Loading...
HomeMy WebLinkAboutOrd 622-2013 Amending Pro Rata Changes OrdinanceCITY OF ANNA, TEXAS 101NI]Ik/111L� ► • AN ORDINANCE OF THE CITY OF ANNA, TEXAS, AMENDING THE ANNA CITY CODE OF ORDINANCES BY AMENDING PART III -A (SUBDIVISION REGULATIONS), ARTICLE 3 (SUBDIVISION DESIGN STANDARDS), SECTION 12 (EXTENSION OF SERVICE OF UTILITIES AND PRO RATA AGREEMENTS); PROVIDING FOR A PENALTY FOR ANY VIOLATION OF THIS ORDINANCE NOT TO EXCEED $2000; PROVIDING FOR SAVINGS, SEVERABILITY, AND REPEALING CLAUSES; PROVIDING FOR AN EFFECTIVE DATE; AND PROVIDING FOR THE PUBLICATION OF THE CAPTION HEREOF. WHEREAS, the City of Anna, Texas City Council ("City Council") has previously adopted standards, requirements, and procedures for and otherwise governing subdivisions that are codified in Part III -A of The Anna City Code of Ordinances ("Anna Code"); and WHEREAS, the City Council has investigated and determined that it would be beneficial and advantageous to provide for revised and additional standards, requirements, and procedures related to extension of service and pro rata fees; and WHEREAS, the City of Anna, Texas City Council (the "City Council") has investigated and determined that it would be advantageous and beneficial to the City and its citizens to amend Part III -A (Subdivision Regulations), Article 3 (Subdivision Design Standards), Section 12 (Extension of Service of Utilities and Pro Rata Agreements) by clarifying certain definitions and provisions related to standard sizes and oversizing of water and wastewater lines and associated facilities. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF ANNA, TEXAS, THAT: Section 1. Recitals Incorporated. The above -referenced recitals are incorporated herein as if set forth in full for all purposes. Section 2. Amendment. In accordance with Part II, Article 1, Section 9 of the Anna City Code of Ordinances, Part III -A (Subdivision Regulations), Article 3 (Subdivision Design Standards), Section 12 (Extension of Service of Utilities and Pro Rata Agreements) is amended as set forth in the document attached to this ordinance as Exhibit A, said Exhibit A being incorporated herein by reference as if set forth in full, including without limitation the penalties set forth therein. Section 3. Penalty. ORD. 622-2013 Amending Ord. Governing Pro -Rata Changes Page 1 of 2 06-11-13 Any violation of any of the terms of this ordinance, whether denominated in this ordinance as unlawful or not, shall be deemed a misdemeanor. Any person convicted of any such violation shall be fined in an amount not to exceed $2000 for each incidence of violation. Each violation is considered a separate offense and will be punished separately. Section 4. Savings, Severability and Repealing Clauses. All ordinances of the City in conflict with the provisions of this ordinance are repealed to the extent of that conflict. If any provision of this ordinance shall be held to be invalid or unconstitutional, the remainder of such ordinance shall continue in full force and effect the same as if such invalid or unconstitutional provision had never been a part hereof. The City declares that it would have passed this ordinance, and each section, subsection, clause, or phrase thereof irrespective of the fact that any one or more sections, subsections, sentences, clauses, and phrases be declared unconstitutional or invalid. Section 5. Publication of the Caption Hereof and Effective Date. This ordinance shall be in full force and effective from and after its passage and upon the posting and/or publication, if required by law, of its caption and the City Secretary is hereby directed to implement such posting and/or publication. PASSED by the City Council of the City of Anna, Texas, this 11th day of June, 2013. ATTESTED: Y 1 1Y.Zzm� City, ecretary, Natha Wilkison 4`0l��� a APPROVED: Mayor, Mike Crist niincijrj'/ 4l IT ,� `////�i �Z X P` III 11111\N ORD. 622-2013 Amending Ord. Governing Pro -Rata Changes Page 2 of 2 06-11-13 EXHIBIT "" Section 12. Extension of Service of Utilities and Pro Rata Agreements 12.01 Definitions For the purposes of this Section 12, the following definitions shall apply unless the context clearly indicates or requires a different meaning: Associated Facility. An apparatus or improvement that is used in conjunction with a water or wastewater line that provides water or wastewater service to a tract of land, regardless of where the associated facility is located. The term includes but is not limited to a lift station, a force main, a pump station, a storage tank, or an addition to an existing facility that increases the capability of the existing facility to provide water or wastewater service. Developer. The person, business, corporation or association responsible for the development of a lot, parcel or tract, and includes the property owner or subdivider. Oversize or Oversizing. With reference to a water or wastewater line or an associated facility, means an increase in the size or capacity of the line or associated facility above the mmim standard size-e-r-eapaGiW, including fire flow requirements, that is necessary to provide complete utility service to a particular development. With resgect to a associated facili "oversize" or °oversizing" means the side crracit in exs of the size or cgTaSAy hat would ntherwie be necesitted by the articular dpvelo t a d termined b, the pity en ineer. Pro Rata Fee. A charge made against a lot, tract or parcel for the purpose of reimbursing the City or a developer a proportionate share of the service extension costs for extending a water or wastewater line and associated facilities that serves the property against which the charge is made. Service Extension. A water or wastewater line or an