Milpitas Municipal Code Art. X Reimbursement Contracts and Grants in Aid

If for any reason City is unable to advance to installer the amount of net credit due him under Section 7.05C, he may apply to City Council for a Reimbursement Agreement. Any such reimbursement Agreement shall provide for the following:

A. A termination date no later than 15 years from date of contract by City.

B. Termination upon repayment to installer or an amount equal to the amount of credit due him as specified by the agreement.

C. Termination upon withdrawal from the City of sewer lines or property covered by the agreement.

D. Annual disbursement to installer of his pro-rata share of any fees collected by City under Section 7.05 from property described on the Benefit Area Map which is a part of his Reimbursement Agreement.

(Ord. 208 (part), 6/17/80)

Where the City Council determines that the best interests of the City shall be served by an extension of trunk or main sewers, it may agree to grant in aid of construction all or any part of the Excess Cost allowed to any installer which is more than the fees provided for by Section 7.05.

A. Applications for such grants in aid by installers or prospective installers shall be made twice per year prior to July 1 and prior to January 1 and shall be acted upon by the City Council in due process.

B. The source of monies for such grants-in-aid shall be the Sewer Extension Fund.

C. Each application for grant-in-aid under this section shall make provision for the following items which shall be evaluated by the City Council prior to allocation of funds:

(1) Dollar value of City expense.

(2) Number of septic tanks eliminated per dollar of City expense.

(3) Recommendation in writing, if any, from Health Department.

(4) Number of acres to be served by the proposed extension.

(5) Number of acres to be served per dollar of City expense.

(6) Number of years required to amortize City's expense by property tax based on a tax rate of $0.16 applied to property to be served.

(7) Potential connection fees per dollar of City expense which will be derived from the proposed extension.

(8) Population to be served per dollar of City expense.

(9) Tax base per capita to be created by development of installer.

D. The City Council may approve or reject any or all parts of any application made for grant-in-aid under this section.

E. No denial of any application shall prejudice a future application of the same or a similar project.

F. Nothing contained in this section shall be construed as requiring the City to spend all or any part of the monies in the Sewer Extension Fund.

(Ord. 208 (part), 6/17/80)