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HomeMy WebLinkAbout012 - 02/17/2015 - AMENDING CITY CODE TO MODIFY ON-BILL UTILITY FINANCING TERMS AND ALLOW FOR ON-BILL UTILITY FINANCING ORDINANCE NO. 012, 2015 OF THE COUNCIL OF THE CITY OF FORT COLLINS AMENDING THE CODE OF THE CITY OF FORT COLLINS TO MODIFY ON-BILL UTILITY FINANCING TERMS AND ALLOW FOR ON-BILL UTILITY FINANCING OF BUSINESS CUSTOMERS WHEREAS, since January 2013, Fort Collins Utilities has offered a pilot on-bill financing program to assist residential customers with financing for energy efficiency upgrades, and water supply line repairs and replacements (the "On-Bill Utility Financing Program"); and WHEREAS, the primary purpose of the On-Bill Utility Financing Program (or "Home Efficiency Loan Program") is to provide utility customers with low-cost financing for energy efficiency, solar photovoltaic, and water conservation improvements to support the outcomes adopted in City of Fort Collins policies and plans, such as the Climate Action Plan, Energy Policy and Water Conservation Plan; and WHEREAS, the Program can also benefit Utilities business customers; and WHEREAS, the Financial Officer has established rules and regulations for the administration of the Program with respect to the billing and collection of utility fees and charges, credit and lending standards, and rates and administrative practices per Section 26-720; of the City Code; and WHEREAS, City Council previously approved the use of Fort Collins Utilities reserve funds to provide a maximum outstanding balance of$800,000 for the On-Bill Utility Financing Program in prior budgets, budget exceptions and balance sheet reserve actions; and WHEREAS, a key purpose of the pilot On-Bill Utility Financing Program has been to further support the policy goals of Plan Fort Collins, the Climate Action Plan, Energy Policy and Water Conservation Plan; and WHEREAS, the Program has been a valuable addition to Utilities' efficiency and renewable energy programs, which foster sustainability through energy and water use reductions, local contractors and investment in the built environment and improved home comfort, health and safety; and WHEREAS, the City Council has determined it is desirable to maintain an appropriate and predictable range of interest rates for loans in the pilot On-Bill Utility Financing Program, while providing some flexibility for administration of specific loans based on administrative procedures and standards adopted by the Financial Officer, pursuant to existing authority under Section 26-720 of the City Code; and WHEREAS, on January 8, 2015, the Energy Board reviewed and voted to recommend adoption of the proposed On-Bill Utility Financing program updates to the City Code; and _ 1 _ WHEREAS, in accordance with the foregoing, the Council is adopting revisions to Chapter 26 of the City Code, as set forth herein. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows: Section 1. That, for the reasons stated above, the City Council hereby finds and determines that the On-Bill Utility Financing Program as described herein will be for the betterment of the affected Utilities, and will be beneficial to the rate payers of those Utilities. Section 2., That Section 26-129 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 to be set annually, based on the City's cost of capital minus 100 to 200 basis points, in the administrative rules and regulations of the Financial Officer pursuant to § 26-720. (g) Loan-related fees for water 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 3. That Section 26-130 of the Code of the City of Fort Collins is hereby amended to read as follows: Sec. 26-130. Agreements for special water services. (b) Special services in the form of loans for water 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, fees 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. Obligations for repayment of any such loans are subject to the provisions of Article XII of this Chapter. Section 4. That Section 26-289 of the Code of the City of Fort Collins is hereby amended to read as follows: See. 26-289. Miscellaneous fees and charges. - 2 - The following is a schedule of miscellaneous fees and charges: Description Amount (1) Connection fees and Fees shall be set forth as in Subsection 26-712(b) service charges (2) Industrial discharge permits: a. Administration $76.00 annually b. Surveillance Determined for each user annually, based on direct cost plus 15% indirect costs, billed monthly (3) Laboratory support Determined on a case-by-case basis based on services direct cost plus 15% indirect costs (4) Materials and labor Determined on a case-by-case basis based on provided by City direct cost plus l5% indirect costs (5) Charges for disposal at the Fort Collins Regional Sanitary Waste Transfer Station: a. Septic tanks, vaults, privies, portable toilets: Generated within $0.071 per gallon Latimer County Generated outside $0.108 per gallon Larimer County b. Recreational vehicle sanitary waste holding tanks: Residential No charge for individual disposal at Transfer customers of the City of Station Fort Collins Wastewater Utility Others $2.35 base fee plus $0.071 per gallon (6) Interest rate for 2.5% - 10% per annum; To be set for new loans wastewater service- annually based on the City's cost of capital minus related loans: 100 to 200 basis points in the administrative rules and regulations of the Financial Officer pursuant to § 26-720 (7) Loan-related fees for To be set based on related program costs in the wastewater service- administrative rules and regulations of the - 3 - related