HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 04/21/2015 - FIRST READING OF ORDINANCE NO. 052, 2015, AMENDINGAgenda 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
Agenda Item 16
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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
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ATTACHMENTS
1. Water Board minutes, February 19, 2015 (draft) (PDF)
2. Powerpoint presentation (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
City Council Meeting
April 21, 2015
Jon Haukaas, Operations Manager
Water Engineering & Field Services
Water Plant Investment Fee Waiver
for Native Vegetation Establishment
ATTACHMENT 2
First Reading of an Ordinance
Amending Chapter 26 of the Code
of the City of Fort Collins
Allow for the waiver of Plant Investment Fee
for a temporary connection (3 Year maximum)
for irrigation to establish Native Vegetation
2
Purpose
A Water Plant Investment Fee (WPIF)
is required for all connections to the Water System
Chapter 26-120(a)
• The WPIF is based on the permanent demand placed on
the system due to the connection.
• Required for all direct connections to the system.
• Payment of the WPIF creates a Vested Right to water
deliveries through the distribution system.
• Subject payment of use charges and other miscellaneous fees.
3
Plant Investment Fee
4
Restoration Project Focus
- Native Vegetation
• The City actively
pursues native
vegetation for
greenspaces and
landscaping.
• Successful vegetation
establishment typically
requires irrigation only
in its first two to three
years.
The ratepayers of the Utility benefit by:
• 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.
• It is to the advantage of our customers to maximize that
availability of the system, 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.
5
Ratepayer Benefit
Direct Connection
A direct connection is often
the most desirable and
efficient.
6
Typically the only way to
provide large volumes of
water to major restoration
areas.
Fossil Creek Restoration Project
Preparation for seeding and landscaping installation, April 2015 7
West Vine Restoration Project
Native vegetation establishment in progress using temporary irrigation 8
“Temporary” Use
For purposes of this action, Temporary Use refers to a
finite number of years.
Not to be confused with a use that is only the
summer irrigation season.
The summer irrigation season represents the peak demand
on our system and therefore the worst case.
Temporary uses are the first demand eliminated when
implementing water restrictions as a drought response.
9
Temporary vs. Permanent Demand
Temporary use:
Projects to establish Native Vegetation or Xeriscape
Projects would use excess capacity of the existing
system for a period not to exceed three years.
Permanent use:
Homeowners Associations greenspace and
Community Supported Agriculture
Projects create a permanent demand on the system
therefore adding to the demand rather than use of
excess capacity.
10
Alternatives for Small Areas
Existing Code 26-124:
• Allows for rental of bulk water through metered use of a fire hydrant.
• Commonly used
throughout the
City.
• Typically 20-30
in use at any
given time.
11
Use Rates
Rate for use of water:
Based on the fee established for bulk water sales
Water station
Hydrant rental
This Ordinance, if approved.
$6.00 per one 1000 gallons of metered water use.
City Code 26-129 (b)(4)
12
Recommendation
13
Staff recommends approval of the Ordinance to
continue providing World Class projects to the
citizens of Fort Collins by the most cost
effective and efficient means.
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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.
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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. 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. 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 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 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
period is necessary because the applicant’s regular water supply has become
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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 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
Passed and adopted on final reading on the 5th day of May, A.D. 2015.
__________________________________
Mayor
ATTEST:
_______________________________
City Clerk