HomeMy WebLinkAbout2005-022 Adjustment of Wastewater Rates, Fees, Charges; YMC Amendment ORDINANCE NO 2005- 22
AN ORDINANCE of the City of Yakima relating to wastewater rates, fees, and
charges; adjusting various wastewater rates, fees and charges,
amendmg Sections 7.58 030, 7.58 050, 7 58 060, 7.58.070,
7.58 075, and 7.58 090 of the Yakima Municipal Code; and
providing for related matters.
WHEREAS, the City Of Yakima (the "City ") is authorized by Title 35 RCW to
acquire, construct, own operate, and provide fmancmg for waterworks and systems of
sewerage, and to estabhsh rates, fees, and charges therefore; and
WHEREAS, RCW 35 67 020 and RCW 35.92.020(2) authorize the City Council
to consider certain factors m classifying customers served or service and facilities
furnished by such system of sewerage, and
WHEREAS, the City Council has considered said factors; and
WHEREAS, the City Council finds that the cost to the system of extending
service and facilities to a lot m census tract 01, 02, 03, 05, 06, 07, 12, 13, 14, 15, 16 or
17, may be less than the cost to the system of extendmg service and facilities to other
areas, and
WHEREAS, the City Council fords that the character of service and facilities
furnished to a customer in census tract 01, 02, 03, 05, 06, 07, 12, 13, 14, 15, 16 or 17,
may differ from the character of service and facilities famished m other areas because
service and facilities m such tracts may be more effective in improving the function and
efficiency of the wastewater system, and
WHEREAS, the City Council finds and determines that the City's cost of
connectmg a lot within Zone 1 that is served by a collection system installed and paid for
by a developer other than the developer of the lot may be lower than the cost of servmg
other lots; and
WHEREAS, the City Council finds and determines that connection of lots within
Zone 1 to the system on or before December 31, 2005 may be more effective m
improving the function and efficiency of the wastewater system than connection at a later
date; and
WHEREAS, the City Council finds and determines that it is in the best interests of the
citizens of the City that ordmances related to such systems of sewerage, wastewater rates,
fees, charges, and related matters be amended as set forth in this Ordinance; and
WHEREAS, the City Council finds and determines that the rates, fees, and charges
contained m this Ordmance are fair, just and reasonable;
NOW, THEREFORE, BE IT ORDAINED BY THE CITY OF YAKIMA
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Page 1 of 13
Section 1. Section 7.58 010 of the Municipal Code reads as follows.
7.58.010 Purpose of chapter.
The purpose of this chapter is to allocate an equitable share of the cost of the existing
wastewater system ( "historic cost "), and a reasonable estimate of the actual cost of
connection (mcludmg costs associated with expanding the wastewater system) ( "actual
cost "), to persons who connect facilities to the wastewater system.
Section 2. Section 7.58 020 of the Municipal Code reads as follows.
7.58.020 Definitions.
Unless the context specifically mdicates otherwise, the meamng of terms in this chapter
shall be as follows:
1 "Collection pipes" mean those wastewater system pipes less than twelve inches in
diameter used to collect wastewater from adjacent properties' buildmg sewers.
2. "Collection pipe system" means a series of collection pipes extendmg from a common
connection pomt to a trunk/interceptor
3 "Discharge authorization" shall have the same meaning as in Chapter 7 65
4 "Discharger - industrial discharger or user" shall have the same meaning as m Chapter
7 65
5 "Domestic discharger or user" shall have the same meaning as m Chapter 7 65
6 "Domestic wastewater" shall have the same meaning as in Chapter 7 65
7 "Lot" shall have the same meaning as m Chapter 15 02.
8 "Lot area" shall have the same meaning as m Chapter 15 02.
9 "Low- or moderate -mcome facility owner" means a person who owns a smgle - family
residential facility and whose annual mcome is at or below eighty percent of the median
mcome of the Yakima metropolitan statistical area. Where more than one person has an
ownership interest in a residential facility, the term refers to those persons whose
combined annual income is at or below eighty percent of the median mcome of the
Yakima metropolitan statistical area. The median income of the Yakima metropolitan
statistical area shall be determmed by reference to data published by the Umted States
Department of Housing and Urban Development.
10 "Parcel" shall have the same meanmg as "lot."
11 "Parcel area" shall have the same meaning as "lot area."
12. "Sewer" shall have the same meamng as m Chapter 7 65
13 "SDU," "single dwellmg unit," "SFD" or "single- family dwellmg" shall all have the
same meaning as "dwelling, single- family" or "smgle - family dwellmg" m Chapter 15 02.
14 "Trunks /interceptors" mean those wastewater system pipes twelve inches or greater in
diameter, and related conduits, used to receive wastewater from collection pipes and
transport it to the wastewater treatment plant.
