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HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 08/16/2016 - SECOND READING OF ORDINANCE NO. 085, 2016, AMENDINAgenda Item 2 Item # 2 Page 1 AGENDA ITEM SUMMARY August 16, 2016 City Council STAFF Jon Haukaas, Water Engr Field Operations Mgr SUBJECT Second Reading of Ordinance No. 085, 2016, Amending Sections 26-98 and 26-128 of the Code of the City of Fort Collins Regarding Fire Sprinkler Systems for Single Family Attached Homes. EXECUTIVE SUMMARY This Ordinance, unanimously adopted on First Reading on July 19, 2016, creates a new rate class to accommodate the short-term high flow rate water service demands for single family attached homes with residential fire suppression systems and to make related changes regarding water meter requirements and installation. Changes to the International Residential Code adopted by the City in 2014 increased the short- term high flow rate water service demands for single family attached homes (such as townhomes and condominiums) due to the inclusion of residential fire suppression systems. A new rate class will be created in order to accommodate these demands and to make related changes regarding water meter requirements and the installation related to fire sprinkler systems for single family attached homes. Staff will provide a report to Council in September 2017 after one year of implementation to compare the average monthly usage of any new 1-inch residential services installed under the new rate code adopted through this Ordinance to the usage of similar previous standard ¾-inch residential services. STAFF RECOMMENDATION Staff recommends adoption of the Ordinance on Second Reading. ATTACHMENTS 1. First Reading Agenda Item Summary, July 19, 2016 (w/o attachments) (PDF) 2. Ordinance No. 085, 2016 (PDF) Agenda Item 6 Item # 6 Page 1 AGENDA ITEM SUMMARY July 19, 2016 City Council STAFF Jon Haukaas, Water Engr Field Operations Mgr SUBJECT First Reading of Ordinance No. 085, 2016, Amending Sections 26-98 and 26-128 of the Code of the City of Fort Collins Regarding Fire Sprinkler Systems for Single Family Attached Homes. EXECUTIVE SUMMARY The purpose of this item is to create a new rate class to accommodate the short-term high flow rate water service demands for single family attached homes with residential fire suppression systems and to make related changes regarding water meter requirements and installation. Changes to the International Residential Code adopted by the City in 2014 increased the short-term high flow rate water service demands for single family attached homes (such as townhomes and condominiums) due to the inclusion of residential fire suppression systems. Staff is proposing that a new rate class be created in order to accommodate these demands and to make related changes regarding water meter requirements and the installation related to fire sprinkler systems for single family attached homes. STAFF RECOMMENDATION Staff recommends adoption of the Ordinance on First Reading. BACKGROUND / DISCUSSION Ordinance No. 020, 2014 amended Chapter 5, Article II, Division 2 of the Code of the City of Fort Collins for the purpose of adopting the 2012 International Residential Code (IRC), with Amendments. These requirements became effective August 1, 2014. This amendment requires an automatic residential fire sprinkler system in townhomes and two-family dwellings that are installed in accordance with Section P2904, NFPA 13D, or NFPA 13R. These (P2904) combination fire-suppression/potable water systems use the standard water piping to feed plumbing fixtures and the fire sprinkler heads. These systems are typically designed by the manufacturer and are sized for the water flow when two sprinkler heads are activated. Each fire sprinkler head requires 13 gallons per minute (gpm) of flow for a total demand of 26 gpm. As developers began designing and submitting projects to meet these requirements, it became apparent that the standard residential ¾-inch water service line contemplated by Code could not provide the flow necessary to meet the IRC requirements. Further investigation by Utility staff of the underlying Codes revealed that the IRC states a ¾-inch water service is not permitted due to pressure loss in the supply piping ahead of the fire sprinkler system. A 1-inch diameter residential water service or larger would be required to meet the IRC minimum requirements. The entire Water Cost of Service study is based on the service size, assuming typical flow rates. The typical Plant Investment Fee (PIF) of a standard residential ¾-inch water service is $7180. Currently, all residential water service lines are ¾-inch in diameter. A 1-inch diameter water service line is currently considered a commercial use in the Code. The PIF for a 1-inch water service line is $19,710, a significant cost increase to provide higher flow rates on a property that would only be needed extremely infrequently. ATTACHMENT 1 Agenda Item 6 Item # 6 Page 2 A. Proposed Amendment to City Code Section 26-128 In order to meet this demand in a reasonable and cost effective manner, staff is recommending the creation of an additional residential rate class for 1-inch water service lines to single family attached homes required to install these residential fire suppression systems. (It would not be available as an alternate rate class for commercial properties.) This change is proposed to be effective for all PIFs due and payable on or after June 1, 2016. These residential fire suppression systems would be activated only on rare occasions and therefore should not have a measureable effect on average or total water use of a typical home. Staff is consequently not proposing any related changes to the raw water requirement (RWR) for single family attached homes using a residential 1-inch water service line, instead of a residential ¾-inch water service line. The RWR for these single family attached homes (and all residential properties) will continue to be calculated under Code Section 26-148, which does not specify meter size in calculating the RWR. B. Proposed Amendment to City Code Section 26-98 Under current Code, all residential water service lines are assumed to be ¾-inch in diameter. Staff is recommending that this section be revised to expressly identify both the ¾-inch and 1-inch residential water service line. This updated section also identifies the locations where such meters are to be located. CITY FINANCIAL IMPACTS There are some additional material costs due to the larger size; staff is recommending an additional cost to the 1-inch diameter water service PIF of $500 