The URL can be used to link to this page

Home My WebLink About05.a.2) Monsoon Masala - unpaid charges on tax roll and establish lienCentral Contra Costa Sanitary DistrictQ .Z ' BOARD OF DIRECTORS POSITION PAPER Board Meeting Date: June 16, 2011 Subject: CONDUCT A PUBLIC HEARING TO CONSIDER RESOLUTIONS CONCERNING DELINQUENT CHARGES FOR THE PROPERTY AT 2375 CONTRA COSTA BOULEVARD, PLEASANT HILL, WHICH WOULD DIRECT DISTRICT STAFF TO: 1) PLACE DELINQUENT CHARGES ON THE 2011 -12 CONTRA COSTA COUNTY TAX ROLL FOR COLLECTION; 2) RECORD A CERTIFICATE OF UNPAID CHARGES TO ESTABLISH A LIEN ON THE SUBJECT PROPERTY; AND /OR 3) TERMINATE SEWER SERVICE BY DISCONNECTION OF THE PROPERTY FROM THE PUBLIC SEWER ON AUGUST 1, 2011 Submitted By: Initiating Dept /Div.: Jarred Miyamoto - Mills, Principal Engineer Engineering /Environmental Services REVIEWED AND RECOMMENDED FOR BOARD ACTION: -t-' -Pkl - � t J. Mi moto -Mills Swanson ,9Ca!'A. Farrell K. Alm ames M. WdIly, general Manager ISSUE: A resolution of the Board of Directors passed by four affirmative votes is needed to place delinquent charges on the 2011 -12 Contra Costa County tax roll. Resolutions passed by a majority (three affirmative votes) are needed to: 1) record Certificates of Unpaid Charges to establish liens on property owned by persons who have not paid applicable fees and charges; and /or 2) to terminate sewer service by disconnection of properties for which fees and charges are delinquent. RECOMMENDATION: Conduct the public hearing concerning delinquent amounts owed to the District for the property at 2375 Contra Costa Boulevard, Pleasant Hill. Adopt resolutions directing staff to: 1) place the delinquent amounts on the 2011 -12 Contra Costa County tax roll for collection; 2) record a Certificate of Unpaid Charges to establish liens on the subject property (APN 150 - 300 - 012 -5). FINANCIAL IMPACTS: The first resolution would provide for collection of approximately $28,000 in unpaid capacity and other fees for the subject property, which was converted from retail to restaurant use without a District permit or payment of applicable fees and charges, on the 2011 -12 Contra Costa County property tax roll. Placing the delinquent amounts on the property tax roll for collection will ensure that the District collects the fees and charges due. The second listed resolution would direct staff to record a Certificate of Unpaid Charges to establish a lien on the subject property. The resolution would ensure collection of the delinquent amounts at or before eventual sale of the property. N: \ENVRSEC \Position Papers \Miyamoto- Mills\2011 \6 -16 -11 \FINAL PPs - Delinquencies 6 -16 -11 \Monsoon Masala \FINAL PP- Public Hearing re delinquency -2375 Contra Costa Blvd 6 -16 -2011 jm2.doc Page 1 of 4 POSITION PAPER Board Meeting Date: June 16, 2011 subject CONDUCT A PUBLIC HEARING TO CONSIDER RESOLUTIONS CONCERNING DELINQUENT CHARGES FOR THE PROPERTY AT 2375 CONTRA COSTA BOULEVARD, PLEASANT HILL, WHICH WOULD DIRECT DISTRICT STAFF TO: 1) PLACE DELINQUENT CHARGES ON THE 2011 -12 CONTRA COSTA COUNTY TAX ROLL FOR COLLECTION; 2) RECORD A CERTIFICATE OF UNPAID CHARGES TO ESTABLISH A LIEN ON THE SUBJECT PROPERTY; AND /OR 3) TERMINATE SEWER SERVICE BY DISCONNECTION OF THE PROPERTY FROM THE PUBLIC SEWER ON AUGUST 1, 2011 Since adoption of the third listed resolution would result in the closure of two businesses, negating most of the delinquent fees and charges, and the loss of subsequent Sewer Service Charge revenue from the two businesses, it is not recommended. ALTERNATIVES /CONSIDERATIONS: The Board could decline to adopt any or all of the resolutions. To do so would result in the need for further staff efforts to collect the charges by other means. The business owner has recently proposed making payments of $1,000 per month starting in June 2011, and continuing until the debt is discharged, and has requested that the District waive the delinquent charge and penalty amounts, which currently total $5,454.08. The Board could consider this proposal or direct staff to work with tenant on an alternative payment plan. Since adoption of