HomeMy WebLinkAbout5/3/2000 - STAFF REPORTS (15) DATE: May 3, 2000
TO: City Council
FROM: Assistant City Manager-Special Projects
SEWER FACILITY FEE- PARTIAL SUSPENSION
RECOMMENDATION:
It is recommended that City Council suspend 40%of the existing Sewer Facility Fee,
commencing immediately and running through June 30, 2003.
BACKGROUND:
The City s Sewer Facility Fee is charged at time of Building Permit and was
established via Resolution No. 11247 In November of 1974. The fee is seen as a
disincentive to economic development within the City. The revenue from the
collection of the fee has averaged$500,000 per year and has been utilized for debt -
service payment on the existing sewer plant bonds. A pure Interpretation of
Proposition 218 and the voters'direction from Proposition°U°will result in bond debt
service coming from the sewer service rate base.
The City Council has worked very hard to remove actual as well as perceived
disincentives to economic development and staff recommends thatthe Sewer Facility
Charge disincentive be removed via a partial suspension of the fee. The attached
Resolution would suspend 40% of the existing Sewer Facility Fee for the period
commencing upon adoption of the Resolution through June 30,2003. As an example,
the The collected for a single-family home would go from $4014 to$2408.
ALLEN F. SMUOT,AAE
Assistant City ManaosrwSpeclal Project
APPROVE
ltY Manager
ATTACHM NT:
Resolution
BYWEOF
RESOLUTION NO.
OF THE CITY COUNCIL OF THE CITY OF PALM SPRINGS,
CALIFORNIA,SUSPENDING COLLECTION OF40%OF THE
CITY SEWER FACILITY FEE CHARGED FOR
CONSTRUCTION WITHIN THE CITY LIMITS, FOR THE
PERIOD COMMENCING WITH ADOPTION OF THIS
RESOLUTION TO JUNE 30, 2003.
WHEREAS the City established in November of 1974, via Resolution No. 11247, Sewer
Facility Fees to be charged to all new construction at the time of Building Permit Issuance;
and
WHEREAS the established fee Is higher than other local jurisdictions and is viewed as a
disincentive to economic development of the community; and
WHEREAS the City Council has worked very hand to remove actual and perceived
disincentives to Economic Development,
NOW THEREFORE BE IT RESOLVED that for the period commencing with adoption of this
Resolution through June 30,2003, 40%(rounded to the nearest dollar)of the Sewer Facility
Fee charged for construction within the City limits shall be suspended as illustrated below:
Resolution No Suspension
19757 Bate Bate
A. Residential units (single-family, $40141unit $2408/unit
apartments, co-op apartments,
condominiums and mobile home
park spaces).
B. Commercial and Industrial Units $388/fixture unit $203ftdure unit
C. Hotel Room
Without kitchens $1744/per unit $1048/per unit
With kitchens $1998/per unit $1198/per unit
D. Recreational Vehicles Spaces $3121/space $1873/space
ADOPTED this day of 2000.
AYES:
NOES:
ABSENT.
ATTEST: CITY OF PALM SPRINGS, CALIFORNIA
By:
City Clerk City Manager ��
REVIEWED&APPROVED AS TO FORM