HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 09/01/2020 - FIRST READING OF ORDINANCE NO. 108, 2020, AMENDING Agenda Item 8
Item # 8 Page 1
AGENDA ITEM SUMMARY September 1, 2020
City Council
STAFF
Lisa Rosintoski, Utilities Deputy Director, Customer Connections
Jamie Gaskill, Sr. Supervisor, Project Management
Cyril Vidergar, Legal
SUBJECT
First Reading of Ordinance No. 108, 2020, Amending Chapter 26 of the Code of the City of Fort Collins to
Clarify Utility Accounts, Billing and Collections.
EXECUTIVE SUMMARY
The purpose of this item is to adopt changes to City Code to align with requirements in the 2020-2025 LEAP
Vendor Agreement. Under current billing practices, utility bills are treated as a single customer account
payment balance, and payments made to an account are applied equally across utility service products on that
account. The Code changes will allow for Low-Income Energy Assistance Program (LEAP) payments to be
applied only to electric service (as required in the 2020-2025 LEAP Vendor Agreement), even if a customer
has other Fort Collins utility services (e.g., water, wastewater, stormwater and/or broadband).
These Code changes will enable Fort Collins Utilities to remain a LEAP Vendor which benefits the 200+
income-qualified customers that receive LEAP in two ways: (1) they get a more accurate benefit amount
because Fort Collins Utilities is able to provide Estimated Home Heating Costs (EHHC) from which LEAP
bases benefit calculations, and (2) it is more convenient for the customer because LEAP payments are
automatically applied to a customer’s utility account.
STAFF RECOMMENDATION
Staff recommends adoption of the Ordinance on First Reading.
BACKGROUND / DISCUSSION
LEAP Vendor Background
Fort Collins Utilities became a Low-Income Energy Assistance Program (LEAP) Vendor in 2016 as part of the
City’s efforts to start the Income-Qualified Assistance Program. Instead of requiring customers to complete a
separate qualification threshold, the Income-Qualified Assistance Program uses LEAP enrollment as the
qualification criteria for eligible customers to receive discounted rates on select utility services. Although being
a LEAP Vendor is not a requirement for Fort Collins Utilities to access data about LEAP customers, it enables
the City to provide a more streamlined and comprehensive portfolio of low-income programs.
Background on Changes Needed to Maintain LEAP Vendor Status
During the process to renew the LEAP Vendor Agreement between the Colorado Department of Human
Services (CDHS) and Fort Collins Utilities, staff discovered several requirements in the renewal Agreement
that require the City to revise Code and processes to ensure compliance. Prior to staff and CDHS preparing
the renewal Agreement, a federal audit of the LEAP program also revealed a need for LEAP vendors to
provide more specific assurances to CDHS regarding how customer benefits were being applied. According to
Agenda Item 8
Item # 8 Page 2
the Agreement, LEAP benefit payments may only be applied to electric service products. To verify compliance
with this requirement, City Code needs to be modified to state that 100% of LEAP payments may be applied to
the electric service amounts due on a customer’s account, even if other utilities are received at a premise, and
under the City’s general collection practices all monthly service fees are otherwise treated as a single payable
amount.
Staff recommends clarifying the Code and payment processing practices for several reasons:
• Acting as a LEAP Vendor allows Fort Collins Utilities to offer a more comprehensive portfolio of low-
income utility offerings.
• By remaining a LEAP Vendor, Fort Collins Utilities enables customers who receive LEAP payments to
receive more accurate benefit amounts because Fort Collins Utilities can provide LEAP with Estimated
Home Heating Costs (EHHC) that are based on past utility use at the premise where a LEAP recipient
resides. Without the EHHC, LEAP recipients receive payments based on a default formula that may not
resemble actual use at the premise where they reside.
• As a LEAP Vendor, Fort Collins Utilities applies LEAP payments directly to a customer’s utility account. If
Fort Collins Utilities is no longer a LEAP Vendor, customers will receive LEAP benefits on an Electronic
Benefits Transfer (EBT) card, which represents a form of payment not accepted by Fort Collins Utilities. In
which case, customers must get cash out with the EBT card and then pay utility bills in-person, adding
extra time and effort for the customer to pay utility bills using LEAP benefits, increasing barriers to program
outcomes.
CITY FINANCIAL IMPACTS
This Code change will require staff time to execute. Under the separate LEAP Vendor Agreement, additional
costs may be incurred to support manual processes until it is determined whether additional programming may
be required for the new billing software to accommodate the requirement payment processes. There are no
other known financial impacts to the City.
BOARD / COMMISSION RECOMMENDATION
The Energy Board reviewed the proposed Code changes at its regular August 13, 2020, meeting, and staff has
incorporated the Board’s feedback.
The Water Board was presented with the proposed Code changes via a Memorandum during the week of
August 17, 2020, and staff has incorporated the Board’s feedback.
