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Home My WebLink About13 Adopting an Ordinance Adjusting Water Facilites Fees Agenda Item # 13 TRUCKEE DONNER Public Utility Dlstnct ACT I O N To: Board of Directors From: Neil Kaufman Date: October 03, 2012 Subject: Consideration of Adopting an Ordinance Adjusting Water Facilities Fees 1. WHY THIS MATTER IS BEFORE THE BOARD Board action is required to adjust Facilities Fees. 2. HISTORY The current Water Facilities Fee schedule was adopted in April 2005. No adjustments have been made since that time. In July 2012, the Board adopted the 2012 Water Master Plan Update. The Water Master Plan Update recommended that Facilities Fees be adjusted. These adjustments are needed to keep pace with costs of planned projects. A public hearing regarding the draft ordinance was held on September 5, 2012. At the hearing, Ms. Davison of the Contractors Association of Truckee Tahoe voiced a number of comments regarding the draft ordinance. 3. NEW INFORMATION A draft of the ordinance adjusting Water Facilities Fees is attached. The language given in Article 6 has been revised based upon comments from Ms. Davison. In addition, the reduction in Residential Facilities Fees from $1.64/square foot to $1.61/square foot now occurs in a single step. This change is based upon advice from the District's legal counsel. Also attached is a copy of Figure 5-2 from the final 2012 Water Master Plan Update. This figure shows the relationship between the projected increase in water demand and available water production capacity. As shown in the figure, an increase in production capacity (construction of a new well) is anticipated whenever the future maximum day demand exceeds the firm production capacity. It is quite likely that the actual increase in future water demand will vary somewhat from the projection given in the graph. Correspondingly, the construction of new wells would be adjusted in response to the actual growth in water demand. However, such a variation in the growth of water demand will not eliminate the need for increased v water supply production capacity in the future and it will not impact the need to collect the appropriate Facilities Fees from new construction that contributes to this increase in water demand. 4. FISCAL IMPACT The draft ordinance adjusts Water Facilities Fees for residential construction from $1.64 per square foot of habitable living space to $1.61 per square foot of habitable living space. Water Facilities Fees for commercial construction are adjusted in two steps. PROPOSED RESIDENTIAL WATER FACILITIES FEE ADJUSTMENT EFFECTIVE DATE UNIT VALUE Current Fee $1.64/square foot 60 days after adoption $1.61/square foot PROPOSED COMMERCIAL WATER FACILITIES FEE ADJUSTMENT CURRENT EFFECTIVE EFFECTIVE METER SIZE E D U FACILITIES 60 DAYS JAN UARY 1, (inches) FEE AFTER 2014 ADOPTION 5/8 x 3/4 1 $ 31358 $3,862 $ 41365 3/4 1.5 5,037 59792 69547 1 2.5 81395 99654 109912 1 Y 5 16,790 19,308 21,825 2 8 26,864 30,892 34,920 3 15 50,370 57,923 65,475 4 25 83,950 969538 1099125 6 50 167,900 193,075 1 218,250 The draft ordinance includes a clause whereby Facilities Fees are adjusted annually to consider the impact of inflation beginning in January of 2015. The draft ordinance also includes a clause whereby Facilities Fees would be reviewed after the completion of any capital project involving the expenditure of over$1,000,000 in Facilities Fees. 5. RECOMMENDATION Adopt Ordinance 2012-XX adjusting Water Facilities Fees. Michael D. Holley General Manager 1 Water Utility Manager Attachment 1 Ordinance No. 2012 - 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 wat vice area along with an analysis of new, improved or expanded public water facilities :_ ==- rovements required or p appropriate to serve new development t and said study set f_ ::: relationship between new development, those services or facilities theestimateis those improvements. The study is the District's s2 12Wat r Ma ster PIanU Update. - - -- - WHEREAS, this 2012 Water Master Plan Update av ailable for ublic............= cti n p _-__ p _ o and review for more than ten (10) da s rior to this ublic hWi 'and notice was even�i mom lian Y p p ..: g p ce with v _- - Government e nm n e tC Code Section _0 6 1 60 6 -_an WHER EAS, apublic hearin n _of i ce d pursuant u a n t to :::i::_ :��:�=-��:gin g, p - .::::::: _::::_ pliance with Government Code Sections 66018 and 6062a, was held _ _ regularly sch. meetin of th- g y - ---= g e Board of Directors, and � l -__-___WHEREAS theBoard ofDerectorsfind oo _A. The pu rpose ose f . f - p p -- .. �n :�:::::; ut�� ==: ae r system m facilities i i _ -_ - - p -- _ t es needed to --- service - se i ce n ew - _ e :-:� ent = : � uc acts of-__ - - _ - _ p additional demands on the existing water to system m .=-==-d b n eve`--_-.._:`: y r. y elo meithin the Districts water service area. p The water - _to f - .-..-.-fees c : ��=��=�=:�=== : :::::::- -- ��.... Q F :.:::::: rsuan == this ordinance shall _ - ..:::... ..:.:.:.: a be used to finance the public facilities dee _ e =-.: p =. --- 2 Water Master Plan Update. - - -- p == - C. _f _ :.: nsi ..:._ __the 1r Master Plan Update and_ = p analysis prepared b District Staff ...--. the testimor :- = :.:`--c iv Y a e .:: __:.public hearings, the Board finds that the new development =_ a water serve ::-:`_= _ rea v :generate additional need for new waters stem facilities _-- -. y :::the im pacted m acted �� a as c �cribed in the 2:__ p = 012 Water Master Plan Update and will come to the de ra "= _i n__- g o of the public water supply in that area. D. It is a pr :: te or sa this d pp r ::..:_._.._.. _ _-- ry in described impact area to provide for water system ` iifacilities whrdii =_ ay.