Utility Committee Agenda and Packet 2017 10 27

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ILZ City of Louisville Historic Preservation Commission July 17, 2017 Dear City Council, The Historic Preservation Commission is obliged and privileged to bring an issue to light in hopes that Council may find a reasonable solution. It has been brought to our attention that the Tap Fees associated with new construction of auxiliary buildings is serving as a disincentive for owners and builders to act in the most historically sensitive way. When a builder, architect or owner are designing new construction, the decision of whether to connect a new structure or separate it entirely can hinge on the rather expensive tap fee that is charged for an auxiliary building. Often, creative designs are implemented to connect garages or in-law suites, and the additional plumbing, to the original structure to avoid this extra cost. When builders do this, the City does not charge a tap fee. However, when it comes to preserving historical structures, it is preferred that builders leave the original structure unchanged and add a separate building. One case in point is the Louisville Center for the Arts building and the adjoining Memory Square pool house. Connecting the two buildings had a detrimental effect on the North wall of the historic building. In the future, we would like to make sure that any owner of a landmarked building is not encouraged to make this decision just to save money on tap fees. After meeting with the Public Works Department for the City of Louisville, we understand that there are real costs to the City regarding water treatment and other overhead costs to serve the entire City. The main argument that was made in our discussion was that once the tap is provided to the new building, there is no way to control future decisions that might increase water usage and strain the resources of the utility. At least, there is no way to retroactively charge a tap fee at the later date. In the case of commercial buildings, you can imagine an office building with one or two bathrooms being converted into a restaurant with a full kitchen or a small brewery with massive usage. However, in the case of residential, we don't see the same risk of having an auxiliary building on a residential lot consuming extraordinary resources. The main argument that we would like the Council to hear is that we don't believe a change or exemption for residential construction would reduce income for the City. Currently, builders design structures to avoid the tap fee and no income is realized. We would like them to build more sensitively and still avoid the fee. This benefits historic preservation without affecting City funds. HPC Recommendations Residential Properties The Historic Preservation Commission recommends that any additional tap fee or increase in tap fee be waived for new residential buildings on a landmarked residential site that are separated from the existing historical structures.