HomeMy WebLinkAbout06.a. Public hearing re adopting Ordinance No. 294 establishing a schedule of SSC rates for Fiscal Years 2017-19 Central San 6.a.
BOARD OF DIRECTORS
POSITION PAPER
Board Meeting Date: April 20, 2017
Subject: CONDUCT A PUBLIC HEARING TO RECEIVE COMMENT AND
CONSIDER ADOPTING AN UNCODIFIED ORDINANCE ESTABLISHING
A SCHEDULE OF SEWER SERVICE CHARGE RATES IN
ACCORDANCE WITH DISTRICT CODE CHAPTER 6.24.030
Submitted By: Initiating DeptJDiv.:
Danea Gemmell, Planning & Development Engineering & Technical Services 1
Services Division Manager Planning & Development Services
REVIEWED AND RECOMMENDED FOR BOARD ACTION:
P. Leber—Director of Finance and Administration
JM. Petit'—Director of Engineering &Technical Services
Kenton L.Alm Roger S.Bailey
Counsel for the Distri t General Manager
ISSUE: An uncodified ordinance passed by four affirmative votes is needed to increase
the annual Sewer Service Charge (SSC). District Code and State law require that a
public hearing be held before such an ordinance may be adopted.
BACKGROUND: On June 4, 2015, the Board accepted and approved a
comprehensive Wastewater Cost of Service Study (COSS), whose purpose was to
assess the cost of providing service to customer classes within the District and design
rates to equitably recover these costs. The study resulted in recommendations to
create a new multi-family SSC rate and several changes to non-residential SSC rates
based on the strength and flow characteristics of those user groups and the District's
cost to provide service to those groups. At the same June 4, 2015 meeting, the Board
approved a two-year rate, based on the COSS which resulted in Central San's current
SSC of $503 annually for single family residences and $487 annually for multi-family
residences.
In the past year and a half, Central San has developed a Comprehensive Wastewater
Masterplan (CWMP) to identify costs for capital improvements over the next twenty
years; the CWMP was broken into three phases covering the first five-year period,
second five-year period and the remaining ten-year period. Four drivers were identified:
(1) replacement of aging infrastructure to maintain performance and reliability;
(2) capacity of existing facilities to accommodate planned growth for the communities
served; (3) impact of future regulations to protect human health and the environment;
and (4) sustainability of infrastructure through optimization resiliency, resource recovery
and energy.projects. These drivers were used to identify projects in the CWMP over the
twenty-year period.
POSITION PAPER
Board Meeting Date: April 20, 2017
Subject: CONDUCT A PUBLIC HEARING TO RECEIVE COMMENT AND
CONSIDER ADOPTING AN UNCODIFIED ORDINANCE ESTABLISHING
A SCHEDULE OF SEWER SERVICE CHARGE RATES IN
ACCORDANCE WITH DISTRICT CODE CHAPTER 6.24.030
Over the past year, the Board has held a series of workshops related to the 10-Year
Capital Improvement Program and rate setting. On June 16, 2016, a workshop was
held to update the Board on treatment plant projects. On October 6, 2016, a workshop
was held to update the Board on necessary investment for collection system projects.
The projects identified in the CWMP provide a substantial basis for capital costs that will
be required for replacement and for meeting regulatory requirements over the future
years. In addition to the workshops, other planning documents have outlined the goals,
objectives, metrics and overall services provided by Central San, as ►►yell as the level of
resources needed to provide such services. These documents include the staffing plan,
COSS, and Fiscal Years (FY) 2016-18 Strategic Plan.
The Board began deliberation on the rate increase at the November 10, 2016
Financial Update and Potential Rate Impacts from the CWMP Workshop. A Business
Customer Workshop was held on November 16, 2016 at the Pleasant Hill community
Center, during which Central San's financial outlook, current/future infrastructure
improvements and the vision for meeting future needs of customers were discussed.
The Board continued its rate scenario discussion at the January 26, 2017 Board
Workshop and provided for a 7 percent annual increase in each of the next two fiscal
years. The first residential customer workshop was conducted on the evening of
February 8, 2017 in the Tri-Valley area. The second residential customer workshop
was held on the evening of February 15, 2017 in the Lamorinda area.
The Proposition 218 Notice, notifying customers of 7 percent annual rate increases for
the next two fiscal years, was approved by the Board on February 16, 2017, and mailed
to Central San's ratepayers shortly thereafter. The rate hearing was scheduled for
April 20, 2017. The FY 2017-18 Budget hearing will be handled separately and is
scheduled for June 1, 2017.
