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HomeMy WebLinkAbout04.e. Consider initiating formation of St. Mary's Road CADCentral Contra Costa Sanitary District B � ' BOARD OF DIRECTORS 7•�0 POSITION PAP Board Meeting Date March 17, 20 11 subject: CONSIDER INITIATING THE FORMATION of A CONTRACTUAL ASSESSMENT DISTRICT (CAD) FOR INSTALLATION of SEINER IMPROVEMENTS TO SERVE PROPERTIES ON ST. MARY'S ROAD IN LAFAYETTE; ADOPT RESOLUTIONS of INTENTION TO CREATE THE ST. MARY'S ROAD CAD NO. 2011 -1 AND FOR APPROVAL of THE CAD BOUNDARY Submitted By: Initiating Dept./Div.: Russell Leavitt, Engineering Engineering /Environmental Services Assistant Ill REVIEWED AND RECOMMENDED FOR BOARD ACTION: ,7 R. Leavitt J. Miy oto -Mills . sw son A. Farrell K. Alm qgftes M. Kell , neral Man er ISSUE: owners of properties in the St. Mary's Road in Lafayette are interested in connecting their homes to the Central Contra Costa Sanitary District (CCCSD) sewer system and have requested formation of a Contractual Assessment District (CAD) to finance an extension of the public sewer system. Board approval is required to initiate a CAD. RECOMMENDATION: Initiate formation. of the St. Mary's Road CAD No. 2011 -1. FINANCIAL IMPACTS: There are minor administrative costs for initiating the formation of a CAD. These costs eventually will be paid by the CAD participants if a CAD is actually formed. If the CAD receives final approval from the Board in the future, the estimated CAD costs are $400,000. ALTERNATIVES1CONSIDERATIONS: Reject or defer initiating formation of the.CAD. These actions would halt or delay the CAD proceedings. BACKGROUND: owners of properties located on St. Mary's Road in Lafayette have contacted CCCSD staff to obtain information regarding connecting their homes to CCCSD's public sewer system and financing the needed public sewer improvements through the formation of a CAD. The area where the CAD would be formed is shown on Attachment 1. Topographical conditions require that the proposed project be constructed as a multi - user low pressure sewer system, in which each property is served by an individual private pump that would connect to a low pressure, public main sewer in St. Mary's Road. Specifications for such systems are included in the District's 2010 Standard Specifications and several are already in use in the District. N. IENVRSECTosition Papers\Leavittl201113 -17 -1 1 Meeting\PP Initiatie St Mary's CAD 2011 -1 FINAL 3-17- 11.doc Page-1 of 8 POSITION PAPER Board Meeting Date: March 17, 2011 subjecc. CONSIDER INITIATING THE FORMATION OF A CONTRACTUAL ASSESSMENT DISTRICT (CAD) FOR INSTALLATION OF SEWER IMPROVEMENTS TO SERVE PROPERTIES ON ST. MARY'S ROAD IN LAFAYETTE; ADOPT RESOLUTIONS OF INTENTION TO CREATE THE ST. MARY'S ROAD CAD NO. 2011-1 AND FOR APPR OF THE CAD BOUNDARY The initial steps toward creation of the St. Mary's Road CAD No. 2011 -1 are for the Board of Directors to adopt a resolution indicating CCCSD's intention to designate an area within which contractual assessments are appropriate; briefly describing the proposed financing for the project; establishing the boundaries of the CAD; setting the time, date and place for a public hearing at which interested persons may inquire about or object to the proposed program; and directing staff to prepare an Engineer's Report describing the project and financing arrangements. An additional resolution is required to approve the boundary of the assessment district. By Resolution No. 2001 -008 on February 1, 2001, the Board adopted the CAD Program Policy Statement, which includes formation criteria, procedures, and definitions. Key features of the program are: 1. CADS use voluntary assessment districts based on a contractual assessment process. Participants sign a contract with CCCSD, agreeing to pay back funds fronted by CCCSD to cover the design and construction of infrastructure. 2. The source of funds to cover the assessment district costs is CCCSD's Sewer Construction Fund. 3. Assessment district formation criteria require: a) having a minimum of five properties directly tributary to a proposed CAD facility; b) a minimum of 60% of those properties must have existing homes served by septic tank systems; and c) there can be no more than two dwellings on a participant's property. If one person owns more than one property in a neighborhood, only one property's assessment can be financed through the CAD. Exceptions to these criteria will be considered by the Board on a case -by -case basis. 4. obligations to pay assessments are recorded as a lien against the properties. Participants are given the option to pay off their assessment within one month of the assessment being set or allowed to amortize the debt through payments on their property tax bills. 