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HomeMy WebLinkAbout10. Conduct a public hearing to consider adopting an ordinance to amend schedule of environmental and development related fees eff. 07-01-21 Page 1 of 23 Item 10. Algi CENTRAL SAN BOARD OF DIRECTORS WE VS.101 M POSITION PAPER MEETING DATE: JUNE 17, 2021 SUBJECT: CONDUCTA PUBLIC HEARING TO RECEIVE PUBLIC COMMENTAND CONSIDER ADOPTING THE FOLLOWING ORDINANCE TO BECOME EFFECTIVE JULY 1, 2021: • UNCODIFIED ORDINANCE NO. 317 AMENDING THE SCHEDULE OF ENVIRONMENTAL AND DEVELOPMENT-RELATED FEES AND CHARGES, REPLACING ORDINANCE NO. 310 INACCORDANCE WITH DISTRICT CODE CHAPTER 6.30 SUBMITTED BY: INITIATING DEPARTMENT: BRYAN MCGLOIN, MANAGEMENT ANALYST ENGINEERING AND TECHNICAL SERVICES- THOMAS BRIGHTBILL, SENIOR ENGINEER, PDS-RATES AND FEES FINANCIAL PLANNING REVIEWED BY: DANEA GEMMELL, PLANNING AND DEVELOPMENT SERVICES DIVISION MANAGER JEAN-MARC PETIT, DIRECTOR OF ENGINEERING AND TECHNICAL SERVICES Roger S. Bailey General Manager ISSUE State Law and District Code require that a public hearing be held to receive public comment on ordinances which revise the Environmental and Development-Related Fees and Charges. BACKGROUND Chapter 6.30 of the District Code includes provisions for the Board of Directors to adopt an uncodified 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 June 17, 2021 Regular Board Meeting Agenda Packet- Page 67 of 168 Page 2 of 23 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. This schedule also includes an adjustment to the basis for calculating the annual interest rate applied to Central San's various financing agreements, including the new Non-Residential Capacity Fee Installment Payment Plan as well as new agreements in the CAD (Contractual Assessment District) and AVAD (Alhambra Valley Assessment District) programs. The interest rate indicated reflects the revised methodology which uses LAI F (the State of California's Local Agency I nvestment Fund)for the most recent quarter plus the spread between the 20-year and 3-month T-bill rates plus 0.5% for ongoing administration costs. This new basis is intended to address concerns that a de facto 6% minimum interest rate was unreasonably high for financing agreements that are secured by property and for which the collection of payments occurs through annual property tax bills. 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 of Directors, 20 charges would remain unchanged, 19 charges would increase, and 48 charges would decrease with 1 new fee and 2 fees eliminated or combined with others. ALT ERNAT IVES/CONSIDERAT IONS The Board of Directors may decline to adjust some or all of the Environmental and Development-Related Fees and Charges. In this event, the fees that went into effect on July 1, 2020 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 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 a decrease of $70,000 in Permit & Inspection Fee revenue in FY 2021-22. This projection is based on the range of increases shown in the attached staff report and assumes that the level of development would be relatively consistent with that of the current fiscal year due to improving economic conditions. 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 in the Contra Costa Times and San Ramon Valley Times. I n addition, approximately 400 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. June 17, 2021 Regular Board Meeting Agenda Packet- Page 68 of 168 Page 3 of 23 As of June 7, 2021, no stakeholders or members of the public had contacted Central San with comments. Any comments received after June 7, 2021 will be presented to the Board at the public hearing. COMMITTEE RECOMMENDATION The Finance Committee reviewed staff's proposals for revising these fees and charges at its April 27, 2021 meeting and recommended approval. RECOMMENDED BOARD ACTION Hold the public hearing. Once the public hearing has concluded: 1. Adopt the proposed uncodified ordinance, revising the Schedule of Environmental and Development-Related Fees and Charges effective July 1, 2021, 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:Fiscal