Neighborhood Line Extension Program

Neighborhood Line Extension Program The Bedford Regional Water Authority s (BRWA) Neighborhood Line Extension Program was established as a method by which existing subdivisions within reasonable distance of public water or sewer may have those services extended to their neighborhood. The program involves participation of the residents in a cost-sharing opportunity for the benefit of their immediate community. A complete copy of the BRWA s Neighborhood Line Extension Program package includes the following items: Frequently Asked Questions Neighborhood Line Extension policy Petition for Utility Extension Agreement of Intent Project Checklist Current Rates policy, and Current Rate Information policy. The Project Checklist serves as a step-by-step guide of the process for a Neighborhood Line Extension project. Completed petitions should be submitted directly to the Engineering Department. Funding for Neighborhood Line Extension projects not covered by the collected Project Fees must be budgeted for in the BRWA s Capital Improvement Program, a copy of which can be viewed in the BRWA main office or on the website at www.brwa.com. For questions, please refer to the Frequently Asked Questions section or contact the Engineering Department at (540) 586-7679 Ext. 5 or via email at Engineering@brwa.com. 1723 Falling Creek Road Bedford, Virginia 24523 Phone: 540-586-7679 - Fax: 540-586-5805 Email: Engineering@brwa.com - Website: www.brwa.com R:\Document_Library\NLE Info\Current\2013-07-01 NLE Program Summary.docx

Neighborhood Line Extension Program Frequently Asked Questions Q. What services can the Neighborhood Line Extension Program be used for? A. Public water and public low pressure (force main) sewer. Q. I want to create a new subdivision. Can I use the Neighborhood Line Extension Program to serve the new subdivision with public water and sewer? A. No, the Neighborhood Line Extension Program is for existing neighborhoods. To serve new subdivisions, the Authority has a Developer Program. Q. Is the 70% requirement for the petition based on the number of lots or the number of lot owners? A. The basis is for the number of lots. For example, if someone owns 5 lots they would need to sign the petition 5 times for all of their lots to be counted. Q. Who determines the extent of the neighborhood to be served? A. The Neighborhood Representative, along with the neighbors, determines what areas they would like to be served. All properties between our existing public line and the last lot to be served will be included in the proposed service area (i.e. you would not be able to skip lots). Q. Do we have to pay any money up front? A. No. Money will be requested following the evaluation of the petition. Q. Does signing the petition commit me to any payment? A. No. However, signing the petition indicates your willingness to contribute financially to the project. After fees are requested, failure to receive the required fees by the established deadline may result in the project ceasing to move forward. Q. If the project should cease to move forward after I have paid my fees, will I get my money back? A. Yes, and the BRWA will retain any interest that may have accrued to cover administrative costs. Q. How much will it cost to participate? A. As a minimum each lot will be required to pay the base project fee. There are 3 project fee tiers ranging from $3,500.00 to $6,500.00. Please note fees are subject to change and will be assessed based on our current Rates policy. Please see policy 2.01 Rate Information for a detailed explanation. The Authority must receive fees from 70% of the lots within the service area in order for the project to proceed. 1723 Falling Creek Road Bedford, Virginia 24523 Phone: 540-586-7679 - Fax: 540-586-5805 Email: Engineering@brwa.com - Website: www.brwa.com R:\Document_Library\NLE Info\Current\2013-07-01 NLE FAQ's.docx

Q. What if the project fees collected are not enough to cover the project moving forward? A. Funding for project costs over and above the amount collected by project fees may come from a variety of sources. If the Authority is financially able and has resources budgeted for such projects, they may choose to subsidize the project or some portion thereof. When such resources are not available, the property owners would need to contribute or secure additional funding to cover project costs prior to the project moving forward. Q. What if I don t pay any fees? A. If the project does move forward and you have not paid any fees, you will be required to pay the project fee prior to connecting to the system in the future. The project fee will be assessed at the current rate at the time of payment. Q. Will I be required to connect to the new system? A. Upon completion of the project, each lot within the service area will be subject to the Authority s Mandatory Connection policy. Please see policy 3.10 Mandatory Connection for detailed information. Q. Do I get a free or discounted connection as a Neighborhood Line Extension Program participant? A. No, in addition to the Neighborhood Line Extension project fee each lot will be required to pay all standard New Customer Signup fees upon signing up for service. Please see policy 2.01 Rate Information for detailed information. Q. Why is extension of gravity sewer not available through this program? A. Project fees have been established based on general construction practices that are somewhat predictable for waterlines and pressure sewer. Whereas the routing, design, and construction costs for gravity sewer are highly variable and dependent upon topography. The program and project fees do not easily provide for the variables associated with gravity sewer extensions.

