HomeMy WebLinkAboutIR 7098 INFORMAL REPORT jO CITY COUNCIL MEMBERS No. 7098
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To the Mayor and Members of the City Council March 18, 1986 vs
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Subject: PROGRESS REPORT FOR THE WATER AND WASTEWATER
CAPITAL COST RECOVERY ADVISORY COMMITTEE
On August 27, 1985, the Fort Worth City Council appointed an eight-member panel entitled
the Water and Wastewater Capital Cost Recovery Advisory Committee (I.R. No. 7048). In
cooperation with City staff, the Advisory Committee was to develop a system of charges
to address the capital costs of utility expansion and, in so doing, was to assure that (1) capital
recovery fees would be based on cost-of-service principles, (2) the method of developing
the fee and the fee schedule itself would enjoy community support, (3) administrative costs
of the capital recovery fee would be minimized, and (4) the capital recovery fee schedule
would allow the water and wastewater utilities to provide adequate service.
To assist in developing the capital recovery fee schedule and in accomplishing the other
charges given the committee, the City Council approved the execution of a contract (M&C's
C-9123 and C-9165) with an accounting firm, David M. Griffith and Associates, Ltd., (DMG)
in conjunction with CH2M-Hill, Inc., an engineering firm. The task of DMG/CH2M-Hill
has been to develop a schedule of water and wastewater capital recovery fees under the
direction and guidance of City staff and the Advisory Committee.
The Advisory Committee, City staff and DMG/CH2M-Hill consultants have met monthly
(see attached chronology). A preliminary fee schedule based on discussions with the Advisory
Committee and data provided by the Fort Worth Water Department has been recommended
by the consultants. This fee schedule is part of a draft report entitled "Water and Wastewater
Capital Recovery Fee Study," prepared by David M. Griffith and Associates, Ltd., and
CH2M-Hill, Inc.
The Advisory Committee has hosted Public Hearings on October 24, 1985 and March 5, 1986.
Over 350 notices were sent out before the first hearing to developers, builders, engineers,
community groups and customer cities inviting their participation in the hearings; the hearing
was attended by eleven persons. For the second public hearing, nearly 500 notices were
sent out, and these notices contained the capital recovery fee schedule as recommended
by DMG/CH2M-Hill. Over 20 people attended this second public hearing.
At the March 5th public hearing, an attorney representing the Tarrant County Builders,
Association presented an alternative proposal to implement and collect water and wastewater
capital recovery fees using a method not discussed previously by the Committee or
Consultants. To properly evaluate the Builders' Association proposal, additional
cost-of-service analysis must be performed, as well as a close examination of the
administrative costs that would be generated by the plan. The Committee believes that
analysis of this proposal will require approximately 60 more days.
The Advisory Committee plans to meet more frequently during this final stage in order to
resolve the outstanding community issues and analyze the alternate proposal. If progress
is made as anticipated, the Committee should be prepared to make its recommendation
by May 27, 1986.
Harman
Douglas Zf
City Manager
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ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS