Ordinance 477-A
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AN ORDII'JANCE PR0VIDING FliR TIC: EXTENSluN OF THg SE'N8R SYSTEM AND
.\TATER SYSTEM OF THE CITY uF GILR~Y, AT THE EXPENSE OF THE APPLICAN'rS
THEHEFuR~ PHOVIDING THE CUNDI TIONS UNDER WHICH EXTFmSluNS MAY BE
MADE AND PRUVIDING FOR THE REFUND Tu SUCH APPLE ANTS OF A PRO-
PORTIC1-TATE SHARE OF THE COST TO BE PAID BY, SUBSEQUENT APPLICANTS FUR
SERVIC3 C0NKECTIGNS UNDER SUCH EXTENSI0NS.
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THE CU]\E>!TUN CuUNCIL OF THE CITY OF GILRuY DUES l.RDAINAS
FOLLOVliS :
SECTIuN 10 (a). An (l1Nner of real property within any district
or area that has been annexed to the City nf Gilroy and become a
part thereof subsequent to the enactment of Lhis Ordinance or
of real property in the City of Gilr~y that has not been subjected
to the cost of the furnishing, construction and/or installatirn of
sewers in the City of Gilroy either by being a part of the City
of Gilroy when bonds were voted and issued for such sewers or by
being in an improvsment or assessment district formed for such
purpose, may aDply in writing to the City of Gilroy for an extension
of the sewer system of the City of Gilroy to such a point as will
permit the applicant to connect his property therewith. Such
application shall contain a descriptinn of the applicant's property
and shaJ_I be referred to the City Engineer and to the committee of
the Common Council having jurisdiction of such matterso
The City Engineer shall make an investL;ation of the
work to 09 done under the application, and the estimated cost
of making the extension applied for, and also a statement or
recommendation as to whether in his ('pini~n it is feasible and
practical to make the extensiC'n; two or more property owners in
the same general area may join in an aDplication in which event
the report of the Engineer shall include the estimated cost of
making the extension under all the applications and the proportion
of the estimated cost the owner of each ~rcel of property shall
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It shall be the duty of the Engineer, when requested
by the Common Council, to prepare a plat and indicate the
boundaries of the area which will be benefited by the sewer
main extension, and the same/shall be part of the Engineerts
reporto The report of the Engineer shall be filed with the
City Clerk for reference to the Council. In considering the
applications for the extension and the report and recommendations
of the City Engineer, the Council shall determine the definite
estimated cost of the proposed extension and its feasibility,
and may then if it determines such extension to be feasible and
practical enter into a written agreement or agreem~nts with said
applicant or applicants fer the extension of the sewer system
in accordance with the provisions of this Ordinance and the laws
in such cases made and Drovided.
(b) Vfuenever the extent of the anplications is such as
to justify, in the opini0n of the Council, after an investigation,
larger mains or mere extensive installations than those immediately
required by the said applicants, ~ecuase of probable future needs,
development and growth of the general area in which the property
covered by the applications is located, or of adjacent or
intermediate areas, such additional or increased facilities mcv
be made a p~rt of the project and financed by the City of Gilroyo
The City Engineer in such event shall include in his estimate of the
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cost of the extension the portion thereof whbh the City of Gilroy
will finance under such circumstances.
(c) The Common Council of the City of Gilroy may, if it
believes the extension of the said sewer system shculd be made
in accordance with the said application or applicationsp adopt
a Resolution providing that, when the agreements with the
applicants, mentioned in subdivision in Section 2 of said Ordinance,
have bc.en executed by the applicants and the cost to be borne
by the nroperty owners either paid or the lien and installment
agreements hereinafter more particularly described have been
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executed, the extensions will be madeo The said Resolution
shall specify that part of the cost of the extension to be
borne by the City of Gilroy, if any, and the part that is to
be borne by the applicantso
No work shall be begun upon the extension until and
unless that part of the estimated cost thereof to be borne by
the applicants shall be paid to the City of Gilroy and/or the
lien and installment agreements hereinbefore mentioned and herein...
