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Home My WebLink AboutCOUNCIL - AGENDA ITEM - 05/20/2014 - SECOND READING OF ORDINANCE NO. 068, 2014, CLARIFYAgenda Item 21 Item # 21 Page 1 AGENDA ITEM SUMMARY May 20, 2014 City Council STAFF Lance Smith, Strategic Financial Planning Manager SUBJECT Second Reading of Ordinance No. 068, 2014, Clarifying Ordinance No. 028, 2014, Relating to Wastewater Rates. EXECUTIVE SUMMARY This Ordinance, adopted on First Reading on May 6, 2014 by a vote of 6-0 (Campana recused) clarifies the City Council’s intent in adopting Ordinance No. 028, 2014, in order to ensure there is no confusion regarding the correct wastewater rates for 2014. Ordinance No. 150, 2013 established new wastewater rates for all customers to be effective January 1, 2014. These rates were implemented as intended for all bills on or after January 1, 2014. Ordinance No. 028 added language to certain sections of the City Code regarding how wastewater rates are charged during construction of multi-family residential developments. Because there is potential for confusion and misrepresentation of the City Council’s intent from the way Ordinance No. 028, 2014, as finally published, represented Section 26-280 of the City Code, this Ordinance is intended to clarify the City Council’s intent and ensure correct codification of the 2014 wastewater rates. STAFF RECOMMENDATION Staff recommends adoption of the Ordinance on Second Reading. ATTACHMENTS 1. First Reading Agenda Item Summary, May 6, 2014 (w/o attachments) (PDF) 2. Ordinance No. 068, 2014 (PDF) Agenda Item 11 Item # 11 Page 1 AGENDA ITEM SUMMARY May 6, 2014 City Council STAFF Lance Smith, Strategic Financial Planning Manager SUBJECT First Reading of Ordinance No. 068, 2014, Clarifying Ordinance No. 028, 2014, Relating to Wastewater Rates. EXECUTIVE SUMMARY The purpose of this item is to clarify the City Council’s intent in adopting Ordinance No. 028, 2014, in order to ensure there is no confusion regarding the correct wastewater rates for 2014. Ordinance No. 150, 2013 established new wastewater rates for all customers to be effective January 1, 2014. These rates were implemented as intended for all bills on or after January 1, 2014. Ordinance No. 028 added language to certain sections of the City Code regarding how wastewater rates are charged during construction of multi- family residential developments. Because there is potential for confusion and misrepresentation of the City Council’s intent from the way Ordinance No. 028, 2014, as finally published, represented Section 26-280 of the City Code, this Ordinance is intended to clarify the City Council’s intent and ensure correct codification of the 2014 wastewater rates. STAFF RECOMMENDATION Staff recommends adoption of this Ordinance on First Reading. BACKGROUND / DISCUSSION In the fall of 2013, Ordinance No. 150, 2013 was adopted by the City Council reflecting the rate class specific adjustments resulting from the updated cost of service study and an overall 3% increase in operating revenue for wastewater services effective January 1, 2014. All customer bills generated on or after that date have included the 2014 rates as reflected in Ordinance No. 150, 2013. Ordinance No, 028, 2014, adopted on Second Reading on March 4, 2014 and effective ten days later, added language to Section 26-280 of the City Code in order to state which of the wastewater charges apply to wastewater service provided during the construction of multi-family residential developments. The Ordinance clearly indicated a single sentence to be added to the explanation of the wastewater rate applicable to customer category “C”, clearly delineated and marked on First Reading of the Ordinance, and the City Council’s intent in adopting the Ordinance is clear from the Agenda Item Summary and other related documents and the recitals and other content of the Ordinance. However, the way the Ordinance in its finalized form represented the remainder of Section 26-280 has created confusion as to the Council’s intent related to the table of wastewater service charges. That is because Section 26-280 contains the full table of charges for wastewater service, and that table did not yet reflect the adjustments made effective January 1, 2014 that were enacted in Ordinance No. 150, 2013. This Ordinance has been proposed for adoption in order to ensure that the correct wastewater rates for 2014 are accurately codified, this Ordinance. FINANCIAL / ECONOMIC IMPACTS This Ordinance is necessary to avoid confusion as to 2014 wastewater rates, and ensures that Utility revenues remain at the level anticipated during budgeting. ATTACHMENT 1 Agenda Item 11 