A. The city users of the water system and property owners have borne the costs for the existing water system in the city which includes tanks, wells, pump houses, pumps and mains and other related maintenance materials and equipment. New connections by owners of property or proposed users of the water system will involve use of the capacity of these existing water facilities which were paid for, or have been constructed for, and are owned by the city.
B. Therefore, a water system capacity fee must be paid to the city for any connection to the city water system, which will result in an increase in water volume or flows. The amount of the water system capacity fee shall be as specified in Section 13.12.055. These fees shall also be reflected in the Master Fee Schedule separately adopted by resolution of the city council.
C. The fees collected are to be placed in a fund to be used for capital improvements to the water system. The current fund and account to which this fee will be applied is 640-3641. The fund balance of this fund will be reserved for capital improvement projects.
D. After the initial rate modification, effective June 1, 2004, the capacity fee will be evaluated annually. Any cumulative increase in the Engineering News Record’s Construction Cost Index (CCI) from the CCI used for the existing fee amount resulting in a rate change of at least $25 shall be presented to the city council in a public hearing by the first regular council meeting in March of each year for review and possible adjustment by ordinance. Any adjustment shall be further reflected in the Master Fee Schedule as adopted by resolution of the city council effective April 1 of that year. The minimum fee change shall be $25 reflecting the cumulative CCI change from the CCI used for the currently published fee.
E. The CCI (or its successor) published in January for December of the previous year shall be the index used for determining any rate change. The initial CCI for the purposes of this fee is 6825 as published in the January 2004 Engineering News Record.
(Ord. 539 (part), 1988; Ord. 727, 2004).