HomeMy WebLinkAbout054 - 05/01/2018 - AMENDING CHAPTER 26 OF THE CITY CODE TO ADOPT DISCOUNTS APPLICABLE TO WATER, WASTEWATER AND ELECTRIC ORDINANCE NO. 054, 2018
OF THE COUNCIL OF THE CITY OF FORT COLLINS
AMENDING CHAPTER 26 OF THE CODE OF THE CITY OF FORT
COLLINS TO ADOPT DISCOUNTS APPLICABLE TO WATER,
WASTEWATER AND ELECTRIC RATES, FEES, AND CHARGES
APPLIED UNDER AN INCOME-QUALIFIED ASSISTANCE PROGRAM
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 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, the rates, fees or charges for utility services set forth herein are necessary to
produce sufficient revenues to provide the utility services described herein; and
WHEREAS, the revenue from the rates, fees or charges for utility services set forth herein
shall be used to defray the costs of providing such utility services as required by the Charter and
the City Code; and
WHEREAS, as presented at the January 30, 2018, City Council work session, staff has
identified benefits available through an Income-Qualified Assistance Program ("IQAP") that
improves adoption of conservation practices by qualifying low-income ratepayers who "opt-in" to
receive discounts that produce reasonable utility bill affordability; and
WHEREAS, based on direction provided by the City Council on January 30, 2018, staff
developed optimal program components,requirements,and utility service discounts for residential
water, wastewater, and electric services, as further set forth herein; and
WHEREAS, Utilities Services staff has recommended a stepped rollout of an IQAP to
produce data for City Council on specific utility purpose goals, including ensuring the discount
accounts. for state and regional programs already offering similar benefits to qualifying
participants, achieving tangible and sustainable efficiency and conservation improvements at
participant addresses, and verifying and improving the City's understanding of low-income
efficiency and conservation locations on which to focus outreach and monitoring efforts; and
WHEREAS, Articles III, IV, and VI of Chapter 26 of the City Code establish the water,
wastewater, and electric utilities as utility services furnished by and respective enterprises of the
City; and
WHEREAS, staff designed proposed IQAP rates in consideration of regional discounts
available to low-income utility customers, including Larimer County's Low-income Energy
Assistance Program (LEAP), and City Charter and Code requirements that utility rates generate
sufficient revenues to provide the utility services described herein; and
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WHEREAS, the Water Board considered proposed water and wastewater-related rate
adjustments for IQAP initially on June 2, 2016 and again at its April 5, 2018 regular meeting, and
recommended approval of the proposed adjustments; and
WHEREAS, the Energy Board considered proposed electric-related rate adjustments for
IQAP customers on February 4, 2016, and provided recommendations of approval to'City Council
on May 3, 2016; 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 electric and water-related rates, fees, and charges 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 26-127(a) of the Code of the City of Fort Collins is hereby
amended to read as follows:
Sec. 26-127. - Schedule B, meter rates.
(a) Residential rates.
(1) Residential customers with one (1) dwelling unit shall pay the sum of the
following changes:
a. Base monthly charge for residential customers with one(1)dwelling unit $16.86
b. Quantity monthly charge for residential customers with one (1) dwelling
unit(volumetric)
Tier I - For the first seven thousand (7,000) gallons used per month, per $2 61 1
one thousand(1,000)gallons
Tier 2 - For the next six thousand (6,000) gallons used per month, per.one $3.000
thousand (1,000)gallons
Tier 3 - For all additional gallons used per month, per one thousand $3.451
(1,000)gallons
c. Income-qualified assistance discount. Discount applied to monthly base
and Tier 1 volumetric'charges for IQAP participating residential customers in 23 percent
properties with one(1)dwelling unit,as further described in Section 26-724 of
the Code.
(2) Residential customers with two (2) dwelling units shall pay the sum of the
following charges:
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a. Base monthly charge for residential customers with two (2)dwelling units $17.74
b. Quantity monthly charge for residential customers with two (2) dwelling
units(volumetric)
Tier I -For the first nine thousand (9,000)gallons used per month,per one $2 253
thousand(1,000)gallons
Tier 2 -For the next four thousand(4,000)gallons used per month,per one $2.589
thousand(1,000)gallons
Tier 3 -For all additional gallons used per month,per one thousand(1,000) $2.979
gallons
C. Income-qualified assistance discount. Discount applied to monthly base
and Tier 1 volumetric charges for IQAP participating residential customers in 23 percent
properties with two (2) dwelling units, as further described in Section 26-724
of the Code.
