Tag Archive | "DIF"

DIF moratorium extended

DIF moratorium extended

Pictured: The Town Trolley takes a wide turn around the potholes at the Snowcreek bus stop/

No moratorium, however, on additional spending from Mammoth’s Council

If you were the overseer of a bankrupt municipality, what’s the first thing you would contemplate doing?

While logic might not dictate increased spending and the foregoing of possible revenue, we live in illogical times

At its regular meeting Wednesday in Suite Z, Mammoth’s Town Council voted unanimously to extend its moratorium on DIF (Development Impact Fees) for one more year.

Council also approved the expenditure of an additional $108,000 in public arts money towards the Gateway Community Project and $22,000 for maintenance of a bus turnout.

DIF

According to Community Development Director Mark Wardlaw’s analysis in the agenda bill, 11 projects took advantage of the DIF waiver in fiscal year 2011-2012, and the Town waived a total of $286,992 in fees.

However, approximately $208,000 of that total was attributed to Dan O’Connell’s Rock ‘n Bowl project.

Mr. O’Connell commented Wednesday that if the moratorium on DIF had not gone through last year, his investment team “would not have proceeded.”

Wardlaw said that seven of the eleven applicants told him a similar tale, that the DIF waiver had incentivized them to do the same.

Assistant Town Manager Marianna Marysheva-Martinez did sound a word of caution during the staff report, and appeared to counsel Council to reinstate DIF to maintain fiscal discipline.

Council chose to extend the DIF moratorium for one year, though Mayor Matthew Lehman and Councilman Michael Raimondo pushed for two years.

Councilman Rick Wood noted that he had sat on a previous Council which had initially adopted the DIF methodology (Mr. Wood was conflicted out of the vote at that time because of his financial interest in the Tallus project). He termed the DIF methodology adopted by that Council “idiotic” and claimed he hadn’t supported DIF at that time.

Gateway 

Council then approved an additional $108,000 be spent out of the Public Arts fund for the Community Gateway project.

For those who may be unfamiliar, the project consists of large welcome and good-bye monuments to be built at the entrance to Town along Highway 203 where an existing welcome sign is located.

It is estimated that in the final tally, the monument, the result of a public-private partnership, will cost $671,394.

How will it be paid for?

In-kind donations of services and materials … $232,000

Private monetary donations … $81,000

Public Art Funds … $358,000

Councilman Wood said, “This is a project that is worthy of this community. We are still in business.”

Councilman Jo Bacon cast the lone dissenting vote, as she was not in favor of using public art funds for the project

Bus stop maintenance

Council also approved $22,000 towards repairing the Snowcreek transit bus stop (see photo).

Senior Associate Civil Engineer Peter Bernasconi estimates that the paving was initially done in the early 1990s and has gradually deteriorated over time.

The project will include a new pedestrian waiting area and will meet ADA (Americans with Disabilities Act) compliance standards.

It is also believed that with the repairs, there will no longer be threat of illegal immigration from China (since there are at least two potholes which are about halfway there).  

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No fire, but some smoke

Construction stimulus yields modest results

Mono County’s construction stimulus plan, first put forth by District 1 Supervisor Larry Johnston during his campaign for the seat, was implemented this past May. After six months in effect, Planning Analyst Brent Calloway briefed Mono County’s Board of Supervisors on the results so far at their regular Board meeting Tuesday in Bridgeport.

While the pilot program might not have set the area’s building industry on fire, Calloway could point to at least a modest amount of success.

The program was set up into 2 funds: a $50,000 permit fund for quick stimulus to permit projects that had been previously submitted, and a $50,000 plan check fund, for encouraging new project submissions in order to help accelerate them to construction phase. All permits were eligible for fee waivers for the first $200,000 of permit valuation. Applicants were required to begin construction within 90 days or face permit cancellation and repayment of the stimulus fees.

A total of 114 permit fee waivers and 46 received plan check fee waivers were received and the permit fee waiver hit the $50,000 cap on Sept. 30. The 114 waivers issued ranging from $20 to the maximum allowable of $1,880.

As of Oct. 12, the plan check waiver program had waived approximately $23,000 in fees.

Many permits received multiple plan check waivers, as both the building plan check and the planning plan check fees were eligible to be waived. Of those, 2 permits, both large additions, received the maximum permit fee waiver, realizing a savings of more than $3,300.

