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HomeMy WebLinkAbout05.a. Hearing re 20 Camino Monte Sol, Alamo (Anne Broome)Central Contra Costa Sanitary District 144" 1 BOARD OF DIRECTORS �•a• POSITION PAPER Board Meeting Date: January 10, 2013 Subject. CONDUCT A HEARINGTO CONSIDER A REQUEST FOR RELIEF FROM THE FINAL STAFF DECISION TO ASSESS A REIMBURSEMENT FEE FOR A SECOND LIVING UNIT AT 20 CAMINO MONTE SOL, ALAMO (APN 193 - 020 -002); JOB 5542 Submitted By: Initiating Dept. /Div.: Earlene Millier, Engineering Assistant III Engineering / Environmental Services REVIEWED AND RECOMMENDED FOR BOARD ACTION: �'1 V ` 7a E. Millier T. Brightbill cs;�� Danet Gemmell ky- Ann E. Farrell General Manager ISSUE: Ms. Anne Broome, the owner of the residential property at 20 Camino Monte Sol (APN 193 - 020 -002) has requested that the Board consider providing relief from staff's final decision to assess a reimbursement fee for a second living unit constructed on the property in 2009. RECOMMENDATION: Affirm staffs decision that it is appropriate to assess a reimbursement fee for the second living unit on the property at 20 Camino Monte Sol and direct that the fee be collected. FINANCIAL IMPACTS: The Reimbursement Fee Program is provided as a convenience for installers. The District charges fees to cover the administrative costs of the program including: 1) a Setup Fee to pay for the process required to establish a Reimbursement Account; and 2) a Transaction Fee to pay for administration of the program, receiving payments and disbursing reimbursements. ALTERNATIVES /CONSIDERATIONS: The Board may: 1. Affirm staff's final decision and direct that the fee be collected; 2. Direct staff to use an alternative approach for calculation of the fee; 3. Provide relief from all or a portion of the fee; or 4. Request that staff develop additional information and continue the hearing to a future date. BACKGROUND: District Code Section 6.20.040 specifies that reimbursement fees be calculated by dividing the total allowable cost for a main sewer extension job by the total number of connections or residential unit equivalents (RUE) which could reasonably be physically connected to the sewer unless in the General Manager's judgment an alternative method of calculation is justified. The District's practice is to use RUE for all reimbursement fee calculations, unless the installer and other affected property owners have a written agreement among them to use a different method of calculation. No such agreement has been submitted to the District. N: \ENVRSEC \Position Pape rs\M i I I ier\2013\1 -10-1 3\PP re Broome Appeal 1 -10 -13 Final.doc Page 1 of 4 POSITION PAPER Board Meeting Date: January 10, 2013 subject. CONDUCT A HEARINGTO CONSIDER A REQUEST FOR RELIEF FROM THE FINAL STAFF DECISION TO ASSESS A REIMBURSEMENT FEE FOR A SECOND LIVING UNIT AT 20 CAMINO MONTE SOL, ALAMO (APN 193 - 020 -002); JOB 5542 Ms. Anne Broome, the owner of the residential property at 20 Camino Monte Sol, constructed a second living unit, as defined by the District Code (see Attachment 1) on the property in 2009, and was assessed District connection fees for the second unit including a capacity fee ($6,015) and a reimbursement fee ($15,511.53) to reimburse the installer of Job 5542 for a share of the cost of the main sewer installation. On June 26, 2012, Ms. Broome paid all of the fees owed, except for the reimbursement fee. Over the past two years, Ms. Broome has discussed the disputed reimbursement fee with successive levels of staff, and requested relief from the reimbursement fee in a letter dated September 19, 2012 to the General Manager. The General Manager issued, her final staff decision to deny the requested relief in a letter dated October 30, 2012. In accordance with District Code Section 1.16, Ms. Broome submitted a letter dated November 25, 2012 to the Secretary of the District requesting that the Board consider the final staff decision, citing a number of reasons for her request (see Attachment 2). These reasons and staffs response to each reason follows: Ms. Broome states that the project- cost - divided -by- number of RUE cost allocation model used to calculate the reimbursement fee in her case is not equitable. Her position is that since total floor area of her principal residence plus that of the "second living unit" is considerably less than the homes built by the installer of Job 5542, the reimbursement fee should at most be based on the total number of individual parcels that can be served by the sewer, rather than total number of RUEs that may ultimately be connected. Staff Response: There are a number of allocation methods that could be used to determine reimbursement fees including: • The number of RUE that could be connected; • The number of parcels that could receive service; • The total area of the parcels that could receive service; • The floor area of buildings that could be connected; and • The proportional cost of main sewer based on the distance of the connection under consideration to the District's trunk sewer. It has long been the District's policy as provided in the District Code to use RUE that could be connected, which is consistent with the approach used for assessment of capacity fees, unless there is an agreement among the installers and connectors to use another method. The Code approach is based on the generalization that each residential unit connected to a particular main sewer extension receives