Inactive Tap Fees and Transfer of Inactive Taps


Inactive Taps

Owners of inactive taps, whether assigned or unassigned, should carefully review this Resolution immediately and obtain legal advice if necessary:

Board Resolution – Abandonment of Taps

board-resolution-inactive-tap-policy-09-16

Clarification to Inactive Tap Policy 09-16

Inactive tap owners within the District’s billing records were sent a letter and a copy of the resolution dated October 25, 2016.

August Billing Insert (Inactive Taps)

All inactive taps, regardless of status, will be subject to standard water rates, effective as of January 1, 2017 (Previous to this date inactive taps have been subject to annual fees).

Inactive taps with clear title may be sold to the District for $1,500 (“buy-backs”).

Inactive taps are subject to revocation due to nonpayment of fees and charges, after providing sufficient notice to the owner and a public hearing by the Board of Directors.

Transfer of Inactive Taps

PROVIDE DOCUMENTATION TO THE DISTRICT SO THAT YOUR TRANSFER MAY BE UPDATED FOR BILLING WITHIN 10 DAYS OF YOUR TRANSACTION.

The District does not act as a broker or advisory for selling taps, instead you should consult an attorney, realtor or title professional.  If you are interested in buying or selling an Inactive Tap, please read below and make certain you understand the policies and procedures that will be APPLICABLE TO THE SITUATION before contacting the District.  The Tap Type, by definition, (Active, Inactive, Assigned, Unassigned, connected, unconnected) will determine what fees may or may not apply, as well as the District’s Policies.

Legal guidance should be obtained from your attorney

The District does not have a standard form for transfers of inactive taps, because they often get transferred under different circumstances and the District shall not act as a Recorder.  The District is not obligated to act upon a transfer document if it is incomplete or is otherwise questionable.   A transfer should take into account the following:

1.  Describe the tap number and type of tap in the document (for example Lookout Mountain Water District Inactive Tap no. 12345).

2.   The document used must appear legitimate, intentional, provide typical details such as effective date, type of tap, how it is related to the land (if any, such as Assigned or Unassigned), duly executed by the authorized owner as seller, and buyer, consideration or payment information, and should be notarized.  Both buyer and seller may wish to acknowledge such things as:

  • The parties are aware that the use of the tap is subject to the District’s policies.
  • The parties who will be responsible for any outstanding charges and fees related to the tap and it’s ability to be placed in service /activated/connected.
  • Status of tap (is it sold free and clear of encumbrances, are any warranties or guarantees being offered, etc.).

3.  The buyer should provide billing and contact information so that the District can take action to update the billing account.

4.  Recording such document with Jefferson County Clerk and Recorder.

5.  Supplying  a copy of this recorded document to the District within 10 days so that the District can take action to update the account.

Legal guidance should be obtained from your attorney.  District Policies, Rules and Regulations are available on this website under Publications and Records.

tap-assignment-application

How is a tap valued?
It Depends… Since the District has never sold taps, only the market determines the value of a LMWD tap.  For a buyer, a tap may have very low value or very high value depending on it’s ability to be used at a particular location, alternatives available for that location, and the particular additional costs that may apply to the tap at that location.  A tap may be valued higher or lower by the seller depending upon what conditions a tap was originally acquired and how long the tap has been held.

Estimated range: $1,000 to $40,000.

Public Forum for Inactive Tap Buyers and Sellers

Disclaimer:  The District does not explicitly support or approve of transactions that may result from this post.  The District and its agents cannot act as a broker for tap transfers, reassignments, purchases, or sales of taps.  Please allow 7 to 10 business days to add, remove, or amend your post.

BUY

1 tap:  sggmoore@rocketmail.com

1+ tap:  skigolden@yahoo.com

 

SELL

1 tap:  sopeck@comcast.net

1 tap:  lange234@comcast.net

1 tap: deichorst@comcast.net

2 commercial taps:  steve@milehighoutdoor.com