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HomeMy WebLinkAbout2005-023 Adjustment of Wastewater Rates, Fees, Charges; YMC Amendment ORDINANCE NO 2005- 23 AN ORDINANCE relating to wastewater rates, fees, and charges; adjusting various wastewater rates, fees, and charges, amending Sections 7 60 020 of the Yakima Mumcipal 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 financmg for waterworks and systems of sewerage, and to estabhsh rates, fees, and charges therefore; and WHEREAS, the City Council determines that it is m the best interests of the citizens of the City that ordinances 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 determines that the rates, fees, and charges contamed m this Ordmance are fair, just, and reasonable; NOW, THEREFORE, BE IT ORDAINED BY THE CITY OF YAIUMA Section 1. Section 7 60 020 of the Mumcipal Code is hereby amended to read as follows. 7.60.020 Owner (inside city) retail wastewater service charge. A. Wastewater Service Charge. There shall be charged to and collected from all premises within the city served by the city wastewater system a wastewater service charge composed of a ready -to -serve charge and a volume charge based on either the quantity of water supphed to the premises or, if metered, the quantity of wastewater discharged mto the wastewater sewer system, PROVIDED that m no event shall the total wastewater service charge be less than the minimum charge indicated below Minimum charge effective June 20, 2005 $13.34 /month 1 MAY 2005 RATE ORDINANCE (1) Wastewater Service Charge -- Schedules. The wastewater service charge shall be calculated and charged accordmg to the followmg schedules. (a) Ready -to -Serve Charges. For all customers other than multiple- unit residential customers. Charges effective June 20, 2005 Water Meter Bimonthly charge Size (Inches) Monthly charge 3/4 $13.34 $26 68 1 16.94 33 88 1 -1/2 21 88 43 76 2 35.22 70 44 3 133 40 266 80 4 169 82 339 64 6 254 79 509.58 8 351 64 703.28 10 703.28 1,406.56 For multiple -unit residential customers, the monthly ready -to -serve charge shall be based on the number of accounts plus the number of dwelling units, accordmg to the followmg: Ready -to -serve charge effective June 20, 2005 (6.94 /account) + ($6 40 /dwelling unit) (b) Volume Charge For all customers, the volume charge shall be determined by the following Volume charge effective June 20, 2005 $2.34 per 100 cubic ft of water consumption or, if metered, quantity discharged B Strong Waste Surcharge. For customers located mside the city discharging wastewater which contams more than three hundred parts per million of biochemical oxygen demand (BOD) and/or total suspended sohds (TSS), there shall be a surcharge, m addition to the ready -to -serve charge and the volume charge, which shall be calculated utilizmg the national average values of BOD and TSS concentrations typical to each classification under the Standard Industrial Code or 2 MAY 2005 RATE ORDINANCE by actual concentrations verified by the city If the customer chooses, at its expense, to install a sampling station, the strong waste charge shall be calculated based upon actual concentrations. Any testmg done by the city may be charged at the rates set forth m section 7 60 105 of this title. The followmg formula shall be utilized to calculate the strong waste charge Monthly surcharge = (unit costs per pound of BOD or TSS) times (weight of one gallon of water) times (customer's monthly volume m one hundred cubic feet divided by one thousand three hundred thirty- seven) times (customer's concentration of BOD or TSS m parts per million per [the national average values] or [verified concentrations] mmus three hundred) In the foregomg formula, the applicable values are as follows. Effective Effective Effective Effective Nov 10, January 1, January 1, January 1, 2003 2004 2005 2006 Umt cost per pound for $0.294 $0.312 $0.332 $0.332 BOD Unit cost per pound for $0.241 $0.286 $0.339 $0.339 TSS Weight of one gallon of 8.34 8.34 8.34 8.34 water pounds pounds pounds pounds Section 2. This ordmance shall be m full force and effect (30) calendar 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 17th day of May, 2005 IL/ Paul George, Mayo ATTEST City Clerk Publication Date: 5/17/05 Effective Date: 6/19/05 3 MAY 2005 RATE ORDINANCE ci CA II oo E ... u .., . , vii • Pli an I ... 11 ,•••I'' , f. - a a ai .... -..,,,,,, ,4 _c• gt ,,,7 > I 03 10 . c Iniat i 1 1 ■ 6 ' U • (4) :: = 4" 2 C! c 6) I . 1 . . . - 1 “I ;iii _ .. _. _...,,!.,1,.. . c , . , .._., - - -, • ,---, 11 -, ; , I -;, •.,•'—' zi ! ,.. _11-1-1 1 IiiTufilipful 1 $ r% ---1 _ 1 i , -.11 - I - . t ,.... , - t --' !—,../ t :. . . • .,, . H, . .. -- 1 _ 1 ■■ '1 11 ..• ..• I j , t ' - - 1 -i •-'-" - a irr 1 •=` 1--r"rz 2 1 Ii•i--0 i 1 • _ "7' R-"-- • -t. --! ..... 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''''.;;.'" 16-1 'r:--- 1 il i . 1r -. - ‘ . c ;a ', ii `•0 r 7'7'1 ‘,..F-.., I 1 41:1 7 .1 , r4;7 1 d i fig i ; :i c — . - • , • ,... , , rfthrrII .,_ I i ' i 'L' s '1 If - 4, 1 tr - r.1 .4.7- -.-• , ..r. t,....„ ! 1 .V. 1:1 — - „:: . 