In circumstances where a developer is required to construct and invest in facilities which can partially benefit future development, the City may enter into rebate agreements, payable from fees collected from future developers or customers, in the circumstances described below. Rebate agreement forms are available from the City.
(1) Adjacent developments.
a. When a developer is required to install distribution/collection mains in a street or easement bordering his or her tract – so that future development on the other side of the street or easement can directly obtain service through the subject lines.
b. The rebate amount will be assigned to the opposite side from the developer or owner on a unit front-foot basis, as approved by the City. Customers applying to tap the subject line shall pay the applicable rebate costs prior to tapping.
(2) Connecting lines. Where a proposed development is not contiguous to existing development, the City may require the developer to construct intervening connecting water or sewer lines. In this case, the City will set an amount for maximum rebate, being the approved actual cost of the connecting line. This rebate amount will be assigned to owners of the intervening property if, in the opinion of the City, the intervening owners can make reasonable use of the line in the future. Future developers or customers in the intervening area shall be required to rebate the actual cost, or a prorated portion thereof, before connecting other mains or services to the subject line.
(3) Oversize. Where the City requires that a line be oversized for future users, the City may pay for oversize directly. However, if the Board of Trustees determines it infeasible to participate immediately in such rebate, the cost of oversizing shall be paid from system development fee income obtained from future customers located in an area determined by the City to have benefited from the oversize pursuant to an oversizing agreement approved by the Board of Trustees.
(4) Rebate amounts. Where the developer did not have the facilities installed after advertised bids, the actual cost shall be as estimated by the City Engineer and approved by the Board of Trustees. In case of disputed eligibility of costs, the Board of Trustees' decision will be final. In case of disputed method of rebate, a rational proposal shall be prepared by the City Engineer and approved by the Board of Trustees; the Board of Trustees' decision shall be final. No interest shall be allowed when determining rebate amounts.
(5) Rebate periods. A rebate agreement will be made for a maximum period of ten (10) years from the date of facilities acceptance.
(Ord. 334 § 6.2, 2005; Ord. 347 §1, 2008))