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21.08.020 Distribution Main Extensions Inside City; Cost Sharing.

(Amended by Ordinance Nos. 181715 and 182053, effective August 15, 2008.)

A.   Except for purposes of improving an inadequate main as provided in Section 21.08.060 or if the Portland Water Bureau shares costs as provided herein, an applicant for a new or improved main shall pay the full costs of the new or improved main.

B.   The Administrator of the Portland Water Bureau shall adopt by rule a methodology of cost sharing with applicants for the installation of new or improved water mains, main extensions, and fire hydrants installed by the Portland Water Bureau in the public right of way when the total cost of the project required for the applicant does not exceed $125,000. In no case shall the Portland Water Bureau's share of these costs exceed 50% of the total cost of a project, or a maximum share of $62,500, whichever is less. In developing the cost sharing methodology, the Administrator shall consider the following criteria:

1.   Public and private benefit derived from proposed privately financed water system improvements

2.   Rate impacts

3.   Availability of Portland Water Bureau budgetary funds

C.   Notwithstanding and in lieu of the cost sharing authorized by Section 21.08.020 B., if an applicant's request for a single new residential service of 1 inch or smaller is not granted due to inadequate capacity of a 4 inch main or smaller, the provisions of Section 21.08.060 shall apply to establish allocation of costs.

D.   At the discretion of the Chief Engineer, the cost of the project or components of the project shall be offered to the applicant at either a set price or time and materials basis. The Portland Water Bureau shall accept a deposit of 20% of the estimated cost for preliminary engineering work, the balance due prior to actual construction. For projects accepted by the applicant on a time and materials basis, if the actual cost of the main or main extension and the laying thereof is greater than the estimated cost, the applicant shall pay the difference to the Portland Water Bureau. Payment shall be deposited to the Water Operating Fund and transferred to the Water Construction Fund. If the actual cost is less than the estimated cost, the excess shall be refunded to the applicant. In determining actual costs, allowance shall be made for overhead expenses in accordance with the provisions of the City Code and the Annual Water Rate Ordinance. Determination of the amount to be paid or refunded after construction of the main shall be made by the Administrator, subject to appeal to the City Council, and the decision of the Council shall be final.

E.   In no case after a set price has been established shall refunds or additional charges for the installation be made except in those cases where changes have been made at the request of the applicant.

F.   In all cases the size of mains and main extensions and the specifications for laying the same shall be determined by the Chief Engineer, and water mains and main extensions within the City shall be installed solely by the City, except as otherwise provided herein and shall be the property of the City.

G.   The developer of a new residential subdivision within the City may petition the Chief Engineer for permission to construct water mains and appurtenances within the limits of the subdivision. Water mains may also be installed in private streets subject to prior approval of the Chief Engineer and subject to all conditions contained in this Title. However, the costs of all such mains and appurtenances in subdivisions and private streets shall be borne by the applicant, including but not limited to planning, design, plan review, construction, inspection and project management, and may not request cost sharing provided in Section 21.08.020 for the mains and appurtenances. Any water mains or appurtenances that are placed in public rights of way shall become the property of the Portland Water Bureau. The Portland Water Bureau shall connect the privately constructed water facilities to the public main. Costs of connection shall be borne by the applicant unless the connection cost is less than $125,000, in which case the costs shall be shared under standards developed pursuant to Section 21.08.020 A.

H.  The Administrator may adopt administrative rules and procedures necessary to carry out the provisions of this chapter.

I.   The effective date of this Chapter is July 1, 2007. The provisions of Section 21.08.020 shall be applied retroactively to projects which did not include a city cost share and were accepted and paid for by the applicant after June 30, 2007.

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