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HomeMy WebLinkAbout05.a.2) Public hearing re Capacity Fees, Rates and 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 APRIL 18, 2013 Request Staff Report Hearing A. Open Hearing. B. Receive comments, if any. C. Close Hearing. III. Discussion IV. Recommended Actions: A. Adopt the proposed ordinance including the following findings (four affirmative votes are required for adoption): 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: April 18, 2013 Subject. CONDUCT A PUBLIC HEARING TO RECEIVE COMMENTS AND CONSIDER AN UNCODIFIED ORDINANCE TO REPLACE THE "SCHEDULE OF CAPACITY FEES, RATES AND CHARGES" ADOPTED PURSUANT TO ORDINANCE 272 IN ACCORDANCE WITH DISTRICT CODE CHAPTER 6.12 Submitted By. Initiating Dept /Div.: Earlene Millier, Engineering Assistant III Engineering /Environmental Services REVIEWED AND RECOMMENDED FOR BOARD ACTION: T. Brightbill — Senior Engineer D. Gemmell — Environmental Services Division Mgr. K. Alm Counsel for the District C. Swanson Provisional 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 272 in accordance with District Code Chapter 6.12. FINANCIAL IMPACTS: If the recommended fees are adopted, staff estimates that approximately $88,500 in additional capacity fee revenue would be generated by the fee increases in fiscal year 2013 -14, based on its projection of 350 Residential Unit Equivalents [RUE] to be connected in the gravity zone and 450 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 $1.7 billion) is many times the value of future facilities expansion needed to accommodate future customers. Stated differently, most of the facilities needed to C:\ Users \dandersonWppData \Local \Microsoft \Windows \Temporary Internet Files \Content.Outlook \DVCG8C5G \PP Conduct PH - Capacity Fees 4 -18 -13 Final.doc Page 1 of 3 POSITION PAPER Board Meeting Date: April 18, 2013 subject: CONDUCT A PUBLIC HEARING TO RECEIVE COMMENTS AND CONSIDER AN UNCODIFIED ORDINANCE TO REPLACE THE "SCHEDULE OF CAPACITY FEES, RATES AND CHARGES" ADOPTED PURSUANT TO ORDINANCE 272 IN ACCORDANCE WITH DISTRICT CODE CHAPTER 6.12 serve new customers have already been built and paid for by current 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. A recommended ordinance to establish the following proposed Capacity Fees is attached: Fee Category Current Proposed % Change Gravity Service $5,797 per RUE $5,930 per RUE 2.3% Pumping Service $7,422 per RUE $7,517 per RUE 1.3% 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 249 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. Staff also scheduled a meeting on April 16, 2013 at 10:00 am to provide an opportunity for the customers to discuss the proposed fees, rates and charges. 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 19, 2013 meeting and recommended setting the public hearing date. Staff will discuss the results of the outreach program and the proposed fees, rates and charges with the committee at its April 16, 2013 meeting. RECOMMENDED BOARD ACTION: Conduct a public hearing to receive comments and consider adopting a proposed ordinance to establish a new uncodified "Schedule of Capacity Fees, Rates and Charges." Four affirmative votes are required for adoption. C:\ Users \danderson\AppData \Local \Microsoft \Windows \Temporary Internet Files \Content.Outlook \DVCG8C5G \PP Conduct PH - Capacity Fees 4 -18 -13 Final.doc Page 2 of 3 POSITION PAPER Board Meeting Date: April 18, 2013 subject: CONDUCT A PUBLIC HEARING TO RECEIVE COMMENTS AND CONSIDER AN UNCODIFIED ORDINANCE TO REPLACE THE "SCHEDULE OF CAPACITY FEES, RATES AND