TC Res. No. 2009-26 AMENDING AVON MUNCIPAL CODE, TITLE 13,TOWN OF AVON
RESOLUTION NO. 09-26
Series of 2009
A RESOLUTION AMENDING AVON MUNCIPAL CODE, TITLE 13,
APPENDIX 13 -A, WATER RATE SCHEDULE/TAP FEE SCHEDULE
WHEREAS, the Town Council of the Town of Avon finds that the adequate maintenance and
acquisition of water rights is essential to the Town's ability to serve all development in the Avon
community with water;
WHEREAS, the Town of Avon Comprehensive Plan states as Goal J. 2: "Ensure cost effective
provision and development of public facilities and services." and states as Policy J.2.4. "Analyze
the net costs of various types of growth and development including long term service provisions
and secondary impacts."
WHEREAS, Town Council finds, based on Town Staff analysis and other available information,
that actual development in the Town of Avon is resulting in the consumption and usage of single
family equivalent water rights in excess of original projections and estimates;
WHEREAS, the Town Council finds that the policy of the Town of Avon and the State of
Colorado is require new growth to pay its own way and to not burden existing residents and
property owners with the costs of new growth;
WHEREAS, the Town of Avon wishes to add a surcharge to its water tap fee schedule for
additional revenue for providing adequate water rights to future development;
WHEREAS, Avon Municipal Code section 13.01.060 allows for amendment of Appendix 13 -A
by resolution;
WHEREAS, the Town Council finds that the adoption of this Resolution with promote the
health, safety and general welfare of the Avon community;
NOW, THEREFORE BE IT RESOLVED BY THE TOWN COUNCIL OF THE TOWN
OF AVON, that Avon Municipal Code, Title 13, Appendix 13 -A is hereby amended as attached
on Exhibit A to this Resolution.
ADOPTED THIS 8" DAY OF SEPTEMBER, 2009.
TO COUNCIL
WN OFQAVON, COL RADO
Ronald C. Wolfe, Mayor
att Mc
enny, T n Cl rk
Appendix 13 -A
Water Rate Schedule/Tap Fee Schedule
Classification
Residential Unit.
a) Base Tap Fee
Any living unit with a kitchen; a kitchen being defined as including but
limited to, hot and cold water, stove and /or microwave, sink and
refrigerator. Examples: residential condominiums, townhouses,
apartments, duplexes, triplexes, lock -off apartments, etc. Any commercial
business and/or facilities in a residential condominium complex must be
metered by a separate master meter separate from the residential units.
b) Oversized Unit Surcharge
A surcharge will be collected from all residential units in Avon, excluding
those within Mountain Star subdivision, exceeding 3,000 sq. ft. in size. A
surcharge will be collected from residential units in Mountain Star
exceeding 7,500 square feet. Where zoning designates a specific number
of residential units for a lot, the property owner may apply those designated
residential units towards the Oversized Unit Surcharge provided that the
total development of the lot does not exceed the number of SFE's
designated for the lot.
2. Hotel/ Lodge /Motel /Lock- Off /Accommodation Unit.
Efficiency Room: a single room with a bathroom and a kitchen; a kitchen
being defined as including, but not limited to, hot and cold water, stove
and /or microwave, sink and refrigerator.
Rooms (with or without a bathroom, but without a kitchen) with private
access to a central corridor or the outside.
Rate
$4,000.00 per unit up to 3,000
sq. ft., plus $2.00 per sq. ft.,
thereafter; plus $2.00 per sq.
ft. for private swimming pool
An additional $1.40 per sq. ft.
over 3,000 sq. ft. (over 7,500
sq. ft. for Mountain Star)
$2,000.00 per efficiency room
$1,400.00 per room
Restaurants, bars, stores, offices and accessory areas (such as lobbies,
mechanical rooms, convention centers, ballrooms, auxiliary dining rooms,
guest recreational facilities) in a hotel /lodge must be metered by a separate
master meter so that these uses can be assessed a tap fee and usage fee
separate from the hotel/ lodge /motel /lock -off /accommodation units. (minimum $6,000.00)
Commercial, Industrial and Irrigation.
