HomeMy WebLinkAbout10.(Handout 2) Revised Staff ReportATTACHMENT 2
CENTRAL CONTRA COSTA SANITARY DISTRICT
Report Regarding Environmental and Development -Related
Fees and Charges Update
June 6, 2024
OVERVIEW
The Central Contra Costa Sanitary District (Central San) Board of Directors will soon
consider adopting an ordinance to revise Central San District Code 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.
The fees and charges included on the Schedule are intended to recover Central San's
labor costs, administrative overhead, and other operating expenses incurred in providing
the related services. The extent to which these fees and charges can be adjusted is
limited by California State Law which 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."
Central San staff reviews the costs required to provide the corresponding services on a
regular basis in order to assess whether changes to the Schedule may be appropriate.
The most recent update to these fees was approved by the Board on June 1, 2023 with
an effective date of July 1, 2023.
FEE COMPONENTS/STANDARD CALCULATION METHODOLOGY
The majority of fees and charges included on the Schedule are based on salary and
related benefit and overhead costs for staff time and effort. In some cases, additional
Report Regarding Environmental and Development -Related Fees and Charges
Page 2
June 6, 2024
costs for mileage and other service costs are also included. In a few cases, the fee or
charge represents costs unrelated to labor (e.g., reproduction charges). 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 are primarily based on the following methodologies:
Direct Labor: Applicable labor rates for FY 2024-25 are determined using a
weighted average of projected hourly labor rates effective April 18, 2024 and
projected hourly labor rates effective April 18, 2025. Because labor rates for a
portion of FY 2024-25 are dependent on rates which not be available until at least
March of 2025, this portion of costs is estimated based on future assumptions.
Labor rates are assumed to increase 3.75% each April 18. Step D for each labor
grade is used in calculations.
• Benefits & Related/Overhead Costs: Employee benefit and related overhead costs
for each transaction type are calculated by applying Central San's Board -approved
administrative overhead rate to the total Direct Labor cost for that transaction as
determined above. The Board -approved overhead rate for FY 2024-25 is 163%1,
down from 164% during FY 2023-24.
Vehicle & Equipment Costs: The U.S. Internal Revenue Service (IRS) periodically
issues guidance on standard mileage rates applicable to transportation or travel -
related expenses. The applicable rate for calendar year 2024 is $0.67 per mile.
Since vehicle depreciation costs are already captured in Central San's
administrative overhead rate noted above, this same IRS guidance sets a "Basis
Reduction Amount" to reduce this rate by $0.30 per mile in order to prevent over -
recovery of these costs. Applying this reduction decreases the applicable mileage
rate to $0.370 per mile 2, down from $0.395 per mile in the previous year.
o The IRS mileage rates above are applicable to calendar year 2024. For the
purpose of calculating the fees in this Schedule, staff assumes no change
for future years (dates after December 31, 2023).
• Other Costs:
o Outside Recording/Processing Fees: Certain fees (for example, quitclaim,
annexation, property agreements) include a direct pass-through of any fees
that the District is charged in order to record various documents with related
county or other outside offices and agencies.
FEES WITH ALTERNATIVE COST METHODOLOGIES
Central San March 21, 2024 Regular Board Meeting, Agenda Item 5.
2 IRS Notice 2024-08, "2024 Standard Mileage Rates", available at https://www.irs.gov/newsroom/irs-issues-standard-
mileage-rates-for-2024-mileage-rate-increases-to-67-cents-a-mile-up-1-point-5-cents-from-2023
Report Regarding Environmental and Development -Related Fees and Charges
Page 3
June 6, 2024
The calculations for some fees do not follow the methodology described above. These
alternative methodologies include the following:
Interest Rate — Central San provides various financial assistance agreements to
eligible customers for sewer -related projects, each of which includes an annual
interest charge. The interest rate is determined by calculating the difference (or
"spread") between U.S. Treasury rates for 3 -month and 20 -year Treasury bills at
the end of the most recent calendar year, adding the quarterly rate determined by
the California State Treasurer for Local Agency Investment Fund (LAIF) earnings
at the end of the same period, plus an additional 0.50% intended to cover Central
San's costs in administering these financing programs3. The calculated rate is
applied to agreements executed during the effective period.
