HomeMy WebLinkAbout104 - 09/06/2016 - MAKING CERTAIN AMENDMENTS TO CHAPTER 26 OF CITY CODE PERTAINING TO ELECTRIC, WATER AND WASTEWATER RA ti ORDINANCE NO. 104, 2016
OF THE COUNCIL OF THE CITY OF FORT COLLINS
MAKING CERTAIN AMENDMENTS TO CHAPTER 26 OF THE
CODE OF THE CITY OF FORT COLLINS PERTAINING TO ELECTRIC,
WATER AND WASTEWATER RATES, FEES AND CHARGES
ASSOCIATED WITH THE INCOME QUALIFIED RATE PILOT STUDY
WHEREAS, the City Council is empowered and directed by Article XII, Section 6, of e
City harter to fix, establish, maintain and provide for the collection of such rates, fe s or
charges or utility services furnished by the City as will produce revenues sufficient to ay the
costs, exp ses and other obligations of the electric utility, as set forth therein; and
WHE AS, on December 6, 2011, the City Council adopted Ordinance o. 166, 2011,
adjusting the Res' ential Class Electric Rates to support conservation values th ugh a tiered rate
structure, effective nuary 1,2012; and
WHEREAS, in ril 2012, the City Council directed staff to de lop electric service rate
alternatives for low-inco e customers who operate -durable in ical equipment and air
conditioning due to medica onditions, recognizing that such c tomers may not be able to
adjust their energy consumptio in response to conservation in ntives as significantly as other
customers; and
WHEREAS, on May 1, 201 , the City Counc' adopted Ordinance No. 034, 2012,
creating a Medical Assistance Progra (MAP) to qualize, relative to typical residential
customers, the electric service rate charge to qua ' ying low-income customers who operated
certain medically-necessary equipment and ai o itioners; and
WHEREAS, since 2012, advanced lect ' and water meter data has enabled City
Utilities staff to develop improved rate s cture in els and identify opportunities to increase
City utility customer adoption of conser tion behavior nd practices; and
WHEREAS, staff believes at many low-income a 'lity customers who do not qualify
for the MAP, experience similar stacles to adoption of conse vation behaviors and practices as
the customers for which MAP as designed; and
WHEREAS, in 2 4, the City engaged in a comprehensive to -income program review
which led to several aff recommendations to improve conservation d efficiency program
participation by low 'ncome customers; and
WHE S, at the January 27, 2015, City Council work session, staff pr ented customer
efficiency pr gram data and recommendations for incorporating education, incom qualification,
accessibili , internal and local non-profit collaboration, and creative funding into City utility
rate stru ures to incentivize conservation practices by low-income customers; and
WHEREAS, in 2015, staff studied and concluded that development of an'Inc e-
alified Rate (IQR) may be an effective utility conservation strategy, if aimed at equalizi
Postponed Indefinitely on First Reading
September 6, 2016
lative to typical residential customers, the utility costs paid by low-income customers, wh
m not have the ability to participate in conservation programs due to transportation issues, lack
Of ti e, or lack of financial resources to pay conservation or efficiency program costs; and
EREAS, at the January 25, 2016, City Council Finance Committee mee ng, staff
presented p liminary options to improve the City's utility conservation and efficien programs
by adoption a discounted utility service rate structure for low income househ ds, based on
state and region census income data; and
WHEREAS, t the June 14, 2016, City Council work session, st f incorporated City
Council feedback fro January 25, 2016, and presented revised options o improve the City's
utility conservation and ficiency programs, including a discounted ut' ity service rate structure
for households with inc es at or below 165% of the Federa Poverty Level (FPL) as
determined under the povert uidelines updated periodically in th ederal Register by the U.S.
Department of Health and Hum n Services; and
WHEREAS, Larimer Cou administers the stat sponsored Low Income Energy
Assistance Program (LEAP), which q alifies low income pplicants for energy assistance based
on a statewide percentage of FPL, whic or 2017 is anti ipated to be 165% of FPL; and
WHEREAS, staff recommends that e Lar' er County Department of Human Services
LEAP qualification process be utilized to d ermine eligibility for the IQR to achieve
administrative efficiencies and ease of applicati for customers; and
WHEREAS, based on City Coun ' feedba from June 14, 2016, staff recommends
implementation of the IQR for resident' water, wast water, and electric customers through a
two-year pilot study, beginning Januar 1, 2017; and
WHEREAS, staff has de rmined that adequate ut 'ty enterprise fund reserves are
available to offset the revenue ' pact of the proposed IQR di ounts and satisfy the Utilities'
costs of service requirements der the City Charter, without incre sing the service rates paid by
other utility customers duri the pilot study; and
WHEREAS, at ' s February 4, 2016, meeting the Energy Board nsidered the proposed
electric rates, fees a d charges, associated with IQR and recommended pproval of the rate
changes associated ith the pilot study; and
WHE AS, at its January 21, 2016, meeting the Water Board considere the proposed
water and w tewater rates, fees and charges, associated with IQR and recommende approval of
the rate c nges associated with the pilot study; and
HEREAS, the City Manager and staff have recommended to the City Coun '1 the
wat , wastewater, and electric rate adjustments and City Code rate language additions fo all
p icipating customer billings issued with meter readings on or after January 1, 2017
escribed herein; and
Postponed Indefinitely on First Reading
September 6,'2016
WHEREAS, staff believes that an IQR will serve the specific utility purposes
fa ilitating energy and resource conservation by and affordable utility rates for income quali ed
cus mers, which is beneficial to the ratepayers as further outlined in the agenda item su ary
for th June 14, 2016 City Council Work Session and requir/NCILOF
cle XIII, Section of the
City Ch er; and
WH EAS, staff is prepared to mail and publish not recommend utility rate
changes descr ed herein as required by law after adoption ofnance on f st reading and
second reading 11 be scheduled accordingly; and
WHEREAS, ased on the foregoing, it is the desire ofou it to amend Chapter
26 of the City Code to revise the water, wastewater, an r es, fees and charges
associated with an IQR of study.
