Chapter 13.41 UTILITY SYSTEMS DEVELOPMENT CHARGE

Chapter 13.41
UTILITY SYSTEMS DEVELOPMENT CHARGE

Sections:

13.41.010 Definitions.

13.41.020 Purpose.

13.41.030 Utility systems development charge imposed – Rates – Review.

13.41.040 Collection.

13.41.050 Credits.

13.41.060 Segregation and use of revenues.

13.41.070 Appeals.

13.41.080 Scope.

13.41.010 Definitions.

As used in this chapter, unless the context otherwise requires:

A. “Capacity facilities” includes but is not limited to:

1. Water system infrastructure including: water sources, treatment facilities, interties, pump stations, pressure reducing stations, standby generators, reservoirs, distribution, and transmission mains and appurtenances needed for distribution, fire protection and pressure.

2. Sanitary sewer system infrastructure including: lift stations, standby generators, force mains, conveyance lines and appurtenances needed to collect and transport sewage for treatment and disposal or to eliminate a storm and sanitary sewer cross connection.

3. Storm drainage system infrastructure including: pump stations, standby generators, storage facilities, water quality facilities, stream, creek or river improvements and conveyance lines needed to collect, transport and dispose of storm drainage, eliminate storm and sanitary sewer cross connections, eliminate storm and surface water flooding and water quality problems, and treatment and disposal facilities.

B. “Impervious surface,” for the purpose of calculating a system development charge and only as it pertains to this chapter, means a hard surface area that prevents the entry of water into the soil mantle. Common impervious surfaces include, but are not limited to, roof tops, walkways, patios, concrete or asphalt paving. Open, uncovered, retention/detention facilities shall not be considered as impervious surfaces for the purpose of SDC fee calculation.

C. “Utility systems development charge” is a charge imposed on new customers, or existing customers revising use of their property, in recognition of the previous investment of the city and its customers in the utility systems. (Ord. 6341 § 1, 2011; Ord. 6283 § 2, 2009; Ord. 5801 § 1, 2003; Ord. 4830 § 1, 1996; Ord. 4479 § 2, 1990; Ord. 3510 § 2, 1980.)

13.41.020 Purpose.

The city council has determined that it is reasonable and in the public interest to enact and impose a utility systems development charge for the purpose of recovering a fair share of the costs of providing existing utility system infrastructure to serve new customers or revised uses of existing customers. The intent is to reimburse the city’s utility for the cost of construction of available capacity sanitary sewer, water and storm drainage facilities from those properties, which as part of their development and use create direct or indirect needs for those facilities. The city council finds that the public would benefit from a logical long-range approach to the financing of necessary general facilities. Experience has demonstrated that the lack of such provision casts an unfair and unexpected burden on taxpayers and residences in the form of utility rates, taxes, bond interest costs and assessments when core, general or central facilities become inadequate, causing a crisis. Operating from crisis to crisis is wasteful, unsafe and not an acceptable method of operating local government; and debt financing should be minimized wherever possible. (Ord. 6341 § 1, 2011; Ord. 5801 § 1, 2003; Ord. 4830 § 1, 1996; Ord. 4479 § 2, 1990; Ord. 3510 § 1, 1980.)

13.41.030 Utility systems development charge imposed – Rates – Review.

A. A sanitary sewer and water utility systems development charge is imposed upon all lands inside the boundary of the city, and all lands outside the boundary of the city which utilize either sanitary sewer facilities or water facilities or both of the city, and a storm drainage utility systems development charge is imposed upon all lands in the city, except those lands exempted under this chapter, which fees and charges shall be as set forth on the city of Auburn fee schedule.

B. The utility systems development charge as set forth in the city fee schedule will be computed to consider the future and/or current value of the utility system’s fixed assets, excluding contributions by developers, and outstanding bonded indebtedness, and will also consider an appropriate service unit.

C. The utility systems development charge imposed shall be reviewed annually by the city council and the charges may be revised to reflect changes in utility asset value, depreciation of the utility system fixed assets, bonded indebtedness, and the number of ERU, RCE or ESU customers served. (Ord. 6341 § 1, 2011; Ord. 5819 § 4, 2004; Ord. 5801 § 1, 2003; Ord. 5709 § 1, 2002; Ord. 5619 § 2, 2001; Ord. 5125 § 2, 1998; Ord. 4830 § 1, 1996; Ord. 4479 § 2, 1990; Ord. 3510 § 1, 1980.)

13.41.040 Collection.

The water, sanitary sewer and storm drainage utilities systems development charges are immediately due and payable upon obtaining a permit for connection to the city utility. Systems development charges for parcels that will utilize infiltration for storm water disposal are immediately due and payable upon obtaining a building permit to develop the parcel.

