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HomeMy Public PortalAbout06-recoupment_0Revised 2/15/2015 95 6. RECOUPMENT RULES AND REGULATIONS 6.010 General Any owner or owners of real property within the District and within the area to be sewered may make application to the District for the private construction of sanitary sewers, combined sewers, pumping station, sewage disposal plants and any other sewer facilities which will herein-after be known as "sewer facility" for purposes of those recoupment rules and regulations. The Board of Trustees of the District shall decide whether or not it is in the public interest to proceed with such private construction under the recoupment program. 6.020 Contract Between District and Owner(s) If the Board finds it is in the public interest to privately construct the sewer facility, the Director shall have the power to contract with the owners of the real estate for the construction of the sewer facility to serve the area in which the real estate is located, and such other area as can be efficiently served by the sewer facility to be constructed. Approval of the contract by the Board of Trustees is necessary to make it binding. 6.030 Recoupment Provisions Any contract discussed in Section 6.020 shall also provide for the reimbursement to the owners by any owner of real estate who directly or indirectly taps into or uses the same and did not contribute to the original cost of the sewer facility. The reimbursement amount shall be the fair pro-rata share of the cost of construction of said sewer facility, subject to such reasonable rules and regulations as the Director may provide, before plan approval by the District. Construction inspection and final inspection shall be performed on all construction of recoupment sewer facilities. The recoupment is only for the additional cost of sewer facilities built larger, i.e. greater in size, than the minimum size required for the project outfall. An 8” diameter sanitary sewer is the normal minimum size of pipe for a project. However, a very large project could require a larger size minimum diameter. No guarantee is made of full recovery within the term of the contract. The contract has a 10-year term and is non-interest bearing. It is paid out of 75% of the connection fee collected by MSD from subsequent, tributary development by others, if any during the life of the contract. The costs as described in Section 6.040 shall be furnished to the District and certified by the Owner for approval as further described in Section 6.040. 6.040 Recoupment Procedures and Project Costs A formal letter requesting recoupment must be initiated by the owner. Plans, specifications and three competitive sealed bids of the complete cost of construction or a copy of the proposed contract for the construction and a tributary area map must be submitted to and receive the approval of the District before plan approval by the District. Construction inspection and final inspection shall be performed on all construction of recoupment sewer facilities. Certified costs actually expended for labor and materials, obtaining rights-of-way, permit and inspection fees, insurance, bond premiums, legal and engineering fees, and other costs essential to the construction of the sewer facility shall be furnished to the District for approval. Proof of payments are required. The Executive Director shall examine these costs and upon his approval, as rendered or as adjusted, they shall be certified by him as the complete construction costs of the facility. 6.050 Objections to Certified Completed Construction Costs Any person objecting to the amount of the approved total construction costs of the sewerage facility, as certified by the Executive Director, may appeal to the Board of Trustees of the District by filing, in writing, with the Secretary of said Board the specific objections to said costs. Upon receiving such appeal, the Board of Trustees will consider the matter, and after consideration of all the facts will finally certify the approved total construction costs of the sewerage facility. 6.060 Recoupment Fees Recoupment fees shall be determined by applicable ordinances of the District. They shall be payable to the District and/or its Agents or Assigns. Revised 2/15/2015 96 6.070 Areas Served by More Than One Sewer Facility Under Recoupment For properties served by two or more sewer facilities constructed under separate recoupment agreements, charges shall be divided proportionately between the builders of the facilities based upon the ratio of the actual cost of each recoupment agreement to the total actual cost under all agreements. 6.080 Connection to Recoupment Sewer Facility The District shall not approve any plan or issue any permit for a connection to the sewer facility until payment has been made to the District or its Agents or Assigns, of the pro-rate share of the certified cost of the sewer facility. 6.090 Reports of Owner of Sewer Facility 6.090.01 Annual Each year, on or before January 31, a report shall be filed with the District giving the correct name and address of the owner of the sewer facility, and a record of all payments received for connections to said sewer facility prior to January 1 of the year for which the report is filed, along with a statement of the remaining balance. Failure to file this report shall cause the District to send by registered mail, a notice to the last recorded address of the owner of the sewer facility registered with the District. If the owner fails to file the required report within the designated time noted in said notice, the recoupment contract shall then become null and void and no further recoupment fees shall be collected. 6.090.02 Interim If at any time the Executive Director has probable cause to suspect that the owner of any recoupment sewer facility is not performing any of the covenants of the recoupment agreement, he may make demand, by registered mail, for a report giving the information required in the annual report, for that portion of the calendar year prior to the date of such demand. If the owner fails to file such report within the designated time noted after the date of such demand, the recoupment contract shall then become null and void and no further recoupment fees shall be collected. 6.100 Extent of and Time Limits of Recoupment The right to recoup construction costs shall continue until the total amount of all pro-rata shares collected from all parcels connected to the sewer facility, excluding interest where applicable, equals the certified construction cost of the sewer facility as approved by the District. This recoupment period shall last for a period of time to be established by the District.