Reso 2019-084 - Laserfiche WebLink

Home

A capacity charge is a charge to pay for public agencies' facilities in existence at the time the charge is imposed or to pay for new facilities that will be constructed in the future that are of benefit to the person or property being charged (new development or increases to existing service capacity). The charge ensures that the "growth pays for growth" by allocating the cost of new facilities and the cost of unused capacity in existing facilities to new development while allocating the cost of repairing and refurbishing facilities used by current customers to rates. In developing capacity charges, we have endeavored to satisfy the rational nexus criteria generally applied to these types of charges. A rational nexus -based facility reserve charge must: • Be rationally based on public policy that demonstrates a nexus between new development and the need to expand or build facilities to accommodate it. • Not exceed the new development's proportional share of the cost of facilities needed to serve that development, after crediting it for other contributions that it has already made or will make toward that cost. • Not be arbitrary or discriminatory in its application to individuals or customer classes. Capacity charges are intended to recover a portion of the City's Capital Improvement Program (CIP) cost, and utility rate payers' prior investment in capital facilities that support land development through utility system expansion. The Wastewater capacity charges developed in this study meet the regulatory requirements found in Government Code Section 66000 et sequentia regarding the establishment of capacity charges. Section 66013 of the State of California Government Code defines a Capacity Charge as a charge to pay for public agencies' facilities in existence at the time the charge is imposed or to pay for new facilities that will be constructed in the future that are of benefit to the person or property being charged (new development or increases to existing service capacity). The City currently uses the term "Connection Fee" to mean capacity charges collected at the time of connection. Section 66013 of the State of California Government Code defines a connection fee (as opposed to a capacity charge) as a fee for the physical facilities necessary to make a water connection or a sewer connection, including, but not limited to, meters, meter boxes, and pipelines from the structure or project to a water distribution line or sewer main, and that does not exceed the estimated reasonable cost of labor and materials for installation of those facilities. 1-1 DH�'IIVI sc c4 ;oi, bids cinthi^-Ihcet'i�b-11hI ccIto; hc III IIIGflI,il.', sp:e;Hci I fl lN ! cind c4, h'ir000lIIIIcin I.