(a) Eligible projects.
(1) In the event all or some portion of a trunk or treatment facility is constructed by a developer/owner to or through the developer/owner’s property, then the developer/owner is eligible to be reimbursed for the full cost of the facility constructed.
(2) If an extension is required in order to make a main available to a development and financing is by the developer, then the developer/owner is eligible to be reimbursed for the full cost of the extension. If the developer/owner is making connection with a main or other facility that abuts the developer/owner’s property, the developer/owner is not eligible for reimbursement unless the extension to the property involves a bore and casing or other extraordinary expense.
(3) Water system and sewage system mains installed within a development shall be installed at the full expense of the developer/owner, and the developer/owner is not eligible for reimbursement.
(b) Reimbursement agreements. Any reimbursement to a developer/owner shall be set out in a specific agreement.
(1) Approval of agreements and contract award. The agreement must be approved by Council prior to bidding the project and no reimbursement shall be allowed for any project unless the proposed bid award is concurred in by Council prior to contract execution.
(2) Content of agreements. Agreements shall contain the following information:
A. The engineer’s estimate of project cost;
B. The allocation of funding portions to user/potential users of the facility; the percentage of potential equivalent residential meters to be allocated to the developer/owner, other unserved properties within the service area of the facility and the city; and the proportion of the estimated cost to be allocated to each;
C. A schedule of the method by which funds are to be reimbursed, listing the estimated proportion of reimbursement to be obtained from facilities charges within the development, facilities charges from adjoining potential development, city contributions and schedule, and the like; and
D. The proposed schedule for project construction.
(3) Term of reimbursement and interest. The term of an agreement shall be for the shortest practicable time, but shall not apply for a period longer than ten years.
(4) Limit on amount of recovery.
A. The amount reimbursed to a developer/owner shall not exceed the actual project construction cost plus accrued interest.
B. A developer/owner is not assured of complete reimbursement if any portion of the reimbursement is from future development which may connect to the facility.
(c) Permitted methods of reimbursement. A developer/owner shall be given credit for any tap fees applicable to development within the developer/owner’s property to be served by the project and covered in a reimbursement agreement. Such credit will be given at the time a building permit is issued, and the amount will be subtracted from the total reimbursement amount contained in the agreement.
(1) Reimbursement agreements may provide that a credit for tap fees within the development be given to the developer/owner if the developer/owner finances a trunk or treatment facility to make service available to, or to traverse, the development.
(2) Reimbursement agreements may provide that tap fees from future subdivisions be collected by the city and transferred to the developer/owner who or which finances a trunk or treatment facility at such time as building permits are issued for development that will use the facility.
(3) Reimbursement agreements may provide that special connection charges be collected by the city and transferred to a developer/owner who or which finances the installation of small facilities.
(Ord. 98-81, passed 11-24-1998)