Survey says …

Applicants were surveyed as to the program’s effectiveness, and while 37.5% of those who answered said that they were unaware of the program at the time of application, many of those same applicants also responded that the stimulus “greatly impacted” their project timeline. In addition, 55.2% reported the program was a meaningful savings, 19% reported the program was an important part of their project budget and without it, their project would have been delayed and 3.4% reported the program was a true stimulus and without it, their project would not have been possible.

Comparing 2010 data to 2011 data, at the time of implementation in midMay, approximately 10 fewer permits had been issued in 2011 than in 2010. However, permits issued in 2011 surpassed the amount issued in 2010 by mid-August, and rose dramatically in September, though Calloway said a significant amount of that number could be attributed to one project that consisted of 36 individual permits.

The stimulus was targeted to small projects, and a 2010-2011 comparison for small permit types shows an overall increase. Over the Counter permits during the months of May-September increased 27.3% , permits valued under $50,000 increased 21.2% and permits valued over $50,000 but not creating a new residential unit increased 66.7%.

One disturbing trend, Calloway noted, was that submittals for new single-family home construction were almost zero. Since July, only two requests have been turned in. Pending valuation of S$4.4 million in 2010 is down to $2.3 million this year. “We would like to get that number up so we can look forward to a healthy summer next year,” he told the Board.

Calloway said he thinks that the $50,000 permit fund was depleted on schedule, and added that extending or renewing that part isn’t pressing, since little or no construction can be realized during the winter months.

The plan check stimulus might not have skyrocketed, but Calloway recommended extending it, since those waivers can effectively remain in play until the entire $50,000 is exhausted. “It could go relatively fast, if people submit projects over the winter,” Calloway said. At least a few architects, he said, have houses sitting on the fence, and discounted plan check fees could make moving forward more attractive.

Calloway also suggested developing a “prescriptive library of solutions.” Small projects of say $500 or less, such as deck improvements or changing out a water heater, could be streamlined to save thousands of dollars in fees, as opposed to a couple of hundred bucks.

Board Chair Hap Hazard asked Calloway to look into whether any prospective permit seekers might have missed out on getting a share of the pool.

Johnston joined other Board members in supporting the prescriptive solutions, but added he doesn’t want to see the stimulus going to outside contractors and wants it focused solely on local contractors. “If we can get a few homes built to help tide [our local workers] over, that’s where I’m at on this,” he stated.

Johnston acknowledged that the county does give up a certain amount of revenue up front, but makes the stimulus back in property taxes and so on, and indicated he wanted to add more money into the exhausted permitting fee pool to extend that program further in the short term. “I eventually see us phasing this out, but I don’t think [pulling back] now is … the appropriate thing to do. It’s a great program, it shows a lot of interest in our locals and we need to keep it going,” Johnston opined.

The entire program was to expire Nov. 10, but the Board voted 3-1 (Hansen was absent) to extend the plan check portion another six months. Look for the permit stimulus to return at mid year budget review. “I’m in favor of continuing it, but don’t think it’s enough, so I’m voting against it on that basis,” Johnston said before casting the lone dissenting vote. A resolution to solidify the plan check extension will be on the Consent Agenda during the Board’s Nov. 8 meeting.

A Mammoth DIF-ference

Locally in Mammoth Lakes, Contractors Association President Tim Flynn briefed Town Council Wednesday night with news of increased permit activity. Council recently opted to substantially reduced Development Impact Fees, and Flynn related that since Jan. 1 hundreds of permits for projects of various sizes have been pulled, including 21 projects currently in the plan check process. He added that total valuation is up $1.5 million, or about 27%, over last year.

The Town and Contractors Association, he said, are mulling an outreach campaign to target potential contractors and “those on the fence” and spur more applications. Those who do pull now, Flynn said, can apply for extensions on building start deadlines.

Flynn told Council he thinks a significant portion of the building uptick is directly attributable to DIF reductions, and thanked Council for its action on the matter.

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Letters to the editor

Letters to the editor

An osprey sits atop a Tufa formation on Mono Lake. Protecting the lake isn’t for the birds … (Photo: Lunch)

Stop Crowe-ing

Dear Editor:

Thanks for publishing Tom Crowe’s letter about Mono Lake on July 30.

Mark Twain’s “Roughing It” describes Mono Lake in two chapters as unique. He even describes the tufa towers as an ancient feature of the lake.

Tufa Towers State Park was a delight to foreign visitors, especially from Europe, because of the wildlife and the unique beauty of the lake against the snow-capped Sierra. It was a great place to take pictures.

