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File #: Ord.20-07    Version: A Name: Ordinance No. 20-07 To repeal and recreate Chapter 98, Article III, Division 4 of the Municipal Code of the City of Racine, Wisconsin relating to Water Utility - Impact Fee.
Type: Ordinance Status: Passed
File created: 10/16/2007 In control: Waterworks Commission
On agenda: Final action: 12/4/2007
Title: Ordinance No. 20-07 To repeal and recreate Chapter 98, Article III, Division 4 of the Municipal Code of the City of Racine, Wisconsin relating to Water Utility - Impact Fee. The Common Council of the City of Racine do ordain as follows: Part 1: Chapter 98, Article III, Division 4 of the Municipal Code of the City of Racine is hereby repealed and recreated to read as follows: โ€œDIVISION 4. IMPACT FEE Sec. 98-83. Definitions. For the purpose of this division, the following phrases have the meaning stated: Capital cost means the capital costs to construct, expand or improve public facilities, including the cost of land, and including legal, engineering and design costs to construct, expand or improve public facilities, except that not more than 10% of capital costs may consist of legal, engineering and design costs unless the City can demonstrate that its legal, engineering and design costs which relate directly to the public improvement for which the impact fees were imposed exc...
Sponsors: Thomas Friedel1
Sponsor
Alderman Friedel
 
Title
Ordinance No. 20-07
 
To repeal and recreate Chapter 98, Article III, Division 4 of the Municipal Code of the City of Racine, Wisconsin relating to Water Utility - Impact Fee.
 
The Common Council of the City of Racine do ordain as follows:
 
Part 1:
 
Chapter 98, Article III, Division 4 of the Municipal Code of the City of Racine is hereby repealed and recreated to read as follows:
 
"DIVISION 4.  IMPACT FEE
 
Sec. 98-83.  Definitions.
 
For the purpose of this division, the following phrases have the meaning stated:
 
Capital cost means the capital costs to construct, expand or improve public facilities, including the cost of land, and including legal, engineering and design costs to construct, expand or improve public facilities, except that not more than 10% of capital costs may consist of legal, engineering and design costs unless the City can demonstrate that its legal, engineering and design costs which relate directly to the public improvement for which the impact fees were imposed exceed 10% of capital costs. Capital costs does not include other noncapital costs to construct, expand or improve public facilities, the costs of equipment to construct, expand or improve public facilities or the costs for vehicles.
 
Developer means a person that constructs or creates a land development.
 
Impact Fees means cash fees imposed upon a developer under this chapter.  
 
Land Development means the construction or modification of improvements to real property that creates additional residential dwelling units within the City or that result in nonresidential uses that create a need for new, expanded or improved public facilities within the City. For the purpose of the water impact fee, land development shall include any property, formerly unconnected to the water system that connects to the water system.  
 
Residential Equivalent Connection (REC) means the measure of annual water usage expressed in terms of the amount of water used by a typical single-family residence, which shall be deemed to be 72,000 gallons per year.
 
Sec. 98-84.  Purpose.
 
The purpose of this ordinance is to promote the public health, safety and general welfare of the community and to facilitate the adequate provision for regional water utility system facilities by imposing impact fees upon developers to pay for the capital costs that are necessary to accommodate land development.
 
Sec. 98-85.  Authority.
 
This ordinance is authorized under ยง66.0617, Wis. Stats. The provisions of this ordinance shall not be construed to limit the power of the City to adopt such ordinance pursuant to any other source of local authority, nor to utilize any other methods or powers otherwise available for accomplishing the purposes set forth herein, either in substitution of or in conjunction with this ordinance.
 
Sec. 98-86.  Imposition of impact fees.
(a)  Impact fees are hereby imposed on all developments and land divisions within the City of Racine.
(b)  For all development, impact fees shall be due in full within fourteen (14) days of the issuance of a building or plumbing permit.
(c)  The effective date of a building permit is the date on which all impact fees imposed under this Chapter are paid in full and unless all impact fees are paid in full within 14 days after issuance as required by ยง66.0617 (6) (g), Wis. Stats., said building permit shall expire 15 days after issuance.
Sec. 98-87.  Residential equivalent connection tables.
 
The following tables shall be used to determine RECs to be used from the city water system:
 
(1)      Residential Users.
 
Residential Users   
REC   
Condominium   
0.75/unit   
Single-family home   
1.00   
Duplex   
1.50   
Multiple-family   
0.75/unit   
 
      (2) Nonresidential users.
 
