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HomeMy WebLinkAbout04.a Sunnybrook Rd CAD 4.a. Public Hearings PUBLIC HEARING TO RECEIVE COMMENTS ON APPROVAL OF THE SUNNYBROOK ROAD CONTRACTUAL ASSESSMENT DISTRICT NO. 2010-1, DISTRICT PROJECT NO. 6476 SUGGESTED AGENDA July 15, 2010 I. Request staff presentation. II. Public Hearing: A. Receive public comments. B. Request staff response, as appropriate. C. Close Public Hearing. III. Board deliberation of the following actions regarding approval of the Sunnybrook Road Contractual Assessment District No. 2010-1: 1. Find that the project is exempt from CEQA. 2. Adopt a resolution overruling protests. 3. Adopt a resolution confirming compliance with California Constitution, Article XIIID, Section 4. 4. Adopt a resolution approving the Engineer's Report, assessments, and ordering improvement. 5. Authorize a $158,900 allocation from the Collection System Program contingency. 6. Authorize the General Manager to execute an agreement with the Sunnybrook Road owners. N:\ENVRSEC\Position Papers\Mestetsky - Leavitt\Conduct Hearing Agenda - Sunnybrook CAD 7-15-10.doc ~ Central Contra Costa Sanitary District BOARD OF DIRECTORS POSITION PAPER Board Meeting Date: July 15, 2010 No.: 4. a. Public Hearings Type of Action: CONDUCT PUBLIC HEARING Subject. CONDUCT A PUBLIC HEARING; ADOPT A RESOLUTION OVERRULING PROTESTS; 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; AUTHORIZE AN ALLOCATION FROM THE COLLECTION SYSTEM PROGRAM CONTINGENCY, AND AUTHORIZE EXECUTION OF AGREEMENT WITH PARCEL OWNERS IN CONJUNCTION WITH THE SUNNYBROOK ROAD CONTRACTUAL ASSESSMENT DISTRICT NO. 2010-1, DISTRICT PROJECT NO. 6476 Submitted By Sasha Mestetsky, ProVo Senior Engineer REVIEWED AND RECOMMENDED FOR BOARD ACTION: Initiating Dept./Div.: Engineering/Environmental Services ~ ~ c}A? _ [0Jv2( K tfl- c. Swanson A. Farrell K. Aim ISSUE: A public hearing must be conducted to consider objections and inquiries regarding the proposed assessment, the Resolution of Intention, the Engineer's Report, annexation, and any other comments regarding Sunnybrook Road Contractual Assessment District (CAD) No. 2010-1. RECOMMENDATION: Conduct the public hearing, find that the project is exempt from the California Environmental Quality Act (CEQA), authorize an allocation from the Collection System Program contingency, and approve Sunnybrook Road CAD 2010-1, District Project No. 6476. FINANCIAL IMPACTS: The estimated total sewer main extension project cost is $158,900. AL TERNA TIVES/CONSIDERA TIONS: 1. Continue the public hearing to receive additional public comment or allow additional deliberation. 2. Withhold or delay approval of the project. N:\ENVRSEC\Position Papers\Mestetsky - Leavitt\PP Conduct Hearing Sunnybrook FINAL 7-15-1 O.doc Page 1 of 7 POSITION PAPER Board Meeting Date: July 15, 2010 Subject CONDUCT A PUBLIC HEARING; ADOPT A RESOLUTION OVERRULING PROTESTS; 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; AUTHORIZE AN ALLOCATION FROM THE COLLECTION SYSTEM PROGRAM CONTINGENCY, AND AUTHORIZE EXECUTION OF AGREEMENT WITH PARCEL OWNERS IN CONJUNCTION WITH THE SUNNYBROOK ROAD CONTRACTUAL ASSESSMENT DISTRICT NO. 2010-1, DISTRICT PROJECT NO. 6476 BACKGROUND: A group of parcel owners in the Sunnybrook Road 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 February 1,2001 meeting (Resolution 2001-008). This policy amended the CAD Program, which provides financial assistance to District 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 Sunnybrook Road CAD meets all of the criteria for formation of a contractual assessment district. There are 16 properties that could benefit from this CAD project. The Board of Directors adopted a Resolution of Intention to form a contractual assessment district on May 6, 2010. The subject sewer would include approximately 610 linear feet of 8-inch sewer main and appurtenant works and facilities that will serve 16 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 Exhibit 1. At the time of approval of the final assessments, a final boundary map of the assessment district will be recorded based on the actual number of parcels whose owners execute an assessment contract with the District. On May 6, 2010, the Board of Directors adopted a resolution directing the preparation of a report for a contractual assessment district known as Sunnybrook Road CAD No. 2010-1. A report has been prepared, and assessments have been estimated. (The Engineer's Report was provided to the Board under separate cover.) On June 17, 2010, the Board of Directors set a public hearing for July 15. 