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HomeMy WebLinkAboutMemo - Read Before Packet - 10/25/2022 - Powerpoint Presentation For City Council Adjourned Meeting - October 25, 2022 - Water Supply - Ordinance Amending Chapter 26 Of The Code Of The City Of Fort CollinsOrdinance Amending Chapter 26 of the Code of the City of Fort Collins: 10-25-22 Addressing Unexpected Challenges to Nonresidential Redevelopment Customers from Ordinance 119, 2021 Jason Graham, Executive Director of Water 2Definitions 1.Water Supply Requirement –Water-related development impact fee that covers the costs of additional demand. 1.Includes both the cost of future infrastructure and water rights and buying into the existing system, including existing infrastructure and water rights. 2.Ensures adequate water supply for future customers and development paying its own way. 2.Annual Allotment Assignment – 1.Goal is to provide a measure for customers to know the appropriate amount of efficient water use for their business. 2.Provides a basis for the Water Utility to plan for water supply and infrastructure (e.g. storage) needs. 3Purpose Utilities Staff seeks City Council Approval to amend City Code 26-41, 26-147, and 26-149 regarding redevelopment and the Water Supply Requirements (WSR). Summary of Requested Amendments related to Nonresidential Redevelopment •Remove “change in use” definition as it relates to City Code Chapter 26. •Language replacement of “change in use” with “replacing an existing meter or service with a larger size” as the regulatory trigger to being required to satisfy the WSR prior to being granted a water service permit, which also results in the imposition of an annual allotment if none previous was assigned. •Clarification of the amount of WSR credit to be given for taps larger than 3”. 4Unexpected Challenges from Ordinance 119, 2021 •Greatly broadened when WSR must be met by nonresidential redevelopment customers to include all scenarios where a customer is in any development review process under the Land Use Code, regardless of actual change in water infrastructure. •Resulted in unexpected challenges and complexities resulting in some businesses being required to pay large fees, even with small redevelopment projects. •Increased staff time to evaluate the number of customers going through redevelopment. •Difficult for staff to justify to business community. •Created permit delays and other obstacles to completing projects. 5Next Steps •Continued evaluation of Water Supply Requirements (WSR) and assigning annual allotments is needed. •Understand impacts. •Evaluation to include businesses without an assigned annual allotment. •Engage existing businesses and the building community to understand challenges to reach an acceptable path forward. •Communication of need to achieve shared understanding and acceptance. •Water Resiliency, Rate Stabilization, Water Conservation 6Recommendation and Next steps •Approve first reading of Ordinance ____ •Second reading of Ordinance ____ at November 1st, 2022 Council meeting. QUESTIONS?