the third listed resolution (termination of sewer service by disconnection of the subject property from the public sewer) would result in the closure of the two businesses, which would negate most of the delinquent amounts and result in loss of subsequent Sewer Service Charge revenue from these two businesses, it is not recommended. BACKGROUND: The delinquent charges are for a property located at 2375 Contra Costa Boulevard in Pleasant Hill, where a business owner ( "tenant ") converted a former retail space into a restaurant (Monsoon Masala), and opened for business in 2007 without obtaining a District permit or paying applicable fees and charges totaling $42,249.75. After staff identified the situation, it was suggested that the tenant and property owner enter into a Capacity Use Agreement with the District, which would provide for payment of the fees owed over a 15 -year period. The property owner at the time declined to participate in an agreement. Consequently, the tenant requested to pay the amount due by making installment payments under a special installment payment plan. The plan was implemented under a promissory note signed in January 2008, which provided N: \ENVRSEC \Position Papers \Miyamoto- Mills\2011 \6 -16 -11 \FINAL PPs -Delinquencies 6 -16 -11 \Monsoon Masala \FINAL PP- Public Hearing re delinquency -2375 Contra Costa Blvd 6 -16 -2011 jm2.doc Page 2 of 4 POSITION PAPER Board Meeting Date: June 16, 2011 Subject CONDUCT A PUBLIC HEARING TO CONSIDER RESOLUTIONS CONCERNING DELINQUENT CHARGES FOR THE PROPERTY AT 2375 CONTRA COSTA BOULEVARD, PLEASANT HILL, WHICH WOULD DIRECT DISTRICT STAFF TO: 1) PLACE DELINQUENT CHARGES ON THE 2011 -12 CONTRA COSTA COUNTY TAX ROLL FOR COLLECTION; 2) RECORD A CERTIFICATE OF UNPAID CHARGES TO ESTABLISH A LIEN ON THE SUBJECT PROPERTY; AND /OR 3) TERMINATE SEWER SERVICE BY DISCONNECTION OF THE PROPERTY FROM THE PUBLIC SEWER ON AUGUST 1, 2011 for the tenant to make a down payment of approximately $4,800, and monthly payments of $1,630. The District received payments from the tenant until November 2008, when a one -year suspension in the payment plan was requested due to economic hardship brought about by the recession. Staff agreed to the suspension, which called for payments to resume in February 2010. However, when no further payments were received, staff then pursued efforts to collect the remaining amount owed, $22,806.88. In August 2010, these charges became delinquent. In November 2010, the property was sold to Loja Pleasant Hill LLC ( "current owner "), as part of its acquisition of a large part of the downtown Pleasant Hill redevelopment area. Staff has continued its efforts to collect the delinquent charges, however, as of April 2011, the amount due was $28,260.96, including a 10 percent delinquency charge and penalty at 1'/2 percent per month, as provided in District Code. The business owner has recently proposed making payments of $1,000 per month starting in June 2011 and continuing until the debt is discharged, and has requested that the District waive the delinquent charge and penalty amounts, which currently total $5,454.08. The Board could consider this proposal or direct staff to work with tenant on an alternative payment plan. Staff recommends, however, that the Board adopt a resolution directing staff to collect the delinquent charges by placing them on the property owner's 2011 -12 tax bill. Staff also recommends that the Board adopt a resolution directing staff to record a Certificate of Unpaid Charges to establish a lien on the subject property, as allowed under Health and Safety Code Section 6520.12. The lien would be released by the District upon payment of the delinquent amount, or eventual sale of the property, whichever occurs first. The lien would expire after ten years, but may remain in effect indefinitely until it is released, if it is periodically extended. Staff has conducted dye- testing and television inspection of the subject property's side sewer to determine the feasibility of physically disconnecting the restaurant from the sanitary sewer. Termination of sanitary sewer service