NEW BRAUNFELS UTILITIES POLICY

WITH RESPECT TO CAPITAL RECOVERY FEES

 

ARTICLE II

ADOPTION OF CAPITAL RECOVERY FEES

 

 

Section 2.01 Conceptual Water and Wastewater Service Areas

 

The conceptual water and wastewater service areas for capital recovery fee purposes have been approved by the City Council. The maps showing such service areas are maintained in the City’s planning department.

 

Section 2.02 Land Use Assumptions

 

Land use assumptions used in the development of capital recovery fees in the Ordinance have been approved by the City Council and are being maintained in the City’s planning department.

 

Section 2.03 Living Units Equivalent

 

(A)       As defined in the Ordinance, LUE is the standardized measure referred to in the definition of “service unit” in this policy. Service units are established in accordance with generally accepted engineering and planning standards.

 

(B)       Upon water or wastewater tap or service connection purchase, the LUE service units for the basis of charging a capital recovery fee shall be calculated based on the size of the water meter(s) for the development as indicated on Schedule 1 attached, or alternatively, based on engineering reports acceptable to NBU, prepared by qualified professional engineers licensed to perform such professional engineering services in the State of Texas, which demonstrate that the number of LUEs of service for the new development will be less than those indicated by the size of the water meter.

 

(C)       If NBU staff determines that the water pressure in the NBU transmission main is significantly higher or lower than standard pressure such that the size of the water meter is not indicative of actual service demand, the number of LUEs based on a smaller or larger sized meter which more accurately reflects the flow rate and the system pressure conditions may be adjusted.

 

(D)       Water demand for a new development related solely to fire protection shall be supplied through unmetered infrastructure.

 

(E)       Upon wastewater service connection for which no water service connection has been purchased, LUEs shall be established by a professional engineer licensed in the State of Texas and approved by NBU staff.

 

Section 2.04 Capital Recovery Fees Per LUE

 

(A)       The maximum capital recovery fee per living unit equivalent is reflected on Schedule 2 attached to this policy. This maximum capital recovery fee has been adopted by the City pursuant to the provisions of the Act, and NBU may not charge capital recovery fees in excess of the maximum capital recovery fee per LUE as established by the City, and as such maximum capital recovery fee schedule shall be amended from time to time.

(B)       Capital recovery fees actually to be collected by NBU shall be determined from time to time by the Board of Trustees of the New Braunfels Utilities. The capital recovery fees per LUE to be collected are set forth on Schedule 3 attached to this policy. Capital recovery fees to be collected shall be amended only by a majority vote of the NBU Board of Trustees to any fee amounts less than or equal to the maximum fee ceiling amounts reflected on Schedule 2 attached to this policy. Any such amendments shall occur at a regular or special meeting of the NBU Board of Trustees at which comments shall be heard concerning the merits of the fee change proposal.

 

Section 2.05 Assessment of Capital Recovery Fees

(A)       The approval of any subdivision of land or of any new development shall include as a condition the assessment of the capital recovery fee applicable to such development.

 

(B)       Assessment of the capital recovery fee for any new development shall be made as follows:

 

(1)        Capital recovery fees shall be assessed against new development using the maximum capital recovery fee per service unit in Schedule 2 attached to this policy.

 

(2)        For a new development for which final subdivision plat recordation occurred after June 20, 1987, assessment shall occur at the time of such plat approval, and shall be the amount of the maximum capital recovery fee per service unit in effect on the date of such final subdivision plat recordation.

 

(3)        For a new development on land which is unpiatted at the time of a tap purchase or utility connection application and for which platting is not required, or for a new development for which final plat recordation occurred on or before June 20, 1987, and for which replatting is not required, assessment shall occur at the time of tap purchase, and shall be the amount of the maximum capital recovery fee per service unit then in effect.

 

(C)       Following assessment of the capital recovery fee pursuant to Section 2.05B herein, the maximum capital recovery fee per service unit for a development cannot be increased, unless the owner proposes to increase the number of service units for the development, in which case a new assessment for the area to be developed shall occur at the Schedule 2 rate then in effect and at the times prescribed in this section for assessment.

 

(D)       Following the lapse or expiration of approval of a final subdivision plat or tap purchase, a new assessment must be established at the time an application for such new development is filed or refiled. Following the vacating of any plat or submittal of any replat, a new assessment must be made in accordance with this section.

 

Section 2.06 Calculation of Capital Recovery Fees

 

(A)       Capital recovery fees shall be charged for the connection of water/sewer service to any single element customer, and shall include, but not be limited to, cost per LUE of elevated storage, ground storage, water treatment facilities, pumping stations, wells, wastewater lift stations and wastewater treatment facilities. Costs for the capital recovery fee shall be developed based on the LUEs available through the required meter size, not including separate required fireline connections. Additional costs shall be required for tapping fees, metering and fireline requirements. The amount of capital recovery fees to be paid shall be determined by multiplying the capital recovery fee per LUE to be collected times the number of LUEs, using Schedule 3 attached to this policy.

