(A) Extensions to approved subdivision or developed property.
(1) (a) When application is received requesting the extension of water or sanitary sewer service or both to serve property within the corporate limits which is developed or has been previously approved as a subdivision, or where streets have previously been dedicated and accepted by the town, and where the area is not part of a new subdivision which has not been approved by the town, the Town Engineer or Director of Public Works shall estimate the cost of the project and present the application for the extension, the estimated cost and other required information to the Board for approval. Developers may pursue installment of water and sewer lines and related infrastructure as set forth in the town’s UDO Art. 28 under a bond or letter of credit. Any such development activity shall first be approved by the town, upon consultation with the Town Engineer, and shall commence only upon obtaining the requisite state permits. Failure to obtain the requisite state permits shall be a violation of this section and subject the developer and/or property owner to the penalties and fines set forth in § 53.99.
(b) If the application is approved by the Board of Aldermen, the town may install or have installed by contract under its supervision the extensions which have been approved, and the extension shall be financed in accordance with division (A)(1) of this section. Unless otherwise directed by the Board of Aldermen, all extensions shall be funded by the property owner or developer of an area or parcel of land. The town also may use the assessment process to fund utility extensions.
(2) When an approved water or sanitary sewer extension project has been completed and the total cost thereof has been determined, 100% of the total cost of the water or sanitary sewer extension or both may be assessed against the property owners whose property abuts upon the extension at an equal rate per front foot or per lot basis or per gallon of anticipated flow in accordance with and under the authority granted to the town by G.S. § 160A-216.
(3) Any property owner or owners shall have the opportunity to pay his, her or their proportionate share of the cost of the extensions after the assessment roll is confirmed, rather than paying his, her or their share in equal annual installments with interest as required by the statute.
(4) Applicants must make any and all required payments to town, including without limitation capital reserve fees and acreage fees, as required by ordinance or policy.
(B) Extension to proposed developments or subdivisions.
(1) Prior to the beginning of any construction, the property owner or owners shall advance to the town funds in an amount equal to 100% of the total estimated cost of the proposed extensions or enter a reimbursement agreement as set forth below in division (E). Upon receipt of the funds, a written contract shall be entered into by and between the town and the property owner or owners, under which the town will use the funds upon the following terms and conditions:
(a) The funds shall be deposited in a special account of the town, for which a separate accounting will be made;
(b) At the time construction of the extension is completed and the total cost thereof determined, if the amount deposited exceeds 100% of the total cost, the portion in excess of the amount deposited will be refunded to the owner or owners without interest. If the amount deposited is less than 100% of the total cost, the owner or owners shall pay the additional amount to the town and this condition shall be a part of the written contract. A reimbursement agreement as set forth in division (E) below may be entered to address these concerns;
(c) In lieu of depositing the required funds, the owner or owners may provide a surety bond or some other form of security that will ensure payment to the town the cost of extension in accordance with this chapter; and
(d) No refund or reimbursement of funds shall be made to the owner or owners who pay 100% of the total cost extension under the requirements of this division (B)(1)(d) except as provided for in division (B)(1)(b) above or as set forth in a valid reimbursement agreement as set forth in division (E) below.
(2) Applicants must make any and all required payments to the town, including without limitation capital reserve fees and acreage fees, as required by ordinance or policy.
(C) Facilities excluded in determining owner’s share of cost.
(1) When the town determines that it is advisable to install larger size facilities than are necessary to serve the property requesting the extension, the difference in the cost of the larger size facilities over the cost the facilities required to serve the property requesting the extension shall be paid for by the town as provided for herein.
(2) Fire hydrants, pumping stations and other system facilities installed for general public use which are expressly identified in the application or agreement approved by the Board of Aldermen shall be paid for by the town and excluded from the total cost to be shared by the property owner or owners as provided for herein.
(D) Exceptions authorized. Nothing in this chapter shall prevent the Board of Aldermen from extending water or sanitary sewer mains or both within the corporate limits on their own motion without receipt of an application from property owners and to assess the cost of the extensions in accordance with division (A) of this section when, in the opinion of the Board of Aldermen the general public interest demands the extension of service.
(E) Reimbursement agreements. Reimbursement agreements for developers requesting to extend sewer collection/transmission or water distribution mains to be connected to the town’s sewer or water system may be approved by the Board of Aldermen. A developer or developers of land within the prescribed distance of a town sewer/wastewater collection system or water distribution system outlined in Chapter 54, Appendix 1 shall be responsible for all engineering and construction costs associated with the collection/transmission/distribution line(s) installation from the development site to the closest point of connection to the town’s system(s). The closest point of connection to the town’s system shall be determined by the Director of Public Works. Upon completion of construction of the line in accordance with the town’s specifications or requirements, the line(s) shall be dedicated to the town for operation and maintenance. In order to qualify for reimbursement, the proposed line(s) size must allow sufficient capacity for additional users, and this determination shall be made in the sole discretion of the Board of Aldermen in approving or not approving the subsequent reimbursement application and contract. The developer, or a coalition of developers, that incurs the costs for the construction of the collection/ transmission/distribution line(s) shall be eligible for reimbursement up to but not exceeding 100% of the costs associated with construction of the line(s) for a period of six years in the following manner.