would likely result in an N: \ENVRSEC \Position Papers \Miyamoto- Mills\2011 \6 -16 -11 \FINAL PPs - Delinquencies 6 -16 -11 \Monsoon Masala \FINAL PP- Public Hearing re delinquency -2375 Contra Costa Blvd 6 -16 -2011 jm2.doc Page 3 of 4 POSITION PAPER Board Meeting Date: June 16, 2011 subject. CONDUCT A PUBLIC HEARING TO CONSIDER RESOLUTIONS CONCERNING DELINQUENT CHARGES FOR THE PROPERTY AT 2375 CONTRA COSTA BOULEVARD, PLEASANT HILL, WHICH WOULD DIRECT DISTRICT STAFF TO: 1) PLACE DELINQUENT CHARGES ON THE 2011 -12 CONTRA COSTA COUNTY TAX ROLL FOR COLLECTION; 2) RECORD A CERTIFICATE OF UNPAID CHARGES TO ESTABLISH A LIEN ON THE SUBJECT PROPERTY; AND /OR 3) TERMINATE SEWER SERVICE BY DISCONNECTION OF THE PROPERTY FROM THE PUBLIC SEWER ON AUGUST 1, 2011 immediate order to close the restaurant from Contra Costa Environmental Health. Another business, Escobar Tailors, is also connected to the same private side sewer that serves the restaurant, and it is not feasible to disconnect the restaurant without also disconnecting the restroom serving Escobar Tailors. Further, disconnection of the businesses would result in negating most of the delinquent amounts, and the loss of subsequent Sewer Service Charge revenue from these two businesses. For these reasons, staff recommends against termination of service by disconnection. The property owner and tenants have been notified of the public hearing as required by the California Health and Safety Code and the District Code. Notices for the Public Hearing were published in the Contra Costa Times and the San Ramon Valley Times and posted at the District's offices and website. The current status of this matter will be discussed with the Budget and Finance Committee at its meeting on Monday, June 13, 2011. RECOMMENDED BOARD ACTION: Conduct a public hearing concerning delinquent charges for the property at 2375 Contra Costa Boulevard, Pleasant Hill, owed to the District for the Monsoon Masala Restaurant. Adopt resolutions directing staff to: 1) place the delinquent amounts on the 2011 -12 Contra Costa County tax roll for collection; 2) record a Certificate of Unpaid Charges to establish liens on the subject property (APN 150 - 300 - 012 -5). N: \ENVRSEC \Position Papers\ Miyamoto- Mills\2011 \6- 16- 11 TINAL PPs -Delinquencies 6 -16 -11 \Monsoon Masala \FINAL PP- Public Hearing re delinquency -2375 Contra Costa Blvd 6 -16 -2011 jm2.doc Page 4 of 4 RESOLUTION NO. 2011 -020 A RESOLUTION OF THE CENTRAL CONTRA COSTA SANITARY DISTRICT DIRECTING THAT DELINQUENT CHARGES BE COLLECTED ON THE 2011 -12 CONTRA COSTA COUNTY TAX ROLL WHEREAS, certain properties have been connected to Central Contra Costa Sanitary District (CCCSD) public sanitary sewers without payment of appropriate capacity fees and other fees and charges when due; and WHEREAS, the CCCSD Code provides that CCCSD may elect to collect delinquent charges on the tax roll as provided by Section 5470 and following, of the California Health and Safety Code; and WHEREAS, it is considered economical and efficient to collect delinquent charges on the Contra Costa County tax roll; NOW, THEREFORE, be it resolved by the Board of Directors of the Central Contra Costa Sanitary District that delinquent charges as listed in Exhibit "A" attached hereto and by this reference made a part hereof, are to be collected on the 2011 -12 Contra Costa County Tax Roll. Passed and adopted this 16th day of June 2011 by the Board of Directors of the Central Contra Costa Sanitary District by the following vote: AYES: Members: NOES: Members: ABSENT: Members: Barbara D. Hockett President of the Board of Directors Central Contra Costa Sanitary District County of Contra Costa, State of California COUNTERSIGNED: Elaine R. Boehme, CIVIC Secretary of the District Central Contra Costa Sanitary District County of Contra Costa, State of California Approved as to form: Kenton L. Alm, Esq. Counsel for the District EXHIBIT A DELINQUENT CHARGES — CERTIFICATE OF UNPAID CHARGES TO ESTABLISH A LIEN ON THE PROPERTY OWNED BY LOJA PLEASANT HILL LLC AT 2375 CONTRA COSTA BOULEVARD, PLEASANT HILL, CALIFORNIA, APN 150 - 300 -012 -5 CUSTOMER NAME PROPERTY ADDRESS DELINQUENT CHARGE Loja Pleasant Hill 2375 Contra Costa Boulevard, Pleasant Hill, $28,260.96 for unpaid restaurant capacity fees, LLC California delinquent charge and penalty, owed for added (APN 150 - 300 - 012 -5) burden due to change in use TOTAL DELINQUENT CHARGES: $28,260.96 RESOLUTION NO. 2011 -021 A RESOLUTION OF THE CENTRAL CONTRA COSTA SANITARY DISTRICT DIRECTING THAT A CERTIFICATE OF UNPAID CHARGES BE RECORDED TO ESTABLISH A LIEN ON THE PROPERTY AT 2375 CONTRA COSTA BOULEVARD, PLEASANT HILL, CA (APN 150 - 300 - 012 -5) OWNED BY LOJA PLEASANT HILL LLC WHEREAS, Central Contra Costa Sanitary District ( CCCSD) staff has diligently pursed collection of certain unpaid capacity fees and other fees and charges when due, these efforts have been unsuccessful in some cases and the unpaid amounts are now delinquent; and WHEREAS, the California Health and Safety Code Section 6520.12 provides that CCCSD may elect to record a Certificate of Unpaid Charges to establish a lien on a property owned by persons who have not paid applicable fees and charges. NOW, THEREFORE, be it resolved by the Board of Directors of the Central Contra Costa Sanitary District that a Certificate of Unpaid Charges be recorded to establish a lien on the property listed in Exhibit "A" attached hereto and by this reference made a part hereof. Passed and adopted this 16th day of June, 2011 by the Board of Directors of the Central Contra Costa Sanitary District by the following vote: AYES: Members: NOES: Members: ABSENT: Members: Barbara D. Hockett President of the Board of Directors Central Contra Costa Sanitary District County of Contra Costa, State of California COUNTERSIGNED: Elaine R. Boehme, CMC Secretary of the District Central Contra Costa Sanitary District County of Contra Costa, State of California Approved as to form: Kenton L. Alm, Esq. Counsel for the District EXHIBIT A DELINQUENT CHARGES — CERTIFICATE OF UNPAID CHARGES TO ESTABLISH A LIEN ON THE PROPERTY OWNED BY LOJA PLEASANT HILL LLC AT 2375 CONTRA COSTA BOULEVARD, PLEASANT HILL, CALIFORNIA, APN 150 - 300 -012 -5 CUSTOMER NAME PROPERTY ADDRESS DELINQUENT CHARGE 2375 Contra Costa $28,260.96 for unpaid restaurant capacity fees, Loja Pleasant Hill Boulevard, Pleasant Hill, delinquent charge and penalty, owed for added LLC California burden due to change in use (APN 150 - 300 - 012 -5) TOTAL DELINQUENT CHARGES: $28,260.96 RESOLUTION NO. 2011 -022 A RESOLUTION OF THE CENTRAL CONTRA COSTA SANITARY DISTRICT DIRECTING THAT SANITARY SEWER SERVICE BE TERMINATED BY DISCONNECTION OF PROPERTY AT 2375 CONTRA COSTA BOULEVARD IN PLEASANT HILL (APN 150 - 300 - 012 -5) FROM THE SANITARY SEWER COLLECTION SYSTEM WHEREAS, certain properties have been connected to Central Contra Costa Sanitary District ( CCCSD) sanitary sewers without payment of appropriate capacity fees and other fees and charges when due; and WHEREAS, the CCCSD Code Section 1.08.040 (Enforcement) and the California Health and Safety Code Section 6523.2 provide that CCCSD may elect to terminate service to property in which a violation of any rule or regulation is found to exist; and WHEREAS, CCCSD has complied with the hearing and notice requirements of California Health and Safety Code Section 6523.2; NOW, THEREFORE, be it resolved by the Board of Directors of the Central Contra Costa Sanitary District that sanitary sewer service be terminated by disconnection of the property at 2375 Contra Costa Boulevard in Pleasant Hill, California (APN 150- 300 -012- 5) from the sanitary sewer collection system as of August 1, 2011. Passed and adopted this 16th day of June, 2011 by the Board of Directors of the Central Contra Costa Sanitary District by the following vote: AYES: Members: NOES: Members: ABSENT: Members: Barbara D. Hockett President of the Board of Directors Central Contra Costa Sanitary District County of Contra Costa, State of California COUNTERSIGNED: Elaine R. Boehme, CMC Secretary of the District Central Contra Costa Sanitary District County of Contra Costa, State of California Approved as to form: Kenton L. Alm, Esq. Counsel for the District