Legal notices were published on April 6 and April 13, 2017, in the Contra Costa Times
and the San Ramon Valley Times for this public hearing.
ALTERNATIVESICONSIDERATIONS: The Board could consider keeping the SSC at
the current rate, or it could choose to increase the SSC by another amount.
The recommended rate increase spans a two-year period. The draft Ordinance
attached to this Position Paper contains an optional Section 3 (highlighted in yellow)
.which would require the holding of a public hearing prior to imposing the second-year
rate increases for single-family and multi-family residences. This would provide staff the
opportunity to present updated financial scenarios, which may or may not support
imposition of the full 7 percent rate increase for FY 2018-19. Once the public hearing
Page 2 of 4
POSITION PAPER
Board Meeting Date: April 20, 2 017
Subject: CONDUCT A PUBLIC HEARING TO RECEIVE COMMENT AND
CONSIDER ADOPTING AN UNCODIFIED ORDINANCE ESTABLISHING
A SCHEDULE OF SEWER SERVICE CHARGE RATES IN
ACCORDANCE WITH DISTRICT CODE CHAPTER 5.24.030
has been held, the Board"will deliberate, after which it must decide on one of the
following options: (1) take no action, which will confirm the 7 percent increase, or
alternatively, (2) adopt a resolution (by majority vote) fixing the rate at an amount less
than 7 percent. Staff recommends that Board adopt the draft ordinance with Section 3
included.
FINANCIAL IMPACTS: The proposed rate increases of 7 percent annually for the next
two years would generate approximately $12.1 million in additional revenue over the
two-year period. The additional revenue would be directed towards anticipated cost
increases in both the Operations & Maintenance (O&M) budget of about $7.4 million
over two years, and the capital budget and debt service of about $8.2 million over two
years. changes in fund balances account for the difference between the $12.1 million
revenue and the $15.5 million of increased spending on O&M, capital, and debt service.
While most of the increases in O&M costs are driven by anticipated changes in labor
costs, these costs are subject to the yet-to-be-negotiated labor contracts that will
replace those expiring later this year. To the extent cost savings are achieved, those
savings could be reflected in the FY 2018-19 Budget. The 7 percent rate increase for
FY 2018-19 could be revised a year from now, and adjusted downward.
COMMITTEE RECOMMENDATION: This matter was not reviewed by a Board
Committee.
RECOMMENDED BOARD ACTION: Conduct a public hearing to receive comment
and consider adopting a proposed uncodified ordinance increasing the annual SSC for
residential and non--residential customers for FY 2017-18 and FY 2018-19 consistent
with the chart below, representing 7 percent rate increases for each of the next two
years:
FY 2017-18 FY 2018-19
Increase Annual SSC Increase Annual SSC
Single Family Residences $35 $538 $38 $576
Multi-Family Residences $34 $521 $37 $558
(Residential rates shown in dollars per residential unit)
Effective Date July 1, 2017 July 1, 2018
Non-residential As shown in the Proposition 218 Notice mailed to
property owners and Attachment 1.
(Continued next page.)
Page 3 of 4
POSITION PAPER
Board Meeting Date: April ZO, 2017
Subject CONDUCT A PUBLIC HEARING TO RECEIVE COMMENT AND
CONSIDER ADOPTING AN UNCODIFIED ORDINANCE ESTABLISHING
A SCHEDULE OF SEWER SERVICE CHARGE RATES IN
ACCORDANCE WITH DISTRICT CODE CHAPTER 6.24.030
1. Find that there was not a majority protest; and
2. Adopt the attached proposed uncodified ordinance. (Four affirmative votes are
required for adoption.)
Attached Supporting Documents:
1. Proposed Ordinance
2. PowerPoint Presentation
Page 4 of 4
ATTACHMENT 1
ORDINANCE NO. 294
AN UNCODIFIED ORDINANCE OF THE
CENTRAL CONTRA COSTA SANITARY DISTRICT
ADOPTING A SCHEDULE OF SEINER SERVICE CHARGE RATES
IN ACCORDANCE WITH DISTRICT CODE CHAPTER 6.24.030
WHEREAS, the Central contra Costa Sanitary District (Central San) has previously
developed and instituted a Sewer Service Charge Program to finance the services and
facilities furnished by Central San, and
WHEREAS, it is reasonable and necessary that all users of Central San'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 Central San services
and facilities; and
WHEREAS, central San's Board of Directors has reviewed the current Schedule of
Sewer Service Charge Rates and has determined that the annual residential sewer
service charge rate should be increased by $35 per single family living unit to $538, and
$34 per multifamily living unit to $521 for Fiscal Year (FY) 2017-18, and $38 per single
family living unit to $576, and $37 per multifamily living unit to $558 for FY 2018-19, and
that non-residential sewer service charge rates should be increased proportionally
similar amounts as the single family service charge rate as set forth below in Exhibit A;
and
WHEREAS, chapter 6.24.030 of District Code provides the enabling authority for
Central San to implement the proposed uncodified Schedule of Sewer Service Charge.
