Livermore To End Fee ‘Subsidies’

Livermore staff will recommend ending what they reference as “subsidies” and restore the city’s wastewater connection and storm drainage fees. Ending the subsidies — in place since Jan. 7, 2011 — would effectively increase the wastewater connection fee by $634 from $5,576 to $6,210 per single family house and increase the storm drainage fee by 31 percent from $0.32 to $0.42 per square foot of impervious surface. To present the proposal, the city is inviting members of the development community to attend an outreach meeting on Nov. 1, 2016, from 4-5 p.m. in the Cabernet Room at City Hall, 1052 S. Livermore Ave. in Livermore. The City Council is scheduled to hold a public hearing and vote on the fee increase proposal on Nov. 14, 2016. Click here to download and view the city’s notice. For questions or comments, call or email Livermore Senior Civil Engineer Joel Waxdeck at jhwaxdeck@cityoflivermore.net or 925-960-4521.

BACKGROUND: According to details provided in an email from Livermore Senior Engineer Joel Waxdeck: The 2010 Fee Study was approved by the City Council on Nov. 8, 2010. The study recommended adjustments to the Wastewater, Water, and Storm Drain Connection Fees. The report recommended a decrease in the Water Connection Fee and the reduced Water Connection Fee was adopted at the November 8, 2010 City Council Meeting. The reduced Water Connection Fee was due to major projects being constructed under budget. The report recommended increases for both the Wastewater and Storm Drainage Connection Fees. Reasons for the increased Wastewater Connection Fee included final debt allocations for the Livermore Amador Valley Water Management Agency (LAVWMA) wastewater disposal pipeline projects, incorporating recommendations from the Water Reclamation Plant Electrical Master Plan, and incorporating potential Class A biosolids treatment requirements. The Storm Drainage Connection Fee increase was based on the cost for upsizing creek culverts under City streets. Back in 2010 the economy was in a major recession. The development community opposed these increases because it would act as a further disincentive to development. Staff proposed subsidies that were approved by City Council. The Wastewater and Storm Drainage Connection Fees charged to the developers was kept at the then current rates and the additional fee was paid for from Sewer Replacement Fees and General Fund respectively. Ending the subsidies would increase total development fees for a single family residential home by around 1%. Total development fees for other commercial, office, warehouse and restaurant would increase from around 1 to 5%. Attachment 3 provides details regarding existing and proposed connection fees for different types of developments. Click here to view details regarding existing and proposed connection fees for different types of developments.

The table below summarizes the subsidies that have been made to date: Sewer Subsidy Storm Subsidy From Fund 239 From Fund 001 FY 10/11* $21,722 $3,080 FY 11/12 $150,306 $112,853 FY 12/13 $320,668 $65,712 FY 13/14 $129,231 $63,848 FY 14/15 $254,377 $247,650 FY 15/16 $506,973 $259,384 FY 16/17** $61,005 $4,894 Total $1,444,282 $757,421 * January 7, 2011 through June 30, 2011 ** July through September 2016