(a) Petition.
(1) The owners of a majority of the properties in a defined area that is not served by public water or wastewater facilities may petition the Department for the establishment of public water or wastewater facilities within the defined area.
(2) A majority of the owners of private water or wastewater facilities or the owners of a majority of the properties served by private water or wastewater facilities may petition the Department to bring the private water or wastewater facilities up to County standards such that the private facilities can become owned by the County.
(b) Revised defined area.
(1) After receipt of a petition submitted in accordance with subsection (a)(1), the Department may establish a revised defined area to add or remove properties as necessary for engineering purposes. If the Department establishes a revised defined area, the petition shall thereafter be considered a petition for establishment of public water or wastewater facilities within the revised defined area.
(2) The Department shall notify the owners of the properties added to or removed from the defined area. An owner of a property added to the revised defined area shall be given 60 days to vote on the petition for the revised defined area. If a property owner does not respond within 60 days of the date of the notice from the Department, it shall be considered a vote against the petition.
(3) The Department shall notify the owners of the properties within the original defined area who remain in the revised defined area of the revised defined area, and the owners shall be given 60 days to change the position on their vote on the original petition. If a property owner does not respond within 60 days of the date of the notice from the Department, the vote on the original petition shall remain unchanged.
(4) After the expiration of the times to vote provided in paragraphs (2) and (3), the Department shall determine whether the owners of a majority of the properties in the revised defined area have voted in favor of the petition. The Department may follow the procedures in this section only after it is determined that the owners of a majority of the properties in the revised defined area have voted in favor of the petition.
(c) Treatment of petition for one facility as petition for both facilities. At the discretion of the Director, a petition for either water or wastewater facilities may be treated as a petition for both facilities. If the Director decides to do so, the Director shall combine the estimated costs and the estimated revenues for both facilities for the purpose of determining the project cost.
(d) Preliminary estimate. On receipt of a petition by the majority required in subsection (a) or (b), the Department shall prepare a preliminary engineering study and preliminary project cost estimate.
(e) Publication. When the preliminary estimate is completed, the Department shall give notice by publication as provided in § 13-1-103. The notice shall specify the extent of the improvements; the proposed area to be served; and a time and place for a public hearing before the Director at which persons interested in the improvements may appear and present their views.
(f) Public hearing. At the time and place specified in the notice, the Director shall hold a public hearing. Persons interested in the improvements may appear at the hearing and present their views. In addition, the following information shall be presented at the public hearing: an overview of the engineering evaluation, the preliminary estimate of the project cost, the estimated cost for the preparation of the final design documents, and an estimate of the revenue required from the petitioners to make the project self-sustaining.
(g) Self-sustaining requirement. In order for the Department to proceed with final engineering, design, and construction, a project shall be self-sustaining, except to the extent the County provides a subsidy under § 13-5-816. A project is self-sustaining if the Director determines that the County will recover the net assessable amount of a project from the estimated revenues of the project within 30 years after its completion, or for projects that qualify for a partial deferral under § 13-5-815, within 40 years after its completion.
(h) Net assessable amount. After the public hearing, the Director shall determine the net assessable amount of a project by:
(1) establishing the project cost;
(2) subtracting any costs associated with making service available beyond the petition area, and any State aid, Federal aid, or any other contributions towards the project; and
(3) adding the amount necessary to reimburse the County for the estimated interest expense of the County money invested in the project, as determined by the Controller.
(i) Estimated revenues. The Director shall determine the estimated revenues of a project by dividing the net assessable amount by 30, or, for projects that qualify for a partial deferral under § 13-5-815, by 40.
(j) Assessment rate ballot. The Director shall determine the rate at which the assessments authorized by §§ 13-5-601 et seq. are required to make the project self-sustaining, and the Department shall provide an assessment rate ballot to the owners of the properties within the petition area. If the owners of a majority of the properties within the petition area vote in favor of the rate of assessment sufficient to make the project self-sustaining, the project may move forward to final engineering, design, and construction. If a property owner does not respond within the time set forth in the ballot, it shall be considered a vote against the rate of assessment.
(k) Preparation of detailed plans. If the owners of a majority of the properties within the petition area vote in favor of the rate of the assessment sufficient to make the project self-sustaining, the Director shall cause detailed surveys, plans, specifications, engineers' reports, and estimates to be prepared, and the project may proceed to final engineering, design, and construction.
(l) Abandonment by petitioners. A project shall be considered abandoned if the owners of a majority of the properties within the petition area file a counter-petition against the project any time after the Director proceeds in accordance with subsection (k) and before a construction contract is awarded for the project. A counter-petition may not be considered if received after the award of the construction contract for the project or after materials to construct the project are ordered.
(m) Costs upon abandonment. Except when the project costs increase more than 15% above the amount set forth in the assessment ballot signed in accordance with subsection (j), when a project is abandoned in accordance with subsection (l), the project costs incurred by the County, from the preliminary estimate to the time the project is abandoned, shall be certified by the Director to the County Council. Beginning with the next annual tax ordinance, the County Council shall levy, for a period of time not to exceed five fiscal years, a special assessment on real property in the petition area, at a rate sufficient to pay the project costs incurred by the County up to the time of the abandonment. If the special assessment is levied for more than one year, the rate shall include the amount necessary to reimburse the County for the estimated interest expense, as determined by the Controller. The assessment shall be collected as provided in § 1-8-101 of this Code.
(n) Decision not to proceed. The Director may decide not to proceed in accordance with this section at any stage if the service sought in a petition is not in compliance with State law, this Code, or the master plan for water supply and sewerage systems; the County is unable to acquire property required for the project; or for any other reason.
(Bill No. 79-20)