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.
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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.
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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.
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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
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