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HomeMy WebLinkAboutRES NO 93-82RESOLUTION NO. g3-82 RESOLUTION OF THE CITY COUNCIL APPROVING AGREEMENT-F-OR WATER FACILITY INSTALLATION AND AUTHORIZING EXECUTION THEREOF WHEREAS, the CITY COUNCIL of the CITY OF BAKERSFIELD, CALIFORNIA, has previously instituted proceedings pursuant to the provisions of the !'Municipal Improvement Act of-1913", being Division 12 of the Streets and Highways Code of the State of California, for the construction of certain public works of improvement, includ- ing certain water facilities, together with appurtenances, in a special assess- ment district known and designated as ASSESSMENT DISTRICT NO. 81-1 (hereinafter referred to as the "Assessment District"); and, WHEREAS,_.the improvements proposed to be constructed and financed as a part of the Assessment District also include certain water facilities, which will be owned, managed, controlled and maintained by the California Water Service Company, a regulated public utility in the State of California; and, WHEREAS, Section lOllO of the Streets and Highways Code of the State of Califor- nia expressly provides that where any facility is to be owned, managed, main- tained or controlled by some public agency or utility other than the public agency conducting the proceedings, a contract shall be approved and executed prior to ordering the work, setting forth the terms and conditions for the con- struction, installation and/or financing of said facilities; and, WHEREAS, at this time, an agreement has been prepared and submitted relating to said water facility, and said agreement is in proper form and ready for approval by this City Council. NOW, THEREFORE, IT IS HEREBY RESOLVED AS FOLLOWS: SECTION 1. That the above'recitals are all true and correct. SECTION 2. That that certain agreement entitled "AGREEMENT FOR THE INSTALLA- TION, CONVEYANCE, MAINTENANCE AND OPERATION OF A SYSTEM OF WATER SUPPLY", relating to the financing of certain water facilities to be owned and managed by the California Water Service Company, is hereby approved by this City Council, and execution is hereby authorized to be made. SECTION 3. A copy of said agreement shall be kept on file in the Office of the City Clerk, and an executed copy shall immediately be transmitted to the office of the California Water Service Company. SECTION 4. That this agreement may, at any time during the term of the bonds to be issued under these proceedings, be subject to public sale by this City, said sale procedure to be acceptable and subject to approval of the City Attorney. Any proceeds received from the sale of said agreement shall immediately be applied aS credits to the benefit of properties within the boundaries of the Assessment District, said credit to be applied in the manner and form as specified and autho- rized by Section 10427.1 of the Streets and Highways Code of the State of California. I hereby certify' that the foregoing Resolution was passed and adopted by the Council of the City of Bakersfield at a regulasr meeting held on the 18th day . of August , 1982, by the following vote: APPROVED th~-~Oth~ ,d. ay_of~_~~ ugus( !'? , MAYOR OF TH ~-. ~ BAKERSFIELD CITY X ER OF COUNCIL OF THE CIT~ OF BAKERSFIELD THE AGREEMENT NO. 82-147 AGREEMENT FOR THE INSTALLATION, "CONVEYANCE, MAINTENANCE AND OPERATION OF A SYSTEM OF WATER SUPPLY THIS AGREEMENT, made and entered into this 18thdaY of August , 1982, by and between the CITY OF BAKERSFIELD, a municipal corporation of the State of California, hereinafter called "City", CALIFORNIA WATER SERVICE COMPANY, a California public utility water corporation, hereinafter called "Utility", and BARRATT NORTHERN CALIFORNIA, INC., hereinafter called "Owner". W I TN E S S E TH: WHEREAS, Owner is an owner of property within the proposed boundaries of a special _assessment district known and designated as Assessment District No. 81-1, hereinafter called the "Assessment District", situated in the City of Bakersfield, County of Kern, State of California, said boundaries being outlined in red and shown on a map attached hereto a.s Exhibit "A", which property Owner proposes to develop; and, WHEREAS, the City Council of the City, pursuant to the provisions of the "Municipal Improvement Act of 1913" ("1913 Act"), being Division 12 of the Streets and Highways Code of the State of California, has initiated proceedings for the formation of the Assessment District, to acquire and construct certain improvements within the boundaries of the Assessment District including, among o'ther things, the facilities as shown on Exhibit "B" hereto, which has been approved by the Engineer of Work of said Assessment District; and, WHEREAS, said water facilities as set forth in the Exhibit "B", are inte- gral and necessary and shall be included within .the costs and expenses of the above-referenced Assessment District; and, WHEREAS, under the provisions of Sections lOl09 and lOllO of the Streets and Highways Code of the State of California, City is authorized to enter into an agreement with