland capital expansion fee fund. Revenues deposited into
the fund shall include the neighborhood parkland capital expansion fee collected pursuant to §
7.5-71. Expenditures from this fund shall be made for approved purposes for the acquisition,
planning, design, surveying, permitting, engineering, construction and other capital costs for new
neighborhood parks as provided in § 7.5-71, including purchases of new park site equipment and
plantings.
Section 20. That Section 8-87 of the Code of the City of Fort Collins is hereby
amended to read as follows:
Sec. 8-87. - Transportation improvements fund.
There is hereby created a fund to account for construction of transportation improvements, as
defined in § 7.5-17, to be known as the transportation improvements fund. Revenues deposited
into this fund shall include all transportation expansion fees collected pursuant to Chapter 7.5
and all monies collected pursuant to Division 2 of Article III of Code Chapter 24. Expenditures
shall be made as specified in Chapter 7.5 and Division 2 of Article III of Code Chapter 24.
Section 21. That Section 8-92 of the Code of the City of Fort Collins is hereby
amended to read as follows:
Sec. 8-92. - Capital expansion fee fund.
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There is hereby created a fund to account for the acquisition, construction and development of
capital improvements as defined in § 7.5-17. Revenues shall include all capital expansion fees
collected pursuant to Chapter 7.5, but shall not include the neighborhood parkland capital
expansion fee collected and deposited pursuant to § 7.5-71 and § 8-80 or the transportation
expansion fee collected and deposited pursuant to § 7.5-32 and § 8-87. Expenditures from this
fund shall be made solely for the applicable purposes described in Chapter 7.5.
Section 22. That Section 8-93 of the Code of the City of Fort Collins is hereby
amended to read as follows:
Sec. 8-93. - General governmental capital expansion fee account.
There is hereby created an account within the capital expansion fee fund to account for the
acquisition, construction and development of capital improvements related to the provision of
general governmental services, as described in the capital improvements plan for general
governmental services. Revenues shall include all fees collected pursuant to § 7.5-3.
Expenditures from this account shall be made solely for the purposes described in § 7.5-31(b)
and according to all other applicable provisions of Chapter 7.5.
Section 23. That Section 8-95 of the Code of the City of Fort Collins is hereby
amended to read as follows:
Sec. 8-95. - Community parkland capital expansion fee account.
There is hereby created an account within the capital expansion fee fund to account for the
acquisition, construction and development of capital improvements related to the provision of
community parklands, as described in the capital improvements plan for community parkland.
Revenues shall include all fees collected pursuant to § 7.5-28. Expenditures from this account
shall be made solely for the purposes described in § 7.5-28(b) and according to all other
applicable provisions of Chapter 7.5.
Section 24. That Section 8-96 of the Code of the City of Fort Collins is hereby
amended to read as follows:
Sec. 8-96. - Police capital expansion fee account.
There is hereby created an account within the capital expansion fee fund to account for the
acquisition, construction and development of capital improvements related to the provision of
police services, as described in the capital improvements plan for police services. Revenues shall
include all fees collected pursuant to § 7.5-29. Expenditures from this account shall be made
solely for the purposes described in § 7.5-29(b) and according to all other applicable provisions
of Chapter 7.5.
Section 25. That Section 8-97 of the Code of the City of Fort Collins is hereby
amended to read as follows:
Sec. 8-97. - Fire protection capital expansion fee account.
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There is hereby created an account within the capital expansion fee fund to account for the
acquisition, construction and development of capital improvements related to the provision of
fire protection services to City residents, as described in the capital improvements plan for fire
protection. Revenues shall include all fees collected pursuant to § 7.5-30. Expenditures from this
account shall be made solely for the purposes described in § 7.5-30(b) and according to all other
applicable provisions of Chapter 7.5.
Section 26. That Section 24-111 of the Code of the City of Fort Collins is hereby
amended to read as follows:
Sec. 24-111. Definitions
. . .
Exemption shall mean the granting of a partial or complete waiver of the transportation
expansion fee not to exceed fifty thousand dollars ($50,000.).
. . .
Transportation expansion fee shall mean the fee established in § 7.5-32.
Transportation fund shall mean the transportation improvement fund established in § 8-87.