15 "Wastewater" shall have the same meaning as m Chapter 7 65 For purposes of this
chapter, "wastewater" does not mclude "food processing wastewater" defined in Chapter
7 12.
16. "Wastewater system" shall have the same meaning as "POTW" or "publicly owned
treatment works" m Chapter 7 65 and includes all sewers, pipes, and wastewater
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treatment plants. For purposes of this chapter, "wastewater system" does not include
"food processmg wastewater system" defined in Chapter 7 12.
17 "Wastewater treatment plant" shall have the same meamng as in Chapter 7 65 For
purposes of this chapter, "wastewater treatment plant" does not include "food processing
wastewater treatment plant" defined m Chapter 7 12.
18. "Water meter size" shall be determined by reference to the criteria m the Uniform
Plumbing Code or Uniform Building Code as the city may adopt from time to time,
provided that any facility not served by the city water division shall determme "water
meter size" by the criteria established m AWWA Manual M 22 Sizing Water Service
Lmes and Meters.
19 "Zone 1" means the area within the city limits of the city of Yakima at the time the
connection charge established by this chapter is paid.
20 "Zone 2" means the area withm the urban area established by the 1976 Agreement for
Wastewater Treatment and Disposal Service, as amended, excluding Zone 1
21 "Zone 3" means the area outside Zone 1 and Zone 2 but within the Yakima urban
growth area boundary, established by the 1997 Yakima urban area comprehensive plan,
as that boundary may be revised from time to time.
Section 3. Section 7.58.030 of the Municipal Code is amended to read as follows:
7.58.030 Connection to the wastewater system -- Connection charge imposed.
A. A connection charge is imposed on the owner of any facility to be connected to the
wastewater system when the owner of the facility to be so connected has not paid a
wastewater connection charge for connecting such facility to the wastewater system,
subject to the provisions below Payment of the connection charge does not convey any
ownership mterest m the wastewater system. Payment of the connection charge
authorizes connection only to the designated lot and is not transferable to any other lot.
B. The Wastewater Connection Charge for any facility located on a lot that has
participated m a local improvement district (L.I.D) for wastewater facilities and has fully
executed an Outside Utility Agreement, if applicable, shall not exceed that m effect at the
time the prehmmary assessment roll was passed, provided the Wastewater Connection
Charge is fully paid within one year of time the final assessment roll was passed,
provided however,
C. Within Zone 1 (inside City) the Wastewater Connection Charge shall be waived for
any residential umt(s) located on a parcel that has participated m a local improvement
district (LID) for wastewater facilities for which the Final Assessment Roll was passed
after May 3, 2005 The owners of such parcels remain obligated for all LID charges.
D The "Actual Cost" Collection element of the Wastewater Connection Charge for any
facility located on a lot within the boundaries of a local improvement district for
wastewater facilities that does not participate m said local improvement district shall be
the greater of the WCC established by the applicable Y.M.C. or the final assessment of
the LID plus interest.
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Section 4. Section 7.58 040 of the Municipal Code reads as follows:
7.58.040 Calculation of the wastewater connection charge.
A. The wastewater connection charge within Zones 1, 2, and 3 shall be calculated based
on information and rates existing at the time when payment will be made pursuant to
Section 7.58 080 or when a local improvement distract fmal assessment is authorized by
the city council. The connection charge within Zones 1, 2, and 3 shall be equal to the sum
of the following elements:
1 Base treatment plant charge (calculated pursuant to Section 7.58.050),
2. Base trunks/interceptors charge (calculated pursuant to Section 7.58.060),
3 Base collection pipes charge (calculated pursuant to Section 7 58.070),
4 City services charge m the amount of six (6 %) percent assessed on the sum of the first
three elements;
5 Administration charge m the amount of fifty ($50 00) dollars per lot, m addition to any
required mspection, permit, or plan review fees, and
6. Wastewater tax, and any other applicable tax, assessed on the sum of the first three
elements (pursuant to Chapter 7 64).
B. Charges to be Published. The city Code Admmistration and Planning Manager shall
maintain a schedule of current charges within Zones 1, 2, and 3, shall post such schedule
conspicuously, and shall make copies available to interested persons.
C. Initial Base Charges. Commencing on the effective date of the ordinance codified m
this chapter and until amended pursuant to subsection D of this section, wastewater
connection charges shall be based upon charges set by this chapter
D Amendment of Base Charges. The base charges set forth m this chapter may be
amended by ordinance of the city council. Such amendments shall become effective no
earher than thirty days after publication.
E. Connection charge for properties not within Zones 1, 2, and 3 Any person wishmg to
connect facilities located on property outside Zones 1, 2, and 3 shall contact the
wastewater manager Such properties may be connected only upon the written approval
of the city manager, and only upon payment of a connection fee established m an amount
sufficient to allocate to the applicant an equitable share of the cost of the existing
wastewater system and a reasonable estimate of the actual cost of connection (including
costs associated with expandmg the system).