Utility to provide for the construction by Utility of the facilities, and to pay Utility out of the improvement fund of the Assessment District; and, WHEREAS, under Section lOll l, title to the improvements so installed shall vest in Utility and constitute a part of its system and shall at all times thereafter be used, operated and maintained by it as a part of such system; and, WHEREAS, said water facilities consist of-mains and appurtenances (herein- after referred to as "Facilities") required to furnish water service to the pro- perty within a portion of the District, fronting on Fairview Road as more'parti- cularly shown on Exhibit "B" hereto; and, WHER_EAS, upon compliance by City with the applicable requirements of the laws of the State of California and upon the terms and conditions herein set forth, the Utility is willing to construct the Facilities and to furnish water service through and by means of the Facilities at the rates and in accordance with the rules of Utility now in force in its Bakersfield District. NOW, THEREFORE, for and in consideration of the premises and of the mutual covenants, agreements, terms and provisions herein contained, it is agreed as follows, to-wit: 1. Initial Deposit. In order to expedite the proceedings and to initiate the construction of the Facilities shown on Exhibit "B" prior to the sale of bonds, Owner has advanced the sum of $40,433.00 (the estimated cost), receipt of which is hereby acknowledged, representing Utility's estimated cost of install- ing the Facilities and connecting the same to Utility's existing mains. Upon a successful sale of bonds, the City shall then pay to Utility the cost and expenses of the Facilities pursuant to the terms of this agreement, and at that time Utility will reimburse Owner for any monies advanced. -2- 2. Installation of Facilities. Utility agrees that it will, as soon as necessary materials and labor are available, and necessary permits, franchises, licenses or other governmental authorizations have been obtained, commence and prosecute to completion with all reasonable diligence the work of installing the Facilities. Utility reserves the right to make such changes in design or material as it may deem necessary. Within sixty (30) days after Utility has ascertained separately its actual costs in installing the Facilities, it will provide City with a statement of the same showing in reasonable detail the costs incurred for material, labor and other direct and indirect costs, overheads and total costs, or unit costs or contract costs, whichever are appropriate. If such actual construction costs shall not have been determined within one hundred twenty (120) days after completion of construction work, a preliminary determina- tion of actual costs shall be submitted, based upon the best available informa- tion at that time. If such actual costs as finally determined shall be greater or less than the Estimated Cost, the difference shall be advanced by Owner to Utility or repaid by Utility to Owner, as the case may be, and the Estimated Cost adjusted accordingly. The Estimated Cost as so adjusted shall be the Amount Subject to Refund. 3. Engineering and Street Grades. Owner agrees to set or cause to be set stakes on the applicable street and lot boundaries in the Assessment District and to provide Utility or cause Utility to be provided with finished street grades and typical cross-sections to enable Utility to determine a location for the mains and the depth to which they are to be laid. Utility will determine the locations and depths of the mains in relation to the data furnished or caused to be furnished by Owner. Installation of the mains will not be commenced by Utility until street grades have been brought to those established by public -3- authority. In the event Utility incurs any cost or expense in relocating, raising or lowering the Facilities .by reason of inaccuracy of Owner in performance of its obligations under this paragraph, Utility shall give written notice to Owner of such actual cost or expense within ten (10) days after Utility has ascertained the same, and Owner agrees to pay Utility promptly the amount thereof, which shall not be subject to refund by Utili.ty hereunder. 4. Owner's Agreements. (a) Owner agrees to use its best efforts to assist Utility to obtain any and all permits, franchises or other gover-nmental authorizations which may be required for the installation of the Facilities. (b) Owner and City agree that service from the Facilities installed hereunder is limited to the properties fronting on Fairview Road, as shown on Exhibit "B", and in no way does this agreement constitute a commitment by Utility to serve the entire-Assessment District shown on Exhibit "A" hereto. (c) Owner agrees to comply with applicable provisions of local building codes and/or ordinances relating to (i) interior plumbing requirements in new buildings covering toilets, shower heads, and kitchen and lavatory faucets, as set forth in Section A.4.e.1. of the Rule, a copy of which is attached as Exhibit "C" hereto, and (ii) design and operation of automatic irrigation systems in parks, median strips, landscaped public areas and landscaped areas surrounding condomi- niums, townhouses, apartments and A.4.e.2. of the Rule. 5. Operation of Facilities. industrial parks, as set forth in Section Utility agrees, upon completion of the Facili- ties and compliance by Owner with the terms of this agreement, that Utility will operate and maintain the Facilities and wi|l provide water service to Owner in accordance with all valid laws, regulations and ordinances and at the rates and in -4- accordance with the rules of Utility now in force in its Bakersfield District or that may from time to time hereafter lawfully be in force in said Bakersfield District. 