Loading...
Ordinance No. 2023-18 Water Surcharge Ordinance - Ferncliff (Approved 061323){JEH2818379.DOCX;1/13023.130005/ } 1 ORDINANCE NO. 2023 – 18 AN ORDINANCE of the City of Bainbridge Island, Washington, adding a new Section 13.16.045 to the Bainbridge Island Municipal Code establishing a water surcharge for properties in the Ferncliff area to pay for the Ferncliff Water Extension project. WHEREAS, the City of Bainbridge Island currently provides water service to certain customers in the Ferncliff area of the City through local water systems that were formerly operated by private water associations; and WHEREAS, the City’s water capital plan includes the Ferncliff Water Extension project to provide water service to the Ferncliff area by extending water mains in Ferncliff Avenue NE, NE Casey Street, Grand Avenue NE, and NE Fenton Road; and WHEREAS, the estimated cost of the Ferncliff Water Extension project is approximately $1.5 million, $800,000 of which will be financed through a Drinking Water State Revolving Fund loan that the City will be required to repay. Based on the water capital plan and the 2022 Utility Rate & System Participation Fee Update (Final Report April 2023), prepared for the City by FCS Group, City staff has recommended that approximately $550,000 (37%) of the total project cost should be allocated to general system benefit for the water utility and the remaining approximately $960,000 (63%) should be allocated to properties benefitted by and that can connect to the Ferncliff Water Extension; and WHEREAS, City staff has also recommended, and the City Council has agreed, that properties that will receive service from the Ferncliff Water Extension should pay their fair share of the total cost of the project through a water surcharge. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF BAINBRIDGE ISLAND, WASHINGTON, DOES ORDAIN AS FOLLOWS: Section 1. Ferncliff Water Extension Surcharge. A new Section 13.16.045 is hereby added to the Bainbridge Island Municipal Code to read as follows: 13.16.045 Ferncliff Water Extension. A. Owners of properties served by the Ferncliff Water Extension project identified in the city’s water capital plan shall pay a water surcharge as provided in this section. The surcharge shall be in an amount established by council resolution based on sixty-three percent (63%) of the actual final cost of the Ferncliff Water Extension, including but not limited to, design, engineering, construction, and financing costs. B. The boundaries of the geographic area to which this section applies are shown on the map attached to City of Bainbridge Island Ordinance No. 2023- {JEH2818379.DOCX;1/13023.130005/ } 2 18, which is codified in this section. The map is adopted as part of this code section as if fully set forth herein. C. Owners of properties formerly served by the Ferncliff Water Association, as shown on the map referred to in subsection B above, shall pay the following fees and charges: 1. A surcharge established by council resolution equal to the property’s fair share of the actual final cost of the Ferncliff Water Extension Project. The property owner may elect to pay the surcharge in a lump sum upon completion of construction of the Ferncliff Water Extension Project or may elect to pay the surcharge over time through a 15-year water rate surcharge included on the property owner’s bi-monthly water bill. If the property owner elects to pay the surcharge in a lump sum, the property owner must notify the city of their election and make payment in full within thirty days after the city notifies property owners of the final amount of the surcharge. Property owners who do not timely inform the City of their election to pay in a lump sum shall be deemed to have elected to pay the 15-year water rate surcharge; and 2. The system participation fee established by council resolution pursuant to BIMC 13.16.040. Notwithstanding any contrary provisions of BIMC 13.16.040, the property owner may elect to pay the system participation fee in a lump sum or the property owner may elect to pay the system participation fee over time through a 15-year water rate surcharge included on the property owner’s bi-monthly water bill. The system