CHARGES" ADOPTED PURSUANT TO ORDINANCE 272 IN ACCORDANCE WITH DISTRICT CODE CHAPTER 6.12 Adopt the proposed ordinance including the following findings: 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). Attached Supporting Documents: 1. Proposed Ordinance, including Exhibit A: Schedule of Capacity Fees, Rates, and Charges (Uncodified) C:\ Users \danderson\AppData \Local \Microsoft \Windows \Temporary Internet Files \Content.Outlook \DVCG8C5G \PP Conduct PH - Capacity Fees 4 -18 -13 Final.doc Page 3 of 3 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 (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 an 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 Years 2013 -14 Capital Improvement Budget and Capital Improvement Plan, and the Staff Report on Proposed Capacity Fee Program dated April 2013; 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 April 18, 2013, 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: 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. Ordinance No. , Page 2 of 3 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 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 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. 272 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. 272 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. Ordinance No. Page 3 of 3 Section 3 This Ordinance shall be a general regulation of the District and shall be published once in the Contra Costa Times, a newspaper of general circulation within the District, and shall be effective on July 1, 2013. PASSED AND ADOPTED this 18th day of April 2013, 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: Elaine R. Boehme, CIVIC 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 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 April 18, 2013. 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, 2013 in accordance with the provisions of CCCSD Code Chapter 6.12. Gravity Capacity Fee $5,797 � RUE" $5,930 / RUE* Pumping Capacity Fee $1,625 5 / R LE $1,587 / RUE *A residential unit equivalent (RUE) is a measure of sewage volume and strength equivalent to a typical residential household. LGravity Zone Fee Zone 1 Use U Gravity Capacity Fee Pumped Zone Fee (Zone 2 ) Gravity P Gravity Capacity Fee + Pumping Capacity Fee Residential Unit Equivalence (RUE) Factors(') Number of RUE = Unit of Measure County Multiplied by the RUE Factor Use U User Group M Unit of F Gravity P Pumping C Eligible for LU S Single-family residences D Dwelling Unit 1 1.000 1 1.000 LA M Multiple- family residences, apartments D Dwelling Unit 1 1.000 1 1.000 LM M Mobile homes D Dwelling Unit 1 1.000 1 1.000 LC C Common areas 1 1,000 s . ft. 0 0.200 0 0.200 AB A Auto body/painting 1 1,000 s . ft. 0 0.432 0 0.467 AD A Auto dealerships 1 1,000 s . ft. 0 0.432 0 0.467 AL A Aircraft services 1 1,000 s . ft. 0 0.432 0 0.467 AR A Auto repair/maintenance 1 1,000 s . ft. 0 0.432 0 0.467 AS S Service stations 1 1,000 s . ft. 0 0.432 0 0.467 BT T Transportation services 1 1,000 s . ft. 0 0.432 0 0.467 AC C Car washes 1 1,000 s . ft. 2 21.127 2 22.829 AW r Car washes with 1,000 s . ft. 3 3.522 3 3.805 BB p Barbers /beauty salons / 1,000 s . ft. 0 0.725 0 0.783 BC D Dry cleaners, no laundry 1 1,000 s . ft. 0 0.259 0 0.279 BR R Retail sales 1 1,000 s . ft. 0 0.259 0 0.279 BE s Equipment repair/ repair 1,000 s . ft. 0 0.228 0 0.247 s o ultl use bulldings 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. C:\ Users \danderson\AppData \Local \Microsoft \Windows \Temporary Internet Files \Content.Outlook \DVCG8C5G \Capacity Fees Ord Exhibit A Rev w- Strikeout 