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Home My WebLink About2011 Ordinance No. 026ORDINANCE NO 4k. SERIES OF 2011 OY AIITHORITY COUNCIL BILL NO. 28 INTRODUCED BY COUNCIL MEMBER OLSON AN ORDINANCE AUTHORJZNG AN AMENDMENT TO THE 1990 BIG DRY CREEK INTER CE PTOR AGrU1EMENT REGARDING FEES. WlfEREAS , the Dig Dry Cree,: Basin Interceptor is a major trunk line serving the Southgate, South Arapahoe, South Enilcwo xi Sanitation Districts and part of the City of Englewood for sanitary sewer u-:msport ; nnd WHEREAS, the Englewood City Council approved entering the Big Dry Creek Basin l11tcrccptor Agreemen t between Englewood, Southgate Sanitation District, South Arapahoe Sanitati on Dist net :md the So uth Englewood Sanitation District No. I, by the passage of Ordina11ce Nu . 30, Series of 1990, which included "lir.e and adva.1ce tap fees'' for capital conmuction; and WI IEREAS, the Englewood City Cow,cil authorized the passage of a Resolution in 2004, establi ,·hing repair , maintenance and rehabilitation fees ior Big Dry Creek Basin Interceptor; and WHEREAS, the Englewood City Council approved an amendment to the 1990 Big Dry Creek Interceptor A~recment pcnaining to those maintenance iees, by the passage of Ordinance No. 26 , Series of 2007; and WHEREAS, the Englewood City Council authorized an Amendment to the 1990 l:lig Ory Creek Interceptor Agreement regarding fees, by the passage o:"Ordinance No. 13 Series of2009; and WHEREAS , aner the completion of three capital project s, Southgate Sanitation District reassessed the co ndition of the interceptor and determined that the interceptor has capacity ndcqun1c to meet the existing and future demands w1d that no hirther capital projects are ncede<l so that Southgate tcnninatcd the Advanced Tap Fee collection for capital projects and disbursed the unused tap fee capital revenues to the participating districl!-; and WHEREAS, under the 1990 Agreement , the original finan cial arran~ements to fund the repair , maintenance and rehabilitation program provided for scheduled periodic increases; the next increase is to be effective for '.:1e 20 I 1 billing period when the per lho11,sand gallon charge wi ll increase from $0 .159123 per 1,000 gallons of winter water consumption to $0 .189861 per 1,000 gallons of winter water consumption; and WHEREAS, the Englewood Water and Sewer !loard recommended approval of the 13ig Dry Creek Interceptor mainten ance fee increase 10 $0. 189861 per thousand gallons at its February 9, 201 I meeting; NOW, THEREFORF., RE ITORJ)AlNF:D BY THE CITY CO UNCIL OF THE CITY OF ENGLEWOOD, COLORADO, AS l'OLI-OWS : Section J. The City Council of the City of Engl ewood, Colorado hereby authorizes amending th e I 1)90 Big Ory Creek Basin l.nh•;1..cp tu 1 Ab1·ccmc11t by ,,cccpling the scheduled periodic financial incrc:!sc of S0 .I8986 1 per 1,0(10 gallo:1s uf wi11l ::r wt11cr co11su111p1i,111 . Introduced, read in liill, and passed on first reading on the 2nd day of May, 20 11. J>ublisherl by Ti1 ;e as a Oill for an Ordinance in the Ci1y's official newspap er on the 6th cay of Mcy,?.011. Published as:, Rill for an Ordinance on the City's offici•I wehsilc neginning on the 4th day of May, 20 11 for thirty (30 ) days, Read hy tille and passed (Ill finul rcauu,g on the 16'' day of May, 201 I, Published by title in the Cily's official newspape r ,s Ordin,rnee No&, Serie s of 20 l I , on the 20th day of May, 201 1. Published hy titl e on lhe Cit ; 's omcial wcbsile beginning on the 18th day of May, 2011 fnr th ,rty (JOi days , !, Loucrishia A Elli s, C:ity Clerk of the City of Englewood, Col0rado, herehy cer.ify that the above and foregoing is ~ ~rue cop}' of the Ordinance passcci on final reading and published by tit le as Ordinance No.~ Series of20J L /,~Au;Jitv V-Loucrishia A. Ellis COUNCIL COMMUNICII.TION Date: May 2, 2011 Initialed By : I ~~enda Item: 11 a i Utilities DepMtmenl I Subject: Big Dry Cre ek Interceptor Finan ces I Staff Source: Stewart H . Fonda, Director of Utilities COUNCIL GOAL ANO PREVIOUS COUNCIL ACTION Big Dry Creel·. Bas in Interceptor Agreement between th e City o f Englewood, Southgate Sanilation Dis•,;c~ So .. th Arapahoe Sanitation District and the Scuth Englewood Sanitation D istrict No. 1 was •Pf ,ved by Council as Ordinance No. 30, Series 1990. A resolution was passed October 18, 2004 establishing maintenance fee, for Big Dry Creek Basin Interceptor. Council approved an Ordinance on March 19, 2008 for th e maintena nce fee of $0 .108406 per thousand gallons for the Big Dry Creek Interceptor. The Englewood Water and Se wer Bo ar d, at their lanuary 13, 2C09 meeting, recommended Council approval, by Ordinance, of a Big Dry Creek interceptor maintenance fee increase to $0 .159123 per ti ;a nd 1:allons. RECOMMENDED ACTION The Englewood Water an d Sewer Bo ar d, at their Febru ary 9, 2011 meeting, recommended that Council adopt a bill for an ordinance appro\'ing a Rig Dry Creek Interceptor maintenance fee increase to $0 .189861 per th ousa nd gallons . BACK(.;KOUND, ANALYSIS, AND ALTERNATIVES IDENTIFIED TI1 e Big Dry Creek