§ 47-352 — Subscriptions to accelerated projects

Sec. 47-352. - Subscriptions to accelerated projects.

(a) In order to subscribe to an accelerated project a subscriber must file a reservation application for a proposed development located within the service area of the facilities constituting the accelerated project and, if the application is approved, must, within the time period prescribed, pay or provide security for the payment of the capital recovery charges applicable to the proposed development. The director shall accept subscriptions on a first-come first-served basis in accordance with the date upon which each reservation application is received; provided, however, that subscriptions received for proposed developments which are currently served by private interim wastewater treatment plants will be given precedence over all other subscriptions regardless of the date of application. The director shall accept reservation applications which do not specify a proposed development. The aggregate total of such non-site specific reservation applications may not exceed 15 percent of the minimum subscription amount for the accelerated project. (b) At the close of the subscription period, the director shall calculate the total dollar amount of subscriptions received and: (1) If such amount equals or exceeds the minimum subscription amount; or (2) If the director otherwise determines that the accelerated project should proceed and receives the approval of the city council; then the director shall issue to each subscriber a wastewater capacity reservation in the amount of wastewater capacity for which application was made, conditioned upon the completion and acceptance of the accelerated project (or conditioned upon the occurrence of such other event in connection with the accelerated project as the director determines will reasonably assure that adequate facilities will be available prior to the initiation of utility service to the proposed developments). (c) If, at the close of the subscription period, the director determines that less than the minimum subscription amount was received from subscribers and that the accelerated project should be cancelled, then the director shall notify each subscriber to the accelerated project of such cancellation and shall, within 60 days of the close of the subscription period, refund to each subscriber the amount of the capital recovery charges that subscriber has paid, plus interest earned by the city on such fund, if any, or release any security provided by that subscriber in connection with the subscription. (d) The director shall accept as security for the payment of capital recovery charges, under this section, letters of credit which are: (1) In the form or forms prescribed by the city attorney; (2) Issued by a financial institution which meets the qualifications prescribed by the director of the department of finance; and (3) For the full amount of the applicable capital recovery charges. In addition to letters of credit, the director may accept other forms of security for the payment of capital recovery charges under this section if the city determines that such forms of security will adequately protect the interests of the city and if such forms of security are specifically identified in the published notice for the accelerated project for which they are to be accepted.

(Code 1968, § 49-752; Ord. No. 83-650, § 1, 5-3-83; Ord. No. 08-52, § 93, 1-16-08, eff. 1-26-08)