HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 11/19/2019 - ITEMS RELATING TO 2019 FEE UPDATEAgenda Item 1
Item # 1 Page 1
AGENDA ITEM SUMMARY November 19, 2019
City Council
STAFF
Jennifer Poznanovic, Project and Revenue Manager
Cyril Vidergar, Legal
Eric Potyondy, Legal
John Duval, Legal
SUBJECT
Items Relating to 2019 Fee Update.
EXECUTIVE SUMMARY
A. Second Reading of Ordinance No. 130, 2019, Amending Chapter 7.5 of the Code of the City of Fort Collins
to Implement the Phase III Increases for the Capital Expansion Fees and Increase for Inflation the Capital
Expansion Fees and the Transportation Expansion Fee.
B. Second Reading of Ordinance No. 131, 2019, 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.
C. Second Reading of Ordinance No. 132, 2019, Amending Chapter 26 of the Code of the City of Fort Collins
to Revise Sewer Plant Investment Fees.
D. Second Reading of Ordinance No. 133, 2019, Amending Chapter 26 of the Code of the City of Fort Collins
to Revise the Stormwater Plant Investment Fees.
E. Second Reading of Ordinance No. 134, 2019, Amending Chapter 26 of the Code of the City of Fort Collins
to Revise Water Plant Investment Fees.
F. Second Reading of Ordinance No. 135, 2019, Amending Chapter 26 of the Code of the City of Fort Collins
to Revise the Water Supply Requirements Fee.
These Ordinances, unanimously adopted on First Reading on November 5, 2019, update fees associated with
Electric Capacity Fees, Water Supply Requirement Fees, Wet Utility Plant Investment Fees (PIFs) and Step III
of the 2017 Capital Expansion Fees (CEFs). 2019 fee updates include: Electric Capacity Fees, Water Supply
Requirement Fees, Wet (Water, Wastewater and Stormwater) Utility Plant Investment Fees and Step III of the
2017 Capital Expansion Fees.
Agenda Item 1
Item # 1 Page 2
ATTACHMENTS
1. First Reading Agenda Summary, November 5, 2019 (w/o attachments) (PDF)
2. Ordinance No. 130, 2019 (PDF)
3. Ordinance No. 131, 2019 (PDF)
4. Ordinance No. 132, 2019 (PDF)
5. Ordinance No. 133, 2019 (PDF)
6. Ordinance No. 134, 2019 (PDF)
7. Ordinance No. 135, 2019 (PDF)
Agenda Item 8
Item # 8 Page 1
AGENDA ITEM SUMMARY November 5, 2019
City Council
STAFF
Jennifer Poznanovic, Project and Revenue Manager
John Duval, Legal
Eric Potyondy, Legal
Cyril Vidergar, Legal
SUBJECT
Items Relating to the 2019 Fee Update.
EXECUTIVE SUMMARY
A. First Reading of Ordinance No. 130, 2019, Amending Chapter 7.5 of the Code of the City of Fort
Collins to Implement the Phase III Increases for the Capital Expansion Fees and Increase for Inflation
the Capital Expansion Fees and the Transportation Expansion Fee.
B. First Reading of Ordinance No. 131, 2019, 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.
C. First Reading of Ordinance No. 132, 2019, Amending Chapter 26 of the Code of the City of Fort
Collins to Revise Sewer Plant Investment Fees.
D. First Reading of Ordinance No. 133, 2019, Amending Chapter 26 of the Code of the City of Fort
Collins to Revise the Stormwater Plant Investment Fees.
E. First Reading of Ordinance No. 134, 2019, Amending Chapter 26 of the Code of the City of Fort
Collins to Revise Water Plant Investment Fees.
F. First Reading of Ordinance No. 135, 2019, Amending Chapter 26 of the Code of the City of Fort
Collins to Revise the Water Supply Requirements Fee.
The purpose of this item is to review fee updates associated with Electric Capacity Fees, Water Supply
Requirement Fees, Wet Utility Plant Investment Fees (PIFs) and Step III of the 2017 Capital Expansion Fees
(CEFs). Fee updates have been reviewed by Council Finance Committee twice, and at the November 8th Council
Work Session Council was fully supportive of brining fees forward for Council adoption. Staff met with nine
organizations across the City in the summer of 2019 and overall organizations were supportive of the approach
and cadence.
Coordination of Council approved fees began in 2016 to provide a more holistic view of the total cost impact.
Previously, fee updates were presented to Council on an individual basis. After the 2019 fee update, fee phasing
will be complete with regular two and four-year cadence updates beginning in 2021.
2019 fee updates include: Electric Capacity Fees, Water Supply Requirement Fees, Wet (Water, Wastewater
and Stormwater) Utility Plant Investment Fees and Step III of the 2017 Capital Expansion Fees.
