59-01 Resolution
RECORD OF RESOLUTIONS
Day tan Legal Blank Co., Form No. 30045
Ii 59-01
Ii R l . N
_~____+ eso utwn 0... Passed .. . .........,
YEAR
----~~--
A Resolution Establishing Capacity Charges For Connection To The Public
Water and Sewer System(s) For Certain Residential Properties
11 WHEREAS, the rate structure for water and sewer user fees and capacity charges
il
Ii was significantly increased effective July 1, 1992; and
WHEREAS, Resolution No. 33-92 was adopted by Dublin City Council on April
20, 1992 establishing the intent to provide certain existing residential properties
and/or residents, as City Council may designate, with the opportunity to request
water and sewer service at a reduced tap charge; and
WHEREAS, Resolution No. 33-92 recognized that certain existing residential
properties did not have water and sewer services available to them prior to the
City implementing an increased rate structure for water and sewer user fees and
capacity charges; and
WHEREAS, the City has recently extended water and sewer service in the areas
of Hanna Hills Drive, Dublin Manor subdivision, MacBeth Drive, MacDuff Place,
MacDuff Way, and Dan Sherri Avenue; and
WHEREAS, the Public Services Committee of City Council met on December 3,
2001 to review options for payment of water and/or sewer connection fees in the
above referenced areas; and
WHEREAS, the Public Service Committee, by motion, approved allowing
properties in the above referenced areas to pay the water and/sewer capacity
charges that were in effect prior to July 1, 1992.
NOW, THEREFORE, BE IT RESOLVED, by the Council of the City of
Dublin, State of Ohio, If- of the elected members concurring, that:
Section 1. The residential properties in the areas of Hanna Hills Drive, Dublin
Manor subdivision, MacBeth Drive, MacDuff Place, MacDuff Way and Dan
Sherri A venue are eligible to pay the capacity charges that were in effect prior to
July 1, 1992 to connect into the public water and/or sewer systems.
Section 2. In order to be eligible to receive the pre-July 1, 1992 water and
sewer capacity charges, the residential property owner must pay the capacity
charge and be connected to the public water and/or sewer system(s) on or before
December 31, 2002.
Section 3. If the residential property owner is not connected into the water
and/or sewer system(s) on or before December 31, 2002, the current capacity
charge(s) in effect on January 1, 2003 will be required to be paid by the
residential property owner to connect to the system(s). This requirement also
applies to any residents who have requested and received a waiver with regard to
connecting to the system(s).
RECORD OF RESOLUTIONS
Dayton Legal Blank Co., Form No. 30045
II 59-01 (Continued)
! Resolution No. .. Passed.. ...,
~ YEAR
I Section 4. For residential property owners that have already paid the current
II capacity charge(s), a refund will be issued in an amount equal to the difference
II between the current capacity charge paid and the pre-July 1, 1992 capacity
i charge.
I
[;
I.
;! Section 5. This Resolution shall take effect and be in force in accordance with
I section 4.04(a) of the Dublin City Charter.
day of De~. , 2001.
ATTEST:
~(L~
Clerk of Council
I hereby wrtify thol copies of this Ordirwnce/Resolution were posted in the
City of Dublin in accordance witl~ Sedion 731.25 of the Ohio Revised Coue.
X~
tl.;6/;, (I
2
RECORD OF RESOLUTIONS
Doyton Le~lOl BkJnk Co lorm No 30045
Hes()!lltioll SO. 33-92 Pussed 19
A RESOLUTION OF INTENT OF DUBLIN CITY COUNCIL TO PROVIDE CERTAIN
EXISTING RESIDENTIAL PROPERTIES AND/OR RESIDENTS, AS COUNCIL SO MAY
DESIGNATE, WITH OPPORTUNITY TO REQUEST WATER AND SEWER SERVICE AT A
REDUCED TAP CHARGE, AND DECLARING AN EMERGENCY.
WHEREAS, the Dublin City Council is co.nsidering legislation that would
increase the tap fees for both water and sewer; and,
WHEREAS, the Service Committee of Dublin City Council is recommending
passage of said legislation; and,
WHEREAS, certain existing residential property owners have paid property
taxes and/or income taxes to the City of Dublin, which funds have
partially supported the expansion of these utilities; and,
WHEREAS, these existing residential properties currently may not have
sewer and water services available to them; and,
WHEREAS, the Service Committee recommends that these certain existing
residential properties and/or residents, as Council so may designate,
should be provided the opportunity to connect to such utility services for
some specified period of time in the future at tap fees which reflect
these previous contributions to utility system improvements.
