Chapter 13.08 WATER CONNECTION FEES

This chapter is enacted pursuant to the RCW 35.92.025, which authorizes the City as a municipal corporation to charge a connection fee to property owners seeking new connections to the water system in such amount as the Council may determine in order that said property owners shall bear their equitable share of the cost of such system. Such connection fees are not considered “impact fees” as authorized by RCW 82.02.050, which are intended to mitigate the impact of new development on the City’s capital facilities infrastructure. Connection fees are intended to assign to new development an equitable share of the costs to construct and maintain the existing City infrastructure, which is necessarily limited in capacity. (Ord. 1678 § 1, 2011)

13.08.020 Purpose.

The purpose of this chapter is to:

A. Enforce the policy of the City of Ferndale that for new construction and development all such development must utilize the public water system, unless such system is not available in the judgment of the Public Works Director.

B. Ensure that the connection fees assigned to new development represent an equitable share of the costs to construct and maintain the City’s infrastructure.

C. Establish policies and fees necessary to construct and maintain the City’s water system and access facilities that are necessarily limited in capacity. The total connection fee shall include a charge per equivalent residential unit (ERU) plus the cost of the applicable water meter that shall be purchased by the City plus the meter installation charge. Connection fees shall be according to such rate schedule as may be adopted by ordinance of the City Council from time to time.

D. Provide applicants for residential building permits with the choice to pay 50 percent of connection fees at building permit issuance and 50 percent at request for final inspection of a residential structure. (Ord. 1678 § 1, 2011)

13.08.030 Definitions.*

The following are definitions provided for administering the City’s water connection fee program. The Public Works Director shall have the authority to resolve questions of interpretation or conflicts between definitions.

“Applicant” means any property owner, developer, or other person who seeks approvals from the City of Ferndale for land use approvals that would require a new water connection or a change in water usage from the City of Ferndale.

“Building permit” means the official document or certification that is issued by the Community Development Department and that authorizes the construction, alteration, enlargement, conversion, reconstruction, remodeling, rehabilitation, erection, tenant improvement, demolition, moving or repair of a building or structure or other construction permits in those instances where a building permit is not required.

“Capital facilities plan” means the capital facilities plan element of the City’s Comprehensive Plan adopted pursuant to Chapter 36.70A RCW, and such plan as amended.

“City Council” or “Council” means the City Council of the City of Ferndale.

“Connection fee” or “water connection fee” means a payment of money imposed upon development as a condition of connecting to the City’s water system.

“Deferred payment” means (A) the ability of the applicant to pay all water connection fees at the time of building permit issuance, and/or (B) for residential water connection fees, the deferral of up to 100 percent of all water connection fees until prior to final inspection. Deferred payment shall vest the water connection fees to the fees owing at the time of deferral, pursuant to FMC 14.07.090(G).

“Development activity” means any construction or expansion of a building, structure, or use, any change in use of a building or structure, or any changes in the use of land, that creates additional demand and need for public facilities.

“Director” means the Director of the Public Works Department, in consultation with the Director of Community Development, or their designees.

“Equivalent residential unit” or “ERU” means a development’s anticipated use of the City’s water system, based on that development’s equivalency to a single-family detached residential unit. A single-family detached residential unit is the most common form of development within the City, and the standard measurement from which all other uses can be compared. Also known as “single-family equivalency” or “SFE.”

“Finance Director” means the Finance Director of the City of Ferndale or his/her designee.

“Jurisdiction” means a municipality or county.

“Proportionate share” means that portion of the cost of system improvements that is reasonably related to the service demands and needs of new development.

“Schedule” means the list of adopted water connection fees for development activity that is subject to connection fees which is based upon a formula or other calculation method. The schedule of connection fees is defined in Attachment B to the ordinance codified in this chapter, which is herein incorporated by reference.

“Service area” means a geographic area defined by the City or interlocal agreement, in which a defined set of system improvements provide service to development within the area. Service districts shall be designated on the basis of sound planning or engineering principles. Development in a service area may, and will likely be found to, impact and be served by system improvements outside of the service area relating to overall system capacity and conveyance, and the resulting water connection fee will reflect a proportionate share charge based on those improvements.

