HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 03/04/2014 - SECOND READING OF ORDINANCE NO. 028, 2014, AMENDINAgenda Item 16
Item # 16 Page 1
AGENDA ITEM SUMMARY March 4, 2014
City Council
STAFF
Jon Haukaas, Water Engr Field Operations Mgr
SUBJECT
Second Reading of Ordinance No. 028, 2014, Amending Chapter 26 of the City Code to Clarify the Application
of Wastewater Rates to Certain Residential Services.
EXECUTIVE SUMMARY
This Ordinance, adopted on First Reading on February 18, 2014 by a vote of 6-0 (Campana recused),
revises the City Code concerning the classification of wastewater users and revises rates for
wastewater service charges during the period of construction.
STAFF RECOMMENDATION
Staff recommends adoption of the Ordinance on Second Reading.
ATTACHMENTS
1. First Reading Agenda Item Summary, February 18, 2014 (PDF)
2. Ordinance No. 028, 2014 (PDF)
Agenda Item 8
Item # 8 Page 1
AGENDA ITEM SUMMARY February 18, 2014
City Council
STAFF
Jon Haukaas, Water Engr Field Operations Mgr
SUBJECT
First Reading of Ordinance No. 028, 2014, Amending Chapter 26 of the City Code to Clarify the Application of
Wastewater Rates to Certain Residential Services.
EXECUTIVE SUMMARY
The purpose of this item is to revise the City Code concerning the classification of wastewater users
and to revise rates for wastewater service charges during the period of construction.
STAFF RECOMMENDATION
Staff recommends adoption of the Ordinance on First Reading.
BACKGROUND / DISCUSSION
The City Code currently states that wastewater service charges are not applicable during the initial
construction period. This provision dates from an earlier practice when water meters were not set
until just before the Certificate of Occupancy (CO) was issued and all water service during the
construction period was billed as a fixed amount on the building permit, regardless of the length of
construction. Ordinance No. 138, 2011 eliminated unmetered construction water rates for all services
greater than 1-inch and initiated a monthly water charge for ¾-inch and 1-inch water services.
Construction sites requiring the larger meters do not receive water service until the meter is set, at
which time it is also appropriate to start billing for wastewater service. However, many of the larger
services are needed for multifamily construction and the characteristics of the wastewater during the
construction period are more like commercial than multifamily until the CO is issued. The multi-family
wastewater rate, which includes a fixed charge for each dwelling unit, would not appropriate during
construction. The Ordinance is intended to resolve these inconsistencies.
The proposed Code changes are as follows:
Delete the Code provision that states wastewater service charges are not applicable during
construction.
Insert a provision that monthly wastewater service rates will commence when the water meter
is installed.
Clarify that wastewater services billed on the flat wastewater rate for single family and duplex
customers with a well or cistern in lieu of metered water service will commence when the
certificate of occupancy is issued.
State that Wastewater user Category D: Minor Residential User applies to multifamily buildings
during the construction period prior to the issuance of the certificate of occupancy.
ATTACHMENT 1
Agenda Item 8
Item # 8 Page 2
FINANCIAL / ECONOMIC IMPACT
Wastewater charges will be charged earlier in during the construction process to more accurately
reflect the level of service provided. The proposed changes do not significantly impact Wastewater
revenues.
ENVIRONMENTAL IMPACTS
This change should not have environmental impacts.
BOARD / COMMISSION RECOMMENDATION
Staff discussed this issue with the Water Board Chair. It was agreed that this is an operational issue
that does not rise to the Policy level for the Water Board to review.
PUBLIC OUTREACH
All charges are explained to the owners and contractors when permits are issued.
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ORDINANCE NO. 028, 2014
OF THE COUNCIL OF THE CITY OF FORT COLLINS
AMENDING CHAPTER 26 OF THE CODE OF THE CITY OF FORT COLLINS
TO CLARIFY THE APPLICATION OF WASTEWATER RATES
TO CERTAIN RESIDENTIAL SERVICES
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 wastewater utility, as set forth therein; and
WHEREAS, City Code Section 26-277 requires that the City Manager analyze the
operating and financial records of the wastewater utility during each calendar year and
recommend to the City Council the user rate fees or adjustments to be in effect for the following
year; and
WHEREAS, City Code Section 26-277 further requires that the user rates be revised as
necessary to assure equity of the rate system established and to assure that sufficient funds are
obtained to adequately operate and maintain the wastewater system; and
WHEREAS, the City Code does not currently specify the wastewater rates applicable to
multi-family residential units during the time they are under construction; and
WHEREAS, the City Manager has recommended that the City Council amend Chapter
26 of the City Code to specify that the rates applicable to minor nonresidential users apply to
multi-family units until a certificate of occupancy has been issued for the units; and
WHEREAS, the City Council has determined that it desires to enact the recommended
rate as specified.
