DATE: February 13, 2019
TO: Board of Mayor and Aldermen
FROM: Eric Stuckey, City Administrator
Mark Hilty, Assistant City Administrator - Public Works
Michelle Hatcher, Director, Water Management
SUBJECT:
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Consideration Of Resolution 2019-19, A Resolution to Deny the Request To Waive Title 18 For 107 Chester Stevens Court (Map 079M Parcel 00400); 111 Chester Stevens Court (Map 079M Parcel 00500); and 115 Chester Stevens Court Map (079M Parcel 00600) for the Associated Impact Fees Related to Sewer Connections. (02/26/19 WS)
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Purpose
The purpose of this memorandum is to provide information to the Franklin Board of Mayor and Aldermen (BOMA) concerning the residents at the above addresses request to waive the Wastewater Impact Fee required per City of Franklin Municipal Code Title 18 and Appendix A - Comprehensive Fees and Penalties.
Background
The owners of the above referenced properties desired to connect to the City of Franklin Sanitary Sewer System. In February of 2017, a sewer extension plan to extend a public sanitary sewer main to serve the properties was submitted for review and approved by the City of Franklin. In April 2017, these properties were granted Sanitary Sewer Availability contingent upon the property owners paying for the extension of the City’s sewer system in addition to the payment of all required fees for connection to the system.
In January 2019, the three property owners sent a letter to the Board of Mayor and Alderman indicating the project costs for the extension of the City’s main exceeded their initial estimations, and that recently they had been told they would be required to pay the tap and impact fees for the connection to the system. This letter is attached. Staff has reviewed this request and believes that a waiver of impact fees is not consistent with the existing ordinance. The impact fee ordinance is designed to allocate costs to new users for City’s prior investment in treatment capacity and the broader collection system. It is staff’s assessment that these new customers should pay their portion of system development investments previously made by the City and its rate payers.
Financial Impact
The financial impact to the City, if the impact fees were waived for these property owners, would be $4,019 per property owner and $12,057 in total for the three properties.
Recommendation
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Staff recommends denial of this waiver and disapproval of Resolution 2019-19. Impact fees are in part used to recapture costs associated with the construction of transmission and treatment capacity. Although the property owners have paid for the local collection system, the work doesn’t offset the purpose of the impact fees for the broader system and the treatment facility.