HomeMy WebLinkAbout10 Connection Fee Update - March 2022AGENDA ITEM #10
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MEETING DATE: March 2, 2021
TO:Board of Directors
FROM: Neil Kaufman, Water System Engineer
SUBJECT:Scheduling a Public Hearing Regarding Setting Water Utility
Connection Fees and Water Meter Box Upgrade Fees
APPROVED BY______________________________
Brian C. Wright, General Manager
RECOMMENDATION:
Schedule a public hearing at the regularly scheduled District Board Meeting on April 6,
2022 at 6:00PM, or soon thereafter, for the purposes of receiving input on the adoption of
Ordinance 2022-01, related to the adjustment of Water Utility Connection Fees and Water
Meter Box Upgrade Fees.
BACKGROUND:
The District has three fees associated with the construction of new water utility services:
1. Water Facilities Fee
2. Water Connection Fee
3. Water Meter Box Upgrade Fee
Facilities Fee
The Facilities Fee is governed by Ordinance 2012-01. As noted in that Ordinance:
“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.”
Ordinance 2012-01 also includes language to adjust the Facilities Fee on an annual basis
to account for inflation and the Facilities Fee schedule was most recently adjusted on
January 1, 2022.
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For single-family residential (SFR) development, the Facilities Fee is based on the
habitable living space of the new home. In this manner, larger homes will be charged a
higher fee. Ancillary spaces such as garages and decks are not included in the calculation
of habitable living space. The current Facilities Fee for SFR development is $2.06 per
square foot.
For other development, the Facilities Fee is based upon the size of the water meter for the
project. Water meter sizing is determined from the peak flow rate required for the project
as determined by the developer’s engineer. The current fee schedule is:
Meter Size
(inches)
Facilities Fee
5/8 x 3/4
3/4
1
1-1/2
2
3
4
6
$ 5,634
8,454
14,088
28,179
45,086
84,534
140,890
281,779
Connection Fee
The Connection Fee is governed by Ordinance 2012-02. As noted in the Ordinance:
“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).”
Ordinance 2012-02 does not include language for an annual inflationary adjustment and
Connection Fees have not been adjusted since 2012. The current Connection Fee
schedule is:
Meter Size
(inches)
Connection Fee
5/8 x 3/4
3/4
1
1-1/2
2
3
4
6
$1,290
$1,330
$1,430
Actual cost
Actual cost
Actual cost
Actual cost
Actual cost
Water Meter Box Upgrade Fee
The installation of fire sprinklers is required for all new SFR structures and duplexes
constructed after January 1, 2011. This requirement was established by the State of
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California with the adoption of an updated building code in 2010.
Prior to 2011, the Water Department had not considered the need to provide fire sprinkler
flows to SFR properties in its design and construction standards. These flows range
between 25 gpm and 45 gpm. With the new requirement, a number of parameters were
considered and the following was determined:
1. All water provided to a SFR will be provided through a single metered point of
service. The use of unmetered fire sprinkler connections will not be allowed,
2. 5/8” x 3/4" meters cannot be installed at a SFR where the District is providing fire
sprinkler flows because this size meter would create too much flow restriction.
3. Installation of 3/4" and 1” meters would be allowed for SFR. 1-1/2” and larger
meters are not capable of accurately measuring the lower flow ranges normally
encountered at a SFR.
It was also determined that it would be necessary to conduct a hydraulic analysis for each
new SFR. This analysis would consider the size, length and material of the existing
service lateral; the plumbing configuration of the existing meter box; and the available
pressure at the property.
Within the subdivisions that were constructed prior to 2011, the existing service lateral and
meter box to a given vacant lot are capable of providing the necessary fire sprinkler flows
at a sufficient pressure in some cases. However, in the great majority of cases, the meter
box plumbing is a flow restriction that can be reduced with a different piping configuration.