NOW, THEREF&RE, BE IT RESOLVED by the Council of the City of Dublin, State
of Ohio, of the elected members concurring that:
Section 1. Council considers it necessary and declares its intention to
adopt formal legislation in the future to provide a reduction in the
proposed increases in water and sewer tap-in fees for certain existing
residential properties and/or residents, as Council so may designate,
within the City of Dublin whose owners may have previously paid property
and/or income taxes to support certain utility improvements and have not
had the opportunity to utilize these services prior to April 15, 1992.
Section 2. The City Manager and/or Director of Law is hereby directed
within 180 days to prepare legislation in general to provide for such
reductions. It is recognized that any such legislation will apply only to
the Dublin portion of said fees and that it will specify a time frame and
cost schedule defining eligibility for the reduced tap fees.
3. This resolution is hereby declared to be an emergency
for the immediate preservation of the public health, safety and
The reason for such necessity is that the Council wishes to
establish their intent to provide for such exemptions prior to or in
conjunction with their consideration of Ordinance #13-92 and Ordinance
#14-92.
Passed this c:? O....d..-day of ~A~ __ ' , 1992.
~(], ~
lerk of Council
I h~~~";",t -ii:~'~; (.f ;' :~ C,1:".",..jt;i"sr:ht1c:1 WNe posted in the
(it'; of " ',:' - '.~ ~:cGd:n:e wil:; Scct:OiJ 73i.25 of the C;!io Revised Code.
_~v<L C!, ~
Clerk of Council, Dublin, Ohio
(' Office of the City Manager
5200 Emerald Parkway, Dublin, Ohio 43017-1006
Phone: 614-761-6500, Fax: 614-889-0740 Memo
CITY OF Dl'BLlN
To: Members of Dublin City Council
From: Timothy C. Hansley, City Manager
Subject: Resolution No. 59-01, A Resolution Establishing Capacity Charges For Connection To
The Public Water and Sewer System(s) For Certain Residential Properties
Date: December 6, 2001
Initiated by: Marsha 1. Grigsby, Director of Finance ~~
At the November 19, 2001 City Council meeting, a motion was made requesting the Public Services
Committee to review options for payment of related water and sewer "tap-in" fees in the areas of
Hanna Hills Drive, Dublin Manor subdivision, MacBeth Drive, MacDuff Place, MacDuff Way, and
Dan Sherri Avenue. The Public Services Committee met on December 3, 2001 to review the
background information on capacity charges and to review options for payment of the capacity
charges for the above referenced areas. The administrative memo presented to the Committee is
attached for reference.
The Public Services Committee, by motion, directed the administration to prepare legislation
providing that the residential properties in the areas of Hanna Hills Drive, Dublin Manor subdivision,
MacBeth Drive, MacDuff Place, MacDuff Way and Dan Sherri A venue are eligible to pay the
capacity charges that were in effect prior to July 1, 1992. The motion included a time frame for
eligibility. The reduced, or pre-July 1, 1992 capacity charge rates, will be available to the property
owners in these areas until December 31, 2002. If the property owner has not connected to the water
and/or sewer systems prior to December 31, 2002, the current capacity charges in effect on January
1, 2003 will be required to be paid by the residential property owner.
There have been several residents who have paid the current capacity charge to connect to the
system(s). The Public Services Committee directed that the difference between the current capacity
charge paid and the pre-July 1, 1992 capacity charge be refunded.
This legislation does not limit the eligible property owners to those property owners that were within
the corporate boundaries of Dublin. This issue was discussed during the meeting, but the restriction
was not included in the motion made. Since 1993 there have been 27 lots in the Dublin Manor area
that have annexed into the City. The following annexation petitions have been approved:
- 1993 2 lots
- 1997 1 lots
- 2000 20 lots
- 2001 4 lots
If the desire is to restrict the pre-July 1, 1992 capacity charges to only those residential properties
within the City, Section 1 will need to be amended.
If you have any questions or need any additional information, please do not hesitate to contact
Marsha.
