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HomeMy WebLinkAboutBOARD MINUTES 11-30-00 224 MINUTES OF THE ADJOURNED REGULAR BOARD MEETING OF THE DISTRICT BOARD OF THE CENTRAL CONTRA COSTA SANITARY DISTRICT HELD ON NOVEMBER 30, 2000 The District Board of the Central Contra Costa Sanitary District convened in an adjourned regular meeting in the District Offices Second Floor Conference Room, 5019 Imhoff Place, Martinez, County of Contra Costa, State of California, at 3:00 p.m. on November 30, 2000. President Lucey called the meeting to order. The Secretary of the District noted the attendance of the following Board Members. 1. ATTENDANCE PRESENT: Members: Nejedly, Menesini, Boneysteele, Lucey ABSENT: Members: Hockett Member Hockett had advised staff that she would be late and requested that the meeting begin without her. Member Hockett entered the meeting at the hour of 3:30 p.m. 2. PUBLIC COMMENTS None 3. BOARD WORKSHOP a. RECEIVE PRESENTATION AND CONSIDER RECOMMENDATIONS RELATING TO THE CONTINUATION OF THE CONTRACTUAL ASSESSMENT DISTRICT (CAD) PROGRAM Mr. Charles W. Batts, General Manager, introduced Ms. Ann E. Farrell, Director of Engineering, who stated that 1998 was the first official year of the District's Contractual Assessment District (CAD) program. The CAD program was to be revisited in three years but because of several questions and Board concerns, it is appropriate to have the workshop at this time. Ms. Farrell introduced Mr. Curt Swanson, Environmental Services Division Manager, who thanked the Board for conducting this workshop now rather than waiting until the end of the fiscal year. It is appropriate at this time for the Board to review the accomplishments and effectiveness of the CAD program and to consider whether to continue the program in its current form or to modify it. This timing will fit well with preparation of the Capital Improvement Budget (CIB). Mr. Swanson stated that the CAD program was initiated in 1997 with the goals of providing an easier and cost-effective method for homeowners with septic tanks to extend the public sewer and eliminating the use of septic tanks and the environmental impacts of septic tank discharges. Member Boneysteele cautioned that it is dangerous ground for the District to have a goal of eliminating septic tanks. Mr. Swanson stated that perhaps District goal is too strong a word, but there would certainly be a benefit derived from reducing the number of septic tanks. Mr. Swanson stated that the CAD program has been in place for over three years. The initial period in 1997 and early 1998 was a demonstration period. Currently there are ten CAD projects that have been completed or are under construction, and $ 1,207,681 has been authorized for those projects. Five CAD projects are in design, with an estimated cost of $727,200. Two CAD projects, estimated at $260,000, are awaiting formation approval. Eighteen other neighborhoods are interested in CAD projects. 11 30 00 225 Member Menesini stated that the CAD procedures should prevent staff from bringing proposed CAD's to the Board for consideration that are questionable (do not meet the criteria) . Mr. Swanson acknowledged that as a possible problem, stating that it would be appropriate to discuss the process and perhaps change how things are brought to the Board. Ms. Farrell stated that one issue that had occurred to her and Mr. Swanson was that staff had recommended CAD's to the Board for approval that did not meet the current criteria. This put the Board in a position of voting against the staff recommendation in order to deny the CAD. Ms. Farrell proposed that a better approach would be for staff to recommend only those projects that meet the approved CAD criteria. For those that do not meet the criteria, staff should deny the request and provide for an appeal proce$S to the Board. Mr. Swanson concurred, and President Lucey stated that he would like to discuss this approach. Member Menesini stated that it would also be appropriate to let people know early in the process what the CAD criteria are. Mr. Batts agreed. Mr. Swanson stated that when staff was developing the concept of a CAD program, a survey was made of programs at more than 70 other sewering agencies in California. Ten had CAD-type programs. Two of those agencies, Cupertino Sanitary District and Russian River County Sanitation District, still have CAD-type programs which focus on individual properties. In addition it was learned that West Valley Sanitation District has such a program although it was not identified in the original study. Mr. Swanson stated that during 1996, 1997, and 1998, the Gary Way CAD in Alamo and Leona Court CAD in Alamo were funded as demonstration projects. In both cases, the Board authorized Sewer Construction Funds from the contingency portion of the CIB. Beginning in fiscal year 1998-1999, the Board established a formal CAD program budget of $1,000,000 per fiscal year for a period of three years. In the first year the projects funded totaled $440,000; in the second year the projects funded total $480,000; and in the cUrrent year the projects funded total $220,000 but it is anticipated that by the end of the fiscal year $750,000 will have been all~cated. Mr. Swanson reviewed the payments back that have been received to date and noted that more payments are expected in the next two weeks when the tax roll revenue is received. In response to a question from Member Nejedly, Mr. Swanson stated that no one has defaulted, and since it is included on the secured tax roll, the County would pay the District and pursue payment from the homeowner if the property tax bill was not paid. Member Hockett entered the meeting at the hour of 3:30 p.m. Mr. Swanson reviewed the various CAD funding alternatives as follows: . Continue with $1,000,000 per year funding authorization (no change in the current program); . Discontinue the CAD program at the end of the 2000-2001 fiscal year; . Establish a higher or lower funding limit; or . Consider an alternate source of funds (funds other than from the