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Home My WebLink AboutCOUNCIL - AGENDA ITEM - 11/04/2020 - ITEMS RELATING TO THE 2020 FEE UPDATES Agenda Item 5 Item # 5 Page 1 AGENDA ITEM SUMMARY November 4, 2020 City Council STAFF Jennifer Poznanovic, Project and Revenue Manager Judy Schmidt, Legal John Duval, Legal SUBJECT Items Relating to the 2020 Fee Updates. EXECUTIVE SUMMARY A. First Reading of Ordinance No. 129, 2020, Amending Chapter 7.5 of the Code of the City of Fort Collins to Revise the Capital Expansion Fees and the Transportation Expansion Fee. B. First Reading of Ordinance No. 130, 2020, Amending Chapter 26 of the Code of the City of Fort Collins Regarding Calculation and Collection of Development Fees Imposed for the Construction of New or Modified Electric Service Connections. C. First Reading of Ordinance No. 131, 2020, Amending Chapter 26 of the Code of the City of Fort Collins to Revise Sewer Plant Investment Fees. D. First Reading of Ordinance No. 132, 2020, Amending Chapter 26 of the Code of the City of Fort Collins to Revise the Stormwater Plant Investment Fees. E. First Reading of Ordinance No. 133, 2020, Amending Chapter 26 of the Code of the City of Fort Collins to Revise Water Plant Investment Fees. F. First Reading of Ordinance No. 134, 2020, Amending Chapter 26 of the Code of the City of Fort Collins to Revise the Water Supply Requirements Fee. The purpose of this item is to review inflation updates effective January 1, 2021, associated with Electric Capacity fees, Water Supply Requirement fees, Water, Sewer and Stormwater Plant Investment fees, Capital Expansion fees and Transportation Capital Expansion fees. Inflation updates are 2.7% for Capital Expansion fees, 0.6% for Transportation Capital Expansion fees, and 3% for Utility fees. Coordination of Council-approved fees began in 2016 to provide a more holistic view of the total cost impact. Previously, fee updates were presented to Council on an individual basis. After the 2020 fee update, fee phasing will be complete with regular two and four-year cadence updates beginning in 2021. STAFF RECOMMENDATION Staff recommends adoption of the Ordinances on First Reading. BACKGROUND / DISCUSSION Since the fall of October 2016, staff has worked to coordinate the process for updating all new development- related fees that require Council approval. This resulted in the completion of two studies, the Capital Agenda Item 5 Item # 5 Page 2 Expansion Fee Study in August 2016 (CEF Study) for the neighborhood park, community park, fire, police and general government capital expansion fees (CEFs) and the Transportation Capital Expansion Fee Study in April 2017 (TCEF Study) for the transportation capital expansion fee (TCEF). Development related fees that are approved by Council are CEFs, the TCEF, and five Utility Fees. Previously, fee updates were presented to Council on an individual basis. However, it was determined that updates should occur on a regular two and four-year cadence and fees updates should occur together each year to provide a more holistic view of the impact of any fee increases. Fee coordination includes a detailed fee study analysis for CEFs, the TCEFs and Development Review/Building Fees every four years. This requires an outside consultant through a request for proposal (RFP) process where data is provided by City staff. Findings by the consultant are also verified by City staff. For Utility Fees, a detailed fee study is planned every two years. These are internal updates by City staff with periodic consultant verification. In the future, fee study analysis will be targeted in the odd year before Budgeting for Outcomes (BFO). In years without an update, an inflation adjustment occurs. Below is the current fee timeline: Phase I of the fee updates included CEFs, TCEFs, Electric Capacity Fees, and Raw Water/CIL (now Water Supply Requirement) fees and were adopted in 2017. Phase II included Wet Utility PIFs and step II of CEFs and TCEFs, which were approved in 2018. Development review and building permit fees were originally included in Phase II but were de-coupled from the 2018 update. Agenda Item 5 Item # 5 Page 3 Due to the concern in the development and building community around fee changes, Council asked for a fee working group to be created to foster a better understanding of fees prior to discussing further fee updates. In August of 2017, the Fee Working Group commenced and was comprised of a balanced group of stakeholders - citizens, business-oriented individuals, City staff and a Council liaison. The Fee Working Group met 14 times and was overall supportive of the fee coordination process and proposed fee updates. The 2019 phase III update included Development Review fees, Electric Capacity fees, Water Supply Requirement fees, Water, Sewer and Stormwater Plant Investment Fees and Step III of the 2017 Capital Expansion Fees. 2020 fee updates (effective January 1, 2021) include: Building Development fees, Electric Capacity fees, Water Supply Requirement fees, Water, Sewer and Stormwater Plant Investment fees, Capital Expansion fees and Transportation Capital Expansion fees. All fee updates are inflation-only adjustments except for Building Development fees. Building Development fees were planned to update on April 1, 2020; however, due to software (Accela) upgrades and conflicts, implementation was delayed. Flat fees, Engineering Inspection, and Erosion Control fees will be effective January 1, 2021 while Building, Tenant Improvements, and Planning fees will be effective January 1, 2022. The CPI-U index for Denver-Aurora-Lakewood is used for CEF inflation (2.7%) and the Engineering News Record for TCEFs (0.6%). Utility fees (3%) use a 3-year average of the Engineering News Record Construction Cost Index. After the 2020 fee update, fee phasing will be complete with regular two and four-year cadence updates beginning in 2021. CITY FINANCIAL IMPACTS Fee updates will result in an increase to fee payers. BOARD / COMMISSION RECOMMENDATION Fee updates for 2020 were discussed with Council Finance Committee in October and recommended to be presented for First Reading in November 2020. ATTACHMENTS 1. Council Finance Committee Minutes - October 2019 (PDF) 2. Council Finance Committee Minutes - October 2020 (PDF) 3. Powerpoint Presentation (PDF) Finance Administration 215 N. Mason 2nd Floor PO Box 580 Fort Collins, CO 80522 970.221.6788 970.221.6782 - fax fcgov.com Finance Committee Meeting Minutes 10/21/19 10 am - noon CIC Room - City Hall Council Attendees: Mayor Wade Troxell, Ross Cunniff, Ken Summers Staff: Mike Beckstead, Travis Storin, Carol Webb, Theresa Connor, Lance Smith, Shane Boyle, Dean Klingner, Tom Leeson, Noelle Currell, Jennifer Poznanovic, Kelley Vodden, Jennifer Selenske, Kerri Ishmeal, Renee Callas, John Duval, Tyler Marr, Dave Lenz, Jo Cech, Katie Ricketts, Zach Mozer, Josh Birks, Victoria Shaw, Shannon Hein, Clay Frickey, Carolyn Koontz Others: Kevin Jones, Chamber of Commerce Dale Adamy, R1st.org ______________________________________________________________________________ Meeting called to order at 10:05 am Approval of Minutes from the August 19, 2019 Council Finance Committee Meeting. Ken Summers moved for approval of the minutes as presented. Ross Cunniff seconded the motion. Minutes were approved unanimously. A. Development Review Fee Update Tom Leeson, Director, Community Development & Neighborhood Services Noelle Currell, Manager, Financial Planning and Analysis Jennifer Poznanovic, Sr. Manager, Sales Tax / Revenue SUBJECT FOR DISCUSSION Development Review and Building Permit Fees Study EXECUTIVE SUMMARY As part of the City’s coordinated fee update process, City Staff along with MGT Consulting Group (MGT) conducted an in-depth analysis of the City’s development review and building permit fees. This study evaluated whether these fees are set at appropriate levels, inclusive of all costs, consistent with the City’s goals for cost recovery, and how fees compare to other communities regionally. Due to the complexities, processes and number of departments involved in development review and the permitting, the Council Finance Committee requested an advisory committee be created to better understand potential impacts of fee and methodology changes and collect feedback and advisement regarding proposed changes. ATTACHMENT 1 2 Staff has extensively evaluated the methodology for calculating fees and is requesting feedback on the change in methodology for calculating building permit and plan check fees from using the valuation of a project to using the square footage of a project (not all project types apply), a flat fee for over-the-counter permits, addition of a new erosion control and storm water inspection fees, as well as updates to current development review fees based on a simplified fee schedule. No methodology changes are being requested for development review fees; however, timing of collection of Utilities development review is being shifted to when services are provided. GENERAL DIRECTION SOUGHT AND SPECIFIC QUESTIONS TO BE ANSWERED Is Council Finance supportive of updated fees and methodology? Is Council Finance supportive of new Erosion Control & Stormwater Inspection fees? BACKGROUND/DISCUSSION Development Review Fee Advisory Committee A Development Review Fee Advisory Committee was formed based on Council Finance Committee’s directive to better understand how to simplify the current fee schedule. This included calculation of fees, timing of collection, validation and acceptance of a new methodology and other recommendations. This balanced group was comprised of industry professionals, Fort Collins Citizens, and City staff. Advisory Committee List: A Blend of Citizens, Industry and Staff Industry: Jennifer Bray: Affordable Housing Board Adam Eggleston: Ft. Collins Board of Realtors Doug Braden: Home Builders Association Citizen: Matt Robenalt: Downtown Development Authority Cathy Mathis: Local Legislative Affairs Committee, Development Consultant Braulio Rojas: South Ft. Collins Business Association Linda Stanley: Economic Advisory Commission City Staff: Mike Beckstead: Project Sponsor Russ Hovland: Fee Owner Building Permit Fees Tim Kemp: Fee Owner Engineering Fees Noelle Currell: Project Manager Tom Leeson: Fee Owner Development Review Fees Overview of Meetings and Topics Covered The group convened for five (5) two-hour sessions starting in May 2019 with the final meeting September 2019. Fee History Currently, there are numerous fees across CDNS (Community Development and Neighborhood Services), Utilities, and Engineering, spread over three (3) types of fees; development review, infrastructure inspection (engineering), and building permit. Examples include building permit fee, plan review fee, transportation development review, over-the-counter permits, and engineering inspection fees. The current percentage for cost recovery is set at 100%. 