Chapter 3.60
SERVICE CAPACITY ALLOCATION

Sections:

3.60.010    Capacity rights allocation – Issuance of certificate of capacity rights.

3.60.020    Vesting of certificate of capacity rights.

3.60.030    Limitations on vesting of certificate of capacity rights.

3.60.040    Nontransferability of certificate of capacity rights.

3.60.050    Additional capacity – Intensification or modification of use.

3.60.060    Adjustment to allocated capacity – Modification of certificate of capacity rights.

3.60.070    Minimum service capacity.

3.60.080    Common interest subdivision conversions – Special wastewater requirements.

3.60.090    Priority for certain governmental connections.

3.60.010 Capacity rights allocation – Issuance of certificate of capacity rights.

Prior to connection to District facilities, applicants shall obtain from the District sufficient water and/or wastewater capacity rights, as determined by the District Engineer, for the property upon which they have proposed a development. Capacity rights provide the property the conditional right to obtain service from and use of the District’s water and wastewater systems. Allocation of capacity for water and/or wastewater service to a property shall be issued through a certificate of capacity rights, which shall remain conditional until such time, if ever, it vests in accordance with DSRSDC 3.60.020, Vesting of certificate of capacity rights. No certificate of capacity rights shall be issued until the applicant has paid capacity reserve fees (formerly known as connection fees) and the District Engineer has approved the application therefor in accordance with Chapter 3.40 DSRSDC, Application for Services. Unless the Board has determined that sufficient capacity is not available to allow additional connections to its water system, its wastewater system, or both, a certificate of capacity rights shall issue as of the date of payment of the capacity reserve fees.

A certificate of capacity rights, if required for a development, shall be obtained by the applicant (A) within 30 calendar days prior to installation of a new or larger water meter; or, if installation of a new or larger water meter is not required, within 30 days prior to issuance of a building permit, if a building permit is required by the city or county having jurisdiction; (B) within 30 calendar days prior to installation of a water meter, if a building permit is not required by the city or county having jurisdiction; or (C) if neither a building permit nor a new or larger water meter is required, within 30 calendar days prior to an application for service submitted pursuant to DSRSDC 3.40.030. For an application for service submitted pursuant to DSRSDC 3.40.040, the certificate of capacity rights shall be obtained within 30 calendar days prior to the first use of the additional capacity required as a result of the expansion of any building or structure, or of the intensification of use, or of the initiating of service to a new building or structure not subject to the provisions of DSRSDC 3.40.030.

The quantity of capacity right allocation required for a development or property shall be determined by the District Engineer. If the Board has determined that sufficient capacity is not available to allow additional connections to its water system, its wastewater system or both, the District may deny such connections notwithstanding the issuance of certificates of capacity rights.

A sewer permit issued to an applicant prior to December 2, 2010, shall be deemed to be a certificate of capacity rights for sewer capacity, and shall be subject to all of the provisions of this chapter. However, issuance of a construction permit after December 2, 2010, shall not be deemed to be a certificate of capacity rights of any kind, nor shall it be deemed to imply or otherwise give rise to an entitlement of any kind to a capacity rights allocation, or any reasonable expectation thereof, for the recipient of such construction permit.

The District reserves the right to make additional changes to capacity rights allocation and charge associated fees for existing water and wastewater service connections to the District’s systems, for which certificates of capacity rights have been previously issued, if significant changes in service demands, within the area served by the District or within a specified portion thereof in which the connection is located, make the additional changes necessary.

A.    Water. Unless otherwise determined by the District Engineer, capacity rights to service from and use of the District’s potable water and recycled water distribution systems shall be a multiple representing the approximate ratio between the maximum rate of continuous flow through the water meter(s) required on a property and the maximum rate of continuous flow through a 5/8-inch water meter, which shall be the unit of measurement. For accessory dwelling units not contained within the existing space of a single-family residence or accessory structure and for accessory dwelling units contained within the existing space of a single-family residence or accessory structure for which the applicant requests installation of a separate water meter for the accessory dwelling unit, capacity rights to service from and use of the District’s potable water distribution system shall be a multiple representing the approximate ratio between the average daily demand of accessory dwelling units within the area served by the District or a specified portion thereof as estimated by the District Engineer, and the average daily demand of a single-family dwelling unit equivalent, based upon either the size of the accessory dwelling unit or the number of plumbing fixtures installed in the accessory dwelling unit.

