Nevada County Municipal Code Ch. 5 Equivalent Dwelling Units

It is the intent of this Chapter to provide a procedure allowing property owners who hold the rights to excess sewer capacity ("Equivalent Dwelling Units") to relinquish those allocated units of unconnected sewer capacity. It shall also provide a procedure allowing property owners to acquire sewer capacity. However, each such relinquishment and acquisition must be wholly within the same sewer zone. This Chapter is not intended to and shall not be construed so as to create any obligation or duty upon the District to approve any request for relinquishment or acquisition of sewer capacity.

(SD-36. (07/08/1997); SD-75. 11/07/2023)

A. Relinquishment.

1. Notification. Any property owner who has unused or excess sewer capacity rights may submit a written notification to the District offering to surrender such rights back to the District or, through the District, to other property owners within the same zone. Any lenders having a secured interest in the property shall consent to the surrender in writing. The notice shall be on a form provided by the Sanitation District and shall be notarized. However, the District is under no obligation to acquire EDUs. Relinquishment shall be authorized on a first come, first served basis. As used herein, first come, first served shall be determined by the date that the District receives a completed application and fee.

2. Revocation. Once filed, the notice may only be revoked by giving written notice. Revocation shall not be permitted if the District has authorized transfer of that EDU to another property owner prior to the effective date of the attempted revocation and there are no other EDUs available.

3. Assessments.

a. Upon receipt of a request from the District, the Treasurer/Tax Collector shall provide the District with a statement showing the present status of any sewer assessment bonds secured by the relinquishing property.

b. No surrender of EDUs shall be permitted if there are any unpaid assessment liens on the relinquishing property for the EDUs offered for surrender. (Assessment liens may be removed by complying with the relevant provisions of Cal. Sts. & High. Code §§ 8766 and 8766.5). The relinquishing property shall remain liable for all assessment payments for EDUs which remain with and are secured by the property. A partial lien release shall be recorded by the District with the County Recorder reflecting the release of the lien for the EDUs which are paid off and surrendered.

c. Relinquishing property owners will continue to be liable for all assessments, including Operation and Maintenance and Capital Improvement assessments, until surrender is completed. At the time of the surrender, fees shall be prorated through the month of delivery with the entirety of the month favoring the relinquishing property.

B. Acquisition. Any property owner who desires to acquire sewer capacity rights may submit a written application to the District offering to acquire such rights. Such application shall be on a form provided by the Sanitation District and shall be notarized. The application fee which is established by resolution by the Board of Directors of the Sanitation District shall accompany the application. If the District holds any unallocated EDUs, they shall be assigned prior to allowing EDUs to be surrendered from another property. If no EDUs are available for a requesting party, the District shall hold the application requesting EDUs for two (2) years. As EDUs become available, they will be acquired on a first come, first served basis by applicants with applications on file. To remain in effect, an application must be renewed every two (2) years. If an application is renewed prior to the expiration date, the applicant shall maintain their place in line for a future acquisition. The application is transferable if requested in writing to the District by a subsequent purchaser of the acquiring property without losing the original applicant's place in line. Before a property owner can acquire EDUs, the acquiring property must be zoned to reflect the zoning which would be consistent with that number of EDUs for that property after acquisition.

C. General Provisions. All applications to relinquish and/or acquire EDUs must be approved by the District Engineer or their designee. No surrender shall be approved if the relinquishing property would become undevelopable by virtue of the lack of available sewer service. The District reserves the sole discretion to determine if surrender of capacity will leave a property without adequate sewer capacity. All relinquishments and/or acquisitions shall be in compliance with District ordinances, policies and procedures. Relinquishments and acquisitions shall be evidenced by the adoption of a resolution identifying the properties relinquishing and/or acquiring the EDUs and the number of EDUs being relinquished or acquired. Said resolution shall be recorded.

D. The provisions of this Section shall be subordinate to Section 30.05.060, below, concerning the allocation of the Penn Valley Zone 6 original thirty-four (34) unallocated EDUs until there are no original unallocated EDUs remaining in that account.

E. The cost of relinquishment and/or acquisition shall be the actual and direct costs of the EDU to the relinquishing property owner plus any fees required by the District. If the relinquishing property owner has paid the assessment for a surrendered EDU in full, the property owner may receive full reimbursement. The costs shall be determined by the District. These reimbursement fees shall be paid to the District which shall distribute the reimbursement, plus the applicable interest, to the relinquishing property owner.

