08-12-1996 Council Packet - Laserfiche WebLink

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REQUEST FOR COUNCIL ACTION DATE: August 8, 1996ie r ITEM NO: / f Department Approval: Name Ron Moorse Title City Administrator Administrator Reviewed:Agenda Section: Administrator’s Report ItenTDescription: John O’Sullivan Appeal of Local SAC and WAC Charges Local Sewer and Water Adjustment Charges On April 22, 1996, the Council adopted an amendment to the city’s fee schedule to establish local sewer and water adjustment charges. These charges are collected when a non-residential property undergoes an intensification of use that results in a significant increase in water and sewer usage. The fee amount is $900.00 per unit for additional sewer flows and $900.00 per unit for additional water usage. This is a one time charge collected at the time the building permit is issued. Appeal of Local SAC and WAC Charges The first redevelopment project to be affected by the new fees is the O’Sullivan development at 3340 Shoreline Drive. The total water and sewer adjustment charges for the development are $39,879. This is a substantial cost due to the dramatic increase in sewer and water usage resulting from the proposed development. The usage will increase from approximately 4 units to 26 units. Mr. O’Sullivan was unaware of the local SAC and WAC charges at the time of his building permit application. He strongly questioned the necessity and magnitude of the fees, and requested his payment of the fees be delayed until he had an opportunity to appeal the fees to the City Council. Staff agreed to issue the building permit without payment of the fees subject to the results of the appeal. Background of Local SAC and WAC Charges The local SAC and WAC charges initially were considered as part of a discussion regarding the consolidation of the city’s many sewer connection charges for the various sewer projects. Whenever an undeveloped residential property is connected to the city’s sewer system, that property is charged the initial amount assessed to the area for sewer service adjusted to today’s dollars. This cost generally ranges from $5,000 to $25,000 per unit. This discussion led to a discussion about how to treat commercial property that may have originally been assessed for a small number of sewer units, but is being redeveloped to a more intense use that results in significantly increased water and sewer usage. One option considered was to charge the original per-unit assessment amount for each additional unit of usage. Staff felt this amount, which could be thousands of dollars per unit, was too high.