B.    Wastewater. Capacity rights to service from and use of the District’s regional wastewater treatment plant shall be determined by the District Engineer based on the average daily flow, BOD, and SS of the proposed or actual discharge into the wastewater system within the area served by the District, or a specified portion thereof, as estimated by the District Engineer. Capacity rights to service from and use of the District’s local wastewater collection system shall be determined by the District Engineer based on the average daily flow of the property’s discharge into the wastewater system within the area served by the District, or a specified portion thereof, as estimated by the District Engineer.

1.    Nonresidential Users. For nonresidential users, if, in the discretion of the District Engineer, no wastewater flow information can be provided by the applicant, the initial determination of the capacity rights shall be based on the average daily flow, BOD, and SS discharged into the wastewater system by all uses of the same category or use classification as the proposed use, as estimated by the District Engineer in accordance with DSRSDC 3.30.010(C), Wastewater Capacity Demand Estimates. The appropriate category or use classification for this determination shall be selected by the District Engineer in his or her sole discretion.

The District Engineer may, using appropriate means within the sole and absolute discretion of the District, review capacity rights for nonresidential users upon request submitted either pursuant to DSRSDC 3.60.060, Adjustment to allocated capacity – Modification of certificate of capacity rights, or at any time after an appropriate period as determined by the District Engineer to represent normalized wastewater usage based upon any additional information that becomes available about average daily flow, BOD, and SS actually being discharged into the wastewater system.

2.    Residential Users. For residential users, a standard regional wastewater capacity allocation shall be used for each single-family dwelling unit equivalent based upon the average daily flow, BOD and SS discharged by all single-family dwelling units within the area served by the District or a specified portion thereof, as determined from time to time by the District Engineer. A standard local wastewater capacity allocation shall be used for each single-family dwelling unit based upon the average daily flow discharged by all single-family dwelling units within the area served by the District or a specified portion thereof, as determined from time to time by the District Engineer.

Unless otherwise determined by the District Engineer, capacity rights for accessory dwelling units not contained within the existing space of a single-family residence or accessory structure, and for accessory dwelling units contained within the existing space of a single-family residence or accessory structure for which the applicant requests installation of a separate sewer lateral for the accessory dwelling unit, and for each class of multiple-family dwelling units, to service from and use of the District’s regional wastewater treatment plant shall be a multiple representing the approximate ratio between the average daily flow, BOD and SS from said class of dwelling units within the area served by the District or a specified portion thereof, as estimated by the District Engineer, and a single-family dwelling unit equivalent. Unless otherwise determined by the District Engineer, capacity rights for accessory dwelling units not contained within the existing space of a single-family residence or accessory structure or accessory structure, and for accessory dwelling units contained within the existing space of a single-family residence or accessory structure for which the applicant requests installation of a separate sewer lateral for the accessory dwelling unit, and for each class of multiple-family dwelling units, to service from and use of the District’s local wastewater collection system shall be a multiple representing the approximate ratio between the average daily flow from said class of dwelling units within the area served by the District or a specified portion thereof as estimated by the District Engineer, and a single-family dwelling unit equivalent. For accessory dwelling units not contained within the existing space of a single-family residence or accessory structure, and for accessory dwelling units contained within the existing space of a single-family residence or accessory structure for which the applicant requests installation of a separate sewer lateral, the respective determinations described in the two preceding sentences shall be based upon either the size of the accessory dwelling unit or the number of plumbing fixtures installed in the accessory dwelling unit. [Ord. 342, 2017. Prior legislation: Ord. 69, 1969; Ord. 90, 1971; Ord. 118, 1975; Ord. 147, 1979; Ord. 157, 1980; Ord. 159, 1980; Ord. 190, 1984; Ord. 216, 1988; Ord. 273, 1997; Ord. 327, 2010; Ord. 331, 2013; Ord. 339, 2016; Ord. 340, 2016.]

3.60.020 Vesting of certificate of capacity rights.

A.    The certificate of capacity rights and rights associated therewith are conditional and shall vest only after the applicant has paid all capacity reserve fees (formerly known as connection fees) in effect at the date of vesting and either (1) a new or larger meter water meter has been set; or (2) building structures, for which all or a substantial portion (as determined by the District Engineer) of the certificate of capacity rights is issued, are constructed and connected to District facilities.

The certificate of capacity rights and rights associated therewith shall lapse and not be vested, if (1) a new or larger water meter has not been set; or (2) the building structures for which all or a substantial portion (as determined by the District Engineer) of the certificate of capacity rights is issued are not constructed and connected to District facilities within 30 days after payment of the capacity reserve fees pursuant to DSRSDC 3.70.080. However, after a new or larger water meter has been set, or the building structures for which all or a substantial portion (as determined by the District Engineer) of the certificate of capacity rights is issued are constructed and connected to District facilities, and additional capacity reserve fees are paid in accordance with DSRSDC 3.70.010(D), the certificate of capacity rights and rights associated therewith shall vest.

