Title of Regulation: 12VAC5-600. Waterworks Operation Fee (amending 12VAC5-600-10, 12VAC5-600-20, 12VAC5-600-30, 12VAC5-600-50, 12VAC5-600-60, 12VAC5-600-70, 12VAC5-600-100, 12VAC5-600-110).

Statutory Authority: §§ 32.1-12 and 32.1-170 of the Code of Virginia.

Effective Date: November 22, 2012.

Agency Contact: Joe Hilbert, Director of Governmental and Regulatory Affairs, Department of Health, 109 Governor Street, Richmond, VA 23219, telephone (804) 864-7006, FAX (804) 864-7022, or email joe.hilbert@vdh.virginia.gov.

Background: Item 298 of Chapter 3 of the 2012 Acts of Assembly, Special Session I, reduces the Drinking Water Regulation (50801) line item from $9,393,590 to $8,293,590. To allow the Department of Health to recover the diminished funds, Item 298 B of the act allows for the increase of the Waterworks Technical Assistance Program Fee from the existing $2.05 per connection to a maximum level of $3.00 per connection for community waterworks. Calculations by Department of Health staff indicate a fee of $2.95 per connection for community waterworks is necessary to recover the required funds.

Summary:

The amendments increase the maximum fee to be collected from community waterworks to no more than $3.00 per connection for community waterworks. The statutory maximum fee for community waterworks remains at $160,000 per waterworks.

In addition, several technical changes are made, including changing the date on or before which the department will send a payment form/data verification notice to July 1.

Part I
Definitions

12VAC5-600-10. Definitions.

As used in this chapter, unless otherwise defined, words and terms are the same as those in § 32.1-167 of the Code of Virginia or in 12VAC5-590-20 12VAC5-590-10 (Waterworks Regulations) and shall have the following meaning, unless the context clearly indicates otherwise:

"Board" means the State Board of Health.

"Commissioner" means the State Health Commissioner who is the executive officer of the State Board of Health.

"Community waterworks" means a waterworks which that serves at least 15 service connections used by year-round residents or regularly serves at least 25 year-round residents.

"Customer account" means (i) a metered or unmetered potable water service connection to the customer which is billed in any way by the waterworks owner; or (ii) where any community waterworks sends no billing, the customer accounts shall be defined as equal to the population served divided by four.

"Department" means the Virginia Department of Health.

"Due" means received or postmarked by the stated date.

"Fiscal year" means the year from July 1 to June 30.

"Nontransient noncommunity (NTNC) waterworks" means a waterworks that is not a community waterworks and that regularly serves at least 25 of the same persons over six months out of the year.

"Owner" or "water purveyor" means an individual, group of individuals, partnership, firm, association, institution, corporation, governmental entity or the federal government, which supplies or proposes to supply water to any person within this Commonwealth from or by means of any waterworks.

"Service connection" means the point of delivery of water to a customer's building service line as follows:

1. If a meter is installed, the service connection is the downstream side of the meter;

2. If a meter is not installed, the service connection is the point of connection to the waterworks;

3. When the water purveyor waterworks owner is also the building owner, the service connection is the entry point to the building.

"Waterworks" means a system that serves piped water for drinking or domestic use to (i) the public, (ii) at least 15 connections, or (iii) an average of 25 individuals for at least 60 days out of the year. The term "waterworks" shall include all structures, equipment and appurtenances used in the storage, collection, purification, treatment and distribution of pure water except the piping and fixtures inside the building where such water is delivered.

Part II
General Information

12VAC5-600-20. Purpose of the regulation.

The regulation establishes a waterworks operation fee schedule where the number of customer accounts of a community waterworks is the basis for assessing charges to the community waterworks. The fee schedule for nontransient noncommunity waterworks is based on the waterworks classification being classified as a nontransient noncommunity waterworks. No waterworks owner shall pay more than $160,000 per year per waterworks, nor is it the intent that an owner be charged this fee on water transferred to another waterworks.

12VAC5-600-30. Compliance with the Administrative Process Act.

The provisions of the Administrative Process Act (§ 9-6.14:1 2.2-4000 et seq. of the Code of Virginia) shall govern the promulgation and administration of this chapter.

Part III
Waterworks Operation Fees

12VAC5-600-50. Community waterworks operation fee.

A. An annual waterworks operation fee, not to exceed $160,000, shall be charged as of July 1 of each fiscal year to the owner of each community waterworks in an amount as follows:

For each fiscal year: the number of customer accounts multiplied by no more than $2.05 $3.00.

B. The fee shall be paid to the department and be due as follows:

1. If the fee established in subsection A of this section is $400 or less, the fee shall be due in a lump sum on August 1;

2. If the fee established in subsection A of this section is more than $400, the fee shall be due in a lump sum or equal quarterly installments each year as follows:

a. August 1—The lump sum or first quarterly installment.

b. November 1—The second quarterly installment.

c. February 1—The third quarterly installment.

d. May 1—The fourth quarterly installment.

C. Data verification. The number of customer accounts will be based on the best available data for a maximum period of six months prior to the close of business on June 30 each year as provided by the waterworks' owner or chief administrative officer to the department. This verification shall be provided to the department by the owner of each community waterworks at the address specified in 12VAC5-600-100 and is due by August 1 of each year with the appropriate payment.

12VAC5-600-60. Nontransient noncommunity (NTNC) waterworks operation fee.

A. An annual waterworks operation fee shall be charged as of July 1 of each fiscal year to the owner of each NTNC waterworks as follows:. For each fiscal year:, an amount of no more than $90 per NTNC waterworks shall be assessed.

B. The fee shall be due to the department every November 1.

12VAC5-600-70. Notice.

The department will send to each waterworks owner a payment form/data verification notice as prescribed by the department on or before June July 1 of each year. Failure to receive this notice does not relieve the responsibility of the waterworks owner from providing payments or verification.

12VAC5-600-100. Payments.

Payments are to be made payable to: VDH - Waterworks Technical Assistance Fund and sent to:

Virginia Department of Health

Division of Water Supply Engineering

1500 E. Main Street

Room 109

P.O. Box 2448

Richmond, VA 23218

Office of Drinking Water

Madison Building, 6th Floor

109 Governor Street, Room 622

Richmond, Virginia 23219

12VAC5-600-110. Late fees and administrative charges.

In addition to the powers in 12VAC5-600-40, operation fees not received or postmarked by the due date shall be subject to interest, administrative charges, and late penalty fees in accordance with § 2.1-732 § 2.2-4805 of the Code of Virginia.

FORMS (12VAC5-600)

Bill/Invoice for Payment of the Waterworks Operation Fee (if more than $400), (rev. 1998).

Bill/Invoice for Payment of the Waterworks Operation Fee (if $400 or less), (rev. 1998).

Waterworks Operation Fee - Invoice/Data Verification Notice - less than $400 (rev. 7/12).

Waterworks Operation Fee - Invoice/Data Verification Notice - more than $400 (rev. 7/12).