HomeMy WebLinkAbout08. Review proposed Development Fees and Charges for Fiscal Year 2017-18 Central San ■ BOARD OF DIRECTORS D rel POSITION PAPER Board Meeting Date: May 4, 2017 Subject: ESTABLISH JUNE 11 2017 AT 1:30PM AS THE DATE AND TIME FOR A PUBLIC HEARING REGARDING A PROPOSED ORDINANCE TO AMEND THE SCHEDULE OF ENVIRONMENTAL AND DEVELOPMENT- RELATED FEES AND CHARGES Submitted By: Initiating Dept./Div.: Thomas Brightbill, Senior Engineer Engineering & Technical Services Planning & Development Services REVIEWED AND RECOMMENDED FOR BOARD ACTION: D. Gemmell— Planning & Development Services Division Mgr. JM. Petit—Director of Engineering &Technical Services Kent Alm Roger S. Bailey Counsel for the District General Manager ISSUE: District Code Section 6.30 requires that a public hearing be held prior to the Board of Directors' consideration of amendments to the Schedule of Environmental and Development-Related Fees and Charges. BACKGROUND: Staff has completed its annual review of Central San's Environmental and Development-Related Fees and Charges, and has concluded that it would be appropriate to revise these charges to account for changes in the actual cost to provide services. Each year, these charges are updated using current salary data, revised mileage and other costs, and Central San's revised overhead rate. This year, the overhead rate used in the calculation is 225%. Central San's overhead rate for fiscal year (F`) 2017-18 was approved by the Board of Directors on January 26, 2017. Staff also proposes to conduct a public hearing on a related recommendation to revise capacity fees at the same June 1, 2017 Board Meeting. ALTERNATIVES/CONSI DE RATIONS: The Board of Directors may decline to establish the recommended public hearing date or may elect to choose a different date; however, a public hearing must be held if Environmental and Development-Related Fees and Charges are to be revised. If the hearing is held on June 1, 2017 as recommended, the updated charges would be effective on July 1 , 2017. FINANCIAL IMPACTS: None by this action. If the staff-proposed revisions to the Environmental and Development-Related Fees and Charges are adopted, 16 charges will remain unchanged, 62 charges will increase, and one fee will decrease. Staff estimates that increased revenue in the categories where increases to charges are recommended will be modest. C:\Users\CGranzella\AppData\Local\Microsoft\Windows\Temporary Internet Files\Content.0ut1ook\lFG8EC1 1\5-4-17 PP to SET PH re Env Dev Fees.docx Page 1 of 2 POSITION PAPER Board Meeting Date: May 4, 2017 Subject" ESTABLISH JUNE 11 2017 AT 1:30PM AS THE DATE AND TIME FOR A PUBLIC HEARING REGARDING A PROPOSED ORDINANCE TO AMEND THE SCHEDULE OF ENVIRONMENTAL AND DEVELOPMENT--RELATED FEES AND CHARGES 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 Fees and Charges will be conducted by staff before the public hearing date. Informational material will be mailed to approximately 250 contractors, engineers, developers, permitted industrial users, and other interested parties. COMMITTEE RECOMMENDATION: The proposed changes will be reviewed by the Finance Committee at the April 25, 2017 meeting. RECOMMENDED BOARD ACTION: Establish June 1, 2017 at 1:30pm as the date and time for a public hearing to receive comments on and consider adoption of a proposed ordinance to amend the Schedule of Environmental and Development- Related Fees and Charges. Attached Sypgorting Documents: 1. Proposed Ordinance 2. Report regarding Environmental and Development Fees and Charges dated April 17, 2017 C:lUsers\CGranzellalAppDatalLocal\Microsoft\Windows\Temporary Internet Fi1es\Content.0ut1ook\IFG8EC1115-4-17 PP to SET PH re Env Dev Fees.docx Page 2 of 2 ATTACHMENT 'I ORDINANCE NO. 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 (Central San) finds that Central,San 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 Central San 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 Central San services to recover the reasonable cost of providing said services; and WHEREAS, Central San 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 Central San for staff costs and expenses. NOW, THEREFORE, the Board of Central San 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. Central Contra Costa Sanitary District Ordinance No. Page 2 of 2 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 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 Central San and shall be published in the Contra Costa Times and San Ramon Valley Times, newspapers of general circulation, published and circulated within Central San and shall be effective as of July 1, 2017. PASSED AND ADOPTED by the Board of Central San on the "Ist day of June, 2017, by the following vote: AYES: Members: NOES: Members: ABSENT: Members: Paul H. Causey 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" ENVIRONMENTAL