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HomeMy WebLinkAbout03. Conduct a hearing to appeal a staff decision re fees owed for an accessory dwelling unit at 8 Charles Hill Circle, Orinda Page 1 of 3 Item 3. CENTRAL SAN BOARD OF DIRECTORS POSITION PAPER MEETING DATE: MARCH 16, 2023 SUBJECT: CONDUCTA HEARING TO CONSIDER MS. SHEEREEN MAJD AND MR. MOHAMMAD REZA ABI DIAN'S APPEAL OF A STAFF DECISION THAT CAPACITY FEES I N THE AMOUNT OF $6,098.40 ARE OWED FOR AN ACCESSORY DWELLING UNIT (ADU)AT 8 CHARLES HI LL CIRCLE IN ORI NDA SUBMITTED BY: INITIATING DEPARTMENT: THOMAS BRIGHTBILL, SENIOR ENGINEER ENGINEERING AND TECHNICAL SERVICES- PDS-RATES AND FEES REVIEWED BY: DANEA GEMMELL, PROVISIONAL DIRECTOR OF ENGINEERING AND TECHNICAL SERVICES rat". Roger S. Bailey Kenton L. Alm General Manager District Counsel ISSUE Ms. Sheereen Majd and Mr. Mohammad Reza Abidian submitted a Central San application for the remodel and expansion of an existing AD constructed by a previous property owner on their parcel at the address stated above. Central San staff determined that under the current District Code and Capacity Fee schedule, sewer Capacity Fees of$6,098.40 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 December 28, 2022, Ms. Sheereen Majd and Mr. Mohammad Reza Abidian submitted an application for the remodel of a single-family residence containing an existing AD on their parcel at 8 Charles Hill March 16, 2023 Regular Board Meeting Agenda Packet- Page 29 of 82 Page 2 of 3 Circle in Orinda. Staff determined during the review that the existing ADU had been constructed without permits from Central San or payment of Capacity Fees to Central San. 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 forADUs 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 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. • 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 I n 2022, the Board granted appeals by the owners of 3 other residential parcels with unpermitted ADUs 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. Majd and Mr. Abidian are requesting the same consideration. As part of the appeal process, staff committed to developing draft language for a District Code change relating to Capacity Fees for unpermitted ADUs. The draft language has been prepared and will be presented to the Board of Directors at a public hearing scheduled for the April 6, 2023 Board of Directors meeting. ALTERNATIVES/CONSIDERATIONS The Board of Directors could: 1. Grant Ms. Majd and Mr. Abidian's appeal; or (Staff Recommends) 2. Deny Ms. Majd and Mr. Abidian's appeal; or 3. Provide some other direction to staff regarding the appeal. March 16, 2023 Regular Board Meeting Agenda Packet- Page 30 of 82 Page 3 of 3 I n addition, the Board of Directors may wish to consider providing direction to staff about a future change to District Code regarding Capacity Fees for unpermitted ADUs created by previous property owners. FINANCIAL IMPACTS If the appeal is approved by the Board and the Capacity Fee is reduced to $1,677.60, then $4,420.80 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 Tie-In GOAL ONE: Customer and Community Strategy 1—Deliver high-quality customer service GOAL TWO: Environmental Stewardship Strategy 1 -Achieve compliance in all regulations March 16, 2023 Regular Board Meeting Agenda Packet- Page 31 of 82