(These uses must be metered on a separate master meter so that these uses can be assessed a tap fee and usage
fee separate from the residential, hotel, lodge, motel, lock -off, and accommodation units.) All commercial,
industrial, and mixed -use projects must obtain a determination of water allocation dedicated for the property to
be developed prior to submittal of any plans for the property. The Town Engineer will then determine the
adequacy of the existing water allocation and determine the appropriate surcharge for new development or
additions, up to $4,200 per SFE.
Service Line Size
SFE
Rate
3/4 inch
1.50
$ 6,000.00
1 inch
2.60
10,400.00
1' /2 inch
5.80
23,200.00
2 inch
10.30
41,200.00
3 inch
23.00
92,000.00
4 inch 40.90 163,000.00
6 inch 92.10 368,000.00
4, Water Meter.
Meter sizes for all applications shall be determined by the Eagle River Water and Sanitation District (District).
The appropriate water meter shall be purchased from the District for new structures. Once installation of the
meter has occurred, the District shall inspect the installation for compliance with District rules prior to water turn
on.
5. Service Charges.
Refer to rates in current
Schedule of Fees and
Charges, Appendix A, Eagle
River Water and Sanitation
District/Upper Eagle Regional
Water Authority Rules and
Regulations
Single- family equivalents:
Single - family equivalents (SFEs) shall be assigned as follows for the determination of base service charges:
Residential unit to 3,000 per sq. ft.
Residential unit over 3,000 sq. ft:
(actual sq. ft.) x 1 SFE _
(3,000 sq. ft.)
Hotel /lodge /motel /lock - off /accommodation unit:
Efficiency room
Rooms
Commercial, industrial and irrigation:
Service Line Size
'/4 inch
1 inch
P/z inch
2 inch
3 inch
4 inch
6 inch
SFE /unit
1 SFE /unit
0.50 SFE /efficiency room
0.35 SFE /room
SFE
1.50
2.60
5.80
10.30
23.00
40.90
92.10
Base service charges for existing accounts with assigned SFEs varying from this schedule shall be adjusted over a
three -year period. One -third of the difference between the assigned SFEs and the reviewed SFEs shall be added
to the SFE schedule for base service charges effective with the January billing of each year until the assigned SFE
schedule is current.
6. Fire Hydrant Meters.
Fire hydrant meter use is allowed between April 15 and October 15, provided freezing at night is not occurring.
The customer is responsible for any damage to fire hydrants or fire hydrant meters, which includes vandalism or
freezing. Rates for Fire Hydrant Meter use can be found in Appendix A, Schedule of Fees and Charges, Eagle
River Water and Sanitation District Rules and Regulations.
7. Mixed -Use
The SFE's for mixed -use developments shall be determined by using the aggregate of the required SFE's
calculated for each of the various uses described above.
Memo
To: Honorable Mayor and Town Council
Thru: Larry Brooks, Town Manager
From: Justin Hildreth, P.E., Town EngineerIA
Jeffrey Schneider, P.E., Project Engineer
Date: September 2, 2009, 2009
Re: Resolution 09 -26, Series of 2009, A Resolution Amending the Avon Municipal
Code Appendix 13 -A, Water Rate Schedule/Tap Fee Schedule
Summary: In 2005, the Town of Avon renegotiated the lease agreement for the administration of all
Avon water rights with the Upper Eagle Regional Water Authority (UERWA). The lease was further
amended in 2009 to include the Riverfront Subdivision. The scope of the lease agreement includes
all areas previously served by Avon Metropolitan District water service, generally consisting of the
Town of Avon boundaries and excluding the Eaglebend Subdivision, Gates and Folson parcels, and
the Village at Avon. As a result of the lease and subsequent amendments, a total of 5,239.55
(Single Family Equivalents) SFEs of water are allocated to the Town's supply. SFEs are the unit of
water allocation for approximately one family in one dwelling unit. During lease negotiations, it was
determined that the Town could supply water to new developments up to the maximum underlying
zoning, as well as redevelopment up to existing zoning.
