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        PRIOR PRINTER'S NOS. 486, 3625                PRINTER'S NO. 3941

THE GENERAL ASSEMBLY OF PENNSYLVANIA


HOUSE BILL

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 AMENDED ON THIRD CONSIDERATION, HOUSE OF REPRESENTATIVES,
           JUNE 30, 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," further providing for powers.

    15     The General Assembly of the Commonwealth of Pennsylvania
    16  hereby enacts as follows:
    17     Section 1.  Clause (t) of subsection B of section 4 of the
    18  act of May 2, 1945 (P.L.382, No.164), known as the Municipality
    19  Authorities Act of 1945, amended May 15, 1963 (P.L.33, No.30),
    20  is amended and the subsection is amended by adding clauses to


     1  read:
     2     Section 4.  Purposes and Powers; General.--* * *
     3     B.  Every Authority is hereby granted, and shall have and may
     4  exercise all powers necessary or convenient for the carrying out
     5  of the aforesaid purposes, including but without limiting the
     6  generality of the foregoing, the following rights and powers:
     7     * * *
     8     [(t)  To charge a tapping fee whenever the owner of any
     9  property connects such property with a sewer system or water
    10  main constructed by the Authority which fee shall be in addition
    11  to any charges assessed and collected against such property in
    12  the construction of such sewer or water main by the Authority or
    13  any rental charges assessed by the Authority. Whenever a sewer
    14  system or water main or any part or extension thereof owned by
    15  an Authority has been constructed by the Authority at the
    16  expense of a private person or corporation or has been
    17  constructed by a private person or corporation under the
    18  supervision of the Authority at the expense of the private
    19  person or corporation, the Authority shall have the right to
    20  charge a tapping fee and refund said tapping fee or any part
    21  thereof to the person or corporation who has paid for the
    22  construction of said sewer system or water main or any part or
    23  extension thereof. The total of said refunds shall never exceed
    24  the cost of said system or main or any part or extension thereof
    25  to the person or corporation paying for construction thereof. In
    26  any case where the property connected or to be connected with
    27  the sewer system of the Authority is not equipped with a water
    28  meter, the Authority may install such a meter at its own cost
    29  and expense: Provided, however, That if the property is supplied
    30  with water from the facilities of a public water supply agency,
    19890H0444B3941                  - 2 -

     1  the authority shall not install such meter without the consent
     2  and approval of the public water supply agency.]
     3     (t)  To charge certain enumerated fees to property owners who  <--
     4  connect to the Municipal Authority's sewer or water system,
     5  which fees shall be determined at the time of subdivision
     6  approval under the "Pennsylvania Municipalities Planning Code,"
     7  and shall be payable at the time of issuance of a building
     8  permit, or, if no building permit is required, immediately
     9  preceding construction, or at such earlier time as the property
    10  owner or owners may agree. The fees shall be in addition to any
    11  charges assessed against the property in the construction of a
    12  sewer or water main by the Municipal Authority in accordance
    13  with clauses (r) and (s) and not included in the calculation of
    14  any other fees specified herein as well as any other user
    15  charges imposed by the Municipal Authority pursuant to clause
    16  (h) and not included in the calculation of any other fee
    17  specified herein.
    18     (1)  The fees may include some or all of the following fee
    19  components, which shall be separately set forth in the
    20  appropriate resolution of the Municipal Authority governing such
    21  fees:
    22     (i)  Connection fee. A fee based upon the actual cost of the
    23  connection of the property extending from the Municipal
    24  Authority's main to the property line or curb stop of the
    25  property so connected. In lieu of the payment of the fee, a
    26  Municipal Authority may require the construction and dedication
    27  of those facilities required to connect the lands of the
    28  property owner or owners requesting such connection.
    29     (ii)  Customer facilities fee. A fee based upon the actual
    30  direct cost of facilities serving the connected property from
    19890H0444B3941                  - 3 -

     1  the property line or curb stop to the proposed dwelling or
     2  building to be served. The fee shall be chargeable only in the
     3  event that the Municipal Authority and not the property owner or
     4  owners installs the customer facilities. In lieu of the payment
     5  of any fee, a Municipal Authority may require the construction
     6  of these facilities required to install customer facilities to
     7  the lands of the property owner or owners requesting customer
     8  facilities.
     9     (iii)  Tapping fee. A fee based upon some or all of the
    10  following fee components which shall be separately set forth in
    11  the appropriate resolution of the Municipal Authority governing
    12  the fee:
    13     (A)  Capacity and distribution-collection component. An
    14  amount not to exceed the amount calculated in the following
    15  manner:
    16     (I)  The amount representing all debt service, including, but
    17  not limited to sinking funds, reserve funds, the principal and
    18  interest on bonds, and the amount of any loans or interest
    19  thereon, paid by the municipality or Municipal Authority to
    20  defray the capital cost of developing only the capital
    21  facilities or components which are in use as part of the system,
    22  calculated as of the end of the immediately preceding fiscal
    23  year of the municipality or Municipal Authority, shall be added
    24  to all capital expenditures made by the municipality or
    25  Municipal Authority for facilities or components which are in
    26  use and were not funded by a bond issue or debt for the
    27  development of the system as of the end of the immediately
    28  preceding fiscal year.
    29     (II)  Any contributions, gifts, payments or subsidies to the
    30  municipality or Municipal Authority received from, and not
    19890H0444B3941                  - 4 -

     1  reimbursable to, any Federal, State, county or municipal
     2  government or agency or any private person, and that portion of
     3  amounts paid to the municipality or Municipal Authority by a
     4  public entity under a service agreement or service contract
     5  which is not repaid to the public entity by the municipality or
     6  Municipal Authority, shall be subtracted from the amount
     7  calculated under subclause (I).
     8     (III)  The remainder shall be divided by the total number of
     9  service units served by the municipality or Municipal Authority
    10  at the end of the immediately preceding fiscal year and the
    11  quotient shall be apportioned for each new connection, to
    12  produce the system-buy-in contribution to the cost of the
    13  system. In attributing service units to each new connector, the
    14  estimated daily flow of sewage or water for the connector shall
    15  be divided by the average daily flow of sewage or water to the
    16  average single-family residence in the service district, to
    17  produce the number of service units to be attributed.
    18     (B)  Special purpose component. An amount based upon the
    19  allocable portion of the original cost of constructing special
    20  purpose facilities, including, but not limited to, booster pump
    21  stations, fire service facilities and industrial wastewater
    22  treatment facilities, to the extent that such facilities produce
    23  a material benefit to the property which is connecting to the
    24  system.
    25     (C)  Reimbursement component. An amount necessary to
    26  recapture the allocable portion of oversized facilities pursuant
    27  to clause (z).
    28     (iv)  No tapping fee may be required or collected hereunder
    29  which would do any of the following:
    30     (A)  Constitute the maintenance, repair or replacement of
    19890H0444B3941                  - 5 -

