HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 03/15/2005 - SECOND READING OF ORDINANCE NO. 026, 2005, AMENDIN ITEM NUMBER: 7
AGENDA ITEM SUMMARY DATE: March 15, 2005
FORT COLLINS CITY COUNCIL STAFF: Roger Buffington
Timothy Wilder
SUBJECT
Second Reading of Ordinance No. 026, 2005, Amending Chapter 7.5 and Chapter 26 of the City
Code to Establish Requirements and Procedures for Utility Service Outside the Fort Collins
Growth Management Area.
RECOMMENDATION
Staff recommends adoption of the Ordinance on Second Reading.
EXECUTIVE SUMMARY
Chapter 26 of City Code outlines a process in which water or wastewater service can be provided
outside city limits if certain conditions are met. City Plan Policy GM-5.1 discourages extension
of utilities outside the City's Growth Management Area ("GMA") unless the extension is
consistent with City Plan and has a community benefit. Ordinance No. 026, 2005, which was
unanimously adopted on First Reading on March 1, 2005, will clarify this ambiguity and require
that the areas to be served outside the GMA must be approved by City Council.
ORDINANCE NO. 026, 2005
OF THE COUNCIL OF THE CITY OF FORT COLLINS
AMENDING CHAPTER 7.5 AND CHAPTER 26 OF THE
CODE OF THE CITY OF FORT COLLINS TO ESTABLISH
REQUIREMENTS AND PROCEDURES FOR UTILITY SERVICE
OUTSIDE THE FORT COLLINS GROWTH MANAGEMENT AREA
WHEREAS, Article X of Chapter 26 of the City Code sets out conditions and procedures
for the extension of City utility services to persons outside of the city limits of Fort Collins, which
procedures generally include review by the Planning and Zoning Board and Water Board,and a final
decision by the General Manager of Utilities; and
WHEREAS, applicable City Plan policies discourage the extension of City utility services
in a manner that may encourage sprawling development on the edges of the City's Growth
Management Area("GMA"),except when special benefits will accrue to the City for providing such
services; and
WHEREAS,City staff and the Council have recently reviewed the issue of whether the City
should choose to provide wastewater service to properties outside of the Fort Collins Growth
Management Area ("GMA"), specifically in the unincorporated area of Latimer County generally
referred to as "Laporte", together with the more general issue of how decisions regarding utility
service outside of the GMA should be made; and
WHEREAS, City staff presented background information and various alternatives related
to these concerns to the City Council at its December 14, 2004, Study Session; and
WHEREAS, based on that discussion, staff has prepared this Ordinance, which amends
Chapter 26, Article X, regarding Utility Service Outside City Limits, so as to distinguish between
such service within the City's GMA and without, and requiring Council approval for the extension
of new utility service outside of the GMA,either individually or based upon a general service plan;
and
WHEREAS, City staff has further reviewed the existing out-of-city service requirements,
and is suggesting certain revisions to update and clarify those requirements as they apply to both
service within the GMA and outside of the GMA; and
WHEREAS, City staff has evaluated the impacts upon the services provided by the City of
development outside of the GMA, and has determined that those impacts can be reasonably
predicted and estimated based upon data currently available; and
WHEREAS, the City has determined that based upon such estimated impacts, a special
service fee should be established and collected as a surcharge together with utilities-related fees and
charges, at the time of permit issuance for out-of-GMA utility service; and
WHEREAS,this Ordinance amends Chapter 7.5 to allow the City Manager to collect from
new out-of-GMA utility customers a special service fee based upon said estimated demand on City
services associated with the development to which utility service will be provided; and
WHEREAS,in addition,staff also presented for Council consideration on February 15,2005,
Resolution 2005-018, authorizing and directing staff to proceed with negotiations in an effort to
facilitate the formation of a special district to provide wastewater collection and customer service,
to which the City would agree to provide wastewater treatment services; and
WHEREAS, Resolution 2005-018, further authorized the City Manager to negotiate and
arrange for wastewater utility service in that portion of the Laporte area described and designated
in that Resolution as the "Approved Service Area," to the extent formation of a special district for
such service is not feasible and further provided that such arrangements accommodate the formation
of a special district for service that would obtain its treatment services from the City.