Since then, Town Staff has required all large developments involving upzoning to provide additional
water rights above those provided by Avon under existing zoning, the most recent example being the
Riverfront Subdivision. Providing adequate and acceptable water rights is a condition of final plat
approval per Avon Municipal Code Section 16.24.140 (7). Mandating that larger development bring
additional water rights currently does not address the additional usage of water which occurs from
residential units over 3,000 square feet.
The water allocation (SFEs) allocated for a given dwelling unit assume a maximum size of 3,000
square feet. A recent trend in residential construction is to build larger units that require more water
than previously contemplated and estimated during water demand calculations. This memorandum
is to present Resolution 09 -26, Series of 2009, A Resolution Amending Avon Municipal Code, Title
13, Appendix 13 -A, Water Rate Schedule/Tap Fee Schedule. The resolution is attached as
Attachment A. The tap fee schedule amendment will create a surcharge for over -sized residential
units and will increase the commercial tap fees so that a dedicated revenue stream can be realized
for the town for the acquisition and maintenance of additional future water rights.
Previous Council Action: The Avon Town Council approved the Supplemental Water Lease with
the Upper Eagle Regional Water Authority at the July 14, 2005 regular meeting. The lease was
further supplemented with water provided by the Riverfront Subdivision and was approved at the
July 14, 2009 council meeting. Copies of the Supplemental Water Leases are attached as Exhibit A.
An introduction to this topic was provided at the April 8, 2008 meeting. This topic was presented to
Town Council at the August 25, 2009 meeting.
Background:
Single Family Equivalents, or SFEs, are the measurement of water consumption and allocation used
by the Town of Avon and the UERWA. One SFE is equal to any residential living unit with a kitchen,
whether it is a single- family home, townhome, condominium, or apartment, provided that the unit is
below 3,000 square feet and contains kitchen facilities. Additional square footage is calculated as
pro -rated additional SFEs. An accommodation unit with an efficiency kitchen is counted as 0.5
SFEs, and a hotel room without any cooking facilities includes 0.35 SFEs. Commercial properties
Resolution 09-26, Series of 2009, A Resolution Amending Avon Municipal Code, Title 13, Appendix 13•A, Water Rate SchedulefTap
Fee Schedule
September 2, 2009
Page 3 of 3
surcharge will be assessed. However, subsequent development, redevelopment, or additions will
incur the surcharge.
Mixed use and commercial development will be treated differently based on the fact that much of the
commercial land will be redevelopment of existing parcels. Once tap fees are paid and SFEs
assigned to the property, they are assigned in perpetuity. The language in the revised Appendix 13-
A allows the Town Engineer to make an assessment of the existing versus proposed SFE demand
and require additional surcharges and water rights as deemed appropriate.
Resolution 09 -26 will also incorporate some overdue housekeeping revisions, such as revising the
language pertaining to Water Meters, Service Charges, and Fire Hydrant Meters to refer to the
current Eagle River Water and Sanitation District Rules and Regulations. The Appendix 13 -A
contained in the current Municipal code has not been revised since 1996. By incorporating the
ERWSD Rules and Regulations by reference, the fees and other information will be updated as the
fees change, without the need to revise the Avon Municipal Code.
Financial Implications:
Instituting the proposed Tap Fee surcharge as contemplated in Resolution 09 -26 will provide the
Town with a dedicated revenue stream for the future acquisition and maintenance of water rights.
As water rights become scarce and the availability diminishes, the cost is growing proportionately.
Based on data from 2005 -2008, the surcharge proposed in Resolution 09 -26 would have increased
the Town's water fund revenue by approximately $25,000 per year. This annual figure will increase
substantially when the large commercial development planned for the Town Center areas occurs.
The amount of the Tap Fee surcharge is calculated to collect a fair and proportionate amount from
users based on usage and anticipated costs for future acquisition and maintenance of water rights.
