Loading...
HomeMy WebLinkAbout04.a.1. PUBLIC HEARING TO RECEIVE COMMENTS ON A PROPOSED ORDINANCE TO ADOPT AN UNCODIFIED "SCHEDULE OF CAPACITY FEES, RATES AND CHARGES"PUBLIC HEARING TO RECEIVE COMMENTS ON A PROPOSED ORDINANCE TO ADOPT AN UNCODIFIED "SCHEDULE OF CAPACITY FEES, RATES AND CHARGES" SUGGESTED AGENDA April 15, 2010 Request Staff Report II. Hearing A. Open Hearing. B. Receive comments, if any. C. Close Hearing. III. Discussion 4.a.1) IV. Recommended Actions: A. Adopt the proposed ordinance to adopt an uncodified "Schedule of Capacity Fees, Rates and Charges" including the following findings: • Existing District customers have made a substantial investment in District assets that benefit both existing and new users. • It is reasonable and necessary that all users of District services and facilities pay an appropriate share of the current value of District assets. • The purpose of the Capacity Fee Program is to equalize the investment in assets between current and new users ensuring that new users pay their fair share for capacity. • The proposed fees rates and charges reasonably and equitably allocate the current value of District assets between existing and new users in each delineated user category. N:\ENVRSEC\POSition Papers\Miyamoto-Mills\2010\Capacity Fees-PP-Agenda-Ordinance 2010\Agenda for Conduct Public Hearing Capacity Fees FINAL 4-15-2010.doc Central Contra Costa Sanitary District ' BOARD OF DIRECTORS POSITION PAPER Board Meeting Date: Aprll 15, 2010 No.: 4.a.1) Public Hearings Type otAction: CONDUCT A PUBLIC HEARING; ADOPT ORDINANCE subject: CONDUCT A PUBLIC HEARING TO CONSIDER ADOPTING AN ORDINANCE REPLACING THE UNCODIFIED "SCHEDULE OF CAPACITY FEES, RATES AND CHARGES" ADOPTED PURSUANT TO ORDINANCE 254 IN ACCORDANCE WITH DISTRICT CODE CHAPTER 6.12 Submitted By: Initiating Dept./Div.: Jarred Miyamoto-Mills, Principal Engineer Engineering/Environmental Services REVIEWED AND RECOMMENDED FOR BOARD ACTION: ~ ~~~.~ J. yamoto-Mills C. Swanson A. Farrell K. Alm ames elly eneral Manager ISSUE: District Code Chapter 6.12 requires that a public hearing be held prior to the Board of Directors' consideration of an ordinance to adopt an uncodified "Schedule of Capacity Fees, Rates and Charges." RECOMMENDATION: Conduct the public hearing. Adopt an ordinance replacing the uncodified "Schedule of Capacity Fees, Rates and Charges" adopted pursuant to Ordinance 254 in accordance with District Code Chapter 6.12. FINANCIAL IMPACTS: Staff estimates that the recommended fees would generate about $150,000 in 2010-11 in additional Capacity Fee revenue based on connection of 600 Residential Unit Equivalents (RUE) in the gravity zone and 400 RUE in the pumped zone. BACKGROUND: In September 1998, the state enacted SB1760 that requires sewer connection fees to be based on one of two methods: 1) a buy-in to existing assets or 2) the cost of future facilities expansion. This bill was enthusiastically endorsed and supported by homebuilders' associations statewide. Since 2001, the method for determination of the fee has been a "buy-in-to-all-assets" approach. This provides a rational, practical, equitable, and defensible method to calculate the financial burden of new connections. The buy-in-to-all-assets approach is preferred primarily due to the "facilities-mature" status of the District. In this context, facilities-mature means that the "current value" of existing assets (over $1.6 billion) is many times the value of future facilities expansion needed to accommodate future customers. Stated differently, most of the facilities needed to serve new customers have already been built and paid for. As a N:\ENVRSEC\Position PapersWliyamoto-Mills\2010\Capacity Fees-PP-Agenda-Ordinance 2010\PP Conduct Hearing Capacity Fees FINAL 4-75-2010.doc Page 1 