HomeMy WebLinkAbout04.b. Review draft Position Paper to establish June 7, 2018 at 1:30 p.m. as the date and time for a public hearing regarding a proposed ordinance to amend the Schedule of Capacity Fees Page 1 of 16 Item 4.b. CENTRAL SAN BOARD OF DIRECTORS ' POSITION PAPER DRAFT MEETING DATE: APRIL 24, 2018 SUBJECT: REVIEW DRAFT POSITION PAPER TO ESTABLISH JUNE 7, 2018AT 1:30 P.M. AS THE DATE AND TIME FORA PUBLIC HEARING REGARDING A PROPOSED ORDINANCE TO AMEND THE SCHEDULE OF CAPACITY FEES SUBMITTED BY: INITIATING DEPARTMENT: IRINA KADENTSEVA, MANAGEMENT ENGINEERING AND TECHNICAL SERVICES- ANALYST PDS-RATES AND FEES THOMAS BRIGHTBILL, SENIOR ENGINEER REVIEWED BY: DANEA GEMMELL, PLANNING AND DEVELOPMENT SERVICES DIVISION MANAGER JEAN-MARC PETIT, DIRECTOR OF ENGINEERING AND TECHNICAL SERVICES ANN SASAKI, DEPUTY 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 % Change Gravity Zone Fee $6,300 per RUE $6,700 per RUE 6.3% Pumped Zone Fee $7,939 per RUE $8,336 per RUE 5.0% (RUE = Residential Unit Equivalent) Staff also proposes to conduct a public hearing on a related recommendation to revise the Schedule of April 24, 2018 Regular FINANCE Committee Meeting Agenda Packet- Page 29 of 192 Page 2 of 16 Environmental and Development-Related Fees and Charges at the same June 7, 2018 meeting of the Board of Directors. ALTERNATIVES/CONSIDERATIONS 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 Capacity Fees are to be revised. If the hearing is held on June 7, 2018, the increased fees could take effect on July 1, 2018. FINANCIAL IMPACTS None by this action. If the staff recommendation to revise Capacity Fees is adopted by the Board of Directors following the public hearing and the level of new development remains constant with the last fiscal year, then the Fiscal Year 2018-19 capacity fee revenue would be approximately 6.3% higher. 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. COMMITTEE RECOMMENDATION The Finance Committee discussed staff's proposals for revising these fees and charges at its April 24, 2018 meeting. RECOMMENDED BOARD ACTION Establish June 7, 2018 at 1:30 p.m. 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. GOAL THREE:Be a Fiscally Sound and Effective Water Sector Utility Strategy 2- Manage Costs ATTACHMENTS: 1. Proposed Ordinance, including Exhibit A: Schedule of Capacity Fees, Rates and Charges (Uncodified) 2. Report regarding the Capacity Fee Update April 24, 2018 Regular FINANCE Committee Meeting Agenda Packet- Page 30 of 192 Page 3 of 16 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 6.12 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 Plan contained in the document titled, "Central Contra Costa Sanitary District FY 2017-18 Budget," and the Staff Report on Proposed Capacity Fee Program dated March 27, 2018; 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 7, 2018, 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 6.12 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's assets among current and new users, thus ensuring that new users pay their fair share for facilities capacity and services. April 24, 2018 Regular FINANCE Committee Meeting Agenda Packet- Page 31 of 192 Page 4 of 16 Ordinance No. Page 2 of 3 Central Contra Costa Sanitary District 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's 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 Central San including facilities and the balances in the: - Sewer Construction Fund - Running Expense Fund - Debt Service Fund - Self Insurance Fund 5. 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 Directors of the Central Contra Costa Sanitary District does ordain as follows: Section 1 (To be Uncodified) 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. 296 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. 