HomeMy WebLinkAbout04.j. Consider formation of Smith Road CADCentral Contra Costa Sanitary District Y J
' BOARD OF DIRECTORS %
POSITION PAPER
Board Meeting Date: September 1, 2011
subject: CONSIDER THE FORMATION OF A CONTRACTUAL ASSESSMENT
DISTRICT (CAD) FOR PROPERTIES ON SMITH ROAD IN ALAMO FOR
INSTALLATION OF SEWER IMPROVEMENTS; ADOPT RESOLUTIONS OF
INTENTION TO CREATE SMITH ROAD CAD NO. 2011 -1 AND TO APPROVE OF
THE BOUNDARY
Submitted By: Initiating Dept. /Div.:
Russell Leavitt, Engineering Assistant III Engineering /Environmental Services
REVIEWED AND RECOMMENDED FOR BOARD ACTION:
)AV
R. Leavitt J. Miy oto -Mills C. Swanson A. Farrell K. Alm James A Kelly,
General Manager
ISSUE: Owners of properties on Smith Road in Alamo 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 for a CAD.
RECOMMENDATION: Approve initiating the formation of Smith 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. This action does not establish an interest rate for the CAD financing.
If the CAD receives final approval from the Board in the future, the estimated CAD
costs are $100,000.
ALTERNATIVES /CONSIDERATIONS: Reject or defer initiating formation of the CAD.
These actions would halt or delay the CAD proceedings.
BACKGROUND: Owners of properties located on Smith Road in Alamo have
contacted CCCSD staff to obtain information regarding connecting their homes to
CCCSD's public sewer system. The area where the CAD would be formed is shown on
Attachment 1.
The initial steps toward creation of Smith 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 proposed
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.
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POSITION PAPER
Board Meeting Date: September 1, 2011
Subject. CONSIDER THE FORMATION OF A CONTRACTUAL ASSESSMENT
DISTRICT (CAD) FOR PROPERTIES ON SMITH ROAD IN ALAMO FOR
INSTALLATION OF SEWER IMPROVEMENTS; ADOPT RESOLUTIONS OF
INTENTION TO CREATE SMITH ROAD CAD NO. 2011 -1 AND TO APPROVE OF
THE BOUNDARY.
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. The CAD policy uses voluntary assessment districts based on a contractual
assessment process. Participants will 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 would be CCCSD
reserves from ad valorem tax revenues or borrowed funds with an interest
rate based on the Local Agency Investment Fund (LAIF) rate plus 1 % or the
borrowed funds' interest rate plus 1 %, with a minimum interest rate of 6 %.
3. Assessment district formation criteria include requiring having a minimum of
five properties directly tributary to a proposed CAD facility; a minimum of 60%
of those properties must have existing homes served by septic tank systems;
and there can be no more than two dwellings per Participant Parcel. If one
person owns more than one property in a neighborhood, only one property
can be financed through the CAD. Exceptions to these criteria will be
considered by the Board on a case -by -case basis.
4. The obligation to pay assessments would be recorded as a lien against the
property. Participants would be 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 would be 10 years
with no interest penalty for early payoff.
6. The assessment district would 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
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POSITION PAPER
Board Meeting Date: September 1, 2011
subject. CONSIDER THE FORMATION OF A CONTRACTUAL ASSESSMENT
DISTRICT (CAD) FOR PROPERTIES ON SMITH ROAD IN ALAMO FOR
INSTALLATION OF SEWER IMPROVEMENTS; ADOPT RESOLUTIONS OF
INTENTION TO CREATE SMITH ROAD CAD NO. 2011 -1 AND TO APPROVE OF
THE BOUNDARY.
sewer system. The reimbursement fees will be used to first reduce the
outstanding assessments of the CAD participants, and any remaining
reimbursement fees will be distributed to the CAD participants.
The proposed Smith Road CAD No. 2011 -1 complies with the terms set forth in the
revised CAD policy approved at the February 1, 2001 Board of Directors meeting. The
CAD formation criteria are listed below:
CAD FORMATION CRITERION
PROPOSED SMITH ROAD CAD NO. 2011 -1
1. A minimum of five properties must be
1. There are five properties that would benefit
directly tributary to the proposed CAD
from the proposed CAD sewers.
facilities.
2. A minimum of 60 percent of the properties
2. All five of the properties are developed with
directly tributary to the proposed CAD
existing homes using existing septic
facilities must have existing homes served
systems.
by septic systems.
3. A Participant Parcel may not have more
3. None of the properties has more than two
than two (2) dwellings to participate in a
dwellings on it.
CAD.
The CAD Program is included in the fiscal year (FY) 2011 -12 Capital Improvement
Budget (CIB) on page 52. Staff has conducted a cash -flow analysis of the Collection
System Program budget and concluded that adequate funds are available for the
project.
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.
