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Home My WebLink About10. Public hearing re Fee Ordinances - Capacity Fees, Rates & Charges, and Environmental and Development-Related Fees and Charges Page 1 of 36 Item 10. CENTRAL SAN BOARD OF DIRECTORS ' POSITION PAPER MEETING DATE: JUNE 7, 2018 SUBJECT: CONDUCT PUBLIC HEARING TO RECEIVE PUBLIC COMMENT AND CONSIDER ADOPTING ORDINANCESAS FOLLOWS: • UNCODIFIED ORDINANCE NO. 301 -AMENDING THE SCHEDULE OF CAPACITY FEES, RATES, AND CHARGES, REPLACING ORDINANCE NO. 296 IN ACCORDANCE WITH DISTRICT CODE CHAPTER 6.12, EFFECTIVE JULY 1, 2018; AND • UNCODIFIED ORDINANCE NO. 302 -AMENDING THE SCHEDULE OF ENVIRONMENTAL AND DEVELOPMENT-RELATED FEES AND CHARGES, REPLACING ORDINANCE NO. 297 IN ACCORDANCE WITH DISTRICT CODE CHAPTER 6.30, EFFECTIVE JULY 1, 2018 DATA ISAVAILABLE, AS REQUIRED BYGOVERNMENT CODE TITLE 7, DIVISION 1, CHAPTER 8, SECTION 66016. IF YOU HAVE QUESTIONS, PLEASE CONTACT SENIOR ENGINEER THOMAS BRIGHTBILLAT(925) 229-7338. SUBMITTED BY: INITIATING DEPARTMENT: THOMAS BRIGHTBILL, SENIOR ENGINEER ENGINEERING AND TECHNICAL SERVICES- I RI NA KADANTSEVA, MANAGEMENT PDS-RATES AND FEES ANALYST REVIEWED BY: DANEA GEMMELL, PLANNING & DEVELOPMENT SERVICES DIVISION MANAGER JEAN-MARC PETIT, DIRECTOR OF ENGINEERING AND TECHNICAL SERICES Roger S. Bailey General Manager June 7, 2018 Regular Board Meeting Agenda Packet- Page 84 of 446 Page 2 of 36 ISSUE State Law and District Code requires that a public hearing be held to receive public comment on ordinances which revise Capacity Fees and the Environmental and Development-Related Fees and Charges. BACKGROUND Capacity Fees Central San charges a Capacity Fee when properties first connect to the public sewer or when there is an expansion or change of use for non-residential properties. Each year, this fee is updated based on changes to the value of Central San assets and the number of Central San customers. California Senate Bill 1769, enacted in September 1993, defines Capacity Charges for water and sewer agencies in Section 66013 of the California Government Code. The equity buy-in method used by Central San conforms to the requirements contained in Section 66013. A recommended ordinance to establish the following proposed Capacity Fees is attached: Fee Category Current Proposed % Change Gravity Zone Fee $6,300 $6,700 6.3% Pumped Zone Fee $7,939 $8,336 5.0% Environmental and Development-Related Fees and Charges Chapter 6.30 of the District Code includes provisions for the Board of Directors to adopt an uncodified schedule of fees and charges for environmental and development services provided to property owners, contractors, developers, septic and grease waste haulers, and permitted industrial users. These services include permit counter assistance; plan review; construction inspection for private side sewers and public main line extensions; addition of new sewers, parcels, and permit information to Central San maps; administration of source control permits and inspections; and septic and grease hauler permitting, sampling and treatment. Following a review of the fees and charges by Central San staff, it is recommended that they be revised to reflect changes in the costs to provide the services, including updated labor costs. Information regarding the proposed changes is included in the attached report. A comparison of current and staff-recommended fees and charges is presented in Exhibit A to the attached proposed ordinance. If the proposed revisions to the Environmental and Development-Related Fees and Charges are adopted by Central San's Board, 16 charges would remain unchanged, 72 charges would increase, and one fee would decrease. ALTERNATIVES/CONSIDERATIONS The Board may decline to adjust the schedule of Capacity Fees. In this event, the fees that went into effect on July 1, 2017 would continue. This is not recommended as capacity fees would not accurately reflect the value of each parcel's share of Central San assets. The Board may decline to adjust some or all of the Environmental and Development-Related Fees and Charges. I n this event, the fees that went into effect on July 1, 2017 would continue. This is not recommended as Central San would not fully-recover costs expended in providing the corresponding environmental and development-related services. June 7, 2018 Regular Board Meeting Agenda Packet- Page 85 of 446 Page 3 of 36 FINANCIAL IMPACTS If the recommended Capacity Fees are adopted, staff estimates that approximately$400,000 in additional capacity fee revenue would be generated by the fee increases in Fiscal Year (FY) 2018-19. This projection is based on the projected development of 1,000 residential unit equivalents (RUE). The proposed Environmental and Development-Related Fees and Charges are designed to recover Central San' s direct and indirect labor costs, other operating costs, and administrative overhead costs incurred in providing environmental and development-related services. If the recommended Environmental and Development-Related Fees and charges are adopted, staff estimates that between $18,000 and $68,000 in additional revenue will be generated in FY 2018-19. This projection is based on the range of increases shown in the attached staff report and assumes that the level of development would approximate that of the current fiscal year. COMMUNITY OUTREACH Staff conducted a coordinated outreach program to inform and solicit input from stakeholders and interested customers regarding the proposed Capacity Fees and the proposed Environmental and Development-related Fees and Charges. Notices of the public hearing were posted and published on May 24 and May 31, 2018, in the Contra Costa Times and San Ramon Valley Times. I n addition, approximately 420 letter reports, including the proposed schedule of rates and charges, were distributed to developers, engineers, architects, contractors, waste haulers and representatives of the Building Industry Association of the Bay Area and others who have requested notice of fee increase proposals. As of May 24, 2018, no stakeholders or members of the public had contacted Central San with comments. Any comments received after May 24, 2018 will be presented to the Board of Directors at the public hearing. COMMITTEE RECOMMENDATION The Finance Committee reviewed the proposals at its April 24, 2018 meeting and recommended approval. RECOMMENDED BOARD ACTION Hold the public hearing. -Once the public hearing has concluded: 1. Adopt the attached proposed uncodified ordinance revising the "Schedule of Capacity Fees, Rates, and Charges" effective July 1, 2018, which includes the following findings: a. Central San has made a substantial investment in assets that will benefit new users. b. The purpose of the capacity fee program is to equalize the investment in Central San's assets among current and new users, thus ensuring that new users pay their fair share for facilities and other assets. c. There is a strong and reasonable relationship between the actual added burden imposed by new users and the proposed Capacity Fee. d. The current Sewer Construction Fund balance and future Capacity Fee revenue will be allocated to: Life-cycle replacement, renovation, upgrading and improvements to maintain existing June 7, 2018 Regular Board Meeting Agenda Packet- Page 86 of 446 Page 4 of 36 capacity in Central San's facilities; • Addition to and expansion of facilities when needed or required to meet legal and regulatory requirements; • Equitable adjustment of contributions among current, new and contractual users; • New users' buy-in to all of Central San' s assets including facilities and the balances in the: • Sewer Construction Fund • Running Expense Fund • Debt Service Fund • Self Insurance Fund e. For Central San to continue an adequate level of service to all users, maintenance of existing facilities capacity and construction of additional facilities capacity in the future is required. f. The proposed fees, rates and charges are exempt from the California Environmental Quality Act (CEQA) per section 6.