HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 10/15/2019 - FIRST READING OF ORDINANCE NO. 124, 2019, AMENDINGAgenda Item 8
Item # 8 Page 1
AGENDA ITEM SUMMARY October 15, 2019
City Council
STAFF
Theresa Connor, Water Engineering Field Operations Mrg
Lisa Rosintoski, Utilities Deputy Director, Customer Connections
Cyril Vidergar, Legal
SUBJECT
First Reading of Ordinance No. 124, 2019, Amending Chapter 26 of the Code of the City of Fort Collins
Related to Water, Wastewater and Electric Rates, Fees, and Charges Applied Under an Income-Qualified
Assistance Program.
EXECUTIVE SUMMARY
The purpose of this item is to adopt a routine revision to Section 26-724 of City Code Chapter 26 pertaining to
Utility Services.
STAFF RECOMMENDATION
Staff recommends adoption of the Ordinance on First Reading.
BACKGROUND / DISCUSSION
After one year of administering IQAP, Utilities staff has identified the following routine changes needed to
achieve inclusivity for low-income customer participation and address certain barriers recognized by qualifying
low income customers during the original IQAP roll-out. These changes do not affect low income customer
rates; they focus only on qualification criteria and program description language.
The specific City Code changes focus on:
• Adding customer qualification for any one utility service; and
• Removing exception language to qualify customers residing in multi-family properties and accommodate
residential arrangements where customers are not able to hold utility water service accounts in their
names; and
• Adding language that allows enrollment into IQAP in both the preceding and current LEAP program year.
BOARD / COMMISSION RECOMMENDATION
Both the Fort Collins Utilities Water Board and Fort Collins Energy Board were provided a memo that was sent
to City Council on July 19, 2019, at their August board meetings providing details on the recommended
updates to IQAP.
ATTACHMENTS
1. IQAP Staff Update memo, July 19, 2019 (PDF)
Utilities
electric · stormwater · wastewater · water
222 Laporte Ave.
PO Box 580
Fort Collins, CO 80522-0580
970.212.2900
V/TDD: 711
utilities@fcgov.com
fcgov.com/utilities
M E M O R A N D U M
DATE: July 19, 2019
TO: Mayor Troxell and Councilmembers
FROM: Lisa Rosintoski, Utilities Deputy Director, Customer Connections
THROUGH: Darin Atteberry, City Manager
Jeff Mihelich, Deputy City Manager
Kevin R. Gertig, Utilities Executive Director
RE: Utilities Affordability Portfolio Update
The purpose of this memo is to provide an update on the Utilities Affordability Portfolio programs and the
Income Qualified Assistance Program results for year one.
Bottom Line
The Utilities Affordability Portfolio (UAP) was implemented to assist low-income Fort Collins Utilities
customers, that receive either water, wastewater or electric services, through a variety of programs. The
UAP consists of the following programs:
UAP Portfolio Direct Assistance Programs:
x Medical Assistance Program: Qualifying households that require medically necessary electrical equipment
or air conditioning may receive a discounted electric rate.
x Payment Assistance Fund: Households with a current past due notice may receive financial assistance once
per 12-month cycle on their electric and/or water bill.
x Income Qualified Assistance Program (IQAP): A 23% rate discount on electric, water and/or wastewater
charges for customers who receive LEAP. The program also facilitates efficiency and conservation
opportunities to further lower bills.
x Solar Affordability Program: Annual credit applied to qualifying households from aggregated credit
received by solar generation. 25 customers enrolled in 2018; more than 600 will receive credit at the end of
2019.
DocuSign Envelope ID: 3A555CF2-EAD2-4A17-ACE7-BBD1484CD045
ATTACHMENT 1
All annual results for 2019 are year-to-date and may have a delay in reporting time and program enrollment
periods may fall later in the year.
UAP Portfolio Indirect Assistance Programs:
x Larimer County Conservation Corp: Free home efficiency assessments and product installations through
Larimer County Conservation Corps. Equipment installed includes LED bulbs, sink aerators, showerheads
and toilets.
DocuSign Envelope ID: 3A555CF2-EAD2-4A17-ACE7-BBD1484CD045
x Various supporting partnerships: Colorado Affordable Residential Energy (CARE) Program,
Weatherization Assistance Program (WAP), Larimer Home Improvement Program (LHIP), Nonprofit Energy
Efficiency Program (NEEP)
Below is a summary of the outreach tactics, current portfolio participation stats, planned engagement
strategies and proposed revisions to the IQAP for the program’s second season.