 

(B)       If engineering evidence acceptable to NBU staff reflects that a significant amount of water that can go through a water meter proposed to serve an industrial development cannot enter the wastewater system because the water either stays in the product being manufactured or is disposed of in some manner other than the NBU wastewater system, a reduced wastewater capital recovery fee may be approved to more accurately represent the actual use of the wastewater system.

 

Section 2.07 Collection of Capital Recovery Fees

 

(A)       Payment of capital recovery fees shall be at the times prescribed below in accordance with Schedule 3. No water or wastewater tap or service connection shall be made until all capital recovery fees have been paid to NBU, except as provided in C.

 

(1)        Except for new developments which are to be served by facilities constructed by a developer in accordance with section 2.09, capital recovery fees shall be collected at the time an application to purchase a water or wastewater tap is submitted to NBU. The property owner may elect to pay the capital recovery fee at the time a building permit is issued.

 

(2)        If the tap purchase or building permit for which a capital recovery fee has been paid has expired, and a new application is thereafter filed, the capital recovery fees due shall be computed using Schedule 3 then in effect, and previous payments of capital recovery fees shall be credited against the new fees due.

 

(3)        Whenever the property owner proposes to increase the number of service units for a development, the additional capital recovery fees collected for such new service units shall be determined by using Schedule 3 then in effect and such additional fee shall be collected at times prescribed by this section.

 

(4)        Water or wastewater capital recovery fees may be collected at the time of final plat recordation for new developments which are served by a water or wastewater capital improvement and which are located a rebate area designated pursuant to Section 2.09.

 

(B)       Refunds of capital recovery fees actually paid shall be in accordance with the Act.

 

(C)       In the event that a water or wastewater utility service is provided as the result of a conversion from an individual well, or septic or other individual waste disposal system, the appropriate capital recovery fee shall be collected at the time of tap purchase, except as provided below:

 

(1)        At the request of the applicant, and with the approval of the Chief Executive Officer, the capital recovery fees for such customers may be paid in increments over a period of not more than one year, with interest computed on the unpaid balance at the statutory rate as set forth in Tex. Rev. Civ. Stat. art.5069-1.03, or any successor statute.

 

(2)        If the applicant chooses this extended payment option, the applicant shall, as a condition of utility service sign and file with the Chief Executive Officer, and consent to the recordation of, a “notice of capital recovery fee due”, which shall be recorded as a lien against the subject property. New Braunfels Utilities shall release the lien held only upon payment in full of the capital recovery fees and any late penalties and applicable interest.

 

(3)        Late payments shall subject the applicant to a penalty of ten percent of the amount due and additional interest in addition to all other remedies available to New Braunfels Utilities as lien holder.

 

Section 2.08 Capital Recovery Fees Payable by Wholesale Customers

 

Capital recovery fees to be paid by wholesale customers of NBU shall be established in contracts between NBU and such customers.

 

Section 2.09 Rebate of Capital Recovery Fees

 

(A)       A property owner who constructs a water facility or a wastewater facility pursuant to an agreement for capital improvements designated on the impact fee capital improvements plan may receive a rebate from NBU for the reasonable costs of constructing the facility from the proceeds of capital recovery fees due from other new developments that will utilize the facility for that category of capital improvement, or by agreement from other funds, in the amount determined under subsection C.

 

(B)       NBU shall set forth in the agreement for capital improvements the amount to be rebated and the area (“rebate area”) in which capital recovery fees shall be collected from new developments utilizing the facility

 

(C)       The amount of the rebate shall be determined pursuant to rules established in this section or pursuant to administrative guidelines promulgated by NBU. The following rules shall apply:

 

(1)        No rebate shall be given for capital improvements which are not identified within the applicable capital recovery fee capital improvements plan, unless otherwise agreed to by NBU.

 

(2)        The costs used to determine the rebate shall not exceed those assumed for the capital improvements included in the capital improvements plan.

 

(3)        No rebate shall be given for the dedication or construction of site-related facilities.

 

(4)        The amount of the rebate shall be net of the costs attributable to the property owner’s utilization of the facility.

 

(5)        The amount of the rebate shall not exceed the costs of constructing the improvement multiplied by a fraction, the numerator of which is the capital recovery fee per service unit to be collected using Schedule 3 and the denominator of which is the maximum capital recovery fee per service unit using Schedule 2.

 

(6)        No rebate for construction of any facility shall exceed the total amount of capital recovery fees due from new developments utilizing the facility.

 

(D)       Capital recovery fees collected from new developments utilizing the capital improvements constructed pursuant to this section shall be rebated to the property owner annually.