HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 11/04/2014 - ITEMS RELATING TO CITY CODE CLARIFICATIONS FOR PLAAgenda Item 4
Item # 4 Page 1
AGENDA ITEM SUMMARY November 4, 2014
City Council
STAFF
Lance Smith, Strategic Financial Planning Manager
SUBJECT
Items Relating to City Code Clarifications for Plant Investment Fees.
EXECUTIVE SUMMARY
A. Second Reading of Ordinance No. 147, 2014, Amending Chapter 26 of the City Code to Revise Water
Plant Investment Fees, Excess Water Surcharge Rates and Raw Water Requirements for Meters Larger
Than Two Inches in Size.
B. Second Reading of Ordinance No. 148, 2014, Amending Section 26-284 of the City Code to Clarify the
Calculation of Infiltration and Inflow in Determining Sewer Plant Investment Fees.
These Ordinances, unanimously adopted on First Reading on October 21, 2014, address several sections of
Chapter 26 of the City Code relating to how plant investment fees are calculated and when the Excess Water
Use Surcharge is applicable. These changes do not impact the amount charged for plant investment fees or
the Excess Water Use Surcharge but rather seek to clarify the exact calculation of the fees.
STAFF RECOMMENDATION
Staff recommends adoption of the Ordinances on Second Reading.
ATTACHMENTS
1. First Reading Agenda Item Summary, October 21, 2014 (w/o attachments) (PDF)
2. Ordinance No. 147, 2014 (PDF)
3. Ordinance No. 148, 2014 (PDF)
Agenda Item 11
Item # 11 Page 1
AGENDA ITEM SUMMARY October 21, 2014
City Council
STAFF
Lance Smith, Strategic Financial Planning Manager
SUBJECT
Items Relating to City Code Clarifications for Plant Investment Fees.
EXECUTIVE SUMMARY
A. First Reading of Ordinance No. 147, 2014, Amending Chapter 26 of the City Code to Revise Water Plant
Investment Fees, Excess Water Surcharge Rates and Raw Water Requirements for Meters Larger Than
Two Inches in Size.
B. First Reading of Ordinance No. 148, 2014, Amending Section 26-284 of the City Code to Clarify the
Calculation of Infiltration and Inflow in Determining Sewer Plant Investment Fees.
The purpose of this item is to address several sections of Chapter 26 of the City Code relating to how plant
investment fees are calculated and when the Excess Water Use Surcharge is applicable. These changes do
not impact the amount charged for plant investment fees or the Excess Water Use Surcharge but rather seek
to clarify the exact calculation of the fees.
STAFF RECOMMENDATION
Staff recommends adoption of these ordinances on First Reading.
BACKGROUND / DISCUSSION
A. Proposed Changes on Water Plant Investment Fees, Excess Water Use Surcharge Rates, and Raw
Water Requirements for Meters Larger than Two Inches
The current City Code Section 26-128 (5) paragraph (b) suggests that plant investment fees for water
connections larger than two inches are negotiated with the Utilities Executive Director. Plant investment fees
are not negotiated but rather determined by a cost allocation method. The plant investment fees are
determined based on the peak day demand of the connection and a gallon per day charge of $4.43. The
change proposed here makes this explicit in the Code so that a customer may calculate the fee independently
and does not reflect any change in the current plant investment fee charge.
The current City Code Section 26-129 paragraph (c) refers to the “surcharge” which may not be descriptive
enough to a customer to understand what surcharge is being referenced. The proposed changes make it clear
that the surcharge is the Excess Water Use surcharge. The same clarification is being proposed for Sec 26-
149 paragraphs (d) and (e).
In 2013 a change was made to the City Code to recognize that water taps larger than two inches are unique
enough to the development that the fees and allotments associated with such taps should be determined on a
development specific basis using a standard allocation methodology. The three inch meter size was
eliminated from the table in Sec. 26-128 paragraph (5) at that time. The three inch meter size should have
also been eliminated from the table in Sec. 26-129 paragraph (c) (3) and Sec. 26-149 paragraph (b) at that
time. This ordinance addresses these issues. Sec. 26-149 paragraph (c) should have been modified as well.
ATTACHMENT 1
Agenda Item 11
Item # 11 Page 2
Modification of Sec. 26-149 paragraph (c) may change the amount of raw water required for service from the
fixed amount currently listed in the table. The new amount may be higher or lower than the current fixed
requirement depending on the specific development needs for water.
B. Clarifying the Calculation of Infiltration and Inflow in Sewer Plant Investment Fees
The current City Code Section 26-284 paragraph (d) presents a formula for calculating the plant investment
fees associated with Category H non-residential development. The formula references the infiltration and
inflow (I&I flow) but does not state what that value is for purposes of the calculation. This Ordinance will allow
a customer to calculate the associated plant investment fees directly by stating that the I&I Flow is equal to
46.5% of the site flow.
