HomeMy WebLinkAbout058 - 05/17/2016 - AMENDING CITY CODE TO CLARIFY ON-BILL UTILITY FINANCING TERMSORDINANCE NO. 058, 2016
OF THE COUNCIL OF THE CITY OF FORT COLLINS
AMENDING THE CODE OF THE CITY OF FORT COLLINS
TO CLARIFY ON-BILL UTILITY FINANCING TERMS
WHEREAS, the -Home Efficiency Loan Program (also known as On-Bill Utility
Financing) (HELP) was established by Ordinance No. 033, 2012, which amended Chapter 26 of
the City Code to enable Fort Collins Utilities to offer financing and on-bill servicing of customer
loans for energy efficiency, water efficiency and renewable energy upgrade projects; and
WHEREAS, HELP provides low-cost financing for energy efficiency, solar photovoltaic,
and water conservation improvements, in support of Utilities' efficiency and conservation
efforts, and policy goals from Plan Fort Collins, the Climate Action Plan, Energy Policy and
Water Conservation Plan; and
WHEREAS, HELP has been a valuable addition to the City's efficiency and renewable
energy programs, which foster sustainability through reduced energy and water use, local
contractor education and investment in the built environment, and improved home comfort,
health and safety; and
WHEREAS, on February 17, 2015, City Council adopted Ordinance No. 012, 2015,
which expanded eligibility for HELP to business utility customers, set the term for new loans at
20 years, and set a range of loan interest rates to be applied pursuant to procedures.and standards
adopted by the Financial Officer under Section 26-720 of the City Code; and
WHEREAS, on February 22, 2016, the Council Finance Committee expressed support
for staffs additional recommendation that HELP be managed as an ongoing revolving loan fund,
where repaid loan capital is returned to and available for re-issuance through HELP; and
WHEREAS, on April 19, 2016, City Council adopted Ordinance No. 035, 2016, which
increased the allocated outstanding balance limit for HELP to $1,600,000, to meet increasing
demand on the program from recent community initiatives; and
WHEREAS, staff has identified clarifying language needed in Chapter 26 of the City .
Code to better express restrictions set by Ordinance No. 012, 2015 on the interest rate range for
HELP loans, and to set the interest rate on program loans issued on or after June 1, 2016; and
WHEREAS, the City Council has determined it is desirable to clarify in the City Code
the approved interest rate range for new HELP loans and provide flexibility in the administration
of those loans, in furtherance of the benefits available to ratepayers through the program; and
WHEREAS, Article XII of the City Charter authorizes City Council to expend net
operating revenues of the City's utilities for renewal, replacement, extraordinary repair,
extension, improvement, enlargement, and betterment of such utilities, or other specific utility
purposes determined by Council to be beneficial to the ratepayers of said utilities; and
1-
1
WHEREAS, Section 26-720 of the City Code authorizes the Financial Officer to
formulate and promulgate rules and regulations for the administration of Chapter 26 with respect
to credit and lending standards and rates and administrative practices for utility loan programs,
which shall include renewable energy development and utility loan programs. _
NOW,. THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF
FORT COLLINS as follows:
Section 1. That the City Council hereby makes and adopts the determinations and
findings contained in the recitals set forth above.
Section 2. That, for the reasons stated above, the City Council hereby finds and
determines that the Home Efficiency Loan Program (also known as On-Bill Utility Financing) as
described herein will be for the betterment of the affected Utilities, and will be beneficial to the
ratepayers of those Utilities and serve specific public purposes related to energy and water
conservation and efficiency.
Section 3. That Sec. 26-129(f) of the Code of the City of Fort Collins is hereby
amended to read as follows:
Sec. 26-129. Schedule D, miscellaneous fees and charges.
f) The interest rate for water service-related loans shall be no less than two
and five tenths (2.5) percent and no more than ten (10.0) percent, per annum, with the interest
rate for new loans issued on or after June 1, 2016 being four percent. (4.0%), per annum to be
reflected in the administrative rules and regulations adopted by the Financial Officer pursuant to
26-720.
Section 4. That Sec. 26-289(6) of the Code of the City of Fort Collins is hereby
amended to read as follows:
Sec. 26-289. Miscellaneous fees and charges.
6) Interest for wastewater 2.5% - 10%per annum; to be
service-related loans: set for new loans.annually,
with the rate for new loans
issued on or after June 1,
2016 being four percent
4.0%), per annum, to be
reflected in the administrative
rules and regulations adopted
by the Financial Officer
pursuant to § 26-720.
2-
Section 5. That Section 26-464(q) of the Code of the City of Fort Collins is hereby
amended to read as follows:
Sec. 26-464. Residential energy service, schedule R.
q) Loans. Services in the form of loans for electric service-related improvements,
conservation measures or efficiency enhancements shall be documented on forms
determined by the Utilities Executive Director and the Financial Officer. Any such loans
shall be made consistent with the applicable program requirements, credit and risk
standards and interest rate provisions as set forth in this Article and in the administrative
rules and regulations adopted by the Financial Officer pursuant to § 26-720. The interest
rate for such loans shall be no less than two and five-tenths (2.5) percent and no more
than ten (10.0) percent per annum, with the interest rate for new loans to be set annually,
with the rate for new loans issued on or after June 1, 2016 being four percent (4.0%), per.
annum, to be reflected in the administrative rules and regulations adopted by the
Financial Officer. Obligations for repayment. of any such loans are subject to the
provisions of Article XII of this Chapter. Loan-related fees for electric service-related
loans shall be set annually based on related program costs, in the administrative rules and
regulations of the Financial Officer pursuant to § 26-720.
