Pennsylvania Act 2003-57 — GENERAL LOCAL GOVERNMENT CODE (53 PA.C.S.) - POWERS AND DUTIES OF AUTHORITIES

act-2003-0-572003 Pa. Act 57Law

Act text
GENERAL LOCAL GOVERNMENT CODE (53 PA.C.S.) - POWERS AND DUTIES OF
                               AUTHORITIES
                  Act of Dec. 30, 2003, P.L. 404, No. 57              Cl. 53
                             Session of 2003
                               No. 2003-57

     HB 51

                                  AN ACT

     Amending Title 53 (Municipalities Generally) of the Pennsylvania
        Consolidated Statutes, further providing for powers and
        duties of authorities.

        The General Assembly of the Commonwealth of Pennsylvania
     hereby enacts as follows:

        Section 1.  Section 5607(d)(17), (24), (30), (32) and (33) of
     Title 53 of the Pennsylvania Consolidated Statutes are amended
     to read:
      § 5607.  Purposes and powers.
        * * *
        (d)  Powers.--Every authority may exercise all powers
     necessary or convenient for the carrying out of the purposes set
     forth in this section, including, but without limiting the
     generality of the foregoing, the following rights and powers:
            * * *
            (17)  To do all acts and things necessary or convenient
        for the promotion of its business and the general welfare of
        the authority to carry out the powers granted to it by this
        chapter or other law[.], including, but not limited to, the
        adoption of reasonable rules and regulations that apply to
        water and sewer lines located on a property owned or leased
        by a customer and to refer for prosecution as a summary
        offense any violation dealing with rules and regulations
        relating to water and sewer lines located on a property owned
        or leased by a customer. Under this paragraph, an authority
        established by a county of the second class A which is not a
        home rule county shall have powers for the inspection and
        repair of sewer facilities comparable to the powers of health
        officials under section 3007 of the act of May 1, 1933
        (P.L.103, No.69), known as The Second Class Township Code.
        * * *
            (24)  To charge enumerated fees to property owners who
        desire to or are required to connect to the authority's sewer
        or water system. Fees shall be based upon the duly adopted
        fee schedule which is in effect at the time of payment and
        shall be payable at the time of application for connection or
        at a time to which the property owner and the authority
        agree. In the case of projects to serve existing development,
        fees shall be payable at a time to be determined by the
        authority. An authority may require that no capacity be
        guaranteed for a property owner until the tapping fees have
        been paid or secured by other financial security. The fees
        shall be in addition to any charges assessed against the
        property in the construction of a sewer or water main by the
        authority under paragraphs (21) and (22) as well as any other
        user charges imposed by the authority under paragraph (9)
        [but], except that no reservation of capacity fee or other
        similar charge shall be imposed or collected from a property
        owner who has applied for service unless the charge is based
        on debt and fixed operating expenses. A reservation of
        capacity fee or other similar charge may not exceed 60% of
        the average sanitary sewer bill for a residential customer in
        the same sewer service area for the same billing period. Any
        authority opting to collect a reservation of capacity fee or
        other similar charge may not collect the tapping fee until
        the time as the building permit fee is due. Tapping fees
        shall not include costs included in the calculation of [such]
        any other fees[.], assessments, rates or other charges
        imposed under this act.
                (i)  The fees may include any of the following [fee
            components] if they are separately set forth in a
            resolution adopted by the authority [to establish these
            fees]:
                    (A)  Connection fee. [It may] A connection fee
                shall not exceed an amount based upon the actual cost
                of the connection of the property extending from the
                authority's main to the property line or curb stop of
                the property connected. The authority may also base
                the connection fee upon an average cost for
                previously installed connections of similar type and
                size. Such average cost may be trended to current
                cost using published cost indexes. In lieu of payment
                of the [fees] fee, an authority may require the
                construction [and dedication] of those facilities by
                the property owner who requested the connection.