NOW, THEREFOR BE IT ORDAINED BY THCIL OF THE CITY OF
FORT COLLINS as follows:
rSection 1. That the Cit Council hereby makess the determinations and
findings contained in the recitals set rth above, includingLit not limited to the finding that the
IQR pilot study will serve the speci c utility purpose of facilitating energy and resource
conservation by and affordable utility rat for income alified customers, which is beneficial to
all ratepayers of the utilities as contemplate in Articl III, Section 6 of the City Charter.
Section 2. That Section 26-127 of Code of the City of Fort Collins, regarding
meter rates for residential customers of the wate tility, is hereby amended by the adoption of a
new subsection (a)(4) to read as follows:
Sec. 26-127. - Schedule B, meter tes.
(a) Residential rates
(4) Income qc lified rate (IQR)for residential stomers-pilot study.
a. Objec 've. The City has identified potential b efits available through a
water rate discount for income-qualified residentia customers, including
encouragi g customer participation in water consery ion education and
efficien programs, and lowering the threshold for custo er investments in
reside tial water system upgrades. In order to study these benefits, Utility
Ser ces shall conduct a temporary pilot study implementing a re •dential income
q lified rate (IQR) beginning with first the billing cycle commence on or after
anuary 1, 2017, and concluding after twenty four (24) full billing ycles (the
pilot study period).
b. Scope. During the pilot study period, the IQR shall be charged all
residential customers accepted into and enrolled in the Larimer County L w
Income Energy Assistance Program_(LEAP) and identified as a Utilities Servic
Postponed Indefinitely on First Reading
September 6, 2016
customer. To receive the IQR discount, customers must apply and be qualified r
LEAP.
C. Rate. During the pilot study period, customers qualified for the I as set
forth herein shall receive a discount of forty-five percent (45%) off eir total
onthly water utility service charges based on the fixed and volum ric rates in
S sections (a) (1)-(3) above.'
d. PILOT. IQR customers shall pay the full charge for p ments in lieu of
taxes ( OT) and franchise due under Code Section 2 -118, without any
discount o the six percent (6%) rate set forth therein.
Section 3. That Se 'on 26-278 of the Code of the Cit of Fort Collins, regarding
classification of wastewater utilit users, is hereby amended by the doption of a new subsection
(9) to read as follows:
Sec. 26-278.— Classification o secs.
(9) Category 1 - Income qualifi rate (IQR) ilot study. Users in this category shall'
include Category A, B, and C custom _s partici ting in the IQR pilot study, as described'
in Section 26-279.
Section 4. That Section 26-279 of e C e of the City of'Fort Collins, regarding
monthly service charges for wastewater utili services, 's hereby amended by the adoption of a
new Subsection (c)(7) to read as follows:
Sec. 26-279. —Service charges- categories.
(c)
(7) The rate r users in Category I shall be based n the rates for Categories
A, B, and C, 'scounted for participating income quali d residential customers
as follows:
a Objective. The City has identified potential enefits available
rough wastewater rate discount for income-qualified sidential users,
including encouraging user participation in water conserva 'on education
and efficiency programs, and lowering the threshold for user 'nvestments
in residential water and wastewater system upgrades. In orde to study
these benefits, Utility Services shall conduct a temporary pil t study
implementing a residential income qualified rate (IQR) beginning w' h the
first billing cycle commencing on or after January 1, 2017, and conclu ing
after twenty four (24)full billing cycles (the_pilot study period).,
Postponed Indefinitely on First Reading
September 6, 2016
I
b. Scope. During the pilot study period, the IQR shall be charged o
all users in Categories A, B, and C who are accepted into and enroll in
the Larimer County Low Income Energy Assistance Program (LEA and
identified as a Utilities Services customer. To_receive the IQR 'scount,
users must apply and be qualified for LEAP..
c. Rate. During the pilot study period, users qualified r the IQR as
set forth herein shall receive a discount of fifty percent 50%) off their
tal monthly wastewater utility service charges based o_ the Category A,
B, nd C fixed and volumetric rates in Section 26-280.
d. IL.OT. IQR customers shall pay the full harge for payments in
lieu of xes (PILOT) and franchise due and r Code Section 26-118,'
without an discount of the six percent (6%) r e set forth therein
Section 5. That Section 262 80 of the Code of the ity of Fort Collins, regarding the
schedule of rates for waste water users b category, is hereb amended by the adoption of a new
category row to the schedule of rates to rea as follows:
Sec.26-280. - Service charges establis ed by tegory.