-12.020 of the District Code. 2. Adopt the proposed uncodified ordinance revising the Schedule of Environmental and Development- Related Fees and Charges effective July 1, 2018, including the following findings: a. Central San incurs substantial costs to provide environmental and development-related services. b. It is necessary to charge customers and other users to recover the reasonable cost of providing the services. c. The proposed fees and charges reasonably represent Central San' s actual costs to provide the services. d. The proposed fees and charges are exempt from the California Environmental Quality Act (CEQA). (Four affirmative votes are required for adoption) Strategic Plan re-In GOAL THREE: Be a Fiscally Sound and Effective Water Sector Utility Strategy 2- Manage Costs GOAL FIVE: Maintain a Reliable Infrastructure Strategy 3- Protect District Personnel and Assets from Threats and Emergencies ATTACHMENTS: 1. Proposed Ordinance, Including Exhibit A: Schedule of Capacity Fees, Rates and Charges (Uncodified) 2. Report Regarding Capacity Fee Update 3. Proposed Ordinance, Including Exhibit A: Schedule of Environemental and Development-Related Fees and Charges 4. Report Regarding the Environmental and Development-Related Fees and Chages Update 5. PowerPoint Presentation June 7, 2018 Regular Board Meeting Agenda Packet- Page 87 of 446 Page 5 of 36 ORDINANCE NO. AN ORDINANCE OF THE CENTRAL CONTRA COSTA SANITARY DISTRICT ADOPTING AN UNCODIFIED SCHEDULE OF CAPACITY FEES, RATES AND CHARGES IN ACCORDANCE WITH DISTRICT CODE CHAPTER 6.12 WHEREAS, the Board of Directors (Board) of the Central Contra Costa Sanitary District (Central San) finds that substantial study has been conducted regarding the impacts of planned future development within Central San's service area on existing Central San services and facilities, along with an analysis of new, improved, or expanded Central San facilities and services required or appropriate to serve new users and current users who change the use of their connected buildings and facilities, and said studies have set forth the relationship between the added burden imposed by such users, and the need for an estimated cost of Central San services and facilities occasioned by this added burden; and WHEREAS, these studies were undertaken by Central San staff and culminated in documents that are part of the public record, to wit: the Capital Improvement Budget and Ten-year Capital Improvement Plan contained in the document titled, "Central Contra Costa Sanitary District FY 2017-18 Budget," and the Staff Report on Proposed Capacity Fee Program dated March 27, 2018; and WHEREAS, these studies also included the Wastewater Capacity Fee Review Study dated May 28, 2018 by Black & Veatch which reviewed Central San's methodology and calculations; and WHEREAS, it is reasonable and necessary that all users of Central San's wastewater and household hazardous waste collection, treatment, recycling, reuse and disposal services and facilities, including those temporary users served under Special Discharge Permits, contribute their appropriate portion of the funding for such Central San services and facilities; and WHEREAS, a properly noticed public hearing regarding the proposed Capacity Fee Program revisions was held on June 7, 2018, and proper notice was also given of the availability of the documents noted above for public inspection and review prior to said public hearing; and WHEREAS, Chapter 6.12 of the District Code provides the enabling authority for Central San to implement the proposed uncodified Schedule of Capacity Fees, Rates and Charges; and WHEREAS, the Board finds as follows: 1. Central San has made a substantial investment in assets that will benefit new users. 2. For Central San to continue an adequate level of service to all users, maintenance of existing facilities capacity and construction of additional facilities capacity in the future is required. June 7, 2018 Regular Board Meeting Agenda Packet- Page 88 of 446 Page 6 of 36 Ordinance No. Page 2 of 3 Central Contra Costa Sanitary District 3. The purpose of the Capacity Fee Program is to equalize the investment in Central San's assets among current and new users, thus ensuring that new users pay their fair share for facilities capacity and services. 4. The current Sewer Construction Fund balance and future Capacity Fee revenue will be allocated to: • Life-cycle replacement, renovation, upgrading and improvements to maintain existing capacity in Central San's facilities; • Addition to and expansion of facilities where needed or required to meet legal and regulatory requirements; • Equitable adjustment of contributions among current, new and contractual users; • New users' buy-in-to-all-assets of Central San including facilities and the balances in the: - Sewer Construction Fund - Running Expense Fund - Debt Service Fund - Self Insurance Fund 5. There is a strong and reasonable relationship between the actual added burden imposed by new users and the proposed capacity fees, rates and charges. 6. The proposed fees, rates and charges are exempt from the California Environmental Quality Act (CEQA) per section 6.12.020 of the District Code. NOW, THEREFORE, the Board of Directors of the Central Contra Costa Sanitary District does ordain as follows: Section 1 (To be Uncodified) The "Schedule of Capacity Fees, Rates and Charges" as set forth in full in Exhibit "A" to this Ordinance, which exhibit is incorporated in full herein by this reference, is hereby adopted in uncodified form pursuant to the provisions of District Code Section 6.12.020. As of the effective date of this Ordinance, Capacity Fees shall be charged at such rates and for such categories of users as set forth in said Schedule, and shall remain in effect until amended or replaced by ordinance. Section 2 All ordinances and parts of ordinances in conflict with the provisions of this Ordinance are repealed. The provisions of this Ordinance, insofar as they are substantially the same as existing provisions relating to the same subject matter shall be construed as restatements and continuations thereof and not as new enactments. To the extent this Ordinance or any portion or section of this Ordinance is determined invalid or unconstitutional, such portions of Ordinance No. 296 shall remain in effect and such rates and charges due thereunder for any categories of users shall remain due and payable as if those portions of Ordinance No. 296 had not been repealed. With respect, however, to violations, rights accrued, liabilities accrued, or appeals taken, prior to the effective date of this Ordinance, under any chapter, ordinance, or part of an June 7, 2018 Regular Board Meeting Agenda Packet- Page 89 of 446 Page 7 of 36 Ordinance No. Page 3 of 3 Central Contra Costa Sanitary District ordinance, such chapter, ordinance or part of an ordinance shall be deemed to remain in full force for the purpose of sustaining any proper suit, action, or other proceedings, with respect to any such violation, right, liability or appeal. Section 3 This Ordinance shall be a general regulation of Central San and shall be published once in the Contra Costa Times and San Ramon Valley Times, newspapers of general circulation within Central San, and shall be effective on July 1, 2018. PASSED AND ADOPTED this 7th day of June 2018, by the Board of Directors of the Central Contra Costa Sanitary District by the following vote: AYES: Members: NOES: Members: ABSENT: Members: James A. Nejedly President of the Board of Directors Central Contra Costa Sanitary District County of Contra Costa, State of California COUNTERSIGNED: Katie Young Secretary of the District Central Contra Costa Sanitary District County of Contra Costa, State of California Approved as to form: Kenton L. Alm, Esq. Counsel for the District June 7, 2018 Regular Board Meeting Agenda Packet- Page 90 of 446 Page 8 of 36 EXHIBIT "A" SCHEDULE OF CAPACITY FEES, RATES, AND CHARGES (Uncodified) The Capacity Fees, Rates, and Charges listed below were established by Central Contra Costa Sanitary District Ordinance No. adopted June 1, 2018. These fees, rates, and charges shall be applied to all new connections or added burdens for which fees become due and payable on or after July 1, 2018 in accordance with the provisions of District Code Chapter 6.12. Gravity Capacity Fee $6,700 / RUE* Pumping Capacity Fee $1,636 / RUE *A residential unit equivalent (RUE) is a measure of sewage volume and strength equivalent to a