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HomeMy WebLinkAbout05. Conduct public hearing to approve amendments to Exh. A of Ordinance 309 and changes to interest rates Page 1 of 14 Item 5. Algi CENTRAL SAN BOARD OF DIRECTORS WE VS.101 M POSITION PAPER MEETING DATE: MARCH 18, 2021 SUBJECT: CONDUCTA PUBLIC HEARING TO RECEIVE PUBLIC COMMENT ONAND APPROVE PROPOSED AMENDMENTS TO EXHIBITATO ORDINANCE NO. 309,AN UNCODIFIED ORDINANCE INCLUDING THE SCHEDULE OF CAPACITY FEES, RATES AND CHARGES FOR FISCAL YEAR 2020-21, AND TO APPROVE THE INTEREST RATE CHARGED FOR THE NON- RESIDENTIAL CAPACITY FEE INSTALLMENT PAYMENT PROGRAM SUBMITTED BY: INITIATING DEPARTMENT: BRYAN MCGLOIN, MANAGEMENT ANALYST ENGINEERING AND TECHNICAL SERVICES- THOMAS BRIGHTBILL, FINANCIAL PDS-RATES AND FEES PLANNING SENIOR ENGINEER REVIEWED BY: DANEA GEMMELL, PLANNING AND DEVELOPMENT SERVICES DIVISION MANAGER PHILIP LEIBER, DIRECTOR OF FINANCE &ADMINISTRATION JEAN-MARC PETIT, DIRECTOR OF ENGINEERINGAND TECHNICAL SERVICES Roger S. Bailey Kenton L. Alm General Manager District Counsel ISSUE The Board of Directors (Board) is considering changes to the Central San District Code as a separate item on the agenda. If that is approved, then corresponding changes to an existing ordinance are required which also require a public hearing and approval of the Board. March 18, 2021 Regular Board Meeting Agenda Packet- Page 243 of 340 Page 2 of 14 BACKGROUND A proposed change to the existing Capacity Use Charge Program in the Central San District Code would, if approved, require a change to Ordinance No. 309, "Schedule of Capacity Fees, Rates and Charges." In addition, staff is proposing that the interest rate for the new Non-Residential Installment Payment Program (Non-Residential Program) be lowered to better reflect current economic conditions. A marked- up copy of Exhibit A is attached (Attachment 1). Policy Items for Consideration The proposed changes to District Code and to Ordinance No. 309 include several proposed policy changes or items where review and discussion of existing policy may be appropriate. Basis for Interest Rates - Central San currently charges 6% interest for the existing Capacity Use Charge Program and for Contractual Assessment Districts (CADs). The 6% figure is based on Central San's historic use of "the greater of LAI F plus one or 6W where "LAI F" is the interest rate published by the California State Treasurer's Office's Local Agency Investment Fund. Recent discussions have questioned whether 6% is too high based on current economic conditions. In response to these concerns and for the proposed Non-Residential Program, Central San's Director of Finance and Administration has proposed that Central San adopt a lower rate, which would be calculated as follows: 1. A Base Rate consisting of Central San's Borrowing Cost or Opportunity Cost of Funds: If Central San borrowed funds, and a portion of those funds are allocated towards providing loans to customers, that interest rate shall constitute the base rate. Otherwise, the opportunity cost of the funds used for providing loans should be used to establish a base rate. This would be calculated to include the following: • The LAI F rate for the most recent quarter(0.84%), which is the rate that the District earns on invested funds with the County Treasurer in the State's Local Agency Investment Fund. • I n recognition of the yield curve for a loan that can extend for 15 years--a differential consisting of the spread between the 20-year T-Bill and the three-month T-Bill rates, which would account for the full term of the agreement. The differential between these two rates is 1.40%. 2. Ongoing loan administration costs: To cover annual costs of administration, such as placing the charges on the property tax bill each year, answering questions about pay-off amounts, and similar activities, a 0.50% adder would be included in the rate. Using current figures of 0.84% plus 1.40% plus 0.50%, staff proposes a present interest rate of 2.74% to be used for financing loans provided to customers. This would be re-calculated annually and would apply to loans extended during the upcoming year. The advantages of this approach include: • The rate is "cost neutral" and does not provide for a subsidy to specific customers. • The rate is not higher than needed to accomplish cost neutrality. • The rate would be updated annually to ensure the above objectives continue to be met. If this change to interest rates is approved, staff is proposing to review terms and conditions for existing CADs during the regular annual update process for the Schedule of Environmental and Development- Related Fees and Charges. The methodology was approved in February for the Septic to Sewer(S2S) Financing Program. Fixed or