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Home My WebLink AboutCOUNCIL - AGENDA ITEM - 08/15/2000 - ITEMS CONCERNING PAYMENT OF ADDITIONAL WATER AND S AGENDA ITEM SUMMARY ITEM NUMBER: 20 A-B FORT COLLINS CITY COUNCIL DATE: August 15, 2000 10 STAFF: Dennis Sumner SUBJECT: Items Concerning Payment of Additional Water and Sewer Plant Investment Fees. RECOMMENDATION: y Staff recommends adoption of these Ordinances on First Reading. FINANCIAL IMPACT: These Ordinances would authorize the General Manager of Utility Services to allow a user to pay additional water and sewer Plant Investment Fees (PIFs) over time when the user underpaid such fees as a result of miscalculation of the fees. The financial impact should be minimal, as 10 miscalculation of fees is unusual. EXECUTIVE SUMMARY: A. First Reading of Ordinance No. 101, 2000, Amending Section 26-120 of the City Code Concerning Additional Payment of Water Plant Investment Fees When Initial Payment Miscalculated. B. First Reading of Ordinance No. 102, 2000, Amending Section 26-283 of the City Code Concerning Additional Payment of Sewer Plant Investment Fees When Initial Payment Miscalculated. The process used to determine water and sewer plant investment fees for large water and wastewater users depends on an engineering analysis submitted by the user. Utilities staff calculate the fees based on this submittal. While in the vast majority of situations this process is effective and results in accurate PIFs, there is the possibility that good-faith information provided by a user will prove to be incorrect. Once a facility is built,and the user begins operation,actual use characteristics may not be as originally projected. As a result, the user may owe additional PIFs. This situation currently exists. m� DATE: August 15, 2000 2 ITEM NUMBER: 20 A-B These Ordinances authorize the General Manager of Utility Services to allow the user to pay the additional PIFs over time under reasonable terms and conditions. These Ordinances also make it unlawful for any person to knowingly provide false,inaccurate or fraudulent information to be relied upon by the Utilities when calculating a user's PIF. ORDINANCE NO. 101, 2000 OF THE COUNCIL OF THE CITY OF FORT COLLINS AMENDING SECTION 26-120 OF THE CODE OF THE CITY OF FORT COLL NS CONCERNING ADDITIONAL PAYMENT OF WATER PLANT INVESTMENT FEES WHEN INITIAL PAYMENT MISCALCULATED WHEREAS, under Section 26-120 of the Code of the City of Fort Collins, any person desiring to connect to the potable water system of the City's Water Utility must pay a water plant investment fee ("WPIF'); and WHEREAS, the amount of WPIF to be paid by any particular user is established pursuant to Section 26-128 of the City Code; and WHEREAS, for most users the amount of WPIF to be paid is relatively easy to calculate, however for larger, non-residential users the calculation of the WPIF often depends upon an engineering analysis submitted by the user that is then evaluated by the Water Utility; and WHEREAS,in the vast majority of situations,this process is effective and results in a correct determination of the WPIF; and WHEREAS,occasionally the engineering information is in error and the amount of the WPIF • is miscalculated; and WHEREAS,this error is usually made in good faith,but not discovered until sometime after the user has paid the original amount calculated for the WPIF and has begun its operations; and WHEREAS,once this error is discovered,the situation sometimes exists where the user may owe an additional amount for its WPIF but may need some flexibility to structure a payoff of this unanticipated expense; and WHEREAS, this Ordinance authorizes the General Manager of the Utility Services, at his or her option, to allow the user to pay any additional amount owed for the WPIF over time under such reasonable terms and conditions as are approved by the General Manager; and WHEREAS,this Ordinance also makes it a misdemeanor violation under the City Code for any person to knowingly provide the Water Utility with any false, inaccurate or fraudulent information to be relied upon by the Water Utility in calculating a user's WPIF. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows: Section 1. That paragraph (a)of Section 26-120 of the Code of the City of Fort Collins is hereby amended to read as follows: • 1 Sec. 26-120. Water plant investment fees. (a) Any applicant desiring to connect to the water utility shall pay the utility a water plant investment fee (WPIF) pursuant to the schedule of fees prescribed by §26-128 in addition to any other connection fees prescribed herein. Except when arrangements for time pa ent are made ursuant to policyestablished by the City Council br"� . Sara ;� t ... this fee shall be paid in full at the time the water service connection permit is issued. If there is an increase in plant investment fee rates between the time of application for a water service permit and the actual payment of fees, the fee rates in effect at the time of payment shall apply. Section 2. That a new paragraph(f)be added to Section 26-120 of the Code of the City of Fort Collins to read as follows: sUCh zsona # berms aii a,lldtti0ns aTC , ei ;D c Section 3. That a new paragraph(g)be added to Section 26-120 of the Code of the City of Fort Collins to read as follows: Y& an Introduced and considered favorably on first reading and ordered published this 15th day of August, A.D. 2000, and to be presented for final passage on the 5th day of September, A.D. 2000. Mayor ATTEST: City Clerk 2 Passed and adopted on final reading this 5th day of September, A.D. 2000. Mayor ATTEST: City Clerk • 3 . ORDINANCE NO. 102, 2000 OF THE COUNCIL OF THE CITY OF FORT COLLINS AMENDING SECTION 26-283 OF THE CODE OF THE CITY OF FORT COLLINS CONCERNING ADDITIONAL PAYMENT OF SEWER PLANT INVESTMENT FEES WHEN INITIAL PAYMENT MISCALCULATED WHEREAS, under Section 26-283 of the Code of the City of Fort Collins, any person desiring to connect to the wastewater system of the City's Wastewater Utility must pay a sewer plant investment fee ("SPIF'); and WHEREAS,the amount of the SPIF to be paid by any particular user is established pursuant to Section 26-284 of the City Code; and WHEREAS, for most users the amount of SPIF to be paid is relatively easy to calculate; however for larger, non-residential users the calculation of the SPIF often depends upon an engineering analysis submitted by the user that is then evaluated by the Wastewater Utility; and WHEREAS,in the vast majority of situations,this process is effective and results in a correct determination of the SPIF; and WHEREAS,occasionally the engineering information is in error and the amount of the SPIF is miscalculated; and WHEREAS,this error is usually made in good faith,but not discovered until sometime after the user has paid the original amount calculated for the SPIF and has begun its operations; and WHEREAS,once this error is discovered,the situation sometimes exists where the user may owe an additional amount for its SPIF but may need some flexibility to structure a payoff of this unanticipated expense; and WHEREAS, this Ordinance authorizes the General Manager of the Utility Services, at his or her option,to allow the user to pay any additional amount owed for the SPIF over time under such reasonable terms and conditions as are approved by the General Manager; and WHEREAS, this Ordinance also makes it a misdemeanor violation under the City Code for any person to knowingly provide the Wastewater Utility with any false, inaccurate or fraudulent information to be relied upon by the Wastewater Utility in calculating a user's SPIF. 1 NOW,THEREFORE,BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows: Section 1. That paragraph(a)of Section 26-283 of the Code of the City of Fort Collins is hereby amended to read as follows: Sec. 26-283. Sewer plant investment fees (SPII); basis. (a) An applicant desiring to connect to the wastewater utility shall pay the utility a sewer plant investment fee (SPIF) as prescribed in §26-284 of this Article in addition to any other connection fee or charge imposed by this Article. Except where arrangement for time pa ent are pursuant to policy established by the City Council or R294 this fee shall be paid in full at the time the sewer connection permit is issued. In the case of an increase in SPIF rates between the time of application for the permit and the applicant's actual payment of sewer connection charges,the rates in effect on the date of payment shall apply. Section 2. That a new paragraph(e)be added to Section 26-283 of the Code of the City of Fort Collins to read as follows: P Section 3. That a new paragraph(f)be added to Section 26-283 of the Code of the City of Fort Collins to read as follows: o ��sb � false; orf #dulC t °,o . . , ., n to be tt+ UttT tlt ccuaftng a 1 4� 2 Introduced and considered favorably on first reading and ordered published this 15th day of . August, A.D. 2600, and to be presented for final passage on the 5th day of September, A.D. 2000. Mayor ATTEST: City Clerk Passed and adopted on final reading this 5th day of September, A.D. 2000. Mayor ATTEST: City Clerk 3