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A. General.

1. The utility shall collect connection charges so that each developed property bears its equitable share of the cost of the public drainage system;

2. Connection charges shall be paid:

a. When property is changed from an undeveloped to a developed condition; and

b. At the time of redevelopment of the property, if a direct facilities charge applies that has not yet been paid, such as a charge for a new facility that directly benefits the property;

3. Connection charges that have been paid as a result of prior development activities on the property or through participation in an LID or ULID shall not be reassessed; and

4. The utility may enter into contracts with property owners of existing single-family homes and with the property owners of redevelopment projects that meet criteria specified by the utility for payment of connection charges over time instead of as a lump sum. The utility shall charge interest, as determined by the director, on any outstanding debt covered by a payment contract. A contract shall be payable in full at the time of closing upon sale of the property.

B. Direct Facilities Charges.

1. The utility shall collect direct facilities charges from property owners that directly benefit from utility-built or privately built public drainage facilities, except property owners who previously paid their fair share through an LID or ULID;

2. The direct facilities charge is the property owner’s equitable share of the established costs of the facilities he/she benefits from. The equitable share shall include interest charges applied from the date of construction acceptance of the facility until the property connects, or for a period not to exceed 10 years, whichever is less, at a rate determined by the director and based on established industry construction cost indices, but not to exceed 10 percent per year; provided, that the aggregate amount of interest shall not exceed the equitable share of the cost of the facility allocated to such property owner;

3. The facilities’ costs shall be allocated to benefitting property owners based on the number of single-family equivalents. The director may, however, make such allocation based on front footage or other reasonably based methodology if the director determines that such alternate basis or methodology better assures equitable sharing of cost by all properties benefitting from the facilities; and

4. Properties within the Meydenbauer Drainage Basin and properties within the Central Business District (CBD), lying between N.E. 2nd Street and N.E. 12th Street, are subject to a facilities charge in an amount and to the extent provided in Sections 4 and 5 of Ordinance No. 3372, as now or hereafter amended.

C. Any connection charge as provided in subsections A and B of this section may be waived with respect to construction of shelters or affordable housing projects as found by the director, provided there is nonutility revenue available to reimburse the city for the charges waived.

D. Administrative Procedures – Adjustment of Charges. The director is authorized to adopt administrative procedures for the purposes of administering the provisions of this section, and to adjust the charges established by subsections A and B of this section from time to time to reflect the actual cost of the facilities for which the charges are made. (Ord. 6642 § 1, 2022; Ord. 5905 § 1, 2009.)