participation fee surcharge shall be in addition to the surcharge established in subsection C.1 above. The system participation fee surcharge shall include all costs incurred by the city as the result of property owners electing to pay the fee as a 15-year surcharge rather than as a lump sum, including, but not limited to, any additional financing charges. If the property owner elects to pay the system participation fee in a lump sum, the property owner must notify the city of their election and make payment in full prior to the city issuing a notice to proceed for construction of the Ferncliff Water Extension Project. Property owners who do not timely inform the City of their election to pay in a lump sum shall be deemed to have elected to pay the system participation fee as a 15-year water rate surcharge. 3. A property owner who initially elects to pay the 15-year water rate surcharge may elect to pay the remaining surcharge amount at any time in a lump sum. Once a lump sum payment is made in full, the property will no longer be subject to the water rate surcharge. D. Owners of properties served by the Casey Street Water System as shown on the map referred to in subsection B are current customers of the city water system and shall not be required to pay the system participation fee established by council resolution pursuant to BIMC 13.16.040. Owners of properties served by the Casey Street Water System shall be required to pay a {JEH2818379.DOCX;1/13023.130005/ } 3 surcharge established by council resolution equal to the property’s fair share of the actual final cost of the Ferncliff Water Extension Project. Owners of properties served by the Casey Street Water System shall pay the same surcharge and shall have the same lump sum payment and bi-monthly service charge options as those specified for properties served by the Ferncliff Water Association as provided in Subsection C above. E. Owners of properties in the surcharge area shown on the map but which are outside of the Ferncliff Water Association and Casey Steet Water System areas covered in Subsections C and D above, may connect to the Ferncliff Water Extension at any time during or after completion of construction. Such owners shall pay the following fees and charges: 1. The system participation fee established by council resolution pursuant to BIMC 13.16.040. The system participation fee shall be paid at the time of connection to the city water system through the installation of a water main tap, service line, and meter; and 2. A surcharge established by council resolution equal to the property’s fair share of the actual costs of the Ferncliff Water Extension Project. Owners of properties that connect to the city water system during construction of the water main across the property frontage or immediately after completion of construction of the Ferncliff Water Main Extension Project shall pay the same surcharge and shall have the same lump sum payment and bi-monthly service charge options as those specified for properties served by the Ferncliff Water Association as provided in Subsection C above. 3. Owners of properties governed by this subsection E that do not connect during construction of the water main across the property frontage or immediately after completion of construction of the Ferncliff Water Main Extension Project, but that do so within three years of completion of construction, shall pay the same surcharge, and shall have the same lump sum payment and bi- monthly service charge options, as those specified for properties served by the Ferncliff Water Association as provided in Subsection C above. In addition to those charges, such owners shall pay all construction costs associated with a new service connection, including but not limited to, the cost of the water main tap, service line, and meter. 