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HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 11/06/2018 - ITEMS RELATING TO 2019 UTILITY RATES FOR ELECTRICAgenda Item 15 Item # 15 Page 1 AGENDA ITEM SUMMARY November 6, 2018 City Council STAFF Randy Reuscher, Utility Rate Analyst Lance Smith, Utilities Strategic Finance Director Eric Potyondy, Legal Cyril Vidergar, Legal SUBJECT Items Relating to 2019 Utility Rates for Electric and Stormwater Rates, Fees and Charges. EXECUTIVE SUMMARY A. First Reading of Ordinance No. 134, 2018, Amending Chapter 26 of the Code of the City of Fort Collins to Revise Electric Rate, Fees and Charges. B. First Reading of Ordinance No. 135, 2018 Amending Chapter 26 of the Code of the City of Fort Collins to Revise Stormwater Rates, Fees and Charges. The purpose of this item is for Council to consider adjusting monthly charges for electric and storm water services in 2019. The revenue requirements to support the 2019 budget will require increasing monthly charges for electric service by 5.0% and stormwater service by 2.0%. Staff recommends no changes to water and wastewater utility rates. STAFF RECOMMENDATION Staff recommends adopting both Ordinances on First Reading. BACKGROUND / DISCUSSION The proposed electric rate increase consists of two components. The first component of 1.4% is necessary to offset the increase in wholesale energy prices. The second component of 3.6% is needed to increase operating revenues enough to offset operating expenses so that reductions in reserves stop and funds can be set aside for future capital improvements. More modest increases will be necessary over the coming decade to support wholesale energy increases, asset renewal, and operations. While no adjustment of the water and wastewater rates is recommended for this budget cycle, an increase to stormwater rates by 2.0% in 2019 is proposed. This increase is intended to moderately raise operating revenues to increase the debt capacity of the Enterprise in anticipation of significant debt being needed to meet the future capital improvements necessary to complete planned buildout of the stormwater infrastructure. Similar adjustments of less than 3% may be necessary over the coming decade depending on the timing and scale of the necessary capital investments. From a residential customer’s perspective, the net increase to their 4-service utility bill is expected to be 2.2% or, averaged across each utility service, this is $3.76 per month more than they are paying in 2018. The table below shows the bill breakdown for residential customers only. See 2019 Proposed Electric Rate Changes of service for a reflection of rate increases for all classes. Agenda Item 15 Item # 15 Page 2 Utility 2018 2019 $ Change % Change Electric $ 71.96 $ 75.41 $ 3.45 4.8% Water $ 47.88 $ 47.88 $ - 0.0% Wastewater $ 34.45 $ 34.45 $ - 0.0% Stormwater $ 15.42 $ 15.73 $ 0.31 2.0% Total Average Bill $ 169.71 $ 173.47 $ 3.76 2.2% Average Residential Monthly Bill Fort Collins Utilities Rate Strategy and Smoothing At the beginning of the 2019-2020 Budgeting For Outcomes process, revenues are forecasted for the coming two years. These forecasted revenues provide the funding for the Enterprise Funds providing the utility services. Any rate adjustments need to be considered in these forecasts. As rate increases are periodically necessary to meet operational costs and needs, an objective set of criteria for determining these rate adjustments is necessary for financial modeling. This set of criteria is based on the objectives outlined in the overall rate strategy and factor in satisfaction of appropriate maintenance and repairs to the utility systems. The rate strategy outlined below is intended to maintain the financial health and resiliency of the utility Enterprise Funds as determined by the bond rating agencies criteria for assessing new debt issuances by municipal utilities. The strategy seeks to meet the revenue and reserve funding requirements of each utility through gradual rate increases. It is included in the long-term financial modeling for each utility and serves as the basis of the rate projections presented to Council since 2016. The following criteria objectively determine when, why and how much rates should be adjusted to maintain the financial health of each utility: 1. Adjust electric rates sufficient to meet Platte River Power Authority wholesale rate adjustments. 2. If the previous 3 years have averaged negative operating income, raise rates next year to the lesser of 5% or the level sufficient to offset the average operating loss. 3. If debt coverage is less than 2.0, increase rates the lesser of 5% and a level sufficient to raise the debt coverage ratio to 2.1 the next year. 4. If the Available Reserve fund balance is projected to be negative at the end of any year, increase rates the lesser of 5% and an amount sufficient to increase reserves to the minimum required reserve. 5. Add up all of the previous criteria-driven rate adjustments and take the lesser of 5% and the sum as the recommended rate adjustment. By limiting the annual increase to no more than 5.0% in any one utility, the average customer should not see an increase in their total utility bill by more than 5% in one year. This constraint results in some “smoothing” or spreading out of larger rate increases over 2 or more years. Moreover, because the total utility bill is considered, adjustments in one utility may be less than needed in order to smooth out the overall bill impact. As proposed in this agenda item, for example, the necessary electric rate increase is being smoothed out over 3 years. Electric Rate Increase The rate strategy above consists of 5 steps before looking at the overall utility bill impact for any additional smoothing of the proposed electric rate increase. Agenda Item 15 Item # 15 Page 3 Step 1 – Purchased Power Adjustment Platte River Power Authority is expected to increase the Tariff 1 purchase price by 2.0% annually through 2027. As there is no rate stabilization fund, these increases need to be recovered through retail rate increases each year. Purchased power costs represent 72% of the operating expenses in 2017 which results in a need for a 1.4% retail rate adjustment to cover this wholesale increase. Both the summer and non-summer seasons, and the energy and demand components will increase equally. Below is a table of the current 2018 component charges, along with the proposed 2019 component charges. 2018 Proposed 2019 % Change Energy Summer 0.04284 / kWh 0.04370 / kWh 2.0% Non-summer 0.04109 / kWh 0.04191 / kWh 2.0% Demand Summer 11.56 / kW 11.79 / kW 2.0% Non-summer 8.81 / kW 8.99 / kW 2.0% Tariff 7 charges from PRPA for long-term renewable energy purchases are not proposed to change in 2019. Step 2 – Operating Income Each Enterprise Fund is expected to generate enough operating income to make itself self-sufficient and sustainable. Bond underwriters expect that operating expenses are being more than fully covered by operating revenues. The excess operating income allows for sustainable renewal of the infrastructure. In addition, the City’s Charter requires rates, fees and charges for each utility “as will provide sufficient revenues to pay the cost of operation and maintenance . . .”, including payment of a PILOT, principal and interest on outstanding bonds, provision of adequate working capital for day-to- day operations, and maintenance of adequate reserves for capital repair, replacement and improvement of the utility (Art. XII, section 6). Since 2007 this Fund has utilized reserves to offset operating losses. ($20,000,000) $0 $20,000,000 $40,000,000 $60,000,000 $80,000,000 $100,000,000 $120,000,000 $140,000,000 $160,000,000 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Light & Power Fund Operating Income (2007-2017) OPERATING INCOME Total Operating Revenue Total Operating Expenses Agenda Item 15 Item # 15 Page 4 While this was an intentional draw down of reserves based on previous City Council direction, over the last 3 Budgeting For Outcomes cycles (2013-2018) $41.7M has been appropriated from Reserves. The reserve balance decreased from a peak of $56.5M in 2014 to $33.5M at the end of 2017. The table below steps through the reserve balance to show that $11.4M was available for future appropriations at the end of 2017. $M Reserve Balance 12/31/2017 $33.5 LESS Minimum Required Reserves ($8.4) LESS Appropriations Prior to 12/31/2017 ($9.2) LESS 2018 Budget Use of Reserves ($4.5) Reserves Available 12/31/2017 $11.4 LESS 2018 Appropriations to date ($8.4) LESS 2019-20 Budget Use of Reserves ($0.3) PLUS 2018 Unanticipated Revenues $2.5 Reserves Available 10/15/2018 $5.2 In addition to the $4.5M use of reserves to support the 2018 budget, an additional $8.4M has been appropriated from these Reserves for bond defeasance and capital investments through Ordinances in 2018. This leaves a balance of $5.2M available for future appropriations. The 2019-20 biennial budget will only require the appropriation of $339,000 in 2019 with $317,000 being added back to reserves in 2020. The use of reserves is no longer tenable, making it necessary to increase operating income in this budget cycle through these rate adjustments. Based on the financial model, a 5.0% increase in operating revenues in 2019 is necessary to offset the 3-year average operating loss of $4.3M and provide a small operating margin of less than 2%. The 5.0% limit on a single year rate increase means smoothing over multiple years is necessary. The resulting increase in operating revenues in 2019, which will remain within the City’s electric distribution utility, along with additional future adjustments, will result in positive operating income being generated for this Enterprise within the next few years. Agenda Item 15 Item # 15 Page 5 ($20,000,000) $0 $20,000,000 $40,000,000 $60,000,000 $80,000,000 $100,000,000 $120,000,000 $140,000,000 $160,000,000 $180,000,000 $200,000,000 2007 2009 2011 2013 2015 2017 2019 2021 2023 2025 Light & Power Fund Operating Income (2007-2026) OPERATING INCOME Total Operating Revenue Total Operating Expenses Step 3 – Debt Coverage The rating agencies know that investors want as little risk as possible for a given level of return on their investment. The debt coverage ratio provides a level of confidence that sufficient income will be generated to ensure that the bondholders are repaid as scheduled. In this case, there is no outstanding debt expected to be repaid through electric operating revenues, so this criterion is not requiring any additional rate adjustment. Step 4 – Capital Investments The long-term viability of the revenue streams dedicated to bond repayment is also critical to bondholders and the financial health of the Enterprise. Generating operating income provides a sustainable revenue stream for asset renewal over time. The rating agencies also want to know that the utility has a capital improvement plan, a supporting financial plan and that rate adjustments are part of the plan, as well as seeing adequate investment in the system assets. Because the currently proposed rate increase is intended to support the 2019-20 budget cycle, the amount of capital being requested in these two years of $10M / year is reflected in the revenue requirement rather than the $16M / year described in the CIP. So, capital investment is not driving any increase above what has already been identified. Step 5 – Rate Smoothing Over Time The 5.0% limit on an annual rate increase for each utility will require smoothing anticipated rate increases over a few years. Agenda Item 15 Item # 15 Page 6 Criteria 2019 2020 2021 1.4% 0.8% 1. PRPA wholesale energy costs 1.4% 1.4% 1.4% 2. 3 yr ave Operating Income < 0 5.0% 3.0% TBD 3. Debt Coverage Ratio < 2.0 TBD 4. Available Reserves less Capital Need < 0 TBD Sum of Above 6.4% 5.8% 5. Lesser of 5.0% or the sum of above 5.0% 5.0% TBD Increase Carried Forward 1.4% 0.8% TBD TBD - to be determined in the 2021-22 Budget cycle The financial model forecast shows that modest annual rate adjustments of 1-3% annually may be sufficient once this increase is smoothed out over the next 3 years. 