Milpitas Municipal Code Art. VII Fees

Each connector shall pay a fee to City for the issuing of each permit, for the inspection of each house lateral, house sewer or side sewer, the sum of Five Dollars ($5.00). Where connector has on file with the City cash deposit for inspection of work, no inspection fee shall be required. In such case, all cost and expenses incurred by City in inspection of the connection shall be made from said deposit.

Before the issuance of a permit for the installation of a house lateral, connector shall pay City a fee which shall include the following:

A. An engineering charge to defray the cost of processing the permit application, which shall be an amount equal to forty cents ($.40) times one-half the width of the street expressed in feet in which the house lateral is being constructed.

B. A short side charge shall be collected in all cases where the main or trunk to which connection is being made is located between the center line of the street and the property to be served. Said short side charge shall be an amount equal to four dollars and fifty cents ($4.50) times the distance in feet between the center line of the street and the main or trunk sewer to which the connection is being made. The purpose of this charge is to equalize connection cost for property on both sides of the street, and it may be disbursed as per Section 7.03 below.

In the event a house lateral is to be connected to a main or trunk sewer located within an easement, the house lateral fee shall be as determined by the City Council.

(Ord. 208 (part), 6/17/80)

The City Council may disburse to connectors whose house laterals connect to a main or trunk sewer at a point beyond the center line of the street an amount equal to $4.50 times the distance in feet between the center of the street and the main or trunk sewer to which said connection was made.

(Ord. 208 (part), 6/17/80)

Before the issuance of a permit to connect to a house lateral, main sewer or trunk sewer Connector shall pay City a fee prepared in accordance with State Water Resources Control Board "Revenue Program Guidelines for Wastewater Agencies" and in accordance with the following schedule:

A. RESIDENTIAL

1. For each separately owned single family dwelling or for each single family dwelling of two dwellings per structure, a fee of $880.

2. For each unit of an apartment house, multi-family structure of greater than two units per structure, or for each separately owned single family dwelling of three or more dwellings per structure, a fee of $690 per unit.

3. For each unit or space of a mobile home park a fee of $440 per unit or space.

B. COMMERCIAL, INDUSTRIAL AND INSTITUTIONAL

1. For each commercial, industrial or institutional connection having an estimated consecutive peak five day dry weather sewage discharge less than 5000 gallons per day, a fee based upon the type of use and rate from Table 1 below. The fee shall be computed by multiplying the rate from Table 1 times the estimated peak five day discharge in hundred cubic feet per day or fraction thereof.

Table 1

The peak five day discharge shall be established by the City Engineer. The Connector may submit data on peak discharge for review and use in the final determination by the City.

(Ord. 208.16, 6/4/85)

Section 7.04-B

2. For each commercial, industrial or institutional connection having a consecutive peak five day dry weather sewage discharge of 5000 gallons per day or larger, the fee shall be based upon the following:

a. $2,293,957 times each million gallons or fraction thereof of peak five day dry weather sewage discharged, plus

b. $245,251 times each one thousand pounds or fraction thereof per day of biochemical oxygen demand removal capacity required during the peak five day dry weather discharge, plus

c. $134,098 times each one thousand pounds or fraction thereof per day of suspended solids removal capacity required during the peak five day dry weather discharge, plus

d. $1,263,254 times each one thousand pounds or fraction thereof per day of ammonia removal capacity required during the peak five day dry weather discharge.

The removal capacity stated above shall be that capacity required by the particular loading parameter at the San Jose/Santa Clara Water Pollution Control Plant.

The City shall be responsible for estimating the discharge and loading parameters to be used for establishing the Treatment Plant Fee. The Connector may submit sewage discharge and loading data estimated for the development as a basis for the fee, subject to the review and approval of the City.

