§ 19-209. Utility line extension: Payback of costs for oversize or extended utility main construction.

(a)

All eligible costs for oversize or extension of utility lines shall be recoverable by the owner, the City, or both as appropriate. Eligible recoverable utility line extension or oversize development costs include the total improvement costs of the utility line, including all right-of-way/easement costs (both temporary and permanent) and costs for engineering, surveying, utility adjustments or relocation, excavation, backfill, subgrade preparation, pavement repair, utility line construction and other amenities, as might be required, plus two (2) percent of the total of all above costs as an administrative fee to the City. Any of the above items paid for by general obligation bonds or funds from any other governmental entity which are not subject to repayment by the City of Norman shall be deducted in determining the total improvement costs, except for right-of-way costs provided for in subsection (b) below.

(b)

The City of Norman and/or the owner(s) who funded the eligible recoverable utility line oversize or extension costs shall be reimbursed for the total improvement costs of the utility line by the abutting or serviced property owners who are responsible for utility line construction. The original funding entity(ies) shall recoup the appropriate pro-rata share for such construction. Additionally, the costs for all right-of-way acquisition shall be charged back specifically to that property assignable to such costs.

(c)

All properties physically contiguous to the right-of-way line of an arterial street containing a twelve-inch water line constructed after the effective date of this section shall be subject to the payback program charges. All properties which are either contiguous to a sanitary sewer line, taking service directly from that sanitary sewer line, or served indirectly through increased sewer capacity created as a result of the sanitary sewer line built after the effective date of this section, March 13, 1997, shall be subject to the payback program charges. The only exceptions shall be those properties which have previously constructed utility mains adjacent to and servicing such properties according to City of Norman requirements or those which have made payments for deferred construction prior to the City entering an agreement or commencing design of a designated utility line.

(d)

Each tract of property identified in subsection (c) above shall be subject to the total water line oversize or extension cost participation expense equal to such tract's pro-rata share, any applicable right-of-way costs, and inflation/deflation adjustment. Calculation of the costs for each individual tract shall be determined as follows:

(1)

Pro-rata share = a - b / 2 x c × d

Where a = Total improvement costs

b = Right-of-way costs

c = Total footage of the project

And d = Front footage of liable property

(2)

Right-of-way cost = Actual price paid for acquisition of right-of-way/utility easement from subject tract.

(3)

[Inflation/deflation adjustment =] Adjustment of subsections (1) and (2) using an inflation factor calculated using the Engineering News Record Construction Cost Index. The inflation factor shall be a percentage increase applied to (1) and (2) that adjusts the amount due for these costs. The initial inflation factor will be calculated by dividing the January 2000 value by the January 1990 value. To account for the actual time between adoption of the resolution and repayment of the obligation, the resulting increase will be divided by ten (10) and multiplied by the decimal equivalent of the period covered measured in years. The inflation factor will be recalculated every five (5) years with the first recalculation occurring in January 2005. The value of the inflation factor in place at the time the Council adopts the map and list for a project will be applied to that project until all funds are paid back or the obligation expires.

The total payments calculated in subsections (1), (2), and (3) above shall become a liability against property subsequent to the contracting for water line oversize or extension. For all single-family residential developments, all payback fees shall be paid in full before the filing of a plat. For all other developments, all payback charges shall be paid in full before the issuance of a building permit.

(e)

Each tract of property identified in subsection (c) above shall be subject to the total sewer line oversize or extension cost participation expense equal to such tract's pro-rata share, any applicable right-of-way costs, and inflation/deflation adjustment. Calculation of the costs for each individual tract shall be determined as follows:

(1)

Pro-rata share = a x q / Q

Where a = Total improvement costs

q = Design flow for property sewer

And Q = Design flow for project sewer

(2)

Right-of-way cost = Actual price paid for acquisition of right-of-way/utility easement from subject tract.

