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HomeMy WebLinkAbout06.a. BP 010 - Contractual Assessment Districts (CADs)Central Contra Costa Sanitary District BOARD OF DIRECTORS pM[py POSITION PAPER Board Meeting Date: NOVEMBER 5, 2015 Subject: ADOPT UPDATED BP 010 — CONTRACTUAL ASSESSMENT DISTRICTS (CADs) Submitted By: Initiating Dept. /Div.: Thomas Brightbill, Senior Engineer Engineering & Technical Services / Planning & Development Services REVIEWED AND RECOMMENDED FOR BOARD ACTION: D. Gemmell — Planning & Development Services Division Mgr. JM. Petit — Director of Engineering & Technical Services Kent Alm Roger S. Bailey Counsel for the District General Manager ISSUE: Changes to Board Policies require the review and approval of the Board of Directors. BACKGROUND: As part of a review of all Board Policies (BP), BP 010 Contractual Assessment Districts (CAD) was reviewed. Several changes to the policy are proposed, including the removal of procedures and minor edits to make this policy consistent with a new policy on Alhambra Valley Assessment Districts. The revised BP 010 and corresponding Administrative Procedures are consistent with the existing policy. The Board of Directors will still review and approve CAD projects as they have previously done. ALTERNATIVES /CONSIDERATIONS: The Board of Directors could direct that additional edits and changes be made to the CAD policy. FINANCIAL IMPACTS: None by this action. COMMITTEE RECOMMENDATION: The updated policy was reviewed by the Administration Committee at the October 26, 2015 meeting. RECOMMENDED BOARD ACTION: Approve the updated BP 010 — Contractual Assessment Districts. Attached Supporting Document(s): 1. BP 010 — Strikeout showing proposed revisions 2. BP 010 —Final proposed Page 1 of 1 Number: BP 010 Authority: Board of Directors Effective: January 7, 1999 Revised: February 1, 2001, September 5, 2002, October 4, 2012, October 26, 2015 Reviewed: Initiating Dept. /Div.: Engineering /Planning & Development Services ERgiR nces BOARD POLICY ATTACHMENT 1 www.centralsan.org CONTRACTUAL ASSESSMENT DISTRICTS POLICY STATEMENT PURPOSE To encourage residential property owners to connect to the public sewer system. The Contractual Assessment District (CAD) program provides financial assistance to small groups of homeowners, often with inadequate septic tank systems, so that they may extend the public sewer system to serve their properties. The intent of the CAD program is te assist SiRgle family hemeowners with fai"Rg er inadequate sept*G taRks whe might RGt otherwise have the meaRS tG finaRc-e the Gest ef exteRdiRg the public. sewer. The CAD program is intended for residential properties, primarily owner - occupied, and not commercial properties. POLICY This policy statement establishes the criteria for formation of CAD projects. Nothing in this policy is intended to bind the District to continue with the program for any predetermined time period, nor does it create any right or entitlement in favor of potential program participants. The Board may consider technical, economic, staffing, budgetary, environmental and other factors in its consideration of whether to form a CAD. Funding The initial fundinq for design, construction and inspection of the sewer improvements will be provided by the District. This money is repaid by participating property owners either in a lump sum at the completion of construction or in 10 annual installments. The annual installments include a nominal interest rate, are secured by a lien on the property, and are collected on the property tax bill. The DiStriGt Will GentiRue with the PG'iGy ef a $1,000,000 per year budgetary Geiling fe GADS dUFORg the is mars 2001-02 and 2002-03. Thus c;e'I!Rg nmeunt is to-be eaGh fiSGai year. The Beard of DiFeGtOrS, in their diSGretieR, may medify this , Number: BP 010 CONTRACTUAL ASSESSMENT DISTRICT POLICY STATEMENT Page 2 of 8 nc-ludiR inereasiRg or deGreasing the budgetary ► MMMIM tn •- the DestriGt tG GGRtiRue the Za with prograrn -- 1. review the effeGtiveness ef the CAD the introduGfianLegal pregram at or near end of F'SGal Year 2002 03-. CADs are formed pursuant to Streets and Highways Code Section 5898, et seq. While the State Legislature has found that CADs are voluntary, imposed pursuant to an agreement and are not subject to Proposition 218, the District will not proceed with a CAD formation if a majority of ballots weighted by the proposed assessment are submitted in protest of the project Formation Criteria In order to be eligible for participation in the District's CAD assessment financing program, the proposed mainline sewer extension project must meet the followingGAD few- criteria. DiStFiGt staff will make a thresheld eligibility determin A minimum of five properties must be directly tributary to the proposed CAD facilities. 