Chapter 13.12
WATERWORKS UTILITY RATES AND CHARGES

Sections:

13.12.010    Definitions.

13.12.020    Findings of fact—Water system.

13.12.030    Findings of fact—Sewer system.

13.12.040    Finding of fact—Waterworks utility and revenue bonds.

13.12.050    Rates and charges.

13.12.060    Water rates for lots connected to the water system.

13.12.080    Water service connection charges.

13.12.085    Water system development charges.

13.12.090    System development charge administration.

13.12.100    Other charges, fees, penalties, deposits and credits.

13.12.105    Water rates and charges, other charges, fees, penalties, deposits and credits for customers located outside of the existing city limits.

13.12.110    Water conservation plan.

13.12.115    Reduction in residential water rates and charges for low-income customers.

13.12.010 Definitions.

For the purposes of this chapter, the following words shall be defined as follows:

A.    “City” means the city of Ocean Shores, Washington, a duly organized noncharter code city.

B.    “Lot” means a lot as platted or created by subsequent division of a lot or parcel, or an equivalent lot as depicted by the city engineers on the utility lot designation maps of the city on file in the office of the city clerk/treasurer; provided, however, that in cases where a structure physically occupies parts of two or more lots, such lots shall be deemed to be one lot for the purposes of this chapter.

C.    “Maintenance and operation costs” means all reasonable costs incurred by the city in causing the water system or sewer system of the city to be operated and maintained in good repair, working order and condition, including payments of premiums for insurance, all costs and expenses relating to labor, employment benefits, power, light, heat, chemicals, equipment, repair of equipment and facilities due to normal wear, tools, supplies, materials, contract services, inspection, administration, billing and collection of charges, fees and assessments, and any state-imposed taxes but excluding any city-imposed utility taxes or payments in lieu of taxes payable from revenue of the waterworks utility and also excluding any reserves for depreciation.

D.    “Multifamily—Type 1” means motels, hotels, apartments, rooming houses, lodging houses and condominiums providing a rental or lease of more than thirty days.

E.    “Multifamily—Type 2” means motels, hotels, apartments, rooming houses, lodging houses and condominiums providing a rental or lease for thirty days or less.

F.    “Sewer system” means the existing sanitary sewage collection and treatment system serving the city consisting of pressure lines to the treatment plant, a treatment plant, two pump stations, and some gravity collector lines.

G.    “Water system” means the water supply and distribution system of the city which includes a deep well supply, an iron removal treatment plant, an elevated steel tank, two groundlevel storage tanks and a gravity distribution system which is being converted to a constant pressure system regulated by two pumps, complete with all necessary hydrants, valves, fittings and appurtenances.

H.    “Waterworks utility” means the combined water system and sewer system of the city, as combined by Ordinance No. 259, together with all additions thereto and betterments and extensions thereof hereafter made, and including any storm and surface water system of the city hereafter combined with or made a part of such municipal water and sewage utility, and also including plants, facilities and equipment for refuse collection and disposal should they later be combined with or made a part of such municipal water and sewage utility.

(Ord. 881 § 1, 2010; Ord. 458 § 2, 1988; Ord. 358 § 3, 1983; Ord. 304 § 1, 1981; Ord. 300 § 1, 1980)

13.12.020 Findings of fact—Water system.

The city council makes the following findings of fact concerning the water system:

A.    Nearly all areas of the city are served by the water system which includes ninety-three miles of water mains.

B.    There are approximately twelve thousand lots within the city, all of which lots front upon, abut, or have access to a public water main or service line.

C.    There are approximately one thousand five hundred lots connected to the water system.

D.    The city currently allows the placement of recreational vehicles on lots for a period not to exceed sixty days per calendar year without requiring such recreational vehicles to be connected to the water system during such period of location.

E.    The city provides fire protection at all times to all property located within the city, including recreational vehicles situated on lots which are not connected to the water system.

F.    The design and engineering integrity of the water system require that the entire water system be maintained on an ongoing basis, with all components of the water distribution system receiving essentially equivalent maintenance regardless of the presence or absence of connections along segments of the water distribution system.

G.    The cost of ongoing, system-wide maintenance is the same throughout the water system.

H.    Approximately eighty-eight percent of the lots fronting upon the water distribution system currently pay no charge for water service.

I.    From September 1976 to January 1978, the city formed a local improvement district (LID) and four utility local improvement districts (ULIDs) for the purpose of constructing additions and betterments to the water system with a combined approximate total construction cost of three million seventy-eight thousand two hundred eighty-five dollars.

