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HomeMy WebLinkAbout05.a.1) Public hearing to adopt 3 ordinances to amend: 1) Schedule of Environmental Rates & Charges, 2) Schedule of Capacity Fees, and 3) District Code Chapter 6.30 Central Contra Costa Sanitary District 5.a. 1 ) ' BOARD OF DIRECTORS POSITION PAPER Board Meeting Date: June 2, 2016 Subject. CONDUCT A PUBLIC HEARING TO RECEIVE PUBLIC COMMENT ON ADOPTING: • AN UNCODIFIED ORDINANCE AMENDING THE SCHEDULE OF ENVIRONMENTAL RATES AND CHARGES • AN UNCODIFIED ORDINANCE AMENDING CAPACITY FEES • A CODIFIED ORDINANCE AMENDING DISTRICT CODE RELATING TO ENVIRONMENTAL AND DEVELOPMENT- RELATED RATES AND CHARGES Submitted By: Initiating Dept/Div.: Thomas Brightbill, Senior Engineer Planning and Development Services REVIEWED AND RECOMMENDED FOR BOARD ACTION: D. Gemmell—Planning & Development Services Division Mgr. JM. Petit—Director of Engineering &Technical Services K.Alm Roger S.Bailey Counsel for the Distric General Manager ISSUE: The District Code and state law require that a public hearing must be held to receive public comment on any proposed increases to Environmental and Development-Related Rates and Charges and Capacity Fees. Additionally, the District Code requires that a public hearing be held prior to Board consideration of revisions to the District Code. BACKGROUND: Environmental and Development-Related Rates and Charges Chapter 6.30 of the District Code authorizes certain rates and charges for environmental and development-related services provided to property owners, contractors, developers, septic and grease waste haulers, and permitted industrial users. These services include permit counter assistance; plan review; construction inspection for private side sewers and public main line extensions; addition of new sewers, parcels, and permit information to District maps; administration of source control permits and inspections; and septic and grease hauler permitting, sampling and treatment. District Code allows for periodic review of these fees and charges to ensure the District is accurately recovering its costs to provide these environmental and development-related services. Based on its most recent review, District staff is recommending that the Environmental and Development-Related Rates and Charges be revised effective July 1, 2016 to include: 1) adjustment for changes in salaries, benefits and administrative overhead; and 2) adjustment of the mileage rate for those charges that include a mileage factor. A proposed uncodified ordinance incorporating these proposed fee changes is attached (see Attachment 1). As detailed in the attached Report Regarding Environmental and Page 1 of 6 POSITION PAPER Board Meeting Date: June 2, 2016 subject: CONDUCT A PUBLIC HEARING TO RECEIVE PUBLIC COMMENT ON ADOPTING: • AN UNCODIFIED ORDINANCE AMENDING THE SCHEDULE OF ENVIRONMENTAL RATES AND CHARGES • AN UNCODIFIED ORDINANCE AMENDING CAPACITY FEES • A CODIFIED ORDINANCE AMENDING DISTRICT CODE RELATING TO ENVIRONMENTAL AND DEVELOPMENT-RELATED RATES AND CHARGES Development Rates and Charges Update (see Attachment 2), most of the fees 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%. Capacity Fees The District charges a capacity fee when properties are first connected to its public sewer or when there is an expansion or change of use for non-residential properties. Each year this fee is updated based on changes to the value of District 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. District Code Chapter 6.12.080 allows for capacity fees to be set to ensure adequate funding of all needed upgrades, replacements, renovations, and improvements of existing District wastewater facilities. A proposed uncodified ordinance to establish the "Schedule of Capacity Fees, Rates and Charges" effective July 1, 2016 is attached (see Attachment 3) and the proposed fees are shown in the table below: Fee Category Current Proposed % Change Gravity Zone Fee $6,005 per RUE $5,948 per RUE -0.9% Pumped Zone Fee $7,655 per RUE $7,556 per RUE -1.2% As detailed in the attached Report Regarding the Capacity Fee Update (see Attachment 4), the proposed fees are lower than at present. District Code Update District Code Chapter 6.30 makes reference to a "Schedule of Environmental and Development-Related Rates and Charges". To avoid confusion with sewer service rates, staff recommends amending District Code Chapter 6.30 to retitle the schedule to "Schedule of Environmental and Development Fees and Charges" and replacing the word "rates" with "fees" in other portions of the chapter, effective July 1, 2016. Page 2 of 6 POSITION PAPER Board Meeting Date: June 2, 2016 Subject: CONDUCT A PUBLIC HEARING TO RECEIVE PUBLIC COMMENT ON ADOPTING: • AN UNCODIFIED ORDINANCE AMENDING THE SCHEDULE OF ENVIRONMENTAL RATES AND CHARGES • AN UNCODIFIED ORDINANCE AMENDING CAPACITY FEES • A CODIFIED ORDINANCE AMENDING DISTRICT CODE RELATING TO ENVIRONMENTAL AND DEVELOPMENT-RELATED RATES AND CHARGES A strikeout of the proposed changes to District Code Chapter 6.30 is included as Attachment 5, and the proposed ordinance is included as Attachment 6. Should this District Code update be approved at the June 2, 2016 hearing, the changes will go into effect July 1, 2016, and the Schedule of Environmental and Development- Related Rates and Charges will be retitled accordingly as of July 1, 2016. ALTERNATIVES/CONSIDERATIONS: The Board may decline to increase some or all of the proposed Environmental and Development-Related Rates and Charges. In this event, the fees that went into effect on July 1, 2015 would continue. This is not recommended as the District would not fully recover costs expended in providing the corresponding environmental and development-related services. The Board may decline to adjust the Schedule of Capacity Fees. In this event, the fees that went into effect on July 1, 2015 would continue. This is not recommended as capacity fees would not accurately reflect the value of each parcel's share of the District's assets. The Board of Directors may decline to revise District Code Chapter 6.30, in which case the titling of the Environmental and Development-Related Rates and Charges would remain as is. FINANCIAL IMPACTS: The proposed Environmental and Development-Related Rates and Charges are designed to recover the District's direct and indirect labor costs, other operating costs, and administrative overhead costs incurred in providing environmental and development-related services. If the recommended Environmental and Development-related rates are adopted, staff estimates that approximately $100,000 in additional revenue will be generated in Fiscal Year (FY) 2016-17. If the recommended Capacity Fees are adopted, staff estimates that approximately $60,000 less revenue will be generated in FY 2016-17. No financial impact is anticipated