15-12-4 Line Extension Agreements with Protected Facilities.
The general policy of the Town regarding extension of the water system through private contracts is that all costs associated with construction of water system facilities needed to serve a new customer or property shall be paid by that party developing the property. However, in some cases facilities are installed in such a manner as to make water service available to a property that did not participate in the original installation of the facility; therefore, the participating party may be eligible for a refund of a portion of the construction costs through the collection of a protected facilities charge levied against any and all non-participating party(ies) who request service from and will connect to the protected facility.
A. Definitions.
Agreement (or) protected facility agreement means that portion of the “Agreement for Construction of Water Facilities Under Private Contract” pertaining to the protected facility program.
Non-participating party means developers, property owners, and/or other applicants for water service from the protected facility that did not participate in the original installation and construction costs of the protected facilities.
Participating party means developers, property owners, and/or other applicants sharing in the construction costs of water facility installation designated as a protected facility.
Protected facility means any water facility installed by private contract in such a manner as to provide water service to any property adjacent to the water facility that did not participate in the costs of the facility.
Protected facility charges means the amount of the fee required to be paid by a participating party for water service from a connection to a protected facility.
Refunds means reimbursement of construction costs on protected facilities to the participating party from the collection of protected facility charges less the participating party’s share of the protected facilities charges.
B. Policy. Any extension of the Town’s water distribution system, installed by private contract, that may potentially provide water service to properties which have not participated in the installation costs will be designated as a “protected facility,” when requested by the participating party. Whenever a water facility is installed as a protected facility, it will be the policy of the Town to refund a portion of the construction costs to the party that financed the original water facility installation through the collection of a protected facility fee, levied against all non-participating applicants for service from the facility.
C. The Water Utility Director may execute line extension agreements with protected facilities if funds are expected to be available from payments from non-participating party(ies). The Town and/or its Water Utility will not convey or transfer any refunds to the participating party under any line extension agreement that includes protected facilities unless and until the required payments are collected and received from a non-participating party.
D. The protected facilities charges will be set at fifty percent (50%) of the per foot cost, including any appurtenances such as valves and hydrants, at the time of construction for the minimum size facility installation and based on the lineal footage of the non-participating property fronting the protected facility. This charge will be calculated based on the costs at the time of construction as set forth in the line extension agreement. The charge for other protected facilities (not pipelines and appurtenances) will be determined by the Utility Director or the Director’s designee based on the specific facility and the benefit realized by non-participating parties.
E. This agreement will remain in effect until either the full sum, less the participating party’s(ies’) share of the protected facilities charges based on their fronting footage, has been refunded or for a period of fifteen (15) years from the effective date of the agreement. Any balances remaining unpaid after this time shall be considered cancelled, and the Town shall be fully discharged from any further obligations and payment of refunds under the agreement.
F. Procedures.
1. Designation of Water Facilities as Protected.
a. The Utility Director or the Director’s designee will have the responsibility of determining whether a facility should be designated as protected based on a review of the water plan(s).
b. The Utility Director or the Director’s designee will then initiate the “Agreement for Construction of Water Facilities Under Private Contract” indicating that portion, if any, of the facility installation designated as a protected facility and relevant to the protected facility section of the agreement.
c. The Utility Director or the Director’s designee will be responsible for ensuring that all participating properties are noted on the water plan(s) and that the plan(s) clearly indicates all protected facilities.
d. The Utility Director or the Director’s designee will calculate the total refund due based on the length of pipeline specified as protected facilities on the plans and current construction costs.
2. Refunds from Non-Participating Connections to Protected Facilities.
a. Upon completion and acceptance of the water facilities installed pursuant to a protected facility agreement, the participating party may be eligible for refund of that portion of the cost that is not directly attributable to providing water service solely to participating properties.
b. When application is received by the Town for a water service or water main connection to a protected facility by a non-participating property benefiting from the facility, the Town will collect the protected facilities charges. These charges shall be refunded to the participating party based upon per foot costs at the time of construction, fronting footage and the “as-built” plans of the protected facility installed.
c. In no event will the aggregate amount refunded exceed the full, authorized refundable portion of the cost of the water facility installed.
d. The Water Utility will maintain an accounting record of each protected facility agreement. Within this record, all protected facility payments and refunds will be monitored and logged. Protected facilities fees will continue to be collected until either the total refund amount has been collected or for a period of fifteen (15) years from the effective date of the agreement.
e. Waiver of protected facility charges can only be granted by the party that originally financed the installation of the protected facility. The Water Utility will require a notarized letter granting the waiver prior to waiving the fee from the participating party(ies).
3. Collection of Protected Facility Charges from Non-Participating Properties.
a. As early in the platting and/or plan review process as is practical, the Water Utility Director or the Director’s designee will inform the non-participating party applying for water service that a protected facility charge is required, whenever their property has frontage on a protected facility and their water plan(s) calls for service and/or water main connections to that protected facility.
b. At the time of water plan review for a non-participating party, an estimate of the applicable protected facility charges will be calculated based on the front footage. Payment of this charge will be required prior to installation of meters.
G. All property owned by the participating party(ies) that could be served by the protected facilities will be considered participating parties.
H. If an applicant for water service connects to the end of a protected facility and there is no fronting footage for the applicant’s property for the protected facility, no protected facility charges will be assessed to or collected from the applicant. ((O)12-14, 09/19/2012; (O)07-41, 11/07/2007; (O)98-28, 07/15/1998)