Loading...
HomeMy WebLinkAbout06. Public hearing to adopt two ordinances updating Capacity Fees and Environmental & Development-Related Fees and Charges Page 1 of 35 Item 6. CENTRAL SAN BOARD OF DIRECTORS POSITION PAPER MEETING DATE: JUNE 4, 2020 SUBJECT: CONDUCT PUBLIC HEARING TO RECEIVE PUBLIC COMMENT AND CONSIDER ADOPTING THE FOLLOWING ORDINANCES TO BECOME EFFECTIVE JULY 1, 2020: • UNCODIFIED ORDINANCE NO. 309AMENDING THE SCHEDULE OF CAPACITY FEES, RATES, AND CHARGES, REPLACING ORDINANCE NO. 306 IN ACCORDANCE WITH DISTRICT CODE CHAPTER 6.12; AND • UNCODIFIED ORDINANCE NO. 310 AMENDING THE SCHEDULE OF ENVIRONMENTAL AND DEVELOPMENT-RELATED FEES AND CHARGES, REPLACING ORDINANCE NO. 307 IN ACCORDANCE WITH DISTRICT CODE CHAPTER 6.30 DATA ISAVAILABLE, AS REQUIRED BYGOVERNMENT CODE TITLE 7, DIVISION 1, CHAPTER 8, SECTION 66016. IF YOU HAVE QUESTIONS, PLEASE CONTACT SENIOR ENGINEER THOMAS BRIGHTBILL BYE-MAIL AT TBRIGHTBILL@ CENTRAL SAN.ORG SUBMITTED BY: INITIATING DEPARTMENT: BRYAN MCGLOIN, MANAGEMENT ANALYST ENGINEERING AND TECHNICAL SERVICES- THOMAS BRIGHTBILL, SENIOR ENGINEER PDS-RATES AND FEES REVIEWED BY: DANEA GEMMELL, PLANNING AND DEVELOPMENT SERVICES DIVISION MANAGER JEAN-MARC PETIT, DIRECTOR OF ENGINEERING AND TECHNICAL SERVICES Roger S. Bailey Kenton L. Alm General Manager District Counsel June 4, 2020 Regular Board Meeting Agenda Packet- Page 30 of 449 Page 2 of 35 ISSUE State Law and District Code requires that a public hearing be held to receive public comment on ordinances which revise Capacity Fees and the Environmental and Development-Related Fees and Charges. BACKGROUND Capacity Fees Central San charges a Capacity Fee when properties first connect to the 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 Central San's assets and the number of Central San customers. California Senate Bill 1769, enacted in September 1993, defines Capacity Charges for water and sewer agencies in Section 66013 of the California Government Code. The equity buy-in method used by Central San conforms to the requirements contained in Section 66013. A recommended ordinance to establish the following proposed Capacity Fees is attached: Fee Category Current Proposed % Change Gravity Service $6,589 per RUE* $6,803 per RUE 3.2% Pumping Service $8,175 per RUE $8,388 per RUE 2.6% *RUE = Residential Unit Equivalent Environmental and Development-Related Fees and Charges Chapter 6.30 of the District Code includes provisions for the Board of Directors (Board)to adopt an uncodified schedule of fees and charges for environmental and development services provided to property owners, contractors, developers, septic and grease waste haulers, and permitted industrial users. These services include permit counter assistance; plan review; construction inspection for private side sewers and public main line extensions; addition of new sewers, parcels, and permit information to Central San maps; administration of source control permits and inspections; and septic and grease hauler permitting, sampling, and treatment. Following a review of the fees and charges by Central San staff, it is recommended that they be revised to reflect changes in the costs to provide the services, including updated labor costs. Information regarding the proposed changes is included in the attached report. A comparison of current and staff-recommended fees and charges is presented in Exhibit A to the attached proposed ordinance. If the proposed revisions to the Environmental and Development-Related Fees and Charges are adopted by Central San's Board, 21 charges would remain unchanged, 54 charges would increase, and 10 charges would decrease with 2 new fees and no fees eliminated. ALTERNATIVES/CONSIDERATIONS The Board may decline to adjust the Schedule of Capacity Fees. In this event, the fees that went into effect on July 1, 2019 would continue. This is not recommended as capacity fees would not accurately reflect the value of each parcel' s share of Central San's assets. The Board may decline to adjust some or all of the Environmental and Development-Related Fees and June 4, 2020 Regular Board Meeting Agenda Packet- Page 31 of 449 Page 3 of 35 Charges. In this event, the fees that went into effect on July 1, 2019 would continue. This is not recommended as Central San would not fully recover costs expended in providing the corresponding environmental and development-related services. FINANCIAL IMPACTS If the recommended Capacity Fees are adopted, staff estimates that approximately$160,000 more capacity fee revenue would be generated by the change in fiscal year (FY) 2020-21. This projection is based on the projected development of 750 RUEs. The proposed Environmental and Development-Related Fees and Charges are designed to recover Central San's direct and indirect labor costs, other operating costs, and administrative overhead costs incurred in providing environmental and development-related services. If the recommended Environmental and Development-Related Fees and Charges are adopted, staff estimates that$56,000 in additional revenue will be generated in FY 2020-21. This projection is based on the range of increases shown in the attached staff report and assumes that the level of development would be approximately 10% lower than that of the current fiscal year. COMMUNITY OUTREACH Staff conducted a coordinated outreach program to inform and solicit input from stakeholders and interested customers regarding the proposed Capacity Fees and the proposed Environmental and Development-Related Fees and Charges. Notices of the public hearing were posted and published on May 21 and 28, 2020, in the Contra Costa Times and San Ramon Valley Times. I n addition, approximately 420 letter reports, including the proposed schedule of rates and charges, were distributed to developers, engineers, architects, contractors, waste haulers, representatives of the Building Industry Association of the Bay Area, and others who have requested notice of fee increase proposals. "As of May 14, 2020, no stakeholders nor members of the public had contacted Central San with comments.Any comments received after May 14, 2020 will be presented to the Board of Directors at the public hearing." COMMITTEE RECOMMENDATION The Finance Committee reviewed the proposals at its April 21, 2020 meeting and recommended approval. RECOMMENDED BOARD ACTION Hold the public hearing. Once the public hearing has concluded: 1. Adopt the attached proposed uncodified ordinance, revising the "Schedule of Capacity Fees, Rates, and Charges" effective July 1, 2020, which includes the following findings: • Central San has made a substantial investment in assets that will benefit new users. • 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 and other assets. o There is a strong and reasonable relationship between the actual added burden imposed by new users and the proposed Capacity Fee. o 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 June 4, 2020 Regular Board Meeting Agenda Packet- Page 32 of 449 Page 4 of 35 capacity in Central San's facilities; ■ Addition to, and expansion of, facilities when needed or required to meet legal and regulatory requirements; ■ Equitable adjustment of contributions among current, new, and contractual users; and ■ New users' buy-in to all of Central San's assets including facilities and the balance in