6. Ownership. All Facilities to be installed hereunder by Utility shall be and remain at all times the sole property of Utility. 7. Construction Delay. Utility shall not be responsible for any delay in work to be accomplished by it hereunder resulting from any cause beyond its control, including, without limiting the generality of the foregoing, any delay resulting from inability to obtain sufficient proper materials and supplies, labor di_sturbances or shortages or weather conditions or inability to obtain necessary permits, licenses or other governmental authorizations. In the event Utility is unable to obtain sufficient materials to meet all construction re- quirements necessary to provide adequate service to all its customers, it shall be entitled to allocate materials obtained by it to such construction projects aS in its sole discretion it deems most important to service needs of its customers, and any delay in completion of the work to be completed by Utility hereunder re- sulting from any such allocation of materials by Utility shall be deemed to be a cause beyond its control and it shall not be responsible for such delay. 8. Refund. Utility agrees to make annual refunds to City as hereinafter set forth. The Amount Subject to Refund shall be subject to refund'by Utility in cash, without interest, to City for a period not to exceed Forty (40) years from the date hereof, commencing not later than six (6) months after the first anni- versary date hereto. Each such annual refund shall equal Two and One-Half (2-1/2%) percent of City's Advance Subject to Refund. If any portion of City's Advance Subject to Refund shall not have been refunded upon termination of said forty year period, .Utility shall refund said portion to City with the last refund -5- payment hereunder. The total amount refunded shall not exceed City's Advance Subject to Refund, without interest. Refunds made under the provisions of this Paragraph will be received by City as trustee for, and distribution to, the owner of the applicable properties in the Assessment District assessed therefor in proportion to the amounts assessed against the various parcels for said water system improvements. No main extension refund agreement shall be entered into with any landowner or developer of any property in the Assessment District with respect to the Facilities or any part thereof. 9. Utility's Right to Offset. In the event City shall become entitled to a refund under the provisions of this agreement, Utility shall have the right at such time to offset against the amount then due City hereunder the total amount of any indebtedness then due or owing to Utility under the provisions of this agreement. Without in any way limiting the generality of the preceding sentence, Utility shall have the right to offset against any refunds becoming due City hereunder all costs hereafter incurred by Utility in relocating, raising or lowering the Facilities, or any part or parts thereof, by reason of any change in grade of any street or streets in the Assessment District. lO. Notices. Any notice which it is herein provided may or shall be given by either party hereto to the other shall be deemed to have been duly given when deposited in the Unite~l States mail, registered or certified, postage prepaid and addressed to the person to whom such notice is given at the following respective addresses: To City: To Owner: City of Bakersfield 1501 Truxtun Avenue Bakersfield, California 93301 Barratt Northern California, Inc. 5955 DeSoto Avenue, #200 Woodland Hills, California 91365 -6- To Utility: California Water Service Company 1720 North First Street Post Office Box 1150 San Jose, California 95108 Any party,. by notice given as hereinbefore provided, may change the address to which notice shall thereafter be addressed to it. ll. Assignment. City may assign this agreement upon written notice to Utility after determination of the Amount Subject to Refund. Any such assignment shall apply only to those refunds hereunder which become due more than thirty (30) days after the date of receipt by Utility of such notice of assignment. Utiity will not make any refund payment hereunder to more than one person. 12. Successors and Assigns. Subject to the provisions of the preceding Paragraph ll, this agreement shall inure to the benefit of and shall bind the respective successors and assigns of the parties hereto. 