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Home My WebLink About04.b. Public Hearing4. b. Publc Hearings PUBLIC HEARING TO RECEIVE COMMENTS ON A PROPOSED ORDINANCE TO ADOPT AN UNCODIFIED AMENDMENT TO THE SCHEDULE OF ENVIRONMENTAL AND DEVELOPMENT-RELATED RATES AND CHARGES TO INCLUDE FEES FOR PARTICIPATION IN THE CONNECTION FEE DEFERRAL PILOT PROGRAM IN ACCORDANCE WITH DISTRICT CODE CHAPTER 6.30 SUGGESTED AGENDA July 1, 2010 Request Staff Report II. Hearing A. Open Hearing. B. Receive comments, if any. C. Close Hearing. III. Discussion IV. Recommended Actions: Conduct a public hearing to receive comments on a proposed ordinance adopting an uncodified amendment to the Schedule of Environmental and Development-Related Rates and Charges, established by Ordinance 259, to include fees for participation in the Connection Fee Deferral Pilot Program. Adopt the ordinance. N:\ENVRSEC\Position Papers\Miyamoto-Mills\2010\A,genda for Deferred Fees Fee Hearing 7-1-10 jm2.doc Central Contra Costa Sanitary District ' BOARD OF DIRECTORS POSITION PAPER Board Meeting Date: JUIy1,2010 No.: 4. b. Public Hearings Type of Action: ADOPT ORDINANCE Subject CONDUCT A PUBLIC HEARING TO RECEIVE COMMENTS ON A PROPOSED ORDINANCE ADOPTING AN UNCODIFIED AMENDMENT TO THE SCHEDULE OF ENVIRONMENTAL AND DEVELOPMENT-RELATED RATES AND CHARGES, ESTABLISHED BY ORDINANCE 259, TO INCLUDE FEES FOR PARTICIPATION IN THE CONNECTION FEE DEFERRAL PILOT PROGRAM IN ACCORDANCE WITH DISTRICT CODE CHAPTER 6.30 Submitted By: Initiating Dept./Div.: Jarred Miyamoto-Mills, Principal Engineer Engineering/Environmental Services REVIEWED AND RECOMMEN ED FOR BOARD ACTION: J. amot»~ C. Swanson A-~ ~ James M. K ly, General Manager ISSUE: At its June 3, 2010 regular meeting, the Board of Directors extended the District's Connection Fee Deferral Pilot Program to June 30, 2011. Staff recommended that fees for participation in the program be established to recover the cost of setup and administration of the program. RECOMMENDATION: Conduct a public hearing to receive comments on a proposed ordinance to establish participation fees for the Connection Fee Deferral Pilot Program. Adopt the ordinance. FINANCIAL IMPACTS: If the proposed ordinance is adopted and 2010-11 participation in the Connection Fee Deferral Pilot Program is similar to that in 2009-10, revenue generated by the participation fees would be about $35,000, which would recover the District's costs for setup and administration of the program. ALTERNATIVES/CONSIDERATIONS: The Board may decline to establish participation fees for the Connection Fee Deferral Pilot Program BACKGROUND: In the Spring of 2009, the homebuilding community contacted counties, cities and special districts including CCCSD, requesting that each agency consider allowing deferred payment of impact and utility connection fees at the close of escrow for new -homes as allowed by recent legislation, rather than continuing the current practice of collecting.these fees when a building permit is issued or utility service connections are made. The homebuilders believed that the then-prevailing economic recession., specifically the credit and cash flow crisis, had resulted in an inequitable and unjust situation for builders. N:\ENVRSEC\Position Papers\Miyamoto-Mills\2010\PP Deferral Fee Program to Add Fees Final 7-1-10.doc Page 1 of 2 POSITION PAPER Board Meeting Date: July 1, 2010 Subject: CONDUCT A PUBLIC HEARING TO RECEIVE COMMENTS ON A PROPOSED ORDINANCE ADOPTING AN UNCODIFIED AMENDMENT TO THE SCHEDULE OF ENVIRONMENTAL AND DEVELOPMENT-RELATED RATES AND CHARGES, ESTABLISHED BY ORDINANCE 259, TO INCLUDE FEES FOR PARTICIPATION IN THE CONNECTION FEE DEFERRAL PILOT PROGRAM IN ACCORDANCE WITH DISTRICT CODE CHAPTER 6.30 The Board considered the homebuilders' request and at its June 4, 2009 regular meeting, adopted Resolution 2009-033 establishing aone-year Connection Fee Deferral Pilot Program. At its June 3, 2010 regular meeting, the Board adopted Resolution 2010-033 extending the pilot program to June 30, 2011 and set July 1, 2010 as the date for a public hearing to receive comments on a proposed ordinance to establish participation fees for the pilot program. Staff has prepared the attached draft ordinance to amend (in uncodified form) the Schedule of Environmental and Development-Related Rates and Charges established by Ordinance 259 to include the following two fees: A processing fee of $450 for each separate "Memorandum of Agreement" prepared and recorded by staff. This fee would recover the cost of staff labor and overhead for the approximately 4'/z hours required for preparation of agreements, releases and related correspondence and for recording; and A participation fee of $110 for each separate property (parcel) for which fees are deferred. The participation fee would be in addition to the agreement processing fee and would recover the cost setting up the program, lost interest and of staff labor to enter and monitor deferral and subsequent payment of fees in the permit counter data system. Legal notices for the public hearing were published in the Contra Costa Times and the San Ramon Valley Times, and were posted on the notice board at the District Headquarters Office Building. In addition, representatives of Shapell Homes and