comparable benefit (by having access to public sewer N: \ENVRSEMPosition Papers \Miliier\2013 \1- 10 -13 \PP re Broome Appeal 1 -10 -13 Final.doc Page 2 of 4 POSITION PAPER Board Meeting Date: January 10, 2013 subject: CONDUCT A HEARINGTO CONSIDER A REQUEST FOR RELIEF FROM THE FINAL STAFF DECISION TO ASSESS A REIMBURSEMENT FEE FOR A SECOND LIVING UNIT AT 20 CAMINO MONTE SOL, ALAMO (APN 193 - 020 -002); JOB 5542 service) and since there is a broad overlap in occupancy (and sewer service demand) for different types and sizes of residences, charging a unit fee for each residential unit is both appropriate and administratively efficient. Ms. Broome states that even if reimbursement fees are determined based on RUE, her 647 square -foot "carriage house" (living space over a garage) is not a residential unit since its limited size and configuration precludes its use as a separate unit. She also states that the carriage house should not be considered a second unit since it does not have a separate address and cannot be sold as a separate unit. Staff Response: The "living space" on the Broome property meets the District's definition and was permitted by the County as a second living unit. Neither the District's nor the County's definitions require that units have a separate address or that the there be the possibility for separate sale. • Ms. Broome states that the new carriage house is a replacement for a previous carport/living unit that had been hooked up to the septic tank system on the property and should not be subject to connection fees. Staff Response: Any residential unit, whether new or replacement, is assessed connection fees when public sewer service is provided to the unit. Ms. Broome states that neither she nor her designer, Mr. Bruce Mastic, were informed of the connection fees when applying for the carriage house building permit and so, the fees should not be assessed. Staff Response: The following was stated in the final staff decision letter dated October 30, 2012: "The District's Permit Counter staff routinely informs applicants for building permits that all residential units constructed within the District will be assessed capacity fees and reimbursement fees, if applicable. Our records indicate that Mr. Bruce Mastic of Mastic Design visited the permit counter on May 11, 2009 to have his plans for the project stamped prior to submittal to the County Building Inspection Department for building permit review. At that time, the Reimbursement Fee would have been recalculated (reduced) to account for the addition of your second unit and Mr. Mastic would have been informed of the fees that would be due prior to connection of the new unit, though a written estimate was not provided. " W \ENVRSEMPosition Papers \Millier\2013 \1- 10 -13 \PP re Broome Appeal 1 -10 -13 Final.doc Page 3 of 4 POSITION PAPER Board Meeting Date: January 10, 2013 subject. CONDUCT A HEARINGTO CONSIDER A REQUEST FOR RELIEF FROM THE FINAL STAFF DECISION TO ASSESS A REIMBURSEMENT FEE FOR A SECOND LIVING UNIT AT 20 CAMINO MONTE SOL, ALAMO (APN 193 - 020 -002); JOB 5542 Though Ms. Broome disputes that Mr. Mastic was provided information on fees, there is a note in the Permit Counter record on the date of his visit indicating that the Reimbursement Fee would be adjusted to account for the change in the number of RUE to be connected to the sewer. Whether or not Mr. Mastic was given information about applicable fees or understood that connection fees would be applied in this case, the fees are nonetheless owed and should be collected. Mr. Leo Steffen, the installer of the Job 5542 main sewer extension, has been in contact with staff requesting that applicable reimbursement fees be collected by the District and disbursed to him. All potentially affected property owners were notified of the hearing by U. S. Mail. RECOMMENDED BOARD ACTION: Affirm the staff's decision that it is appropriate to assess a reimbursement fee for the second living unit on the property at 20 Camino Monte Sol direct that the fee be collected. N: \ENVRSEC \Position Papers\Millier\2013 \1- 10 -13 \PP re Broome Appeal 1 -10 -13 Final.doc Page 4 of 4 ATTACHMENT 1 Excerpt from CCCSD Code: DEFINITION OF "SECOND LIVING UNIT" CCCSD CODE SECTION 6.12.030.A.10: Residential Unit. A "residential unit" is defined as the unit of measure for the use of any parcel or portion of a parcel for exclusively residential purposes, which shall include, but not be limited to, single - family dwellings, each unit of a multiple - family dwelling (such as apartments, condominiums and townhouses), mobile home residences, and other forms of property use providing for separate, independent habitation such as in -law units, household worker quarters or "granny" units. CCCSD CODE SECTION 6.12.040.D: Additional Residential Units... In the event a separate additional residential unit is constructed on a parcel, whether or not in compliance with applicable government regulations, additional capacity fees for that residential unit shall become due. The creation of a dwelling space that accommodates an additional separate living area within a parcel, whether or not said additional separate living area is constructed within the original building or is a detached building, shall subject the parcel to assessment of applicable additional residential unit fees. An additional separate living area shall be defined as an area designed for the purpose of separate habitation that 1) will be, or can be, physically separated by a wall or door from other residential units on the parcel, and 2) contains both a bathroom and kitchen, as well as a multipurpose or bedroom area, and an exterior entrance. ATTACHMENT 2 Anne C. Broome 20 Camino Monte Sol Alamo, Ca. 94507 September 19, 2012 Ms. Ann Farrell, General Manager Central Contra Costa Sanitary District 5019 Imhoff Place Martinez, Ca. 94553 RE: CCCSD Broome Pen-nit I am contacting you for the purpose of requesting a review of the second, proposed reimbursement cost for the CCCSD permit for a structure constructed on my property in 2010. 