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HomeMy WebLinkAbout9 Appeal of fees Agenda Item # Memorandum To: Board of Directors From: Peter Holzmeister Date: November 6, 2001 Subject: Appeal of Mark Steiner Attached is correspondence from Mr. Mark Steiner in which he appeals the District policy that fees paid are good for one year. Our water facilities and connection fees were increased in May 2001. In order to pay the lower fees, the fees in effect prior to the increase, Mr. Steiner paid his fees on May 5, 2001. Attached is a copy of our policy that says if a developer pays fees he must have received permanent connection within one year or be subject to payment of increased connection fees. Mr. Steiner paid $27,000 in water connection fees, which was the amount due under the old rate (sixty units times the old fee of $450 per unit). On May 6, 2002, Mr. Steiner would be asked to pay to the District an additional $32,400 in water connection fees; our water connection fee increased to $990 per unit (60 units times $990 less the $27,000 already paid equals $32,000) The question before you is (1) whether to waive District policy or(2) apply the District policy If you waive the policy Mr. Steiner will save $32,000. If your retain the policy he will end up paying an additional $32,000 after May 6, 2002. CHAPTER 5.28 WATER FEES AND CHARGES Sections: 5.28.010 Water Service Fees 5.28.015 General 5.28.020 Connection Fee 6.28.030 Tapping Fee 5.28.040 Facilities Fee 5.28.010 Water Service Fees -Any customer requesting work for their sole convenience will be charged the actual cost of the service performed, including material, labor, equipment and overhead, and in no instance less than $25. This policy is applicable, but not limited to, the following services: 5.28.010.1 Relocation of water services. 5.28.010.2 Disconnection or reconnection of service. 6.28.010.3 If a customer requests the water to be shut off and/or reconnected because of frozen pipes, there is no charge during regular business hours. 5.28.010.4 If a customer backfills the trench when installing a new service prior to the District installing its facilities. (Res. 8406) 5.28.015 General -All applicants for water service are subject to three charges when applicable: a connection fee, tapping fee, and a facilities fee, in accordance with Water Connection and Facilities Fee Schedule C-1. 5.28.015.1 Fees paid will be effective for a period of one year from the date of application. Applicant may be subject to payment of increased fees if the permanent connection has not been made within the specified time period. 5.28.015.2 This rule applies to those applicants who have previously paid connection fees but have not yet received permanent service. Such applicants may be subject to payment of increased connection fees if the permanent connection has not been made within one year from the effective date of this rule. (Rule effective August 18, 1986.) November 2, 2001 Mark A. Steiner 5006 Sunrise Boulevard Fair Oaks, California 95628 Dear Mr. Steiner; We spoke on the telephone yesterday about your objection to signing our water development agreement because of the requirement that you would be expected to pay updated facilities and connection fees if your project was not at the point of permanent connection by May 5, 2002. This requirement stems from our policy that fees paid are good for one year from the date paid. You stated that you could not achieve permanent connection, as required by our policy, by May 5, 2001. We set up a meeting to discuss your concerns for 9:00 AM on Thursday, November 8, 2001. You said that you would like to proceed with construction of the ten-inch water line at this time pending resolution of the development agreement issue on November 8. 