Chapter: System Development Issue (Effective) Date: July 1, 2013 Document Number: 4.20 Approval Date: April 23, 2013 Page 1 of 2 Approved By: Executive Director Section 1. PURPOSE NEIGHBORHOOD LINE EXTENSION Over the years, subdivisions have been created in Bedford County in areas that had no access to public water or sewer service. Subsequent to the creation of these subdivisions, the Bedford Regional Water Authority ( Authority ) has extended public water and/or sewer service to an area near some of the subdivisions so that it has become practical to construct water lines or a low pressure sewer system and provide service to these neighborhoods. This policy establishes the criteria and conditions by which such neighborhood line extensions may occur and provides a methodology by which the cost for such extensions may be paid. This policy shall supersede all previous policies which affect this matter and shall apply only to existing neighborhoods which did not have access to public water and/or sewer at the time of their initial development. Section 2. A. To initiate a line extension under the provisions of this policy, a neighborhood representative shall contact the Authority about the potential project; the Authority Engineering Department ( Engineering ) will then provide the neighborhood representative with a copy of this policy, as well as a blank petition form. The neighborhood representative must then provide this information to the lot owners in their neighborhood and must obtain signatures on the petition from the property owners of at least 70% of the lots and/or parcels which will benefit from the line extension ( Eligible Lots ). The lot owners that sign the petition are thereby agreeing to pay the Project Fee, as established in the Authority s current Rates policy and at such a time as so requested by the Authority, for each of the lots they own. The completed petition bearing the original signatures must be returned to Engineering before any further steps are taken. B. Upon receipt of the petition, Engineering will verify that the appropriate number of signatures were obtained for the defined project area; if the petition is valid, they will then prepare a preliminary cost estimate for the project that will include the construction cost, total related costs (such as Administrative, Engineering, survey, legal, easements acquisition, etc.). Engineering will then present a memorandum to the Water and Sewer Committee ( Committee ) containing the petition, the cost estimate, a map of the area, and a summary about the project. The Committee will review the information, evaluate if the Authority has all of the resources (including, but not limited to, financial, personnel, and Administrative resources) available to commit to the project and determine if they will recommend the project to proceed. If sufficient funding is not available, then the additional funding would need to be subsidized by the property owners, or by any other funding source secured by the property owners, before the project may move forward. If the Committee recommends that the project proceed, the recommendation will be presented to the Authority Board of Directors at the next regularly scheduled Board meeting. C. If the project is voted by the Board of Directors to proceed, Engineering establishes a deadline for the payment of the Project Fees to be received and they will then mail out a letter to each of the property owners informing them of the deadline and soliciting their payments. D. Once the required number of Project Fees have been received and placed into an interest bearing escrow account, Engineering will notify the residents that the Authority will proceed to design

Chapter: System Development Issue (Effective) Date: July 1, 2013 Document Number: 4.20 Approval Date: April 23, 2013 Page 2 of 2 Approved By: Executive Director NEIGHBORHOOD LINE EXTENSION and procure bids for the project. If the required amount of Project Fees has not been paid by the deadline, all of those fees already paid will be fully refunded. The interest earned on the account during this period will be retained by the Authority to defray the Administrative costs incurred. E. After designing and procuring the project, the project will be constructed if the bids are equal to or less than the preliminary cost estimate. If the bids are greater than the amount of the cost estimate, the Authority Board will determine how they would like to proceed with the project. Additional fees may be sought from the lot owners that have already paid, they may be sought from the lot owners that haven t contributed, or they may be allocated from the Authority s reserves. If the additional fees are not obtained and the project does not move forward, the Authority will refund all of the fees that have been paid, less a prorated share of any related costs that have been expended on the project to date. If the project moves forward, the Authority will administer the construction of the project. Once the construction and testing of the entire project is complete and the line is activated, connections will be allowed. For those that connect, the Authority and Virginia Department of Health standards for preventing the interconnection of wells to the public system must be followed. F. Any lot owner who does not pay their Project Fee initially, will not be required to pay the fee until they decide to connect in the future. If any lot owners elect to connect to the lines built as part of a Neighborhood Line Extension until such a point in time as the lines are fully depreciated, they will be required to pay the Project Fee that is current at the time that it is paid, as well as all other fees in the current Rate policy that are in effect at that time. If the property line of a connecting lot is more than 300 feet from the end of an extended water or pressure sewer line, the Project Fee will be waived. Section 3. REVISIONS A. This policy was approved and adopted by the Authority s Board of Directors on April 23, 2013, effective July 1, 2013.

Dated:, 20 Bedford Regional Water Authority 1723 Falling Creek Road Bedford, VA 24523-3137 Attention: Engineering Department PETITION for Utility Extension In accordance with the current Neighborhood Line Extension Policy (the Policy ), this petition is being prepared to notify the Bedford Regional Water Authority of our interest in a water / pressure sewer line extension in our subdivision and/or neighborhood. We, the undersigned owners of real estate situated in the subdivision and/or neighborhood, in the Magisterial District of Bedford, County, Virginia, hereby respectfully petition said Bedford Regional Water Authority to determine if it is feasible to extend the water / pressure sewer lines into our subdivision. We understand that by signing this Petition, each of the signed parties agrees to all the conditions and stipulations as set forth in the Policy, including the commitment to pay the Authority the current Project Fee (as determined in the current rate schedule), should the Authority determine that the project is feasible to construct. After the Project Fee is requested of us by the Authority, and at such time as the necessary seventy percent (70%) of the funds have been deposited into the Authority s escrow account, it is our understanding that the Authority will proceed to design and procure the water / pressure sewer line extension as detailed in the Policy. Included as part of this petition is a list of ALL the property owners in the subdivision that may be effected by this project, whether they are interested in the project or not; those owner who ARE NOT INTERESTED are indicated on the petition with a mark of NO in the signature space next to their name. Petition Revised 2013-07-01.doc