“Water demand reduction” means improvements, programs, or services on-site or off-site which reduce the water demand relative to the normal assumptions contained in Appendix B**. (Ord. 2037 § 2 (Att. 2), 2018; Ord. 1916 § 3, 2015; Ord. 1678 § 1, 2011)

* Code reviser’s note: Ord. 1916 establishes a permanent impact fee deferment on option on residential construction consistent with RCW 82.02.050 and SB5923.

** Code reviser’s note: Appendix B is available at the City Hall and the City website for review.

13.08.040 Applicability.

A. The requirements of this chapter apply to all development activity in the City of Ferndale which requires a connection to the City’s water system.

1. New Connection. All new connection fees shall be based upon the equivalent residential unit (ERU) calculation for proposed uses. In such cases where a specific future use is not yet known, the City shall base connection fees on the warehouse equivalent described in Attachment B to the ordinance codified in this chapter.

2. Existing System Change Expansion. Structures and/or properties with existing water services shall be assessed the difference between the connection fees that would be paid based on the existing equivalent residential unit use and the proposed equivalent residential unit calculation. In such circumstances where subsection (A)(1) of this section would apply, the applicant for a proposed new use shall be required to pay the difference between the warehouse ERU and the proposed use.

3. One-Time Incentive for Conversion from Private Systems. Developments that convert from private (septic) systems to public sewer pursuant to FMC 13.20.040 that are not connected to the City water system shall pay a connection fee equivalent to 20 percent of the connection fee described in FMC 13.20.010, based on the fee schedule in place at the time of payment, subject to the following conditions/limitations:

a. Connection to the City water system must take place at the same time as connection to the City sewer system pursuant to FMC 13.20.040; development with existing connection to the City sewer system shall not be eligible for water connection fee discounts.

b. Impacts to water facilities located in jurisdictions outside the City, or development in other jurisdictions which impacts or connects to water facilities within the City, may be mitigated when there is an interlocal agreement between the City and the effective jurisdiction specifically addressing water connection identification and mitigation per FMC 13.08.220. When interlocal agreements have not been established, the City and other jurisdictions shall rely on the environmental review/SEPA process to evaluate and mitigate water impacts, as applicable, pursuant to FMC 13.08.230. Pursuant to FMC 13.36.040 and 13.38.070, the City will not extend water service beyond the municipal limits unless a health emergency has been declared by the Whatcom County Health Department, the property owner demonstrates a previous “will-serve” commitment from the City, or if such an extension is provided for a local, state or federal agency, or tribe. In all cases, the Ferndale City Council reserves the right to deny such an extension. (Ord. 1963 § 1, 2016; Ord. 1850 § 1, 2014; Ord. 1836 § 1, 2014; Ord. 1777 § 2, 2013; Ord. 1678 § 1, 2011)

13.08.050 Geographic scope.

The boundaries within which connection fees shall be charged and collected are co-extensive with the corporate City limits. The unincorporated urban growth area of the City of Ferndale as it existed upon the effective date of this chapter also will be included upon adoption of an interlocal agreement with Whatcom County, pursuant to restrictions contained in Chapter 13.12 FMC. (Ord. 1678 § 1, 2011)

13.08.060 Imposition of water connection fees.*

Any person who receives a building permit or other construction permit for any development activity or who undertakes any development activity within the City’s corporate limits for which a building permit is required, or other construction permit if a building permit is not required, shall pay the water connection fees as set forth in this chapter to the City, subject to the exemptions listed in FMC 13.08.120. The connection fees shall be paid at the time of building permit issuance, but in some cases may be deferred in all or part to the request for final inspection of the proposed use. The City shall not accept payment alternatives that would result in deferred payment(s) occurring following the initial occupancy of the use, and shall prohibit payments tied to monthly or bimonthly billing statements. (Ord. 2037 § 2 (Att. 2), 2018; Ord. 1916 § 3, 2015; Ord. 1678 § 1, 2011)

* Code reviser’s note: Ord. 1916 establishes a permanent impact fee deferment on option on residential construction consistent with RCW 82.02.050 and SB5923.