the Sewer Construction Fund. • 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. o The proposed fees, rates, and charges are exempt from the California Environmental Quality Act (CEQA) per section 6.12.020 of the District Code. 2. Adopt the proposed uncodified ordinance, revising the Schedule of Environmental and Development-Related Fees and Charges effective July 1, 2020, including the following findings: • Central San incurs substantial costs to provide environmental and development-related services. • It is necessary to charge customers and other users to recover the reasonable cost of providing the services. • The proposed fees and charges reasonably represent Central San's actual costs to provide the services. • The proposed fees and charges are exempt from CEQA. (Four affirmative votes are required for adoption.) Strategic Plan Tie-In GOAL THREE: Be a Fiscally Sound and Effective Water Sector Utility Strategy 2- Manage costs ATTACHMENTS: 1. Proposed Capacity Fee Ordinance 1.a. Exhibit A to Capacity Fee Ordinance 2. Report regarding Capacity Fee Update 3. Proposed Environmental and Development Fee Ordinance 3.a. Exhibit A to Environmental and Development Fee Ordinance 4. Report regarding Environmental and Development Fees and Charges June 4, 2020 Regular Board Meeting Agenda Packet- Page 33 of 449 Page 5 of 35 Attachment 1 ORDINANCE NO. 309 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 2019-20 Budget," and the Staff Report on Proposed Capacity Fee Program dated April 8, 2020; and WHEREAS, these studies also included the Wastewater Capacity Fee Review Study dated May 28, 2018 by Black & Veatch which reviewed Central San's methodology and calculations; 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 4, 2020, 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. June 4, 2020 Regular Board Meeting Agenda Packet- Page 34 of 449 Page 6 of 35 Central Contra Costa Sanitary District Ordinance No. 309 Page 2 of 3 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. 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 balance in the Sewer Construction 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. 306 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. 306 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 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. June 4, 2020 Regular Board Meeting Agenda Packet- Page 35 of 449 Page 7 of 35 Central Contra Costa Sanitary District Ordinance No. 309 Page 3 of 3 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, 2020. PASSED AND ADOPTED this 4th day of June, 2020, by the Board of Directors of the Central Contra Costa Sanitary District by the following vote: AYES: Members: NOES: Members: ABSENT: Members: Michael R. McGill, P.E. 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 June 4, 2020 Regular Board Meeting Agenda Packet- Page 36 of 449 Page 8 of 35 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. 309 adopted June 4, 2020. 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, 2020, in accordance with the provisions of District Code Chapter 6.12. Gravity Capacity Fee $6,803 / RUE* Pumping Capacity Fee $1,585 / RUE *A residential unit equivalent (RUE) is a measure of sewage volume and strength equivalent to a typical residential household. Gravity Zone Fee (Zone 1) = Gravity Capacity Fee Pumped Zone Fee (Zone 2) = Gravity Capacity Fee + Pumping Capacity Fee Residential Unit Equivalence (RUE) Factors0) 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(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 Accessory structure Dwelling Unit 0.847 0.847 connected to sewer on same parcel with Single- family residence (not meeting Accessory Dwelling Unit(3) criteria LE Accessory Dwelling Dwelling Unit 0 0 Unit(3)—within existing space LN Accessory Dwelling 1,000 sq. ft. 0.425 0.425 Unit(3) — new structure LC Common areas 1,000 sq. ft. 0.200 0.200 Page 1 of 5 June 4, 2020 Regular Board Meeting Agenda Packet- Page 37 of 449 Page 9 of 35 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 Gravity Pumping Eligible for Capacity Capacity Capacity Use Unit of Fee RUE Fee RUE Use Charge Code User Group Measure(2) Factor Factor Program 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 sq. ft. 21.127 22.829 yes AW Car washes with recycling 1,000 sq. ft. 3.522 3.805 yes Barbers / beauty salons / BB pet 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 sq. 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. 1.562 1.294 RN Bars 1,000 sq. ft. 1.562 1.294 Page 2 of 5 June 4, 2020 Regular Board Meeting Agenda Packet- Page 38 of 449 Page 10 of 35 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 Gravity Pumping Eligible for Capacity Capacity Capacity Use Unit of Fee RUE Fee RUE Use Charge Code User Group Measure(2) Factor Factor Program RI Ice cream parlors 1,000 sq. ft. 1.562 1.294 RY Yogurt shops 1,000 sq. ft. 1.562 1.294 RS Restaurants dine-in 1,000 sq. ft. 4.010 2.738 yes RT Restaurants (take-out) 1,000 sq. ft. 4.010 2.738 yes Patio seating in excess RC of 300 square feet(4), 1,000 sq. ft. 1.166 0.825 banquet facilities RB Bakeries (retail) 1,000 sq. ft. 4.061 2.178 yes BL Laundromats 1,000 sq. ft. 13.506 14.594 yes SF Skilled nursing facilities 1,000 s . ft. 2.216 2.347 yes 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 1,000 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. (3)Accessory Dwelling Units are 1,200 sq. ft. maximum and meet criteria of Gov't Code Sect 65852.2. (4) Patio seating capacity fees charged for patios at Dine-in Restaurants (RS) and Bars (RN). Page 3 of 5 June 4, 2020 Regular Board Meeting Agenda Packet- Page 39 of 449 Page 11 of 35 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 mg / I TSSRU = 215 m / I A = 0.69 B = 0.14 C = 0.17 Page 4 of 5 June 4, 2020 Regular Board Meeting Agenda Packet- Page 40 of 449 Page 12 of 35 SCHEDULE OF CAPACITY FEES, RATES AND CHARGES — CONTINUED Capacity Use Charge Program The minimum "initial payment" threshold gravity capacity fee RUE factor shall be 1.562 RUE/per one thousand square feet. Capacity Charge Capacity Use "Initial Payment" 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 1.562 21.829 $1,142.03 $6.15 AW Car washes with recycling 1.562 3.805 $ 114.41 $3.70 BL Laundromats 1.562 14.594 $ 697.19 $5.87 HP Hospitals 1.562 3.124 $ 77.58 $3.05 LH Hotel/Motel 1.562 1.926 $ 21.25 $2.05 RB Bakeries (retail) 1.562 2.178 $ 145.87 $8.23 RS Restaurants (dine-in) 1.562 2.738 $ 142.89 $6.42 RT Restaurants (paper 1.562 2.738 $ 142.89 $6.42 service / no dishwashers) SF Skilled nursing facilities 1.562 2.347 $ 38.17 $1.96 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. Page 5 of 5 June 4, 2020 Regular Board Meeting Agenda Packet- Page 41 of 449 Page 13 of 35 CENTRAL CONTRA COSTA SANITARY DISTRICT Report Regarding the Capacity Fee Update April 8, 2020 INTRODUCTION The Central Contra Costa Sanitary District (Central San) charges a Capacity Fee when properties are first connected to the public sewer or when an increase, expansion, or change of use on a non-residential parcel which creates an added burden on the wastewater collection and treatment system. Each year this fee is updated based on changes to the value of Central San's assets and the number of Central San's customers. This memo summarizes the basis for the Capacity Fee and describes the calculation used