Capacity Rental Charge Update
Capital Facilities Charge
The District’s Capital Facilities Charge Capacity Rental Program was implemented at the beginning of January, 2013. The capacity rental charge allocates a charge to customers using more capacity in the water and/or sewer systems than purchased (typically at connection) for the property served. Under the rental program, customers will be charged 1% of the current capital facilities charge for each equivalent residential unit of additional capacity used in the system/s. In order to limit the charge to circumstances of significant additional capacity usage, the Board has established several “buffers” to reduce the impact of capacity rental on customers.
For questions or comments concerning the Capacity Rental Program, contact Morgan Dennis at 253-945-1615, or by Email.
Capital Facilities Charge Capacity Rental Program
Capital Facilities Charge Capacity Rental - Beginning on the date to be established by the Board of Commissioner, the District shall collect capacity rent from property owners using more capacity in the water and/or sewer facilities of general benefit than was acquired for the property served. The rent shall be billed as a rate under authority of applicable law and shall, for each bimonthly period, equal one percent (1%) of the current Capital Facilities Charge ("CFC") for each Equivalent Residential Unit ("ERU"), or portion thereof, of capacity used in the water and/or sewer systems in excess of the amount established by the District as the level of CFC credit owned at the property (measured in ERU's). The amount of the CFC and volume of service associated with an ERU of capacity shall be as set forth in the current fees and charges resolution. Each property served by the water and/or sewer systems shall be allocated a CFC credit based upon the level of CFC capacity acquired for the property. Any excess capacity used in the water and/or sewer systems for which capacity rent shall be collected will be allocated in increments of hundredths (.01) of an ERU. The credit level shall be increased by a factor of twenty (20) percent for each ERU credit allocated in the system (e.g. 6 actual credits equals 7.2 credits for rent calculation purposes). In addition, no rent shall be collected for the first full ERU of excess capacity used after the credit adjustment (e.g. a property with a credit of 2 ERU's would begin paying rent for capacity used in excess of 3.4 ERU's). The amount of excess capacity used shall be further based upon the average of use for the prior twelve (12) month period as determined by the volume of water used at the property. Water determined by the District to have been leaked shall not be included in the calculation of water or sewer system capacity rent. For purposes of determining sewer capacity used, the consumption of water through irrigation meters will not be included in the calculation of sewer system use.
Where multiple water and/or sewer connections exist on a single non-single family residential parcel, capacity rent shall be based on any excess service capacity used for the entire parcel. The capacity rent owing for the period shall be allocated to the service connections based on the service connection's pro rata share of the total consumption at the parcel. Where two or more non-single family residential parcels with a common boundary are held under common ownership, as shall be determined at the discretion of the District, the District will aggregate the credits from all such parcels and levy any capacity rental on the basis of the credits and consumption associated with all such parcels. The capacity rental charge to each service connection on such parcel shall be based on the service connection's pro rata share of the total consumption of the parcel for the period. To avoid the stranding of credits in parcels within a common commercial or multi-family development that are allocated credits (typically where the CFC was paid as an area charge) and are not served by water and/or sewer facilities, the capacity credits for parcels within commercial or multi-family residential developments that do not use water and/or sewer service will be allocated to the other connections within the development in proportion to their pro rata share of the total consumption of capacity within the development.
View complete Resolution 2011-1189 (PDF)