Customer Letter
July 17, 2023
OUTLET BAY SEWER DISTRICT
149 Outlet Bay Road
Priest Lake, ID 83856
July 17, 2023
Dear Valued Customer:
The Outlet Bay Sewer District Board of Directors has reviewed our historical expenditures versus our income and have completed a review of the 2023 Wastewater Facilities plan which has been submitted to the Department of Environmental Quality (DEQ) for its review and approval.
During this process, we have determined that a change in our Operating and Maintenance Fees (O&M Fees) is required so that we are no longer operating at a deficit. As outlined in the OBSD History document that was sent out to our customer base earlier this year, our present O&M rates have fallen well below the rate of inflation. Additionally, we are introducing a new Commercial Rate structure which will more fairly distribute the costs of operating and maintaining our infrastructure.
The attached documents outline the definitions and terminology used throughout our discussions and additionally define the residential and commercial O&M fee structure which will be implemented on October 1, 2023.
Our O&M fees are presently $40 per month per ER (Equivalent Residential Unit) and are invoiced quarterly. The new fee beginning October 1st will be $50 per month per ER. This fee is used for the operating and maintenance of our existing infrastructure, not for any capital improvements or capacity expansion. This fee increase represents a 25% increase in the cost for our residential customers, which is the first increase since 2016. Our infrastructure is aging and requires repair and replacement and is simply not optional. The cost of parts and materials have increased dramatically since 2016, as have other costs such as excavation and many other items. This rate increase will allow us to continue to operate our facility in accordance with the requirements of the DEQ.
Due to the new commercial fee structure, some of our customers will be negatively impacted by significantly larger fees than they are currently being assessed. In order to ease the burden for customers that face an increase in excess of 50% of their current rate, we will phase in the new fees over a three-year period beginning October 1, 2023:
October 1, 2023 – September 30, 2024 – Existing rate + 0.333* increase
October 1, 2024 – September 30, 2025 – Existing rate + 0.666* increase
October 1, 2025 and beyond – new full rate
No one likes to see increases in expenses, and we share that sentiment. We are working tirelessly to provide sewer services to all of our customers in our service area at the lowest possible rates while still meeting or exceeding all regulatory requirements of operating our system. We also aim to keep Priest Lake the pristine and magical gem that it is.If you have specific questions or concerns, please submit them in writing to our office. You are also welcome to participate in the board meetings which are held every third Thursday of the month at 4:00 p.m. at the District Office at 149 Outlet Bay Road, Priest Lake, Idaho.
We ask that if you wish to address the board at one of our monthly meetings, please submit a written statement one week prior to the meeting as a courtesy to the board.
Sincerely,
Board of Directors
Outlet Bay Sewer District
OUTLET BAY SEWER DISTRTICT
TERMS, DEFINITIONS AND ABBREVIATIONS
EQUIVALENT RESIDENTIAL UNIT (ERU or ER)
This term describes a typical residential household.
SYSTEM DEVELOPMENT CHARGE (SDC)
This term describes the fee that a new service connection to the sewer district infrastructure pays to help the district add capacity to the existing infrastructure for this new service. Please note that this fee is in addition to any additional fees for the equipment and physical connection to the infrastructure. This fee is assessed for any new subscriber (parcel) within the Outlet Bay Sewer District service area whether or not the parcel physically connects to the infrastructure.
This is a one-time charge paid by a new subscriber for system capacity. The receipts from this charge are used to finance the development of capacity related facilities or growth-related service payments, as well as to pay for system capacity that was added previously in anticipation of the new connection.
If the parcel’s sewer usage is greater than one ER, the SDC charge (which is typically a single SDC charge per residential parcel) will be evaluated and charged based on the parcel’s Sewer Classification.
The Outlet Bay Sewer Board of Directors shall review and determine if additional SDC fees are necessary for any existing customers who make changes to their property/business that significantly increases the amount of sewer volume.
Examples:
--Existing laundromat is remodeling and adds 25 washing machines
--A boarding house with 8 bedrooms is built on a residential lot
--Retail store is converted into a restaurant/bar
--A parcel is subdivided into more than one parcel
The SDC will not be refunded to customers whose properties sewer volume is no longer greater than typical residential property.
