HomeMy Public PortalAboutORD 215-08-17_Amending Water System Connection Fees_08152017instrument 11 1W:i0697
Bonneville County, Idaho Falls, Idaho
08/17/2017 12:23:50 PM No. of Pages: 10
Recorded for CITY OF IONA
Penny Manning Fee: $0.00
Ex-Officio Recorder Deputy _
Index to ORDINANCE
215-08-17
ORDINANCE NO.
AN ORDINANCE OF THE CITY OF IONA, IDAHO;
AMENDING SECTIONS 8-2-2, 8-2-14, 8-2-15 AND 8-2-16
AND ADOPTION OF SECTION 8-2-16A OF THE IONA CITY
CODE RELATIVE TO WATER SYSTEM CONNECTION
FEES; ADOPTING AN "EQUITY BUY -IN" METHOD OF
CALCULATING WATER SYSTEM CONNECTION FEES;
PRESERVING PRIOR ORDINANCE; PROVIDING FOR
METHODOLOGY; PROVIDING FOR SEVERABILITY AND
ESTABLISHING AN EFFECTIVE DATE.
BE IT ORDAINED BY THE MAYOR AND CITY COUNCIL OF THE CITY OF IONA,
IDAHO THAT:
Section 1. Amendment of Section 8-2-2 of the Iona City Code: Section 8-2-2
of the Iona City Code is amended as follows:
8-2-2: DEFINITIONS: Certain terms used in this Chapter shall have the meanings
ascribed below:
APARTMENT:
BACKFLOW:
BACKFLOW
PREVENTION DEVICE:
CALCULATED GROSS
SYSTEM VALUE:
CCI-ENR:
CITY:
CONNECTION FEE
CALCULATION DATE:
A structure in which two or more separate residential units
are constructed and designed so the occupants share
common dining or restroom facilities and for which the
occupants pay rent or other consideration.
The flow other than in the intended direction of flow, of any
non -potable waters, foreign liquids, gases or harmful or
offensive substances into the City water supply as a result
of reduced or reversed pressure.
A device which, when properly installed between the City
water supply system and the terminus of the customer's
water line or point of ultimate use, will prevent Backflow.
The Gross System Value calculated by the City on any
Connection Fee Calculation Date in accordance with the
methodology set forth in section 8-2-14 of this Code.
The Construction Cost Index as published from time to
time by the Engineering News -Record for U. S. Cities.
(See http://www.enr.com)
The City of Iona, Idaho.
The date of any calculation of the Water System Connection
Fee undertaken pursuant to section 8-2-14 of this Code.
CROSS -CONNECTION:
CURB STOP:
CUSTOMER LINE:
EQUIVALENT
DOMESTIC USER:
EQUITY BUY -IN
METHODOLOGY
EXISTING CUSTOMER:
GROSS SYSTEM
VALUE:
INITIAL GROSS
SYSTEM VALUE:
NET COST:
Any physical arrangement whereby the City water system is
connected with any other water supply system, sewer, drain,
conduit, pool, storage reservoir or any other source of water
supply which contains or may contain contaminated water,
sewage or other waste or liquids which may be harmful to
human health or which may deleteriously affect the City
water supply.
The service line valve owned by the City and located near
the customer's property line.
The pipe, valves and fittings leading from the curb stop into
the premises served, including the water box assembly and
water meter (if any) attached thereto.
A hypothetical customer whose needs for water service can
be reasonably and prudently served by a standard one (1.0")
diameter residential water service line.
The methodology for calculating Water Service
Connection Fees as set forth in this chapter.
Any customer of the City whose water service line was
connected to the City water system prior to the effective
date of the Ordinance adopting the Equity Buy -in
Methodology for calculating Water System Connection
Fees.
The total Net Cost to replace all System Assets including all
design, engineering and construction costs associated
therewith, together with all System Cash Revenues held in
the City Water System Capital Improvement Fund, all as
determined according to generally accepted engineering and
accounting practices.
