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021-09 - Ordinance - Amending Chapter 13.04 Water and SewersIntroduced by: Public Works Director Requested by: Public Works Director Drafted by: Public Works Director Introduced: August 25, 2009 Adopted: August 25, 2009 ORDINANCE NO.021-09 AN ORDINANCE OF THE CITY OF PORT ORCHARD, WASHINGTON, AMENDING PORT ORCHARD MUNICIPAL CODE CHAPTER 13.04 "WATER AND SEWERS" BY INCREASING THE WATER AND SEWER RATES WHEREAS, the recent annexation of the McCormick Urban Village has resulted in the loss of considerable water and sewer revenue because the fifty percent surcharge on properties that are served outside City limits no longer applies to the McCormick Urban Village; and WHEREAS, the City has calculated the amount of lost revenue and the impact on the water and sewer utilities' financial viability given the utilities' future Capital Improvement Program needs; and WHEREAS, the City Council desires to keep water and sewer rates reasonable but must also balance the need to generate sufficient revenue to fund operations, maintenance, and future capital improvements; and WHEREAS, the City Council held properly noticed public hearings on August 11 and August 25, 2009 for the purpose of receiving public comment regarding the proposed rate increases; now, therefore, THE CITY COUNCIL OF THE CITY OF PORT ORCHARD, WASHINGTON, DO ORDAIN AS FOLLOWS: SECTION 1. Effective Date. This ordinance shall be effective October 1, 2009. SECTION 2. Port Orchard Municipal Code 13.04.010 is hereby amended to read as follows: 13.04.oio Bimonthly water rates. Water rates are billed on a bimonthly schedule. The water rates, as calculated bimonthly, are shown below: (1) Cost for the first 5,000 gallons, bimonthly. Size of Service Bimonthly Rate Ordinance No. 021-09 Pace 2 of 10 1" $ 23.50 1-1/2" $ 26.50 2" $ 29.50 3" $ 35.50 4" $ 47.50 6" $ 68.50 8" $ 89.50 10" $ 113.50 (2) Consumption Charge RATE 1 o to 3,000 gallons $18.50 RATE 2 3,001 to 5,000 gallons $22.50 RATE 3 5,001— 30,000 gallons Rate 2 plus $2.10/1,000 gal RATE 4 30,001— 50,000 gallons Rate 2 plus Rate 3 plus $2.20/1,000 gal RATE 5 50,001— roo,000 gallons Rate 2 plus Rate 3 plus Rate 4 plus $2.30/1,000 gal RATE 6 100,001 — 150,000 gallons Rate 2 plus Rate 3 plus Rate 4 plus Rate 5 plus $2.40/1,000 gal RATE 7 In excess of 150,000 gallons (3) Fire Hydrant Service. Schools Private Service (4) Temporary Construction. One -Day Service Rate 2 plus Rate 3 plus Rate 4 plus Rate 5 plus Rate 6 plus $2.50/1,000 gal $12.00 per hydrant $22.00 per hydrant $2.20/1,000 gallons or $22.50 whichever is greater Construction Account As metered: Ordinance No. 021-09 Page ,� of 10 o — 50,000 gallons $2.20/1,000 gallons 50,001— 1oo,000 gallons $2.30/1,000 gallons 100,001— 150,000 gallons $2.40/1,000 gallons In excess of 15o,000 gallons $2.50/1,000 gallons (5) Multiple Connections. Multiple connections are where more than one customer is being served through a master meter and the billing is based on the flow through such master meter. The minimum bimonthly billing is determined by the number of customers multiplied by a rate of $22.5o. The consumption charge will be computed by subtracting the amount equal to the number of customers multiplied by 5,000 gallons from the total gallons consumed. The rate of the consumption above 5,000 gallons will be $2.10 per i,000 gallons up to 30,000 gallons, $2.20 per 1,000 gallons from 30,001 to 50,000 gallons, $2.30 per 1,000 gallons from 50,001 to 1oo,000 gallons, $2.40 per 1,000 gallons from 100,001 to 150,000 gallons and $2.50 per r,000 gallons in excess of r5o,000 gallons. (6) Properties Outside City Limits. Properties served outside the city limits shall have a 50 percent surcharge on the monthly rate. (7) Hydrant Meter Rentals. All persons renting a hydrant meter shall pay a refundable deposit. The following rental fees shall apply to all persons renting a hydrant meter: the first 6o days, no charge; the next 12o days, $250 for each 3o day period; in excess of 18o days, $500 for each 3o day period. SECTION 3. Port Orchard Municipal Code 13.04.020 is hereby amended to read as follows: 13.04.02o Bimonthly sewer rates. (i) Sewer rates are billed on a bimonthly schedule. The sewer rates, as calculated bimonthly, are shown as follows: Description Class Single-family residences 1 Mobile home on single parcel 1 Business 2 Professional 2 Churches 3 Hotels, motels 4 Rest homes, care centers 4 Kitsap County jail 4 