The Buildout Reduction Plan (BRP)
The BRP is perhaps the biggest obstacle in permitting the RWP
The BRP allows more than 650 additional residential connections
The BRP mandates purchase or retirement of 1377 undeveloped parcels
Cost of the BRP to Cambria ratepayers: $34,000,000+ plus fees
One of the least discussed, put possibly biggest obstacle to using the EWS/WRF to add the additional water connections envisioned in CCSD’s current application for a “regular” Coastal Development Permit for the EWS/WRF will be the cost and complexity associated with the implementation of the Buildout Reduction Plan (BRP), a required mitigation measure included in the Board-adopted 2008 Water Master Plan, and, by reference, the 2017 Subsequent Environmental Impact Report that changed the purpose of the EWS/WRF from drought protection for existing residents to a facility to support “buildout.” This plan is estimated to cost in excess of $30 million, with additional unknown annual maintenance costs.
The BRP was developed because Cambria has an adopted Water Master Plan with a maximum number of residential water connections of 4,650. The 650+ “Water Wait List” parcels, along with existing connections, complete the maximum 4,650 connections allowed under the Water Master Plan. There are, however, an additional 1,300+ parcels that would not be eligible to ever receive a water connection. The BRP proposed to use public funds to purchase and “retire” those parcels. The estimated cost to implement the BRP ranges upwards of $30 million dollars, with an additional annual cost to maintain the retired parcels of $550,000. Here’s an explanation of the plan taken directly from the BRP:
Cambria is a scenic community of approximately 6,000 residents …the town’s resources are limited, specifically water and other infrastructure. These limitations led the Cambria
Community Services District (CCSD) to adopt the goal of limiting residential water connections to 4,650. There are currently 1,377 undeveloped parcels within the CCSD’s service area that are in excess of this target.
The RWP would allow the CCSD to issue intent-to-serve letters for new water connections, eventually allowing the community to grow to its target of 4,650 residential connections, resulting in a population of between 7,700 and 10,500.
...the BRP will use public funds to acquire and maintain undeveloped parcels
One reason to develop a BRP is to provide property owners a market for their properties and, upon acquisition, the CCSD will be able to retire properties from future development.
Currently the CCSD serves 3,766 residential connections. As a result, the WMP allows for 884 additional residential connections. (note- as of Dec 2017)
the CCSD has committed to 768 new residential water connections. The largest category of unserved commitments is the CCSD water wait list, comprising 665 properties.
...development of existing commitments could occur at a rate of 38 new homes per year perhaps rising to 45 new homes per year over a period of approximately twenty years. At full buildout, the number of residential water connections would be 4,650.
...the North Coast Area Plan requires that visitor-serving purposes be given priority over residential purposes. As a result, the CCSD has committed at least 20% of its water service to commercial accounts, the majority of which comprise visitor-serving businesses, such as lodging and restaurants.
…undeveloped parcels within the CCSD urban boundary identified on the County Assessor’s database is 2,271… the BRP applies to 1,377 undeveloped residential APNs.
Therefore, if the CCSD adopts and implements the updated BRP, 1,377 undeveloped parcels would need to be retired to achieve the goal of 4,650 residential connections.
It is virtually impossible to precisely estimate the cost of the program for, at least, two reasons. First, projecting real estate values over the course of twenty or more years into the future is uncertain, at best. Second, valuing all undeveloped APNs subject to the program assumes that all such parcels will be retired through purchase.
According to the assessed valuation method the current value of undeveloped APNs is approximately $30M ($30,000,000). Using this market- based method yielded a valuation of approximately $34M ($34,000,000). (NOTE- 2017 real estate values so assume a minimum 20% increase for current values)
The costs of maintenance would initially be $0 and would increase as parcels are acquired under the BRP, eventually reaching $550,000 once the program is fully implemented.
Implementation of any buildout reduction program that contemplates setting prices for the purchase of real property involves complex legal issues. Accordingly, legal counsel should be involved…
…specialized legal counsel to form the CFD and comply with the many complexities involved.
special parcel tax of $100 per developed parcel, both residential and commercial, within the CCSD urban boundary…The income generated by such a special tax would be approximately
$400,000 per year, or $10 million over a 25-year period
The plan, adopted August 21, 2008 by the CCSD Board of Directors, can be found in its entirety here: https://www.cambriacsd.org/files/4d09faef8/sr-7-c-clean-report-2017-12-14.pdf
