HomeMy WebLinkAbout9 Water System Connection Fees Agenda Item # 9
Memorandum
To: Board of Directors
From: Neil Kaufman and Peter Holzmeister
Date: March 11, 2005
Subject: Upgrade of Water System Connection Fees
Why this matter is before the board: This matter is before the board as a workshop
only at this time. It was discussed it briefly during budget review. At the last board
meeting staff was asked to schedule the matter as a workshop item at this meeting.
History: The current water system facility fees were approved in Ordinance 2003-06
and are given in Table 1. Ordinance 2004-01 also considered water Connection Fees,
but kept them at the same level as Ordinance 2003-06.
Table 1. Current Water System Connection Fees
(Applies to Both Commercial & Residential)
METER SIZE CONNECTION
(inches) FEE
5/8 x 3/4 $ 1,040
3/4 1,071
1 Actual cost
1 '/2 Actual cost
2 Actual cost
3 Actual cost
4 Actual cost
6 Actual cost
New information: Since the adoption of the current Connection Fees, the District has
been experiencing increased costs for labor, fuel, materials and other items. It is
appropriate to ensure that the fees charged by the District are adequate to cover the
District's costs. Therefore, a recommended Connection Fee has been developed and is
given in Table 2. The increase is strictly related to inflation of our costs. The increase
is 4.5 %. This is the first increase since 2003, so the average increase in the fee, if the
board adopts it, is 2.4% per year.
Table 2. Current Water System Connection Fees
(Applies to Both Commercial & Residential)
METER SIZE CONNECTION
(inches) FEE
5/8 x 3/4 $ 1,090
3/4 1,124
1 Actual cost
1 '/2 Actual cost
2 Actual cost
3 Actual cost
4 Actual cost
6 Actual cost
Recommendation: This is a workshop item, so no formal action is suggested at this
time. This meeting is for the purpose of review and discussion. If the board reaches
the point where you feel the proposal is warranted the next step would be to schedule a
public hearing.
Attachments:
Draft Ordinance
Ordinance No. 2005 - XX
Establishing Connection Fees
WHEREAS the District's current Connection Fee schedule was established in 2003; and
WHEREAS,the District has been experiencing increased costs for labor, fuel, materials and other
items since that time; and
WHEREAS on , 2005 a public hearing was held to receive public commends on the
proposed Connection Fee increase;
NOW, THEREFORE, BE IT ORDAINED that the Board of Directors of the Truckee Donner Public
Utility District does hereby enact the following:
1. Connection fees are charged to reimburse the District for the actual administrative, material
and labor costs of connecting to the water system (excluding the service lateral).
2. Connection fees shall be charged according to the following schedule:
METER SIZE CONNECTION
(inches) FEE
5/8 x 3/4 $ 1,090
3/4 1,124
1 Actual cost
1 '/z Actual cost
2 Actual cost
3 Actual cost
4 Actual cost
6 Actual cost
3. 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.
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4. If no protest is made pursuant to Public Utilities Code Section 16078,then this ordinance shall
be effective thirty (30)days after the date it was adopted by the Board of Directors.
5. 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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