PRIOR PRINTER'S NOS. 54, 1692 PRINTER'S NO. 1808
No. 51 Session of 2003
INTRODUCED BY HERMAN, PHILLIPS, DeWEESE, CORNELL, BEBKO-JONES, BUXTON, CAPPELLI, CREIGHTON, DALLY, FAIRCHILD, GANNON, GEIST, HARHAI, HARHART, HESS, LAUGHLIN, LEH, MANN, McNAUGHTON, PRESTON, SATHER, SAYLOR, SCAVELLO, STEIL, STERN, TURZAI, WOJNAROSKI, YOUNGBLOOD, R. STEVENSON, LYNCH, HERSHEY, E. Z. TAYLOR, BROWNE, FRANKEL, HORSEY, YUDICHAK, DALEY AND SAINATO, JANUARY 29, 2003
AS AMENDED ON THIRD CONSIDERATION, HOUSE OF REPRESENTATIVES, MAY 13, 2003
AN ACT 1 Amending Title 53 (Municipalities Generally) of the Pennsylvania 2 Consolidated Statutes, further providing for powers and 3 duties of authorities. 4 The General Assembly of the Commonwealth of Pennsylvania 5 hereby enacts as follows: 6 Section 1. Section 5607(d)(17), (24), (30), (32) and (33) of 7 Title 53 of the Pennsylvania Consolidated Statutes are amended 8 to read: 9 § 5607. Purposes and powers. 10 * * * 11 (d) Powers.--Every authority may exercise all powers 12 necessary or convenient for the carrying out of the purposes set 13 forth in this section, including, but without limiting the 14 generality of the foregoing, the following rights and powers: 15 * * *
1 (17) To do all acts and things necessary or convenient 2 for the promotion of its business and the general welfare of 3 the authority to carry out the powers granted to it by this 4 chapter or other law[.], including, but not limited to, the 5 adoption of reasonable rules and regulations that apply to 6 water and sewer lines located on a property owned or leased 7 by a customer and to refer for prosecution as a summary 8 offense any violation dealing with rules and regulations 9 relating to water and sewer lines located on a property owned 10 or leased by a customer. 11 * * * 12 (24) To charge enumerated fees to property owners who 13 desire to or are required to connect to the authority's sewer 14 or water system. Fees shall be based upon the duly adopted 15 fee schedule which is in effect at the time of payment and 16 shall be payable at the time of application for connection or 17 at a time to which the property owner and the authority 18 agree. In the case of projects to serve existing development, 19 fees shall be payable at a time to be determined by the 20 authority. An authority may require that no capacity be 21 guaranteed for a property owner until the tapping fees have 22 been paid or secured by other financial security. The fees 23 shall be in addition to any charges assessed against the 24 property in the construction of a sewer or water main by the 25 authority under paragraphs (21) and (22) as well as any other 26 user charges imposed by the authority under paragraph (9) 27 [but], except that no reservation of capacity fee or other 28 similar charge shall be imposed or collected from a property 29 owner who has applied for service unless the charge is based 30 on debt and fixed operating expenses. A reservation of 20030H0051B1808 - 2 -
1 capacity fee or other similar charge may not exceed 60% of 2 the average sanitary sewer bill for a residential customer in 3 the same sewer service area for the same billing period. Any 4 authority opting to collect a reservation of capacity fee or 5 other similar charge may not collect the tapping fee until 6 the time as the building permit fee is due. Tapping fees 7 shall not include costs included in the calculation of [such] 8 any other fees[.], assessments, rates or other charges 9 imposed under this act. 10 (i) The fees may include any of the following [fee 11 components] if they are separately set forth in a 12 resolution adopted by the authority [to establish these 13 fees]: 14 (A) Connection fee. [It may] A connection fee 15 shall not exceed an amount based upon the actual cost 16 of the connection of the property extending from the 17 authority's main to the property line or curb stop of 18 the property connected. The authority may also base 19 the connection fee upon an average cost for 20 previously installed connections of similar type and 21 size. Such average cost may be trended to current 22 cost using published cost indexes. In lieu of payment 23 of the [fees] fee, an authority may require the 24 construction [and dedication] of those facilities by 25 the property owner who requested the connection. 26 (B) Customer facilities fee. [It may] A customer 27 facilities fee shall not exceed an amount based upon 28 the actual cost of facilities serving the connected 29 property from the property line or curb stop to the 30 proposed dwelling or building to be served. The fee 20030H0051B1808 - 3 -
