AGENDA MEMORANDUM
Meeting Date:
From: Jay
M. Evans,
Subject: Ordinance creating
Section 25-501 of the Code of Ordinances providing for natural gas line
installation within subdivisions; amending Section 25-452 providing for natural
gas infrastructure as required improvement; amending Section 22-248 providing
for gas main and service extensions to be paid by the developer
Staff Recommendation:
Staff
recommends approval of the attached ordinance to require developers to install
natural gas mains within new subdivisions and to require the installation of
two (2) gas-burning appliances (water heater and furnace) within each new
residential unit.
Analysis:
The
City currently requires installation of gas mains where connection is
reasonably available as a part of our standard Annexation Agreement. These agreements are required with every
annexation the City processes. This requirement
ensures that new Leesburg residents can enjoy this reliable and efficient
energy source that has historically been much cheaper than electric power.
Although
it has been standard practice for development of newly annexed properties, the
City has never amended its Code of Ordinances to make the requirement law and
to make the requirement applicable to properties already within corporate
limits. As the City grows, it should
seek to have all reasonably-situated properties connected to its natural gas
utility. The attached ordinance would
codify that requirement.
Also
under this ordinance, the cost of development would be borne by the
developer. As is currently the case with
water and sewer infrastructure, natural gas infrastructure would be the
responsibility of the developer. The
City would no longer offer to pay for the installation of gas mains based on a
seven year return-on-investment. Should
it be in the best interest of the City to partner with a developer to extend
mains (off-site only) to a property that is not reasonably situated, the City
would retain the option to cost-share to get the mains to the property. Projects where service is not reasonably
available, and the City does not desire to cost-share, would not be required to
install gas.
The
developer would also be required to provide a natural gas water heater and
natural gas furnace.
The
ordinance exempts developments where a natural gas contract has previously been
executed, as well as developments that have received final approval of
Construction Plans as of the effective date.
Options:
1)
Approve the Ordinance amending City Code Chapters 22 and
25; or
2) Such alternative action as the Commission
may deem appropriate.
Fiscal Impact:
This
change will have a positive fiscal impact to the gas enterprise fund, relieving
it of a seven year financial burden for every development that would have built
under current code. The City will not
see the full benefit until all subdivisions vested under previously approved
Developer’s Agreements have been completed constructed. The potential savings, based on expenditures
in the last three fiscal years, is $400,000 to $500,000 per year.
Submission
Date and Time: 4/24/2006 12:01 PM____
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Department: ______________________ Prepared by:
______________________ Attachments: Yes____ No ______ Advertised: ____Not Required ______ Dates: __________________________ Attorney Review : Yes___
No ____
_________________________________ Revised
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Reviewed by: Dept. Head ________ Finance Dept. __________________ Deputy C.M. ___________________ Submitted by: City Manager ___________________
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Account No. _________________ Project No.
___________________ WF No. ______________________ Budget ______________________ Available
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