Recommendation:
Staff recommends approval of Resolution 09 -26, Series of 2009, A Resolution Amending Avon
Municipal Code, Title 13, Appendix 13 -A, Water Rate Schedule/Tap Fee Schedule
Proposed Motion:
I move to approve Resolution 09 -26, Series of 2009, A Resolution Amending Avon Municipal Code,
Title 13, Appendix 13 -A, Water Rate Schedule/Tap Fee Schedule
Town Manager Commen
Attachments:
Attachment A — Resolution 09 -26, Series of 2009, A Resolution Amending Avon Municipal Code,
Title 13, Appendix 13 -A, Water Rate Schedule/Tap Fee Schedule
• Page 3
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Appendix 13 -A
Water Rate Schedule /Tap Fee Schedule
Classification
Residential Unit.
a) Base Tap Fee
Any living unit with a kitchen; a kitchen being defined as including but
limited to, hot and cold water, stove and/or microwave, sink and
refrigerator. Examples: residential condominiums, townhouses,
apartments, duplexes, triplexes, lock -off apartments, etc. Any commercial
business and/or facilities in a residential condominium complex must be
metered by a separate master meter separate from the residential units.
b) Oversized Unit Surcharge
A surcharge will be collected from all residential units in Avon, excluding
those within Mountain Star subdivision, exceeding 3,000 sq. ft. in size. A
surcharge will be collected from residential units in Mountain Star
exceeding 7;500 square feet. Where zoning designates a specific number
of residential units for a lot, the property owner may apply those designated
residential units towards the Oversized Unit Surcharge provided that the
total development of the lot does not exceed the number of SFE's
designated for the lot.
2. HoteULodge /MoteFLock- Off/Accommodation Unit.
Efficiency Room: a single room with a bathroom and a kitchen; a kitchen
being defined as including, but not limited to, hot and cold water, stove
and/or microwave, sink and refrigerator.
Rooms (with or without a bathroom, but without a kitchen) with private
access to a central corridor or the outside.
EXHIBIT A
Rate
$4,000.00 per unit up to 3,000
sq, ft., plus $2.00 per sq. ft.,
thereafter; plus $2.00 per sq.
ft. for private swimming pool
An additional $1.40 per sq_ ft.
over 3,000 sq. ft. (over 7,500
sq. ft. for Mountain Star)
$2,000.00 per efficiency room
$1,400.00 per room
Restaurants, bars, stores, offices and accessory areas (such as lobbies,
mechanical rooms, convention centers, ballrooms, auxiliary dining rooms,
guest recreational facilities) in a hotel/lodge must be metered by a separate
master meter so that these uses can be assessed a tap fee and usage fee
separate from the hoteFlodge /moteFlock- off/accommodation units. (minimum $6,000.00)
Commercial, Industrial and Irrigation.
(These uses must be metered on a separate master meter so that these uses can be assessed a tap fee and usage
fee separate from the residential, hotel, lodge, motel, lock -off, and accommodation units.) All commercial,
industrial, and mixed -use proiects must obtain a determination of water allocation dedicated for the property to
be developed prior to submittal of any plans for the property. The Town Engineer will then determine the
adequacy of the existing water allocation and determine the appropriate surcharge for new development or
additions, into $4,200 per SFE.
Service Line Size
SFE
Rate
3/ inch
1.50
$ 6,000.00
1 inch
2.60
10,400.00
11/2 inch
5.80
23,200.00
2 inch
10.30
41,200.00
3 inch
23.00
92,000.00
three -year period. One -third of the difference between the assigned SFEs and the reviewed SFEs shall be added
to the SFE schedule for base service charges effective with the January billing of each year until the assigned SFE
schedule is current.
Fire Hydrant Meters.
Fire hydrant meter use is allowed between April 15 and October 15 provided freezing at night is not occurring_
The customer is responsible for any damage to fire hydrants or fire hydrant meters which includes vandalism or
freezing. Rates for Fire Hydrant Meter use can be found in Appendix A, Schedule of Fees and Charges Eagle
River Water and Sanitation District Rules and Regulations
D-I.*- r;-- 1,4__ -ed te be tised between April 15th aiid Oeteber- 15th; pfo�Aded fFeezing a
and-lism er- freezing. Appr-eved for- eMensien efuse after- Oetabef l6th fai+st be requested in writing.
Fire hydrant water shall not be used for drinking purposes at any time A relocate fee of $68 to move the fire
hydrant meter from one fire hydrant to another is required Only District personnel are allowed to move fire
7. Mixed -Use
The SFE's for mixed -use developments shall be determined by using_the aggregate of the required SFE's
calculated for each of the various uses described above