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HomeMy WebLinkAbout141 - 11/17/2015 - AMENDING CHAPTER 26 OF CITY CODE REGARDING CALCULATION AND COLLECTION OF DEVELOPMENT FEES IMPOSED FO ORDINANCE NO. 141, 2015 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 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, City Council has determined that new development should pay its proportionate share of the capital costs for new or modified electric service connections in the form of the Electric Capacity Fee and Building Site Charge (hereinafter "Electric Development Fees") described at Sections 26-474 and 26-475 of the City Code; and WHEREAS, the City Manager and Electric Utility staff recommend the City Code be modified to clarify how Electric Development Fees are set and collected, as well as to update the rates to reflect increases in the operational facility capital costs required to provide new or modified electric service connections; and WHEREAS, the City Manager and City staff have recommended to City Council an adjustment of the scope of the Electric Development Fees imposed by City Code Sections 26- 474 and 26-475 to permit inclusion in its calculation of the City's quantifiable and reasonable growth-related costs for impacts to Utilities Services' capital administrative facilities that are reasonably related to the overall cost of and required in providing electric services to serve new development, as permitted by Colorado law. WHEREAS, Utilities staff have also identified formatting and maintenance updates to the City Code to improve the clarity with which Electric Development Fees are explained; and WHEREAS, the Energy Board considered the proposed Electric Development Fees and language clarifications for 2016 at its October 3, 2015, meeting and recommended approval of the fee changes and City Code updates; and WHEREAS, the City Manager and staff have recommended to the City Council the following Electric Development Fee adjustments and City Code language clarifications for all new or modified electric service connections requested on or after January 1, 2016; and WHEREAS, based on the foregoing, it is the desire of the City Council to amend Chapter 26 of the City Code to revise the Electric Development Fees. 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. - 1 - Section 2. That Section 26-473 (b) of the Coe of the City of Fort Collins is hereby amended to read as follows: Sec. 26-473. - Electric development fees and charges. (b) The ECF shall be based upon and used to defray growth-related capital expansion costs of substations and distribution infrastructure and related facilities, and actual costs that have been or will be incurred by the utility to plan and provide service loads to new development, as more specifically described in this Division. These costs shall include the cost of labor and materials to install substation transformers, distribution transformers, primary cable, vaults, conduit, connections, switches, fuses, circuit breakers and other infrastructure and may include capital costs of administrative facilities that are reasonably related to the overall cost of and required in providing electric services to serve new development. The ECF shall vary with the electrical capacity requirements, lot size and lineal feet of dedicated roadway, and shall be based on the actual cost of construction of any required off--site improvements. The parameters and rates shall be reviewed annually by the City Manager, and the fees shall be presented to the City Council for approval no less frequently than biennially. Section 3. That Section 26-474 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 main disconnect size (not fuse sizing) and the ECF charges in effect at the time of full payment. 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. (b) The ECF shall be the total of the site footage charge, dwelling charge and systems modification charge, to be determined as follows: (1) The site footage charge shall be the combined total of: a. Per square foot of developed site square footage, including all applicable tracts but excluding the area of dedicated public rights-of-way and excluding areas $0.05186 dedicated to the City as parkland,however, specific areas within City owned parks that require electric service will be charged - 2 - b. Plus, per lineal foot of the developed site abutting a dedicated street or $10.39 roadway (2) The dwelling unit charge shall be as follows: a. For a single-family panel size with one-hundred-fifty (150) amp service $1,408 (nonelectric heat),per dwelling unit b. For a single-family panel size with two-hundred (200) amp service or with $2 283 one-hundred-fifty(150)amp service with electric heat,per dwelling unit C. For a multi-family panel size with one-hundred-fifty (150) amp service $939 (nonelectric heat),per dwelling unit d. For a multi-family panel size with two-hundred (200) amp service or with $1,612 one-hundred-fifty(150)amp service with electric heat,per dwelling unit (3) A system modifications charge will apply when a new or modified service will require infrastructure in addition to or different from the standard base electrical system model. The differential costs associated with such system modifications will be included in the calculated ECF: (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 Service Standards. 