Notwithstanding the preceding two paragraphs, if changes have been made to the development upon which the District based its determination of capacity rights under DSRSDC 3.60.010, Capacity rights allocation – Issuance of certificate of capacity rights, or if changes have been made to affect the amount of capacity needed for the property upon which the development was proposed, as determined by the District Engineer, certificate of capacity rights shall be modified in accordance with DSRSDC 3.60.050, Additional capacity – Intensification or modification of use, or DSRSDC 3.60.060, Adjustment to allocated capacity – Modification of certificate of capacity rights, and appropriate fees shall be paid (or refunded, but only to the extent a refund is required under DSRSDC 3.70.050, Partial refund of capacity reserve fees).

Notwithstanding the foregoing, the District may, from time to time, adopt a policy by resolution establishing criteria for expiration of capacity rights based on its determination that sufficient capacity is not available in its water system, its wastewater system, or both, to meet anticipated demands, or that such capacity will not be available at the time of vesting of capacity rights in accordance with this section, and/or an unprecedented severe reduction in economic development.

B.    Nothing in the provisions of subsection (A) of this section shall be deemed to prevent the District from exercising its discretion, or to permit the vesting of any certificate of capacity rights in a manner contrary to, or in a manner that would in any way constrain the District’s discretion under, DSRSDC 3.20.030,

Requirement of capacity – Priorities for capacity allocation, DSRSDC 3.20.120, Priority for affordable or low income housing developments, or DSRSDC 3.60.090, Priority for certain governmental connections. [Ord. 339, 2016. Prior legislation: Ord. 69, 1969; Ord. 118, 1975; Ord. 157, 1980; Ord. 159, 1980; Ord. 190, 1984; Ord. 216, 1988; Ord. 273, 1997; Ord. 327, 2010; Ord. 331, 2013.]

3.60.030 Limitations on vesting of certificate of capacity rights.

If the Board has determined, consistent with DSRSDC 3.20.030, Requirement of capacity – Priorities for capacity allocation, 3.20.120, Priority for affordable or low income housing developments, or 3.60.090, Priority for certain governmental connections, that capacity is not available for the use sought by a holder of a certificate of capacity right, the certificate of capacity rights and rights associated therewith will vest, if at all, only in accordance with subsections (A) and (B) of this section.

A.    If the Board has determined that sufficient capacity is not available in its water system, its wastewater system, or both, to meet anticipated demands, or that such capacity will not be available at the time of vesting of capacity rights in accordance with DSRSDC 3.60.020, it may specify such criteria that, in its discretion, best serve the public health, welfare, safety, necessity and convenience, for determining the sequence in which connections will be allowed. If no criteria are specified, the certificates shall vest, if at all, only upon connection to District facilities as specified in DSRSDC 3.60.020, Vesting of certificate of capacity rights.

B.    Notwithstanding the foregoing, the District may decline to issue a certificate of water capacity rights and may deny a connection to its water system based on its determination that it lacks available capacity in its wastewater system. [Ord. 331, 2013. Prior legislation: Ord. 327, 2010.]

3.60.040 Nontransferability of certificate of capacity rights.

Capacity rights, when a certificate therefor is issued, shall attach to and run with the lot or parcel of land for which the certificate was issued; capacity rights for multiple parcels, including landscaped parcels along roadways, under common ownership and served by a single irrigation water meter shall attach to and run with the parcels of land for which the certificate was issued. The certificate of capacity rights is not transferable except with the land to which it is attached. Capacity rights may be reallocated within the lot or parcel after the filing for subdivision of that lot or parcel, but such reallocation shall take effect only in accordance with the following two sentences. The property owner may, prior to the recordation of the final parcel map or subdivision map, submit a letter of reallocation of capacity rights to the District which identifies the new lot(s) or parcel(s) formed and indicates the capacity being allocated to each newly created lot or parcel, and such other information which may be required by the District Engineer. If the property owner does not timely submit such a letter, the District Engineer may determine and effectuate such reallocation of capacity rights as is appropriate in the exercise of his or her discretion. [Ord. 157, 1980; Ord. 216, 1988; Ord. 273, 1997; Ord. 327, 2010.]

