Chapter 30 WATER RESOURCES ACQUISITION FEE ORDINANCE OF THE CITY OF PHOENIX*

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Editor's note: Ord. No. G-3265, § 2, provides that the provisions of ch. 30 shall become effective on January 1, 1990.

Cross references: Water residential development occupational fee, ch. 19C; water commercial and industrial development occupational fee, ch. 19D; development impact fee, ch. 29; subdivisions, ch. 32; water, ch. 37.

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Sec. 30-1. Title.

Sec. 30-2. Legislative intent and purpose.

Sec. 30-3. Definitions.

Sec. 30-4. Calculation of the water resources acquisition fee.

Sec. 30-5. Calculation of credits.

Sec. 30-6. Automatic adjustments.

Secs. 30-7– 30-8. Reserved.

Sec. 30-9. Applicability.

Sec. 30-10. Administration of the water resources acquisition fee.

Sec. 30-11. Appeals.

Sec. 30-1. Title.

This chapter shall be known as the "Water Resources Acquisition Fee Ordinance of the City of Phoenix," may be cited as such, and will be referred to hereinafter as "ordinance."

(Ord. No. G-3265, § 1)

Sec. 30-2. Legislative intent and purpose.

This ordinance is adopted for the purpose of promoting the health, safety and general welfare of the residents of the City of Phoenix by:

A. Requiring new development to pay its proportionate share of the costs to the municipality associated with providing water resources to that new development.

B. Providing a beneficial use to the development charged the fee which fee has a reasonable relationship to the burden imposed on the City to provide additional water resources to that development.

C. Setting forth standards and procedures for assessing water resources acquisition fees and administering the water resources acquisition fee program.

(Ord. No. G-3265, § 1)

Sec. 30-3. Definitions.

Association: The Salt River Valley Water Users' Association, an Arizona corporation.

Development: Any activity involving building or construction of improvements on raw or previously developed land where those improvements require the installation of an original water meter or a new water meter with increased capacity to the City of Phoenix water system.

Director: The Water Services Director of the City of Phoenix or his authorized deputy, agent, designee or representative.

Non-member areas: Certain non-member areas have valid and subsisting rights to water stored, developed or controlled by the association. Included in this category, but not limited to these are, townsite, Maricopa Gardens and new State areas hereinafter referred to as "water rights areas." Other non-member areas do not have valid and subsisting rights to the water stored, developed or controlled by the association. Hereinafter in this ordinance the term "non-member areas" when used will only refer to those non-member areas not having valid and subsisting rights to the water stored, developed and controlled by the association.

Off-project areas: Those areas outside the original SRRD boundaries.

On-project areas: Those areas within the SRRD to which the owners or occupants have subscribed to the articles of incorporation and bylaws of the association, and having valid and subsisting water rights. Also referred to as "member areas." For the purposes of this ordinance on-project areas shall also include water rights areas as referred to above. The remainder of the areas within the SRRD are non-member areas.

SRRD: The Salt River Reservoir District as defined in article IV, section 3 of the articles of incorporation of the association. A copy of articles of incorporation are on file in the City Clerk's office.

Water resource projects: Those projects identified in the Phoenix Water Resources Plan or the Water Resources Acquisition Fee Report, as they may be amended from time to time, for securing water for future customers and reducing water demand.

(Ord. No. G-3265, § 1; Ord. No. G-5197, § 1a, adopted 7-2-2008, eff. 8-1-2008)

Cross references: Definitions and rules of construction generally, § 1-2.

Sec. 30-4. Calculation of the water resources acquisition fee.

A. Each new development other than residential development shall be assessed a water resources acquisition fee according to the following calculations based on the meter size requested by the developer and the location of the proposed development. If the meter size is not included in the table below, fees will be based on the relative meter capacity, using the maximum flow rate associated with meters as indicated in American Water Works Manual of Water Supply Practices. The latest version shall be on file with the City Clerk.

	Location
Meter Size	On-Project Areas	Non-Member Areas or Off-Project Area
5/8" or 3/4" disc	$430.00	$1,430.00
1" disc	1,080.00	3,560.00
1 1/2" disc	2,150.00	7,130.00
2" disc	3,440.00	11,400.00
3" displacement	6,890.00	22,800.00
4" displacement	10,760.00	35,630.00
6" displacement	21,520.00	71,250.00
3" compound	6,460.00	21,380.00
4" compound	10,760.00	35,630.00
6" compound	21,520.00	71,250.00
8" compound	34,430.00	114,000.00
10" compound	49,490.00	163,880.00
2" turbine	3,440.00	11,400.00
3" turbine	7,530.00	24,940.00
4" turbine	12,910.00	42,750.00
6" turbine	26,900.00	89,070.00
8" turbine	38,730.00	128,260.00
10" turbine	62,400.00	206,630.00
12" turbine	92,530.00	306,390.00