1 shall be chargeable only if the authority installs 2 the customer facilities. In lieu of payment of the 3 customer facilities fee, an authority may require the 4 construction of those facilities by the property 5 owner who requests customer facilities. In the case 6 of water service, the fee may include the cost of a 7 water meter and installation if the authority 8 provides or installs the water meter. If the property 9 connected or to be connected with the sewer system of 10 the authority is not equipped with a water meter, the 11 authority may install a meter at its own cost and 12 expense. If the property is supplied with water from 13 the facilities of a public water supply agency, the 14 authority shall not install a meter without the 15 consent and approval of the public water supply 16 agency. 17 (C) Tapping fee. [It may] A tapping fee shall 18 not exceed an amount based upon some or all of the 19 following [fee components if they are] parts which 20 shall be separately set forth in the resolution 21 adopted by the authority to establish these fees. In 22 lieu of payment of this fee, an authority may require 23 the construction and dedication of only such 24 capacity, distribution-collection or special purpose 25 facilities necessary to supply service to the 26 property owner or owners. 27 (I) Capacity part. The [fee may] capacity 28 part shall not exceed an amount that is based 29 upon the cost of capacity-related facilities, 30 including, but not limited to, source of supply, 20030H0051B1808 - 4 -
1 treatment, pumping, transmission, trunk, 2 interceptor and outfall mains, storage, sludge 3 treatment or disposal, interconnection or other 4 general system facilities. [Facilities] Except as 5 specifically provided in this paragraph, such 6 facilities may include only those that provide 7 existing service [or will provide future 8 service]. The cost of [existing] capacity-related 9 facilities, excluding facilities contributed to 10 the authority by any person, government or 11 agency, or portions of facilities paid for with 12 contributions or grants other than tapping fees, 13 shall be based upon their [replacement cost or 14 upon] historical cost trended to current cost 15 using published cost indexes or upon the 16 historical cost plus interest and other financing 17 fees paid on [bonds] debt financing such 18 facilities. [In the case of existing facilities, 19 outstanding] To the extent that historical cost 20 is not ascertainable, tapping fees may be based 21 upon an engineer's reasonable written estimate of 22 current replacement cost. Such written estimate 23 shall be based upon and include an itemized 24 listing of those components of the actual 25 facilities for which historical cost is not 26 ascertainable. Outstanding debt related to the 27 facilities shall be subtracted from the cost, 28 [but debt may not be subtracted which is 29 attributable] except when calculating the initial 30 tapping fee imposed for connection to facilities 20030H0051B1808 - 5 -
1 exclusively serving new customers. [Under all 2 cost approaches, the cost of capacity-related 3 facilities shall be reduced by the amount of 4 grants or capital contributions which have 5 financed them. The capacity part of the tapping 6 fee per unit of capacity required by the new 7 customer may not exceed the cost of the 8 facilities divided by the design capacity.] The 9 outstanding debt shall be subtracted for all 10 subsequent revisions of the tapping fee, except 11 as specifically provided herein. For tapping fees 12 imposed for connection to facilities exclusively 13 serving new customers, an authority may, no more 14 frequently than annually and without updating the 15 historical cost of or subtracting the outstanding 16 debt related to such facilities, increase the 17 tapping fee by an amount calculated by 18 multiplying such tapping fee by the weighted 19 average interest rate on the debt related to such 20 facilities applicable since the last increase of 21 the tapping fee for such facilities. The capacity 22 part of the tapping fee per unit of design 23 capacity of said facilities required by the new 24 customer shall not exceed the total cost of the 25 facilities as described herein divided by the 26 system design capacity of all such facilities. 27 Where the cost of facilities to be constructed or 28 acquired in the future are included in the 29 calculation of the capacity part as permitted 30 herein, the total cost of the facilities shall be 20030H0051B1808 - 6 -