Tufa Towers State Park probably made the State Park closing list because of the remoteness of the area. Moreover, it probably didn’t save very much money, but lost jobs in Mono County instead.

According to Mr. Crowe, the Mono Lake Committee now denies visitors access to Mono Lake with its own police force. Since this is federal land, harrassing visitors probably isn’t legal, but it does have the appearance of a “landgrab” or “lakegrab.”

Mono Lake had to be saved earlier from Los Angeles’ encroachment of its water which was threatening the Califronia Sea Gull. Apparently, Mono Lake has to be saved again from budget cutting from the state of California.

Mark Twain made Mono Lake famous, even though he didn’t know what it was good for! As a journalist, he would recognize that Mono Lake is politically vulnerable again.

Mono Lake deserves federal protection as a National Monument and Wildlife Preserve to preserve it for posterity for wildlife researchers, photographers and the public. It especially needs to be protected from Gov. Brown’s budget cutting. Thanks again to Tom Crowe.

Katharine J. Jones
Alpine, Calif.
Mammoth 2nd homeowner 

Producing global citizens

Dear Editor:

The Mammoth Unified School District would like to thank the Mammoth Lakes Town Council for allowing our high school students to work with the Bluesapalooza Leadership Team to provide safety-organized parking for the event.

Our initial discussions with Joyce and Sean Turner focused on public safety which was the main reason for the request to close Minaret Road to through traffic for the event with a secondary goal to partner with our high school boosters to provide parking for a $10 donation which the Council approved at its Aug. 3 meeting. We appreciated the opportunity as this endeavor raised $4,417 with the help of the MHS Interact Club, and women’s soccer and tennis teams.

The MHS Interact Club is sponsored by the Mammoth Lakes Noon Rotary Club with a motto of “Service Above Self” that inspires members to provide humanitarian service, encourage high ethical standards, and promote good will and peace in the world. Interact has engaged in a number of local service projects this past year including a wood raffle to a needy member of the community, support for senior citizens, career exploration with local business leaders, Rose Parade float building along with volunteering for other school related projects.

Over the years, Rotary Clubs fund projects and sponsor volunteers with community expertise to provide medical supplies, health care, clean water, food production, job training, education, with a focus on improving the quality of life, particularly in developing countries. Many of us have been involved in providing support to our youth with international service projects through Corazon, a heartfelt name for a nonprofit, almost entirely volunteer organization that has offered shelter, education and community to thousands of our neighbors in northern Baja California for more than 30 years: “Building Communities Across Borders.”

Corazon has been building and repairing homes in Mexico through “Build a House In A Day” projects since its beginning in 1978. Last year, students from the MHS Interact Club traveled south of Tecate to participate in a house building project, a 16 x 20 foot home built on a concrete slab. Our students had the opportunity to meet new people, to cut some wood, to frame a house, bang some nails, lay out a roof, and celebrate a great accomplishment that promoted the concept of global citizenship.

The cost to build one home is $7,800. Some of the funds raised this past weekend are going to support that educational experience for our students through Corazon as we plan to travel again in the spring of 2012 with our students and fellow Rotarians to engage in a humanitarian service project.

We want to thank the Town Council, Sean and Joyce Turner and the community for allowing our high school students to engage in this fundraising project to support our school programs and sports.

 

Rich Boccia
Superintendent of Schools
Mammoth Unified School District

 

Bookmobile cuts looming

Dear Editor:

At this time, August 2011, we find ourselves in perilous budgetary situations. The federal government’s recent situation dealing with our serious budget deficit and the debt ceiling nearly sent our country’s triple A credit rating down the drain. Our state budget’s issues have not offered any solace and little hope for economic recovery. Although a budget was signed, it is fraught with “maybes,” “what-if scenarios” and “triggers.”

These “triggers” are troublesome. The state is counting on revenues continuing to increase, as they did in May and June. Should these increases not occur, the “triggers” will be implemented. If the revenue shortfall is more than $1 billion, “Tier 1 Cuts” will be enacted. These will add up to $600 million in cuts to a “wide variety of programs (including child care)” (CDE, July 25, 2011).

“Tier 2 Cuts” will be implemented should the revenue shortfall be greater than $2 billion. These cuts would affect Proposition 98 programs, meaning schools could see further state cuts to their operating budgets.

