Whenever any water main or mains have been extended in any streets, alleys or highways within the limits of the City, a front foot assessment shall be levied by the Bureau of Water upon all properties fronting upon the streets, alleys or highways at the rate of $3 per foot on each side of the street, alley or highway in which the main is laid or extended. However, on any street, alley or highway in which it is impossible or impracticable to lay the main in the center of the street, the Director of the Department of Public Works may direct mains to be laid on both sides of the street at the curbs, in which case the assessment per front foot shall be $4 instead of $3 as hereinbefore provided.
The Director of the Department of Public Works shall levy or cause to be levied the water frontage assessment for the installation of such main or mains and certify the same to the City Treasurer. The assessment shall be due and payable upon notice of such assessment being given the City Treasurer to each owner assessed. If not paid within 30 days thereafter, a penalty in accordance with Chapter 36, Municipal Claims, shall be added thereto and an accurate description of their several properties shall be certified by the City Treasurer to the City Solicitor, who shall enter the same, plus all other amounts due under Chapter 36, Municipal Claims, and pursue any or all of the remedies identified in Chapter 36, Municipal Claims, including but not limited to as liens on the proper dockets and proceed to collect the same according to law.
In the case of corner lots, the assessment shall be levied in full for the length on which the improvements erected on such lots, or intended to be erected, front. When mains are laid in the street adjoining the side of such corner lot, an allowance of 100 feet shall be made. However, when a corner lot has erected upon it two or more separate tenements, there shall only be an allowance equal to the depth of the corner tenement.
In all cases where an extension of City water mains has been requested by a prospective extendor and the anticipated income to be derived from such extension does not warrant that the capital investment required therefor be made by the City, then, if the proposed extendor still desires to have such water main extension made and is willing to pay the cost thereof and the City is willing to have such extension made to its water supply system, the same shall be done on the terms and conditions outlined herein.
A. 
No extension of water lines shall be permitted for a pipe having a diameter of less than six inches.
B. 
The extendor shall cause such water main extension to be laid in accordance with City specifications and at all times subject to City inspection and approval and shall pay for the entire cost of such extension, provided that if the City so elects, it may require the extendor to make the extension of pipe having a larger diameter than the extendor requires for his own use. If the City requires the extendor to lay a larger pipe than the extendor requires, it shall pay the extendor the difference in the cost of the size pipe needed by the consumer and the size pipe prescribed by the City for such extension.
C. 
Any extendor shall satisfy the Director of Public Works that he is financially able to pay for the cost of the proposed extension. Actual construction work for the same shall commence within 60 days of the date of the extension agreement between the City and the extendor and shall be completed within a reasonable time, or at the option of the City, the extension agreement shall be canceled at no cost to the City. The Director may, for good and sufficient cause, grant the extendor additional time to start construction, but such construction shall be started unless the entire project is assured of completion according to plan.
Upon completion of such water line and its approval and acceptance by the City, the line shall be and remain the property of the extendor, who shall thereupon lease the same to the City upon the following terms and conditions:
A. 
The term of the lease shall be for a period of no more than 10 years from the time the line is placed in service.
B. 
The City shall maintain and operate the line, bearing all expense with relation thereto, and serve water therefrom to the consumers and other parties connecting to the same.
C. 
The extendor shall receive water from the City through such line and pay the City for the same at the published rates of the City for such service which may be in effect from time to time during such service. The consumer shall be bound by all rules and regulations of the City relating to water service.
D. 
During the term of such lease, while ownership of the line remains in the extendor, no other person shall be allowed to connect to such line unless such person pays the extendor a connection fee in accordance with the following schedules which shall apply for single service connection to a single property.
