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HomeMy WebLinkAbout07.a. Conduct public hearing and consider adopting resolutions regarding South Jackson Way Contractual Assessment District (CAD) No. 2016-1 Central Contra Costa Sanitary District 7-a. BOARD OF DIRECTORS AL POSITION PAPER Board Meeting Date: April 7, 2016 Subject: CONDUCT A PUBLIC HEARING; ADOPT A RESOLUTION CONFIRMING COMPLIANCE WITH CALIFORNIA CONSTITUTION, ARTICLE XIIID, SECTION 4; ADOPT A RESOLUTION APPROVING ENGINEER'S REPORT AND ASSESSMENT AND ORDERING IMPROVEMENT AND FINDING THE PROJECT EXEMPT FROM CEQA; AND AUTHORIZE EXECUTION OF AGREEMENT WITH PARCEL OWNERS IN CONJUNCTION WITH THE SOUTH JACKSON WAY CONTRACTUAL ASSESSMENT DISTRICT NO. 2016-1, DISTRICT PROJECT NO. 6602 Submitted By. Initiating Dept./Div.: Russell Leavitt Engineering & Technical Services / Engineering Assistant III Planning & Development Servi s REVIEWED AND RECOMMENDED FOR BOARD ACTION: T. Brightbill—Senior Engineer D. Gemmell—Planning & Development Services Division Mgr. 1 "� w JM. Petit—Director of Engineering &Technical Services Kent Alm Roger S.Bailey Counsel for the District 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 South Jackson Way Contractual Assessment District (CAD) No. 2016-1. BACKGROUND: A group of parcel owners in the South Jackson Way neighborhood of unincorporated Alamo 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 November 5, 2015 meeting (Board Policy No. BP 010 — Contractual Assessment Districts). The CAD Program provides financial assistance to 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 contractual assessment district to finance extension of a sewer main to a neighborhood and connection to the District public sewer system. The South Jackson Way CAD meets all of the criteria for formation of a contractual assessment district. There are 22 properties that could benefit from this CAD project. The Board of Directors adopted a Resolution of Intention to form a contractual assessment district on January 7, 2016. The subject sewer would include approximately 1,187 linear feet of eight-inch sewer main and appurtenant works and facilities that will serve 22 existing properties, all of which have existing homes presently relying on septic tanks. A map showing the proposed boundary and the proposed sewer location is presented as Attachment 1. At the time of approval of the final assessments, a final boundary map of the assessment district will be recorded based on C:\Users\danderson\AppData\Local\Microsoft\Windows\Temporary Internet Files\Content.Outlook\IM9F5ZMU\4-7-16 PH South Jackson CAD Approval.docx Page 1 of 4 POSITION PAPER Board Meeting Date: APRIL 7, 2016 Subject: CONDUCT A PUBLIC HEARING; ADOPT A RESOLUTION CONFIRMING COMPLIANCE WITH CALIFORNIA CONSTITUTION, ARTICLE XIIID, SECTION 4; ADOPT A RESOLUTION APPROVING ENGINEER'S REPORT AND ASSESSMENT AND ORDERING IMPROVEMENT AND FINDING THE PROJECT EXEMPT FROM CEQA; AND AUTHORIZE EXECUTION OF AGREEMENT WITH PARCEL OWNERS IN CONJUNCTION WITH THE SOUTH JACKSON WAY CONTRACTUAL ASSESSMENT DISTRICT NO. 2016-1, DISTRICT PROJECT NO. 6602 the actual number of parcels whose owners execute an assessment contract with the District. An Engineer's Report, which includes an estimate of the total project cost and estimated individual assessments, has been prepared. A summary of project costs is provided in Exhibit 1. On March 3, 2016, the Board of Directors set a public hearing for April 7, 2016. This public hearing, the preparation of the Engineer's Report, and the notification and balloting process conform to the legal requirements for the formation of a voluntary CAD contained in the Streets and Highways Code and those portions of Proposition 218 applicable to voluntary CADs. In order to continue the process for South Jackson Way CAD No. 2016-1, the following actions are necessary: 1. Conduct a public hearing to: a. Consider public testimony on the Resolution of Intention and the Engineer's Report. b. Announce the tabulation of ballots submitted by owners of each affected parcel indicating approval or opposition to the proposed assessment, and 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 XIID, Section 4. b. Resolution approving the Engineer's Report, assessments, and ordering improvement. C:\Users\da nderson\AppData\Local\M icrosoft\Wi ndows\Temporary Internet