Examples:
--A laundromat is converted into a gift store
--RV Park with 28 spaces is replaced with 2 residential homes
--A group of parcels are combined to become a single parcel
OPERATIONS & MAINTENANCE FEE (O&M)
This term describes the recurring fee paid by subscribers to the Outlet Bay Sewer District infrastructure for active connections. These fees are typically charged quarterly. Please note that these fees are not adjustable for seasonality because our infrastructure requires the same operational and maintenance expenses year-round, regardless of flow volumes.
The Operating and Maintenance Fee (O&M) is a monthly service charge imposed upon customers to recover the cost to operate, maintain, and reinvest into the sewer system. O&M fees are based on the parcel’s classification which relates to sewer usage. (See Sewer Customer Classifications and O&M Rates).
HOOK-UP FEE
This term describes the cost of physically connecting to the infrastructure. This fee covers the cost of OBSD personnel approving and overseeing the installation of physical connections that adhere to the requirements of OBSD, as well as making the physical connection from the subscriber’s equipment to the shared infrastructure. Additional costs such as excavation, septic tank, pump, plumbing and wiring are all separate from the Hook-Up Fee and are paid by the subscriber in addition to the Hook-Up Fee.
A one-time Hook-up Fee will be charged when a subscriber’s parcel is connected to the sewer system. A residential parcel will be charged a single Hook-Up Fee per ER. A commercial parcel will be charged a Hook-Up Fee based upon the ER calculation.
ACCESSORY DWELLING UNIT (ADU or Guest House)
This is defined as an accessory building that contains living accommodations which includes bedroom(s), kitchen, and a single bathroom. Bonner County currently allows one ADU per parcel. The ADU must be less than 900 square feet and a maximum of 2 bedrooms. There is no separate SDC for adding an ADU to a parcel that has already paid a SDC for the parcel.
ACCESSORY BUILDING
This is defined as a detached subordinate building on a residential parcel, not used as a living accommodation, located on the same parcel as the main building or structure to which it is an accessory, the use of which is naturally or customarily incidental and complementary to the main use of the residence.
EXAMPLE:
--Shop, Garage, Playhouses, Storage Buildings, Garden Structures, Greenhouse,
and Other similar residential buildings
OUTLET BAY SEWER DISTRICT
SEWER SERVICE CLASSIFICTIONS
All Residential and Commercial parcels will be charged a quarterly Operating and Maintenance Fee which is a minimum of 1 ER once connected to the sewer district system but may be higher depending upon the classification of the parcel.
RESIDENTIAL
Residential shall be deemed to mean a separate dwelling occupied by one household with a single connection to Outlet Bay Sewer District system. A residence may be site-built or manufactured.
EXAMPLES:
House
Manufactured House
Shop/Living Quarters “Shouse” or “Barndominium”
Condominium (building or complex of buildings containing a number of individually owned or leased
apartments houses)
RV – Allow up to 3 (not rentals – personal use only)
Apartment Complex (1ER per apartment, 2ER per duplex, 3ER per Triplex)
Residential rates will apply to “long-term” residential rentals occupied by one household. Long-term are rentals occupied by one renter or lease holder greater than 6 months per year.
Accessary Dwelling Unit (ADU) is an accessary building that contains living accommodations which includes bedroom(s), kitchen and bathroom. Bonner County allows one ADU per parcel. The ADU must be less than 900 square feet and a maximum of two bedrooms.
-Residential customer will be charged 1 ER for an ADU.
-If an ADU is rented or leased as a Commercial Housing unit, Commercial Housing rates will apply.
-Please note that Accessory Building (not an ADU) are not charged for an ER due to their classification as a non-living space.
Guest RV Hook-up is an RV sewer connection on a residential lot used solely for a customer’s occasional guests. If at any time the Guest RV Hook-up is rented and/or occupied over 30 consecutive days, the Residential customer will be charged an additional .333 ER per RV Hook-up. (Occasional = infrequent or irregular intervals, now and then)
Commercial Housing: Commercial Housing shall be deemed any dwelling or location used and occupied for temporary or short-term stays in exchange for payment of a fee or provided with employment.