3 The City Manager is authorized to set fees based on the costs of providing development and building permit review services, pursuant to City Code Sec. 7.5-2. The Land Use Code (Sec. 2.2.3.D) establishes the cost recovery model for development and building permit fees: 1. Recovery of Costs. Development review fees are hereby established for the purpose of recovering the costs incurred by the City in processing, reviewing and recording applications pertaining to development applications or activity within the municipal boundaries of the City, and issuing permits related thereto. The development review fees imposed pursuant to this Section shall be paid at the time of submittal of any development application, or at the time of issuance of the permit, as determined by the City Manager and established in the development review fee schedule. 2. Development Review Fee Schedule. The amount of the City's various development review fees shall be established by the City Manager and shall be based on the actual expenses incurred by or on behalf of the City. The schedule of fees shall be reviewed annually and shall be adjusted, if necessary, by the City Manager on the basis of actual expenses incurred by the City to reflect the effects of inflation and other changes in costs. At the discretion of the City Manager, the schedule may be referred to the City Council for adoption by resolution or ordinance. Fee Calculation Review To accurately calculate where fee levels should be set, an inclusive listing of fees was thoroughly reviewed, every staff member involved in a fee activity was identified, and staff members that complete fee related activities were interviewed to determine the amount of time spent per fee item. Calculations were carried out to determine the fully burdened cost of employees. Overhead calculations were also reviewed and included things like buildings, managers, and IT support. Fees were set based on the time and the overhead allocated. Validation steps were taken to ensure proper cost recovery, which included: • ensuring no individual groups were over-allocated (available work hours versus total time of fee activities) • estimating revenue forecasts based on 2018 volumes (ensuring revenue does not end higher than cost) • confirmation with management teams to ensure accurate allocation of each person’s time to the fees (e.g. only allocating 25% of some positions). Methodology Changes and Impacts Development Review Fees No methodology change for the development review fees (pre-building permit activity, such as Project Development Plan, Minor Amendment, Final Development Plan) is proposed. However, one goal in this area was to reduce the number of fees, through fee consolidation or deletion (e.g. Affected Property Owner mailing costs removed). Additional changes within the development review fees include adding staff members that are fully engaged in development review activities that have not historically been included within the fee calculations. This includes City Attorney’s Office staff, Forestry staff, and Parks Planning staff. Additionally, Utilities development review fees have historically been collected at time of Building Permit, and those will now be collected at time of development review application to more accurately reflect the time of service. The impacts of these changes are an increase in development review fees for all application types Infrastructure Inspection Fees No methodology change is proposed for the infrastructure inspection fees. These fees were last updated in 1997, so the impact of these changes is an increase in the infrastructure inspection fees. 4 Building Permit Fees Staff is proposing a methodology shift for new construction building permit fees from being based on valuation to square footage/building type. The square footage of a project is not subject to disagreements as it is a definite quantity provided within the application; it is known in the early phases of a project, so it provides a stronger basis for calculating accurate fee estimate. Additionally, square footage has a strong correlation to the amount of time it takes to review/process an application and the time it takes to complete inspections. To help with efficiency and overall fee consistency, over-the-counter permits will go to a flat fee versus valuation based (examples: residential roof, water heater, furnace). Staff time in this area is driven by type of work, not the value. Tenant finishes and remodels will remain valuation based. Valuation cost breakouts were updated based upon interviews with building inspectors with the result being a decrease in fees for these application types. It should be noted that sales and use tax is still based on valuation, so applicants will still need to provide the project valuation for tax purposes. The impacts of these changes, including shifting the timing of collection of the Utility development review fees, are a decrease in building permit fees. New Fees: Erosion Control & Storm Water Construction Inspection These are proposed new fees that will cover field inspection personnel. Currently, no fees are collected, and this activity is subsidized by the rate payers and not by established fees. Staff is requesting implementation of an erosion control fee & storm water infrastructure inspection fee to cover the costs of inspections that are currently being executed. The process completed by Utilities is as follows; Field verification by a City Stormwater Inspector is now required as stated in the project Development Agreement, City Land Use Code Section 3.3.2(E)(1)(e), and Fort Collins Stormwater Criteria Manual Ch 3, Sec 3.1). Project managers should request inspections prior to installation of stormwater features, or at a minimum, keep the City inspector up to date on scheduling. Inspections target the milestones listed in the feature’s corresponding construction checklist, which is submitted as part of the Site Grading and Drainage Certification (checklists may change as the program evolves). As part of the certification process, certification checklist documentation is submitted to Utilities’ Water Engineering Department and requires acknowledgment that verification occurred at the intervals specified therein. Utilities Light and Power are not included in this study. Developer/Builder Cost Impacts In order to understand/quantify the impact on development, staff did a comparative study on existing developments. Samples were chosen based upon common application types including: Infill development, Single Family Homes, Multi-family, Affordable Housing, Commercial Buildings and Industrial Uses. Fees within this study generally increased ~30%, however as part of the overall fee stack, the updates resulted in minor changes (from less than 1% to 10% of total City Fees). Additional details are included in attachment 1. 5 City Cost/Revenue Impacts Since the fees charged are intended to cover the costs to provide the service, an analysis was done to evaluate the costs to the City of development review, infrastructure inspection, and building permits based on the 2018 volume of permit applications. In 2018, the City collected $5.6 million in development related fees, which were intended to cover the costs of those services. The actual total cost in 2018 was closer to $7.6M. The greatest impact on collections is seen in the Utilities Funds and the Transportation fund. In Utilities the changes are driven by the timing of collection, updated cost inputs and addition of Erosion Control and Stormwater Infrastructure Inspections. Within the Transportation fund changes are driven primarily by the infrastructure inspections (which as noted had not had fee updates since 1997) and update to number of Transportation funded Development Staff (e.g. Traffic Engineers and Civil Engineers). Next Steps and Public Outreach Advisory Group Summary of Findings The group acknowledges and agrees with the overall methodology changes, fee structure, calculations and inputs. The group agrees that though there are increases in some areas, overall the changes make sense and fees will be less complicated. The group agrees with 100% cost recovery. Fees must reflect the cost it takes to provide the service and nothing more. The group notes that any fee increases, particularly to housing, are a concern. 