ATTACHMENT VIII
Memorandum
Department of Public Works & Utilities T: 510.583.4700 TTD: 510.247.3340 777 B Street, Hayward, CA 94541 F: 510.583.3610 www.hayward-ca.gov
DATE: February 26, 2025
TO: Christina Crosby, Deputy Director of Finance
FROM: Alex Ameri, Director of Public Works
SUBJECT: Proposed Revisions to Master Fee Schedule FY 2026 – Miscellaneous Wastewater Fees
The Department of Public Works and Utilities requests the following changes to the section of the Master Fee Schedule pertaining to Wastewater Discharge Permit Fees and Miscellaneous Charges.
The City’s Water Pollution Source Control (WPSC) staff are responsible for issuing permits and monitoring sanitary sewer discharges from significant industrial users to ensure compliance with all Federal, State, and Local requirements and limits. Depending on the nature and volume of discharge, the permits may be classified as “Categorical” or “Non-Categorical Significant.” Other permits may be issued for special purposes or short-term durations. WPSC also monitors discharge from permitted industries and follows up as necessary to ensure compliance with all regulations.
Staff reviewed the costs of providing these services and determined that adjustments are appropriate to incorporate updated levels of effort, hourly rate adjustments and overhead charges. In most cases, full cost recovery was determined to require incremental increases over multiple fiscal years. As such, staff propose that the fees identified below be reviewed annually and adjusted as needed in order to limit the impact on affected businesses. The proposed fees below have been identified during the annual review of these fees.
Recommended adjustments for FY 2026 are as follows:
Wastewater Discharge
Permits
New Permit Permit Renewal Amendment
Current Proposed Current Proposed Current Proposed
Categorical* $5,343 $6,144 $3,668 $4,218 $1,306 $1,501
Non-Categorical Significant* $3,612 $4,513 $2,625 $3,018 $1,018 $1,170 Groundwater* $1,906 $2,191 $1,018 $1,170 $631 $725
Non-Sewered Credit* $231 $265 $231 $265 N/A N/A
Special Purpose (One-
Time)* $1,031 $1,185 N/A N/A N/A N/A
Wastewater Sampling Current Proposed
Composite Sample with Lab Costs* $881 $1,013
Composite Sample without Lab Costs* $406 $466
Grab Sample* $418 $480
Violation Follow-up Sample with Lab Costs* $881 $1,013
Violation Follow-up Sample without Lab Costs* $406 $466 Sampling Equipment Fee $25 $25
Department of Public Works & Utilities T: 510.583.4700 TTD: 510.247.3340 777 B Street, Hayward, CA 94541 F: 510.583.3610 www.hayward-ca.gov
Violation Follow-Up Inspection Current Proposed
Violation Follow-Up Inspection* $768 $883
Development Plan Review Current Proposed
Industrial* $562 $646
Commercial* $562 $646
Residential* $350 $402
*Fees for these services require higher increases for full cost recovery. However, to reduce the impact on businesses, the proposed increases have been capped at a maximum of 15%. The need for further adjustments will be reviewed, and appropriate increases proposed, in future years.
The following table compares the City’s proposed fees for the most common fee types with those of nearby agencies: Oro Loma Sanitary District (Oro Loma); East Bay Municipal Utility District (EMBUD); City of San Leandro; and Dublin San Ramon Services District (DSRSD). Each agency recovers these costs in different ways, so the comparisons listed below are approximate. The proposed fees for FY 2026 remain within a reasonable range of those charged by other agencies.