if the change to District Code Chapter 6.30 is approved. Page 3 of 6 POSITION PAPER Board Meeting Date: June 2, 2016 subject CONDUCT A PUBLIC HEARING TO RECEIVE PUBLIC COMMENT ON ADOPTING: • AN UNCODIFIED ORDINANCE AMENDING THE SCHEDULE OF ENVIRONMENTAL RATES AND CHARGES • AN UNCODIFIED ORDINANCE AMENDING CAPACITY FEES • A CODIFIED ORDINANCE AMENDING DISTRICT CODE RELATING TO ENVIRONMENTAL AND DEVELOPMENT-RELATED RATES AND CHARGES COMMUNITY OUTREACH: Staff conducted a coordinated outreach program to inform and solicit input from interested customers regarding the proposed Environmental and Development-Related Rates and Charges and the proposed Capacity Fees. Notices of the public hearing were posted and published in the Contra Costa Times and San Ramon Valley Times. In addition, approximately 540 letter reports including the proposed schedules of rates and charges were distributed to developers, engineers, architects, contractors, and representatives of the Home Builders Association of Northern California, the Engineering and Utilities Contractors' Association, the Associated Building Contractors Golden Gate Chapter, and others who have requested notice of fee increase proposals. As of Friday, May 27, 2016 no comments about the proposed changes in fees have been received. COMMITTEE RECOMMENDATION: The Finance Committee reviewed the proposals at its April 22, 2016 meeting and recommended approval. RECOMMENDED BOARD ACTION: Once the public hearing has been conducted: 1. Adopt the proposed uncodified ordinance revising the Schedule of Environmental and Development-Related Rates and Charges effective July 1, 2016, including the following findings: a. The District incurs substantial costs to provide environmental and development services. b. It is necessary to charge customers and other users to recover the reasonable cost of providing the services. C. The proposed fees and charges reasonably represent the actual District costs to provide the services. d. The proposed fees and charges are exempt from the California Environmental Quality Act (CEQA). Nage 4 of 6 POSITION PAPER Board Meeting Date: June 2, 2016 subject: CONDUCT A PUBLIC HEARING TO RECEIVE PUBLIC COMMENT ON ADOPTING: • AN UNCODIFIED ORDINANCE AMENDING THE SCHEDULE OF ENVIRONMENTAL RATES AND CHARGES • AN UNCODIFIED ORDINANCE AMENDING CAPACITY FEES • A CODIFIED ORDINANCE AMENDING DISTRICT CODE RELATING TO ENVIRONMENTAL AND DEVELOPMENT-RELATED RATES AND CHARGES 2. Adopt the proposed uncodified ordinance revising the Capacity Fee schedule effective July 1, 2016, including the following findings: a. The District has made a substantial investment in assets that will benefit new users. b. 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. C. There is a strong and reasonable relationship between the actual added burden imposed by new users and the proposed Capacity Fee. d. 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 e. 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. f. The proposed Capacity Fees are exempt from CEQA. 3. Adopt the proposed ordinance to revise District Code Chapter 6.30 effective July 1, 2016. Four affirmative votes of the Board are required for adoption of Items 1 and 2 above. A majority vote of the Board is required to adopt Item 3. Page 5 of 6 POSITION PAPER Board Meeting Date: June 2, 2016 subject: CONDUCT A PUBLIC HEARING TO RECEIVE PUBLIC COMMENT ON ADOPTING: • AN UNCODIFIED ORDINANCE AMENDING THE SCHEDULE OF ENVIRONMENTAL RATES AND CHARGES • AN UNCODIFIED ORDINANCE AMENDING CAPACITY FEES • A CODIFIED ORDINANCE AMENDING DISTRICT CODE RELATING TO ENVIRONMENTAL AND DEVELOPMENT-RELATED RATES AND CHARGES Attached Supporting Documents: 1. Proposed Ordinance, including Exhibit A: Schedule of Environmental and Development-Related Rates and Charges(Uncodified) 2. Report Regarding Environmental and Development-Related Rates and Charges Update 3. Proposed Ordinance, including Exhibit A: Schedule of Capacity Fees, Rates, and Charges (Uncodified) 4. Report Regarding the Capacity Fee Update 5. Proposed District Code Chapter 6.30(strikeout) 6. Proposed Ordinance revising District Code Chapter 6.30 7. PowerPoint Presentation Page 6 of 6 ATTACHMENT 1 ORDINANCE NO. 2D AN ORDINANCE OF THE CENTRAL CONTRA COSTA SANITARY DISTRICT ADOPTING AN UNCODIFIED SCHEDULE OF ENVIRONMENTAL AND DEVELOPMENT RATES AND CHARGES IN ACCORDANCE WITH DISTRICT CODE CHAPTER 6.30 WHEREAS, the Board of Directors (Board) of the Central Contra Costa Sanitary District (District) finds that the District incurs substantial costs to provide various environmental and development services, such as, but not limited to, administration and processing of annexations, customer assistance at the permit counter, plan review and inspection for sewer line installation, alteration, replacement and repair, the inclusion of new information on District maps, administration and permit inspection related to the Source Control Program, permitting of septage and grease haulers, and treatment of grease and septage at the treatment plant; and WHEREAS, the Board finds that it is necessary to charge customers and other users of District services to recover the reasonable cost of providing said services; and WHEREAS, District staff has comprehensively analyzed the actual cost of providing the various environmental and development services listed above based on direct costs, staff costs and overhead for time and effort incurred to provide listed services; and WHEREAS, the Board finds that the Schedule of Environmental and Development Rates and Charges, as reflected in Exhibit "A" to this Ordinance, reasonably represents the actual costs to provide the services delineated in said Schedule of Rates and Charges; and WHEREAS, the Board finds that this action is categorically exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15273 (a)(1) and (3) of the State CEQA Guidelines, in that the rates and charges are being charged merely to reimburse the District for staff costs and expenses. NOW, THEREFORE, the Board of Directors of the Central Contra Costa Sanitary District does hereby ordain as follows: Section 1 (To be uncodified) The Schedule of Environmental and Development Rates and Charges as set forth in full in Exhibit "A" to this Ordinance, which exhibit is hereby incorporated in full herein by this reference, is hereby adopted in uncodified form pursuant to the provisions of District Code Chapter 6.30. As of the effective date of this Ordinance, the rates and charges for each environmental and development service shall be as set forth in said schedule, and shall remain in effect until amended or replaced by ordinance. Ordinance No. a2 90 Page 2 of 2 Central Contra Costa Sanitary District 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. 287 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. 