13.36.010 Purpose and Intent.
(A) Purpose. The Clare Road Waterline Buy-In Connection Fee (“Fee”) has been established and will be imposed for the purpose of creating a source of funds to reimburse the City of Olathe (the “City”) for principal and interest payments made to construct and install the Clare Road Waterline, 111th to 119th Street, Project No. 5-C-074-10 of the City, which includes approximately 4,150 L.F. of 12" DIP waterline from 112th Street to 119th Street along Clare Road and approximately 5,010 L.F. of 8" DIP waterline from Clare Road to Cedar Creek Wastewater Treatment Plant, along 119th Street (the “Project”). The Project is required to provide potable water to the public and to Cedar Creek Wastewater Treatment Plant.
(B) Intent. The City finds that a Fee will best enable the City to extend the necessary potable water system to portions of the Clare Road Area (as identified in “Exhibit A” and Exhibit “B”). This Area has not yet developed and currently is not served by City waterlines. The City anticipates significant new development that will require waterlines in order to develop in the future.
Therefore, in order to promote and protect the public health, safety and welfare of residents and property owners within the Area and in the City as a whole, the City intends to: (1) provide the necessary potable water system to the Area through the construction of a main waterline and appurtenant facilities; (2) establish the cost thereof; (3) allocate the cost on a per acre basis within the Area to reflect the relative (pro rata) need for the Project by such properties and to ensure that such properties receive reasonable benefits therefrom; (4) collect such Fee in full at the time of connection to the potable water system; (5) restrict the use of the Fees collected to reimbursement to the City for payments of principal and interest on the City’s water and sewer revenue bonds; and (6) ensure that all applicable legal standards and criteria are properly incorporated herein.
(C) Legislative Intent. The City’s intent is to exercise its police power to establish a Fee for the provision of an essential service in an amount sufficient to fund the capital improvements necessary to provide the service to the defined geographic Area which will benefit from the provision of the service and in which such service is presently not provided.
(D) Findings.
(1) The City has undertaken studies to determine the most cost effective manner in which to provide potable water service to the Clare Road Area, including, but not limited to, considerations of current growth and development in the Area, estimated future growth and development, capacity analyses, and estimated peak hour demands.
(2) The City finds that the allocation of the costs of providing such potable water service to the defined geographic Area, much of which is presently undeveloped and in which ultimate uses, densities/intensities and types of development are presently unknown, will be best met by utilizing a per acre Fee which equitably spreads the costs of the Project throughout the defined geographic Area on Exhibits A and B.
(3) The City further finds that, because the Fee is imposed and collected only at the time of connection to the Project, is a one-time charge, is voluntary (only imposed if connection is applied for and made) and reflects only the actual cost of providing the service, the Fee has none of the characteristics of and, therefore, is not a tax nor a special assessment.
(4) The City has authorized the Project in the 2010-2014 Capital Improvements Program and has designated funding for design/inspection, construction, and financing from the City Water and Sewer Fund. (Ord. 09-66 § 1, 2009.)