     1  existing facilities.
     2     (B)  Expand, replace, update or upgrade existing facilities
     3  or improvements to serve existing development in order to meet
     4  stricter efficiency, environmental, regulatory or safety
     5  standards.
     6     (C)  Expand, replace, update or upgrade existing facilities
     7  or improvements or provide new facilities or improvements to
     8  provide better service to or meet the needs of existing
     9  development.
    10     (2)  No tapping fee collected by a Municipal Authority may be
    11  used for maintenance, operation or replacement expenses except
    12  for the recapture of those expenses incurred in installing
    13  oversized facilities, including, but not limited to, reserve
    14  funds, sinking funds, the principal and interest on bonds and
    15  the amount of loans or interest thereon. As used in this clause,
    16  "maintenance, operation or replacement expenses" are those
    17  expenditures made during the useful life of a sewer or water
    18  system for labor, materials, utilities, equipment accessories or
    19  appurtenances and other items which are necessary to manage and
    20  maintain the system capacity and performance and to provide the
    21  service for which the system was constructed.
    22     (3)  Every Municipal Authority charging a tapping, connection
    23  or similar fee in excess of five hundred dollars ($500.00) shall
    24  recompute the tapping fee chargeable at the end of each fiscal
    25  year of the Municipal Authority. The Municipal Authority shall
    26  hold a public hearing no more than sixty days after the end of
    27  the fiscal year, at which the Municipal Authority shall present
    28  a detailed itemization of all calculations clearly showing the
    29  manner in which the fee was determined. A revised tapping fee
    30  may be imposed upon those who subsequently connect to the
    19890H0444B3941                  - 6 -

     1  system.
     2     (4)  No Municipal Authority shall have the power to require
     3  the construction or dedication of any improvements of any nature
     4  whatsoever or impose any assessment, exaction, fee or
     5  contribution in lieu thereof or any other component fee except
     6  as may be provided specifically herein.
     7     (5)  Tapping fees may be increased to an applicant for
     8  connections not made within five years following the date of
     9  preliminary subdivision approval.
    10     (6)  Notwithstanding the provisions of this subsection, no
    11  fee authorized under this clause shall exceed an amount
    12  recommended by an independent consulting engineer or
    13  professional rate consultant retained by the Municipal
    14  Authority.
    15     * * *
    16     (y)  Where a sewer or water system of a Municipal Authority
    17  is to be extended at the expense of the owner or owners of
    18  properties, or where the Municipal Authority otherwise would
    19  construct the connection or customer facilities services (other
    20  than water-meter installation), or both, the property owner or
    21  owners shall have the right to construct the extension or make
    22  the connection and install the customer facilities himself or
    23  themselves or through a subcontractor approved by the Municipal
    24  Authority, which approval shall not be unreasonably withheld:
    25  Provided, That the Municipal Authority shall have the right, at
    26  its option, to perform the construction itself only if the
    27  Municipal Authority provides the connection, extension or
    28  customer facilities at a lower cost and within the same
    29  timetable specified or proposed by the property owner or owners
    30  or his or their approved subcontractor. Construction by the
    19890H0444B3941                  - 7 -

     1  property owner or owners shall be in accordance with plans and
     2  specifications approved by the Municipal Authority and shall be
     3  undertaken only pursuant to the existing regulations,
     4  requirements, rules and standards of the Municipal Authority
     5  applicable to such construction and shall be further subject to
     6  inspection by an inspector authorized to accept and approve such
     7  construction and employed by the Municipal Authority during
     8  construction. A property owner or owners who wish to under take
     9  such construction may be required to deposit with the Municipal
    10  Authority, in advance of construction, the Municipal Authority's
    11  estimated reasonable and necessary cost of reviewing plans and
    12  construction inspections. Reimbursement for plan review and
    13  inspections shall be based upon a schedule established by
    14  ordinance or resolution and shall comply with section 510(g) of
    15  the "Pennsylvania Municipalities Planning Code." The Municipal
    16  Authority may require the property owner or owners to post
    17  appropriate financial security in accordance with this section
    18  or sections 509 and 510 of the "Pennsylvania Municipalities
    19  Planning Code." Upon completion of construction, the property
    20  owner or owners shall dedicate, and the Municipal Authority
    21  shall accept, the improvements so installed by appropriate legal
    22  document in accordance with the provisions of section 509 of the
    23  "Pennsylvania Municipalities Planning Code."
    24     (z)  Where a property owner or owners construct or cause to
    25  be constructed any addition, expansion or extension of or to a
    26  sewer or water system of a Municipal Authority which provides
    27  future excess capacity to accommodate future development upon
    28  the lands of others, including the lands or rights-of-way of the
    29  Municipal Authority, the Municipal Authority shall provide for
    30  the reimbursement to the property owner or owners when another
    19890H0444B3941                  - 8 -

     1  property owner or owners who is benefited connects to the
     2  addition, expansion or extension within ten years of the date of
     3  the dedication of such addition, expansion or extension to the
     4  Municipal Authority, in accordance with the following
     5  provisions:
     6     (1)  Onsite facilities. Reimbursement shall be limited to
     7  those lines or facilities within or upon the lands of the
     8  property owner or owners which are required by the Municipal
     9  Authority to be oversized, and which have not previously been
    10  paid for by the Municipal Authority, so as to accommodate future
    11  excess capacity above and beyond that which is otherwise
    12  required to service the lands of the property owner or owners:
    13  Provided, That such sewer lines shall be greater than eight
    14  inches in diameter, and such water lines shall be greater than
    15  six inches in diameter. Reimbursement shall not include
    16  minimally-sized internal sewer or water distribution lines
    17  required to be installed as a condition to the Municipal
    18  Authority's provision of service to the lands of the property
    19  owner or owners.
    20     (2)  Offsite facilities. No reimbursement shall be provided
    21  if the offsite extension of sewer and water lines does not
    22  extend beyond two hundred fifty feet from the property limits of
    23  the lands of the property owner or owners installing the lines
    24  and if the lines so installed are equal to or less than the
    25  minimal size required by sound engineering practice to service
    26  the proposed development. Any sewer or water line extensions
    27  installed by the property owner or owners beyond two hundred
    28  fifty feet of the limits of his or their land which exceeds
    29  those minimal-size requirements required by sound engineering
    30  practice for the proposed development as set forth in this act
    19890H0444B3941                  - 9 -

