§ 49-73. Definitions.

When used in this Article, the terms listed below shall have the following meanings unless the context requires otherwise. Singular terms shall include their plural.

Acre-foot of water: That quantity of water required to cover one (1) acre of land one (1) foot deep, three hundred twenty-five thousand eight hundred fifty-one (325,851) gallons.

Applicant: A person who applies to the City for a Building Permit or submits a site plan or subdivision plat.

Appurtenance: Any fixed machinery or equipment, structure or other fixture, including integrated hardware, software or other components, associated with a Capital Facility that are necessary or convenient to the operation, use, or maintenance of a Capital Facility, excluding replacement of the same after initial development of the Capital Facility, but only as to those appurtenances, or portions of those appurtenances, which provide service to existing EDUs.

Building Permit: Any permit issued by the City that authorizes vertical construction, increases square footage, authorizes changes to land use, or provides for the addition of a residential or non-residential point of demand to the water, water supply, or wastewater system.

Capital Facility: An asset having a Useful Life of three (3) or more years that is a component of Water or Wastewater Service provided by the City. A Capital Facility may include any associated purchase of real property, architectural and engineering services leading to the design and construction of buildings and facilities, improvements to existing facilities, improvements to or expansions of existing facilities, and associated financing and professional services. Wherever used herein, "infrastructure" shall have the same meaning as "Capital Facilities."

Category of Development: A specific category of development within a Residential, Commercial, Industrial, Mixed-Use, or Supplemental land use district against which a Development Fee is calculated and assessed based on a recommended water meter type where a Detached Single-Family Dwelling Unit is one (1) EDU, while the EDU factor for a unit of development within another Category of Development is represented by the ratio of the demand for Water and Wastewater Services typically generated by that unit as compared to the demand for such services typically generated by a Detached Single-Family Dwelling Unit. The City assesses Development Fees against the various recommended types of water meters for various Categories of Development within the Residential, Commercial, Industrial, Mixed-Use, or Supplemental land use districts as defined in this Section.

City: The City of Scottsdale, Arizona.

Commercial Land Use: Those commercial land uses identified in the Zoning Ordinance for the City of Scottsdale as S-R, Service-Residential; C-S, Regional Shopping Center; C-1, Neighborhood Commercial; C-2, Central Business; C-3, Highway Commercial; C-4, General Commercial; SS, Support Services; C-O, Commercial Office; PCoC, Planned Convenience Center; PNC, Planned Neighborhood Center; PCC, Planned Community Center; PRC, Planned Regional Center.

Commercial/Industrial and Non-Residential means all customer classifications serviced by a water meter, except Single-family Residential and Multi-Family Residential, and are connected to a sewer or septic system.

Credit: A reduction in an assessed Development Fee resulting from developer contributions to, payments for, construction of, or dedications for capital facilities included in an Infrastructure Improvements Plan pursuant to Section 49-83 of this Article (or as otherwise permitted by this Article).

Credit Agreement: A written agreement between the City and the developer(s) of a Subject Development that allocates Credits to the Subject Development pursuant to Section 49-83 of this Article. A Credit Agreement may be included as part of a Development Agreement pursuant to Section 49-84 of this Article.

Credit Allocation: A term used to describe when Credits are distributed to a particular development or parcel of land after execution of a Credit Agreement, but are not yet issued.

Credit Issuance: A term used to describe when the amount of an assessed Development Fee attributable to a particular development or parcel of land is reduced by applying a Credit allocation.

Development: Any property which is proposed to be improved in a manner that creates a demand for City water or wastewater service.

Developer: An individual, group of individuals, partnership, corporation, limited liability company, association, municipal corporation, state agency, or other person or entity undertaking land development activity, and their respective successors and assigns.

Development Agreement: An agreement prepared in accordance with the requirements of A.R.S. § 9-500.05, and any applicable requirements of the City Code.