3.60.050 Additional capacity – Intensification or modification of use.

An applicant proposing intensification or modification of use on a property to which the District provides services, other than an accessory dwelling unit that is contained within the existing space of a single-family residence or accessory structure unless the applicant requests installation of a separate water meter and/or sewer lateral for the accessory dwelling unit, shall obtain additional service capacity rights allocation and pay all associated fees in effect at the time of payment, including without limitation meter assembly fees and capacity reserve fees. Additional service capacity rights required for the intensification or modification of use shall be determined by the District Engineer. For accessory dwelling units not contained within the existing space of a single-family residence or accessory structure, unless the applicant requests installation of a separate water meter and/or sewer lateral for the accessory dwelling unit, the determination described in the preceding sentence shall be based upon either the size of the accessory dwelling unit or the number of plumbing fixtures installed in the accessory dwelling unit. Additional service capacity rights shall be allocated in accordance with DSRSDC 3.60.010, Capacity rights allocation – Issuance of certificate of capacity rights. [Ord. 340, 2016. Prior legislation: Ord. 327, 2010.]

3.60.060 Adjustment to allocated capacity – Modification of certificate of capacity rights.

A.    Applicability. This section is applicable only to commercial, institutional, industrial and any other nonresidential properties.

B.    Reduction in Capacity – Request by Owner. The property owner may submit to the District a written request for a reduction of capacity rights. Such a request will not be considered any sooner than one year after occupancy of substantially all units on the lot or parcel and thereafter will be considered only after an appropriate period, as determined by the District Engineer in his or her sole discretion, of normalized water or wastewater usage by a property, whichever is applicable. Such a request shall be deemed rejected if the request has not been approved within three years after the date of issuance of the last certificate of occupancy. The District shall monitor the capacity utilized within the entire lot or parcel subject to the certificate of capacity rights using appropriate means within the sole and absolute discretion of the District.

1.    If it is determined by the District Engineer that the capacity used, after normalized water or wastewater usage has been achieved, is greater than five percent less than the capacity granted in the certificate of capacity rights, the District will, after a smaller diameter water meter has been installed in place of the original water meter or, with respect to wastewater service, some other verifiable criteria has been developed that, in the sole discretion of the District Engineer, demonstrates that the reduced wastewater usage is permanent, refund the difference between the capacity reserve fees actually paid and the capacity reserve fees that would have been charged for the reduced capacity rights to be allocated to the property, in the respective amounts in effect at the time of the initial issuance of the certificate of capacity rights; the District shall modify the certificate of capacity rights to reflect the capacity rights as thus reduced. A customer may have a larger water meter exchanged for and replaced by a smaller water meter without payment of an additional meter assembly fee to the District.

2.    If it is determined by the District Engineer that the capacity being used is greater than five percent more than the capacity granted in the certificate of capacity rights, the property owner shall pay the difference between the capacity reserve fees for the capacity actually purchased and the capacity reserve fees that would be charged for the increased capacity rights to be allocated to the property, based on the fees in effect at the time of payment for the additional capacity rights. Upon payment of the additional fees, the District shall issue a new certificate of capacity rights which shall include the additional capacity purchased, and which shall supersede the previously issued certificate of capacity rights.

C.    Capacity Adjustment – District Monitoring. The District has the right, at any time and from time to time, to monitor the usage of any property that has been allocated capacity rights or any customer operating under a certificate of capacity rights. The method of monitoring shall be in the sole and absolute discretion of the District. The District shall notify the property owner in writing of the results of the District’s monitoring.

1.    If it is determined by the District Engineer that the capacity being used exceeds the capacity granted in the certificate of capacity rights by greater than five percent, the holder of the certificate of capacity rights may either:

a.    Pay the difference between the capacity reserve fees for the capacity actually purchased and the capacity reserve fees that would be charged for the increased capacity rights to be allocated to the property, based on the fees in effect at the time of payment for the additional capacity rights being used and obtain a replacement certificate of capacity rights; or

b.    Within one year of the notification, decrease the capacity being used to that granted in the certificate of capacity rights.

2.    A property owner who fails to reduce the capacity to that granted in the certificate of capacity rights within one year of the notification shall pay the difference between the capacity reserve fees for the capacity actually purchased and the capacity reserve fees that would be charged for the increased capacity rights to be allocated to the property, based on the fees in effect at the time of payment for the additional capacity rights being used and obtain a replacement certificate of capacity rights to conform to the capacity measured by the District under this subsection (C), Capacity Adjustment – District Monitoring. The certificate of capacity rights shall be retroactive to the date of monitoring.

