PRIOR PRINTER'S NO. 486 PRINTER'S NO. 3625
No. 444 Session of 1989
INTRODUCED BY GODSHALL, S. H. SMITH, COY, MRKONIC, TIGUE,
DISTLER, ROBBINS, GLADECK, MERRY, CIVERA, DEMPSEY, PHILLIPS,
NOYE, CARLSON, HERMAN, STABACK, ALLEN, McVERRY, HESS, FARGO,
GEIST, DeLUCA, NAHILL, JOHNSON, GIGLIOTTI, HALUSKA, REBER,
YANDRISEVITS, TRELLO, VROON, BUNT, McHALE, OLASZ, TRICH,
RAYMOND, CORNELL, WAMBACH, FLICK, G. SNYDER, HECKLER,
MARSICO, VEON, STISH, LEH, JAMES AND J. H. CLARK,
FEBRUARY 14, 1989
AS REPORTED FROM COMMITTEE ON LOCAL GOVERNMENT, HOUSE OF
REPRESENTATIVES, AS AMENDED, JUNE 4, 1990
AN ACT
1 Amending the act of May 2, 1945 (P.L.382, No.164), entitled "An
2 act providing for the incorporation as bodies corporate and
3 politic of 'Authorities' for municipalities, counties and
4 townships; prescribing the rights, powers and duties of such
5 Authorities heretofore or hereafter incorporated; authorizing
6 such Authorities to acquire, construct, improve, maintain and
7 operate projects, and to borrow money and issue bonds
8 therefor; providing for the payment of such bonds, and
9 prescribing the rights of the holders thereof; conferring the
10 right of eminent domain on such Authorities; authorizing such
11 Authorities to enter into contracts with and to accept grants
12 from the Federal Government or any agency thereof; and
13 conferring exclusive jurisdiction on certain courts over
14 rates," restricting certain persons from bidding on <--
15 contracts. FURTHER PROVIDING FOR POWERS. <--
16 The General Assembly of the Commonwealth of Pennsylvania
17 hereby enacts as follows:
18 Section 1. The act of May 2, 1945 (P.L.382, No.164), known <--
19 as the Municipality Authorities Act of 1945, is amended by
20 adding a section to read:
21 Section 10.1. Restrictions Concerning Contracts.--A. No
1 person who or entity which, as a contractor or subcontractor,
2 supplied goods or services to a government or government
3 instrumentality and has been convicted of, or has pleaded guilty
4 or nolo contendere to, a Federal or state crime involving fraud
5 upon a government or a government instrumentality for acts or
6 omissions arising out of the supplying of goods or services, and
7 no entity in which that person or entity has a substantial
8 interest, may bid on a contract for a period of three years
9 after such conviction or plea. For purposes of this subsection,
10 the following words and phrases shall have the following
11 meanings:
12 (a) "Crime" means any criminal act committed after the
13 effective date of this amendatory act for which the maximum
14 possible penalty exceeds a fine of three hundred dollars ($300)
15 or exceeds imprisonment for ninety days.
16 (b) "Entity" means any association, corporation, limited
17 partnership, partnership, or other business or nonprofit
18 organization.
19 (c) "Fraud" includes, but is not limited to:
20 (1) A misrepresentation of a material fact that is not made
21 honestly and in good faith.
22 (2) A promise, representation or prediction as to the future
23 that is not made honestly and in good faith.
24 (3) An intentional failure to disclose a material fact.
25 (4) A fictitious or pretended purchase or sale of a
26 security.
27 (5) The gaining, through the sale of a security, of an
28 underwriting or promotion fee or profit or a selling or managing
29 fee or profit that is so gross or exorbitant as to be
30 unconscionable. This includes a scheme, device or artifice to
19890H0444B3625 - 2 -
1 obtain such a profit, fee or commission.
2 (6) A scheme, device or artifice to defraud a prospective or
3 actual customer, client or subscriber of securities, money or
4 property.
5 (d) "State" means the District of Columbia and any
6 possession, state, territory or trusteeship of the United
7 States.
8 (e) "Substantial interest" means serving as a director,
9 limited partner, officer, partner or proprietor, or owning more
10 than ten per centum of the number of shares of voting stock or
11 more than twenty per centum of the total number of shares of
12 stock.
13 B. The township may require the following information to be
14 submitted with the bid: a sworn statement by the bidder and, if
15 the affiant is an entity, by every person or entity having a
16 substantial interest therein, listing all Federal and State
17 convictions of, and pleas of guilty or nolo contendere to, any
18 crime within three years prior to the date of the statement,
19 said statement to be dated no more than one week prior to the
20 date set for the opening of bids.