     1  shall qualify for reimbursement in accordance with the following
     2  formula:
     3     (i)  A fraction, the numerator of which shall be the total
     4  cost of the offsite sewer or water line extension installed,
     5  which costs shall include all improvements in the nature of any
     6  force mains, gravity sewer lines, pump stations, water mains and
     7  sewer and water facilities and appurtenances; and the
     8  denominator of which shall be the total offsite lineal footage
     9  of the water or sewer line extension installed; multiplied by
    10  two hundred fifty; which product shall result in the total
    11  amount of nonreimbursable costs associated with the sewer or
    12  water line extension.
    13     (ii)  The total amount of nonreimbursable costs determined in
    14  accordance with the above calculation shall be deducted from the
    15  total cost of the offsite extension as described in subparagraph
    16  (i), and the remainder shall be the amount of reimbursement
    17  which shall be payable to the property owner or owners
    18  installing the extension.
    19     (3)  The Municipal Authority shall, in the preparation of the
    20  necessary reimbursement agreement with the property owner or
    21  owners for whose benefit reimbursement will be provided, attach
    22  as an exhibit an itemized listing of all sewer and water
    23  facilities for which reimbursement shall be provided.
    24     (4)  The amount to which a property owner or owners shall be
    25  entitled as reimbursement shall include all labor and material,
    26  engineering design charges, the cost of performance and
    27  maintenance bonds, Municipal Authority review and inspection
    28  charges, as well as flushing and televising charges and any and
    29  all charges involved in the acceptance and dedication of such
    30  facilities by the Municipal Authority. Further, the reimbursable
    19890H0444B3941                 - 10 -

     1  amount shall be subject to a per annum increase commencing from
     2  the date of execution of the reimbursement agreement between the
     3  property owner or owners and the Municipal Authority, prorated
     4  for any portion of any year from the date of the agreement to
     5  the date of reimbursement. The amount of the per annum increase
     6  shall be equal to the weekly average yield on United States
     7  Treasury securities adjusted to a constant maturity of ten
     8  years. Once determined, the per annum increase shall remain
     9  constant throughout the entire term for which the property owner
    10  or owners qualify for reimbursement. A Municipal Authority shall
    11  be entitled to deduct from each reimbursement payment an amount
    12  equal to five per cent of the amount or amounts which shall be
    13  deemed to represent the appropriate charge for administrative
    14  overhead expenses and services rendered in calculating,
    15  collecting, monitoring and disbursing the reimbursement payments
    16  to the property owner or owners entitled thereto.
    17     (5)  The property owner or owners for whose benefit the
    18  reimbursement provisions shall apply shall bear any and all
    19  costs associated with any legal action which may be instituted
    20  by a subsequent property owner or owners, entity or user who may
    21  question the method of calculation of the reimbursement. The
    22  property owner or owners for whose benefit the reimbursement is
    23  sought shall bear any and all costs involved in pursuing the
    24  property owner's or owners' right to reimbursement against any
    25  person, entity or user, and the property owner or owners shall
    26  be authorized to pursue the claim, if necessary, in the name of
    27  the Municipal Authority.
    28     (6)  In the event that any person, entity or user questions
    29  the method of calculation of the reimbursement, the Municipal
    30  Authority reserves the right, in its sole discretion, to connect
    19890H0444B3941                 - 11 -

     1  or permit the connection of the development or property of any
     2  person, entity or user to avoid the potential of increased
     3  financial loss due to delay in provision of sewer and water
     4  service: Provided, That the Municipal Authority shall require
     5  any person, entity or user who questions the method of
     6  calculation to post the entire disputed amount into an interest-
     7  bearing escrow account with the Municipal Authority pending the
     8  resolution of the dispute. The Municipal Authority shall be
     9  authorized to deduct from the account a sum not to exceed five
    10  per cent, which shall represent the administrative costs
    11  associated with the establishment and maintenance of the escrow
    12  account. If the Municipal Authority shall elect to make such
    13  connection and provision of sewer or water service, such action
    14  shall in no manner release or waive the rights of the property
    15  owner or owners claiming entitlement to reimbursement pursuant
    16  to the provisions of the act.
    17     (7)  A Municipal Authority shall be required to notify by
    18  certified mail, to their last known address, the property owner
    19  or owners for whose benefit such reimbursement shall apply
    20  within thirty days of the Municipal Authority's receipt of any
    21  such reimbursement payment. In the event that the property owner
    22  or owners have not claimed a reimbursement payment within one
    23  hundred twenty days of the mailing of the notice, the payment
    24  shall revert to and become the sole property of the Municipal
    25  Authority with no further obligation on the part of the
    26  Municipal Authority to refund the payment to the property owner
    27  or owners.
    28     (8)  No Municipal Authority shall have the power to require
    29  the construction or dedication of any improvements of any nature
    30  whatsoever or impose any assessment, exaction, fee or
    19890H0444B3941                 - 12 -