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a. The Treatment Plant Fee shall be based upon the actual recorded values of flow during the first twelve months of full operation. Upon issuance of a Building Permit (or other authorization for water or sewage service), the Connector shall pay to City an initial sum to be credited to the Treatment Plant Fee due. The initial sum shall be computed based on the City Engineer's estimate of the Treatment Plant Fee.

b. Whenever the Engineer's estimate of the Treatment Plant Fee exceeds Fourteen Thousand Dollars ($14,000.00), the Connector may elect to pay in full or to pay in installments as follows: Fifty percent of the fee shall be paid at the issuance of the Building Permit (or other authorization for water or sewage service), and the remaining fifty percent in five equal annual installments together with interest. Interest shall be computed at the rate of 10% per annum on the unpaid balance, and accrued interest shall be paid at the same time and in addition to each annual installment.

c. In the event that the Treatment Plant Fee shall exceed the Engineer's initial estimate, the amount of said excess shall be due and payable within 30 days upon written demand of City. Provided, however, that, upon application by Connector, City may (but shall not be required to), authorize payment of said excess as follows: sixty percent down and the remaining forty percent in four equal annual installments, together with interest at 10% per annum on the unpaid balance, accrued interest being payable at the same time and in addition to each annual installment.

d. If Connector elects installment payments under Subsection 3.b or 3.c hereunder, Connector shall execute an appropriate contract in a form satisfactory to City Attorney. All installment payments under 3b and 3c shall be subject to the following provision (and any contract or note therefor shall so state): In the event that Connector defaults in the payment of any installment and said installment default is not cured within 30 days of the due date, then, without any notice to Connector, the entire unpaid balance shall become immediately due and payable (together with accrued interest) without regard to maturity date. Without limitation to any remedy authorized by law or by this Chapter, and as an additional remedy, City may seek the recovery of said unpaid balance by suit in a court of competent jurisdiction and, if it prevails, shall be entitled to its costs of court and reasonable attorney fees.

e. Treatment Plant Fees are based on meter readings. If there is a single meter serving more than one individual, company or other entity (as, for example, in the case of one meter serving a building with a number of tenants, all using water), then the Treatment Plant Fee shall be computed with respect to said single meter. The party in whose name the meter is issued and all parties using said water (e.g., landlord and tenants) are liable for both the treatment Plant Fee and for monthly water and sewage charges. Provided, however, the party in whose name the meter is issued shall be primarily responsible to City for payment of Treatment Plant Fee and for monthly water and sewage charges (and the Treatment Plant Fee will be computed on said party's meter readings, regardless of the amount of water used by any other party in connection with said meter). Joint connectors may apply for separate meters and separate accounts. If separate meters are feasible, separate meters will be authorized at the expense of the connector.

f. As used in this Chapter, the term "full operation" shall mean one hundred percent utilization of a facility. "One hundred percent utilization" includes, but is not limited to, such factors as: maximum number of employees, maximum production capacity, maximum number of shifts, maximum utilization of equipment.

C. CHANGES IN USE

If, after the final fee is established an industrial, commercial, or institutional user changes their operation resulting in an increased discharge, then the City shall collect additional Treatment Plant Fees based upon the increased discharge and constituent parameters. This change in operation shall be in effect for a period exceeding one year. The new fee shall be established by computing the fee for the new use based upon B1 or B2 above, and then subtracting from that figure the previously paid fee. There shall be no reduction in fee based upon changes in operation or use resulting from a reduction in discharge or constituent parameters.

D. DISPOSITION OF TREATMENT PLANT FEES

All Treatment Plant Fees collected shall be deposited into the Treatment Plant Construction Fund. Any fees collected shall be used to pay capital improvement or capital operating costs at either the San Jose/Santa Clara Water Pollution Control Plant or within the City.

E. EXCLUSION OF THE TRANSIT AREA SPECIFIC PLAN DEVELOPMENT

The provisions of Sections 7.04(A) through 7.04(D) above shall not apply to Connectors located within the boundary of that planning area identified as within the Transit Area Specific Plan for permits to connect a house lateral, main sewer or trunk sewer issued after November 1, 2008. Fees for such excluded connections are set forth in Title VIII, Chapter 4 — "Fees for New Development" of the Milpitas Municipal Code.

