1. Upon request for service by one or more applicants, the territory will be surveyed and an estimate prepared on the construction cost of the necessary extension. This estimate will be used to determine the total minimum revenue to be guaranteed. On this basis, the estimated amount for each applicant will be written into his application which, when signed by him and accepted by the Penn Township Water District, will constitute a contract for the taking of service under this extension rule. Upon the completion of the extension, estimated figures shall be revised to agree with the actual cost of construction. The Penn Township Water District shall not be required to start construction on any extension until applications have been signed and accepted covering the entire amount of the guaranteed revenue which shall be payable from the date service is first furnished or offered to consumers.
2. The Penn Township Water District, in order to safeguard its investments, may require any applicant consumer to establish a satisfactory credit standing as a guarantee of the payment of his bills during the term of the contract, or in lieu thereof, making a cash deposit or give other form of acceptable guarantee.
3. All extensions where the Water District's estimated cost of construction, based on four inch cast iron pipe, does not exceed $100 per consumer or where the applicants supply sufficient money, material and labor to reduce the cost of construction per consumer to $100, the Water District will construct such extension without requiring a guaranteed minimum revenue other than the minimum charge prescribed in the applicable rate schedule.
4. Where the actual cost of construction after applying credits exceed $100 per customer, the total minimum revenue to be guaranteed from each extension shall be an amount equal to 12% of the total cost of construction. This total guaranteed amount will be divided equally among all customers applying for service on such extension and the amount thus obtained where thereupon will become the minimum annual charge for each consumer payable semiannually. The minimum guaranteed revenue of any consumer shall no be less than the minimum charge as determined by the rate schedule.
5. Any additions to extension constructed under the provisions of subsection (4) above, for the purpose of serving additional consumers, shall be added to the original cost of construction and reapportioned among the several consumers; provided, that the inclusion of such additional costs and consumers will not increase the average minimum of existing consumers; otherwise any extensions constructed to serve such additional consumers shall be treated as a new and separate extension requiring a guaranteed minimum as provided in the preceding subsection.
6. Extensions of the distribution system shall be carried in the direction of the extension at least to the centerline of the lot being served except that in the case of street corner lots, the extension shall be continued to the center of the intersecting street.
7. In computing charges for the extension of water mains in a direction transverse to existing mains, an extension of 50 feet made be made at intersections.
(Ord. 1, 12/26/1952)