287 have 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. Section 3 This Ordinance shall be a general regulation of the District and shall be published in the Contra Costa Times and San Ramon Valley Times, newspapers of general circulation, published and circulated within District and shall be effective as of July 1, 2016. PASSED AND ADOPTED by the Board of Directors of the Central Contra Costa Sanitary District on the 2"d day of June, 2016, by the following vote: AYES: Members: NOES: Members: ABSENT: Members: Tad J. Pilecki 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 CENTRAL CONTRA COSTA SANITARY DISTRICT ENVIRONMENTAL AND DEVELOPMENT RATES & CHARGES FOR 2016-17 (uncodified) This Schedule of Environmental and Development-Related Rates and Charges,to be effective July 1,2016,was established by the Central Contra Costa Sanitary District Ordinance No..Q adopted June 2,2016. Fee Category Amount (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 $3,469 Each additional hour in excess of base fee $175 Special Cut Sheet Review $348 Manhole only design & plan review $1,273 Right of Way Document Review- IOD/Sub Ma (each): $769 Right of Way Document Review- No Changes Required $491 Right of Way document review-Appurtenance(initial): $681 Appurtenance each additional) $262 (A-2) Application Fees Overflow Protection Device Installation OPD only) no charge Side Sewer Cleanout installation (to facilitate installation of OPD only; permit not $25 upgradable) Basic Application side sewer work, easement staking, permit renewal $142 Existing parcel -new sewer service $230 New parcel - new sewer service $309 Commercial Application includes up to one hour of plan review $340 Commercial Application Plan Review-Additional hours, covers review of plans for $160 a change in use or expansion of a commercial facility, time in excess of one hour Capacity Use Program $465 Capacity Fee Installment Program and Promissory Note Program $465 (A-3) Reimbursement Accounts: Set-up fee $1,347 Transaction fee $203 (A-4) Special Studies Base fee 4 hours plus misc. costs $719 Each additional hour $157 Source Control Business Review- base fee, includes plan review, site visit and $g37 inspection time up to four hours Source Control Business Review-each additional hour in excess of four hour base $190 fee for plan review, site visit and inspection time Grease Variance Review includes site visit $370 Site Collector Plan Check $436 Source Control Enforcement Review and Inspection $522 (A-5) Private pumping system plan check-Commercial Outside Force Main $747 Additional Review $339 Private pumping system plan check- Residential $391 (A-6) Annexation Fee $560 (A-7) Special Approvals $393 EXHIBIT A CENTRAL CONTRA COSTA SANITARY DISTRICT ENVIRONMENTAL AND DEVELOPMENT RATES & CHARGES FOR 2016-17 (uncodified) (B) CONSTRUCTION INSPECTION Inspection of new sewer main construction and new connections and other sewer work on private property (includes TV inspection when appropriate). (13-1) Mainline Inspection contributed assets): Base Fee $849 Per Foot Charge in street $13.25 Per Foot Charge in undeveloped land $9.00 New Manhole, Rodding Inlet $896 (13-2) inspections by type: Overflow Protection Device installation OPD only) no charge Side Sewer Cleanout installation to facilitate installation of OPD only) $50 Side Sewer Installation/Repair per 100 feet: $224 Single Inspection Charge (e.g. sewer connection; encroachment verification; side sewer cap on property; tap and lateral (new or replacement); air test; reinspection; $224 homeowner preconstruction inspection) Manhole tap; lateral abandonment at main; pipe bursting; trash enclosure w/o $448 trap; side sewer CIPP repair; outdoor grease trap only Manhole Alteration; trash enclosure with trap; grease interceptor abandonment $672 Outside pump installation $896 New Manhole or Rodding Inlet(private) $896 Grease/Sand/Oil Interceptor $1,344 (13-3) Overtime inspection: First Hour if responding from off-site $115 Every hour thereafter $75 Weekend/Holiday(New Year's Day, Martin Luther King, President's Day, Memorial $340 Day, July 4th, Labor Day, Veteran's Day, Thanksgiving, Christmas) -4 hr. minimum (13-4) Inspection of non-permitted work(+ avoided charge) $1,058 EXHIBIT A CENTRAL CONTRA COSTA SANITARY DISTRICT ENVIRONMENTAL AND DEVELOPMENT RATES & CHARGES FOR 2016-17 (uncodified) Fee Category Application (13-5) 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 structure's 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 (13-2) 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 structure's roof is on and the rough plumbing has been installed. This fee $448 per unit 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 $896 per unit 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 structure's roof is on and the rough plumbing $448 per unit 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. 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 inspection, one side sewer $1120 per unit 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. EXHIBIT A CENTRAL CONTRA COSTA SANITARY DISTRICT ENVIRONMENTAL AND DEVELOPMENT RATES & CHARGES FOR 2016-17 (uncodified) Fee Category Amount (C) COLLECTION SYSTEM SERVICES TV inspection of sewers conducted separate from a construction inspection activity, verification of sewer location and sewer service connection. (C-1) TV Inspection: Weekday, hourly rate $271 Minimum Charge 2 hr min $542 Overtime- First Hour $167 Overtime-Each Additional Hour $131 Overtime-Weekend/Holiday 4 hr min $560 C-2 Dye test $337 C-3 Collections stem repair Actual Expense C-4 Cancelled TV Inspection without prior notice $495 C-5 Sewer locating and marking $307 (D) RIGHT-OF-WAY Establishing right-of-way agreements and resolving conflicts. (D-1) Process Quitclaim Deeds $1,309 Process Quitclaim Deed - plat and legal bothers $782 (D-2) Process Real Property Agreement, License, or Easement Base Fee minimum charge) $1,075 Each Additional Hour after 2 hours $169 D-3 Right-of-way Research/Encroachment Resolution Fee Actual Expense D-4 Right of Ent /Encroachment Permit Fee $241 (E) MISCELLANEOUS District services provided for private sewer projects;interest rates for CCCSD programs;copying fees. (E-1) Engineering - private sewer projects Actual Expense (E-2) Soil evaluation - private sewer projects Actual Expense (E-3) Surveying Actual Expense (E-4) Minimum annual interest rate for CADs and Capacity Use Program 6.00% (E-5) Document/Plan Copying Fees 8 1/2"x 11"; 8 1/2"x 14"; 11"x 17" (per sheet) $0.15 24"x 36" Plan (per sheet) $3.00 CCCSD Standard Specifications $20.00 Multiplier to be applied to Alhambra Valley Assessment District(AVAD) 2010-11 (E-6) Parcel Assessment Amount listed in Ordinance 262-Exhibit B to determine AVAD 1.03361 Reimbursement Fee amounts applicable to connections in 2016-17. Multiplier to be applied to St. Mary's