F. A property owner acquiring EDUs shall be fully liable for all sewer connection or pipeline installation costs and any other charges in place at the time of the acquisition. The District reserves the sole discretion to determine if a property can feasibly be connected to the sewer system. If any easements are required in order to connect the acquiring property to the sewer system, the property owner acquiring the EDUs shall be responsible for obtaining the necessary easements and shall pay whatever costs are required for those easements, including, but not limited to, surveying costs, District staff costs and any attorneys fees associated with obtaining the easements. The easements shall be in the name of the Sanitation District and shall be on an easement deed in a form approved by the County Counsel.

G. If a property owner desires sewer service for property located outside District boundaries, the property owner shall be required to annex that property to the District through the Local Agency Formation Commission (LAFCo) prior to granting of sewer capacity to the property. The applicant shall be responsible for the processing and payment of all fees charged by LAFCo. District charges for its participation in the annexation process are separate from and in addition to the LAFCo charges.

(SD-36. (07/08/1997); SD-60. (06/12/2007); SD-75. 11/07/2023)

A. Purpose and Intent. The exclusive procedure for donation of one (1) or more EDUs in Zones 4, 6, and 8 is set forth in this Section. Donation is not expressly or impliedly covered by the procedure in Section 30.05.020 entitled "Relinquishment or Acquisition of Allocated Unconnected and Unallocated Sewer Capacity Applicable to District Zones: 4, North San Juan; 6, Penn Valley; and 8, Cascade Shores." Section 30.05.020 covers relinquishment and acquisition as a transaction for value because, pursuant to 30.05.020.E, the relinquishing property owner must be reimbursed by the acquiring property owner for "…the actual and direct costs of the EDU to the relinquishing property owner plus any fees required by the District."

B. Donation of Excess Sewer Capacity (EDUs). Notwithstanding anything to the contrary in Section 30.05.020, this Section shall control as to any donation of an EDU. After written notice to the District, one (1) or more EDUs may be donated by an owner to another owner of property in the same zone if the EDUs are unused and excess capacity. For purposes of this Section, the word "donated" means that no cost is incurred by the acquiring owner, other than District fees, and that no reimbursement whatsoever is made to the donating owner. Sections 30.05.020.A.3, 30.05.020.C, 30.05.020.F, and 30.05.020.G shall apply to each and every donation. In accordance with Section 30.05.020.C, the donation shall be evidenced by adoption of a District resolution that shall be recorded.

(SD-66. (05/12/2009); SD-75. 11/07/2023)

A. Relinquishment.

1. Notification. Property owners holding excess EDUs may submit an application to the District offering them for surrender. However, the District is under no obligation to acquire EDUs.

No surrender of sewer capacity shall occur if it would leave the property without adequate sewer capacity. The District reserves sole discretion in this matter.

2. Revocation. Property owners may file a request for revocation of surrender of EDUs by giving written notice to the District, provided the request does not interrupt a transfer in progress.

3. Assessments. No surrender of EDUs shall be permitted if there are any unpaid assessment liens on the relinquishing property for the EDUs offered for surrender. (Assessment liens may be removed by complying with the relevant provisions of Cal. Sts. & High. Code §§ 8766 and 8766.5). The relinquishing property shall remain liable for all assessment payments for EDUs which remain with and are secured by the property. A partial lien release shall be recorded by the District with the County Recorder reflecting the release of the lien for the EDUs which are paid off and surrendered.

B. Acquisition. Any property owner who desires to acquire EDUs may submit an application to the District. The application shall be on a form provided by the District and shall be notarized.

If no EDUs are available, the District shall hold the application for two (2) years. The application is transferable if requested in writing to the District by a subsequent purchaser of the property.

Before a property owner can acquire EDUs, the property must be zoned as to be consistent with the number of EDUs being acquired.

A property owner acquiring EDUs shall be fully liable for all sewer connection or pipeline installation costs and any other charges in place at the time of the acquisition. The District reserves sole discretion in determining if a property can feasibly be connected to the sewer system.

