HomeMy WebLinkAboutMINUTES-11/02/2010-RegularNovember 2, 2010
COUNCIL OF THE CITY OF FORT COLLINS, COLORADO
Council -Manager Form of Government
Regular Meeting - 6:00 p.m.
A regular meeting of the Council of the City of Fort Collins was held on Tuesday, November 2,
2010, at 6:00 p.m. in the Council Chambers of the City of Fort Collins City Hall. Roll Call was
answered by the following Councilmembers: Hutchinson, Kottwitz, Manvel, Ohlson, Poppaw, Roy,
and Troxell.
Staff Members Present: Atteberry, Krajicek, Roy.
Citizen Participation
Eric Sutherland, 3520 Golden Currant, commented regarding an open records request he had
submitted to the City.
Steve Yurash, 4021 Yellowstone Court, Electric Board member, discussed a proposal to heat a
student housing development on Centre Avenue with electric heat. He suggested the proposed
project be reviewed by the Electric Board.
Stacy Lynne, 216 Park Street, discussed state politics.
Kevin Cross, 300 Peterson, Fort Collins Sustainability Group, encouraged the use of tiered electric
rates and asked that the March 8, 2011 work session be focused on tiered residential electric rates.
Citizen Participation Follow-up
Mayor Hutchinson discussed the guidelines for Citizen Participation and noted comments are to be ='
directed to Council.
Councilmember Roy asked about the status of the recall effortinvolving Councilmember Poppaw.
City Clerk Kraijeck replied the recall effort did begin but no recall petition signatures were ever
submitted for consideration.
Councilmember Roy stated Council should consider tiered electric rates.
Councilmember Kottwitz asked that the Grove Project, mentioned by Mr. Yurash, be presented to
the Electric Board for consideration.
Councilmember Ohlson stated the transformer boxes are painted in order to prevent graffiti and it
is a cost savings measure. He stated the attempt to recall Councilmember Poppaw was a failure.
7
November 2, 2010
Agenda Review
City Manager Atteberry stated there were no changes to the published agenda.
CONSENT CALENDAR
6. Items Relatim; to the 2011 Downtown Development Authoritv BudQL
A. First Reading of Ordinance No. 106, 2010, Relating to the Downtown Development
Authority Annual Appropriations for the Fiscal Year 2011 and Fixing the Mill Levy
for Fiscal Year 2011.
B. First Reading of Ordinance No. 107, 2010, Appropriating Revenue in the Downtown
Development Authority Debt Service Fund for Payment of Debt Service Obligations
for the Year 2010.
Ordinance No. 106, 2010, adopts the 2011 Budget, sets the amount of $826,758 to be
appropriated for fiscal year 2011 for the administrative operations budget, sets the amount
of S5,950,214 for debt service payments to be appropriated for fiscal year 2011 and sets the
2011 mill levy for the Fort Collins, Downtown Development Authority at five mills,
unchanged since 2002.
Ordinance No. 107, 2010, appropriates 2010 debt service obligations for the amount due of
$1,562,232.
7. First Reading of Ordinance No. 108, 2010, Appropriating Unanticipated Grant Revenues in
the General Fund for Police Services' Restorative Justice Program and the Transfer of
Matching Funds Previously Appropriated in the Police Services Project Budget.
A grant in the amount of $30,000 has been received from the Colorado Division of Criminal
Justice Juvenile Accountability Incentive Block Grants fund for salaries associated with the
continued operation of Restorative Justice Services, which includes the RESTORE program
for shoplifting offenses, and the Restorative Justice Conferencing Program for all other
offenses. Restorative Justice is an alternative method of holding a young offender
accountable by facilitating a meeting with the offender, the victim/victim representative and
members of the community to determine the harm caused by the crime, and how to repair
the harm. By identifying and repairing the harm caused by the crime, Criminal Justice
officials are optimistic repeat offenses by these youth will be reduced and the needs and
concerns of the victims and affected community will be addressed. A $3,333 cash match is
required for the S30,000 grant and will be met by appropriating funds from prior project
income.
8. Hearing and First Reading of Ordinance No. 109, 2010, Adopting and Determining the
Effective Date of the District -Precinct Map for the 2011 Regular Municipal Election.