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POSITION PAPER
Board Meeting Date: September 1, 2011
subject CONSIDER THE FORMATION OF A CONTRACTUAL ASSESSMENT
DISTRICT (CAD) FOR PROPERTIES ON SMITH ROAD IN ALAMO FOR
INSTALLATION OF SEWER IMPROVEMENTS; ADOPT RESOLUTIONS OF
INTENTION TO CREATE SMITH ROAD CAD NO. 2011 -1 AND TO APPROVE OF
THE BOUNDARY.
RECOMMENDED BOARD ACTION: Authorize formation of a CAD consisting of five
properties on Smith Road in Alamo by:
Adopting a resolution of intention to create Smith Road Contractual Assessment
District No. 2011 -1 for the purpose of installing sewer improvements (Exhibit 1);
and
2. Adopting a resolution approving the boundary of the assessment district
(Exhibit 2)
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LEGEND:
CAD AREA POTENTIAL SEWER
EXISTING POTENTIAL PARTICIPANT
SEWER
Central Contra Costa Attachment
Sanitary District PROPOSED BOUNDARY
�- � SMITH ROAD
\l) CAD 2011 -01
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EXHIBIT 1
RESOLUTION NO. A0JJ -a 51
A RESOLUTION OF INTENTION BY THE CENTRAL CONTRA COSTA SANITARY DISTRICT
TO CREATE SMITH ROAD CONTRACTUAL ASSESSMENT DISTRICT NO. 2011 -1
FOR THE PURPOSE OF INSTALLING SEWER IMPROVEMENTS
WHEREAS, the public health and the environment will be best protected by the expansion of
the public sewer system;
WHEREAS, the construction and installation of a sanitary sewer pipeline, together with
appurtenant work and facilities, in areas not presently connected to the sewer system will
facilitate the elimination of potential public health problems due to failing septic systems; and
WHEREAS, it would be convenient and advantageous to establish a boundary around an area
within which CCCSD and property owners may enter into contractual assessments and make
arrangements to finance public improvements to parcels which are developed and where the
costs and time delays involved in creating an assessment district pursuant to alternative
provisions in the law would be prohibitively large relative to the cost of the improvement.
THEREFORE, the Board of Directors of the Central Contra Costa Sanitary District (Board)
resolves:
This Board intends to approve the following improvement under the authority of the
Municipal Improvement Act of 1911, as amended, to wit: construction and installation
of approximately 46 linear feet of sanitary sewer line, together with appurtenant work
and facilities located at Smith Road in Alamo, California.
2. This Board finds that the parcels within the Contractual Assessment District are
shown within the boundaries of the map entitled, "Proposed Boundaries of Smith
Road Contractual Assessment District No. 2011 -1."
3. This Board intends to levy a special assessment upon participating parcels within the
described district in accordance with the special benefit to be received by each parcel
of land, respectively, from the improvement. The improvement proposed will not
confer any special benefit upon any publicly owned land. Hence, there shall be
omitted from special assessment all public streets, alleys, and places and all land
belonging to the United States, the State of California, Contra Costa County, and
Central Contra Costa Sanitary District now in use in the performance of a public
function.
4. CCCSD intends to provide loan financing for the improvements, subject to the
availability of funds and any limitation on the commitment or expenditure of funds for
the Contractual Assessment District Program as may be established from time to time
by CCCSD's Board of Directors. Loans shall be repaid by assessments on the
property of participating parcel owners. Assessments shall be paid over a maximum
period of ten (10) years with interest at a rate to be fixed by CCCSD.
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 2012 -2013.
RESOLUTION NO. ?p / /,QS/
CAD Smith Road
Page 2 of 2
6. This Board appoints the General Manager or his designee, 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 is expected to be held on this matter before the CCCSD Board of
Directors on December 15, 2011 at the District Offices at 5019 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 15061(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 1st day of September, 2011, by the Board of Directors of the
Central Contra Costa Sanitary District by the following votes:
AYES: Members:
NOES: Members:
ABSENT: Members:
COUNTERSIGNED:
Elaine R. Boehme, CIVIC
Secretary of the District
Central Contra Costa Sanitary District
County of Contra Costa, State of California
Approved as to form:
Barbara D. Hockett
President of the Board of Directors
Central Contra Costa Sanitary District
County of Contra Costa, State of California
Kenton L. Alm, Esq.
Counsel for the District
EXHIBIT 2
RESOLUTION NO. 0?0 // -05 Z
RESOLUTION APPROVING BOUNDARY MAP
SMITH 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 Smith 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 Smith 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, and CCCSD 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 1st day of September, 2011 by the Board of Directors of the Central
Contra Costa Sanitary District by the following vote:
AYES: Members:
NOES: Members:
ABSENT: Members:
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:
Barbara D. Hockett
President of the Board of Directors
Central Contra Costa Sanitary District
County of Contra Costa, State of California
Kenton L. Alm, Esq.
Counsel for the District