"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
"Actual Expense" — Some activities are so variable or unique to particular
circumstances that a standardized cost estimate cannot be reasonably determined
in advance. Since the overall cost can differ from project to project based on the
actual level of effort required, the fees for these activities are stated as "Actual
Expense". Examples include property annexations and activity related to research
and surveying.
PROPOSED FEES AND CHARGES
For FY 2024-25, staff does not recommend additions or subtractions to the Schedule to
account for changes in business processes. A comparison of the current and proposed
fees and charges is included as Exhibit 1.
There are 89 fees on the current schedule. Staff recommends increases to 45 items,
decreases to 0 items, and no change to the remaining 44. The overall median adjustment
is generally +1.3%.
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
3 Previously, this rate was calculated using values for U.S. Treasury and California State LAIF rates reported as of
March 31. Due to the availability of data required to calculate this amount, effective with this year's review the basis
period is being adjusted from March back to the previous December.
Report Regarding Environmental and Development -Related Fees and Charges
Page 4
June 6, 2024
services. The FY 2024-25 District budget projects approximately $2.2 million in Operating
and Non -Operating Revenues for Schedule -related items, consistent with the $2.2 million
budgeted for these items in the FY 2023-24 budget. Although several fee increases are
requested, a lower level of development is anticipated due to uncertainty in the current
economic climate (specifically related to inflation and interest rates) combined with the
impact of other factors on future economic conditions.
SUMMARY
If the proposed revisions to the Schedule are adopted, 45 items will increase, 0 will
decrease, and 44 items will remain the same.
Attached Supporting Document:
1. Comparison of Current & Proposed Fees & Charges for FY 2024-25
CENTRAL CONTRA COSTA SANITARY DISTRICT
COMPARISON OF CURRENT & PROPOSED FEES & CHARGES FOR FY 2024-25
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
$170
$170
0.0%
staking, permit renewal)
Application for new sewer service - new parcel
$352
$353
0.3%
Application for new sewer service - existing parcel
$255
$255
0.0%
Commercial Application (for review of plans for a
change in use or expansion of a commercial facility;
$363
$363
0.0%
includes up to one hour of plan review)
Commercial Application - Each additional hour
$183
$183
0.0%
Overflow Protection Device Installation (OPD only)
no charge
no charge
no change
Side Sewer Cleanout installation (to facilitate
$25
$25
no change
installation of OPD only; permit not upgradable)
Non -Residential Capacity Fee Installment
$533
$540
°
1.3/°
Payment Program Application Fee
Residential Capacity Fee Installment Program and
$533
$540
1.3%
Promissory Note Program Application Fee
(A-2)
Mainline Extensions:
Plan Review (Sewer Service):
Sewer Service Review (Base fee - up to 3
$3,825
$3,859
°
0.9/o
submittals)
Restart Application (where design concept
previously approved & complies with current Std
$1,844
$1,860
0.9%
Specs, up to 3 submittals
Each additional hour
$206
$209
1.50
Manhole only (design & plan review)
$1,182
$11185
0.3%
Plan Review (Recycled Water):
Recycled Water Review (Base fee - up to 8 hours)
$3,457
$3,494
1.1%
Each additional hour
$206
$209
1.5%
Recycled Water Connection only (design & plan
$1,402
°
1.4/o
review)$1,382
Right of Way Document Review:
Appurtenant Easements (Base fee - up to 3
$669
°
2.0/°
hours)$656
Subdivision Map (each) $605 $634
4.8%
Separate Instrument (Base Fee) $779 $809
3.9%
Each additional hour $219 $223
1.8%
Page 1
CENTRAL CONTRA COSTA SANITARY DISTRICT
COMPARISON OF CURRENT & PROPOSED FEES & CHARGES FOR FY 2024-25
Fee Category Current Fee Proposed Fee IF % Change
(A-3)
Private Pumping System Plan Check:
System Compatibility Review for Pump (up to 2
hours)
$437
$446
°
2.1/°
Each additional hour
$219
$223
1.8%
(A-4)
ISpecial Approvals
$419
$419
0.0%
(A-5)
Annexation Fee (per District Code 6.08.030):
New Annexations
Actual Expense Actual Expense 1po
change
Annexation Recovery Fee
$675 $676 1
0.1%
(A-6)
Reimbursement Accounts:
Set-up fee
$1,487
$1,492
0.3%
Transaction fee
$207
$207
0.0%
(A-7)
Special Studies:
Base fee - up to hours; plus misc. costs
$905
4
$921
1.8%
-4
Each additional hour
$185
$189 11
2.2%
(A-8)
Environmental Compliance Reviews:
Environmental Compliance Business Review -
base fee - up to 4 hours; includes plan review,
site visit and inspection time
$1,086
$1,086
0.0%
Each additional hour
$222
$222
0.0%
Grease Variance Review (includes site visit)
$469
$469
0.0%
Environmental Compliance Enforcement Review
and Inspection
$587
$588
0.2%
Page 2
CENTRAL CONTRA COSTA SANITARY DISTRICT
COMPARISON OF CURRENT & PROPOSED FEES & CHARGES FOR FY 2024-25
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.-
t.www.