November 2, 2010
This Ordinance adopts the District -Precinct Map for the 2011 regular municipal election for
the purposes of (1) determining the eligibility for District Council offices for the April 2011
election; (2) determining eligibility for any interim appointments to fill any District Council
vacancies which may occur after November 26, 2010; and (3) determining residency for
voting in any special municipal election conducted after November 26, 2010.
9. First Readint of Ordinance No. 110, 2010. Authorizing the Lease of Citv-Owned Property
at 945 East Prospect Road.
The City purchased 945 East Prospect in 1991 as part of the Prospect/Lemay Choices '95
Intersection Improvement Project. This project did not materialize and may not become
active in the future. The property has been rented since its purchase. It is recommended by
staff to continue renting this house, having the tenant responsible for all utility/phone/cable
expenses and site clean-up. The property is currently leased.
10. Resolution 2010-066 Authorizint the Initiation of Exclusion Proceedings of Annexed
Properties Within the Territory of the Poudre Vallev Fire Protection District.
This Resolution authorizes the City Attorney to file a petition in Larimer County District
Court to exclude properties annexed into the City in 2009 from the Poudre Valley Fire
Protection District in accordance with state law and to allow for the provision of fire
protection services to such properties by the Poudre Fire Authority.
11. Resolution 2010-067 Approving an Amendment to the Collective Bargaining Agreement
between the Citv and the Fraternal Order of Police Retarding Salary For 2011.
The City and the Northern Colorado Lodge #3, Colorado Fraternal Order of Police ("FOP")
entered into a collective bargaining agreement for 2010 and 2011, which included a
provision for the future negotiation of salary levels for members of the bargaining unit for
2011. City staff and the FOP engaged in negotiations and have tentatively reached an
agreement regarding the 2011 salary levels.
***END CONSENT***
Ordinances on First Reading were read by title by City Clerk Krajicek.
6. Items Relating to the 2011 Downtown Development Authority Budget.
A. First Reading of Ordinance No. 106, 2010, Relating to the Downtown Development
Authority Annual Appropriations for the Fiscal Year 2011 and Fixing the Mill Levy
for Fiscal Year 2011.
B. First Reading of Ordinance No. 107, 2010, Appropriating Revenue in the Downtown
Development Authority Debt Service Fund for Payment of Debt Service Obligations
for the Year 2010.
E
November 2, 2010
7. First Reading of Ordinance No. 108, 2010, Appropriating Unanticipated Grant Revenues in
the General Fund for Police Services' Restorative Justice Program and the Transfer of
Matching Funds Previously Appropriated in the Police Services Project Budget.
8. Hearing and First Reading of Ordinance No. 109, 2010, Adopting and Determining the
Effective Date of the District -Precinct Map for the 2011 Regular Municipal Election.
9. First Reading of Ordinance No. 110, 2010, Authorizing the Lease of City -Owned Property
at 945 East Prospect Road.
15. First Reading of Ordinance No. 111, 2010, being the Annual Appropriation Ordinance
Relating to the Annual Appropriations for the Fiscal Year 2011 and Adopting the Budget for
the Fiscal Years Beginning January 1, 2011 and Ending December 31, 2012, and Fixing the
Mill.Levy for Fiscal Year 201.1:
16. Items Relating to Utility Rates and Charges for 2011.
A. First Reading of Ordinance No. 112, 2010, Amending Chapter 26 of the City Code
to Revise Water Rates, Fees and Charges.
B. First Reading of Ordinance No. 113, 2010, Amending Chapter 26 of the City Code
to Revise Wastewater Rates, Fees and Charges.
C. First Reading of Ordinance No. 114, 2010, Amending Chapter 26 of the City Code
to Revise Electric Rates, Fees and Charges.
D. First Reading of Ordinance No. 115, 2010, Amending Chapter 26 of the City Code
to Revise Electric Development Fees and Charges.
Councilmember Manvel made a motion, seconded by Councilmember Roy, to adopt and approve
all items on the Consent Calendar. Yeas: Hutchinson, Kottwitz, Manvel, Ohlson, Poppaw, Roy and
Troxell. Nays: none.
