Chapter 13.04
WATER SYSTEM POLICY
Sections:
13.04.050 Replacement cost responsibility.
13.04.060 Initial connection cost.
13.04.070 New installations inside city.
13.04.080 Installation through undeveloped area.
13.04.090 Delayed benefit charge.
13.04.100 New installations outside city.
13.04.010 Purpose.
To insure the orderly growth of the water system of the city, and to avoid the errors and inequalities produced by treating each new addition and replacement to the system as a separate problem without relation to the whole, the city council has deemed it necessary and advisable to adopt a uniform policy for the guidance of those employees of the city entrusted with the operation of the system, for future city councils and for other interested parties, and to that end this chapter has been prepared. (Ord. 356 § 1, 1957)
13.04.020 Intent.
It is the express intent of the city council that the water department shall be a self supporting utility operated without drawing upon the general funds of the city. (Ord. 356 § 2, 1957)
13.04.030 Definitions.
Whenever the following terms are used in this chapter they shall be construed to mean as follows:
A. “Standard commercial water mains” means water mains constructed of cast iron, or equivalent, six inches in diameter.
B. “Standard construction costs” means the cost of the pipe for either the standard residential water mains or standard commercial water mains, whichever is to be installed, plus the total cost of all tees and junctions and the total cost of all installation and incidental work necessary to place the water pipe in service regardless of its size, excepting, however, the cost of fire hydrants and extensions thereto which shall be paid out of the revenues of the water department.
C. “Standard residential water mains” means water mains constructed of cast iron, or equivalent, four inches in diameter. (Ord. 356 § 4, 1957)
13.04.040 Specifications.
All specifications for extensions, expansions, additions, betterments and replacements to the existing water system shall be determined by the water superintendent subject to the following limitations:
No water main shall be installed which is less than four inches in diameter; provided, however, the city council may, upon receiving a specific request for the same, allow an installation of less than the minimum diameter where the installation involves only a stub street less than 300 feet long and where the main cannot possibly be extended at any future time due to the topography of the land. (Ord. 356 § 3, 1957)
13.04.050 Replacement cost responsibility.
Whenever any main for water service, now or hereafter installed, requires replacement due to obsolescence, inadequacy, or deterioration, the cost of the replacement shall be paid for out of the revenues of the water department; provided, however, any property abutting on any such main which has never been connected therewith or which has not previously been assessed or has not previously contributed to the standard construction costs of the main, shall pay a delayed benefit charge at the time of connection to the utility which charge shall be the abutting property’s proportionate share of the standard construction costs of such main based on the front foot method of assessment; provided further, if the property has, prior to the effective date of the ordinance codified in this chapter, been connected to the water system and has been paying the established water rates, the property shall be exempt from the provisions of this section. The delayed benefit charge shall be in addition to any and all connection charges and other charges required to be paid for the services by any ordinances of the city; provided, however, the payment of any such delayed benefit charge shall exempt the property for which the payment was made from any subsequent local improvement district assessment for water facilities of any nature. (Ord. 356 § 5, 1957)
13.04.060 Initial connection cost.
When any property abutting on a standard commercial water main or standard residential water main, as defined in NMC 13.04.030, has not previously been assessed or has not previously contributed to the standard construction cost of the main, the property shall at the time of connection to the water system, pay a delayed benefit charge which charge shall be the abutting property’s proportionate cost of the standard construction cost of the main based on the front foot method of assessment. The delayed benefit charge shall be in addition to any and all connection charges and other charges required to be paid for such services by any ordinances of the city; provided, however, the payment of any such delayed benefit charge shall exempt the property for which the payment was made from any subsequent local improvement district assessment for water facilities of any nature. (Ord. 356 § 6, 1957)
13.04.070 New installations inside city.
Whenever any area or areas within the city which are not now served by the water system requests such service, the person or persons making the request shall provide for the payment of the standard construction costs by means of local improvement districts in the manner provided by law or by direct installation under the specifications and supervision of the water superintendent of the city. In the event the city requires the installation of mains in excess of those defined in this chapter as standard, the actual additional cost of the main in excess of the standard size shall be paid for out of the revenues of the water system. (Ord. 356 § 7, 1957)
