A. Owners of properties served by the Ferncliff water extension project identified in the city’s water capital plan shall pay a water surcharge as provided in this section. The surcharge shall be in an amount established by council resolution based on 63 percent of the actual final cost of the Ferncliff water extension, including, but not limited to, design, engineering, construction, and financing costs.
B. The boundaries of the geographic area to which this section applies are shown on the map attached to city of Bainbridge Island Ordinance No. 2023-29. The map is adopted as part of this section as if fully set forth herein.
C. Owners of properties formerly served by the Ferncliff water association, as shown on the map referred to in subsection B of this section, shall pay the following fees and charges:
1. A surcharge established by council resolution equal to the property’s fair share of the actual final cost of the Ferncliff water extension project. The property owner may elect to pay the surcharge in a lump sum upon completion of construction of the Ferncliff water extension project or may elect to pay the surcharge over time through a 15-year water rate surcharge included on the property owner’s bimonthly water bill. If the property owner elects to pay the surcharge in a lump sum, the property owner must notify the city of their election and make payment in full within 30 days after the city notifies property owners of the final amount of the surcharge. Property owners who do not timely inform the city of their election to pay in a lump sum shall be deemed to have elected to pay the 15-year water rate surcharge; and
2. The system participation fee established by council resolution pursuant to BIMC 13.16.040. Notwithstanding any contrary provisions of BIMC 13.16.040, the property owner may elect to pay the system participation fee in a lump sum or the property owner may elect to pay the system participation fee over time through a 15-year water rate surcharge included on the property owner’s bimonthly water bill. The system participation fee surcharge shall be in addition to the surcharge established in subsection C.1 of this section. The system participation fee surcharge shall include all costs incurred by the city as the result of property owners electing to pay the fee as a 15-year surcharge rather than as a lump sum, including, but not limited to, any additional financing charges. If the property owner elects to pay the system participation fee in a lump sum, the property owner must notify the city of their election and make payment in full prior to the city issuing a notice to proceed for construction of the Ferncliff water extension project. Property owners who do not timely inform the city of their election to pay in a lump sum shall be deemed to have elected to pay the system participation fee as a 15-year water rate surcharge.
3. A property owner who initially elects to pay the 15-year water rate surcharge may elect to pay the remaining surcharge amount at any time in a lump sum. Once a lump sum payment is made in full, the property will no longer be subject to the water rate surcharge.
D. Owners of properties served by the Casey Street water system as shown on the map referred to in subsection B of this section are current customers of the city water system and shall not be required to pay the system participation fee established by council resolution pursuant to BIMC 13.16.040. Owners of properties served by the Casey Street water system shall be required to pay a surcharge established by council resolution equal to the property’s fair share of the actual final cost of the Ferncliff water extension project. Owners of properties served by the Casey Street water system shall pay the same surcharge and shall have the same lump sum payment and bimonthly service charge options as those specified for properties served by the Ferncliff water association as provided in subsection C of this section.
E. Owners of properties in the surcharge area shown on the map but which are outside of the Ferncliff water association and Casey Street water system areas covered in subsections C and D of this section may connect to the Ferncliff water extension at any time during or after completion of construction. Such owners shall pay the following fees and charges:
1. The system participation fee established by council resolution pursuant to BIMC 13.16.040. The system participation fee shall be paid at the time of connection to the city water system through the installation of a water main tap, service line, and meter; and
2. A surcharge established by council resolution equal to the property’s fair share of the actual costs of the Ferncliff water extension project. Owners of properties that connect to the city water system during construction of the water main across the property frontage or immediately after completion of construction of the Ferncliff water main extension project shall pay the same surcharge and shall have the same lump sum payment and bimonthly service charge options as those specified for properties served by the Ferncliff water association as provided in subsection C of this section.
3. Owners of properties governed by this subsection E that do not connect during construction of the water main across the property frontage or immediately after completion of construction of the Ferncliff water main extension project, but that do so within three years of completion of construction, shall pay the same surcharge, and shall have the same lump sum payment and bimonthly service charge options, as those specified for properties served by the Ferncliff water association as provided in subsection C of this section. In addition to those charges, such owners shall pay all construction costs associated with a new service connection, including, but not limited to, the cost of the water main tap, service line, and meter.
4. Owners of properties governed by this subsection E that choose to connect more than three years after completion of construction of the Ferncliff water main extension project shall pay the surcharge established by city council resolution in a lump sum at the time of connection, together with all construction costs associated with a new service connection, including, but not limited to, the cost of the water main tap, service line, and meter.
F. The water surcharge provided by this section shall be in addition to any water service charge or other fee or charge imposed by the city. (Ord. 2023-29 § 1, 2023; Ord. 2023-18 § 1, 2023)