Our Operating Rules

Revised February 2020

The Board may adopt or revise these Operating Rules at regular Board meetings consistent with procedures set forth in the Bylaws.

1. Membership Agreements

1.1. Each Water User who has water delivered to a tax parcel by the Association is required to enter into a Membership Agreement which will govern the interactions between the Association and the Member.
1.2. Each Water User granted membership shall pay to the Association all fees established and adopted by the Board prior to receiving water or services except as defined in an agreed payment plan.
1.3. Each member shall maintain their contact information with the Association. All Notices sent to the Member’s physical or email address on file with the Association shall be deemed delivered to such Member.
1.4. During the application process, each applicant shall receive a copy of the current Bylaws, Operating Rules, and all referenced documents.Documents may be provided either in printed form, via digital file transfer, or through a link to the Association’s website.

2. Member Connections

2.1. Applicable to all connections
2.1.1. Prior to the Association providing service, the Member will fully complete a Prospective Member Data Packet (PMDP).The Water User desiring to make a connection shall, at their expense, supply detailed water line plans and specifications showing the water distribution plans for the applicant’s property for approval by the Association’s engineer or other such person designated by the Board and approved by the DOH.
2.1.2. The PMDP includes contact information, billing preferences, auto pay options, tenant billing options, and specific site information including lot lines, elevation, roads and driveways, structure locations, septic phone and power locations, and peak demand estimations.
2.1.3. The location of the meter box shall be determined by the Association.
2.1.4. The Association will permit one service line and one billing meter per tax parcel unless otherwise authorized by the Board.
2.2. Single Parcel Connections
2.2.1. The applicant will provide the Association with a drawing and or pictures of the customer side of the lines servicing the property.
2.3. Developments and/or Subdivisions
2.3.1. On all plats or other subdivisions where the developer owns all parcels within the proposed development: The developer shall, at the developer’s expense, supply detailed water line plans and specifications of such development and plat as prepared by a WA licensed engineer for approval by the Association’s engineer or other such person designated by the Board and approved by the DOH. Prior to the installation of the water system improvements, the Association shall be provided with permanent legal access over all property in which Association lines shall be located, to and including the meter and shut-off valve.This legal access may be either: By location within a dedicated public or private road or easement showing the Association is entitled to use such road or easement for all Association purposes required by such development; or By grant of recorded easement from the fee title owner of such property prior to installation and shall furnish title insurance or other title evidence confirming the valid easement showing such title. Waterline installations shall be made according to the specifications of the Association and shall be paid for by the developer. The developer shall formally dedicate specified water system improvements to the Association and pay all associated charges due the Association before water service will be provided. The developer shall be responsible for the cost of repairing defects in the dedicated improvements for a period of one year after installation. The Association shall operate the dedicated improvements during this period. Upon the completion of the installation of the water system improvements including testing and approval by the Association, the Association shall become the owner of dedicated improvements on the Association side of the shut off valve associated with the tax parcel. The Association shall have the right to extend any line beyond the development area and there shall be no refund payable to the developer for any such extensions or any hook-ups . The Association will determine the number of Impact Units required for any proposed development per Service Class policy. The Association shall provide the applicant a written estimate as to the time period in which service can be provided.
2.3.2. This paragraph shall apply to extensions of the Association’s water lines in situations where the developer does not own all of the property benefiting from the extension. In such cases, the following rules shall prevail: The Association may enter into different arrangements with different developers, recognizing that differences exist between properties, and no precedent shall be established by any such agreement or arrangement. The developer may choose to work out cost-sharing arrangements with all benefiting parties as long as such arrangements are not inconsistent with the rules of the Association. The developer’s permission will be needed before other parties can use the extension for one year following the date that the Association first provides service to the development. Any party extending a main shall extend the main to the furthest boundary of the property or properties benefited.