4 -18 -13 Draft.doc 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(2) 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 s . ft. 0.228 0.247 IL Light industrial 1,000 s . ft. 0.228 0.247 BH Meeting halls / studios 1,000 s . ft. 0.290 0.313 EA Auditoriums / theaters 1,000 s . ft. 0.290 0.313 EC Cinemas 1,000 s . ft. 0.290 0.313 EM Entertainment 1,000 s . ft. 0.290 0.313 EB Bowling alleys 1,000 s . ft. 0.311 0.336 BZ Miscellaneous commercial 1,000 sq. ft. 0.510 0.551 EG Golf courses / country clubs 1,000 s . ft. 1.166 1.391 EH Health clubs / spas 1,000 s . ft. 1.166 1.391 ET Tennis clubs 1,000 s . ft. 1.166 1.391 IW Warehouses 1,000 s . ft. 0.136 0.147 BM Markets 1,000 s . ft. 0.556 0.601 BS Supermarkets 1,000 s . ft. 0.556 0.601 BX Shopping centers 1,000 s . ft. 1.057 1.142 OB Business offices 1,000 s . ft. 0.295 0.319 OF Financial institutions/ banks 1,000 s . ft. 0.295 0.319 OG Government offices 1,000 s . ft. 0.295 0.319 OS Fraternal / service offices 1,000 s . ft. 0.295 0.319 OM Medical offices 1,000 s . ft. 0.637 0.688 OV Veterinary clinics 1,000 s . ft. 0.637 0.688 RB Bakeries retail 1,000 s . ft. 4.061 2.178 RD Delicatessens 1,000 s . ft. 1.166 1.294 RN Bars 1,000 s . ft. 1.166 1.294 RI Ice cream parlors 1,000 s . ft. 1.166 1.294 RY Yogurt shops 1,000 s . ft. 1.166 1.294 RS Restaurants dine -in 1,000 s . ft. 4.010 2.738 RT Restaurants take -out 1,000 s . ft. 4.010 2.738 RC Banquet facilities / patio seating 1,000 s . ft. 1.166 0.825 BL Laundromats 1,000 s . ft. 13.506 14.594 SF Skilled nursing facilities 1,000 s . ft. 2.216 2.347 FE Residential care facilities for the elderly 1,000 s . ft. 0.932 0.987 HP Hospitals 1,000 s . ft. 2.891 3.124 LH Hotels / motels 1,000 s . ft. 1.166 1.272 CH Churches 1,000 s . 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. C:\ Users \danderson\AppData \Local \Microsoft \Windows \Temporary Internet Files \Content.Outlook \DVCG8C5G \Capacity Fees Ord Exhibit A Rev w- Strikeout 4 -18 -13 Draft.doc 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. C:\ Users \danderson\AppData \Local \Microsoft \Windows \Temporary Internet Files \Content.Outlook \DVCG8C5G \Capacity Fees Ord Exhibit A Rev w- Strikeout 4 -18 -13 Draft.doc Page 3 of 5 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 / 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 m /I TSSRU = 215 m /I A = 0.69 B = 0.14 C = 0.17 C:\ Users \danderson\AppData \Local \Microsoft \Windows \Temporary Internet Files \Content.Outlook \DVCG8C5G \Capacity Fees Ord Exhibit A Rev w- Strikeout 4 -18 -13 Draft.doc 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. C:\ Users \danderson\AppData \Local \Microsoft \Windows \Temporary Internet Files \Content.Outlook \DVCG8C5G \Capacity Fees Ord Exhibit A Rev w- Strikeout 4 -18 -13 Draft.doc Page 5 of 5 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 $ 935.99 $-5.04 $1,015.63 $ 5.47 AW Car washes with recycling 1.166 3.805 $ 110.48 $-3.57 $ 119.88 $ 3.87 BL Laundromats 1.166 14.594 $-x.63 $ 4.88 $ 627.87 $ 5.29 HP Hospitals 1.166 3.124 $-- 80.83 $-3.18 $ 87.77 $ 3.45 RB Bakeries (retail) 1.166 2.178 $-135.75 $-7-.66 $ 147.30 $ 8.32 RS Restaurants (dine -in) 1.166 2.738 $- X33.36 $5.99 $ 144.70 $ 6.50 RT Restaurants (paper 1.166 2.738 $- i33.36 $-5.99 service / no dishwashers ) $ 144.70 $ 6.50 SF Skilled nursing facilities 1.166 2.347 $ 49.24 $-Z?53 $ 53.42 $ 2.74 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. C:\ Users \danderson\AppData \Local \Microsoft \Windows \Temporary Internet Files \Content.Outlook \DVCG8C5G \Capacity Fees Ord Exhibit A Rev w- Strikeout 4 -18 -13 Draft.doc Page 5 of 5