THE MOTION CARRIED.
Consent Calendar Follow-up
Councilmember Manvel commended the Police Services Restorative Justice Program.
Councilmember Reports
Councilmember Troxell commended a presentation by Utilities staff member Dennis Sumner
regarding the Jump Start Zone for Fort Zed.
10
November 2; 2010
Ordinance No. 111, 2010,
Being the Annual Appropriation Ordinance Relating to the Annual Appropriations for the
Fiscal Year 2011 and Adopting the Budget for the Fiscal Years Beginning January 1, 2011 and Ending December 31, 2012,
and FLxin; the Mill Lew for Fiscal Year 2011, Adopted on First Reading
The following is staff's memorandum for this item.
WWWWW"r aRIMUP.rc41
The Annual Appropriation Ordinance is presented for First Reading. This Ordinance sets the City
Budget for the two year period (2011-2012). The approved Budget becomes the City's financial
plan for the nest two fiscal years.
BA CKGR O UVD/DIS C USSION
This biennial Budget represents the work of many dedicated individuals who came together to
participate in the budgetprocess. Since 2005, the City has used the Budgetingfor Outcomes (BFO)
process. BFO has a number of advantages over traditional budgeting approaches and helps the
City meet several important goals, including:
• Create clarity about the overall budget process for the community;
• Allocate revenues to the highest priorities and outcomes citizens want and need;
• Understand the choices for funding programs and services; and
• Emphasize staff accountability, efficiency, innovation and partnership.
Using this approach, City Council and staff worked inclose collaboration over the past two months
to build a financial plan, based on revenue available, that will achieve service outcomes which
matter most to the citizens and community. This work has resulted in the development of the Final
2011-2012 Budget. The approval of the Appropriation Ordinance on First Reading represents a
major milestone in this process.
As the budget development process began in February 2010, City Council and staff met on several
occasions. to outline goals and assumptions for developing the recommended budget. Council was
actively engaged in the development and approval of the seven key outcomes that have shaped this
budget.
Result Area/Outcome
Description
Culture, Parks and Recreation
Fort Collins provides diverse parks, cultural, and
recreational amenities.
Fort Collins has a healthy, sustainable economy
Economic Health
reflecting the values of our unique community in a
chanvinv world.
11
November 2, 2010
Environmental Health
Fort Collins promotes, protects and enhances a healthy
and sustainable environment.
Fort Collins exemplifies an efficient, innovative,
High Performing Government
transparent, effective and collaborative city
_
government.
Neighborhood Livability
Fort Collins fosters and supports a variety of quality
neighborhoods.
Safe Community
Fort Collins provides a safe place to live, work, learn
and play.
Transportation
Fort Collins provides for safe and reliable multi -modal
travel to, from, and throughout the City.
Budget Highlights
The 2011-12 Final Budget is a financial and service plan linked to the seven key outcomes and
results that matter most to our citi=ens. Some key highlights of the City Budget include:
1. The total Budget for all City fiinds for 2011 is $425.8 million and $426.4 million for 2012.
2. The Budget includes no tax increase.
3. Sales and Use tax revenue accounts for approximately 55% of the General Fund revenue
collected annually. This tax revenue is projected to increase by 1.5% in 2011 with a slightly
larger increase in 2012 of 2.9%.
4. The projected Utility rate increases for 2011 to fiind operations and maintain minimum
reserves are a 9% increase for Wastewater, a 6.5% increase for Electric, a 3% increase for
Water and no increase for Stormw•ater. For 2012, the projected Utility rate increases are
an 8% increase for Wastewater, a 6.23% increase for Electric and no increases for Water
and Stormwater.
5. In 2011 the Budget will reduce classified, unclassified, and contractual City staff by a net
of 13:28 full-time equivalent (FIE) positions. The estimated reduction in hourly staff in
2011 is 25 FTE positions. For 2012, the net change is an additional decrease of 5.75 FTE
for classified, unclassified, and contractual City staff and a decrease of approximately 10
hourly FTE.
Budget Assumptions
2010
2011
% Chancre
2012
% Change
Operating
$448.7
$379.7
-15.4%
$386.9
1.9%
Debt
$21.3
$22.8
7.0%
$23.2.
