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Home My WebLink About12.b. PUBLIC HEARING: Ordinance to enact Recycled Water Charges for FYs 2015-16 and 2016-17Central Contra Costa Sanitary District /2.6. ' BOARD OF DIRECTORS POSITION PAPER Board Meeting Date: June 4, 2015 Subject. CONDUCT A PUBLIC HEARING TO RECEIVE COMMENT AND CONSIDER AN UNCODIFIED ORDINANCE TO ENACT THE "SCHEDULE OF RECYCLED WATER CHARGES" ADOPTED IN ACCORDANCE WITH DISTRICT CODE CHAPTER 6.38 Submitted By. Initiating DeptJDiv.: Thomas Brightbill, Senior Engineer Engineering and Technical Services / Planning and Development Services REVIEWED AND RECOMMENDED FOR BOARD ACTION: D. Gemmell, Planning & Development Services Div. Mgr. 1 JM. Petit, Director of Engineering & Technical Services K. Alm Roger S. Bailey Counsel for the District General Manager ISSUE: State Law and District Code Chapter 6.38 require that a public hearing be held prior to the Board of Directors' consideration of an ordinance to adopt an uncodified "Schedule of Recycled Water Charges ". RECOMMENDATION: Conduct the public hearing. Adopt an ordinance replacing the uncodified "Schedule of Recycled Water Charges" adopted in accordance with District Code Chapter 6.38. FINANCIAL IMPACTS: The proposed charges are designed to recover the District's costs incurred in treating and distributing recycled water. BACKGROUND: Chapter 6.38 of the District Code includes provisions for the Board to adopt an uncodified schedule of rates and charges for recycled water and provides for annual increases of 3 %. Recent changes in the Government Code have expanded the requirements of Proposition 218 to include recycled water. Retail rates for recycled water were initially set lower than potable water rates to encourage use. District Code currently contains provisions for 3% annual adjustments. Historically, this adjustment has allowed the District to pass along some of the increased cost of treating and distributing recycled water while remaining below both the potable water rate and the cost of recycled water production and distribution. This year, staff and Raftelis Financial Consultants have reviewed the proposed 3% increases and determined that these increases result in rates that are still below the District's production and distribution costs. Only customers who currently receive recycled water from the District's recycled water distribution system are required to pay the recycled water charges. C:\ Users\ danderson \AppData \Local\Microsoft \Windows \Temporary Internet Files \Content.Outlook \DVCG8C5G \PP to Conduct PH ReW 6 -4 -15 imp comments.doc Page 1 of 2 POSITION PAPER Board Meeting Date: June 4, 2015 Subject., CONDUCT A PUBLIC HEARING TO RECEIVE COMMENT AND CONSIDER AN UNCODIFIED ORDINANCE TO REPLACE THE 'SCHEDULE OF RECYCLED WATERCHARGES" ADOPTED PURSUANT TO ORDINANCE 280 IN ACCORDANCE WITH DISTRICT CODE CHAPTER 6.38 Notices of the public hearing were mailed to property owners whose parcels are either currently or could reasonably be served by the District's recycled water pipelines. In addition, notices were posted and published in the Contra Costa and San Ramon Valley Times. RECOMMENDED BOARD ACTION: Conduct a public hearing to receive comment and consider adopting a proposed ordinance to establish a new uncodified "Schedule of Recycled Water Charges ". Upon conclusion of the public hearing, adopt the attached proposed uncodified ordinance, which includes the following findings: • The District incurs substantial costs to provide recycled water. • It is necessary to charge customers to recover the reasonable cost of providing the recycled water. • The proposed charges do not exceed the actual District costs to provide the recycled water. • The proposed charges are exempt from the California Environmental Quality Act (CEQA). (Four affirmative votes are required for adoption.) Attached Supporting Documents: 1. Proposed Ordinance: Schedule of Recycled Water Charges (Uncodified) Page 2 of 2 ATTACHMENT 1 ORDINANCE NO. .186 AN UNCODIFIED ORDINANCE OF THE CENTRAL CONTRA COSTA SANITARY DISTRICT ADOPTING A SCHEDULE OF RECYCLED WATER CHARGES IN ACCORDANCE WITH DISTRICT CODE CHAPTER 6.38 WHEREAS, the Central Contra Costa Sanitary District (District) has previously developed and instituted Recycled Water Charges to finance the recycled water furnished by the District, and WHEREAS, it is reasonable and necessary that all users of the District's recycled water contribute their appropriate portion of the funding for the production of recycled water and the operation, maintenance, and periodic replacement of District recycled water facilities; and WHEREAS, the District's Board of Directors has reviewed the current Schedule of Recycled Water Charges and has determined that the annual recycled water charges should be increased by 3 percent for Fiscal Year 2015 -16 and 3 percent for Fiscal Year 2016 -17 charges; and WHEREAS, Chapter 6.38 of the District Code provides the enabling authority for the District to implement the proposed uncodified Schedule of Recycled Water Charges; and WHEREAS, a properly noticed public hearing to receive comments and protests and to consider the proposed uncodified Schedule of Recycled Water Charges 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 recycled water charges were sent by first, class U.S. mail to every owner of property that is connected or could reasonably be connected to the recycled water distribution system 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 recycled water charges, 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, and the District was not presented with protests by a majority of the owners of the identified parcels affected by this change. Ordinance No. Z%V Page 2 of 3 C. The amount of the charge imposed does not exceed the proportional cost of the service attributable to the properties receiving recycled water and the charge is only imposed on those properties or users actually receiving recycled water. 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 Recycled Water Charges" as set forth in this Ordinance is hereby adopted in uncodified form pursuant to the provisions of District Code Section 6.38. Schedule of Recycled Water Charges User Group Fiscal Year 2015 -2016 Fiscal Year 2016 -2017 Potable Water Customers $3.38/1,000 gallons $3.48/1,000 gallons Canal (Raw) Water Customers $1.61/1,000 gallons $1.66/1,000 gallons As of the effective date of this Ordinance, Recycled Water Charges shall be charged at such rates and for such categories of users asset forth in said Schedule, and shall remain in effect until amended or replaced by ordinance. Section 2 This Ordinance shall be a general regulation of the District and shall be published once in the Contra Costa Times and San Ramon Valley Times, newspapers of general circulation within the District, and shall be effective on July 1, 2015. This ordinance shall be kept on file with the Secretary of the District. Ordinance No. 2$(i Page 3 of 3 PASSED AND ADOPTED by the Board of Directors of the Central Contra Costa Sanitary District on the 4t" 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, 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. District Counsel