CITY COUNCIL AGENDA ITEM NO.
Meeting Date: August 13, 2002
Subject/Title: Approve a Resolution to clarify the standard payment plan agreement for water and sewer connection fees.
Submitted by: Engineering: B. Grewal/M. Huber
Finance: P. Ehler
Approved by: John Stevenson, City Manager
Approve a Resolution clarifying the existing water and sewer services connection agreement to allow payment of connection fees through property tax special assessments for owner occupied residential properties within the City limits, which require connection to the municipal system and authorize the City Manager to sign the agreement(s) upon recommendation of the City Engineer, the City Attorney and the Finance Director.
On March 23, 1999, the City Council established a policy including a Standard Payment Plan Agreement for sewer and water connection fees for existing residential properties utilizing private systems that are failing.
On October 9, 2000, the City Council authorized the City Manager to execute a standard agreement with a resident to pay sewer connection fees through the property tax special assessment.
The City of Brentwood imposes connection fees, which are calculated to equitably spread the infrastructure cost to all users on a fair-share basis as called for in State law. The cost to connect to the municipal sewer and water system and associated construction costs can cause a hardship for some families. The City of Brentwood continues to take a proactive approach in an attempt to assist these families with failing water and sewer systems. Staff continues to work with the County to allow residents to pay for the connection fees over a period of five to ten years through the tax roll. A five- year payment plan is available if the homeowner obtains only one service (sewer or water). A ten-year payment plan is available for both sewer and water fees.
This report is simply intended as a clarification measure to reiterate the meaning of the original policy established in 1999, which is to assist owner occupied residents.
None. An administration fee (2%) is charged yearly to the applicant and is rolled into the cost of the "loan".
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BRENTWOOD CLARIFYING THE EXISTING WATER AND SEWER SERVICES CONNECTION AGREEMENT TO ALLOW PAYMENT OF CONNECTION FEES THROUGH PROPERTY TAX SPECIAL ASSESSMENTS FOR OWNER OCCUPIED RESIDENTIAL PROPERTIES WITHIN THE CITY LIMITS, WHICH REQUIRE CONNECTION TO THE MUNICIPAL SYSTEM, AND AUTHORIZE THE CITY MANAGER TO SIGN THE AGREEMENTS UPON RECOMMENDATION OF THE CITY ENGINEER, THE CITY ATTORNEY AND THE FINANCE DIRECTOR.
WHEREAS, on March 23, 1999, the City Council established a policy including a standard payment plan agreement for sewer and water connection fees for existing residential properties within the City limits utilizing private systems that are failing; and
WHEREAS, on October 9, 2000, the City Council authorized the City Manager to execute a standard payment plan agreement with a resident to pay sewer connection fees through the property tax special assessment; and
WHEREAS, the City has established a proactive policy to make available to owner occupied residents a payment plan for water and sewer connection fees; and
WHEREAS, this policy assists families that may experience a hardship in paying all fees now and allows payment over a five to ten year period.
NOW, THEREFORE BE IT RESOLVED that the City Council of the City of Brentwood does hereby approve the clarification to the standard water and sewer payment plan agreement.
BE IT FURTHER RESOLVED that the City Manager is authorized to continue the execution of agreements upon the recommendation of the City Engineer, the City Attorney and the Finance Director.
PASSED, APPROVED AND ADOPTED by the City Council of the City of Brentwood at a regular meeting held on the 13th day of August 2002 by the following vote:
When Recorded Mail to:
City of Brentwood
150 City Park Way
Brentwood, CA 94513
Attention: City Clerk
CITY OF BRENTWOOD
STANDARD WATER AND SEWER SERVICES CONNECTION AGREEMENT FOR OWNER OCCUPIED RESIDENTIAL PROPERTIES
This Agreement is entered into as of the ____ day of ________ by and between the City of Brentwood (“City”) and ________________________ (“Owner”), the Owner and resident of Property located at _________________________ in the City of Brentwood (the “Property”). The Property is further described by A.P.N. _______________, and its legal description is attached hereto as Exhibit A.
This Agreement is for a sewer connection only, and does not include water at this time.
WHEREAS, as of the date of adoption of Resolution No. 99-86, the Property is improved with a residential dwelling, and is not connected to the City of Brentwood water and sewer system. The failure to utilize the City’s water and sewer systems is agreed by the parties to be detrimental to the general health, safety, and welfare of the Property and the community; and
WHEREAS, the Owner desires to enter into an agreement whereby the City will issue water and/or sewer connection permits to establish City of Brentwood water and/or sewer service to the Property; and
WHEREAS, the Owner agrees to pay the current City’s connection fees and agrees to bear at his sole expense the actual costs of constructing the sewer and water connections; however, in recognition of the fact that the City connection permit fees may be prohibitively high for certain Owners, the City permits the option of placing these fees as a special assessment on the County Secured Real Property tax roll for the Property; and
WHEREAS, the City must insure that its water system does not become contaminated, and therefore requires that Owner shall have an approved backflow prevention assembly installed, tested and certified at Owner’s sole expense, if the Owner’s water well is not abandoned and remains operable; and
WHEREAS, in furtherance of the City’s interest in promoting the general health, welfare, and safety of the community, the Owner, upon connection of the Property to the City sewer system shall abandon and dispose of the Property’s existing independent sewer systems in a manner required by state and municipal law.
