HomeMy WebLinkAbout12.a. PUBLIC HEARING: Ordinance establishing Sewer Service Charge Rates for FYs 2015-16 and 2016-17/).a.
Central Contra Costa Sanitary District
' BOARD OF DIRECTORS
POSITION PAPER
Board Meeting Date: June 4, 2015
Subject: CONDUCT A PUBLIC HEARING TO RECEIVE COMMENT AND
CONSIDER ADOPTING AN UNCODIFIED ORDINANCE ESTABLISHING
A SCHEDULE OF SEWER SERVICE CHARGE RATES IN
ACCORDANCE WITH DISTRICT CODE CHAPTER 6.24.030
Submitted By. Initiating Dept. /Div.:
Thea Vassallo, CPA, CMA Administration / Finance & Accounting
Finance Manager
REVIEWED AND RECOMMENDED FOR BOARD ACTION:
K. Alm Roger S. Bailey
Counsel for the District General Manager
ISSUE: An uncodified ordinance passed by four affirmative votes is needed to increase
the annual Sewer Service Charge (SSC). District Code and State law require that a
public hearing be held before such an ordinance may be adopted.
RECOMMENDATION: Conduct a public hearing and consider adopting an uncodified
ordinance establishing a Schedule of SSC rates, in accordance with District Code
Chapter 6.24.030. The proposed uncodified ordinance (ATTACHMENT 1) increases
the annual single family SSC rate by $32 per residential unit each year for the next two
fiscal years. This would raise the single family residential annual charge to $471 for
Fiscal Year (FY) 2015 -16 and to $503 for FY 2016 -17. Similarly, the multi - family
residential charge for apartments, condominiums, duplexes, second living units, or
mobile homes would increase $24 each year for the next two fiscal years. This would
raise the multi - family rate to $463 per unit for FY 2015 -16 and $487 for FY 2016 -17.
The proposed non - residential SSC rates are shown in the Wastewater Cost of Service
Study dated May 21, 2015, prepared by Raftelis Financial Consultants, Inc., and the
Proposition 218 notice mailed to property owners in April 2015.
FINANCIAL IMPACTS: The draft FY 2015 -16 Operations and Maintenance (O &M)
Budget was prepared using an assumption that a $32 single family and $24 multi - family
SSC rate increase will be approved by the Board. Approximately 89.7% of the SSC
revenue is allocated to the O &M Budget, and the remaining 10.3% is allocated to the
Capital Improvement Budget. The increased revenue under the proposed rate
structure would produce approximately $78.5 million in total revenue.
ALTERNATIVES /CONSIDERATIONS: The Board could consider keeping the SSC at
the current annual rate of $439, or it could choose to increase the SSC by another
amount.
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Establishing SSC rates for FYs 15 -16 and 16 -17 (6- 4- 15).doc
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POSITION PAPER
Board Meeting Date: June 4, 2015
Subject: CONDUCT A PUBLIC HEARING TO RECEIVE COMMENT AND
CONSIDER ADOPTING AN UNCODIFIED ORDINANCE ESTABLISHING A
SCHEDULE OF SEWER SERVICE CHARGE RATES IN ACCORDANCE
WITH DISTRICT CODE CHAPTER 6.24.030
BACKGROUND: Ordinance No. 278, adopted on June 20, 2013, increased the annual
residential SSC rate by $34 to $405 for FY 2013 -14, and by an additional $34 to $439
for FY 2014 -15. It also increased non - residential SSC rates in proportionally similar
amounts to the residential SSC rate. On April 17, 2014, the Board took no action to
change the previously- approved increase for FY 2014 -15, and the $34 per residential
unit increase was put into effect on July 1, 2014.
On June 19, 2014, the Board awarded a contract to Raftelis Financial Consultants, Inc.,
to conduct a comprehensive Wastewater Cost of Service Study related to the SSC. The
purpose of the Wastewater Cost of Service Study is to assess the cost of providing
service to customer classes and to design rates to equitably recover these costs.
