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Home My WebLink About08. Conduct a hearing to consider an appeal of a staff decision of capacity fees owed for an Accessory Dwelling Unit at an Orinda property Page 1 of 4 Item 8. CENTRAL SAN BOARD OF DIRECTORS POSITION PAPER MEETING DATE: DECEMBER 15, 2022 SUBJECT: CONDUCTA HEARING TO CONSIDER MS. THERESA ELLIS' APPEAL OFA STAFF DECISION THAT CAPACITY FEES IN THE AMOUNT OF $7,801.72 ARE OWED FOR AN ACCESSORY DWELLING UNIT (ADU)AT 51 CHARLES HILL ROAD IN ORI NDA 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 Roger S. Bailey Kenton L. Alm General Manager District Counsel ISSUE Ms. Theresa Ellis submitted a Central San application which requires the legalization of an ADU constructed by a previous property owner on her parcel at the address stated above. Central San staff determined that under the current District Code and Capacity Fee schedule, sewer Capacity Fees of $7,801.72 are owed. District Code Section 1.16.010 allows that any person may appeal a final staff decision to the Board of Directors (Board). BACKGROUND On September 6, 2022, Ms. Theresa Ellis submitted plans to Central San for the remodel of an existing 681 square-foot ADU on her parcel at 51 Charles Hill Road in Orinda. Staff determined during the review that Central San had received plans for a residential addition in 2001. Documents from Central San and December 15, 2022 Regular Board Meeting Agenda Packet- Page 53 of 145 Page 2 of 4 the City of Orinda both show that the residential addition was to have "no kitchen." Additional documents from the City of Orinda dated after the Central San permit was closed make reference to a garbage disposal and a dishwasher within the project. Changes during construction resulted in the project becoming what is now an ADU under Central San's District Code and Capacity Fee schedule. Ms. Ellis had believed that the ADU had been properly permitted by both the City of Orinda and Central San. She was not aware that the scope of the project had changed during construction and that Central San never had the opportunity to review the changes and collect Capacity Fees for the project. Central San Capacity Fees for ADUs On October 8, 2017, Senate Bill 229 (SB 229)was signed into law. SB 229 extended certain reductions in Capacity Fees for ADUs to special districts such as Central San. In response to SB 229, Central San held a public hearing on November 16, 2017 to amend the District Code and revise the Capacity Fee schedule effective January 1, 2018. The revised District Code included Section 6.12.030 (E), Capacity Fees for Unpermitted Work, which states: 1. Capacity Fees for all other uses for which the District did not receive a request for a connection permit or building plans for review shall be charged at the rate that is current at the time of discovery. 2. Capacity Fees for an Accessory Dwelling Unit constructed prior to January 1, 2018 for which the District did not issue a permit shall be charged as a multi-family residential unit. Several factors resulted in the specific language used in District Code Section 6.12.030 (E)(2) including: • The new State Law did not address work done prior to the effective date; • The new State Law included provisions that • Projects which involved conversion of an existing space into an ADU were generally exemptfrom paying sewer Capacity Fees, and • Projects for new construction of an ADU would be subject to payment of a significantly reduced sewer Capacity Fee; and • Central San staff believed that property owners who failed to obtain permits for their projects should not benefit from new fee reductions when other property owners who obtained permits for projects prior to the ADU legislation paid sewer Capacity Fees without any discounts. The Current Appeal On November 3, 2022, the Board of Directors (Board) granted an appeal to the owners of a residential parcel with an unpermitted ADU which allowed the property owners to pay the reduced Capacity Fee for an ADU rather than the full Capacity Fee specified in Central San's District Code. Ms. Ellis is requesting the same consideration. Under the current District Code and sewer Capacity Fee schedule, Capacity Fees of $7,801.72 are owed. If the current capacity fees for the new construction of an ADU were applied to her project, the Capacity Fee would be $2,661.98. December 15, 2022 Regular Board Meeting Agenda Packet- Page 54 of 145 Page 3 of 4 ALTERNATIVES/CONSIDERATIONS The Board could: • Grant Ms. Ellis' appeal; or (Staff Recommends) • Deny Ms. Ellis' appeal; or • Provide some other direction to staff regarding the appeal. FINANCIAL IMPACTS If the appeal is approved by the Board and the Capacity Fee is reduced to $2,661.98, then $5,139.74 in Capacity Fees would not be collected. COMMITTEE RECOMMENDATION District Code Section1.16.030 states that appeals of staff decisions are to be heard "at a regular meeting of the Board of Directors." Therefore, this matter was not reviewed by a Board Committee. RECOMMENDED BOARD ACTION Conduct the appeal hearing and provide direction to staff by selecting one of the alternatives summarized above. Strategic Plan re-In GOAL TWO: Environmental Stewardship Strategy 1 -Achieve compliance in all regulations ATTACHMENTS: 1. Written appeal received November 27, 2022 December 15, 2022 Regular Board Meeting Agenda Packet- Page 55 of 145 Page 4 of 4 Hello Thomas and Danea Re: 51 Charles Hill Road, Orinda,ADU remodel Hello, I hope this email finds you well and everyone had a wonderful Thanksgiving. I am writing to Centra Sanitation to request a review of the high fees being assessed to my project. I am more than willing to pay a fee however with this email I am requesting the fees be reduced to the date the error was made by the previous owners in not obtaining another approval from Central Sanitation. There are plans that received Central Sanitation's approval for the ADU,which at that time was considered a studio/craft room, however those plans did not include the kitchen. My son and I purchased this property in 2019. The ADU was marketed as "permitted". I have permits from the City of Orinda and while I don't have all the documents,the City of Orinda, and the Contra Costa Planning Department both signed off on the addition of the kitchen in/around 2002. It came as quite a surprise to learn that Central Sanitation considered the ADU "unpermitted". The previous owners had to go to some lengths to get the kitchen approved within the ADU. At that time the City required they file a deed restriction stating that a family member was to reside on the property at all time, either in the ADU or the main house. I am not sure where the "hiccup" occurred for there not to be a Central Sanitation approval. I would have thought there was some sort of check list prior to finalizing a permit and either the City or the County would have caught that the Central San approval was missing prior to issuing the final permit. I agree with the appeal from Misha and Jodi in that I don't understand why I am being asked to pay such a high fee given that I was not the one to build the unit nor was I the one that lived here for the last 20 years without it being fully permitted. It does feel punishing as a new homeowner when all I am trying to do is go through the permitting process for the remodel legally and honestly. Misha and Jodi's case is a bit different in that they purchased a home knowing the unit was illegal, and they wanted to make it legal. I purchased a home with the understanding the ADU was legal (permitted) and had proof of final permits. Under no circumstance would I have known that the lack of a Central Sanitation stamp for the addition of the kitchen would in effect make it "illegal or unpermitted". I honestly thought that a bathroom would put more "strain" on sewer lines than a kitchen sink. I even mentioned that to Thomas, and it wasn't until he explained the "capacity" issue that I understood. As in the appeal from Misha and Jodi, I am trying to do the right thing. I hope we can work together to determine a reasonable fee for me to be able to move forward and afford the remodel on my ADU - which I live in full time. Thank you for your consideration. Terri Ellis December 15, 2022 Regular Board Meeting Agenda Packet- Page 56 of 145