The Gross System Value for the end of the year 2016 as
determined by Schiess & Associates, PC, Engineering
Company as set forth in that certain Engineering Report
dated July 24, 2017, a copy which shall be filed with the City
Clerk immediately following the publication of the Ordinance
adopting this chapter and which shall be there maintained
for inspection by the public.
An amount equal to the cost of any System Improvement
less any portion of such amount paid by a state or federal
grant or with in -kind donations or grants in aid of
development by a private person or entity. Such amount
shall include amounts expended for the design, construction
or construction management services necessary to install or
otherwise put such improvements into an operable condition.
NET SYSTEM VALUE:
NEW CUSTOMER:
OPEN HOSE:
OUTSTANDING
SYSTEM
INDEBTEDNESS:
SERVICE LINE:
SINGLE FAMILY
DWELLING:
SYSTEM ASSETS:
SYSTEM CAPACITY:
SYSTEM CASH
RESERVES:
The Gross System Value at the time of any Connection Fee
Calculation Date minus any Outstanding System
Indebtedness, Unfunded Depreciation and state or federal
grants, all determined as of the most recent Connection Fee
Calculation Date.
Any customer who connects his or her water service to a
City -owned water main line after the effective date of the
Ordinance adopting the Equity Buy -in Methodology.
The use of water through a hose without a nozzle or other
pressure limiting device.
The aggregate unpaid principle balance of any indebtedness
attributable to any bond or loan secured, obtained or issued
by the City for the purpose of constructing System Assets,
or for the purpose of enlarging, expanding or rehabilitating
such improvements as such indebtedness exists at the time
of any Connection Fee Calculation Date.
The water pipe, valves and fittings laid from publicly owned
main line to the water meter box (if present), or the curb
stop, in the absence of a water meter box.
All structures, except hotels, motels, rooming houses
rooming houses and apartments, which contain sleeping,
restroom, cooking and dining facilities.
All main lines, distribution lines, pumps, water tanks,
motor vehicles, back hoes, equipment, inventory, supplies,
water rights and permits and real or personal property of
every kind or nature constructed or purchased at City
expense and used for the purpose of providing culinary
water service to the residents of the City or for the
purpose of providing for the operation and maintenance of
such property.
The total number of Equivalent Domestic Users which may
be reasonably and prudently served by the Water System at
the time of a Connection Fee Calculation Date, as calculated
and determined in accordance with sound and generally
accepted engineering principles.
All cash revenues and reserves held or controlled by the
City in the City Water System Capital Improvement Fund.
SYSTEM Any improvement, expansion, increase in capacity or
ENHANCEMENTS: enhancement of any System Asset installed, purchased or
otherwise acquired solely for the use of the Water System
after the date of the Engineers Report by Schiess &
Associates, PC, Engineering Company filed with the City
Clerk, pursuant to this Chapter.
UNFUNDED An amount of depreciation for depreciable System Assets,
DEPRECIATION: calculated in accordance with generally accepted accounting
principles determined as of any Connection Fee Calculation
Date for which no reserve has been set aside or otherwise
maintained in the Water Line Capital Improvement Fund for
the purpose of repairing, replacing or rehabilitating existing
System Assets.
WATER MAIN: Water pipe laid in a street, road, alley or easement within the
City or within an easement controlled by the City or pursuant
to a permit or license issued to the City.
WATER METER: A water meter and its enclosure, valve and related
appurtenances.
WATER SYSTEM: The Water System owned and operated by the City.
WATER SYSTEM Any bonded indebtedness issued for the purpose of
BOND: constructing, enlarging, rehabilitating or expanding the
capacity of the Water System.
WATER SYSTEM Any loan, the proceeds of which were used to construct,
LOAN: enlarge or increase Water System capacity or to rehabilitate
any portion of the Water System.
