(A) All customers connecting to the public water and/or sanitary sewer system within the City of Big Rapids shall be assessed a Capital Buy in Charge at the time that service is requested. The charge shall apply to all classes of users. The Charge shall be made by a Water Invoice, which shall be paid in full before normal water or sewer service is provided to the facility.
(B) All customers that convert or expand an existing home, apartment or commercial property for additional use or occupancy shall be subject to additional connection fees as allowed in the following sections.
(C) The Capital Buy in Charge shall consist of a Connection Fee and a Construction Fee.
(D) The Connection Fee shall be as specified in the Utility Schedule of Fees, and shall be charged for each Residential Equivalent Unit (REU). REU's shall be based on anticipated water consumption, and shall be defined as 6 units of water use, or fraction thereof, per month. All single family residences shall be considered to be a single REU. All non-residential customers shall estimate the volume of water expected to be used by the customer, and shall provide that estimate to the Department at the time that service is requested. The Department shall then establish the REU's and the charge and shall notify the customer in writing of the charge and shall instruct the Treasurer's Office to issue the Water Invoice. The Department reserves the right to review water consumption annually for a five year period, and adjust the charge for the Connection Fee based on actual water consumption at any time during this period.
(E) The Construction Fee shall be established by the City Manager on a project by project basis and shall apply to initial and future customers that are or may be served by the water or sewer main. The Construction Fee shall reflect the total cost of the water or sewer main, including but not limited to engineering, design, installation, material, inspection, contingencies, legal, administrative and miscellaneous charges. The Department shall prepare, or cause to be prepared, an estimate of the project cost and shall provide the estimate to the City Manager. The City Manager shall then determine the Construction Fee and shall notify initial and future customers of the fee. When construction on the water or sewer main begins, the City Manager shall direct the City Treasurer to prepare the Water Invoice and send it to those customers that request service. The Department shall maintain a list of charges to be imposed on future customers served by the main, and the Treasurer's Office shall prepare a Water Invoice when such customers request service.
(Ord. 573-10-06, passed 10-2-06)