CHAPTER 7-08
EXTENSION AND REIMBURSEMENT AGREEMENTS FOR THE CONSTRUCTION OF WATER AND SEWER LINES
SECTIONS:
7-08-001-0001 DEFINITIONS
7-08-001-0002 POLICY GOVERNING WATER AND SEWER LINE EXTENSION AND REIMBURSEMENT AGREEMENTS
7-08-001-0003 LINE EXTENSION PLAN
7-08-001-0004 LINE EXTENSIONS
7-08-001-0005 REIMBURSEMENT AGREEMENTS
7-08-001-0006 LINE PAYBACK CHARGES
7-08-001-0007 ASSIGNMENT
7-08-001-0008 MINIMUM REQUIREMENTS FOR LINES
7-08-001-0009 OVERSIZING
7-08-001-0010 DEDICATION OF RIGHT-OF-WAY
7-08-001-0001 DEFINITIONS:
The definitions set forth below shall be applied for the interpretation and enforcement of the provisions of this Ordinance. The following words, terms and phrases, when used in this Chapter, shall have the meanings ascribed to them in this Section, except where the context clearly indicates a different meaning:
A. Cost of construction: The initial cost of construction of the water or sewer line facilities as determined by the construction contract price, including the inspection and permit fees paid to the City; the engineering fees required for the preparation of plans and specifications; and the cost of land.
B. Developer or owner: The individual, firm, corporation, partnership, association, syndication, trust or other legal entity which incurs the initial cost of construction of the water or sewer line facilities, or is responsible for creating a subsequent demand on such water or sewer line facilities.
C. Line payback charge: The amount of money a developer or owner must pay to the City for his share of all costs for water or sewer line facilities serving his property.
D. Maximum reimbursement amount: The total cost of construction for the portion of the water or sewer line facilities which serve the subsequent demand created by a developer or owner other than the developer or owner who incurs the initial cost of construction of the water or sewer line facilities.
7-08-001-0002 POLICY GOVERNING WATER AND SEWER LINE EXTENSION AND REIMBURSEMENT AGREEMENTS
A. In addition to City policy as set forth in Resolution No. 1521 and implemented by City Code Sections 2-04-001-0008 and 2-04-001-0009 pertaining to the provision of water and sewer service outside of City limits, there is hereby established a policy and orderly program for extension of the services and facilities of the City’s water and sewer system to serve and provide for newly developed areas and subdivisions inside and outside of City limits for which City water or sewer service is desired and available, and to provide for reimbursement agreements with developers or property owners and the collection of line payback charges. The elements of the extension policy and program set forth in this Chapter shall apply to all extensions of the City water and sewer systems.
B. All requests for water and sewer line extensions shall be made to the City of Flagstaff Utilities Division. Upon satisfactory compliance with the provisions of this Chapter, the Director of the Utilities Division or his designee may authorize and execute a reimbursement agreement on behalf of the City.
7-08-001-0003 LINE EXTENSION PLAN
Upon development of any property, area or subdivision within the City limits, or of any property, area or subdivision outside of the City limits for which City water or sewer service is desired, available and approved, the developer or owner shall:
A. Submit a plan for the proposed water and/or sewer system extension system prepared by a professional engineer licensed in the State of Arizona;
B. Comply with all applicable City standards; and
C. Obtain approval of the plan from the City.
7-08-001-0004 LINE EXTENSIONS
A. Prior to the issuance of any City permit for the extension of a water or sewer line to serve a subdivision, platted or unplatted property, the developer or owner desiring such extension shall submit the following to the City Utilities Division:
1. A map or diagram of all property which will be benefited by any water or sewer line to be installed;
2. A written statement acknowledging that the developer or owner shall transfer ownership to the City of the water or sewer line to be installed, including any appurtenances and necessary land rights or easements, immediately upon completion and acceptance of the installation work by the City; and
3. A written statement acknowledging that the City’s cost for inspecting the installation work shall be paid by the developer or owner through the fee for issuance of the City’s permit.
B. The information required in paragraph 1., subsection A. above, which is necessary to complete the permit application process, shall be provided by the developer or owner at his expense.
7-08-001-0005 REIMBURSEMENT AGREEMENTS
A. Within sixty (60) days after completion and final acceptance by the City of the extension of any water or sewer line to serve a subdivision, platted or unplatted property, the developer or owner desiring a reimbursement agreement with the City shall provide the following information to the City Water Services Division:
1. A copy of the "Letter of Acceptance" issued by the City Engineering Division stating that the completed water or sewer line extension improvements conform to the approved plans and specifications;
2. A full-size mylar copy of the approved construction plans and a redlined print of the approved construction drawings indicating actual facilities installed;
3. Receipts identifying actual design and construction costs, and documentation showing that the developer or owner made payment; and
4. A map or diagram showing all properties which will be benefited by the installed water or sewer line.
B. Reimbursement agreements shall identify the developer or owner to whom reimbursement payments shall be made, and shall include a map and/or diagram indicating the properties benefited by the water or sewer line extension along with the specific line payback charges corresponding to each benefited property for collection purposes.
