HomeMy WebLinkAbout05. Public hearing to consider 4-year Recycled Water rate increase Page 1 of 11
Item 5.
CENTRAL SAN BOARD OF DIRECTORS
POSITION PAPER
MEETING DATE: APRIL 18, 2019
SUBJECT: CONDUCT PUBLIC HEARING TO RECEIVE COMMENT AND CONSIDER
ADOPTING UNCODIFIED ORDINANCE NO. 305 ESTABLI SHI NG A
"SCHEDULE OF RECYCLED WATER CHARGES" IN ACCORDANCE WITH
DISTRICT CODE CHAPTER 6.38 INCREASING THE RECYCLED WATER
CHARGE FOR RECYCLED WATER CUSTOMERS BY PERCENT PER
YEAR FOR THE NEXT FOUR FISCAL YEARS (FY) 2019-20 THROUGH
FY 2022-23
SUBMITTED BY: INITIATING DEPARTMENT:
DANEA GEMMELL, PLANNING & ENGINEERING AND TECHNICAL SERVICES-
DEVELOPMENT SERVICES DIVISION PDS-RATES AND FEES
MANAGER
REVIEWED BY: PHILIP LEIBER, DIRECTOR OF FINANCE AND ADMINISTRATION
JEAN-MARC PETIT, DIRECTOR OF ENGINEERING & TECHNICAL
SERVICES
ANN SASAKI, DEPUTY GENERAL MANAGER
Roger S. Bailey Kenton L. Alm
General Manager District Counsel
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.
April 18, 2019 Regular Board Meeting Agenda Packet- Page 51 of 91
Page 2 of 11
BACKGROUND
Chapter 6.38 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.
Recycled Water rates were presented and discussed at the January 15, 2019 Board Workshop and
direction was given to proceed with a Proposition 218 notification for a three percent increase in retail
charges for recycled water for each of the next four fiscal years.
Notices of the public hearing were mailed to property owners whose parcels are either currently served or
could reasonably be served by Central San's recycled water pipelines. Legal notices were published on
April 4 and April 11, 2019, in the Contra Costa Times and the San Ramon Valley Times for this public
hearing.
Only customers who currently receive recycled water from Central San's recycled water distribution
system are required to pay 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 some other amount lower than the three percent annual increases listed in
notices mailed to property owners.
FINANCIAL IMPACTS
The proposed charges are designed to recover Central San's costs incurred for treating and distributing
recycled water. Central San proposes a three percent recycled water rate increase each year for the next
four years as shown in the table below:
Maximum Maximum Maximum Maximum
User Group Current Proposed Rate Proposed Rate Proposed Rate Proposed Rate
Rate Effective Effective Effective Effective
July 1, 2019 July 1, 2020 July 1, 2021 July 1, 2022
Class I
(former $3.69 $3.80 $3.91 $4.03 $4.15
potable users)
Class I I
(former
canal/well $1.76 $1.81 $1.86 $1.92 $1.98
users)
All rates shown in dollars per 1,000 gallons
COMMITTEE RECOMMENDATION
This matter was not reviewed by a Board Committee.
April 18, 2019 Regular Board Meeting Agenda Packet- Page 52 of 91
Page 3 of 11
RECOMMENDED BOARD ACTION
Conduct a public hearing to receive comments 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 San incurs substantial costs to provide recycled water.
• It is necessary to charge customers the reasonable cost of providing the recycled water.
• The proposed charges do not exceed Central San's actual 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.)
Strategic Plan re-In
GOAL SIX: Embrace Technology, Innovation and Environmental Sustainability
Strategy 1 -Augment the region's water supply
ATTACHMENTS:
1. Proposition 218 Notice
2. Proposed Ordinance
3. Presentation
April 18, 2019 Regular Board Meeting Agenda Packet- Page 53 of 91
Page 4 of 11
Attachment 1
Proposition 218 Notification
A PUBLIC HEARING ON PROPOSED RECYCLED WATER RATE INCREASES
WILL BE HELD ON APRIL 18, 2019, AT 1:30 P.M.
AT THE CENTRAL SAN BOARD ROOM, 5019 IMHOFF PLACE, MARTINEZ CA
Recycled Water
The Central Contra Costa Sanitary District's Recycled Water Program provides high-quality recycled
water delivered through pipelines in Martinez, Pleasant Hill and Concord. High-volume water users
voluntarily purchase recycled water from Central San for compatible uses rather than using potable
water, groundwater, or canal water. Central San's recycled water rates continue to be lower than the
rates for local potable and canal water supplies.
Central San is notifying property owners close to recycled water pipelines of a proposed rate
increase. This notification in no way obligates property owners who are not currently recycled water
customers to obtain recycled water service from Central San. Property owners who wish to protest
the proposed rate increase should follow the procedure outlined below and clearly indicate that they
are protesting the increase in the recycled water fee.
CURRENT & PROPOSED RECYCLED WATER RATES
CURRENT PROPOSED RATE PROPOSED RATE PROPOSED RATE PROPOSED RATE
USER GROUP RATE EFFECTIVE EFFECTIVE EFFECTIVE EFFECTIVE
(per thousand JULY 1,2019 JULY 1,2020 JULY 1,2021 JULY 1,2022
gallons) per thousandgallons) per thousandgallons) per thousandgallons) per thousandgallons)
Class I (former
potable users) $3.69 $3.80 $3.91 $4.03 $4.15
Class 11 (former
canal/well users) $1.76 $1.81 $1.86 $1.92 $1.98
The Proposition 218 Process
Public comments and written protests will be accepted at the Public Hearing listed above.
