Operating Rules - Chapter 5 - Service Outside Denver


5.01     Contractual Relationships.  Inside Denver, Denver Water provides water supply pursuant to the Charter of the City and County of Denver.  Outside Denver, Denver Water provides water supply pursuant to contract.  Each contract is subject to the Charter, Denver Water’s Operating Rules and Engineering Standards and amendments thereto.  The Charter, Rules and Standards and any amendments are part of every contract for water supply.

5.02     Distributor Contracts (Water Service Agreements).  Within the Combined Service Area, potable water supply is provided pursuant to contracts with Distributors.  Under Distributor contracts executed after 1993, Denver Water agrees to furnish all potable water necessary to serve the full development of the land within the Distributor’s service area.  Denver Water’s obligations under older Distributor contracts are governed by the specific provisions of those contracts.  A Distributor contract does not give the Distributor the exclusive privilege of supplying water service to a given service area.  Distributor contracts vary based on the level of service provided by Denver Water.

5.02.1  Total Service.  Under Total Service contracts, Denver Water has dominion or ownership of the Water System and is responsible for its operation, maintenance and replacement.  Denver Water reads each individual customer’s meter and bills each individual customer at the established “Total Service” rate.  In Total Service Areas, water service is provided to the customers in the same manner as that provided to customers inside Denver.

a.         Total Service Improvement.  A Distributor whose system does not currently meet Denver Water Engineering Standards may request to convert to Total Service status.  This can be accomplished through a Total Service Improvement contract, under which Denver Water takes dominion over the Distributor’s existing water system pursuant to a plan to upgrade it to Total Service standards.  Denver Water will decide whether the upgrades will be constructed before or after taking dominion of the system.  In either case, the costs of constructing the upgrades will be recovered by assessing a surcharge to each of the customers within the Distributor’s service area.

5.02.2  Read and Bill.  Under Read and Bill contracts, the Distributor owns and is responsible for construction, operation, maintenance, and replacement of its water system into which Denver Water delivers water.  Denver Water reads the meter of each individual customer and bills each individual customer at the established “Read and Bill” rate.

5.02.3  Master Meter.  A Master Meter Distributor owns and is responsible for construction, operation, maintenance, and replacement of its water system.  Denver Water delivers water to the Distributor through one or more master meters and bills the Distributor at the established “Wholesale (Master Meter)” rate.  The Distributor, not Denver Water, is responsible for reading the meters of its individual customers and for billing its individual customers according to rate schedules established by the Distributor.

a.         Master Meter Maintenance.  A Master Meter Distributor may elect to continue customer billing and collection functions within its service area, but contract with Denver Water to operate, maintain and replace its water system as needed.  This arrangement can be accomplished through a Master Meter Maintenance Contract, under which Denver Water bills the Distributor for providing this higher level of service at the established “Master Meter Maintenance” rate.

5.03     Integrated and Consecutive Systems.

5.03.1  Water Quality Regulation.  Under the Colorado Primary Drinking Water Regulations, every public drinking water system must engage individually in monitoring, reporting and certification unless it is part of an Integrated System, using a common set of standards for protecting drinking water quality.  Denver Water’s goal is to treat all Distributors and their customers as part of an Integrated System installed, operated and maintained in a common manner.  Denver Water’s Operating Rules and Engineering Standards establish the minimum operational requirements, but individual Distributors may adopt their own rules and regulations.

5.03.2  Integrated System.  Denver Water’s Integrated System consists of the City and County of Denver, all systems under Total Service or Total Service Improvement Distributor contracts, and those systems under Read and Bill, Master Meter, or Master Meter Maintenance Distributor contracts that meet all Denver Water operational and maintenance standards.  These systems are treated as part of the Denver Water system for testing and reporting under water quality regulations.

5.03.3  Consecutive Systems.

a.         Distributors.  Any water system operated under a Read and Bill or Master Meter Distributor contract that does not conform to integrated system requirements as defined by Denver Water shall be considered a Consecutive System.  Consecutive System Distributors are a different class of customer from Integrated System Distributors, and may have different rates, cross?connection control requirements and water quality testing and reporting requirements.  A Consecutive System Distributor is responsible for meeting all regulatory requirements for water quality testing and reporting under its own PWSID number.

b.         Private Systems.  A water system controlled by an individual entity, such as a government installation, large industrial operation, apartment complex or shopping center, is a Consecutive System.  The customer is responsible for all aspects of the water distribution system and for meeting all regulatory requirements for water quality within its property.

c.          Backflow Prevention Required.  Any Consecutive System must be completely isolated from the Integrated System by means of adequate backflow prevention.

5.03.4  Change in Status.  If an Integrated Distributor fails to maintain its water distribution system in compliance with Denver Water’s Engineering Standards and Operating Rules, Denver Water may, in its discretion, designate the Distributor’s water system as a Consecutive System.

a.         Opportunity to Correct Deficiencies.  Denver Water will provide written notice to the Distributor of deficiencies in its operation or maintenance practices that must be corrected to maintain Integrated System status.  Depending on the degree of hazard to the Integrated System posed by the Distributor’s water system, the Distributor will be provided from 24 hours to 30 days to isolate its distribution system or complete remedial action.

b.         Corrective Action by Denver Water.  If the deficiency poses an imminent threat to public health, Denver Water may take immediate corrective action.  Denver Water may charge the Distributor for any expenses incurred to isolate or protect the Integrated System.

5.04     Other Water Supply Contracts.

5.04.1  Connector Agreement. A single premises outside Denver may be connected to a Denver Water?owned main.  The Total Service rate applies to Connector Agreements.  However, Denver Water’s policy is to require premises served with potable water to be part of a Distributor’s service area, and Connector Agreements will be permitted only under rare circumstances.

5.04.2  Nonpotable Water Contracts.  Within the Combined Service Area, Denver Water may deliver nonpotable water to a customer for irrigation, augmentation, commercial use, or other nonpotable purposes.  Denver Water will deliver such nonpotable water to the purchaser through one or more master meters or gauging devices and will bill the purchaser at the applicable nonpotable rate.  Nonpotable service through licenses is governed by Chapter 4.

5.04.3  Carrier Facility Contracts.  Contracts for water from carrier facilities such as ditches are administered according to specific contractual rights for each carrier facility.

5.05     Contracts for Water Supply Outside the Combined Service Area.  Denver Water may enter into contracts to provide specified amounts of either potable or nonpotable water outside the Combined Service Area under fixed-amount contracts.

5.05.1  SDCs and Rates.  Delivery of water on a permanent basis under fixed-amount contracts will be conditioned on payment of potable or nonpotable water SDCs applicable to customers outside the Combined Service Area.  Denver Water may adopt Outside Combined Service Area rates to apply to water delivered under fixed-amount contracts.

5.05.2  Obligations under Fixed-Amount Contract.  Denver Water’s obligation under a fixed-amount contract is to deliver the agreed-upon amount of water, under the terms and conditions contained in the contract.  If the contractor is an entity that distributes water to customers, the contractor bears the sole responsibility for providing an adequate supply of water for its future development.

5.05.3  Limitations on Delivery.  Each fixed-amount contract shall contain provisions to limit water delivery as necessary to provide an adequate supply of water to the people of Denver.  The extent of such limitations is a fact to be determined by the Board in the exercise of its reasonable discretion.