1 agreed to allow construction of the ten-inch line at this time without an executed development agreement in good faith to help you try to meet the May 5, 2002 deadline. We had a second telephone discussion today in which you made clear to me that if the development agreement issue is not resolved to your satisfaction at the November 8 meeting you would commence legal action. In light of that discussion I feel that I should advise you that I will not waive the one year limitation on the water facilities and connection fees. You can make formal application to the Board of Directors to waive that requirement by addressing that request to the President of the Board, Truckee Donner PUD, P.O. Box 309, Truckee, California 96160. If we receive that request by Wednesday evening, November 7, 2001 the Board may be able to act on it that evening. If you proceed with construction of the ten-inch water line at this time, without having a fully executed development agreement with this District, you do so at your own risk. District staff will not inspect construction of the line prior to execution of the development agreement, and you will be required to re-excavate the line for purpose of inspection when the development agreement issue is resolved. Very truly yours, Peter L. Holzmeister NOV-05-01 NON 16:27 M A STEINER DEVELOPMENT FAX NO. 9169621662 P. 01/04 X M . A. Stainer Development, Inc. November 5, 2001 President of the Board c/o Peter Holzmeister Truckee Donner Public Utility District P. O. Box 309 Truckee, CA 96160 Re: Riverview Townhomes—Truckee Dear President of the Board and Peter Holzmeister: On April 11, 2001, 1 received full entitlements from the Town of Truckee to construct Riverview Townhomes. This sixty-unit housing development incorporates a well-planned architectural theme with numerous design amenities. Both the Town of Truckee Planning staff and our development team have worked together to create housing that is an attribute to the community. It was important that we pay the existing water fees by May 4. 2001, so that we could lock in under the existing rates. In order to accomplish this goal, we moved forward with our site improvement plans and architectural working drawings before we even received approval on April 11th. This was very ambitious, since it was possible that we could have not received approvals and all of the extra effort could have been in vain. We were extremely fortunate that we did receive approvals and in turn submitted for a grading permit. At the same time, we moved forward to obtain a development agreement with Truckee-Donner Public Utility District in order to not only lock in the old fees as previously mentioned, but start construction as soon as possible. In order to achieve our goals, our entire team including the civil engineers and architects have worked overtime and Saturdays and Sundays. We felt that the deadline of May 4th was not an insurmountable obstacle and working together with numerous individuals at the District, we were successful; we signed the development agreement on May 4`h and paid fees for the entire project in the 7t1fBf 66 karrfise Blvd., Su, e 1t12 e Fair Oaks, CA 95628 • E9163 �362-3A77 0 Fax (016) 962-t2 NOV-05-01 MON 16:28 M A STEINER DEVELOPMENT FAX NO. 9169621662 P. 02/04 Truckee-Donner Public Utility District Page 2 November 5, 2001 amount of$85,034. 1 appreciate our team's and the District staffs efforts to accomplish this Herculean task. On page 10 of the development agreement, the District acknowledged the effort that we put forward, but also 'condition two" stated that the entire project needed to be completed by May 5, 2002, in order to be grandfathered in under the old fee schedule. I felt compelled to protest"condition two", since it was physically impossible to complete the project in twelve months. it also states in the development agreement that the District does nave discretion"to increase any and all fccs and costs to equal the district's current charges. On October 25, 2001, after a meeting with other District staff members, Mike Connell suggested to me the possibility of just completing the water system, installing the meters and servicing the building pads even though all of the units are not completed. I felt this was an excellent remedy to the situation, but it is still impossible since from November 15 to May 1, 2002, 1 am not allowed to install any water lines or service_ My request Is that the District allow me a six-month extension past May 5, 2002, to install the water lines, meters and services to the building pads for the entire project. I understand that I would have to pay the monthly services fees, even though all of the buildings are not completed. Thank you for your consideration of my request. Please feel free to call if I can