for the fee update. BACKGROUND The total value of Central San's existing assets (approximately $1.9 billion) is much greater than the value of future facilities expansion needed to accommodate future customers. While Central San's FY 2019-20 Budget lists over $800 million in capital projects over the next 10 years, most of these projects are driven by renovation, regulatory compliance, replacement or upgrading of facilities to maintain capacity for both current and prospective customers. Central San believes that its 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. Central San's Capacity Fee methodology and calculations were reviewed by consultants Black & Veatch in the fall of 2017. Their March 2, 2018 report titled Wastewater Capacity Fee Review Study made the following findings: • The equity-buy-in methodology used by Central San is appropriate. • Central San's use of Replacement Cost Less Depreciation (RCLD) is appropriate. • The exclusion of contributed assets from the calculation is appropriate in order to avoid double recovery of asset values. • The use of different service zones for gravity and pumped zones is appropriate. June 4, 2020 Regular Board Meeting Agenda Packet- Page 42 of 449 Page 14 of 35 Capacity Fee Update Report Page 2 April 8, 2020 CALCULATION APPROACH The Capacity Fee is adjusted each year to reflect annual 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: Rather than attempting to determine actual market value, 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 investments at the time of each property purchase and held at interest to the present. • 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. The depreciation schedule assumes no salvage value remaining at the end of the asset's useful life. 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 Balance: Prior fiscal year ending balance for the Sewer Construction Fund, less the principal value of Central San's outstanding debt, is used. The inclusion of the Running Expense and Self Insurance Funds was reviewed by staff and District Counsel who determined that it was no longer appropriate to include those two items in the fee calculation. Contributed assets are generally not included in the calculation in order to avoid double recovery of costs, as described in WEF's 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) June 4, 2020 Regular Board Meeting Agenda Packet- Page 43 of 449 Page 15 of 35 Capacity Fee Update Report Page 3 April 8, 2020 RECOMMENDED CAPACITY FEE Staff recommends that the Board adopt Capacity Fees for Fiscal Year (FY) 2020-21 by applying the valuation approach and facilities life cycles described above, resulting in updated fees as follows: Fee Category Current Proposed % Change Gravity Service $6,589 per RUE $6,803 per RUE 3.2% Pumping Service $8,175 per RUE $8,388 per RUE 2.6% The recommended fee calculation approach is a rational, practical, equitable and defensible method to determine the financial burden of new connections. A breakdown of the proposed Capacity Fees by asset category is presented in Table 1. Table 2 shows a comparison of the proposed Capacity Fees to those fees charged by neighboring agencies. The useful service life assumptions for each asset category are included in Table 3. June 4, 2020 Regular Board Meeting Agenda Packet- Page 44 of 449 CENTRAL CONTRA COSTA SANITARY DISTRICT Report Regarding Capacity Fee Update Table 1-Capacity Fees Calculation-FY 2020-21 (Buy-in to all assets. Values through 06/30/2019) Value per FY 2019- Asset Category Asset Value' RUE 20 Value Change Change ($/RUE) per RUE ($) (%) Land $53,655,999 $313 $307 $6 2.0% Facilities Treatment Plant/Outfall(45%@ 100 yrs+20%@ 75 yrs+35%@ 30 yrs) $375,302,676 $2,188 $2,133 $55 2.6% Recycled Water Facilities(75%@ 50 yrs+25%@ 30 yrs) $20,509,335 $120 $114 $6 5.3% Collection System Trunks and Interceptors(30%@ 150 yrs+70%@ 100 yrs) $335,903,103 $1,959 $1,989 ($30) -1.5% Contributed Mains(100%@ 75 yrs) $658,442,000 not included District Renovated Mains(100%@ 100 yrs) $245,025,412 $1,429 $1,345 $84 6.2% Pumping Stations(45%@ 100 yrs+20%@ 75 yrs+35%@ 30 yrs) $80,353,548 $1,585 3 $1,586 ($1) -0.1% General Improvements(Buildings, Equipment,etc.) $65,138,021 $380 $388 ($8) -2.1% (50%@ 50 yrs+35%@ 25 yrs+15%@ 10 yrs) Major Repairs(100%@ 10 yrs) $12,482,536 $73 $71 $2 2.8% Sewer Construction Fund Balance(net of outstanding debt) $58,414,908 $341 $242 $99 40.9% TOTAL VALUE: $1,905,227,539 Capacity Fee-Gravity Service $1,166,431,991 $6,803 $6,589 $214 3.2% Capacity Fee-Pumped Service $1,246,785,539 $8,388 ° $8,175 $213 2.6% 171,509 Total Residential Unit Equivalents(RUES) 50,682 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 June 4, 2020 Regular Board Meeting Agenda Packet- Page 45 of 449 Page 17 of 35 CENTRAL CONTRA COSTA SANITARY DISTRICT Report Regarding Capacity Fee Update Table 2 — Comparison of Capacity Fees AGENCY CAPACITY FEE Dublin San Ramon Services District $15,533 Mt View Sanitary District $9,691 Proposed CCCSD Pumped Zone $8,388 Current CCCSD Pumped Zone $8,175 West County Wastewater District $8,419 Antioch (Delta Diablo Sanitation District for Treatment) $7,784 Proposed CCCSD Gravity Zone $6,803 Current CCCSD Gravity Zone $6,589 Concord $5,043 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, 2020 June 4, 2020 Regular Board Meeting Agenda Packet- Page 46 of 449 Page 18 of 35 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 June 4, 2020 Regular Board Meeting Agenda Packet- Page 47 of 449 Page 19 of 35 Attachment 3 ORDINANCE NO. 310 AN ORDINANCE OF THE CENTRAL CONTRA COSTA SANITARY DISTRICT ADOPTING AN UNCODIFIED SCHEDULE OF ENVIRONMENTAL AND DEVELOPMENT-RELATED FEES AND CHARGES IN ACCORDANCE WITH DISTRICT CODE CHAPTER 6.30, EFFECTIVE JULY 1 , 2020 WHEREAS, the Board of Directors (Board) of the Central Contra Costa Sanitary District (Central San) finds that Central San incurs substantial costs to provide various environmental and development services, such as, but not limited to, administration and processing of annexations, customer assistance at the permit counter, plan review and inspection for sewer line installation, alteration, replacement and repair, the inclusion of new information on Central San's maps, administration and permit inspection related to the Source Control Program, permitting of septage and grease haulers, and treatment of grease and septage at the treatment plant; and WHEREAS, the Board finds that it is necessary to charge customers and other users of Central San's services to recover the reasonable cost of providing said services; and WHEREAS, Central San staff has comprehensively analyzed the actual cost of providing the various environmental and development services listed above based on direct costs, staff costs and overhead for time and effort incurred to provide listed services; and WHEREAS, the Board finds that the Schedule of Environmental and Development- Related Fees and Charges, as reflected in Exhibit "A" to this Ordinance, reasonably represents the actual costs to provide the services delineated in said Schedule of Fees and Charges; and WHEREAS, the Board 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 and Charges are being charged merely to reimburse Central San for staff costs and expenses. NOW, THEREFORE, the Board of Directors of Central San does hereby ordain as follows: Section 1 (To be uncodified) The Schedule of Environmental and Development-Related Fees and Charges as set forth in full in Exhibit "A" to this Ordinance, which exhibit is hereby incorporated in full herein by this reference, is hereby adopted in uncodified form pursuant to the provisions of District Code Chapter 6.30. As of the effective date of this Ordinance, the fees and charges for each environmental and development service shall be as set forth in said schedule, and shall remain in effect until amended or replaced by ordinance. June 4, 2020 Regular Board Meeting Agenda Packet- Page 48 of 449 Page 20 of 35 Central Contra Costa Sanitary District Ordinance No. 310 Page 2 of 2 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. 