HomeMy WebLinkAbout08.a. Authorize installment agreement with Senro Sushi for capacity feesCentral Contra Costa Sanitar District
BOARD OF,DIRECTORS
POSITION PAPER
Board Meetin Date.* March 17, 2011
Sub AUTHORIZE THE GENERAL MANAGER TO EXECUTE AN AGREEMENT
FOR INSTALLMENT PAYMENT. OF CAPACITY FEES FOR SENRO SUSHI AT 2475
SAN RAMON VALLEY BOULEVARD
Submitted B Initiatin Dept./Div.:
Jarred Mi Principal En En i neeri n ron mental Services
REVIEWED AND RECOMMENDED FOR BOARD ACTION:
J. mi y arnoto-mills C. Swanson Farrell K. Alm mes M. K 11
eneral Ma a
ISSUE: District Code Section 6.12-030 D. states that pa of capacit fees shall
be made at the.time the District. reviews -buildin plans for a chan of use. District
Code Section 1 -.24-010 states that the Board ma modif or suspend or relieve the
application of an ordinance or re if it finds that the ordinance or re is
unjust or ine because of special circumstances. District Code Section 1.24.040
states that District Code does not prevent a special a when the Board finds
that it is necessar and of benefit to the District. Board approval is re to authorize
the General Mana to. execute an a for installment pa of capacit fees
that are owed b a new business, Senro Sushi, at 2475 San Ramon Valle Boulevard in
San Ramon.
RECOMMENDATION: Authorize t General Mana to execute an a for
installment pa of capacit fees owed b Senro Sushi at 2475 San Ramon Valle
Boulevard in San Ramon.
FINANCIAL IMPACTS: If the District enters into an unsecured installment pa
a with the bu owners, the total capacit fees that could eventuall be
collected.over the two y ears of the a are $31,784.78.
It is possible the new restaurant could close or leave the service area before that
amount is paid. If that happens, staff would calculate the RUE e of the
capacit fees collected up to that point and would credit those RUEs. to the propert A
subse business in the same location would then be re to pa an additional
capacit fees due, either upon openin or under an arran such as a Capacit
Use A
It is also possible that the business owners could stop makin pa but sta in
business. If that happens,the District's options would be: 1 ne a new pa
schedule with the business owners; 2 place a lien on an of the business owners'
propert in the state pursuant to Health and Safet Code Section 652.0.12; or 3
terminate sewer service to the business.
N:\ENVRSEC\Position Papers\Millier\201 1\PP Senro Sushi promissor Note FINAL JM2 3-17-1 1.doc Pa I of 2 .
POSITION PAPER
Board Meeting Date: March 17, 2011
Subject AUTHORIZE THE GENERAL MANAGER TO EXECUTE AN AGREEMENT
FOR INSTALLMENT PAYMENT OF CAPACITY FEES FOR SENRO SUSHI AT 2475
SAN RAMON VALLEY BOULEVARD
ALTERNATIVESICONSIDERATIONS: The Board may decline to enter into an
unsecured installment payment agreement with this business. In this case, it is
possible that the business would not open, and no capacity fees would be collected
unless and until a subsequent business decided to open in this location.
BACKGROUND: The business owners, Vincent and Cathy Li, intend to open a new
restaurant, Senro Sushi, at 2475 San Ramon. Valley Boulevard, Suite 107, in San
Ramon. They have signed a lease on the space, which formerly housed a sandwich
shop which paid capacity fees at the "deli" rate factor. The new business fits the
District's .definition of a restaurant. The net capacity fees due are $81,784.78. The
business owners have stated that they are unable to pay the capacity fees at this time.
Staff suggested that a Capacity Use Agreement be' used to allow payment of the
capacity fees over a 15 -year period, however, the property owner has declined to sign
an agreement.
The tenant - business owners have proposed a 24 -month unsecured installment
payment plan for the capacity fees. Other fees due, including sewer service charge and
inspection fees, would be paid at the time of permit issuance.
The Budget and Finance Committee discussed the business owners' proposal at its
February 28, 2011 and March 10, 2011 meetings, and recommends that the Board
approve the proposed agreement.
RECOMMENDED BOARD ACTION: Authorize the General Manager to execute an
agreement for installment payment of capacity fees for Senro Sushi at 2475 San
Ramon Valley Boulevard in San Ramon.
N: IENVRSEMPosition Papers\MillierWl 1 \PP Senro sushi promissory Note FINAL JM2 3- 17- 11.doc Page 2 of 2