A. Purpose And Scope: It is the intent of this section to provide a developer and/or owner of a tract inside the City who has paid all costs of the extension of a water main and/or sanitary sewer main with a minimum diameter of eight inches (8") water or ten inches (10") sewer or larger, and which main is so located as to render it possible for tracts of land as yet undeveloped to be served with water and/or sanitary sewer through said main, the ability to enter into a lease-purchase agreement between the developer and/or owner and the City to allow for recovering a portion of the costs of the water and/or sanitary sewer main extension by the developer and/or owner.
B. Standards And Criteria For Main Extensions:
1. All main extensions and appurtenances shall be constructed in accordance with the approved City standard specifications and approved by the Oklahoma Department of Environmental Quality.
2. All main extensions and land to be served shall be situated within the corporate limits of the City. If the tract to be served by the extension is outside the corporate limits of the City but is adjacent to or abutting, the subdivider or developer shall request annexation by the City Council under the provisions of the State Statutes.
3. Mains shall not be extended into an area until after the area to be served has been platted under the provisions of this Code. However, the developer may include the construction of the main extension with the construction plat in accordance with City codes subject to additional requirements of City Manager. Proposed construction and bid costs shall be separate and apart from the development. If the developer of a tract of land to be served by a main extension dedicates those same easements and rights-of-way as would be required during the platting process, then the above requirement for platting may be waived.
4. All mains will be constructed at the expense of the subdivider or developer desiring service, which may be either the property owner, subdivider or developer, or others desiring main installation.
5. Subdividers or developers desiring to construct main extensions under the provisions of this section shall provide additional right-of-way or easements, as required for the proper location and placement of the new mains.
C. Cost Share Agreement Procedure:
1. Prior to constructing a main extension for which the developer and/or owner desires to recover a portion of the cost of constructing the main extension, the application to participate in an agreement should be submitted, reviewed and approved by the City Council.
2. The application shall include the following information:
a. Name and address of the owner or developer making the application;
b. Plans and specifications for the main extension prepared by a licensed civil engineer and meeting the approved City codes and City standards and specifications showing the proposed location of the new main, location of existing water and sanitary sewer mains in close proximity thereto, the proposed point of connection and costs of construction including but not limited to engineering costs, off-site right-of-way and easement acquisition costs and labor and materials;
c. Legal descriptions of right-of-way and easements to be dedicated to the City and written consent to the granting of the same by all land owners affected; and
d. Payment of review fee as set out in appendix A, Schedule of Fees and Charges on file in the City.
3. Following construction of said improvements, the developer shall submit the as-built drawings, fully executed utility easements and/or rights-of-way, the certified actual costs associated with the construction of said improvements, and the final description and sketch of the defined service areas.
4. The cost share agreement must be approved by City Council prior to, or in conjunction with the approval and acceptance of the related improvements.
a. Any improvements accepted by the City Council after January 1, 2017, that would otherwise meet the requirements of this section, but for which an application for a cost share agreement was not submitted prior to construction of said improvements, may be considered by City Council for inclusion in a cost share agreement, provided that a full and complete application for same is received by the City Manager prior to December 30, 2017.
D. Cost Share Agreement: When a developer and/or owner of a tract inside the corporate limits has paid all or a portion of the cost of a water and/or sewer main with a minimum diameter of eight inches (8") water or ten inches (10") sewer or larger which is so located as to render it possible for tracts of land as yet undeveloped to be served through the main, as provided herein, a cost share agreement may be entered into by and between the developer and/or owner and the City containing the following basic provisions:
1. The developer and/or owner shall lease his interest in the main to the City for a period of twenty five (25) years, during which time the City will assume responsibility for maintenance of the main as a part of the system of the City.
2. As the City collects the cost share fee(s) for new service connections within the defined service area of the cost share agreement, said fees shall be held on account and paid to the developer and/or owner on a semi-annual basis, until the identified investment of the developer and/or owner in the main has been compensated. For water main extension, the total service area shall consist of that area and/or properties that directly abut the main and will serve said property.
For sanitary sewer main extension, the total service area of such main shall consist of that area of the sanitary sewer drainage basin flowing directly to said sewer main without benefit of any other primary sewer main as planned by the City and be defined by a licensed civil engineer and agreed upon by the developer and/or owner and the City at the time of the execution of the cost share agreement. No land area shall be included within the defined service area of more than one water and one sewer cost share agreement.
3. The developer and/or owner shall have no right or claim to any portion of the revenue received by the City for tie-on charges or service charges; the reimbursement to the developer and/or owner being specifically limited to contribution under subsections D2 of this section.
4. At such time as the developer and/or owner has been compensated, as above described, or at the expiration of the lease period set forth in the cost share agreement; the title to the respective main shall automatically vest in the City; and the developer and/or owner shall thereafter have no right, title or interest therein.
The City will not allow any connections to the main described in subsection B of this section until the required payments are made to the City. (Ord. 17-1-1, 1-9-2017)