The URL can be used to link to this page

Home My WebLink About7 Ordinance to Adjust Water Facility Fees A genda Item # 7 TRUCKEE DONNER Public Utility Distri Ct PUBLIC HE IN To: Board of Directors From: Neil Kaufman Date: September 05, 2012 Subject: Ordinance to Adjust Water Facility Fees 1. WHY THIS MATTER IS BEFORE THE BOARD Board action is required to adjust Facilities Fees. 2. HISTORY The current Water Facilities J 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. 3. NEW INFORMATION A draft of the ordinance adjusting Water Facilities Fees is included as Attachment 1. The Board is required to hold a public hearing before adoption of an ordinance. Adoption of the ordinance is currently scheduled for the October 3, 2012 Board Meeting. 4. FISCAL IMPACT The 2012 Water Master Plan Update recommends that Water Facilities Fees for residential construction be adjusted from $1.64 per square foot of habitable living space to $1.61 per square foot of habitable living space. The 2012 Water Master Plan Update also recommends that Water Facilities Fees for commercial construction be adjusted as shown in the table below: CURRENT PROPOSED METER SIZE EDU FACILITIES FACILITIES inches FE E FEE 5/8 x 3/4 1 $ 31358 $ 41365 3/4 1.5 59037 61547 1 2.5 81395 10,912 1 % 5 16,790 219825 2 8 26,864 34,920 3 15 50,370 65,475 4 25 83,950 109,125 6 50 167,900 2189250 The Contractor's Association of Truckee-Tahoe (CATT) has re uested . . , q that the adjustment of Facilities Fees be phased in over a three year period. CATT h . Y p as also requested that an annual inflation adjustment factor be applied in order to eliminate future large adjustments in Facilities Fees. District staff has reviewed the request from GATT and recommends that the Facilities Fee adjustment be phased in over a two year-period. This shorter period is recommended to more quickly align fees with current costs. The draft ordinance phases the Facilities Fee adjustment over a two-year period and Y then begins inflationary adjustments in January of 2015. 5. RECOMMENDATION Conduct the public hearing to receive comment on the draft ordinance. Michael D. Holley General Manager l Water Utility Manager l Attachment 1 Y ` TRUCKEE DONNER t r I C`;6 3 l. Yv. 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 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 2012 Water Master Plan Update. WHEREAS, this 2012 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, ' 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 2012 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 2012 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 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 for water service and shall be paid prior to provision of water service by new development within the District's water service area. District staff shall determine 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 2012 Water Master Plan Update to be constructed b the District (2)for reimbursin th ' • Y g e 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 2012 Water Master Plan Update, 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 calculated according to a unit value per square foot of living space for the area to be constructed as determined by the Building Permit. The amount shall be: EFFECTIVE DATE UNIT VALUE 60 days after adoption $1.625/square foot January-1, 2014 $1.61/square foot 5. Commercial Facilities Fee — Water facilities fees shall be charged according to the following schedule: METER SIZE EDU FACILITIES FEE FACILITIES FEE (inches) EFFECTIVE 60 DAYS EFFECTIVE AFTER ADOPTION JAN UARY 1, 2014 5/8 x 3/4 1 $ 31862 $ 41365 3/4 1.5 51792 61547 1 2.5 91654 10,912 1 ,/ 5 19,308 21,825 2 8 30,892 34,920 3 15 57,923 65,475 4 25 96,538 109,125 6 50 193,075 218,250 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 for the Facilities Fees values that become effective on January 1, 2014. 7. Fee review — After the completion of any capital project involving the expenditure of over $1,000,000 in Facilities Fees, District staff shall conduct a review of the cost estimates for anticipated Facilities Fee funded projects and the continued need for those projects. The staff shall report its findings to the Board of Directors and recommend any adjustments to the Facilities Fee schedules or other action as may be needed. 8. Pursuant to Government Code Section 66017, this ordinance shall be effective sixty days after the date it was adopted by the Board of Directors. 9. 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 2012 by the following roll call vote: AYES: NOES: ABSTAIN: ABSENT: TRUCKEE DONNER PUBLIC UTILITY DISTRICT By Tony Laliotis, President ATTEST: Michael D. Holley, District Clerk Page 3 Ordinance 2012-XX