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after described, have been executed and all rights-of-way necessary
secured I;>
SECTION 2. (a) Applicants fer such extension C'f the sewer
system shall pay the amount E_S detellU ined in accordance with the
preceding provisions of this Ordinance to the City of Gilrry in full
or sign a written agreement, in individual cases, to pay applicant's
proportiC'nate part of the cost, in case there is more than :ne
applicant, or the entire cost 'where there 'is a single applicant,
in installments of not less than twenty (20%) percent thereof at
the tinE of the signing of the agreement, twenty (20%) percent
t<ereof three months after the work en Lhe proposed sewer extension
is commenced and twenty (20%) percent each three months thereafter
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until the same is fully paid,-before any work is begun on the
extension~ Such written installment agreement, signed by the
applicant or applicants, together with a lien agreement upon the
property covered by such appLication or applications signed by such
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owner or owners to secure the same, shall be filed with the City
Clerk of the City of Gilroy. The said installment agreement and lien
agreement shall have the usual provisions contained in a promissory
n0Le and Deed of Trust, including the provision that the deferred
balance shall 'hear interest from tinE of commencement of work
upon the extension to the date when paid at the rate of seven (7%)
percent per annum, and that in the case of foreclosure all
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nece~sary and reasonable court costs, including the cost
of obtaining a title insurance policy on said property for
foreclosul'e purposes, and all ether expenses incurred by the
City in protectin,s such security shall be paid by said property
owner or owners. The City of Gilroy may, 'Bfore accepting
said ~greemAnts, require that the applicant furnish a title ins"
urance policy showing the condition of the title to his property
at the tLe, and may reject ~~bid agreemcont unless it satis"actorily
appears that such lien agr'3ement constitutes good and sufficient
security for the payment of said deferred installments. All such
lien, agreements shall be appr()ved by the City .A ttnrney ,,0, s to formo
(b)Th2 Crmm('n C(~uncil sb,all not 'be r.- 'ligated to acc')pt
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any lien and installment agreement in lieu of a full cash payment
in instances!where it deems tne security either inadequate or where
the number of said agreements propos ed on any se'Ner e {tens ion
project will, in the judgment of the Cruncil, create too large a
financial burden upon the City of Gilroy at the time or increase
its financial responsibility beyond the amount justifiable in the
opinion of the said C0uncilD
(c) A separate lien and installment agreement shall
be required of and executed by each applicant desiring to use
that method of financing hispropcrtionate cost of the workD
SECTluN 30 The City of Gilroy, after the estimated cost
of the extension to be borne by the property owners has been
either paid to the City or provided for by installment and lien
agreements, may either do the work connected with the extension
itself or ask for bids and let the w0rk by contracto If the
Ci ty of Gilroy does the work, it sh,J. I keep an accurate account
of the cost thereof. The mC'nies paid by the applicants to the
City of Gilroy to cover their part of the estimated cost shall
be deposited in a fund to be kept by the City Treasurer separ&te
from other funds of the CitYD
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SSCTluN 4. The extension applied'for and the work to be
done in ccnnection th!?I'ewi th, if done by the City of Gilrcy,
shall be performed under the direction of the Chief Administrative
Officer of the City of Gilroy. Upon the completion of the work,
a statement in writing setting forth the total cost of the' extension
shall be submitted to the Crmmon Ccuncil and fi~d with the City
Clerk, and the Chief Administrative Officer shall file with the
City Clerk a statement apportioning to each applicant his share
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of the cost of the work. The apportionment shall be Qased upon
the proportionate number of front feet of land belonging to each I'"~
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applicant as described in his application. If, when the work is
completed; it shall be fC'und that the actual cost thereof is less
than the estLClated am0unt, the excess of money paid to the City
shall be refunded to the applicants in the same proportion that it
was paid to the City. The amount to be refunded to those executing
lien and installment agreements shall be credited upon the next
succeeding installment or installments provided by said agreement
to le pad. In th~ event that the actual cost of the work exceeds
the estimated amount, the applicants, including t~lOS e executing
installment and lien agreements, upon notice and demand, shall
forthwith pay the deficiency in the proper proportions in cash,
and the said agreements and installment and lien agreements shall
expressly so provide.
