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Home My WebLink AboutCOUNCIL - AGENDA ITEM - 12/18/2018 - ITEMS RELATING TO VARIOUS AMENDMENTS TO CITY CODEAgenda Item 9 Item # 9 Page 1 AGENDA ITEM SUMMARY December 18, 2018 City Council STAFF Kevin Gertig, Utilities Executive Director Judy Schmidt, Legal SUBJECT Items Relating to Various Amendments to City Code Chapter 26 Pertaining to Utility Services. EXECUTIVE SUMMARY A. Second Reading of Ordinance No. 160, 2018, Adopting the Cross-Connection Control Manual Containing Supplemental Rules and Regulations Necessary to Implement the Cross-Connection Control Program Pursuant to Section 26-189 of the Code of the City of Fort Collins and Amending Said Section to Authorize the Utilities Executive Director to Make Technical Revisions to Such Rules and Regulations. B. Second Reading of Ordinance No. 161, 2018, Amending Chapter 26 of the Code of The City of Fort Collins to Add Definitions for Data Managed by Utility Services. C. Second Reading of Ordinance No. 162, 2018, Amending Chapter 26 of the Code of the City of Fort Collins to Reference the Financial Officer’s Rules and Regulations for Interest Rates for the On-Bill Financing Program. D. Second Reading of Ordinance No. 163, 2018, Amending Chapter 26 of the Code of the City of Fort Collins to Clarify Utility Accounts, Billing and Collection Practices Regarding Net Metering. E. Second Reading of Ordinance No. 164, 2018, Amending Chapter 26 of the Code of the City of Fort Collins to Clarify Access and Metering Conditions of Utility Services Related to Transition from Manually-Read Meters to Advanced Metering Infrastructure (AMI) Meters. F. Second Reading of Ordinance No. 165, 2018, Amending Sections 26-120 and 26-283 of the Code of the City of Fort Collins to Authorize the Utilities Executive Director to Waive Water Plant Investment Fees and Sewer Plant Investment Fees in Limited Circumstances This Ordinance, unanimously adopted on First Reading on December 4, 2018, adopts a variety of revisions, clarifications and additions to update portions of City Code Chapter 26 pertaining to Utility Services. STAFF RECOMMENDATION Staff recommends adoption of the Ordinances on Second Reading. 9 Packet Pg. 143 Agenda Item 9 Item # 9 Page 2 ATTACHMENTS 1. First Reading Agenda Item Summary, December 4, 2018 (w/o attachments) (PDF) 2. Ordinance No. 160, 2018 (PDF) 3. Ordinance No. 161, 2018 (PDF) 4. Ordinance No. 162, 2018 (PDF) 5. Ordinance No. 163, 2018 (PDF) 6. Ordinance No. 164, 2018 (PDF) 7. Ordinance No. 165, 2018 (PDF) 9 Packet Pg. 144 Agenda Item 14 Item # 14 Page 1 AGENDA ITEM SUMMARY December 4, 2018 City Council STAFF Kevin Gertig, Utilities Executive Director Judy Schmidt, Legal SUBJECT Items Relating to Various Amendments to City Code Chapter 26 Pertaining to Utility Services. EXECUTIVE SUMMARY A. First Reading of Ordinance No. 160, 2018, Adopting the Cross-Connection Control Manual Containing Supplemental Rules and Regulations Necessary to Implement the Cross-Connection Control Program Pursuant to Section 26-189 of the Code of the City of Fort Collins and Amending Said Section to Authorize the Utilities Executive Director to Make Technical Revisions to Such Rules and Regulations. B. First Reading of Ordinance No. 161, 2018, Amending Chapter 26 of the Code of The City of Fort Collins to Add Definitions for Data Managed by Utility Services. C. First Reading of Ordinance No. 162, 2018, Amending Chapter 26 of the Code of the City of Fort Collins to Reference the Financial Officer’s Rules and Regulations for Interest Rates for the On-Bill Financing Program. D. First Reading of Ordinance No. 163, 2018, Amending Chapter 26 of the Code of the City of Fort Collins to Clarify Utility Accounts, Billing and Collection Practices Regarding Net Metering. E. First Reading of Ordinance No. 164, 2018, Amending Chapter 26 of the Code of the City of Fort Collins to Clarify Access and Metering Conditions of Utility Services Related to Transition from Manually-Read Meters to Advanced Metering Infrastructure (AMI) Meters. F. First Reading of Ordinance No. 165, 2018, Amending Sections 26-120 and 26-283 of the Code of the City of Fort Collins to Authorize the Utilities Executive Director to Waive Water Plant Investment Fees and Sewer Plant Investment Fees in Limited Circumstances The purpose of this item is to adopt a variety of revisions, clarifications and additions to update portions of City Code Chapter 26 pertaining to Utility Services. STAFF RECOMMENDATION Staff recommends adoption of the Ordinances on First Reading. BACKGROUND / DISCUSSION Item A: Cross Connection Control Manual The purpose of this item is to adopt an updated version of the Cross-Connection Control Manual that contains supplemental rules and regulations not explicitly written in Section 26-189 of the Code of City of Fort Collins. The Cross-Connection Control Manual was last updated in 2002 and this Ordinance would also amend Section ATTACHMENT 1 COPYY taining aining to Utility U Services. Servi PY g the Cross Cross--Connection Control Manual Manua C to Implement the Cross -Connection Contr Cont City tySectio of Fort Collins and Amending Said Secti ical calRegulation Revisions to Such Rules Ru and 8, Amending dingThe Chapter 26 of o the Code of Utility Services. 162, 162,Cod 2018, Amending Chapter 26 of the r’s ’s Rules and Regulations for Interest R Rates fo ce No. 163, 2018, Amending Chapter 26 of s, Billing g and Collection Practices Regarding Reg Ordinance No. o. 164,164 2018, Amending gChapte Cha and Metering Conditions of Utility Services R d Metering Infrastructure (AMI) Meters. eading dingN of Ordinance o. 165, 65,Amend 2018, Ame ort Collins ollinsExecutive to Authorize the Utilitie Utilities nt Investment estmentCircumstanc Fees in Limited Circ of this item is to adopt a avariety var 26 pertaining to Utility Serv Ser NNDDAATTIIOONN C on of t Agenda Item 14 Item # 14 Page 2 26-189 to authorize the Utilities Executive Director to make technical revisions, similar to technical revisions the Utilities Executive Director is authorized to make under Section 26-29 to development construction standards. The purpose of a Backflow and Cross Connection Control program is to reduce or eliminate the risk of contamination or pollution of the public water system. A cross-connection is an actual or potential connection between any part of a potable water system and an environment that would allow substances to enter that system. This includes gases, liquids, or solids such as chemicals, water products, steam, water from other sources and any matter that may change the color or taste and/or odor of the water. The Fort Collins Cross Connection Control Manual was last updated in 2002. Since that time several changes have happened in the industry that staff feels are important to formally recognize. A general summary of the proposed changes are as follows: 1. The 2017 update identifies the Foundation for Cross-Connection Control and Hydraulic Research of the University of Southern California (USC) as the approval agency for testable devices and the American Society of Sanitation Engineers (ASSE) as the approval agency for non-testable devices. This change follows national best practices. 2. An Approved Water Supply means that it is a potable water supply operating in accordance with the Colorado Primary Drinking Water Regulations from the Colorado Department of Public Health and Environment (CDPHE). 3. Certification of Testers must be approved by ASSE or the American Backflow Prevention Association (ABPA). This also follows national best practices. 4. Changes the references in building codes from the Universal Plumbing Code (UPC) to the International Plumbing Code (IPC) to conform to City of Fort Collins adopted references. 5. Added ‘double check valve assemblies’ to the list of approved devices. 6. Combined definitions and references to Contamination, Health Hazard, Pollution, and Pollution Hazard as all are impacts to the system that are being addressed in similar manners. This was included to help simplify the manual. Staff recommends that the updated Cross-Connection Manual and the changes to section 26-189 of the Code of the City of Fort Collins to authorize the Utilities Executive Director to make technical revisions go into effect on January 1, 2019. Item B: Add Definitions for Data Managed by Utility Services The purpose of this item is to add definition of the word aggregation to the privacy language related to utility data. Adding this definition maintains privacy of customer data while still allowing for data to be used beneficially for analysis by City Staff or other interested parties. Currently, Code references aggregated statistical form in 26-26 (3) for data sharing and provides that utility account information may be disclosed to the public in an aggregated or statistical form so classified as to prevent the identification, location or habits of individual customers, but does not provide a specific standard. The added definition both protects customer’s data and gives staff adequate direction to determine how data may be shared. The proposed definition to be added to Code Section 26-1 is as follows: Aggregated data shall mean reports of utility user data at a meter-level for single family accounts or building-level for multi-family and commercial accounts, alone or combined with other anonymized data resulting from statistical processing, including average consumption and consumption per square foot. In compiling such information (i) the time interval for data reported shall be no fewer than monthly; and (ii) each report shall reflect information from no less than four utility accounts. Anonymized data shall mean utility user data from which account information has been removed so no individual user’s name, contact