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HomeMy WebLinkAbout07.a.2) Update on permit counter connection fee recovery plan, etc.7a.z) Central Contra Costa Sanitary District April 18, 2013 TO: HONORABLE BOARD OF DIRECTORS �b)� VIA: CURT SWANSON, PROVISIONAL GENERAL MANAGER v DANEA GEMMELL, ENVIRONMENTAL SERVICES DIVISION MANAGER FROM: THOMAS BRIGHTBILL, SENIOR ENGINEER ,.p,3 SUBJECT: UPDATE ON CHARGES AND COLLECTION EFFORTS RESULTING FROM THE OUTSTANDING FEE REPORT On October 18, 2012, Staff made a presentation to the CCCSD Board of Directors on the status of the Outstanding Fee Report (OFR). Following the Board meeting, the fees were updated to current rates resulting in a total of $348,888 owed by 44 property owners. Collection letters have been sent to all property owners where the discovery that a fee was owed was less than 4 years. As of April 1, 2013, we have received payments totaling $156,473 from 25 property owners. Several property owners have made partial payments and are committed to paying their balance in full prior to the end of the fiscal year. The remaining property owners are receiving follow -up letters with updated invoices that include a late fee. If payment is not received or the property owner does not contact Staff to resolve the matter, those delinquent fees will be brought to the Board in June so a public hearing can be scheduled and the delinquent charges can be placed on the property tax bills. Several changes have been implemented at the permit counter. These include: Starting January 1, 2013, the permit counter staff is collecting fees at the time an application is received for projects where there is an existing connection to District sewers. This includes permits for second living units, accessory structures, and demo /rebuild of existing structures. It should be noted that 32 of the 44 OFR parcels were second living units (72 %). The permit counter supervisor, the development inspection supervisor, and the supervising senior engineer are meeting with building department staff at each of the local building departments with the District. During these meetings, District Staff are reviewing the proper sequence of events and sign -offs needed in order for CCCSD to collect connection fees from new projects at the "roof and rough" stage of construction. We anticipate holding short, annual meetings with each agency to remind them of the process. Update On Charges And Collection Efforts Resulting From The Outstanding Fee Report Page 2 April 18, 2013 • All plans are now being stamped "Hold final [building department approval] for CCCSD approval" to remind local agencies not to close building permits until it has been confirmed that CCCSD has received sewer fees. • Permit counter staff has started "permit aging." After 6 months of no activity on a permit and after 18 months of no activity on an application, property owners are notified that their permit or application will be closed. • Fee quotes are no longer being entered into the SunGard tracking system unless Staff is fairly confident that the project will occur. While talking with property owners who received collections letters, a common theme heard from property owners was the belief that sewer fees had already been paid. These property owners made statements such as "I brought my plans to the permit counter" or " CCCSD stamped my plans." Even with stamping the plans with a note that the applicant needed to return to pay fees at the "roof and rough" stage, many applicants failed to do so. Of the eight neighboring sewer agencies CCCSD typically uses for fee comparison, only one agency, West County Wastewater District, also requires sewer fees to be paid at the "roof and rough" stage. All of the remaining agencies collect fees at the time of application. TB:sdh