associated facility that is necessary to extend water or wastewater service from a major City transmission main or collection main to a tract of land and across the tract or frontage of the tract to a point determined by the City engineer to be consistent with further service extensions of the City, provided that the extension does not extend beyond the property boundaries of the tract. Service Extension Application. A request in writing to the City for extension of water or wastewater service to a development. Service Extension Costs. The total costs of any off-site service extension, as initially determined by the City's engineer, including but not limited to costs of land/easement acquisition, design and construction costs, and any permitting or administrative fees required for such extension, but not including amounts expended solely for oversizing. Service Extension Contract. A legal document that defines the responsibilities and requirements of the entity requesting a service extension and the City with regard to the service extension. A service extension contract may be required at the sole discretion of the City. Standard Size. " z ith respect to q water or wastewater line, €he standard size means aneight-inch cliarneter line. With res get to ars _associated facili wthg standaro size is tht �iL or ca ity needed to serve a particular development as determined by the City gnqjnieer*m4iFoe4G-9-,%e. Water or Wastewater Line. A necessary appurtenance to a water distribution or wastewater collection system. The term includes a valve, manhole, connection, air release, diversion, and other equipment necessary to make the water distribution or wastewater collection system operable in compliance with the design criteria and standards of the City. 12.02 Responsibilities of Developer; Application (a) The developer shall extend all water and wastewater lines and associated facilities needed to connect the development or land use with the City's approved water distribution system and wastewater collection system. The developer shall further extend all lines across the property currently being developed or to the point on such property from which such lines will be extended to serve adjoining land as determined by the City. As a condition of acceptance of water or wastewater lines, the City may require conveyance of an easement across the property currently being developed as well as other contiguous property owned by the developer for purposes of future extension of the water or wastewater lines. All initial service extension costs and all initial costs of oversizing, shall be borne by the developer or property owner, subject to reimbursement from proceeds of pro rata fees or cost participation pursuant to Sections 12.10 and 12.11. Requests for extension of water and wastewater lines shall be as provided for in this Section 12. (b) A service extension application is required to: (1) Connect a tract of land to the existing City system; or (2) Provide utility service to a tract of land if an existing line or associated facility is unsuitable or insufficient to provide service to the tract. (c) A developer or property owner must submit an application for a service extension to the City engineer. (d) An application for a service extension must: (1) Include a general description of the location, size, and capacity of the service extension; and (2) If within the City's ETJ, be accompanied by an irrevocable petition to the City for voluntary annexation at such time and under such conditions as deemed appropriate by the City. (e) If either water or wastewater service is to be provided by an entity other than the City, the application must be accompanied by evidence of a commitment from the other entity to provide the other required service. The evidence must be in the form of: (1) A contract with the entity; (2) A letter from the entity; or (3) The minutes of the relevant meeting of the governing body of the entity. 12.03 Administrative Approval (a) The City manager may approve an application or contract for a service extension if: (1) The requested service extension does not include a request for establishment of pro rata fees or cost participation by the City; and (2) The City Manager determines that sufficient capacity exists or will be available to meet the projected demands of the development or land use to be served. (b) If a requested service extension includes a request for establishment of pro rata fees or cost participation by the City, or if the City manager does not determine that sufficient capacity exists or will exist, the application must be processed under Sections 12.12 and 12.13 and requires a service extension contract. 12.04 Construction Standards; Submission of Construction Plans (a) After a service extension application or service extension contract has been approved, an applicant must submit the construction plans for needed improvements to the City engineer for review and approval of the size, capacity, and routing of the improvements. (b) The City engineer may approve the size, capacity, or routing of an improvement only if it complies with generally accepted engineering practices and each applicable City requirement. (c) Water and wastewater lines shall be oversized where needed to provide capacity to other existing or new developments in the area to be served in order to avoid duplication of facilities, in conformity with the City's generally accepted engineering practices. (d) The location and size of all water and wastewater lines necessary to serve land to be developed shall be in accordance with the City's generally accepted engineering practices and in accordance with the City's subdivision regulations. (e) When an existing