3. Membership Agreement Costs

3.1. The Member is responsible for all charges and obligations associated with each Membership Agreement regardless of the owner’s absence, rental of the property or actions of the Member, contractors or others.
3.2. The Member shall pay all costs of installation from the existing distribution main to the downstream side of the meter setter, including the cost of the meter and meter setter. All lines, valves, and meters on the Association’s side of the shut off valve are the property of the Association.All lines, valves, and sub-meters on the Member’s side of the meter setter or master meter are the property of the Member and the responsibility of the Member to maintain, service, and repair.
3.3. The Member shall pay the requisite Impact Unit fees associated with each Membership Agreement.

4. Member Obligations

4.1. Water provided may only be used on the tax parcel which has an associated Membership Agreement.
4.2. Property owners are responsible for the installation of booster pumps, storage tanks, controls, pressure reducing valves, filters, etc. if their service requirements are in excess of what the Association can deliver.
4.3. The Member’s obligation is to complete the Association’s Cross Connections Control Survey prior to hook-up.
4.4. All water user’s plumbing and appurtenances related thereto shall conform to the provisions of the Uniform Plumbing Code with specific attention to the prevention of any type of cross connection which would impair the integrity of the distribution system and present a potential risk to public health.

5. Multiple Meters on a Single Tax Parcel

5.1. The Board may authorize multiple meters per parcel on the following conditions:
5.1.1. That there is a master meter for the tax parcel. Any additional meters associated with the property will be a sub-meter to this master meter.
5.1.2. That SUB METERS associated with the Multi Unit DIRECT BILLING PROGRAM are paid for by the member;
5.1.3. That the SUB METERS associated with the MULTI UNIT DIRECT BILLING PROGRAM are installed by Eastsound Water Staff in accordance with Eastsound Water’s Construction Standards;
5.1.4. SUB-METERS associated with the MULTI UNIT DIRECT BILLING PROGRAM will be read and billed by the Association;
5.1.5. The Member grants the Association 24/7 access to all SUB METERS on their property;
5.1.6. The Member pays the Association a Billing Fee for each meter.
5.1.7. The Member guarantees the payment of each sub-metered unit to the master meter associated with the multifamily units.
5.1.8. The Member is financially responsible for the maintenance and repair of all sub-meters and will prohibit anyone other than the Association to service the SUB-METER.
5.1.9. If access to the sub-meter is ever lost to the Association, the Association will bill all water usage based on the master meter associated with the parcel.
5.1.10. The Association reserves the right to bill the Member for any discrepancy between the master meter reading and the total of the use through all the SUB-METERS.

6. Rates and Fees

6.1. Usage based rates
6.1.1. There are five elements to the usage-based rates. These are the Minimum Rate, the Base Rate, the Consumption Rate, the Reasonable Water Use Threshold Rate, and Billing Fee (where applicable).
6.1.2. The Minimum Rate is $41 per month per Membership Agreement and applies to both active and inactive Membership Agreements.
6.1.3. The Base Rate is $15.00 per 1,000 gallons of average monthly use in the prior year.The base rate for each account will be determined each January. The account will be charged either the minimum rate or the base rate, whichever is higher.
6.1.4. The Consumption Rate is based on the volume used in the current period. The Consumption Rate is charged at $0.007 per gallon which is equivalent to $7 per 1,000 gallons.
6.1.5. A new Membership Agreement, incident to the sale of the property to an unrelated party, will be charged $22.00 per 1,000 gallons for a period of time ending on December 31 of the calendar year after the service begins but not less than the minimum rate. Once a Membership Agreement has a full calendar of usage history then the Member will be charged consistent will all other Members.
6.1.6. At the end of each calendar year, the total water volume used by the Member for the year is compared to the number of Impact Units the Member has. If the total volume exceeds the Reasonable Water Use Threshold associated with the account, then the Member is charged $22.00 per 1,000 gallons of water use which exceeds the Reasonable Threshold Water Use.
6.1.7. The Billing Fee is only charged to Members who are voluntarily participating in the Multi Unit Direct (MUD) Billing Program.Members can contract with EWUA to read and bill their privately owned sub-meters. The fee for direct billing of sub-meters is $8 per sub-meter per billing period.
6.1.8. Inactive Accounts are charged $41 per month.