Section 6. That Section 26-465(s) of the Code of the City of Fort Collins is hereby
amended to read as follows:
Sec. 26-465. Residential demand service, schedule RD.
s) Loans. Special services in the form of loans for electric service-related
improvements, conservation measures or efficiency enhancements shall be documented
on forms determined by the Utilities Executive Director and the Financial Officer. Any
such loans shall be made consistent with the applicable program requirements, credit and
risk standards and interest rate provisions as set forth in this Article and in the
administrative rules and regulations adopted by the Financial Officer pursuant to § 26-
720. The interest rate for such loans shall be no less than two and five-tenths (2.5) percent
and no more than ten (10.0) percent, per annum, with the interest rate for new loans to be
set annually with the rate for new loans issued on or after June 1, 2016 being four percent
4.0%), per annum, to be reflected in the administrative rules and regulations adopted by
the Financial Officer. Obligations for repayment of any such loans are subject to the
provisions of Article XII of this Chapter. Loan related fees for electric service-related
loans shall be set annually based on related program costs, in the administrative rules and
regulations of the Financial Officer pursuant to § 26-720.
Section 7. That Section 26-466(s) of the Code of the City of Fort Collins is hereby
amended to read as follows:
3-
Sec. 26-466. General service, schedule GS.
s) Loans. Special services in the form of loans for electric service-related
improvements, conservation measures or efficiency enhancements shall be documented
on forms determined by the Utilities Executive Director and the Financial Officer. Any
such loans shall be made consistent with the applicable program requirements, credit and
risk standards and interest rate provisions as set forth in this Article and in the
administrative rules and regulations adopted by the Financial Officer pursuant to § 26-
720. The interest rate for such loans shall be no less than two and five-tenths (2.5) percent
and no more than ten (10.0) percent, per annum, with the interest rate for new loans to be
set annually with the rate for new loans issued on or after June 1, 2016 being four percent
4.0%), per annum, to be reflected in the administrative rules and regulations adopted by
the Financial Officer. Obligations for repayment of any such loans are subject to the
provisions of Article XII of this Chapter. Loan-related fees for electric service-related
loans shall be set annually based on related program costs, in the administrative rules and
regulations of the Financial Officer pursuant to § 26-720.
Section 8. That Section 26-467(s) of the Code of the City of Fort Collins is hereby
amended to read as follows:
Sec. 26-467. General service 25, schedule GS25.
s) Loans. Special services in the form of loans for electric service-related
improvements, conservation measures or efficiency enhancements shall be documented
on forms determined by the Utilities Executive Director and the Financial Officer. Any
such loans shall be made consistent with the applicable program requirements, credit and
risk standards and interest rate provisions as set forth in this Article and in the
administrative rules and regulations adopted by the Financial Officer pursuant to § 26-
720. The interest rate for such loans shall be no less than two and five-tenths (2.5) percent.
and no more than ten (10.0) percent, per annum, with the interest rate for new loans to be
set annually, with the rate for new loans issued on or after June 1, .2016 being four
percent (4.0%), per annum, to be reflected in the administrative rules and regulations
adopted by the Financial Officer. Obligations for repayment of any such loans are subject
to the provisions of Article XII of this Chapter. Loan-related fees for electric service-
related loans shall be set annually based on related program costs, in the administrative
rules and regulations of the Financial Officer pursuant to § 26-720.
Section 9. That Section 26-712(b) of the Code of the City of Fort Collins is hereby
amended to read as follows:
Sec. 26-712. Miscellaneous fees and charges.
4-
b) The following account and miscellaneous fees and charges shall apply to all City
utility customers receiving service pursuant to the terms of Chapter 26, whether within or
outside of the corporate limits of the City, except as otherwise expressly stated:
Fees and Charges Amount
Interest rate for utility service-related loans: 2.5% - 10% per annum; to be set annually for
new loans, with the rate for new loans issued
on or after June 1, 2016 being four percent
4.0%), per annum, to be reflected in the
administrative rules and regulations adopted by
of the Financial Officer pursuant to § 26-720
Other miscellaneous charges will be based on direct,cost plus fifteen (15)percent indirect costs.
Introduced, considered favorably on first reading, and ordered published this 3rd day of
May, A.D. 2016, and to be presented for final passage on the 17th day of May, A.D. 2016.
o4FOR ....
vi
ATTEST:
ay°rSEAL
oLORP
y Vv
City Clerk
Passed and adopted on final reading on the 17th day of May, A.D. 2016.
yi
pF FbZT
Mayor
ATTEST:
c. ..........
ADO
vV Vv '
City Clerk
5-