Responsibility Strategy 1—Maintain financial stability and sustainability, Strategy 2—Ensure integrity and transparency in financial management ATTACHMENTS: 1a. Proposed Environmental and Development-Related Services Fee Ordinance 1 b. Exhibit A to Proposed Environmental and Development-Related Services Fee Ordinance 1c. Environmental and Development-Related Fee Report June 17, 2021 Regular Board Meeting Agenda Packet- Page 69 of 168 Page 4 of 23 ATTACHMENT 1a ORDINANCE NO. 317 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 , 2021 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-related 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-related 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 the Central Contra Costa Sanitary District 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-related service shall be as set forth in said schedule, and shall remain in effect until amended or replaced by ordinance. June 17, 2021 Regular Board Meeting Agenda Packet- Page 70 of 168 Page 5 of 23 Ordinance No. 317 Page 2 of 2 Central Contra Costa Sanitary District 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. 310 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. 310 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, 2021. PASSED AND ADOPTED by the Board of Directors of the Central Contra Costa Sanitary District on the 17th day of June, 2021 by the following vote: AYES: Members: NOES: Members: ABSENT: Members: Tad J. Pilecki 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 17, 2021 Regular Board Meeting Agenda Packet- Page 71 of 168 ATTAildiIMEW 1 b EXHIBIT A CENTRAL CONTRA COSTA SANITARY DISTRICT ENVIRONMENTAL AND DEVELOPMENT-RELATED FEES & CHARGES FOR FISCAL YEAR FY 2021-22 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) $159 Application for new sewer service- new parcel $329 Application for new sewer service-existing parcel $239 Commercial Application (for review of plans for a change in use or expansion of a commercial facility; $397 includes up to one hour of plan review) Commercial Application- Each additional hour $171 Overflow Protection Device Installation (OPD only) no charge Side Sewer Cleanout installation (to facilitate installation of OPD only; permit not upgradable) $25 Non-Residential Capacity Fee Installment Payment Program Application Fee $514 Residential Capacity Fee Installment Program and Promissory Note Program Application Fee $514 (A-2) Mainline Extensions: Plan Review(Sewer Service): Sewer Service Review(Base fee- up to 12 hours) $4,187 Each additional hour $204 Manhole only(design & plan review) $1,347 Plan Review(Recycled Water): Recycled Water Review(Base fee- up to 8 hours) $3,119 Each additional hour $204 Recycled Water Connection only(design &plan review) $1,367 Right of Way Document Review: Appurtenant Easements(Base fee- 3 hours) $638 Subdivision Map (each) $599 Separate Instrument(Base Fee) $768 Each additional hour $213 (A-3) Private Pumping System Plan Check: Single Family Residential/ADU (Base fee-up to 2 hours) $425 Multi-Family/Commercial (outside force main)(Base fee- up to 4 hours) $971 Each additional hour $213 (A-4) Special Approvals $389 (A-5) Annexation Fee (per District Code 6.08.030): New Annexations Actual Expense Annexation Recovery Fee $666 (A-6) Reimbursement Accounts: Set-up fee $1,435 Transaction fee $199 (A-7) Special Studies: Base fee (up to 4 hours plus misc. costs) $878 Each additional hour $180 Revised:A ril 19 2021 Page 1 June 1r,2021 Regular Board Meeting Agenda Packet- Page 72 of 168 Page 7 of 23 EXHIBIT A CENTRAL CONTRA COSTA SANITARY DISTRICT ENVIRONMENTAL AND DEVELOPMENT-RELATED FEES & CHARGES FOR FY 2021-22 uncodified Fee Category Amount DEVELOPMENT(A-8) Source Control Reviews: Source Control Business Review- base fee, includes plan review, site visit and inspection time up to $1,004 four hours Source Control Business Review-each additional hour in excess of base fee $204 Grease Variance Review(includes site visit) $433 Source Control Enforcement Review and Inspection $556 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.centralsan.org/pod/hours-directions (B-1) Inspections by type: Mainline base fee $962 Mainline per foot(includes in-line manholes or structures) $15.12 New Manhole or structure(e.g. recycled water meter) $1,088 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: $253 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 $253 reconstruction inspection) Manhole tap; lateral abandonment at main; pipe bursting; trash enclosure w/o trap; side sewer CIPP $506 repair; outdoor grease trap only Manhole Alteration; trash enclosure with trap; grease interceptor abandonment $759 Outside pump installation $1,012 Grease/Sand/Oil Interceptor $1,518 (B-2) Overtime inspection: First Hour(if responding from off-site) $140 Weekend/Holiday-4 hour minimum $413 Every hour thereafter $91 (B-3) Inspection of non-permitted work(+avoided charge) $1,143 Revised:A ril 19 2021 Page 2 June 1r,2021 Regular Board Meeting Agenda Packet- Page 73 of 168 Page 8 of 23 EXHIBIT A CENTRAL CONTRA COSTA SANITARY DISTRICT ENVIRONMENTAL AND DEVELOPMENT-RELATED FEES & CHARGES FOR FY 2021-22 uncodified Fee Category Application of Fee (B-4) INSPECTION CHARGES FOR NEW CONNECTIONS (Informational Only) 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 Standard Specifications. For either scenario, connection fees will be due and payable prior to permit issuance(consistent with District Code). The changes affect Category(B)Construction Inspection as 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 $506 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 $1,012 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 $506 per unit 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 $1,265 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:A ril 19 2021 Page 3 June 1r,2021 Regular Board Meeting Agenda Packet- Page 74 of 168 Page 9 of 23 EXHIBIT A CENTRAL CONTRA COSTA SANITARY DISTRICT ENVIRONMENTAL AND DEVELOPMENT-RELATED FEES & CHARGES FOR FY 2021-22 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 $289 Minimum Charge (2 hour minimum) $578 Overtime- First Hour $198 Overtime- Each Additional Hour $154 Overtime-Weekend/Holiday(4 hour minimum) $660 (C-2) Dye test $328 (C-3) Collection system repair Actual Expense (C-4) Cancelled TV Inspection without prior notice $542 (C-5) Sewer locating and marking $328 • Establishing right-of-way agreements and resolving conflicts. (D-1) Process Quitclaim Deeds $1,277 Process Quitclaim Deed -plat and legal by others $814 (D-2) Process Real Property Agreement, License, or Easement: Base Fee- Up to 4 hours (minimum charge) $1,264 Each Additional Hour $174 (D-3) Right-of-way Research/Encroachment Resolution Fee Actual Expense (D-4) Right of Entry/Encroachment Permit Fee Base Fee- Up to 2 hours (minimum charge) $467 Each Additional Hour $174 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) Annual interest rate for CADs and Septic to Sewer Financing Programs 3.22% Multiplier to be applied to Alhambra Valley Assessment District(AVAD) 2010-11 Parcel Assessment (E-5) Amount listed in Ordinance 262-Exhibit B to determine AVAD Reimbursement Fee amounts applicable 1.10531 to connections in FY 2021-22. (E-6) Multiplier to be applied to St. Mary's Road Contractual Assessment District(CAD) 2011-1 1.00633 Reimbursement Fees listed in Ordinance 279-Exhibit B. Applicable to connections in FY 2021-22. (E-7) Returned Check/Insufficient Funds Fee $40 plus bank fees Up to 10%of unpaid (E-8) Delinquent/Late Payment Fee amount due plus 1.5% per month on unpaid balance (E-9) Document/Plan Copying Fees: 8 1/2"x 11"; 8 1/2"x 14"; 11"x 17" (per sheet) $0.20 24"x 36" Plan (per sheet) $4.00 CCCSD Standard Specifications $25.00 CCCSD Standard Specifications (Pocket Guide) $5.00 Revised:A ril 19 2021 Page 4 June 1r,2021 Regular Board Meeting Agenda Packet- Page 75 of 168 Page 10 of 23 EXHIBIT A CENTRAL CONTRA COSTA SANITARY DISTRICT ENVIRONMENTAL AND DEVELOPMENT-RELATED FEES & CHARGES FOR FY 2021-22 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 11 Fees(Base fee plus cost of District's lab analysis) $3,852 (F-3) Class III Fees (Base fee plus cost of District's lab analysis) no