AGENDA MEMORANDUM

 

 

Meeting Date:†††††††††† April 10, 2006

 

From:†††††††††††††††††††††††††† Jay M. Evans, Deputy City Manager

 

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 Developerís 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____

 

Department: ______________________

Prepared by:______________________†††††††††††††††††††††

Attachments: ††††††††Yes____†† No ______

Advertised:†† ____Not Required ______†††††††††††††††††††††

Dates:†† __________________________†††††††††††††††††††††

Attorney Review :†††††† Yes___No ____

††††††††††††††††††††††††††††††††††††††††††††††††

_________________________________†††††††††††

Revised 6/10/04

 

Reviewed by: Dept. Head ________

 

Finance Dept. __________________†††††††††††††††††††††††††††††††††††

†† ††††††††††††††††††††††††††

Deputy C.M. ___________________††††††††††††††††††††††††††††††††††††††††† †††††††††††††††††††††††††††††

Submitted by:

City Manager ___________________

 

Account No. _________________

 

Project No. ___________________

 

WF No. ______________________

 

Budget______________________

 

Available _____________________