[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.
A.
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.
B.
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:
A.
Actual costs of labor and materials or the cost as
determined by the Harrison Township Engineer (whichever is lower).
B.
Cost of bond required by Harrison Township.
C.
Engineering fees paid by a private party in connection
with design and construction of main line extensions, consistent with
industry standards.
D.
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.
A.
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.
B.
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:
(1)
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.
(2)
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.
(3)
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.
