HomeMy WebLinkAbout08.a. (Handout) Potential El Toyonal-Alta Vista-Dos Osos CAD8.a.
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Item No. 8.a.
Potential El Toyonal -Alta Vista -Dos
Osos Contractual Assessment
District (CAD)
Jarred Miyamoto -Mills
Provisional Environmental Services Division Manager
May 17, 2012
Central Contra Costa Sanitary District
The El To onal 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.
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.
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ORINDA
POTENTIAL
ELTOYONAL
CAD AREA
CAMINO
PABLO
STATE
MORAOA
ROUTE 24
WAY
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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.
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 CAD Policy Exceptions
• Requested exceptions:
1) District to cover non - participants' shares.
2) Allow a longer repayment period for participants.
• 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. -_
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Scenario A: 20 Property CAD
• CAD to install 2,135 ft public sewer to serve
20 properties, including Cohn property:
— Public sewer cost for 12 participants (60 %) without
District covering non - participant's shares:
➢ $56,000 - $71,000 per participant
— Public sewer cost with District covering 8 shares
(40 %: $218,000 - $342,000):
➢ $34,000 - $43,000 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
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Scenario B: 35 Property CAD
• CAD to install 3,475 ft public sewer to serve
35 properties, including Wander property:
— Public sewer cost for 17 participants (49 %) without
District covering non - participant's shares:
➢ $58,000 - $75,000 per participant
— Public sewer cost with District covering 18 shares
(51%: $310,000 --$74--76,000):
➢ $28,000 - $37,000 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 - Non - Participants
• 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 - Non - Participants
• 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.
— Participants' assessment balances could be made
due on sale of property.
— Non - participant reimbursement amounts could 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).
Request for Longer Repayment Period
Allow 15 -year or 20 -year term, rather than the
current 10 -year repayment period.
• Considerations:
— Would extend the period over which the District would
be repaid by participants.
— Would reduce participants' annual payment.
— Would increase total interest paid to District.
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 exceptions:
1) District to cover non - participants' shares.
2) Allow a longer repayment period for participants.
In cases where a Board exception is made, the
public record should include documentation of
the special circumstances that justify District
participation.
Questions... ?