HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 06/15/2010 - SECOND READING OF ORDINANCE NO. 067, 2010, AMENDIN DATE: June 15, 2010
STAFF: Bill Freeman
Patty Bigner
Second Reading of Ordinance No. 067,2010,Amending Section 26-279 of the City Code to Allow Additional Means
of Determining Wastewater Volume as the Basis for Wastewater Service Fees and Charges.
EXECUTIVE SUMMARY
This Ordinance, unanimously adopted on First Reading on June 1, 2010, allows Utilities to establish an alternate
means for determining wastewater volume for typical applications used in manufacturing processes by some of the
City's industrial and large commercial customers. Examples include cooling towers and other equipment or processes
where a measurable reduction in wastewater discharge can be determined and metered. The reduction would
generally be established for a specific process rather than facility as a whole.
STAFF RECOMMENDATION
Staff recommends adoption of the Ordinance on Second Reading.
ATTACHMENTS
1. Copy of First Reading Agenda Item Summary-June 1, 2010
(w/o attachments)
r
ATTACHMENT
DATE: June 1, 2010 .
STAFF: Bill Freeman _
Patty Bigner
First Reading of Ordinance No. 067, 2010, Amending Section 26-279 of the City Code to Allow Additional Means of
Determining Wastewater Volume as the Basis for Wastewater Service Fees and Charges.
EXECUTIVE SUMMARY V'\. /7
This proposed Code amendment allows Utilities to establish an_alternate means for determining wastewater volume
for typical applications used in mariufacturing'processes by some of ttie City's industrial and large commercial
customers. Examples include cooling towers and other equipment or processes where a measurable reduction in
wastewater discharge can be determined and metered. The reduction would generally be established for a specific
process rather than facility as a whole.
BACKGROUND / DISCUSSION
Fort Collins Municipal Code, Chapter26 establishes specific rates for customer classifications,including intermediate
non-residential users and users who have been issued industrial discharge permits. Rates are based upon water use,
measured wastewater flows, or wint6i-2quarter: u e�whic"he eer*Nis�applica6le. From a technical perspective,
measurement of wastewater flow hasfproved to be difficult to system deesiign and reliability of wastewater metering.
These changes to Chapter 26 of the�Ci�ty Code�S\ablis�an I ddi' tional means of determining wastewater volume as
the basis for Wastewater Service fees. Because water use-is the standard basis for determining the charges, the
alternative approach would result in an adjustment for the difference in watervolume received and wastewater volume
discharged. This would apply to commercial customers who have facility or manufacturing processes that result in
a significant difference between the volume ofwaterdelivered and the volume of wastewater discharged,and excludes
water used for landscape irrigation. This Code change provides general guidelines forthis specific type of adjustment.
The Wastewater Utility would establish a program with specific requirements including qualified processes, meter
installation, maintenance and calibration, cross connection control, and any necessary plumbing specifications.
Chapter 26, Sections 278-280 of City Code describe the basis and establish charges for wastewater service charges
and categories as well as service charges-by categories.
In addition, Code section 26-279 (2) specifies P
T7 �e
"If any metered water service customer co�ne�ts to the wastewater utility or makes a change in the
use of the premises or substantially expands such premises, the General Manager shall make an
estimate of the water consumption on such premises during an average winter month based upon
a count of plumbing fixtures, consumption of similar customers or other information relevant to such
determination; and such estimate, when made, shall be the basis for the wastewater service charge
until the actual winter use for the premises can be determined."
