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HomeMy WebLinkAboutAgenda Statement 1985/01/22 Item 9 COUNCIL AGENDA STATEMENT Item 9 Meeting Date 1/22/85 ITEM TITLE: Report concerning creation of a Sewerage Facility Participation Fee Resolution //9/02. Setting publ 'c hearing for February 26 , 1985 SUBMITTED BY: Director of Public Works/ City Engineer (4/5ths Vote: Yes No X ) REVIEWED BY: City Manage The practice of imposing a capacity or "join-the-club" fee upon new development is common in the San Diego County area. Chula Vista is one of the few agencies which does not impose such a fee. The Engineering Division has studied the feasibility of enacting a capacity fee appropriate to Chula Vista's needs. RECOMMENDATION: It is recommended that a draft ordinance be prepared for review by interested parties, and that the Council adopt a resolution directing that a public hearing be scheduled concurrent with consideration of the draft ordinance on February 26, 1985. BOARDS/COMMISSIONS RECOMINIENDATION: Not applicable. DISCUSSION: Chula Vista is one of very few agencies in the County which does not impose a charge against new construction for sewage treatment plant and/or trunk sewer capacity. Capacity in such facilities is characteristically provided at public expense and by intent is sufficient to accommodate growth. A sewerage facility participation fee (commonly called a capacity charge or join-the-club fee) is a means of permitting the citizens of an agency to be repaid for their investment in capacity to accommodate growth. It is a relatively simple means of equitably spreading the cost of sewerage facilities among all of the benefited users. The Engineering Division has evaluated the local costs of providing sewage capacity for community growth. The findings are set forth in the herewith submitted "Sewerage Facility Participation Fee Study." FISCAL IMPACT: Income from this fee, if adopted as recommended, will be dependent upon the rate at which new construction occurs. Based on past growth rates, income is lik •.etween $82,000 and $305,000 per year. WMI:nr/ WPC 1232E _ F_ eq << , f f;€if ,_ CaLfornia