0% 1% 2% 3% 4% 5% 6% 7% 8% 9% 10% 2007 2009 2011 2013 2015 2017 2019 2021 2023 2025 2027 % Rate Increase Electric Monthly Rates Purchased Power Distribution System Energy Services Electric Cost of Service The cost of service model was updated in 2018 in keeping with the two-year period to avoid large swings between rate classes in any given year. The rate class percentage adjustments are shown in the graph below. The horizontal line represents an average retail increase of 5.00%. Variations by rate class are due to multiple factors, including changes in total consumption (either up or down), changes in customer counts, changes in load factors, and are dependent on specific costs and allocations to each rate class. As the graphs shows, no one rate class varies, either higher or lower, by more than one percent from the average of 5.0% increase. Agenda Item 15 Item # 15 Page 7 To maintain the direct connection between the wholesale charges from Platte River to the retail energy and coincident demand rates, those components will be increased the same 2.0% as the wholesale increase. Because these components of the bill are larger than the distribution and fixed charges, it is necessary to increase those components by more than 5% to achieve the overall revenue requirement and the average bill increase of 5.0%. The rating agencies consider how much of the fixed costs of a utility are recovered through fixed charges. A higher percentage of the fixed costs being recovered through fixed charges creates more revenue stability and therefore more confidence that adequate revenues will be generated in the future to meet debt obligations. Net-Metering - Community Solar Projects In addition to adjusting TOD rates for 2019, this Ordinance temporarily authorizes the Utilities Executive Director to extend 2018 tiered solar generation bill credits for community solar customers until December 31, 2018. This short-term authorization will allow the Utilities Executive Director to delay application of TOD bill credit calculations as may be needed to comply with terms in power purchase contracts between the City and community solar project developers. Addition of LED Floodlight Charges Code already accommodates floodlight charges for mercury vapor and high-pressure sodium bulbs. To accommodate the installation of LED lights as an option for area floodlights, staff had added two new charges to accommodate fifty-four (54) watt and seventy-two (72) watt fixtures. Stormwater Rate Increase Step 1 – Operating Income Operating income is strong in this utility, so no adjustment is necessary to satisfy the operational, maintenance and reserve-funding requirements of the Charter. Agenda Item 15 Item # 15 Page 8 Step 2 – Debt Coverage Ratio The debt coverage ratio continues to grow as existing debts are retired. Again, no adjustment is necessary. Step 3 – Capital Investments The 2% stormwater increase for 2019 is intended to raise operating revenues modestly to increase the debt capacity of the Enterprise. This is in anticipation of significant debt being needed for the capital improvements necessary to complete the initial buildout of the stormwater infrastructure. Similar, modest adjustments of less than 3% may be necessary over the coming decade depending on the timing and scale of the necessary capital investments and to manage reserve balances. Step 4 – Rate Smoothing Over Time Criteria 2019 1. 3 yr ave Operating Income < 0 2. Debt Coverage Ratio < 2.0 4. Available Reserves less Capital Need < 0 2.0% Sum of Above 2.0% 5. Lesser of 5.0% or the sum of above 2.0% No additional smoothing is necessary, nor is it expected over the coming decade. Modest rate increases may be necessary to cover higher costs as the operating margin decreases gradually over the decade. 0% 1% 2% 3% 4% 5% 6% 7% 8% 9% 10% 2007 2009 2011 2013 2015 2017 2019 2021 2023 2025 2027 % Rate Increase Stormwater Monthly Rate Changes Low-Income Support Programs Agenda Item 15 Item # 15 Page 9 Utilities manages a robust Utilities Affordability Portfolio along with the Income Qualified Assistance Program to support at-risk populations. Staff has worked with local service providers, regional partners, and subject matter experts to identify participation barriers for low income customers, and ensure the providers have the information and engagement they need to direct low-income customers to our programs and services. Utilities has implemented engagement and communication strategies to address barriers and help residents more easily participate in our low-income programs. A comprehensive communication, outreach and engagement strategy is the cornerstone of resident awareness and participation. Please see the attached City Council memo summaries on programs and results. Costs of these programs have been considered in connection with the proposed rate increases. CITY FINANCIAL IMPACTS Electric Rate Ordinance – In 2019 the proposed 5.0% increase would add an estimated $6.5M to operating revenues which will partially address the ongoing operating loss and decrease reliance on reserves. The attached one-page budget summary for the Light and Power Enterprise Fund (Attachment 7) shows the budget assuming this proposed 5.0% rate increase is adopted. Because reserves have been drawn down already any reduction in the proposed 5.0% rate increase would need to be offset by a corresponding amount in the accepted budget offers. Stormwater Rate Ordinance – In 2019 the proposed 2.0% increase would add an estimated $0.3M to operating revenues. In the near term, this modest rate increase will allow the utility to build up reserves to strengthen the utility’s financial position ahead of anticipated debt issuances. The attached one-page budget summary for the Stormwater Enterprise Fund (Attachment 7) shows a contribution to reserves in both years. In the long term this will increase the debt capacity necessary to finance the remaining stormwater infrastructure. BOARD / COMMISSION RECOMMENDATION Energy Board: The Board reviewed the rate proposal at its regular meeting on October 11, 2018. Chairperson Michell moved that the Energy Board support a 5% rate increase, as proposed by staff, plus an additional 0.63% to support the optional CAP offer package, allowing the City to meet its 2020 CAP goals. Furthermore, the Energy Board does not support cutting funding for capital infrastructure to support the optional CAP offer package. The motion passed unanimously. Water Board: The Board reviewed the rate proposal at its regular meeting on October 18, 2018. Board Member Michael Brown moved for Water Board to recommend City Council approve the 2019 rate changes for stormwater monthly fees. The motion passed unanimously. PUBLIC OUTREACH Key Accounts has been communicating with customers about the 5.0% rate increases being proposed in 2019 and 2020. A memo was requested by the Chamber of Commerce before First Reading in lieu of a presentation due to the lack of availability in the Chambers schedule until late November when City staff will provide an update on several utility issues including these rate increases. Agenda Item 15 Item # 15 Page 10 ATTACHMENTS 1. Energy Board Minutes October 11, 2018 (Draft) (PDF) 2. Water Board Minutes (Draft) (PDF) 3. Fund Summaries - Electric and Stormwater Only (PDF) 4. Memo - Utilities Affordability Portfolio and IQAP update (PDF) 5. Utilities Affordability Portfolio & Programs Memo (PDF) 6. Utilities Affordability Portfolio Goals Memo (PDF) 7. Utilities Affordability Portfolio Outreach Memo (PDF) 8. PowerPoint Presentation (PDF) Energy Board Minutes ABRIDGED - DRAFT October 11, 2018 Energy Board Minutes ABRIDGED - DRAFT October 11, 2018 Fort Collins Utilities Energy Board Minutes ABRIDGED - DRAFT Thursday, October 11, 2018 Energy Board Chairperson Nick Michell, 970-215-9235 City Council Liaison Ross Cunniff, 970-420-7398 Energy Board Vice Chairperson Amanda Shores, 408-391-0062 Staff Liaison Tim McCollough, 970-305-1069 Roll Call Board Present: Chairperson Nick Michell, Vice Chairperson Amanda Shores, Alan Braslau, Stacey Baumgarn, Bill Becker, Jeremy Giovando, Greg Behm, John Fassler, Krishna Karnamadakala Late Arrivals: Board Absent: Others Present Staff: Tim McCollough, Christie Fredrickson, Lindsay Ex, John Phelan, Lance Smith Platte River Power Authority: Paul Davis, Alyssa Clemson-Roberts Members of the Public: Budgeting for Outcomes Tim McCollough, Deputy Director Utilities Light & Power (attachments available upon request) Council has had three budget work sessions and two public hearings, and there is an additional work session scheduled for next week. As Mr. Smith noted in his earlier presentation, there is a recommended 5% rate increase to support the City Manager’s Recommended Budget. Mr. McCollough said Council does support many of the programs within the Climate Action Plan optional budget package that was discussed at last month’s Energy Board Meeting, but they have asked staff if there is a way to continue those programs within the already proposed 5% rate increase. Mr. McCollough said that would mean adjusting other offers already on the table, such as reducing some of Light & Power’s capital needs, or finding additional revenue sources. Staff doesn’t have additional details at this time, but Mr. McCollough wanted the board to be informed about the request from Council. Vice Chairperson Shores asked why Council does not want to exceed a 5% rate increase, because an additional 0.63% would likely be a fraction of a dollar on an average household utility bill. Mr. McCollough said this meeting didn’t provide an opportunity for staff to discuss with City Council, but rather for City Council to provide feedback on the information they were presented and request a follow up from staff. Board member Braslau said he believes it is a mistake to make budget choices that allows the City to miss it’s 2020 CAP goal; he also said the recommended budget seems inconsistent with the recent decision to commit to 100% Renewable Energy. Vice Chairperson Shores said relaying information in percentages is ineffective, because at the end of the day most people only care about the ATTACHMENT 1 Energy Board Minutes ABRIDGED - DRAFT October 11, 2018 Energy Board Minutes ABRIDGED - DRAFT October 11, 2018 cost of their monthly bill, and perhaps it would be more effective to explain how much 0.63% translates to monetarily and what services that rate increase would be providing to the community. Chairperson Michell said in the past there have been several great efficiency programs marketed, just like some of the CAP programs that are currently on the chopping block, but by February all the funding has run out and they expect customers to come back the following year. He believes Council should either fund or not fund efficiency programs like that so there isn’t such a drastic swing between funding cycles. Mr. Davis said the Platte River Power Authority efficiency budget grew by 20% this year, and though it is somewhat complicated, he does not believe some of the larger efficiency programs, such as Efficiency Works Business, are in any danger of running out of funding. Mr. Smith said it’s important to add context: In the 2019/2020 budget, staff is proposing $18.3 million in renewable energy and green initiatives, and the question now is do we invest $19.6 million in those initiatives. He wanted the board to remember it’s not as if the City isn’t doing anything, and Platte River is also contributing an additional $4 million. It’s Mr. Smith’s opinion the City will not even be able to use all $18 million currently allotted, because in recent history there have always been funds left over in that budget line. Mr. Smith believes it would be wiser to invest more money into capital. Mr. McCollough reiterates support for Mr. Smith’s statements and added that deferring capital investments comes with its own set of concerning problems. Chairperson Michell moved that the Energy Board support a 5% rate increase, as proposed by staff, plus an additional 0.63% to support the optional CAP offer package, allowing the City to meet its 2020 CAP goals. Furthermore, the Energy Board does not support cutting funding for capital infrastructure to support the optional CAP offer package. Board member Behm seconded the motion. Discussion: Board members asked Mr. Smith what the overall financial impact would be to an average residential bill with a 5.63% rate increase and the assumed Time of Day usage reductions. Mr. Smith estimated it would be approximately $3.38 more per month. Board member Baumgarn asked if voting on this motion is as impactful as the Board hopes, since they voted on a very similar motion at last month’s meeting. He wondered if the Board should consider another avenue of communication such as a memo. Vote on the Motion: It passed unanimously, 9-0. Board members discussed attending the October 16 City Council meeting, so they can ensure their opinions are heard in addition to their motions and votes. Excerpt from Unapproved DRAFT MINUTES WATER BOARD REGULAR MEETING October 18, 2018, 5:30 p.m. 222 Laporte Avenue, Colorado River Community Room 10/18/2018 – Excerpt from Unapproved DRAFT MINUTES Page 1 o Proposal to Increase Stormwater Rates for 2019/Plan Investment Fee Update (Attachments available upon request)  Presentation Summary: Utility Rate Analyst Randy Reuscher provided an overview. Staff proposes a 2% increase to stormwater monthly charges for 2019. The ordinance will be discussed as part of the upcoming City Council agendas on November 6 and 20, 2018 for first and second readings. No changes are proposed for water or wastewater monthly charges. Staff also proposes changes to water, wastewater, and stormwater plant investment fees (PIF) for 2019. These ordinances are scheduled to be included for discussion at the December 4 and 18 City Council meetings. Mr. Reuscher summarized the proposals and showed how the rate changes will affect the average residential monthly bill. Board members commented on and inquired about various related topics including Stormwater revenue; reserves; general fund; the Stormwater Fund graph and the desire to show what reserves would be without the rate increases, and how they affect future capital projects; the need for marketing staff to explain to the public that these rate increases are paying for capital projects; how much infrastructure is paid by new development fees (the fees are intended to cover upfront costs; monthly fees cover the remainder). o Board Member Brown moved for Water Board to recommend City Council approve the 2019 rate changes for stormwater monthly fees