5. The amortization period for paying back funds to CCCSD is 10 years with no penalty for early payoff. The interest rate would be based on the Local Agency Investment Fund (LAI F) rate plus 1 % or the borrowed funds' interest rate plus 1%, with a minimum interest rate of 6 %. N:IENVRSEC1Position Papers\Leavitt1201113 -17 -11 Meeting\PP Initiatie St Mary's GAD 2011 -1 FINAL 3- 17- 11.doc Page 2 of 8 POSITION PAPER Board Meeting Date: March 17, 2011 subject CONSIDER INITIATING THE FORMATION OF A CONTRACTUAL ASSESSMENT DISTRICT (CAD) FOR INSTALLATION OF SEWER IMPROVEMENTS TO SERVE PROPERTIES ON ST. MARY'S ROAD IN LAFAYETTE; ADOPT RESOLUTIONS .OF INTENTION TO CREATE THE ST. MARY'S ROAD CAD NO. 20 AND FOR A PP R OVAL OF THE CAD BOUNDARY 6. CADs offer financing for the following property owners' costs: share of the sewer main extension design and construction costs, including the portion of.a private lateral sewer located in- the street. The cost of installing the lateral sewer on a participant's property, abandoning an existing septic tank, and the CCCSD capacity fee and other fees are specifically excluded from CAD financing. 7. CAD participants are responsible for the non - participants' share of the costs of the CAD facilities. CCCSD will establish reimbursement fees, which will be collected from non- participant parcels at the time of connection to the public sewer system. The reimbursement fees are used to reduce the outstanding assessments of CAD participants who took advantage of financing and are distributed to the CAD participants who have paid off their assessments. The proposed St. Mary's Road CAD No. 2011 -1 complies with the CAD policy as follows: CAD FORMATION CRITERION PROPOSED ST. MARY'S ROAD CAD NO. 2011 -1 1. A minimum of five properties must be 1. There are 17 properties that would benefit directly tributary to the proposed CAD from the proposed CAD sewers (including facilities. one City of Lafayette (City) property with two ball fields and a small meeting hall). 2. A minimum of 60% of the properties 2. Sixteen of the 17 properties (94 %) are directly tributary to the proposed CAD developed with existing homes using facilities must have existing homes served existing septic systems. The City property by septic systems. is served by two holding tanks. 3. A participant parcel may not have more 3. None of the properties is developed with than two dwellings to participate in a CAD. more than two dwellings. One of the properties that could benefit from the proposed CAD project is owned by the City of Lafayette. Two sports .ball fields and a community meeting room are located on this property. Under the current CAD Policy, financing is intended for residential properties, primarily owner - occupied properties, and not commercial properties. It is beneficial to the other residents for the City of Lafayette to participate in this sewer extension project; however, the City of Lafayette will have to fund their share of the project without CAD financing. N:IENVRSEC1Position Papers\Leavitt1201113 -17 -11 Meeting\PP initiatie St Mary's CAD 2011 -1 FINAL 3- 17- 11.doc Page 3 of 8 POSITION PAPER Board Meeting Date: March 17, 2011 subject: CONSIDER INITIATING THE FORMATION OF A CONTRACTUAL ASSESSMENT DISTRICT (CAD) FOR INSTALLATION OF SEWER IMPROVEMENTS TO SERVE PROPERTIES ON ST. MARY'S ROAD IN LAFAYETTE; ADOPT RESOLUTIONS OF INTENTION TO CREATE THE ST. MARY'S ROAD CAD NO. 2011 -1 AND FOR APPROVAL OF THE CAD BOUNDARY Initiating the formation of the CAD is the first of three Board actions for each CAD project. Board approval is required at the following three steps: 1. Initiation of a CAD. 2. Approval of the Engineer's Report and assessments; ordering of the improvements; and approval of the CAD election. 3. Approval and levying of the final assessments. The CAD Program is not included in the 2010 -11 Capital Improvement Budget. The estimated cost of the proposed St. Mary's Road CAD is $400,000. Staff will request the Board to. authorize funds for the St. Mary's Road CAD No. 2011 -1 from the Sewer Construction Fund at a future date if the project proceeds. Staff has concluded that this project is exempt from the California Environmental Quality Act (CEQA) under CEQA Guidelines Section 15061(b )(3), since it can be "seen with certainty that there is no possibility that the. activity in question may have a significant adverse effect on the environment." This certainty is based on CCCSD's past experience with numerous sewer construction projects of this nature, the relatively short distance involved, and the impact - limiting nature of CCCSD's construction specifications that would be required of the project. Approval of this project will establish the Board of Directors' independent finding that this project is exempt from CEQA. RECOMMENDED BOARD ACTION: Initiate formation of a CAD consisting of up to 17 properties on St. Mary's Road in the City of Lafayette by: 1. Adopting a resolution of intention to create the St. Mary's Road contractual Assessment District No. 2011 -1 for the purpose of installing sewer improvements (Attachment 2 ); and 2. Adopting a resolution approving the boundary of the assessment district (Attachment 3). N: IENVRSECTosition Pape rs\Leavitt1201113 -17 -11 Meeting\PP Initiatie St Mary's CAD 2011 -1 FINAL 3- 17- 11.doc Page 4 of 8 �� �; �` rAffit W 'M Jg64j0jjL OF INTENTION TO CREATE ST. MARY'S ROAD, CONTRACTUAL, ASSESSMENT DISTRICT NOi. 2011 -1 FOR THE PURPOSE OF INSTALLING SEWER IMPROVEMENTS WHEREAS, the public health and the environment will be best protected b the expanilsion, of the publ'ic sewer s WHEREAS, the coinstruction