HomeMy WebLinkAbout06.c.2) Public hearing re Schedule of 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
JUNE 5, 2014
I. Request Staff Report
II. 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:
(P.C. 2)
1. The District has made a substantial investment in assets that will benefit new
users.
2. 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 and other assets.
3. There is a strong and reasonable relationship between the actual added burden
imposed by new users and the proposed Capacity Fee.
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. 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.
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: June 5, 2014
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 277 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 : /7
s l
T. Brightbill — Senior Engineer
D. Gemmell — Environmental Services Division Manager K. Alm Roger S. Bailey
Counsel for the District 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 277 in accordance with District Code Chapter 6.12.
FINANCIAL IMPACTS: If the recommended fees are adopted, staff estimates that
approximately $61,175 in additional capacity fee revenue would be generated by the
fee increases in fiscal year 2014 -15, based on its projection of 505 Residential Unit
Equivalents (RUEs) to be connected in the gravity zone and 450 RUEs in the pumped
zone.
ALTERNATIVES /CONSIDERATIONS: The Board of Directors could choose to either
reschedule the public hearing or not increase the fee. Rescheduling the hearing would
affect the ability to enact the new rate by July 1. Not increasing the fee could raise an
equity issue for property owners with new connections after July 1, 2014.
BACKGROUND: The District charges a capacity fee when properties first connect to
the public sewer. Each year this fee is updated based on changes to the value of our
assets and the number of customers in the district. California Senate Bill 1760, enacted
in September 1998, defines capacity charges for water and sewer agencies in Section
66013 of the California Government Code. The equity buy -in method used by the
District conforms to the requirements contained in Section 66013.
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POSITION PAPER
Board Meeting Date: June 5, 2014
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 277 IN ACCORDANCE WITH DISTRICT
CODE CHAPTER 6.12
A copy of the draft Capacity Fee Update Report and an invitation to attend an
informational meeting on April 29, 2014 was mailed to 235 developers, contractors,
engineers, and permitted industrial users.
A recommended ordinance to establish the following proposed Capacity Fees is
attached:
Fee Category Current Proposed % Change
Gravity Zone Fee $5,930 per RUE $5,995 per RUE 1.0%
Pumped Zone Fee $7,517 per RUE $7,580 per RUE 1.0%
COMMITTEE RECOMMENDATION: The Finance Committee reviewed the draft
Capacity Fee Update Report at their February 24, 2014 meeting and recommended
approval by the full Board of Directors.
During discussion at the Finance Committee meeting it was noted that a review of the
capacity fee methodology and calculation has been included in the Comprehensive
Wastewater Cost of Service Study.
'RECOMMENDED BOARD ACTION: Conduct the public hearing. Adopt the proposed
ordinance including the following findings:
1. The District has made a substantial investment in assets that will benefit new
users.
2. 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 and other assets.
3. There is a strong and reasonable relationship between the actual added burden
imposed by new users and the proposed Capacity Fee.
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;
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POSITION PAPER
Board Meeting Date: June 5, 2014
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 277 IN ACCORDANCE WITH DISTRICT
CODE CHAPTER 6.12
• 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. 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.
6. The proposed fees, rates and charges are exempt from the California
Environmental Quality Act (CEQA).
Attached Supportinq Documents:
1. Proposed Ordinance, including Exhibit A: Schedule of Capacity Fees, Rates, and Charges (Uncodified)
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ORDINANCE NO. 191
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 Year 2014 -15
Capital Improvement Budget and Capital Improvement Plan, and the Staff Report on
Proposed Capacity Fee Program dated February 19, 2014; 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 June 5, 2014, 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
Central Contra Costa Sanitary District
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. 277 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. 277 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 No. A $)
Page 3 of 3
Central Contra Costa Sanitary District
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 1, 2014.
PASSED AND ADOPTED this 5th day of June 2014, by the Board of Directors of the
Central Contra Costa Sanitary District by the following vote:
AYES:
Members:
NOES:
Members:
ABSENT:
Members:
David R. Williams
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 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. 28l adopted June 5, 2014. 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, 2014 in accordance with the provisions
of District Code Chapter 6.12.
Gravit Capacity Fee
5 ,93^ %E*
$5,995 / RUE*
Pumping Capacity Fee
1 $1,587 / R6LE
1$1,585 / 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
Pumping
Capacity
Fee RUE
Factor
Fee
Pumped Zone Fee
Zone 2
=
Gravity
Capacity
Fee + Pumping Capacity Fee
Residential Unit Equivalence (RUE) Factors(')
Number of RUE = Unit of Measure Count Multiplied by the RUE Factor
Use
Code
User Group
Unit of
Measure (1° 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 s . ft.
0.200
0.200
AB
Auto body/painting
1,000 s . ft.
0.432
0.467
AD
Auto dealerships
1,000 s . ft.
0.432
0.467
AL
Aircraft services
1,000 s . ft.
0.432
0.467
AR
Auto repair/maintenance
1,000 s . ft.
0.432
0.467
AS
Service stations
1,000 s . ft.
0.432
0.467
BT
Transportation services
1,000 s . ft.
0.432
0.467
AC
Car washes
1,000 s . ft.
21.127
22.829
AW
Car washes with
recycling
1,000 s . ft.
3.522
3.805
BB
Barbers /beauty salons /
pet grooming
1,000 s . ft.
0.725
0.783
BC
Dry cleaners, no laundry
1,000 s . ft.
0.259
0.279
BR
Retail sales
1,000 s . ft.
0.259
0.279
BE
Equipment repair / repair
services
1,000 s . ft.
0.228
0.247
(1) Fees for multi -use buildings shall be determined by considering each use separately.
(2) "Unit -of- 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 w- Strikeout 6 -5 -14 Final.doc Page 1 of 5
SCHEDULE OF CAPACITY FEES, RATES AND CHARGES - CONTINUED
Residential Unit Equivalence (RUE) Factors(')
Number of RUE = Unit of Measure Count 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 -of- 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 w- Strikeout 6 -5 -14 Final.doc Page 2 of 5
SCHEDULE OF CAPACITY FEES, RATES AND CHARGES - CONTINUED
Residential Unit Equivalence (RUE) Factors(l)
Number of RUE = Unit of Measure Count 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 -of- 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 w- Strikeout 6 -5 -14 Final.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
--
Improve ents 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 w- Strikeout 6 -5 -14 Final.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 w- Strikeout 6 -5 -14 Final.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
$1,045.63
$-5.47
$1,026.76
$ 5.53
AW
Car washes with recycling
1.166
3.805
$1193
$-3.87
$ 121.19
$ 3.92
BL
Laundromats
1.166
14.594
$-627.87
$- 5.29
$ 634.75
$ 5.35
HP
Hospitals
1.166
3.124
$ 8777
$ 3.45
$ 88.73
$ 3.49
RB
Bakeries (retail)
1.166
2.178
$- X47.39
$-8 32
$ 148.91
$ 8.41
RS
Restaurants (dine -in)
1.166
2.738
$- X44.70
$ -6.59
$ 146.29
$ 6.57
RT
Restaurants (paper
1.166
2.738
$- X44.70
$- .59
service / no dishwashers )
$ 146.29
$ 6.57
SF
Skilled nursing facilities
1.166
2.347
$ 5342
$—`?74
$ 54.01
$ 2.77
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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