1 divided by the system design capacity plus the 2 additional capacity to be provided by the 3 facilities to be constructed or acquired in the 4 future. An authority may allocate its capacity- 5 related facilities to different sections or 6 districts of its system and may impose additional 7 capacity-related tapping fees on specific groups 8 of existing customers such as commercial and 9 industrial customers in conjunction with 10 additional capacity requirements of those 11 customers. [In the case of] The cost of 12 facilities to be constructed or acquired[, the] 13 in the future that will increase the system 14 design capacity may be included in the 15 calculation of the capacity part, subject to the 16 provisions of clause (VI). The cost of such 17 facilities shall not exceed their reasonable 18 estimated cost set forth in a duly adopted annual 19 budget or a five-year capital improvement plan[, 20 and the authority in furtherance of the 21 facilities must take any action as follows:]. The 22 authority shall have taken at least two of the 23 following actions toward construction of the 24 facilities: 25 (a) [obtain] obtained financing for the 26 facilities; 27 (b) [enter] entered into a contract 28 obligating the authority to construct or pay 29 for the cost of construction of the 30 facilities or its portion thereof in the 20030H0051B1808 - 7 -
1 event that multiple parties are constructing 2 the facilities; 3 (c) [obtain] obtained a permit for the 4 facilities; 5 (d) [spend substantial sums or resources 6 in furtherance of the facilities;] obtained 7 title to or condemned additional real estate 8 upon which the facilities will be 9 constructed; 10 (e) [enter] entered into a contract 11 obligating the authority to purchase or 12 acquire facilities owned by another; 13 (f) [prepare] prepared an engineering 14 feasibility study specifically related to the 15 facilities, which study recommends the 16 construction of the facilities within a five- 17 year period; [or] 18 (g) [enter] entered into a contract for 19 the design or construction of the 20 facilities[.] or adopted a budget which 21 includes the use of in-house resources for 22 the design or construction of the facilities. 23 (II) Distribution or collection part. The 24 [fee] distribution or collection part may not 25 exceed an amount based upon the cost of 26 distribution or collection facilities required to 27 provide service, such as mains, hydrants and 28 pumping stations. Facilities may only include 29 those that provide existing service [or those 30 that will provide future service]. The cost of 20030H0051B1808 - 8 -
1 [existing] distribution or collections 2 facilities, excluding facilities contributed to 3 the authority by any person, government or 4 agency, or portions of facilities paid for with 5 contributions or grants other than tapping fees, 6 shall be based upon [their replacement cost or 7 upon] historical cost trended to current cost 8 using published cost indexes or upon the 9 historical cost plus interest and other financing 10 fees paid on [bonds] debt financing such 11 facilities. To the extent that historical cost is 12 not ascertainable, tapping fees may be based upon 13 an engineer's reasonable written estimate of 14 replacement cost. Such written estimate shall be 15 based upon and include an itemized listing of 16 those components of the actual facilities for 17 which historical cost is not ascertainable. [In 18 the case of existing facilities, outstanding] 19 Outstanding debt related to the facilities shall 20 be subtracted from the cost, [but debt may not be 21 subtracted which is attributable] except when 22 calculating the initial tapping fee imposed for 23 connection to facilities exclusively serving new 24 customers. [In the case of facilities to be 25 constructed or acquired, the cost shall not 26 exceed their reasonable estimated cost. Under all 27 cost approaches, the cost of distribution or 28 collection facilities shall be reduced by the 29 amount of grants or capital contributions which 30 have financed them.] The outstanding debt shall 20030H0051B1808 - 9 -
1 be subtracted for all subsequent revisions of the 2 tapping fee except as specifically provided 3 herein. For tapping fee imposed for connection to 4 facilities exclusively serving new customers, an 5 authority may, no more frequently than annually, 6 and without updating the historical cost of or 7 subtracting the outstanding debt related to such 8 facilities, increase such tapping fee by an 9 amount calculated by multiplying the tapping fee 10 by the weighted average interest rate on the debt 11 related to such facilities applicable since the 12 last increase of the tapping fee for such 13 facilities. The distribution or collection part 14 of the tapping fee per unit of design capacity of 15 said facilities required by the new customer 16 [may] shall not exceed the cost of the facilities 17 divided by the design capacity. An authority may 18 allocate its distribution-related or collection- 19 related facilities to different sections or 20 districts of its system and may impose additional 21 distribution-related or collection-related 22 tapping fees on specific groups of existing 23 customers such as commercial and industrial 24 customers in conjunction with additional capacity 25 requirements of those customers. 26 (III) Special purpose part. [Fees] A part 27 for special purpose facilities shall be 28 applicable only to a particular group of 29 customers or for serving a particular purpose or 30 a specific area based upon the cost of the 20030H0051B1808 - 10 -