2. A minimum of 60 percent of the properties directly tributary to the proposed CAD facilities must have existing homes served by septic tank systems. 3. A participant parcel may not have more than two {�- dwellings to participate in a CAD. MMMIM ..• .. .. Za Formation Criteria In order to be eligible for participation in the District's CAD assessment financing program, the proposed mainline sewer extension project must meet the followingGAD few- criteria. DiStFiGt staff will make a thresheld eligibility determin A minimum of five properties must be directly tributary to the proposed CAD facilities. 2. A minimum of 60 percent of the properties directly tributary to the proposed CAD facilities must have existing homes served by septic tank systems. 3. A participant parcel may not have more than two {�- dwellings to participate in a CAD. Number: BP 010 CONTRACTUAL ASSESSMENT DISTRICT POLICY STATEMENT Page 3 of 8 .. ... Wrwlm M. ■ ■ •- . . _. ■ Mm ... .. _• _■ . .. ■ .. .. .. ■ . .. . ■ Wm Number: BP 010 CONTRACTUAL ASSESSMENT DISTRICT POLICY STATEMENT Page 4 of 8 .. . _ ■ . ITE ■ .. .. .._ -- 271TW2 Z A •- ■ -.. .. .. _. .. . _ ■ . ITE ■ .. .. .._ • - - ■ _. .. . _ ■ . ITE ■ .. .. .._ ■ .... _ .. .. . .. ..- ■ -r-11 -- - •- - Bob .. .. •-` -- .. .. -- - .■ ._ 2111 • •- •- ... .. _�■ _ . . . ■ . .. . _ ■ . ITE ■ .. .. .._ ■ .. _ .. .. . .. ..- ... . . ■ �- -- -• .. -• Bob .. .. .. .. e Number: BP 010 CONTRACTUAL ASSESSMENT DISTRICT POLICY STATEMENT Page 5 of 8 Imo. .. � ■ ... .. .. �. 4A ... .. .. AWAI &W.TW. U I .. .. . ■ ■ .. ... .. .. .. . .. . . .. . .. 013-5-VTOMW, . . Imo. .. � ■ ... .. .. �. 4A ... .. .. AWAI &W.TW. U I A ■ .. ... ... .. .. ... .. Imo. .. � ■ ... .. .. �. 4A ... .. .. .. . .. . . .. . .. .. .. ....... . . Number: BP 010 CONTRACTUAL ASSESSMENT DISTRICT POLICY STATEMENT Page 6 of 8 Number: BP 010 CONTRACTUAL ASSESSMENT DISTRICT POLICY STATEMENT Page 7 of 8 • •- REIMBURSEMENT FEE CAI C II ATtO NOR PartocipaRt z2 Fee i`redot to Each Pro.. Net Gest to All E eGt*en ParliGip aR PaFkipa44s C,✓�,F tf �t 5 $16,,000 - -•i�-= c�`t IJCC ^minty , $16 ,000 dCC3Cttd $80,000 = $2,66 $1 33d - $13,, 333 $41,429 =6 _ $1,994 $43,333- $1 $11,429 - $1 9.899 --7 $1,429 $11,429 $0_gg8 $ i X988 . ■ ... .. • . ■ ... .. . ■ .. . ■ ... • .. Number: BP 010 CONTRACTUAL ASSESSMENT DISTRICT POLICY STATEMENT Page 8 of 8 ._ .. ^TIN 111 ... _ ... Number: BP 010 [DO&IFIT Authority: Board of Directors Effective: January 7, 1999 Revised: February 1, 2001, September 5, 2002, October 4, 2012, October 26, 2015 Reviewed: Initiating Dept. /Div.: Engineering /Planning & Development Services BOARD POLICY ATTACHMENT 2 Central Contra Costa Sanitary District CONTRACTUAL ASSESSMENT DISTRICTS PURPOSE To encourage residential property owners to connect to the public sewer system. The Contractual Assessment District (CAD) program provides financial assistance to small groups of homeowners, often with inadequate septic tank systems, so that they may extend the public sewer system to serve their properties. The CAD program is intended for residential properties, primarily owner - occupied, and not commercial properties. POLICY This policy statement establishes the criteria for formation of CAD projects. Nothing in this policy is intended to bind the District to continue with the program for any predetermined time period, nor does it create any right or entitlement in favor of potential program participants. The Board may consider technical, economic, staffing, budgetary, environmental and other factors in its consideration of whether to form a CAD. FUNDING The initial funding for design, construction and inspection of the sewer improvements will be provided by the District. This money is repaid by participating property owners, either in a lump sum at the completion of construction or in 10 annual installments. The annual installments include a nominal interest rate, are secured by a lien on the property, and are collected on the property tax bill. LEGAL CADs are formed pursuant to Streets and Highways Code Section 5898, et seq. While the State Legislature has found that CADs are voluntary, imposed pursuant to an agreement and are not subject to Proposition 218, the District will not proceed with a CAD formation if a majority of ballots, weighted by the proposed assessment, are submitted in protest of the project. Number: BP 010 CONTRACTUAL ASSESSMENT DISTRICT POLICY STATEMENT Page 2 of 2 FORMATION CRITERIA In order to be eligible for participation in the District's CAD assessment financing program, the proposed mainline sewer extension project must meet the following criteria: A minimum of five properties must be directly tributary to the proposed CAD facilities. 2. A minimum of 60 percent of the properties directly tributary to the proposed CAD facilities must have existing homes served by septic tank systems. 3. A participant parcel may not have more than two dwellings to participate in a CAD.