the Building Industries Association of the Bay Area were separately notified. RECOMMENDED BOARD ACTION: Conduct a public hearing to receive comments on a proposed ordinance adopting an uncodified amendment to the Schedule of Environmental and Development-Related Rates and Charges, established by Ordinance 259, to include fees for participation in the Connection Fee Deferral Pilot Program. Adopt the ordinance. N:\ENVRSEC\Posilion Papers Wliyamoto-Mills\2010\PP Deferral Fee Program to Add Fees Final 7-t-10.doc Page 2 of 2 ORDINANCE NO. AN ORDINANCE OF THE CENTRAL CONTRA COSTA SANITARY DISTRICT ADOPTING AN UNCODIFIED AMENDMENT TO THE SCHEDULE OF ENVIRONMENTAL AND DEVELOPMENT-RELATED RATES AND CHARGES TO INCLUDE FEES FOR PARTICIPATION IN THE CONNECTION FEE DEFERRAL PILOT PROGRAM IN ACCORDANCE WITH DISTRICT CODE CHAPTER 6.30 WHEREAS, the Board of Directors (Board) of the Central Contra Costa Sanitary District (CCCSD) finds that CCCSD has incurred and will incur substantial costs to set up and administer the Connection Fee Deferral Pilot Program established by Resolution 2009- 034, and extended to June 30, 2011 by Resolution 2010-033; and WHEREAS, the Board finds that it is necessary to charge those customers who participate in the pilot program to recover the reasonable costs of the pilot program; and WHEREAS, CCCSD staff has analyzed the actual setup and administration costs for the pilot program including direct costs, staff labor, overhead and interest revenue lost; and WHEREAS, the Board finds that the fees to be added to the Schedule of Environmental and Development-Related Rates and Charges, as set forth below in Section 1 of this Ordinance, reasonably represent the actual costs for setup and administration of the pilot program; and WHEREAS, the CCCSD Board of Directors 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 fees proposed will merely reimburse CCCSD for staff costs and expenses. THEREFORE, the Board of Directors of the Central Contra Costa Sanitary District does hereby ordain as follows: Section 1 (To be uncodified That an uncodified amendment to include fees for participation in the Connection Fee Deferral Pilot Program in Item (E) Miscellaneous, of the Schedule of Environmental and Development-Related Rates and Charges established by Ordinance 259, is hereby adopted. Said amended Item (E) shall read as set forth in full in Exhibit A, attached hereto and by this reference made a part hereof, pursuant to the provisions of District Code Chapter 6.30. Ordinance No. Page 2 of 2 Section 2 This Ordinance shall be a general regulation of the District and shall be published in the Contra Costa Times, a newspaper of general circulation, published and circulated within the District and shall be effective on the eighth day following said publication. Said fees shall expire on June 30, 2011, unless the Connection Fee Deferral Pilot Program is extended by the District Board of Directors, in which case the fees shall remain in effect until the program expires, or until they are amended by Ordinance. PASSED AND ADOPTED by the Board of Directors of the Central Contra Costa Sanitary District on the 1st day of July 2010, by the following vote: AYES: Members: NOES: Members: ABSENT: Members: Michael R. McGill President of the Board of Directors Central Contra Costa Sanitary District County of.Contra Costa, State of California COUNTERSIGNED: Elaine R. Boehme Secretary of the Central Contra Costa Sanitary District County of Contra Costa, State of California Approved as to form: Kenton L. Alm Counsel for the District EXHIBIT A CENTRAL CONTRA COSTA SANITARY DISTRICT SCHEDULE OF ENVIRONMENTAL AND DEVELOPMENT-RELATED RATES & CHARGES (Uncodified) Item (E) Miscellaneous, of the Schedule of Environmental and Development-Related Rates and Charges established by Central Contra Sanitary District Ordinance No. 259, adopted April 15, 2010 was amended by Central Contra Costa Sanitary District Ordinance No. _ ,adopted on July 1, 2010, to read as follows: Fee Category Amount (E) MISCELLANEOUS District services provided for private sewer projects. (E-1) Engineering =private sewer projects Actual Expense (E-2) Soil evaluation -private sewer projects, Actual Expense (E-3) Surveying Actual Expense (E-4) Minimum annual interest rate for CADS and Capacity Use Program 6.00% Document I Plan Copying Fees 8 1/2" x 11"; 8 1l2" x 14"; 11" x 17" (per sheet) $0.15 24" x 36" Plan (per sheet) $3.00 CCCSD Standard Specifications $20.00 (E-5) Processing fee for each separate "Memorandum of Agreement" $450 (E-6) In addition to E-6 , artici ation fee for each se arate roe Parcel $110 Page 1 Item No. 4.b. Central Contra Costa Sanitary District Participation Fees for the Connection Fee Deferral Pilot Program Public Hearing July 1, 2010 Agreement Processing Fee • Staff Labor and Overhead - Administrative Assistant: 3 hrs Cc3 $ 90/hr = $ 270 - Engineering Assistant II: 0.5 hrs @ $106/hr = $ 53 - Engineering Assistant III: 1 hrs @ $127/hr = $ 127 Totai: $ 450 1 Parcel Fee • Staff Labor and Overhead - Engineering Assistant II: 0.5 hrs @ $106/hr = $ 53 • Program Setup ($6,000 / 200 Parcels) _ $ 28 - Prepare Resolution - Develop Procedures - Draft Documents - Legal Review • Opportunity Cost (Lost Interest) _ $ 2s Total: $ 110 Questions.......? 2