C. Reimbursement agreements shall state the maximum reimbursement amount potentially available to the developer or owner based on the cost of extending water or sewer lines from which others may be served. Construction and design costs shall be submitted to the City Water Services Division in writing by the developer or owner. The construction and design costs shall be reviewed and approved by the City Water Services Division and shall be used to determine the maximum reimbursement amount to be set forth in the reimbursement agreement. The developer or owner shall receive reimbursement from line payback charges collected by the City within the payback period only from those developers or owners who subsequently tie into, and receive a benefit from, the water or sewer line installed by the developer or owner.
D. Reimbursement agreements shall provide for a maximum payback period of ten (10) years after the effective date of the reimbursement agreement; provided, however, the City Council may extend the payback period for up to two (2) consecutive five (5) year extensions and not to exceed a total of twenty (20) years after the effective date of the reimbursement agreement, upon a City finding that: (1) Development within the assessment boundary is ongoing or imminent; and (2) The properties within the assessment boundary will be benefited or served by the improvements for which they will be assessed. Upon the expiration of the maximum payback period, all reimbursement rights held by the developer or owner under the reimbursement agreement shall terminate.
E. Upon the City’s receipt of the administrative charge defined in subsection (H) of this section and the execution of the reimbursement agreement the City shall record with the Coconino County Recorder’s Office, as to each benefited property, a notice of line payback charge, setting forth the terms of the reimbursement agreement. When the line payback charge has been collected for any given benefited property, the City shall record with the Coconino County Recorder’s Office a release of the original notice of line payback charge for that property.
F. The City shall establish a separate account for the collection of line payback charges and disbursement of reimbursement payments. All sums collected shall be paid in accordance with the reimbursement agreement, within ninety (90) days of receipt by the City. There shall be no interest charged or paid on such sums.
G. A developer or owner who constructs a water or sewer line under a reimbursement agreement shall have no right, title or claim to reimbursement after the expiration of the maximum payback period under the reimbursement agreement.
H. The City’s costs of administration shall be paid to the City by the developer or owner prior to the execution of the reimbursement agreement. Such costs of administration shall be five percent (5%) of the total construction costs incurred by the developer or owner for the portion of the water or sewer line which will serve the properties of subsequent developers or owners. Such costs of administration shall not exceed ten thousand dollars ($10,000.00) and shall not be reimbursable. (Ord. 2022-33, Amended, 12/13/2022)
7-08-001-0006 LINE PAYBACK CHARGES
For purposes of this Chapter, the amount of each water or sewer line payback charge shall be determined by the City Utilities Division and shall consist of the developer’s or owner’s pro rata share of water or sewer line construction costs based on the total lineal footage of each frontage of the benefited property or on the area of the benefited property as calculated by acreage. A frontage shall be any portion of a parcel of real property that abuts the public right-of-way in which the water or sewer line has been constructed. The required line payback charge, including all costs, shall be paid to the City in full prior to the issuance of any building permit, water meter permit or the issuance of any type of permit, certificate or authorization for occupying a development, or for connecting to a water or sewer line that is subject to a reimbursement agreement.
7-08-001-0007 ASSIGNMENT
A developer or owner may assign the benefits arising out of a water or sewer reimbursement agreement with the City. Any such assignment shall be in writing, fully executed by the parties to the assignment, and shall not relieve the developer or owner of responsibility for performance of the duties and obligations under the reimbursement agreement. The assignment shall require the written approval of the City Manager.
7-08-001-0008 MINIMUM REQUIREMENTS FOR LINES
All property for which water or sewer service is desired shall, as a minimum requirement of service, be provided with, a minimum of an eight-inch (8") sewer main or eight-inch (8") water main for the entire frontage of the parcel as defined in the City of Flagstaff engineering standards.
7-08-001-0009 OVERSIZING
A. In the event that the City requires the construction of a water or sewer line larger in diameter than that required by a developer or owner, the City may elect to pay for the cost difference between the size of the line required by the developer or owner and the size of the line required by the City, subject to the availability of sufficient funds in the City’s capital improvements budget. In the event that there are insufficient funds available, the City shall have no responsibility or requirement to pay for oversizing. In such event, the additional construction cost for the larger line may be recovered by the developer or owner through a reimbursement agreement and line payback charges.
B. In the event that the City elects to pay for oversizing, the City and the developer or owner shall enter into an oversizing agreement that shall set forth the proportionate costs to be paid by the City and the developer or owner.
7-08-001-0010 DEDICATION OF RIGHT-OF-WAY
No water or sewer service lines or facilities shall serve any parcel of land unless such lines or facilities are located within a dedicated public right-of-way or public easement.
(Ord. No. 2007-19, 02/20/2007)