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Home My WebLink About07. Review proposed Capacity Fees for Fiscal Year 2017-18 Central San 7m BOARD OF DIRECTORS .......... PSI T1O N PAIS ER 'Board Meeting Date: May 4, 2017 Subject: ESTABLISH JUNE 1 , 2017 AT 1:30PM AS THE DATE AND TIME FOR A PUBLIC HEARING REGARDING A PROPOSED ORDINANCE TO AMEND THE SCHEDULE OF CAPACITY FEES Submitted By: Initiating Dept./Div.: Thomas Brightbill, Senior Engineer Engineering & Technical Services Planning & Development Services REVIEWED AND RECOMMENDED FOR BOARD ACTION: D. Gemmell— Planning & Development Svcs Division Mgr. JM. Petit— Director of Engineering & Technical Services K.Alm Roger S. Bailey Counsel for the District General Manager ISSUE: State Law and District Code require that a public hearing be held prior to the Board of Directors' consideration of amendments to the Schedule of Capacity Fees. BACKGROUND: Staff has completed its annual review of Central San's Capacity Fee Program and has concluded that it would be appropriate to revise the fees to account for changes in the valuation of Central San's assets and the number of current customers. The effect of implementing the staff recommendation would be to change Capacity Fees as follows: Fee Category Current Proposed % Chan Gravity Zone Fee $5,948 per RUE $6,300 per RUE 5.9 % Pumping Zone Fee $7,556 per RUE $7,939 per RUE 5.1 % Staff alsoproposes to conduct a public hearing on a related recommendation to revise the Schedule of Environmental and Development-Related Rates and Charges at the same June 1, 2017 Board Meeting. ALTERNATIVES/CONSIDERATIONS: The Board of Directors may decline to establish the recommended public hearing date or may elect to choose a different date; however, apublic hearing must be held if Capacity Fees are to be revised. If the hearing is held on June 1, 2017, the increased fees could take effect on July 1, 2017. COMMUNITY OUTREACH: A coordinated outreach program to inform and solicit input from interested customers (including the Building Industry Association of the Bay Area) regarding both the proposed Capacity Fees and the proposed Environmental and Development-Related Rates and Charges will be conducted by staff before the public hearing date. C:\Users\CGranzella\AppData\Local\Microsoft\Wlndows\Temporary Internet F iles\Conte nt.Outlook\[FG8EC 1 1\5-4-17 PP to SET public hearing Cap Fees DRAFT.docx Page 1 of 2 POSITION PAPER Board Meeting Date: May 4, 2017 Subject: ESTABLISH JUNE 13 2017 AT 1:30PM AS THE DATE AND TIME FOR A PUBLIC HEARING REGARDING A PROPOSED ORDINANCE TO AMEND THE SCHEDULE OF CAPACITY FEES FINANCIAL IMPACTS: None by this action. If the staff recommendation to revise Capacity Fees is adopted by the Board of Directors fallowing the public hearing and the level of new development remains constant with the last fiscal year, then the Fiscal Year 2017-18 capacity fee revenue would be approximately 6% higher. COMMITTEE RECOMMENDATION: The Finance Committee discussed staffs proposals for revising those foes and charges at its April 25, 2017 meeting. RECOMMENDED BOARD ACTION: Establish June 1, 2017 at 1:30prn as the date and time for a public hearing to receive comments on and consider adoption of a proposed ordinance to amend the Schedule of Capacity Fees. Attached Supporting Documents: I. Proposed Ordinance, including Exhibit A: Schedule of Capacity Fees, Rates, and Charges - (Uncodified) 2. Report regarding the Capacity Fee Update C:\Users\CGranzella\AppData\Local\Microsoft\Windows\Temporary Internet Files\Content.0utlookllFG8EC1115-4-17 PP to SET public hearing Cap Fees DRAFT.docx Paget of 2 ATTACHMENT 1 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 0.12 WHEREAS, the Board of Directors (Board) of the Central Contra Costa Sanitary District (Central.San) finds that substantial study has been conducted regarding the impacts of planned future development within Central San's service area on existing Central San services and facilities, along with an analysis of new, improved, or