of 2 POSITION PAPER Board Meeting Date: April 15, 2010 subject CONDUCT. A PUBLIC HEARING TO CONSIDER ADOPTING AN ORDINANCE REPLACING THE UNCODIFIED "SCHEDULE OF CAPACITY FEES, RATES AND CHARGES" ADOPTED PURSUANT TO ORDINANCE 254 IN ACCORDANCE WITH DISTRICT CODE CHAPTER 6.12 consequence, most of the work envisioned in the District's Capital Improvement Plan is for renovation, replacement or upgrading of facilities to maintain capacity for both current and prospective customers. Charging a Capacity Fee based on a buy-in-to-all- assets at the time of connection to the public sewer equalizes the unit investment of each customer as they move from being a "future" to being a "current" customer. The proposed Capacity Fees are as follows: Current Proposed Fee Categorv 12009-101 (2010-111 % change Gravity Zone Fee $ 5,298 $ 5,451 2.9% Pumping Zone Fee $ 6,949 $ 7,092 2.1% The proposed fee increases result principally from the investment of over $44 million in additions, upgrades, renovation, and replacement of capital facilities in 2008-09. Staff conducted a coordinated outreach program to inform and solicit input from interested customers regarding the proposed Capacity Fees and the proposed Environmental and Development-Related Fees, Rates and Charges. Notices of the public hearing were posted and published in the Contra Costa and San Ramon Valley Times. In addition, over 440 letter reports including the proposed schedule of rates and charges were distributed to developers, engineers, architects, contractors, and representatives of the Home Builders Association of Northern California, the Engineering and Utilities Contractors' Association, the Associated Building Contractors Golden Gate Chapter, and others who have requested notice of fee increase proposals. This effort to invite public comment was pursued to encourage affected customers to provide input during the rate-setting process. Comments submitted by the public during the review period will be presented to the Board of Directors at the public hearing. The Budget and Finance Committee reviewed the proposals at its March 15, 2010 meeting and recommends approval. The proposals were also presented in the General Manager's Report at the Board's regular meeting on March 18, 2010. RECOMMENDED BOARD ACTION: Conduct a public hearing to receive comments regarding a proposed ordinance to adopt an uncodified "Schedule of Capacity Fees, Rates and Charges." Adopt findings and the proposed ordinance. Four affirmative votes are required for adoption. N:\ENVRSEC\Position PapersVvliyamoto-Mills\2010\Capacity Fees-PP-Agenda-Ordinance 2010\PP Conduct Hearing Capacity Fees FINAL 4-15-2010.doc - Page 2 of 2 ORDINANCE NO. 258 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 (District) finds that substantial study has been conducted regarding the impacts of planned future development within the District's service area on existing District services and facilities, along with an analysis of new, improved, or expanded District 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 new users and current users who change the use of their connected buildings or facilities, and the need for and estimated cost of District services and facilities occasioned by this added burden; and WHEREAS, these studies were undertaken by District staff and culminated in documents that are part of the public record, to wit: the draft Fiscal Year 2010-11 Capital Improvement Budget & 2010 Capital Improvement Plan, and the Staff Report on Proposed Capacity Fee Program dated March 2010; and WHEREAS, the Board finds that it is reasonable and necessary that all users of the District'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 District services and facilities; and WHEREAS, a properly noticed public hearing regarding the proposed Capacity Fee Program revisions was held on April 15, 2010, 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 the District to implement the proposed uncodified Schedule of Capacity Fees, Rates and Charges; NOW, THEREFORE, the Board of Directors of the Central Contra Costa Sanitary District does ordain as follows: Section 1 (To be Uncodifiedl 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. Ordinance No. 258 Page 2 of 2 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. 