Sec. 59. - Local permit authorization.

The utility commission will maintain a program for approval of the construction or alteration of the water distribution system under the assistant city manager/public works. The program will incorporate all requirements of the N.C. Division of Health Services for certification of the program, pursuant to the requirements of NCGS 130A-317 (and as subsequently amended.) Said program shall apply only to projects under the control of the city/county utility commission.

Sec. 60. - Conditions of permit.

Water service furnished by the city is expressly subject to the following conditions, in as full and ample manner as if the same were set out in all applications, permits and contracts relating thereto:

(1)

That the applicant for which the water service is being extended shall employ at his expense a competent engineer to prepare plans and specifications for the proposed improvement and the same shall be submitted to the city for approval.

(2)

That the applicant shall engage a licensed and reputable pipeline contractor acceptable to and approved by the city to lay the proposed water main and appurtenances.

(3)

That the city shall inspect the pipeline during and after construction and that the city must be satisfied that the pipeline and appurtenances meet all city specifications for water system construction before the pipeline may be placed in service.

(4)

That "in-place" drawings of all water installations other than those which are metered and serve only private property be furnished the city on completion of the installation.

(5)

That the applicant shall pay all costs involved in making such extension; provided, however, that if the commission, in order to provide for the anticipated needs of water users beyond those needs which would normally be required for the purposes of the applicant, shall require the installation of a larger waterline than would otherwise be necessary, the commission may contract with the applicant to reimburse the applicant for such portion of the costs as shall be attributable to the larger line required by the commission; provided, further, that in every case where the commission contracts to reimburse the applicant for a portion of the costs of the installation of the waterline, the applicant shall either follow the same procedure of advertising for bids and for the awarding of the contract as the commission would be required to follow if the contract were being let by the commission, or the commission will pay the applicant the price difference based on invoiced pipe prices or the commission may establish a flat rate based on previous bids.

(6)

That all water mains or pipes of every description which are an extension of the city water system, except those which are installed on building sites as connections with buildings, shall become the property of the city without cost to the city at such time as the construction is completed and approved by the city and that such mains shall be located within dedicated public rights-of-way, or within easements shown on a recorded plat; provided that said plats are recorded in the public registry of Forsyth County and provided that permission from the state highway commission must be obtained and approved to the city before construction is begun within the rights-of-way.

(7)

That any subdivision to which or in which the water system is to be extended must be approved by the city-county planning board and the director.

(8)

That all agreements with regard to water extensions of the city shall be approved by the city attorney as to form and legality. The city reserves the right to discontinue any water service outside of the corporate limits at any time it sees fit to do so.

Sec. 61. - Extension of major arterial water mains; conditions.

Major arterial water mains, as that term is used herein, shall refer to water mains larger than twelve (12) inches in diameter which serve as feeder mains for a general area, including those water mains which may hereafter be designated as "feeder mains" or major arterial water mains by the department of public works of the city. Applicants for water extension may be granted permission for the extension of major arterial water mains, subject to the following conditions:

(1)

The contract for the major arterial water mains will be let by the applicant and shall be designed and constructed at the expense of the applicant and as approved by the commission.

(2)

The city will finance the difference between the cost of constructing the applicant's approved requested water main and the cost of constructing the oversized water main as may be required by the city.

(3)

Upon completion of the project, the city will make such adjustment with the applicant as may be necessary in order for the applicant's cost to be the actual cost of the applicant's approved requested water main based upon quantities of work as actually measured and completed, as determined by the city.

(4)

The major arterial water mains and easements therefor shall be the property of the City of Winston-Salem; and all water mains and lines connected therewith and all appurtenances thereto, together with the easements necessary for the operation and maintenance of all such water mains and lines, shall be the property of the City of Winston-Salem from the completion thereof and acceptance of same by the city.

(5)

The city will collect all necessary capital charges for any connections thereafter made to that portion of the major arterial water main constructed by or at the expense, in whole or in part, of the applicant outside the boundary of the applicant's property or subdivision, and the city will remit to the applicant, annually, any such capital charges (either listed under Section 42(e) or Section 64(b) of this resolution) collected by the city within a period of fifteen (15) years from the completion of the project up to, but not in excess of the applicant's investment (without interest) in the major arterial water main.

