HomeMy WebLinkAbout8 Upgrade Water System Fees Agenda Item # 8
Memorandum
To: Board of Directors
From: Neil Kaufman and Peter Holzmeister
Date: March 11, 2005
Subject: Upgrade of Water System Facilities Fees
Why this matter is before the board: Staff has been working on a possible revision to
the water facilities schedule since the revised Water Master Plan was adopted by the
board in June of 2004. As a result of comments made by CATT at the last board
meeting the board scheduled a workshop to review the staff proposal.
History: The current water system facility fees were approved in Ordinance 2001-01 in
conjunction with the 2001 Water Master Plan Update. There has been no change to the
water facilities fees since that time. In that Ordinance, Facilities Fees for residential
construction were set at $1.56 per square foot of living space. Facilities Fees for
commercial customers were set as given in Table 1.
Table 1. Current Water System Commercial Facilities Fees
METER SIZE EDU FACILITIES
(inches) FEE
5/8 x 3/4 1 $ 3,086
3/4 1.5 4,629
1 2.5 7,715
1 ��2 5 15,430
2 8 24,688
3 15 46,290
4 25 77,150
6 50 154,300
In June 2004, the board approved the 2004 Water Master Plan Update. The 2004
Update included the impact of the Donner Lake and Glenshire areas on the water
system. The 2004 Update recommended that Facilities Fees for residential construction
be increased to $1.64 per square foot of living space. The recommended increase in
Commercial Facilities fess is given in Table 2.
Table 2. Recommended Commercial Facilities Fees
Given in 2004 Water Master Plan Update
METER SIZE EDU FACILITIES
(inches) FEE
5/8 x 3/4 1 $ 3,358
3/4 1.5 5,037
1 2.5 8,395
1 '/2 5 16,790
2 8 26,864
3 15 50,370
4 25 83,950
6 50 167,900
New information: As in the past, the proposal to change the water facilities fee
schedule is derived from the Water Master Plan. The new master plan uses the Town
General Plan as the foundation for our projections of water demand, and incorporates
Donner Lake and Glenshire service areas. The master plan also updates projected unit
costs for projects that are needed to serve our customers at full build-out. Attached for
the board's review and discussion is a draft ordinance updating water system facilities
fees to the levels recommended in the adopted 2004 Water System Master Plan
Update.
The increase for residential construction is eight cents per square foot of livable space.
This is a five percent increase. Since this is the first increase in four years, the average
annual increase is approximately 1,25%.
Recommendation: We are not suggesting that the board take formal action on this
proposal at this time. This is a workshop item presented to the board for discussion
only. If the board is satisfied that the increase is warranted, your next step would be to
schedule a public hearing.
Attachments:
Draft Ordinance
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Ordinance No. 2005 - XX
Establishing Water Facilities Fees
WHEREAS, a study was conducted of the impacts of contemplated future development on this
District's existing water services and facilities in the District's water service area along with an
analysis of new, improved or expanded public water facilities and improvements required or
appropriate to serve new development and said study set forth the relationship between new
development,those services or facilities and the estimated costs of those improvements.The study
is the District's 2004 Water Master Plan Update.
WHEREAS,this 2004 Water Master Plan Update was available for public inspection and review for
more than ten (10) days prior to this public hearing and notice was given in compliance with
Government Code Section 66016; and
WHEREAS, a public hearing, noticed pursuant to and in compliance with Government Code
Sections 66018 and 6062a, was held at a regularly scheduled meeting of the Board of Directors,
and
WHEREAS, the Board of Directors finds as follows:
A. The purpose of the facilities fee is to finance public water system facilities needed to service
new development and to reduce the impacts of additional demands on the existing water
system caused by new development within the District's water service area.
B. The water facilities fees collected pursuant to this ordinance shall be used to finance the public
facilities described or identified in the 2004 Water Master Plan Update.
C. After considering the Water Master Plan Update and analysis prepared by District Staff and
the testimony received at public hearings, the Board finds that the new development in the
water service area will generate additional need for new water system facilities within the
impacted area as described in the 2004 Water Master Plan Update and will contribute to the
degradation of the public water supply in that area.
D. It is appropriate or necessary in this described impact area to provide for water system
facilities which have not been constructed or have been constructed but new development has
not contributed its fair share towards these facility costs and said facilities.
E. The facts and evidence presented establish that there is a reasonable relationship between
the need for the described public facilities and the impacts of the types of development
described in paragraph three below,for which the corresponding fee is charged and there is a
reasonable relationship between the fee's use and the type of development for which the fee
is charged, as these reasonable relationships or nexus are in more detail described in the
2004 Water System Master Plan referred to above.
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F. In compliance with the California Environmental Quality Act,following a properly noticed public
hearing held at a regularly scheduled meeting of the Board of Directors,the Board did adopt a
Negative Declaration for the adoption of the 2004 Water System Master Plan Update. A
Notice of Determination was filed with both the Nevada and Placer County Clerks in June of
2004.
G. The cost estimates set forth in the 2004 Water Master Plan Update are reasonable cost
estimates for constructing these facilities and the fees expected to be generated by new
development will not exceed the total of these costs.
NOW, THEREFORE, BE IT ORDAINED that the Board of Directors of the Truckee Donner Public
Utility District does hereby enact the following:
1. "New development" shall mean construction of residential improvements, construction of
commercial, industrial or other non-residential improvements,or the addition of floor space to
existing improvements which involve the issuance of a permit for construction or
reconstruction.
2. A water facilities fee shall be charged upon application for water service and shall be paid prior
to provision of water service by new development in the water service area depicted and
described in the 2004 Water Master Plan Update. District staff shall determine if the
development lies within this area, the type of development and the corresponding fee to be
charged in accordance with this ordinance.
3. Use of Facilities Fees-The fee shall be solely used to pay(1)for all costs associated with the
public facilities described in the 2004 Water System Master Plan to be constructed by the
District, (2) for reimbursing the District for the development's fair share of those capital
improvements already constructed by the District, or (3) to reimburse other developers who
have constructed public facilities described in the 2004 Water System Master Plan, where
those facilities were beyond that needed to mitigate the impacts of the other developers'
project or projects.
4. Residential Facilities Fee—Water facilities fees shall be calculated and charted according to
an amount per square foot of living space for the area to be constructed. The facilities fees
shall be $1.64 times the square feet of living space as determined by the Building Permit.
5. Commercial Facilities Fee—Water facilities fees shall be charged according to the following
schedule:
METER SIZE EDU FACILITIES
(inches) FEE
5/8 x 3/4 1 $ 3,358
3/4 1.5 5,037
1 2.5 8,395
1 '/2 5 16,790
2 8 26,864
3 15 50,370 !
I
4 25 83,950I
6 50 167,900
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8. Fee review - On or about March of each following year, the District's staff shall review the
estimated cost of the described capital improvements, the continued need for those
improvements and the reasonable relationship between such need and the impacts of the
various types of development pending or anticipated and for which these fees are charged.
The staff shall report its findings to the Board of Directors at a noticed public hearing and
recommend any adjustment to this fee or other action as may be needed.
9. Pursuant to Government Code Section 66017,this ordinance shall be effective sixty(60)days
after the date it was adopted by the Board of Directors.
10. The Clerk of the District shall immediately cause a copy of this ordinance to be published in a
newspaper of general circulation and posted in three places within the District.
PASSED AND ADOPTED by the Board of Directors at a meeting duly called and held within the
District on the_day of 2005 by the following roll call vote:
AYES:
NOES:
ABSENT:
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
By
J. Ron Hemig, President
ATTEST:
Peter L. Holzmeister, Clerk of the Board
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