254 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. 254 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. Section 3 This Ordinance shall be a general regulation of the District and shall be published once in the Contra Costa Times, a newspaper of general circulation within the District, and shall be effective on July 1, 2010. PASSED AND ADOPTED by the Board of Directors of the Central Contra Costa Sanitary District on the 15th day of April 2010, by the following vote: AYES: Members: NOES: Members: ABSENT: Members: Michael R. McGill President of the Board of Directors Central Contra Costa Sanitary District County of Contra Costa, State of California Elaine R. Boehme Secretary of the District Central Contra Costa Sanitary District County of Contra Costa, State of California Approved as to form: Kenton L. Alm Counsel for the District EXHIBIT "A" SCHEDULE OF CAPACITY FEES, RATES, AND CHARGES (Uncodified) The Capacity Fees, Rates, and Charges listed below were established by Central Contra Costa Sanitary District Ordinance No. 258, adopted April 15, 2010. 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, 2010 in accordance with the provisions of CCCSD Code Chapter 6.12. Gravit Ca aci Fee $5,451 / RUE* Pum in Ca acit Fee $1,641 /RUE *A residential unit equivalent (RUE) is a measure of sewage volume and strength equivalent to a typical residential household. Gravit Zone Fee Zone 1 = Gravit Ca acit Fee Pum ed Zone Fee (Zone 2 = Gravit Ca acit Fee +Pum in Ca acit Fee Residential Unit Equivalence (RUE) Factorsl~t Number of RUE =Unit of Measure County Multiplied by the RUE Factor se Code serGrou nit of Measurel'~2~ Gravity Capacity Fee RUE Factor Pumping Capacity Fee RUE Factor Eligible for Capacity Use Charge Program *=Yes LU Sin le-famil residences Dwellin Unit 1.000 1.000 LA Multiple-family residences, a artments Dwellin Unit 1.000 1.000 LM Mobile homes Dwellin Unit 1.000 1.000 LC Common areas 1,000 s . ft. 0.200 0.200 AB Auto bod / aintin 1,000 s . ft. 0.432 0.467 AD Auto dealershi s 1,000 s . ft. 0.432 0.467 AL Aircraft services 1,000 s . ft. 0.432 0.467 AR Auto re air/maintenance 1,000 s . ft. 0.432 0.467 AS Service stations 1,000 s . ft. 0.432 0.467 BT Trans ortation services 1,000 s . ft. 0.432 0.467 AC Car washes 1,000 s . ft. 21.127 22.829 AW Car washes with rec clin 1,000 s . ft. 3.522 3.805 BB Barbers/beauty salons / et roomin 1,000 s . ft. 0.725 0.783 . BC D cleaners, no laund 1,000 s . ft. 0.259 0.279 BR Retail sales 1,000 s . ft. 0.259 0.279 BE Equipment repair /repair services 1,000 s . ft. 0.228 0.247 (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. Page 1 of 5 SCHEDUL•E'OF CAPACITY FEES, RATES'AND.CHARGES'-,CONTINUED Residential Unit Equivalence (RUE) Factorsl'I Number of RUE =Unit of Measure County Multiplied by the RUE Factor se Code ser Grou nit of Measure~2~ Gravity Capacity Fee RUE Factor Pumping Capacity Fee RUE Factor Eligible for Capacity Use Charge Program "=Yes BK Contractors /business services 1,000 s . ft. 0.228 0.247 BN Nurseries / lumbe ards 1,000 s . ft. 0.228 0.247 IL Li ht industrial 1,000 s . ft. 0.228 0.247 BH Meetin halls /studios 1,000 s . ft. 0.290 0.313 EA Auditoriums /theaters 1,000 s . ft. 0.290 0.313 EC Cinemas 1,000 s . ft. 0.290 0.313 EM Entertainment 1,000 s . ft. 0.290 0.313 EB Bowlin