(Res. of 10-11-10)

Sec. 62. - Procedure when commission unable to fulfill financial obligation pursuant to Section 61.

In the event the commission finds that it is unable to finance its share of the major arterial water main project under the above terms, permission for the construction of such project may be granted upon the terms and conditions as above set forth, except that the applicant shall be required to pay the entire cost of the project. In such instances, the applicant will be entitled to receive remittances as set forth in Section 61 above, up to but not in excess of the applicant's investment in the major arterial water main project (without interest), over a fifteen-year period from the completion and acceptance of the project. In each instance where the applicant shall pay the entire cost of the installation of a major arterial water main, as hereinabove provided, the city shall, immediately following completion of the project, compute and make a record of the cost of constructing an equivalently-sized water main requested to be constructed by the applicant, based on quantities of work as actually measured and completed, and the cost as thus computed and determined by the city shall be conclusive in determining the amounts, if any, to be paid by the city to the applicant.

(Res. of 10-11-10)

Sec. 63. - Investment by utility commission; amount; exception.

The utility commission will make an investment in water main projects at the time water service is requested by users, or as soon thereafter as possible. Such investment shall be based upon which extension plan is selected in Section 64 of this resolution. The provision shall not apply to any water main installed pursuant to a water improvement assessment project. The utility commission will also invest all additional costs if larger than the minimum six-inch main is required by the utility commission.

(Res. of 9-14-09)

Sec. 64. - Water line extension plans.

(a)

Assessment plan (system-wide). Under authority granted in Chapter 224 of the Private Laws of 1927, as amended, or applicable general law, the commission may declare a water line extension to be an assessment project, either pursuant to the submission of a sufficient petition (under Sections 5, 6, and 7) or after a determination that the extension be ordered down (under Section 8). Assessment projects shall be available within public streets only. It shall be the policy of the utility commission that the assessment plan shall not be available in private streets. The extension of service in private streets shall be pursuant to Section 64(c) of the Water System Policy Resolution.

(b)

Feasibility extension plan (outside city). This plan will be available for an extension outside the city limits. Under this plan petitions will be required for extension of water service, and must be in writing and signed by the owner or developer desiring water service. The petition shall be filed with the commission and shall specify the name of the owner, his mailing address, block and lot numbers, name of the person responsible for payment of water bills and type of service required. Each petitioner shall agree to be responsible for the standard connection charge of eight hundred seventy-five dollars ($875.00), capital charge of two thousand five hundred dollars ($2,500.00), and minimum bimonthly charge from the time water becomes available in the line.

Prior to July 1, 2009 the feasibility rate was calculated by taking the current inside city rate times a factor of 2.24. Of this factor 1.50 was used to cover the additional costs incurred for treating and pumping water through the system and the maintenance of the lines outside of the city. The remaining 0.74 was applied to cover the capital costs associated with the financing of the lines that were to be paid back over a twenty-two-year period.

Effective July 1, 2009 the feasibility rate will be calculated in the following manor:

Part 1 —

County Feasibility: In cases where a property is located outside the city limits (and/or townships or villages) of Winston-Salem, Clemmons, Kernersville, Rural Hall or Walkertown a factor of 1.50 will be applied to the inside city rate to cover the additional costs for treating and pumping water through the system and maintenance of the lines outside of the city and will fluctuate as the inside city rate fluctuates.

Annexed Feasibility: In cases where a property is annexed into the city (and/or townships or villages) of Winston-Salem, Clemmons, Kernersville, Rural Hall or Walkertown, a factor of 1.0 will be applied to the inside city rate for Part 1 calculation purposes at the time of annexation and will fluctuate as the inside city rate fluctuates.

Outside County Feasibility: In cases where a property is outside the Forsyth County limits a factor of 2.0 will be applied to the inside city rate for Part 1 calculation purposes to account for treating and pumping water through the system and maintenance of the lines outside the county and will fluctuate as the inside city rate fluctuates.