ATTACHMENT 1
Agenda Item 8
Item # 8 Page 2
Staff proposes the following fee changes:
Wet Utility PIFs as proposed
Electric Capacity Fees as proposed
Water Supply Requirement Fee as proposed
100% of proposed 2017 Capital Expansion Fees (Step III)
Transportation Capital Expansion Fees (inflation only)
Development Review/Building Fees were initially planned to be part of the 2019 update but have been decoupled
and will come forward once finalized.
STAFF RECOMMENDATION
Staff recommends adoption of the Ordinances on First Reading.
BACKGROUND / DISCUSSION
Since the fall of October 2016, staff has worked to coordinate the process for updating all new development
related fees that require Council approval. This resulted in the completion of two studies, the Capital
Expansion Fee Study dated August 2016 (CEF Study) for the neighborhood park, community park, fire, police
and general government capital expansion fees (CEFs) and the Transportation Capital Expansion Fee Study
dated April 2017 (TCEF Study) for the transportation capital expansion fee (TCEF).
Development related fees that are approved by Council are CEFs, the TCEF, five Utility Fees and Building
Development Fees.
Previously, fee updates were presented to Council on an individual basis. However, it was determined that
updates should occur on a regular two and four-year cadence and fees updates should occur together each
year to provide a more holistic view of the impact of any fee increases.
Fee coordination includes a detailed fee study analysis for CEFs, the TCEFs and Development
Review/Building Fees every four years. This requires an outside consultant through a request for proposal
(RFP) process where data is provided by City staff. Findings by the consultant are also verified by City staff.
For Utility Fees, a detailed fee study is planned every two years. These are internal updates by City staff with
periodic consultant verification. In the future, fee study analysis will be targeted in the odd year before
Budgeting for Outcomes (BFO). In years without an update, an inflation adjustment occurs.
Below is the current fee timeline:
ATTACHMENT 1
Agenda Item 8
Item # 8 Page 3
Phase I of the fee updates included CEFs, TCEFs, Electric Capacity Fees, and Raw Water/CIL and were
adopted in 2017. Phase II included Wet Utility PIFs and Step II of CEFs and TCEFs, which were approved in
2018. Development review and building permit fees were originally included in Phase II but were decoupled
from the 2018 update.
In Phase I (2017), the CEFs were increased to 75% of the amounts recommended in the CEF Study and the
TCEF was increased to 80% of the amounts recommended in the TCEF Study. In Phase II (2018), the CEFs
were increased to 90% of the amounts recommended in the CEF Study and the TCEF was increased to 100%
of the amounts recommended in the TCEF Study. This Ordinance implements Phase III by increasing the
CEFs to 100% of the amounts recommended in the CEF Study.
Due to the concern in the development and building community around fee changes, Council asked for a fee
working group to be created to foster a better understanding of fees prior to discussing further fee updates. In
August of 2017, the Fee Working Group commenced comprised of a balanced group of stakeholders –
citizens, business-oriented individuals, City staff and a Council liaison. The Fee Working Group met 14 times
and was overall supportive of the fee coordination process and proposed fee updates.
The 2019 phase III update includes Electric Capacity Fees, Water Supply Requirement Fees, Wet Utility Plant
Investment Fees and Step III of the 2017 Capital Expansion Fees. After the 2019 fee update, fee phasing will
be complete with regular two and four-year cadence updates beginning in 2021.
Development Review/Building Fees were initially planned to be part of the 2019 update but have been
decoupled and will come forward once finalized. The 2019 Fee Working Group is focused on Development
Review/Building Fees only and met four times as of mid-September. The 2019 Fee Working Group consists of
a balanced group of stakeholders – citizens, business-oriented individuals and City staff.
2019 Utility Fee Updates
The proposed changes to Utility Fees for a single-family, residential home include a 1.7% increase to the
Electric Capacity Fee (ECF) and increases to the three Wet Utility Fees ranging between 1.5% and 6.7%. The
Water Plant Investment Fee (PIF) is proposed to increase 6.7%, the Wastewater PIF is proposed to increase
1.5% and the Stormwater PIF is proposed to increase 3.3% from current fee levels.
The chart below summarizes the proposed Utility Fees for a single-family home, assuming an 8,600 square
feet lot and 4 bedrooms:
ATTACHMENT 1
Agenda Item 8
Item # 8 Page 4
It should be noted that the cost of water and water storage is increasing at a rate well above other
development costs. At the time the City began the community outreach for the 2020 Development Fees the
best estimate we had was the previous estimate of $74M. Since that time a more comprehensive estimate
which also accounts for potential mitigation costs which may or may not be realized has been developed. The
City did not feel that it was fair to adjust the Water Supply Requirement for 2020 after conducting the
outreach. The City will update the costs as more information becomes available and mitigation requirements
are refined and update the Water Supply Requirement fee on a 2 year cycle with the next update coming in
2022.
