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Home My WebLink About09. Public hearing to approve Harper Lane Area CAD in Danville Page 1 of 15 Item 9. CENTRAL SAN CENTRAL SAN BOARD OF DIRECTORS POSITION PAPER MEETING DATE: OCTOBER 4, 2018 SUBJECT: CONDUCTA PUBLIC HEARING TO CONSIDER APPROVAL OF THE HARPER LANE AREA CONTRACTUAL ASSESSMENT DISTRICT (CAD) NO. 2018-1 IN DANVILLE, DISTRICT PROJECT 6534; ADOPT RESOLUTION NO. 2018-029 CONFIRMING COMPLIANCE WITH CALIFORNIA CONSTITUTION, ARTICLE XI I I D, SECTION 4 (PROPOSITION 218); ADOPT RESOLUTION NO. 2018-030APPROVI NG THE ENGINEER'S REPORT AND ASSESSMENTS, ORDERING IMPROVEMENT, AND FINDING THE PROJECT EXEMPT FROM THE CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA); AUTHORIZE THE GENERAL MANAGER TO EXECUTE AN AGREEMENT WITH THE HARPER LANE AREA CAD NO. 2018-1 PARTICIPANTS; APPROVE A CONTINGENCY PROJECT IN THE AMOUNT OF $800,000 FOR THE CAD; AND AUTHORIZE THE GENERAL MANAGER TO TRANSFER $800,000 WITHIN THE CAPITAL IMPROVEMENT BUDGET (CIB) SUBMITTED BY: INITIATING DEPARTMENT: RUSSELL LEAVITT, ENGINEERING ENGINEERING AND TECHNICAL SERVICES- ASSISTANT I I I PDS-RATES AND FEES REVIEWED BY: THOMAS BRIGHTBILL, SENIOR ENGINEER DANEA GEMMELL, PLANNING AND DEVELOPMENT SERVICES DIVISION MANAGER JEAN-MARC PETIT, DIRECTOR OF ENGINEERINGAND TECHNICAL SERVICES Roger S. Bailey General Manager October 4, 2018 Regular Board Meeting Agenda Packet- Page 93 of 265 Page 2 of 15 ISSUE State law and District Code require that 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 Harper Lane Area CAD No. 2018-1. BACKGROUND A group of parcel owners in the Harper Lane area in Danville have requested that Central San 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 CAD to finance extension of a sewer main to a neighborhood and connection to Central San's public sewer system. The Harper Lane Area CAD meets all of the criteria for formation of a CAD. There are 34 properties that could benefit from this CAD project. The Board of Directors adopted a Resolution of Intention to form a CAD on March 1, 2018. The subject sewer would include approximately 2,775 linear feet of eight-inch sewer main and appurtenant works and facilities that will serve 34 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. 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 September 6, 2018, the Board of Directors set a public hearing for October 4, 2018. 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 Harper Lane Area CAD No. 2018-1, the following actions are necessary: 1. Conduct a public hearing to: • Consider public testimony on the Resolution of Intention and the Engineer's Report. • Announce the tabulation of ballots submitted by owners of each affected parcel indicating approval or opposition to the proposed assessment. 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: • Resolution confirming compliance with California Constitution, Article XIID, Section 4. • Resolution approving the Engineer's Report, assessments, and ordering improvement. An agreement between the participating owners and Central San 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; October 4, 2018 Regular Board Meeting Agenda Packet- Page 94 of 265 Page 3 of 15 • accept total responsibility for the costs associated with the sanitary sewer extension, including interest for Central San financing; and • have the sanitary sewer extension constructed in accordance with Central San's standards. Central San 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 10-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 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. 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 total estimated cost for this contingency project is $800,000, which includes $43,000 for staff time, $661,300 for construction costs, and $ 95,700 in contingency. This money will be paid back to Central San from CAD participants within 10 years. To fund this contingency project, staff plans to transfer up to the total project costs from the following three District Projects (DP): 1. Outfall Improvements, Phase 7, DP 7353 ($300,000 available) 2. Applied Research, DP 7315 ($300,000 available) 3. Collection System Sewer Renovation, DP 8451 ($200,000 available) The Outfall Improvement project is currently in the planning stage and filing for regulatory permits, and construction has been rescheduled to FY 2020 due to several ongoing treatment plant projects. The remaining Outfall project funds are adequate for the permit process. The Applied Research project will be associated with the pilot work under the Energy Recovery and Blower Replacement project, focused on the aeration basin