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UTILITY COMMITTEE AGENDA JUNE 23, 2014 - 5:00 P.M. CITY HALL COUNCIL CHAMBERS 15 LOOCKERMAN PLAZA DOVER, DELAWARE Public comments are welcomed on any item and will be permitted at appropriate times. When possible, please notify the City Clerk (736-7008 or e-mail at CityClerk@dover.de.us) should you wish to be recognized. AGENDA ADDITIONS/DELETIONS 1. Proposed Ordinance #2014-15 Amending Chapter 110 - Utilities, Article III - Water Service, Division 3 - Water Impact Fees, Section 110-207 - Establishment of Equivalent Dwelling Units and Article IV - Sanitary Sewer Service, Division 3 - Wastewater Collection Impact Fees, Section 110-282 - Establishment of Equivalent Dwelling Units (Sponsors: Bonar/Hutchison/Koenig) (Staff recommends adoption of Proposed Ordinance #2014-15) 2. Adjournment by 5:55 p.m. /tm S:\AGENDAS-MINUTES-PACKETS-PRESENTATIONS-ATT&EXH\Committee-Agendas\2014\06-23-2014 UTILITY.wpd THE AGENDA ITEMS AS LISTED MAY NOT BE CONSIDERED IN SEQUENCE. THIS AGENDA IS SUBJECT TO CHANGE TO INCLUDE THE ADDITION OR THE DELETION OF ITEMS, INCLUDING EXECUTIVE SESSIONS.

ACTION FORM PROCEEDING: Utility Committee AGENDA ITEM NO.: DEPARTMENT OF ORIGIN: City Manager’s Office DATE SUBMITTED: 06-16-2014 PREPARED BY: Scott D. Koenig, P.E., City Manager SUBJECT: Amendment to Chapter 110 – Utilities, Articles III & IV RELATED PROJECT: N/A APPROVALS: City Manager , Controller EXHIBITS: Exhibit A – Draft Ordinance #2014-15 EXPENDITURE REQUIRED: N/A AMOUNT BUDGETED: N/A FUNDING SOURCE (Dept./Page in CIP & Budget): N/A TIMETABLE: Proposed 6-23-2014 – Utility Committee; 07-14-2014 – First Reading; 07-28-2014 – Final Reading RECOMMENDED ACTION: Recommend consideration of Ordinance 2014-15 which amends Chapter 110 – Utilities, Articles III & IV of the Dover Code of Ordinances. BACKGROUND AND ANALYSIS Currently, Chapter 110 – Utilities, Articles III & IV has a maximum cap of 100 Equivalent Dwelling Units (E.D.U.’s) per certificate of occupancy. The maximum cap was intended to encourage business expansion; however, recent examples such as the Garrison Energy Center (Calpine) have placed the City at a negotiating disadvantage due to the existing prescriptive cap in the code. The proposed changes will give City Council the ability to reduce the maximum number of E.D.U.’s for large development projects; however, the applicant must demonstrate their economic benefit to the City before City Council will reduce the maximum number of E.D.U.’s to as low as 100 E.D.U.’s .

CITY OF DOVER PROPOSED ORDINANCE #2014-15 1 BE IT ORDAINED BY THE MAYOR AND COUNCIL OF THE CITY OF DOVER, IN COUNCIL 2 MET: 3 That Chapter 110 - Utilities, Article III - Water Service, Division 3 - Water Impact Fees, Section 110-207 4 - Establishment of Equivalent Dwelling Units of the Dover Code be amended by deleting the text indicated 5 in red strikeout and inserting the bold, blue text, as follows: 6 Sec. 110-207. Establishment of equivalent dwelling units. 7 (a) Determination for residential dwellings. Whenever by ordinance or by contract the city imposes 8 or assesses water charges or fees on the basis of EDUs, an EDU shall be determined in the same 9 manner as wastewater collection charges or fees and as defined in the most recent impact fee 10 ordinance adopted by Kent County Levy Court. An EDU for a residential dwelling shall be 11 determined as follows: 12 (1) Houses, dwellings, mobile homes and apartments with one kitchen and one or more baths 13 and bedrooms separate from the kitchen .....1.0 EDU 14 (2) Efficiency unit or cottage having a living space in one room and having one bath .....1.0 EDU 15 (3) Dwelling with one kitchen and one or more baths and bedrooms separate from the kitchen 16 and attached to other dwellings or structures .....1.0 EDU 17 (b) Determination for nonresidential establishments. Whenever by ordinance or by contract the city 18 imposes or assesses water charges or fees on the basis of EDUs, the number of EDUs to be 19 charged shall be determined in the same manner as wastewater collection charges or fees and 20 using the appropriate specific assessment as defined in the most recent impact fee ordinance 21 adopted by Kent County Levy Court. When users propose water usage under circumstances other 22 than the specific assessments defined by the county, the city's impact fee shall be calculated by 23 the city engineer based on flow in GPD. In such cases where the impact fee is calculated by flow, 24 each EDU shall be equal to 250 GPD. 25 (c) Minimum assignment. A minimum of one EDU will be assigned to each establishment 26 connecting to the system. No fractional parts of EDUs will be assigned. The number of EDUs 27 shall be rounded up to the nearest whole number of EDUs. 28 (d) No assignment. If an establishment does not have any physical facilities which result in a water 29 demand on the city's water system, then the number of EDUs assigned to it shall be zero. 30 (e) Maximum assignment. The city shall in no case charge an impact fee based on more than 31 100 EDUs per certificate of occupancy. For large development projects that have a 32 significant impact on the City and/or the utility, City Council may consider a maximum 33 assignment of EDUs per certificate of occupancy or project. A large development project 34 is any project or connection that will contribute in excess of 100 EDUs. In these cases, City 35 Council may reduce the number of assigned EDUs to as low as 100 EDUs. Any request 36 that will contribute less than 100 EDUs cannot be considered a large development project 37 and therefore would not be eligible for consideration of a reduction.

