ARTICLE V
DISTRICT FEES
Section 501 - Capacity Fees
Definition of Capacity Fee
A Capacity fee is based on the cost of developing the wastewater collection, treatment and disposal facilities that are required to treat the flows and strengths into the system from a particular wastewater connection. The District shall collect a capacity fee from property owners requesting sewer capacity in the District’s wastewater system. Additional capacity fees shall be collected if the property has or makes a change of use, expansion, or tenant improvement that require additional capacity as determined by the District, in accordance with the District Ordinance. Additional capacity requests will not be considered on properties with delinquent user, hookup or capacity fees.
The capacity fee is based on a calculation pursuant to the District Ordinance for the specific requested use. The revenue collected from capacity fees may be used for the District’s capital expenditures necessary to provide proper capacity, capital wastewater system projects, and capital equipment purchases.
The capacity fees are the responsibility of the property owner and the right to sewer capacity runs with the land and is limited to the approved and paid for capacity.
Failure to make the capacity fee payment within 30 days of the approval date may void the approval.
For use in design and monitoring plant capacity: 1 ERU = 150 gallons per day plus strengths as listed in Article X.
Formula for Calculation of Capacity Fee
All User Classes that apply to one account will be combined for calculation of fees.
No. of units x ERU per unit = Total Capacity ERU
Total Capacity ERU x Capital ERU Rate = Capacity Fee
Capacity Fee Rate
The capacity fee rate is established at a rate per ERU, as set forth in the most current Resolution.
Section 501A – Line Upgrade Fee
In designated areas a one-time main line upgrade fee is collected in addition to the capacity fee. This revenue collected is used for the District’s expenditures necessary to upgrade sewer mainlines to accommodate additional capacity.
Section 502 - Hookup Fees
Hookup Fees are for connection to the District Wastewater system, not including the cost of the actual physical connection. This fee is to cover the District’s administrative and operational costs involved to process the application and inspection.
Prior to construction and/or connection the property owner shall submit an Application for Sewer Service along with the hookup fee and any applicable capacity fees.
All hookup and capacity Fees shall be paid in full to the District prior to an application approval.
Hookup Fee Rate
Hookup fees are established at a rate per Application for Sewer Service, as set forth in the most current Resolution.
Section 503 - User Fees
User Fee Definition
User Fees are proportionate shares of the cost of operation, maintenance, and replacement of a wastewater treatment and disposal system, including a system for the treatment and use of effluent, and may include the cost of administrators, surveyors, sanitation experts, engineers, legal counsel and other persons as are reasonably necessary for the operation, maintenance and replacement of the systems. These costs shall be allocated among all properties connected to the wastewater system, whether or not they are discharging sewerage into the system. Billing may begin when the connection is made to the system. All user fees will be billed to, and are the sole responsibility of, the property owner.
Minimum User Fee: User fees for connected commercial properties, but whose usage falls below the minimum cost per account for the District’s operation and maintenance expenses, shall be charged the Minimum Charge per account per month.
Quarterly Billing Cycle and Interest
User Fee charges are for calendar quarters and will be billed on or before the 25th day of the first month in each quarter and due by the 15th day of the second month in each quarter. Such charges will be delinquent if not paid within 15 days of such said due date. Delinquent service charges shall bear an interest charge of 10% per annum. Any and all unpaid service charges, penalties may be collected by court action, together with all costs of action and attorney's fees.
Formula for Calculation of User Fees
The District Ordinance Table A shall be used to determine quarterly user fees based on the rate per ERU, or a minimum charge may apply. All User Classes that apply to one account will be combined for calculation of fees.
(ERU = 150 gallons per day plus strengths)
No. of units x ERU per unit = Daily ERU
Daily ERU x Daily Rate = Daily User Fee
Daily User Fee x 30 = Monthly User Fee
Monthly User Fee x 3 = Quarterly User Fee
User Fees Rates
The User Fee Rate is established at a rate per ERU per day, as set forth in the most current Resolution.
The Minimum User Fee Rate for commercial accounts is established at a rate per account per month, as set forth in the most current Resolution.
Section 504 - Activation Fee
All activation fees and service charges shall be billed to, and the sole responsibility of, the property owner. An activation fee for each account shall be paid by the property owner to the District at or before the time the sewer service is connected or upon transfer of ownership. This non-refundable fee is charged to cover the District’s cost to activate or transfer a sewer account.
Section 505 - Delinquencies, Liens, and Interest
For accounts with user fees delinquent in excess of 90 days the District may proceed with collections pursuant to the applicable Arizona Revised Statutes as follows:
The District may file a lien on property for the nonpayment of user fees for services provided to the property if the fees are delinquent for more than ninety days. At least thirty days before filing the lien, the District shall provide written notice to the owner of the property and shall include a notice of an opportunity for a hearing before the Board of Directors or their designated officer. The notice of lien shall be personally served on the property owner or mailed by certified mail to the property owner’s last known address or to the address to which the most recent property tax assessment was mailed. If the property owner does not reside on the property, the notice shall be mailed by certified mail to the owner’s last known address.
The unpaid user fees are a lien on the property from the date of recording in the office of the County Recorder in the County in which the property is located until the fees and all costs are paid.
A sale of the property to satisfy a lien assessed pursuant to this section shall be made on a judgment of foreclosure and order of sale. The District may bring an action to foreclose the lien in the Superior Court in the County in which the property is located any time after recording. Failure to foreclose the lien does not affect its validity. The recorded unpaid user fees are prima facie evidence of the truth of all matters recited in the recording and of the regularity of all proceedings before the recording.
Unpaid user fees pursuant to this article accrue interest at the rate of 10% per annum.
The District shall add all costs incurred by the District including interest, attorney fees and costs in filing and enforcing the lien, to the unpaid user fees, and the costs are a liability of the property owner payable from the proceeds of the sale.
Prior assessment of unpaid user fees pursuant to this section does not bar a subsequent assessment pursuant to this section, and any number of liens on the same parcel of property may be enforced in the same action.
Additional capacity requests will not be considered on properties with delinquent user, hookup or capacity fees.
Section 506 - Return Check Charge
The District may charge a $25.00 return check charge for all checks returned for insufficient funds.
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