1 facilities, including, but not limited to, 2 booster pump stations, fire service facilities, 3 water or sewer mains, pumping stations and 4 industrial wastewater treatment facilities. 5 [Facilities] Such facilities may include only 6 those that provide existing service [or those 7 that will provide future service]. The cost of 8 [existing] special purpose facilities, excluding 9 facilities contributed to the authority by any 10 person, government or agency, or portions of 11 facilities paid for with contributions or grants 12 other than tapping fees, shall be based upon 13 [their replacement cost or upon] historical cost 14 trended to current cost using published cost 15 indexes or upon the historical cost plus interest 16 and other financing fees paid on [bonds] debt 17 financing such facilities. [In the case of 18 existing facilities, outstanding] To the extent 19 that historical cost is not ascertainable, 20 tapping fees may be based upon an engineer's 21 reasonable written estimate of current 22 replacement cost. Such written estimate shall be 23 based upon and include an itemized listing of 24 those components of the actual facilities for 25 which historical cost is not ascertainable. 26 Outstanding debt related to the facilities shall 27 be subtracted from the cost, [but debt may not be 28 subtracted which is attributable] except when 29 calculating the initial tapping fee imposed for 30 connection to facilities exclusively serving new 20030H0051B1808 - 11 -
1 customers. [In the case of facilities to be 2 constructed or acquired, the cost shall not 3 exceed their reasonable estimated cost. Under all 4 cost approaches, the cost of special purpose 5 facilities shall be reduced by the amount of 6 grants or capital contributions which have 7 financed such facilities.] The outstanding debt 8 shall be subtracted for all subsequent revisions 9 of the tapping fee except as specifically 10 provided herein. For tapping fees imposed for 11 connection to facilities exclusively serving new 12 customers, an authority may, no more frequently 13 than annually, and without updating the 14 historical cost of or subtracting the outstanding 15 debt related to such facilities, increase the 16 tapping fee by an amount calculated by 17 multiplying such tapping fee by the weighted 18 average interest rate on the debt related to such 19 facilities applicable since the last increase of 20 the tapping fee for such facilities. The special 21 purpose part of the tapping fee per unit of 22 design capacity of such special purpose 23 facilities required by the new customer [may] 24 shall not exceed the cost of the facilities as 25 described herein divided by the design capacity 26 of the facilities. Where an authority constructs 27 special purpose facilities at its own expense, 28 the design capacity for the facilities may be 29 expressed in terms of the number of equivalent 30 dwelling units to be served by the facilities. In 20030H0051B1808 - 12 -
1 no event shall an authority continue to collect 2 any tapping fee which includes a special purpose 3 part after special purpose part fees have been 4 imposed on the total number of design capacity 5 units used in the original calculation of the 6 special purpose part. An authority may allocate 7 its special purpose facilities to different 8 sections or districts of its system and may 9 impose additional special purpose tapping fees on 10 specific groups of existing customers such as 11 commercial and industrial customers in 12 conjunction with additional capacity requirements 13 of those customers. 14 (IV) Reimbursement [component. An amount 15 necessary to recapture the allocable portion of 16 facilities in order to reimburse the property 17 owner or owners] part. The reimbursement part 18 shall only be applicable to the users of certain 19 specific facilities when a fee required to be 20 collected from such users will be reimbursed to 21 the person at whose expense the facilities were 22 constructed as set forth in [paragraphs (31) and 23 (32).] a written agreement between the authority 24 and such person at whose expense such facilities 25 were constructed. 26 (V) Calculation of tapping fee [components]. 27 (a) In arriving at the cost to be 28 included in the tapping fee [components], the 29 same cost [may] shall not be included in more 30 than one part of the tapping fee. 20030H0051B1808 - 13 -
