HomeMy WebLinkAbout1991-158-11/19/1991-TIME PAYMENT WATER PLANT INVESTMENT FEE WPIF RESOLUTION 91-158
OF THE COUNCIL OF THE CITY OF FORT COLLINS
ADOPTING A POLICY FOR THE TIME PAYMENT
OF THE WATER PLANT INVESTMENT FEE IN
ACCORDANCE WITH SECTION 26-120(a)
OF THE CODE OF THE CITY OF FORT COLLINS
WHEREAS, Section 26-120(a) of the City Code requires that any applicant
desiring to be connected to the City's water utility must pay a water plant
investment fee ("the WPIF") ; and
WHEREAS, Section 26-120(a) of the City Code also requires that the WPIF
must be paid in full at the time the water service connection permit is issued
unless the City Council establishes a policy that allows for the time payment of
the WPIF; and
WHEREAS, the City Council has not previously adopted such a policy under
Section 26-120(a) ; and
WHEREAS, the Council believes that it is in the best interests of the City
to establish such a policy under Section 26-120(a) of the City Code by permitting
the time payment of the WPIF under circumstances where payment in full of the
WPIF creates for the applicant an unreasonable economic hardship and a
significant danger to the health or safety of the applicant or of those persons
occupying the applicant's real property.
NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF FORT COLLINS,
that pursuant to Section 26-120(a) of the City Code, the Council hereby adopts
the following policy with respect to the time payment of the WPIF:
1 . Under circumstances where requiring an applicant for City water
utility service to pay the WPIF in full creates for the applicant an unreasonable
economic hardship and a significant danger to the health or safety of the
applicant or of those persons occupying the applicant's real property, the City
Manager shall permit such an applicant to pay the WPIF over time in accordance
with the provisions of this policy.
2. An "unreasonable economic hardship" shall be deemed to exist under
this policy only if the applicant can establish to the satisfaction of the City
Manager that the applicant is unable to obtain reasonable financing for payment
of the WPIF from private lending institutions.
3. A "significant danger to the health or safety" of the applicant, or
of those persons occupying the applicant's real property, shall be deemed to
exist only if the applicant can establish to the satisfaction of the City Manager
that the continued occupancy of the real property without connection to the
City' s water utility will , in the opinion of the Larimer County Health Department
or in the opinion of any other governmental agency or person qualified to make
such determinations, have a harmful effect upon the health or constitute an
unreasonable threat to the safety of the applicant or of those persons occupying
the applicant's real property.
4. If the City Manager determines that the applicant is eligible under
this policy to pay the WPIF over time, the City Manager shall permit such payment
upon such terms and conditions as the City Manager determines to be in the best
interests of the City, but subject to the following terms, conditions, and
restrictions:
a. No more than Ten Thousand Dollars ($10,000.00) of the WPIF per
connection to the City's water utility shall be paid over time under
this policy.
b. An applicant shall not be permitted a period of longer than five (5)
years in which to pay the WPIF, together with any accrued interest,
for each connection to the City's water utility.
C. The applicant shall pay to the City, in addition to the principal
amount of the WPIF, interest on the financed portion of the WPIF at
the rate of four percent (4%) above the prevailing prime rate of
commercial banks as reported in the Wall Street Journal as
determined by the City's Director of Finance at the time the City
Manager permits the applicant to pay the WPIF over time under this
policy.
d. The amount of the WPIF financed under this policy shall be paid to
the City by the applicant in fully amortized monthly payments of
principal and interest which monthly payments shall be billed to the
applicant in the applicant's monthly utility billing statement
received from the City.
e. Any remaining unpaid balance of the WPIF financed under this policy
shall become immediately due and payable upon the sale or other
transfer of ownership of the applicant's real property to which the
City's water utility has been connected.
f. If the applicant fails to pay any monthly installment of the WPIF,
when due as set forth in the applicant's monthly utility billing
statement, such event shall cause the remaining balance of the WPIF
to become immediately due and payable, at the option of the City.
g. If required by the City Manager, the applicant shall execute and
deliver a promissory note to the City for the amount of the WPIF
financed under this policy containing the terms of payment and also
execute a deed of trust securing the promissory note with the
applicant's real property to which the City's water utility service
is being connected. The promissory note and deed of trust shall be
in a form acceptable to the City Attorney.
5. As permitted by Section 26-125 of the City Code, the amount of the
WPIF financed under this policy shall be collected by the City using the billing
and other collection procedures set forth in Article XII of Chapter 26 of the
Code for the collection of other utility fees and charges, including, but not
limited to, the imposition of a perpetual lien as described in Section 26-718 of
the Code. In addition, the City's water utility service to the applicant may be
terminated pursuant to Section 26-713 of the Code for any default by the
applicant in the payment of the WPIF financed under this policy.
Passed and adopted at a regular meeting of the Council of the City of Fort
Collins held this 19th day of November, A.D. 1991 .
Mayor
ATTEST:
ity Cler