charge (F-4) Industrial user permit application fee no charge (F-5) Special discharge permit application fee ( ): No on-site inspection, no capacity review $357 On-site inspection $898 Additional charge for capacity review(Required for discharges >50 gpm) $260 (G) SEPTAGE • • Sampling and disposal of septic waste and grease. (G-1) Annual permit fee $1,473 (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:A ril 19 2021 Page 5 June 1r,2021 Regular Board Meeting Agenda Packet- Page 76 of 168 Page 11 of 23 ATTACHMENT 1c CENTRAL CONTRA COSTA SANITARY DISTRICT Report Regarding Environmental and Development-Related Fees and Charges Update April 19, 2021 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 and related systems; 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, administrative overhead, and other operating expenses incurred in providing the related services. Central San staff annually reviews the costs required to provide the corresponding services in order to assess whether changes to the Schedule may be appropriate. The most recent annual update to these fees was effective July 1, 2020. 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 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/STANDARD 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 17, 2021 Regular Board Meeting Agenda Packet- Page 77 of 168 Page 12 of 23 Report Regarding Environmental and Development-Related Fees & Charges Page 2 April 19, 2021 In all cases, fees are designed to recover the costs that Central San incurs in providing the related service during the fiscal year (FY). 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 methodologies: • 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. o Current labor agreements include an allowance for annual cost of living adjustments based on Consumer Price Index (CPI)/inflation rates for the San Francisco area as determined by the U.S. Department of Labor's Bureau of Labor Statistics. Current agreements incorporate the CPI rate determined for each February. Based on publication history these rates are available in mid-March of each year. Because salary costs for a portion of FY 2021-22 are dependent on rates which will not be available until at least March of 2022, this portion of costs is estimated based on projected trends. • Benefits & Related/Overhead Costs: Employee benefit and related/overhead costs for each transaction type are calculated by applying Central San's Board-approved overhead rate to the total Direct Labor cost for that transaction as determined above. The Board-approved overhead rate for FY 2021-22 is 177%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 2021 is $0.56 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 $0.26 per mile in order to avoid over-recovery of these costs. Applying this reduction amount decreases the applicable mileage rate to $0.30 per mile2. o The IRS rates above are applicable to calendar year 2021. 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 publication history, the estimated publication date for 2022 guidance is late 2021. 1 Central San February 4, 2021 Regular Board Meeting,Agenda Item 4. Z IRS Notice 2021-02, "2021 Standard Mileage Rates", available at https://www.irs.gov/pub/irs-drop/n-21-02.pdf, page 2 of 5. June 17, 2021 Regular Board Meeting Agenda Packet- Page 78 of 168 Page 13 of 23 Report Regarding Environmental and Development-Related Fees & Charges Page 3 April 19, 2021 • Other Costs: o Outside Recording/Processing Fees: Certain fees (for example, quitclaim, annexation, property agreements) include a direct pass-through of any fees the District is charged in order to record various documents with related county and other outside offices and agencies. 