2019 Capital Expansion Fee Updates
The chart below shows the current and proposed fee updates for CEFs:
Step III fees are a 12.6 % increase from current fee levels (Step II). CEF fee increases are 100% of full fee
levels recommended in 2017. The CPI-U index for Denver-Aurora-Lakewood is used for CEF inflation. The
Engineering News Record for TCEFs.
Comparison Charts
Fort Collins proposed fees are in the upper-middle of the pack:
Step III - Full fees proposed in 2017 with inflation
Land Use Type Unit
N'hood
Park
Comm.
Park Fire Police Gen. Gov't
Step III
Total w
Inflation
%
Increase
w Inflation
TCEF
Total w
Inflation
Total %
Increase
w Inflation
Residential, up to 700 sq. ft. Dwelling $1,855 $2,619 $454 $254 $619 $5,801 12.6% $2,336 8.9%
Residential, 701-1,200 sq. ft. Dwelling $2,483 $3,506 $614 $344 $834 $7,782 12.6% $4,338 8.0%
Residential, 1,201-1,700 sq. ft. Dwelling $2,712 $3,828 $668 $374 $911 $8,493 12.6% $5,632 7.5%
Residential, 1,701-2,200 sq. ft. Dwelling $2,740 $3,868 $679 $379 $925 $8,591 12.6% $6,586 7.1%
Residential, over 2,200 sq. ft. Dwelling $3,053 $4,312 $756 $423 $1,029 $9,573 12.6% $7,059 7.2%
Commercial 1,000 sq. ft. 0 0 $572 $320 $1,564 $2,456 12.6% $8,594 3.1%
Office and Other Services 0 0 $572 $320 $1,564 $2,456 12.6% $6,331 3.7%
Industrial/Warehouse 1,000 sq. ft. 0 0 $134 $74 $369 $577 12.6% $2,043 3.1%
ATTACHMENT 1
Agenda Item 8
Item # 8 Page 5
The following chart shows neighboring cities across water districts with and without raw water. Fort Collins fees
are in line with neighboring cities:
Fort Collins fees and the cost of code is leveling as a percentage of median new home sales price:
ATTACHMENT 1
Agenda Item 8
Item # 8 Page 6
Below is the 2019 fee roadmap:
CITY FINANCIAL IMPACTS
2019 fee updates were discussed with Council Finance Committee in May and August of 2019. Fee updates
will result in an increase to fee payers.
BOARD / COMMISSION RECOMMENDATION
2019 fee updates were discussed with Council Finance Committee in May and August of 2019. Council
Finance Committee recommended bringing the topic forward at the October 8th Council Work Session. From
the Work Session, Council recommended ordinance readings in November 2019 as next steps.
PUBLIC OUTREACH
In an effort towards better communication, outreach and notification of impact fee changes, staff met with nine
organizations across the City in the summer of 2019.
May June/July August October November 1/1/2020
Capital Expansion Fees CFC Outreach CFC Council Ordinance Effective
Transportation CEFs
Electric Capacity Fees CFC Outreach CFC Council Ordinance Effective
Water Supply Requirement CFC Outreach CFC Council Ordinance Effective
Wet Utility Fees CFC Outreach CFC Council Ordinance Effective
Building Development Fees Working Group Working Group
ATTACHMENT 1
Agenda Item 8
Item # 8 Page 7
Overall, organizations were supportive of the approach and cadence. There was acknowledgement that
regular fee updates are necessary.
Staff also heard:
• Supportive of 2018 fee group recommendations
• Progressive fees/if where possible
• Investigate revenue alternatives to support parks refresh & maintenance
• Explore stronger support for affordable housing
• Concerns about attainable housing - it may be less desirable to live here
• Policy questions - development standards going forward, alignment on total cost including operations
and maintenance
Additional communications to existing non-residential customers impacted by excess water use surcharges, as
well as customer feedback, is included in the Customer Communication Excess Water Surcharges attachment.
