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Resolution - 2024 - 24-03 - Amending The Fee Schedule For The Water Department - 07/09/2024 RESOLUTION 24-03 A RESOLUTION OF THE CITY OF EAGLE, ADA COUNTY, IDAHO, AMENDING THE FEE SCHEDULE FOR THE WATER DEPARTMENT IN ACCORDANCE WITH EAGLE CITY CODE SECTION 1-7-4; REPLACING STORAGE AND TRUNK LINE FEES (STL), REPLACING WATER CONSTRUCTION EQUIVALENCY FEES (WCE), AND REPLACING WATER HOOK-UP FEES WITH A CAPITALIZATION FEE AND METER FEE; ESTABLISHING A NEW CAPITALIZATION FEE AMOUNT PER EQUIVALENT DWELLING UNIT (EDU) FOR NEW CUSTOMERS CONNECTING TO THE CITY-OWNED, OPERATED AND MAINTAINED WATER SYSTEM; ESTABLISHING A NEW METER FEE FOR NEW DWELLINGS CONNECTING TO THE CITY-OWNED, OPERATED AND MAINTAINED WATER SYSTEM; SETTING EQUIVALENT DWELLING UNITS BASED ON METER SIZE; PROVIDING FOR RELATED MATTERS; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, the City of Eagle, Idaho ("City") is a municipal corporation operating under the laws of the State of Idaho and is authorized to fix rates and charges and take such other actions incidental to the management and operation of a municipal water system pursuant to Title 50, Chapter 10, Idaho Code; and WHEREAS, development within the City increases the demand on the City's Water System requiring sustained vigilance over sources of supply, treatment, operation, maintenance, repair, replacement of and improvements to the City's Water System within the City of Eagle Water Service Area; and WHEREAS, an Idaho Supreme Court decision has required cities to calculate certain cost-based capitalization City utility fees using a specific methodology; and WHEREAS, following the Idaho Supreme Court's decision, the City Council directed the City Engineer to conduct a study to review the capitalization fees associated with the City's water system; and WHEREAS, the City Engineer completed a City of Eagle Water System Capitalization Fee Study, dated January 2024, for the Eastern and Western water zones only which identified deficiencies in the City's prior fee collection amount(s); and WHEREAS, the City of Eagle Water System Capitalization Fee Study, dated January 2024, does not apply to the Valnova and Avimor developments or any development not utilizing the capacity in the Eastern or Western water zones; and WHEREAS, the City Council has determined that Storage and Trunk Line (STL) fees and Water Construction Equivalency (WCE) Fees should be replaced with Capitalization Fees which are determined by periodic review of the existing system to establish equitable fees to provide equity buy-in; and WHEREAS, the City Council has determined that a portion of the Capitalization Fee shall be collected at the time of preliminary plat submittal and the remainder of the fee shall be collected at the time of the final plat submittal; and WHEREAS, the City Council has determined that the Water Hook-Up Fee should be replaced with a Meter Fee which will be reviewed annually to reflect current costs; and WHEREAS, the City periodically reviews the fee schedule to establish reasonable fees and rates to cover the costs associated with the demand on the City's Water System; and WHEREAS, the City duly noticed and held a public hearing on the new fees as required by law; and k:\council\resolutions\fee resolutions\resolution 24-03,establishing new capitalization fees for water,edited,final.docx WHEREAS, the City Council has determined that good cause exists for establishing a Capitalization Fee and Meter Fee for new developments in the City. NOW THEREFORE, BE IT RESOLVED BY THE MAYOR AND CITY COUNCIL OF THE CITY OF EAGLE, IDAHO: Section 1: The Capitalization Fee shall be based on Equivalent Dwelling Unit (EDU). Section 2: Payment of the Capitalization Fee for Residential properties shall be made in accordance with the rate table located in Exhibit A with a portion due at the time preliminary plat applications are submitted and the remaining balance due at the time final plat applications are submitted. Section 3: Payment of the Capitalization Fees for Non-Platted Residential properties and Non-Residential properties shall be made at issuance of building permit and based on meter size. Section 4: Payment of the Meter Fee shall be made at issuance of building permit and based on meter size. Meters greater than 2-inch shall be calculated on an individual basis. Section 5: Calculation of Equivalent Dwelling Units (EDU's) shall be based on meter size using the table located in Exhibit A. Section 6: Capitalization Fees may not be deferred. Capitalization Fees may be refunded upon City Council denial of a preliminary plat. Application fees may not be refunded. Additional administration costs will be calculated and may be withheld from the fees eligible for refund. Following City Council approval of a preliminary and/or final plat, Capitalization Fees shall not be refunded. Section 7: The Developer may provide for construction of the public water system improvements identified in the Water Master Plan upon written approval of the City in lieu of a portion of, but not exceeding, the total Capitalization Fee provided for herein. Upon written approval of the City, the Capitalization Fee may be credited/reimbursed as follows: 1. All eligible costs shall be approved in writing by the City Water Superintendent before the costs are incurred. 2. All contractors must hold a current Public Works license. 3. All credits/reimbursements will be based on the lowest qualified bid amount received for the eligible water components. Qualified bids shall be obtained following the State of Idaho Procurement Statute in Idaho Code Title 67, Chapter 28. Work related to obtaining water rights will be considered on a case-by-case basis and may be eligible for reimbursement. 4. Eligible costs may include those costs incurred for improvements having system-wide application as defined in the Water System Master Plan including water right transfer, appropriation, well construction, trunk line construction and associated valves, pressure reducing/boosting stations, and storage reservoir construction. 5. Costs not eligible for credit/reimbursement shall include, but not be limited to: (a)distribution system design and approval, (b) construction of distribution or service extensions within the development, (c) water system extensions which benefit only a single development, (d) defending against appeals, protests, or other legal challenges, (e) design and construction modifications required by the Idaho State Department of Environmental Quality, (f) contractors hired directly by the Owner. Ic\council\resolutions\fee resolutions\resolution 24-03,establishing new capitalization fees for water,edited,final.docx 6. The determination as to whether eligible costs are allocated as a credit or a reimbursement shall be made at the discretion of the City Water Superintendent, subject to appeal of the City Council. Section 8: Existing City rates and fees that are not in conflict with the rates and fees adopted by this Resolution shall remain in full force and effect. Section 9: Waivers to the Capitalization Fee may be granted on a case-by-case basis by the City Council to those properties with existing preliminary plat approval who have previously paid portions of the STL Fees at the time of the passage of this resolution, as illustrated in Exhibit B. Waivers shall be formalized in an agreement between the developer of the property and the City of Eagle. Section 10: That the Mayor and City Council are hereby authorized to execute said schedule for and on behalf of the City of Eagle. Section 11: This Resolution shall be in full force and effect immediately((,,� upon its adoption and approval. ADOPTED by the Council of the City of Eagle, Idaho, on this "1 day of July 2024. CITY OF EAGLE Ada County, Idaho Brad Pike Mayor ATTEST: to etytetcnU,,,,,s f. : r� e ° e Tracy E. Osborn City Clerk '7.-sk S1;A LV 0. a Ic\council\resolutions\fee resolutions\resolution 24-03,establishing new capitalization fees for water,edited,final.docx Exhibit A City of Eagle Update Water Fees Capitalization Fees and Meter Fees Water Department EDU=Equivalent Dwelling Unit ERU EDU Based Fees Base Fee (3/4"Meter) ERU EDU Multiplier For meters larger than 3/4 inch,please $1,600.00 per EDU Due at Preliminary Plat Submittal,per use the ERU EDU multiplier(below)to residential lot calculate the appropriate Capitalization Fee. 1"meter=1.78 Capitalization Fee $6,432.00 per EDU Due at Final Plat Submittal,the remaining 1.5"meter=4.0 balance,per residential lot 2"meter=7.11 Non-Platted Residential Properties and 3"meter=16.0 $8,032.00 per EDU Non-Residential Properties,due at 4"meter=28.44 issuance of building permit 6"meter=64.20 Meter Fee,3/4" $703.00 Meter Fee,1" $800.00 Meters greater than 2"shall be calculated Meter Fee,1.5" $1,244.00 on an individual basis. Meter Fee,2" $1,480.00 lc:\council\resolutions\fee resolutions\resolution 24-03,establishing new capitalization fees for water,edited,final.docx Exhibit B City of Eagle Capitalization Fees Subdivisions Eligible for Waiver of Capitalization Fees STL PRELIMINARY PLAT FEES PAID Preliminary Plats - Fees Paid Brookstone Carrara Estates Cascade Springs Everton Headquarters Millstone Farms Mosscreek Terra View Terra View South Tierpointe Torrente Secco Subdivisions granted a waiver to the Capitalization Fees shall continue to pay STL Fees and Builders/Owners will be subject to WCE Fees and Hook Up Fees for the properties defined in the waiver agreements during the period the waiver is granted. k:\council\resolutions\fee resolutions\resolution 24-03,establishing new capitalization fees for water,edited,final.docx