13.04.080 Installation through undeveloped area.
Whenever the services of the water system are required to be extended through an undeveloped area within the city, in order to provide such service to a newly developed area and where in the opinion of the city council it is not feasible to finance the improvement by the formation of a local improvement district in the manner provided by law to pay the standard construction costs as defined in NMC 13.04.030, the property in the undeveloped area directly abutting on the water service extension shall be subject to a delayed benefit charge, which shall be paid by the owner or owners of the abutting property within the undeveloped area at the time they request such service and prior to their receiving it. The amount of the delayed benefit charge shall be the property’s proportionate share of the standard construction costs based on the front foot method of assessment as determined from the books and records of the utility which paid for the total original cost of the installation. The delayed benefit charge shall be in addition to any and all connection charges provided for the service by other ordinances of the city; provided, however, the payment of any such delayed benefit charge shall exempt the property for which the payment was made from any subsequent local improvement district assessment for water facilities of any nature. (Ord. 356 § 8, 1957)
13.04.090 Delayed benefit charge.
Whenever provision is made throughout this chapter for the payment by any property owner of a delayed benefit charge, the delayed benefit charge may be paid in cash or in annual installments over a five-year period from date of connection. If any such property owner elects to make payments on the annual basis, he shall execute a contract in such form as shall be prescribed by the city council, which contract shall contain the provision that any unpaid balance may be paid in full on the date of any annual payment and the further provision that interest shall be paid on the deferred balances at the rate of five percent per year. The contracts shall be made a covenant running with the land and shall provide that the unpaid balances shall be a lien upon the property to which the connection is made, superior to all other liens and encumbrances except those for general taxes and special assessments, which may be foreclosed in the same manner provided by law for the foreclosure of delinquent local improvement district liens. The contract shall be recorded in the office of the county auditor at the expense of the property owner and upon payment in full a release of the lien shall be executed by the mayor and attested by the city clerk/treasurer. The contract shall further provide that in the event of delinquency in the payment of any installment thereunder the water superintendent, or his employees, may disconnect the city’s water service from and refuse to supply water for the premises in default until the delinquent payments are paid in full, this remedy to be concurrent with and in addition to the city’s right to foreclose the lien as provided in this section. (Ord. 356 § 9, 1957)
13.04.100 New installations outside city.
Whenever water service is requested by any person or persons residing outside the corporate limits of the city, and within the state, the following provisions shall apply:
A. All rates for water furnished outside the limits of the city shall be uniform;
B. Any person desiring water service outside the city limits shall pay the applicable connection charge as established by ordinance or resolution;
C. Any person developing property outside the city limits and desiring city water service shall pay the total cost of all mains to be installed within the area being developed, including all costs of installation. No water main shall be installed which is less than four inches in diameter, except by special permission of the city council first obtained which permission shall be limited to the condition provided in NMC 13.04.040;
D. That cost of all reservoirs, storage tanks, pumps, pumping stations and incidental piping for such reservoirs or storage tanks to the area to be served, shall be paid for by the person requesting such service, based on the estimated cost, as determined by the water superintendent, prior to the installation of the service; provided, however, that the cost to be paid by the person shall not exceed that proportion of the total costs of the facilities which the newly developed area bears to the total area which may be served by the facilities. The person requesting the facilities and paying the cost thereof may receive credit for the amount so paid for the facilities by designating to the water superintendent by legal description the lots within the newly developed area which are to be served by the water service. As to the lots the cost provided in subsection B of this section shall not apply until the credit has been fully exhausted;
E. The delayed benefit charges as provided in the preceding sections of this chapter shall apply equally to areas beyond the limits of the city; provided, however, the total cost of the delayed benefit charges shall be paid prior to allowing any person beyond the limits of the city to connect to the water utility service. (Ord. 356 § 7, 1957)