HomeMy WebLinkAboutO-2905 - Amends Sec. 14.07.010, capital improvement charges (14.07)CITY OF MARYSVILLE
Marysville, Washington
ORDINANCE NO.~
AN ORDINANCE OF THE CITY OF MARYSVILLE, WASHINGTON,
RELATING TO SEWER AND WATER CONNECTION CHARGES FOR
COMMERCIAL, INDUSTRIAL AND MULTI-FAMILY RESIDENTIAL
DEVELOPMENTS; AND AMENDING SECTION 14.07.010 OF MMC
CHAPTER 14.07 FEES, CHARGES AND REIMBURSEMENTS TO
PROVIDE AN OPTION FOR DEFERRING PAYMENT OF SEWER AND
WATER CONNECTION CHARGES FOR COMMERCIAL, INDUSTRIAL
AND RESIDENTIAL DEVELOPMENT, AND SETTING A SEWER AND
WATER CONNECTION CHARGE FOR MULTI-FAMILY
RESIDENTIAL DEVELOPMENT.
WHEREAS, in 2006, the City of Marysville economy, together with the State and national
economies started to experience a severe economic downturn that remains today; and
WHEREAS, financing for construction projects has become harder to obtain as a result of
the economic downturn; and
WHEREAS, the economic downturn has had an adverse effect on the housing, commercial
and industrial markets; and
WHEREAS, reducing the amount of money needed for a construction loan will make
construction loans more attainable; and
WHEREAS, the depressed real estate market has resulted in decreased revenues,
abandonment of construction projects, and underutilized land in Snohomish County; and
WHEREAS, no new larger scale multifamily housing projects have been started in the City
within the last decade; and
WHEREAS, it may take several months to years to achieve full occupancy of all units withi.n
a larger scale multifamily housing project or full lease on commercial/industrial space; and
WHEREAS, the City wishes to allow deferral of connection charges to commercial,
industrial, and multifamily projects; and
WHEREAS, the Marysville Planning Commission held a public workshops on July 26, 2011,
and January 10. 2012, on proposed changes to MMC 14.07.010 that would allow the deferral of
connection charges to allow developers of commercial and industrial buildings and multifamily
residential to defer payment of such fees to either occupancy or 18 months from the date of
occupancy of the building if the property owner elects to retain ownership and not sell the property;
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WHEREAS, the Marysville Planning Commission held a public workshops on March 13,
2012, on proposed changes to MMC 14.07.010 that would reduce water and sewer connection
charges for multifamily residential development for a limited time period; and
WHEREAS, the Marysville Planning Commission held a public hearing on September 13,
2011, April 24, 2012 and May 8, 2012 to consider the draft ordinance and amendment of MMC
14.07.010; and
WHEREAS, the City Council was briefed by City staff on July 2,2012 and deliberated in an
open public meeting on July 9, 2012 to consider the Planning Commission's recommendations and
the proposed ordinance; and
WHEREAS, the Marysville City Council considered the entire hearing record including the
written and oral testimony submitted during the Planning Commission's hearings, the Planning
Comtnlssion's reconunendation, and the written and oral testimony submitted during the council
hearings; and
WHEREAS, after such consideration, the Marysville City Council wishes to amend MMC
14.07.010 to allow for the deferment of the payment of water and sewer connection charges
associated with commercial and industrial buildings and multifamily residential to either occupancy
or 18 months from the date of occupancy of the building if the property owner elects to retain
ownership and not sell the property; and
WHEREAS, the Marysville City Council also desires to amend IVlMC 14.07.010 to lower the
water and sewer connection charges for multifamily residential development; and
WHEREAS, the Maxysville City Council desires that this deferred payment program for
water and sewer connection charges and the reduction in water and sewer connection charges for
multifamily residential development be effective for a three-year period and sunset after that.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF MARYSVILLE,
WASHINGTON, DO ORDAIN AS FOLLOWS:
Section 1. Section 14.07.010 ofMMC Chapter 14.07 Fees, Charges and Reimbursements is amended
to read as follows:
14.07.010 Capital improvement charges.
(1) Capital improvement charges shall be assessed on all new connections to the
water and sewer system. Capital improvement charges shall also be assessed for a
remodel or expansion of an existing building or use. For purposes of this section, an
"existing building or use" shall mean all conunercial or industrial buildings or uses,
churches, schools or similar uses, and all residential buildings or uses where a
remodel or expansion increases the number of dwelling units. The capital
improvement charge constitutes an equity payment by new and existing customers
for a portion of the previously existing capital assets of the system. Capital
improvement charges also constitute a contribution to a long-term capital
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improvement program for the utility system which includes acquisition of new or
larger water sources, construction of water storage and transmission facilities, and
construction of sewer trunk lines and sewage treatment facilities. Capital
improvement charges shall be paid in full before a new connection or expansion or
remodel to an existing building or use shall be approved. All payments shall be
deposited in the utility constlUction fund and shall be made prior to building permit
issuance for residential construction and prior to issuance of a certificate of fmal
occupancy for commercial/industrial construction.
(2) Deferral of Connection Charges Allowed.
(a) Payment of required connection charges may be deferred to final inspection
for single family residential dwelling or multifamily projects with 25 or fewer
units.
(b) Payment of required connection charges for a commercial building, industrial
building. or a multifamily development exceeding twenty five (25) units may be
deferred from the time of building permit issuance in accordance with the
following;
(i). Fifty percent (50%) of the connectlon charges shall be paid pnor to
approved occupancy of the structure; and
(ll) The remaining fifty percent (50%) of the connection charges shall be paid
within eighteen (18) months from the date of building occupancy, or when
ownership of the property is transferred, whichever is earlier.
(c) The public works department shall allow an applicant to defer payment of the
connection charges when, prior to submission of building permit application for
subsection (a) or prior to final inspection for subsection (b), the applicant:
0) Submits a signed and notarized deferred connection charge application
together with a two hundred dollar ($200.00) processing fee and
acknowledgement form for the development for which the property owner
wishes to defer payment of the charges; and
(ll) With regard to payment deferment under subsection (b), records a lien for
connection charges against the property in favor of the city in the total
amount of all deferred connection charges for the development. The lien for
connection charges shall:
(1) Be in a form approved by the city attorney; and
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(2) Include the legal description, tax account number and address of the
property.
(d) Upon receipt of [rnal payment of all deferred charges for the development
the director of the public works department shall execute a separate lien release
for the property in a form approved by the city attorney. The property owner, at
their expense, will be responsible for recording each lien release.
(e) In the event that the connection charges ate not paid in accordance
subsection (b), the city shall institute foreclosure proceedings in accordance with
state law and as provided herein. In addition to any unpaid collection charges,
the city shall be entitled to interest on the unpaid impact fees at the rate provided
for in RCW 19.52.020 or as otherwise allowed by law and the reasonable attorney
fees and costs incurred by the city in the foreclosure process. Notwithstanding
the foregoing, prior to commencement of foreclosure, the City shall give not less
than thirty (30) days written notice to the person or entity whose name appears
on the assessment rolls of the county assessor as owner of the property via
certified mail with return receipt requested and regular mail advising of its intent
to commence foreclosure proceedings. If the connection charges are paid in full
to the city within the thirty (30) day notice period, no attorney fees, costs and
interest will be owed.
(f) In the event that the deferred connection charges are not paid in accordance
with this section. and in addition to foreclosure proceedings provided in
subsection (e), the city may initiate any other action(s) legally available to collect
such connection charges.
(g) Compliance with the requirements of the deferral option shall constltute
compliance with the conditions pertaining to the timing of payment of the
connection charges.
(h) The deferred payment options set forth in this section shall automatically
terminate three (3) years from the effective date of this ordinance without further
action of the City Council.
(.1~) The following capital improvement charges are established:
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Residential Units
Connection Charges
Type of Connection City Water Outside
Water
City
Sewer
Outside
Sewer
Residential
Effective Date
1/1/2005
1/1/2006
$3,675
$4,750
$4,305
$5,490
$3,120
$4,490
$3,495
$4,890
Multifamily Residential*
Effective Date 8/1/2012 through
8/1/2015 $3,000 $5,490 $3,000 $4,890
*Residentialliving units including multi-unit housing, mobile homes and motels.
*The connection charges for multifamily residential development shall be in effect
for a three (3) year period from August 1. 2012 through August 1. 2015. Thereafter,
the connection charges for multi-family residential development shall be the same as
the connection charges for residential development.
