If the city council determines that the area through which the utility will be extended is suited for growth and development, the city council may apply the following reimbursement and lien process which shall be applicable to those parcels or lots deemed benefited by the utility main extension:
A. An extension connection fee will be determined by the city upon completion of the utility extension. Any subsequent utility user within the area designated connecting directly to such utility extension shall pay an extension connection fee at the time of connection to the utility. Utility service from the city will not be provided unless such extension connection fee is paid in full. The fee shall be determined as follows:
1. The developer is solely responsible for the costs of that portion of the utility extension which is fronted on both sides by property owned by the developer, and such costs are deducted in the calculation of the extension connection fee.
2. The developer is solely responsible for one-half (1/2) of the costs of that portion of the utility extension which is fronted only on one side by property owned by the developer, and such costs are deducted in the calculation of the extension connection fee.
3. The developer shall not be required to pay an extension connection fee.
4. Except as otherwise provided hereafter, the extension connection fee shall be determined as follows:
Step 1: Cost of entire utility extension
- Costs of subsection A1 or A2 of this section
- Material costs paid or credits issued by city for larger capacity per section
8-17-5 of this chapter
Step 2: Reimbursement costs
÷ Number of feet to developer's property if developer fronts the utility extension on both sides; or number of feet to developer's property plus one-half (1/2) the number of feet of frontage of the developer's property if the developer's property does not front the utility extension on both sides
x Number of feet of owner's property being connected which fronts the public utility easement of the utility extension
= Extension connection fee
5. Upon good cause to better equitably distribute costs, the council may determine to use lot acreage rather than frontage feet as the basis for determining the extension connection fee.
6. Upon good cause the council may include lots which do not abut the public utility easement of the utility extension in determining and assessing an extension connection fee.
B. Extension connection fees shall be paid by the city to the developer of the original extension up to an amount equal to ninety percent (90%) of the cost of the extension. The extension connection fee is only due and collectable upon connection to the utility extension.
C. The city shall in no way be obligated to ensure that the developer making such an extension is paid ninety percent (90%) of the total costs thereof.
D. If more than one developer contributes to an extension, each shall be refunded in a pro rata fashion according to the amounts contributed.
E. The extension connection fee charge shall constitute a public utility extension lien upon the property adjacent to or abutting the public utility easement through which the utility extension is constructed and any other property deemed by the council to have similarly benefited from the extension. The utility extension lien shall extinguish twenty (20) years after the date of the completion of the utility extension. The city shall record the liens on the appropriate properties and provide notice to owners of record within six (6) months from the completion of the extension. All liens shall be released upon payment or expiration of the twenty (20) year period, whichever occurs first.
F. If the city extends a utility main at its own expense, adjacent or abutting property, or property which the council deems similarly benefited by the extension, shall be subject to an extension connection fee and lien as provided above.
G. The above provisions notwithstanding, if a utility extension is installed on one side of a public street outside of the paved area, the cost of the extension connection fee and lien shall be proportioned such that the property owners on the side of the street of the utility extension shall be responsible for sixty percent (60%) of the reimbursement, and the property owners on the opposite side shall be responsible for forty percent (40%) of the reimbursement.
H. Nothing herein precludes the city from entering into a mutual agreement for a utility extension with a developer without applying the provisions of this chapter. (Ord. 2000-04, 8-1-2000)