information, financial data, or habits can be determined from the aggregated results. COPY ce e that th e. on n Control and Hydr Hydraulic Researc ency ncyAm for testable device devices and the agency fornon for non--testable testablecha dev devices. This ble bleoperating water supply sup in accord accordance om the Colorado Department of Public H y ASSE or the America American Backflow Prevent ctices.ces. es from the Universal Plumbing Plum Code (UPC ty of Fort Collins llins adopted re references. ies’ to the list of approved d devices. Agenda Item 14 Item # 14 Page 3 Item C: Interest Rates for the On-Bill Financing Program The purpose of this item is to remove conflicting language that defines an interest rate for on-bill financing loans at a specific value based on a specific date of issuance. Currently, this language restricts the allowable interest rate to a single value for all loans. The proposed changes define a permitted interest rate range (2.5% - 10% per annum), with specific rates to be set annually, in the Financial Officer’s rules and regulations. Item D: Clarify Utility Accounts, Billing and Collection Practices Regarding Net Metering The purpose of this item is to remove language related to parallel generation that no longer applies. In various annual rate updates, City Council adopted adjustments to “net metering”, “net metering-community solar projects”, and “renewable resources” portions of the Code setting electric rates, rendering obsolete the references to “parallel generation” in those sections. Staff has determined the “parallel generation” references have been effectively replaced by more specific provisions of the electric rate subsections of the Code and removal of the “parallel generation” will clarify interpretation and application of the rates and bill-credits associated with net metering, community solar projects, and renewable resources. Item E: Clarify Access and Metering Conditions of Utility Services Regarding Transition from Manual- Read Electric and Water Meters to AMI Meters The purpose of this item is to clarify service conditions, remedies for interference with Utility personnel in their performance of official duties, and manually-read metering service fees that are required to better inform customers and align with current utility practices. This Ordinance addresses issues with existing and emergent utility processes caused by manual- read water and electric meters. Currently, every month Credit/Collections personnel manually read and collect the water and electric consumption for customers who select and pay for the manual-read option. Time-of-Day (TOD) electric rates have greatly increased the amount of information needed to correctly bill residential customers. Currently, manual-read electric accounts need one or two readings (depending on net metering status) that are visually collected and hand-entered into a mobile device; TOD will require the connection of a tablet to the electric meter to download a much higher resolution of metering data to accommodate TOD billing. This will greatly increase the amount of time City personnel must be on the customer’s property and at the meter location, which will exacerbate the existing issues including: 1. manual-read customers who have their service terminated for failure to pay will require manual removal of the electric meter; and 2. more frequent recurrence of conflict regarding such access. Each of these issues cause delays in bill creation and/or duplication of truck rolls to these locations. Code language is being added to address the above concerns; when customers who are manual-read continue to cause the issues stated above, the new code language provides Utilities with a mechanism to transfer these customers to the standard wirelessly communicating meter reading system in order to obtain the metering information needed for billing. A meter exchange is required to make this transition and the fee associated with that exchange is also included in this update. There is also language added to ensure utility personnel are granted access to private property when accessing utility owned facilities including electric and water meters, water communications modules, and water meter touchpads. Item F: Amending Code Sections 26-120 and 26-283 to Authorize Waiver of Water Plant Investment Fees (WPIF) and Sewer Plant Investment Fees (SPIF) in Limited Circumstances The purpose of this item is to authorize waivers for WPIFs and SPIFs in connection with a change in use from residential to non-residential where the customer notified the utilities of such change, but it is discovered more than 2 years after the change that the required WPIFs and SPIFs were not charged by the utility and are likely the result of error or omission of the utility for which the applicant is not culpable. The Utilities Executive Director COPY no nolong lo “net tmeterin me ic rates, es, renderin r the “parallel allelgeneratio g ctric rate subsections sect of the application of the rates and bi able resources. y Services ServicesMa Regarding Transitio Transition from s, s,pers remedies for interference with Utility pers metering service fees that are required t sting and emergent ergent utility processes p caused onth thr Credit/Collections personnel pers manually Agenda Item 14 Item # 14 Page 4 is authorized to grant such waivers so long as they do not adversely affect the capacity of the impacted utility to serve its customers. To date staff has identified a single instance under which a change of use from residential to commercial was completed without charging the additional incremental PIF that should have been assessed at the time the change of use was approved. Current Code does not clearly allow for the Utility Executive Director to exercise discretion on the subsequent collection of such unbilled PIFs. CITY FINANCIAL IMPACTS Most of the Code changes proposed above will have no direct financial impact to the City. Ordinance No. 164, 2018 (Item E) allows the Utility Executive Director to have some discretion to waive water plant investment fees and sewer plant investment fees under limited circumstances. It is not anticipated that these circumstances will occur often or result in significant lost revenue. BOARD / COMMISSION RECOMMENDATION Item A: Fort Collins Utilities Water Board voted unanimously, 9-0 on August 17, 2017, to recommend approval of the updated City of Fort Collins Cross-Connection Control Manual. (Attachment 1) Items B, C, D and E: The Fort Collins Energy Board voted 9-0 on November 8, 2018, to recommend approval of these proposed revisions to Code. (Attachment 2) PUBLIC OUTREACH Fort Collins Utilities has presented the changes to Water Board and the Fort Collins Energy Board as set forth above. Staff has not done any further public outreach as it was determined that the revisions were of a technical nature and would not adversely affect customers. ATTACHMENTS 1. Water Board Minutes August 7, 2018 (PDF) 2. Energy Board Minutes November 8, 2018 (Draft) (PDF) COPYY o the he Ci City . O waive water wate plant cipated that at these th circu Y , 99-0 on August A 17, 2017 , to recommend recom ap ol l Manual. (Attachment Att 1 ) voted voted9 9-0 on November vemb 8, 2018 , to recomm mm 22)) OP changes hangesCollins to Water Board and an the Fort public outreach as it was determined determ that the ect customers.cust O es August 7, 2018 20 (PDF) nutes November ber 8, 2018 (Draft) (PDF) PDF 9.1 Packet Pg. 148 Attachment: First Reading Agenda Item Summary, December 4, 2018 (w/o attachments) (7475 : SR 160 161 162 163 164 165 Utilities Chapter 26) -1- ORDINANCE NO. 160, 2018 OF THE COUNCIL OF THE CITY OF FORT COLLINS ADOPTING THE CROSS-CONNECTION CONTROL MANUAL CONTAINING SUPPLEMENTAL RULES AND REGULATIONS NECESSARY TO IMPLEMENT THE CROSS-CONNECTION CONTROL PROGRAM PURSUANT TO SECTION 26-189 OF THE CODE OF THE CITY OF FORT COLLINS AND AMENDING SAID SECTION TO AUTHORIZE THE UTILITIES EXECUTIVE DIRECTOR TO MAKE TECHNICAL REVISIONS TO SUCH RULES AND REGULATIONS WHEREAS, the City owns and operates a water utility that, among other things, provides treated water service to customers; and WHEREAS, the control of cross-connections within the treated water system is an important issue in order to protect the City’s treated water system from contamination; and WHEREAS, City Code Sections 26-186 through 26-189 concern cross-connection control, with City Code Section 26-189 stating that the City Council may, upon recommendation of the City Manager, adopt by ordinance such supplemental rules and regulations as may be necessary to implement and administer the cross-connection control program; and WHEREAS, the City previously adopted such supplemental rules and regulations in the form of a cross-connection control manual through Ordinance No. 131, 1994, as such rules and regulations were amended through Ordinance No. 047, 2001; and WHEREAS, the City Manager and City staff have developed an updated version of that manual, being the Cross-Connection Control Manual, attached hereto as Exhibit “A” (“Manual”), with the Manual containing such supplemental rules and regulations contemplated under City Code Section 26-189 and as otherwise authorized pursuant to City Code Section 26-52; and WHEREAS, the Manual and the rules and regulations contained therein are necessary to implement and administer the cross-connection control program and are intended to replace previous versions of the cross-connection control manual; and WHEREAS, the Manual and the rules and regulations contained therein are necessary in order to protect the City’s treated water system from contamination, thereby protecting the health, safety, and welfare of the citizens of Fort Collins and the customers of the City’s treated water system; and WHEREAS, there have historically been