expanded Central San 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 central San services and facilities occasioned by this added burden; and WHEREAS, these studies were undertaken by Central San staff and culminated in documents that are part of the public record, to wit: The Capital Improvement Budget and Ten-year Capital Improvement Pian contained in the Central San FY 2010-17 Budget, and the Staff Report on Proposed capacity Fee Program dated April 11, 2017; 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, a properly noticed public hearing regarding the proposed Capacity Fee Program revisions was held on June 1, 2017, 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 0.12 of the District Code provides the enabling authority for Central San to implement the proposed uncodified Schedule of Capacity Fees, Rates and Charges; and WHEREAS, the Board finds as follows: 1. Central San has made a substantial investment in assets that will benefit new users. 2. For Central San 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 Central San assets among current and new users, thus ensuring that new users pay their fair share for facilities capacity and services. Central Contra Costa Sanitary District Ordinance No.. Page 2 of 3 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 Central San 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 6. 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 Central San does ordain as follows: Section 1 (To be„Uncod-if`� 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. xxx 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. xxx 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. 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 Valley Times, newspapers of general circulation within Central San, and shall be effective on July 1, 2017. PASSED AND ADOPTED this 1 st day of June 2317, by the Board of Central San by the following vote: AYES: Members: NOES: Members: ABSENT: 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: Denton L. Alm, Esq. Counsel for the District EXHIBIT "A" SCHEDULE of CAPACITY FEES, DATES, AND CHARGES (Uncodified) The capacity Fees, Rates, and charges listed below were established by central Contra costa Sanitary District ordinance No. adopted June 1, 2017. 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, 2017 in accordance with the provisions of District Code chapter 6.12. Gravity Capacity Fee $0,3001 RUE* Pumping Capacity Fee $1,6301 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 Ca ac ity Fee Tumped 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 Gravity Pumping Eligible for Capacity Capacity Capacity Use Unit of Fee RUE Fee FLUE Use Charge code User Group MeasureO 2} Factor Factor Program LU Single-family residences Dwelling Unit 1.000 1.000 LA Multiple-family residences, apartments Dwelling Unit 0.547 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 Sin le-familyresidence 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. 0.454 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\CGranzella\AppData\LocaRMicrosoft\Windows\Temporary Internet Files\Content.outlookll FG8EC1116-1-17 ORD xxx Exhibit A Capacity Fees Ord.docx Page 1 of 5 SCHEDULE of CAPACITY FEES, RATES AND CHARGES - CONTINUED Residential Unit Equivalence (RUE) Factors0) 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 1 pet BB grooming 1,900 sq. ft. 0.725 9.783 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 1 business BK services 1,000 sq. ft. 0.228 0.247 BN Nurseries/ lumbe ands 1,000 sq. ft. 0.228 0.247 IL Light industrial 1,000 sq. ft. 0.228 0.247 BH Meeting halls 1 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 0.335 BZ Miscellaneous commercial 1,000 sq. ft. 0.510 0.551 EG Golf courses 1 country clubs 1,000 sq. ft. 1.105 1.391 EH Health clubs 1 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. 0.850 0.501 BX Shopping centers 1,000 sq. ft. 1.057 1.142 GB Business offices 1.,000_§_q. ft. 0.295 0.319 OF Financial institutions 1 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 GV 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 s . 