(Ord. 208.43(1), 9/16/08; Ord. 208.17, 8/20/85; Ord. 208.12, 3/20/84; Ord. 208.6, 10/20/81)

Prior to connection to any sewer line of City or issuance of building permit (whichever occurs first), or prior to a change in use that results in an increased average daily waste water flow due to the change in use, connectors or developers shall pay to the City a fee for connection to the City's sewerage system as shown below:

A. $1,908 per single family dwelling unit.

B. $1,406 per dwelling unit at multi-family dwelling developments.

C. $8.52 per gallon per day of estimated average daily wastewater discharge for non-residential sites.

Notwithstanding the foregoing, connectors or developers with projects meeting the following criteria shall be subject to the provisions of this section in effect prior to the effective date of the amendments to this section enacted by Ordinance No. 208.38:

(a) Projects requiring discretionary planning approval with applications that are deemed complete prior to July 15, 2003; and

(b) Projects that do not require discretionary planning approval that receive building permits prior to July 15, 2003.

(Ord. 238.08 (part), 6/3/03)

D. REIMBURSEMENT

1. Intent; Definitions, Authority to Classify: In order to encourage the installation of sewer lines, Milpitas Sanitary District heretofore adopted the procedure of partially reimbursing those persons who install lines (i.e. "installers") for the cost of installation by funds derived from those persons who subsequently connect to the line or develop in the area benefitted by the line. Reimbursement was made pursuant to the provisions of a reimbursement contract, imposing various conditions and limitations on the right to reimbursement.

The holders of said reimbursement contracts are hereafter described as "Class A Installers."

A developer contemplates installing a major trunk sewer line commencing at the City's pump station west of Freeway 17 and ending at Main Street and which will serve a substantial portion of said City. Said installer is hereafter described as "Class B Installer."

It was (and continues to be) contemplated that future sewer lines will be installed serving the remaining portions of City and its sphere of influence. The installers of said lines are collectively referred to as "Class C Installers."

District wished and City now wishes to provide an equitable method of reimbursement for past and future installers so that:

a. The existing rights of Class A Installers are protected within the terms of their existing reimbursement contracts.

b. The Class B Installer will share in reimbursement in a manner and amount to encourage its investment in and construction of a relatively large main line which is necessary for both the development of the Class B Installer's subdivision and for the development of the community.

c. Class C Installers will share in reimbursement in a sufficient amount to encourage the construction of smaller connections (recognizing that if reimbursement to the Class B Installer were to be made strictly in proportion to the cost of the line installed by it, the likely reimbursement to a prospective Class C Installer in any given case might be so small as to discourage the Class C Installer from installing his line).

There are, in addition, certain areas within the City which have been granted a credit for acreage fee; in exchange for other benefits previously conferred upon the District. In the case of developers in LID 2 (as set forth upon the assessment map of said LID 2 filed in the office of the engineer for City) an acreage and front foot credits are due. Said developers will, accordingly, contribute acreage fees of less than $600 per acre. They will, however, be entitled upon development to apply for reimbursement as Class C Installers subject, however, to the provisions of this Chapter. The developer of Phase 2 of Planned Unit Development 8A is also entitled to a credit against future acreage fees in the amount of $42,879.37 in exchange for other benefits conferred on the City. No acreage fees will be collected in connection with the development of Phase 2 of said PUD 8A and no reimbursement will be allowed therefor.