In Mono County, our school districts, including the County Office of Education, are working diligently to manage resources appropriately and to do whatever is necessary to prepare for mid-year cuts should they occur. Our Library system, which is run by the Mono County Office of Education, unlike any other public Library in the state, is also trying hard to weather these difficult fiscal times.

Public libraries in California are supported mostly by local dollars, which come in many forms: from property taxes, general fund dollars, sales taxes and parcel taxes. The state augments this funding through a few programs, but it is a small percentage of the entire budget.

For Mono County libraries, we received about $20,000 from the state last year. This year, that amount will be about $10,000 unless the “triggers” are implemented, and then that funding amount will be eliminated.

Because of this, we are looking at all the possible ways to cut costs, while keeping a high level of service to all of our communities. Currently, we are studying the Bookmobile expenditures and the services that it provides to see if there is another, more cost effective way of delivering books to those in our communities who are not able to access our libraries.

We will be discussing the matter of the Bookmobile at our next board meeting on August 25 and we welcome the public’s input in this matter. The meeting will take place at the Mono County Office of Education – South Office (Mammoth Lakes) and will start at 2:30 p.m., with public comment being the first agenda item. We look forward to hearing your thoughts on the     Bookmobile.

 

Stacey Adler, Ph.D
Mono Superintendent of Schools
Library Authority Board Clerk

 

Do what’s best for the masses

Dear Editor:

It is time for the community of Mammoth Lakes to stop looking in the rearview mirror and start looking to the future. We keep looking to past business models or strategies to become our answer for tomorrow but we have different needs now than we did then and the needs of our guests have changed.

After hearing about recent Town Council meeting discussions concerning reduction of DIF and economic stimulus, I am asking why are we going through all this again? Do we really need more studies? The town has studied everything to death and done nothing, we have spent hundreds of thousands (if not millions) of dollars doing studies. So to do even one more study is absurd.

I personally and with many others have worked on the general plan update, and spent many many hours reading, studying and digesting all the studies that had been done before. It is very clear what needs to done to sustain the economic viability of the town. I would like to suggest that you and all the people that want to do more studies and build more condos read the 2007 UCSB Economic Forecast White paper.

During the DIF reduction discussions, staff compared Mammoth Lakes to Beaumont or Lancaster, which doesn’t make sense. They are not resort communities or any kind of tourist destination at all. Why would you compare them to us?

I and many others who voted for you were hoping you would lead us down a new path not go down old ones that are no longer viable for economic growth. When having the conversation about economic growth and construction, building hotels is much better for the long-term economy of Mammoth Lakes than building condos. Remember we need hot beds not cold ones, and in terms of construction and the economy there is no difference if you are building condos or hotels.

I ask you to listen to all your constituents please, don’t dismiss those that are trying to give you a little different perspective on what is really going on in town and with staff.

The people and business sectors

such as realtors and developers that want to build more condos have only their own interest and economic survival in mind and not what’s best for the town.

The Town of Mammoth Lakes needs hot beds and amenities such as shopping, spas, restaurants and meeting and conference rooms. Again this is not something I am making up. It is what we learned during the general plan update and the recommendations of the UCSB report. On a national level we have the same issues: the needs of the few are being served rather the needs of the nation.

I hope you will do what is best for the many not the few.

 

Warren B. Harrell
Costa Mesa, Calif.
Mammoth homeowner 

Bench-warming

Dear Editor:

My family and I visit Mammoth Lakes around this time each year, August. We skipped the past two years and returned again this year.

My favorite part of this visit is my walk on the bike path. We are thrilled that this has been made available to us. We feel so much safer walking on the path.

Even more exciting is the installation of the benches between the bridge and Twin Lakes. When I reach Twin Lakes, I look forward to sitting on the bench so I may absorb the beautiful scenery as I drink my water and eat my fruits.

Thank you for the bike path and thank you for the three benches on this path. I hope you install more benches on strategic locations so people may appreciate the beauty that your town exudes.

Thank you, Thank you! We look forward to returning next year!

 

Grace Stinson
Corona, Calif. 

 

 

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Page 2: Playing games

There’s a popular game being played on Facebook right now that relates to the places where people grew up. Basically it leads off with “You know you’re from if …” and you are suppose to post something that only someone from that city would know. Sitting in a special Town Council meeting on Wednesday night, I came up with a new variation of this game after a surreal experience with a member of the Fifty.