Road Contractual Assessment District(CAD) (E-9) 2011-1 Reimbursement Fees listed in Ordinance 279-Exhibit B. Applicable to 1.00827 connections in 2016-17. EXHIBIT A CENTRAL CONTRA COSTA SANITARY DISTRICT ENVIRONMENTAL AND DEVELOPMENT RATES & CHARGES FOR 2016-17 (uncodified) Fee Category Amount (F) INDUSTRIAL PERMIT FEES Permitting and inspection of industries and other commercial dischargers to ensure availability and use of pretreatment processes. Base permit fee of (F-1) Class I Fees $3,450 + cost of District's lab analysis Base permit fee of (F-2) Class II Fees $3,450+ cost of District's lab analysis F-3 Class III Fees $0 F4Industrial user permit application fee $0 (F-5) Special discharge permit application fee(*) No on-site inspection, no Capacity Review $330 On-site inspection $800 Additional charge for Capacity Review(Required for discharges >50 m $255 (G) SEPTAGE DISPOSAL (**) Sampling and disposal of septic waste and grease. G-1 Annual permit fee $1,865 (G-2) Residential septic/toilet waste <2,000 gallons $20+$0.15/gal >2,000 gallons $60+ $0.15/gal (G-3) Restaurant grease waste <2,000 gallons $20 + $0.02/ al >2,000 gallons $60+ $0.02/ a1 (*)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. 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. 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 Current Fee I Proposed Fee %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 $150 $160 6.7% for a change in use or expansion of a commercial facility,time in excess of one hour 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 $1,260 $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 $877 $937 6.8% 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) ISpecial Approvals $369 $393 6.5% 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 $420 $448 6.7% w/o trap;side sewer CIPP repair;outdoor grease trap only Manhole Alteration;trash enclosure with trap;grease interceptor abandonment $630 $672 6.7% Outside pump installation $840 $896 6.7% New Manhole or Rodding Inlet(private) $840 $896 6.7% ---j Grease/Sand/Oil Interceptor $1,260 $1,344 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% Revised:4/18/2016 Attach 1 -Env Dev Rates Comparison 2016-04-12.xlsx Page 2 ATTACHMENT 1 CENTRAL CONTRA COSTA SANITARY DISTRICT COMPARISON OF CURRENT& PROPOSED RATES&CHARGES FOR 2016-17 DRAFT Fee Category Application of Fee (B-5) 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 structure's 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 structure's 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 $840 per unit $896 per unit 6.7% 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 structure's roof is on and the rough $420 per unit $448 per unit 6.7% 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. 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 Current Fee I Proposed Fee %Change (C) COLLECTION SYSTEM SERVICES TV inspection of sewers conducted separate from a construction inspection activity,•verification of sewer location and sewer service connection. (C-1) TV Inspection: Weekday,hourly rate $254 $271 6.7% Minimum Charge(2 hr min) $508 $542 6.7% Overtime-First Hour $161 $167 3.7% Overtime-Each Additional Hour $127 $131 3.1% Overtime-Weekend/Holiday(4 hr min) $542 $560 3.3% (C-2) Dye test $318 $337 6.0% (C-3) Collection system repair Actual Expense Actual Expense no change (C-4) Cancelled TV Inspection without prior notice $464 $495 6.7% (C-5) Sewer locating and marking $288 1 $307 6.6% (D) RIGHT-OF-WAY Establishing right-of-way agreements and resolving conflicts. (D-1) Process Quitclaim Deeds $1,227 $1,309 6.7% Process Quitclaim Deed-plat and legal by others $731 $782 7.0% (D-2) Process Real Property Agreement, License,or Easement Base Fee(minimum charge) $1,008 $1,075 6.6% Each Additional Hour(after 2 hours) $158 $169 7.0% (D-3) Right-of-way Research/Encroachment Resolution Fee Actual Expense Actual Expense no change (D-4) Right of Entry/Encroachment Permit Fee $226 $241 6.6% (E) MISCELLANEOUS District services provided for private sewer projects;interest rates for CCCSD programs;copying fees. (E-1) Engineering-private sewer projects Actual Expense Actual Expense no change (E-2) Soil evaluation-private sewer projects Actual Expense Actual Expense no change (E-3) Surveying Actual Expense Actual Expense no change (E-4) Minimum annual interest rate for CADs and Capacity Use Program 6.00% 6.00% no change (E-5) Document/Plan Copying Fees 8 1/2"x 11"; 8 1/2"x 14'; 11"x 17"(per sheet) $0.15 $0.15 no change 24"x 36"Plan(per sheet) $3.00 $3.00 no change CCCSD Standard Specifications $20.00 $20.00 no change Multiplier to be applied to Alhambra Valley Assessment District(AVAD) 2010-11 (E-6) Parcel Assessment Amount listed in Ordinance 262-Exhibit B to determine AVAD 1.03084 1.03361 0.3% Reimbursement Fee amounts applicable to connections in 2016-17. Multiplier to be applied to St.Mary's Road Contractual Assessment District(CAD) (E-7) 2011-1 Reimbursement Fees listed in Ordinance 279-Exhibit B. Applicable to 1.00556 1.00827 0.3% connections in 2016-17. 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. Base permit fee of Base permit fee of (F-1) Class I Fees $3,450+cost of $3,450+cost of no change District's lab District's lab analysis analysis Base permit fee of Base permit fee of (F-2) Class II Fees $3,450+cost of $3,450+cost of no change District's lab District's lab analysis analysis (F-3) Class III Fees $0 $0 no change (F-4) Industrial user permit application fee $0 $0 no change (F-5) Special discharge permit application fee(*) No on-site inspection, no capacity review $312 $330 5.8% On-site inspection $750 $800 6.7% Additional charge for capacity review(Required for discharges>50 gpm) $239 $255 6.7% (G) SEPTAGE DISPOSAL(*") Sampling and disposal of septic waste and grease. (G-1) Annual permit fee $1,750 $1,865 6.6% (G-2) Residential septic/toilet waste <2,000 gallons $20+$0.15/gal $20+$0.15/gal no change >2,000 gallons $60+$0.15/gal $60+$0.15/gal no change (G-3) Restaurant grease waste <2,000 gallons $20+$0.02/gal $20+$0.02/gal no change >2,000 gallons 1 $60+$0.02/gal $60+$0.02/gal I no change (")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. Revised:4/18/2016 Attach 1 -Env Dev Rates Comparison 2016-04-12.xlsx Page 5 ATTACHMENT 3 ORDINANCE NO. 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 Capital Improvement Budget and Ten-year Capital Improvement Plan contained in the draft Central Contra Costa Sanitary District FY 2016-17 Budget, and the Staff Report on Proposed Capacity Fee Program dated April 15, 2016; 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 2, 2016, 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) per section 6.12.020 of the District Code. 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. 288 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. 