6 Discussion / Next Steps; Separate fee for each permit application type Consolidated and reduced total number of fees from 150 to 106 Mike Beckstead; they have also created a fee calculator which makes it easier early on in the process to understand how much and when fees will be payable. This is a benefit and a simplification. Ken Summers; what are the overhead costs? Tom Leeson; direct cost, hourly rate plus overhead costs such as vehicles and uniforms and admin costs. More detail to follow later in the presentation. Mike Beckstead; we approached this with 100% cost recovery, and we looked at it not just direct costs but including health benefits, retirement contributions, materials used in process and support costs that go with it. Ken Summers; Is there double accounting? Are we going to reduce the allocation we need for legal? Mike Beckstead; for the Development Plan Review and Legal -both come out of the General Fund so the revenue we collect doesn’t go into a specific fund - all flows into the General Fund. We don’t segregate the funding or the expenditures that way because they are co-mingled in the General Fund. Ross Cunniff; what are the pros and cons of creating a dedicated mini fund for obvious transparency? I like the 100% cost recovery but the responsibility that comes with that is for us to ensure that we are not double counting as well as that we are working to try to constrain those costs to exactly what they need to be. 7 Mike Beckstead; we are having those conversations - we had provided Council some information before trying to estimate costs - this has always been very challenging as it is diffused across the organization. There is clear benefit to going to a dedicated fund - I am not ready to recommend one way or the other yet The more specific the revenue is the more restrictive we are. We currently have 41 reportable funds - our closest neighbor /peer has 21-25 range. Within Finance, we are discussing – what is the right mix of dedicated / restricted fund revenue? There is complexity and overhead that goes with each fund - but good to discuss this during BFO. We have 1 City Attorney who spends 100% of his time on Development Review Applications. 2.5 FTEs from Forestry as well Building Permit Fees - we changed the way we calculate – now based on square footage not valuation - Have a fair amount of over the counter fees – simple flat rate fees. Valuation is not going away because we charge sales and use tax. Ross Cunniff; future number - $2M subsidy towards development review - $1.6M from other entities Stormwater rates were higher because we weren’t capturing these fees Mike Beckstead; a bigger portion of it is actually transportation and utilities - General Fund subsidy The Committee reviewed slides illustrating several different kinds of development and the associated fees and impact of the recent changes; Infill/ Mixed Use - Uncommon, Residential Single Family - Timbervine Residential Multi-Family -The Wyatt Affordable Housing - Village on Redwood, Commercial - Harmony Commons Industrial - South College Storage= 8 Tom Leeson; we reviewed this information with Darin Atteberry last week and he administratively approved the process changes. The intent is to do an Adoption in Q1 2020 to be effective at the beginning of Q2 2020. Mike Beckstead; we have this scheduled to come back to Council Finance in December if we get controversy out of outreach, but if the future outreach is similar to what we have had in the past, I am not sure we would need to come back to Council Finance - I wanted to see if there was Committee concurrence on this approach. Ross Cunniff; a memo would be sufficient. Mayor Troxell; I have a question about the fee stack, conversations going around to try to get some alignment - continue that in support of our residents - meaningful adjustments in the right direction. I appreciate the amount of work that has gone into this Mike Beckstead; in 2016 there was a request to take this on because of the sporadic nature of the updates which would come to you at different times - This was great guidance and I applaud Jennifer and her predecessors for the work that has gone into the organization of this - it has taken us 3 years to get through the first round. Starting in 2021, we will be on a 4-year cadence for development fees and 2-year review cadence for utility fees. We had big increases in impact fees in 2017 - $ value increases here but now that we are on a prescribed cadence with routine reviews, we will minimize any big pops. Ross Cunniff; community measured approach - In answer to questions for Council Finance, I am a yes and a yes This presentation answered a lot of questions I had and makes it very clear what we are doing and looking for is to specifically support the operations and funding of the development review process. We will want to ratchet up to look at how we could reduce costs – this is not intended to be punitive – it is making sure that we are diligently working to make those costs as low as practical. Mayor Troxell; I appreciated the specific examples of different types of development - very helpful 9 Ken Summers; I have a question regarding slide 4 (see above) under Development Construction Permit you have Erosion Control and Stormwater – is the proposal to pull these out and put them somewhere else? Tom Leeson; we are not currently charging for the Erosion Control or stormwater efforts we do as part of the Development Construction Permit. Erosion Control - we have 2 full time dedicated employees who go out to inspect multiple times during the construction phase. The Stormwater -more of the final stormwater measures that put in that also require inspection prior to occupancy - we are proposing to add those into the Infrastructure Inspection Fees. Mike Beckstead; the costs have always been there, but they were being paid for by the rate payers of those utilities - we didn’t have a unique fee to charge the developer for those activities - Tom Leeson; the development review center will be reimbursing utilities for that time - that will go into the waste / storm water fund - in essence that fund has been subsidizing the Development Review effort -this has been happening for many years. Mike Beckstead; the next time Lance does his cost of service / rate analysis he will take all of those into consideration – we have a new revenue source for those kinds of costs which will have an impact on future rate requests - to the degree that it is incremental and isolated I am not sure - I would have to go back and talk with Lance. That is where the other side of this transaction will occur. Ken Summer; thinking about erosion control measures - seems that these are already tightly regulated at the state level -so, with all the current state regulations in place in terms of keeping dirt on the site and fencing, etc. - Have there been problems with erosion in the past? Theresa Connor; The city has an S4 Permit that allows our storm water to drain directly into the river and does not need to go through our sanitary sewer system. Because of having that permit we have to do erosion control inspection; we need to have this in place in order to stay in compliance this is a requirement to do construction inspection. Driven by development taking place in the community. Ken Summers; I see a couple things happening – for example the $5M we lent to the URA, etc. – feels a bit like we are shaking the couch cushions looking for more money - wondering what are the best ways for us to increase our revenue instead of nickel and diming, fees etc. I think we need to be looking at some efficiencies in this area as well - I want to be comfortable that we have some safeguards in place and are looking at efficiencies - be conscientious in terms of how many visits, how much time it takes. If there is an inspector who is consistently finding lots of problems - the problem may be with the inspector. These are legitimate concerns from the city standpoint. Theresa Connor; we do have stormwater and the municipal separate stormwater permit through the state and the EPA. We are finding the better part of prescriptive requirements from the state recently on erosion control, visiting every few weeks based on the conditions on the site - so there are some very prescriptive requirements for us from federal and status regulators that we are doing and have been doing for some time. We are constantly looking for efficiency measures out of that and are open to new ideas but we have had these 2 positions on erosion control compliance for some time and tt protects our water ways - an ounce of prevention is worth a pound of cure – especially in erosion control keeping that dirt on site will protect our streams - we do comply with prescriptive requirements. Ross Cunniff; can you speak to what efforts you take to oversee and audit. 