DATE: February 22, 2017
TO: Franklin Board of Mayor and Aldermen
FROM: Eric Stuckey, City Administrator
Vernon Gerth, Asst. City Administrator - Community and Economic Development
Chris Bridgewater, Building and Neighborhood Services Director
Kathleen Sauseda, Housing Development Coordinator
Subject
title
*Consideration to AMEND Resolution 2017-04, A Resolution to Re-Purpose Excess Water and Sewer Taps from City-Owned Un-developable Parcels. (01/24/16 WS, 2/14/17 BOMA 6-0)
body
NOTE: The Board of Mayor and Aldermen passed Resolution 2017-04 at their February 14th meeting. The Resolution has been amended/revised (attached) to incorporate a requirement that those seeking to re-purpose the water/sewer taps submit an application seeking the allocation. In addition, the required deed restriction would need to be recorded prior to the issuance of the building permit for the housing units.
Purpose
The purpose of this memorandum is to seek consideration from the Board of Mayor and Aldermen (BOMA) of the Housing Commission’s interest in assigning the credit for abandoned water and sanitary sewer taps to entities building deed-restricted affordable housing.
Background
The City has acquired the title and demolished several buildings (residential and non-residential) during the acquisition of future right-of-way, the purchase of significantly damaged property within the floodplain, and/or when the property has been reclaimed for battlefield preservation. These properties have been abandoned and the structures demolished. The titles were transferred to the City and no future private use will be allowed. These properties have previously “bought into” the City’s water and/or sewer system and will no longer use their allotted capacity.
The Housing Commission has identified one of the barriers to the construction of new affordably priced homes are the cost of the water/sanitary sewer “tap” fees. The Housing Commission is asking consideration to allow the reuse of the capacity (Single Family Unit Equivalents SFUE) of demolished buildings after the City takes title to the property as a credit toward the construction of deed-restricted affordably priced single-family dwellings built in the City when connecting to the City’s water and sanitary sewer system.
Financial Impact
There will be no additional cost to the City as these taps were accounted for when the buildings were originally constructed. The Housing Commission proposes the previously allotted capacity be transferred to an entity, whether for-profit or non-profit, that constructs a deed-restricted affordable dwelling within the City of Franklin. The builder would still be responsible for any fees associated with the City making the connection to the water and sanitary sewer mains as required by Titles 18 and 22 of the City of Franklin Municipal Code. This would pay for the Water Department work crew to make connections and install needed equipment. The list of available abandoned water and sanitary sewer taps and SFUEs will be maintained by the Building and Neighborhood Services Department (see attachment).
Recommendation
Staff recommends approval of the Housing Commission’s proposal to offer water and sanitary sewer access fee credit(s) to entities building deed-restricted affordable housing provided abandoned water and sanitary sewer taps (SFUEs) are available.