HomeMy WebLinkAbout06.a.2) (Handout) Letter from Robert C. CheastyCHEASTY & CHEASTY
ATTORNEYS AT LAW
1604 SOLANO AVE., P. O. BOX 8357
BERKELEY, CA 94707
Robert C. Cheasty
Azadeh Malek
Richard Korb (of counsel)
Dec. 13, 2011
Barbara Hockett, President
James Nejedly, President Pro tem
Michael McGill, Director
Mario Messini, Director
David Williams, Director
Board of Directors
Central Contra Costa Sanitary District
5019 Imhoff Place
Martinez, CA 94553 -4392
Re: El Toyonal /Alta Vista/Dos Ossos Sewer Project
Dear President and Board of Directors,
No nd w4)
6 - a -.2)
tel: 510.525.1000
fax: 510.526.3672
I represent Robert and Ingrid Wander, two of the property owners
who will be affected by your decision today. We fully support the suggested
action before the Board today, to expand the use of the CAD.
Due to the health issues and risks to the watershed, a moratorium on
the development of new septic tanks has been in place for over forty years in
this area. It is populated by numerous dwellings with septic systems that are
at risk of failing, and when they fail they endanger the heath and safety of
the watershed.
The District has an interest in replacing them with a sanitary sewer
system and the proposed action before you today would solve the health risk
and overcome the barrier of the costs in doing this.
The action proposed would entice the maximum participation by the
affected property owners and, in the long run, be a financial benefit to the
District. As staff points out, there are steps the District can take to encourage
participation, e.g. increase latecomer reimbursement fees by a percentage
linked to LAIF; and offer financing to those participants adding on later.
If the District would take the approach it used in the Alhambra Valley
(AVAD), and even extend a 20 year amortization to participants, the District
would ensure maximum participation by property owners.
We ask that the District front the costs of the entire project, including
the costs of the non - participants, and offer financing to participants at 6%
interest with an amortization over 20 years.
With this approach the costs to the participants would be only $179.11
per month, assuming 24 participants and a cost of project of $600,000.
This reasonable financing will encourage maximum participation
while the 6% interest ensures the District gets substantial benefit. Plus, the
District can assure the fastest repayment by requiring a due on sale /refinance
clause. Thus, the outlay by the District will be constantly reduced by the
repayment of the loan when property is sold or refinanced.
Below is a breakout of the attractiveness of the costs.
$600,000 cost estimate
6% per year finance rate
20 year amortization and payment schedule
240 payments
$1,031,660.72 = total loan repayments
$431,660.72 = total interest paid over the 20 years
$4,298.59 = monthly payment
Monthly payment
$171.94 per month per participant assuming 25 participants
$179.11 per month per participant assuming 24 participants
$214.93 per month per participant assuming 20 participants
$286.57 per month per participant assuming 15 participants
$428.86 per month per participant assuming 10 participants
$859.72 per month per participant assuming 5 participants
Not included:
1) hookup fees per household; 2) private sewer line from house to the lateral
Thank you for your time and consideration.
Sincerely,
Robert C. Cheasty
RCC /mm