If any easements are required in order to connect the property to the system, that property owner shall be responsible for obtaining the necessary easements and shall pay whatever costs are required including, but not limited to, surveying costs, District staff costs, and any attorneys' fees associated with obtaining the easements. The easements shall be in the name of Nevada County Sanitation District No. 1 and shall be on an easement deed as approved by the District.

C. General Provisions. All applications to relinquish and/or acquire EDUs must be approved by the District Engineer, or their designee. No surrender shall be approved if the relinquishing property would become undevelopable by virtue of the lack of available sewer service. The District reserves the sole discretion to determine if surrender of capacity will leave a property without adequate sewer capacity. All relinquishments and/or acquisitions shall be in compliance with District ordinances, policies and procedures. Relinquishments and acquisitions shall be evidenced by the adoption of a resolution identifying the properties relinquishing and/or acquiring the EDUs and the number of EDUs being relinquished or acquired. Said resolution shall be recorded.

The cost of allocated unconnected sewer capacity shall be determined by agreement between the parties of the transfer. The cost of acquiring unallocated sewer capacity shall be based upon the value agreed to by the parties involved. A copy of the parties' written agreement must be presented to the District.

District staff charges (established by Nevada County Sanitation District No. 1 Board) on behalf of the applicants shall be paid within twenty (20) calendar days of receipt of notification. All charges received by the District shall be deposited into a designated fund. Any District charges collected from the parties of a transaction which exceed District costs shall be returned to the original payee.

If a property owner desires sewer service for property located outside District boundaries, the property shall be annexed to the District through the Local Agency Formation Commission (LAFCo) prior to the granting of EDUs.

The applicant shall be responsible for the processing and payment of all LAFCo charges. District charges for its participation in the annexation process are separate from and in addition to LAFCo charges.

Sewer capacity reallocation shall be evidenced by the adoption of a District resolution identifying the properties and the number of EDUs surrendered or acquired. Said resolution shall be recorded.

The provisions of this Section shall be subordinate to Section 30.05.060 below, concerning the allocation of the Penn Valley Zone 6 original 34 unallocated EDUs until exhausted.

(SD-36. (07/08/1997); SD-60. (06/12/2007); SD-75. 11/07/2023)

A. Intent. The procedure for allocation and reservation of EDUs arising from increased plant capacity in Zones 1 and 2 is set forth in this Section. The allocation of EDUs occurs by District assignment. Assignment may commence when the new plant capacity is under construction. Property owners of parcels of real property located within the Zone, or to be annexed into the Zone, are eligible to apply for an EDU allocation from the pool of unallocated EDUs, except that the pool shall not include those unallocated EDUs that are being reserved for a public entity.

B. Policy on Reservation of EDUs. Unallocated EDUs may be reserved for acquisition by one (1) or more public entities needing sewer service in the Zone. A "Contract for EDU Reservation" may be executed by the District at any time during its planning of future increased capacity. The District shall provide written notice to all potentially affected public entities so that any competition for reservations is fair.

Reservations shall be made by contracting with the District on mutually agreeable terms and conditions subject to the following: (1) No single public entity shall be eligible to reserve more than ten percent (10%) of the pool of unallocated EDUs; and (2) cumulatively, reservations of EDUs shall not exceed fifteen percent (15%) of the pool of unallocated EDUs; and (3) the cost of each EDU shall be the actual cost determined by the District at the time of acquisition, as opposed to the time of reservation; and (4) the District shall serve notice of its intent to terminate a reservation when the original pool of unallocated EDUs has been reduced by allocations and reservations amounting to approximately sixty percent (60%) of the total new increased capacity; and (5) a reservation may be terminated unilaterally by the District if acquisition has not occurred within twelve (12) months of the date of the District's written notice of its intent to terminate.

This policy reflects the District's need to ensure that local public entities have both priority and flexibility in the acquisition of EDUs, while ensuring that the reservations do not upset the District's cash flow projections based on revenue expected from EDU acquisitions and connected service charges.

C. Procedures for Assignment and Allocation of EDUs in Zone 1 (Lake Wildwood). [Reserved]

D. Procedures for Assignment and Allocation of EDUs in Zone 2 (Lake of the Pines). [Reserved]

(SD-51. (09/27/2005); SD-75. 11/07/2023)

A. Intent. It is the intent of this Section to provide a procedure for property owners to acquire surplus sewer capacity in the Penn Valley Zone 6 public sewer system as operated by Nevada County Sanitation District No. 1. This Section is not intended to and shall not be construed so as to create any obligation or duty upon the District to approve any request for acquisition of sewer capacity rights.