Variable Interest Rates - Currently, Central San has several installment payment programs March 18, 2021 Regular Board Meeting Agenda Packet- Page 244 of 340 Page 3 of 14 where the annual charges are collected on the property tax bill. These programs include CADs and Alhambra Valley Assessment Districts (AVADs). Each year, the interest rate for any new CADs or AVADs is set and is published in the Schedule of Environmental and Development-Related Fees and Charges. Once the interest rate is set for a given year, the annual payments remain fixed for each parcel for the life of an agreement signed during that year. The proposed code change states that Capacity Fees under the new Non-Residential Program will be financed "at the interest rate established for the Program in the Schedule of Capacity Fees, Rates, and Charges in effect as of the date the agreement is signed." This proposed approach is consistent with how interest is calculated for CAD and AVAD agreements. A fixed interest rate is proposed for the proposed Non-Residential Program. Alternatively, the interest rate could be a variable rate adjusted annually for each active loan. This would add additional administrative work including performing the additional calculations on each parcel with an active agreement, developing and sending out updated statements for each parcel each year reflecting the changing interest rates and balances, and recalculating the receivable amounts for Central San's financial statements. Terms of Non-Residential Program - Ordinance No. 309, the Schedule of Capacity Fees, Rates and Charges, contains certain rates for the existing Capacity Use Charge Program on the last page of Exhibit A. If the proposed District Code changes are approved, the Capacity Use Charge Program would be eliminated and a new Non-Residential Program would be created. If the code change is approved, the following terms of the new Non-Residential Program would need to be included. These terms include the interest rate for agreements, number of annual payments, and initial payment for the loan. • Interest rate is proposed at 2.74% as previously discussed. • Terms for the loans will extend for 15 years which is consistent for the terms of the existing Capacity Use Charge Program. • Collection of the first payment for one year will occur at the time that the permit is issued. Existing Capacity Use Charge Program Agreements - Central San has 15 active agreements in the program. All of these existing agreements are for restaurants. The terms of the agreements do not allow Central Santo terminate the agreement or to adjust the terms of the agreement. It is assumed that these 15 existing agreements will continue until their end dates or until terminated by the business owner. I n order to accommodate these existing agreements, the annual per-hundred cubic foot (HCF) charges specified by the agreements will need to be updated each year and included on each future Schedule of Capacity Fees, Rates and Charges until all the agreements have been completed. Exhibit A has been modified to remove the terms of all other user groups, except for restaurants. Historically, about half the businesses have higher than average water consumption and therefore, a higher than average annual fee. If the proposed changes to District Code Chapter 6.12 are approved, this item for Board consideration proposes that for each of the existing businesses with an active Capacity Use Charge Program agreement, staff would calculate the payment under both the old and new programs and charge the lower amount for that year. Alternatively, the Board could direct that the benefits of the new Non-Residential Program not be extended to those businesses under an existing Capacity Use Charge Program agreement. ALTERNATIVES/CONSIDERATIONS If the proposed District Code updates are approved, the Board could: 1. Modify Exhibit A to add the draft terms for the new Non-Residential Capacity Fee I nstallment March 18, 2021 Regular Board Meeting Agenda Packet- Page 245 of 340 Page 4 of 14 Payment Program and 2.74% interest rate fixed for the life of the loan, as shown in the attached markup. Exhibit A will remain in effect until such time it is modified by the Board; or 2. Modify Exhibit A to add different terms for the new Non-Residential Capacity Fee Installment Payment Program; or 3. Provide some other direction to staff. FINANCIAL IMPACTS In recent years, Central San has entered into between one and three Capacity Use Charge Program agreements each fiscal year. These agreements have included financing amounts varying between $15,000 and $30,000. Applying a 6% interest rate to a hypothetical average $22,500 agreement financed over 15 years would generate approximately$12,300 in interest over the life of the