HomeMy WebLinkAbout04.a.2) Public Hrg.-Ordinance re Schedule of Capacity Fees, Rates & ChargesCENTRAL CONTRA COSTA SANITARY DISTRICT
PUBLIC HEARING TO RECEIVE COMMENTS AND CONSIDER
A PROPOSED ORDINANCE TO ADOPT AN UNCODIFIED
"SCHEDULE OF CAPACITY FEES, RATES AND CHARGES"
SUGGESTED AGENDA
MAY 5, 2011
I. Request Staff Report
II. Hearing
A. Open Hearing.
B. Receive comments, if any.
C. Close Hearing.
III. Discussion
IV. Recommended Actions:
=I)
A. Adopt the proposed ordinance including the following findings (four affirmative votes
are required for adoption):
1. The District has made a substantial investment in assets that will benefit new
users.
2. For the District 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.
3. The purpose of the Capacity Fee Program is to equalize the investment in
District 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 District 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- assets of the District 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).
Central Contra Costa Sanitary District
' BOARD OF DIRECTORS
POSITION PAPER
Board Meeting Date: May 5, 2011
Subject: CONDUCT A PUBLIC HEARING TO RECEIVE COMMENTS AND
CONSIDER AN UNCODIFIED ORDINANCE REPLACING THE "SCHEDULE OF
CAPACITY FEES, RATES AND CHARGES" ADOPTED PURSUANT TO
ORDINANCE 258 IN ACCORDANCE WITH DISTRICT CODE CHAPTER 6.12
Submitted By: Initiating Dept. /Div.:
Jarred Miyamoto - Mills, Principal Engineer Engineering /Environmental Services
REVIEWED AND RECOMMENDED FOR BOARD ACTION:
`, I
cob X, 4we—,
J. Miyamoto -Mills C. Swanson A. Farre K. Alm a es
General Manager
ISSUE: District Code Chapter 6.12 requires that a public hearing be held prior to the
Board of Directors' consideration of an ordinance to adopt an uncodified "Schedule of
Capacity Fees, Rates and Charges."
RECOMMENDATION: Conduct the public hearing. Adopt an ordinance replacing the
uncodified "Schedule of Capacity Fees, Rates and Charges" adopted pursuant to
Ordinance 258 in accordance with District Code Chapter 6.12.
FINANCIAL IMPACTS: Staff estimates that the recommended fees would generate
little additional revenue because higher revenue generated in the gravity zone will be
nearly equal to the reduction in revenue in the pumped zone (based on staff's estimate
of 450 Residential Unit Equivalents [RUE] to be connected in the gravity zone and 350
RUE in the pumped zone.)
BACKGROUND: In September 1998, the state enacted SB1760 that requires sewer
connection fees to be based on one of two methods: 1) a buy -in to existing assets, or 2)
the cost of future facilities expansion. This bill was enthusiastically endorsed and
supported by home builders' associations statewide.
In 2001, Central Contra Costa Sanitary District's (CCCSD) method for determination of
Capacity Fees was changed to a "buy -in -to -all assets" approach. This was done to
provide a rational, practical, equitable and defensible method to calculate the financial
burden of new connections.
The buy -in -to -all- assets approach is preferred primarily due to the "facilities- mature"
status of CCCSD. In this context, facilities- mature means that the value of existing
assets (about $1.64 billion) is many times the value of future facilities expansion
needed to accommodate future customers. Stated differently, most of the facilities
needed to serve new customers have already been built and paid for by current
N: \ENVRSEC \Position Papers \Miyamoto- Mills\2011 \5 -5 -11 Meeting \PP Con Hearing re Cap Fees & Adopt Ordin FINAL 05 -05 -2011
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POSITION PAPER
Board Meeting Date: May 5, 2011
Subject: CONDUCT A PUBLIC HEARING TO RECEIVE COMMENTS AND
CONSIDER AN UNCODIFIED ORDINANCE REPLACING THE "SCHEDULE OF
CAPACITY FEES, RATES AND CHARGES" ADOPTED PURSUANT TO
ORDINANCE 258 IN ACCORDANCE WITH DISTRICT CODE CHAPTER 6.12
customers. As a consequence, most of the work envisioned in CCCSD's Capital
Improvement Plan is for renovation, replacement or upgrading of facilities to maintain
capacity for both current and prospective customers. Charging a Capacity Fee based
on the customer buying -in -to -all- assets at the time of connection to the public sewer
system equalizes the unit investment of each customer as they move from being a
"future" to "current" customer.
The proposed Capacity Fees are:
Fee Category Current Proposed % Change
Gravity Service $5,451 per RUE $5,465 per RUE 0.3%
Pumping Service $7,092 per RUE $7,071 per RUE -0.3%
It is notable that the recommended Capacity Fee for pumping service is less than the
current fee due to investments in pumping station capital improvements over the past
few years being lower than in the immediate prior years. That is, the amount of
pumping station facilities' depreciation over the past few years has slightly exceeded
the amount of new capital improvements to the stations.
