HomeMy WebLinkAbout2008 Resolution No. 079•
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RESOLUTION NO . '2.J_
SERIES OF 200 8
A RESOLUTION ESTABLISHING FEE SCHEDULES FOR THE CITY OF ENGLEWOOD
CONCRETE UTILITY .
WHEREAS, the City of Englewood created the Concrete Utility and the Co ncrete Utility
Enterprise Fund by the passage of Ordinance No . 36, Series of 1997 ; and
WHEREAS , the passage of Counci l Bill No . 73 , Seri es of 2008 amended the "User Fee"
section of the Conc rete Utility and Conc rete Enterpri se Fund establishing fees for the Concrete
Utility to be set by Re solution ; and
WHEREAS , participati on in the program is vo luntary as property owners have the option to
"opt-out" of the Concrete Utility and maintain the concrete as required by 11-7-18 EMC and
approximately 96% of the 11 ,290 eligible properties in the City panicipate in the Concrete Utility
Program ; and
WHEREAS, fees forthe Concrete Utility of S0 .078 (7 .8 cents) per square foot of concrete
have not changed since the program inceptio n in 1997; and
WHEREAS, conc ret e prices , alo ng wiLo the costs to administer the Program have escalated
since 1997, the rate increase will allow the Concrete Utility to better address sub-standard
concrete infrastructure; and
WHEREAS, the amount that each propcny pays is based on the amount of concrete adjacent
to their propen y;
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCll., OF THE CITY OF
ENGLEWOOD, COtORADO, THAT:
Section l. The Englewood City Counci l hereby authorizes the Concrete Utility Program Fees
to be set at
$0 .098 (9 .8 cents) per square foot effective January I, 2009
and
$0.123 (12 .3 cents) per square foot effective January I, 2010 .
ADOPTED AND APPROVED this 3rd day of No vemb er, 2008 .
I. Loucrishia A. Elli s, Cit y Clerk fo r ~ity of Englewood , Co l
above is a tru e copy of Re so luti on No . 4 , Series of 2008
, hereby cert ify the •
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COUNCIL COMMUNICATION
Date : Agenda Item : Subject :
No ember 3, 2008 11 c iii Resolution es tablishin g fee for Concrete Utility
Initiated By: Staff Source:
D epartment of Public Works D ave H enderson, Engineering/Capital Projects Administrator
COUNCIL GOAL AND PREVIOUS COUNCIL ACTION
Council approved Ordinance No. 36, Series of 1997, creating th e Concrete Utili ty and Concrete
Utili ty Enterprise Fund.
Council approved Council Bill No. 73, Series of 2008, amending the "User Fee" section of the
Concrete Utility and Concrete Enterprise Fund .
RECOMMENDED ACTION
Staff recommends Council approval of a resolution establishing fees for the Concrete Utility .
BACKGROUND, ANALYSIS, AND ALTERNATIVES IDENTIFIED
Property owners in the City of Englewood are required to maintain concrete adjacent to their
property. Th e Concrete Utility was adopted in 1997 to create a funding me chanism to help ow ners
with their responsibility in the repair of the City's aging concrete infrastructure. Participatio n in the
program is voluntary as owners have the option to "opt-out" of the Concrete Utility and maintain
the concrete as required by Municipal Code Section 11-7-18. Approximately 96% of lhe 11 ,290
eligible properties in the City participate. The City participates in the cos ts for intersection corners,
alley entrances, drainage cross pans , concrete pa vemen t an d alleys, and City owned properties;
additionally, the City pays 70 % of the avenue cos ts .
The Concr~te Utility requires yea r round administration (billings, property realignm ents, concrete
inventory, tra cking new co ncrete installations, phone res,>onse, opt-in and opt-out reques ts, titl e
company responses, and delinquent accounts). Additionally, ad minist ration of the annual
co nstruc tion project for th e Concrete Utility takes approximately 8 mon ths from start to finish (initial
ratings of concrete with pictures, contract quantity dete rminat ion, bidding, construction
adm inistrati on, inspections, contract close out and citizen response during construction). Three
City employees, working fo r the Co ncrete Utility, handl e th e majority of these duties.
The City's concrete infrastructure consists of 7,3 1 S,000 square feet of concrete worth an es timated
co st of $54,000,000. Fees for th e Concrete Utility ha ve not changed si nce the program 's inception
in 1997. The existing fee, as established in 1997, is $0.078 (7 .8 cents) per square foot of concrete.
Each property pa ys based on the amount of concrete adjacent to th eir property. Presentl y, a
property w ith a SO foot frontage, consis tin g of curb/gutter and a 4' wide sidewalk, pays $25.3 5 per
year (ty p icall y billed quarterly w ith th e wa ter bill at $6.34 p er quart er).
Total reve nu es are approxima tely $600,000 ($422 ,000 from owne rs and $178 ,000 fr om th e City 's
Pub lic Impro ve ment Fund). Concre te pri ces, along with th e costs of administering th e program , •
have esca lated sin ce 1997 . Th e amount of co ncrete we are ab le to rem0ve and replace , along wi th
th e e ndin g fund balance, is show n below .
~
2002
2003
2004
2005
2006
2007
2008 (es timat ed)
Square Feet
84,000
72,000
60,000
59 ,000
62 ,000
44,000
51 ,000
Ending Fund Balance
$706,000
$642,000
$533,000
$552 ,000
$461 ,000
$504,000
$325,000
Th e fu nd balance ha s been decre as ed to the minimum req ui red in ord er to maint ain adequate cash
flow for t~e Utili ty. Staff is proposing a 25 % increase for 2009 and ano th er 25% increase fo r 20 10.
TI1is increase wi ll allow the Con crete Utility to better address sub-standard concrete infrastructure.
FINANCIAL IMPACT
A 25% fee in creas e for 2009 wou ld bring the tota l ,,s timated reve nues to $750,000 ($527,500 fro m
owners and $222,500 from the Ci ty's Public lmprmement Fund ). The new rate, effec ti ve January 1,
2009, would be $0.098 (9 .8 ce nts) per square foot of concrete. A property ow ner wit h a typical
property wi th 50 foct frontage , as detailed above, wo uld pa y $31.85 per ye ar, or $7 .96 per qu art~, .
An adci,tiona l 25% fee increase for 2010 wo uld bring the total es timated revenues to $937,501)
($6 59,375 from owners and $278,125 from th e City's Publi c Imp rove ment Fund ). -:-'ne rate,
effec tive Janu ary 1, 20 10, wo uld be $0 .123 ( 12 .3 ce nts) per square foot of con c•ete . Th e typica l
property wi th 50 foot fr ontage woul d pay $39 .8 1 pe r yea r, or $9 .95 per qu art er.
Funds for the City's shar e are programmed in the Public Improve ment Fund .
LIST OF ATTACHMENTS
Reso lut io n
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