City Council Minutes 2013 05 21 - Laserfiche WebLink

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City Council Meeting Minutes May 21, 2013 Page 8 of 19 DWELLING UNITS AND SENIOR INDEPENDENT LIVING UNIT PROJECTS — 2nd Reading — Public Hearing Mayor Muckle requested a City Attorney introduction. City Attorney Light introduced Ordinance No. 1633, Series 2013. Mayor Muckle opened the public hearing and requested a staff presentation. Public Works Director Kowar explained water and sewer tap fees are charged to recover the costs of water rights and infrastructure required to serve new customers of the water and sewer utility. The City staff has reviewed the existing water tap fee table provided to the development community, the existing ordinance, and utility billing data to determine the adequacy of the current system. Staff reviewed the equivalent water usage of multifamily and townhome units to single family residential and determined the current water tap structure does not provide a fee mechanism that recognizes irrigation water taps are separate from building water taps. The review indicated indoor tap fees for multifamily are too low when compared with single family residential tap fees. Historically, multifamily and townhome type units provided for irrigation through building water taps. Multifamily management systems have become more sophisticated, irrigation technology and controls have improved, and developers have proposed a separate irrigation water tap from the building water tap. During the review of landscape water tap usage staff also determined the existing water tap fee table did not provide adequate cost recovery for irrigation -only water taps. Staff discussed the findings with the Water Committee, City Attorney and the City's Utility Rate consultant, Red Oak Consultants and as a result, recommend modifying the existing water tap fee ordinance to reflect the following changes: • Recognition of separate irrigation water tap fees and a flexible structure to adequately charge for the water resource impacts of proposed landscape plans. • Requirement of a separate landscape tap for any townhouse, multifamily dwelling, or senior independent living unit of five or more units to better account for water usage, provide for appropriate rate tiers, and encourage water conservation. • Implement a 15 percent per unit equivalent discount for duplex, townhouse, and multifamily dwelling units to recognize separate irrigation water tap fees. • Increase multifamily dwelling unit sewer tap fees from 60 percent per unit to 80 percent per unit to reflect actual equivalent usages. • Add a clause that provides consideration for a limited time period of a credit or reimbursement to developers who are aware of this review, have moved forward in paying tap fees in good faith, and are caught between construction timelines and legislative process timelines.