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HomeMy WebLinkAbout05.d. Public hearing to re-approve St. Mary's Road Contractual Assessment District (CAD)5.d. CENTRAL CONTRA COSTA SANITARY DISTRICT PUBLIC HEARING TO RECEIVE COMMENTS ON APPROVAL OF THE ST. MARY'S ROAD CONTRACTUAL ASSESSMENT DISTRICT NO. 2011 -1 DISTRICT PROJECT NO. 6513 SUGGESTED AGENDA June 7, 2011 Another item on this meeting's agenda presents an option for the Board to reconsider its May 17, 2012 approval of Contractual Assessment District (CAD) Policy exceptions for the St. Mary's Road CAD. If the Board decides to reconsider this matter, it would be appropriate to continue or postpone the Public Hearing. I. Request staff presentation, including tabulation of the Proposition 218 ballots. Public Hearing: A. Receive public comments. B. Request staff response, as appropriate. C. Close Public Hearing. III. Board deliberation of the following actions regarding approval of the St. Mary's Road CAD No. 2011 -1: 1. Find that the project is exempt from CEQA. 2. Adopt a resolution confirming compliance with California Constitution, Article XIIID, Section 4. 3. Adopt a resolution approving the Engineer's Report, assessments, and ordering improvement. 4. Authorize the General Manager to execute an agreement with the St. Mary's Road CAD No. 2011 -1 participants. N: \ENVRSEC \Position Papers \Leavitt\2012 \6- 7- 12\Agenda Conduct Hearing St Marys Road 6 -7 -12 FINAL2.doc Central Contra Costa Sanitary District 14-46 ' BOARD OF DIRECTORS POSITION PAPER Board Meeting Date: June 7, 2012 subject CONDUCT A PUBLIC HEARING; ADOPT A RESOLUTION CONFIRMING COMPLIANCE WITH CALIFORNIA CONSTITUTION, ARTICLE XIIID, SECTION 4; ADOPT A RESOLUTION APPROVING ENGINEER'S REPORT, ASSESSMENT, ORDERING IMPROVEMENT AND FINDING THE PROJECT EXEMPT FROM CEQA; AND AUTHORIZE EXECUTION OF AGREEMENT WITH PARCEL OWNERS IN CONJUNCTION WITH THE ST. MARY'S ROAD CONTRACTUAL ASSESSMENT DISTRICT NO. 2011 -1, DISTRICT PROJECT NO. 6513 Submitted By Initiating Dept. /Div.: Russell Leavitt, Engineering Assistant III Engineering /Environmental Services REVIEWED AND RECOMMENDED FOR BOARD ACTION: 9AVv R. Leavitt T. Godsey I 'yamoto -Mills K. Alm Ann E. Farrell General Manager ISSUE: A public hearing must be conducted to consider objections and inquiries regarding the proposed assessment, the Resolution of Intention, the Engineer's Report, and any other comments regarding St. Mary's Road Contractual Assessment District (CAD) No. 2011 -1. RECOMMENDATION: Conduct the public hearing, find that the project is exempt from the California Environmental Quality Act (CEQA), and approve St. Mary's Road CAD 2011 -1, District Project No. 6513. FINANCIAL IMPACTS: The estimated total sewer main extension project cost is $375,000. ALTERNATIVES /CONSIDERATIONS: Continuing the public hearing to a later date or taking no Board action would delay the CAD proceedings, since the holding of a public hearing is required by law. BACKGROUND: A group of parcel owners in a St. Mary's Road neighborhood of Lafayette have requested that the District form a CAD for the purpose of financing a public sewer system that would benefit their properties. The Board approved a revised CAD policy at the February 1, 2001 meeting (Resolution 2001 -008). This policy amended the CAD Program, which provides financial assistance to District property owners so that they may extend the public sewer system to serve their properties. The project being considered for approval by the Board of Directors is the creation of a CAD to finance extension of a sewer main to a neighborhood and connection to the District public sewer system. The St. Mary's Road CAD meets all of the criteria for formation of a contractual assessment district. There are 13 properties that could benefit from this CAD project. N: \ENVRSEC \Position Pape rs\Leavitt\2012\6-7-1 2\PP Conduct Hearing St Marys Road 6 -712 FINAL.doc Page 1 of 7 POSITION PAPER Board Meeting Date: June 7, 2012 subject CONDUCT A PUBLIC HEARING; ADOPT A RESOLUTION CONFIRMING COMPLIANCE WITH CALIFORNIA CONSTITUTION, ARTICLE XIIID, SECTION 4; ADOPT A RESOLUTION APPROVING ENGINEER'S REPORT, ASSESSMENT, ORDERING IMPROVEMENT AND FINDING THE PROJECT