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Home My WebLink About03.e.1) Approve updates to Board Policy No. BP 010-Contractual Assessment Districts (CADs)Central Contra Costa Sanitary District 3e.1 ' BOARD OF DIRECTORS 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 oKentAlm Roger s. Bailey Coun General Manage 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 C: \Users\dandersonWppData \Local \Microsoft \Windows \Temporary Internet Files \Content.Outlook \IM9F5ZMU \PP -CAD Policy Update 11- 05- 15.docx 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 BOARD POLICY ATTACHMENT Central Contra Costa Sanitary District I www.cenrraisan.vrg _ 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 inteRt .,f the GAD ens 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 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. The DiStFiGt Will GeRt'RWe with the PGIiGy ef a $1,000,000 per year budgetary GeiliRg fG GADs during the fiSGal years 2001-02 and 2002 03. This Geiling aMOURt is te Ible , Number: BP 010 CONTRACTUAL ASSESSMENT DISTRICT POLICY STATEMENT Page 2 of 8 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. The DistriGt Beard Of 1)iFeGtGFS first appreved a GAP PEAGY Statement iR jaRuary 1999. Alse, at that time, the Beard authorized $1,000,000 oer fisGal vear for three f4,;P;:11,1 . 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 followingG4D fermafien criteria. DiStFiGt staff will make a thresheld eligibility determiRation and w;" 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. -• . ■ ■ ■ .. .. . ■ -- - Wad.. , .. . .. .- 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. The DistriGt Beard Of 1)iFeGtGFS first appreved a GAP PEAGY Statement iR jaRuary 1999. Alse, at that time, the Beard authorized $1,000,000 oer fisGal vear for three f4,;P;:11,1 . 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 followingG4D fermafien criteria. DiStFiGt staff will make a thresheld eligibility determiRation and w;" 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 mm wx THE Number: BP 010 CONTRACTUAL ASSESSMENT DISTRICT POLICY STATEMENT Page 4 of 8 rim �E�.- -• -. .. Few MC .. _ =C_n■ .■ _.■ ■ . .. . .. .. . :. . .. ■ Sm •- ■ .. . • . Number: BP 010 CONTRACTUAL ASSESSMENT DISTRICT POLICY STATEMENT Page 5 of 8 •- .. A -Mel _ -- - .. .. _. _ M M - -- - -- - Number: BP 010 CONTRACTUAL ASSESSMENT DISTRICT POLICY STATEMENT Page 6 of 8 .. STM _.... _�� ... -._ .. - - It -• - Number: BP 010 CONTRACTUAL ASSESSMENT DISTRICT POLICY STATEMENT Page 7 of 8 R€IMBURR €MF—NI-TFEE CAL C ii nT0 MWAT.W27M 1=ee ON I all C� i Net Cost to All ziGipa4#s $4,00 8 $16,089 $ a89 � _ _ $2,66 $16,999 - x-68 -7 $13,333 � $13,333 $80,000 $11,429 6 — $13'333 $i — $11,429 .. A ■ • •. . 2d .• •. • . 1 ■ •• MWAT.W27M ON I all .. ■ - Number: BP 010 CONTRACTUAL ASSESSMENT DISTRICT POLICY STATEMENT Page 8 of 8 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 BOARD POLICY ATTACHMENT Central Contra Costa Sanitary District I L www.ceinrd san.vrg - 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.