1.8%
Capital
$28.0
$25.0
-10.7%
$18.1
-27.6%
Total.'C�tvA ro"riations
$498.0
$427:5 .
-74:2%
$428.2
0.2%
12
November 2, 2010
Less Internal Service Funds -$58.1 I -$55.2 -5.0% 1 -$57.0 13.3%
Less Transfers to Other
Funds -$95.4 -$39.9 -58.2% -$38.5 1-3.5%
Note: This includes GID and URA which will be appropriated in separate ordinances.
Some of the key assumptions used in developing the Final Budget include:
1. Limited revenue growth for 2010 and 2011
Despite the stabilization of the economic conditions in 2010, most experts agree that the recovery
will continue to occur gradually with sectors of the economy enduring a lasting reduction in output
and employment. The 2011-2012 Budget, therefore, employs conservative assumptions ofgrowth
that reflect a cautiously optimistic outlookfor the next two years.,
2. Use of reserves
Approximately $4.2 million in General Fund reserves were used to balance the 2011 budget and
$712, 000 in the 2012 Budget. Reserves are used primarily for one-time projects.
3. Employee salary adjustments
No merit -based pay increases are budgeted for City employees in 2011, and any adjustments in 2012
(not to exceed 2%) will be based on the market conditions. The budget also includes two unpaid
furlough days for all City employees in 2011.
4. Focus on City Council and community priorities and adjust to changing revenues
This Budget continues to place a high priority on the services identified by citizens and City Council
as most important. Due to significant decreases in revenue, this Bridget includes reductions in
several areas, including parks and recreation and general government.
Adjustments to the City Manager's Recommended Budget
During previous Budget work sessions, Council did not provide any collective change in direction
on the Bridget. Accordingly, there are no changes for First Reading on. the City Manager's
Recommended Budget. An additional Budget discussion is scheduled for the November 9 Work
Session.
Conclusion
The 2011-2012 Final Bridget is a sound financial plan to deliver the services the citizens value most.
Due to limited resources, it does not, however, frilly meet the demand for services that citizens need
and expect. However, the Budgeting for Outcomes process has enabled staff to focus and apply the
13
November 2, 2010
resources available to key community outcomes. Citizens will receive excellent value for their tax
dollars.
Any final amendments agreed to by Council will be included in the Second Reading of the Budget
Ordinance on November 16, 2010. By Charter, the Budget must be adopted and appropriations for
the 2011 fiscal year must be adopted by November 30, 2010. "
Mayor Hutchinson stated the budget hearing will continue, despite not knowing the outcome of the
election regarding ballot measure 2B. A work session will be held November 9th and the Second
Reading of the budget will be November 16th.
Sarah Allman, 1200 East Stuart, opposed budget cuts to Transfort and Dial -a -Ride night service.
Toney Wilson, 2719 Park Lake Court, Northside Atzlan Center boxing team coach, opposed cuts
to the Northside Atzlan Center budget.
Stacy Lynne, 216 Park Street, discussed budget priorities and opposed budget cuts to Transfort and
the Northside Atzlan Center.
Justin Salazar, 116 King Avenue, opposed budget cuts to the Northside Atzlan Center.
Randy Starkey, 727 Redstone Drive, Bellvue, opposed the proposed closure of Mulberry Pool.
Julie Pando, 2521 Romeldale Court, opposed budget cuts to the Northside Atzlan Center.
Annette Zacharias, 2218 Timber Creek, City of Fort Collins Women's Commission, asked Council
to consider community safety and poverty issues when planning budget cuts.
Irene Vernon, Northside Atzlan Center Advisory Board co-chair, opposed budget cuts to the
Northside Atzlan Center.
Nina Simmers, Ann Street, pro-bono mediator for Neighborhood Services, asked that the mediation
program continue to receive funding.
Dr. Maricela DeMirgyn, 335 Parker Street, Northside Atzlan Center Advisory Board co-chair,
opposed budget cuts to the Northside Atzlan Center.
