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Capacity Rental
Charge Program Begins January 1, 2010
In order to ensure that District
customers pay their fair share of the costs of components of the water and
sewer system infrastructure that provide general benefit to the respective
systems, the District has established a program that will allocate a
capacity rental charge to commercial customers (i.e. non-single family
residential property owners) who use more capacity in the water or sewer
system than was purchased for the property.
The use of excess capacity will be determined by
comparing records that reflect the level of water and sewer system capacity
owned by a property, typically acquired at the time of connection, against
water meter readings that show the quantity of water consumed at the
property during a bimonthly billing period.
Under
the rental program, the District will collect 1% of the cost of the Capital
Facilities Charge for each Equivalent Residential Unit (“ERU”) of water
and/or sewer service of excess capacity used during the two month billing
period.
An ERU is the amount of sewer or water system
capacity used by the average single family residence.
The District will use a “rolling” twelve month
period to determine the level of excess use.
The rolling average will level demand and, by
reducing the impact of peak consumption periods on the excess capacity
calculation, will have the effect of reducing the amount of rent burden on
customers.
With an ERU costing approximately three to four
thousand dollars for each system, the rent for an ERU will be fifteen to
twenty dollars per month.
The capacity rental program was originally set to begin in 2009.
To make certain that the data that supported the determination of
paid capacity was accurate, as well as to fine tune some of the
considerations for multi-use parcels, the Board delayed the program until
2010. It is not expected to create a
significant burden on most commercial customers, however, customers are free
to come in to Development Services and purchase additional capacity in the
system to avoid, or limit, future system rent obligations.
Water conservation will also lower, or eliminate, rent burden on both
the water and sewer side of the bill and is encouraged.
If you have questions, please call Morgan Dennis, at 253-945-1615.
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