answer any questions. Sincerely yours, ��n Mark A. Steiner President M. A. Steiner Development, Inc. Managing Member of Riverview Truckee, LLC NOV-06-01 NON 16:29 N A STEINER DEVELOPMENT FAX NO. 9169621662 P. 03/04 E A. Steiner Development, Inc. November 5, 2001 Mr_ Peter Holzmeister Truckee Donner Public Utility District P. O. Box 309 Truckee, CA 96160 Re: Riverview Townhomes — Truckee Dear Peter I request that you reconsider your decision to cancel our oral agreement as outlined in your November 2, 2001 letter. It is very important that I complete the fire service in order to continue construction of the Riverview Townhome development. This is a requirement of the Fire Marshall, Bob Bena. After our agreement, I mobilized in order to install the water line before expiration of my grading extension, which is November 15tn . I also have a weather window consideration, since my extension for grading could be rescinded upon precipitation conditions. It is possible for me to hire a private inspector that is approved by the District for inspections? sincerely yours, Mark A. Steiner President M. A. Steiner Development, Inc. Managing Member of Riverview Truckee. LLC iOOO Sunrise..91%1d., ,Stsite 102 ® Fair Oaks, CA 95629 - (916) 962-877 • Fax (916) 962-1602 Nov-06-01 17 : 28P Sylvester Engineering Inc 530 265 B736 P. 03 101 PRGYIOENC£MINE RJPO tii;M 202 NE .XCR Q'U'01N�A 9 59 PHONE: E�0.265.58a1 Fnx 630.2659736 _ A N N f N Q " E".1L S -NcC'm ET i N O i N G £ RIM Tsu-Y E:5?C.5?2.a0z3 SVr.c"S0't0 sy"9 ' G+aipnion&OzaNn.h... March 1 2001 Via UPS,vr,i Day Aires Mike C melt Water Planner Truckee, 1>onner Public Utility District 11750 Poriner Pass Road P. O_ B-� 309 Truckee. <'A 96160-0309 Re: i\,erview Townhomes F I Job No. 2944 Dear of Ike. Per yom request, enclosed are two (2) additional copies of the most recent Site Plan for the above-*Aferenced project, to speaking with Bob Bena or the Truckee Fire Protection District, he v mentiol—I that the required fire flow for this project is 2500 GPM for a 2-hour duration. He indicated that a letter with that information was sent to your office in January, however, if you need al-flier copy, he would be happy to send you one. As ah+ 1�s, please contact our office if you have any questions or need additional information. I can pro ide any information needed by you in order to process the Development Agreement in a timely manner. Please let me know what we can do to expedite this process. We are currently in the pro+ css of designing the Grading &Improvement Plans. Very truly yours, SVI,vrS-TER ENGINEERING, INC. Robert 1 Wood Assist:mf Planner RE W Enclo—re ra,smra<tnnn e 10-\ISFAt.r.�"N a Mh@I\950.(�t)NN[LLLTRO,OOC Nov-06-01 1 ;1 : 28P Sylv�Stcr Engine ring Inc 530 265 8736 P_ 05 March `7, 2001 Mike 4 '<mneli District Water Planner Truck-e Donner Public Utility District P. O. 1'—' 309 11570 1lonner Pass Road Truck'. CA 96160 Re: Riverview Townhomes Planned Development `�CO Job 4 2944 Dear f like: Purse n,u to a phone conversation with Robert Vaughan, the attorney for Riverview Towithomes Plant } Development. Ed Taylor had indicated that it would he possible for our client to pay additb,nal expenses for overtime to expedite processing the Development Agreement Applie .itinn which was submitted to your office on February 26, 2001. It is wi, understanding that the current agency fees for water connection is due to increase signifi, :ntly on May 7, 2001, We hereby authorize additional expenses for overtime in order to proce�r the Development Agreement under the cunent Water Connection and Facilities Fees Sched-4-, As ah,-+rs, please feel free to contact our office with any questions. Very+r u 1 y yours, SCO t'tanuning & En veering,INC. 47; Robes F Wood Assistant Planner RE W cc: jyt irk Steiner I'nSCRw SIN ApMmv»4, ONNE L LLTRO I.DOC Nov-06-0I 1.2 : 28F Sylvester Engineering Inc 530 265 8736 P .04 �AU L(RON O9NE G"'d 24) GwASs YN1Et' f:o-uFnwnin il4ah� PvorcE 5302�2.55di t o N N i N �+ [um� ,COP.:NC�",c CN.NET ~eNaiN M e M I .i r. TwC(;rcEE- °S9U.5H2 hU4". cMvq w d Ozanne March 17. 