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Home My WebLink About2000-012 Provide a floating interest rate on Deferred Wastewater Hook-up Payment Plans for Low Income Residential Proper 4 ORDINANCE NO. 2000 - 1 . AN ORDINANCE relating to periodic payments for wastewater connection charges; to provide that the interest rate applicable to connection charges made by such periodic payments shall be based on the Prime Rate; amending section 7.58.085 of the Yakima Municipal Code accordingly. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF YAKIMA: Section 1. Section 7.58.085 YMC, and Ordinance 99 -17, are amended to read 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 Engineering 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 remains 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 $1,000.00. 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 Engineering 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 applicable connection charge and the number and amount of quarterly payments. The Engineering Division shall determine the amount of the connection charge by reference to Sections 7.58.040 through 7.58.090 YMC. The Engineering 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 business day of the month preceeding preparation and delivery of the Request Form to the facility owner of - • - - • , within three (3) years of the date of connection if the C: \ WINDOWS \TEMP \prime rate ord.docLast printed 03/30/00 11:39 AM PAOLI 1 of1 • applicable connection charge is less than or equal to $5,000.00,. or within five (5) years of the date of connection if the applicable connection charge - is more than $5,000.00. 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 original or anv updated Request Form unless: (1) the facility owner qualifies as a low- or moderate- income 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 in the Wall Street Tournal on the last business day of the month preceeding presentation of the executed Request Form by the facility owner has not changed; and (45) the facility owner has paid a $100.00 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 in the Wall Street Tournal on the last business day of the month preceeding presentation of the executed Request Form by the facility owner has changed. the City Engineer shall revise the terms and quarterly • payment amount to reflect such c haiwes, and shall return an updated Request Farm to the tacilit, owner, \vho may execute the updated Request form and return it to the Cite %.nyjneer tor 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 90 days from the date of final execution by the City. In the event that the facility owner fails to complete the connection within 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. GH. Nothing in this section shall be construed to limit the City's authority to collect any delinquent connection charge payment or • payments, including the City's authority to impose a lien or shut off water service as provided in 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 lien and that lien shall be effective without the necessity of any writing or recording of the lien. C: \WINDOWS \TEMP \prime rate ord.docLast printed 03/30/00 11:40 AM PaaP 9 of ry • • Section 2. Effective Date. This ordinance shall be in full force and effect 30 days after its passage, approval, and publication as provided by law and by the City Charter. PASSED BY THE CITY COUNCIL, signed and approved this 1 day of MAIL— , 2000. �� 02, Mary Place, Mayor ATTEST: City Clerk Publication Date: 2 1 - 7 — a ®0 Effective Date: 5� c • • • • • • • • C: \WINDOWS \TEMP \prime rate ord.docLast printed 03/30/00 11:40 AM Pacre 3 of .3 BUSINESS OF THE CITY COUNCIL YAKIMA, WASHINGTON AGENDA STATEMENT Item No. I 10 For Meeting Of April 4, 2000 ITEM TITLE: Amend Section 7.58.085 of the Yakima Municipal Code (YMC) to provide a Floating Interest Rate on Deferred Wastewater Hook -up Payment Plans for Low Income Residential Property Owners. SUBMITTED BY: Rita Anson, Finance Director Bill Cook, Director of Community and Economic Development AT V- - CONTACT PERSON/TELEPHONE: - Rita Anson, #575 -6070 10111 Cook, #575 -6113 SUMMARY EXPLANATION: On April 20, 1999, Council approved Ordinance #99 -17 which established an Installment Payment plan for Wastewater Utility Connections for low income residential homeowners. And on February 15, 2000, Council approved a staff recommendation to change the interest rate charged on these Installment Payment plans from a fixed rate to a floating market rate, the rate to be determined at a future date. Staff recommends amending Section 7.58.085 of YMC to change the interest rate charged on the wastewater hookup payment plans from the current 8% fixed rate to a floating market rate equal to the Prime Interest Rate as stated in the Wall Street Journal. As a comparison; the City currently offers loans for LIDs at a floating interest rate of Prime Plus 2 %. Since the purpose of the Wastewater hookup payment plan is to assist low income residential customers who may not have other means of attaining funding, a slightly lower interest rate is appropriate. Resolution Ordinance X Other (Specify) Contract Mail to (name and address): Phone: Funding Source APPROVED FOR SUBMITTAL: �� City Manager STAFF RECOMMENDATION: Approve Ordinance BOARD /COMMISSION RECOMMENDATION: COUNCIL ACTION: