[Adopted 12-29-1988 by Ord. No. 581; amended
in its entirety 6-10-1991 by Ord. No. 603 (Ch. XIX, Part 6, of the
1975 Code of Ordinances)]
Act 203 of 1990 (House Bill 1361, Printer's
No. 4295) provides that the provisions of the Municipality Authorities
Act of 1945,[1] as amended, shall apply to and regulate tap-in connections
or other similar fees imposed by municipal owned sewer and water systems.
In this regard, Act 203 of 1990 amends the Municipality Authorities
Act of 1945 as it relates to the imposition of tapping fees for sewer
and water connections. Therefore, the provisions of Act 203 of 1990
replace Municipal Code provisions concerning the imposition of tapping
fees by municipalities.
[1]
Editor's Note: See now 53 Pa.C.S.A. § 5601 et seq.
A.
Background objective. Act 203 of 1990 (House Bill
444, Printer's No. 3941)[1] amends the Municipality Authorities Act of 1945, which
currently provides for a tapping fee, the components of which are
not defined. Because there had been no clear statutory formula detailing
the specific costs which may be imposed as a part of a tapping fee,
the proponents of Act 203 argued the need to reduce the potential
for using exorbitant tapping fees against new water and sewer customers
in place of system-wide assessment against all Borough of Derry sewer
system customers. The objective of Act 203 of 1990 is to limit tapping
and related fees so that new development will pay only its direct,
proportionate share of costs for including new residents in a sewer
or water system.
[1]
Editor's Note: See 53 P.S. § 10501-A et seq.
B.
Contents. Act 203 of 1990 delineates and defines the
components which may be charged to those connecting to a Borough of
Derry sewer system's water or sewer system. The fees, which are to
be based upon an adopted fee schedule and which will be payable at
the time of application for connection (if no other time is agreed
to), may include the following components:
(1)
A connection fee may be based on, but may not exceed,
the actual cost of the connection from the Borough of Derry sewer
system's main to the property line. Alternatively, it may be based
on the average cost of previous, similar connections.
(2)
A customer facilities fee is chargeable only if the
Borough of Derry sewer system installs the facilities from the property
line to the structure to be served. If imposed, this fee is to be
based on the actual cost of connection from the property line to the
structure. Also, in the case of water service, the fee may include
the costs of providing or installing a water meter provided or installed
by the Borough of Derry sewer system.
(3)
A tapping fee may be composed of four parts: capacity,
distribution or collection, special purpose, and reimbursement. It
may not exceed an amount based upon some or all of these four components,
as follows:
(a)
The capacity part is a fee based on the cost
of facilities such as supply, treatment, pumping, and transmission
facilities. These may include facilities providing existing services
and those to provide future service. For future capacity-related facilities,
the cost must be included in an annual budget or a five-year capital
improvement plan, and the Borough of Derry sewer system must have
taken some action in furtherance thereof.
(b)
The distribution or collection part includes
fees which may not exceed an amount based on the cost of providing
facilities such as mains, hydrants, and pumping stations.
(c)
The special purpose part includes fees based
on the cost of providing facilities such as booster pump stations,
fire service facilities, and industrial wastewater treatment facilities.
These facilities would provide service to a particular group of customers
or serve a particular purpose and/or serve a specific area.
(d)
The reimbursement part is an amount necessary
to recapture the allowable portion of facilities to the property owner
at whose expense the required facilities constructed.
C.
The cost of existing facilities is to be based on
their replacement cost of their historical cost trended to current
cost, or upon historical costs plus interest paid on bonds which financed
such facilities. In the case of facilities to be constructed, the
cost is not to exceed the estimated cost. Furthermore, the individual
components of the tapping fee per unit, or capacity required, is not
to exceed the cost of the facilities divided by the design capacity
of those facilities.
D.
No tapping fee may include the cost of replacing or
upgrading facilities which serve existing customers in order to meet
stricter standards or provide better service to those customers. Also,
the cost used in calculating tapping fees may not include maintenance
and operating expenses.
E.
In lieu of the payment of connection, customer facilities,
or tapping fees, the Borough of Derry Sewer System may require the
construction and dedication of those necessary facilities by the property
owner requesting such service.