1 (b) No tapping fee may be based upon or 2 include the cost of expanding, replacing, 3 updating or upgrading facilities serving only 4 existing customers in order to meet stricter 5 efficiency, environmental, regulatory or 6 safety standards or to provide better service 7 to or meet the needs of existing customers. 8 (c) The cost used in calculating tapping 9 fees shall not include maintenance and 10 operation expenses. 11 (d) As used in this subclause, 12 "maintenance and operation expenses" are 13 those expenditures made during the useful 14 life of a sewer or water system for labor, 15 materials, utilities, equipment accessories, 16 appurtenances and other items which are 17 necessary to manage and maintain the system 18 capacity and performance and to provide the 19 service for which the system was constructed. 20 Costs or expenses to reduce or eliminate 21 groundwater infiltration or inflow may not be 22 included in the cost of facilities used to 23 calculate tapping fees UNLESS THESE COSTS OR <-- 24 EXPENSES RESULT IN AN INCREASE IN SYSTEM 25 DESIGN CAPACITY. 26 (e) Except as otherwise provided for the 27 calculation of a special purpose part, the 28 design capacity required by a new residential 29 customer used in calculating sewer or water 30 tapping fees shall not exceed an amount 20030H0051B1808 - 14 -
1 established by multiplying 65 gallons per 2 capita per day for water capacity, 100 3 gallons per capita per day for sewer capacity 4 for the first five years after the effective 5 date of this section and 80 gallons per 6 capita per day for sewer capacity thereafter, 7 times the average number of persons per 8 household as established by the most recent 9 census data provided by the United States 10 Census Bureau. If an authority service area 11 is entirely within a municipal boundary for 12 which there is corresponding census data 13 specifying the average number of persons per 14 household, issued by the United States Census 15 Bureau, the average shall be used. If an 16 authority service area is not entirely within 17 a municipal boundary but is entirely within a 18 county or other geographic area within 19 Pennsylvania for which the United States 20 Census Bureau has provided the average number 21 of persons per household, then that average 22 for the county or geographic area shall be 23 used. If an authority service area is not 24 entirely within a municipal, county or other 25 geographic area within Pennsylvania for which 26 the United States Census Bureau has 27 calculated an average number of persons per 28 household, then the Pennsylvania average 29 number of persons per household shall be used 30 as published by the United States Census 20030H0051B1808 - 15 -
1 Bureau. Alternatively, the design capacity 2 required for a new residential customer shall 3 be determined by a study, but shall not 4 exceed: 5 (i) for water capacity, the average 6 residential water consumption per 7 residential customer or for sewage 8 capacity, the average residential water 9 consumption per residential customer plus 10 ten percent. The average residential 11 water consumption shall be determined by 12 dividing the total water consumption for 13 all metered residential customers in the 14 authority's service area over at least a 15 twelve-consecutive-month period within 16 the most recent five years by the average 17 number of customers during the period; or 18 (ii) for sewer capacity, the average 19 sewage flow per residential customer 20 determined by a measured sewage flow 21 study. Such study shall be completed in 22 accordance with sound engineering 23 practices within the most recent five 24 years for the lesser of three or all 25 residential subdivisions of more than ten 26 lots which have collection systems in 27 good repair and which connected to the 28 authority's facilities within the most 29 recent five years. The study shall 30 calculate the average sewage flow per 20030H0051B1808 - 16 -
1 residential customer in such developments 2 by measuring actual sewage flows over at 3 least twelve consecutive months at the 4 points where such developments connected 5 to the authority's sewer main. 6 (iii) All data and other information 7 considered or obtained by an authority in 8 connection with determining capacity 9 under this subsection shall be made 10 available to the public upon request. 11 (iv) If any person required to pay a 12 tapping fee submits to the authority an 13 opinion from a professional engineer that 14 challenges the validity of the results of 15 the calculation of design capacity 16 required to serve new residential 17 customers prepared under subparagraph (i) 18 or (ii), the authority shall within 30 19 days obtain a written certification from 20 another professional engineer, who is not 21 an employee of the authority, verifying 22 that the results and the calculations, 23 methodology and measurement were 24 performed in accordance with this act and 25 generally accepted engineering practices. 26 If an authority does not obtain a 27 certification required under this 28 subsection within 30 days of receiving 29 such challenge, the authority may not 30 impose or collect tapping fees based on 20030H0051B1808 - 17 -