www.centralsan. orp/pod/hours-directions
(B-1)
Inspections by type:
Mainline base fee
$1,001
$1,021
2.0%
Mainline per foot (includes in-line manholes or
$15.73
$16.04
2.0%
structures)
New Manhole or structure (e.g. recycled water
$1,144
$1,144
°
0.0%
meter)
Overflow Protection Device installation (OPD only)
no charge
no charge
no change
Side Sewer Cleanout installation (to facilitate
$50
$50
no change
installation of OPD onl
Side Sewer Installation / Repair per 100 feet:
$265
$265
0.0%
Single Inspection Charge (e.g. sewer connection;
encroachment verification; side sewer cap on
property; tap and lateral (new or replacement); air
$265
$265
0.0%
test; reinspection; homeowner preconstruction
inspection)
Recycled water connection cross-testing
$692
$700
1.2%
Manhole tap; lateral abandonment at main; pipe
bursting; trash enclosure w/o trap; side sewer CIPP
$530
$530
0.0%
repair; outdoor grease trap only
Manhole Alteration; trash enclosure with trap;
$795
$795
0.0%
grease interceptor abandonment
Outside pump installation
$1,060
$1,060
0.0%
Grease / Sand / Oil Interceptor
$1,590
$1,590
0.0%
(B-2)
Overtime inspection:
First Hour (if responding from off-site)
$152
$153
0.7%
Weekend/Holiday - 4 hour minimum
$449
$453
0.9%
Each additional hour
$99
$100
1.0%
(B-3)
Inspection of non-permitted work; plus avoided
$1,192
$1,192
0.0%
charge(s)
Page 3
CENTRAL CONTRA COSTA SANITARY DISTRICT
COMPARISON OF CURRENT & PROPOSED FEES & CHARGES FOR FY 2024-25
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
$530 per unit
$530 per unit
0.0%
the rough plumbing has been installed. This fee
includes: one building connection inspection and one
side sewer inspection (up to 100 feet). Additional
insipections and related fees may be re uired.
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:
$1,060 per unit
$1,060 per unit
o
0.0%
one building connection inspection, one side sewer
inspection (up to 100 feet), and two additional
inspections as required per CCCSD Standard
Specifications. Additional inspections and related
fees maV 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
$530 per unit
$530 per unit
0.0%
has been installed. This fee includes: one building
connection inspection and one side sewer inspection
(up to 100 feet). Additional inspections and related
fees may be required.
Commercial/Multiple Residential Connections
(more than four units) at building foundation:
This fee is for inspection of new commercial or
multiple residential units connecting to CCCSD's
mainline prior to structure being roofed and rough
plumbing being installed. This fee includes: one
$1,325 per unit
$1,325 per unit
0.0%
building connection inspection, one side sewer
inspection (up to 100 feet), one pre-construction
meeting, and two additional inspections as required
per CCCSD Standard Specifications. Additional
ins ections and related fees may be required.
