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Home My WebLink AboutCOUNCIL - AGENDA ITEM - 11/05/2019 - FIRST READING OF ORDINANCE NO. 136, 2019, AMENDINGAgenda Item 9 Item # 9 Page 1 AGENDA ITEM SUMMARY November 5, 2019 City Council STAFF Theresa Connor, Water Engineering Field Operations Mgr Eric Potyondy, Legal SUBJECT First Reading of Ordinance No. 136, 2019, Amending Chapter 26 of the Code of the City of Fort Collins to Clarify the Application of Certain Water-Related Fees to Different Forms of Fraternity and Sorority Housing. EXECUTIVE SUMMARY The purpose of this item is to amend Chapter 26 of the City Code to clarify the application of certain water- related fees to different forms of fraternity and sorority housing. STAFF RECOMMENDATION Staff recommends adoption of the Ordinance on First Reading. BACKGROUND / DISCUSSION An applicant for a proposed land use change has brought to staff’s attention that the nature of fraternity and sorority housing is changing from dormitory style housing with large commercial kitchens to multi-family style housing without shared kitchens and bathrooms. Currently City Code has one category for fraternity and sorority housing as a commercial customer which reflects the traditional dormitory style housing with a large commercial kitchen and shared bathrooms. As an example, consider a multi-family dwelling building. An application to use that multi-family dwelling building as fraternity housing would cause a change in the water utility rates and fees to a commercial customer. The increased water and wastewater plant investment fee requirements would be approximately $230,000, despite the fact that there would be no required changes to the plumbing or number of fixtures in the building. In discussions with the applicant and their representatives, staff has learned that the nature of fraternity and sorority is changing to be more flexible. The ability to staff the kitchens is causing fraternities and sororities to move away from commercial kitchens towards self-contained units. This allows the owner of the building more flexibility in future real estate markets if the fraternity or sorority decides to make a change in their housing arrangement. Staff is proposing changes to City Code that create two categories of fraternity and sorority housing: (1) dormitory (or traditional) fraternity and sorority housing; and (2) multi-family fraternity and sorority housing. This would reflect the changing nature of fraternity and sorority housing and clarify the subsequent collection of water and sewer plant investment fees and water supply requirements for these housing types. CITY FINANCIAL IMPACTS None Agenda Item 9 Item # 9 Page 2 BOARD / COMMISSION RECOMMENDATION The Water Board voted unanimously, 8-0 on September 19, 2019, to recommend approval of the amendments. PUBLIC OUTREACH Outreach was conducted with a land use applicant seeking to use multi-family housing units as a fraternity and their legal and engineering team. They expressed agreement with the proposed changes. ATTACHMENTS 1. Minutes Excerpt - Greek Housing (PDF) Excerpt from Unapproved DRAFT MINUTES - WATER BOARD REGULAR MEETING September 19, 2019, 5:30 p.m. 222 Laporte Avenue, Colorado River Community Room 09/19/2019 – Excerpt from Unapproved DRAFT MINUTES Page 1 Utilities Fall Code Update, Greek Housing Multi-Family (Attachments available upon request) City Code currently treats all fraternity and sorority housing as nonresidential (commonly called commercial) customers. This is based on the assumption that this housing has a commercial kitchen and dormitory style housing. However, an applicant has proposed using a multi-family building as a fraternity, which has highlighted that this assumption is not always correct. This update would allow for two categories of Greek Letter Organization housing: dormitory (which includes a commercial kitchen) and multi-family. Discussion Highlights: Board members commented on and inquired about various related topics including the reason for differentiating Greek housing (staff replied that in City Code, Greek Housing is mentioned separately) if Greek and commercial housing pays the same rates; Mr. Boyle commented that the Greek letters on the sign automatically kicks up the fee to commercial. Board Member Andrew McKinley moved that Water Board recommends City Council approve proposed amendments of City Code relating to Water Plant Investment Fees, Water Supply Requirements, and Sewer Plant Investment Fees for housing associated with Greek Letter Organizations. Vice Chairperson Jason Tarry seconded the motion. Discussion on the motion: None Vote on the Motion: it passed unanimously, 8-0 ATTACHMENT 1 -1- ORDINANCE NO. 136, 2019 OF THE COUNCIL OF THE CITY OF FORT COLLINS AMENDING CHAPTER 26 OF THE CODE OF THE CITY OF FORT COLLINS TO CLARIFY THE APPLICATION OF CERTAIN WATER-RELATED FEES TO DIFFERENT FORMS OF FRATERNITY AND SORORITY HOUSING WHEREAS, the City owns and operates a water utility that provides treated water service to customers in its service area and a wastewater utility that provides wastewater service to customers in its service area; and WHEREAS, as a prerequisite for treated water service, the City charges a water plant investment fee (“WPIF”) pursuant to City Code Sections 26-120 and 26-128 and a Water Supply Requirement (“WSR”) pursuant to City Code Sections 26-147 through 26-150; and WHEREAS, as a prerequisite for wastewater service, the City charges a sewer plant investment fee (“SPIF”) pursuant to City Code Sections 26-283 and 26-284; and WHEREAS, various City Code provisions in Chapter 26, such as the WPIF, WSR, and SPIF, parallel land use designations in the City Code, including those in the Land Use Code; and WHEREAS, there are various Greek letter organizations (referred to as fraternities and sororities) in Fort Collins that are associated with Colorado State University; and WHEREAS, fraternities and sororities have historically housed members in dormitory- style housing that typically include commercial or kitchens and common bathrooms but are now more frequently housing members in multi-family dwelling housing; and WHEREAS, under City Code, the WPIF and the WSR for a particular development varies depending on whether the development requires “residential” water service (which includes single-family, duplex, mobile home, and multi-family dwelling units) or “nonresidential” water service (which includes all water service not included in the residential water service category); and WHEREAS, under City Code, the SPIF for a particular development varies depending on whether the development