City Code (BMCC), Article 26-500 defines a water and wastewater “General Benefit Facility” as infrastructure that benefits a large number of water and/or wastewater customers.  The BMCC also defines a water and wastewater “Special Benefit Facility” as infrastructure that provides service solely to a specific property.  A facility includes water and/or wastewater mains and appurtenances.  In essence, a general benefit facility provides a water and/or wastewater benefit beyond the property boundaries of a customer.  A special benefit facility typically only provides water and/or wastewater benefits to the property of a single customer.

Currently the BMCC states that if a customer constructs a water and/or wastewater main (a general benefit facility) the City will compensate the customer for the additional costs to increase the size of the water and/or sewer mains to serve areas beyond the customer’s property in addition to compensating the customer for the cost to construct the mains and appurtenances for the size that would be required to serve only that customer’s property.  So today the City would compensate the person constructing the mains for the entire cost of the mains and appurtenances.  This requires an approved compensation agreement. 

The proposed BMCC amendments would remove this language.  The proposed language directs the customer to the most recent edition of the City’s Rules and Regulations Governing Water and Wastewater Service.  The Rules and Regulations document is being modified concurrently with these BMCC modifications.   The result will be that if a customer constructs a water and/or wastewater main (a general benefit facility) the City will compensate the customer for only those additional material costs to increase the size of the water and/or sewer mains to serve areas beyond the customer’s property.  The customer would then be required to pay the cost to install the water and sewer mains up to the size required if only the customer’s property were being served.  So in short, the customer would pay the base cost and the City would pay the oversize costs for the mains and appurtenances.

If sufficient funds are not available for participation in the extension project by the City then the customer shall pay for the construction of all mains and appurtenances required.  These costs could be reimbursed to the customer at a later date as funding becomes available.

Other proposed modifications include:

• Clarification of the definitions for general benefit and specific benefit facilities.
• Removal of references in two locations to storm water.
• Removal of language referencing the City’s utilities fees practice.

City Council may approve or not approve the ordinance amending BMCC Article 26-500, Reimbursement and Compensation of Water and Wastewater Extension and Replacement on first reading.

• Approving the ordinance will modify and update Article 26-500 of the BMCC; or,

• Not approving the ordinance will continue the practice of the City paying for all of the costs for general benefit water and wastewater facilities when an approved compensation agreement is in place.

If the modifications to the BMCC are approved, in cases where the City determines a general benefit facility should be constructed the developer or property owner will pay the cost of the mains and infrastructure for the size needed to serve their property.  The City will compensate the customer for material costs for any increase in size for the mains and appurtenances if funding is available and a compensation agreement is approved by City Council.