FROM: Robert Thompson, General Manager
Originator: Wally Ritchie, Director of Finance
SUBJECT:
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CAPITAL FACILITY CAPACITY CHARGE SUPPORT SERVICES, SPECIFICATION NO. CS-2026-717BD
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GENERAL MANAGER'S RECOMMENDATION
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RECOMMENDATION:
A. Approve a Professional Consultant Services Agreement to CityTech Solutions, Inc. to perform Capital Facility Capacity Charge (CFCC) Support Services, Specification No. CS-2026-717BD, for a total amount not to exceed $178,970; and
B. Approve a contingency of $17,897 (10%).
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BACKGROUND
OC San assesses Capital Facilities Capacity Charges (CFCCs) to fund new capital projects or improve existing capital projects. CFCCs are a one-time charge imposed at the time a building or structure is newly connected to OC San's System, or an existing structure or category of use is expanded or increased.
In the 1970s, OC San entered into agreements with cities and agencies in the OC San service areas to issue permits and collect charges for CFCCs on OC San's behalf. The cities and agencies are provided a fee of 5% of the amounts collected while acting as the agent for OC San. These agreements can be terminated by either party by giving 180 days' written notice.
Effective July 1, 2024, the City of Seal Beach elected to terminate their agreement to act as OC San's agent for CFCCs. Since then, OC San staff has been processing and collecting charges directly for all applicants in the City of Seal Beach. Starting July 1, 2026, OC San staff will also be collecting directly for newly transferred areas from the Irvine Ranch Water District (IRWD). Other cities have indicated that they may be interested in terminating their agreements. Staff intends to explore the expansion of this program to other cities and agencies that are currently acting as agents.
RELEVANT STANDARDS
* Ensure the public's money is wisely spent
* Maintain collaborative and cooperative relationships with regulators, stakehold...
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