Direct Benefit: A benefit to an EDU resulting from a Capital Facility that: (a) addresses the need for water and/or wastewater services created in whole or in part by the EDU; and that (b) meets either of the following criteria: (i) the Capital Facility is located in the service area of the EDU and is needed in the service area of the EDU to maintain the Level of Service; or (ii) the Capital Facility substitutes for, or eliminates the need for a Capital Facility that otherwise would have been needed in the service area of the EDU to maintain the City's Level of Service.

Division: The City of Scottsdale Water Resources Division.

Division Director: The division director of Water Resources or designee.

Dwelling Unit: A house, apartment, mobile home, or trailer, group of rooms, or single room occupied as separate living quarters or, if vacant, intended for occupancy as separate living quarters.

DS+PM: The Design Standards and Policies Manual for the City of Scottsdale.

Equipment: Machinery, tools, materials, and other supplies, not including vehicles, that are needed by a Capital Facility to provide the Level of Service specified by the Infrastructure Improvements Plan, excluding replacement of the same after initial development of the Capital Facility, but only as to that equipment, or portion of that equipment, which provides service to existing EDUs.

Equivalent Demand Unit (EDU): A unit of development within a particular Category of Development, defined in terms of a standardized measure of the demand that a unit of development in that Category of Development generates for Water and Wastewater Services. The EDU, or number of EDUs, in the City for Water and Wastewater Services is based on the type of applicable water meter required for a particular category of development in relation to the demand generated by a Detached Single-Family Dwelling Unit. For all Water and Wastewater Services, the EDU factor for a Detached Single-Family Dwelling Unit is one (1), while the EDU factor for a unit of development within another Category of Development is represented as a ratio of the demand for Water and Wastewater Services typically generated by that unit as compared to the demand for such services typically generated by a Detached Single-Family Dwelling Unit. An EDU shall be a "service unit" for purposes of A.R.S. § 9-463.05(T)(10). The 1" inch meter is the minimum type of meter for a Single-Family Dwelling Unit with a base flow of ten (10) gpm.

Existing Capacity: Recognizing that portions of the existing capacity of the water or wastewater systems have capacity available to provide service to new development, the Development Fees shall recover the cost per EDU for that existing capacity. Service provided to new development shall be at the same level of service provided to existing development. The cost of existing capacity providing service to new development may include any of the costs defined herein for a Capital Facility or for Facility Expansion, as the circumstances may dictate. The City may include as a component of the water and wastewater Development Fees, a cost measured by the current replacement cost new less depreciation of existing water and wastewater system Capital Facilities that have capacity available for new development.

Facility Expansion: The expansion of the capacity of an existing facility that serves the same function as an otherwise new water or wastewater service facility in order that the existing facility may serve new development. Facility expansion does not include the repair, maintenance, modernization, or expansion of an existing facility to better serve existing development.

Fee Report: A written report developed pursuant to Section 49-75 of this Article that identifies the methodology for calculating the amount of each Development Fee, explains the relationship between the Development Fee to be assessed and the System Average Cost per EDU calculated in the Infrastructure Improvements Plan, and which meets other requirements set forth in A.R.S. § 9-463.05.

Financing or Debt: Any debt, bond, note, loan, interfund loan, fund transfer or other debt service obligation used to finance the development or expansion of a Capital Facility.

Final Approval: Means (a) for commercial, industrial, or multifamily development, the date of approval of a site plan, or, if no site plan is submitted for the development, the date of approval of a final subdivision plat, or the date of approval of final plans wherein a building permit is issued or a water meter is purchased, and development fees are paid; or (b) for a single-family residential development, the approval of a final subdivision plat.

Grandfathered Facilities: Capital Facilities provided through Financing or Debt incurred before June 1, 2011 for which a Development Fee has been Pledged towards repayment as described in Section 49-75 of this Article.

Grandfathered Credit Agreement: A Credit Agreement entered into by the City and a Developer for Capital Facilities provided by the Developer and accepted by the City before June 1, 2011.