(3) Residential customers with more than two (2) dwelling units shall pay the
sum of the following charges:
a. Base monthly charge for residential customers with more than two (2)
dwelling units
First dwelling unit $12.75
Second and each additional dwelling unit $4.24
b. Quantity monthly charge for residential customers with more than two (2)
dwelling units(volumetric)
Winter-per one thousand(1,000)gallons used in the winter season months $1.853
of November through April
Summer - per one thousand (1,000) gallons used in the summer season
$2.316
months of May through October
( The meter reading date shall generally determine the seasonal monthly
quantity charge; however, no customer shall be billed more than six(6)full
billing cycles at the summer quantity charge.
Ic. Income-qualified assistance discount.-A discount applied to the monthly
base and volumetric charges above for IQAP participating residential
customers in properties with more than two(2)dwelling units who hold water 23 percent
and wastewater service accounts in their own names,subject to Section'26-724
of the Code.
Section 3. That Section 26-280 of the Code of the City of Fort Collins is hereby
amended to read as follows:
Sec. 26-280. Service charges established by category.
The schedule of rates for each category described in § 26-279 shall be as follows:
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Category Class Of Rate
Customer
Single-family reside ntial'user Per month $40.05
(flat rate)
1. Per month(base) $17.90
2. Plus, per 1,000 gallons per month
$3.477
(volumetric)
3. Income-qualified assistance discount.
Discount applied to monthly base and
volumetric charges for IQAP participating 23 percent
residential customers, as further described in
A Section 26-724 of the Code.
Single-family residential user
(metered water use) Note:
1. For single family customers who have not yet established a winter
quarter water use at the service address,a system average of 4,000
gallons per month shall be billed.
2. After establishment of a winter quarter water use at the service
address,the monthly amount billed shall be based on a minimum of
3,000 gallons per month.
1. Per month(base) $55.41
2. Income-qualified assistance discount.
Duplex(two-family)residential Discount applied to monthly base charge for
users(flat rate) IQAP participating residential customers,.as 23 percent
further described in Section 26-724 of the
Code.
g 1. Per month(base) $20.52
2. Plus,per 1,000 gallons per month, to be
calculated on a monthly basis (volumetric) $3.081
Duplex(two-family)residential
users(metered water use) 3• Income-qualified assistance discount.
Discount applied to monthly base and
volumetric charges for IQAP participating 23 percent
residential customers, as further described in
Section 26-724 of the Code.
c
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Note:
1. For duplex customers who have not yet established a winter
quarter water use at the service address, a system average 6,200
gallons shall be billed.
2. After establishment of a winter quarter use at the service address,
the monthly amount billed shall be based on a minimum of 4,000
gallons per month.
1. Base charge per month per dwelling unit $2.75
served(base)
2. Plus, per 1,000 gallons per month $3.498
(volumetric)
3. Income-qualified assistance discount.
Discount applied to monthly base and
volumetric charges for IQAP participating
residential customers in properties with more 23 percent
than two(2)dwelling units who hold water and
Multi-family residential user wastewater service accounts in their own
(more than two dwelling units names,subject to Section 26-724 of the Code.
C including mobile home parks)
and winter quarter based Note:
nonresidential user
1. For multi-family customers who have not yet established a winter
quarter water use at the service address, a system average of 3,200
gallons per living unit shall be billed. However,Category D rates will
apply to multi-family residential units under construction during the
period of service from the installation of the water meter to the date
the certificate of occupancy is issued.
2. After establishment of a water quarter use at the service address,
the monthly amount billed shall be per 1,000 gallons of winter
quarter water use,calculated on a monthly basis.
Section 4. That the table contained in Section 26-464(c)(2) of the Code of the City of
Fort Collins are hereby amended and renumbered to read as follows:
Sec. 26-464. Residential energy service, schedule R.
(e) Monthly rate.
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(2) . . .
a. Fixed Charge Per account $5.81
b. Distribution facilities charge Per kWh 1 $0.0197
c. Energy and demand charge
1. Summer. For billings based on consumption during the months of May,June,July,
August, and September
(a)On-Peak(Mon-Fri,2 pm to 7 pm,excluding holidays) Per kWh $0.2015
(b) Off-Peak Per kWh 1 $0.0428
2 Non-summer. For billings based on consumption during the months of January through
April and October through December.