Proposed Ordinance #2014-15 - Chapter 110 - Utilities Page 2 38 BE IT FURTHER ORDAINED: 39 That Chapter 110 - Utilities, Article IV - Sanitary Sewer Service, Division 3 - Wastewater Collection Impact 40 Fees, Section 110-282 - Establishment of Equivalent Dwelling Units of the Dover Code be amended by 41 deleting the text indicated in red strikeout and inserting the bold, blue text, as follows: 42 Sec. 110-282. Establishment of equivalent dwelling units. 43 (a) Determination for residential dwellings. Whenever by ordinance or by contract the city imposes 44 or assesses wastewater collection and transmission charges or fees on the basis of EDUs, an EDU 45 shall be determined as defined in the most recent impact fee ordinance adopted by the Levy 46 Court of the county. An EDU for a residential dwelling shall be determined as follows: 47 (1) Houses, dwellings, mobile homes and apartments with one kitchen and one or more baths 48 and bedrooms separate from the kitchen .....1.0 EDU 49 (2) Efficiency unit or cottage having a living space in one room and having one bath .....1.0 EDU 50 (3) Dwelling with one kitchen and one or more baths and bedrooms separate from the kitchen 51 and attached to other dwellings or structures .....1.0 EDU 52 (b) Determination for nonresidential establishments. Whenever the city imposes or assesses 53 wastewater collection and transmission charges or fees on the basis of EDUs, the number of 54 EDUs to be charged shall be determined using the appropriate specific assessment as defined in 55 the most recent impact fee ordinance adopted by the Levy Court of the county. When users 56 propose to discharge wastewater under circumstances other than the specific assessments defined 57 by the county, the city's impact fee shall be calculated by the city engineer based on flow in GPD. 58 In such cases where the impact fee is calculated by flow, each EDU shall be equal to 300 GPD. 59 (c) Minimum assignment. A minimum of one EDU will be assigned to each establishment 60 connecting to the system. No fractional parts of EDUs will be assigned. The number of EDUs 61 shall be rounded up to the nearest whole number of EDUs. 62 (d) No assignment. If an establishment does not have any physical facilities which have a load 63 producing an effect on the city's wastewater collection and transmission system, then the number 64 of EDUs assigned to it shall be zero. 65 (e) Maximum assignment. The city shall in no case charge an impact fee based on more than 66 100 EDUs per certificate of occupancy. For large development projects that have a 67 significant impact on the City and/or the utility, City Council may consider a maximum 68 assignment of EDUs per certificate of occupancy or project. A large development project 69 is any project or connection that will contribute in excess of 100 EDUs. In these cases, City 70 Council may reduce the number of assigned EDUs to as low as 100 EDUs. Any request 71 that will contribute less than 100 EDUs cannot be considered a large development project 72 and therefore would not be eligible for consideration of a reduction. 73 ADOPTED: * 74 S:\ORDINANCES\2014\DRAFT\Ordinance #2014-15 Amending Ch 110-Utilities, Art III-Water Service, Div 3-Water Impact Fees & Art IV-Sanitary Sewer, Div 3-Wastewater Collection Impact Fees.wpd

Proposed Ordinance #2014-15 - Chapter 110 - Utilities Page 3 75 SYNOPSIS 76 The proposed amendment would remove the current impact fee cap of 100 EDUs per 77 certificate of occupancy. Developers of projects equal to or in excess of 100 EDU’s that 78 can demonstrate their economic benefit to the City of Dover may request City Council 79 to reduce the number of assigned EDUs to as low as 100 EDUs. 80 (SPONSORS: BONAR, HUTCHISON, AND KOENIG) 81 Actions History 82 06/23/2014 - Scheduled for Introduction at Utility Committee