- been_ __.:.:_:: constructed or have been constructed but new development has not contri �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 2012 Water Master Plan Update referred to above. F. In compliance with the California Environmental Quality Act, following a properly noticed p p Y 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 2012 Water System Master Plan Page 1 Ordinance 2012-XX Attachment 1 Update. A Notice of Determination was filed with both the Nevada and Placer County Clerks in July of 2012. G. The cost estimates set forth in the 2012 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. __ = = 2. A water facilities fee shall be charged upon application fo =`der sere' g p pp ...........:::::::::: _:_:: ice and shall be paid sScilt>'=>':'"`z�':>33::?. prior to provision of water service by new developme =:_fie District's water service area. District staff shall determine the type of deve-lo � nt � corresponding fee to be ch arged in accordance r dance wi th this ordinance.o an _-_- - __- _ - _ 3. Use f o Fa cilities i - t es Fe es s T -- h of fee shall al so e _ ed to pay (1)for all coo associated with the public facilities described in p the 2012= r Master Plan Update to nstructed b Y the District, tc t (2)f or r i em bri _usn t h e Di stri _e d eve I.-_ =�=�=-�_-:_gin i s fair t g =- - a share:�c �� ose capital improvements already constructed b the Dr- _ t === to reimburse Y :. .:::::::::a: ::::...... other developers who have constructed public facilities descri =�"=. p bed: 2012 Water Master Plan Update, whe re re tho se se facilities ili ti es were _ �_ -= 4611�i:::i_.M i.: hat needed` ti ate the im acts of th e other _ .. __..deve developers' or - - 4. Residential F a it Faci lities s_ .::F .e:eW- at r --- - __ .:_::-c._-- c _ d according to a unit val ue a I ._per square of of tructed as determined by the Building i o Perm011 be: :- _ F .......... F E E - T� ��--DATE -- -- - UNIT _ VA-- UE a..._. aft r ad _- -_ - --_ - - $1.61/square foot 5. _- =``'mmercial F acilrf _ Fee ter facilities fees shall -- lk - all be charged according to the c n sche dule: - ME1"` __ IZE J FACILITIES FEE FACILITIES FEE �i --- EFFECTIVE 60D DAY S EFFECTIVE R ON T- E--- AD OP-- -- TI--- - -_ -_- JAN VARY 1 20 14 4 /8 x _ _ 1 $ 31862 $ 41365 3/4 -=== 1.5 51792 61547 1 2.5 91654 10,912 1 Y2 5 19,308 21,825 2 8 30,892 34,920 3 15 57,923 65,475 4 25 96,538 109,125 6 50 1 193,075 218,250 Page 2 Ordinance 2012-XX Attachment 1 6. Commencing on January 1, 2015, Facilities Fees shall be adjusted annually at the beginning of each fiscal year to reflect the impact of inflation upon the cost estimates set forth in the 2012 Water Master Plan Update. Such adjustments shall be based upon the December value of the Engineering News-Record 20-City Construction Cost Index (ENRCCI). The ENRCCI value for December 2013 shall be used as the baseline for the Facilities Fees that become effective on January 1, 2014. The change in ENRCCI from December 2013 to December 2014 shall be used to calculate the Facilities Fees that become effective January 1, 2015. Successive years shall utilize a similar calculation. 7. Fee review — After the completion of any capital project involy :the expenditure of over $1,000,000 in Facilities Fees, District staff shall conduct a rioww of the cost estimates for anticipated Facilities Fee funded projects and the contined for those projects. The staff = _ p J shall re port ort i fin dings n d i n s to h -- - t eBoard of Directors .== �� =`gym n p g . end any adjustments to the Facilities Fe = _e schedules or other action Y .:�.: a -- - 8. Pursuant to Govern me nt Cod e S ection 6601_ 7 _ = ordinan ce sha -_:-_ ective sixty . days afert the itwasadoptodbYh _��- -: �rectars. -- :_-_- . .- :_. de ae p u b l i s9 The Clerk fthstrcts all imme ' to pY h e d in a newspaper of general circulation and t t os l ```aces within the Di p strict. PA SSED SSED AND ADOPTED O T ED b _the Boa=:___:__ :. - y _ erectors at a"- tin dul called and held within the District st i ct on th e eiNday of 2 y 0 2 y �_:_:- _l: w i n ro l 1�� _ro to. 9 AYS E -- -- NOES: --- ABSTAIN: - -- A46- B _:_ .......... TRUDON N E R P _ I C UTY DISTRICT Y Tony t ATTEST: ==..........Michael D. Holley, District Clerk Page 3 Ordinance 2012-XX Figure 5-2. Projected Potable Water Demand vs. Proposed Production Capacity, 1995-2030 25.0 ---+—Historic Maximum Day Demand — —Future Maximum Day Demand Projection �—Potable Water Production Capacity Firm Potable Water Production Capacity 2 0. ------------------------------------------------------------------------------------------------------------------------------------------------------------------------ 100,00 ----------------------------------------------------..-.----------..------------------------------ 15.0 - - - -- _ .......- -- - - - -- - ----------------._....-.... - - -- --------------------------- -- - ,,- -- - - 000, 0000 0 --------------------------------------------------------------------------------------------- ----------------------------------------------........._----------------------------------------------------------------------------------- ---fir.............................................--.............................-............... -------------- 5.0 ------------------------------------------------------------------------------ 0.0 1995 2000 2005 2010 2015 2020 2025 2030 Year