HomeMy WebLinkAbout05.a.1) and 05.a.2) (Handout)S.a.2.)
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Item Nos. 5.a.1 & 5.a.2
Capacity, Environmental &
Development - Related
Fees, Rates & Charges
Public Hearing
April 19, 2012
Tom Godsey
Senior Engineer
Central Contra Costa Sanitary District
Schedule for Updating Capacity Fees and
Development - Related Fees & Charges
- Set Public Hearing Date --------- - - - - -- March 15 , 2012
- Customer Outreach -- - - - - -- March 15 to April 19, 2012
- Conduct Public Hearing - - --
- Fees & Charges Effective -- - - - - --
- -- April 19, 2012
- - - -- July 2, 2012
Customer Outreach
• Legal Notices published and posted.
• 250 Letter Reports to Interested Customers:
— Home Builders Association
— Applicants, Developers, Engineers, Business Owners and
Contractors
— Letter Reports handed out at Permit Counter
— No letters, e-mail messages or phone calls received
• Informal Meeting for Customers
— Tuesday - April 10, 2012 at 2 pm
No customers attended
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Capacity Fees
• This one -time "buy -in" fee is charged at time of
connection and is used for capital facility needs.
• Annual Capacity Fee revenue has varied between
15 -45% of total Sewer Construction Fund revenue
since it is dependent on rate of development.
• Capacity Fees are adjusted annually to avoid larger
increases that would be likely for multi -year
adjustments.
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Capacity Fee Approach
• "Buy -in" calculation:
Value of Assets
---------------- - - - - -- = Capacity Fee
Number of RUE
Recommended Capacity Fees
Current Proposed %
(per RUE) (per RUE) Change
• Gravity Zone: $5,465 $5,797 +6.1%
• Pumped Zone: $7,071 $7,422 +5.0%
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Additional Revenue Potential
• 2012 -13 (assuming 800 new units)
Additional from
Fee Increase TOTAL
— Gravity Zone $ 149,400 $2,608,650
(450 units)
— Pumped Zone $ 122,850 $2,597,700
(350 units)
Total: $ 272,250 $5,206,350
Comparison of Capacity Fees
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C it Fee
Dublin San Ramon Services District
515,813
Mountain View Sanitary District
$0.745
Antioch (Do to Diablo Sanitation Disbict for Treatment Only)
S7,901
Proposed CCCSD Pumped Zone
$7,422
Current CCCSD Pumped Zone
$7,071
Proposed CCCSD Gravity Zone
$5,797
Current CCCSD Gravity Zan
55,465
Concord
S4,910
Pittsburg (De to b'o Sanitation District for Treatment Only)
$4,358
Bay Poi
53,040
t County Wastewater District
52,762
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Comparison of Capacity Fees
Agency
Dublin San Ramon Services District
Mountain View Sanitary District
Pittsburg (Delta Diablo Sanitation District for Treatment Only) (was $ 4,358
@ 4/19 Board Meeting)
Proposed CCCSD Pumped Zone
Antioch (Delta Diablo Sanitation District for Treatment Only) (was $ 7,901
@ 4/19 Board Meeting)
Current CCCSD Pumped Zone
Proposed CCCSD Gravity Zone
Current CCCSD Gravity Zone
Concord
Bay Point
West County Wastewater District
Capacity Fee
$15,913
$8,745
$8,473
$7,422
$7,199
$7,071
$5,797
$5,465
$4,910
$3,940
$2,762
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CI-07---
Environmental Services and
Development - Related Rates & Charges
• Annual adjustment for changes in level of effort,
salaries, benefits and overhead to accomplish full
cost recovery.
• 64 fees would increase from 1.5% to 12.9 %.
• +7.7% change in chargeable labor costs due to
increase overhead rate driven by benefit costs.
• Additional revenue from increased fees would be
<$100,000.
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Recommendation
• Adopt ordinances including the finding
listed in the Position Papers and in the text
of the ordinances.
Questions ... ?
Findings
General
• The District incurs substantial costs to provide
environmental and development - related
services and have made a substantial
investment in assets that will benefit new
users.
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Findings
General
• There is a strong and reasonable relationship
between the actual added burden /District
costs and the proposed fees, rates and
charges.
• The proposed fees, rates and charges are
exempt from the California Environmental
Quality Act (CEQA).
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Findings
Capacity Fees
• New users generate an added burden on
services and facilities.
• To maintain an adequate level of service,
maintenance of existing capacity, and
construction of new capacity in the future is
necessary.
• The purpose of the Capacity Fee Program is
to equalize the investment in assets between
current and new users ensuring that new
users pay their fair share for capacity.
Findings
Capacity Fees
• Current fund balances and Capacity Fee
revenue will be allocated to:
— Life -cycle replacement, renovation, upgrading and
improvements to maintain existing capacity.
— Addition and expansion of facilities when needed
or required to meet legal and regulatory
requirements.
— Equitable adjustment of contributions between
current, new and contractual users.
Findings
Capacity Fees
• Current fund balances and Capacity Fee
revenue will be allocated to:
— Fund the new user's share of the:
• Sewer Construction Fund
• Running Expense Fund
• Debt Service Fund
• Self Insurance Fund
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