Commercial Tap Fees. The Hempfield Township Municipal Authority. $1,800 per EDU as set forth in the Authority s Resolution No
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1 $1,800 per EDU as set forth in the Authority s Resolution No For commercial establishments, tap fees are calculated based on the volume of water used at the facility. Each increment of 217 gallons of water used per day = 1 EDU = 1 tap fee charged. This applies to single tenant establishments and to each unit of a multi-tenant building (see more regarding multi-tenant buildings below).
2 In other words, the daily water consumption at a business is divided by 217 and the resulting value is multiplied by $1,800 to determine the tap fee. If the daily water usage is less than or equal to 217 gallons per day, the facility uses 1 EDU worth of water and is charged a tap fee equal to 1 EDU or $1,800. If a facility uses greater than 217 gallons of water per day, the tap fee is calculated as shown in Example #1 on the following page
3 Example #1: Commercial Tap Fee Calculation Facility water usage = 1,200 gallons per day 1, = 5.5 EDU s = 6 EDU s (since there are no partial EDU s) 6 EDU s x $1,800 = $10,800 = the tap fee for the facility.
4 In many cases, during the planning process a new establishment will need to estimate what the water consumption will be, and the initial tap fee is based on that estimate. The Authority will review water use records over time and charge additional tap fees if necessary. However, please be advised that the initial estimate should be as accurate as possible, because once taps are designated the Authority cannot re-allocate, re-sell, or transfer the taps; therefore, the owner is not reimbursed even if all the taps are not currently needed. Note: For more information on Sewage Facilities Planning Modules, please call the Authority at or go to the Pennsylvania Department of Environmental Protection web site.
5 Multi-Tenant Buildings 1) Each unit of a multi-tenant building is automatically considered 1 EDU and is charged 1 tap fee. Therefore, a 4-unit building = 4 EDU s = 4 x $1,800. It is important to remember that if renovations are performed which add units to a building, each additional unit is considered an additional EDU, and additional tap fees must be paid. 1) The water consumption of each unit is used to determine the number of EDU s and thereby the tap fee for each unit respectively, as shown in Example #1 above. 1) The owner of the building is responsible for paying the tap fees for the building. Therefore, the total number of EDU s, hence the total number of tap fees purchased for a building, are ultimately designated to the whole building, and can be divided up between the units as necessary as tenants come and go. The following Case Study is meant to better illustrate the issue
6 A developer proposes and constructs a two-unit building, hoping to attract tenants. Tap fee charged: 2-Unit Building = 2 EDU s = 2 x $1,800 The building has 2 taps associated with it. Unit 1 Unit 2 Total Taps for Building = 2
7 Two tenants want to rent one space each: One tenant is a retail store with less than 217 gallons per day (gpd) of water usage. The other tenant is a small pizza shop with an estimated water consumption of 900 gpd.
8 Since a tap fee was previously paid for each unit, the retail store with low water usage already has a tap and no additional tap fee is charged. The unit with the pizza place has 1 tap associated with it, but because of the higher water usage, additional tap fees must be paid and are determined as shown below: Additional flow = 900 gpd 217 gpd (existing tap) = 683 gpd 683 gpd 217 gpd = 3.15 or 4 EDU s Additional Tap Fee = 4 EDU s x $1,800 = $7,200 The building now has 6 total taps designated to it. Unit 1 Retail Unit 2 Pizza Shop (1 + 4 = 5 Taps) Total Taps for Building = 6
9 The pizza shop is doing great and loves the location but the retail store goes out of business. The owner of the multi-tenant building finds two other tenants who want to move into the building. They are each small retail outlets and don t need much space, so the owner puts up a wall, creating two units out of the one that held the original store. Tap Fee Charged: 1 Additional Unit = 1 Additional EDU = 1 Additional $1,800 tap fee. The building now has 7 total taps designated to it. Unit 1 Retail Unit 3 Retail Unit 2 Pizza Shop (1 + 4 = 5 Taps) Total Taps for Building = 7
10 Since the pizza shop is doing so well, water consumption increases from 900 gpd to 1800 gpd. The tap fee is re-evaluated total gpd 900 gpd estimated originally = 900 additional gpd = 4.15 or 5 EDU s Additional tap fee = 5 x $1,800 = $9,000 The building now has a total of 12 taps designated to it. Unit 1 Retail Unit 3 Retail Unit 2 Pizza Shop ( = 10 Taps) Total Taps for Building = 12
11 A few years go by. The pizza shop has run its course and goes out of business. The owner of the multi-tenant building has two other tenants lined up and he erects another wall; what was originally a 2-unit building which became a 3-unit building now is turned into a 4-unit building. Unit 1 Retail Unit 3 Retail Unit 2 Unit 4 Total Taps for Building Still = 12
12 Three of the tenants are small retail shops with very little water usage, and the fourth is a donut shop that uses 300 gpd. Since the building has 12 taps designated to it, neither the addition of the fourth unit nor the water usage of the donut shop (2 taps) increases water consumption to the extent that additional tap fees are charged. Essentially, the owner has a building that has 12 taps associated with it, but only 5 taps are being used. Unit 1 Retail Unit 3 Retail Unit 2 Retail Unit 4 Donuts (2 Tap) Total Taps for Building Still = 12
13 Unfortunately, due to the planning process, once taps are designated the Authority cannot re-allocate, re-sell, or transfer the taps; therefore, the owner is not reimbursed even if all the taps are not currently needed. However, on the bright side, the building owner can bring in tenants with higher water consumption without having to purchase more taps, as long as the total water usage does not exceed 12 taps worth. Unit 1 Retail Unit 3 Retail Unit 2 Retail Unit 4 Donuts (2 Tap) Total Taps for Building Still = 12
14 For more information on commercial tap fees, please contact the Authority at The End
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