1990-11-12 Regular Meeting - Laserfiche WebLink

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• • CITY OF LA PORTE INTEROFFICE MEMORANDUM TO: Robert T. Herrera, City Manager FROM: John Joerns, Assistant City Manager DATE: July 13, 1990 SUBJECT: Consideration of interim front foot fees Re: SB336 and development of utility extension policies Ordinance 759 (and amendments) provides policy guidelines for utility extensions and establishes front foot fees for businesses and residences seeking water and sewer service. The last time front foot fees were increased was in August, 1976. Since that time there has been several discussions at the Council level that considered either an update to the front foot fees or adoption of a capital recovery fee. However, no Council action has taken place regarding this matter. As discussed at the Council/Staff Retreat, SB336 has established firm guidelines that must be followed if capital recovery fees are to be adopted. It is recommended that Council designate a workshop meeting to discuss and reaffirm the Council's goal of developing new utility extension policies and establish a policy decision on whether or not Council wishes to pursue capital recovery fees. In order to comply with SB336 the City will soon abandon the policy requiring a fee for fire hydrant installation if one is required in order to receive a building permit. At that time the costs of installing fire hydrants for certain building permit requests will fall back on the City's Utility Fund. However, as explained earlier, the front foot fees collected are not sufficient to cover the construction costs of many water and sewer mains much less the additional burden of fire hydrant installation costs. Therefore, it is suggested that Council consider adoption of new front foot fees that more closely reflect actual construction costs. The following table shows residential and commercial fees that are more representative of the costs necessary to develop the basic infrastructure (no oversizing). They were established by reviewing a report on typical construction prices around the state and applying them to local circumstances, (ie typical lot sizes, etc.). The current front foot fees are also included for your information. It is anticipated that a more complete discussion of these fees will take place at a future Council workshop and/or regular meeting.