21 Section 2. This act shall take effect in 60 days.
22 SECTION 1. CLAUSE (T) OF SUBSECTION B OF SECTION 4 OF THE <--
23 ACT OF MAY 2, 1945 (P.L.382, NO.164), KNOWN AS THE MUNICIPALITY
24 AUTHORITIES ACT OF 1945, AMENDED MAY 15, 1963 (P.L.33, NO.30),
25 IS AMENDED AND THE SUBSECTION IS AMENDED BY ADDING CLAUSES TO
26 READ:
27 SECTION 4. PURPOSES AND POWERS; GENERAL.--* * *
28 B. EVERY AUTHORITY IS HEREBY GRANTED, AND SHALL HAVE AND MAY
29 EXERCISE ALL POWERS NECESSARY OR CONVENIENT FOR THE CARRYING OUT
30 OF THE AFORESAID PURPOSES, INCLUDING BUT WITHOUT LIMITING THE
19890H0444B3625 - 3 -
1 GENERALITY OF THE FOREGOING, THE FOLLOWING RIGHTS AND POWERS:
2 * * *
3 [(T) TO CHARGE A TAPPING FEE WHENEVER THE OWNER OF ANY
4 PROPERTY CONNECTS SUCH PROPERTY WITH A SEWER SYSTEM OR WATER
5 MAIN CONSTRUCTED BY THE AUTHORITY WHICH FEE SHALL BE IN ADDITION
6 TO ANY CHARGES ASSESSED AND COLLECTED AGAINST SUCH PROPERTY IN
7 THE CONSTRUCTION OF SUCH SEWER OR WATER MAIN BY THE AUTHORITY OR
8 ANY RENTAL CHARGES ASSESSED BY THE AUTHORITY. WHENEVER A SEWER
9 SYSTEM OR WATER MAIN OR ANY PART OR EXTENSION THEREOF OWNED BY
10 AN AUTHORITY HAS BEEN CONSTRUCTED BY THE AUTHORITY AT THE
11 EXPENSE OF A PRIVATE PERSON OR CORPORATION OR HAS BEEN
12 CONSTRUCTED BY A PRIVATE PERSON OR CORPORATION UNDER THE
13 SUPERVISION OF THE AUTHORITY AT THE EXPENSE OF THE PRIVATE
14 PERSON OR CORPORATION, THE AUTHORITY SHALL HAVE THE RIGHT TO
15 CHARGE A TAPPING FEE AND REFUND SAID TAPPING FEE OR ANY PART
16 THEREOF TO THE PERSON OR CORPORATION WHO HAS PAID FOR THE
17 CONSTRUCTION OF SAID SEWER SYSTEM OR WATER MAIN OR ANY PART OR
18 EXTENSION THEREOF. THE TOTAL OF SAID REFUNDS SHALL NEVER EXCEED
19 THE COST OF SAID SYSTEM OR MAIN OR ANY PART OR EXTENSION THEREOF
20 TO THE PERSON OR CORPORATION PAYING FOR CONSTRUCTION THEREOF. IN
21 ANY CASE WHERE THE PROPERTY CONNECTED OR TO BE CONNECTED WITH
22 THE SEWER SYSTEM OF THE AUTHORITY IS NOT EQUIPPED WITH A WATER
23 METER, THE AUTHORITY MAY INSTALL SUCH A METER AT ITS OWN COST
24 AND EXPENSE: PROVIDED, HOWEVER, THAT IF THE PROPERTY IS SUPPLIED
25 WITH WATER FROM THE FACILITIES OF A PUBLIC WATER SUPPLY AGENCY,
26 THE AUTHORITY SHALL NOT INSTALL SUCH METER WITHOUT THE CONSENT
27 AND APPROVAL OF THE PUBLIC WATER SUPPLY AGENCY.]
28 (T) TO CHARGE CERTAIN ENUMERATED FEES TO PROPERTY OWNERS WHO
29 CONNECT TO THE MUNICIPAL AUTHORITY'S SEWER OR WATER SYSTEM,
30 WHICH FEES SHALL BE DETERMINED AT THE TIME OF SUBDIVISION
19890H0444B3625 - 4 -
1 APPROVAL UNDER THE "PENNSYLVANIA MUNICIPALITIES PLANNING CODE,"
2 AND SHALL BE PAYABLE AT THE TIME OF ISSUANCE OF A BUILDING
3 PERMIT, OR, IF NO BUILDING PERMIT IS REQUIRED, IMMEDIATELY
4 PRECEDING CONSTRUCTION, OR AT SUCH EARLIER TIME AS THE PROPERTY
5 OWNER OR OWNERS MAY AGREE. THE FEES SHALL BE IN ADDITION TO ANY
6 CHARGES ASSESSED AGAINST THE PROPERTY IN THE CONSTRUCTION OF A
7 SEWER OR WATER MAIN BY THE MUNICIPAL AUTHORITY IN ACCORDANCE
8 WITH CLAUSES (R) AND (S) AND NOT INCLUDED IN THE CALCULATION OF
9 ANY OTHER FEES SPECIFIED HEREIN AS WELL AS ANY OTHER USER
10 CHARGES IMPOSED BY THE MUNICIPAL AUTHORITY PURSUANT TO CLAUSE