J.    The number of written protests received from property owners by the city on the formation of the LID and ULIDs mentioned in subsection (I) of this section was one percent to two percent of the affected property owners who had been given both mailed and published notice of the city council’s intention to create such special benefit assessment districts, as required by law.

K.    Adequate fire protection service requires larger mains, higher pressure and greater reserve capacity than would be required by a system limited to the provision of water for domestic consumption. The rate at which water must be supplied to a fire is so great that fire flow is the largest variable imposed on the water system.

L.    The water system is principally a looped system, which design aids in ensuring adequate fire protection for the entire city and, through the circulation of water, aids in limiting staleness of the water.

M.    Due to the quality of the water system, the city has improved its fire rating from eight to six as determined by the state Survey and Rating Bureau.

N.    The current population of the city is one thousand seven hundred eighty persons, and population projections indicate that it will triple to five thousand to six thousand people by the year 2000.

O.    Actual housing starts within the city during 1979 doubled or tripled earlier projections, which housing starts do not include placement of mobile homes.

P.    The city’s average peak daily water demands are projected to double by 1990.

Q.    Growth projections indicate that an additional source to supply water for the water system will be required by 1981—1982.

R.    Additional in-system storage will be required for the water system by about 1985.

S.    The city must construct certain short-term improvements to the water distribution system.

T.    The city must research the feasibility of future development of the Humptulips River as an alternative long-term source of water.

U.    The implementation schedule for the short-term improvements to the water system and the required studies, all of which should be completed by 1985, will cost, based upon 1980 dollars, in excess of one million three hundred sixty thousand dollars.

V.    In the absence of completion of the short-term improvements and assuming the level of projected growth, it may become necessary by 1982 for the city to impose a moratorium on new construction and new connections to the water system due to an inadequate supply of water.

W.    Water rates within the city have not been raised since 1972.

X.    The city’s approximate current annual maintenance and operation costs for the water system are one hundred thousand dollars, which figure presently is being impacted sharply due to the effect of inflation on the cost of materials and labor.

(Ord. 304 § 2, 1981; Ord. 300 § 2, 1980)

13.12.030 Findings of fact—Sewer system.

The city council makes the following findings of fact concerning the sewer system:

A.    The sewer system primarily serves the commercial area at the northwest corner of the city and marina facility at the south end of the city.

B.    Sewer rates within the city have not been raised since 1986.

C.    The city’s annual maintenance and operation costs for the sewer system is being impacted sharply due to the effect of inflation, cost of materials and labor, and demands on the system.

D.    There are approximately four hundred forty-five lots within the city which access to the sanitary sewer system, but only approximately forty-five percent of those lots are connected to the system.

E.    The design and engineering integrity of the sanitary sewer system require that the entire system be maintained on an ongoing basis, with all components of the distribution system receiving essentially equivalent maintenance regardless of the presence or absence of connections along segments of the sanitary sewer distribution system.

F.    Approximately fifty-five percent of the lots having access to the sanitary sewer system currently pay no charge for the availability of service and the maintenance and operation of the system.

G.    Growth projections suggest that additional improvements to the sanitary sewer system will be required to handle anticipated loads and the system does not presently generate sufficient income to pay for the anticipated costs of those improvements and projected maintenance and operation costs.

(Ord. 490 § 1, 1989: Ord. 300 § 3, 1980)

13.12.040 Finding of fact—Waterworks utility and revenue bonds.

Revenues from the waterworks utility are insufficient to meet the combined financial requirements of maintenance and operation, short-term and long-term improvements, and the coverage requirements, parity conditions and other covenants contained in the city’s outstanding water and sewer revenue bonds heretofore issued in 1978 and 1979 in the respective aggregate principal amounts of one million eight hundred eighty thousand dollars and five hundred thousand dollars, which insufficiency will continue and become greater if the water and sewer rates are not increased. Such insufficiency of revenues, if not corrected, also would prevent the issuance on a parity of lien with the city’s outstanding revenue bonds of its contemplated “Water and Sewer Revenue Bonds, 1980” required to be issued as soon as reasonably possible to provide the funds needed to pay, redeem and retire the approximately one million dollar principal amount of interim warrants heretofore issued to finance the installation of water facilities in ULID No. 5, which warrants now are becoming due and payable. (Ord. 300 § 4, 1980)

13.12.050 Rates and charges.

The rates and charges set forth in this chapter shall be considered rates and charges for the waterworks utility. It is found and declared that the classifications, rates and charges set forth in Sections 13.12.060 through 13.12.100 are fair and equitable. (Ord. 300 § 5, 1980)