6.2. Connection Fees
6.2.1. Impact Unit Fees – $14,500 per Impact Unit. The costs associated with fractional Impact Units are proportional. The Reasonable Water Use Threshold currently associated with one Impact Unit is 100,000 gallons. The Impact Unit fees may be paid over time. The payment plan percentages below include a finance fee which is fully detailed in the Installment Payment Plan. Two year / Three payment plan – Option A – Due at signing 50%, due in each year after signing – 27% of the Impact Unit fee. Four year / Five payment plan – Option B – Due at signing 25%, due in each year after signing – 21% of the Impact Unit fee. Six year / Seven payment plan – Option C – Due at signing 25%, due in each year after signing – 15% of the Impact Unit fee.
6.2.2. The payment plan for multiple year Impact Unit payments shall include the right of the Association to place a lien on the property and assess late payment fees.
6.2.3. Hookups are defined in the Bylaws One Hookup Fee – 1-inch connection – $1,500. One Hookup Fee – ¾ inch connection – $1,200. One Hookup Fee – Larger than 1 inch is a custom rate determined by the EWUA staff.

6.3. Administrative Rates and Fees $5 Paper billing charge – per bill – effective Jan 2022 $200 Property sale transfer fee $50 Tenant change fee $17 Delinquent service accounts per month $30 NSF charge $30 Certified mailing of shut-off notices charge
6.4. The Association will provide the Member a receipt for all funds received. Normal water usage billing will acknowledge receipts of payments and is considered a receipt for this purpose.
6.5. Delinquent fees ( may be waived at the discretion of the General Manager.
6.6. Connection fees shall be paid in full prior to hook-up, unless the Association approves an extended payment schedule.
6.7. Billing –The Board will establish a regular billing cycle. The Board will communicate with the members prior to implementing any changes to the billing cycle.
6.8. The payment due date shall be determined by the Board.
6.9. An account can be listed as inactive prior to a water meter being installed.After a water meter is installed the service is considered ACTIVE.Active services cannot be returned to inactive on a seasonal basis.

7. Impact Units

7.1. Eastsound Water will require each connection to the Association water system to have an associated number of Impact Units in regard to the nature of their water usage.The quantity and costs of the Impact Units are determined by the Board and used to determine rates and fees for each membership. All existing Membership Agreements at the time of the revision of these bylaws in 2020 will have a number of Impact Units assigned to them equal to the ERUs that have previously been associated with the parcel.
7.2. Impact Units replace Member ERUs. Impact Units are a function in the rate structure of the Association. Every Member can use as much water as the Association is able to deliver and the Member is able to pay for.
7.3. The transferability of Impact Units is discussed in section 9 below.