ATTACHMENTS
1. LEAP Vendor Agreement (PDF)
2020-2025 APPROVED METERED FUEL VENDOR DATA INFORMATION
1. Enter the complete vendor/business name: ______________________________________________
_________________________________________________________________________________
2. Enter the company FEIN (Federal Identification Number): ___________________________________
3. Enter the business mailing address (including zip code): ____________________________________
_________________________________________________________________________________
4. Enter the names direct phone numbers and email addresses of at least two contacts for your business:
Name: _____________________ Email: _________________________ Phone: __________________
Name: ______________________ Email: ________________________ Phone: __________________
5. Enter the business fax number(s) for contact: ______________________________________________________
6. Enter the LEAP Vendor Number (provided by the State LEAP Office): _________________________________
Please place a check by the Colorado counties which your business serves:
(01) Adams ___ (17) Dolores ___ (33) Lake ___ (49) Pitkin ___
(02) Alamosa ___ (18) Douglas ___ (34) La Plata ___ (50) Prowers ___
(03) Arapahoe ___ (19) Eagle ___ (35) Larimer ___ (51) Pueblo ___
(04) Archuleta ___ (20) Elbert ___ (36) Las Animas ___ (52) Rio Blanco ___
(05) Baca ___ (21) El Paso ___ (37) Lincoln ___ (53) Rio Grande ___
(06) Bent ___ (22) Fremont ___ (38) Logan ___ (54) Routt ___
(07) Boulder ___ (23) Garfield ___ (39) Mesa ___ (55) Saguache ___
(08) Chaffee ___ (24) Gilpin ___ (40) Mineral ___ (56) San Juan ___
(09) Cheyenne ___ (25) Grand ___ (41) Moffat ___ (57) San Miguel ___
(10) Clear Creek ___ (26) Gunnison ___ (42) Montezuma ___ (58) Sedgwick ___
(11) Conejos ___ (27) Hinsdale ___ (43) Montrose ___ (59) Summit ___
(12) Costilla ___ (28) Huerfano ___ (44) Morgan ___ (60) Teller ___
(13) Crowley ___ (29) Jackson ___ (45) Otero ___ (61) Washington ___
(14) Custer ___ (30) Jefferson ___ (46) Ouray ___ (62) Weld ___
(15) Delta ___ (31) Kiowa ___ (47) Park ___ (63) Yuma ___
(16) Denver ___ (32) Kit Carson ___ (48) Phillips ___ (80) Broomfield ___
7. Please place a check by the type(s) of fuel service provided by your business:
Natural Gas:____ Electric:____
ATTACHMENT 1
Page 1 of 7
LOW-INCOME ENERGY ASSISTANCE PROGRAM (LEAP)
METERED FUEL VENDOR AGREEMENT
Agreement made by and between the State of Colorado, Department of Human Services (hereinafter
referred to as the State Department) and
_____________________________________________________________________________________
(hereinafter referred to as the Vendor).
Persons signing for the Vendor hereby swear and affirm that they are authorized to act on the Vendor’s
behalf and acknowledge that the State is relying on their representations to that effect. By the signature
below, the Vendor acknowledges that it has read, understands, and agrees to this Agreement.
__________________________ ____________________________ __________________________
Vendor Representative Name Vendor Signature Date
WHEREAS, the Low-Income Home Energy Assistance Act of 1981 (P.L. 97-35) provides for home
energy assistance to eligible households; and
WHEREAS, the purpose of Colorado’s Low-Income Energy Assistance Program (LEAP) is to help low-
income Coloradans meet their winter home heating costs; and
WHEREAS, the parties hereto desire to establish an arrangement to carry out the provisions of this
Act and to assure that funds available under this Act are used in accordance therewith,
NOW, therefore it is hereby mutually agreed:
A. Offer/Acceptance. This LEAP Metered Fuel Vendor Agreement (“Agreement”) is between the
State Department and the Vendor. This Agreement is effective upon the Vendor’s signature
and performance shall start on or after October 1, 2020.
B. The following definitions shall apply in the interpretation of this Agreement:
1. “County Department” means the County Department of Human/Social Services of a
particular county as designated by the State Department. For the purposes hereof, when
the County Department is so designated by the State Department, the Vendor may
consider, interact, and deal with such County Department as the authorized agent of the
State Department.
2. “Designee” means any County Department or contractor determining eligibility for the
program.
3. “Electronic Funds Transfer” (EFT) is the method used to pay LEAP assistance benefits.
4. “Eligibility Period” means there shall be one eligibility period for the Basic Low-Income
Energy Assistance Programs from November 1st through April 30th. If April 30th for a
particular calendar year falls on a holiday or weekend, then the eligibility period shall be
Page 2 of 7
extended until midnight the next business day. This program is contingent upon the
continued availability of funds in accordance with 9 CCR 2503-7.
5. “Eligible Household” is a Household that has applied for and been approved for LEAP
assistance benefits and for whom the Vendor has been notified by the County
Department, the State Department, or its designee that payment will be made to the
Vendor on behalf of the Household.
6. “Estimated Home Heating Costs (EHHC)” are the amount of the heating costs incurred
during the previous heating season for the program applicant’s address at the time of
application to be used as an estimate, or projection, of the anticipated heating costs for
the current heating season (November 1st through April 30th). Such estimated heating
costs shall not include payment arrearages, investigative charges, reconnection fees, or
other such charges not related to residential fuel prices and consumption levels. EHHC
may be provided if the Vendor has serviced the service address; it is not required that
the Household applying for LEAP assistance benefits lived at the service address during
the previous heating season.
7. “Good Faith Effort” is a documented attempt to reach Eligible Households through
phone contacts, written correspondence and/or personal visits.
8. “Heat Related Arrearage” means any past due amounts for the primary heating fuel
and/or supportive fuel.
9. “Home Heating Costs” are charges directly related to the primary heating source used in
a residential dwelling.
10. “Household” means any individual or group of individuals who are living together as one
economic unit for whom primary heating fuel is customarily purchased in common or
who make undesignated payments for heat in the form of rent.
11. “Non-Bulk Fuel” or “Metered Fuel” is an energy source for home heating which is
provided by a utility company and is regulated and metered by the utility company.
Normally, non-bulk fuel includes natural gas and electricity.
12. “Overpayment” means a Household received benefits in excess of the amount due to
that Household based on eligibility and payment determination in accordance with LEAP
rules.
13. “Primary Heating Fuel” is the main type of fuel used to provide heat within the dwelling.
14. “Primary Heating Source” is the primary heating system that provides heat to the
dwelling such as a furnace, wood burning stove or boiler. Temporary or portable heating
sources are not considered a primary heating source and, therefore, are not eligible for
LEAP assistance.
15. “Program Year” means from November 1st through April 30th for the Heating Fuel
Assistance Program. If April 30th for a particular calendar year falls on a holiday or
weekend, then the eligibility period shall be extended until midnight the next business
Page 3 of 7
day. This program is contingent upon the continued availability of funds in accordance
with 9 CCR 2503-7.
16. “Program Applicant” means a person or household that has applied for LEAP benefit
assistance.
17. “State Department” means the Colorado Department of Human Services, Low-Income
Energy Assistance Program or its designees.
18. “Supportive Fuel” means an energy source needed to operate the primary heating
system in a residential setting. For example, electricity may be a supportive fuel required
to operate a natural gas furnace.
19. “Tampering” or “Tampered Account” means unlawfully or unauthorized adjustment of
fuel to the Household by altering equipment such as a gas or electric meter.