13.12.060 Water rates for lots connected to the water system.

The rates and charges for water service to lots connected to the water system within the corporate limits of the city are fixed and established as follows:

A.    The minimum monthly rate charge is based on meter size per the following schedule:

Monthly Rate Charge Effective January 1, 2017

Meter Size

Residential

Commercial

Multifamily 1

Multifamily 2

5/8"

$25.75

$28.78

$28.78

$28.78

3/4"

$27.96

$31.00

$31.00

$31.00

1"

$32.39

$35.47

$35.47

$35.47

1-1/2"

$43.50

$46.54

$46.54

$46.54

2"

$56.83

$59.86

$59.86

$59.86

3"

$92.31

$95.37

$95.37

$95.37

4"

$132.27

$135.30

$135.30

$135.30

6"

$187.72

$190.77

$190.77

$190.77

Hydrants

$25.75

$28.78

$28.78

$28.78

Monthly Rate Charge Effective January 1, 2018

Meter Size

Residential

Commercial

Multifamily 1

Multifamily 2

5/8"

$28.07

$31.37

$31.37

$31.37

3/4"

$30.48

$33.79

$33.79

$33.79

1"

$35.31

$38.66

$38.66

$38.66

1-1/2"

$47.42

$50.72

$50.72

$50.72

2"

$61.94

$65.25

$65.25

$65.25

3"

$100.62

$103.95

$103.95

$103.95

4"

$144.17

$147.48

$147.48

$147.48

6"

$204.61

$207.94

$207.94

$207.94

Hydrants

$28.07

$31.37

$31.37

$31.37

Beginning January 1, 2020, and every January 1st thereafter, the city will increase the monthly rate charges using the United States Department of Labor, Bureau of Labor Statistics Consumer Price Index (CPI) for All Urban Consumers, Subgroup “All Items” for Seattle-Tacoma-Bremerton June to June. The CPI increase shall not be less than zero percent or greater than three percent in any year.

B.    Commodity Charge. The monthly commodity charge is charged per the following schedule regardless of water meter size:

Commodity Charge Effective January 1, 2017

$/CF/MO

Customer Class

Rate

Residential

$0.03100

Commercial

$0.03830

Multifamily—Type 1

$0.03052

Multifamily—Type 2

$0.03447

Commodity Charge Effective January 1, 2018

$/CF/MO

Customer Class

Rate

Residential

$0.03379

Commercial

$0.04175

Multifamily—Type 1

$0.03327

Multifamily—Type 2

$0.03757

Beginning January 1, 2020, and every January 1st thereafter, the city will increase the commodity charges based upon the United States Department of Labor, Bureau of Labor Statistics Consumer Price Index (CPI) for All Urban Consumers, Subgroup “All Items” for Seattle-Tacoma-Bremerton June to June. The CPI increase shall not be less than zero percent or greater than three percent in any year.

C.    Contracts Authorized. The city council may enter into contracts with water users deviating from such rates where special circumstances dictate; provided that such rates shall not be discriminatory.

D.    Fire Protection Services.

1.    The city provides fire protection services and facilities through the water system to all property, improved or unimproved, in the city. Those services and facilities include maintenance of fire flows and the systems of mains and hydrants throughout the city. In addition, the city provides for maintenance and the availability of water for certain properties improved with private hydrants and fire protection systems. Additional rates for these systems are set forth in subsection (D)(2) of this section.

2.    The following monthly fire protection charge is imposed, based on hydrant size maintained by individual properties within the city. Beginning on the first day of January 2000 and for each and every succeeding year after 2000, the rate per hydrant shall be as follows:

Hydrant Size

Amount

2"

$ 4.26

3"

12.78

4"

25.56

6"

70.99

8"

$149.08

10"

255.56

(Ord. 977 § 1, 2016; Ord. 938 § 1, 2014; Ord. 879 § 1, 2010; Ord. 789 § 2, 2005; Ord. 768 § 2.1, 2003: Ord. 750 § 2.1, 2002: Ord. 740 § 2.1, 2002: Ord. 725 § 2.1, 2001: Ord. 705 § 2.1, 2000: Ord. 666 § 2.1, 1999: Ord. 627 § 1, 1997: Ord. 552 § 1, 1993: Ord. 300 § 6, 1980)

13.12.080 Water service connection charges.

A.    Any property owner within the corporate limits of the city and within water utility local improvement districts Nos. 3A, 3B, 3C, 3D, 3F, Division 10 extension and Mount Olympus extension applying for meter installation and not requiring a main tap shall pay the minimum charge as follows:

Meter Size

Minimum Charge

5/8"—3/4"

$295.00

1"

415.00

Over 1"

The minimum charge shall be the actual cost of the meter and installation plus fifteen percent.