Staff conducted a coordinated outreach program to inform and solicit input from
interested customers regarding the proposed Capacity Fees. Notices of the public
hearing were posted and published in the Contra Costa and San Ramon Valley Times.
In addition, over 182 letter reports including the proposed schedule of Capacity Fees
were distributed to developers, engineers, architects, contractors, and representatives
of the Home Builders' Association of Northern California, the Engineering and Utilities
Contractors' Association, the Associated Building Contractors Golden Gate Chapter,
and others who have requested notice of fee increase proposals. This effort to invite
public comment was pursued to encourage affected customers to provide input during
the rate - setting process. Comments submitted by the public during the review period
will be presented to the Board of Directors at the public hearing.
The Budget and Finance Committee reviewed the proposals at its February 28, 2011
meeting and recommends approval.
N: \ENVRSEC \Position Papers \Miyamoto- Mills\2011\5 -5 -11 Meeting \PP Con Hearing re Cap Fees & Adopt Ordin FINAL 05 -05 -2011
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POSITION PAPER
Board Meeting Date: May 5, 2011
Subject: CONDUCT A PUBLIC HEARING TO RECEIVE COMMENTS AND
CONSIDER AN UNCODIFIED ORDINANCE REPLACING THE "SCHEDULE OF
CAPACITY FEES, RATES AND CHARGES" ADOPTED PURSUANT TO
ORDINANCE 258 IN ACCORDANCE WITH DISTRICT CODE CHAPTER 6.12
RECOMMENDED BOARD ACTION: Conduct a public hearing to receive comments
regarding a proposed ordinance to adopt an uncodified "Schedule of Capacity Fees,
Rates and Charges." Four affirmative votes are required for adoption.
Adopt the proposed ordinance including the following findings:
The District has made a substantial investment in assets that will benefit new
users.
2. For the District 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.
3. The purpose of the Capacity Fee Program is to equalize the investment in
District 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 District 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- assets of the District 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).
N: \ENVRSEC \Position Papers \Miyamoto -Mills \2011 \5 -5 -11 Meeting \PP Con Hearing re Cap Fees & Adopt Ordin FINAL 05 -05 -2011
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ORDINANCE NO. 265
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
(District) finds that substantial study has been conducted regarding the impacts of
planned future development within the District's service area on existing District
services and facilities, along with an analysis of new, improved, or expanded District
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 and estimated cost of District services and facilities occasioned by this added
burden; and
WHEREAS, these studies were undertaken by District staff and culminated in
documents that are part of the public record, to wit: the draft Fiscal Year 2011 -12
Capital Improvement Budget and Capital Improvement Plan, and the Staff Report on
Proposed Capacity Fee Program dated April 2011; and
WHEREAS, it is reasonable and necessary that all users of the District'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 District services and
facilities; and
WHEREAS, a properly noticed public hearing regarding the proposed Capacity Fee
Program revisions was held on May 5, 2011, 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 the
District to implement the proposed uncodified Schedule of Capacity Fees, Rates and
Charges; and
WHEREAS, the Board finds as follows:
The District has made a substantial investment in assets that will benefit new
users.
2. For the District 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.
Ordinance No. 265
Page 2 of 3
3. The purpose of the Capacity Fee Program is to equalize the investment in District
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 District 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- assets of the District 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).
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. 258 shall remain in effect and such
Ordinance No. 265
Page 3 of 3
rates and charges due thereunder for any categories of users shall remain due and
payable as if those portions of Ordinance No. 258 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
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 the District and shall be published once
in the Contra Costa Times and San Ramon Valley Times, newspapers of general
circulation within the District, and shall be effective on July 5, 2011.
PASSED AND ADOPTED by the Board of Directors of the Central Contra Costa
Sanitary District on the 5t" day of May 2011, by the following vote:
AYES:
Members:
NOES:
Members:
ABSENT:
Members:
Barbara D. Hockett
President of the Board of Directors
Central Contra Costa Sanitary District
County of Contra Costa, State of California
COUNTERSIGNED:
Elaine R. Boehme, CMC
Secretary of the Central Contra Costa Sanitary District
County of Contra Costa, State of California
Approved as to form:
Kenton L. Alm, Esq.
Counsel for the District
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. 265 adopted May 5, 2011. 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 5, 2011 in accordance with the provisions
of CCCSD Code Chapter 6.12.
Gravit
Capacity Fee
$5,465 / RUE*
Pumping Capacity Fee
$1,606 / 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) Factors(')
Number of RUE = Unit of Measure County Multiplied by the RUE Factor
Use
Code
User Group
Unit of
Measure ('° 2)
Gravity
Capacity
Fee RUE
Factor
Pumping
Capacity
Fee RUE
Factor
Eligible for
Capacity
Use Charge
Program
(* =Yes)
LU
Single-family residences
Dwelling Unit
1.000
1.000
LA
Multiple - family
residences, apartments
Dwelling Unit
1.000
1.000
LM
Mobile homes
Dwelling Unit
1.000
1.000
LC
Common areas
1,000 sq. ft.