                    (B)  Customer facilities fee. [It may] A customer
                facilities fee shall not exceed an amount based upon
                the actual cost of facilities serving the connected
                property from the property line or curb stop to the
                proposed dwelling or building to be served. The fee
                shall be chargeable only if the authority installs
                the customer facilities. In lieu of payment of the
                customer facilities fee, an authority may require the
                construction of those facilities by the property
                owner who requests customer facilities. In the case
                of water service, the fee may include the cost of a
                water meter and installation if the authority
                provides or installs the water meter. If the property
                connected or to be connected with the sewer system of
                the authority is not equipped with a water meter, the
                authority may install a meter at its own cost and
                expense. If the property is supplied with water from
                the facilities of a public water supply agency, the
                authority shall not install a meter without the
                consent and approval of the public water supply
                agency.
                    (C)  Tapping fee. [It may] A tapping fee shall
                not exceed an amount based upon some or all of the
                following [fee components if they are] parts which
                shall be separately set forth in the resolution
                adopted by the authority to establish these fees. In
                lieu of payment of this fee, an authority may require
                the construction and dedication of only such
                capacity, distribution-collection or special purpose
                facilities necessary to supply service to the
                property owner or owners.
                        (I)  Capacity part. The [fee may] capacity
                    part shall not exceed an amount that is based
                    upon the cost of capacity-related facilities,
                    including, but not limited to, source of supply,
                    treatment, pumping, transmission, trunk,
                    interceptor and outfall mains, storage, sludge
                    treatment or disposal, interconnection or other
                    general system facilities. [Facilities] Except as
                    specifically provided in this paragraph, such
                    facilities may include only those that provide
                    existing service [or will provide future
                    service]. The cost of [existing] capacity-related
                    facilities, excluding facilities contributed to
                    the authority by any person, government or
                    agency, or portions of facilities paid for with
                    contributions or grants other than tapping fees,
                    shall be based upon their [replacement cost or
                    upon] historical cost trended to current cost
                    using published cost indexes or upon the
                    historical cost plus interest and other financing
                    fees paid on [bonds] debt financing such
                    facilities. [In the case of existing facilities,
                    outstanding] To the extent that historical cost
                    is not ascertainable, tapping fees may be based
                    upon an engineer's reasonable written estimate of
                    current replacement cost. Such written estimate
                    shall be based upon and include an itemized
                    listing of those components of the actual
                    facilities for which historical cost is not
                    ascertainable. Outstanding debt related to the
                    facilities shall be subtracted from the cost[,
                    but debt may not be subtracted which is
                    attributable] except when calculating the initial
                    tapping fee imposed for connection to facilities
                    exclusively serving new customers. [Under all
                    cost approaches, the cost of capacity-related
                    facilities shall be reduced by the amount of
                    grants or capital contributions which have
                    financed them. The capacity part of the tapping
                    fee per unit of capacity required by the new
                    customer may not exceed the cost of the
                    facilities divided by the design capacity.] The
                    outstanding debt shall be subtracted for all
                    subsequent revisions of the initial tapping fee
                    where the historical cost has been updated to
                    reflect current cost except as specifically
                    provided in this section. For tapping fees or
                    components related to facilities initially
                    serving exclusively new customers, an authority
                    may, no more frequently than annually and without
                    updating the historical cost of or subtracting
                    the outstanding debt related to such facilities,
                    increase such tapping fee by an amount calculated
                    by multiplying the tapping fee by the weighted
                    average interest rate on the debt related to such
                    facilities applicable for the period since the
                    fee was initially established or the last
                    increase of the tapping fee for such facilities.
