For the purposes of division, the following definitions shall apply unless the context clearly indicates or requires a different meaning:
Associated or other eligible facility.
An apparatus or improvement that is used in conjunction with a water or wastewater line or a drainage facility that provides water, wastewater or drainage service to a tract of land, regardless of location. The term includes a lift station, a force main, a pump station, a storage tank, a drainage detention facility or other drainage-related facility or an addition to any such existing line or facility that increases the capability of the existing facility to provide water, wastewater or drainage service.
Developer.
The person, business, corporation or association responsible for the development of a lot, parcel or tract, and includes the property owner or subdivider.
Drainage facility.
Any above ground or below ground structures, designed to carry, flow, receive or detain stormwater across or from more than one property.
Oversize or oversizing.
With reference to a water or wastewater line or an associated or other eligible facility, means an increase in the size or capacity of the line or associated or other eligible facility above the minimum size or capacity, including without limitation fire flow requirements, that is necessary to provide complete utility or drainage service to a particular development.
Pro-rata application.
A request in writing to the town for a service extension.
Pro-rata contract.
A legal document that defines the responsibilities and requirements of the entity requesting a service and the town with regard to the service extension. A pro-rata contract may be required at the sole discretion of the town.
Pro-rata fee.
A charge made against a lot, tract or parcel for the purpose of reimbursing the town or a developer a proportionate share of the service extension costs for extending a water or wastewater line and/or associated or other eligible facility that serves the property against which the charge is made.
Service extension.
A water or wastewater line or an associated or other eligible facility that is necessary to extend water, wastewater or drainage service to or from a major town transmission main, collection main, or collection point to a tract of land and across the tract or frontage of the tract to a point determined by the town engineer to be consistent with further service extensions of the town.
Service extension costs.
The total costs of any off-site service extension, as initially determined by the town’s engineer, including but not limited to costs of land/easement acquisition, design and construction costs, and any permitting or administrative fees required for such extension, but not including amounts expended solely for oversizing.
Standard size.
The size of water or wastewater line or associated or other eligible facility(ies) needed to serve a particular development as determined by the town from time to time.
Water or wastewater line.
A necessary appurtenance to a water distribution or wastewater collection system. The term includes a valve, manhole, connection, air release, diversion, and other equipment necessary to make the water distribution or wastewater collection system operable in compliance with the design criteria and standards of the town.
(Ordinance 2018-5 adopted 3/6/18)
(a) 
The developer shall extend all water and wastewater lines and associated or other eligible facility(ies) needed to connect the development or land use with the town’s approved water distribution system, wastewater collection system, and drainage system. The developer shall further extend all lines across the property currently being developed or to the point on such property from which such lines will be extended to serve adjoining land as determined by the town. As a condition of acceptance of water or wastewater lines or associated or other eligible facility(ies), the town may require conveyance of an easement on or across the property currently being developed as well as other contiguous property owned by the developer for purposes of future extension of the water or wastewater lines or associated or other eligible facility(ies). All initial service extension costs and all initial costs of oversizing, shall be borne by the developer or property owner, subject to reimbursement from proceeds of pro-rata fees or cost participation pursuant to sections 13.03.202 and 13.03.203. Requests for extension of water and wastewater lines or other associated or eligible facility(ies) shall be as provided for in this section.
(b) 
A pro-rata application is required to:
(1) 
Connect a tract of land to the existing town system; or
(2) 
Provide utility or drainage service to a tract of land if an existing line or associated facility or other eligible facility is unsuitable or insufficient to provide such service to the tract.
(c) 
A developer or property owner must submit an application for a service extension to the town engineer.
(d) 
An application for a service extension must:
(1) 
Include a general description of the location, size, and capacity of the service extension; and
(2) 
If within the town’s ETJ, be accompanied by an irrevocable petition to the town for voluntary annexation at such time and under such conditions as deemed appropriate by the town.