10 Tom Leeson; this question has come up a couple of times in our outreach and is a fair question because we are charging based on time – one of the complaints was if you were more efficient you could charge us less – we took that very seriously and in parallel to this effort, we have spent last 2 years implementing the Lean Methodology on every development application type - trying to get as efficient as we can in terms of development review and our permit processing. We have seen an appropriation recently for our Accela program (the software program that administers all of the permits) was not functioning at a level that could make us as efficient as we want to be – so we are spending a lot of time going through the bidding process to identify the business process and get that fully integrated into Accela - and we are developing a set of metrics around development review so we can understand how long each step should take – how long the review of each stage takes. Ken Summers; thank you - I appreciate the reassurance that we have systems in place to monitor and that you are on top of it and it shows efficiencies. Sometimes that motivation isn’t as great for a government entity. Mayor Troxell; Baldrige looks at constant improvements - looking at best practices - by mentioning the Lean Methodology - government can run with efficiency and high performance and be very intentional – we have processed - recognize and make them better and that is built into the entire organization - talk about high performing government and set those expectations - this is one reason we get to a high level of trust with the community because you see activities happen for the purpose they are intended and frankly, I am proud Tom Leeson; getting into this new regular cadence for reviews will be a good cross check and will ensure that those fees are aligned with the processes we have. Mike Beckstead; to me the drivers of this fee increase are; 1) we have not updated some of these fees in a long time - some of the methodologies and the cost drivers are different now 2) some of the allocations of cost only assumed a 50% absorption which has now gone to 100% 3) there are the 2 new utility fees that used to be paid by utility rate payers and are now paid by the development fees. There is a series of methodology and process drivers that are really behind this - we saw the same thing in our Capital Expansion Fees in 2016-17 when we did a deep dive on those because they had not been updated in a while – I truly anticipate a much smoother trajectory going forward with the routine updates and we will avoid these price spikes from infrequent updates. Mayor Troxell; I appreciate Ken’s concern and this discussion - show me - what is your process and that is the evidence - we are obligated to do things that other governments have been mandated and that adds costs. Mayor Troxell; we are good Mike Beckstead; we will come back in December if need be or we will provide a memo at the minimum. Finance Administration 215 N. Mason 2nd Floor PO Box 580 Fort Collins, CO 80522 970.221.6788 970.221.6782 - fax fcgov.com Finance Committee Meeting Minutes October 19, 2020 10:00 am - noon Zoom Meeting Council Attendees: Mayor Wade Troxell, Ross Cunniff, Ken Summers, Susan Gutowsky Staff: Darin Atteberry, Kelly DiMartino, Travis Storin, Carrie Daggett, John Duval, Tyler Marr, Josh Birks, SeonAh Kendall, Theresa Connor, Jill Orpeza, Lawrence Pollack, Cody Forst, Blaine Dunn , Dave Lenz, Jo Cech, Zack Mozer, Kelley Vodden, Jordan Granath, Jennifer Poznanovic, Randy Reuscher, Shannon Hein, Noelle Currell, Mark Kempton, Victoria Shaw, Wendy Bircher Others: Kevin Jones, Chamber of Commerce ____________________________________________________________________________________ Meeting called to order at 10:03 am Approval of Minutes from the September 21, 2020 Council Finance Committee Meeting. Ken Summers moved for approval of the minutes as presented. Ross Cunniff seconded the motion. Minutes were approved unanimously. C. 2020 Fee Roadmap Jennifer Poznanovic, Sr. Revenue & Project Manager SUBJECT FOR DISCUSSION 220 Fee Roadmap EXECUTIVE SUMMARY Coordination of Council approved fees began in 2016 to provide a more holistic view of the total cost impact. Previously, fee updates were presented to Council on an individual basis. After the 2020 fee update, fee phasing will be complete with regular two and four-year cadence updates beginning in 2021. 2020 fee updates include: Building Development fees, Electric Capacity fees, Water Supply Requirement fees, Water, Sewer and Stormwater Plant Investment fees, Capital Expansion fees and Transportation Capital Expansion fees. GENERAL DIRECTION SOUGHT AND SPECIFIC QUESTIONS TO BE ANSWERED 1. Does Council Finance Committee support the proposed 2020 roadmap for fee updates? ATTACHMENT 2 2 BACKGROUND/DISCUSSION Since the fall of October 2016, staff has worked to coordinate the process for updating all new development related fees that require Council approval. This resulted in the completion of two studies, the Capital Expansion Fee Study dated August 2016 (CEF Study) for the neighborhood park, community park, fire, police and general government capital expansion fees (CEFs) and the Transportation Capital Expansion Fee Study dated April 2017 (TCEF Study) for the transportation capital expansion fee (TCEF). Development related fees that are approved by Council are CEFs, the TCEF, and five Utility Fees. Previously, fee updates were presented to Council on an individual basis. However, it was determined that updates should occur on a regular two and four-year cadence and fees updates should occur together each year to provide a more holistic view of the impact of any fee increases. Fee coordination includes a detailed fee study analysis for CEFs, the TCEFs and Development Review/Building Fees every four years. This requires an outside consultant through a request for proposal (RFP) process where data is provided by City staff. Findings by the consultant are also verified by City staff. For Utility Fees, a detailed fee study is planned every two years. These are internal updates by City staff with periodic consultant verification. In the future, fee study analysis will be targeted in the odd year before Budgeting for Outcomes (BFO). In years without an update, an inflation adjustment occurs. Below is the current fee timeline: 3 Phase I of the fee updates included CEFs, TCEFs, Electric Capacity Fees, and Raw Water/CIL and were adopted in 2017. Phase II included Wet Utility PIFs and step II of CEFs and TCEFs, which were approved in 2018. Development review and building permit fees were originally included in Phase II but were de-coupled from the 2018 update. Due to the concern in the development and building community around fee changes, Council asked for a fee working group to be created to foster a better understanding of fees prior to discussing further fee updates. In August of 2017, the Fee Working Group commenced comprised of a balanced group of stakeholders – citizens, business-oriented individuals, City staff and a Council liaison. The Fee Working Group met 14 times and was overall supportive of the fee coordination process and proposed fee updates. The 2019 phase III update included Development Review fees, Electric Capacity fees, Water Supply Requirement fees, Water, Sewer and Stormwater Plant Investment Fees and Step III of the 2017 Capital Expansion Fees. 2020 fee updates include: Building Development fees, Electric Capacity fees, Water Supply Requirement fees, Water, Sewer and Stormwater Plant Investment fees, Capital Expansion fees and Transportation Capital Expansion fees. All fee updates are inflation only adjustment except for Building Development fees. Building Development fees were planned to update on April 1, 2020; however, due to software (Accela) upgrades and conflicts implementation was delayed. The CPI-U index for Denver-Aurora-Lakewood is used for CEF inflation and the Engineering News Record for TCEFs. Utility fees use a 3-year average of the Engineering News Record Construction Cost Index. After the 2020 fee update, fee phasing will be complete with regular two and four-year cadence updates beginning in 2021. Below is the proposed 2020 fee roadmap: Discussion / Next Steps We plan to go to Council in November - all fees would be effective January 1, 2021 Ken Summers; as far as the roadmap is concerned - it is fine. Council will look at those fees in 2022 again – Plan to move forward seems to be on track Ross Cunniff; the roadmap makes sense The Fee Working Group is on hiatus right now? is that due to the pandemic? 4 Jennifer Poznanovic; we had the last Fee Working Group for the Building Development Fees and they did go through that whole process. There wouldn’t be a Fee Working Group going forward. Ross Cunniff; Would the Fee Working Group be reconvened again in 2022? The next Council would need to weigh in on reconvening the Fee Working Group. Ken Summers; what kind of inflationary rate? Jennifer Poznanovic; Capital Expansion Fees use the Denver/ Aurora / Lakewood CPI-U index which I believe is under 3% on CES Transportation and Utility Fees use the Engineering News Record Construction Cost Index Committee supports moving to a first reading on November 4th 1 2020 Fee Roadmap October 19, 2020 ATTACHMENT 3 Fees 2 •To support the cost of providing public services and additional infrastructure to support new development Why We Have Them •Can only be used for the stated purpose of each fee •Revenue source to build new and maintain assets and infrastructure How We Use Them Fee Coordination 3 Objective: •Review fee updates together to provide a holistic view of the total cost impact •Bring impact fees forward per a defined cadence….. 