instances when minor additions, revisions, and corrections to the cross-connection control manual have been desirable and necessary to conform to good engineering and/or standards and practice (collectively, “technical revisions”), but that such technical revisions do not create good cause to require the amendment or re-adoption of such manual by ordinance, but could instead be better and more efficiently made administratively by the Utilities Executive Director; and 9.2 Packet Pg. 149 Attachment: Ordinance No. 160, 2018 (7475 : SR 160 161 162 163 164 165 Utilities Chapter 26) -2- WHEREAS, notwithstanding the best efforts of City staff, it can be reasonably anticipated that technical revisions may be required for the Manual, and that it would be beneficial to the City, the citizens of Fort Collins, and the customers of the City’s treated water system to include procedures in City Code Section 26-189 to allow for technical revisions to be made administratively by the Utilities Executive Director; and WHEREAS, analogous provisions related to similar technical revisions are included in City Code Section 26-29; and WHEREAS, the Water Board has recommended approval of the Manual; and WHEREAS, the City Manager and City staff have recommended to the City Council that the Manual and the following changes go into effect as of January 1, 2019, among other reasons, in order to provide adequate time for City staff and the public to prepare for the changes; and WHEREAS, the City Manager and City staff have recommended to the City Council that the Manual be adopted as set forth herein and that City Code Section 26-189 be amended as set forth below. 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. The Cross-Connection Control Manual, attached hereto as Exhibit “A”, is adopted as supplemental rules and regulations pursuant to City Code Sections 26-52 and 26-189. Section 3. All previous cross-connection control manuals and rules and regulations under City Code Section 26-189 shall be revoked and shall no longer be in effect after December 31, 2018. Section 4. That Section 26-189 of the Code of the City of Fort Collins is hereby amended by labeling the existing paragraph as Subsection (a) and adding a new Subsection (b) to read as follows: Sec. 26-189. - Prevention program. . . . (b) The Utilities Executive Director may adopt minor additions, revisions and corrections to the supplemental rules and regulations as may, in the judgment of the Utilities Executive Director, be necessary to better conform to good engineering and/or standards and practice. The Utilities Executive Director shall approve only those proposed technical revisions that: 9.2 Packet Pg. 150 Attachment: Ordinance No. 160, 2018 (7475 : SR 160 161 162 163 164 165 Utilities Chapter 26) -3- (1) are consistent with all existing policies relevant to the revisions, (2) do not result in any significant additional cost to persons affected by the revision, and (3) do not materially alter the standard or level of service to be accomplished through the specified infrastructure. Upon adoption of any technical revisions pursuant to the authority of this Subsection, the Utilities Executive Director shall provide to the City Clerk documentation of such technical revisions specifying the date upon which they shall become effective, and shall maintain said documentation on file in the permanent records of the City Clerk and Utility Services and available for public inspection. Section 5. That this Ordinance shall go into effect on January 1, 2019. Introduced, considered favorably on first reading, and ordered published this 4th day of December, A.D. 2018, and to be presented for final passage on the 18th day of December, A.D. 2018. __________________________________ Mayor ATTEST: _______________________________ City Clerk Passed and adopted on final reading on the 18th day of December, A.D. 2018. __________________________________ Mayor ATTEST: _______________________________ City Clerk 9.2 Packet Pg. 151 Attachment: Ordinance No. 160, 2018 (7475 : SR 160 161 162 163 164 165 Utilities Chapter 26) -1- ORDINANCE NO. 161, 2018 OF THE COUNCIL OF THE CITY OF FORT COLLINS AMENDING CHAPTER 26 OF THE CODE OF THE CITY OF FORT COLLINS TO ADD DEFINITIONS FOR DATA MANAGED BY UTILITY SERVICES WHEREAS, the Colorado Open Records Act, codified at Colorado Revised Statutes Sections 24-72-101 et. seq., establishes standards to protect public utility user information from parties other than parties in interest, and creates exceptions for utilities to provide such information in a form that prevents identification of users and as required to support criminal investigations; and WHEREAS, on December 20, 2005, the City Council adopted Ordinance No. 155, 2005 amending Chapter 26 of the City Code by adding Section 26-26 to define the scope of confidentiality afforded utility customer records under the Colorado Open Records Act and to clarify that the use of those records for City Code enforcement is appropriate and consistent with the intended protection of that information from general public access; and WHEREAS, Chapter 26 of the City Code regulates and governs the provision of utility services and sets forth definitions of terms used to describe and applicable to conditions for receipt of utility services; and WHEREAS, such provisions require updating and modification from time to time, for purposes of clarification and to ensure the Code remains a dynamic document capable of responding to issues identified by staff, customers, and citizens and changes in the law regarding the delivery of public utility services; and WHEREAS, Fort Collins Utility Customer Connections staff has identified definitions to be added to Chapter 26 of the City Code to clarify how user data is managed and to better inform customers and align with current utility practices; and WHEREAS, in light of the foregoing, the City Council has determined the amendment of Chapter 26 of the City Code is necessary and will be beneficial for the ratepayers of the City's utilities and for the efficient administration of Utility and Code enforcement functions. 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 26-1 of the City Code is hereby amended by addition of two new definitions to read as follows: Sec. 26-1. - Definitions. The following words, terms and phrases, when used in this Chapter, shall have the meanings ascribed to them in this Section: 9.3 Packet Pg. 152 Attachment: Ordinance No. 161, 2018 (7475 : SR 160 161 162 163 164 165 Utilities Chapter 26) -2- Aggregated data shall mean reports of utility user data at a meter-level for single family accounts or building-level for multi-family and commercial accounts, alone or combined with other anonymized data resulting from statistical processing, including average consumption and consumption per square foot. In compiling such information (i) the time interval for data reported shall be no less than monthly; and (ii) each report shall reflect information from no fewer than four utility accounts. Anonymized data shall mean utility user data from which account information has been removed so no individual user’s name, contact information, financial data, or habits can be determined from the aggregated results. ... Introduced, considered favorably on first reading, and ordered published this 4th day of December, A.D. 2018, and to be presented for final passage on the 18th day of December, A.D. 2018. __________________________________ Mayor ATTEST: _______________________________ City Clerk Passed and adopted on final reading on the 18th day of December, A.D. 2018. __________________________________ Mayor ATTEST: _______________________________ City Clerk 9.3 Packet Pg. 153 Attachment: Ordinance No. 161, 2018 (7475 : SR 160 161 162 163 164 165 Utilities Chapter 26) -1- ORDINANCE NO. 162, 2018 OF THE COUNCIL OF THE CITY OF FORT COLLINS AMENDING CHAPTER 26 OF THE CODE OF THE CITY OF FORT COLLINS TO REFERENCE THE FINANCIAL OFFICER’S RULES AND REGULATIONS FOR INTEREST RATES FOR THE ON-BILL FINANCING PROGRAM WHEREAS, under Ordinance No. 033, 2012, the City established a Home Efficiency Loan Program, also known as On-Bill Utility Financing (OBF), which enabled Fort Collins Utilities to offer financing and on-bill servicing of customer loans for energy efficiency, water efficiency and renewable energy upgrade projects; and WHEREAS, between 2013 through 2016, OBF provided low-cost financing for energy efficiency, solar photovoltaic, and water conservation improvements, in support of Utilities’ efficiency and conservation efforts, and policy goals from Plan Fort Collins, the Climate Action Plan, Energy Policy and Water Conservation Plan; and WHEREAS, on February 17, 2015, City Council adopted Ordinance No. 012, 2015, which expanded eligibility for OBF program participation to Utilities’ business customers, set the term for new loans at 20 years, and set a range of loan interest rates to be applied pursuant to procedures and standards adopted by the Financial Officer under Section 26-720 of the City Code; and WHEREAS, in 2016, the City transitioned the funding methodology for OBF to a third- party commercial model relying on an outside financing partner; and WHEREAS, the rate of OBF residential customer energy efficiency building upgrades under the third-party commercial loan model has lagged below levels required to achieve City energy and climate policy goals; and WHEREAS, in February 2018, the City was selected as a Champion City as part of the 2018 Bloomberg Philanthropies U.S. Mayors' Challenge competition; and WHEREAS, in conjunction with selection as a Champion City, Bloomberg Philanthropies awarded the City a $100,000 grant to develop a program to improve energy efficiency of low- to moderate-income rental households, which grant amount City