307 shall remain in effect and such Fees and Charges due thereunder for any categories of users shall remain due and payable as if those portions of Ordinance No. 307 have 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 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 in the Contra Costa Times and San Ramon Valley Times, newspapers of general circulation, published and circulated within Central San and shall be effective as of July 1, 2020. PASSED AND ADOPTED by the Board of Directors of Central San on the 4th day of June, 2020, by the following vote: AYES: Members: NOES: Members: ABSENT: Members: Michael R. McGill, P.E. 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 June 4, 2020 Regular Board Meeting Agenda Packet- Page 49 of 449 EXHIBIT A CENTRAL CONTRA COSTA SANITARY DISTRICT Page 21 of 35 ENVIRONMENTAL AND DEVELOPMENT-RELATED FEES & CHARGES FOR FISCAL YEAR FY 2020-21 uncodified Fee Category Amount DEVELOPMENT Review of new sewer and recycled water plans and related documents;review of plans for and processing of residential and commercial permit applications;installer reimbursement of sewer construction costs from subsequent connectors; identification of right-of-way conflicts. (A-1) Application Fees: Basic Application (side sewer work, easement staking, permit renewal) $187 Application for new sewer service- new parcel $355 Application for new sewer service-existing parcel $265 Commercial Application (for review of plans for a change in use or expansion of a commercial facility; $370 includes up to one hour of plan review) Commercial Application - Each additional hour $177 Overflow Protection Device Installation (OPD only) no charge Side Sewer Cleanout installation (to facilitate installation of OPD only; permit not upgradable) $25 Capacity Use Charge Program Application Fee $534 Capacity Fee Installment Program and Promissory Note Program Application Fee $534 (A-2) Mainline Extensions: Plan Review: Sewer Service Review (Base fee- up to 12 hours) $4,341 Recycled Water Review (Base fee - up to 8 hours) $3,231 Each additional hour in excess of Base Fee $211 Manhole/ Recycled Water Connection only(design & plan review) $1,382 Right of Way Document Review: Appurtenant Easements (Base fee- 3 hours) $666 Subdivision Map (each) $835 Separate Instrument(Base Fee) $817 Each additional hour $222 (A-3) Private Pumping System Plan Check: Multi-Family/Commercial (outside force main) (Base fee - up to 4 hours) $1,011 Single Family Residential/ADU (Base fee- up to 2 hours) $444 Each additional hour $222 (A-4) Special Approvals $400 (A-5) Annexation Fee (per District Code 6.08.030): New Annexations Actual Expense Annexation Recovery Fee $676 (A-6) Reimbursement Accounts: Set-up fee $1,472 Transaction fee $204 (A-7) Special Studies: Base fee (up to 4 hours plus misc. costs) $790 Each additional hour $172 Source Control Business Review- base fee, includes plan review, site visit and inspection time up to $1,036 four hours Source Control Business Review- each additional hour in excess of base fee $211 Grease Variance Review (includes site visit) $420 Source Control Enforcement Review and Inspection $575 Revised: May 8, 2020 Page 1 June 4, 2020 Regular Board Meeting Agenda Packet- Page 50 of 449 EXHIBIT A CENTRAL CONTRA COSTA SANITARY DISTRICT Page 22 of 35 ENVIRONMENTAL AND DEVELOPMENT-RELATED FEES & CHARGES FOR FY 2020-21 uncodified Fee Category Amount CONSTRUCTION INSPECTION Inspection of new sewer main construction and new sewer and recycled water connections and other related work on private property(includes TV inspection when appropriate). Hours of operation, including premium and holiday schedules, are available at.- www. t.www.centralsan.orglpod/hours-directions (B-1) Mainline Inspection (contributed assets): Base Fee $943 Per Foot Charge (in street) $14.82 Per Foot Charge (in undeveloped land) $10.07 New Manhole, Rodding Inlet $1,148 (B-2) Inspections by type: Overflow Protection Device installation (OPD only) no charge Side Sewer Cleanout installation (to facilitate installation of OPD only) $50 Side Sewer Installation / Repair per 100 feet: $260 Single Inspection Charge (e.g. sewer or recycled water connection; encroachment verification; side sewer cap on property; tap and lateral (new or replacement); air test; reinspection; homeowner $260 reconstruction inspection) Manhole tap; lateral abandonment at main; pipe bursting; trash enclosure w/o trap; side sewer CIPP $520 repair; outdoor grease trap only Manhole Alteration; trash enclosure with trap; grease interceptor abandonment $780 Outside pump installation $1,040 New Manhole or Rodding Inlet (private) $1,040 Grease/Sand /Oil Interceptor $1,560 (B-3) Overtime inspection: First Hour(if responding from off-site) $139 Every hour thereafter $89 Weekend/Holiday-4 hour minimum $406 (B-4) Inspection of non-permitted work (+ avoided charge) $1,170 Revised: May 8, 2020 Page 2 June 4, 2020 Regular Board Meeting Agenda Packet- Page 51 of 449 EXHIBIT A CENTRAL CONTRA COSTA SANITARY DISTRICT Page 23 of 35 ENVIRONMENTAL AND DEVELOPMENT-RELATED FEES & CHARGES FOR FY 2020-21 uncodified Fee Category Application of Fee (B-5) INSPECTION CHARGES FOR NEW CONNECTIONS (Informational Only) The following fees have been in effect since July 1, 2014. This information is to clarify how fees are applied and charged for new connections. This procedure coincides with the 2014 Update to the CCCSD Standard Specifications. Current procedure at the Permit Counter is to collect all connection and inspection fees for new construction when a structure's roof is on and the rough plumbing is installed ("Roof and Rough"). Under the new procedure, a developer can choose to: 1. Connect at Roof and Rough, or 2. Connect at building foundation following the procedures outlined in the 2014 Edition of the Standard Specifications. For either scenario, connection fees will be due and payable prior to permit issuance (consistent with CCCSD Standard Specifications Ed. 2014; Section 3-07 Payment of Fees and Charges.) The changes affect Category(B) Construction Inspection Section (B-2)and are shown below: Residential Connections (up to and including four units) at Roof and Rough: This fee is for inspection of new residential units connecting to CCCSD's mainline after the structure's roof is on and the rough plumbing has been installed. This fee includes: one building connection inspection and one $520 per unit side sewer inspection (up to 100 feet). Additional inspections and related fees may be required. Residential Connections (up to and including four units) at building