     1  contribution in lieu thereof, or any connection, tapping or
     2  similar fee except as provided specifically in this section.
     3     Section 2.  This act shall take effect immediately.
     4     (T)  TO CHARGE CERTAIN ENUMERATED FEES TO PROPERTY OWNERS WHO  <--
     5  DESIRE TO OR ARE REQUIRED TO CONNECT TO THE AUTHORITY'S SEWER OR
     6  WATER SYSTEM. SUCH FEES SHALL BE BASED UPON THE DULY ADOPTED FEE
     7  SCHEDULE AT THE TIME OF PAYMENT AND SHALL BE PAYABLE AT THE TIME
     8  OF APPLICATION FOR CONNECTION OR AT SUCH OTHER TIME AS THE
     9  PROPERTY OWNER AND THE AUTHORITY AGREE OR IN THE CASE OF
    10  PROJECTS TO SERVE EXISTING DEVELOPMENT, SUCH FEES SHALL BE
    11  PAYABLE AT A TIME TO BE DETERMINED BY THE AUTHORITY. AN
    12  AUTHORITY SHALL HAVE THE RIGHT TO REQUIRE THAT NO CAPACITY SHALL
    13  BE GUARANTEED FOR A PROPERTY OWNER OR OWNERS UNTIL SUCH TIME AS
    14  THE TAPPING FEES ENUMERATED HEREIN HAVE AT THE OPTION OF THE
    15  AUTHORITY BEEN PAID OR SECURED BY OTHER FINANCIAL SECURITY. THE
    16  FEES SHALL BE IN ADDITION TO ANY CHARGES ASSESSED AGAINST THE
    17  PROPERTY IN THE CONSTRUCTION OF A SEWER OR WATER MAIN BY THE
    18  AUTHORITY IN ACCORDANCE WITH CLAUSES (R) AND (S) AS WELL AS ANY
    19  OTHER USER CHARGES IMPOSED BY THE AUTHORITY PURSUANT TO CLAUSE
    20  (H) AND SHALL NOT INCLUDE COSTS INCLUDED IN THE CALCULATION OF
    21  SUCH FEES.
    22     (1)  THE FEES MAY INCLUDE SOME OR ALL OF THE FOLLOWING FEE
    23  COMPONENTS, WHICH SHALL BE SEPARATELY SET FORTH IN THE
    24  APPROPRIATE RESOLUTION OF THE AUTHORITY ESTABLISHING SUCH FEES:
    25     (I)  CONNECTION FEE.  A FEE WHICH SHALL NOT EXCEED AN AMOUNT
    26  BASED UPON THE ACTUAL COST OF THE CONNECTION OF THE PROPERTY
    27  EXTENDING FROM THE AUTHORITY'S MAIN TO THE PROPERTY LINE OR CURB
    28  STOP OF THE PROPERTY SO CONNECTED. THE AUTHORITY MAY ALSO BASE
    29  SUCH FEE UPON AN AVERAGE COST FOR PREVIOUSLY INSTALLED
    30  CONNECTIONS OF SIMILAR TYPE AND SIZE. IN LIEU OF THE PAYMENT OF
    19890H0444B3941                 - 13 -

     1  THE FEES, AN AUTHORITY MAY REQUIRE THE CONSTRUCTION AND
     2  DEDICATION OF THOSE FACILITIES BY THE PROPERTY OWNER OR OWNERS
     3  REQUESTING SUCH CONNECTION.
     4     (II)  CUSTOMER FACILITIES FEE.  A FEE WHICH SHALL NOT EXCEED
     5  AN AMOUNT BASED UPON THE ACTUAL COST OF FACILITIES SERVING THE
     6  CONNECTED PROPERTY FROM THE PROPERTY LINE OR CURB STOP TO THE
     7  PROPOSED DWELLING OR BUILDING TO BE SERVED. THE FEE SHALL BE
     8  CHARGEABLE ONLY IN THE EVENT THAT THE AUTHORITY AND NOT THE
     9  PROPERTY OWNER OR OWNERS INSTALLS THE CUSTOMER FACILITIES. IN
    10  LIEU OF THE PAYMENT OF THE CUSTOMER FACILITIES FEE, AN AUTHORITY
    11  MAY REQUIRE THE CONSTRUCTION OF THOSE FACILITIES BY THE PROPERTY
    12  OWNER OR OWNERS REQUESTING CUSTOMER FACILITIES. IN THE CASE OF
    13  WATER SERVICE, THE FEE MAY INCLUDE THE COST OF A WATER METER AND
    14  INSTALLATION IF THE AUTHORITY PROVIDES OR INSTALLS THE SAME. IN
    15  ANY CASE WHERE THE PROPERTY CONNECTED OR TO BE CONNECTED WITH
    16  THE SEWER SYSTEM OF THE AUTHORITY IS NOT EQUIPPED WITH A WATER
    17  METER, THE AUTHORITY MAY INSTALL SUCH A METER AT ITS OWN COST
    18  AND EXPENSE; PROVIDED, HOWEVER, THAT IF THE PROPERTY IS SUPPLIED
    19  WITH WATER FROM THE FACILITIES OF A PUBLIC WATER SUPPLY AGENCY,
    20  THE AUTHORITY SHALL NOT INSTALL SUCH METER WITHOUT THE CONSENT
    21  AND APPROVAL OF THE PUBLIC WATER SUPPLY AGENCY.
    22     (III)  TAPPING FEE.  A FEE WHICH SHALL NOT EXCEED AN AMOUNT
    23  BASED UPON SOME OR ALL OF THE FOLLOWING FEE COMPONENTS, WHICH
    24  SHALL BE SEPARATELY SET FORTH IN THE APPROPRIATE RESOLUTION OF
    25  THE AUTHORITY ESTABLISHING THE FEE. IN LIEU OF THE PAYMENT OF
    26  THE FEE, AN AUTHORITY MAY REQUIRE THE CONSTRUCTION AND
    27  DEDICATION OF ONLY SUCH CAPACITY, DISTRIBUTION-COLLECTION OR
    28  SPECIAL PURPOSE FACILITIES NECESSARY TO SUPPLY SERVICE TO THE
    29  PROPERTY OWNER OR OWNERS.
    30     (A)  CAPACITY PART.  A FEE FOR CAPACITY RELATED FACILITIES
    19890H0444B3941                 - 14 -