C. The Vendor agrees to abide by the following provisions:
1. The Vendor shall notify the State Department at least 30 days prior to any change in
business ownership, name, address, Vendor contact information and banking
information.
2. The Vendor shall not treat a Household receiving assistance under the program
adversely because of such assistance.
3. The Vendor shall not discriminate, either in the cost of the goods supplied or the
services provided, against the Household on whose behalf payments are made.
4. The Vendor shall provide County Departments or their designees documented
Estimated Home Heating Costs for the period of November 1st through April 30th of the
previous year for any Household using their service. Such costs shall be based on
historical usage and such costs shall be provided to the County Department or its
designee within five (5) business days of the request. If the program applicant is without
heat, the Vendor shall provide Estimated Home Heating Costs within 24 hours of the
request. If the Vendor refuses to provide Estimated Home Heating Costs for a
Household, the County Department or it designee shall make any payments to the
Eligible Household instead of the Vendor, unless the Vendor documents that such data
are not available. The State Department reserves the right to audit Vendor estimating
procedures and to terminate the Vendor Agreement if estimates are found to be
inaccurate or inappropriate.
5. Upon notification from the County Department or its designee that an application has
been received for a Household pending service disruption, the Vendor shall not
terminate services to the Household for ten (10) working days or until the Vendor is
notified of the eligibility determination of the Household, whichever occurs first.
6. Upon receipt of LEAP assistance benefits from the State Department and on behalf of an
Eligible Household, the Vendor shall credit the Eligible Household’s account promptly
and no later than ten (10) business days after a payment is received. Credit will be
reflected in the next normal billing.
Page 4 of 7
7. Upon notification by the County Department, State Department, or its designee or
discovery by the Vendor of incorrect payments or overpayments, the Vendor shall
reimburse those payments to the County Department or its designee within ten (10)
business days. The Vendor shall accompany all payments returned to the State
Department with the Vendor name, the Household’s name, the Household account
number, the amount returned on behalf of the Household and the date and reason for
return by the Vendor. Checks returned to the State Department should be made out to
“State of Colorado.” Checks returned to the County Department or its designee should
be made out per the County Department or designee’s direction.
8. Once notified by the State Department, the County Department, or a designee
(notification may include the Vendor verifying approvals by accessing the LEAP system
website) that a Household has been approved for LEAP assistance benefits, the Vendor
shall:
i. Initiate, continue or restore service, whichever is applicable to the Eligible
Household, within 24 hours of notification and continue utility services for at
least sixty (60) days after such notification, unless:
1. the Eligible Household is in a pending shutoff situation and the Basic
LEAP program year benefit is an amount less than 25% of the
Household’s arrearage, or
2. the Eligible Household is shut off and the Basic LEAP program year
benefit amount is less than 50% of the Household’s arrearage, or
3. The Eligible Household pre-pays for its electric service. In this case, the
Vendor shall initiate, continue, or restore service, whichever is
applicable to the Eligible Household, within 24 hours of notification and
continue utility services until the LEAP assistance benefit has been
exhausted.
ii. If a LEAP assistance benefit is offered on an account that has been disconnected
due to tampering of gas or electric service, the Vendor shall restore service only
if the LEAP payment exceeds 70% of the past due amount. If a LEAP payment is
offered on a tampered account and it is for less than 70% of the past-due
amount, the Vendor reserves the right to not accept the LEAP assistance benefit
for purposes of restoring service. If payment is not accepted for reconnection,
the benefit will instead be provided to the Eligible Household as a direct client
pay. The Vendor may accept a LEAP payment that is less than 70% of the past
due amount but must as a condition of acceptance restore service and make
arrangements with the Household to pay any remaining balance.
iii. If the Vendor refuses to accept the LEAP program year benefit, the Vendor shall
notify the State or its designee within three (3) business days and send written
notice to the Eligible Household advising them the payment will not be accepted
and no holds/reconnection will be offered. The benefit shall be paid to the
Eligible Household as a direct client pay.
9. Death of a payee. If a LEAP program applicant dies and a benefit has been paid, the
Vendor shall make any remaining LEAP credit balance available to any other member of
Page 5 of 7
the LEAP program applicant Household for a period of 30 days. If the LEAP program
applicant is the only Household member, the Vendor shall maintain any credit balance
for a period of 30 days. The executor of the program applicant’s estate may claim the
LEAP credit balance within this 30-day period. If the LEAP credit balance is not claimed
within 30 days’ notice to the Vendor of the program applicant’s death, the Vendor shall
notify the State Department and forward the credit balance to:
State LEAP Office
1120 Lincoln Street, Suite 1007
Denver, CO 80203
10. The Vendor shall maintain confidentiality of information provided by the State
Department, or its designee, about a Household’s benefit in accordance with applicable
Federal and State Laws.
11. The Vendor shall return any payments that cannot be credited to an account within ten
(10) business days to the County Department, or its designee.
12. The Vendor shall allow all LEAP credit balances to remain on the client’s account until
the LEAP assistance benefit is exhausted, unless the Household no longer uses the
originally approved Vendor.
13. When a Household no longer uses the originally approved Vendor, the Vendor shall
make a Good Faith Effort to locate the Household.
14. If the Household is located, the Vendor shall forward the LEAP credit balance directly to
the Household within ten (10) business days.
15. If the Household cannot be located within thirty (30) business days, the Vendor shall
keep the funds available for the Household for the remainder of the current state fiscal
year, which ends on June 30th. On July 1st, the Vendor shall forward any LEAP credit
balance to the State Department at 1120 Lincoln Street, Suite 1007, Denver, CO 80203.
These credits must be received by the State Department no later than July 10th. If a
client moves or no longer uses the originally approved Vendor after June 30th, the
Vendor shall forward any LEAP credit balance to the State Department on October 1st.
These credits must be received by the State Department no later than October 10th.
16. Upon State Department request, or its designee’s request, the Vendor must return LEAP
credit balances to the State Department within ten (10) business days of the request.
17. The Vendor shall accompany all payments returned to the State Department with a
notification showing the Vendor name, the Household’s name, the Household’s account
number, the amount returned on behalf of the Household and the date and reason for
return by the Vendor. Checks returned to the State Department must be made out to
“State of Colorado.”
