Loading...
HomeMy WebLinkAbout05. Set Public Hearing to amend the Schedule of Environmental and Development-Related Fees and ChargesCentral Contra Costa Sanitary District BOARD OF DIRECTORS POSITION PAPER Board Meeting Date: May 5, 2016 Subject: ESTABLISH JUNE 2, 2016 AT 2:00 PM AS THE DATE AND TIME FOR A PUBLIC HEARING REGARDING A PROPOSED ORDINANCE TO AMEND THE SCHEDULE OF ENVIRONMENTAL AND DEVELOPMENT - RELATED FEES AND CHARGES Submitted By: Initiating Dept./Div.: Thomas Brightbill, Senior Engineer Eng./Planning and Development Services REVIEWED AND RECOMMENDED FOR BOARD ACTION: D. Gemmell — Planning & Dev. Svcs Division Manager JM. Petit — Director of Engineering & Technical Services Kent Alm Roger S. Bailey Counsel for the District General Manager ISSUE: District Code Section 6.30 requires that a public hearing be held prior to the Board of Directors' consideration of amendments to the Schedule of Environmental and Development -Related Fees and Charges. RECOMMENDATION:. Establish June 2, 2016 at 2:OOpm 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 Environmental and Development -Related Fees and Charges. FINANCIAL IMPACTS: None by this action. If the staff -proposed revisions to the Environmental and Development -related Fees and Charges are adopted 21 charges will remain unchanged, 66 charges will increase, and one new fee will be added. Staff estimates that increased revenue in the categories where increases to charges are recommended will be modest. 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 Environmental and Development -related Fees and Charges are to be revised. If the hearing is held on June 2, 2016 as recommended, the updated charges would be effective on July 1, 2016. BACKGROUND: Staff has completed its annual review of the District's Environmental and Development -related Fees and Charges, and has concluded that it would be appropriate to revise these charges to account for changes in the actual cost to provide services. In prior years, these charges were calculated using current salary data, revised mileage and other costs, and the District's revised overhead rate. This year, the overhead rate used in the calculation is 216%. The District's overhead rate for fiscal year (FY) 2016-17 was approved by the Board of Directors on December 17, 2015. Page 1 of 2 POSITION PAPER Board Meeting Date: May 5, 2016 Subject: ESTABLISH JUNE 2, 2016 AT 2:OOPM AS THE DATE AND TIME FOR A PUBLIC HEARING REGARDING A PROPOSED ORDINANCE TO AMEND THE SCHEDULE OF ENVIRONMENTAL AND DEVELOPMENT -RELATED FEES AND CHARGES Staff also proposes to conduct a public hearing on a related recommendation to revise capacity fees at the same June 2, 2016 Board meeting. 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 fees and charges will be conducted by staff before the public hearing date. Informational material will be mailed to approximately 250 contractors, engineers, developers, permitted industrial users, and other interested parties. COMMITTEE RECOMMENDATION: The proposed changes will be reviewed by the Finance Committee at the April 22, 2016 meeting. RECOMMENDED BOARD ACTION: Establish June 2, 2016 at 2:00 pm 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 Environmental and Development - Related Fees and Charges. Attached Supporting Document: 1. Proposed Ordinance, including Exhibit A: Schedule of Environmental and Development Fees and Charges (Uncodified) 2. Report regarding Environmental and Development Fees and Charges dated April 15, 2016 Page 2 of 2 ATTACHMENT 1 The proposed uncodified Ordinance, including Exhibit A to the Ordinance, will be prepared once the Finance Committee has reviewed the draft position paper and associated report regarding Environmental and Development Fees and Charges. ATTACHMENT 2 CENTRAL CONTRA COSTA SANITARY DISTRICT Report Regarding Environmental and Development Fees and Charges Update April 15, 2016 OVERVIEW The Central Contra Costa Sanitary District (District) Board of Directors will soon consider adopting an ordinance to revise Chapter 6.30, Schedule of Fees and Charges, for various environmental and development services. BACKGROUND Chapter 6.30 of the District Code includes a schedule of fees and charges for environmental and development services provided to property owners, contractors, developers, septic and grease waste haulers, and permitted industrial users. These services include permitting; plan review; inspection of construction for side sewers and main line extensions; addition of new sewers, parcels, and permit information to District maps; source control permits and inspections; and septic and grease hauler sampling and treatment. These fees and charges are intended to recover the District's direct and indirect labor costs, other operating expenses, and administrative overhead incurred in providing the services. The last update to these fees was on June 4, 2015. District staff reviews the fees and costs to provide services annually to assess whether changes are appropriate. The State of California mandates that fees and charges not exceed the cost of providing the service for which a fee or charge is levied. PROPOSED FEES AND CHARGES Table 1 presents a comparison of the current and proposed fees and charges. For FY 2016-17, staff is recommending changes to the Schedule of Fees and Charges based on: • Recovering the cost for the service provided, taking into consideration relevant operating costs, including current labor costs and updated mileage costs. • Any changes in procedures and staff assignments to performing the various services. Fee Increases Two fees, the Grease Variance Review fee and the Private Pumping System Plan Check Report Regarding Environmental and Development Fees & Charges Page 2 April 15, 2016 fee, have proposed increases of 11.1%. These increases are proposed based on minor updates to the staff time, staff labor cost, and mileage expense needed to accurately reflect the District's costs to provide the corresponding services. The Alhambra Valley Contractual Assessment District (AVAD) and St. Mary's Road Contractual Assessment District multipliers have proposed increases of 0.269% which reflect the latest State of California Pooled Money Investment Account (PMIA) annual yield. The use of PMIA for these fee multipliers was specified at the time the fees were established. The remaining fees with changes have proposed increases between 4.2% and 7.3% reflecting increases in District labor costs and administrative overhead and a slight decrease in mileage costs. The average increase of these fees is 6.5%. Variations in the number of labor hours, overtime hours, and mileage used as the basis for each fee are the source of the variability in the proposed increases. New Fee One new fee, the Source Control Enforcement Review and Inspection fee, is proposed. Periodically, District Source Control inspectors discover violations while conducting inspections of currently -permitted businesses. This fee will cover the administrative review and re -inspection of corrections needed to remedy these violations. ALTERNATIVES The Board of Directors may decline to increase some or all of the proposed fees and charges. In this event, the fees that went into effect in July 2015 would continue. Alternatively, any significant fees could be phased over time. However, this is not recommended to fully recover costs expended in providing these environmental and development -related services. SUMMARY If the proposed revisions to the Environmental and Development -related Fees and Charges are adopted 21 charges will remain unchanged, 66 charges will increase, and one new fee will be added. Staff estimates that increased revenue in the categories where increases to charges are recommended will be modest. Supporting Document: Attachment 1- Comparison of Current & Proposed Fees and Charges for FY 2016-17 ATTACHMENT 1 CENTRAL CONTRA COSTA SANITARY