agreement. Adjusting the interest rate to the proposed 2.74% level for that same agreement would reduce the amount of lifetime interest to approximately$5,300, or a difference of approximately$7,000 per agreement based on current interest rates. As noted above, the interest rate calculated in accordance with the proposed methodology is intended to be cost-neutral to other Central San participants, and would cover lost earnings on the invested funds and administrative costs. COMMITTEE RECOMMENDATION The Finance Committee reviewed this matter on February 23, 2021, and recommended holding the public hearing. RECOMMENDED BOARD ACTION Conduct a public hearing and approve amendments to Ordinance No. 309 as indicated, and approve the interest rate charged for the Non-Residential Capacity Fee Installment Payment Program. Strategic Plan Tie-In GOAL ONE: Customer and Community Strategy 1—Deliver high-quality customer service ATTACHMENTS: 1. Exhibit A to Ordinance 309 Markup 2. Exhibit A to Ordinance 309 Final March 18, 2021 Regular Board Meeting Agenda Packet- Page 246 of 340 Page 5 of 14 ATTACHMENT 1 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 March 18, 2021 Regular Board Meeting Agenda Packet- Page 247 of 340 Page 6 of 14 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 March 18, 2021 Regular Board Meeting Agenda Packet- Page 248 of 340 Page 7 of 14 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 sq. 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 Churches 1,000 sq. ft. 0.242 0.261 Private and Public Schools Use codes SD, SE, SH, SI, SU Schools with cafeteria and qvm /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 March 18, 2021 Regular Board Meeting Agenda Packet- Page 249 of 340 Page 8 of 14 SCHEDULE OF CAPACITY FEES, RATES AND CHARGES — CONTINUED Special Studies The fees for Special Studies shall be as established in the Schedule of Environmental and Development-Related Fees, Rates, and Charges pursuant to the provisions of Chapter 6.30 of the District Code. The following user groups require a special study to determine the appropriate capacity fees. Administrative fees to conduct special studies for these user groups shall be waived. Use Code User Group BP Parking lots CM Cemeteries MO Mortuaries with embalming or cremation facilities EP Parks / playgrounds ES Swimming pools EF Large fitness / athletic clubs LR Residence hotels IE Electronic industries IH Heavy industries IP Permitted industries IR Laboratories / research facilities -- Improvements with garbage disposals -- Public facilities -- Special billings -- Utilities Values for use in the RUE formula in Section 6.12.050(D)(2) shall be: FLORU = 200 gpd BODRU = 200 m /I TSSRU = 215 m /I A = 0.69 B = 0.14 C = 0.17 Page 4 of 5 March 18, 2021 Regular Board Meeting Agenda Packet- Page 250 of 340 Page 9 of 14 SCHEDULE OF CAPACITY FEES, RATES AND CHARGES — CONTINUED Non-residential Capacity Fee Installment Payment Program Interest Rate — Each payment for agreements signed after March 19, 2021, shall include interest calculated at 2.74% annually. Number of Payments — Up to fifteen equal annual payments (one per fiscal year), at the option of the applicant. The first annual payment shall be due at the time the permit is issued with the each of the remaining payments charged on the annual property tax bill. Capacity Use Charge Program For existing Capacity Use Charge Agreements, (entered into, prior to March 19, 2021): The monffimum "initial payment" thFeshold gravity GapaGity fee RUE factor shall be 1.562 RI Kiper ene theusand square feet Capacity Chafge Capacity Use " Charge Rates Pumping tltvityyCapaGity Current Year CapaGity res Fee RUE ($Wenth RUE FaG r €ac#Ar , Use /RI E/1 nnn (RUE/1,000 Annual Code User Group $/HCF���� pp��(�� AG (mar� � 4—.562 . 9 l'YJ $FYt.7 AW Car mfashee with reGyGlin/r 4—.562- 3-.805114.44- 41. Q I aundremats 4-.562 44-m594 $5 Q7• v #R u 2 3.124 $ 39 $3-9ar�+ �+ L44 44 ettel/.N.41 ettell4-.562 4-.92-6 $ 21.2-5 $2.5 RB B lLe ries (retofl) 4362 2-478 �87 RS Restaurants (dine-in) 4-.56-2 2_.T39 $-44��9�+ w$6+.442+ RT Restaurants (paper 1.562 2.738 $ 142. $6.42 service / no dishwashers Skilled nurcinrr faGMiec 4-662 2.347 $ 38.17 The annual payment for each agreement signed prior to March 19, 2021, will be reviewed. If the annual payment would be higher under the new Non-residential Capacity Fee Installment Payment Program, the difference will be waived for the customer. If the annual payment would be lower under the new program, the lower payment will be charged for that year. The anRual interest Fate for Ga!GulatiOR of capaGity use charges shall be as established in the Qnhedule of ERVirenmental and Development_Related Fees and Gharnes pursuant to the Provisions of Chapter 6.30 of the District Code Page 5 of 5 March 18, 2021 Regular Board Meeting Agenda Packet- Page 251 of 340 Page 10 of 14 ATTACHMENT 2 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 March 18, 2021 Regular Board Meeting Agenda Packet- Page 252 of 340 Page 11 of 14 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 March 18, 2021 Regular Board Meeting Agenda Packet- Page 253 of 340 Page 12 of 14 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 sq. 