§ 21-605  REQUESTS FOR SERVICE; EXTRATERRITORIAL AND NON-ASSESSMENT.
   The extension of water and sanitary sewer service outside the corporate limits of the town, and anywhere within the town’s corporate limits where a qualifying petition from affected property owners cannot be obtained, shall be made as follows:
   (A)   (1)   Any person desiring to install a water or sewer line to a premises within the town’s service area to be connected to, and serviced by, the town’s water and sewer system shall make application therefor on forms designated, and provided, by the town, and shall furnish such information, or exhibits, as are required on such application forms.
      (2)   At a minimum, the application submitted shall designate the specific properties to be served with projected service requirements to the various premises therein. With such application, the applicant shall:
         (a)   Pay to the town a non-refundable application fee of $100; and
         (b)   Submit six copies of engineering plans, profiles, and specifications of such water main or sewer line, including those for any required fire hydrants, valves, manholes, sewer lift stations, force mains, or collector sewer lines necessary, in connection therewith, to the Town Manager. All plans shall bear the seal of a registered, professional engineer.
      (3)   The Town Manager will cause an estimate of the construction cost to be prepared, and will project the amount of reimbursements to be made under this article. These estimates will be included in the contract between the town and the applicant as the basis of such reimbursements. The projected construction cost estimates shall be based on the per linear foot costs as approved, and set annually, under § 21-602 (definition of “access charges”);
   (B)   In the event that the installation of water mains or sewer lines pursuant to this section is done by town forces, the cost to the town of its employees and material shall be calculated, and charged, to the project cost to be paid by the applicant, as set forth herein;
   (C)   Before the Town Council will consider any project pursuant to this article, one-third of the entire estimated construction cost, or an acceptable bank letter of credit in that amount, must be deposited with the Town Clerk;
   (D)   If the application is approved, the Town Attorney shall prepare a written contract between the town and the applicant, in accordance with the provisions of subsection (E)(5) below, and other provisions of this article;
   (E)   No water main or sewer line may be installed, and connected to, the town water or sewer system except under written contract approved by the Council, and executed by the town and the applicant. Such contract shall incorporate the substance of the following provisions:
      (1)   Installation of any water main or sewer line, including any required fire hydrants, valves, manholes, sewer lift stations, force mains, or collector sewer lines necessary in connection therewith, shall be done by town forces; by the applicant, if the applicant, under the laws of the state, is permitted to make such installations; or by a contractor of the applicant licensed by the state to make such installations. Such installations shall be done in accordance with engineering plans, profiles, and specifications approved by the Town Engineer, a copy of the same shall be endorsed as to such approval for the applicant’s use;
      (2)   The applicant shall be responsible, at his or her own expense, for the preparation of any such required plans, profiles, and specifications for obtaining approval for water and/or sewer line extensions from the State Department of Environment and Natural Resources, and any other applicable federal or state agencies, and for any other engineering fees in connection with the installation of such utilities;
      (3)   The installation of the utilities shall be subject to the inspection, and supervision, of the town during construction, and the connection thereof to the town water or sewer system shall not be made until the same shall have been tested under supervision of, and the written approval and acceptance of, such installation given by the Director of Public Works. After such approval and acceptance, the town shall thereafter repair, and maintain, the same, except the applicant shall be responsible for defects in workmanship or materials, or any non-compliance with the plans and specifications that appear within one year after such acceptance;
      (4)   Installation of utilities done by the applicant, or a contract with a licensed contractor, shall be done and completed at the sole expense, and responsibility, of the applicant, free and clear of all claims or encumbrances, within 12 months from the date of the contract; otherwise, the terms of the contract shall be null and void after the expiration of said 12-month period. In addition, the applicant shall be solely responsible that such utilities are installed within this period in accordance with the plans, profiles, and specifications approved by the town;
      (5)   The applicant shall bear the expense (including attorney’s fees and recording expenses) of the town obtaining such perpetual rights-of-way, or deeds, as shall be specified by the town for the construction, maintenance, and operation of such utilities, including any encroachment agreements that may be required from the State Department of Transportation, or a railroad or other public utility;
      (6)   Upon completion of the utilities and the connection thereof to the town’s water and sewer system, the water main or sewer line, and any fire hydrants, valves, manholes, sewer lift stations, force mains, or collector sewer lines required in connection therewith, shall thereupon, and thereafter, be the entire, and sole, property of the town, and under the sole and exclusive control of the town;