8. Determination of the Quantity of Impact Units Required

8.1. Impact Units take into account the Association’s cost of providing services, the impact of the connection’s use of water upon the system, peak flow requirements imposed on the system, and meeting the goals and requirements of the Water System Plan and the Department of Health.
8.2. At the time of a new connection or a substantial change in usage associated with a tax parcel, staff with approval of the Board, will make a determination regarding the service class of the property and the quantity of Impact Units required by the Association to provide water to that property. This determination is made on a parcel by parcel basis and is guided by the following:
8.2.1. Service Class I: Single Family Residential (1.0 Impact Unit per tax parcel) This class generally includes single family houses with no more than two living units in total on the parcel. A Membership Agreement with a minimum of 1.0 Impact Unit will be required of each tax parcel qualifying under this class. The Department of Health requires the Association to determine the number of living units connecting to the water system. Each living unit has an impact on all Members and influences the quantity of water available to all Members. San Juan County identifies living units for tax purposes and the Association’s definition of a living unit conforms to the definitions used by DOH and San Juan County. See County Code at [https://www.codepublishing.com/WA/SanJuanCounty/#!/SanJuanCounty18/SanJuanCounty1840.html#18.40.240]. Each parcel with a guest house as defined in the Bylaws in excess of the initial unit is required to pay fees of an additional 0.5 Impact Unit.
8.2.2. Service Class II: Multi-Unit Residential (1.0 Impact Unit per unit) This class generally includes apartments, trailer parks, triplexes, residential condominiums, and such arrangements providing multiple living units on a single tax parcel. It is intended that this class include those uses where there is an umbrella type of ownership and joint management of the complex. Each living unit of the multi-unit facility will require an Impact Unit fee. The tax parcel(s) will be served by a single service line and a single master meter. Sub-metering of each unit is encouraged. Multi-unit developments are required to install cross connection control protection immediately downstream of the master meter.
8.2.3. Service Class III: Non-Residential: (1.75 Impact Unit per tax parcel) This class generally includes non-residential and mixed-use water users. Each Service Class III is allowed both commercial use and up to two residential living units. Each tax parcel served as a Class III service will require not less than 1.75 Impact Units.
8.2.4. Service Class IV: Case Specific This service class is applicable whenever the anticipated water use is expected to exceed or be substantially below the Reasonable Water Use Threshold under other service classes. The Board reserves the right to consider any applicant or Members under Service Class IV on a case-specific basis. Uses to be considered under this class would be water users with especially high or low, otherwise unpredictable, unusual, or unique patterns of water usage not easily considered under other Service Classes. Although the general principles of evaluation and billing used in the other classes will be applied, it is recognized that those principles are crafted for more predictable customers. In general, the criteria that the Board will consider will include the cost of providing service, the impact of the customer on instantaneous, daily, and seasonal flows, and the potential obligation imposed on the Association to provide future expansion.

9. Sales and Transfer of an Impact Unit

9.1. Upon the sale of a tax parcel to an unrelated party
9.1.1. The Membership Agreement with the selling party expires.
9.1.2. All fees and charges associated with the Seller’s service are due upon sale.
9.1.3. The seller provides the Association with notice on Association forms of the release of the full or fractional Impact Units associated with the tax parcel and to the benefit of the Buyer.
9.1.4. All residual Impact Units associated with the tax parcel and not transferred to the Buyer are returned to the Association so that no residual Impact Units remain.
9.1.5. A new Membership Agreement is established with the Buyer and the transfer of full or fractional Impact Units are contingent on the following: The transfer will not result in a change in the tax parcel the Impact Unit is associated with. All fees and charges associated with the Seller’s service have been paid including service fees, late fees, membership installments, sub-area fees, etc. Receipt by the Association of the Seller’s release of the full or fractional Impact Units associated with the tax parcel. Receipt of all new Membership Agreement fees from the Buyer. The Impact Units associated with the tax parcel are sufficient to meet the use of the property. An easement granting access to the Association equipment is provided to the Association. Approval by the Board of the Association or the Board designee. The Association will provide the new owner a grace period of no less than 30 days to complete a new Membership Agreement. Failing to complete this new agreement in this timeline may jeopardize the membership and is subject to: A $17 late fee per month. Possible forfeit of the membership if later than 90 days.

9.2. Upon a Change of Title Involving Related Parties or Legal Entities
9.2.1. Changes in title to property involving family trusts, corporations, limited liability companies, and similar entities that result in a Change of Controlling Interest in the property require a new membership agreement and property transfer fee of $75.
9.2.2. A “Change of Controlling Interest” occurs when the legal ownership or beneficial ownership of a parcel served by the Association changes by fifty percent or more. For corporations, partnerships, trusts and other associations, this means: (a) In the case of a corporation, either fifty percent or more of the total combined voting power of all classes of stock of the corporation entitled to vote, or fifty percent of the capital, profits, or beneficial interest in the voting stock of the corporation; and (b) In the case of a partnership, association, trust, or other entity, fifty percent or more of the capital, profits, or beneficial interest in the partnership, association, trust, or other entity.
9.2.3. Following any change of controlling interest, the Membership Agreement for such property terminates and a new Membership Agreement with the Association is required.
9.2.4. Issuance of a new Membership Agreement following a Change in Controlling Interest is contingent upon paying all fees and charges associated with the prior Membership Agreement.
9.2.5. New Membership Agreements are subject to all stipulations listed in section