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT
COLLINS as follows:
Section 1. That Section 26-49 of the Code of the City of Fort Collins is hereby amended
as follows:
Sec. 26-49. Service outside city limits.
Persons outside the city limits may apply for connection to the water utility
for use of surplus city water in accordance with the procedures and requirements in
Article X of this Chapter and subject to the limitations set forth therein.
Section 2. That Section 26-218 of the Code of the City of Fort Collins is hereby
amended as follows:
Sec. 26-218. Service outside city limits.
Persons outside the city limits may apply for connection to the wastewater
utility for use of excess capacity of the treatment system in accordance with the
procedures and requirements in Article X of this Chapter and subject to the
limitations set forth therein.
Section 3. That the title of Section 26-651,and Section 26-651(a)of the Code of the City
of Fort Collins are hereby amended as follows:
Sec. 26-651. Conditions for furnishing service within Growth Management
Area.
(a) Any person outside of the city limits and within the Growth Management
Area desiring to make a connection to one (1) or both of the city's water and
wastewater utilities shall apply to the city for permission, and shall submit in
connection with any application such information as the General Manager may
determine to be appropriate to allow him or her to review such application, and as
necessary to plan and arrange for the requested service connection. A connection
permit may be issued subject to compliance with § 26-253 after review and
recommendation of the Planning and Zoning Board and the Water Board and the
approval of the General Manager of Utility Services,based upon the considerations
and requirements set forth in § 26-651(b). The General Manager may, in his or her
discretion,elect to approve,without the review and recommendation of the Planning
and Zoning Board and Water Board, the application of persons desiring to make a
single connection to one(1)or both of the city's water and wastewater utilities. If the
General Manager determines that the application should not be approved without the
review and recommendation of the aforementioned boards, the General Manager
shall forthwith seek such review and recommendation prior to making his or her
decision.No grant of approval hereunder shall give rise to any vested right to utility
service and said service shall be contingent upon the issuance of a permit hereunder
prior to the expiration of any approval by the General Manager hereunder.
Section 4. That Section 26-651(b) of the Code of the City of Fort Collins is hereby
amended as follows:
(b) New utility service may be furnished to property which is outside of the
city limits and within the Growth Management Area if the General Manager
determines that the provision of such service is consistent with the relevant utility
master plan documents, and is in the best interests of the city,the city's utilities, and
the relevant utility, and if the following conditions are met:
(1) The utility concerned has surplus capacity over the immediate
requirements for service within the city and the applicant has satisfied
any raw water requirement assessed against property to be served with
city water;
(2) The property use to be served by the utility is a legal use under the
applicable zoning and subdivision requirements, whether expressly
permitted or a legal nonconforming use; and
(3) The property use to be served is consistent with any intergovernmental
agreement between the city and Larimer County regarding the
regulation of land use and zoning in the Growth Management Area in
effect at the time of approval of utility service.
Section 5. That a new Section 26-652 is hereby added to the Code of the City of Fort
Collins, as follows, and the existing Section 26-652 is hereby renumbered accordingly:
Sec. 26-652. Conditions for furnishing service outside Growth Management
Area.
Any person outside of the Growth Management Area desiring to make a
connection to one (1) or both of the city's water and wastewater utilities shall apply
to the city for permission, and shall submit in connection with any application such
information as the General Manager may determine to be appropriate to allow him
or her to review such application or to advise the City Council in its review of such
application, and as necessary to plan and arrange for the requested service
connection. A connection permit maybe issued subject to compliance with§26-253
and any other requirements imposed as a condition of approval for service hereunder,
upon either:
(1) review and approval by the City Council by resolution of an application
for service; or
(2) review and approval by the General Manager of an application for
service of the type and in an area consistent with a service plan for the
provision of particular utility services within a defined area that has
been approved by the City Council by resolution.
No grant of approval hereunder shall give rise to any vested right to utility
service and said service shall be contingent upon the issuance of a permit hereunder
prior to the expiration of any such approval.
Section 6. That newly renumbered Section 26-653 (previously Section 26-652) is hereby
amended to read as follows:
Sec. 26-653. Permit is revocable; agreement of user.
