THE CITY OF FREDERICK

WATER AND SEWER ALLOCATION REGULATIONS

.01 GENERAL

A. Authority. The Water and Sewer Service Committee (hereinafter "the Committee") of The City of Frederick (hereinafter "the City") adopts these regulations pursuant to the authority of §742(b) of the Land Management Code (hereinafter "LMC"), Appendix A of the Frederick City Code, 1966, as amended.

B. Purpose. The purpose of these regulations is to provide for the effective implementation and administration of LMC §742.

C. Committee Meetings. The Committee is composed of the Director of Planning and Community Development, the Director of Engineering, and the Building Department Manager. All decisions of the Committee shall be made in open session andshall comply with the provisions of the Maryland Open Meetings Act to the extent required by said Act.. Each Committee member may designate a representative to attend a Committee meeting in the absence of the member. The Committee may adopt rules of procedure to govern the transaction of its business.

D. Time. In computing any period of time prescribed by the LMC or these Regulations, the day of the act, event, or default after which the designated period of time begins to run is not included but intermediate Saturdays, Sundays, and holidays are counted. The last day of the period so computed is included unless it is a Saturday, Sunday, or holiday, in which event the period runs until the end of the next day that is not a Saturday, Sunday, or City holiday.

.02 DEFINITIONS

"Claim of entitlement" means a claim to water service based on a written agreement into which the City entered with the specific intent to provide water to a particular site, location or property. A claim of entitlement may not be based on a written agreement solely containing a general reference to water availability or the City's obligation to supply water to lots, structures, subdivisions or areas annexed into the City.

“Contract” means a Water and Sewer Allocation Contract between the City and a property owner as required by LMC § 742. The contract will be a standard form drafted by the City and available with the Planning Department and on the web at www.cityoffrederick.com.

"Equivalent Dwelling Unit" ("EDU") is a measure where one unit is equivalent to water supply and wastewater effluent from one home, which is 250 gallons per day per home (1 EDU = 250 gallons per day).

“Government project” means a development project, to be undertaken by any public or private individual or entity, that furthers the public health, safety and/or welfare.

“Master List” means the database of residential and nonresidential proposed development projects compiled by the Planning Department every year based upon applications by property owners . The Master List indicates eligibility and priority of development projects for allocation as determined by the LMC and these Regulations.

“Small volume user” means a project eligible to receive water pursuant to LMC § 742(g)(12).

“Water conservation plan” means

.03 ISSUANCE OF BUILDING PERMITS

A. Pre-Application Form. No building permit application will be accepted by the Building Department unless a "Water and Sewer Pre-Application Form" (Appendix B hereto) is submitted before or with such permit application, unless otherwise indicated in these Regulations.

B. Prerequisite to Building Permit Processing. No building permit application will be processed by the Building Department unless:

(1) The proposed project has been deemed exempt pursuant to LMC § 742(c)(1)(A), LMC § 742(c)(1)(B), § 742(c)(1)(C), or § 742(c)(1)(D) based on a finding by the Building Department Manager that no additional water or sewer is required; or

(2) The proposed project has been deemed exempt pursuant to § 742(c)(1)(E) based on a finding by the Committee that no additional water or sewer is required. The building permit application for such a project must be accompanied by a letter from the Committee confirming that it has found that no additional water or sewer is required; or

(3) It is accompanied by a Contract signed by all parties

C. Documentation Required for Claims of Exemption. In reviewing claims of exemption based on no additional water or sewer use, the Building Department Manager may consult with other members of the Committee and any other City staff. In addition to the information expressly required under these Regulations, the Building Department Manager may request from the applicant any information reasonably required to make his determination. Final decisions of the Building Department Manager may be appealed to the Committee.

.04 EXEMPTIONS AND SPECIAL ALLOCATIONS.

A. City Projects -- Exemption or Special Allocation. Projects to be undertaken by the City may be exempt from the provisions of LMC §742 pursuant to §742(c)(1)(A).

(1) Applicants for this exemption shall submit documentation to the Building Department, attached to the Pre-Application Form, showing:

(a) That the Mayor and Board of Aldermen have, by resolution, confirmed that the project is required for the health, safety and welfare of the residents of the City; and

(b) The amount of additional water and/or sewer, if any, expected as a result of the proposed project.

(2) If the City indicates that no additional water or sewer is required and the Building Department Manager concurs, the proposed project will be deemed exempt from the provisions of LMC § 742 and no Contract will be required.

(3) If the Building Department Manager determines that additional water and/or sewer is required, the appropriate amount will be allocated in accordance with Section .09_of these Regulations.