13. Jurisdiction of Public Utilities Commission. This agreement shall at all times be subject to such changes or modifications by the California Public Utilities Commission as said Commission may from time to time direct in the exercise of its jurisdiction. 14. Bonds. Utility shall post with City labor, materials and performance bonds in accordance with the provisions of Chapter 6 (commencing with Section 10500 of Division 12 of said' Streets and Highways Code) for all work to be performed by Util ity hereunder. 15. Effectiveness of Agreement. This agreement shall not become effective until proceedings have been initiated by City pursuant to Division 12 of the Streets and Highways Code and the funds are available to carry out all the terms hereof or as otherwise provided herein. 16. Application of Refunds. Utility shall have no liability to see to the application of any refunds or other sums paid by Utility to City hereunder. -7- 17. Paragraph Headings. Paragraph headings in this agreement are for convenience only and are not to be construed as part of this agreement or in any way limiting or amplifying the provisions hereof. IN WITNESS WHEREOF, the parties hereto have executed this agreement, in tri- plicate, the day and year first above written. ATTEST: PHILIP KELMAR Clerk of the Council COUNTERSIGNED: DALE HAWLEY Public Works Director APPROVED AS TO FORM: RICHARD J. OBERHOLZER City Attorney CITY OF BAKERSFIELD, a municipal corporation By: MARY K. SHELL Mayor BARRATT NORTHERN CALIFORNIA, INC. By: BRUCE G. STRICKLAND Bruce G. Strickland, Vice President By: JOHN H, JOHNSON John H. Johnson, Assistant Secretary CALIFORNIA WATER SERVICE COMPANY By: By: President Assistant Secretary -8- EXH I BIT A - .;" -i EXItBIT "A " L~ I I 0 '1 !1 rl ".1 iI I I I I : I RULE NO. 15 MAIN EXTENSION5 A. General Provisions and D~Finitions ' 1. Applicability a. All extensions of distribution mains, From the utility*s basic production and transmission system or existing distribution system, to serve new customers, except For those specifi- cally excluded below, shall be made under the provisions of this rule unless specific authority is First obtained From the Commission to deviate therefrom. A main extension con- tract shall be executed by the utility and the applicant or applicants For the main exten- sion before the utility commences construction work on said extensions or, if constructed by applicant or applicants, before the Facilities comprising the main extension are trans- Ferred to the utility. b. Extensions primarily For Fire hydrant, priw~te Fire protection, resale, temporary, standby, or supplemental service shall not be made under this rule. c. The utility may, but will not be required to, make extensions under this rule in easements or rights-of-Hay where Final grades have not been established,. or where street grades have not been brought to those established by public authority. IF extensions are made when grades have not been established and there is a reasonable probability that the existing grade will be changed, the utility shall require that the applicant or applicants For the main extension deposit, at the tlme of execution of the main extension agreement, the es(i- mated net cost of relocating, raising or lowering facilities upon establishment of Final grades. Adjustment of any difference between the amount so deposited-and the' actual cost of relocating, raislng or lowering Facilities shall be made within ten days after the'. utility has ascertained such actual cost. The net deposit representing actual cost is not subject to refund. The entire deposit related to the proposed relocation, ralsing or lowering shall be refunded when such displacements are determined by proper authority to be not required. 2. Limitation of Expansion -a. Nhenever the outstanding advance contract balances reach 40 percent of total capit~l (de- Fined,' For the purpose of this rule, as proprietary capital, or capital stock and surplus, plus debt and advances For construction) the utility shall so notify the Commission within thirty days. b. Whenever the outstanding advance contract balances plus the advance on a proposed new exten- sion would exceed 50 percent of total capital, as defined in Section A.2.a. plus the advance on the proposed new extension, the utility shall not make the proposed new extension of distribution mains without authorization of the Commission. Such authorization may be granted by a letter From the Executive Director of the Commission. c. Whenever the outstanding advance contract balances reach the above level, the utility shall so notify the Commission within thirty days. 3. Definitions a. A "bona-fide customer," For the purposes of this rule, shall be a customer (excluding any customer Formerly served at the same location) who has given satisfactory evidence that service w111 be reasonably permanent to the property which has been improved with a building of a permanent nature, and to which service has