                    The capacity part of the tapping fee per unit of
                    design capacity of said facilities required by
                    the new customer shall not exceed the total cost
                    of the facilities as described herein divided by
                    the system design capacity of all such
                    facilities. Where the cost of facilities to be
                    constructed or acquired in the future are
                    included in the calculation of the capacity part
                    as permitted herein, the total cost of the
                    facilities shall be divided by the system design
                    capacity plus the additional capacity to be
                    provided by the facilities to be constructed or
                    acquired in the future. An authority may allocate
                    its capacity-related facilities to different
                    sections or districts of its system and may
                    impose additional capacity-related tapping fees
                    on specific groups of existing customers such as
                    commercial and industrial customers in
                    conjunction with additional capacity requirements
                    of those customers. [In the case of] The cost of
                    facilities to be constructed or acquired[, the]
                    in the future that will increase the system
                    design capacity may be included in the
                    calculation of the capacity part, subject to the
                    provisions of clause (VI). The cost of such
                    facilities shall not exceed their reasonable
                    estimated cost set forth in a duly adopted annual
                    budget or a five-year capital improvement plan[,
                    and the authority in furtherance of the
                    facilities must take any action as follows:]. The
                    authority shall have taken at least two of the
                    following actions toward construction of the
                    facilities:
                            (a)  [obtain] obtained financing for the
                        facilities;
                            (b)  [enter] entered into a contract
                        obligating the authority to construct or pay
                        for the cost of construction of the
                        facilities or its portion thereof in the
                        event that multiple parties are constructing
                        the facilities;
                            (c)  [obtain] obtained a permit for the
                        facilities;
                            (d)  [spend substantial sums or resources
                        in furtherance of the facilities;] obtained
                        title to or condemned additional real estate
                        upon which the facilities will be
                        constructed;
                            (e)  [enter] entered into a contract
                        obligating the authority to purchase or
                        acquire facilities owned by another;
                            (f)  [prepare] prepared an engineering
                        feasibility study specifically related to the
                        facilities, which study recommends the
                        construction of the facilities within a five-
                        year period; [or]
                            (g)  [enter] entered into a contract for
                        the design or construction of the
                        facilities[.] or adopted a budget which
                        includes the use of in-house resources for
                        the design or construction of the facilities.
                        (II)  Distribution or collection part. The
                    [fee] distribution or collection part may not
                    exceed an amount based upon the cost of
                    distribution or collection facilities required to
                    provide service, such as mains, hydrants and
                    pumping stations. Facilities may only include
                    those that provide existing service [or those
                    that will provide future service]. The cost of
                    [existing] distribution or collections
                    facilities, excluding facilities contributed to
                    the authority by any person, government or
                    agency, or portions of facilities paid for with
                    contributions or grants other than tapping fees,
                    shall be based upon [their replacement cost or
                    upon] historical cost trended to current cost
                    using published cost indexes or upon the
                    historical cost plus interest and other financing
                    fees paid on [bonds] debt financing such
                    facilities. To the extent that historical cost is
                    not ascertainable, tapping fees may be based upon
                    an engineer's reasonable written estimate of
                    replacement cost. Such written estimate shall be
                    based upon and include an itemized listing of
                    those components of the actual facilities for
                    which historical cost is not ascertainable. [In
                    the case of existing facilities, outstanding]
                    Outstanding debt related to the facilities shall
                    be subtracted from the cost[, but debt may not be
                    subtracted which is attributable] except when
                    calculating the initial tapping fee imposed for
                    connection to facilities exclusively serving new
                    customers. [In the case of facilities to be
                    constructed or acquired, the cost shall not
                    exceed their reasonable estimated cost. Under all
                    cost approaches, the cost of distribution or
                    collection facilities shall be reduced by the
                    amount of grants or capital contributions which
                    have financed them.] The outstanding debt shall
                    be subtracted for all subsequent revisions of the
                    initial tapping fee where the historical cost has
                    been updated to reflect current cost except as
                    specifically provided in this section. For
                    tapping fees or components related to facilities
                    initially serving exclusively new customers, an
                    authority may, no more frequently than annually
                    and without updating the historical cost of or
                    subtracting the outstanding debt related to such
                    facilities, increase such tapping fee by an
                    amount calculated by multiplying the tapping fee
                    by the weighted average interest rate on the debt
                    related to such facilities applicable for the
                    period since the fee was initially established or
                    the last increase of the tapping fee for such
                    facilities. The distribution or collection part
                    of the tapping fee per unit of design capacity of
                    said facilities required by the new customer
                    [may] shall not exceed the cost of the facilities
                    divided by the design capacity. An authority may
                    allocate its distribution-related or collection-
                    related facilities to different sections or
                    districts of its system and may impose additional
                    distribution-related or collection-related
                    tapping fees on specific groups of existing
                    customers such as commercial and industrial
                    customers in conjunction with additional capacity
                    requirements of those customers.
