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Home My WebLink About08.a. Public Notice of Proposed Sewer Service Charge IncreaseCentral Contra Costa Sanitary District ' BOARD OF DIRECTORS POSITION PAPER Board Meeting Date: March 18, 2010 No.: g.a. Administrative Type of Action: AUTHORIZE PUBLIC NOTICE subject: AUTHORIZE THE SECRETARY OF THE DISTRICT TO PROVIDE PUBLIC NOTICE OF PROPOSED SEWER SERVICE CHARGE INCREASE Submitted By: ' Initiating Dept./Div.: Debbie Ratcliff, Controller Administrative /Finance & Accounting REVIEWED AND RECOMMENDED FOR BOARD ACTION: .~/1-~ ~ 1.~- D. Ratcliff raves K. Alm James .Kelly, General Manager ISSUE: To comply with Proposition 218 public notice requirements, the District must provide 45 days' written notice to ratepayers prior to considering a proposed Sewer Service Charge rate increase at a public hearing. RECOMMENDATION: Authorize mailing a public notice of a proposed Sewer Service Charge rate increase of up to $16 for Fiscal Year 2010-2011, effective July 1, 2010. FINANCIAL IMPACTS: The total cost of printing and mailing the public notice to District ratepayers is estimated to be approximately $70,000. ALTERNATIVES/CONSIDERATIONS: Forego a public notice and do not propose a Sewer Service Charge increase or notice an amount less than $16 per year. BACKGROUND: Proposition 218 requires written public notice of Sewer Service Charge increases, and the scheduled public hearing in addition to a required legal notice published. in the newspapers. Compliance with Proposition 218 requires the District to provide at least a 45-day notice to all rate paying property owners for a Sewer Service Charge rate increase. For such notice to be given before the proposed June 3, 2010, Public Hearing, mailing preparations must begin by March 26, 2010 or the noticing will cost an additional $5,000-$10,000. As discussed with the Board at the January 21, 2010, Financial Planning and Policy Workshop and again at the Board Meeting on March 4, 2010, based on the operating and capital needs, regulatory compliance in future years and prudent reserve levels, a Sewer Service Charge rate increase of up to $16 was recommended by staff. The notice must specify the maximum amount of the increase and includes language indicating an amount of up to $16 for Fiscal Year 2010-2011. N:ViDMINSUPWDMIN\POSPAPER\Sewer Service Charge Public Hearing 03-18-10.doc POSITION PAPER Board Meeting Date: March 18, 2010 subject. AUTHORIZE THE SECRETARY OF THE DISTRICT TO PROVIDE PUBLIC NOTICE OF PROPOSED SEWER SERVICE CHARGE INCREASE The $16 increase would be used to offset the loss of ad valorem taxes and no Sewer Service Charge increase in Fiscal Year 2009-2010, salary and benefit cost increases, and capital projects. A copy of the proposed public notice is attached for the Board's consideration. If the notice is authorized, the Board would consider setting the Sewer Service Charge rate at the Public Hearing on June 3, 2010. In order to comply with the Proposition 218 timeline and provide the 45-day ratepayer notice, Board comments are requested on the proposed public notice and authorization is requested for mailing the public notice to residential and nonresidential customers. RECOMMENDED BOARD ACTION: Authorize the Secretary of the District to provide public notice of the proposed Sewer Service Charge rate increase of up to $16 for Fiscal Year 2010-2011, effective July 1, 2010. N:VIDMINSUP\ADMIN\POSPAPER\Sewer Service Charge Public Hearing 03-18-10.doc ~~ Central Contra Costa Sanitary District .~~-` - a, ~ ~`~ ~~"~~'~ '°~~~' ~~~~~~~'~"""`"5019:1mhoffPlace;Mar~tlnez,Ca=94553=4392:'. Profectm;=public Health and the environment ~ ~. NOTICE OF PROPOSED INCREASE IN ANNUAL SEWER SERVICE CHARGE Dear Property Owner Central Contra Costa Sanitary District (CCCSD)'provides sanitary sewer, household hazardous waste collection, and recycled water services in the central county area. Sanitary sewer service includes the operation, maintenance, and construction of public sewer pipelines, pumping stations, our wastewater treatment plant, and the pipeline that discharges clean, treated water to Suisun Bay. To pay for these services, CCCSD collects an annual Sewer Service Charge from each property connected to the sewer system. The current residential rate is $311 per year, billed as a line item labeled "CCCSD SEWER CHG" on the property tax bill you receive from Contra Costa County. (About 300 properties, particularly government and non-profit facilities are billed directly). CCCSD also receives approximately $73 of your property tax for operating, maintaining, and renewing of facilities. In July 2009, the California State Assembly passed a bill as part of the 2009-2010 State budget that allowed the State to borrow 8% of the property taxes collected by counties, cities, and special districts. For CCCSD, that 8% takeaway amounted to more than $960,000. That money is not expected to be repaid until at least 2012. CCCSD did- not increase its Sewer Service Charge after this taking. A service charge increase must be considered so as to provide the resources to continue successfully meeting our National Pollutant Discharge Elimination System (NPDES) permit requirements; collection system improvements to prevent/reduce sewer overflows and meet new overflow reduction regulations; pipeline and facility improvements; and meeting other increasingly