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Home My WebLink About05.a. Consider appeal by Dr. H. Jay Kerr re request for waiver of capacity fees•f0.. HEARING TO CONSIDER DR. H. JAY KERR'S APPEAL OF STAFF DECISION REGARDING CAPACITY FEES FOR 2000 BISHOP DRIVE, SAN RAMON SUGGESTED AGENDA NOVEMBER 20, 2014 1. Staff Report 2. Hearing a. Open Hearing b. Receive Public Comments c. Close Hearing 3. Board Deliberations 4. Recommended Actions (Motion Required) a. Affirm staff's decision that it is appropriate to assess a capacity fee for the additional commercial building. Central Contra Costa Sanitary District BOARD OF DIRECTORS POSITION PAPER Board Meeting Date: November 20, 2014 Subject: CONDUCT A HEARING AND CONSIDER DR. H. JAY KERR'S APPEAL OF STAFF DECISION REGARDING CAPACITY FEES FOR 2000 BISHOP DRIVE, SAN RAMON Submitted By: Initiating Dept. /Div.: Earlene Millier, Engineering Assistant III Engineering /Environmental Services REVIEWED AND RECOMMENDED FOR BOARD ACTION: T. Brightbill — Senior Engineer D. Gemmell — Environmental Services Division Manager Kent Alm Roger S. Bailey J. Petit — Director Of Engineering Counsel for the District General Manager ISSUE: Dr. H. Jay Kerr, the owner of the commercial property at 20-00 Bishop Drive in San Ramon (APN 213 - 133 -070) has requested that the Board consider providing relief from staffs final decision that a capacity fee is owed for the additional commercial building he is constructing adjacent to an existing commercial building. RECOMMENDATION: Affirm staff's decision that it is appropriate to assess a capacity fee for the additional commercial building. FINANCIAL IMPACTS: If affirmed, the capacity fee of $2,158.20, which has already been paid by the applicant, will be retained by the District. ALTERNATIVES /CONSIDERATIONS: The Board may: 1. Provide relief for some or all of the fees. 2. Request that staff develop additional information and continue the hearing to a future date. BACKGROUND: The District collects a capacity fee from all property owners at the time a connection to the sanitary sewer is made. Capacity fees for non - residential properties are collected based on the business type and building square footage, as outlined in the current capacity fee ordinance (Ordinance 281). Under District Code Section 6.12.030 A. 1.b, if there is a change in property use or an increase in building area, then an additional Capacity Fee is owed and collected. This process is applied to all non - residential expansion projects where the "unit of measure" listed in the capacity fee ordinance is "square feet ". Dr. Kerr's architect brought plans for the new 1,580 square foot building to the District's Permit Counter in September 2014. Information submitted along with the permit application indicated that the new, detached building was to house a pet crematory being relocated from the existing space, additional crematory ovens, and storage space for veterinary supplies. Staff determined that the new building, which will have neither C:\ Users \danderson\AppData \Local \Microsoft \Windows \Temporary Internet Files \Content.Outlook \DVCG8C5G \PP Hearing H Jay Kerr Appeal 11 -20 -14 Final.docx Page 1 of 2 POSITION PAPER Board Meeting Date: November 20, 2014 subject: CONDUCT A HEARING AND CONSIDER DR. H. JAY KERR'S APPEAL OF STAFF DECISION REGARDING CAPACITY FEES FOR 2000 BISHOP DRIVE, SAN RAMON water nor sewer service, and is detached from the existing veterinary clinic, represented an expansion of the existing commercial use. Permit Counter staff reviewed the plans and considered two user groups when calculating the capacity fee: Veterinary Clinic and Light Industrial. Staff determined that the appropriate rate was Light Industrial based largely on the new building's lack of water service or a sewer connection thus preventing the key activities of a veterinary clinic, patient examination and treatment, in the new building. If water and sewer are added in the future, the plans will come through the Permit Counter and additional capacity fees can be collected at that time. Even without a sewer connection, however, the expansion of a business space represents an added burden because more business can be conducted in a larger space than a smaller one. The District's capacity fee factors cover a wide range of business activities at a given location and were derived from strength and flow data from actual businesses that generally include space for storage and other activities that do not themselves impose a burden on sanitary sewer facilities. These activities are part of the business and therefore the square footage provided for these activities must be included in the calculation of capacity fees. A Special Study could be conducted to determine the capacity fee based on actual water use; however, staff would need to compare "before and after" water use data over a five year period to determine RUEs based on an increase in water consumption, assuming such increase was attributable to an increase in business activity resulting from the additional space. Staff assessed the capacity fees at the Light Industrial rate (0.228 RUEs per 1,000 square feet resulting in a capacity charge of $2,158.20) rather than the Veterinary Clinic rate (0.637 RUE per 1,000 square feet resulting in a capacity fee of $6,033.73). The $2,158.20 fee was paid and on September 20, 2014 the property owner requested in writing that the fee be waived. Staff formally denied the request for waiver of capacity fees. Dr. Kerr is appealing staff's final decision to the Board. RECOMMENDED BOARD ACTION: Affirm staff's decision that it is appropriate to assess a capacity fee for the additional commercial building. Attached Supportinq Documents: 1. Letter dated September 20, 2014 from Dr. H. Jay Kerr requesting relief from capacity fees. C:\ Users \danderson\AppData \Local \Microsoft \Windows \Temporary Internet Files \Content.Outlook \DVCG8C5G \PP Hearing H Jay Kerr Appeal 11 -20 -14 Final.docx Page 2 of 2 Mr. Bailey; I am writing in regard to the plan check on our construction project at 2000 Bishop Drive in San Ramon. The CCCSD application number is 14 -1371. We are asking that the assessed "Cap Fee" of $2158.20 be waived for this project. Please note that we have already paid the cap fee because our entire project would have otherwise been delayed. However, we have paid under protest and are requesting that the Board of Directors review our appeal for a waiver of the "Cap Fee ". Our new building is defined by the City of San Ramon Planning Department as an "accessory building ". Our City officials were surprised by your fees for this building. The entire planning process by the City of San Ramon for this building cost significantly less than your fees! Our local Fire District charged application review fees that totaled less than a quarter of your fees. Our new building has no water supply and no sewer hookup. The new building will not be open to the public. We do not anticipate adding employees for the new building. In short, our new building will NOT impact the CCCSD system. In conclusion, we are requesting a waiver of the "Cap Fee' . Your consideration is appreciated and I would be happy to respond to any questions. Sincerely, H. jay Kerr 925-997-9990 hjaykerrcbyahoo.com cc: CCCSD Board of Directors Capacity Fees 2000 Bishop Drive, San Ramon Earlene Millier Engineering Assistant III November 20, 2014 Central Contra Costa Sanitary District Capacity Fees - 2000 Bishop Drive, San Ramon • Bishop Ranch Veterinary Center & Urgent Care t • Connected to sanitary sewer in 2000 • Approx. 14,000 square foot veterinary clinic S.a. 1 Capacity Fees - 2000 Bishop Drive, San Ramon • September 2014 application for additional building with no water or sewer connections and no structural connection to existing building • The building will house a pet crematory being relocated from the existing building, an additional pet crematory, and storage space for veterinary supplies • Staff determined that the new building represented an expansion of an existing commercial facility • Capacity fees were assessed at the "Light Industrial" rate factor • Fees were paid and the business owner is now requesting a refund of the capacity fee of $2,158.20 Questions...? 2