(1) Assessment Procedure. Special assessment districts for the construction of sewer mains may be formed, and parcels assessed for such construction, in compliance with AS 29.46.

(2) Amount of Assessment. Each parcel in a special assessment district shall be assessed its pro rata share of the assessed project cost of the sewer main serving that parcel.

(3) Payment of Assessments. Assessments are due upon levy and billing; provided, that the assessments may be paid in installments in a manner determined by the City Manager or designee with the approval by the City Council. Assessments payable in installments shall bear interest at the rate of interest on bonds issued to finance the construction or, when funds from another source are used to finance the cost of the sewer, at the legal rate of interest set by the City Council at the time the assessment is levied.

(1) General. An owner of a parcel not served by sewer facilities of the City, and not included in a special assessment district for the construction of a sewer main, may obtain service by constructing a sewer main at his/her own expense and contributing the constructed facilities to the City in accordance with this section.

(2) Costs of Construction. The costs of construction to be borne by a person constructing a sewer main extension under this section shall include (i) the cost of constructing the sewer main; (ii) design, inspection, and contract administration by registered professional engineer; (iii) all necessary permits required by applicable provision of zoning, building, and public health and safety codes; and (iv) plan review, construction observation, and testing and inspection by the City.

(3) Performance and Payment Bond. A person constructing a sewer main under this section shall furnish for the benefit of the City a performance and payment bond in a principal amount equal to the estimated cost of constructing the sewer main, to assure completion of construction free of all liens.

(4) Warranty. A sewer main constructed under this section is subject to warranties for workmanship and materials for two years, commencing with written acceptance of the sewer main by the City. If defects in workmanship or materials are discovered during the two-year warranty period, the City shall notify the person who constructed the sewer main of the defects. That person shall then make timely repairs or corrections of the defects. However, the City may make emergency repairs of defects without notice and assess the cost thereof to the person who constructed the facilities. Upon acceptance of the sewer main by the City, the person who constructed the sewer main shall furnish the City with a bond in a principal amount equal to 10 percent of the actual construction cost of the sewer main, to assure performance of the warranty.

(5) As-Built Drawings. A person constructing a sewer main under this section shall retain the services of a professional engineer registered in the State of Alaska to design, survey and inspect the construction, and to prepare as-built drawings of the construction. The as-built shall be referenced to existing platted horizontal and vertical monuments on file in the Aleutian Recording District. The as-built drawings shall conform to standards adopted by the City, and shall be submitted to the City for approval before City acceptance of the sewer main.

(6) Construction Standards. The design and construction of a sewer main under this section shall conform to the design criteria of the City and the State of Alaska in effect at the time construction of the sewer main commences. The sewer main shall be extended along the entire frontage of each parcel to be served unless, upon the written application of the engineer for the person constructing the sewer main, the City finds there will be no need to extend the sewer main beyond the last parcel to be served. If such a waiver is granted, the sewer main shall extend at least 10 feet along the frontage of the last parcel to be served. During construction, the City representative shall be allowed to inspect the work and advise the contractor of defects.

However, the failure of the City representative to inspect or advise the contractor of noncompliance with standards, specifications or good workmanship shall not subject the City or its representative to any liability.

(7) Inspection. The City shall direct pressure and continuity tests of the sewer main, and test and inspect the service connections after construction is completed. The fee for testing and inspection shall be the City’s actual labor and material cost for testing and inspection performed. The City may require a customer to deposit the estimated inspection cost prior to the inspection. After all inspections and testing are satisfactorily completed, the City shall be paid any balance owed for testing and inspection, and the City will promptly refund any overpayment.

(8) Transfer of Ownership. Ownership of the sewer main and all service connections within City easements or public rights-of-way vest in the City upon City acceptance of the sewer main. The sewer main thereafter shall be maintained by the City, subject to the two-year warranty required by this section.

(9) Reimbursement of Over-Sizing. A person who constructs a sewer main under this section shall be reimbursed by the City for the cost of over-sizing the sewer main when the over-sizing is required by the City to provide service to other customers. The amount of the reimbursement shall be the difference between the cost of materials for the extension required by the City and the cost of materials for a sewer main of size sufficient to serve the parcel for which the sewer main is constructed. The difference in materials cost shall be determined in accordance with a certified cost statement for the construction in a form acceptable to the City.

No reimbursement shall be due unless and until such certified cost statement is submitted to, and approved by, the City within 180 days of the date of the City acceptance of the sewer main.