PETITION for Utility Extension Owner s Name (Please Print) Lot # Sect.# Mailing Address Telephone # Signature Petition Revised 2013-07-01.doc

AGREEMENT OF INTENT for a project taking place under the NEIGBORHOOD LINE EXTENSION THIS AGREEMENT OF INTENT, dated for identification, 20, by and between the Bedford Regional Water Authority (the Authority ); and the owners of certain lot(s) in subdivision, Bedford County, Virginia (the Subdivision ) identified by the street address and/or lot number next to their signature(s) at the end of this Agreement (the Owners ), WITNESSETH WHEREAS, the Owners have petitioned the Authority to construct a water / pressure sewer line (the Line ) to provide public drinking water and/ or pressure sewer to lots within the Subdivision; and WHEREAS, the Authority, in accordance with its Neighborhood Line Extension Policy (the Policy ), is prepared to assist the Owners in the financing and construction of the Line; and WHEREAS, the Authority has estimated the cost of the Line to be $. (the Estimate ); and WHEREAS, the policy requires that at least seventy percent (70%) of the lot owners within a finite area (such as a subdivision) have formally petitioned the Authority in writing to extend a water / pressure sewer line and agree to each contribute the Project Fee per lot owned; and WHEREAS, the accumulation of at least seventy percent (70%) of the Project Fees (the funds ) will be placed in an escrow account prior to the Authority initiating the design of the Line. WHEREAS, it is understood that by depositing the Project Fee the Owner is authorizing the Authority to use the deposited money in accordance with the terms of this agreement and that this deposit is representative of the Project Fee as described in the Policy. NOW THEREFORE, the Authority and the Owners are entering into this Agreement setting out their respective duties and responsibilities to provide for the financing and construction of the Line: The Funds must be received by the Authority on or before, 20 (the Deposit Date ); and if not, such as have been received will be refunded to each respective Owner. If the Funds are deposited with the Authority by the Deposit Date, the Authority will proceed with diligence to design the Line and prepare final cost estimates of its construction. The Authority reserves the right, with issuance of notice to the Owners, to cease design on the Line at any time if in its professional judgement there exists a situation which will prevent a timely and/or cost effective completion of the construction of the Line. Agreement of Intent REVISED - 2013-07-01.doc Page 1 of 2 Bedford Regional Water Authority

The Owners and the Authority understand the Authority will only withdraw the Funds to pay for the costs related to the engineering design and construction of the pertinent line facilities, and/or to refund some or all of the Funds deposited therein. Interest earned on the Funds deposited shall be used by the Authority to administer the escrow account. Owners who have paid their Project Fee and wish to connect to the Line can do so by paying the Authority s current Connection Charges. Notices hereunder are given when they are deposited in writing to the address of the Authority at 1723 Falling Creek Road, Bedford, Virginia 24523, and to the owner at the address appearing next to Owner s name at the end of this agreement, with first class postage prepaid or in person at the Authority s office, at the above address. WITNESS the following signatures and seals: BEDFORD REGIONAL WATER AUTHORITY 1723 Falling Creek Drive Bedford, VA 24523 By: Authorized Agent of the Authority OWNER By: Signature Printed Name Mailing Address: Lot Number: Section #: Agreement of Intent REVISED - 2013-07-01.doc Page 2 of 2 Bedford Regional Water Authority

Neighborhood Line Extension Project Checklist Phase 1 Initiation 1. A Neighborhood representative shall contact the Bedford Regional Water Authority about the potential project. 2. 3. 4. 5. BRWA Engineering department will provide the neighborhood representative with a copy of the N.L.E. policy and a blank petition form. Should the interest in the line extension be concentrated in a particular area, the neighborhood may choose to designate a finite area by which the project may proceed. The stipulations on determining the finite area are the properties between the point at which the line exists and the property at which the neighborhood chooses to stop the line must be counted. The Neighborhood representative must then provide the information to the lot owners in their neighborhood, and must obtain signatures on the petition from the property owners of at least 70% of the lots and/or parcels which will benefit from the line extension (the eligible lots ). The lot owners that sign the petition are thereby agreeing to pay the tiered Project Fee as applicable to their lot. 6. The completed petition bearing the original signatures must be returned to the Engineering Department at the BRWA before any further steps are taken. Phase 2 Review 7. Upon receipt of the petition, Engineering will verify that the appropriate number of signatures were obtained for the defined project area. 8. If the petition is valid, BRWA (Engineering) will then prepare a preliminary cost estimate for the project that will include the construction costs, total related costs (such as administrative, engineering, survey, legal, easement acquisition, etc.) 9. Engineering will then present a memorandum to the Water and Sewer Committee containing the petition, the cost estimate, a map of the area, and a summary of the project. 10. The Committee will review the information, evaluate if the BRWA has all of the resources (including but not limited to: financial, personnel and administrative resources) available to commit to the project, and determine if they will recommend the project to proceed. Neighborhood Waterline Extension Project Checklist - 2013-07-01.doc Page 1 of 4 Bedford Regional Water Authority

