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16 - Adopt Ord No. 97 Establishing Plumbing Fixture FeesProtecting our community's health and the environment by providing solid waste and sewer collection services. www.cmsdca.gov Costa Mesa Sanitary District ….an Independent Special District Memorandum T o: Board of Directors Via: Scott Carroll, General Manager From: Anna Sanchez, Administrative Service Manager Date: May 23, 2013 Subjec t: Adopt Ordinance No. 97 Adding Section 6.04.085 to the Operations Code Establishing Plumbing Fixture Fee Credits Summary The District established fixture fees in 1970 and adopted new fixture fees in 2010. During this period, staff has been applying credits towards the fixture fees due from permit applicants for remodeled structures, similar to Orange County Sanitation District’s procedures for remodeled structures. It has come to staff’s attention that the authority to provide those credits was not set forth in the Operations Code. Application of the fixture fee credits should be uniformly applied and codified by ordinance. Staff Recommendation That the Board of Directors adopt Ordinance No. 97 adding Section 6.040.085 to the Operations Code regard ing permit charges . Analysis Operations Code Section 6.04.070 identifies the permit charges applied before any connection permit is issued. In calculating the permit charges, staff has routinely applied fixture credits for any remodeled structures, similar to what Orange County Sanitation District’s procedures are for remodeled structures. The premise for applying fixture fee credits is the assumption the owner of the existing structure has already paid the capacity charge for the existing structure connected to the District’s system. For remodeled structures, fees would be applied only to the new construction or alteration that is made to change or increase the capacity to the District’s system. ITEM NO. 16 Board of Directors May 23, 2013 Page 2 of 2 Additionally, in reviewing the permit office procedures, staff finds it prudent to require the permit applicant to provide proof of previous existing structures on the property to be developed. Proof of previous existing structures and the number of plumbing fixtures that were demolished would validate the amount of fixture fee credits applicable to the applicant’s property that would document the propriety of providing the credits. Without this information, the application of fixture fee credits would be at the discretion of District staff and might not be evenly applied. Strategic Plan Element & Goal This item will achieve the objective and strategy of CMSD’s Str ategic Plan Element 5 .0, Administrative Management , which states: Objective: “To create, maintain and implement policies and procedures to ensure so und management of the District .” Strategy: “We will conduct periodic reviews, refine and implement policies and procedures, and assure the General Manager has the direction and tools necessary for successful District Operations .” Legal Review District Counsel concurs that the adoption of the ordinance will both provide clear legal authority for providing credits and will ensure that credits are applied in a fair and equitable manner. Financial Review There is no financial impact to the District for adopting Ordinance No. 97 . After adopting the ordinance, proof of publication in the local newspaper will cost $350.00. Committee Recommendation Not applicable. Public Notice Process Copies of this report are on file and will be included with the entire agenda packet for the May 23 , 201 3 regular Board of Directors meeting at District Headquarters and on District’s website. Alternative Actions 1. Do not approv e Ordinance No. 97 Attachment A: Ordinance No. 97 ITEM NO. 16 ORDINANCE NO. 97 AN ORDINANCE OF THE BOARD OF DIRECTORS OF THE COSTA MESA SANITARY DISTRICT ESTABLISHING PLUMBING FIXTURE FEE CREDITS WHEREAS , the District has long charged for fixture fees, those being set dollar amounts charged per plumbing fixture i n a proposed development ; and WHEREAS , the Board has define d fixture fees as capacity charges for public facilities in existence at the time a charge is i mposed or charges for new public facilities to be acquired or constructed in the future that are of proportional benefit to the person or property being charged , including capacity and other entitlements ; and WHEREAS, the District has determined fixture fees should only be ap plied to new construction or alteration of existing structures that is made to increase the burden on the capacity of the District’s system or that add s other new burdens to the system ; and WHEREAS , the Board does hereby desire to establish plumbing fixture fee credit for existing structures and only apply fixture fees to the new construction or alteration of existing structures that increase s the burden on capacity to the District’s system; NOW, THEREFORE , the Board of Directors of the Costa Mesa Sanitary District does hereby ORDAIN as follows: Section 1. That Section 6.04.085 is hereby added to the Costa Mesa Sanitary District Operations Code as follows : “6.04.085 Credits . In the case of existing structures connected to the District’s system facilities, where new construction or alteration is made to change or increase the c apacity, the fixture fees shall be calculated and paid to the District on the new use and in the amounts as set forth in Section 6.04.070, less a credit amount for demolished fixtures. Fee credit amounts shall be uniformly calculated and shall only be app lied when proof of the existing structure and the number of plumbing fixtures demolished is provided to the District .” Section 2. Should any part, clause or section of this Ordinance be declared by any Court to competent jurisdiction to be invalid, the r emaining provisions of this Ordinance shall nevertheless be and remain in full force and effect and the Board of Ordinance No. 97 Directors of the Costa Mesa Sanitary District of Orange County, California, hereby declares that each and every section, clause, provision or p art of this Ordinance would have been adopted and made a part of this Ordinance without the adoption of any portion thereof and that the invalidity of any part or provision hereof shall not in any way affect the validity or enforcement of the remaining pro visions of this Ordinance that may stand on their own. Section 3. Pur suant to Health and Safety Code Sections 6490 and 6491.3, the Clerk shall cause this ordinance or a summary thereof to be published in a newspaper of general circulation printed and pub lished in the District according to law. PASSED and ADOPTED this ______ day of _____________, 2013 Secretary President Ordinance No. 97 STATE OF CALIFORNIA ) COUNTY OF ORANGE ) SS CITY OF COSTA MESA ) I, S COTT CARROLL, Clerk of the Costa Mesa Sanitary District, hereby certify that the above and foregoing Ordinance No. __ was duly and regularly passed and adopted by said Board of Directors at a regular meeting thereof, held on the 23 rd day of May , 2013 b y the following votes: AYES: NOES: ABSENT: ABSTAIN: IN WITNESS WHEREOF, I have hereunto set my hand and affixed the seal of the Costa Mesa Sanitary District, this 23 rd day of Ma y , 2013. Clerk of the Costa Mesa Sanitary Distri ct