A. Developer's Application For Service: No individual, firm, corporation, association, or other entity developing real property within city's boundaries shall be permitted to connect onto city's water mains or to use water therefrom until a formal written application for service has been received by the city on a form provided by the city, and the city has accepted the application in writing.
1. Number And Type Of Service Connections: The application shall indicate the size and number of water connections that applicant will require, whether residential, multi-family, commercial, or industrial use is intended, and shall be accompanied with such proof as required by city's legal counsel of applicant's title to any water and water rights which applicant proposes to transfer to city. Applicant shall also submit a master plan of applicant's proposed development for review by city's engineer.
2. Application Fee: Applicant shall pay an application fee in an amount determined by the city council by resolution adopted by the city council to offset the costs of reviewing this application by city's engineers and legal counsel.
3. Commitment To Serve: The application for service may be accepted and a commitment of service letter shall be issued by city to the applicant upon a finding by the city engineer, upon recommendation of the water superintendent, that city has available water rights and water source capacity and water distribution and storage facility capacity to serve the proposed development with a year round supply of domestic and/or municipal and industrial water. The city engineer shall forward a copy of all commitment letters to the city council and inform the council of water capacities, distribution and storage limits. Denial of service may be appealed to the city council in writing within ten (10) days of the denial.
a. The finding of available water rights may be based upon either water rights and sources owned or controlled by city or upon water rights owned by the applicant that are to be transferred to city in lieu of payment of the water rights development fee as provided by this section.
b. The finding of available water distribution and storage system capacity shall be based either upon the existing system capacities of city, or, upon the expansion and extension of the main transmission system and the augmentation of storage capacity constructed by applicant and transferred to the city in lieu of applicant's payment of the water system development fee as provided by this section.
4. Water Rights Development Fee/Donation Of Water Rights: All applicants seeking water service from city for their development project shall either pay a water rights development fee in order to cover the capital costs incurred by the city in acquisition of water rights and the development of water sources, or, in the city's sole discretion, the developer shall donate water rights to the city.
a. The water rights development fee shall be established by the city council by resolution and shall be due and payable upon the acceptance of applicant's application for water service.
b. Applicant may donate water rights in lieu of payment of the water rights development fee. Acceptance of the offered water rights shall be at the sole discretion of the city and shall be conditioned upon applicant's compliance with the conditions precedent of subsection B of this section. Upon legal transfer of the donated water rights, all or a portion of the water rights development fee may be waived.
c. Where no water rights are donated and the water rights development fee is paid, the city shall allocate a portion of the water rights development fee paid per unit to a water source development account. These funds shall be used by city to proportionately offset its costs in developing new wells and other sources of water supply as required by city to meet the increasing source demand requirements created by new developments. The remaining portion of the water rights development fee shall be used to acquire water rights to serve applicant's development.
5. Water System Development Fee: In addition to the donation of water rights and/or the payment of a water rights development fee, applicant shall also pay a water system development fee in an amount to be determined by the city council by resolution on each unit of system capacity demand required by applicant to provide the requested water service to applicant's development. The fee is required to offset the capital costs incurred by city in constructing or extending the main transmission system required to provide service to applicant's development.
6. Development Fees Subject To Change: Both the water rights development fee and the water system development fee are subject to change from time to time by resolution of the city council.
B. Conditions Precedent To Service Of Developments: Each applicant requesting water service to a residential development, or commercial or industrial development within the city, must comply with all of the following conditions precedent in order to obtain water service from city, unless compliance is expressly waived by city in writing:
1. Water Rights For Development: Applicant shall either pay the water rights development fee imposed by the city or, at the discretion of the city, donate water rights in lieu of payment of these fees as provided herein. Any donated water rights must be approved by the city engineer for year round use for municipal, domestic or industrial purposes, prior to their donation to the city. The water rights as approved must be of sufficient quantity and quality to satisfy the current state division of drinking water standards and its rules and regulations for applicant's intended use. Applicant shall obtain state engineer approval for the year round use of this water right before the water right may be accepted by city.