                        (III)  Special purpose part. [Fees] A part
                    for special purpose facilities shall be
                    applicable only to a particular group of
                    customers or for serving a particular purpose or
                    a specific area based upon the cost of the
                    facilities, including, but not limited to,
                    booster pump stations, fire service facilities,
                    water or sewer mains, pumping stations and
                    industrial wastewater treatment facilities.
                    [Facilities] Such facilities may include only
                    those that provide existing service [or those
                    that will provide future service]. The cost of
                    [existing] special purpose facilities, excluding
                    facilities contributed to the authority by any
                    person, government or agency, or portions of
                    facilities paid for with contributions or grants
                    other than tapping fees, shall be based upon
                    [their replacement cost or upon] historical cost
                    trended to current cost using published cost
                    indexes or upon the historical cost plus interest
                    and other financing fees paid on [bonds] debt
                    financing such facilities. [In the case of
                    existing facilities, outstanding] To the extent
                    that historical cost is not ascertainable,
                    tapping fees may be based upon an engineer's
                    reasonable written estimate of current
                    replacement cost. Such written estimate shall be
                    based upon and include an itemized listing of
                    those components of the actual facilities for
                    which historical cost is not ascertainable.
                    Outstanding debt related to the facilities shall
                    be subtracted from the cost[, but debt may not be
                    subtracted which is attributable] except when
                    calculating the initial tapping fee imposed for
                    connection to facilities exclusively serving new
                    customers. [In the case of facilities to be
                    constructed or acquired, the cost shall not
                    exceed their reasonable estimated cost. Under all
                    cost approaches, the cost of special purpose
                    facilities shall be reduced by the amount of
                    grants or capital contributions which have
                    financed such facilities.] The outstanding debt
                    shall be subtracted for all subsequent revisions
                    of the initial tapping fee where the historical
                    cost has been updated to reflect current cost
                    except as specifically provided in this section.
                    For tapping fees or components related to
                    facilities initially serving exclusively new
                    customers, an authority may, no more frequently
                    than annually and without updating the historical
                    cost of or subtracting the outstanding debt
                    related to such facilities, increase such tapping
                    fee by an amount calculated by multiplying the
                    tapping fee by the weighted average interest rate
                    on the debt related to such facilities applicable
                    for the period since the fee was initially
                    established or the last increase of the tapping
                    fee for such facilities. The special purpose part
                    of the tapping fee per unit of design capacity of
                    such special purpose facilities required by the
                    new customer [may] shall not exceed the cost of
                    the facilities as described herein divided by the
                    design capacity of the facilities. Where an
                    authority constructs special purpose facilities
                    at its own expense, the design capacity for the
                    facilities may be expressed in terms of the
                    number of equivalent dwelling units to be served
                    by the facilities. In no event shall an authority
                    continue to collect any tapping fee which
                    includes a special purpose part after special
                    purpose part fees have been imposed on the total
                    number of design capacity units used in the
                    original calculation of the special purpose part.
                    An authority may allocate its special purpose
                    facilities to different sections or districts of
                    its system and may impose additional special
                    purpose tapping fees on specific groups of
                    existing customers such as commercial and
                    industrial customers in conjunction with
                    additional capacity requirements of those
                    customers.
