058-21 - Ordinance - Water and Sewer Capital Facility Charges (CFC)ORDINANCE NO. 058-21
AN ORDINANCE OF THE CITY OF PORT ORCHARD, WASHINGTON,
RELATING TO THE WATER AND SEWER CAPITAL FACILITY CHARGES (CFC),
THE EXCEPTIONS THERETO AND THE AVAILABILITY OF OBTAINING A
CREDIT FOR DEVELOPMENT AND CONSTRUCTION OF PROJECTS ON THE
CITY'S WATER CAPITAL FACILITIES LIST; AMENDING PORT ORCHARD
MUNICIPAL CODE (POMC) SECTION 13.04.030 TO CLARIFY CREDIT
REQUIREMENTS, AMENDING POMC SECTION 13.04.025 FOR
HOUSEKEEPING AMENDMENTS; ADDING NEW SECTIONS 13.04.043 AND
13.04.044 TO THE POMC REGARDING SEWER MAIN FRONT FOOTAGE
CHARGES AND SEWER MAIN AGREEMENT IN LIEU OF ASSESSMENT;
PROVIDING FOR SEVERABILITY; AND ESTABLISHING AN EFFECTIVE DATE.
WHEREAS, the City of Port Orchard charges a Water Capital Facility Charge (Water CFC),
levied upon new connections, changes in use, and building modifications which increase the total
number of ERUs connected to the City's water utility; and
WHEREAS, the City recently updated the City's Sewer CFC and Water CFC rates following
detailed rate studies; and
WHEREAS, following that project, the City audited the exceptions the City permits to the
Water CFC and Sewer CFC, and, in particular, audited the methodology utilized for determining
whether an exception is triggered; and
WHEREAS, the City Council adopted Ordinance No. 036-2021 on July 27, 2021 to update
chapter 13.04 POMC; and
WHEREAS, the City Council adopted Ordinance No. 018-2021 on August 17, 2021, to make
additional changes to chapter 13.04 POMC; and
WHEREAS, as part of that update, the Council amended POMC 13.04.025, however, the
Code reviser has refused to remove a table entitled "Water Capital Facility Charge Nonresidential
— Based on Meter Size" that the Council intentionally deleted, therefore clarification about that
deletion is required so that the code will match the legislation passed by the City Council; and
WHEREAS, additional revisions to section 13.04.030 POMC are needed to create a credit
agreement process for utilizing the CFC credit option and to ensure that the updated code is
consistent with the terms of prior agreements for water credits and with the City's agreement to
purchase the McCormick Water Company; and
WHEREAS, additional changes are needed to ensure that water and sewer main extensions
are treated equally; and
Ordinance No. 058-21
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WHEREAS, consistent with POMC 13.04.065, on October 1, 2021, all capital facility charges,
connection fees, and fees in lieu of assessment, but excluding water and sewer rates, were
automatically adjusted based upon the All Urban Consumers Price Index for the Seattle -Tacoma -
Bremerton area as published by the U.S. Department of Labor, Bureau of Labor Statistics, for the
prior June, and by this Ordinance that rate adjustment is memorialized in POMC 13.04.025; and
WHEREAS, the City Council finds that the amendments herein are consistent with goals and
policies of the City's Comprehensive Plan and related regulations, and serve the public health, safety,
and general welfare of the citizens of Port Orchard; now, therefore,
THE CITY COUNCIL OF THE CITY OF PORT ORCHARD, WASHINGTON, DO ORDAIN AS
FOLLOWS:
SECTION 1. Section 13.04.025 of the Port Orchard Municipal Code is hereby amended
to read as follows:
13.04.025 Fee schedule.
(1) The fees set forth below are referenced in POMC 13.04.030, 13.04.033, 13.04.035 and
13.04.040.