11 (H) AND NOT INCLUDED IN THE CALCULATION OF ANY OTHER FEE
12 SPECIFIED HEREIN.
13 (1) THE FEES MAY INCLUDE SOME OR ALL OF THE FOLLOWING FEE
14 COMPONENTS, WHICH SHALL BE SEPARATELY SET FORTH IN THE
15 APPROPRIATE RESOLUTION OF THE MUNICIPAL AUTHORITY GOVERNING SUCH
16 FEES:
17 (I) CONNECTION FEE. A FEE BASED UPON THE ACTUAL COST OF THE
18 CONNECTION OF THE PROPERTY EXTENDING FROM THE MUNICIPAL
19 AUTHORITY'S MAIN TO THE PROPERTY LINE OR CURB STOP OF THE
20 PROPERTY SO CONNECTED. IN LIEU OF THE PAYMENT OF THE FEE, A
21 MUNICIPAL AUTHORITY MAY REQUIRE THE CONSTRUCTION AND DEDICATION
22 OF THOSE FACILITIES REQUIRED TO CONNECT THE LANDS OF THE
23 PROPERTY OWNER OR OWNERS REQUESTING SUCH CONNECTION.
24 (II) CUSTOMER FACILITIES FEE. A FEE BASED UPON THE ACTUAL
25 DIRECT COST OF FACILITIES SERVING THE CONNECTED PROPERTY FROM
26 THE PROPERTY LINE OR CURB STOP TO THE PROPOSED DWELLING OR
27 BUILDING TO BE SERVED. THE FEE SHALL BE CHARGEABLE ONLY IN THE
28 EVENT THAT THE MUNICIPAL AUTHORITY AND NOT THE PROPERTY OWNER OR
29 OWNERS INSTALLS THE CUSTOMER FACILITIES. IN LIEU OF THE PAYMENT
30 OF ANY FEE, A MUNICIPAL AUTHORITY MAY REQUIRE THE CONSTRUCTION
19890H0444B3625 - 5 -
1 OF THESE FACILITIES REQUIRED TO INSTALL CUSTOMER FACILITIES TO
2 THE LANDS OF THE PROPERTY OWNER OR OWNERS REQUESTING CUSTOMER
3 FACILITIES.
4 (III) TAPPING FEE. A FEE BASED UPON SOME OR ALL OF THE
5 FOLLOWING FEE COMPONENTS WHICH SHALL BE SEPARATELY SET FORTH IN
6 THE APPROPRIATE RESOLUTION OF THE MUNICIPAL AUTHORITY GOVERNING
7 THE FEE:
8 (A) CAPACITY AND DISTRIBUTION-COLLECTION COMPONENT. AN
9 AMOUNT NOT TO EXCEED THE AMOUNT CALCULATED IN THE FOLLOWING
10 MANNER:
11 (I) THE AMOUNT REPRESENTING ALL DEBT SERVICE, INCLUDING, BUT
12 NOT LIMITED TO SINKING FUNDS, RESERVE FUNDS, THE PRINCIPAL AND
13 INTEREST ON BONDS, AND THE AMOUNT OF ANY LOANS OR INTEREST
14 THEREON, PAID BY THE MUNICIPALITY OR MUNICIPAL AUTHORITY TO
15 DEFRAY THE CAPITAL COST OF DEVELOPING ONLY THE CAPITAL
16 FACILITIES OR COMPONENTS WHICH ARE IN USE AS PART OF THE SYSTEM,
17 CALCULATED AS OF THE END OF THE IMMEDIATELY PRECEDING FISCAL
18 YEAR OF THE MUNICIPALITY OR MUNICIPAL AUTHORITY, SHALL BE ADDED
19 TO ALL CAPITAL EXPENDITURES MADE BY THE MUNICIPALITY OR
20 MUNICIPAL AUTHORITY FOR FACILITIES OR COMPONENTS WHICH ARE IN
21 USE AND WERE NOT FUNDED BY A BOND ISSUE OR DEBT FOR THE
22 DEVELOPMENT OF THE SYSTEM AS OF THE END OF THE IMMEDIATELY
23 PRECEDING FISCAL YEAR.
24 (II) ANY CONTRIBUTIONS, GIFTS, PAYMENTS OR SUBSIDIES TO THE
25 MUNICIPALITY OR MUNICIPAL AUTHORITY RECEIVED FROM, AND NOT
26 REIMBURSABLE TO, ANY FEDERAL, STATE, COUNTY OR MUNICIPAL
27 GOVERNMENT OR AGENCY OR ANY PRIVATE PERSON, AND THAT PORTION OF
28 AMOUNTS PAID TO THE MUNICIPALITY OR MUNICIPAL AUTHORITY BY A
29 PUBLIC ENTITY UNDER A SERVICE AGREEMENT OR SERVICE CONTRACT
30 WHICH IS NOT REPAID TO THE PUBLIC ENTITY BY THE MUNICIPALITY OR
19890H0444B3625 - 6 -
1 MUNICIPAL AUTHORITY, SHALL BE SUBTRACTED FROM THE AMOUNT
2 CALCULATED UNDER SUBCLAUSE (I).
3 (III) THE REMAINDER SHALL BE DIVIDED BY THE TOTAL NUMBER OF
4 SERVICE UNITS SERVED BY THE MUNICIPALITY OR MUNICIPAL AUTHORITY