foundation: This fee is for inspection of new residential units connecting to CCCSD's mainline prior to structure being roofed and rough plumbing being installed. This fee includes: one building connection inspection, one side sewer $1,040 per unit inspection (up to 100 feet), and two additional inspections as required per CCCSD Standard Specifications. Additional inspections and related fees may be required. Commercial/Multiple Residential Connections (more than four units) at Roof and Rough: This fee is for inspection of new commercial or multiple residential units connecting to CCCSD's mainline after structure's roof is on and the rough plumbing has been installed. This fee includes: one building $520 per unit connection inspection and one side sewer inspection (up to 100 feet). Additional inspections and related fees maV be required. Commercial/Multiple Residential Connections (more than four units) at building foundation: This fee is for inspection of new commercial or multiple residential units connecting to CCCSD's mainline prior to structure being roofed and rough plumbing being installed. This fee includes: one $1,300 per unit building connection inspection, one side sewer inspection (up to 100 feet), one pre-construction meeting, and two additional inspections as required per CCCSD Standard Specifications. Additional ins ections and related fees may be re uired. Revised: May 8, 2020 Page 3 June 4, 2020 Regular Board Meeting Agenda Packet- Page 52 of 449 EXHIBIT A CENTRAL CONTRA COSTA SANITARY DISTRICT Page 24 of 35 ENVIRONMENTAL AND DEVELOPMENT-RELATED FEES & CHARGES FOR FY 2020-21 uncodified Fee Category Amount COLLECTION TV inspection of sewers conducted separate from a construction inspection activity; verification of sewer location and sewer service connection. (C-1) TV Inspection: Weekday, hourly rate $301 Minimum Charge (2 hour minimum) $602 Overtime- First Hour $198 Overtime- Each Additional Hour $153 Overtime-Weekend / Holiday(4 hour minimum) $657 (C-2) Dye test $340 (C-3) Collection system repair Actual Expense (C-4) Cancelled TV Inspection without prior notice $561 (C-5) Sewer locating and marking $340 • Establishing right-of-way agreements and resolving conflicts. (D-1) Process Quitclaim Deeds $1,467 Process Quitclaim Deed - plat and legal by others $979 (D-2) Process Real Property Agreement, License, or Easement: Base Fee (minimum charge) $1,581 Each Additional Hour(after 2 hours) $187 (D-3) Right-of-way Research/ Encroachment Resolution Fee Actual Expense (D-4) Right of Entry/ Encroachment Permit Fee Base Fee (minimum charge) $285 Each Additional Hour(after 2 hours) $187 MISCELLANEOUS District services provided for private sewer projects;interest rates for CCCSD programs; copying fees. (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% (E-5) Document/ Plan Copying Fees: 8 1/2" x 11"; 8 1/2"x 14"; 11" x 17" (per sheet) $0.15 24"x 36" Plan (per sheet) $3.00 CCCSD Standard Specifications $20.00 Multiplier to be applied to Alhambra Valley Assessment District(AVAD) 2010-11 Parcel Assessment (E-6) Amount listed in Ordinance 262-Exhibit B to determine AVAD Reimbursement Fee amounts applicable 1.08434 Ito connections in FY 2020-21. Multiplier to be applied to St. Mary's Road Contractual Assessment District(CAD) 2011-1 (E-7) 0.98724 Reimbursement Fees listed in Ordinance 279-Exhibit B. Applicable to connections in FY 2020-21. (E-8) Returned Check/ Insufficient Funds Fee $40 plus bank fees Up to 10% of unpaid (E-9) Delinquent/ Late Payment Fee amount due plus 1.5% per month on unpaid balance Revised: May 8, 2020 Page 4 June 4, 2020 Regular Board Meeting Agenda Packet- Page 53 of 449 EXHIBIT A CENTRAL CONTRA COSTA SANITARY DISTRICT Page 25 of 35 ENVIRONMENTAL AND DEVELOPMENT-RELATED FEES & CHARGES FOR FY 2020-21 uncodified Fee Category Amount (F) INDUSTRIAL PERMIT FEES Permitting and inspection of industries and other commercial dischargers to ensure availability and use of pretreatment processes. (F-1) Class I Fees (Base fee plus cost of District's lab analysis) Actual Expense (F-2) Class II Fees (Base fee plus cost of District's lab analysis) $3,745 (F-3) Class III Fees (Base fee plus cost of District's lab analysis) $0 (F-4) Industrial user permit application fee $0 (F-5) Special discharge permit application fee (*): No on-site inspection, no capacity review $361 On-site inspection $888 Additional charge for capacity review (Required for discharges >50 gpm) $269 DISPOSAL(G) SEPTAGE Sampling and disposal of septic waste and grease. (G-1) Annual permit fee $1,488 (G-2) Residential septic/toilet waste: < 2,000 gallons $40 + $0.15/gal. > 2,000 gallons $80 + $0.15/gal. (G-3) Restaurant grease waste: < 2,000 gallons $40 + $0.03/gal. > 2,000 gallons $80 + $0.03/gal. (*)Additional charges to be billed separately if staff time incurred is above that included in the base fee. (**) Other approved waste will be charged at the residential septic and portable toilet waste rate unless actual strength characteristics are provided. Percent change in septage and restaurant grease fees based on an assumed volume of 2,000 gallons Revised: May 8, 2020 Page 5 June 4, 2020 Regular Board Meeting Agenda Packet- Page 54 of 449 Page 26 of 35 CENTRAL CONTRA COSTA SANITARY DISTRICT Report Regarding Environmental and Development-Related Fees and Charges Update April 7, 2020 OVERVIEW The Central Contra Costa Sanitary District (Central San) Board of Directors will soon consider adopting an ordinance to revise Chapter 6.30, Schedule of Environmental and Development-Related Fees and Charges (Schedule), for various environmental and development services. BACKGROUND Chapter 6.30 of the District Code includes a schedule of fees and charges for environmental and development-related services provided to property owners, contractors, developers, septic and grease waste haulers, and permitted industrial users. These services include: permitting; plan review; inspection of construction for side sewers and main line extensions; addition of new sewer, parcel, and permit information to Central San's maps; source control permits and inspections; and septic and grease hauler sampling and treatment. These fees and charges are intended to recover Central San's labor costs, other operating expenses, and administrative overhead incurred in providing the related services. Central San staff annually reviews the fees and the costs to provide the corresponding services in order to assess whether changes may be appropriate. The most recent update to these fees was on July 1, 2019. California State Law generally requires that fees and charges do not exceed the "reasonable costs" incurred in providing the services for which those fees or charges are levied. For example, following the passage of Proposition 26 in November 2010, language was included in the state Constitution (Article XIII.A, Section 3) requiring that that the cost for any fee or charge "is no more than necessary to cover the reasonable costs of the governmental activity, and that the manner in which those costs are allocated to a payor bear a fair or reasonable relationship to the payor's burdens on, or benefits received from, the governmental activity". FEE COMPONENTS / CALCULATION METHODOLOGY The majority of fees and charges included on the schedule are based on salary and benefit/related overhead