Hexbox Fitness owner asks Seaside Sanitation District to waive or reduce unexpected capacity fees

Alec Obend, owner of Hexbox Fitness, told the Seaside County Sanitation District board on May 19 that he invested “over $80,000” to build a small cafe attached to his gym in 2024 and only learned during a recent use-permit review that additional sewer capacity and sanitation fees totaling “over $30,000” are now required. Obend said about $11,416 of that sum was attributed to the district and asked the board to consider a waiver, a reduction, or another resolution so the cafe can legally operate without saddling him with large unexpected debt.

Patrick Grogan, the district’s associate civil engineer, told the board the city-issued building permit for the cafe did not include a Monterey One sewer permit in 2024, so the Monterey One and SCSD capacity fees were not assessed at that time. Grogan said the full capacity fee would be roughly $22,000, “11,400 and something of which is for SCSD,” and that district staff have been communicating with Obend while seeking actual water-billing data to determine whether the full capacity fee applies to the cafe’s water use.

Board members encouraged Obend to continue working with district staff and to contact Monterey One Water directly. A board speaker noted the district can help facilitate coordination with Monterey One Water and the city manager and suggested options such as delay or restructuring of payment while staff verifies the cafe’s water usage. The board did not take a formal vote or direct a specific waiver at the meeting; staff said they would continue to pursue data and conversations to try to find an administrative resolution.

Why it matters: unexpected fees applied after construction can threaten small-business viability and raise questions about interagency communication during permitting. The district’s follow-up—collecting water-use data and coordinating with Monterey One Water and the city—will determine whether a reduced assessment or payment arrangement is appropriate.

What’s next: District staff will work with Obend to obtain water-billing data and continue conversations with Monterey One Water and city staff; Obend provided contact information to the board for follow-up.