technologies. The Collection System Sewer Renovation project is a program that funds design and construction for sewer renovation work. Four separate projects have been created under this program including Lafayette 13, South Orinda 7, Walnut Creek 13, and Danville 3.The remaining funds in the program are reserved for construction activities this fiscal year. Accordingly, funds will need to be restored to the project budgets from other sources, majority of funds will be needed in Fiscal Year (FY) 2019-20. October 4, 2018 Regular Board Meeting Agenda Packet- Page 95 of 265 Page 4 of 15 Financial Impact Table: Amount Funds budgeted this FY 2018-19 for this project $0 Funds taken from current FY 2018-19 C I B contingency $0 Funds transferred from current FY 2017-18 projects: a. Updated forecast; estimated savings from projects available $800,000 b. Potential future year budget impact (May be mitigated through (1) savings from close-outs of current year projects; 2) reprioritizing future year projects; (3) cost savings on future year projects.) Total Current Year Cost: $800,000 COMMITTEE RECOMMENDATION This matter has not been reviewed by a Board Committee. 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 Harper Lane Area CAD No. 2018-1 participants. • Approve a contingency project for$800,000 for the Harper Lane Area Contractual Assessment District No. 2018-1, District Project 6534; and • Authorize the General Manager to transfer$800,000 within the Capital Improvement Budget. Stratedc Plan Tie-In GOAL ONE: Provide Exceptional Customer Service Strategy 1 - Build external customer relationships and awareness, Strategy 3- Maintain a strong reputation in the community ATTACHMENTS: 1.Approved Boundaries of Harper Lane Area CAD (Exhibit A) 2. Exhibit 1 - Summary of Sewer Main Extension and Other Costs 3. Exhibit 2 - Resolution Confirming Compliance with California Constitution 4. Exhibit 3 - Resolution Approving Engineer's Report and Assessment and Ordering Improvement 5. Presentation October 4, 2018 Regular Board Meeting Agenda Packet- Page 96 of 265 Page 5 of 15 ATTACHMENT 1 4A� �Sr DAWLLE LOCAPON MAP Id_T.S. t� s� C 3g0 32�� 2�y� 3g2 6 3� \O * %7>< 2 4$ 6QO 35* 339 69 60 31* G9 69p6d, 2 � \\6'0 97 9 6' f16 i U 0 0 200 4w f 'y FEET J LEGEND: CAD AREA PROPOSED SEWER POTENTIAL PARTICIPANT EXISTING SEWER # ADDRESS .q Central Contra Costa APPROVED BOUNDARIES OF EXHIBIT Sanitary District HARPER LANE AREA CONTRACTUAL ASSESSMENT DISTRICT A NO. 2018-1 October 4, 2018 Regular Board Meeting Agenda Packet- Page 97 of 265 Page 6 of 15 ATTACHMENT 2 EXHIBIT 1 SUMMARY OF SEWER MAIN EXTENSION AND OTHER COSTS THAT COULD BE FINANCED UNDER HARPER LANE AREA CAD NO. 2018-1 Construction -Sewer main extension and paving $719,915 Engineering 19,800 Central San Services 42,820 TOTAL $782,535 Based on these costs the project cost per parcel (with 34 parcels participating) would be $23,016. If financed for 10 years at 6.00% biannually on the property tax roll, the annual assessment would be $3,094.08. October 4, 2018 Regular Board Meeting Agenda Packet- Page 98 of 265 Page 7 of 15 ATTACHMENT 3 EXHIBIT 2 RESOLUTION NO. 2018-029 RESOLUTION CONFIRMING COMPLIANCE WITH CALIFORNIA CONSTITUTION, ARTICLE XIIID, SECTION 4 HARPER LANE AREA CONTRACTUAL ASSESSMENT DISTRICT NO. 2018-1 The Board of Directors of the Central Contra Costa Sanitary District (Central San) resolves: 1. The Board set 1 :30PM on October 4, 2018, 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 Central San, 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 4t" day of October, 2018, by the Board of Directors of Central San 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 October 4, 2018 Regular Board Meeting Agenda Packet- Page 99 of 265 Page 8 of 15 Resolution No. 2018-029 Central Contra Costa Sanitary District Page 2 of 2 COUNTERSIGNED: Katie Young 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 October 4, 2018 Regular Board Meeting Agenda Packet- Page 100 of 265 Page 9 of 15 ATTACHMENT 4 EXHIBIT 3 RESOLUTION NO. 2018-030 RESOLUTION APPROVING ENGINEER'S REPORT AND ASSESSMENT AND ORDERING IMPROVEMENT HARPER LANE AREA CONTRACTUAL ASSESSMENT DISTRICT NO. 2018-1 The Board of Directors (Board) of the Central Contra Costa Sanitary District (Central San) resolves: This Board has taken a series of actions preliminary to ordering the improvement in the Harper Lane Area Contractual Assessment District (CAD) No. 2018-1 , Central San, 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 2,775 linear feet of sanitary sewer line, together with appurtenant work and facilities located along Harper Lane, Bradford Place, Harmony Ct., Pixie Lane and Terry Lane in Danville, California. 