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HomeMy WebLinkAbout01/04/1996, 3 - APPEAL OF WATER AND WASTEWATER IMPACT FEESQl�iul� l�lll�lllll11111ll 1l/ of j P MEETING DATE: 4 �S �� U� LU�S OB�S�.1� January 4 1996 COUNCIL AGENDA REPORT I NUM FROM: John E. Moss, Utilities Directo l - SUBJECT: Appeal of Water and Wastewater Impact Fees CAO RECOMMENDATION: By Motion, deny appeal filed by the San Luis Obispo Council of Governments ( SLOCOG) for waiver of water and wastewater impact fees. DISCUSSION: In 1991 the City established water and wastewater impact fees to pay for needed facilities and improvements reasonably related to new development within the City. This funding mechanism is consistent with the City's policy that new development pay its fair share of the cost of building the facilities necessary to serve it. In November 1994 Council reaffirmed this policy with the adoption of the Urban Water Management Plan and revision of the water impact fees based on the most recent and reliable cost projections for future water supply projects. The actual fee amounts are based upon the size of water meter required to serve the commercial development. The San Luis Obispo Council of Governments was responsible for providing the funding and coordination for the construction of the Amtrak train layover facility necessary for the extension of the San Diegan service. Construction and operation of these facilities required the installation of a 2 inch water meter. This water meter is new and additional to the site. On September 29, 1995 a request by SLOCOG was made to the City Utilities Director to allow a short term deferral of the fees until such time as the contract between SLOCOG and the State allowing SLOCOG to expend the funds on the facility could be finalized. Payment was anticipated before the end of October (see attached SLOCOG correspondence dated September 29, 1995). At the end of October the staff contacted Mr. Ron DeCarli, SLOCOG Executive Director, and was advised that SLOCOG now intended to request waiver of the required fees. As this was inconsistent with the prior request of SLOCOG for deferral, SLOCOG was asked to expedite the request for waiver. On November 6, 1995 SLOCOG paid the required fees and also supplied a request for waiver of the required fees (see attached SLOCOG correspondence dated November 6, 1995). Since this fee waiver had not yet been through an administrative review process, City Utilities, Attorney, Community Development and Administration staff met to discuss the determination of the fees. At this meeting it was determined, based on the information provided by SLOCOG and verified by staff, that there was rationale for reducing the wastewater impact fee, but the water impact fee should remain as previously identified. This determination, along with an explanation of the fee derivation and a recommendation as to how SLOCOG may further reduce the fee was mailed to SLOCOG November 22, 1995 (see attached City correspondence dated November 16, 1995). This correspondence also included discussion of the City Council appeal process. 9- 111111 ►I1IIIIII01AkjjlU city Of san LUIS OBISp0 WaGis COUNCIL AGENDA REPORT Appeal of Water and Wastewater Impact Fees Meeting of January 2, 1995 Page 2 On November 27, 1995 SLOCOG filed an appeal of the determination with the City Clerk per City policy. Staff has met with Mr. Steve Devencenzi of SLOCOG to discuss the basis of their appeal. Mr. Devencenzi provided the following justifications: - the service could have been obtained from the existing meter serving the Southern Pacific train station but it would have required additional time, and it would have been difficult routing the water line under the tracks, - the facility is essentially a public facility and other cities on the central coast are not charging fees, and, - SLOCOG prefers to see transportation funds used for transportation purposes. SLOCOG may have additional justifications or be able to provide additional clarification at the time of the appeal hearing. At the same meeting, Mr. Devencenzi advised staff that they now intend to utilize the City sewer system for discharge of the waste from the rail cars, which was previously to be pumped and hauled by truck to Santa Maria. This would result in staff recommending the full wastewater impact fee be charged rather than the reduced fee as described in the City's November 16, 1995 correspondence. Impact Fee and Water Allocation Policies The only regulatory instrument the City has over water use is the water meter. The meter itself serves two functions. One, to record for billing purposes, the amount of water used, and two, to serve as a physical limitation as to how much can be used. In the case of new development, the developer's