     1  WHICH MAY NOT EXCEED AN AMOUNT THAT IS BASED UPON THE COST OF
     2  SUCH FACILITIES, INCLUDING, BUT NOT LIMITED TO: SOURCE OF
     3  SUPPLY, TREATMENT, PUMPING, TRANSMISSION, TRUNK, INTERCEPTOR AND
     4  OUTFALL MAINS, STORAGE, SLUDGE TREATMENT OR DISPOSAL,
     5  INTERCONNECTION OR OTHER GENERAL SYSTEM FACILITIES. SUCH
     6  FACILITIES MAY INCLUDE THOSE THAT PROVIDE EXISTING SERVICE
     7  AND/OR THOSE THAT WILL PROVIDE FUTURE SERVICE. THE COST OF
     8  EXISTING FACILITIES, WHICH SHALL NOT INCLUDE FACILITIES
     9  CONTRIBUTED TO THE AUTHORITY BY ANY PERSON, GOVERNMENT OR
    10  AGENCY, SHALL BE BASED UPON THEIR REPLACEMENT COST OR UPON
    11  HISTORICAL COST TRENDED TO CURRENT COST USING PUBLISHED COST
    12  INDEXES, OR UPON THE HISTORICAL COST PLUS INTEREST AND OTHER
    13  FINANCING FEES PAID ON BONDS FINANCING SUCH FACILITIES. IN THE
    14  CASE OF EXISTING FACILITIES, OUTSTANDING DEBT RELATED TO THE
    15  FACILITIES SHALL BE SUBTRACTED FROM THE COST, PROVIDED HOWEVER,
    16  NO DEBT SHALL BE SUBTRACTED WHICH IS ATTRIBUTABLE TO FACILITIES
    17  EXCLUSIVELY SERVING NEW CUSTOMERS. IN THE CASE OF FACILITIES TO
    18  BE CONSTRUCTED OR ACQUIRED, THE COST OF SUCH FACILITIES SHALL
    19  NOT EXCEED THEIR REASONABLE ESTIMATED COST PROVIDED THAT ANY
    20  SUCH FACILITIES MUST BE INCLUDED IN A DULY ADOPTED ANNUAL BUDGET
    21  OR A FIVE-YEAR CAPITAL IMPROVEMENT PLAN AND THE AUTHORITY HAS
    22  TAKEN ACTION IN FURTHERANCE OF SAID FACILITIES SUCH AS THE
    23  FOLLOWING:
    24     (I)  OBTAINED FINANCING FOR THE FACILITIES;
    25     (II)  ENTERED INTO A CONTRACT OBLIGATING THE AUTHORITY TO
    26  CONSTRUCT OR PAY FOR THE COST OF CONSTRUCTION OF THE FACILITIES
    27  OR ITS PORTION THEREOF IN THE EVENT THAT MULTIPLE PARTIES ARE
    28  CONSTRUCTING SAID FACILITIES;
    29     (III)  HAS OBTAINED A PERMIT FOR THE FACILITIES;
    30     (IV)  HAS SPENT SUBSTANTIAL SUMS OR RESOURCES IN FURTHERANCE
    19890H0444B3941                 - 15 -

     1  OF THE FACILITIES;
     2     (V)  HAS ENTERED INTO A CONTRACT OBLIGATING THE AUTHORITY TO
     3  PURCHASE OR ACQUIRE FACILITIES OWNED BY ANOTHER;
     4     (VI)  HAS PREPARED AN ENGINEERING FEASIBILITY STUDY
     5  SPECIFICALLY RELATED TO THE FACILITIES, WHICH STUDY RECOMMENDS
     6  THE CONSTRUCTION OF THE FACILITIES WITHIN A FIVE-YEAR PERIOD;
     7     (VII)  HAS ENTERED INTO A CONTRACT FOR THE DESIGN OF THE
     8  FACILITIES.
     9  UNDER ALL COST APPROACHES, THE COST OF SAID FACILITIES SHALL BE
    10  REDUCED BY THE AMOUNT OF ANY GRANTS OR CAPITAL CONTRIBUTIONS
    11  WHICH HAVE FINANCED SUCH FACILITIES. THE CAPACITY PART OF THE
    12  TAPPING FEE PER UNIT OF CAPACITY REQUIRED BY THE NEW CUSTOMER
    13  SHALL NOT EXCEED THE COST OF THE FACILITIES AS DESCRIBED HEREIN
    14  DIVIDED BY THE DESIGN CAPACITY OF THE FACILITIES. NOTHING
    15  CONTAINED HEREIN SHALL PREVENT AN AUTHORITY FROM ALLOCATION OF
    16  ITS CAPACITY RELATED FACILITIES TO DIFFERENT SECTIONS OR
    17  DISTRICTS OF ITS SYSTEM, NOR SHALL AN AUTHORITY BE PROHIBITED
    18  FROM IMPOSING ADDITIONAL CAPACITY RELATED TAPPING FEES ON
    19  SPECIFIC GROUPS OF EXISTING CUSTOMERS SUCH AS COMMERCIAL AND
    20  INDUSTRIAL CUSTOMERS, IN CONJUNCTION WITH ADDITIONAL CAPACITY
    21  REQUIREMENTS OF SUCH CUSTOMERS.
    22     (B)  DISTRIBUTION OR COLLECTION PART.  A FEE WHICH MAY NOT
    23  EXCEED AN AMOUNT BASED UPON THE COST OF DISTRIBUTION OR
    24  COLLECTION FACILITIES REQUIRED TO PROVIDE SERVICE, SUCH AS
    25  MAINS, HYDRANTS AND PUMPING STATIONS. SUCH FACILITIES MAY
    26  INCLUDE THOSE THAT PROVIDE EXISTING SERVICE AND/OR THOSE THAT
    27  WILL PROVIDE FUTURE SERVICE. THE COST OF EXISTING FACILITIES,
    28  WHICH SHALL NOT INCLUDE FACILITIES CONTRIBUTED TO THE AUTHORITY
    29  BY ANY PERSON, GOVERNMENT OR AGENCY, SHALL BE BASED UPON THEIR
    30  REPLACEMENT COST OR UPON HISTORICAL COST TRENDED TO CURRENT COST
    19890H0444B3941                 - 16 -

     1  USING PUBLISHED COST INDEXES OR UPON THE HISTORICAL COST PLUS
     2  INTEREST AND OTHER FINANCING FEES PAID ON BONDS FINANCING SUCH
     3  FACILITIES. IN THE CASE OF EXISTING FACILITIES, OUTSTANDING DEBT
     4  RELATED TO THE FACILITIES SHALL BE SUBTRACTED FROM THE COST,
     5  PROVIDED HOWEVER, NO DEBT SHALL BE SUBTRACTED WHICH IS
     6  ATTRIBUTABLE TO FACILITIES EXCLUSIVELY SERVING NEW CUSTOMERS. IN
     7  THE CASE OF FACILITIES TO BE CONSTRUCTED OR ACQUIRED, THE COST
     8  OF SUCH FACILITIES SHALL NOT EXCEED THEIR REASONABLE ESTIMATED
     9  COST. UNDER ALL COST APPROACHES, THE COST OF SAID FACILITIES
    10  SHALL BE REDUCED BY THE AMOUNT OF ANY GRANTS OR CAPITAL
    11  CONTRIBUTIONS WHICH HAVE FINANCED SUCH FACILITIES. THE
    12  DISTRIBUTION OR COLLECTION PART OF THE TAPPING FEE PER UNIT OF
    13  CAPACITY REQUIRED BY THE NEW CUSTOMER SHALL NOT EXCEED THE COST
    14  OF THE FACILITIES AS DESCRIBED HEREIN DIVIDED BY THE DESIGN
    15  CAPACITY OF THE FACILITIES. NOTHING CONTAINED HEREIN SHALL
    16  PREVENT AN AUTHORITY FROM ALLOCATION OF ITS DISTRIBUTION OR
    17  COLLECTION RELATED FACILITIES TO DIFFERENT SECTIONS OR DISTRICTS
    18  OF ITS SYSTEM, NOR SHALL AN AUTHORITY BE PROHIBITED FROM
    19  IMPOSING ADDITIONAL DISTRIBUTION OR COLLECTION RELATED TAPPING
    20  FEES ON SPECIFIC GROUPS OF EXISTING CUSTOMERS SUCH AS COMMERCIAL
    21  AND INDUSTRIAL CUSTOMERS, IN CONJUNCTION WITH ADDITIONAL
    22  CAPACITY REQUIREMENTS OF SUCH CUSTOMERS.
    23     (C)  SPECIAL PURPOSE PART.  FEES FOR SPECIAL PURPOSE
    24  FACILITIES APPLICABLE ONLY TO A PARTICULAR GROUP OF CUSTOMERS,
    25  OR SERVING A PARTICULAR PURPOSE AND/OR SERVING A SPECIFIC AREA,
    26  BASED UPON THE COST OF SUCH FACILITIES, INCLUDING, BUT NOT
    27  LIMITED TO, BOOSTER PUMP STATIONS, FIRE SERVICE FACILITIES AND
    28  INDUSTRIAL WASTEWATER TREATMENT FACILITIES. SUCH FACILITIES MAY
    29  INCLUDE THOSE THAT PROVIDE EXISTING SERVICE AND/OR THOSE THAT
    30  WILL PROVIDE FUTURE SERVICE. THE COST OF EXISTING FACILITIES,
    19890H0444B3941                 - 17 -