Council appropriated under Ordinance No. 082, 2018; and WHEREAS, the Colorado Energy Office also awarded to the City a grant of $200,000 to provide capital for a loan program to improve energy efficiency and renewable energy for Fort Collins households; and WHEREAS, Chapter 26 of the City Code governs the provision of utility services and sets forth definitions of terms used to describe and applicable to conditions for receipt of utility services; and WHEREAS, such provisions require updating and modification from time to time, for purposes of clarification and to ensure the Code remains a dynamic document capable of responding to issues identified by staff, customers, and citizens and changes in the law regarding 9.4 Packet Pg. 154 Attachment: Ordinance No. 162, 2018 (7475 : SR 160 161 162 163 164 165 Utilities Chapter 26) -2- the delivery of public utility services; and WHEREAS, Utility Customer Connections staff has identified portions of Chapter 26 of the City Code regarding setting OBF loan interest rates within the range approved by City Council which can be more efficiently executed by allowing adjustments to be set by the Financial Officer pursuant to Section 26-720 of the Code; and WHEREAS, the Financial Officer has established rules and regulations for the administration of OBF with respect to the billing and collection of utility fees and charges, credit and lending standards, and rates and administrative practices pursuant to Section 26-720; of the Code; and WHEREAS, the City Council has determined it is desirable to maintain an appropriate and predictable range of interest rates for OBF loans, while providing flexibility within rate ranges approved by Council for administration of specific loans based on administrative procedures and standards adopted by the Financial Officer, pursuant to Section 26-720 of the Code; and WHEREAS, the City Council has determined, in exercising his or her authority to adopt administrative procedures and standards for OBF loans, the Financial Officer shall adjust OBF loan rates within the range set by Ordinance No. 012, 2015 and based on evaluation of the program’s blended cost of capital and conditions (e.g., grants and any third-party capital); administrative costs of loan implementation; the term of loan products; past realized program participation savings results; the local market’s commercial and residential lending rates; and to otherwise avoid using ratepayer funds to subsidize OBF loan interest rates; and WHEREAS, the City Council has further determined, in exercising his or her authority to adjust OBF loan rates, the Financial Officer shall present updated loan rates to the Council Finance Committee, or another committee designed by City Council, prior to such loan rates going into effect; and WHEREAS, the City Council has also determined it is desirable to enhance incentives and financing options for new OBF loans by applying grants from the Bloomberg Foundation and Colorado Energy Office and providing flexibility in the administration of OBF loans, which will benefit utility ratepayers by expanding access for efficiency upgrades at customer premises and furthering the conservation benefits available to ratepayers through the OBF program, as required by Article XII, Section 6 of the City Charter; and WHEREAS, in light of the foregoing, the City Council has determined the proposed amendments to Chapter 26 of the City Code are necessary and will be beneficial for the ratepayers of the City's utilities and for the efficient administration of the OBF program. 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. 9.4 Packet Pg. 155 Attachment: Ordinance No. 162, 2018 (7475 : SR 160 161 162 163 164 165 Utilities Chapter 26) -3- Section 2. That Section 26-129(f) of the Code of the City of Fort Collins is hereby amended to read as follows: Sec. 26-129. - Schedule D, miscellaneous fees and charges. The following fees and service charges shall be paid by water users, whether inside or outside the City limits: ... (f) The interest rate for water service-related loans shall be no less than two and five tenths (2.5) percent and no more than ten (10.0) percent, per annum, with the interest rate for new loans to be based on factors set forth in §26-720(b) and as provided in the administrative rules and regulations adopted by the Financial Officer pursuant to §26-720. ... Section 3. That Section 26-289 of the Code of the City of Fort Collins is hereby amended to read as follows: Sec. 26-289. - Miscellaneous fees and charges. The following is a schedule of miscellaneous fees and charges: Description Basis Amount ... (6) Interest for wastewater service- related loans: 2.5% - 10% per annum; to be set for new loans annually, with the rate for new loans to be based on factors set forth in §26- 720(b) and as provided in the administrative rules and regulations adopted by the Financial Officer pursuant to § 26-720. ... Section 4. That Section 26-464(q) of the Code of the City of Fort Collins is hereby amended to read as follows: 9.4 Packet Pg. 156 Attachment: Ordinance No. 162, 2018 (7475 : SR 160 161 162 163 164 165 Utilities Chapter 26) -4- Sec. 26-464. - Residential energy service, schedule R. ... (q) Loans. Services in the form of loans for electric service-related improvements, conservation measures or efficiency enhancements shall be documented on forms determined by the Utilities Executive Director and the Financial Officer. Any such loans shall be made consistent with the applicable program requirements, credit and risk standards and interest rate provisions as set forth in this Article and in the administrative rules and regulations adopted by the Financial Officer pursuant to §26-720. The interest rate for such loans shall be no less than two and five-tenths (2.5) percent and no more than ten (10.0) percent per annum, with the interest rate for new loans to be based on factors set forth in §26-720(b) and as provided in the administrative rules and regulations adopted by the Financial Officer. Obligations for repayment of any such loans are subject to the provisions of Article XII of this Chapter. Loan- related fees for electric service-related loans shall be set annually based on related program costs, in the administrative rules and regulations of the Financial Officer pursuant to §26-720. ... Section 5. That Section 26-465(s) of the Code of the City of Fort Collins is hereby amended to read as follows: Sec. 26-465. - Residential demand service, schedule RD. ... (s) Loans. Special services in the form of loans for electric service-related improvements, conservation measures or efficiency enhancements shall be documented on forms determined by the Utilities Executive Director and the Financial Officer. Any such loans shall be made consistent with the applicable program requirements, credit and risk standards and interest rate provisions as set forth in this Article and in the administrative rules and regulations adopted by the Financial Officer pursuant to §26-720. The interest rate for such loans shall be no less than two and five-tenths (2.5) percent and no more than ten (10.0) percent per annum, with the interest rate for new loans to be based on factors set forth in §26-720(b) and as provided in the administrative rules and regulations adopted by the Financial Officer. Obligations for repayment of any such loans are subject to the provisions of Article XII of this Chapter. Loan-related fees for electric service-related loans shall be set annually based on related program costs, in the administrative rules and regulations of the Financial Officer pursuant to §26-720. Section 6. That Section 26-466(s) of the Code of the City of Fort Collins is hereby amended to read as follows: Sec. 26-466. - General service, schedule GS. ... (s) Loans. Special services in the form of loans for electric service-related improvements, conservation measures or efficiency enhancements shall be documented on forms determined by the Utilities Executive Director and the Financial Officer. Any such loans shall be made consistent with the applicable program requirements, credit and risk standards and interest rate provisions as set forth in this Article and in the administrative rules and regulations adopted by the Financial Officer pursuant to §26-720. The interest rate for such loans shall be no less than two and five-tenths (2.5) percent and no more than ten (10.0) percent, per annum, 9.4 Packet Pg. 157 Attachment: Ordinance No. 162, 2018 (7475 : SR 160 161 162 163 164 165 Utilities Chapter 26) -5- with the interest rate for new loans to be based on factors set forth in §26-720(b) and as provided in the administrative rules and regulations adopted by the Financial Officer. Obligations for repayment of any such loans are subject to the provisions of Article XII of this Chapter. Loan-related fees for electric service-related loans shall be set annually based on related program costs, in the administrative rules and regulations of the Financial Officer pursuant to §26-720. Section 7. That Section 26-467(s) of the Code of the City of Fort Collins is hereby amended to read as follows: Sec. 26-467. - General service 25, schedule GS25. ... (s) Loans. Special services in the form of loans for electric service-related improvements, conservation measures or efficiency enhancements shall be documented on forms determined by the Utilities Executive Director and the Financial Officer. Any such loans shall be made consistent with the applicable program requirements, credit and risk standards and interest rate provisions as set forth in this Article and in the administrative rules and regulations adopted by the Financial Officer pursuant to §26-720. The interest rate for such loans shall be no less than two and five-tenths (2.5) percent and no more than ten (10.0) percent, per