Files\Content.Outlook\IM9F5ZMU\4-7-16 PH South Jackson CAD Approval(2).docx Page 2 of 4 POSITION PAPER Board Meeting Date: APRIL 7, 2016 Subject: CONDUCT A PUBLIC HEARING; ADOPT A RESOLUTION CONFIRMING COMPLIANCE WITH CALIFORNIA CONSTITUTION, ARTICLE XIIID, SECTION 4; ADOPT A RESOLUTION APPROVING ENGINEER'S REPORT AND ASSESSMENT AND ORDERING IMPROVEMENT AND FINDING THE PROJECT EXEMPT FROM CEQA; AND AUTHORIZE EXECUTION OF AGREEMENT WITH PARCEL OWNERS IN CONJUNCTION WITH THE SOUTH JACKSON WAY CONTRACTUAL ASSESSMENT DISTRICT NO. 2016-1, DISTRICT PROJECT NO. 6602 An agreement between the participating owners and the District is needed to establish the rights and obligations of both parties. District Counsel has prepared such an agreement in which the owners agree to: • assessments being placed on their property bills; • pay the assessments; • accept total 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; • accept total responsibility for the costs associated with the sanitary sewer extension, including interest for District financing; and • have the sanitary sewer extension constructed in accordance with District standards. The District will: • finance the costs of the sanitary sewer extension; • 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; and • be reimbursed in full by receiving payments, including interest, for the total amount financed from owners over a ten-year period. The voluntary nature of the CAD program means that only property owners who choose to participate will have assessments placed on their property. CEQA: Staff has concluded that this project, which is the creation of an assessment district and approval of a sewer extension 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. Approval of this project will establish the Board of Directors' independent finding that this project is exempt from CEQA. C:\Users\dandersonWppData\Local\Microsoft\Windows\Temporary Internet Files\Content.Outlook\IM9F5ZMU\4-7-16 PH South Jackson CAD Approval(2).docx Page 3 of 4 POSITION PAPER Board Meeting Date: APRIL 7, 2016 Subject' CONDUCT A PUBLIC HEARING; ADOPT A RESOLUTION CONFIRMING COMPLIANCE WITH CALIFORNIA CONSTITUTION, ARTICLE XIIID, SECTION 4; ADOPT A RESOLUTION APPROVING ENGINEER'S REPORT AND ASSESSMENT AND ORDERING IMPROVEMENT AND FINDING THE PROJECT EXEMPT FROM CEQA; AND AUTHORIZE EXECUTION OF AGREEMENT WITH PARCEL OWNERS IN CONJUNCTION WITH THE SOUTH JACKSON WAY CONTRACTUAL ASSESSMENT DISTRICT NO. 2016-1, DISTRICT PROJECT NO. 6602 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. FINANCIAL IMPACTS: The estimated total sewer main extension project cost is $333,867. This money will be paid back to the District from CAD participants within 10 years. The fiscal year 2015-16 Capital Budget includes $100,000 for CAD projects. The Collection System program currently has $260,000 in the contingency account to cover the remaining $233,867 of the project cost. COMMITTEE RECOMMENDATION: On December 9, 2015, the Board Engineering and Operations Committee recommended approval of the Resolution of Intent for this CAD. RECOMMENDED BOARD ACTION: Conduct a public hearing. If less than a majority of returned ballots from affected parcel owners oppose the assessment, staff recommends that the Board of Directors take the following actions: • Find that the project is exempt from CEQA. • Adopt a resolution confirming compliance with California Constitution, Article XIIID, Section 4. • Adopt a resolution approving the Engineer's Report, assessments, and ordering Improvement. • Authorize the General Manager to execute an agreement with the South Jackson Way CAD No. 2016-1 participants. Attached Supportinq Document(s): 1. Approved Boundaries of South Jackson Way Contractual Assessment District No. 2016-1 (Figure 1) 2. Summary of Sewer Main Extension and Other Costs That Could Be Financed Under South Jackson Way CAD No. 2106-1 (Exhibit 1) 3. Proposed Resolution Confirming Compliance with California Constitution, Article XIID, Section 4, South Jackson Way Contractual Assessment District No. 2016.1 (Exhibit 2) 4. Proposed Resolution Approving Engineer's Report and Assessment and Ordering Improvement, South Jackson Way Contractual Assessment District No. 2016.1 (Exhibit 3) C:\Users\dandersonWppData\Local\Microsoft\Windows\Temporary Internet Files\Content.Outlook\IM9F5ZMU\4-7-16 PH South Jackson CAD Approval(2).docx