(a) This section will apply to territory within the corporate limits of the City as the same may be changed from time to time.
(b) This section will apply to requests for water or sewer service to acreage that has already been developed at the time of the request and which will require a main extension to provide the service. To the extent the City extends its mains pursuant to the terms of this section, the City shall extend both water and sewer mains and the customers affected shall be responsible for the pro rata share and the main extension surcharge for both water and sewer service except to the extent the area already has service available from another utility service provider.
(c) In the event that individual homeowner(s) residing in already-developed acreage wish to be served by City water or sewer requiring construction of main extensions, the following procedures shall be followed:
(1) Upon written request for a main extension from the subdivision president and/or board of directors, the City's Utilities Department shall develop a preliminary design and construction cost estimate for the project which shall include both water and sewer service (the "Project Costs").
(2) The Utilities Department shall provide each homeowner whose property has frontage along the proposed main extensions with a project costs estimate that includes availability and connection fees, construction costs, engineering fees, project legal fees and easement right-of-way costs, all of which comprise the total project costs. Such notice shall also provide each homeowner with his/her pro rata share of the project costs, determined by dividing project costs by the number of lots with frontage along the proposed main extensions (the "Pro Rata Share").
(3) Each homeowner wishing the project to proceed shall then sign an agreement stating the the homeowner has notice of and understands that project costs and is agreeable to the main extensions pursuant to the terms of this section. The homeowner shall agree that he/she desires the project to proceed and, after the project is complete, he/she will pay the pro rata share as calculated pursuant to this section. This agreement must be signed by greater than 35% of the homeowners with frontage along the main extensions in the affected subdivision, or by each homeowner on already-developed acreage that is not part of a platted subdivision, prior to the final preparation of plans and advertisement for project construction bids.
(d) Upon receipt of the requisite number of signed agreements, the City will proceed to extend the water and sewer mains to provide the requested service. All customers with frontage along the main extension will be obligated to pay the pro rata share upon the placement in service of the main extensions. This section does not require that any customer connect to the main extensions, only that they pay the pro rata share as provided herein.
(e) The City will defer and recover over time each customer's pro rata share with the implementation of a main extension surcharge as determined pursuant to this paragraph. The main extension surcharge shall be calculated by dividing the pro rata share over up to 360 months together with carrying cost calculated at a reasonable interest rate at which it is estimated that City would pay if it were to borrow the funds for the project. The main extension surcharge shall be in addition to the general water and sewer rates and charges imposed by the City. The customer shall commence paying the main extension surcharge upon the first month following the placement in service of the main extensions, regardless of whether the customer is actually connected. The obligation to pay the main extension surcharge shall run with the land and be binding on predecessors in title. The City shall cause to be recorded for any property subject to a main extension surcharge appropriate documentation to place future purchasers on notice.
(f) Any customer wishing to do so may prepay without penalty the pro rata share then outstanding and thereby avoid future main extension surcharges and carrying charges.
(Ord. D-1635-03, § I - VI, 7-21-03)