Michael Devereaux, 2150 Maid Marian Court, Public Transit Action Group, opposed cuts to Dial -a -
Ride night service, noting its users have no other options.
Patsi Maroney, 2906 Eastborough Drive, pro-bono mediator for Neighborhood Services, opposed
cuts to the mediation program.
Evan Welting, Elgin Court, Fort Collins Area Swim Team Head Coach, opposed the proposed
closure of Mulberry Pool.
14
November 2, 2010
Ernie Miranda, )23 North Howes, opposed budget cuts to the Northside Atzlan Center.
Jackie Charlesworth, 1036 Tierra Lane, Team Vortex Head Coach, opposed the proposed closure
of Mulberry Pool
Jaime Fulgencio, 3288 Ambush Drive, opposed budget cuts to the Northside Atzlan Center.
Desirae Salazar, 825 Kingston Drive, opposed budget cuts to the Northside Atzlan Center.
Mariah Ortiz, 3808 Celtic Lane, opposed budget cuts to the Northside Atzlan Center on behalf of
Irish Elementary students.
Frank Martinez, 3815 Celtic Lane, submitted letters to Council opposing budget cuts to the
Northside Atzlan Center.
Felicia Saenz, 90 S 17th Avenue Drive, Brighton, opposed budget cuts to the Northside Atzlan
Center.
Danielle Robertson, 1031 Davidson Drive, opposed budget cuts to the Northside Atzlan Center.
Tatiana Seijas, 1020 Wabash Street, opposed budget cuts to the Northside Atzlan Center.
Brandon Robertson, 1031 Davidson Drive, opposed budget cuts to the Northside Atzlan Center.
Kevin Flores, Colorado State University student, opposed budget cuts to the Northside Atzlan
Center.
Neva Menchaca, 501 North Hollywood Street, opposed budget cuts to the Northside Atzlan Center.
Paul Hewitt, Fort Collins resident, opposed budget cuts to the Northside Atzlan Center.
Cheryl Distaso, Center for Justice, Peace, and Environment, opposed budget cuts to Dial -a -Ride
services and the Northside Atzlan Center.
Eric Sutherland, 3520 Golden Currant, discussed the energy services budget.
Mayor Hutchinson and Councilmember Manvel thanked the citizens who spoke.
Councilmember Roy made a motion, seconded by Councilmember Manvel, to adopt Ordinance No.
111, 2010, on First Reading.
Councilmember Roy stated he would support the motion and looked forward to possible changes
with the potential passage of Ballot measure 2B.
15
November 2, 2010
Councilmember Manvel stated City Charter requires this budget schedule and added it is impossible
to fix all the budget problems without knowing exactly what funds are available.
Councilmember Kottwitz thanked the citizens for their efforts and stated she would propose budget
changes regardless of the potential passage of Ballot Measure 2B.
Mayor Hutchinson stated he would support the motion and looks forward to restoring funding to the
Northside Atzlan Center and Mulberry Pool should Ballot Measure 2B pass.
The vote on the motion was as follows: Yeas: Hutchinson, Kottwitz, Manvel, Ohlson, Poppaw, Roy
and Troxell. Nays: none.
THE MOTION CARRIED.
Items Relating to Utility Rates and Charges for 2011, Adopted on First Reading
The following is staff s memorandum for this item.
"EXECUTIVE SUS LIL4RY
A. First Reading of Ordinance No..112, 2010, Amending Chapter 26 of the City Code to Revise
Water Rates, Fees and Charges.
B. First Reading of Ordinance No. 113, 2010, Amending Chapter 26 of the City Code to Revise
Wastewater Rates, Fees and Charges.
C. First Reading of Ordinance No. 114, 2010, Amending Chapter 26 of the City Code to Revise
Electric Rates, Fees and Charges.
D. First Reading of Ordinance No. 115, 2010, Amending Chapter 26 of the City Code to Revise
Electric Development Fees and Charges.
The Ordinances propose the following rate increases for monthly utility billings:
% Increase
Water
3.0% (across the board)
Wastewater
9.0% (across the board)
Electric
6.5% on average
The changes would take effect for billings with meter readings on or after January 1, 2011.