(1) The town’s minimum standard pipe size for sewer transmission lines shall be six inches for pressure systems and eight inches for gravity systems. The town’s minimum standard pipe size for water distribution lines shall be six inches. Whenever the town’s minimum requirement for a six-inch transmission or distribution line exceeds the size line required to serve the applicant’s specific property, the applicant/developer shall construct the size line designated on the town’s Wastewater Master Plan. In cases in which a sewer transmission or water distribution line is not designated on the Master Plan, the size shall be determined by an engineering study prepared by the developer, or as required and approved by the Director of Public Works or Town Administrator. When sound engineering demonstrates the proposed new development(s) or project(s) requires a sewer transmission or water distribution line greater than six inches (nominal diameter), then that size becomes the minimum pipe size by which the agreement is based unless a larger size is required by the Director of Public Works or Town Administrator.
(2) The developer’s engineer shall designate on the development engineering plans the sewer collection/transmission and/or water distribution line to be constructed through the reimbursement policy.
(3) All collection/transmission/distribution line reimbursement agreements must be submitted to and approved by the Board of Aldermen prior to the construction of the improvements. To initiate a collection/transmission/distribution line reimbursement agreement, the Developer shall complete the Application for Sewer Transmission/Water Distribution Line Agreement form (Chapter 54, Appendix 2).
(4) The developer or his or her designee shall comply with all applicable provisions of state law regulating public contracts. Primarily, this includes G.S. § 143-129 “Formal Bidding Procedure” or G.S. § 143-131 “Informal Bidding Procedure,” whichever shall apply, based upon the total cost of the sewer transmission or water distribution line(s) and support systems constructed as part of a reimbursement agreement.
(5) The bid shall include unit prices for the actual line size to be constructed as a part of the reimbursement. The developer or his or her designee shall provide copies of all bid proposals received, a copy of the executed contract between the developer and the selected contractor, and a bid tabulation which is signed and sealed by a professional engineer registered in the state certifying the bids received and the award of the contract in accordance with this policy. The Director of Public Works and/or the Town Administrator will determine if the bid is reasonable and acceptable.
(6) The selected contractor shall be properly licensed and qualified to perform the sewer or water line construction. The Director of Public Works or the Town Administrator, upon review by the Town Engineer, will determine if the bid/contractor is reasonable and acceptable.
(7) The developer or his or her designee shall submit an Application for Sewer Transmission/Water Distribution Line Reimbursement (Chapter 54, Appendix 3), including the construction quantities. The application shall be signed and sealed by a professional engineer registered in the state and shall designate to whom the reimbursement should be payable including the applicable address.
(8) The developer or his or her designee shall provide a certified tax statement from the contractor for the sewer transmission or water distribution line as part of the reimbursement request.
(9) The application for reimbursement shall be submitted to the Town Engineer for review prior to being approved by the Board of Aldermen.
(10) All sewer transmission and water distribution lines extended under the provisions of this policy shall be installed and constructed in accordance with the approved plans, specifications and other requirements of the town. Upon completion of the construction of sewer collection line and/or water main and all support systems, by the developer and acceptance of the sewer collection line or water main by the town, the sewer collection line and/or water main and all support systems shall become the property of the town. The town may specify that it does not accept dedication of any portions of any submitted sewer or water lines or systems.
(11) The maximum term of the reimbursement contract shall not exceed six years from the date of the agreement. No reimbursement shall be made after the six-year term or after the developer or coalition of developers has recovered all eligible reimbursement cost of the sewer transmission and water distribution line extension, whichever occurs first. The term of any reimbursement agreement shall run from the execution of the agreement by all parties until the town’s obligation for reimbursement has been met or as set forth in the agreement but not to exceed six years. The agreement may be terminated (at any time) by unanimous consent of all parties (see Chapter 54, Appendix 4).
(12) Costs eligible for reimbursement under this policy shall include the construction of all off-site sewer transmission and water distribution lines of a regional nature as determined by the Public Works Director and/or the Town Administrator. No costs associated with engineering design, permitting, bidding or construction oversight shall be eligible for reimbursement.
(13) All reimbursement agreements shall be two-party agreements between the town and a developer or coalition of developers and shall be approved by the Board of Aldermen prior to construction of the wastewater or water facilities (see Chapter 54, Appendix 4).
(14) The town has established a Water/Sewer Transmission Capital Recovery Fee charged per unit, residential or commercial. The Water/Sewer Transmission Capital Recovery Fee may be amended from time to time by the Board of Aldermen. This fee shall be collected by the town from developers or owners that connect to a sewer transmission or water distribution line constructed by another developer or a transmission line constructed by the town. The Water/Sewer Transmission Capital Recovery Fee must be paid by the developer or property owner at the time of application for sewer service permitting or at the time of plat approval by the town and shall be based on fees determined from time to time by the Board of Aldermen. This fund shall be used as the sole source of reimbursement on an annual basis by the town to developers under an approved reimbursement agreement. The reimbursement agreement shall identify the areas of line that will be eligible for reimbursement to the developer(s) who installed the line(s).
(15) The town shall maintain application forms, and model contracts for use in reimbursement agreements. These forms and contracts may be modified to meet each and every situation as needed.
(Ord. passed 8-15-1990; Ord. 07-38, passed 11-6-2007) Penalty, see § 53.99