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HomeMy WebLinkAbout03.i. Set public hearing to amend Schedule of Capacity FeesBoard Meeting Date: May 1 2014 Subject: ESTABLISH JUNE 5, 2014 AT 2:OOPM AS THE DATE AND TIME FOR A PUBLIC HEARING REGARDING A PROPOSED ORDINANCE TO AMEND THE SCHEDULE OF CAPACITY FEES Submitted By: Thomas Brightbill, Senior Engineer Initiating Dept. /Div.: Engineering /Environmental Services REVIEWED AND RECOMMENDED FOR BOARD ACTION: D. Gemmell — Environmental Services Division Mgr. Kent Alm Roger S. Bailey Counsel for the District General Manager ISSUE: District Code requires that a public hearing be held prior to the Board of Directors' consideration of amendments to the Schedule of Capacity Fees. RECOMMENDATION: Establish June 5, 2014 at 2:00pm as the date and time for a public hearing to receive comments on and consider adoption of a proposed ordinance to amend the Schedule of Capacity Fees. FINANCIAL IMPACTS: None by this action. If the staff recommendation to revise capacity fees is adopted by the Board of Directors following the public hearing, staff estimates that approximately $61,175 in additional revenue would be raised in 2014 -15, based on the projection that 505 residential unit equivalents (RUE) will connect in the gravity zone and 450 RUE in the pumped zone. ALTERNATIVES /CONSIDERATIONS: The Board of Directors may decline to establish the recommended public hearing date or may elect to choose a different date, however, a public hearing must be held if capacity fees are to be increased. If the hearing is held on June 5, 2014, the increased fees could take effect on July 1, 2014. BACKGROUND: Staff has completed its annual review of the District's Capacity Fee Program and has concluded that it would be appropriate to revise the fees to account for changes in the valuation of District assets and the number of current customers. The effect of implementing the staff recommendation would be to change capacity fees as follows: Fee Category Current Proposed % Change Gravity Zone Fee $5,930 per RUE $5,995 per RUE 1.0% Pumping Zone Fee $7,517 per RUE $7,580 per RUE 1.0% C:\ Users \danderson\AppData \Local \Microsoft \Windows \Temporary Internet Files \Content.Outlook \DVCG8C5G \PP set PH Cap Fees 5 -1 -14 Final.doc Page 1 of 2 POSITION PAPER Board Meeting Date: May 1, 2014 Subject: ESTABLISH JUNE 5, 2014 AT 2:OOPM AS THE DATE AND TIME FOR A PUBLIC HEARING REGARDING A PROPOSED ORDINANCE TO AMEND THE SCHEDULE OF CAPACITY FEES Staff also proposes to conduct a public hearing on a related recommendation to revise the Schedule of Environmental and Development - Related Rates and Charges at the same Board meeting (June 5, 2014). A coordinated outreach program to inform and solicit input from interested customers (including the Building Industry Association of the Bay Area) regarding both the proposed capacity fees and the proposed environmental and development - related rates and charges will be conducted by staff before the public hearing date. An outreach meeting for interested parties is scheduled for April 29, 2014. COMMITTEE RECOMMENDATION: The Finance Committee reviewed staff's proposal for Capacity Fees at its February 24, 2014 meeting. The committee recommends that the Board conduct public hearings and approve the revisions. RECOMMENDED BOARD ACTION: Establish June 5, 2014 at 2:00pm as the date and time for a public hearing to receive comments on and consider adoption of a proposed ordinance to amend the Schedule of Capacity Fees. C:\ Users \danderson\AppData \Local \Microsoft \Windows \Temporary Internet Files \Content.Outlook \DVCG8C5G \PP set PH Cap Fees 5 -1 -14 Final.doc Page 2 of 2