(3)

[Inflation/deflation adjustment =] Adjustment of subsections (1) and (2) using an inflation factor calculated using the Engineering News Record Construction Cost Index. The inflation factor shall be a percentage increase applied to (1) and (2) that adjusts the amount due for these costs. The initial inflation factor will be calculated by dividing the January 2000 value by the January 1990 value. To account for the actual time between adoption of the resolution and repayment of the obligation, the resulting increase will be divided by ten (10) and multiplied by the decimal equivalent of the period covered measured in years. The inflation factor will be recalculated every five (5) years with the first recalculation occurring in January 2005. The value of the inflation factor in place at the time the Council adopts the map and list for a project will be applied to that project until all funds are paid back or the obligation expires.

The total payments calculated in subsections (1), (2), and (3) shall become a liability against the property subsequent to the contracting for sewer line oversize or extension. All such obligations shall be paid in full before the filing of a plat. Provided that the pro rata share shall not be more than the cost to construct a sanitary sewer line of adequate size from the point where service is available to the property. For purposes of calculating the cost of such sanitary sewer line, unit prices from the most recent City project using that line size will be multiplied by the length of a reasonable route between the property and the point where service is available.

(f)

Within sixty (60) days following acceptance by the City of the completed improvements of the subject utility line, the City Engineer, or his designated agent, shall prepare a tract map and list of the individually affected tracts and the estimated pro-rata share attributable to each such tract, hereinafter referred to as the "map and list." The map and list will also include all costs, if any, for right-of-way acquisition to each tract. The map and list shall be made available to the owners of all fee interests in the affected properties. Notice of the map and list shall be filed of [on] record in the office of the City Clerk and the Cleveland County Clerk. Upon written request to the City Engineer, notice shall be given within a reasonable time to the requesting party of the most current estimate of the dollar value of the participation cost of any identified tract of property. Except with reference to the filing of notice of the map and list with the office of the City Clerk, nothing shall be deemed a defect preventing the City from collecting the applicable recoupment cost under sections 19-211—19-213.

(g)

Any owner of a tract of property may, at any time after preparation of the map and list, cause the tract's total obligation to be paid to the City. Unless previously paid, the proportion of the right-of-way cost and pro-rata share attributable to that portion of a tract being developed, as adjusted by the Engineering News Record Construction Cost Index, is due as follows. For any portion of the subject tract that is proposed to develop as single-family residential, the payback charges are due prior to approval of the final plat. For any portion of the subject tract that is proposed to develop as any land use other than single-family, the payback charges are due prior to issuance of a building permit. No single-family plat shall be released for filing until the then due total costs are actually paid.

(h)

Each identified tract of property shall be subject to participation in the payback program commencing with the date that the utility line oversize/extension contract is approved by the City of Norman. As the total project cost cannot be determined and notice of the assessment of same cannot be delivered until completion of the project, the Director of Public Works of the City is hereby authorized to develop procedures for the review and approval, irrespective of the other provisions of sections 19-211—19-213, of platting procedures after authorization of the utility extension but prior to the time that the property's total share of the participation cost is determined and can be paid. Such procedures are directed to include, to the extent feasible, the assurance to property owners and developers that plat approval may proceed so as not to retard the progress of private development plans, while, at the same time, to provide financial security to the City that the property's recoupment share will be paid upon final ascertainment of the amount owed.

(i)

Unless earlier paid, each defined tract's share of the participation cost shall continue as an obligation of the property for its determined share of the total utility line oversize or extension costs, plus the appropriate inflation/deflation as outlined in subsection (d)(3) or (e)(3) above, for an through a period of fifteen (15) years from the date of issuance of the map and list required by subsection (f) or (g) above. Beginning at year sixteen (16) and continuing through year twenty (20), the pro-rata share shall decrease at a rate of twenty (20) percent of the pro-rata amount existing at the end of the fifteenth year until the pro-rata share obligation is reduced to zero dollars ($0.00) and thus terminates at the end of the twentieth year from the date of issuance of the map and list.

(Ord. No. O-9697-30; Ord. No. 0-9899-6; Ord. No. 0-0001-15; Ord. No. 0-0102-23)