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Council adopts update to water and sewer capacity fees, moving toward 90% cost recovery
Summary
Public works recommended raising water and sewer capacity fees from the adopted 75% cost‑recovery scenario toward a 90% scenario plus construction cost inflation escalators; council approved the resolution, which will take effect in 60 days.
Public works director Danielle Bonham presented an update on water and sewer capacity fees, recommending the council move from the previously adopted 75% cost recovery toward the 90% cost recovery scenario plus adjustments for construction cost inflation (San Francisco Bay Area CCI). Bonham noted the 2021 increases already raised single‑family water capacity fees from roughly $6,030 pre‑2021 to about $12,354 and sewer fees from about $4,798 to $14,257 under the adopted schedule.
Staff recommended immediate adoption of the 90% recovery scenario with annual escalations tied to the construction cost index to keep fees aligned with inflation. Councilmembers asked whether the change is typical (staff replied 90% is common), whether it would be retroactive (staff said it would not apply to permits already on the books), and whether accessory dwelling units could be carved out (staff said that would require legal review). The council moved and approved the resolution to update the water and sewer capacity fees; if adopted the changes would take effect 60 days after the vote.
