Chapter 12.40
PLANT INVESTMENT CHARGE
Sections:
12.40.010 Purpose.
12.40.020 Permits.
12.40.030 Property owner’s responsibilities.
12.40.040 Plant investment charge.
12.40.045 Additional water plant investment charge for Cedarhome benefit area.
12.40.050 Review of rates.
12.40.060 Collection.
12.40.070 Segregation and use of revenue.
12.40.080 Credits.
12.40.010 Purpose.
The city council of the city of Stanwood, Washington, has determined that it is reasonable and in the public interest to enact and impose a “plant investment charge” for the purpose of recovering an equitable share of the costs of water, sewer and drainage facilities from those properties within the utility service areas which, as a part of their development and use, create needs for those facilities. The city council finds that the public would benefit from a logical long range approach to the financing of necessary facilities. Experience has demonstrated that the lack of such provision casts an unfair and unexpected burden on taxpayers and residences in the form of taxes, bond interest costs and assessments when core or central facilities become inadequate, causing a crisis. Operating from crisis to crisis is wasteful, unsafe and no longer an acceptable method of local government, and debt financing should be minimized wherever possible. The “plant investment charge” herein described is designed and calculated to be of such amount as will eventually create reasonable reserves to pay the public’s fair share of basic and essential service facilities as the need arises. (Ord. 1107, 2001; Ord. 787 § 2, 1989).
12.40.020 Permits.
Owners of premises within the city utility service areas adjacent to and abutting upon the sanitary sewer system, water system, or drainage system, and which premises has not been previously assessed under a local improvement district, or some other method, may connect those premises to and utilize service from such systems upon receipt of a permit issued by the director of public works. Such permit shall be issued only upon written application to the director by the owner of the premises to be served and subject to the following terms and conditions:
(1) Payment of the appropriate fees for the systems:
(a) Water: Plant investment charge for water;
(b) Sewer: Plant investment charge for sewer;
(c) Drainage: Plant investment charge for drainage.
(2) The plant investment charges are separate and additional to the permit for water service connection, sewer connection, and drainage connection. (Ord. 1107, 2001; Ord. 787 § 3, 1989).
12.40.030 Property owner’s responsibilities.
(1) The property owner warrants that he/she is the owner of the property with full authority to bind the property with the covenants and conditions contained in the Stanwood Municipal Code.
(2) The property owner shall subject his property to the resolutions and ordinances of the city, and shall use the public sewers, water mains and drainage mains of the city in accordance with the rules, regulations and ordinances of the city, as they may be amended from time to time, and the property shall be subject to the regular schedule of sewer, water service and drainage charges of the city, as may from time to time be fixed by the city for its use classification, including, if the city so provides, a reasonable split rate for properties served in particular areas.
(3) The property described in the permit shall be the only property served with sewer, water and drainage service.
(4) The property shall be subject to liens, penalties and interest for nonpayment of sewer, water service and drainage charges, to the same extent as any other property served by the city.
(5) Credit shall be given on any future assessment in a local improvement district or utility local improvement district for any charge in lieu of assessment paid for that property, or any reasonable costs incurred by the property owner and allowed by the public works director or other authorized representative in installing sewer, water and drainage lines, which have been deeded to the city.
(6) Building sewers and water mains and other appurtenant facilities constructed and installed by the property owner shall be subject to the permit, design review, construction, inspection, connection, conveyance and other requirements of this chapter, including the required fees and charges.
(7) There shall be paid for the property plant investment charges as required by SMC 12.40.040.
(8) To protect the interests of the city, the public works director, city engineer, or other authorized representative of the city may require other conditions and provisions as the individual case may warrant, including, but not limited to, reasonable design requirements, design review and inspection requirements, and protective and safety requirements. (Ord. 1107, 2001; Ord. 787 § 4, 1989).
12.40.040 Plant investment charge.
(1) Water Plant Investment Charge.
