A. General. Every lot or parcel that connects to the city water distribution system is subject to a water system development fee established to recover the capital costs of the city's existing or new water diversion, treatment, storage, and distribution facilities. No water service shall be furnished to the lot or parcel unless this fee has been paid. This requirement does not apply to the extent that the fee established by this section, or the equivalent thereof, has previously been paid by the owner of the lot or parcel, or a predecessor of the owner, or if the lot or parcel meets the qualifications for an infill site as established by city council resolution. Payment of this fee is in addition to payment of all other applicable fees and charges.
B. Amount of Water System Development Fee. The fee established by this section is determined by reference to a schedule of fees adopted by city council resolution, subject to annual adjustment made by the director as provided in subsection C of this section.
C. Annual Adjustment. In January of each year, the director shall adjust the water system development fee schedule then in effect to compensate for an increase in construction costs since the previous adjustment, by applying the following methodology:
1. The director shall first calculate the "current construction cost index," which shall be the average of: (a) the average construction cost index for twenty (20) U.S. cities published in the appropriate January issue of "Engineering News Record" (ENR) magazine; and (b) the construction cost index for San Francisco published in the same issue of ENR magazine.
2. The director shall then calculate the "fee adjustment factor," by dividing the current construction cost index calculated pursuant to paragraph 1 of this subsection by the construction cost index that was calculated in January of the last year in which the water system development fee schedule was changed.
3. If the fee adjustment factor calculated pursuant to paragraph 2 of this subsection is one or less, the water system development fee schedule then in effect shall remain unchanged. If the fee adjustment factor calculated pursuant to said paragraph is greater than one, the director shall adjust the water system development fee schedule then in effect by multiplying each of the fees therein by the fee adjustment factor. If the water system development fee schedule is adjusted as provided herein, the adjusted water system development fee schedule shall become effective on July 1st following the January when the fee adjustment factor is calculated pursuant to paragraphs 1 and 2 of this subsection.
D. Replacement Services. If an existing water service connection or meter is replaced by one of a larger size at the owner's request, the water system development fee equals the difference between the current fee for the existing service connection size and the current fee for the replacement service connection size. If the existing water service connection was oversized to provide water for fire protection in addition to commercial or domestic service, and no water system development fee was paid for the existing service, the calculation of the current fee for the existing service size excludes the size increment that was required solely for fire protection.
E. Fire Services. The water system development fee does not apply to connections made solely for fire service.
F. Credit for Major Facilities. Nothing in this ordinance prohibits the city council from authorizing appropriate credit toward water system development fees for property owners who were assessed or in some manner paid all or a portion of the cost of water diversion, treatment, storage, or transmission facilities.
G. Appeal. There is established a water system development fee determination board. The board's membership consists of the director and the building official, or their respective designees. Any person aggrieved by the determination of the water system development fee for property owned by such person may file a written appeal with the building official. The appeal shall be reviewed by the board, and notice of the determination of the board shall be given to the property owner. If the appeal is granted, an appropriate refund shall be made, based on the recalculated development fee.
If the appeal is not granted, notice shall be given to the property owner that shall briefly specify the reason for the decision of the board. Any property owner who receives such notice and who desires to have the appeal reconsidered by the board may apply for a hearing by filing a written application with the building official not later than fifteen (15) calendar days following the property owner's receipt of the notice that the written appeal was denied. The board shall, not later than thirty (30) calendar days after application for a hearing, schedule a hearing upon ten (10) days written notice to the property owner. The property owner or his or her representative may present at the hearing any evidence relevant to the appeal. The board shall reevaluate the appeal. In considering the appeal, the board may obtain an inspection report from the department. Written notice of the board's action shall be given to the property owner and the order of the board shall be final.
H. Nonpayment. If water service is initiated without payment of the water system development fee as required by this section, water service may be disconnected until the fee is paid. (Ord. 2013-0014 § 21; Ord. 2001-033 § 1)