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Council Discussion: City Attorney Mattas reviewed several legal concerns regarding the proposed amendment • to the Town's Policy. He noted that in the circumstances where an applicant was compelled to connect to a sewer line (i.e. a new residence when a sewer line was available within 200 feet of the property) they would be obligated under the proposed policy to pay an amount that was greater than their proportionate share. Under California law, the Town may impose fees on development; however, the fees cannot exceed the reasonable cost of the services provided. If the fees were higher, by definition, they would become a tax. Mattas explained that the imposition of a tax required a different process and potentially voter approval. Additionally, alternative options were available to residents to share costs in the building of a sewer line, including the formation of a sewer assessment district. OPENED PUBLIC COMMENT David Jessen, Berkshire Road, spoke to his own experience in building a sewer extension. While under development, eight neighbors were in agreement to build the line, however at the time of construction, seven of the eight neighbors decided not to participate and Jessen was the sole source of the development. He requested Council consideration of extending the term of reimbursement agreements to in-perpetuity or at a minimum, longer than 15 years. Jessen questioned if a different index could be used for annual increases. The construction cost index was the current indicator. Resident, Burke Road, commented that approximately 6 years ago he had installed a • $50,000 septic system when his new home was constructed. This was prior to installation of the Burke Road sewer line. He had agreed to participate in the sewer line extension"as a good neighbor" gesture even though it was most likely he would not have access it for many years. But when the construction costs escalated two times greater than his original agreement; he was not willing to incur the higher costs. He offered that he would be willing to connect to a sewer line using the Town's reimbursement formula but not at the costs that had been suggested by Mr. Mohazzabi. Steve Askarinam, Elena Road, suggested that the Town implement a policy that would provide incentives to properly owners to join a sewer agreement. He suggested waiving connection fees or construction permit fees. Harry Price, attorney for the applicant, Los Altos Hills resident, addressed Council. He had submitted a letter to Council and referenced his comments in the correspondence. Price suggested that the current policy discouraged sewer extensions and promoted procrastination rather than progress given that the costs were substantially less for homeowners that joined later. He encouraged the Council to consider amending the policy to assist the "pioneer"organizer to recapture his out of pocket costs. Nancy Ginzton, resident, spoke to recent discussions of a new proposed sewer line on Natoma Road and the very high costs for the extension. CLOSED PUBLIC COMMENTS • 8 City Council Regular Meeting Minutes February 12,2009