     1  WHICH SHALL NOT INCLUDE FACILITIES CONTRIBUTED TO THE AUTHORITY
     2  BY ANY PERSON, GOVERNMENT OR AGENCY, SHALL BE BASED UPON THEIR
     3  REPLACEMENT COST OR UPON HISTORICAL COST TRENDED TO CURRENT COST
     4  USING PUBLISHED COST INDEXES OR UPON THE HISTORICAL COST PLUS
     5  INTEREST AND OTHER FINANCING FEES PAID ON BONDS FINANCING SUCH
     6  FACILITIES. IN THE CASE OF EXISTING FACILITIES, OUTSTANDING DEBT
     7  RELATED TO THE FACILITIES SHALL BE SUBTRACTED FROM THE COST,
     8  PROVIDED HOWEVER, THAT NO DEBT SHALL BE SUBTRACTED WHICH IS
     9  ATTRIBUTABLE TO FACILITIES EXCLUSIVELY SERVING NEW CUSTOMERS. IN
    10  THE CASE OF FACILITIES TO BE CONSTRUCTED OR ACQUIRED, THE COST
    11  OF SUCH FACILITIES SHALL NOT EXCEED THEIR REASONABLE ESTIMATED
    12  COST. UNDER ALL COST APPROACHES, THE COST OF SAID FACILITIES
    13  SHALL BE REDUCED BY THE AMOUNT OF ANY GRANTS OR CAPITAL
    14  CONTRIBUTIONS WHICH HAVE FINANCED SUCH FACILITIES. THE SPECIAL
    15  PURPOSE PART OF THE TAPPING FEE PER UNIT OF CAPACITY REQUIRED BY
    16  THE NEW CUSTOMER SHALL NOT EXCEED THE COST OF THE FACILITIES AS
    17  DESCRIBED HEREIN DIVIDED BY THE DESIGN CAPACITY OF THE
    18  FACILITIES. NOTHING CONTAINED HEREIN SHALL PREVENT AN AUTHORITY
    19  FROM ALLOCATION OF ITS SPECIAL PURPOSE RELATED FACILITIES TO
    20  DIFFERENT SECTIONS OR DISTRICTS OF ITS SYSTEM, NOR SHALL AN
    21  AUTHORITY BE PROHIBITED FROM IMPOSING ADDITIONAL SPECIAL PURPOSE
    22  RELATED TAPPING FEES ON SPECIFIC GROUPS OF EXISTING CUSTOMERS
    23  SUCH AS COMMERCIAL AND INDUSTRIAL CUSTOMERS, IN CONJUNCTION WITH
    24  ADDITIONAL CAPACITY REQUIREMENTS OF SUCH CUSTOMERS.
    25     (D)  REIMBURSEMENT COMPONENT.  AN AMOUNT NECESSARY TO
    26  RECAPTURE THE ALLOCABLE PORTION OF FACILITIES IN ORDER TO
    27  REIMBURSE THE PROPERTY OWNER OR OWNERS AT WHOSE EXPENSE SUCH
    28  FACILITIES WERE CONSTRUCTED, AS SET FORTH IN CLAUSES (Z) AND
    29  (Z.1) HEREOF.
    30     (E)  CALCULATION OF TAPPING FEE COMPONENTS.  (I)  IN ARRIVING
    19890H0444B3941                 - 18 -

     1  AT THE COST TO BE INCLUDED IN THE TAPPING FEE COMPONENTS, THE
     2  SAME COST SHALL NOT BE INCLUDED IN MORE THAN ONE PART OF THE
     3  TAPPING FEE.
     4     (II)  NO TAPPING FEE MAY BE BASED UPON OR INCLUDE THE COST OF
     5  EXPANDING, REPLACING, UPDATING OR UPGRADING FACILITIES SERVING
     6  EXISTING CUSTOMERS IN ORDER TO MEET STRICTER EFFICIENCY,
     7  ENVIRONMENTAL, REGULATORY OR SAFETY STANDARDS OR TO PROVIDE
     8  BETTER SERVICE TO, OR MEET THE NEEDS OF, EXISTING CUSTOMERS.
     9     (III)  THE COST USED IN CALCULATING TAPPING FEES SHALL NOT
    10  INCLUDE MAINTENANCE AND OPERATION EXPENSES. AS USED IN THIS
    11  CLAUSE, "MAINTENANCE AND OPERATION 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     (2)  EVERY AUTHORITY CHANGING A TAPPING, CUSTOMER FACILITIES
    18  OR CONNECTION FEE SHALL DO SO AT A PUBLIC MEETING OF THE
    19  AUTHORITY. THE AUTHORITY SHALL HAVE AVAILABLE FOR PUBLIC
    20  INSPECTION A DETAILED ITEMIZATION OF ALL CALCULATIONS CLEARLY
    21  SHOWING THE MANNER IN WHICH THE FEES WERE DETERMINED. A REVISED
    22  TAPPING, CUSTOMER FACILITIES OR CONNECTION FEE MAY BE IMPOSED
    23  UPON THOSE WHO SUBSEQUENTLY CONNECT TO THE SYSTEM.
    24     (3)  NO AUTHORITY SHALL HAVE THE POWER TO IMPOSE ANY
    25  CONNECTION FEE, CUSTOMER FACILITIES FEE, TAPPING FEE OR ANY
    26  SIMILAR FEE EXCEPT AS PROVIDED SPECIFICALLY IN THIS SECTION.
    27     * * *
    28     (Y)  WHERE A SEWER OR WATER SYSTEM OF AN AUTHORITY IS TO BE
    29  EXTENDED AT THE EXPENSE OF THE OWNER OR OWNERS OF PROPERTIES OR
    30  WHERE THE AUTHORITY OTHERWISE WOULD CONSTRUCT THE CUSTOMER
    19890H0444B3941                 - 19 -

