HomeMy WebLinkAbout03.e. Reveiw draft PP for Public Hearing 06-06-24 Consider Adopting Uncodified Ordinance amending schedule of capacity feesPage 1 of 17
Item 3.e.
BOARD OF DIRECTORS
POSITION PAPER
MEETING DATE: APRIL 16, 2024
SUBJECT: REVIEW DRAFT POSITION PAPER TO CONDUCTA PUBLIC HEARING ON
JUNE 6, 2024AT2:30 P.M. TO RECEIVE PUBLIC COMMENTAND
CONSIDER ADOPTING UNCODIFIED ORDINANCE NO. AMENDING
THE SCHEDULE OF CAPACITY FEES, RATES AND CHARGES,
REPLACING ORDINANCE NO. 329 IN ACCORDANCE WITH DISTRICT
CODE CHAPTER 6.12
SUBMITTED BY: INITIATING DEPARTMENT:
GEOFF MICHALCZYK, MANAGEMENT
ANALYST
THOMAS BRIGHTBILL, SENIOR ENGINEER
ENGINEERING AND TECHNICAL SERVICES-
PDS-RATES AND FEES
REVIEWED BY: DANEA GEMMELL, PLANNING AND DEVELOPMENT SERVICES DIVISION
MANAGER
GREG NORBY, DEPUTY GENERAL MANAGER - OPERATIONS
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 Capacity Fees.
BACKGROUND
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 Fee is attached:
Current Fee Proposed Fee Percent Change
$8,182 per RUE $8,539 per RUE 4.4 percent
April 16, 2024 Regular FINANCE Committee Meeting Agenda Packet - Page 113 of 150
Page 2 of 17
ALTERNATIVES/CONSIDERATIONS
The Board may decline to adjust the Schedule of Capacity Fees. I n this event, the fees that went into
effect on July 1, 2023 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.
FINANCIAL IMPACTS
If the recommended Capacity Fee is adopted, staff estimates that approximately $210,000 in additional
Capacity Fee revenue would be generated by the increased FY 2024-25 rate, assuming the level of
development remains approximately equal to the current -year projection.
COMMUNITY OUTREACH
Staff will conduct a coordinated outreach program to inform and solicit input from stakeholders and
interested customers regarding the proposed Capacity Fees. Notices of the public hearing will be posted
and published 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, will be 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.
(To be updated for the Board meeting scheduled for June 6, 2024) "As of May 23, 2024, no stakeholders
nor members of the public had contacted Central San with comments. Any comments received after
May 23, 2024 will be presented to the Board of Directors at the public hearing. "
COMMITTEE RECOMMENDATION
The Finance Committee reviewed this matter at its April 16, 2024 meeting and recommended
RECOMMENDED BOARD ACTION
Hold the public hearing. Once the public hearing has been concluded:
Adopt the proposed uncodified Ordinance, revising the " Schedule of Capacity Fees, Rates and Charges"
effective July 1, 2024, 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.
• There is a strong and reasonable relationship between the actual added burden imposed by new
users and the proposed Capacity Fee;
• 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 when needed or required to meet legal and regulatory
requirements;
• 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.
• The proposed fees, rates and charges are exempt from the California Environmental Quality Act
CEQA) per section 6.12.020 of the District Code.
April 16, 2024 Regular FINANCE Committee Meeting Agenda Packet - Page 114 of 150
Page 3 of 17
(Four affirmative votes are required for adoption.)
Strategic Plan re -In
GOAL ONE: Customer and Community
Strategy 2 - Promote initiatives to advance affordable and equitable access to services
ATTACHMENTS:
1. Proposed Ordinance (including Exhibit A)
2. Report Regarding Capacity Fee Update
April 16, 2024 Regular FINANCE Committee Meeting Agenda Packet - Page 115 of 150
P
ATTACHMENT 1 age 4 of 17
ORDINANCE NO.
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 2023-24 Budget," and the Staff Report Regarding the
Capacity Fee Update dated May 1, 2024; 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 6, 2024, 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:
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.
April 16, 2024 Regular FINANCE Committee Meeting Agenda Packet - Page 116 of 150
Page 5 of 17
Ordinance No.
Page 2 of 3
Central Contra Costa Sanitary District
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. 329 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. 329 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.
April 16, 2024 Regular FINANCE Committee Meeting Agenda Packet - Page 117 of 150
Page 6 of 17
Ordinance No.
