The URL can be used to link to this page

Home My WebLink About07.a. Presentation re capacity fee methodology and capacity fees for a proposed expansion of Lettuce Restaurant in Walnut CreekItem 7.a. C entral C ontra C osta S anitary D istrict A ugust 17, 2017 T O : HO NO R A B L E B O A R D O F D I R E C TO R S F RO M :T HO MA S B R I G HT B I L L , S E NI O R E NG I NE E R RE V I E WE D B Y:D A NE A G E MME L L , P L A NNI NG & D E V E L O P ME NT S E RV I C E S D I V I S I O N MA NA G E R J E A N-MA R C P E T I T, D I R E C TO R O F E NG I NE E R I NG & T E C HNI C A L S E RV I C E S R O G E R S . B A I L E Y, G E NE R A L MA NA G E R S UB J E C T: P R E S E NTAT I O N R E G A R D I NG C E NT R A L S A N'S C A PA C I T Y F E E ME T HO D O L O G Y A ND C A PA C I T Y F E E S F O R A P R O P O S E D E X PA NS I O N O F L E T T UC E R E S TA UR A NT I N W A L NUT C R E E K T he attached presentation was prepared in res ponse to a request by Member Nejedly at the A ugust 3, 2017 B oard meeting concerning the basis f or the D istrict’s capacity f ees related to the proposed expansion of L ettuce R estaurant in Walnut C reek. AT TAC HM E NT S : D escription 1. C apacity F ees P resentation August 17, 2017 Regular Board Meeting Agenda Packet - Page 53 of 102 Page 1 of 21 CAPACITY FEE METHODOLOGY AND LETTUCE RESTAURANT CASE STUDY Thomas Brightbill, Senior Engineer Danea Gemmell, Division Manager Planning and Development Division Board Meeting August 17, 2017 August 17, 2017 Regular Board Meeting Agenda Packet - Page 54 of 102 Page 2 of 21 CAPACITY FEE OVERVIEW August 17, 2017 Regular Board Meeting Agenda Packet - Page 55 of 102 Page 3 of 21 PURPOSE •Ensure that new users contribute their appropriate share of funding for upgrades, replacements, renovations, and improvements of wastewater treatment, recycled water, Household Hazardous Waste and other facilities •Equitable adjustment of capital contributions between new and current users District Code 6.12.010 August 17, 2017 Regular Board Meeting Agenda Packet - Page 56 of 102 Page 4 of 21 FEE STRUCTURE OPTIONS •Buy-in Approach (based on existing facilities) •Capacity Buy -In •Equity Buy -In •Marginal or Incremental Approach (based on capacity-enhancing improvements)WEF Manual of Practice No. 27 Government Code 66013 August 17, 2017 Regular Board Meeting Agenda Packet - Page 57 of 102 Page 5 of 21 EQUITY BUY-IN METHOD “…most appropriate where current system facilities have adequate capacity to serve both existing and future customers” “… new customers will be assessed a [capacity] charge at the same equity position as existing customers.” WEF Manual of Practice No. 27 August 17, 2017 Regular Board Meeting Agenda Packet - Page 58 of 102 Page 6 of 21 EQUITY BUY-IN METHOD CALCULATION 𝑇𝑙𝑟𝑎𝑙𝑇𝑎𝑙𝑟𝑒𝑙𝑒𝐶𝑖𝑟𝑟𝑟𝑖𝑎𝑟𝐴𝑟𝑟𝑒𝑟𝑟 𝑇𝑙𝑟𝑎𝑙𝑁𝑟𝑙𝑎𝑒𝑟𝑙𝑒𝐶𝑟𝑟𝑟𝑙𝑙𝑒𝑟𝑟 𝑟𝑒𝑟𝑟𝑙𝑟𝑟𝑖𝑙𝑎 𝐶𝑎𝑙𝑎𝑎𝑖𝑟𝑦𝐶𝑒𝑒𝑖𝑙$ 𝑅𝑇𝐶 (RUE= Residential Unit Equivalent) August 17, 2017 Regular Board Meeting Agenda Packet - Page 59 of 102 Page 7 of 21 SCALING MEASURES “…designed to ensure that customers who are larger, or use infrastructure systems more intensively, pay the associated costs of capacity required to serve them.” WEF Manual of Practice No. 27 August 17, 2017 Regular Board Meeting Agenda Packet - Page 60 of 102 Page 8 of 21 SCALING MEASURES •Wastewater demand measured or estimated by flow and strength •Plumbing Fixtures •Dwelling Unit Count •Square Footage •Meter Size WEF Manual of Practice No. 27 August 17, 2017 Regular Board Meeting Agenda Packet - Page 61 of 102 Page 9 of 21 CUSTOMER