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A. The following surcharge is established and shall apply to all developed (now or in the future) parcels of real property in the area shown on exhibit 1 to this ordinance (“H Avenue Area”). The current parcel numbers of properties within the H Avenue Area, as shown on the records of Skagit County, are listed in exhibit 2 to this ordinance. The surcharge shall apply to each and all single family hookups, within the H Avenue Area, that connect to the utility system at any time in the future to the new sewer line on H Avenue, including (1) Each parcel currently on septic; (2) Each parcel currently undeveloped; and, (3) Each parcel currently connected to the city sewer system by other means.

B. Effective March 3, 2014, the H Avenue surcharge shall be five thousand three hundred and six dollars and thirty-one cents, not inclusive of applicable utility taxes. The surcharge may be paid either (1) in one payment at the time of issuance of the permit for connection to the Utility system; or, (2) in one hundred and twenty monthly installments of fifty-eight dollars and ninety-one cents or more. If paid in monthly installments, the surcharge shall accrue interest at a rate of six percent per annum on the declining balance. The monthly installment is inclusive of fees, costs and interest, but does not include applicable utility taxes. Following payment of one or more installments, the H Avenue sewer surcharge may be paid in full, with credit for prior installments paid, with no pre-payment penalty.

C. Within thirty days of the effective date of the ordinance setting the H Avenue surcharge, the city shall give written notice by first class mail to (1) each address shown on the city’s utility billing system, and (2) each address shown on the records of Skagit County for all owners of record, for all parcels within the H Avenue area. The notice shall include a copy of this section AMC 13.08.027, and notice of availability to connect to the utility system.

D. The H Avenue sewer surcharge is in addition to such other rates, charges and fees that may be generally applicable to utility customers in the city, including but not limited to chapter 13.08 AMC “Charges” and chapter 13.12 AMC “Connection Charges.”

1. Consistent with city policy under AMC 13.12.130, for currently-improved parcels within the H Avenue area, the H Avenue sewer surcharge shall be waived only if a parcel’s connection is made to the utility system within two years of the date of notice under AMC 13.08.027 D.

2. Any parcel within the H Avenue area currently connected to the utility system by means other than the H Avenue system, upon proof of payment of all charges and fees that were generally applicable to utility customers in the city, including but not limited to chapter 13.08 AMC “Charges” and chapter 13.12 AMC “Connection Charges” at the time of earlier connection, shall be subject only to the H Avenue sewer surcharge and such inspection and other fees applicable to a replacement connection to the utility system upon connection.

E. Properties within the H Avenue area are subject to all other laws and regulations, including but not limited to chapter 13.40 AMC regarding wastewater collection and treatment system.

F. Undeveloped parcels in the H Avenue area shall not be charged until permitted to connect to the utility system. Notwithstanding AMC 13.08.130, properties within the H Avenue area, including properties with septic systems operating in full compliance with Skagit County Health Department regulations, shall not be required to connect to the utility system until any septic or other system (1) is replaced; or, (2) fails and no longer meets state, county or city health standards; at such time, the owner of such property shall connect to the Anacortes sewer system under AMC 13.08.027 C., and otherwise comply title 13 AMC. (Ord. 2934 § 2, 2014; Ord. 2920 § 2, 2014)