(a) So long as a property served is outside the city, any permit for utility
services issued under this Article is revocable and the utility concerned will supply
service only to the extent that it has surplus capacity over the requirements for
service within the city and only so long as the permittee is in compliance with and
abides by the conditions of the permit, including but not limited to all requirements
of the Code applicable to utility services. The use of city water under this Article
does not constitute a relinquishment of any water or water rights by the city. The city
reserves and retains full dominion and control over its water and water rights and
their use. Upon revocation of a water service permit for water use outside the city
and the permanent disconnection of water service,the city shall remit such raw water
as has been previously surrendered to the city by the outside-city user.
(b) If a permit to connect to any of the city's utilities is approved under this
Article, the applicant shall:
(1) Provide a current title memorandum showing that title to the property
is vested in the applicant's name at the time of issuance of a permit;
(2) With respect to property that, at the time of issuance of a permit, is
within the Growth Management Area and not eligible for annexation
into the city, the owner of the property shall enter into a written
• agreement to be recorded and to constitute a covenant running with the
land that the owner or any successors in interest will join in a petition
for annexation to the city when requested by the city,will pay any filing
fee related thereto, and will cooperate in related proceedings;
(3) With respect to property that, at the time of application for utility
service, is within the Growth Management Area and eligible for
annexation into the city, the owner of the property shall execute a
petition for annexation which does not contain a right of withdrawal,
together with all related documents, and shall pay any filing fee related
thereto;
(4) Comply with all of the construction, installation and connection
requirements prescribed by the applicable articles governing the utility
to which connection is made the same as any inside-city applicant;
(5) Bear the costs of construction,installation and connection of utility lines
except for such oversizing participation or reimbursement as may be
authorized in accordance with this Chapter;
(6) Pay any surcharges upon such utility service imposed by the City
Manager pursuant to his or her authority in § 7.5-3.
(7) Comply with any and all of the requirements, limitations and
prohibitions conditioning service, as prescribed by the applicable
articles governing the utility to which connection is made the same as
any inside-city user;
(8) Use the utility service only for the qualifying use and make no
extension, enlargement or alteration of the service or the use for which
the connection was made without first obtaining the written permission
of the General Manager;
(9) Pay for any and all utility service in accordance with the rates applicable
to said service as established by the City Council from time to time;
(10) Execute and record in the real property records of Larimer County, in a
form satisfactory to the General Manager,an instrument acknowledging
and agreeing that the utility service provided to the served property is
subject to the obligations set forth herein, and that said real property is
subject to the applicable provisions of the permit and this Chapter;
(11) Make no assignment of the utility service permit or agreement to any
other property without first obtaining the written permission of the
General Manager;
(12) For any water service, file a petition to join the Northern Colorado
Water Conservancy District,Municipal Subdistrict,if the property is not
already included therein, and pay the required fees.
(c) If a permittee under this Article does not connect to the permitted utility
within six (6) months of issuance of the connection permits, the permit will expire.
(d) The city may suspend utility service to the property served if the user
fails to comply with any of the conditions of the utility service permit until the
violation is rectified.Nothing in this Article shall be construed as waiving any other
remedy available to the city pursuant to the Code or other law.
Section 7. That a new Section 7.5-3 is hereby added to the Code of the City of Fort Collins
to read as follows:
Sec. 7.5-3. Establishment of special surcharges.
The City Manager may,from time to time,establish an administrative surcharge
to be imposed at the time of issuance of a connection permit for utility services from
the city outside of the Growth Management Area pursuant to Article X of Chapter
26,to be determined based upon projected demand for city streets,community parks
and libraries to result from the development that is to receive utility services,which
surcharge may be adjusted to reflect benefits to accrue to the city as a result of said
development. The City Manager shall include in his or her recommended budget an
itemization of the fees currently being charged for such services and facilities,
together with an estimate of the amount of annual revenue anticipated to be
generated by such fees during the budget term.
Section 8. Individual service connection permits for utility service that have been approved,
whether individually or on a subdivision or project basis,by the General Manager as of the effective
date of this Ordinance shall be deemed subject to Article X of Chapter 26 as it existed at the time
of said approval by the General Manager.
