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HomeMy WebLinkAbout06.a.3) (Handout) Installment Payment Agreements for Past Due Fees(MQhdOU4) (0-0:5) Item No. 6.a.3 Installment Payment Agreements for Past Due Fees Jarred Miyamoto -Mills December 15, 2011 Central Contra Costa Sanitary District Current Installment Payment Programs • Fee Deferral for lots in new subdivisions. • Capacity Fees for septic tank conversions. • Capacity Fees in AVADs. • Capacity Use Charge Program for businesses with highest Capacity Fees. BCD_ Agreements for Special Cases • Senro Sushi in San Ramon - $31,800 (2 years) • Monsoon Masala in Pleasant Hill - $28,000 (12 years) • DeHerrera Home in Danville - $14,300 (2 years) ma Recently Identified Past Due Fees • How are past due fees identified? - Permit staff review of applications filed where no permit has been issued . - Development Services Inspectors note sewer construction activity where there is no active permit. - A customer applies for a new project on a parcel with an outstanding application. • What is the magnitude of the problem? - Staff currently has 28 cases under review. - It is possible that over 100 cases will be identified. _ D Recently Identified Past Due Fees • Should an installment payment option be available for past due fees? - An application was filed, but no permit was obtained or fees paid. - A connection or added burden was imposed without an application. - The current property owner is not the party who failed to pay the fees when due. Payment Option for Past Due Fees • Advantages: - Might facilitate the collection of past due fees. - Could reduce impact where the current property owner is not the party who failed to pay the fees when due. • Disadvantages: - Could be considered inequitable since most customers pay the fees when first due. _J V A Current Request • 66 Alberta Terrace, Walnut Creek - Second unit built and connected to sewer without a permit or payment of $5,600 in connection fees. - Property owner has requested to pay over 10 years at 6% on the property tax bill (Similar to the program for septic tank conversions). Options • Continue current practice of placing delinquent fees on the property tax roll for collection. • Grant the property owner at 66 Alberta Terrace the requested payment agreement. (An item on a future agenda would be required.) • Consider whether the Board should provide additional staff authority to collect past due fees using installment payment agreements under prescribed guidelines. :� Possible Guideline • Interest per the Schedule of Rates and Charges (currently 6 %). • Allowed terms could vary with amount owed, for example: - Less than $5,000 .......................3 years - $5,000 - $ 14,999 ........................5 years - More than $15,000 .....................10 years ..ate Questions ... . 5