costs for staff time & effort. In some cases, additional costs for mileage and other service costs are also included. In a few cases, the fee or charge amount on the schedule represents costs unrelated to labor (e.g. reproduction charges). June 4, 2020 Regular Board Meeting Agenda Packet- Page 55 of 449 Page 27 of 35 Report Regarding Environmental and Development-Related Fees & Charges Page 2 April 7, 2020 In all cases, fees are designed to recover the costs that Central San incurs in providing the related service. As a result, fees are based on averages of projected labor, overhead, mileage, and other costs that are reasonably expected to be incurred. These component costs were primarily determined based on the following methodology: • Direct Labor: Applicable labor rates are determined using current salary rates for each employee classification (grade/step) escalated in conjunction with the terms of existing labor agreements. Where the efforts of multiple staff are required in a transaction, this process is followed for each employee grade level involved. The estimated hourly salary rates are applied to the hourly staff effort required for each transaction type in order to determine the related direct labor cost. (Note that this is a different methodology than that used in prior years, where Step D for each classification was used as the average hourly rate.) • Benefits & Related/Overhead Costs: Employee benefit and related/overhead costs are calculated by applying Central San's Board-approved overhead rate to the total Direct Labor cost as determined above. The Board-approved overhead rate for Fiscal Year (FY) 2020-21 is 189.7%1. • Vehicle & Equipment Costs: The Internal Revenue Service (IRS) periodically issues guidance on standard mileage rates applicable to transportation or travel- related expenses. The applicable rate for calendar year 2020 is $0.575 per mile. Since vehicle depreciation costs are already captured in the overhead rate noted above, this same IRS guidance sets a "Basis Reduction Amount" to reduce this rate by $0.27 per mile in order to avoid over-recovery of these costs. Applying this reduction amount decreases the applicable mileage rate to $0.305 per mile2. o The IRS rates above are applicable to calendar year 2020. For the purpose of calculating the fees in this Schedule, Central San assumes no change for future years (dates after January 1, 2021) for which the IRS has yet to publish guidance. Based on notice publication history, the estimated publication date for 2021 guidance is late 2020. • Other Costs: o Outside Recording/Processing Fees: Certain fees (for example, quitclaim, annexation, property agreements) include a direct pass-through of those fees the District is charged in order to record various documents with related county and other outside offices and agencies. 1 Central San March 5, 2020 Regular Board Meeting Agenda Packet, page 26 of 106. z IRS Notice 2020-05, "2020 Standard Mileage Rates",available at https://www.irs.gov/pub/irs-drop/n-20-05.pdf, page 3 of 5. June 4, 2020 Regular Board Meeting Agenda Packet- Page 56 of 449 Page 28 of 35 Report Regarding Environmental and Development-Related Fees & Charges Page 3 April 7, 2020 o Engineering Support: Some transactions on the Schedule require additional effort to create related entries in the District's GIS or other information systems (e.g. establishing new parcels, revising existing parcel information, etc.) Costs for Engineering Support are applied to applications or other transactions requiring this effort using the methodologies for direct labor and overhead described previously. FEES WITH ALTERNATE COST METHODOLOGIES The rates for some fees do not follow the calculation methodology described above. These rates are: • `No Charge' Fees — Some services are approved at no charge, including: o Application Fee for Installation of an Overflow Protection Device o Inspection of an Overflow Protection Device installation o Industrial User Permit application fee o Industrial User Permit Class III Permit Fee • "Actual Expense" — Some activities are so variable or unique that the cost to complete them cannot be reasonably estimated in advance. Therefore, these fees are stated as based on the "Actual Expense" and are charged based on actual costs incurred after the activity is completed. PROPOSED FEES AND CHARGES For FY 2020-21, staff is recommending various changes to the Schedule, taking into consideration relevant operating costs as described above. A comparison of the current and proposed fees and charges is included as Attachment 1. In summary, for the 85 items included on the FY 2019-20 Schedule, staff recommends increases to 54 items, decreases to 10, and no change to the remaining 21. Staff also recommends adding 2 items, one of which is a new fee and the other is currently referenced in District Code but its inclusion as an item on the Schedule is intended to increase transparency into the application of the fee. Increases Staff recommends increases to 54 of the 85 items on the current Schedule. These increases range from +1.1% to +19.9%, averaging +3.8%. Central San's overhead rate will be decreasing from 203.4% to 189.7% in FY 2020-21. However, despite this decrease, some salary increases (i.e. overtime and other premium salary rates) have a greater effect on base salaries than the decrease in overhead, resulting in an overall increase for fees that are heavily driven by premium labor costs. June 4, 2020 Regular Board Meeting Agenda Packet- Page 57 of 449 Page 29 of 35 Report Regarding Environmental and Development-Related Fees & Charges Page 4 April 7, 2020 Additionally, as a part of the current fee review process, program managers reviewed the cost elements involved in calculating these fees and determined that necessary staffing, levels of effort, or other cost factors required adjustment in order to more accurately recover the costs for certain fees listed on the current Schedule. The most significant increases when compared to the current fee are: • Private Pumping System Plan Check (A-5)(+19.9%): A net increase in effort required for plan review increased Direct Labor costs and associated overhead for this service. • Overtime Inspection (Responding from Off-Site) (+9.4%): Additional travel time was allocated to this item due to distance and local traffic conditions, increasing Direct Labor and Overhead costs. • New Manhole, Rodding Inlet (B-1)(+9.3%): Engineering Support costs were updated to reflect appropriate levels of support for this item, resulting in an increase in Direct Labor and associated overhead costs. Decreases Staff recommends decreases to 10 of the 85 items on the current Schedule. These decreases range from -40.2% to -1.9%, averaging -9.5%. As a part of the current fee review process, program managers reviewed the cost elements involved in calculating these fees and determined that required staffing, levels of effort, or other cost factors required adjustment, resulting in decreases for some items. In other cases, it was determined that some costs were more appropriately recovered by including them in other fees. These adjustments resulted in the following decreases: • "Additional Review" hours under Private Pumping System Plan Check, (A-5)(- 40.2% • Right of Way Document Review, Each Additional Hour (A-1) (-15.9%) • Appurtenant