alle s 1,000 s . ft. 0.311 0.336 BZ Miscellaneous commercial 1,000 sq. ft. 0.510 0.551 EG Golf courses /count clubs 1,000 s . ft. 1.166 1.391 EH Health clubs / s as 1,000 s . ft. 1.166 1.391 ET Tennis clubs 1,000 s . ft. 1.166 1.391 IW Warehouses 1,000 s . ft. 0.136 0.147 BM Markets 1,000 s . ft. 0.556 0.601 BX Sho in centers 1,000 s . ft. 1.057 1.142 OB Business offices 1,000 s . ft. 0.295 0.319 OF Financial institutions /banks 1,000 s . ft. 0.295 0.319 OG Government offices 1,000 s . ft. 0.295 0.319 OS Fraternal /service offices 1,000 s . ft. 0.295 0.319 OM Medical offices 1,000 s . ft. 0.637 0.688 OV Veterina clinics 1,000 s . ft. 0.637 0.688 RB Bakeries retail 1,000 s . ft. 4.061 2.178 * RD Delicatessens 1,000 s . ft. 1.166 1.294 RN Bars 1,000 s . ft. 1.166 1.294 RI Ice cream arlors 1,000 s . ft. 1.166 1.294 RY Yo urt sho s 1,000 s . ft. 1.166 1.294 RS Restaurants dine-in 1,000 s . ft. 4.010 2.738 RT Restaurants take-out 1,000 s . ft. 4.010 2.738 * RC Banquet facilities /patio seatin 1,000 s . ft. 1.166 0.825 BL Laundromats 1,000 s . ft. 13.506 14.594 SF Skilled nursin facilities 1,000 s . ft. 2.216 2.347 * FE Residential care facilities for the elder) 1,000 s . ft. 0.932 0.987 HP Hos itals 1,000 s . ft. 2.891 3.124 LH Hotels /motels 1,000 s . ft. 1.166 1.272 CH Churches 1,000 s . ft. 0.242 0.261 (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. Page 2 of 5 SCHEDULE.•OF CAPACITY FEES, t2ATES'AND CHARGES =CONTINUED' Residential Unit Equivalence (RUE) Factorsl'I Number of RUE =Unit of Measure County Multiplied by the RUE Factor Private Schools (SD, SE, SH, SI, SU) Eligible for Gravity Pumping Capacity Capacity Capacity Use Charge Use Unit of Fee RUE Fee RUE Program Code User Group MeasurelZl Factor Factor *=Yes Schools with cafeteria and m /showers Classroom 0.860 1.000 Schools with gym / showers and no cafeteria Classroom 0.774 0.900 Schools with cafeteria and no m /showers Classroom 0.516 0.600 Schools without cafeteria or gym / showers Classroom 0.430 0.500 (1) Fees for multi-use buildings shall be determined by considering each use separately. (2) "Unit-of-measure" shall mean the basic unit that quantifies the degree of use of a particular parcel (e.g. dwelling unit, square footage). Square footage of an improvement shall be based upon the gross exterior dimensions of the structure Page 3 of 5 .,SCHEDULE OF.CAPACITY-FEES, RATES AND CWARGES - CQNTINUED, - :'; 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 Grou BP Parkin lots BS Su ermarkets CM Cemeteries /mortuaries EP Parks / la rounds ES Swimmin ools EF Lar a fitness /athletic clubs LR Residence hotels IE Electronic industries IH Heav industries IP Permitted industries IR Laboratories /research facilities -- Im rovements with arba a dis osals -- Public facilities -- S ecial billin s -- Utilities Values for use in the RUE formula in Section 6.12.050(D)(2) shall be: FLORU = 200 d BODRU = 200 m /I TSSRU = 215 m /I A = 0.69 B = 0.14 C = 0.17 Page 4 of 5 SCHEDULE OF CAPACITY FEES; RATES-AND CHARGES -CONTINUED Capacity Use Charge Program The minimum "initial payment" threshold gravity capacity fee RUE factor shall be 1.166 RUE/per one thousand square feet. Capacity Charge Capacity Use "Initial Pa ment" Char a Rates Pumping Gravity Capacity Current Capacity Fee Fee RUE Year RUE Factor Factor ($/Month Use ~ (RUE/1,000 (RUE/1,000 1,000 Sq. Annual Code User Grou Sq. Ft.) S . Ft. Ft. $/HCF AC Car washes 1.166 22.829 $ 907.39 $ 5.03 AW Car washes with rec clin 1.166 3.805 $ 107.10 $ ~ 3.56 BL Laundromats 1.166 14.594 $ 560.95 $ 4.86 HP Hos itals 1.166 3.124 $ 78.42 $ 3.18 RB Bakeries retail 1.166 2.178 $ 131.60 $ 7.64 RS Restaurants dine-in 1.166 2.738 $ 129.28 $ 5.97 RT Restaurants (paper 1.166 2.738 $ 129.28 $ 5.97 service / no dishwashers SF Skilled nursin facilities 1.166 