Section 2. Repeal of Section 8-2-14 of the lona City Code: Section 8-2-14 of
the lona City Code is hereby repealed.
Section 3. Adoption of New Section 8-2-14 of the lona City Code: A new
Section 8-2-14 entitled "Water System Connection Fees" is hereby adopted as follows:
8-2-14: WATER SYSTEM CONNECTION FEES:
(A) Findings.
(1) The City owns and operates a municipal Water System comprised of main
lines, distribution lines, pumps, water tanks, water pumps, back hoes,
maintenance equipment, water rights and permits and other real or personal
property of any kind together with other appurtenances, all as necessary to
provide a sanitary, efficient and satisfactory water supply system to the
residents of the City. The City has also established a Water Line Capital
Improvement Fund into which revenues derived from the operation of the
System are deposited and from which all enterprise expenses are paid. A
portion of the fund balance in such Fund is comprised of System Cash
Reserves and a depreciation account sufficient to maintain the financial
integrity of the System. All of the assets of the Water System were acquired
with System Revenues, ad valorem tax revenues, state and federal grants
and private "in lieu" grants or donations.
(2) Whenever a New Customer of the Water System connects to the Water
System, he or she receives the benefit of the value of all Water System
Assets ("Net System Value"). The Net System Value is not considered in
establishing the monthly water service rates charged to water customers
pursuant to Section 8-2-36 of this Chapter, except to the extent necessary
to pay debt service for indebtedness incurred to construct System
Enhancements.
(3)
The Water System has the capacity to serve a finite number of customers in
terms of cumulative capacity as well as peak demand, which capacity is a
function of the limits set forth in the City's water rights permits, as well as the
mechanical capacity of the City to maintain satisfactory flow and pressure,
as necessary to provide for the health, safety and welfare of the City
residents. Whenever a New Customer connects to the System or whenever
an Existing Customer enlarges his or her water service line, such connection
or enlargement diminishes the total capacity of the System to maintain
adequate pressure and water supply.
(4) The establishment of a System Water Connection Fee will provide a means
for a "buy -in" of system equity by New Customers who connect to the Water
System or by Existing Customers who enlarge their existing water service
connections.
(5)
In Loomis v. City of Hailey, 119 Idaho 434, 807 P.2d 1272 (1991), the Idaho
Supreme Court recognized that the Idaho Revenue Bond Act (the "Act")
(Idaho Code § 50-1027 et seq) authorizes collection of water and sewer
connection fees as long as such fees are allocated and budgeted in
conformity with the Act and are not established primarily for the purpose of
raising revenue. Specifically, the Court recognized that a city ordinance
authorizing the collection of "equity buy -in" water and sewer service
connection fees from new users based upon a formula which defines the
current value of the system and fairly apportions a share of such value to the
new user, was reasonable and did not require a new user to pay an
excessive amount such as would constitute an unlawful tax.
(6) Customers who connect to a City -owned water main located immediately
adjacent to their property receive a direct benefit from such Water Mains and
such benefit is directly proportional to the length of the frontage of the Water
Main along their property. Whenever such water mains are constructed at
private expense or are donated to the City, the City may enter into
reimbursement agreements with such private donors in order to allow such
donors to recover a proportionate share of the costs of construction of such
water mains, proportional to the length of frontage owned by such
subsequent customer along such water mains. However, the costs of such
privately funded water mains is not included in the methodology used to
calculate the Water System Connection Fee contemplated by this chapter.
(B) Imposition of Water System Connection Fee. No New Customer of the City Water
System shall connect to a City -owned Water Main or Meter nor shall an Existing
Customer enlarge an existing water service line connected to a City -owned Water
Main or Meter, unless he or she has first paid a Water System Connection Fee as
established pursuant to this section. Such connection fee shall be collected by the
City Clerk at the time a building permit is issued for any structure utilizing such
connection or, if no building permit is required, then prior to the issuance of a permit
under section 8-2-22 of this chapter. The amount of such Water Service Connection
Fee shall be calculated in accordance with the methodology set forth in this chapter.