      (7)   Neither the applicants nor any other person shall be entitled to any service laterals from any water main or sewer line installed by the applicant, except upon permission of the town and the payment of any water tap, or any other water or sewer service connection charges therefor, as required by the ordinances or regulations of the town;
      (8)   If a water main in excess of six inches, or a sewer line in excess of 12 inches, shall be required by the town to provide for the expansion of water or sewer service to other properties, then the town will reimburse the applicant the difference in the cost of the pipe, or any such water main or sewer line, and the cost of six-inch water pipe, or 12-inch sewer pipe, such difference in cost to be determined by the Town Engineer, and stated in the contract. However, the town will not agree to refund any such difference if any such oversized water main or sewer line is unnecessary to serve the property of the applicant. The town shall have the right, at its sole discretion, to require the applicant to install, and pay for, without reimbursement, water lines larger than six inches in diameter, or sewer lines larger than 12 inches in diameter, for any reason related to the applicant’s property or project, such as to enable the proper extension of service to other adjacent properties owned by the applicant regardless of whether development is being proposed, and/or the need to provide adequate supply of water for fire protection. In addition, if in order to provide for the expansion of sewer service to other properties a sewer pump station larger in size or capacity than necessary to serve the properties intended to be then served by the sewer installations shall be required by the town, then the town will agree to reimburse the applicant the difference in the cost of a sewer pump station that otherwise would be adequate to serve such properties intended to be then serviced, and of the sewer pump stations required by the town to be installed, such difference in cost to be determined by the Town Engineer, and stated in the contract. Any such cost differences which the town agrees to refund shall be due, and payable, without interest to the applicant in August following the first April 1 after the date on which the utilities to be installed under the contract have been completed, and accepted and approved, by the town;
      (9)   The applicant shall agree to indemnify, and save harmless, the town from any, and all, loss, cost, damages, expense, and liability (including attorney’s fees) caused by accident or occurrence causing bodily injury or property damage arising from the installation of such utilities by the applicant, or the contractor of the applicant. The applicant, or the contractor of the applicant, shall maintain workers’ compensation coverage, as well as general liability insurance, with policy limits of not less than $500,000 per occurrence for bodily injury, and $100,000 for property damage. The applicant will furnish certificates of such insurance to the town with the provisions that the town will be given 30 days’ written notice of any intent to terminate such insurance by either the applicant, or the insuring company; and
      (10)   In the event the applicant violates any of the terms of the contract, the town shall have the right to declare all, or any, of the rights of the applicant under the contract forfeited, and to remove, and disconnect, any connections that might have been made to the town’s water or sewer system.
   (F)   Applicants for water or sewer line extensions who do the actual construction work themselves, or who contract directly with a licensed contractor, shall be entitled to reimbursement by the town for up to one-third of the cost of construction under the conditions set forth in this article, and pursuant to contract with the town;
   (G)   Where water and sewer line extensions are done by town forces, or are contracted for by the town, the applicant(s) shall, prior to the town’s committing to proceed with the project, and at the discretion of the Town Council, deposit with the Town Clerk 125% of the projected project cost, or post an acceptable bank letter of credit in that amount payable to the town. Upon completion of the project and the placement in service thereof, and the satisfactory completion of all the applicant’s contractual obligations to the town, the town will reimburse to the party(ies) paying the same, or their designee or successor, in interest up to one-third of the actual cost of the project; provided, that said reimbursement shall be made pursuant to the provisions, and conditions, of this article, and pursuant to the contract between the applicant(s) and the town; and
   (H)   (1)   Without limiting the right of the Council to disapprove, for any reason whatsoever the execution of any written contract between an applicant and the town, prepared in accordance with this article, the Council will not approve any contract for the installation of any water main or sewer line to be connected to, and served by, its water or sewer system if, in its judgment:
         (a)   The projected volume of water that would be used by any properties to be serviced thereby would unduly tax the available water supply and/or sewage treatment capacity of the town; or
         (b)   It would not be financially feasible for the town to commit itself to share in the cost of the proposed project.
      (2)   Before submitting a formal application under subsection (H)(1) above, an applicant may request from the Council an informal advisory opinion on its willingness to allow such service line extension. Such request shall be filed with the Town Manager, together with such documentation as the Town Manager deems necessary, and the Town Manager shall thereafter bring such request before the Council, pursuant to normal agenda procedures.
      (3)   An advisory opinion given by the Council shall not bind the Council to approve an application submitted thereafter, or execute any contract prepared under subsection (E) above.
(Ord. 5-89, passed 6-19-1989)