(a) General. Each reimbursement agreement shall state the total dollar amount which is subject to reimbursement and shall identify the wastewater line(s) which are the subject of the agreement and the entire area benefitted by the extension or oversizing of such wastewater line(s). Preparation of and entering into a reimbursement agreement typically would occur at or near the conclusion of construction of the project so that costs can be compiled. Methods of determining the pro-rata shares may be: (1) by area of the benefiting properties; (2) by the number of benefiting properties, if that is judged by the City to be more equitable; (3) by the number of single family dwellings; or (4) any other method approved by the Public Works Director. The methodology used to determine benefit and the selection of the properties which are considered to benefit shall be at the sole discretion of the City.
(b) Eligible and Ineligible Project costs. The eligible project costs may consists of the construction contract price, including all labor and materials costs incurred for the construction of the wastewater line(s), engineering design and surveying costs, bond issuance costs, fees paid to the City, such as for plan check, inspection, encroachment permits, easement documents, and other costs approved to be eligible. Ineligible costs shall include attorney fees, interest paid on construction loan financing, and contract administration costs in excess of ten (10%) percent of total construction costs. Only that portion of the project cost which benefits other properties, as approved by the Public Works Director, shall be subject to payback through a reimbursement agreement. The reimbursement agreement shall be based upon actual constructed costs, not estimates. Documentation of costs shall be provided to the City in the form of signed, executed contracts, and certified payroll sheets showing the names of employees, their wages and all deductions for state and federal taxes, health benefits, workers' compensation, union dues (if applicable), social security and any other standard deductions. In a case where an applicant is personally involved in the construction of the improvements (such as operation of a backhoe or other equipment), the hourly charges for said person may not exceed the prevailing wage rate for operation of said piece of equipment, and shall be approved by the Public Works Director.
(c) Reimbursement payments. Each reimbursement agreement shall include provision for the amount and timing of payments to the developer, its successors or assigns as received by the City from benefiting properties. The maximum duration of the agreement shall be ten (10) years commencing on the date of City Council acceptance of the mainline extension or the date of approval of the reimbursement agreement by City Council, whichever comes first. The applicant shall be responsible for providing a current mailing address to the city over the life of the reimbursement agreement. The City's responsibility for making reimbursement payments to the applicant shall be limited to mailing such reimbursements to the last known address provided by the applicant. Where reimbursement payments are returned to the City as undeliverable, the City will disburse said monies to applicant upon notification by the applicant of a new mailing address without benefit of paying accrued interest of such monies. Notwithstanding the foregoing, in the event the City has retained any returned funds, those funds shall be returned to the participating property owner after six months, and the applicant shall have no recourse to said funds from the City after this time period. If collected monies are returned to the City as undeliverable from applicant and participating property owner, City may retain such funds for its own use. Any direct collection of funds/monies by the applicant from participating property owners shall nullify and void the agreement.
(Ord. 1515-NS, eff. June 5, 2009)