13.08.070 Conditions present for water connections.

Pursuant to FMC 13.04.025, where both water and sewer main lines are available within 200 feet of a property, connection to the water system shall not be allowed unless the property shall also utilize City sewer service. This requirement shall not apply to nonresidential, noncommercial, or nonindustrial uses where sewer service in any form is not required. (Ord. 1678 § 1, 2011)

13.08.080 Permit required for connections.

Pursuant to FMC 13.04.030, no plumber or other person will be allowed to make connection with the City mains, or make connection with any conduit, pipe or other fixture connecting therewith, or to connect pipes when they have been disconnected, or to turn on or off water to any premises without the permission of the Public Works Director. (Ord. 1678 § 1, 2011)

13.08.090 Application for water connection.

Pursuant to FMC 13.04.040, any person desiring to connect to the water supply system of the City shall make application at the Ferndale City Hall on the forms furnished for that purpose. Every such application shall be made by the owner of the property to be benefitted, or their authorized agent, and the applicant must agree to conform to the rules and regulations established from time to time as a condition for the use of water. At the time of filing such application, the applicant shall pay to the Treasurer the permit, installation and connection charges for water service as set forth by ordinance of the City. (Ord. 1678 § 1, 2011)

13.08.100 Residential equivalency.

A. For the purposes of computing the connection fee owing for each proposed development, connection fees shall be based on an equivalent residential unit (ERU) calculation, based on an average daily equivalency of 210 gallons per day (gpd), and represents the City’s estimated ERU calculation with conservation measures in place, as contained in the most recent Ferndale Water Plan. Connection fees shall be as per the connection fee schedule (Attachment B to the ordinance codified in this chapter). Where an ERU calculation is not available, the Public Works Director shall make his/her decision based on best available data provided by professional third parties for the same or similar use.

B. There shall be no prohibition against multiple buildings within a development paying a singular connection fee; provided, that any change of use within the development that generates a higher average daily equivalency shall require an additional connection fee. (Ord. 1678 § 1, 2011)

13.08.110 Service area.

For the purpose of this chapter, the entire City shall be considered one service area. The City may extend services outside of the incorporated City limits and into the unincorporated UGA in limited circumstances, pursuant to FMC 13.38.070. (Ord. 1678 § 1, 2011)

13.08.120 Exemptions.

The City has determined that the uses described below shall be exempt from water connection fees.

A. The water connection fees referenced in this chapter shall not apply to the following:

1. Alteration, expansion, enlargement, remodeling, rehabilitation, or conversion of an existing unit where no additional units are created and the use is not changed.

2. A change in use that results in no additional impact to the City’s water system.

3. The construction of accessory structures that will not create additional water impacts on system improvements.

4. The construction or approval of facilities for which no water connection is necessary. Temporary facilities such as portable toilets may not be placed in lieu of permanent water facilities.

5. Construction-related activities, during the construction period.

6. Special events, during the special event.

7. Development on lots for which the water connection fee has been paid in the past; provided, that the previous use had an identical or greater impact to the City’s water system than the proposed use. In those situations in which the previous use had an impact less than the proposed use, the applicant shall receive a credit against connection fees owing, equal to the current connection fee that would be owing for the previous use, less fees necessary for permit and inspection of the new connection.

B. The Director shall be authorized to determine whether a particular development for a proposed building permit, or certificate of occupancy if no building permit is required, falls within an exemption of this chapter. Determinations of the Director shall be subject to the appeals procedures set forth in FMC 14.11.070.

C. The Director shall be given the right of first refusal for supplying City water, in situations where other public or private systems are otherwise available. Connections to other public or private water systems shall only be allowed if the City cannot provide water, in the judgment of the Public Works Director. (Ord. 1678 § 1, 2011)

13.08.130 Assessment of water connection fees.

A. A water connection fee schedule setting forth the amount of the water connection fees to be paid by a development is set out in Attachment B to the ordinance codified in this chapter and incorporated herein by this reference.

B. The connection fee schedule, as set out in Attachment B to the ordinance codified in this chapter, shall be updated on or before May 1st of every odd year, at a rate adjusted in accordance with Seattle CPI to establish revised fee schedules for each subsequent year.

