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HomeMy WebLinkAbout08.b. Conduct hearing re appeal by Richard Price of staff decision to assess fees and chargesCentral Contra Costa Sanitary District I BOARD OF DIRECTORS . b . POSITION PAPER Board Meeting Date: June 6, 2013 Subject. CONDUCT A HEARING TO CONSIDER MR. RICHARD PRICE'S APPEAL OF STAFF DECISION REGARDING CAPACITY FEES FOR 4221 BLACKHAWK MEADOW COURT, DANVILLE Submitted By. Initiating Dept. /Div.: T. Brightbill — Senior Engineer Engineering /Environmental Services REVIEWED AND RECOMMENDED FOR BOARD ACTION: D. Gemmell — Environmental Services Division Mgr, 'r, 0- K. Alm Counsel for the District C4 C. Swanson Provisional General Manager ISSUE: Mr. Richard Price, the owner of the residential property at 4221 Blackhawk Meadow Court in Danville (APN 220 - 230 -021) has requested that the Board consider providing relief from staff's final decision that a capacity fee and related fees are owed for the single family residence that was constructed in 2004. RECOMMENDATION: Affirm staff's decision that it is appropriate to assess a capacity fee and related fees for the property at 4221 Blackhawk Meadow Court, Danville. FINANCIAL IMPACTS: If affirmed, fees for capacity, application, annexation, and inspection and back sewer service charges would be collected. The total amount for all fees is $7,307. ALTERNATIVES /CONSIDERATIONS: The Board may: 1. Provide relief for some or all of the fees 2. Request that staff develop additional information and continue the hearing to a future date. BACKGROUND: District Code Section 6.12.030 D specifies that for capacity fees for new connections to the District's sewer system, "payment shall be due at the time of the District's issuance of a permit to connect to the public sewer." District practice has been to review plans received from applicants, provide comments and stamp the plans in red with a note that states: The proposed structure(s) may not be connected to the public main until: 1. The building rough plumbing is completed and approved by the city or county, 2. Application connection fees are paid to CCCSD, 3. An approved sewer contractor obtains a connection permit from CCCSD. The process is explained to the applicant at the permit counter when the plans are returned. Typically a sewer contractor obtains the permit and pays the application fee, associated inspection fees and capacity fee at the "roof and rough plumbing" stage. C: \Users \danderson \Desktop \PP Richard Price 6 -6 -13 FINAL.doc Page 1 of 3 POSITION PAPER Board Meeting Date: June 6, 2013 subject. CONDUCT A HEARING TO CONSIDER MR. RICHARD PRICE'S APPEAL OF STAFF DECISION REGARDING CAPACITY FEES FOR 4221 BLACKHAWK MEADOW COURT, DANVILLE On August 11, 2003, CCCSD received a permit application from Richard and Lisa Price for the construction of a new residence at 4221 Blackhawk Meadow Court in the community of Blackhawk. Our files and permit tracking software contained no additional entries after that date. Historically, CCCSD staff had not tracked projects at the application stage since those projects were often delayed and, in some cases, property owners would abandon plans for construction. In March 2012, CCCSD received an audit report on what has come to be known as the Outstanding Fee Report. As a result of this report, all applications that were still open in CCCSD's permit tracking system were reviewed. When aerial photos and other historical data were reviewed for 4221 Blackhawk Meadow Court, staff determined that a new single family residence had been constructed in 2004. Consistent with District Code and presentations to the Board on the proposed collection of outstanding fees from the audit report, staff notified Mr. Price that there were outstanding fees in the amount of $7,307. These fees include the capacity charge, a permit application and review fee, an annexation fee, inspection fees, and 2 years of back sewer service charges as shown on the attached invoice. The property did not pay the annual Sewer Service Charge from 2005 to 2012. The invoice does include two years of past Sewer Service Charges, which we believe is a very conservative view of what the District is able to collect under California State Law. Based on guidance from District Counsel, the key date for connection fees would be the date when CCCSD discovered that a fee was owed, not the actual date of connection. Based on this, the fees for 4221 Blackhawk Meadow Drive fall well within the District Code and the guidelines discussed for the collection of fees from the Outstanding Fee Report audit. On February 20, 2013, Mr. Price contacted CCCSD regarding the fees and invoice. In his letter and subsequent telephone conversation with District staff, Mr. Price has stated that he believes collection of the