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
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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.
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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)
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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.
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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.
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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.
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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
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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.
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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.
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