5 AT THE END OF THE IMMEDIATELY PRECEDING FISCAL YEAR AND THE
6 QUOTIENT SHALL BE APPORTIONED FOR EACH NEW CONNECTION, TO
7 PRODUCE THE SYSTEM-BUY-IN CONTRIBUTION TO THE COST OF THE
8 SYSTEM. IN ATTRIBUTING SERVICE UNITS TO EACH NEW CONNECTOR, THE
9 ESTIMATED DAILY FLOW OF SEWAGE OR WATER FOR THE CONNECTOR SHALL
10 BE DIVIDED BY THE AVERAGE DAILY FLOW OF SEWAGE OR WATER TO THE
11 AVERAGE SINGLE-FAMILY RESIDENCE IN THE SERVICE DISTRICT, TO
12 PRODUCE THE NUMBER OF SERVICE UNITS TO BE ATTRIBUTED.
13 (B) SPECIAL PURPOSE COMPONENT. AN AMOUNT BASED UPON THE
14 ALLOCABLE PORTION OF THE ORIGINAL COST OF CONSTRUCTING SPECIAL
15 PURPOSE FACILITIES, INCLUDING, BUT NOT LIMITED TO, BOOSTER PUMP
16 STATIONS, FIRE SERVICE FACILITIES AND INDUSTRIAL WASTEWATER
17 TREATMENT FACILITIES, TO THE EXTENT THAT SUCH FACILITIES PRODUCE
18 A MATERIAL BENEFIT TO THE PROPERTY WHICH IS CONNECTING TO THE
19 SYSTEM.
20 (C) REIMBURSEMENT COMPONENT. AN AMOUNT NECESSARY TO
21 RECAPTURE THE ALLOCABLE PORTION OF OVERSIZED FACILITIES PURSUANT
22 TO CLAUSE (Z).
23 (IV) NO TAPPING FEE MAY BE REQUIRED OR COLLECTED HEREUNDER
24 WHICH WOULD DO ANY OF THE FOLLOWING:
25 (A) CONSTITUTE THE MAINTENANCE, REPAIR OR REPLACEMENT OF
26 EXISTING FACILITIES.
27 (B) EXPAND, REPLACE, UPDATE OR UPGRADE EXISTING FACILITIES
28 OR IMPROVEMENTS TO SERVE EXISTING DEVELOPMENT IN ORDER TO MEET
29 STRICTER EFFICIENCY, ENVIRONMENTAL, REGULATORY OR SAFETY
30 STANDARDS.
19890H0444B3625 - 7 -
1 (C) EXPAND, REPLACE, UPDATE OR UPGRADE EXISTING FACILITIES
2 OR IMPROVEMENTS OR PROVIDE NEW FACILITIES OR IMPROVEMENTS TO
3 PROVIDE BETTER SERVICE TO OR MEET THE NEEDS OF EXISTING
4 DEVELOPMENT.
5 (2) NO TAPPING FEE COLLECTED BY A MUNICIPAL AUTHORITY MAY BE
6 USED FOR MAINTENANCE, OPERATION OR REPLACEMENT EXPENSES EXCEPT
7 FOR THE RECAPTURE OF THOSE EXPENSES INCURRED IN INSTALLING
8 OVERSIZED FACILITIES, INCLUDING, BUT NOT LIMITED TO, RESERVE
9 FUNDS, SINKING FUNDS, THE PRINCIPAL AND INTEREST ON BONDS AND
10 THE AMOUNT OF LOANS OR INTEREST THEREON. AS USED IN THIS CLAUSE,
11 "MAINTENANCE, OPERATION OR REPLACEMENT EXPENSES" ARE THOSE
12 EXPENDITURES MADE DURING THE USEFUL LIFE OF A SEWER OR WATER
13 SYSTEM FOR LABOR, MATERIALS, UTILITIES, EQUIPMENT ACCESSORIES OR
14 APPURTENANCES AND OTHER ITEMS WHICH ARE NECESSARY TO MANAGE AND
15 MAINTAIN THE SYSTEM CAPACITY AND PERFORMANCE AND TO PROVIDE THE
16 SERVICE FOR WHICH THE SYSTEM WAS CONSTRUCTED.
17 (3) EVERY MUNICIPAL AUTHORITY CHARGING A TAPPING, CONNECTION
18 OR SIMILAR FEE IN EXCESS OF FIVE HUNDRED DOLLARS ($500.00) SHALL
19 RECOMPUTE THE TAPPING FEE CHARGEABLE AT THE END OF EACH FISCAL
20 YEAR OF THE MUNICIPAL AUTHORITY. THE MUNICIPAL AUTHORITY SHALL
21 HOLD A PUBLIC HEARING NO MORE THAN SIXTY DAYS AFTER THE END OF
22 THE FISCAL YEAR, AT WHICH THE MUNICIPAL AUTHORITY SHALL PRESENT
23 A DETAILED ITEMIZATION OF ALL CALCULATIONS CLEARLY SHOWING THE
24 MANNER IN WHICH THE FEE WAS DETERMINED. A REVISED TAPPING FEE
25 MAY BE IMPOSED UPON THOSE WHO SUBSEQUENTLY CONNECT TO THE
26 SYSTEM.
27 (4) NO MUNICIPAL AUTHORITY SHALL HAVE THE POWER TO REQUIRE