                        (IV)  Reimbursement [component. An amount
                    necessary to recapture the allocable portion of
                    facilities in order to reimburse the property
                    owner or owners] part. The reimbursement part
                    shall only be applicable to the users of certain
                    specific facilities when a fee required to be
                    collected from such users will be reimbursed to
                    the person at whose expense the facilities were
                    constructed as set forth in [paragraphs (31) and
                    (32).] a written agreement between the authority
                    and such person at whose expense such facilities
                    were constructed.
                        (V)  Calculation of tapping fee [components].
                            (a)  In arriving at the cost to be
                        included in the tapping fee [components], the
                        same cost [may] shall not be included in more
                        than one part of the tapping fee.
                            (b)  No tapping fee may be based upon or
                        include the cost of expanding, replacing,
                        updating or upgrading facilities serving only
                        existing customers in order to meet stricter
                        efficiency, environmental, regulatory or
                        safety standards or to provide better service
                        to or meet the needs of existing customers.
                            (c)  The cost used in calculating tapping
                        fees shall not include maintenance and
                        operation expenses.
                            (d)  As used in this subclause,
                        "maintenance and operation expenses" are
                        those expenditures made during the useful
                        life of a sewer or water system for labor,
                        materials, utilities, equipment accessories,
                        appurtenances and other items which are
                        necessary to manage and maintain the system
                        capacity and performance and to provide the
                        service for which the system was constructed.
                        Costs or expenses to reduce or eliminate
                        groundwater infiltration or inflow may not be
                        included in the cost of facilities used to
                        calculate tapping fees unless these costs or
                        expenses result in an increase in system
                        design capacity.
                            (e)  Except as otherwise provided for the
                        calculation of a special purpose part, the
                        design capacity required by a new residential
                        customer used in calculating sewer or water
                        tapping fees shall not exceed an amount
                        established by multiplying 65 gallons per
                        capita per day for water capacity, 90 gallons
                        per capita per day for sewer capacity times
                        the average number of persons per household
                        as established by the most recent census data
                        provided by the United States Census Bureau.
                        If an authority service area is entirely
                        within a municipal boundary for which there
                        is corresponding census data specifying the
                        average number of persons per household,
                        issued by the United States Census Bureau,
                        the average shall be used. If an authority
                        service area is not entirely within a
                        municipal boundary but is entirely within a
                        county or other geographic area within
                        Pennsylvania for which the United States
                        Census Bureau has provided the average number
                        of persons per household, then that average
                        for the county or geographic area shall be
                        used. If an authority service area is not
                        entirely within a municipal, county or other
                        geographic area within Pennsylvania for which
                        the United States Census Bureau has
                        calculated an average number of persons per
                        household, then the Pennsylvania average
                        number of persons per household shall be used
                        as published by the United States Census
                        Bureau. Alternatively, the design capacity
                        required for a new residential customer shall
                        be determined by a study but shall not
                        exceed:
                                (i)  for water capacity, the average
                            residential water consumption per
                            residential customer, or, for sewage
                            capacity, the average residential water
                            consumption per residential customer plus
                            ten percent. The average residential
                            water consumption shall be determined by
                            dividing the total water consumption for
                            all metered residential customers in the
                            authority's service area over at least a
                            12-consecutive-month period within the
                            most recent five years by the average
                            number of customers during the period; or
                                (ii)  for sewer capacity, the average
                            sewage flow per residential customer
                            determined by a measured sewage flow
                            study. Such study shall be completed in
                            accordance with sound engineering
                            practices within the most recent five
                            years for the lesser of three or all
                            residential subdivisions of more than ten
                            lots which have collection systems in
                            good repair and which connected to the
                            authority's facilities within the most
                            recent five years. The study shall
                            calculate the average sewage flow per
                            residential customer in such developments
                            by measuring actual sewage flows over at
                            least 12 consecutive months at the points
                            where such developments connected to the
                            authority's sewer main.
                                (iii)  All data and other information
                            considered or obtained by an authority in
                            connection with determining capacity
                            under this subsection shall be made
                            available to the public upon request.