Phase 3 Recommendation 11. If the Committee recommends that the project proceed, the recommendation will be presented to the BRWA Board of Directors at the next regularly scheduled Board meeting 12. The project must be voted by the BRWA Board of Directors to proceed. 13. If the vote passes, then BRWA Engineering establishes a deadline for the payment of the Project Fees to be received. 14. BRWA Engineering will then mail out a letter to each of the property owners informing them of the deadline and begin soliciting their payments. Phase 4 Project Payment and Commencement 15. If the required number of Project Fees has not been paid by the deadline, all of those fees already paid will be fully refunded. 16. If the Project Fees collected do no not cover the total costs estimated to be incurred by the Project, additional fees may be sought from the lot owners, the Bedford County Board of Supervisors, or they may be allocated from the BRWA s reserves. 17. If the additional fees are not obtained, and the project does not move forward, the BRWA will refund all of the fees that have been collected, less a pro-rated share of any related costs that have been expended for the project to date. 18. If the project moves forward, the BRWA will administer the construction of the project. (At this point the project is considered active.) Phase 5 - Design and Construction 19. Once the required number of Project Fees have been received and placed into an interest bearing escrow account, Engineering will notify the residents that the BRWA will proceed to design and procure contractor construction bids for the project. 20. The BRWA will begin the field surveying of the properties, as well as various engineering requirements including design plans, procurements, and obtaining the necessary permits and approvals from the Department of Transportation and the Department of Health. Neighborhood Waterline Extension Project Checklist - 2013-07-01.doc Page 2 of 4 Bedford Regional Water Authority

21. As design begins, BRWA will determine the most suited location of the proposed line, including which side of the road it will be located on, and which parcels may require an easement to be obtained for the construction of the line. 22. Should the route of the line require easements to be obtained, property owners will receive a copy of a deed of easement, along with a sketch of the property showing the approximate location of the proposed line. 23. The bidding process (procurement), will not begin until design plans have been approved for construction. 24. After the design of the project, the project will move to construction if the bids received are equal to or less than the preliminary cost estimate. 25. A Notice to Proceed is issued by the BRWA to the awarded contractor, determined by the lowest-bid, once all material drawings are reviewed, approved and permits are obtained. 26. The contractor is required to maintain a copy of the latest Bedford Regional Water Authority Master Specifications on-site at all times. An inspector from the BRWA will witness the construction to ensure proper specifications are met and followed. 27. Other tests may be required to ensure that installation, materials, etc. are in accordance with the BRWA Master Specifications (Pressure Tests, Soil Compaction Tests, Air/Vacuum Tests and Bactin Tests) 28. Once the construction and testing of the entire project is complete and the line is activated, connections will be allowed. Phase 6 Financial 29. The Project Fee, Facility Fee, Connection Fee, Application Fee, Deposit, and Meter Fee must be collected prior to the connection for service. 30. Any lot owner who does not pay their Project Fee initially will not be required to pay the fee until they decide to connect in the future. If any lot owners elect to connect in the future, they will be required to pay the Project Fee and all other applicable fees at their current rate at the time of connection. Neighborhood Waterline Extension Project Checklist - 2013-07-01.doc Page 3 of 4 Bedford Regional Water Authority

Phase 7 Construction Closeout and Activation 31. If a property owner would like to connect to the system and become a BRWA customer, the BRWA may begin accepting signups once construction is underway. Property owners will need to come into the BRWA s office to sign up for service. 32. To follow Virginia Department of Health regulations in avoiding potential cross connection, a BRWA representative must verify the disconnection from the existing well service and connection to the public service. 33. The property owners appointed plumber should be present when the meter is placed and the water service is turned on. This will require the homeowner to co-ordinate the plumbing work, several working days in advance, with the BRWA. 34. Upon completion of the project construction, every effort will be made by the contractor, under instruction from the BRWA, to restore effected property to equal or better condition. 35. Please note that the contractor will make a concentrated effort to sow grass seed in all the disturbed areas; however, it may take a few months before a good stand of grass will cover the areas where the line has been installed. If the seed has not taken by a substantial amount of time, we will have the contractor come back and reseed the bare spots at that time. 36. Upon completion of the project, the contractor is required to submit a letter of warranty for materials and workmanship. This warranty will be active for one year following the issued date of the Certificate of Completion for the Neighborhood Line Extension Project. Neighborhood Waterline Extension Project Checklist - 2013-07-01.doc Page 4 of 4 Bedford Regional Water Authority

