Residential Water Main Fee Policy 

Effective April 15, 2005

Below is a revised residential water main fee policy which was adopted by the Board of Directors on January 24, 2005. This policy supersedes any previous policies and will become effective on April 15, 2005.

The residential water main fee policy will apply to developers, builders, contractors, subcontractors or new customers requesting a new service connection to the Board’s water system. If you should have any questions concerning this revised policy, please contact our Engineering Department at 228-1085, 228-1091 or 228-1092.

Sincerely,

William H Wingate, Jr.

Residential Water Main Fee Policy

I. Purpose

The water system is receiving numerous requests to expand its services and add new customers to the system. Expansion of the water system has resulted in increased costs, including but not limited to, providing booster pumps, replacing lines, installing larger lines, constructing water tanks, and maintaining and operating the filter plant. In order to facilitate said expansion and to maintain the existing water distribution system, it is necessary to implement a new water customer main fee policy.

II. Definitions

1. Additional or Expanded Service Owner. The individual or entity that owns a lot on an existing water main which is adding an additional service or expanding a previously existing service.

2. Builder. An individual or entity licensed in the State of Alabama to construct houses that has purchased a subdivision lot or, has entered into a contract with an owner of a subdivision lot to construct a house at the time application is made to set a meter for residential service for said subdivision lot.

3. Customer. An individual or entity, including but not limited to a developer, builder, new service owner, resubdivided lot owner, an additional or expanded service owner which is making a connection to the water system or expanding previous service from the water system.

4. Developer. The individual or entity that submits the subdivision map or plat indicating the layout and/or location of streets, lots, setbacks, curbs, gutters, utilities easements, drainage easements, and topographical contours to Trussville Utilities for approval in order to install water mains and lines in said subdivision.

5. Main Fee. The charge imposed for the addition of a new residential customer to the water system.

6. New Service Owner. The individual or entity that requests service from an existing main at a new location (that does not replace a previous customer).

7. Resubdivided Lot Owner. The individual or entity that owns a lot that has been resubdivided after Trussville Utilities has approved the original subdivision plat for the installation of water mains and lines.

8. Subdivision Utility Layout. The requirements set forth in “General Water & Gas Policy (Installation) Requirements for Developers,” a copy of which is available at Trussville Utilities.

III. Policy

1. Effective Date. This policy shall become effective April 15, 2005.

2. New Customer. A water service main fee shall be charged to any customer that connects to the water system. The fee shall not apply to any customer that replaces a previous customer at the same location without the addition or expansion of service.

3. Payment of Main Fee. The charge for connection of a new customer to the water system. The Main Fee shall be collected for each lot which is added to the system. The Main Fee shall be at least $1200.00 per lot, which shall be paid as follows:

a. New Subdivision.

(1) The Developer will pay the amount of $600.00 per lot at the time of submission of the subdivision utility layout to Trussville Utilities.

(2) The Builder will pay the amount of $600.00 per lot at the time an application is made to set a meter.

b. New Service Owner. The New Service Owner will pay the amount of $1,200.00 when an application is made for the installation of a meter. Said $1,200.00 shall include the cost of the Connection (Tap) fee charged by Trussville Utilities.

c. Additional or Expanded Service Owner. The amount of $1,200.00 shall be paid for (i) each additional service, and (ii) the expansion of previously existing service for each lot. Said $1,200.00 shall include the cost of the Connection (Tap) fee charged by Trussville Utilities. Said fee shall be paid when application is made for additional or expanded service.

d. Resubdivided Lot Owner. The Resubdivided Lot Owner shall pay at least the amount of $1,200.00 per new lot at the time application is made for a new meter. Said $1,200.00 shall include the cost of the Connection (Tap) fee charged by Trussville Utilities.

e. Additional Charges. Exceptions can be made to the cost of the Main Fee as determined by the General Manager or Chief Engineer for Trussville Utilities.

4. Extension Costs. In addition to the Main Fee the Customer will continue to be responsible for all costs, labor and material for the installation of all water system extensions within or to any new development, phase or sector as set forth in the requirements for the subdivision utility layout.

5. Determination of New Areas to Receive Water Service. Trussville Utilities, in its sole discretion, shall determine which new areas will receive water service. Said determination shall be based on Trussville Utilities’ judgment of the availability of water, taking into consideration, among other factors, the ability of the system to provide adequate water and fire protection service to existing customers, the cost and expense to maintain, upgrade and/or expand the water system.

6. Cost of upgrade and expansion. In the event Trussville Utilities approves a properly submitted subdivision utility layout, the approval may be subject to the upgrade and/or modification of the existing water system. In the event Trussville Utilities determines, in its sole judgment, that the costs associated with the upgrade and modification of the water system for the new service or development shall be recouped by Trussville Utilities within ten (10) years, based upon Trussville Utilities’ estimate of annual revenue to be produced by the new development, then Trussville Utilities will be responsible for the cost of upgrades and/or modifications. The Customer shall pay for the upgrade and/or modification costs in excess of the ten (10) year estimated revenue of the development prior to the approval of said subdivision utility layout.

7. Payment. All payments are to be made payable to Trussville Utilities at its main office located at 127 Main Street, Trussville, Alabama 35173.

8. Exemptions.

(a) New Subdivisions. The Developer portion of the Main Fees set forth in Section 3(a) above shall not apply to subdivision utility layout plans which were properly submitted to Trussville Utilities Engineering Department prior to April 15, 2005. In order for said exemption to apply, the Developer must meet all of the requirements of the subdivision utility layout, including, but not limited to installation, inspection and acceptance of said subdivision within twelve (12) months after release of the plan from the Engineering Department.

(b) Customers Other than Developers. The builder portion of the new subdivision main fee, set forth in Section 3(a) above, shall not be exempted.

9. Non-Exempt Submittals. The Main Fee shall apply to all other Customers. The following are not considered as property submitted subdivision layouts:

(a) Requests for water availability letter.

(b) Submittals of overall plans or preliminary plans for development.

10. Application and Revision of Policy. The provisions contained in this policy constitute guidelines only and are subject to modification, supplementation, suspension or elimination at the discretion of Trussville Utilities. They are not to be considered as contractual in nature with any Customer or any other individual or entity.

ADOPTED and APPROVED by

Utilities Board of the City of Trussville