T:\2001\112-RES-059-01 Memo.doc
(' Office of the City Manager
5200 Emerald Parkway, Dublin, Ohio 43017-1006
Phone: 614-761-6500, Fax: 614-889-0740 Memo
CITY OF DUBLIN
To: Members of Dublin City Council
From: Timothy C. Hansley, City Manager / ~
Subject: "Tap-in" Fees For Dublin Manor Subdivision, Hanna Hills Drive, MacBeth Drive,
MacDuff Place, and MacDuff Way and Dan Sherri Drive
Date: December 3,2001
Initiated by: Marsha 1. Grigsby, Director of Finance
Frank A. Ciarochi, Director of Development
As the Committee Members are aware, a motion was made at the November 19,2001 City Council
meeting directing the Public Services Committee to review options for payment of related water and
sewer tap-in fees for the above referenced areas and report back to City Council in order that
resolution to this issue can be made at the December 10, 2001 City Council meeting.
Background Information
The administration feels it is important to provide background information on the water and sewer
systems and fees prior to 1992. As you are aware, user fees and capacity charges (tap-in fees) were
increased in 1992.
Prior to July 1, 1992, the date the first user fee and capacity charge increase went into effect, the user
fee for water was $1.50 per thousand cubic feet of water consumed, there was no sewer user fee
collected, and the capacity charges were $176 for a 3 /4" tap for water and $100 for sewer. Both
water and sewer systems have been primarily built by developers and the users of the systems. The
following provides a recap ofthe historical value ofthe water and sewer systems and how it has been
funded:
Water Sewer
Total historical value of the system $25,214,664 $46,809,614
Financed by developers, users of the
system and special assessments 17,368,322 68.88% 41,914,202 89.55%
Financed by income tax revenues 7,359,093 29.19% 4,369,412 9.33%
Financed by property tax revenues 487,249 1.93% 525,000 1.12%
This information was presented to City Council's Service Committee in 1992 when the issue of
"grandfathering" tap-in fees had been originally discussed. The breakdown of how the water system
was built is very similar to what it was in 1992. The sewer system breakdown is different as a result
of the construction of the Upper Scioto West Branch Interceptor (USWBI) which is being paid for
utilizing the revenues collected from users of the sewer system.
Memorandum
December 3,2001
Page Two
The maintenance of both systems has been paid from the Water and Sewer Funds. The only
exception related to the City's inflow and infiltration (III) problem that resulted in a "connection
ban" in 1990. During 1990, 1991, and 1992 transfers totaling $1,550,000 were made from the
General Fund to the Sewer Fund to address the III problem.
Of the total $11,728,505 of infrastructure funded in the water and sewer systems by income tax
revenues, $5,980,000, or 51 % of the total, occurred in 1988 - 1990. When the City began putting
together its first five-year capital improvements program in 1991, it became apparent that significant
capital improvements in both the water and sewer systems were going to be needed in the future. If
the City didn't look at increasing user fees and capacity charges for both the water and sewer
systems, City Council and the administration realized our ability to construct needed and desired
facilities and roadways would not be possible or they would have to be deferred. Water and sewer
systems are considered enterprise operations which mean they should be self-supporting. Based on
the infrastructure improvements needed in both systems (i.e. water towers, booster stations and
USWBI) and the desire for the systems to be self-supporting, the City began the process of
evaluating the rate structure for both systems.
The goal ofthe utility rate study that was completed by Coopers & Lybrand was to establish fees
that would greatly reduce or eliminate the use of income tax revenues for the operations, including
future capital costs, of the water and sewer systems while remaining competitive with surrounding
entities. Once the necessary rates were determined, the decision was made to implement the
increases in both the user fees and capacity charges over a period of four and one-half years. Since
January 1, 1996, the following fees have been in place:
Water Sewer
<.
User fees (per thousand cubic feet of water $ 4.55 $ 8.35
consumed)
Capacity charges for a 'l4 " tap $1,500 $1,600
Since the increase in the rate structure for water and sewer fees has been implemented, both systems
have been self-supporting with the exception of indirect costs. It was originally assumed that a
portion of the debt related to the USWBI would still need to be paid from income tax revenues, but
that has not been the case. The debt payments for the USWBI actually started three years later than
originally projected and commercial development was extremely high in the mid-to-late 90's
resulting in significant collections of capacity charges.
When the new fees were adopted, concern was expressed with regard to the areas of the City that did
not have access to the water and sewer systems at that time and that they would someday connect
into the system and have to pay the increased capacity charge. As a result, Resolution No. 33-92 was
adopted. This Resolution stated it was the intent of City Council to provide certain existing
residential properties and/or residents, as City Council may designate, the opportunity to request
water and sewer service at a reduced tap charge. The Resolution is attached for reference. The areas
of the City that are currently being provided access to the public water and/or sewer systems are the
first areas that Resolution 32-92 applies. There has been debate over this statement, but at the time
the Resolution was adopted it was assumed the main lines would be installed at the expense of
others, (i.e. developers and/or property owners) not the City.
