Coachella Municipal Code Art. VII Capital Facilities Expansion Fee and Fund

The city council hereby declares that the fees required to be paid by this article are solely for the purpose of producing revenue. The continued increase in housing in the city, with the attendant increase in water, has created an urgent need to provide the necessary water facilities and the financing thereof.

(Ord. No. 1057, § 3(Exh. C), 10-23-13)

A. In addition to any other fees prescribed by this code, water facilities expansion fees shall be payable to the city for all new dwelling units and mobile home or trailer spaces which will make use of the water facilities of the city.

B. Every person constructing a dwelling in a different location or providing a new dwelling unit in a one-family or multi-family dwelling, dwelling group, apartment hotel or mobile home or trailer providing trailer spaces in a mobile home or trailer park, shall pay a water facilities expansion fee in an amount established by city council or authority. Every person constructing a nonresidential, industrial or commercial building, moving an industrial or commercial building to a different location, providing a new industrial or commercial facility shall pay a water facilities expansion fee in an amount established by ordinance of the city council or authority. The water facilities expansion fee shall be paid prior to the issuance of the building permit for the subject unit or space.

C. The water expansion fee will be determined based on the fee in effect at the time of building or water service permit issuance for the expanding development.

(Ord. No. 1057, § 3(Exh. C), 10-23-13)

It is the policy of the city council that the water service be operated as a utility, and that it shall be operated in a prudent manner with adequate reserves to meet emergencies, to replace and to upgrade parts of the system as needed.

(Ord. No. 1057, § 3(Exh. C), 10-23-13)

The following water funds are to be created and maintained:

1. Maintenance and operating fund. The water maintenance and operating fund is to be created and maintained for the purpose of paying for the expenses associated with the maintenance and operation of the water system. Such expenses are to include direct water treatment, distribution, and pumping costs, direct accounting and billing costs, and direct preventative and emergency water storage, pumping, treatment, and distribution system maintenance costs, as well as general and departmental overhead as defined in Section 13.01.010. The source of the money for this fund is to be water permit fees, interest earnings and water service charges. Refundable water deposits provided by property owners are accounted for within this fund, and the amount of such deposits shall not be reflected in the fund balance.

2. Water replacement fund. The water replacement fund is to be created and maintained for the purpose of paying for replacing and upgrading parts of the water system as they wear out, deteriorate or become obsolete. All items deemed to be replacement of existing facilities shall be paid for from this fund. The source of the money for this fund is to be through city council authorized transfers from the water maintenance and operating fund. Such transfers are to be authorized so that funds will be available to pay for future replacement of parts of the water system. The determination as to the amount of money to be held in this fund will be made by taking into consideration the estimated life and replacement cost of the various parts of the sewer system using the following formula:

The summation of the following:

(Replacement cost of water system facility additions) X (0.10) X (Age of water system facilities) ° (75 years)

3. Water capital fund. The water capital fund is to be created and maintained for the purpose of paying for new water facilities found necessary because of the development of the city. Such facilities could include, but are not limited to, pumping stations, water tanks, wells, treatment plants, imported water, transmission mains, meters, distribution system, booster stations, and any necessary equipment. An annual appropriation shall be made from this fund for general and department overhead. The source of the money for this fund is to be water connection charges, interest earnings, water installation charges, property assessments, and government grants.

4. Water facilities expansion fund. The water facilities expansion fund is to be created and maintained for the purpose of paying for water facilities needed for the expansion of the city including, but not limited to, wells, treatment plants, booster stations, transmission mains, imported water, and other necessary appurtenances to properly expand the city's water system. The source of the money for this fund is to be the water facilities expansion fee collected pursuant to section 13.03.271.

(Ord. No. 1057, § 3(Exh. C), 10-23-13)

Appropriations from the various funds provided for in this article shall be pursuant to authorization in the annual budget or by special action of the city council.

(Ord. No. 1057, § 3(Exh. C), 10-23-13)

Moneys in the water funds may be commingled with moneys in other funds for cash management and interest earnings purposes, but each water fund shall be credited with its pro rata share of all interest earnings based on the fund's average balance.

(Ord. No. 1057, § 3(Exh. C), 10-23-13)

Loans between water funds or to other funds may only be made pursuant to authorization of the city council and shall be for a specific time period. During such time that moneys are on loan from any fund, interest shall be paid annually to the fund. The interest rate during this loan period shall be at least the average rate for the city's interest-bearing deposits during the loan duration. No loans shall be made from the maintenance and operating fund and the water replacement fund. Existing loans shall be brought into compliance with this section within five years.

(Ord. No. 1057, § 3(Exh. C), 10-23-13)

A. Personnel. The total number of employees in the water maintenance and operating budget shall be determined using the following formula:

(Total number actual hours proposed to be charged to the water maintenance and operating fund for permanent employees for the proposed operating budget) ° (2,080 hours)

Personnel costs will be charged on actual number of hours worked. Personnel costs include salaries and related benefits.

B. Equipment. The original purchase cost charged to the water capital fund shall be no more than its pro rata share of time used in water activities. The motor pool rental charges shall also be based on the actual hours used; the motor pool shall be responsible for the replacement of these capital items.

(Ord. No. 1057, § 3(Exh. C), 10-23-13)