Item 11.2 – CC/LRA 11-08-22
RIVERBANK CITY COUNCIL / LOCAL REDEVELOPMENT AUTHORITY
AGENDA ITEM NO. 11.2
SECTION 11: NEW BUSINESS
Meeting Date: November 8, 2022
Subject: Thunderbolt Wood Treating Waiver Request for System Development Fees
From: Marisela H. Garcia, City Manager
Submitted by: Donna M. Kenney, Planning and Building Manager
RECOMMENDATION
It is recommended that Council review the materials and consider the request of the Lovalvo Family Trust, d.b.a. Thunderbolt Wood Treating, to waive the payment of water and storm water system development fees on a new building permit.
SUMMARY:
Thunderbolt Wood Treating intends to install a metal cover of 24,200 sf over an existing chemical process area. The permit fees (System Development Fees plus building permit fees) total $417,184.81 (Attachment 3). Thunderbolt’s request letter discusses the reasons Water and Storm Water fees should be waived (Attachment 4).
BACKGROUND:
Chapter 150.30 of the Riverbank Municipal Code cites the Systems Development Fees Ordinance. Section 150.31 PURPOSE explains that the intent of this chapter is to ensure that new development bears a proportionate share of the cost of city parks, water, sewer, storm water, police, city administration, and transportation capital facilities. It is further the intent of this chapter that new development pays its fair share for the development of these systems through the payment of fees. Further, it is the intent of this chapter that the System Development Fees imposed on new development are no greater than necessary to defray the impacts directly related to the new development.
System Development Fees:
Item 11.2 – CC/LRA 11-08-22
The chart below provides system development fees that apply to BP21-0525 (Attachment 3).
System Development Fee Type Amount
Streets/Public Works $155,412.40
Water $55,635.80
Waste Water $37,703.60
Storm Drain $112,421.10
Parks and Recreation $0
Police/General Government $7,356.80
5% Administrative Fee $19,396.30
Total System Development Fees $387,926.00
Plus Building Permit fees $8,958.81
Plus Stanislaus County Fees $20,300.00
This proposed waiver of system development fees, paid at building permit issuance, would include the Water fee and Storm Drain fees for a total of $168,056.90 (in yellow above). This waiver would apply only to Riverbank’s System Development Fees and not any plan check fees, building permit fees, or inspection fees. It does not include any fees imposed by any other agency such as Stanislaus County ($20,300.00) or the fire district. Thunderbolt has the ability to negotiate with these other agencies to waive or defer their fees.
The submitted request letter states Thunderbolt should not have to pay these system development fees due to the following reasons:
1. Storm Water fees – Storm water is captured in this area, stored, treated, and returned to the process. The storm water generated is concentrated with one specific chemical. This results in the reclaimed water only being able to be reused in this specific process.
2. Water fees – This is an “open-air structure that is not a building.” There is no extension of any city services to it. There is only a connection for fire services for the fire sprinkler system through an existing hydrant on site.
COUNCIL OPTIONS:
Given the information provided by the applicant (Attachment 4) and the information contained within this report, Council effectively has three (3) options:
Option 1: Council may determine that the new covered floor area (24,200 square feet) is subject to nexus fees as is standard practice in the City of Riverbank.
Option 2: Council may determine that a modification of the nexus fees to a lesser amount is appropriate, fair, and within the public interest.
Option 3: Council may determine that the applicant’s statements within their request letter are valid and not subject to the Water and Storm Water fees.
Item 11.2 – CC/LRA 11-08-22
STRATEGIC PLAN:
Pursuant to the City’s Strategic Planning Goal to Achieve and Maintain Financial Stability and Sustainability, staff will make every effort to collect past due invoices and remove liens on behalf of the City.
FINANCIAL IMPACT:
Thunderbird currently owes the City $26,250.59 in system development fees from a structure constructed in 2012. A lien was recorded on the property and remains unpaid.
If the water fee and storm water fee are waived, the financial impact is a loss of $168,056.90 in development impact fees and potential interest on the funds. If the fees are reduced, there will be a corresponding amount lost towards future maintenance of city service systems and potential interest on the funds.
ATTACHMENTS:
1. Resolution 2022-XXX to Approve the Request
2. Resolution 2022- XXX to Deny the Request
3. BP21-0525 Permit Invoice
4. Thunderbolt Protest Letter dated September 29, 2022
CC/LRA – 11/08/2022
CC Resolution 2022
CITY OF RIVERBANK
RESOLUTION 2022-
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RIVERBANK
APPROVING THE REQUEST FOR A WAIVER OR REDUCTION OF SYSTEM
DEVELOPMENT FEES FOR THUNDERBOLT WOOD TREATING
THE CITY OF RIVERBANK CITY COUNCIL (HEREAFTER REFERRED TO AS THE “CITY COUNCIL”) DOES HEREBY RESOLVE THAT:
WHEREAS, it is necessary as established in the Riverbank Municipal Code for the proper and effective operation of City Government to establish, amend, or authorize fees for services in order to provide for the financial support of City Government; and WHEREAS, from time to time, the City Council reviews the fees to ensure that they are adequately supporting the operation of City Government; and WHEREAS, Thunderbolt Wood Treating (“Thunderbolt”) has requested the City Council waive the Water and Storm Water System Development Fees assessed on the construction of a new structure; and
WHEREAS, the City Council has reviewed the materials and agrees with Thunderbolt based on their submitted information that their water and storm water system development fees should be waived or reduced.