loans- Financial Officer pursuant to § 26-720 (8) Miscellaneous fees Determined on a case-by-case basis based on direct costs plus 15% indirect costs Section 5. That Section 26-290 of the Code of the City of Fort Collins is hereby amended to read as follows: Sec. 26-290. Agreements for special wastewater services. (b) Special services in the form of loans for wastewater 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, fees 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. Obligations for repayment of any such loans are subject to the provisions of Article XII of this Chapter. Section 6. That Section 26-464 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, based on the City's cost of capital minus 100 to 200 basis points, in the administrative rules and regulations of 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. - 4 - Section 7. That Section 26-465 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 based on the City's cost of capital minus 100 to 200 basis points, in the administrative rules and regulations of 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 26-466 of the Code of the City of Fort Collins is hereby amended by the addition of new subparagraph (s) to read in its entirety as follows: 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 based on the City's cost of capital minus 100 to 200 basis points, in the administrative rules and regulations of 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 26-467 of the Code of the City of Fort Collins is hereby amended by the addition of anew subparagraph (s) to read in its entirety as follows: -5 - 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, based on the City's cost of capital minus 100 to 200 basis points, in the administrative rules and regulations of 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 10. That Section 26-712 of the Code of the City of Fort Collins is hereby amended as follows: Sec. 26-712. Utility bill and account charges authorized; procedures. (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 Service connection fee for account with $ 19.65 one or more metered services (including nonmetered services for the same account) Customer-initiated rate change (after 90 19.65 days of new service) Service connection fee for account with 10.00 only nonmetered services (stormwater, wastewater, wind, flat commercial electric, sprinkler clocks, cable towers and floodlights) - 6 - Service fee to reinstate an account to the $ 10.00 owner/property manager between tenants Manual meter reading charge, per month, 11.00 charged to service addresses where per month metering equipment without remote communications capability is used, requiring an on-site visit to collect use data for water and/or electric service Turn-off notice fee. 10.00 Reconnect fee per service for water or 20.00 electric following disconnection for delinquency Trip charge for special services requested 19.65 by customer during normal service hours After-hours reconnect or after-hours trip 85.35 charge for special service requested by customer — Water (after 5:00 p.m. weekdays or weekend/holiday) After-hours reconnect or after-hours trip 85.35 charge for special service requested by customer — Electric (after 5:00 p.m. weekdays or weekend/ holiday) Return item fee (check, electronic fund 25.00 transfer, credit card, etc.) Owner-requested repair disconnect fee, 20.00 per trip Research/document fee per hour 20.00 - 7 - Interest rate for utility service-related 2.5% - 10% per annum; To loans: be set for new loans based on the City's cost of capital minus 100 to 200 basis points in the administrative rules and regulations of the Financial Officer pursuant to § 26-720 Loan-related fees for wastewater service- To be set based on related related loans= program costs in the administrative rules and regulations of the Financial Officer pursuant. to § 26- 720 Section 11. That Section 26-720 of the Code of the City of Fort Collins is hereby amended to read as follows: See. 26-720. Administrative rules and regulations. The Financial Officer shall formulate and promulgate rules and regulations for the administration of this Article, not inconsistent with the provisions of this Article with respect to the billing and collection of utility fees and charges, credit and lending standards and rates and administrative practices for utility loan programs, which shall include, but not be limited to, efficiency-related conditions on loans for renewable energy development; extension of. utility loans of up to twenty (20) years in total tenns length, at the option of the borrower, not to exceed the useful life of the funded improvements; and other matters relating to the administration of customer accounts. Said rules and regulations may regulate without limitation, the forms and procedures for giving notice to customers; policies for adjusting billed amounts as necessary to correct errors or for administrative efficiency or to achieve equity; procedures for appeals; and procedures for the documentation of liens. Any rules or regulations promulgated by the Financial Officer hereunder shall be effective upon the Financial Officer's filing of the same with the City Clerk. - 8 - Introduced, considered favorably on first reading, and ordered published this 20th day of January, A.D. 2015, and to be presented for final passage on the 17th day of February, A.D. 2015. 4 Orr FC)'P :• l� �� t Z Ma/or ATTEST: W(N V IGiJC •..•• .••. .ADO City Clerk Passed and adopted on final reading on the 17th day of February, A.D. 2015. Mayor ATTEST: FORT CO LP City Clerk • O ••COIOVL - 9 -