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Home My WebLink About07.a. Consider requests by two property owners for installment payment of delinquent chargesCentral Contra Costa Sanitary District ' BOARD OF DIRECTORS POSITION PAPER Board Meeting Date: November 21, 2013 Subject. CONSIDER THE PROPERTY OWNERS' REQUESTS FOR INSTALLMENT PAYMENT PLANS FOR DELINQUENT CHARGES FOR 700 VIA HERMOSA IN DANVILLE AND FOR 545 EL PINTADO IN DANVILLE Submitted By: Earlene Millier, Engineering Assistant III Initiating DeptJDiv.: Engineering /Environmental Services REVIEWED AND RECOMMENDED FOR BOARD ACTION: T. Brightbill — Senior Engineer D. Gemmell — Environmental Services Division Manager J�:u K. Alm Counsel for the District R. Bailey General Manager ISSUE: Two requests were received from property owners whose delinquent charges were already placed on the property tax bills. A resolution of the Board of Directors passed by four affirmative votes is needed to authorize staff to record a Memorandum of Agreement with a property owner for collection of delinquent charges on the Contra Costa County tax roll in installments. RECOMMENDATION: The Budget and Finance Committee recommends denial of both requests. Staff concurs with this recommendation. FINANCIAL IMPACTS: None from this action. The delinquent charges for both properties have already been placed on the 2013 -14 property tax roll for collection. If the Board adopts a resolution granting installment payment plans, the charges will be collected, with interest, over several years rather than entirely in the 2013 -14 tax year. Any costs associated with filing a corrected levy with the County will be included in the charges. Some additional staff time would be expended on this matter if the payment plans are approved. 7aG ALTERNATIVES /CONSIDERATIONS: The Board could grant installment payment plans, and adopt the resolution authorizing staff to prepare and execute a Memorandum of Agreement with each property owner that would provide for payment of the delinquent charges plus interest over a period of five years or a different period of time. The property owners have requested payments equivalent to five annual installments. The annual amount would be placed on the property tax roll for collection. The Board could decline to grant the installment payment plans requested by the property owners, and leave the earlier resolution in place, which would result in payment of the entire amount in the 2013 -14 fiscal year; or could direct staff to remove N:WDMINSUP\ADMIN \DIST- SEC \Position Papers \PP Delinquency 700 Via Hermosa and 545 El Pintado instllmt pymt 11 -21 -13 Final.doc Page 1 of 4 POSITION PAPER Board Meeting Date: November 21, 2013 Subject., CONSIDER THE PROPERTY OWNERS' REQUESTS FOR INSTALLMENT PAYMENT PLANS FOR DELINQUENT CHARGES FOR 700 VIA HERMOSA IN DANVILLE AND FOR 545 EL PINTADO IN DANVILLE the liens from the properties and make alternative arrangements with the property owners. Since staff exhausted all feasible efforts for collection before the July 25, 2013 public hearing, removing the liens that were established under the earlier resolution and not replacing them with other liens would likely result in the delinquent amounts being uncollectible. BACKGROUND: 700 Via Hermosa: A second living unit at 700 Via Hermosa in Danville was connected to the sanitary sewer without payment of capacity fees, permit and inspection fees, and sewer service charges. An application was begun at the permit counter in 2003, but was never completed, and the Town of Danville performed the final building inspection for the detached second dwelling on April 3, 2007. Staff became aware of the unpermitted second living unit in 2012 and pursued collection of the fees. Staff made repeated efforts to contact the property owners, Rick and Leslie Broussard, regarding the unpaid fees. Letters were mailed on December 6, 2012, April 25, 2013, and July 11, 2013. These efforts did not result in collection of the fees and charges. The property owner did not respond to any of the correspondence. 