Apartments 5 Mobile home parks 5 Schools 6 Ordinance No. 021-09 Page 4 of 10 Kitsap County courthouse (main 7 complex) Restaurants 8 Laundromats 9 Taverns 10 Car dealerships 11 Post office 12 Grocery stores 13 Bowling alley 14 Boat marina 14 Health maintenance organizations 14 Work release and juvenile facilities 14 Kitsap County public works building 14 Car washes 15 Beauty shops and barber shops 16 Day care 17 Gas stations 18 Assisted living units 19 Bed and breakfasts 20 (2) Bimonthly Rates Class 1 $79.50 Class 2 $79.50 for each business with a fixture. $19.90 for each business, with an employee present, without a fixture. $79.50 for each floor of an office building or retail complex that has a public or community bathroom. interior size: Class 2 shall be subject to the following surcharge, based on store/office Category Size of Store/Office Surcharge Small Less than 15,000 sf None Medium 15,000 to 30,000 sf $79.50 Large More than 30,000 sf $159.00 Class 3 $79.50 for the church, plus* $79.50 for the rectory, plus* $79.50 for the annex. *Class 6 for educational parochial schools. Class 4 Base fee of $79.50 plus $19.90 per unit. Ordinance No. 021-09 Page 5 of 10 Class 5 $79.50 per dwelling unit. Class 6 $3.00 for each pupil, teacher, maintenance and administrative person. Class 7 $3,100.50 Class 8 Based on the seating capacity as determined by the building official Description Seating Capacity Rate Espresso Bar Not Applicable $79.50 Deli 0 $119.25 Small 1 to 50 $238.50 Medium 51 to 150 $357.75 Large More than 150 $477.00 The classification of espresso bar includes similar food preparation businesses which do not require the cooking of food or the maintenance of kitchen equipment. Class 9 Base fee of $39.75 plus $19.90 per washing machine. Laundromats with less than four washing machines are considered Class 2. Dry cleaners without washing machines are Class 2. Class io $199.00 Class 11 $79.50 for sales and administrative office, plus $79.50 for service department, plus $79.50 for car washing when the water is used to determine cost sharing for the sewer treatment plant. Class 12 $278.25 Class 13 Basic fee of $39.75 plus the following surcharges: Description Surcharge Basic Store $39.75 Bakery $39.75 Wetted -Down Produce $79.50 Food Disposal $79.50 Meat Cutting Area $159.00 Class 14 Basic fee of $39.75 plus $39.75 for each equivalent residential unit (ERU) as determined for the cost -sharing formula for the sewer treatment plant. Ordinance No. 021-09 Page 6 of 10 Class 15 Basic fee of $39.75 Plus $119.25 per car washing bay. Class 16 $79.50 Class 17 Basic fee of $159.00 plus the following surcharges: Description Surcharge Less than 5 children -0- 6 to 25 children $79.50 More than 25 children Class 6 rates Class 18 $79.50 for gasoline retail, which could include service bay. $79.50 for nonautomotive retail. Class 19 Base fee of $79.50 plus $79.50 per unit with private kitchen; $19.90 per unit without private kitchen, or studio apartment Class 20 Base fee of $79.50 plus $7.95 per rentable bedroom Special Notes: (a) Home occupations will not be charged additional sewer fees. (b) For a combination of classes in one business, the highest rate will be selected. (c) In the event that an established rate class does not accurately reflect the impact on the sewer system, the city engineer may determine the specific mondhlyrate. (d) Water accounts which serve a marine pier and do not have a connection to the sewer shall not be charged a sewer bill. A sewer bill will be charged and based on winter consumption if the water meter serves both the marina pier and anyfacilityorpump station that is connected to the sewer system. For billing purposes, live-aboardswillnot be considered as a dwelling unit. (e) Properties served which are outside the city limits shall have a 50 percent surcharge on the monthly rates. SECTION a. Port Orchard Municipal Code 13.04.030(7) is hereby amended to read as follows: 13.04030 Water capital facility charge — extension of water. (r) 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 Ordinance No. 021-09 Page 7 of 10 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 18o gallons per day for nonresidential connections. 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 connection is $4,500 per ERU. An ERU for this purpose shall be computed based on the water meter size and shall be calculated according to the average flow factor of a displacement type meter where a three -quarter -inch meter shall have a flow factor equal to one ERU. 