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HomeMy WebLinkAbout4701A Ordinance Amending PMC 3.35.160, 13.15.030 & 13.45.060 Water Rights Fees - Scrivener's ErrorOrdinance – Amending PMC 3.35.160, 13.45.060 & 13.50.030 - 1 Version 09.01.23 ORDINANCE NO. 4701A AN ORDINANCE OF THE CITY OF PASCO, WASHINGTON, AMENDING THE PASCO MUNICIPAL CODE SECTION 3.35.160 WATER UTILITY, ADJUSTING THE WATER RIGHTS ACQUISITION FEE; SECTION 13.15.030 CONNECTION OUTSIDE CITY LIMITS – WATER RIGHTS, AND SECTION 13.45.060 ASSIGNMENT OF WATER RIGHTS–EXTENSION OF CITY WATER SERVICES BEYOND CITY LIMITS. WHEREAS, recent water rate studies and fees of utility systems are generally conducted on periodic intervals to ensure they provide adequate revenue for the utilities, and to ensure rates, charges, and fees are, and continue to be, in conformance with State law; and WHEREAS, the purchase of water rights by the City of Pasco (City) to support future development is becoming increasingly more difficult as landowners recognize the increased market value of water rights; and WHEREAS, the market for water rights acquisition has increased significantly over the past several years such that the value of water rights far exceeds the City’s current Water Rights Acquisition Fee of $1,725.00 per acre-foot; and WHEREAS, the increase in value of water rights has resulted in developments within the City choosing to pay the current Water Rights Acquisition Fee of $1,725.00 per acre-foot and selling their water rights for a higher amount based on the current market value; and WHEREAS, staff is also aware that some owners of property within the City are transferring their water rights to properties outside the City and then paying the current Water Rights Acquisition Fee of $1,725.00 per acre-foot; and WHEREAS, it is increasingly more difficult for the City to acquire water rights at the current market price as landowners recognize the increased market value of water rights and the City’s lack of sufficient funds collected from the current Water Rights Acquisition Fee; and WHEREAS, owners of water rights are showing more interest in leasing water rights through long-term contracts rather than selling the water rights, which would put cities like Pasco in a position of owning nothing after making 20 years of lease payments; and WHEREAS, in September 2022, the City contracted with Darryll Olson of Pacific Northwest Project to evaluate the water rights market and provide a recommendation to the City regarding the fair market value of water right purchases; and SCRIVENER’S ERRORS This Ordinance corrects Scrivener’s errors and replaces Ordinance No. 4701 See text highlighted in yellow on page 7 Ordinance – Amending PMC 3.35.160, 13.45.060 & 13.50.030 - 2 Version 09.01.23 WHEREAS, in October 2022, Pacific Northwest Project provided the City with the results of their market analysis and estimated a current water rights value of $4,150.00 per acre-foot, a 140.6% increase over the current Water Rights Acquisition Fee; and WHEREAS, it is in the City’s best interest to discourage payment of the Water Rights Acquisition Fee and instead have developers transfer available water rights to the City to help serve new development in Pasco; and WHEREAS, to ensure the City’s ability to purchase water rights in the future to adequately serve new developments, the proposed Water Rights Acquisition Fee includes a 50% surcharge to account for future increases in market value and encourage the transfer of water rights to the City rather than payment of the Water Rights Acquisition Fee; and WHEREAS, the PMC Section 13.45.060 “Assignment of Water Rights – Extension of City Water Services beyond City Limits” requires, as a condition of extending water beyond the City limit to serve new development, water rights must be transferred to the City; and WHEREAS, it is in the City’s interest to require the transfer of available water rights to the City for all new development both within and beyond the city limit. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF PASCO, WASHINGTON DO ORDAIN AS FOLLOWS: Section 1. That Section 3.35.160 entitled “Water utility effective January 1, 2022” of the Pasco Municipal Code shall be and hereby is amended and shall read as follows: 3.35.160 Water utility effective January 1, 2022. Fee/Charge Reference 2021 2022 2023 2024 2025 2026 Inside city: Consumption – per 100 cubic feet: Residential/commercial $0.88 $0.94 $1.00 $1.07 $1.12 $1.18 13.20.050 Bulk – per 1,000 gallons $1.45 $1.54 $1.64 $1.75 $1.84 $1.93 13.20.080 Residential – single- family base fees: 3/4 and 5/8 inch – per month $20.55 $21.89 $23.31 $24.83 $26.07 $27.37 13.20.020 1 inch – per month $30.81 $32.82 $34.95 $37.22 $39.08 $41.03 13.20.020 Senior reduced/low income: Ordinance – Amending PMC 3.35.160, 13.45.060 & 13.50.030 - 3 Version 09.01.23 Fee/Charge Reference 2021 2022 2023 2024 2025 2026 3/4 and 5/8 inch – per month $6.83 $7.27 $7.74 $8.24 $8.65 $9.08 3.65.150 1 inch – per month $10.30 $10.97 $11.68 $12.44 $13.06 $13.71 3.65.150 Commercial – base fees: 3/4 inch – per month $28.97 $30.85 $32.86 $35.00 $36.75 $38.59 13.20.030 1 inch – per month $42.37 $45.12 $48.05 $51.17 $53.73 $56.42 13.20.030 1-1/2 inch – per month $81.60 $86.90 $92.55 $98.57 $103.50 $108.68 13.20.030 2 inch – per month $130.86 $139.37 $148.43 $158.08 $165.98 $174.28 13.20.030 3 inch – per month $178.74 $190.36 $202.73 $215.91 $226.71 $238.05 13.20.030 4 inch – per month $257.54 $274.28 $292.11 $311.10 $326.66 $342.99 13.20.030 6 inch – per month $402.01 $428.14 $455.97 $485.61 $509.89 $535.38 13.20.030 8 inch – per month $557.10 $593.31 $631.88 $672.95 $706.60 $741.93 13.20.030 Fee/Charge Reference Outside City; effective 11/1/02: Consumption – per 100 cubic feet: Residential/commercial 90% surcharge 13.20.090 Bulk – per 1,000 gallons 90% surcharge 13.20.090 Residential – single-family base fees: 3/4 and 5/8 inch – per month 90% surcharge 13.20.090 1 inch – per month 90% surcharge 13.20.090 Senior reduced/low income 90% surcharge 13.20.090 Commercial – base fees: All sizes 90% surcharge 13.20.090 Fee/Charge Reference Fire hydrants: Meter rental: Ordinance – Amending PMC 3.35.160, 13.45.060 & 13.50.030 - 4 Version 09.01.23 Fee/Charge Reference 2021 2022 2023 2024 2025 2026 Refundable deposit Not to exceed 110% of Cost, as determined by the Director of Finance 13.20.080 Nonrefundable removal fee $30.00 13.20.080 Monthly base rental fee $62.00 Late payment and not returning meter after 48 hrs. (per day) $50.00 Hydrant rental – outside corporate limits, per year $20.00 13.20.070 Charges for water meters and services: Meter and service costs equal to average cost to City based on prior year 13.45.010 Move meter for owner Cost + 15% 13.30.060 Change meter size Cost + 15% 13.30.050 Water system capital expansion/replacement charges Inside City limits: 3/4-inch meter $360.00 13.25.010 1-inch meter $601.00 13.25.010 1-1/2-inch meter $1,198 13.25.010 2-inch meter $1,918 13.25.010 3-inch meter $3,599 13.25.010 4-inch meter $5,999 13.25.010 6-inch meter $11,995 13.25.010 8-inch meter $19,192 13.25.010 10-inch meter $27,591 13.25.010 Ordinance – Amending PMC 3.35.160, 13.45.060 & 13.50.030 - 5 Version 09.01.23 Fee/Charge Reference 2021 2022 2023 2024 2025 2026 Outside City limits: 3/4 – 10-inch meter 90% surcharge 13.25.020 Front footage (per foot): Residential: In and out City limits $20.00 13.45.020 Commercial: In and out City limits $25.00 13.45.020 Square Footage (per sq. ft.): Residential: In and out City limits $0.0388 13.45.020 Commercial: In and out City limits $0.0426 13.45.020 Water rights acquisition fee – per acre foot $1,725.00$4,150.00 13.45.060(2) 21.05.120(2) Base water rights acquisition fee – per residential unit ($1,725.00$4,150.00 per acre foot x potable use factor .30) $517.50$1,245.00 13.15.030(1) Potable water irrigation fee (no irrigation water available) Equal to 50% of the area of the lot or parcel to be served expressed in acres or portion of acres x 3.5-acre feet of water x $1,725.00$4,150.00 (per acre foot) 13.15.030(1) Water rights transfer fee $1,000.00 13.15.030(5) [Ord. 4561 § 1, 2021; Ord. 4406 § 2, 2018; Ord. 4252, 2015; Ord. 4160, 2014; Ord. 4139, 2014; Ord. 3961, 2010; Ord. 3827, 2007; Ord. 3693 § 1, 2004; Ord. 3655, 2004; Ord. 3610, 2003; Ord. 3575, 2002; Ord. 3553, 2002; Ord. 3543, 2002; Code 1970 § 3.07.160.] Ordinance – Amending PMC 3.35.160, 13.45.060 & 13.50.030 - 6 Version 09.01.23 Section 2. That Section 13.15.030 entitled “Connection Outside City Limits – Water Rights” of the Pasco Municipal Code shall be and hereby is amended and shall read as follows: 13.15.030 Connection Within or Outside City Limits – Water Rights Any application for a new water service connection to serve real property located within or outside the City limits of the City of Pasco, except for those properties for which water rights, or payment in lieu of water rights, have been received by the City pursuant to PMC 13.45.060, shall be conditioned upon the transfer to the City of water rights associated with the property; or, if such water rights are not available or are inadequate to meet the water needs of the property to be served, upon payment to the City of a water rights acquisition fee in lieu of transfer, determined as follows: (1) Amount of Water Rights or Payment in Lieu. The amount of transferred water rights or the fee in lieu of transfer pursuant to this section and PMC 13.45.060 shall be sufficient to serve the number of residential units supplied by the connection for in-house domestic water service and irrigation water service sufficient to cover 50 percent of the lot or parcel of real property to be served by the water connection. If the property to be served by City water service had a certificate, permit, application, or claim to a water right for withdrawal of ground or surface waters, or such other water rights as may be appurtenant to such property, including well water rights, within ten years prior to submittal to the City of a development proposal or application for City water services, and the water rights are no longer available for transfer to the City, a 50% surcharge shall be added to the water rights acquisition fee. (a) Irrigation Water Service Available. If the property to be served by the City is located within and served by the Franklin County Irrigation District, or