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HomeMy WebLinkAbout07.a.3) Written Announcements7.a.3) Board Meeting of November 18, 2010 Written Announcements Fees Information a) Proposition 26 - Re- categorize State and Local Fees and Taxes On November 2, 2010, California voters approved Proposition 26. This measure re- categorizes many State and local fees as taxes, which require two- thirds approval by the electorate for local governments and two- thirds legislative approval for those imposed by the State. The stated purpose of the Proposition was to eliminate the ability for both local and State legislators to increase revenues by labeling some charges as regulatory fees rather than as new taxes which would require voter approval or a two- thirds vote of both California legislative houses. Proponents state "fees couched as "regulatory" but which exceed the reasonable cost of the actual regulation or simply imposed to raise revenue for a new program and are not part of any licensing or permitting program are actually taxes and should be subject to the limitations applicable to the imposition of taxes." Although this Proposition will likely have substantial effect on both a Statewide and local level over a period of time, there are specific exceptions created within this Constitutional amendment which protect at least most of the basic fee structure currently used by the District. The District's sewer service charges are imposed consistent with the provisions set forth in Proposition 218 and this new Proposition creates an exception for fees which are adopted pursuant to the Constitutional amendments enacted by Proposition 218. There is a second exception which essentially provides that a fee or charge will not be deemed as a tax to the extent that those who do not pay the fee will not receive the service. The second exception would appear to encompass the fees and charges that are imposed by the District on new connections. Pursuant to the same exception, the Environmental Fees and Charges imposed by the District for inspections and plan review and similar services should also be exempted. It is likely that a number of existing local fees such as AB 939 recycling fees, and other general program - related fees may be subject to these new approval requirements in the event there is a necessity to increase such fees in the future. Undoubtedly there will be substantial litigation on the breadth of Proposition 26 which will ultimately determine the breadth of its applicability to local fees. b) Capacitv Fee Installment Plan Update In September 2010, the Board established a new program allowing installment payments for Capacity Fees when a property owner converts a home from a septic tank to District sewer service. The first customer to take advantage of this option is one of the property owners in the Sunnybrook Road CAD whose septic tank recently failed. Weather permitting, the Sunnybrook Road CAD sewer installation will be completed within two weeks. Project Updates c) Solids Handling Improvements, District Project 7260 The Solids Handling Improvements Project constructed a new sludge loading facility and is substantially complete. The operation and maintenance trainings are scheduled for November 17, 18 and 19, 2010. Starting the week of November 29, 2010, dewatered sludge will be loaded into the silos for functionality testing. Initially one silo will be partially filled with sludge (about 45 feet in height). Staff will verify the proper functioning of mechanical, electrical, and instrumentation components of the system. Staff also tests the new odor control unit. After this test is complete, two silos (out of a total of three silos) will be fully filled with 250 tons of de- watered sludge. This equates to up to 18 truck loads. Sludge will be disposed at Keller Canyon landfill. After successful testing, the system will be cleaned and readied for future service. General Updates d) San Ramon Participation in Household Hazardous Waste Collection Facility The San Ramon City Council voted on 11/9/2010 to utilize Curbside Inc. to provide Household Hazardous Waste (HHW) services in San Ramon. Beginning January 2011, their plan is to use Curbside Inc. to collect household hazardous waste "door -to- door" on an on -call basis. The annual cost of this program is estimated to be approximately $135,000, which will be paid for by increasing San Ramon garbage rates and using other solid waste funds. A cost saving measure included in the plan is to eliminate the annual mobile HHW collection event sponsored with the District as well as discontinue the agreement with the District to allow the approximately 5,200 homes in San Ramon that are outside of our service area to utilize the HHW Collection Facility. Last year, San Ramon paid the District roughly $59,000 for the homes that are outside of our service area and another $6,000 for their portion of the mobile collection event. San Ramon's overall participation in the HHW program last year was about 4.2% (or 1,226 cars) of the 29,434 total cars served by the program. The HHW services agreement with the City for homes outside of the service area is renewed annually in September and includes a termination clause requiring 60 days written notice. Mobile collection events are requested by the City annually and are not required. We are expecting a formal request from the City to terminate our agreement effective January 1, 2011, and to pay for costs incurred this fiscal year, approximately $25,000. When this request is received we will need to determine if we will relax the 60 day notice requirement. Staff will contact the Chair of the Board HHW Committee to determine if they would like to have a meeting to discuss the pending termination of the agreement to provide HHW services to San Ramon residents and small business generators outside of the District service area.