The URL can be used to link to this page

Home My WebLink About05. Conduct hearing on Mr. Wayne Pope's appeal of staff decision re capacity fees owed for proposed accessory dwelling unit (ADU) (continued from 09-21-17) Page 1 of 5 Item 5. CENTRAL SAN BOARD OF DIRECTORS ' POSITION PAPER MEETING DATE: OCTOBER 19, 2017 SUBJECT: CONDUCTA HEARING TO CONSIDER MR. WAYNE POPE'SAPPEAL OFA STAFF DECISION THATA CAPACITY FEE IS OWED FORA PROPOSED ACCESSORY DWELLING UNIT (ADU)AT322 SOUTH THIRDAVENUE IN PACHECO[CONTINUED FROM SEPTEMBER 21, 2017] SUBMITTED BY: INITIATING DEPARTMENT: THOMAS BRIGHTBILL, SENIOR ENGINEER ENGINEERING AND TECHNICAL SERVICES- PDS-RATES AND FEES REVIEWED BY: DANEA GEMMELL, PLANNING AND DEVELOPMENT SERVICES DIVISION MANAGER JEAN-MARC PETIT, DIRECTOR OF ENGINEERING AND TECHNICAL SERVICES Roger S. Bailey General Manager ISSUE Mr. Wayne Pope submitted plans for the construction of an AD U on his parcel at 322 South Third Avenue, Pacheco. Staff determined that under current District Code, the project meets the criteria for an ADU and therefore a capacity fee is owed. District Code section 1.16.010 allows that any person may appeal a final staff decision to the Board of Directors. BACKGROUND On August 3, 2017, Mr. Wayne Pope addressed the Board of Directors during the Public Comment period. Mr. Pope explained that he would like to construct an ADU on his property at 322 South Third Avenue in Pacheco. He pointed out that under current District Code, his project would be subject to a October 19, 2017 Regular Board Meeting Agenda Packet- Page 18 of 37 Page 2 of 5 capacity fee. Mr. Pope referenced State legislation passed in 2016 which waived capacity fees for certain AD Us. Mr. Pope acknowledged the legislation does not apply to Central San, but stated that he felt that Central San should comply with the intent of the legislation. Mr. Pope was informed that District Code allows for an appeal process and that staff would assist him with an appeal should he desire. On September 8, 2017, Mr. Pope filled out a permit application and submitted a written request for waiver of capacity fees for conversion of an existing detached structure to an AD U. Mr. Pope's plans show that the existing structure is approximately 280 square feet. 2016 Accessory Dwelling Unit Legislation In 2016, the California State Legislature passed three bills dealing with ADUs and JuniorADUs. All three bills contained restrictions on the collection of capacity fees for water and wastewater. Generally, that legislation prohibits collection of a capacity fee for conversion of an existing space which is less than 1,200 square feet. Capacity fees for construction of newADUs less than 1,200 square feet are restricted to be "proportionate to the burden of the proposed accessory dwelling unit, based upon either its size or the number of plumbing fixtures." All three bills contained language which restricted the legislation to a "city, county, or city and county." Based on this language, the legislation does not apply to special districts like Central San. On December 15, 2016, staff brought the issue to the Board of Directors. The Board opted to "take no action with respect to the recent legislation on accessory dwelling units at this time. If and when the legislation is clarified as to its applicability to special districts, the matter may be revisited." Senate Bill 229 (2017) In February 2017, state Senate Bill 229 (SB 229)was introduced. SB 229 specifically expands the 2016 ADU legislation (SB 1069 and AB 2299) to include special districts. Capacity fees for JuniorADUs are covered under the expansion of the existing AD language. On October 8, 2017, Governor Jerry Brown signed SB 229. It will become effective on January 1, 2018. Central San has not received any applications for AD Us between October 8, 2017 and Thursday morning, October 12, 2017, when this position paper was finalized. Applicability of SB 229 to Mr. Pope's Project Under SB 229, Mr. Pope's project would be exempt from capacity fees after January 1, 2018. Other Inquiries and Appeals Staff has received inquires from a number of property owners regarding capacity fee exemptions for AD Us since Fall 2016. Following receipt of Mr. Pope's appeal letter, staff received an e-mail inquiry from a property owner citing the likely passage of SB 229 and asking if staff would be able to waive capacity fees for his proposed project to convert existing space to an AD U. September 21, 2017 Board Meeting At the September 21, 2017, Board of Directors meeting, a hearing was held to hear Mr. Pope's appeal. Staff and Mr. Pope made presentations. Following the discussion, the Board of Directors voted to table the matter until the October 19, 2017, meeting as it was anticipated that Governor Brown would have signed SB 229 by then. October 19, 2017 Regular Board Meeting Agenda Packet- Page 19 of 37 Page 3 of 5 ALT ERNAT IVES/CONSIDERAT IONS 1. Deny the appeal; or 2. Grant the appeal and provide direction to staff regarding capacity fees for ADU applications submitted after October 8, 2017; or 3. Provide some other direction to staff. Consideration of Capacity Fees for ADU Applications Received Prior to January 1, 2018 If the Board of Directions chooses to grant relief to Mr. Pope, they may also choose to grant the relief to any other applicants who submit applications forADUs between October 8, 2017 (the date Governor Brown signed SB 229) and January 1, 2018 (the effective date of SB 229). One option for relief would be to: • waive capacity fees for projects meeting the definition of SB 229 ADUs which involve the conversion of existing space, and • collect capacity fees for projects meeting the definition of SB 229 ADUs which involve the construction of new space and would fall under the "proportionate" capacity fee requirements. Once the specifics of proportionality had been determined and approved by the Board of Directors, the difference between the proportionate capacity fee and the capacity fee which had been collected would be refunded to the applicant. If the Board of Directors chooses to grant relief to Mr. Pope and other applicants whose projects meet the definition of SB 229 ADUs, they may also wish to indicate that the relief is not retroactive to fees paid prior to October 8, 2017. District Code and Ordinance Update for ADU Capacity Fees District Staff has been working with District Counsel to prepare updates to District Code and the Schedule of Capacity Fees, Rates and Charges to bring those items into conformance with the new requirements of SB 229. Staff anticipates that those items will be brought to the Board of Directors and a public hearing will be held in November 2017. The updated code and fee schedule would be effective January 1, 2018. FINANCIAL IMPACTS If the appeal is granted by the Board of Directors, $5,337 in capacity fees would not be collected from Mr. Pope. COMMITTEE RECOMMENDATION This item was not reviewed by a Board Committee. RECOMMENDED BOARD ACTION Hear the appeal and take one of the following actions: • Deny the appeal; or • Grant the appeal, and provide direction to staff regarding collection of capacity fees for ADUs between October 8, 2017 and January 1, 2018 ; or • Provide some other direction to staff. October 19, 2017 Regular Board Meeting Agenda Packet- Page 20 of 37 Page 4 of 5 ATTACHMENTS: 1. Mr. Pope's Appeal Letter October 19, 2017 Regular Board Meeting Agenda Packet- Page 21 of 37 Page 5 of 5 Wayne PopeWayne Pope 322 Third Avenue South Pacheco,Ca 94553 September 6,2017 Thomas Brightbill Contra Costa Sanitary Distict 5019 Imhoff Pl. Martinez,CA 94553 Dear Thomas Brightbill, My wife and I wish to convert our existing ADU (shop) into an In-law unit. I received a quote of$7,954.00 on 8/24/17 for sewer tie-in for this planned living unit. Most of this fee cost consist of the Capacity fee. I am an owner and builder of the unit and feel that the capacity fee is unreasonable given that I am converting an existing 280 sq. ft. unit to a living ADU. As per the new laws (SB 1069),existing ADU utility fees should be reasonable. I understand there is a technicality in the new Iaw in that"Districts" were not mentioned. However,it is the intent of the new law to encourage ADUs for reasons too numerous to mention here. I understand a "cleanup bill-SB2229 with included Districts next year. However, we have waited several years to this year to build our In-law only to be discouraged by the high connection fees from CCWD and CCCSD. We are appealing to you for relief from the high capacity fee which is discouraging our project. Sincerely, Te "e" October 19, 2017 Regular Board Meeting Agenda Packet- Page 22 of 37