THIS AGREEMENT is made effective as of _________________________, 20________ by and between
the Town of Shallotte (hereinafter referred to as the “Town”) and___________________________________, a
North Carolina Corporation (hereinafter referred to as the “Developer”) to provide reimbursement for developer costs associated with construction of a sewer transmission/water distribution line(s) on________________Road in Shallotte, Brunswick County, North Carolina.
WITNESSETH:
WHEREAS; the Town provides wastewater collection, transmission and treatment services and water distribution on a regional basis within the Town and certain parts of the County; and
WHEREAS; the Town is in the process of extending a transmission, collection, and distribution systems and will continue to do so through its Capital Improvement Program; and
WHEREAS; if a developer desires to develop a tract of land within the Town or near the Town that does not have immediate access to the Town’s sewer or water system, the developer may elect to construct a sewer transmission or water distribution line(s) at its sole expense to connect to the closest point on the Town’s system(s); and
WHEREAS; the Town’s Sewer/Water Use Ordinance contains a provision to reimburse a developer that elects to construct a sewer transmission or water distribution line(s) in accordance with Town and state specifications and the conditions of the Ordinance; and
WHEREAS; ___________________ has submitted an application requesting to enter into a Sewer Transmission/Water Distribution Line Reimbursement Agreement with the Town to receive reimbursement for the construction of a sewer transmission line on ________________ Road to serve a ________unit residential development/commercial project on a ________ acre site; and
NOW, THEREFORE, for and in consideration of the mutual promises hereinafter set forth, the parties hereto agree as follows:
1. The Developer shall construct approximately ___________linear feet of ______-inch ( _____-in.) sewer transmission/water distribution line(s) along ________________________ Road to a connection point on or near _________. The transmission distribution line shall be designed by a Professional Engineer licensed in the State of North Carolina and the Developer’s engineer shall designate on the development engineering plans the sewer transmission/water distribution line(s) to be constructed through the reimbursement policy.
2. The project must be competitively bid in accordance with the applicable provisions of the North Carolina General Statutes regulating public contracts. Primarily this involves G.S. § 143-129 “Formal Bidding Procedure” based on the total projected cost of the sewer transmission/water distribution line(s) to be constructed as part of this Agreement. The Developer or his or her designee shall provide copies of all bid proposals received, a bid tabulation which is signed and sealed by a professional engineer certifying the bids received and a copy of the executed contract between the Developer and the selected contractor that must include unit prices and be signed and sealed by a professional engineer. All reimbursements will be based on actual contract costs.
3. The selected contractor shall be properly licensed to perform the sewer/water line(s) construction.
4. Upon completion of construction of the sewer/water line(s) the Developer or his or her designee shall submit an Application for Sewer Transmission/Water Distribution Line Reimbursement including the actual construction quantities and a Certified Sales Tax Statement from the contractor. The Application shall be signed and sealed by a professional engineer registered in the State of North Carolina.
5. The Developer agrees that the sewer transmission/water distribution line(s) extended under this Agreement shall be installed and constructed in accordance with the approved plans, specifications and other requirements of the Town. Upon completion of construction of the line by the Developer and acceptance of the sewer/water line(s) and related infrastructure by the Town, the Developer shall dedicate the line(s) and related infrastructure to the Town for ownership, operation and maintenance.
6. The term of this Agreement shall be six (6) years from the date of this Agreement. No reimbursements shall be made after the six-year term or after the Developer has recovered all eligible reimbursement costs of the sewer line extension, whichever occurs first. This agreement may be terminated at any time by unanimous consent of the parties. No payment shall be made by the Town to the Developer until all of the Developer’s commitments under this Agreement are completed.
7. Costs eligible for reimbursement under this agreement include only the construction of all off-site sewer transmission/water distribution line(s) of a regional nature which consists of approximately _____________ linear feet of transmission/distribution line(s) to be constructed on __________________ Road. No costs associated with engineering, design, permitting, bidding or construction oversight shall be eligible for reimbursement.