B. Decks, Sheds, Etc. -- Exemption. Decks, sheds, fences, porches, patios, and similar projects may be exempt from the provisions of LMC § 742 pursuant to § 742(c)(1)(B).

(1) Applicants for this exemption shall submit documentation to the Building Department, attached to the Pre-Application Form, showing the amount of additional water or sewer, if any, expected as a result of the proposed project.

(2) If the applicant indicates that no additional water or sewer is required and the Building Department Manager concurs, the proposed project will be deemed exempt from the provisions of LMC § 742 and no Contract will be required.

(3) If the Building Department Manager determines that additional water and/or sewer is required, the applicant will need to apply for placement on the Master List in accordance with (cite) of the LMC.

C. Replacement and Repairs -- Exemption. Replacement-in-kind projects and repairs may be exempt from the provisions of LMC § 742 pursuant to § 742 (c)(1)(C).

D. Improvements to Existing Sites or Structures -- Exemption. Improvements to existing sites or structures may be exempt from the provisions of LMC § 742 LMC pursuant to § 742 (c)(1)(D).

(a) There is a rebuttable presumption that the installation of additional bathrooms, spas, hot tubs or pools will not create the need for any additional water or sewer in an existing residential unit.

(b) Projects to convert one non-residential use to another non-residential use will be deemed exempt if they will use no more water and sewer than was consumed by the previous or existing use, as calculated in accordance with Section .12 of these Regulations.

(2) If the proposed use will consume more water and/or sewer than the previous or existing use, no exemption will be granted and the applicant must seek allocation under the appropriate category.

(3) If the applicant indicates that no additional water or sewer is required and the Building Department Manager concurs, the proposed project will be deemed exempt from the provisions of § 742 of the LMC and no Contract will be required.

E. Other Projects Not Requiring Water/Sewer -- Exemption. Projects other than those included in subsections (A) through (D) of this section may be exempt from the provisions of § 742 pursuant to § 742(c)(1)(E).

(1) Applicants for this exemption shall submit documentation to the Planning Department showing the amount of additional water or sewer, if any, expected as a result of the proposed project.

(2) If the Committee determines that no additional water or sewer will be required, the proposed project will be deemed exempt from the provisions of § 742 of the LMC and no Contract will be required.

(3) If the Committee determines that additional water and/or sewer is required, the applicant will need to apply for placement on the Master List in accordance with LMC § 742(f) or § 742 (g), whichever is applicable.

F. Ten Percent Increase – Special Allocation. Projects that will expand or change the use of existing, occupied commercial or industrial buildings may be exempt from the provisions of LMC § 742 pursuant to § 742(c)(1)(F).

(1) Applicants for this special allocation shall submit documentation to the Planning Department showing the amount of additional water or sewer, if any, expected as a result of the proposed project.

(2) If the Committee determines that the proposed project will create an increase in water and sewer use of less than ten percent (10%) over the established current use, as calculated pursuant to Section .12 of these Regulations, the Committee may allocate water and sewer as set forth in paragraph (3) of this Section

(3) The Committee will allocate the required amount of water and sewer from the exemptions category of the discretionary allocation if sufficient water and sewer is available thereunder. If insufficient water is available in the exemptions category, the exemption request will be deferred until such time as the allocation may be made.

(a) The Committee shall allocate to the proposed project the minimum amount needed to provide adequate water and sewer for the proposed activity, not to exceed an increase of 10% over the established current water consumption.

(4) If the established current water consumption exceeds the maximum potential allocation for the property as set forth in LMC § 742(g)(2). no allocation may be made pursuant to this section; rather, the applicant may apply for allocation from the business retention and development category of the discretionary allocation, pursuant to Section .09 of these Regulations.

G. Emergencies – Special Allocation. Projects of an emergency nature, required by exigent circumstances or gross hardship, may be exempt from the provisions of LMC § 742 pursuant to § 742(c)(1)(G).

(1) Applicants for this special allocation shall submit documentation to the Planning Department showing the following:

(a) that the emergency was not created by the applicant; and

(b) that there are exigent circumstances and/or gross hardship.

(2) If the Committee makes the following findings, it may allocate water as set forth in paragraph (3) below.

(a) that the emergency was not created by the applicant; and

(b) that exigent circumstances and/or gross hardship justify granting the exemption; and

(d) that granting the exemption would not be contrary to any federal, state or local laws or regulations.

.05 RESIDENTIAL ALLOCATION

A. Eligibility. Water and sewer will be allocated to those residential projects deemed eligible pursuant to § 742(f)(1) in accordance with the procedure set forth in this Section. Reassessment of placement on the Master List shall take place on December 1 of each year for any allocation during the following calendar year. All owners of residential property seeking allocations during the next calendar year must submit an application to the Planning Department, on a form provided by the Department, placement on the Master List. Applications should be submitted by December 1. While later applications will be accepted, in any event a project’s eligibility shall be determined based on the status of the project as of that date. In order for a required development approval to be deemed received, the project must have received written notice from the City that all conditions for such approval have been met.