and plant investment fees for water, wastewater, and stormwater, as proposed by staff. o Board Member Tarry seconded the motion o Vote on the Motion: It passed unanimously, 8-0. ATTACHMENT 2 LIGHT & POWER FUND ######## Actual 2015 Actual 2016 Actual 2017 Budget 2018 Budget 2019 Budget 2020 2019 2020 REVENUE PROJECTION Operating Revenue $117,450,191 $125,072,991 $128,730,192 $130,530,000 $135,573,000 $140,395,000 % Change 6.5% 2.9% 1.4% 3.9% 3.6% PIF / Contributions $4,435,202 $6,363,132 $5,490,709 $3,130,000 $3,230,000 $3,230,000 % Change 43.5% -13.7% -43.0% 3.2% 0.0% All Other Revenues $2,691,707 $2,586,182 $2,785,561 $2,202,456 $2,069,686 $1,844,020 % Change -3.9% 7.7% -20.9% -6.0% -10.9% Total Revenues $124,577,100 $134,022,305 $137,006,462 $135,862,456 $140,872,686 $145,469,020 Revenues $140,872,686 $145,469,020 % Change 7.6% 2.2% -0.8% 3.7% 3.3% Reserves $338,918 $141,211,604 Actual 2015 Actual 2016 Actual 2017 Budget 2018 Budget 2019 Budget 2020 CURRENT OFFERS Offer Result Title 90.1 Utilities: Light & Power - Payments and Transfers $15,967,002 $17,660,398 $17,180,271 $18,493,708 $16,963,228 $17,315,588 % Change 10.6% -2.7% 7.6% -8.3% 2.1% 8.2 ECON Utilities: Light & Power - Core Operations $9,042,578 $10,435,697 $10,053,255 $10,131,766 $10,490,292 $10,783,807 % Change 15.4% -3.7% 0.8% 3.5% 2.8% 8.3 ECON Utilities: Light & Power - Ongoing Capital System Additions $9,394,986 $11,689,760 $5,817,270 $5,096,234 $5,355,077 $5,427,972 % Change 24.4% -50.2% -12.4% 5.1% 1.4% 8.4 ECON Utilities - Light and Power Purchase Power $82,164,556 $87,276,576 $89,413,232 $89,500,000 $94,441,000 $97,817,000 % Change 6.2% 2.4% 0.1% 5.5% 3.6% 8.5 ECON Equipment Replacement - Utilities: Light & Power - Vehicles and Equipment $414,351 $510,427 $392,577 $480,000 $372,000 $522,000 % Change 23.2% -23.1% 22.3% -22.5% 40.3% 9.80 ENVIR Utilities: Light & Power - Energy Services $4,401,391 $4,959,714 $4,539,648 $5,317,950 $4,394,748 $4,439,633 % Change 12.7% -8.5% 17.1% -17.4% 1.0% 9.81 ENVIR Utilities: Light & Power - Residential & Commercial Solar Rebates $1,211,801 $799,190 $825,680 $710,000 $500,000 $500,000 % Change -34.0% 3.3% -14.0% -29.6% 0.0% 9.82 ENVIR Utilities: Light & Power - Core Renewable Energy $2,249,596 $2,564,237 $2,654,070 $3,874,500 $3,428,300 $3,671,500 % Change 14.0% 3.5% 46.0% -11.5% 7.1% 9.83 ENVIR Utilities: Light & Power - Demand Response $567,069 $1,000,549 $586,908 $620,400 $629,460 $638,663 % Change 76.4% -41.3% 5.7% 1.5% 1.5% 39.2 HPG City Manager's Office $108,145 $111,390 % Change 3.0% 63.1 HPG General Legal Services $86,407 $89,000 % Change 3.0% 87.1 SAFE City Managers Office: Office of Emergency Management $12,000 $13,000 % Change 8.3% Subtotal Current Offers $125,413,331 $136,896,548 $131,462,912 $134,224,558 $136,780,657 $141,329,553 $136,780,657 $141,329,553 % Change 9.2% -4.0% 2.1% 1.9% 3.3% Less Current $4,430,947 $4,139,467 CAPITAL PROJECTS Offer Result Title 8.6 ECON Capital Replacement - Utilities: Light & Power - Substation Capital Upgrades $649,000 $624,000 % Change 8.7 ECON Capital Replacement - Utilities: Light & Power - Electric Distribution Transformer Replacement $577,500 $922,600 % Change 8.8 ECON Capital Replacement - Utilities: Light & Power - Attrition Based LED Streetlight Conversion $341,360 $351,600 % Change 8.9 ECON Capital Replacement - Utilities: Light & Power - System Cable Replacement $500,000 $500,000 % Change 12.1 CULTU Utilities Capital Project: Art in Public Places $14,800 $14,076 % Change Subtotal Capital Projects $4,370,564 $2,082,660 $2,412,276 $2,082,660 $2,412,276 % Change -52.3% 15.8% TOTAL WITH CAPITAL PROJECTS $125,413,331 $136,896,548 $131,462,912 $138,595,122 $138,863,317 $143,741,829 Less Capital $2,348,287 $1,727,191 ENHANCEMENTS Offer Result Title 8.12 ECON ENHANCEMENT CAPITAL - Utilities: Light & Power - New Feeder Capacity - Circuit 724 to Serve North College Area $980,000 00 8.15 ECON ENHANCEMENT CAPITAL - Utilities: Light & Power - New Feeder Capacity - Circuit 236 to Serve Drake & Lemay Area $500,000 00 8.25 ECON ENHANCEMENT CAPITAL - Utilities: Light & Power - Supervisory Control Operations Center Remodel $950,000 00 10.15 HPG ENHANCEMENT: 1.0 FTE Utilities (Repurpose): Customer Service & Administration - Data Enhancement ($109,213) ($113,019) 00 10.19 HPG ENHANCEMENT CAPITAL - Utilities: Asset Register and Work Order Management System $435,000 00 10.23 HPG ENHANCEMENT: CAPITAL - Utilities: 700 Wood Street Building/Facilities $160,000 $170,000 00 43.12 ENVIR ENHANCEMENT: 2030 Climate Action and Energy Policy Update –Optimizing Policy, Targets and Strategies (50%) $20,000 $40,000 00 9.90 ENVIR ENHANCEMENT: Utilities: Light & Power - Energy Efficiency $237,500 $237,500 00 9.92 ENVIR ENHANCEMENT: Utilities: Light & Power - Non-Residential Solar Rebates $125,000 $125,000 00 8.13 ECON ENHANCEMENT CAPITAL - Utilities: Light & Power - New Feeder Capacity - Circuit 734 to Serve Downtown Area $590,000 11 8.14 ECON ENHANCEMENT CAPITAL - Utilities: Light & Power - New Feeder Capacity - Circuit 322 to Serve East Prospect & Mulberry Area $820,000 11 8.16 ECON ENHANCEMENT CAPITAL - Utilities: Light & Power - New Feeder Capacity - Circuit 576B to Serve West Harmony Area $457,600 11 8.17 ECON ENHANCEMENT CAPITAL - Utilities: Light & Power - New Feeder Capacity - Circuit 314 to Serve East Prospect Area $700,000 11 8.18 ECON ENHANCEMENT CAPITAL - Utilities: Light & Power - New Duct Bank - County Road 5, Prospect to Mulberry $1,800,000 11 8.22 ECON ENHANCEMENT CAPITAL - Utilities: Light & Power - Arterial & Collector Street LED Streetlight Conversion $773,640 $220,400 11 8.23 ECON ENHANCEMENT CAPITAL - Utilities: Light & Power - Cable Waste Reduction $1,447,983 11 8.24 ECON ENHANCEMENT - Utilities: Light & Power - Mobile Contact Voltage Survey $59,470 $190,960 11 8.26 ECON ENHANCEMENT - Utilities: Light & Power - Automated Vehicle/Crew Location Operational Tech Upgrade $55,000 $20,000 11 8.27 ECON ENHANCEMENT CAPITAL - Utilities: Light & Power - Electric Distribution Training Field $200,000 11 8.29 ECON ENHANCEMENT CAPITAL- Utilities: Light & Power - Overhead to Underground Conversions $516,000 $500,000 11 9.91 ENVIR ENHANCEMENT: Utilities: Light & Power - Cold Weather Pump Demonstration $150,000 $150,000 11 9.94 ENVIR ENHANCEMENT: Utilities: Light & Power - Bring Your Own Thermostat (BYOT) $30,000 $30,000 11 9.95 ENVIR ENHANCEMENT: Utilities: Light & Power - Battery Storage Demonstration $100,000 $100,000 11 9.93 ENVIR ENHANCEMENT: Utilities: Light & Power - Solar Power Purchase Program (SP3) $200,000 11 9.96 ENVIR ENHANCEMENT: 1.0 FTE Conversion to Classified - Energy Code Compliance Specialist - Utilities: Light & Power (50%) $2,135 $2,198 11 87.2 SAFE ENHANCEMENT: OEM $2,300 $2,350 11 Subtotal Enhancements $3,354,870 $8,074,815 $4,802,989 $2,348,287 $1,409,481 TOTAL WITH ENHANCEMENTS $125,413,331 $136,896,548 $131,462,912 $141,949,992 $146,938,132 $148,544,818 Less Enhancements $0 $317,710 % Change 9.2% -4.0% 8.0% 3.5% 1.1% Available Reserves REVENUE PROJECTION LESS ALL OFFERS ($836,231) ($2,874,243) $5,543,550 ($6,087,536) ($6,065,446) ($3,075,798) $338,918 $0 $317,710 WITHDRAWN OFFERS Offer Result Title 8.11 Econ ENHANCEMENT CAPITAL - Utilities: Light & Power - New Feeder Capacity - Circuit 936 to Serve South Shields Area (Withd $1,280,000 8.19 Econ ENHANCEMENT CAPITAL - Utilities: Light & Power - New Duct Bank - Overland Trail, Drake to Prospect (Hughes Stadium) $1,950,000 8.20 Econ ENHANCEMENT CAPITAL - Utilities: Light & Power - New Duct Bank - Mountain Vista Drive - (Montava) (Withdrawn) $2,200,000 8.21 Econ ENHANCEMENT CAPITAL - Utilities: Light & Power - New Duct Bank - Timberline to I-25 (Withdrawn) $3,770,000 8.28 Econ ENHANCEMENT 1.0 FTE - Utilities: Light & Power - Substation Specialist (Withdrawn) $87,788 $90,943 $3,317,788 $6,060,943 STORMWATER FUND ####### Actual 2015 Actual 2016 Actual 2017 Budget 2018 Budget 2019 Budget 2020 2019 2020 REVENUE PROJECTION Operating Revenue $15,035,237 $15,620,342 $16,755,272 $16,210,000 $17,170,000 $17,510,000 % Change 3.9% 7.3% -3.3% 5.9% 2.0% PIF / Contributions $1,276,385 $1,301,236 $1,078,414 $800,000 $680,000 $570,000 % Change 1.9% -17.1% -25.8% -15.0% -16.2% All Other Revenues $342,365 $216,332 $567,149 $415,305 $438,325 $457,383 % Change -36.8% 162.2% -26.8% 5.5% 4.3% Total Revenues $16,653,987 $17,137,910 $18,400,835 $17,425,305 $18,288,325 $18,537,383 Revenues $18,288,325 $18,537,383 % Change 2.9% 7.4% -5.3% 5.0% 1.4% Less Contribution to Reserves ($1,000,000) ($1,000,000) Available for BFO $17,288,325 $17,537,383 Actual 2015 Actual 2016 Actual 2017 Budget 2018 Budget 2019 Budget 2020 + $500K from NECCO closeout CURRENT OFFERS $500,000 Offer Result Title 9.100 ENVIR Utilities: Stormwater - Household Hazardous Waste & Spill Response Services $118,286 $110,587 $122,192 $139,060 $157,000 $157,000 $17,788,325 % Change -6.5% 10.5% 13.8% 12.9% 0.0% 11.2 SAFE Utilities: Stormwater - Core Operations $2,809,365 $3,118,677 $3,358,585 $3,461,280 $3,763,198 $3,887,830 % Change 11.0% 7.7% 3.1% 8.7% 3.3% 11.3 SAFE Capital Replacement - Utilities: Stormwater - Minor Capital $278,352 $266,843 $280,916 $101,767 $383,232 $533,232 % Change -4.1% 5.3% -63.8% 276.6% 39.1% 90.4 Utilities: Stormwater - Payments and Transfers $9,623,198 $10,234,652 $10,012,425 $7,590,227 $7,511,987 $6,072,936 % Change 6.4% -2.2% -24.2% -1.0% -19.2% 9.101 ENVIR REDUCTION - Utilities: Stormwater - Household Hazardous Waste Events ($27,400) ($27,400) NOT ACCEPTED % Change 0.0% 9.102 ENVIR REDUCTION - Utilities: Community Spill Response ($32,400) ($32,400) % Change 0.0% 63.1 HPG General Legal Services (Stormwater portion) $13,543 $13,950 % Change 3.0% 87.1 SAFE City Managers Office: Office of Emergency Management (Stormwater portion) $38,000 $39,000 % Change 2.6% Subtotal Current Offers $12,829,201 $13,730,759 $13,774,118 $11,292,334 $11,834,563 $10,671,548 11,834,563 10,671,548 % Change 7.0% 0.3% -18.0% 4.8% -9.8% Less Current $5,953,762 $6,865,835 CAPITAL PROJECTS Offer Result Title 11.4 SAFE Ongoing Capital - Utilities: Stormwater - Stream Rehabilitation Program $1,400,000 $801,000 $1,408,900 $0 $0 11.5 SAFE $1,500,000 $1,400,000 $1,500,000 $0 $0 Subtotal $2,900,000 $2,201,000 $2,908,900 % Change -24.1% 32.2% 11.6 SAFE Capital Replacement - Utilities: Stormwater - Basin Master Plan Updates $450,000 $450,000 $1 $1 % Change 0.0% 11.7 SAFE Capital Replacement - Utilities: Stormwater - Developer Repayments $300,000 $100,000 $0 $0 % Change -66.7% 12.1 CULTU Utilities Capital Project: Art in Public Places $7,611 $25,462 - - % Change 234.5% Other Capital Work Completed in 2017 % Change Subtotal Capital Projects $2,900,000 $2,958,611 $3,484,362 $2,958,611 $3,484,362 % Change 2.0% 17.8% TOTAL WITH CAPITAL PROJECTS 12,829,201 13,730,759 13,774,118 14,192,334 14,793,174 14,155,910 Less Capital $2,995,151 $3,381,473 % Change 7.0% 0.3% 3.0% 4.2% -4.3% ENHANCEMENTS Offer Result Title Subtotal Enhancements $4,299,501 $2,182,544 $3,260,225 $2,024,471 $3,123,946 TOTAL WITH ENHANCEMENTS 12,829,201 13,730,759 13,774,118 18,491,835 16,975,718 17,416,135.12 Less Enhancements $970,680 $257,527 % Change 7.0% 0.3% 34.3% -8.2% 2.6% Available Reserves REVENUE PROJECTION LESS ALL OFFERS $3,824,786 $3,407,151 $4,626,717 ($1,066,530) $312,607 $121,248 $1,970,680 $3,228,207 Withdrawn Offers 9.35 ENVIR ENHANCEMENT: 1.0 FTE Utilities: Water/Wastewater/Stormwater Utilities Planner/Scheduler - WITHDRAWN $29,585 $34,248 9.103 ENVIR ENHANCEMENT CAPITAL - Utilities: Pollution Prevention/Good Housekeeping Training Facility - WITHDRAWN $100,000 $0 11.18 Safe ENHANCEMENT: 1.0 FTE Utilities: Stormwater - Civil Engineer II (Stormwater Master Planning) -WITHDRAWN $129,854 $128,697 $259,439 $162,945 Electric Criteria 2019 2020 2021 1.4% 0.8% 1. PRPA wholesale energy costs 1.4% 1.4% 1.4% 2. 3 yr ave Operating Income < 0 5.0% 3.0% TBD 3. Debt Coverage Ratio < 2.0 TBD 4. Available Reserves less Capital Need < 0 TBD Sum of Above 6.4% 5.8% 5. Lesser of 5.0% or the sum of above 5.0% 5.0% TBD Increase Carried Forward 1.4% 0.8% TBD TBD - to be determined in the 2021-22 Budget cycle Stormwater Criteria 2019 2020 1. 3 yr ave Operating Income < 0 2. Debt Coverage Ratio < 2.0 4. Available Reserves less Capital Need < 0 2.0% 2.0% Sum of Above 2.0% 2.0% 5. Lesser of 5.0% or the sum of above 2.0% 2.0% Fund 501 Reserves $M Reserve Balance 12/31/2017 $33.5 LESS Minimum Required Reserves ($8.4) LESS Appropriations Prior to 12/31/2017 ($9.2) LESS 2018 Budget Use of Reserves ($4.5) Reserves Available 12/31/2017 $11.4 LESS 2018 Appropriations to date ($8.4) LESS 2019-20 Budget Use of Reserves ($0.3) Reserves Available 10/15/2018 $2.7 DATE: September 27, 2018 TO: Mayor Troxell and Councilmembers FROM: Lisa Rosintoski, Deputy Director- Utilities Customer Connections THROUGH: Darin Atteberry, City Manager Jeff Mihelich, Deputy City Manager Kevin R. Gertig, Utilities Executive Director RE: Utilities Affordability Portfolio and Income Qualified Assistance Program Update Bottom Line: In 2018, Utilities staff has worked with local service providers, regional partners, and subject matter experts to identify participation barriers for low income customers. Most pervasive barriers are transportation, accessibility, convenience, and access to trusted resources. Utilities has implemented engagement and communication strategies to address these barriers and help residents more easily participate in our low-income programs. A comprehensive communication, outreach and engagement strategy is the cornerstone of resident awareness and participation that is more robust based on the Time-of-Day (TOD) rate, effective October 1, 2018. Participation 2018  Direct Assistance: Dollars provided directly to customers in the form of bill payment assistance. Includes Payment Assistance Fund, Energy Outreach Colorado/Payment Assistance Fund matching, Solar Affordability Program, and Medical Assistance Program. The Solar Affordability Program has sunset with the introduction of the Income Qualified Assistance Program. Accruing solar credits will be used to assist low-income customers in early 2019.  