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Hexbox Fitness owner seeks fee relief after discovery of $30,000 in capacity charges; ADU capacity-fee ordinance tabled
Summary
A Hexbox Fitness owner told the Seaside County Sanitation District board that previously undisclosed capacity fees totaling more than $30,000 threaten a newly built café; district staff said a missing sewer permit in 2024 led to the oversight and the board tabled an ADU capacity-fee ordinance to allow city review.
Alec Obend, owner of Hexbox Fitness, told the Seaside County Sanitation District board on May 19 that he had invested more than $80,000 to build a small café in 2024 and has since been told of previously undisclosed capacity fees totaling "over $30,000," including roughly $11,416 he said was attributable to the sanitation district. Obend asked the board to consider a waiver, reduction or alternative resolution so the café can legally operate.
"I would have been able to make a more informed financial decision," Obend said, describing his unexpected exposure to fees after finishing the project.
Patrick Grogan, the district’s associate civil engineer, responded that the 2024 building permit did not include a Monterey One sewer permit and that the omission meant SCSD staff and Monterey One did not assess capacity fees at the time. Grogan said Monterey One indicated a capacity fee on the order of $22,000 for the connection overall, of which about $11,400 would be the sanitation district’s portion. He said district staff have been in communication with Obend and are waiting for water-billing data to determine the actual water-usage impact before assessing a final fee or proposing relief options.
Board members advised Obend to continue working with district staff and to contact Monterey One Water (the interagency wholesaler) as needed; one member noted the city’s mayor, identified in the record as Mayor Carbone, often participates in Monterey One Water matters and that coordinating through the district could be more effective. The board said staff would help facilitate conversations with Monterey One Water and explore payment timing or other arrangements, but acknowledged the fee obligation exists while staff evaluates options.
Separately, staff introduced a first reading of an ordinance to amend Seaside County Sanitation District Code section 4.15.010 to authorize assessment of proportional capacity fees for accessory dwelling units in compliance with California Government Code section 66013. Several board members said the city requested additional time to review the ordinance language; the board agreed to table the item to the next meeting to allow staff and city representatives to propose edits.
The district’s staff and board did not adopt any ordinance language at the meeting; staff said they would return with the revised ordinance at a later meeting. The board’s next regular meeting is June 9, 2026.
