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Home My WebLink AboutUtilities 2007-08-08 Item 3B - Ordinance - Allentown Phase II / Foster Point Water and Sewer Connection FeesINFORMATION MEMO To: Mayor Mullet From: Public Works Director} 1) Date: July 17, 2007 Subject: Allentown Phase II and Foster Point Water and Sewer Connection Fees ISSUE Approve ordinance setting the water and sanitary sewer connection fees in the Allentown Phase II and Foster Point neighborhoods. BACKGROUND The City of Tukwila has completed the water, sanitary sewer, and surface water improvements in the Allentown Phase II and Foster Point neighborhoods. The entire costs have been determined and we are now able to set water and sewer connection fees. The sewer connection fee was capped at $15,000 by the City Council at the April 24, 2006, Committee of the Whole Meeting. The City has recovered a portion of the construction cost on the Allentown Phase I, Ryan Hill, and Duwamish neighborhood improvement projects through connection fees for new connections to the water and sewer systems. RCW 35.92.025 allows the City to charge for the installation of water and sewer 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 that commensurate with the rate that of interest applicable to the City. ANALYSIS The sanitary sewer costs for Allentown Phase II and Foster Point totaled $4,917,229.68 with an estimated total of 250 possible connections to the sanitary sewer system. The connection fee based on 250 connections is $19,668.92, however the City Council capped the sewer connection fee at $15,000 on April 24, 2006. The water costs for Allentown Phase II and Foster Point totaled $2,061,782.25 with an estimated total of 250 possible connections to the water system. Dividing the $2,061,782.25 by 250 connections is $8,247.13 for the start amount of the water connection fees. The water and sewer connection fees will go up each year. The rate will be 4% on the first year and will increase by that same dollar amount every year for 10 years. RECOMMENDATION Approve ordinances setting the water and sanitary sewer connection fees for Allentown Phase II and Foster Point neighborhoods. anachment: Ordinance (P:ProjectslOtsw021memo07] ]07sm Sewer Water Connection Fees) 9 t 0 ORDINANCE NO AN ORDINANCE ESTABLISHING WATER CONNECTION FEES FOR ALLENTOWN PHASE II AND FOSTER POINT, SEWER CONNECTION FEES FOR ALLENTOWN PHASE II AND FOSTER POINT; PROVIDING FOR SEVERABILITY; AND ESTABLISHING AN EFFECTIVE DATE. WHEREAS, upon completion of the Allentown Phase II and Foster Point neighborhood revitalization project that installed water, sewer, and surface water improvements, the City Council desires to have in place an equitable and adequate rate structure to finance the operation and maintenance of the water and sewer utilities; and WHEREAS, water and sewer lines meet Washington State Department of Health standards including minimum water pipe diameter of 8 inches, and WHEREAS, any new water or any sewer connection will be assessed a connection fee that is determined by the infrastructure construction cost and total number of potential connections, and WHEREAS, Allentown Phase II and Foster Point water construction costs have been projected based on approximately 250 connections. WHEREAS, Allentown Phase II and Foster Point sanitary sewer construction costs have been projected based on approximately 250 total connections, and NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, HEREBY ORDAIN AS FOLLOWS: Section 1. Allentown Phase II and Foster Point Sewer Connection Charges. A. Allentown Phase II and Foster Point homes existing on September 1, 2007 will be required to connect to the sewer and pay associated connection charges if any portion of any building is situated within 250 feet of a sanitary sewer line or lateral and if: 1. septic or health problems are identified by King County Health Department that require repair of the septic tank system, or 2. the home changes ownership, or 3. remodeling occurs adding a bathroom or bedroom. B. Tukwila's Allentown Phase II and Foster Point sewer connection fee will start at $15,000 and increase by $600.00 (4% of $15,000) per year until 2017 in accordance with RCW 35.92.025: until charge December 31, 2008 $15,000.00 December 31, 2009 $15,600.00 December 31, 2010 $16,200.00 December 31, 2011 $16,800.00 December 31, 2012 $17,400.00 December 31, 2013 $18,000.00 December 31, 2014 $18,600.00 December 31, 2015 $19,200.00 December 31, 2016 $19,800.00 December 31, 2017 $20,400.00 in accordance with RCW 35.92.025 where it is capped at $20,400.00. C. Payment options for Tukwila's Allentown Phase II and Foster Point sewer connection fees are as follows: 1. Connection fees for Allentown Phase II and Foster Point residences existing September 1, 2007 may defer the sewer connection fee if applicants qualify as a low income household in accordance with current City policies that are in effect at the time of application. The sewer connection fee will be placed as a lien on the property's title and must be paid before there is a change of ownership. 2. Connection fees for Allentown Phase II and Foster Point residences existing September 1, 2007 may pay the sewer connection fee on a time plan with their monthly water bill. The monthly payment with an annual interest rate of 4% will be calculated for a 5 10 or 15 -year term. Only existing individual single family applicants are eligible for the payment plans. 3. New homes constructed after September 1, 2007 are required to make full sewer connection fee payment before issuance of the City of Tukwila's building permit. New homes are also required to pay in full the current fee set for the King County Sewer capacity charge and bring proof of payment to the City's Permit Center prior to the Public Work's final inspection approval. 4. Change of ownership requires payment in full of the sewer connection fees. Remodeling construction is required to pay sewer connection fees prior to issuance of building permit unless home is on the payment plan, which may be continued. 5. Monthly payments may be started prior to obtaining a sewer connection permit. 11 1�- 6. Monthly payments may be initiated as a payment method until December 31, 2017 for Allentown Phase II and Foster Point. After December 31, 2017, the sewer connection fee must be paid in full. D. Notice of sewer availability and connection requirements shall be placed on titles of properties within Tukwila's Allentown Phase II and Foster Point area with sewer service. Section II. Allentown Phase II and Foster Point regular water connection charges. A. Residences existing prior to September 1, 2007 and connected to the water system will not be assessed a water connection fee. B. New homes constructed after September 1, 2007 are required to make full water connection fee payment upon issuance of the building permit. C. Tukwila's Allentown Phase II and Foster Point water connection fees will start at $8,247.13 for any new single family water connection and will increase by $329.88 (4% of $8,247.13) per year until 2017 in accordance with RCW 35.92.025: until charge December 31, 2008. 8,247.13 December 31, 2009. 8,577.01 December 31, 2010 8,906.89 December 31, 2011, 9,236.77 December 31, 2012 9,566.65 December 31, 2013, 9,896.53 December 31, 2014 $10,226.41 December 31, 2015 $10,556.29 December 31, 2016 $10,886.17 December 31, 2017 $11,216.05 in accordance with RCW 35.92.025 where it is capped at $11,216.05. Section III. Service area boundaries. See attached map of parcels within service area of this ordinance Section W. Funding recovery review. The successful implementation of later phases of the Sewer Plan for the 4 residential areas is dependent on the repayment of general fund revenues from the connection fees. The City Council will review connection requirements, exemptions and other revenue recovery alternatives to insure that the sewer plan remains viable and adequately funded. Section V. Severability. If 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 or constitutionality of any other section, sentence, clause or phrase of this ordinance. Section VI. 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 (5) 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 2007. ATTEST/AUTHENTICATED: Jane E. Cantu, CMC, City Clerk APPROVED AS TO FORM: By Office of the City Attorney Filed with the City Clerk: Passed by the City Council: Published: Effective Date: Ordinance Number: Steven M. Mullet, Mayor 1 3