ARTICLE VI: USER CHARGE SYSTEM
Section 1. Introduction:
This article describes how the capital and operational costs of the Essex sewer system are allocated. The allocation of the capital costsand operational costs are based on estimates at this time that will be adjusted once the actual costs of the system are known.
Section 2. Betterment Charges:
The capital cost of the sewer will be distributed among the sewer users. The Town itself will own the largest portion of the sewer capacity that is available. Per Article 11 of the May 2000 Town Meeting, the Town will pay 28% of the project capital costs and the other sewer users will pay the remaining 72% of the costs. The Town’s portion will be paid directly from tax revenues or other sources of sewer users income. The remaining 72% will be paid in accordance with an allocation method proposed in the Task 2 Report. This allocation method is described below.
a. Sewer Units
Sewer units will be calculated as follows:
1. Each single-family residence shall be assessed as one sewer betterment unit (i.e., one sewer unit). Each two-family house shall be assessed as 1.5 sewer units. Each three-family house shall be assessed as two sewer units. Each multi-family, commercial, municipal, non-profit, industrial, tax-exempt, governmental, or other non-residential use sewer connection shall be charged the following number of sewer units based on actual water consumption during 1998:
SCHEDULE OF BETTERMENT UNITS
Water Consumption less than 300 gpd |
1.5 Sewer Betterment Units |
Water Consumption at least 300 gpd and less than 600 gpd |
2 Sewer Betterment Units |
Water Consumption at least 600 gpd and less than 1,200 gpd |
3 Sewer Betterment Units |
Water Consumption at least 1,200 gpd and less than 2,400 gpd |
4 Sewer Betterment Units |
Water Consumption at least 2,400 gpd and less than 4,800 gpd |
5 Sewer Betterment Units |
Water Consumption at least 4,800 gpd or higher |
See Equation 1 |
Equation 1: 6 + [Annual Water Consumption(gallons per year)-1,752,000]/876,000 = Sewer Units
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The Board of Public Works will adjust the number of sewer units for commercial properties that were not fully occupied during the base year.
Other situations described below will be assessed as follows:
a. Multiple Structures on One Lot
The owner(s) of any property containing multiple structures that require internal plumbing under the Massachusetts Uniform Plumbing Code (248 CMR 2.00) shall be assessed a separate sewer betterment for each such structure. Multiple commercial structures on a single lot under common ownership (including apartment complexes with more than three units) shall be assessed one betterment based on the aggregate of water use for the lot.
b. Home Occupations
The owner(s) of any property containing a dwelling that accommodates a home occupation (as defined in Town By-law Sections 6-6.2(d) and/or 6-6.3(d)) shall not be assessed a betterment for the home occupation activity so long as the activity does not contribute more than 25% of the total, theoretical wastewater flow from the structure as defined in the “gallons per day” column of 310 CMR 15.203(3-5) or, if applicable, in 15.203(6). Any property containing a dwelling that accommodates a home occupation that contributes more than 25% of the total theoretical wastewater flow shall be treated as a commercial structure for the purposes of establishing a sewer betterment.
The following are provided by way of example only:
Example 1. single-family, three-bedroom home with 500 square feet of office space
Total theoretical wastewater flow equals 330 gallons per day for three bedrooms and 37.5 gallons per day for office space or 367.5 gallons per day. 37.5 gallons per day (flow from office use) divided by 367.5 gallons per day (total theoretical wastewater flow) equals approximately 10.2%. Therefore, the home occupation contributes less than 25% of the total theoretical wastewater flow and the betterment would be set strictly as a residential property.
Example 2. single-family, three-bedroom home with a one-doctor medical office
Total theoretical wastewater flow equals 330 gallons per day for three bedrooms and 250 gallons per day for medical office or 580 gallons per day. 250 gallons per day (flow from medical office use) divided by 580 gallons per day (total theoretical wastewater flow) equals approximately 43%. Therefore, the home occupation contributes more than 25% of the total theoretical wastewater flow and the betterment would be set strictly as a commercial property based on actual flow.
c. Mixed Use
The owner of any property containing a structure that accommodates both a dwelling unit or units and a non-residential use or uses that is not deemed to be a home occupation(s) shall be assessed a sewer betterment as if the entire structure is commercial.
2. Each developable vacant residential lot within the sewer service area shall be assessed at 40 (forty) percent of the single-family rate. If desired, owners of vacant lots may place permanent deed restrictions prohibiting development on said lots to avoid paying a sewer betterment. Such restrictions shall be in a form approved by the Board and by Essex Town Counsel and costs for developing and filing such restrictions shall be borne by the property owner.
3. Sewer or sewer treatment capacity equivalent to the average residential unit flow shall be reserved for vacant lots using this assessment method.