F.
Where a sewer or water system is to be extended at
the expense of the owner, the owner has the right to construct the
facilities himself, provided the Borough of Derry sewer system may
perform the construction if it does so at a lower cost and within
the same timetable. Plans and specifications for construction by the
property owner must be approved by the Borough of Derry sewer system,
and the Borough of Derry sewer system may require the property owner
to cover the Borough of Derry sewer system's reasonable expenses in
doing this. The Borough of Derry sewer system may also require that
the property owner constructing the facilities post the appropriate
financial security. Upon completion of the facilities, the property
owner is to dedicate them to the Borough of Derry sewer system.
G.
When a property owner constructs an extension of a
sewer or water system of a Borough of Derry sewer system, the Borough
of Derry sewer system is to reimburse the owner when another property
owner not in the immediate development connects to the extension within
10 years of the dedication of the extension. The reimbursement is
to be equal to the distribution or collection part of each tapping
fee collected as a result of subsequent connections. The total reimbursement
is not to exceed the cost of constructing and dedicating the extension
to the Borough of Derry sewer system, less the fee which would have
been paid had the property owner not constructed the extension.
H.
The Borough of Derry sewer system is required to notify
the recipient of such a reimbursement upon 30 days of its receipt
of the reimbursement payment. In the event a property owner does not
claim his reimbursement within 120 days of the mailing of the notice,
the funds are to revert to the Borough of Derry sewer system.
Upon careful review and analysis of the provisions of Act 203 of 1990 by Mr. Edward Schmidt, P.E., of Gibson-Thomas Engineering Co., it has been determined that the figures and most particularly the tapping fee provided for in Article VIII meet the requirements and criteria and therefore the provisions of Article VIII are incorporated herein by reference as fully as though set forth herein at length and are made a part of this Part 2 in their entirety and a copy of said Article VIII is attached hereto, made a part hereof and marked Exhibit A.[1]
[1]
Editor's Note: Exhibit A is on file in the Borough offices.
Any and all fees set forth herein in this Part
2 may be changed from time to time by resolution without the necessity
of the formality of an ordinance.
Any person, partnership or corporation who or
which shall violate any of the provisions of this article shall, upon
conviction thereof, be sentenced to pay a fine or penalty which said
fine and penalty shall not exceed $1,000, plus costs of prosecution,
and, in default of payment of such fine and costs, by imprisonment
for not more than 30 days, for any violation thereof, and each and
every day that a violation occurs shall constitute a separate offense.
[Amended 12-28-1993 by Ord. No. 617]
A.
All owners of real estate connected, or hereafter
connected, with the public sanitary sewer system owned or leased by
the Borough shall pay sewer rentals or charges in quarterly installments
as hereinafter set forth in the following schedule of rates:
(1)
Residential: for each single-family dwelling or equivalent
dwelling unit, $40 per month for the first 3,000 gallons and the sum
of $3.50 per thousand gallons thereafter, proposed effective September
2007.
[Amended 3-15-2003 by Ord. No. 671; 9-17-2007 by Ord. No.
718]
(2)
Commercial and industrial sanitary wastes: for each
billing unit, the sum of $20 per month and the sum of $6.25 for each
1,000 gallons used during the billing period; a separate rate shall
be negotiated for all wastes, other than normal sanitary wastewater,
discharged into the sanitary sewer system.
[Amended 3-15-2003 by Ord. No. 671; 9-17-2007 by Ord. No.
718]
(3)
Schools: for each connection, the sum of $6.24 per
year for each pupil determined on the basis of daily attendance.
No unauthorized person shall uncover, make any
connection with, or opening into, use, alter or disturb any portion
of the public sewer system operated by the Borough without first obtaining
a permit from the Borough.
Before making a connection with the sewer system
owned by the Borough, each property owner shall:
[Amended 6-13-2011 by Ord. No. 740]
Any person who shall violate any of the provisions
of this article shall, upon conviction thereof, be sentenced to pay
a fine of not more than $1,000 and costs of prosecution, and, in default
of payment of such fine and costs, to imprisonment for not more than
30 days.
