Fiscal Note
No City appropriation required.
Title
Amending Sections 13.07, 13.18(6)(a) and 13.19(2), and creating Sec. 4.08(1)(d) of the Madison General Ordinances to address the connection of properties served by private water supply cooperatives to the City water supply and update the residential connection rebate program, to bring the lead service line reimbursement amount in line with the updated residential connection rebate amount, and to allow for longer installment payments of special assessments for customers of private water supply cooperatives.
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DRAFTER’S ANALYSIS: This ordinance largely addresses the connection of the residential properties served by private water supply cooperatives to the City’s water supply, as well as updating the residential connection rebate and the lead service line reimbursement programs, and allowing a longer installment period for the payment of special assessments by private water supply cooperative customers.
Under this ordinance, the City’s residential connection requirements are being updated to require that properties served by the private water supply cooperatives connect to the City water mains, once installed, no later than 60 days before the cooperative declares that it will cease to operate its private wells and water system. While the Water Utility would be expected to work with private water supply cooperatives on transitioning water services to the City mains, this 60 day window will give the City additional time to pursue enforcement or cause the connections to be made before private water service ceases.
In addition, this ordinance will update the residential connection rebate program so that private water supply cooperative customers are eligible for the increased rebate of $3,000, which amount is being increased to account for current costs. These changes will also expand the rebate to other properties that abandon private wells to connect to the City’s system which were previously ineligible because the properties weren’t in the City before 2013 and weren’t connected to the City’s water supply before 2016. As a companion to these changes, the lead water service line replacement reimbursement is being updated to match the $3,000 residential connection rebate, to reflect increased costs of that work. Also, a deadline for rebate applications is being created.
Finally, this ordinance will provide that stand-alone water main assessment installment payments will no longer be capped at 5-years, and that customers of private water supply cooperatives may make installment payments for 30-years associated with the water main extension to make this conversion more affordable for residents.
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The Common Council of the City of Madison do hereby ordain as follows:
1. Subdivision (d) of Subsection (1) of Section 4.08 entitled “Special Assessments-Payment in Installments” of the Madison General Ordinances is created as follows:
“(d) Thirty (30), where the special assessments are being levied to fund a water main to serve properties provided private water service by a private water supply cooperative, as defined in Sec. 13.07(2)(b)8.”
2. Paragraph 8 of Subdivision (b) entitled “Definitions” of Subsection (2) entitled “Residential Connections Required” of Section 13.07 entitled “Service Connections” of the Madison General Ordinances is created as follows:
“8. Private Water Supply Cooperative means a privately owned cooperative association, organized under Wis. Stats. Ch. 185, that provides private water service to its members within the Water Utility’s service area.”
3. Paragraph 3 of Subdivision (c) entitled “Connection Requirement” of Subsection (2) entitled “Residential Connections Required” of Section 13.07 entitled “Service Connections” of the Madison General Ordinances is created as follows:
“3. Following the installation of public water mains in the adjacent right-of-ways, any building served with private water by a private water supply cooperative shall be connected with the water main pursuant to the standards set forth in sub. (1).”
4. Subdivision (d) entitled “Timing of Connection” of Subsection (2) entitled “Residential Connections Required” of Section 13.07 entitled “Service Connections” of the Madison General Ordinances is amended as follows:
“(d) Timing of Connection. Buildings subject to the connection requirement in sub. (c) shall be connected to the water main within ninety (90) days of either the expiration of a valid well operation permit issued under Sec. 13.21(5), MGO, unless the property owner renews the well operation permit during this period of time, or upon the conveyance of the property pursuant to Wis. Stat. ch. 706, whichever occurs first. In addition, buildings served by a private water supply cooperative shall be connected to the water main no later than sixty (60) days before the date that the private water supply cooperative declares it will cease to operate its private wells and water system.
However, for properties annexed into or attached to the City of Madison that would be subject to the connection requirement in sub. (c) upon annexation or attachment, connection shall be made within one hundred eighty (180) days of the effective date of said annexation or attachment. Properties annexed into or attached to the City that would not be subject to the connection requirement in sub. (c) upon annexation or attachment must connect within ninety (90) days of a water main extension that invokes the requirements of sub. (c)1.”
5. Subdivision (i) entitled “Residential Connection Rebate” of Subsection (2) entitled “Residential Connections Required” of Section 13.07 entitled “Service Connections” of the Madison General Ordinances is amended as follows:
“(i) Residential Connection Rebate. Upon the connection of a building to the water main as required under this sub. (c), the Water Utility General Manager is authorized to issue a rebate to the owner of the property of up to fifty percent (50%) of the cost to the owner of the connection of the building to the water main, up to a maximum rebate of three two thousand dollars ($3,0002,000). In determining if a property is eligible for this rebate, the distance limitation set forth in sub. (c)2. does not apply. A rebate will be issued if the following conditions are met:
1. The connection to the water main is made prior to January 1, 2016.
12. The property owner had a valid well operation permit issued under Sec. 13.21, MGO, prior to the well abandonment, or was a member of a private water supply cooperative.
23. The property owner provides the Water Utility General Manger with receipts and proof that the foregoing requirements have been met.
34. The Water Utility has not issued a citation or made a written referral to the City Attorney for non-compliance with the requirements of this subsection to the property owner, or their predecessor in interest.
5. The property is in the City of Madison as of January 1, 2013.
46. Except for properties that were members of a private water supply cooperative, Tthe property owner properly abandons the private well on the property within thirty (30) days of the connection, or secures a new well operation permit under Sec. 13.21(5) for an irrigation-only well.
57. The City or the Madison Water Utility has sufficient funding available to support the rebate.”
6. Subdivision (a) of Subsection (6) entitled “Financing of Replacement” of Section 13.18 entitled “Lead Water Service Line Replacement” of the Madison General Ordinances is amended as follows:
“(a) The Water Utility may, contingent on availability of funding, administer lead service replacement reimbursement program. Upon application to the Water Utility, owners, managers or persons otherwise exercising control over properties with lead customer-side water service lines who replaced such lines after November 1, 2016, in accordance with applicable Utility rules, guidelines and schedules, and who have complied with all of the provisions of this ordinance will be eligible for a reimbursement payment not to exceed fifty percent (50%) of the cost of replacement of any lead customer-side water service line in use, up to a maximum of $3,0001,500 for each service line replaced. Application for reimbursement must include, as documentation of replacement and cost, a payment receipt from a licensed plumber for replacing the lead customer-side water service line at the subject property. Application must be made within ninety (90) days of the completion of work. Disputes regarding eligibility for reimbursement may be appealed to the Water Utility Board.”
7. Subsection (2) of Section 13.19 entitled “Water Main Assessment Procedure” of the Madison General Ordinances is amended as follows
“(2) When a water main extension is proposed, the Common Council shall adopt a Resolution directing the installation of the main and directing the Water Utility General Manager to report on the assessments for the main in accordance with Wis. Stat. § 66.0701, and indicating that the assessments are to be placed on the tax roll in five (5) equal annual installments with interest as established by Sec. 4.08 of the Ordinances.”