PINE CREEK CANYON DOMESTIC WATER IMPROVEMENT DISTRICT
INTERCONNECTION PROCESS
The Pine Creek Canyon Domestic Water Improvement District Interconnection Process establishes the requirements for expansion of the infrastructure to provide service to additional customers of the District.
Pine Creek Canyon Domestic Water Improvement District Objective
| • | Compliance with all statutory requirements. | |
| • | Provide service to residential and commercial customers within the Pine Creek Canyon Domestic Water Improvement District (the "District") | |
| • | Costs associated with adding future customers, both capital improvement and ongoing operating and maintenance, will not be borne by existing customers. All costs associated with connection to and expansion of the infrastructure will be borne by future customers. | |
| • | Service reliability will not be decreased by adding customers. | |
Interconnection Process
The interconnection process is comprised of four phases, (i) interconnection study, (ii) interconnection agreement, (iii) infrastructure design and construction, and (iv) infrastructure inspection and turnover to the District.
Interconnection Study
The interconnection study phase determines the impact of the interconnection on the District in terms of technical expansion requirements, costs associated with the expansion, changes to operating and maintenance requirements, and associated impact on the rate structure. Steps include:
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The prospective interconnector (the "Interconnector") submits an interconnect request to the District. The interconnection request shall include a master plan (the "Master Plan") that shows the size and approximate locations of the water distribution facilities, wastewater collection facilities, and off-site facilities (e.g., wells, storage, pumping, treatment, water distribution, wastewater collection, or related facilities and appurtenances) required to provide adequate District services for the benefit of Interconnector (the "Infrastructure"). The interconnection request shall also include detailed usage requirements along with the basis for establishing these requirements. |
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The District determines the cost associated with conducting a study to determine the technical requirements of the Infrastructure, costs associated with the expansion, changes to the District's operating and maintenance requirements, and associated impact on the District's rate structure. |
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The costs are presented to Interconnector by the District. |
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Should Interconnector elect to proceed, the non-refundable costs for the study shall be paid in full to the District by Interconnector prior to beginning the study. Should Interconnector decide not to proceed, no further action will be undertaken by the District to provide service to Interconnector. |
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| • | Upon payment in full for the cost of the study, the District will at its sole discretion select a contractor to perform the study. |
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The study will define technical Infrastructure expansion requirements and costs associated with the expansion, including, but not limited to, additional wells, storage capacity, expansion of the sewage treatment plant, piping, control and monitoring systems, primary and backup power requirements, spare parts and equipment, performance testing, warranties, additional property needed by the District, and District overhead costs, including District engineering support, legal, training, administrative, and quality control costs. In order to ensure adequate future reliability of service, the Infrastructure will be designed with excess minimal equivalency to one gallon for every gallon of water demanded and one gallon for every gallon of waste produced. |
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The study will also determine changes to the District's operating and maintenance requirements and associated impact on the District's rate structure. User fees charged by the District are based on proportionate shares of the District's cost of operating, maintaining, and replacing the District's systems, and may include the cost of administrators, surveyors, sanitation experts, engineers, legal counsel, and other persons as are reasonably necessary for the operation, maintenance and replacement of the District's systems. The fees may also include any contractual amounts required to meet covenants relating to bonds or other obligations of the District secured by a pledge of, or promise to pay from, the District's fees. | |
| • | The study will be presented to Interconnector. | |
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Should Interconnector not accept and agree to implement the results of the study within 30 calendar days of receipt thereof, no further action will be undertaken by the District to provide service to Interconnector | |
Interconnection Agreement
| • | In the event Interconnector accepts and agrees to implement the results of the interconnection study within 30 calendar days of receipt thereof, the District will develop an interconnection agreement that establishes the terms under which the District will provide services to Interconnector (the "Agreement"). All expenses incurred by the District to develop the Agreement shall be borne by Interconnector as they are expended by the District. The Agreement will include, but not be limited to, the following terms: | |
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Interconnector shall design, construct, and install, or cause to be designed, constructed, or installed, the Infrastructure as detailed in the Master Plan prepared by Interconnector's engineer and approved by the District. Interconnector shall pay all of the costs of designing, constructing, installing, and connecting the Infrastructure, including, but not limited to, the costs of engineering, materials, labor, transportation, equipment, necessary permits and approvals, easements, testing, corrections, insurance, and bonds. | |