Basin Interce ptor is a rna ,or trunk line serving the Southgate, ~outh A,·ar,ahoe, Greenwood Village, Soutl1 Englewood San itation Districts and part of th e City of Englewcod for sanitary sewer tra nsport. The interceptor begins at Clarkson and Orchard, runs northwesterly along Big Dry Creek to Santa Fe Drive, and th en north to the Littleton/Engl ewood Wastewater Tr eatment Plant. Originally, Englewood ownec the interceptor from MansO eld Avenue to the Plant. Before the Basin Interceptor Agreement Engl ewood was solely res ponsible for th is interceptor pipe from M ansfield lo th e WasteWater Treatment Plant , even though Southgate, South Arapahoe, South Englewood, Greenwood Village Sanitation Districts were connected to it. In 1990 the City of Englewood entered into the Interceptor Basin Agreement (IRA) with the conn ected sanitation districts , and with the agreement in pIace, Englewood still owns the interceptor, but all connected districts ,hare responsibility for the repairs, mai11tenan ce and replacement of the line. At the time of the original acreement, eight capital const ruc:Iin n projP.r.ts w f :-e ant icipated . Line ar.d ;i rl\i ;:mcP rl tap tees for capital construction . along with ;i s1nall c:,arge fo r re ?air and mainl ena ncQ . were established. After c ompletion of three ca1>i ta l projects, Southgate Sa nitation District r eassessed t he condition of the interceptor and determined tliat ii had capacity adeq uate to meet the ex is ting and future demandi ·nd that no further capital proIects were needed. Under the 1 Y9ll Agreement, fund111g was established lo pro ceed with a repair, mainter,a nce a:id rehabilitation program. An on-going preventative maintenance pro gram is imperative for an efficiently operating i1,terceptor line. FINANCIAL IMPACT The original financial arrangement scheduled periodic increases; the next one is to be effective for the 201 I billing period. The per thousand gallon charge will increase from $0.159123 to $0.189661. The typi ca l reside ntial customer will sec their bill go irom $13 .18 per year to approximately $16.00 per year. LIST OF ATTACHMENTS Lett er from Sou thgat e Excerpt from February 9, 2011 Water and Sew r Board Minutes Bill for an Ordinance ~ Southgate Water & Sanitation Dist1 · .. ,~;;,;5 _______ _ 3 722 Eas t Orchard Road Ccntcnnial, Colorado 80121 T•lcphonc (303) 779-0261 FAX (303) 779 -02'10 Mr . Stu Fonda City of Englewood 1000 Englewood Parkway Englewood, CO 80110 Re: Big Dry Creek Interceptor Agreement Dear Stu: September 1, 2010 In 2006 we implemented a restructuring of the financing for the Big Dry Creek Interceptor. On the basis of a twenty five year projection of rehabilitation needs the annual BIA Line Charge was increased (effective 2007) to S0 .108406 per' 100 gallons of winter water consumption and (effective 2009) to $0.159123 per 1,0C'l ~allons of winter water consumption . That finance restructuring scheduled periodic increases in the BIA Line Charge. It is time to implement the increase effective for 2011. Please adjust the BIA Line Charge to $0.189861 per 1,000 gallons of winter water consumption . For your convenience I have attacned a copy of the 12/28/06 BIA financing spread sheet. Y.ur Tr~ly, ~ {/ ~ . . Dule Tinsley District Manager WATER AND SEWER BOARD MINUTES February 9, 2011 The meeting was called to order at 5:1 0 p.m . Members present : Members absent : Also present: Cassidy, Wiggins, Woodward , Habenicht , McCaslin, Olson , Higday, Clark , Bums Stewan Fonda, Director of Utilities Dwayne Tinsley, Southi,ate Sanitation District Excerpt from Puge 2 of the February 9, 2011 Water and Sewer Board Minutes 2. GUEST: OWA YNE TINSLEY -SOUTHGATE SANJTA TION DISTRICT . Mr. Tir.,ley distributed a history of the Big Dry Creek Interceptor and a map of projects and f:ow they were prioritized . The Big Ory Creek Basin Interce ptor is a major trunk line serving the Southgate, South Arapahoe , Greenwood Village, South Englewood Sanitation District and pan of the City of Englewood for sanitary sewer transport . In 1990 the City of Englewood entered into the Interceptor Basin Agreement with the co1u1ccted sanitation dislr icts. Englewood still owns the interceptor north of Mansfield, but all the connected districts share responsibility for the repairs, maintenance and replacement of the line . Mr. Tinsley reviewed tht restructured !"1nancing for the Big Dry Creek Interceptor implemented in 2006 . The restructuring scheduleo pe ri0dic increases in the Big Dry Creek Interceptor Agreement line ch arge . Mr . Tinsley discussed the propo sed line charge which will incre ase the rote from SO.I 59123 to $0 .189861 per 1,000 gal:ons of winter water consumption . This will average ou t to approximately )3 .00 per hou :,e ho ld, per year. tvlr. Wi ~g ins moved ; Mr. H•bcni cht sec onded : Ayes : Nays : Absent: Motion carried . To recommend Council approval , by Ordinance , of a Big Dry Creek Interceptor maintenance fee increase to $0 .189861 per thousand gallons . Cassidy, Wiggins , Woodward , Habenicht, McCaslin None Olson , Higday, Clar k, Bums