Chapter 1.70 GENERATION AND USE OF WASTEWATER REVENUES

The fees and charges described in this chapter and elsewhere in this code shall be established from time to time for each customer class or use classification and, as defined in the ordinance or resolution setting the fees or charges, to recover the costs of providing the service(s) for which they are charged.

The Board of Directors may establish different fees, charges, and payment and billing plans for other governmental districts or agencies.

Revenues derived from regional wastewater service rates and charges shall be recorded in the regional wastewater enterprise fund, and may be used to defray expenses incurred by the District in the operation and maintenance of the wastewater treatment system and the portion of disposal facilities allocated to wastewater treated by the District, including rehabilitation and replacement costs, and to make debt service payments. Nothing in the preceding sentence is intended to preclude the use of such revenues to pay an appropriate portion of administrative costs including overhead.

Under subdivisions (h) and (j) of California Government Code Section 61060 and Sections 61070 and 61115, the District may, at the recommendation of the General Manager, and after due consideration of economic and engineering studies, enter into a joint powers agreement or an agreement with any subscribing agency to provide sewage treatment service at the District sewage treatment plant, and transmission and disposal services. The District may provide in any such agreement for the levying and collection of rates for sewage treatment, transmission, and disposal services designed to fairly and equitably recover the costs of services rendered.

In accordance with a budget adopted by the Board of Directors, a portion of such revenues may be transferred to the regional wastewater replacement and improvement fund.

Revenues derived from local wastewater service rates and charges shall be recorded in the local wastewater enterprise fund, and may be used to defray expenses incurred by the District in the operation and maintenance of the wastewater collection system, including rehabilitation and replacement costs, and to make debt service payments. Nothing in the preceding sentence is intended to preclude the use of such revenues to pay an appropriate portion of administrative costs including overhead.

In accordance with a budget adopted by the Board of Directors, a portion of such revenues may be transferred to the local wastewater replacement and improvement fund.

Except as provided otherwise in this section, revenues derived from regional wastewater capacity reserve fees shall be used only to pay capital costs of expansion of, improvements to, and, to the extent consistent with valid and binding commitments of the District, to pay for rehabilitation or replacement of wastewater treatment and disposal facilities to facilitate service to new connections. Nothing in the preceding sentence is intended to preclude the use of such revenues to pay an appropriate portion of administrative costs including overhead, or to pay other costs that support the capital program but might not otherwise be characterized as capital costs, such as employee labor charges and studies performed by District employees or consultants.

Notwithstanding the foregoing, in accordance with the budget adopted by the Board, a portion of the revenues derived from the District's regional wastewater capacity reserve fees may be used to reimburse existing customers for capacity made available in, or to pay debt service for, wastewater treatment and disposal facilities to service new connections.

Notwithstanding the foregoing, the revenues from regional wastewater capacity reserve fees which have been forfeited as a result of the expiration of one or more construction permits pursuant to DSRSDC § 3.50.040, Expiration of construction permit, and/or expiration or termination of one or more certificate of capacity rights pursuant to DSRSDC § 3.60.020, Expiration of certificate of capacity rights, may also be transferred to the regional wastewater expansion fund designated for replacement of assets.

Except as provided otherwise in this section, revenues derived from local wastewater capacity reserve fees shall be used only to pay capital costs of expansion of, improvements to, and rehabilitation or replacement of wastewater collection facilities to facilitate service to new connections. If and to the extent permitted by law, such revenues may be deposited into and held in the regional expansion fund maintained by the District. Nothing in the preceding two sentences is intended to preclude the use of such revenues to pay an appropriate portion of administrative costs, including overhead, or to pay other costs that support the capital program but might not otherwise be characterized as capital costs, such as employee labor charges and studies performed by District employees or consultants.

Notwithstanding the foregoing, in accordance with the budget adopted by the Board, a portion of the revenues derived from the District's local wastewater capacity reserve fees may be used to reimburse existing customers for capacity made available in, or to pay debt service for, wastewater collection facilities to service new connections.

Notwithstanding the foregoing, the revenues from local wastewater capacity reserve fees which have been forfeited as a result of the expiration of one or more construction permits pursuant to DSRSDC § 3.50.040, Expiration of construction permit, and/or expiration or termination of one or more certificate of capacity rights pursuant to DSRSDC § 3.60.020, Expiration of certificate of capacity rights, may also be transferred to the local wastewater enterprise fund.