In all cases where an extension of City sewer mains has been
requested by a prospective extender and the anticipated income to
be derived from such extension does not warrant that the capital investment
required therefor be made by the City, then if the proposed extender
still desires to have such sewer main extension made, is willing to
pay the cost thereof and the City is willing to have such extension
made to its sewer system, the same shall be done on the terms and
conditions outlined herein.
Upon completion of such sewer line and its approval and acceptance
by the City, the line shall be and remain the property of the extender
who shall thereupon lease the same to the City upon the following
terms and conditions:
A. The term of the lease shall be for a period of no more than 10 years
from the time the line is placed in service.
B. The City shall maintain and operate the line, bearing all expense
with relation thereto, and collect sewage therein from its customers
and other parties connecting to the same.
C. The extender shall receive sewer services from the City by means
of such line and pay the City for the same at the published rates
of the City for such service which may be in effect from time to time
during such service. The customer shall be bound by all rules and
regulations of the City relating to sewer service.
D. Connection fee.
(1) During the term of such lease, while ownership of the line remains
in the extender, no other person shall be allowed to connect to such
line unless such person pays the extender a connection fee in accordance
with the Tariff.
(2) In all cases only sanitary sewage is to be put into such sewer line.
Any industrial discharges shall receive prior approval of the City.
All storm drainage of any kind is to be excluded.
E. In the case of another extender who wishes to connect to such sewer
main for the purposes of laying his own main to serve a number of
prospective customers therefrom, such other extender shall pay the
owner-lessor an amount which represents no more than 50% of the cost
of such sewer main up to the point of such connection after deducting
from such cost any connection fees already paid for connections to
the sewer line up to the point of connection. Such other extender
shall not be entitled to receive any connection fees for connections
made to the original line, but shall be entitled to be reimbursed
for the line which he himself pays for in accordance with a lease
similar to that provided for herein.
F. At no time shall the extender be entitled to recover more than the
total cost of the sewer line, calculated without interest. If such
total cost has been recovered prior to 10 years from the date when
the line was placed in service, the lease shall terminate at the time
of the recovery of such cost. If the total cost has not been recovered
within 10 years from the date when the line was placed in service,
it shall terminate in all events at the end of the ten-year period,
and the right of the extender to recover any more costs shall cease.
G. Upon termination of the lease, the extender shall dedicate the sewer
line to the City Sewer Authority and it shall thereupon become a part
of the sewer system owned by such Authority.
The City shall have the right at all times to make connections
to the lines of the extender and lay additional sewer mains at its
own cost, without the payment of any connection fee to the extender,
provided that such extensions and additions so made by the City are
solely for the improvement of its sewer service and no customers are
connected thereto. If any customer connections are made to any such
additions made by the City, then such lines shall be subject to the
terms of the lease as if made by a private extender.
In the event that the City makes a contribution towards the cost of laying the sewer line, representing the difference in cost of the size of pipe as contemplated in §
249-41, then such contribution shall be deemed to represent as many linear feet of sewer line as the linear foot cost of the entire line, and the City shall own the initial number of linear feet thus represented, so that the line owned by the extender and leased to the City shall be deemed to start at the point where the initial number of linear feet ends. (Example: A twelve-inch sewer line for 5,000 linear feet costs $50,000 or $10 per linear foot. The City contributes $15,000 for the difference in cost between six-inch pipe and twelve-inch pipe. The City Sewer Authority would own the initial 1,500 feet of twelve-inch sewer line and the remaining 3,500 feet would be owned by the extender and leased to the City as herein provided.)
The final decision on whether or not an extension to the sewer
lines shall be permitted on the conditions outlined herein or otherwise
shall be and remain with the City. The City Sewer Authority, which
shall become the ultimate owner of sewer lines extended as herein
provided, shall be notified of each lease agreement relating thereto
and receive a copy thereof.