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.
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