“You know you are new to Mammoth Lakes if you unknowingly ask a staff member of the competing newspaper to send a picture she just took to your publication.”

I guess the camera, notebook and agenda packet on my lap wasn’t enough to give me away … perhaps in addition to adding a voice to their repertoire, they should add some eyes and ears, too.

A big issue in the development community lately has been whether or not the Town should do away with Developer Impact Fees as a means of economic stimulus. Council finally approved a resolution on Wednesday that temporarily waives DIF for one to four unit residential projects, commercial projects, and remodel projects for the next year, but man did it make the local contractors that came forward with the request work hard for it.

“We’ve been talking about getting rid of DIF since before my son was born,” said designer Craig Tapley. “He’s two and a half now.”

I asked Community Development Director Mark Wardlaw if the new waiver of fees would be applied to Mammoth View, which won approval from the Planning Commission for its Use Permit Application this week (see Geisel’s cover story).

“DIF is collected when the building permit fee is granted,” Wardlaw explained, “which is still a long way off for Mammoth View. But the waiver would not apply to them. Mammoth View is considered hotel and residential, but it doesn’t fit small residential [one to four units] or commercial.”

He pointed to the Mammoth Rock ‘N Bowl project as an example of what the resolution meant by commercial, while the residential and remodel components relate more to single-family homes and small condo complexes.

Wardlaw, however, pointed out that there is a Town policy that allows developers to negotiate DIF, outside of Wednesday’s resolution, if their project generates TOT.

So Mammoth View could still work their way out of having to pay, or at the very least receive a reduction.

Interesting that Town policy already had a loophole for big development while the little guys have been begging and pleading for help.

Too bad it seems our Facebook game phrase will always read, “You know you live in Mammoth Lakes if the guy from out of town always has more leverage than you do.”

-Kirkner

 

And from Geisel’s desk …

Fire department cost recovery

 

As an addendum to my report in the July 16 issue, titled “The States of California,” specifically the segment on collections agencies billing for public services, Long Valley Fire Chief Fred Stump pointed out that the district does have an agreement with a private company to bill for certain services. The purpose in this case, he said, isn’t to make a profit, but to cover costs of services.

In Mono County, Stump explained that fire departments cover a miniscule amount of the county’s total area. Often departments are sent out beyond district boundaries. The county assumes no responsibility, because it isn’t mandated by the state to provide fire services. (The county does operate a paramedic program, which also isn’t state mandated.)

“Taxpayers pay to have services within their district boundaries, not in other parts of the county,” he said. “We respond to vehicle incidents on Benton Crossing Road, Sherwin Grade, etc., and lots of places the fire department goes aren’t covered by any taxpayers dollars.” The district, he indicated, will respond to the Sierra Nevada Aquatic Research Lab, which is on DWP land, the Mammoth Airport, which is a Town of Mammoth Lakes property, and Tom’s Place, which is on a Forest Service lease. All pay no revenues to the state for fire protection services.

Financial challenges to fire department funding, Stump cited, include increased processing fees for Mono property taxes and other money diversions in Sacramento. Mono County has 11 fire districts, five of which operate on annual budgets of $100,000 or less.

Stump said that structural fires within the district wouldn’t generate a bill; that’s covered as part of the district protection. “If we have a fire on Sherwin Grade, we’re going to get insurance information and turn it over to a collection agency and see if we can get something back to cover costs,” he said, adding that if a fire at SNARL, for example, lasts longer than an hour, the University of California will also get a bill. The billing company used in this case, however, submits the bill to insurance; if payment is made, they take their cut and forward the remaining funds. Stump said the company wouldn’t go to court or file liens, etc. for nonpayment.

And from Vane’s desk …

 

Resort Investment Element goes through the ringer

 

Tuesday’s Recreation Commission meeting was derailed by an innocuous followup presentation on the Resort Investment Element by Community Development Director Mark Wardlaw. The new element didn’t go over particularly well at a Joint Commission meeting July 27, and this week Recreation Vice-Chair Teri Stehlik was the first to voice her continued concern that the Resort Investment Element was “a lot of language, but it just directs you to another planning process, not an outcome.”

Vice-Chair Tony Colasardo added, “It’s a plan about a plan, rather than just making a plan.”

Wardlaw defended the element, arguing that it was intended to help discipline a decision-making process for town projects that, in the past, was “ad-hoc and disjointed.” No one argued with that, but by the end of a 90-minute discussion, few Recreation Commissioners seemed to be convinced that the document would be effective.