B.    Any property owner within the corporate limits of the city and within water local improvement district No. 1, or water utility local improvement districts Nos. 2, 3, 4 and 5, or otherwise requiring a main tap, applying for a new water service shall pay a service, material and connection charge. This charge will include the cost of connection, meter and laying of pipe from the city water main to the property. The minimum charge so established is as follows:

Meter Size

Minimum Charge

5/8"—3/4"

$710.00

1"

945.00

Over 1"

The minimum charge shall be the actual cost of the meter and installation plus fifteen percent.

C.    Cost shall be the cost to the city of the pipe, valves, connections, meters and appurtenances necessary to the installation of the service line and of the labor required to do the work. All service material including the water meter shall remain the property of the city.

(Ord. 705 § 2.3, 2000: Ord. 666 § 2.3, 1999: Ord. 627 § 3, 1997: Ord. 552 § 5, 1993: Ord. 304 § 3, 1981: Ord. 300 § 8, 1980)

13.12.085 Water system development charges.

A.    Effective on and after October 1, 2003, any property owner within the corporate limits of the city applying for meter installation shall pay the following system development charge for the use of the water system:

Water Meter Size

ERU’s

SDC

5/8"—3/4"

1

$ 1,549.00

3/4"

1.5

2,324.00

1"

2.5

3,873.00

1-1/2"

5

7,745.00

2"

8

12,392.00

3"

16

24,785.00

4"

25

38,726.00

For water meter sizes larger than four inches, charges will be proportional to established charges.

B.    The water system development charge for all residential and commercial customers located outside the corporate limits of the city shall be one hundred fifteen percent of the applicable charge established under this section.

(Ord. 757 § 1 (part), 2003)

13.12.090 System development charge administration.

A.    Revenues from water system development charges shall be accounted for separately from other funds. System development charges and interest earned thereon may be expended only for capital costs, including interest expense, for which the system development charges were imposed.

B.    The following situations shall be exempted from payment of the system development charges as outlined in 13.12.085:

1.    Alterations or expansion of an existing building where no additional or larger water meter connections are requested.

2.    The replacement of a building or structure with a new building or structure of the same size and use where no additional or larger water connections are requested.

3.    A change in water meter size shall not be exempted from payment of the system development charge; however, a credit shall be given for the current system development charge on the old meter size.

4.    No system development charge shall be required, nor credited for a change in water meter size that results in a decrease in meter size.

5.    Upon city council approval, an exemption from or a reduction in the amount of the system development charge on land development that provides low-cost housing may be made.

(Ord. 757 § 1 (part), 2003)

13.12.100 Other charges, fees, penalties, deposits and credits.

Other charges, fees, penalties, deposits and credits are fixed and established as follows:

A.    Meter test deposit, forty-one dollars and fifty cents;

B.    Service rendered for less than a month, prorated by the day;

C.    Emergency service calls during regular business hours, no charge; nonemergency service calls during regular business hours, thirty dollars;

D.    Service calls during other than regular business hours, where it is determined that the problem is caused by failure of the customer’s service line or plumbing or piping, fifty-three dollars and fifty cents;

E.    Unauthorized water turn-on charge, fifty-nine dollars;

F.    Restoration of service after water service has been discontinued by the city for violation of ordinance or for failure to pay water charges:

1.    During regular business hours, fifty-three dollars and fifty cents;

2.    During other than regular business hours, seventy-one dollars;

G.    Penalty for delinquency, if water charges are not paid within twenty days from the date of billing, shall be imposed in accordance with Section 13.06.350;

H.    Temporary water supply, one hundred eighteen dollars and fifty cents plus water used at the current excess water rate per one hundred feet or fraction thereof;

I.    Meter exchange credit, based on a depreciation schedule of twenty percent per year for the number of years the meter has been in service, but in no event shall the credit exceed the charge for the change;

J.    There shall be no exchange credit for a change in water line size, except that a meter credit as provided in subsection I of this section will be allowed;

K.    Return check charge (for any reason), twenty-three dollars and fifty cents;

L.    Charge to remove a water meter at the request of property owner, forty-one dollars and fifty cents;

M.    Charge for reinstallation of water meter which was pulled at the request of the property owner shall be one hundred fifty dollars and shall be charged whether reinstallation is for the same owner or a new owner;

N.    Any contractor who wishes to regularly use water supplied by the city in the conduct of his/her business and due to the nature of his/her work relocates frequently may contract with the city for the use of water under the following terms and conditions:

1.    The contractor must register with the city’s water department,

2.    The contractor must supply a city-approved water meter, transfer hoses and the equipment necessary to connect to the city’s water system together with such other equipment as may be required by the city’s water department,

3.    The contractor shall present at time of registration his/her water meter(s) for registration, reading and scheduling of future meter readings,

4.    The contractor shall pay the sum of one hundred dollars per month per water meter in addition to paying for all water used at the then current bulk rate per one hundred cubic feet (or fraction thereof),

5.    The contractor shall present his/her registered water meter(s) for reading at the city’s water department at least one time each month as scheduled regardless of whether such meter has been used by the contractor or not.