typical residential household. Gravity Zone Fee Zone 1 = Gravity Capacity Fee Pumped Zone Fee (Zone 2) = Gravity Capacity Fee + Pumping Capacity Fee Residential Unit Equivalence (RUE) Factors0) Number of RUE = Unit of Measure Count Multiplied by the RUE Factor Gravity Pumping Eligible for Capacity Capacity Capacity Use Unit of Fee RUE Fee RUE Use Charge Code User Group Measure(2) Factor Factor Program LU Single-family residences Dwelling Unit 1.000 1.000 LA Multiple-family residences, apartments Dwelling Unit 0.847 0.847 LD Duplex Dwelling Unit 0.847 0.847 LM Mobile homes Dwelling Unit 0.847 0.847 LT Condominium Dwelling Unit 0.847 0.847 LS Accessory structure Dwelling Unit 0.847 0.847 connected to sewer on same parcel with Single- family residence (not meeting Accessory Dwelling Unit(3) criteria LE Accessory Dwelling Dwelling Unit 0 0 Unit(3)—within existing space LN Accessory Dwelling 1,000 sq. ft. 0.425 0.425 Unit(3)— new structure LC Common areas 1,000 sq. ft. 0.200 0.200 Page 1 of 5 June 7, 2018 Regular Board Meeting Agenda Packet- Page 91 of 446 Page 9 of 36 SCHEDULE OF CAPACITY FEES, RATES AND CHARGES - CONTINUED Residential Unit Equivalence (RUE) Factors0) Number of RUE = Unit of Measure Count Multiplied by the RUE Factor Gravity Pumping Eligible for Capacity Capacity Capacity Use Unit of Fee RUE Fee RUE Use Charge Code User Group Measure(2) Factor Factor Program AB Auto body/painting 1,000 sq. ft. 0.484 0.467 AD Auto dealerships 1,000 sq. ft. 0.484 0.467 AL Aircraft services 1,000 sq. ft. 0.484 0.467 AR Auto repair/maintenance 1,000 sq. ft. 0.484 0.467 AS Service stations 1,000 sq. ft. 0.484 0.467 BT Transportation services 1,000 sq. ft. 0.432 0.467 AC Car washes 1,000 sq. ft. 21.127 22.829 yes AW Car washes with recycling 1,000 sq. ft. 3.522 3.805 yes Barbers / beauty salons / BB pet grooming 1,000 sq. ft. 0.725 0.783 BC Dry cleaners, no laundry 1,000 sq. ft. 0.259 0.279 BR Retail sales 1,000 sq. ft. 0.259 0.279 Equipment repair/ repair BE services 1,000 sq. ft. 0.228 0.247 Contractors/ business BK services 1,000 sq. ft. 0.228 0.247 BN Nurseries/ lumberyards 1,000 sq. ft. 0.228 0.247 IL Light industrial 1,000 sq. ft. 0.228 0.247 BH Meeting halls / studios 1,000 sq. ft. 0.290 0.313 EA Auditoriums /theaters 1,000 sq. ft. 0.290 0.313 EC Cinemas 1,000 sq. ft. 0.290 0.313 EM Entertainment 1,000 sq. ft. 0.290 0.313 EB Bowling alleys 1,000 sq. ft. 0.311 0.336 BZ Miscellaneous commercial 1,000 sq. ft. 0.510 0.551 EG Golf courses / country clubs 1,000 sq. ft. 1.166 1.391 EH Health clubs / spas 1,000 sq. ft. 1.166 1.391 ET Tennis clubs 1,000 sq. ft. 1.166 1.391 IW Warehouses 1,000 sq. ft. 0.136 0.147 BM Markets 1,000 sq. ft. 0.556 0.601 BS Supermarkets 1,000 sq. ft. 0.880 0.601 BX Shopping centers 1,000 sq. ft. 1.057 1.142 OB Business offices 1,000 sq. ft. 0.295 0.319 OF Financial institutions/ banks 1,000 sq. ft. 0.295 0.319 OG Government offices 1,000 sq. ft. 0.295 0.319 OS Fraternal / service offices 1,000 sq. ft. 0.295 0.319 OM Medical offices 1,000 sq. ft. 0.637 0.688 OV Veterinary clinics 1,000 sq. ft. 0.637 0.688 RD Delicatessens 1,000 sq. ft. 1.166 1.294 RN Bars 1,000 sq. ft. 1.166 1.294 Page 2 of 5 June 7, 2018 Regular Board Meeting Agenda Packet- Page 92 of 446 Page 10 of 36 SCHEDULE OF CAPACITY FEES, RATES AND CHARGES - CONTINUED Residential Unit Equivalence (RUE) Factors0) Number of RUE = Unit of Measure Count Multiplied by the RUE Factor Gravity Pumping Eligible for Capacity Capacity Capacity Use Unit of Fee RUE Fee RUE Use Charge Code User Group Measure(2) Factor Factor Program RI Ice cream parlors 1,000 sq. ft. 1.166 1.294 RY Yogurt shops 1,000 sq. ft. 1.166 1.294 RS Restaurants dine-in 1,000 sq. ft. 4.010 2.738 yes RT Restaurants take-out 1,000 sq. ft. 4.010 2.738 yes Patio seating in excess RC of 300 square feet(4), 1,000 sq. ft. 1.166 0.825 banquet facilities RB Bakeries retail 1,000 sq. ft. 4.061 2.178 yes BL Laundromats 1,000 sq. ft. 13.506 14.594 yes SF Skilled nursing facilities 1,000 sq. ft. 2.216 2.347 yes Residential care facilities FE for the elderly 1,000 sq. ft. 0.932 0.987 HP Hospitals 1,000 sq. ft. 2.891 3.124 LH Hotels/ motels 1,000 sq. ft. 1.926 1.272 CH Churches 1,000 sq. ft. 0.242 0.261 Private and Public Schools Use codes SD, SE, SH, SI, SU Schools with cafeteria and qvm / showers Classroom 0.860 1.000 Schools with gym / showers and no cafeteria Classroom 0.774 0.900 Schools with cafeteria and no gym /showers Classroom 0.516 0.600 Schools without cafeteria or gym / showers Classroom 0.430 0.500 (1) Fees for multi-use buildings shall be determined by considering each use separately. (2)"Unit-of-measure" shall mean the basic unit that quantifies the degree of use of a particular parcel (e.g. dwelling unit, square footage). Square footage of an improvement shall be based upon the gross exterior dimensions of the structure. (3)Accessory Dwelling Units are 1,200 sq. ft. maximum and meet criteria of Gov't Code Sect 65852.2. (4) Patio seating capacity fees charged for patios at Dine-in Restaurants (RS)and Bars (RN). Page 3 of 5 June 7, 2018 Regular Board Meeting Agenda Packet- Page 93 of 446 Page 11 of 36 SCHEDULE OF CAPACITY FEES, RATES AND CHARGES — CONTINUED Special Studies The fees for Special Studies shall be as established in the Schedule of Environmental and Development-Related Fees, Rates, and Charges pursuant to the provisions of Chapter 6.30 of the District Code. The following user groups require a special study to determine the appropriate capacity fees. Administrative fees to conduct special studies for these user groups shall be waived. Use Code User Group BP Parking lots CM Cemeteries MO Mortuaries with embalming or cremation facilities EP Parks / playgrounds ES Swimming pools EF Large fitness / athletic clubs LR Residence hotels IE Electronic industries IH Heavy industries IP Permitted industries IR Laboratories / research facilities -- Improvements with garbage disposals -- Public facilities -- S ecial billings -- Utilities Values for use in the RUE formula in Section 6.12.050(D)(2) shall be: FLORU = 200 gpd BODRU = 200 mg/1 TSSRU = 215 m /l A = 0.69 B = 0.14 C = 0.17 Page 4 of 5 June 7, 2018 Regular Board Meeting Agenda Packet- Page 94 of 446 Page 12 of 36 SCHEDULE OF CAPACITY FEES, RATES AND CHARGES — CONTINUED Capacity Use Charge Program The minimum "initial payment" threshold gravity capacity fee RUE factor shall be 1.166 RUE/per one thousand square feet. Capacity Charge Capacity Use "Initial Pa ment" Charge Rates Pumping Gravity Capacity Current Year Capacity Fee Fee RUE ($/Month RUE Factor Factor 1,000 Sq. Ft.) Use (RUE/1,000 (RUE/1,000 Annual Code User Group Sq. Ft.) Sq. Ft.) ($/HCF AC Car washes 1.166 22.829 $1,147.51 $6.18 AW Car washes with recycling 1.166 3.805 $ 135.44 $4.38 BL Laundromats 1.166 14.594 $ 709.40 $5.98 HP Hospitals 1.166 3.124 $ 99.17 $3.90 LH Hotel/Motel 1.166 1.926 $ 43.69 $4.22 RB Bakeries (retail) 1.166 2.178 $ 166.43 $9.39 RS Restaurants (dine-in) 1.166 2.738 $ 163.49 $7.34 RT Restaurants (paper 1.166 2.738 $ 163.49 $7.34 service / no dishwashers SF Skilled nursing facilities 1.166 2.347 $ 60.36 $3.10 The annual interest rate for calculation of capacity use charges shall be as established in the Schedule of Environmental and Development-Related Fees and Charges pursuant to the Provisions of Chapter 6.30 of the District Code. Page 5 of 5 June 7, 2018 Regular Board Meeting Agenda Packet- Page 95 of 446 Page 13 of 36 CENTRAL CONTRA COSTA SANITARY DISTRICT Report Regarding the Capacity Fee Update March 27, 2018 INTRODUCTION Central Contra Costa Sanitary District (Central San) charges a Capacity Fee when properties are first connected to our public sewer or when there is an expansion or change of use for non-residential properties. Each year this fee is updated based on changes to the value of our assets and the number of Central San's customers. This memo summarizes the basis for the Capacity Fee and presents the calculations for the updated fee. BACKGROUND The total value of Central San's existing assets (approximately $1.9 billion) is much greater than the value of any future facilities expansion needed to accommodate future customers. While Central San's Fiscal Year (FY) 2017-18 proposed Capital Improvement Plan lists over $800 million in projects over the next 10 years, most of