Page 3 of 3
Central Contra Costa Sanitary District
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, 2024.
PASSED AND ADOPTED this 6th day of June 2024, by the Board of Directors of the
Central Contra Costa Sanitary District by the following vote:
AYES:
Members:
NOES:
Members:
ABSENT:
Members:
Mariah N. Lauritzen
President of the Board of Directors
Central Contra Costa Sanitary District
County of Contra Costa, State of California
COUNTERSIGNED:
Katie Young, CPMC, CMC
Secretary of the District
Central Contra Costa Sanitary District
County of Contra Costa, State of California
Approved as to form:
J. Leah Castella, Esq.
Counsel for the District
April 16, 2024 Regular FINANCE Committee Meeting Agenda Packet - Page 118 of 150
Page 7 of 17
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. adopted June 6, 2024. 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, 2024 in accordance with the provisions of
District Code Chapter 6.12.
Capacity Fee $8,539 per RUE*
*A residential unit equivalent (RUE) is a measure of sewage volume and strength
equivalent to a typical residential household.
Residential Unit Equivalence (RUE) Factors0)
Number of RUE = Unit of Measure Count Multiplied by the RUE Factor
Use
User Group
Unit of
Capacity Fee
Code
Measure(2)
RUE Factor
LU
Single-family residences
Dwelling Unit
1.000
LA
Multiple -family residences, apartments
Dwelling Unit
0.847
LID
Duplex
Dwelling Unit
0.847
LM
Mobile homes
Dwelling Unit
0.847
LT
Condominium
Dwelling Unit
0.847
LS
Accessory structure connected to
Dwelling Unit
0.847
sewer on same parcel with Single-
family residence (not meeting
Accessory Dwelling Unit(3) criteria
LE
Accessory Dwelling Unit(3) — within
Dwelling Unit
0
existing space
LN
Accessory Dwelling Unit(') — new
1,000 square feet
0.425
structure or existing units for which the
(sq. ft.)
District did not previously issue a permit
for an Additional Living Unit or
Accessory Dwelling Unit
LC
Common areas
1,000 sq. ft.
0.200
Page 1 of 5
April 16, 2024 Regular FINANCE Committee Meeting Agenda Packet - Page 119 of 150
Page 8 of 17
Residential Unit Equivalence (RUE) Factors')
Number of RUE = Unit of Measure Count Multiplied by the RUE Factor
Use
Code
User Group
Unit of
Measure(2)
Gravity Capacity
Fee RUE Factor
AB
Auto body / painting
1,000 sq. ft.
0.484
AD
Auto dealerships
1,000 sq. ft.
0.484
AL
Aircraft services
1,000 sq. ft.
0.484
AR
Auto repair / maintenance
1,000 sq. ft.
0.484
AS
Service stations
1,000 sq. ft.
0.484
BT
Trans ortation services
1,000 sq. ft.
0.432
AC
Car washes
1,000 sq. ft.
21.127
AW
Car washes with recycling
1,000 sq. ft.
3.522
BB
Barbers / beauty salons / pet grooming
1,000 sq. ft.
0.725
BC
Dry cleaners, no laundry
1,000 sq. ft.
0.259
BR
Retail sales
1,000 sq. ft.
0.259
BE
Equipment repair / repair services
1,000 sq. ft.
0.228
BK
Contractors / business services
1,000 sq. ft.
0.228
BIN
Nurseries / lumberyards
1,000 sq. ft.
0.228
IL
Light industrial
1,000 sq. ft.
0.228
BH
Meeting halls / studios
1,000 sq. ft.
0.290
EA
Auditoriums / theaters
1,000 sq. ft.
0.290
EC
Cinemas
1,000 sq. ft.
0.290
EM
Entertainment
1,000 sq. ft.
0.290
EB
Bowling alleys
1,000 sq. ft.
0.311
BZ
Miscellaneous commercial
1,000 sq. ft.
0.510
EG
Golf courses / country clubs
1,000 sq. ft.
1.166
EH
Health clubs / spas
1,000 sq. ft.
1.166
ET
Tennis clubs
1,000 sq. ft.
1.166
IW
Warehouses
1,000 sq. ft.
0.136
BM
Markets
1,000 sq. ft.
0.556
BS
Supermarkets
1,000 sq. ft.
0.880
BX
Shopping centers
1,000 sq. ft.
1.057
OB
Business offices
1,000 sq. ft.
0.295
OF
Financial institutions / banks
1,000 sq. ft.