3. After completion of construction of the improvements, Central San shall levy a contractual assessment upon participating parcels within the described Harper Lane Area CAD No. 2018-1 in accordance with the CAD Policy, and with the benefit received by each parcel of land, respectively, from the improvement. 4. The Board called a hearing on the South Jackson Way CAD 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 October 4, 2018 Regular Board Meeting Agenda Packet- Page 101 of 265 Page 10 of 15 Resolution No. 2018-030 Central Contra Costa Sanitary District Page 2of3 improvements and the extent of the CAD. 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 Central San except as otherwise noted. Document or Event Date Number or Action a. Resolution of Intention 3/1/2018 2018-004 b. Resolution Approving Boundary Map 3/1/2018 2018-005 c. Affidavit of Publication of Notice of Improvement 9/13/2018 -- 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. October 4, 2018 Regular Board Meeting Agenda Packet- Page 102 of 265 Page 11 of 15 Resolution No. 2018-030 Central Contra Costa Sanitary District Page 3 of 3 PASSED AND ADOPTED this 4th day of October, 2018, by the Board of Directors of Central San 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: Katie Young 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 October 4, 2018 Regular Board Meeting Agenda Packet- Page 103 of 265 Page 12 of 15 Attachment 5 PROPOSED HARPER LANE AREA CONTRACTUAL ASSESSMENT DISTRICT NO. 2018-1 Board Meeting _vOctober 4, 2018 Russ Leavitt Engineering Assistant III CAD APPROVAL STEPS 1. March 2018: Board initiated formation of Harper Lane Area CAD in Danville. 2. Late July 2018: an Engineer's Report was distributed for public review. 3. Public review of Engineer's Report; neighborhood meeting held. 4. Board will consider approving formation of CAD, the project and election; and ordering the improvement. 5. Board sets the final assessments when improvements are completed. CENTRALSAN 1 1 October 4, 2018 Regular Board Meeting Agenda Packet- Page 104 of 265 Page 13 of 15 CAD BOUNDARY MAP ` s f A d 1 +. l + AWES$ btu APPROVED EOUNOARIES 41 ERURAii MRPER UNE AAM ` CONiRAc A-ES—ENTp CT A NO.tA,F1 CENTRALSAN 3 .. PROPOSED HARPER LANE AREA CAD MAIN SEWER EXTENSION 1 . Potential New Connections: 34 homes 2. Scope: Approximately 2,775 feet of 8-inch diameter gravity sewer and street reconstruction 3. Project cost: $782,535 4. Estimated CAD costs for 34 participants: $23,016 5. Estimated CAD costs for 22 participants: $35,570 2 October 4, 2018 Regular Board Meeting Agenda Packet- Page 105 of 265 Page 14 of 15 COSTS INELIGIBLE FOR CAD FINANCING Fee estimates based on fees in effect as of July 1, 2018 and are subject to change. Additional capacity fees are charged if a parcel contains a second living unit. Estimate Estimate Item (low) (high) Notes Central San Capacity Fees $6,700 $6,700 May be financed at$901/year for 10 years through Central San Other Central San Fees 1,500 2,000 Permit application, inspections, etc. Sewer lateral construction 4,000 10,000 Varies based on length and site conditions Septic tank abandonment 1,500 2,500 Contractor costs plus county fees Subtotal $13,700 $21,200 per parcel - ` 5 Z. CENTRALSAN PROPOSED HARPER LANE AREA CAD IS COST NEUTRAL 1 . Property Owner either pay at end of construction or finance their share of CAD costs. 2. Interest at 6% APR generates approximately $260,000 if all are financed over 10 years. 3. Thus far, 22 of the 34 properties (65%) have signed the Funding Agreement to participate in the CAD. 4. Up to $800,000 in available funds for FY 2018-19 has been identified from three existing projects. 3 October 4, 2018 Regular Board Meeting Agenda Packet- Page 106 of 265 Page 15 of 15 HARPER LANE AREA CAD PROPOSITION 218 BALLOT TABULATION 1 . The lack of a majority protest of the ballots cast is necessary if the CAD is to be formed. 2. 25 of the 34 eligible property owners submitted votes. 1. Yes: 21 votes 2. No: 0 votes 3. ABSTAINED: 4 3. Therefore, there is a lack of a protest and the CAD may be formed. 1 STAFF RECOMMENDATION 1. Conduct a public hearing. 2. Approve formation for the proposed Harper Lane Area CAD No. 2018-1. 3. Find that the project is exempt from CEQA. 4. Adopt two resolutions. 5. Authorize the General Manager to execute an agreement with the Harper Lane Area CAD participants. 6. Approve a contingency project for $800,000 for the Harper Lane Area CAD, District Project 6534; and 7. Authorize the General Manager to transfer $800,000 within the Capital Improvement Budget. 4 October 4, 2018 Regular Board Meeting Agenda Packet- Page 107 of 265