1 received and paid an invoice in June 2012 for the application and permit fee in the amount of $6,015. 1 also received an invoice for reimbursement fees in the amount of $15,511.53 which I am respectfully requesting you to reevaluate. I apologize for not being more timely in making this request, but I had surgery on June 25, 2012 from which I have been recovering and am scheduled to have another surgery September 24, 2012. By way of background, let me provide you with the following information regarding this particular structure and my property(Parcel 193 -020 -002 in Alamo). The original property at 20 Camino Monte Sol was developed approximately fifty -seven years ago and included a home and carport/living unit which was serviced by a septic tank. My husband and I purchased the property in 1988 at which time we constructed an addition to the original house and installed a new state -of -the art septic tank. Our plans at that time were to eventually replace an existing carport/living unit with a garage containing overhead living space. We did not pursue the development of the garage until sometime in the early 2000's. About that time a builder, Leo Steffen, had purchased some acreage surrounding Camino Monte Sol for residential development. In connection with his development, he was installing a sewer line on Camino Monte Sol and wanted my husband and me to connect our property to the sewer line. We were interested in annexing to the central sewer system, not because of any functional problems with our septic system or for any cost savings, but rather for a long -term enhancement to our property. We were told by Leo Steffen that we would be assessed a pro rata charge for the cost of the sewer construction to our property but were not informed of the actual amount or the fact that we would be charged by structure rather than on an individual property basis. We discussed our plans for a garage with a living accommodation with Leo Steffen during our sewer connection meetings. My husband unsuccessfully dealt with Leo Steffen on the installation of a sewer connection for over six years only to have his efforts continually resisted through lack of cooperation and attempted fraudulent charges on the part of Leo Steffen. During this time, the costs of a sewer connection continued to increase. After my husband's death in 2008, I managed to install a sewer line on our property, using the utility easements which were legally available to me. At the time of the original sewer installation, (June 2008), the reimbursement costs to Steffen were approximately $17,000.00. I was led to believe that such a substantial payment would satisfy our reimbursement commitment to Steffen for our property and that I would not be required to reimburse him again. Had I known that the reimbursement costs to Steffen would have been so expensive, I would have retained my septic tank, which was totally dependable and had never experienced any problems. In 2010, a garage with an upstairs living accommodation which is defined by CCCSD as a "second living unit" was constructed as a replacement structure for the original carport with an attached living unit. The original carport/living unit included a half -bath, kitchen hook up, washing machine, dryer, complete utilities and was connected to the septic tank. The new living space over the garage is 647 square feet, slightly smaller than the original living unit. At the time that the sewer system was constructed on my property in 2008, a connection for purposes of hooking up this unit was also installed. The camera photography required by CCCSD for inspection would have clearly shown the stub out for this building. However, as the building was going to be replaced, no connection to the sewer line on my property was made at that time. Also, no mention was ever made by CCCSD that an additional reimbursement fee to Steffen would be charged. Only ONE lateral has been connected to the sewer system constructed by Steffen on Camino Monte Sol. I have installed and paid for all other sewer lines up the Camino Monte Sol roadway to service my property. I am requesting a review of the proposed additional reimbursement costs to Steffen assessed on my garage /living accommodation unit as well as the allocation model used to apportion those costs to my property on Camino Monte Sol. As a retired financial executive I understand and fully support the necessity of developing allocation policies and models to facilitate equitable decisions. However, what appears as a fair allocation model will not and cannot be equitable 100% of the time. 1 submit that my situation is just such a case. The model being used results in me subsidizing the Steffen Development. I am being assessed twice for my property, once for my house which is less than 4000 square feet and a second time for this 647 square foot