0.295
OG
Government offices
1,000 sq. ft.
0.295
OS
Fraternal / service offices
1,000 sq. ft.
0.295
OM
Medical offices
1,000 sq. ft.
0.637
OV
Veterinary clinics
1,000 sq. ft.
0.637
RD
Delicatessens (or other food service without
Type 1 hood)
1,000 sq. ft.
1.562
RN
Bars
1,000 sq. ft.
1.562
RI
Ice cream parlors
1,000 sq. ft.
1.562
RY
Yogurt shops
1,000 sq. ft.
1.562
Page 2 of 5
April 16, 2024 Regular FINANCE Committee Meeting Agenda Packet - Page 120 of 150
Page 9 of 17
Residential Unit Equivalence (RUE) Factors0)
Number of RUE = Unit of Measure Count Multiplied by the RUE Factor
Use
Gravity Capacity
Code
User Group
Unit of
Fee RUE Factor
Measure(2)
RS
Restaurants or other food service
1,000 sq. ft.
4.010
w/T pe 1 hood dine -in
RT
Restaurants or other food w/Type 1
1,000 sq. ft.
4.010
hood take-out
Patio seating in excess of 300 square
RC
feet, banquet facilities
1,000 sq. ft.
1.166
RB
Bakeries retail
1,000 sq. ft.
4.061
BL
Laundromats
1,000 sq. ft.
13.506
SF
Skilled nursing facilities
1,000 sq. ft.
2.216
Residential care facilities for the elderly
FIE
1,000 sq. ft.
0.932
HP
Hospitals
1,000 sq. ft.
2.891
LH
Hotels / motels
1,000 sq. ft.
1.926
CH
Churches
1,000 sq. ft.
0.242
Schools with cafeteria and gym /
showers
Classroom
0.860
Schools with gym / showers and no
cafeteria
Classroom
0.774
Schools with cafeteria and no gym /
showers
Classroom
0.516
Schools without cafeteria or gym /
showers
Classroom
0.430
(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 for detached units and no more than 50% of the
square footage of the existing primary dwelling for attached units. They contain a full bath, a full or partial
kitchen and meet criteria of Gov't Code Sect 65852.2. A partial kitchen, as described in Government
Code 65852.2 and Health and Safety Code 17958.1 includes a sink outside the bathroom.
Page 3 of 5
April 16, 2024 Regular FINANCE Committee Meeting Agenda Packet - Page 121 of 150
Page 10 of 17
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 gallons per day (gpd)
BODRU
=
200 milligrams per liter m /I
TSSRU
=
215 m /I
A
=
0.69
B
=
0.14
C
=
0.17
Page 4 of 5
April 16, 2024 Regular FINANCE Committee Meeting Agenda Packet - Page 122 of 150
Page 11 of 17
SCHEDULE OF CAPACITY FEES, RATES AND CHARGES — CONTINUED
Non -Residential Capacity Fee Installment Payment Program
Interest Rate — The annual interest rate for calculation of payments under this program
shall be the rate 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.
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 each of the remaining payments charged on the annual property tax bill.
Capacity Use Charge Program
For existing Capacity Use Charge Agreements only:
Capacity Use
Charge Rates
Use Code
User Group
Annual ($/HCF
(Hundred Cubic
Feet
RS
Restaurants (dine -in)
$7.34
RT
Restaurants (paper service / no dishwashers)
$7.34
The annual payment for each agreement signed prior to March 19, 2021 will be
reviewed. If the annual payment would be higher under the 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
April 16, 2024 Regular FINANCE Committee Meeting Agenda Packet - Page 123 of 150
ATTACHMENT 2
Page 12 of 17
CENTRAL CONTRA COSTA SANITARY DISTRICT
Report Regarding the Capacity Fee Update
May 1, 2024
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 occurs 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 $2.3 billion) is much
greater than the value of future facilities expansion needed to accommodate future
customers. While Central San's FY 2022-23 Budget lists $980 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.
Section 66013 of the California Government Code defines Capacity Charges for water
and sewer agencies as a charge for public facilities in existence at the time a charge is
imposed that are of proportional benefit to the person or property being charged. 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 included 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.
April 16, 2024 Regular FINANCE Committee Meeting Agenda Packet - Page 124 of 150
Page 13 of 17
Capacity Fee Update Report
Page 2
May 1, 2024
CALCULATION APPROACH
The Capacity Fee is typically 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.
