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Home My WebLink AboutReport - Mail Packet - 10/1/2013 - Power Point Presentation From September 24, 2013 Work Session: 20149/26/2013 1 1 2014 Utility Rates and Fees City Council Work Session September 24, 2013 2 Agenda Electric Utility Wastewater Utility Water Utility Stormwater Utility 9/26/2013 2 3 Electric Utility 4 Electric Rate Increase Two components in 2.0% increase + 1.5% retail impact from Platte River Power Authority’s wholesale rate increase + 0.5% for the Fort Collins Solar Program 9/26/2013 3 5 Impacts by Rate Class & Season 6 FULL IMPLEMENTATION IN 2014 Current 2013 Proposed 2014 $ Change % Change $3,156 $3,366 $210 6.7% Current 2013 Proposed 2014 $ Change % Change $30,471 $32,895 $2,424 8.0% Typical Single Family Lot 8600 square feet, 70 foot of street frontage, 150 amp service, 4/0 secondary service Model Commercial Development 82,000 sq ft, 190 ft street frontage, 250 ft primary srv, 600 amps, 208Volt, 3-phase, 1-transformer Option 1: Implement the full increase in 2014 Electric Development Fees Option 2: Implement 50% of the increase in 2014 and the remainder plus any additional changes in 2015 9/26/2013 4 7 Wastewater Utility 8 Wastewater Fund Per 2014 City Budget 3.0% rate increase Increase necessary for capital improvements Updated Cost of Service study Plant Investment Fees for 3” connections specific to customer like > 3” connections 9/26/2013 5 9 Impacts by Rate Class Staff recommends gradual rate adjustments 7.5% -5.6% 4.2% -3.6% 3.0% 6.1% -2.5% 2.8% -1.5% 3.0% -8.0% -6.0% -4.0% -2.0% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% Single Family Duplex Multifamily Commercial System-wide 2013 Wastewater Cost of Service Study Recommendations for 2014 Rates COS Recommendation Staff Recommendation 10 Plant Investment Fees Current Fees Proposed 2014 Volume Volume gpd Proposed Fee Customer Class 05-'08 data Fees 09-'12 dataChange PIF Change gpd $ gpd % $ % PIF $/gpd $ 11.46 $ 12.35 7.8% Single family Res 300 $ 3,440 250 -17% $ 3,090 -10.2% Duplex & Multi-fam 210 $ 2,410 200 -5% $ 2,470 2.5% Nonresidential Meter Size (inches) 3/4" 600 $ 6,880 530 -12% $ 6,550 -4.8% 1" 1,510 $ 17,300 1,250 -17% $ 15,440 -10.8% 1 1/2" 2,660 $ 30,480 2,420 -9% $ 29,890 -1.9% 2" 4,670 $ 53,520 4,760 2% $ 58,790 9.8% 3" 12,680 $ 145,310 16,930 34% $ 209,090 43.9% > 3 inches Based on specific customer requirements 9/26/2013 6 11 Water Utility 12 Water Rate Increase Two components in 4.0% increase + 3.0% for increased capital investment in infrastructure + 1.0% for additional costs associated with the High Park Fire Updated Cost of Service study 9/26/2013 7 13 Impacts by Rate Class 9.0% -16.4% -1.8% 7.7% 3.5% 4.0% 6.6% -5.0% 0.0% 5.3% 3.5% 4.0% -20.0% -15.0% -10.0% -5.0% 0.0% 5.0% 10.0% 15.0% Single Family Multifamily Duplex Commercial High Volume Industrial System-wide 2013 Water Cost of Service Study Recommendations for 2014 Rates COS Recommendation Staff Recommendation Staff recommends gradual rate adjustments 14 Plant Investment Fees 2013 2014 Customer Class / Meter Size Peak Day Usage PIF Fee Peak Day Usage Change PIF Fee Change gpd $ gpd % $ % PIF $/gpd $ 4.26 $ 4.43 4.0% Single Family Res Domestic Use (base) 172 $730 162 -6% $720 -1.4% Peak Use (per sqft) 785 $0.39 627 -20% $0.32 -17.9% Multi-family (per unit) Domestic Use (base) 120 $510 121 1% $540 5.9% Peak Use (per sqft) 217 $0.27 192 -12% $0.25 -7.4% Nonresidential Meter Size inches 3/4 1,850 $7,880 1,580 -15% $7,000 -11.2% 1 5,340 $22,750 4,300 -19% $19,050 -16.3% 1 1/2 11,130 $47,410 9,390 -16% $41,600 -12.3% 2 16,970 $72,290 14,540 -14% $64,410 -10.9% 3 38,800 $165,290 32,730 -16% $144,990 -12.3% > 3 inches Based on specific customer requirements 9/26/2013 8 15 Water Right Utilization Fee In addition to Raw Water Requirement Necessary to fully utilize accepted water rights Specific to the irrigation company 16 Stormwater Utility 9/26/2013 9 17 Permit Fees Per 2014 City Budget no rate increase Proposed adjustments to Floodplain Permit fees No changes to these fees since adoption New rates based on actual cost of reviews Stormwater Permit Fees Current $ Proposed $ Floodplain Use Permit $25 $50 Floodplain Model Analysis Review $300 $500 Floodplain Variance $300 $1,000 18 Plant Investment Fees Stormwater Plant Investment Fee 2013 Current Fee 2014 Proposed Fee % Change $6,390 $7,817 22% 9/26/2013 10 19 Typical Residential Utility Bill 20 Typical Residential Summer Utility Bill SUMMER Current 2013 Estimated 2014 $ Increase % Increase Electric 700 kWh / mo Wastewater 4,800 gal / mo WQA Stormwater 8,600 sq. ft. lot, light runoff Water 15,000 gal / mo Total Estimated Average Monthly Utility Bill $ 30.87 $ 32.76 $ 14.26 $ 14.26 $ - Typical Residential Customer - Monthly Utility Bill 4.0% 6.6% $ 6.75 $ 3.52 $ 174.71 $ 56.89 $ 167.96 $ 53.37 0.0% $ 69.46 $ 70.80 $ 1.34 1.9% $ 1.88 6.1% 9/26/2013 11 21 Typical Residential Winter Utility Bill WINTER Current 2013 Estimated 2014 $ Increase % Increase Electric 700 kWh / mo Wastewater 4,800 gal / mo WQA Stormwater 8,600 sq. ft. lot, light runoff Water 15,000 gal / mo Total Estimated Average Monthly Utility Bill $ 26.59 $ 28.35 $ 1.76 6.6% $ 133.96 $ 138.57 $ 4.61 3.4% 6.1% $ 14.26 $ 14.26 $ - 0.0% $ 30.87 $ 32.76 $ 1.88 $ 62.24 $ 63.21 $ 0.97 1.6% Typical Residential Customer - Monthly Utility Bill 22 Typical Residential Development Fees 9/26/2013 12 23 Typical Residential Development Current 2013 Proposed 2014 Change Electric Electric Development Fee $3,156 $3,366 $210 6.7% Water Raw Water Requirement $5,203 $5,203 $0 0.0% Water Right Utilization Fee $3,202 $3,202 Plant Investment Fee $4,084 $3,472 -$612 -15.0% Wastewater Plant Investment Fee $3,440 $3,090 -$350 -10.2% Stormwater Plant Investment Fee $1,082 $1,324 $242 22.4% Total $16,965 $19,657 $2,692 15.9% Assumptions: 8,600 sq. ft. lot 70 foot frontage 6,156 sq. ft. common area and right-of-way 150 amp service 24 Typical Residential Development $13,809 $16,291 $20,546 $26,401 $29,582 $31,371 $- $5,000 $10,000 $15,000 $20,000 $25,000 $30,000 $35,000 Fort Collins (Current 2013) Fort Collins (Proposed 2014) Longmont Greeley FCLWD / South FC Sanitation ELCO / Boxelder Sanitation Water, Wastewater, and Stormwater Plant Investment Fees Stormwater Wastewater Water 9/26/2013 13 25 In Summary 2014 Proposed Rate Increases: Electric 2.0% Wastewater 3.0% Water 4.0% Stormwater 0.0% Plant Investment and Development Fees updated New Water Utilization Fee proposed 26 Questions and Discussion