Meeting Date: March 22, 2017

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1 Town of Moraga Ordinances, Resolutions, Requests for Action Agenda Item 11. A Meeting Date: March 22, 2017 TOWN OF MORAGA STAFF REPORT_ To: Honorable Mayor and Councilmembers From: Ellen Clark, Planning Director Subject: Consider Request for a Refund for the Town of Moraga Building Permit Fee Surcharge, Plan Check Fee, and Tree Removal Permit Fee Associated with Landslide-Related Repairs at 943 Augusta Drive Request The Town Council is requested to consider a request for refund of various Town fees charged in conjunction with issuance of a building permit for repairs to a home at 943 Augusta Drive. The repairs, currently underway, are associated with the March 2016 landslides that occurred in this vicinity. Background Building Permit Related Fees in the Town of Moraga The Town of Moraga contracts with Contra Costa County s Building Division to provide building services for properties within Town limits. These services include technical plan check for conformance with the California Building Code and other relevant building codes, providing inspections during construction, and certification that buildings are suitable for occupancy. Fees for these services are remitted to Contra Costa County, to which a 50 percent surcharge is applied that is returned to the Town of Moraga, and which is intended to address overhead costs for coordinating and administering these services with the County. The Town s Planning Department generally reviews and signs off on building permit applications before they are submitted to the Building Division, to ensure that projects are consistent with zoning and other applicable Town regulations, and to determine if further planning review is required. Per the Fee Schedule, a plan check fee of $175 is charged for review of plans prior to their submittal to the County. If the project would involve tree removal, a separate permit, subject to a separate fee, is charged. 1

2 Augusta Permit Fees Paid In March 2016, a significant landslide occurred in the Augusta Drive area of the Town, causing structural damages to several homes in the vicinity that resulted in the homes being declared uninhabitable. In November 2016 the owner of 943 Augusta Drive, one of the affected homes, submitted an application for building permits to undertake structural repairs, including installation of a stitch pier wall. The Town performed a Plan Check of the plans prior to their submittal to the County, incurring the typical $175 Plan Check Fee. Since the project also involved removal of a tree, a tree removal permit fee was also charged. As described above, building permit fees were also paid to Contra Costa County, a portion of which was remitted back to the Town in accordance with the agreement between the Town and County for Building Services. On February 22, 2017, the property owner, Dwight Pedersen, submitted a letter to the Town Council, requesting a reimbursement of the fees paid to the Town for this project (Attachment A), due to the unusual circumstances and significant expense associated with the required repairs. Mr. Pedersen s request also suggests similar consideration be given to the two other affected homes on Augusta Drive. Mr. Pedersen does not indicate whether any or all of the costs of these repairs or associated fees would be covered by his insurance. Discussion The February 22 letter requests refund of the following fees, totaling $1, Plan Check Fee: $ Tree Removal Permit Fee: $ Building Permit Fee Surcharge $1, $1, Although unusual to do so, it is within the authority of the Town Council to authorize waiver or refund of a fee ordinarily charged by the Town. As has been discussed by the Town Council at several recent meetings, there is ongoing litigation between the property owners, East Bay Municipal Utility District and East Bay Regional Park District regarding the causes and liability for the landslide. In September 2016, the State Superior Court denied a requested injunction against EBMUD to immediately complete repairs of the landslide, because the Agency s liability for the landslide had not been satisfactorily determined by the affected homeowners. The matter, therefore, remains with the Courts. Although staff is sympathetic to the property owner s situation, it is not recommended that the requested refund be authorized at this time since it is unknown whether these fees and other costs may ultimately be borne by the property owner, and not another party in the dispute. Staff instead recommends the Town Council direct the request for refund be brought back for its consideration upon conclusion of the ongoing litigation. 2