Water Sewer Connection Fees
Water Capital
POMC
Facility Charge
13.04.030(1)(a)
Per ERU (except
$ 12,207.41
irrigation)
Irrigation — Per meter
$ 12,207.41
Water Inspection Fee
POMC 13.04.030(7)
and 13.04.033(3)
Per Meter
$111.37
Connection
POMC 13.04.033(1)
Fees/Labor
Installation Fees
3/4"
$1,174.99
Ordinance No. 058-21
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Water Sewer Connection Fees
1"
$1,410.00
1-1/2"
$1,762.49
2"
$2,349.99
Larger
Estimated case by
case
Water Main Front
Footage Charge
POMC 13.04.035
Per Front Foot
$117.50
Sewer Main Front
Footage Charge
POMC 13.04.043
Per Front Foot
$117.50
Sewer Capital Facility
POMC 13.04.040(2)
Charge, consisting of
both:
Sewer Wastewater
POMC 13.04.040(2)
Treatment Facility
Fee
Per ERU
$3,795.23
McCormick Land Co.
$929.72
Div. 1-10 per ERU
General Facility Fee
POMC 13.04.040(2)
Per ERU
$8,993.88
Sewer Inspection Fee
POMC 13.04.040(8)
Per Lateral
Connection
$111.37
(2) The fees set forth below are referenced in POMC 13.04.050, 13.04.055, and 13.04.120.
Billing and Miscellaneous Charges
Ordinance No. 058-21
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Billing Charges
POMC 13.04.050
Water/Sewer
$10.00
Delinquency Notice
at Location
Water Shutoff Fee
$40.00
Meter Turn -Off
$250.00
Violations (as
Determined by City)
Damaging the Utility
POMC 13.04.120
System
Violation Fine (as
$250.00
Determined by the
City)
Miscellaneous
POMC 13.04.055
Charges
After Hours Turn-
$75.00
On/Shutoff
Notification to
$10.00
Tenant of Water
Shutoff per Hold
Harmless Agreement
Service Fee for
$20.00
Estimated or Final
Billing Closing
Requests
(3) The fees set forth below are referenced in POMC 13.04.031 and 13.04.045.
Water Plan Review Fees
Review
POMC 13.04.031
Main Extension
Review
$0.30
Ordinance No. 058-21
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Water Plan Review Fees
Per lineal foot of
main
Pump Station Review
$300.00
Significant Facility
Review*
Consultant fee** plus
10%
Sewer Plan Review Fees
Review
POMC 13.04.045
Main Extension
$0.30
Review
Per lineal foot of
main
Pump Station Review
$300.00
Significant Facility
Consultant fee** plus
Review*
10%
Water Inspection Fees
Inspection
POMC 13.04.031
Main Extension
$1.25
Inspection
Per lineal foot of
main
Pump Station
$600.00
Inspection
Significant Facility
Consultant fee** plus
Inspection*
10%
Sewer Inspection Fees
Inspection POMC 13.04.045
Main Extension $1.50
Ordinance No. 058-21
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Sewer Inspection Fees
Inspection
Per lineal foot of
main
Pump Station
$600.00
Inspection
Significant Facility
Consultant fee** plus
Inspection*
10%
* Significant facilities include improvements such as sewer lift station construction or
enlargement, force main construction, water system storage tanks, well construction, and
water treatment facilities.
** This review and inspection shall be performed by the city's water or sewer consultant
under contract with the city for services of this type.
SECTION 2. Section 13.04.030 of the Port Orchard Municipal Code is hereby amended to
read as follows:
13.04.030 Water Capital Facility Charge
(1) The water capital facility charge is designed to mitigate the impact of new demands on the
existing water system and to require new users to pay their fair share of the value of the water
system including, but not limited to, water supply, treatment, transmission, storage, and
distribution facilities. The water capital facility charge applies to new construction, changes in
use, and building modifications which increase the total number of equivalent residential units
(ERUs). An ERU is 180 gallons per day for nonresidential connections. The ERU consumption is
based upon metered water consumption or comparison to similar accounts when metered
water consumption data is not readily available. Prior to connecting to the city's water system
the property owner shall pay, in addition to other applicable charges, the applicable water
capital facility charge.
(a) The water capital facility charge for a residential or non residential_connection is based
on a set fee per ERU which is set forth in POMC 13.04.025. An ERU for residential
connections is one single-family dwelling unit, whether detached or attached and
configured as an apartment unit, condominium unit, townhouse unit, or any other
configuration.
(b) Reserved.
(c) When a building contains a mix of uses (residential and nonresidential) the water
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capital facility charge is based on a sum of the applicable ERUs as calculated by the City.
(d) Irrigation meters are charged a set fee which is set forth in POMC 13.04.025.
