(A) General rules.
(1) The town will extend its mains and appurtenances from existing mains on the terms and conditions set forth in this section, and applicable Indiana law, or by agreement with the customer. A main extension shall be made only after receipt by the town of a signed main extension agreement that shall specify all terms and conditions, such as deposits, payment of costs, revenue refunds, treatment of subsequent connectors, and transfer of ownership.
(2) The applicant requesting a main extension shall install same in accordance with the town's specifications and transfer same to the town as the deposit under a main extension agreement. On an exception basis, the town may install main extensions through its employees or agents.
(3) The cost of a main extension to be constructed within the corporate limits of a governmental unit shall include the cost of installing public fire hydrant(s) on the main extension, if the installation of such fire hydrant(s) is required by the governmental unit.
(4) The cost of a main extension shall include all the town's costs related to the main extension and appurtenances, including but not limited to design, engineering, inspection, construction and administration costs. The town shall determine the size of main, routing, design and specifications for main extensions. All mains shall be installed in easements and, only upon town approval, may be installed in right-of-ways. The applicant shall obtain easements from the property owner or owners prior to the commencement of construction and deliver to the town prior to transfer of ownership of the main.
(B) Free extensions. Upon written request for service by a main extension applicant and receipt of a signed main extension agreement, the town shall extend a main and make the connections necessary to provide the requested service without charge if:
(1) The cost of such installation, including the cost of connecting the customer(s) to the main, does not exceed three times the estimated annual revenue from the original customer(s);
(2) Such customer(s) agree to take service within nine months following the completion date of the main extension; and
(3) The applicant provides an irrevocable letter of credit from a bank incorporated in the United States guaranteeing payment for the cost of the main extension to the town if the actual first three years of revenue from the original customers is less than the cost of the main extension. Nothing in this chapter prohibits the town, in its discretion, from making free extensions of lengths greater than as specified in this division (B) or from providing a method of return of deposits for extensions more favorable to original depositors, so long as discrimination is not practiced among depositors whose service requirements are similar.
(C) Unserved, developed residential areas.
(1) The town may make a main extension to an unserved, developed residential area ("designated area") if the owners of at least 50% of the premises in the designated area execute a deferred main extension agreement for service, on terms acceptable to the town, providing for the town's recovery of the cost of the main extension ("main extension cost") and its cost of connecting customer service lines to the main through deferred main extension monthly payments, as prescribed in the town's Rate Schedules applicable to all customers and potential customers in the designated area for 120 months following installation of the main extension. If owners of fewer than 50% of the premises in an area enter into an agreement, the town may elect not to proceed with a main extension under this rule.
(2) The total cost per customer will be determined by dividing the main extension cost by 80% of the number of potential customers in the designated area. If greater than 80% of the number of potential customers in the designated area commit initially to connecting, the total cost per customer will be determined by dividing the main extension cost by the actual percentage of customers who initially agree to connect. The total customer deposit shall be computed by subtracting three times the estimated annual revenue per customer less cost of connecting from the total cost per customer. The deferred main extension monthly payment shall be equal to the total cost per customer less a down payment of $500, divided by 120 months. The down payment shall be paid by the customer prior to the commencement of water service. The deferred main extension monthly payment shall be payable by all customers served by the main extension, shall become effective upon the placement in service of the main extension, and shall expire automatically at the end of 120 months following placement in service of the main extension. Subsequent customers in premises for which the full 120-month payments have not been made shall be responsible for payment of the remaining balance.
(3) A customer who connects to the main extension at some time subsequent to the effective date of the deferred main extension monthly payments but while the deferred main extension monthly payments remain in effect shall pay the same total customer deposit as those customers who connected initially. Prior to connection, the customer shall pay a down payment equal to $500 plus the product of multiplying the number of months for which the deferred main extension monthly payments have been applicable to the designated area times the deferred main extension monthly payment.
(4) At any time after the installation of the main extension, customers may at their option elect to pay the then-unpaid total customer deposit in full. The then-unpaid total customer deposit at any particular time is equal to the total customer deposit less down payment and less amounts paid to date through the deferred main extension monthly payments. Customers making the election to pay the total customer deposit in full, will after such payment, no longer be subject to the deferred main extension monthly payments.
(D) Special agreements. Special agreements may be required or made pursuant to Indiana law.
(Ord. 2012-9, passed 11-5-12)