FINANCIAL / ECONOMIC IMPACTS
The proposed changes will not have any financial impact on customers as these changes are only intended to
clarify how current charges are calculated.
ENVIRONMENTAL IMPACTS
The proposed changes will not have any environmental impacts.
BOARD / COMMISSION RECOMMENDATION
Because these ordinances are only intended to clarify existing language these ordinances were not presented
to any Boards for their consideration.
PUBLIC OUTREACH
No public outreach has been done with respect to these ordinances.
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ORDINANCE NO. 147, 2014
OF THE COUNCIL OF THE CITY OF FORT COLLINS
AMENDING CHAPTER 26 OF THE CODE OF THE CITY OF FORT COLLINS
TO REVISE WATER PLANT INVESTMENT FEES, EXCESS WATER
SURCHARGE RATES, AND RAW WATER REQUIREMENTS
FOR METERS LARGER THAN TWO INCHES IN SIZE
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 water utility, as set forth therein; and
WHEREAS, City Code Section 26-120 provides for water plant investment fees to be
based on and used for growth-related capital expansion costs of water supply, storage,
transmission, treatment and distribution facilities, and related factors; and
WHEREAS, City Code Section 26-120 further requires that the City Manager annually
review the parameters and rates of the water plant investment fees and also requires that the City
Manager present such fees to the City Council for approval no less frequently than biennially;
and
WHEREAS, City Code Sections 26-128, 26-129, and 26-149 concern various fees, rates,
and requirements applicable to water service with meters larger than two inches in size; and
WHEREAS, it would be beneficial to revise certain portions of the City Code with
respect to two-inch and three-inch meters so that the City Code is consistent in this respect; and
WHEREAS, it would be beneficial to set forth a specific calculation for the water plant
investment fee for meters larger than two inches in size to ensure equal application of the fee;
and
WHEREAS, the City Manager and City staff have recommended to the City Council that
the following changes be made.
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF
FORT COLLINS as follows:
Section 1. That Section 26-128 of the Code of the City of Fort Collins is hereby
amended to read as follows:
Sec. 26-128. Schedule C, water plant investment fees.
The water plant investment fee prescribed in § 26-120 shall be payable by users both inside
and outside of the City, as follows:
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…
(5) Nonresidential service:
a. Service to all nonresidential taps, including, but not limited to, taps for
commercial and industrial service, shall be charged according to the size of the
meter pursuant to the following schedule:
Meter Size
(inches)
Nonresidential
Plant
Investment Fee
¾ $ 7,000
1 19,050
1½ 41,600
2 64,410
b. The fee for all meters larger than two (2) inches shall be calculated by
multiplying the estimated peak daily demand by $4.43 / gallons, but shall not be
less than the charge for a two-inch meter.
Section 2. That Section 26-129 of the Code of the City of Fort Collins is hereby
amended to read as follows:
Sec. 26-129. Schedule D, miscellaneous fees and charges.
…
(c) The fees and requirements for raw water shall be as follows:
(1) To satisfy raw water requirements (RWR) with in-lieu cash payments, the
rate per acre-foot of RWR is sixty-five hundred dollars ($6,500).
(2) Excess Water Use Surcharge assessed on commercial and irrigation taps
when water use is in excess of the applicable annual allotment shall be three
dollars and six cents ($3.06) per one thousand (1,000) gallons.
(3) The annual water allotment, based on the minimum RWR shall be as
follows:
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Meter Size
(inches)
Annual Allotment
(gallons/year)
¾ 293,270
1 977,550
1½ 1,955,110
2 3,128,170
Above 2 325,851 gallons
per acre foot RWR
. . .
Section 3. That Section 26-149 of the Code of the City of Fort Collins is hereby
amended to read as follows:
Sec. 26-149. Raw water requirement; nonresidential service.
…
(b) The minimum RWR for water meters up to two and zero tenths (2.0) inches in
diameter are as follows:
Meter Size
(inches)
RWR
(acre-feet)
¾ .90
1.0 3.00
1.5 6.00
2.0 9.60
(c) The RWR for customers requiring a meter larger than two and zero tenths (2.0)
inches, and for customers requiring two (2) or more meters, shall be determined by
multiplying the applicant's estimate of peak annual use, or the total annual allotment for
the meter or meters, whichever is greater, by one and ninety-two one-hundredths (1.92),
provided that such estimate is first approved and accepted by the Utilities Executive
Director.