other public or private irrigation provider acceptable to the City for landscaping irrigation purposes, the property shall continue to be served by the District or other irrigation provider and the applicant for water service shall only be required to transfer three-tenths acre-foot of water rights per residential unit or its equivalent, or provide a payment in lieu for said quantity as directed by subsection (3) of this section. (b) Irrigation Water Service Unavailable. If the property to be served by the City is not included within or served by the Franklin County Irrigation District or other public or private irrigation water provider acceptable to the City for landscaping irrigation purposes, the applicant for water service shall be required to transfer three -tenths acre-foot of water rights per residential unit or its equivalent and in addition, three and one-half acre-feet per year per acre of irrigable land or fraction thereof, or provide a payment in lieu for said quantity as provided in PMC 3.35.160. The requirement relating to irrigable land cannot be waived on the basis that the current owner or developer does not plan to irrigate said land. Ordinance – Amending PMC 3.35.160, 13.45.060 & 13.50.030 - 7 Version 09.01.23 Section 3. That Section 13.45.060 entitled “Assignment of water rights – Extension of City water services beyond City limits” of the Pasco Municipal Code shall be and hereby is amended and shall read as follows: 13.45.060 Assignment of water rights – Extension Provision of City water services within and beyond City limit. (1) As a condition for the extension of a City water main provision of City water service within or beyond the City limits as a primary source of City water for potable or irrigation uses within a residential subdivision or other development, any property owner or developer of such property shall assign and transfer to the City any certificate, permit, application, or claim to a water rights for the withdrawal of ground or surface waters, or such other water rights as may be appurtenant to such property, including exempt well water rights in the quantity and manner set forth in PMC 13.15.030. This assignment and transfer shall not apply to individual service wells asthat are exempt from certification under the laws of the State of Washington, or properties which receive sufficient irrigation water services provided under a perfected water right from a City-approved irrigation water service provider. (2) In the event there are no water rights represented either by perfected application, certificate, permit, application, or right for withdrawal appurtenant to the real property benefited in subsection (1) of this section, the property owner or developer shall pay to the City, in lieu thereof, a water rights acquisition fee as established in the City Fee Summary Ordinance, Chapter 3.35 PMC; or upon appropriate notice recorded with the real property subject to development, defer payment in lieu to the time of application for connection of the new water service serving real property as provided by PMC 13.15.030. This water rights acquisition fee shall be in addition to any other water rates or charges as established in the City fee summary ordinance, Chapter 3.35 PMC. (3) Excess Water Rights. To the extent the water rights associated with the subject property exceed the anticipated water requirement for the subject property, the City, in its sole discretion, may require the owners of the subject property to transfer any amount of excess water rights to the City, and the City shall pay the owners of the excess water rights transferred to the City an amount representing the market value of the excess water as determined pursuant to PMC 13.15.030(3), subject to the right of administrative appeal as provided in PMC 1.30.030. [Ord. 4160, 2014; Ord, 3795, 2006; Ord. 3547 § 1, 2002; Code 1970 § 13.36.070.] Section 3. Severability. If any section, subsection, sentence, clause, phrase or word of this Ordinance should be held to the invalid or unconstitutional by a court of competent jurisdiction, such invalidity or unconstitutionality thereof shall not affect the validity or constitutionality of any other section, subsection, sentence, clause phrase or word of this Ordinance. Ordinance – Amending PMC 3.35.160, 13.45.060 & 13.50.030 - 8 Version 09.01.23 Section 4. Corrections. Upon approval by the city attorney, the city clerk or the code reviser are authorized to make necessary corrections to this Ordinance, including scrivener’s errors or clerical mistakes; reference to other local, state, or federal laws, rules, or regulations; or numbering or referencing of ordinances or their sections and subsections. Section 5. Effective Date. This Ordinance shall take full force and effect five (5) days after approval, passage and publication as required by law. PASSED by the City Council of the City of Pasco, Washington, on this 27th day of November, 2023. _____________________________ Pete Serrano Mayor ATTEST: APPROVED AS TO FORM: _____________________________ _______________________________ Debra Barham, CMC Kerr Ferguson Law, PLLC City Clerk City Attorneys Published: December 3, 2023