                                (iv)  If any person required to pay a
                            tapping fee submits to the authority an
                            opinion from a professional engineer that
                            challenges the validity of the results of
                            the calculation of design capacity
                            required to serve new residential
                            customers prepared under subparagraph (i)
                            or (ii), the authority shall within 30
                            days obtain a written certification from
                            another professional engineer, who is not
                            an employee of the authority, verifying
                            that the results and the calculations,
                            methodology and measurement were
                            performed in accordance with this title
                            and generally accepted engineering
                            practices. If an authority does not
                            obtain a certification required under
                            this subsection within 30 days of
                            receiving such challenge, the authority
                            may not impose or collect tapping fees
                            based on any such challenged calculations
                            or study until such engineering
                            certification is obtained.
                            (f)  An authority may use lower design
                        capacity requirements and impose lower
                        tapping fees for multifamily residential
                        dwellings than imposed on other types of
                        residential customers.
                        (VI)  Separate accounting for future facility
                    costs. Any portion of tapping fees collected
                    which, based on facilities to be constructed or
                    acquired in the future in accordance with this
                    section, shall be separately accounted for and
                    shall be expended only for that particular
                    facility or a substitute facility accomplishing
                    the same purpose which is commenced within the
                    same period. Such accounting shall include, but
                    not be limited to, the total fees collected as a
                    result of including facilities to be constructed
                    in the future, the source of the fees collected
                    and the amount of fees expended on specific
                    facilities. The proportionate share of tapping
                    fees based upon facilities to be constructed or
                    acquired in the future under this section shall
                    be refunded to the payor of such fees within 90
                    days of the occurrence of the following:
                            (a)  the authority abandons its plan or a
                        part thereof to construct or acquire a
                        facility or facilities which are the basis
                        for such fee; or
                            (b)  the facilities have not been placed
                        into service within seven years, or, for an
                        authority which provides service to five or
                        more municipalities, the facilities have not
                        been placed into service within 15 years,
                        after adoption of a resolution which imposes
                        tapping fees which are based upon facilities
                        to be constructed or acquired in the future.
                        Any refund of fees held for 15 years shall
                        include interest for the period the money was
                        held.
                        (VII)  Definitions. As used in this clause,
                    the following words and phrases shall have the
                    meanings given to them in this subclause:
                        "BOD5."  The five-day biochemical-oxygen
                    demand.
                        "Design capacity."  For residential
                    customers, the permitted or rated capacity of
                    facilities expressed in million gallons per day.
                    For nonresidential customers, design capacity may
                    also be expressed in pounds of BOD5 per day,
                    pounds of suspended solids per day or any other
                    capacity-defining parameter that is separately
                    and specifically set forth in the permit
                    governing the operation of the system and based
                    upon its original design as modified by those
                    regulatory agencies having jurisdiction over
                    these facilities. Additionally, for separate fire
                    service customers, the permitted or rated
                    capacity of fire service facilities may be
                    expressed in peak flows. The units of measurement
                    used to express design capacity shall be the same
                    units of measurement used to express the system
                    design capacity. Except as otherwise provided for
                    special purpose facilities, design capacity may
                    not be expressed in terms of equivalent dwelling
                    units.
                        "Outstanding debt."  The principal amount
                    outstanding of any bonds, notes, loans or other
                    form of indebtedness used to finance or refinance
                    facilities included in the tapping fee.
                        "Service line."  A water or sewer line that
                    directly connects a single building or structure
                    to a distribution or collection facility.
                        "System design capacity."  The design
                    capacity of the system for which the tapping fee
                    is being calculated which represents the total
                    design capacity of the treatment facility or
                    water sources.