DISTRICT COMPARISON OF CURRENT & PROPOSED FEES & CHARGES FOR 2016-17 DRAFT Fee Category I Current Fee I Proposed Fee I % Change (A) DEVELOPMENT AND PLAN REVIEW Review of new sewer plans and related documents; review of plans for and processing of residential and commercial permit applications; installer reimbursement of sewer construction costs from subsequent connectors; identification of right-of-way conflicts. (A-1) Development Review: Mainline Plan Review (actual cost): Base Fee (minimum charge - includes four hours of plan review) $3,246 $3,469 6.9% Each additional hour in excess of base fee $164 $175 6.7% Special Cut Sheet Review $327 $348 6.4% Manhole only design & plan review $1,191 $1,273 6.9% Right of Way Document Review - IOD / Sub Map (each): $720 $769 6.8% Right of Way Document Review - No Changes Required $459 $491 7.0% Right of Way document review - Appurtenance (initial): $638 $681 6.7% Appurtenance (each additional) $245 $262 6.9% (A-2) Application Fees Overflow Protection Device Installation (OPD only) no charge no charge no change Side Sewer Cleanout installation (to facilitate installation of OPD only; permit not $25 $25 no change upgradable) Basic Application (side sewer work, easement staking, permit renewal) $134 $142 6.0% Existing parcel - new sewer service $216 $230 6.5% New parcel - new sewer service $292 $309 5.8% Commercial Application (includes up to one hour of plan review) $320 $340 6.3% Commercial Application Plan Review - Additional hours, covers review of plans for a change in use or expansion of a commercial facility, time in excess of one hour $150 $160 6.7% Capacity Use Charge Program $435 $465 6.9% Capacity Fee Installment Program and Promissory Note Program $435 $465 6.9% (A-3) Reimbursement Accounts: Set-up fee I $1,260 I $1,347 6.9% Transaction fee $190 $203 6.8% (A-4) Special Studies Base fee (4 hours plus misc. costs) $673 $719 6.8% Each additional hour $147 $157 6.8% Source Control Business Review - base fee, includes plan review, site visit and inspection time up to four hours Source Control Business Review - each additional hour in excess of four hour base $178 $190 6.7% fee for plan review, site visit and inspection time Grease Variance Review (includes site visit) $333 $370 11.1% Site Collector Plan Check $408 $436 6.9% Source Control Enforcement Review and Inspection $522 new fee (A-5) Private pumping system plan check - Commercial (Outside Force Main) $699 $747 6.9% Additional Review $316 $339 7.3% Private pumping system plan check - Residential $352 $391 11.1% (A-6) Annexation Fee $524 $560 6.9% (A-7) Special Approvals $369 $393 6.5% $877 $937 6.8% Revised: 4/18/2016 Attach 1 - Env Dev Rates Comparison 2016-04-12.xlsx Page 1 ATTACHMENT 1 CENTRAL CONTRA COSTA SANITARY DISTRICT COMPARISON OF CURRENT & PROPOSED RATES & CHARGES FOR 2016-17 DRAFT (B) CONSTRUCTION INSPECTION Inspection of new sewer main construction and new connections and other sewer work on private property (includes TV inspection when appropriate). (B-1) Mainline Inspection (contributed assets): Base Fee $789 $849 7.6% Per Foot Charge (in street) $12.50 $13.25 6.0% Per Foot Charge (in undeveloped land) $8.50 $9.00 5.9% New Manhole, Rodding Inlet $840 $896 6.7% (B-2) Inspections by type: Overflow Protection Device installation (OPD only) no charge no charge no change Side Sewer Cleanout installation (to facilitate installation of OPD only) $50 $50 no change Side Sewer Installation / Repair per 100 feet: $210 $224 6.7% Single Inspection Charge (e.g. sewer connection; encroachment verification; side sewer cap on property; tap and lateral (new or replacement); air test; reinspection; $210 $224 6.7% homeowner preconstruction inspection) Manhole tap; lateral abandonment at main; pipe bursting; trash enclosure w/o trap; side sewer CIPP repair; outdoor grease trap only Manhole Alteration; trash enclosure with trap; grease interceptor abandonment $420 $448 6.7% $630 $672 I Outside pump