§ 28-50. Improvements and extensions by persons other than city.

Upon the application of any person for the extension of water mains or other improvements, when the water department has insufficient funds at its disposal to make such improvements, or whenever such extensions or improvements would not be profitable in the judgment of the city council, the council may refuse to make such improvements or extensions, or it may authorize and empower the mayor and city clerk, in the name of and in behalf of the city, to enter into a written contract with the interested persons in the following manner:

(1)

Upon application to the city for water service, the applicant, whether one (1) or more individual persons or an association of persons or a corporation, shall deposit with the city an amount equal to the total cost of extending the existing water main to the midpoint of the lot to be served, or to the midpoint of the lot to be served that is the greatest distance from the terminal of the existing main if such extension is to serve more than one (1) property, as such cost is estimated by the superintendent or other authorized representative of the city. Construction, laying or installation of the extension may not be begun until such deposit has been paid to and received by the city.

(2)

Should the actual cost of extending the water main be greater than the cost as estimated, the applicant shall pay such additional sum to the city before service of water is begun. Should the actual cost of extending the water main be less than the cost as estimated, the applicant shall be refunded the amount of his payment above the actual cost.

(3)

All sums of money collected by the city as provided above shall be credited to the water fund of the city and all refunds provided for hereinafter shall be paid from the water fund money credited to the water fund as provided herein, at the direction of the city council, to be used to pay for the construction, laying or installation of the requested water main extension.

(4)

Immediately after a residence or commercial establishment has commenced purchasing and receiving water through the water main extension as provided in this chapter, the applicant shall be entitled to a refund for each additional user who connects to the main extension at a point between the terminal point of the existing main and the point at which the original user has tapped onto the main extension, an amount equal to that proportion of the total cost of the main extension. In no instance shall the city refund an amount greater than the original deposit made by the applicant. No interest shall be paid on funds so deposited.

(Ord. No. 604, § 32, 2-23-61; Ord. No. 799, § 32, 3-12-73)