Part 2 —

County, Annexed and Outside County Feasibility: A debt service factor will be calculated by multiplying 0.74 to the five inside city rate tiers that became effective July 1, 2009. This debt service factor will not fluctuate based on normal October 1, rate increases but will remain constant until a different rate is approved by the commission. Currently those debt service factors are:

The final feasibility rate is created by adding "Part 1" and "Part 2" above.

The water rate for feasibility customers annexed into Winston-Salem, Rural Hall, Clemmons or Kernersville is calculated by taking the current outside city rate minus the current county feasibility rate. This total is then added to the current inside city rate as a surcharge rate for the capital costs not included in the standard charges listed above. The additional surcharge rate will cover the financed capital cost of the project over a twenty-two-year period.

Upon receipt of a sufficient number of petition signers to indicate a self-supporting addition to the water system, studies will be made to determine the feasibility of installing water distribution lines. The feasibility formula shall require that there be a minimum of thirty (30) customers per mile who will sign up during the sign-up period.

If the project is determined to be feasible and approved by the commission, a forty-five-day sign-up period will be specified, during which time the property owners adjacent to the line may apply for a metered service connection. If the connection fee is paid within forty-five (45) days, the customer will receive an eight hundred seventy-five dollar ($875.00) discount on the capital charge set forth in Section 42(b) of the water system policy resolution.

Customers that do not pay the capital charge during the forty-five-day period will be required to pay the full capital charge as indicated in Section 42(b)(1), plus appropriate connection charges, or pay the full special privilege charge based on the current assessment rate, whichever is less, but in no case less than the minimum amount of two thousand five hundred dollars ($2,500.00). All customers requesting connection to an existing line after January 1, 2007, will be charged two thousand five hundred dollars ($2,500.00), and connection fee eight hundred seventy-five dollars ($875.00), or three thousand three hundred seventy-five dollars ($3,375.00).

It is the policy of the commission to make available, to customers under the feasibility conditions, the option of deferring water capital charges (exclusive of water consumption charges and connection charges), and in such cases the deferred payment shall be treated the same as if it were a part of a confirmed assessment roll (no preliminary assessment roll or public hearing required), and all provisions of Chapter 224 of the Private Laws of 1927, as amended or applicable general law relative to confirmed assessments, including without limitations, interest, enforcement, term and lien on property served, shall be applicable.

(c)

Subdivision extension plan.

(1)

General policy. The developer of any subdivision hereafter constructed which is to be served by water provided by the city-county utility commission shall construct at the developer's expense all mains and laterals within the subdivision in accordance with specifications and requirements of the commission. When water mains larger than six (6) inches are required or approved by the utility commission, the applicant may be reimbursed for the difference in cost between a six-inch main and the main size constructed as hereinafter provided. All water mains construction by the applicant shall be conveyed to the city upon completion without cost to the city or the utility commission except as hereinafter provided. This plan shall apply to subdivision applicants within the city and/or county. Customers served by water mains constructed under this plan shall be charged for water used in accordance with their respective applicability contained within Article II, Rates and Billing hereof.

(2)

Water line extension for subdivisions. Applicants will, under this plan, be required to finance the original cost of the extension including those costs associated with the acquisition of right-of-way. When extensions require the purchase of private property to construct and/or maintain a public utility; the applicant may utilize city services to acquire such for the necessary easements after the applicant can show that his attempts at negotiating a settlement have failed. The applicant shall attempt to acquire the necessary right-of-way through reasonable efforts, up to and including procuring a certified appraisal for the value of the easement and offering said value to the owner. In the event the applicant chooses to use city services for property acquisition, the applicant shall deposit with the city a sum of cash equal to the certified appraised value of the property being taken as well as a sum of cash equal to one thousand five hundred dollars ($1,500.00) per property acquisition. If the total of all costs and expenses is less than the amount of the deposit, the city will return the surplus to the applicant; if such cost and expenses amount to more than the deposit, the applicant will pay the difference to the city. After said adjustments have been made, the city will determine whether further refunds will be made to the applicant upon one (1) or both of the following based on where the extension abutting properties of persons, other than the applicant, are located:

a.