and instal�lation of a sanitar sewer pipeline, to with appurtenant work and faci'lIiitiies I in areas not pireseintl connected to the sewer s will ra,cilitate the elimination of potential public health problems due to failin septic s ani WHEREAS, it would be convenient and advanta to establish a, boundar around an are within which CCCSD and propert owners ma enter into contractual assessments and make arran to finance public improvements to parcels which are developed, and where the I costs and time dela involved in creatin an assessment d'istrict pursuant, to alternative provisions in the law would be prohibitivel lar relative to the cost of the improvement. I THEREFORE, the Board oif'Dliriectoirs of'the Central Contra, Costa Sanitar District (Board) resolves: 'i. This Board intends to approve the followin improvement under the authorit of the I Municipal Improvement Act oif 191 as amended, to wit: construiction and i installation I of apiproiximate, 1,800 linear feet of sanitar sewer line, to with appurtenant work and facilities located at St. Mary I! s Road in Lafa California. k. This Board finds that the parcels within the Contractual Assessment District are shown within the boundaries of the map entitled, "Proposed Boundaries of St. Mar Road Contractual Assessment District No. 201 -1. 9�111=112 Resolution No. 2911 - Page 2 of 2 St. Mary's Road CAD 2911 -1 5. The procedure for the collection of assessments will be the placement of assessments on participating parcel owners' tax bills. The first assessments may be placed on. owners' tax bills in fiscal year 2911 -2912. C. This Board appoints Curtis W. Swanson, Environmental Services Division Manager, as Engineer of Work for this project to prepare the report required by Section 5898.22 of the Streets and Highways code. 7. A public hearing shall be held on this matter before the CCCSD Board of Directors on June 18, 2911, at the District Offices at 5919 Imhoff Place, Martinez, California. This date is tentative and may be modified in the future. 8. The Board independently finds that this project .is exempt from the California Environmental Quality Act (CEQA) under CEQA Guidelines Section 15981(b)(3) since it can be "seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment." This certainty is based on CCCSD's past experience with numerous sewer construction projects of this nature, the relatively short distance involved, and CCCSD's impact- limiting construction specifications that would be required of the project. PASSED AND ADOPTED this 17th day of March, 2911 by the Board of Directors of the. central Contra Costa Sanitary District by the following vote: AYES: Members: NOES:. Members: ABSENT: Members: Barbara D. Hockett President of the Board of Directors Central Contra Costa Sanitary District County of contra costa, State of California COUNTERSIGNED: Elaine R. Boehme, CIVIC Secretary of the central Contra costa Sanitary District County of Contra Costa, State of California Approved as .to form: Kenton L. Alm, Esq. Counsel for the District Page 7 of 8 ATTACHMENT 3 RESOLUTION NO. 2011 -- A RESOLUTION OF THE CENTRAL CONTRA COSTA SANITARY DISTRICT APPROVING BOUNDARY MAP FOR ST. MARYIS ROAD CONTRACTUAL ASSESSMENT DISTRICT NO. 2011 -1 The Board of Directors of the Central Contra Costa Sanitary District (CCCSD) resolves: A map entitled "Proposed Boundaries of St. Mary's Road Contractual Assessment District No. 2011 -1" has been filed with the Secretary of the Central Contra Costa Sanitary District. This Board approves the map and adopts the boundaries shown on the map as describing the extent of the territory included in a proposed assessment district to be known as St. Mary's Road Contractual Assessment District No. 2011 -1, Central Contra Costa Sanitary District, County of Contra Costa, California. This Board intends to levy a contractual assessment upon participating parcels within the described District in accordance with the benefit to be received by each parcel of land, respectively, from the improvement. There shall be omitted from assessment, all public streets, alleys, and places and all land belonging to the United States, the State of California, Contra Costa County, the City of Lafayette and CCCSD except for the City of Lafayette ball fields property because it has been determined that no special benefit will be conferred on any such land within the District. This Board finds that the map is in the form and contains the matters prescribed by Section 3110 of the California Streets and Highways Code. This Board directs the Secretary of CCCSD to certify the adoption of this resolution on the face of the map and to file a copy of the map with the County Recorder for placement in the Book of Maps of Assessment and Community Facilities Districts. PASSED AND ADOPTED this 17th day of March, 2011 by the Board of Directors of I the Central Contra Costa Sanitary District by the following vote: AYES: Members: NOES: Members: ABSENT: Members: Barbara D. Hockett 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 Central Contra Costa Sanitary District County of Contra Costa, State of California Approved as to form: Kenton L. Alm, Esq. Counsel for the District Page 8 of 8