Service Hayward
(Proposed)
Oro Loma
San Leandro DSRSD EBMUD
Categorical Permits
– New
$6,144 $1,871 annual
permit fee+
$23,549 annual
monitoring
service fee
$1,585+
$972 annual
service
charge
*$5,398 $3,410+
$1,920
Inspection/
monitoring
fees
Violation Follow-
Up Sample
$1,013 $698 $1,609 $864 Based on
actual tests
Violation Follow-
Up Inspection
$883 $698 $695 +
$176/hour
$1,233 $840
minimum +
testing fees
*Including the cost of two samples
Compliance Schedule Current Proposed
Compliance Schedule (for Correction of Violations)* $906 $1,041
Memorandum
Department of Public Works & Utilities T: 510.583.4700 TTD: 510.247.3340 777 B Street, Hayward, CA 94541 www.hayward-ca.gov
DATE: February 26, 2025
TO: Christina Crosby, Deputy Director of Finance
FROM: Alex Ameri, Director of Public Works
SUBJECT: Proposed Revisions to Master Fee Schedule FY 2026 – Sewer Connection Fees for FY 2026 and FY 2027 and Sewer Rates for FY 2026 through FY 2030
The Department of Public Works and Utilities requests to update the Sewer Rates for FY 2026 through FY 2030 and the Sewer Connection Fees for FY 2026 and FY 2027 in the Utilities & Environmental Services – Sanitary Sewer Service Charges and Fees section of the Master Fee Schedule
The Public Works and Utilities Department conducted a sewer rate and connection fee study that included the development of a long-term financial plan, cost-of-service analysis, and rate recommendations consistent with industry standards and in compliance with Proposition 218, which, among other provisions, requires that property-related fees are commensurate with the cost of services received. On February 18, 2025, Hayward City Council adopted the sewer rates and connection fees as detailed in the tables below.
The City collects sewer connection fees to connect new services to the existing sewer system. These fees fund the expansion of the system necessary to accommodate development, defray the expenses paid by customers for improvements to the system, and incrementally cover the cost of future expansion and improvements. The connection fees are developed using standard procedures to ensure that costs are allocated fairly to new developments.
Sewer service charges are established to pay for the cost of collecting, treating, and disposing of wastewater. Calculations are consistent with industry practices to ensure that sufficient revenues are collected to operate and maintain the system and cover all obligations of the Wastewater Operating Fund. Sewer service charges are billed as standard fixed amounts for residential customers. For non-residential customers, sewer service charges are calculated as a cost per hundred cubic feet (CCF) of water consumed, based on the strength of the discharged wastewater.
To improve cost recovery for these services, staff recommend including the following changes to the Master Fee Schedule starting FY 2026:
Department of Public Works & Utilities T: 510.583.4700 TTD: 510.247.3340 777 B Street, Hayward, CA 94541 F: 510.583.3610 www.hayward-ca.gov
Sewer Connection Fees
Sep 1, 2025 Sep 1, 2026
(1) Single family, duplex, triplex, and fourplex residential units, townhouses, and planned developments
$13,235 $14,559
(2) Multi-family, high density residential, and mobile homes, each residential unit
$11,781 $12,960
(3) Accessory Dwelling Units (ADUs, where applicable), each unit $5,295 $5,825 (4) Commercial, industrial, institutional and all other connections:
Per gallon of daily capacity required to serve the user $32.98 $36.28 Per pound per year of carbonaceous biochemical oxygen
demand (cBOD)
$34.11 $37.53
Per pound per year of suspended solids (SS) $22.34 $24.58 Minimum charge $13,235 $14,559
For the purposes of calculating non-residential sewer connection fees, carbonaceous biochemical oxygen demand (CBOD) and suspended solids (SS) will be reduced by 70% of the estimated actual concentrations in discharge, but not lower than the CBOD and SS for domestic wastewater, that is, 307 milligrams per liter and 258 milligrams per liter respectively. The property will be entitled to discharge CBOD and SS commensurate with the actual estimated concentrations. The volume component will not be reduced and will be charged at 100% of the estimated actual daily discharge. The CBOD and SS reduction is applicable only to an estimated daily discharge of 50,000 gallons or less. Discharge in excess of 50,000 gallons per day from a facility will be subject to a sewer connection fee based on full CBOD and SS concentrations. This provision will be in effect through September 30, 2027.