2001 Ed Ta 1t>r S uperi,rt endent Truck-, Donner Public Utility District P. O. 11"Y 109 11570 lJonner Pass Road Trucke-. CA 96160 Re: Riverview Townhomes Planned Development SCO Job 0 2944 Dear l ,f Pursu-it to a phone conversation with Robert Vaughan, the attorney for Riverview Townhomes Ptarme^ i Oevelopment, you had indicated that it would be possible for our client to pay additional expen=<-s for overtime to expedite processing the Development Agreement Application which was sul+mitted to your office on February 26. 2001, It is onr understanding that the current agency fees for water connection is due to increase signifi, antly on May 7, 2001. We hereby authorize additional expenses for overtime in order to proces the Development Agreement under the current Water Connection and Facilities Fees Sched-le- As ah,iys,please feel free to contact our office with any questions. Very tt l.f y yours, �SCO 11nnnning & Engineering, INC. Robert P Wood Assist;+ot Planner RE WI cc: Marir Steiner )v-E VOB � +n{,oµtmTAYt!)RL1R01�(X' L- Nov-06-01 4.2 - 28P Sylvester Engineering Inc 530 265 8736 P _01 40LION OPnF San£240 GPn55 VnLLE CAL.ORNw 95045 FM 530.222,UJB0 E N G I N E E R TRlK1�E' 590.5[324043 Qrccessor It SYN -,^, C,Ighfo9 d Oze"Ch -., April I '. 2001 67a Fa, imije to 587-1189 r Mike r -trivil Water Planner 'Inrck,'­ Donncr Public Utility District 11-154 Cromer Pass Road Truck, t_A 96 1 6 0-03 09 Re- 11iverview'l ownhomes Planned Development M'Q Job No. 2944.3 Dear ^rl1,e: It is oil, o derstanding that in conjunction with applying for a water service development agrecmcnt for th" Amve-referenced project, we arc to also file water system improvement plans. Acconllnnly, we are proceeding on a fast-track, overtime basis to complete such plans and expect to stfomil them to the District by/on April 23, 2001, If it would be of assistance and expedite the proces we would be happy to deliver the plans to your office and spend a few minutes reviewing them �t, you to answer any obvious questions. We at .ery aware of the pressures you and the District arc tinder to finalize similar development agree^= rats prior to the rate change and appreciate your maintaining our place "in the (lucuc." We will do everything possible to assist you in processing our client's application and will contact you wllh the hope of meeting prior to/on April 23. Your � )ntinued cooperation is greadv appreciated. As always. please feel free to contact our office with am questions or if you desire additional information. Veryr��rly ours, SCW�,r A i��NG & ENGINEERING, INC. dwi,d 8. ylvester, P.E. Princir"1 BBS(i, ` cc: >-lark A. Steiner fs'lafi,cvw1coril3 to 916-9(il-100) /1 ,,,,1v11 F'^n ADMA',9de1C011111LTR02 D ' �1 Nov-06-OI i. % : 29P Sylvester Engineering Inc 530 265 8736 P _06 14G LR'ON CPNE 5Urt 240 GaAs Yn>L'•r 45 CAL5302 2_g" PHONE 330_Z]2.°re�' 4 A N N I N S ^ E N C. W E E R " • TRrrC rae^.: :130.592.e03� Successor to syl'..", Cnugnron S ozanrcr '^^ April ;3. 2001 Nextlhw Or Mike 1 ^nnell Water Manner Truck.-- Donner Public Utility District 1 1750 1 runner Pass Road Truck- CA 96160-0009 Re: Riverview Townhomes Planned Development "Co Job No. 2944.3 Dear ^-107P' Enclo­1 is one set of Improvement Plans for Riverview Townhomes that you requested. The overall utilities sheet(SHT 4 of 11) shows all water and sewer utilities. As al- q vs. please feel free to contact our office with any questions or if you desire additional infom,iNon. Very t'­Iv yours, SCp I'L INNING & ENGINEERING,INC. Robert fi_Wood Plannm _, & Engineering Technician RE W 1', CC: r iark A_ Steiner(vta,lnesimfle only in 9(6-962-1662) l\$ERVEA""'R A DMINaamtU Tif-�LI.TR03 rNN: Nov-06-01 12 : 28P Sylvester Engineering Inc 530 265 8736 P _ 02 � r�D,�oN„RrvE SUR 26 G Rn55 YNt[i CpyFnRNIA 95945 PHONE 5`0.272.:I Fn.. 530.272. l A N N I N +ti EMwi� wno�:Aprrtirvr;.nc " E TrsN:wf 0.:536 58�.hC,Y+ SUcc»s Wr ro HIYP"" Craightw,d Ozaniol+ +^c May R. '001 Mike r -nnell Water Manner Truck,c Donner Public Utility District H570 i>,,nnQr Pass Road P. O. 11—( 309 Truck- CA 96160 Re: Piverview Townhomes Planned Development ',CO Job No. 2944.3 Dear P tike: We «^,,,ld like to express our appreciation for all of your extra work in processing the water develorment agreement and improvement plans for the Riverview'l'ownhomes project. Our cPent is also very appreciative, as Ire is working diligently to keep costs reflective of the gford';!,Ie nature of this project. Obtaining approval of the water development agreement at this point I•+wributed significantly to that effort. We a1 r .,ery aware of the tremendous work load you are under and all of the projects that must have been in the same situation_ We will be responding with the additional information you requested as soon 9- possible. Again. thank you for all of your efforts and professionalism. We look forward to working with you as this project progresses. Very t dy yours. SCO pt.A & ENGINEERPVG, INC. jEdwwl�! 