The City Council is hereby empowered to:

d. Determine those geographical areas served by or benefitted by a given sewer line (herein described as "benefit area").

e. Cause a map of a benefit area of a given sewer line to be included in the reimbursement contract between the installer of that line and the City.

f. Establish categories of installers (as hereinabove set forth) and priorities for reimbursement to them so as to reimburse installers in accordance with the objectives and provisions of this Chapter, the provisions of existing reimbursement contracts and such additional conditions as City shall determine to be just and equitable.

g. Enter into contracts with installers to provide for reimbursement in such a manner that installers will be encouraged to construct sewer lines of sufficient capacity to serve other developments besides their own (to the end that the greatest economic, engineering and governmental economy can be achieved and that the unnecessary and expensive duplication of sewer line facilities can be avoided).

h. Make provision for the allocation of funds available for reimbursement in geographical areas where two or more sewer lines are located (and where the benefit areas of said respective sewer lines overlap one another).

2. Priorities of Reimbursement

a. Class A Installers

1. Reimbursement of Funds Derived Solely from Class A Benefit Area

Class A Installers shall receive reimbursement for all acreage fees paid by connectors within the benefit area of said Class A Installer in accordance with existing contracts.

2. Reimbursement If Overlap With Class B Benefit Area

If the benefit area of a Class A Installer shall overlap with the benefit area of the Class B Installer, the Class A Installer shall receive reimbursement for all acreage fees paid by connectors within the benefit area of said Class A Installer (notwithstanding said overlap) and the Class B Installer shall not receive any reimbursement from the area of overlap so long as the Class A Installer's reimbursement contract shall be unexpired. Provided, however, that the Class B Installer shall be entitled to reimbursement of 100% of all acreage fees paid from the Class B benefit area which does not overlap with the Class A or Class C benefit areas.

3. Reimbursement of Class A Installer Subject to Contract

Reimbursement of Class A Installers shall be subject to the covenants and conditions of said Class A Installer's existing reimbursement contract.

4. Assignment of Contract to City

City shall (at the sole discretion and judgment of its Council) be empowered to purchase an assignment of any Class A Installer's reimbursement contract (if the holder of the contract is willing to sell) at an equitable sum. In determining an equitable sum, consideration shall be given to the amount remaining to be reimbursed, the remaining life of the reimbursement contract and the probability of reimbursement. Upon an assignment of said reimbursement contract to City, City shall succeed to all rights of said Class A Installer under said reimbursement contract and this Chapter. The purpose of this authority is to enable City (if its Council wishes) to eliminate City's obligation to the few remaining Class A Installers so as to simplify the administration of the reimbursement program.

b. Class B Installers

1. Reimbursement of Funds Derived Solely from Class B Benefit Area

The Class B Installer shall receive reimbursement of all acreage fees paid by connectors within the benefit area of the Class B Installer in accordance with his reimbursement contract.

2. Reimbursement if Overlap with Class C Benefit Area

If the benefit area of the Class B Installer shall overlap with the benefit area of one or more Class C Installer, the Class B Installer shall receive reimbursement of 60% of all acreage fees paid by connectors within the area of overlap between Class B and Class C benefit areas (and the Class C Installers shall receive 40% as hereafter provided). Provided, however, that the Class B Installer shall be entitled to reimbursement of 100% of all acreage fees paid from the Class B benefit area which does not overlap with the Class A or Class C benefit area.

c. Class C Installer

1. Reimbursement of Funds Derived Solely From Class C Benefit Area

The Class C Installer shall receive reimbursement of all acreage fees paid by connectors in accordance with his reimbursement contract.

2. Reimbursement If Overlap With Class B Benefit Area

If the benefit area of a Class C Installer shall overlap with the benefit area of the Class B Installer, the Class C Installer shall receive reimbursement of forty percent of all acreage fees paid by connectors within the area of overlap between the Class C and the Class B benefit area (and the Class B Installer shall receive 60% as heretofore provided). Provided, however, that the Class C Installer shall be entitled to reimbursement of 100% of all acreage fees paid from the Class C benefit area which does not overlap with any other benefit area.