Indirect Assistance: Dollars provided indirectly to customers in the form of efficient materials installation or services that increase energy and water efficiency. Includes Larimer County Conservation Corp, Nonprofit Energy Efficiency Program (NEEP), and Colorado’s Affordable Energy Efficiency Program (CARE). DocuSign Envelope ID: F4E9F08D-4988-4ADA-8377-119606478D07 9/26/2018 9/26/2018 9/26/2018 9/27/2018 ATTACHMENT 4 2018 Portfolio Status Updates 2016 2017 2018 ALL Affordability Program Assistance Dollars Total $204,483 $275,054 $353,370 ALL Affordability Program Assistance Household Total 877 1,100 1,534 ALL Affordability Program Assistance Average Dollars/Household $233 $250 $230 Direct Assistance Dollars Total $120,269 $147,574 $137,213 Direct Assistance Households* 499 661 556 Direct Assistance Average Dollars/Household $241 $223 $247 Indirect Assistance Household Total $84,214 $127,480 $216,157 Indirect Assistance Customers** 378 439 978 Indirect Assistance Average Dollars/Household $223 $290 $221 *IQAP data not included due to 10/1/18 start date **includes Larimer County Conservation Corp, Energy Outreach Colorado Efficiency Projects (i.e. Nonprofit Energy Efficiency Program), Colorado Energy Assistance Program Utilities Affordability Program Participation Savings per household/year Total Investment *1,126 applications sent to qualified LEAP participants; 74% enrollment rate Larimer County Conservation Corp $100,000 Income Qualified Assistance Program (IQAP)* Medical Assistance Program Payment Assistance Fund Colorado’s Affordable Energy Efficiency Program (CARE) EOC Efficiency Programs (NEEP/MFU) Solar Affordability Program $244 829 131 325 53 500 19 425 23% rate reduction $127, 19% Utility bill reduction $251 16% gas, 8% electric reduction Engagement and Outreach Plans Increase outreach and visibility of Utility Affordability programs through strengthened partnerships, and increased community education and outreach.  Provide UAP information at community-centered locations, i.e. Senior Center and Northside Aztlan  Provide information at income-qualified residential facilities where residents are billed separately and would be able to participate in program offerings (i.e. Woodbridge Senior Living, etc)  Work with multifamily properties, tenants, and other identified groups to provide behavior change guidance, educational opportunities, and inform of available programs and services  Offer UAP materials and website information in Spanish  Send IQAP application through direct mail and via email communication to qualified LEAP residents  Community-wide awareness of programs through Utilities bill inserts, social media/Facebook, partners  Leverage existing community events to engage low-income customers  Provide 1:1 interaction in Utilities Administration Building lobby during LEAP application period  Maintain seasonally appropriate outreach campaigns to provide ongoing engagement strategies 2018-2019 Strategic Partnerships  Collaborate with low-income service providers such as La Familia-The Family Center and Catholic Charities to provide UAP materials and customer education resulting in simple, streamlined application processes  Partner with Discover Goodwill’s Mission in Motion (mobile office) for LEAP sign-up days to provide a convenient, customer focused application process  Collaborate with other key stakeholders including Social Sustainability Department, Senior Advisory Board, and Energy Outreach Colorado to effectively reach low-income customers  Partner with the Professional for Seniors group and attend the December Children in Need event  Collaborate with Finance, Sustainability and Recreation to explore cross-promotion opportunities  Work with cross-City team to explore consolidated low-income application options  Integrate messaging and outreach with Sustainability and Neighborhood Services where possible DocuSign Envelope ID: F4E9F08D-4988-4ADA-8377-119606478D07  Partner with Housing Catalyst and PSD to leverage non-LEAP income-qualifying programs; explore other income-qualification platforms to maximize our reach and impact to target audience in the future  Communicate with Boards, Commissions and impacted stakeholder/trade organizations  Ongoing and expanded service provider engagement o Regular email communications o Host annual gathering to share information o Attendance at appropriate community group meetings o Offering educational resources and support o Facilitating meetings or presentations o Event presence and materials distribution o Neighborhood canvassing CC: Cyril Vidergar, Assistant City Attorney Randy Reuscher, Utility Rate Analyst Gretchen Stanford, Community Engagement Manager Crystal Shafii, Program Coordinator Supervisor DocuSign Envelope ID: F4E9F08D-4988-4ADA-8377-119606478D07 ATTACHMENT 5 ATTACHMENT 6 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 DATE: October 9, 2018 TO: Mayor Troxell and Councilmembers FROM: Lisa Rosintoski, Deputy Director, Utilities Customer Connections THROUGH: Darin Atteberry, City Manager Jeff Mihelich, Deputy City Manager Kevin Gertig, Utilities Executive Director RE: Leadership Planning Team Request - Utilities Affordability Portfolio Outreach This memo is in response to the October 8 Leadership Planning Team request on how customers are informed about available programs within the Utilities Affordability Portfolio. Below are the identified outreach tactics and associated metrics for 2018. Bottom Line: The Utilities Affordability Portfolio outreach is an annual campaign to educate customers regarding the programs that provide direct and indirect financial assistance and education for at risk populations. The UAP campaigns achieve increased donations to the Payment Assistance Fund, and increased program participation year over year. 2018 Outreach Overview Outreach Type Description Reach Bill Insert/City News Various print pieces sent through Utility bills to all customers 10 individual pieces/touches to ~49,000 customers each time Community Events Relevant community-attended events 22 events/presentations Direct Mail/Email Targeted to: LEAP participants, MAP/SAP customers, PAF donors >10 individual targeted communication to ~3000 customers General Outreach IVR message, distributed posters, external newsletters, press release, etc >16 general community outreach awareness and promotion Lobby Presence Bilingual staff member/volunteer hosted info booth at 222 Laporte Ave 17.75 staff hours over 2-month period Partnerships Agencies and partner communications in person and via email >60 agencies/partners contacted Social Media Comprehensive social media (Facebook)campaigns September through April >10 social media ads/promos reaching 16,176 people Utilities Website UAP web pages up year-round updates, seasonal promotions cc: Gretchen Stanford, Community Engagement Manager Crystal Shafii, Program Coordinator Supervisor DocuSign Envelope ID: 03E32C0D-8E53-4831-BCD6-B491499CAA11    2019 Kevin R. Gertig, Utilities Executive Director Lance Smith, Utilities Strategic Finance Director ATTACHMENT 8 11.06.2018 2019 Rate Summary 2 UTILITY 2019 PROPOSED INCREASE NOTES ELECTRIC 5% Varies by rate class WATER 0% WASTEWATER 0% STORMWATER 2% Same for all rate classes ELECTRIC RATES 3 Light & Power Fund Operating Income 4 ($20,000,000) $0 $20,000,000 $40,000,000 $60,000,000 $80,000,000 $100,000,000 $120,000,000 $140,000,000 $160,000,000 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Light & Power Fund Operating Income (2007-2017) OPERATING INCOME Total Operating Revenue Total Operating Expenses Financial Criteria for Rate Adjustments 5 Criteria 2019 2020 2021 1. PRPA wholesale energy costs 1.4% 1.4% 1.4% Criteria 2019 2020 2021 1. PRPA wholesale energy costs 1.4% 1.4% 1.4% 2. 3 yr ave Operating Income < 0 5.0% 3.0% TBD Criteria 2019 2020 2021 1. PRPA wholesale energy costs 1.4% 1.4% 1.4% 2. 3 yr ave Operating Income < 0 5.0% 3.0% TBD 3. Debt Coverage Ratio < 2.0 TBD Criteria 2019 2020 2021 1. PRPA wholesale energy costs 1.4% 1.4% 1.4% 2. 3 yr ave Operating Income < 0 5.0% 3.0% TBD 3. Debt Coverage Ratio < 2.0 TBD 4. Available Reserves less Capital Need < 0 TBD Criteria 2019 2020 2021 1.4% 0.8% 1. PRPA wholesale energy costs 1.4% 1.4% 1.4% 2. 3 yr ave Operating Income < 0 5.0% 3.0% TBD 3. Debt Coverage Ratio < 2.0 TBD 4. Available Reserves less Capital Need < 0 TBD Sum of Above 6.4% 5.8% 5. Lesser of 5.0% or the sum of above 5.0% 5.0% TBD Increase Carried Forward 1.4% 0.8% TBD TBD - to be determined in the 2021-22 Budget cycle Electric Rate History / Forecast 0% 1% 2% 3% 4% 5% 6% 7% 8% 9% 10% 2007 2009 2011 2013 2015 2017 2019 2021 2023 2025 2027 % Rate Increase Electric Monthly Rates Purchased Power Distribution System Energy Services 2019 Cost of Service STORMWATER RATES 8 Financial Criteria for Rate Adjustments 9 Criteria 2019 2020 1. 3 yr ave. Operating Income < $0 - - 3. Debt Coverage Ratio < 2.0 - - 4. Available Reserves less Capital Need < 0 * 2.0% 2.0% Sum of Above 2.0% 2.0% 5. Lesser of 5.0% or the sum of above 2.0% 2.0% * This is an estimate in lieu of the capital improvement plan being prioritized. It will be necessary to increase revenues to support the significant capital needs for this utility 10 Stormwater Rate History / Forecast 0% 1% 2% 3% 4% 5% 6% 7% 8% 9% 10% 2007 2009 2011 2013 2015 2017 2019 2021 2023 2025 2027 % Rate Increase Stormwater Monthly Rate Changes UTILITY COST COMPARISON 11 2018 Comparison - Residential 12 Electric Water Wastewater Stormwater Total 2018 2018 2018 2018 2018 Longmont $ 65.25 $ 45.03 $ 32.71 $ 13.05 $ 156.04 Greeley $ 79.38 $ 54.45 $ 19.74 $ 10.92 $ 164.49 Loveland $ 73.41 $ 44.84 $ 30.65 $ 16.24 $ 165.13 Ft Collins $ 71.96 $ 47.88 $ 34.45 $ 15.42 $ 169.71 Boulder $ 79.38 $ 44.08 $ 35.09 $ 15.61 $ 174.16 Colorado Springs $ 87.13 $ 85.91 $ 28.63 N/A $ 201.66 2019 Rate Adjustments in Neighboring Communities 13 ELECTRIC WATER WASTEWATER STORMWATER OVERALL OVERALL OVERALL OVERALL Loveland 5.00% 9.00% 11.00% 8.30% Longmont 0.00% 9.00% 2.00% 5.00% Boulder 7.00% 5.00% 5.00% Ft Collins 5.00% 0.00% 0.00% 2.00% RESIDENTIAL BILL IMPACTS 14 Proposed 2019 Average Residential Bill Utility 2018 2019 $ Change % Change Electric $ 71.96 $ 75.41 $ 3.45 4.8% Water $ 47.88 $ 47.88 $ - 0.0% Wastewater $ 34.45 $ 34.45 $ - 0.0% Stormwater $ 15.42 $ 15.73 $ 0.31 2.0% Total Average Bill $ 169.71 $ 173.47 $ 3.76 2.2% Average Residential Monthly Bill Fort Collins Utilities 16 Light & Power Fund Reserves 17 $M Reserve Balance 12/31/2017 $33.5 LESS Minimum Required Reserves ($8.4) LESS Appropriations Prior to 12/31/2017 ($9.2) LESS 2018 Budget Use of Reserves ($4.5) Reserves Available 12/31/2017 $11.4 LESS 2018 Appropriations to date ($8.4) LESS 2019-20 Budget Use of Reserves ($0.3) PLUS 2018 Unanticipated Revenues $2.5 Reserves Available 10/15/2018 $5.2 Light & Power Fund CIP 18 $0 $5,000,000 $10,000,000 $15,000,000 $20,000,000 $25,000,000 $30,000,000 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 Annual Capital Investment Light & Power Fund Capital Improvement Plan New Capacity Fiber Optics Improvements Substation Improvements Operational Technology Distribution System Improvements Annexations Service Area - wide Historical Ave Capital 2007-16 Ave Capital Investment 2017-26 Previous CIP Estimated 2017-2026 Capital Investment Utility Affordability Portfolio 19 Colorado Affordable Residential Energy (Deep Retrofits) Income- Qualified Assistance Program (Discounted Rate) Medical Assistance Program (Long-term Assistance) Payment Assistance Fund (Short-term Assistance) Water and Energy Program (Basic Retrofits) -1- ORDINANCE NO. 134, 2018 OF THE COUNCIL OF THE CITY OF FORT COLLINS AMENDING CHAPTER 26 OF THE CODE OF THE CITY OF FORT COLLINS TO REVISE ELECTRIC RATES, FEES, AND CHARGES AND UPDATING RELATED PROVISIONS 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, 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, revenues 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, the City purchases bulk wholesale electric power from Platte River Power Authority (“PRPA”) pursuant to an Amended Contract for Supply of Electric Power and Energy, dated September 1, 2010; and WHEREAS, PRPA will increase the City’s wholesale cost of power approximately 2.0% in 2019; and WHEREAS, Utilities staff has determined the increased wholesale power cost will require an average 1.4% retail rate increase and increased local distribution costs will require an additional average 3.6% rate increase, for a total City retail electric rate increase in 2019 of 5.0% in order to remain consistent with Article XII, Section 6, of the City Charter; and WHEREAS, the proposed rate increase will vary based on the cost of service to each customer class; and WHEREAS, on November 21, 2017, City Council adopted