installation $840 $896 I 6.7% New Manhole or Rodding Inlet (private) $840 $896 I 6.7% Grease / Sand / Oil Interceptor $1,260 $1,344 I 6.7% (B-3) Overtime inspection: First Hour (if responding from off-site) $110 $115 4.5% Every hour thereafter $72 $75 4.2% Weekend/Holiday (New Year's Day, Martin Luther King, President's Day, Memorial Day, July 4th, Labor Day, Veteran's Day, Thanksgiving, Christmas) - 4 hr. $326 $340 4.3% minimum (B-4) Inspection of non -permitted work (+ avoided charge) $991 $1,058 6.8% 6.7% Revised: 4/18/2016 Attach 1 - Env Dev Rates Comparison 2016-04-12.xlsx Page 2 (B-5) ATTACHMENT 1 CENTRAL CONTRA COSTA SANITARY DISTRICT COMPARISON OF CURRENT & PROPOSED RATES & CHARGES FOR 2016-17 DRAFT Fee Category 1 Application of Fee INSPECTION CHARGES FOR NEW CONNECTIONS (Informational Only) The following fees have been in effective since July 1, 2014. This information is to clarify how fees are applied and charged for new connections. This procedure coincides with the 2014 Update to the CCCSD Standard Specifications. Current procedure at the Permit Counter is to collect all connection and inspection fees for new construction when a structures roof is on and the rough plumbing is installed ("Roof and Rough"). Under the new procedure, a developer can choose to: 1. Connect at Roof and Rough, or 2. Connect at building foundation following the procedures outlined in the 2014 Edition of the Standard Specifications. For either scenario, connection fees will be due and payable prior to permit issuance (consistent with CCCSD Standard Specifications Ed. 2011; Section 3-07 Payment of Fees and Charges.) The changes affect Category (B) Construction Inspection Section (B-2) and are shown below: Residential Connections (up to and including four units) at Roof and Rough: This fee is for inspection of new residential units connecting to CCCSD's mainline after the structures roof is on and the rough plumbing has been installed. This fee $420 per unit $448 per unit 6.7% includes: one building connection inspection and one side sewer inspection (up to 100 feet). Additional inspections and related fees may be required. Residential Connections (up to and including four units) at building foundation: This fee is for inspection of new residential units connecting to CCCSD's mainline prior to structure being roofed and rough plumbing being installed. This fee includes: one building connection inspection, one side sewer inspection (up to 100 feet), and two additional inspections as required per CCCSD Standard Specifications. Additional inspections and related fees may be required. Commercial/Multiple Residential Connections (more than four units) at Roof and Rough: This fee is for inspection of new commercial or multiple residential units connecting to CCCSD's mainline after structures roof is on and the rough plumbing has been installed. This fee includes: one building connection inspection and one side sewer inspection (up to 100 feet). Additional inspections and related fees may be required. $840 per unit $896 per unit 6.7% $420 per unit $448 per unit 6.7% Commercial/Multiple Residential Connections (more than four units) at building foundation: This fee is for inspection of new commercial or multiple residential units connecting to CCCSD's mainline prior to structure being roofed and rough plumbing being installed. This fee includes: one building connection $1,050 per unit $1120 per unit 6.7% inspection, one side sewer inspection (up to 100 feet), one pre -construction meeting, and two additional inspections as required per CCCSD Standard Specifications. Additional inspections and related fees may be required. Revised: 4/18/2016 Attach 1 - Env Dev Rates Comparison 2016-04-12.xlsx Page 3 ATTACHMENT 1 CENTRAL CONTRA COSTA SANITARY DISTRICT COMPARISON OF CURRENT & PROPOSED RATES & CHARGES FOR 2014-15 DRAFT Fee Category (C) COLLECTION SYSTEM SERVICES (C-1) (C-2) (C-3) (C-4) (C-5) (D) (D-1) (D-2) (D-3) (D-4) (E) (E-1) (E-2) (E-3) (E-4) (E-5) (E-6) (E-7) Current