                (ii)  Every authority charging a tapping, customer
            facilities or connection fee shall do so only pursuant to
            a resolution adopted at a public meeting of the
            authority. The authority shall have available for public
            inspection a detailed itemization of all calculations,
            clearly showing the maximum fees allowable for each part
            of the tapping fee and the manner in which the fees were
            determined[.], which shall be made a part of any
            resolution imposing such fees. A [revised] tapping,
            customer facilities or connection fee may be revised and
            imposed upon those who subsequently connect to the
            system[.], subject to the provisions and limitations of
            the act.
                (iii)  No authority [may] shall have the power to
            impose a connection fee, customer facilities fee, tapping
            fee or similar fee except as provided specifically under
            this section.
                (iv)  A municipality or municipal authority with
            available excess sewage capacity, wishing to sell a
            portion of that capacity to another municipality or
            municipal authority, may not charge a higher cost for the
            capacity portion of the tapping fee as the selling entity
            charges to its customers for the capacity portion of the
            tapping fee. In turn, the municipality or municipal
            authority buying this excess capacity may not charge a
            higher cost for the capacity portion of the tapping fee
            to its residential customers than that charged to them by
            the selling entity.
                (v)  As used in this paragraph, the term "residential
            customer" shall also include those developing property
            for residential dwellings that require multiple tapping
            fee permits. This paragraph shall not be applicable to
            intermunicipal or interauthority agreements relative to
            the purchase of excess capacity by an authority or
            municipality in effect prior to February 20, 2001.
            * * *
            (30)  Where a sewer or water system of an authority is to
        be extended at the expense of the owner of properties or
        where the authority otherwise would construct customer
        facilities referred to in paragraph (24), other than water
        meter installation, [to allow] a property owner shall have
        the right to construct the extension or install the customer
        facilities himself or through a subcontractor approved by the
        authority, which approval shall not be unreasonably withheld.
        The authority [may] shall have the right, at its option, to
        perform the construction itself only if the authority
        provides the extension or customer facilities at a lower cost
        and within the same timetable specified or proposed by the
        property owner or his approved subcontractor. Construction by
        the property owner shall be in accordance with an agreement
        for the extension of the authority's system and plans and
        specifications approved by the authority and shall be
        undertaken only pursuant to the existing regulations,
        requirements, rules and standards of the authority applicable
        to such construction. Construction shall be subject to
        inspection by an inspector authorized to approve similar
        construction and employed by the authority during
        construction. When a main is to be extended at the expense of
        the owner of properties, the property owner may be required
        to deposit with the authority, in advance of construction,
        the authority's estimated reasonable and necessary cost of
        reviewing plans, construction inspections, administrative,
        legal and engineering services. The authority may require
        that construction shall not commence until the property owner
        has posted appropriate financial security in accordance with
        paragraph (23). The authority may require the property owner
        to reimburse it for reasonable and necessary expenses it
        incurred as a result of the extension. If an independent firm
        is employed for engineering review of the plans and the
        inspection of improvements, reimbursement for its services
        shall be reasonable and in accordance with the ordinary and
        customary fees charged by the independent firm for work
        performed for similar services in the community. The fees
        [may] shall not exceed the rate or cost charged by the
        independent firm to the authority when fees are not
        reimbursed or otherwise imposed on applicants. Upon
        completion of construction, the property owner shall dedicate
        and the authority shall accept the extension of the
        authority's system if dedication of facilities and the
        installation complies with the plans, specifications,
        regulations of the authority and the agreement. An authority
        may provide in its regulations those facilities which, having
        been constructed at the expense of the owner of properties,
        the authority will require to be dedicated and which facility
        or facilities the authority will accept as a part of its
        system.
                (i)  In the event the property owner disputes the
            amount of any billing in connection with the review of
            plans, construction inspections, administrative, legal
            and engineering services, the property owner shall,
            within 20 working days of the date of billing, notify the
            authority that the billing is disputed as excessive,
            unreasonable or unnecessary, in which case the authority
            shall not delay or disapprove any application or any
            approval or permit related to the extension or facilities
            due to the property owner's dispute over the disputed
            billings unless the property owner has failed to make
            payment in accordance with the decision rendered under
            clause (iii) within 30 days after the mailing date of
            such decision.
