Reimbursement Program: Installer (Form 2242)
As property develops within the District, developers (installers) are required to pay for the cost of sewer facilities necessary to serve their development or property. In many cases, this results in new sewers that can also serve properties that did not contribute to the cost of the new sewer facilities. The District has developed a reimbursements program to permit the INSTALLERS to recoup a portion of the cost of the sewer facilities when other noncontributors connect to the system.
Generally, the reimbursement fee that applies to any given sewer facility is determined by taking into consideration the actual cost of construction, engineering costs, zoning regulations, the potential service area, and the number of potential connections to the sewer facility. The reimbursement fee is calculated by dividing the number of connections (units of use) into the total allowable project costs.
In some cases reimbursement fees cannot be equitably determined by using the unit of use (number of connections) concept. In instances where property usages are not uniform (residential, commercial, industrial), reimbursement fees may be established using other methods that will result in an equitable sharing of the cost of the sewer facility.
Facilities Eligible for Reimbursement Fees
Types of Reimbursement Facilities
Reimbursement fees may be established for "standard facilities" and/or "special facilities." Standard facilities are defined as public mains, local street and collector sewers are installed using conventional construction techniques, and ordinary appurtenances to such public sewers, such as manholes and rodding inlets.
"Special Facilities" are defined as public trunk sewers, interceptor sewers, pumping stations, or public mains, local street and collector sewers that require special, unconventional installation techniques, such as tunnels, microtunnels, creek or channel crossings requiring bridges, trestles, culverts, and/or channel modifications, greater than 20-foot trench depth requiring use of trenchless technologies and/or unusually costly shoring or traffic control measures, or other nonstandard appurtenances of unusually high cost.
Eligibility to Establish Reimbursement Fees
The installer of a public sewage facility that is a standard facility may apply to establish a reimbursement fee and account for the facility by making the post-construction submittals as specified below. To be eligible to establish a reimbursement fee and account for a special facility, the prospective installer shall obtain the approval of the District prior to the issuance of a District permit for the construction of the facility. The installer may apply to establish a reimbursement fee and account for the facility by making the preconstruction submittals as specified below. To remain eligible to receive reimbursements after the District's acceptance of the special facility, the installer must also complete the post-construction submittals as specified below.
The District will determine whether establishing a reimbursement fee and account is justified by evaluating submittals from the installer. If the District determines that properties other than those owned or to be developed by the installer could reasonably be physically connected directly to the facility in the case of standard facilities, or could reasonably be served by the facility in the case of special facilities, the installer will be eligible to establish a reimbursement account.
In addition, the installer of a special facility will be eligible to establish a reimbursement account prior to construction on the special facility, when properties which could reasonably be served by the special facility in the future receive interim service through the use of temporary facilities.
No later than six months after the District's acceptance of a standard facility, the installer shall submit all of the following to the District:
Special Facilities: Preconstruction Submittals
To provide for evaluation and approval of reimbursements for a special facility prior to the issuance of a District permit for the construction of the facility, the prospective installer shall submit all of the following to the district at least 30 days prior to the time of his/her application for the permit:
Special Facilities: Post-construction Submittals
In addition to the preconstruction submittals as specified above, the installer shall submit all of the following to the District no later than six months after the District's acceptance of the special facility:
Maximum Recovery of Project Costs
The maximum recovery of costs for installation of a standard or special facility is the amount that the installer of a sewer facility is entitled to recover from the future connectors. It includes all allowable costs of the project less the share of the installer's use of the sewer facility and less the sum of all applicable reimbursement program administration charges and less the sum of any reimbursement fees waived by the installer.
The District reviews the installer's maximum recovery and reimbursement fee from time to time to adjust for the increase or decrease in the value of facilities over time. A review will be undertaken on an account within the year prior to collection of any reimbursement fees payable to that account. The Engineering News Record (ENR) Construction Cost Index for the San Francisco Bay Area is the basis for any adjustment.
There shall also be an annual adjustment for depreciation based on the useful life of the standard or special facility. The useful life of the standard or special facilities is 75 years for sewers and 40 years for pumping stations.
Reimbursement Fees and Accounts
Reimbursement fees collected by the District are placed in a special segregated account for each facility project. Between January 1 and April 1 of each year, the District reviews each account to determine which accounts have fund balances.
The District will notify each installer by U.S. mail to the last known address of the installer of any accumulated funds collected from connectors. Upon written request by the installer, the District will disburse accumulated funds. It is the installer's responsibility to keep the District informed of his or her current address. Failure to do so may result in the ultimate forfeiture of all accumulated funds.
If a request for disbursement of funds is not received from the installer within three years after the initial District notification and after two additional yearly notifications have been sent, the funds will become the property of the District in accordance with general law, if not claimed, or if no verified complaint is filed and served. The District will close the reimbursement funds in the District's sewer Construction fund. The District's formal notice and deposit dissolves any and all claims the installer may have had to the reimbursement funds, and the District's collection of reimbursement fees for the standard or special facility will cease.
Expiration of Reimbursement FeesEach reimbursement fee adopted by the Board of Directors will automatically expire on the twentieth anniversary of the date of the district's acceptance of the standard or special facility for which the reimbursement fee was established. The District's collection of such reimbursement fees will cease on such expiration date. Any funds remaining in the account as of the expiration date will be disbursed, and the reimbursement fee account will the be closed.