annum, with the interest rate for new loans to be based on factors set forth in §26-720(b) and as provided in the administrative rules and regulations adopted by the Financial Officer. Obligations for repayment of any such loans are subject to the provisions of Article XII of this Chapter. Loan-related fees for electric service-related loans shall be set annually based on related program costs, in the administrative rules and regulations of the Financial Officer pursuant to §26-720. Section 8. That Section 26-712(b) of the Code of the City of Fort Collins is hereby amended to read as follows: Sec. 26-712. - Utility bill and account charges authorized; procedures. ... (b) The following account and miscellaneous fees and charges shall apply to all City utility customers receiving service pursuant to the terms of Chapter 26, whether within or outside of the corporate limits of the City, except as otherwise expressly stated: Fees and Charges Amount ... Interest rate for utility service- related loans: 2.5% - 10% per annum; to be set annually for new loans, with the rate for new loans to be based on factors set forth in §26- 720(b) and as provided in the administrative rules 9.4 Packet Pg. 158 Attachment: Ordinance No. 162, 2018 (7475 : SR 160 161 162 163 164 165 Utilities Chapter 26) -6- and regulations adopted by the Financial Officer pursuant to § 26-720 ... Section 9. That Section 26-720 of the Code of the City of Fort Collins is hereby amended to read as follows: Sec. 26-720. - Administrative rules and regulations. (a) The Financial Officer shall formulate and promulgate rules and regulations for the administration of this Article, not inconsistent with the provisions of this Article with respect to the billing and collection of utility fees and charges, credit and lending standards and rates and administrative practices for utility loan programs, which shall include, but not be limited to, efficiency-related conditions on loans for renewable energy development; extension of utility loans of up to twenty (20) years in total term length, at the option of the borrower, not to exceed the useful life of the funded improvements; and other matters relating to the administration of customer accounts. Said rules and regulations may regulate without limitation, the forms and procedures for giving notice to customers; policies for adjusting billed amounts as necessary to correct errors or for administrative efficiency or to achieve equity; procedures for appeals; and procedures for the documentation of liens. Any rules or regulations promulgated by the Financial Officer hereunder shall be effective upon the Financial Officer's filing of the same with the City Clerk. (b) The Financial Officer shall periodically adjust the interest rate for utility service-related loans at no less than two and five-tenths (2.5) percent and no more than ten (10.0) percent per annum, based on evaluation of the loan program’s blended cost of capital and conditions due to grants and third-party capital; administrative costs of loan implementation; the term of loan products available to utility customers; past realized program participation savings results; regional commercial and residential lending rates; and so as to otherwise avoid subsidizing loan interest rates with utility service revenues. The Financial Officer shall present loan interest rates to a City Council committee prior to such rates going into effect. Introduced, considered favorably on first reading, and ordered published this 4th day of December, A.D. 2018, and to be presented for final passage on the 18th day of December, A.D. 2018. __________________________________ Mayor ATTEST: _______________________________ City Clerk 9.4 Packet Pg. 159 Attachment: Ordinance No. 162, 2018 (7475 : SR 160 161 162 163 164 165 Utilities Chapter 26) -7- Passed and adopted on final reading on the 18th day of December, A.D. 2018. __________________________________ Mayor ATTEST: _______________________________ City Clerk 9.4 Packet Pg. 160 Attachment: Ordinance No. 162, 2018 (7475 : SR 160 161 162 163 164 165 Utilities Chapter 26) -1- ORDINANCE NO. 163, 2018 OF THE COUNCIL OF THE CITY OF FORT COLLINS AMENDING CHAPTER 26 OF THE CODE OF THE CITY OF FORT COLLINS TO CLARIFY UTILITY ACCOUNTS, BILLING AND COLLECTION PRACTICES REGARDING NET METERING 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, Chapter 26 of the City Code regulates and governs the provision of utility services, and sets forth definitions and terms for applying fees and bill-credits for delivery of specified utility services; and WHEREAS, such provisions require periodic updating and modification for purposes of clarification and to ensure that the Code remains a dynamic document capable of responding to issues identified by staff, customers, and citizens and changing technology for and manner of delivering utility services; and WHEREAS, Fort Collins Utilities staff has identified provisions of Chapter 26 of the Code where clarification of the service fee and bill-credit practices for customer solar generation projects are required to better inform customers and align with current utility practices; and WHEREAS, on December 6, 2011, City Council adopted Ordinance No. 166, 2011, enacting a rate structure designed to encourage energy conservation measures toward meeting City Energy Policy and Climate Action Plan goals; and WHEREAS, the adopted rate structure changed to a seasonal tiered rate structure that resulted in a higher rate per kilowatt hour in the summer months, and created a corresponding seasonal adjustment in the net-metering credit calculations in Chapter 26 of the Code; and WHEREAS, on November 6, 2012, City Council adopted Ordinance No. 114, 2012, which funded a specific solar incentive program and effectively created a replacement rate methodology to that previously described in “parallel generation” subsections of Sections 26-464 through 26- 469 of the Code (“Rate Sections); and WHEREAS, in subsequent annual rate updates, City Council adopted adjustments to “net metering”, “net metering-community solar projects”, and “renewable resources” portions of the Rate Sections, rendering obsolete “parallel generation” terms in those sections; and WHEREAS, Utilities staff has determined the “parallel generation” subsections in the Rate Sections have been effectively replaced by more specific subsections of the Rate Sections and removal of the “parallel generation” will clarify interpretation and application of the rates and bill- credits associated with net metering, community solar projects, and renewable resources; and 9.5 Packet Pg. 161 Attachment: Ordinance No. 163, 2018 (7475 : SR 160 161 162 163 164 165 Utilities Chapter 26) -2- WHEREAS, the City Council has determined it is desirable to maintain appropriate utility service billing practices and the recommended clarification of such practices in the City Code, as set forth herein, is in furtherance of the benefits available to utility ratepayers. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows: Section 1. That the City Council hereby makes and adopts the determinations and findings contained in the recitals set forth above. Section 2. That Section 26-464(k) of the Code of the City of Fort Collins is hereby deleted in its entirety and subsection (k) shall be reserved for future use. Section 3. That Section 26-465(k) of the Code of the City of Fort Collins is hereby deleted in its entirety and subsection (k) shall be reserved for future use. Section 4. That Section 26-466(l) of the Code of the City of Fort Collins is hereby deleted in its entirety and subsection (l) shall be reserved for future use. Section 5. That Section 26-467(m) of the Code of the City of Fort Collins is hereby deleted in its entirety and subsection (m) shall be reserved for future use. Section 6. That Section 26-468(p) of the Code of the City of Fort Collins is hereby deleted in its entirety and subsection (p) shall be reserved for future use. Section 7. That Section 26-469(q) of the Code of the City of Fort Collins is hereby deleted in its entirety and subsection (q) shall be reserved for future use. Introduced, considered favorably on first reading, and ordered published this 4th day of December, A.D. 2018, and to be presented for final passage on the 18th day of December, A.D. 2018. __________________________________ Mayor ATTEST: _______________________________ City Clerk 9.5 Packet Pg. 162 Attachment: Ordinance No. 163, 2018 (7475 : SR 160 161 162 163 164 165 Utilities Chapter 26) -3- Passed and adopted on final reading on the 18th day of December, A.D. 2018. __________________________________ Mayor ATTEST: _______________________________ City Clerk 9.5 Packet Pg. 163 Attachment: Ordinance No. 163, 2018 (7475 : SR 160 161 162 163 164 165 Utilities Chapter 26) -1- ORDINANCE NO. 164, 2018 OF THE COUNCIL OF THE CITY OF FORT COLLINS AMENDING CHAPTER 26 OF THE CODE OF THE CITY OF FORT COLLINS TO CLARIFY ACCESS AND METERING CONDITIONS OF UTILITY SERVICES RELATED TO TRANSITION FROM MANUALLY-READ METERS TO ADVANCED METERING INFRASTRUCTURE (AMI) METERS 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, Chapter 26 of the City Code regulates and governs the provision of utility services; and WHEREAS, Chapter 26, Articles I, III-VI, and XII, of the City Code set forth conditions for receipt of utility services, including metering and Utility personnel access requirements, as well as definitions and terms for assessing and collecting fees and charges due for delivery of specified utility services; and WHEREAS, such provisions require updating and modification from time to time, for purposes of clarification, correction of errors and to ensure that the Code remains a dynamic document capable of responding to issues identified by staff, customers, and citizens and changing technology for and manner of delivering utility services; and WHEREAS, Fort Collins Utility Customer Connections staff has identified provisions of Chapter 26 of the City Code where clarification of service conditions, remedies for interference with Utility personnel in their performance of official duties, and manually-read metering service fees are required to better inform customers and align with current utility practices; and WHEREAS, on November 8, 2018, the Energy Board reviewed and voted unanimously to recommend approval of proposed revisions to Chapter 26 of the City Code to clarify utility service conditions, remedies for interference with Utility personnel in their performance of official duties, and manually-read metering service fees; and WHEREAS, the City Council has determined it is desirable to maintain appropriate utility service billing, collection practices, and the recommended clarification of such practices in the City Code, as set forth herein, is in furtherance of the benefits available to utility ratepayers. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows: Section 1. That the City Council hereby makes and adopts the determinations and findings contained in the recitals set forth above. Section 2. That Section 26-2 of the Code of the City of Fort Collins is hereby amended by addition of a new subsection (c) to read as follows: 9.6 Packet Pg. 164 Attachment: Ordinance No. 164, 2018 (7475 : SR 160 161 162 163 164 165 Utilities Chapter 26) -2- Sec. 26-2. - Utility users agree to the rules; penalty for breach; manually-read meter retirement. ... (c) Any user whose consumption is monitored by a manually read meter will be permanently transitioned to a standard wirelessly communicating (AMI) meter, capable of being read remotely, and may be required to pay a meter exchange fee, pursuant to § 26-712(b) and as otherwise set forth in administrative policies adopted by the Utilities Executive Director upon the occurrence of any of the following events: (1) Termination of service for non-payment; or (2) Inability of utility personnel to read or collect meter information after reasonable notice to the user, whether such inability results from (i) the structures on or configuration of the customer’s premises; (ii) location of meters; (iii) user’s obstruction of, interference with, or failure to respond to requests from utility personnel for access to meters; or (iv) any other cause not within the utilities’ control. Section 3. That Section 26-98(c) of the Code of the City of Fort Collins is hereby amended by addition of a new subsection (5) to read as follows: Sec. 26-98. - Water meter requirements and installation. ... (c) Water meter installations shall meet the requirements of the utilities standard construction specifications adopted by the Utilities Executive Director. Additionally: ... (5) All new construction will be metered with a standard wirelessly communicating (AMI) meter, capable of being read remotely. ... Section 4. That Section 26-219 of the Code of the City of Fort Collins is hereby amended to read as follows: Sec. 26-219. - Inspections; right of access. (a) The Utilities Executive Director may inspect the equipment and facilities of any user at any reasonable time to ascertain compliance with applicable ordinances, rules and regulations. Persons or occupants of premises where wastewater is created or discharged shall allow utility personnel ready access to the premises for the purposes of inspection, sampling, records examination and copying, and performance of any of their duties. The utility shall have the right to set up on the user's property such devices as are necessary to conduct sampling, inspection, compliance-monitoring and/or metering operations, including water communications modules and 9.6 Packet Pg. 165 Attachment: Ordinance No. 164, 2018 (7475 : SR 160 161 162 163 164 165 Utilities Chapter 26) -3- water meter touchpads. Where a user has security measures in force which would require proper identification and clearance before entry into its premises, the user shall make the necessary arrangements with the security guards so that, upon presentation of suitable identification, utility personnel will be permitted to enter without delay for the purposes of performing their specific responsibilities. While performing the necessary work on private property, utility personnel shall observe all security and safety rules applicable to the premises as established by the user. (b) If a duly authorized representative of the utility is refused admission to a user's premises or any City owned facilities thereon, including communications modules and water meter touchpads, the Utilities Executive Director may discontinue water or wastewater service to the premises until utility representatives have been afforded reasonable access to the premises and private sewer system to accomplish the inspection or sampling. Section 5. That Section 26-396(a) and (b) of the Code of the City of Fort Collins are hereby amended to read as follows: Sec. 26-396. - Use of meters required; damage to system prohibited, accuracy of meters. (a) No person shall take electrical energy from the distributing system except through a meter or other measuring device owned and installed by the City without the consent of the electric utility to take such electrical energy. All new construction shall be metered with a standard wirelessly communicating (AMI) meter, capable of being read remotely. (b) It shall be unlawful for the customer or any unauthorized person to tamper with, molest or damage directly or indirectly in any manner any part of the electrical system, or any City owned facilities, including meters. The customer shall be liable for any damage or loss to the property of the utilities or other persons and injury to utilities employees or other persons resulting from such unauthorized tampering or interference. ... Section 6. That a new Section 26-399 of the Code of the City of Fort Collins is hereby adopted to read as follows: Sec. 26-399. - Inspections; right of access. (a) The Utilities Executive Director may inspect the equipment and facilities of any user at any reasonable time to ascertain compliance with applicable ordinances, rules and regulations. Persons or occupants of premises receiving electric service shall allow utility personnel ready access to the premises for the purposes of inspection, records examination and copying, and performance of any of their duties. The utility shall have the right to set up on the user's property such devices as are necessary to conduct inspection, compliance- monitoring and/or metering operations. Where a user has security measures in force which would require proper identification and clearance before entry into a served premises, the user shall make the security necessary arrangements so that, upon presentation of suitable identification, utility personnel will be permitted to enter without delay for the purposes of performing specific responsibilities. While performing necessary work on private property, 9.6 Packet Pg. 166 Attachment: Ordinance No. 164, 2018 (7475 : SR 160 161 162 163 164 165 Utilities Chapter 26) -4- utility personnel shall observe all security and safety rules applicable to the premises as established by the user. (b) If a duly authorized representative of the utility is refused admission to a user's premises, or any City owned facilities thereon, including communications modules and meter touchpads, the Utilities Executive Director may discontinue electric service to the premises until utility representatives have been afforded reasonable access to the premises and the building electrical system to accomplish inspection and/or monitoring. Section 7. That Section 26-712(b) of the Code of the City of Fort Collins is hereby amended by the addition of a new fee description to read as follows: Sec. 26-712. - Utility bill and account charges authorized; procedures. ... (b) The following account and miscellaneous fees and charges shall apply to all City utility customers receiving service pursuant to the terms of Chapter 26, whether within or outside of the corporate limits of the City, except as otherwise expressly stated: Fees and Charges Amount Service connection fee for account with one or more metered services (including nonmetered services for the same account) $ 19.65 Customer-initiated rate change (after 90 days of new service) 19.65 Service connection fee for account with only nonmetered services (stormwater, wastewater, wind, flat commercial electric, sprinkler clocks, cable towers and floodlights) 10.00 Service fee to reinstate an account to the owner/ $ 10.00 9.6 Packet Pg. 167 Attachment: Ordinance No. 164, 2018 (7475 : SR 160 161 162 163 164 165 Utilities Chapter 26) -5- property manager between tenants Manually read meter exchange fee to replace a remotely-read meter with a manually read meter, based on direct cost plus fifteen (15) percent indirect costs $ 38.00 . . . . . . Other miscellaneous charges will be based on direct cost plus fifteen (15) percent indirect costs. ... Introduced, considered favorably on first reading, and ordered published this 4th day of December, A.D. 2018, and to be presented for final passage on the 18th day of December, A.D. 2018. __________________________________ Mayor ATTEST: _______________________________ City Clerk Passed and adopted on final reading on the 18th day of December, A.D. 2018. __________________________________ Mayor ATTEST: _______________________________ City Clerk 9.6 Packet Pg. 168 Attachment: Ordinance No. 164, 2018 (7475 : SR 160 161 162 163 164 165 Utilities Chapter 26) -1- ORDINANCE NO. 165, 2018 OF THE COUNCIL OF THE CITY OF FORT COLLINS AMENDING SECTIONS 26-120 AND 26-283 OF THE CODE OF THE CITY OF FORT COLLINS TO