[HISTORY: Adopted by the Township Committee of the Township of Harrison 8-6-2002 by Ord. No. 29-2002. Amendments noted where applicable.]
The purpose of the provisions of this chapter is to provide a procedure and formula to determine the pro rata reimbursement between or among private parties for the costs of water and sewer main extensions when such extensions are financed by the private parties.
The provisions of this chapter shall apply to all applicants for water and sewer service who seek to connect to water and sewer main extensions constructed by private parties.
The provisions of this chapter shall apply to all water and sewer main extensions constructed by private parties and accepted by the Township after the date of adoption of this chapter.
The private party who constructs water and sewer main line extensions with private funds shall be entitled to a pro rata reimbursement of the following costs of construction:
Actual costs of labor and materials or the cost as determined by the Harrison Township Engineer (whichever is lower).
Cost of bond required by Harrison Township.
Engineering fees paid by a private party in connection with design and construction of main line extensions, consistent with industry standards.
Interest, which shall be at a rate equal to the applicable federal rates published annually by the Internal Revenue Service or the rates actually paid by the private party, whichever is greater.
The period of time under which a pro rata share cost may be recouped is to be 20 years from the time Harrison Township (Township) accepts the system improvements.
The private party who constructs the water and sewer line extension shall be required to produce documentary proof in a form satisfactory to the Township of all costs for which pro rata reimbursement is sought. This documentary proof shall be in the form of paid invoices or receipts, canceled checks, or some similar evidence certifying the costs which were expended. In the event that sufficient documentary evidence cannot be produced as set forth above or there is disagreement with the proposed costs, the Township Engineer shall prepare cost estimates of the extensions in question which shall constitute the basis for the reimbursement request.
The pro rata cost reimbursement to be paid to the private party constructing the water and sewer line extensions by another private party who is benefiting by the said extensions shall be calculated on the basis of equivalent dwelling units of all of the properties benefiting from the line extensions. The specific formula is attached hereto and made a part hereof.
Upon submission of a subdivision or site plan application, or upon request for sewer service from the Township, or for a building permit for new construction on an existing lot, the applicant shall certify whether the requested water/sewer service will require connection to water/sewer main extensions that were constructed by other private parties or that the applicant will make a good faith effort to ascertain same.
In the event the applicant does require connection to water/sewer main line extensions that were constructed by other private parties, the applicant shall be required to provide to the Township, upon submission of the NJDEP application, proof of the satisfaction of one of the following conditions:
Affidavit from applicant that he has made a good faith effort to ascertain and locate the private party who constructed the water/sewer main line extensions but was unable to do so, which affidavit shall include full and complete information on the efforts that were so made.
Release from private party who seeks to connect to the sewer and/or water main extension, to a private party who constructed said extension reflecting that any and all claims that said private party may have for cost reimbursement have been satisfied by the applicant or an executed settlement agreement between the parties resolving said claims.
Agreement between private party who constructed the water/sewer main line extensions and the applicant to submit any disputes on the pro rata cost reimbursement, based upon the formulas set forth in this chapter, to a hearing examiner appointed by Township with the right of appeal to the Township governing body.
The applicant shall be required to reimburse the Township for any legal, engineering, or administrative fees or costs that it may incur in connection with the implementation, interpretation, enforcement, or any disputes arising therefrom, in the pro rata cost reimbursement procedures.
The provisions of this chapter shall not be applicable in those situations where private parties that have extended water/sewer lines have received monetary credits from the Township in the form of reduced connection fees, nor shall they be applicable to provide cost reimbursement to privately owned utilities that install water mains.
The following formula is to be used to establish a fair cost sharing for off-site water and sewer main extensions accomplished by parties other than the Township. The formula's primary ingredients are flow from each development as a portion of the total flow of the pipeline and the extension distance which ultimately equates to cost. The Township shall establish total flow from the properties impacted by the water/sewer line extension based on total flow estimates provided by the applicant that proposes to extend the water/sewer line. The estimates shall be based on the zoning of the affected properties and industry standards related to flow from the permitted uses on the affected properties. With regard to the formula below, pickup point one represents the property closest to the terminus of an existing water/sewer line. Pickup point three represents the most distant property to the terminus of an existing water/sewer line.