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 ALTERNATIVE COST METHODOLOGIES The rates for some fees do not follow the calculation methodology described above. These alternative methodologies include the following: • "Actual Expense" — Some activities are so variable or unique that a standardized cost estimate cannot be reasonably determined in advance. Therefore, the fees for these activities are stated as "Actual Expense" since they are based on the actual costs incurred to complete the activity and can differ from project to project. • "No Charge" — Consistent with previous Board direction, some services are provided 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 PROPOSED FEES AND CHARGES For FY 2021-22, staff is recommending various adjustments to the Schedule in order to account for changes in business processes and related operating costs as described above. A comparison of the current and proposed fees and charges is included as Attachment 1. The FY 2020-21 schedule includes 87 items. Administrative adjustments due to reorganization and splitting/combining of some items results in a total of 89 fees to review for the FY 2021-22 schedule. For the 89 fees reviewed, staff recommends increases to 19 items, decreases to 48, elimination of 2 fees and no change to the remaining 20. Staff is also recommending 1 additional fee. The median adjustment is -2.8%. June 17, 2021 Regular Board Meeting Agenda Packet- Page 79 of 168 Page 14 of 23 Report Regarding Environmental and Development-Related Fees & Charges Page 4 April 19, 2021 Increases Staff recommends increases to 19 of the 89 schedule items. These increases range from +0.5% to +63.9%, with a median increase of +2.9%. Although several of these proposed changes are significant in percentage terms, in many cases the associated dollar amounts are minimal. For example, staff are proposing an increase to the copying fee for standard size paper from $0.15 to $0.20 per page and this $0.05 increase represents a 33.3% increase for this fee. Central San's overhead rate will be decreasing from 190% to 177% in FY 2021-22. Despite this decrease, some salary increases (in particular, those for overtime and other premium salary rates) have a greater upward effect than the decrease in overhead, resulting in an overall increase for fees that are heavily driven by premium labor costs. Additionally, some labor costs are increased when compared to the prior year because Central San employees in the related job classifications are projected to achieve a step increase during the fiscal year. Finally, as a part of the current fee review process, managers reviewed the cost elements involved in calculating these fees and determined that necessary staffing, levels of effort, or other cost factors required adjustments to more accurately recover the costs for certain fees listed on the current Schedule. Above average increases when compared to the current year fee are: • Right of Entry/Encroachment Permit Fee (D-4) (+63.9%): This increase is due to the addition of more labor time and associated overhead related to Senior Engineer (S83) effort. • Document/Plan Copying Fees (E-9) (+25.0% and +33.3%): Various fees associated with reprographics are projected to increase as follows: photocopies from $0.15 to $0.20 (standard sizes) and $3.00 to $4.00 (24" x 36") per page (+33.3%). In addition, the fee for a hard copy of Central San's Standard Specifications would increase from $20 to $25 (+25.0%). • Special Studies (A-7) (+11.1%): This increase is due to the reassignment of a portion of this activity from an Engineering Assistant III (G69) to a Management Analyst (S72), resulting in an increase in Direct Labor and related Overhead costs. Decreases Staff recommends decreases to 48 of the 89 items on the current Schedule. These decreases range from -46.3% to -1.0%, with a median of-3.5%. The most significant of these decreases (in percentage) is the decrease in the interest rate charged for participants in Central San's financing programs. June 17, 2021 Regular Board Meeting Agenda Packet- Page 80 of 168 Page 15 of 23 Report Regarding Environmental and Development-Related Fees & Charges Page 5 April 19, 2021 The primary factor related to these decreases is the previously referenced decrease in Central San's overhead rate, which was sufficient in many cases to more than offset any salary increases due to step and cost of living adjustments. Additionally, some labor costs are decreased when positions are