Transportation improvements shall mean those capital improvements needed to construct arterial
or collector streets in the City as shown on the City’s adopted Master Street Plan, as amended,
shall include, without limitation, the following capital improvements when described in said
Master Street Plan or as described in the City’s adopted Bicycle Master Plan and Pedestrian
Master Plan, as these plans may be hereafter amended: right-of-way acquisition; vehicle and
bicycle lanes; curbs, gutters and other drainage structures; pedestrian ways; traffic control
devices and signals; medians and median landscaping; and transit facilities, including, without
limitation, transit stops and rolling stock, to the extent that such transit facilities are reasonably
necessary to expand the City's transit system so as to provide transit services to feepayers, as this
term is defined in § 7.5-17. However, transportation improvements shall not include the local
street portion and related capital improvements required for a developed parcel under this Code
and the Land Use Code.
Section 27. That Section 24-112 of the Code of the City of Fort Collins is hereby
amended to read as follows:
Sec. 24-112. - Transportation improvements reimbursement program.
(a) The transportation expansion fee revenue collected pursuant to §§ 7.5-19 and 7.5-32 and
deposited in the transportation fund shall be utilized to pay certain costs associated with and
necessary for the following transportation improvements: (1) increasing the width of streets
and sidewalks from local access status to arterial or collector status; (2) acquiring the
necessary right-of-way to accommodate the expansion of such streets and sidewalks; (3)
providing traffic signalization when required because of collector or arterial status; and (4)
expanding the City's transit system. Payments for such purposes may be made directly by
the City or in the form of reimbursements to the developers of real property in the City
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according to the provisions of this Division. Those categories of cost which will be eligible
for reimbursement from the transportation fund shall be determined by the City Engineer,
who shall maintain an itemization of the same in the form of administrative guidelines. The
City shall not participate in the cost of these or any other transportation improvements
required solely for the special use and benefit of the adjacent development, including,
without limitation, any acceleration or deceleration lanes, double left-turn lanes, or traffic-
control signals that are required by the transportation impact study for the development or
by the Traffic Engineer. Notwithstanding the foregoing, monies from the transportation
funds may be utilized to pay for all traffic-control signals associated with arterial-arterial
intersections and for one (1) such signal per collector-arterial intersection per mile. Monies
expended from the transportation fund shall not be used to pay for the cost of increasing the
depth of the local access portion of any street required to be constructed to arterial or
collector standards.
(b) The City Council shall, by resolution, adopt criteria to evaluate the community benefit of
streets in a development project to determine whether transportation improvements are
needed. If the City determines that the construction of transportation improvements do not
convey a measurable community benefit according to such criteria, then no monies
expended by the developer for such transportation improvements shall be eligible for
reimbursement by the City, and the street construction requirements for the development
shall be limited to those reasonably necessary to offset the traffic impacts of the
development. All collector and arterial streets, if required, shall be constructed to such
specifications as shall be necessary in the judgment of the City Engineer based on traffic
safety considerations, and taking into account the transportation impact of the development
upon such arterial or collector street. No such arterial street shall be constructed to a width
of less than thirty-six (36) feet.
(c) The City shall have no obligation to make reimbursement payments for transportation
improvements unless funds for such payments shall first have been budgeted and
appropriated from the transportation fund by the City Council; provided, however, that, to
the extent that funds are not available for such reimbursement, the City shall not require
construction, at the developer's expense, of any oversized portion of streets not reasonably
necessary to offset the traffic impacts of the subject development, unless otherwise agreed
upon by the City and the developer. The City shall have no obligation to make payment for
transportation improvements unless a written request for such payment in form acceptable to
the City and providing reasonable detail and proof of the expenses incurred shall have been
submitted to the City within ninety (90) days of written City acceptance of such completed
improvements.
(d) In order to limit the reimbursement payments under this Section to the amount budgeted and
appropriated, the City may make the following payments from the transportation fund
subject to the limitations as contained in Subsection (c) above:
(1) Upon acceptance and approval by the City of a payment request for transportation
funds, the City may pay a percentage of the amount requested. The percent of initial
payment shall be determined by the City Engineer prior to the start of the applicable
budget year.