WHEREAS, this agreement is authorized by, and shall be interpreted consistently with, the City’s standard form agreement.
NOW, THEREFORE, THE PARTIES HERETO AGREE AS FOLLOWS:
1. Connection of Water and Sewer Services.
1.1 Owner shall make application for City water and/or sewer service connection permits, pay the current sewer and/or water service initial deposit, and provide well information if applicable; i.e., location of the well on the Property, depth of well, casing size, and gallon per minute flow rate. Owner shall also purchase at his sole expense a water meter through the Building Department, if applicable.
1.2 Upon execution of this agreement and full compliance by Owner of the provisions herein, City shall grant a water/sewer service connection permit. Upon issuance of the permit, Owner shall either pay in full the current connection permit fee (including plumbing permit fee), currently $_________, or elect to have such amount imposed as a special assessment and lien against the Property in accordance with Section 2.
1.3 The Owner shall bear the sole expense of constructing the necessary facilities, lines and appurtenances including backflow prevention assembly (as may be necessary at the City’s discretion) to connect the Property to the City’s sewer and/or water service. Owner shall comply with all local, state and federal regulations applicable to the installation. Upon installation, Owner shall immediately notify City and obtain City inspection and testing approval; the costs of such inspection and testing shall be borne by Owner.
1.4 If an existing well is to be abandoned, Owner shall obtain a permit for abandonment of the well from the Contra Costa County Environmental Health Department and complete the well abandonment in a prompt manner, but no later than 30 days from connection to the City’s water system. If an existing septic system is to be abandoned, Owner shall obtain a permit for abandonment of the septic system from the Contra Costa County Environmental Health Department and complete the abandonment in a prompt manner, but no later than 30 days from connection to the City’s sewer system.
1.5 Upon completion of the abandonment, Owner shall obtain final inspection approval from the City Building Department and shall submit a certificate of abandonment from the County Environmental Health Department.
1.6 The Owner, upon connection to the City of Brentwood water and/or sewer services, shall be responsible for paying the periodic water and sewer service user rates and charges required by sections 14.01 et seq. and 13.04 et seq., respectively, of the Brentwood Municipal Code and City resolution or ordinance.
2. Connection Fee Payment Plan.
2.1 The City and Owner agree that the connection fees are denominated a special assessment and shall be placed by City on the Contra Costa County Secured Real Property Tax Roll as a special assessment to be imposed, collected and enforced in the same manner as ordinary municipal and other taxes. The County will impose a $250.00 yearly fee to maintain the levy code fee to for the loan, including the amounts set forth in Sections 2.2 and 2.3. As of the date of this agreement the total amount of this special assessment is $__________ but is subject to change. This total amount is subject to change if additional sums are incurred pursuant to Sections 2.2 and 2.3. This total amount shall be apportioned to be fully paid by Owner in five (5) years, with each pro rata payment due at the same time as Owner pays ordinary municipal and other taxes and assessments, twice each year. The schedule for each pro rata payment of the special assessment is shown on Exhibit 1. Notwithstanding the schedule, Owner shall pay the special assessment and other property taxes on time and in the manner required by the County Auditor-Controller.
2.2 The Owner agrees to pay any and all costs, fees, penalties, late charges or interest imposed by the County Auditor-Controller and the costs of recordation of this agreement imposed by the County Recorder’s Office.
2.3 The Owner agrees to pay the City’s administrative and/or legal costs in preparing, administering and enforcing this agreement, which amounts may be imposed upon the issuance of each building permit or placed as additional amounts to the special assessment. This may include the City’s inspection, testing, and curative costs for the backflow prevention assembly as set forth in Sections 3 and 4 as well as the following costs:
A. The deferment of City facility connection fees set forth in this section may be provided to said Owner and shall be repaid to the City when required in the manner set forth in this agreement. The deferred facility fees required by the City are generally described in Exhibit B attached hereto. Each of said fees relates to the sewer and water connection fees.
B. The principal amount of the facility connection fee deferral shall be $_______ with no interest accruing. A 2% administrative charge for processing the deferral will be added yearly to the remaining fees owed by Owner.
C. At the end of two years from the date of the issuance of the building permit, twenty percent (20%) of the principal amount including administrative charges are to be paid to the City by tax payment.
