(a) Reimbursement of Original Cost.
(1) Pursuant to Ohio R.C. Chapter 729, Council may, by resolution, enter into a contract for the construction of water or sewer lines by an individual, organization or agency of private enterprise (the "applicant"). Such resolution, and any contract entered into pursuant to such resolution (a "reimbursement contract"), shall authorize the collection of prorated shares of the original cost of such improvement (the "nonparticipant charge") as provided by law. The information required to be included in the reimbursement contract may be obtained from the Sanitary Engineer.
(2) Such resolution shall be filed by the applicant with the Director of Finance, which filing shall constitute constructive notice thereof to nonparticipants in the original cost of the improvement (the "nonparticipant").
(3) The nonparticipant charge shall be based upon the front footage charge of the improvement to the nonparticipant and shall not be in excess of the amount chargeable to such nonparticipant had he or she participated in the original cost of such improvement. When construction has been completed, all costs must be submitted by the applicant to the Sanitary Engineer for verification and recommendation to Council for acceptance and approval, including the determination of the nonparticipant charge.
(4) After the nonparticipant charge is determined, a description of the properties abutting the improvement, the front footage and the amount to be paid by each nonparticipant must be approved by resolution of Council and certified to the Director of Finance for collection. Such approval shall not be granted until the applicant has deposited with the Water Division and the Sewer Division the sum of fifty dollars ($50.00) to cover the cost to the Municipality of supervision of the legal proceedings incident to such reimbursement.
(5) In any instance in which a connection is made to the improvement by a nonparticipant, the Director of Finance shall collect the nonparticipant charge for reimbursement to the applicant pursuant to the terms of the reimbursement contract.
(6) The term of a reimbursement contract shall not exceed ten years.
(7) No subsequent assignee or grantee of the applicant shall be considered a nonparticipant.
(8) Payment of the cost of construction or of the nonparticipant charge does not constitute payment of a tap in charge or connection charge, as prescribed in these Regulations, for the water supply or sewerage system to which the extension is constructed. Tap-in or connection charges must be paid by the property owner of each improved property when connection to the system is made. Payment of the nonparticipant charge, however, does relieve the property owner from payment of an equalization charge.
(b) Guarantees; Maintenance Bond. All water supply and sewerage facilities constructed by the applicant shall be guaranteed against any and all defects of workmanship and materials for a period of one year from the date of acceptance by Council. The cost of all labor, materials, tools, equipment and incidentals required to maintain, repair and replace any part of the improvement, including streets or road repairs, trench maintenance and restoration of lawns, driveways, walks, shrubs, etc., during the one-year guarantee period, shall be assumed by the applicant. As a guarantee for payment of such cost, such applicant shall remit to Council a maintenance bond in the amount of ten percent of the construction cost and in a form satisfactory to Council. At the end of the one-year period and at the written request of the applicant, the Municipality will make a final inspection of the water supply or sewerage facilities and if such improvements meet all applicable standards and requirements of the Department of Service, the maintenance bond will be released and the improvements accepted for maintenance and operation by the Municipality.
(Ord. 9-87. Passed 3-9-87.)