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HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 03/03/2015 - FIRST READING OF ORDINANCE NO. 036, 2015, AMENDINGAgenda Item 10 Item # 10 Page 1 AGENDA ITEM SUMMARY March 3, 2015 City Council This Item has been withdrawn from the Agenda. STAFF Jon Haukaas, Water Engr Field Operations Mgr SUBJECT First Reading of Ordinance No. 036, 2015, Amending Chapter 26 of the Code of the City of Fort Collins to Allow for the Waiver of Certain Requirements for a Temporary Connection to the Water System as an Irrigation Source for the Establishment of Native Vegetation on Certain City Projects. EXECUTIVE SUMMARY The purpose of this item is to allow the Utilities Executive Director the option to waive the water plant investment fee (WPIF) for City projects that only require irrigation for the establishment of native vegetation during the first three years of growth. The City has actively pursued native vegetation for greenspaces and landscaping as a means to reduce long term demand and improve the sustainability of water availability in our region. Successful establishment of such vegetation typically requires irrigation in its first two to three years. After establishment, it can be successful with only the limited natural precipitation of the area. City Code requires that all connections to the water utility pay a WPIF. With this change, the Utilities Executive Director may waive the WPIF for City projects that only require irrigation for the establishment of native vegetation during these first three years of growth. All charges for water use would be due by the requesting agency as well as the costs to disconnect at the end of that period. STAFF RECOMMENDATION Staff recommends adoption of the Ordinance on First Reading. BACKGROUND / DISCUSSION City Code requires that all connections to the water utility pay a water plant investment fee. This fee recognizes the investments made by the customers of the Utility in creation of the overall system. The fee is used for growth-related capital expansion costs of water supply, storage, transmission, treatment and distribution facilities and related factors. Under the current Code, for applicants that are a City service area, department or division, and request the use of water between October 1 and April 30, the Utilities Executive Director may waive payment of the WPIF if the Utilities Executive Director determines that the requested connection will not adversely affect the capacity of the water utility to treat and deliver water for its users, in addition to certain other requirements. This item would not substantively alter this existing provision. The date ranges were specifically added to Code so that long term seasonal uses would not be eligible for this waiver. Examples of such seasonal uses would include water fountains, outdoor water features, and lawn irrigation to permanent City facilities. Such outdoor seasonal uses drive the ultimate capacity needs of the system and are therefore, also the primary driver when determining the sizing of water main installation and replacement requirements. This translates to the value of the WPIF to charge for system connections. Agenda Item 10 Item # 10 Page 2 Prior to complete build-out of the City and system, excess capacity does exist on a limited basis. City natural areas, stream restoration areas, parks, or landscaping associated with regional stormwater detention facilities provide various benefits to all customers of the Utility. It is to the advantage of our customers to maximize that availability of the system by allowing the use of this excess capacity to establish native vegetation, provided it does not impact other long term needs or adversely affect the capacity of the water utility to treat and deliver water for its users. As an example of the water needed for the establishment of a major restoration project, to irrigate a 30 acre with surface sprayers requires a 3” water connection. The WPIF for such a use is calculated based on the peak day demand and equaled approximately $164,000 in 2014. This WPIF pays for the permanent investment and ownership in the system. Staff believes it is reasonable for this WPIF to be waived on City projects that only need the connection for a period of three years or less and will not adversely affect the ability of the water utility to treat and deliver water for its users during that time. All connections will still be required to include a meter and associated infrastructure to record actual use. The department requesting the connection will continue to be responsible for the costs of installation, all application use and service charges, and will be required to escrow funds at the time of connection to cover future costs of disconnection and restoration of impacted City infrastructure. Applicants must still meet the raw water requirement (RWR) of actual use. City Code Section 26-149 does not currently address the amount of the RWR for such temporary use for the establishment of new native vegetation and does not address the amount of the annual allotment for such use. Both the RWR and the annual allotment will be calculated based on the amount of water that would be applied to the subject native vegetation during the irrigation season. The RWR will be calculated as three times the maximum estimated amount of water that would be applied to the subject native vegetation during one irrigation season, so that the RWR is not less than actual water use. The annual allotment will be the maximum estimated amount of water that would be applied to the subject native vegetation during one irrigation season, so that applicants are limited to the use of the water