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HomeMy WebLinkAbout1992-09-01; Municipal Water District; 184; Setting the Major Facility ChargeCARLSBAD l’“‘NICIPAL WATER DISTRICT . -IGENDA BILL j. AB#’ 18’1 TITLE: SETTING THE MAJOR MTG. 9/l/92 FACILITY CHARGE DEPT CMWD . CITY MGR%?i& RECOMMENDED ACTION: Hold a public hearing and adopt Resolution No. 8’* setting the Major Facilities Charge. ITEM EXPLANATION: The Potable Water Master Plan outlines the water facilities needed to be constructed to serve the ultimate population in the District and the major facilities charge (connection fee) to be used to pay for those required improvements. In order to provide adequate funding for these capital improvements, the major facilities charge (MFC) needs to be adjusted from time to time due to inflation. The Master Plan recommends increasing the charge by the annual increase in the Engineering News Record Construction Cost Index. The District has not increased the MFC since 1990. Thus, staff is recommending that the MFC be increased by $200 per EDU (equivalent dwelling unit) to reflect the increase in the index over the pst two years. This results in a new charge of $2,400 per EDU which is an approximate 9% increase over the present charge of $2,200 per EDU. As noted in the Master Plan, the construction cost for the water facilities through build out are estimated at $52,500,000. This cost reflects the cost of capital improvements due to future population increases and does not include costs for replacement. A fixed asset replacement fund is set up for that share of the project. FISCAL IMPACT: This increase in the major facilities charge will offset increases in the construction costs of the planned water facilities. Based on current growth estimates, major facilities charges for 1992 - ‘93 are estimated at $300,000. The proposed increase would provide an additional $27,000 in revenue to the capital funds of the District for fiscal year 1992 - ‘93. 8 However, within the next 3 to 5 years there will be a major shortfall in the capital program. 5 This is due to the need to fund some major projects, one being the lining and covering of the open Maerkle Reservoir. This proposed increase in the Major Facilities charge does E help offset some of the expected shortfall. It does not, however, fix the facilities funding % problem and staff will be presenting further revisions and options in the near future. EXHIBITS: Resolution No. . 810 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 RESOLUTION NO. 810 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE CARLSBAD MUNICIPAL WATER DISTRICT SETTING THE MAJOR FACILITY CHARGE WHEREAS, the Board of Directors of the Carlsbad Municipal Water District has the authority to establish a Major Facilities Charge in accordance with Water Code, Article 1, Section 71616; and WHEREAS, from time to time said fees are reviewed and evaluated to maintain an adequate Major Facilities Charge structure recovering costs for the District’s Capital Improvement Program; and WHEREAS, the Board of Directors has determined the cost of providing these Capital Improvements; and WHEREAS, the Board of Directors has held the necessary public hearing and allowed for public comment on the establishment of said fee. NOW, THEREFORE, BE IT RESOLVED by the Board of Directors of the Carlsbad Municipal Water District of Carlsbad, California that the Major Facilities Charge be set at $2,400 per EDU and that this revised fee become effective immediately. AYES: Board Members Lewis, Larson, Stanton, Nygaard NOES: None ABSENT: Board Member Aletha L. Rautenkranz, Secretary Carlsbad Journal Decreed A Legal Newspaper by the Superior Court of San Diego County Mail all correspondence regarding public notice advertising to W.C.C.N. Inc. P.O. Box 230878, Encinitas, CA 92023-0878 (619) 753-6543 Proof of Publication STATE OF CALIFORNIA, ss. COUNTY OF SAN DIEGO, I am a citizen of the United States and a resident of the county aforesaid; I am over the age of eighteen years, and not a party to or interested in the above entitled matter. I am principal clerk of the printer of the Carlsbad Journal, a newspaper of general circulation, published weekly in theCity of Carlsbad, County of San Diego, State of California, and which newspaper is published for the dissemination of loca1 news and intelligence of a genera1 character, and which newspaper at all times herein mentioned had and still has a bona fide subscription list of paying subscribers, and which newspaper has been established, printed and published at regular intervals in the said City of Oceanside, County of San Diego, State of California, for a period exceeding one year next preceding the date of publication of the NOTICEOF PUBLICHEARING . SWI’I’ING WOR FACtLlTlES CHARGE .