(e) Legally established accessory uses (such as accessory dwelling units, family -day care,
home occupation, or home business) to the Household Living land use code as defined in
POMC 20.39.100, shall not be included in the CFC calculation provided that an accessory
use meets the following criteria:
(i) For accessory dwelling units, the accessory dwelling unit is less than 1,000
square feet in floor area and is served by the same water meter as the principal
dwelling.
(ii) The accessory use, if not an accessory dwelling unit, is expected to use less
than 180 gallons of water per day.
(f) The public works director or designee is authorized to waive the connection fee of the
water systems which do not impact the fire flow storage requirements of the city. All
other fees, charges and expenses shall be paid as in accordance with this chapter.
Examples of these connections are fire protection systems and relocating service lines
which cross private property.
(2) If, after connection of a nonresidential service, the actual water usage has increased or the
property use expanded so that there are a greater number of ERUs being used on the property
than for which the water capital facility charge was paid, the property owner shall pay to the
city an additional water capital facility charge based upon the new or expanded use. The
additional water capital facility charge shall be based upon the charge rate in effect at the time
the increase in use is requested and/or detected, whichever first occurs.
(3) Water Capital Facility Charge — Exception for Redevelopment or Change of Use. Property
owners may apply to receive a partial or a full exception to the assessment of the water capital
facility charge, provided all of the following requirements must be met to qualify for a partial or
full exception:
(a) Property owners must submit an application for a partial or a full exception on the
City's application form prior to the issuance of any land use or development permits
which change the use or development of the property; and
(b) A nonresidential or residential account has maintained a connection to the city's water
system and paid a minimum base fee as applicable; and
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(c) Sometime after the original connection, the property owner decides to construct a
new building, change the original use, or modify the original building; and
(d) For a full exception, after the building improvements are completed, or new use
implemented, the total calculated ERU for the account will be equal to or less than the
ERU number calculated by the city under the prior use or development consistent with
this section. A partial exception is applicable when the new ERU calculation is larger than
the existing ERU calculation. In such case the city will establish the prior calculated ERU
which will be used as the basis for a credit toward the water capital facilities charge.
(4) Local Improvement District Credit; application. A credit against the water capital facility
charge may be applied for those property owners that paid their assessments in full through a
local improvement district formed by the city where such local improvement district is formed
to finance the construction of any of the improvements that are a basis for calculating the value
of the water capital facility charge. The credit shall be equal to that portion of the property
owner's principal assessment, not including interest and penalties, which is directly applicable
to the construction of the improvements that are a basis for calculating the value of the capital
facility charge. The credit shall be applied at the time of payment of the water capital facility
charge and shall not be used to reduce any assessments in the local improvement district.
(5) Existing Credit Agreements. A credit against all or a portion of the capital facility charge may
be applied to properties that are bound by a development agreement or other agreement with
the City that pre -dates this ordinance and which establishes credits for the water capital facility
charge applicable to that property.
(6) Request for CFC Credit. Upon petition to the City Engineer by the property owner or
developer, a credit against the water capital facility charge (CFC) may be applied for those
property owners or developers that construct, at their own expense and with the city's advance
agreement, any of the improvements that are a basis for calculating the value of the water
capital facility charge and which result in upsized capacity over that which is required to serve
their development. However, for development within McCormick Woods and McCormick West,
a property owner may apply for a credit for any improvements that are the basis for calculating
the value of the water capital facility charge regardless of whether there is excess capacity
provided.
(7) The credit described in subsection 6 above is also available e-r-for those property owners
that pay a latecomer's fee toward those same improvements. The amount of such credit shall
not exceed the total payments made as latecomer's fees.
(8) Credit Agreement. In order to obtain a CFC credit, the Credit amount and applicability shall
be memorialized in a CFC Credit Agreement or Development Agreement consistent with this
Section.
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(a) The value of the credit shall be determined by the city engineer and shall be based
(1) conformance of the work with the city's Water System Plan, and
(2) shall be proportional to the additional capacity provided by the planned
capital improvement, except in the area described in subsection 6 above, and
(3) the credit shall be limited to the development identified in the initial credit
request that installed the upsized or additional infrastructure. The agreement may allow
for phased projects.
(b) Alternatively, the value of the credit shall be the amount paid as a latecomer fee
towards the improvement(s).
