HomeMy WebLinkAbout02. Talking points from Daphne ReeseDistrict Code 1.24.020 allows: "The relief from a charge, ordinance or regulation if it finds that the charge, ordinance or regulation is unjust or inequitable because of special circumstances." District Code 6.24.020 states the Basis of the Sewer Service Charge as: A. "a fair and equitable distribution of sewer system cost to users of the sewer system." C. The Charges for nonresidential users shall be based on the use of the sewer system for the previous calendar year. Board member Nedjedly has previously asked that he would rather the board be given the chance to deal with problems. I think this information would also be of interest to the Contra Costa County Taxpayers Association, California Common Sense and The Contra Costa Times Local Government Reporter Lisa Vorderbrugeen. Number One: Is the board aware that multimillion dollar swim and tennis clubs, swim schools, homeowner association and subdivision swim clubs do not have to pay sewer service charge? As a rate payer I question why swim clubs? Rate payers would want all who benefit from the sewer system to pay equitably. If someone is to be relieved of SSC it would never be the above category. Working at the permit counter here at the District I have fielded numerous call from the elderly, low income, home owners under water and non profits asking if there was some program for relief from CCCSD rates, fees or charges. Should they be told to open a swim club for relief? At the very least, there is a minimum charge that can and should be applied to these clubs. The larger clubs would be paying substantially more than minimum charge if there water usage was the basis for charge as it is with other commercial businesses. Currently if you cap the sewer line and leave the lot empty, you continue to be billed for sewer. Only the abandonment of the sewer lateral relieves you of the obligation to pay the SSC. These clubs should pay their share. Rate payers would want the Board to require all who benefit from connection to pay in. The Board should be made aware of any users of the sewer system who do not have to pay the sewer service charge. An audit of the Environmental Services Division is needed. There is no sewer service charge manual or standard operating procedures where one would be able to find the rules or basis for who does or doesn't pay sewer service charge. Last, the Board should be aware that long time staff member with input to rates and charges has been aware of this for some time. That same staff member has been involved in swim meets and local swim clubs. Number Two There is no reconciliation or follow up on application for connections to sewer, commercial applications, repairs or alteration permits. The rate payers would not want the current lax treatment of unpaid fees and lack of follow up on permits and applications. They would expect that all applicants are required to follow the rules, pull permits and pay fees and that there is some oversight and enforcement of the fees. We have rates and charges due back to 1996 that have not been followed up on. There is no system to review or reconcile unpaid permits or fees. Staff have no guidance or policy on unpaid fees permits and application. The unpaid fees are ignored as a policy. A report was run by a business analyst with Sungard (the software system for permits, plan review and sewer billing) to look at the reconciliation of applications with rates and charges due since 1996. That report showed over 20 million in un- reconciled charges due. Even if 90% of these uncollected charges are explainable, there is a large sum of money uncollected. When I tried to openly discuss the problem with the business analyst, I was told to be quiet by my supervisor and shut down repeatedly and had to leave the session with the analyst. I don't believe the Board is aware of the extent of non paid rates and charges and uncollected capacity fees. I believe the rate payers would want accountability in this area. An audit of the Environmental Services Division is needed. Number Three The rates and charge are arbitrarily and capriciously administered. The staff and more importantly the rate paying public doesn't understand them and is not sure of the amount to charge or pay. Applicants pay varying amounts even within the same rate group. Staff is never sure of the amount to charge. The most savy and informed applicant will usually pay less. If an applicant doesn't know the system, he will routinely pay more. For example: office to medical office. If you ask for a special study, you will almost certainly pay no capacity fees. Another example: restaurants meeting certain requirements are supposed to pay full restaurant charge. If they asked for a special study, they pay less. The cost of the special study is $533.00 Another example is second living units. The rate payer who has the disabled brother and builds an attached 600 square foot second living unit to accommodate him and remove him from a care facility is charged $6000 in capacity fees and an additional yearly sewer service chare. The rate payer building a 1400 square foot attached second living unit to accommodate their catering staff when they throw large parties is given a pass on the fees (just do a title document saying you won't rent it.) The current rate schedule and ratios for capacity fees by user group (office, retail, restaurant, etc) was last reviewed in the mid 90's. Since then, water usage on the whole has decreased by most industries. It's time to review these factors and charges. Currently we rely on the lack of knowledge of the applicant and hope that they don't question the charges. Only those who do question the charges and threaten to complain are let in on the ways around the fees. An audit of the Environmental Services Division is needed. Conclusion I fully understand as a rate payer and an employee here that the District has a plant to run. The money involved and the principles of equity matter as well and are important to the rate payers. They expect the equitable application of the SSC, They expect that we not give a free pass to those who don't pay fees or pull permits, They expect the rates and charges to be understandable and not arbitrarily and capriciously applied. I thank you for your time.