Utilities Affordability Portfolio Summary:
Utilities staff has worked diligently with local service providers, regional partners and community members
to provide education, resources and utility bill assistance through several program offerings. Utilities staff
also leads a regional collaborative meeting with other municipalities, departments and stakeholders.
Programs have been designed to address previously identified barriers to increase participation, including
transportation, accessibility, convenience and access to trusted resources. A comprehensive communication,
outreach and engagement strategy is the cornerstone of residential awareness and participation and we strive
to “bring service offerings” to the residents through several tactics.
Outreach has included:
x City-owned media
x Earned media through community and statewide partnerships
x Paid media
x Community events
x Partnership outreach with nonprofits and businesses
x Social media marketing
DocuSign Envelope ID: 3A555CF2-EAD2-4A17-ACE7-BBD1484CD045
The UAP leverages statewide partnerships including Energy Outreach Colorado and Colorado’s Department
of Human Services. Local outreach includes:
x Senior living associations
x Mobile home parks
x Nonprofits (i.e. La Familia, United Way and Discover Goodwill)
x Senior Advisory Boards
x Energy and Water Boards
x Professional for Seniors network
Utilities staff also has worked with the City Manager’s Office and Sustainability Department, and multiple
City departments, to provide integrated resources, streamlined applications, and continues to work together
to consolidate eligibility criteria between City low-income programs.
Outreach type and reach:
x Bill insert/City News – 10 occurrences to ~49,000 customers each time
x Community events – 22 events/presentations
x Direct mail/email – 10 mailings/emails to ~3,000 customers
x General outreach – 16 general outreach awareness and promotions
x Lobby presence (222 Laporte) –17.75 staff hours over 2-month period
x Partnerships – 60 agencies/partners contacted
x Social media – 10 social media ads/promos reaching 16,176 people
x Utilities website updates, seasonal promotions
Customer Participation in 2018-2019
Direct Assistance: Funds are given directly to customers designed to provide bill payment relief.
Indirect Assistance includes materials or services designed to reduce use and/or increase energy or
water efficiency for the dwelling and has potential long-term Utility bill reduction for current and
future dwelling occupants.
*most current available data for 2019
Income Qualified Assistance Program Status
Average
Monthly
Participation
723
Total Utility Bill
Savings
$ 36,637
Average
Household
Savings
$ 50.71
DocuSign Envelope ID: 3A555CF2-EAD2-4A17-ACE7-BBD1484CD045
IQAP began in October 2018 and continuous enrollment in UAP programs, including the IQAP, remains in
effect. All participants are required to complete efficiency education hours. This season, 10% completed a
free home energy assessment through the Larimer County Conservation Corp. The re-enrollment period for
IQAP will begin in late summer 2019.
As part of the Citywide low-income benefits/rebates streamlining and consolidation efforts, Utilities staff
will be providing direct, targeted and centralized outreach in conjunction with other City departments in
August. We continue to increase outreach and visibility through increased partnership activity, community
education and targeted outreach strategies.
