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Res 2020-078 Policy for excess Sewer Units Resolution 2020-078 September 8, 2020 Page 1 of 3 Resolution 2020-078 Adopted by the City of South Lake Tahoe City Council September 8, 2020 Adopting policy for the distribution of City owned excess sewer units and Authorizing the City Manager to approve up to 72 excess sewer unit distributions BACKGROUND A. STPUD utlizes sewer units to represent an estimated measurement of quantity and strength of wastewater discharged to the South Tahoe Public Utility District’s (STPUD) wastewater collection system associated with fixtures or facilities that discharge wastewater. A sewer unit is used for the purpose of determining server service charges. B. An excess sewer unit is any sewer unit assigned to a parcel in excess of the number of sewer units required for improvements on such parcel in accordance with the District’s Schedule of Sewer Units. C. STPUD has adopted Ordinances to allow the transfer of sewer units from one parcel to another for affordable housing projects and public agency projects. D. The City owns excess sewer units that are associated City owned parcels that previously contained development which was demolished or redeveloped. BASED ON THE FACTS SET FORTH IN THE BACKGROUND, BE IT RESOLVED, that the City Council of the City of South Lake Tahoe: 1. Acknowledges and reserves the right to retain all necessary excess sewer units to support City-sponsored municipal projects; and 2. Hereby authorizes the distribution of excess sewer units subject to the provisions of this policy; and 3. The City Council adopts the following policy for the distribution of City owned excess sewer units: a. Distribution of excess sewer units shall be directed toward the development of residential and public service properties in the City of South Lake Tahoe. b. Distribution of excess sewer units shall be consistent with the STPUD Administrative Code, City of South Lake Tahoe General Plan and Municipal Code, and all other applicable community or area plan policies. DocuSign Envelope ID: 77F16295-88A4-49E1-9DCD-E61CEE50BEC3 Resolution 2020-078 September 8, 2020 Page 2 of 3 c. When a developer/applicant requests City owned excess sewer units for a pro ject to be located within the City, the proposed project shall be evaluated to ensure the project is consistent with the following criteria; i. The subject property must be in the City of South Lake Tahoe; and ii. The developer/applicant must have a planning application on file with the Development Services Department or Tahoe Regional Planning Agency, prior to a project developer/applicant requesting excess sewer units; and iii. The proposed project must provide an environmental, social and/or economic benefit for the community. d. The distribution of excess sewer units shall be to the affected parcel(s), not the developer/applicant and any change to an approved project (e.g., elevations, building siting, interior configuration) may result in the revocation of prior reser vation and/or allocated excess sewer units. The developer/applicant will return to the City the allocated excess sewer units. The City shall reimburse the developer/applicant the price of sale, less the City’s administrative processing fee. e. The developer/applicant is responsible for all sewer transfer and permit fees required by STPUD. f. The distribution of excess sewer units shall be at no cost for the following projects: i. Single or multi-family residential projects, where at least 50% of the newly constructed units are deed restricted to accommodate low, very-low, and moderate-income families, as defined by the Department of Housing and Community Development HCD) annual State Income Limits, pursuant to Health & Safety Code Section 50093. ii. Projects by another public agency primarily providing public services to members of the community with low, very-low, and moderate-income families and individuals. g. A developer/applicant shall have one-year from the date of the approved excess sewer unit request to submit and obtain a building permit, issued through the City. If this milestone is unachievable the applicant may apply for an extension or relinquish the City granted excess sewer units. h. One, one-year extension for the retention of excess sewer units may be granted b y the City Manager, based on the project continuing to meet the distribution policy and proceeding in a diligent manner, or relinquish the City granted excess sewer units. i. If any of the associated City Planning, Building and/or TRPA permits expire, the allocated excess sewer units shall be returned to the City. j. Prior to the transfer of sewer units to an affordable housing project, a City approved deed restriction shall be recorded on the property to ensure that the units identified as meeting the income criteria remain restricted to accommodate very-low, low or moderate income families for a period of twenty (20) years. k. Should the project parcel(s) change ownership, the excess sewer units may be transferred to a new owner so long as the project is constructed as approved. Any change to an approved project (e.g., elevations, building siting, interior configuration) may result in the revocation of prior reservation and /or allocated excess sewer units. DocuSign Envelope ID: 77F16295-88A4-49E1-9DCD-E61CEE50BEC3 Resolution 2020-078 September 8, 2020 Page 3 of 3 l. Should an approved residential project later choose to subdivide the land (pursuant to the Subdivision Map Act), or modify the affordability of the units, all previously required deed restrictions will remain in force or the developer shall reimburse the City for the full STPUD rate for said excess sewer units at the time of subdivision. m. The City Council hereby delegates to the City Manager the authority to approve or deny, and to complete the distribution of up to 72 excess sewer units, with a maximum of twenty-five (25) sewer units per project, inside the City of South Lake Tahoe consistent with the criteria outlined in this policy. n. Requests for the distribution of more than twenty-five (25) excess sewer units to a single project requires discretionary consideration by the City Council. Adopted by the City of South Lake Tahoe City Council on September 8, 2020 by the following vote: Yes: Bass, Collin, Laine, Middlebrook and W allace ________________________ Date:_________ Jason Collin, Mayor Attest: ________________________ Susan Blankenship, City Clerk The presence of electronic signature certifies that the foregoing is a true and correct copy as approved by the South Lake Tahoe City Council. DocuSign Envelope ID: 77F16295-88A4-49E1-9DCD-E61CEE50BEC3 9/10/2020