1 .-- '.'"IIIII ji_:,!1-. ' ; . — . - BUSINESS OF THE CITY COUNCIL YAKIMA, WASHINGTON AGENDA STATEMENT Item No. t For Meeting Of 4 -19 -05 ITEM TITLE. Consideration of Proposed Supplementations and Clarifications to the Wastewater Connection Charge Study, Potential Related Revisions to Wastewater Connection Charges, and to Wastewater Service Rates and Charges SUBMITTED BY Doug Mayo CONTACT PERSON/TELEPHONE: Doug Mayo / 575 -6077 SUMMARY EXPLANATION Please see the attached Transmittal Memo Requested Action Staff requests Council set a date of public hearing regarding proposed changes to the wastewater connection rates and charges and to the wastewater service rates and charges Staff requests direction regarding the preparation of legislation to implement the Council's preferences among the recommendations in this report and the accompanying wastewater service charge rate increase Resolution _ Ordinance _ Contract _ Other (Specify) Funding Source APPROVAL FOR SUBMITTAL. City Manager STAFF RECOMMENDATION See requested action above. 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 govemmental 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 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: BUSINESS OF THE CITY COUNCIL YAKIMA, WASHINGTON TRANSMITTAL MEMO FOR APRIL 19, 2005 COUNCIL DISCUSSION ITEM TITLE. Proposed Supplementations and Clarifications to the Wastewater Connection Charge (WCC) Study, Potential Related Revisions to Wastewater Connection Charges, and to Wastewater Service Rates and Charges SUBMITTED BY Dick Zais, City Manager Doug Mayo, Wastewater Division Manager CONTACT PERSON /TELEPHONE. Doug Mayo /575 -6077 SUMMARY EXPLANATION Under current City policy, costs for capital improvements that are driven by regulations and renewal /safety are included in the monthly wastewater service charges Costs card by growth are allocated to the new customers through the Wastewater Connection Charge (WCC). The City of Yakima has charged a fee for new Wastewater connections for many years Long standing council policy has directed there be minimal subsidy of future growth by the existing ratepayers. The existing Connection charges, which became effective December 22, 2004, were established following the policy of "growth pays for growth" The WCC is comprised of two parts that contribute to the Wastewater revenue stream. 1) The equitable share of existing facilities ("Historic Cost") element of this charge is the method through which the City is partially reimbursed for prior investments made toonstruct existing wastewater facilities to be used by new customers. 2) The actual (including future) connection costs element of this charge is the element through which the City generates the revenue necessary to construct new .. -.. - • - • • . •uu••. - I- .•• ' • •l. .. - - .0 •u new customers. WCC discussion Page 1 April 2005 Since the enactment of the current schedule of connection charges and rates, there has been discussion among Council members and the community that perhaps Council should revisit their policy of "growth pays for growth" A revised policy option that Council could consider would provide that general inside City ratepayers help cover the costs of adding new connections (growth) within the City limits. This would allow in -City connection fees to be lower, which in turn could promote infill and annexation. Both are basic goals of the Growth Management Act. •- 1 -, 11 -1 .•. • - '•• -•• - • .- -.• • . 11 11 ... - - . .0 ' . • . . II .1 - - . • • 11111 • - 11 11 • - • . 'II • 11.. ••'' .• . •• . '• - 11-• • - - • •••- .• -- - - - • 2.' - • • - ••-•. •• '•• 11 .- •• ••- -. • • '• '•. •- monthly retail rates to offset the revenue shortfall. After informal discussions with Council members, staff, and the public, we offer the following issues for discussion and possible action 1) Reduction of the `actual collection' element of the Wastewater Connection Charge for Zone 1 (inside city) new customers. 2) Adjust the maximum parcel size utilized in calculating WCCs. 3) Partial Waivers of WCCs for new Zone 1 (inside city) Local Improvement Districts (LIDs) 4) Treatment of governmentally financed pipe installations as developer installed 5) Previously paid Capital Cost Recovery Charge (CCRC), or LID participation 1) Actual ('ollection Element; The Wastewater Connection Charge consists of three major elements: Treatment, Trunkage, and Collection. Each of these elements is further divided into a "historic" and "actual" sub - element. The "actual collection" sub - element of the WCC is waived for any parcel that either participated in an LID or was part of a development that built its own sewer infrastructure Following is the previous (2004) and existing (2005) WCC for a single dwelling unit (SDU) on a 9,000 square foot City lot, assuming no waivers apply WCC discussion Page 2 April 2005 Fiement 2004 700S increase Treatment $627 32 $662.16 $ 34.84 Trunkage Historic $ 99 00 $ 99 58 $ 58 Actual $252.00 $424 05 $172.05 Collection Historic $ 441.00 $ 570.23 $ 129.23 Actual $ 306.00 $5,534.08 $5,228.08 City Services* $345 