commenced. The provision of service to a real estate developer or builder, during the construction or development period, shall not establish him as a bona-Fide customer. b. A "real estate developer" or "builder," For the purposes of this rule, shall include any individual, association of individuals, partnership, or corporation that divides a parcel of land into. two or more portions,. or that engages in the construEtion and resale of indi- vidual structur'es on a continulng basis. c. The "adjusted construction cost," for the purposes of this rule, shaZl.be reasonable and shall not exceed the costs recorded in conformity with generally accepted water utility ac- counting practices, and as specifically defined in the Uniform System of Accounts for Water Utilitles prescribed by the Commission for installing facilitie's of adequate capacity for the service requested. If the utility, at its option, should install facilities with a larger capacity or resulting in a greater footage of extension than required for the service requested, the "adjusted construction cost," for the purpose of this rule, shall be deter- mined by the application of an adjustment factor to actual construction cost of facilities installed. This Factor shall be the ratio of estimated cost of required facilities to esti- mated cost of actual facilties installed. ~. Ownership, Design, and Construction of Facilities a. Any Facilities installed hereunder shall be the sole property of the utility. In those instances in which title to certain portions of the installation, such as fire hydrants, will be held by a political subdivision, such Facilities shall not be included as a part of the main extension under this rule, and will neither be owned by the utillty nor subject to refund under the provisions of Section C.2. of this rule. b. The size, type, quallty of materials, and their.location shall be specified by the utility; and the actual construction shall be done by the utility or by a constructing agency accept- able to it. c. Where the property of an applicant is located adjacent' to a right-of-way, exceeding 70 Feet in width, for a street, highway, or other public purpose, regardless of the width of the traveled way or pavement; or on a freeway, waterway, or railroad rlght-oF-way, the utility may elect to install a main extension on the same side thereof as the property of the applicant, and the estimated and adjusted construction costs in such case shall be based upon such an extension. d. When an extension must comply with an ordinance, regulatlon, or specification of a public authority, the estimated and adjusted construction costs of said extension shall be based upon the Facilities required to comply therewith. e. If .the following provisions for water conservation are included in local building codes and/or ordinances, the main extenslon contract shall contain these proylsions. {1) All interior plumbing in new buildings shall meet the following requirements: (a) Toilets shall not use more than 3½ gallons per Flush, except that toilets and urinals with flush valves may be installed. (b) Shower heads shall contain flow controls. which restrict flow to a 'maxlmum of approximately 3 gallons per minute. {c) Kitchen and lavatory faucets shall have Flow controls which restrict flow to'a maximum of approximately 2 gallons per minute. {2} All new parks, median strips, landscaped public areas and landscaped areas surrounding condominiums, townhouses, apartments and industrial parks shall have a well-balanced automatic irrigation system designed by a landscape architect or other competent person, and shall be operated by electric time controller stations set for early morning irrigation. 5. Estimates, Plans, and Specifications a. Upon request by a potential applicant for a main extenslon, the utility shall prepare, with- out charge, a preliminary sketch and rough estimates of the cost of installation to be advanced by said applicant. b. Any applicant for a main extension requesting the utility to prepare detailed plans, specl- fications, and cost estimates shall be required to deposit with the utility an amount equal to the estimated cost of preparation of s. uch material. The utillty shall, upon request, " make available within ~5 days after receipt of the deposit referred to above, such plans, · specifications, and cost estimates of the proposed main extension. If the extension is to include oversizing of facilities to be done at the utility's expense, appropriate details shall be set Forth in the plans, specifications, and cost estimates. c. In the event a main extension contract with the utility is executed within 180 days after the utility furnishes the detailed plans and specifications, the deposit shall become a part of the advance, and shall be refunded in accordance with the terms of the.main extegs~on contract.' IF such contract is not so executed, the deposit to cover the cost of preparing plans, specifications, and cost estimates shall be Forfeited by the applicant f~r the main extension and the amount of the