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 Churches 1,000 sq. ft. 0.242 0.261 Private and Public Schools Use codes SD, SE, SH, SI, SU Schools with cafeteria and qvm /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 March 18, 2021 Regular Board Meeting Agenda Packet- Page 254 of 340 Page 13 of 14 SCHEDULE OF CAPACITY FEES, RATES AND CHARGES — CONTINUED Special Studies The fees for Special Studies shall be as established in the Schedule of Environmental and Development-Related Fees, Rates, and Charges pursuant to the provisions of Chapter 6.30 of the District Code. The following user groups require a special study to determine the appropriate capacity fees. Administrative fees to conduct special studies for these user groups shall be waived. Use Code User Group BP Parking lots CM Cemeteries MO Mortuaries with embalming or cremation facilities EP Parks / playgrounds ES Swimming pools EF Large fitness / athletic clubs LR Residence hotels IE Electronic industries IH Heavy industries IP Permitted industries IR Laboratories / research facilities -- Improvements with garbage disposals -- Public facilities -- Special billings -- Utilities Values for use in the RUE formula in Section 6.12.050(D)(2) shall be: FLORU = 200 gpd BODRU = 200 m /I TSSRU = 215 m /I A = 0.69 B = 0.14 C = 0.17 Page 4 of 5 March 18, 2021 Regular Board Meeting Agenda Packet- Page 255 of 340 Page 14 of 14 SCHEDULE OF CAPACITY FEES, RATES AND CHARGES — CONTINUED Non-residential Capacity Fee Installment Payment Program Interest Rate — Each payment for agreements signed after March 19, 2021, shall include interest calculated at 2.74% annually. Number of Payments — Up to fifteen equal annual payments (one per fiscal year), at the option of the applicant. The first annual payment shall be due at the time the permit is issued with the each of the remaining payments charged on the annual property tax bill. Capacity Use Charge Program For existing Capacity Use Charge Agreements, (entered into, prior to March 19, 2021): Capacity Use Charge Rates Use Annual Code User Group ($/HCF) RS Restaurants (dine-in) $6.42 RT Restaurants (paper $6.42 service / no dishwashers) The annual payment for each agreement signed prior to March 19, 2021, will be reviewed. If the annual payment would be higher under the new Non-residential Capacity Fee Installment Payment Program, the difference will be waived for the customer. If the annual payment would be lower under the new program, the lower payment will be charged for that year. Page 5 of 5 March 18, 2021 Regular Board Meeting Agenda Packet- Page 256 of 340 Item 5. (Handout) ORDINANCE NO. 309 ATTACHMENT 3 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. 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. 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 4t" day of June, 2020, by the Board of Directors of the Central Contra Costa Sanitary District by the following vote: AYES: Members: Nejedly, Pilecki, Williams, McGill NOES: Members: Causey ABSENT: Members: None 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: <�or,.4• 616. Kenton L. Alm, Esq. Counsel for the District 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. Gravit 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 SCHEDULE OF CAPACITY FEES, RATES AND CHARGES - CONTINUED Residential Unit Equivalence (RUE) Factors') Number of RUE = Unit of Measure Count Multiplied by the RUE Factor Gravity Pumping Eligible for Capacity Capacity Capacity Use Unit of Fee RUE Fee RUE Use Charge Code User Group Measure(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 2of5 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('), 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 Churches 1 1,000 sq. ft. 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 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 -- S ecial billings -- Utilities Values for use in the RUE formula in Section 6.12.050(D)(2) shall be: FLORU = 200 gpd BODRU = 200 m / I TSSRU = 215 m / I A = 0.69 B = 0.14 C = 0.17 Page 4 of 5 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 Pa ment" Charge Rates Pumping Gravity Capacity Current Year Capacity Fee Fee RUE ($/Month RUE Factor Factor 1,000 Sq. Ft.) Use (RUE/1,000 (RUE/1,000 Annual Code User Group Sq. Ft.) Sq. Ft.) ($/HCF AC Car washes 1.562 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