(a) The city council hereby finds and determines that the capital cost of the city’s current and future water system, including pumps, wells, distribution lines, reservoirs and rights-of-way is $43,820,345. The capital cost of such system has been borne by the city and its water system users. Such water system will be utilized by newly connecting properties, and the capital cost, as applied to buildings presently served, is $6,122 per each three-quarter-inch water meter.
(b) Beginning January 1, 2010, and thereafter, in addition to other fees imposed by ordinance or pursuant to agreements, there is hereby imposed upon the owners of property seeking to provide water service to their property by connecting to the city’s water system a plant investment charge, determined by multiplying the total number of equivalent water connections proposed by $6,122. Equivalent connections and plant investment charges for all buildings shall be as follows:
|
Service Connection Size |
Equivalent Connection |
Charge |
|
Up to 3/4'' |
1.00 |
$6,122 |
|
1'' |
1.67 |
$10,224 |
|
1-1/2'' |
3.33 |
$20,386 |
|
2'' |
5.33 |
$32,630 |
|
3'' |
10.00 |
$61,220 |
|
4'' |
16.67 |
$102,054 |
|
6'' |
33.33 |
$204,046 |
|
8'' |
53.33 |
$326,486 |
(2) Sewer Plant Investment Charge.
(a) The city council hereby finds and determines that the capital cost of the city’s current and future sewer system, including pumps, collection pipelines, sewer treatment plant, and rights-of-way is $26,745,889. The capital cost of such system has been borne by the city and its sewer system users. Such sewer system will be utilized by newly connecting properties and the capital cost, as applied to buildings presently served, is $6,588 per each three-quarter-inch water meter.
(b) Beginning January 1, 2010, and thereafter, in addition to other fees imposed by ordinance or pursuant to agreements, there is hereby imposed upon the owners of property seeking to provide sewer service to their property by connecting to the city’s sewer system a plant investment charge, determined by multiplying the total number of equivalent connections by $6,588. Equivalent connections and plant investment charges for all buildings shall be as follows:
|
Service Connection Size |
Equivalent Connection |
Charge |
|
Up to 3/4'' |
1.00 |
$6,588 |
|
1'' |
1.67 |
$11,002 |
|
1-1/2'' |
3.33 |
$21,938 |
|
2'' |
5.33 |
$35,114 |
|
3'' |
10.00 |
$65,880 |
|
4'' |
16.67 |
$109,822 |
|
6'' |
33.33 |
$219,578 |
|
8'' |
53.33 |
$351,338 |
(3) Drainage Plant Investment Charge.
(a) The city council hereby finds and determines that the capital cost of the city’s drainage system, including pumps, collection pipelines and rights-of-way is $3,270,401. The capital cost of such system has been borne by the city and its drainage system users. Such drainage system will be utilized by newly developed properties, and the capital cost, as applied to buildings presently served, is $665.00 per each equivalent unit.
(b) Beginning January 1, 2010, and thereafter, in addition to other fees imposed by ordinance or pursuant to agreements, there is hereby imposed upon the owners of property seeking to develop within the city limits a drainage plant investment charge determined by multiplying the total number of equivalent residential units (ERU) by $665.00.
(i) Residential. An equivalent residential unit (ERU) is determined to be 3,000 square feet of impervious area. This is based on a lot size of up to 10,000 square feet. For plant investment charges for residential lots larger than 10,000 square feet, the ERUs will be calculated on the same basis as nonresidential development.
(ii) Nonresidential Development (Includes Multifamily Dwellings). Drainage plant investment charges for nonresidential development shall be calculated based on the number of equivalent residential units of impervious area of the proposed development, including fractions thereof. For example:
(A) 5,500 square feet of impervious area/3,000 = 1.83 x $665.00 = $1,217;
(B) 6,400 square feet of impervious area/3,000 = 2.13 x $665.00 = $1,416. (Ord. 1260 § 1, 2009; Ord. 1190 § 1, 2006; Ord. 1107, 2001; Ord. 1078, 1999; Ord. 940 § 1, 1995; Ord. 849 §§ 1, 2, 1992; Ord. 813 § 1, 1991; Ord. 787 § 5, 1989).