B. Calculation of Allocation. Water and sewer allocations will be made in gpd. The number of gpd allocated will be based on the number of equivalent dwelling units comprising the project. Provided that the gpd allocated are not exceeded, a developer may build any combination of unit types. The number and types of units will be specified either in the original Contract or in an amendment thereto prior to the issuance of a building permit. The types of units and corresponding EDUs and gpd are as follows:

(1) Single-Family Detached Unit (SFD) = 1 EDU = 250 gpd

(2) Townhouse Unit (TH) = 225 gpd

(3) Multi-family/Condo Unit (MF) = 180 gpd

C. Affordable Housing. Water and sewer will be allocated to those affordable housing projects deemed eligible pursuant to LMC § 742(f)(2), in accordance with the procedure outlined in this subsection.

(1) The applicant must provide the Committee with sufficient documentation to show that the proposed project is an affordable housing project as defined in LMC Article 10.

(2) Each eligible affordable housing project shall receive an equal allocation each year. For a project to be eligible, it must have an approved preliminary Subdivision plan or final site plan, with all conditions met, and have demonstrated that funding has been obtained prior to allocation. [rsd1]

D. Allocation Process – Equal Distribution Suballocation.

(1) In determining the gpd to be allocated equally pursuant to LMC § 742(f)(3), the total amount of suballocation available will first be converted to EDUs. The number of EDUs will then be divided by the number of eligible projects. The quotient will be rounded down to the nearest whole number to eliminate any fractions, resulting in a preliminary allocation per project (the Equal Distribution Suballocation, or “EDS”). The preliminary EDS will be compared to the allocation requested for each project. If the amount of the EDA exceeds the amount requested, only the amount requested will be allocated and the remainder will be distributed equally among the other projects still needing an allocation. This process will continue until no further EDAs may be distributed equally, given that fractions of EDUs will not be distributed. Any remaining EDUs will be added back to the residential category for pro-rata allocation pursuant to subsection (D) below.

(2) The Committee will allocate the water and sewer to each project in an open meeting.

(3) The Planning Department will mail a written notice to each such property owner within ten days after the allocation has been made confirming the amount of allocation.

(E) Allocation Process – Pro Rata Suballocation. Once the Equal Distribution Suballocation has been made pursuant to subsection (C) of this Section, the Pro Rata Suballocation (or “PRS”) will be distributed pursuant to § 742(f)(4) to all eligible projects requiring further allocation.

(1) The PRS will be calculated by first dividing the number of dwelling units per project (as depicted in the Preliminary Subdivision Plat or Final Site Plan) by the total of all units from all remaining qualified projects. The total EDUs available for allocation will then be multiplied by that percentage to determine the number of EDU’s each project shall receive.

(2) If the PRA exceeds the remaining number of units in the project, the excess PRS will be proportionally distributed to those projects needing further allocations.

(3) The EDUs calculated per subsection (2) of subsection (D) of this Section shall be reduced with regard to those projects consisting entirely of townhouse and/or multifamily units which… The number of gpd represented by this reduction will be converted to EDUs and distributed in accordance with subsection (C) of this Section.

(4) The Committee will allocate the water and sewer to each project in an open meeting, following written notice to each property owner scheduled to receive an allocation. Such allocation will be contingent upon the timely submission of a Contract in accordance with Section .13 of these regulations. The Planning Department will mail another written notice to each such property owner within ten days after the allocation has been made confirming the amount of allocation and notifying the property owner of the Contract application requirements of Section .13 of these regulations.

.06 COMMERCIAL/INDUSTRIAL ALLOCATION

A. Eligibility. Water and sewer will be allocated to those commercial and industrial projects deemed eligible pursuant to LMC § 742(g)(6) in accordance with the procedure set forth in LMC § 742(g) and this Section. Reassessment of placement on the Master List shall take place on December 1 of each year for any allocation the following year. All owners of residential property seeking allocations during the next calendar year must submit an application to the Planning Department, on a form provided by the Department, placement on the Master List. Applications should be submitted by December 1. While later applications will be accepted, in any event a project’s eligibility and its placement into a prioritization tier shall be determined based on the status of the project as of that date. In order for a required development approval to be deemed received, the project must have received written notice from the City that all conditions for such approval have been met.

