§ 13.04.430. Service outside city limits.

A.

Water service to customers outside the city limits shall at all times be subject to the prior and superior rights of customers inside the city limits.

B.

Applicants for water service outside the city boundaries shall execute a form containing the following agreement:

 Application is hereby made for water service at premises known as _____, outside the city of Sheridan, Oregon.

 It is understood and agreed that if this service is allowed, the undersigned owner or occupant of the premises referred to herein shall pay the rate prescribed by the city of Sheridan from time to time for service at that location; that this service shall be a special contract service and not provided by the city as a common utility service; that the quantity of water supplied by the service may be reduced, or the service entirely discontinued, at any time when the city council of said city finds such action necessary in order to provide sufficient service to the inhabitants within the limits of said city, inasmuch as water service beyond the city limits is a service of surplus water and not needed within the city; that at least 30 days' written notice shall be given by the city before such discontinuance may be put into effect; that notice delivered at the premises or at the last known address of the owner or applicant shall be sufficient; provided, however, the city council may declare an emergency exists and the water may be shut off without said notice.

 That the undersigned owner may discontinue service without advance notice of more than one day, but shall be responsible for all water served to the premises by the city until such notice in writing is given of such discontinuance.

C.

Rates for purchase of water by customers outside the city shall be established by the city council based on but not limited to the following considerations:

1.

The cost of operation and maintenance of the affected capital improvements, prorated on demand estimated by the city;

2.

The depreciated value of affected capital improvements; and

3.

A rate of return on the investment for capital improvements serving the area(s) outside the city, which rate shall not be less than ten (10) percent.

D.

Provision of services of the city water system shall be further governed by applicable policies, as duly adopted or amended, contained in the city of Sheridan comprehensive land use plan and city ordinances which implement the plan.

E.

The owner of the tract of land outside the city shall make written application on approved forms to the city council of Sheridan for new water service and submit as a part of such application a plot or map of the area and improvements proposed to be served.

F.

Water service, if approved, will be only to an agreed upon area and residence, designated on the plot or map submitted to the council. Service to an unapproved residence or area would be cause for the city council to give notice of disconnection or discontinuance and effect termination of service.

G.

The area to be served will agree to annexation to the city at the option of the city under then existing laws pertaining to annexation in the state of Oregon.

H.

The water service may be discontinued to any customer under this policy in accordance with the city policies concerning the sale of surplus water.

I.

The owner shall be responsible for the construction and maintenance of his/her/its' own service line to the water transmission line, all at his/her/its' sole cost and expense, and he shall pay all applicable system development, hookup, inspection and meter fees and charges.

J.

Construction and installation of such service line must have prior written approval by the city council of the city of Sheridan, Oregon.

K.

The owner shall enter into a written contract for the purchase of outside water on the contract form and subject to terms and conditions approved by the city council.

L.

In connection with normal operations or emergency situations on the transmission line, the city shall reserve the right to suspend service for repairs, maintenance, or reconstruction.

M.

Due to changes or increase in the city's demand for water through said transmission mainline, the city council shall make no guarantee as to a sustained water pressure in said mainline. The outside user shall be responsible for installation of supplemental pumps or storage necessary to maintain adequate and lawful pressure to the outside water user.

N.

Although the city's water supply is and will be, for the foreseeable future, chlorine-treated at the city's water treatment plant, in the event the city's treatment facilities are moved to a location at or near the city of Sheridan, Oregon, then it will become necessary for the owner to treat the water he receives from the city's transmission line, and the city will give the owner one year's written notice of the change of location of its treatment facility.

O.

The applicant's approval is valid for service to one residence, or specified improvements only.

P.

City water service district boundaries are the corporate limits of the city.

Q.

Water service connections beyond the service district boundaries will be granted only when the following criteria are met to the sole satisfaction of the city council:

1.

The service interest is in the best interest of the city.

2.

The service connection will not result in a substantially greater density or intensity of use than has been existing on the proposed site.

3.

The property owner signs a petition requesting annexation or waiving objection to any future annexation of the property to the city, binding upon heirs/assigns, or successors in interest, and this document is recorded against the property.

4.

The service shall be exclusive to one use and may not be utilized to serve another residence, business or firm. At the time that the service agreement is executed, the use will be enumerated and limited thereby, except for accessory uses and structures.

5.

The service connection will continue only so long or at such times as it can be maintained without jeopardizing the supply to the city.

6.

The service connection and all costs associated with extending the service to the property shall be born by the recipient. All such extensions shall be built and maintained to city public works standards at the recipient's expense.

7.

The service connection shall meet all Yamhill County building and zoning requirements.

8.

For water services within the urban growth boundary: the service connection replaces an existing water supply that does not meet Oregon Health Division Safe Drinking Water Standards.

9.

For water services outside the urban growth boundary: the service connection replaces an existing water supply which constitutes a health hazard. In situations where circumstances make the cost of an alternative water source prohibitive, additional service may be granted to existing dwellings along the mainline extension.

10.

The applicant made and documented reasonable efforts to obtain an alternative source of potable domestic water, and failed to secure such water supplies despite such best efforts.

R.

Notwithstanding the foregoing criteria, the city reserves the right to grant access to city water service to properties located outside the city municipal boundaries in exchange for easement or other property rights beneficial to the city.

(Ord. 02-9 § 1, 2002; Ord. 86-1 Art. 5 §§ 1—4, 1986)

(Ord. No. 2012-02, § 1, 3-19-2012)