06 $1,458.02 $1,112.96 Process Fee $ 25.00 $ 50.00 $ 25.00 Total $2,095.38 $8,798.12 $6,707.74 *City Services includes 6% City Services and 14% Utility Tax Clearly, the great majority of the total increase resulted from the increase to the "Actual Collection" sub - element, which affected about 20% of the new customers. There is concern that the increase for these customers may have been too great in Tight of various City policies and we have been requested to prepare options for Council discussion We herein present, for discussion, the existing rate structure plus two options that would modify the WCC and monthly service rates in the existing Zone 1 (inside City) Existing: no reduction of the Actual Collection WCC sub - element, 0.0% of $5,534.08 = $0 00 City services = ft 0.00 Reduction /subsidy $0.00 Existing Wastewater Connection Charge = $8,798.12 Required general in - City rate increase NONF Option 1 reduce the Actual Collection sub - element of the WCC by 50 %; 50% of $5,534.08 = $2,767.04 City services = $ 553.41 Reduction /subsidy $3,320.45 WCC discussion Page 3 April 2005 Revised Wastewater Connection Charge = $5,477.67 Required general in - City monthly rate increases.% A 1.5% rate increase would generate approximately $170,000 and cost the average City residential customer approximately $0.57 per month. Option 2 eliminate the Actual Collection sub - element of the WCC, 100% of $5,534.08 = $5,534.08 City services = $1,106_82 Reduction /subsidy $6,640.90 Revised Wastewater Connection Charge = $2,1 57.22 Required general in - City monthly rate increase 3.0% A 3.0% rate increase would generate approximately $340,000 and cost the average City residential customer approximately $1 14 per month. Recommendation, If Council chooses to revise its existing policy of "growth pays for growth ", staff recommends adoption of Option 1. Under Option 1, those Zone 1 (inside City) parcels, which were not part of a development that installed the collection system to be used by that parcel (Le., those parcels that are not subject to the waiver) would be assessed only one -half (1/2) of the current rate for the Actual Collection sub - element of the Wastewater Connection Charge. 2) Adjust the maximum parcel size utilized in calculating WCCs. Concern has been raised with the large fees associated with large parcels containing an existing single dwelling units wishing or needing wastewater service. The current code sets an upper limit of 20,000 square feet to be used in calculations. This may produce significant fees for existing homes on parcels yet to be subdivided Additional fees would be collected after subdivision when additional dwellings receive service. Concern has also been raised on fees charged to other development (multi -unit residential and commercial) on large parcels. There is currently no upper limit on size used for calculation Recommendation- Staff recommends the maximum parcel size to be utilized in calculations for Single Dwelling Units (SDUs) be amended to 12,000 square feet in all Zones. WCC discussion Page 4 April 2005 Staff also recommends that for all Zones the maximum parcel size to be utilized for WCC calculations for development other than SDUs (multi -unit residential or commercial) be the greater of 50,000 square feet or 1 10% of the footprint of the connected buildings 3) Partial Waivers for new Local Improvement Districts (LIDs) Under the present policy, in -City parcels participating in a new LID are assessed 100% of their proportionate share of the LID cost The LID cost is the actual construction cost to install the pipe in the street along the parcel This cost may vary from under $6,000 to over $15,000 per parcel In addition, in -City parcels are charged the treatment, trunkage, and historical collection elements of the WCC. Recommendation, In light of the potential modification of Council policy, we offer an option for discussion that the entire WCC be waived for Zone 1 (inside City) parcels that participate in new LIDs. Note. Parcels choosing to "opt out" of an LID would be required to pay the full LID charge plus interest plus the WCC treatment, trunkage, and historical collection elements upon connection. u• - ii - e . •a • •• •• '•• . • • - • • - .1 . I -. - • 0, • 11.1 1 - - • all in -City retail customers. A 1 0% rate increase would generate approximately $1 13,000 and cost the average City residential customer approximately $0.38 per month. 