ORDINANCE NO. 10

ORDINANCE OF THE BOARD OF DIRECTORS OF THE SUMMERLAND SANITARY DISTRICT REPEALING RESOLUTION NO. 2000-06 AND ESTABLISHING A NEW CAPITAL RECOVERY FEE

RECITALS

A. Resolution No. 2000-6 was adopted by the Board of Directors of the Summerland Sanitary District (“Board”) on December 14, 2000 amending the Capital Recovery Buy-in Fee and establishing a new fee.

B. Government Code sections 66012 through 66018 establishes the requirements for the adoption and administration of such fees and the Board intends to adopt a fee that fully complies with the current statutory requirements.

C. A public hearing has been held as required by Government Code section 66016 and competent evidence was presented demonstrating that the current Capital Recovery fee established by Resolution 2000-6 does not meet the estimated reasonable costs of providing the services for which the fee is charged.

D. Because the evidence shows that the estimated reasonable cost of providing the service is substantially higher than that established previously by Resolution 2000-6, the Board has determined that the new fee should be increased over a three year phased basis.

E. In the course of making the studies, the Board has determined that the use designations used in administering the current fees require clarification and re-definition.

BE IT ORDAINED by the Board of Directors of the Summerland Sanitary District as follows:

Section 1. The above recitals are adopted and incorporated by this reference. Resolution 2000-6 is repealed as of the effective date of this Ordinance.

Section 2. As used in this Ordinance, the Capital Recovery fee is based on a unit of measurement designated as “Equivalent Dwelling Unit” or “EDU”. An EDU is determined by the assumed daily flow, biochemical oxygen demand (BOD) and suspended solids (SS). It is expressed:

EDU = Daily Flow x [0.62 + BOD Concentration x (0.17) + SS Concentration x (0.22)] 250 175 175

Section 3. A single dwelling unit consists of any unit of one or more rooms having one or more plumbing fixtures suitable for residential dwelling by one or more persons living as a unit. The following use classifications set the number of Equivalent Dwelling Units per use:

Section 4. District records studied show that the cost for capital improvements to serve each EDU as established by Resolution 2000-6 was the sum of $6,740.00. The current evidence received by the Board of Directors shows that the appropriate cost of providing service for new connections should be the sum of $9,998.00 per EDU.

Section 5. As of the effective date of this Ordinance, all new service connection applicants shall pay a Capital Recovery fee in the amount of $6,740.00 multiplied by each EDU at the time of issuance of a “will serve letter” or connection to the Summerland Sanitary District’s sewer system, whichever first occurs. On the 18 month anniversary of the effective date of this Ordinance, the fee shall be increased to a fee of $8,369.00 per EDU and on the 36 month anniversary of the effective date of this Ordinance the fee shall be $9,998.00 per EDU.

Section 5a. Thereafter, beginning July 1, 2012, the Capital Recover Fee shall be annually adjusted based on the change in the Engineering Record’s Construction Cost Index over the previous year.

Section 6. Miscellaneous fees. The following miscellaneous fees shall be charged on all new or amended connections:

Section 7. Pursuant to Government Code section 66013, the Board finds and determines that the Capital Recovery fee as provided above does not exceed the estimated reasonable cost of providing the service for which the Capital Recovery fee is charged. The Board further determines that the fee is a “capacity charge” within the meaning of Government Code section 66013, that the fee is not levied for general revenue purposes, and that the District’s expenditure of fees collected pursuant to this Ordinance shall be in accordance with Government Code section 66013.

Section 8. Any person, who by reason of special circumstances, believes that the provisions of this Ordinance are inequitable in their application to a specific new connection (connections) may apply, in writing, to the Board, setting forth the special circumstances and the inequitable application alleged and requesting relief from the provisions of this Ordinance. An example of such a special circumstance would be where a person is connecting to the sewer and abandoning a septic disposal system.

Upon receipt of such application, the Board shall hold a hearing in which the burden shall be on the applicant to produce competent evidence of the special circumstances and alleged inequitable allocation of the fee, justifying the relief sought. The Board may consider other evidence, including all information supplied by District staff. Upon completion of the hearing, the Board shall weigh all of the evidence presented and make a determination, including a finding that substantial evidence exists for the granting or denial of the application for relief. The Board shall have sole discretion in weighing the evidence and in making such determination, and the decision of the Board shall be final.

Any judicial challenge to the decision made by the Board pursuant to this Section shall be filed within 30 days of the Board’s decision. Such action shall be subject to Code of Civil Procedure section 1094.5.

Section 9. As required by Government Code section 66013, all fees collected under this Ordinance, other than the Miscellaneous Fees set in Section 6, shall be deposited in a separate capital facilities fund with other charges received. The District shall account for the charges in a manner to avoid any comingling with any other monies of the District, except for investments and shall expend these charges solely for the purpose for which these charges were collected. Any interest income earned from the investment of the monies in the capital facilities fund shall be deposited in that fund.

For the fund established pursuant to this Section, the District shall make available to the public, within 180 days after the last date of each fiscal year, the following information for that fiscal year:

(i) A description of the charges deposited in the fund.

(ii) The beginning and ending balance of the fund and the interest earned from investment of monies in the fund.

(iii) The amount of charges collected in that fiscal year.

(iv) An identification of all of the following:

a. Each public improvement on which charges were expended and the amount of expenditure for such improvement, including the percentage of the total cost of the public improvement that was funded with those charges if more than one source of funding was used.

b. Each public improvement on which charges were expended that was completed during that fiscal year.

c. Each public improvement that is anticipated to be undertaken in the following year.

d. A description of each inter-fund transfer or loan made from the capital facilities fund.

The information required pursuant to this Section may be included in the District’s annual financial report.

Section 10. This Ordinance shall be published one time as required by Section 6490 of the Health and Safety Code and shall be effective as of the expiration of the week of publication as established either by a proof of publication from the newspaper in which the Ordinance was published or by a subsequent order of the Board that publication has been properly made.

Section 11. Any judicial action or proceeding to attack, review, set aside, void or annual this Ordinance shall be commenced within the time and manner set forth in Government Code section 66022.

Passed and adopted by Board of Directors of the Summerland Sanitary District this 20th day of June, 2008.