288 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. Ordinance No. Page 3 of 3 Central Contra Costa Sanitary District 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, 2016. PASSED AND ADOPTED this 2nd day of June 2016, by the Board of Directors of the Central Contra Costa Sanitary District by the following vote: AYES: Members: NOES: Members: ABSENT: Members: Tad J. Pilecki 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..211 adopted June 2, 2016. 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, 2016 in accordance with the provisions of District Code Chapter 6.12. Gravity Capacity Fee 1 $5,948 / RUE* Pumping Capacity Fee 1 $1,608 / 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 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 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 LU Single-family residences Dwelling Unit 1.000 1.000 LA Multiple-family residences, apartments Dwelling Unit 0.847 0.847 LD Duplex Dwelling Unit 0.847 0.847 LM Mobile homes Dwelling Unit 0.847 0.847 LT Condominium Dwelling Unit 0.847 0.847 LS Second residential unit Dwelling Unit 0.847 0.847 (on same parcel with Single-family residence LC Common areas 1,000 sq. ft. 0.200 0.200 AB Auto body/painting 1,000 sq. ft. 0.484 0.467 AD Auto dealerships 1,000 sq. ft. 0.484 0.467 AL Aircraft services 1,000 sq. ft. 0.484 0.467 AR Auto repair/maintenance 1,000 sq. ft. 0.484 0.467 AS Service stations 1,000 sq. ft. 0.484 0.467 BT Transportation services 1,000 sq. ft. 0.432 0.467 AC Car washes 1,000 sq. ft. 21.127 22.829 Car washes with AW recycling 1,000 sq. ft. 3.522 3.805 (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. C:\Users\danderson\AppData\Local\Microsoft\Windows\Temporary Internet Files\Content.Outlook\IM9F5ZMU\6-02-16 Fees ATTACH 3 ORD xxx Exhibit A Capacity Fees Ord(2).docPage 1 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 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 Barbers/beauty salons / pet BB grooming 1,000 sq. ft. 0.725 0.783 BC Dry cleaners, no laundry 1,000 sq. ft. 0.259 0.279 BR Retail sales 1,000 sq. ft. 0.259 0.279 Equipment repair/ repair BE services 1,000 sq. ft. 0.228 0.247 Contractors/ business BK services 1,000 sq, ft. 0.228 0.247 BN Nurseries/ lumberyards 1,000 sq. ft. 0.228 0.247 IL Light industrial 1,000 sq. ft. 0.228 0.247 BH Meeting halls /studios 1,000 sq. ft. 0.290 0.313 EA Auditoriums /theaters 1,000 sq. ft. 0.290 0.313 EC Cinemas 1,000 sq. ft. 0.290 0.313 EM Entertainment 1,000 s . ft. 0.290 0.313 EB Bowling alleys 1,000 sq. ft. 0.311 0.336 BZ Miscellaneous commercial 1,000 sq. ft. 0.510 0.551 EG Golf courses/country clubs 1,000 sq. ft. 1.166 1.391 EH Health clubs /spas 1,000 sq. ft. 1.166 1.391 ET Tennis clubs 1,000 sq. ft. 1.166 1.391 IW Warehouses 1,000 sq. ft. 0.136 0.147 BM Markets 1,000 sq. ft. 0.556 0.601 BS Supermarkets 1,000 sq. ft. 0.880 0.601 BX Shopping centers 1,000 sq. ft. 1.057 1.142 OB Business offices 1,000 sq. ft. 0.295 0.319 OF Financial institutions/ banks 1,000 sq. ft. 0.295 0.319 OG Government offices 1,000 sq. ft. 0.295 0.319 OS Fraternal /service offices 1,000 sq. ft. 0.295 0.319 OM Medical offices 1,000 sq. ft. 0.637 0.688 OV Veterinary clinics 1,000 sq. ft. 0.637 0.688 RD Delicatessens 1,000 sq. ft. 1.166 1.294 RN Bars 1,000 sq. ft. 1.166 1.294 RI Ice cream parlors 1,000 sq. ft. 1.166 1.294 RY Yogurt shops 1,000 sq. ft. 1.166 1.294 RS Restaurants dine-in 1,000 sq. ft. 4.010 2.738 RT Restaurants take-out 1,000 sq. ft. 4.010 2.738 Banquet facilities/ patio RC seating 1,000 s . ft. 1.166 0.825 RB Bakeries retail 1,000 sq. ft. 4.061 2.178 BL Laundromats 1,000 sq. ft. 13.506 14.594 (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. C:\Users\danderson\AppData\Local\Microsoft\Windows\Temporary Internet Files\Content.Outlook\IM9F5ZMU\6-02-16 Fees ATTACH 3 ORD xxx Exhibit A Capacity Fees Ord(2).docPage 2 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 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 SF Skilled nursing facilities 1,000 s . ft. 2.216 2.347 Residential care facilities FE for the elderly 1,000 sq. ft. 0.932 0.987 HP Hospitals 1,000 sq. ft. 2.891 3.124 LH Hotels/ motels 1,000 sq. ft. 1.926 1.272 CH Churches 1,000 sq. ft. 0.242 0.261 Private and Public Schools Use codes SD, SE, SH, SI, SU 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 1 0.430 1 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. C:\Users\danderson\AppData\Local\Microsoft\Windows\Temporary Internet Files\Content.Outlook\IM9F5ZMU\6-02-16 Fees ATTACH 3 ORD xxx Exhibit A Capacity Fees Ord(2).docPage 3 of 5 SCHEDULE OF CAPACITY FEES, DATES 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 MO Mortuaries with embalming or cremation facilities 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 -- Improvements 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 mg/1 TSSRU = 215 m /I A = 0.69 B = 0.14 C = 0.17 C:\Users\danderson\AppData\Local\Microsoft\Windows\Temporary Internet Files\Content.Outlook\IM9F5ZMU\6-02-16 Fees ATTACH 3 ORD xxx Exhibit A Capacity Fees Ord(2).docPage 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. 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 $1,018.71 $ 5.49 AW Car washes with recycling 1.166 3.805 $ 120.24 $ 3.88 BL Laundromats 1.166 14.594 $ 629.77 $ 5.31 HP Hospitals 1.166 3.124 $ 88.04 $ 3.47 LH Hotel/Motel 1.166 1.926 $ 38.79 $ 3.75 RB Bakeries retail 1.166 2.178 $ 147.75 $ 8.34 RS Restaurants dine-in 1.166 2.738 $ 145.14 $ 6.52 RT Restaurants (paper 1.166 2.738 $ 145.14 $ 6.52 service / no dishwashers SF Skilled nursing facilities 1.166 2.347 $ 53.59 $ 2.75 The annual interest rate for calculation of capacity use charges shall be as established in the Schedule of Environmental and Development-Related Fees and Charges pursuant to the Provisions of Chapter 6.30 of the District Code. C:\Users\danderson\AppData\Local\Microsoft\Windows\Temporary Internet Files\Content.Outlook\IM9F5ZMU\6-02-16 Fees ATTACH 3 ORD xxx Exhibit A Capacity Fees Ord(2).docPage 5 of 5 ATTACHMENT 4 CENTRAL CONTRA COSTA SANITARY DISTRICT Report Regarding the Capacity Fee Update April 15, 2016 INTRODUCTION Central Contra Costa Sanitary District (CCCSD) charges a Capacity Fee when properties are first connected to our public sewer or when there is an expansion or change of use for non-residential properties. Each year this fee is updated based on changes to the value of our assets and the number of customers in the district. This memo summarizes the basis for the Capacity Fee and presents the calculations for the updated fee. BACKGROUND The total value of CCCSD's existing assets (approximately $1.7 billion) is much greater than the value of any future facilities expansion needed to accommodate future customers. While CCCSD's FY 2015-16 Capital Improvement Plan lists over $400 million in projects over the next ten years, most of these projects are for renovation, regulatory compliance, replacement or upgrading of facilities to maintain capacity for both current and prospective customers. CCCSD believes that our facilities generally have adequate capacity to serve both existing and future customers. The Water Environment Federation's (WEF) Manual of Practice 27, Financing and Charges for Wastewater Systems defines several methods for calculating System Development Charges such as CCCSD's Capacity Fee. CCCSD uses the Equity Buy-in method and has used this methodology since 2001. Under this approach, new customers are charged at the same equity position as existing customers which is appropriate based on the level of assets, expansion, and capacity described above. 