18. If the Vendor has sent the LEAP credit balance funds to the Household, and a recovery is
necessary, the County Department or its designee will recover from the Household, not
the Vendor.
Page 6 of 7
19. The Vendor shall report any financial fraud or abuse or misconduct in the administration
of LEAP to the State Department. The Vendor shall cooperate with all State
investigations of suspected fraud or abuse or misconduct. The Vendor may be
prosecuted under applicable Federal and State laws for false claims, statements or
documents or concealment of material fact.
20. All other requirements of Federal and State laws and regulations shall be adhered to.
21. The Vendor shall provide all customers subject to utility shutoff, who are financially
unable to purchase fuel, or who request a LEAP application to the HEAT HELP telephone
line (1-866-432-8435), or the State Department website at: colorado.gov/cdhs/leap.
22. The Vendor shall establish such fiscal control and fund accounting procedures as may be
necessary to assure the proper use and accounting of funds under this Agreement. All
records maintained by the Vendor relating to this Agreement shall be available on
reasonable notice for inspection, audit or other examination and copying, by State
Department representatives or their delegates. Such records shall show the amount of
home energy delivered to each Eligible Household, the amount of payments made for
home energy by such Eligible Households, the dollar value of credit received on behalf
of each Eligible Household, the balance of available benefits and energy costs, and all
documents and calculations in establishing the estimated Home Heating Costs. All
records shall be maintained for a period of three (3) years following the termination of
this Agreement. The State, or its designee, reserves the right to monitor the
implementation of this Agreement by the Vendor.
23. The Vendor shall provide a monthly reconciliation report to the State Department
verifying that each payment received on behalf of an Eligible Household is applied to the
appropriate account within two weeks of the State Department payroll dates.
24. The Vendor shall provide annual natural gas/electric billing and consumption data for
each Eligible Household who has resided at the same service address for the October 1
through September 30 reporting period, when applicable.
25. Non-compliance by the Vendor with any of the above assurances of this Agreement or
applicable law or regulations shall be grounds for immediate termination of this
Agreement. Such termination shall include termination of payments on behalf of
Eligible Households and immediate return of credit balances or refunds owed to the
State Department. Such termination is in addition to all other legal remedies available
to the State Department, including investigation or prosecution of fraud in connection
with this agreement.
26. All Vendors shall establish an account with a financial institution to receive payments via
direct deposit through electronic funds transfer (EFT). The Vendor shall inform the State
Department of any changes in banking information immediately upon the change.
27. All Vendors shall establish internet access to retrieve LEAP program applicant approval
information and LEAP assistance benefit payment data from the State LEAP system
website.
Page 7 of 7
28. LEAP assistance benefit payments shall not be made to the Vendor on behalf of an
Eligible Household if:
i. The Eligible Household does not pay the Vendor directly for its home heating
costs; or
ii. This Agreement has not been executed or has expired or been terminated; or
iii. The Eligible Household’s Vendor cannot be determined or feasibly paid on
behalf of the Eligible Household.
29. By signature of this Agreement, the Vendor agrees to abide by the HIPAA Business
Associate Agreement, attached as Exhibit A.
D. The State Department shall itself or through the County Department, or its designee, as the
case may be:
1. Promptly advise the Vendor of the name, address, account number, if any, and amount
to credit to the account of each Eligible Household and provide the Vendor with a
password to retrieve payroll information from the LEAP system website;
2. Notify all Eligible Households of the amount of LEAP assistance benefits to be made on
their behalf to the Vendor;
3. Make timely payments to the Vendor for credit to Eligible Households for home energy
supplied in accordance with the terms of this Agreement; and
4. Promptly notify the Vendor of all pertinent changes in this program caused by changes
in applicable law, regulations, or technology.
E. General Provisions:
1. The term of this Agreement shall be October 1, 2020 (or upon signed approval of this
Agreement by the Vendor, whichever is later) through September 30, 2025.
2. This Agreement is subject to and contingent upon the continuing availability of federal
funds. If insufficient funds, as determined by the State Department, are available for
this program, the State Department may immediately terminate this Agreement.
3. This Agreement may be terminated by either party upon 30 days prior written notice to
the other party sent by certified or registered mail.
4. The Vendor may not assign this Agreement without the prior written consent of the
State Department.
5. The Vendor shall comply with all applicable Federal and State laws and regulations,
including confidentiality of all records, termination and restoration of home energy
service, and discrimination. The Vendor certifies that it has all licenses, insurance, and
so on required by law for the provision of services hereunder.
6. If a situation arises that is not clearly covered by the terms of this Agreement, the
Vendor shall seek guidance from the State Department.
Page 1 of 9
HIPAA BAA
Revised August 2018
EXHIBIT A - HIPAA BUSINESS ASSOCIATE AGREEMENT
This HIPAA Business Associate Agreement (“Agreement”) between the State and Contractor is agreed to in
connection with, and as an exhibit to, the Contract. For purposes of this Agreement, the State is referred to as
“Covered Entity” and the Contractor is referred to as “Business Associate”. Unless the context clearly requires a
distinction between the Contract and this Agreement, all references to “Contract” shall include this Agreement.
1. PURPOSE
Covered Entity wishes to disclose information to Business Associate, which may include Protected Health
Information ("PHI"). The Parties intend to protect the privacy and security of the disclosed PHI in compliance
with the Health Insurance Portability and Accountability Act of 1996 (“HIPAA”), Pub. L. No. 104-191 (1996) as
amended by the Health Information Technology for Economic and Clinical Health Act (“HITECH Act”) enacted
under the American Recovery and Reinvestment Act of 2009 (“ARRA”) Pub. L. No. 111–5
(2009), implementing regulations promulgated by the U.S. Department of Health and Human Services at 45
C.F.R. Parts 160, 162 and 164 (the “HIPAA Rules”) and other applicable laws, as amended. Prior to the
disclosure of PHI, Covered Entity is required to enter into an agreement with Business Associate containing
specific requirements as set forth in, but not limited to, Title 45, Sections 160.103, 164.502(e) and 164.504(e) of
the Code of Federal Regulations (“C.F.R.”) and all other applicable laws and regulations, all as may be amended.
