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HomeMy WebLinkAbout06.a.2) (Handout) Potential El Toyonal CADItem No. 6.a.2 Potential El Toyonal -Alta Vista - Dos Osos Contractual Assessment District (CAD) Russell Leavitt December 15, 2011 Central Contra Costa Sanitary District CAD Organizing • Several property owners in the El Toyonal hill area of Orinda have been trying for several years to organize a CAD to construct a public main sewer. • Potential CAD cost per property is high due to the cost of constructing in El Toyonal (steep, narrow, windy, only access road); large properties. • With all participating, $20,000 - $30,000 per property for street sewer; plus $15,000+ in connection fees and lateral construction costs. Ho ndacF� 6.a,z) 1 About El Toyonal • El Toyonal is in an EBMUD drinking watershed. • Area has been under a County Health Dept. Septic Moratorium since 1970: no new septic systems allowed on undeveloped properties; only repairs /replacements on developed properties. • Total unserved properties in this area: 25 developed, 20 vacant. 2 '-'Q ORINDA POTENTIAL ELTOYONAL CAD AREA CANINO PASLO STATE NORAOA ROUTE 2A WAY 1 N D About El Toyonal • El Toyonal is in an EBMUD drinking watershed. • Area has been under a County Health Dept. Septic Moratorium since 1970: no new septic systems allowed on undeveloped properties; only repairs /replacements on developed properties. • Total unserved properties in this area: 25 developed, 20 vacant. 2 Current CAD Rules • At least 60% of benefitting properties must already be developed. Initial participants cover the entire project cost, including non- participants' share. • CCCSD charges higher of LAIF + 1% or minimum 6% in interest on assessments financed on tax roll for up to ten years. • With only 50% participation, starting cost is doubled for initial participants, who then wait for up to 20 years for reimbursement from non - participants; reimbursement not guaranteed. 3 Greater Involvement by CCCSD? • Would CCCSD cover the non - participants' share of sewer main construction costs? • CCCSD could be reimbursed by non- participants as they connect (as done with Alhambra Valley Assessment Districts — AVADs). • Reimbursement amounts could be adjusted annually to compensate for lost investment opportunity costs. - D Considerations • Greater involvement could be accomplished with the currently budgeted CAD funds ($500,000 per year for next ten years). • Greater involvement would slow repayment of CAD funds. No time limit on repayments from non - participants. • Other CADs may want a similar arrangement. 21 Options • Maintain current policy requiring participants to cover the cost for non - participants. • Grant the El Toyonal group's request that the District cover the cost for non - participants. • Review the CAD policy and consider the Alternate levels of District participation in future CADs. • Other? Questions...? D 5