B. Policy. It is the policy of the District to provide the unallocated sewer capacity (EDUs) to qualified property owners on a first come, first served basis. As used herein, first come, first served shall be determined by the date that the District receives a completed application and fee. The District shall date stamp all applications submitted to the District. The District reserves the right to disqualify any application that it determines is not properly completed.

C. Procedures.

1. All assignments of sewer capacity shall be subject to the District's approval and shall be completed in accordance with its procedures.

2. The District shall accept applications for all unallocated sewer capacity so long as there is excess capacity in the Penn Valley Sewer System. All applications shall be accompanied by payment of a non-refundable filing fee of fifty dollars ($50.00), which must accompany the application, plus a deposit of one hundred fifty dollars ($150.00) (which shall not accrue interest) for costs incurred by the District on behalf of the applicant. In the event sewer capacity cannot be granted and agency fees charged to the District on behalf of the applicant exceed the deposit, applicant shall submit within twenty (20) calendar days from District notification those charges exceeding the deposit. Any deposit remainder shall be returned to the applicant. No application shall be accepted, and sewer capacity shall not be extended to any property, unless and until the property is zoned in a manner that is consistent with the application for the sewer capacity.

3. Applications shall require certification that the applicant(s) are the legal owner(s) of the property.

4. Upon the District's receipt of an application and payment of the appropriate fee, if the requested sewer capacity is available, the District shall inform the applicant in writing of the cost to acquire sewer capacity. The District will reserve the requested capacity for the applicant for a period of twenty (20) days in which period applicant must make payment to the District of the full cost for the acquisition of the sewer capacity. If payment is not made to the District within twenty (20) calendar days from the date of the District's notification to the applicant, the sewer capacity shall no longer be reserved for the applicant.

The cost of the sewer capacity shall include the original assessed capital cost per EDU of off-lot facilities (two thousand six hundred fifty-five dollars and fifty-one cents ($2,655.51)) plus an amount equal to the interest paid on the Penn Valley Sewer Project Bonds.

5. Sewer capacity funds will be deposited into the Penn Valley Zone 6 capital fund to be used for Zone 6 improvements.

6. The cost to acquire sewer capacity does not cover the cost of the construction of the on-lot facility required for connecting to the District's sewer mains or the cost of extending any sewer mains or other sewer lines to the applicant's property, and the applicant shall be responsible for all such costs.

Prior to physically connecting to the sewer system, the property owner must acquire a Sewer Connection Permit from the District and shall pay a fee of two hundred fifty dollars ($250.00), or such other amount as the Board of Directors may from time to time establish by resolution, for all costs associated with the on-lot facility construction and connection to the sewer system. As a condition to the connection to the Penn Valley Sewer System, the District shall be granted an easement for ingress and egress for the construction, maintenance, repair and replacement of all on-lot facilities located on the connecting property.

If the District finds that it is reasonably necessary to acquire any easement(s) on property other than the property that is connecting to the sewer system, the full cost of acquisition (including, but not limited to, the cost of staff and attorneys) shall be borne by the applicant. Any such cost shall be paid prior to connection to the sewer system.

7. If the owner of any parcel that is located outside of the boundaries of the Sanitation District requests sewer service, the property shall be required to annex to the Sanitation District prior to the granting of any sewer capacity to the property. The applicant is responsible for the processing and payment of all fees charged by LAFCo. District charges for annexation are separate from and in addition to LAFCo charges. If annexation is required, the applicant shall pay an annexation fee of fifty dollars ($50.00), which must accompany the application, plus a deposit of four hundred fifty dollars ($450.00) (which shall not accrue interest) for costs incurred by the District to determine if annexation is feasible. The applicant shall be required to pay for all staff time spent by the District.

8. Approval of acquisition of unallocated sewer capacity shall be evidenced by the adoption of a resolution which shall identify the recipient property and the amount of sewer capacity (number of EDUs) acquired. A letter confirming the allocation of sewer capacity will be sent to the property owner.

(SD-36. (07/08/1997); SD-75. 11/07/2023)