Forfeited deposit shall be credited to the account or ac- counts to which the expense of preparing sald materlal was charged.. d. When detailed plans, specifications, and cost estimates are requested, the appllcant for a main extension shall furnish a map to a suitable scale showing the street and lot layouts and, when requested by the utility, contours or other indication of the relative elevation of the various parts of the area to be developed. IF changes are made subsequent to the presentation of this map by the applicant, and these changes require additional expense in revising plans, specificatlons, and cost estlmates, this additional expense shall be borne by the applicant, not subject to refund, and the additional expense thus recovered shall be credited to the account or accounts to whlch the additlonal expense was charged. 6. Timing and Adjustment of Advances a. Unless the applicant For the main extenslon elects to arrange For the installation of the extension himself, as permitted by Section C.l.c., the Full amount of the required advance or an acceptable surety bond must be provlded to the utility at the time of execution of the main extension agreement. b. IF the applicant For a main extension posts a surety bond in iieu of cash, such surety bond must be replaced with cash not less than ten calendar days before construction is to com- mence; provided, however, that if special facilities are requlred primarily for the service requested, the applicant for the extension may be required to deposit sufficient cash tO cover the cost of such special Facilities before they are ordered by the utillty. c. An applicant for a main extension w'ho advances Funds shall be provided with a statement of actual construction cost and adjusted construction cost showing in reasonable detail the costs incurred For material, labor, any other direct and indirect costs, overheads, 'and total costs; or unit costs; or contract costs, whichever are appropriate. d."'Said statement shall be submitted within sixty days after the actual construction c~sts of the installation have been ascertained by tile utility. In the event that the actual con- struction costs For the entlre installations shall not have been.determined withln 120 days after completion of constrMction work, a prelimlnary determination of actual and adjusted · construction costs shall be submitted,, based upon the best available information at that time. e. Any differences between the adjusted construction costs and the amount advanced shall be shown as a revision of the amount of advance and shall be payable within thirty days of date of submission of statement. 7. Assignment of Main Extension Contracts Any contract entered into under Sections B and C of this rule, or under similar provisions of Former rules, may be assigned, after settlement of adjusted construction costs, after written notice to the utility by the holder of said contract as shown by the utility~s records. Such assignment shall apply only to those refunds which become due more than thirty days after the date of receipt by the utillty of the notice of assignment. The utility shall not be required to make any one refund payment under such contract to more than a single assignee. 8. Interpretations and Deviations In case of disagreement or dispute regarding the application of any provisions of this rule, or in circumstances where the applicatlon of this rule appears unreasonable to either party, the utility, appllcant or applicants may refer the matter to the Commission for determination. B. Extensions to Serve Zndividuals 1. Payment Extensions of .ater mains to serve new individual customers shalZ be paid FoP and contributed to the utility by the individual customer requesting the main extension. CaZcu]ation of payment shall be on the basis of a main not in excess o.f 6" in diameter; except ,here a larger main is required by the speclal needs of the new customer. The utillty shall be responsible For stalllng and paying For service pipes, meter boxes and meters to serve the new individual cus- tomer. 2. Refunds IF subsequent applicants For water service are connected directly in the ~aln extension contrib- uted by the orlginal individual customer, such ~ubsequent applicants shall pay to-the utillty an amount equal to the cost of 50 Feet of the original extension. Such amounts shall be imme- dlately refunded by the utility to the initial customer who origlnally paid For and contributed the main extension to the utillty. Total payments to the inltial customer by subsequent appli- cants For water service who are connected directly to the extension shall not exceed the origi- nal cost of the extension. No refunds shall be made after a period of ten years From completion of the main extension. C. Extensions to Serve Subdivisions, Tracts, Housing Projects; Industrial Developments, Commercial Buildings, or Shopping Centers 1. Advances a. Unless the procedure outlined in Section C.].c., is Followed, an applicant For a main exten- '~ion to serve a new subdivision, tract, housing