Ordinance No. 155, 2017, transitioning electric service rates from tiered to a “time-of-day” (“TOD”) based structure for all meter readings on or after October 1, 2018; and WHEREAS, in addition to adjusting electric rates, Utilities staff has identified formatting and maintenance updates to Chapter 26 of the City Code necessary to improve the clarity with which electric rates are stated; and WHEREAS, on September 18, 2018, City Council adopted Ordinance No. 116, 2018, extending tiered-based electric rates for customers enrolled in manual-read metering service as of August 31, 2018, while all other customers transitioned to TOD on October 1, 2018; and -2- WHEREAS, staff recommends continuing tiered-based electric rates for manual-read metering service customers until completion of upgrades to metering equipment necessary to serve those customers on TOD rates, while all other customers will transition to updated TOD rates on January 1, 2019; and WHEREAS, staff recommends City Council authorize the Utilities Executive Director to extend until December 31, 2018, tiered solar generation bill credits and delay implementing TOD credit rates for community solar projects where power purchase agreements with operators allow the City to change the solar credit only once annually, as extending tiered credits for these projects will avoid potential contract compliance issues; and WHEREAS, the Energy Board considered the proposed electric rates and methods of application at its September 13 and October 11, 2018 regular meetings, and provided recommendations of approval of proposed rate sets to City Council; and WHEREAS, the City Manager and staff have recommended to the City Council the following TOD-based electric rate adjustments and City Code rate language clarifications for all billings issued with meter readings on or after January 1, 2019; and WHEREAS, based on the foregoing, it is the desire of the City Council to amend Chapter 26 of the City Code to revise the electric rates, fees and charges. 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 Sections 26-464 (c), (d), (f), (p), (r) and (s) of the Code of the City of Fort Collins are hereby amended to read as follows: Sec. 26-464. Residential energy service, schedule R. . . . (c) Monthly rate. (1) Tiered Rate - Limited-Term. The monthly rates for this schedule shall be the sum of the following charges, applied to all remote-read meter readings on or after January 1, 2018, through September 30, 2018. Customers enrolled in manual meter reading services as of August 31, 2018 shall remain on the tiered rates below until the date meter upgrades necessary to serve such customers on time-of- day rates are completed, as which time the time-of-day rates under subsection (2) of this Section shall apply. a. Fixed Charge Per account $5.81 -3- $6.40 b. Distribution facilities charge Per kWh $0.0257 $0.0283 c. Energy and demand charge 1. Summer. For billings based on meter readings during the months of June, July and August, provided that no customer shall be billed more than three (3) full billing cycles at the summer rate. a) Tier 1 - for the first five hundred (500) kilowatt hours per month b) Tier 2 - for the next five hundred (500) kilowatt hours per month c) Tier 3 - for all additional kilowatt hours per month Per kWh $0.0647 $0.0660 Per kWh $0.0823 $0.0839 Per kWh $0.1173 $0.1196 2. Non-summer. For billings based on meter readings during the months of January through May and September through December. a) Tier 1 - for the first five hundred (500) kilowatt hours per month, per kWh b) Tier 2 - for the next five hundred (500) kilowatt hours per month, per kWh c) Tier 3 - for all additional kilowatt hours per month, per kWh Per kWh $0.0595 $0.0607 Per kWh $0.0638 $0.0651 Per kWh $0.0729 $0.0744 ... (2) Time-of-day. The monthly rates for this schedule shall be the sum of the following charges, applied to all remote-read meter readingsenergy consumption on or after October January 1, 20189. Customers enrolled in manual meter reading services as of August 31, 2018 shall be billed based on time-of-day rates as of the date meter upgrades necessary to serve such customers on time-of-day rates are completed. a. Fixed Charge Per account $5.81 $6.40 b. Distribution facilities charge Per kWh $0.0197 $0.0217 c. Energy and demand charge 1. Summer. For billings based on consumption during the months of May, June, July, August, and September (a) On-Peak (Mon-Fri, 2 pm to 7 pm, excluding holidays) Per kWh -4- (b) Off-Peak Per kWh $0.0428 $0.0437 2. Non-summer. For billings based on consumption during the months of January through April and October through December. (a) On-Peak (Mon-Fri, 5 pm to 9 pm, excluding holidays) (b) Off-Peak Per kWh $0.1788 $0.1824 Per kWh $0.0411 $0.0419 e. Energy efficiency tier charge, per kilowatt hour for total consumption over 700 kWh in a billing month (regardless of on-peak or off-peak) Per kWh $0.0166 $0.0183 ... (d) Medical assistance program. . . . (3) a. Tiered. The discounted monthly rates for customers with electrical durable medical equipment only shall be the sum of the following charges, applied to all meter readings on or after January 1, 2018, through September 30, 2018: 1. Fixed Charge Per account $5.81 2. Distribution facilities charge Per kWh $0.0257 3. Energy and demand charge a) Summer. For billings based on meter readings during the months of June, July and August, provided that no customer shall be billed more than three (3) full billing cycles at the summer rate. (i) Tier 1 - for the first five hundred (500) kilowatt hours per month (ii) Tier 2 - for the next five hundred (500) kilowatt hours per month (iii) Tier 3 - for all additional kilowatt hours per month Per kWh $0.0363 Per kWh $0.0823 Per kWh $0.1173 b) Non-summer. For billings based on meter readings during the months of January through May and September through December. (i) Tier 1 - for the first five hundred (500) kilowatt hours per month, per kWh (ii) Tier 2 - for the next five hundred (500) kilowatt hours per month, per kWh (iii) Tier 3 - for all additional kilowatt hours Per kWh $0.0325 Per kWh $0.0638 Per kWh $0.0733 -5- per month, per kWh 4. Payment in lieu of taxes (PILOT) and franchise. A charge based on all monthly service charges billed pursuant to this Section 6 percent b. Durable Medical Equipment (DME) Time-of-useday. The discounted monthly rates for customers with electrical durable medical equipment only shall be the sum of the following charges, applied to all meter readingsenergy consumption on or after October January 1, 20189: 1. Fixed Charge Per account $5.81 $6.40 2. Distribution facilities charge Per kWh $0.0197 $0.0217 3. Energy and demand charge a) Summer. For billings based on consumption during the months of May, June, July, August, and September (i) On-Peak (Mon-Fri, 2 pm to 7 pm, excluding holidays) (ii) Off-Peak Per kWh $0.1411 $0.1439 Per kWh $0.0300 $0.0306 b) Non-summer. For billings based on consumption during the months of January through April and October through December. (i) On-Peak (Mon-Fri, 5 pm to 9 pm, excluding holidays) (ii) Off-Peak Per kWh $0.1252 $0.1277 Per kWh $0.0288 $0.0294 4. Energy efficiency tier charge, per kilowatt hour for total consumption over 700 kWh in a billing month (regardless of on-peak or off-peak) Per kWh $0.0166 $0.0183 ... (4) a. Tiered. The discounted monthly rates for customers with medical needs requiring air conditioning only shall be the sum of the following charges, applied to all meter readings on or after January 1, 2018, through September 30, 2018: 1. Fixed Charge Per account $5.81 2. Distribution facilities charge Per kWh $0.0257 3. Energy and demand charge -6- a) Summer. For billings based on meter readings during the months of June, July and August, and provided that no customer shall be billed more than three (3) full billing cycles at the summer rate. (i) Tier 1 - for the first five hundred (500) kilowatt hours per month (ii) Tier 2 - for the next five hundred (500) kilowatt hours per month (iii) Tier 3 - for all additional kilowatt hours per month Per kWh $0.0358 Per kWh $0.0454 Per kWh $0.1173 b) Non-summer. For billings based on meter readings during the months of January through May and September through December. (i) Tier 1 - for the first five hundred (500) kilowatt hours per month, per kWh (ii) Tier 2 - for the next five hundred (500) kilowatt hours per month, per kWh (iii) Tier 3 - for all additional kilowatt hours per month, per kWh Per kWh $0.0595 Per kWh $0.0638 Per kWh $0.0733 4. Payment in lieu of taxes (PILOT) and franchise. A charge of all monthly service charges billed pursuant to this Section 6 percent b. Air Conditioning (A/C) Time-of-useday. The discounted monthly rates for customers with medical needs requiring air conditioning only shall be the sum of the following charges, applied to all meter readingsenergy consumption on or after October January 1, 20189: 1. Fixed Charge Per account $5.81 $6.40 2. Distribution facilities charge Per kWh $0.0197 $0.0217 3. Energy and demand charge a) Summer. For billings based on consumption during the months of May, June, July, August, and September (i) On-Peak (Mon-Fri, 2 pm to 7 pm, excluding holidays) (ii) Off-Peak Per kWh $0.0428 $0.0437 Per kWh $0.0428 $0.0437 b) Non-summer. For billings based on consumption during the months of January through April and October through December. -7- (i) On-Peak (Mon-Fri, 5 pm to 9 pm, excluding holidays) (ii)Off-Peak Per kWh $0.1788 $0.1824 Per kWh $0.0411 $0.0419 4. Energy efficiency tier charge, per kilowatt hour for total consumption over 700 kWh in a billing month (regardless of on-peak or off-peak) Per kWh $0.0166 $0.0183 ... (5) a. Tiered. The discounted monthly rates for customers with electrical durable medical equipment and medical needs requiring air conditioning shall be the sum of the following charges, applied to all meter readings on or after January 1, 2018, through September 30, 2018: 1. Fixed Charge Per account $5.81 2. Distribution facilities charge Per kWh $0.0257 3. Energy and demand charge a) Summer. For billings based on meter readings during the months of June, July and August, provided that no customer shall be billed more than three (3) full billing cycles at the summer rate. (i) Tier 1 - for the first five hundred (500) kilowatt hours per month (ii) Tier 2 - for the next five hundred (500) kilowatt hours per month (iii) Tier 3 - for all additional kilowatt hours per month Per kWh $0.0234 Per kWh $0.0298 Per kWh $0.1173 b) Non-summer. For billings based on meter readings during the months of January through May and September through December. (i) Tier 1 - for the first five hundred (500) kilowatt hours per month, per kWh (ii) Tier 2 - for the next five hundred (500) kilowatt hours per month, per kWh (iii) Tier 3 - for all additional kilowatt hours per month, per kWh Per kWh $0.0325 Per kWh $0.0638 Per kWh $0.0733 4. Payment in lieu of taxes (PILOT) and franchise. A charge based on all monthly service charges billed pursuant to this Section 6 percent -8- b. Durable Medical Equipment (DME) & A/C Time-of-use-day. The discounted monthly rates for customers with electrical durable medical equipment and medical needs requiring air conditioning shall be the sum of the following charges, applied to all meter readingsenergy consumption on or after October January 1, 20189: 1. Fixed Charge Per account $5.81 $6.40 2. Distribution facilities charge Per kWh $0.0197 $0.0217 3. Energy and demand charge a) Summer. For billings based on consumption during the months of May, June, July, August, and September (i) On-Peak (Mon-Fri, 2 pm to 7 pm, excluding holidays) (ii) Off-Peak Per kWh $0.0428 $0.0437 Per kWh $0.0300 $0.0306 b) Non-summer. For billings based on consumption during the months of January through April and October through December. (i) On-Peak (Mon-Fri, 5 pm to 9 pm, excluding holidays) (ii) Off-Peak Per kWh $0.1252 $0.1277 Per kWh $0.0288 $0.0294 4. Energy efficiency tier charge, per kilowatt hour for total consumption over 700 kWh in a billing month (regardless of on-peak or off-peak) Per kWh $0.0166 $0.0183 ... . . . (f) Excess capacity charge. The monthly capacity charge kilowatt set forth in this Subsection (f) may be added to the above charges for service to intermittent loads in accordance with the provisions of the Electric Service Standards. Per kW $2.10 $2.21 . . . (p) Net metering. -9- … (5) a. Tiered Rate - Limited Term. The customer-generator's consumption of energy from the utility and production of energy that flows into the utility's distribution system shall be measured on a monthly basis. The energy from the utility consumed by the customer-generator shall be billed at the applicable rate as outlined in Subsection (c) of this Section. The energy produced by the customer- generator shall be credited to the customer monthly as follows, applied to all remotemanual-read meter readings on or after January 1, 20198, through September 30, 2018. Customers enrolled in manual meter reading services as of August 31, 2018 shall remain on the tiered rates below until the date meter upgrades necessary to serve such customers on time-of-day rates are completed, at which time the time-of-day rates under subsection (b.) of this Section shall apply. 