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036-21 - Ordinance - Water and Sewer Capital Facility ChargesoRDtNANCE NO.036-21 AN ORDTNANCE OF THE CtTy OF PORT ORCHARD, WASHTNGTON, RELATTNG TO THE WATER AND SEWER CAP|TAL FACtLtTy CHARGES (CFC) AND THE EXCEPTIONS THERETO; AMENDING PORT ORCHARD MUNICIPAL CODE (POMC) SECTTONS L3.O4.O25, 13.04.030, 13.04.035, AND 13.04.040; ADOPTING NEW POMC SECTION 13.04.036 AND REPEALING POMC SECTION 13.04.080; 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 charges a Sewer Capital Facility Charge (Sewer CFC) paid to the City for new development and connections to the City's sewerage system; 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, although Sewer CFCs are charged per equivalent residential unit (ERU), Water CFCs differ for residential and non-residential, with the latter based on the meter size utilized; and WHEREAS, in the interest of uniformity in the levying of the CFCs, and therefore predictability and reduced administrative expense, and in conjunction the application of exceptions to the CFCs, the City desires to apply the CFCs and the applicable exceptions based on ERU; and WHEREAS, at the July 20th Work Study the City Council discussed the proposal and provided direction to staff; 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 FOTLOWS: SECTION 1. Port Orchard MunicipalCode 13.04.025 is herebyamended to read asfollows: 13.04.025 Fee Schedule Ordinance No. 036-21 Page 2 of 8 (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 Facility Charge PoMc 13.04.030(1)(a) Per ERU (except lrrigation) $tt,slt lrrigation - Per Meter Stt,slt Water lnspection Fee POMC 13.04.030(7) and 13.0a.033(3) Per Meter s1r.1.37 Connection Fees/Labor lnstallation Fees POMC 13.04.1) 3/4"5r,1L3.73 L il 51,336.49 r-r/2"S1,670.61 2"52,227.48 La rger Estimated case by case Water Main Front Footage Charge POMC 13.04.035 Per Front Foot Sttt.zt ,ftF* Ordinance No. 036-21 Page 3 of B sEcTtoN 2.Port Orchard Municipal Code 1-3.04.030 is hereby amended to read as follows: 13.04.030 Water Capital Facilitv Charee (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 capitalfacility 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 cha rge. (a) The water capital facility charge for a 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) The water capital facility charge for a nonresidential connection is based on a set fee per ERU which is set forth in POMC 13.04.025. (c) When a building contains a mix of uses (residential & non-residential)the water capital facility charge is based on a sum of (a) and (b) above. (d) lrrigation meters are charged a set fee which is set forth in POMC L3.O4.025 (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.L00, 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 Ordinance No. 036-21 Page 4 of 8 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) lf, after connection of a nonresidentialservice, the actualwater usage has increased orthe 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 capitalfacility charge based upon the new or expanded use. The additional water capitalfacility 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 full exception to the assessment of the water capital facility charge, provided all of the following requirements must be met to qualify for a partialor fullexception: (a) Property owners must submit an application for a partial or full exception on the City's application form; 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 (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) After the building improvements are completed, the total water usage for the account will be equalto or less than the ERU number calculated consistent with this section. *** SECTION 3. Port Orchard Municipal Code 13.04.035 is hereby amended to read as follows: 13.04.035 Water 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 main to serve such premises, water service shall be provided upon payment of a water main front footage charge as provided for in this section, in addition to the water capital facility charge set forth in POMC 13.04.030and the connection fee set forth in POMC 13.04.033. (2) The water 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 Ordinance No. 036-21 Page 5 of B 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)Water 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 water main as part of a water local improvement district and there are records to verify this; or (b) The property has extended the local water 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 water main pursuant to a latecomer's agreement; or (d) The agreement for purchase and sale of assets of McCormick Water Company, lnc., waives the city fee in lieu of assessment for water services. These are the services within McCormick Woods, Campus Station, Kenmore Court, and McCormick 620. (a) lf 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 shallexecute the agreement based on those determinations. The decision may be appealed to the hearing examiner. sEcTtoN 4. follows: New Port Orchard Municipal Code L3.04.036 is hereby adopted to read as 13.04.036 Water main agreement in lieu of assessment (1) Where all or a portion of the premises to be served does not abut a water main, water service may be provided upon execution of an AgreementforWater Main ln 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 water main as part of a water local improvement district; or (b) Property owner will extend the local water 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 water main pursuant to a latecomer's agreement or other agreement; or Ordinance No. 036-2L Page 6 of 8 (d) Property owner will pay a Water Main Front Footage Fee (2) lf a property owner requests an Agreement for Water Main ln 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 5. Port Orchard Municipal Code L3.04.040 is herebyamended to read asfollows: 13.04.040 Sewer Capital Facility Charge - Extension of Sewer (1)The sewer capital facility charge is designed to mitigate the impact of new demands on the existing sewer system and to require new users to pay their fair share of the value of the sanita ry sewer system. The sewer capital facility charge applies to new construction, changes in use, and building modifications that increase the total number of equivalent residential units (ERUs). An ERU is 1-80 gallons per day for nonresidential connections. 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. The ERU consumption is based upon metered water consumption or comparison to similar accounts when metered water consumption data is not readily available. (a) Sewer Capital Facility Charge - Exception for Redevelopment or Change of Use. Property owners may a pply to receive a partial or f ull exception to the assessment of the sewer capital facility charge, provided all of the following requirements must be met to qualify for a partial or full exception: (i) Property owners must submit an application for a partial or full exception on the City's application form; and (ii) A nonresidential or residential account has maintained a connection to the city's sewer system and paid a minimum base fee, as applicable; and (ii) Sometime after the original connection, the property owner decides to construct a new building, change the original use, or modify the original building; (iii)After the building improvements are completed, the total sewer usage for the account will be equal to or less than the ERU number calculated consistent with this section; and Ordinance No. 036-21 Page 7 of 8 (b)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. (2) The sewer capital facility cha rge consists of two components: the general facility fee (GFF) and the wastewater treatment facility fee (WTFF). The general facility fee and the wastewater treatment facility fees are set forth in POMC 13.04.025. The properties within Divisions 1 through 1-0, inclusively, of the McCormick Woods Land Company shall have a wastewater treatment fee which is set forth in POMC 13.04.025. *t(* sEcTtoN 6 Repealer. Port Orchard Municipal Code 13.04.080 is hereby repealed SECTION 7. Repealer. All previous Resolutions or portions thereof conflicting with the amendments set out in this Ordinance, including but not limited to Resolution No. L66, are hereby repealed. sEcTtoN 8 lf 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 9. 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. 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 27th day of July 2O2L. Robert Putaansuu, Mayor Ordinance No. 036-21 Page 8 of 8 ATTEST Brandy nearson,MMC, City Clerk APPROVED AS TO FORM Charlotte A. Archer, City Attorney PU BLISH E D : July 3O, 202L EFFECTIVE DATE: August 4,2O2L SPONSOR Cindy Lucarelli, Councilmember