2. DEFINITIONS
The following terms used in this Agreement shall have the same meanings as in the HIPAA Rules: Breach, Data
Aggregation, Designated Record Set, Disclosure, Health Care Operations, Individual, Minimum Necessary,
Notice of Privacy Practices, Protected Health Information, Required by Law, Secretary, Security Incident,
Subcontractor, Unsecured Protected Health Information, and Use.
The following terms used in this Agreement shall have the meanings set forth below:
a. Business Associate. “Business Associate” shall have the same meaning as the term “business
associate” at 45 C.F.R. 160.103, and shall refer to Contractor.
b. Covered Entity. “Covered Entity” shall have the same meaning as the term “covered entity” at 45
C.F.R. 160.103, and shall refer to the State.
c. Information Technology and Information Security. “Information Technology” and “Information
Security” shall have the same meanings as the terms “information technology” and “information
security”, respectively, in §24-37.5-102, C.R.S.
Capitalized terms used herein and not otherwise defined herein or in the HIPAA Rules shall have the meanings
ascribed to them in the Contract.
3. OBLIGATIONS AND ACTIVITIES OF BUSINESS ASSOCIATE
a. Permitted Uses and Disclosures.
i. Business Associate shall use and disclose PHI only to accomplish Business Associate’s
obligations under the Contract.
Page 2 of 9
HIPAA BAA
Revised August 2018
i. To the extent Business Associate carries out one or more of Covered Entity’s obligations
under Subpart E of 45 C.F.R. Part 164, Business Associate shall comply with any and all
requirements of Subpart E that apply to Covered Entity in the performance of such obligation.
ii. Business Associate may disclose PHI to carry out the legal responsibilities of Business
Associate, provided, that the disclosure is Required by Law or Business Associate obtains
reasonable assurances from the person to whom the information is disclosed that:
A. the information will remain confidential and will be used or disclosed only as
Required by Law or for the purpose for which Business Associate originally
disclosed the information to that person, and;
B. the person notifies Business Associate of any Breach involving PHI of which it is
aware.
iii. Business Associate may provide Data Aggregation services relating to the Health Care
Operations of Covered Entity. Business Associate may de-identify any or all PHI created or
received by Business Associate under this Agreement, provided the de-identification
conforms to the requirements of the HIPAA Rules.
b. Minimum Necessary. Business Associate, its Subcontractors and agents, shall access, use, and
disclose only the minimum amount of PHI necessary to accomplish the objectives of the Contract, in
accordance with the Minimum Necessary Requirements of the HIPAA Rules including, but not
limited to, 45 C.F.R. 164.502(b) and 164.514(d).
c. Impermissible Uses and Disclosures.
i. Business Associate shall not disclose the PHI of Covered Entity to another covered entity
without the written authorization of Covered Entity.
ii. Business Associate shall not share, use, disclose or make available any Covered Entity PHI in
any form via any medium with or to any person or entity beyond the boundaries or
jurisdiction of the United States without express written authorization from Covered Entity.
d. Business Associate's Subcontractors.
i. Business Associate shall, in accordance with 45 C.F.R. 164.502(e)(1)(ii) and 164.308(b)(2),
ensure that any Subcontractors who create, receive, maintain, or transmit PHI on behalf of
Business Associate agree in writing to the same restrictions, conditions, and requirements that
apply to Business Associate with respect to safeguarding PHI.
ii. Business Associate shall provide to Covered Entity, on Covered Entity’s request, a list of
Subcontractors who have entered into any such agreement with Business Associate.
iii. Business Associate shall provide to Covered Entity, on Covered Entity’s request, copies of
any such agreements Business Associate has entered into with Subcontractors.
e. Access to System. If Business Associate needs access to a Covered Entity Information Technology
system to comply with its obligations under the Contract or this Agreement, Business Associate shall
request, review, and comply with any and all policies applicable to Covered Entity regarding such
Page 3 of 9
HIPAA BAA
Revised August 2018
system including, but not limited to, any policies promulgated by the Office of Information
Technology and available at http://oit.state.co.us/about/policies.
f. Access to PHI. Business Associate shall, within ten days of receiving a written request from Covered
Entity, make available PHI in a Designated Record Set to Covered Entity as necessary to satisfy
Covered Entity’s obligations under 45 C.F.R. 164.524.
g. Amendment of PHI.
i. Business Associate shall within ten days of receiving a written request from Covered Entity
make any amendment to PHI in a Designated Record Set as directed by or agreed to by
Covered Entity pursuant to 45 C.F.R. 164.526, or take other measures as necessary to satisfy
Covered Entity’s obligations under 45 C.F.R. 164.526.
ii. Business Associate shall promptly forward to Covered Entity any request for amendment of
PHI that Business Associate receives directly from an Individual.
h. Accounting Rights. Business Associate shall, within ten days of receiving a written request from
Covered Entity, maintain and make available to Covered Entity the information necessary for
Covered Entity to satisfy its obligations to provide an accounting of Disclosure under 45 C.F.R.
164.528.
i. Restrictions and Confidential Communications.
i. Business Associate shall restrict the Use or Disclosure of an Individual’s PHI within ten days
of notice from Covered Entity of:
A. a restriction on Use or Disclosure of PHI pursuant to 45 C.F.R. 164.522; or
B. a request for confidential communication of PHI pursuant to 45 C.F.R. 164.522.
ii. Business Associate shall not respond directly to an Individual’s requests to restrict the Use or
Disclosure of PHI or to send all communication of PHI to an alternate address.
iii. Business Associate shall refer such requests to Covered Entity so that Covered Entity can
coordinate and prepare a timely response to the requesting Individual and provide direction to
Business Associate.
j. Governmental Access to Records. Business Associate shall make its facilities, internal practices,
books, records, and other sources of information, including PHI, available to the Secretary for
purposes of determining compliance with the HIPAA Rules in accordance with 45 C.F.R. 160.310.
k. Audit, Inspection and Enforcement.
i. Business Associate shall obtain and update at least annually a written assessment performed
by an independent third party reasonably acceptable to Covered Entity, which evaluates the
Information Security of the applications, infrastructure, and processes that interact with the
Covered Entity data Business Associate receives, manipulates, stores and distributes. Upon
request by Covered Entity, Business Associate shall provide to Covered Entity the executive
summary of the assessment.