Page 4 of 4 ATTACHMENT 1 \ ew / D WALNU Po REEK 'z4 S \ SITE sroN 1 YA�fY 1 B RD -w a w 4 " DANVILLE N LOCATION MAP N.T.S. 4 * p w P y w * V M w a IN /\ `d 0 300 em a FEET E LEGEND: CAD AREA nummu POTENTIAL SEWER = 7k POTENTIAL PARTICIPANT FJOSTING y' SEWER Central Contra Costa APPROVED BOUNDARIES OF FIGURE r Sanitary District SOUTH JACKSON WAY ' CONTRACTUAL ASSESSMENT DISTRICT NO. 2016-1 EXHIBIT 1 ATTACHMENT 2 SUMMARY OF SEWER MAIN EXTENSION AND OTHER COSTS THAT COULD BE FINANCED UNDER SOUTH JACKSON WAY CAD NO. 2016-1 Construction — Sewer main extension $260,987 Engineering 50,880 District Services 22,000 TOTAL $333,867 Based on these costs, the project cost per parcel (with 22 parcels participating) would be $15,176. If financed for 10 years at 6.00% per annum on the property tax roll, the annual assessment would be $2,040. EXHIBIT 2 ATTACHMENT 3 RESOLUTION NO. 2016 - 012- RESOLUTION CONFIRMING COMPLIANCE WITH CALIFORNIA CONSTITUTION, ARTICLE XIIID, SECTION 4 SOUTH JACKSON WAY CONTRACTUAL ASSESSMENT DISTRICT NO. 2016-1 The Board of Directors of the Central Contra Costa Sanitary District resolves: 1. The Board set 2 PM on April 7, 2016, 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. 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 the District, which notice contained a ballot whereby each owner could indicate support or opposition to the proposed assessment. 3. At the time and place for which notice was given, the Board of Directors 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. 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 April 2016, by the Board of Directors of the Central Contra Costa Sanitary 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 EXHIBIT 3 ATTACHMENT 4 RESOLUTION NO. 2016 -0/ 3 RESOLUTION APPROVING ENGINEER'S REPORT AND ASSESSMENT AND ORDERING IMPROVEMENT SOUTH JACKSON WAY CONTRACTUAL ASSESSMENT DISTRICT NO. 2016-1 The Board of Directors (Board) of the Central Contra Costa Sanitary District (District) resolves: This Board has taken a series of actions preliminary to ordering the improvement in the South Jackson Way Contractual Assessment District (CAD) No. 2016-1, Central Contra Costa Sanitary 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 Thomas Brightbill, Senior Engineer, 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 1,187 linear feet of sanitary sewer line, together with appurtenant work and facilities located at North Jackson Way, Jackson Way, Linden Ct. and South Jackson Way, Alamo, California. 3. After completion of construction of the improvements, the District shall levy a contractual assessment upon participating parcels within the described South Jackson Way Contractual Assessment District No. 2016-1 in accordance with the CAD 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 South Jackson Way Contractual Assessment District No. 2016-1. 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 CAD, the improvements and the extent of the CAD. Resolution No. 2016 — 4!3 South Jackson Way CAD No. 2016-1 Page 2 of 3 6. The Board further finds that the total value of the ballots submitted opposing the proposed CAD did not exceed the value of the ballots submitted in favor of the CAD and therefore a majority protest does not exist. 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. Number Document or Event Date or Action a. Resolution of Intention 1/7/2016 2016-001 b. Resolution Approving Boundary Map 1/7/2016 2016-002 c. Boundary Map Filed with County Recorder pending -- e. Affidavit of Publication of Notice of Improvement 1/21/2016 -- 8. The Board approves the Engineer's Report and each component part of it, including each exhibit incorporated by reference in the report. 9. The Board finds that 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 CAD 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 Board orders the improvement described in paragraph 2 and as detailed in the Engineer's Report. 11. According to Section 10603 of the Streets and Highways Code, the Board designates the Finance Administrator to collect and receive payment of the assessments. 12. 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. 2016 - 013 South Jackson Way CAD No. 2016-1 Page 3 of 3 PASSED AND ADOPTED this 7th day of April 2016, by the Board of Directors of the Central Contra Costa Sanitary 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