HomeMy WebLinkAbout07.b. (Handout) Pizza My Way Capacity Fee76.
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Item No. 7.b.
Pizza My Way Capacity Fee
Earlene Millier
Engineering Assistant III
September 6, 2012
Central Contra Costa Sanitary District
Proposed Installment Payment Plan
• Business owner proposes monthly payments of
around $200 on a capacity fee of $15,000.
• At 6% interest, it would take 8 years to pay off.
• $290 per month would take 5 years.
• Extra administrative work of dealing with monthly
payments and possible default.
• Unsecured loan
Capacity Use Agreement with a Modified Period
• Annual charge is based on water consumption.
• Water conservation helps keep charges low.
• Difficult to estimate water consumption in advance.
• Business needs to install a private water meter.
• Property owner is reluctant to sign a 15 -year agreement
but might sign one for a shorter period.
• With a 5 -year agreement, the annual charge would be
approximately $3,000 per year based on standard water
use factor (about $256 per month).
• Secured — charge goes on the property tax roll.
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Staff Recommendation
• Authorize the General Manager to execute a capacity
use agreement for a term less than fifteen years for
Pizza My Way.
• Staff will work with business owner and property owner
to find terms acceptable to all.
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Questions...?