Gilroy Municipal Code Art. IV Public Sewer Extensions

An owner of real property within any district or area that has been annexed to the city and become a part thereof subsequent to the enactment of this article or of real property in the city that has not been subjected to the cost of the furnishing, construction and/or installation of sewers in the city either by being a part of the city when bonds were voted and issued for such sewers or by being in an improvement or assessment district formed for such purpose, may apply in writing to the city for an extension of the sewer system of the city to such a point as will permit the applicant to connect his property therewith. Such application shall contain a description of the applicant’s property and shall be referred to the director of public works.

(Ord. No. 477A, § 1)

The director of public works shall make an investigation of the work to be done under the application, and the estimated cost of making the extension applied for, and also a statement or recommendation as to whether in his opinion it is feasible and practical to make the extension; two (2) or more property owners in the same general area may join in an application, in which event the report of the director of public works shall include the estimated cost of making the extension under all the applications and the proportion of the estimated cost the owner of each parcel of property shall bear.

(Ord. No. 477A, § 1)

It shall be the duty of the director of public works, when requested by the city council, to prepare a plat and indicate the boundaries of the area which will be benefited by the sewer main extension, and the same shall be filed with the city clerk for reference to the council. In considering the application for the extension and the report and recommendations of the director of public works, the council shall determine the definite estimated cost of the proposed extension and its feasibility, and may then, if it determines such extension to be feasible and practical, enter into a written agreement or agreements with such applicant for the extension of the sewer system in accordance with the provisions of this article and the laws in such cases made and provided.

(Ord. No. 477A, § 1)

Whenever the extent of the applications is such as to justify, in the opinion of the city council, after an investigation, larger mains or more extensive installations than those immediately required by the applicants, because of probable future needs, development and growth of the general area in which the property covered by the applications is located, or of adjacent or intermediate areas, such additional or increased facilities may be made a part of the project and financed by the city. The director of public works in such event shall include in his estimate of the cost of the extension the portion thereof which the city will finance under such circumstances.

(Ord. No. 477A, § 1)

The city council may, if it believes the extension of the sewer system should be made in accordance with the application required in section 19.42, adopt a resolution providing that, when the agreements with the applicants, mentioned in this article, have been executed by the applicants and the cost to be borne by the property owners either paid or the lien and installment agreements described have been executed, the extensions will be made. The resolution shall specify that part of the cost of the extension to be borne by the city, if any, and the part that is to be borne by the applicants.

(Ord. No. 477A, § 1)

No work shall be begun upon the extension of the sewer system until that part of the estimated cost to be borne by the applicants shall be paid to the city, or the lien and installment agreements described, have been executed and all rights of way necessary secured.

(Ord. No. 477A, § 1)

Where the applications for an extension of the sewer system of the city under the provisions of this article relate to a particular area or section of the city so that the same may be termed a district, the work of constructing the extension of the sewer and water system into the area pursuant to the applications may be undertaken by the city, even though some property owners may not have signed applications or paid or agreed to pay their share of the cost thereof. In cases where the nonsigning owners are few in number compared with the total number of applicants, the city may initially pay the cost of the sewer extension which such property owners would have paid had they executed an application pursuant to this article, if, in the judgment of the city council, the city can afford to defray the expense, and the amount thus expended may, in its judgment, be recoverable under other provisions of this article.

(Ord. No. 477A, § 1; Ord. No. 498, § 1)

Applicants for an extension of the sewer system shall pay the amount as determined in accordance with the preceding provisions of this article to the city in full, or sign a written agreement in individual cases to pay applicant’s proportionate part of the cost in case there is more than one applicant, or the entire cost where there is a single applicant, in installments of not less than twenty per cent thereof at the time of the signing of the agreement, twenty per cent thereof three months after the work on the proposed sewer extension is commenced, and twenty per cent each three months thereafter until the same is fully paid, before any work is begun on the extension.

(Ord. No. 477A, § 2)

The written installment agreement provided in the preceding section, signed by the applicant, together with a lien agreement upon the property covered by such application signed by the owner to secure the same, shall be filed with the city clerk. Such installment agreement and lien agreement shall have the usual provisions contained in a promissory note and deed of trust, including the provision that the deferred balance shall bear interest from time of commencement of work upon the extension to the date when paid at the rate of seven per cent per annum, and that in the case of foreclosure all necessary and reasonable court costs, including the cost of obtaining a title insurance policy on such property for foreclosure purposes, and all other expenses incurred by the city in protecting such security shall be paid by the property owner.

(Ord. No. 477A, § 2)

The city may, before accepting the installment and lien agreement, require that the applicant furnish a title insurance policy showing the condition of the title to his property at the time, and may reject any agreement unless it satisfactorily appears that such lien agreement constitutes good and sufficient security for the payment of the deferred installments. All such lien agreements shall be approved by the city attorney as to form.

(Ord. No. 477A, § 2)

The city council shall not be obligated to accept any installment and lien agreement in lien of a full cash payment in instances where it deems the security either inadequate or where the number of such agreements proposed on any sewer extension project will, in the judgment of the council, create too large a financial burden upon the city at the time or increase its financial responsibility beyond the amount justifiable in the opinion of the council.

(Ord. No. 477A, § 2)

A separate installment and lien agreement shall be required of and executed by each applicant desiring to use that method of financing his proportionate cost of the work.

(Ord. No. 477A, § 2)

The city, after the estimated cost of the extension to be borne by the property owners has been either paid to the city or provided for by installment and lien agreements, may either do the work connected with the extension itself or ask for bids and let the work by contract. If the city does the work, it shall keep an accurate account of the cost thereof. The monies paid by the applicants to the city to cover their part of the estimated cost shall be deposited in a fund to be kept by the city treasurer separate from other funds of the city.