11 + 5 lveste P.E. �Cliarles A. (Tony)Ozanich, P.E. Y Princir , Principal Martin 11. Wood Robert (Rob) I-. Wood Civil I'-igner Planning & Engineering Technician ItBS,j '"3ERYER`^'^^ 1DNP54NKUNNELLL'[R03 DOC Nov-02-2001 12:I7t' Prcm-"C'KEE DDNNEB PUD +5305871139 T-099 P.001/001 F-378 Truckee Donner Public Utility District geazd ofosephrR.Agues J.Ronald Hemig James A.Maass Business OHice (530) 587.3896 FAX (530) 587-5056 Patricia S.Sutton Nelson Van Gundy General Manager N' vember 2. 2001 Peter L.Hotmelster Nl:,lk A. Steiner 5nnq Sunrise Boulevard Fair Oaks, California 95628 D -r Mr. Steiner; wa -spoke on the telephone yesterday about your objection to signing our water cl—velopment agreement because of the requirement that you would be expected to )gay updated facilities and connection fees if your project was not at the point or permanent connection by May 5, 2002. This requirement stems from our p,•li':y that fees paid are good for one year from the date paid. You stated that v could not achieve permanent connection, as required by our policy, by May ,(to I. We set up a meeting to discuss your concerns for 9:00 AM on T'a irsday, November 8, 200 1. You said that you would like to proceed with c- nstruction of the ten-inch water line at this time pending resolution of the e-,­elopment agreement issue on November S. I agreed to allow construction of th= ten-inch line at this time without an executed development agreement in good fMli to help you try to meet the May 5, 2002 deadline. V,- had a second telephone discussion today in which you made clear to me that if ),e development agreement issue is not resolved to your satisfaction at the H1 /ember 8 meeting you would commence legal action. In light of that d.sr,ussion I feel that I should advise you that I will not waive the one year liwiration on the water facilities and connection fees. You can make formal ni 1plication to the Board of Directors to waive that requirement by addressing that rrfplest to the President of the Board, Truckee Donner PUD. P.O. Box 309, 7:t Ickee, California 96160. if we receive that request by Wednesday evening, rl ,iember 7, 2001 the Board may be able to act on it that evening. II ou proceed with construction of the ten-inch water line at this time, without it-wing a fully executed development agreement with this District, you do so at v­Ir own risk. District staff will not inspect construction of the line prior to P<Pcution of the development agreement, and you will be required to re-excavate 0 - line for purpose of inspection when the development agreement issue is it ,lved. ""nr�truly yours, f',ler L. Holzmeister Post OHS•=A Sox 309 " 11570 Donner Pass Road Truckee, cam ornia 96160 M . A. Steiner Development, Inc® Commercial-indusfriai November 2, 2001 President of the Board c/o Peter Holzmeister Truckee Donner Public Utility District P. O. Box 309 Truckee, CA 96160 Re: Riverview Townhomes —Truckee Dear President of the Board and Peter Holzmeister: Thank you for your letter dated November 2, 2001. Please accept this letter as my request to have our project placed on the November 7, 2001 Board agenda. I agree with you that a fair explanation to the Board of the issues involved would be the best way to take care of this situation. There will be additional information via an additional letter on Monday. Sincerely yours, Mark A. Steiner President M. A. Steiner Development, Inc. Managing Member of Riverview Truckee, LLC 5006 Sunrise Blvd., Suite 102 • Fair Oaks, CA 95628 ^ (916) 962-3877 e Fax (916) 962-1662 M . A. Steiner Development, Inc ® Commercial-Industrial November 5, 2001 Mr. Peter Holzmeister Truckee Donner Public Utility District P. O. Box 309 Truckee, CA 96160 Re: Riverview Townhomes —Truckee Dear Peter: I request that you reconsider your decision to cancel our oral agreement as outlined in your