ATTACHMENTS
1. 2019 Fee Updates Council Work Session updated 2019-10-08 (PPTX)
2. Approved CFC Minutes 031819 (PDF)
3. Approved CFC Minutes 052019 (PDF)
4. Draft CFC Minutes 081919 (DOCX)
5. EAC Capital Expansion Fees Memo Final (PDF)
6. Work Session Memo on 2019 Fee Updates 2019-10-11 (PDF)
7. Customer Communication Excess Water Surcharges (PDF)
ATTACHMENT 1
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ORDINANCE NO. 130, 2019
OF THE COUNCIL OF THE CITY OF FORT COLLINS
AMENDING CHAPTER 7.5 OF THE CODE OF THE CITY OF FORT
COLLINS TO IMPLEMENT THE PHASE III INCREASES FOR THE CAPITAL
EXPANSION FEES AND INCREASE FOR INFLATION THE CAPITAL EXPANSION FEES
AND THE TRANSPORTATION EXPANSION FEE
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 City’s home rule powers is the power to regulate, as a matter of
purely local and municipal 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 and general government capital expansion fees (collectively, “Capital
Expansion Fees”), and the City’s street oversizing capital improvement expansion fee, now called
the transportation expansion fee (“TEF”); and
WHEREAS, as a result of that review, the City commissioned an impact fee study for the
Capital Expansion Fees that has resulted in the “Capital Expansion Fee Study” dated August 2016
(the “CEF Study”), 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 TEF that has resulted
in the “Transportation Capital Expansion Fee Study” dated April 2017 (the “TEF Study”), which
has also identified the need to increase and decrease the TEF by various amounts depending on
the type of development proposed; and
WHEREAS, City Code Section 7.5-18 provides that the Capital Expansion Fees and the
TEF shall also be increased or decreased annually for inflation; and
WHEREAS, in 2017, City Council adopted Ordinance No. 049, 2017, implementing,
beginning on October 1, 2017, the Phase I increases of the Capital Expansion Fees to 75% of the
increased amounts recommended in the CEF Study and of the TEF to 80% of the increased
amounts recommended in the TEF Study, but fully implementing the recommended reductions to
the TEF; and
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WHEREAS, in 2018, City Council adopted Ordinance No. 166, 2018, implementing,
beginning on January 1, 2019, the Phase II increases of the Capital Expansion Fees to 90% of
amounts recommended in the CEF Study, plus inflation, and of the TEF to 100% of the amounts
recommended in the TEF Study, plus inflation; and
WHEREAS, based on the CEF Study and the general approach and direction of City
Council, including the Council Finance Committee, this Ordinance enacts Phase III of the
increases to the Capital Expansion Fees; and
WHEREAS, this Ordinance increases the Capital Expansion Fees to 100% of the amounts
recommended in the CEF Study, plus inflation, beginning on January 1, 2020; and
WHEREAS, this Ordinance also increases the TEF, but for inflation only; 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 and the TEF be 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 Section 7.5-28(a) 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:
2019
As of January 1,
2020
Resid., up to 700 sq. ft. $2,326.00 $2,619.00
Resid., 701 to 1,200 sq. ft. 3,114.00 3,506.00
Resid., 1,201 to 1,700 sq. ft. 3,400.00 3,828.00
Resid., 1,701 to 2,200 sq. ft. 3,436.00 3,868.00
Resid., over 2,201 sq. ft. 3,830.00 4,312.00
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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.
Section 3. That Section 7.5-29(a) 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:
2019
As of January 1,
2020
Resid., up to 700 sq. ft. $226.00 $254.00
Resid., 701 to 1,200 sq. ft. 305.00 344.00
Resid., 1,201 to 1,700 sq. ft. 332.00 374.00
Resid., 1,701 to 2,200 sq. ft. 337.00 379.00
Resid., over 2,200 sq. ft. 375.00 423.00
Commercial buildings (per 1,000
sq. ft.)
284.00
320.00
Industrial buildings (per 1,000 sq.
ft.)
66.00
74.00
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.
Section 4. That Section 7.5-30(a) 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.
(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:
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2019
As of January 1,
2020
Resid., up to 700 sq. ft. $403.00 $454.00
Resid., 701 to 1,200 sq. ft. 546.00 614.00
Resid., 1,201 to 1,700 sq. ft. 593.00 668.00
Resid., 1,701 to 2,200 sq. ft. 603.00 679.00
Resid., over 2,200 sq. ft. 671.00 756.00
Commercial buildings (per 1,000 sq. ft.) 508.00 572.00
Industrial buildings (per 1,000 sq. ft.) 119.00 134.00
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.
Section 5. That Section 7.5-31(a) 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:
2019
As of January
1, 2020
Resid., up to 700 sq. ft. $549.00 619.00
Resid., 701 to 1,200 sq. ft. 741.00 834.00
Resid., 1,201 to 1,700 sq. ft. 809.00 911.00
Resid., 1,701 to 2,200 sq. ft. 821.00 925.00
Resid., over 2,200 sq. ft. 914.00 1,029.00
Commercial buildings (per 1,000 sq. ft.) 1,389.00 1,564.00
Industrial buildings (per 1,000 sq. ft.) 327.00
327.00
369.00
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.
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Section 6. 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
2019
As of January
1, 2020
Resid., up to 700 sq. ft. $2,321.00 $2,336.00
Resid., 701 to 1,200 sq. ft. 4,310.00
4,338.00
Resid., 1,201 to 1,700 sq. ft. 5,596.00 5,632.00
Resid., 1,701 to 2,200 sq. ft. 6,543.00 6,586.00
Resid., over 2,200 sq. ft. 7,014.00 7,059.00
Commercial 8,539.00 8,594.00
Office and Other Services 6,291.00 6,331.00
Industrial/Warehouse 2,030.00 2,043.00
Section 7. That Section 7.5-71(b) 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.
