HomeMy WebLinkAbout1994-020 Cost receovery charge •
ORDINANCE NO. 94 20
AN ORDINANCE relating to sanitary sewer capital cost recovery charge,
and amending Section 7 58 040 to require payment of
principal sanitary capital cost recovery charge at the time
the City issues a plumbing permit for sewer connection, or
at the time of approval of an outside utility service
application.
WHEREAS, Section 7 58 040 of Yakima Municipal Code Chapter 7 58
currently provides that the principal sanitary sewer capital cost recovery
charge shall be paid at the time application is made to the City for a plumbing
permit for the sewer connection, or at the time of approval of an outside utility
service application, whichever event is earlier; and
WHEREAS, the Yakima City Council deems it to be in the best interest of
the City of Yakima to amend Section 7 58.040 to provide the principal sanitary
sewer capital cost recovery charge shall be paid at the time the City issues a
plumbing permit for the sewer connection, or at the time of approval of an
• outside utility service application, now, therefore,
BE IT ORDAINED BY THE CITY OF YAKIMA:
Section 1 Section 7 58 040 of the City of Yakima Municipal Code is
hereby amended to read as follows.
"7.58.040 Manner and time of payment.
The principal sanitary sewer capital cost recovery charge,
determined according to Section 7 58 030 of this chapter, shall be
paid due and payable at the time ... • . .. - - •
€er the city issues a finalized plumbing permit
n otification for the sewer connection, or at the time of approval
of an outside utility service application, whichever event was
earlier City code administration shall provide a copy of the
finalized plumbing permit notification to the engineering
division to activate billing for the capital cost recovery charge.
In the event of any property which shall be developed for a
substantially commercial or industrial use, then such charge may
be paid pursuant to an agreement executed by the property
owner Provided, that such agreement shall only apply to such
property for which the entire such charge is five thousand
dollars or more. Such agreement shall provide for payment of
the principal charge in equal annual installments over a ten-
year period (with a provision to allow prepayment of all or any
amount of the unpaid balance without penalty), together with
interest on the unpaid principal at a rate of one percent above
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that rate which the city could expect to obtain from investment of
the same amount of money for the same term as determined by
the director of finance and budget. From time to time the form of
the installment agreement shall be subject to approval by
resolution of the Yakima city council
In the event a connection was made, or approval given for
outside utility service, prior to the effective date of this chapter,
the interest in the basic charge as provided by subsection A of
Section 7 58.030 of this chapter shall be charged only to the date
of such connection or date of approval, whichever date was
earlier "
Section 2 This ordinance shall be in full force and effect 30 days after
its passage, approval, and publication as provided by law and by the City
Charter
PASSED BY THE CITY COUNCIL, signed and approved this Otiaay of MaY ,
1994
g at V �l44.,
ATTEST Mayor
I /
City Clerk
Publication Date: 5 - 13 - 94
Effective Date: 6 - - 94
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g e o r g e is. general ntractor
commerc & indust nal co nstruction
(509) 248 -9496 • fax (509) 453 -2773
116 n 3rd avenue, yakima, wa 98902
e oin'pany, • =in c.
January 07, 1994 REED
CIT
Y OF YAKIMI4
JAN 7 1994
Dick Zags OFFICE OF CITY MANAGER
City Manager
City of Yakima
129 North Second Street
Yakima, Washington 98901
Dear Dick
I want to follow up on our conversation of yesterday, concerning the CCRC on sewer
hook -ups. Currently, the City of Yakima requires the developer to pay all CCRC charges
up front at the tune of property sub - division. I understand that Council took this position
due to past practices that allowed some charges to be not collected.
I have no problem with the reimbursement of these capital cost. Money was expended by
the Sewer Division and should be re- covered so that more work can be done. However, I
beheve the time of collection, i.e up front prior to any lot being sold or even developed, is
a big handicap (financially) to anyone wishing to develop their property Therefore, could
you investigate the feasibihty of the following?
Rather than collect the CCRC at the time of sub - division, the City could collect the money
at the time each lot or parcel is sold for development by the developer or builder To
protect the cities interest, a hen would be placed against the new lot/parcel created by the
sub - division. The lien could be handled by City staff or by the developers Attorney or
Secretary with a copy to City Staff. The City would still collect 100% of the CCRC and
any interest accrued. The cost of CCRC is a pass through cost on all property anyway so
that no additional charges, past what is being done currently, would be created. No one,
developer/builder or the City of Yakima would incur any expense that isn't already in place.
To give you an example, I am workmg on a 15 lot sub - division for a client. The CCRC
cost will be approximately $800 00 per lot or $12,000 00 The $12,000 00 which my
chent would pay to the City up front to complete their sub - division is the equivalent of
$40,000 00 - $45,000 00 {the remainder being borrowed money with the normal 30%
participation by the borrower} worth of hard construction cost.
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In the case of my client, it is the sidewalks, curb, gutter and most of the County street cost.
In other wards. a major impact. Please understand, when a sub - division is created and the
infrastructure is mstalled all money is expended with a hove that the lots sale There is no
guarantee The owner /developer's money is totally blue sky Development is an extremely
expensive proposition and I've seen, as I'm sure you have, projects stopped for lack of the
last few dollars. I beheve the proposal I've submitted is both fair and equitable for all
parties. No one is receiving more or less that is owed, it is the timing which is the
important factor You might ask Councilman Brado about this, as a Realtor /developer he
probably has more expenence than I in what these cost can do to a project.
If you need any further information or would like me to discuss this with your staff, let me
know Best of luck in "94"
mcerely,
• org echtel
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