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pLiASANTONe CITY COUNCIL AGENDA REPORT 24 July 21, 2015 City Manager TITLE: CONSIDER A RESOLUTION APPROVING THE RECYCLED WATER CONNECTION FEE SUMMARY The City hired HDR Engineering, Inc. (HDR) to develop a recycled water connection fee to be charged to new recycled water customers. The proposed fee is cost based and in compliance with generally accepted methods for establishing connection fees. By establishing a cost -based recycled water connection fee, the City will charge new customers this fee and have "growth pay for growth" and existing utility customers will be sheltered from the financial impacts of growth. Connection fees provide the means of balancing the cost requirements for new utility infrastructure between exiting customers and new customers. The following table presents the proposed recycled water connection fees which if approved, would take effect on August 1, 2015: Meter Meter Size Equivalent Recycled Water Connection Fee 5/8" 1.00 $14,889 3/4" 1.50 22,334 1" 2.50 37,227 1 -1/2" (Displacement Type) 5.00 74,447 1 -1/2" (OMNI C2) 16.00 238,230 1 -1/2" (OMNI T2)" 16.00 238,230 2" (Displacement Type) 8.00 119,115 2" (OMNI C2) 16.00 238,230 2" (OMNI T2) (1) 20.00 297,788 RECOMMENDATION Staff recommends the City Council adopt by resolution the recycled water connection fee to be effective August 1, 2015 and annually starting January 1, 2017, adjust these charges by the change in the Engineering News Record (ENR) Construction Cost Index. FINANCIAL STATEMENT The proposed recycled water fee if approved by the City Council will be borne by new recycled water customers. By establishing a cost -based recycled water connection fee, the City will charge new recycled water customers this fee and have "growth pay for growth" and existing utility customers will be sheltered from the financial impacts of growth.