296 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 April 24, 2018 Regular FINANCE Committee Meeting Agenda Packet- Page 32 of 192 Page 5 of 16 Ordinance No. Page 3 of 3 Central Contra Costa Sanitary District 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 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, 2018. PASSED AND ADOPTED this 7th day of June 2018, by the Board of Directors of the Central Contra Costa Sanitary District by the following vote: AYES: Members: NOES: Members: ABSENT: Members: James A. Nejedly President of the Board of Directors Central Contra Costa Sanitary District County of Contra Costa, State of California COUNTERSIGNED: Katie Young 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 April 24, 2018 Regular FINANCE Committee Meeting Agenda Packet- Page 33 of 192 Page 6 of 16 EXHIBIT "A" SCHEDULE OF CAPACITY FEES, RATES AND CHARGES (Uncodified) The Capacity Fees, Rates and Charges listed below were established by Central Contra Costa Sanitary District Ordinance No. adopted June 7, 2018. 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, 2018 in accordance with the provisions of District Code Chapter 6.12. Gravit Capacity Fee $6,700 / RUE* Pumping Capacity Fee $1,636 / RUE *A residential unit equivalent (RUE) is a measure of sewage volume and strength equivalent to a typical residential household. Gravit Zone Fee Zone 1 = Gravity Capacity Fee Pumped 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 RUE Use Charge Code User Group Measure(1,2) Factor Factor Program LU Single-family residences Dwelling Unit 1.000 1.000 LA Multiple-family residences, apartments Dwelling Unit 0.847 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 Single-family residence 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. 0.484 0.467 BT Transportation services 1,000 sq. ft. 0.432 0.467 AC Car washes 1,000 s . 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. N:\EnvrSRV\Fees&Charges-Capacity, Environmental&Development\2018 Review\Capacity Fees\06-07-2018 ord xxx exhibit a capacity fees.docx Page 1 of 5 April 24, 2018 Regular FINANCE Committee Meeting Agenda Packet- Page 34 of 192 Page 7 of 16 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 / pet BB grooming 1,000 sq. ft. 0.725 0.783 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/ business BK services 1,000 sq. ft. 0.228 0.247 BN Nurseries/ lumberyards 1,000 sq. ft. 0.228 0.247 IL Light industrial 1,000 sq. ft. 0.228 0.247 BH Meeting halls/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 0.336 BZ Miscellaneous commercial 1,000 sq. ft. 0.510 0.551 EG Golf courses/country clubs 1,000 sq. ft. 1.166 1.391 EH Health clubs/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 s . ft. 0.556 0.601 BS Supermarkets 1,000 sq. ft. 0.880 0.601 BX Shopping centers 1,000 sq. ft. 1.057 1.142 OB Business offices 1,000 sq. ft. 0.295 0.319 OF Financial institutions / 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 OV 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 sq. 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 1,000 sq. ft. 13.506 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. N:\EnvrSRV\Fees&Charges-Capacity,Environmental&Development\2018 Review\Capacity Fees\3-27-18 ORD xxx Exhibit A Capacity Fees Ord.doc Page 2 of 5 April 24, 2018 Regular FINANCE Committee Meeting Agenda Packet- Page 35 of 192 Page 8 of 16 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 SF Skilled nursing facilities 1,000 s . 