(b) The amount of the fee established in this Section shall be determined for each dwelling unit
as follows:
2019
As of January 1,
2020
Resid., up to 700 sq. ft. $1,647.00 $1,855.00
Resid., 701 to 1,200 sq. ft. 2,205.00 2,483.00
Resid., 1,201 to 1,700 sq. ft. 2,408.00 2,712.00
Resid., 1,701 to 2,200 sq. ft. 2,433.00 2,740.00
Resid., over 2,200 sq. ft. 2,712.00 3,053.00
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Introduced, considered favorably on first reading, and ordered published this 5th day of
November, A.D. 2019, and to be presented for final passage on the 19th day of November, A.D.
2019.
__________________________________
Mayor
ATTEST:
_______________________________
City Clerk
Passed and adopted on final reading on the 19th day of November, A.D. 2019.
__________________________________
Mayor
ATTEST:
_______________________________
City Clerk
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ORDINANCE NO. 131, 2019
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 (“ECF”) and a Building Site Charge (“BSC”); 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 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, Fort Collins Utilities staff uses an approved cost allocation methodology to
calculate ECF and BSC to assign costs based on actual system value, i.e. the “buy-in” approach
also used to calculate service connection fees for water and wastewater services; and
WHEREAS, the values and costs used in applying this cost allocation methodology are
updated on a two-year cycle; and
WHEREAS, the Energy Board considered the proposed 2019 ECF and BSC adjustments
at its meeting on September 12, 2019, and recommended approval of the adjustments; 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 values and costs applied in calculating ECF and BSC for new or
modified electric service connections.
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF
FORT COLLINS as follows:
Section 1. That 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:
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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
$1,563
b. For a single-family panel size with two hundred (200) amp service $1,967
c. For a single-family with electric heat, per dwelling unit $2,587
d. For a multi-family panel size with one hundred fifty (150) amp service (non-
electric heat), per dwelling unit
$1,382
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
$2,108
. . .
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.
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. . .
(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 $1,248.00 $8.70/Foot
4/0 Mobile Home Service $987.00 N/A
. . .
Section 4. That Section 26-475(b) and (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.
. . .
(b) The ECF shall be the total of the kVA service charge and systems modification
charge, to be determined as follows:
(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 = 341.28 + 21.82 x ln(kW)
primary metered services $/kW = 227.04 + 5.93 x ln(kW),
Where ln is the natural logarithm
kW is calculated as follows:
-4-
three phase services kW = A x V x SQRT(3) x PF x 0.3/1000
single phase services kW = A x V x PF x 0.3/1000
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.
. . .
(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 § 26-475(a). The
BSC shall be the total of the primary circuit charge, transformer installation charge and any
additional charges, determined as follows:
(1) The primary circuit charge for service from the utility source to the
transformer shall be as follows:
a. For single-phase service, per foot of primary circuit $18.54
b. For three-phase service, per foot of primary circuit $27.61
(2) The transformer installation charge shall be as follows:
a. For single-phase service, per transformer $1,708.51
b. For three-phase service, per transformer $3,166.54
. . .
Section 5. That the modifications set forth above shall be effective for all fees paid
on or after January 1, 2020.
-5-
Introduced, considered favorably on first reading, and ordered published this 5th day of
November, A.D. 2019, and to be presented for final passage on the 19th day of November, A.D.
2019.
__________________________________
Mayor
ATTEST:
_______________________________
City Clerk
Passed and adopted on final reading on the 19th day of November, A.D. 2019.
__________________________________
Mayor
ATTEST:
_______________________________
City Clerk
-1-
ORDINANCE NO. 132, 2019
OF THE COUNCIL OF THE CITY OF FORT COLLINS
AMENDING CHAPTER 26 OF THE CODE OF THE CITY OF FORT
COLLINS TO REVISE SEWER PLANT INVESTMENT FEES
WHEREAS, the City Council is empowered and directed by Article XII, Section 6 of the
Charter of the City of Fort Collins, to by ordinance from time to time fix, establish, maintain, and
provide for the collection of such rates, fees or charges for water and for other utility services
furnished by the City as will produce revenues sufficient to pay the costs, expenses, and other
obligations as set forth therein; and
WHEREAS, Article IV, Chapter 26 of the City Code establishes and sets forth the
wastewater utility as a utility service furnished by and an enterprise of the City; and
WHEREAS, City Code Sections 26-283 and 26-284 provide for sewer plant investment
fees (“SPIFs”) to be based on and used for growth-related capital expansion costs of wastewater
collection, transmission, treatment, and administrative facilities that are reasonably related to the
overall costs of and required in providing wastewater services to serve new development; and
WHEREAS, City Code Section 26-283 further requires that the City Manager annually
review the parameters and rates of the SPIFs and also requires that the City Manager present such
fees to the City Council for approval no less frequently than biennially; and
WHEREAS, the City Manager and City staff have also recommended to the City Council
adjustment of the SPIFs; and
WHEREAS, the Water Board considered the proposed SPIFs adjustments at its meeting
on September 19, 2019, and recommended approval of the proposed adjustments; and
WHEREAS, based on the foregoing, City Council desires to amend Chapter 26 of the City
Code to adjust the scope and rate of the PIFs as set forth herein.
