NOTES ON ITEMS ON THE CONSENT CALENDAR

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ITEM 8D: RESOLUTION ADOPTING REVISED EMPLOYEE HANDBOOK INCLUDING THE PERSONNEL RULES AND REGULATIONS AND EMPLOYEE CLASSIFICATION AND COMPENSATION PLAN

 

Going forward, out-of-classification pay will be applied from the first day an employee assumes out-of-class duties, rather than the third day.

 

Staff report does not provide an explanation as to why this change is needed, examples of how it is used, how much was paid last year under this provision, nor what the fiscal impact of the change will be. Example: unclear if this applicable when a department head goes on vacation, and a direct report is appointed to be in charge while the manager is gone.

 

ITEM 8E: RESOLUTION ACCEPTING THE 2024 PAVEMENT REHABILITATION AND DRAINAGE IMPROVEMENT PROJECT

 

The pavement rehabilitation project approved by Council on May 16, 2024, budgeted at $1,227,238.50 + $120K contingency is being presented for Council to accept the 2024 Project as complete and authorize final payment to O’Grady.  The total project expenditure including contingency and inspection was less than the budget + contingency and totaled $1,285,952.50. This project covered maintenance on 4.5 miles of roadway.

 

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ITEMS 8F, 8G, and 8H: RESOLUTION GRANTING REQUEST FOR EXTENSION OF THE EXPIRATION DATE FOR BUILDING PERMIT

 

Items 8F, 8G and 8H1-8 all deal with construction time limit extensions for ongoing building projects.  While the facts and circumstances may differ for the ten properties, what is consistent is the Town’s failure to follow its Construction Limit Ordinance 555, eff. February 15, 2015 as stipulated in the Municipal Code sections 8.10.04 -  8.10.08.  This ordinance was due to several projects in Town having been under construction for many years and neighborhoods being adversely impacted.   The ordinance was an attempt to ensure timely completion of projects and minimize the negative impacts of prolonged construction on the community. 

 

The ordinance requires that:

 

1. The time limit for construction is from 18 months to 36 months depending on the value of the project.

2. Two six-month extensions could be granted by the Building Official if submitted at least 14 days prior to expiration of the time limit period along with a written explanation and fee.

3. Denied extensions could be appealed to the Planning Commission and Council.

4. A refundable construction completion deposit shall be required prior to the granting of the time extension in an amount equal to the lesser of 10% of the estimated cost to complete the project, as determined by the Building Official, or $50,000.

5. Failure to complete construction by the applicable time limits, including any extensions, the property owner shall be subject to penalties payable to the Town which shall accrue and be payable daily as follows.

a.        0 to 30 days, $0.00

b.       31 to 60th day, $400.00 per day

c.        61 to 120th day, $600.00 per day

d.       121st day and every day thereafter, $1,000.00 per day up to a maximum penalty of $250,000.00

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There is no indication in the staff reports or available online records that these required steps have been performed.  In some cases, the staff reports state that none of these requirements have been fulfilled.  One permit was issued eleven years ago, and some were issued five, six and seven years ago.  While the pandemic may have impacted projects by a year or two, the staff recommendations does not justify projects exceeding five years in duration nor the retroactive waiving of ordinance violations.

 

The staff report states that there is “no fiscal impact” associated with these time extensions, but the statement ignores the fact that in accordance with the ordinance the Town is entitled to hundreds of thousands of dollars in penalties for construction exceeding time limits. $50,000 penalties are recommended in two cases and no penalties in eight others.  There is no explanation regarding why they are charged in two cases and not in others.

 

It should be noted that the Trak-it system records are in poor condition, conflict with some of the statements in the staff reports, and that these ten projects are certainly not the only permits that have exceeded their construction time limits.​

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Most of the ten properties listed (which include about 15 permits) are many years past their expiration date. Assuming a penalty of $250,000 per property, the town would be owed $2.5 million. Note that the town is currently running at or close to a deficit in terms of operating budget. Allowing each owner a 2-year  grace period would result in revenue of $1.324M to the town. Allowing an addition year (3-year grace period ) would result in $0.763M in additional revenue to the town. One option is to extend the permit duration by 6 months to allow the project to complete.

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While some gratis extensions are warranted given the inspection delays (PG&E and others) and supply chain disruptions due to the pandemic, there is a broader issue here as in many cases the delays pre-date the pandemic.

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9. ONGOING BUSINESS

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ITEM 9A: RESOLUTION APPROVING THE CORPORATION YARD LOCKER ROOM PHASE 1 CONCEPTUAL DESIGN AND DIRECTING STAFF TO MOVE FORWARD WITH FINAL DESIGN DOCUMENTS

 

An existing 122-square foot storage room on the first floor is proposed to be converted into a unisex restroom with a shower. The additional scope proposed for Phase 1 of the locker room project is to upgrade the HVAC system to a heat pump system to also provide air conditioning. Estimated cost of Ground floor Unisex Restroom/Locker Room and HVAC upgrade is $284,550.

 

A second phase would include a second-floor locker room and a new fire suppression system.  Estimated cost $780,000.  Approval for the second phase is not being sought at this time. Roughly half the cost of the second phase is due to the fire sprinkler system upgrade.

 

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ITEM 9B: RECEIVE AN INFORMATIONAL UPDATE ON THE 2024 PATHWAY FEE NEXUS STUDY FOR CONSIDERATION AND PROVIDE FEEDBACK TO STAFF.

 

Background:
Pathway fees are to be used exclusively for construction of new pathways. Individual site development projects will pay a pathway fee and pathways will be constructed as capital improvements projects by the Town.  Previously, a nexus study was performed in accordance with state law and a fee of $10,943 was determined for new single-family homes and $3,826 for accessory dwelling units over 900 sq.ft.  The fee has not changed since 2019.

 

A new Nexus study was awarded to a consultant in October 30, 2023 to develop a new fee.  Based on the current average cost per mile of pathway of approximately $1 million per mile, the estimated total 86-mile pathway system is estimated to cost $91 million.  An estimated 36 miles of Master Path plan segments are yet to be installed.  Based on the 3,151 parcels in town, the cost per household is $28,908.  State law now requires impact fees to be based on square footage, which over the last two years new residences averaged 5,269 sq. ft., which results in pathway impact fee of $5.49 per square footage of development.  This new approach would result in a roughly three times increase in fees from the current $10,943 per parcel to $32,490 for a 6,000 sq. ft. home.  ADUs and 900 foot or greater additions would increase from $3,826 to $4,941.  The fee would be reviewed every eight years and increased by the CPI index each year in the interim.

 

Staff is seeking any feedback or guidance on the 2024 Pathway Fee Nexus Study from Council to move forward with the Town Ordinance amendments required for the Pathway Development Impact Fee update.