4. No building permit shall be issued for the expansion of any property unless the Board of Public Works certifies the availability of sewer units and sewage capacity. No building permit shall be issued for the change of use of any property unless the Board of Public Works certifies the availability of sewer capacity and that sufficient sewage capacity and sewer units are allocated to the property. The required sewer units shall be determined by the following formula:
Number of Sewer Units = Title 5 Design Flow / 330 gallons per day
In which the Title 5 Design Flow is equal to the sewage volume calculated per 310 CMR 15.000, Title 5. The sewage capacity that must be reserved for the connection shall be determined by the following formula:
Sewage Flow = Number of Sewer Units * 141 gpd
Should the design sewage flow be increased due to developing or expanding facilities on a property, the property owner shall pay a capacity allocation fee. The capacity allocation fee shall be paid to the Town with the building permit fee in accordance with the Schedule of Betterment Units in Item 1 above. The capacity allocation fee shall be calculated as follows:
Capacity Allocation Fee = (NSU) x (ASFBC) x (Years)
Where NSU is the Number of Sewer Units, ASFBC is the Annual Single Family Betterment Charge and Years if the number of years since the first betterment charges were billed to sewer customers. The annual betterment charge shall be paid thereafter until the project debt is retired.
b. Setting Sewer Unit Betterment Charge
The Board of Public Works shall set the sewer unit betterment charge. After the sewer project construction has begun and prior to completion of the project, the Board of Public Works shall set the sewer unit betterment charge based on the total projected project costs. After the construction is completed and all construction, engineering, consulting, or other capital contracts are closed, the Board of Public Works shall adjust the sewer unit betterment charge to accurately reflect actual costs.
The Board of Public Works shall sum up the total number of sewer units in Essex connected to the system. The sewer unit cost shall in accordance with the following formula:
Sewer Unit Cost = (72% of Total Project Capital Costs)/ (Total Number of Sewer Units)
c. Betterment Interest Rate
The Board of Public Works shall set the interest rate charged for the betterment in accordance with General Laws Chapters 80 and 83 at a rate equal to 2 percent above the rate of interest chargeable to the Town for the sewer project. Revenue collected by such charges shall be used to offset betterment deferrals and other expenses associated to the operation of the sewer system.
d. Deferred Betterment Payments
The Board of Public Works may enter into deferral and recovery agreements for sewer betterment charges with property owners meeting the requirements of set forth in Chapter 59, Section 5, Clause 41A (65 years old or older, occupying the property and meeting certain other residential and financial requirements). Town Meeting accepted by vote Section 13B of Chapter 80 of the General Laws on 5/6/96, which allows the Town to enter into such agreements.
The Board of Public Works shall draft a standard application and agreement form for the betterment deferral. Property owners must apply for a betterment deferral within six months after notice of assessment has been sent out by the tax collector. The agreement form shall
Include the following restrictions:
No sale or transfer of the property may be consummated unless the betterment assessment has been paid with interest;
Upon the death of the owner of the property, the heirs-at-law, assignees, or devisees shall have first priority to the property by paying the full betterment assessment plus interest; provided, however, if such heirs-at-law, assignee, or devisee is a surviving spouse who enters into a similar deferral and recovery agreement, payment with interest shall not be required during the life of the surviving spouse;
If betterment assessments are not paid by the heir-at-law, assignee, or devisee or if payment is not postponed, the betterment assessment with interest shall be recovered from the estate of the owner, and
A joint owner or mortgagee has given prior written approval for such agreement or such approval is made part of the agreement.
Section 3. Operational & Maintenance Charges:
The Board of Public Works shall set the charge for sewer service based on water consumption on an annual basis. The sewer service charge shall be set at a rate sufficient for the costs incurred including sewer fees from the City of Gloucester, labor costs, materials, fuels, contract maintenance, and all other costs directly attributable to the operation and maintenance of the sewer.
Every person who enters his particular sewer, directly or indirectly, into a common sewer laid out by the Board of public works shall pay an annual charge for the use of the common sewers, under provisions of M.G.L. c.83, 16. Such charges shall be based on rates established by the Board, and the charges on each person in accordance with the rate so established shall be ascertained, assessed, certified and committed to the Town treasurer by the Board.
Non-residential users of the Town’s sewer system using 25% (in gallons) of water above their 1998 total water consumption and paying over 1.5 sewer betterments shall be assessed a surcharge in the amount of 125% of the then current sewer rate for each 1000 gallons of water, or part thereof, used above the 1998 total water consumption. In the event of change of ownership, the usage will be prorated on a daily basis. The formula for determining the surcharge is as follows:
1998 Total Water Consumption x 1.25 = Maximum Allowable Non-residential Water Use (MANRWU)
Each 1000 gallons, or part thereof, over the MANRWU will be billed as follows:
(Each 1000 gallons over the MANRWU) x (the current sewer rate) x 1.25
Non-residential users paying 1.5 sewer betterments shall be entitled to discharge up to 330 gallons of wastewater per day to the sewer system regardless of property use without penalty. Each 1,000 gallons, or part thereof, above the 330 gallon per day threshold shall be billed as per the formula above with a value of 120,450 (annual flow based on 330 gallons per day) as the MANRWU.
Residential users of the Town’s sewer system exceeding the annual Title 5 (310 CMR 15.000) design flow of water for the number of bedrooms in the residential building(s), in addition to the base charge set by the Board, shall be assessed a surcharge in the amount of 125% of that rate for each 1000 gallons, or part thereof, of water used above the annual Title 5 design flow. In the event of change of ownership, the usage will be prorated on a daily basis. The formula for determining the surcharge is as follows:
# of Bedrooms in Residence x 110 gals. per day x 365 days per yr. = Maximum Allowable Residential Water Use (MARWU)
(Each 1000 gallons, or part thereof, over the MARWU) x (the current sewer rate) x 1.25
Any residential user is entitled to a minimum design flow of 330 gallons per day (three bedrooms) and existing one and two-bedroom dwellings shall not be prohibited from expanding to a total of up to three bedrooms on the basis of wastewater capacity.
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