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HomeMy WebLinkAbout06.a.2) (Handout) Bartle Wells Associates reporte, BARTLE WELLS ASSOCIATES Independent Public Finance Advisors Background District operates collection and treatment system serving 462,000 residents in 146 square mile service area Lj District administers permitting, inspection and fee collection for all new connections 0 November 2011 report by software vendor indicated large number of unresolved, entered but uncollected, permit - related entries in the system A District employee made presentation to the Board recommending an audit of practices and policies BWA was engaged to review relevant documentation, interview permit counter and management staff and develop independent findings and recommendations BWA Audit contains eight "Key Findings" 0�.a. Z) OlanAns) L W 1 BWA Audit Included: Meetings with permit counter audit team Individual interviews with permit counter staff * Review of current District rates, fees and other relevant documentation Survey of eight similar wastewater agency "peers" Written report of findings and recommendations U Key Audit Finding #1 Accumulated entered, but uncollected, permit - related fees in SunGardT"" should be resolved right away , Initial report showed up to $20.5 million in unresolved items in SunGardM dating back to 1993 (when software was implemented) rAnalysis by staff is in process. From a review of 166 applications with fees over $10,000, about $14 million has been determined to be a result of cancelled and closed quotes, permit applications or clerical errors which should not be included as outstanding fees. Items under $10,000 currently being reviewed. Recommendation — Identify and resolve all outstanding permit - related fee issues in the SunGard'm system. Consider retaining an outside specialist familiar with the SunGard'"'system to assist staff in completing this task in an expeditious manner. If necessary, review and update District policies and procedures for collecting outstanding fees. B �V Key Audit Finding #2 Regular follow up on outstanding CCCSD permits is needed Need to develop and implement procedures for regular follow up on permit applications going forward. Peer survey showed that many similar agencies produce regular reports on the status of outstanding permits. Recommendation — Implement procedures for routine aging of permits and periodic follow up on new permit applications. ' Key Audit Finding #3 Timing of capacity fee payments District currently collects fees after "roof and rough plumbing" inspections are done =Some builders do not contact District after "roof and rough plumbing" inspection, so permit is not closed and fees are not paid Peer survey showed most agencies collect fees at the time of plan review The District currently collect fees for tenant improvement work at the time of plan review Recommendation — Consider collecting all capacity fees at the time of plan review instead of after "Roof and Rough Plumbing" inspection. I'. �V 41' A= Key Audit Finding #4 Agreements are needed with the County and cities within CCCSD to require CCCSD sign -off before issuance of certificates of occupancy (COs) /final permit inspections All of the wastewater agencies surveyed have sign -off agreements with the cities in their service area Builders in CCCSD can get COs without paying CCCSD fees /getting final permit inspections County and city building departments have been resistant to this when approached in the past Recommendation — Secure agreements with the County's and City's building departments within the District to require District inspectors to sign -off before final building permit inspection and issuance of a CO. 7I 1 q► . Key Audit Finding #5 Review and standardization of permit counter /capacity fee procedures is needed Recurring theme in interviews with staff Need a comprehensive set of standard operating procedures and definitions • Special Studies • Historical Research • Mixed -use Parcels • Restaurants v. Delicatessens • Second Living Units Cap and Reconnect Permits Capacity Use Charge Program Fee Deferral and Installment Payment Plans Recommendation — Develop a standard manual of procedures and definitions for the permit counter staff to use T1 -k Key Audit Finding #6 Staff needs additional training on SunGard' software uCurrently using old "green screen" version of software L.2011 SunGardTm report found that District is not fully utilizing software; additional training could save time and improve customer service levels nInspectors could be trained to use system in field Recommendation — Provide staff with additional training on the SunGard'"' System as appropriate. Request a proposal from SunGard'" to provide training to staff to allow further utilization of the software. Consider upgrading to a more user-friendly version of the software if the cost is reasonable and funds are available. Alk Key Audit Finding #7 Eliminate current exemption for swim clubs ©1977 Board Resolution exempts swimming pools from paying sewer service charges. (Costs were considered included in residential sewer service charges.) a Pools are not typically connected to sewer system, but swim clubs may have toilets, showers and food prep areas that are. oBWA recommends that any customer that is discharging into the District's system (including swim clubs) should pay sewer service charges. Recommendation — eliminate current exemption for swimming pools /clubs that are connected to the sewer system. H 1Y 11I; ' Key Audit Finding #8 A comprehensive fee study is recommended Last comprehensive fee study was done in 1997 Many comments received during audit including: * Single- Family Residential Rates v. Multi - Family Residential Rates * Rates for Restaurants v. Delicatessens ® Capacity "Leasing" Option for Restaurants Rates for Mixed -Use Properties n Swim Club Rates Recommendation — Commission a comprehensive fee study. Conclusion We have greatly enjoyed working with District staff on this audit project and hope that our findings and recommendations are helpful in improving future service delivery and fee collection practices. Questions? i 1V