The water and wastewater rate increases are across the board to all customer classes. The electric
rate increase is proposed to vary by rate class from 0% to 10%. There is no change in the monthly
rate for stormwater. A typical single family customer's monthly bill will increase $8.91 from
$129.75 to $138.66 or 6.9%.
16
November 2, 2010
A small reduction (1-3%) in electric development fees for 2011 is also proposed. No changes in
plant investment fees are planned for water, wastewater or stormwater.
BA CKGR O UND/D IS C USSION
A. Monthly Water Rates (Ordinance No. 112, 2010)
Ordinance No. 112, 2010, proposes a 3% water rate increase. The increase is across the board and
applies to all rate classes. A cost of service study was conducted in 2009 and the 2010 water rate
classes were realigned based on the study. With the proposed rate, a typical single family
residential customer's monthly bill will increase 3% as shown in the table below:
Single Family
201O Monthly Water
Proposed 2011
Typical Use
Bill
Monthly Water Bill
$ Increase
% Increase
January = 5000
$23.43
$24.13
$0.70
3%
gallons
July - 21, 000 gallons
$63.22
$65.11
$1.89
3%
�Llo:hAverage
baseasonal zcse
ofgallons
$34.83
$35.87
$1.04
3%
er
Although 3% water rate increases were implemented in 2007 and in 2010, water operating revenues
decreased 13.4% between 2006 and 2009. The reduction in use is thought to be a combination of
conservation, weather and economic factors. The proposed 2011 rate increase is required to fund
operations, capital improvements and maintain debt service coverage.
B. Monthly Wastewater Rates (Ordinance No. 113, 2010)
Ordinance No. 113, 2010, proposes a 9% wastewater rate increase. The increase is across the
board and applies to all rate classes. A 2009 cost of service study was conducted and wastewater
rate classes were realigned in 2010. With the proposed increase, atypical residential customer's
bill will increase from $26.23 to $28.59 or $2.36 per month. The typical customer is based on 4,800
gallons of winter quarter water use.
Council has approved a series of annual wastewater rate increases starting in 2008. The prior rate
increases, as well as the proposed 2011 increase, are necessary to fund wastewater operations and
meet the increase in long term debt service obligations for a major capital project to replace the
trickling filter, make odor control improvements and to prepare for future regulation based
improvements at the Mulberry Water Reclamation Facility. An 8% increase is projected for 2012.
In addition, staff is proposing a clarification to the Code to set a default winter quarter water use
for residential customers who did not establish a winter quarter average (WQA) during the prior
January -March. The winter quarter water use approximates the customer's indoor water use and
is defined in Section 26.206 of the City Code as "the average monthly amount of water billed to the
17
November 2, 2010
user during the preceding months of January, February and March. " City Code does not address
customers who have not been at the premise to establish a YVQA. Current administrative practice
is to assign such single family customers a default WQA of 5,200 gallons. The 5,200 gallons was
based on a historic average water use. With the lower water use during the last few years, the
average WQA for single family residential customers has dropped to 4,800 gallons per month.
Winter quarter water use for duplexes and multifamily units is also now lower than historical
averages. Based on this trend of reduced winter quarter water use, staff is recommending that the
Code be amended to specify the default amounts for all residential customer classes as follows:
Default Winter Quarter Average
Residential Rate Class
Current Administrative
Practice
Default Proposed To Be
Included In City Code
Single Family
5,200 gallons WQA
4,800 gallons WQA
Duplex
8,500 gallons WQA
7,200 gallons WQA
Multi Family
4,200gallons/unit WQA
3,400gallons/unit WQA
These default amounts will only be used for customers who have not established a YVQA for the
premise during the previous January, February and March. The reduction in default WQA amounts
will result in the loss of about $38, 000 per year.