water or wastewater line provides service to a proposed development, the developer shall pay all applicable pro rata fees pursuant to Section 12.13 or 12.15 for the water line or wastewater line before extension of or connection to such main is made. 12.05 Submission of Additional Information An applicant for a service extension shall provide information determined by the City engineer to be necessary to demonstrate that construction of the service extension complies with the requirements of the City. 12.06 Expiration of Approval (a) Unless extended under subsection (b) or (c), the approval of a service extension application remains valid until the latest of: (1) The date on which the preliminary plat expires for the property to be served by the service extension; or (2) The second anniversary of the date on which the service extension application was approved, if on or before that date: (i) A preliminary plat for the property to be served has not been approved; and (ii) Construction of the service extension has not begun; or (3) The date established in the service extension contract. (b) If construction of a service extension begins before the approval expires under subsection (a), the City manager may extend the approval of a service extension for the period of time estimated to be necessary to complete construction of the service extension. (c) Under this section, if the approval of a service extension requires a service extension contract: (1) Construction of the service extension shall not begin until fiscal security is posted or money is deposited in compliance with section 12.07; and (2) The service extension approval is extended until construction of the service extension is complete and the City accepts the lines and associated facilities constructed under the contract. 12.07 Fiscal Security (a) For construction contracts administered by the City, fiscal security in an amount approved by the City engineer to be equal to 100% of the estimated service extension costs and 100% of the costs of any oversizing, must be deposited in cash with the City prior to entering into a construction contract. (b) For construction contracts administered by a party other than the City, the fiscal security must be posted prior to the execution of a construction contract and must be in the form of: (1) An irrevocable letter of credit that has a minimum term of three years and is acceptable to the City; (2) A performance bond; or (3) A cash deposit. 12.08 Hardship Policy for Extension to Single Dwelling Unit (a) The City may, at its expense and in its sole discretion, upon written request of a property owner, extend a water or wastewater line of a size determined by the City to serve a single dwelling unit if funds are available to pay the cost of installing the line and the extension meets the standards in subsection (b). (b) The person requesting the extension must demonstrate that: (1) A substantial hardship would result if the extension is not made; (2) Denial of the extension would result in potential water quality degradation; and (3) The extension is necessary to provide like benefits as normaliv provided to similarly served property. (c) The City may require that the property owner making the request share in the service extension costs, and that the property owner grant all necessary easements to continue line extensions to serve adjoining land. (d) This policy has no application to circumstances in which multiple connections are requested or necessary to serve existing or proposed development, or in which the City determines to initiate construction of a water or wastewater line or associated facility that serves multiple users. This policy may not be invoked to finance serial connections to lots in an existing subdivision. 12.09 Eligibility for Pro Rata Fees A developer that agrees to construct a water or wastewater line or an associated facility that on acceptance will become part of the City's water and wastewater system and which supplies capacity to other existing or new developments, and that is not a facility or a portion of a facility included on the capital improvements plan for water or wastewater facilities, may apply to the City to establish pro rata fees to be paid by other users of the facilities and to reimburse the developer a proportional amount of the service extension costs . The developer also may apply for cost participation by the City for the costs of oversizing water or wastewater lines or associated facilities in excess of Gne-the standard siz n4h i f-equtred-W--sep&--the-developrAer4t. 12.10 Calculation of Pro Rata Fees (a) The amount of the cost reimbursement for an extension, if any, shall be computed as the off-site length of a water or wastewater line that has been extended by a developer multiplied by the then -current average cost, per linear foot, of the service extension costs, as determined by the City engineer. The amount of the pro rata fee based upon such computation shall be established for each side of the line to which connections are to be made. For mains that can be connected to from both sides, the fee for each side shall be equivalent to 1/2 of the average linear foot cost referenced above, multiplied by the length of the water or wastewater line on or abutting the property being charged. For mains that can be connected to from one side only, the fee shall be equivalent to the average linear foot cost referenced above, multiplied by the length of the line on or abutting the property being charged. (b) In the alternative, the developer may apply for a different cost reimbursement formula, based upon engineering cost estimates of the service extension costs agreed upon in writing by the City manager