Solana Beach Municipal Code Ch. 14.12 Sewer Construction Reimbursement Connection Fee

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. 338 § 1, 2005)

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 main to the city.

B. Upon acceptance of the sewer main by the city in accordance with Section 4742.3 of the Health and Safety Code, the city may adopt a resolution 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 benefits other property owners that connect to the main. The reimbursement connection fee shall include a six percent per annum simple interest charge to partially compensate the 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 benefits 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 the reimbursement agreement. (Ord. 338 § 1, 2005)

The period over which special connection fees are collected shall be no longer than 10 or 20 years:

A. Projects with a total reimbursable cost not exceeding $250,000 shall have a 10-year reimbursement.

B. Projects with a total reimbursement of $250,000 or more and in which the city engineer estimates that less than two-thirds of the reimbursements can be collected in 10 years shall have a 20-year reimbursement period. (Ord. 338 § 1, 2005)

When a sewer main extension has been installed and a reimbursement agreement amount has been approved by the city council, any 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 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 resolution of the city council. (Ord. 338 § 1, 2005)