D. At the end of three years from the date of building permit issuance, twenty-five percent (25%) of the remaining amount plus administrative charge is to be repaid to the City by tax payment.
E. At the end of four years from the date of building permit issuance, twenty-five percent (25%) of the remaining amount plus administrative charge is to be repaid to the City by tax payment.
F. At the end of five years from the date of building permit issuance, all unpaid amounts are due and payable to the City by tax payment.
G. If the principal amount as of the date of this agreement plus the 2% yearly administration fee of $_______ for a total of $_________ is paid to the City directly, the fee will be paid in full and not go to the County for tax obligated roll; however, this is subject to change.
2.4 A lien for the amounts provided for in this agreement is hereby established upon the Property.
2.5 All amounts provided for in this agreement shall be fully paid to the City within five (5) years of the effective date of this agreement, as set forth above.
2.6 Any and all amounts due hereunder shall be immediately due and payable, at City’s election, upon the sale of the Property. This due on sale clause shall not inhibit the City’s choice of alternate remedies available by law.
2.7 In the event Owner fails to pay any amount owing hereunder, the City and/or the County on its own or the City’s behalf, has the right to exercise all rights and remedies and to maintain any action in law or equity to enforce the terms and covenants of this agreement. Without limiting the foregoing, the City shall have the right to proceed with foreclosure of the lien against the Property and the sale of the Property on execution as in other cases of the sale of real Property for all delinquent amounts, including interest, costs, attorneys’ fees and costs of the foreclosure proceedings.
2.8 The Owner and all persons claiming a right, title or interest to the Property shall be forever barred from any equity of redemption in and to the Property if the Property is sold as a result of foreclosure proceedings.
3. Installation of an Approved Backflow Prevention Assembly.
3.1 Relating to the installation of the backflow prevention assembly, the Owner shall arrange to have a City approved backflow prevention assembly installed on the Owner’s Property in accordance with section 7603, title 22 of the California Administrative Code. Once installed, City shall inspect and test the assembly and Owner shall pay the City’s costs for the initial testing and certification of proper installation and working order by the City Backflow Prevention Specialist.
4. Inspection and Maintenance of the Backflow Prevention Assembly.
4.1 The backflow prevention assembly shall be inspected and maintained annually. Owner shall arrange for a qualified inspector approved by the City Engineer to annually inspect the backflow prevention assembly. The Owner shall annually provide to the City Engineer a Certificate of Inspection, signed under penalty of perjury by the qualified inspector, which indicates the backflow assembly is fully operational. If the Owner fails to provide the certificate, the Owner acknowledges that the City shall then have the right to access the Property without prior notice and conduct an inspection of the assembly at the Owner’s expense. The City is authorized to perform repairs and replacement, as may be necessary, at the Owner’s expense. The Owner’s failure to pay any of the foregoing expenses shall provide City with the right to add such costs to the special assessment against the Property.
5.1 The covenants made in this agreement, particularly the special assessment and lien, shall be covenants which run with the land and shall bind all successors in interest to Owner, if applicable. This section does not limit the effect of Section 2.6, nor the effect of Section 5.2.
5.2 This agreement shall not be assigned without the express written consent of the City. It is understood that the personal financial history of Owner and promises made by Owner in this agreement are some of the inducements for City to enter into this agreement. There are no third party beneficiaries to this agreement, except for the County of Contra Costa.
5.3 If any action or proceeding is instituted by either party to interpret, challenge, enforce or which relates in any other way to this agreement, the prevailing party shall be entitled to reasonable attorneys’ fees and costs in addition to any other relief adjudged by the court.
5.4 In the event that an action or proceeding shall be brought by either party hereunder, the parties agree that venue of such action shall be held exclusively in a state court in the County of Contra Costa, California. This agreement shall be interpreted in accordance with, and governed by, the laws of the State of California.
5.5 If any provision of this agreement is for any reason held to be invalid or unenforceable, the remainder of this Agreement shall not be affected thereby and shall remain valid and fully enforceable.
5.6 Owner shall defend, indemnify and hold harmless the City, its officials, employees and agents for any and all actions, proceedings, damages, claims, costs and attorneys’ fees arising out of, or related to this Agreement, or for personal injury or property damage which may occur which is not solely attributable to the intentional misconduct or sole, active negligence of the City.
5.7 All parties have been invited to seek legal counsel in the review of this agreement. Should disputes arise concerning this agreement, the agreement shall be deemed to have been drafted mutually by all parties herein. This agreement including its attachments represents the entire, fully integrated understanding of the parties and supersedes any prior understandings. It shall not be amended in any way except through a separate writing executed by all parties.
IN WITNESS WHEREOF, the City and the Owner have executed this Agreement as of the date first above written.