SIC Code
Description
Gallons per Employee Hour
0742   
Veterinary services for animal specialties   
20.0   
0752   
Animal specialty services   
16.0   
0782   
Lawn and garden services   
10.0   
1446   
Industrial sand   
5.0   
1521   
General contractors--Residential   
2.3   
1541   
General contractors--Industrial buildings and warehouses   
2.3   
1611   
General contractors--Public works   
2.3   
1711   
Plumbing, heating and air conditioning   
2.3   
1731   
Electrical work   
2.3   
1761   
Roofing and sheet metal work   
2.3   
1799   
Special trade contractors, N.E.C.   
2.3   
2013   
Sausage and other prepared meats   
110.0   
2065   
Candy and other confectionery products   
50.0   
2087   
Flavoring extracts and syrups, N.E.C.   
75.0   
2394   
Canvas and related products   
2.3   
2431   
Millwork   
5.0   
2434   
Wood kitchen cabinets   
5.0   
2522   
Metal office furniture   
2.3   
2721   
Periodicals: Publishing and printing   
10.0   
2731   
Books: Publishing and printing   
10.0   
2751   
Commercial printing, letterpress and screen   
10.0   
2752   
Commercial printing, lithographic   
10.0   
2789   
Book binding and related work   
10.0   
2795   
Lithographic platemaking and related services   
25.0   
2819   
Industrial inorganic chemicals, N.E.C.   
10.0   
2834   
Pharmaceutical preparation   
10.0   
2841   
Soap and other detergents   
15.0   
2893   
Manufacturing of printing ink   
30.0   
2899   
Chemicals and chemical preparations, N.E.C.   
10.0   
3079   
Miscellaneous plastic products   
85.0   
3111   
Leather tanning and finishing   
345.0   
3272   
Concrete products, except block and brick   
25.0   
3442   
Metal doors, sash, frames, molding and trim   
2.3   
3444   
Sheet metal work   
40.0   
3451   
Screw machine products   
10.0   
3462   
Iron and steel forging   
5.0   
3469   
Metal stampings, N.E.C.   
5.0   
3471   
Electroplating, plating, polishing, anodizing, etc.   
50.0   
3479   
Coating, engraving and allied services, N.E.C.   
100.0   
3495   
Wire springs   
2.3   
3498   
Fabricated pipe and fittings   
2.3   
3499   
Fabricated metal products, N.E.C.   
25.0   
3531   
Construction machinery and equipment   
5.0   
3544   
Spec. dies and tools, die sets, jigs and fixtures, molds   
10.0   
3562   
Ball and roller bearings   
5.0   
3565   
Industrial patterns   
5.0   
3569   
General industrial machinery and equipment, N.E.C.   
4.0   
3576   
Scales and balances, except laboratory   
2.3   
3599   
Machinery, except electrical, N.E.C.   
10.0   
3613   
Switchgear and switchboard apparatus   
5.0   
3632   
Household refrigerators and home and farm freezers   
2.3   
3694   
Electrical equipment for internal combustion engines   
2.3   
3714   
Motor vehicle parts and accessories   
75.0   
3999   
Manufacturing industries, N.E.C.   
2.3   
4141   
Local passenger transportation charter service   
2.3   
4151   
School buses   
2.3   
4212   
Local trucking without storage   
10.0   
4213   
Trucking, except local   
2.3   
4225   
General warehousing and storage   
2.3   
4311   
U.S. Postal Service   
2.3   
4722   
Travel agency   
2.3   
4811   
Telephone communication   
2.3   
4832   
Radio broadcasting   
2.3   
5042   
Toys and hobby goods and supplies   
2.3   
5063   
Electrical apparatus and equipment   
2.3  
5054   
Electrical appliances   
2.3   
5072   
Hardware--Wholesale distribution   
2.3   
5082   
Construction and mining machinery and equipment   
2.3   
5084   
Industrial machinery and equipment   
2.3   
5142   
Frozen foods   
10.0   
5149   
Wholesale groceries and related products, N.E.C.   
10.0   
5199   
Wholesale nondurable goods, N.E.C.   
10.0   
5211   
Lumber and other building materials dealers   
2.3   
5231   
Paint, glass, wallpaper   
2.3   
5251   
Hardware--Retail sales   
2.3   
5261   
Retail nurseries, lawn and garden supply stores   
10.0   
5271   
Mobile home dealers   
2.3   
5311   
Department stores   
2.3   
5331   
Variety stores   
2.3   