3 Finally, as noted, Mr. Pedersen s request suggests the Town Council should authorize similar waiver of fees for Town permits that may be associated with the damage to homes at 935 and 939 Augusta Drive. For similar reasons as those stated above, staff also suggests any decision on refund of fees be made at a later date. Fiscal Impact If the permit fees for work at 943 Augusta Drive were refunded, the Town would lose $1, of fees that would otherwise be reflected as revenue in the Town s operating budget. This amount would increase by an unknown amount if similar waivers or refunds were granted for the other affected property owners and involved agencies. Alternatives 1. Provide direction to the property owner of 943 Augusta Drive to resubmit his request for a refund of Town Building Permit fees upon resolution of the ongoing litigation regarding the Augusta Drive landslide. 2. Direct staff to return with a Resolution, at the next meeting of the Town Council, Authorizing a Refund in the amount of $1, for the Town of Moraga Building Permit Fee Surcharge, Plan Check Fee, and Tree Removal Permit Fee associated with Landslide-Related Repairs at 943 Augusta Drive. Recommendation 1. Provide direction to the property owner of 943 Augusta Drive to resubmit his request for a refund of Town Building Permit fees upon resolution of the ongoing litigation for the August Drive landslide. Report reviewed by: Robert Priebe, Town Manager Attachments: A. February 22, Request for Refund of Fees from Dwight Pedersen B. September 22, 2016 Superior Court Decision, Denying Request for Preliminary Injunction 3

4 ATTACHMENT A February 22, Request for Refund of Fees from Dwight Pedersen

5 Ellen Clark From: Sent: To: Subject: Attachments: Ellen Clark Tuesday, March 14, :34 AM Marty McInturf Letter re: Fee Waiver Request Landslide County Permit Receipt.jpg; Moraga Receipt.jpg Ellen Clark, Planning Director Town of Moraga 329 Rheem Boulevard, Moraga, CA Phone: (925) Fax: (925) From: Marty McInturf Sent: Wednesday, February 22, :20 PM To: Teresa Onoda; Roger Wykle; Jeanette Fritzky; Kymberleigh Korpus; Cc: Michelle Kenyon Karen Murphy Bob Priebe; Ellen Clark Subject: FW: Moraga Landslide FYI correspondence on the Augusta landslide. Marty Marty McInturf, CMC Town Clerk Town of Moraga From: Dwight Pedersen Sent: Wednesday, February 22, :10 PM To: Teresa Onoda; Cc: Marty McInturf Subject: Moraga Landslide Dear Moraga Town Council Members: I am Dwight Pedersen and Sandra Ruliffson and I own a house at 943 Augusta Drive, next door to the Alford house that was red tagged due to the EBMUD landslide. The house that we own is a rental. The landslide goes up to the back corner of our property. We hired Ken Ferrone, Civil/Geotechnical Engineer and Certified Engineering Geologist, to advise us on what we should do. He said the slide is still active and he recommended putting in a stitch pier system to protect our house/investment/occupants. He said the slide could move very quickly and if we weren t proactive we would be assuming risk of damage to or loss of the property. We decided to install the stitch piers. We bid the job to three companies and chose Engineered Soil Repairs, Inc. to do the work. They applied for 1

6 a permit on and the permit was issued on In order to perform the work we needed permission from EBMUD to cross their (undamaged) property with our equipment, bringing it in from the access gate off of Canyon Road. It took us over 3 months to get that permission, but we now have it. The landslide event is not insurable. I will have to make repairs of around $187,550 to protect my property. After it is done you won t see the repair work (it s underground) and it won t add any intrinsic value to the property other than to reverse a portion of the loss of value that we have incurred. We engaged Bruce Hahn, Landmark Valuations, to appraise the property and he provided a diminution in market value appraisal. Mr. Hahn has extensive experience in analyzing and appraising real estate values of distressed properties. He said the property before the slide was worth $1, and after the slide $767,000. The stitch pier project may increase the value from $767,000, but probably not by $187,550 we will spend. Realistically the property is not saleable until EBMUD stabilizes their property so the slide doesn t continue right up to and across Augusta Drive. To date they refuse to do so citing pending litigation. I come to you with this communication to request the forgiveness (reimbursement) of fees for myself and in the future my two neighbors, Alford and Martel, for repairs to our properties of non insurable losses. It is much like the Town of Moraga asking the State and Federal governments for assistance in paying to repair the sinkhole. I have paid total building permit fees of $4, The Town of Moraga got $1, of that. $425 for plan check/tree removal to remove a tree where a stitch pier needs to go and the remaining $1, as a City Surcharge on the building permit fee charged by the county. It doesn t seem right for the Town to prosper off of our misery. I appreciate you reading this and entertaining it as an agenda item at a future meeting. I would be glad to come to such a meeting to provide updates and take any questions you might have. Dwight Pedersen 17 Orchid Drive Larkspur, CA dwightpedersen@comcast.net 2

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9 ATTACHMENT B September 22, 2016 Superior Court Decision, Denying Request for Preliminary Injunction

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