for the establishment of new native vegetation. City Code Section 26-150 does not currently address the satisfaction of the RWR for such temporary use for the establishment of new native vegetation, or any temporary use. The RWR will be satisfied with a payment because the temporary dedication of water will not provide meaningful benefits to the Utilities. The amount of such payment is based in the amounts for hydrant fees in City Code Subsection 26-129(b)(4), which is an analogous temporary use. It is also not the intention of this Code change to allow for a delay of payment of the WPIF for projects that will need this connection for use after the initial three year establishment period. Any connection that is anticipated to be needed for greater than three years would be required to pay the WPIF at the time of connection. CITY FINANCIAL IMPACTS As this action would allow for the use of excess capacity in the distribution system, it will result in better utilization of our infrastructure and additional revenue to the utility from the sale of water. This will provide a more economical solution to obtaining water for native vegetation establishment the purchase of a permanent water connection or compared to the cost to purchase and haul water to the site in tankers. All charges for connection to the system, the water use during the period needed, and the costs to disconnect at the end of that period, would be due by the requesting agency. BOARD / COMMISSION RECOMMENDATION At its February 19, 2015 meeting, the Water Board unanimously supported a recommendation that the City Council approve the Ordinance. Agenda Item 10 Item # 10 Page 3 PUBLIC OUTREACH This item is specific to City projects serving all citizens. Staff from the Stormwater Utility, Parks, and Natural Areas were all consulted during the development of the proposed Code revision language. ATTACHMENTS 1. Water Board minutes, February 19, 2015 (draft) (PDF) Excerpt from Unapproved Water Board Minutes February 19, 2015 Stormwater Escrow Policy (Attachments available upon request) Civil Engineer Dan Mogen of the Stormwater Department provided a PowerPoint presentation. The Water Board was also provided, prior to the meeting, an agenda item summary, draft ordinance, and several draft certification and receipt documents for residential and commercial properties. City Code currently has language allowing for the City to grant a Certificate of Occupancy (CO) if given an “acceptable assurance” that the necessary stormwater facilities will be constructed as soon as possible. For some properties, cold temperatures and frozen ground do not allow for completion of all stormwater facilities at the site even if all other aspects of the project have been completed. The City has historically accepted escrow payments without any formal written policy, fee, or timeline for completion of the stormwater projects. This agenda item is to formalize and improve upon this historical policy. Mr. Mogen thought that about 10% of development projects require this type of escrow for delayed completion of stormwater facilities, with about 180 escrow accounts in 2014 and 25 escrow accounts so far in 2015. Additional details of this agenda item were provided in the summary and related materials. Discussion: A board member inquired about the two payment structures provided in the PowerPoint presentation. Mr. Mogen and Mr. Haukaas clarified that the formulaic payment structure was for multi-lot development sites while the fixed payments were for individual lots. A board member inquired about the purpose of visual inspections by city staff. Mr. Mogen and Mr. Haukaas responded that an engineer certification would still be required at the site, but that the City visual inspection would be an informal check on the completion of planned stormwater facilities at the site. Motion: Board Member Mike Brown moved that the Water Board approve the Stormwater Escrow Procedure, and recommend that City Council approve the Ordinance amending Chapter 26 of City Code to clarify conditions under which a development may defer stormwater installation requirements to obtain a Certificate of Occupancy for up to 180 days by providing certain escrows as assurance of completion. Board Member Alex Maas seconded the motion. It passed unanimously. ATTACHMENT 1 - 1 - ORDINANCE NO. 036, 2015 OF THE COUNCIL OF THE CITY OF FORT COLLINS AMENDING CHAPTER 26 OF THE CODE OF THE CITY OF FORT COLLINS TO ALLOW FOR THE WAIVER OF CERTAIN REQUIREMENTS FOR A TEMPORARY CONNECTION TO THE WATER SYSTEM AS AN IRRIGATION SOURCE FOR THE ESTABLISHMENT OF NATIVE VEGETATION ON CERTAIN CITY PROJECTS 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 requires the payment of water plant investment fees (“WPIFs”) which reflect the investments made by the customers of the water utility in the creation of the overall water system; and WHEREAS, the WPIFs are based on and used for growth-related capital expansion costs of water supply, storage, transmission, treatment and distribution facilities and related factors; and WHEREAS, excess capacity in the existing water system may exist on a short-term basis that can be made available to projects of limited duration, which do not require capital expansions or improvements to the water system and which do not necessitate the imposition of costs related to capital expansions or improvements; and WHEREAS, the establishment of new native vegetation in a natural area, stream restoration area, park, or landscaping associated with a regional stormwater detention facility by a City service area, department, or division, for a period not to exceed three consecutive irrigation seasons is such a project of limited duration and