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF
FORT COLLINS as follows:
Section 1. That Section 26-278(4) of the Code of the City of Fort Collins is hereby
amended to read as follows:
Sec. 26-278. Classification of users.
. . .
(4) Category D: Minor nonresidential user. A minor nonresidential user is a user who
discharges only wastes of a type and strength normally discharged by private residences.
Category D shall also apply to multi-family residential units under construction during the period
of service from the installation of the water meter to the date the certificate of occupancy is
issued. All nonresidential users not subject to the provisions of Categories C, E and F shall be
classed as minor nonresidential users in Category D.
- 2 -
. . .
Section 2. That Section 26-279(b) of the Code of the City of Fort Collins is hereby
amended to read as follows:
Sec. 26-279. Service charges; categories.
. . .
(b) For wastewater services with metered water service, monthly service charges shall
commence at the time the water meter is installed and continue until the water service is
disconnected. For single family and duplex flat wastewater services, monthly service charges
shall commence at the time the certificate of occupancy is issued for the building or structure and
continue until the sewer service is disconnected from the City’s system.
. . .
Section 3. That Section 26-280 of the Code of the City of Fort Collins is hereby
amended to read as follows:
Sec. 26-280. Service charges established by category.
The schedule of rates for each category described in § 26-279 shall be as follows:
Category Class of
Customer
Rate
A Single-family
residential user
(flat rate)
$33.74 per month
Single-family
residential user
(metered water
use)
$15.07 per month plus $2.929 per 1,000
gallons of either winter quarter water use or
3,000 gallons, whichever is greater. For
single- family customers who have not
established a winter quarter water use at the
service address, a system average of 4,800
gallons per month shall be billed.
B Duplex (two-
family)
residential users
(flat rate)
$52.68 per month
Duplex (two-
family)
residential users
(metered water
use)
$19.52 per month plus $2.929 per 1,000
gallons of either winter quarter water use or
4,000 gallons, whichever is greater. For
duplex customers who have not established a
winter quarter water use at the service
address, a system average 7,200 gallons shall
be billed.
C Multi-family
residential user
$2.929 per 1,000 gallons of winter quarter
water use, plus a base charge of $2.30 per
- 3 -
(more than two
dwelling units
including mobile
home parks) and
winter quarter
based
nonresidential
user
month per dwelling unit served. For multi-
family customers who have not established a
winter quarter water use at the service
address, a system average of 3,400 gallons
per living unit shall be billed. However,
Category D rates will apply to multi-family
residential units under construction during
the period of service from the installation of
the water meter to the date the certificate of
occupancy is issued.
D Minor
nonresidential
user
$2.929 per 1,000 gallons of water use,
measured sewage flow or winter quarter
water use, whichever is applicable, plus the
following applicable base charge:
Size of water meter (inches) Base charge
¾ or smaller $ 8.46
1 19.52
1½ 39.28
2 67.21
3 107.38
4 169.59
6 743.42
8 858.38
E and F Intermediate
nonresidential
user and
Significant
industrial user
$2.929 per 1,000 gallons of water use,
measured wastewater flow or winter quarter
water use, whichever is applicable; plus a
surcharge of $3.029 per million gallons for
each milligram per liter of suspended solids
in excess of 235 milligrams per liter; plus a
surcharge of $2.523 per million gallons for
each milligram per liter of BOD in excess of
265 milligrams per liter or a surcharge of
$1.593 per million gallons for each
milligram per liter of COD in excess of 400
milligrams per liter, or a surcharge of $4.716
per million gallons for each milligram per
liter of TOC in excess of 130 milligrams per
liter, whichever is applicable. The user shall
pay this calculated amount plus the
applicable base charge set forth below:
Size of water meter (inches) Base charge
¾ or smaller $ 8.46
- 4 -
1 19.52
1½ 39.28
2 67.21
3 107.38
4 169.59
6 743.42
8 858.38
G User outside
City limits
The rate for users outside the City limits
shall be the same as for like service inside
the City limits as is specified in Categories
A—F and H in this Section
H Special with
agreement
The rate pursuant to a special wastewater
services agreement approved by the City
Council pursuant to § 26-290 shall be set
forth in said agreement.
Section 4. That the amendments to Chapter 26 of the City Code contained herein
shall go into effect for all wastewater service provided after the effective date of this Ordinance.
Introduced and considered favorably on first reading, and ordered published this 18th day
of February, A.D. 2014, and to be presented for final passage on the 4th day of March, A.D.
2014.
______________________________
Mayor
ATTEST:
_____________________________
City Clerk
Passed and adopted on final reading on the 4th day of March, A.D. 2014.
______________________________
Mayor
ATTEST:
_____________________________
City Clerk