(A) Written contract for certain development projects. No water main or sewer line may be installed and connected to the town water or sewer system within town, except under written contract approved by the Town Board and executed by the town and the applicant for the two development projects identified in and subject to the provisions of § 5.2 and Exhibit H of the interlocal agreement dated 5-10-2011 between the town and the City of Gastonia. The town contract for these specific projects shall incorporate the substance of the following provisions.
(1) Installation of any water main or sewer line including any required fire hydrants, valves, manholes, sewer lift stations, force mains or collector sewer lines necessary in connection therewith, shall be done by the applicant, if the applicant under the laws of the state is permitted to make the installations, or by a contractor of the applicant licensed by the state to make the installations. The installations shall be done in accordance with engineering plans, profiles and specifications approved by the Town Manager, a copy of the same shall be endorsed as to the approval for the applicant’s use. The applicant shall be responsible, at his or her own expense, for the preparation of any required plans, profiles and specifications, for obtaining approval for sewer line extensions from the state’s Department of Natural Resources and Community Development, and for any other engineering fees in connection with the installation of the utilities.
(2) The installation of the utilities shall be subject to the inspection and supervision of the town during construction, and the connection thereof to the town water or sewer system shall not be made or maintained until the same shall have been tested under supervision of and the written approval and acceptance of the installation given by the Town Manager. After the approval and acceptance, the town shall thereafter repair and maintain the same, except the applicant shall be responsible for defects in workmanship or materials or any non-compliance with the plans and specifications that appear within one year after the acceptance.
(3) Installation of the utilities shall be done and completed at the sole expense and responsibility of the applicant, free and clear of all claims or encumbrances, within 12 months from the date of the contract; otherwise, the terms of the contract shall be null and void after the expiration of the 12-month period. In addition, the applicant shall be solely responsible that the utilities are installed within this period in accordance with the plans, profiles and specifications approved by the town.
(4) The applicant shall, at his or her expense (including attorney fees and recording expenses) obtain for or provide to the town the perpetual rights-of-way or deeds as shall be specified by the town for the construction, maintenance and operation of the utilities, including any encroachment agreements that might be required from the state’s Department of Transportation or a railroad or other public utility.
(5) Upon completion of the utilities and the connection thereof to the town water and sewer system, the water main or sewer line and any fire hydrants, valves, manholes, sewer lift stations, force mains or collector sewer lines required in connection therewith, shall thereupon and thereafter be the entire and sole property of the town and under the sole and exclusive control of the town.
(6) Neither the applicants, nor any other person, shall be entitled to any service laterals from any water main or sewer line installed by the applicant, except upon permission of the town and the payment of any water meter or any other water or sewer service connection charges therefor as required by the ordinances or regulations of the town.
(7) If a water main, sewer line, sewer force main or collector line shall be required by the town in excess of eight inches in size to provide for the expansion of water or sewer service to other properties, then the town will agree to reimburse the applicant the difference in the cost of the pipe for any water main, sewer line, sewer force main or collector line in excess of eight inches in size. The difference in cost is to be determined by the Town Manager and stated in the contract. However, the town will not agree to refund any difference if any water main or sewer line in excess of eight inches is necessary to serve the property intended to be then served thereby. In addition, if in order to provide for the expansion of sewer service to other properties a sewer pump station larger in size or capacity than necessary to serve the properties intended to be then serviced by the sewer installations shall be required by the town then the town will agree to reimburse the applicant the difference in the cost of a sewer pump station that otherwise would be adequate to serve the properties intended to be then serviced and of the sewer pump stations required by the town to be installed, the difference in cost to be determined by the Town Manager and stated in the contract. Any cost differences which the town agrees to refund shall be due and payable without interest to the applicant in August following the first May 1 after the date on which the utilities to be installed under the contract have been completed and accepted and approved by the town.
(8) The applicant shall agree to indemnify and save harmless the town from any and all loss, cost, damages, expense and liability (including attorney’s fees) caused by accident or occurrence causing bodily injury or property damage arising from the installation of the utilities by the applicant or the contractor of the applicant. The applicant shall maintain workers compensation coverage as well as general liability insurance with a contractual coverage endorsement and automobile liability insurance with policy limits of not less than $500,000 per occurrence for bodily injury and $100,000 for property damage. The applicant will furnish certificates of the insurance to the town with the provision that the town will be given 30 days’ written notice of any intent to terminate the insurance by either the applicant or the insurance company.
(9) The contract shall be conditioned on the applicant complying with all zoning and subdivision ordinances and regulations of the town that are applicable to any properties to be serviced by the utilities, and also any ordinances or regulations of the town for the operation, control, maintenance and protection of the water and sewer systems of the town.
(10) In the event the applicant violates any of the terms of the contract, the town shall have the right to declare all or any of the rights of the applicant under the contract forfeited, and to remove and disconnect any connections that might have been made to the town’s water or sewer system.
(11) For town home, condominium or other similar multiple-unit developments, the town may, in its discretion, allow master water meters for such developments; provided that:
(a) A properly constituted homeowners association with valid and enforceable assessment or other funding powers exists or is created by the developer;
(b) The homeowners association will bill homeowners monthly for water and sewer charges and payment to the town of all such charges will be the homeowners association’s responsibility;
(c) The homeowners association will, as an exception to division (C)(5) above, retain private ownership of and will have sole maintenance responsibility for the water lines from the master water meter to the living units; and
(d) Original and subsequent purchasers of living units will be notified by the developer or subsequent owner prior to purchase that the homeowners association will be responsible for maintenance and billing, and can assess owners for such costs, such notice to be in the deed or other recorded notice in the chain of title.
(12) For the agreement designated development projects, the town may, in its discretion, reduce or waive altogether the water and sewer access fees and negotiate other applicable fees, in effect in the code of ordinances and fee schedules based upon the estimated costs and other installation and maintenance requirements in extending water and sewer to the development and may, in addition to assessment at issuance of the zoning permit, assess such access fees, if any, to the developer at other scheduled milestones of the project.
(B) Town Board approval. Without limiting the right of the Town Board to disapprove for any reason whatsoever the execution of any written contract between an applicant and the town prepared in accordance with this chapter, the Board may not approve any contract for the installation of any water main or sewer line to be connected to and served by the water or sewer system if, in its judgment, the utility service would be in adequate to town residents or the proposed financial fees would be inadequate and detrimental to the interests of the town.