Commercial/Industrial
Connection Charges
Water
City Outside City
Effective Date 1/1/2005
0-2,000 gpm $1.64/sf
2,001 -4,000 gpm $2.40/sf
4,001 + gpm $3.16/sf
Effective Date 1/1/2005
0-2,000 gpm $1.99/sf
2,001 -4,000 gpm $2.87/sf
4,001 + gpm $3.80/sf
25% rate reduction for automatic sprinkler system.
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Sewer
City Outside City
Effective Date 1/1/2005
Retail Sales/Manufacturing/
Churches/Schools/Day Care
$1.03/sf
Offices/Medical/Dental/Nursing
Homes and all other uses not listed
$1.67/sf
Warehouses/Storage $0.49/sf
Restaurants/Taverns $2.38/sf
Effective Date 1/1/2005
Retail Sales/Manufacturing/
Churches/Schools/Day Care
$1.24/sf
Offices/Medical/Dental/Nursing
Homes and all other uses not listed
$2.00/sf
Warehouses/Storage $0.65/sf
Restaurants/Taverns $2.86/sf
25% rate reduction for schools wlthout kitchens.
Water Service Installation Fee
Effective
Date 11/1/2006
5/8" x 3/4" $1,050
3/4" x 3/4" $1,075
1" $1,200
1-1/2" $1,600
2" Time and materials costs/
minimum of $1,900
Drop-in Meter Fee
Effective
Date 11/1/2006
5/8" x 3/4" $500.00
3/4" x 3/4" $525.00
1" $560.00
1-1/2" $750.00
2" $850.00
3" and over Charge time and material/
$3,500 minimum
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Hotel/Motel Connection Charges
City Water Outside Water City Sewer Outside Sewer
Effective
Date
1/1/2005 $1,405 $1,646 $1,193 $1,336
1/1/2006 $1,816 $2,099 $1,717 $1,870
(~) "Floor space" is defined as the net square footage measured from the interior
walls, including interior partitions.
(~4) The capital improvement charges for sewer connections shall be reduced by
$50.00 per unit or $0.045 per square foot when the affected property participated in
a utility local improvement for the construction of the sewer main.
(2-3) Capital improvement charges for sewer connections to commercial and
industrial units shall be reduced by 50 percent for any floor space in the premises
which is committed to being used as warehouse space for storage purposes only.
(16) If the use of any premises connected to city utilities is converted from a
residential occupancy to a commercial or industrial occupancy (as defIned in
subsection (2) of this section), or from a warehouse use to an active commercial or
industrial use, the owner of the premises shall immediately report such conversion to
the city and shall pay the extra capital improvement charge which is then required for
such an occupancy. Failure to report such a conversion, and pay the extra charge,
within 90 days of the new occupancy shall result in the extra charge being doubled as
a penalty.
(1Y) The capital improvement charge for utility connections in recreational vehicle
parks shall be calculated as follows:
(a) For each connection to a recreational vehicle pad, the charge shall be 50
percent of the charge provided in subsection (2) of this section relating to
residential living units.
(b) For every other connection in a recreational vehicle park, the charge shall be
the same as provided in subsection (2) of this section for residential living units.
(2.8) If a building with a lawful water and/or sewer connection to the city utility
system is demolished and replaced with a new building requiring utility connections,
the capital improvement charges assessed for the new connections shall be
discounted by the amount which would have been paid, under current schedules, for
the connections which previously served the demolished building.
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Section 2. Severability. If any section, sentence, clause or phrase of this ordinance is held to be
invalid or unconstitutional by the Growth Management Hearings Board (Board) or 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. Provided,
however, that if any section, sentence, clause or phrase of this ordinance is held to be invalid by the
Board or a court of competent jurisdiction, then the section, sentence, clause or phrase in effect
prior to the effective date of this ordinance shall be in full force and effect for that individual
section, sentence, clause or phrase as if this ordinance had never been adopted.
Section 3. Effective Date. Tlus ordinance shall become effective five days after the date of its
publication by summary.
PASSED by the City Council and APPROVED by the Mayor this fday of h (.J ,2012.
CITY OF I'v1ARYSVILLE
ATTEST:
By
S.l\NB¥---hANBBeN CITY CLERK ~ ,LO'~CZ-~ ~P...J~
Approved as to form:
By f.)~<:.. t~
6RANTKWEED, CITY ATTORNEY
Date of Publication: TI..-tl~ 1'(, 20t~
Effective Date (5 days after publication): __."",j_vL_l_~'r--L_~-<,,-(=--u_\l__
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