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HomeMy WebLinkAbout11/20/2001, B5 - APPEAL OF AN ADMINISTRATIVE DECISION TO DENY A WAIVER OF SEWER IMPACT FEES AT 175 AND 189 SERRANO ( 1 j acEn6A RepoRt �N as C I T Y OF SAN LUIS OBISPO FROM: John Moss, Utilities Directolr Prepared By: David Hix, Wastewater Division Manager SUBJECT: APPEAL OF AN ADMINISTRATIVE DECISION TO DENY A WAIVER OF SEWER IMPACT FEES AT 175 AND 189 SERRANO HEIGHTS CAO RECOMMENDATION Deny a request for waiver of sewer impact fees from Mr. Gregg Rennick for the properties of 175 and 189 Serrano Heights. DISCUSSION Recently the septic system at 175 Serrano Heights began to fail and the owner, Mr. Gregg Rennick, contacted the City to inquire about connection to the sewer for his property and his neighbor's property at 189 Serrano Heights. Mr. Rennick would like the Council to consider waiving the wastewater connection fees of $2,795 for 175 and 189 Serrano Heights ($5,590 for both properties) because of financial hardship and the belief that his taxes may have paid for these connection costs. There is no evidence in City records to support that Mr. Rennick or his neighbor participated in any sewer assessment district for the subject properties. The City requires properties that are within 200 feet of a sewer mainline being connected to the sewer. Exceptions to this have occurred when a previously developed area has been annexed. Property owners are allowed to, connect to the sewer at their convenience or when their septic system needs replacement. In these cases the owner must still pay sewer impact fees. Although no impact fees were in place when 175 and 189 Serrano Heights were developed, a sewer impact fee was adopted by the City in 1991 and applies to all properties that require or request connection after its adoption. These two properties have not paid any fees for connection or development of the City sewer system through taxes or any other assessment and are not being required to connect to the sewer because they are more than 300 feet away from the City's mainline. If these properties choose to connect they must first pay the wastewater impact fee and construct a private sewer lateral to the public sewer main. Staff believes that these properties are among the last in the City to remain on septic. While staff feels that it would be desirable to eliminate any remaining septic systems in the City and have the properties connected to the City sewer, we do not believe that it is appropriate to waive the impact fees for doing so. Sewer impact fees were developed to Council Agenda Repon-=Waiver of Wastewater Impact Fees Page 2 mitigate the impact of new connections to the collection system and Water Reclamation Facility (WRF). The fees are needed to finance the existing or new facilities and improvements needed to serve the new connection and to pay for the new user's fair share of these costs. FISCAL IMPACT Waiver of the sewer impact fee for 175 and 189 Serrano Heights would result in$5,590 not being collected for the sewer fund. ALTERNATIVE 1. Waive the sewer impact fees. Staff does not recommend this because it is the City's policy that wastewater-impact fees be collected for any new connection to pay for that dwelling's or facility's appropriate share of costs. ATTACHMENT Letter from Mr..Gregg Rennick dated August 1, 2001 h:\dhix\Rennickfee.car V U Attachment Gregg Rennick 175 Serrano Hts. San Luis Obispo, Ca 93405 Ph# (805)440-5013 August 1,2001 Members of San Luis Obispo city council RE: Request to grandfather sewer lateral Dear Members of San Luis Obispo city council; I am writing to you in request that you grandfather my and my neighbors' residence at 175 and 189 Serrano Hts., San Luis Obispo and waive the fee for connecting to the sewer main of the city. Both of our residences were built in the 1950's. They are one of the last households in the city to be on a septic system. My leach field is partially clogged with roots and will soon be in need of repair, at a cost of about$1500.00. It is well over 300 ft to the city main and therefore not subject to city requirements that state that if I were within 200 feet I would have to connect to the city system. If you check the tax records I am sure you will find receipts for the tax money paid by these two residences for the development of the city sewer system. Therefore it seems only right that we are grand fathered in and the fee waived. It is my and my neighbors desire to be connected to the city system. Together we would share the cost of a plumbing contractor. It would not cost me much more than repairing my field- The eldThe $2700.00 sewer impact fee per household makes the project unfeasible for my neighbor and myself,as the cost would be twice as much as just repairing the field For my neighbors who are and elderly couple connecting to the city it is but a convenience. Their system works fine and the cost would be too much for them. As for my wife and I we have two young children and we both work in the city of San Luis. I am sure you all know how difficult it is to afford to live in this special place. $2700.00 is a lot of money to us and will weigh heavy on my decision on how to proceed Thank you for your time and consideration. Sincerely, Gregg Re ck RECEIVED tPA ) 2001 ASLO CITY COUNCIL S-3