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 / motels 1,000 sq. ft. 1.926 1.272 CH I Churches 1 1,000 sq. ft. 1 0.242 0.261 Private and Public Schools Use codes SD, SE, SH, SI, SU Schools with cafeteria and gym / showers Classroom 0.860 1.000 Schools with gym / showers and no cafeteria Classroom 0.774 0.900 Schools with cafeteria and no gym / showers Classroom 0.516 0.600 Schools without cafeteria or gym / showers Classroom 0.430 0.500 (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. N:\EnvrSRV\Fees&Charges-Capacity, Environmental&Development\2018 Review\Capacity Fees\3-27-18 ORD xxx Exhibit A Capacity Fees Ord.doc Page 3 of 5 April 24, 2018 Regular FINANCE Committee Meeting Agenda Packet- Page 36 of 192 Page 9 of 16 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 6.30 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 Group BP Parking lots CM Cemeteries MO Mortuaries with embalming or cremation facilities EP Parks / playgrounds ES Swimming pools EF Large fitness / athletic clubs LR Residence hotels IE Electronic industries IH Heavy industries IP Permitted industries IR Laboratories / research facilities -- Improvements with garbage disposals -- Public facilities -- Special billings -- Utilities Values for use in the RUE formula in Section 6.12.050(D)(2) shall be: FLORU = 200 gpd BODRU = 200 m /I TSSRU = 215 m /I A = 0.69 B = 0.14 C = 0.17 N:\EnvrSRV\Fees&Charges-Capacity, Environmental&Development\2018 Review\Capacity Fees\3-27-18 ORD xxx Exhibit A Capacity Fees Ord.doc Page 4 of 5 April 24, 2018 Regular FINANCE Committee Meeting Agenda Packet- Page 37 of 192 Page 10 of 16 SCHEDULE OF CAPACITY FEES, RATES AND CHARGES — CONTINUED Capacity Use Charge Program The minimum "initial payment" threshold gravity capacity fee RUE factor shall be 1.166 RUE/per one thousand square feet. Capacity Charge Capacity Use "Initial Pa ment" Charge Rates Pumping Gravity Capacity Current Year Capacity Fee Fee RUE ($/Month RUE Factor Factor 1,000 Sq. Ft.) Use (RUE/1,000 (RUE/1,000 Annual Code User Group Sq. Ft.) Sq. Ft.) ($/HCF AC Car washes 1.166 21.127 $1,147.51 $ 6.18 AW Car washes with recycling 1.166 3.522 $ 135.44 $ 4.38 BL Laundromats 1.166 13.506 $ 709.40 $ 5.98 HP Hospitals 1.166 2.891 $ 99.17 $ 3.90 LH Hotel/Motel 1.166 1.926 $ 43.69 $ 4.22 RB Bakeries retail 1.166 4.061 $ 166.43 $ 9.39 RS Restaurants dine-in 1.166 4.010 $ 163.49 $ 7.34 RT Restaurants (paper 1.166 4.010 $ 163.49 $ 7.34 service / no dishwashers SF Skilled nursing facilities 1.166 2.216 $ 60.36 $ 3.10 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. N:\EnvrSRV\Fees&Charges-Capacity, Environmental&Development\2018 Review\Capacity Fees\3-27-18 ORD xxx Exhibit A Capacity Fees Ord.doc Page 5 of 5 April 24, 2018 Regular FINANCE Committee Meeting Agenda Packet- Page 38 of 192 Page 11 of 16 CENTRAL CONTRA COSTA SANITARY DISTRICT Report Regarding the Capacity Fee Update March 27, 2018 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 Central San's customers. 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 $1.9 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 both 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 66013 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 66013. 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 Residential Unit Equivalents (RUEs) to determine the fee. The calculated value of Central San's assets is determined as follows: • Land: The current value of investments in real property is estimated based on the opportunity value of like cash investments deposited in Central San's temporary April 24, 2018 Regular FINANCE Committee Meeting Agenda Packet- Page 39 of 192 Page 12 of 16 Capacity Fee Update Report Page 2 March 27, 2018 investments at the time of each purchase and held at interest to the present, rather than by attempting to determine actual market value. • 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 Francisco 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 Manual of Practice 27. 