EXEMPT FROM CEQA; AND AUTHORIZE EXECUTION OF AGREEMENT WITH PARCEL OWNERS IN CONJUNCTION WITH THE ST. MARY'S ROAD CONTRACTUAL ASSESSMENT DISTRICT NO. 2011 -1, DISTRICT PROJECT NO. 6513 The Board of Directors adopted a Resolution of Intention to form a CAD on March 17, 2011. The subject sewer would include approximately 1,557 linear feet of 1 -1/4 -inch diameter pressure main in a 4 -inch diameter casing and appurtenant works and facilities that will serve 13 existing properties. Eleven properties have existing homes presently relying on septic tanks. One property is undeveloped and one contains City of Lafayette ball fields and a community meeting building. A map showing the boundary and the proposed sewer location is presented as Attachment 1. On March 17, 2011, the Board of Directors adopted a resolution directing the preparation of a report for St. Mary's Road CAD No. 2011 -1. A report has been prepared, and assessments have been estimated. (The Engineer's Report was provided to the Board under separate cover.) A summary of project costs is provided in Exhibit "A ". This Engineer's Report reflects the boundaries and project length as revised at the April 5, 2012 Board meeting to serve 13 properties. On May 3, 2012, the Board of Directors set a public hearing for June 7, 2012. Since assessments are proposed to be levied on properties, the procedural requirements of Proposition 218 apply. Compliance with these requirements has been included in the documents and actions proposed for Board consideration. On May 17, 2012, the Board approved CAD Policy exceptions for St. Mary's Road CAD No. 2011 -1 to allow the District to cover up to 3.5 non - participant shares out of 14 total shares (the remaining 10.5 shares to be funded by participants and the City of Lafayette); to include a due -on -sale clause for participants' assessments, a provision for the District to recoup its lost investment opportunity cost, a requirement that non- participant reimbursements are to continue until all District funds are recovered; and directing staff to prepare a resolution documenting the Board's reasons for the CAD policy exceptions. The resolution cited under 2. b. below includes a listing of these reasons which include: • The properties within the CAD boundaries are adjacent to Las Trampas Creek, which is vulnerable to being adversely affected by septic system failures; • One of the properties is a large publically owned parcel (the City of Lafayette ball fields), whose share of the project cost is disproportionately small when compared to its acreage and long frontage on St. Mary's Road; N: \ENVRSEC \Position Papers \Leavitt\2012 \6- 7 -12 \PP Conduct Hearing St Marys Road 6 -712 FINAL.doc Page 2 of 7 POSITION PAPER Board Meeting Date: June 7, 2012 subject: CONDUCT A PUBLIC HEARING; ADOPT A RESOLUTION CONFIRMING COMPLIANCE WITH CALIFORNIA CONSTITUTION, ARTICLE XIIID, SECTION 4; ADOPT A RESOLUTION APPROVING ENGINEER'S REPORT, ASSESSMENT, ORDERING IMPROVEMENT AND FINDING THE PROJECT EXEMPT FROM CEQA; AND AUTHORIZE EXECUTION OF AGREEMENT WITH PARCEL OWNERS IN CONJUNCTION WITH THE ST. MARY'S ROAD CONTRACTUAL ASSESSMENT DISTRICT NO. 2011 -1, DISTRICT PROJECT NO. 6513 • The City of Lafayette desires to replace its existing holding tank system so as to eliminate the costly public expense of pumping out and hauling wastewater from the site as many as 40 times per year; • The willingness of the City of Lafayette and participating property owners to join with the District to cover the cost of non - participants' shares; • The difficulty and relatively higher cost of sewer construction and pavement restoration in St. Mary's Road; • The relatively high cost of private pump stations and pressure side sewers needed for connection to the multi -user low pressure public main sewer required by the site's topography; and • The proponents have indicated that the CAD may not be formed absent assistance with non - participants' shares. In order to continue the process for St. Mary's Road CAD No. 2011 -1, the following actions are necessary: 1. Conduct a public hearing to: a. Announce the tabulation of ballots submitted by owners of each affected parcel indicating approval or opposition to the proposed assessment, and b. Consider public testimony on the Resolution of Intention and the Engineer's Report. 