Notwithstanding the foregoing, no Water System Connection Fee shall be required
if the connection is made or required solely for the purpose of providing fire flow
protection capacity.
(C) Methodology. The amount of the Water Service Connection Fee shall be calculated
by dividing the Net System Value by the System Capacity (as expressed in EDUs)
as calculated at the time of any Connection Fee Calculation Date and the resulting
amount shall be the base water service connection fee for all customers who
thereafter connect to the City water system for the first time after the date of the
initial Connection Fee Calculation Date. If an Existing Customer requests a service
line greater than one inch in diameter, then the base amount of the Water Service
Connection Fee shall be adjusted by the multiplication factors set forth in subsection
(D) of this Section. In the event an Existing Customer desires to enlarge or expand
the size of his or her existing service connection, then the amount of the connection
fee shall be equal to the base water connection fee, as adjusted by the
multiplication factors set forth in such table, less the base water connection fee so
calculated with respect to the customer's existing water service line or a one inch
service line, whichever is greater. Once the amount of the Water Service
Connection Fee has been determined by using such methodology, the City shall
adopt a Resolution setting forth the amount of such base Water Service Connection
Fee to be charged until a new connection fee is calculated on the next Connection
Fee Calculation Date.
(D) Multiplication Factors. The Water Service Connection Fee for each customer shall
be equal to the Water Service Connection Fee then in effect, adjusted by the
multiplication factors stated in the following table, dependent upon the diameter of
the customer's desired water service line. Such multiplication factors are as follows:
Water Service Size
Multiplication Factor
1"
1.0
1
1/2"
2.0
2"
3.2
(E) In the event a customer requests a water service line greater than two (2) inches in
diameter, then the multiplication factor shall be determined by the water
superintendent in a fair and equitable manner, consistent with the principles set
forth in this chapter and proportional to the amount of System Capacity reasonably
estimated to be consumed by such customer.
(F) Periodic Adjustment of Water Connection Fee. Not less than once every five years,
the City shall review and adjust the base water service connection fee as provided
in this subsection. Such adjustment shall be made by multiplying the Initial Gross
System Value by a fraction, the numerator of which is the CCI-ENR for the year
such adjustment is made and the denominator of which shall be the CCI-ENR for
the year in which the Ordinance adopting this Chapter was passed. The Net Cost
of any System Assets (after adjustment by the CCI-ENR index) made since the last
Connection Fee Calculation Date shall then be added to such adjusted Gross
System Value and the resulting amount shall be considered as the Calculated
Gross System Value for the following five year period. The Net System Value shall
then be determined by the deducting from such Calculated Gross System Value any
and all Outstanding System Indebtedness, Unfunded Depreciation and state or
federal grants, as may exist as of the Connection Fee Calculation Date. The
amount of the base water connection fee shall then be determined in accordance
with the methodology set forth in subsection (C) hereof.
Section 4. Amendment of Section 8-2-15 of the lona City Code: Section 8-2-
15 of the lona City Code is repealed and re -adopted as follows:
8-2-15: WATER SYSTEM CAPITAL IMPROVEMENT FUND: A Water System
Capital Improvement Fund is hereby established into which all revenues derived from
Water System Connection Fees collected pursuant to section 8-2-14 of this Chapter shall
be deposited. Expenditures from this Fund shall be made only for the purposes set forth
in Section 8-2-16 of this Chapter, when authorized by the City Council. In no event shall
any of the revenues so collected be used for General Fund purposes, operational
expenses of the Water System (e.g. utility costs, labor costs or administrative expense) or
for any purpose unrelated to the maintenance of the Water System or the development,
expansion or rehabilitation thereof.
