Water Committee Agenda and Packet 2015 09 15

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112 cityof r Louisville COLORADO • SINCE 1878 Memorandum I Department of Public Works To: Water Committee CC: Malcolm Fleming, City Manager From: Kurt Kowar, P.E., Director of Public Works Date: 3/7/13 Re: Multifamily and Landscape Tap Fee Analysis Background The City of Louisville charges a Water Tap Fee under Municipal Code, Section 13.12.040.A.3, that is intended for the growth related capital expansion costs for water resources, water supply, water storage, transmission, treatment and distribution facilities, related costs and factors. The Water Tap Fee is established by and different customer classes are compared to the use of a single - family detached residential home or Single Family Equivalent (SFE). The current SFE or %" sized meter water tap fee is $24,140. The water tap fee was last updated in 2010 and is by code to be reviewed quarterly. A utility rate study currently in the early initiation stages and scheduled for completion in the 4th quarter of 2013 will thoroughly review the tap fee cost components and update existing tap fees as necessary. During the 2011 and 2012 calendar year, inquiries were received from various developers working within the City regarding multifamily tap fees and the cost associated with this type of development within the City. Multifamily tap fees are charged 100% percent ($24,140) for the first unit and then a minimum of 60% ($14,484) for each apartment unit thereafter. In November of 2011 (RMCS) and February of 2012 (Confluence) letters were submitted to City Staff with cost comparisons for multifamily development between Louisville and various other Front Range municipalities. These letters were reviewed by Staff and it was determined that regardless of the cost differences, the letters were not all inclusive in their cost comparisons for various water fee components or had selected municipalities with significantly different cost structures and water resources than Louisville. Neither submission nor associate inquiry was deemed to provide enough due diligence or specific analysis to support a change in the City's tap fee methodology.