2 -4 years Type of Fee Fee Name Capital Expansion Neighborhood Park Capital Expansion Community Park Capital Expansion Fire Capital Expansion Police Capital Expansion General Government Capital Expansion Tr ansportation Utility Water Supply Requirement Utility Electric Capacity Utility Sewer Plant Investment Utility Stormwater Plant Investment Utility Water Plant Investment Building Development Development Review, Building Permit & Engineering Fees 2016 2017 2018 2019 2020 2021 Capital Expansion Fees Upda te Step II Step III Infl ation Upda te Transportati on CEFs Upda te Step II Infl ation Upda te El ectri c Capaci ty Fe es Upda te Up da te Infl ation Upda te Wate r Supply Require me nt Upda te Up da te Infl ation Upda te Wate r,Sewe r,Stormwater PIFs Up da te Up da te Infl ation Upda te Building De ve lopme nt Fees Up da te Upda te Fee Worki ng G roup Acti ve Acti ve Acti ve Fee Timeline 4 Detailed Fee Studies: •4 years for CEF, TCEFs & Development fees •2 years for Utility fees In years without updates inflation adjustment occurs Phase 1 Phase 2 Phase 3 Building Development Fees: •Approved by City Manager •Implementation delayed due to software (Accela) Flat fees, Engineering Inspection, and erosion control effective 1/2021 •Building, Tenant Improvements, and Planning will be effective 1/2022 Inflation: CPI-U index for Denver-Aurora-Lakewood for CEFs, Engineering News Record Construction Cost Index for TCEFs & Utility Fees 2020 Roadmap 5 •Phasing complete with regular two and four-year cadence •Most fee categories updates effective in 2021 •Three building development fee categories delayed to 2022 Octobe r Nove mber 1/1/2021 Capital Ex pansion Fees CF C Co uncil Effe cti ve Transportati on CEFs CF C Co uncil Effe cti ve El ectric Capaci ty Fees CF C Co uncil Effe cti ve Wate r Supply Require me nt CF C Co uncil Effe cti ve Wate r,Se we r,Stormwate r P IFs CF C Co uncil Effe cti ve Bu ilding Developme nt Fees CF C Ci ty Ma na ge r Effe cti ve Next Steps 6 Does Council Finance Committee support the proposed 2020 roadmap for fee updates? -1- ORDINANCE NO. 129, 2020 OF THE COUNCIL OF THE CITY OF FORT COLLINS AMENDING CHAPTER 7.5 OF THE CODE OF THE CITY OF FORT COLLINS TO IMPLEMENT THE PHASE III INCREASES FOR THE CAPITAL EXPANSION FEES AND INCREASE FOR INFLATION THE CAPITAL EXPANSION FEES AND THE TRANSPORTATION EXPANSION FEE WHEREAS, the City is a home rule municipality having the full right of self-government in local and municipal matters under the provisions of Article XX, Section 6 of the Colorado Constitution; and WHEREAS, among the City’s home rule powers is the power to regulate, as a matter of purely local and municipal concern, the development of real property within the City and establish impact fees for such development; and WHEREAS, the City Council has determined that new development should contribute its proportionate share of providing the capital improvements that are typically funded with impact fees; and WHEREAS, the City Council has broad legislative discretion in determining the appropriate funding mechanisms for financing the construction of public facilities in the City; and WHEREAS, in early 2016, City staff initiated a comprehensive review of its various impact fees now charged to new development, including its community parkland, neighborhood parkland, police, fire protection and general government capital expansion fees (collectively, “Capital Expansion Fees”), and the City’s street oversizing capital improvement expansion fee, now called the transportation expansion fee (“TEF”); and WHEREAS, as a result of that review, the City commissioned an impact fee study for the Capital Expansion Fees that has resulted in the “Capital Expansion Fee Study” dated August 2016 (the “CEF Study”), which has identified the need to increase such Capital Expansion Fees by various amounts; and WHEREAS, the City also commissioned an impact fee study for the TEF that has resulted in the “Transportation Capital Expansion Fee Study” dated April 2017 (the “TEF Study”), which has also identified the need to increase and decrease the TEF by various amounts depending on the type of development proposed; and WHEREAS, City Code Section 7.5-18 provides that the Capital Expansion Fees and the TEF shall also be increased or decreased annually for inflation; and WHEREAS, in 2017, City Council adopted Ordinance No. 049, 2017, implementing, beginning on October 1, 2017, the Phase I increases of the Capital Expansion Fees to 75% of the increased amounts recommended in the CEF Study and of the TEF to 80% of the increased -2- amounts recommended in the TEF Study, but fully implementing the recommended reductions to the TEF; and WHEREAS, in 2018, City Council adopted Ordinance No. 166, 2018, implementing, beginning on January 1, 2019, the Phase II increases of the Capital Expansion Fees to 90% of amounts recommended in the CEF Study, plus inflation, and of the TEF to 100% of the amounts recommended in the TEF Study, plus inflation; and WHEREAS, in 2019, City Council adopted Ordinance No. 130, 2019, implementing, beginning on January 1, 2020, the Phase III increases of the Capital Expansion Fees, plus inflation, and increasing the TEF for inflation only; and WHEREAS, this Ordinance increases the Capital Expansion Fees and the TEF for inflation only beginning on January 1, 2021; and WHEREAS, for the foregoing reasons, the City Council has determined that it is in the best interest of the City and its citizens and necessary for the protection of the public’s health, safety and welfare, that the Capital Expansion Fees and the TEF be increased as hereafter provided. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows: Section 1. That the City Council hereby makes and adopts the determinations and findings contained in the recitals set forth above. Section 2. That Section 7.5-28(a) of the Code of the City of Fort Collins is hereby amended to read as follows: Sec. 7.5-28. - Community parkland capital expansion fee. (a) There is hereby established a community parkland capital expansion fee which shall be imposed pursuant to the provisions of this Article for the purpose of funding capital improvements related to the provision of community parks, as such improvements may be identified in the capital improvements plan for community parkland. Such fee shall be payable prior to the issuance of any building permit for a residential structure. The amount of such fee shall be determined per dwelling unit as follows: 20192020 As of January 1, 20202021 Resid., up to 700 sq. ft. $2,326.002,619.00 $2,619.002,690.00 Resid., 701 to 1,200 sq. ft. 3,114.003,506.00 3,506.003,601.00 Resid., 1,201 to 1,700 sq. ft. 3,400.003,828.00 3,828.003,932.00 Resid., 1,701 to 2,200 sq. ft. 3,436.003,868.00 3,868.003,973.00 Resid., over 2,201 sq. ft. 3,830.004,312.00 4,312.004,429.00 -3- In the case of duplexes and multi-family structures, the amount of the fee for each dwelling unit shall be based upon the average size of the dwelling units contained within each such structure. Section 3. That Section 7.5-29(a) of the Code of the City of Fort Collins is hereby amended to read as follows: Sec. 7.5-29. - Police capital expansion fee. (a) There is hereby established a police capital expansion fee which shall be imposed pursuant to the provisions of this Article for the purpose of funding capital improvements related to the provision of police services, as such improvements may be identified in the capital improvements plan for police services. Such fee shall be payable prior to the issuance of any building permit for a residential, commercial or industrial structure. The amount of such fee shall be determined as follows: 20192020 As of January 1, 20202021 Resid., up to 700 sq. ft. $226.00254.00 $254.00261.00 Resid., 701 to 1,200 sq. ft. 305.00344.00 344.00353.00 Resid., 1,201 to 1,700 sq. ft. 332.00374.00 374.00384.00 Resid., 1,701 to 2,200 sq. ft. 337.00379.00 379.00390.00 Resid., over 2,200 sq. ft. 375.00423.00 423.00434.00 Commercial buildings (per 1,000 sq. ft.) 284.00320.00 320.00329.00 Industrial buildings (per 1,000 sq. ft.) 66.0074.00 74.0076.00 In the case of duplexes and multi-family structures, the amount of the fee for each dwelling unit shall be based upon the average size of the dwelling units contained within each such structure. Section 4. That Section 7.5-30(a) of the Code of the City of Fort Collins is hereby amended to read as follows: Sec. 7.5-30. - Fire protection capital expansion fee. (a) There is hereby established a fire protection capital expansion fee which shall be imposed pursuant to the provisions of this Article for the purpose of funding capital improvements related to the provision of fire services, as such improvements may be identified in the capital improvements plan for fire protection services. Such fee shall be payable prior to the issuance of any building permit for a residential, commercial or industrial structure. The amount of such fee shall be determined as follows: -4- 20192020 As of January 1, 20202021 Resid., up to 700 sq. ft. $403.00454.00 $454.00466.00 Resid., 701 to 1,200 sq. ft. 546.00614.00 614.00631.00 Resid., 1,201 to 1,700 sq. ft. 593.00668.00 668.00686.00 Resid., 1,701 to 2,200 sq. ft. 603.00679.00 679.00697.00 Resid., over 2,200 sq. ft. 671.00756.00 756.00776.00 Commercial buildings (per 1,000 sq. ft.) 508.00572.00 572.00588.00 Industrial buildings (per 1,000 sq. ft.) 119.00134.00 134.00137.00 In the case of duplexes and multi-family structures, the amount of the fee for each dwelling unit shall be based upon the average size of the dwelling units contained within each such structure. Section 5. That Section 7.5-31(a) of the Code of the City of Fort Collins is hereby amended to read as follows: Sec. 7.5-31. - General governmental capital expansion fee. (a) There is hereby established a general governmental capital expansion fee which shall be imposed pursuant to the provisions of this Article for the purpose of funding capital improvements related to the provision of general governmental services, as such improvements may be identified in the capital improvements plan for general governmental services. Such fee shall be payable prior to the issuance of any building permit for a residential, commercial or industrial structure. The amount of such fee shall be determined as follows: 20192020 As of January 1, 20202021 Resid., up to 700 sq. ft. $549.00619.00 $619.00635.00 Resid., 701 to 1,200 sq. ft. 741.00834.00 834.00857.00 