(A) The Department may recommend to the Council the acceptance of a specific water service area and the establishment of an area-specific water extension fee if:
(1) An applicant for a permit to construct and extend a water main requests that the Department approve construction of a water main with a capacity in excess of the size required to serve his or her development.
(2) The Department finds that such construction is:
(a) In accordance with the water service plan of the town;
(b) In the public interest; and
(c) That the water main extension would have sufficient capacity to serve property not owned by applicant.
(3) The owner of the development submits plans and specifications for construction of the water system in that service area to the Department for review and approval.
(B) The Department may establish a specific water service area and an area-specific water system extension fee. A specific water service area and/or fee shall contain the following:
(1) A description or map showing the specific water service area;
(2) The cost of construction and installation of the water system and related facilities or a method to determine those costs; and
(3) A requirement that all landowners or other persons who connect to the water system extension shall pay to the Department an amount equal to their pro rata share of the connection fee or a fee based on acreage or another appropriate method approved by the town. These payments will pay for the cost of the supply, the distribution system and related facilities and administrative costs of the Department incurred in administering the specific water service area.
(C) Prior to connection of the water system mains to the water system extension and area-specific water main, the Department may require such persons to pay their pro rata share of the cost as set forth in division (B)(3) above.
(D) Upon the recommendation of the Department, the water system may advance a portion, or all, of the costs of construction of a water system extension with a capacity to serve a specific water service area and may establish an area-specific water system extension fee pursuant to division (C) above. The area-specific water system extension fee shall be utilized to reimburse the Department for the cost of construction of the water system extension.
(E) (1) Water system extensions may be granted by the Department at no cost to the user based on the financial viability of the extension and the projected user fees to be collected from additional system users connected to extension.
(2) A water system extension is generally determined to be financially viable if that extension generates sufficient demand and subsequent connection fees and monthly user fees to cover associated development costs, debt retirement and its pro rata share of operation and maintenance costs as determined by the Department.
(F) If the developer is required to pay for an oversized water system in order to facilitate future connections between the town system and the newly developed property, the town will enter into a development agreement with the developer which will outline reimbursement for the cost of the oversized portions of the system.
(Prior Code, § 17-1-8) (Ord. 96-03, passed - -1996; Res. 96-01, passed - -1996; Ord. 10-02, passed - -2010)