Water and sewer extensions contracted for, and constructed, pursuant to the provisions of § 21-605, shall be subject to the following policies and practices:
(A) Requests for extraterritorial water or sewer service shall be accompanied by a petition for voluntary annexation of the property to be served. An agreement by the town to provide water or sewer service to a premises does not constitute an agreement to annex the property pursuant to the voluntary annexation petition;
(B) So as to protect the health, safety, and welfare of the public, unless technically infeasible, municipal water or sewer service will not be extended outside the town’s corporate limits unless service of both utilities to the subject property is requested, and can reasonably be provided;
(C) Applicants for the extension of water or sewer service shall accompany their petition with an offer to convey to the town such rights-of-way across property of the applicant as may reasonably be required for the project for which application is being made, and for any future extensions thereof which may reasonably be anticipated;
(D) If the town receives any state or federal grants for the extension of the proposed utilities, the cost of the project will be prorated for all parties to the original contract;
(E) After a contract, as provided in § 21-605, is executed between the town and the applicant(s), bids for actual construction will be sought. If the bids exceed the contract estimate, the applicant shall have the option of withdrawing from the contract, not proceeding with the project, and receiving a refund of his or her deposit less any expenses due to the town for services and activities rendered in connection with the proposed project; or agreeing to pay the full amount of any difference between the contract estimate and the actual bid price; or agreeing to such other modification of the project, and the contract between the applicant and the town as may be negotiated;
(F) Premises within the property owned by the applicant, or on behalf of which the applicant(s) has paid the cost of construction of a water or sewer line shall, for a period of 15 years after the water or sewer line goes into service, be exempt from the payment of access fees as provided herein. These properties shall be designated in the contract between the town and the applicant(s) by reference to tax map numbers, or other appropriate description or reference;
(G) Whenever water or sewer line extensions are made which serve properties owned by persons other than the applicant(s), the town will reimburse to the applicant(s), or the applicant(s) successor in interest, such access fees as the town may subsequently receive as a condition of providing water or sewer service to such property. However, this reimbursement shall be subject to the limitations of subsection (J)(2) below;
(H) (1) Construction cost estimates used by the Town Manager, as provided in this article, shall be per linear foot amounts, which shall be developed, and maintained, by the town as a part of the town’s fees and charges schedules. The per linear foot charges shall be developed by the Town Manager using construction cost estimates provided by the town’s civil engineering consulting firm as to actual construction costs which the town can expect to incur for the construction of the various types, and sizes, of water and sewer lines which the town is, from time to time, requested to add to its water distribution and sewerage collection systems;
(2) The per linear foot charge amounts shall include not only actual construction costs but also necessary related expenses, such as engineering charges, legal charges, right-of-way acquisition expenses, and the like. The Town Manager shall present these cost estimate figures to the Town Council annually during the budget consideration process, and the Council shall make such adjustments in the town’s per linear foot charge schedule, as may be necessary to keep those figures current with actual construction cost experienced in the area. Revised per linear foot cost figures will typically be adopted as of July 1 of each year. Once adopted, however, cost figures shall remain in effect until modified by the Council;
(I) It is the policy of the town to pay one-third of the cost of construction of water or sewer line extension projects, not to exceed one-third of the per linear foot cost amounts adopted by the Town Council, except in the case of petitions for assessment, in which case the town will pay one-third of the actual cost of the project. In situations where the estimated costs exceed the actual costs, an appropriate refund will be made, as provided in subsection (J) below; and
(J) For reimbursements:
(1) (a) Whenever a person is entitled to reimbursement under this article, the reimbursement shall be made without interest in annual installments, with the first installment due the first of August following the placement in service of the subject facility, and the satisfactory completion of any other contractual or statutory obligations of the applicant to the town;
(b) In the discretion of the town, the monies to be reimbursed shall be paid either:
1. In five equal installments; or
2. In installments equal to one-third of the revenue derived by the town from water and sewer user charges from such facilities for the year of reimbursement until the amount to be reimbursed is paid, or for 15 years, whichever comes first.
(c) The town will also reimburse to the applicant an appropriate pro-rata portion of the construction costs actually paid by the applicant when those costs are recovered by the town by means of the charging of access fees to applicants for service from the subject line. These reimbursements shall be calculated as set forth in § 21-602 (see definition of “access charges”), and in no event shall exceed the actual pro rata share of the construction costs borne by the applicant for the property to which service is subsequently provided;
(2) Reimbursements under this article shall be limited as follows:
(a) Notwithstanding any other provision of this article, except for subsection (B) above, no reimbursements shall be made unless the property in question is served with both town water and town sewer;
(b) Notwithstanding any other provision of this article, no person shall be entitled to any reimbursement for more than 15 years after a water or sewer line constructed, pursuant to this article, goes into service;
(c) An applicant shall submit a request for reimbursement to the Town manager by April 1 preceding the fiscal year in which he or she wishes to be paid those reimbursements he or she is eligible for under the terms of the contract. No reimbursements shall be paid unless the applicant has complied with the above procedure; and
(d) No reimbursements shall be made until the Director of Public Works receives, and approves, as-built drawings and dedications, or conveyances of necessary easements and rights-of-way.
(Ord. 5-89, passed 6-19-1989)