vacated and refilled at lower, new hire salary levels. Finally, as a part of the current fee review process, managers reviewed the cost elements involved in calculating these fees and determined that required staffing, levels of effort, or other cost factors required adjustments, resulting in decreases for some items. These adjustments resulted in the following above average decreases: • Basic Application, Application for New Sewer Service (A-1) (-15.0%, -7.3%, -9.8%) • Right of Way Document Review, Subdivision Map (A-2) (-28.3%) • Various Right-of-Way fees (D-1 through D-4) (-7.0% to -201%) • Interest Rate for CADs and additional Financing Programs (E-4)(46.3%) Additions Staff recommends the addition of one fee to the Schedule: • CCCSD Standard Specifications (Pocket Guide) (E-9): This guide was developed following the recent updates to the Standard Specifications and is being offered for purchase in addition to the traditional Standard Specifications reference guide which also remains available. Eliminations Staff recommends eliminating 2 fees from the Schedule because they are more appropriately incorporated into other fees already listed on the Schedule. These items are: Mainline Inspection per foot charge in undeveloped land (proposed combination with inspections in developed areas) and Inspection of New Manhole or Rodding Inlet (proposed combination with "New Manhole or Structure"). Unchanged Staff also recommends leaving 20 of the 89 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) or are nominal amounts normally associated with other billed activities (e.g. $25/$50 for side sewer cleanout). June 17, 2021 Regular Board Meeting Agenda Packet- Page 81 of 168 Page 16 of 23 Report Regarding Environmental and Development-Related Fees & Charges Page 6 April 19, 2021 FINANCIAL IMPACT The fees and charges on this schedule are intended to recover Central San's labor costs, administrative overhead, and other operating expenses incurred in providing the related services. The FY 2021-22 District budget projects approximately $1.9 million in Permit & Inspection Fee revenues, representing a $70,000 (3.6%) decrease compared to the FY 2020-21 budget. This decrease is the result of a combination of individual fee reductions and some anticipated development increases due to improving economic conditions. SUMMARY If the proposed revisions to the Schedule are adopted, 20 items will remain unchanged, 19 will increase, and 48 will decrease. Additionally, 2 items will be eliminated/combined with others and 1 new item will be added to allow for more appropriate fee assessment and cost recovery. Attached Supporting Document: 1. Comparison of Current&Proposed Fees and Charges for FY 2021-22 June 17, 2021 Regular Board Meeting Agenda Packet- Page 82 of 168 Page 17 of 23 ATTACHMENT 1 CENTRAL CONTRA COSTA SANITARY DISTRICT COMPARISON OF CURRENT & PROPOSED FEES & CHARGES FOR FY 2021-22 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) Application Fees: Basic Application (side sewer work, easement staking, permit renewal) $187 $159 -15.0% Application for new sewer service- new parcel $355 $329 -7.3% Application for new sewer service-existing parcel $265 $239 -9.8% Commercial Application (for review of plans for a change in use or expansion of a commercial facility; $370 $397 7.3% includes up to one hour of plan review) Commercial Application - Each additional hour $177 $171 -3.4% 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 Non-Residential Capacity Use Charge Capacity ° Fee Installment Payment Program Application Fee $534 $514 -3.7/o Residential Capacity Fee Installment Program and $534 $514 -3.7% Promissory Note Program Application Fee (A-2) Mainline Extensions: Plan Review (Sewer Service): Sewer Service Review (Base fee - up to 12 hours) $4,341 $4,187 -3.5% Each additional hour $211 $204 -3.3% Manhole only (design & plan review) $1,382 $1,347 -2.5% Plan Review (Recycled Water): Recycled Water Review(Base fee- up to 8 hours) $3,231 $3,119 -3.5% Each additional hour $211 $204 -3.3% Recycled Water Connection only (design & plan ° review) $1,382 $1,367 -1.1 /° Right of Way Document Review: Appurtenant Easements (Base fee - 3 hours) $666 $638 -4.2% Subdivision Map (each) $835 $599 -28.3% Separate Instrument (Base Fee) $817 $768 -6.0% Each additional hour $222 $213 -4.1% Revised:April 19, 2021 Page 1 June 17, 2021 Regular Board Meeting Agenda Packet- Page 83 of 168 Page 18 of 23 ATTACHMENT 1 CENTRAL CONTRA COSTA SANITARY DISTRICT COMPARISON OF CURRENT & PROPOSED FEES & CHARGES FOR FY 2021-22 DRAFT Fee Category Current Fee Proposed Fee IF% Change (A-3) Private Pumping System Plan Check: Single Family Residential/ADU (Base fee - up to 2 $444 $425 -4.3% hours Multi-Family/Commercial (outside force main) $1,011 $971 -4.0% Base fee- up to 4 hours Each additional hour $222 $213 -4.1% (A-4) Special Approvals $400 $389 -2.8% (A-5) Annexation Fee (per District Code 6.08.030): New Annexations Actual Expense Actual Expense no change Annexation Recovery Fee $676 $666 -1.5% (A-6) Reimbursement Accounts: Set-up fee $1,472 $1,435 -2.5% Transaction fee $204 $199 -2.5% (A-7) Special Studies: Base fee (up to 4 hours plus misc. costs) $790 $878 11.1% Each additional hour $172 $180 4.7% (A-8) Source Control Reviews: Source Control Business Review- base fee, includes plan review, site visit and inspection time $1,036 $1,004 -3.1% up to four hours Source Control Business Review- each additional $211 $204 -3.3% hour in excess of base fee Grease Variance Review(includes site visit) $420 $433 3.1% Source Control Enforcement Review and $575 $556 -3.3% Inspection Revised:April 19, 2021 Page 2 June 17, 2021 Regular Board Meeting Agenda Packet- Page 84 of 168 Page 19 of 23 ATTACHMENT 1 CENTRAL CONTRA COSTA SANITARY DISTRICT COMPARISON OF CURRENT & PROPOSED FEES & CHARGES FOR FY 2021-22 DRAFT Fee Category Current Fee Proposed Fee % Change 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.orp/pod/hours-directions (B-1) Inspections by type: Mainline base fee $943 $962 2.0% Mainline per foot (includes in-line manholes or $14.827 $15.12 2.0% structures) undeveloped Dor Cont Charge (on lan ) $40-.G7 #N/A #N/A New Manhole or structure (e.g. recycled water ° meter) $1,148 $1,088 -5.2/° Overflow Protection Device installation (OPD only) no charge no charge no change Side Sewer Cleanout installation (to facilitate installation of OPD onl $50 $50 no change Side Sewer Installation / Repair per 100 feet: $260 $253 -2.7% Single Inspection Charge (e.g. sewer or recycled water connection; encroachment verification; side sewer cap on property; tap and lateral (new or $260 $253 -2.7% replacement); air test; reinspection; homeowner preconstruction inspection) Manhole tap; lateral abandonment at main; pipe bursting; trash enclosure w/o trap; side sewer CIPP $520 $506 -2.7% repair; outdoor grease trap only Manhole Alteration; trash enclosure with trap; $780 $759 -2.7% grease interceptor abandonment Outside pump installation $1,040 $1,012 -2.7% New MaRh„le „r Redding info+ (private) $4-,g4g #N/A #N/A Grease/Sand /Oil Interceptor $1,560 $1,518 -2.7% (B-2) Overtime inspection: First Hour(if responding from off-site) $139 $140 0.7% Weekend/Holiday-4 hour minimum $406 $413 1.7% Every hour thereafter $84 $91 8.3% (B-3) Inspection of non-permitted work(+ avoided charge) $1,170 $1,143 -2.3% Revised:April 19, 2021 Page 3 June 17, 2021 Regular Board Meeting Agenda Packet- Page 85 of 168 Page 20 of 23 ATTACHMENT 1 CENTRAL CONTRA COSTA SANITARY DISTRICT COMPARISON OF CURRENT & PROPOSED FEES & CHARGES FOR FY 2021-22 DRAFT Fee Category Application of Fee (B-4) INSPECTION CHARGES FOR NEW CONNECTIONS (Informational Only) 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 Standard Specifications. For either scenario, connection fees will be due and payable prior to permit issuance(consistent with District Code). The changes affect Category (B) Construction Inspection as 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 $520 per unit $506 per unit -2.7% the rough plumbing 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. 