4. Owners of properties governed by this subsection E that choose to connect more than three years after completion of construction of the Ferncliff Water Main Extension Project shall pay the surcharge established by City Council resolution in a lump sum at the time of connection, together with all construction costs associated with a new service connection, including but not limited to, the cost of the water main tap, service line, and meter. {JEH2818379.DOCX;1/13023.130005/ } 4 F. The water surcharge provided by this section shall be in addition to any water service charge or other fee or charge imposed by the City. Section 2. Severability. Should any section, paragraph, sentence, clause, or phrase of this ordinance, or its application to any person or circumstance, be declared unconstitutional or otherwise invalid for any reason, or should any portion of this ordinance be preempted by state or federal law or regulation, such decision or preemption shall not affect the validity of the remaining portions of this ordinance or its application to other persons or circumstances. Section 3. Effective Date. This ordinance shall take effect and be in full force five (5) days from its passage and publication as required by law. PASSED BY THE CITY COUNCIL this 13th day of June, 2023. APPROVED BY THE MAYOR this 13th day of June, 2023. Brenda Fantroy-Johnson, Mayor ATTEST/AUTHENTICATED: Christine Brown, MMC, City Clerk FILED WITH THE CITY CLERK: May 19, 2023 PASSED BY THE CITY COUNCIL: June 13, 2023 PUBLISHED: June 23, 2023 EFFECTIVE DATE: June 28, 2023 ORDINANCE NO. 2023-18 ATTACHED: Exhibit A Exhibit B EXHIBIT B FERNCLIFF WATER EXTENSION SURCHARGE AREA PROPERTIES FERNCLIFF WATER ASSOCIATION CONNECTIONS – 16 PARCELS (21 POTENTIAL) Tax Parcel No. Owner Lot 4169-000-022-0201 ALLEN MARILYN V 022-02 4169-000-023-0002 LOVELL CYNTHIA L 023-00 4169-000-023-0101 DRURY ROBERT L & HANSON SIRRI J 023-01 4169-000-024-0209 DAY ROBERT W 024-02 4169-000-024-0308 FREEMAN GLEASON ALISON J & FREEMAN GLEASON MATTHEW J 024-03 4169-000-024-0704 LAUKAITIS STEVEN J & TONDER LAUKAITIS MARIANN 024-07 4200-000-001-0207 PROCTOR MARY ANN 001-02 4200-000-001-0306 VOGEL ALAN J & TROST DONNA E 001-03 4200-000-007-0003 HANRAHAN JEROME C & JANET E 007-00 4200-000-008-0002 BLISS GARRISON & SUZANNE WU 008-00 4200-000-013-0005 FERNCLIFF BRIDGE LLC 013-00 4200-000-003-0304 BEACH KENNETH C & MURIEL J TRUSTEES 003-03 4169-000-022-0409 ZOCHER JOYCE ELAINE 022-04 4169-000-022-0508 WEEDING DAVID EUGENE & MARY GERBER 022-05 4200-000-012-0105 VALLARINO JUAN TRUSTEE & VALLARINO 012-01 4169-000-022-0300 GERBER KEVIN J TRUSTEE 022-03 CASEY STREET SYSTEM CONNECTIONS – 8 PARCELS (NO ADDITIONAL CONNECTIONS) Tax Parcel No. Owner Lot 232502-3-001-2001 BRUNTON JANE E 3-001 4169-000-025-0208 HUMPHREY MARIELA C & LABAIED MEHDI 025-02 4169-000-025-0307 SCHULZE MILES G & WANDA B 025-03 4169-000-025-0406 BERGAU RYAN KAWIKA & LEE KATHRYN NICHOLE 025-04 4169-000-025-0505 HALLIGAN SEAN M 025-05 232502-3-052-2009 GLAHN LEO M & SHERRY W CO TRUSTEES 3-052 232502-3-053-2008 ADAMS ANGELA KAY 3-053 232502-3-054-2007 MACKENZIE ROGER ANTHONY 3-054 FUTURE CONNECTIONS – 30 EXISTING PARCELS (47 MAXIMUM POTENTIAL CONN.) Tax Parcel No. Owner Lot 4143-000-018-0000 ALLEN JOHN R 018-00 4143-000-018-0109 AMIS DOROTHY 018-01 4200-000-002-0008 SINGLETON JERED L & SARAH 002-00 232502-3-008-2004 HEBNER KEVIN T 3-008 232502-3-040-2004 BRODERSEN RICHARD C & LISA E 3-040 4143-000-018-0000 ALLEN JOHN R 018-00 4143-000-018-0109 GACIOCH STANLEY J & DOMINIQUE A HOFFMAN 018-01 4143-000-018-0208 GRAND CAROLE LLC 018-02 4143-000-018-0307 MOORE DAVID W & CHARLENE B 018-03 4143-000-018-0406 WHITSON RICHARD & ERIN 018-04 4143-000-018-0505 BURKE TAMAH & SAUSKOJUS RODERICK JTWROS 018-05 4143-000-018-0604 ALLOIN JACQUES L 018-06 232502-3-038-2008 RIVERA ROMEO E 3-038 232502-3-041-2003 HEBNER KEVIN T 3-041 4169-000-022-0003 BAUER GARY J 022-00 4169-000-025-0109 MCGEE SEAMUS M 025-01 4200-000-002-0008 SINGLETON JERED L & SARAH 002-00 4200-000-004-0006 MARTENS JAMES E & OLGA 004-00 4200-000-005-0005 UPDEGROVE THERESA J & RICHARD 005-00 4200-000-010-0008 HAMBY SHANE & RACHEL 010-00 4200-000-003-0205 SMITH TIMOTHY WILLIAM 003-02 4169-000-025-0604 BUTLER BRADLEY J 025-06 232502-3-060-2009 KILLIAN ROBERT H & VIDA A 3-060 232502-3-061-2008 TANAKA EMMY 3-061 4169-000-026-0405 MACKAY T JR & LEONA H TRUSTEES 026-04 4200-000-015-0102 BENSON BERNARD M 015-01 4169-000-025-0703 SCHULZE MILES G & WANDA B 025-07 232502-3-072-2005 SUTTON DWIGHT & EDITH TRUSTEES 3-072 232502-3-073-2004 SUTTON DWIGHT & EDITH TRUSTEES 3-073 232502-3-079-2008 SUTTON DWIGHT & EDITH TRUSTEES 3-079