C. The connection fee amount is calculated by using the following formula:

Amount of water connection fee that shall be paid for that development use (based on equivalent residential unit)

Number of units of each use

Water connection fee per unit amount

1. The number of units of each use is determined as follows:

a. For residential uses it is the number of dwelling units for which a building permit application has been made; and

b. For office, retail, or manufacturing uses it is the gross floor area of building(s) to be used for each use expressed in square feet divided by 1,000 square feet, or in the units defined in the schedules.

2. Using the formula in this subsection (C), water connection fees shall be calculated separately for each use. The water connection fees that shall be paid are the sum of these calculations.

3. If a development activity will include more than one use in a building or site, then the water connection fee shall be determined using the above formula by apportioning the space committed to the various uses specified on the schedule in Attachment B to the ordinance codified in this chapter.

4. If the type of use or development activity is not specified on the water connection fee schedules in Attachment B to the ordinance codified in this chapter, the Director shall use the water connection fee applicable to the most comparable type of land use on the fee schedule.

D. The City has identified areas of the City for which residential connection fee reductions are provided, based on proximity to the City’s wastewater treatment plant. Such distance discounts shall apply in addition to the connection fees described in Attachment B to the ordinance codified in this chapter.

E. An applicant may provide improvements, programs, or service on-site or off-site which reduce anticipated water demand relative to the normal assumptions for the use of the City’s water system. Applicants that are able to demonstrate a reduced use may receive credits against water connection fees in an amount equivalent to the reductions demonstrated. Applicants requesting such consideration must provide the City with the following information and assurances, as part of the independent fee calculation described above:

1. Description of Demand Management Action. The developer must supply data, drawings, and manufacturing specifications (where applicable) needed to fully explain the concept and demonstrate its effectiveness in reducing the use of the City’s water system. Include supporting analyses as necessary by qualified professional experts acceptable to the City.

2. Assurance of Commitment. The developer must include in the development application a statement of what legal commitments the developer will make to assure the ongoing effectiveness of the proposed measures. Such commitments will later be included in the City’s conditions on development approval.

3. Examples of Demand Reduction Measures. The developer should consult with knowledgeable professionals to select demand management actions which will be effective for the proposed site, and to design the site plan with this objective in mind. Demand management actions may be appropriate in any of the following areas, depending on the site and the proposed land use:

a. Use of alternative technologies.

b. Site Operations. Provide services after construction to support and maintain demand reduction levels.

The City may supplement this list administratively.

4. In the case of a change in use, development activity, redevelopment, or expansion or modification of an existing use, the water connection fee shall be based upon the net positive increase in the connection fee for the new development activity as compared to the connection fee that would have applied to the previous development activity. The Director shall be guided in this determination by the sources and agencies listed above.

F. As described in this section, the connection fees set forth in the schedule included in Attachment B to the ordinance codified in this chapter shall be presumed valid and appropriate, unless revised pursuant to the following provisions:

1. An applicant may request a credit following the procedures set forth in FMC 13.08.150.

2. An applicant may submit an independent fee calculation following the procedures set forth in FMC 13.08.140. (Ord. 1678 § 1, 2011)

13.08.140 Independent fee calculations.

A. If, in the judgment of the Director, none of the land use categories set forth in the fee schedule in Attachment B to the ordinance codified in this chapter accurately describes the proposed land use, the applicant shall provide to the department for its review and evaluation an independent fee calculation, prepared by a qualified professional approved by the Director and paid for by the applicant. The independent fee calculation shall show the basis upon which it was made and shall include an estimate of the use of the City’s water system, based on the estimated peak gallons per day use of the City’s water system. The Director may accept this calculation and impose a connection fee based on this calculation, or it may obtain a second independent fee calculation and then decide which connection fee calculation is more appropriate. The second independent fee calculation will be paid for by the City, but administrative costs necessary to review the second independent fee calculation will be charged to the applicant on an hourly basis.