Page 4
CENTRAL CONTRA COSTA SANITARY DISTRICT
COMPARISON OF CURRENT & PROPOSED FEES & CHARGES FOR FY 2024-25
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
$298
$302
1.3%
Minimum Charge (2 hour minimum)
$596
$604
1.3%
Overtime - First Hour
$213
$215
0.9%
Overtime - Each Additional Hour
$166
$169
1.8%
Overtime - Weekend / Holiday (4 hour minimum)
$711
$722
1.5%
(C-2)
Dye test
$339
$342
0.9%
(C-3)
Collection system repair
Actual Expense
Actual Expense
no change
(C-4)
Cancelled TV Inspection without prior notice
$563
$567
0.7%
(C-5)
Sewer locating and marking
$339
$342
0.9%
•
Establishing right-of-way agreements and resolving conflicts.
(D-1)
Process Quitclaim Deeds$1,267
$1,267
0.0%
Process Quitclaim Deed - plat and legal by others $805
$807
0.2%
(D-2)
Process Real Property Agreement, License, or
Easement:
Base Fee - Up to 4 hours
$1,251
$1,255
0.3%
Each Additional Hour
$168
$173
3.0%
(D-3)
Right-of-way hResearch / Encroachment Resolution
Actual Expense
Actual Expense
no change
(D-4)
Right of Entry / Encroachment Permit Fee
Base Fee - Up to 2 hours $457 $469
2.6%
Each Additional Hour $168-4 $173
3.0%
Page 5
CENTRAL CONTRA COSTA SANITARY DISTRICT
COMPARISON OF CURRENT & PROPOSED FEES & CHARGES FOR FY 2024-25
Fee Category Current Fee Proposed Fee % Change
(E) 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
Annual interest rate for CADs, Septic to
(E-4)
Sewer,Lateral Replacement, Non-residential
3.84%
4.50%
17.1%
Capacity Fee Programs
Multiplier to be applied to Alhambra Valley
Assessment District (AVAD) 2010-11 Parcel
(E-5)
Assessment Amount listed in Ordinance 262 -Exhibit
1.11496
1.13916
2.2%
B to determine AVAD Reimbursement Fee amounts
applicable to connections in FY 2024-25.
Multiplier to be applied to St. Mary's Road
(E-6)
Contractual Assessment District (CAD) 2011-1
1.01511
1.03714
2.2%
Reimbursement Fees listed in Ordinance 279 -Exhibit
B. Applicable to connections in FY 2024-25.
(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)
$0.20
$0.20
0.0%
24" x 36" Plan (per sheet)
$4.00
$4.00
0.0%
CCCSD Standard Specifications
$25.00
$25.00
0.0%
CCCSD Standard Specifications (Pocket Guide)
$5.00
$5.00
0.0%
Page 6
Page 7
10. (Handout 2)
CENTRAL CONTRA COSTA
SANITARY DISTRICT
COMPARISON OF CURRENT & PROPOSED FEES & CHARGES FOR FY 2024-25
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 II Fees (Base fee plus cost of District's lab
$4,168
$4,168
0.0%
analysis)
(F-3)
Class III Fees (Base fee plus cost of District's lab
no charge
no charge
no change
analysis)
(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
$385
$385
0.0%
On-site inspection
$952
$953
0.1%
Additional charge for capacity review (Required
$261
$270
o
3.4 /o
for discharges >50 m
(G)
SEPTAGE -•
Sampling and disposal of septic waste and grease.
(G-1)
Annual permit fee
$1,532
$1,536
0.3%
(G-2)
Residential septic/toilet waste:
< 2,000 gallons
$40 + $0.15/gal.
$40 + $0.15/gal.
no change
> 2,000 gallons
$80 + $0.15/gal.
$80 + $0.15/gal.
no change
(G-3)
Restaurant grease waste:
< 2,000 gallons
$40 + $0.03/gal.
$40 + $0.03/gal.
no change
> 2,000 gallons
$80 + $0.03/gal.
$80 + $0.03/gal.
I 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.
Page 7