project, industrial development, or organ- ized commercial district shall be required to advance to the utility, before construction is commenced, the estimated reasonable cost of the extension to be actually installed, From the nearest utility Facility at least equal in size or capacity to the main required to serve both the new customers and a reasonable estimate of the potential customers who might be served directly From the main extension. The costs of the extension shall inc]ude neces- sary service stubs or service pipes, Fittings, gates and housing therefor, and meter boxes,' but shall not include meters. To this shall be added the cost of Fire hydrants when re- quested by the applicant For the main extension or required by public authority, whenever such. hydrants are to become the property of the utility. b. IF speclal Facilities consisting of items not covered by Section C.l.a. are required For the service requested and, when such Facilities to be installed will supply both the main exten- sion and other parts .of the utility~s system, at least 50 percent of the design capacity gallons, gpm, or other appropriate units) is required to supply the main extension, the cost of such special Facilltles may be included in the advance, subject to refund, as herelnaFter "'provided, along with refunds of the advance of the cost of the extension Facilities de- scribed in Section C.l.a. above. c. In lieu of providing the advances in accordance with Sections C.i.a. and C.l.b., the ~ppli- cant For a main extension .shall be permitted, if qualified in the judgment of the utility, to construct and install the ~acilltles hlmselF, or arrange For. their ~nstallation pu~su~pt to competitive bidding procedures initiated. by him and limited to the qualified bidders. The cost, including the cost of inspection and supervision by the"utility, shall be p~id dlrectly by applicant. The applicant shall. provide the utility with a statement of actual construction cost in reasonable detail. The amount to be treated as an advance subject to refund shall be the lesser of (1) the actual cost or (2) the price quoted in the utillty*s detailed cost estimate. The installation shall be in accordance with the plans and specifi- cations submitted by the utility pursuant to Section A.5.b. d. IF, in the opinion of the utility it appears that a proposed main extension will not, within a reasonable period, develop sufficient revenue to make the extension selF-supportlng, or if For some other reason it appears to the utility that a main extension contract would place an excessive burden on customers, the utility may require nonrefundable contributions of plant Facilities From developers in lleu of a main extension contract. If an applicant for a main extension contract who is asked to contribute the facilities belleves such a request to be unreasonable, such applicant may refer the matter to the Com- mission for determination, as provided for ill Section A.8. of this rule. -- 2. Refunds a. The amount advanced under Section C.l.a., C.l.b., and C.l.c. shall be subject to refund by the utility, in cash, without interest, to the party or parties entitled thereto as set forth in the following two paragraphs. The total amount so refunded shall not exceed the total of the amount advanced and For a period not to exceed 40 years after the date of the contract. b. Payment of refunds shall be made not later than June 30 of each year, beginning the year following execution of contract, or not later than 6 months after the contract anniversary date if on an anniversary date basis. c. Whenever costs of main extensions and/or special facilities have been advanced pursuant to Section C.l.a., C.l.b., or C.l.c., the utility shall annually refund to the contract holders an amount equal to 2½ percent of the advances until the principal amounts of the contracts have been .fully repaid. Whenever costs of special facilities have been advanced pursuant to Section C.l.b. or C.l.c., the amount so advanced shall be divided by the number of lots (or living units, whichever is greater) which the special facilities are designed to serve, to obtain an average advance per lot (or. living unit) For special facilitles. When another builder applies for a main extension to serve any lots for which the special facilitles are to be used, the new appllcant shall, in addition to the costs 'of his proposed main extension, also advance an amount for speclal facilitles. This amount shall be -the average advance per lot.for special facilities for each lot .to be used less 2½ percent of the average advance for each year in which refunds have been due and payable on the origlnal contract, prorated to June 30 on a monthly basis. The amount advanced to the utillty by the new applic*ant shall be-lmmedlately refunded to the holder of the original contract, which includea the cost of the special facilitles, "-and the original contract advance will be reduced accordingly. The utili-ty will thence- forth refund 2½ percent annually on each .of the contract amounts', as