B. If an applicant requests not to have the connection fees determined according to the schedule in Attachment B to the ordinance codified in this chapter, then the applicant shall submit to the Director an independent fee calculation, prepared by a water engineer included in the City’s approved consultant list or approved by the Director and paid for by the applicant. The independent fee calculation shall show the basis upon which it was made and shall include an estimate of the use of the City’s water system, based on the estimated peak gallons per day use of the City’s water system. Independent fee calculations may be considered for all development, with the exception of single-family residential development or multifamily development of less than five units total.

C. When an independent fee calculation is sought under subsection (B) of this section, the City may issue a building permit or certificate of occupancy when no building permit is required for a change in use, prior to completion of the independent fee calculation; provided, that the connection fee must be collected based on the fee schedule in Attachment B to the ordinance codified in this chapter, at the time of payment as described by this chapter. If the Director ultimately approves the independent fee calculation, the City shall refund the portion of the fee that exceeds the approved independent fee calculation.

D. Any independent fee calculation proposed under this section shall be accompanied by a study that complies with the following standards:

1. The study shall follow accepted methods used to calculate the use of the City’s water system by the proposed development.

2. The study shall use acceptable data sources and the data shall be comparable with the uses and intensities proposed for the proposed development activity.

3. The study, including any data collection and analysis, shall be prepared and documented by a professional water engineer.

4. The study shall show the basis upon which the independent fee calculation was made.

E. The Director shall consider the independent fee calculation study and related documentation submitted by the applicant, but is not required to accept the calculation if the Director decides that the study is not accurate or reliable. If the Director finds the study to be unreliable, the Director may require the applicant to submit additional or different documentation for consideration. If the Director decides that third-party engineers are needed to review the calculation and related documentation, the applicant shall pay for the reasonable cost of a review by such engineers. If an acceptable independent fee calculation study is not presented, the applicant shall pay the water connection fees based upon the process and schedules referenced in this chapter. If an acceptable independent fee calculation study is presented, the Director may adjust the fee to an appropriate amount.

F. Determinations made by the Director pursuant to this section may be appealed to the Hearing Examiner subject to the procedures set forth in FMC 13.08.210. (Ord. 1678 § 1, 2011)

13.08.150 Credits.

A. An applicant may request a credit for the value of dedicated land, improvements, or construction if the land and/or the facility constructed are (1) required as a condition of development approval; and (2) included within the project list entitled “Water Connection Fee Project List,” which is attached to the ordinance codified in this chapter as Attachment A, and incorporated herein by reference as if set forth in full.

1. Credits may also be requested for the dedication to the City of land, improvements, or construction if not specifically included within the water connection fee project list, if, in the judgment of the Public Works Director, such dedications will improve the City’s compliance with the Comprehensive Plan and do not constitute a gift of public funds.

B. Each request for a credit or credits shall include a legal description of land donated, a detailed description of improvements or construction provided, and a legal description or other adequate description of the development to which the credit will be applied.

C. The credit shall not exceed the connection fee payable by the applicant.

D. For each request for a credit, the land value or costs of construction shall be determined as follows:

1. The amount of credit for land dedicated shall be the higher of either the value of the land established in the connection fee project list, if such value is identified, or by an appraisal conducted by an independent professional appraiser chosen by the fee payer from a list of at least three such appraisers provided by the City. The cost of the appraisal shall be borne by the fee payer. For purposes of this section, the date of value shall be the date the land was dedicated to the City. The appraisal shall only value the land dedicated and not any alleged damages to any abutting property.

2. The amount of credit for facilities constructed shall be based upon the actual cost of construction at the time of construction.

E. After the Director has determined the amount of the credit, the department shall include the determination with issuance of the building permit along with a statement setting forth the dollar amount of the credit, the basis for the credit, and where applicable, the description of the land dedicated and the date of the determination.

F. Any credit must be requested before payment of the connection fee and prior to issuance of the building permit or other construction permit. When development proposals would create additional lots, a credit request must be made prior to the legal establishment of lots. Any claim not so made shall be deemed waived. Credits may be utilized to address all or part of the first required payment of water connection fees made to the City, and credits may be provided up to the total cost of all water connection fees owing to the City.