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 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 2018-19 by applying the valuation approach and facilities life cycles described above. The updated fees are: Fee Category Current Proposed % Change Gravity Service $6,300 per RUE $6,700 per RUE 6.3% Pumping Service $7,939 per RUE $8,336 per RUE 5.0% April 24, 2018 Regular FINANCE Committee Meeting Agenda Packet- Page 40 of 192 Page 13 of 16 Capacity Fee Update Report Page 3 March 27, 2018 The recommended fee calculation approach is a rational, practical, equitable and defensible method to determine the financial burden of new connections. A breakdown of the proposed Capacity Fees by asset category is presented in Table 1. Table 2 shows a comparison of the proposed Capacity Fees to the fees charged by neighboring agencies. The service life assumptions for each asset category are included in Table 3. Attached Supporting Documents: 1. Table 1 — Capacity Fees Calculation 2. Table 2— Comparison of Capacity Fees 3. Table 3—Average Useful Service Life April 24, 2018 Regular FINANCE Committee Meeting Agenda Packet- Page 41 of 192 CENTRAL CONTRA COSTA SANITARY DISTRICT Report Regarding Capacity Fee Update Table 1-Capacity Fees Calculation-FY 2018-19 (Buy-in to all assets. Values through 06/30/2017) Value per FY 2017- Asset Category Asset Value' RUE 18 Value Change Change (S/RUE) per RUE ($) N Land $50,891,879 $301 $292 $9 3.1% Facilities Treatment Plant/Outfall (45% @ 100 yrs+20% @ 75 yrs+35% @ 30 yrs $354,243,285 $2,095 $1,998 $97 4.9% Recycled Water Facilities(75% @ 50 yrs+25% @ 30 yrs) $18,621,970 $110 $106 $4 3.8% Collection System Trunks and Interceptors(30% @ 150 yrs+70% @ 100 yrs) $338,991,159 $2,005 $1,893 $112 5.9% Contributed Mains(100% @ 75 yrs) $658,442,000 not included District Renovated Mains(100% @ 100 yrs) $212,349,324 $1,256 $1,167 $89 7.6% Pumping Stations(45% @ 100 yrs+20% @ 75 yrs+35% @ 30 yrs) $81,061,594 $1,636 3 $1,639 ($3) -0.2% General Improvements(Buildings, Equipment, etc.) $66,786,528 $395 $383 $12 3.1% (50% @ 50 yrs+35% @ 25 yrs+ 15% @ 10 yrs) Major Repairs(100% @ 10 yrs) $11,586,433 $69 $64 $5 7.8% Sewer Construction Fund Balance(net of outstanding debt) $35,405,400 $209 $170 $39 22.9% Running Expense Fund & Debt Service Fund Balances $38,115,613 $225 $196 $29 14.8% Self Insurance Fund Balance $5,858,682 $35 $31 $4 12.9% TOTAL VALUE: $1,872,353,868 Capacity Fee-Gravity Service $1,132,850,273 $6,700 $6,300 $400 6.3% Capacity Fee-Pumped Service $1,213,911,868 $8,336 4 $7,939 $397 5.0% 169,113 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 escalated by opportunity cost 2.Asset value divided by total RUES unless otherwise noted 3. Pumped component equals asset value divided by pumped zone RUES 4. Gravity Service Capacity Fee plus pumped component 03/27/18 April 24, 2018 Regular FINANCE Committee Meeting Agenda Packet- Page 42 of 192 Page 15 of 16 CENTRAL CONTRA COSTA SANITARY DISTRICT Report Regarding Capacity Fee Update Table 2 — Comparison of Capacity Fees AGENCY CAPACITY FEE Dublin San Ramon Services District $17,470 Mt View Sanitary District $9,371 Proposed CCCSD Pumped Zone $8,336 Current CCCSD Pumped Zone $7,939 Antioch (Delta Diablo Sanitation District for Treatment) $7,836 Proposed CCCSD Gravity Zone $6,700 Current CCCSD Gravity Zone $6,300 Concord $5,043 West County Wastewater District $5,744 Pittsburg (Delta Diablo Sanitation District for Treatment) $4,358 Bay Point(Delta Diablo Sanitation District for Treatment) $3,940 Based on publicly available data as of March 27, 2018 April 24, 2018 Regular FINANCE Committee Meeting Agenda Packet- Page 43 of 192 Page 16 of 16 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 10 years Major Repairs/Replacements 10 years April 24, 2018 Regular FINANCE Committee Meeting Agenda Packet- Page 44 of 192