Staff will provide a detailed first year analysis in late 2019. Key activities for this year include:
x Update Minor Municipal Codes for consistency and enrollment equity with UAP administrative and
operational processes
x Provide enrollment opportunity to 1,200–2,000 residents identified as currently residing in income
qualified properties that meet the LEAP criteria/AMI limits
x Continue to explore, through the Low-Income Application Working Group, expanded eligibility
criteria (e.g., other City low-income and discount programs)
x Distribute Solar Affordability Program credits annually to currently enrolled IQAP participants
cc: Gretchen Stanford, Community Engagement Manager
Crystal Shafii, Senior Project Manager
Lisa Schroers, Affordability Portfolio Specialist
DocuSign Envelope ID: 3A555CF2-EAD2-4A17-ACE7-BBD1484CD045
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ORDINANCE NO. 124, 2019
OF THE COUNCIL OF THE CITY OF FORT COLLINS
AMENDING CHAPTER 26 OF THE CODE OF THE CITY OF FORT COLLINS
RELATED TO WATER, WASTEWATER AND ELECTRIC RATES, FEES, AND
CHARGES APPLIED UNDER AN INCOME-QUALIFIED ASSISTANCE PROGRAM
WHEREAS, the City Council is empowered and directed by Article XII, Section 6 of the
Charter of the City of Fort Collins, to by ordinance from time to time fix, establish, maintain and
provide for the collection of such rates, fees or charges for utility services furnished by the City
as will produce revenues sufficient to pay the costs, expenses, and other obligations as set forth
therein; and
WHEREAS, the rates, fees or charges for utility services set forth herein are necessary to
produce sufficient revenues to provide the utility services described herein; and
WHEREAS, the revenue from the rates, fees or charges for utility services set forth
herein shall be used to defray the costs of providing such utility services as required by the
Charter and the City Code; and
WHEREAS, as presented at the January 30, 2018, City Council work session, staff has
identified benefits available through an Income-Qualified Assistance Program (“IQAP”) that
improves adoption of conservation practices by qualifying low-income ratepayers who “opt-in”
to receive discounts that produce reasonable utility bill affordability; and
WHEREAS, based on direction provided by the City Council on January 30, 2018, staff
developed optimal program components, requirements, and utility service discounts for
residential water, wastewater, and electric services, as further set forth in Ordinance No. 054,
2018, as adopted by Council on May 1, 2018; and
WHEREAS, Articles III, IV, and VI of Chapter 26 of the City Code establish the water,
wastewater, and electric utilities as utility services furnished by and respective enterprises of the
City; 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 IQAP qualification and program practices are required to better
inform customers and align with current utility practices; and
WHEREAS, the Water Board considered proposed water and wastewater-related rate
adjustments for IQAP at its September 19, 2019, regular meeting, and recommended approval of
the proposed adjustments; and
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WHEREAS, the Energy Board considered proposed electric-related rate adjustments for
IQAP customers at its August 8, and September 12, 2019, regular meetings, and supported
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 electric and water-related rates, fees, and charges as
set forth herein.
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF
FORT COLLINS as follows:
Section 1. That the City Council hereby makes and adopts the determinations and
findings contained in the recitals set forth above.
Section 2. That Section 26-724 of the Code of the City of Fort Collins is hereby
amended to read as follows:
Sec. 26-724. - Residential income-qualified assistance program.
. . .
(b) Qualification. As set forth in this Section, a discount on certain components of City utility
service rates applied under this Chapter shall be available for qualified customers who satisfy the
following criteria:
(1) Maintain an account in the customer's name directly for City residential electric
and/or water and/or wastewater utility services, except that customers residing in multi-
family properties with more than two (2) dwelling units must hold water service accounts
in their own names to satisfy this criterion; and
(2) Have an annual household income that qualifies for the Larimer County Low-
Income Energy Assistance Program (LEAP); and
(3) One or more users at the account address apply for and enroll in LEAP during the
preceding or current LEAP program year (November 1 through April 30), and when
LEAP qualification is based on a member of the household other than the customer, the
customer produces proof of lawful presence in the U.S. in the valid forms accepted by
LEAP; and
(4) Exercise reasonable efforts to improve the water and energy efficiency of the
account premise, participate in Active Energy Management Education sessions, and meet
program milestones determined according to guidelines established by the Utilities
Executive Director, which guidelines may include procedures for disenrollment.
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(c) Applications. Applications for discounts under this Section must be submitted annually in
accordance with an administratively established schedule available from the Fort Collins
Utilities.
(d) Rates. The discounts applied to monthly base and volumetric rates for qualified IQAP
customers shall be as set forth in Sections 26-127(a), 26-280, 26-464(c), and 26-465(c) of this
Code on meter readings during the period of August 1 through July 31 (beginning October 1,
2018 and ending July 31, 2021).
(e) Appeal of decision. A decision that an applicant does not qualify to participate in this
program, except when the decision is based on lack of qualification for LEAP, may be appealed
to the Utilities Executive Director, who shall, prior to making his or her decision, and as he or
she deems appropriate, confer with one (1) or more financial experts in reviewing such appeal,
including LEAP officials.
Introduced, considered favorably on first reading, and ordered published this 15th day of
October, A.D. 2019, and to be presented for final passage on the 5th day of November, A.D.
2019.
__________________________________
Mayor
ATTEST:
_______________________________
City Clerk
Passed and adopted on final reading on the 5th day of November, A.D. 2019.
__________________________________
Mayor
ATTEST:
_______________________________
City Clerk