AND DEVELOPMENT FEES AND CHARGES Final version of Attachment 1 without comparisons. C:1Users\CGranzella\AppData\Local\Microsoft\Windows\Temporary Internet Files\Content.outlookll FGBECI Il6-1-17 ORD xxx Exhibit A Env Dev Fee.docx Page 1 of 1 ATTACHMENT 2 CENTRAL CONTRA COSTA SANITARIA' DISTRICT Report Regarding Environmental and Development Fees and Charges Update April 17, 2017 OVERVIEW The Central centra costa Sanitary District (Central San) 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 Central San maps; source control permits and inspections; and septic and grease hauler sampling and treatment. These fees and charges are intended to recover Central San's direct and indirect labor costs, other operating expenses, and administrative overhead incurred in providing the services. The last update to the fees was on June 2, 201 6. Central San staff reviews the fees and the casts to provide the corresponding 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 For Fiscal Year 2017-18, staff is recommending changes to the Schedule of Fees and Charges based on recovering the cast for the service provided, taking into consideration relevant operating costs, including current labor costs and updated mileage costs. A comparison of the current and proposed fees and charges is shown in Attachment 1. Fee Increases The Alhambra Valley Contractual Assessment District (AVAD) multiplier has a proposed increase of 0.434% which reflects the latest State of California Pooled Money Investment Account (PMIA) annual yield. One of the parcels in the St Mary's Road Contractual Assessment District (CAD) was split into two parcels. The multiplier for the CAD was decreased to account for the tat split and increased to reflect the PMIA resulting in a net adjustment of-6%. Ordinance 279, which set the original CAD fee, contains a provision for adjusting the CAD fee for changes in the number of parcels. The use of PMIA for the CAD and AVAD fee multipliers was specified at the time the fees were established. Report Regarding Environmental and Development Fees & Charges Page 2 April 17, 2017 The remaining fees with changes have proposed increases between 3.8% and 7.5% reflecting increases in Central San labor casts and administrative overhead. The average increase of these fees is 6.4%. 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. SUMMARY If the proposed revisions to the Schedule of Environmental and Development-related Fees and Charges are adopted 25 charges ►will remain unchanged, 62 charges will increase, and one fee will decrease. Staff estimates that increased revenue in the categories where increases to charges are recommended will be modest. Attached Supporting„Document: 1. Attachment I - Comparison of Current&Proposed Fees and Charges for FY 2017-18 ATTACHMENT 1 CENTRAL CONTRA COSTA SANITARY DISTRICT COMPARISON OF CURRENT&PROPOSED FEES& CHARGES FOR 2017-18 DRAFT Fee Category Current Fee 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) $3,469 $31717 7.1% Each additional hour in excess of base fee $175 $188 7.4% Special Cut Sheet Review $348 $373 7.2% Manhole only design&plan review $1,273 $1,364 7.1% Right of Way Document Review-IOD 1 Sub Map(each): $769 1 $824 7.2% Right of Inlay Document Review-No Changes Required $491 $525 7.1% Right of Way document review-Appurtenance(initial): $681 $730 7.2% Appurtenance(each additional) $262 $281 7.3% (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) $142 $151 6.3% Existing parcel -new sewer service $230 $245 6.5% New parcel-new sewer service $309 $328 6.1% Commercial Application(includes up to one hour of plan review) $340 $364 7.1% Commercial Application Plan Review-Additional hours,covers review of plans $160 $172 7.5% for a change in use or expansion of a commercial facility,time in excess of one hour Capacity Use Charge Program $465 $499 7.3% Capacity Fee Installment Program and Promissory Note Program $465 $499 7.3% (A-3) Reimbursement Accounts: Set-up fee $1,347 $11444 7.24/ Transaction fee $203 $218 7.4% (A-4) Special Studies: Base fee(4 hours plus misc.costs) $719 $770 7.1% Each additional hour $157 $168 7.0% Source Control Business Review-base fee,includes plan review,site visit and $937 $1,002 6.9%inspection time up to four hours Source Control Business Review-each additional hour in excess of four hour base $190 $204 7.4% fee for plan review,site visit and inspection time Grease Variance Review(includes site visit) $370 $396 7.0% Site Collector Plan Check $436 $457 7.1% Source Control Enforcement Review and Inspection $522 $559 7.1% (A-5) Private pumping system plan check-Commercial(Outside Force Allain) $747 $800 7.1% Additional Review $339 $363 7.1% Private pumping system plan check-Residential $391 $419 7.2% (A-6) Annexation Fee $560 $600 7.1% (A-7) iSpecial Approvals $393 $421 