Chapter: Customers Issue (Effective) Date: July 1, 2013 Document Number: 2.00 Approval Date: March 26, 2013 Page 1 of 5 Approved By: Board of Directors Section 1. PURPOSE RATES The policy is to document the current rates of the Bedford Regional Water Authority ( Authority ). When the Authority was established, it was agreed that the rates would be equalized over a ten (10) year period. By July 1, 2023 it is the intention of the Authority that customers in the Town of Bedford and the County of Bedford will have the same rates. Section 2. EXISTING CUSTOMER FEES Monthly Usage Forest, Lakes, Stewartsville, and Montvale Service Areas Center Service Area Inside Town of Bedford Adjacent to Town Water Sewer Total Water Sewer Total Water Sewer Total Commodity Charges per 1000 gallons - Residential First 3,000 $5.36 $7.00 $12.36 $4.35 $5.66 $10.01 $6.23 $8.14 $14.38 Next 7,000 $5.36 $7.00 $12.36 $3.30 $5.66 $8.96 $4.71 $8.14 $12.86 Over 10,000 $5.36 $7.00 $12.36 $2.50 $5.25 $7.75 $3.52 $7.54 $11.06 Commodity Charges per 1000 gallons - Commercial First 3,000 $5.36 $7.00 $12.36 $5.60 $7.30 $12.90 $8.14 $10.61 $18.75 Next 7,000 $5.36 $7.00 $12.36 $4.25 $7.30 $11.55 $6.11 $10.61 $16.72 Next 30,000 $5.36 $7.00 $12.36 $3.20 $6.76 $9.96 $4.55 $9.81 $14.36 Next 60,000 $5.36 $7.00 $12.36 $3.05 $6.36 $9.41 $4.34 $9.21 $13.56 Next 100,000 $5.36 $7.00 $12.36 $2.90 $5.90 $8.80 $4.15 $8.51 $12.67 Over 500,000 $5.36 $7.00 $12.36 $2.65 $5.07 $7.72 $3.70 $7.27 $10.97 Commodity Charges per 1000 gallons Industrial Min. 400,000 $5.21 $6.90 $12.11 $2.92 $5.40 $8.32 $2.92 $5.40 $8.32 Min. 1,000,000 $5.21 $6.90 $12.11 $2.46 $4.61 $7.07 $2.46 $4.61 $7.07

Chapter: Customers Issue (Effective) Date: July 1, 2013 Document Number: 2.00 Approval Date: March 26, 2013 Page 2 of 5 Approved By: Board of Directors Meter Size (Gallons included in minimum) Forest, Lakes, Stewartsville, and Montvale Service Areas RATES Center Service Area Inside Town of Bedford Adjacent to Town Water Sewer Total Water Sewer Total Water Sewer Total Monthly Base Charge 5/8'' $11.00 $11.50 $22.50 $2.50 $10.84 $13.35 $2.50 $10.84 $13.35 3/4'' $14.50 $15.20 $29.70 $3.30 $11.84 $15.15 $3.30 $11.84 $15.15 1'' $17.90 $18.90 $36.80 $4.33 $18.43 $22.76 $4.33 $18.43 $22.76 1-1/2'' $26.60 $27.60 $54.20 $6.66 $33.77 $40.43 $6.66 $33.77 $40.43 2'' $36.30 $37.30 $73.60 $10.16 $52.96 $63.12 $10.16 $52.96 $63.12 3'' $55.70 $58.20 $113.90 $17.48 $98.39 $115.87 $17.48 $98.39 $115.87 4'' $82.60 $87.60 $170.20 $33.30 $169.04 $202.34 $33.30 $169.04 $202.34 6'' $136.40 $146.40 $282.80 $66.60 $337.98 $404.58 $66.60 $337.98 $404.58 Minimum Charge Residential 5/8'': 2,000 $15.68 $30.41 $46.09 $23.56 $41.02 $64.58 3/4'': 3,000 $23.93 $33.52 $57.45 $35.94 $44.13 $80.07 N/A 1'': 9,000 $32.18 $36.62 $68.80 $48.32 $47.23 $95.55 1-1/2'': 17,000 $52.78 $52.00 $104.78 $79.06 $62.61 $141.67 Minimum Charge Commercial 5/8'' 2,000 $20.84 $37.37 $58.21 $31.42 $51.59 $83.01 3/4'' 3,000 $31.81 $40.48 $72.29 $47.95 $54.70 $102.64 1'' 9,000 $42.78 $43.58 $86.36 $64.47 $57.80 $122.27 1-1/2'' 17,000 $70.19 $58.96 $129.15 $105.76 $73.18 $178.94 N/A 2'' 28,000 $103.06 $77.50 $180.56 $155.31 $91.72 $247.03 3'' 81,000 $256.70 $120.76 $377.46 $413.20 $144.27 $557.46 4'' 149,000 $443.23 $182.59 $625.82 $671.08 $196.81 $867.89 6'' 465,000 $1,211.83 $336.97 $1,548.80 $1,268.61 $351.19 $1,619.80