545 El Pintado: A second living unit at 545 El Pintado in Danville was connected to the sanitary sewer without payment of capacity fees, permit and inspection fees, and sewer service charges. An application was begun at the permit counter in 2005, but was never completed, and the Town of Danville performed the final building inspection for the new second dwelling on February 29, 2008. Staff became aware of the unpermitted second living unit in 2010 and pursued collection of the fees in 2012. Staff made repeated efforts to contact the property owner, Mr. Cesar Rashoff. A letter was mailed on December 10, 2012. On January 17, 2013, Mr. Rashoff called the District to say that he thought the fees had been paid and that he would check his records and call back before the end of January. He did not contact the District again after that. Letters were subsequently mailed to him on April 25 and July 11, 2013. A Notice of Public Hearing was published in the newspaper on July 11 and July 18 and the Public Hearing was held on July 25, 2013. The property owners did not respond to the Notice and did not attend the Public Hearing. After the Public Hearing on July 25, the Board adopted Resolution number 2013 -018 to place the entire amount of the delinquent charges on the 2013 -14 property tax roll. The delinquent charges total N:WDMINSUPWDMIN \DIST- SEC \Position Papers \PP Delinquency 700 Via Hermosa and 545 El Pintado instllmt pymt 11 -21 -13 Final.doc Page 2 of 4 POSITION PAPER Board Meeting Date: November 21, 2013 Subject., CONSIDER THE PROPERTY OWNERS' REQUESTS FOR INSTALLMENT PAYMENT PLANS FOR DELINQUENT CHARGES FOR 700 VIA HERMOSA IN DANVILLE AND FOR 545 EL PINTADO IN DANVILLE $9,000.18 for each property, including capacity fees, sewer service charges, application and inspection fees, ten percent delinquent charges and penalties. The owner of 700 Via Hermosa, Ms. Leslie Broussard, contacted staff by telephone on October 23 and subsequently sent an email (see Attachment 1), acknowledged receipt of the letters and requested an installment payment plan due to financial hardship. The property owner has proposed payments that are approximately equivalent to paying off the delinquent charges plus interest over five years. The property owners stated that they cannot attend the Board meeting because they will be at work. The owner of 545 El Pintado, Mr. Cesar Rashoff, visited the District's permit counter on October 30 and sent an email the same day (see Attachment 2), acknowledged receipt of the letters and requested an installment payment plan due to financial hardship. He has requested paying off the amount over five years. Mr. Rashoff's representative, Mr. Carter Stack, attended the Board meeting on November 7 to state this request. Because the Board has already taken action to place the charges on the tax roll, staff is not making a recommendation regarding the proposed installment payment plans. If the Board decides to grant installment payment plans, a resolution of the Board is needed to authorize staff to execute a Memorandum of Agreement with the owners of each property and to record the agreements against the properties, thereby establishing liens for the total amount of the delinquent charges. The annual amount to be collected on the property tax roll would be included with other charges sent to the County each year for the duration of the agreements, until the entire amounts are collected, after which staff would release the Memoranda of Agreement, removing the liens from the properties. COMMITTEE RECOMMENDATION: This matter was discussed with the Budget and Finance Committee at their November 4, 2013 meeting. The Committee recommends denial of the property owners' requests for the following reasons: 1. Sufficient opportunity to request an installment payment plan has already been given to the property owners, up to and including a Public Hearing on July 25, 2013; 2. Committee members are reluctant to expend additional staff time on a matter on which the Board has already taken action by placing the full amount of the charges on the FY 2013 -14 property tax bills. N:\ADMINSUP\ADMIN \DIST- SEC \Position Papers \PP Delinquency 700 Via Hermosa and 545 El Pintado instllmt pymt 11 -21 -13 Final.doc Page 3 of 4 POSITION PAPER Board Meeting Date: November 21, 2013 subject: CONSIDER THE PROPERTY OWNERS' REQUESTS FOR INSTALLMENT PAYMENT PLANS FOR DELINQUENT CHARGES FOR 700 VIA HERMOSA IN DANVILLE AND FOR 545 EL PINTADO IN DANVILLE RECOMMENDED BOARD ACTION: The Budget and Finance Committee recommends denial of both requests. Staff concurs with this recommendation. Attached Supportinq Documents: 1. Email correspondence from owner of 700 Via Hermosa, Danville 2. Email correspondence from owner of 545 El Pintado, Danville 3. Proposed Resolution N:VWDMINSUPWDMIN \DIST- SEC \Position Papers \PP Delinquency 700 Via Hermosa and 545 El Pintado instllmt pymt 11 -21 -13 Final.doc Page 4 of 4 ATTACHMENT 1 Earlene Millier From: Leslie <LB0424 @aol.com> Sent: Thursday, October 24, 2013 10:41 AM To: Earlene Millier Cc: LB0424 @aol.com; theborgl @aol.com Subject: Parcel #216 -130 -010 -4 00 Dear Earlene and Board of Directors, In 2003 we took out