B. Allocation Process

(1) Allocation to projects on sites larger than one acre will be based upon the “maximum potential allocation” calculated pursuant to LMC § 742(g)(2).

(2) Allocation to projects on one acre of land or less will be calculated pursuant to Section .12 of these Regulations.

(3) The property owner may request that the Committee calculate the allocation using a method other than that described in subsection (C)(1) or (C)(2) of this Section. The applicant has the burden of demonstrating why an alternative method should be used. In no instance shall the allocation made from the commercial/industrial category be greater than that determined by using the flow factors.

(4) Any development project requiring water and/or sewer in excess of the amounts allocated based on the maximum potential allocation may request additional allocation from the business retention & development category of the discretionary allocation.

(5) The Committee will allocate the water and sewer to each project in an open meeting, following written notice to each property owner scheduled to receive an allocation. Such allocation will be contingent upon the timely submission of a Contract in accordance with Section .13 of these regulations. Planning Department will mail another written notice to each such property owner within ten days after the allocation has been made confirming the amount of allocation and notifying the property owner of the Contract application requirements of Section .13 of these Regulations.

C. Integrated Projects

(1) Once the allocation has been made to an integrated development project, the property owner shall assign a minimum allocation to every lot within the development. Such minimum allocation shall be calculated in accordance with Section .12 of these Regulations.

D. Tier 1 Allocations.

(1) Tier 1 projects are defined as set forth in Table 742-1 of the LMC. Tier 1 projects include only existing structures, and do not include adjacent vacant land proposed for expansion or development.

(2) Notwitstanding the requirements of subsection A of this Section, the Committee may add new projects to the Tier 1 list on an ongoing basis. Immediately following the formal announcement by the Mayor that water is available to be allocated, no new projects will be added to the Tier 1 list until all such water has been allocated.

(3) An allocation made to a project eligible for allocation under Tier 1 may be transferred to another tenant space within the same building, but may not be transferred to any other part of an integrated development project that does not have Tier 1 status. If an allocation is transferred to another tenant space within the building, the Contract must be amended accordingly.

E. Small Volume Users.

(1) To be eligible to receive an allocation as a small volume user, the project must have a final site plan approved with all conditions met and must demonstrate that the proposed use can operate without exceeding the 1800 gpd limit.

(2) The Committee will calculate the allocation pursuant to Section .12 of these Regulations.

.07 DISCRETIONARY ALLOCATION -- CLAIMS OF ENTITLEMENT

A. Application. An applicant for a claim of entitlement pursuant to LMC § 742(d) shall, upon the grant of a waiver pursuant to LMC §742(d)(1), submit documentation including the following information to the Planning Department:

(1) A description of all portions of the property for which water is claimed, including its location, proposed use, current development approval status, description of development that has occurred to date, and amount of undeveloped portions of the property remaining; and

(2) A copy or description of the written agreement forming the basis for the claim of entitlement, with specific reference to any promise by the City to provide water to the applicant and the amount thereof; and

(3) The names and addresses of all persons having substantial property, financial or other significant interest in the proposed development project.

B. Hearing. Within ten (10) days of receipt of a complete application including the documentation required by subsection (A) of this Section, the Committee will schedule a public hearing to take place within thirty (30) days at which the applicant may be heard regarding his claim of entitlement.

C. Decision. The Committee will render a written decision on the claim of entitlement within thirty (30) days of the public hearing thereon. The Committee will include in its decision a calculation of the amount of water and sewer to which the applicant is entitled by virtue of its claim of entitlement. This amount shall reflect the promise made by the City in the relevant written agreement, and will not necessarily be the full amount required for the development project currently proposed.

D. Allocation. Upon finding that a valid claim of entitlement exists, the Committee will first seek to allocate water and sewer from the residential or commercial/industrial allocation, whichever is applicable. If insufficient allocation may be made from said category to allow the proposed development project to be constructed and operated, the Committee will allocate water and sewer from the claim of entitlement category of the discretionary allocation.

E. Satisfaction. Once a development project has received its entire allocation as determined by the Committee and included in its decision, the allocation to be made to the remaining projects with claims of entitlement shall be recalculated.

.08 DISCRETIONARY ALLOCATION -- BUSINESS RETENTION AND DEVELOPMENT

A. Eligibility. Water and sewer will be allocated to business retention and development projects from the discretionary category pursuant to LMC § 742(i) and in accordance with the procedures outlined in this Section.

B. Certification by DED. The City's Department of Economic Development (DED) shall certify that a project is eligible for water and sewer allocation as a business retention and development project if it receives a score of at least fifteen (15) points based on the following criteria scoring system:

Category	Points
Retention or Recruitment Status
Existing Frederick Business	5
New Business	3
Type of Business