Rate$; and
WHEREAS, a properly noticed public hearing to receive comments and protests and to
consider the proposed uncodified Schedule of Sewer Service Charge Rates was held
on April 20, 2017; and
WHEREAS, in adopting this ordinance, the Board of Directors finds that:
a. Written notices of the proposed increase in sewer service charge rates were sent
by first class U.S. mail to parcel owners who receive sewer service from central
San, using data provided by contra Costa County Assessor's Office, at least 45
days prior to the Public Hearing on the proposed increase conducted on April 20,
2017.
b. All legally valid protests against the proposed increase in the sewer service
charge rates, including those provided in person, by facsimile, e-mail and
U.S. mail, were considered and tallied at the Public Hearing conducted on
April 20, 2017, and Central San was not presented with protests by a majority of
the owners of the identified parcels affected by this change.
Central Contra Costs Sanitary District
Ordinance No. 294
Page 2 of 3
d. The amount of the charge imposed does not exceed the proportional cost of the
service attributable to the properties receiving service and the charge is only
imposed on those properties actually receiving service or for those which service
is immediately available.
e. This action is categorically exempt from the California Environmental Quality Act
(CEoA) pursuant to Section 15273 (a) (1-4) of the District CEQA Guidelines.
NOW, THEREFORE, the Board of Directors of Central San does ordain as follows:
Section 1 (To be Uncodified}
The "Schedule of Sewer Service Charge Rates" as set forth in full in Exhibit "A" to this
Ordinance, which exhibit is incorporated in full herein by this reference, is hereby
adopted in uncodified form pursuant to the provisions of District Code Section 6.24.030.
As of the effective date of this Ordinance, Sewer Service Charges shall be charged at
such rates and for such categories of users as set forth in said Schedule, and shall
remain in effect until amended or replaced by ordinance.
Section 2
All ordinances, parts of ordinances and any provision of Ordinance No. 285 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 the sewer service charge rates or any portion thereof is
determined invalid or unconstitutional, or during any period where the new rates are
stayed due to a legal challenge, such portions of Ordinance No. 285 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. 285 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.
Section 3
Prior to imposing the rate set forth under this Ordinance for Fiscal Year 2018-19, the
Board of Directors shall consider, at a noticed public hearing, the District's proposed
budget, its financial condition, projected capital and operations and maintenance costs,
as well as other factors which bear on the revenue requirements of the District, before
June 30, 2018, to determine whether the increased amount set forth herein for Fiscal
Central Contra Costs Sanitary District
Ordinance No. 294
Page 3 of 3
Year 2018-19 is still necessary. If the District Board concludes by a majority vote that
sewer service charges for less than the amount set forth in this Ordinance for Fiscal
Year 2018-19 will produce adequate revenues for that fiscal year, the Board may by
resolution fix the Fiscal Year 2018-19 sewer service charges to be imposed at
appropriate amounts up to the maximum of the rates set forth herein without an
amendment of this Ordinance. In such case, the resolution shall clearly set forth such
lesser charges that are to be imposed and those charges shall remain in place until
further action of the Board. If the Board determines the rates set forth in the table are
appropriate for imposition in Fiscal Year 2018-19, no further action of the Board shall be
required.
Section 4
This Ordinance shall be a general regulation of Central San and shall be published once
in the Contra Costa Times and San Ramon Valley Times, newspapers of general
circulation within Central San, and shall be effective on July 1, 2017. This Ordinance
shall be kept on file with the Secretary of the District.
PASSED AND ADOPTED by the Board of Directors of Central San on the 201" day of
April 2017, by the following vote:
AYES: Members:
NOES: Members:
ABSTAIN: Members:
Paul H. Causey, P.E.
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 Sewer Service Charge Rates (Uncodified)
This schedule of Sewer Service Charges (to be effective July 1, 2017), was established
by Central Contra Costa Sanitary District ordinance No. 294, adopted April 20, 2017.