0.200
0.200
AB
Auto body/painting
1,000 sq. ft.
0.432
0.467
AD
Auto dealerships
1,000 sq. ft.
0.432
0.467
AL
Aircraft services
1,000 sq. ft.
0.432
0.467
AR
Auto repair/maintenance
1,000 sq. ft.
0.432
0.467
AS
Service stations
1,000 sq. ft.
0.432
0.467
BT
Transportation services
1,000 sq. ft.
0.432
0.467
AC
Car washes
1,000 sq. ft.
21.127
22.829
AW
Car washes with
recycling
1,000 sq. ft.
3.522
3.805
BB
Barbers /beauty salons /
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
BE
Equipment repair / repair
services
1,000 sq. ft.
0.228
0.247
(1) Fees for multi -use buildings shall be determined by considering each use separately.
(2) "Unit -o- 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.
Page 1 of 5
SCHEDULE OF CAPACITY FEES, RATES AND CHARGES - CONTINUED
Residential Unit Equivalence (RUE) Factors())
Number of RUE = Unit of Measure County Multiplied by the RUE Factor
Use
Code
User Group
Unit of
Measure(Z)
Gravity
Capacity
Fee RUE
Factor
Pumping
Capacity
Fee RUE
Factor
Eligible for
Capacity
Use Charge
Program
(* =Yes)
BK
Contractors / business
services
1,000 s . 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.
0.556
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
RB
Bakeries (retail)
1,000 sq. ft.
4.061
2.178
RD
Delicatessens
1,000 sq. ft.
1.166
1.294
RN
Bars
1,000 sq. ft.
1.166
1.294
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
RT
Restaurants take -out
1,000 sq. ft.
4.010
2.738
RC
Banquet facilities / patio
seating
1,000 sq. ft.
1.166
0.825
BL
Laundromats
1,000 sq. ft.
13.506
14.594
SF
Skilled nursing facilities
1,000 sq. ft.
2.216
2.347
FE
Residential care facilities 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.
1.166
1.272
CH
Churches
1,000 sq. ft.
0.242
0.261
(1) Fees for multi -use buildings shall be determined by considering each use separately.
(2) "Unit -o- 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.
Exhibit A - Ordinance No. 265 Page 2 of 5
SCHEDULE OF CAPACITY FEES, RATES AND CHARGES - CONTINUED`
Residential Unit Equivalence (RUE) Factors(')
Number of RUE = Unit of Measure County Multiplied by the RUE Factor
Private Schools (SD, SE, SH, SI, SU)
Eligible for
Gravity
Pumping
Capacity
Capacity
Capacity
Use Charge
Use
Unit of
Fee RUE
Fee RUE
Program
Code
User Group
Measure (2)
Factor
Factor
(* =Yes)
Schools with cafeteria
and gym / 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 -o- 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.
Exhibit A - Ordinance No. 265 Page 3 of 5
SCHEDULE OF CAPACITY FEES, RATES AND CHARGES -- CONTI`NUED
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 / mortuaries
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
--
Special billings
--
Utilities
Values for use in the RUE formula in Section 6.12.050(D)(2) shall be:
FLORU
=
200 gpd
BODRU
=
200 mg /I
TSSRU
=
215 mg /I
A
=
0.69
B
=
0.14
C
=
0.17
Exhibit A - Ordinance No. 265 Page 4 of 5
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.
The annual interest rate for calculation of capacity use charges 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.
Exhibit A - Ordinance No. 265 Page 5 of 5
Capacity Charge
Capacity Use
"Initial Payment"
Charge Rates
Pumping
Gravity
Capacity
Current
Capacity Fee
Fee RUE
Year
RUE Factor
Factor
($ /Month
Use
(RUE /1,000
(RUE /1,000
1,000 Sq.
Annual
Code
User Group
Sq. Ft.)
Sq. Ft.)
Ft.)
($ /HCF)
AC
Car washes
1.166
22.829
$ 935.99
$ 5.04
AW
Car washes with recycling
1.166
3.805
$ 110.48
$ 3.57
BL
Laundromats
1.166
14.594
$ 578.63
$ 4.88
HP
Hospitals
1.166
3.124
$ 80.89
$ 3.18
RB
Bakeries (retail)
1.166
2.178
$ 135.75
$ 7.66
RS
Restaurants dine -in
1.166
2.738
$ 133.36
$ 5.99
RT
Restaurants (paper
1.166
2.738
$ 133.36
$ 5.99
service / no dishwashers
SF
Skilled nursing facilities
1.166
2.347
$ 49.24
$ 2.53
The annual interest rate for calculation of capacity use charges 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.
Exhibit A - Ordinance No. 265 Page 5 of 5