2. If, at the close of the hearing, the Board finds that the ballot opposition is insufficient, the following resolutions may be considered and adopted: a. Resolution confirming compliance with California Constitution, Article XIIID, Section 4. b. Resolution approving the Engineer's Report, assessments, the May 17, 2012 CAD policy exception provisions, and ordering improvement. Agreement between the participating owners and the District are needed to establish the rights and obligations of both parties. District Counsel has prepared such an agreement in which the owners agree to: N: \ENVRSEC \Position Papers \Leavitt\2012 \6- 7 -12 \PP Conduct Hearing St Marys Road 6 -712 FINAL.doc Page 3 of 7 POSITION PAPER Board Meeting Date: June 7, 2012 subject CONDUCT A PUBLIC HEARING; ADOPT A RESOLUTION CONFIRMING COMPLIANCE WITH CALIFORNIA CONSTITUTION, ARTICLE XIIID, SECTION 4; ADOPT A RESOLUTION APPROVING ENGINEER'S REPORT, ASSESSMENT, ORDERING IMPROVEMENT AND FINDING THE PROJECT EXEMPT FROM CEQA; AND AUTHORIZE EXECUTION OF AGREEMENT WITH PARCEL OWNERS IN CONJUNCTION WITH THE ST. MARY'S ROAD CONTRACTUAL ASSESSMENT DISTRICT NO. 2011 -1, DISTRICT PROJECT NO. 6513 • Assessments being placed on their property bills; • Pay the assessments; • Accept responsibility for the design and construction of the sanitary sewer extension; • Require the contractor who is selected by the owners to maintain certain insurance coverage and pay prevailing wages; • Accept total responsibility for the costs associated with the sanitary sewer extension, including interest for District financing; • Payment of remaining assessment balance in full upon sale of their property; • Have the sanitary sewer extension constructed in accordance with District standards; • In some cases, cover the cost of non - participants; • The District annually adjusting reimbursement charges to be paid by non- participants upon connection; and • A requirement that non - participant reimbursements are to continue until all District funds are recovered. The District will: • Finance the costs of the sanitary sewer extension and assume up to 3.5 reimbursable non - participants' shares; • Accept the work of the contractor, provided the work is done in accordance with District standards; • Give owners an opportunity to pay off their assessments upfront or amortize their assessments on owners' tax bills; • Record as liens on the participants' properties the obligation of each participant to pay assessments; • Be reimbursed in full by receiving payments, including interest, for the total amount financed from owners over a ten -year period, and • Establish a reimbursement procedure for the District and property owners who cover the cost of non - participants. The estimated cost of the sewer main extension for St. Mary's Road CAD No. 2011 -1 is $375,000. The project is included in the fiscal year (FY 2011 -2012) Capital N: \ENVRSEC \Position Papers \Leavitt\2012 \6- 7 -12 \PP Conduct Hearing St Marys Road 6 -712 FINAL.doc Page 4 of 7 EXHIBIT "A" SUMMARY OF SEWER MAIN EXTENSION AND OTHER COSTS THAT COULD BE FINANCED UNDER ST. MARY'S ROAD CAD NO. 2011 -1 Construction — Sewer main extension $342,800 Engineering — Sewer main extension $13,200 District Services — Sewer main extension $19,000 SUBTOTAL — Sewer main extension $375,000 N: \ENVRSEC \Position Papers \Leavitt\2012 \6- 7 -12 \PP Conduct Hearing St Marys Road 6 -712 FINAL.doc Page 7 of 7 RESOLUTION NO. 2012 - 0 N %. RESOLUTION CONFIRMING COMPLIANCE WITH CALIFORNIA CONSTITUTION, ARTICLE XIIID, SECTION 4 ST. MARY'S ROAD CONTRACTUAL ASSESSMENT DISTRICT NO. 2011 -1 The Board of Directors of the Central Contra Costa Sanitary District (Board) resolves: 1. THAT the Board set 2:00 p.m. on June 7, 2012, at the Meeting Room of the Board of Directors, 5019 Imhoff Place, Martinez, California, as the time and place for a public hearing pursuant to California Constitution, Article XIIID, Section 4. 