Del Mar Municipal Code Ch. 22.14 Sewer Construction Reimbursement Connection Fees

It is the purpose of this Chapter to allow a reimbursement connection fee at the time of connection, when the sewer service has been made available by a private developer, prior to the time that the City would have been able to make the sewer service available. The purpose of the reimbursement connection fee is to reimburse the person privately constructing the sewer system, which is dedicated to the public and offered to the City.

(Ord. No. 697)

A. The City and the developer may enter into a reimbursement agreement in which the developer agrees to dedicate the sewer main to the public and offer the sewer main to the City.

B. Upon completion of work and acceptance by the City, the sewer main will become the property of the City. All maintenance and future replacement will then become the responsibility of the City.

C. Upon acceptance of the sewer main by the City in accordance with Section 4742.3 of Health and Safety Code, the City may adopt an Ordinance imposing a reimbursement connection fee for connections to that sewer main. The reimbursement connection fee shall be determined by the City Engineer and shall provide funds to reimburse the developer for costs of the main which benefit other property owners which connect to the main. The reimbursement connection fee shall include a six percent per annum simple interest charge to partially compensate developer for his financing costs. The developer shall not be reimbursed for his fair share of the project costs (that portion of the improvement costs that directly benefit his development). The City shall return the collected reimbursement connection fees to the developer, less administration fees and any other costs or fees, in accordance with the terms of this reimbursement.

The period over which special connection fees are collected shall be either ten or 20 years:

A. Projects with a total reimbursable cost of less than $50,000.00 shall have a ten-year reimbursement period.

B. Projects with a total reimbursement of $50,000.00 or more, and in which the City Engineer estimates that less than two-thirds of the reimbursement can be collected in ten years shall have a 20-year reimbursement period.

When a sewer main extension has been installed and a reimbursement agreement amount has been approved by the City Council, and benefiting property owner, prior to connection to the sewer system, who has not either himself or through his predecessor-in-interest contributed toward the cost of such installation, shall pay to the City, in addition to any sewer connection/capacity fees required by this Code or any other Ordinance of the City, the reimbursement connection fee for such sewer main extension, at the rate provided for by Ordinance of the City Council.

The following sewer reimbursement Agreement has been entered by the City of Del Mar City Council.