Page 4 of 9
HIPAA BAA
Revised August 2018
ii. Business Associate, upon the request of Covered Entity, shall fully cooperate with Covered
Entity’s efforts to audit Business Associate’s compliance with applicable HIPAA Rules. If,
through audit or inspection, Covered Entity determines that Business Associate’s conduct
would result in violation of the HIPAA Rules or is in violation of the Contract or this
Agreement, Business Associate shall promptly remedy any such violation and shall certify
completion of its remedy in writing to Covered Entity.
l. Appropriate Safeguards.
i. Business Associate shall use appropriate safeguards and comply with Subpart C of 45 C.F.R.
Part 164 with respect to electronic PHI to prevent use or disclosure of PHI other than as
provided in this Agreement.
ii. Business Associate shall safeguard the PHI from tampering and unauthorized disclosures.
iii. Business Associate shall maintain the confidentiality of passwords and other data required for
accessing this information.
iv. Business Associate shall extend protection beyond the initial information obtained from
Covered Entity to any databases or collections of PHI containing information derived from
the PHI. The provisions of this section shall be in force unless PHI is de-identified in
conformance to the requirements of the HIPAA Rules.
m. Safeguard During Transmission.
i. Business Associate shall use reasonable and appropriate safeguards including, without
limitation, Information Security measures to ensure that all transmissions of PHI are
authorized and to prevent use or disclosure of PHI other than as provided for by this
Agreement.
ii. Business Associate shall not transmit PHI over the internet or any other insecure or open
communication channel unless the PHI is encrypted or otherwise safeguarded with a FIPS-
compliant encryption algorithm.
n. Reporting of Improper Use or Disclosure and Notification of Breach.
i. Business Associate shall, as soon as reasonably possible, but immediately after discovery of a
Breach, notify Covered Entity of any use or disclosure of PHI not provided for by this
Agreement, including a Breach of Unsecured Protected Health Information as such notice is
required by 45 C.F.R. 164.410 or a breach for which notice is required under §24-73-103,
C.R.S.
ii. Such notice shall include the identification of each Individual whose Unsecured Protected
Health Information has been, or is reasonably believed by Business Associate to have been,
accessed, acquired, or disclosed during such Breach.
iii. Business Associate shall, as soon as reasonably possible, but immediately after discovery of
any Security Incident that does not constitute a Breach, notify Covered Entity of such
incident.
Page 5 of 9
HIPAA BAA
Revised August 2018
iv. Business Associate shall have the burden of demonstrating that all notifications were made as
required, including evidence demonstrating the necessity of any delay.
o. Business Associate’s Insurance and Notification Costs.
i. Business Associate shall bear all costs of a Breach response including, without limitation,
notifications, and shall maintain insurance to cover:
A. loss of PHI data;
B. Breach notification requirements specified in HIPAA Rules and in §24-73-103,
C.R.S.; and
C. claims based upon alleged violations of privacy rights through improper use or
disclosure of PHI.
ii. All such policies shall meet or exceed the minimum insurance requirements of the Contract
or otherwise as may be approved by Covered Entity (e.g., occurrence basis, combined single
dollar limits, annual aggregate dollar limits, additional insured status, and notice of
cancellation).
iii. Business Associate shall provide Covered Entity a point of contact who possesses relevant
Information Security knowledge and is accessible 24 hours per day, 7 days per week to assist
with incident handling.
iv. Business Associate, to the extent practicable, shall mitigate any harmful effect known to
Business Associate of a Use or Disclosure of PHI by Business Associate in violation of this
Agreement.
p. Subcontractors and Breaches.
i. Business Associate shall enter into a written agreement with each of its Subcontractors and
agents, who create, receive, maintain, or transmit PHI on behalf of Business Associate. The
agreements shall require such Subcontractors and agents to report to Business Associate any
use or disclosure of PHI not provided for by this Agreement, including Security Incidents and
Breaches of Unsecured Protected Health Information, on the first day such Subcontractor or
agent knows or should have known of the Breach as required by 45 C.F.R. 164.410.
ii. Business Associate shall notify Covered Entity of any such report and shall provide copies of
any such agreements to Covered Entity on request.
q. Data Ownership.
i. Business Associate acknowledges that Business Associate has no ownership rights with
respect to the PHI.
ii. Upon request by Covered Entity, Business Associate immediately shall provide Covered
Entity with any keys to decrypt information that the Business Association has encrypted and
maintains in encrypted form, or shall provide such information in unencrypted usable form.
Page 6 of 9
HIPAA BAA
Revised August 2018
r. Retention of PHI. Except upon termination of this Agreement as provided in Section 5, below,
Business Associate and its Subcontractors or agents shall retain all PHI throughout the term of this
Agreement, and shall continue to maintain the accounting of disclosures required under Section 3.h,
above, for a period of six years.
4. OBLIGATIONS OF COVERED ENTITY
a. Safeguards During Transmission. Covered Entity shall be responsible for using appropriate
safeguards including encryption of PHI, to maintain and ensure the confidentiality, integrity, and
security of PHI transmitted pursuant to this Agreement, in accordance with the standards and
requirements of the HIPAA Rules.
b. Notice of Changes.
i. Covered Entity maintains a copy of its Notice of Privacy Practices on its website. Covered
Entity shall provide Business Associate with any changes in, or revocation of, permission to use
or disclose PHI, to the extent that it may affect Business Associate’s permitted or required uses
or disclosures.
ii. Covered Entity shall notify Business Associate of any restriction on the use or disclosure of
PHI to which Covered Entity has agreed in accordance with 45 C.F.R. 164.522, to the extent
that it may affect Business Associate’s permitted use or disclosure of PHI.
