COUNTY OF SAN MATEO

Inter-Departmental Correspondence

Department of Public Works

DATE:

March 13, 2002

BOARD MEETING DATE:

March 26, 2002

TO:

Honorable Board of Supervisors

FROM:

Neil R. Cullen, Director of Public Works

SUBJECT:

Revisions to Fees and Charges Associated with the Sewer/Sanitation Districts Governed by the Board of Supervisors

Recommendations

Adopt an Ordinance amending Chapter 4.24 (Sewer Connections) which will:

a.

update the fees charged to recover the cost of services provided by the Department of Public Works in conjunction with annexations, connections, inspections or miscellaneous services associated with the nine Sewer/Sanitation Districts (District) governed by your Board; and

b.

update the Ordinance Code to clarify connection and treatment capacity charges.

Previous Board Action

Adopted an ordinance:

1.

in 1982 setting the fee for annexations;

2.

in 1985 setting Sewer Connection and Treatment Capacity Charges; and

3.

in 1991 setting Sewer Inspection Permit fees

for the Districts.

Key Facts

The fees that are currently charged for reviews, inspections, processing agreements or miscellaneous services related to the Districts do not cover the cost to provide these services.

Discussion

Your Board is the governing board of nine Districts that provide sewer collection services for different specific areas of the County. The Districts are financed primarily by sewer service charges that are levied on the properties that receive sewer service from the Districts, and with special charges associated with requests for special services. Special services include processing annexations to the Districts; individual inspections; plan reviews; creating and processing buy back agreements to reimburse property owners who have to install sewer mains to obtain service to their property, where the sewer mains can serve other properties that may also want sewer service at a later date; or other miscellaneous services. The recommended changes to the County Ordinance Code will update the fees for these various services to recover the costs associated with providing the specific service.

A summary of the proposed changes in the charges are as follows:

Service

Current Charge

Proposed Charge

Date When Charge Last Considered

Annexation

$400

$800

1982

Sewer Inspection

$50

$100

1985

Plan Review and Inspections

No Charge

$150 Minimum Charge

Not Applicable

Buy Back Agreements

No Charge

$500

Not Applicable

Miscellaneous Services

No Charge

$150 Minimum Charge

Not Applicable

Annexation Fees

Persons wishing to annex their property to a District currently pay an annexation fee of Four Hundred Dollars ($400). This charge is to cover the staff time used to prepare two reports to your Board with associated resolutions (setting a time and date of hearing and the hearing on the proposed annexation), publication of a notice of hearing and processing a payment to the State Board of Equalization for the change in the tax roll. Staff also prepares a map of the proposed area to be annexed as the State regulations governing the annexation process requires development of a map that will be filed with the State Board of Equalization. We are recommending that the annexation fee be increased by $400 to $800. The annexation fee was last adjusted in 1982.

Sewer Inspection Permit

A Sewer Inspection Permit (SIP) Fee is charged to cover the District's cost to inspect work done by private contractors to ensure that the work complies with the District's standards. A SIP is required when a property owner installs a new or replacement lateral connection to a District sewer main, or installs a clean-out on the sewer lateral (that portion of the sewer connecting the house plumbing to the District's sewer main). We are recommending that the SIP fee be increased by $50 to $100. The SIP fee was last adjusted in 1974.

Sewer Main Extension Review and Approval

Sewer main extensions involve both plan review and inspection. The District's cost to conduct the plan review and construction inspection varies depending upon the size and complexity of the project. Main extensions usually require multiple plan reviews. Inspection includes observing tests for leaks, sags and off-sets. A video of the new section of main is made and reviewed by staff. When construction of the main extension is completed and inspected, a dedication of the facility to the appropriate District is also processed.

We are recommending that your Board approve of a minimum non refundable fee of $150 plus a deposit in an amount estimated by the Director of Public Works to cover the cost to review plans, inspect construction and process the dedication of the main extension to the appropriate sewer district. The balance from the deposit remaining at the completion of the project would be returned to the applicant.

Buy-back Agreements

When a person constructs a sewer main extension in order to connect their property to District Facilities, they may request the development of a Buy-back Agreement. Under a Buy-back Agreement the person who paid for the sewer main extension may recover a proportionate share of the construction cost from individuals who subsequently connect to the extension that they built. Buy-back Agreements are generally for fifteen years. They are drafted by Public Works and executed by both the developer of the sewer main extension and your Board. Currently there is no charge for Buy-back Agreements. We are recommending a Five Hundred Dollar ($500) fee to recover the cost to develop and administer a Buy-back Agreement.

Miscellaneous Services

Occasionally, staff is asked to provide information to property owners who are not within a district but who are:

investigating wastewater treatment options that may involve a district;

evaluating remodeling their building and are investigating alternate means of obtain sewer service; or

investigating relocating existing District facilities that may be within easements on the individual's property.

We are recommending that your Board approve a minimum non refundable fee of $150 plus a deposit in an amount estimated by the Director of Public Works to cover the cost to do miscellaneous investigations that we may be requested to do, but which are more for the benefit of the individual than the collective rate payers of a District. The balance from the deposit remaining at the completion of the investigation would be returned to the applicant after the investigation is completed.

Sewer Connection and Treatment Capacity Charges

Any property owner within a District who wants their property connected to District facilities is required to pay a Connection Charge and a Treatment Capacity Charge. The Connection Charge represents a proportionate share of the capital cost of constructing the existing sanitary sewer system; and the Treatment Capacity Charge represents a share of the cost to acquire treatment capacity in the wastewater treatment plant that processes the sewage collected from the property. The changes in this section of the Ordinance Code are for the purpose of clarification only. The Ordinance Code currently provides the sewer connection and treatment capacity charges be increased yearly based on the Construction Cost indexes and no changes in this methodology is recommended.

Vision Alignment

We believe our recommendation is consistent with Goal Number 21, "County Employees Understand, Support and Integrate the County Vision and Goals into their Delivery of Services," of the Shared Vision Commitment to be a "Responsive and Effective and Collaborative Government," as the recommendation insures that the Districts can continue to provide services as requested by individual property owners without burdening the other rate payers in the respective District.

Fiscal Impact

The estimated additional revenue expected from the fee revisions is:

·

Annexations

$4,000

·

Sewer Inspection

$5,150

·

Main Extensions

$4,000 - $8,000

·

Buy Back Agreements

$500

·

Miscellaneous Sewer Fees

$450

There is no impact on the General Fund.

A form of Ordinance has been approved by County Counsel.