The Cache Creek Area Plan (CCAP), and specifically the Cache Creek Resources Management Plan (CCRMP), Cache Creek Improvement Program (CCIP) and the Off-Channel Mining Plan (OCMP) are funded through aggregate mining fees paid by aggregate producers within the CCAP boundary. The Gravel Mining Fee Ordinance (Chapter 8, Title 11), adopted by the Board of Supervisors in 1996 and amended in April, 2007, requires a series of fees to be placed on each ton of gravel sold (not mined) within the CCAP, for monitoring and restoration of Cache Creek, administration of the program, oversight of mining operations, and long term maintenance and remediation (post 2026), as well as a portion of fees to the Cache Creek Conservancy.
On October 25, 2012, the Natural Resources division received a letter from the California Construction and Industrial Materials Association (CalCIMA). CalCIMA is the industry representative for the sand and gravel producers mining lands in the CCAP program area. CalCIMA and the member gravel producers (Granite, Syar, Teichert, and CEMEX ) are active partners in the implementation of the CCAP.
The letter, provided as Attachment B, asks that the County consider two separate, but related, requests:
1. Freeze the automatic fee increase due in 2013, and
2. Engage in discussion with the aggregate producers during 2013 to consider the long-term structure of the fees.
Fee calculations for the current year are based on tons sold during the previous year (i.e. 2013 fees are calculated and collected based on the number of tons of gravel sold in 2012). Annual CCAP aggregate sales over the past 16 years have averaged 3,523,405 tons. In 2012, the aggregate sales within the CCAP totaled 1,517,741 tons, the lowest in CCAP history, resulting in fees due in 2013 of $830,205. The current 2013 fee breakdown per fund is as follows:
CURRENT Gravel Fees for 2012 to be Paid in 2013
Tons Sold -
2012 |
CCRMP
@.3039/year |
OCMP
@.0972/year |
M & R
@.0243/year |
CCC
@.1216/year |
TOTALS |
| 1,517,741.60 |
$461,241.67 |
$147,524.48 |
$.36,881.12 |
$184,557.38 |
$830,204.65 |
The scheduled fee increase for 2013 raised the fee from 52.6 cents per ton to 54.7 cents per ton. The complete fee schedule, illustrating gravel mining fees from 1997 to 2016, is provided as Attachment C. Approval of this ordinance amendment would suspend the 2.1 cent increase for 2013. This results in a $31,873 decrease in fee revenue for all funds in calendar year 2013.
PROPOSED Gravel Fees for 2012 to be Paid in 2013
Tons Sold-
2012 |
CCRMP @.2922/year |
OCMP @.0935/year |
M & R @.0234/year |
CCC @.1169/year |
TOTALS
|
| 1,517,741.60 |
$443,484.10 |
$141,908.84 |
$35,515.15 |
$177,423.99 |
$798,332.08 |
| DECREASE/FUND |
$17,757.57 |
$5,615.64 |
$1,365.97 |
$7,133.39 |
$ 31,872.57 |
The current ordinance has scheduled fee increases through 2016. Thus, if the Board should support a freeze of the 2013 rate, there are two options to consider for the remaining fee schedule:
1. Extend the current fee schedule by one year from 2016 to 2017. This option freezes the fee for one year and pushes the remaining fee schedule out an additional year to 2017; or,
2. Skip the scheduled increase for 2013 and resume the schedule in 2014 at the 2014 rate retaining the original review date of 2016.
In light of the current economic challenges facing the aggregate industry, County staff recommends option 1. Option 1 is the language included in the attached Ordinance. This will provide additional savings to the Producers in years 2014 to 2017 by pushing out the scheduled increases. If the tons sold remains at the 2012 level (the lowest in history) it would provide an additional $127,490 savings to the producers over the remaining four years of the fee schedule. Based on the average annual tons sold (3,523,405) it would equate to $295,966.
Several agencies in this region have suspended or waived annual fee increases in response to current conditions including the cities of Roseville and Vacaville. Yolo County Planning and Public Works opted to not increase their fees in 2012 for similar reasons.
At the Board’s direction, staff will engage in meaningful discussion with the gravel producers and their representatives in 2013 to explore ways in which the current gravel fee schedule might be made more responsive to economic conditions while still meeting the needs of the CCAP program to carry out its numerous mandates and voter approved policies.
Any further modifications to the gravel mining fee structure would require Board approval. |