SECTI0N 50 Whenever the sewer system of the City of Gilroy
has been extended in accordance with the proviSions of tills
ordinance by the use of funds frcm voluntary cnntributions of
the property owners or cut of such funds jointly with City funds,
no property owner iN a district tC' which this Ordinance
applies, who has not theretofore contributed toward or paid
his proportionate share of the cost of said sewer main extension,
shall connect with the said extension until and unless he had paid
to the City 0f Gilrny such a sum in cash or executed an installment
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and lien agreement provided for in Section 2 of this ordinance,
for such a sum as would be his proportionate share of the cost of the
extension had he joined with other property OVffiers inasking for
the e~tension at the time it was made, including his 31are of the
cost berne by the City of Gilroy where the extension was so made as
to be of more than local benefit or of benefit to other property
in addition to that whcse owners joined in the original application
and he is a property owner nf a cla"'s for which the additional
or increased facilities were installed.
SECTION 60 (a) It is not the intention of this Ordhance,
nor shall it be construed, to require a property owner, who has
already installed or constructed a sewer line or ma}ns to or for
his pro~rty, at his cwn e~pense, to bear any part of the cost of any
extension of a se';:ver made pursuant to this ordinance in the event that
the same is connected with the said sewer privately installed, if the
privately installed sewer is acceptable to' the City of Gilroy as
conforming to it s specifications and requirements, and belongs to
and becomes a part of the public sewer system of the City of Gilroy;
provided howev~~r that in ths9 vent of the extension of any sewer
or SeV{.9r sys tem 'mder the provisinns of this urd inance, if such
installation is of additional benefit to th('lse who have already
so constructed and installed an acceptable private sewer connected
or which may be connected in the ordinary way with their property,
the owner s of such property shijll bear such a portion of the cost
of such sewer extension made pursuant to this ordinance as is
commensurate with the additional benefit received, such porti0n
of the cost to be Jetermined by the Common Council upon the
recommendation of the Chief Administrative Officer and tO,be paid
before making any cnnnection to the extensiono
(~) The land in any subdivision or other tract which has
already ha d installed, at the e~pense of the owner or owners
thereof, a sewer system or mains acceptable to the City of Gilroy
as conforming to the general specifications of its sewers,
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shall not b9ar any part of the cost of the extension of the
of the seW'2r system of the City of Gilroy made pursuant to
this urdinance unless such extension is of additional benefit to
the subdivision or land in which the sewer has already been
installed at the expenS9 of the owner thereof and then only to
the extent of the increased benefit derived from the extension,
which increased b?nefit and the amount to be paid because thereof
shall be determined by the CommC'n Council upnn the recommendation
of the Chief Administrative Officer and shall be paid by such owner
before connecting his property to the extension or an installment
and lien agreement entered into.
SECTIuN 7. (a) There shall be, and is hereby established
and created, a special fund in th~ office of the City Treasurer
which she,ll be kno"m and designated as the "S2wer M3.in Extension and
Connection Trust Fund"o
(b) Whenever any person applies for 'a connection'to an
extension of a sewer main or of a sewer system which has been
installed in accordance with the provisions of this Orm nance and
who has net theretofore c0ntributed toward or paid his proportionate
share of the cost of said sewer main extension the pro rata share
of such applicant shall be paid by him to the City Clerk who shall
deposit the sum into the Sewer Main Extensbn and Connection Trust
Fund.
(c) Periodically, but not oftener thaN at quarter annual
intervals, there shall~ refunded to the persons originally
contributing to the cost of the sewer main ex~ension, or to
their successors in interest, their proportionate share of the
amruntof money so contributed, out of the Sewer Main Exten&on
and Connection Trust Fund. The right to the'refund shall run with
the ownership of the land and not be assignable except to the. ownero
(d) Notwithstanding anything to the contrary hereinbefore
set forth the said Sewer Main Extension and Connection Trust Fund
shall absnlul;ely terminate at the end of twenty (20) years
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from and after the extension of any sewer main hereunder and
and any ~onies then in said fund shall be distributed to those
then entitled the~etoo
SECTIuN 8. In any area which shall be served by a S2wer
extension, every structure therein requiring sewage facilities
must be connected to a public sewpr within 30 days after said
public seW2r is available, and septic tanks andjor cesspoals
connected to the structure shall be disconnected and filled
with good sound earth at the time the sewer connection is made.