28 THE CONSTRUCTION OR DEDICATION OF ANY IMPROVEMENTS OF ANY NATURE
29 WHATSOEVER OR IMPOSE ANY ASSESSMENT, EXACTION, FEE OR
30 CONTRIBUTION IN LIEU THEREOF OR ANY OTHER COMPONENT FEE EXCEPT
19890H0444B3625 - 8 -
1 AS MAY BE PROVIDED SPECIFICALLY HEREIN.
2 (5) TAPPING FEES MAY BE INCREASED TO AN APPLICANT FOR
3 CONNECTIONS NOT MADE WITHIN FIVE YEARS FOLLOWING THE DATE OF
4 PRELIMINARY SUBDIVISION APPROVAL.
5 (6) NOTWITHSTANDING THE PROVISIONS OF THIS SUBSECTION, NO
6 FEE AUTHORIZED UNDER THIS CLAUSE SHALL EXCEED AN AMOUNT
7 RECOMMENDED BY AN INDEPENDENT CONSULTING ENGINEER OR
8 PROFESSIONAL RATE CONSULTANT RETAINED BY THE MUNICIPAL
9 AUTHORITY.
10 * * *
11 (Y) WHERE A SEWER OR WATER SYSTEM OF A MUNICIPAL AUTHORITY
12 IS TO BE EXTENDED AT THE EXPENSE OF THE OWNER OR OWNERS OF
13 PROPERTIES, OR WHERE THE MUNICIPAL AUTHORITY OTHERWISE WOULD
14 CONSTRUCT THE CONNECTION OR CUSTOMER FACILITIES SERVICES (OTHER
15 THAN WATER-METER INSTALLATION), OR BOTH, THE PROPERTY OWNER OR
16 OWNERS SHALL HAVE THE RIGHT TO CONSTRUCT THE EXTENSION OR MAKE
17 THE CONNECTION AND INSTALL THE CUSTOMER FACILITIES HIMSELF OR
18 THEMSELVES OR THROUGH A SUBCONTRACTOR APPROVED BY THE MUNICIPAL
19 AUTHORITY, WHICH APPROVAL SHALL NOT BE UNREASONABLY WITHHELD:
20 PROVIDED, THAT THE MUNICIPAL AUTHORITY SHALL HAVE THE RIGHT, AT
21 ITS OPTION, TO PERFORM THE CONSTRUCTION ITSELF ONLY IF THE
22 MUNICIPAL AUTHORITY PROVIDES THE CONNECTION, EXTENSION OR
23 CUSTOMER FACILITIES AT A LOWER COST AND WITHIN THE SAME
24 TIMETABLE SPECIFIED OR PROPOSED BY THE PROPERTY OWNER OR OWNERS
25 OR HIS OR THEIR APPROVED SUBCONTRACTOR. CONSTRUCTION BY THE
26 PROPERTY OWNER OR OWNERS SHALL BE IN ACCORDANCE WITH PLANS AND
27 SPECIFICATIONS APPROVED BY THE MUNICIPAL AUTHORITY AND SHALL BE
28 UNDERTAKEN ONLY PURSUANT TO THE EXISTING REGULATIONS,
29 REQUIREMENTS, RULES AND STANDARDS OF THE MUNICIPAL AUTHORITY
30 APPLICABLE TO SUCH CONSTRUCTION AND SHALL BE FURTHER SUBJECT TO
19890H0444B3625 - 9 -
1 INSPECTION BY AN INSPECTOR AUTHORIZED TO ACCEPT AND APPROVE SUCH
2 CONSTRUCTION AND EMPLOYED BY THE MUNICIPAL AUTHORITY DURING
3 CONSTRUCTION. A PROPERTY OWNER OR OWNERS WHO WISH TO UNDER TAKE
4 SUCH CONSTRUCTION MAY BE REQUIRED TO DEPOSIT WITH THE MUNICIPAL
5 AUTHORITY, IN ADVANCE OF CONSTRUCTION, THE MUNICIPAL AUTHORITY'S
6 ESTIMATED REASONABLE AND NECESSARY COST OF REVIEWING PLANS AND
7 CONSTRUCTION INSPECTIONS. REIMBURSEMENT FOR PLAN REVIEW AND
8 INSPECTIONS SHALL BE BASED UPON A SCHEDULE ESTABLISHED BY
9 ORDINANCE OR RESOLUTION AND SHALL COMPLY WITH SECTION 510(G) OF
10 THE "PENNSYLVANIA MUNICIPALITIES PLANNING CODE." THE MUNICIPAL
11 AUTHORITY MAY REQUIRE THE PROPERTY OWNER OR OWNERS TO POST
12 APPROPRIATE FINANCIAL SECURITY IN ACCORDANCE WITH THIS SECTION
13 OR SECTIONS 509 AND 510 OF THE "PENNSYLVANIA MUNICIPALITIES
14 PLANNING CODE." UPON COMPLETION OF CONSTRUCTION, THE PROPERTY
15 OWNER OR OWNERS SHALL DEDICATE, AND THE MUNICIPAL AUTHORITY
16 SHALL ACCEPT, THE IMPROVEMENTS SO INSTALLED BY APPROPRIATE LEGAL
17 DOCUMENT IN ACCORDANCE WITH THE PROVISIONS OF SECTION 509 OF THE
18 "PENNSYLVANIA MUNICIPALITIES PLANNING CODE."
