HomeMy WebLinkAboutBUDGET & FINANCE AGENDA 05-17-10Central Contra
REGULAR MEETING OF THE
CENTRAL CONTRA COSTA
SANITARY DISTRICT
BUDGET AND FINANCE COMMITTEE
Chair Nejedly
Member Hockett
Monday, May 17, 2010
3:00 p.m.
Executive Conference Room
5019 Imhoff Place
Martinez, California
INFORMATION FOR THE PUBLIC
ADDRESSING THE COMMITTEE ON AN ITEM ON THE AGENDA
District
BO:I RD OF DIRECTORS
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PHONE. (925J 228-95170
FAX: (925) 676-72 / 1
lvww.centralsan. org
Anyone wishing to address the Committee on an item listed on the agenda will be heard when the
Committee Chair calls for comments from the audience. The Chair may specify [he number of minutes
each person will be permitted to speak based on the number of persons wishing to speak and the time
available. After the public has commented, the item is closed to further public comment and brought to the
Committee for discussion. There is no further comment permitted from the audience unless invited by the
Committee.
ADDRESSING THE COMMITTEE ON AN ITEM NOT ON THE AGENDA
In accordance with state law, the Committee is prohibited from discussing items not calendared on the
agenda. You may address the Committee on any items not listed on the agenda, and which are within their
jurisdiction, under PUBLIC COMMENTS. Matters brought up which are not on the agenda may be
referred to staff for action or calendared on a future agenda.
AGENDA REPORTS
Supporting materials on Committee agenda items are available for public review at the Reception, 5019
Imhoff Place, Martinez. Reports or information relating to agenda items distributed within 72 hours of the
meeting to a majority of the Committee are also available for public inspection at [he Reception. During
[he meeting, information and supporting materials are available in [he Conference Room.
AMERICANS WITH DISABILITIES ACT
In accordance with the Americans With Disabilities Act and California Law, it is the policy of the Central
Contra Costa Sanitary District to offer its public meetings in a manner that is readily accessible to
everyone, including those with disabilities. If you are disabled and require special accommodations to
participate, please contact the Secretary of the District at least 48 hours in advance of the meeting at (925)
229-7303.
® Recytled Paper
Budget and Finance Committee
May 17, 2010
Page 2
1. Call Meeting to Order
2. Public Comments
3. Old Business
4. Claims Management
'a. Review new and outstanding claims
5. Reports and Announcements
*a. Capacity Fee Deferral Program
*b. Delinquerit Capacity Fees
c. CCCERA Board Meeting Regarding Depooling (Item 6.a.1) in Board
Binder)
d. Review FY 2010-11 Operations and Maintenance Budget and Debt
Service Fund Budget (Item 7.a. in Board Binder)
6. Review Expenditures (Item 3.a. in Board Binder)
7. Closed Session
Conference with Legal Counsel -Anticipated Litigation -initiation of litigation
pursuant to Government Code Section 54956.9(c) (Item 10.b. in Board Binder)
One potential case.
8. Adjournment
* Attachment
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Central Contra Costa Sanitary District
May 14, 2010
TO: BOARD BUDGET AND FINANCE COMMITTEE
VIA: JAMES M. KELLY, GENERAL MANAGER
ANN E. FARRELL, DIRECTOR OF ENGINEE NG
~CURTIS W. SWANSON, ENVIRONMENTAL SERVICES DIVISION (~ ~j
MANAGER ~,,n ~ /~ lh~
FROM: JARRED MIYAMOTO-MILLS, PRINCIPAL ENGINEER Y~'l"~~{ ~~
SUBJECT: REPORT ON THE ONE-YEAR PILOT PROGRAM FOR DEFERRED
PAYMENT OF CONNECTION FEES FOR NEW HOMES AND BUILDINGS
CONSTRUCTED ON VACANT PARCELS
On June 4, 2009, the Board of Directors directed staff to conduct aone-year pilot program
to allow deferral of Capacity Fees and Annexation Charge payment for connection of new
homes and buildings constructed on vacant parcels. Unless the program is extended by
the Board, it will expire on June 4, 2010. This memo discusses program usage (the extent
to which connectors have opted to defer fees and charges, the amount of outstanding
deferred fees), the cost to administer the program, the number of deferred fees due that
are delinquent, and staffs recommendation to allow the program to expire.
Program Usage: To date, two developers (Shapell Homes and Brookfield Homes) and
three owners of individual lots have opted to defer fees and charges under the pilot
program. Amounts that have been deferred and paid to date are as follows:
Owner Number of
Units Amount
Deferred Amount
Paid Amount
Outstanding
Shapell Homes 180 $1,078,670 $ 518,375 $ 560,295
Brookfield Homes 34 239,066 239,066 0
Gallegos 1 5,298 0 5,298
Bragg 1 5,298 0 5,298
Maggi 4 21,192 0 21,192
TOTALS: 220 units $1,349,524 $ 757,441 $ 592,083
Report on the Pilot Program for
Deferred Payment of Connection Fees
May 14, 2010
Page 2 of 2
While Brookfield Homes and three owners of very small projects initially made use of the
program in the summer of 2009, only one owner (Shapell Homes) has used the program
since that time.
