HomeMy WebLinkAbout5/17/2000 - STAFF REPORTS (20) DATE: May 17, 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.
The City Council has worked very hard to remove actual as well as perceived
disincentives to economic development and staff recommends that the Sewer Facility
Fee 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 fee collected for a single-family home would go from $4014 to $2408.
46;*_
ALLEN F. SMOOT, AAE
Assistant City Manage -S,pec�ial Pro' cts y
APPROVED
y City Manager
ATTACHMENT:
Resolution
17A
REVIEWED BY DEPT.OF FINANCE
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 Proposition 218, adopted as a state-wide initiative on November 1996, does not
apply to pre-existing taxes, assessments and fees, 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 hard to remove actual and perceived
disincentives to Economic Development,
WHEREAS the City has determined that for the immediate future and for the period specified
herein, a lesser amount can be collected as a connection fee and not adversely affect the
City's ability to finance needed sewer treatment plant expansion, and
WHEREAS by suspending instead of amending the fee,the City Council intends to retain the
authority to lift the suspension and reestablish the full fee when needed forfacility expansion,
NOW THEREFORE BE IT RESOLVED that for the period commencing with adoption of this
Resolution through June 30, 2003, the City shall suspend collection of the full sewer facility
fee charged for construction within the City and shall for such period collectthe lesser amount
specified below(an approximate 40% reduction rounded to the nearest dollar), but reserves
the right to repeal or modify this suspension by Resolution when necessary at the direction
of the City Council for purposes of financing sewer facilities construction. Such repeal or
modification of this suspension shall not be construed as an imposition of a new or increased
fee. The existing rate and the rate charged following suspension shall be as follows:
Resolution No Suspension
19757 Rate Rate
A. Residential units (single-family, $4014/unit $2408/unit
apartments, co-op apartments,
condominiums and mobile home
park spaces).
B. Commercial and Industrial Units $388/fixture unit $203/fixture unit
Resolution Suspending 40% Sewer Facility Fee
May 17, 2000
Page Two
C. Hotel Room
Without kitchens $1744/per unit $1046/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
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