Sewer Service Charges
Residential Service Monthly Charge
Jul 1, 2025 Jul 1, 2026 Jul 1, 2027 Jul 1, 2028 Jul 1, 2029 Residential Unit:
Standard (Over 8 units of
metered water usage)
$47.83 $53.57 $60.00 $67.20 $75.27
*Economy (5 to 8 units of
metered water usage) $22.52 $25.23 $28.26 $31.66 $35.46 *Lifeline (0 to 4 units of
metered water usage) $11.61 $13.01 $14.58 $16.33 $18.29 Duplex, Triplex, Fourplex (per
unit) $47.83 $53.57 $60.00 $67.20 $75.27
Multi-Family $43.49 $48.71 $54.56 $61.11 $68.45
Mobile Home $32.34 $36.23 $40.58 $45.45 $50.91
*Economy and Lifeline rates are only applicable for City water customers
Non-Residential Service – Critical Users
Department of Public Works & Utilities T: 510.583.4700 TTD: 510.247.3340 777 B Street, Hayward, CA 94541 F: 510.583.3610 www.hayward-ca.gov
Constituent/Unit Sewer Service Charge
Jul 1, 2025 Jul 1, 2026 Jul 1, 2027 Jul 1, 2028 Jul 1, 2029 Flow, Cost per 100 cubic feet (ccf) $5.49120 $6.15020 $6.88830 $7.71490 $8.64070 Carbonaceous Biochemical Oxygen
Demand – Cost per pound $0.51680 $0.57890 $0.64840 $0.72630 $0.81350 Suspended Solids – Cost per pound $1.78620 $2.00060 $2.24070 $2.50960 $2.81080
Non-Residential Service – Coded Users
Customer Classification Sewer Service Charge Per ccf
With Separate Irrigation Meter
Jul 1, 2025 Jul 1, 2026 Jul 1, 2027 Jul 1, 2028 Jul 1, 2029 All Other Domestic Use $7.95 $8.91 $9.98 $11.18 $12.53 Restaurant w/ Grease Interceptor $10.53 $11.80 $13.22 $14.81 $16.59 Restaurant w/o Grease
Interceptor $12.96 $14.52 $16.27 $18.23 $20.42
Commercial Laundry $9.04 $10.13 $11.35 $12.72 $14.25 Bakery $14.39 $16.12 $18.06 $20.23 $22.66
Industrial Laundry $14.04 $15.73 $17.62 $19.74 $22.11 Beverage Bottling $9.13 $10.23 $11.46 $12.84 $14.39 Food Manufacturing $25.72 $28.81 $32.27 $36.15 $40.49 Meat Products $17.22 $19.29 $21.61 $24.21 $27.12
Slaughterhouse $19.82 $22.20 $24.87 $27.86 $31.21
Dairy Product Processors $14.21 $15.92 $17.84 $19.99 $22.39 Canning and Packing $10.13 $11.35 $12.72 $14.25 $15.96 Grain Mills $13.33 $14.93 $16.73 $18.74 $20.99
Fats and Oils $9.61 $10.77 $12.07 $13.52 $15.15
Pulp and Paper Manufacturing $10.07 $11.28 $12.64 $14.16 $15.86 Inorganic Chemicals $16.26 $18.22 $20.41 $22.86 $25.61 Paint Manufacturing $25.34 $28.39 $31.80 $35.62 $39.90 Leather Tanning $33.37 $37.38 $41.87 $46.90 $52.53 Fabricated Metal $5.87 $6.58 $7.37 $8.26 $9.26
Customer Classification Sewer Service Charge Per ccf
Department of Public Works & Utilities T: 510.583.4700 TTD: 510.247.3340 777 B Street, Hayward, CA 94541 F: 510.583.3610 www.hayward-ca.gov
Without Separate Irrigation Meter
Jul 1, 2025 Jul 1, 2026 Jul 1, 2027 Jul 1, 2028 Jul 1, 2029 All Other Domestic Use $7.16 $8.02 $8.99 $10.07 $11.28 Restaurant w/ Grease Interceptor $9.47 $10.61 $11.89 $13.32 $14.92 Restaurant w/o Grease Interceptor $11.66 $13.06 $14.63 $16.39 $18.36 Commercial Laundry $7.79 $8.73 $9.78 $10.96 $12.28 Bakery $13.87 $15.54 $17.41 $19.50 $21.84
