7-3-2: WATER SYSTEM CAPACITY FEE:
   A.    Establishment Of Water System Capacity Fee: Except as may be provided by this chapter or any amendment to this chapter, the applicant for approval of new water connections must either:
      1.    Deposit: Deposit at the district office the water system capacity fee before the district can issue a letter of intent to provide service or actually provide service to all or any part of the land which is the subject of the application. When, if and to the extent that the general manager of the district determines the services cannot be provided to the land which is the subject of the application or the applicant requests that the fees be refunded because the applicant does not plan to connect to the water system within the next twelve (12) months, the general manager shall order such fees to be refunded to the applicant in accordance with subsection D of this section. If and to the extent that the application for water service is granted by the general manager, the district shall deposit the water system capacity fee in a segregated account as is more fully set forth below.
      2.    Post Security: At the time of the application for a water service commitment, the owner shall post adequate security with the district to secure the payment of the water system capacity fee, before the district can issue a letter of intent to provide service or actually provide service to all or any part of the land which is the subject of the application.
         a. When, if and to the extent that the board determines that services will not be provided to the land which is the subject of the application, the board shall order such security for the fees to be released to the applicant.
         b. If and to the extent that the application for water service is granted by the board, the district shall require in the resolution granting the application and in any letter from the district which documents the granting of the application, as a condition to actually receiving any service, that the applicant pay the water system capacity fee to the district prior to the actual connection of the property to the water system (in addition to any fees for the actual cost of connection to the water system). Once the district receives the actual payment at the time of connection, the district shall pay that fee into a segregated account as is more fully set forth below.
         c. What constitutes adequate security shall be within the sole discretion of the board of the district.
   B.    Conditional Approval Of Application: Any approval of an application for a new water service shall be conditioned on both the applicant's signing a contract with the district to construct to the district specifications the improvements to the water delivery system and the payment of all fees and charges required by this chapter or by any other ordinance or resolution of the district. The water system capacity fee shall be in addition to any fees for the actual cost of connection to the water system. In addition to connection charges and the water capacity fee, the applicant may be required to install a water main or other water improvement if the board, in considering the application, concludes that such improvement is necessitated by the granting of the application. If such additional improvement is required, that improvement shall be constructed at the time the board directs but, in no event, later than the physical connection to the district water system of any of the property which is the subject of the application.
   C.    Determination Of Water System Capacity Fee:
      1.    Water System Capacity Fee Rate: The water system capacity fee shall be set on a per residential unit basis, for residential development, by resolution of the board of directors. For all development other than development which is exclusively residential, the rate shall be set after the board of directors consults an engineer of the board's choice who then advises the district of the expected usage of the development. The board shall then consider a fee for the development which is comparable on a volume of use basis to the fee set for residential units.
      2.    Procedure:
         a. Engineer's Report: At the time of the initial application for water service, the applicant shall deposit with the district the amount determined by the board as the estimated cost of the engineer's report and sign an agreement to reimburse to the district any cost of the engineer's report which exceeds the amount of the deposit. The district will then consult an engineer of the district's choice and arrange for a study and a report to be made to the board which includes all of the following:
            (1) The anticipated usage of capacity of the potable water wells expressed in terms of residential equivalents;
            (2) Any additional construction which will, in the engineer's opinion, be required to be performed on the district water delivery system in order to allow for the service to the new development without diminishing the level of service provided to the balance of the district users who are currently receiving service;
            (3) Any additional recommendations to offset costs to the district of the new growth; and
            (4) Whether the district currently owns enough capacity to accommodate the growth.
         b. Board Determination Of Exactions To Be Required: The board will not act on the application until after the submission of the engineer's report. Any approval of the application issued by the board will be conditioned upon the payment of the full amount of the water system capacity fee prior to the actual connection of any of the connections approved by the board in its action on the application. After the submission of the engineer's report, the water system capacity fee shall then be set by the board for that particular project and what additional improvements would be required to the district water delivery system before it will allow the connection. If the board determines that the applicant will have to construct any such improvements, then the board will enter into an agreement with the applicant as a condition of the granting of the application that the applicant will construct the improvements identified by the engineer to the district specifications before connecting any of the new water users to the district system.
         c. Exceptions For Single-Family Dwelling Unit: An engineer's report will not be required for connection of a single-family dwelling unit. "Dwelling unit" means one or more habitable rooms which are occupied or which are intended or designed to be occupied by one family with facilities for living, sleeping, cooking and eating. Furthermore, the general manager shall have authority to approve the application for service for a single-family dwelling.
         d. Obtaining Additional Capacity: In the event that the board grants an application and the district does not currently own sufficient capacity to serve the development, it shall be up to the district to either:
            (1) Arrange for the purchase of additional capacity from other public agencies; or
            (2) Arrange for the construction of new wells to provide adequate capacity.
   D.    Refund Of Water System Capacity Fee: In the event that the general manager of the district determines that the district is unable to provide water service to the applicant's property within one year of the applicant's request for water service, or if the applicant requests a refund of the water system capacity fees because the applicant does not plan to connect to the water system within the next twelve (12) months, the general manager shall order the water capacity system fees paid by applicant refunded to the applicant. The applicant shall be paid no interest by the district for the use of the funds prior to the refund of the water system capacity fee, unless the district determines it is unable to provide the water service. In such case, when the district determines that the district is unable to provide the water service to the applicant, the applicant shall receive five percent (5%) on the funds deposited with the district from the date the funds were deposited. If the applicant desires to have the meter removed, the district shall remove the meter for a charge established by resolution of the board of directors. Upon the applicant's or a successor in interest's application for a connection to the water system, the applicant shall pay the water system capacity fee and connection fees in effect at the time of the application pursuant to this code. The applicant or his successor in interest shall receive no credit or any amount paid previously. (Ord. 09-230, 1-8-2009)