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. (d) A Building Site Charge ("BSC") for any new or modified residential service shall consist of the total of the applicable charges as described in this Subsection (d), and shall be paid as specified herein. (1) When any new or modified multi-family service requires extending primary circuitry to an on-site transformer, this component of the "BSC charge shall be invoiced and paid in the same manner and at the same time as the ECF is invoiced and paid pursuant to Section 26-474(a), and shall be the total of the primary circuit charge, transformer installation charge and any additional charges. The amounts shall be the same as the BSC for nonresidential development, as shown in Section 26-475(d). (2) When any new or modified residential service requires installation by the Utility of secondary service the BSC shall include a secondary service charge (SSC), and shall be paid at the time of building permit and based upon the current rates as of the time of issuance of the building permit. - 3 - The SSC shall be the total of the secondary service charges, determined as follows: a. The secondary service charge shall be as follows: Secondary Charge Plus Per-Foot Service Size (up to 65 feet) Charge for Each Foot Over 65 1/0 service $682.00 $4.99/Foot 4/0 service $806.00 $5.63/Foot 350 kCM Service $912.00 $7.23/Foot 1/0 Mobile Home Service $532.00 N/A 4/0 Mobile Home Service $638.00 N/A (3) Actual special costs to the utility of installation of primary or secondary service resulting from site conditions shall be, included in the BSC as additional charges. Such conditions may include, but are not limited to, frozen or rocky soil, concrete cutting and asphalt replacement. Section 4. That Section 26-475 of the Code of the City of Fort Collins is hereby amended to read as follows: Sec. 26-475. Nonresidential 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 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 main disconnect size (not fuse sizing) 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. 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. - 4 - (b) The ECF shall be the total of the site footage charge, kVA service charge and systems modification charge, to be determined as follows: (1) The site footage charge shall be the combined total of: a. Per square foot of developed site square footage, including all applicable tracts but excluding the area of dedicated public rights-of-way and excluding areas $0.05186 dedicated to the City as parkland,however, specific areas within City owned parks that require electric service will be charged b. Plus, per lineal foot of the developed site abutting a dedicated street or $38.80 roadway (2) The kVA service charge shall be determined as follows. a. For customer electric loads served by the utility the kVA service charge shall be: 1. Utility-owned transformers: the kVA service charge per kilovolt-amp (kVA)of service load rating as determined by main disconnect size(not fuse $70.31 sizing). 2. Customer owned transformers: the kVA service charge per kilovolt-amp $61.13 (kVA)of service load rating. b. For the utility to receive customer generation in excess of the customer's electric service provided by the utility, the following KVA service charge will also apply: 1. Utility-owned transformers: the kVA service charge per kilovolt-amp (kVA)of generation service rating in excess of the service load rating as paid $61.13 per Subsection (b)(2)a.I. Such ratings shall be determined by the Utilities Executive Director. 2. Customer owned transformers: the kVA service charge per kilovolt-amp (kVA) of generation service rating in excess of the service load rating paid $43.63 per Subsection (b)(2)a.2. Such ratings shall be determined by the Utilities Executive Director. (3) A system modifications charge will apply when a new or modified service will require infrastructure in addition to or different from the standard base electrical system model. The differential costs associated with such system modifications will be included in the calculated ECF. (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 Service Standards. If the - 5 - r 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. (d) A Building Site Charge ("BSC") for extending primary circuitry to the transformer for any new or modified nonresidential service shall be invoiced and paid in the same manner and at the same time as the ECF is invoiced and paid pursuant to Section 26- 475(a). The BSC shall be the total of the primary circuit charge, transformer installation charge and any additional charges, determined as follows: (1) The primary circuit charge for service from the utility source to the transformer shall be as follows: a. For single-phase service, per foot of primary circuit $9.45 b. For three-phase service,per foot of primary circuit $17.76 (2) The transformer installation charge shall be as follows: a. For single-phase service,per transformer $1,387.00 b. For three-phase service,per transformer $2,432.00 (3) Actual special costs to the utility of installation of service resulting from site conditions shall be included in the BSC as additional charges. Such conditions may include, but are not limited to, frozen or rocky soil, concrete cutting and asphalt replacement. (e) In lieu of the ECF and BSC based on Subsections (a), (b), and (d), the ECF and BSC for any new nonresidential service exceeding five thousand (5,000) kilowatts in size will be determined on a case-by-case basis so as to recover the direct and indirect costs associated with extending primary circuitry to the user's point of delivery. Section 5. That the modifications set forth above shall be effective for all fees paid on or after January 1, 2016. - 6 - Introduced, considered favorably on first reading, and ordered published this 3rd day of November, 2015, and to be presented for final passage on the 17th day of November, A.D. 2015. OF T-ORT c�,�` N S AL ; Mayor ATTEST: C... O� City Clerk Passed and adopted on final reading on this 17th day of November, A.D. 2015. QORj cot4 Mayor BEST: '•s 00 1 U7 rk 0 C 'O - 7 -