(e) 
If either water, wastewater or drainage service is to be provided by an entity other than the town, the application must be accompanied by evidence of a commitment from the other entity to provide the other required service. The evidence must be in the form of:
(1) 
A contract with the entity;
(2) 
A letter from the entity; or
(3) 
The minutes of the relevant meeting of the governing body of the entity.
(Ordinance 2018-5 adopted 3/6/18)
(a) 
The town manager may approve a pro-rata application or pro-rata contract for a service extension or oversizing if:
(1) 
The requested service extension or oversizing does not include a request for establishment of pro-rata fees or cost participation by the town; and
(2) 
The town manager determines that sufficient capacity exists or will be available to meet the projected demands of the development or land use to be served.
(b) 
If a requested service extension or oversizing includes a request for establishment of pro-rata fees or cost participation by the town, or if the town manager does not determine that sufficient capacity exists or will exist, the application must be processed under sections 13.03.204 (contract required) and 13.03.205 (review and approval) and requires a pro-rata contract.
(Ordinance 2018-5 adopted 3/6/18)
(a) 
After a pro-rata application or pro-rata contract has been approved, an applicant must submit the construction plans for needed improvements to the town engineer for review and approval of the size, capacity, and routing of the improvements.
(b) 
The town engineer may approve the size, capacity, or routing of an improvement only if it complies with generally accepted engineering practices and each applicable town requirement.
(c) 
Water and wastewater lines and associated or other eligible facility(ies) shall be oversized where needed to provide capacity to other existing or new developments in the area to be served in order to avoid duplication of facilities, in conformity with the town’s generally accepted engineering practices.
(d) 
The location and size of all water and wastewater lines or associated or other eligible facility(ies) necessary to serve land to be developed shall be in accordance with the town’s generally accepted engineering practices and in accordance with the town’s subdivision regulations.
(e) 
When an existing water or wastewater line or associated or other eligible facility provides service to a proposed development, the developer shall pay all applicable pro-rata fees pursuant to section 13.03.205 or 13.03.207 before a connection is made.
(Ordinance 2018-5 adopted 3/6/18)
An applicant for a service extension shall provide information determined by the town engineer to be necessary to demonstrate that construction of the service extension complies with the requirements of the town.
(Ordinance 2018-5 adopted 3/6/18)
(a) 
Unless extended under subsection (b) or (c), the approval of a pro-rata application remains valid until the latest of:
(1) 
The date on which the preliminary plat expires for the property to be served by the service extension;
(2) 
The second anniversary of the date on which the pro-rata application was approved, if on or before that date:
(A) 
A preliminary plat for the property to be served has not been approved; and
(B) 
Construction of the service extension has not begun; or
(3) 
The date established in the pro-rata contract.
(b) 
If construction of a service extension begins before the approval expires under subsection (a), the town manager may extend the approval of a service extension for the period of time estimated to be necessary to complete construction of the service extension.
(c) 
Under this section, if the approval of a service extension requires a pro-rata contract:
(1) 
Construction of the service extension shall not begin until fiscal security is posted or money is deposited in compliance with section 13.03.177; and
(2) 
The service extension approval is extended until construction of the service extension is complete and the town accepts the lines and/or associated or other eligible facility(ies) facilities constructed under the contract.
(Ordinance 2018-5 adopted 3/6/18)
(a) 
For construction pro-rata contracts administered by the town, fiscal security in an amount approved by the town engineer to be equal to 100% of the estimated service extension costs and 100% of the costs of any oversizing, must be deposited in cash with the town prior to entering into a construction contract.
(b) 
For construction contracts administered by a party other than the town, the fiscal security must be posted prior to the execution of a construction contract and must be in the form of:
(1) 
An irrevocable letter of credit that has a minimum term of three years and is acceptable to the town;
(2) 
A performance bond; or
(3) 
A cash deposit.