1 any such challenged calculations or study 2 until such engineering certification is 3 obtained. 4 (f) An authority may use lower design 5 capacity requirements and impose lower 6 tapping fees for multifamily residential 7 dwellings than imposed on other types of 8 residential customers. 9 (VI) Separate accounting for future facility 10 costs. Any portion of tapping fees collected 11 which, based on facilities to be constructed or 12 acquired in the future in accordance with this 13 section, shall be separately accounted for and 14 shall be expended only for that particular 15 facility, or a substitute facility accomplishing 16 the same purpose which is commenced within the 17 same period. Such accounting shall include, but 18 not be limited to, the total fees collected as a 19 result of including facilities to be constructed 20 in the future, the source of the fees collected 21 and the amount of fees expended on specific 22 facilities. The proportionate share of tapping 23 fees based upon facilities to be constructed or 24 acquired in the future under this section shall 25 be refunded to the payor of such fees within 90 26 days of the occurrence of the following: 27 (a) the authority abandons its plan or a 28 part thereof to construct or acquire a 29 facility or facilities which are the basis 30 for such fee; or 20030H0051B1808 - 18 -
1 (b) the facilities have not been placed 2 into service within seven years or for an 3 authority which provides service to five or 4 more municipalities, the facilities have not 5 been placed into service within 15 years, 6 after adoption of a resolution which imposes 7 tapping fees which are based upon facilities 8 to be constructed or acquired in the future. 9 Any refund of fees held for 15 years shall 10 include interest for the period the money was 11 held. 12 (VII) Definitions. As used in this clause, 13 the following words and phrases shall have the 14 meanings given to them in this subclause: 15 "BOD5." The five-day biochemical-oxygen 16 demand. 17 "Design capacity." For residential 18 customers, the permitted or rated capacity of 19 facilities expressed in million gallons per day. 20 For nonresidential customers, design capacity may 21 also be expressed in pounds of BOD5 per day, 22 pounds of suspended solids per day or any other 23 capacity defining parameter that is separately 24 and specifically set forth in the permit 25 governing the operation of the system, and based 26 upon its original design as modified by those 27 regulatory agencies having jurisdiction over 28 these facilities. Additionally, for separate fire 29 service customers, the permitted or rated 30 capacity of fire service facilities may be 20030H0051B1808 - 19 -
1 expressed in peak flows. The units of measurement 2 used to express design capacity shall be the same 3 units of measurement used to express the system 4 design capacity. Except as otherwise provided for 5 special purpose facilities, design capacity may 6 not be expressed in terms of equivalent dwelling 7 units. 8 "Outstanding debt." The principal amount 9 outstanding of any bonds, notes, loans or other 10 form of indebtedness used to finance or refinance 11 facilities included in the tapping fee. 12 "Service line." A water or sewer line that 13 directly connects a single building or structure 14 to a distribution or collection facility. 15 "System design capacity." The design 16 capacity of the system for which the tapping fee 17 is being calculated which represents the total 18 design capacity of the treatment facility or 19 water sources. 20 (ii) Every authority charging a tapping, customer 21 facilities or connection fee shall do so only pursuant to 22 a resolution adopted at a public meeting of the 23 authority. The authority shall have available for public 24 inspection a detailed itemization of all calculations, 25 clearly showing the maximum fees allowable for each part 26 of the tapping fee and the manner in which the fees were 27 determined[.], which shall be made a part of any 28 resolution imposing such fees. A [revised] tapping, 29 customer facilities or connection fee may be revised and 30 imposed upon those who subsequently connect to the 20030H0051B1808 - 20 -