5. TERMINATION
a. Breach.
i. In addition to any Contract provision regarding remedies for breach, Covered Entity shall
have the right, in the event of a breach by Business Associate of any provision of this
Agreement, to terminate immediately the Contract, or this Agreement, or both.
ii. Subject to any directions from Covered Entity, upon termination of the Contract, this
Agreement, or both, Business Associate shall take timely, reasonable, and necessary action to
protect and preserve property in the possession of Business Associate in which Covered
Entity has an interest.
b. Effect of Termination.
i. Upon termination of this Agreement for any reason, Business Associate, at the option of
Covered Entity, shall return or destroy all PHI that Business Associate, its agents, or its
Subcontractors maintain in any form, and shall not retain any copies of such PHI.
ii. If Covered Entity directs Business Associate to destroy the PHI, Business Associate shall
certify in writing to Covered Entity that such PHI has been destroyed.
iii. If Business Associate believes that returning or destroying the PHI is not feasible, Business
Associate shall promptly provide Covered Entity with notice of the conditions making return
or destruction infeasible. Business Associate shall continue to extend the protections of
Page 7 of 9
HIPAA BAA
Revised August 2018
Section 3 of this Agreement to such PHI, and shall limit further use of such PHI to those
purposes that make the return or destruction of such PHI infeasible.
6. INJUNCTIVE RELIEF
Covered Entity and Business Associate agree that irreparable damage would occur in the event Business
Associate or any of its Subcontractors or agents use or disclosure of PHI in violation of this Agreement, the
HIPAA Rules or any applicable law. Covered Entity and Business Associate further agree that money damages
would not provide an adequate remedy for such Breach. Accordingly, Covered Entity and Business Associate
agree that Covered Entity shall be entitled to injunctive relief, specific performance, and other equitable relief to
prevent or restrain any Breach or threatened Breach of and to enforce specifically the terms and provisions of this
Agreement.
7. LIMITATION OF LIABILITY
Any provision in the Contract limiting Contractor’s liability shall not apply to Business Associate’s liability under
this Agreement, which shall not be limited.
8. DISCLAIMER
Covered Entity makes no warranty or representation that compliance by Business Associate with this Agreement
or the HIPAA Rules will be adequate or satisfactory for Business Associate’s own purposes. Business Associate
is solely responsible for all decisions made and actions taken by Business Associate regarding the safeguarding of
PHI.
9. CERTIFICATION
Covered Entity has a legal obligation under HIPAA Rules to certify as to Business Associate’s Information
Security practices. Covered Entity or its authorized agent or contractor shall have the right to examine Business
Associate’s facilities, systems, procedures, and records, at Covered Entity’s expense, if Covered Entity
determines that examination is necessary to certify that Business Associate’s Information Security safeguards
comply with the HIPAA Rules or this Agreement.
10. AMENDMENT
a. Amendment to Comply with Law. The Parties acknowledge that state and federal laws and
regulations relating to data security and privacy are rapidly evolving and that amendment of this
Agreement may be required to provide procedures to ensure compliance with such developments.
i. In the event of any change to state or federal laws and regulations relating to data security
and privacy affecting this Agreement, the Parties shall take such action as is necessary to
implement the changes to the standards and requirements of HIPAA, the HIPAA Rules
and other applicable rules relating to the confidentiality, integrity, availability and
security of PHI with respect to this Agreement.
ii. Business Associate shall provide to Covered Entity written assurance satisfactory to
Covered Entity that Business Associate shall adequately safeguard all PHI, and obtain
Page 8 of 9
HIPAA BAA
Revised August 2018
written assurance satisfactory to Covered Entity from Business Associate’s
Subcontractors and agents that they shall adequately safeguard all PHI.
iii. Upon the request of either Party, the other Party promptly shall negotiate in good faith the
terms of an amendment to the Contract embodying written assurances consistent with the
standards and requirements of HIPAA, the HIPAA Rules, or other applicable rules.
iv. Covered Entity may terminate this Agreement upon 30 days’ prior written notice in the event
that:
A. Business Associate does not promptly enter into negotiations to amend the Contract
and this Agreement when requested by Covered Entity pursuant to this Section; or
B. Business Associate does not enter into an amendment to the Contract and this
Agreement, which provides assurances regarding the safeguarding of PHI sufficient,
in Covered Entity’s sole discretion, to satisfy the standards and requirements of the
HIPAA, the HIPAA Rules and applicable law.
b. Amendment of Appendix. The Appendix to this Agreement may be modified or amended by the
mutual written agreement of the Parties, without amendment of this Agreement. Any modified or
amended Appendix agreed to in writing by the Parties shall supersede and replace any prior version
of the Appendix.
11. ASSISTANCE IN LITIGATION OR ADMINISTRATIVE PROCEEDINGS
Covered Entity shall provide written notice to Business Associate if litigation or administrative proceeding is
commenced against Covered Entity, its directors, officers, or employees, based on a claimed violation by
Business Associate of HIPAA, the HIPAA Rules or other laws relating to security and privacy or PHI. Upon
receipt of such notice and to the extent requested by Covered Entity, Business Associate shall, and shall cause its
employees, Subcontractors, or agents assisting Business Associate in the performance of its obligations under the
Contract to, assist Covered Entity in the defense of such litigation or proceedings. Business Associate shall, and
shall cause its employees, Subcontractor’s and agents to, provide assistance, to Covered Entity, which may
include testifying as a witness at such proceedings. Business Associate or any of its employees, Subcontractors or
agents shall not be required to provide such assistance if Business Associate is a named adverse party.
12. INTERPRETATION AND ORDER OF PRECEDENCE
Any ambiguity in this Agreement shall be resolved in favor of a meaning that complies and is consistent with the
HIPAA Rules. In the event of an inconsistency between the Contract and this Agreement, this Agreement shall
control. This Agreement supersedes and replaces any previous, separately executed HIPAA business associate
agreement between the Parties.
13. SURVIVAL
Provisions of this Agreement requiring continued performance, compliance, or effect after termination shall
survive termination of this contract or this agreement and shall be enforceable by Covered Entity.
Page 9 of 9
HIPAA BAA
Revised August 2018
APPENDIX TO HIPAA BUSINESS ASSOCIATE AGREEMENT
This Appendix (“Appendix”) to the HIPAA Business Associate Agreement (“Agreement”) is s an appendix to the
Contract and the Agreement. For the purposes of this Appendix, defined terms shall have the meanings ascribed
to them in the Agreement and the Contract.
Unless the context clearly requires a distinction between the Contract, the Agreement, and this Appendix, all
references to “Contract” or “Agreement” shall include this Appendix.