2.347 $ 47.73 $ 2.52 The annual interest rate for calculation of capacity use charges 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. Page 5 of 5 Item Nos. 4.a.1 and 4.a.2 Central Contra Costa Sanitary District Capacity and Environmental & Development-Related Fees, Rates & Charges Public Hearings April 15, 2010 Schedule for Updating Capacity Fees and Development-Related Fees & Charges • Set Public Hearing Date ---------------- March 18, 2010 • Customer Outreach-------- March 19 to April 15, 2010 • Conduct Public Hearing ------------------- April 15, 2010 • Report on Fee Deferral Program -------- May 20, 2010 • Fee Deferral Program Expires ------------June 4, 2010 (If not a#ended by the Board) • Fees & Charges Effective -------------------July 1, 2010 1 Capacity Fees • This one-time "buy-in" fee is charged at time of connection and is used for capital facility needs. • Annual Capacity Fee revenue has varied between 15-45% of total Sewer Construction Fund revenue, since it is dependent on rate of development. Capacity Fees are adjusted annually to avoid larger increases that would be likely for multi-year adjustments. Capacity Fee Approach • "Buy-in" calculation: Value of Assets = Capacity Fee Number of RUE 2 Recommended Capacity Fees Current Proposed % Chance (per RUE) (per RUE) • Gravity Zone: $5,298 + $153 = $5,451 + 2.9% • Pumped Zone: $6,949 + $143 = $7,092 + 2.1 COMPARISON OF CAPACITY FEES Aoencv Caoacity Fee • Dublin San Ramon Services District $14,965 Pittsburg $9,391 Antioch $9,391 Mountain View Sanitary District $8,597 Bay Point _ $7,880 Proposed CCCSD Pumped Zone $7,092 Current CCCSD Pumpetl Zane $6,949 Proposed CCCSD Gravity Zone $5,451 Current-0CCSD Gravity Zone $5,298 Concord $4,705 West County Wastewater District $2,547 • Other agencies' tees ere for 2W?10 3 Additional Revenue Potential • 2010-11 (assuming 1,000 new units) Additional from Fee Increase TOTAL - Gravity Zone $ 91,800 $3,270,600 (600 units x $153/RUE) - Pumped Zone $ 57,200 $2,836,800 (400 units x $143/RUE) $149,000 $6;107,400 Environmental Services and Development-Related Rates & Charges • Recommended Rates and Charges: Follow recent approach of annual adjustment for changes in salaries, benefits and overhead. • Forty-nine fees would increase; one fee would decrease; twenty-four fees would remain the same; two fee categories would be added. • Range of increases: 1.6%to 18.7% • New fee for "Cleanout Only" • No Charge Permits for Overflow Protection Device • Additional revenue from increased fees would be modest. 4 Customer Outreach • Legal Notices published and posted. • - 440 Letter Reports to Interested Customers: - Home Builders Association s - Applicants, Developers, Engineers, Business Owners and Contractors • Letter Reports handed out at Permit Counter. • Meetings for Customers: - Tuesday -April 6, 2010 at 7 pm - Wednesday -April 7, 2010 at 10 am Findings General • The District incurs substantial costs to provide environmental and development-related services. • The District's existing customers have made a substantial investment in assets that benefit both existing and new users. 5 Findings General • There is a strong and reasonable relationship between the actual added burden/District costs and the proposed fees, rates and charges. • The proposed fees, rates and charges are exempt from the California Environmental Quality Act (CEQA). Findings Capacity Fees • New users generate an added burden on services and facilities. • To maintain an adequate level of service, maintenance of existing capacity, and construction of new capacity in the future is necessary. • The purpose of the Capacity Fee Program is to equalize the investment in assets between current and new users ensuring that new users pay their fair share for capacity. 6 Questions...?