(1) 
The following connection fee rates shall apply when the extension was performed by municipalities, commercial enterprises and developers;
Service Connection
Size
(inches)
Fee
3/4
$100
1
$150
1 1/4
$200
1 1/2
$300
2
$500
4
$2,000
(2) 
This connection fee shall be applicable where a three-fourths-inch or one-inch connection is made to an extension that was performed as a noncommercial, nondevelopmental extension by owners or occupants of residential properties acting either individually or in combination for the purpose of extending water lines to their properties for their personal use. In such cases the connection fee for each new connection shall be a sum computed by multiplying the total cost of the water main, less any extension fees paid from time to time pursuant to Subsection E hereof, by a fraction, the numerator of which shall be one and the denominator of which shall be the sum of the number of properties single service connected to the water main as of the date of the new connection plus one representing the new property to be connected.
(3) 
Example.
(a) 
Assume six property owners combined to extend a water main at a cost of $1,000. Further assume that a total of 10 properties are located along the line but that four of them did not elect to participate in construction of the line. The connection fee that would be charged in the event that any of the four properties would later elect to connect to the water main would be computed as follows:
Connection fee
=
Total cost of Water Main x Number of properties single service connected + 1 for the new property
$142.85
=
$1,000 x 1/6 + 1
(b) 
Based upon the above example, the seventh property to connect would pay an extension fee of $142.85 which would be paid to the original six extenders, $23.80 each, and would reduce their original cost from $166.66 each or 1/6 of $1,000 to $142.85 or the same as the seventh connector. When the eighth property connected, its cost would be $125 or 1/8 of $1,000 with the connection fee being returned to the original six extenders and so on through the ninth and 10th connectors.
E. 
In the case of another extendor who wishes to connect to such water main for the purpose of laying his own main to serve a number of prospective consumers therefrom, such extendor shall pay the owner/lessor an amount which represents no more than 50% of the cost of such water main up to the point of such connection after deducting from such cost any connection fees already paid for connections to the water line up to the point of connection. Such other extendor shall not be entitled to receive any connection fees for connections made to the original line, but shall be entitled to be reimbursed for the line which he himself pays for in accordance with a lease similar to that provided for herein.
F. 
At no time shall the extendor be entitled to recover more than the total cost of the water line, calculated without interest. If such total cost has been recovered prior to 10 years from the date when the line was placed in service, the lease shall terminate at the time of the recovery of such cost. If the total cost has not been recovered within 10 years from the date when the line was placed in service, it shall terminate, in all events, at the end of the ten-year period and the right of the extendor to recover any more costs shall cease.
G. 
The City shall charge an extendor or single service connector a service fee of 5% of the extension or connection fee, but not more than $100, which shall be paid by the extendor or connector, in addition to the fee due, to compensate the City for services performed related to the connection or extension.
H. 
Upon termination of the lease, the extendor shall dedicate the water line to the City Authority and it shall thereupon become a part of the water distribution system.
The City shall have the right at all times to make connections to the lines of the extendor and lay additional water mains at its own cost, without the payment of any connection fee to the extendor, provided that such extensions and additions so made by the City are solely for the improvement of its water service and no consumers are connected thereto. If any consumer connections are made to any such additions made by the City, then such lines shall be subject to the terms of the lease as if made by a private extendor.
In the event that the City makes a contribution towards the cost of laying the water line, representing the difference in cost of the size of pipe as contemplated in § 295-77B, then such contribution shall be deemed to represent as many linear feet of water line as the linear foot cost of the entire line, and the City Authority shall own the initial number of linear feet thus represented, so that the line owned by the extendor and leased to the City shall be deemed to start at the point where the initial number of linear feet ends. (Example: A twelve-inch water line for 5,000 linear feet costs $50,000 or $10 per linear foot. The City contributes $15,000 for the difference in cost between six-inch pipe and twelve-inch pipe. The City Authority would own the initial 1,500 feet of twelve-inch water line and the remaining 3,500 feet would be owned by the extendor and leased to the City as herein provided.)
The final decision on whether or not an extension to the water lines shall be permitted on the conditions outlined herein or otherwise shall be and remain with the City. The City Authority, which shall become the ultimate owner of water lines extended as herein provided, shall be notified of each lease agreement relating thereto and receive a copy thereof.