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) The water capital facility charge for a nonresidential connection shall be calculated based on meter size as set forth below: Capital Facility Meter Size Charge 3/4" $4,500 1" $7,505 1-1/2" $14,965 2" $23,953 3" $47,906 4 $75,870 (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. Ordinance No. 021-09 Page 8 of 10 (3) Water Capital Facility Charge — Exception. The following exception applies to the assessment of the water capital facility charge. All four elements of the below -listed requirements must be present to qualify for the exception: (a) A nonresidential account paid the water capital facility charge at the time the property connected to the city's water system; (b) Sometime after the original connection, the property owner decides to construct a new building, change the original use, or modify the original building; (c) After the building improvements are completed, the total water usage for the nonresidential account will be equal to or less than the usage of the time of the original connection; and (d) The new construction, change in use, or building modification has not resulted in an additional direct connection to the city's water system or the establishment of an additional water account. (4) 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) A credit against the water capital facility charge may be applied for those property owners that construct at their own expense any of the improvements that are a basis for calculating the value of the water capital facility charge or for those property owners that pay a latecomer's fee toward those same improvements. The credit shall be the smaller of the following: (a) That portion of the design and construction costs of the latecomer's agreement that are directly applicable to the Ordinance No. 021-09 Page 9 of ro construction of the improvements that are a basis for the value of the water capital facility charge; or (b) That proportionate amount of the water capital facility charge that is attributable to the water facilities either constructed by the property owner or paid through a latecomer's fee. (6) The above provisions notwithstanding, the amount of any credit shall not exceed the amount of the water capital facility charge for the property to which the credit is being applied. (7) At the time the water capital facility charge is paid, an inspection fee shall be paid. The inspection fee is $ioo.00 per meter. (8) 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. (9) If a property owner requests a credit or exemption as described above, the director of public works shall make an administrative determination regarding the applicability and amount of the credit or exemption. The director's decision may be appealed to the hearing examiner. (ro) 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 15 years or more prior to the date the property owner requests the exception or credit. SECTION 5. Port Orchard Municipal Code 13.04.o65 is hereby amended to read as follows: 13.04.o65 CPI adjustment. (r) Commencing November r, 20o9, and on November rst of each successive year thereafter, unless otherwise adjusted by the city council during the previous six-month period, all capital facility charges, connection fees, and fees in lieu of assessment set forth in this chapter, but excluding water and sewer rates, shall be 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, Ordinance No. 021-09 Page io of io Bureau of Labor Statistics, for the prior June; but in no event shall the adjustment be less than zero. (2) The city council shall review the water and sewer rates annually and shall adjust them as it deems appropriate. SECTION 6. Savings Clause. Those sections of Port Orchard Municipal Code Chapter 13.04 that are amended by this ordinance shall remain in full force and effect until the effective date of this ordinance. SECTION 7. 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 8. After posting and publication, this ordinance shall be in full force and effect on the date set forth above in Section 1. A summary of this Ordinance may be published in lieu of the entire ordinance, as authorized by State Law. 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 25th day of August 2009/ ATTEST: Lq Patricia J. Kirk atrick, CMC, City Clerk APPROVED AS TO FORM: Gregory <Jaby, i Attorney Sponsored by: Rob Putaansuu, Councilmember