engineer identifies and requests the appropriate (generally minimum) size meter needed to serve the commercial development. In the case of SLOCOG and the Amtrak facility, they requested a two inch meter. This meter is in addition to the meter serving the existing train station. With the additional meter, the potential now exists to use considerably more water at the site (either now or in the future) with no additional recovery, other than the commodity charge, for the additional demands being placed on the City. City regulations do require that when a new meter is set to serve new development, impact fees as adopted by the City Council will be charged. City Planning Division review of the new Amtrak facilities determined that they were essentially a replacement of previous facilities that have been removed from the rail yard, so no water offset 3 -Z �����►iulllllllillp °�lUlll city of san LaIs OBISpo NO A COUNCIL AGENDA REPORT Appeal of Water and Wastewater Impact Fees Meeting of January 2, 1995 Page 3 (retrofitting) would be required by the Water Allocation Regulations. With SLOCOG, CalTrans, and Amtrak as the developers of the facilities, there was also the possibility that they would be exempt as a government development as provided in the Water Allocation Regulations. While our water allocation regulations and impact fee programs are closely linked, based on our current regulations, there are conditions where no retrofitting or allocation would be required but impact fees would still apply. This is the case with the Amtrak facilities being discussed. Conversely, if a commercial development were able to serve expanded uses from an existing meter, a water allocation may be required but no impact fees would be collected. This particular case has resulted in the installation of a new, additional water meter and thus, consistent with our regulations, impact fees are being required. CONCURRENCES: The Finance and Community Development Departments concur with the recommended action. FISCAL E%IPACT: Water and wastewater impact fees totaling $54,905 were paid by SLOCOG and are the subject of the appeal. The water impact fees, $38,886, and wastewater impact fees, $16,019, are enterprise fund revenues. Since enterprise funds are fully self supported through a system of adopted fees and rates, waiver of these fees will reduce the total water and sewer fund revenues by the amounts previously identified. ALTERNATIVES: Council may support the appeal by SLOCOG and waive the water and wastewater impact fees. Council may determine that it would serve a municipal purpose to support the establishment of the Amtrak San Diegan service through waiver of water and wastewater impact fees. Attachments: SLOCOG September 29, 1995 correspondence SLOCOG November 6, 1995 correspondence City November 16, 1995 correspondence SLOCOG November 27, 1995 correspondence/appeal San Lu s Obispo Council of Governments Regional Transportation Planning Agency ' o ��cadera Metropolitan Planning Organization NlorroBa., Paso Foblcs Congestion Management Agency San Luis o� spoo Safi Lui5 Obispo CourTn September 29, 1995 2 Mr. John Moss, Utilities Director The City of San Luis Obispo 955 Morro Street San Luis Obispo, CA 93401 Subject: New Water Meter for the Amtrak Train Layover Facility Dear Mr. Moss: As you are aware, the San Luis Obispo Council of Governments is responsible for providing the funding for the construction of the Amtrak train layover facility which is required for the extension of the San Diegan: It has recently come to our attention that a new water meter is necessary. A problem exits, however, because the soon to be finalized contract between SLOCOG and the State to expend the approved funds has not been finalized. Until it is finalized SLOCOG cannot be reimbursed for the water meter payment. We request that the City allow the meter to be installed in advance of payment of the required impact fees. It is reasonable to assume the payment will be made before the end of October. Thank you for your consideration of this matter. We complement your staff for being extremely helpful to us and Amtrak in facilitating this difficult project. Please do not hesitate to contact Peter Rodgers of my staff if you should have any questions at 781 -5712. Sincerely Ronald L. De Carli Executive Director r \moss.ltr GAS. y PmKf- . . . ^ - . - - - ^ - _ .'1• l"' . nn.nI A T_7 /nn -\ ^n9 AnIn A T_ /nn -\ -7b1 :z7n' SE pis Obispo Council of k3overnments Regional Transportation Plannin Agency A�Cadeao g g Y cover Bear Metropolitan Planning Organization Paso Morro B; Pismo Beach Congestion Management Agency San Luis Obispo San Luis Obispo County November 6, 1995 John Moss, utilities Director RECEIVED City of San Luis Obispo 955 Morro Street