(A) The Waterworks Department of the town may, upon written request by a prospective customer or a group of prospective customers located in the same neighborhood, make free of charge an extension necessary to give service when the estimated total revenue, for a period of three years, from the prospective customer or customers is approximately equal to the cost of the extension; provided that, the prospects agree that the patronage or demand will be of such permanence as to warrant the capital expenditure involved.
(B) (1) If the extension required in order to furnish service at any point within the corporate limits, or any adjacent territory, is greater than the free extension specified herein, such an extension shall be made under the following conditions: the town shall require a deposit of the cost of the extension above the free limit and shall in such case, for each additional customer connected to the said extension within a period of eight years from the making of such extension, refund an amount of which six times the estimated annual revenue of the new customer exceeds the cost of connecting such new customer, but at no time shall the aggregate amount of refund made to any customer exceed the original deposit of such customer.
(2) If the extension is of such length, and the prospective business which may be developed by it is so meager as to make it doubtful whether the business from the extension would ever pay a fair return on the investment involved in such extension, or in the case of real estate development enterprise with slight or no immediate demand for service, or in the case of industrial installation requiring extensive equipment with slight or irregular service, the facts shall be reported to the Town Council for investigation and determination of the reasonableness of such extension or installation and the conditions under which it shall be made.
(C) In estimating the cost of an extension, the estimate shall be based on the diameter of the pipe to be used; provided, however, the estimated cost to the customer or customers shall not be based on a pipe diameter in excess of four inches, unless actual consumption estimated for the proposed customer or customers shall require a larger pipe.
(D) Water main and line extensions located, or to be located in streets or alleys, or to be maintained by the town, shall be of cast or ductile iron pipe equal to or better than Class 50, of a size determined by the Superintendent of Public Works to be adequate to serve the planned expansion.
(Prior Code, Title V, Ch. I, Art. III)