4) Treatment of governmentally financed collection pipe installations as developer - installed. Wastewater Division staff believes that the character of service and facilities furnished to a customer in census tracts 01, 02, 03, 05, 06, 07, or 12, may differ from the character of service and facilities furnished in other areas because service and facilities in such tracts could be more effective in improving the function and efficiency of the wastewater system. This is true in part because each additional connection will increase the total monthly service fees collected from areas in which the Division has already invested. Accordingly, it would be in the best financial interest of the Wastewater Division to support connection within WCC discussion Page 5 April 2005 these areas Therefore, within these census tracts, for the purpose of calculating Wastewater Connection Charges, collection systems financed by governmental agencies could be treated 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. Recommendation. In Tight of the potential shift in Council policy, we recommend adoption of this policy option. Note If Council adopts Option 2 of part 1, this issue is moot 5) Previously paid Capital Cost Recovery Charge (CCRC), or LID participation. Staff wishes to clarify that the calculation of any 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 (SDU) connection. Recommendation Staff recommends the approval of this clarification. SUMMARY of RECOMMENDATIONS. 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 (SDUs) to 12,000 square feet. 2b) Adjust the maximum parcel size utilized in calculating WCCs for development other than Single Dwelling Units (SDUs) to the greater of 50,000 square feet or 1 10% 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. WCC discussion Page 6 April 2005 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 any 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 (SDU) connection. 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. A 2 5% rate increase would generate approximately $283,000 and cost the average City residential customer approximately $0 95 per month The Toss of this revenue would adversely affect the Wastewater Division's ability to continue investment in infrastructure required to accommodate growth and development within the community, REQUESTED ACTION Staff requests Council set the date for a Public Hearing regarding proposed changes to the Wastewater Connection Rates and Charges and to the Wastewater Service Rates and Charges Staff requests direction from Council regarding preparation of legislation implementing the Council's preferences among the recommendations of this report and the accompanying wastewater service charge rate increase WCC discussion Page 7 April 2005 BUSINESS OF THE CITY COUNCIL YAKIMA, WASHINGTON AGENDA STATEMENT Item No. 1 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 Manar 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 ACTIN * * 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 Ordmance was passed as amended to adjust the fees in 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 mcrease 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. C 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 PrestonIGatesiEllis uP MEMORANDUM. 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, engineering 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 permit 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. (206) 623 -7580 FAX. (206) 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 nght to pay the connection fee that was in place at the time inquiries were made but prior 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 prior 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 doctrine 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 Primary 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 discnmination See Maislin, 110 S Ct. at 2768 Indeed, a municipal utility must comply strictly 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 authonty 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 appropnate 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 ET et K:\25739 \00042 \ET\ET_M22 LH 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, amending 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 establish 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 fmds 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 extending service and facilities to other areas, and WHEREAS, the City Council finds that the character of service and facilities furnished to a customer m census tract 01, 02, 03, 05, 06, 07, 12, 13, 14, 15, 16 or 17, may differ from the character of service and facilities furnished m other areas because service and facilities m such tracts may be more effective m improvmg the function and efficiency of the wastewater system, and WHEREAS, the City Council fmds and determmes 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 fmds and determines that it is m the best mterests 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 m this Ordinance; and WHEREAS, the City Council fmds and determines that the rates, fees, and charges contamed m this Ordmance are fair, just and reasonable, NOW, THEREFORE, BE IT ORDAINED BY THE CITY OF YAKIMA 6/13/05 Page 1 of 13 Section 1. Section 7 58 010 of the Mumcipal 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 (includmg 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 indicates otherwise, the meaning of terms in this chapter shall be as follows: 1 "Collection pipes" mean those wastewater system pipes less than twelve mches m diameter used to collect wastewater from adjacent properties' building sewers. 