San Diego Water District adopts new fee schedule, creates meter-installation categories and per-sheet plan-check charges

The San Diego Water District Board of Directors voted unanimously to adopt a resolution adjusting miscellaneous fees and deposits, including new per‑sheet plan‑check charges and three categories for meter and service installations, during a public hearing at the board meeting.

Principal Engineer Elmer Alex told the board the changes are intended to achieve full cost recovery for developer‑initiated actions and avoid subsidizing those services through general water rates. "The goal of these fees is for full cost recovery and full cost recovery avoids subsidizing these services with general water rates," Alex said.

Staff presented background showing the district already indexes construction‑related fees to the Engineering News‑Record construction cost index (ENR) and non‑construction fees to the Consumer Price Index (CPI). For the prior calendar year staff reported a 3.1% CPI increase applied to non‑construction fees and a 3.7% ENR increase applied to construction‑related fees. Staff proposed applying those indices to the existing fee schedule and moving certain flat fees to per‑sheet plan‑check charges based on average sheet counts (partial maps ~2 sheets, improvement plans ~3 sheets, grading/building/conflict checks ~1 sheet).

On meter and service installations, staff recommended replacing several flat fees with three length‑based categories tied to typical city street dimensions: short side (approximately 12 feet or less), long side (greater than 12 feet up to 32 feet), and a third category for installations greater than 32 feet or other complex conditions (for example cul‑de‑sacs, flag lots, or where a city trench moratorium increases paving requirements). For the most common installation type — a dual meter (3/4" domestic meter plus 1" fire service meter) — staff reported average historical costs and proposed the following illustrative amounts: a short‑side dual meter fee of about $5,500 (based on a $5,300 average cost adjusted by ENR) and a long‑side dual meter fee of about $8,600 (based on an $8,300 average adjusted by ENR). For very long or complex installations staff recommended a time‑and‑materials approach with a developer deposit; staff proposed a minimum refundable deposit of $12,000, with unused funds returned to the developer.

For other meter sizes staff said there was insufficient statistical data and instead used material‑cost differences relative to the dual meter to set fees. Staff noted the current dual meter and service fee was listed as $7,315 and the current 3/4‑inch meter and service fee as $6,465 (a $850 difference). Using that difference and the dual‑meter short/long structure, staff recommended a 3/4‑inch meter/service fee of $4,650 for the short category and $7,750 for the long category as shown in the agenda exhibit.

The public hearing had no speakers. Staff said public notice was provided via The Coast News in the April 4 and April 11 editions. After discussion and clarifying questions from board members about deposits, maintenance funding, and city paving moratoriums, a motion to approve the resolution was made and seconded. The motion carried unanimously with President Lyons absent. The resolution adopted was reflected in the agenda as Resolution 2025‑4; staff recommended the new fee schedule take effect July 1, 2025.

Board members asked several operational clarifying questions during deliberations. Board members confirmed the district operates as an enterprise fund and that ongoing meter maintenance is covered through customer service rates rather than these one‑time deposits. Staff explained the deposit is refundable and intended only to cover direct installation costs: "That's why it's a deposit, not a fee," Alex said. Board discussion also clarified that when a recently resurfaced road is subject to a city paving moratorium the city typically requires a wider patch (staff estimated about an additional 10 feet on each side of a trench), which increases installation costs.

The board approved the adjustment as a single action covering the per‑sheet plan‑check fees, CPI/ENR indexing, the three meter‑installation categories, and the refundable deposit approach for exceptionally long or complex installations. The adopted changes and the detailed fee amounts appear in Exhibit A of the adopted resolution and are effective July 1, 2025.