(c) The total credit, if any, as provided in this section shall not exceed the amount of the
total CFC due and payable to the water utility.
(d) The full actual costs of drafting and processing the CFC agreement shall be
reimbursed by the owner or applicant prior to final city council action on the agreement, to
such extent that the actual costs exceed the initial application fee.
(e) Nothing in a CFC credit agreement shall limit the city's ability to adjust the CFC due at
the time of building permit issuance.
(f) The process for approving a CFC credit shall be as follows:
(1) The developer shall request a credit in writing in conjunction with permit
submittal or a pending permit application and include the following eligibility
information in their request:
A. Identification of the project proposed for construction as listed in
the city's Water Capital Facility Charge calculation and the cost for
that project as it appears in the CFC study.
(2) The city may create an application form to accompany credit requests.
(3) Upon verification of eligibility, the director shall prepare a CFC credit
agreement (unless a development agreement is being sought) for city council
consideration and approval.
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(4) The CFC credit agreement or Development Agreement may allow the deferral
of CFC charges pending completion of the facility to be constructed by the
developer in exchange for credit in rare circumstances (such as when building
construction subject to CFC payment/credit and water facility construction occur
concurrently), at the sole discretion of the city. In such cases, the agreement
shall stipulate that no certificates of occupancy shall be granted prior to
substantial completion of the facility and/or payment of the CFC unless a
performance bond is in place. This deferral is allowed because the total amount
of CFCs owed to the city may not be known prior to project completion and
verification of construction costs. Where credit amounts are anticipated to be
less that the total CFCs owed to the city, the agreement shall stipulate that a
partial payment be made towards the CFCs owed for a project. The city council
may require a performance bond if deferral is allowed.
(5) Credit shall not be granted until the director has deemed the capital project
as completed (with costs certified) unless a performance bond has been
provided to assure project completion. Provided, however, that for significant
projects or multiple projects, the City may enter into an agreement to provide
credits after a certain amount of expense by the property owner or developer
provided that the city retains authority to deny certificates of occupancy or to
require another mechanism to ensure completion of the project.
(6) Project completion shall not occur until:
A. The city deems it substantially complete; and
B. All punch list items are completed to the satisfaction of the city;
and
C. The facility passes final inspection; and
D. The developer has put a two-year warranty and maintenance
bond in place; and
E. The city releases the performance bond (if applicable); and
F. The developer has completed all property dedications; and
G. The developer has provided the city with the certified
construction costs (stamped by licensed engineer) to the city for
determination of the maximum credits available under this
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agreement. The director shall have the authority to approve or
reject project costs and may request additional information in
support of certified construction costs; and
H. The developer has provided the city with a bill of sale for the
improvements; and
I. The city council accepts the project as public.
(7) The city will confirm completeness of the project by issuing a final notice of
completeness to the developer.
(8) Upon certification of completeness, the developer shall pay any balance
owed for CFCs within 90 days or prior to the city's issuance of a certificate of
occupancy, whichever occurs first.
(9) The City Council may require the CFC credit agreement to prorate CFC credits across all lots
or units in a development when the amount of CFCs owed by the developer exceeds the
amount of credit requested.
(10) The above provisions notwithstanding, the amount of credit shall not exceed the amount
of the water capital facility fee for the property to which the credit is being applied and shall
not exceed the certified construction costs for the projects constructed pursuant to an
agreement.
(11) At the time the water capital facility charge is paid, a water inspection fee shall be paid.
The water inspection fee is set forth in POW 13.04.025.
(12) All materials shall comply with the requirements of the city. If the city supplies any
materials, the cost of these plus overhead and sales tax will be paid by the customer or
property owner.
(13) The exceptions and credits described above shall not apply to any costs of construction
incurred or payments made to the city for improvements that are a basis for the value of the
capital facility charge and that were made twenty (20) years or more prior to the date the
property owner requests the exception or credit. For projects completed after August 1, 2021,
no credits are available unless requested and granted by agreement in accordance with this
Section.
(14) The City Council may, in its discretion, enter into an agreement that varies from the
Ordinance No. 058-21
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provisions of this Section when supported by written findings.
