ITEM:		ACTION ITEM
15.	CONSIDER REQUEST FOR DELAY OF PAYMENT OF CAPACITY FEES PAYMENT FOR NON-PROFIT PUBLIC BENEFIT PROJECT – PENINSULA SHELTER PROJECT, 1292 OLYMPIA AVENUE, SEASIDE
Meeting Date:			February 19, 2020	Budgeted:	N/A
From:			David J. Stoldt,	Program/	N/A
			General Manager	Line Item No.:
Prepared By:			Gabriela Bravo	Cost Estimate:	N/A
			Stephanie Locke
General Counsel Approval: N/A
Committee Recommendation: The Administrative Committee considered this item on February 13, 2020 and recommended approval on a 3 – 0 vote.
CEQA Compliance: This action does not constitute a project as defined by the California Environmental quality Act Guidelines Section 15378.

SUMMARY: Community Human Services (CHS) and Gathering for Women (GFW) are requesting Board approval for delayed collection of the Capacity Fees associated with a Water Permit for the Peninsula Shelter Project at 1292 Olympia Avenue in Seaside (Exhibit 15-A). The project involves converting a 4,500 square-foot building (Group I water use) to a Group III “dormitory” use. The project will house 30 participants in ten bedrooms. The Change of Use results in an increased Water Use Capacity of 0.315 Acre-Feet (AF) of water, and Capacity Fees of $8,693.07 will be due when the Water Permit is issued.

District Rule 24-H-2 (Exhibit 15-B) allows the Board, on a case-by-case basis, to defer payment for projects undertaken by a California Non-Profit Public Benefit Corporation when there is the presence of a substantial financial hardship to the Project proponent such that the development of the project would be jeopardized by the present assessment of the full fees and charges due for the issuance of a Water Permit. When a delay in payment is approved by the Board, a deed restriction is recorded on the property that requires payment of all fees and charges due for the issuance of a Water Permit, together with deferred interest at a rate set by the Board, to be paid in full in the event the project ownership or occupancy is transferred to any entity other than a California Non-Profit Public Benefit Corporation. District Rule 24-H-2 is intended for use in the presence of substantial financial hardship to the project proponent.

CHS and GFW are 501(c)(3) non-profit organizations and qualify for consideration of the delayed permit fees as allowed by District Rule 24-H-2. The applicant states that substantial hardship would occur by requiring payment of the Capacity Fees. Homeless Emergency Assistance Program (HEAP) funding was awarded for the capital development of the property and a few months of shelter operations. The applicants have indicated that the project would present a substantial financial hardship that could negatively affect the ability to complete construction with the timelines specified by HEAP. The County of Monterey is supporting this project by leasing the property to the organizations at no cost for a period of ten years.

RECOMMENDATION: District staff recommends the Board adopt the Findings of Approval to allow delayed payment of Capacity Fees for the Peninsula Shelter Project at 1292 Olympia Avenue in Seaside. In addition, the Board should approve an interest rate of 4% as the amount of interest that would be charged in the event the project transfers to a for-profit organization in the future. The amount of interest will be stated in the deed restriction recorded on the property. Delayed Capacity Fees, with interest, would become due if and when the property is no longer operated by a California Non-Profit Public Benefit Corporation.

EXHIBITS

15-A Request for Delayed of Payment of Capacity Fees

15-B Rule 24-H-2

15-C Findings of Approval

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