is a “duplex and multi-family” or “non-residential and industrial”; and WHEREAS, City Code has historically placed fraternity and sorority housing in the nonresidential water service category, whether or not the housing is in the nature of multi-family housing, and WHEREAS, staff has recommended certain changes to portions of Chapter 26 of City Code to clarify how the WPIF, the WSR, and the SPIF apply to fraternity and sorority housing depending on whether it is dormitory-style housing or multi-family housing. -2- NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows: 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 26-41 of the Code of the City of Fort Collins is hereby amended to read as follows: Sec. 26-41. - Definitions. The following words, terms and phrases, when used in this Article, shall have the meanings ascribed to them in this Section: . . . Fraternity and sorority houses shall mean the same as defined in the Land Use Code. Fraternity and sorority multi-family housing shall mean any fraternity and sorority houses that are organized as multi-family dwelling units with separate dwelling units that include separate kitchens and bathrooms per dwelling unit. Fraternity and sorority dormitory housing shall mean any fraternity and sorority houses that do not meet the definition of fraternity or sorority multi-family housing. . . . 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 § 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 three-fourths (¾) inch, the nonresidential rate shall apply. a. For the first three-fourths-inch water tap or meter $730.00 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 Code as adopted and $1,237.00 -3- amended pursuant to Chapter 5 of this Code. c. Plus, for each square foot of lot area $0.36 (2) Residential buildings of two (2) or more dwelling units (including fraternity and sorority multi-family housing) 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 Uniform Plumbing Code as amended pursuant to Chapter 5 of this Code. a. For each residential building unit $530.00 b. Plus, for each square foot of lot area $0.26 (3) Mobile home parks The size of the tap shall be determined by the Utilities Executive Director based upon the criteria established in the Uniform Plumbing Code as amended pursuant to Chapter 5 of this Code. a. For each residential building unit $530.00 b. Plus, for each square foot of lot area $0.26 (4) Hotels, rooming houses, sororities, fraternities fraternity and sorority dormitory housing, and similar uses. The nonresidential rate shall apply. (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 $7,940 -4- 1 $20,960 1½ $43,520 2 $72,470 b. The fee for all meters larger than two (2) inches shall be calculated by multiplying the estimated peak daily demand by the following charge per gallon, but shall not be less than the charge for a two-inch meter. $4.99 Section 4. That Section 26-148 of the Code of the City of Fort Collins is hereby amended to read as follows: Sec. 26-148. - Water supply requirement (WSR); residential service. (a) Residential service for WSR shall include single-family, duplex, mobile home, and multi-family dwelling units, including fraternity and sorority multi-family housing. Section 5. That Section 26-149 of the Code of the City of Fort Collins is hereby amended to read as follows: Sec. 26-149. - Water supply requirement (WSR); nonresidential service. (a) Nonresidential service for WSR shall apply to all services not included in the residential category and shall include, without limitation, all service to customers for: commercial; industrial; public entity; group housing, such as nursing homes, fraternities fraternity and sorority dormitory housing; hotels and motels; and mixed-use purposes. . . . Section 6. That Section 26-206 of the Code of the City of Fort Collins is hereby amended to read as follows: Sec. 26-206. - Definitions. The following words, terms and phrases, when used in this Article, shall have the meanings ascribed to them in this Section: . . . -5- Fraternity and sorority houses shall mean the same as defined in the Land Use Code. Fraternity and sorority multi-family housing shall mean any fraternity and sorority houses that are organized as multi-family dwelling units with separate dwelling units that include separate kitchens and bathrooms per dwelling unit. Fraternity and sorority dormitory housing shall mean any fraternity and sorority houses that do not meet the definition of GLO multi-family housing. . . . Section 7. That Section 26-278 of the Code of the City of Fort Collins is hereby amended to read as follows: Sec. 26-278. - Classification of users. The users of the wastewater utility may be divided into various classifications, including but not limited to,: single-family dwelling,; duplex,; multi-family dwelling which includes fraternity and sorority multi-family housing; and nonresidential which includes fraternity and sorority dormitory housing. Additional classifications may be established by the City for each nonresidential user class. Mobile home parks are to be classified as multi-family dwellings. Hotels, rooming houses, sororities, fraternities and similar uses are to be classified as nonresidential uses. Each user shall be classed into one (1) of the following categories and charged at the applicable rate: (1) Category A: Single-family residential users (either flat rate or metered water use). (2) Category B: Duplex (two-family) residential users (either flat rate or metered water use). (3) Category C: Multi-family residential users (more than two (2) dwelling units including mobile home parks and fraternity and sorority multi-family housing). (4) Category D: Minor nonresidential user. A minor nonresidential user is a user who discharges only wastes of a type and strength normally discharged by private residences. Category D shall also apply to multi-family residential units under construction during the period of service from the installation of the water meter to the date the certificate of occupancy is issued. All nonresidential users not subject to the provisions of Categories C, E and F shall be classed as minor nonresidential users in Category D. . . . -6- Introduced, considered favorably on first reading, and ordered published this 5th day of November, A.D. 2019, and to be presented for final passage on the 19th day of November, A.D. 2019. __________________________________ Mayor ATTEST: _____________________________ City Clerk Passed and adopted on final reading on this 19th day of November, A.D. 2019. __________________________________ Mayor ATTEST: _____________________________ City Clerk