C. . Monthly Electric Rates (Ordinance No. 114, 2010)
A system average 6.5% electric rate increase is proposed for 2011. This rate increase will not be
applied to all customer rate classes across the board. Based on a cost of service study conducted
by staff in 2010, the rates are proposed to vary by rate class as follows:
Proposed Electric Rate Increase for 2011
Residential Energy Rate
10.0%
Residential Demand Rate
10.0%
General Service (small commercial)
0.0%
General Service 50 (medium commercial)
5.1 %
General Service 750 (large commercial, industrial)
5.6%
Traffic Signals
6.7%
Floodlights
0.0%
Average Svstem Increase
6.5%
The above recommendations are based on modified cost of service results but are capped with a
limit of no more than a 10% increase for any customer class. The Council Finance Committee
reviewed the results of the electric cost of service study and the staff recommendations at its
September 20, 2010 committee meeting and supported this modified cost ofservice implementation.
Fort Collins' electric rates will remain among the lowest in the state. The impacts of these rate
recommendations for typical residential and commercial customers are shown in the following
table:
is
November 2, 2010
2011 Electric Rate Impacts on Typical Customers
Average
Proposed
Rate Class
Rate Class
2010
2011
$ Inc.
% Inc.
% Inc.
Residential
700 kYVh/month
$54.43
$59.94
$5.51
10.1 %
10.0%
Residential Demand
1,400 kWh/month, 10 kW
$102.00
$112.42
$10.42
10.2%
10.0%
General Service
2,300 kWh/month
$193.61
$194.41
-$2.20
-1.1 %
0.0%
General Service 50
54, 000 kWh/mo, 140 kYV
S3,277
$3, 443
$166
5.1 %
5.1 %
General Service 750
2.000,000 kWh/month, 3600 kW
$98,932
$104,453
$5,521
5.6%
5.6%
The 6.5% system -wide increase is due to an increase in purchase power rates and the second year
of the Energy Policy implementation. The majority of the rate increase results from a 6.1 %
wholesale rate increase from Platte River Power Authority. This increase in purchase power cost
equates to a 4.7% retail rate increase. Secondly, as part of the 2010 budget, Council approved a
significant increase to the Utilities' energy services budgets in order to implement additional
programs.targeted to meeting Energy Policy and Climate Action Plan goals. In 2010, half of this
energy services budget increase was fimded from reserves with the remainder fimded from a 1.8%
rate increase. The 2010 plan called for a second]. 8% rate increase in 2011 to continue the energy
conservation and efficiency programs at the 2010 level.
Platte River's 2011 6.1 % purchase power rate increase is due to several key factors:
• Reduced surplus energy sales
• Increased operations and maintenance costs
0 Major maintenance work at Craig Unit 1
0 Ongoing O&V of aging plants
0 Environmental costs —primarily mercury removal at Rawhide
• Increased fuel expense due to higher utilization of natural gas peaking plants
• Increased financing and depreciation expense for transmission past into service
• Decrease in interest income
• Capital investment
The proposed electric rate Ordinance also deletes an outdated reference to rental charges for traffic
equipment. The rental charges related to an early traffic signal system (1970s era) which was
purchased by the Light and Power Fund and then repaid by the traffic department through the
referenced rental charges.
Monthly Rate Increase Summary
The following chart summarizes the impact of the proposed rate changes on a typical residential
customer:
19
November 2, 2010
2011 Utility Rates — Impact to T ieal Single Family Customer
Proposed
Current 2010
2011
$ Increase'
% Increase
Electric
700 kPYh per month
$54.43
$59.94
$5.51
10.1
Wastewater
4,800 gallmo YVOA
$26.23
$28.59
$2.36
9.0%
Stormwater
8,600 sq ft lot, light run off
$14.26
$14.26
$0.00
0.0%
Water
Monthly Average based on
seasonal use of 117,131 gallons
per year
$34.83
$35.87
$1.04 "
3.0%
Total Typical Monthly Utility
Bill
I $129.75
1 $138.66
$8.91
6.9%
The following graphs compare Fort Collins current 2010 and proposed 2011 rates with the current
2010 and estimated 2011 rates of several surrounding communities. The graphs are based on the
same typical customer shown in the table above with the exception of water, which is based on
21, 000 gallons, atypical July use. The estimated 2011 rate increases for the comparison cities are
based on information obtained by staff through phone inquiries. These are not approved rates for
any of the. cities or Xcel. Denver wastewater and stormwater rates have not been released and so
the 2011 graph reflects 2010 wastewater and stormwater rates for Denver.