2. "Collection pipe system" means a series of collection pipes extending 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 meanmg as m Chapter 7 65 7 "Lot" shall have the same meanmg as m Chapter 15 02. 8 "Lot area" shall have the same meaning as in Chapter 15 02. 9 "Low- or moderate -mcome facility owner" means a person who owns a single- family residential facility and whose annual mcome is at or below eighty percent of the median income of the Yakima metropolitan statistical area. Where more than one person has an ownership interest m a residential facility, the term refers to those persons whose combined annual income is at or below eighty percent of the median income of the Yakima metropolitan statistical area. The median mcome of the Yakima metropolitan statistical area shall be determined by reference to data published by the United 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 meaning as in Chapter 7 65 13 "SDU," "single dwelling unit," "SFD" or "smgle- family dwelling" shall all have the same meaning as "dwelling, single- family" or "single- family dwellmg" m Chapter 15 02. 14 "Trunks /interceptors" mean those wastewater system pipes twelve mches or greater m 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 in Chapter 7 65 For purposes of this chapter, "wastewater" does not include "food processmg wastewater" defined m Chapter 7 12. 16 "Wastewater system" shall have the same meaning as "POTW" or "publicly owned treatment works" in Chapter 7 65 and mcludes all sewers, pipes, and wastewater 6/13/05 Page 2 of 13 treatment plants. For purposes of this chapter, "wastewater system" does not mclude "food processing wastewater system" defined m Chapter 7 12. 17 "Wastewater treatment plant" shall have the same meaning as m Chapter 7 65 For purposes of this chapter, "wastewater treatment plant" does not include "food processmg wastewater treatment plant" defined in Chapter 7 12. 18 "Water meter size" shall be determined by reference to the criteria m the Uniform Plumbmg Code or Uniform Buildmg Code as the city may adopt from time to time, provided that any facility not served by the city water division shall determine "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 within 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 withm 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 connectmg 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 preliminary 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. Withm Zone 1 (inside City) the Wastewater Connection Charge shall be waived for any residential unit(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.0 or the final assessment of the LID plus interest. 6/13/05 Page 3 of 13 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 district final assessment is authonzed 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 inspection, 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 Pubhshed. The city Code Administration 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 earlier than thirty days after publication. E Connection charge for properties not within Zones 1, 2, and 3 Any person wishing 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 (includmg costs associated with expanding 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 expandmg the plant) ( "actual cost ") B For accounts discharging "domestic wastewater ", the amount of this charge is a function of the amount of water flowing to the facility to be connected and the zone m which the facility is located. The treatment plant charge for single dwellmg units (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 6/13/05 Page 4of13 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 following 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 units 529 73 per unit 529 73 per umt 729 10 per unit 80% of SDU per unit residential 5+ units 423 78 per unit 423 78 per umt 583.28 per umt 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 umt 750 97 per unit residential 5+ umts 436.50 per unit 436.50 per unit 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 mut 561 99 per unit 773.50 per umt residential 5+ units 449 60 per unit 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 6/13/05 Page 5 of 13 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 6/13/05 Page 6 of 13 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 includes both an equitable share of the cost of the existmg trunks /interceptors ( "historic cost ") and a reasonable estimate of the actual cost of connection to the trunks /interceptors (including 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 determined by multiplying the lot area (measured m square feet (sf)) by the rate given m 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 multiplying the customer's authorized flow (measured m gallons per day (gpd)) by the rate given m 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 existmg 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 l Zone 2 Zone 3 From Effective Historic $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/€low) Times gallons per day Zone l 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 6/13/05 Page 7 of 13 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, Historic 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 Municipal Code is amended to read as follows: 7.58.070 Base collection pipes charge. A. The base collection pipes charge includes 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.expandmg 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 determined 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 originally fmanced by local improvement district 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. 