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(a) Extensions to approved subdivisions or developed property.
(1) When application is received requesting the extension of water and sewer service 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 such area is not part of a new subdivision which has not been approved by the town, the town clerk or other persons designated by the council shall estimate the cost of the project and present the application for such extension, the estimated cost and other required information to the council for their consideration. If the application is approved by the council and subject to the availability of funds, the town will install, or have installed by contract under its supervision, the extensions which have been approved, and such extensions shall be financed in accordance with this subsection.
(2) When an approved water or sewer extension project has been completed and the total cost thereof has been determined, one hundred (100) percent of the total cost of the extension shall be assessed against the benefitting property owners, using one of the methods of assessment authorized under G.S. Chapter 160A.
(3) Any property owner shall have the opportunity to pay his proportionate share of the cost of such extensions after the assessment roll is confirmed rather than paying his share in equal annual installments with interest as required by state law.
(b) Extensions to proposed development or subdivisions.
(1) When an application is received requesting the extension of water and sewer service to proposed developments or subdivisions within the corporate limits which have not been approved by the council, the town clerk or other person designated by the council, shall estimate the cost of the project and present the application for such extension, the estimated cost and other required information to the council for their consideration. If the application is approved and subject to the approval of the development or subdivision by the town, and subject to the availability of funds, the town may install, or have installed by contract under its supervision, such extensions, which shall be financed in accordance with this subsection.
(2) Prior to the beginning of any construction, the property owner shall advance to the town an amount equal to one hundred (100) percent of the total estimated cost of the proposed extensions. Upon receipt of such funds, a written contract shall be entered into by and between the town and the property owner, under which the town will use 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 is determined; if the amount deposited exceeds the total cost, that portion in excess of the amount deposited will be refunded to the owner without interest; if the amount deposited is less than the total cost, the owner shall pay such additional amount to the town, and this condition shall be part of the written contract.
c. In lieu of depositing funds, the owner may provide a surety bond acceptable to the town or some other form of security that will insure payment to the town of the owner's proportionate share of the cost of the extensions in accordance with this division.
d. No refund or reimbursement of funds shall be made to the owner who pays the total cost of extension under the requirements of this subsection, except as provided in subparagraph b. of this section.
e. All administration, legal and engineering costs involved in the town's accomplishment of such extensions shall be considered a part of the total cost and shall be included in all estimates and accountings under this division.
(c) Facilities excluded in determining owner's share of cost.
(1) When the town determines that it is advisable to install larger facilities than are necessary to serve the property requesting such extension, as set out above, the difference in the cost of the larger facility over the cost of the facilities required to serve the property requesting such extension shall be paid for by the town and excluded from the total cost to be shared by the property owner and the town as provided herein. All mains up to eight (8) inches in size, or engineer’s recommended main size in order to maintain current or better water quality and fire prevention standards in accordance with Surf City Specifications, shall be considered as being required to serve the property requesting such extensions.
(d) Exceptions authorized. Nothing in this division shall prevent the council from extending water and sewer service within the corporate limits on their own motion without receipt of an application for property owners, or from accessing the cost of such extensions in accordance with subsection (a) of this section when, the opinion of the council, the general public interest demands such extension of service.
(Ord. No. 1992-1, 1-7-92; Ord. No. 2001-2, § 11, 1-8-01; Ord. No. 2021-09, 5-4-21)