CWR Notice of Meeting – 07/17/18


Chester County Wastewater Recovery
Regular Commission Meeting

Tuesday, July 17, 2018
6:00 PM

CWR Office
3261 Lancaster Highway, Richburg




I. Call Meeting to Order


II. Invocation


III. Pledge of Allegiance


IV. Approval of Last Meeting Minutes


V. Old Business

  1. Lando/Manetta & Rocky Creek Updates
  2. Sandy River Update
  3. Pretreatment Update
  4. Project Updates

VI. New Business

  1. Capital Recovery Fee Resolution
  2. Public Comment

VII. Reports

  1. Financial Statement

VIII. Executive Session
Under Section 30-4-70(a)(2) – to discuss two (2) Contractual Matters


IX. Adjourn


This Agenda is subject to change up to 24 hours prior to such meeting.

CMD Rate & Fee Changes

Chester Metropolitan District (CMD) will be changing its water rate structure beginning in late summer of 2018. The CMD Board of Commissioners endeavored to develop a rate structure that was equitable to residential customers.  CMD hired Raftelis from Charlotte, North Carolina to review our existing water rate structure and propose a rate structure that will strike a fair balance between residential and industrial customers.

Effective September 1, 2018, CMD will no longer charge customers through a “declining block” water rate structure. A declining block water rate structure caters to large (mostly industrial) water users because the price per gallon of water goes down as water usage goes up.  Under the new structure, all customers – residential and industrial – will now have a “base rate” calculated on meter size and will pay the same flat rate per 1000 gallons of water used.  This new flat rate is $7.19 per 1000 gallons.

Customers will no longer see additional fees, such as the “Residuals Management Fee”, “DHEC Fee”, and “Capital Projects Fee.” Those charges are no longer listed as separate line items on the water bill and the charges have been included in the base rate charge and the uniform water rate.


Table One – Old Rate and New Rate Comparison


CMD’s 2017 Revenue Bond Resolution calls for a 7% water rate increase each year over the next few years.  A 7% water rate increase has been applied to the new water rate structure this year.  However, most residential customers can expect to see a decrease in their average monthly water bill, as evidenced above in Table One.

Referencing Table One, the column designated as Current Charges represents existing water charges under the old rate structure.  The column designated as 7% Increase Charges increases the current water charges by 7%.  The column designated Proposed Charges ¾” represents the new water charges using the new water rate structure.  The last column designated as Savings represents the reduction in new water charges versus the old water charges with a 7% rate increase.

The new water rate schedule met the goals of the CMD commission to develop a water rate and water rate schedule that is fairer to residential customers than the old water rate schedule.  The new water rate schedule and the proposed 2018-2019 CMD Budget were presented in two public hearings at the Chester County Library on June 27, 2018.  The public hearings were held at 2 pm and 5 pm in the Jean White Room.  The 2018-2019 CMD Budget was approved in a special call meeting of the CMD Commission held on June 29, 2018.



Capital Recovery Fees for Water are in Effect

Chester Metropolitan District (CMD) has begun the process of imposing Capital Recovery Fees for all new development in Chester County. Customers who apply for new taps (new service; one not currently connected to CMD’s water system) will be subject to these fees, as advertised in previous articles.  The proposed capital recovery fee schedule was presented in a public hearing at the Gateway Conference Center at 6 pm on May 31, 2018.  The CMD Commission approved the capital recovery fee schedule at the June 12, 2018 monthly board meeting.


CMD Program and Fee Changes


The Chester Metropolitan District wishes to reminds its customers that the Capital Recovery Fees program is now active. All new development will be subject to Capital Recovery Fees based on the approved fee schedule.

For more information, please visit our Capital Recovery Page.


The Chester Metropolitan District has implemented Engineering Review Fees for project and plan review. To review the fee schedule, please CLICK HERE.


CMD will soon require that all Backflow Test Results be submitted online. As has been policy in the past, a $12.00 fee will be charged for each submitted backflow result at the time of submittal.

Once the submission portal is online,  we will provide more information.


CMD Notice of Public Hearing: 2018-2019 Budget

The Chester Metropolitan District will hold a public hearing in the Chester County Library’s Jean M. White Room, located at 100 Center Street at 5:00 P.M. on June 27, 2018 for the purpose of public input concerning the proposed Budget for the fiscal year 2017-2018.

The Chester Metropolitan District has contracted with Raftelis of Charlotte, North Carolina to develop a new water service rate schedule, as outlined below.

This new water service rate schedule will go into effect for all customers beginning September 1, 2018.