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT
COLLINS as follows:
Section 1. That the City Council hereby makes any and all determinations and findings
contained in the recitals set forth above.
Section 2. That Section 26-284 of the Code of the City of Fort Collins is hereby
amended to read as follows:
Sec. 26-284. - Sewer plant investment fees and surcharges established.
(a) The schedule of sewer plant investment fees, subject to the exceptions and
additional requirements provided in this Section, is as follows:
-2-
Category SPIF
A Single-family
Per
dwelling
$3,590.00
B and C Duplex and Multi-family
Per each
dwelling
unit or
mobile
home space
$2,590.00
D, E, F Non-residential and Industrial
Water meter size (inches) Fee Fee
¾ $7,710.00
1 $17,190.00
1½ $32,350.00
2 $67,120.00
3 and above
Calculated on an individual
basis based on peak wastewater
flow (determined in the manner
set forth hereinafter) but not
less than the charge for a two-
inch meter
G User outside
Same as equivalent category,
plus any special sanitation
district fees
H Special
Determined pursuant to
Subsection (d) of this Section
. . .
(d) The amount of the plant investment fee and surcharge for each nonresidential
surcharged user, users in Category H and any user that is expected to generate greater than its
proportionate share of peak day flow at the treatment plant for the applicable category
(including both contributed wastewater volume and volume related to infiltration and inflow),
shall be calculated utilizing the following formula:
SPIF = Site Flow × [Flow$ + (BOD × BOD$
) + (TSS × TSS$)] + I&I Flow × [Flow$
+ (200 mg/l
× BOD$) + (250 mg/l × TSS$
)]
-3-
Where:
SPIF =
Plant investment fee for Category H users and users
discharging wastewater with average concentrations of
BOD and/or TSS which exceed those average
concentrations which are set forth in § 26-282(b) under
Category E-34
Site
Flow
=
The user's proportionate share of peak day flow at the
treatment plant based on site flow discharge from
user's site
I&I
Flow
=
That proportionate share of peak day flow due to
infiltration and inflow as allocated to user's site flow
discharge. I&I Flow is calculated based on Site Flow
multiplied by
46.5%
Flow$ =
Unit cost of facilities attributable to treating
wastewater flow
Per Gallon $9.81
BOD =
Average BOD concentration for user category or
measured BOD concentration for the user as
determined in accordance with Subsection (c) of this
Section, but not less than 200 mg/l
BOD$ = Unit cost of facilities attributable to treating BOD Per mg/l $0.0147
TSS =
Average TSS concentration for user category or
measured TSS concentration for the user as determined
in accordance with Subsection (c) of this Section, but
not less than 250 mg/l
TSS$ = Unit cost of facilities attributable to treating TSS Per mg/l $0.0117
. . .
(f) For purposes of this Section, the proportionate share of peak day flow at the treatment plant
for users in Categories D, E and F shall be deemed to be:
Water Meter Size
(inches)
Peak Flow (gallons per day)
¾ 491
1 1,045
1½ 1,965
2 4,077
-4-
3 and greater
Calculated on an individual basis based on user's proportionate share
of peak day flow at the treatment plant (including both contributed
wastewater volume and volume related to infiltration and inflow) but
not less than the peak day flow for a two-inch meter
Section 4. That the modifications set forth above shall be effective for all fees paid on
or after January 1, 2020.
Introduced, considered favorably on first reading, and ordered published this 5th day of
November, A.D. 2019, and to be presented for final passage on the 19th day of November, A.D.
2019.
__________________________________
Mayor
ATTEST:
_______________________________
City Clerk
Passed and adopted on final reading on the 19th day of November, A.D. 2019.