A. For residential development for new development, redevelopment or a change in use, during the effective period of April 4, 2011, through April 4, 2013, and prior to issuance of a permit application, the applicant may elect to record a covenant against title to the property on forms prepared and provided by the city that requires payment of water, sanitary sewer and storm drainage development charges due and owing, less any credits awarded, by providing for automatic payment through escrow of these development charges due and owing to be paid no later than at time of closing of the sale of the unit or at final inspection or issuance of certificate of occupancy or 18 months from the date of issuance of the original building permit, whichever comes first. Failure to pay shall result in the following:

1. If 30 days after the city has sent the responsible party written notification of its obligation to pay the charges established in this chapter the full amount remains unpaid, the responsible party shall be subject to the enforcement provisions of ACC 1.25.030 and 1.25.065. Written notification shall be by regular and certified mail and to the most current available contact information on file with the city. For the purposes of applying ACC 1.25.030 and 1.25.065, the responsible party shall constitute a property owner, the property(ies) for which a permit(s) has been issued shall constitute the property(ies) on which the violation is occurring, and the impact fee amount remaining unpaid shall constitute a violation occurring on the permitted property(ies) under these sections.

2. Any unpaid charges adopted by this chapter that are outstanding 30 days from the date the charges are due shall constitute a lien against the property(ies) for which a permit(s) have been issued in the amount of the unpaid charges. In addition to the actions authorized in subsection (A)(1) of this section, the city may record a lien against the permitted property(ies) in the amount of the unpaid charges and may immediately suspend any permits previously issued for the lot or unit associated with the current development activity and shall limit the granting of any future permits for the lot or unit until such time that all outstanding water, sanitary sewer and storm drainage development charges are paid in full.

3. The appeals process authorized in ACC 13.41.070 shall not apply to determinations made pursuant to this section.

B. For nonresidential development composed of new development, redevelopment or a change in use and inclusive of commercial office and retail uses, light and heavy manufacturing uses, but excluding warehousing and distribution uses, and institutional development including but not limited to public and private schools and colleges and hospitals, during the effective period of April 4, 2011, through April 4, 2013, and prior to the issuance of any permit application and following the execution of a payment agreement on forms prepared and provided by the city, the applicant may elect to pay water, sanitary sewer and storm drainage development charges due and owing, less any credits awarded, no later than prior to issuance of certificate of occupancy or 18 months from the date of issuance of the original building permit, whichever comes first. Failure to pay shall result in the following:

2. Any unpaid charges adopted by this chapter that are outstanding 30 days from the date the charges are due shall constitute a lien against the property(ies) for which a permit(s) have been issued in the amount of the unpaid charges. In addition to the actions authorized in subsection (B)(1) of this section, the city may record a lien against the permitted property(ies) in the amount of the unpaid charges and may immediately suspend any permits previously issued for the lot or unit associated with the current development activity and shall limit the granting of any future permits for the lot or unit until such time that all outstanding water, sanitary sewer and storm drainage development charges are paid in full.

3. The appeals process authorized in ACC 13.41.070 shall not apply to determinations made pursuant to this section. (Ord. 6341 § 1, 2011; Ord. 5801 § 1, 2003; Ord. 4830 § 1, 1996; Ord. 4479 § 2, 1990; Ord. 3610 § 2, 1981; Ord. 3510 § 4, 1980.)

13.41.050 Credits.

If a developer provides a capacity facility that benefits other properties as identified within the appropriate utility comprehensive plan, a systems development charge credit may be granted under the provisions of this chapter, and as negotiated between the land developer and the city engineer. Any systems development charge credits granted will be documented in writing. (Ord. 6341 § 1, 2011; Ord. 5801 § 1, 2003; Ord. 4830 § 1, 1996; Ord. 4479 § 2, 1990; Ord. 3510 § 5, 1980.)

13.41.060 Segregation and use of revenues.

All funds derived from the utility systems development charge are to be segregated by appropriate approved accounting practices from all other funds of the city, and that portion of the utility systems development charge calculated and collected on account of a utility shall be used for no other purpose than replacement, major repair, installing, constructing, and extending capacity facilities of the utility. (Ord. 6341 § 1, 2011; Ord. 5801 § 1, 2003; Ord. 4830 § 1, 1996; Ord. 4479 § 2, 1990; Ord. 3510 § 6, 1980.)

13.41.070 Appeals.

Appeals of the public works director’s determinations made pursuant to this chapter shall be filed with the public works department and shall be heard by the city’s hearing examiner pursuant to Chapter 18.66 ACC. Determinations on appeals shall be based on whether the decision being appealed was consistent with applicable state law and city codes. The hearing examiner’s determination shall be final unless appealed to the superior court of the county in which the property subject to the utility system development charges is located within the city of Auburn, in accordance with the procedures in RCW 34.05.510 through 34.05.598, and with the appeal being filed with the city clerk within 30 days after issuance of the decision of the hearing examiner. (Ord. 6341 § 1, 2011; Ord. 6182 § 3, 2008; Ord. 5801 § 1, 2003; Ord. 4830 § 1, 1996; Ord. 4479 § 2, 1990; Ord. 3510 § 7, 1980.)

13.41.080 Scope.

The utility systems development charge provided for in this chapter is separate from and in addition to any applicable tax, assessment charge, or other fee otherwise provided by law. (Ord. 6341 § 1, 2011; Ord. 5801 § 1, 2003; Ord. 4830 § 1, 1996; Ord. 4493 § 2, 1991; Ord. 3510 § 8, 1980.)