Industrial Laundry $12.63 $14.15 $15.85 $17.76 $19.90 Beverage Bottling $8.21 $9.20 $10.31 $11.55 $12.94 Food Manufacturing $30.58 $34.25 $38.36 $42.97 $48.13 Meat Products $13.15 $14.73 $16.50 $18.48 $20.70 Slaughterhouse $17.85 $20.00 $22.40 $25.09 $28.11 Dairy Product Processors $12.78 $14.32 $16.04 $17.97 $20.13 Canning and Packing $9.11 $10.21 $11.44 $12.82 $14.36 Grain Mills $12.01 $13.46 $15.08 $16.89 $18.92 Fats and Oils $8.65 $9.69 $10.86 $12.17 $13.64 Pulp and Paper Manufacturing $8.89 $9.96 $11.16 $12.50 $14.00 Inorganic Chemicals $14.64 $16.40 $18.37 $20.58 $23.05 Paint Manufacturing $22.82 $25.56 $28.63 $32.07 $35.92 Leather Tanning $30.02 $33.63 $37.67 $42.20 $47.27 Fabricated Metal $5.28 $5.92 $6.64 $7.44 $8.34
Memorandum
Department of Public Works & Utilities T: 510.583.4700 TTD: 510.247.3340 777 B Street, Hayward, CA 94541 www.hayward-ca.gov
DATE: February 21, 2025
TO: Christina Crosby, Deputy Director of Finance
FROM: Alex Ameri, Director of Public Works
SUBJECT: Proposed Revisions to Master Fee Schedule FY 2026 – Airport Services Fees
The Department of Public Works and Utilities requests the following changes to the section of the Master Fee Schedule pertaining to Airport Services (Engineering and Transportation Services, Section A).
The Hayward Executive Airport owns and leases 206 enclosed hangars and 116 tie-down spaces that accommodate aircraft of various sizes, from small single-engine airplanes to corporate jets. The “Ramp Sweeping Services, hourly rate” is established so that Airport Maintenance staff can provide private leasehold tenants the service of sweeping their property and ramp. When this service is requested by tenants, the established fee of $238 per hour is solely for the use of the sweeper itself.
To add clarity to the “Ramp Sweeping Services, hourly rate” fee, staff recommend adding the bolded language so that it reads as follows:
Fee Type Current Proposed
Ramp Sweeping Services, hourly rate
*Ramp Sweeping Services do not include staff time
$238/hour $238/hour
Further, staff would like to update the title of “Aircraft Hangar Waitlist Application Refundable Deposit” to "Waitlist Deposit." The fee will apply to Hangars, Storage Rooms & Office Spaces.
Fee Type Current Proposed
Waitlist Deposit $150 $200
As seen in the table below, other nearby airports (Palo Alto, Reid Hillview, San Carlos, Livermore) charge considerably more for the wait list deposit; however, the need for further fee adjustments will be reviewed, and appropriate increases proposed in future years.
Agency Waitlist Deposit
Hayward (Current) $150
Hayward (Proposed) $200
Livermore $365
Palo Alto $500
San Carlos $500
Reid Hillview $843.50
Department of Public Works & Utilities T: 510.583.4700 TTD: 510.247.3340 777 B Street, Hayward, CA 94541 F: 510.583.3610 www.hayward-ca.gov
Also, staff propose that “5.b. Re-Key Padlocks - $35” be removed and replaced with a new fee titled "Padlock Replacement." The proposed fee amount includes the cost of the padlock, two keys, core, and rubber protective cover. The proposed fee excludes tax, shipping, and staff time to put it all together and install on the hangar.
Fee Type Current Proposed
Padlock Replacement N/A $126
Lastly, staff would like to request that the “a. Commercial Operator/ Fixed Base Operator Waste Oil Fee be re-formatted to “15. Commercial Operator/ Fixed Base Operator Waste Oil Fee” as it is not a subcategory of Airport Project Administration Fee as currently displayed on the Master Fee Schedule.