Class of
Category Rate
Customer
Single-family re/aee (flat rate); Sin - 50% discount on total monthly
family residentiared water use); wastewater utility service
Duplex (two-famtial users (flat rate); charges, on the Category A, B,
I Duplex (two-famntial users (metered and C fixed and volumetric rates
water use); and y residential user in Section 26-280 (charged to
(more than two dits including mobile, ers participating in IQR pilot
home arks). study)
Section 6. That ection 26-464 of the Code of the City of\nes, regarding
residential electric rates chedule R), is hereby amended by the adoptioubsection (t)
to read as follows:
Sec. 26-464 Residential energy service, schedule R.
(t) come Qualified Rate (IQR) Pilot Study.
(1) Objective. The City has identified potential bene throw h anelectric rate discount for income-qualified residentias, inclu 'ngencouraging customer participation in electricity consucation aefficiency programs, and lowering the threshold for cestments in
Postponed Indefinitely on First Reading
September 6, 2016
residential electric system upgrades. In order to study these benefits, Uti ' y
\ed
es shall conduct a temporary pilot study implementing a residential in me
ied rate (IQR) beginning with the first billing cycle commencing on after
ry 1, 2017, and concluding after twenty four (24) full billing cy es (the
tudy period),
Scope. During the pilot study period, the IQR shall be arged to all
ntial customers accepted into and enrolled in the Lari r County Low
Energy Assistance Program (LEAP), identified as a tilities Services
e and who are not net-metering customers. To recei the IQRdiscount,
ers ust apply and be qualifiedfor LEAP.
Rate. ring the pilot study period, customers alified for the IQR as set
herein shal eceive the following discount off t e total monthly Schedule R
ic utility sery e charges in Subsection (c):
IQR discount on total\carges
fixed, distribu on facilities,.
and energy and dema (but not o ayment in, 35lieu of taxes (PILOT) chise amo is due),
(4) PILOT. IQR customers s al pay the full charge for payments in lieu of
taxes (PILOT) and franchise due u er,this Section 26-464, without any discount
of the six percent (6%) rate set fo h h ein.
Section 7. That Section 26-465 f the Code of the City of Fort Collins, regarding
residential demand service electric rates ( chedule RD) is ereby amended by the adoption of a
new subsection (t) to read as follows:
Sec. 26-465. Residential d mand service,schedule R
(t) Income Qualified ate (IQR)Pilot Study..
(1) Objec ve. The City has identified potential bene ' s available through an
electric ra discount for income-qualified residential stomers, including
encourag' g customer participation in electricity conserva ' n education and
efficien y programs, and lowering the threshold for custom investments in
resid tial electric system upgrades. In order to study these nefits, Utility
Ser ices shall conduct a temporary pilot study implementing a resi tial income
alified rate (IQR) beginning with the first billing cycle commencin n or after
anuary 1, 2017, and concluding after twenty four (24) full billing c les (the
pilot study period).
(2) Scope. During the pilot study period, the IQR shall be charged to If
residential customers accepted into and enrolled in the Larimer County Lo
Income Energy Assistance Program (LEAP), identified as- a Utilities Services
Postponed Indefinitely on First Reading
September 6, 2016
\Sche
and who are not net-metering customers. To receive the IQR disco t,
must apply and be qualified for LEAP.
ate. During the pilot study period, customers qualified for the I as set
in shall receive the following percentage discount off the tot monthly
RD electric utility service charges in Subsection (c) above:,
IQR disc\anenergy
total monthly fixed, demand, distribution
facilities charges (but not payment in lieu oftaxes (Pd franchise amounts due)
(4) PILOT. IQ customers shall pay the full cha e for payments in lieu of
taxes (PILOT) and fran ise due under this Section -465, without any discount
of the six percent (6%) rat set forth herein
Section 8. That the amendmen herein are effe ive and shall go into effect as
follows:
A. IQR pilot study discounted ater tes shall apply to water service charges
on the basis of meter reading o or after January 1, 2017; and
B. IQR pilot study discounted wa ewater rates shall apply to wastewater
service charges on the bas' of met readings on or after January 1, 20174
and
C. IQR pilot study disc unted electric rate shall apply to energy consumed
on or after January , 2017.
Introduced, considered.favora y on first reading, and order published this 6th day of
September, A.D. 2016, and to be pr sented for final passage on the 20 day of September, A.D.
2016.
Mayor
ATTEST:
City Clerk
Postponed Indefinitely on First Reading
September 6, 2016
J
p
P sed and adopted on final reading on the 20th day of September, A.D. 2016.
Mayor
ATTEST:
City Clerk
Postponed Indefinitely on First Reading
September 6, 2016