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Ordinance No. 506-08 6.., 4. ~ ORDINANCE NO. 506-08 AN ORDINANCE OF THE SOUTH TAHOE PUBLIC UTILITY DISTRICT AMENDING SECTIONS 4.8.3 AND 4.8.14 OF DIVISION 4 OF THE ADMINISTRATIVE CODE REGARDING RATE RELIEF FOR EXCESS SEWER CAPACITY AND TRANSFER OF SEWER CAPACITY BE IT ENACTED by the Board of Directors of the South Tahoe Public Utility District, County ofEI Dorado, State of California, as follows: SECTION I - POLICY AND PURPOSE The purpose of this Ordinance is to adopt certain changes to the Administrative Code regarding rate relief for excess sewer capacity and the transfer of sewer capacity from one parcel to another parcel. SECTION II - DEFINITIONS For the purpose of this Ordinance, the terms used herein are defined as follows: A. The District - The South Tahoe Public Utility District. B. The Board - The Board of Directors of the South Tahoe Public Utility District. C. Administrative Code - The compilation and codification of all of the Administrative, Water, Sewer, Street Lighting and Groundwater Management Plan Ordinances ofthe District, which establish the authority and the principles for decisions of the District, and provide the public with guidelines applicable to District operations. D. Excess Sewer Unit - An Excess Sewer Unit is any sewer unit assigned to a parcel in excess of the number of sewer units required for such parcel in accordance with the District's Schedule of Sewer Units. SECTION III - FINDINGS The Board of Directors of the South Tahoe Public Utility District, County ofEI Dorado, State of California, make the following findings: 1. The Administrative Code presently requires payment of quarterly sewer service charges on Excess Sewer Units in order that the Excess Sewer Units may be maintained and later transferred to another parcel; ~ 2. The Administrative Code presently allows for rate relief from billing of quarterly sewer service charges only if the Excess Sewer Units are returned to the District; 3. The length of time for the development of a parcel to receive approval from the various regulatory agencies within the Lake Tahoe Basin may be considerable, and, by the time those approvals are obtained, the cost of the quarterly sewer service charges on Excess Sewer Units may exceed the difference between the cost of purchasing a new sewer unit on the parcel and transferring the equity value of an Excess Sewer Unit to the parcel; 4. The District desires to amend the Administrative Code to provide, on a prospective basis, sewer rate relief to property owners with Excess Sewer Units on their properties; 5. The District desires to amend the Administrative Code to eliminate the transfer of Excess Sewer Units from one parcel to another after December 31,2012; 6. Under the District's proposed amendments to the Administrative Code, Excess Sewer Units may be transferred to another parcel until December 31, 2012. After that time, Excess Sewer Units will no longer be transferable among parcels, but can be used for further development upon the same parcel; " 7. The Board of Directors has determined that it is in the best interest of the District and the community to make these changes to the Administrative Code. SECTION IV - AMEND SECTION 4.8.3 OF THE ADMINISTRATIVE CODE Administrative Code Section 4.8.3 shall be amended as follows: '-' "4.8.3 Rate Relieffor Excess Sewer Units. By December 15,2008, on the form provided by the District, the owner of a parcel with Excess Sewer Units may apply to the District to participate in the Excess Sewer Capacity Program for the relief of service charges for Excess Sewer Units. The applicant requesting such rate relief shall allow the District full and adequate inspection of the parcel, including any improvements, and the sewer lines and related connections to enable the District to determine if the parcel has any Excess Sewer Units. The applicant may be required to test or remove underground piping, draining lines, or the sewer lateral for verification ofthe sewer capacity required on the parcel and that all fixtures on the parcel are low water-use fixtures. Upon a property owner's application to the District for participation in the Excess Sewer Capacity Program, the billing of quarterly sewer service charges will be suspended on any Excess Sewer Units until such time as they are transferred, pursuant to Administrative Code section 4.8.14., or put into use on the same parcel. The adjusted service charge, reflecting the suspension of charges on any Excess Sewer Units, shall be Ordinance No. 506-08 Sewer Unit Transfer Page 2 ~ effective for the first complete billing cycle after the date of the District's approval of the application and verification of any Excess Sewer Units on the same parcel. A property owner with verified Excess Sewer Capacity will receive a credit for any quarterly charges associated with the verified Excess Sewer Capacity in an amount equal to any suspended sewer service charges for Excess Sewer Capacity. Excess Sewer Units may be transferred to