Easement, Base Fee (A-1)(-9.1%) Additions Staff recommends the addition of two fees to the Schedule: • Returned Check/Insufficient Funds Fee (E-8): Checks which are received as payments and then returned by the issuer's bank due to insufficient funds or other reasons require additional staff effort to identify, reconcile, adjust records, contact the issuer, and reprocess the transaction. The proposed fee ($40) is intended to June 4, 2020 Regular Board Meeting Agenda Packet- Page 58 of 449 Page 30 of 35 Report Regarding Environmental and Development-Related Fees & Charges Page 5 April 7, 2020 account for this effort. Staff estimates this fee would be applied approximately 5- 10 times per year. • Delinquent/Late Payment Fee (E-9): This fee is already detailed in District Code (Section 1.08.080), but including it in the Schedule is intended to increase transparency into the application of the fee. Eliminations Staff does not recommend eliminating any fees from the Schedule. Unchanged Staff also recommends leaving 21 of the 85 items on the current schedule unchanged. Seven of these are indicated on the Schedule as fees where "Actual Expenses" are charged. The remainder either have no charge (e.g. Class III permits for industrial users), are nominal amounts normally associated with other billed activities (e.g. $25/$50 for side sewer cleanout), or are fees that are not associated with labor and overhead costs (e.g. per-page printing costs). FINANCIAL IMPACT Staff estimates the proposed rates would result in approximately $56,000 in additional revenue for FY 2020-21. This estimate assumes a decrease of 10% in the level of permits, inspections, and related activities. It should be noted that the fees are set to recover Central San's costs for providing the services. Therefore, the additional estimated revenue will be offset by approximately the same amount of expenses. SUMMARY If the proposed revisions to the Schedule are adopted, 21 items will remain unchanged, 54 will increase, and 10 will decrease. Additionally, 2 new items will be added to allow for more appropriate fee assessments and cost recovery. Attached Supporting Documents: 1. Comparison of Current&Proposed Fees and Charges for FY 2020-21 June 4, 2020 Regular Board Meeting Agenda Packet- Page 59 of 449 ATTACHMENT 1 CENTRAL CONTRA COSTA SANITARY DISTRICT COMPARISON OF CURRENT & PROPOSED FEES & CHARGES FOR FY 2020-21 DRAFT Fee Category Current Fee Proposed Fee % Change DEVELOPMENT Review of new sewer and recycled water plans and related documents;review of plans for and processing of residential and commercial permit applications;installer reimbursement of sewer construction costs from subsequent connectors;identification of right-of-way conflicts. (A-1) Development Review: Mainline Plan Review: Base Fee for Sewer Service Review (minimum charge- includes up to 4 hours of plan review) $4,169 $4,341 4.1% Base Fee for Recycled Water Review(minimum charge- includes up to 4 hours of plan review) $2,975 $3,231 8.6% Each additional hour in excess of Base Fee $198 $211 6.6% Manhole/ Recycled Water Connection only ° (design & plan review) $1,450 $1,382 -4.7/0 Right of Way Document Review: Appurtenant Easements (Base fee - 3 hours) $733 $666 -9.1% Subdivision Map (each) $897 $835 -6.9% Separate Instrument (Base Fee) $844 $817 -3.2% Each additional hour $264 $222 -15.9% (A-2) Application Fees: Basic Application (side sewer work, easement staking, permit renewal) $177 $187 5.6% New parcel - new sewer service $362 $355 -1.9% Existing parcel - new sewer service $253 $265 4.7% Commercial Application (includes up to one hour ° of plan review) $379 $370 -2.4/° Commercial Application -Additional hours: covers review of plans for a change in use or expansion of a $173 $177 2.3% commercial facility, time in excess of one hour Overflow Protection Device Installation (OPD only) no charge no charge no change Side Sewer Cleanout installation (to facilitate installation of OPD only; permit not upgradable) $25 $25 no change Capacity Use Charge Program Application Fee $521 $534 2.5% Capacity Fee Installment Program and ° Promissory Note Program Application Fee $521 $534 2.5/° (A-3) Reimbursement Accounts: Set-up fee $1,444 $1,472 1.9% Transaction fee $200 $204 2.0% (A-4) Special Studies: Base fee (up to 4 hours plus misc. costs) $775 $790 1.9% Each additional hour $169 $172 1.8% Source Control Business Review- base fee, includes plan review, site visit and inspection time up to four $1,010 $1,036 2.6% hours Source Control Business Review-each additional $205 $211 2.9% hour in excess of four hour base fee Grease Variance Review(includes site visit) $411 $420 2.2% Source Control Enforcement Review and Inspection $562 $575 2.3% (A-5) Private pumping system plan check- Commercial $843 $1,011 19.9% Outside Force Main Additional Review $371 $222 -40.2% Private pumping system plan check - Residential $460 $444 -3.5% (A-6) Annexation Fee (per District Code 6.08.030): New Annexations Actual Expense Actual Expense new Annexation Recovery Fee $667 $676 1.3% (A-7) Special Approvals $391 $400 2.3% Revised: April 7, 2020 Page 1 June 4, 2020 Regular Board Meeting Agenda Packet- Page 60 of 449 ATTACHMENT 1 CENTRAL CONTRA COSTA SANITARY DISTRICT COMPARISON OF CURRENT & PROPOSED FEES & CHARGES FOR FY 2020-21 DRAFT CONSTRUCTION INSPECTION Inspection of new sewer main construction and new sewer and recycled water connections and other related work on private property(includes TV inspection when appropriate) (B-1) Mainline Inspection (contributed assets): Base Fee $929 $943 1.5% Per Foot Charge (in street) $14.60 $14.82 1.5% Per Foot Charge (in undeveloped land) $9.92 $10.07 1.5% New Manhole, Rodding Inlet $1,050 $1,148 9.3% (B-2) Inspections by type: Page 32777 Overflow Protection Device installation (OPD only) no charge no charge no change Side Sewer Cleanout installation (to facilitate installation of OPD only) $50 $50 no change Side Sewer Installation/ Repair per 100 feet: $255 $260 2.0% Single Inspection Charge (e.g. sewer or recycled water connection; encroachment verification; side sewer cap on property; tap and lateral (new or $255 $260 2.0% replacement); air test; reinspection; homeowner preconstruction inspection) Manhole tap; lateral abandonment at main; pipe bursting; trash enclosure w/o trap; side sewer CIPP $510 $520 2.0% repair; outdoor grease trap only Manhole Alteration; trash enclosure with trap; $765 $780 2.0% grease interceptor abandonment Outside pump installation $1,020 $1,040 2.0% New Manhole or Rodding Inlet(private) $1,020 $1,040 2.000 Grease/Sand/Oil Interceptor $1,530 $1,560 2.0% (B-3) Overtime inspection: First Hour(if responding from off-site) $127 $139 9.4% Every hour thereafter $84 $89 6.0% Weekend/Holiday(per observed holidays posted at https://www.centralsan.org/pod/hours-directions)- $379 $406 7.1% 4 hour minimum (B-4) Inspection of non-permitted work (+ avoided charge) $1,140 $1,170 2.6% Revised: April 7, 2020 Page 2 June 4, 2020 Regular Board Meeting Agenda Packet- Page 61 of 449 ATTACHMENT 1 CENTRAL CONTRA COSTA SANITARY DISTRICT COMPARISON OF CURRENT & PROPOSED FEES & CHARGES FOR FY 2020-21 DRAFT Fee Category Application of Fee (B-5) INSPECTION CHARGES FOR NEW CONNECTIONS (Informational Only) The following fees have been in effect since July 1, 2014. This information is