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HomeMy WebLinkAboutItem G(13) Reuse Water Service Conection Charges and "Readiness to Serve" Fee Center of Good Liv. S AGENDA ITEM COVER SHEET Meeting Date: October 19, 2004 Item # 13 Reviewed By: Contact Name: David Wheeler Department Director: Contact Number: 407-905-3100, ext. 1505 City Manager: Subject: Reuse Water Service Connection Charges and "Readiness to Serve" Fee Background Summary: The City Code requires that all developers install reuse mains including service lines to the individual lots within development as part of the infrastructure for that development. Mainstream Properties, Inc., the developer of the Forest Ridge Subdivision, constructed the reuse infrastructure in accordance with the approved plans and that infrastructure has been accepted by the City. Each of these lots has been billed a "Readiness to Serve" fee for reuse water, plus taxes, for this installed connection. To date only six home owners have installed an irrigation system and are using potable water for irrigation and paying for this service. The developer and some of the other residents do not feel that they should be paying this "Readiness to Serve" fee if they are not using the connection. Issue: The developer of the Forest Ridge subdivision and residents question the billing of the "Readiness to Serve" fee for reuse if they do not activate the connection. The developer also questions the charging for the reuse connection and meter installation if the homeowner does not activate the connection. Recommendations The Public Utilities-Engineering staff recommends that the City Commission consider exempting homeowners for the payment of the reclaimed water"Readiness to Serve" monthly fee until such time as the City charges the reuse distribution system in the development with reuse water. If this position is acceptable to the City Commission, staff will prepare the appropriate changes to the City Codes 173, Water and Sewer, and 174, Reclaimed Water, for approval at a City Commission meeting in November. The Public Utilities-Engineering staff does not recommend that the City Commission exempt the payment of the connection charge for reuse connections or refund any monies paid by the developer to install reuse meters. Attachments: None Financial Impact: The waiver of the monthly "Readiness to Serve" fee plus utility tax for the Forest Ridge subdivision would decrease monthly revenues by $428.40 and yearly revenues by $5,140.80 in the Water and Sewer Fund. The waiver of the "readiness to Serve" fee plus utility tax for the Brookestone subdivision would decrease monthly revenues by an additional $2,529.60 per month or $30,355.25 per year, however the reuse system in Brookestone will be charged with reuse water by mid-year and offset the decrease in monthly revenues. Type of Item: ❑ Public Hearing For Clerk's Dept Use: ❑ Ordinance First Reading ❑ Consent Agenda ❑ Ordinance First Reading 0 Public Hearing ❑ Resolution 0 Regular Agenda ❑ Commission Approval ❑ Discussion &Direction ❑ Original Document/Contract Attached for Execution by City Clerk ❑ Original Document/Contract Held by Department for Execution Reviewed by City Attorney ❑ N/A Reviewed by Finance Dept. =i j ❑ N/A Reviewed by ( ) ❑ N/A Mayor ��eceote of Good z, Commissioners S. Scott Vandergrift Danny Howell,District 1 Scott Anderson, District 2 City Manager _"', Rusty Johnson, District 3 Robert Frank c"— Nancy J. Parker, District 4 STAFF REPORT TO: The Honorable Mayor and City Commissioners FROM: David A. Wheeler, P.E. Director of Public Utilities and City Engineer DATE: October 12, 2004 RE: Forest Ridge Subdivision and Reuse Water Service ISSUE The developer of the Forest Ridge subdivision and various residents question the billing of the "Readiness to Serve" fee for reuse if they do not activate the connection. The developer also questioned the charging for the reuse connection if the homeowner does not activate the connection. BACKGROUND/DISCUSSION The Forest Ridge subdivision was constructed based upon the plan to install bahai sod and not install in-ground sprinkler systems as all other new subdivisions have for the past few years. This development plan was based upon being able to reduce the cost for the lot and constructed house and to provide for lower costing development. The City Code requires that the developer install reuse distribution mains including service lines to the individual lots within development as part of the infrastructure for that development. This is accordance with City Commission direction since 1994. Mainstream Properties, Inc., the developer, constructed the infrastructure in accordance with the approved plans and the development's infrastructure has been accepted by the City. There is no reuse transmission system in the area of the Forest Ridge development to be connected to at this time. The City required that a master jumper from the potable water to the reuse water distribution system be installed to energize the reuse system for operation and maintenance purposes and for those homes that wanted water for irrigation, they would plumb their in-ground irrigation system to the reuse meter. (The reuse meter is set at the opposite property corner due to required separation distances.) There are 57 lots in the Forest Ridge subdivision and two additional lots will be added with the lot split at the end of Basking Ridge Court for the Ridge South properties. This makes a total of 59 lots. Each of these lots were or will be charged a $500 connection cost to install the meters and radio read transmitter and other appropriate hardware. This connection cost for the 59 lots equals $28,500. The developer has requested a refund of the $27,500 he has previously paid for these reuse meters due to the fact that no transmission mains are available to charge the reuse distribution system with reuse water at this time. This is contrary to past practice and the City's efforts to expand residential reuse in the future. If this cost was waived or refunded back to the developer, then the homeowner would be required to pay this cost when they came in to activate the connection. Each of these lots has been billed a "Readiness to Serve" fee for reuse water, plus taxes, for this installed connection. To date only six home owners have installed an in-ground irrigation system and are using potable water for irrigation and paying for this service. The developer and some of the other residents do not feel that they should be paying this"Readiness to Serve" fee if they are not using the connection. Staff has reviewed this issue and recommends the following position: • Connection to the reuse system is required if there is an in-ground irrigation system installed by a property owner in a development with reuse distribution mains. • If a property owner has a potable and a reuse meter and the reuse meter is charged with potable water, then the property owner will only pay the potable water Readiness to Serve charge and there will be no Readiness-to-Serve charge for the reuse meter. • If there is a reuse charged reuse distribution main adjacent to the property, then the property owner must pay the reclaimed water Readiness-to-Serve charge regardless of whether the property is actually connected to the charged reuse distribution main. • All properties must have a potable and reuse meter installed if the development has reuse distribution mains installed. Using the 51 lots that are not using the reuse connection in the Forest Ridge subdivision, the "Readiness to Serve" of$7.64 plus the ten percent utility tax, this equals $428.40 per month or $5,140.80 per year. Using the 301 connections in the Brookestone subdivision, the "Readiness to Serve" of$7.64 plus the ten percent utility tax, this equals $2,529.60 per month or $30,355.25 per year. If this cost were waived this amount of funds would not have a significant effect on the budget; this issue has been reviewed with the Finance Department. The Brookestone subdivision's reuse distribution system will be charged with reuse water by mid-year 2005 and therefore they will be paying in accordance with the reuse rate schedule and offset the decrease in monthly revenues.