Polk County Water, Sewage and Solid Waste Authority (PCWA) Line Extension Policy Dated: June 20, 2011 Approved by the Board: June 20, 2011 Amended: June 17, 2013 Overview The line extension policy affects customers wishing to extend current County water lines for residential services. It does not include line extensions for business or commercial users. All line extensions must be installed in accordance with current Federal, State, and County laws and policies, as well as other organizations such as railroad or road departments. The PCWA is committed to controlling cost while continuing to provide the best available product and services to our customers. To do this, it is necessary, from time to time, to modify past programs when costs and resources change. The PCWA line extension policy reflects the best utilization of funds and manpower to provide water to residents without County water service, and may change without notice, given the needs of the business. Discussion Charges for line extensions will be determined based on labor, material, and associated costs. Other charges may apply, such as road and driveway bores, railroad bores, casing, rock excavation and/or drilling, or other unidentified or special charges that may be required to complete the installation. A site visit to the requested installation area is necessary before any final pricing is approved or quoted. The costs, after inspection, are only an estimate. There may be other charges due to circumstances not detected by visual inspection of the project site. Typically, line extensions include pipe costs, a three-quarter inch (¾”) residential meter and installation, line tap, and associated labor. Due to frequent changes that are beyond the control of the PCWA, requests for line extensions will be priced based on current labor, material charges and any extraordinary charges that may be incurred due to the installation of the line and meter. Quotes are provided for a period of thirty days, and then may require a requote at the discretion of PCWA management. Further, timing for line extensions may vary from job to job, depending on PCWA work load, weather, and material and equipment availability. A written quote will be provided and signed by the PCWA General Manager and, if agreed and accepted, the party contracting for the extension. Terms require payment in full prior to job start. Payment will be based on the estimated quote and any final payment for extraordinary charges will be paid in full upon completion of the project. This line extension policy shall become effective upon approval by the PCWA Board of Directors and shall remain in full force and effect until revoked or amended by the Board of Directors. Changes may occur without notice. The following fund is approved effective June 17, 2013, as a part of the Polk County Water Authority Line Extension Policy. This fund will be reviewed and identified in Page 2 the annual budget as “Line Extension Fund” and may be changed or discontinued by the Authority Board of Directors based on the financial and business needs of PCWA. The amount of the fund shall be set by the BOD annually, and may be revised as necessary. Line extensions are part of the County system, owned and maintained by the Polk County Water Authority, for the use of our customers. When a new line extension is approved and installed, it becomes subject to the control, repair, and maintenance of the Authority. Taps to Existing Water Main Lines Customers wishing to tap into a line extension that has been installed and paid for by another customer may do so in accordance with the following guidelines. During the two years following a line extension installation, a new customer may be added to the extended portion of the line. However, during this two year period, the new customer will be required to pay an additional $ 175.00 “added customer fee” to the original line extension customer, as well as other line connection fees and deposits required as with any new customer account. No special provisions are available to the “added customer”. The Added Customer Fee will be paid to the PCWA and used as a credit on the originating customer’s account. In any case, the amount collected from “added customer fees”, and credited to the originating customer, shall not exceed seventy-five percent (75%) of the original installation amount paid. After the initial two year period, no special provisions will apply. Line Extension 1. The Board will establish and set aside a non-restricted fund each budget year for residential line extensions. This money will be used in response to line extension requests from residential customers to subsidize the cost of a line extension to their property. Unused funds at year end will be returned to General Funds. This fund and the supporting policy may be stopped, reduced, changed, or otherwise modified based on the financial and operating requirements of the Authority. 2. Each application for a line extension will be reviewed by the General Manager to determine the cost and viability of the extension. Once this is determined, and if approved by the General Manager, the PCWA will allocate funds toward the extension cost. 3. PCWA will pay a flat rate of forty percent (40%) of the cost of the line extension, not to exceed $ 4,000 per installation, with the balance due from the customer before installation begins. 4. The customer will be responsible for any and all charges exceeding the PCWA contribution. 5. Customer charges must be paid in advance of work beginning. Fees may be paid by builders/contractors on behalf of the account holder, but the account must be in the property owner’s name. 6. Work must be done by the PCWA Contractor in coordination with other PCWA contract work. 7. When the annual budgeted amount for PCWA Line Extension Fund is depleted, then applicants wishing to use the fund will be required to wait until the following year’s Page 3 budget is funded. All applications will be date-time stamped and prioritized on a “first come/first served” basis. 8. Exceptions may be granted to this policy based on special circumstances as determined by the Authority’s Finance Committee. This may include additional budget allocations when the annual line extension fund amount is depleted. 9. Annual funding is set at $ 50,000 for budget purposes. First year (CY 2013) funding will be pro-rated.