1 system[.], subject to the provisions and limitations of 2 the act. 3 (iii) No authority [may] shall have the power to 4 impose a connection fee, customer facilities fee, tapping 5 fee or similar fee except as provided specifically under 6 this section. 7 (iv) A municipality or municipal authority with 8 available excess sewage capacity, wishing to sell a 9 portion of that capacity to another municipality or 10 municipal authority, may not charge a higher cost for the 11 capacity portion of the tapping fee as the selling entity 12 charges to its customers for the capacity portion of the 13 tapping fee. In turn, the municipality or municipal 14 authority buying this excess capacity may not charge a 15 higher cost for the capacity portion of the tapping fee 16 to its residential customers than that charged to them by 17 the selling entity. 18 (v) As used in this paragraph, the term "residential 19 customer" shall also include those developing property 20 for residential dwellings that require multiple tapping 21 fee permits. This paragraph shall not be applicable to 22 intermunicipal or interauthority agreements relative to 23 the purchase of excess capacity by an authority or 24 municipality in effect prior to February 20, 2001. 25 * * * 26 (30) Where a sewer or water system of an authority is to 27 be extended at the expense of the owner of properties or 28 where the authority otherwise would construct customer 29 facilities referred to in paragraph (24), other than water 30 meter installation, [to allow] a property owner shall have 20030H0051B1808 - 21 -
1 the right to construct the extension or install the customer 2 facilities himself or through a subcontractor approved by the 3 authority, which approval shall not be unreasonably withheld. 4 The authority [may] shall have the right, at its option, to 5 perform the construction itself only if the authority 6 provides the extension or customer facilities at a lower cost 7 and within the same timetable specified or proposed by the 8 property owner or his approved subcontractor. Construction by 9 the property owner shall be in accordance with an agreement 10 for the extension of the authority's system and plans and 11 specifications approved by the authority and shall be 12 undertaken only pursuant to the existing regulations, 13 requirements, rules and standards of the authority applicable 14 to such construction. Construction shall be subject to 15 inspection by an inspector authorized to approve similar 16 construction and employed by the authority during 17 construction. When a main is to be extended at the expense of 18 the owner of properties, the property owner may be required 19 to deposit with the authority, in advance of construction, 20 the authority's estimated reasonable and necessary cost of 21 reviewing plans, construction inspections, administrative, 22 legal and engineering services. The authority may require 23 that construction shall not commence until the property owner 24 has posted appropriate financial security in accordance with 25 paragraph (23). The authority may require the property owner 26 to reimburse it for reasonable and necessary expenses it 27 incurred as a result of the extension. If an independent firm 28 is employed for engineering review of the plans and the 29 inspection of improvements, reimbursement for its services 30 shall be reasonable and in accordance with the ordinary and 20030H0051B1808 - 22 -
1 customary fees charged by the independent firm for work 2 performed for similar services in the community. The fees 3 [may] shall not exceed the rate or cost charged by the 4 independent firm to the authority when fees are not 5 reimbursed or otherwise imposed on applicants. Upon 6 completion of construction, the property owner shall dedicate 7 and the authority shall accept the extension of the 8 authority's system if dedication of facilities and the 9 installation complies with the plans, specifications, 10 regulations of the authority and the agreement. An authority 11 may provide in its regulations those facilities which, having 12 been constructed at the expense of the owner of properties, 13 the authority will require to be dedicated and which facility 14 or facilities the authority will accept as a part of its 15 system. 16 (i) In the event the property owner disputes the 17 amount of any billing in connection with the review of 18 plans, construction inspections, administrative, legal 19 and engineering services, the property owner shall, 20 within 20 working days of the date of billing, notify the 21 authority that the billing is disputed as excessive, 22 unreasonable or unnecessary, in which case the authority 23 shall not delay or disapprove any application or any 24 approval or permit related to the extension or facilities 25 due to the property owner's dispute over the disputed 26 billings, unless the property owner has failed to make 27 payment in accordance with the decision rendered under 28 clause (iii) within 30 days after the mailing date of 29 such decision. 30 (ii) If, within 30 days from the date of billing, 20030H0051B1808 - 23 -