these projects are for renovation, regulatory compliance, replacement or upgrading of facilities to maintain capacity for both current and prospective customers. Central San believes that our facilities generally have adequate capacity to serve both existing and future customers. The Water Environment Federation's (WEF) Manual of Practice 27, Financing and Charges for Wastewater Systems defines several methods for calculating System Development Charges such as Central San's Capacity Fee. Central San uses the Equity Buy-in method and has used this methodology since 2001. Under this approach, new customers are charged at the same equity position as existing customers which is appropriate based on the level of assets, expansion, and capacity described above. California Senate Bill 1760, enacted in September 1998, defines Capacity Charges for water and sewer agencies in Section 66013 of the California Government Code. The equity buy-in method defined by WEF and used by Central San conforms to the requirements contained in Section 66013. Central San's Capacity Fee methodology and calculations were reviewed by Black & Veatch in the fall of 2017. Their March 2, 2018, report titled Wastewater Capacity Fee Review Study made the following findings: • The equity-buy-in methodology used by Central San is appropriate. • Central San's use of Replacement Cost Less Depreciation (RCLD) is appropriate. • The exclusion of contributed assets from the calculation is appropriate to avoid double recovery of assets. • The use of different service zones for gravity and pumped zones is appropriate. June 7, 2018 Regular Board Meeting Agenda Packet- Page 96 of 446 Page 14 of 36 Capacity Fee Update Report Page 2 March 27, 2018 CALCULATION APPROACH The Capacity Fee is adjusted each year to reflect the changes in the value of Central San's assets. It is calculated using the equity buy-in approach which divides the value of Central San's assets by the current number of Residential Unit Equivalents (RUEs) to determine the fee. The calculated value of Central San's assets is determined as follows: • Land: The current value of investments in real property is estimated based on the opportunity value of like cash investments deposited in Central San's temporary investments at the time of each purchase and held at interest to the present, rather than by attempting to determine actual market value. • Facilities: The current value of investments in physical facilities is estimated by escalating each year's facilities expenditures based on the change in the Engineering News Record Construction Cost Index for the San Francisco Bay Area (ENR CCI-SF) and then applying straight-line depreciation using the life cycles in Table 3 with no salvage value. Note that a category for "Mains (Renovation Program)" is included in the current value of facilities for determination of Capacity Fees. This category accounts for Central San's significant investment since 1988 in life-cycle replacement and renovation of sewers 10-inches in diameter and smaller. This work renews capacity in these smaller sewers for the benefit of both existing and new connectors and reduces future maintenance costs. • Fund Balances: Prior fiscal year ending balances for the Sewer Construction, Running Expense, Debt Service and Self Insurance Funds are used. The Sewer Construction Fund Balance is reduced by the principal value of Central San's outstanding debt. Contributed assets are generally not included in the calculation in order to avoid double recovery of costs, as described in Manual of Practice 27. After estimating the current value for an asset category, the component of the Capacity Fee attributable to that category is calculated by dividing current value by the current number of customers as shown below. The number of customers is determined by calculating the number of RUEs. Value of Assets Equity Buy-in Fee = ---------------------------------------- Number of Customers (RUEs) June 7, 2018 Regular Board Meeting Agenda Packet- Page 97 of 446 Page 15 of 36 Capacity Fee Update Report Page 3 March 27, 2018 RECOMMENDED CAPACITY FEE Staff recommends that the Board adopt Capacity Fees for FY 2018-19 by applying the valuation approach and facilities life cycles described above. The updated fees are: Fee Category Current Proposed % Change Gravity Service $6,300 per RUE $6,700 per RUE 6.3% Pumping Service $7,939 per RUE $8,336 per RUE 5.0% The recommended fee calculation approach is a rational, practical, equitable and defensible method to determine the financial burden of new connections. A breakdown of the proposed Capacity Fees by asset category is presented in Table 1. Table 2 shows a comparison of the proposed Capacity Fees to the fees charged by neighboring agencies. The service life assumptions for each asset category are included in Table 3. Attached Supporting Documents: 1. Table 1 — Capacity Fees Calculation 2. Table 2— Comparison of Capacity Fees 3. Table 3—Average Useful Service Life June 7, 2018 Regular Board Meeting Agenda Packet- Page 98 of 446 CENTRAL CONTRA COSTA SANITARY DISTRICT Report Regarding Capacity Fee Update Table 1-Capacity Fees Calculation-FY 2018-19 (Buy-in to all assets. Values through 06/30/2017) Value per FY 2017- Asset Category Asset Value' RUE 18 Value Change Change (S/RUE) per RUE ($) N Land $50,891,879 $301 $292 $9 3.1% Facilities Treatment Plant/Outfall (45% @ 100 yrs+20% @ 75 yrs+35% @ 30 yrs) $354,243,285 $2,095 $1,998 $97 4.9% Recycled Water Facilities(75% @ 50 yrs+25% @ 30 yrs) $18,621,970 $110 $106 $4 3.8% Collection System Trunks and Interceptors(30% @ 150 yrs+70% @ 100 yrs) $338,991,159 $2,005 $1,893 $112 5.9% Contributed Mains(100% @ 75 yrs) $658,442,000 not included District Renovated Mains(100% @ 100 yrs) $212,349,324 $1,256 $1,167 $89 7.6% Pumping Stations(45% @ 100 yrs+20% @ 75 yrs+35% @ 30 yrs) $81,061,594 $1,636 3 $1,639 ($3) -0.2% General Improvements(Buildings, Equipment, etc.) $66,786,528 $395 $383 $12 3.1% (50% @ 50 yrs+35% @ 25 yrs+ 15% @ 10 yrs) Major Repairs(100% @ 10 yrs) $11,586,433 $69 $64 $5 7.8% Sewer Construction Fund Balance(net of outstanding debt) $35,405,400 $209 $170 $39 22.9% Running Expense Fund & Debt Service Fund Balances $38,115,613 $225 $196 $29 14.8% Self Insurance Fund Balance $5,858,682 $35 $31 $4 12.9% TOTAL VALUE: $1,872,353,868 Capacity Fee-Gravity Service $1,132,850,273 $6,700 $6,300 $400 6.3% Capacity Fee- Pumped Service $1,213,911,868 $8,336 4 $7,939 $397 5.0% 169,113 Total Residential Unit Equivalents(RUES) 49,196 Pumped Zone RUES Notes: 1. Original cost escalated to current dollars less depreciation except land which is original cost escalated by opportunity cost 2.Asset value divided by total RUES unless otherwise noted 3. Pumped component equals asset value divided by pumped zone RUES 4. Gravity Service Capacity Fee plus pumped component 03/27/18 June 7, 2018 Regular Board Meeting Agenda Packet- Page 99 of 446 Page 17 of 36 CENTRAL CONTRA COSTA SANITARY DISTRICT Report Regarding Capacity Fee Update Table 2 — Comparison of Capacity Fees AGENCY CAPACITY FEE Dublin San Ramon Services District $17,470 Mt View Sanitary District $9,371 Proposed CCCSD Pumped Zone $8,336 Current CCCSD Pumped Zone $7,939 Antioch (Delta Diablo Sanitation District for Treatment) $7,836 Proposed CCCSD Gravity Zone $6,700 Current CCCSD Gravity Zone $6,300 Concord $5,043 West County Wastewater District $5,744 Pittsburg (Delta Diablo Sanitation District for Treatment) $4,358 Bay Point(Delta Diablo Sanitation District for Treatment) $3,940 Based on publicly available data as of March 27, 2018 June 7, 2018 Regular Board Meeting Agenda Packet- Page 100 of 446 Page 18 of 36 CENTRAL CONTRA COSTA SANITARY DISTRICT Report Regarding the Capacity Fee Update Table 3 - Average Useful Service Life Gravity Sewers Interceptors 150 years Trunks 100 years Mains (Renovated by District) 100 years Treatment Plant & Pumping Station Facilities Tanks/Foundations 100 years Buildings 75 years Mechanical, Electrical & Control Equipment 30 years Recycled Water Facilities Pipelines 50 years Mechanical, Electrical & Control Equipment 30 years General Improvements Buildings 50 years Mechanical/Electrical Equipment and Furnishings 25 years Vehicles and other Equipment 10 years Major Repairs/Replacements 10 