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. (Note that developer -contributed mains are excluded
from the total asset value to prevent double recovery of the asset value.)
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.
April 16, 2024 Regular FINANCE Committee Meeting Agenda Packet - Page 125 of 150
Page 14 of 17
Capacity Fee Update Report
Page 3
May 1, 2024
Value of Assets
Equity Buy -in Fee = ----------------------------------------
Number of Customers (RUEs)
RECOMMENDED CAPACITY FEE
Staff recommends that the Board adopt Capacity Fees for Fiscal Year (FY) 2024-25 by
applying the valuation approach and facilities life cycles described above, resulting in
updated fee as follows:
Current Proposed % Change
$8,182 per RUE $8,539 per RUE 4.4%
The recommended fee calculation approach is a rational, practical, equitable and
defensible method to determine the financial burden of new connections. A breakdown
of the proposed Capacity Fees by asset category is presented in Table 1. Based on the
review of information in Table 1, the increases are a result of Central San's continued
capital improvement investment in its facilities and the increase in the Sewer
Construction Fund balance. Table 2 shows a comparison of the proposed Capacity
Fees to those fees charged by neighboring agencies. The useful service life
assumptions for each asset category are included in Table 3.
April 16, 2024 Regular FINANCE Committee Meeting Agenda Packet - Page 126 of 150
CENTRAL CONTRA COSTA SANITARY DISTRICT
Report Regarding Capacity Fee Update
Table 1 - Capacity Fee Calculation FY 2024-25
(Equity buy -in. Asset values through 6/30/23)
less
Net Asset
Asset Cateogry
Total Asset
Contributed
Net Asset
Value per
FY 2023-24
Change
Change
1
Value
1
Value
Value per RUE
($)
N
Assets1,2
RUE
Treatment Plant/Outfall
550,001,812
(167,666,662)
382,335,150
2,248
2,262
(14)
-0.6%
Collection System
Trunks and Interceptors
400,436,395
0
400,436,395
2,355
2,250
104
4.6%
Contributed Mains
658,442,000
(658,442,000)
0
0
0
0
District -renovated Mains
326,915,993
0
326,915,993
1,922
1,834
89
4.9%
Pump Stations, Force Mains
110,439,536
0
110,439,536
649
629
20
3.2%
Recycled Water
45,780,476
(21,096,708)
24,683,768
145
184
(39)
-21.2%
General Improvements (no land)
80,080,829
(25,606,234)
54,474,595
320
327
(7)
-2.2%
Major Repairs
9,319,667
(3,999,783)
5,319,884
31
45
(14)
-30.8%
Land
57,397,472
(3,037,073)
54,360,399
320
316
4
1.2%
Sewer Construction Fund Balance
138,054,294
0
138,054,294
812
504
308
61.1%
less Outstanding Debt
(principle only)
(44,935,000)
0
(44,935,000)
(264)
(170)
(94)
55.4%
TOTAL VALUES
2,331,933,475
(879,848,460)
1,452,085,015
Capacity Fee
$8,539
per RUE
Notes:
1. Original cost escalated to current dollars less depreciation except land which is original cost escalated by opportunity cost
2. Contributed Assets include grant -funded, developer dedications, and capital contributions from City of Concord
3. Net asset value divided by total RUES
April 16, 2024 Regular FINANCE Committee Meeting Agenda Packet - Page 127 of 150
Page 16 of 17
CENTRAL CONTRA COSTA SANITARY DISTRICT
Report Regarding Capacity Fee Update
Table 2 — Comparison of Capacity Fees
AGENCY CAPACITY FEE
Dublin San Ramon Services District $17,836
Mt View Sanitary District $11,099
PROPOSED Central San $8,539
Pittsburg (Delta Diablo Sanitation District for Treatment) $8,460
Current Central San $8,182
Pittsburg (Delta Diablo Sanitation District for Treatment) $8,460
Antioch (Delta Diablo Sanitation District for Treatment) $8,000
Pittsburg (Delta Diablo Sanitation District for Treatment) $8,460
Bay Point (Delta Diablo Sanitation District for Treatment) $3,940
Concord $5,330
West County Wastewater District $2,381
Based on publicly available data as of March 28, 2024
April 16, 2024 Regular FINANCE Committee Meeting Agenda Packet - Page 128 of 150
Page 17 of 17
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
April 16, 2024 Regular FINANCE Committee Meeting Agenda Packet - Page 129 of 150