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Home My WebLink About08.a. Authorize agreement for installment payment of capacity fees for Oyama SushiCentral Contra Costa Sanitary District 3.a. BOARD OF DIRECTORS POSITION PAPER Board Meeting Date: JUNE 6, 2013 Subject: AUTHORIZE THE GENERAL MANAGER TO EXECUTE AN AGREEMENT FOR INSTALLMENT PAYMENT OF CAPACITY FEES FOR OYAMA SUSHI (RESTAURANT) AT 1519 N. MAIN STREET, WALNUT CREEK Submitted By. Earlene Millier, Engineering Assistant III Initiating Dept. /Div.: Engineering /Environmental Services REVIEWED AND RECOMMENDED FOR BOARD ACTION: pzvp T. Brightbill, Senior Engineer D. Gemmell, Environmental Services Division Mgr K. Alm C. Swanson Counsel for the District Provisional General Manager ISSUE: District Code Section 6.12.030 D. states that payment of capacity fees shall be made at the time the District reviews building plans for a change of use. District Code Section 1.24. 010 states that the Board may modify or suspend or relieve the application of an ordinance or regulation if it finds that the ordinance or regulation is unjust or inequitable because of special circumstances. District Code Section 1.24.040 states that District Code does not prevent a special agreement when the Board finds that it is necessary and of benefit to the District. Board approval is required to authorize the General Manager to execute an agreement for installment payment of capacity fees that are owed by a new business, Oyama Sushi, at 1519 N. Main Street in Walnut Creek. RECOMMENDATION: Authorize the General Manager to execute an agreement for installment payment of capacity fees owed by Oyama Sushi at 1519 N. Main Street in Walnut Creek. FINANCIAL IMPACTS: If the District enters into an unsecured installment payment agreement with the business owner, the total capacity fees that could eventually be collected over the two years of the agreement are approximately $14,000.00. It is possible the new restaurant could close or leave the service area before that amount is paid. If that happens, staff would calculate the residential unit equivalent (RUE) of the capacity fees collected up to that point and would credit those RUES to the property. A subsequent business in the same location would then be required to pay any additional capacity fees due, either upon opening or under an arrangement such as a Capacity Use Agreement. It is also possible that the business owners could stop making payments but stay in business. If that happens, the District's options would be: 1) negotiate a new payment plan with the business owners; 2) place the unpaid amount on the property tax rolls for collection; or 3) terminate sewer service to the business. C:\ Users \danderson\AppData \Local \Microsoft \Windows \Temporary Internet Files \Content.Outlook \DVCG8C5G \PP Capacity Fees Agreement (Oyama Sushi) 6 -6 -13 Final (3).doc Page 1 of 2 POSITION PAPER Board Meeting Date: JUNE 6, 2013 subject: AUTHORIZE THE GENERAL MANAGER TO EXECUTE AN AGREEMENT FOR INSTALLMENT PAYMENT OF CAPACITY FEES FOR OYAMA SUSHI (RESTAURANT) AT 1519 N. MAIN STREET, WALNUT CREEK ALTERNATIVES /CONSIDERATIONS: The Board may decline to enter into an unsecured installment payment agreement with this business. In this case, it is possible that the business would not open, and no capacity fees would be collected unless and until a subsequent business decided to open in this location. BACKGROUND: The business owner, Mr. Yan Zhang, intends to open a new restaurant, Oyama Sushi, at 1519 N. Main Street in Walnut Creek. He has signed a lease on the space, which formerly housed a number of retail businesses and has paid capacity fees at the "Deli" rate factor. The new business fits the District's definition of a restaurant. The net capacity fees due are $14,115.70. The business owner has stated that he is now required to do additional construction work at extra cost that he had not included in the project budget and is unable to pay the capacity fees at this time. Staff suggested that a Capacity Use Agreement be used to allow payment of the capacity fees over a 15 -year period, however, the property owner has declined to sign an agreement. The tenant business owner has proposed a substantial down payment and a 24 -month unsecured installment payment plan for the capacity fees. Other fees due, including sewer service charge and inspection fees, would be paid at the time of permit issuance. COMMITTEE RECOMMENDATION: This matter will be considered by the Budget and Finance Committee at its June 3, 2013 meeting. RECOMMENDED BOARD ACTION: Authorize the General Manager to execute an agreement for installment payment of capacity fees owed by Oyama Sushi at 1519 N. Main Street in Walnut Creek for a period not to exceed two years. Attached Supportinq Documents: 1. Letter from Mr. Yan Zhang, owner of Oyama Sushi C:\ Users \danderson\AppData \Local \Microsoft \Windows \Temporary Internet Files \Content.Outlook \DVCG8C5G \PP Capacity Fees Agreement (Oyama Sushi) 6 -6 -13 Final (3).doc Page 2 of 2 FROM :ALL APPLIEDCONSTRUCTION FAX NO. :5106559988 May. 31 2013 07:36AM P2 May 29, 213 To Central Contra Costa Sanitary District, I am currently building my second Oyama Japanese restaurant in the Tri Valley. This one is located at 1519 North Main Street in Walnut Creek. The construction scope of work has increased from the original design. There will now be facade work for the entire building as well. For this reason, I would like to request a two year payment plan for my sewer connection fee. My general contractor also built Senro Sushi in San Ramon, in which this payment plan was granted. I believe recently Senro Sushi has repaid the connection fee in full, if granted a two payment plan, I intend to do the same. Thank you for your consideration. Sincerely, -% ko- VV5 �a V\ sc0 -A9 —221L