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 1,000 sq. ft. 13.506 1 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:1Users\CGranzella\AppData\LocailMicrosoft\Windows\Temporary Internet F1les\Content.Out1ook11FG8EC1115-1-17 ORD xxx Exhibit A Capacity Fees Ord.docx Page 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 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 1 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 J showers Classroom 0.860 1.000 Schools with gym 1 showers and no cafeteria Classroom 0.774 0.900 Schools with cafeteria and no gym I showers Classroom 0.516 0.600 Schools without cafeteria or gym 1 showers Classroom 0.430 0.600 (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:1Users\CGranzelialAppData\Local\Microsoft\Windows\Temporary Internet Files\Content.Outiookll FG$EC1 116-1-17 ORD xxx Exhibit A Capacity Fees Ord.docx 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 5.30 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 Grow BP Parking lots CM Cemeteries Mo Mortuaries with embalming or cremation facilities EP Parks I PlMrounds Es Swimming EF Large fitness/ athletic clubs LR Residence hotels IE Electronic industries IH Heavy industries IP Permitted industries R Laboratories I research facilities -- Improvements with garbage disposals -- Public facilities -- Special billings -- Utilities Values for use in the RUE formula in Section 5.12.050(D)(2) shall be: FLORU = 200 gpd BODRU = 200 m Il TSSRU = 215 m l A = 0.5v B = 0.14 C = 0.17 C:\Users\CGranzella\AppData\Local\Microsoft\Windows\Temporary Internet Files\Content.Outlook\IFG$EC1 II6-1-17 ORD xxx Exhibit A Capacity Fees Ord.docx Page 4 of 5 SCHEDULE OF CAPACITY FEES, RATES AND CHARGES— CONTINUED Capacity Use Charge Program The minimum "initial payment" threshold gravity capacity fee RIDE factor shall be 1.166 RUE/per one thousand square feet. Capacity Charge Capacity Use "Initial Pa meet" Charge Rates Pumping Gravity Capacity Current Year Capacity Fee Fee RUE ($/Month RUE Factor Factor 1 9000 Sq. Ft.) Use (RUE/1,000 (RUE/1,000 Annual Code User Group Sq,Ft.) Sq. Ft.) ($/HCF AC Car washes 1.188 22.829 $1,079.66 $ 5.81 AW Car washes with recycling 1.188 3.885 $ 127.35 $ 4.11 BL Laundromats 1.166 14.594 $ 687.84 $ 5.82 HP Hospitals 1.166 3.124 $ 93.25 $ 3.67 LH Hotel/Motel 1.166 1.926 $ 41.68 $ 3.97 RB Bakeries retail 1.166 2.178 $ 156.49 $ 8.83 RS Restaurants dine-in 1.166 2.738 $ 153.73 $ 6.96 RT Restaurants (paper 1.166 2.738 $ 153.73 $ 6.99 service 1 no dishwashers SF Skilled nursin facilities 1.166 2.347 $ 56.76 $ 2.91 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\CGranzella\AppData\Local\Microsoft\Windows\Temporary Internet Fi1es\Content.Outiookl1FG8EC1116-1-17 ORD xxx Exhibit A Capacity Fees Ord.docx Page 5 of 5 ATTACHMENT 2 CENTRAL CONTRA COSTA SANITARY DISTRICT Report Regarding the capacity Fee Update April 11, 2017 INTRODUCTION Central contra Costa Sanitary District (Central San) 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 central San's existing assets (approximately $1.8 billion) is much greater than the value of any future facilities expansion needed to accommodate future customers. While Central San's Fiscal Year (FY) 2017-18 proposed Capital Improvement Plan lists over$800 million in projects over the next 10 years, most of these projects are for renovation, regulatory compliance, replacement or upgrading of facilities to maintain capacity for bath current and prospective customers. Central San 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 central San's Capacity Fee. Central San 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 88013 of the California Government code. The equity buy-in method defined by WEF and used by Central San conforms to the requirements contained in Section 88013. CALCULATION APPROACH The Capacity Fee is adjusted each year to reflect the changes in the value of Central San's assets. It is calculated using the equity