19 (Z) WHERE A PROPERTY OWNER OR OWNERS CONSTRUCT OR CAUSE TO
20 BE CONSTRUCTED ANY ADDITION, EXPANSION OR EXTENSION OF OR TO A
21 SEWER OR WATER SYSTEM OF A MUNICIPAL AUTHORITY WHICH PROVIDES
22 FUTURE EXCESS CAPACITY TO ACCOMMODATE FUTURE DEVELOPMENT UPON
23 THE LANDS OF OTHERS, INCLUDING THE LANDS OR RIGHTS-OF-WAY OF THE
24 MUNICIPAL AUTHORITY, THE MUNICIPAL AUTHORITY SHALL PROVIDE FOR
25 THE REIMBURSEMENT TO THE PROPERTY OWNER OR OWNERS WHEN ANOTHER
26 PROPERTY OWNER OR OWNERS WHO IS BENEFITED CONNECTS TO THE
27 ADDITION, EXPANSION OR EXTENSION WITHIN TEN YEARS OF THE DATE OF
28 THE DEDICATION OF SUCH ADDITION, EXPANSION OR EXTENSION TO THE
29 MUNICIPAL AUTHORITY, IN ACCORDANCE WITH THE FOLLOWING
30 PROVISIONS:
19890H0444B3625 - 10 -
1 (1) ONSITE FACILITIES. REIMBURSEMENT SHALL BE LIMITED TO
2 THOSE LINES OR FACILITIES WITHIN OR UPON THE LANDS OF THE
3 PROPERTY OWNER OR OWNERS WHICH ARE REQUIRED BY THE MUNICIPAL
4 AUTHORITY TO BE OVERSIZED, AND WHICH HAVE NOT PREVIOUSLY BEEN
5 PAID FOR BY THE MUNICIPAL AUTHORITY, SO AS TO ACCOMMODATE FUTURE
6 EXCESS CAPACITY ABOVE AND BEYOND THAT WHICH IS OTHERWISE
7 REQUIRED TO SERVICE THE LANDS OF THE PROPERTY OWNER OR OWNERS:
8 PROVIDED, THAT SUCH SEWER LINES SHALL BE GREATER THAN EIGHT
9 INCHES IN DIAMETER, AND SUCH WATER LINES SHALL BE GREATER THAN
10 SIX INCHES IN DIAMETER. REIMBURSEMENT SHALL NOT INCLUDE
11 MINIMALLY-SIZED INTERNAL SEWER OR WATER DISTRIBUTION LINES
12 REQUIRED TO BE INSTALLED AS A CONDITION TO THE MUNICIPAL
13 AUTHORITY'S PROVISION OF SERVICE TO THE LANDS OF THE PROPERTY
14 OWNER OR OWNERS.
15 (2) OFFSITE FACILITIES. NO REIMBURSEMENT SHALL BE PROVIDED
16 IF THE OFFSITE EXTENSION OF SEWER AND WATER LINES DOES NOT
17 EXTEND BEYOND TWO HUNDRED FIFTY FEET FROM THE PROPERTY LIMITS OF
18 THE LANDS OF THE PROPERTY OWNER OR OWNERS INSTALLING THE LINES
19 AND IF THE LINES SO INSTALLED ARE EQUAL TO OR LESS THAN THE
20 MINIMAL SIZE REQUIRED BY SOUND ENGINEERING PRACTICE TO SERVICE
21 THE PROPOSED DEVELOPMENT. ANY SEWER OR WATER LINE EXTENSIONS
22 INSTALLED BY THE PROPERTY OWNER OR OWNERS BEYOND TWO HUNDRED
23 FIFTY FEET OF THE LIMITS OF HIS OR THEIR LAND WHICH EXCEEDS
24 THOSE MINIMAL-SIZE REQUIREMENTS REQUIRED BY SOUND ENGINEERING
25 PRACTICE FOR THE PROPOSED DEVELOPMENT AS SET FORTH IN THIS ACT
26 SHALL QUALIFY FOR REIMBURSEMENT IN ACCORDANCE WITH THE FOLLOWING
27 FORMULA:
28 (I) A FRACTION, THE NUMERATOR OF WHICH SHALL BE THE TOTAL
29 COST OF THE OFFSITE SEWER OR WATER LINE EXTENSION INSTALLED,
30 WHICH COSTS SHALL INCLUDE ALL IMPROVEMENTS IN THE NATURE OF ANY
19890H0444B3625 - 11 -
1 FORCE MAINS, GRAVITY SEWER LINES, PUMP STATIONS, WATER MAINS AND
2 SEWER AND WATER FACILITIES AND APPURTENANCES; AND THE
