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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.
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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.
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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.