WATER DEMAND COMMITTEE
ITEM:	ACTION ITEMS
C.	DISCUSS AND RECOMMEND MODIFICATIONS TO REGULATION 6 - FEES
Meeting Date:		April 13, 2004	Budgeted: N/A
Staff Contact:		Stephanie Pintar	Program/Line Item No.: N/A
			Cost Estimate: N/A
General Counsel Approval: N/A
Committee Recommendation: The Water Demand Committee recommends……….
CEQA Compliance: N/A

SUMMARY: Processing fees for functions undertaken by the Water Demand Division have not been comprehensively reviewed or updated since the adoption of Ordinance No. 71 in January 1994. At this time, staff is proposing adding new processing fees for the following services:

1. Water conservation inspections upon change of title

2. Pre-inspections

3. Reinspections of previously failing properties

4. Repeat inspections for any reason (e.g. failed to show inspector water fixtures)

5. No-show inspections

6. Cancellation of inspections – same day

7. Pre-application consulting, including client meetings

8. Deed restriction preparation

9. Verification and documentation of Water Use Credits

10. Extension of documented Water Use Credit

Most of these services require approximately 1½ to two hours of cumulative District staff time. Applicants are currently not charged for any of these services. Tasks related to these services include communications with applicants, applicants’ agents, contractors, architects, real estate agents, preparing documents, writing letters, obtaining and reviewing documents related to property ownership and use, setting up inspections, quantifying credit and amending permits. Proposed fees for added services are shown in the table at Exhibit C-1.

In addition to adding fees for the services discussed above, staff would like to increase existing permit processing fees to account for the amount time involved with processing permit and water credit applications as water becomes less available. The proposed fees are recommendations based on staff’s experience with customers who are trying to find ways to remodel or build a new house and with commercial customers who have to find innovative retrofits to change use or otherwise intensify use. Proposed amendments to the existing processing fees are also included in the exhibit.

The on-going search for water credits by property owners has resulted in numerous complex questions directed to staff regarding how the District verifies or quantifies water credits and how those credits can be used. In addition, staff spends a surprising amount of time answering telephone calls from property owners and their agents, real estate professionals, contractors, designers and architects and other members of the public and other agencies. A recent example is Monday, April 5^th: Staff documented 88 incoming telephone calls at the front desk (calls to staff through their direct numbers were not included in the count). Staff presently processes 10 to15 Water Use Credit requests per week, as compared to a typical single request per month in the past.

RECOMMENDATION: The Water Demand Committee should review the new and adjusted fees and provide direction to staff. Staff recommends a draft fee amendment ordinance be prepared and brought back to the committee for further review.

U:\staff\word\committees\waterdemand\20040413\ActionItems\C\itemc.doc

S. Pintar, 04/06/04, WDC, Fee Changes