City Council Agenda
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Memo to: |
Manteca City Council |
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From: |
Kevin Jorgensen II, Director of Engineering/City Engineer |
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Prepared by: |
Somporn Boonsalat, Deputy Director of Engineering |
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Date: |
February 4, 2025 |
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Subject: |
Hold a Public Hearing, Amend Sections 13.04.010 and 13.04.020 of the Manteca Municipal Code, Adopt the Water Capacity Fee Nexus Study, and Adopt Water Capacity Fee, Water Meter Installation Fee, and Interim Residential New Connection Fee |
Recommendation:
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Conduct a public hearing and adopt a resolution approving the Water Capacity Fee Nexus Study; setting charges for the water capacity fee, updated water meter installation fee, and interim residential new connection fee; and authorizing the City Manager or designee to take all appropriate actions necessary to carry out the purpose and intent of the resolution; Waive the first reading by substitution of the title and introduce an Ordinance of the City Council of the City of Manteca, State of California, Repealing and Replacing Chapters 13.04.010 Meters Required And 13.04.020 Rules And Regulations.
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Background:
On March 5, 2024, the City of Manteca (City) adopted the 2024 Final Water Master Plan (2024 WMP). With completion of the 2024 WMP, staff now has an accurate accounting of the funding needed for the maintenance and operation of existing assets and development of future assets.
The City worked closely with its consultants at Raftelis to develop the updated Water Capacity Nexus Study (Attachment 3). The Nexus Study calculated a Water Capacity Fee that does not exceed the reasonable cost of existing and future public water facilities that are of proportionate benefit to new development.
City staff met with representation for the Building Industry Association of the Greater Valley (BIA) and provided the Nexus Study for review. The BIA provided staff with some minor questions/comments that were subsequently addressed, and the BIA responded having no further comments and supportive of the Nexus Study.
Sections 13.04.010 and 13.04.020 of the Manteca Municipal Code set forth water capacity and water meter installation fees to be paid by those requesting a new or expanded connection to the City’s water system. Current fees include:
• Surface Water Debt Service Fee
• Surface Water Capital Fee
• Meter Installation Fee
Water Capacity Fee
The City proposes to replace the Surface Water Debt Service Fee and Surface Water Capital Fee with one, comprehensive, Citywide Water Capacity Fee. The new Water Capacity Fee will include the same purposes of the prior fees. Below are the proposed new Water Capacity Fee amounts:
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Meter Size |
Current Fee |
Proposed Fee |
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3/4" |
$5,324.00 |
$5,167.79 |
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1" |
$9,101.00 |
$8,612.98 |
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1 1/2" |
$18,143.00 |
$17,225.96 |
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2" |
$29,038.00 |
$27,561.54 |
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3" |
$54,482.00 |
$60,290.87 |
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4" |
$90,819.00 |
$108,523.57 |
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6" |
$181,577.00 |
$275,615.43 |
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8" |
$290,556.00 |
$482,327.00 |
Meter Installation Fee
The Meter Installation fee is set to recover the direct costs associated with the physical installation of the water meter including labor, equipment time, and the purchase of the meter itself. The Nexus Study calculated a Meter Installation Fee that does not exceed the City’s actual reasonable costs of installing meters, at the various meter sizes.
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Meter Size |
Current Fee |
Proposed Fee |
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3/4" |
$404.00 |
$870.26 |
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1" |
$571.00 |
$1,006.36 |
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1 1/2" |
$989.00 |
$1,648.47 |
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2" |
$1,150.00 |
$2,062.87 |
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3" |
$5,443.00 |
$10,441.80 |
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4" |
$6,597.00 |
$12,197.55 |
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6" |
$18,663.00 |
$17,925.64 |
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8" |
$24,066.00 |
$24,956.85 |
Exemptions
The following water connection types shall be exempt from paying the Water Capacity Fee but shall pay the Water Meter Installation Fee and all other applicable fees.
• Accessory dwelling units.
• Interim Residential New Connections. Residential dwelling units existing and lawfully occupied as of March 1, 2024, within the city limits, utilizing a well system, that have never been connected to the City’s water system.
Interim Residential New Connections shall pay the current Meter Installation Fee and a $500 fee to cover the City’s administrative costs related to their connection to the City’s water system, summarized below:
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Meter Size |
Meter Installation Fee |
Administration Fee |
Proposed Fee |
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3/4" |
$870.26 |
$500.00 |
$1,370.26 |
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1" |
$1,006.36 |
$500.00 |
$1,506.36 |
Fiscal Impact:
There is no General Fund impact associated with this item.
If approved, the proposed revised fees would become effective on May 1, 2025 or sixty days (60) after the adoption of the resolution, whichever occurs later.
The future fiscal impacts to the Water Capacity Fee Fund (Fund 690), where Water Capacity and Water Meter Installation Fees are recorded, will depend on the pace and magnitude of future development activities.
Documents Attached:
1. Attachment 1 - Public Hearing Notice
2. Attachment 2 - Resolution
3. Attachment 3 - Exhibit “A” to Resolution - Water Capacity Fee Nexus Study
4. Attachment 4 - Exhibit “B” to Resolution - Water Capacity, Water Meter Installation, Interim Residential New Connection Fee
5. Attachment 5 - Ordinance
6. Attachment 6 - Ordinance Redline
7. Attachment 7 - Power Point Presentation