Fee I Proposed Fee I % Change TV inspection of sewers conducted separate from a construction inspection activity; verification of sewer location and sewer service connection. TV Inspection: Weekday, hourly rate Minimum Charge (2 hr min) Overtime - First Hour Overtime - Each Additional Hour Overtime - Weekend / Holiday (4 hr min) Dye test Collection system repair Cancelled TV Inspection without prior notice Sewer locating and marking RIGHT-OF-WAY Establishing right-of-way agreements and resolving conflicts. Process Quitclaim Deeds Process Quitclaim Deed - plat and legal by others Process Real Property Agreement, License, or Easement Base Fee (minimum charge) Each Additional Hour (after 2 hours) Right-of-way Research / Encroachment Resolution Fee Right of Entry / Encroachment Permit Fee MISCELLANEOUS $254 $508 $161 $127 $542 $318 Actual Expense $464 $288 $271 $542 $167 $131 $560 $337 Actual Expense $495 $307 6.7% 6.7% 3.7% 3.1% 3.3% 6.0% no change 6.7% 6.6% $1,227 $1,309 6.7% $731 $782 7.0% $1,008 $158 Actual Expense $226 District services provided for private sewer projects; interest rates for CCCSD programs; copying fees. Engineering - private sewer projects Soil evaluation - private sewer projects Surveying Minimum annual interest rate for CADs and Capacity Use Program Document / Plan Copying Fees 8 1/2" x 11"; 8 1/2" x 14"; 11" x 17" (per sheet) 24" x 36" Plan (per sheet) CCCSD Standard Specifications Multiplier to be applied to Alhambra Valley Assessment District (AVAD) 2010-11 Parcel Assessment Amount listed in Ordinance 262 -Exhibit B to determine AVAD Reimbursement Fee amounts applicable to connections in 2016-17. Multiplier to be applied to St. Mary's Road Contractual Assessment District (CAD) 2011-1 Reimbursement Fees listed in Ordinance 279 -Exhibit B. Applicable to connections in 2016-17. Actual Expense Actual Expense Actual Expense 6.00% $0.15 $3.00 $20.00 1.03084 1.00556 $1,075 $169 Actual Expense $241 Actual Expense Actual Expense Actual Expense 6.00% $0.15 $3.00 $20.00 1.03361 1.00827 6.6% 7.0% no change 6.6% no change no change no change no change no change no change no change 0.3% 0.3% Revised: 4/18/2016 Attach 1 - Env Dev Rates Comparison 2016-04-12.xlsx Page 4 ATTACHMENT 1 CENTRAL CONTRA COSTA SANITARY DISTRICT COMPARISON OF CURRENT & PROPOSED RATES & CHARGES FOR 2016-17 DRAFT Fee Category Current Fee I Proposed Fee I % Change (F) INDUSTRIAL PERMIT FEES Permitting and inspection of industries and other commercial dischargers to ensure availability and use of pretreatment processes. (F-1) Class I Fees (F-2) Class II Fees (F-3) (F-4) (F-5) Class III Fees Industrial user permit application fee Special discharge permit application fee (*) No on-site inspection, no capacity review On-site inspection Additional charge for capacity review (Required for discharges >50 gpm) (G) SEPTAGE DISPOSAL (**) Sampling and disposal of septic waste and grease. (G-1) Annual permit fee (G-2) Residential septic/toilet waste < 2,000 gallons > 2,000 gallons (G-3) Restaurant grease waste < 2,000 gallons > 2,000 gallons Base permit fee of $3,450 + cost of District's lab analysis Base permit fee of $3,450 + cost of District's lab analysis Base permit fee of $3,450 + cost of District's lab analysis Base permit fee of $3,450 + cost of District's lab analysis $0 $0 $0 $0 $312 $750 $239 $330 $800 $255 $1,750 $1,865 $20 + $0.15/gal $60 + $0.15/gal $20 + $0.02/gal $60 + $0.02/gal $20 + $0.15/gal $60 + $0.15/gal $20 + $0.02/gal $60 + $0.02/gal (*) Additional charges to be billed separately if staff time incurred is above that included in the base fee. (**) Other approved waste will be charged at the residential septic and portable toilet waste rate unless actual strength characteristics are provided. no change no change no change no change 5.8% 6.7% 6.7% 6.6% no change no change no change no change Revised: 4/18/2016 Attach 1 - Env Dev Rates Comparison 2016-04-12.xlsx Page 5