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HomeMy WebLinkAbout03.e. Jackson Way Contractual Assessment District (CAD) in Alamo - Formation and BoundaryCentral Contra Costa Sanitary District 3.e. r BOARD OF DIRECTORS POSITION PAPER Board Meeting Date: January 7, 2016 Subject: CONSIDER THE FORMATION OF A CONTRACTUAL ASSESSMENT DISTRICT (CAD) FOR PROPERTIES ON NORTH JACKSON WAY, JACKSON WAY AND SOUTH JACKSON WAY IN ALAMO FOR INSTALLATION OF SEWER IMPROVEMENTS; ADOPT A RESOLUTION OF INTENTION TO CREATE SOUTH JACKSON WAY CAD NO. 2016-1 AND ADOPT A RESOLUTION TO APPROVE THE BOUNDARY Submitted By: Initiating Dept/Div.: Russell Leavitt Engineering and Technical Services/ Engineering Assistant III Planning and Development Services REVIEWED AND RECOMMENDED FOR BOARD ACTION: T. Brightbill — Senior Engineer &tl, (-),AD. Gemmell — Planning & Development Services Division Mgr. Kent aimRoger S. Bailed JM. Petit — Director of Engineering & Technical Services Counsel for the Dis ct General Manager ISSUE: Owners of properties on North Jackson Way, Jackson Wa Linden Court, Lyman Lane and South Jackson Way in Alamo are interested in connec mg their homes to the Central Contra Costa Sanitary District (District) sewer system and have requested formation of a Contractual Assessment District (CAD) to finance an extension of the public sewer system. Board approval is required for a CAD. BACKGROUND: Owners of properties located on North Jackson Way, Jackson Way, Linden Court, Lyman Lane and predominately South Jackson Way in Alamo have contacted District staff to obtain information regarding connecting their homes to the District's public sewer system. The area where the CAD would be formed is shown on Figure 1. The initial steps toward creation of South Jackson Way CAD No. 2016-1 are for the Board of Directors to adopt a resolution indicating the District's intention to designate an area within which contractual assessments are appropriate; briefly describing the proposed financing for the project; establishing the boundaries of the CAD; setting the proposed time, date, and place for a public hearing at which interested persons may inquire about or object to the proposed program; and directing staff to prepare an Engineer's Report describing the project and financing arrangements. An additional resolution is required to approve the boundary of the assessment district. If the CAD is initiated, the neighborhood will hire an engineer to preliminarily design a public sewer, obtain contractor bids, provide the District with the cost information so that an Engineer's Report (with project budget and contract) can be prepared and distributed to the neighborhood for a 45 -day review. After a Proposition 218 hearing and the obtaining of a sufficient number of contract signatures, the CAD will be brought back to Page 1 of 5 POSITION PAPER Board Meeting Date: January 7, 2016 Subject-' CONSIDER THE FORMATION OF A CONTRACTUAL ASSESSMENT DISTRICT (CAD) FOR PROPERTIES ON NORTH JACKSON WAY, JACKSON WAY AND SOUTH JACKSON WAY IN ALAMO FOR INSTALLATION OF SEWER IMPROVEMENTS; ADOPT A RESOLUTION OF INTENTION TO CREATE SOUTH JACKSON WAY CAD NO. 2016-1 AND ADOPT A RESOLUTION TO APPROVE THE BOUNDARY the Board for final approval. If approved, the CAD will be funded, construction will commence. Once construction is completed and all the costs are known, the Board will set the final assessment per participating property. Property owners will be able to pay off their assessment at that point or begin to finance the assessment on their property tax bill for up to ten years. The following are key features of the CAD program: 1. The CAD policy uses voluntary assessment districts based on a contractual assessment process. Participants will sign a contract with the District, agreeing to pay back funds initially provided by the District to cover the design and construction of infrastructure.. 2. The source of funds to cover the assessment district costs would be ad valorem tax revenues which are deposited each year in the District's Sewer Construction Fund. 3. Assessment district formation criteria include the requirement of at least five properties directly tributary to a proposed CAD facility; a minimum of 60% of those properties having existing homes served by septic tank systems; no more than two dwellings per Participant Parcel; and persons owning multiple parcels may finance only one parcel through the CAD. This proposed CAD has 22 directly tributary properties, all homes are on septic and no property has more than two dwellings, and no persons own more than one parcel. The proposed South Jackson Way CAD No. 2016-1, therefore, complies with the terms set forth in the revised Board Policy 010, Contractual Assessment Districts, approved at the November 5, 2015 Board of Directors meeting. 4. The obligation to pay assessments would be recorded as a lien against the property. Participants would be given the option to pay off their assessment within one month of the assessment being set or allowed to amortize the debt through payments on their property tax bills. 5. The amortization period for paying back funds to the District would be 10 years with no interest penalty for early payoff. 