Chapter: Customers Issue (Effective) Date: July 1, 2013 Document Number: 2.00 Approval Date: March 26, 2013 Page 3 of 5 Approved By: Board of Directors Section 3. NEW CUSTOMER SIGNUP FEES Customer Type or Meter Size Forest, Lakes, Stewartsville, and Montvale Service Areas RATES Center Service Area Inside Town of Bedford Adjacent to Town Water Sewer Total Water Sewer Total Water Sewer Total Deposits Residential $125 $125 $250 $125 $125 $250 $125 $125 $250 Non-Residential $425 $425 $850 $425 $425 $850 $425 $425 $850 Facility Fees 5/8'' $2,500 $3,500 $6,000 $2,500 $3,500 $6,000 $2,500 $3,500 $6,000 3/4'' $3,600 $5,000 $8,600 $3,600 $5,000 $8,600 $3,600 $5,000 $8,600 1'' $6,300 $8,700 $15,000 $6,300 $8,700 $15,000 $6,300 $8,700 $15,000 1-1/2'' $12,000 $16,000 $28,000 $12,000 $16,000 $28,000 $12,000 $16,000 $28,000 2'' $25,000 $35,000 $60,000 $25,000 $35,000 $60,000 $25,000 $35,000 $60,000 3'' $45,000 $65,000 $110,000 $45,000 $65,000 $110,000 $45,000 $65,000 $110,000 4'' $75,000 $100,000 $175,000 $75,000 $100,000 $175,000 $75,000 $100,000 $175,000 6'' $125,000 $175,000 $300,000 $125,000 $175,000 $300,000 $125,000 $175,000 $300,000 8'' $300,000 $420,000 $720,000 $300,000 $420,000 $720,000 $300,000 $420,000 $720,000 10'' $450,000 $630,000 $1,080,000 $450,000 $630,000 $1,080,000 $450,000 $630,000 $1,080,000 Connection Fees (Water / Sewer) 5/8" & 4" $1,000 $1,000 $2,000 $1,000 $1,000 $2,000 $1,000 $1,000 $2,000 3/4" & 4" $1,100 $1,000 $2,100 $1,100 $1,000 $2,100 $1,100 $1,000 $2,100 1" & 6" $1,200 $1,200 $2,400 $1,200 $1,200 $2,400 $1,200 $1,200 $2,400

Chapter: Customers Issue (Effective) Date: July 1, 2013 Document Number: 2.00 Approval Date: March 26, 2013 Page 4 of 5 Approved By: Board of Directors Section 4. OTHER RATES AND CHARGES Section 5. ENGINEERING SERVICE CHARGES Section 6. DESCRIPTION OF RATES RATES Application Fee $25.00 Meter Fee (less or equal to 1", other are at cost) $250.00 Late Payment Charges (Penalties based on balance) 10% Septage Treatment (per 1000 gallons) $60.00 Wastewater Pretreatment Permit $100.00 Unauthorized Connection and Tampering Fee $1,000.00 Processing Fee $50.00 Repeat Service Fee (Meter reread, multiple trips for meter install) $20.00 Meter Test Fee (no charge if defective meter is found) $50.00 Returned Check Fee (insufficient funds) $35.00 Small Grinder Pump Maintenance Fee (per month) $35.00 Project Fee Tier 1 (Neighborhood Line Extensions) $3,500.00 Project Fee Tier 2 (Neighborhood Line Extensions) $5,000.00 Project Fee Tier 3 (Neighborhood Line Extensions) $6,500.00 Base Project Review Fee (per submittal) $350.00 Plan Review Fee Water (per linear foot) $2.60 Plan Review Fee Sewer (per linear foot) $3.20 Extended Plan Review Fee (per submittal) $200.00 Inspection Fee Water (per linear foot) $1.85 Inspection Fee Sewer (per linear foot) $2.30 After Hours and Weekend Inspections (per event) $250.00 Small Grinder Pump Station Review and Inspection (per unit) $300.00 Large Pump Station Review and Inspection (per unit) $2,000.00 Fire flow vault review & inspection (per vault) $1,000.00 Fire flow test (per test) $75.00

Chapter: Customers Issue (Effective) Date: July 1, 2013 Document Number: 2.00 Approval Date: March 26, 2013 Page 5 of 5 Approved By: Board of Directors RATES A description of the rates can be found in the Rate Information policy. Section 7. REVISIONS A. This policy was approved by the Authority s Board of Directors on March 26, 2013, effective July 1, 2013.

Chapter: Customers Issue (Effective) Date: July 1, 2013 Document Number: 2.01 Approval Date: March 26, 2013 Page 1 of 5 Approved By: Board of Directors Section 1. PURPOSE RATE INFORMATION The purpose of this policy to explain how the Bedford Regional Water Authority ( Authority ) implements the adopted Rates policy and to provide explanation for each of the items contained in the Rates policy. Per the consolidation agreement that formed the Authority, it is intended that the rates will be equalized between all of the service areas by July 1, 2023 ( equalization period ). Section 2. EXISTING CUSTOMER FEES A. Commodity Charge: Customers are charged for their water and/or sewer usage depending upon the classification of each user and based upon each gallon of their metered water usage. B. Base Charge: All active accounts are charged a base charge for each service (water, sewer, and irrigation) provided. This charge is to cover the routine Administrative costs associated with servicing an account and is not related to the quantity of water or sewer service provided. The amount of this charge is based on the size of the meter. C. Minimum Charge: The Authority plans to phase out the minimum charge over the equalization period. The minimum charge includes the amount of usage shown in the Rate policy; after this minimum is reached, then all additional usage will be billed at the Commodity Charge described herein. Section 3. NEW CUSTOMER SIGNUP FEES A. Deposit: Each new customer shall maintain a security deposit for each service provided by the Authority and a signed deposit form must be on file. Deposits are maintained as stated in the Deposits policy. B. Facility Fee: Facility fees are charged by the Authority to help offset the capital costs incurred by the Authority to build and maintain capacity in the systems so that it is possible to serve the customer s actual or potential demand. 1. All new connections to the Authority s water and/or sewer systems will require the payment of a Facility Fee before obtaining a building permit from Bedford County or the Town of Bedford. 2. The method used to calculate the Facility Fee is at the discretion of the Authority; the Facility Fee will be determined based on one or more of the following methods: a. The size of the water meter serving the connection. In situations where a compound assembly is required: i. The Facility Fee will normally be based on the largest meter of the assembly. ii. Where the purpose of having the large portion of the compound meter is to provide fire protection to the facility, and regular usage will only flow through the small portion of the compound meter, then the Water Facility Fee may be based upon the largest meter size in the assembly and the Sewer Facility Fee may be based upon the smallest meter size of the assembly. The Authority, however, reserves the right to assess the Sewer Facility Fee based on the largest meter in the assembly. b. Based upon an Equivalent Residential Connection (ERC):