and the applicant, and verified in a study provided by the applicant approved by the City engineer. The study shall aggregate the costs of associated improvements where feasible. The City may establish guidelines for eligible costs to administer the policy in this section. The amount of the pro rata fee shall be that calculated in the approved study. The study shall contain the following minimum elements: (1) Identification of the area and all properties to be served by the water or wastewater lines or associated facilities to be installed; (2) Identification of the costs of the facilities to be installed; (3) Apportionment of the costs of the facilities to be installed among lots, tracts or parcels to be served by the improvements, based upon capacity to be utilized by such properties, using accepted engineering standards and practices; (4) Calculation of the maximum amount of the costs which are to be reimbursed to the developer or property owner, net of costs attributable to the developer's or property owner's utilization of capacity of the lines or associated facilities; and (5) Calculation of a pro rata fee to be charged per unit of land that is to be connected to the water or wastewater lines or associated facilities. (c) In making the initial determination of appropriate pro rata fees under subsections (a) or (b), above, the City engineer shall certify in writing that the amount of the pro rata fee is roughly proportionate to the impact that the properties to be charged will have on the City's water and wastewater utility system. (d) After construction of off-site improvements by a developer that are subject to reimbursement from pro rata fees, but before the City's acceptance of such improvements, the City engineer may request, and the developer shall be required to promptly supply, verifiable proof of the actual costs expended as to all such off-site improvements. If the actual costs to complete such improvements—including but not limited to costs of land/easement acquisition, design and construction costs, and any permitting or administrative fees required for such extension, but not including amounts expended solely for oversizing—are less than the City engineer's initial determination of the service extension costs under subsection (a) or (b), above, then the amount of pro rata fees as relates to those improvements shall be decreased to correspond to said actual costs. 12.11 Cost Participation for Oversized Lines The City may participate in the reasonable construction costs of oversizing water or wastewater lines that exceed the standard size of a water or wastewater line, and/or associated facilities. The developer initially shall be responsible for the entire cost of the oversized facilities. City oversize participation shall be in accordance with this section and any applicable provisions of the City's subdivision or other regulations. The City in its sole discretion shall determine the amount of any cost participation based on engineering estimates of the costs attributable to the increase in the size of lines exceeding the standard size, taking into consideration the degree to which the need for such oversizing is created by the development for which service extension is being requested. In no event may the City be required to participate in the costs of oversize facilities pursuant to this section if there are no funds available for such purposes. 12.12 Contract Required (a) The applicant for approval of a service extension must request the establishment of pro rata fees or cost participation in writing at the time the applicant applies to the City manager for approval of the service extension. If the applicant for approval of a service extension requests establishment of pro rata fees or cost participation, a written service extension contract is required. (b) The service extension contract shall include at a minimum the pro rata fee and cost participation, if any, approved by the City, the duration of the right to collect pro rata fees, and provisions for forfeiture of such fees to the City in the event they are not collected by the contracting party, his or her successor -in -interest, or assignee. (c) An executed service extension contract may be assigned by the party requesting service extension with the written consent of the City, which shall not be unreasonably withheld. 12.13 Review and Approval; Collection of Pro Rata Fees (a) The City manager shall review each request for cost reimbursement from pro rata fees or cost participation for oversizing lines. (b) The City manager shall formulate his or her recommendation concerning the cost reimbursement from pro rata fees or cost participation for oversizing lines, which shall address each of the following minimum criteria: (1) The line to be extended has not been included on the impact fee capital improvements plan for that category of capital improvement; (2) The size of each proposed line or facility complies with the generally accepted engineering practices and other planning criteria of the City and final design and routing will comply with the technical standards; (3) Any alternative study proposing pro rata fees fairly apportions the extension costs among prospective users of the facilities to be installed; (4) The proposed line or facility is a reasonable extension or addition to the water and wastewater utility system; and (5) Funds for participation in the costs of oversizing lines are available from an identified source of funds or funds will be available to meet the proposed payment schedule. (c) The City manager shall forward his recommendation on pro rata fees and cost participation, together with the proposed service extension contract, for decision by the City council. (d) Upon approval of the request for reimbursement from pro rata fees, any developer or user of property with frontage along the off-site portion of the water or wastewater line or of property that is identified in the approved fee study thereafter that connects to or utilizes the capacity of the water or wastewater line or associated facility for which a pro rata fee has been established shall pay the applicable fee. Pro rata fees shall be collected by the City from the developer or user before approval of the engineering plans for the development required to pay the fee, or before connection to the water or wastewater line for which the fee has been established, whichever first occurs. 