Memorandum
December 3,2001
Page Three
Prior to 1992, there were several special assessments levied against property owners for the
extension of water and/or sewer lines that benefited their properties. If utilities were not extended
by developers as new development occurred and the City extended the utilities, it was the City's
policy to assess the benefiting property owners. At the time the Resolution was adopted, the City's
Water and Sewer Funds did not have the resources to extend lines and the City was trying to
eliminate the reliance on income tax revenues to support the water and sewer systems. At the end
of 1991, the Water Fund and Sewer Fund had unencumbered cash balances of $225,845 and
$337,859, respectively.
Currently, the Water and Sewer Funds have unencumbered cash balances of $9,095,024 and
$11,461,920. As you are aware, the debt service obligations related to the construction of
Rings/Blazer water tower and the construction ofthree future water towers are intended to be funded
from the Water Fund and the debt service obligations related to the USWBI and repairs to the Dublin
Road sewer line are intended to be funded from the Sewer Fund.
The construction of the water and sewer lines in the four areas under discussion are substantially
complete. The construction costs of the water and sewer lines in the four areas currently total
$3,072,107. Ofthe total, $200,180 is for design, $10,153 for easement acquisition on two properties
and $2,861,774 for construction.
Possible Options
At the direction of City Council, the Public Services Committee is to review options for payment
of Dublin water and sewer tap fees for the areas in which the City will soon be completing the
extension of water and sewer lines. Currently property owners are required to connect to the public
sewer system and Ordinance No. 146-01 will require the same for water. Both provide for waivers
with regard to connecting in instances of hardship.
Option No. 1
Allow the property owners to pay the water and sewer capacity charges that were effective to prior
July 1, 1992. This would allow property owners to connect to the public water system for $176 and
to connect to the public sewer system for $100. Both rates assume a %" tap. Ifthe City would select
this option the following fees would be waived:
Number of
Area Properties Water Fees Sewer Fees Total
Hanna Hills 26 $34,424 $39,000 $73,424
MacBeth/MacDuff 28 37,072 42,000 79,072
Dublin Manor 58 76,792 87,000 -0- 163,792 76,792
Dan Sherri 14 18,536 21,000 -0- 39,536 18,537
$166,824 $81,000 $247,824
Option No.2
Allow the property owners to pay a reduced fee for capacity charges. This could be an arbitrary
reduction or based on the percentage that each system has been financed by income tax and/or
Memorandum
December 3,2001
Page Four
property tax.
One issue that needs to be kept in mind is that Resolution No. 33-92 referenced existing residential
properties and/or residents and that several current property owners in these areas were not residents
when the Resolution was adopted.
Option No.3
Allow the current capacity charges to be placed as an assessment on the property and collected on
the property tax bills over a period of time, three to five years. If this option is selected the City
would also be able to include interest or carrying costs if City Council so desired.
Option No.4
Allow the current capacity charges to be placed as an assessment on the property based on financial
hardship. Eligibility could be determined based on Income Guidelines for Franklin County Housing
Programs or some other criteria as directed by City Council.
Option No.5
Require property owners to pay the current capacity charges and pay when the permit to tap-in is
issued. This is the City's current policy.
There may be property owners that request a waiver to connect into the system and we will need to
address whether or not they would be eligible to participate in Option No. 1 through Option No.4.
One final issue that needs to be raised is the fact that there are several other areas throughout the City
that do not currently have access to the public water and/or sewer system(s). The City Engineer
prepared a memo dated January 31,2000, that projected costs for extending water and sewer service
to other areas currently within the City would cost $6,825,000 for water and $13,588,250 for sewer.
Administrative Recommendation
As a result ofthe City installing the main water and sewer lines at no cost to the benefiting property
owners and the other obligations of the system(s), the administration recommends that the current
fees for connecting into the public system(s) be charged. We understand the cost to connect into the
system(s) including the cost to install the service line(s) is significant and could, in some instances,
create a financial burden on the property owner. We feel a good compromise would be Option No.
3. We would further recommend the period of time used to pay for the capacity charges be assessed
over a three year period if water is the only connection and period of five years be allowed if the
property owner is connecting into both the water and sewer systems. We would also recommend
that interest be assessed based on the current average interest rate the City earns on its investments.
If you have any questions, please do not hesitate to contact Marsha.
T:\2001\110-Tapln Fees.doc