G. No credit shall be given for project improvements.

H. Determinations made by the Director pursuant to this chapter shall be subject to the appeals procedures set forth in FMC 13.08.210. (Ord. 1678 § 1, 2011)

13.08.160 Project list.

A. The project list for the City’s water connection fee program is established in Attachment A to the ordinance codified in this chapter and is herein incorporated by reference.

B. Water connection fees shall be used for system improvements as well as ongoing maintenance and operation of existing facilities.

C. Water connection fees will generally be utilized to fund system improvements included in the project list (Attachment A to the ordinance codified in this chapter), but may also be utilized to fund ongoing maintenance and operations of existing facilities.

D. The Director shall periodically review the project list and costs for the water connection fee program and shall recommend updates, if any, as part of an amendment to this chapter. (Ord. 1678 § 1, 2011)

13.08.170 Time of payment of fees.*

A. All applicants shall pay a connection fee in accordance with the provisions of this chapter. With the exception of deferred fees made pursuant to FMC 14.07.090(G), the connection fee paid shall be based upon the schedule in effect at the time of payment. Any deferred payments shall be based upon the schedule in effect at the time of deferral, but in all cases payment must be made prior to the physical connection for service.

B. If the development is modified or conditioned in such a way as to alter the land uses or unit count for the development after payment is made, the connection fee will be recalculated accordingly, based on the provisions of this chapter. If the recalculated fee is greater than the previously paid fee, the City shall withhold or revoke the certificate of occupancy until the updated fee is paid. Deferred payments must include any unpaid fees resulting from such calculation. If the recalculated fee is less than the previously paid fee, then the City will refund the difference, unless the fees have already been spent or encumbered by the City. Except for subsection (D)(1) of this section, no refunds shall be made for unmodified developments that have a lesser impact than what was projected, although billing statements may reflect reduced fees.

C. If a connection fee is required, no building permit or certificate of occupancy shall be issued until the corresponding connection fee is paid.

D. Connection fees may be paid under protest in order to obtain a permit or other approval of development activity.

1. With the exception of residential development, an applicant may be eligible for a partial refund of connection fees if actual water use is at least 25 percent less than projected in Attachment B to the ordinance codified in this chapter. Applicants who are eligible for a refund may request the same from the Ferndale Treasurer within 90 days of receiving the equivalent of 12 months of billing. Applicants who are eligible for a refund but do not request one within this time frame shall receive no refunds.

2. If the actual water use is 25 percent or more above the projections in Attachment B to the ordinance codified in this chapter, the City will require an additional fee.

3. If full occupancy has not been achieved within the first 12 months of utility billings, the City may, at its sole discretion, calculate the full occupancy equivalent use based on the pro rata share of actual occupancies, and based on the 12 months of billing for those occupancies. (Ord. 2037 § 2 (Att. 2), 2018; Ord. 1916 § 3, 2015; Ord. 1678 § 1, 2011)

* Code reviser’s note: Ord. 1916 establishes a permanent impact fee deferment on option on residential construction consistent with RCW 82.02.050 and SB5923.

13.08.180 Connection fee account.

A. There is created and established a special purpose/non-lapse water connection fee fund. As necessary, the City shall establish separate accounts within such fund and maintain records for each such account whereby water connection fees collected can be segregated by service area in accordance with this chapter.

B. All interest shall be retained in the account and expended for the purposes for which the connection fees were imposed.

C. The City shall provide a report for the previous calendar year on the connection fee account showing the source and amount of moneys collected, earned or received and system improvements that were financed in whole or in part by connection fees.

D. The water connection fees paid to the City shall be held and disbursed as follows:

1. The water connection fees collected shall be placed in a deposit account within the connection fee fund;

2. When the Council appropriates capital improvement project (CIP) funds for a project on the project list, the fees held in the water connection fee fund shall be transferred to the CIP fund. Any non-connection fee moneys appropriated for the project may comprise both the public share of the project cost and an advancement of that portion of the private share that has not yet been collected in water connection fees;

3. The first money spent by the Finance Director on a project after a Council appropriation shall be deemed to be the fees from the connection fee fund;

4. Fees collected after a project has been fully funded by means of one or more Council appropriations shall constitute reimbursement to the City of the public moneys advanced for the private share of the project;

5. Projects shall be funded by a balance between water connection fees and public funds, and shall not be funded solely by water connection fees. (Ord. 1678 § 1, 2011)

13.08.190 Use of funds.

A. Water connection fees shall only be used for water system improvements identified in the capital facilities plan and on the project list as set forth in Attachment A to the ordinance codified in this chapter, or for general water system maintenance and operations, in the judgment of the Public Works Director.