-RV Park = 1 ER + .333 ER per RV Hook-up
-Campground Campsites = .333 per campsite
-Motel/Hotel = 1ER +
Motel w/kitchen = .30
Motel = .15
Hotel w/kitchen = .30
Hotel = .15
-Boarding House – a boarding house is a house in which lodgers rent one or more rooms for one or more nights and sometimes for extended periods of weeks or months. A boarding house is also commonly known as Employee Housing.
1ER + .15 per bedroom
-Apartment in Commercial Building –
Permanent residence or long-term residential rental = 1ER
Commercial Housing Rental = 1 + .15 per bedroom
-VRBO/AirB&B/Short-term Rental Property – Advertised residential houses or apartments being rented as vacation rentals.
1ER + .15 per bedroom
COMMERCIAL BUSINESS
Home Business: It is recognized that some Residential customers operate small businesses from their homes to provide goods and services. Residential customers falling under this category would be charged the Residential rate of 1 ER as long as the home business does not increase the amount of sewer volume. Home Businesses do not have store fronts and/or public restrooms.
EXAMPLES:
Snow Plowing
Taxidermist
Wood Working
Painter
Electrician
Construction
Landscaping
Bookkeeper
Home Day Care (6 or less children; Idaho State does not require license)
and similar businesses)
If at any time the sewer volume exceeds the amount of a typical residential sewer customer and/or their business significantly changes, the Sewer District Board of Directors will re-evaluate the sewer rate of the Home Business customer and make changes accordingly.
Commercial 1: Commercial 1 customer will have a wastewater volume that is domestic in character and on an average basis does not exceed Residential customers. A Commercial 1 customer will be charged 1 ER unless they are attached to a Commercial Complex.
EXAMPLES:
Professional Offices
Retail Sales
Northern Lights
Public Library
Gym/Workout
Barber/Beautician (small shop)
Post Office
Expresso
Commercial 2: Commercial 2 customers will have an average wastewater volume that is greater than Commercial 1 classification. Sewer ERs for Commercial 2 customers will be determined using the following guidelines adopted by the Outlet Bay Sewer District.
Restaurant 1ER + # of chairs x .05 ER
Tavern/Bar 1 ER + # of chairs x .05 ER
Gas Pumps # of pumps x .20 ER
Laundromat 1 ER + .10 ER per washing machine
Day Care (7 or more children) 1 ER + # of children/staff x .075 ER
School 1 ER + # of students/staff x .125 ER
Car Wash Currently not allowed in district
Commercial Complex: Any development such as a shopping center, office park or industrial park, which consists of two or more establishments on a single platted lot, or which is designed, developed and managed as a unit.
The sewer district currently has four Commercial Complexes: Tamrak Gas/Grocery, Tamrak Hardware/Village, The Little Store and Hill’s Resort. The guideline for calculating ERs for Commercial Complexes is as follows:
Anchor Store = 1.25 ER
Commercial 1 Business = .25 ER
Commercial 2 Business = 1 ER + calculation
Residential Rental = 1 ER Long-term residence (greater than 6 months)
Commercial Housing = 1ER + .15 per bedroom (less than 6 months)
Example: XYZ Commercial Complex:
Anchor Business (Gas/Grocery) + 1.25 ER
Gas Pumps 4 x .20 + 1.00 ER
Retail Store + 0.25 ER
Expresso + 0.25 ER
Tavern 1 ER + (30 x .05 ER) + 2.50 ER
Laundromat 1 ER + (29 X .10 ER) + 3.90 ER
Long-term Residential Rental + 1.00 ER
Total 10.15 ER
Exceptions:
The district has granted free sewer connections and/or no O&M charges for the following customers:
West Priest Lake Fire District
Priest Lake Ambulance
Memory Gardens
Any sewer use that cannot be classified in one of the above classes shall have its ER computed on an individual basis by the Outlet Bay Sewer District. Special problems or conditions can be appealed to the Outlet Bay Sewer District Board by written notice, and will be considered on an individual basis.
Upon significant change in the usage of a commercial business (such as a change in occupancy of a connected business), the Board will review the classification upon request. Changes will be considered on a semi-annual basis.