2. Transfer Of Title Of Donated Water Rights: Applicant shall transfer to city without cost, and by an appropriate instrument of conveyance acceptable in form to city upon review of city's legal counsel, title to applicant's water rights free and clear of all liens and encumbrances, except as may be expressly approved and accepted by city. Thereafter, city shall appear as the record owner of the water rights involved. The water shall then be commingled and become a part of the water rights and water supply for city through which all of its customers will be served, including applicant's development.
3. Water System Extensions: Applicant shall either pay the water system development fee or construct at its expense and donate any required main transmission system extensions as provided by this section. The improvements to the city's main transmission system shall be limited to those required to serve applicant's development, and shall be constructed in accordance with city's approved specifications. All excavation and construction activities shall be subject to city's engineer's inspection, approval and acceptance prior to interconnecting these extended facilities with city's existing facilities, to ensure that the extended and expanded system will be compatible with the existing facilities.
a. The city may, in its sole discretion, deem it necessary to construct excess capacity into an extended main transmission line or storage capacity to facilitate service to anticipated future customers in the immediate area. In that case, applicant shall pay for only the capacity required for applicant's property. The city shall either pay for the excess capacity constructed into the extended line under a separate cost participation agreement or require applicant to initially bear the entire expense under a line extension agreement with city, which agreement shall govern the manner and timing of partial reimbursement to applicant as other third parties connect onto and receive service from the extended line and other facilities. Applicant shall be reimbursed only for the incremental costs incurred in constructing the main transmission system capacity in excess of applicant's needs. Applicant will be required to pay for the minimum capacity required by applicant in these facilities.
b. Applicant shall install the extended main transmission system to a point prescribed by city in accordance with acceptable plans and specifications, to facilitate the orderly development of the next contiguous tract of land.
4. Subdivision Improvements: Applicant shall construct at its sole expense the internal or on site water distribution system required to serve the individual consumers within applicant's subdivision or development, including all booster pumps, on site storage, and other appurtenant facilities. The internal water distribution system shall be constructed in accordance with the city's specifications. Any booster stations and storage facilities shall be placed at elevations which will be compatible with booster pumps, storage facilities and pressure zones already existing or which may now or are proposed as a part of the main water distribution system. Service shall not be provided through these improvements from city's main transmission system until the improvements are inspected and approved by city's engineers and accepted by city.
5. Pipeline Easement Locations: Where possible, provision shall be made for the construction of all line extensions and distribution lines within public streets and easements. However, where the lines must cross private property, applicant shall obtain at applicant's sole expense all required and necessary easements in satisfactory and recordable form. Title to any required storage, pump station or other facilities along with the perpetual rights of ingress and egress for operation, maintenance, repair and replacement of the same, shall be transferred to city.
C. Transfer Of Title: Upon compliance with the conditions precedent of subsection B of this section, applicant shall convey to city, free and clear of all liens and encumbrances, except for those specifically agreed to in writing by city, and by an instrument acceptable to city, the following items:
1. Any extension of city's main transmission system constructed by applicant and donated to city as provided in this section, together with all necessary pipeline easements and rights of way for the operation, maintenance, repair and replacement of the same;
2. The internal subdivision distribution system and all appurtenant facilities, specifically including, but not limited to, all distribution lines, pumps, storage facilities, booster pumps, and any required treatment facilities, together with all appurtenant easements and rights of way for the operation, maintenance, repair and replacement of the same;
3. Title to all storage and well sites, together with any and all easements and appurtenances in connection therewith, including any required protection zone easements to protect water sources, pipeline and utility easements and rights of way;
4. Title to any water and water rights donated to city as provided herein;
5. Where any shares or water rights conveyed to the city by the applicant are inadequate to meet the requirements herein provided, the applicant shall pay the water rights development fee in an amount set by the city and such payment shall be made to the city as a condition of approval for development within the city;
6. In the event the applicant is not required to furnish the total amount of water that has historically been used on the developed parcel of land, the city shall have the first right of refusal to purchase the remaining shares or water rights which shall be set forth in writing and in recordable form and may be recorded by the city in the office of the county recorder; and
7. All water shares or water which may be held either by the city or by any political subdivision created by the city to operate and maintain the city's water system, including, but not limited to, a special service district, and thereafter the city's or political subdivision's designee shall have the right to vote any water shares held by the city or the political subdivision created by the city in accordance with applicable rules and regulations governing the same. (Ord. 961, 2-1-2011)