plawcs
Sewer Service
 Charge System

Revised and Approved                  11 October 2001

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 The Pike Lake Area Wastewater Collection System (PLAWCS) has established this Sewer Service Charge System (SSCS) to pay for all system capital, operation, maintenance, and administrative costs. The following provisions allow PLAWCS to recover capital and operating costs from current and future users of the sanitary sewer collection system.

1. Sanitary sewer hook-up is required for all residences, commercial establishments, and other buildings directly adjacent to the sewer lines of the PLAWCS system.
    

2. Unoccupied , undeveloped or vacant properties are not required to connect or pay sanitary sewer assessments to PLAWCS.
    

3. Property owners are responsible for providing final connection from home or building to the main sewer line. PLAWCS will be building service stubs from the main sewer line into each property served by the initial sewer project construction.
    

4. Single Family homes and 2-unit apartment buildings will be classified as residential property for the purposes or PLAWCS sewer assessments and service charges.
    

5. Institutional, commercial, and multi-residential properties with more than 2 dwelling units will be classified as commercial property for the purposes of PLAWCS sewer assessments and service charges.
    

6. Sewer service connections involve either connecting to a sewer service stub at the property line in the gravity sewer portion of the PLAWCS system, or to an individual sewage lift station on the pressure sewer system.
    

7. Water meters are required for all commercial properties and multi-residential properties including single family properties with boathouses, cabins or separate apartment units. Water meters will be installed and paid for by PLAWCS and be used as a for determining Monthly wastewater quantities.
    

8. Non-consumptive water uses need to be accounted for by individual property owners. This involves water used for lawn sprinkling, car washing, and other non-consumptive water uses. Measurement or recording of water metered and not discharged to PLAWCS will be the responsibility of the property owner. Property owners must submit all measurement data and/or water use records to PLAWCS to have these water quantities deducted from their sewer service charges.
    

9. PLAWCS will annually review all Sewer Access Charges and Sewer service charges and make revisions as needed to ensure adequate revenue sources to meet its financial obligations.

1. Initial Sewer Access Charges will be paid by Assessments on all benefitted properties. The Basic Sewer Access Charges will be the total PLAWCS project costs minus Wastewater Infrastructure Grant monies divided by the total number of properties served by the sewer.
    

2. Commercial sewer users will pay this full Basic Sewer Access Charge. Residential users will pay 80% of the full Basic Sewer Access Charge. Commercial properties will pay a monthly volume in addition to the initial Sewer Access Charge. Water meters will be used to determine the basis for volume Charges.
    

3. Property Owners will have the option of paying all or part of their Initial Sewer access Charge instead of being accessed against their property. Sewer assessments may be paid over a 20 year period with their bi-annual property tax payments.
    

4. Water Meters will be required for Commercial / Institutional / Multi-residential and high water user. Properties generating 6,000 gallons or less of wastewater per month will pay a set rate per quarter for their sewer service. This set rate will be based on a monthly volume of 6,000 gallons times a charge per thousand gallons of wastewater. The higher water users (>6,000 gallons) will be required to have water meters. These users will pay the set rate for 6,000 plus an additional charge for all billed wastewater greater than 6,000 gallons. The additional charge will be the wastewater volume greater than 6,000 gallons multiplied by the debt service cost per thousand gallons.
    

5. The following table shows the estimated initial sewer access charges based on Springsted’s 4/19/99 fiscal evaluation. These Sewer Access Charges and Wastewater volume rates will need to be defined more specifically when the final construction and other costs are determined.


 

Sewer User Category	Initial Sewer Access Charge	Wastewater Volume Use Infrastructure Charge
Residential	$ 7,280 None	None
Commercial  (Includes commercial and multi-residential)	$9,100	$6.50 / thousand gallons for monthly  Volumes over 6,000 gallons

Sewer Service Charges will be collected to pay PLAWCS’ Administrative, Operation, Maintenance, and Replacement costs. These charges will be collected on the basis of wastewater discharged from each connection / property served. There are (3) methods to be determining these charges, dependant upon the type of service users. The following describes these methods.

