Section 13.24.040 Recoupment provisions.

The itemized and verified final costs actually expended by the sponsor for the construction of such sanitary sewer and/or water transmission facilities, (including labor and materials, obtaining rights-of-way, permit fees, insurance, bond premiums, legal fees, engineering fees, and other costs essential to the construction of the facilities) shall be filed with the city clerk, and the city clerk shall furnish the same to the city engineer or his designee. The city engineer or his designee shall examine said costs and make a recommendation to the city council with regard to the necessity and reasonableness of the same, and as to whether the same should be approved as submitted or adjustments made. The city council shall then determine the amount of the appropriate costs of construction that shall be subject to the recoupment under this code (the “total recoupment amount” or the “recoupment”).

The area reasonably expected to be served by the water and/or sanitary sewer facilities shall be the FPA of the city, as the city’s FPA exists at the time of the making of the recoupment agreement or as the city’s FPA may thereafter be amended. The owner of a lot, tract or parcel of land in the city’s FPA which receives sanitary sewer or potable water service by a direct connection to a service line that is subject to recoupment or which receives sanitary sewer service or potable water service indirectly by connecting to a service line which directly or indirectly uses a service line that is subject to recoupment shall be assessed the applicable recoupment fee. If the FPA of the city is amended by the IEPA after a recoupment contract is made and entered into pursuant to this code, the city and the sponsor shall enter into an amendment to the recoupment agreement showing the revised boundaries of the city’s FPA as the area expected to be served by the recoupment agreement and the same shall be recorded with the recorder of the counties in which the city’s FPA is then located. In the event of the abolition of the city’s FPA by either the IEPA or the USEPA, then and in that event, the last existing FPA of the city shall be deemed to be the area reasonably expected to be served by sanitary sewer and water distribution facilities constructed pursuant to recoupment agreements made and entered into by the city, unless the city in negotiating the recoupment agreement finds and agrees otherwise.

Upon verifying the total costs of constructing and installing a public sanitary sewer line and/or public water distribution line which will provide sanitary sewer service and/or potable water service to individual lots, tracts or parcels of land or real estate developments located off of the real estate premises of the sponsor’s development in the city’s FPA, which sanitary sewer or water distribution improvement is required by the city in order for the sponsor to obtain approval of a subdivision plat or issuance of a building permit for the sponsor’s development, and for which capital improvement the sponsor is seeking a recoupment agreement, the city council shall determine the pro-rata share of that costs that is attributable to the benefit of the sponsor’s development and the pro-rata share of that costs that is available to benefit other property owners in the city’s FPA who would seek to directly or indirectly connect to the capital improvement in order to develop their property. In order to arrive at the amount of such costs that shall be subject to recoupment, the parties to a recoupment agreement shall subtract from the verified total costs incurred the pro-rata costs attributable to the benefit from the system expected to be received by the sponsor’s development (whether the assessment is based upon size of water meter connection, a per lot or parcel or tract assessment, or some other basis). That amount shall be subtracted from the total costs approved by the city that is subject to recoupment to arrive at the amount of the recoupment or total recoupment amount.