Memorandum
Department of Public Works & Utilities T: 510.583.4700 TTD: 510.247.3340 777 B Street, Hayward, CA 94541 www.hayward-ca.gov
DATE: February 21, 2025
TO: Christina Crosby, Deputy Director of Finance
FROM: Alex Ameri, Director of Public Works
SUBJECT: Proposed Revisions to Master Fee Schedule FY 2026 – Traffic Impact Fees
The Department of Public Works and Utilities requests the following changes to the section of the Master Fee Schedule pertaining to Services (Engineering and Transportation Services, Section B).
A traffic impact fee (TIF) is a one-time fee imposed on new development projects to help mitigate the cumulative transportation impacts of development growth. TIFs imposed on new development are linked to the concept that traffic generated by the proposed development will cause traffic deficiencies.
TIFs help ensure that future developers pay their fair share toward transportation improvements in order to minimize future impacts. Improvement include addition of bicycle and pedestrian facilities, installation of traffic signals, efficient re-timing of signals, and increase in capacity for all modes of transportation.
In May 2022, City Council adopted a TIF, which considered the recommendations of a TIF Study performed by Nexus Study. The resolution also included the adoption of Hayward Municipal Code Chapter 10, Article 30 – Property Developers - Traffic Impact Fees. TIF fees are currently applicable to single family residential, townhome, industrial, and distribution developments. The City Council also adopted a maximum TIF rate for multi-family residential, retail and office land uses; however, the rate for those land uses is currently set at $0.
Per the adopted TIF Resolution #22-134 and Ordinance #22-05, the TIF shall be automatically adjusted annually on the first of the fiscal year based on the preceding calendar year average California Construction Cost Index (CCI) for the San Francisco Bay Area published by the Engineering News Record (ENR)” and “In no event shall the annual adjustment result in a fee that exceed the maximum fee rate previously adopted by the City Council.”
The CCI annual average for calendar year 2024 was –0.14%. To align with CCI adjustments, staff recommend including the following changes to the Master Fee Schedule starting FY 2026:
Department of Public Works & Utilities T: 510.583.4700 TTD: 510.247.3340 777 B Street, Hayward, CA 94541 F: 510.583.3610 www.hayward-ca.gov
Fee Type
Maximum
Allowable
(Per CC
5/24/22)
Adopted MFS FY25
CCI Adjustment at
2.69%
Proposed MFS FY26
Adjustment at -0.14%
Residential Per Unit Per Unit Per Unit
(1) Single-Family
Residence/Unit $ 11,584 $ 3,942 $3,936
(2) Townhome/Unit $ 7,761 $ 3,942 $3,396
(3) Multi-family/Unit $ 7,761 $ -
Non-Residential Per KSF Per KSF
(1) Retail/KSF $ 19,460 $ -
(2) Office/KSF $ 16,449 $ -
(3) General
Industrial/KSF $ 4,633 $ 3,679 $3,674
(4) Distribution or e-
commerce/KSF $ 8,224 $ 6,531 $6,522
In addition, staff is proposing an update to the Appeal Fee associated with the TIF. The Appeal Fee may be charged to a developer of a project who wishes to appeal the imposition and/or calculation of the TIF. Any development applicant aggrieved by any decision of the Public Works – Transportation Division with respect to the amount of such fee, interest, and imposition, if any, may appeal to the City Manager.
To align with CCI adjustments, staff recommend including the following changes to the Master Fee Schedule starting FY 2026:
Fee Type Current
Proposed MFS FY26 CCI
Adjustment at -0.14%
Appeal Fee $454 $453
Memorandum
Department of Public Works & Utilities T: 510.583.4700 TTD: 510.247.3340 777 B Street, Hayward, CA 94541 www.hayward-ca.gov
DATE: February 21, 2025
TO: Christina Crosby, Deputy Director of Finance
FROM: Alex Ameri, Director of Public Works
SUBJECT: Proposed Revisions to Master Fee Schedule FY 2026 – Water Service Charges and Installation Fees and Miscellaneous Water System Fees
The Department of Public Works and Utilities requests the following changes to the section of the Master Fee Schedule pertaining to the Water Service Charges and Installation Fees (Section A).