7.1% Revised:04/18/17 Attach 1 -Env Dev Rates Comparison 2017-04-17.xlsx Page 1 ATTACHMENT 1 CENTRAL CONTRA COSTA SANITARY DISTRICT COMPARISON OF CURRENT&PROPOSED RATES&CHARGES FOR 2017-18 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 $849 $905 6.6% Per Foot Charge(in street) $13.25 $14.17 6.9% Per Foot Charge(in undeveloped land) $9.00 $9.63 7.0% New Manhole,Rodding Inlet $896 $960 7.1% (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 1 Repair per 100 feet: $224 $240 7.1% Single Inspection Charge(e.g.sewer connection;encroachment verification;side sewer cap on property;tap and lateral(new or replacement);air test; reinspection; $224 $240 7.1% homeowner preconstruction inspection) Manhole tap; lateral abandonment at main;pipe bursting;trash enclosure $448 $480 7.1% w/o trap;side sewer CIPP repair;outdoor grease trap only Manhole Alteration;trash enclosure with trap;grease interceptor abandonment $672 $720 7.1% Outside pump installation $896 $960 7.1% New Manhole or Rodding Inlet(private) $896 $960 7.1% Grease!Sand f Oil Interceptor $1,344 $1,440 7.1% (B-3) Overtime inspection: First Hour(if responding from off-site) $115 $120 4.3% Every hour thereafter $75 $78 4.0% 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. $340 $354 4.1% minimum (B-4) lInspection of non-permitted work(+avoided charge) $11058 $11133 7.1% Revised: 04/18/17 Attach 1 -Env Dev Rates Comparison 2017-04-17.xlsx Page 2 ATTACHMENT 1 CENTRAL CONTRA COSTA SANITARY DISTRICT COMPARISON OF CURRENT& PROPOSED RATES& CHARGES FOR 2017-18 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 $448 per unit $480 per unit 7.1% 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#wilding foundation: This fee is for inspection of new residential units connecting to CCCSD's mainline prior to structure being roofed and rough plumbing being $896 per unit $980 per unit 7.1% 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 $448 per unit $480 per unit 7.1% 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 $1120 per unit $1200 per unit 7.1% 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:04/15/17 Attach 1 -Env Dev Rates Comparison 2017-04-17.xlsx Page 3 ATTACHMENT 1 CENTRAL CONTRA COSTA SANITARY DISTRICT COMPARISON OF CURRENT& PROPOSED RATES& CHARGES FOR 2017-18 DRAFT Fee Category T Current Fee Proposed FeeT%Change (C) COLLECTION SYSTEMA 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 $290 7.0% Minimum Charge(2 hr min) $542 $580 7.0% Overtime-First Hour $167 $175 4.8% Overtime-Each Additional Hour $131 $136 3.8/4 Overtime-Weekend I Holiday(4 hr min) $560 $583 4.1% (C-2) Dye test $337 $359 6.5% (C-3) Collection system repair Actual Expense Actual Expense no change (C-4) Cancelled TV Inspection without prior notice $495 $530 7.1% (C-5) Sewer locating and marking $347 1 $329 1 7.2% (D) RIGHT-OF-WAY Establishing right-of-way agreements and resolving conflicts. (D-1) Process Quitclaim Deeds $1,309 $19401 7.0% Process Quitclaim Deed-plat and legal by others $782 $838 7.2% (D-2) Process Real Property Agreement,License,or Easement: Base Fee(minimum charge) $1,075 $1,150 7.0% Each Additional Hour(after 2 hours) $169 $181 7.1% (D-3) . Right-of-way Research 1 Encroachment Resolution Fee Actual Expense Actual Expense no change (D-4) lRight of Entry 1 Encroachment Permit Fee $241 $257 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 1 Plan Copying Fees: 8 112"x 11"; 8 1I2"x 1411 ; 11 11 1"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 1.43361 1.03810 0.4% Reimbursement Fee amounts applicable to connections in 2017-18. 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 1.00827 0.94513 -6.3% connections in 2017-18. 1 1- Revised:04118117 Attach 1 -Env Dev Rates Comparison 2017-04-17.xlsx Page 4 ATTACHMENT 1 CENTRAL CONTRA COSTA SANITARY DISTRICT COMPARISON OF CURRENT& PROPOSED RATES &CHARGES FOR 2017-18 DRAFT Fee Category current Fee Proposed Fee %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 $3,454+cost of $3,450+, ecost of no Chan Districts+ lab. Districts lab 0 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 Districts lab Districts lab g analysis analysis (F-3) Class Ili 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 $330 $330no change On-site inspection $800 $800 no change Additional charge for capacity review(Required for discharges}50 gpm) $255 $255 no change (G) SEPTAGE DISPOSAL(**) Sampling and disposal of septic waste and grease. (G-1) Annual permit fee $1,865 $1,865 no change (G-2) Residential septic/toilet waste: *2,000 gallons $20+$0.15/gal $20+$0.15/gal no change *2,000 gallons $60+$0.151gal $60+$0.151gal no change (G-3) Restaurant grease waste: <2,000 gallons $20+$0.021gal $20+$0.021gal no change >2,000 gallons $60+$0.021gal $60+$0.021gal 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:04/18/17 Attach 1 -Env Dev Rates Comparison 2017-04-17.xlsx Page 5