Chapter 18.60
UTILITY SYSTEM DEVELOPMENT CHARGE
Sections:
18.60.030 Utility system development charges after July 15, 2004.
18.60.040 Utility system development charge for expansion of existing system.
18.60.070 Segregation and use of revenues.
18.60.010 Purpose.
The city council has determined that it is reasonable and in the public interest to enact and impose a utility system development charge for the purpose of recovering a fair share of the system costs from the development of sewer, water, and storm water (also known as storm drain) facilities. The city council finds that the public would benefit from a logical long-range approach to the financing of necessary central facilities, including the replacement of existing facilities that have been oversized to serve future growth as well as the construction of new facilities that will provide the additional capacity needed to serve growth. Experience has demonstrated that the lack of such provision casts an unfair (and at times, unexpected) burden on ratepayers in the form of debt financing costs, cash requirements for capital projects, assessments, and additional operating costs resulting from deferred maintenance. Operating from crisis to crisis is more expensive in the long run, increasing exposure to safety risks and liabilities such as property damage; and debt financing should be minimized wherever possible. The utility system development charges described in this chapter are designed and calculated to recover a fair share of system costs from the development of water, sewer, or storm water facilities. It serves as a critical element of a balanced capital funding strategy that avoids excessive reliance on debt financing, providing a source of cash funding for essential utility facilities as the needs arise. The city council hereby determines that it is appropriate to set utility system development charges up to a level adequate to recover a fair share of costs from development. (Ord. 1973 § 1, 2023; Ord. 1386 § 2, 2004; Ord. 1055 § 1, 1996; Ord. 816 § 2, 1988. Formerly 13.48.020).
18.60.020 Definitions.
As used in this chapter, unless the context otherwise requires:
(1) “Administrator” means the city engineer or such other person as is appointed by the mayor.
(2) “Utility system development charge” means a charge imposed on development as a condition of connecting to the Oak Harbor water, sewer, or storm water systems. A charge will not be made for a separate fire flow line. Since the storm water system includes various facilities that manage the volume and pollutant levels of storm water runoff across the city, all developing properties located within the city are subject to a storm water utility system development charge even if there is no direct connection to a storm water main.
(3) “Credit” means an equitable setoff against a system development charge which is a recognition of the developer’s in-kind improvements to the Oak Harbor water, sewer, or storm water systems which are of community-wide significance (such as, but not limited to, pump stations, reservoirs, or oversized lines) and which are identified in the corresponding utility capital facilities plan.
(4) “Extra capacity facilities” include, but are not limited to:
(a) For water, participation in pump stations, standby generators, reservoirs, and transmission lines in excess of eight inches in diameter needed to improve fire flow and pressure;
(b) For sewers, participation in lift stations, force mains, treatment facilities, large trunk lines in excess of eight inches in diameter needed to improve capacity or eliminate a storm and sanitary sewer cross-connection. (Ord. 1973 § 2, 2023; Ord. 1386 § 3, 2004; Ord. 816 § 1, 1988. Formerly 13.48.010).
18.60.030 Utility system development charges after July 15, 2004.
(1) A utility system development charge is imposed upon all property owners seeking to connect (or upsize an existing connection) to the Oak Harbor water, sewer, or storm water systems. Even in the absence of a physical connection to a storm water main, all development occurring on real property located within the boundary of the city (excluding property that has been exempted from storm water charges by OHMC 12.40.030) is subject to the storm water utility system development charge listed in the master fee schedule adopted by resolution of the city council.
(2) The water utility system development charge for new construction will be based on the required meter size for domestic service and not include any oversizing for the purpose of fire protection. For new single-family residential connections, the sewer utility system development charge will be based on the square footage of the single-family residential unit; accessory dwelling units of any size (greater than zero) will be charged a sewer utility system development charge based on the smallest size category. For all other new construction, the sewer utility system development charge will be based on the required meter size for domestic service and not include any oversizing for the purpose of fire protection. The storm water utility system development charge for new construction will be based on the amount of hard surface area on a parcel, with single-family residential parcels being assigned 3,300 square feet of hard surface area as outlined in OHMC 12.40.030(3). (Ord. 1973 § 3, 2023; Ord. 1696 § 80, 2014; Ord. 1386 § 4, 2004; Ord. 1055 § 2, 1996; Ord. 816 § 3, 1988. Formerly 13.48.030).