NOV / IVV3 San Luis Obispo, CA 93401 CITY couNCIL SAN 1 111.0 ni314PO CA Subject: Appeal of Water and Sewer Hookup Fees for the Amtrak San Diegan Layover Facility Dear John; thank you for the assistance your office provided in the permitting and inspection of the utilities required for Amtrak's San Diegan Layover Facility. The initiation of this service could not have been completed on schedule without your agency's cooperation. As we have indicated to you, we believe that the fees required for the water and sewer connections totaling $54,905 are excessive and we are hereby appealing the imposition of those fees at the levels we have been required to pay. As you may be aware the original intent was to connect to the existing water system located near the train station. This would have been difficult to accomplish due to the need to cross under the existing tracks and would have disturbed existing services and possibly delayed the initiation of the San Diegan service. Since water lines were accessible at Jennifer Street it was decided to connect to the City water system at that location in lieu of using the existing service connection Amtrak currently utilizes at the train station. The system required a 2" meter to allow for the high pressure that is needed for very short durations when servicing equipment and to accommodate the Fire Department required sprinklers within the small service trailer that is located at the facility. The payment of sewer hook up fees is triggered by the connection to the water system and would not have been required at all if there was not a new meter installed for water service. Since these fees are $38,886 for the water hookup, and $16,019 for the sewer it is our opinion that a reduction of these charges should be evaluated to adjust the rate to a level that more accurately reflects the city's costs to provide the additional services that are requested. 3 -s 1150 Osos St. Suite 202, San Luis Obispo, CA 93401 • Tel. (805) 781 -4219 A Fax. (805) 781 -5703 As you are also aware, the funds that are not expended for the construction of this layover facility are being.. requested to. be applied to the expenses incurred in the construction of the pedestrian: bridge that will connect Jennifer Street with Osos Street and provide safe pedestrian and bicycle connection over the railroad and the new Layover Facility. Hence, if these monies are required to be used for the water and sewer hookups they will not be available for the pedestrian facility. As these funds are taxpayer dollars dedicated to providing improved public transportation -and being used to provide for added transportation services to and from the city - it seems most appropriate that they be directed toward the development of needed public facilities that enhance public access and mobility at this site. We are working with Amtrak to develop an estimate of the water demand generated by the added use at this site and will present you with this information when we receive it. We hope this issue can be presented to your City Council at the earliest possible date to resolve the disposition of these funds. If you have any questions regarding this issue please contact Steve Devencenzi at 781- 4662. Sincerely; Ronald L DeCarli Executive Director C. SLOCOG Executive Committee SLO City Council Members SLO City Administrator Pat Merrill, San Diegan Corridor Mgr., Calif. Department of Transportation Jack Wilson, San.Diegan Product Line Mgr., Amtrak West SLOFEEAP.NOV 3_6� /,; , A111111111111111 I city of s Luis oaspo 955 Morro Street a San Luis Obispo CA 93401 November 16, 1995 Mr. Ronald L. DeCarli, Executive Director San Luis Obispo Council of Governments 1150 Osos Street, Suite 202 San Luis Obispo, CA 93401 Subject: Amtrak San Diegan Layover Facility, Appeal of Water and Sewer Hookup Fees. Dear Ron: Thank you for your prompt payment of the above mentioned fees. In response to your appeal, I have reviewed the conditions surrounding the determination of those fees. While I can offer no adjustment to the water impact fees, there is a clear rationale for decreasing the sewer impact fees. As you are aware, the San Diegan Layover Facility is a project which fell far outside the normal bounds and processes. Our standard fee procedures and project checks are designed to accommodate the normal development activities encountered by the City. This project did not have a building associated with it in this phase which would normally trigger a much more lengthy and thorough review process by the City Planning Division of the Community Development Department. In regards to the sewer impact fees, it is my understanding that the waste from the Amtrak cars will not be discharged to the sewer, but will be trucked as septage to Santa Maria. There