Washington Suburban Sanitary Commission Procedure/Policy Fact Sheet

Transcription

1 Washington Suburban Sanitary Commission Procedure/Policy Fact Sheet Procedure/Policy Topic: 2014 Legislation: - Washington Suburban Sanitary Commission Definitions; Amount of system development charge MD Code, Public Utilities, and Responsible Team and Group: IRO Team Chief/Group Leader: Gary Gumm Mike Harmer Background and Scope: Bill Summary: This legislation will provide the needed statutory clarification to the definitions under the Public Utilities Article with regards to New Service and Apartment Unit. This legislation will also clarify the language pertaining to Definitions and Imposition of system development charges. Background: The Maryland General Assembly enacted House Bill 883, Chapter 559, System Development Charge legislation during its 1993 Session. This bill provided the enabling authority for the Montgomery and Prince George s County Councils to establish an impact fee (SDC) which will be paid by applicants when an incremental demand is placed on WSSC s treatment, transmission and collection facilities. For the past 20 years the statutory scheme as a whole has operated successfully; however, due to certain ambiguities in the language of the statute it has caused conflicting interpretations between how the Public Utility Article defines the imposition of System Development Charges, and the WSSC staff interpretation of the intent of the law and business practice since the inception of the SDC. The specific statute ambiguities with regards to the imposition of SDC are related to: 1) Construction of a new building or improvement connecting to an existing water and/or sewer Site Utility System and 2) the Apartment Unit definition. GM Recommendation: Support Commission Position: Details:

2 Proposed Amendment Washington Suburban Sanitary Commission Definitions SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND That the laws of Maryland read as follows: Definitions (a) In general. In this subtitle the following words have the meanings indicated. APARTMENT UNIT (b) APARTMENT UNIT MEANS A SINGLE FAMILY HOUSING UNIT THAT: 1. IS ONE OF SEVERAL UNITS WITHIN ONE BUILDING; 2. CONTAINS AT LEAST ONE FULL BATH AND KITCHEN; AND (4)(3) DOES NOT CONTAIN MORE THAN TWO TOILETS. Fixture unit (b)(c) Fixture unit means the assigned value for a plumbing fixture or group of plumbing fixtures, as set forth in the Commission s plumbing and gas fitting regulations, that is standardized with a common lavatory having an assigned value of one based on its probable discharge into the drainage system or hydraulic demand on the water supply. New service (e)(d) New service means: (1) a first time connection of a property to the Commission water or sewer system, INCLUDING A DIRECT CONNECTION OF AN IMPROVEMENT OR BUILDING ON A LOT OR PARCEL OF LAND, CONNECTION THROUGH AN EXISTING ON- SITE SYSTEM, OR BOTH; or (2) a new connection or increased water meter size for a property previously or currently served by the Commission if the new connection or increased meter size is needed because of a change in the use of the property or an increase in demand for service at the property. Toilet (e) Toilet means a water closet, as set forth in the Commission s plumbing and gas fitting regulations. \

3 Proposed Amendment Washington Suburban Sanitary Commission Amount of system development charge SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND That the laws of Maryland read as follows: Amount of system development charge. Calculation of system development charge (a)(1) Each year the Montgomery County Council and the Prince George s County Council shall meet to determine the amount of the system development charge. (2) The amount of the system development charge for a particular property: (i) shall be based on the number of plumbing fixtures and the assigned values for those fixtures as set forth in the Commission s plumbing and gas fitting regulations; (ii) except as provided in item (iii) of this paragraph and subsection (c) of this section, may not exceed $200 per fixture unit; and (iii) for residential properties with five or fewer toilets, shall be based on the number of toilets per dwelling unit and: 1. for each apartment unit, may not exceed $2,000; 2. for dwellings with one or two toilets, may not exceed $3,000; 3. for dwellings with three or four toilets, may not exceed $5,000; 4. for dwellings with five toilets, may not exceed $7,000; and 5. for dwellings with more than five toilets, shall be calculated on a fixture unit basis. (3) ANY DWELLING UNIT THAT CONTAINS MORE THAN TWO TOILETS, OR ANY DWELLING UNIT IN A BUILDING THAT ACCOMODATES SEVERAL DWELLING UNITS ON A LATERAL BASIS ONLY, INCLUDING SEMIATTACHED HOUSES, ROW HOUSES, AND TOWNHOUSES, SHALL BE ASSESSED A SYSTEM DEVELOPMENT CHARGE AS A DWELLING IN ACCORDANCE WITH SUBPARAGRAPH III OF THIS PARAGRAPH, DEPENDING ON THE NUMBER OF TOILETS ((3)(4).When determining the system development charge, the county councils shall consider

4 the actual cost of construction of Commission facilities. Exemptions (b) When determining the system development charge, under criteria established jointly and agreed on by the county councils, the county councils: (1) shall grant a full or partial exemption from the charge for public sponsored or affordable housing as jointly defined and agreed on by the county councils; (2) may grant a full or partial exemption from the charge for revitalization projects; and (3) may grant a full or partial exemption from the system development charge, under conditions set forth by the county councils, for: (i) residential property located in a mixed retirement development as defined in the zoning ordinance of Prince George s County; (ii) residential property located in a planned retirement community as defined in the zoning ordinance of Montgomery County; (iii) elderly housing other than that included in item (i) or (ii) of this item; or (iv) properties used for manufacturing or biotechnology research and development. Maximum charge (c) On July 1, 1999, and July 1 of each succeeding year, the maximum charge, as established in subsection (a)(2) of this section, may be changed by an amount equal to the prior calendar year s change in the Consumer Price Index published by the Bureau of Labor Statistics of the United States Department of Labor for urban wage earners and clerical workers for all items for the Washington, D.C. metropolitan area, or the successor index. Failure to agree on charge (d) If the county councils do not agree on the amount of the system development charge, the system development charge imposed during the previous year shall continue in effect for the following fiscal year. Amount of charge less than necessary (e) If the system development charge established by the county councils is less than the amount necessary to recover the full cost of constructing growth related facilities, the Commission shall identify the part of the cost of that growth that will be paid by current ratepayers as: (1) a percentage of any rate increase; and

5 (2) the annual monetary amount on a typical residential customer s annual water and sewer bill. SECTION 2. AND BE IT FURTHER ENACTED, October 1, that this Act shall take effect Legend: Insertion Deletion