1 the authority and the property owner cannot agree on the 2 amount of billings which are reasonable and necessary, 3 the property owner and authority shall, by mutual 4 agreement, appoint a professional of the same profession 5 or discipline licensed in Pennsylvania to review the 6 billings and make a determination as to the amount of 7 billings which is reasonable and necessary. 8 (iii) The professional appointed under clause (ii) 9 shall hear evidence and review the documentation as the 10 professional in his or her sole opinion deems necessary 11 and shall render a decision within 60 days of the billing 12 date. The property owner shall be required to pay the 13 entire amount determined in the decision immediately. 14 (iv) In the event that the authority and property 15 owner cannot agree upon the professional to be appointed 16 within 30 days of the billing date, the president judge 17 of the court of common pleas of the judicial district in 18 which the municipality is located or if, at the time 19 there is no president judge, the senior active judge then 20 sitting upon application of either party shall appoint a 21 professional, who shall be neither the authority engineer 22 nor any professional who has been retained by or 23 performed services for the authority or the property 24 owner within the preceding five years. 25 (v) The fee of the appointed professional for 26 determining the reasonable and necessary expenses shall 27 be paid by the applicant if the amount of payment 28 required in the decision is equal to or greater than the 29 original bill. If the amount of payment required in the 30 decision is less than the original bill by $2,500 or 20030H0051B1808 - 24 -
1 more, the authority shall pay the fee of the 2 professional. If the amount of the payment required in 3 the decision is less than the original bill by $2,499 or 4 less, the authority and the property owner shall each pay 5 one-half of the fee of the appointed professional. 6 * * * 7 [(32) If a sewer system or water system or any part or 8 extension owned by an authority has been constructed at the 9 expense of a private person or corporation, the authority may 10 charge a tapping fee. The authority shall refund the tapping 11 fee or any part of the fee to the person or corporation who 12 paid for the construction of the sewer or water system or any 13 part or extension of it.] 14 (33) Provisions of paragraphs (30)[,] and (31) [and 15 (32)] shall apply to residential customers in a municipality 16 where the sewer service is being purchased by the 17 municipality or sewer authority from another municipality or 18 sewer authority having excess sewage capacity. 19 Section 2. Notwithstanding section 5(1) of this act, this 20 act shall apply immediately to any connection, customer 21 facilities, tapping or similar fees which are increased or 22 initially imposed subsequent to the effective date of this 23 section. 24 Section 3. Notwithstanding section 5(1) of this act, the 25 mandatory refund provisions of 53 Pa.C.S. § 26 5607(d)(24)(i)(C)(VI) applicable to tapping fees based upon 27 facilities to be constructed or acquired in the future shall 28 apply to tapping fees collected subsequent to the effective date 29 of this section, regardless of when the resolution adopting such 30 tapping fees was adopted. 20030H0051B1808 - 25 -
1 Section 4. The provisions of 53 Pa.C.S. § 2 5607(d)(24)(i)(c)(V)(e) shall not apply: 3 (1) For a period of five years after the effective date 4 of this section, to sewer tapping fees imposed by a joint 5 authority having six or more municipal members which is 6 prohibited from implementing any increase in sewer user fees 7 pursuant to the terms of a contract executed prior to January 8 1, 2003. 9 (2) For a period of five years after the date of closing 10 of original financing, when an authority, in order to support 11 the construction of new facilities, used original financing 12 which closed on or before January 1, 2002, which has a term 13 of at least 15 years and in which tapping fees were relied 14 upon to support the debt service on the financing. 15 Section 5. This act shall take effect as follows: 16 (1) The amendment of 53 Pa.C.S. § 5607(d)(24), (30), 17 (32) and (33) shall take effect in 18 months. 18 (2) The remainder of this act shall take effect 19 immediately. A3L53JLW/20030H0051B1808 - 26 -