HomeMy WebLinkAbout08. (Handout) Request for accommodation re payment of capacity feesCental Centra Costa Sanitary District
'~ BOARD OF DIRECTORS
POSITION PAPER
Board Meeting Date: January 7; 2016
sul3jecz: REQUEST FOR ACCOMMODATION REGARDING PAYMENT OF
CAPACITY FEES FOR EL AGUILA RESTAURANT (APN 127-040-020)
Submirree ay: inidaring uepr./uiv.:
Nomas Bright5ill, Senior Engineer Planning and Development/
Engineering and Technical Services
REVIEWED AND RECOMMENDED FOR BOARD ACTION:
D. Gemmell — Planning & Development Division Manager
JM. Petit — Director of Engineering & Technical Services Rent AIM oyer S. Bailey
VvT1n3cl Tvr Me 0I3trlat ei feral Planayer
ISSUE: A ratepayer has requested a deviation from District Code regarding the timing
of collection and payment of capacity fees. This requires approval of the Board of
Dircctur,s.
BADKGRQuND: IDIs. Uiorgia 5uardini, owner of EI Agaila Restaurant which is a tenant
at the shopping center located at 1300 Contra Costa Boulevard in Pleasant Hill,
properly submitted plans for a remodel of her restaurant's kitchen. During plan review,
District staff discuvered that the space had uriyinally been used for retail and that nu
additional Capacity tees were poria when a previous ter rant uunveFlea the space to a
restaurant. Plan review is complete and payment of the 4i31,310.07 capacity tee is the
only outstanding item. Ms. Scardini is willing to pay the fee but she is unable to do so in
a single payment.
Under Section 1 6. 12 of uistrict Code, the properffy ownim and tenant are"Jointly and
severally" lia61e for capacity tees when a change in use resalts in an added wastewater
burden.
The Dishict's Cayaciiy Use Charyc Proyram is desiyned to alluw busi, resses with high
capacity tees to spread those payments over time. IVIs. 5uardini and District staff have
met with the properffy owners' representative to explain the program; but the property
manager is unwilling to enter into a Capacity Use Charge Program agreement.
Ms. Scardini has hired and scheduled a uunir tuiur to staff work un January 5, zui a on
her renovation project. Ms. Scardini has stated that she will incur additional costs and
hardships it her project is delayed because the District's review ut tier puns is being
held pending the resolution of capacity fee issues.
ALTERNATIVES/CONSIDERATIONS: The Board of Directors uuuld direct staff to bill
the property owner for the additional capacity tees resulting trom the prior conversion of
the space trom retail to restaurant. I he demand letter could reiterate the otter of a
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POSITION PAPER
voat—a meering ware: JaI I'uaiy t, Lu16
Sub vt-' REQUEST FOR ACCOMMODATION REGARDING PAYMENT OF
CAPACITY FEES FOR EC AGUICA FRESTAURAN i (APN 12/-041LI-U20)
Capacity use Cnarge Program agreement wMIcMi woola allow payment of the additional
tees uver 16 years. It the additional tees were not paid or the properly owner did not
agree to the Capacity Use Charge Program within 60 days, the additional capacity fees
would be declared delinquent and could be placed on 2016-17 property tax bill along
with II aerest al Id pe, Ialties. The properly uwner may choose to cullect moo, I Ie ur all of the
additiunal eapaeity fee from the tenant. it the 13uara of uiructurs selucts this uptiorr, statt
teel tHat it woold Be appropriate to approve the tenant's sewer permit tollowing the
conclusion of the Board Meeting as payment of the additional capacity fees would be
secured by the District's ability to place the charge on the property tax bill.
Alternatively, tMu tsoara of Directors cuula direct start to enter into an unsecorea
agreement directly with the tenant. IDIS. Scardini has indicated that a term of 15 years
with an annual interest rate of 6 % would be acceptable. The District has previously
entered into such agreements with tenants in similar situations with mixed results.
Under this alternative, the Dish int would have I IF methal Iism tu transfer the capacity fee
u5ligatiun to a new tenant snuoia ter rangy unange prior to tMe end ut tMe onsecored
payment agreement.
Finally, the Board of Directors could choose to take no action on this matter and direct
the business owner to work with the properly uwner to resolve the capauity fee issue.
FIIQARCIAE IMPAGT5: CiRely no tinanclal impacts as any solation is IiRely to include
interest payments.
COMMITTEE RECOMMENDATION: This matter has nut been reviewed by a
cumrrrittee doe to the time constraints stated oy the 6osinesb owner.
RECOMMENDED BOARD ACTION: Staff recommends that the Board of Directors
direct that the property owner be billed for the additional capacity fee and that staff be
directed to approve the tenant's sewer permit.
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