User Gran Fiscal Year Fiscal Year Fiscal Year
p 2018-17 2017-18 2018-19
Residential (rate per Residential-Unit):
Single Family Dwellings, Mobile Homes $503.00 $538.00 $578.00
Apartments, Condominiums, Duplexes, Second Living Units, $487.00 $521.00 $558.00
Mobile Homes
Commercial I Non-industrial (rates per hundred cubic feet):
Standard Commercial Rate for Users Not Listed Below $4.98 $5.33 $5.71
Automotive $5.73 $5.13 $5.58
Bakeries $13.22 $14.14 $15.14
Hotels l Motels $8.84 $9.24 $9.89
Supermarkets $9.34 $9.99 $10.70
Mortuaries $11.47 $12.27 $13.14
Restaurants $9.34 $9.99 $10.70
Minimum Annual Charge $504.00 $535.00 $575.00
Industrial (rates per unit specified):
Wastewater Flow (per hundred cubic feet) $3.87 $3.93 $4.21
Biochemical oxygen Demand (per 1,000 pounds) $1,218.00 $1,300.61 $1,392.47
Suspended Solids (per 1,000 pounds) $567.00 $608.45 $549.28
Fixed $87.23 $93.30 $99.89
Minimum Annual Charge $504.00 $538.00 $575.00
Determined Determined Determined
Special Discharge Permits&Contractual Agreements: Ind-ividually Individually Individually
.Central Contra Casts Sanitary District
Exhibit A to Ordinance No. 294
Page 2 of 3
Schedule of Sewer Service Charge Rates (continued)
Fiscal Year Fiscal Year Fiscal Year
User Group 2016-17 2017-18 2018-19
Mixed Use (for parcels with shared water meter; rates per hundred cubic feet):
Rate Group xA: (90-99% Standard Commercial; 1-10% Restaurant) $5.32 $5.69 $6.09
Rate Group CCB: (80-89% Standard Commercial; 11-20% Restaurant) $5.77 $6.17 $8.51
Rate Group SCC: (70-79%Standard Commercial; 21-30% Restaurant) $6.23 $6.66 $7.13
Rate Group XD: (60-69% Standard Commercial; 31-40% Restaurant) $6.67 $7.13 $7.63
Rate Group XE: (50-59% Standard Commercial; 41-50% Restaurant) $7.12 $7.62 $8.16
Rate Group XF: (40-49% Standard Commercial; 51-60% Restaurant) $7.56 $8.09 $8.66
Rate Group SCG: (30-39%Standard Commercial; 61-70% Restaurant) $8.61 $8.57 $9.18
Rate Group xH: (20-29%Standard Commercial; 71-80% Restaurant) $8.45 $9.04 $9.68
Rate Group XI: (10-19% Standard Commercial; 81-90% Restaurant) $8.91 $9.53 $19.20
Rate Group XJ: (31-35%Standard Commercial; 65-69% Bakery) $10.69 $11.43 $12.24
Rate Group xK: (21-30% Standard Commercial; 70-79% Bakery) $10.32 $11.04 $11.82
Rate Group XL: (16-20% Standard Commercial; 80-84% Bakery) $10.92 $11.68 $12.54
Rate Group xM: (11-15% Standard Commercial; 85-89% Bakery) $11.26 $12.04 $12.89
Rate Group xN: (5-10% Standard Commercial; 90-95% Bakery) $11.54 $12.34 $13.21
Rate Group x0: (10-15% Restaurant; 85-90% Bakery) $11.69 $12.50 $13.38
Minimum Annual Charge $504 $538.00 $575.00
Central Contra Costs Sanitary District
Exhibit A to Ordinance No. 294
Page 3 of 3
Schedule of Sewer Service charge Rates (continued)
Fiscal Year Fiscal Year Fiscal Year
User Group 2016-17 2017-18 2018-19
Institutional (rates per hundred cubic feet unless otherwise noted):
Churches $4.98 $5.33 $5.71
Schools (Daycare, Preschool, University) $4.98 $5.33 $5.71
Schools (Elementary) $6.19 per $6.62 per $7.09 per
student student student
Schools (Intermediate) $12.16 per $13.01 per $13.93 per
student student student
Schoolsh School) $12.16 per $13.01 per $13.33 per
Schools ( 9 student student student
Fraternal &Service organizations $4.98 $5.33 $5.71
Local & State Institutions $4.98 $5.33 $5.71
Other Tax Exempt (Except Federal) $4.98 $5.33 $5.71
Federal Institutions $4.98 $5.33 $5.71
Utilities with Special Tax Status $4.98 $5.33 $5.71
Independent Living Facilities, Rest Homes, &Convalescent Hospitals $4.98 $5.33 $5.71
Minimum Annual Charge $504.04 $538.00 $575.00