HomeMy WebLinkAbout06.a.1) Update on permit counter and connection fee collection matters.Central Contra Costa Sanitary District
March 30, 2012
TO: THE HONORABLE BOARD OF DIRECTORS
VIA: ANN E. FARRELL GENERAL MANAGER 4�JA
JARRED MIYAMOTO- MILLS, PROVISIONAL ENVIRONMENTAL
SERVICES DIVISION MANAGER
FROM: TOM GODSEY, SENIOR ENGINEER V1/
SUBJECT: OUTSTANDING DEVELOPMENT SERVICES FEES - UPDATE
At its March15, 2012 regular meeting, the Board received a report on the recently
concluded Audit of Permit Counter and Connection Fee Connection Practices by Bartle
Wells Associates. The Board directed staff to report progress on implementing the
audit's recommendations at each subsequent Board meeting. Over the past two weeks
the staff has done the following:
Held preliminary discussion with SunGard's Building Permits (BP) specialist
regarding the accumulating fee issue. This discussion confirmed that Permit
Counter staff is using the software appropriately and that there are no features
available in the application to avoid accumulation of fees from cancelled or
closed applications or those generated in response to requests for quotes or
miscellaneous inquiries. The specialist recommends that the Outstanding Fee
Report be run regularly and that fee entries not owed be manually evaluated and
purged from the database where appropriate.
• The November 2011 SunGard BP "Outstanding Fees Report" has been further
evaluated to determine the distribution of applications and fee amounts to
general data categories. The flow chart presented by General Manager, Ann
Farrell, at the March 15, 2012 Board meeting that shows this information has
been revised to replace the then - unknown entries with relevant data. The
revised chart is attached. Based on our initial sorting of the data, there are
approximately $4.6 million in fees that fall into the category of possibly owed.
Staff with outside assistance will be going through this list to determine how
many fees are actually owed.
A list of the possible scenarios for applications where fees may be collectible was
developed and submitted to District Counsel for legal review. Counsel will advise
the application evaluation team regarding an appropriate approach to procedures
for, and limitations on, the collection of fees determined to be owed. For
example, there may be some cases where the statute of limitations has lapsed.
In these cases, we will need Board and legal guidance in deciding whether to
NAENVRSEC \Position Papers \Godsey\2012 \Board Memos \4- 5- 12\Memo the BOD re Status 3- 30- 12.doc
Outstanding Development Services Fees - Update
March 30, 2012
Page 2 of 2
send a demand letter knowing that some customers will feel obligated to pay the
fees owed out of a sense of equity. The alternative would be to write off these
fees.
A team of three "agency temporary" accounting staff has been engaged to
evaluate each of the 1,715 applications currently in the SunGard BP database
where fees have been entered but not yet collected. The team will begin work on
April 5, 2012, and will continue its work until each application has been
categorized as either having fees due or not. They will focus first on the
applications associated with the approximately $4.6 million in fees that are most
likely to be owed, based on our initial sorting of the data.
• Meetings with other agencies building permit and public works staff to seek
improved collaboration are underway. Pleasant Hill has tentatively agreed to
allow CCCSD sign off on final inspections. A similar meeting is scheduled with
Contra Costa County staff next week.
The application evaluation team's work will be completed by June 30, 2012. Where
applications with verified fees owed are identified, staff will immediately commence
pursuing collection. Collection efforts may extend into 2013 depending on the volume
and complexity of applications where we determine that fees are collectible.
TG:sdh
Attachment
N: \ENVRSEC \Position Papers\Godsey\2012 \Board Memos \4- 5- 12\Memo the BOD re Status 3- 30- 12.doc
SunGard Report Output
Revised: 3 -30 -2012
1715 Permits
Showing Fees Entered
$20.5 M
166 Permits
Fees > $10, 000
Fees Possibly Owed?
$17.1 M
No Yes
$14.0 M $3.1 M
Document > < Resolve
630 Permits
$1, 000 > Fees > $10, 000
Fees Possibly Owed?
$3.1 M
No Yes
$1.6 M $1.5 M
Document IF Resolve
919 Permits
Fees < $1,000
$0.3 M
N:\ ENVRSEC \Admin \Farrell\2012 \SunGard Report Output Rvsd 3- 30- 12.doc