The District Board of Directors met on Tuesday, July 18, 2023, at 4:30 PM.
The Board of Directors heard an update from Kimley-Horn Engineering on the Impact Fee Study Report and the determination of the Maximum Assessable Impact Fee amounts for water and wastewater. The Impact Fee implementations schedule began in January 2023 and is done through a transparent process, along with input from the Capital Improvement Advisory Committee (CIAC). Impact Fees help fund infrastructure in a way that is fair but ensures that growth pays for itself. Impact Fees help the District manage growth in a more planned and sustainable manner and contribute to the long-term financial stability of the District.
Kimley-Horn provided a brief recap of what Impact Fees are, and what is legally appropriate to be funded using Impact Fees. The presentation also revisited the Land Use Assumptions and Impact Fee Capital Improvements Plan that describes the different service areas and necessary infrastructure needed to support growth coming onto the system. They provided the Max assessable Impact Fees for water and wastewater, described the methodology for calculating the fees, and gave a comparison to Impact Fees of similar utilities in the state.
JCSUD staff provided an evaluation of the District’s existing system development fees versus the maximum assessable Impact Fee, showcasing the system development fee’s inability to fund the necessary infrastructure needed to keep up with growth. Staff also demonstrated a utility comparison of Impact Fees, demonstrating that JCSUD Impact Fees are comparable with current market rates.
The CIAC will be meeting in July to review the Impact Fee Study and Max Assessable Impact Fees. Another presentation will be given by Kimley-Horn during the August Board of Directors meeting. The actual Impact Fee amounts will be considered, and may be established, by the JCSUD Board via resolution at the September Board meeting.
The Board of Directors voted to award the construction contract for the Plant 3 ground storage water tank project to TTE, LLC. This project consists of the removal of a 500,000-gallon welded steel ground storage tank, the construction of a 300,000-gallon steel ground storage tank, yard piping, a metering station with control valve, and electrical improvements. The District received one bid from TTE, LLC for $999,48.00. This project has a contract completion time of 160 days. Demolition of the tank will be scheduled for the fall.