§ 4.16.100. Recycled water system capacity fee.

A.

Each developer making written application for recycled water service from the District shall pay a "Recycled Water System Capacity Fee" in an amount determined based on the size and number of meters installed for the Developer's development pursuant to the Recycled Water System Capacity Fee Table contained in Exhibit "A" [Section 4.16.110] of this ordinance, or in the amount determined in a Refund Agreement, whichever is greater.

B.

The primary purpose of the Recycled Water System Capacity Fee is to recover the costs of current and future facilities and assets needed to provide utility service to new or expanded service connections to the District's recycled water system. Such costs shall include the repayment of any debt incurred by the District to construct such facilities.

Revenues from the Recycled Water System Capacity Fee shall also fund master planning and studies related to recycled water facilities, the capital facilities and equipment necessary to operate and maintain the recycled water system, and an allocated share of costs related to general facilities and equipment required to administer the overall operations of the District.

C.

The principal basis of the determination of the amount of the Recycled Water System Capacity Fee is to recover costs for capital assets, including existing and/or future facilities that provide benefit to new connections to the District's recycled water system. The Fee to users is designed to recognize the value of providing the capacity necessary to serve additional users.

The method for calculating the Recycled Water System Capacity Fee is based on the combination approach (Buy-In methodology + Incremental Fee methodology). The Recycled Water System Capacity Fees includes the value of the existing system assets, minus accumulated depreciation and contributed assets to calculate the Buy-In component of the Capacity Fee. The cost of planned, future improvements is used to calculate the Incremental Fee component of the Capacity Fee. The sum of these two components is the total cost basis, which is allocated to existing and future users. The total costs for existing and future assets allocated to future users is divided by the number of future customers, measured in equivalent dwelling units (equivalent to a ¾-inch size meter) that are expected to connect to the system.

D.

The Recycled Water System Capacity Fee shall be reviewed biennially and will be adjusted according to the outcome of the biennial review.

( Ord. No. 46-C, § 2(Exh. A), 5-27-2014 )