(a) On-Peak(Mon-Fri, 5 pm to 9 pm,excluding Per kWh $0.1788
holidays)
(b) Off-Peak Per kWh $0.0411
d. Energy efficiency tier charge,per kilowatt hour for total
consumption over 700 kWh in a billing month(regardless of Per kWh $0.0166
on-peak or off-peak)
e. Payment in lieu of taxes(PILOT)and franchise.
6 percent
A charge based on all monthly service charges billed pursuant to this Section
f. Income-qualified assistance discount. Discount applied to monthly charges in
"a.", ..b.", and "c." for IQAP participating residential customers, as further 23 percent
described in Section 26-724 of the Code.
Section 5. That the table contained in Section 26-465(c)(2) of the Code of the City of
Fort Collins is hereby amended to read as follows:
Sec. 26-465. Residential demand service, schedule RD.
(c) Monthly rate.
(2) . . .
a. Fixed Charge Per account $5.81
b. Distribution facilities charge Per kWh $0.0257
c. Energy and demand charge
I. Summer.For billings based on consumption during the months of May,June,July and August,and
September
a) On-Peak(Mon-Fri,2 pm to 7 pm,excluding holidays) Per kWh $0.2015
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b) Off-Peak Per kWh 1 $0.0428
2. Non-summer.For billings based on consumption during the months of January through April and
October through December.
a) On-Peak(Mon-Fri,5 pm to 9 pm,excluding holidays) Per kWh $0.1788
b) Off-Peak Per kWh $0.0411
d. Payment in lieu of taxes(PILOT)and franchise.
6 percent
A charge based on all monthly service charges billed pursuant to this Section
e. Income-qualified assistance discount. The discount applied to the monthly charges in"a.",
"b.", and "a" above for IQAP participating residential customers, as further described in 23 percent
Section 26-724 of the Code.
Section 6. That a new Section 26-724 is added to the Code of the City of Fort Collins
to read as follows:
Sec. 26-724. Residential Income-Qualified Assistance Program.
(a) Purpose. To benefit ratepayers of the affected Utilities by enabling residents with
household incomes below a certain level to commit a reasonable level of household income
to monthly utility bills and in doing so, achieve greater conservation and efficiency
improvements and consumption behaviors in qualified program households.
(b) Qualification. As set forth in this Section, a discount on certain components of City
utility service rates applied under this Chapter shall be available for qualified customers
who satisfy the following criteria:
(1) maintain an account in the customer's name directly for City residential
electric and/or water and wastewater utility services,except that customers residing
in multi-family properties with more than two (2) dwelling units must hold water
service accounts in their own names to satisfy this criterion; and
(2) have an annual household income that qualifies for the Larimer County
Low-Income Energy Assistance Program (LEAP); and
(3) one or more users at the account address apply for and enroll in LEAP
during the preceding LEAP program year (November 1 through April 30), and
when LEAP qualification is based on a member of the household other than the
customer, the customer produces proof of lawful presence in the U.S. in the valid
forms accepted by LEAP; and
(4) exercise reasonable efforts to improve the water and energy efficiency of
the account premise, participate in Active Energy Management Education sessions,
and meet program milestones determined according to guidelines established by
the Utilities Executive Director, which guidelines may include procedures for
disenrollment.
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(c) Applications. Applications for discounts under this Section must be submitted
annually in accordance with an administratively established schedule available from the
Fort Collins Utilities.
(d) Rates. The discounts applied to monthly base and volumetric rates for qualified
IQAP customers shall be as set forth in Sections 26-127(a), 26-280, 26-464(c), and 26-
465(c) of this Code on meter readings during the period of August 1 through July 31
(beginning October 1, 2018 and ending July 31, 2021).
(e) Appeal of decision. A decision that an applicant does not qualify to participate in,
this program, except when the decision is based on lack of qualification for LEAP, may be
appealed to the Utilities Executive Director, who shall, prior to making his or her decision,
and as he or she deems appropriate, confer with one (1) or more financial experts in
reviewing such appeal,_including LEAP officials.
Section 7. That the modifications set forth shall be effective for meter readings on or
after October 1, 2018.
Introduced, considered favorably on first reading, and ordered published this 17th day of
April, A.D. 2018, and to be presented for final passage on the 1 st day of May, A.D. 2018.
Mayor
ATTEST:
O�FORTCO`
SEAL EN
ity Cok
Passed and adopted on final reading on the 1st day of May, A.D. 2018.
Mayor
ATTEST:
pORr C
•� . SEAL
C!ity Cl k
O•COLORFA
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