Cost of Program: Writing procedures, creating documents and completing legal review
required about $6,000 in staff labor and District Counsel effort; this was a one time cost.
Ongoing management and administration of the program including preparing and
notarizing documents, corresponding with owners, recordkeeping and recording of
agreements and releases at the office of the Contra Costa County Recorder has required
about 220 hours of staff time to date at a cost of about $27,500 including the District's
standard overhead. In addition, the opportunity cost of forgone interest is about $6,500.
So, the total cost for the one-year pilot program has been about $40,000 or about $180 per
unit where fees were deferred. On an ongoing basis, the cost would be about $155/unit.
Delinquencies: Fees for one of the two single unit deferrals (Gallegos) is currently
delinquent. This issue will be addressed at the hearing at the June 3rd Board meeting
regarding collecting delinquent amounts on the property tax roll.
Recommendation: Staff recommends that the program be allowed to expire due to the.low
usage and program cost.
JM2:nap
cc: Board of Directors
Elaine Boehme
N:\ENVRSRV\Fee Deferral Program 6-09\05-14-2010 Memo to Finance Committee JM2Rev.doc
S,b,
Central Contra Costa Sanitary District
May 14, 2010
TO: BUDGET AND FINANCE COMMITTEE
VIA: JAMES M. KELLY, GENERAL MANAGER
,ANN FARRELL, DIRECTOR OF ENGINEE ING
1111 CURTIS W. SWANSON, ENVIRONMENTAL SERVICES
MANAGER
FROM: JARRED MIYAMOTO-MILLS, PRINCIPAL ENGINEER
SUBJECT: DELINQUENT CONNECTION FEES
DIVISION
o~~J
t~ (ypi0
A public hearing to consider placing delinquent fees and charge on the Contra Costa
County tax roll for collection is scheduled for the June 3rd Board Meeting. The purpose
of this memo is to inform the Budget and Finance Committee of two specific cases
where the Board will be asked to place delinquent connection fees on the tax roll.
Delinquencies for consideration at the June 3, 2010 Board meeting:
Property: 1615 Lawrence Road, Danville (new single family residence)
Owed by: Rick and Carina Deherrera
Amount: $14,205.82
For: Capacity fees, application and inspection fees, sewer service
charges and reimbursement fees, plus a 10% Delinquency Charge
and interest at 1'/z% per month through May 30, 2010
The Deherreras applied for a permit for a lateral extension prior to connection,
and a permit for a sewer connection for a new single-family residence on the
above property in 2003. They signed a Special Approval agreement for the
lateral extension on November 7, 2003. Under the Special Approval, the
Deherreras agreed to pay connection fees for the property and to call for CCCSD
inspection of the building connection after receiving favorable town inspection of
the building waste plumbing and roof. The building was completed and the Town
of Danville signed off on the building permit on April 12, 2006, however, the
outstanding fees were not paid and the connection was not inspected. The
unpaid fees were discovered during a routine review of District permit application
records. ~
Staff notified the Deherreras of the unpaid fees. When the Deherreras proposed
to pay $500 per month on the delinquent amount, staff denied their request,
citing that: 1) staff is not authorized to allow installment payments; the
Delinquent Connection Fees
May 14, 2010
Page 2 of 2
Deherrera's failure to meet the obligations specified in the Special Approval
agreement, and the need to pay the reimbursement fees to the installers of the
trunk sewer extension to which the Deherrera property connected. A public
hearing to consider placing the delinquent amount on the Contra Costa County
tax roll for collection is scheduled for the June 3rd Board Meeting.
The Deherreras have hired an attorney and may attend the May 20th and/or
June 3rd Board meeting to request a payment plan.
2. Property: 2394 Saddleback Drive, Danville (new single family residence)
Owed by: Shawn and Maria Gallegos
Amount: $6,469
For: Capacity fees, annexation fee, and sewer service charges plus a
10% Delinquency Charge and interest at 1'/z% per month through
May 30, 2010
After Board approval of the Fee Deferral Program, and prior to development of
the recordable documents needed to implement the program, Shawn and Maria
Gallegos signed a Special Approval agreement to execute the promissory note
and recordable agreement required for participation in the program. Staff sent
the required documents to the Gallegos on July 27, 2009. Staff has attempted to
follow up on several occasions, but the promissory note and agreement have not
been received, and there has been no communication from the Gallegos. A
public hearing to consider placing the delinquent amount on the Contra Costa
County tax roll for collection is scheduled for the June 3rd Board Meeting.
EM/JM2:
cc: Board of Directors
Elaine Boehme
N:\ENVRSRV\Permits\Illegal Connections & Delinquencies\Rev 2 Memo re Delinquencies on June 3 Board meeting.doc