General Plan: Refers to the comprehensive plan, or part thereof, and all amendments, providing for the future growth and development of the City, the overall land-use plan for the City establishing areas of the City for different purposes, zones and activities adopted by the City Council and any subsequent amendments to the General Plan, including but not limited to the updated Land Use Map.

Gpm: Means gallons per minute.

Gross Development Fee: The total Development Fee to be assessed against a Subject Development on a per EDU basis, before subtraction of any Credits.

Industrial Land Use: Those industrial land uses identified in the Zoning Ordinance for the City of Scottsdale as Light Employment, I-G; and Industrial Park, I-1.

Infrastructure Improvements Plan: A written plan that identifies each water or wastewater service or facility expansion that is proposed to be the subject of a Development Fee and otherwise complies with the requirements of Section 49-79, and may be the City's capital improvement plan.

Interim Fee Schedule: Any Development Fee schedule established before January 1, 2012 in accordance with then-applicable law, and which expired not later than August 1, 2014 pursuant to Section 49-82 of this Article.

Land Use Assumptions: Projections of changes in land uses, densities, intensities and population for a Service Area over a period of at least ten (10) years and pursuant to the City's general plan as specified in Section 49-78 of this Article.

Level of Service: A quantitative and/or qualitative measure of Water and Wastewater Services that is to be provided by the City to development in the Service Area, defined in terms of the relationship between service capacity and service demand and accessibility, comfort and convenience, or other similar measures or combinations of measures. Level of Service may be measured differently for different Categories of Water and Wastewater Services, as identified in the Infrastructure Improvements Plan.

Local Collection System: Water and/or Wastewater collection facilities which are not included in the Water and Wastewater Infrastructure Improvement Plan as may be amended from time to time and are strictly internal to the development itself.

Local Distribution System: Water and/or wastewater distribution facilities which are not included in the Water and Wastewater Infrastructure Improvement Plan as may be amended from time to time and are strictly internal to the development itself.

Mixed-Use Districts: D, Downtown; P-C, Planned Community; PCP, Planned Commercial Park; PUD, Planned Unit Development.

Multi-Family Residential means more than one (1) dwelling unit is serviced by a single water meter and is connected to a sewer or septic system.

Multi-Family Residential, Commercial/Industrial and Non-Residential Landscape/ Irrigation means any unoccupied open area which is not connected to a sewer or septic system and excludes Single-family Residential Landscape/Irrigation.

Necessary Public Services: "Necessary Public Services" shall have the meaning prescribed in A.R.S. § 9-463.05(T)(5), but includes within the City of Scottsdale only Water and Wastewater Service. Water and Wastewater Services are authorized to assess Development Fees, as further defined in Section 49-79(a)(1) of this Article.

Offset: An amount which is subtracted from the overall capital costs of providing Water and Wastewater Services to account for those capital components of infrastructure or associated debt that have been or will be paid for by a development through taxes, fees (except for Development Fees), and other revenue sources, as determined by the City pursuant to Section 49-79(a)(13) of this Article.

Pledged: Where used with reference to a Development Fee, a Development Fee shall be considered "pledged" where it was identified by the City as a source of payment or repayment for Financing or Debt that was identified as the source of financing for Water and Wastewater Services for which a Development Fee was assessed pursuant to the then-applicable provisions of A.R.S. § 9-463.05.

Qualified Professional: Any one (1) of the following: (a) a professional engineer, surveyor, financial analyst or planner, or other licensed professional providing services within the scope of that person's education or experience related to City planning, zoning, or Development Fees and holding a license issued by an agency or political subdivision of the State of Arizona; (b) a financial analyst, planner, or other non-licensed professional that is providing services within the scope of the person's education or experience related to City planning, zoning, or Development Fees; or (c) any other person operating under the supervision of one (1) or more of the above.