6/13/05 Page 8 of 13 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 Historic 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 Historic $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, Histonc 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 smgle - dwelling units, a maximum parcel size of twelve thousand square feet (12,000 sf) shall be utilized in calculating charges under Sections 7.58 060 and 7 58.070 B For facilities other than smgle - dwelling units (i.e. multi -unit residential, industrial or commercial facilities), the maximum parcel size utilized m calculating charges under 6/13/05 Page 9 of 13 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 buildings. Section 9. Section 7 58 080 of the Municipal 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 obtained. B For Non - Domestic Dischargers, wastewater connection charges, based upon their mitial Discharge Authorization, shall be paid in 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 within thirty (30) days of receiving notice. Unpaid charges shall constitute a lien against the connected property Such hen shall be prior to all hens and encumbrances filed subsequent to its filing with the county auditor, except the lien 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 admmistration and planning division for periodic payment of the applicable connection charge, provided that (1) the facility owner is a low- or moderate - income 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 private septic system or some system of sewerage other than the wastewater system, and (5) the connection charge applicable 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 m 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 applicable connection charge and the number and amount of quarterly payments. The code administration and plannmg 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 .prune rate as quoted in the Wall Street Journal on the last business 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 6/13/05 Page 10of13 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 remaining 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 business 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 administering the installment payment program. F If either the applicable connection charge or the prime rate as quoted m 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 Admmistration and Plannmg 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 Admmistration and Planning 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 m the request form for a period of mnety (90) days from the date of final execution by the city In the event that the facility owner fails to complete the connection within mnety (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. Nothmg in this section shall be construed to limit the city's authority to collect any delmquent connection charge payment or payments, mcludmg the city's authority to impose a hen or shut off water service as provided in Chapter 35 67 RCW For purposes of a hen unposed 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 writing or recording 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 increase according to Sections 7.58 040 through 7 58.075 Credit shall be allowed for the previously established flow, provided that, in 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 6/13/05 Page 11 of 13 participated m an LID but has not yet connected to the wastewater system shall be credited with the current value of a Single Dwelling Unit (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 originally connected are located, unless an increase m flow or intensity of use is mvolved. Any additional charges due as a result of subdivision shall be determined as set forth in subsection A of this section and shall be paid in 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 mtensified then the amount of the applicable wastewater connection charge is subject to recalculation according to Sections 7.58 040 through 7.58.075 Credit shall be allowed for the facility's existing Authorized or Permitted Discharge, provided that m no case shall the credit exceed the cost of the recalculated charge Any such mcrease shall be paid m 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 in 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 mto 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 6/13/05 Page 12 of 13 Section 14. This ordinance 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 6/13/05 Page 13 of 13