Item # 11 Page 2 ATTACHMENTS 1. Copy of Agenda Item Summary for Ordinance No. 028, 2014, February 18, 2014 (PDF) 2. Ordinance No. 150, 2013 (DOCX) 3. Ordinance No. 028, 2014 - First Reading (DOCX) - 1 - ORDINANCE NO. 068, 2014 OF THE COUNCIL OF THE CITY OF FORT COLLINS CLARIFYING ORDINANCE NO. 028, 2014, RELATING TO WASTEWATER RATES 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, on October 15, 2013, the City Council adopted on second reading Ordinance No. 150, 2013, amending Section 26-280 and Section 26-283 of the City Code to set wastewater rates for 2014, effective January 1, 2014; and WHEREAS, on February 18, 2014, the City Council adopted on first reading Ordinance No. 028, 2014, amending the City Code to specify the wastewater rates applicable to multi- family units until a certificate of occupancy has been issued for the units; and WHEREAS, Ordinance No. 028 added language to Section 26-278, Section 26-279 and Section 26-280, and in particular revised Section 26-280 by the addition of a sentence at the end of the explanation of the rate applicable to customer category “C” (Multi-family residential user); and WHEREAS, although the revision to Section 26-280 was clearly marked in Ordinance No. 028 on first reading, the remainder of Section 26-280 as shown on second reading of the Ordinance on March 4, 2014, erroneously misstated the wastewater rates as those that were in effect prior to the adoption of Ordinance No. 150, 2013; and WHEREAS, although the City Council’s purpose and intended revision to Section 26- 280 are unambiguous, the codification of Ordinance No. 028, without clear direction to the codifiers from the City Council, could result in an erroneous change to the City’s wastewater rates; and WHEREAS, in light of the foregoing, it is the City Council’s desire to clearly state and reaffirm the wastewater rates for 2014, as provided in Ordinance No. 150, 2014, together with the intended additional language set forth in Ordinance No. 028, as set forth herein. - 2 - NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows: Section 1. That the City Council hereby clarifies and reaffirms its intent in the adoption of Ordinance No. 028, 2014, to modify Section 26-280 only by the addition of a single new sentence clarifying multi-family rates, and hereby ratifies any action taken by any officers or employees of the City pursuant to Ordinance No. 150, 2014. Section 2. That it is the intent of the City Council that Section 26-280 of the Code of the City of Fort Collins shall read and, to the extent necessary is hereby amended nunc pro tunc March 4, 2014, 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) $36.29 per month Single-family residential user (metered water use) $16.21 per month plus $3.150 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) $49.71 per month Duplex (two- family) residential users (metered water use) $18.42 per month plus $2.764 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 (more than two dwelling units including mobile $3.051 per 1,000 gallons of winter quarter water use, plus a base charge of $2.40 per month per dwelling unit served. For multi- family customers who have not established a winter quarter water use at the service - 3 - home parks) and winter quarter based nonresidential user 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 $2.823 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 $ 8.15 1 18.81 1½ 37.85 2 64.77 3 103.48 4 163.43 6 716.42 8 827.20 E and F Intermediate nonresidential user and Significant industrial user $2.823 per 1,000 gallons of water use, measured wastewater flow or winter quarter water use, whichever is applicable; plus a surcharge of $3.120 per million gallons for each milligram per liter of suspended solids in excess of 235 milligrams per liter; plus a surcharge of $2.599 per million gallons for each milligram per liter of BOD in excess of 265 milligrams per liter or a surcharge of $1.641 per million gallons for each milligram per liter of COD in excess of 400 milligrams per liter, or a surcharge of $4.857 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 $ 8.15 1 18.81 1½ 37.85 2 64.77 - 4 - 3 103.48 4 163.43 6 716.42 8 827.20 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. Introduced, considered favorably on first reading, and ordered published this 6th day of May, A.D. 2014, and to be presented for final passage on the 20th day of May, A.D. 2014. __________________________________ Mayor ATTEST: _____________________________ City Clerk Passed and adopted on final reading on this 20th day of May, A.D. 2014. __________________________________ Mayor ATTEST: _____________________________ City Clerk