1. Distribution facilities credit Per kWh $0.0257 $0.0283 2. Energy and demand credit Per kWh $0.0647 $0.0660 b. Time-of-day. For customer-generators on a "time-of-day" (TOD) rate, consumption of energy from the utility and production of energy that flows into the utility's distribution system shall be measured on a monthly basis. The energy from the utility consumed by the customer-generator shall be billed at the applicable rates under Subsection (c) of this Section. The energy produced by the customer-generator shall be credited to the customer monthly as follows, applied to all meter readingsgeneration returned to the grid on or after October January 1, 20189. Customers enrolled in manual meter reading services as of August 31, 2018 shall be credited based on time-of-day rates as of the date meter upgrades necessary to serve such customers on time-of-day rates are completed. 1. Distribution facilities credit Per kWh $0.0197 $0.0217 2. Energy and demand credit – For billings based on generation during the months of May, June, July, August and September a) On-Peak (Mon-Fri, 2 pm to 7 pm, excluding holidays) Per kWh $0.2015 $0.2055 b) Off-Peak Per kWh $0.0428 $0.0437 3. Energy and demand credit – For billings based on generation during the months of January through April and October through December a) On-Peak (Mon-Fri, 5 pm to 9 pm, excluding holidays) Per kWh $0.1788 $0.1824 -10- b) Off-Peak Per kWh $0.0411 $0.0419 . . . (r) Net metering—community solar projects. . . . (3) a. Tiered Rate - Limited Term. Both the customer’s consumption of energy from Fort Collins Utilitiesthe utility and interest in the production of energy that flows into Fort Collins Utilities'the utilities’ distribution system shall be measured on a monthly basis. The energy from Fort Collins Utilities consumed by the customer shall be billed at the applicable rate as outlined in Subsections (c) of this Section. The method used to measure energy produced and issue credits under this Section shall be the same for subscriber-owned facilities and dedicated program-managed facilities. The energy produced by the customer's portion of the qualifying facility shall be credited to the customer monthly as follows, applied to all remote-read meter readings on or after January 1, 20198, through September 30, 2018. Customers enrolled in manual meter reading services as of August 31, 2018 shall remain on the tiered rates below until the date meter upgrades necessary to serve such customers on time-of-day rates are completed, at which time the time-of-day rates under subsection (b.)of this Section shall apply. 1. Distribution facilities credit Per kWh $0.0128 $0.0141 2. Energy and demand credit Per kWh $0.0647 $0.0660 b. Time-of-day. For customer-generators on a "time-of-day" (TOD) rate, the customer’s consumption of energy from Fort Collins Utilitiesthe utility and interest in the production of energy that flows into Fort Collins Utilities'the utilities’ distribution system shall be measured on a monthly basis. The energy from the utility consumed by the customer-generator shall be billed at the applicable rates under Subsection (c) of this Section. The method used to measure energy produced and issue credits under this Section shall be the same for subscriber-owned facilities and dedicated program-managed facilities. The energy produced by the customer-generator shall be credited to the customer monthly as follows, applied to all remote-read meter readingsgeneration returned to the grid on or after October January 1, 20189. Customers enrolled in manual meter reading services as of August 31, 2018 shall be credited based on time-of-day rates as of the date meter upgrades necessary to serve such customers on time-of- day rates are completed. -11- 1. Distribution facilities credit Per kWh $0.0099 $0.0109 2. Energy and demand credit – For billings based on generation during the months of May, June, July, August and September a) On-Peak (Mon-Fri, 2 pm to 7 pm, excluding holidays) Per kWh $0.2015 $0.2055 b) Off-Peak Per kWh $0.0428 $0.0437 3. Energy and demand credit – For billings based on generation during the months of January through April and October through December a) On-Peak (Mon-Fri, 5 pm to 9 pm, excluding holidays) Per kWh $0.1788 $0.1824 b) Off-Peak Per kWh $0.0411 $0.0419 c. The Utilities Executive Director shall have authority to extend issuance of credits under Subsection (3)a until December 31, 2018, as needed to comply with requirements of power supply or purchase agreements with project owners. Section 3. That Sections 26-465 (c), (e), (f), (q), and (r) of the Code of the City of Fort Collins are hereby amended to read as follows: Sec. 26-465. Residential demand service, schedule RD. . . . (c) Monthly rate. (1) Tiered Rate - Limited Term. The monthly rates shall be the sum of the following charges, applied to all remotemanual-read meter readings on or after January 1, 20198, through September 30, 2018. Customers enrolled in manual meter reading services as of August 31, 2018 shall remain on the tiered rates below until the date meter upgrades necessary to serve such customers on time-of- day rates are completed, at which time the time-of-day rates in subsection (2) of this Section shall apply. a. Fixed Charge Per account $5.81 $6.40 b. Demand charge Per kW $2.45 $2.50 c. Distribution facilities charge Per kWh $0.0229 -12- $0.0249 d. Energy charge 1. Summer. For billings based on meter readings in the months of June, July and August 2. Non-summer. For billings based on meter readings in the months of January through May and September through December Per kWh $0.0452 $0.0461 Per kWh $0.0434 $0.0443 3. The meter reading date shall generally determine the summer season billing months; however, no customer shall be billed more than three (3) full billing cycles at the summer rate. ... (2) Time of day. The monthly rates for this schedule shall be the sum of the following charges, applied to all remote-read meter readingsenergy consumption on or after October January 1, 20189. Customers enrolled in manual meter reading services as of August 31, 2018 shall be billed based on time-of-day rates as of the date meter upgrades necessary to serve such customers on time-of-day rates are completed. a. Fixed Charge Per account $5.81 $6.40 b. Demand charge Per kW $2.45 cb. Distribution facilities charge Per kWh $0.0257 $0.0280 dc. Energy and demand charge 1. Summer. For billings based on consumption during the months of May, June, July and August, and September a) On-Peak (Mon-Fri, 2 pm to 7 pm, excluding holidays) Per kWh $0.02015 $0.2055 b) Off-Peak Per kWh $0.0428 $0.0437 2. Non-summer. For billings based on consumption during the months of January through April and October through December. a) On-Peak (Mon-Fri, 5 pm to 9 pm, excluding holidays) Per kWh $0.1788 $0.1824 b) Off-Peak Per kWh $0.0411 $0.0419 3. The meter reading date shall generally determine the summer season billing months; however, no customer shall be billed more than -13- three (3) full billing cycles at the summer rate. d. Payment in lieu of taxes (PILOT) and franchise. A charge based on all monthly service charges billed pursuant to this Section 6 percent e. Income-qualified assistance discount. The discount applied to the monthly charges in “a.”, “b.”, and “c.” above for IQAP participating residential customers, as further described in Section 26-724 of the Code. 23 percent ... ... (e) Excess capacity charge. The monthly capacity charge kilowatt set forth in this Subsection (e) may be added to the above charges for service to intermittent loads in accordance with the provisions of the Electric Service Standards. Per kW $2.10 $2.21 (f) Standby service charges. Standby service, if available, will be provided on an annual contract basis at a level at least sufficient to meet probable service demand (in kilowatts) as determined by the customer and approved by the utility according to the following: (1) Monthly standby distribution charge: . . . (q) Net metering. . . . (5) a. Tiered Rate - Limited Term. The customer-generator's consumption of energy from the utility and production of energy that flows into the utility's distribution system shall be measured on a monthly basis. The energy from the utility consumed by the customer-generator shall be billed at the applicable seasonal tiered rate as outlined in Subsection (c) of this Section. The energy produced by the customer-generator shall be credited to the customer monthly as follows, applied to all remotemanual-read meter readings on or after January 1, 20198, through September 30, 2018. Customers enrolled in manual meter reading Contracted standby service, this charge shall be in lieu of the distribution facilities charge. Per kW $2.12 $2.23 For all metered kilowatts in excess of the contracted amount Per kW $6.35 $6.67 -14- services as of August 31, 2018 shall remain on the tiered rates below until the date meter upgrades necessary to serve such customers on time-of-day rates are completed, at which time the time-of-day rates in subsection (b.) of this Section shall apply. 1. Distribution facilities credit Per kWh $0.0257 $0.0283 2. Energy and demand credit Per kWh $0.0647 $0.0660 b. Time-of-day. For customer-generators on a "time-of-day" (TOD) rate, consumption of energy from the utility and production of energy that flows into the utility's distribution system shall be measured on a monthly basis. The energy from the utility consumed by the customer-generator shall be billed at the applicable rates under Subsection (c) of this Section. The energy produced by the customer-generator shall be credited to the customer monthly as follows, applied to all remote-read meter readingsgeneration returned to the grid on or after October January 1, 20189. Customers enrolled in manual meter reading services as of August 31, 2018 shall be credited based on time-of-day rates as of the date meter upgrades necessary to serve such customers on time-of-day rates are completed. 1. Distribution facilities credit Per kWh $0.0257 $0.0279 2. Energy and demand credit – For billings based on generation during the months of May, June, July, August and September a) On-Peak (Mon-Fri, 2 pm to 7 pm, excluding holidays) Per kWh $0.2015 $0.2055 b) Off-Peak Per kWh $0.0428 $0.0437 3. Energy and demand credit – For billings based on generation during the months of January through April and October through December a) On-Peak (Mon-Fri, 5 pm to 9 pm, excluding holidays) Per kWh $0.1788 $0.1824 b) Off-Peak Per kWh $0.0411 $0.0419 -15- (r) Net metering-community solar projects. . . . (3) a. Tiered Rate - Limited Term. Both the customer’s consumption of energy from Fort Collins Utilitiesthe utility and interest in the production of energy that flows into Fort Collins Utilities'the utilities’ distribution system shall be measured on a monthly basis. The energy from Fort Collins Utilities consumed by the customer shall be billed at the applicable seasonal tiered rate as outlined in Subsections (c) of this Section. The method used to measure energy produced and issue credits under this Section shall be the same for subscriber-owned facilities and dedicated program-managed facilities. The energy produced by the customer's portion of the qualifying facility shall be credited to the customer monthly as follows, applied to all remotemanual-read meter readings on or after January 1, 20198, through September 30, 2018. Customers enrolled in manual meter reading services as of August 31, 2018 shall remain on the tiered rates below until the date meter upgrades necessary to serve such customers on time-of- day rates are completed, at which time the time-of-day rates under subsection (b.) of this Section shall apply. a. Distribution facilities credit Per kWh $0.0128 $0.0141 b. Energy and demand credit Per kWh $0.0647 $0.0660 b. Time-of-day. For customer-generators on a "time-of-day" (TOD) rate, the customer’s consumption of energy from Fort Collins Utilitiesthe utility and interest in the production of energy that flows into Fort Collins Utilities'the utilities’ distribution system shall be measured on a monthly basis. The energy from the utility consumed by the customer-generator shall be billed at the applicable rates under Subsection (c) of this Section. The method used to measure energy produced and issue credits under this Section shall be the same for subscriber-owned facilities and dedicated program-managed facilities. The energy produced by the customer-generator shall be credited to the customer monthly as follows, applied to all remote-read meter readingsgeneration returned to the grid on or after October January 1, 20198. Customers enrolled in manual meter reading services as of August 31, 2018 shall be credited based on time-of-day rates as of the date meter upgrades necessary to serve such customers on time-of- day rates are completed. 