(d) Upon application for a water service permit after March 1, 1984, each applicant
who is a nonresidential user shall be assigned an annual allotment of water equal to the
greater of the RWR as determined pursuant to this Section and any RWR that was
satisfied at the time of application for nonresidential water service. Further, in the event
that, pursuant to Subsection (f) below, a nonresidential user submits more raw water than
required under the provisions of this Subsection, then the annual allotment shall be
determined pursuant to said Subsection (f). When a user uses more water than the annual
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allotment, as determined by monthly billing records in a given calendar year, an Excess
Water Use Surcharge in the amount prescribed in § 26-129 will be assessed on the
volume of water used in excess of the annual allotment.
(e) In the event an applicant applying for a nonresidential water service permit has,
prior to March 1, 1984, surrendered water rights or otherwise satisfied the requirements
of the City under an earlier water development program, then the minimum RWR for that
property shall be considered satisfied under this Section. However, such nonresidential
user shall be subject to the Excess Water Use Surcharge when the annual allotment is
exceeded.
…
Section 4. That the amendments to Chapter 26 of the Code of the City of Fort Collins
contained herein shall go into effect on January 1, 2015.
Introduced, considered favorably on first reading, and ordered published this 21st day of
October, A.D. 2014, and to be presented for final passage on the 4th day of November, A.D.
2014.
__________________________________
Mayor
ATTEST:
_______________________________
City Clerk
Passed and adopted on final reading on the 4th day of November, A.D. 2014.
__________________________________
Mayor
ATTEST:
_______________________________
City Clerk
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ORDINANCE NO. 148, 2014
OF THE COUNCIL OF THE CITY OF FORT COLLINS
AMENDING SECTION 26-284 OF THE CODE OF THE CITY OF FORT COLLINS
TO CLARIFY THE CALCULATION OF INFILTRATION AND INFLOW
IN DETERMINING SEWER PLANT INVESTMENT FEES
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 water utility, as set forth therein; and
WHEREAS, City Code Sections 26-284 concerns sewer plant investment fees, which are
to be based on and used for growth-related capital expansion costs of wastewater collection,
transmission and treatment facilities; and
WHEREAS, it would be beneficial to clarify the manner in which the infiltration and
inflow factor is calculated for the purpose of sewer plant investment fees in the City Code; and
WHEREAS, the City Manager and City staff have recommended to the City Council that
the following changes to Section 26-284 be adopted.
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF
FORT COLLINS as follows:
Section 1. That Section 26-284 of the Code of the City of Fort Collins is hereby
amended to read as follows:
Sec. 26-284. Sewer plant investment fees and surcharges established.
…
(d) The amount of the plant investment fee and surcharge for each nonresidential
surcharged user, users in Category H and any user that is expected to generate greater
than its proportionate share of peak day flow at the treatment plant for the applicable
category (including both contributed wastewater volume and volume related to
infiltration and inflow), shall be calculated utilizing the following formula:
SPIF = Site Flow x [Flow$ + (BOD x BOD
$) + (TSS x TSS$
)] + I&I Flow x [Flow$ + (200
mg/l x BOD$) + (250 mg/l x TSS
$)]
Where:
SPIF = Plant investment fee for Category H users and users discharging wastewater
with average concentrations of BOD and/or TSS which exceed those
average concentrations which are set forth in § 26-282(b) under Category E-
34
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Site
Flow
= The user's proportionate share of peak day flow at the treatment plant based
on site flow discharge from user’s site
I&I
Flow
= That proportionate share of peak day flow due to infiltration and inflow as
allocated to user's site flow discharge. I&I Flow is calculated to be 46.5% of
Site Flow.
Flow$ = $6.26 per gallon (unit cost of facilities attributable to treating wastewater
flow)
BOD = Average BOD concentration for user category or measured BOD
concentration for the user as determined in accordance with Subsection (c)
of this Section, but not less than 200 mg/l
BOD$ = $0.0152 per mg/l (unit cost of facilities attributable to treating BOD)
TSS = Average TSS concentration for user category or measured TSS
concentration for the user as determined in accordance with Subsection (c)
of this Section, but not less than 250 mg/l
TSS$ = $0.0122 per mg/l (unit cost of facilities attributable to treating TSS)
…
Section 2. That the amendments to Section 26-284 of the Code of the City of Fort
Collins contained herein shall go into effect on January 1, 2015.
Introduced, considered favorably on first reading, and ordered published this 21st day of
October, A.D. 2014, and to be presented for final passage on the 4th day of November, A.D.
2014.
__________________________________
Mayor
ATTEST:
_______________________________
City Clerk
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Passed and adopted on final reading on the 4th day of November, A.D. 2014.
__________________________________
Mayor
ATTEST:
_______________________________
City Clerk