By Myrna Trauntvein
Times-News Correspondent
A public hearing was held Tuesday just prior to city council meeting to consider adoption of impact fees for the power and culinary water utilities of Nephi. Fred Philpot, Vice President at Lewis Young Robertson & Burningham, presented the prepared report on both the water and power utilities for the handful of residents who attended the public hearing. “This is the same group of citizens who attended council meeting two weeks ago and heard the report given to the council,” said Philpot. Lewis Young Robertson & Burningham, Inc. prepared the Impact Fee Facilities Plan (IFFP) for water and power. The reports suggest a water impact fee of $6,067 per EDU (Equivalent Domestic Unit) and an electric impact fee of $347 per kilowatt. The EDU measurement for the water fee is 800 gallons per day/EDU for source and 400 gallons per day/EDU for storage. The power level of service per EDU is 5.97 kilowatts. That would mean that new development, per home, would have an impact fee of $2,000. “That would represent $8,138.59 for an impact fee for both power and water,” said Seth Atkinson, city administrator. “Residents have had great utility rates and service for 40 years,” said Nathan Memmott, city council member. Not much had been done to upgrade the system during those years and the need to add to the infrastructure had resulted in the current work being done. Leonard Trauntvein asked what effect, if any, the impact fees would have on current residents. The impact fee will see to it that only those building will bear the burden of paying for the infrastructure needed to allow a continuance of building. “The impact fee will only be for new development,” said Memmott. In fact, said Kent Jones, council member, it would help alleviate expenses for development for current residents. Present residents will not be required to pay impact fees “The only way it would cost you more,” said Donald Ball, “is if you bought a new building lot.” The fees would help the city build capacity for the city. In a capacity market the utility or electricity supplier is required to have enough resources to meet its customers’ demand plus a reserve amount. “I think, under the circumstances, that what we need for growth requires impact fees and that they are appropriate,” said Glade Nielson, mayor. Some communities had larger impact fees in total, said Philpot. Some communities charged impact fees in order to pay for the need for increased police officers and other public services, such as transportation, needed by a growing population. “These are the first impact fees for Nephi,” said Philpot. Philpot said that his company certified that the Impact Fee Analysis (IFA) prepared for water and power includes only the costs of public facilities that are allowed under the Impact Fees Act and actually incurred or projected to be incurred or encumbered within six years after the day on which each impact fee is paid. “We really need to list the EDU for power and water,” said Memmott. He thought the impact fee listed of $347 per kilowatt did not make it clear that each of the 5.97 kilowatts was charged that amount for a total of approximately $2,000 in total for the electric impact fee that those building new homes would need to pay prior to building. He thought the total fee for each impact should be listed, which was not being done with the current document. Nielson asked how a builder would become aware of the impact fees needing to be paid before building. “Would they learn that when they go in for a building permit?” he asked. “It will be part of your consolidated fee schedule,” said Philpot. As such, it should not come as a surprise to anyone wanting to build a home that there would be an impact fee on new construction to help defray the costs of providing water and electricity to the building. When there is a charge on a subdivision, for example, said Atkinson, the person buying the home is often not aware of the impact fee because those fees are paid by the builder and are passed on to the purchaser in the cost of the building lot. Ball said that the power utility could always be added to but water was finite. The city had enough water resources, said Atkinson. What was lacking was the ability to store and deliver water. That was why a new water tank and additional delivery was being constructed. “We do have water resources,” said Atkinson. “The purpose of the IFFP, with supporting Impact Fee Analysis (IFA), is to fulfill the requirements established in Utah Code and to help Nephi City fund necessary capital improvements for future growth,” said Philpot. The document addressed the water and power infrastructure needed to serve Nephi through the next 10 years, as well as the appropriate impact fees the city may charge to new growth to maintain the level of service (LOS) for all residents. Any demand generated from new development that overburdens the existing system beyond the existing capacity justifies the construction of new facilities. “Nephi is currently in the process of building new system improvements to serve new development. For the purposes of this analysis, these facilities are considered future improvements,” said Philpot.
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