12.40.045 Additional water plant investment charge for Cedarhome benefit area.
(1) The city council hereby finds and determines that the capital costs of water system improvements in the Cedarhome area are $2,732,000. Said water system improvements will be utilized by newly connecting properties in the Cedarhome benefit area and the capital cost for each three-quarter-inch water meter shall be $2,570.
(2) The Cedarhome benefit area is hereby defined as that area shown in Exhibit A-1, titled Cedarhome Benefit Area and Exhibit A-2, titled Cedarhome Benefit Area Tax Account Numbers, attached to the ordinance codified in this section and incorporated by this reference.
(3) In addition to other fees imposed by ordinance or pursuant to agreements, there is hereby imposed upon the properties in the Cedarhome benefit area seeking to obtain water service by connecting to the city’s water system, a plant investment charge, determined by multiplying the total number of equivalent connections proposed by $2,570.
(a) Equivalent connections and plant investment charges for all buildings shall be as follows:
|
Service Connection Size |
Equivalent Connection |
Charge |
|
Up to 3/4" |
1.00 |
$2,570 |
|
1" |
1.67 |
$4,292 |
|
1-1/2" |
3.33 |
$8,558 |
|
2" |
5.33 |
$13,698 |
|
3" |
10.00 |
$25,700 |
|
4" |
16.67 |
$42,842 |
|
6" |
33.33 |
$85,658 |
|
8" |
53.33 |
$137,058 |
(4) All funds derived under this section shall be segregated from all other funds of the city. The entire portion of the water plant investment charge for the Cedarhome benefit area shall be used for no other purpose than the design, installation, and construction of the 400 zone 500,000-gallon elevated reservoir and transmission main; and Cedarhome booster pump station or debt service thereon. (Ord. 1190 § 1, 2006; Ord. 1126 § 1, 2002).
12.40.050 Review of rates.
The plant investment charges, as set forth in this chapter, will be adjusted annually based upon the Engineering News-Record (ENR) Construction Cost Index (the 20-city average), for a period not to exceed five years. This cost index tracks changes in construction costs for municipal construction projects. After five years, or whenever the city’s utility comprehensive plans or utility capital facility plans are updated and adopted by city council, whichever occurs first, the plant investment charges should be re-evaluated based on asset value, projected capital projects, projected growth, interest, and inflation. (Ord. 1190 § 1, 2006; Ord. 1107, 2001; Ord. 787 § 6, 1989).
12.40.060 Collection.
The plant investment charges are immediately due and payable upon, and concurrently with, the issuance of a valid building permit or a valid permit for connection to the sewer, water or drainage system of the city, whichever occurs first. (Ord. 1107, 2001; Ord. 787 § 7, 1989).
12.40.070 Segregation and use of revenue.
All funds derived from the plant investment charge are to be segregated by appropriate approved accounting practices from all other funds of the city. That portion of the plant investment charge calculated and collected on account of sewers shall be used for no other purpose than installing, constructing, and extending sewer facilities or debt service thereon; that portion of the plant investment charge calculated and collected on account of water shall be used for no other purpose than installing, constructing, and extending water facilities or debt service thereon; and, that portion of the plant investment charge calculated and collected on account of drainage shall be used for no other purpose than installing, constructing, and extending drainage facilities or debt service thereon. (Ord. 1107, 2001; Ord. 787 § 8, 1989).
12.40.080 Credits.
Credit may be granted under the provisions of this chapter toward the plant investment charge. Such credit may be granted when complying with the following guidelines:
(1) Water, sewer and drainage facilities and pipelines to be used for credit shall be installed in accordance with approved plans and specifications and accepted by the city for maintenance.
(2) Credit will not be granted in excess of the total charge for plant investment. (Ord. 1107, 2001; Ord. 787 § 9, 1989).