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HomeMy WebLinkAbout0618.093(~ ~ Oecember 9". 1993 HONORABLE CITY COUNCIL Palo Alto, California 535 Bryant street (Byxbee House) --Requ2st by Applicant 'l'o Wai,,~e city Planning Entitlement Fees and for City to Assume Cost of utility Ektensions Members of the Council: Report in Brief 31 This staff report addresses a request from Mr. Sal Gicvannotto~ applicant for development of 535 Bryant street I for "Waiver of City fees associated with his applications for city assumption of the costs normally paid by a developer for extension of electric, sanitary sewer and water utilities. It is recommended that the City Council not waive the Planning entitlement fees. It is also recommended that the City council not waive the utility connection fees or system extension fees. The Regue.st On November 6, 1993, the applicant submitted a letter requesting waiver of ~ees he had paid, or would he required to pay, as part of his applications for development of 535 Bryant stceet and 6ubse~~ent developm£nt of the property. Specific fees to be waived included those for a demolition permit ($150), full cast recovery planning application fees (currently estimoted at $12~500) and new water. gas and sanitary sewer utility connection fees (estima~ed at $J,170). o~ Decemb~r 3, Mr~ Giovannotto submitted a revised request fer vaiver of the demolition permit fee and planning entitlement fees. The utility connection fee waiver was withdrawn and replaced 'With a request for the City to aSSU1r.e the entire costs of modifying gas, sanitary sewer and water services. These costs are estimated at approximately $30,000, including the original connection fees. CMR:618:93 On April 5, 1992, the council assigned to staff the development of a proposed policy regarding facilitation of public/private partnerships and an ordinance waiving fees for certain projects. A Dece~ber 9, 1993 staff report, titled -Adoption of City Policies Regarding Public/Private Partnersnips and Fee Waivers· (CMR:59S~9J, agenda item 9 on the December 13 Council agenda), responds to that assiqnment. The recoMmended fee ~aiver policy is based on the Children's Theater expansion project. Waiver of fees ".IIould be limited to construction or. other capital projects ;,,;hich, upon com.pletion! result in a new or improved public facility, building or park that would be solely c~ned or controlled by the City. For a project that ~ould result in a portion of the construction effort becoming a City facility, the ~aiver of fees could apply or.ly to the portion of the .fees applicable to the future City facility. All fee waiver requests would have to be approved by the City Council. As noted in CMR:589:93. staff has a ~ajor concern that a more flexible approach p~oviding fee waivers for projects providinq a public service, facility or benefit would lead to many fee waiver requests from both nonprofit and for-profit or9anizations~ During the course of a year, staff receiv~~ numerous fee waiver inquiries from organizations providing public services such as recreation facilities, medi~al care, child care, social and religious services, private education and below-marKet-rate housing. If the waiver of fees extends beyond city owned or controlled facilities, it \;.'i11 be very difficult to establish a rational an~ consistent fee waiver policy; and the impact on City revenues, at time3, may be significant. Staff recommends that the requested waiver of planning entitlement fees for the 535 Bryant project be denied by the city Council. The e~isting gas, water and sanitary sewer services to the eyxbee House ~ust be relocated due to the lot split proposed on the Tentative Pa·rcel Map for 535 Bryant. The existing services are inadequate in size to serve the Byxbee House and the proposed four unit developme:nt~ New services viII need to be extended from Bryant street utility Mains to a 6ervice point adjacent to the alley leading to the develop~ent and the Byxbee House. utility work to provide these new services is charged to the customer in accordance with utilities Rules and Regulations approved by the COI.lncil. The estimated cost is $7,170 .. This estimate is for constructing ser ..... ice laterals to the Bryant street right of way CHR:618:93 12{9/93 Page 2 boundaryp not &y.tending new mains up the alley to the pr~posed development and the Byxbee House. There is no acccrnmoaation in the utility R~le6 to waiver connection fees. Mra Giovannotto has now requested the City to assume all costs for providing utility service to the proposed development. To provide utility service requires extending th2 water and sanitary se~er mains from Bryant Street up the alley to the pr~posed development. This is a new request end staff has not made a detailed estimate. However, extending the mains up the alley would probably add $15,OOO-$23~OOO to the City's cost to provide service. The qas service to the original building at 535 Bryant has been installed. The existing gas service line may be oextended to pro,\ride gas service to the four unit developme.nt and the Byxbee house~ 'I-he utilities Rulss and Regulations and Service Connection Fees do not authorize system extensions of this nature at no cost to a developer. sUmmary of Re.c~~endations In summary, staff recommends that the City Council not approve the waiver o~ City Planning and Utility fees and that the developer be requir~d to pay for the. utility system extensions and modifications necessary to serve the proposed development. Respectfully submitted, ~f4ck~ KENNETH R. SCHREIBER ~ Director ot Planning and community Environment ~~ Attachments: f. (tlJ£._. / EDWk /:::r2~ ( , Director of Uti~~ties 12/6/93 letter from Jim Baer and John Baer in behalf of Sal Giovannotto CMR,61a,93 12/9/93 Page 3 December '. 1993 Ken Schreiber Direct<>r of Planning City Of Palo Alto 250 Hamilton Avenue 5th Floor Palo Alto, CA 94301 Re: Bixby House fees and Utility Hood lI;1 Dear Kpn, The purpose of Hils letta-.is ::0 reques~~ on be:..lW.f of Sal Giovannotto, in conjunction with preservation of the Bixby House that the City of Palo .-\lto eiL"er or Wal ve or reimburse the following fees: Demolition Fee Planning EntitJetne:1! $50 $12,5(,Xl In a.ddition, t.u. Giovannotto requests that the Gty of Palo Alto install sewer, waterl and g~ utility lines at its cost through the adjacent alley to a poin~ on the new residential parcel. Relocation of the utility lines is necessary only because of preservation of the Bixby House and creation of the new residential units. Mr. Giovannotto will cooperate with the City and Utilities Department in any ways necessary to accomplish the mutual goals of the City and Mr. Giovannotto. Sincerely yours., 'y , ! ,.. {Baer It91 420 Fl<,natn' StI'\.'Jt1'!, r .. iu Alt ••• Cdifumi;l 9430] 4 r :;.3 l5 .? 7 S 7 F.,,_ ~ 1 ~ ~) ~ 5·4] fJ >I RECEIVED .DEC ~ :I 199.3 ~tmeid ofP1arin.: !"~-1! ~ Err.Yonrrmt,i