(Ordinance 2018-5 adopted 3/6/18)
(a) 
The town may, at its expense and in its sole discretion, upon written request of a property owner, extend a water or wastewater line or associated or other eligible facility(ies) of a size determined by the town to serve a single dwelling unit if funds are available to pay the cost of installing the line and the extension or associated or other eligible facility(ies) meets the standards in subsection (b).
(b) 
(1) 
The person requesting the extension must demonstrate that:
(A) 
A substantial hardship would result if the service extension is not made;
(B) 
Denial of the service extension would result in potential water quality degradation or drainage obstructions or other inadequacies; and
(C) 
The service extension is necessary to provide like benefits to similarly served property.
(2) 
The town may require that the property owner making the request share in the service extension costs, and that the property owner grant all necessary easements to continue line service extensions to serve adjoining land.
(c) 
This policy has no application to circumstances in which multiple connections are requested or necessary to serve existing or proposed development, or in which the town determines to initiate construction of a water or wastewater line or associated facility or associated or other eligible facility(ies) that serves multiple users. This policy may not be invoked to finance serial connections to lots in an existing subdivision.
(Ordinance 2018-5 adopted 3/6/18)
A developer that agrees to construct a water or wastewater line, drainage facility, or an associated or other eligible facility that on acceptance will become part of the town’s water and wastewater system and/or drainage system and which supplies capacity to other existing or new developments, and that is not a facility included on the capital improvements plan for water or wastewater facilities and/or drainage facilities, may apply to the town to establish pro-rata fees to be paid by other users of the facilities and to reimburse the developer a proportional amount of the service extension costs or other eligible costs. The developer also may apply for cost participation by the town for the costs of oversizing water or wastewater lines or associated or other eligible facility(ies) in excess of one size larger than the standard size required to serve the development.
(Ordinance 2018-5 adopted 3/6/18)
(a) 
The amount of the cost reimbursement for an extension of a water or wastewater line, if any, shall be computed as the off site length of a water or wastewater line that has been extended by a developer multiplied by the then-current average cost, per linear foot, of the service extension costs as determined by the town engineer. The amount of the pro-rata fee based upon such computation shall be established for each side of the line to which connections are to be made. For mains that can be connected to from both sides, the fee for each side shall be equivalent to 1/2 of the average linear foot cost referenced above, multiplied by the length of the water or wastewater line on or abutting the property being charged. For mains that can be connected to from one side only, the fee shall be equivalent to the average linear foot cost referenced above, multiplied by the length of the line on or abutting the property being charged.
(b) 
In the alternative, the developer may apply for a different cost reimbursement formula, based upon engineering cost estimates of the service extension costs agreed upon in writing by the town manager and the applicant, and verified in a study provided by the applicant approved by the town engineer. The study shall aggregate the costs of associated facilities where feasible. The town engineer may establish guidelines for eligible costs to administer the policy in this section. The amount of the pro-rata fee shall be that calculated in the approved study. The study shall contain the following minimum elements:
(1) 
Identification of the area and all properties to be served by the water or wastewater lines or associated or other eligible facility(ies) to be installed;
(2) 
Identification of the costs of the facilities to be installed;
(3) 
Apportionment of the costs of the facilities to be installed among lots, tracts or parcels to be served by the improvements, based upon capacity to be utilized by such properties, using accepted engineering standards and practices;
(4) 
Calculation of the maximum amount of the costs which are to be reimbursed to the developer or property owner, net of costs attributable to the developer’s or property owner’s utilization of capacity of the lines or associated facilities or other eligible facilities; and
(5) 
Calculation of a pro-rata fee to be charged per unit of land that is to be connected to the water or wastewater lines or associated or other eligible facility(ies).
(c) 
In making the initial determination of appropriate pro-rata fees under subsections (a) or (b), above, the town engineer shall certify in writing that the amount of the pro-rata fee is roughly proportionate to the impact that the properties to be charged will have on the town’s water and wastewater utility system and/or drainage system.