Section 5. Section 7.58.050 of the Municipal Code is amended to read as follows.
7.58.050 Base treatment plant charge.
A. The base treatment plant charge includes both an equitable share of the cost of the
existing wastewater treatment plant ( "historic cost ") and a reasonable estimate of the
actual cost of connection to the wastewater treatment plant (including costs associated
with expanding the plant) ( "actual cost ")
B. For accounts discharging "domestic wastewater ", the amount of this charge is a
function of the amount of water flowmg to the facility to be connected and the zone m
which the facility is located. The treatment plant charge for smgle dwellmg umts (SDUs)
is uniform within each zone. The treatment plant charge for non - residential accounts shall
be determined by applying the unit cost listed below to the customer's authorized
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discharge flow No charge shall be imposed for any water meter mstalled for the sole
purpose of irrigation or fire flows. The base treatment plant charge for a particular facility
shall be determined by reference to the followmg chart:
DOMESTIC WASTEWATER
From Effective Date through Dec. 31, 2005
Category Zone 1 Zone 2 Zone 3
SDU $662.16 $662.16 $911.37
residential 2 -4 umts 529 73 per umt 529 73 per unit 729 10 per umt
80% of SDU per unit
residential 5+ umts 423 78 per umt 423 78 per umt 583.28 per unit
64% of SDU per unit
Non - residential
(per gallon) 2.498 2.498 3 437
From Jan. 1 to Dec. 31, 2006
Category Zone 1 Zone 2 Zone 3
SDU $682.02 $682.02 $938.71
residential 2 -4 units 545 62 per umt 545 62 per unit 750.97 per umt
residential 5+ units 436 50 per umt 436.50 per umt 600 78 per unit
Non - residential
(per gallon) 2.573 2.573 3.540
Effective Jan. 1, 2007
Category Zone 1 Zone 2 Zone 3
SDU $702.48 $702.48 $966 87
residential 2 - 4 units 561.99 per umt 561.99 per unit 773.50 per umt
residential 5+ umts 449 60 per umt 449 60 per unit 618 80 per umt
Non - residential
(per gallon) 2.650 2.650 3 646
C. For Non - residential Domestic Wastewater customers, the Base Treatment Plant
charges shall be established by the wastewater manager using the unit price listed above
and the amount of water (hydraulic flow), discharged by the facility as allowed by its
Discharge Authorization. Refer to YMC 7 65
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D For Non - domestic Discharger accounts, the amount of this charge is a function of the
amount of water (hydraulic flow), Biochemical Oxygen Demand (BOD), and Total
Suspended Solids (TSS) discharged by the facility as allowed by its Discharge
Authorization. Refer to YMC 7 65
NON- DOMESTIC WASTEWATER
From Effective Date through Dec. 31, 2005
Constituent Zone 1 Zone 2 Zone 3
Hydraulic (gal/ av
day -max mn) $0 456 $0 456 $0 628
BOD (lb /av day -max
mn) 421.30 421.30 609.30
TSS (lb /av day -max
mn) 344 08 344 08 509.24
Effective January 1 to December 31, 2006
Constituent Zone 1 Zone 2 Zone 3
Hydraulic (gal/ av
day -max mn) $0 470 $0 470 $0 647
BOD (lb /av day -max
mn) 433.94 433.94 627.58
TSS (lb /av day -max
mn) 354 40 354 40 524.52
Effective January 1, 2007
Constituent Zone 1 Zone 2 Zone 3
Hydraulic (gal/ av
day -max mn) $0 480 $0 480 $0 666
BOD (lb /av day -max
mn) 446.96 446.96 646.41
TSS (lb /av day -max
mn) 365 03 365 03 540.26
5/19/05
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Section 6. Section 7 58 060 of the Municipal Code is amended to read as follows:
7.58.060 Base trunk/interceptors charge.
A. The base trunks /interceptors charge mcludes both an equitable share of the cost of the
existing trunks /interceptors ( "hstonc cost ") and a reasonable estimate of the actual cost
of connection to the trunks /interceptors (includmg costs associated with expanding the
trunks /interceptors system) ( "actual cost "). This charge is the sum of two separate
calculations. The first calculation is a function of the size of the lot to be connected. The
"parcel size" portion of the base trunks /interceptors charge shall be detennined by
multiplymg the lot area (measured m square feet (sf)) by the rate given in Table A-
(Trunk/parcel size) for the zone m which the lot is located. The second calculation is a
function of the flow from each connection. The "flow" portion of the base
trunks /interceptors charge shall be determined by multiplymg the customer's authorized
flow (measured in gallons per day (gpd)) by the rate given in Table B- (Trunk/flow) for
the zone m which the lot is located.