This section provides the means for changing a wastewater service charge based on winter water use but does not
include provision for consumptive or evaporative loss. The amendment would add the following language to this
section:
�--� �--� f
...the premises can be deterMined'or until an alternative meansofdetermining wastewater volume
'is established for the user inac ce wiAiti�/
June 1, 2010 -2- ITEM 13
The following underlined language is proposed to be added to City Code to describe the manner in which metered use
could be established as the basis for wastewater charges:
(4) In addition to the applicable base charge set forth in § 26-280, users in Categories D, E and F
shall be billed upon the basis of metered water consumption except where they can show to the
satisfaction of the General Manager that not all of the water going through the water meter is returned
to the wastewater system but is instead consumed or otherwise diverted. In such cases,and with the
approval of the General Manager, the wastewater charges may be based upon one (1) of the
following methods: (a)a metering device of a type and installed in a manner approved by the General
Manager may be used to measure the quantity of wastewater returned to the public sewer and the
actual volume of wastewater discharged will be substituted in the formula for billing purposes; LL
meterinq device of a type and installed in a•manner approved by the General Manager may be used
to measure one or more specific quantities df,water consumed o�iprocessed in all or specified
portions of the user's facilitylif.the General Manager'finds•that such:measured water quantities form
a sufficient and reliable basis,for dete'rmining the,i ban'tity of waste water returned to the public sewer,
in which event the actual volume•of-wastewater'-disch reed will be substituted in the formula for billing
purposes,:or(c)when the user discharges only wastes reasonably and regularly corresponding to the
winter quarter water use, said winter quarter water use may be substituted in the formula for billing
purposes.Any metering device used to measure wastewater shall be installed and maintained at the
user's expense.
Sec 26-290 describes the manner in which special wastewater service agreement can be established, and specifies
that this type of agreement is subject to adoption by City Council.
Sec. 26-290. Agreements for special wastewater services. Special services or complex service
arrangements that are beyond;thoserequiredl orr basic=wastewater,service may be arranged by a
written services agreement which the General Manager may negotiate and enter into on behalf of the
wastewater utility. Said agreement shall estabish the-terms and conditions for any such special
services or arrangements and.shalI/i`ncocporate'6Y reference thel requirements of this Chapter, as
applicable. Any special services agreement-modifying the rates, fees or charges for said services
from those set forth in this Article shall be subject to approval by the City Council in accordance with
§6 of Article XII of the Charter.
It is the expectation that Utilities would use this authority for special wastewater service agreements in order to
establish and document the requirements and arrangements for particular customers under the proposed new
metering authority.
A customer requesting alternative metering arrangements to reflect the difference in water volume received and
wastewater volume discharged will be required to meet the following conditions:
• The reduction must be for arsE�ific process. It is not for the industry as a whole.
• The reduction must be measurable. Oalddition to the-main water meter serving the property, meters must
be installed at the influent side�a�d effluent side�of the specific process to be measured.
• The additional meters must be purchased from Fort Collins Utilities.
• The installation and maintenance of the additional meters will be the responsibility of the customer.
• Meter installation must be inspected and approved by Fort Collins Utilities and is subject to additional
inspections at least annually.
• All meter installations must be readily accessible.
• Any meter found to exceed specifications of age or total volume, or found to be out of calibration, shall be
replaced at the expense of the customer.
FINANCIAL IMPACT �i-\� � �1 7
I ( II 1 I N /
Staff anticipates that this City Code amendment will result in a significant reduction to Wastewater Fund revenue over
the next several years. Staff will estimate-the effects•of�this,,ehange in the-Budgeting For Outcomes (BFO) process
and make recommendations on any required rate changes as a part of the budget and rate-setting work later this year.
June 1, 2010 -3- ITEM 13
SUSTAINABILITY: ECONOMIC, ENVIRONMENTAL AND SOCIAL IMPACTS
This proposed Code amendment does not create an additional environmental impact in that it does not change the
way water resources are used or impact the quality of wastewater discharge. It does provide a means for quantifying
wastewater discharge in a specific commercial use as the basis for equitably allocating wastewater collection and
treatment costs to those commercial customers that meet the requirements of the program. It allows the Utilities to
adjusts the basis for determining charges by metering discharge flows rather than determining wastewater charges
based on water volume delivered. The result is reduced cost to the commercial customer that more closely matches
with the amount of wastewater service delivered. This has an economic benefit to the customer; however, it results
in a short term reduction in revenue to the Wastewater fund until cost of service allocations can be adjusted. It is
anticipated that the change in cost allocation will increase residential rates to some extent as the result of the shift in
cost allocation. This shift and its assodiated�economic impact can be managed by phasing the program. Since this
change is a result of customer feedback on how;wastewater service chargeslre determined,this amendment to City
Code may support the ability of customers tojiinflu'e`ce factors that directly Impact their business. It may also support
the positive business relationship between-'thesee customers-Fort Collins Utilities and City government.