6. The CAD would offer financing for the following property owners' costs: share of the sewer main extension design and construction costs, including the portion of a private lateral sewer located in the street. The cost of installing Page 2 of 5 POSITION PAPER Board Meeting Date: January 7, 2016 Subject: CONSIDER THE FORMATION OF A CONTRACTUAL ASSESSMENT DISTRICT (CAD) FOR PROPERTIES ON NORTH JACKSON WAY, JACKSON WAY AND SOUTH JACKSON WAY IN ALAMO FOR INSTALLATION OF SEWER IMPROVEMENTS; ADOPT A RESOLUTION OF INTENTION TO CREATE SOUTH JACKSON WAY CAD NO. 2016-1 AND ADOPT A RESOLUTION TO APPROVE THE BOUNDARY the lateral sewer on a participant's property, abandoning an existing septic tank, and the District capacity fee and other fees are specifically excluded from CAD financing. 7. CAD participants are responsible for the non -participants' share of the costs of the CAD facilities. The District will establish reimbursement fees, which will be collected from non -participant parcels at the time of connection to the public sewer system. The reimbursement fees will be used to first reduce the outstanding assessments of the CAD participants, and any remaining reimbursement fees will be distributed to the CAD participants. CEQA: Staff has concluded that this project is exempt from the California Environmental Quality Act (CEQA) under CEQA Guidelines Section 15061(b)(3), since it can be "seen with certainty that there is no possibility that the activity in question may have a significant adverse effect on the environment". This certainty is based on the District's past experience with numerous sewer construction projects of this nature, the relatively short distance involved, and the impact -limiting nature of the District's construction specifications that would be required of the project. Approval of this project will establish the Board of Directors' independent finding that this project is exempt from CEQA. ALTERNATIVES/CONSIDERATIONS: Reject or defer initiating formation of the CAD. These actions would halt or delay the CAD proceedings. FINANCIAL IMPACTS: There are minor administrative costs for initiating the formation of a CAD. These costs eventually will be paid by the CAD participants if a CAD is actually formed. This action does not establish an interest rate for the CAD financing. li the CAD receives final approval from the Board in the future, the estimated CAD costs are $400,000. Ultimately this money is paid back to the District from CAD participants within 10 years. The current Capital Budget includes $100,000 for CAD projects. The Collection System program currently has $260,000 in the project contingency account. Therefore, the project would require an additional $40,000 of supplemental authorization from the sewer construction fund. Staff's future request for those funds will be made if and when the neighborhood shows sufficient support for a CAD project by signing the CAD contract and the CAD is then brought to the Board for final approval. COMMITTEE RECOMMENDATION: The Board Engineering and Operations Committee recommended approval of this item at its December 9, 2015 meeting. Page 3 of 5 POSITION PAPER Board Meeting Date: January 7, 2016 subject: CONSIDER THE FORMATION OF A CONTRACTUAL ASSESSMENT DISTRICT (CAD) FOR PROPERTIES ON NORTH JACKSON WAY, JACKSON WAY AND SOUTH JACKSON WAY IN ALAMO FOR INSTALLATION OF SEWER IMPROVEMENTS; ADOPT A RESOLUTION OF INTENTION TO CREATE SOUTH JACKSON WAY CAD NO. 2016-1 AND ADOPT A RESOLUTION TO APPROVE THE BOUNDARY RECOMMENDED BOARD ACTION: Authorize formation of a CAD consisting of 22 properties on North Jackson Road, Jackson Road and South Jackson Road in Alamo by: 1. Adopting a resolution of intention to create South Jackson Road CAD No. 2016-1 for the purpose of installing sewer improvements (Exhibit 1); and 2. Adopting a resolution approving the boundary of the assessment district (Exhibit 2). Attached Supporting Document(s): 1. Proposed Boundary Map (Figure 1) 2. Proposed Resolution of Intention (Exhibit 1) 3. Proposed Boundary Resolution (Exhibit 2) Page 4 of 5 ATTACHMENT 1 LOCATION MAP N.T.S. , N 0 300 600 \ V FEET V itD K LEGEND: CAD AREA POTENTIAL SEWER * POTENTIAL PARTICIPANT $ EXISTING SEWER Central contra Costa PROPOSED BOUNDARIES OF Flgure Sanitary District SOUTH JACKSON WAY ' CONTRACTUAL ASSESSMENT DISTRICT 1 NO. 2016-1 Page 5 of 5 EXHIBIT 1 ATTACHMENT 2 RESOLUTION NO. 20110 — 001 A RESOLUTION OF INTENTION BY THE CENTRAL CONTRA COSTA SANITARY DISTRICT TO CREATE SOUTH JACKSON WAY CONTRACTUAL ASSESSMENT DISTRICT NO. 2016-1 FOR THE PURPOSE OF INSTALLING SEWER IMPROVEMENTS WHEREAS, the public health and the environment will be best protected by the expansion of the public sewer system; WHEREAS, the construction and installation of a sanitary sewer pipeline, together with appurtenant work and facilities, in areas not presently connected to the sewer system will facilitate the elimination of potential public health problems due to failing septic systems; and WHEREAS, it would be convenient and advantageous to establish a boundary around an area within which Central Contra Costa Sanitary District (District) and property owners may enter into contractual assessments and make arrangements to finance public improvements to parcels which are developed and where the costs and time delays involved in creating an assessment district pursuant to alternative provisions in the law would be prohibitively large relative to the cost of the improvement. THEREFORE, the Board of Directors of the District (Board) resolves: This Board intends to approve the following improvements under the authority of Chapter 29, Contractual Assessment Districts (CAD), of the Municipal Improvement Act of 1911, as amended, to wit: construction and installation of approximately 1,337 linear feet of sanitary sewer line, together with appurtenant work and facilities located at North Jackson Way, Jackson Way and South Jackson Way in Alamo, California. 