18.60.040 Utility system development charge for expansion of existing system.
Whenever the size of metered hookup is increased for a property served by sewer, water, or storm water the utility system development charge(s) payable for such increase will be the difference between the utility system development charge for the size meter to be installed and the utility system development charge for a meter equivalent to one that is already existing; provided, that when premises are served by water and not by sewer, the charge for sewer utility system development shall be the one set out in OHMC 18.60.030 if the sewer is to be connected. For all users other than a single-family residential parcel, whenever the amount of impervious area is increased, the storm water utility system development charge payable for such an increase will be determined by multiplying the storm water utility system development charge by the quotient of the square footage of the increased impervious area divided by 3,300 square feet, rounded to the nearest tenth.
No utility system development charges will be due if the sole purpose of upsizing the service is to accommodate a residential fire sprinkler system. (Ord. 1973 § 4, 2023; Ord. 1386 § 5, 2004; Ord. 816 § 4, 1988. Formerly 13.48.040).
18.60.050 Collection.
The utility system development charge is due and payable prior to obtaining a valid permit for connection to the sewer, water, or storm water system of the city. For new construction or building expansions, this will be at the time of building permit. (Ord. 1973 § 5, 2023; Ord. 1386 § 6, 2004; Ord. 816 § 5, 1988. Formerly 13.48.050).
18.60.060 Credits or waiver.
(1) Credit for or waiver of utility system development charges may be authorized by the city council for improvements made to the Oak Harbor sewer, water, or storm water system which meet the following criteria:
(a) The project is identified as a project in the Oak Harbor capital facilities plan;
(b) The use of credits or waiver for the project has been approved by the city council prior to construction;
(c) The project was completed to city standards; and
(d) The amount and apportionment formula has been approved by the city council. The city council retains full discretionary authority to authorize use of credits or a waiver and such exercise of authority is a legislative decision and is not subject to appeal.
(2) No credit or waiver shall be provided for line extensions of eight inches in size to sewer or water lines or for pump or pressure stations which are not identified in the capital facilities plan. Waivers or credits shall not be provided if reimbursement may be provided by use of latecomer agreements.
(3) The amount of credit or waiver shall in no event be more than an equitable proportional share of the total cost of the improvements. (Ord. 1973 § 6, 2023; Ord. 1386 § 7, 2004).
18.60.070 Segregation and use of revenues.
All funds derived from the utility system development charge are to be segregated by appropriate approved accounting practices from all other funds of the city. The utility system development charge revenue collected by each utility shall be used for no purpose other than paying for that utility’s capital projects and/or repaying related debt service. (Ord. 1973 § 7, 2023; Ord. 1386 § 8, 2004; Ord. 816 § 7, 1988. Formerly 13.48.070).
18.60.080 Appeals.
Any person who is aggrieved by the decision required or permitted to be made by the administrator under this chapter may appeal that decision filing a written request with the city clerk, describing with particularity that portion of the administrator’s decision from which the person appeals. The process is a Type I review process and appeals shall be as provided in this title. (Ord. 1386 § 9, 2004; Ord. 816 § 8, 1988. Formerly 13.48.080).
18.60.090 Scope.
The utility system development charge provided for in this section is separate from and in addition to any applicable tax, assessment charge or fee otherwise provided by law. (Ord. 1386 § 10, 2004; Ord. 816 § 9, 1988. Formerly 13.48.090).
18.60.100 Rule making.
Administrator is authorized to make rules and regulations consistent with this chapter. Such rules shall be filed with the city clerk and copies provided to councilmembers. (Ord. 1386 § 11, 2004).
18.60.110 Periodic review.
On a periodic basis, not to exceed every five years, the administrator shall provide to the mayor and city council an updated calculation of the utility system development charges and shall provide recommendations as to changes that should be made to utility system development charges to keep them current. (Ord. 1973 § 7, 2023; Ord. 1386 § 12, 2004; Ord. 1055 § 3, 1996. Formerly 13.48.035).