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ITEM: |
CONSENT CALENDAR |
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3. |
CONSIDER ADOPTION OF RESOLUTION NO. 2025-06 - ANNUAL UPDATE TO RULE
24, TABLE 3, CAPACITY FEE HISTORY |
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Meeting Date: |
June 16, 2025 |
Budgeted: |
N/A |
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From: |
David J. Stoldt |
Program/ |
N/A |
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General Manager |
Line Item No.: |
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Prepared By: |
Gabriela Bravo |
Cost
Estimate: |
N/A |
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General Counsel Review: N/A |
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Committee Recommendation: The Finance and Administration Committee considered this item on June 9, 2025, and recommended approval. |
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CEQA Compliance: This action does not constitute a project as defined by the
California Environmental Quality Act Guidelines Section 15378. |
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SUMMARY: District Rule 24 requires that the Capacity Fee History Table be updated annually by Resolution of the Board to reflect the new fiscal year’s Capacity Fee. Resolution No. 2025-06 (Exhibit 3-A) updates Rule 24, Table 3: Capacity Fee History by 1.3 percent based on changes in the CPI. The Capacity Fee History was last updated on June 17, 2024.
RECOMMENDATION: The Finance and Administration Committee recommends that the board adopt Resolution No. 2025-06 to update Rule 24, Table 3, Capacity Fee History.
BACKGROUND: The Capacity Fee is a Water Permit charge when there is an increase in Water Use Capacity[1]. It is a fee retained by the District in consideration of, and as reimbursement for the costs and expenses incurred by the District in planning for, acquiring, reserving, and maintaining capacity in the water distribution facilities existing or to be constructed within the District. The Capacity Fee is authorized by the District’s enabling legislation (West’s Water Code Appendix §118-308) and by California Government Code §66013(a) and was adopted and implemented by MPWMD Regulation II and validated by Monterey County Superior Court in Case No. M 15851. The term “Capacity Fee” has the same meaning as the term “Connection Charge.”
Affordable Housing has exemptions from the Capacity Fee: Deed restricted Moderate Income Housing is exempt from 50 percent of the Capacity Fee, and Low Income Housing is exempt from 100 percent of the Capacity Fee.
EXHIBIT
3-A Draft Resolution No. 2025-06 and Table 3: Capacity Fee History
U:\staff\Boardpacket\2025\061625\03\Item-3.docx
[1] “Water Use Capacity” means the maximum potential water use which theoretically may occur, based on average water use data for similar structures and uses in the Monterey Peninsula region, as shown by projected water
use tables set forth in Rule 24.