B. The wastewater manager may waive the actual cost element of the base
trunks /interceptors charge if the lot owner or developer extends a trunk/interceptor from
the existing trunk/interceptor through or along the entire length of the lot as required by
the sewer comprehensive planning analysis for the area.
Table A- (Trunk/parcel size)
Times square feet
Zone 1 Zone 2 Zone 3
From Effective Histonc $0 006 $0 010 $0 020
Date through Actual 0 022 0 091 0 133
Dec. 31, 2005 Total 0 028 0 101 0 153
From Jan. 1 to Historic 0 006 0 010 0 021
Dec. 31, 2006 Actual 0 023 0 094 0 137
Total 0 029 0 104 0 158
Effective Jan. 1, Histonc 0 006 0 011 0 021
2007 Actual 0 023 0 097 0 141
Total 0 030 0 107 0 162
Table B- (Trunk/flow)
Times gallons per day
Zone 1 Zone 2 Zone 3
From Effective Historic $0 172 $0.235 $0.355
Date through Actual 0 853 4.308 6.954
Dec. 31, 2005 Total 1 025 4.543 7.309
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From Jan. 1 to Historic 0 177 0.242 0.366
Dec. 31, 2006 Actual 0 879 4 437 7 163
Total 1 056 4 679 7.528
Effective Jan. 1, Histonc 0 182 0.249 0.377
2007 Actual 0.905 4.570 7.377
Total 1 087 4.820 7 754
Section 7. Section 7.58 070 of the Mumcipal Code is amended to read as follows:
7.58.070 Base collection pipes charge.
A. The base collection pipes charge mcludes both an equitable share of the cost of the
existing collection pipes ( "historic cost ") and a reasonable estimate of the actual cost of
connection to the collection pipes (including costs associated with expanding the
collection pipes system) ( "actual cost ") This charge is the sum of two separate
calculations. The first calculation is a function of the size of the lot to be connected. The
"parcel size" portion of the collection pipe charge shall be determmed by multiplying the
lot area (measured m square feet (sf)) by the rate given m Table C- (Collection/parcel
size) for the zone m which the lot is located. The second calculation is a function of the
flow from each connection. The "flow" portion of the base collection pipe charge shall
be determined by multiplying the customer's authorized flow (measured m gallons per
day (gpd)) by the rate given m Table D- (Collection/flow) for the zone m which the lot is
located.
B. The wastewater manager may waive all or a portion of the actual cost element of the
base collection pipes charge if: (a) the lot is served by a collection pipe system installed
and paid for by the developer of the lot; (b) the lot owner extends a collection pipe from
the existing collection pipe system through or along the entire length of the lot as
required by the sewer comprehensive planning analysis for the area, (c) the lot is
connected to a collection pipe system ongmally financed by local improvement distract
assessments to which contribution was made for the lot; or (d) within Zone 1, the lot is
served by an existmg collection pipe system installed by the City or other governmental
agency and is within City of Yakima census tract: 01, 02, 03, 05, 06, 07, 12, 13, 14, 15,
16 or 17
C. Within Zone 1, the wastewater manager may waive fifty percent (50 %) of the actual
cost element of the base collection pipes charge if the lot is served by a collection pipe
system installed and paid for by a developer other than the developer of the lot.
D From the effective date through December 31, 2005, within Zone 1, the wastewater
manager may waive seventy -five percent (75 %) of the actual cost element of the base
collection pipes charge if the lot is served by a collection pipe system installed and paid
for by a developer other than the developer of the lot.
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Table C- (Collection /parcel size)
Times square feet
Zone 1 Zone 2 Zone 3
From Effective Historic $0 032 $0 016 $0 002
Date through Actual 0.310 0.310 0.310
Dec. 31, 2005 Total 0.342 0.326 0.312
From Jan. 1 to Histonc 0 033 0 016 0 002
Dec. 31, 2006 Actual 0.319 0.319 0.319
Total 0.352 0.336 0.321
Effective Jan. 1, Historic 0 034 0 017 0 002
2007 Actual 0.329 0.329 0.329
Total 0.363 0.346 0.331
Table D- (Collection /flow)
Times gallons per day
Zone 1 Zone 2 Zone 3
From Effective Histonc $1 065 $0.355 $0 037
Date through Actual 10.355 10.355 10.355
Dec. 31, 2005 Total 11 420 10 710 10.392
From Jan. 1 to Historic 1 097 0.366 0 038
Dec. 31, 2006 Actual 10 666 10 666 10 666
Total 11 763 11 031 10 704
Effective Jan. 1, Historic 1 130 0.377 0 039
2007 Actual 10.986 10 986 10.986
Total 12.115 11.362 11 025
Section 8. Section 7.58 075 of the Municipal Code is amended to read as follows:
7.58.075 Maximum lot size.
A. For single- dwelling umts, a maximum parcel size of twelve thousand square feet
(12,000 sf) shall be utilized m calculating charges under Sections 7 58.060 and 7.58.070
B For facilities other than smgle - dwellmg umts (i.e. multi -umt residential, industrial or
commercial facilities), the maximum parcel size utilized m calculating charges under
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Sections 7.58 060 and 7.58 070 shall be of the greater of fifty thousand square feet
(50,000 sf) or one hundred -ten percent (110 %) of the footprint of the connected
buildmgs.