B. Each new residential development shall be assessed a water resources acquisition fee according to the following calculations based on the type and location of the residential development:

1. For any single-family residence using a five-eighths-inch or a three-quarter-inch water meter the water resources acquisition fee shall be as follows:

Location		Fee Amount
a)	On-project areas	$430.00
b)	Non-member areas or off-project areas	1,430.00

Any single-family residence requesting a water meter larger than three-quarters-inch shall pay a water resources acquisition fee based on the requested meter size as set forth in the table for nonresidential development in Subsection A above. If the meter size is not included in the table, fees will be based on the relative meter capacity, using the maximum flow rate associated with meters as indicated in American Water Works Manual of Water Supply Practices.

2. For each apartment or dwelling unit in a multiple-family development, or mobile home, trailer or recreational vehicle space the water resources acquisition fee shall be as follows:

Location		Fee Amount
a)	On-project areas	$210.00
b)	Non-member areas or off-project areas	$700.00

C. In situations where one or more meters exist, the water resources acquisition fee will be the difference between the fee amount calculated for the new meters and the fee amount that would have been charged for the existing meters, if those meters had to be acquired under the current fee schedule.

D. If applicable, the Director shall establish a credit as described below against the water resources acquisition fee amount derived under the above tables to determine the water resources acquisition fee:

1. Water-conserving plumbing fixtures installed by a developer which conserve water as determined by the Director above and beyond existing flow requirements for plumbing fixtures or other permanent actions taken to reduce water use below existing requirements.

2. Private water resources procured by the developer which, as determined by the Director, partially or wholly satisfy the proposed development's water resource needs. Private sources of water must be eligible for use in meeting the assured supply requirements of the Groundwater Management Act and must be deliverable to the nearest appropriate treatment plant at the request of the City at the developer's expense.

3. Expenditures by community facilities districts for water resources within the district's boundaries will result in an offset of an amount determined by the Director to be proportional to the water resources acquired by the district.

(Ord. No. G-3265, § 1; Ord. No. G-5197, § 1b, adopted 7-2-2008, eff. 8-1-2008)

Editor's note: Section 2 of Ord. No. G-5197 provides for the following: The increase of numeric values for fees and credits specified in Section 30-4 is phased in according to the following schedule: 33 percent of the total increase is effective on January 1, 2010; 66 percent of the total increase is effective on January 1, 2011; and 100 percent of the total increase is effective on January 1, 2012.

Sec. 30-5. Calculation of credits.

A. Credits against the water resources acquisition fee as set forth in Section 30-4 shall be calculated on the basis of the net annual water savings the particular reduction in demand provides the City, taking into account additional financial costs that the City will incur to obtain and transport the water resources. The amount of the credit shall be based on the City's cost per acre-foot of future water resources by location as follows:

Location		Fee Amount
1.	On-project areas	$1,060.00
2.	Non-member areas or off-project areas	3,510.00

B. Credits shall be calculated on the cost per acre-foot of water within the geographical location of the City described above in which the credit is located. For example, developers installing upgraded water-conserving fixtures in on-project areas will receive A credit equal to one thousand and sixty dollars for each acre-foot or portion thereof of water conserved per year in that area above that required by law.

C. To obtain the credit the developer shall submit a study by an engineer licensed by the State of Arizona calculating the amount of water resources saved on an acre-foot basis. All such calculations shall be submitted to the Director and will be considered by the Director in making his credit determination, which determination shall be made within thirty working days from the date the licensed engineer's report is submitted.

(Ord. No. G-3265, § 1; Ord. No. G-5197, § 1c, adopted 7-2-2008, eff. 8-1-2008)

Editor's note: Section 2 of Ord. No. G-5197 provides for the following: The increase of numeric values for fees and credits specified in Section 30-5 is phased in according to the following schedule: 33 percent of the total increase is effective on January 1, 2010; 66 percent of the total increase is effective on January 1, 2011; and 100 percent of the total increase is effective on January 1, 2012.

Sec. 30-6. Automatic adjustments.

The fees and credits contained in this chapter will be automatically adjusted on an annual basis using the Engineering News Record Twenty-City Construction Index or equivalent nationally recognized index. At least thirty days notice in advance of the effective date and amount of the adjusted fees and credits will be provided to the public. A current list of all adjusted fees and credits will be on file with the City Clerk.