buy-in approach which divides the value of Central San's assets by the current number of RUES to determine the fee. The calculated value of Central San's assets are determined as follows: • Land: The current value of investments in real property is estimated based on the opportunity value of life cash investments deposited in central San'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 11, 2017 ■ 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 Francisca 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 Central San'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 Central San's outstanding debt. Contributed assets are generally not included in the calculation in order to avoid double recovery of costs, as described in the Water Environment Federation (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 determined 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 FY 2017-18 by applying the valuation approach and facilities life cycles described above. The updated fees are: Fee Category current Proposed % Ch Gravity Service $5,948 per RUE $8,300 per RUE 5.9% Pumping Service $7,558 per RUE $7,939 per RUE 4.9% Capacity Fee Update Report Page 3 April 11, 2017 The recommended fee calculation approach is a rational, practical, equitable and defensible method to determine the financial burden of new connections. A breakdown of the proposed Capacity Fees by asset category is presented in Table 1. Table 2 shows a comparison of the proposed capacity Fees to the fees charged by neighboring agencies. The service life assumptions for each asset category are included in Table 3. Attached SupportingDocuments: 1. Table 1 —Capacity Fees Calculation 2. Table 2—Comparison of Capacity Fees 3. Table 3—Average Useful Service Life CENTRAL CONTRA COSTA SANITARY DISTRICT Report Regarding Capacity Fee Update Table 1 -Capacity Fees Calculation -FY 2017-18 (Buy-in to all assets. Values through 06/3012016) Value per FY 2016- Asset Category Asset Value' RUE 17 Value Change Change ($/RUE) per RUE M N Land $49,910,832 $292 $295 ($3) -1.0% Facilities Treatment Plant/O utfa I I (45% a 100 yrs+20% a@ 75 yrs+ 35% a@ 30 yrs) $341,776,207 $1,998 $1,946 $52 2.7% Recycled Water Facilities(75% a@ 50 yrs+ 25% @ 30 yrs) $18,137,'165 $106 $102 $4 3.9% Collection System Trunks and Interceptors(30% (cb, 150 yrs+ 70% (� 100 yrs} $323,797,037 $1,893 $1,852 $41 2.2% Contributed Mains(100%Q 75 yrs) $658,442,000 not included District Renovated Mains(100%(ED, 100 yrs) $199,527.438 $1,167 $1,075 $92 8.6% Pumping Stations X45°/0 (a7 100 yrs+20% (@ 75 yrs+ 35% CcD, 30 yrs) $80,653,264 $1,6393 $1,618 $21 1.3% General Improvements(Buildings, Equipment, etc.) $659456,892 $383 $363 $14 3.8% (50% a@ 50 yrs+ 35% @ 25 yrs+ 15%@ 10 yrs) Major Repairs(100% a@ 10 yrs) $10,9041325 $64 $57 $7 12.3% Sewer Construction Fund Balance (net of outstanding debt) $28,991,817 $170 $119 $51 42.9% Running Expense Fund & Debt Service Fund Balances $33,5147465 $196 $101 $95 94.1% Self Insurance Fund Balance $51338,938 $31 $32 ($1) -3.1% TOTAL VALUE: $1,816,450,380 Capacity Fee-Gravity Service $1,077,355,116 $6,300 $51948 $352 5.9% Capacity Fee-Pumped Service $1,158,008,380 $759394 $7,566 $373 4.9% 171,027 Total Residential Unit Equivalents(RUES) 49,196 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 RU Es unless otherwise noted 3. Pumped component equals asset value divided by pumped zone RUES 4. Gravity Service Capacity Fee plus pumped component 04/11/17 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 $17,329 Mt View Sanitary District $9,690 Proposed CCCSD Pumped Zone $7,665 Current CCCSD Pumped Zone $7,556 Antioch (Delta Diablo Sanitation District for Treatment) $7,533 Pittsburg (Delta Diablo Sanitation District for Treatment) $6,767 Proposed CCCSD Gravity Zone $6,300 Current CCCSD Gravity Zone $5,948 Concord $5,043 West County Wastewater District $4,407 Bay Point (Delta Diablo Sanitation District for Treatment) $3,940 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 0 years Major Repairs/Replacements 10 years