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HomeMy WebLinkAboutCOW 2004-08-09 Item 5A - Ordinance - Water Connection Fees for New Development in Duwamish Neighborhood J .„W0.A. Ii; COUNCIL AGENDA SYNOPSIS sy'' I nitial ITEMNO. �O -*Li p o 1 M eeting Date 1 Prepared by 1 Mayo review 1 Cov review 1 c 0 '•,,V1/4 -2--- \--i 1 1 I 8/ 9/ 04 1 MC I ,A...4- I c l /,nn 6/' 1 N 5, a rsos 1 1 1 1 1 I I 1 1 ITEM INFORMATION CAS NUMBER: 04-112 1 ORIGINAL AGENDA DATE: AUGUST 9, 2004 AGENDA ITEM TITLE Approve Ordinance setting the water connection fees for any new development in the Duwamish neighborhood. CATEGORY Discussion Motion Resolution Ordinance Bid Award Public Hearing Other Mtg Date Mtg Date Mtg Date Mtg Date 8/9/04 Mtg Date Mtg Date Mtg Date SPONSOR Council Mayor Adm Svcs DCD Finance Fire Legal Pd9R Police PW/ SPONSOR'S The City and Val Vue Sewer District completed the water, sewer, surface water and street SUMMARY improvements in the Duwamish neighborhood. Water connection fees for new development can now be set. Costs for the water construction equaled $397,543 and a total of 100 water connections are possible in that neighborhood. This sets the initial connection fee at $3,975.44 increasing 1% over 10 years. REVIEWED BY COW Mtg. CA &P Cmte F &S Cmte Transportation Cmte Utilities Cmte Arts Comm. Parks Comm. Planning Comm. DATE: 8/3/04 RECOMMENDATIONS: SPONSOR /ADMIN. Approve Ordinance setting Duwamish Water Connection Fees CoMMITrEE Forward to COW and then Regular for approval COST IMPACT FUND SOURCE EXPENDITURE REQUIRED AMOUNT BUDGETED APPROPRIATION REQUIRED Fund Source: 403.01 WATER FUND Comments: MTG. DATE RECORD OF COUNCIL ACTION 1 1 1 1 MTG. DATE ATTACHMENTS 8/9/04 Information Memo dated 7/27/04 (revised after UC) Ordinance I Map of Duwamish neighborhood boundaries 1 I INFORMATION MEMO To: Mayor Mullet From: Public Works Director,~O~ Date: July 27, 2004 Subject: Duwamish Area Water Connection Fees ISSUE Approve ordinance setting the water connection fees for any new development in the Duwamish neighborhood. BACKGROUND The City of Tukwila and the Val Vu¢ Sewer District completed the water, sewer, surface water and street improvements in the Duwamish neighborhood. In 2002, Ordinance No. 2007 required connection to the sewer line and set the boundaries of the neighborhood. Now that the entire costs have been determined and the project has been closed out, we are able to set the water connection fees for any new development. ANALYSIS The water costs equaled $397,543.74 and we estimate that a total of 100 water connections, both existing and new, are possible in that neighborhood. This sets the initial connection fee at $3,975.44. New development is estimated between 20-40 new water conneetious and they will be required to pay the water connection fee before approval of the building permit. Houses currently connected to the water system will not be assessed a water connection fee and are covered under the water fund and their monthly water bill. Along with Val Vue Sewer Distxict, we financed the project with a 20-year loan. RCW 35.92.025 allows the City to charge for the installation of water systems such that the property owners bear their equitable share. This also includes interest charges for a period not to exceed ten years at a rate commensurate with the rate of interest applicable to the City. The Public Works Trust Fund loan is for 20 years at ~ % interest and we are setting the connection fees to increase 1% each year over a ten-year period. RECOMMENDATION Approve ordinance setting the water connection fees for the Duwamish neighborhood. attachment DI ,qF'T ~ ORDIN~a~.NCE OF THE ~I'I~Z ~O~N~IL OF THE ~I~'~ OF 'IID~LA; WASHINGTON, ESTAB~I$I-IIN~ WATIRR ~ONNE~TION ~ES FOR THE DUI~/~MISH NEIGHBORHOOD~ PRO¥IDIN~ FOR SEYEI~kBILI~ WHEREAS, upon completion of the Duwamish neighborhood revitalization project that installed water, sewer, surface water and street improvements, the City Council desires to have in place an equitable and adequate rate structure to finance the operation and maintenance of the water utility; and WHEREAS, the water infrastructure construction was a joint project with the Val Vue Sewer District and was initially financed with a Public Works Trust Fund Loan; and WHEREAS, the water lines meet Washington State Department of Health standards, including minimum water pipe diameter of eight inches; and WHEREAS, Duwamish water construction project costs totaled $397,543.74; and WHEREAS, the City has determined that there may be approximately 100 connections in the Duwamish service area, setting the initial water connection charge at $3,975.44; WHEREAS, the City Council desires that any new water connection should be assessed a proportionate connection charge, determined by the infrastructure construction cost and total number of potential connections; and NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, HEREBY ORDAINS AS FOLLOWS: Section 1. Duwamish Regular Water Connection Charges. A. Existing facilities in the Duwamish neighborhood which are connected to the water system on the effective date of this ordinance will not be assessed a water connection fee. B. Water connection for any new single-family connection in the Duwamish neighborhood will be assessed the following fees, which reflect a 1% increase per year in accordance with RCW 35.92.025: Until Charge January 31, 2006 .................. $3,975.44 January 31, 2007 .................. $4,015.19 January 31, 2008 .................. $4,055.34 January 31, 2009 .................. 54 095.89 January 31, 2010 .................. $4 136.84 January 31, 2011 .................. $4 178.20 January 31, 2012 .................. $4 219.98 January 31, 2013 .................. $4 262.17 January 31, 2014 .................. $4 304.79 January 31, 2015 .................. 54 347.83 Duwamish Water 815104 1 of 2 C. The applicable water connection charge shall be paid before the City gives any final building permit approval. Section 2. Service Area Boundaries. The Duwamish service area is bordered by the Duwamish River on the north and the east; East Marginal Way South on the west; and Interurban Avenue South on the south, as shown on Exhibit A. Section 3. Severability. If any section, subsection, paragraph, sentence, clause or phrase of this ordinance or its application to any person or situation should .be held to be invalid or unconstitutional for any reason by a court of competent jurisdiction, such invalidity or unconstitutionality shall not affect the validity or constitutionality of the remaining portions of this ordinance or its application to any other person or situation. Section 4. Effective Date. This ordinance or a summary thereof shall be published in the official newspaper of the City, and shall take effect and be in full force five days after passage and publication as provided by law. PASSED BY THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, at a Regular Meeting thereof this day of ,2004. ATTEST/AUTHENTICATED: Steven M. Mullet, Mayor Jane E. Cantu, C. MC, City Clerk Filed with the City Clerk: APPROVED AS TO FORM BY: Passed by the City Council: Published: l~..f[ective Date: Office of the City Attorney Ordinance Number: Duwamish Water 8/5104 2 of 2 Exhibit A