Introduced and considered favorably on first reading and ordered published in summary form
this 1 st day of March, A.D. 2005, and to be presented for final passage on the 15th day of March,
A.D. 2005.
Mayor
ATTEST:
City Clerk
Passed and adopted on final reading this 15th day of March, A.D. 2005.
Mayor
ATTEST:
City Clerk
ITEM NUMBER: 24 A-B
AGENDA ITEM SUMMARY DATE: March 1, 2005
FORT COLLINS CITY COUNCIL STAFF: Roger Buffington
Timothy Wilder
SUBJECT
Items Relating to Out of City Utility Service.
RECOMMENDATION
Staff recommends adoption of the Resolution and Ordinance on First Reading. The Planning and
Zoning Board and the Water Board both voted to recommend to City Council that the City
provide wastewater treatment service to a defined area in the vicinity of Laporte.
EXECUTIVE SUMMARY
A. Resolution 2005-018 arding(0 )0te Area.
B. First Reading of Ordin eN pter 7.5 and Chapter 26 of the
City Code to Establish Requirements and Procedures for Utility Service Outside the Fort
Collins Growth Management Area.
At the December 14, 2004, City Council Study Session, Council discussed the extension of City
wastewater service near Laporte. Council agreed with the staff recommendation for Option 4:
City provides wastewater treatment through a new wastewater district. Resolution 2005-018
establishes policy for this service and directs staff to cooperate with various entities that are
pursuing formation of a special district in the Laporte area. The agreement between the City and
the special district will be presented to Council for final approval. The Resolution also provides
direction regarding the resolution of outstanding issues related to an outdated wastewater service
agreement with Laporte Water and Sanitation District.
Chapter 26 of City Code outlines a process in which water or wastewater service can be provided
outside city limits if certain co it' any= oli GM-5.1 discourages extension
of utilities outside the City' Grow and nt e MA") unless the extension is
consistent with City Plan and as a co muni b efit. Or .nance No. 026, 2005 will clarify
this ambiguity and require that .areas t e utsido- e GMA must be approved by City
Council.
March 1, 2005 -2- Item No. 24 A-B
BACKGROUND
The City of Fort Collins has prov' utili ervi e, o p of Laporte area for many years.
Water service to the area bega n the 1 Os a w to t e ice in the early 1970s. The City
owns the water system in Cate and eraten a intai the wastewater collection system
under an agreement with the L grte S 'tation Di ict.
In January 2004, Larimer County adopted the Laporte Area Plan. The Laporte area is an
unincorporated area outside city limits and outside the GMA (see attached context map).
Portions of the Laporte Area Plan include approximately 2000 dwelling units shown to develop
at urban level densities (i.e. 2-4 and 4-6 units per acre). These densities will necessitate service
from a public sewer system.
The City has since received two formal requests for utility service in this area and several
informal inquiries about wastewater service. In the past, requests for utility service have been
processed in accordance with City Code Article X which generally says that if certain conditions
are met, service will be provided. In contrast, City Plan discourages extension of utilities outside
the GMA unless there is a community benefit. Staff is seeking clarification and policy direction
regarding extension of sewer service in the Laporte area.
In the Laporte Water/Sewer ervi4e oli p ed by City staff, options for
wastewater collection and trea ent for e are n din Laporte Area Plan include:
• septic systems (rural-type low densities only)
• community/subdivision sewer systems
• new sanitation district(s)
• Boxelder Sanitation District
• City service
Staff believes it is important for the City to provide wastewater service to reduce the potential of
new wastewater treatment facilities upstream from Fort Collins and to protect water quality in
the Poudre River. The Policy Report identified the following policy options for providing that
service.
Option 1: Maintain existing process for out-of-city service requests by reviewing requests
on a case-by-case basis.
Option 2: Continue servi only e e PsAar (Laporte Water and Sanitation
District) but no How a nsio rea outside the GMA.
Option 3: Provide future service directly to new development within a limited area as
defined by the Laporte Area Plan.
Option 4: Provide treatment only through a new district in a limited area as defined by the
Laporte Area Plan.
Pros and cons of these options were reviewed at the December 14, 2004, Council study session.