Sewer Construction Fund). Mr, Swanson stated that another area addressed in the CAD report provided to the Board, is the CAD formation criteria. The first five CAD projects were formed and authorized by the Board as demonstration projects. Criteria for the formation of CAD projects were developed from those five demonstration projects. In January 1999, the Board of Directors formally adopted a CAD policy which included criteria for formation of CAD projects, the process to be followed for the CAD program, and a methodology for 11 30 00 226 assessing the cost of each CAD participant. The criteria for formation of a CAD are as follows: . At least five properties must be directly tributary to the proposed facilities in order to form a CAD. . A minimum of 60 percent of the properties directly tributary to the proposed sewer facilities shall have existing homes served by septic tank systems. . The District's decision as to whether to form a CAD will be determined on a case by case basis and is at the sole discretion of the Board of Directors. The Board shall consider technical, economic, staffing, budget, and other factors in its decision whether to proceed to form a CAD. Mr. Swanson stated that there are many alternatives that the Board could consider if there is a desire to modify the criteria for forming a CAD. Based on comments from Board Members, the following alternatives have been developed for consideration: . Continue existing criteria. . Require that a dwelling with septic tank must exist on property (no vacant lots). . Limit the number of dwellings on a property. . Require that owner must reside on property. . Require that property be zoned single family residential. . Require that existing septic tanks must be failing. Mr. Swanson stated that one of the projects that came up this year was the proposed Flora Street project in Martinez. A letter requesting formation of a CAD was written to the Board by the property owners. There were several different exceptions that raised a red flag with staff and the Board. Those exceptions were: . Four (4) properties . Three (3) developed; one (1) vacant . Multiple dwellings: two (2) properties. with three (3) units and one (1) property with two (2) units . One (1) owner owns two (2) properties . Properties on Alhambra Creek . Expensive to sewer Mr. Swanson stated that this is one of the two properties on hold until after this CAD workshop. Mr. AI Morris, one of the Flora Street property owners, is present today and interested in the Board's deliberations. Mr. Swanson reviewed the staff recommendations as follows: . . 11 Continue with CAD policy adopted by Board Resolution No. 99-010 except as modified by subsequent recommendations. Modify the CAD formation crit~ria to specifically require that developed parcels participating in a CAD be owner-occupied unless unable to do so because of the condition of the existing septic tank system. 30 00 227 . Modify the CAD formation criteria to allow up to two (2) dwellings on a participating CAD property provided that the property owner occupies one of these dwellings. . Modify the CAD formation criteria to require that the same person or persons may only own one (1) property that could be served by a CAD project. . Continue the overall budget of $1,000,000 per fiscal year for the CAD program to fund individual CAD projects on a first come, first served basis. . Maintain the current level of public outreach for the CAD program. . Review the continuation and funding level of the CAD program again in four (4) years (end of fiscal year 2004-2005). Mr. Swanson stated that he believes the CAD program has been successful in bringing service to new customers. In the last four years, 84 homes have connected to the sanitary sewer system and there is a potential for another 11 homes on those same projects to connect in the future. Member Boneysteele asked if the proposed criteria and restrictions have been reviewed and approved by Counsel for the District Kent Aim. Member Boneysteele expressed concern about the constitutionality or confiscatory nature of any restrictions placed on the program. Mr. Swanson stated that the concept of additional criteria had been preliminarily discussed with Mr. Aim by telephone. Mr. Aim will be asked to do a more detailed review. Mr. Swanson proposed that the sar:ne low level of public outreach for the CAD program continue. At some point in the future, it may be appropriate to ramp up the public outreach if the number of CAD's start dropping off. Currently the CAD program is based purely on owner interest. Information is provided at the District Permit Counter and on the District web site, and staff responds to questions and inquiries. In response to questions from Member Menesini, Mr. Swanson stated that the County Health Department does know about the District CAD program and refers people to the District. President Lucey recommended that a time limit for each CAD project be instituted. Then if no progress being made on a particular CAD project, the money could be made available to others who may want to use it now.. This could be appealed if necessary if a problem arises. Member Hockett agreed. Mr. Swanson agreed, stating that for whatever reason the interest in a particular area may go away and the CAD project should be taken off the books. President Lucey stated that according to the list provided to the Board, 187 units are included in the CAD's currently authorized by the Board. Then on page 2 of the CAD report, it indicates that there is an additional 1,200 homes on septic tanks adjacent to the District service area. Mr. Batts stated that is correct, but some of the 1,200 homes on septic tanks are located in areas where a public sewer exists. Staff estimates that approximately 600 homes could take advantage of the CAD program. Member Nejedly stated that in his opinion any septic tank is failing and so he does not agree with the criterion that a septic tank must be failing. Member Nejedly stated that he does not think that any home on a septic tank in a CAD should be restricted from participating. The original purpose of the CAD program was to help homeowners get off septic tanks. 