(Ord. No. 477A, § 3)

The extension of the sewer system applied for and the work to be done in connection therewith, if done by the city, shall be performed under the direction of the director of public works of the city. Upon the completion of the work, a statement in writing setting forth the total cost of the extension shall be submitted to the city council and filed with the city clerk, and the director of public works shall file with the city clerk a statement apportioning to each applicant his share of the cost of the work.

(Ord. No. 477A, § 4)

The apportionment provided in the preceding section shall be based upon the proportionate number of front feet of land belonging to each applicant as described in his application. If, when the work is completed, it shall be found that the actual cost thereof is less than the estimated amount, the excess of money paid to the city shall be refunded to the applicants in the same proportion that it was paid to the city. The amount to be refunded to those executing lien and installment or installments provided by such agreement to be paid.

(Ord. No. 477A, § 4)

In the event that the actual cost of the work exceeds the estimated amount, the applicants, including those executing installment and lien agreements, upon notice and demand, shall forth-with pay the deficiency in the proper proportions in cash, and the agreements and installment and lien agreements shall expressly so provide.

(Ord. No. 477A, § 4)

Whenever the sewer system of the city has been extended in accordance with the provisions of this article by the use of funds from voluntary contributions of the property owners or out of such funds jointly with city funds, no property owner in a district to which this article applies, who has not theretofore contributed toward or paid his proportionate share of the cost of such sewer main extension, shall connect with such extension until he has paid to the city such a sum in cash or executed an installment and lien agreement provided for in sections 19.49 and 19.50 of this article, for such a sum as would be his proportionate share of the cost of the extension had he joined with other property owners in asking for the extension at the time it was made, including his share of the cost borne by the city where the extension was so made as to be of more than local benefit, or of benefit to other property in addition to that whose owners joined in the original application, and he is a property owner of a class for which the additional or increased facilities were installed.

(Ord. No. 447A, § 5)

It is not the intention of this article, nor shall it be construed, to require a property owner who has already installed or constructed a sewer line or mains to or for his property at his own expense, to bear any part of the cost of any extension of a sewer made pursuant to this article in the event that such extension is connected with the privately installed sewer; provided, that the privately installed sewer is acceptable to the city as conforming to its specifications and requirements, and belongs to and becomes a part of the public sewer system of the city; provided, further that in the event of the extension of any sewer or sewer system under the provisions of this article, if such installation is of additional benefit to those who have already so constructed and installed an acceptable private sewer which is connected or which may be connected in the ordinary way with their property, the owners of such property shall bear such a portion of the cost, to be determined by the city council upon the recommendation of the city administrator and to be paid before making any connection to the extension.

(Ord. No. 477A, § 6)

The land in any subdivision or other tract where there has already been installed, at the expense of the owner thereof, a sewer system or mains acceptable to the city as conforming to the general specifications of its sewers, shall not bear any part of the cost of the extension of the sewer system of the city made pursuant to this article unless such extension is of additional benefit to the subdivision or land in which the sewer has already been installed at the expense of the owner thereof, and then only to the extent of the increased benefit derived from the extension, which increased benefit and the amount to be paid because thereof shall be determined by the city council upon the recommendation of the director of public works, and shall be paid by such owner before connecting his property to the extension or an installment and lien agreement entered into.

(Ord. No. 477A, § 6)

In any area which shall be served by a sewer extension, every structure therein requiring sewage facilities must be connected to a sanitary sewer within thirty (30) days after such sanitary sewer is available, and septic tanks or cesspools connected to the structure shall be disconnected and filled with good sound earth at the time the sewer connection is made. The provisions of this article requiring the disconnection and abandonment of the use of septic tanks and cesspools when the sanitary sewer is available is based upon the knowledge and opinion of the city council that such septic tanks and cesspools are unhealthful, unsanitary and detrimental to the public welfare.

(Ord. No. 477A, § 8; Ord. No. 79-4, § 1, 2-5-1979)

It shall be unlawful for any property owner in a district mentioned in section 19.42 of this article to connect to a public sewer extension installed under the provisions of this article until he has obtained a permit from the proper city authority and paid his share of the cost thereof, or shall have entered into an installment and lien agreement as provided for in sections 19.49 and 19.50 of this article.

(Ord. No. 477A, § 9)

The provisions of this article shall also apply to the extension of water mains where such extension is applied for by the owner of property within any district or area that has been annexed to the city and become a part thereof subsequent to the enactment of this article or of any area or district that has not been subjected to the cost of the furnishing, construction and/or installation of water mains in the city either by being a part of the city when bonds were voted and issued for such water mains, or by being in an improvement or assessment district formed for such purpose; and all the provisions of this article are hereby made applicable to such extensions of water mains and service except the provisions of section 19.62 and such other provisions as may be clearly inapplicable to the extension of water mains.

(Ord. No. 477A, § 10)

In the extension of water mains there shall be added to the project such fire hydrants as may in the judgment of the city council be reasonably required, and the cost thereof shall be borne proportionately by the property owners applying for the extension.

(Ord. No. 477A, § 10; Ord. No. 81-28, § 25, 9-8-1981)

There is hereby established and created a separate fund in the office of the city treasurer which shall be known and designated as the water main extension and connection trust fund which shall be distinct and separate from the sewer main extension and connection trust fund. The money shall be paid into and out of such fund in connection with the extension of water mains on the same basis as monies are paid into and out of the sewer main extension and connection trust fund in connection with the extension of sewer mains.

(Ord. No. 477A, § 11)

All water mains and systems and sewer mains and systems constructed or installed pursuant to this article, and all fittings, hydrants and fire boxes shall be the property of the city.

(Ord. No. 477A, § 12)