March 1, 2005 -3- Item No. 24 A-B
During the review of the Laporte Area Plan and the study of the City's policy options, City staff
also assessed impacts of Laporte area development on several other City services including
transportation, parks and library. The reason that these services were studied and not others was
that much of the funding for theseryic -is Novdf thro gh velopment impact fees and not
sales taxes. In addition, other 'trvicesoenotie
y im c fees that are in place and will be
collected from new developm is in t . It is important to note that these impacts
on City services are likely to o c City provides wastewater service. These
impacts were estimated to be:
• Transportation: Potential 4 to 6% increase on major streets in area ($400-600/unit)
• Library: Currently 30% usage by Laporte residents ($260-606/unit)
• Parks: Potential 2 to 3% increase in usage ($435-669/unit)
Staffs recommendation is that the City provide wastewater treatment through a new district
(Option 4 above) with the following conditions:
• The property to be served by the City's wastewater treatment services must be within
the defined area shown on Exhibit A.
• The development sery must onsi n i th a
Larimer County. rte Area Plan as adopted by
l
• The development must be consistent with Chapter 26 of City Code — Utility Service
Outside City Limits.
• The wastewater treatment service agreement must provide for collection on non-
utility fees as discussed above.
In the event that efforts to form a special district are not successful, staff has recommended that
the City pursue Option 3: Provide future service directly to new development within a limited
area as defined by the Laporte Area Plan.
This item has been presented to the Planning and Zoning Board and the Water Board. At the
Planning and Zoning Board meeting on November 18, 2004, the Board voted (5-1) to support the
staff recommendation, and the Water Board voted unanimously to support the staff
recommendation at its meetin , ecember 2,;y.204. nfo ation regarding those Board
meetings is attached.
,sj
The major emphasis of the Stu kcor�iple oath aporte has been wastewater; however,
as noted at the study session, the City currently supplies water to portions of Laporte within the
Laporte Water and Sanitation District. Under prior agreements with the District, the City will
continue water service to this area and infill development that may occur. Most of the proposed
development within the Laporte Area Plan will obtain water from the West Fort Collins Water
District.
March 1, 2005 -4- Item No. 24 A-B
Since the Council study session on December 14th, property owners east of Laporte have
continued to research and move forward with the formation of a special district. Developers of
The Grove subdivision have recently hired an engineer and an attorney to prepare the documents
needed to proceed with tht
n is 'et. e property owners currently
involved in the discussionsni for tr' in dharles Meserlian, Chris Kaul,
John Stegner, John Donaldsar enri E omer d LaFarge. Since it is the City's
desire to provide wastewaten't re void water discharges upstream from
Fort Collins, it is to the City's advantage to cooperate with these parties by providing
information that will be needed for the preparation of these documents. Other than this
cooperation , the City will incur no expense in the process to form the district. The proposed
district boundary is consistent with the higher density areas shown in the Laporte Area Plan
approved by Larimer County.
Resolution 2005-018 establishes policy for this service and provides direction for the City
Manager to work with various entities that are pursuing formation of a special district in the
Laporte area. Any agreements negotiated with special district(s) will be present to Council for
final approval.
In addition, City staff has continued its efforts to resolve outstanding issues related to a 1970
agreement between the City and Laporte Water and Sanitation District for wastewater service in
that area. The Resolution autho ' it ger o g• 'ate with the Laporte Water and
Sanitation District on a new a emen the so ti o e istrict.
As noted above, City Code and italan m at inconsistent in regard to the extension of
utilities outside the GMA. Ordinance No.026, 2005 amends Chapter 26 of City Code to
differentiate between the requirements for outside-City and outside-GMA utility service requests
and will require that the areas to be served outside the GMA be approved by City Council. In
addition, the ordinance amends Chapter 7.5 of City Code to allow the City Manager to establish
and collect special surcharges as a condition of obtaining utility service outside the GMA.
ATTACHMENTS
1. Laporte Area Sewer Extension Policy Context Map
2. Excerpt from Planning and Zoning Board meeting minutes,November 18, 2004
3. Memorandum to City Council from Tom Sanders, Chair of the Water Board, dated
December 6, 2004
4. Memorandum to City Court ' from erpngtVnimothy Wilder Summarizing
December 14 Council Stu Sesso on t erService Extension Policy,
dated December 15, 2004