AUTHORIZE THE UTILITIES EXECUTIVE DIRECTOR TO WAIVE WATER PLANT INVESTMENT FEES AND SEWERPLANTINVESTMENT FEES IN LIMITED CIRCUMSTANCES WHEREAS, Chapter 26 of the City Code prohibits changes to property served by the City water and wastewater utilities that would significantly affect the nature or quantity of use, including but not limited to a change of use from residential to nonresidential without approval and payment of water plant investment fees (WPIFs) (Section 26-120(c)) or sewer plant investment fees (SPIFs) (Section 26-283(c)); and WHEREAS, Chapter 26 of the City Code does not include provisions that expressly permit the Utilities Executive Director to waive WPIFs or SPIFs in circumstances where a change of use from residential to nonresidential has occurred in the past and no WPIF of SPIF appears to have been charged by the respective utility based on a review of water service permits, sewer connection permits and/or building permits; and WHEREAS, Chapter 26 of the City Code does include provisions that expressly permit the Utilities Executive Director to waive WPIFs and SPIFs in other limited circumstances and contains provisions that might arguably be read to include authority to waive WPIFs and SPIFs but lack clarity; and WHEREAS, staff recommends that the Utilities Executive Director’s authority to grant a waiver be extended to circumstances where a WPIF and/or SPIF has not been charged in connection with a previously known change in use that occurred more than two (2) years before a customer requests a waiver and the failure to charge a WPIF and/or SPIF is likely the result of error or omission on the part of the utility for which the applicant is not culpable; and WHEREAS, the proposed extension of the Utilities Executive Director’s authority to issue such waiver is structured to apply in limited circumstances where the equities warrant the exercise of discretion to waive a WPIF and/or SPIF that may have been due in connection with a past event where such a waiver will not adversely affect the capacity of the utility to serve its customers and other stated requirements are met; and WHEREAS, providing authority for such a limited waiver of WPIF and/or SPIF is in the best interests of the City and benefits utility ratepayers by creating a mechanism to deal fairly with past unpaid amount, the collection or litigation of which may otherwise create additional costs to the utilities. 9.7 Packet Pg. 169 Attachment: Ordinance No. 165, 2018 (7475 : SR 160 161 162 163 164 165 Utilities Chapter 26) -2- 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 26-120 of the Code of the City of Fort Collins is hereby amended to read as follows: Sec. 26-120. - Water plant investment fees. (a) Any applicant desiring to connect to the water utility shall pay the utility a water plant investment fee (WPIF) pursuant to the schedule of fees prescribed by § 26-128 in addition to any other connection fees prescribed herein. Except to the extent that the deferral of all or any portion of such payment has been approved by the City Council by resolution or except as provided in Subsection (f) of this Section, this fee shall be paid in full at the time the water service connection permit is issued. If there is an increase in plant investment fee rates between the time of application for a water service permit and the actual payment of fees, the fee rates in effect at the time of payment shall apply. (b) The WPIF shall be based on and used for growth-related capital expansion costs of water supply, storage, transmission, treatment, distribution and administrative facilities that are reasonably related to the overall cost of and required in providing water services to serve new development. The fee shall vary with the number of dwelling units and the lot area served for residential users and with the size of the water meter for nonresidential users. The parameters and rates shall be reviewed by the City Manager annually and fees shall be presented to the City Council for approval no less frequently than biennially. (c) No user of City water shall make any changes or additions to the property served that would significantly affect the nature or quantity of the use of water without first obtaining a new water service permit from the utility and paying the WPIF based on the new use. Such changes include without limitation the resumption of service by replacement of an abandoned service line, an increase in the size of the water meter, an increase in the number of dwelling units or the lot area to be served and a change from residential to nonresidential use. (d) In the case where an existing service is being changed or replaced, the utility will credit the user an amount equal to the WPIF that would have been charged for the service before the change or addition, but if the credit so determined is less than the amount previously paid for a WPIF, the amount actually paid shall be allowed as the credit. No cash refund shall be paid to any water user whose allowable credit exceeds the new WPIF nor to any water user who obtains permission to decrease demand for service. If the existing service tap is less than three-fourths (¾) inch in diameter, the customer is credited for a three-fourths-inch tap or meter. The credits prescribed by this Subsection are not transferable. They shall apply only to the property served by the existing water service line and only to WPIF's owed to the utility and not to other utility fees or charges. 9.7 Packet Pg. 170 Attachment: Ordinance No. 165, 2018 (7475 : SR 160 161 162 163 164 165 Utilities Chapter 26) -3- (e) Notwithstanding the provisions of Subsections (a) and (c) of this Section the Utilities Executive Director may waive payment of the WPIF if the Utilities Executive Director determines that the request will not adversely affect the capacity of the water utility to treat and deliver water for its users, and that at least one of the following sets of requirements applies. Under either set of requirements set forth in Subsections (1) and (2) below, the Utilities Executive Director shall have the authority to discontinue the temporary water service if the capacity of the water utility to treat and deliver water to its users is adversely affected. (1) The applicant is a customer of the water utility and shall only use the water connection as a source of irrigation water for the establishment of new native vegetation. For the purposes of this requirement, native vegetation shall be as defined in the City's Land Use Code or, if native vegetation is no longer defined in the City's Land Use Code, the Utilities Executive Director shall determine whether the vegetation to be irrigated is native vegetation for the purposes of this Subsection (e) following consultation with relevant City departments. The approved period of such connection shall not exceed a period of three (3) consecutive irrigation seasons. The applicant shall physically separate and abandon the water connection from the City's water distribution system at the end of the approved period of such connection and shall, before any such connection is made, escrow funds with the Utility to complete such disconnection and abandonment, with the amount of the funds to be determined by the Utilities Executive Director based on the estimated direct costs to complete such disconnection and abandonment plus fifteen (15) percent for indirect costs. (2) The applicant is a City service area, department or division, or the Poudre Fire Authority, no new physical connection to the City's water system is required, water use under this Subsection (e) would not occur during the period of May 1 through September 30, and the Utilities Executive Director determines that the applicant's water use under this Subsection (e) during such time period is necessary because the applicant's regular water supply has become unavailable during that period and the unavailability of the applicant's regular water supply will result in measurable economic damage to the applicant. (3) The applicant is a customer of the water utility who, after notifying the water utility of a proposed change in use from residential to nonresidential use, was not charged a WPIF by the utility for said change; provided, however, that: a. The customer first requests a waiver of the uncharged WPIF, in writing, more than two (2) years after the change in use was noted on a new water service permit or building permit: and b. The Utilities Executive Director, in writing, finds that and sets forth the reasons why the failure to charge the WPIF by the utility is likely the result of error or omission on the part of the utility for which the customer is not culpable; and c. No waiver shall be authorized in connection with a change in use associated with any other alteration of the service, including the resumption of service by 9.7 Packet Pg. 171 Attachment: Ordinance No. 165, 2018 (7475 : SR 160 161 162 163 164 165 Utilities Chapter 26) -4- replacement of an abandoned service line, an increase in the size of the water meter, or an increase in the number of dwelling units or the lot area to be served. (f) In circumstances where a user has underpaid a WPIF as a result of a miscalculation of the user's WPIF, and the utility requires the user to pay the utility all or any portion of the difference between the corrected and miscalculated amounts of the WPIF, the Utilities Executive Director may allow the user to pay such amount over time under such reasonable terms and conditions as are approved by the Utilities Executive Director. (g) No person shall knowingly provide the water utility with false, inaccurate or fraudulent information to be relied upon by the utility in calculating a user's WPIF. Section 3. That Section 26-283 of the Code of the City of Fort Collins is hereby