- notice hereinafter referred to; and that the notice of which the annexed is a printed copy, has been published in each regular and entire issue of said newspaper and not in any supplement thereof on the follow- ing dates, to-wit: NOTICE IS HEREBY GWEN th~l the Sad ol Directon of the CJrl- sbsd YunlelpJl Water Dl~trlct rlll hold . publlc heJrlng Jt the City Council Chmben. 1200 CJrlJbJd vlll~a~ Drk C~?lrb~d. C~lilbml~. Jt8zO6P.L.onTuedJy.Septeabe~ 1.191. to cowlder JJ hC~JSS In the major f~cllllles ChJrgJ tconnec- tlonfeeltokUJedtooJYfJ+?I) quirJd CJPitJl ImproY&ilentJ The Dlatrict Is recommendln# UJI lhe fee ba lneresscd Tom $2.2UO to $4140perequlwlenldwelllngunlt. The propoJed ne” ChJS’@? lJ Jn JppfoxlmJte 98 IncrrJze owr the prercnl chsrge. If you bJve my queJtlonJ regard- Ina this mmtter. pleJse CJII Bob Cw Jtea. Distrkt EIUlncCr. Jt the Carl- sbJd YunlclpJl WJter Dlstdet. *pb ssar.. I#. If m, rlullenm the lmreuc In Lbcm4k~hCllitkChJr#~(YPC)In cyrc roll rnJl, bJ llrnlted to nlrlng ‘only those iuuea ralaed by you or Mmeone ek Jt the publlc heJrln# dmrlkd In this notice. or In writ- ten COmJJpoJdJnJJ delfvcred to the City of CJrlJbJd City Clerb’r Offlee it. or pilor to. the public hoJrlw A$lrl;CJrlJbsd Yunlclppl WJ- CAIUSBAD YUNICIPAL WATEH DISl’ItItX BOARD OF DNtECTORS CJ SIti Auylf So. lo&L - August '20 1992 x-- x-- x-- 19- I certify under penalty of perjury that the foregoing is true and correct. Executed at Carlsbad, County of San Diego, State of California on the 20th day of August, 1992 1’ ’ ’ Clerk of the Printer NOTICE OF PUBLIC HEARING SETTING MAJOR FACILITIES CHARGE NOTICE IS HEREBY GIVEN that the Board of Directors of the Carlsbad Municipal Water District will hold a public hearing at the City Council Chambers, 1200 Carlsbad Village Drive, Carlsbad, California, at 6:00 p.m., on Tuesday, September 1, 1992, to consider an increase in the major facilities charge (connection fee) to be used to pay for required capital improvements. The District is recommending that the fee be increased from $2,200 to $2,400 per equivalent dwelling unit. The proposed new charge is an approximate 9% increase over the present charge. If you have any questions regarding this matter, please call Bob Coates, District Engineer, at the Carlsbad Municipal Water District, 438-3367, ext. 124. If you challenge the increase in the major facilities charge (MFC) in court, you may be limited to raising only those issues raised by you or someone else at the public hearing described in this notice, or in written correspondence delivered to the City of Carlsbad City Clerk's Office at, or prior to, the public hearing. APPLICANT: Carlsbad Municipal Water District PUBLISH: August 20, 1992 CARLSBAD MUNICIPAL WATER DISTRICT BOARD OF DIRECTORS SETTING THE MAJOR DEPT. HD. FACILITY CHARGE CITY ATTY CITY MGR= RECOMMENDED ACTION: Hold a public hearing and adopt Resolution No. setting the Major Facilities Charge. ITEM EXPLANATION: The Potable Water Master Plan outlines the water facilities needed to be constructed to serve the ultimate population in the District and the major facilities charge (connection fee) to be used to pay for those required improvements. In order to provide adequate funding for these capital improvements, the major facilities charge (MFC) needs to be adjusted from time to time due to inflation. The Master Plan recommends increasing the charge by the annual increase in the Engineering News Record Construction Cost Index. The District has not increased the MFC since 1990. Thus, staff is recommending that the MFC be increased by $200 per EDU (equivalent dwelling unit) to reflect the increase in the index over the pst two years. This results in a new charge of $2,400 per EDU which is an approximate 9% increase over the present charge of $2,200 per EDU. As noted in the Master Plan, the construction cost for the water facilities through build out are estimated at $52,500,000. This cost reflects the cost of capital improvements due to future population increases and does not include costs for replacement. A fixed asset replacement fund is set up for that share of the project. FISCAL IMPACT: This increase in the major facilities charge will offset increases in the construction costs of the planned water facilities. Based on current growth estimates, major facilities charges for 1992 - ‘93 are estimated at $300,000. The proposed increase would provide an additional $27,000 in revenue to the capital funds of the District for fiscal year 1992 - ‘93. However, within the next 3 to 5 years there will be a major shortfall in the capital program. This is due to the need to fund some major projects, one being the lining and covering of the open Maerkle Reservoir. This proposed increase in the Major Facilities charge does help offset some of the expected shortfall. It does not, however, fix the facilities funding problem and staff will be presenting further revisions and options in the near future. EXHIBITS: 1. Resolution No.