ITEM:		ACTION ITEM
18.	CONSIDER REQUEST FOR WATER FROM DISTRICT RESERVE AND DELAY OF PAYMENT OF FEES FOR NON-PROFIT PUBLIC BENEFIT PROJECTS – CASA DE NOCHE BUENA, 1292 OLYMPIA AVENUE, SEASIDE AND SHUMAN HEARTHOUSE, 600 FRANKLIN STREET, MONTEREY
Meeting Date:			September 19, 2022	Budgeted:	N/A
From:			David J. Stoldt,	Program/	N/A
			General Manager	Line Item No.:
Prepared By:			Stephanie Locke	Cost Estimate:	N/A
General Counsel Approval: N/A
Committee Recommendation: N/A
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) is requesting Board approval for 0.393 Acre-Feet (AF) of water from the District Reserve Allocation and delayed collection of the fees associated with two Water Permits (Exhibit 18-A). The water is necessary to complete two shelters for women and families. The Monterey property at 600 Franklin Street is 0.215 AF short of the amount needed to fully renovate and occupy the available space and to provide meals for up to 35 occupants. Construction is scheduled to begin next month with opening planned for next summer. The Seaside shelter at 1292 Olympia is open, but CHS would like to add on-site meal preparation which requires a Water Permit and an additional 0.178 AF. Meals are currently brought in from Monterey. Full descriptions of the services provided at each location can be found in Exhibit A. The Board previously (February 13, 2020) approved a deferral of fees for the initial construction of the Seaside shelter.

District Reserve Allocation

The District Reserve was reinstated by Ordinance No. 182 (5/20/2019) and has a balance of 9 AF. The Reserve is available for use at the Board’s discretion.

Deferral of Payment

District Rule 24-H-2 (Exhibit 18-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 is a 501(c)(3) non-profit organization (Exhibit 18-C) and qualifies 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.

RECOMMENDATION: District staff recommends the Board approve 0.215 AF of District Reserve for 600 Franklin Street, Monterey, and 0.178 AF of District Reserve for 1292 Olympia Avenue in Seaside to facilitate Community Human Service’s construction and operation of two women’s shelters. In addition, the Board should adopt the Findings of Approval provided as Exhibit 18-D and defer payment of fees and charges for these two Sites pursuant to Rule 24-H and approve an interest rate of 4% as the amount of interest that would be charged if there is a transfer to a for-profit organization in the future. The amount of interest will be stated in the deed restriction recorded on each property. Delayed fees, with interest, would become due when the property is no longer operated by a California Non-Profit Public Benefit Corporation.

EXHIBITS

18-A Request for District Reserve Water and Delayed Payment of Fees

18-B Rule 24-H-2

18-C Non-Profit Status

18-D Findings of Approval

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