another parcel, pursuant to Administrative Code section 4.8.14., or may later be used on the same parcel. The owner of a parcel with Excess Sewer Units may acquire sewer capacity, in addition to those units but only in the same manner, with the same priority, and subject to payment of the same fees, as any other parcel which might need to obtain additional sewer capacity, and only if the District has available sewer capacity at the time the owner requests the additional sewer service." SECTION V - AMEND SECTION 4.8.14 OF THE ADMINISTRATIVE CODE Administrative Code Section 4.8.14 shall be amended as follows: \" "4.8.14 Conditions to Transfer. Transfer of Excess Sewer Units shall be allowed only through December 31, 2012, and shall adhere to the following conditions, and no sewer permit shall be issued for a primary parcel until there is compliance with all of the following conditions: ~ a) Conforming with General Plan. The use of the primary property shall conform to the applicable City or County General Plan. b) Approvals. The applicant for a transfer of Excess Sewer Units shall secure all prior approvals for the transfer required from the City or County and the Tahoe Regional Planning Agency. c) Payment of Fees and Taxes. All existing sewer capacity fees, transfer fees, and the County property taxes shall be paid for the primary and secondary parcels. d) Satisfaction of Liens. All liens upon the secondary parcel of property shall be satisfied, or in the alternative, written concurrence shall be obtained from any lienholder, which written concurrence shall save the District free and harmless from any and all claims arising out of the transfer of Excess Sewer Units from the secondary parcel. e) No Change in Use. The transfer of Excess Sewer Units shall not increase the estimated measurement of flow and strength of wastewater discharged to the treatment facilities. t) Restoration to National Condition. No transfer of all sewer units shall be made from a secondary property that has not had complete restoration to its natural condition. Ordinance No. 506-08 Sewer Unit Transfer Page 3 ~ g) Removal of Sewer LateraL Where all sewer units are transferred from a secondary property, the lateral sewer connection(s) of the secondary property shall be removed, plugged and sealed in a manner satisfactory to the District within thirty (30) days after approval of the transfer. Physical inspection ofthe properly plugged sewer connection(s) shall be made by a District Inspector. h) Disconnection of Water Utilities. Where all sewer units are transferred from a secondary property, all water service utilities for the secondary property shall be capped and disconnection to the satisfaction of the District within thirty (30) days after approval ofthe transfer. Physical inspection of the properly capped water connection(s) shall be made by a District Inspector. i) Exception to Disconnection and RemovaL Where only a portion of the Excess Sewer Units of a secondary property are transferred, subsections 4.8.14 (f), 4.8.14 (g) and 4.8.14 (h), above shall not apply. Any use which remains on the secondary parcel shall have sufficient sewer capacity to accommodate such use as determined by the District. j) Approval of Transfer. The Board authorizes the General Manager of his /her designee to approve transfer of Excess Sewer Units only after he/she finds the following: a) That each and every foregoing provision of this Section 4.8 has been complied with; b) That the provisions of Sections 4.2.5., 4.2.7 and 4.6.4 for issuing a sewer permit to the primary property have been complied with; c) That a completed Transfer of Sewer Capacity Rights Application is submitted to the District." 4..,. SECTION VI - SEVERABILITY If any section, subsection, subdivision, paragraph, sentence, clause or phrase of this Ordinance and its implementing rules and regulations is for any reason held to be unconstitutional or invalid, such decision shall not affect the validity of the remaining portions of this Ordinance or the Administrative Code. The Board of Directors declares and determines that it would have passed section, subsection subdivision, paragraph, sentence, clause or phrase thereof of this Ordinance and its implementing rules and regulations and the Administrative Code irrespective ofthe fact that anyone or more sections, subsections, subdivisions, paragraphs, sentences, clauses or phrases may be determined to be unconstitutional or invalid. ~ Ordinance No. 506-08 Sewer Unit Transfer Page 4 ~ \., \. SECTION VII - EFFECTIVE DATE This Ordinance amending the above referenced section to the Administrative Code shall take effective thirty (30) days after its passage. PASSED AND ADOPTED by the Board of Directors of the South Tahoe Public Utility District at its duly held regular meeting on the 17th day of April, 2008 by the following vote: AYES: Directors Mosbacher, Rise, Claudio, Schafer NOES: None ABSENT: Director Jones I \ <t::~ South Tahoe Public Utility District Ordinance No. 506-08 Sewer Unit Transfer Page 5