years June 7, 2018 Regular Board Meeting Agenda Packet- Page 101 of 446 Page 19 of 36 ORDINANCE NO. AN ORDINANCE OF THE CENTRAL CONTRA COSTA SANITARY DISTRICT ADOPTING AN UNCODIFIED SCHEDULE OF ENVIRONMENTAL AND DEVELOPMENT-RELATED FEES AND CHARGES IN ACCORDANCE WITH DISTRICT CODE CHAPTER 6.30 WHEREAS, the Board of Directors (Board) of the Central Contra Costa Sanitary District (Central San) finds that Central San incurs substantial costs to provide various environmental and development services, such as, but not limited to, administration and processing of annexations, customer assistance at the permit counter, plan review and inspection for sewer line installation, alteration, replacement and repair, the inclusion of new information on Central San's maps, administration and permit inspection related to the Source Control Program, permitting of septage and grease haulers, and treatment of grease and septage at the treatment plant; and WHEREAS, the Board finds that it is necessary to charge customers and other users of Central San's services to recover the reasonable cost of providing said services; and WHEREAS, Central San staff has comprehensively analyzed the actual cost of providing the various environmental and development services listed above based on direct costs, staff costs and overhead for time and effort incurred to provide listed services; and WHEREAS, the Board finds that the Schedule of Environmental and Development- Related Fees and Charges, as reflected in Exhibit "A" to this Ordinance, reasonably represents the actual costs to provide the services delineated in said Schedule of Fees and Charges; and WHEREAS, the Board finds that this action is categorically exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15273 (a)(1) and (3) of the State CEQA Guidelines, in that the Fees and Charges are being charged merely to reimburse Central San for staff costs and expenses. NOW, THEREFORE, the Board of Directors of the Central Contra Costa Sanitary District does hereby ordain as follows: Section 1 (To be uncodified) The Schedule of Environmental and Development-Related Fees and Charges as set forth in full in Exhibit "A" to this Ordinance, which exhibit is hereby incorporated in full herein by this reference, is hereby adopted in uncodified form pursuant to the provisions of District Code Chapter 6.30. As of the effective date of this Ordinance, the fees and charges for each environmental and development service shall be as set forth in said schedule, and shall remain in effect until amended or replaced by ordinance. June 7, 2018 Regular Board Meeting Agenda Packet- Page 102 of 446 Page 20 of 36 Ordinance No. Page 2 of 2 Central Contra Costa Sanitary District Section 2 All ordinances and parts of ordinances in conflict with the provisions of this Ordinance are repealed. The provisions of this Ordinance, insofar as they are substantially the same as existing provisions relating to the same subject matter shall be construed as restatements and continuations thereof and not as new enactments. To the extent this Ordinance or any portion or section of this Ordinance is determined invalid or unconstitutional, such portions of Ordinance No. 297 shall remain in effect and such Fees and Charges due thereunder for any categories of users shall remain due and payable as if those portions of Ordinance No. 297 have not been repealed. With respect, however, to violations, rights accrued, liabilities accrued, or appeals taken, prior to the effective date of this Ordinance, under any chapter, ordinance, or part of an ordinance, such chapter, ordinance or part of an ordinance shall be deemed to remain in full force for the purpose of sustaining any proper suit, action, or other proceedings, with respect to any such violation, right, liability or appeal. Section 3 This Ordinance shall be a general regulation of Central San and shall be published in the Contra Costa Times and San Ramon Valley Times, newspapers of general circulation, published and circulated within Central San and shall be effective as of July 1, 2018. PASSED AND ADOPTED by the Board of Directors of the Central Contra Costa Sanitary District on the 7th day of June, 2018, by the following vote: AYES: Members: NOES: Members: ABSENT: Members: James A. Nejedly President of the Board of Directors Central Contra Costa Sanitary District County of Contra Costa, State of California COUNTERSIGNED: Katie Young Secretary of the District Central Contra Costa Sanitary District County of Contra Costa, State of California Approved as to form: Kenton L. Alm, Esq. Counsel for the District June 7, 2018 Regular Board Meeting Agenda Packet- Page 103 of 446 EXHIBIT A CENTRAL CONTRA COSTA SANITARY DISTRICT ENVIRONMENTAL AND DEVELOPMENT-RELATED FEES & CHARGES FOR 2018-19 (uncodified) This Schedule of Environmental and Development-Related Rates and Charges,to be effective July 1,2018,was established by the Central Contra Costa Sanitary District Ordinance No.302,adopted June 1,2018. Fee Category Amount (A) DEVELOPMENT AND PLAN REVIEW Review of new sewer plans and related documents;review of plans for and processing of residential and commercial permit applications;installer reimbursement of sewer construction costs from subsequent connectors;identification of right-of-way conflicts. (A-1) Development Review: Mainline Plan Review actual cost): Base Fee (minimum charge- includes four hours of plan review) $3,764 Each additional hour in excess of base fee $190 Special Cut Sheet Review $378 Manhole only design & plan review $1,382 Right of Way Document Review- IOD/Sub Map (each): $835 Right of Way Document Review- No Changes Required $533 Right of Way document review-Appurtenance (initial): $740 ff Appurtenance (each additional) $285 (A-2) Application Fees Overflow Protection Device Installation (OPD only) no charge Side Sewer Cleanout installation (to facilitate installation of OPD only; $25 permit not upgradable) Basic Application (side sewer work, easement staking, permit renewal) $153 Existing parcel - new sewer service $248 New parcel - new sewer service $331 Commercial Application (includes up to one hour of plan review) $368 Commercial Application Plan Review-Add'I hours, covers review of plans for a $174 change in use or expansion of a commercial facility, time in excess of one hour Capacity Use Program $506 Capacity Fee Installment Program and Promissory Note Program $506 (A-3) Reimbursement Accounts: Set-up fee $1,464 Transaction fee $221 (A-4) Special Studies Base fee 4 hours plus misc. costs $781 Each additional hour $171 Source Control Business Review- base fee, includes plan review, site visit and $1,017 inspection time up to four hours Source Control Business Review- each additional hour in excess of four hour base $207 fee for plan review, site visit and inspection time Grease Variance Review (includes site visit) $401 Site Collector Plan Check $473 Source Control Enforcement Review and Inspection $566 (A-5) Private pumping system plan check- Commercial (Outside Force Main) $809 Additional Review $367 Private pumping system plan check- Residential $424 (A-6) Annexation Fee $609 (A-7) I Special Approvals $426 EXHIBIT A CENTRAL CONTRA COSTA SANITARY DISTRICT ENVIRONMENTAL AND DEVELOPMENT-RELATED FEES & CHARGES FOR 2018-19 (uncodified) (B) CONSTRUCTION INSPECTION Inspection of new sewer main construction and new connections and other sewer work on private property (includes TV inspection when appropriate). (13-1) Mainline Inspection contributed assets): Base Fee $915 Per Foot Charge in street $14.38 Per Foot Charge (in undeveloped land) $9.77 New Manhole, Rodding Inlet $972 (B-2) Inspections by type: Overflow Protection Device installation (OPD only) no charge Side Sewer Cleanout installation (to facilitate installation of OPD only) $50 Side Sewer Installation / Repair per 100 feet: $243 Single Inspection Charge (e.g. sewer connection; encroachment verification; side sewer cap on property; tap and lateral (new or replacement); air test; $243 reinspection; homeowner preconstruction inspection) Manhole tap; lateral abandonment at main; pipe bursting; trash enclosure $486 w/o trap; side sewer CIPP repair; outdoor grease trap only Manhole Alteration; trash enclosure with trap; grease interceptor abandonment $729 