fees more than 10 years after the construction of his home is unfair and unreasonable. He has attempted to contact the contractor who built the home but is unable to locate him. He believes that after 10 years, it is unreasonable to expect that a property owner would have retained receipts and records in order to confirm whether fees had been paid. During a May 15, 2013 telephone conversation, staff notified Mr. Price that their decision that a capacity fee and related fees were owed was final. Under District Code Section 1.16.010, Mr. Price would like to appeal this decision. C:\ Users\ dandersonWppData \Local\Microsoft \Windows \Temporary Internet Files \Content.Outlook \DVCG8C5G \PP Richard Price 6- 6-13 Fina12 (2).doc Page 2 of 3 POSITION PAPER Board Meeting Date: June 6, 2013 Subject: CONDUCT A HEARING TO CONSIDER MR. RICHARD PRICE'S APPEAL OF STAFF DECISION REGARDING CAPACITY FEES FOR 4221 BLACKHAWK MEADOW COURT, DANVILLE COMMITTEE RECOMMENDATION: This item will be reviewed by the Budget and Finance Committee on June 3, 2013. RECOMMENDED BOARD ACTION: Conduct the hearing and deny the appeal. Attached Supporting Documents: 1. Invoice 2. Correspondence C:\ Users\ danderson \AppData \Local\Microsoft \Windows \Temporary Internet Files \Content.Outlook \DVCG8C5G \PP Richard Price 6- 6-13 Fina12 (2).doc Page 3 of 3 Central Contra Costa Sanitary District [Attachment 1 Invoice Customer Description Charge TOTAL —� Date 02/04/13 Mr. & Mrs. Richard Price $140.00 $140.00 4221 Blackhawk Meadow Ct. Annexation Fee Capacity fees and other fees not Danville, CA 94506 -5862 paid at time of connection CCCSD Acct. # Description Charge TOTAL —� Application Fee - Existing Parcel $140.00 $140.00 Annexation Fee $424.00 $424.00 Inspection Fee $324.00 $324.00 Sewer Service Charge, FY 2009 -10 $311.00 $311.00 Sewer Service Charge, FY 2010 -11 $311.00 $311.00 Capacity Fee, Residential, Zone 1 SFR $5,797.00 $5,797.00 For property: 4221 Blackhawk Meadow Ct. Danville App # 3 -1222 Job: 3936 APN 220 - 230 -021 -2 TOTAL DUE $7,307.00 Payment Details Payment shall be made within 45 days of the date of this Invoice, no later than March 21, 2013. PLEASE REMIT TO: CENTRAL CONTRA COSTA SANITARY DISTRICT ATTN: Earlene Millier 5019 Imhoff Place Martinez, CA 94553 (925) 957 -7613 Please return copy of invoice with remittance. Ventral Richard Price 4221 Blackhawk Meadow Court Danville, CA 94506 Dear Mr. Price: rAttachment 2 Sanitary District FAX (925) 228 -4624 www, centralsan. oro CURTIS W. SWANSON Provisional General Manager KENTON L. ALM Counsel for the District (510) 808 -2000 ELAINE R. BOEHME Secretary of the District CENTRAL CONTRA COSTA SANITARY DISTRICT CONNECTION FEES FOR 4221 BLACKHAWK MEADOW COURT, DANVILLE; APN 220 - 230 -021; CCCSD APPLICATION #03 -1222 We received your February 20, 2013 letter regarding connection fees for your property at 4221 Blackhawk Meadow Court. We are happy to schedule this item for presentation at a Board of Directors meeting; however it may be beneficial to review the matter with District staff prior to the meeting. Your letter mentions the interaction between CCCSD and the local building department. The normal procedure to obtain sewer and building permits for a new home would be: • CCCSD receives plans and an application for sewer service. The plans are reviewed and if they conform to CCCSD standards they are stamped, allowing a building permit to be issued. The stamp specifically states: The proposed structure(s) may not be connected to the public main until: 1. The building rough plumbing is completed and approved by the city or county. 2. Applicable connection fees are paid to CCCSD. 3. An approved sewer contractor obtains a connection permit from CCCSD. • Once the rough plumbing is completed, the contractor or property owner pays fees to CCCSD, a permit is issued, and sewer inspections are scheduled. • Prior to closing out the building permit, the local building department reviews the building permit to confirm that there are no outstanding issues. In this case it appears that the Contra Costa County Building Inspection Division failed to confirm that a sewer permit had been issued and that sewer connection fees had been paid prior to closing out the building permit. Senior Engineer Thomas Brightbill (925- 229 -7338 or tbdghtbill @centralsan.org) should be able to answer your questions about the process and fees. If after speaking with Mr. Brightbill you would still like to speak with the Board of Directors, he can arrange to have this item placed on the agenda for either the March 21 or April 4 meeting. Sincerely, j V012- Danea Gemmell �. Environmental Servic sio Manager DG/TB /mvp cc: Curt Swanson; Jim Nejedly Recycied Pape March 1, 2013 N :\ENVRSEC\Admin \Brightbill\2013 \Letters \Price Connection Fees Danville 3- 1- 13.doc