Increase Charges for Single Services and Manifold Services
Per Hayward Municipal Code Sec. 11-2.04 and 2.05, customers shall be charged for the cost of new water service connections, which includes installation fees, cost of materials, labor and equipment, other costs incurred on site during installation, and overhead/administrative costs.
In order to improve cost recovery, staff recommend increasing water service charges and installation fees for single services and manifold services by 25% in FY 2026. Full cost recovery may require incremental increases over several fiscal years. As such, fees will be reviewed annually and adjusted as needed in such a way that limits impacts to water users.
Recommended adjustments for FY 2026 are as follows:
Single Service
Meter Size and Service Size Current Fee Proposed Fee*
5/8” x 3/4" $5,250 $6,560
3/4" x 3/4" $5,250 $6,560
3/4" x 1” $5,250 $6,560
1” x 1” $5,250 $6,560
1” x 1-1/2” $6,200 $7,750
1-1/2” x 1-1/2” $6,862 $8,575
1-1/2” x 2” $6,862 $8,575
2” x 2” $7,300 $8,800
Larger than 2” x 2” Actual cost of labor, materials,
& equipment**
Actual cost of labor, materials,
& equipment**
Department of Public Works & Utilities T: 510.583.4700 TTD: 510.247.3340 777 B Street, Hayward, CA 94541 F: 510.583.3610 www.hayward-ca.gov
Manifold Service
Meter Size Service Size Current Fee Proposed Fee*
5/8" x 5/8" 1" $6,675 $8,340
3/4" x 3/4" 1" $6,675 $8,340
1" x 1" 1-1/2" $6,675 $8,340
1" x 1-1/2" 2" $7,100 $8,875
1-1/2" x 1-1/2" 2" $7,525 $9,400
1-1/2" x 2" 2" $7,762 $9,600
2" x 2" 2" $8,037 $9,800
More than two meters or larger than
2” service line
Actual cost of labor,
materials, & equipment**
Actual cost of labor,
materials, & equipment**
*Fees for these services require higher increases for full cost recovery. To limit the impact on water customers, increases have been capped at 25%. The need for further adjustments will be reviewed, and appropriate increases proposed, in future years.
** Per Hayward Municipal Code Sec. 11-2.05, actual costs can be charged for services larger than two inches and unusually long or difficult service connections of any size.
Increase Charges for Meters Set on Existing Service
Staff have calculated the actual costs incurred by the City to provide these services and recommend increasing fees as shown in the table below to achieve better cost recovery.
Meters Set on Existing Service
Meter Size and Service Size Current Fee Proposed Fee
5/8" $425 $530
3/4" $475 $590
1" $525 $650
1-1/2” $800 $850
Larger than 2" Actual cost of labor, materials,
& equipment**
Actual cost of labor, materials,
& equipment**
Comparison with Other Service Providers
The following table compares the City’s proposed fees for the most common fee types to those of other nearby agencies: East Bay Municipal Utility District (EBMUD), Alameda County Water District (ACWD), Dublin San Ramon Services District (DSRSD), and the City of Pleasanton. The results indicate that the proposed fee is generally within a reasonable range of those charged by other agencies.
Department of Public Works & Utilities T: 510.583.4700 TTD: 510.247.3340 777 B Street, Hayward, CA 94541 F: 510.583.3610 www.hayward-ca.gov
Single Services
Meter Size and Service Size Hayward (Proposed) ACWD EBMUD 5/8” x 3/4" $6,562 $7,506 (SFR)
$6,305 (MFR)
$6,068 (unpaved)
$11,010 (paved)
1” x 1” $6,562 $7,506 (SFR)
$6,305 (MFR)
$6,068 (unpaved)
$11,010 (paved)
Meters Set on Existing Service
Meter Size Hayward (Proposed) ACWD Pleasanton DSRSD
3/4" $590 $306 $453 (short)
$478 (long)
$760
1" $650 $364 $614 $867
Further, based on the User Fee Study conducted in fiscal year 2024, staff would like to propose the updates below to the “h. Other Water System Fees and Charges” section of Master Fee Schedule to better capture costs associated with providing the various services below. Fees for most of these services require higher increases for full cost recovery. To limit the impact to customers, increases have been capped at 20%. The need for further adjustments will be reviewed, and appropriate increases proposed in future years.