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 defined by WEF and used by CCCSD conforms to the requirements contained in Section 66013. CALCULATION APPROACH The Capacity Fee is adjusted each year to reflect the changes in the value of CCCCD's assets. It is calculated using the equity buy-in approach which divides the value of CCCSD's assets by the current number of RUEs to determine the fee. The calculated value of CCCSD assets are determined as follows: • Land: The current value of investments in real property is estimated based on the opportunity value of like cash investments deposited in CCCSD's temporary investments at the time of each purchase and held at interest to the present, rather than by attempting to determine actual market value. Capacity Fee Update Report Page 2 April 15, 2016 • Facilities: The current value of investments in physical facilities is estimated by escalating each year's facilities expenditures based on the change in the Engineering News Record Construction Cost Index for the San Francisco Bay Area (ENR CCI-SF) and then applying straight-line depreciation using the life cycles in Table 3 with no salvage value. Note that a category for "Mains (Renovation Program)" is included in the current value of facilities for determination of Capacity Fees. This category accounts for CCCSD's significant investment since 1988 in life-cycle replacement and renovation of sewers 10-inches in diameter and smaller. This work renews capacity in these smaller sewers for the benefit of both existing and new connectors and reduces future maintenance costs. • Fund Balances: Prior fiscal year ending balances for the Sewer Construction, Running Expense, Debt Service and Self Insurance Funds are used. The Sewer Construction Fund Balance is reduced by the principal value of CCCSD's outstanding debt. Contributed assets are generally not included in the calculation in order to avoid double recovery of costs, as described in the WEF manual. After estimating the current value for an asset category, the component of the Capacity Fee attributable to that category is calculated by dividing current value by the current number of customers as shown below. The number of customers is determines by calculating the number of Residential Unit Equivalents (RUEs). Value of Assets Equity Buy-in Fee = ---------------------------------------- Number of Customers (RUEs) RECOMMENDED CAPACITY FEE Staff recommends that the Board adopt Capacity Fees for the 2016-17 fiscal year by applying the valuation approach and facilities life cycles described above. The updated fees are: Fee Category Current Proposed % Change Gravity Service $6,005 per RUE $5,948 per RUE -0.9% Pumping Service $7,655 per RUE $7,556 per RUE -1.2% The recommended fee calculation approach is a rational, practical, equitable and Capacity Fee Update Report Page 3 April 15, 2016 defensible method to determine the financial burden of new connections. A comparison of the proposed Capacity Fees to the fees charged by neighboring agencies is presented in Table 2. CENTRAL CONTRA COSTA SANITARY DISTRICT Report Regarding Capacity Fee Update Table 1-Capacity Fees Calculation-FY 2016-17 (Buy-in to all assets. Values through 06/30/2015) Value per FY 2015- Asset Category Asset Value' RUE 16 Value Change Change ($/RUE) per RUE ($) (%) Land $49,688,376 $295 $296 ($1) -0.3% Facilities Treatment Plant/Outfall(45%@ 100 yrs+20%@ 75 yrs+35%@ 30 y $327,558,560 $1,946 $1,968 ($22) -1.1% Recycled Water Facilities(75%@ 50 yrs+25%@ 30 yrs) $17,117,069 $102 $104 ($2) -1.9% Collection System Trunks and Interceptors(30%(M 150 yrs+70%@ 100 yrs) $311,725,750 $1,852 $1,895 ($43) -2.3% Contributed Mains(100%@ 75 yrs) $658,442,000 not included District Renovated Mains(100%(n 100 yrs) $180,958,337 $1,075 $1,044 $31 3.0% Pumping Stations(45%@ 100 yrs+20%@ 75 yrs+35%@ 30 yrs; $78,840,025 $1,618 3 $1,650 ($32) -1.9% General Improvements(Buildings,Equipment,etc.) $62,195,531 $369 $374 ($5) -1.3% (50%@ 50 yrs+35%@ 25 yrs+15%@ 10 yrs) Major Repairs(100%@ 10 yrs) $9,510,972 $57 $47 $10 21.3% Sewer Construction Fund Balance(net of outstanding debt) $19,988,451 $119 $188 ($69) -36.7% Running Expense Fund&Debt Service Fund Balances $17,079,944 $101 $68 $33 48.5% Self Insurance Fund Balance $5,408,722 $32 $21 $11 52.4% TOTAL VALUE: $1,738,513,738 CapacityFee-GravityService $1,001,231,712 $5,948 $6,005 ($57) -0.9% Capacity Fee-Pumped Service $1,080,071,738 $7,5664 $7,655 ($89) -1.2% 168,327 Total Residential Unit Equivalents(RUEs) 48,714 Pumped Zone RUEs Notes: 1.Original cost escalated to current dollars less depreciation except land which is original cost escated by opportunity cost 2.Asset value divided by total RUEs unless otherwise noted 3.Pumped component equals asset value divided by pumped zone RUEs 4.Gravity Service Capacity Fee plus pumped component 5/14/2015 CENTRAL CONTRA COSTA SANITARY DISTRICT Report Regarding the Capacity Fee Update Table 2 — Comparison of Capacity Fees AGENCY CAPACITY FEE Dublin San Ramon Services District $16,927 Mountain View Sanitary District $9,443 Current CCCSD Pumped Zone $7,665 Proposed CCCSD Pumped Zone $7,556 Antioch (Delta Diablo Sanitation District for Treatment) $7,314 Pittsburg (Delta Diablo Sanitation District for Treatment) $6,767 Current CCCSD Gravity Zone $6,005 Proposed CCCSD Gravity Zone $5,948 Concord $5,043 Bay Point (Delta Diablo Sanitation District for Treatment) $3,940 West County Wastewater District $2,993 CENTRAL CONTRA COSTA SANITARY DISTRICT Report Regarding the Capacity Fee Update Table 3 -Average Useful Service Life Gravity Sewers Interceptors 150 years Trunks 100 years Mains (Renovated by District) 100 years Treatment Plant & Pumping Station Facilities Tanks/Foundations 100 years Buildings 75 years Mechanical, Electrical & Control Equipment 30 years Recycled Water Facilities Pipelines 50 years Mechanical, Electrical & Control Equipment 30 years General Improvements Buildings 50 years Mechanical/Electrical Equipment and Furnishings 25 years Vehicles and other Equipment 10 years Major Repairs/Replacements 10 years 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. 28- adoptedI���,,,e 4, 215 June 2, 2016. 