9.3. Upon a Subdivision of a Tax Parcel with Existing Impact Unit(s)
9.3.1. The owner may divide the Impact Unit between the subdivided parcels as desired on the following conditions: A minimum of one (1.0) Impact Units are associated with any one parcel. There are sufficient Impact Units associated with each subdivided parcel to meet the requirements of San Juan County for each subdivided parcel. There are sufficient Impact Units associated with each subdivided parcel to meet the requirements of the Association. A Membership Agreement is created for each subdivided tax parcel. All Association fees associated with the process are paid for up front or on an Association payment plan. The Board approves the transfer to the subdivided parcel(s).

9.4. Upon the Merger of Two Tax Parcels
9.4.1. The merger of two or more tax parcels will create a new property title. The new tax parcel will necessitate a new Membership Agreement.
9.4.2. An evaluation is made by the Association as to the adequacy of the Impact Units associated with the new tax parcel to provide for the intended needs of the property.The property owner pays for any additional Impact Units that are required to meet the intended use.
9.4.3. All Association fees associated with the process are paid up front or on an Association payment plan.
9.4.4. The Board approves the transfer to the merged parcel.

9.5. From a Member to the Association.
9.5.1. Members may transfer full or fractional Impact Units to the Association.
9.5.2. The Association will determine the offering price of the Impact Unit(s) and make an offer. If the offer is acceptable to the Member, the Impact Unit is transferred from the parcel to the Association.
9.5.3. Factors the Association will consider in setting a price for the Impact Units to be received from Members, including but not limited to. The price paid to the Association for the Impact Unit. The costs incurred by the Association in providing service to the tax parcel. Whether sufficient Impact Units remain with the tax parcel to meet the intended uses of the property. Fairness and equitable treatment of other Members. The Board will consider: Up to 90% of the price paid by the Member. Minus the costs incurred by the Association due to the provision of the Impact Units. If no Impact Units or water service remain with a tax parcel, the Membership Agreement expires.

9.6. From the Association to a Member
9.6.1. The Association may transfer full or fractional Impact Units to a Member if: If the Member is in good standing Enters into an Association payment plan for the Impact Units The Member agrees to pay the costs associated with bringing water service to the Member’s tax parcel. New Membership Agreement to reflect the new quantity of Impact Units. The Association has adequate Impact Units to provide without endangering service to existing Members.

9.7. From One Tax Parcel to Another Tax Parcel Under Common Ownership
9.7.1. Transfers from one tax parcel to another under common ownership are permitted under the following set of conditions: The Member owning the Impact Unitis the same owner, or controlling interest, on both parcels. The tax parcel the transfer is moved from has sufficient remaining Impact Units to meet the minimum requirements for that tax parcel. The tax parcel the transfer is being moved to will receive water service from the Association only if the receiving tax parcel has a minimum of one Impact Unit. Upon transfer, the Membership Agreement from transferring tax parcel will expire and a new Membership Agreement will be created. The Membership Agreement on the receiving tax parcel, if any such Agreement exists, will expire and a new Membership Agreement will be created. The Board approves of the transfer between the two parcels.

9.8. Conditional Transfer Related to New Development
9.8.1. The Association may provide a Member seeking a Certificate of Water Availability for development and County permit purposes to enter into a Membership Agreement with the acquisition of fractional or full Impact Units. The Association will provide a conditional Certificate of Water Availability subject to the Water User entering into a Membership Agreement and making payment under any one of the Association payment plans.
9.8.2. The Association will refund the full or any fractional amount of the Impact Unit fees paid if the Member: Cancels or amends the development project with the County within three years.The developer may request an extension of time which may be granted upon approval of the Board. Compensates the Association for any costs incurred by the Association in relationship to the provisioning of this Certificate of Water Availability. Any service fees incurred during the interim are not refundable.
9.8.3. The refund provision expires upon the issuance of a County building or subdivision permit.