Fee Type Current Proposed
After-Hours Meter Activation Fee $90 $108
Meter Lock Fee $115 $138
Meter Removal Fee $112 $134
Meter Test Fee (up to 1-inch meter) $278 $333
Meter Test Fee (1 1/2 -inch to 2-inch meter) $368 $441
Meter Test Fee (3-inch meter and larger) $458 $549
*Noticing Fee $24 $6
*Staff is requesting a decrease to the Noticing Fee starting in FY26, as this Notice is no longer delivered by City of Hayward staff. The Notice is now sent via mail and therefore requires less staff time.
Associated costs with the Noticing fee include minimal weekly staff time for gathering customer data and mailing supplies/postage.
Memorandum
Department of Public Works & Utilities T: 510.583.4700 TTD: 510.247.3340 777 B Street, Hayward, CA 94541 F: 510.583.3610 www.hayward-ca.gov
DATE: February 21, 2025
TO: Christina Crosby, Deputy Director of Finance
FROM: Alex Ameri, Director of Public Works
SUBJECT: Proposed Revisions to Master Fee Schedule FY 2026 – Miscellaneous Water Hydrant Meter Charges
The Department of Public Works and Utilities requests the following changes to the section of the Master Fee Schedule pertaining to minimum charges for hydrant and meter monthly consumption.
Hayward Municipal Code Chapter 11, Article 2, Sec. 2.22 requires that all water furnished for construction or related work shall be measured through a water hydrant meter provided by the City and shall be paid for by the customer at the same rates as metered consumption. A deposit to cover the full cost of replacement of the meter and backflow assembly and the estimated cost of water consumption for two (2) months will be retained by the City at the time application is made to ensure the safe return of all materials and supplies and the payment of water usage charges.
In instances where customers fail to report the water consumption read, a Failure to Report Fee and a minimum monthly charge is applied to the customer’s account. The current minimum monthly charge for 3” meters is based on continuous water usage. However, since charges are calculated using whole centum cubic feet (CCF), staff recommend the following update to the Master Fee Schedule starting FY 2026:
Fee Type Current Proposed
3” meter 12,750 cu ft. (127.5 CCF) 12,700 cu ft. (127 CCF)
Staff is not proposing any updates to the established ¾", 4”, or 6” water hydrant meter monthly minimum charges for FY26.
Further, the minimum monthly charges are only billed to those customers who do not report water consumption data in the time period specified in Hayward Municipal Code (within the first five working days of the month). Customers who report water consumption per municipal code shall only be charged the amount consumed, in addition to the monthly meter service charge. However, to clarify the reporting process, Staff propose the following update in the Water Services Charges and Installation Fees section b. (3):
From: All hydrant and construction meter accounts accrue charges for monthly consumption on the following amounts. However, customers who report water consumption data and can provide proof they have consumed less than the proposed minimum charges in the table below shall only be billed for the amount consumed.
Department of Public Works & Utilities T: 510.583.4700 TTD: 510.247.3340 777 B Street, Hayward, CA 94541 F: 510.583.3610 www.hayward-ca.gov
To: All hydrant and construction meter accounts accrue charges for monthly consumption on the following amounts. However, customers who report water consumption data during the reporting period of the first 5 working days of each month and provide proof they have consumed less than the proposed minimum charges in the table below shall only be billed for the amount consumed.
Also, in instances where customers fail to report the monthly meter read, a Failure to Report Fee is imposed. Before fiscal year 2024, this fee had not been updated or compared with similar agencies’ fees in several years.