Throughout the study, six workshops, including two offsite sessions, were held with the
full Board, staff and the consultant. The study resulted in recommendations to create a
new multi - family SSC rate and several changes to non - residential SSC rates based on
the strength and flow characteristics of those user groups and the District's cost to
provide service to those groups. The Wastewater Cost of Service Study is
recommended for approval to the Board as Item 11.a. on the agenda.
The Board began deliberation on the rate increase at the November 17, 2014,
Wastewater Cost of Service Study Workshop. After review of the rate scenarios, the
Board continued its discussion at the January 20, 2015, Board Workshop and provided
input to staff. At the March 5, 2015, meeting, the Board accepted the draft Proposition
218 Notice but proposed changes to make the content of the notice consistent with the
rate increases in Scenario B of the Wastewater Cost of Service Study. The final
Proposition 218 Notice was approved by the Board on March 19, 2015, and mailed to
the District's ratepayers shortly thereafter. The draft FY 2015 -16 O &M Budget was
based on a $32 single family and $24 multi - family SSC rate increase as laid out in
Scenario B.
In order to facilitate maximum attendance by the public, the public hearing was set for
7:00 p.m. on June 4, 2015. Staff will present the most recent financial projections,
including the District's proposed budget assumptions, financial condition, projected
Capital Improvement and O &M costs, and other factors which are drivers of the
revenue requirements.
Legal notices were published on May 21 and May 28, 2015, in the Contra Costa Times
and the San Ramon Valley Times for this public hearing.
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Establishing SSC rates for FYs 15 -16 and 16 -17 (6- 4- 15).doc
POSITION PAPER
Board Meeting Date: June 4, 2015
subject: CONDUCT A PUBLIC HEARING TO RECEIVE COMMENT AND
CONSIDER ADOPTING AN UNCODIFIED ORDINANCE ESTABLISHING A
SCHEDULE OF SEWER SERVICE CHARGE RATES IN ACCORDANCE
WITH DISTRICT CODE CHAPTER 6.24.030
COMMITTEE RECOMMENDATION: This matter was not reviewed by a Board
Committee.
RECOMMENDED BOARD ACTION: Conduct a public hearing to receive comment
and consider adopting a proposed uncodified ordinance increasing the annual SSC for
residential and non - residential customers for FY 2015 -16 and FY 2016 -17 consistent
with the chart below:
FY 2015 -16 FY 2016 -17
Increase Annual SSC Increase Annual SSC
Single Family Residences $32 $471 $32 $503
Multi - Family Residences $24 $463 $24 $487
Effective Date July 1, 2015 July 1, 2016
(Residential rates shown in dollars per residential unit.)
Non - Residential As shown in the Proposition 218 Notice mailed to
property owners and the Wastewater Cost of Service
Study dated May 21, 2015, by Raftelis Financial
Consultants, Inc.
Upon conclusion of the public hearing:
Find that there was not a majority protest in opposition; and
2. Adopt the attached proposed uncodified ordinance. (Four affirmative votes are
required for adoption.)