Section 9. Section 7.58 080 of the Mumcipal Code reads as follows.
7.58.080 Time of payments -- Lien -- Suspension of service.
A. For Domestic Dischargers, wastewater connection charges shall be paid m full at or
before the time a side sewer permit is obtamed.
B For Non - Domestic Dischargers, wastewater connection charges, based upon their
initial Discharge Authorization, shall be paid m full at or before the time a side sewer
permit is obtained. Any fees due from recalculation of charges (7.58 090) shall be paid
withm thirty (30) days of receiving notice. Unpaid charges shall constitute a lien against
the connected property Such lien shall be prior to all hens and encumbrances filed
subsequent to its filmg with the county auditor, except the hen of general taxes and local
improvement assessments whether levied prior or subsequent thereto
Section 10. Section 7 58 085 of the Municipal Code reads as follows.
7.58.085 Alternative, periodic payment method.
A. At any time prior to connection of a facility to the wastewater system, the owner of
that facility may apply to the code administration and planning division for periodic
payment of the applicable connection charge, provided that: (1) the facility owner is a
low- or moderate -mcome facility owner; (2) the facility is the facility owner's primary
and legal residence; (3) a certificate of occupancy has been issued for the facility and that
certificate remams valid, (4) the facility is connected to a pnvate septic system or some
system of sewerage other than the wastewater system; and (5) the connection charge
apphcable to the facility is equal to or greater than one thousand ($1,000) dollars. This
periodic payment method shall be an alternative to payment of the full connection charge
prior to connection pursuant to YMC 7.58.080(A)
B. To apply for the periodic payment method provided by this section, the facility owner
must execute a request form to be provided by the code administration and planning
division. The request form shall be in the form of a contract between the facility owner
and the city, and the general form of the request form shall be approved by the city
attorney and city manager
C. At the time of delivery to the facility owner, the request form shall state the amount of
the apphcable connection charge and the number and amount of quarterly payments. The
code administration and planning division shall determine the amount of the connection
charge by reference to Sections 7.58.040 through 7.58 090. The code administration and
planning division shall also calculate a substantially equal, quarterly payment amount
sufficient to pay the entire principal amount of the connection charge, together with
interest thereon at an annual interest rate equal to the prime rate as quoted in the Wall
Street Journal on the last busmess day of the month precedmg preparation and delivery of
the request form to the facility owner, within three years of the date of connection if the
applicable connection charge is less than or equal to five thousand ($5,000) dollars, or
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withm five (5) years of the date of connection if the applicable connection charge is more
than five thousand ($5,000) dollars. The first quarterly payment shall be due three (3)
months after the date of connection.
D The facility owner shall provide the remammg information required by the request
form and execute the request form.
E. The city shall not accept or execute the origmal or any updated request form unless:
(1) the facility owner qualifies as a low- or moderate -mcome facility owner; (2) the form
is first executed by the facility owner; (3) the applicable connection charge has not
changed from that stated on the request form, (4) the prime rate as quoted m the Wall
Street Journal on the last busmess day of the month precedmg presentation of the
executed Request Form by the facility owner has not changed, and (5) the facility owner
has paid a one hundred ($100) dollar administrative fee for processing the request form
and admmistermg the mstallment payment program.
F If either the applicable connection charge or the prime rate as quoted in the Wall Street
Journal on the last business day of the month preceding presentation of the executed
request form by the facility owner has changed, the city Code Administration and
Planning Manager shall revise the terms and quarterly payment amount to reflect such
changes, and shall return an updated request form to the facility owner, who may execute
the updated request form and return it to the city Code Administration and Plannmg
Manager for acceptance and execution by the city
G Once the city has executed the request form, the connection charge, interest rate, and
periodic payments applicable to the subject property shall not be changed from that
amount stated in the request form for a period of ninety (90) days from the date of final
execution by the city In the event that the facility owner fails to complete the connection
within ninety (90) days from the date of final execution by the city, the facility owner
must request, complete, and submit a new request form, which shall be subject to the
requirements of this section.
