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HomeMy WebLinkAboutA002 - Council Action Form dated September 22, 2009 ITEM #: 28 DATE: 09-22-09 COUNCIL ACTION FORM SUBJECT: RURAL WATER ORDINANCE BACKGROUND: State law requires Iowa's cities to provide City water service within two miles of the City limits in certain limited situations. Where a rural water agency previously has given a City notice of intent to provide service in that area but the City has responded by reserving right to provide water in that area, the City must provide service within four years of receipt of the water district's notice. Several property owners in areas previously reserved for City water service have requested that the City extend water service to their properties. In order to provide this rural water service, the Ames Municipal Code must be modified to establish connection fees and ongoing water rates, as well as to adopt metering and cross-connection control provisions. On July 14, 2009, Council received an overview of this need, along with options and recommendations for addressing these issues. Council then directed staff to prepare needed appropriate ordinance language for public hearing and Council consideration. The amended code language is attached with altered sections highlighted. Key elements include the following: • Rural Water Connection Fees — Rural water customers will pay the same one- time connection fee paid by property owners within the corporate limits. As shown in Appendix F of the Municipal Code, that fee currently is set at a one-time connection fee of $18 per lineal foot of frontage, with a minimum of $650 per lot. This fee would apply to rural customers who can be served by an existing City water main located adjacent to their property. This charge could be set at the connection fee rate in effect at the time of the initial petition, or else at the connection fee in effect at the time the connection is actually made. Based upon the need to avoid any possible subsidy of rural customers by City customers, staff has included ordinance language that sets the connection fee at the rate in effect at the time the connection is actually made. For rural households that do not have a City water main in front of their property, the connection fee will be for the rural customer to pay the entire actual cost for design and installation of a small, temporary water line. When a permanent main is later extended to the area (typically after annexation), the rural customer will then pay the standard connection fee shown in Appendix F. 1 • Rural Water Rates — Rural water customers will have a rate structure that mirrors that used for irrigation accounts inside the corporate limits, with the minimum bill and the unit rates being charged at 1.15 times (or, an additional 15%) that being charged to customers within the corporate limits. The rural water rate will have a seasonally inclined block structure, with a flat rate in the winter and a rate that increases with increasing consumption in the summer. Additionally, rural water customers will be subject to the restrictions and surcharge rates contained in the water rationing ordinance, with the rural surcharge rates being 1 .15 times that charged to customers within the corporate limits. • Adoption of Metering and Back-flow Protection Requirements and Fees — In order to properly bill for water received, the Code will be amended to provide for appropriate metering of rural water customers' usage. For the protection of the public water supply, rural water customers will be required to install an approved back-flow prevention device to prevent back-siphonage from occurring from the customer's premises into the public water system. That device must then be tested annually to ensure that it continues to provide its intended purpose. ALTERNATIVES: 1 . Adopt the proposed ordinance amendments establishing fees, rates and requirements for rural water customers. 2. Do not adopt the proposed ordinance amendments. 3. Direct staff to modify the attached ordinance. MANAGER'S RECOMMENDED ACTION: The City has a legal obligation to provide water service outside the City limits under the limited conditions described above. The attached ordinance changes provide rural water connection fees, rural water rates, and metering and back-flow prevention requirements to protect the public water supply. Therefore, it is the recommendation of the City Manager that the Council adopt Alternative #1, thereby adopting the proposed ordinance amendments establishing fees, rates and requirements for rural water customers. While this ordinance will apply to all future rural water customers, it should be noted that one individual has been anxiously waiting for several years for the City to adopt these standards and fees. Effective in July 2009, the City raised the connection fee rate from $10 to $18 per lineal foot. Out of a sense of fairness in this one individual case, Council may wish to allow this individual to connect at the rate of $10 per lineal foot. 2 v 2725 South Riverside Drive Ames, Iowa 50010 September 18, 2009 The Honorable Mayor and City Council Members City of Ames 515 Clark Avenue Ames, Iowa 50010 RE: Rural Water Ordinance Dear Mayor and City Council: I respectfully request that the rules governing the adoption of an ordinance be suspended and the ordinance above-referenced be approved at your meeting scheduled for September 22, 2009. This request is being made for the following reasons: 1. Seven years have passed since I first made application to receive water service from Xenia Rural Water System. That application was subsequently denied due to the City of Ames not allowing Xenia to service my property. 2. I have received bids for installation of service from the water main into my house. If the ordinance is not adopted before late October, the work could not be performed until early November. There then would be the possibility of the ground freezing and the installation not being made until spring. If that occurs, the bids that I have already received will likely no longer be valid and the price likely will increase, causing me further hardship. 3. I feel that, because I should have been able to hook on three years ago, the $10/foot for connection, which I was told would be the price (instead of 18), would be the more appropriate and fair fee. Also, if weather does not permit hooking up, the price should remain the same until installation is possible. Sincerel ---- John Forth