HomeMy WebLinkAboutIR 8731INFORMAL REPORT TO CITY COUNCIL MEMBERS
No. 8731
To the Mayor and Members of the City Council November 29, 2005
Page 1 of 3
SUBJECT: WATER AND WASTEWATER INSTALLATION POLICY REVISIONS
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Background
At the November 1, 2005, City Council meeting, Councilmember Burdette requested information regarding
the City's policy for providing water service to undeveloped areas.
Currently, the water and wastewater installation policy requires that all platted lots have a City (or other
water utility) water and wastewater facility extended to it to provide service. In addition, fire protection is
required for all building construction. These requirements apply to the development of one or more lots.
Under the Standard Extension Policy, the "Developer" is responsible for the entire cost of the installation of
water and/or wastewater lines sized to provide service to each proposed lot or tract within the development.
The Policy defines "Developer" as any agent who is subdividing property or who is developing vacant
property. The City can elect to increase the size of the water and/or wastewater lines at the City's cost.
Extension Costs to Existing Businesses and Residences
The Extension Policy has a special provision for single property owners with an existing residential or
mmercial establishment who request City water and/or wastewater service. This provision allows the
City to pay for up to 200 feet of water and wastewater line extensions requested by a single customer. The
customer would have to pay all remaining extension costs.
To prevent having to pay all of the remaining costs, the customer can request other nearby single property
owners with existing residential or commercial establishments who desire water and/or wastewater service
to join in the extension application. In this case each additional single customer would receive a 200 -foot
extension credit, reducing the remaining extension costs and splitting the costs between several property
owners. If enough single customers apply so that the number of 200 -1oot credits exceeds the total length of
the extension, the City will build the water or wastewater line at the City's cost. The customers would only
be responsible for normal tap charges and impact fees. This policy has been used to extend water and
wastewater lines to existing residential areas annexed by the City.
Options to Reimburse Developers for Extension Costs
The Policy provides two methods for developers who fund the construction of a water or wastewater main
to recover a portion of the costs from other property owners who tie on to the main. "Front foot charges"
apply to both water and wastewater extensions. "Per acre charges" currently apply only to wastewater
extensions, but Water Department staff is drafting a corresponding ordinance for water extensions.
ISSUED BY THE CITY MANAGER
FORT WORTH, TEXAS
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Front Foot Charges
The front foot charge assessment is established by ordinance and is currently $8.751LF for water and
$12.251LF for wastewaters, multiplied by the front footage of the property connecting to the approach
main. Front footage is defined as:
1. The length of side where the connection is made for a rectangular lot; or
2. I/Oh the perimeter of the lot for a non-rectangular lot.
The minimum front footage is 100 linear feet. The front foot charges are collected by the City from
customers who tie on to the main for 10 years (20 years upon request if less than 70% of eligible charges
have been collected) and refunded to the developer who originally paid for extension of the main (up to the
amount actually expended) on an annual basis upon request.
Front foot charges are based on the assumption that new development will spur additional development in
the area, thereby reimbursing the original developer much of his initial investment. However, in cases
where much of the surrounding area is already developed, the developer of a small (1 -5 lot) development
might have limited reimbursement potential and would bear, in some cases, the full cost of extension,
because of two factors. First, it is less expensive to extend water and wastewater utilities in an
undeveloped area because lines can be constructed on raw land as roads are being built. Currently, the cost
of an 8-inch water line extension averages approximately $26/ linear foot in an undeveloped area,
compared with $6511inear foot in a developed area, increasing to $12111inear foot when paving repair is
necessary. Second, where utilities are extended to a small undeveloped area surrounded by development,
the pool of contributors of front foot charges to reimburse for the cost of extending the lines is small.
Because the assessment of front foot charges is often insufficient to reimburse a developer for construction
of water or wastewater lines extended to serve a single structure or small development, the Water
Department is investigating methods to reduce or subsidize such construction costs, which are discussed in
the Recommendations section below.
Per Acre Chi arges
As an alternative to front footage reimbursements, a "per acre"' charge can be collected by the City to
reimburse the developer/single customer for wastewater approach mains. The per acre charge is authorized
in accordance with Ordinance No. 15095, approved by City Council on May 14, 2002 (M&C G- 13621 I)
Approach wastewater mains that meet the following requirements are subject to per acre charges:
1, T'lic worste-watc—ir mAin extended is at least I rile ir, lekgdh; and
Ordinance Charge fic-ty Frcmt Fcxx (1-harge, is based on ",/'y 6je average c t of 8-inch water cw wastenwater fines inqalled large,
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ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS
INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 87S I
To the Mayor and Members of the City Council November 29, 2005
`rmT .e Deno '2 of 'Z
SUBJECT: WATER AND WASTEWATER INSTALLATION POLICY REVISIONS
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2. The wastewater basin area served is at least 1,000 acres; and
3. Proposed development is less than, or equal to, 1/3 of the calculated wastewater basin area served
by approach wastewater main.
The `der acre" charges are collected by the City for 10 years and refunded to the Developer upon request
on an annual basis. The City is also eligible for per acre charges and the City has used per acre charges to
assist in redeveloping areas within the City that have no wastewater service. If a per acre charge is
collected, front foot charges do not apply.
It should be noted that at this time there is no corresponding ordinance for water approach mains equivalent
to the per acre charge for wastewater approach mains. Staff' is currently drafting a per MGD (million
gallons per day) charge ordinance to allow for a per MGD assessment for approach water mains that are
16- inches and larger and more than a mile in length. Collections and reimbursements would be similar to
the per acre charge.
M.M.—Recommendations
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Given the negative impact that the current Standard Extension Policy can have on small developers, staff
will explore the following options and bring forward recommended adjustments to the policy for City
Council consideration:
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1. Review the methodology used in calculating the front foot charges for 8" lines and increase the fee
to ensure costs are comparable to current construction costs;
2. Establish an "extension charge" which developers would pay for water or wastewater line
extensions to small developments in lieu of actual construction costs. The extension charge would
be designed to address those situations where collection of front footage charges would be
inadequate for the developer of a small area to recover a reasonable portion of the actual
construction costs. The City would in effect subsidize small developments for the difference
between the extension cost and actual construction costs to extend water and/or wastewater lines;
3. Complete and implement the water per MGD charge, which would serve as the equivalent of the per
acre charge for wastewater.
Should you have any questions in the interim, please contact Frank Crumb, Water Director at 817 -392-
8207.
W haries R. Bos li
City Mang
ISSUED BY THE CITY MANAGER
FORT WORTH, TEXAS