above that for ¾-inch diameter water service PIF. The residential fire suppression systems would be activated only on rare occasions and should not have a measureable effect on average or total water use of a typical home. The tiered water rates and surcharges for excess use will recover all actual costs if an owner overuses the connection due to its larger size. BOARD / COMMISSION RECOMMENDATION At its June 16, 2016 meeting, the Water Board expressed unanimous support to recommend to Council adoption of the changes. PUBLIC OUTREACH These changes are being driven by recognition from the development community that there was an inconsistency between various City Code sections. These proposed changes address the issues raised by the public. The items were noted on the “Agenda” notice for the June Water Board Meeting. ATTACHMENTS 1. Water Board minutes, June 16, 2016 (draft) (PDF) -1- ORDINANCE NO. 085, 2016 OF THE COUNCIL OF THE CITY OF FORT COLLINS AMENDING SECTIONS 26-98 AND 26-128 OF THE CITY CODE REGARDING FIRE SPRINKLER SYSTEMS FOR SINGLE FAMILY ATTACHED HOMES WHEREAS, on February 4, 2014, City Council approved Ordinance No. 020, 2014, which, among other things, adopted the 2012 International Residential Code with amendments (“IRC”); and WHEREAS, the IRC requires automatic residential fire sprinkler systems in single family attached homes, such as townhomes, which are combination potable / fire suppression water systems that deliver water to both standard plumbing fixtures and the fire sprinklers; and WHEREAS, the standard water meter and line for water service to single family attached homes in the Fort Collins Utilities service area is currently three-quarter inch; and WHEREAS, the IRC provides that a water service line of three-quarter inch or smaller is not permitted for use in such combination potable / fire suppression water systems due to a loss of pressure in the water service line that reduces the flow rate available at the fire sprinklers; and WHEREAS, water plant investment fees (“PIFs”) in City Code are based on the size of the water service line and assume typical flow rates, which do not adequately consider the short term high flow water service needs of residential fire sprinkler systems for single family attached homes; and WHEREAS, the installation of residential fire sprinkler systems is not anticipated to increase the overall use of water in typical single family attached homes, and any increased use will be captured in existing water rates and surcharges; and WHEREAS, requiring the installation of a one-inch water service line for single family attached homes results in a significant increase of the PIF that is not justified based on the rarity with which the residential fire sprinkler systems are anticipated be used; and WHEREAS, the rates set forth herein will produce revenues sufficient to pay the cost of operation and maintenance of the City’s water utility in good repair and working order; and WHEREAS, the use of a one inch water meter and line for water service to single family attached homes in the Fort Collins Utilities service area requires changes to Code Section 26-98 regarding water meter requirements and installation; and WHEREAS, the changes to City Code set forth herein are necessary for the sound operation and management of the water utility. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows: -2- Section 1. That the City Council hereby makes and adopts the determinations and findings contained in the recitals set forth above. Section 2. That Section 26-98 of the Code of the City of Fort Collins is hereby amended to read as follows: Sec. 26-98. - Water meter requirements and installation. … (f) Water Meter Installations shall meet the requirements of the Utilities standard construction specifications adopted by the Utilities Executive Director. Additionally: (1) Meters shall not be installed in a crawl space. (2) Residential ¾” meters may be installed interior or exterior to the building. (3) All meter installations for meter sizes of 1” or larger shall be installed in an exterior location. (4) Modifications to the installation locations required under this Subsection (f) may be approved by the Utilities Executive Director if the Utilities Executive Director first determines that it is not practicable to meet the requirements of this Subsection (f) due to the physical configuration of the subject property. … Section 3. 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 Section 26-120 shall be payable by users both inside and outside of the City, as follows: (1) Single-family residential buildings. For a single-family residential lot greater than one-half (½) acre in size, the lot size shall be deemed to be one-half (½) acre for the purpose of this fee calculation. For each additional tap or meters larger than one (1) inch, the nonresidential rate shall apply. a. For the first three-fourths-inch water tap or meter $720.00 b. For the first one-inch water tap or meter to accommodate residential fire suppression systems based upon the criteria established in the International Building $1,220 -3- Code as adopted and amended pursuant to Chapter 5 of this Code. bc. Plus, for each square foot of lot area of a lot served by either a three-fourths (3/4) inch or one (1) inch water tap or meter $0.33 (2) Residential buildings of two (2) or more dwelling units The fee will provide for one (1) tap per residential building and an adequate number of additional taps to serve common irrigable areas, if any. The number and size of taps shall be determined by the Utilities Executive Director based upon the criteria established in the International Building Code as adopted and amended pursuant to Chapter 5 of this Code. a. For each residential building unit $540.00 b. Plus, for each square foot of lot area $0.24 (3) Mobile home parks The size of the tap shall be determined by the Utilities Executive Director based upon the criteria established in the International Building Code as adopted and amended pursuant to Chapter 5 of this Code. . . . Section 4. That the modifications set forth above shall be effective for plant investment fees due and payable on or after June 1, 2016. Introduced, considered favorably on first reading, and ordered published this 19th day of July, A.D. 2016, and to be presented for final passage on the 16th day of August, A.D. 2016. __________________________________ Mayor ATTEST: _______________________________ City Clerk -4- Passed and adopted on final reading on the 16th day of August, A.D. 2016. __________________________________ Mayor ATTEST: _______________________________ City Clerk