Resid., 1,201 to 1,700 sq. ft. 809.00911.00 911.00935.00 Resid., 1,701 to 2,200 sq. ft. 821.00925.00 925.00950.00 Resid., over 2,200 sq. ft. 914.001,029.00 1,029.001,057.00 Commercial buildings (per 1,000 sq. ft.) 1,389.001,564.00 1,564.001,606.00 Industrial buildings (per 1,000 sq. ft.) 327.00369.00 369.00379.00 In the case of duplexes and multi-family structures, the amount of the fee for each dwelling unit shall be based upon the average size of the dwelling units contained within each such structure. Section 6. That Section 7.5-32 of the Code of the City of Fort Collins is hereby amended to read as follows: -5- Sec. 7.5-32. - Transportation expansion fee. There is hereby established a transportation expansion fee which shall be imposed pursuant to the provisions of this Article for the purpose of funding transportation improvements related to the provision of transportation services. Such fees shall be payable prior to the issuance of any building permit for a residential, commercial or industrial structure. These fees shall be deposited in the “transportation improvements fund” established in § 8-87. The amount of such fee shall be determined as follows: TRANSPORTATION EXPANSION FEE SCHEDULE 20192020 As of January 1, 20202021 Resid., up to 700 sq. ft. $2,321.002,336.00 $2,336.002,349.00 Resid., 701 to 1,200 sq. ft. 4,310.004,338.00 4,338.004,362.00 Resid., 1,201 to 1,700 sq. ft. 5,596.005,632.00 5,632.005,664.00 Resid., 1,701 to 2,200 sq. ft. 6,543.006,586.00 6,586.006,623.00 Resid., over 2,200 sq. ft. 7,014.007,059.00 7,059.007,099.00 Commercial 8,539.008,594.00 8,594.008,642.00 Office and Other Services 6,291.006,331.00 6,331.006,367.00 Industrial/Warehouse 2,030.002,043.00 2,043.002,055.00 Section 7. That Section 7.5-71(b) of the Code of the City of Fort Collins is hereby amended to read as follows: Sec. 7.5-71. - Neighborhood parkland capital expansion fee. (b) The amount of the fee established in this Section shall be determined for each dwelling unit as follows: 20192020 As of January 1, 20202021 Resid., up to 700 sq. ft. $1,647.001,855.00 $1,855.001,905.00 Resid., 701 to 1,200 sq. ft. 2,205.002,483.00 2,483.002,550.00 Resid., 1,201 to 1,700 sq. ft. 2,408.002,712.00 2,712.002,785.00 Resid., 1,701 to 2,200 sq. ft. 2,433.002,740.00 2,740.002,814.00 Resid., over 2,200 sq. ft. 2,712.003,053.00 3,053.003,136.00 -6- Introduced, considered favorably on first reading, and ordered published this 4th day of November, A.D. 2020, and to be presented for final passage on the 17th day of November, A.D. 2020. __________________________________ Mayor ATTEST: _______________________________ City Clerk Passed and adopted on final reading on the 17th day of November, A.D. 2020. __________________________________ Mayor ATTEST: _______________________________ City Clerk -1- ORDINANCE NO. 130, 2020 OF THE COUNCIL OF THE CITY OF FORT COLLINS AMENDING CHAPTER 26 OF THE CODE OF THE CITY OF FORT COLLINS REGARDING CALCULATION AND COLLECTION OF DEVELOPMENT FEES IMPOSED FOR THE CONSTRUCTION OF NEW OR MODIFIED ELECTRIC SERVICE CONNECTIONS WHEREAS, the City Council is empowered and directed by Article XII, Section 6, of the City Charter to fix, establish, maintain and provide for the collection of such rates, fees or charges for utility services furnished by the City as will produce revenues sufficient to pay the costs, expenses and other obligations of the electric utility, as set forth therein; and WHEREAS, pursuant to City Code Sections 26-473 through 26-475, the City imposes development fees for new or modified electric service connections, including an Electric Capacity Fee (“ECF”) and a Building Site Charge (“BSC”); and WHEREAS, the ECF is a one-time charge designed to recover the initial cost of adding new development to the electric system, and the BSC is designed to recover actual time and materials costs associated with building on site electric facilities at the specific development; and WHEREAS, the ECF and BSC together represent the total electric plant investment fee (PIF) for new development; and WHEREAS, Fort Collins Utilities staff uses an approved cost allocation methodology to calculate ECF and BSC to assign costs based on actual system value, i.e. the “buy-in” approach also used to calculate service connection fees for water and wastewater services; and WHEREAS, the values and costs used in applying this cost allocation methodology are updated on a two-year cycle; and WHEREAS, the Energy Board considered the proposed 2021 ECF and BSC inflation- only-based rate adjustments at its meeting on October 8, 2020, and recommended approval of the adjustments; and WHEREAS, based on the foregoing, it is the desire of the City Council to amend Chapter 26 of the City Code to update the values and costs applied in calculating ECF and BSC for new or modified electric service connections. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows: Section 1. That the City Council hereby makes and adopts the determinations and findings contained in the recitals set forth above. Section 2. That Section 26-474(a), (b) and (d) of the Code of the City of Fort Collins are hereby amended to read as follows: -2- Sec. 26-474. Residential electric development fees and charges. a) An Electric Capacity Fee ("ECF"), calculated as set forth in this Section and representing the cost to construct the electric distribution system infrastructure for a new or modified residential service shall be paid prior to the scheduling of any construction work required to provide said service. The ECF shall be determined based upon the main disconnect size (not fuse sizing) and the ECF charges in effect at the time of full payment. In the event of a customer request for revision to the system requirements for a new or modified service, construction of infrastructure improvements will cease until the customer has made payment in full of an updated ECF, including any increased construction costs associated with the revised system requirements; such increased amount, if any, shall be paid at the ECF rates in effect at the time it is paid in full. (b) The ECF shall be the total of the dwelling unit charge and systems modification charge, to be determined as follows: (1) The dwelling unit charge shall be as follows: a. For a detached single-family panel size with one hundred fifty (150) amp service (nonelectric heat), per dwelling unit $1,563 $1,610 b. For a detached single-family panel size with two hundred (200) amp service $1,967 $2,026 c. For a detached single-family with electric heat, per dwelling unit $2,587 $2,664 d. For a duplex or multi-family panel size with one hundred fifty (150) amp service (non-electric heat), per dwelling unit $1,382 $1,423 e. For a duplex multi-family panel size with two hundred (200) amp service or with one hundred fifty (150) amp service with electric heat, per dwelling unit $2,108 $2,172 . . . (d) A Building Site Charge (“BSC”) for any new or modified residential service shall consist of the total of the applicable charges as described in this Subsection (d), and shall be paid as specified herein. -3- . . . (2) When any new or modified residential service requires installation by the Utility of secondary service the BSC shall include a secondary service charge (SSC), and shall be paid at the time of building permit and based upon the current rates as of the time of issuance of the building permit. The SSC for detached single-family and duplex residences shall be the total of the secondary service charges, determined as follows: a. The secondary service charge shall be as follows: Secondary Service Size Charge (up to 65 feet) Plus Per-Foot Charge for Each Foot Over 65 4/0 service $1,248.00$1,364.00 $8.70$10.12/Foot 4/0 Mobile Home Service $987.00$1,060.00 N/A . . . Section 3. That Section 26-475(a), (b) and (d) of the Code of the City of Fort Collins is hereby amended to read as follows: Sec. 26-475. Nonresidential electric development fees and charges. (a) An Electric Capacity Fee ("ECF"), calculated as set forth in this Section and representing the cost to construct the electric distribution system infrastructure for a new or modified nonresidential service shall be paid prior to the scheduling of any construction work required to provide such service. The ECF shall be determined based upon the main disconnect size (not fuse sizing) amps for each proposed meter, calculated individually then aggregated, and the ECF charges in effect at the time of full payment. The customer shall also be responsible for secondary service installation from the point of delivery to the service panel. In the event of a customer request for revision to the system requirements for a new or modified service, construction of infrastructure improvements will cease until the customer has made payment in full of an updated ECF, including any increased construction costs associated with the revised system requirements; such increased amount, if any, shall be paid at the ECF rates in effect at the time it is paid in full. (b) The ECF shall be the total of the kVA service charge and systems modification charge, to be determined as follows: (1) The kVA service charge shall be determined as follows. -4- a. For customer electric loads served by the utility, the kVA service charge shall be calculated as follows: ECF shall be calculated as follows: secondary metered services $/kW = 341.28351.52 + 21.8222.47 x ln(kW) primary metered services $/kW = 227.04233.85 + 5.936.11 x ln(kW), Where ln is the natural logarithm kW is calculated as follows: three phase services kW = A x V x SQRT(3) x PF x 0.3/1000 single phase services kW = A x V x PF x 0.3/1000 Where A is the requested