     1  FACILITIES REFERRED TO IN SECTION 4(B)(T)(II) (OTHER THAN WATER-
     2  METER INSTALLATION), THE PROPERTY OWNER OR OWNERS SHALL HAVE THE
     3  RIGHT TO CONSTRUCT THE EXTENSION OR INSTALL THE CUSTOMER
     4  FACILITIES HIMSELF OR THEMSELVES OR THROUGH A SUBCONTRACTOR
     5  APPROVED BY THE AUTHORITY, WHICH APPROVAL SHALL NOT BE
     6  UNREASONABLY WITHHELD: PROVIDED THAT THE AUTHORITY SHALL HAVE
     7  THE RIGHT, AT ITS OPTION, TO PERFORM THE CONSTRUCTION ITSELF
     8  ONLY IF THE AUTHORITY PROVIDES THE EXTENSION OR CUSTOMER
     9  FACILITIES AT A LOWER COST AND WITHIN THE SAME TIMETABLE
    10  SPECIFIED OR PROPOSED BY THE PROPERTY OWNER OR OWNERS OR HIS OR
    11  THEIR APPROVED SUBCONTRACTOR. CONSTRUCTION BY THE PROPERTY OWNER
    12  OR OWNERS SHALL BE IN ACCORDANCE WITH AN AGREEMENT FOR THE
    13  EXTENSION OF THE AUTHORITY'S SYSTEM AND PLANS AND SPECIFICATIONS
    14  APPROVED BY THE AUTHORITY AND SHALL BE UNDERTAKEN ONLY PURSUANT
    15  TO THE EXISTING REGULATIONS, REQUIREMENTS, RULES AND STANDARDS
    16  OF THE AUTHORITY APPLICABLE TO SUCH CONSTRUCTION AND SHALL BE
    17  FURTHER SUBJECT TO INSPECTION BY AN INSPECTOR AUTHORIZED TO
    18  APPROVE SUCH CONSTRUCTION AND EMPLOYED BY THE AUTHORITY DURING
    19  CONSTRUCTION. WHEN A MAIN IS TO BE EXTENDED AT THE EXPENSE OF
    20  THE OWNER OR OWNERS OF PROPERTIES, THE PROPERTY OWNER OR OWNERS
    21  MAY BE REQUIRED TO DEPOSIT WITH THE AUTHORITY, IN ADVANCE OF
    22  CONSTRUCTION, THE AUTHORITY'S ESTIMATED REASONABLE AND NECESSARY
    23  COST OF REVIEWING PLANS, CONSTRUCTION, INSPECTIONS,
    24  ADMINISTRATIVE, LEGAL AND ENGINEERING SERVICES. THE AUTHORITY
    25  MAY REQUIRE THAT CONSTRUCTION SHALL NOT COMMENCE UNTIL THE
    26  PROPERTY OWNER HAS POSTED APPROPRIATE FINANCIAL SECURITY IN
    27  ACCORDANCE WITH SUBSECTION B.(S.1) OF THIS ACT. THE AUTHORITY
    28  MAY PRESCRIBE THAT THE PROPERTY OWNER OR OWNERS SHALL REIMBURSE
    29  THE AUTHORITY FOR REASONABLE AND NECESSARY EXPENSES INCURRED AS
    30  A RESULT OF THE EXTENSION. IF AN INDEPENDENT FIRM IS EMPLOYED
    19890H0444B3941                 - 20 -

     1  FOR ENGINEERING REVIEW OF THE PLANS AND THE INSPECTION OF
     2  IMPROVEMENTS, REIMBURSEMENT FOR SUCH SERVICES SHALL BE
     3  REASONABLE AND IN ACCORDANCE WITH THE ORDINARY AND CUSTOMARY
     4  FEES CHARGED BY THE INDEPENDENT FIRM FOR WORK PERFORMED FOR
     5  SIMILAR SERVICES IN THE COMMUNITY, BUT IN NO EVENT SHALL THE
     6  FEES EXCEED THE RATE OR COST CHARGED BY THE INDEPENDENT FIRM TO
     7  THE AUTHORITY WHEN FEES ARE NOT REIMBURSED OR OTHERWISE IMPOSED
     8  ON APPLICANTS. UPON COMPLETION OF CONSTRUCTION, THE PROPERTY
     9  OWNER OR OWNERS SHALL DEDICATE, AND THE AUTHORITY SHALL ACCEPT,
    10  THE EXTENSION OF THE AUTHORITY'S SYSTEM, PROVIDED DEDICATION OF
    11  FACILITIES AND THE INSTALLATION COMPLIES WITH THE PLANS,
    12  SPECIFICATION, REGULATIONS OF THE AUTHORITY AND THE AGREEMENT.
    13  AN AUTHORITY MAY PROVIDE IN ITS REGULATIONS THOSE FACILITIES
    14  WHICH, HAVING BEEN CONSTRUCTED AT THE EXPENSE OF THE OWNER OR
    15  OWNERS OF PROPERTIES, THE AUTHORITY WILL ACCEPT AS A PART OF ITS
    16  SYSTEM.
    17     (Z)  WHERE A PROPERTY OWNER CONSTRUCTS OR CAUSES TO BE
    18  CONSTRUCTED AT HIS EXPENSE ANY EXTENSION OF A SEWER OR WATER
    19  SYSTEM OF AN AUTHORITY, THE AUTHORITY SHALL PROVIDE FOR THE
    20  REIMBURSEMENT TO THE PROPERTY OWNER WHEN THE OWNER OF ANOTHER
    21  PROPERTY NOT IN THE DEVELOPMENT FOR WHICH THE EXTENSION WAS
    22  CONSTRUCTED, CONNECTS A SERVICE LINE DIRECTLY TO THE EXTENSION
    23  WITHIN TEN YEARS OF THE DATE OF THE DEDICATION OF SUCH EXTENSION
    24  TO THE AUTHORITY IN ACCORDANCE WITH THE FOLLOWING PROVISIONS:
    25     (1)  SUCH REIMBURSEMENT SHALL BE EQUAL TO THE DISTRIBUTION OR
    26  COLLECTION PART OF EACH TAPPING FEE COLLECTED AS A RESULT OF
    27  SUBSEQUENT CONNECTIONS. AN AUTHORITY SHALL BE ENTITLED TO DEDUCT
    28  FROM EACH REIMBURSEMENT PAYMENT AN AMOUNT EQUAL TO FIVE PER
    29  CENTUM WHICH SHALL BE DEEMED TO REPRESENT THE APPROPRIATE CHARGE
    30  FOR ADMINISTRATIVE EXPENSES AND SERVICES RENDERED IN
    19890H0444B3941                 - 21 -