2. This Board finds that the parcels within the intended CAD are shown within the boundaries of the map entitled, "Proposed Boundaries of South Jackson Way CAD No. 2016-1." 3. This Board intends to levy a special assessment upon participating parcels within the described district in accordance with the special benefit to be received by each parcel of land, respectively, from the improvements. The improvements proposed will not confer any special benefit upon any publicly owned land. Hence, there shall be omitted from special assessment all public streets, alleys, and places and all land belonging to the United States, the State of California, Contra Costa County, and District now in use in the performance of a public function. 4. The District intends to provide loan financing for the improvements, subject to the availability of funds and any limitation on the commitment or expenditure of funds for the CAD Program as may be established from time to time by the District's Board. Loans shall be repaid by assessments on the property of Resolution No. 2016 - Page 2 of 2 participating parcel owners. Assessments shall be paid over a maximum period of ten (10) years with interest at a rate to be fixed by the District. 5. The procedure for the collection of assessments will be the placement of assessments on participating parcel owners' tax bills. The first assessments may be placed on owners' tax bills in fiscal year 2016-17. 6. This Board appoints Thomas Brightbill, Senior Engineer, as Engineer of Work for this project to prepare the report required by Section 5898.22 of the Streets and Highways Code. 7. A public hearing is expected to be held on this matter before the Board on March 17, 2016 at the District Offices at 5019 Imhoff Place, Martinez, California. This date is tentative and may be modified in the future. 8. The Board independently finds that this project is exempt from the California Environmental Quality Act (CEQA) under CEQA Guidelines Section 15061(b)(3), since it can be "seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment". This certainty is based on the District's past experience with numerous sewer construction projects of this nature, the relatively short distance involved, and the District's impact -limiting construction specifications that would be required of the project. PASSED AND ADOPTED this 7th day of January, 2016, by the Board of Directors of the District by the following votes: AYES: Members: NOES: Members: ABSENT: Members: Tad J. Pilecki 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 ATTACHMENT 3 EXHIBIT 2 RESOLUTION NO. 10W-002' RESOLUTION APPROVING BOUNDARY MAP SOUTH JACKSON WAY CONTRACTUAL ASSESSMENT DISTRICT NO. 2016-1 The Board of Directors (Board) of the Central Contra Costa Sanitary District (District) resolves: A map entitled "Proposed Boundaries of South Jackson Way Contractual Assessment District (CAD) No. 2016-1" has been filed with the Secretary of the District. This Board approves the map and adopts the boundaries shown on the map as describing the extent of the territory included in a proposed assessment district to be known as South Jackson Way CAD No. 2016-1, Central Contra Costa Sanitary District, County of Contra Costa, California. This Board intends to levy a contractual assessment upon participating parcels within the described District in accordance with the benefit to be received by each parcel of land, respectively, from the improvement. There shall be omitted from assessment, all public streets, alleys, and places and all land belonging to the United States, the State of California, Contra Costa County, and the District because it has been determined that no special benefit will be conferred on any such land within the District. This Board finds that the map is in the form and contains the matters prescribed by Section 3110 of the California Streets and Highways Code. This Board directs the Secretary of the District to certify the adoption of this resolution on the face of the map and to file a copy of the map with the County Recorder for placement in the Book of Maps of Assessment and Community Facilities Districts. PASSED AND ADOPTED this 7t" day of January, 2016, by the Board of Directors of the District by the following vote: AYES: Members: NOES: Members: ABSENT: Members: Tad J. Pilecki President of the Board of Directors Central Contra Costa Sanitary District County of Contra Costa, State of California Resolution No. 2016 - Page 2 of 2 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