Outside pump installation $972 New Manhole or Rodding Inlet (private) $972 Grease/Sand /Oil Interceptor $1,458 (B-3) Overtime inspection: First Hour if responding from off-site $123 Every hour thereafter $80 Weekend/Holiday (New Year's Day, Martin Luther King, President's Day, Memorial Day, July 4th, Labor Day, Veteran's Day, Thanksgiving, Christmas) $363 -4 hr. minimum (13-4) Inspection of non-permitted work(+ avoided charge) $1,147 EXHIBIT A CENTRAL CONTRA COSTA SANITARY DISTRICT ENVIRONMENTAL AND DEVELOPMENT-RELATED FEES & CHARGES FOR 2018-19 (uncodified) Fee Category Application (13-5) INSPECTION CHARGES FOR NEW CONNECTIONS (Informational Only) The following fees have been in effective since July 1, 2014. This information is to clarify how fees are applied and charged for new connections. This procedure coincides with the 2014 Update to the CCCSD Standard Specifications. Current procedure at the Permit Counter is to collect all connection and inspection fees for new construction when a structure's roof is on and the rough plumbing is installed ("Roof and Rough"). Under the new procedure, a developer can choose to: 1. Connect at Roof and Rough, or 2. Connect at building foundation following the procedures outlined in the 2014 Edition of the Standard Specifications. For either scenario, connection fees will be due and payable prior to permit issuance(consistent with CCCSD Standard Specifications Ed. 2011; Section 3-07 Payment of Fees and Charges.) The changes affect Category (B) Construction Inspection Section (B-2) and are shown below: Residential Connections (up to and including four units) at Roof and Rough: This fee is for inspection of new residential units connecting to CCCSD's mainline after the structure's roof is on and the rough plumbing has been installed. This fee $486 per unit includes: one building connection inspection and one side sewer inspection (up to 100 feet). Additional inspections and related fees may be required. Residential Connections (up to and including four units) at building foundation: This fee is for inspection of new residential units connecting to CCCSD's mainline prior to structure being roofed and rough plumbing being installed. This fee includes: one building connection inspection, one side sewer inspection (up to 100 feet), and two $972 per unit additional inspections as required per CCCSD Standard Specifications. Additional inspections and related fees may be required. Commercial/Multiple Residential Connections (more than four units) at Roof and Rough: This fee is for inspection of new commercial or multiple residential units connecting to CCCSD's mainline after structure's roof is on and the rough plumbing has been installed. This fee includes: one building connection inspection and one side $486 per unit sewer inspection (up to 100 feet). Additional inspections and related fees may be required. Commercial/Multiple Residential Connections (more than four units) at building foundation: This fee is for inspection of new commercial or multiple residential units connecting to CCCSD's mainline prior to structure being roofed and rough plumbing being installed. This fee includes: one building connection inspection, one side sewer $1,215 per unit inspection (up to 100 feet), one pre-construction meeting, and two additional inspections as required per CCCSD Standard Specifications. Additional inspections and related fees may be required. EXHIBIT A CENTRAL CONTRA COSTA SANITARY DISTRICT ENVIRONMENTAL AND DEVELOPMENT-RELATED FEES & CHARGES FOR 2018-19 (uncodified) Fee Category Amount (C) COLLECTION SYSTEM SERVICES TV inspection of sewers conducted separate from a construction inspection activity; verification of sewer location and sewer service connection. (C-1) TV Inspection: Weekday, hourly rate $294 Minimum Charge 2 hour minimum $588 Overtime - First Hour $180 Overtime - Each Additional Hour $140 Overtime -Weekend / Holiday (4 hour minimum) $600 C-2 Dye test $363 (C-3) Collection system repair Actual Expense (C-4) Cancelled TV Inspection without prior notice $537 C-5 Sewer locating and marking $333 (D) RIGHT-OF-WAY Establishing right-of-way agreements and resolving conflicts. (D-1) Process Quitclaim Deeds $1,417 Process Quitclaim Deed - plat and legal by others $848 (D-2) Process Real Property Agreement, License, or Easement Base Fee minimum charge) $1,164 Each Additional Hour(after 2 hours) $183 D-3 Right-of-way Research / Encroachment Resolution Fee Actual Expense (D-4) Right of Entry/ Encroachment Permit Fee $261 (E) MISCELLANEOUS District services provided for private sewer projects;interest rates for CCCSD programs; copying fees. (E-1) Engineering - private sewer projects Actual Expense (E-2) Soil evaluation - private sewer projects Actual Expense (E-3) Surveying Actual Expense (E-4) Minimum annual interest rate for CADS and Capacity Use Program 6.00% (E-5) Document/ Plan Copying Fees 8 1/2"x 11"; 8 1/2"x 14"; 11" x 17" (per sheet) $0.15 24" x 36" Plan (per sheet) $3.00 CCCSD Standard Specifications $20.00 Multiplier to be applied to Alhambra Valley Assessment District (AVAD) 2010-11 (E-6) Parcel Assessment Amount listed in Ordinance 262-Exhibit B to determine AVAD 1.04592 Reimbursement Fee amounts applicable to connections in 2018-19. Multiplier to be applied to St. Mary's Road Contractual Assessment District (CAD) (E-9) 2011-1 Reimbursement Fees listed in Ordinance 279-Exhibit B. Applicable to 0.95226 connections in 2018-19 EXHIBIT A CENTRAL CONTRA COSTA SANITARY DISTRICT ENVIRONMENTAL AND DEVELOPMENT-RELATED FEES & CHARGES FOR 2018-19 (uncodified) Fee Category Amount (F) INDUSTRIAL PERMIT FEES Permitting and inspection of industries and other commercial dischargers to ensure availability and use of pretreatment processes. Base permit fee of (F-1) Class I Fees $3,450 + cost of District's lab analysis Base permit fee of (F-2) Class II Fees $3,450 + cost of District's lab analysis F-3 Class III Fees $0 F-4 Industrial user permit application fee $0 (F-5) Special discharge permit application fee (*) No on-site inspection, no Capacity Review $335 On-site inspection $812 Additional charge for Capacity Review(Required for discharges >50 m $259 (G) SEPTAGE DISPOSAL(") Sampling and disposal of septic waste and grease. G-1 Annual permitfee $1,404 (G-2) Residential septic/toilet waste < 2,000 gallons $40 + $0.15/gal. > 2,000 gallons $80 + $0.15/gal. (G-3) Restaurant grease waste < 2,000 gallons $40 + $0.03/gal. > 2,000 gallons $80 + $0.03/ al. (*)Additional charges to be billed separately if staff time incurred is above that included in the base fee. (**) Other approved waste will be charged at the residential septic and portable toilet waste rate unless actual strength characteristics are provided. Page 26 of 36 CENTRAL CONTRA COSTA SANITARY DISTRICT Report Regarding Environmental and Development-Related Fees and Charges Update April 17, 2018 OVERVIEW The Central Contra Costa Sanitary District (Central San) Board of Directors will soon consider adopting an ordinance to revise Chapter 6.30, Schedule of Fees and Charges, for various environmental and development services. BACKGROUND Chapter 6.30 of the District Code includes a schedule of fees and charges for environmental and development services provided to property owners, contractors, developers, septic and grease waste haulers, and permitted industrial users. These services include permitting; plan review; inspection of construction for side sewers and main line extensions; addition of new sewers, parcels, and permit information to Central San's maps; source control permits and inspections; and septic and grease hauler sampling and treatment. These fees and charges are intended to recover Central San's direct and indirect labor costs, other operating expenses, and administrative overhead incurred in providing the services. The last update to these fees was on June 1, 2017. Central San staff reviews the fees and the costs to provide the corresponding services annually to assess whether changes are appropriate. The State of California mandates that fees and charges not exceed the cost of providing the service for which a fee or charge is levied. PROPOSED FEES AND CHARGES For Fiscal Year (FY) 2018-19, staff is recommending changes to the Schedule of Fees and Charges based