B. Water connection fees referenced in this chapter may be spent for public improvements, including but not limited to planning, land acquisition, site improvements, necessary off-site improvements, construction, engineering, architectural, permitting, financing and administrative expenses, applicable connection fees or mitigation costs, capital equipment pertaining to planned facilities, and any other expenses which can be capitalized.

C. Water connection fees may also be used to recoup public improvement costs previously incurred by the City to the extent that new growth and development will be served by the previously constructed improvements or incurred costs.

D. In the event that bonds or similar debt instruments are or have been issued for the advanced provision of public improvements for which connection fees may be expended, connection fees may be used to pay the principal on such bonds or similar debt instruments to the extent that the facilities or improvements provided are consistent with the requirements of this section and are used to serve the new development. (Ord. 1678 § 1, 2011)

13.08.200 Refunds.

A. An applicant may request and shall receive a refund when the developer does not proceed with the development activity for which water connection fees were paid, and the applicant shows that no impact has or will result, and the City has not yet spent or encumbered the fees; however, the connection fee and administrative fee shall not be refunded if the City has spent or encumbered the fees.

B. In the event that water connection fees must be refunded for any reason, they shall be refunded with interest earned to the owners as they appear of record with the Whatcom County assessor at the time of refund. (Ord. 1678 § 1, 2011)

13.08.210 Appeals.

An applicant may appeal the amount of a connection fee determined by the Director as provided in Chapter 14.11 FMC, Decisions and Appeals. (Ord. 1678 § 1, 2011)

13.08.220 Authorization for interlocal agreements.

The City Council is authorized to execute, on behalf of the City, an interlocal agreement with other local governments for the collection, expenditure, and reporting of connection fees. (Ord. 1678 § 1, 2011)

13.08.230 Relationship to State Environmental Policy Act (SEPA).

A. All development shall be subject to environmental review pursuant to SEPA and other applicable City ordinances and regulations, unless specifically exempted.

B. Further mitigation in addition to the connection fee shall be required for identified adverse impacts appropriate for mitigation pursuant to SEPA that are not mitigated by a connection fee.

C. Nothing in this chapter shall be construed to limit the City’s authority to deny development permits when a proposal would result in significant adverse water impacts identified in an environmental impact statement and reasonable mitigation measures are insufficient to mitigate the identified impact. (Ord. 1678 § 1, 2011)

13.08.240 Additional connection fee in lieu of LID or ULID participation.

Where local water utility lines or facilities have been installed through the creation of a local improvement district or utility local improvement district and it is proposed to serve property not originally benefitted and not originally assessed a pro rata share of such improvements through such district, additional fees may be required. If applicable, such fees shall be calculated based on the following:

A. The extent to which the developer must expend funds to extend water lines to the subject property.

B. The cost assessed to other property owners pursuant to the LID or ULID.

C. The length of time that has elapsed since the installation of said original improvements.

The Public Works Director shall recommend, and the City Council shall establish, fees chargeable pursuant to this section.

The intent of this requirement is to ensure that the owners of properties benefiting in the future by the installation of utility improvements contribute, to the extent possible, a fair and equitable share of the pro rata cost of said improvements.

All fees collected pursuant to this section shall be placed in the capital facility fund of the water utility to be disbursed as budgeted by the City Council. (Ord. 1678 § 1, 2011)

13.08.250 Necessity of compliance.

A building permit, or other construction permit in those instances where a building permit is not required, issued after the effective date of the ordinance codified in this chapter shall be null and void if issued without substantial compliance with this chapter by the department, the approving authority and the Director. (Ord. 1678 § 1, 2011)