stringent and expensive new environmental regulations. Given this significant loss, no Sewer Service Charge increase for FY 2009-2010, and the necessity to continue meeting our regulatory requirements, the CCCSD Board must consider an increase of the annual Sewer Service Charge of up to $16 ($1.33 per month) for a total of $327/per year, effective July 1, 2010. FOR RESIDENTIAL CUSTOMERS, whether single-family home, mobile home, townhouse, condominium, apartment, or other multi-family home, this will be a maximum increase of just slightly more than 5% over the present rate, or $327 per year. FOR NONRESIDENTIAL CUSTOMERS ONLY: The service charge rates are calculated for each customer group based on the cost to provide service, considering both the quantity of sewage discharged and other sewage characteristics affecting the cost for treatment. The service charge increases being considered for this category are shown on the reverse side of this notice. NOTICE IS HEREBY GIVEN, that the Board of Directors of the Central Contra Costa Sanitary District will hold a PUBLIC HEARING on this matter in the CCCSD Board Room, 5019 Imhoff Place, Martinez, California, on Thursday, June 3, 2010 at 2:00 p.m., at which time and place interested persons may appear and be heard. Written comments or protests should be mailed to the Secretary of the District at 5019 Imhoff Place, Martinez, CA 94553, or emailed to ratesCa~centralsan.org and must be received by 5:00 p.m. on May 28, 2010 to ensure a full review. If you have questions about the proposed Sewer Service Charges, please call CCCSD's Environmental Services Division at (925) 335-7739. Notice mailed by April 16, 2010 CURRENT 8~ PROPOSED SEWER SERVICE CHARGE RATES FOR NONRESIDENTIAL CUSTOMERS USER GROUP CURRENT RATE PROPOSED RATE FY 2009-2010 EFFECTIVE JULY 1, 2010 Commercial and Other Non-Industrial Customers (aer Hundred Cubic Feet (HCF11 Bakeries $7.95 $8.36 Supermarkets with garbage disposals $6.00 $6.31 Mortuaries $5.66 $5.95 Restaurants $5.89 ~ $6.19 Others ~ $2.88 $3.03 Minimum Annual Charge $323.00 $340.00 Industrial Customers Flow per million gallons $1,586.00 $1,668.00 Biochemical Oxygen Demand per thousand pounds $661.00 $695.00 Suspended Soilds per thousand pounds $473.00 $497.00 Demand per million gallons per day $190,612.00 $200,418.00 Minimum Annual Charge $323.00 $340.00 Special Discharge Permits and Contracts Determined individually Determined individually Notes: A nonresidential customer's annual sewer service charge is determined by multiplying the appropriate user group rate times the annual wastewater discharge volume measured in HCF (Hundred Cubic Feet), usually estimated from the property's water use. For example, a bakery discharging 250 HCF per year would pay an annual sewer service charge at the July 1, 2010 proposed rate calculated as follows: ($8.36 per HCF) x (250 HCF per year) _ $2,090.00 Alternatively, for fiscal year 2010-2011, the annual sewer service charge can be estimated by multiplying the amount listed beside "CCCSD SEWER CHG" on your 2009-2010 property tax bill by 1.051, which assumes equivalent water use. If you are billed directly, multiply the amount on the 2009-2010 invoice by 1.051. If you have questions regarding the Sewer Service Charge program, or would like us to calculate aproperty- specific estimate of the sewer service charge for 2010-2011, please send an a-mail request including your name, Assessor's Parcel Number, address and phone number to rates(a)centralsan.org, or call the CCCSD Environmental Services Division rate hotline at (925) 335-7739. Additional information is available on the CCCSD website: www.centralsan.org. Item ~~'.a & ~(:.b Central Contra Costa Sanitary District Proposed Capacity Fees & Environmental and Development-Related Rates & Charges March 18, 2010 Schedule • Set Public Hearing Date ------ March 18, 2010 • "Outreach" --------- March 19 to April 15, 2010 • Conduct Public Hearing --------- April 15, 2010 • Fees & Charges effective----------July 1, 2010 1 Capacity Fees • This one-time "buy-in" fee is charged at time of connection and is used primarily for capital facility needs. • Capacity Fees are ~25-30% of long- term Sewer Construction Fund revenue. • Annual Capacity Fee revenue is somewhat unpredictable since it is dependent on rate of development. Capacity. Fee Approach • "Buy-in" calculation: Value of Assets ---------------------- =Capacity Fee Number of RUE This approach avoids having current customers subsidize new connectors. 2 Current Capacity Fees • Gravity Zone: • Pumped Zone: $5,298 /RUE $6,949 /RUE Proposed Capacity Fees • Gravity Zone: $5,451 /RUE (+2.9%) • Pumped Zone: $7,092 /RUE (+2.1%) 3 Environmental Services and Development-Related Rates & Charges • Recommended Rates and Charges reflect: - Revisions to address actual cost of services and benefits of process improvements. • If adopted, 49 fees would increase, 1 would decrease, and 24 would remain unchanged. Public Outreach • Letters (400) - Home Builders Association - Applicants, Developers, Engineers, Business Owners and Contractors • Meetings with Customers (tentative dates) - April 6, 2010 at 7 pm - April 7, 2010 at 10 am 4 Schedule • Set Public Hearing-Date ------ March 18, 2010 • "Outreach" --------- March 19 to April 15, 2010 •~ Conduct Public Hearing --------- April 15, 2010 • Fees & Charges effective----------July 1, 2010 Questions...? 5