on recovering the cost for the service provided, taking into consideration relevant operating costs, including current labor costs and updated mileage costs. A comparison of the current and proposed fees and charges is shown in Attachment 1. Fee Increases The Alhambra Valley Contractual Assessment District (AVAD) multiplier and the St. Mary's Road Contract Assessment District (CAD) multiplier have a proposed increase of 0.754% which reflects the latest State of California Pooled Money Investment Account (PMIA) annual yield. The use of PMIA for the AVAD and St. Mary's Road CAD multipliers was specified at the time the fees were established. June 7, 2018 Regular Board Meeting Agenda Packet- Page 109 of 446 Page 27 of 36 Report Regarding Environmental and Development-Related Fees & Charges Page 2 April 17, 2018 Fees charged for septage permits and disposal were reviewed to ensure the fees appropriately reflect Central San's time spent administering the service and treating the waste. The annual permit fee was reduced 24.7% to $1,404 annually which better reflects actual time spent reviewing and processing the annual permits. The per-load septage disposal and treatment fees were increased by $20 per load to better reflect the time spent by staff. The restaurant grease waste fee was increased by $20 per load and $0.01 per gallon. The remaining fees with changes have proposed increases between 0.8% and 2.9% reflecting increases in Central San's labor costs and administrative overhead. The average increase of these fees (not including the changes to the septage and grease waste fees) is 1.5%. Variations in the number of labor hours, overtime hours, and mileage used as the basis for each fee are the source of the variability in the proposed increases. SUMMARY If the proposed revisions to the Schedule of Environmental and Development-Related Fees and Charges are adopted 16 charges will remain unchanged, 72 charges will increase, and one fee will decrease. Using the range of increases in attachment, staff estimates that increased revenue in the categories where increases to charges are recommended would be between $18,000 and $68,000. (Current year revenue for Environmental and Development-Related Fees and Charges is budgeted at just over $2.3 million.) Supporting Document: Attachment 1 - Comparison of Current& Proposed Fees and Charges for FY 2018-19 June 7, 2018 Regular Board Meeting Agenda Packet- Page 110 of 446 Page 28 of 36 ATTACHMENT 1 CENTRAL CONTRA COSTA SANITARY DISTRICT COMPARISON OF CURRENT & PROPOSED FEES & CHARGES FOR FY 2018-19 DRAFT Fee Category Current Fee Proposed Fee %Change (A) DEVELOPMENT AND PLAN REVIEW Review of new sewer plans and related documents;review of plans for and processing of residential and commercial permit applications;installer reimbursement of sewer construction costs from subsequent connectors;identification of right-of-way conflicts. (A-1) Development Review: Mainline Plan Review(actual cost): Base Fee(minimum charge-includes four hours of plan review) $3,717 $3,764 1.3% Each additional hour in excess of base fee $188 $190 1.1% Special Cut Sheet Review $373 $378 1.3% Manhole only design&plan review $1,364 $1,382 1.3% Right of Way Document Review- IOD/Sub Map(each): $824 $835 1.3% Right of Way Document Review-No Changes Required $526 $533 1.3% Right of Way document review-Appurtenance(initial): $730 $740 1.4% Appurtenance(each additional) $281 $285 1.4% (A-2) Application Fees: Overflow Protection Device Installation(OPD only) no charge no charge no change Side Sewer Cleanout installation (to facilitate installation of OPD only; permit not $25 $25 no change upgradable) Basic Application (side sewer work,easement staking, permit renewal) $151 $153 1.3% Existing parcel -new sewer service $245 $248 1.2% New parcel-new sewer service $328 $331 0.9% Commercial Application(includes up to one hour of plan review) $364 $368 1.1% Commercial Application Plan Review-Additional hours, covers review of plans $172 $174 1.2% for a change in use or expansion of a commercial facility,time in excess of one hour Capacity Use Charge Program $499 $506 1.4% Capacity Fee Installment Program and Promissory Note Program $499 $506 1.4% (A-3) Reimbursement Accounts: Set-up fee $1,444 $1,464 1.4% Transaction fee $218 $221 1.4% (A-4) Special Studies: Base fee(4 hours plus misc. costs) $770 $781 1.4% Each additional hour $168 $171 1.8% Source Control Business Review-base fee, includes plan review,site visit and $1,002 $1,017 1.5% inspection time up to four hours Source Control Business Review-each additional hour in excess of four hour base $204 $207 1.5% fee for plan review, site visit and inspection time Grease Variance Review(includes site visit) $396 $401 1.3% Site Collector Plan Check $467 $473 1.3% Source Control Enforcement Review and Inspection $559 $566 1.3% (A-5) Private pumping system plan check-Commercial(Outside Force Main) $800 $809 1.1% Additional Review $363 $367 1.1% Private pumping system plan check-Residential $419 $424 1.2% (A-6) Annexation Fee $600 $609 1.5% 11 (A-7) iSpecial Approvals $421 $426 1.2% Revised: 04/18/18 Attach 1 -Env Dev Rates Comparison 2018-04-17.xlsx Page 1 June 7, 2018 Regular Board Meeting Agenda Packet- Page 111 of 446 Page 29 of 36 ATTACHMENT 1 CENTRAL CONTRA COSTA SANITARY DISTRICT COMPARISON OF CURRENT & PROPOSED RATES & CHARGES FOR FY 2018-19 DRAFT (B) CONSTRUCTION INSPECTION Inspection of new sewer main construction and new connections and other sewer work on private property(includes TV inspection when appropriate). (B-1) Mainline Inspection (contributed assets): Base Fee $905 $915 1.1% Per Foot Charge(in street) $14.17 $14.38 1.5% Per Foot Charge(in undeveloped land) $9.63 $9.77 1.5% New Manhole, Rodding Inlet $960 $972 1.3% (B-2) Inspections by type: Overflow Protection Device installation(OPD only) no charge no charge no change Side Sewer Cleanout installation (to facilitate installation of OPD only) $50 $50 no change Side Sewer Installation/Repair per 100 feet: $240 $243 1.3% Single Inspection Charge(e.g. sewer connection;encroachment verification; side sewer cap on property;tap and lateral (new or replacement); air test; $240 $243 1.3% reinspection; homeowner preconstruction inspection) Manhole tap; lateral abandonment at main; pipe bursting;trash enclosure $480 $486 1.3% w/o trap; side sewer CIPP repair;outdoor grease trap only Manhole Alteration;trash enclosure with trap; grease interceptor abandonment $720 $729 1.3% Outside pump installation $960 $972 1.3% New Manhole or Rodding Inlet(private) $960 $972 1.3% Grease/Sand/Oil Interceptor $1,440 $1,458 1.3% (B-3) Overtime inspection: First Hour(if responding from off-site) $120 $123 2.5% Every hour thereafter $78 $80 2.6% Weekend/Holiday(New Year's Day, Martin Luther King, President's Day, Memorial Day,July 4th, Labor Day,Veteran's Day,Thanksgiving, Christmas)- $354 $363 2.5% 4 hour minimum (B-4) lInspection of non-permitted work(+avoided charge) $1,133 $1,147 1.2% Revised: 04/18/18 Attach 1 -Env Dev Rates Comparison 2018-04-17.xlsx Page 2 June 7, 2018 Regular Board Meeting Agenda Packet- Page 112 of 446 Page 30 of 36 ATTACHMENT 1 CENTRAL CONTRA COSTA SANITARY DISTRICT COMPARISON OF CURRENT & PROPOSED RATES & CHARGES FOR FY 2018-19 DRAFT Fee Category Application of Fee (13-5) INSPECTION CHARGES FOR NEW CONNECTIONS(Informational Only) The following fees have been in effective since July 1, 2014. This information is to clarify how fees are applied and charged for new connections. This procedure coincides with the 2014 Update to the CCCSD Standard Specifications. Current procedure at the Permit Counter is to collect all connection and inspection fees for new construction when a structure's roof is on and the rough plumbing is installed("Roof and Rough"). Under the new procedure, a developer can choose to: 1. Connect at Roof and Rough, or 2. Connect at building foundation following the procedures outlined in the 2014 Edition of the Standard Specifications. For either scenario, connection fees will be due and payable prior to permit issuance (consistent with CCCSD Standard Specifications Ed. 2011;Section 3-07 Payment of Fees and Charges.) The changes affect Category(B)Construction Inspection Section (13-2)and are shown below: Residential Connections(up to and