AgdaPkt 2012-10-08 - Laserfiche WebLink

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6.1.H. - Page 1 RE PO RT To the Honorable Mayor and City Council From the Cit Mana er October 8, 2012 SUBJECT By motion, Commence Proceedings to Consider an Adjustment to Sewer Capacity Fees for New Construction and New Development RECOMMENDATION By motion, commence consideration of proceedings to implement an adjustment to Sewer Capacity fees on new construction and new development, from $7.91 per gallon to $10.80 per gallon, pursuant to Section 5.6 (b) of Amendment III to the Joint Powers Agreement establishing the South Bayside System Authority and refer to Council Utilities Committee BACKGROUND In 1984 Redwood City joined with several other cities and public agencies to create a sewer treatment district (the South Bayside System Authority) so that all the agencies would share the cost of construction of a sewer treatment plant and its operation and maintenance. The joint powers authority (JPA) Agreement and the amendments require the member cities and agencies to collect fees from new development to pay to increase the capacity of the sewer treatment plant to enable the plant to provide sewer treatment to the new development. Section 5.6 (b) of Amendment III to the JPA Agreement authorizes the Commission of the South Bayside System Authority (the Authority) to adopt the amount of the capacity fee to be charged and requires the member cities and agencies to commence proceedings to implement any adjustments to capacity fees within three months of notice from the Authority. On July 12, 2012, the Commission of the Authority adopted a Resolution adjusting the capacity fee by increasing it from $7.91 per gallon to $10.80 per gallon, which represents a 36% increase. This would raise the typical residential capacity fee from $2,135 to $2,916. This report to the City Council commences the required proceedings to implement an adjustment. ANALYSIS State law requires that the data and information supporting the amount of the proposed fee increase be made available for public review at least ten days prior to the public hearing to consider the fee. State law also requires a government entity to find that the fee does not exceed the cost to provide the service. (Cal. Gov't Code s. 66013) Therefore, adoption of this proposed fee increase requires consideration of data supporting the need for the increase in order to make the findings required by law and