When an owner/developer decides to move forward with construction of a new SFR, they
will submit a project data sheet to the District. The data sheet gives relevant data
regarding the project such as address, contact information, house size and estimated
domestic water demand. After receiving the data sheet, the hydraulic analysis is
conducted and a letter to the owner/developer is prepared. The letter documents the
available options for the property and lists the flow and pressure available for each option
(a sample response letter is attached for informational purposes). These options would
include some combination of:
1. Installation of a 3/4" meter in the existing meter box
2. Installation of a 1" meter in the existing meter box. This option is only possible for
subdivisions constructed after 2011.
3. Installation of a 3/4" meter in an upgraded meter box.
4. Installation of a 1" meter in an upgraded meter box.
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5. Installation of a 5/8” x 3/4" meter in the existing meter box. This option is only
allowable at locations where the owner/developer will install a storage tank and a
pump to meet the fire sprinkler requirement.
The Connection Fee covers the cost of labor and materials associated with installation of a
meter at a given property. However, it does not cover the cost of the additional labor and
materials necessary for the upgraded meter box in Options 3 & 4.
During 2011 through 2013, a billable work order was created for each new SFR that
requested a meter box upgrade and the owner/developer was charged for these additional
costs. As the pace of SFR construction increased, the number of individual work orders
became quite burdensome and it was decided to adopt a flat fee for this work. This flat fee
was based on the average actual costs from the billable work orders and was presented to
the Board and adopted in April 2014.
The Water Meter Box Upgrade Fee is governed by Ordinance 2014-03. The ordinance
does not include language for an annual inflationary adjustment and Water Meter Box
Upgrade Fees have not been adjusted since that time. The current fee schedule is:
Water Meter Box Upgrade Fee for box not previously upgraded $600
Water Meter Box Upgrade Fee for box previously upgraded $150
For SFR development, the great majority of meter boxes throughout the distribution system
house double service connections intended to serve two adjoining parcels. In cases where
both adjoining lots are currently vacant, the meter box upgrade is performed when the first
SFR is constructed. That owner/developer is charged $600. The incremental cost of labor
and materials associated with the lot to remain vacant is covered by the District and the
owner/developer is charged $150 when that second SFR is constructed at a later date.
For a situation with an older home without fire sprinklers on one lot and the second lot
currently vacant, the meter box upgrade is performed when the vacant lot develops. That
owner/developer is charged $600. The owner of the existing home is not charged any
fees.
For other development besides SFR, the owner/developer is charged the actual cost of the
work for any necessary meter box upgrades.
Water Connection Fee and Water Meter Box Upgrade Fee Adjustment
The District has experienced sizable increases in the cost of labor and materials since the
Water Connection Fee and Water Meter Box Upgrade Fee were adopted. District staff has
reviewed the current costs and the following fee schedules are recommended.
Meter Size
(inches)
Current Connection
Fee
Proposed New
Connection Fee
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5/8 x 3/4
3/4
1
1-1/2
2
3
4
6
$1,290
$1,330
$1,430
Actual Cost
Actual Cost
Actual Cost
Actual Cost
Actual Cost
$1,800
$1,860
$2,000
Actual cost
Actual cost
Actual cost
Actual cost
Actual cost
Water Meter Box Upgrade Fee for box not previously upgraded $880
Water Meter Box Upgrade Fee for box previously upgraded $220
It is also recommended that an annual inflationary adjustment be performed using the
same methodology as the adjustment of the Facilities Fee.
A draft copy of Ordinance 2022-01 has been included with this staff report as Attachment
2, which adjusts the Water Connection Fee and Water Meter Box Upgrade Fee for review
and consideration.
FISCAL IMPACT:
The existing Water Connection Fee and Water Meter Box Upgrade Fee are not sufficient
to cover the District’s costs for these activities. Adjusting these fees to reflect current costs
and including an inflation adjustment methodology will allow for this development activity to
remain revenue neutral.
ATTACHMENTS:
Attachment 1: Sample response letter