8. The Town will collect a Sewer Transmission/Water Distribution Recovery Fee for every Residential/Commercial Unit as set forth in its fee schedule that connects directly or laterally to the transmission line installed by the Developer. The current Sewer Transmission Capital Recovery Fee is $800 per unit for sewer and $150 per unit for water and both are subject to be amended as necessary at the discretion of the Board of Aldermen. The fee will be collected from individuals and/or contractors at the time they submit the permit/application for Town sewer/water service or at the time of platting in the sole discretion of the Town. Individual connections or existing units that connect directly to the line will remit the Sewer Transmission/Water Distribution Capital Recovery Fee upon application for service. As necessary, the Developer will only be repaid for sewer improvements out of the sewer portion of the Transmission Recovery Fee and repaid for water improvements out of the water portion of the Transmission Recovery Fee. The Town will establish the ratio and division of payments in its sole discretion where both water and sewer improvements are made by Developer. The Sewer Transmission/Water Distribution Capital Recovery Fee payment and collection procedures may be amended at any time at the discretion of the Board of Aldermen.
9. The Developer plans to construct/develop ________ residential/commercial units at the ___-acre site on______________ Road. The Developer shall pay a Sewer Transmission Capital Recovery Fee in the amount of $ ___________ and a Water Transmission Recovery Fee in the amount of $_____________for the residential/commercial units to be constructed. This amount shall be credited against the total actual transmission/distribution line(s) construction cost. The remaining balance between the total actual construction cost and the $___________in accrued Transmission Recovery Fees will be eligible for reimbursement during the term of this Agreement. The amount of eligible reimbursement, after credits, is $_______________________.
10. The Town shall reimburse the Developer for all Residential/Commercial Units for which a Sewer Transmission/Water Distribution Capital Recovery Fee, as set forth above in paragraph 8, is collected by the Town for projects or individual connections to the line constructed by the Developer annually on or before December 31. The reimbursements will be made in the amount collected for each unit based on the prevailing Sewer Transmission/Water Distribution Capital Recovery Fees paid by users connecting to the improvements made by Developer and as set forth above in paragraph 8. Reimbursements paid to the Developer shall not exceed the total amount of Sewer Transmission/Water Distribution Capital Recovery Fees collected for this project and shall not exceed the cost of constructing the transmission/distribution line. All Sewer Transmission/Water Distribution Capital Recovery Fees collected by the Town that exceed the documented construction costs of the line constructed under this Agreement shall be retained by the Town.
11. The Developer will present the construction plans and specifications for the on-site collection/distribution system for the proposed residential development project. Following the review and approval of the plans by the Public Utilities Director and Town Engineer, the Town will execute the permit application for the collection system for up to _______ Residential/Commercial Units for submittal to the N.C. Division of Water Quality for approval. It is understood by the parties that the construction costs associated with the developers on-site collection/distribution system is not eligible for reimbursement under this agreement.
12. Annual reimbursements of the transmission/distribution line(s) construction costs will be made to:
[Developer/Owner’s Address]
13. This Agreement shall be binding on and shall inure to the benefit of the parties hereto and their respective successors and assigns. This Agreement may not be assigned to any third party by any act of the parties hereto or by operation of law without the prior written consent of the parties hereto. No waiver by any party hereto of any default shall be deemed a waiver of any prior or subsequent default under the same or other provisions of this Agreement. This Agreement constitutes the entire understanding of the parties hereto (whether written or oral), and is intended as a final expression of their mutual understanding. This Agreement shall not be modified or amended except in a writing specifically referring to this Agreement and signed by the party or parties whose obligations are affected by such modification or amendment. This Agreement shall be governed by the laws of the State of North Carolina.
IN WITNESS WHEREOF, the parties hereto have caused this Sewer Transmission/Water Distribution Line Reimbursement Agreement to be duly executed as of the day and year first above written.
DEVELOPER
By: ________________________________
Attest:_____________________________________ Name: ______________________________
Title: _______________________________
Town of Shallotte
___________________________________________
Mayor
Attest:________________________________
Clerk, Town of Shallotte
Approved As To Form:
______________________________________
Attorney, Town of Shallotte
(Ord. 07-38, passed 11-6-2007)