2. THAT pursuant to Article XIIID of the California Constitution, as amended by Proposition 218, commonly known as the "Right to Vote on Taxes Act," notice of the proposed assessment was provided to all owners of affected parcels within Central Contra Costa Sanitary District, which contained a ballot whereby each owner could indicate support or opposition to the proposed assessment. 3. THAT at the time and place for which notice was given, the Board conducted a public hearing, pursuant to California Constitution, Article XIIID, Section 4, and gave every person present an opportunity to comment on and object to the amount of the proposed assessment. 4. THAT the Board finds that less than a majority of parcel owners who returned ballots, weighted by financial obligation, opposed the proposed assessment. PASSED AND ADOPTED this 7th day of June 2012, by the Board of Directors of the Central Contra Costa Sanitary District by the following votes: AYES: Members: NOES: Members: ABSENT: Members: James A. Nejedly President of the Board of Directors Central Contra Costa Sanitary District County of Contra Costa, State of California COUNTERSIGNED: Elaine R. Boehme, CMC Secretary of the District Central Contra Costa Sanitary District County of Contra Costa, State of California Approved as to form: Kenton L. Alm, Esq. Counsel for the District RESOLUTION NO. 2012 - oN 3 RESOLUTION APPROVING ENGINEER'S REPORT AND ASSESSMENT AND ORDERING IMPROVEMENT ST. MARY'S ROAD CONTRACTUAL ASSESSMENT DISTRICT NO. 2011 -1 The Board of Directors of the Central Contra Costa Sanitary District (Board) resolves: THAT the Board has taken a series of actions preliminary to ordering the improvement in the St. Mary's Road Contractual Assessment District No. 2011 -1, Central Contra Costa Sanitary District (District), Contra Costa County, California, and now makes the following findings and orders: 1. The Board adopted a map showing the boundaries of the land potentially benefited by the proposed improvement. A copy of the preliminary boundary map will be filed in the office of the County Recorder of the County of Contra Costa in the Book of Maps of Assessment and Community Facilities Districts. 2. The Board adopted its Resolution of Intention to order the improvement described therein under the Municipal Improvement Act of 1911, and directed Jarred Miyamoto - Mills, Provisional Environmental Services Division Manager, as the Engineer of Work for the Assessment District, to prepare the report required by Section 5989.22 of the Streets and Highways Code. The improvement is generally described as follows: Construction and installation of approximately 1,557 linear feet of 1 -1/4 —inch diameter pressure main in a 4 -inch diameter casing, together with appurtenant work and facilities located at St. Mary's Road, Lafayette, California. 3. After completion of construction of the improvements, the District shall levy a contractual assessment upon participating parcels within the described St. Mary's Road Contractual Assessment District No. 2011 -1 in accordance with the Contractual Assessment District Policy, and with the benefit received by each parcel of land, respectively, from the improvement. The District shall prepare and record a map showing the final boundaries of the assessment district based on the actual number of properties whose owners sign an assessment contract with the District. 4, The Board called a hearing on the St. Mary's Road Contractual Assessment District No. 2011 -1. Notice of the hearing was given by publication and by mailing to affected parcel owners, all according to the Municipal Improvement Act of 1911. Affidavits of publication were filed with the Secretary of the District. 5. At the time and place for which notice was given, the Board conducted a public hearing pursuant to Section 5898.26 of the Streets and Highways Code, which included a summary of the Engineer's Report and gave every person present an opportunity to comment on and object to the proposed Contractual Assessment District Program improvement and the extent of the Assessment District. Resolution No. 2012 - St. Mary's Road CAD No. 2011 -1 Page 2 of 4 6. The number of written ballots returned to the District and submitted in opposition to the assessment do not exceed the ballots submitted in favor of the assessment, weighted according to the proportional financial obligation of the affected property. 