(d) 
After construction of off-site improvements by a developer that are subject to reimbursement from pro-rata fees, but before the town’s acceptance of such improvements, the town engineer may request, and the developer shall be required to promptly supply, verifiable proof of the actual costs expended as to all such off-site improvements. If the actual costs to complete such improvements - including but not limited to costs of land/easement acquisition, design and construction costs, and any permitting or administrative fees required for such extension, but not including amounts expended solely for oversizing - are less than the town engineer’s initial determination of the service extension costs or oversizing costs under subsection (a) or (b), above, then the amount of pro-rata fees as relates to those improvements shall be decreased to correspond to said actual costs.
(Ordinance 2018-5 adopted 3/6/18)
The town may participate in the reasonable construction costs of oversizing water or wastewater lines or associated or other eligible facility(ies) that exceed the standard size of a water or wastewater line, and/or associated or other eligible facility(ies). The developer initially shall be responsible for the entire cost of the oversized facilities. Town oversize participation shall be in accordance with this section and any applicable provisions of the town’s subdivision regulations. The town in its sole discretion shall determine the amount of any cost participation based on engineering estimates of the costs attributable to the increase in the size of lines or associated or other eligible facility(ies) exceeding the standard size, taking into consideration the degree to which the need for such oversizing is created by the development for which service extension is being requested. In no event may the town be required to participate in the costs of oversize facilities pursuant to this section if there are no funds available for such purposes.
(Ordinance 2018-5 adopted 3/6/18)
(a) 
The applicant for approval of a service extension must request the establishment of pro-rata fees or cost participation in writing at the time the applicant applies to the town manager for approval of the service extension. If the applicant for approval of a service extension requests establishment of pro-rata fees or cost participation, a written pro-rata contract is required.
(b) 
The pro-rata contract shall include at a minimum the pro-rata fee and cost participation, if any, approved by the town, the duration of the right to collect pro-rata fees, and provisions for forfeiture of such fees to the town in the event they are not collected by the contracting party, his or her successor-in-interest, or assignee.
(c) 
An executed pro-rata contract may be assigned by the party requesting service extension with the written consent of the town, which shall not be unreasonably withheld.
(Ordinance 2018-5 adopted 3/6/18)
(a) 
The town manager shall review each request for cost reimbursement from pro-rata fees or cost participation for oversizing lines.
(b) 
The town manager shall formulate his or her recommendation concerning the cost reimbursement from pro-rata fees or cost participation for oversizing lines, which shall address each of the following minimum criteria:
(1) 
The line to be extended or other eligible facility has not been included on the impact fee capital improvements plan for that category of capital improvement;
(2) 
The size of each proposed line or eligible facility complies with the generally accepted engineering practices and other planning criteria of the town and final design and routing will comply with the technical standards;
(3) 
Any alternative study proposing pro-rata fees fairly apportions the extension/facility costs among prospective users of the facilities to be installed;
(4) 
The proposed line or facility is a reasonable extension or addition to the water and wastewater utility system and/or drainage system; and
(5) 
Funds for participation in the costs of oversizing lines/facilities are available from an identified source of funds or funds will be available to meet the proposed payment schedule.
(c) 
The town manager shall forward his recommendation on pro-rata fees and cost participation, together with the proposed pro-rata contract, for decision by the town council.
(d) 
Upon approval of the request for reimbursement from pro-rata fees, any developer or user of property with frontage along the off-site portion of the water or wastewater line or of property that is identified in the approved fee study thereafter that connects to or utilizes the capacity of the water or wastewater line or associated or other eligible facility for which a pro-rata fee has been established shall pay the applicable fee. Pro-rata fees shall be collected by the town from the developer or user before approval of the engineering plans for the development required to pay the fee, or before connection to or use of the water or wastewater line or associated or other eligible facility(ies) for which the fee has been established, whichever first occurs.
