REPORT TO COUNCIL
SUBJECT
Title
Adopt a Resolution Amending the FY 2018/19 Fee Schedule to Modify Water and Sewer Connection Fees for Hotel Properties and Find that the Action is Exempt from CEQA
Report
BACKGROUND
The City of Sunnyvale Fee Schedule imposes connection fees for both water and wastewater utilities. Connection fees are assessed to property developers to cover the incremental demands placed on the water and sewer systems by new developments. The fees are reviewed periodically to ensure that they are in line with the cost of buying into the City's utility systems. The most recent assessment was completed by Bartle Wells Associates in 2015.
The rooms in Hotel developments are currently charged the same rate as multi-family residential properties on a per unit basis. In response to a request to review the basis for this fee, staff reached out to Bartle Wells Associates to reevaluate the fees and identify if hotels should be broken out as a separate fee category. The updated analysis showed that an adjustment to the capacity fees for hotels is warranted.
EXISTING POLICY
Council Policy 7.1I.1b.2 states that "New improvements or expanded capacity in any utility should be funded by those benefiting through specific charges, such as connection fees, impact fees, or mitigation fees."
ENVIRONMENTAL REVIEW
The action being considered does not require review under the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15378(b)(4) as it is government funding mechanism that does not involve a commitment to any specific project that may result in a potential significant environmental impact.
DISCUSSION
In late 2015, Bartle Wells Associates completed a Water and Sewer Capacity Fee Study for the City's Finance Department. The report recommended updated water and sewer capacity charges designed to equitably recover the costs of facilities and assets for new developments. The recommended changes were based on an average cost approa...
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