D. Electric Development Fees (Ordinance No. 115, 2010)
Electric developmentfees recover both actual on -site costs (buildingsite charges) and allocated off -
site costs (electric capacity charges) to serve commercial or residential development. These fees
are typically adjusted annually to reflect cost increases; however, some material costs have
decreased slightly and labor costs have remained constant. The proposed 2011 Electric
Development Fee Ordinance (Item D) reflects a 1-3% reduction in costs. The following table shows
the impacts on a sample residential and commercial development.
Typical Single Family Lot
8600 square feet, 70 foot of street frontage, 150 amp service, 410 secondary service
Current 2010
Proposed 2011
$ Change
% Change
$3, 221
1 $3,139
-$83
-2.6%
ltilodel Commercial Development
82,000 sq ft, 1900 ft street frontage, 250 ft primary srv, 600 amps, 208Volt, 3-phase, 1-
transformer
Current 2010
Proposed 2011
$ Change
% Change
$31, 361
$31, 079
-$282
-0.9%
20
November 2, 2010
Water, wastewater and stormwater plant investment fees were revised for 2010. There are no
changes recommended for 2011. "
Ellen Switzer, Financial Operations Manager, stated the proposed rates would increase monthly
electric rates an average of 6.5%, increase water rates 3% across the board, increase monthly
wastewater rates 9% across the board, and slightly reduce electric development fees. Switzer stated
Fort Collins' residential utility rates will remain among the lowest in the state.
Steve Yurash, 4021 Yellowstone Circle, spoke on behalf of himself and fellow Electric Board
members Tom Barnish and John Harris, and stated they voted against the proposed electric utility,
rate changes. He stated the rate increase is too onerous for citizens during these economic times.
He suggested pay increases for technical staff and postponing rate structure changes until the AMI
system is in place.
Eric Sutherland, 3520 Golden Currant, offered a citizen amendment to Ordinance No. 115, 2010,
to add language that would price the connection of new multi -family residential housing that uses
inefficient electric heating to be prohibitively expensive.
Councilmember Troxell asked about the timing of the rate changes with regard to implementation
of the AMI system. Brian Janonis, Utilities Executive Director, replied differential rates could not
be supported until the AMI system is in place. He stated the 1.8% Energy Efficiency rate increase
has been split over two years.
Councilmember Kottwitz asked if the entire rate increase will also be needed next year, as it was
last year. Janonis replied reserves are being used in 2010.
Councilmember Roy made a motion, seconded by Councilmember Manvel, to adopt Ordinance No.
112, 2010, on First Reading. Yeas: Hutchison, Kottwitz, Manvel, Ohlson, Poppaw, Roy and
Troxell. Nays: none.
THE MOTION CARRIED.
Councilmember Roy made a motion, seconded by Councilmember Manvel, to adopt Ordinance No.
113, 2010, on First Reading. Yeas: Hutchison, Kottwitz, Manvel, Ohlson, Poppaw, Roy and
Troxell. Nays: none.
THE MOTION CARRIED.
Councilmember Roy made a motion, seconded by Councilmember Manvel, to adopt Ordinance No.
114, 2010, on First Reading.
Councilmember Kottwitz stated she would not support the motion as she does not agree with the
1.8% increase.
Councilmember Manvel stated Fort Collins has a policy in place driving the increase.
21
November 2, 2010
Councilmember Ohlson stated Fort Collins has one of the lowest electric rates in the state and
perhaps the country.
The vote on the motion was as follows: Yeas: Hutchison, Manvel, Ohlson, Poppaw, Roy and
Troxell. Nays: Kottwitz.
THE MOTION CARRIED.
Councilmember Roy made a motion, seconded by Councilmember Manvel, to adopt Ordinance No.
115, 2010, on First Reading.
Councilmember Manvel asked that the fifth Whereas clause be checked for accuracy prior to Second
Reading.
The vote on the motion was as follows: Yeas: Hutchison, Kottwitz, Manvel, Ohlson, Poppaw, Roy
and Troxell. Nays: none.
THE MOTION CARRIED.
The meeting adjourned at 7:45 p.m.
ATTEST:
City Clerklel1.tL
Adjournment
u
22