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7.1.G. - Page 1 <br /> REPORT <br /> To the Honorable Mayor and City Council <br /> From the City Manager <br /> February 10, 2014 <br /> SUBJECT <br /> Resolution Waiving and Reducing Development and Permit Application Fees Payable <br /> by San Mateo County for Construction of New County Jail <br /> RECOMMENDATION <br /> Adopt a Resolution Waiving and Reducing Development and Permit Application Fees <br /> Payable by San Mateo County for Construction of New County Jail. <br /> BACKGROUND <br /> San Mateo County acquired property that was a former industrial development on <br /> Chemical Way in 2010 as the site for a new jail facility. With the urging and assistance <br /> of the City, the County selected this site rather than build a new facility in downtown <br /> Redwood City. The County's willingness to work with the City and find a development <br /> site for the jail outside the downtown was important to the success of the downtown. By <br /> not building the jail downtown, County land remains available for office and other <br /> development that brings professional and technical jobs to the downtown with <br /> employees who are likely to access the restaurants and post-work activities that have <br /> driven the resurgence of the downtown. <br /> ANALYSIS <br /> During the course of design and construction, the County encountered additional costs <br /> associated with hazardous material clean up and greater than anticipated City fees. In <br /> addition, the County has agreed to make certain improvements beyond those <br /> technically necessary for the County project. Specifically, the County agreed to increase <br /> the size of the sewer lines it would construct in Blomquist Street. The increase in pipe <br /> size enables better operation for the jail, but more significantly it will reduce the <br /> maintenance demands on the City for cleaning and other activities in the public right of <br /> way. Finally, with the increased pipe size (the project demand is for a 12" diameter pipe <br /> and the project will install a 20" diameter pipe), the potential to better enable other <br /> development in the Inner Harbor planning area is enhanced. <br /> The County is ready to pull its permits for work in the City right of way to begin the <br /> building project. Currently, the County is anticipating permit fees and related ancillary <br /> fees of roughly one (1) million dollars. Pursuant to the City's fee schedule, the project is <br /> required to pay $132,000 in sewer capital fees, approximately $318,000 in sewer <br /> capacity fees, and approximately $490,000 in water capacity fees. <br />