HomeMy WebLinkAbout136 - 12/02/2014 - AMENDING CHAPTER 26 OF CITY CODE REGARDING CALCULATION AND COLLECTION OF DEVELOPMENT FEES IMPOSED FO ORDINANCE NO. 136, 2014
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 CONS"IRUCTION 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, including an Electric Capacity Fee and a Building Site Charge, on parties
developing properties for which new or modified electric service is required; and
WHEREAS, custom and practice of the Electric Utility has been to calculate
development fees based on the rates adopted by City Council in effect at the time the fees are
paid in full; and
WHEREAS, custom and practice of the Electric Utility has also been to collect
development fees in installments that allow a developer to pay a deposit prior to the Utility
constructing the new service, and then pay the remainder of the fees prior to the Utility
energizing the new service: and
WHEREAS, during 2014, Electric Utility staff evaluated the description of the
development fee calculation and collection process in light of questions posed by developers and
changes in industry practices; and
WHEREAS, Electric Utility staff recommends the description of how the development
fees are calculated and collected be clarified in the City Code to better reflect the custom and
practice of the Electric Utility with regard to administration of such fees and scheduling of
associated construction work; and
WHEREAS, Electric Utility staff also recommends updating the manner in which the
City collects development fees for new or modified electric service connections to require full
payment before the City schedules construction of the service; and
WHEREAS, based on the foregoing, it is the desire of the City Council to amend Chapter
26 of the City Code to clarify and update the process for calculation and collection of
development fees imposed for the construction of 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 Section 26-473(a) of the Code of the City of Fort Collins is hereby
amended to read as follows:
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Sec. 26-473. Electric development fees and charges.
(a) Any person desiring to connect to the City's electric distribution system, or to
construct any structure to be served by said electric distribution system, shall pay
to the utility all applicable electric development fees and charges as described in
this Division prior to construction of the electric distribution system to serve said
connection, whether such connection or the property served is inside or outside of
the corporate limits of the City, in addition to any other applicable fees and
charges described in thisArticle. Notwithstanding the foregoing or any provision
of this Article to the contrary, said fees and charges may be paid over time to the
extent that the deferral of all or any portion of such payment has been approved
by the City Council by resolution. Said development fees shall consist of an
Electric Capacity Fee ("ECF") to recover the allocated cost of the electric
distribution system attributable to the new or modified service requested and a
Building Site Charge ("BSC") to recover the cost of installing on-site electric
service facilities to the user's side of the point of delivery.
Section 2. That Section 26-474(a) of the Code of the City of Fort Collins is hereby
amended to read as follows:
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 most
current construction information and the ECF charges in effect at the time of full
payment.
(1) 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.
(2) Notwithstanding the foregoing, the ECF for any new or modified service
for which an invoice has been issued on or before December 15, 2014, shall be
due in full and must be paid no later than December 31, 2014, in order for
construction of related infrastructure improvements to continue. If payment in
full based upon the ECF charges in effect as of December 15, 2014, is not
received in 2014, no further construction of infrastructure improvements or
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energizing of the subject service shall occur until the full ECF is paid based on the
rate in effect at the time of full payment.
Section 3. That the current Section 26-474(c) of the Code of the City of Fort Collins
is hereby renumbered as Section 26-474(d).
Section 4. That a new Section 26-474(c) of the Code of the City of Fort Collins is
hereby adopted to read as follows:
(c) The utility will schedule and commence construction of a new or modified
electric service upon receipt of payment in full of the associated electric development
fees, and per the Utility Installation Sequence as defined in the Electric Construction
Policies Practices and Procedures. If the utility is unable to commence construction when
requested due to utility workload backlogs, the utility will schedule and commence the
construction of new or modified electric service projects in the same order in which full
payments are received.
Section 5. That Section 26-475(a) of the Code of the City of Fort Collins is hereby
amended to read as follows:
Sec. 26-475. Nonresidential electric development tees 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 most current construction information 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.
(1) 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.
(2) Notwithstanding the foregoing, the ECF for any new or modified service
for which an invoice has been issued on or before December 15, 2014, shall be
due in full and must be paid no later than December 31, 2014, in order for
construction of related infrastructure improvements to continue. If payment in
full based upon the ECF charges in effect as of December 15, 2014, is not
received in 2014, no further construction of infrastructure improvements or
energizing of the subject service shall occur until the full ECF is paid based on the
rate in effect at the time of full payment.
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Section 6. That the current Sections 26-475(c) and (d) of the Code of the City of Fort
Collins are hereby renumbered as Sections 26-475(d) and (e), respectively.
Section 7. That a new Section 26-475(c) of the Code of the City of Fort Collins is
hereby adopted to read as follows:
(c) The utility will schedule and commence construction of a new or modified
electric service upon receipt of payment in full of the associated electric development
fees, and per the Utility Installation Sequence as defined in the Electric Construction
Policies Practices and Procedures. If the utility is unable to commence construction when
requested due to utility workload backlogs, the utility will schedule and commence the
construction of new or modified electric service projects in the same order,in which full
payments are received.
Section 8. That the amendments to Chapter 26 of the City Code contained herein
shall go into effect for all invoices paid on or after December 15, 2014.
Introduced, considered favorably on first reading, and ordered published this 18th day of
November, A.D. 2014, and to be presented for final passage on the 2nd day of December, A.D.
2014.
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Passed and adopted on final reading on the 2nd day of December, A.D. 2014.
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