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(2) At the close of the submittal period for the applicable budget year, the City will
proportionally reimburse any remaining revenues from that budget year to development
projects that had received a percentage reimbursement. Such proportionate
reimbursement shall be based upon the following ratio:
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Total revenues budgeted and appropriated =
Total of requested payments for transportation improvements
Proportionate reimbursement of
each requested payment
Section 28. That Section 24-113 of the Code of the City of Fort Collins is hereby
amended to read as follows:
Sec. 24-113. - Fee waiver, appeals.
(a) Exceptional hardship . The City Engineer, upon application of any interested party, may
waive or otherwise adjust any of the fees established in Division 1 of Article II in Code
Chapter 7.5, in order to prevent manifest injustice. No such waiver shall be granted unless,
by reason of extraordinary and exceptional situations or conditions of the property which is
the subject of the fee, the strict application of this Division would result in peculiar and
exceptional hardship upon the owner of such property; provided, however, that such relief
may be granted without substantially impairing the intent and purposes of this Division. No
such hardship shall be founded upon ability or inability to pay the fee.
. . .
Section 29. That Section 3.3.2(G) of the Land Use Code is hereby amended to read as
follows:
(G) City Participation in Certain Street Improvements.
(1) If a street within or adjacent to the development is improved as an arterial or
collector street rather than as a local street, the developer making such improvements
shall be reimbursed in accordance with the provisions of Section 24-112 of the City
Code.
(2) If an off-site street is improved to a width in excess of thirty-six (36) feet, and
provided that such excess width is not required because of the traffic impacts of the
development, the City Engineer shall compute the extra expense caused by such street
being improved to such excess width. Such extra expense shall be paid by the City out of
the Transportation Improvements Fund established in § 8-87. The City's obligations to
participate in such costs shall be limited to those funds budgeted and appropriated for the
payment requested. The participation of the City shall be limited to the costs of design,
construction and right-of-way acquisition as limited pursuant to Section 24-112 of the
City Code and costs of curbs, gutters or sidewalks exceeding local standards.
. . .
Section 30. That the City Manager is hereby directed to form a working-group of City
staff and community stakeholders to review the Studies, to consider any future changes to the
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City’s Capital Expansion Fees based on the Studies, and to present the recommendations of that
working-group to the Council with any such proposed changes. The Council also hereby
appoints Councilmember ______________ to act as liaison for communications between the
City Manager and his working-group and the Council.
Introduced, considered favorably on first reading, and ordered published this 16th day of
May, A.D. 2017, and to be presented for final passage on the 6th day of June, A.D. 2017.
__________________________________
Mayor
ATTEST:
_______________________________
City Clerk
Passed and adopted on final reading on the 6th day of June, A.D. 2017.
__________________________________
Mayor
ATTEST:
_______________________________
City Clerk
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ORDINANCE NO. 068, 2017
OF THE COUNCIL OF THE CITY OF FORT COLLINS
AMENDING CHAPTER 26 OF THE CODE OF THE CITY OF FORT
COLLINS REGARDING CALCULATION AND COLLECTION OF
DEVELOPMENT FEES IMPOSED FOR THE CONSTRUCTION
OF NEW OR MODIFIED ELECTRIC SERVICE CONNECTIONS
WHEREAS, the City Council is empowered and directed by Article XII, Section 6, of the
City Charter to fix, establish, maintain and provide for the collection of such rates, fees or
charges for utility services furnished by the City as will produce revenues sufficient to pay the
costs, expenses and other obligations of the electric utility, as set forth therein; and
WHEREAS, pursuant to City Code Sections 26-473 through 26-475, the City imposes
development fees for new or modified electric service connections, including an Electric
Capacity Fee and a Building Site Charge; and
WHEREAS, the ECF is a one-time charge designed to recover the initial cost of adding
new development to the electric system, and the Building Site Charge (BSC) is designed to
recover actual time and materials costs associated with building on site electric facilities at the
specific development; and
WHEREAS, the ECF and BSC together represent the total electric plant investment fee
(PIF) for new development; and
WHEREAS, during 2016, Electric Utility staff engaged NewGen Strategies to assist in
evaluating the calculation and methodology used in setting the ECF and BSC in light of the
Utility’s costs, the nature of development occurring in the City, and regional municipal utility
practice; and
WHEREAS, staff has determined the current methodology assumes greenfield
development, looking to square footage, the linear footage that abuts the public right of way, and
demand (kilowatt or kW) required to serve the developed site; and
WHEREAS, as the City experiences more redevelopment, mixed use developments and
higher density developments, this method fails to appropriately assign capital costs to the new
load required to serve developed sites; and
WHEREAS, staff recommends updating the cost allocation methodology used to
calculate the ECF and BSC to assign costs based on actual system value, which is the “buy-in”
approach used to calculate new or modified service connection fees for water and wastewater
services, more accurately reflect the cost of redevelopment in the community, and simplifies
administration of the ECF and BSC; and
WHEREAS, based on the foregoing, it is the desire of the City Council to amend Chapter
26 of the City Code to update the methodology for calculating and applying the Electric Capacity
Fee and a Building Site Charge for new or modified electric service connections.