living space over my garage which is only used occasionally for guests. Due to the size and configuration of this space, it cannot be used as "a second living unit ". Also it is a replacement for a structure which was connected to my sewer system. The proposed cost assessment for the accommodation over my garage which is connected to the sewer pipes installed by me on my property is the same as the amounts for the six homes that Steffen build which range from 6000 to 7500 square feet and sold for approximately $3,000,000 to $4.400.000. From these sales prices, it is obvious that Steffen has been adequately paid for his sewer installation and any further reimbursement from me is a subsidy and profit windfall to him and a Financial hardship on me. The proposed additional reimbursement charge to me will result in fees to CCCSD for a sewer hook -up in excess of $46.000, and after consideration of the sewer pipes I installed on the Camino Monte Sol roadway, will bring my total sewer installation costs to over $70,000. I think that you would agree that this is a very expensive cost for annexation to CCCSD. I would never have annexed to the CCCSD had I been made fully aware of the magnitude of the costs Thank you for considering this request if I can provide any additional information or if you have any questions about the facts contained in this letter, please call me at 925 -938- 4991. Sincerely, G Anne C. Broome Cc: Jarred Miyamoto- Mills, Environmental Services Division Manager S.Q. Central Contra Costa Sanitary District January 10, 2013 TO: HONORABLE MEMBERS OF THE BOARD FROM: ELAINE BOEHME, SECRETARY OF THE DISTRICIC—,)O� CC: ANN FARRELL, GENERAL MANAGER SUBJECT: CORRESPONDENCE FROM ANNE C. BROOME RE ITEM 5.a. Following is a letter and enclosures received on January 2, 2013 from property owner Anne C. Broome pertaining to the Item 5.a, the hearing to consider her request for relief from the final staff decision to assess a reimbursement fee for a second living unit at 20 Camino Monte Sol, Alamo (APN 193 - 020 -002), Job 5542. DECEIVED Anne C. Broome JAN 0 2 2013 20 Camino Monte Sol CCCSD- Secretary of the District Alamo, CA 94507 December 30, 2012 Ms. Elaine R Boehme Secretary of the District Central Contra Costa Sanitary District 5019 Imhoff Place Martinez, CA 94553 -4392 Dear Ms. Boehme, In accordance with your instructions, enclosed is a copy of the material I intend to discuss at the January 10, 2013 CCCSD board meeting. I am assuming that you will provide a copy to the appropriate board and staff members. Thank you, Sincerely, wzo.'O�-- &600� Anne C. Broome Central Contra Costa Sanitary District Board Meeting January 10, 2013 Fee Abatement Request (Parcel 193 -020 -002, Alamo) I. Aerial Views — Camino Monte Sol II. Background Information III. No notification of two reimbursements to Leo Steffen IV. Fairness of Allocation Model Wi AK POW' W- 6�p eMOM GOO& - L"Will lot- C-09* fit m II. Background Information 1988 1989 • Purchase of parcel 193 - 020 -002 in Alamo by Broome family • Property included 2,400 square foot home and a carport with living unit and storage • Both home and carport/living unit connected to septic tank. • Remodel of existing home and installation on replacement state -of -the -art septic tank to service both structures on property. Plans to replace carport/living unit deferred. Mid -1900s • Approached and requested by Leo Steffen to hook up to his proposed 2010 sewer system on Camino Monte Sol. Steffen fully aware of plans to replace carport with a garage with living unit. Informed us we would be required to make one reimbursement to him for out total property. • Dealt with Steffen for approximately 6 years attempting to connect with sewer on Camino Monte Sol. • Broome property connected to sewer system on Camino Monte Sol. Broome installed sewer pipes on Camino Monte Sol to home and connected to sewer system through one lateral. Reimbursement in excess of $17,000 made to Steffen at that time. • Camera inspection of Broome sewer installation required by CCCSD in 2010 which clearly showed connection for either existing or future living unit. V> III. No Notification by CCCSD of two reimbursements to Leo Steffen. • No notification was ever given either orally or in writing to either Broome or designated architect, Bruce Mastic; that two reimbursements to Steffen would be required for property as a result of replacing carport/living unit. • Bruce Mastic was orally informed that an additional sewer hook -up fee would be required. No estimate was provided either orally or in writing. • Additional reimbursement fee would bring my total sewer installation costs to over $70,000 IV. Fairness of Allocation Model Allocation Model used by CCCSD is not equitable in this situation: Total allowable cost of main sewer extension Divided by total number of residential units that may be connected • Garage with 647 square feet of living space is not a residential unit. • 647 square feet living unit is being allocated same cost as 7,500 square feet homes built on Camino Monte Sol by Steffen. • Garage /living unit located on same parcel of land as my house, it is utilized by me, cannot be sold as a separate living unit, and cannot be subdivided • Garage with 647 square feet of living space is a replacement for a larger carport/living unit which was previously hooked up to my septic system ap d 4 #4i &(d Af (e sC1L e, �v Tti IV/ All ar a AO AV, Nr� saL s a� s o� �d dpo/ //,D �DNr� �D