Chapter: Customers Issue (Effective) Date: July 1, 2013 Document Number: 2.01 Approval Date: March 26, 2013 Page 2 of 5 Approved By: Board of Directors RATE INFORMATION i. One ERC is equal to an average daily consumption of 200 gallons of water. ii. The normal demand will be used to determine the average daily consumption, provided that all necessary information is available to the Authority. Normal demand is defined as consumption for domestic use and excludes any consumptions specific to fire suppression needs. iii. Total demand will be used for determining an appropriate meter and/or compound assembly size. Total demand is defined as (normal demand) + (consumptions specific to fire suppression needs). iv. The minimum Facility Fee is one (1) ERC. C. Connection Fee: This fee is to make the physical connection to the Authority s system(s); it includes the installation of the water service line and/or sewer lateral to the customer s property line, the meter box or cleanout, and all related appurtenances to make service available for use by the customer. 1. The connection fees charged are based on the following: a. Fixed cost: The Connection Fees for small water meters and/or small sewer laterals are based on the meter size or lateral size, according to the current Rates policy. This fee includes all costs associated with making the connections on the same side of the road as the water main or sewer line, any road bore that is required to cross underneath a twotravel-lane road, and any water or sewer lines less than 100 feet in length. b. Actual cost: Any water meter larger than 1-inch, or any sewer lateral connection larger than 6-inches, or any connection that requires crossing a road wider than two-travel-lanes and/or lines longer than 100 feet, or any connection that involves connecting the service line to a watermain that is under a travel lane of a road will be billed at the current billing rates for labor and equipment, and the actual cost of the materials, supplies, and any contracted services used for the installation (not at a fixed cost). 2. No Connection Fees are charged if meter base assemblies are installed by the developer as part of a new development. 3. Meter base assemblies that are two-inches and smaller may be installed by the Authority. Larger installations may be designed and installed under the direct supervision of the Authority. Section 4. OTHER CHARGES AND FEES A. Application Fee: All new accounts are charged an Application Fee at the time the account is opened. The fee is charged for each service (water/sewer) provided. B. Meter Fee: 1. All new connections are charged a Meter Fee. This fee covers the costs of the water meter that is installed inside the meter box. All meters are to be provided by, or approved by, the Authority. a. For meters 1-inch and less, the charge will be the current Meter Fee, according to the Rates policy. b. For meters larger than 1-inch, the charge will be based on the actual cost of the meter at the time the account is opened.

Chapter: Customers Issue (Effective) Date: July 1, 2013 Document Number: 2.01 Approval Date: March 26, 2013 Page 3 of 5 Approved By: Board of Directors RATE INFORMATION C. Late Payment Charges and Procedures: The Authority will assess a late charge on all accounts when the payment is not received within 30 days of the billing date noted. At the time the late payment charges are assessed, a notice is prepared and mailed or email notifications are sent to customers receiving electronic statements; this notice warns that the water service will be discontinue if the outstanding balance is not paid by the specified date. This date is typically 15 days after the due date. D. Septage Treatment Charge: The Authority provides treatment for the waste from septic tanks that have been pumped out by reputable sewage haulers at its Moneta Wastewater Treatment Plant. These haulers must have an account setup with the Authority and follow the current procedures that are documented in the Septage policy. E. Wastewater Pretreatment Permit Fee: This fee will be charged for the issuance of new wastewater pretreatment permits in accordance with the Authority s Fats, Oils, and Grease policy and program. The permit shall be valid for a period of 3 years. The permit fee also applies to the renewal of expiring permits. F. Unauthorized Connection and Tampering Fee: 1. This fee will be charged, at the discretion of the Authority, where an Unauthorized Connection has been made as follows: a. A customer has turned on a water meter to restore water service after the service was disconnected by the Authority for nonpayment. b. A customer, or other entity, other than the Authority, has obtained water and/or sewer service prior to all applicable fees and/or charges being paid to obtain service and/or has installed a meter or other apparatus in a meter setting to gain access to public water/sewer. c. A connection is in violation of the Cross Connections Regulations and/or policies. d. A connection is in violation of the Pretreatment Regulations and/or policies. 2. This fee will be charged, at the discretion of the Authority, where tampering has been found without prior written consent by the Authority: a. The addition, removal, or modification of any water or sewer facilities owned by the Authority. b. The modification of the grade in an easement owned or maintained by the Authority without prior written consent of the Authority. c. The installation of prohibited items inside Authority easements such as structures, trees, or other prohibited items. G. Processing Fee: If a customer has not paid the outstanding balance on an account by the cutoff date nor contacted the Authority to make arrangements to have the balance paid, the water service will be cut off. Before service is restored the outstanding balance due, all Late Payment Charges, and a Processing Fee must be received in the Authority s office located at 1723 Falling Creek Road in Bedford. Authority personnel will not collect unpaid funds from customers at the service location. H. Repeat Service Fee: A Repeat Service Fee is assessed when the Authority s staff must make additional trips to install a new meter and turn on the water service because the connections to the