1. PURPOSE
This Appendix sets forth additional terms to the Agreement. Any sub-section of this Appendix marked as
“Reserved” shall be construed as setting forth no additional terms.
2. ADDITIONAL TERMS
a. Additional Permitted Uses. In addition to those purposes set forth in the Agreement, Business
Associate may use PHI for the following additional purposes:
i. Reserved.
b. Additional Permitted Disclosures. In addition to those purposes set forth in the Agreement, Business
Associate may disclose PHI for the following additional purposes:
i. Reserved.
c. Approved Subcontractors. Covered Entity agrees that the following Subcontractors or agents of
Business Associate may receive PHI under the Agreement:
i. Reserved.
d. Definition of Receipt of PHI. Business Associate’s receipt of PHI under this Contract shall be
deemed to occur, and Business Associate’s obligations under the Agreement shall commence, as
follows:
i. Reserved.
e. Additional Restrictions on Business Associate. Business Associate agrees to comply with the
following additional restrictions on Business Associate’s use and disclosure of PHI under the
Contract:
i. Reserved.
f. Additional Terms. Business Associate agrees to comply with the following additional terms under the
Agreement:
i. Reserved.
-1-
ORDINANCE NO. 108, 2020
OF THE COUNCIL OF THE CITY OF FORT COLLINS
AMENDING CHAPTER 26 OF THE CODE OF THE CITY OF FORT COLLINS
TO CLARIFY UTILITY ACCOUNTS, BILLING AND COLLECTIONS
WHEREAS, the City Council is empowered and directed by Article XII, Section 6, of the
City Charter to fix, establish, maintain and provide for the collection of such rates, fees or
charges for utility services furnished by the City as will produce revenues sufficient to pay the
costs, expenses and other obligations of the electric utility, as set forth therein; and
WHEREAS, Chapter 26 of the City Code regulates and governs the provision of utility
services; and
WHEREAS, Chapter 26, Article XII, of the City Code sets forth the procedures and
conditions for billing and collection of fees and charges for utility services, including resolution
of delinquent balances and service disconnection, and terms for assessing and collecting fees and
charges due for delivery of specified utility services; and
WHEREAS, such provisions require updating and modification from time to time, for
purposes of clarification, correction of errors and to ensure the Code remains a dynamic
document capable of responding to issues identified by staff, customers, and public assistance
agencies, and changes in technology for delivering utility services; and
WHEREAS, Fort Collins Utilities staff has identified provisions of Chapter 26 of the City
Code where clarification of procedures and conditions for billing and collection are required to
better inform customers and align with current utility practices coinciding with delivery of utility
services to qualified customers on whose behalf the City receives Colorado Low-Income Energy
Assistance Program (LEAP) and other restricted utility program assistance funds; and
WHEREAS, on August 13, 2020, the Energy Board reviewed and provided feedback to
staff regarding the proposed City Code revisions clarifying billing and collection practices; and
WHEREAS, on August 20, 2020, the Water Board reviewed and provided feedback to
staff regarding the proposed City Code revisions clarifying billing and collection practices; and
WHEREAS, the City Council has determined it is desirable to maintain appropriate
utility service billing and collection practices, and that clarification of such practices in the City
Code, as set forth herein, is in furtherance of the benefits provided by the City to its utility
ratepayers.
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF
FORT COLLINS as follows:
Section 1. That the City Council hereby makes and adopts the determinations and
findings contained in the recitals set forth above.
-2-
Section 2. That Subsection 26-711(a) of the Code of the City of Fort Collins is
hereby amended to read as follows:
Sec. 26-711. - Definitions; application.
(a) The following words, terms and phrases, when used in this Article, shall have the
meanings ascribed to them in § 26-1 and this Section:
Financial Officer shall mean the head of the Financial Administration Unit or the designated
representative of the Financial Officer.
Program assistance funds shall mean monies received through local, state, or federal grants,
credits, reimbursements, or other programs that provide financial support for qualified public
utility customers served by the City.
. . .
Section 3. That Subsection 26-712(a) of the Code of the City of Fort Collins is
hereby amended to read as follows:
Sec. 26-712. - Utility bill and account charges authorized; procedures.
(a) The fees and charges established by this Code for services from the electric, stormwater,
water and wastewater utilities may be billed together in one (1) utility bill with such fees and
charges separately itemized and shall be billed to utility users not less than once each month.
Service fees and charges for telecommunication facilities and services may be billed separately
or included on a combined utility bill with other utility services, and such amounts shall be
itemized separately and be payable in addition to all combined utility fees and charges. The
Financial Officer shall collect, receive and disburse all such fees and charges for the separate
utility funds in accordance with the Charter and related provisions of this Code. Other than when
applying program assistance funds restricted to specific utility products or services delivered to
qualified customers, customer utility payments shall be applied uniformly to all combined non-
telecommunication utility service fees and charges due.
. . .
Section 4. That Subsections 26-713 (c) and (e) of the Code of the City of Fort Collins
are hereby amended to read as follows:
Sec. 26-713. - Due date; delinquency.
. . .
(c) In case the user of any non-telecommunication services utility fails to pay a utility bill by
the due date or fails to pay any other utility fee, charge, deposit or assessment prescribed by this
Code, the City may disconnect either or both of the user's water and electric services to the
-3-
property and has the right to enter upon private property to accomplish this purpose. Such
disconnections shall nevertheless be conditioned upon the terms associated with program
assistance funds received by the City on behalf of qualified customers.
. . .
(e) Unless otherwise required by terms associated with program assistance funds received by
the City on behalf of qualified customers, tThe terminated utility service will be restored after the
customer or subscriber has paid in full all delinquent fees and charges, plus collection costs,
together with the expenses of discontinuing and restoring service, including costs of after-hours
labor and materials and specified fees, as provided in this Article.
. . .
Introduced, considered favorably on first reading, and ordered published this 1st day of
September, A.D. 2020, and to be presented for final passage on the 15th day of September, A.D.
2020.
__________________________________
Mayor
ATTEST:
_______________________________
City Clerk
Passed and adopted on final reading on the 15th day of September, A.D. 2020.
__________________________________
Mayor
ATTEST:
_______________________________
City Clerk