amended to read as follows: Sec. 26-283. - Sewer plant investment fees (SPIF); basis. (a) An applicant desiring to connect to the wastewater utility shall pay the utility a sewer plant investment fee (SPIF) as prescribed in § 26-284 of this Article in addition to any other connection fee or charge imposed by this Article. Except to the extent that the deferral of all or any portion of such payment has been approved by the City Council by resolution or except as provided in either Subsection (e) or Subsection (g) of this Section, this fee shall be paid in full at the time the sewer connection permit is issued. In the case of an increase in SPIF rates between the time of application for the permit and the applicant's actual payment of sewer connection charges, the rates in effect on the date of payment shall apply. (b) The SPIF shall be based on and used for growth-related capital expansion costs of wastewater collection, transmission, treatment and administrative facilities that are reasonably related to the overall cost of and required in providing wastewater services to serve new development. The fee shall vary with the number of dwelling units for residential users. For nonresidential users, the fee shall be based on: (1) quantity of discharge that may be determined by size of water meter or other means of accurately measuring or calculating flow quantity as approved by the Utilities Executive Director; and (2) the level of wastewater concentration of organic and solid materials. The parameters and rates shall be reviewed by the City Manager annually and fees shall be presented to the City Council for approval no less frequently than biennially. (c) No wastewater utility user shall make any changes or additions to the property served or operations at the property that would significantly affect the nature or quantity of the wastewater discharged and/or cause a change in the category of use without first obtaining the approval of the Utilities Executive Director and paying a SPIF based on the altered service. Such changes include without limitation the replacement of an abandoned service line, an increase in the water or sewer tap size, an increase in the number of dwelling units, a change from residential use to nonresidential use or a modification of production by a nonresidential user. 9.7 Packet Pg. 172 Attachment: Ordinance No. 165, 2018 (7475 : SR 160 161 162 163 164 165 Utilities Chapter 26) -5- (d) In the case where an existing service is being changed or replaced, the utility will credit the user an amount equal to the SPIF that would have been charged for the service before the change or addition, but if the credit so determined is less than the amount previously paid for a SPIF, the amount actually paid shall be allowed as the credit. No cash refund shall be paid to any user whose allowable credit exceeds the new SPIF, nor to any user who obtains permission to decrease the level of service. The credits prescribed by this Subsection are not transferable. The credits apply only to the property served by the existing private sewer and only to SPIF's owed to the utility and not to other utility fees or charges. (e) Notwithstanding the provisions of Subsections (a) and (c) of this Section, the Utilities Executive Director may waive payment of the SPIF if the Utilities Executive Director determines that sufficient excess wastewater system capacity is available, that the request will not adversely affect the capacity of the utility to treat wastewater for its users, and that the following requirements are satisfied: (1) The applicant is a customer of the wastewater utility who, after notifying the wastewater utility of a proposed change in use from residential to nonresidential use, was not charged a SPIF by the utility in connection for said a change; and a. The customer first requests a waiver of the uncharged SPIF, in writing, more than two (2) years after the change in use was noted on a new water sewer connection permit or building permit: and b. The Utilities Executive Director, in writing, finds that and sets forth the reasons why the failure to charge the SPIF by the utility is likely a result of error or omission on the part of the utility for which the customer is not culpable; and c. the waiver does not involve SPIFs due in connection with a change in use associated with any other alteration of the service, including the replacement of an abandoned service line, an increase in the water or sewer tap size, an increase in the number of dwelling units, or a modification of production by a nonresidential user. (f) In circumstances where a user has underpaid a SPIF as a result of a miscalculation of the user's SPIF, and the utility requires the user to pay the utility all or any portion of the difference between the corrected and miscalculated amounts of the SPIF, the Utilities Executive Director may allow the user to pay such amount over time under such reasonable terms and conditions as are approved by the Utilities Executive Director. (g) No person shall knowingly provide the wastewater utility with false, inaccurate or fraudulent information to be relied upon by the utility in calculating a user's SPIF. (h) If the Utilities Executive Director determines that sufficient excess wastewater system capacity is available, and if a customer requires temporary service for a temporary use or condition not exceeding three (3) years in duration, the Utilities Executive Director may arrange for the provision of temporary wastewater service through a special services agreement in the manner prescribed in § 26-290 of this Article. 9.7 Packet Pg. 173 Attachment: Ordinance No. 165, 2018 (7475 : SR 160 161 162 163 164 165 Utilities Chapter 26) -6- (1) If the full SPIF due in connection with any such service is not paid prior to connection or deferred as provided in Subsection (a) above, the associated special services agreement shall require the customer to pay a temporary wastewater plant capacity charge each month, which charge shall be one-twelfth ( 1 /12) of eight (8) percent of the calculated SPIF charge, based on BOD, TSS and monthly discharge volume in gallons. These payments will not be credited against any SPIF amount due in connection with service to the customer for any subsequent temporary or permanent use or condition, regardless of whether the permanent use or condition is the same as, or comparable to, the temporary use or condition. (2) The customer shall also be required to pay any and all other service and connection fees or charges associated with the temporary wastewater service as generally imposed by this Article, including, but not limited to, monthly service charges for discharged wastewater. If charges for temporary wastewater service are based upon estimates of the quantity or characteristics of the wastewater discharged and the actual quantity or characteristics are subsequently measured and found to have exceeded the discharge limits for which any fees or charges have been paid, the customer shall be required to pay such additional temporary wastewater plant capacity charges, monthly charges or other charges required in light of the underestimate of discharged flows. (3) Except as set forth herein, all requirements for wastewater discharges in this Article, including, but not limited to, industrial pretreatment and other regulatory requirements, shall apply to temporary wastewater service. Introduced, considered favorably on first reading, and ordered published this 4th day of December, A.D. 2018, and to be presented for final passage on the 18th day of December, A.D. 2018. __________________________________ Mayor ATTEST: _______________________________ City Clerk 9.7 Packet Pg. 174 Attachment: Ordinance No. 165, 2018 (7475 : SR 160 161 162 163 164 165 Utilities Chapter 26) -7- Passed and adopted on final reading on the 18th day of December, A.D. 2018. __________________________________ Mayor ATTEST: _______________________________ City Clerk 9.7 Packet Pg. 175 Attachment: Ordinance No. 165, 2018 (7475 : SR 160 161 162 163 164 165 Utilities Chapter 26) ers ersmanua who select and pay for the l-read d dcorr the amount of information neede needed to ccounts counts need one or two readings (dependin depen tered ed into a mobile device; TOD will require th higher eracco resolution of metering data to me City personnel must be on the cust customer’s sting issues s inclu including: customers customersterminate who have their service terminate c meter; and frequent quent recurrence of conflict regarding suc ch of these thesecreat issues cause delays in bill uage e is being added to address the th abov he e issues stated above, the ne new co s toco to the standard wirelessly needed neededbill for f ing. g.met A me nge is also include added to udin 9.1 Packet Pg. 147 Attachment: First Reading Agenda Item Summary, December 4, 2018 (w/o attachments) (7475 : SR 160 161 162 163 164 165 Utilities Chapter 26) ces to Contamination, Health Hazard, Pollut that thatmanne are being addressed in simila similar updated edCross C -Connection Manual anual and the to authorize orize the Utilities Executive Director D initions for Data Managed by Utility Servic Servi e of ofword this item is to add definition of the wor ing this definition maintains priv privacy of custom ysis by City Staff or other intereste interested parties Code de re references aggregated tedstatis s mation ation may be disclosed to t the , location or habits of ind ects customer’s data to be add 9.1 Packet Pg. 146 Attachment: First Reading Agenda Item Summary, December 4, 2018 (w/o attachments) (7475 : SR 160 161 162 163 164 165 Utilities Chapter 26) 9.1 Packet Pg. 145 Attachment: First Reading Agenda Item Summary, December 4, 2018 (w/o attachments) (7475 : SR 160 161 162 163 164 165 Utilities Chapter 26)