Montague Municipal Code Art. II Reimbursement for Construction of Water Extensions

The provisions of this article shall be applicable only to owners and developers of legally buildable residential lots not exceeding four contiguous lots. (Ord. 174 § 1, 1981)

When an owner or developer to whom this article is applicable, as set forth in Section 13.04.260, installs to the lot or lots, an extension to the city's water line for the purpose of water service to such lots, the owner shall be reimbursed up to his costs. The reimbursement shall be made from water capital fees charged the applicant for water service, whose service is connected to such extension; provided further, that such fee is paid in full at the time a building permit is issued. Such reimbursement shall in no event exceed eighty percent of the fee charged to such individual applicant; provided further, that the city's obligation for such reimbursement or any part thereof shall cease ten years from the date the first building permit for the eligible lot is issued. (Ord. 174 § 2, 1981)

In order to qualify for such reimbursement, the owner or developer shall, prior to any construction of the extension, submit to the city a complete set of plans and specifications and the estimated costs in connection therewith. No installation of an extension shall be made without the prior written approval of the city and such approval shall not be given unless all fees including capital investment fees, service connection fees and new construction fees, have been paid, or an arrangement for their payment satisfactory to the city has been made. (Ord. 174 § 3, 1981)

Upon completion of the construction of the extension, the owner or developer shall submit to the city an affidavit attesting to the true costs of the installation, including a warranty of no outstanding liens or encumbrances affecting the construction of the extension, and further, that the extension meets city standards in furnishing water services. (Ord. 174 § 4, 1981)

As a further requirement to qualify for reimbursement, the owner or developer shall transfer title to the extension to the city, together with an easement for maintenance and repair. (Ord. 174 § 5, 1981)

When all requirements have been met, the city clerk shall note water service records, setting forth the name and last known address of the owner or developer, or their successor in interest and assigns. At such time as applicants for water service, who are connected to the extension referred to in this article, pay the capital fee in connection with furnishing water service, the city clerk shall draw a warrant in favor of the owner or developer or assigns for the amount of reimbursement permitted under this article. (Ord. 174 § 6, 1981)