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HomeMy WebLinkAbout05.a. Staff PowerPoint re Public Hearing on Unpaid Capacity Fees (Caffe Classico)Item No. 5.a. Public Hearing Unpaid Capacity Fees 2500 Annalisa Drive, Concord Danea Gemmell Planning & Development Services Division Manager August 6, 2015 Central Contra Costa Sanitary District 2500 Annalisa Drive, Concord SUMMARY • Former Light Industrial /Office use, now houses Caffe Classico, a manufacturer of ice cream, gelato, sorbet. • No permit issued for change in use; no capacity fees paid • Source Control took enforcement action against Caffe Classico for discharge violations and reached settlement agreements in 2010 and 2013. • The settlement agreement required Caffe Classico to go Zero Discharge. • Staff has been working to collect unpaid capacity fees since 2012. F1ff'45g-'1(D- stao <y4ndouf� 1 BCD_ x. r ':Y Y' At ���CD How Capacity Fees Were Calculated for Caffe Classico • CCCSD has no standard user category or RUE factor for a business of this type. • A Special Study would typically be conducted based on flow and strength data. • Caffe Classico's flow and strength data showed wide variations and was deemed not useful for a Special Study calculation. M Typical Capacity Fee Calculation 1000 square feet X Business Factor = RUES RUES X Capacity Fee = Capacity Charge Example: 12,946 square feet of Restaurant: 12.946X4.010 =51.91 RUES 51.91 RUES X $6,005 /RUE = $311,740 3 How Down Payment for Capacity Use Agreement was Calculated Gravity: 1.166 RUE/1,000 SF x 12 946 SF 15.1 RUE x 5,797 $ /RUE $87,506 Pumped: $15,468 CAPACITY FEE DOWN PAYMENT $102,974 How Capacity Fees Were Calculated for Caffe Classico • Caffe Classico considered "Permitted Industry ". • A Capacity Use Agreement to spread the payment of capacity fees over 15 years. • Annual charge is based on water consumption and wastewater strength data. • Caffe Classico subsequently went Zero Discharge in February 2013. Annual billings were suspended. M Efforts to Collect Fees • Starting in 2012, staff has attempted to collect capacity fees. • Multiple letters, meetings, phone calls, etc. • Declared delinquent in May 2013. • Action suspended for two years by request of business owner and property owner while they carried out litigation. • Staff recommends placing amount on tax roll for collection. Current Status • Public Hearing on 8/6/15 • Place on 2015 -16 tax roll (deadline is August 10) • File Certificate of Unpaid Charges to secure our charges until tax bills go out • Closed Session on 8/26/15 to consider additional action 5 Questions? 0