Water Service Base Rate

(Based on Meter Size)

3/4″  $    14.35
1″  $    21.52
1.5″  $    39.26
2″  $    60.64
3″  $  110.56
4″  $  181.87
6″  $  359.96
8″  $  573.76
10″  $  823.27

Volumetric Usage Rate

per 1,000 Gallons  $      7.19

The following fees will go into effect July 1, 2018:

Fire Line Fees
    Current   |  Proposed
10”  $    203.95  |  218.00
8”  $    193.15  |  207.00
6”  $    163.44  |  175.00
4”  $    135.07  |  145.00
Tap Fee
  Current     |  Proposed
1″ or smaller, simple install  $ 1,391.00 | 1488.00
All others — Cost of Installation
Other Fees
  Current     |  Proposed
Non-Payment Fee*  $      45.00
After Hours Reconnect Fee  $      65.00 | 69.00
Pulled Meter Fee  $      65.00 | 69.00
Late Fee  $        3.00

Engineering Fees

Backflow Test Fee  $    12.00 per result
Plan Review Fees  See Review Fee Schedule

Hydrant Meter Fees**

Refundable Deposit  $  100.00
Single Day Permit  $    50.00
15-Day Permit  $  100.00
30-Day Permit  $  200.00 renewable before expiration
Relocation Fee  $    35.00

*Non-Payment Fee – replaces the “Reconnect Fee”

** Hydrant Meter Fees – replaces the “Hydrant Meter Permit Fee”


FY 2017-2018             FY 2018-2019          Percent Change

Revenue                           $6,437,536                  $7,221,548                  +12.17%

Expenditures                     $6,437,536                  $7,221,548                  +12.17%


The Chester Metropolitan District does not receive revenue through taxation.

Capital Recovery Project

Water Capital Recovery Fees Project

Chester Metropolitan District


The Chester Metropolitan District presents for public view and comment the findings of the Water Capital Recovery Fees study. Below are the proposed fees, as well as a copy of the full report. A public hearing is scheduled for Thursday, May 31, 2018 at 6:00 PM at the Gateway Conference Center in Richburg to discuss this project. Please direct any advance comments to the included form or call our office at (803) 385-5123.

For additional information, please visit our Capital Recovery Category.


Proposed Capital Recovery Fees

Single ¾” Water Service Connection                         $ 1,045.00 (per each)

Single 1” Water Service Connection                          $ 1,740.00 (per each)

Single 2” Water Service Connection                          $ 5,575.00 (per each)


Use the formula below to calculate the capital recovery fee (CRF) for water meter sizes 3” to 10” based on daily water demands requested by the owner/developer and detailed in Chester Metropolitan District’s Willingness and Capability Letter to the owner/developer.


CRF = (Water Demand, gal/day) x 1.4 x 1.25 x $1.99

System Peaking Factor = 1.25

Water Loss Factor = 1.4


Proposed Collection of Capital Recovery Fees

Single ¾” Water Service Connection – Capital Recovery Fees will be paid at the time that the tap fees are paid.

Residential Subdivisions – 50% of the Capital Recovery Fees will be paid up front based on the number of lots on the approved plat and 50% paid at the time that the tap fees are paid.

Commercial/Industrial Water Connections – 100% of the Capital Recovery Fee will be paid at the time of the issuance of the Willingness and Capability Letter by Chester Metropolitan District.  Fees will be based on daily water demands provided by the owner/developer’s design engineer.  If, after one year, the actual daily water demands are in excess of the design engineer’s estimation which were used to determine CRF’s, the owner/developer will be assessed additional CRF’s to cover the excess water demand.

Fire Supply Line Connections – 100% of the Capital Recovery Fee will be paid at the time of the issuance of the Willingness and Capability Letter by Chester Metropolitan District.  Fees will be based on the quantity of water required over the specified period of time necessary to meet fire code requirements.

Download a copy of the full Water Capital Recovery Fees Report.



Public Comment

All fields are required for submission. Information collection is for analytical purposes only. Your information will remain confidential and will not be given, sold, or otherwise transferred to another party for any purpose.

Please note: this form is for Capital Recovery Project Comments only. The recipient will not respond to any other comments made using this form.

Thank you for participating in our project!


Water Capital Recovery Fees Explained

Funding Future Water System Expansions

Water Capital Recovery Fees Explained


What Are Capital Recovery Fees?

Chester Metropolitan District is moving forward with Capital Recovery Fee charges.  Capital Recovery Fees are charges imposed by a water utility upon new development to tie onto the water system and use existing water supply capacity that has already been paid for by the existing customer base. Capital Recovery Fees easily and fairly distribute the burden of providing additional potable water capacity from the water utility and its existing customers to new customers as a result of new development. The fees are collected from new industries, new commercial businesses, new residential construction, and new water taps, and they allow the new customer to “buy-in” to the remaining water capacity that Chester Metropolitan District (CMD) has available. The Capital Recovery Fees will also help fund large-scale water system capital improvement projects such as water treatment plant expansions, upsizing water transmission mains, and water line extensions that will be necessary to keep pace with future economic development and residential growth in Chester County.


Who Do Capital Recovery Fees Impact?

Capital Recovery Fees impact new development and new connections. For the purposes of this fee, a “development” can be a new home, apartment complex, business, industry, or other establishment which connects to the public water system. The fee itself is normally paid by the developer before the resident or business moves into the building. In some cases, established residents and businesses who were previously on private wells may be impacted, as the fee is assessed to any new connection to our system.