H. Nothing m this section shall be construed to hmit the city's authority to collect any
delmquent connection charge payment or payments, including the city's authority to
impose a lien or shut off water service as provided m Chapter 35 67 RCW For purposes
of a lien imposed pursuant to Chapter 35 67 RCW, any delinquency of four quarterly
payments shall constitute a delinquency of one year's charges subject to a sewerage hen
and that lien shall be effective without the necessity of any wrrtmg or recordmg of the
hen.
Section 11. Section 7.58 090 of the Municipal Code is amended to read as follows:
7.58.090 Recalculation of charges.
A. Improvement, Change m Use. In the event any Domestic facility, lot, tract or parcel is
improved, or the use thereof or discharge therefrom is changed or intensified, then the
amount of the connection charge is subject to recalculation and mcrease according to
Sections 7.58 040 through 7.58.075 Credit shall be allowed for the previously
established flow, provided that, m no case shall the credit exceed the cost of the charge.
Any such increase shall be paid m the time and manner specified by Section 7.58 080 A
parcel for which the Capital Cost Recovery Charge (CCRC) has been paid or that has
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participated m an LID but has not yet connected to the wastewater system shall be
credited with the current value of a Single Dwelling Umt (SDU) connection.
B Additional Subdivision of Lots. At such time that any existmg lot connected to the
wastewater system is subdivided, a wastewater connection charge shall be assessed
against each new lot formed. No additional charge shall be imposed upon the lot where
the facilities that were onginally connected are located, unless an mcrease m flow or
intensity of use is involved. Any additional charges due as a result of subdivision shall be
determined as set forth m subsection A of this section and shall be paid m the time and
manner specified m Section 7.58 080
C. Altered Discharge. In the event discharge from any Non - domestic facility, lot, tract or
parcel is altered, or the use thereof is changed or intensified then the amount of the
applicable wastewater connection charge is subject to recalculation accordmg to Sections
7.58 040 through 7.58.075 Credit shall be allowed for the facility's existmg Authorized
or Permitted Discharge, provided that in no case shall the credit exceed the cost of the
recalculated charge. Any such increase shall be paid in the time and manner specified by
Section 7.58 080.B. As an additional and concurrent method of collection of any such
delmquent wastewater connection charges, the customer service manager may suspend
the water service or supply to the premises under the same authority provided m Section
7 60.100
Section 12. Section 7.58 095 of the Municipal Code reads as follows:
7.58.095 Reimbursable Agreements.
Wastewater reimbursable agreements may be available to an owner of newly connecting
wastewater facilities when such owner, as determined by the City Engineer, builds
collection and/or trunks /interceptors infrastructure that both conforms to the Wastewater
Comprehensive Plan and also provides collection and/or trunks/interceptor facilities that
are m excess of the facilities required to serve the owner's facilities. Reimbursable
agreements shall provide for payment to the owner of a fair pro rata share of the cost of
facilities that are m excess of the facilities needed to serve the owner's facilities. Any
such payment will be derived from connection fees paid by any owner of real estate who
did not contribute to the initial owner's ongmal cost of such wastewater facilities but who
subsequently taps into or uses such facilities. The terms and conditions of any proposed
reimbursable agreement must be established prior to the construction of a project and are
subject to review and approval by the City Council. The duration of a reimbursable
agreement shall not exceed fifteen (15) years.
Section 13. Section 7.58.100 of the Municipal Code reads as follows:
7.58.100 Money to be credited to wastewater operating fund.
All moneys collected pursuant to this chapter shall be paid into and credited to the
wastewater operating fund as provided in Chapter 3 101
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Section 14. This ordmance shall be m full force and effect 30 days after its passage,
approval, and publication as provided by law and by the City Charter A certified copy of
this ordinance shall be recorded by the clerk of the City Council m the office of the
Yakima County Auditor
PASSED BY THE CITY COUNCIL at a regular meeting and signed and
approved this 17th day of May , 2005.
Paul P George, Mayor
ATTEST
City Clerk
Publication Date: 5/20/05
Effective Date: 6/19/05
5/19/05
Page 13 of 13
BUSINESS OF THE CITY COUNCIL
YAKIMA, WASHINGTON
AGENDA STATEMENT
Item No. I Le
For Meeting Of 5 -17 -05
ITEM TITLE Reconsideration of Ordinances A) Revising Wastewater Connection
Rates and Charges; B) Revising Wastewater Rates and Charges, and C)
Resolution of Vickers claim for refund of connection charges
SUBMITTED BY Doug Mayo / Wastewater Division Manager
CONTACT PERSON/TELEPHONE Doug Mayo / 575 -6077
SUMMARY EXPLANATION
Council members Bonlender and McClure have requested that this issue from the Council
meeting of May 3, 2005 be re- submitted for possible reconsideration Per Council rules, after a
vote on any motion, any council member voting on the prevailing side of the motion (in this
case, Council Members Bonlender, Place, Sims and Whitman) may move for reconsideration
of the item
Please see the attached Documents from Council Meeting of May 3, 2005 Staff is also
requesting direction from Council on a request from Katrina Vickers for a refund of a portion of
the connection charge she paid
Future Study:
Council has requested staff study the feasibility of implementing a time payment plan for
Wastewater Connection Charges. That study is not yet ready That study will be made and
brought to Council for consideration at a later date
( continued )
Resolution _Ordinance 2 Contract _Other (Specify) —
Funding Source Revenues from this program are directed to the wastewater operating
fund (473). From there they are allocated to either the wastewater collection system project
fund (476) or the wastewater facilities project fund (478)
APPROVED FOR SUBMITTAL.