to clarify how fees are applied and charged for new connections. This procedure coincides with the 2014 Update to the CCCSD Standard Specifications. Current procedure at the Permit Counter is to collect all connection and inspection fees for new construction when a structure's roof is on and the rough plumbing is installed ("Roof and Rough"). Under the new procedure, a developer can choose to: 1. Connect at Roof and Rough, or Page 33 of 3 2. Connect at building foundation following the procedures outlined in the 2014 Edition of the Standard Specifications. For either scenario, connection fees will be due and payable prior to permit issuance (consistent with CCCSD Standard Specifications Ed. 2014; Section 3-07 Payment of Fees and Charges.) The changes affect Category(B) Construction Inspection Section (B-2) and are shown below: Residential Connections (up to and including four units) at Roof and Rough: This fee is for inspection of new residential units connecting to CCCSD's mainline after the structure's roof is on and the rough plumbing has been installed. This fee $510 per unit $520 per unit 2.0% includes: one building connection inspection and one side sewer inspection (up to 100 feet). Additional inspections and related fees may be required. Residential Connections (up to and including four units) at building foundation: This fee is for inspection of new residential units connecting to CCCSD's mainline prior to structure being roofed and rough plumbing being installed. This fee includes: o one building connection inspection, one side sewer $1,020 per unit $1,040 per unit 2.0/ inspection (up to 100 feet), and two additional inspections as required per CCCSD Standard Specifications. Additional inspections and related fees may be required. Commercial/Multiple Residential Connections (more than four units) at Roof and Rough: This fee is for inspection of new commercial or multiple residential units connecting to CCCSD's mainline after structure's roof is on and the rough plumbing $510 per unit $520 per unit 2.0% has been installed. This fee includes: one building connection inspection and one side sewer inspection (up to 100 feet). Additional inspections and related fees may be required. Commercial/Multiple Residential Connections (more than four units) at building foundation: This fee is for inspection of new commercial or multiple residential units connecting to CCCSD's mainline prior to structure being roofed and rough plumbing being installed. This fee includes: one $1,275 per unit $1,300 per unit 2.0% building connection inspection, one side sewer inspection (up to 100 feet), one pre-construction meeting, and two additional inspections as required per CCCSD Standard Specifications. Additional inspections and related fees may be required. Revised: April 7, 2020 Page 3 June 4, 2020 Regular Board Meeting Agenda Packet- Page 62 of 449 ATTACHMENT 1 CENTRAL CONTRA COSTA SANITARY DISTRICT COMPARISON OF CURRENT & PROPOSED FEES & CHARGES FOR FY 2020-21 DRAFT Fee Category Current Fee Proposed Fee % Change COLLECTION TV inspection of sewers conducted separate from a construction inspection activity; verification of sewer location and sewer service connection. (C-1) TV Inspection: Weekday, hourly rate $292 $301 3.1% Minimum Charge (2 hour minimum) $584 $602 3.1% Overtime- First Hour $186 $198 6.5% Overtime - Each Additional Hour $142 $153 Overtime-Weekend / Holiday(4 hour minimum) $612 $657 7.4% (C-2) Dye test $368 $340 -7.6% (C-3) Collection system repair Actual Expense Actual Expense no change (C-4) Cancelled TV Inspection without prior notice $547 $561 2.6% (C-5) Sewer locating and marking $331 $340 2.7% • Establishing right-of-way agreements and resolving conflicts. (D-1) Process Quitclaim Deeds $1,434 $1,467 2.3% Process Quitclaim Deed - plat and legal by others $960 $979 2.0% (D-2) Process Real Property Agreement, License, or Easement: Base Fee (minimum charge) $1,545 $1,581 2.3% Each Additional Hour(after 2 hours) $182 $187 2.7% (D-3) Right-of-way Research / Encroachment Resolution Actual Expense Actual Expense no change (D-4) Right of Entry/ Encroachment Permit Fee Base Fee (minimum charge) $273 $285 4.4% Each Additional Hour(after 2 hours) $182 $187 2.7% MISCELLANEOUS District services provided for private sewer projects;interest rates for CCCSD programs; copying fees. (E-1) Engineering - private sewer projects Actual Expense Actual Expense no change (E-2) Soil evaluation - private sewer projects Actual Expense Actual Expense no change (E-3) Surveying Actual Expense Actual Expense no change (E-4) Minimum annual interest rate for CADs and Capacity 6.00% 6.00% no change Use Program (E-5) Document/ Plan Copying Fees: 8 1/2"x 11"; 8 1/2"x 14"; 11"x 17" (per $0.15 $0.15 no change sheet) 24"x 36" Plan (per sheet) $3.00 $3.00 no change CCCSD Standard Specifications $20.00 $20.00 no change Multiplier to be applied to Alhambra Valley Assessment District(AVAD) 2010-11 Parcel (E-6) Assessment Amount listed in Ordinance 262-Exhibit 1.06032 1.08434 2.3% B to determine AVAD Reimbursement Fee amounts applicable to connections in FY 2020-21. Multiplier to be applied to St. Mary's Road (E-7) Contractual Assessment District(CAD) 2011-1 0.96536 0.98724 2.3% Reimbursement Fees listed in Ordinance 279-Exhibit B. Applicable to connections in FY 2020-21. (E-8) Returned Check/ Insufficient Funds Fee N/A $40 plus new bank fees Up to 10% of unpaid amount (E-9) Delinquent/ Late Payment Fee N/A due plus 1.5% per new month on unpaid balance IF June 4, 2020 Regular Board Meeting Agenda Packet- Page 63 of 449 ATTACHMENT 1 CENTRAL CONTRA COSTA SANITARY DISTRICT COMPARISON OF CURRENT & PROPOSED FEES & CHARGES FOR FY 2020-21 DRAFT Fee Category Current Fee Proposed Fee % Change (F) INDUSTRIAL PERMIT FEES Permitting and inspection of industries and other commercial dischargers to ensure availability and use of pretreatment processes. (F-1) Class I Fees (Base fee plus cost of District's lab Actual Expense Actual Expense no change analysis) Page 35 of 3 (F-2) Class II Fees (Base fee plus cost of District's lab $3,580 $3,745 4.6% analysis) (F-3) Class III Fees (Base fee plus cost of District's lab $0 $0 no change analysis) (F-4) Industrial user permit application fee $0 $0 no change (F-5) Special discharge permit application fee (*): No on-site inspection, no capacity review $344 $361 4.9% On-site inspection $838 $888 6.0% Additional charge for capacity review(Required ° for discharges >50 m)(G) SEPTAGE $266 $269 1.1 /° DISPOSAL Sampling and disposal of septic waste and grease. (G-1) Annual permit fee $1,410 $1,488 5.5% (G-2) Residential septic/toilet waste: < 2,000 gallons $40 + $0.15/gal $40 + $0.15/gal. no change > 2,000 gallons $80 + $0.15/gal $80 + $0.15/gal. no change (G-3) Restaurant grease waste: < 2,000 gallons $40 + $0.03/gal $40 + $0.03/gal. no change > 2,000 gallons $80 + $0.03/gal $80 + $0.03/gal. no change (*)Additional charges to be billed separately if staff time incurred is above that included in the base fee. (**) Other approved waste will be charged at the residential septic and portable toilet waste rate unless actual strength characteristics are provided. Percent change in septage and restaurant grease fees based on an assumed volume of 2,000 gallons Revised: April 7, 2020 Page 5 June 4, 2020 Regular Board Meeting Agenda Packet- Page 64 of 449