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 , 2015 2016 in accordance with the provisions of District Code Chapter 6.12. Gravity Capacity Fee $ 88-5 $5,948/ RUE* Pumping Capacity Fee $1,658 $1,608/ 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 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 Eligible for Gravity Pumping Capacity Capacity Capacity Use Charge Use Unit of Fee RUE Fee RUE Program Code User Group Measure(1,2) Factor Factor *=Yes LU Single-family residences Dwelling Unit 1.000 1.000 LA Multiple-family residences, apartments Dwelling Unit 0.847 0.847 LD Duplex Dwelling Unit 0.847 0.847 LM Mobile homes Dwelling Unit 0.847 0.847 LT Condominium Dwelling Unit 0.847 0.847 LS Second residential unit Dwelling Unit 0.847 0.847 (on same parcel with Single-family residence LC Common areas 1,000 sq. ft. 0.200 0.200 AB Auto body/painting 1,000 sq. ft. 0.484 1 0.467 AD Auto dealerships 1,000 sq. ft. 0.484 0.467 AL Aircraft services 1,000 sq. ft. 0.484 0.467 AR Auto repair/maintenance 1,000 sq. ft. 0.484 0.467 AS Service stations 1,000 sq. ft. 0.484 0.467 BT Transportation services 1,000 sq. ft. 0.432 0.467 AC Car washes 1,000 sq. ft. 21.127 22.829 Car washes with AW recycling 1,000 sq. ft. 3.522 3.805 (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. C:\Users\danderson\AppData\Local\Microsoft\Windows\Temporary Internet Files\Content.Outlook\IM9F5ZMU\6-02-16 Fees ATTACH 3 REDLINE ORD xxx Exhibit A Capacity Fees Ord.doc Page 1 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 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) Barbers/beauty salons/ pet BB grooming 1,000 sq. ft. 0.725 0.783 BC Dry cleaners, no laundry 1,000 sq. ft. 0.259 0.279 BR Retail sales 1,000 sq. ft. 0.259 0.279 Equipment repair/ repair BE services 1,000 sq. ft. 0.228 0.247 Contractors/ business BK services 1,000 sq. ft. 0.228 0.247 BN Nurseries/ lumberyards 1,000 sq. ft. 0.228 0.247 IL Light industrial 1,000 sq. ft. 0.228 0.247 BH Meeting halls/studios 1,000 sq. ft. 0.290 0.313 EA Auditoriums/theaters 1,000 sq. ft. 0.290 0.313 EC Cinemas 1,000 sq. ft. 0.290 0.313 EM Entertainment 1,000 sq. ft. 0.290 0.313 EB Bowling alleys 1,000 sq. ft. 0.311 0.336 BZ Miscellaneous commercial 1,000 sq. ft. 0.510 0.551 EG Golf courses/country clubs 1,000 sq. ft. 1.166 1.391 EH Health clubs/spas 1,000 sq. ft. 1.166 1.391 ET Tennis clubs 1,000 sq. ft. 1.166 1.391 IW Warehouses 1,000 sq. ft. 0.136 0.147 BM Markets 1,000 sq. ft. 0.556 0.601 BS Supermarkets 1,000 sq. ft. 0.880 0.601 BX Shopping centers 1,000 sq. ft. 1.057 1.142 OB Business offices 1,000 sq. ft. 0.295 0:319 OF Financial institutions/ banks 1,000 sq. ft. 0.295 0.319 OG Government offices 1,000 sq. ft. 0.295 0.319 OS Fraternal/service offices 1,000 sq. ft. 0.295 0.319 OM Medical offices 1,000 sq. ft. 0.637 0.688 OV Veterinary clinics 1,000 sq. ft. 0.637 0.688 RD Delicatessens 1,000 sq. ft. 1.166 1.294 RN Bars 1,000 sq. ft. 1.166 1.294 RI Ice cream parlors 1,000 sq. ft. 1.166 1.294 RY Yogurt shops 1,000 sq. ft. 1.166 1.294 RS Restaurants dine-in 1,000 sq. ft. 4.010 2.738 RT Restaurants take-out 1,000 sq. ft. 4.010 2.738 Banquet facilities/patio RC seating 1,000 sq. ft. 1.166 0.825 RB Bakeries retail 1,000 sq. ft. 4.061 2.178 BL Laundromats 1,000 sq. ft. 13.506 14.594 (1) Fees for multi-use buildings shall be determined by considering each use separately. C:\Users\danderson\AppData\Local\Microsoft\Windows\Temporary Intemet Files\Content.Outlook\IM9F5ZMU\6-02-16 Fees ATTACH 3 REDLINE ORD xxx Exhibit A Capacity Fees Ord.doc Page 2 of 5 (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. 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 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 SF Skilled nursing facilities 1,000 sq. ft. 2.216 2.347 Residential care facilities FE for the elderly 1,000 sq. ft. 0.932 0.987 HP Hospitals 1,000 sq. ft. 2.891 3.124 LH Hotels/ motels 1,000 s . ft. 1.926 1.272 CH Churches 1,000 sq. ft. 0.242 0.261 Private and Public Schools Use codes SD, SE, SH, Sl, SU 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. C:\Users\danderson\AppData\Local\Microsoft\Windows\Temporary Internet Files\Content.Outlook\IM9F5ZMU\6-02-16 Fees ATTACH 3 REDLINE ORD xxx Exhibit A Capacity Fees Ord.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 MO Mortuaries with embalming or cremation facilities 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 -- Improvements 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 C:\Users\danderson\AppData\Local\Microsoft\Windows\Temporary Internet Files\Content.Outlook\IM9F5ZMU\6-02-16 Fees ATTACH 3 REDLINE ORD xxx Exhibit A Capacity Fees Ord.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. 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 $1,028.48 $6.54 $1,018.71 $ 5.49 AW Car washes with recycling 1.166 3.805 $ iW '� $-a.92 $ 120.24 $ 3.88 BL Laundromats 1.166 14.594 $-635.84 $-6.36 $ 629.77 $ 5.31 HP Hospitals 1.166 3.124 $ 88.88 $-3.50 $ 88.04 $ 3.47 LH Hotel/Motel 1.166 1.926 $ 38.79 $ 3.75 RB Bakeries (retail) 1.166 2.178 $ i� - 49.16 $ 8.42 $ 147.75 $ 8.34 RS Restaurants (dine-in) 1.166 2.738 $ 146.54 $-6.58 $ 145.14 $ 6.52 RT Restaurants (paper 1.166 2.738 $ 146.54 $-6.58 service / no dishwashers) $ 145.14 $ 6.52 SF Skilled nursing facilities 1.166 2.347 $- 54.01 $-2.78 $ 53.59 $ 6.52 The annual interest rate for calculation of capacity use charges shall be as established in the Schedule of Environmental and Development-Related Fees and Charges pursuant to the Provisions of Chapter 6.30 of the District Code. C:\Users\danderson\AppData\Local\Microsoft\Windows\Temporary Internet Files\Content.Outlook\IM9F5ZMU\6-02-16 Fees ATTACH 3 REDLINE ORD xxx Exhibit A Capacity Fees Ord.doc Page 5 of 5 ATTACHMENT 5 Chapter 6.30 - SCHEDULE OF ENVIRONMENTAL AND DEVELOPMENT-RELATED RAT€SFEES-AND CHARGES 6.30.010 - Findings. The Board of Directors finds: A. That the District incurs substantial costs to provide various environmental and development-related services, such as, but not limited to, administration and processing of annexations, customer assistance at the permit counter, plan review and inspection for public main sewer line extensions and installation, alteration, replacement and repair of private side sewers, the addition of new sewers, parcels, and permit information to District maps, administration and inspection related to source control permit, permitting of septage and grease haulers, and treatment of grease and septage at the treatment plant; B. That it is necessary to charge customers and other users of District environmental and development-related services to recover the reasonable costs of providing said services; C. That District staff has comprehensively analyzed the actual costs of providing said services; D. That the ratesfees and charges listed in the schedule of environmental and development-related