HomeMy WebLinkAbout07.c. Authorize installment payment of capacity fees - Flex Personal Training and Pilates in DanvilleCentral Contra Costa Sanitary District -�
' BOARD OF DIRECTORS
POSITION PAPER
Board Meeting Date: November 15, 2012
Subject: AUTHORIZE THE GENERAL MANAGER TO EXECUTE A PROMISSORY
NOTE FOR INSTALLMENT PAYMENT OF CAPACITY FEES FOR FLEX
PERSONAL TRAINING AND PILATES AT 588 SAN RAMON VALLEY BOULEVARD
IN DANVILLE
Submitted by: Initiating Dept/Div.:
Earlene Millier, Engineering Assistant III Engineering /Environmental Services
REVIEWED AND RECOMMENDED FOR BOARD ACTION:
0
E. Millier
0
T. Brightbill
v
J. Mi moto -Mills
Ok- D�-
K. Alm Ann E. rarrell
General Manager
ISSUE: District Code states that capacity fees shall be due and made at the time the
District reviews building plans related to a change in use where a property is already
connected to the public sewer. Board approval is required for the General Manager to
execute a promissory note for installment payment of capacity fees.
RECOMMENDATION: Authorize the General Manager to execute a promissory note
and memorandum of agreement for installment payment of capacity fees for Flex
Personal Training and Pilates at 588 San Ramon Valley Boulevard in Danville.
FINANCIAL IMPACTS: None. In lieu of collecting capacity fees in a single payment,
the District will collect monthly installment payments totalling the amount of the capacity
fees plus interest. The annual charge will be placed on the Contra Costa County
property tax roll.
ALTERNATIVES /CONSIDERATIONS: The Board may decline to authorize an
installment payment agreement. If the Board declines to authorize an installment
payment agreement, it is possible that the business would either pay capacity fees in a
single payment or would decide not to open at this location.
BACKGROUND: Mr. Gary Bush intends to open a personal training and pilates center
at 588 San Ramon Valley Boulevard in Danville. Mr. Bush has signed a five year lease
and undertaken an interior remodel of the space, which formerly housed a bank.
Additional capacity fees totaling approximately $18,000 are due for the change in use
from Financial Institution /Bank to Health Club, the capacity fee rate typically assigned to
small fitness centers with showers. The business owner states that he is unable to pay
the capacity fees in a single payment at this time and has requested an installment
payment plan. A copy of the email message requesting the installment payment
agreement follows this position paper.
Page 1 of 2
POSITION PAPER
Board Meeting Date: November 15, 2012
Subject. AUTHORIZE THE GENERAL MANAGER TO EXECUTE A PROMISSORY
NOTE FOR INSTALLMENT PAYMENT OF CAPACITY FEES AT FLEX PERSONAL
TRAINING AND PILATES AT 588 SAN RAMON VALLEY BOULEVARD IN
DANVI LLE
Staff does not have the authority under District Code to execute an installment payment
agreement. If the Board authorizes the General Manager to execute an installment
payment agreement, staff will work with the business owner to arrive at terms that are
acceptable to both the business owner and the District. The terms will include monthly
payments on the amount of the capacity fees owed plus interest. The agreement would
not be secured and the charges would not be placed on the property tax roll for
collection.
This matter was reviewed by the Budget and Finance Committee at its meeting on
November 13, 2012.
RECOMMENDED BOARD ACTION: Authorize the General Manager to execute a
promissory note for installment payment of capacity fees for Flex Personal Training and
Pilates at 588 San Ramon Valley Boulevard in Danville.
N:\ADMINSUP\ADMIN \DIST- SEC \Position Papers\2012 \PP - Install Pymts -Flex Pars Training 11 -15 -12 (Millier) Final.doc
Earlene Millier
From: gary bush <gbush3636 @sbcglobal.net>
Sent: Thursday, November 08, 2012 11:43 AM
To: Earlene Millier
Subject: Flex Personal Training permits
Hi Earlene
As per our conversation I am requesting to be added the Board agenda to request a payment plan to pay for the
permits.
Proposed as follows:
$18314.00 to be paid over a five year fully amortized loan at 6% interest.
Payments to be $327.15 monthly.
Gary Bush
FLEX
Personal Training & Pilates