Residential Land Use: Those land uses identified in the Zoning Code of the City of Scottsdale as Single-family residential and classified as R1-190, R1-130, R1-70, R1-43, R1-35, R1-18, R1-10, R1-7, R1-5; R-2, Two-Family Residential; R-3, Medium Density Residential; R-4, Townhouse Residential; R-4R, Resort/Townhouse Residential; R-5, Multiple-family Residential; and M-H, Manufactured Home.

Right-of-Way: Land which by deed, conveyance, agreement, easement, dedication, usage, or process of law is reserved for or dedicated to the general public for street, highway, alley, public utility, or pedestrian walkway purposes.

Service Area: The area within the boundaries of the City within which the City provides a Category of Water or Wastewater Services to development at a planned Level of Service; and within which a Substantial Nexus exists between the Capital Facilities to be provided and the development to be served. Some or all of the Capital Facilities providing service to a Service Area may be physically located outside of the Service Area provided that the required Substantial Nexus or Direct Benefit is demonstrated to exist.

Service Unit: A standardized measure of consumption, use, generation, or discharge attributable to an individual unit of development calculated pursuant to generally accepted engineering or planning standards for Water or Wastewater Services or facility expansion. As used herein, a service unit is the same as an Equivalent Demand Unit (EDU).

Single-family Residential means one (1) dwelling unit is serviced by a single water meter in which only a single family typically resides and is connected to a sewer or septic system.

Single-family Residential Landscape/Irrigation means any unoccupied open area which is not connected to a sewer or septic system and provides service to a Single-family Residential landscape area.

Subject Development: A land area linked by a unified plan of development, which must be contiguous unless the land area is part of a development agreement executed in accordance with A.R.S. § 9-500.05.

Substantial Nexus: A substantial nexus exists where the demand for Water or Wastewater Services that will be generated by an EDU can be reasonably quantified in terms of the burden it will impose on the available capacity of existing Capital Facilities, the need it will create for new or expanded Capital Facilities, and/or the benefit to the development from those Capital Facilities.

Supplemental Districts: P-1, Parking P-1; P-2, Parking P-2; P-3, Parking P-3; P-4, Parking P-4; W-P, Western Theme Park; SC, Special Campus; H-P, Historic Property; OS-Open Space; COS, Conservation Open Space; ESL, Environmentally Sensitive Lands; F-O, Foothills Overlay; DO, Downtown Overlay; PBD, Planned Block Development; PRD, Planned Residential Development.

System Average Cost Per EDU: The total current value of existing facilities plus the future capital costs listed in the Infrastructure Improvements Plan for Water or Wastewater Services divided by the total service capacity projected in the Service Area for Water or Wastewater Services over the same time period.

Useful Life: The period of time in which an asset can reasonably be expected to be used under normal conditions, whether or not the asset will continue to be owned and operated by the City over the entirety of such period.

Wastewater Service: Includes, but is not limited to sewers, lift stations, reclamation plants, wastewater treatment plants, and all other facilities for the collection, interception, transportation, treatment and disposal of wastewater, and any appurtenances for those facilities.

Water Service: Includes, but is not limited to those facilities necessary to provide for water services to development, including the acquisition, supply, transportation, treatment, purification, and distribution of water, and any appurtenances for those facilities.

Water Supply: Is an essential part of Water Service, and funds from the Water Supply fund account may only be used for acquiring, transporting, treating, and managing through recharge to and recovery from underground aquifers, new and renewable supplies of water.

(Ord. No. 4130, § 3(Res. No. 9620, § 1, Exh. A), 2-25-14, eff. 7-1-14; Ord. No. 4170, § 1(Res. No. 9873, § 1), 9-23-14, eff. 11-1-14; Ord. No. 4194, § 1(Res. No. 11054, § 1, Exh. A), 5-12-15; Ord. No. 4308, § 1(Res. No. 10799, § 1(Exh. A)), 5-23-17, eff. 7-1-17)