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Home My WebLink About05. Public Hearing to place fees on tax rollCentral Contra Costa Sanitary District BOARD OF DIRECTORS POSITION PAPER Iii) Board Meeting Date: July 21, 2016 Subject: CONDUCT A PUBLIC HEARING TO RECEIVE COMMENTS ON AND CONSIDER ADOPTION OF A RESOLUTION DIRECTING THAT THE FISCAL YEAR 2016-17 SEWER SERVICE CHARGES, CAPACITY USE CHARGES, ASSESSMENTS FOR CONTRACTUAL ASSESSMENT DISTRICTS, ASSESSMENTS FOR ALHAMBRA VALLEY ASSESSMENT DISTRICTS AND CHARGES FOR OTHER FEE INSTALLMENT PAYMENT PROGRAMS BE COLLECTED ON THE CONTRA COSTA COUNTY PROPERTY TAX ROLL Submitted by: Initiating Dept./Div.: Thea Vassallo, CPA, CMA Finance Manager Administration / Finance & Accounting Thomas Brightbill, Senior Engineer Engineering & Technical Services / Planning & Development Services Reviewed and recommended for Board action: D. Gemmell — Planning & Development Services Div. Mgr. J.M. Petit — Director of Engineering & Technical Services K. Alm Roger S. Bailey Counsel for the District General Manager ISSUE: District Code and state law require a public hearing for placing the Sewer Service Charges (SSC), Capacity Use Charges, assessments for Contractual Assessment Districts (CADs), assessments for Alhambra Valley Assessment Districts (AVADs), and charges for other fee installment payment programs on the Contra Costa County tax roll for collection. A resolution of the Board of Directors passed by four affirmative votes is needed to place charges on the Contra Costa County property tax roll for collection. RECOMMENDATION: Conduct a public hearing and adopt a resolution directing that the Fiscal Year (FY) 2016-17 Sewer Service Charges, Capacity Use Charges, assessments for CADs, assessments for AVADs, and charges for other fee installment payment programs be collected on the Contra Costa County property tax roll. FINANCIAL IMPACTS: The estimated County -imposed fee for collection of the charges on the tax roll is $100,000. ALTERNATIVES/CONSIDERATIONS: Direct collection of these charges by District staff is an alternative. However, it is economical and efficient to collect the charges on the property tax bills. Owners of the properties subject to Capacity Use Charges, CAD and AVAD assessments, and charges for installment payment programs have signed agreements that the charges will be placed on the property tax roll. BACKGROUND: The SSC has been collected on the County tax roll since its inception in 1976. Contra Costa County imposed a fee for collecting the SSC on the tax roll in FY 1982-83. Page 1 of 2 POSITION PAPER Board Meeting Date: July 21, 2016 Subject: CONDUCT A PUBLIC HEARING TO RECEIVE COMMENTS ON AND CONSIDER ADOPTION OF A RESOLUTION DIRECTING THAT THE FISCAL YEAR 2016-17 SEWER SERVICE CHARGES, CAPACITY USE CHARGES, ASSESSMENTS FOR CONTRACTUAL ASSESSMENT DISTRICTS, ASSESSMENTS FOR ALHAMBRA VALLEY ASSESSMENT DISTRICTS AND CHARGES FOR OTHER FEE INSTALLMENT PAYMENT PROGRAMS BE COLLECTED ON THE CONTRA COSTA COUNTY PROPERTY TAX ROLL Certain commercial tenants and commercial property owners have entered into written agreements to participate in the District's Capacity Use Program for payment of Capacity Fees over a 15 -year period. These businesses are listed in Exhibit A. Property owners who have formed CADs have agreed to pay for sewer improvements over a 10 -year period. These properties are listed in Exhibit B. Property owners who have formed AVADs have agreed to pay for sewer improvements over a 15 -year period. These properties are listed in Exhibit C. Certain property owners have entered into written agreements to participate in the District's fee installment payment programs. These properties are listed in Exhibit D. Payments are to be collected by placing assessments and charges on each property owner's tax bill. Legal notices were published in the Contra Costa Times and the San Ramon Valley Times for the public hearing. Notice of the public hearing was also posted on the District's website. COMMITTEE RECOMMENDATION: The Finance Committee reviewed this matter at their June 27, 2016 meeting. RECOMMENDED BOARD ACTION: Conduct a public hearing and adopt a resolution directing that the FY 2016-17 SSC, Capacity Use Charges, assessments for CADs, assessments for AVADs, and charges for other fee installment payment programs be collected on the Contra Costa County property,tax roll. Four affirmative votes are required for adoption. Attached Supporting Documents: 1. Proposed Resolution 2. Exhibit A 3. Exhibit B 4. Exhibit C 5. Exhibit D Page 2 of 2 RESOLUTION NO. 2016- A RESOLUTION OF THE CENTRAL CONTRA