a building permit with the Town of Danville. We'd never done anything like this before. We trusted the Town of Danville to guide us throughout the process. In 2006 it was finalized. We asked if there was anything else we needed to do and they said no, we were done. We trusted what they told us was true and went on with our lives. Six years later we got a letter from the Town of Danville saying that upon an audit they realized they had made a mistake and sent us a bill including 6 years of late fees, etc. We would have and could have paid that bill back then if we had received it back then. It's not fair for them to charge us for their mistakel We decided that we needed a lawyer and we're trying to save money to pay for one when we received our property tax bill We feel that we should only have to pay the original amount due since the error was on their part! We no longer have the money or credit to pay this amount of money. We are struggling financially and cannot afford to take time off of work to attend one of your meetings. We've never been involved in anything like this before. We hope that you will understand our situation and will allow us to pay part of this bill now and the rest in reasonable monthly payments that we can afford. Thank you so much for any help you can provide us. Sincerely, Rick and Leslie Broussard ATTACHMENT 2 Earlene Millier From: Cesar Rashoff <sunviewl @aol.com> Sent: Thursday, November 07, 2013 10:56 AM To: Earlene Millier Subject: Fwd: 545 El Pintado Sent from my Wad Begin forwarded message: From: Cesar Rashoff <sunviewl(a�aol.com> Date: October 30, 2013, 12:31:41 PM PDT To: "emillerAcentralsan.org" <emillerna,centralsan.org> Subject: 545 El Pintado Hi Earlene, It was nice meeting you this morning. I would like to ask the board if they would consider an installment plan for 5 years regarding my property tax bill that the sanitary district placed on it. To give you a little back ground, I had an in law unit built on my property over 7 years ago. I thought everything was paid and then out of the blue I received a tax bill for over $9000. I do not have this money right now so that's why I need an installment plan. Than you for your time, below is all the information you should need. Cesar Rashoff 545 El Pintado Rd. Danville, Ca. 94596 Parcel number 200 -010 -020 -2 00 Cell number (925)250 -1972 Sent from my iPad Attachment 3 RESOLUTION NO. 2013 — 039 A RESOLUTION DIRECTING THAT DELINQUENT CHARGES FOR 700 VIA HERMOSA IN DANVILLE AND 545 EL PINTADO IN DANVILLE BE COLLECTED ON THE CONTRA COSTA COUNTY PROPERTY TAX ROLL IN FIVE ANNUAL INSTALLMENTS BEGINNING IN FISCAL YEAR 2013 -14 WHEREAS, a second living unit at 700 Via Hermosa in Danville has been connected to the sanitary sewer without payment of appropriate capacity fees and other fees due; and WHEREAS, a second living unit at 545 El Pintado in Danville has been connected to the sanitary sewer without payment of appropriate capacity fees and other fees due; and WHEREAS, District staff has attempted to collect said fees and charges by mailing letters and invoices to the property owners; and WHEREAS, a properly noticed public hearing was held on July 25, 2013; and WHEREAS, the District Code provides that the District may elect to collect delinquent charges on the tax roll as provided by Section 5473a and following, of the California Health and Safety Code; and WHEREAS, the District considers it to be economical and efficient to collect delinquent charges on the Contra Costa County tax roll. NOW, THEREFORE, be it resolved by the Board of Directors of the District: 1) THAT delinquent charges for 700 Via Hermosa in Danville and for 545 El Pintado in Danville are to be collected on the Contra Costa County Property Tax Roll in five annual installments beginning in fiscal year 2013 -14. 2) THAT a Memorandum of Agreement for each of the above -named properties be recorded with the Contra Costa Recorder specifying the terms of the installment payment plan and thereby establishing a lien on each property. Passed and adopted this 21St day of November, 2013 by the Central Contra Costa Sanitary District Board of Directors by the following vote: AYES: Members: NOES: Members: ABSENT: Members: James A. Nejedly President of the Board of Directors Central Contra Costa Sanitary District County of Contra Costa, State of California Central Contra Costa Sanitary District Resolution No. 2013 - Page 2 of 2 COUNTERSIGNED: Elaine R. Boehme, CIVIC Secretary of the District Central Contra Costa Sanitary District County of Contra Costa, State of California Approved as to form: Kenton L. Alm, Esq. Counsel for the District