12.14 Conditions (a) A developer constructing a water or wastewater line or an associated facility that is eligible for cost reimbursement from pro rata fees or cost participation for oversizing may not receive cost reimbursement payment for the line or facility unless the entity complies with each requirement or regulation of the City relating to: (1) The public advertising of the line or facility; (2) The bidding on the line or facility; (3) A performance or payment bond for the line or facility; and (4) A warranty on the line or facility. (b) The developer constructing the line or facility is not entitled to receive a cost reimbursement payment from pro rata fee proceeds or cost participation for oversizing lines until the entity submits documentation showing the entity's compliance with each requirement described by subsection (a) and the line or facility is accepted in writing by the City. 12.15 Payments to Developer (a) For projects subject to a service extension contract approved by the City by April 1 of any year, the City shall pay the developer holding the extension contract any eligible cost reimbursement for oversizing, without interest, within 60 days of completion and acceptance of the project by the City, but no earlier than the following September 1. (b) For projects for which a service extension contract is approved by the City after April 1 of any year, the City shall pay the developer holding the extension contract any eligible cost reimbursement for oversizing, without interest, for a completed and accepted project within 60 days of completion and acceptance of the project by the City but no earlier than September 1 of the next calendar year. (c) For a period of 15 years following the City's acceptance of the water line, wastewater line, or associated facility, the developer shall be entitled to reimbursement from the proceeds of the pro rata fees established pursuant to this Section 12, up to the maximum amount of the reimbursement established in the approved extension contract. The City may deduct 2% of the amount of pro rata fees collected from the amount of the fees reimbursed to the developer as an administration fee. (d) Pro rata fees which have been collected pursuant to the service extension contract shall be paid to the developer annually no later than October 1 of each year, until the term of the agreement expires. (e) The City may establish one or more pro rata fee accounts for purposes of administering the policies of this Code. The City shall deposit all pro rata fees collected pursuant to this article into such account(s). Expenditures from such accounts shall be earmarked solely for reimbursement of developers for the installation of water lines or wastewater lines or associated facilities for which pro rata fees have been established pursuant to this article. (f) It shall be the responsibility of the service extension contract holder or his assignee to provide to the City in writing current contact information. The City will mail reimbursement payments to the last contact of record reflected on its books. In the event that the service extension contract holder or his assignee has not collected pro rata payments or cost participation in oversize lines sent to the contact of record for a period of one year from the date such payments are due pursuant to this section, such accrued amounts shall become the funds of the City for purposes of expenditure on cost participation for oversizing lines or other system improvements in the City's sole discretion. 12.16 Pro Rata Fees for City Projects (a) The City may initiate capital projects from time to time involving construction of water or wastewater lines or associated facilities, and may seek to recoup its costs through establishment of pro rata fees. (b) Prior to establishing fees, the City shall either compute fees based upon a per average linear foot formula similar to the formula described in Section 12.10(a) or pursuant to a study that satisfies the requirements of Section 12.10(b). The City council shall establish pro rata fees based upon the front footage formula or alternative study. (c) Following establishment of pro rata fees by the City council, the developer or user of property with property frontage on the extended water or wastewater line or of property that was identified in the approved pro rata fee study thereafter that connects to or utilizes the capacity of the water or wastewater line or associated facility for which a pro rata fee has been established shall pay the applicable fee. Pro rata fees shall be collected by the City from the developer or user before approval of the engineering plans for the development required to pay the fee, or before connection to the water or wastewater line for which the fee has been established, whichever first occurs. (d) Pro rata fees established under this section may be collected for a period of 15 years following final construction by the City of the water line, wastewater line, or associated facility.