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Home My WebLink About06.b. Conduct a public hearing to receive comment and consider adopting Uncodified Ordinance No. 295 establishing a schedule of recycled water charges in accordance with District Code Chapter 6.38 increasing the Recycled Water Charge for recycled water c Central Say 6mbo BOARD OF DIRECTORS POSI N 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 RECYCLED WATER CHARGES" IN ACCORDANCE WITH DISTRICT CGDE CHAPTER 6.38 Submitted By: Initiating Dept.IDiv.: Danea Gemmell, Planning and Engineering & Technical Services l Development Services Division Manager Planning & Development Services REVIEWED AND RECOMMENDED FOR BOARD ACTION: P. Leiber--Director of Finance and Administration JM. Petit—Director of Engineering &Technical Services Kenton L.Alm Roger S. Baile Counsel for the District General Manager ISSUE: An uncodified ordinance passed by four affirmative votes is needed to increase the charges for recycled water. District Code and State law require that a public hearing be held before such an ordinance may be adopted. BACKGROUND: Chapter 8.38 of the District Code includes provisions for the Board to adopt an uncodified schedule of rates and charges for recycled water and provides for annual increases of three percent. Retail rates for recycled water were initially set lower than potable water rates to encourage use. District Code currently contains provisions for three percent annual adjustments. Historically, this adjustment has allowed Central San to pass along some of the increased cost of treating and distributing recycled water while remaining below both the potable water rate and the cost of recycled water production and distribution. Staff has reviewed the proposed three percent increases and determined that these increases result in rates that are still below Central San's production and distribution costs. Revenues and expenses associated with the Recycled Water Program were reviewed at the November 10, 2016 Board Workshop and direction was given at the January 28, 2017 Board Workshop to proceed with a Proposition 218 notification for a three percent increase in retail charges for recycled water for each of the next two fiscal years. Notices of the public hearing were mailed to property owners whose parcels are either currently or could reasonably be served by Central San's recycled water pipelines. Legal notices were published on April 8 and April 13, 2017, in the Contra Costa Times and the San Ramon Valley Times for this public hearing. Page 1 of 2 POSITION PAPER Board Meeting Date: April 2 g, 2017 Subject: CONDUCT A PUBLIC HEARING TO RECEIVE COMMENT AND CONSIDER ADOPTING AN UNCODIFIED ORDINANCE ESTABLISHING A "SCHEDULE OF RECYCLED WATER CHARGES" IN ACCORDANCE WITH DISTRICT CGDE CHAPTER 6.88 Only customers who currently receive recycled water from Central San's recycled water distribution system are required to pay the recycled water charges. ALTERNATIVES/CONSIDERATIONS: The Board could consider keeping the retail charges for recycled water at the current rates, or it could choose to increase the rates by another amount. FINANCIAL IMPACTS: The proposed charges are designed to recover Central San's costs incurred and treating and distributing recycled water. Central San proposes a three percent recycled water rate increase each year for the next two years as shown in the table below: MAXIMUM MAXIMUM CURRENT RATE PROPOSED RATE PROPOSED RATE USER CROUP (per thousand EFFECTIVE EFFECTIVE gallons) JULY 1, 2017 JULY 1,2018 (per thousandgallons) (per thousandgallons) Class I former potable $3.48 $x.58 $3.6g users) Class Il former canal/well $1.66 $1.71 $'1.75 users 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 ordinance to establish an uncodified "Schedule of Recycled Water Charges". Upon conclusion of the public hearing, adopt the attached proposed uncodified ordinance, which includes the following findings: Central Ban incurs substantial costs to provide recycled water. * It is necessary to charge customers to recover the reasonable cost of providing the recycled water. The proposed charges do not exceed the actual Central San costs to provide the recycled water. The proposed charges are exempt from the California Environmental Quality Act (CEQA). There was not a majority protest. (Four affirmative votes are required for adoption.) Attached Supportinq Documents: 1. Proposed Ordinance: schedule of Recycled water Charges (Uncodified) 2. PowerPoint Presentation Page 2 of 2 ATTACHMENT 1 ORDINANCE NO. 296 AN UNCODIFIED ORDINANCE OF THE CENTRAL CONTRA COSTA SANITARY DISTRICT ADOPTING A SCHEDULE OF RECYCLED WATER CHARGES IN ACCORDANCE WITH DISTRICT CODE CHAPTER 6.38 WHEREAS, the central contra Costa Sanitary District (Central San) has previously developed and instituted Recycled Water Charges to finance the recycled water furnished by central San, and WHEREAS, it is reasonable and necessary that all users of central San's recycled water contribute their appropriate portion of the funding for the production of recycled water and the operation, maintenance, and periodic replacement of central San's recycled water facilities; and WHEREAS, Central San's Board of Directors has reviewed the current Schedule of Recycled Water charges and has determined that the annual recycled water charges should be increased by 3% for fiscal year 2017-18 and 3% for fiscal year 2018-19 charges; and WHEREAS, Chapter 6.38 of District code provides the enabling authority for Central San to implement the proposed uncodified Schedule of Recycled Water Charges; and WHEREAS, a properly noticed public hearing to receive comments and protests and to consider the proposed uncodified schedule of Recycled Water Charges was held on April 20, 2617; and WHEREAS, in adopting this Ordinance, the Board of Directors finds that: a. Written notices of the proposed increase in recycled water charges were sent by first class U.S. mail to every owner of property that is connected or could reasonably be connected to the recycled water distribution system at least 46 days prior to the public hearing on the proposed increase conducted on April 20, 2617. b. All written protests against the proposed increase in the recycled water charges, including those provided in person, by facsimile, email and U.S. mail, were considered and tallied at the public hearing conducted on 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. c. The amount of the charge imposed does not exceed the proportional cast of the service attributable to the properties receiving recycled water and the charge is only imposed on those properties or users actually receiving recycled water. Central Contra Costa Sanitary District Ordinance No. 295 Page 2of3 d. This action is categorically exempt from the California Environmental Quality Act (CEQA) pursuant to section 15273 (a) (1-4) of Central San CEQA Guidelines. NOW, THEREFORE, the Board of Directors of Central San does ordain as follows: Section 1 (To be Uncod if i�� The "Schedule of Recycled Water Charges" as set forth in this Ordinance is hereby adopted in uncodified form pursuant to the provisions of District Code Section 8.38. Schedule of Recycled Water charges MAXIMUM MAXIMUM CURRENT RATE PROPOSED RATE PROPOSED RATE USER GROUP (per thousand EFFECTIVE EFFECTIVE gallons) JULY 1, 2017 JULY 19 2018 er thousand gallons er thousandgallons) Class ! former potable $3.48 $3.58 $3.6g users) Class II former canal/well $1.66 X1.71 X1.78 users) As of the effective date of this ordinance, Recycled Water 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. 288 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 recycled water charge rates or any portion thereof are determined invalid or unconstitutional, or during any period where the new rates are stayed due to a legal challenge, 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. Central contra Costa Sanitary District Ordinance No. 295 Page 3 of 3 Section 3 This Ordinance shall be a general regulation of Central San and shall be published once in the Contra Costa Times and San Ramon Malley 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 20th 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, CIVIC Secretary of the District Central Contra Costa Sanitary District County of Contra costa, State of California Approved as to form: Kenton L. Alm, Esq. Counsel for the District