§ 12-25. Developer reimbursement.

(a)

When a developer proposes to construct an extension or improvement of a PCU utility system, PCU may reimburse the developer for the eligible costs of the utility system extension or improvement project on the basis of reasonable and customary costs of materials and labor, and as further described below.

(1)

PCU will reimburse the developer, in accordance with a BOCC approved development, utilities, or interlocal agreement, for eligible actual costs, including applicable state sales taxes, to construct PCU CIP utility system extension and improvement projects when the construction timeline for an affected proposed development's utility system extension and improvement projects parallel the current PCU 5-Year CIP funding timeline. PCU will reimburse the developer for the eligible actual installation and material costs for such utility system extension and improvement projects. As the proposed development's construction timeline will parallel the PCU CIP funding timeline, it is anticipated that PCU will have approved final construction plans and all applicable permits available for the use of the developer to construct the PCU utility system extension and improvement projects.

(2)

PCU will reimburse the developer, in accordance with a BOCC approved development, utilities, or interlocal agreement, for the eligible costs, including applicable state sales taxes, of utility system extension and improvement projects which a) are above the design needs of the proposed development, b) do not have a construction timeline that parallels the current PCU 5-Year CIP funding timeline, c) are determined by PCU to be in its best interest to oversize or otherwise participate in the utility system extension or improvement project, and d) found financially feasible by PCU for reimbursement. PCU will reimburse the developer for the increased eligible material costs only of such over-sizing up to two (2) pipe sizes for distribution, collection, and transmission mains. PCU will reimburse the developer for the increased eligible design, installation, and material costs of such over-sizing over two (2) pipe sizes and related improvements for distribution, collection, and transmission mains. PCU will reimburse the developer for all increased eligible over-sizing costs related to the design, permitting, and construction of non-main improvements.

(3)

For utility system extension and improvement projects required by a proposed development to meet its design needs which are not included in the affected subject RUSA's current 5-Year CIP program, the costs of all such utility system extension or improvement projects shall be paid for in their entirety by the Developer.

(b)

Design, installation, and material costs for system extension and improvement projects that are eligible for reimbursement may include the costs of surveying, designing, engineering, permitting, constructing, inspection, and testing the utility systems, plus the preparation of record drawings. Costs that are not eligible for reimbursement include legal costs, real estate and easement acquisition costs, interest costs, and administration costs and corporate management.

(c)

Reimbursement payments shall be no more frequent than quarterly, and the payment period shall not extend beyond ten (10) years from the date of the agreement between the developer and the BOCC.

(d)

Prior to the BOCC's formal acceptance of the utility system improvement or reimbursement to the developer, the developer shall pay all applicable charges.

(e)

Reimbursement will occur only after the BOCC's formal acceptance of the subject utility system improvements.

(f)

Reimbursement to a developer or other property owner shall not be based on future connections by a third party to a system extension.

(g)

Nothing contained herein shall be construed as restricting or preventing PCU's ability to enter into a special arrangement with a user, as determined by PCU to be in its best interest, whereby the specific terms of obtaining service are set forth in a developer agreement.

(Ord. No. 10-081, § 10, 12-1-10)