__________________________________
Mayor
ATTEST:
_______________________________
City Clerk
-1-
ORDINANCE NO. 133, 2019
OF THE COUNCIL OF THE CITY OF FORT COLLINS
AMENDING CHAPTER 26 OF THE CODE OF THE CITY OF FORT
COLLINS TO REVISE THE STORMWATER PLANT INVESTMENT FEES
WHEREAS, the City Council is empowered and directed by Article XII, Section 6 of the
Charter of the City of Fort Collins, to by ordinance from time to time fix, establish, maintain, and
provide for the collection of such rates, fees or charges for water and for other utility services
furnished by the City as will produce revenues sufficient to pay the costs, expenses, and other
obligations as set forth therein; and
WHEREAS, Article VII, Chapter 26 of the City Code establishes the stormwater utility as
a utility service furnished by and an enterprise of the City; and
WHEREAS, City Council has adopted stormwater basin and City-wide master plans
recommending stormwater facilities necessary to provide for proper drainage and control of flood
and surface waters within the City; and
WHEREAS, in 1998, City Council adopted ordinance No. 168, 1998, determining that all
lands within the City benefit by the installation of such stormwater facilities; and
WHEREAS, existing stormwater rate payers have paid for the design, right of way, and
construction of stormwater facilities identified in the drainage basin master plans that will benefit
and be utilized by new development; and
WHEREAS, City Council has determined that new development should pay its
proportionate share of the costs of capital stormwater facilities in existence at the time of
development in the form of a stormwater plant investment fee as established by City Code Section
26-512 (“Stormwater PIF”); and
WHEREAS, City Code Section 26-511 requires that the City Manager review the rates and
parameters for the Stormwater PIF annually and present them to City Council for approval no less
frequently than biennially; and
WHEREAS, the City Manager and City staff have also recommended to the City Council
adjustment of the Stormwater PIF as set forth herein; and
WHEREAS, the Water Board considered the proposed Stormwater PIF adjustments for at
its meeting on September 19, 2019, and recommended approval of the proposed adjustments; and
WHEREAS, based on the foregoing, City Council desires to amend Chapter 26 of the City
Code to adjust the scope and rate of the Stormwater PIF as set forth herein.
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT
COLLINS as follows:
-2-
Section 1. That the City Council hereby makes any and all determinations and findings
contained in the recitals set forth above.
Section 2. That Section 26-512 of the Code of the City of Fort Collins is hereby
amended to read as follows:
Sec. 26-512. - Stormwater plant investment fees established.
. . .
(2) Plant investment fee base rate. The stormwater plant investment fee base rate is
hereby established as follows:
Per gross acre of area $9,447
. . .
Section 3. That the modifications set forth above shall be effective for all fees paid on
or after January 1, 2020.
Introduced, considered favorably on first reading, and ordered published this 5th day of
November, A.D. 2019, and to be presented for final passage on the 19th day of November, A.D.
2019.
__________________________________
Mayor
ATTEST:
_______________________________
City Clerk
Passed and adopted on final reading on the 19th day of November, A.D. 2019.
__________________________________
Mayor
ATTEST:
_______________________________
City Clerk
-1-
ORDINANCE NO. 134, 2019
OF THE COUNCIL OF THE CITY OF FORT COLLINS
AMENDING CHAPTER 26 OF THE CODE OF THE CITY OF FORT
COLLINS TO REVISE WATER PLANT INVESTMENT FEES
WHEREAS, the City Council is empowered and directed by Article XII, Section 6 of the
Charter of the City of Fort Collins, to by ordinance from time to time fix, establish, maintain, and
provide for the collection of such rates, fees or charges for water and for other utility services
furnished by the City as will produce revenues sufficient to pay the costs, expenses, and other
obligations as set forth therein; and
WHEREAS, Article III, Chapter 26 of the City Code establishes and sets forth the water
utility as a utility service furnished by and an enterprise of the City; and
WHEREAS, City Code Sections 26-120 and 26-128 provide for water plant investment
fees (“WPIFs”) to be based on and used for growth-related capital expansion costs of water supply,
storage, transmission, treatment and distribution, and administrative facilities that are reasonably
related to the overall costs of and required in providing water services to serve new development;
and
WHEREAS, City Code Section 26-120 further requires that the City Manager annually
review the parameters and rates of the WPIFs and also requires that the City Manager present such
fees to the City Council for approval no less frequently than biennially; and
WHEREAS, the City Manager and City staff have also recommended to the City Council
adjustment of the WPIFs, as set forth herein; and
WHEREAS, the Water Board considered the proposed WPIFs adjustments at its meeting
on September 19, 2019 and recommended approval of the proposed adjustments; and
WHEREAS, based on the foregoing, City Council desires to amend Chapter 26 of the City
Code to adjust the scope and rate of the WPIFs as set forth herein.
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT
COLLINS as follows:
Section 1. That the City Council hereby makes any and all determinations and findings
contained in the recitals set forth above.
Section 2. That Section 26-128 of the Code of the City of Fort Collins is hereby
amended to read as follows:
Sec. 26-128. Schedule C, water plant investment fees.
The water plant investment fee prescribed in § 26-120 shall be payable by users both inside
and outside of the City, as follows:
-2-
(1) Single-family residential buildings.
For a single-family residential lot greater than one-half (½) acre in
size, the lot size shall be deemed to be one-half (½) acre for the
purpose of this fee calculation. For each additional tap or meters larger
than three-fourths (¾) inch, the nonresidential rate shall apply.
a. For the first three-fourths-inch water tap or meter $730.00
b. For the first one-inch water tap or meter to accommodate
residential fire suppression systems based upon the criteria
established in the International Building Code as adopted and
amended pursuant to Chapter 5 of this Code.