Any contractor who fails to conform to the above shall have his/her water drawing privileges suspended immediately. Delinquent accounts shall result in loss of water drawing privileges and shall bear interest at the rate of twelve percent per year. Such water drawing privileges shall only be reinstated upon compliance with the above terms and conditions and/or payment of any delinquency and upon paying a reinstatement fee of fifty dollars per meter.

(Ord. 736 § 2, 2002; Ord. 705 § 2.4, 2000: Ord. 675 § 3, 2000: Ord. 666 § 2.4, 1999: Ord. 627 § 4, 1997; Ord. 614, 1997; Ord. 552 § 8, 1993: Ord. 490 § 3, 1989; Ord. 358 § 30, 1983: Ord. 339 § 1, 1982; Ord. 304 § 5, 1981: Ord. 300 § 11, 1980)

13.12.105 Water rates and charges, other charges, fees, penalties, deposits and credits for customers located outside of the existing city limits.

A.    The water rates and charges for all residential and commercial customers located outside of the corporate limits of the city shall be one hundred fifty percent of the applicable rates established under Section 13.12.060.

B.    The other charges, fees, penalties, deposits and credits for all residential and commercial customers located outside of the corporate limits of the city shall be one hundred fifty percent of the applicable rates established under Section 13.12.100.

C.    Water rates and charges as well as other charges, fees, penalties, deposits and credits for other classes of customers located outside of the corporate limits of the city shall be fixed by the city council and written agreements shall be made between the city and each of these users.

(Ord. 705 § 2.5, 2000: Ord. 666 § 2.5, 1999: Ord. 552 § 9, 1993)

13.12.110 Water conservation plan.

The city manager or his designee shall develop and implement a water conservation plan on or before July 1, 1993. This water conservation plan shall be adopted by the city council by resolution and may include provisions such as public information and education, customer technical assistance, residential and commercial showerhead and faucet retrofit, residential and commercial toilet retrofits and the development of alternative residential and commercial irrigation systems. (Ord. 705 § 2.6, 2000: Ord. 666 § 2.6, 1999: Ord. 552 § 10, 1993)

13.12.115 Reduction in residential water rates and charges for low-income customers.

A.    Residential customers whose qualifying income is at or below one hundred twenty-five percent of the currently available national poverty guideline as established by the U.S. Department of Health and Human Services will be entitled to a reduction in the rates and charges established in Section 13.12.060(A) (“base rate”).

B.    Residential customers whose qualifying income is at or below one hundred twenty-five of the currently available national poverty guideline as established by the U.S. Department of Health and Human Services will be entitled to a reduction in the rates and charges established in Section 13.12.060(B) (“commodity charge”).

C.    Qualifying income shall be the total adjusted gross income (AGI) of all people living in the residence for the calendar year immediately preceding the year the reduction is applied for.

D.    For those customers who qualify under the provisions of subsections A, B, and C of this section, the water base rates shall be fixed at an amount equal to one-half of the rate established in Section 13.12.060(A), and the commodity charge shall be fixed at an amount equal to one-half of the applicable rate established in 13.12.060(B).

E.    Such a reduction in water rates and charges shall take effect on the first day of the month following the receipt of a written request from the residential customer together with copies of their Internal Revenue Tax Forms as detailed in subsection C of this section.

F.    An approved application for reduction in water rates under the provisions of this section shall be valid for a term of twelve months. No sooner than thirty days before, nor later than thirty days after the expiration of that term, the residential customer may reapply for an additional twelve-month term. The process for the submission, review and approval of that renewal shall be the same as for the initial application.

G.    The reduction in rates contemplated under this section shall only be available to single-family residential customers and shall not be valid for other multifamily structures, such as apartments, boardinghouses, or other similar commercial customers.

(Ord. 773 § 1, 2004; Ord. 733 § 2, 2002; Ord. 705 § 2.7, 2000: Ord. 666 § 2.7, 1999: Ord. 627 § 5, 1997: Ord. 552 § 11, 1993)