To encourage customers to comply with the aforementioned reporting requirements and to align fee amounts closer to similar agencies, staff is proposing the update below to the Master Fee Schedule starting FY 2026:
Fee Type Current Proposed
Failure to Report Hydrant or Construction Meter Reading Fee $120 per month $150 per month
Comparison with Other Service Providers
The following table compares the City’s proposed fees to similar fees of other nearby agencies: Alameda County Water District (ACWD), East Bay Municipal Utility District (EBMUD), and Dublin San Ramon Services District (DSRSD), and San Francisco Power Utilities Commission. The results indicate that the proposed fee is generally within a reasonable range of those charged by other agencies.
Agency Failure to Report Hydrant or Construction Meter Reading Fee Hayward (Current) $120
ACWD $130
Hayward (Proposed) $150
EBMUD $289
SFPUC $292
DSRSD $339
Lastly, staff is proposing a new fee related to water service charges be added to Section “h, Other Water System Fees and Charges,” of the Water Service Charges and Installation Fees. In some instances, staff must locate a water hydrant meter at a construction job site, or other location. The proposed fee below will establish a mechanism of recovering costs associated with staff time, equipment, and materials needed for this investigation. Full cost recovery may require incremental increases over several fiscal years. As such, fees will be reviewed annually and adjusted as needed.
To improve cost recovery for these services, staff recommend including the following changes to the Master Fee Schedule starting FY 2026:
Fee Type Current Proposed
Water Hydrant Meter Site Visit fee N/A $125
Comparison with Other Service Providers
The following table compares the City’s proposed fees to similar fees of other nearby agencies: Alameda County Water District (ACWD), East Bay Municipal Utility District (EBMUD), and Dublin San Ramon Department of Public Works & Utilities T: 510.583.4700 TTD: 510.247.3340 777 B Street, Hayward, CA 94541 F: 510.583.3610 www.hayward-ca.gov
Services District (DSRSD). The results indicate that the proposed fee is generally within a reasonable range of those charged by other agencies.
Agency
ACWD $105
DSRSD $112
Hayward (Proposed) $125
EBMUD $222
Memorandum
Department of Public Works & Utilities T: 510.583.4700 TTD: 510.247.3340 777 B Street, Hayward, CA 94541 www.hayward-ca.gov
DATE: February 21, 2025
TO: Christina Crosby, Deputy Director of Finance
FROM: Alex Ameri, Director of Public Works
SUBJECT: Proposed Revisions to Master Fee Schedule FY 202 6 – Water & Sewer Impact Evaluation Deposits
The Department of Public Works and Utilities requests to add two new deposit fees in the Utilities & Environmental Services section of the Master Fee Schedule after “k. Water Service Connection Plan Review (Outside City of Hayward’s Jurisdiction).”
The Public Works & Utilities Department reviews applications for development projects and determines if water system impact evaluations and/or sanitary sewer system impact evaluations are needed. If evaluations are needed, City staff would coordinate directly with our on-call consultant for engineering and hydraulic modeling services, and the consultant services would be reimbursed using this deposit.
These assessments are critical to identifying infrastructure improvements that may be needed to serve new developments and to ensure that new developments do not impact existing water and sewer rate payers.
Water system impact evaluations are needed in a timely way to:
1) Assess the impacts of proposed land use changes and developments on the water distribution system infrastructure;
2) Develop solutions to operational challenges; and
3) Evaluate recommended improvement projects to confirm sizing and/or timing.
Sanitary sewer system capacity evaluations are needed in a timely way to:
1) Assess the impacts of proposed developments on the sewer system infrastructure; 2) Evaluate "what if" scenarios related to new or improved sewer facilities; and 3) Evaluate recommended improvement projects to confirm sizing and/or timing.
The Department does not currently have sufficient expertise to run the hydraulic models in-house, therefore we have on-call consultants whose costs would be reimbursed by developers. Having a deposit in place upfront from the developer streamlines the process to initiate evaluations and improves the Department's ability to respond to the developer in a timely manner. To improve cost recovery for these services, staff recommend including the following changes to the Master Fee Schedule starting FY 2026:
Fee Type Current Proposed
Water System Impact Evaluation N/A $10,000 Deposit
Sanitary Sewer System Impact Evaluation N/A $10,000 Deposit