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HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 05/05/2015 - SECOND READING OF ORDINANCE NO. 052, 2015, AMENDINAgenda Item 6 Item # 6 Page 1 AGENDA ITEM SUMMARY May 5, 2015 City Council STAFF Jon Haukaas, Water Engr Field Operations Mgr SUBJECT Second Reading of Ordinance No. 052, 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. EXECUTIVE SUMMARY This Ordinance, unanimously adopted on First Reading on April 21, 2015, amends City Code to allow the Utilities Executive Director the option to waive the water plant investment fee (WPIF) for 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 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 customer as well as the costs to disconnect at the end of that period. After further discussion, this item was modified to apply to any project meeting these goals. The Ordinance has been amended on Second Reading to revise the definition of native vegetation. STAFF RECOMMENDATION Staff recommends adoption of the Ordinance on Second Reading. BACKGROUND / DISCUSSION Based on Council feedback on First Reading, staff consulted with the Natural Areas Department regarding the definition of “native vegetation”. It is staff’s recommendation to strike the language expressly providing an alternate definition so that the subject language in the Ordinance now reads: 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, the Utilities Executive Director shall determine whether the vegetation to be irrigated is native vegetation for the purposes of this Subsection (e) following consultation with relevant City departments. Relying primarily on the City’s Land Use Code definition allows there to be a single place to update the definition of native vegetation as well as preventing the potential for conflicting language if either Code is changed in the future. In the event that native vegetation were no longer defined in the City’s Land Use Code for whatever reason, the Ordinance would provide guidance to staff regarding how to implement this subsection while allowing staff to rely on the most up-to-date information available. The current language in the City Land Use Code Section 5.1.2 Definitions is as follows: Agenda Item 6 Item # 6 Page 2 Native vegetation shall mean any plant identified in Fort Collins Native Plants: Plant Characteristics and Wildlife Value of Commercial Species, prepared by the City's Natural Resources Department, updated February 2003. ATTACHMENTS 1. First Reading Agenda Item Summary, April 21, 2015 (w/o attachments) (PDF) Agenda Item 16 Item # 16 Page 1 AGENDA ITEM SUMMARY April 21, 2015 City Council STAFF Jon Haukaas, Water Engr Field Operations Mgr SUBJECT First Reading of Ordinance No. 052, 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. 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 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 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 customer as well as the costs to disconnect at the end of that period. After further discussion, this item was modified to apply to any project meeting these goals. STAFF RECOMMENDATION Staff recommends adoption of the Ordinance on First Reading. BACKGROUND / DISCUSSION As the City has focused on more natural and sustainable capital infrastructure projects over the years, the demand for temporary irrigation water to establish vegetation has increased. Examples include the Canal Importation Basin & Outfall project at Red Fox Meadows Natural Area, Poudre River bank stabilization projects, stream restoration projects on Fossil Creek, and the channel outfall project for the West Vine basin. The latest project with a high demand for water is the Natural Areas department restoration at the new Homestead Natural Area along he Poudre River. The Utility has examined various solutions to this dilemma over time and determined that this modification to the City Code is the most reasonable method to address the issue. 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. The establishment of native vegetation reduces the long term demand for water thereby improving the sustainability of water availability in our region as well as impact to other Utility resources. 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 ATTACHMENT 1 Agenda Item 16 Item # 16 Page 2 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. Prior to complete build-out of the City and system, excess capacity does exist on a limited basis. 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 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. For the same reasoning, this waiver is not appropriate for ongoing uses such as Homeowners Associations, community gardens, or Community Supported Agriculture (CSAs) as these would require the water forever thereby adding to the overall demands on the system rather than temporarily using excess capacity. Any use adding to the demands of the system is required to pay a Plant Investment Fee. 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. 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. Use fees shall be set per City Code Subsection 26-129(b)(4) for use of water through a hydrant, which is an analogous temporary use. These fees are calculated to include a payment to satisfy the Raw Water Requirement of use of the City’s system. 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. BOARD / COMMISSION RECOMMENDATION At its February 19, 2015 meeting, the Water Board unanimously supported a recommendation that the City Council approve the Ordinance. PUBLIC OUTREACH This item is specific to projects for which the City can ensure the use will be temporary only. Staff from the Stormwater Utility, Parks, and Natural Areas were all consulted during the development of the proposed Code revision language. Agenda Item 16 Item # 16 Page 3 ATTACHMENTS 1. Water Board minutes, February 19, 2015 (draft) (PDF) 2. Powerpoint presentation (PDF) - 1 - ORDINANCE NO. 052, 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 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 for a period not to exceed three consecutive irrigation seasons is such a project of limited duration; 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 WHEREAS, the City Manager and City staff have recommended to the City Council that the following changes be made. - 2 - 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 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. Under either set of requirements, the Utilities Executive Director shall have the authority to discontinue the temporary water service if the capacity of the water utility to treat and deliver water to its users is adversely affected. (1) The applicant is a customer of the water utility and shall only use the water connection as a source of irrigation water for the establishment of new native vegetation. 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 normally does not require water in addition to precipitationthe Utilities Executive Director shall determine whether the vegetation to be irrigated is native vegetation for the purposes of this Subsection (e) following consultation with relevant City departments. 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 under this Subsection (e) during such time 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. . . . - 3 - 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. . . . Introduced, considered favorably on first reading, and ordered published this 21st day of April, A.D. 2015, and to be presented for final passage on the 5th day of May, A.D. 2015. __________________________________ Mayor ATTEST: _______________________________ City Clerk - 4 - Passed and adopted on final reading on the 5th day of May, A.D. 2015. __________________________________ Mayor ATTEST: _______________________________ City Clerk