Attached Supporting Document:
1. Proposed Ordinance
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ORDINANCE NO. A 15
AN UNCODIFIED ORDINANCE OF THE
CENTRAL CONTRA COSTA SANITARY DISTRICT
ADOPTING A SCHEDULE OF SEWER SERVICE CHARGE RATES
IN ACCORDANCE WITH DISTRICT CODE CHAPTER 6.24.030
WHEREAS, the Central Contra Costa Sanitary District (District) has previously
developed and instituted a Sewer Service Charge Program to finance the services and
facilities furnished by the District, 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, the District Board of Directors has reviewed the current Schedule of Sewer
Service Charge Rates and has determined that the annual residential sewer service
charge rate should be increased by $32 per single family living unit to $471, and $24
per multifamily living unit to $463 for Fiscal Year 2015 -2016, and $32 per single family
living unit to $503, and $24 per multifamily living unit to $487 for FY 2016 -17, and that
non - residential sewer service charge rates should be increased as determined by the
Cost -of- Service Study performed by Raftelis Financial Consultants, Inc. and set forth
below in Exhibit A; and
WHEREAS, Chapter 6.24.030 of the District Code provides the enabling authority for
the District to implement the proposed uncodified Schedule of Sewer Service Charge
Rates; and
WHEREAS, a properly noticed public hearing to receive comments and protests and to
consider the proposed uncodified Schedule of Sewer Service Charge Rates was held
on June 4, 2015; and
WHEREAS, in adopting this Ordinance, the Board of Directors finds that:
a. Written notices of the proposed increase in sewer service charge rates were
sent by first class U.S. mail to every owner of property connected in the
District at least 45 days prior to the Public Hearing on the proposed increase
conducted on June 4, 2015.
b. All written protests against the proposed increase in the sewer service charge
rates, including those provided in person, by facsimile, email and U.S. mail,
were considered and tallied at the Public Hearing conducted on June 4, 2015,
Ordinance No. ,2 $'S
Page 2 of 6
and the District was not presented with protests by a majority of the owners of
the identified parcels affected by this change.
c. The amount of the charge imposed does not exceed the proportional cost of
the service attributable to the properties receiving service and the charge is
only imposed on those properties actually receiving service or for those which
service is immediately available.
d. This action is categorically exempt from the California Environmental
Quality Act (CEQA) pursuant to Section 15273 (a) (1 -4) of the District CEQA
Guidelines.
NOW, THEREFORE, the Board of Directors of the District does ordain as follows:
Section 1 (To be Uncodified)
The "Schedule of Sewer Service Charge Rates" 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 6.24.030.
As of the effective date of this Ordinance, Sewer Service Charges 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, parts of ordinances and any provision of Resolution 2013 -278 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 Resolution 2013 -278 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 Resolution 2013 -278 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.
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Ordinance No.
Page 3 of 6
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, 2015. This ordinance
shall be kept on file with the Secretary of the District.
PASSED AND ADOPTED by the Board of Directors of the Central Contra Costa
Sanitary District on the 4nd day of June 2015, by the following vote:
AYES: Members:
NOES: Members:
ABSTAIN: Members:
Michael R. McGill, P.E.
President of the Board of Directors
Central Contra Costa Sanitary District
County of Contra Costa, State of California
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.
District Counsel
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Ordinance No. $ S
Page 4 of 6
EXHIBIT "A"
Schedule of Sewer Service Charge Rates (Uncodified)
This schedule of Sewer Service Charges (to be effective July 1, 2015), was established
by Central Contra Costa Sanitary District Ordinance No)15 adopted June 4, 2015.
