2017.08.14 Council Agenda Item 08
Summary
Introduction of an amendment to the Code of Ordinances, Article II, Section 18-2, Sewer Systems, to address several matters to support future sewer infrastructure funding and, what staff believes are, housekeeping matters.
A public comment period will not be included with this item.
ACTION: Council action is not anticipated.
Description
Staff has been contemplating changes to the sewer ordinace for some time in order to modernize the ordinance and practice to provide for increased fairness and equity, while also enhancing revenues to support anticipated capital projects. A staff memo is attached which describes the background and recommended amendments. The proposed ordinance language is incorporated into a formal Ordinance Introduction and is also attached. Council action will be required to amend the ordinance to implement an "equity buy-in fee" and establish a new fee schedule based on the relative flow expected from new connections.
The amendment addresses three areas of concern:
- Connection Charges. Connection charges are typically charged for any new or expanded service connection to the system. The proposed amendment will propose to change the current flat fee structure which has been in effect for many years to a fee based on updated undepreciated audit value of the entire system and the anticipated flow from the proposed new or expanded use.
- Exemption from Connection Charges. The ordinance currently exempts a charge for any new use if the developer extends sewer and the town accepts the new extension as public sewer. Staff believes the original intent of the exemption was to encourage private investment in public infrastructure to benefit future and current users of the system. However, extensions have been built within new developments where the sewer exclusively serves only the development. It is difficult to label this type of extension as a public benefit when it only serves the new development area. This amendment addresses how the exemption should be handled in the future.
- Multiplex and Apartment Sewer Fees. The current sewer fee schedule lists both apartment and multi-plex. Neither is defined in the ordinance. The established fee for an apartment is equivalent to a house, $2000. The fee for a multiplex is derived from either the frontage or area of the lot. Staff is not aware of any historic use of the multiplex rate. Staff is recommending an "equity buy-in fee" as a replacement of the connection fee as well as a new associated fee schedule based on the comparative size of new connections.
Attachments:
- Staff Memo, August 10, 2017
- Introduction Letter