provides various benefits to customers of the water utility and City residents; and WHEREAS, City Code Section 26-149 does not currently address the amount of the raw water requirement for such temporary use for the establishment of new native vegetation and does not address the amount of the annual allotment for such use, both of which may be based on the amount of water that would be applied to the subject native vegetation during the irrigation season; and WHEREAS, City Code Section 26-150 does not currently address the satisfaction of the raw water requirement for such temporary use for the establishment of new native vegetation, which may be satisfied through a payment in an amount equal to that used for fire hydrant fees in City Code Subsection 26-129(b)(4); and WHEREAS, it is to the advantage of water utility customers to maximize any excess capacity in the existing water system, provided that it does not adversely affect the capacity of the water utility to treat and deliver water for its users; and - 2 - 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 26-120(e) of the Code of the City of Fort Collins is hereby amended to read as follows: Sec. 26-120. Water plant investment fees. . . . (e) Notwithstanding the provisions of Subsection (a) of this Section, if the applicant desiring to connect to the water utility is a City service area, department or division, or the Poudre Fire Authority, the Utilities Executive Director may waive payment of the WPIF if the Utilities Executive Director determines that the requested connection will not adversely affect the capacity of the water utility to treat and deliver water for its users, and if at least one of the following sets of requirements applies:. Any such connection authorized by the Utilities Executive Director shall only be operated at the time and for the duration as determined by the Utilities Executive Director. In addition, a connection authorized under this Subsection (e) may not be used during the period of May 1 through September 30 of any year unless. (1) The applicant is a City service area, department or division and shall only use the water connection as a source of irrigation water for the establishment of new native vegetation in a natural area, stream restoration area, park, or landscaping associated with a regional stormwater detention facility. For the purposes of this requirement, native vegetation shall be as defined in the City’s Land Use Code or, if native vegetation is no longer defined in the City’s Land Use Code, shall be vegetation that does not require water in addition to precipitation. The approved period of such connection shall not exceed a period of three (3) consecutive irrigation seasons. The applicant shall physically separate and abandon the water connection from the City’s water distribution system at the end of the approved period of such connection and shall, before any such connection is made, escrow funds with the Utility to complete such disconnection and abandonment, with the amount of the funds to be determined by the Utilities Executive Director based on the estimated direct costs to complete such disconnection and abandonment plus fifteen (15) percent for indirect costs. (2) The applicant is a City service area, department or division, or the Poudre Fire Authority, no new physical connection to the City’s water system is required, water use under this Subsection (e) would not occur during the period of May 1 through September 30, and the Utilities Executive Director determines that the applicant’s water use of the connection under this Subsection (e) during such time - 3 - period is necessary because the applicant’s regular water supply has become unavailable during that period and the unavailability of the applicant’s regular water supply will result in measurable economic damage to the applicant. . . . Section 2. That Section 26-149 of the Code of the City of Fort Collins is hereby amended by the addition of a new subsection (g) which reads in its entirety as follows: Sec. 26-149. Raw water requirement; nonresidential service. . . . (g) Applicants seeking a temporary water connection under Subsection 26-120(e)(1) shall meet the RWR and shall be assigned an annual allotment as set forth in this Subsection. The RWR for such applicants shall be three times the maximum estimated amount of water that would be applied to the subject native vegetation during one irrigation season, as determined by the Utilities Executive Director. The annual allotment shall for such applicants shall be the maximum estimated amount of water that would be applied to the subject native vegetation during one irrigation season, as determined by the Utilities Executive Director. Section 3. That Section 25-150(a) of the Code of the City of Fort Collins is hereby amended by the addition of a new paragraph (4) which reads in its entirety as follows: Sec. 26-150. Raw water requirements; satisfaction. (a) The RWR imposed pursuant to this Division may be satisfied by one (1) or more of the following methods: . . . (4) Applicants seeking a temporary water connection under Subsection 26- 120(e)(1) shall meet the RWR by a payment to Utilities in the amount of six dollars and zero cents ($6.00) per one thousand (1,000) gallons. . . . - 4 - Introduced, considered favorably on first reading, and ordered published this 3rd day of March, A.D. 2015, and to be presented for final passage on the 17th day of March, A.D. 2015. __________________________________ Mayor ATTEST: _______________________________ City Clerk Passed and adopted on final reading on the 17th day of March, A.D. 2015. __________________________________ Mayor ATTEST: _______________________________ City Clerk