Memo Regarding Recommendation to Approve Allocation of Fee Credits for East Bay Municipal Utility District System Capacity Charges (SCC) and Wastewater Capacity Fees (WCF) at Alameda Point for City Facilities, Existing Tenants and Upcoming, July 18, 2017
1. New Water Infrastructure Phasing Plan
2. SCC Credit and Payment Policy
3. WCF Credit and Payment Policy
4. Recommended Allocation of SCC & WCF Credits
On June 6, 2017, the City Council approved a Water Infrastructure Agreement for Alameda Point with East Bay Municipal Utility District (EBMUD), which would implement New Water Infrastructure in the Reuse Area consistent with EBMUD regulations and specifications. The transition to the New Water Infrastructure in the Reuse Area will be implemented in phases as properties are sold to private owners and the sales proceeds contribute to the design and construction of the New Water Infrastructure. Exhibit 1 depicts the Phasing Plan for New Water Infrastructure in the Reuse Area.
As part of the New Water Infrastructure work, the City is required to connect all domestic and fire services to parcels fronting streets that contain the new EBMUD water system to the new EBMUD water main and facilitate owners and tenants becoming EBMUD customers in accordance with EBMUD’s regulations. At the time of sale or at the time the New Water Infrastructure are implemented (whichever is earlier) all of the tenants and owners who front or will front the New Water Infrastructure must pay all applicable fees, including the System Capacity Charges (SCC) and the Wastewater Capacity Fees (WCF), which are typically due when a business obtains water service before they open their business.
That said, EBMUD has agreed to give the City a credit for the future elimination of the three master meters of $19.5 million for SCC and $7 million for WCF at the time the Water Infrastructure Agreement is executed, which occurred on June 14, 2017, instead of at the later date when the master meters are actually eliminated. This provides a greater credit amount to the City because the credits are based on a 10-year historic average of water use, which is higher now than when the master meters will actually be eliminated, as water usage will gradually decrease over time as water improvements are constructed and there is lower usage of water flowing through the Navy’s former master meters. These credits could be used to offset the SCC and WCF for City facilities, existing and future tenants and transactions in the Reuse Area and new projects in the Development Area at the City Council’s discretion. Exhibits 2 and 3 describe how the SCC and WCF credits and payments are implemented as outlined in Water Infrastructure Agreement.