3. Reimbursement If Overlap With Other Class C Benefit Area

If the benefit area of a Class C Installer shall overlap with the benefit area of one or more other Class C Installers, the respective Class C Installers shall receive reimbursement of all acreage fees paid by connectors within the area or areas of overlap in accordance with the following formula:

4. Reimbursement to Class C Installers After December 1, 1978

Class C Installers who execute a reimbursement agreement after December 1, 1978 shall receive reimbursement of all acreage fees paid by connectors on a priority based upon the date of the reimbursement agreement. The first installer shall receive all reimbursement before the second installer.

Provided, however, that any Class C Installer shall be entitled to reimbursement of 100% of all acreage fees paid from its own benefit area which does not overlap with any other benefit area.

d. Fees Derived from Outside of Benefit Area

Acreage fees derived from any area within City which is outside of an established benefit area shall be deposited to the credit of the Sewer Extension Fund.

e. Priorities Subject to Contract and Ordinance

The provisions relating to the sharing of funds available for reimbursement by any given installer (as herein provided) shall be subject to the remaining provisions of this Chapter and to the covenants and conditions of the applicable reimbursement contract.

3. Disposition of Front Frontage Fees

The installer of a sewer line shall be entitled to all front footage fees collected in the City for said line to the extent that said installer has a balance due on a subsisting reimbursement contract. All front footage fees so collected shall be credited against any unpaid balance due on said contract so long as said contract shall be in full force and effect; thereafter, all front footage fees collected by City in connection with said line shall be paid into the Sewer Extension Fund.

4. Reimbursement Contracts

Any reimbursement contract shall include but shall not be limited to the following provisions:

a. Reimbursement shall be limited to a period of 15 years from the commencement of the contract.

b. Contracts shall not be subject to voluntary or involuntary assignment, sale or transfer without the express written consent of City.

c. No interest shall be paid on any funds received by City to be disbursed pursuant to any reimbursement contract.

It is the intent of this Chapter that City shall be empowered to impose any additional provisions as the City Council, in its sole discretion, determines reasonable, necessary and equitable.

5. Connection Fees From Benefit Area After Reimbursement Contract Has Expired

Connection fees derived from a given benefit area after the reimbursement contract covering said area has expired or terminated shall be the property of City and shall be used for the maintenance or extension of lines anywhere within the City.

6. Interest for Acreage and Front Footage Fees

All interest derived from acreage fees and front footage fees deposited in any bank account pending disbursement shall accrue to the benefit of City.

(Ord. 238.08 (part), 6/3/03)

Only that portion of a parcel of land located within the boundaries of a Special Sewer Assessment District and having frontages on and lying within 200 feet of a sewer line constructed under assessment district proceedings shall be exempted from payment of connection fees established by Section 7.05 of this ordinance.

(Ord. 208 (part), 6/17/80)

A. Fees due and payable by connectors shall be paid prior to the issuance of a connection permit to Connector.

B. Fees due and payable by installers shall be paid prior to the approval of the plans and specifications of the sewage system to be installed by Installer, and the City shall have the right to charge and the Installer shall pay the standard engineering fees charged by City for such work as may be done by City.

(Ord. 208 (part), 6/17/80)

Any permit issued under Section 4.01 of this Chapter shall expire and become null and void unless work pursuant thereto shall be commenced within one year of the date of issuance.

(Ord. 208 (part), 6/17/80)

A new permit may be issued under Section 4.01 of this Chapter for the same authority granted in an expired permit thereunder upon:

A. Payment of the sum of five dollars ($5.00) plus

B. Payment of a sum equal to the difference (if any) in the permit fee at the time of the issuance of the expired permit and at the time of issuance of the new permit.

(Ord. 208 (part), 6/17/80)

Any new permit issued for the same authority granted by an expired permit issued under Section 4.01 shall be subject to (and the permittee shall comply with) all the provisions and conditions of this Chapter enacted and in effect at the time of the issuance of said new permit (including, but not limited to, the provision hereof relating to its expiration after one year) all rules and regulations then applicable and such conditions to the permit as may then be imposed by law.

(Ord. 208 (part), 6/17/80)