11 30 00 228 Mr. Swanson stated that Contra Costa County defines a septic tank as a temporary system. Member Nejedly endorsed the proposed criteria with the exception of reviewing the CAD program in four years. Member Nejedly stated that four years is too long and suggested that the continuation and funding level of the CAD program be reviewed again in two years. It may be necessary to increase the $1,000,000 funding level because costs have gone up. Member Nejedly stated further that the Board should consider what the appropriate number of parcels should be. Five was selected initially but there are some islands with only three parcels. Member Nejedly suggested that the Board may wish to establish a three-parcel limit, if the three parcels are an island. In response to questions from Member Nejedly, Mr. Swanson described the Flora Street properties in Martinez, their location in proximity to Alhambra Creek, and issues relating to sewering the properties. Mr. AI Morris, Flora Street property owner, stated that he is employed by an engineering firm that does extensive assessment district work. Mr. Morris stated that he was very interested when he first talked to former District employee Jay McCoy about the District CAD program. Mr. Morris stated that the CAD program is not a gift. It is a method of financing like the California Veterans' Loan Program which has been in place since the 1920's. It does not cost the state anything and it helps California veterans. The City of Concord has problem areas much like this. They use the 191 1 Assessment District Act for that purpose. Mr. Morris stated that the big expense for small areas is the bond, and it is difficult to get a bond house interested in such a small project. The CAD program financing is not a gift because if the CAD is formed, the assessment becomes a lien on the property and gets paid before anything else, any of the other lenders. Discussion followed with regard to the specific situation relating to the Flora Street properties, dwellings, and vacant lot. Member Nejedly stated that he has had a problem with running a sewer line to a vacant lot because it inherently increases the value of the property and that is not the purpose of the District CAD program and it would not be alleviating a septic tank situation. Member Nejedly stated that one criterion should be that the property owners must live on each of the properties. Member Hockett asked if it is possible to have a CAD project and exclude a vacant lot. Mr. Morris stated that under the current District CAD program the total cost of the CAD project is divided by the number of participants. In the Flora Street case if the vacant lot is excluded, the cost would be divided by three and Mr. Morris would pay less. If the vacant lot is included, the cost would be divided by four and he would pay more (two lots) and his neighbors would pay less. President Lucey stated that the vacant lot would be worth more however, and Mr. Morris agreed. Discussion followed with regard to the multiple units on the properties that could be served by a Flora Street CAD. Member Nejedly stated that he believes this is acceptable since the property owners live there and the units already exist. . Member Hockett stated that is why the Board left the opportunity for Board review on a case by case basis. President Lucey stated that if the Board is not going to follow the criteria, he will vote against the proposed CAD. 11 30 00 229 Member Menesini ~tated that he was originally a strong proponent of having strong criteria, but he has mellowed on that. There will be exceptions no ry¡atter what criteria are established. Unique situations should be considered separately. President Lucey asked the consensus of the Board with regard to staff denying a request for formation of a CAD if it does not meet the criteria and allowing the p.roperty owners to appeal that staff decision to the Board, stating that it appears that Members Nejedly, Menesini, and Hockett support this. There appeared to be general agreement on this approach. Member Boneysteele stated that as he has stated previously, he is concerned that there could be unforeseen legal issues relating to the CAD program. In order to obviate that, Member Boneysteele requested that legal advice be obtained from District Counsel before the Board acts on modification to the CAD criteria. Member Boneysteele also asked that District Counsel sign each CAD position paper. Mr. Batts stated that District Counsel Kent Aim looks at all position papers. Mr. Aim did not review these criteria on this staff report. Staff will have Mr. Aim review the criteria before submission to the Board for adoption. President Lucey stated the consensus of the Board that the three original CAD formation criteria and the recommended modifications to the CAD formation criteria are acceptable with the exception that the program will be reviewed again in two years rather than four years and that consideration be given to a cut off date or time limit on individual CAD projects. Mr. Batts thanked the Board for their input. Staff will prepare a draft document for the Board's consideration. President Lucey and the Board of Directors commended staff on the excellent presentation and informative document which was presented to the Board for review prior to the workshop. 4. REPORTS/ANNOUNCEMENTS President Lucey distributed copies of a letter dated November 17, 2000 from Mr. Curt Kinney, Mayor of the City of San Ramon, relating to the November 8, 2000 incident at the San Ramon (Larwin) Pumping Station. 5. ADJOURNMENT There being no further business to come before the Board, President Lucey adjourned the meeting at the hour of 4:42 p.m. ¡j þ) l~ President of the Boar irectors, Central Contra Costa Sanitary District, County of Contra Costa, State of California COUNTERSIGNED: Se r ta of the Centr I C tra Costa Sa . ary District, County of Contra Costa, State of California 11 30 00