amperage, calculated individually and aggregated under subsection (a) above. V is requested line to line voltage. PF is the power factor, which is assumed to be 0.9. . . . (d) A Building Site Charge (“BSC”) for extending primary circuitry to the transformer for any new or modified nonresidential service shall be invoiced and paid in the same manner and at the same time as the ECF is invoiced and paid pursuant to § 26- 475(a). The BSC shall be the total of the primary circuit charge, transformer installation charge and any additional charges, determined as follows: (1) The primary circuit charge for service from the utility source to the transformer shall be as follows: a. For single-phase service, per foot of primary circuit $18.54 $18.65 b. For three-phase service, per foot of primary circuit $27.61 $27.81 (2) The transformer installation charge shall be as follows: a. For single-phase service, per transformer $1,708.51 $1,653.30 -5- b. For three-phase service, per transformer $3,166.54 $3,230.37 . . . Section 4. That the modifications set forth above shall be effective for all fees paid on or after January 1, 2021. Introduced, considered favorably on first reading, and ordered published this 4th day of November, A.D. 2020, and to be presented for final passage on the 17th day of November, A.D. 2020. __________________________________ Mayor ATTEST: _______________________________ City Clerk Passed and adopted on final reading on the 17th day of November, A.D. 2020. __________________________________ Mayor ATTEST: _______________________________ City Clerk -1- ORDINANCE NO. 131, 2020 OF THE COUNCIL OF THE CITY OF FORT COLLINS AMENDING CHAPTER 26 OF THE CODE OF THE CITY OF FORT COLLINS TO REVISE SEWER PLANT INVESTMENT FEES WHEREAS, the City Council is empowered and directed by Article XII, Section 6 of the Charter of the City of Fort Collins, to by ordinance from time to time fix, establish, maintain, and provide for the collection of such rates, fees or charges for water and for other utility services furnished by the City as will produce revenues sufficient to pay the costs, expenses, and other obligations as set forth therein; and WHEREAS, Article IV, Chapter 26 of the City Code establishes and sets forth the wastewater utility as a utility service furnished by and an enterprise of the City; and WHEREAS, City Code Sections 26-283 and 26-284 provide for sewer plant investment fees (“SPIFs”) to be based on and used for growth-related capital expansion costs of wastewater collection, transmission, treatment, and administrative facilities that are reasonably related to the overall costs of and required in providing wastewater services to serve new development; and WHEREAS, City Code Section 26-283 further requires that the City Manager annually review the parameters and rates of the SPIFs and also requires that the City Manager present such fees to the City Council for approval no less frequently than biennially; and WHEREAS, the City Manager and City staff have also recommended to the City Council adjustment of the SPIFs; and WHEREAS, the Water Board considered the proposed SPIFs inflation-only-based adjustments at its meeting on September 17, 2020, and recommended approval of the proposed adjustments; and WHEREAS, based on the foregoing, City Council desires to amend Chapter 26 of the City Code to adjust the scope and rate of the PIFs as set forth herein. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows: Section 1. That the City Council hereby makes any and all determinations and findings contained in the recitals set forth above. Section 2. That Section 26-284 of the Code of the City of Fort Collins is hereby amended to read as follows: Sec. 26-284. - Sewer plant investment fees and surcharges established. (a) The schedule of sewer plant investment fees, subject to the exceptions and additional requirements provided in this Section, is as follows: -2- Category SPIF A Single-family Per dwelling $3,590.00 $3,698.00 B and C Duplex and Multi-family Per each dwelling unit or mobile home space $2,590.00 $2,668.00 D, E, F Non-residential and Industrial Water meter size (inches) Fee Fee ¾ $7,710.00 $7,941.00 1 $17,190.00 $17,706.00 1½ $32,350.00 $33,321.00 2 $67,120.00 $69,134.00 3 and above Calculated on an individual basis based on peak wastewater flow (determined in the manner set forth hereinafter) but not less than the charge for a two- inch meter G User outside Same as equivalent category, plus any special sanitation district fees H Special Determined pursuant to Subsection (d) of this Section . . . (d) The amount of the plant investment fee and surcharge for each nonresidential surcharged user, users in Category H and any user that is expected to generate greater than its proportionate share of peak day flow at the treatment plant for the applicable category (including both contributed wastewater volume and volume related to infiltration and inflow), shall be calculated utilizing the following formula: SPIF = Site Flow × [Flow$ + (BOD × BOD$) + (TSS × TSS$)] + I&I Flow × [Flow$ + (200 mg/l × BOD$) + (250 mg/l × TSS$)] -3- Where: SPIF = Plant investment fee for Category H users and users discharging wastewater with average concentrations of BOD and/or TSS which exceed those average concentrations which are set forth in § 26-282(b) under Category E-34 Site Flow = The user's proportionate share of peak day flow at the treatment plant based on site flow discharge from user's site I&I Flow = That proportionate share of peak day flow due to infiltration and inflow as allocated to user's site flow discharge. I&I Flow is calculated based on Site Flow multiplied by 46.5% Flow$ = Unit cost of facilities attributable to treating wastewater flow Per Gallon $9.81 $10.10 BOD = Average BOD concentration for user category or measured BOD concentration for the user as determined in accordance with Subsection (c) of this Section, but not less than 200 mg/l BOD$ = Unit cost of facilities attributable to treating BOD Per mg/l $0.0147 $0.0151 TSS = Average TSS concentration for user category or measured TSS concentration for the user as determined in accordance with Subsection (c) of this Section, but not less than 250 mg/l TSS$ = Unit cost of facilities attributable to treating TSS Per mg/l $0.0117 $0.0121 . . . Section 4. That the modifications set forth above shall be effective for all fees paid on or after January 1, 2021. -4- Introduced, considered favorably on first reading, and ordered published this 4th day of November, A.D. 2020, and to be presented for final passage on the 17th day of November, A.D. 2020. __________________________________ Mayor ATTEST: _______________________________ City Clerk Passed and adopted on final reading on the 17th day of November, A.D. 2020. __________________________________ Mayor ATTEST: _______________________________ City Clerk -1- ORDINANCE NO. 132, 2020 OF THE COUNCIL OF THE CITY OF FORT COLLINS AMENDING CHAPTER 26 OF THE CODE OF THE CITY OF FORT COLLINS TO REVISE THE STORMWATER PLANT INVESTMENT FEES WHEREAS, the City Council is empowered and directed by Article XII, Section 6 of the Charter of the City of Fort Collins, to by ordinance from time to time fix, establish, maintain, and provide for the collection of such rates, fees or charges for water and for other utility services furnished by the City as will produce revenues sufficient to pay the costs, expenses, and other obligations as set forth therein; and WHEREAS, Article VII, Chapter 26 of the City Code establishes the stormwater utility as a utility service furnished by and an enterprise of the City; and WHEREAS, City Council has adopted stormwater basin and City-wide master plans recommending stormwater facilities necessary to provide for proper drainage and control of flood and surface waters within the City; and WHEREAS, in 1998, City Council adopted ordinance No. 168, 1998, determining that all lands within the City benefit by the installation of such stormwater facilities; and WHEREAS, existing stormwater rate payers have paid for the design, right of way, and construction of stormwater facilities identified in the drainage basin master plans that will benefit and be utilized by new development; and WHEREAS, City Council has determined that new development should pay its proportionate share of the costs of capital stormwater facilities in existence at the time of development in the form of a stormwater plant investment fee as established by City Code Section 26-512 (“Stormwater PIF”); and WHEREAS, City Code Section 26-511 requires that the City Manager review the rates and parameters for the Stormwater PIF annually and present them to City Council for approval no less frequently than biennially; and WHEREAS, the City Manager and City staff have also recommended to the City Council adjustment of the Stormwater PIF as set forth herein; and WHEREAS, the Water Board considered the proposed Stormwater PIF inflation-only- based adjustments for at its meeting on September 17, 2020, and recommended approval of the proposed adjustments; and WHEREAS, based on the foregoing, City Council desires to amend Chapter 26 of the City Code to adjust the scope and rate of the Stormwater PIF as set forth herein. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows: -2- Section 1. That the City Council hereby makes any and all determinations and findings contained in the recitals set forth above. Section 2. That Section 26-512 of the Code of the City of Fort Collins is hereby amended to read as follows: Sec. 26-512. - Stormwater plant investment fees established. . . . (2) Plant investment fee base rate. The stormwater plant investment fee base rate is hereby established as follows: Per gross acre of area $9,447 $9,730 . . . Section 3. That the modifications set forth above shall be effective for all fees paid on or after January 1, 2021. Introduced, considered favorably on first reading, and ordered published this 4th day of November, A.D. 2020, and to be presented for final passage on the 17th day of November, A.D. 2020. __________________________________ Mayor ATTEST: _______________________________ City Clerk Passed and adopted on final reading on the 17th day of November, A.D. 2020. __________________________________ Mayor ATTEST: _______________________________ City Clerk -1- ORDINANCE NO. 133, 2020 OF THE COUNCIL OF THE CITY OF FORT COLLINS AMENDING CHAPTER 26 OF THE CODE OF THE CITY OF FORT COLLINS TO REVISE WATER PLANT INVESTMENT FEES WHEREAS, the City Council is empowered and directed by Article XII, Section 6 of the Charter of the City of Fort Collins, to by ordinance from time to time fix, establish, maintain, and provide for the collection of such rates, fees or charges for water and for other utility services furnished by the City as will produce revenues sufficient to pay the costs, expenses, and other obligations as set forth therein; and WHEREAS, Article III, Chapter 26 of the City Code establishes and sets forth the water utility as a utility service furnished by and an enterprise of the City; and WHEREAS, City Code Sections 26-120 and 26-128 provide for water plant investment fees (“WPIFs”) to be based on and used for growth-related capital expansion costs of water supply, storage, transmission, treatment and distribution, and administrative facilities that are reasonably related to the overall costs of and required in providing water services to serve new development; and WHEREAS, City Code Section 26-120 further requires that the City Manager annually review the parameters and rates of the WPIFs and also requires that the City Manager present such fees to the City Council for approval no less frequently than biennially; and WHEREAS, the City Manager and City staff have also recommended to the City Council adjustment of the WPIFs, as set forth herein; and WHEREAS, the Water Board considered the proposed WPIFs inflation-only-based adjustments at its meeting on September 17, 2020 and recommended approval of the proposed adjustments; and WHEREAS, based on the foregoing, City Council desires to amend Chapter 26 of the City Code to adjust the scope and rate of the WPIFs as set forth herein. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows: Section 1. That the City Council hereby makes any and all determinations and findings contained in the recitals set forth above. Section 2. That Section 26-128 of the Code of the City of Fort Collins is hereby amended to read as follows: -2- Sec. 26-128. Schedule C, water plant investment fees. The water plant investment fee prescribed in § 26-120 shall be payable by users both inside and outside of the City, as follows: (1) Single-family residential buildings. For a single-family residential lot greater than one-half (½) acre in size, the lot size shall be deemed to be one-half (½) acre for the purpose of this fee calculation. For each additional tap or meters larger than three-fourths (¾) inch, the nonresidential rate shall apply. a. For the first three-fourths-inch water tap or meter $730.00 $752.00 b. For the first one-inch water tap or meter to accommodate residential fire suppression systems based upon the criteria established in the International Building Code as adopted and amended pursuant to Chapter 5 of this Code. $1,237.00 $1,274.00 c. Plus, for each square foot of lot area $0.39 $0.40 (2) Residential buildings of two (2) or more dwelling units (including fraternity and sorority multi-family housing) The fee will provide for one (1) tap per residential building and an adequate number of additional taps to serve common irrigable areas, if any. The number and size of taps shall be determined by the Utilities Executive Director based upon the criteria established in the Uniform Plumbing Code as amended pursuant to Chapter 5 of this Code. a. For each residential building unit $550.00 $567.00 b. Plus, for each square foot of lot area $0.29 $0.30 (3) Mobile home parks The size of the tap shall be determined by the Utilities Executive Director based upon the criteria established in the Uniform Plumbing Code as amended pursuant to Chapter 5 of this Code. a. For each residential building unit $550.00 $567.00 b. Plus, for each square foot of lot area $0.29 $0.30 (4) Hotels, fraternity and sorority dormitory housing and similar uses. The nonresidential rate shall apply. (5) Nonresidential service -3- a. Service to all nonresidential taps, including, but not limited to, taps for commercial and industrial service, shall be charged according to the size of the meter pursuant to the following schedule: Meter Size (inches) Non- residential Plant Investment Fee ¾ $8,790.00 $9,054.00 1 $23,060.00 $23,752.00 1½ $45,610.00 $46,978.00 2 $78,820.00 $81,185.00 b. The fee for all meters larger than two (2) inches shall be calculated by multiplying the estimated peak daily demand by the following charge per gallon, but shall not be less than the charge for a two-inch meter. $5.23 $5.39 Section 3. That the modifications set forth above shall be effective for all fees paid on or after January 1, 2021. Introduced, considered favorably on first reading, and ordered published this 4th day of November, A.D. 2020, and to be presented for final passage on the 17th day of November, A.D. 2020. __________________________________ Mayor ATTEST: _______________________________ City Clerk -4- Passed and adopted on final reading on the 17th day of November, A.D. 2020. __________________________________ Mayor ATTEST: _______________________________ City Clerk -1- ORDINANCE NO. 134, 2020 OF THE COUNCIL OF THE CITY OF FORT COLLINS AMENDING CHAPTER 26 OF THE CODE OF THE CITY OF FORT COLLINS TO REVISE THE WATER SUPPLY REQUIREMENTS FEES WHEREAS, the City Council is empowered and directed by Article XII, Section 6, of the City Charter to fix, establish, maintain, and provide for the collection of such rates, fees, or charges for utility services furnished by the City as will produce revenues sufficient to pay the costs, expenses, and other obligations of the water utility, as set forth therein; and WHEREAS, the City owns and operates a water utility that provides treated water service to customers with its service area; and WHEREAS, through various water supply furnishing or development programs, the City has historically required that persons desiring new or increased water service from the water utility, among other things, furnish or otherwise provide to the City certain rights to use water or payments of cash-in-lieu thereof in order to offset the impacts of the requested water service, which requirements are currently set forth in Sections 26-129 and 26-146 through 26-150 of the Code of the City of Fort Collins as the water supply requirements (“WSR”); and WHEREAS, the Water Board considered the proposed WSR inflation-only-based adjustments for at its meeting on September 17, 2020, and recommended approval of the proposed adjustments; and WHEREAS, City staff has completed a review of the WSR and has determined that an increase in the cash-in-lieu related excess water use surcharge rate is necessary to ensure that, among other things, the impacts of new and increased water service are offset and that the water utility has sufficient water supplies and infrastructure to serve customers of the water utility with an adequate level of service. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows: Section 1. That the City Council hereby makes and adopts the determinations and findings contained in the recitals set forth above. Section 2. That Section 26-129 of the Code of the City of Fort Collins is hereby amended to read as follows: Sec. 26-129. - Schedule D, miscellaneous fees and charges. The following fees and service charges shall be paid by water users, whether inside or outside the City limits: (a) Connection fees and service charges shall be as set forth in Subsection 26-712(b). (b) The fire hydrant fees and charges shall be as follows: -2- (1) For installation of meter Per meter $43.00 (2) For removal of meter Per meter $43.00 (3) For daily rental for meter and fittings Per meter $8.60 (4) For water service Per 1,000 gallons $13.36 $13.76 A deposit may be required in the amount of the charges for the anticipated water usage and rental. (c) The fees and requirements for water supply shall be as follows: (1) To satisfy Water Supply Requirement (WSR) with cash payments Per acre- foot of WSR $21,500.00 $22,145.00 (2) Excess water use surcharge assessed on commercial and irrigation taps when water use is in excess of the applicable annual allotment Per 1,000 gallons $10.09 $10.39 (3) The annual water allotment, based on the minimum WSR shall be as follows: Meter Size (inches) Annual Allotment (gallons/ year) ¾ 293,270 1 739,680 1½ 1,538,020 2 2,577,480 Above 2 325,851 gallons per acre foot of WSR . . . Section 3. That the modifications set forth above shall be effective for all fees paid on or after January 1, 2021. Introduced, considered favorably on first reading, and ordered published this 4th day of November, A.D. 2020, and to be presented for final passage on the 17th day of November, A.D. 2020. __________________________________ Mayor ATTEST: _______________________________ City Clerk -3- Passed and adopted on final reading on the 17th day of November, A.D. 2020. __________________________________ Mayor ATTEST: _______________________________ City Clerk