Inside the Corporate Limits of the City of Winston-Salem: The city will make a capital charge as prescribed under Section 42 of this resolution for connections to that portion of the extension abutting the property of persons other than the applicant at the time of construction of the extension, and the city will refund to the applicant, annually, all such capital charges collected by the city within a period of fifteen (15) years from the completion of the extension up to but not in excess of the applicant's investment in said portion of the waterline, without interest.

b.

Outside the Corporate Limits of the City of Winston-Salem: The city will make a capital charge as prescribed under Section 64(b) of this resolution for connections to that portion of the extension abutting the property of persons other than the applicant at the time of construction of the extension, and the city will refund to the applicant, annually, all such capital charges collected by the city within a period of fifteen (15) years from the completion of the extension up to but not in excess of the applicant's investment in said portion of the waterline, without interest.

The total of all capital charges applicable under subparagraphs (c)(2)a. and/or (c)(2)b. above will not exceed the applicant's investment (without interest) in the aforesaid portion of the intervening main. The city shall be solely responsible for computing that portion of the applicant's investment in the portion of the intervening main. In order to ascertain the maximum amount of such refund to the applicant, the city shall, upon the completion of the extension, compute that portion of the cost fairly allocable to the property of others abutting thereon, and the amounts so computed by the city shall constitute the maximum amount of the refund which may be paid to the applicant.

The applicant must file with the city its written request for all annual refunds due under the above provisions in paragraphs (c)(2)a. and (c)(2)b. no later than March 1 of each calendar year in order that required funds can be included in the city budget for the fiscal year beginning on July 1 of the same calendar year. Failure to do so by the applicant will prolong any due refunds to the following fiscal year with the same requirements as stated previously, and with no further refunds being made after the fifteen-year period from the completion and final inspection of the said intervening main by the city.

An investment on the part of the applicant will not give him any claim or ownership in the extension nor will it give him the right to charge others for connecting to the extension toward which he contributed.

(Res. of 11-12-01; Res. of 8-12-02; Res. of 6-9-03(1); Res. of 11-8-04; Res. of 8-14-06(2); Res. of 2-9-09; Res. of 10-11-10)

Sec. 65. - Availability and choice of plans; authority of commission to enter into special contracts.

(a)

Where an applicant has a choice of plans for extending water service, the choice must be made at the time the application is filed and the agreement will not be changed thereafter.

(b)

In addition to the plans mentioned above, the commission shall have the authority to enter into contracts for the installation of water mains under special conditions not specifically set forth in this resolution. The commission may participate in the cost of such installations to the extent and in the manner which the commission determines to be appropriate.

Sec. 66. - Extensions in shopping centers, mobile home parks and multifamily developments.

Water lines may be extended into shopping centers, mobile home parks and multifamily developments under the same provisions as in subdivisions, provided the developer dedicates a twenty-foot-wide easement for installation of the lines, and a ten-foot-wide easement for installation for each service line up to and including the meter.

Sec. 67. - Size of pipes.

The minimum size pipe to be installed will normally be six (6) inches in diameter. Should the city desire to install pipe of less than six (6) inches in diameter, it may do so, or should the city desire to install pipe larger than six (6) inches in diameter, the additional investment will be made by the city.

Sec. 68. - Reserved.

Sec. 69. - Regulations relative to new developments.

(a)

In the case of new developments, the city may require the developer to bring the grade of the proposed streets reasonably close to the final grade to be established before construction of the water system is begun under this article.

(b)

An applicant for water service may be required to furnish the city a complete plan of his proposed development, including profiles, with established grades shown thereon.

(c)

Developers will dedicate through their property, without cost to the city, the necessary right-of-way for any extension for water service hereunder.

Sec. 70. - Disposition of unexpended funds.

After the installation of a project has been completed, should there be a balance of unexpended funds remaining from the deposit, such balance will be returned by the city to the depositor.

Sec. 71. - Deposits to be in addition to connection fees.

The deposits made by any applicant for extension of service hereunder do not relieve the applicant from the payment of the connection fees as provided in Section 42 of this resolution.

Secs. 72—79. - Reserved.