Written protests may be mailed or hand-delivered to the Secretary of the District at the above
address. All written protests must be received prior to the close of the Public Hearing. Scanned
copies of signed protest letters may also be submitted by fax to (925) 954-6940 or email to
kyoung@centralsan.org.
Written protests must include the property's address or assessor's parcel number (APN), must
be signed by the property owner or tenant, and must be received prior to the close of the public
hearing. As required by law, the proposed rate increases will not be imposed if valid written
protests are received from a majority of affected property owners. Additional information about
filing a protest can be obtained by calling (925) 335-7702.
April 18, 2019 Regular Board Meeting Agenda Packet- Page 54 of 91
Page 5 of 11
Attachment 2
ORDINANCE NO. 305
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, the 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 (FY) 2019-20, 3% for FY 2020-21, 3% for FY 2021-22,
and 3% for FY 2022-23; 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 18, 2019 as set forth in the Schedule of Recycled Water Charges below; 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 45
days prior to the public hearing on the proposed increase conducted on April 18,
2019.
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 18, 2019, 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 cost 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.
April 18, 2019 Regular Board Meeting Agenda Packet- Page 55 of 91
Page 6 of 11
Central Contra Costa Sanitary District
Ordinance No. 305
Page 2of3
d. This action is categorically exempt from the California Environmental Quality Act
(CEQA) pursuant to Section 15273 (a) (1-4) of District CEQA Guidelines.
NOW, THEREFORE, the Board of Directors of Central San does ordain as follows:
Section 1 (To be Uncodified)
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 6.38.
Schedule of Recycled Water Charges
MAXIMUM MAXIMUM MAXIMUM MAXIMUM
CURRENT PROPOSED PROPOSED PROPOSED PROPOSED
RATE RATE RATE RATE RATE
USER GROUP (per EFFECTIVE EFFECTIVE EFFECTIVE EFFECTIVE
thousand JULY 1, 2019 JULY 1, 2020 JULY 1, 2021 JULY 1, 2022
gallons) (per thousand (per thousand (per thousand (perthousand
gallons) gallons) allonsgallons)
Class I
(former $3.69 $3.80 $3.91 $4.03 $4.15
potable users)
Class II
(former
cornier 11 $1.76 $1.81 $1.86 $1.92 $1.98
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 of Recycled
Water Charges and shall remain in effect until amended or replaced by ordinance.
Section 2
All ordinances, parts of ordinances and any provision of Ordinance No. 295 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 is
determined invalid or unconstitutional, or during any period where the new rates are
stayed due to a legal challenge, such portions of Ordinance No. 295 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. 295 had not been
repealed.
April 18, 2019 Regular Board Meeting Agenda Packet- Page 56 of 91
Page 7 of 11
Central Contra Costa Sanitary District
Ordinance No. 305
Page 3 of 3
With respect, however, to violations, rights accrued, liabilities accrued, or appeals taken,
prior to the effective date of this ordinance, under any ordinance, or part of an
ordinance, such 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 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, 2019. 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 18th day of
April 2019, by the following vote:
AYES: Members:
NOES: Members:
ABSTAIN: Members:
David R. Williams
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 18, 2019 Regular Board Meeting Agenda Packet- Page 57 of 91
'{ '."f1w. Attachment 3
FY 2019-20 - FY 2022 -
I
RECYCLED WATER
RATE HEARING_ Board Meeting
April 18, 2019
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April 18, 2019 pard Meeti
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RECOMMENDED BOARD ACTION
• Conduct a public hearing to receive comment and consider adopting
a proposed ordinance to establish an uncodified "Schedule of
Recycled Water (ReW) Charges" increasing the annual ReW rates
consistent with the chart below, representing 3% rate increases for
each of the next four fiscal years:
Annual Rate Increases
Zone 1—
Former Potable $3.69 $3.80 $3.91 $4.03 $4.15 $4.27 $4.40 $4.53 $4.67 $4.81 $4.95
($/1,000 gallons)
Rate Increase 3% 3% 3% 3% 3% 3% 3% 3% 3% 3% 34%
Zone 1 —
Former Canal/Well
($11,000 gallons) $1.76 $1.81 $1.86 $1.92 $1.98 $2.04 $2.10 $2.16 $2.22 $2.29 $2.36
Rate Increase 3% 3% 3% 3% 3% 3% 3% 3% 3% 3% 34%
CENT ` 2
■ .
RECOMMENDED BOARD ACTION FOR REW
• Upon conclusion of the public hearing, adopt the attached proposed
uncodified ordinance, which includes the following findings:
• Central San 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
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OwlRate Increase Rate Increase Rate Increase Rate
Class I (former potable $0.11 $3.80 $0.11 $3.91 $0.12 $4.03 $0.12 $4.15
users)
Class 11 (former $0.05 $1.81 $0.05 $1.86 $0.06 $1.92 $0.06 $1.98
canal well users)
(Rates shown in dollars per thousand gallons)
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