(Ord. No. G-5197, § 1d, adopted 7-2-2008, eff. 8-1-2008)

Editor's note: Section 2 of Ord. No. G-5197 provides for the following: The first increase associated with the indexing specified in Section 30-6 is effective on January 1, 2010.

Secs. 30-7– 30-8. Reserved.

Sec. 30-9. Applicability.

This ordinance shall apply to all development connecting with the water system of the City of Phoenix in accordance with the following table:

			Fee Required	Fee Not Required
ADDITIONS TO BUILDINGS
(1)	Additions to a lot which already has building improvements and a water meter connection, according to the follows [following] schedule:
	(A)	Additions attached to an existing building where the addition has no water meter included in the new work, and the addition does not use City water.		X
	(B)	Additions attached to an existing building which additions include a water meter or which require the installation of an original water meter or a new water meter with increased capacity.	X
UNATTACHED NEW BUILDINGS
(2)	A new building which has a new water meter and is not attached to an existing building.		X
REMODELING
(3)	Interior remodeling, such as adding a bathroom, clothes washer, lavatory, water closet, etc.:
	(A)	If existing water meter can be used.		X
	(B)	If water meter is increased in size.	X
MOBILE HOMES
(4)	Mobile homes:
	(A)	Installation of a mobile home in a zoned "mobile home development" (on-site permit) where title to all of the lots remains in one ownership. (Such fees are collected at the time a permit is issued for "mobile home development" site development work.)		X
	(B)	Installation of a mobile home (on-site permit) on a lot other than a zoned "mobile home development."	X
BUILDINGS WHICH ARE MOVED
(5)	A building moved onto a lot:
	(A)	Which requires a new water meter.	X
	(B)	Which has an existing building water meter, but the building served by the meter is removed. (One building is substituted for another building.)		X
	(C)	Same as (B) above, except that the present use of the water meter will continue. (Add another building and leave existing building.)		X
	(D)	Both building and meter moved.		X
SWIMMING POOLS
(6)	Water meter for a swimming pool.		X

(Ord. No. G-3265, § 1)

Sec. 30-10. Administration of the water resources acquisition fee.

A. As specified herein, the water resources acquisition fee program shall be administered by the Director and the Phoenix Development Services Department.

B. The water resources acquisition fee shall be paid to the Development Services Department at the time of the issuance of a building permit for those developments requiring a building permit, or to the Director at the time a water meter is connected from the City's water system to the development for developments not requiring a City of Phoenix building permit. No building permit shall be issued and no water meter shall be connected with the City's water system until any applicable water resources acquisition fee has been paid.

C. Water resources acquisition fees collected pursuant to this ordinance shall be placed in a separate, interest-bearing account.

D. Water resources acquisition fees and any interest thereon collected pursuant to this ordinance shall be used for purposes authorized under this ordinance. The cost of such projects may include related debt service costs, and may include those costs associated with conveying the water to a point where a tie-in with the City's existing water system can be made, but shall not include operating and maintenance costs.

(Ord. No. G-3265, § 1)

Sec. 30-11. Appeals.

A final fee determination may be appealed in accordance with the following procedures:

A. Appeals shall be limited to disputes regarding the size of a new water meter or increase in size of an existing water meter, the use of water-conserving plumbing fixtures, the use of private water resources, and the eligibility of credits against the new or expanded water meter, water-conserving plumbing fixtures or private water resources.

B. Appeals shall be initiated on such written form as the City of Phoenix may prescribe, within ten working days of a final fee determination.

C. Further appeals of the decision of the Director or the Development Services Department shall be made to a hearing officer appointed by the City Council, and thence to the City Council, within ten working days of the prior appeal decision.

D. Building permits or water meter connections, as appropriate, may be issued during the pendency of an appeal if the applicant pays the fee, as determined by the Director or the Development Services Department, at the time the appeal is filed. Upon final disposition of an appeal, the fee shall be adjusted in accordance with the decision rendered and a refund with accrued interest paid, if applicable, with interest calculated at the simple rate of six percent.

E. No longer than three years subsequent to the effective date of this ordinance, and no longer than every three years thereafter, the Water Services Department and Development Services Department shall prepare and submit to the City Council a joint report evaluating this ordinance and its implementation and recommending any changes they believe may be needed to insure that the water resources acquisition fee accurately reflects the actual cost of acquiring water resources to meet the needs of new development. The City Council will take action on the staff report no later than every three years either accepting or rejecting it, with or without modification.

(Ord. No. G-3265, § 1; Ord. No. G-5197, § 1e, adopted 7-2-2008, eff. 8-1-2008)