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HomeMy Public PortalAboutSewer Water Application Policy COUNCIL Page 1 of 3 POLICY Effective Date July 8, 2013 Section: Public Works Title: Sewer and Water Application Policy 1.0 POLICY STATEMENT The Town of Oliver receives various applications for new sewer and water services, many of which require considerable time and effort by staff and/or engineering consultants to assess. Often these applications are abandoned by the applicant after considerable costs have been incurred by the Town. In addition, extension of water or sewer services to new areas can create unintended development pressures at times contrary to sound planning principles. It is the policy of the Town that future applications for sewer and water processing be assessed on a cost-recovery basis and that consideration of such applications include not only capacity issues and infrastructure costs, but also other planning concerns. 2.0 PURPOSE The purpose of this policy is to guide staff in processing applications for new sewer collection and water supply services. 3.0 GUIDING PRINCIPLES 3.1 The cost of processing and evaluating applications should be recovered to the greatest extent possible from service applicants. 3.2 Service application fees are to be set which offset an initial staff assessment of service availability and preparation of cost estimates for detailed review and design work related to the application. (Note: In the previous review of the draft water bylaw, the application fee was proposed at only $50. Council may wish to increase these fees or reword this section of the draft policy.) 3.3 Applicants will be required to pay a deposit to cover the cost of any staff time or engineering fees anticipated in completing a final response to any sewer or water application. 3.4 Once service feasibility is confirmed, the applicant will have to pay for all service extension costs before work begins. Sewer and Water Application Policy Page 2 of 3 3.5 The Town may participate in the cost of a service extension evaluation or construction if such a service extension is anticipated to be of general benefit to the Town as well as the applicant. 3.6 Service applications will include consideration of whether the proposed service extension may create any unintended planning consequences. 3.7 In support principle 3.6, no sewer service shall be considered for development outside the municipal boundaries, except for those areas identified by council as suitable for development, and then, only if such areas first become incorporated into the Town, or unless the proposed service is to buildings used for public worship, which are exempt from paying development cost charges and assessed value based property taxes (This is taken from existing council policy and council may wish to review the exemption for public worship spaces.) 4.0 PROCEDURES 4.1 Establish Application Fees Water and sewer bylaws shall establish and maintain non-refundable application fees for new service applications. Once an application fee is established, no staff work on new applications, other than an initial information meeting, will be undertaken until the application fee is received. 4.2 Service from Existing Mains Where water or sewer services can be provided directly from an existing water or sewer main known to have sufficient capacity, staff will provide the applicant with a summary and cost estimate of the cost to install the requested service connection. This information will be provided to the applicant without further charges other than the initial application fee. 4.3 Evaluation and Design of Infrastructure Extensions or Expansions If a service application requires extension of existing municipal infrastructure, or if staff is not confident in the capacity of the municipal infrastructure to service the application, staff will provide the applicant an estimate of the cost of staff time or consultant fees required to complete an assessment of capacity upgrade and/or service extension requirements and costs. The applicant will be required to provide the Town with a cash deposit equal to 125% of these estimated design and evaluation costs before design or evaluation work begins. For complex applications, evaluation and design may need to be undertaken in stages. In these cases a 125% deposit shall be collected from the applicant prior to each stage being undertaken. Once evaluation and design work is completed any difference between the cost and the deposit will be invoiced or refunded to the applicant as the case may be. 4.4 Cost Sharing Where staff believes that a proposed system expansion or extension will provide general benefit to the water or sewer system, staff may negotiate a draft cost sharing proposal with the applicant, subject to approval by council. Sewer and Water Application Policy Page 3 of 3 4.5 Service Construction Deposit If a service application is ultimately approved by the Town, a cash deposit equal to 125% of the applicant’s estimated share of servicing costs will be collected before the Town commences any physical work related to the proposed service. After service work is completed, any difference between the cost and the deposit will be invoiced or refunded to the applicant as the case may be. 4.6 Construction by Applicant or Applicant’s Contractor Any service work to be completed by the applicant or the applicant’s contractor shall be governed by provisions of the Town’s Subdivision and Development Servicing Bylaw, or any other applicable bylaw in force at the time. 5.0 COUNCIL APPROVAL REQUIREMENTS Staff will seek council approval for the following matters related to water or sewer service applications: 5.1 Any proposed cost sharing of service application evaluation or design. 5.2 Any proposed cost sharing of infrastructure expansion or extension. 5.3 Any proposed service extensions which “leapfrog” past non-serviced land to service other lands beyond. 5.4 Any proposed new service or service expansion which may commit a significant amount of service capacity such as irrigation service applications over one acre in size, multi-family residential applications and commercial/industrial applications.