(A) Unless the City Council for good cause determines otherwise, any applicant for water service in any part of the city water service area in which no city water main exists, upon making such application, shall deposit with the city an extension fee in such amount as the city shall determine from time to time. Such deposit shall be a non-refundable fee intended to cover preliminary costs applicable to the proposed extension main, including, without limitation, engineering and design fees and costs, and costs of compliance with CEQA. As more particularly described below, such non-refundable fee shall apply as a credit if the extension main is constructed. The burden of proving good cause under this section shall be on the applicant.
(B) Upon receipt by the city of an acceptable bid for the construction of the extension main, the city shall credit the deposit paid pursuant to this section against the total cost of the extension main, which cost shall include, without limitation, engineering and design fees and costs, costs of compliance with CEQA, inspections and the amount paid to one (or more) contractor(s). If the deposit exceeds the actual cost of the construction of the main, such excess shall be refunded, without interest, to the applicant who paid the deposit. If the deposit is less than the actual cost of the construction of the main, the applicant shall pay the city upon demand the difference between the actual cost of construction and the amount of the deposit, and any building or other permits the city issues the applicant concerning the proposed project shall be conditioned on the payment of any such difference. Unless the city otherwise agrees, the city shall construct or cause to be constructed the water main necessary for the proposed project.
(C) Unless the City Council for good cause determines otherwise, if other applicants request water service in the area served or to be served by an extension main before, during or after its construction has been completed, such applicants shall pay a fee or charge computed by the city in one of the following methods:
(1) Property located between existing main and terminus of extension main. If an applicant’s property is located between the original point of diversion from the existing main and the terminus of an extension main constructed or to be constructed pursuant to divisions (A) and (B), the applicant’s fee shall be equal to a pro rata share of the cost of constructing the extension main, which pro rata share shall be determined as follows:
(a) The front footage between the original point of diversion from the city's existing water main and the outermost boundary of such applicant’s property shall be divided by the total footage of the extension main under public or railroad rights-of-way;
(b) The above quotient, in turn, shall be divided by the total number of applicants obtaining water service from the extension main between the original point of diversion from the existing main and the outermost boundary of such applicant’s property; and
(c) The quotient id division (b) above shall be multiplied by the total cost of constructing the extension main.
(2) Property located beyond terminus of extension main. If an applicant’s property is located beyond the terminus of an extension main, and such applicant’s service will require additional extension of the extension main, such applicant shall pay a fee equal to the sum of:
(a) The cost of constructing such additional extension as determined pursuant to divisions (A) and (B); and
(b) Such applicant’s pro rata contribution to the cost of constructing the extension main constructed or contributed to by prior applicants, which pro rata share shall be calculated by dividing such cost of construction by the total number of applicants obtaining water service from such extension main after the city has accepted the additional extension as part of the water system.
(3) Burden of proof. The burden of proving good cause to avoid paying a fee calculated under either divisions (A) or (C) above shall be on the applicant.
(D) Any applicant that has paid fees pursuant to this section shall be entitled to reimbursement from the city as follows. The amount of the reimbursement shall be the difference between the amount of such applicant’s fees actually paid and such applicant’s pro rata share of the cost of constructing the extension main from the original point of diversion from the existing main to the outermost boundary of such applicant’s property, which pro rata share shall be determined pursuant to division (C); provided, however, the applicant shall not be entitled to reimbursement for more than such applicant paid in fees to the city; and provided further, no applicant shall be entitled to reimbursement more than 10 years after the date the city accepted the extension main as part of the water system.
(E) If after the city’s acceptance of an extension main or of an additional extension the city is required to extend the water main to correct water system problems arising from or related to such extension, and if the cost of such correcting extension exceeds any amount which an applicant would otherwise be entitled to receive as reimbursement pursuant to division (D), the city shall not be required to pay such reimbursement to such applicant.
(Ord. 1291, passed 2-7-01)