Some of the questions they had: “When does the public get involved in the decision-making process, and how are their priorities voiced?” “Is recreation going to get lost in other priorities, like the airport and mobility?” “What about demand for these projects? Where in this document is there a strategy for determining demand, not just cost?”

Wardlaw didn’t precisely answer any of these questions, but pointed out that the new element is only one part of the General Plan, which is itself “intentionally general.” His greatest endorsement, and not a very stirring one: “If we had this [Resort Investment Element] 10, 15, 20 years ago, we’d probably be a little more effective in our decision-making.”

The new element will continue on to the Planning Commission for review, then to the Town Council for recommendations sometime in September.

 

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Fee’d the beast

Town ponders fee waivers for economic stimulus

The Town of Mammoth Lakes may be going the way of Mono County when it comes to the issue of economic stimulus. On Wednesday night, mammoth’s Town Council began to chew on ideas that could create local jobs and encourage building permit activity. The major push from Town staff as well as community members was to reduce or completely cut Town fees related to development in an effort to help get people back to work.

There are four types of fees on the table for consideration: Development Impact Fees (DIF) regulated by the Town, Housing Mitigation Fees, Building Permit Fees, and Planning Permit Fees.

In the past four years DIF and housing mitigation fees have been adjusted in attempts to help alleviate the impacts of the downturned economy. These adjustments include a 50% across the board reduction to DIF in June 2010, which is still currently in effect.

Mayor Pro Tem Matthew Lehman has been leading the charge on the economic stimulus plan, and according to the staff report hopes the plan “would be a short-term measure while a more long-term economic development program is created.” (Lehman was not in attendance at Wednesday night’s meeting but submitted a lengthy letter voicing his support of fee adjustments that was read into the record by Mayor Jo Bacon.

“The stimulus options before you are similar to the County’s,” explained Community Development Director Mark Wardlaw.

In recent months the County has adopted several stimulus programs related to building. First, it waived $100,000 of building and planning fees. The fees will be waived on a first-come, first served basis until $50,000 of plan check fees and $50,000 of permit fees have been waived, or six months has passed, whichever comes first.

Second, the County eliminated its development impact fee program indefinitely, while simultaneously suspending housing mitigation requirements for two years.

“Real or perceived, clients feel that capital improvements are on their shoulders with DIF,” explained Craig Tapley of Design Dimension. “We need to eliminate DIF in single family residences and additions.”

Tim Flynn, President of the Mammoth Lakes Contractor’s Association agreed. “The gains outweigh the losses in these times. Economic stimulus should begin here, locally.”

Even Sean Flavin, owner of Sierra Handyman Services, who focuses on small jobs, has seen the trickle down effect of the slowed economy.

“Builders are now doing the jobs I would usually have done,” Flavin explained. “There are less jobs available and bids are going out lower. If we can ramp up construction then I can continue to enjoy reuben sandwiches at Skip’s restaurant.”

Flavin added that in addition to fees being lowered, there should also be a requirement that development projects have to use local workers. Councilman Skip Harvey took that a bit further and claimed that material as well as labor should be local.

Mickey Brown of local Resort Property Realty shed a different light on the current state of local fees. She explained that at the peak, units at the Westin were selling for $1,000 per square foot. Today, the remaining units will most likely go for $400 per square foot.

“I spoke with a few builders and they said that if the project were built today it would cost $450 per square foot [including fees],” Brown explained. “We wouldn’t be able to cover the costs with what we are currently selling it for.”

However, Council wasn’t ready to commit. Councilmember Rick Wood wasn’t sure if fee reductions were the correct carrot to dangle.

“I get the problem, but I don’t know if fee reductions will be the stimulant for the economy,” Wood said. “Are the fees the tipping point? Builders I have spoken with say yes, but I want a firmer handle [on the idea].”

Harvey wanted more information on the impact of waiving fees.

Councilman John Eastman did not have direction for staff on Wednesday evening. Instead he took the audience on a trip down memory lane. “The Town of Mammoth has no redevelopment opportunities because a Court of Appeals took it away,” Eastman said. “We had to look for another tool, which is why we have DIF.”

*Meanwhile, at the state level, Gov. Brown wants to eliminate Redevelopment agencies because of all the mismanagement and abuse. See Sheet story archived online at www.thesheetnews.com/archives/8037.

The discussion will be brought back to Council’s Aug. 3 meeting.