5411   
Grocery stores with meat and produce departments   
16.0   
5412   
Grocery stores without meat and produce departments   
6.0   
5441   
Candy, nut and confectionery stores   
10.0   
5462   
Retail bakeries--Baking and selling   
10.0   
5499   
Miscellaneous food stores   
2.3   
5511   
Motor vehicle dealers   
5.0   
5531   
Auto and home supply stores   
2.3   
5541   
Gasoline service stations   
15.0   
5551   
Boat dealers   
5.0   
5611   
Clothing stores   
2.3   
5651   
Shoe stores   
2.3   
5681   
Furriers and fur shops   
5.0   
5711   
Furniture, floor coverings, appliances   
2.3   
5812   
Eating places (restaurants)   
20.0   
5813   
Drinking places (taverns)   
45.0   
5912   
Drugstores and proprietary stores   
2.3   
5921   
Liquor stores   
2.3   
5931   
Used merchandise stores   
2.3   
5941   
Sporting goods stores and bicycle shops   
2.3   
5942-9   
Miscellaneous stores   
2.3   
5992   
Florists   
10.0   
5999   
All other retail stores   
2.3   
6022-59   
Banks   
2.3   
6122-63   
Savings and loans   
2.3   
6311   
Insurance companies   
2.3   
6411   
Insurance agents   
2.3   
6512   
Operators of nonresidential buildings   
2.3   
6515   
Operators of residential mobile home sites   
2.3   
6531   
Real estate agents and managers   
2.3   
6553   
Cemetery subdividers and developers   
2.3   
6722   
Management investment offices   
2.3   
7011   
Hotels, motels, tourist courts   
0.5 REC/Unit   
7211   
Power laundries, family and commercial   
105.0   
7212   
Cleaning and laundry pickup stations   
2.3   
7215   
Fac. coin-op laundries and dry cleaning   
910.0   
7221   
Photographic studios   
2.3   
7231   
Beauty shops   
16.0   
7241   
Barber shops   
10.0   
7261   
Funeral service and crematories   
15.0   
7299   
Miscellaneous services, N.E.C.   
2.3   
7311   
Advertising agencies, employment services   
2.3   
7332   
Blueprinting and photocopying services   
2.3   
7351   
Employment agencies   
2.3   
7391   
Research and development laboratories   
10.0   
7395   
Photo finishing labs   
10.0   
7512   
Passenger car rental and leasing, w/o drivers   
10.0   
7531   
Top and body repair shop   
5.0   
7534   
Tire retreading and repair shops   
20.0   
7538   
General automotive repair shops   
5.0   
7542   
Car washes   
115.0   
7622   
Radio and television repair   
2.3   
7699   
Repair shops and related services, N.E.C.   
2.3   
7832   
Motion picture theaters, not drive-ins   
20.0   
7911   
Dance halls, studios and schools   
20.0   
7922   
Theatrical producers   
20.0   
7933   
Bowling alleys   
50.0   
7992   
Public golf courses   
45.0   
7997   
Membership sports and recreation clubs   
75.0   
7999   
Roller rinks, gymnasiums, museums   
20.0   
8011   
Offices of physicians   
10.0   
8021   
Offices of dentists   
10.0   
8031   
Offices of osteopaths   
10.0   
8041   
Offices of chiropractors   
10.0   
8051   
Skilled nursing care facilities   
20.0   
8091   
Health and allied services, N.E.C.   
10.0   
8111   
Attorneys   
2.3   
8211   
Elementary and secondary schools   
20.0   
8221   
Colleges, universities and professional schools   
25.0   
8231   
Libraries and information centers   
20.0   
8249   
Vocational schools, N.E.C.   
20.0   
8421   
Arboreta, botanical and zoological gardens   
45.0   
8621   
Professional membership organizations   
2.3   
8641   
Civic, social and fraternal associations   
15.0   
8661   
Religious organizations (hours occupied only)   
20.0   
8699   
Membership organizations, N.E.C.   
2.3   
38911   
Engineering, architectural and surveying services   
2.3   
8931   
Accountants   
2.3   
9199   
General government, N.E.C.   
2.3   
38911   
Engineering, architectural and surveying services   
2.3   
8931   
Accountants   
2.3   
9199   
General government, N.E.C.   
2.3   
9221   
Police protection   
2.3   
9224   
Fire protection   
2.3   
9451   
Administration of veteran's affairs   
2.3   
9999   
All offices, N.E.C.   
2.3
 