3 DENOMINATOR OF WHICH SHALL BE THE TOTAL OFFSITE LINEAL FOOTAGE
4 OF THE WATER OR SEWER LINE EXTENSION INSTALLED; MULTIPLIED BY
5 TWO HUNDRED FIFTY; WHICH PRODUCT SHALL RESULT IN THE TOTAL
6 AMOUNT OF NONREIMBURSABLE COSTS ASSOCIATED WITH THE SEWER OR
7 WATER LINE EXTENSION.
8 (II) THE TOTAL AMOUNT OF NONREIMBURSABLE COSTS DETERMINED IN
9 ACCORDANCE WITH THE ABOVE CALCULATION SHALL BE DEDUCTED FROM THE
10 TOTAL COST OF THE OFFSITE EXTENSION AS DESCRIBED IN SUBPARAGRAPH
11 (I), AND THE REMAINDER SHALL BE THE AMOUNT OF REIMBURSEMENT
12 WHICH SHALL BE PAYABLE TO THE PROPERTY OWNER OR OWNERS
13 INSTALLING THE EXTENSION.
14 (3) THE MUNICIPAL AUTHORITY SHALL, IN THE PREPARATION OF THE
15 NECESSARY REIMBURSEMENT AGREEMENT WITH THE PROPERTY OWNER OR
16 OWNERS FOR WHOSE BENEFIT REIMBURSEMENT WILL BE PROVIDED, ATTACH
17 AS AN EXHIBIT AN ITEMIZED LISTING OF ALL SEWER AND WATER
18 FACILITIES FOR WHICH REIMBURSEMENT SHALL BE PROVIDED.
19 (4) THE AMOUNT TO WHICH A PROPERTY OWNER OR OWNERS SHALL BE
20 ENTITLED AS REIMBURSEMENT SHALL INCLUDE ALL LABOR AND MATERIAL,
21 ENGINEERING DESIGN CHARGES, THE COST OF PERFORMANCE AND
22 MAINTENANCE BONDS, MUNICIPAL AUTHORITY REVIEW AND INSPECTION
23 CHARGES, AS WELL AS FLUSHING AND TELEVISING CHARGES AND ANY AND
24 ALL CHARGES INVOLVED IN THE ACCEPTANCE AND DEDICATION OF SUCH
25 FACILITIES BY THE MUNICIPAL AUTHORITY. FURTHER, THE REIMBURSABLE
26 AMOUNT SHALL BE SUBJECT TO A PER ANNUM INCREASE COMMENCING FROM
27 THE DATE OF EXECUTION OF THE REIMBURSEMENT AGREEMENT BETWEEN THE
28 PROPERTY OWNER OR OWNERS AND THE MUNICIPAL AUTHORITY, PRORATED
29 FOR ANY PORTION OF ANY YEAR FROM THE DATE OF THE AGREEMENT TO
30 THE DATE OF REIMBURSEMENT. THE AMOUNT OF THE PER ANNUM INCREASE
19890H0444B3625 - 12 -
1 SHALL BE EQUAL TO THE WEEKLY AVERAGE YIELD ON UNITED STATES
2 TREASURY SECURITIES ADJUSTED TO A CONSTANT MATURITY OF TEN
3 YEARS. ONCE DETERMINED, THE PER ANNUM INCREASE SHALL REMAIN
4 CONSTANT THROUGHOUT THE ENTIRE TERM FOR WHICH THE PROPERTY OWNER
5 OR OWNERS QUALIFY FOR REIMBURSEMENT. A MUNICIPAL AUTHORITY SHALL
6 BE ENTITLED TO DEDUCT FROM EACH REIMBURSEMENT PAYMENT AN AMOUNT
7 EQUAL TO FIVE PER CENT OF THE AMOUNT OR AMOUNTS WHICH SHALL BE
8 DEEMED TO REPRESENT THE APPROPRIATE CHARGE FOR ADMINISTRATIVE
9 OVERHEAD EXPENSES AND SERVICES RENDERED IN CALCULATING,
10 COLLECTING, MONITORING AND DISBURSING THE REIMBURSEMENT PAYMENTS
11 TO THE PROPERTY OWNER OR OWNERS ENTITLED THERETO.
12 (5) THE PROPERTY OWNER OR OWNERS FOR WHOSE BENEFIT THE
13 REIMBURSEMENT PROVISIONS SHALL APPLY SHALL BEAR ANY AND ALL
14 COSTS ASSOCIATED WITH ANY LEGAL ACTION WHICH MAY BE INSTITUTED
15 BY A SUBSEQUENT PROPERTY OWNER OR OWNERS, ENTITY OR USER WHO MAY
