§ 42-47. Exemptions and credits.

(a)

Exemptions. The following shall be exempted from payment of the wastewater facilities capital recovery fee:

(1)

Alterations or expansion of an existing building where no additional or larger wastewater connections are requested and where the use is not changed.

(2)

The replacement of a building or structure with a new building or structure of the same size and use where no additional or larger wastewater connections are requested and where the use is not changed.

(3)

The installation of a replacement home on a lot or other such site when a wastewater capital facilities impact fee for such home site has previously been paid pursuant to this article or where a home legally existed on such site on or prior to the effective date of this article.

(4)

Connection for any lot of record at the time of adoption of this article as long as wastewater service has been provided and metered to that site in the past. Any claim of exemption must be made no later than the time of application for connection to the city's wastewater system. Any claim not so made shall be deemed waived.

(b)

Credits.

(1)

Wastewater facilities capital improvements may be offered by the feepayer as total or partial payment of the required wastewater facilities capital recovery fee. The offeror must request a wastewater facilities capital recovery fee credit. If the city accepts such an offer, whether the acceptance is before or after the effective date of this article, the credit shall be determined and provided in the following manner:

a.

Credit for the dedication of land if dedicated solely for the purpose of wastewater facilities shall be valued at:

i.

One hundred fifteen percent of the most recent assessed value by the Lake County Property Appraiser, or

ii.

By such other appropriate method as the city may have accepted prior to the effective date of this article for particular wastewater facilities improvements, or

iii.

By fair market value established by private appraisers acceptable to the city. Credit for the dedication of wastewater facilities land shall be provided when the property has been conveyed at no charge to, and accepted by, the city in a manner satisfactory to the city council.

Land dedicated toward the recreation requirement of the city's land development regulations shall not be deemed "solely for the purpose of wastewater facilities" even if also used for a wastewater facility site.

b.

Applicants for credit for construction of wastewater facilities improvements shall submit acceptable engineering drawings and specifications, and construction cost estimates to the city engineer. The city engineer shall determine credit for construction based upon either these cost estimates or upon alternative engineering criteria and construction cost estimates if the city engineer determines that such estimates submitted by the applicant are either unreliable or inaccurate. The city manager or his designee shall provide the applicant with a letter or certificate setting forth the dollar amount of the credit, the wastewater facilities capital recovery fee component(s) to which the credit will apply, the reason for the credit, and the legal description or other adequate description of the project or development to which the credit may be applied. The applicant must sign and date a duplicate copy of such letter or certificate indicating his agreement to the terms of the letter or certificate and return such signed document to the city engineer before credit will be given. The failure of the applicant to sign, date, and return such document within 60 days shall nullify the credit.

c.

Except as provided in subsection d., credit against capital recovery fees otherwise due will not be provided until:

i.

The construction is completed and accepted by the city, or

ii.

A suitable maintenance and warranty bond is received and approved by the city, when applicable.

d.

Credit may be provided before completion of specified wastewater facilities improvements if adequate assurances are given by the applicant that the standards set out in subsection c. will be met and if the feepayer posts security as provided below for the costs of such construction. Security in the form of a performance bond, irrevocable letter of credit or escrow agreement shall be posted with and approved by the clerk of the city in an amount determined by the city manager or designee. If the wastewater facilities construction project will not be constructed within one year of the acceptance of the offer by the city manager or designee, the amount of the security shall be increased by ten percent compounded, for each year of the life of the security. The security shall be reviewed and approved by the clerk of the city prior to acceptance of the security by the clerk. If the project is not to be completed within five years of the date of the feepayer's offer, the city council must approve the wastewater facilities construction project and its scheduled completion date prior to the acceptance of the offer by the city manager or designee.

(2)

Any claim for credit must be made no later than the time of application for connection. Any claim not so made shall be deemed waived.

(3)

Credits shall not be transferable from one project or development to another without the written approval of the city council.

(4)

Credits shall not be transferable from one component of the wastewater facilities impact fee to another component of this fee.

(5)

Determinations made by the city manager or designee pursuant to the credit provisions of this section must be appealed to the city council by filing a written request with the mayor or designee within ten days of the city manager or designee's determination.

(Ord. No. 2004-29, § 1, 1-11-2005; Ord. No. 2006-14, § 1, 4-11-2006)