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Home My WebLink About03. Draft PP to place Caffe Classico deliquency on FY 2015-16 tax rollCentral Contra Costa Sanitary District 3. BOARD OF DIRECTORS @Mlyy POSITION PAPER Board Meeting Date: August 6, 2015 Subject. CONDUCT A PUBLIC HEARING TO RECEIVE COMMENTS ON AND CONSIDER ADOPTION OF A RESOLUTION DIRECTING THAT FISCAL YEAR 2015 -16 DELINQUENT CHARGES BE COLLECTED ON THE CONTRA COSTA COUNTY PROPERTY TAX ROLL Submitted By. Initiating Dept. /Div.: Danea Gemmell, Planning & Engineering & Technical Services/ Development Services Division Manager Planning & Development Services REVIEWED AND RECOMMENDED FOR BOARD ACTION: JM. Petit — Director of Engineering & Technical Services, Kent Alm Roger S. Bailey Counsel for the District General Manager ISSUE: A resolution of the Board of Directors passed by four affirmative votes is needed to place charges on the Contra Costa County tax roll. RECOMMENDATION: Adopt a resolution directing that Fiscal Year (FY) 2015 -16 delinquent charges be collected on the Contra Costa County property tax roll for the property located at 2500 Annalisa Drive in Concord, APN 159 -362 -001. FINANCIAL IMPACTS: This action will provide for the collection of $102,974 in capacity fees plus penalties and delinquent charges incurred when a new business with a significantly higher sewer burden began operations on the property and failed to obtain permits and pay fees. Placing the delinquent charges on the property tax roll for collection will ensure that the District collects the charges. ALTERNATIVES /CONSIDERATIONS: The Board could decline to place the delinquent charges on the property tax roll or could direct staff to make alternative arrangements. Since staff has exhausted all feasible efforts for collection, declining establishment of a lien would likely result in the delinquent amounts being uncollectible. BACKGROUND: The building at 2500 Annalisa Drive was built and connected to sanitary sewer in 1983. The District issued a sewer permit and collected $1515 in capacity fees. Notes on the permit reference 3,000 square feet of office space and 3,000 square feet of light industrial space. In 2003, District Source Control Inspectors became aware that an ice cream manufacturer, Caffe Classico, was operating on the premises and was not in compliance with District discharge regulations. In addition, operations within the building had expanded from 6,000 square feet to over 12,000 square feet and no sewer permits had been sought or issued for the expansion. Source Control took enforcement action and had over 30 interactions with Caffe Classico between 2003 to 2013, and C: \Users \CGranzella\AppData \Local \Microsoft \Windows \Temporary Internet Files \Content.Outlook \YTOD71 EQ \Hold PH regarding delinquency - Caffe Classico - 8 -6 -15 DRAFT.docx Page 1 of 2 POSITION PAPER Board Meeting Date: August 6, 2015 subject: CONDUCT A PUBLIC HEARING TO RECEIVE COMMENTS ON AND CONSIDER ADOPTION OF A RESOLUTION DIRECTING THAT FISCAL YEAR 2015 -16 DELINQUENT CHARGES BE COLLECTED ON THE CONTRA COSTA COUNTY PROPERTY TAX ROLL eventually reached a settlement agreement for the discharge violations in January 2013. In December 2012, the District notified the property owner that capacity fees were due based on the property's change of use and increased burden. The District and property owner met to review operations on the property, the basis for capacity fees, and various options for payment. In March 2013, the District notified the property owner that, based on the down payment amount under the District's Capacity Use Charge Program, a capacity fee of $102,974 was due. The fee amount is based on building square footage and was requested prior to the tenant adopting a "zero process discharge" method of operation. On May 3, 2013, the District notified the property owner that the $102,974 capacity fee was delinquent and could be placed on the parcel's property tax bill along with interest and penalties. Since February 2013, District staff has met with the property owner multiple times in an attempt to resolve questions regarding the capacity fee in light of ongoing legal issues involving the property owner and the new business operator. As the District and the property owner have been unable to reach agreement on payment of capacity fees, staff is recommending that delinquent capacity fees in the amount of $102,974 be placed on the property tax bill for the parcel. COMMITTEE RECOMMENDATION: The Finance Committee will review this matter at their July 27, 2015 meeting. RECOMMENDED BOARD ACTION: Adopt a resolution directing that FY 2015 -16 delinquent charges be collected on the Contra Costa County property tax roll for the property located at 2500 Annalisa Drive in Concord, APN 159 - 362 -001. Attached Supportinq Documents: 1. Proposed Resolution C: \Users \CGranzella\AppData \Local \Microsoft \Windows \Temporary Internet Files \Content.0utlook \YT0D71 EQ \Hold PH regarding delinquency - Caffe Classico - 8 -6 -15 DRAFT.docx Page 2 of 2 RESOLUTION NO. 2015 — A RESOLUTION DIRECTING THAT FISCAL YEAR 2015 -16 DELINQUENT CHARGES FOR THE PROPERTY LOCATED AT 2500 ANNALISA DRIVE IN CONCORD BE COLLECTED ON THE CONTRA COSTA COUNTY PROPERTY TAX ROLL WHEREAS, there was a change in use at the commercial property located at 2500 Annalisa Drive in Concord without payment of appropriate capacity fees and other fees due; and WHEREAS, Central Contra Costa Sanitary District (District) staff has attempted to collect said fees and charges by mailing letters and invoices to the property owner and the business owner; and WHEREAS, the fees and charges became delinquent in 2013; and WHEREAS, the District assessed delinquency charges, and since that time has assessed penalties pursuant to provisions of District Code Section 1.08.080; 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 Fiscal Year 2015 -16 delinquent charges for the property located at 2500 Annalisa Drive in Concord, are to be collected on the Contra Costa County Property Tax Roll. Passed and adopted this 6th day of August, 2015 by the Central Contra Costa Sanitary District Board of Directors by the following vote: AYES: Members: NOES: Members: ABSENT: Members: Michael R. McGill, P.E. President of the Board of Directors Central Contra Costa Sanitary District County of Contra Costa, State of California Resolution No. 2015 - Central Contra Costa Sanitary District 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