7. The documents and events described in paragraphs 1 to 4, inclusive, are stated here in tabular form, with their dates and, where appropriate, their numbers. All documents are now on file with the District except as otherwise noted. Document or Event Date Number or Action a. Resolution of Intention 3/17/2011 2011 -008 b. Resolution Approving Boundary Map 4/5/2012 2012 -025 c. Boundary Map Filed with County Recorder pending -- e. Affidavit of Publication of Notice of Improvement pending -- 8. The Engineer's Report and each component part of it, including each exhibit incorporated by reference in the report is hereby approved. 9. The Engineer of Work, in the Engineer's Report has fairly and properly apportioned the cost of the improvement to each parcel of land in the Assessment District in compliance with the agreement between the owners and in. proportion to the special benefits derived by each parcel, in relationship to the entirety of the capital cost of the improvement. The Board hereby confirms and levies each individual assessment as stated in the Engineer's Report. 10. The improvement described in paragraph 2 and as detailed in the Engineer's Report is hereby ordered. 11. According to Section 10603 of the Streets and Highways Code, the District Finance Manager is hereby designated to collect and receive payment of the assessments. 12. There are a number of project circumstances, when taken together, warrant Contractual Assessment District Policy exceptions to allow the District to cover up to 3.5 non - participant shares out of 14 total shares; and to include provisions in the Contractual Assessment District Agreement requiring that prevailing wages shall be paid for construction work, that participants' assessments shall be due - on -sale of the assessed property, that the District shall recoup its lost investment opportunity cost by adjusting non - participant reimbursement fees annually, and that non - participant reimbursements shall continue until all District funds are recovered. These circumstances are as follows: Resolution No. 2012 - St. Mary's Road CAD No. 2011 -1 Page 3 of 4 a) The properties within the CAD boundaries are adjacent to Las Trampas Creek, which is vulnerable to being adversely affected by septic system failures; b) The presence of a large, publicly -owned parcel (City of Lafayette ball fields), whose share of the project cost is disproportionately small when considering its prospective two sewer connections as compared to its acreage and long frontage on St Mary's Road; c) The City of Lafayette desires to replace its existing holding tank system so as to eliminate the costly public expense of pumping out and hauling wastewater from the site as many as 40 times per year; d) The willingness of the City of Lafayette and participating property owners to join with the District to cover the cost of non - participants' shares; e) The difficulty and relatively higher cost of sewer construction and pavement restoration in St. Mary's Road; f) The relatively high cost of private pump stations and pressure side sewers needed for connection to the multi -user low pressure public main sewer required by the site's topography; and g) The proponent's have indicated that the CAD may not be formed absent assistance with non - participants' shares. 13. The Board independently finds that this project is exempt from the California Environmental Quality Act (CEQA) under CEQA Statute Section 21080.21 since it involves construction of a pipeline less than a mile in length in a public right -of- way. Resolution No. 2012 - St. Mary's Road CAD No. 2011 -1 Page 4 of 4 PASSED AND ADOPTED this 7th day of June 2012, by the Board of Directors of the Central Contra Costa Sanitary District by the following votes: AYES: Members: NOES: Members: ABSENT: Members: James A. Nejedly President of the Board of Directors Central Contra Costa Sanitary District County of Contra Costa, State of California COUNTERSIGNED: Elaine R. Boehme, CIVIC Secretary of the District Central Contra Costa Sanitary District County of Contra Costa, State of California Approved as to form: Kenton L. Alm, Esq. Counsel for the District