(A) If any person desiring service from the Utility requests a water main extension, that person shall pay for the cost of the extension. The purpose of this requirement is to place the cost of the installation of local water mains upon the owners of the properties benefitted. Water transmission mains, feeder mains and over-sizing of local water mains will be paid for by the Utility providing funds are available. The term LOCAL WATER MAIN means a main, which from its size and character, is designed and intended to supply water needs, with adequate volumes and pressures only for properties abutting the street, alley, easement or other public land in which the main is laid but which is not designed and intended to feed collateral mains necessary to supply non-abutting properties.
(B) This extension requirement shall be subject to the specific provisions of the following division:
(1) Free extensions. The Utility shall, upon written request for service from a prospective customer or a group of prospective customers located in the same neighborhood, make free of charge an extension necessary to give service to the petitioning prospective customers when the total estimated revenue for a period of six years, from the prospective customer or customers is approximately equal to the cost of the extension, if, in the judgment of the Utility, the patronage or demand for water service shall be of a permanent nature warranting the expenditure involved.
(2) Extension above free limit. If the extension required in order to furnish service at any point within the city limits, or for any suburb adjacent or contiguous to those limits, is greater than the free extension specified in this division, that extension should be made if:
(a) Petition for service. Upon the presentation of a written petition for water service by an interested person or persons, the Utility shall enter into an agreement with those petitioners covering the necessary main extension, describing the installation, the method of apportioning costs among the petitioners, the total estimated cost if possible and other relevant facts and undertakings. This agreement shall contain a statement by the petitioners that they are willing to pay their proportionate share of the main extension if the project is constructed. Detailed engineering design shall not proceed if the petitioners do not agree to pay the necessary cost of the extension over and above the free limit as described in this division. The petition shall be valid for one year. An extension of time may be granted by the Utility. Preliminary engineering investigations shall be conducted at the Utility's expense for the benefit of petitioners. If those investigations require an excessive amount of time and cost in the judgment of the Utility Manager, a charge shall be applied to cover the cost prior to that initiating work.
(b) Engineering and detailed cost estimate. When the petitioners agree in writing to pay their proportionate share of the main extension, the Utility shall conduct the necessary field survey work and engineering design resulting in a detailed engineers' estimate of the cost of the project. Based upon the engineers' estimate, the project cost shall be allotted proportionately between the petitioners.
(c) Contract for service. Upon completion of the engineers' estimate, the Utility shall enter into a water main extension contract with said petitioners, which shall include a description of the installation, the estimated cost, the method of apportioning costs among the petitioners, and an arrangement for payment and other relevant facts and undertakings.
(d) Initial deposit. Prior to advertising for bids or starting construction as the case may be, the petitioners shall be required to deposit their share of the cost of the main extension with the Utility. The total initial deposit may be either in a cash payment or by an irrevocable letter of credit acceptable to the Utility and issued by a national banking association or a bank chartered under state law or secured in any other manner which is mutually acceptable to the parties and which guarantees payment of the deposit immediately upon completion of construction of the extension. When the total initial deposit has been made, the Utility shall advertise for bids on the project, award the bid and begin construction. Upon receipt of firm bid prices, the estimated project cost shall be adjusted to actual and the cost to the petitioners adjusted accordingly.
(e) Cost basis. The amount to be paid by petitioners for a main extension shall be the total costs of contractual labor and expense, utility labor and expense, material including handling charges and hauling costs, inspection, testing, disinfecting, overhead and engineering. Where feasible, petitioners may, by agreement with the Utility, furnish all or part of the foregoing cost elements, except inspection and testing. All those cost elements furnished shall conform to the standards of the Utility and the Utility shall be given certified statements of the actual costs of those elements paid for by the petitioner.
(f) Engineering and over-sizing. Main extension design and specifications shall either be prepared by the Utility Engineering Department or be approved by the Utility Engineer before installation by others. No pipe size smaller than that required to give that party an adequate supply of water including water for fire protection, nor less than eight inches in diameter shall be used, unless in the Utility's opinion, that installation shall not materially improve the flow characteristics of the system. If the design for future use or other engineering considerations indicate the need for a water main larger than eight inches, then the Utility shall assume the cost for over-sizing if funds are available. The computation of cost, either actual or estimated, shall be based on an eight inch main, unless a larger or smaller main as determined by the Utility, is reasonably necessary to serve the proposed customer or customers, including fire protection service. In this event the cost, estimated or actual, shall be based on the size of main required.
(g) Ownership of mains. After completion and acceptance by the Utility, the water main extension shall become the property of and shall be maintained by the Utility. The Utility may connect additional water mains to an extension without incurring any financial obligations to persons sharing the cost of the first extension.
(h) Refund provision. The contact between the Utility and the original petitioners shall provide that any person who did not share the original cost of the extension and who wishes to use the extension within 15 years from the date of the acceptance of that extension shall be required to pay a fair and proportionate share of the original cost of the extension. The amount of the share collected from such new customer shall be based on a fixed connection charge as follows:
TAP SIZE | CONNECTION FEE |
TAP SIZE | CONNECTION FEE |
3/4 inch connection | $800 |
1 inch connection | $1000 |
1-1/2 inch connection | $1200 |
2 inch connection | $1400 |
2-1/2 inch connection | $1600 |
3 inch connection | $2000 |
4 inch connection | $3000 |
6 inch connection | $4000 |
8 inch connection | $6000 |
10 inch connection | $8000 |
12 inch connection | $10,000 |
This additional share shall be refunded equitably to the original depositors annually or more frequently at the discretion of the Utility. The total amount refunded shall not exceed the amount of the original cost of the extension.
(i) Exclusion of new subdivisions.
1. New subdivisions shall be excluded from eligibility for refund agreements. The developer shall pay the entire cost of the necessary water main construction and recover the cost in the lot price.
2. Water main extensions from the terminus of existing water mains to the subdivision, which would be subject to future connections, are eligible for refund agreements.
(j) Recording extension contracts. To insure collection of share and connection charges for those providing funds for local water main installations, the Utility shall file the original water main extension contracts with the County Recorder.
(k) Waiver of protest to annexation. Petitioners for water main extensions and water service outside the city limits shall be required to execute a written agreement that the owner and his or her successors in title and assigns waive any rights to remonstrate against or otherwise object to, interfere with or oppose any pending or future annexation by the city as a condition of receiving that water main extension and water service for that property.
(l) Lateral extensions. The Utility may connect additional water mains to an extension without incurring any financial obligation to person sharing the cost of the first extension. However, the Utility shall not permit a prospective customer whose property is contiguous to the first extension to obtain service from an additional extension installed laterally from that first extension unless the customer pays a proportionate share of the cost of the first extension. The Utility shall collect in advance from the owner of that property a fixed connection charge as follows:
TAP SIZE | CONNECTION FEE |
3/4 inch connection | $800 |
1 inch connection | $1000 |
1-1/2 inch connection | $1200 |
TAP SIZE | CONNECTION FEE |
2 inch connection | $1400 |
2-1/2 inch connection | $1600 |
3 inch connection | $2000 |
4 inch connection | $3000 |
6 inch connection | $4000 |
8 inch connection | $6000 |
10 inch connection | $8000 |
12 inch connection | $10,000 |
This additional lateral connection fee shall be refunded to the original depositors annually or more frequently at the discretion of the Utility. The total amount refunded shall not exceed the original cost of the extension.
(1985 Code, § 36-9-2-14(y)) (Ord. 4-1980, passed 3-18-1980; Am. Ord. 32-2006, passed 9-19-2006)