(Ordinance 2018-5 adopted 3/6/18)
(a) 
A developer constructing a water or wastewater line or other facility that is eligible for cost reimbursement from pro-rata fees or cost participation for oversizing may not receive cost reimbursement payment for the line or facility unless the entity complies with each requirement or regulation of the town relating to:
(1) 
The public advertising of the line or facility;
(2) 
The bidding on the line or facility;
(3) 
A performance or payment bond for the line or facility; and
(4) 
A maintenance bond on the line or facility.
(b) 
The developer constructing the line or facility is not entitled to receive a cost reimbursement payment from pro-rata fee proceeds or cost participation for oversizing lines or associated or other eligible facility(ies) until the entity submits documentation showing the entity’s compliance with each requirement described by subsection (a) and the line or facility is accepted in writing by the town.
(Ordinance 2018-5 adopted 3/6/18)
(a) 
For projects subject to a pro-rata contract approved by the town by April 1st of any year, the town shall pay the developer holding the contract any eligible cost reimbursement for a service extension and/or oversizing, without interest, within 60 days of completion and acceptance of the project by the town, but no earlier than the following September 1st.
(b) 
For projects for which a pro-rata contract is approved by the town after April 1st of any year, the town shall pay the developer holding the contract any eligible cost reimbursement for a service extension and/or oversizing, without interest, for a completed and accepted project within 60 days of completion and acceptance of the project by the town but no earlier than September 1st of the next calendar year.
(c) 
For a period of 15 years following the town’s acceptance of the water line, wastewater line, or associated facility or other eligible facility, the developer shall be entitled to reimbursement from the proceeds of the pro-rata fees established pursuant to this division, up to the maximum amount of the reimbursement established in the approved pro-rata contract. The town may deduct 2% of the amount of pro-rata fees collected from the amount of the fees reimbursed to the developer as an administration fee.
(d) 
Pro-rata fees which have been collected pursuant to the pro-rata contract shall be paid to the developer annually no later than October 1st of each year, until the term of the agreement expires.
(e) 
The town may establish one or more pro-rata fee accounts for purposes of administering the policies of this division. The town shall deposit all pro-rata fees collected pursuant to this article into such account(s). Expenditures from such accounts shall be earmarked solely for reimbursement of developers for the installation of water lines or wastewater lines or associated or other eligible facility(ies) for which pro-rata fees have been established pursuant to this article.
(f) 
It shall be the responsibility of the pro-rata contract holder or his assignee to provide to the town in writing current contact information. The town will mail reimbursement payments to the last contact of record reflected on its books. In the event that the pro-rata contract holder or his assignee has not collected pro-rata payments or cost participation in oversize lines/facilities sent to the contact of record for a period of one year from the date such payments are due pursuant to this section, such accrued amounts shall become the funds of the town for purposes of expenditure on cost participation for oversizing lines or other system improvements in the town’s sole discretion.
(Ordinance 2018-5 adopted 3/6/18)
(a) 
The town may initiate capital projects from time to time involving construction of water or wastewater lines or associated or other eligible facilities, and may seek to recoup its costs through establishment of pro-rata fees.
(b) 
Prior to establishing fees, the town shall either compute fees based upon a per average linear foot formula similar to the formula described in section 13.03.202(a) or pursuant to a study that satisfies the requirements of section 13.03.202(b). The town council shall establish pro-rata fees based upon the front footage formula or alternative study.
(c) 
Following establishment of pro-rata fees by the town council, the developer or user of property with property frontage on the extended water or wastewater line or of property that was identified in the approved pro-rata fee study thereafter that connects to or utilizes the capacity of the water or wastewater line or associated or other eligible facility(ies) for which a pro-rata fee has been established shall pay the applicable fee. Pro-rata fees shall be collected by the town from the developer or user before approval of the engineering plans for the development required to pay the fee, or before connection to the water or wastewater line or associated or other eligible facility(ies) for which the fee has been established, whichever first occurs.
(d) 
Pro-rata fees established under this section may be collected for a period of 15 years following final construction by the town of the water line, wastewater line, or associated or other eligible facility.
(Ordinance 2018-5 adopted 3/6/18)