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File #: ORD 2019-030    Version: Name:
Type: Ordinance Status: Passed
File created: 8/15/2019 In control: Town Council
On agenda: 9/17/2019 Final action: 9/17/2019
Title: Ordinance Amending Titles 3, 4 and 13 of the Castle Rock Municipal Code by Changing Stormwater Development Impact Fees, Renewable Water Resource Fees, Water System Development Fees, Meter Set Fees, and Rates for Bulk Water and Wastewater; and Making Certain Editorial Updates to Such Titles (Second Reading - Approved on First Reading on September 3, 2019 by a vote of 7-0)
Attachments: 1. Staff Report 9-17-19, 2. Attachment A: Ordinance Second Reading, 3. Attachment B: Volume 1 (Rates) FINAL, 4. Attachment C: Volume 2 (SDFs) FINAL, 5. Staff Report (First Reading), 6. Attachment A: Ordinance First Reading, 7. Attachment B: Volume 1 (Rates) Draft, 8. Attachment C: Volume 2 (SDF's) Draft, 9. Presentation - 2nd Reading

To:                     Honorable Mayor and Members of Town Council

 

From:                     Mark Marlowe, P.E., Director of Castle Rock Water

                     Anne Glassman, Business Solutions Manager

 

Title

Ordinance Amending Titles 3, 4 and 13 of the Castle Rock Municipal Code by Changing Stormwater Development Impact Fees, Renewable Water Resource Fees, Water System Development Fees, Meter Set Fees, and Rates for Bulk Water and Wastewater; and Making Certain Editorial Updates to Such Titles (Second Reading - Approved on First Reading on September 3, 2019 by a vote of 7-0)

Body

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Executive Summary

 

The purpose of this memorandum is to request Town Council approval of an ordinance (Attachment A) amending Titles 3, 4 and 13 of the Castle Rock Municipal Code by changing stormwater development impact fees, renewable water resource fees, water system development fees, meter set fees, and rates for bulk water and wastewater; and making certain editorial updates to such titles.  

                     

The Ordinance was developed from the staff recommendations presented to Council at the August 20, 2019 and September 3, 2019 Council meetings.  Recommended changes to the rates and fees for 2020 provide great news for our existing customers, with an overall decrease being recommended which will result in approximately a 0.9% decrease for the typical customer on an annual basis.  The specific changes include:

 

Water Fund

1.                     Fixed Monthly Charge - 0% Increase

2.                     Volumetric Rates - 0% Increase

3.                     System Development Fee - 3.0% Increase

 

Water Resources Fund

1.                     Fixed Monthly Charge - 0% Increase

2.                     System Development Fee - 3.5% Increase

 

Stormwater Fund

1.                     Fixed Monthly Charge - 0% Increase

2.                     Development Impact Fee - 3.0% Increase Plum Creek Basin and 3.0% 

       Increase Cherry Creek Basin

 

Wastewater Fund

1.                     Fixed Monthly Charge - 3% Decrease

2.                     Volumetric Rate - 3% Decrease

3.                     System Development Fee - No change

 

 

Additional recommended changes to rates and fees include approximately one percent decreases in meter set fees, two additions to the special charges ($200 water line connection fee and $35 landscape, soil and irrigation system inspection fee), an update to the Bulk Water Station rate to ensure it is 125 percent of the outdoor irrigation rate as previously approved by Council, and increasing the Bulk Hydrant rate to equal the outdoor irrigation rate.

 

As a part of the rates and fees recommendations, staff is recommending Castle Rock Water issue approximately $10M in debt in the Stormwater Enterprise to allow for capital to build critical legacy projects over the coming five-year period.  Without this working capital, these critical stormwater projects would have to be put off well into the future and stormwater rates increased slowly over time to raise funds to build these projects.  

 

In order to develop the recommended changes to rates and fees for 2020, Staff completed the 2019 Annual Rates and Fees Study (Attachments B & C).  The annual study is critical to ensure Castle Rock Water fully re-evaluates the cost of service and updates the financial plans so that revenue requirements and resulting rates and fees are based on the best available current information going into the future. 

 

The attached Staff Report provides details on the rates and fees study and the development of the staff recommendations.

 

History of Past Town Council, Boards & Commissions, or Other Discussions

 

On November 23, 2010 with its adoption of the 2011-2015 Rates and Fees, Town Council requested annual updates each year thereafter, with Castle Rock Water Commission participation and Town Council adoption of endorsed recommendations. Starting monthly in September 2018 various aspects of the 2019 Study have been presented to the Castle Rock Water Commission.

 

On July 24, 2019, staff presented the “2019 Study” at the Castle Rock Water Commission meeting and further discussions regarding the “2019 Study” commenced with commission on August 28, 2019. Castle Rock Water looked to get a recommendation for approval of the proposed updates to rates and fees from commission during the August 28, 2019 meeting.

 

On August 20, 2019 staff presented the 2019 study and proposed changes to Town Council. Town Council directed staff to prepare municipal ordinance changes in accordance with the staff recommendations for first reading on September 3, 2019.

 

On August 28, 2019 the Castle Rock Water Commission voted unanimously to recommend Town Council approval of the proposed changes to rates and fees, as recommended by staff.

 

On September 3, 2019 staff presented the 2019 study and proposed changes to Town Council for first reading. Town Council approved these changes with a vote of 7-0, and directed staff to bring this back for second reading on September 17, 2019.

 

Proposed Motion

 

“I move to approve the Ordinance as introduced by title, on second reading.”

 

Attachments

 

Staff Report

Attachment A:                     Ordinance Second Reading

Attachment B:                     Volume 1 (Rates) Final

Attachment C:                     Volume 2 (System Development Fees) Final