                (ii)  If, within 30 days from the date of billing,
            the authority and the property owner cannot agree on the
            amount of billings which are reasonable and necessary,
            the property owner and authority shall, by mutual
            agreement, appoint a professional of the same profession
            or discipline licensed in Pennsylvania to review the
            billings and make a determination as to the amount of
            billings which is reasonable and necessary.
                (iii)  The professional appointed under clause (ii)
            shall hear evidence and review the documentation as the
            professional in his or her sole opinion deems necessary
            and shall render a decision within 60 days of the billing
            date. The property owner shall be required to pay the
            entire amount determined in the decision immediately.
                (iv)  In the event that the authority and property
            owner cannot agree upon the professional to be appointed
            within 30 days of the billing date, the president judge
            of the court of common pleas of the judicial district in
            which the municipality is located or, if at the time
            there is no president judge, the senior active judge then
            sitting upon application of either party shall appoint a
            professional, who shall be neither the authority engineer
            nor any professional who has been retained by or
            performed services for the authority or the property
            owner within the preceding five years.
                (v)  The fee of the appointed professional for
            determining the reasonable and necessary expenses shall
            be paid by the applicant if the amount of payment
            required in the decision is equal to or greater than the
            original bill. If the amount of payment required in the
            decision is less than the original bill by $2,500 or
            more, the authority shall pay the fee of the
            professional. If the amount of the payment required in
            the decision is less than the original bill by $2,499 or
            less, the authority and the property owner shall each pay
            one-half of the fee of the appointed professional.
                * * *
            [(32)  If a sewer system or water system or any part or
        extension owned by an authority has been constructed at the
        expense of a private person or corporation, the authority may
        charge a tapping fee. The authority shall refund the tapping
        fee or any part of the fee to the person or corporation who
        paid for the construction of the sewer or water system or any
        part or extension of it.]
            (33)  Provisions of paragraphs (30)[,] and (31) [and
        (32)] shall apply to residential customers in a municipality
        where the sewer service is being purchased by the
        municipality or sewer authority from another municipality or
        sewer authority having excess sewage capacity.
        * * *
        Section 2.  Notwithstanding section 5(1) of this act, this
     act shall apply immediately to any connection, customer
     facilities, tapping or similar fees which are increased or
     initially imposed subsequent to the effective date of this
     section.
        Section 3.  Notwithstanding section 5(1) of this act, the
     mandatory refund provisions of 53 Pa.C.S. §
     5607(d)(24)(i)(C)(VI) applicable to tapping fees based upon
     facilities to be constructed or acquired in the future shall
     apply to tapping fees collected subsequent to the effective date
     of this section regardless of when the resolution adopting such
     tapping fees was adopted.
        Section 4.  The following shall apply:
            (1)  The provisions of 53 Pa.C.S. § 5607(d)(24)(i)(C)(I)
        and (V)(e) shall not apply for a period of 15 years after the
        effective date of this section to sewer tapping fees imposed
        by a joint authority having six or more municipal members
        which is prohibited from implementing any increase in sewer
        user fees pursuant to the terms of a contract executed prior
        to January 1, 2003.
            (2)  The provisions of 53 Pa.C.S. §
        5607(d)(24)(i)(C)(V)(e) shall not apply for a period of five
        years after the date of closing of original financing when an
        authority, in order to support the construction of new
        facilities, used original financing which closed on or before
        July 1, 2003, which has a term of at least 15 years and in
        which tapping fees were relied upon to support the debt
        service on the financing.
        Section 5.  This act shall take effect as follows:
            (1)  The amendment of 53 Pa.C.S. § 5607(d)(24), (30),
        (32) and (33) shall take effect in 18 months.
            (2)  The remainder of this act shall take effect
        immediately.

     APPROVED--The 30th day of December, A. D. 2003.

     EDWARD G. RENDELL

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