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NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF
FORT COLLINS as follows:
Section 1. That the City Council hereby makes and adopts the determinations and
findings contained in the recitals set forth above.
Section 2. That Section 26-474(b) 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.
. . .
(b) The ECF shall be the total of the, dwelling unit charge and systems modification
charge, to be determined as follows:
(1) The dwelling unit charge shall be as follows:
a. For a single-family panel size with one hundred fifty (150) amp service (nonelectric
heat), per dwelling unit
$1,537
b. For a single-family panel size with two hundred (200) amp service $1,879
c. For a single-family with electric heat, per dwelling unit $2,508
d. For a multi-family panel size with two hundred (200) amp service or with one
hundred fifty (150) amp service (non-electric heat), per dwelling unit
$1,350
e. 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
$2,066
(2) 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.
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. . .
Section 3. That Section 26-474(d) 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.
. . .
(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 (d), and shall
be paid as specified herein.
. . .
(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 for single-family
and duplex residences 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
4/0 service 1,143.00 7.05/Foot
4/0 Mobile Home Service 932.00 N/A
. . .
(4) Any single-phase residential service over two hundred (200) amps shall be
considered a non-residential service.
Section 4. That Section 26-475(b) 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.
. . .
(b) The ECF shall be the total of the kVA service charge and systems modification
charge, to be determined as follows:
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(1) The kVA service charge shall be determined as follows.
a. For customer electric loads served by the utility, the kVA service
charge shall be calculated as follows:
ECF shall be calculated as follows:
secondary metered services $/kW = 320.31 + 21 x ln(kW)
primary metered services $/kW = 212.78 + 7.89 x ln(kW),
Where ln is the natural logarithm
kW is calculated as follows:
three phase services kW = A x V x SQRT(3) x PF x 0.3
single phase services kW = A x V x PF x 0.3
Where A is the requested amperage. V is requested line to line
voltage. PF is the power factor, which is assumed to be 0.9.
(2) 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.
. . .
Section 5. That Section 26-475(d) 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.
…
(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
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:
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(1) The primary circuit charge for service from the utility source to the
transformer shall be as follows:
a. For single-phase service, per foot of primary circuit 9.12
b. For three-phase service, per foot of primary circuit 16.58
(2) The transformer installation charge shall be as follows:
a. For single-phase service, per transformer 1,153.19
b. For three-phase service, per transformer 2,458.14
…
Section 6. That the amendments to Chapter 26 of the City Code contained herein
shall go into effect for all new or modified electric service connections on October 1, 2017.
Introduced, considered favorably on first reading, and ordered published this 16th day of
May, A.D. 2017, and to be presented for final passage on the 6th day of June, A.D. 2017.
__________________________________
Mayor
ATTEST:
_______________________________
City Clerk
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Passed and adopted on final reading on the 6th day of June, A.D. 2017.
__________________________________
Mayor
ATTEST:
_______________________________
City Clerk
AffordableHousingBoard X XX XX X
BoardofRealtors X X XX X X X X X
EconomicAdvisoryCommission X X
DowntownDevelopmentAuthority X XX X X X X
BuildingReviewBoard X
ParksandRecreationBoard X XXX X
NorthFortCollinsBusinessAssociation X X XX X X
HousingCatalyst X XX X
HumanRelationsBoard X XX X X
ATTACHMENT 3