will, however be a restroom installed at the service building for the facility. Our standard procedures establish the appropriate sewer impact fees based upon the water meter size as they are generally proportional. In this case however, it would be more appropriate to base the sewer impact fee on the smallest meter size which would be required to serve the restroom in your service building. This would result in a sewer impact fee of $2,503 instead of the $16,019 as charged. The water impact fee is and must remain appropriately based upon the meter size requested by the applicant. The cost to provide additional service includes not only the cost associated with the actual service but an appropriate share of development of additional water supplies, improvements to the water treatment plant, etc.. The meter size is determined by the applicant based on their understanding of their needs. Should you or your engineers determine that the project can be served by a smaller meter we would be happy to replace the installed two inch meter with the appropriate smaller meter and correspondingly reduce the water impact fee. I hope that this proposed resolution will satisfy your concerns relative to the water and sewer impact fees: I await your concurrence with the proposed resolution on the sewer impact fee. / The City of San Luis Obispo is committed to include the disabled in all of its services, programs and activities. V� Telecommunications Device for the Deaf (805) 781- 7410. 0 2 . ;i Once received we will process payment of the fee difference ($13,516) to you. If you wish to modify your facilities to allow for use of a smaller water meter and receive a corresponding reduction in water impact fee, please provide your proposed modifications to the Building Division of the Community Development Department for review and approval. Thank you very much for your cooperation in this matter. If you wish to continue your appeal of the fees as proposed with this correspondence you may do so by filing an appeal with the city Clerk to the City Council within ten (10) days of this correspondence. Sincerely, John E. Moss Utilities Director c: City Council John Dunn, CAO Jeff Jorgensen, City Attorney Arnold Jonas, CDD Director ������►► ������ ►��►►Illlllllllllllu1 ° " " °�i III Cl of oBispo APPEAL TO THE CITY COUNCIL In accordance with the appeals procedures as authorized by Title, 1, Chapter 1.20 of the San Luis Obispo Mu Icip I Code, the undersigned hereby appeals from the decision of rendered on which consisted of the following (i.e., explain what you are appealing and the grounds for submitting the appeal. Use additional sheets as needed.) Z� c The undersigned discussed the decision being appealed with: on Name /Department (Date) Appellant: r amerritle Mailing Address Zip Code) Home Phone Representative: Name/Title For Official Use Only: Calendared for / —O� -Y6 c: City Attorney City Administrative Officer Copy to the following department(s): Original in City Clerk's Office T& Work Phone Mailing Address (& Zip Code) Date & Time Received: RROCIVED NOV. 2 71995 $op CITY CLERK SAN LUIS OBISPO, CA -9 San Luis Obispo Council of Governments Regional Transportation Planning Agency Arroyo Grande Ao Grande Metropolitan Planning Organization Grover Beach Paso Rob3V Paso Robles Pismo Beach Congestion Management Agency San Luis Obispo San Luis Obispo County November 27, 1995 Kim Condon San Luis Obispo Acting City Clerk 990 Palm St. San Luis Obispo, CA 93401 Subject: Appeal of Water and Sewer Hook -up Fees for Amtrak San Diegan Layover Facility Dear Ms Condon: The San Luis Obispo Council of Governments hereby appeals to the City Council the rejection of our appeal of water hook -up fees, dated November 6, 1995 by Utilities Director John Moss, paid for the Amtrak San Diegan Layover Facility. Our offices received the notice dated November 16, 1995 from Mr Moss (postmarked November 22, 1995), today November 27, 1995, in which we were given 10 days to file our appeal. Our grounds for appeal are stated in our original letter, a copy of which is attached. We will be happy to provide additional information upon request. Unfortunately due to the holiday, and what appears to be a delay in sending the original notice rejecting the appeal of the water hook -up charges, we are unable to provide additional information today. Please schedule this matter before your City Council at the earliest possible date. If you have any questions please feel free to call me at 781 -4662. Thank you. ely; Stephen A. Devencenzi Senior Planner v C. SLOCOG Executive Committee R Biering, SLOCOG Legal Counsel RECEIVED NOV 2 71995 crty cI.�RM SAN W15 0915P®, 6A 1150 Osos St. Suite 202, San Luis Obispo, CA 93401 ♦ Tel. (805) 781 -4219 ♦ Fax. (805) 781-570" )