Section 5. Amendment of Section 8-2-16 of the lona City Code: Section 8-2-16
of the lona City Code is amended as follows:
8-2-16: DISBURSEMENTS OF FUNDS: Disbursements may be made from the
Water System Capital Improvement Fund for the following purposes only:
(A) Construction and installation of City water wells, water tanks, pumps, electrical
panels and lines and appurtenances.
(B) Construction, installation and extension of City water mains, service lines, including
costs of construction of mains with excess capacity.
(C) Payment of principal and interest on any revenue bond or bonds issued by the City
to defray the cost of construction, extension or betterment of the City Water System.
(D) Reimbursement of front footage connection fees to any developer or owner who has
constructed that portion of a water main for which a front footage connection fee
has been charged by the City, provided a reimbursement agreement has been
approved by the Council and executed by the developer or owner.
(E) Repair, maintenance, rehabilitation and enlargement of any capital improvement of
the City Water System.
(F) Purchase of motor vehicles, backhoes and other mechanical equipment used
primarily for the maintenance, repair, enlargement or improvement of the Water
System or System Assets.
Section 6. Adoption of Section 8-2-16A of the lona City Code: Section 8-2-
16A of the lona City Code is adopted as follows:
8-2-16A: FRONT FOOTAGE CONNECTION FEES: Before connecting to any portion
of a public water main constructed at the sole expense of a private person or entity, any
person desiring such connection shall pay, in addition to the Water System Connection
Fee, a Front Footage Connection Fee of thirty dollars ($30) per front foot of property to be
served by such water main. Notwithstanding the foregoing, no front footage connection
fee shall be charged to the private person who constructed such portion of the water main.
If any person constructs a water main entirely at his or her expense and dedicates it to the
City, the City may, by written agreement, pay over to such person all front footage
connection fees collected by the City with respect to such water main from any other
person who subsequently connects to such water main. In no event shall such agreement
extend over a period of greater than ten (10) years nor shall such agreement be assignable
to any other party or successor in interest.
Section 7. Methodology. Text that is underlined in the preceding sections
means new text added to the former Ordinance or City Code Section, and text that is
stricken through means text that is being deleted from the former Ordinance or Code
Section. Text that is moved from one location in the former Ordinance or Code Section to
another location is similarly shown as underlined text.
Section 8. Severability. The sections and subsections of this Ordinance are
severable. The invalidity of any section or subsection shall not affect the validity of the
remaining sections or subsections.
Section 9. Preservation of Prior Ordinance. The sections of the City Code
repealed or amended by this Ordinance shall be preserved to the extent necessary to allow
the arrest, prosecution and punishment of any person who violates such provisions prior
to the effective date hereof.
Section 10. Effective Date. This Ordinance shall become effective upon its
passage, execution and publication in the manner provided by law.
PASSED BY THE COUNCIL AND APPROVED BY THE MAYOR this day of
August, 2017.
Brad Andersen
Mayor
ATTEST:
.City Clerk
t
•
p (rrT.
STATE OF IDAHO
)ss.
County of Bonneville
I, SHARA ROBERTS, CITY CLERK OF THE CITY OF IONA, IDAHO, DO HEREBY
CERTIFY:
That the above and foregoing is a full, true and correct copy of the Ordinance
entitled, "AN ORDINANCE OF THE CITY OF IONA, IDAHO; AMENDING SECTIONS 8-2-
2, 8-2-14, 8-2-15 AND 8-2-16 AND ADOPTION OF SECTION 8-2-16A OF THE IONA
CITY CODE RELATIVE TO WATER SYSTEM CONNECTION FEES; ADOPTING AN
"EQUITY BUY -IN" METHOD OF CALCULATING WATER SYSTEM CONNECTION FEES;
PRESERVING PRIOR ORDINANCE; PROVIDING FOR METHODOLOGY; PROVIDING
FOR SEVERABILITY AND ESTABLISHING AN EFFECTIVE DATE."
Shara Roberts
City Clerk
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