City Mana r
STAFF RECOMMENDATION
Staff respectfully requests that the City Council
1) Move for reconsideration, and if it passes;
2) Pass the attached ordinance (7 58) supplementing and clarifying the wastewater
connection rates and charges, and
3) Pass the attached ordinance (7 60) revising the wastewater service rates and charges.
4) Provide direction regarding Katrina Vickers request for a partial refund of connection
charges
COUNCIL ACTION * * SEE NEXT PAGE FOR THE DETAILS OF COUNCIL ACTION * *
As discussed in the Transmittal Memo of April 19, 2005, and during the Council meeting of
May 3, 2005, the following supplements and clarifications to the Wastewater Connection
Charge Study were identified by Council to be addressed by amendments to legislation
Ordinance amending YMC Section 7 58 deals with items 1 -5, supplements and clarifications to
the Wastewater Connection Charge
1) Adopt Option 1, a 50% reduction of the actual collection sub - element of the WCC for Zone
1 (inside City) new customers.
2a) Adjust the maximum parcel size utilized in calculating WCCs for single dwelling units to
12,000 sq ft.
2b) Adjust the maximum parcel size utilized in calculating WCCs for development other than
single dwelling units to the greater of 50,000 sq ft. or 110% of the connected building
footprint.
3) Waive the entire WCC for Zone 1 (inside City) parcels that participate in new LIDs. They
would still be responsible for all LID charges.
4) Treat collection systems financed by governmental agencies within certain census tracts on
the same basis as a developer extension serving the area for purposes of calculating
waivers from a portion of the actual collection sub- element of the WCC
5) Clarify that the calculation of an WCC for parcels for which the CCRC has been paid or that
has participated in an LID but has yet to connect to the wastewater system shall be
credited with the current value of a single dwelling unit connection
Ordinance amending YMC Section 7 60 deals with item #6, adjusts wastewater service rates
and charges.
6) In order to maintain revenue, the adoption of the above recommendations will require a
2.5% increase of monthly service charges to all to Zone 1 (inside City) retail customers.
COUNCIL ACTION:
A) Council voted to reconsider this issue.
B) The Ordinance was passed as amended to adjust the fees m two steps. (1)
lower actual collection element to 25% of 12/04 increase thru 12/31/05, (2)
effective 1/1/06 , lower actual collection element to 50% of 12/04 increase
ORDINANCE NO. 2005-22
C) Initiate the 2.5% rate increase for all City retail customers.
Ordinance adopted. ORDINANCE NO. 2005-23
D) No action was necessary by Council, the applicant (Vickers) may withdraw
her application and reapply after the lower rates are in effect.
BUSINESS OF THE CITY COUNCIL
YAKIMA, WASHINGTON
FOR MAY 17, 2005
COUNCIL DISCUSSION
ITEM TITLE. Possible remedies for Katrina Vickers issue
Distribution limited to Honorable Mayor and Members of the City Council
Dick Zais, City Manager
Ray Paolella, City Attorney
Please refer to the enclosed Memorandum from legal counsel
OPTIONS
1) Maintain status quo
2) Rescind the current agreement for Wastewater Connection that is yet
unfulfilled The customer could then again apply at the revised rates
3) Customer could file a claim for the disputed amount based on the
December 2004 rates, and the City could consider whether the claimed
damage amount would be appropriate as an offset against the connection
fee
Recommendation This is a Council policy decision
WCC alternative
May 2005
Preston lGates!Ellis LLP
MEMORANDUM
i
TO Ray Paolella
Doug Mayo
FROM Elizabeth Thomas
DATE: May 12, 2005
SUBJECT Date for Determination of Connection Fees
Question Presented
As of what date should a connection fee be determined for a customer who is told by a city that
the fee for connection is a certain amount, but the customer does not actually apply for
connection until after the amount of the connection fee has been changed by ordinance?
Brief Answer
The customer must pay the fee that is due either at the time the customer applies or the time the
customer seeks to connect to the system. The amount quoted to the customer under a prior rate
schedule is not sufficient.