including four units)at Roof and Rough: This fee is for inspection of new residential units connecting to CCCSD's mainline after the structure's roof is on and the rough plumbing has been installed. This fee $480 per unit $486 per unit 1.3% includes: one building connection inspection and one side sewer inspection(up to 100 feet). Additional inspections and related fees may be required. Residential Connections(up to and including four units)at building foundation: This fee is for inspection of new residential units connecting to CCCSD's mainline prior to structure being roofed and rough plumbing being o installed. This fee includes: one building connection inspection,one side sewer $960 per unit $972 per unit 1.3/o inspection(up to 100 feet), and two additional inspections as required per CCCSD Standard Specifications. Additional inspections and related fees may be required. Commercial/Multiple Residential Connections(more than four units)at Roof and Rough: This fee is for inspection of new commercial or multiple residential units connecting to CCCSD's mainline after structure's roof is on and the rough o plumbing has been installed. This fee includes: one building connection inspection $480 per unit $486 per unit 1.3/o and one side sewer inspection (up to 100 feet). Additional inspections and related fees may be required. Commercial/Multiple Residential Connections(more than four units)at building foundation: This fee is for inspection of new commercial or multiple residential units connecting to CCCSD's mainline prior to structure being roofed and rough plumbing being installed. This fee includes: one building connection $1200 per unit $1215 per unit 1.3% inspection,one side sewer inspection (up to 100 feet), one pre-construction meeting, and two additional inspections as required per CCCSD Standard Specifications. Additional inspections and related fees may be required. Revised: 04/18/18 Attach 1 -Env Dev Rates Comparison 2018-04-17.xlsx Page 3 June 7, 2018 Regular Board Meeting Agenda Packet- Page 113 of 446 Page 31 of 36 ATTACHMENT 1 CENTRAL CONTRA COSTA SANITARY DISTRICT COMPARISON OF CURRENT & PROPOSED RATES & CHARGES FOR FY 2018-19 DRAFT Fee Category Current Fee Proposed Fee %Change (C) COLLECTION SYSTEM SERVICES TV inspection of sewers conducted separate from a construction inspection activity;verification of sewer location and sewer service connection. (C-1) TV Inspection: Weekday, hourly rate $290 $294 1.4% Minimum Charge(2 hour minimum) $580 $588 1.4% Overtime-First Hour $175 $180 2.9% Overtime-Each Additional Hour $136 $140 2.9% Overtime-Weekend/Holiday(4 hour minimum) $583 $600 2.9% (C-2) Dye test $359 $363 1.1% (C-3) Collection system repair Actual Expense Actual Expense no change (C-4) Cancelled TV Inspection without prior notice $530 $537 1.3% (C-5) Sewer locating and marking 1 $329 1 $333 1.2% (D) RIGHT-OF-WAY Establishing right-of-way agreements and resolving conflicts. (D-1) Process Quitclaim Deeds $1,401 $1,417 1.1% Process Quitclaim Deed-plat and legal by others $838 $848 1.2% (D-2) Process Real Property Agreement, License, or Easement: Base Fee(minimum charge) $1,150 $1,164 1.2% Each Additional Hour(after 2 hours) $181 $183 1.1% (D-3) Right-of-way Research/Encroachment Resolution Fee Actual Expense Actual Expense no change (D-4) Right of Entry/Encroachment Permit Fee $257 $261 1 1.6% (E) MISCELLANEOUS District services provided for private sewer projects;interest rates for CCCSD programs;copying fees. (E-1) Engineering-private sewer projects Actual Expense Actual Expense no change (E-2) Soil evaluation-private sewer projects Actual Expense Actual Expense no change (E-3) Surveying Actual Expense Actual Expense no change (E-4) Minimum annual interest rate for CADS and Capacity Use Program 6.00% 6.00% no change (E-5) Document/Plan Copying Fees: 8 1/2"x 11"; 8 1/2"x 14"; 11"x 17"(per sheet) $0.15 $0.15 no change 24"x 36"Plan(per sheet) $3.00 $3.00 no change CCCSD Standard Specifications $20.00 $20.00 no change Multiplier to be applied to Alhambra Valley Assessment District(AVAD) 2010-11 (E-6) Parcel Assessment Amount listed in Ordinance 262-Exhibit B to determine AVAD 1.03810 1.04592 0.8% Reimbursement Fee amounts applicable to connections in FY 2018-19. Multiplier to be applied to St. Mary's Road Contractual Assessment District(CAD) (E-7) 2011-1 Reimbursement Fees listed in Ordinance 279-Exhibit B. Applicable to 0.94513 0.95226 0.8% connections in FY 2018-19. Revised: 04/18/18 Attach 1 -Env Dev Rates Comparison 2018-04-17.xlsx Page 4 June 7, 2018 Regular Board Meeting Agenda Packet- Page 114 of 446 Page 32 of 36 ATTACHMENT 1 CENTRAL CONTRA COSTA SANITARY DISTRICT COMPARISON OF CURRENT & PROPOSED RATES & CHARGES FOR FY 2018-19 DRAFT Fee Category Current Fee Proposed Fee %Change (F) INDUSTRIAL PERMIT FEES Permitting and inspection of industries and other commercial dischargers to ensure availability and use of pretreatment processes. Base permit fee of Base permit fee of (F-1) Class I Fees $3,450+cost of $3,500+cost of 1.4% District's lab District's lab analysis analysis Base permit fee of Base permit fee of (F-2) Class 11 Fees $3,450+cost of $3,500+cost of 1.4% District's lab District's lab analysis analysis (F-3) Class III Fees $0 $0 no change (F-4) Industrial user permit application fee $0 $0 no change (F-5) Special discharge permit application fee(`): No on-site inspection, no capacity review $330 $335 1.5% On-site inspection $800 $812 1.5% Additional charge for capacity review(Required for discharges>50 gpm) $255 $259 1.6% (G) SEPTAGE DISPOSAL(--) Sampling and disposal of septic waste and grease. (G-1) Annual permit fee $1,865 $1,404 -24.7% (G-2) Residential septic/toilet waste: <2,000 gallons $20+$0.15/gal $40+$0.15/gal. 6.3% >2,000 gallons $60+$0.15/gal $80+$0.15/gal. 5.6% (G 3) Restaurant grease waste: <2,000 gallons $20+$0.02/gal $40+$0.03/gal. 66.7% >2,000 gallons $60+$0.02/gal $80+$0.03/gal. 1 40.0% (`)Additional charges to be billed separately if staff time incurred is above that included in the base fee. (**)Other approved waste will be charged at the residential septic and portable toilet waste rate unless actual strength characteristics are provided. Percent change in septage and restaurant grease fees based on an assumed volume of 2,000 gallons Revised: 04/18/18 Attach 1 -Env Dev Rates Comparison 2018-04-17.xlsx Page 5 June 7, 2018 Regular Board Meeting Agenda Packet- Page 115 of 446 Page 33 of 36 - CAPACITY FEE AND ENVIRONMENTAL AND w DEVELOPMENT-RELATED FEE UPDATES Thomas Brightbill Senior Engineer June 7, 2018 Board of Directors Meeting 1 CONDUCT PUBLIC HEARING ON THE FOLLOWING MATTERS: Annual update of Capacity Fees Annual update of Environmental and Development-related Fees and Charges i 1 June 7, 2018 Regular Board Meeting Agenda Packet- Page 116 of 446 Page 34 of 36 CAPACITY FEE UPDATE One-time "buy-in" fee charged at time of connection or expansion Capacity Fee = Value of District Assets Number of Residential Unit Equivalents (RUE) Proposed adjustments increase gravity zone fee to $6,700/RUE (6.3%) increase pumped zone fee to $8,336/RUE (5.0%) Would result in approximately $400,000 more revenue if approved 1 CAPACITY FEE REVIEW STUDY Capacity Fee methodology and practices reviewed by Black & Veatch. Findings confirmed appropriateness of: Equity Buy-in method Replacement Cost Less Depreciation method to determine asset value Exclusion of contributed assets Separate fee for the Pumped Zone z June 7, 2018 Regular Board Meeting Agenda Packet- Page 117 of 446 Page 35 of 36 ENVIRONMENTAL AND DEVELOPMENT- RELATED FEES AND CHARGES Designed to cover Central San's costs for providing these services Annual adjustment for changes in salaries, benefits, overhead, and mileage Most increases between 0.8% and 2.9% Results in $18,000 to $68,000 in additional revenue if approved I; PUBLIC OUTREACH Public Hearing notices posted and published Outreach packets with both fee reports mailed to over 400 stakeholders including the Building Industry Association, developers, engineers, contractors and waste haulers No comments received from stakeholders 3 June 7, 2018 Regular Board Meeting Agenda Packet- Page 118 of 446 Page 36 of 36 QUESTIONS, COMMENTS AND DISCUSSION 1 4 June 7, 2018 Regular Board Meeting Agenda Packet- Page 119 of 446