HomeMy WebLinkAbout07.a. (Handout) - staff presentationItem No. 7.a.
Potential El Toyonal -Alta Vista -Dos
Osos Contractual Assessment
District (CAD)
Jarred Miyamoto -Mills
April 5, 2012
-7.
Central Contra Costa Sanitary District
The El Toyonal Area of Orinda
• The area is in EBMUD's San Pablo Reservoir
watershed.
• The County Health Department imposed a
Septic Moratorium in 1970:
- Septic systems are not allowed for development of
vacant properties or expansion of existing homes.
- Limited repairs and replacements are only allowed
for existing homes.
MEN
Extension of the Public Sewer System
Several area property owners have been
working for many years to extend public sewer
service.
• Unsewered properties in this area:
- 25 developed + 20 vacant = 45 properties.
EN
ORINDA
POTENDAL
ELTOYONAL
CAD AREA
CWWO
PASLO
STATE
YORAOA
ROUTE 24
WAY
1
N
Extension of the Public Sewer System
Several area property owners have been
working for many years to extend public sewer
service.
• Unsewered properties in this area:
- 25 developed + 20 vacant = 45 properties.
EN
Current CAD Rules
• At least 60% of benefitting properties must
already be developed.
CCCSD charges higher of LAIF + 1 % or
minimum 6% interest on assessments
financed on tax roll for up to ten years.
Initial participants cover the entire project
cost, including non - participants' share.
For example, if 50% of properties participate, initial
cost is doubled for participants since they now
cover non - participants shares.
Request for District to Cover
Non - Participant's Shares
• Reasons for request:
— Septic Systems in EBMUD Drinking Watershed pose
a threat to public health and the environment.
— Unusually high costs for public sewer extension and
private side sewer for initial participants:
• El Toyonal is steep, narrow, windy and busy;
• City limits allowable working hours;
• Long laterals in difficult terrain.
it b
Example for 20 Property CAD
• CAD installed 2,000 ft public sewer to serve
20 properties, including Cohn property:
Public sewer cost for 11 participants (55 %) without
District covering non - participant's shares:
- $36,000 - $67,000 per participant
Public sewer cost with District covering 9 shares
($177,000 - $329,000):
- $21,000 - $38,000 per participant
• Additional costs for sewer connection:
- $10,000 - $20,000 per property for private side sewer
- $9,000 District fees, including Pumped Zone Fee
Example for 26 Property CAD
• CAD installed 2,300 ft public sewer to serve
26 properties, including Wander property:
Public sewer cost for 9 participants (35 %) without District
covering non - participant's shares:
- $61,000 - $93,000 per participant
Public sewer cost with District covering 15 shares
($310,000 - $476,000):
- $22,000 - $33,000 per participant
• Additional costs for sewer connection:
- $10,000 - $20,000 per property for private side sewer
- $9,000 District fees, including Pumped Zone Fee
Considerations
• District coverage of non - participant's shares
would slow District's recovery of CAD funds.
• It is possible that some properties may not
connect for many years, if ever.
• A number of area residents oppose the
extension of public sewer at this time.
- Do not want additional homes built.
- Object to paying the District's "carrying cost" as part
of non - participant's reimbursements.
- Do not want to be required to connect to the public
sewer involuntarily.
Considerations
Possible strategies to mitigate the slower
repayment of CAD funds if District covers non-
participants shares:
- Exclude vacant properties that are unlikely to be
developed.
- Financed assessment balances could be made
due on sale, transfer or refinancing of property.
- Reimbursement amounts would be increased
annually to compensate for lost investment
opportunity ( "carrying ") costs.
- Reimbursements from non - participants would
continue until all District funds are recovered (i.e.,
no sunset for reimbursement period).
D
Approach Suggested by
Capital Projects Committee
• Maintain current CAD policy that requires
participants to cover non - participants' shares,
but allows requests for the Board to consider
exceptions for special circumstances.
• Consider the requested exception for the District
to cover some or all El Toyonal -Alta Vista -Dos
Osos CAD non - participants' shares.
• In cases where a Board exception is made, the
public record should include documentation of
the special circumstances that justify District
participation.
Questions...?