Knowledgebase-Second Developer Tapping into Line Extension


Information Product

Title:Second Developer Tapping into Line Extension
Summary:MTAS was asked about an extension where one developer is paying for the extension and another developer is allowed to tap the extended line free of charge.
Original Author:Darden, Don
Co-Author:
Product Create Date:06/29/2006
Last Reviewed on::12/05/2016
Subject:Utilities--Extension policies; Utilities--Lines and pipes; Utilities--Rates and charges
Type:General
Original Document: Second Developer Tapping into Line Extension.pdf

Reference Documents:

Text of Document: From: Don Darden
Sent: Thursday, June 29, 2006 11:06 AM
Subject: Extension Policy Follow up


This is what I would do about the extension where one developer is
paying for the extension and does not like it because the other developer
is allowed to tap the extended line free of charge.

I would require the first developer to pay for the line extension. Then I
would calculate the number of lots that the second developer is likely to
develop and divide that number into one half the cost of the extension.
Whatever this amount is, I would apply it as a surcharge on each tap given
to the second developer. That way he would be paying one-half of the cost
of the line extension. You cannot deny him the right to tap the line when
it is installed. I am not aware of any law that would prohibit the city
from doing this, and I have discussed it with Sid Hemsley, who said that in
his opinion it would be legal.

This would allow the Town of Chapel Hill to receive all of the income to
which it is entitled from tap fees.


Don J. Darden
Municipal Management Consultant
1-615-532-2588 (or mobile--931-273-2718)
e-mail dardend@tennessee.edu
www.mtas.tennessee.edu