STAFF RECOMMENDATION
Staff recommends adoption of the Ordinance on First Reading.
BOARD / COMMISSION RECOMMENDATION T_\ /7
At its May 13. 2010 meeting, the Water Board voted unanimously�to,recommend Council approve the propose Code
revision to allow for an additional means��eterminew`stewater volumej
ATTACHMENTS
1. Draft minutes from the May 13, 2010 Water Board meeting
COP
COP
ORDINANCE NO. 067, 2010
OF THE COUNCIL OF THE CITY OF FORT COLLINS
AMENDING SECTION 26-279 OF THE CODE OF THE CITY OF FORT COLLINS
TO ALLOW ADDITIONAL MEANS OF DETERMINING WASTEWATER VOLUME
AS THE BASIS FOR WASTEWATER SERVICE FEES AND CHARGES
WHEREAS,rates,fees and charges for wastewater utility service are determined as set forth
in Division 4 of Article IV in Chapter 26 of the City Code; and
WHEREAS,the methods for measuring and determining wastewater volume for the purpose
of billing wastewater customers the applicable rates, fees and charges for wastewater service; and
WHEREAS, in some circumstances the volume of wastewater discharged by wastewater
customers with complex or unusual processes or plant configurations can be more accurately
determined using more refined methods than are currently provided in City Code; and
WHEREAS, City staff has proposed that Section 26-279 of the City Code be amended so
as to allow Utilities to develop and approve on a case-by-case basis methods for measuring one or
more specific quantities of water consumed or processed by nonresidential wastewater customers,
o
in order to determine more accurately the volume of wastewater discharged by such customers; and
WHEREAS,the City Council has determined that it is appropriate and desirable for Utilities
to have the authority to evaluate and establish such methods of measuring or determining wastewater
discharges by nonresidential wastewater customers.
NOW THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT
COLLINS that Section 26-279(c) of the Code of the City of Fort Collins is hereby amended to read
as follows:
(c) The rate determination by category is as follows:
(2)
The user shall be charged this calculated amount and the applicable
base charge as set forth in § 26-280. If any metered water service
customer connects to the wastewater utility or makes a change in the
use of the premises or substantially expands such premises, the
General Manager shall make an estimate of the water consumption
on such premises during an average winter month based upon a count
of plumbing fixtures, consumption of similar customers or other
information relevant to such determination; and such estimate, when
made, shall be the basis for the wastewater service charge until the
actual winter use for the premises can be determined or until an
alternative means of determining wastewater volume is established
for the user in accordance with this Article.
(4) In addition to the applicable base charge set forth in § 26-280, users in
Categories D, E and F shall be billed upon the basis of metered water
consumption except where they can show to the satisfaction of the General
Manager that not all of the water going through the water meter is returned
to the wastewater system but is instead consumed or otherwise diverted. In
such cases, and with the approval of the General Manager, the wastewater
charges may be based upon one (1) of the following methods: (a) a metering
device of a type and installed in a manner approved by the General Manager
may be used to measure the quantity of wastewater returned to the public
sewer, in which event the actual volume of wastewater discharged will be
substituted in the formula for billing purposes; (b) a metering device of a
type and installed in a manner approved by the General Manager may be
used to measure one or more specific quantities of water consumed or
processed in all or specified portions of the user's facility if the General
Manager finds that such measured water quantities form a sufficient and
reliable basis for determining the quantity of wastewater returned to the
public sewer,in which event the actual volume of wastewater discharged will
be substituted in the formula for billing purposes; or (c) when the user
discharges only wastes reasonably and regularly corresponding to the winter
quarter water use, said winter quarter water use may be substituted in the
formula for billing purposes. Any metering device used to measure
wastewater shall be installed and maintained at the user's expense.
Introduced,considered favorably on first reading,and ordered published this 1 st day of June,
A.D. 2010, and to be presented for final passage on the 15th day e, A.D. 2010.
Mayor
ATTEST:
I
City Clerk
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Passed and adopted on final reading on the 15th day of June A.D. 2010.
Mayor
ATTEST:
City Clerk
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