A. The city users of the municipal electrical system have borne the costs for the existing electrical system in the city, which includes the substation from which municipal power is distributed, and all of the electrical equipment required to keep the system in operation. New connections by owners of property of proposed users of the municipal electrical system will use a portion of the capacity of these existing facilities, which facilities were paid for, or have been constructed by and are owned by the city. Therefore, an electrical capacity fee must be paid to the city for any new connection to the municipal electrical system, or an upgrade of an existing connection that provides the ability to utilize more power.
B. The electrical capacity fee will be a one-time charge collected with the building permit that involves the new connection. The amount of the electrical system capacity fee shall be 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 electrical system. The current fund and account to which this fee will be applied is 620-3641. 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) resulting in a rate change of at least $25 shall be reflected in the master fee schedule as adopted by resolution of the city council effective April 1 of that year. The fee shall be changed in $25 increments reflecting the cumulative CCI change from the most recently published rate.
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. 695, 2000; Ord. 727, 2004)