System Development Fee Type Amount
Streets/Public Works $155,412.40
Water $0
Waste Water $37,703.60
Storm Drain $0
Parks and Recreation $0
Police/General Government $7,356.80
5% Administrative Fee $19,396.30
Total System Development Fees $219,869.10
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Riverbank hereby approves a waiver of $______________ or a reduction of $_____________ of their System Development Fees for the Project.
PASSED AND ADOPTED by the City Council of the City of Riverbank at a regular meeting held on the 8th day of November, 2022; motioned by Councilmember ______, seconded by Councilmember ______, and upon roll call was carried by the following vote of ___:
ATTACHMENT 1
CC/LRA – 11/08/2022
CC Resolution 2022
AYES:
NAYS:
ABSENT:
ABSTAIN:
ATTEST:
________________________
Gabriela Hernandez
City Clerk
APPROVED:
________________________
Cal Campbell
Vice Mayor
CC/ LRA- 11/08/2022
CC Resolution 2022-
CITY OF RIVERBANK
RESOLUTION 2022-
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RIVERBANK,
CALIFORNIA, DENYING THE REQUEST BY THUNDERBOLT WOOD TREATING, INC. TO WAIVE DEFERRED SYSTEM DEVELOPMENT FEES
THE CITY OF RIVERBANK CITY COUNCIL (HEREAFTER REFERRED TO AS THE “CITY COUNCIL”) DOES HEREBY RESOLVE THAT:
WHEREAS, it is necessary as established in the Riverbank Municipal Code for the proper and effective operation of City Government to establish, amend, or authorize fees for services in order to provide for the financial support of City Government; and WHEREAS, in accordance with the Riverbank Municipal Code, a Building Permit was ready to be issued (September 2022) and System Development Fees were calculated for a new building of 24,200 sf to cover a chemical processing area; and System Development Fee Type Amount
Streets/Public Works $155,412.40
Water $55,635.80
Waste Water $37,703.60
Storm Drain $112,421.10
Parks and Recreation $0
Police/General Government $7,356.80
5% Administrative Fee $19,396.30
Total System Development Fees $387,926.00
WHEREAS, Thunderbolt Wood Treating, Inc., (Thunderbolt) has opposed Water and Storm Water System Development Fees assessed on the construction of this new structure; and
WHEREAS, Thunderbolt has requested that the City Council waive the Water and Storm Water System Development Fees assessed on the construction of this structure; and
WHEREAS, since the issuance of a building permit in 2012, Thunderbolt has owed the City $26,250.26 in system development fees on that building and has refused to pay.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Riverbank hereby denies the waiver of System Development Fees for the Project.
PASSED AND ADOPTED by the City Council of the City of Riverbank at a regular meeting held on the 8th day of November, 2022; motioned by Councilmember ______, seconded by Councilmember ______, and upon roll call was carried by the following vote of ___:
ATTACHMENT 2
CC/ LRA- 11/08/2022
CC Resolution 2022-
AYES:
NAYS:
ABSENT:
ABSTAIN:
ATTEST:
________________________
Gabriela Hernandez
City Clerk
APPROVED:
________________________
Cal Campbell
Vice Mayor
Parcel #: 132-039-021
DESCRIPTION
Comments:
ACCT NUMBER
NEED COUNTY FEES, FIRE APPROVAL. ALSO NEED TO PAY OLD SYS. FEES PRIOR TO PERMIT ISSUANCE. 3400 PATTERSON RD
AMOUNT Due
Permit Invoice
City of Riverbank
Permit Number: BP21-0525
Project Description: NEW DETACHED METAL COVER 24,200 SQ. FT. TO COVER TREATED WOOD FROM THE Property Owner: LOVALVO LEONARD & GRACE TRS
P.O. BOX 1389 RIVERBANK CA 95367
Project Address:
Application Number: 2021000635
Issued Date: Applied Date: 9/27/2021
Mailing Address:
Phone: (209) 869-4561
Contractor: LEONARD LOVALO CONSTRUCTION
Mailing Address: P.O. BOX 1389 RIVERBANK CA 95367-
Phone: (209) 505-9888
Applicant Name: LEONARD LOVALO CONSTRUCTION Phone: (209) 505-9888 Additional Plan Check Fee 1 101 000 000 600 090 2,634.98 Building Permit 101 000 000 450 030 5,900.92
Plan Check 101 000 000 600 090 2,400.00
Seismic 101 000 000 200 220 302.41
Building Standards Administration Spec 101 000 000 200 210 44.00 Business Lic Fee 101 000 000 450 000 60.00
Building File Maintenance Fee 212 000 000 600 200 12.50 System Fee Admin Fee 211 000 000 665 010 19,396.30
SB 1186 - Disability Access Fee 101 000 000 200 189 4.00 Streets / Public Works 205 000 000 675 330 155,412.40
Water 206 000 000 675 330 55,635.80
Waste Water 207 000 000 675 330 37,703.60
Storm Drainage 208 000 000 675 330 112,421.10
Police / General Government 210 000 000 675 330 7,356.80 County Fees 112 000 000 200 200 20,300.00
Total Balance Due: 417,184.81
2,400.00
ATTACHMENT 3
ATTACHMENT 4