COSTA SANITARY DISTRICT DIRECTING THAT THE FISCAL YEAR 2016-17 SEWER SERVICE CHARGES, CAPACITY USE CHARGE PROGRAM CHARGES, ASSESSMENTS FOR CONTRACTUAL ASSESSMENT DISTRICTS, ASSESSMENTS FOR ALHAMBRA VALLEY ASSESSMENT DISTRICTS AND CHARGES FOR OTHER FEE INSTALLMENT PAYMENT PROGRAMS BE COLLECTED ON THE CONTRA COSTA COUNTY. PROPERTY TAX ROLL WHEREAS, the Central Contra Costa Sanitary District (District) has previously developed and instituted a Sewer Service Charge Program for services and facilities furnished by the District to finance yearly Operation and Maintenance of the District; and WHEREAS, the Sewer Service Charge is collected through a direct charge to the users; and WHEREAS, the District has entered into written agreements with certain commercial tenants and commercial property owners to participate in the District's Capacity Use Charge Program for payment of Capacity Fees in annual installments over a fifteen -year period; and WHEREAS, the District has entered into written agreements with certain property owners who have formed Contractual Assessment Districts to pay for sewer improvements in annual installments over a ten-year period; and WHEREAS, the District has entered into written agreements with certain property owners who have formed Alhambra Valley Assessment Districts to pay for sewer improvements over a fifteen -year period; and WHEREAS, the District has entered into written agreements with certain property owners for payment of Capacity Fees and other certain charges over various periods; and WHEREAS, District Code provides that the District may elect to collect current charges on the property tax roll as provided by Section 5470 and following, of the California Health and Safety Code; and WHEREAS, it is considered economical and efficient to collect the Sewer Service Charges for the 2016-17 fiscal year on the Contra Costa County property tax roll; and WHEREAS, it is considered economical and efficient to collect the Capacity Use Charge Program charges for the 2016-17 fiscal year on the Contra Costa County property tax roll; and WHEREAS, it is considered economical and efficient to collect the assessments for the Contractual Assessment Districts for the 2016-17 fiscal year on the Contra Costa County property tax roll; and Resolution No. 2016 - Central Contra Costa Sanitary District Page 2 of 2 WHEREAS, it is considered economical and efficient to collect the assessments for the Alhambra Valley Assessment Districts for the 2016-17 fiscal year on the Contra Costa County property tax roll; and WHEREAS, it is considered economical and efficient to collect the charges for fee installment payment programs for the 2016-17 fiscal year on the Contra Costa County property tax roll; NOW, THEREFORE, be it resolved by the Board of Directors of the District that the Fiscal Year 2016-17 Sewer Service Charges, the Capacity Use Charge Program charges for the commercial tenants and commercial property owners as listed in Exhibit "A", the Fiscal Year 2016-17 assessments for Contractual Assessment Districts as listed in Exhibit "B", the Fiscal Year 2016-17 assessments for Alhambra Valley Assessment Districts as listed in Exhibit "C", and the Fiscal Year 2016-17 charges for other fee installment payment programs as listed in Exhibit "D" are to be collected on the Fiscal Year 2016-17 Contra Costa County Property Tax Roll, and that said Exhibits "A" through "D" inclusive are attached hereto and by this reference made a part hereof. Passed and adopted this 21st day of July 2016 by the Central Contra Costa Sanitary District Board of Directors by the following vote: AYES: Members: NOES: Members: ABSENT: Members: Tad J. Pilecki President of the Board of Directors Central Contra Costa Sanitary District County of Contra Costa, State of California COUNTERSIGNED: Elaine R. Boehme, CMC 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 THE EXHIBITS TO THE PROPOSED RESOLUTION ARE IN PROCESS. PLEASE SEE NOTES BELOW: Exhibit A — Capacity Use Charge Program charges* Exhibit B — Contractual Assessment District (CAD) charges** Exhibit C — Alhambra Valley Assessment District (AVAD) charges** Exhibit D — Installment payment plan charges** * Exhibit being prepared. A draft exhibit with parcel numbers and business names will be provided at the Committee meeting. Due to the date the water data was received from water purveyors, final charges will likely not be ready by the Committee meeting but will be available for the July 21, 2016 Board meeting agenda packet. ** Exhibit being prepared. The exhibit with FY 2016-17 charges will be provided at the Committee meeting.