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HomeMy WebLinkAboutBUDGET & FINANCE AGENDA 07-02-07 Central Contra Costa Sanitary Distrid 5019 Imlloff Place, Martinez, CA 94553-4392 (925) 228-9500 . wwwcentlalsan org BUDGET AND FINANCE COMMITTEE Chair McGill Member Nejedly Monday, July 2,2007 3:00 p.m. Executive Conference Room 5019 Imhoff Place Martinez, California 1. CALL MEETING TO ORDER 2. PUBLIC COMMENTS 3. OLD BUSINESS a. Review outstanding questions regarding Capacity Use Charge Program. 4. CLAIMS MANAGEMENT a. No new claims to report. 5. REPORTS/ANNOUNCEMENTS a. Review Financial Statements. 6. REVIEW EXPENDITURES 7. ADJOURNMENT A ,,~ Recycled Paper Central Contra Costa Sanitary District June 29, 2007 TO: FROM: BOARD BUDGET AND FINANCE COMMITTEE RANDALL MUSGRAVES ~~~ DEBBIE RATCLIFF ;.1{ SUBJECT: June 18, 2007 Finance Committee Meeting The following question was outstanding from the prior Board Budget and Finance Committee meeting. The question and response is provided below: 1. Capacity Use Charge Program - Does the District let all restaurants know about the Capacity Use Charge Program? See attached memo from Ann Farrell, Director of Engineering. Central Contra Costa Sanitary District June 26, 2007 TO: FROM: BOARD FINANCE COMMITTEE ANN E. FARRELL, DIRECTOR OF ENGINEERIN~ CAPACITY USE CHARGE PROGRAM SUBJECT: District Code Chapter 6, Fees and Charges, provides for a Capacity Use Charge Program for certain nonresidential user groups with high wastewater generation potential. In the event that the Facilities Capacity Fee imposes a constraint on a new business formation, staff can offer the business participation in the Capacity Use Charge Program with concurrence of the property owner. After an initial down payment based on average water use, the business and property owner may enter into an agreement with the District which allows payment of the remaining portion of their Capacity Fees via the owner's property tax bill over a 15-year period. These Capacity Use charges are calculated each year based on the water consumption of the business and rates that are adopted by the Board each year. It has been the practice of staff at the permit counter to quote a new business their Facilities Capacity Fee and offer the program only if the business expresses difficulty in paying the fee. Most businesses choose to pay the Capacity Fee up front and do not participate in the program. This limited outreach approach has been adopted because the administrative burden for the program is relatively high, and those costs are not recovered. In addition, if a business goes out of business within the fifteen years, payment of the Capacity Use Fee is suspended. (The credit for the amount of the fee that was paid becomes a credit against the property for a future business.) For these reasons, District staff has felt that the program should be strictly need based and has not recommended a more extensive outreach program. If the Finance Committee would like to consider the matter of increased outreach further, staff would suggest we develop data on the administrative costs of the program and the historical Capacity Fees not paid so that an informed decision can be made.