§ 9.04.410. Rates and service charges

A.

The amounts of all charges provided for herein shall be established on a monthly basis (even if billed bimonthly) by the city sewer rate ordinance approved by four-fifths of the members of the city council. Fees and charges imposed by the city sewer rate ordinance shall include, but not be limited to the following:

B.

Sewer service planning charge:

1.

The sewer service planning charge is to reimburse the city for administrative legal, engineering and regulatory expenses in evaluating the impact a proposed development may have on the city's sewer collection and treatment systems and to establish conditions under which such development may be allowed to proceed.

2.

The sewer service planning charge is to be collected with each application for approval of a development or subdivision and is to be set by the city council on a case by case basis by minute order or resolution adopted by the city council.

3.

Sewer service planning charges are to be deposited in the sewer operation and maintenance account.

C.

Plan checking charge:

1.

The plan checking charge is to reimburse the city for administrative, legal, engineering and regulatory expenses to review and check the construction plans and specifications of sewer facilities to be installed as part of a proposed development to verify that such charge meets city standards.

2.

The plan checking charge shall consist of an application processing charge and a plan checking charge. The plan checking charge is to be collected with each application for permit to construct sewer facilities.

3.

Plan checking charges are to be deposited in the sewer operation and maintenance account.

D.

Discharge permit charge:

1.

The discharge permit charge is to reimburse the city for administrative, legal, engineering and regulatory expenses to verify the nature and quantity of a proposed discharge, to verify that the city's system can accommodate such discharge, and to issue a permit to connect to the city's system and make such discharge.

2.

The discharge permit charge is to be collected with each application for discharge permit.

3.

Discharge permit charges are to be deposited in the sewer operation and maintenance account.

E.

Connection capacity charge:

1.

The connection capacity charge represents the proposed connection's pro-rata share of the cost of the sewer system facilities that are in place at the time the connection is made. The charge shall be based on the quantity of discharge from the proposed connection as it relates to the total capacity of the sewer system.

2.

The connection capacity charge is to be collected at the time a permit to construct sewer facilities is issued. (Connection capacity charges shall be paid either at time of application for a connection or prior to the connection of service, or both, as provided by ordinance of the city council.)

3.

Connection capacity charges are to be deposited in the sewer capital improvement account.

F.

Construction inspection charge:

1.

The construction inspection charge is to reimburse the city for administrative, legal, engineering, inspection, and testing expenses incurred during the construction of sewer facilities for a development to verify that such construction meets city standards.

2.

The construction inspection charge is to be collected at the time a permit to construct sewer facilities is issued.

3.

Construction inspection charges are to be deposited in the sewer operation and maintenance account.

G.

Disconnect fee:

1.

The disconnect fee is to reimburse the city for administrative, legal, engineering, regulatory and construction expenses incurred to physically disconnect a user from the sewer system.

2.

The disconnect fee is to be collected with each application for approval disconnection from the city's system.

3.

Disconnect fees are to be deposited in the sewer operation and maintenance account.

H.

New or reconnected customer deposit:

1.

Every new customer or reconnected customer shall post a deposit not greater than three months billing for the class of service they intend to use. The amount to be provided by the customer shall be determined by the finance director based upon the credit worthiness of the customer.

2.

The new customer deposit shall be deposited and held in the sewer operation and maintenance account.

3.

If after one year of service, the customer has paid all monthly charges on time and incurred no late fees or interest charges, the deposit shall be credited against future monthly charges.

4.

If the customer has incurred late fees and penalties, the deposit shall be held until such time as the customer has one year of on-time payments and then the deposit shall be credited against future monthly charges.

5.

If a customer who has no funds on deposit with the city incurs late fees and penalties for two successive billing periods, the finance director may require the customer to post a new or initial security deposit with the city as a precondition of the city continuing to provide sewer service to the premises for which the bills were rendered and, in such event, said new or initial deposit shall be subject to the provisions of this section.

I.

Monthly sewer service charge:

1.

The monthly sewer service charge (even if billed bimonthly) is to reimburse the city for routine expenses incurred in the operation sewer system and shall include debit service, sinking fund, and operating and maintenance elements.

2.

The monthly sewer service charges for domestic sewer service shall be on a fee rate based on the occupancy type of the dwelling unit.

3.

The monthly sewer service charges for commercial sewage shall be based on the average amount of water consumed during the months of November, December, and January, as recorded on the utility company water meter for the parcel as compared to a dwelling unit. The minimum charge shall be equivalent to one EDU.

4.

The monthly charges for industrial sewage shall be based on the recorded gallonage obtained by a meter installed and maintained at the expense of the owner or occupant of the premises. Charges shall take into account the volume and the characteristics of wastes being discharged, plant capacity utilized to treat the wastes, and other such factors as are required by state, federal or other governmental agencies having jurisdiction.

5.

The monthly sewer service charge for temporary sewer service shall be 1½ times the charge for domestic sewer service.

6.

Monthly sewer service charges are to be deposited in the sewer debit service facilities replacement sinking fund, and sewer operation and maintenance accounts according to the allocation ratio adopted by the city council.

J.

Payment of sewer charges:

1.

The finance director shall render bills for sewer services on a bimonthly basis.

2.

Bills and are due and payable on the date of the bill and shall become delinquent 35 days thereafter.

3.

Any bill which is not paid in full on or before the delinquent date shall be subject to a ten percent delinquency penalty plus interest at the rate of one percent per month of the unpaid balance (not including the delinquency penalty) for each month or portion thereof from the date of delinquency to the date of payment.

4.

All charges and penalties that are not paid shall become a lien on the property except as is otherwise provided in this chapter.

K.

Use of revenues: The city finance director shall collect all moneys that shall become due to the city for sewer service planning charges, plan checking charges, discharge permit charges, connection capacity charges, inspection charges, disconnection charges, new customer deposits, and all other costs, charges, penalties, and fees as provided herein and shall pay them into the city treasury and account for them in the same manner as the city pays into the city treasury and accounts for all other sums received in his official capacity.

All funds received from charges imposed by this chapter or the city sewer rate ordinance shall be placed in special sewer funds to be known as the sewer enterprise fund and shall be segregated into the following accounts:

1.

Operation and maintenance account;

2.

Debit service account;

3.

Facilities replacement sinking fund account;

4.

Capital improvement account; and

5.

Capacity charges account.

The sewer operation and maintenance account shall receive moneys collected from service planning charges, plan checking charges, discharge permit charges, inspection charges, disconnection charges and the operation and maintenance portion of the monthly service charges, and shall thereafter expend such moneys for the routine operation and maintenance, including management, administration and engineering of the sewer system.

The sewer debit service account shall receive moneys collected from the debit service portion of the monthly service charges and shall thereafter expend such moneys to repay principal and interest on bonds issued for the construction or reconstruction of such system, and to repay federal, state or commercial loans made to the city for the construction or reconstruction of said sewage system.

The sewer facilities replacement sinking account shall receive moneys collected from the sinking fund portion of the monthly service charges and shall thereafter expend such moneys for the reconstruction and replacement of elements of the sewer system at the end of their useful life.

The sewer capital improvement account shall receive moneys collected from connection capacity charges and shall thereafter expend such moneys for the acquisition of land and/or easements, to pay for oversizing of developer funded facilities, new construction and expansion of the city's sewage system.

L.

Restrictions upon use of sewer capacity charges: The city shall account for the charges placed in the sewer capital improvement account in a manner to avoid any commingling with other moneys of the city in the sewer enterprise fund or the city treasury, except for investments, and shall expend those charges solely for the purposes for which the capacity charges were collected. Any interest income earned from the investment of moneys in the sewer capacity charges account shall be deposited in that account.

The city shall make available to the public, within 180 days after the last day of each fiscal year, the following information for that fiscal year relating to the sewer capital improvement account:

1.

A description of the charges deposited in the account.

2.

The beginning and ending balance of the account and the interest earned from investment of moneys in the fund.

3.

The amount of charges collected in that fiscal year.

4.

An identification of all of the following:

a.

Each public improvement on which charges were expended and the amount of the expenditure for each improvement, including the percentage of the total cost of the public improvement that was funded with those charges if more than one source of funding was used.

b.

Each public improvement on which charges were expended that was completed during that fiscal year.

c.

Each public improvement that is anticipated to be undertaken in the following fiscal year.

5.

A description of each interfund transfer or loan made from the account. The information provided, in the case of an interfund transfer, shall identify the public improvement on which the transferred moneys are, or will be, expended. The information, in the case of an interfund loan, shall include the date on which the loan will be repaid, and the rate of interest that the fund will receive on the loan.

6.

The information required pursuant to subparagraph 4, above, may be included in the local agency's annual financial report.

7.

The requirements set forth above for deposit, use and account for capacity charges do not apply to any of the following:

a.

Moneys received to construct public facilities pursuant to a contract between a local agency and a person or entity, including, but not limited to, a reimbursement agreement pursuant to section 66003 of the California Government Code.

b.

Capacity charges that are used to pay existing debt service or which are subject to a contract with a trustee for bondholders that requires a different accounting of the charges, or charges that are used to reimburse the local agency or to reimburse a person or entity who advanced funds under a reimbursement agreement or contract for facilities in existence at the time the charges are collected.

c.

Capacity charges collected on or before December 31, 1998.

M.

Failure to pay fees and charges: The failure to pay any fee or charge pursuant to a duly adopted city sewer rate ordinance shall constitute a violation of this chapter, and shall be subject to fines and penalties set forth in this chapter.