CLASSES •Residential (single family and multi-family) •Non Residential (Commercial and Industrial) August 17, 2017 Regular Board Meeting Agenda Packet - Page 62 of 102 Page 10 of 21 SCHEDULE OF CAPACITY FEES, RATES AND CHARGES FOR CENTRAL SAN Ord. 296 Adopted June 1, 2017 August 17, 2017 Regular Board Meeting Agenda Packet - Page 63 of 102 Page 11 of 21 CAPACITY FEE FOR RESTAURANTS August 17, 2017 Regular Board Meeting Agenda Packet - Page 64 of 102 Page 12 of 21 CHANGE OF USE Any change of use for a parcel which results in an added burden on the District’s facilities will subject that parcel to additional capacity fees for the added burden. District Code 6.12.060 August 17, 2017 Regular Board Meeting Agenda Packet - Page 65 of 102 Page 13 of 21 LETTUCE RESTAURANT A CASE STUDY August 17, 2017 Regular Board Meeting Agenda Packet - Page 66 of 102 Page 14 of 21 PARCEL HISTORY •County Assessor data shows a 6,500 SF building with 3 tenant spaces •Building previously entitled at retail rate •In 1992, Central San collected additional Capacity Fees for conversion of one space (approximately 2,300 sq. ft.) to a restaurant August 17, 2017 Regular Board Meeting Agenda Packet - Page 67 of 102 Page 15 of 21 CURRENT PROJECT •Application received July 10, 2017 for Tenant Improvements to expand the restaurant, converting 3 spaces to 2 •Plans show approximately 1,460 square feet of additional space labeled •Dining Service •Food Prep •Storage •Office August 17, 2017 Regular Board Meeting Agenda Packet - Page 68 of 102 Page 16 of 21 PROPOSED RESTAURANT EXPANSION PLAN Existing Restaurant SpaceExpanded Space August 17, 2017 Regular Board Meeting Agenda Packet - Page 69 of 102 Page 17 of 21 FEE ESTIMATES Fee Quote Application (Commercial)$364 Source Control Review 1,002 Sewer Service Charge (partial year)2,790 Capacity Fee 34,498 Total $38,654 2 Notes: 1.Updated fee quote e-mailed to business owner on July 31, 2017 2.Application and Source Control Review fees have been paid ($1,366) 3.Additional costs payable to others include grease interceptor installation 4.Capacity Use Charge Program allows users with high capacity fees to pay fee over 15 years 5.Capacity Fee quote includes credit for previous retail entitlement. Restaurant Capacity Fee with no credit is 1,460 SF x 4.010 RUE/1,000 SF X $6,300/RUE = $36,884 2 2 2 Fee Quote with Capacity Use Charge Agreement Application (Commercial)$364 Capacity Use Charge Program Setup 499 Source Control Review 1,002 Sewer Service Charge (partial year)2,790 Capacity Fee - Initial Down Payment 8,341 Total $12,996 Estimated Annual Capacity Use Charge Payments $2,760 5 4,5 4,5 August 17, 2017 Regular Board Meeting Agenda Packet - Page 70 of 102 Page 18 of 21 CAPACITY FEE REVIEW EFFORTS August 17, 2017 Regular Board Meeting Agenda Packet - Page 71 of 102 Page 19 of 21 REVIEW EFFORTS •Working with Black & Veatch Management Consulting to formally review Central San’s Capacity Fee methodology and practices to: •Determine if a simpler and easier to administer methodology is appropriate •Ensure the methodology is fair to all customer classes •Maintain legality and defensibility of the approach and methodology •Implement Best Industry Practice •Some review of Capacity Fee methodology during Cost of Service Study including August 14, 2014 presentation at Board Workshop August 17, 2017 Regular Board Meeting Agenda Packet - Page 72 of 102 Page 20 of 21 QUESTIONS , COMMENTS , AND DISCUSSION August 17, 2017 Regular Board Meeting Agenda Packet - Page 73 of 102 Page 21 of 21