Oakley and Bethel Island residents should be on alert tonight as the Ironhouse Sanitary District is set to discuss a potential fee increase of its Trunkline Capacity Fee and Plant Capacity Fee as the temporary discount is set to expire later this year.
Both fees were discounted back in Sept of 2011 where the Trunkline Capacity Fee was reduced from $854 to $640. Meanwhile, the Plant Capacity Fee was reduced from $4,442 to $3,331.50. If increased, both would have an impact on local economic development and construction as its essentially a “double fee” aimed at developers which they claim keeps rates lower for ratepayers.
In an email, Oakley Economic Development Coordinator Cecelia Nichols-Fritzler stated the following when asked about the increase.
“An increase in rates can have an affect on economic development. Regardless, the City will continue to aggressively pursue economic development and will continue to focus on business attraction, retention, and expansion,” stated Nochols-Fritzler.
Meanwhile, Oakley Building Official Brent Smith was kind enough to share with me Single Family Dwelling Permit Activity going back to 2001
- 2001 – 190 (5 Developers)
- 2002 – 223 (4 Developers)
- 2003 – 265 (7 Developers)
- 2004 – 209 (7 Developers)
- 2005 – 524 (9 Developers)
- 2006 – 608 (10 Developers)
- 2007 – 277 (10 Developers)
- 2008 – 165 (5 Developers)
- 2009 – 210 (6 Developers)
- 2010 – 167 (6 Developers)
- 2011 – 77 (3 Developers)
- 2012 – 150 (3 Developers)
- 2013 – 73 (3 Developers)
The numbers show that when the fee were reduced, permits began being pulled again. The economy is also helping, but the question that needs to be asked is with the hefty reserve, why increase any rates?
The other scenario that may play out is an overnight 200% increase, or will this be incremental? And of course, what will be the final numbers proposed?
If you go:
The meeting will begin at 7:00 p.m. and will be held at the Ironhouse Sanitary District Office, 450 Walnut Meadows Drive, Oakley, California.
NOTICE OF PUBLIC HEARING
IRONHOUSE SANITARY DISTRICT
TRUNKLINE AND PLANT CAPACITY FEE INCREASES
On Tuesday, May 7, 2013, the Ironhouse Sanitary District (District) Board of Directors will hold a public hearing to consider an adjustment in trunkline capacity and plant capacity fees. This public hearing is part of a regularly scheduled meeting of the Board. Oral or written presentations may be made during the hearing. The Board’s meeting will begin at 7:00 p.m. and will be held at the District’s offices at 450 Walnut Meadows Drive, Oakley, California 94561.
The amounts of the proposed adjustment, which may be changed at the meeting, are as follows:
1. A $.00 increase in the trunkline capacity fee, keeping the fee at its current temporary discounted rate (Resolution No. 11-07, adopted September 6, 2011, effective September 12, 2011) of $640.50 per equivalent dwelling unit (EDU) until the temporary fee discount expires (September 30, 2013 or 350 EDU’s, whichever occurs first), at which time the fee will revert back to September 2011 non-discounted rate of $854.00.
2. A $.00 increase in the plant capacity fee, keeping the fee at its current temporary discounted rate (Resolution No. 11-07, adopted September 6, 2011, effective September 12, 2011) of $3,331.50 per equivalent dwelling unit (EDU) until the temporary fee discount expires (September 30, 2013 or 350 EDU’s, whichever occurs first), at which time the fee will revert back to September 2011 non-discounted rate of $4,442.00.
The adjustments in the trunkline and plant capacity fees are the District’s annual increases/decreases in accordance with District Ordinances No. 21 and 02 to keep the fees in line with construction cost inflation for the San Francisco Bay Area. The adjustments are based on the 0% increase posted in the March 2013 edition of the Engineering News-Record’s index of construction costs in the San Francisco Bay Area.
The meeting will begin at 7:00 p.m. and will be held at the Ironhouse Sanitary District Office, 450 Walnut Meadows Drive, Oakley, California.