1. Single Family Residential Users are required to pay a flat rate monthly sewer service charge established by the PLAWCS Board of Directors. This assumes a base rate average use of 6,000 gallons per month or less. Single Family Residential Users, who live away from their homestead property for a continuous period of at least 6 months per year, may be eligible for a discounted monthly sewer service charge. If approved they will be charged ½ of the normal rate between November 1 and April 30^th of the following year. Eligible residents will need to apply in writing to the PLAWCS Board by October 31^st to be granted the rate discount. These discounts will be granted at the discretion of the PLAWCS Board.
    

2. Commercial, multi-residential, institutional and other higher flow users are required to install water meters. Most users would only be charged a "flat rate" per month, based on an estimated base usage of 6,000 gallons per month. All other users on water meters would pay the flat rate plus a charge per thousand gallons for all flow greater than 6,000 per month.
    

3. Seasonal residents will pay ½ the flat rate monthly sewer service charge for a typical full-time residential properties between November1 and April 30th of the following year. Any residences wanting this status will need to make a written request to PLAWCS for approval. Non-homestead status will be used as one of the basis for determining seasonal residential status.

The following table shows the estimated monthly sewer service charges based on Springsted’s 4/19/99 fiscal evaluation. These rates will need to be defined more specifically when the final construction and other costs are determined.
 

 
* This amount of this charge must be reviewed after two years and adjusted upwards as required to meet 20 year financial plan after two years of system operation and annually thereafter.

Residences who have installed a new septic systems since 1995, prior to final certification of assessments to the County Auditor, will be allowed a credit against their property’s initial sewer assessment.

Commercial properties are not eligible for septic system credits. All eligible systems will need to provide a certificate of current compliance with State On-Site Regulations and documentation of system costs. The following guidelines shall be followed for issuing Septic Credits:

1. Maximum Credit Amounts - Maximum credit allowed for existing systems is limited to 75% of the total Residential assessment, or the actual depreciated system cost, whichever is lesser. The minimum Sewer Access Charge assessed will be 25% of the total Residential assessment.
    

2. System Depreciation - All system values will be computed with a factor of 10% depreciation per year until the year that the property is hooked into the sanitary sewer.
    

3. Septic Credits will apply only towards the initial sewer assessment.
    

4. Property owners must submit a letter of request for any septic credits to PLAWCS prior to final certification of assessments to the County Auditor.
    

5. Property owners must submit cost documentation for the existing septic system or recent improvements.
    

1. Properties service with sanitary sewer, after the initial connection period and in future years will be charged on a different basis than existing users. Sewer Access Charge provisions for the two sewer use categories are explained as follows:

   1. Future Residential Properties - Future residential properties will be required to pay an initial sewer access charge based on the full Residential assessment rate plus annual interest charges 3% per year from the date service was first available. The sewer access charge rate would include the benefit of the Grant funding for the 20-year period of the grant only. This sewer access charge will remain in effect until the 20-year period of PFA funding and WIF grant has expired. The full Payment will be required up front before the building permit is issued. Sewer service charges will be on the same basis as the original residential sewer users - a base monthly fee for each typical residential property.

   2. Future Commercial Properties - Future commercial development will be required to pay an initial sewer access charge based on the cost per connection of a commercial assessment rate, without benefit of the Grant. This amount would increase at an interest rate of 3% per year from the date service was first available. The full payment will be required up front before a building permit is issued. Sewer service charges will be on the same basis as the existing commercial properties. Water meters will be required.
       

2. Property owners who wish to pay for a sewer service connection during the initial sewer construction period will have two options to provide for a sewer service stub into their property. Owners need to make a written request to PLAWCS to provide for a sewer service stub into their property. Owners must have lots meeting zoning requirements for a build able lot to be eligible for the two available options. The two options available are described as follows:

   1. Property owners may pay their sewer access charge and be assessed. PLAWCS will build a sewer service stub into their property from the nearest PLAWCS sewer and owners will not have to pay Sewer Service Charges until the sewer service is being used.

   2. Property owners may pay to have a sewer service stub constructed into their property during the initial system construction for a service stub fee of $500. Sewer Access Charges and Sewer Service Charges will not have to be paid until the property is built upon.