(15) The credits described above shall have an expiration date of twenty (20) years after the
date of project completion, or the execution date for the credit agreement or development
agreement, whichever date occurs first. After credits expire, they will no longer be available to
property owners to offset CFC charges.
SECTION 3. A new Section 13.04.043 is hereby added to the Port Orchard Municipal
Code to read as follows:
13.04.043 Sewer main front footage charge.
(1) Where all or a portion of the premises to be served has not been previously assessed or
contributed its share towards the cost of installing a permanent sewer main to serve such
premises, sewer service shall be provided upon payment of a sewer main front footage charge
as provided for in this section, in addition to the sewer capital facility charge and connection
fees set forth in POMC 13.04.025.
(2) The sewer main front footage charge shall be based on the frontage of the property served,
as determined by the public works director. Properties situated on corner lots abutting utility
mains on two sides shall have the front footage charge computed by averaging the two sides.
The charge shall be charged per front foot as set forth in POMC 13.04.025.
(3) Sewer main front footage charges shall be charged on new accounts unless partially or fully
exempted as explained below:
(a) The property has previously paid its share of a local sewer main as part of a local
improvement district and there are records to verify this; or
(b) The property has extended the local sewer main as required by the city and paid all
costs associated with the extension; or
(c) The property has paid its equitable share of the cost of a previously installed local sewer
main pursuant to a latecomer's agreement; or
(4) If a property owner requests an exemption as described above, the director of public works
or designee shall make an administrative determination regarding the applicability, amount of
the exemption, and shall execute the agreement based on those determinations. The decision
may be appealed to the hearing examiner.
SECTION 4. A new Section 13.04.044 is hereby added to the Port Orchard Municipal
Code to read as follows:
13.04.044 Sewer main agreement in lieu of assessment.
(1) Where all or a portion of the premises to be served does not abut a sewer main, sewer
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service may be provided upon execution of an agreement for sewer main in lieu of assessment,
whereby the property owner agrees to the following, among other terms set by the public
works director, and performance of all obligations under the agreement:
(a) Property owner will pay its share of a local sewer main as part of a local improvement
district; or
(b) Property owner will extend the local sewer main as required by the city and pay all costs
associated with the extension; or
(c) Property owner will pay its equitable share of the cost of an installed local sewer main
pursuant to a latecomer's agreement or other agreement; or
(d) Property owner will pay a sewer main front footage fee.
(2) If a property owner requests an agreement for sewer main in lieu of assessment as
described above, the director of public works or designee shall make an administrative
determination regarding the eligibility and terms for an agreement. The director's decision may
not be appealed. Approval of the agreement is the discretion of city council.
SECTION S. Map of McCormick Woods and McCormick West. A map which illustrates
the area referenced in POMC 13.04.030(6) as the "development within McCormick Woods and
McCormick West" is hereby attached to this Ordinance as Exhibit A and incorporated herein by
this reference. Such map shall remain on file with this Ordinance for reference but shall not be
codified.
SECTION 6. Severability. If any section, sentence, clause, or phrase of this ordinance
should be held to be invalid or unconstitutional by a court of competent jurisdiction, such
invalidity or unconstitutionality shall not affect the validity of constitutionality of any other
section, sentence, clause or phrase of this ordinance.
SECTION 7. Corrections. Upon the approval of the city attorney, the city clerk and/or
code publisher is authorized to make any necessary technical corrections to this Ordinance,
including but not limited to the correction of scrivener's/clerical errors, references, Ordinance
numbering, section/subsection numbers, and any reference thereto.
SECTION 8. Effective Date. This ordinance shall be posted and published as required by
law and shall be effective and in full force five (5) days following publication. A summary of this
ordinance may be published in lieu of publishing the ordinance in its entirety.
Ordinance No. 058-21
Page 14 of 14
PASSED by the City Council of the City of Port Orchard, APPROVED by the Mayor and
attested by the Clerk in authentication of such passage this 23rd day of November 2021.
ATTEST:
VIC� yl.Q
Brandy Rinearson, MC, City Clerk
APPROVED AS TO FORM:
Charlotte A. Archer, City Attorney
PUBLISHED: Friday, November 26, 2021
EFFECTIVE DATE: December 1, 2021
Robert Putaansuu, Mayor
SPONSOR:
p U K r
SEAL _
t � �
, Councilmember