16 QUESTION THE METHOD OF CALCULATION OF THE REIMBURSEMENT. THE
17 PROPERTY OWNER OR OWNERS FOR WHOSE BENEFIT THE REIMBURSEMENT IS
18 SOUGHT SHALL BEAR ANY AND ALL COSTS INVOLVED IN PURSUING THE
19 PROPERTY OWNER'S OR OWNERS' RIGHT TO REIMBURSEMENT AGAINST ANY
20 PERSON, ENTITY OR USER, AND THE PROPERTY OWNER OR OWNERS SHALL
21 BE AUTHORIZED TO PURSUE THE CLAIM, IF NECESSARY, IN THE NAME OF
22 THE MUNICIPAL AUTHORITY.
23 (6) IN THE EVENT THAT ANY PERSON, ENTITY OR USER QUESTIONS
24 THE METHOD OF CALCULATION OF THE REIMBURSEMENT, THE MUNICIPAL
25 AUTHORITY RESERVES THE RIGHT, IN ITS SOLE DISCRETION, TO CONNECT
26 OR PERMIT THE CONNECTION OF THE DEVELOPMENT OR PROPERTY OF ANY
27 PERSON, ENTITY OR USER TO AVOID THE POTENTIAL OF INCREASED
28 FINANCIAL LOSS DUE TO DELAY IN PROVISION OF SEWER AND WATER
29 SERVICE: PROVIDED, THAT THE MUNICIPAL AUTHORITY SHALL REQUIRE
30 ANY PERSON, ENTITY OR USER WHO QUESTIONS THE METHOD OF
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1 CALCULATION TO POST THE ENTIRE DISPUTED AMOUNT INTO AN INTEREST-
2 BEARING ESCROW ACCOUNT WITH THE MUNICIPAL AUTHORITY PENDING THE
3 RESOLUTION OF THE DISPUTE. THE MUNICIPAL AUTHORITY SHALL BE
4 AUTHORIZED TO DEDUCT FROM THE ACCOUNT A SUM NOT TO EXCEED FIVE
5 PER CENT, WHICH SHALL REPRESENT THE ADMINISTRATIVE COSTS
6 ASSOCIATED WITH THE ESTABLISHMENT AND MAINTENANCE OF THE ESCROW
7 ACCOUNT. IF THE MUNICIPAL AUTHORITY SHALL ELECT TO MAKE SUCH
8 CONNECTION AND PROVISION OF SEWER OR WATER SERVICE, SUCH ACTION
9 SHALL IN NO MANNER RELEASE OR WAIVE THE RIGHTS OF THE PROPERTY
10 OWNER OR OWNERS CLAIMING ENTITLEMENT TO REIMBURSEMENT PURSUANT
11 TO THE PROVISIONS OF THE ACT.
12 (7) A MUNICIPAL AUTHORITY SHALL BE REQUIRED TO NOTIFY BY
13 CERTIFIED MAIL, TO THEIR LAST KNOWN ADDRESS, THE PROPERTY OWNER
14 OR OWNERS FOR WHOSE BENEFIT SUCH REIMBURSEMENT SHALL APPLY
15 WITHIN THIRTY DAYS OF THE MUNICIPAL AUTHORITY'S RECEIPT OF ANY
16 SUCH REIMBURSEMENT PAYMENT. IN THE EVENT THAT THE PROPERTY OWNER
17 OR OWNERS HAVE NOT CLAIMED A REIMBURSEMENT PAYMENT WITHIN ONE
18 HUNDRED TWENTY DAYS OF THE MAILING OF THE NOTICE, THE PAYMENT
19 SHALL REVERT TO AND BECOME THE SOLE PROPERTY OF THE MUNICIPAL
20 AUTHORITY WITH NO FURTHER OBLIGATION ON THE PART OF THE
21 MUNICIPAL AUTHORITY TO REFUND THE PAYMENT TO THE PROPERTY OWNER
22 OR OWNERS.
23 (8) NO MUNICIPAL AUTHORITY SHALL HAVE THE POWER TO REQUIRE
24 THE CONSTRUCTION OR DEDICATION OF ANY IMPROVEMENTS OF ANY NATURE
25 WHATSOEVER OR IMPOSE ANY ASSESSMENT, EXACTION, FEE OR
26 CONTRIBUTION IN LIEU THEREOF, OR ANY CONNECTION, TAPPING OR
27 SIMILAR FEE EXCEPT AS PROVIDED SPECIFICALLY IN THIS SECTION.
28 SECTION 2. THIS ACT SHALL TAKE EFFECT IMMEDIATELY.
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