     1  CALCULATING, COLLECTING, MONITORING AND DISBURSING THE
     2  REIMBURSEMENT PAYMENTS TO THE PROPERTY OWNER ENTITLED THERETO.
     3     (2)  REIMBURSEMENT SHALL BE LIMITED TO THOSE LINES WHICH HAVE
     4  NOT PREVIOUSLY BEEN PAID FOR BY THE AUTHORITY.
     5     (3)  THE AUTHORITY SHALL, IN THE PREPARATION OF THE NECESSARY
     6  REIMBURSEMENT AGREEMENT WITH THE PROPERTY OWNER OR OWNERS FOR
     7  WHOSE BENEFIT REIMBURSEMENT WILL BE PROVIDED, ATTACH AS AN
     8  EXHIBIT AN ITEMIZED LISTING OF ALL SEWER AND WATER FACILITIES
     9  FOR WHICH REIMBURSEMENT SHALL BE PROVIDED.
    10     (4)  THE TOTAL REIMBURSEMENT TO WHICH A PROPERTY OWNER OR
    11  OWNERS SHALL BE ENTITLED SHALL NOT EXCEED THE COST OF ALL LABOR
    12  AND MATERIAL, ENGINEERING DESIGN CHARGES, THE COST OF
    13  PERFORMANCE AND MAINTENANCE BONDS, AUTHORITY REVIEW AND
    14  INSPECTION CHARGES, AS WELL AS FLUSHING AND TELEVISING CHARGES
    15  AND ANY AND ALL CHARGES INVOLVED IN THE ACCEPTANCE AND
    16  DEDICATION OF SUCH FACILITIES BY THE AUTHORITY, LESS THE AMOUNT
    17  WHICH WOULD BE CHARGEABLE TO SUCH PROPERTY OWNER BASED UPON THE
    18  AUTHORITY'S COLLECTION AND DISTRIBUTION TAPPING FEES WHICH WOULD
    19  BE APPLICABLE TO ALL LANDS OF THE PROPERTY OWNER SERVED DIRECTLY
    20  OR INDIRECTLY THROUGH SUCH EXTENSIONS IF THE PROPERTY OWNER DID
    21  NOT FUND THE EXTENSION.
    22     (5)  AN AUTHORITY SHALL BE REQUIRED TO NOTIFY BY CERTIFIED
    23  MAIL, TO THEIR LAST KNOWN ADDRESS, THE PROPERTY OWNER OR OWNERS
    24  FOR WHOSE BENEFIT SUCH REIMBURSEMENT SHALL APPLY WITHIN THIRTY
    25  DAYS OF THE AUTHORITY'S RECEIPT OF ANY SUCH REIMBURSEMENT
    26  PAYMENT. IN THE EVENT THAT THE PROPERTY OWNER OR OWNERS HAVE NOT
    27  CLAIMED A REIMBURSEMENT PAYMENT WITHIN ONE HUNDRED TWENTY DAYS
    28  OF THE MAILING OF THE NOTICE, THE PAYMENT SHALL REVERT TO AND
    29  BECOME THE SOLE PROPERTY OF THE AUTHORITY WITH NO FURTHER
    30  OBLIGATION ON THE PART OF THE AUTHORITY TO REFUND THE PAYMENT TO
    19890H0444B3941                 - 22 -

     1  THE PROPERTY OWNER OR OWNERS.
     2     (Z.1)  WHENEVER A SEWER SYSTEM OR WATER SYSTEM OR ANY PART OR
     3  EXTENSION THEREOF OWNED BY AN AUTHORITY HAS BEEN CONSTRUCTED BY
     4  THE AUTHORITY AT THE EXPENSE OF A PRIVATE PERSON OR CORPORATION
     5  OR HAS BEEN CONSTRUCTED BY A PRIVATE PERSON OR CORPORATION UNDER
     6  THE SUPERVISION OF THE AUTHORITY AT THE EXPENSE OF THE PRIVATE
     7  PERSON OR CORPORATION, THE AUTHORITY SHALL HAVE THE RIGHT TO
     8  CHARGE A TAPPING FEE AND REFUND SAID TAPPING FEE OR ANY PART
     9  THEREOF TO THE PERSON OR CORPORATION WHO HAS PAID FOR THE
    10  CONSTRUCTION OF SAID SEWER OR WATER SYSTEM OR ANY PART OR
    11  EXTENSION THEREOF.
    12     SECTION 2.  NOTWITHSTANDING SECTION 4 OF THIS ACT, THIS ACT
    13  SHALL APPLY IMMEDIATELY TO ANY CONNECTION, CUSTOMER FACILITIES,
    14  TAPPING OR SIMILAR FEES WHICH ARE INCREASED OR INITIALLY IMPOSED
    15  SUBSEQUENT TO THE DATE OF FINAL ENACTMENT.
    16     SECTION 3.  THIS ACT SHALL NOT AFFECT ANY EXISTING AGREEMENT
    17  WHICH RELATES TO THE SUBJECT MATTER OF THIS ACT. THE PROVISIONS
    18  OF SECTION 4 B.(Z) OF THE ACT SHALL BE APPLICABLE TO ANY
    19  AGREEMENT FOR EXTENSION OF A SEWER OR WATER SYSTEM OF AN
    20  AUTHORITY ENTERED INTO AFTER THE EFFECTIVE DATE OF THIS ACT.
    21     SECTION 4.  THIS ACT SHALL TAKE EFFECT IN 180 DAYS.






    A30L64MRD/19890H0444B3941       - 23 -