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HomeMy WebLinkAbout03.e. Connection Fee Deferral ProgramCentral Contra Costa Sanitary District 3.e BOARD OF DIRECTORS POSITION PAPER Board Meeting Date: May 21, 2015 Subject: REVIEW STATUS OF CONNECTION FEE DEFERRAL PROGRAM SCHEDULED TO TERMINATE ON JUNE 30, 2015 Submitted By: Initiating Dept. /Div.: Thomas Brightbill, Senior Engineer Engineering & Technical Services / Planning & Development Services REVIEWED AND RECOMMENDED FOR BOARD ACTION: D. Gemmell — Planning & Development Services Div. Mgr. JM. Petit — Director of Engineering & Technical Services Kent Alm Counsel for the Roger S. Bail y General Manager ISSUE: The Connection Fee Deferral Program is scheduled to terminate on June 30, 2015. RECOMMENDATION: Allow the Connection Fee Deferral Program to terminate as scheduled on June 30, 2015. FINANCIAL IMPACTS: None related to this action. ALTERNATIVES /CONSIDERATIONS: Should the Board of Directors wish to extend the program, changes to the District Code would be required. BACKGROUND: The Connection Fee Deferral Program was established in June 2009 for a period of one year to address concerns from home builders during a recessionary period with greatly diminished home sales. The program has been extended several times but has not been used since September 2011. Between 2009 and 2011, 18 different Connection Fee Deferral agreements were recorded. When the program was established, the Board of Directors made a finding that the recession and corresponding lack of home sales constituted special circumstances that warranted temporarily suspending certain requirements in District Code related to the timing of payment for Capacity Fees. District Council has advised that since the special circumstances no longer exist, any continuation of Capacity Fee deferral would require an amendment to the District Code. COMMITTEE RECOMMENDATION: The status of the Connection Fee Deferral Program was reviewed at the May 13, 2015, Finance Committee meeting and the Committee recommended that the program be allowed to terminate as scheduled. RECOMMENDED BOARD ACTION: Allow the Connection Fee Deferral Program to terminate as scheduled on June 30, 2015. C:\ Users \danderson\AppData \Local \Microsoft \Windows \Temporary Internet Files \Content.Outlook \DVCG8C5G \PP Connection Fee Deferral Program 5 -21 -15 Final.docx