1. Distribution facilities credit Per kWh $0.0128 $0.0141 2. Energy and demand credit – For billings based on generation during the months of May, June, July, August and September -16- a) On-Peak (Mon-Fri, 2 pm to 7 pm, excluding holidays) Per kWh $0.2015 $0.2055 b) Off-Peak Per kWh $0.0428 $0.0437 3. Energy and demand credit – For billings based on generation during the months of January through April and October through December a) On-Peak (Mon-Fri, 5 pm to 9 pm, excluding holidays) Per kWh $0.1788 $0.1824 b) Off-Peak Per kWh $0.0411 $0.0419 Section 4. That Sections 26-466 (c), (e), (q), and (r) of the Code of the City of Fort Collins are hereby amended to read as follows: Sec. 26-466. General service, schedule GS. . . . (c) Monthly rate. The monthly rates for this schedule shall be the sum of the following charges: (1) Fixed Charge a. Single-phase, two-hundred-ampere service Per account $3.61 $4.05 b. Single-phase, above two-hundred-ampere service Per account $10.65 $11.95 c. Three-phase, two-hundred-ampere service Per account $5.50 $6.17 d. Three-phase, above two-hundred-ampere service Per account $13.03 $14.62 (2) Demand charge a. Summer. For billings based on meter readings in the months of June, July, and August Per kWh $0.0273 $0.0278 b. Non-summer. For billings based on meter readings in the months of January through May and September through December Per kWh $0.0167 $0.0170 c. The meter reading date shall generally determine the summer season billing months; however, no customer shall be billed more than three (3) full billing cycles at the summer rate. (3) Distribution facilities charge Per kWh $0.0245 $0.0275 -17- (4) Energy charge a. Summer. For billings based on meter readings in the months of June, July, and August Per kWh $0.0452 $0.0461 b. Non-summer. For billings based on meter readings in the months of January through May and September through December Per kWh $0.0434 $0.0443 c. The meter reading date shall generally determine the summer season billing months; however, no customer shall be billed more than three (3) full billing cycles at the summer rate. ... ... (e) Excess capacity charge. The monthly capacity charge per kilowatt set forth in this Subsection (e) may be added to the above charges for service to intermittent loads in accordance with the provisions of the Electric Service Standards. Per kW $2.10 $2.21 . . . (q) Net metering. . . . (5) The customer-generator's consumption of energy from the utility and production of energy that flows into the utility's distribution system shall be measured on a monthly basis. The energy from the utility consumed by the customer-generator shall be billed at the applicable rate as outlined in Subsection (c) of this Section. The energy produced by the customer-generator shall be credited to the customer monthly as follows: a. Energy credit for billings based on generation during the months of June, July and August Per kWh $0.0452 $0.0461 (r) Net metering-community solar projects. . . . (3) Both the customer's consumption of energy from Fort Collins Utilitiesthe utility and interest in the production of energy that flows into Fort Collins Utilities'the utilities’ distribution system shall be measured on a monthly basis. The energy from Fort Collins Utilities consumed by the customer shall be billed -18- at the applicable seasonal tiered rate as outlined in Subsection (c) of this Section. The energy produced by the customer's portion of the qualifying facility shall be credited to the customer monthly as follows: a. Distribution facilities credit Per kWh $0.0122 $0.0137 b. Energy and demand credit Per kWh $0.0452 $0.0461 Section 5. That Sections 26-467 (c), (e), (f) and (r) of the Code of the City of Fort Collins are hereby amended to read as follows: Sec. 26-467. General service 25, schedule GS25. . . . (c) Monthly rate. The monthly rates for this schedule shall be the sum of the following charges: 1. Fixed Charge a. Single-phase, two-hundred-ampere service Per account $3.61 $4.23 b. Single-phase, above two-hundred-ampere service Per account $10.65 $12.48 c. Three-phase, two-hundred-ampere service Per account $5.50 $6.45 d. Three-phase, above two-hundred-ampere service Per account $13.03 $15.27 2. Demand charge a. Summer. For billings based on meter readings in the months of June, July, and August Per kW $8.31 $8.48 b. Non-summer. For billings based on meter readings in the months of January through May and September through December Per kW $4.76 $4.86 c. The meter reading date shall generally determine the summer season billing months; however, no customer shall be billed more than three (3) full billing cycles at the summer rate. 3. Distribution facilities charge Per kwh $0.0186 $0.0218 4. Energy charge a. Summer. For billings based on meter readings in the months of June, July, and August Per kWh $0.0452 $0.0461 -19- b. Non-summer. For billings based on meter readings in the months of January through May and September through December Per kWh $0.0434 $0.0443 c. The meter reading date shall generally determine the summer season billing months; however, no customer shall be billed more than three (3) full billing cycles at the summer rate. ... ... (e) Excess capacity charge. The monthly capacity charge kilowatt set forth in this Subsection (e) may be added to the above charges for service to intermittent loads in accordance with the provisions of the Electric Service Standards. Per kW $2.10 $2.21 (f) Standby service charges. Standby service, if available, will be provided on an annual contract basis at a level at least sufficient to meet probable service demand (in kilowatts) as determined by the customer and approved by the utility according to the following: (1) Monthly standby distribution charge Contracted standby service, this charge shall be in lieu of the distribution facilities charge. Per kW $3.84 $4.05 For all metered kilowatts in excess of the contracted amount Per kW $11.54 $12.16 . . . (r) Net metering. . . . (5) The customer-generator's consumption of energy from the utility and production of energy that flows into the utility's distribution system shall be measured on a monthly basis. The energy from the utility consumed by the customer-generator shall be billed at the applicable rate as outlined in Subsection (c) of this Section. The energy produced by the customer-generator shall be credited to the customer monthly as follows: a. Energy credit for billings based on generation during the Per kWh $0.0452 -20- months of June, July and August $0.0461 Section 6. That Sections 26-468 (c), (e) through (g), and (u) of the Code of the City of Fort Collins are hereby amended to read as follows: Sec. 26-468. General service 50, schedule GS50. . . . (c) Monthly rate. The monthly rates for this schedule shall be the sum of the following charges: (1) Fixed Charge Per account $9.11 $10.70 An additional charge may be assessed if telephone communication service is not provided by the customer. Per account $40.14 $47.16 (2) Coincident demand charge a. Summer. For billings based on meter readings in the months of June, July and August Per kW $11.91 $12.15 b. Non-summer. For billings based on meter readings in the months of January through May and September through December Per kW $9.08 $9.26 c. The meter reading date shall generally determine the summer season billing months; however, no customer shall be billed more than three (3) full billing cycles at the summer rate. (3) Distribution facilities charge Per kW $6.27 $7.37 (4) Energy charge a. Summer. For billings based on meter readings in the months of June, July, and August Per kWh $0.0452 $0.0461 b. Non-summer. For billings based on meter readings in the months of January through May and September through December Per kWh $0.0434 $0.0443 c. The meter reading date shall generally determine the summer season billing months; however, no customer shall be billed more than three (3) full billing cycles at the summer rate. ... ... (e) Excess capacity charge. The monthly capacity charge per kilowatt set forth in this Subsection (e) may be added to the above charges for service to intermittent loads in accordance with the provisions of the Electric Service Standards. Per kW $2.10 $2.21 -21- (f) Standby service charges. Standby service, if available, will be provided on an annual contract basis at a level at least sufficient to meet probable service demand (in kilowatts) as determined by the customer and approved by the utility according to the following: (1) Standby distribution charge. a. Monthly standby distribution charge shall be the sum of the following charges: Contracted standby service, this charge shall be in lieu of the distribution facilities charge. Per kW $4.94 $5.20 For all metered kilowatts in excess of the contracted amount Per kW $14.82 $15.61 . . . (g) Excess circuit charge. In the event a utility customer in this rate class desires excess circuit capacity for the purpose of controlling the available electric capacity of a backup circuit connection, this service, if available, will be provided on an annual contract basis at a level at least sufficient to meet probable backup demand (in kilowatts) as determined by the customer and approved by the utility according to the following: (1) Monthly charge shall be the sum of the following charges: Contracted backup capacity per month Per kW $1.01 $1.06 Metered kilowatts in excess of the contracted amount Per kW $3.04 $3.20 (2) In the event the contractual kilowatt limit is exceeded, a new annual contract period will automatically begin as of the month the limit is exceeded. The metered demand in the month of exceedance shall become the minimum contracted demand level for the excess circuit charge. . . . (u) Net metering. . . . (5) The customer-generator's consumption of energy from the utility and production of energy that flows into the utility's distribution system shall be measured on a monthly basis. The energy from the utility consumed by the customer-generator shall be billed at the applicable rate as outlined in Subsection -22- (c) of this Section. The energy produced by the customer-generator shall be credited to the customer monthly as follows: a. Energy credit for billings based on generation during the months of June, July and August Per kWh $0.0452 $0.0461 Section 7. That Sections 26-469 (c), (e) through (g) and (v) of the Code of the City of Fort Collins are hereby amended to read as follows: Sec. 26-469. General service 750, schedule GS750. . . . (c) Monthly rate. The monthly rates for this schedule shall be the sum of the following charges: (1) Fixed Charge Per account $15.62 $20.77 a. Additional charge for each additional metering point Per account $9.53 $12.67 b. An additional charge may be assessed if telephone communication service is not provided by the customer. Per account $40.14 $53.39 (2) Coincident demand charge a. Summer. For billings based on meter readings in the months of June, July and August Per kW $11.74 $11.97 b. Non-summer. For billings based on meter readings in the months of January through May and September through December Per kW $8.95 $9.13 c. The meter reading date shall generally determine the summer season billing months; however, no customer shall be billed more than three (3) full billing cycles at the summer rate. (3) Distribution facilities charge a. First seven hundred fifty (750) kilowatts Per kW $6.02 $8.01 b. All additional kilowatts Per kW $3.56 $4.73 (4) Energy charge a. Summer. For billings based on meter readings in the months of June, July, and August Per kWh $0.0445 $0.0454 b. Non-summer. For billings based on meter readings in the months of January through May and September through Per kWh $0.0427 -23- December $0.0436 c. The meter reading date shall generally determine the summer season billing months; however, no customer shall be billed more than three (3) full billing cycles at the summer rate. ... ... (e) Excess capacity charge. The monthly capacity charge per kilowatt set forth in this Subsection (e) may be added to the above charges for service to intermittent loads in accordance with the provisions of the Electric Service Standards. Per kW $2.10 $2.21 (f) Standby service charges. Standby service, if available, will be provided on an annual contract basis at a level at least sufficient to meet probable service demand (in kilowatts) as determined by the customer and approved by the utility according to the following: (1) Standby distribution charge. a. Monthly standby distribution charges shall be paid in the following amounts Contracted standby service, this charge shall be in lieu of the distribution facilities charge. Per kW $3.42 $3.59 For all metered kilowatts in excess of the contracted amount Per kW $10.28 $10.80 . . . (g) Excess circuit charge. In the event a utility customer in this rate class desires excess circuit capacity for the purpose of controlling the available electric capacity of a backup circuit connection, this service, if available, will be provided on an annual contract basis at a level at least sufficient to meet probable backup demand (in kilowatts) as determined by the customer and approved by the utility at the following rates: (1) Monthly charge. . Contracted backup capacity per month Per kW $0.70 $0.74 Metered kilowatts in excess of the contracted amount Per kW $2.11 $2.22 -24- . . (v) Net metering. . . . (5) The customer-generator's consumption of energy from the utility and production of energy that flows into the utility's distribution system shall be measured on a monthly basis. The energy from the utility consumed by the customer-generator shall be billed at the applicable rate as outlined in Subsection (c) of this Section. The energy produced by the customer-generator shall be credited to the customer monthly as follows: a. Energy credit for billings based on generation during the months of June, July and August Per kWh $0.0445 $0.0454 Section 8. That Sections 26-470 (c), (e), and (s) of the Code of the City of Fort Collins are hereby amended to read as follows: Sec. 26-470. Substation service, schedule