Chapter: Customers Issue (Effective) Date: July 1, 2013 Document Number: 2.01 Approval Date: March 26, 2013 Page 4 of 5 Approved By: Board of Directors RATE INFORMATION Authority meter base have not been made or have been improperly installed or for multiple trips to a customer s premise to re-read a water meter per the customer s request. I. Meter Test Fee: When a customer requests the Authority to test a meter and the meter accuracy is within ± 5% accuracy, a Meter Test Fee will be charged. J. Returned Check Fee: There will be a charge assessed for each check returned, or credit card that is charged back, by the financial institution. If the financial institution should charge the Authority more than the current Returned Check Fee, according to the Rates policy, then the amount assessed will be the actual charge to the Authority by the financial institution. K. Small Grinder Pump Maintenance Fee: In accordance with the Small Grinder Pump Agreement, customers that use a small grinder pump to connect to the Authority s sewer system have the option of contracting with the Authority to maintain their pumps. All users that accept the agreement will be responsible for paying this fee. L. Project Fee: As defined in the Authority s Neighborhood Line Extension policy, there will be a charge per lot assessed for each lot if the requisite terms and conditions of the policy are met for a water line or low pressure sewer system extension. The fees are tiered, based on the length of property that fronts the water or low pressure sewer line. If the frontage is 100 feet or less the fees is a tier 1 fee, if the frontage is more than 100 feet but less than 200 feet the project fee would be a tier 2 fee, and if the frontage is 200 feet or more the fee would be a tier 3 fee. The length of the frontage will be determined by the recorded plat or deed for the property in question. If more than one side of the property adjoins the proposed pipeline, the greater of the sides will be used to determine the frontage. The fee for a gravity sewer line extension shall be determined at the time of neighborhood interest. Section 5. ENGINEERING SERVICE CHARGES A. Base Project Review Fee: This fee is charged for the initial submittal of any design plans or site plans requiring the Authority s review and approval. This fee will be credited toward the plan review fee(s) after the initial comments are issued. B. Plan Review Fee - Water: This fee is charged for reviewing proposed water design plans. The fee is charged per foot, based on the horizontal length shown on the design plans, for waterlines 3-inches in diameter and greater. This fee is to cover the administrative expenses related to development projects. C. Plan Review Fee - Sewer: This fee is charged for reviewing proposed sewer design plans. The fee is charged per foot, based on the horizontal length shown on the design plans; service laterals are excluded. This fee is to cover the administrative expenses related to development projects. D. Extended Plan Review: If more than two (2) submittal reviews are necessary for a project, this fee is assessed on the third (3rd) submittal and for each subsequent submittal thereafter. This applies to preliminary plans, master plans, site plans, plats, design plans, shop drawing submittals, as-built drawings, or any other item submitted for Authority approval. This fee is to

Chapter: Customers Issue (Effective) Date: July 1, 2013 Document Number: 2.01 Approval Date: March 26, 2013 Page 5 of 5 Approved By: Board of Directors RATE INFORMATION cover the administrative expenses related to development projects, above and beyond the regular plan review fee(s). E. Inspection Fee - Water: This fee is charged for inspecting the construction of the water related facilities of a project. The fee is charged per foot, based on the horizontal length shown on the design plans, for waterline 3-inches in diameter and greater. F. Inspection Fee - Sewer: This fee is charged for inspecting the construction of the sewer (gravity and pressure) related facilities of a project. The fee is charged per foot, based on the horizontal length shown on the design plans. G. After Hours and Weekend Inspections: This fee is charged if project inspection is needed after the Authority s normal business working hours or on weekends. Agreement by the Authority is required prior to scheduling or approving any after-hours inspection work. H. Small Grinder Pump Station Review and Inspection: This fee is charged for the review of submittals for small grinder pumps and appurtenances, the inspection of the installation of the pump station and appurtenances, and/or the startup of the pump station when the user executes the agreement in accordance with the Authority s Small Grinder Pump Agreement policy. I. Large Pump Station Review and Inspection: This fee is charged for the review of design plans submitted for pump stations that must meet the requirements shown in the Wastewater Lift Station Requirements policy. J. Fire Flow Vault Review and Inspections: This fee is charged for reviewing proposed construction plans for a Fire Flow Meter Vault and for the inspection related to the installation. This fee is to cover the administrative expenses related to development projects. K. Fire Flow Test: When a Fire Flow Test is requested to obtain fire flow availability for a specific area or from a specific hydrant, this fee is charged. This fee includes all labor, part, materials, and the cost of the water used to perform the test. Section 6. REVISIONS A. This policy was approved and adopted by the Authority s Board of Directors on March 26, 2013, effective July 1, 2013.