User Group
Fiscal Year
2014 -15
Fiscal Year
2015 -16
Fiscal Year
2016 -17
Residential (rate per Residential Unit):
Single Family Dwellings, Mobile Homes
$439.00
$471.00
$503.00
Apartments, Condominiums, Duplexes, Second Living Units,
Mobile Homes
$439.00
$463.00
$487.00
Commercial / Non - Industrial (rates per hundred cubic feet):
Standard Commercial Rate for Users Not Listed Below
$4.07
$4.64
$4.98
Automotive
$4.07
$5.34
$5.73
Bakeries
$11.22
$12.33
$13.22
Hotels /Motels
$4.07
$8.06
$8.64
Supermarkets
$4.07
$8.71
$9.34
Mortuaries
$7.99
$10.70
$11.47
Restaurants
$8.32
$8.71
$9.34
Minimum Annual Charge
$456.00
$480.00
$504.00
Industrial (rates per unit specified):
Wastewater Flow (per hundred cubic feet)
$1.68
$3.42
$3.67
Biochemical Oxygen Demand (per 1,000 pounds)
$934.00
$1,134.00
$1,216.00
Suspended Solids (per 1,000 pounds)
$667.00
$529.00
$567.00
Minimum Annual Charge
$456.00
$480.00
$504.00
Special Discharge Permits & Contractual Agreements:
Determined
Individual)
Determined
Individual)
Determined
Individual)
Page 1
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Ordinance No. S�
Page 5 of 6
Schedule of Sewer Service Charge Rates (continued)
User Group
Fiscal Year
2014 -2015
Fiscal Year
1 2015 -2016
Fiscal Year
2016 -2017
Mixed Use (for parcels with shared water meter; rates per hundred cubic feet):
Rate Group XA: (90 -99% Standard Commercial; 1 -10% Restaurant)
$4.46
$4.96
$5.32
Rate Group XB: (80 -89% Standard Commercial; 11 -20% Restaurant)
$4.85
$5.38
$5.77
Rate Group XC: (70 -79% Standard Commercial; 21 -30% Restaurant)
$5.25
$5.81
$6.23
Rate Group XD: (60 -69% Standard Commercial; 31-40% Restaurant)
$5.64
$6.22
$6.67
Rate Group XE: (50 -59% Standard Commercial; 41 -50% Restaurant)
$6.03
$6.64
$7.12
Rate Group XF: (40 -49% Standard Commercial; 51 -60% Restaurant)
$6.42
$7.05
$7.56
Rate Group XG: (30 -39% Standard Commercial; 61 -70% Restaurant)
$6.81
$7.47
$8.01
Rate Group XH: (20 -29% Standard Commercial; 71 -80% Restaurant)
$7.21
$7.88
$8.45
Rate Group XI: (10 -19% Standard Commercial; 81 -90% Restaurant)
$7.60
$8.31
$8.91
Rate Group XJ: (31 -35% Standard Commercial; 65 -69% Bakery)
$8.72
$9.97
$10.69
Rate Group XK: (21 -30% Standard Commercial; 70 -79% Bakery)
$9.08
$9.62
$10.32
Rate Group XL: (16 -20% Standard Commercial; 80 -84% Bakery)
$9.79
$10.18
$10.92
Rate Group XM: (11 -15% Standard Commercial; 85 -89% Bakery)
$10.15
$10.50
$11.26
Rate Group XN: (5 -10% Standard Commercial; 90 -95% Bakery)
$10.51
$10.76
$11.54
Rate Group XO: (10 -15% Restaurant; 85 -90% Bakery)
$10.74
$10.90
$11.69
Minimum Annual Charge
$456.00
$480.00
$504
Page 2
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Ordinance No. 2 $57
Page 6 of 6
Schedule of Sewer Service Charge Rates (continued)
User Group
Fiscal Year
2014 -2015
Fiscal Year
1 2015 -2016
Fiscal Year
1 2016 -2017
Institutional (rates per hundred cubic feet unless otherwise noted):
Churches
$4.07
$4.64
$4.98
Schools (Daycare, Preschool, University)
$4.07
$4.64
4.98
Schools (Elementary)
$5.62 / per
student
$5.77 / per
student
$6.19 / per
student
Schools (Intermediate)
$5.94 / per
student
$11.34 / per
student
$12.16 / per
student
Schools (High School)
$6.27 / per
student
$16.93 / per
student
$18.15 / per
student
Fraternal & Service Organizations
$4.07
$4.64
$4.98
Local & State Institutions
$4.07
$4.64
$4.98
Other Tax Exempt (Except Federal)
$4.07
$4.64
$4.98
Federal Institutions
$4.07
$4.64
$4.98
Utilities with Special Tax Status
$4.07
$4.64
$4.98
Independent Living Facilities, Rest Homes, & Convalescent Hospitals
$4.07
$4.64
$4.98
Minimum Annual Charge
$456.00
$480.00
$504.00
Page 3
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