SS. . . . (c) Monthly rate. The monthly rates for this schedule shall be the sum of the following charges: (1) Fixed Charge Per account $35.51 $49.36 (2) Coincident demand charge a. Summer. For billings based on meter readings in the months of June, July and August Per kW $11.56 $11.79 b. Non-summer. For billings based on meter readings in the months of January through May and September through December Per kW $8.81 $8.99 c. The meter reading date shall generally determine the summer season billing months; however, no customer shall be billed more than three (3) full billing cycles at the summer rate. (3) Distribution facilities charge Per kW $2.88 $4.00 (4) Energy charge a. Summer. For billings based on meter readings in the months of June, July, and August Per kWh $0.0439 $0.0448 -25- b. Non-summer. For billings based on meter readings in the months of January through May and September through December Per kWh $0.0420 $0.0428 c. The meter reading date shall generally determine the summer season billing months; however, no customer shall be billed more than three (3) full billing cycles at the summer rate. ... ... (e) Standby service charges. Standby service, if available, will be provided on an annual contract basis at a level at least sufficient to meet probable service demand (in kilowatts) as determined by the customer and approved by the utility at the following rates: (1) Standby distribution charge. a. Monthly standby distribution charge: Contracted standby service, this charge shall be in lieu of the distribution facilities charge. Per kW $2.56 $2.68 For all metered kilowatts in excess of the contracted amount Per kW $7.68 $8.03 . . . (s) Net metering. . . . (5) The customer-generator's consumption of energy from the utility and production of energy that flows into the utility's distribution system shall be measured on a monthly basis. The energy from the utility consumed by the customer-generator shall be billed at the applicable rate as outlined in Subsection (c) of this Section. The energy produced by the customer-generator shall be credited to the customer monthly as follows: a. Energy credit for billings based on generation during the months of June, July and August Per kWh $0.0439 $0.0448 Section 9. That the amendments herein are effective and shall go into effect as follows: -26- a. Amended commercial schedule tiered rates (GS, GS25, GS50, GS750 & SS) shall apply to all electricity used on or after January 1, 20182019; b. Amended schedules of tiered rates for all other rate classes shall apply to all bills issued on the basis of meter readings on or after January 1, 20182019; c. Schedules of residential TOD rates (R and RD rate classes) shall apply to all bills issued on the basis of meter readings on or after October 1, 2018. Section 10. That Section 26-471 of the Code of the City of Fort Collins is hereby amended to read as follows: Sec. 26-471. - Special area floodlighting, schedule FL. (a) Applicability. Special area floodlighting, schedule 10 shall be available within the corporate limits of the City and the suburban fringe for outdoor area floodlighting of consumer's property from dusk to dawn. (b) Monthly rate. The monthly rates (including a six (6) percent charge in lieu of taxes and franchise) are as follows: (1) Charge per lamp, mercury vapor: a. One hundred seventy five (175) watt $16.93 $17.78 b. Two hundred fifty (250) watt $19.94 $20.94 c. Four hundred (400) watt $26.14 $27.45 (2) Charge per lamp, high-pressure sodium: a. Seventy (70) watt $7.15 $7.51 b. One hundred (100) watt $10.12 $10.63 c. One hundred fifty (150) watt $16.01 $16.81 d. Two hundred fifty (250) watt $20.41 $21.43 e. Four hundred (400) watt $26.96 $28.31 (3) Charge per lamp, LED: a. Fifty-four (54) watt $7.37 b. Seventy-two (72) watt $8.57 -27- (c) Service charge. Service charges and connection fees shall be as set forth in Subsection 26-712(b). (d) Service rights fee in certain annexed areas. A fee for defraying the cost of acquisition of service rights from Poudre Valley Rural Electric Association (PVREA) shall be charged for each service in areas annexed into the City after April 22, 1989, if such area was previously served by PVREA. The service rights fee will be collected monthly for a period of ten (10) consecutive years following the date of acquisition by the City of electric facilities in such area from PVREA. If service was previously provided by PVREA, the fee shall be twenty-five (25) percent of charges for electric power service. For services that come into existence in the affected area after date of acquisition, the fee shall be five (5) percent of charges for electric power service. In the event that the City Council has determined that a reduction of the service rights fee is justified in order to mitigate the economic impacts to a lot or parcel of land at the time of annexation of said lot or parcel of land, the service rights fee charged pursuant to this Subsection may be reduced by the City Council pursuant to a schedule set forth in the ordinance annexing said parcel or lot. The service rights fee charged pursuant to this Subsection shall not be subject to the charge in lieu of taxes and franchise otherwise required in this Section. (e) Payment of charges. Due dates and delinquency procedures shall be as set forth in § 26- 713. (f) Contract period and conditions. (1) Those desiring floodlighting service shall sign a service contract at the electric utility office. This contract may be terminated at the end of any billing period upon ten (10) days' written notice to the City. (2) The lamps shall be controlled by automatic control equipment and burning time shall be from approximately thirty (30) minutes after sunset to approximately thirty (30) minutes before sunrise. (3) The customer shall notify the utility of any operational failure of the lamp. Lamp replacements or repairs will be performed only during regular working hours. (g) Rules and regulations. Service supplied under this schedule is subject to the terms and conditions set forth in the electric utility rules and regulations, as approved by the City Council. Copies may be obtained from the Utility's Customer Service Office. Section 11. That Section 26-472 of the Code of the City of Fort Collins is hereby amended to read as follows: Sec. 26-472. - Traffic signal service, schedule T. (a) Availability. The traffic signal service, schedule T, shall be available within the corporate limits of the City. -28- (b) Applicability. This schedule shall be applicable only to municipal traffic signal service. (c) Monthly rate. The monthly rates (including a six (6) percent charge in lieu of taxes and franchise) shall be the sum of the following charges: (d) Payment of charges. Bills for traffic signal energy consumption and equipment rental shall be rendered by the electric utility and paid by the City at the end of each month. Monthly billings shall be based on the inventory of completed installations at the time of billing. Introduced, considered favorably on first reading, and ordered published this 6th day of November, A.D. 2018, and to be presented for final passage on the 20th day of November, A.D. 2018. __________________________________ Mayor ATTEST: _______________________________ City Clerk (1) Fixed charge Per account $73.16 $76.82 (2) Energy charge Per kWh $0.0680 $0.0714 (3) Service extensions and signal installations made by the utility shall be paid for by the City General Fund, subject to material and installation costs at the time of installation. -29- Passed and adopted on final reading on the 20th day of November, A.D. 2018. __________________________________ Mayor ATTEST: _______________________________ City Clerk -1- ORDINANCE NO. 135, 2018 OF THE COUNCIL OF THE CITY OF FORT COLLINS AMENDING CHAPTER 26 OF THE CODE OF THE CITY OF FORT COLLINS TO REVISE STORMWATER RATES, FEES, AND CHARGES WHEREAS, the City Council is empowered and directed by Article XII, Section 6 of the City Charter, 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, 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 citywide master plans recommending stormwater facilities necessary to provide for proper drainage and control of flood and surface waters within Fort Collins; 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, City Code Section 26-513 imposes stormwater utility fees on all parcels of land within the city to pay for the operation, maintenance, administration and routine functions of the existing and future City stormwater facilities established within the city; and WHEREAS, City Code Section 26-514 sets forth the manner in which stormwater utility fees are to be determined; and WHEREAS, the proposed stormwater utility fee adjustment for 2019 reflects an increase of approximately 2%; and WHEREAS, the Water Board considered the proposed stormwater utility fee adjustments for 2019 at its meeting on October 18, 2018, and recommended approval of the proposed adjustments; and WHEREAS, pursuant to City Code Section 26-511, the City Manager recommends the proposed stormwater utility fee for 2019; 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 utility fee as set forth herein. -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 26-514(a)(3) of the Code of the City of Fort Collins is hereby amended to read as follows: Sec. 26-514. - Determination of stormwater utility fee. (a) The stormwater utility fee shall be determined as set forth in this Section, and shall be based upon the area of each lot or parcel of land and the runoff coefficient of the lot or parcel. For the purposes of this Section, the total lot or parcel area shall include both the actual square footage of the lot or parcel and the square footage of open space and common areas allocated to such lot as provided in Paragraph (4) of this Subsection. The stormwater utility fee shall recover the costs of both operations and maintenance and a portion of capital improvements. The Utilities Executive Director shall determine the rates that shall apply to each specific lot or parcel of land within the guidelines herein set forth and shall establish the utility fee in accordance with the rate together with the other factors set forth as follows: . . . (3) The base rate for the stormwater utility fee shall be $0.0043526 $0.00444 per square foot per month for all areas of the City. . . . Section 3. That the modifications set forth above shall be effective for all fees accruing on or after January 1, 2019. Introduced, considered favorably on first reading, and ordered published this 6th day of November, A.D. 2018, and to be presented for final passage on the 20th day of November, A.D. 2018. __________________________________ Mayor ATTEST: _______________________________ City Clerk -3- Passed and adopted on final reading on the 20th day of November, A.D. 2018. __________________________________ Mayor ATTEST: _______________________________ City Clerk $0.2015 $0.2055  ATTACHMENT 7 $28/month $12,423 $82,641 $16,695 DocuSign Envelope ID: F4E9F08D-4988-4ADA-8377-119606478D07 9.66 ENVIR ENHANCEMENT - 1.0 FTE Utilities: Wastewater/Water/Stormwater Water - Field Operations Manager $58,621 $54,696 00 9.69 ENVIR ENHANCEMENT - Utilities: Wastewater/Stormwater - Regulatory Water Quality Monitoring Study (bacteriological) $37,500 $37,500 00 9.72 ENVIR ENHANCEMENT - Utilities: Wastewater/Water/Stormwater - Engineering Support to Maintain Levels of Service $95,550 $95,550 00 10.19 HPG ENHANCEMENT: CAPITAL - Utilities: Asset Register and Work Order Management System $11,000 $152,000 00 10.20 HPG ENHANCEMENT: Utilities: Water/Wastewater/Stormwater Scanning As-built Plans $15,000 $0 00 10.23 HPG ENHANCEMENT: CAPITAL - Utilities: 700 Wood Street Building/Facilities $40,000 $17,500 00 11.20 SAFE ENHANCEMENT: Utilities: Stormwater - Drainage and Detention Maintaining Existing Levels of Service $40,500 $40,500 00 11.11 SAFE ENHANCEMENT: CAPITAL REPLACEMENT - Utilities: Stormwater - Castlerock Storm Sewer Evaluation and Rep $300,000 $0 00 11.12 SAFE ENHANCEMENT: CAPITAL - Utilities: Stormwater - Poudre River at Oxbow Levee $412,000 $0 00 11.13 SAFE ENHANCEMENT: CAPITAL - Utilities: Stormwater - North College Drainage Improvement District, Phase 1 $267,800 $0 00 11.14 SAFE ENHANCEMENT: CAPITAL - Utilities: Remington Street Water, Wastewater and Stormwater Improvements $412,000 $2,546,200 00 11.15 SAFE ENHANCEMENT: CAPITAL - Utilities: Stormwater - Timberline Levee (Design Only) $103,000 $0 00 11.16 SAFE ENHANCEMENT: CAPITAL - Utilities: Stormwater - Drake Levee (Design Only) $51,500 $0 00 11.17 SAFE ENHANCEMENT: CAPITAL - Utilities: Stormwater - Flood Warning System $100,000 $100,000 00 86.10 ENVIR ENHANCEMENT: Encampment Cleaning Services $80,000 $80,000 00 9.67 ENVIR ENHANCEMENT - 1.0 FTE Utilities: Wastewater/Water/Stormwater Utilities Project Coordinator $48,857 $42,529 11 9.68 ENVIR ENHANCEMENT - 1.0 FTE Utilities: Wastewater/Water/Stormwater Over hire for Engineering Director $15,616 $0 11 11.19 SAFE ENHANCEMENT: Utilities: Stormwater Outreach and Engagement Enhanced Effort $20,000 $20,000 11 11.21 SAFE ENHANCEMENT CAPITAL - Utilities: Wastewater/Water/Stormwater - Geographic Information System Program $66,600 $66,600 11 87.2 SAFE ENHANCEMENT: OEM $7,000 $7,150 11 Capital Replacement - Utilities: Stormwater - Collection System Replacement - Small Capital Projects % Change 9.2% -4.0% 5.4% 0.2% 3.5% ATTACHMENT 3