Discussion
The City of Yakima has established connection fees designed to provide funds sufficient to cover
its anticipated costs of system expansion In the aggregate, connection fees are set at levels
sufficient to cover the system expansion costs calculated in the City's wastewater facilities plan
See YMC 7.58 010 Connection charges are premised on cost of service They are tailored to a
property's location within one of three zones, and have separate elements for each of three parts
of the wastewater system — treatment plant, trunks, and collection pipes — as well as specified
City services charges, engmeenng charges, and taxes YMC 7 58 040.A.
YMC 7 58 080.A addresses the timing of payment of connection fees "Wastewater connection
charges shall be paid in full at or before the time a side sewer penult is obtained." The City has
no obligation to allow a customer to pre -pay a connection fee in order to make payment before
new fees go into effect. Landmark Dev , Inc v City of Roy, 138 Wn.2d 561, 573, 980 P.2d 1234
(1999) (under RCW 35 92 025, (city was authorized to require payment of the connection fee in
effect at the time of connection, and developer had no nght to prepay fee at a lower rate) A
A LAW FIRM I A LIMITED LIABILITY PARTNERSHIP INCLUDING OTHER LIMITED LIABILITY ENTITIES
.925 FOURTH AVENUE SUITE 2900 SEATTLE, WA 98104 -1158 TEL. (2061 623 -7580 FAX. (2061 623 -7022 WWW.PRESTONGATES.COM
Anchorage Beijing Coeur d'Alene Hong Kong Orange County Portland San Francisco Seattle Spokane Taipei Washington, DC
MEMORANDUM
May 12, 2005
Page 2
customer does not have a vested right to pay the connection fee that was in place at the time
inquiries were made but pnor to the filing of an application, despite conversations with the
municipal utility regarding connection fees and other matters relating to service Irvin Water
District No 6 v Jackson Partnership, 109 Wn. App 113 (Div 3 2001) (rejecting arguments of
entitlement to a lower pnor fee based on theories of vesting, implied contract, promissory
estoppel, equitable estoppel and waiver)
The connection charge ordinance requires imposition of posted charges and does not make any
provision for adjusting charges to allow for payment of any charges other than those specified.
YMC 7 58 040.B Under the filed rate doctnne, it is doubtful that the City could impose charges
different from those specified by ordinance See, e.g , Hardy v Claircom Communications
Group, Inc , 86 Wn. App 488, 490 -95, 937 P.2d 1128 (1997) (purpose of the filed rate doctnne
is to ensure that regulated entities charge only those rates that are approved by law)
A long line of cases establishes that a utility cannot retroactively change the rates that apply to a
particular customer See, e.g , Arizona Grocery Co v Atchison, Topeka & Santa Fe Ry , 284
U S 370, 52 S Ct. 183 (1932), Maislin Industries, U S v Prainary Steel, Inc , 497 U S 116,
127 -131, 110 S Ct. 2739, 2766 -68 (1990) The prohibition against retroactive ratemaking is
based in part upon concerns about rate discrimination See Maislin, 110 S Ct. at 2768 Indeed, a
municipal utility must comply stnctly with its rate schedule and even collect past undercharges
to avoid the discnmination associated with retroactive ratemaking and to avoid concerns
regarding gifts of public funds. See Housing Authority of King County v Northeast Lake
Washington Sewer and Water Dist., 56 Wn. App 589, 595 and Wash. Const. Art. VIII § 7
(prohibiting municipal corporations from making gifts, and from lending money or credit to
private entities)
Withdrawal and resubmission of application
In the event that connection fees are trending downward, we believe the City could allow a
customer that has not yet connected to the system to withdraw an application and could then
provide a refund of amounts paid, provided that all similarly situated customers may follow the
same procedure In effect, with the withdrawal and refund, the City would be agreeing to rescind
its agreement with the customer regarding connection to the wastewater system The customer
could then reapply, and the applicable fee would be the fee then in effect.
Resolution of disputed claim
Like other disputes, disputes relating to damages that a customer allegedly suffers as a result of
alleged improper action relating to city utilities may be the subject of a claim. The City would
have its usual authority to resolve a disputed claim. In connection with any dispute, however,
the City should not change the amount of the connection fee, it should simply offset against the
connection fee whatever damage amount is determined appropriate
I Overruled on other grounds by Tenore v AT & T Wireless Services, 136 Wn.2d 322, 962 P.2d 104 (1998)
MEMORANDUM
May 12, 2005
Page 3
Conclusion
The City may not allow a customer to pay a rate that was no longer in effect when the customer
filed an application or when payment was made The City may, however, allow the customer to
withdraw the application and refund the fee already paid, with the understanding that if the
customer still wishes to connect, the customer may file a new application and be subject to
whatever rates are in effect at that time
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