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 $1,040 per unit $1,012 per unit -2.7/ 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 $520 per unit $506 per unit -2.7% 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 $1,300 per unit $1,265 per unit -2.7% 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 Revised iris r�q"oand related fees may be required. Page 4 June 17, 2021 Regular Board Meeting Agenda Packet- Page 86 of 168 Page 21 of 23 ATTACHMENT 1 CENTRAL CONTRA COSTA SANITARY DISTRICT COMPARISON OF CURRENT & PROPOSED FEES & CHARGES FOR FY 2021-22 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 $301 $289 -4.0% Minimum Charge (2 hour minimum) $602 $578 -4.0% Overtime - First Hour $198 $198 0.0% Overtime - Each Additional Hour $153 $154 0.7% Overtime -Weekend / Holiday(4 hour minimum) $657 $660 0.5% (C-2) Dye test $340 $328 -3.5% (C-3) Collection system repair Actual Expense Actual Expense no change (C-4) Cancelled TV Inspection without prior notice $561 $542 -3.4% (C-5) Sewer locating and marking $340 $328 -3.5% • Establishing right-of-way agreements and resolving conflicts. (D-1) Process Quitclaim Deeds $1,467 $1,277 -13.0% Process Quitclaim Deed - plat and legal by others $979 $814 -16.9% (D-2) Process Real Property Agreement, License, or Easement: Base Fee- Up to 4 hours (minimum charge) $1,581 $1,264 -20.1% Each Additional Hour $187 $174 -7.0% (D-3) Right-of-way Research / Encroachment Resolution Actual Expense Actual Expense no change (D-4) Right of Entry/ Encroachment Permit Fee Base Fee- Up to 2 hours (minimum charge) $285 $467 63.9% Each Additional Hour $187 $174 -7.0% Revised:April 19, 2021 Page 5 June 17, 2021 Regular Board Meeting Agenda Packet- Page 87 of 168 Page 22 of 23 ATTACHMENT 1 CENTRAL CONTRA COSTA SANITARY DISTRICT COMPARISON OF CURRENT & PROPOSED FEES & CHARGES FOR FY 2021-22 DRAFT Fee Category Current Fee Proposed Fee % Change 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 AA+ni m Annual interest rate for CADs and Septic to 0 0 0 (E-4) Sewer rapacity Use Program Financing Programs 6.00/0 3.22/o -46.3/o Multiplier to be applied to Alhambra Valley Assessment District(AVAD) 2010-11 Parcel (E-5) Assessment Amount listed in Ordinance 262-Exhibit 1.08434 1.10531 1.9% B to determine AVAD Reimbursement Fee amounts applicable to connections in FY 2021-22. Multiplier to be applied to St. Mary's Road (E-6) Contractual Assessment District(CAD) 2011-1 0.98724 1.00633 1.9% Reimbursement Fees listed in Ordinance 279-Exhibit B. Applicable to connections in FY 2021-22. (E-7) Returned Check/ Insufficient Funds Fee $40 plus $40 plus no change bank fees bank fees Up to 10% of Up to 10% of unpaid amount unpaid amount (E-8) Delinquent/ Late Payment Fee due plus 1.5% per due plus 1.5% per no change month on unpaid month on unpaid balance balance (E-9) Document/ Plan Copying Fees: 8 1/2"x 11"; 8 1/2"x 14"; 11"x 17" (per sheet) $0.15 $0.20 33.3% 24"x 36" Plan (per sheet) $3.00 $4.00 33.3% CCCSD Standard Specifications $20.00 $25.00 25.0% CCCSD Standard Specifications (Pocket Guide) N/A $5.00 new Revised:April 19, 2021 Page 6 June 17, 2021 Regular Board Meeting Agenda Packet- Page 88 of 168 Page 23 of 23 ATTACHMENT 1 CENTRAL CONTRA COSTA SANITARY DISTRICT COMPARISON OF CURRENT & PROPOSED FEES & CHARGES FOR FY 2021-22 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) (F-2) Class 11 Fees (Base fee plus cost of District's lab $3,745 $3,852 2.9% analysis) (F-3) Class III Fees (Base fee plus cost of District's lab no charge no charge no change analysis) --jr (F-4) Industrial user permit application fee no charge no charge no change (F-5) Special discharge permit application fee (*): No on-site inspection, no capacity review $361 $357 -1.1% On-site inspection $888 $898 1.1% LAdditional charge for capacity review (Required ° for dischar es >50 m $269 $260 -3.3% (G) SEPTAGE DISPOSAL(") Sampling and disposal of septic waste and grease. (G-1) Annual permit fee $1,488 $1,473 II -1.0% (G-2) Residential septic/toilet waste: < 2,000 gallons $40 + $0.15/gal $40 + $0.15/ga1. no change > 2,000 gallons $80 + $0.15/gal $80 + $0.15/ga1. 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 19, 2021 Page 7 June 17, 2021 Regular Board Meeting Agenda Packet- Page 89 of 168