Capital Recovery Fees are not charged to current customers with existing connections to the system; however, current customers will be assessed the Capital Recovery Fee for new or additional water taps.


What Do Capital Recovery Fees Do?

Capital Recovery Fees are a source of capital financing used to help water systems recover the investment in capacity allocated to new customers. Capital Recovery Fees paid to the water system are earmarked specifically to offset the capacity related costs, which include expanding the water filtration plant, installing new mains, or adding booster pump stations and new water tanks to serve growth.

The Capital Recovery Fees can be used to pay construction costs or to help pay back notes, loans, and bonds that are used to fund large water system projects to increase capacity. The implementation of the fees will not eliminate normal, periodic water rate increases to account for inflation, materials cost increases, increased operations and maintenance expenses, and ongoing repair and replacement of aging infrastructure.


How are Capital Recovery Fees Calculated?

Chester Metropolitan District recently contracted with Raftelis Financial Consultants (Raftelis) in Charlotte, North Carolina to perform a Capital Recovery Fee Study. The results of this study explained, in the simplest terms, how the fees are calculated and what Fee is considered fair for CMD to charge.

RFC collected historical data from CMD, including fixed asset data, outstanding debt, a complete list of water capacity infrastructure (water plant capacity, size and length of mains), and estimated daily water loss. Using the historical data to determine the value of CMD’s system assets, Raftelis calculated a “Replacement Cost” of the infrastructure we currently have, which values the system in today’s dollars. The Replacement Cost is reflected as a “Cost per Gallon per Day”, or “Cost per GPD”, and was calculated to be $1.99 per gallon per day to replace core system assets.

Second, RFC collected customer usage data to develop an “Equivalent Residential Unit”, or ERU. This is the estimated level of demand per customer based on a ¾” water meter. Residential average daily demand was determined to be 300 gallons per day per residence.  RFC also computed a “System Peaking Factor”, or the ratio between average water production and maximum water production (maximum annual daily peak demand).  This is to account for periodic high water usage a customer may have from time to time and the System Peaking Factor was calculated to be 1.40.  A Water Loss Factor was also developed to account for lost water resulting from water theft, water line flushing, firefighting, and water system leakage that is estimated to occur throughout the water system.  The Water Loss Factor was determined to be 1.25.  To compute the cost of an ERU you must first calculate the number of gallons that make up an ERU.  The number of gallons is calculated as follows:

Adjusted GPD = 300 gal. per day X  1.4 (System Peaking Factor) X 1.25 (Water Loss Factor) = 525 GPD


To calculate the cost of an ERU, the cost per gallon per day for water ($1.99) is multiplied by the the Adjusted GPD.  The cost of an ERU is as follows:


ERU = $1.99 (Cost per Gallon per Day) X 525 GPD = $1,044.75 (Rounded to $1,045.00)


The cost of one ERU is $1,045.00 for a single ¾” residential water meter. As meter size increases, the number of ERUs associated with that meter also increases.

To Calculate Capital Recovery Fees for 1” and 2” water meters, a “Capacity Ratio” is used to determine the number of ERUs associated with that meter size based on a ¾” water meter. For example, a 1” water meter has a Capacity Ratio of 1.6667, which means a 1” meter can flow 1.6667 times more water than a ¾” meter under normal conditions.  A 2” water meter has a Capacity Ratio of 5.3333, which means a 2” meter can flow 5.3333 times more water than a ¾” water meter under normal conditions.  Therefore a 1” water meter has a Capital Recovery fee of (1.6667 X 1,045.00) = $1,741.70 (rounded to $1,740.00) and a 2” water meter has a Capital Recovery Fee of (5.3333 X 1045.00) = $5,573.30 (rounded to $5,575.00).

The Capital Recovery Fee for  large commercial and industrial connections with water meter sizes ranging from 3” to 10” will be based on the requested average water demand in gallons per day times the Cost per Gallon per Day of $1.99.  Average water demands will be adjusted using the system peaking factor and the water loss factor.  The capital recovery fee for a prospective industrial customer with an average daily water demand of 100,000 gallons per day is computed as follows:

100,000 GPD X 1.4 (System Peaking Factor) X 1.25 (Water Loss Factor) X $1.99 =$348,250.00


The Bottom Line

Capital Recovery Fees are not new. Water utilities and municipalities across the country have been charging Capital Recovery Fees for years to help pay for expansions to water and wastewater systems to serve new growth. York County, the City of Rock Hill, and Lancaster County charge capital recovery fees for new development. It is the fairest way to pass on the cost of new growth to those who are developing new sites. History has proven that Capital Recovery Fees do not adversely impact growth. Fort Mill and Indian Land are two examples.

The full Capital Recovery Fee report and draft Capital Recovery Fee Schedule will be available on our website in mid-April 2018. Chester Metropolitan District will conduct a public hearing in April 2018 to receive comments on the proposed Capital Recovery Fees and Capital Recovery Fee Schedule.  Comments can be mailed to Chester Metropolitan District at P.O. Box 550, Chester, South Carolina 29706 or submitted by Clicking Here.