Sec. 98-88.  Impact Fee.
 
(a)  Established.  Except as otherwise provided, a impact fee is hereby established for each new service connection to the city water supply system and for each change of use or for the addition of a new use or for a new or expanded building on a lot or parcel already connected to the city water system at the time of application. The impact fee shall not apply to the Village of Elmwood Park, the Village of North Bay or the Town of Somers if they fail to enter into a retail water service agreement that is substantially similar to the agreement between the city and the Village of Mt. Pleasant and the city and the Village of Sturtevant.
 
(b)  Amount.  The impact fee is established at $3,143.00 per REC. The amount of the impact fee shall be adjusted annually as of February 1 of each year by the percentage change in the annual average (20-city prices) Construction Cost Index (as published by the Engineering News Record).   
 
a.  For all residential users of the water supply system, the table set forth in section 98-87 shall be used to determine the number of RECs per dwelling unit or building.  
 
b.  For all nonresidential users of the water supply system, the impact fee shall be calculated as follows:
 
i.      The municipality shall obtain and, if extraterritorial, provide to the city reliable information from each applicant for a connection to the Racine water system, before approving the connection, relating to the specific proposed use(s) of the property, in terms of SIC codes, if applicable, and the maximum employee hours for a peak day of operations.
 
ii.      Based on the information provided, the city shall calculate the number of RECs for that property/development using the method set forth in section 98-87 and shall be calculate and impose an impact fee in accordance with subsection (b). All REC calculations for an account shall be rounded up to the nearest whole REC. A minimum fee based upon one REC shall apply to all nonresidential connections.
 
iii.      Since the impact fee determined under subsections i. and ii. above is based upon the estimated intended usage, the City shall have the right to recalculate the charge based upon actual usage for a 12-month period. At any time between the first and third anniversary dates of establishment of the nonresidential water service account, the City may review the account history to determine the highest actual recorded usage in a 12-month period.
 
iv.      Based upon the information obtained under subsection ii, the City may recalculate the impact fee. If the recalculated charge exceeds that of the amount paid for the original charge, the additional amount shall become due and payable at the time the adjustment is made.
 
c.  Such fees collected by the City shall be placed in a special fund which shall be separate from the general fund of the City, and the special fund and all interest earned thereon shall be used exclusively for the particular capital costs for which the fee was imposed.
 
d.  Such fees shall be expended by the City for the aforesaid purpose within 7 years of the date of payment, or such fee amount paid along with any interest that has accumulated shall be refunded by the City to the current owner(s) of the property with respect to which such fee was imposed.
 
Sec. 98-89. Fee Reduction.
 
Any impact fee imposed under this section shall be reduced to compensate for capital costs otherwise imposed by the City, upon the land development subject to this section, for the same public facilities for which an impact fee has been imposed under this section, including by way of special assessments, special charges, land dedications, or any ordinance adopted thereunder or any other items of value. Impact fees imposed under this section shall also be reduced to compensate for moneys received from the federal or state government specifically to provide or pay for the public facilities for which the impact fees under this section are imposed.
 
Sec. 98-90. Exemption From Fees.
 
(a)  The lawful new construction of a single-family dwelling structure upon a nondivisible parcel of land supporting or having supported a habitable single-family dwelling structure razed or to be razed within one year of the date of the issuance of a building permit for the new construction as part of the new construction project shall be exempt from the fees imposed under this chapter.  Any new construction of a single-family dwelling structure upon a single parcel of land involving the demolition of a preexisting residential structure upon such single parcel of land, which project is similar to but not exactly as described above to be exempt, may be found to be exempt upon application to the Common Council and a finding by the Common Council that such project does not bear a rational relationship to the need for new, expanded or improved public facilities required to serve such development. Such application shall be made to the Common Council prior to the payment of any fees under this section.
 
(b)  No impact fee shall be due from the Village of Mt. Pleasant with respect to the connection to the city water system of a lot or parcel within 12 months after the effective date of the 2004 Intergovernmental Retail Water Service Agreement Between the City of Racine (through the city water utility) and the Village of Mt. Pleasant if such lot or parcel was developed with a principal building prior to such effective date, and if the water main to which such lot or parcel is connected was existent prior to such effective date and if the connection is made in compliance with the requirements of Section 13 of such agreement. No impact fee shall be due from the city during the 12 months after the effective date of such agreement.
 
Sec. 98-91.  Administration and Review.
 
The revenue and expenditure totals for each impact fee will be included in the City's annual budget, and a summary of the revenue and expenditure totals for each impact fee must also be made available in the City's annual budget summary required under Wisconsin State Statute ยง65.90 (3) (a).
 
Sec. 98-102.  Appeal.
 
Any developer upon whom an impact fee is imposed under this section shall have the right to contest the amount, collection or use of the impact fee to the Common Council, provided that the developer files a written notice of appeal in the City Clerk's office within 15 days of the developer's filing of an application for a building permit upon which the impact fee is imposed. Such notice of appeal shall be entitled "Notice of Appeal of Impact Fee" and shall state the developer's name, address, telephone number, address (if available) and legal description of the land development upon which the impact fee is imposed, and a statement of the nature of and reasons for the appeal. The City Clerk shall schedule the appeal for consideration by the Common Council at a regular meeting as soon as reasonably practicable under the circumstances and shall notify the developer of the time, date and place of such meeting, in writing, by regular mail, deposited in the mail no later than at least three days before the date of such meeting. Upon review of such appeal, the Common Council may adjust the amount, collection or use of the impact fee upon just and reasonable cause shown."
 
Part 2:
 
This ordinance shall take effect upon passage and the day after publication.
 
Passed by the Common Council:
__________________________
 
Approved:      ______________
 
__________________________
Mayor
 
Attest:
 
__________________________
City Clerk
 
Fiscal Note:  N/A