10. Administrative Matters

10.1. Policy on who can turn on or off the water at the EWUA meter box
10.1.1. Members must have the permission of Eastsound Water to turn on any Eastsound Water valve. The Member must inform Eastsound Water any time the Member moves the valve.
10.2. Any water bill remaining unpaid when due shall be subject to a late charge and service being discontinued.
10.3. The Association may refuse to connect or may discontinue service to any member for any of the following reasons:
10.3.1. Violations of Association Operating Rules or Bylaws, or State or County regulations.
10.3.2. Failure to comply with or to install materials and appurtenances as required by Eastsound Water.
10.3.3. The use of water in a hazardous manner.
10.3.4. Failure to pay charges for water service when due.
10.3.5. Failure to pay when due any charge set forth on the Association’s rate schedule or contract.
10.3.6. Theft of water or any other service.
10.3.7. Illegal diversion of water.
10.3.8. Failure to pay for damage to the Association’s property caused by the member or its contractors, agents, employees, or invitees.
10.3.9. Use of water other than as represented in the Membership Agreement.
10.3.10. Illegal connections upstream of the meter or the place reserved for the meter.
10.3.11. Tampering with any service pipe between the main and the meter, seal, meter, valve, or other appurtenance owned by the Association.
10.3.12. Cross-connecting pipes carrying water supplied by the Association with any other source of supply or apparatus which may endanger the quality of the Association’s water supply or which may affect the quality of the Association’s water supply.
10.3.13. The use of water without a meter.
10.3.14. Refusal of reasonable access to the property for purposes of reading, repairing, testing, or removing meters, or inspecting water piping or other fixtures, or ensuring an appropriate use of water.
10.3.15. Failure to follow the conditions of an approved application or any appropriate state sanitary code.
10.3.16. By written order of an authorized fire marshal, fire chief, building inspector, peace officer, or officer of a court with jurisdiction in the Association service area that water service to a premise be discontinued as a result of violation of an applicable rule, statute, or law.
10.3.17. Failure to comply with Association directions to reduce water consumption because of drought, emergency, conservation programs, or other similar circumstances.
10.4. The discontinuance of Service for any listed cause(s) does not release the Member from the obligation to pay for water received or for charges specified in any contract or rate schedule.
10.5. When discontinuing service, the Association shall:
10.5.1. Notify the member in writing of the reason for discontinuance and of any amount due.
10.5.2. Service interruption notices issued under this section will be made by either, hand delivery, mailed by postage-prepaid, or certified (return receipt requested) mail. These methods of notification are not required in the event of emergency conditions or threat (real or potential) to the integrity of the water system.
10.5.3. Wait ten days after notice has been placed in the mail, presented to the customer, or ten days after the first attempt to hand deliver notice to the customer before water service may be shut off.
10.6. Prior to restoration or reconnection of service, the Member must pay all fees and charges due in accordance with current rate schedule and in full compliance with all Association requirements. Additional charges will apply if restoration occurs during other than regular business hours or if discontinuance of the service has required removal of the Association equipment from the customer’s premise or if closing the meter stop or turning off the water elsewhere involves any unusual expense. Additional charges will apply for any damage to the Association equipment during discontinuance or restoration of service.
10.7. Any unauthorized restoration of service will result in charges for consumption estimated at the Association’s sole discretion and/or reports to appropriate law enforcement authorities. The Association may also excavate and either turn off or remove the corporation stop (Corp Stop) at member’s expense.
10.8. Any member whose water has been turned off and who wants to restore service must agree to comply with Association requirements.

11. Limitation of Water

11.1. In the event the Association water supply becomes insufficient to meet all needs of all members, the Association may:
11.1.1. Pro-rate the water available among members on such basis as is deemed equitable by the Board of Directors including a schedule of hours limiting or prohibiting the use of water for residential, commercial, agricultural or industrial purposes.
11.1.2. Alter the rates charged for the consumption of water to provide a financial incentive to limit water usage.

12. Sale of Water to Non-Members

12.1. Association water shall only be used on the property which has a Membership Agreement unless authorized in writing by the board.
12.2. Bulk water may be sold by the Association to non-members or commercial water carriers at the option of the Board, at a rate specified by the Board on a case-by-case basis.