November 2, 2001 letter. It is very important that I complete the fire service in order to continue construction of the Riverview Townhome development. This is a requirement of the Fire Marshall, Bob Bena. After our agreement, I mobilized in order to install the water line before expiration of my grading extension, which is November 15`h . I also have a weather window consideration, since my extension for grading could be rescinded upon precipitation conditions. It is possible for me to hire a private inspector that is approved by the District for inspections? Sincerely yours, Mark A. Steiner President M. A. Steiner Development, Inc. Managing Member of Riverview Truckee, LLC 5006 Sunrise Blvd., Suite 102 • Fair Oaks, CA 95628 > (916) 962-3877 • Fax (916) 962-1662 A Steiner Development , Inc . Commercial-Industrial November 5, 2001 President of the Board c/o Peter Holzmeister Truckee Donner Public Utility District P. O. Box 309 Truckee, CA 96160 Re: Riverview Townhomes — Truckee Dear President of the Board and Peter Holzmeister: On April 11 , 2001, 1 received full entitlements from the Town of Truckee to construct Riverview Townhomes. This sixty-unit housing development incorporates a well-planned architectural theme with numerous design amenities. Both the Town of Truckee Planning staff and our development team have worked together to create housing that is an attribute to the community. It was important that we pay the existing water fees by May 4, 2001, so that we could lock in under the existing rates. In order to accomplish this goal, we moved forward with our site improvement plans and architectural working drawings before we even received approval on April 11th. This was very ambitious, since it was possible that we could have not received approvals and all of the extra effort could have been in vain. We were extremely fortunate that we did receive approvals and in turn submitted for a grading permit. At the same time, we moved forward to obtain a development agreement with Truckee-Donner Public Utility District in order to not only lock in the old fees as previously mentioned, but start construction as soon as possible. In order to achieve our goals, our entire team_including the civil engineers and architects have worked overtime and Saturdays and Sundays. We felt that the deadline of May 4th was not an insurmountable obstacle and working together with numerous individuals at the District, we were successful; we signed the development agreement on May 4th and paid fees for the entire project in the 5006 Sunrise Blvd., Suite 102 • Fair Oaks, CA 95628 - (916) 962-3877 = Fax (916) 962-1662 Truckee-Donner Public Utility District Page 2 November 5, 2001 amount of$85,034. 1 appreciate our team's and the District staffs efforts to accomplish this Herculean task. On page 10 of the development agreement, the District acknowledged the effort that we put forward, but also "condition two" stated that the entire project needed to be completed by May 5, 2002, in order to be grandfathered in under the old fee schedule. I felt compelled to protest "condition two", since it was physically impossible to complete the project in twelve months. It also states in the development agreement that the District does have "discretion" to increase any and all fees and costs to equal the district's current charges. On October 25, 2001, after a meeting with other District staff members, Mike Connell suggested to me the possibility of just completing the water system, installing the meters and servicing the building pads even though all of the units are not completed. I felt this was an excellent remedy to the situation, but it is still impossible since from November 15 to May 1, 2002, 1 am not allowed to install any water lines or service. My request is that the District allow me a six-month extension past May 5, 2002, to install the water lines, meters and services to the building pads for the entire project. I understand that I would have to pay the monthly services fees, even though all of the buildings are not completed. Thank you for your consideration of my request. Please feel free to call if I can answer any questions. Sincerely yours, Mark A. Steiner President M. A. Steiner Development, Inc. Managing Member of Riverview Truckee, LLC