determined above, to the holders of the contracts. Advances and refunds based ~n additlonal builder participation will be determined in.a lar manner. , In no case shall the refund on any contract exceed the amount advanced. ' ..... "" d. With respect to a contract entered into before the effective d~te of this tariff shee~ at any time during the 20-year refund period, 80 percent. of the bona fide customers for which the extension or special facilities were designed are being served therefrom, the utillty may, with the approval of the contract holder, modify the contract so that the utillty shall become obllgated to pay, in cash, any balance which may remain unrefunded at the end of said 20-year period. Such balance shall be refunded in five equal annual insta]lments, payable beginning 21 years after the date of the contract. 3. Termination of Nain Extension Contracts a. Any contract whose refunds are based on a percentage of the amount advanced may be purchased by the utility and terminated provided that the terms are mutually agreed to by the parties or their assignees and Section C.3.co and Section C.3.d. are complied with. The maximum price that may be paid by the utility to terminate a Contract shall be calculated by multi~ plying the remaining unrefunded contract balance times the appropriate termination factor set out below. No contract that has been in effect for less than 10 years shall be termi- nated without prior Commission approval. ' IERMINATION FACTORS Years Years Years Years Remaining Factor Remaining Factor Remaining Factor Remaining 1 .8929 11 .5398 21 .3601 31 2 .8450 12 .5162 22 .3~75. 32 3 .8006 13 .~g~1 23 .3356 33 ~ .7593 14 .~734 24 .32~3 34 5 .7210 15 .4541 25 .3137 35 6 .6852 16 .4359 26 .3037 36 7 .6520 17 .4188 27 .2942 37 8 .6210 18 .4028 28 .2851 38 9 .5920 19 .3877 29 .2768 39 10 .5650 20 .3729 30 .2685 40 Factor .2608 .2535 .2465 .2399 .2336 ,t2276 .2218 .2136 .2111 .2061 b. Any contract with refunds based upon percentage of revenues and entered into under Section 'C. of the former rule, may be purchased by the utility and terminated, provided the payment is not in excess of the estimated revenue refund multlplied by the termination factor in the following table, the terms are otherwise mutually agreed to by the parties or their as- signees and Section C,3,c, and Section C.3.d. hereof are complied with. lhe estimated reve- nue refund is the amount that would otherwise be refunded, at the current level of refunds, over the remainder of the twenty-year contract period, or shorter period that would be re- quired to extinguish the total refund obligation. It shall be determined by multiplying 22 percent of the average annual revenue per service for the immediately preceding calendar year by the number of bona fide customers at the proposed termination date, times the number of years or fractions thereof to the end of the twenty-year contract period or shorter that would be required to refund the remaining contract balance. TERMINATION FACTORS Years Years Remaining Factor 'Remaining Factor I .8929 11 .5398 2 .8~50 12 .5162 3 .8006 13 .~9~1 4 .7593 14 .~73~ 5 .7210 15 .4541 6 .6852 16 .~359 7 .6520 17 .4188 8 .6210 18 .4028 g .5920 19 .3877 10 .5650 c. The utility shall Furnish promptly to the Commission the foil'owing information in writing and shall obtain prior authorization by a Formal appliCation'under Sections 816-830 of the' Public Utilities Code if payment is to be made other than in cash: (1) A copy of the main extension contract, together with data adequately describing the development For which the advance was made and the total adjusted construction cost of the extension. (2) The balance unpaid on the contract and the calculation of the maximum termination price, as above defined, as of the date of termination and the terms under which the obligation was terminated. (3)The name of the holder of the contract when terminated. d. Discounts obtained by the utility from contracts terminated under the provisions of this section shall be accounted for by credits to Ac. 265, Contributions in Aid of Construction. Extensions Designed to Include Fire Protection 1. The cost of distribution mains designed to meet the fire flow requirements set forth in Section VIII.l(a) of General Order No. 1'03 is to be advanced by the applicant. The utillty sh~ll re- fund this advance as provided in Sections B.2. an~'C.2. of this rule. 2. Should distribution mains be designed to meet fire flow requirements in excess of those set forth in Section VIII.l(a) of General Order No. I03, the increase in cost of the dlstrlbutio~ mains necessary to meet such higher fire flow requirements shall be paid to the utility as a -contribution in aid of construction. 3. The cost of facilities other than hydrants and distribution mains required to provide supply, pressure, or storage p~imarily for fire protection purposes, or portions of such facilities allocated in proportion to the capacity designed for Fire protection purposes, shall be paid to the utility as a contribution in aid of construction.