Search and Rescue granted waivers

The Mono County Sheriff’s Search and Rescue Team was granted a full waiver of DIF for its new permanent base facility being developed on the Mammoth Community Water District’s property. The project’s permit processing fees paid to date shall also be refunded, and any additional fees shall be waived. The project was also deemed exempt from payment of affordable housing and public art fees.

The Mammoth Lakes Fire District as well as the Mammoth Unified School District have also waived fees for this project. MCWD is currently working with its legal staff to determine whether or not it can as well.

The project was deemed eligible for these fee waivers not only because it is a non-profit group, but also because of the services the team provides the Town and the County.

“We can’t even begin to reimburse the team for what they do,” said Craig Tapley of Design Dimension, who is working on the project. (SAR is a group of volunteers dedicated to saving lives. They invest thousands of hours each year to training and calls.)

Council unanimously approved the resolution to waive the fees, but Councilman Rick Wood expressed the desire to develop guidelines for future fee waiver requests.

“We should use guidelines rather than just going by how we feel about the applicant,” Wood said.

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Mono Supervisors dump DIF

Mono County’s Development Impact Fees were a short-lived attempt at revenue enhancement, ultimately yielding only miniscule results, but on Tuesday the Mono County Board of Supervisors collectively decided it was finally time to put the underperforming DIF program out of its misery.

Terminating the program was originally brought up this past May as part of Supervisor Larry Johnston’s “County stimulus” plan. Two-thirds of his ideas ended up being adopted in some form or other, but a 3-2 majority wasn’t sure that it wanted to get rid of fees entirely, opting at the time to revisit the issue when the DIF Schedule Report came up for its 5-year review.

County Financial Analyst Mary Booher presented the updated schedule to Board on Tuesday. Her report, based on the initial 2005 version compiled by consultants Stantec and Charles Long Associates, examined the itemized recommended fees for both residential and commercial developers, covering impacts on services ranging from government buildings, drainage, traffic, recreation and even libraries (except in Mammoth Lakes).

The itemized fees, which end up being billed out in composite form, were adopted as part of Chapter 3 of the Mono County Code in November 2005, and established base Equivalent Living Unit (ELU) fees of about $2,700 in Crowley and $5,000 in June Lake for development south of Conway Summit. (Interest was expressed at the time for expanding the fees countywide.) ELUs are a unit of measure that is calculated based on projected future land development and uses, particularly resort uses.

All the fees were to be held to help fund various capital projects, and when the Board adopted them in 2005, development was booming. But it wasn’t long, however, before the economic climate began to sour and the boom went bust. By the time the current Board sat down for Tuesday’s meeting, only about $300,000 of impact fees and interest had been collected for Sheriffs Department, County buildings, and administration and planning applications.

Johnston remained critical of DIF, echoing his primary problem with the program much as he did in May. “Development needs to be shown to have an impact before we can have justify having a fee schedule,” he reiterated. Indeed, using some simple math, Johnston illustrated that, dividing the DIF schedule’s Countywide Land Use Inventory of roughly 27,000 ELUs by the current amount of development that amounts to roughly 40 ELUs annually, it would take about 700 years to collect fees for proposed projects.

Board Chair Hap Hazard essentially agreed with Johnston, commending staff’s thorough work, but calling the report “fatally flawed.” With some 250 homes planned for the Tri-Valley area in his district, Hazard didn’t dispute the need for some type of impact compensation. He did, however, suggest that perhaps fees should be looked at more tailored to a specific project or area, perhaps levied on more case-by-case basis, as opposed to a blanket, countywide approach. “Chalfant needs a community center, but collecting fees to pay for a [proposed] ‘gymnasium’ is borderline criminal,” Hazard said, adding it’s not something that goes to the need of the area. In any case, he wasn’t convinced that now is the time for any sort of countywide DIF, particularly as represented by the present program.

“When Charlie Long swung through the County 7 years ago, he said DIF was needed to ASSIST in paying for things the County needs,” Supervisor Byng Hunt recalled. “At the time lots of things were in the works and development was booming. Times have changed. We can’t project what conditions will be like 10 years from now, and it’s hard to justify a fee schedule that would attempt to cover that period of time.”

During public comment, Rocky Scholl and his wife, one couple who have been working on a home in Sunnyslopes and stood to owe the County about $3,000 in DIF were chomping at the bit to see where the Board was intending to go with its decision. “If you’d said 5-7 years ago the planet’s economy would go off the edge, people would have said you were crazy, but here we are,” Mrs. Scholl observed.

