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City of San Leandro <br />Meeting Date: July 15, 2019 <br />Staff Report <br />Agenda Section:File Number:19-372 PUBLIC HEARINGS <br />Agenda Number: <br />TO:City Council <br />FROM:Jeff Kay <br />City Manager <br />BY:Debbie Pollart <br />Public Works Director <br />FINANCE REVIEW:Not Applicable <br />TITLE:Staff Report for a City of San Leandro City Council Resolution to Amend Title 12, <br />Chapter 5, Section 12.5.115 of the City of San Leandro Administrative Code to <br />Clarify When and How Capacity Fees May Change <br />SUMMARY AND RECOMMENDATIONS <br />Staff recommends that the City Council approve a resolution to amend the City’s Administrative <br />Code to clarify when and how capacity fees may be changed. <br />BACKGROUND <br />The City of San Leandro Administrative Code currently specifies that the Sanitary Sewer <br />Capacity Fee (which is also called a “Connection Fee”) is modified annually on July 1 by an <br />amount less than or equal to the Consumer Price Index (CPI). The proposed amendment would <br />change four things: <br />1. It would allow the City Council the flexibility to change fees at a date other than July 1. This <br />is necessary this year as a result of the timing of the completion of the “Wastewater Utility <br />Capacity Charges Study.” <br />2. Because capacity fees are based on the value of buildings and other facilities, the best <br />practice is to increase the rates by the ENR-20 City Index as published by the Engineering <br />News-Record. This index is specific to the cost of construction and is a better estimate of <br />the value of constructed assets . <br />3. It would allow the City Council to change the rates by other amounts. This is necessary <br />because the value of the assets may change as they are put into or removed from service. <br />They may also need to change as the result of changes in expected discharges from <br />residential customers. <br />4. Section 12.5.115 (c) currently says that all non-residential customers shall have their fees <br />adjusted after one year in service. However, this is not always possible because <br />appropriate meters may not be available and the first year of service may not be indicative <br />Page 1 City of San Leandro Printed on 7/9/2019 <br />186