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Home My WebLink AboutCOUNCIL - AGENDA ITEM - 02/18/2014 - FIRST READING OF ORDINANCE NO. 028, 2014, AMENDINGAgenda 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. 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. - 1 - 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) Service charges are not applicable during the original construction period of the building or structure to be served. At the time a certificate of occupancy is issued for the building or structure, the charges will begin to be assessed and will continue until the water service is disconnected.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 - 3 - be billed. C Multi-family residential user (more than two dwelling units including mobile home parks) and winter quarter based nonresidential user $2.929 per 1,000 gallons of winter quarter water use, plus a base charge of $2.30 per 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 - 4 - 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 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: _____________________________ - 5 - City Clerk pay this calculated amount plus the applicable base charge set forth below: