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Home My WebLink About08-20-2013 ac quaglino PH1Ouagfino OPHOP F"'I'll"MOr'S 11131 August 9, 2013 The Honorable Jan Howell Marx, Mayor of San Luis Obispo and Members of the San Luis Obispo City Council 995 Palm Street San Luis Obispo, CA 93401 Re: Water & Waste Water impact Fee Review Dear Mayor Marx and Members of the City Council: RECEIVED AUG 12 2013 Sao CITY CLERK AGENDA CORRESPONDENCE Date 4 NI iIItem#fy L_ I was very surprised and appreciative to receive the attached proposed correction to the water and wastewater development fee schedule that will be heard at the August 20`h, city council meeting. If approved, the fee reduction will be a welcome savings for development projects as well as an obvious needed correction to the current fees. The adjusted fees are a significant reduction that will make a meaningful difference. With that said I have a question and several comments regarding the proposal; 1. The memo from the utility Department recommends the corrected fees be retroactive to July 1, 2013. What does or will the retroactive date apply to; the date fees were paid, the date of plan submission, the date of entitlement or some other milestone? I would hope the retroactive date Is defined in the staff report, which I look forward to reviewing. 2. The memo also outlines twelve changes influencing the decision to propose the rate correction. It is my belief the retroactive date should coincide with; when the city was able to define the point in time at which the rates should have been adjusted based on the twelve influencing changes. Why July 1, 2013, why not January 1, 2013 or January 1, 2012? It is only fair to apply reimbursements retroactive to the date the actual cost savings were realized by the utility department. If the city is to be true to their own philosophy that; "Development Pay Their Fair Share" then It is only fair and equitable to reimburse those that have been paying more than their fair share. Regardless of the dollar amount and or the length of time that has passed. All fees paid In excess of what should have been paid should be returned to their rightful owners. I believe the July 1, 2013 retroactive date is arbitrary and should be reviewed and adjusted to actual, or something other than a date without substantiation such as July 1, 2013. In closing I want to thank you for taking the steps necessary to reduce development fees whenever possible. Any help provides much needed relief from the high cost of developing in the city of San Luis Obispo. Thank you and please contact me with any questions that I may be able to answer. Sincerely Matt Quaglino WVA%(Juag1i110.c0m 815 Fiero Lane San Luis Obispo California 93401 P: 805.543.0560 F: 805.543.0679 2013 Water & Wastewater (D Development Impact Fee Utilities Summary IDgmriment City of San Luis Obispo The City Council will consider the adoption of the proposed water and wastewater impact fees at its meeting on August 20, 2013. The meeting starts at 6:00 p.m. and will be held in the City Council Chambers located at 990 Palm Street. Staff is recommending the water and wastewater development impact fees be applied retroactive to July 1, 2013. The Utilities Department prepared the 2013 Development Impact Fee Study to update the City's water and wastewater development impact fees. The Study reflects the following changes since the adoption of the current fees in 2004. Changes influencing the Water Development Impact Fee: 1. Applied policies from the General Plan's Water and Wastewater Management Element (2010). 2. Updated water demand and factors used to project future water demand. 3. Updated City demographics from the 2010 Census and the General Plan's Housing Element (2010). 4. Updated water supply capital costs. 5. Eliminated the Water Area -Specific add -on fee for the Airport and Margarita Areas. Changes Influencing the Wastewater Development Impact Fee: 1. Changed existing and projected wastewater generation rates. 2. Updated wastewater capital facility costs from the 2013-15 Financial Plan, the 2011 Water Reclamation Facility Master Plan, and City project financing resources. 3. Changed from "Area Specific Add -On" fees to "Catchment Area" fees for specific wastewater lift station facilities. 4. Eliminated the 3.5 percent adjustment in the citywide non-residential fee related to higher wastewater discharge strengths. Changes influencing both Water and Wastewater Development Impact Fees: 1. Inclusion of a new fee class for secondary dwelling units (studio units less than 450 square feet) that is 30 percent of one equivalent dwelling unit. This unit type was previously charged the fee for a multi -family residential unit. 2. Decrease of multi -family unit development impact fee from 80 to 70 percent of one equivalent dwelling unit. 3. Updated equivalent dwelling units (EDUs) projections for future residential and non- residential development including updated water meter size equivalency factors with American Water Works Association standards. The tables on the next page summarize the existing (as of July 1, 2013) and proposed water and wastewater and development impact fees as they apply to residential and non-residential development. _ ry r)f San Luis Obispo 2013 Water & Wastewater Development Impact Fee Summary Existing and Proposed Water Development Impact Fees Existing Water ~Proposed Water T]evelo ment Impact Fee � Development Impact Fee Net Fee Change Residential Uses •!A -`::milt' Unit $17 383 $10,775 $ 6,608 Multi -family Unit $13,906 $7,542 -$6 364 Mobile Home $12,168 $6,465 -$5,703 Studio Unit, 450 square feet or less $13,906 $3,232 -$10,674 Non-kesidential Uses % inch Water Meter $17,383 $10,775 -$6,608 1 inch Water Meter $34,766 $18,317 -$16,449 1.5 inch Water Meter $69,532 $36,633 _$32,899 2 inch Water Meter $111,251 $58,182 -$53,069 3 inch Water Meter $243,362 $115,287 -$128,075 4 inch Water Meter $382,426 $179,934 -$202,492 6 inch Water Meter $782,235 $359,869 -_�497 RFS Existing and Proposed Wastewater Development Impact Fees Existing Wastewater Proposed Wastewater Development Impact Fee Development Impact Fee Net Change Residential Uses Single-family Unit $4,203 $3,729 -$474 Multi -family Unit $3,362 $2,610 _$752 Mobile Home $2,942 $2,237 -$705 Studio Unit, 450 square feet or less $3,362 $1,119 -$2,243 Non -Residential Uses 3/< inch Water Meter $4,349 $ 3,729 -$620 1 inch Water Meter $8,698 $ 6,339 -$2,359 1.5 inch Water Meter $17,396 $12,678 -$4,718 2 inch Water Meter $27,834 $20,135 -$7,699 3 inch Water Meter $60,886 $39,897 -$20,989 4 inch Water Meter $95,678 $62,270 -$33,408 6 inch Water Meter $195,705 $124,540 -$71,165 Existing and Proposed Wastewater "Add -On" Fees Planning Areas Existing Wastewater Development Impact Fee Proposed Wastewater Development Impact Fee $3,630 (now Tank Farm) Net Change +$1,777 Area Specific "Add -On" Airport $1,853 Area Specific "Add -On" Margarita* $1,853 $2,745 (now Margarita) $1,356 (now Silver City) $3,630 (now Tank Farm) +$892 - $497 +$1,777 Area Specific "Add -On" Edna Islay $1,853 $3,630 (now Tank Farm) +$1,777 Area Specific "Add -On" Dalidio $271 $ 490 (now Laguna) +$219 Area Specific "Add -On" Madonna $271 $ 490 (now Laguna) +$219 Area Specific "Add -On" McBride $271 $1,829 (now Calle Joaquin) +$1,558 Area Specific "Add -On" Irish Hills $477 $1,829 (now Calle Joaquin) +$1,352 Area Specific "Add -On" Orcutt $3,383 $3,630 (now Tank Farm) +$247 *NOTE: Portions of the Margarita Planning Area flow to the Margarita, Silver City, and Tank Farm catchment areas.