CC 2013-02-12_08.b. Annual Adjustment of Sewer Connection FeesMEMORANDUM
TO: CITY COUNCIL
FROM: RYAN CORNELL, INTERIM DIRECTOR OF ADMINISTRATIVE
SERVICES~
SUBJECT: CONSIDERATION OF ANNUAL ADJUSTMENT OF SEWER
CONNECTION FEES BASED ON CHANGES IN THE ENGINEERING
NEWS RECORD CONSTRUCTION COST INDEX
DATE: FEBRUARY 12, 2013
RECOMMENDATION:
It is recommended the City Council adopt the attached Resolution· approving the annual
adjustment to the sewer connection fees based on changes in the Engineering News
Re.c.ord (ENR) Construction Cost Index (CCI).
IMPACT ON FINANCIAL AND PERSONNEL RESOURCES:
The. adopti0n of the attached Resolution will increase the sewer connection fees
charged for new development prdjects in 2013. The revenue generated from 'fhis
increase is depender:it on the amount of new development in the community during the
coming year. ·
No or minimal future staff time is projected.
BACKGROUND:
Ordinance 528 C.S. amended Section 13.1.2.1:90 of the Arroyo Grande Municipal Code
to provide that for each connection of a building to a public sewer, a connection fee will
be charged and that the amount of the fee shall be set by resolution. Resolution No.
3567 set sewer connection fees and requires that the sewer connection fee be adjusted
each year in accordance with the percentage increase based on changes in the. annual
average Engineering News Record Construction Cost Index.
ANALYSIS OF ISSUES:
The calculation shown below provides documentation that a 2.62% increase in the ENR
CCI warrants an adjustment in sewer connection fees.
Overall Index
ENR Annual Average for 2012.
ENR Annual Average for 2011
Change
Percent Increase
9,308
.9.070
238
238/9,070 = 2.62%
Item 8.b. - Page 1
GITY COUNCIL
SEWER CONNECTION FEE ADJUSTMENT
FEBRUARY 12, 2013
PAGE2
Attached t0 this report is a Resolution to adjust the sewer connection fees and which
delineates the .service provided .by the City, the current fee charged for that service, the
CCI, and the r:ecommende-d adjusted fee.
ALTERNATIVES:
The following alternatives are provided for City Council consideration:
• Adopt the Resolution adjusting sewer connection fees;
• Do not adopt the Resolution and postpone adjustment until July 2013;
• Provide direction to staff.
ADVANTAGES:
By approving the recommended fee adjustments, the City will be able to maximize
revenue by recovering the es.tir:nated co~st of providing tbe service.
DISADVANTAGES:
The only disadvantage identified in relation to this recommendation is an increased cost
t0 new development.
ENVIRONMENTAL REVIEW:
No environmental review is required for this item.
PUBLIC NOTIFICATION AND COMMENTS:
The Agenda WC3S posted in front of City Hall on Thursday, February 7, 2013. The
Agenda and report were posted on th.e City's website on Friday, February 8, 2013. No
public comments were r:ec~ived.
Item 8.b. - Page 2
RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF ARROYO GRANDE ADJUSTING SEWER
CONNECTION FEES BY THE CHANGE IN THE
ENGINEERING NEWS RECORD CONSTRUCTION COST
INDEX
WHEREAS, the, City Counc::il ad0pted Ordinance. 528 C.S. amer:ldihg Section 13.12.190
ofthe Municipal Ce.de regarding sewer connection fees; and
WHEREAS,. pursuant to Sectien 13. 12.190 the City Council may by resoluti0n establish
the amount of the s . .ewer connection fees, pursuant to the above referenced Ordinance,;
and
WHEREAS, Resolutio.n 3567 authorizes an annual adjustment in the sewer connection
fees based on the changes in the annual average Engineering News Record
Construction Cost Index.
NOW, THEREFORE BE IT RESOLVED that the City Council of the City of Arroyo
Grande hereby adopts the sewer connection fees set forth in Exhibit "A" attached hereto
and incorporated herein by this reference as though set forth in full. In accordance with
Government Code Section 66017,. this Resolution shall take effect sixty (60) days after
its adoption.
On motion of Council Member , seconded by Council Member
_____ , an·d on the following roll call vote., to wit:
AYES:
NOES·:
ABSENTi
the foregoing Resolution was passed and adopted this_ day of February, 2013.
Item 8.b. - Page 3
.RESOLUTION NO.
PAGE2
TONY FERRARA, MAYOR
ATTEST:
KELLY WETMORE, CITY CLERK
APPROVED AS TO CONTENT:
STEVEN ADAMS, CITY MANAGER
APPROVED AS TO FORM:
TfMOTHY J. CARMEL, CITY ATTORNEY
Item 8.b. - Page 4
EXHIBIT A
SEWER CONNECTION FEES
EFFECTIVE 4/~5/13
For each connection of a building sewer to a public sewer, a c0nnection fee shall be collected by the
City before the permit for the connection work is issued. The amount of the fee collected is as follows:
Connection Fee
20.09 20.10 2011 .2012
ENR Index 8310 8570 88.02 9070
Residential -per dwelling unit
Single Family $ 972 $ 1,002 $ 1,029 $ 1,056
Multifamily (a) 720 743 763 783
Trailer Park/Mobile Home 797 822 844 866
Non-Residential -per water meter size (b)
5/8 inch $ 972 $ 1,002 $ 1,029 $ 1,056
3/4 inch 1,456 1,502 1,543 1,583
1 inch 2,431 2,507 2,575 2,642
1 1/2 inch 4,862 5,014 5,150 5,285
2 inch 7,780 8,023 8,240 8,456
3 inch 14,587 15,043 15,451 15,856
4 inch 24,312 25,073 25,752 26,427
6inch 48,623 .50, 144 51,503 52,852
8 inch 97,246 to0,289 103,007 105,706
10 .inch 145,869 1:50,433 154,51'0 158,558
12inch 213,941 220,635 226,614 232,551
(a) Multifamily includes duplex, triplex, apartments, and condominiums
(b) For meter sizes larger than shown, conne.ction fee determined based
on the ratio of the maximum safe operating capacity of the meter to
that of a 5/8 inch meter.
The connection fees shall be increased each year with the annual percentage increase of the
annual average ENR Construction Cost Index as established in the Engineering News Record
publication.
Adjustment Formula:
Adjusted Fee= (Current Fee) x (Current Year ENR index) I (Prior Year ENR index)
2013
9308
$ 1,084
804
889
$ 1,084
1,625
2,712
5,423
8,677
16,271
27, 119
54,237
108,475
1,62,712
238,644
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