The provisions of this ordinance requiring the disconnectirn and
abandonment of the use of septic tanks and cesspools when the
public sewer is availab~ is based upon the knowledg8 and (pinion
of the Common Council that such septic tanks and cesspools are
unhealthful, unsanitary and detrimental to the public welfareQ
SECTIuN 90 It shalll-:Je unlavlful for any property owner
in a district mentioned in Section 1 of this ordinance to connect
to a public sewer eytensirn installed under the provisions of
this ordinance until he has obtained a permit from the proper city
authority and paid his share of the cost thereof or shall have
entered into an installment and tien agreement as provided for
in Section 2 of this ordinanceo
SEcrIuN IOcr (a) The foregoing provisions of this ordinance
shall also apply to the extension of water mains where such
extension is applied for by the owner or owners of property within
any district or area that has been annexed to the City of Gilroy
and become a part thereof subsequent to the enactment of this
ordinance or of any area or district that has not been subjected
to the cost of the furnishing, construction and/or installation
of v'ater mains in the City of Gilroy either by being a part of the
City when bonds were voted and issued for such water mains or by
being in an improvement or assessment district\formed for such
purpose; and all the foregoing provisions of t~e ordinance are hereby
made applicable to such extensir'ns of water mains and service
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except the provisirns of Secti0n 9 thereof and such other provisions
as may b~ clearly inapplicable to the extension of water mains.
(b) In the extensinn of vvater mains there sha=~l b? aided
to the project such fire hydrants Gnd fire alarm bo~es as may
in the judgment of the COIDill0n Ccunci109 reasrnabY required and
the cost thereof shall be bo~ne proportirnately by the property
owners applying fer the extensirn.
S8CTIliN II. There shall be and is hereby established and
created a separate fund in the office of the City Treasurer which
shall be known and designated a3 the UWater Main Ex:tension and
Ccnnection Trust F'1nd" which shall be distinct and separate from
the "Sewer Main Extension and Ct'"'nnectii'n Trust Fund" hereinbefcre
mentir ned. The mc-ney shall be paid :Lnto clOd 'ut of the s,;;,id
fund in connection with the extensinn of water mains on the same
basis as monies are paid into and ~ut of the "Sewer Main Extension
and Connection Trust Fund" in connection with the extension of
sewer mainso
SECTION 120 All "ia ter mains and systems and sewer mains
and systems constructed and/or installed pursuant to this
ordinance, and all fittings, hydrants and :ire boxes shall be
the property of the City of Gilroyo
SECTION 13. All Ordinances, or parts of Ordinances,
inconsistent or in c0nflict herewith are hereby repealed.
SECTI0N 14o In the event any section, paragraph, SUbsection,
or part of this ordinance shall for any reason be declared to be
unconstitutional or invalid, such decision shall not affect the
validity of the other portions of this ordinance. The Common
Council hereby declares that it is their intention to enact and pass
each section and part of this Ordinance independently of the other
portion hereof.
SECTI0N 150 This Ordinance shall take effect and be in
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f0rce fr0m and after its passage and approvalo
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ADUPTED ~ND PASSED this lOt1d!.ay of _--AJ;>.n.J..__.
, AC)Do9
1950, by the fol10wing vote:
AYES: C0uncilmen: ;I. H. Wentworth, Ray L. Stevens,
J. B. Thomas, Dale D. Daniels, Geo. M. Mason, David V.,.,'
Stout.
NuES:
Councilmen: None
ABSENT:
Councilmen: None
APPR0VED:
h (1)~ I,
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, ' Mayor
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ATTEST:
G:G..&:
City Clerk
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