| • | Interconnector shall schedule completion of the Infrastructure so as to allow the District to provide District services under the Agreement as such services are requested. | |
| • | Prior to turnover of the Infrastructure (as discussed in Phase 4 below), or upon requesting water service, whichever is first, Interconnector shall submit a cash payment as specified by the District's then current service and meter installation tariff for each water meter to be installed by the District. Water meters will then be installed and service initiated by the District upon Interconnector's request. | |
| • | Interconnector shall obtain, at its cost all necessary permits, zoning, easements, and other governmental approvals in advance of design and construction of the Infrastructure. | |
| • | Interconnector shall, at no cost to the District, and before commencement of construction, grant or cause to be granted to the District, perpetual non-exclusive rights-of-way and easements for any Infrastructure constructed pursuant to this Agreement. | |
| • | Prior to the commencement of construction of the Infrastructure, Interconnector shall furnish the District with appropriate certificates of insurance coverage effective throughout the period of construction. The District shall be named as an additional insured. | |
| • | The Interconnecter shall provide to the District a Letter of Credit or Performance Bond acceptable to the District at the District's sole discretion for the estimated cost of connecting to or expanding the District's infrastructure ("Letter of Credit or Performance Bond "). Should the Letter of Credit or Performance Bond not be provided to the District within 90 calendar days from execution of the Agreement, no further action will be undertaken by the District to provide service to Interconnector. | |
Infrastructure Design and Construction
| • | Upon receipt of the Letter of Credit or Performance Bond, Interconnector will develop the design of the Infrastructure and the specifications for construction (collectively, the "Plans and Specifications") and the quality control process to be used to ensure quality of construction. | |
| • | All Plans and Specifications, construction, and installation of the Infrastructure shall be in accordance with good utility practices, the rules, regulations, and requirements of the Arizona Department of Environmental Quality ("ADEQ"), the District's specifications and details, and the requirements of all other governmental agencies having jurisdiction thereover. Construction shall not commence until the Plans and Specifications have been approved in writing by the District. | |
| • | Interconnector shall submit the Plans and Specifications to the District for review and approval, as well as preliminary plats, final plats, address maps, projected home closings by quarter, and other items reasonably requested by the District. The District shall provide written approval of the Plans and Specifications or provide review comments within 30 days of receipt thereof by the District. The cost of the review will be the expense of the Interconnector . | |
| • | The District will select a quality control supervisor at its sole discretion to inspect the progress of construction. The cost of the quality control supervisor will be the expense of the Interconnector.. | |
Infrastructure Inspection and Turnover to the District
| • | Upon completion of construction of the Infrastructure, Interconnector shall submit a certificate of compliance with the design and construction requirements ("Certificate of Compliance") to the District. The District or its agent will meet with Interconnector to inspect and test the Infrastructure and to develop a punch list of items to be completed by Interconnector. If the Infrastructure meets the performance testing requirements, the District will assume the operation and maintenance of the Infrastructure. No Infrastructure may be placed into service until inspected by the District, ADEQ has issued its Approval of Construction, and the District has issued its provisional acceptance of the Infrastructure, which provisional acceptance shall be issued within 30 days of completion of construction, provided (i) Interconnector has made all required submittals, (ii) Interconnector has completed construction and testing of the Infrastructure, and (iii) said submittals and construction are in accordance with reasonable utility standards. | |
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Upon provisional acceptance by the District, the Letter of Credit or Performance Bond will be reduced to 125% of the estimate to resolve all punch list items. Until all punch list items are completed, Interconnector shall reimburse the District for all operation and maintenance costs. | |
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Upon the District's written provisional acceptance, the Infrastructure shall become and remain the sole property of the District without the requirement of any written document of transfer to the District. However, Interconnector shall furnish any document pertaining to ownership and title as may be requested by the District, including documents evidencing or confirming transfer of ownership to the District, and good and merchantable title free and clear of liens, or which contain provisions for satisfaction of liens by Interconnector. | |
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Within 15 days of Interconnector's correction of all outstanding punch list items, the District shall issue to Interconnector final written acceptance of the Infrastructure. |
| • | Interconnector shall promptly correct all defects and deficiencies in construction, materials, and workmanship upon request by the District made subsequent to inspection by the District and for one year following the District's written final acceptance of the Infrastructure in accordance with the terms of the Agreement. | |
APPROVED AND ADOPTED by the Board of Directors of the Pine Creek Canyon Domestic Water Improvement District at the Special Meeting on April 15, 2006.