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/land developer.
 
City Code 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 and to compensate 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.  Therefore, the City would reimburse the customer/developer 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 change will compensate a customer for only the additional material costs to increase the water or wastewater main sizes to serve areas beyond the customer's/developer's property (a general benefit facility).   The City’s Rules and Regulations Governing Water and Wastewater Service would be modified concurrently with these BMCC modifications.  In short, the customer would pay the base cost and the City would pay the oversize costs for the mains and appurtenances. If City funds are not available for participation in the extension project, the customer would pay for the construction of all required mains and appurtenances.  The customer could be reimbursed at a later date if 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, and; removal of language referencing the City’s utilities fees practice.
 
The City Council approved the ordinance on 1st reading on February 23, 2015.

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 second and final 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.