3.    If a smaller water meter is required, no additional meter assembly fee shall be required and the District shall, after the smaller diameter water meter has been installed in place of the larger water meter, refund the difference between the capacity reserve fees actually paid and the capacity reserve fees that would have been charged for the reduced capacity rights to be allocated to the property, in the respective amounts in effect at the time of the initial issuance of the certificate of capacity rights. If a larger water meter is required, the holder shall pay for a meter assembly fee for the new water meter and pay the difference between the capacity reserve fees for the capacity actually purchased and the capacity reserve fees that would be charged for the increased capacity rights to be allocated to the property, based on the fees in effect at the time of payment for the additional capacity rights. The District shall issue a new certificate of capacity rights reflecting the change in capacity allocation, which shall supersede the previously issued certificate of capacity rights. [Ord. 142, 1978; Ord. 146, 1979; Ord. 157, 1980; Ord. 172, 1982; Ord. 200, 1985; Ord. 216, 1988; Ord. 273, 1997; Ord. 274, 1997; Ord. 327, 2010.]

3.60.070 Minimum service capacity.

The minimum unit of service capacity that may be allocated to any connection or property of separate ownership shall be equal to that for 5/8-inch water meter for water service and a single-family dwelling unit equivalent for wastewater service, except as the District Engineer may, in his or her sole discretion, determine based on actual or estimated discharges of wastewater flow, BOD, and SS, as generally described in DSRSDC 3.70.010(C)(1)(a), Residential Users, and (C)(2)(a), Residential. [Ord. 142, 1978; Ord. 146, 1979; Ord. 273, 1997; Ord. 327, 2010.]

3.60.080 Common interest subdivision conversions – Special wastewater requirements.

The certificate of capacity right or construction permit issued for any hotel, motel, apartment, office building, industrial building or other building which is converted to a common interest development pursuant to Civil Code Sections 1350 et seq. (commonly known as the Davis Sterling Common Interest Development Act) shall remain in full force and effect, provided (A) that the declaration of restrictions for the project shall irrevocably require that the governing body of the common interest development shall maintain the customer facilities connecting the building with the District facilities, and (B) the water and wastewater capacity, as projected by the District Engineer to be required by the new use, is equal to or less than the capacity granted prior to said conversion.

In the event the District Engineer determines that the water or wastewater capacity exceeds the capacity granted prior to the conversion, the owner or owners shall pay to the District all associated fees in effect at time of payment in the manner described in DSRSDC 3.60.060, Adjustment to allocated capacity – Modification of certificate of capacity rights. Upon owner’s failure to, within 30 days after such a determination, file with the District a copy of the declaration of restrictions irrevocably requiring that the governing body of the common interest development maintain the customer facilities, or to pay such associated fees, or both, the District may terminate all service to the building under DSRSDC 1.50.030, Discontinuance of services. Modifications of capacity rights shall be completed in conformance with DSRSDC 3.60.050, Additional capacity – Intensification or modification of use, and additional service capacity shall be allocated in accordance with DSRSDC 3.60.010, Capacity rights allocation – Issuance of certificate of capacity rights. [Ord. 157, 1980; Ord. 273, 1997; Ord. 327, 2010.]

3.60.090 Priority for certain governmental connections.

Upon finding that: (A) the public health, welfare, safety, necessity and convenience require the allocation of water or wastewater connections and the related capacity rights to a governmental or quasi-governmental agency or other public institution in order to perform necessary governmental functions or services under its jurisdiction; (B) the functions or services do not include the granting of entitlements for the development or use of privately or publicly owned property for private use; (C) the agency or institution requires not less than 0.025 MGD flow capacity rights; and (D) sufficient treatment capacity exists in the District’s treatment works for allocation to the agency or institution in the amount specified by the Board without impairing the rights of others under certificate of capacity rights or agreements previously issued or entered; the Board may enter into an agreement with the governing body of the agency or institution allocating certificate of capacity rights and the related capacity rights, having priority over all other pending applications and future demand in the amount as the Board, in its discretion, determines. Such an agreement shall be the exclusive method by which certificate of capacity rights and corresponding capacity rights may be allocated under this section. It shall include, but not be limited to: provisions for payment of all applicable fees and charges specified in this chapter for connection to and use of the District’s wastewater facilities; that the certificates shall vest as specified in DSRSDC 3.60.020, Vesting of certificate of capacity rights, and, if DSRSDC 3.60.030, Limitations on vesting of certificate of capacity rights, is applicable, the certificates shall vest as specified therein unless otherwise specified in the agreement; the governmental use to be served by the connection(s) to the District’s water and/or wastewater facilities permitted thereunder; and other terms and conditions as the District deems necessary or appropriate. Except as provided to the contrary in the agreement, all provisions of this code governing connection to and use of the District’s water and wastewater facilities shall govern permits and certificates issued under the agreement. [Ord. 331, 2013. Prior legislation: Ord. 201, 1985; Ord. 273, 1997; Ord. 327, 2010.]