Mammoth resident Leigh Gaasch, however, was supportive of the fees, pointing to needs in parts of town, such as Sierra Valley Sites, needing storm drain improvements, as well as other services.

The elephant in the room, suggested Supervisor Vikki Bauer, has always been the 2005 Stantec study. Bauer reviewed the study and railed at the document. She went on to list numerous flaws in its findings, pointing out sloppy methodology and assumptions based on generic figures either “pulled out of thin air” or derived from out of county and, in some cases, out state sources, such as Nevada.

County Finance Director Brian Muir noted that, if nothing else, the Board should consider keeping fees related to building a new jail, at present estimated at $15 million, which he thinks will before long become a necessity. Look for the Board to explore grants and other CIP options for funding the jail and other projects.

Supervisors voted 5-0 to scrap the existing DIF program, albeit with mild reservations by Bauer, who indicated she preferred the entire DIF account to be refunded. The County will refund much of the $300,000, except for any fees bound for the Sheriffs Department and County buildings. Any fees pending but not already paid will be nullified and rescinded from collection.

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Subtle “DIF”ferences

Diff’rent strokes for different Supes when it comes to applying fees

By Geisel

Developer impact fees, or DIF as they’re commonly called, are a bit like taxes. Somebody has to pay them, but (particularly in a recessed economy) most folks, from big-time developers to small or one-off single-family homebuilders, find as many ways as they can to avoid them.

One of those homebuilders is June Lake resident Jim Gonzales, who brought an appeal over $5,000 in DIF fees to the Mono County Board of Supervisors earlier this month.

Gonzales, who wants to build one single-family home, bought property, located at 247 Lakeview Drive in June Lake, in the summer of 2007 as a “vacant” lot.

The property’s previous owners determined at the time that demolishing the 1928 cabin on the site, which occurred in 2005, would have made building a new structure easier in terms of “remodeling.” The previous owner had filed plans for new construction later that year, but those plans never made it past the conceptual stage and were later abandoned.

In his appeal, Gonzales argued that his plans to build a house on the property constituted “reconstruction,” based on the fact that a previous structure (the 1928 cabin) had previously stood on the land. That, he said, means he also wouldn’t be on the hook for most, if not all, of the County’s $4,999.96 bill for development impact fees.

All parties agreed that the County’s definition of “reconstruction” is vague at best, and needs more specificity. DIF is usually collected to offset impacts of “new” construction. Gonzales argued that his plans are not “new” development, since the home is in an already existing residential area, and further would be at least the second dwelling to exist on the lot. He also cited what were, in his estimation, potential contradictions in how the DIF fees were applied or waived in the past relative to “reconstructed” property.

Gonzales said he would be agreeable to paying incremental fees that could be applied to the difference in the square footage between old and new dwellings, a position supported by Supervisor Vikki Bauer.

Supervisor Tom Farnetti, however, said he thought Gonzales was asking for something that was unfair to other builders who have been charged full DIF fees for new construction. Farnetti said Gonzales’ plans essentially add up to “new” construction, in that the property is vacant and, with the exception of some water and sewer lines, essentially barren.

Supervisor Hap Hazard sided with Bauer, though he took a different route to get there. He concluded that Gonzales’ plans constitute “new” construction, but said the language is confusing and therefore opens the door to “tolerance” and allows for pro-rated rather than full fees.

Other properties have gone through a similar process, but none of these brought appeals before the Board. Chair Byng Hunt cited that fact, in addition to the road system already in place, in his comments. While he said he wasn’t going against the ordinance per se, he did support the pro-rated compromise.

A motion to shift the fees to a pro-rated scale died for lack of a second, motivating Farnetti to defend his position and urge the Board to be “consistent.” Supervisor Bob Peters also advocated not singling out any particular developer, saying the contractors know there will be fees. Gonzales replied with his take that the County hasn’t been consistent, not pursuing DIF fees on some new construction, yet collecting DIF fees on another project he maintained was deemed “reconstruction.”

The Board voted 3-2 to find the project was “new” construction and that all fees applied. Hunt and Bauer dissented. Hazard flip-flopped his position and voted against what he expressed in his initial comments. Hunt asked for staff to revisit the County’s building codes and look at potentially vague language that can and should be tightened up to prevent these sorts of misunderstandings wherever possible going forward.

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