fatesfees and charges represent the reasonable cost of providing the services delineated; and E. That the fatesfees and charges collected pursuant to this chapter will not exceed the total of all actual costs reasonably allocable to provision of the services listed in the schedule of fatesfees and charges. (Ord. 263-_ § 1(c"" )), 29962016) 6.30.020 - Schedule of environmental and development-related ratesfees and charges. The schedule of environmental and development-related ratesfees and charges referenced herein shall be adopted by ordinance by the Board and kept on file with the District Secretary in an uncodified manner. Such schedule shall list, amongst other things, the amounts and times for payment of such ratesfees and charges. ATTACHMENT 6 ORDINANCE NO. 192- AN ORDINANCE OF THE CENTRAL CONTRA COSTA SANITARY DISTRICT REVISING DISTRICT CODE CHAPTER 6.30 WHEREAS, the Central Contra Costa Sanitary District (District) has determined that there is a need to update certain provisions within Chapter 6 of the District Code; and WHEREAS, a public hearing was noticed pursuant to Government Code Sections 50022.3 and 6066 for June 6, 2016 at 2:00 p.m. at the District Board of Directors Regular Meeting scheduled for that date; and WHEREAS, a properly noticed public hearing was held on June 6, 2016 where all interested parties were given an opportunity to be heard, and thereupon the public hearing was closed; and WHEREAS, the District Counsel has reviewed these proposed Code revisions and concluded that adoption of these Code modifications does not constitute a California Environmental Quality Act (CEQA) Project as defined under Title 14 of California Code of Regulations; specifically it does not constitute a Project pursuant to §§ 15378(b)(2), (4) and (5) because: i) this action is continuing administrative in nature, and deals with general policy and procedure making; and ii) it does not create any governmental funding mechanism or fiscal activity involving a commitment to any specific project; and iii) it is an organizational and administrative activity that will not result in any direct or indirect changes to the environment; and WHEREAS, the Board of Directors duly considered all oral and documented evidence. NOW, THEREFORE, the Board of Directors of the Central Contra Costa Sanitary District does ordain as follows: 1. Amendments to Chapter 6.30 Former Chapter 6.30 of the District Code, entitled "Schedule of Environmental and Development-Related Rates and Charges," is hereby modified and retitled "Schedule of Environmental and Development-Related Fees and Charges," and further modified as set forth below. Ordinance No. ,?q2 Page 2 of 3 Central Contra Costa Sanitary District 2. Amendment of Section 6.30.010 The following section of the District Code shall be amended to read as follows: Section 6.30.010 — Findings. The Board of Directors finds: A. That the District incurs substantial costs to provide various environmental and development-related services, such as, but not limited to, administration and processing of annexations, customer assistance at the permit counter, plan review and inspection for public main sewer line extensions and installation, alteration, replacement and repair of private side sewers, the addition of new sewers, parcels, and permit information to District maps, administration and inspection related to source control permit, permitting of septage and grease haulers, and treatment of grease and septage at the treatment plant; B. That it is necessary to charge customers and other users of District environmental and development-related services to recover the reasonable costs of providing said services; C. That District staff has comprehensively analyzed the actual costs of providing said services; D. That the fees and charges listed in the schedule of environmental and development-related fees and charges represent the reasonable cost of providing the services delineated; and E. That the fees and charges collected pursuant to this chapter will not exceed the total of all actual costs reasonably allocable to provision of the services listed in the schedule of fees and charges. 3. Amendment of Section 6.30.020 The following section of the District Code shall be amended to read as follows: 6.30.020 - Schedule of environmental and development-related fees and charges. The schedule of environmental and development-related fees and charges referenced herein shall be adopted by ordinance by the Board and kept on file with the District Secretary in an uncodified manner. Such schedule shall list, amongst other things, the amounts and times for payment of such fees and charges. Ordinance No. 9 z Page 3 of 3 Central Contra Costa Sanitary District 4. Finding of No "Project" The District Board's action in adopting the proposed Code revisions does not constitute a Project as envisioned by CEQA, as this action is consistent with defined circumstances which do not constitute a Project pursuant to the provisions of Title 14 §§ 15378(b)(2), (4) and (5). 5. Effective Date 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, 2016. 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 2nd day of June, 2016, by the following vote: AYES: Members: NOES: Members: ABSTAIN: Members: Tad J. Pilecki 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 ATTACHMENT 7 FEE UPDATES AND DISTRICT CODE CHANGE M. f; Thomas Brightbill June 2, 2016 • Annual update of Environmental and Development-related Rates and Charges • Annual update of Capacity Fees • District Code change 1 05/27/16 ENVIRONMENTAL AND DEVELOPMENT- RELATED RATES AND CHARGES • Designed to cover the District's costs for providing these services • Annual adjustment for changes in salaries, benefits, overhead, and mileage • Most increases between 4.2% and 7.3% • Would result in approximately $100,000 in additional revenue if approved CAPACITY FEE UPDATE • One-time "buy-in" fee charged at time of connection or expansion • Capacity Fee = Value of District Assets Number of Residential Unit Equivalents (RUEs) • Proposed adjustments • decrease gravity zone fee 0.9% to $5,948/RUE • decrease pumped zone fee 1 .2% to $7,556/RUE • Would result in approximately <$60,000> less revenue if approved 2 05/27/16 PUBLIC OUTREACH • Public Hearing notices posted and published • Outreach packets with both fee reports mailed to over 500 stakeholders including the BIA, developers, engineers, and contractors • Informational meeting held May 20, 2016 • No comments received from stakeholders PROPOSED DISTRICT CODE CHANGE • District Code Section 6.30 references the Schedule of Environmental and Development-related Rates and Charges • "Rates" frequently used for annual sewer service charge • Staff proposing to change "rates and charges" in Section 6.30 to "fees and charges" 3 05/27/16 QUESTIONS, COMMENTS AND DISCUSSION 4