$1,237.00
c. Plus, for each square foot of lot area $0.39
(2) Residential buildings of two (2) or more dwelling units
The fee will provide for one (1) tap per residential building and an
adequate number of additional taps to serve common irrigable areas,
if any. The number and size of taps shall be determined by the Utilities
Executive Director based upon the criteria established in the Uniform
Plumbing Code as amended pursuant to Chapter 5 of this Code.
a. For each residential building unit $550.00
b. Plus, for each square foot of lot area $0.29
(3) Mobile home parks
The size of the tap shall be determined by the Utilities Executive
Director based upon the criteria established in the Uniform Plumbing
Code as amended pursuant to Chapter 5 of this Code.
a. For each residential building unit $550.00
b. Plus, for each square foot of lot area $0.29
(4) Hotels, rooming houses, sororities, fraternities and similar uses.
The nonresidential rate shall apply.
(5) Nonresidential service
a. Service to all nonresidential taps, including, but not limited
to, taps for commercial and industrial service, shall be charged
according to the size of the meter pursuant to the following
schedule:
Meter Size (inches)
Non-
residential
Plant
Investment
Fee
-3-
¾ $8,790.00
1 $23,060.00
1½ $45,610.00
2 $78,820.00
b. The fee for all meters larger than two (2) inches shall be
calculated by multiplying the estimated peak daily demand by the
following charge per gallon, but shall not be less than the charge
for a two-inch meter.
$5.23
Section 3. That the modifications set forth above shall be effective for all fees paid on
or after January 1, 2020.
Introduced, considered favorably on first reading, and ordered published this 5th day of
November, A.D. 2019, and to be presented for final passage on the 19th day of November, A.D.
2019.
__________________________________
Mayor
ATTEST:
_______________________________
City Clerk
-4-
Passed and adopted on final reading on the 19th day of November, A.D. 2019.
__________________________________
Mayor
ATTEST:
_______________________________
City Clerk
-1-
ORDINANCE NO. 135, 2019
OF THE COUNCIL OF THE CITY OF FORT COLLINS
AMENDING CHAPTER 26 OF THE CODE OF THE CITY OF
FORT COLLINS TO REVISE THE WATER SUPPLY REQUIREMENTS FEES
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 water utility, as set forth therein; and
WHEREAS, the City owns and operates a water utility that provides treated water service
to customers with its service area; and
WHEREAS, through various water supply furnishing or development programs, the City
has historically required that persons desiring new or increased water service from the water utility,
among other things, furnish or otherwise provide to the City certain rights to use water or payments
of cash-in-lieu thereof in order to offset the impacts of the requested water service, which
requirements are currently set forth in Sections 26-129 and 26-146 through 26-150 of the Code of
the City of Fort Collins as the water supply requirements (“WSR”); and
WHEREAS, City staff has historically reviewed the WSRs periodically to ensure that the
rights to use water and cash payments received by the City are sufficient; and
WHEREAS, City staff has completed a review of the WSR and has determined that an
increase in the cash-in-lieu related excess water use surcharge rate is necessary to ensure that,
among other things, the impacts of new and increased water service are offset and that the water
utility has sufficient water supplies and infrastructure to serve customers of the water utility with
an adequate level of service.
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 26-129 of the Code of the City of Fort Collins is hereby
amended to read as follows:
Sec. 26-129. - Schedule D, miscellaneous fees and charges.
The following fees and service charges shall be paid by water users, whether inside or outside
the City limits:
(a) Connection fees and service charges shall be as set forth in Subsection 26-712(b).
-2-
(b) The fire hydrant fees and charges shall be as follows:
(1) For installation of meter Per meter $43.00
(2) For removal of meter Per meter $43.00
(3) For daily rental for meter and fittings Per meter $8.60
(4) For water service
Per 1,000
gallons
$13.36
A deposit may be required in the amount of the charges for the
anticipated water usage and rental.
(c) The fees and requirements for water supply shall be as follows:
(1) To satisfy Water Supply Requirement (WSR) with cash
payments
Per
acre-foot
of WSR
$21,500.00
(2) Excess water use surcharge assessed on commercial and
irrigation taps when water use is in excess of the applicable annual
allotment
Per 1,000
gallons
$10.09
(3) The annual water allotment, based on the minimum WSR shall be as
follows:
Meter Size (inches)
Annual
Allotment
(gallons/
year)
¾ 293,270
1 739,680
1½ 1,538,020
2 2,577,480
-3-
Above 2
325,851
gallons per
acre foot of
WSR
. . .
Section 3. That the modifications set forth above shall be effective for all fees paid on
or after January 1, 2020.
Introduced, considered favorably on first reading, and ordered published this 5th day of
November, A.D. 2019, and to be presented for final passage on the 19th day of November, A.D.
2019.
__________________________________
Mayor
ATTEST:
_______________________________
City Clerk
Passed and adopted on final reading on the 19th day of November, A.D. 2019.
__________________________________
Mayor
ATTEST:
_______________________________
City Clerk