2010. Since assessments are proposed to be levied on properties, the procedural requirements of Proposition 218 apply, although the final assessment district boundary will include only those parcels whose owners enter into an assessment contract with the District. Compliance with these requirements has been included in the documents and actions proposed for Board consideration. In order to continue the process for Sunnybrook Road CAD No. 2010-1, the following actions are necessary: N:\ENVRSEC\Position Papers\Mestetsky - Leavitt\PP Conduct Hearing Sunnybrook FINAL 7-15-10.doc Page 2 of 7 POSITION PAPER Board Meeting Date: July 15, 2010 Subject CONDUCT A PUBLIC HEARING; ADOPT A RESOLUTION OVERRULING PROTESTS; 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; AUTHORIZE AN ALLOCATION FROM THE COLLECTION SYSTEM PROGRAM CONTINGENCY, AND AUTHORIZE EXECUTION OF AGREEMENT WITH PARCEL OWNERS IN CONJUNCTION WITH THE SUNNYBROOK ROAD CONTRACTUAL ASSESSMENT DISTRICT NO. 2010-1, DISTRICT PROJECT NO. 6476 1. Conduct a public hearing to: a. Announce the tabulation of ballots submitted by owners of each affected parcel indicating approval or opposition to the proposed assessment, and b. Consider public testimony on the Resolution of Intention and the Engineer's Report. 2. If, at the close of the hearing, the Board finds that protests and ballot opposition are insufficient, the following resolutions may be considered and adopted: a. Resolution overruling protests of improvement. b. Resolution confirming compliance with California Constitution, Article XIID, Section 4. c. Resolution approving the Engineer's Report, assessments, and ordering improvement. 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. N:\ENVRSEC\Position Papers\Mestetsky - Leavitt\PP Conduct Hearing Sunnybrook FINAL 7-15-10.doc Page 3 of 7 POSITION PAPER Board Meeting Date: July 15, 2010 Subject CONDUCT A PUBLIC HEARING; ADOPT A RESOLUTION OVERRULING PROTESTS; 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; AUTHORIZE AN ALLOCATION FROM THE COLLECTION SYSTEM PROGRAM CONTINGENCY, AND AUTHORIZE EXECUTION OF AGREEMENT WITH PARCEL OWNERS IN CONJUNCTION WITH THE SUNNYBROO~ ROAD CONTRACTUAL ASSESSMENT DISTRICT NO. 2010-1, DISTRICT PROJECT NO. 6476 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 payoff some or all of their assessments upfront and amortize any remaining 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 estimated cost of the sewer main extension for Sunnybrook Road CAD No. 2010-1 is $158,900. A summary of project costs is shown in Exhibit 2. Funding for the CAD Program is not included in the 2010-2011 Capital Improvement Budget (CIB), so the Board will need to approve a $158,900 allocation from the Collection System Program Contingency. Staff has concluded that this project, which is the creation of assessment district financing, is exempt from the California Environmental Quality Act (CEQA) under District 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 similar sewer construction projects, the developed nature of the project environment, and the limited service area of the project (little potential for growth inducement). Approval of the Engineer's Report will establish the Board of Directors' independent finding that this project is exempt from CEQA. RECOMMENDED BOARD ACTION: If a majority protest is not filed and 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: N:\ENVRSEC\Position Papers\Mestetsky - Leavitt\PP Conduct Hearing Sunnybrook FINAL 7-15-1 a.doc Page 4 of 7 POSITION PAPER Board Meeting Date: July 15, 2010 Subject CONDUCT A PUBLIC HEARING; ADOPT A RESOLUTION OVERRULING PROTESTS; 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; AUTHORIZE AN ALLOCATION FROM THE COLLECTION SYSTEM PROGRAM CONTINGENCY, AND AUTHORIZE EXECUTION OF AGREEMENT WITH PARCEL OWNERS IN CONJUNCTION WITH THE SUNNYBROOK ROAD CONTRACTUAL ASSESSMENT DISTRICT NO. 2010-1, DISTRICT PROJECT NO. 6476 . Conduct a public hearing. . Find that the project is exempt from CEQA. . Adopt a resolution overruling protests. . 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 a $158,900 allocation from the Collection System Program contingency. . Authorize the General Manager to execute an agreement with the Sunnybrook Road parcel owners. N:\ENVRSEC\Position Papers\Mestetsky - Leavitt\PP Conduct Hearing Sunnybrook FINAL 7-15-10.doc Page 5 of7 ~ ~ )7,.L ~ 1 LOCATION MAP N.T.S. % ~ N , o 100 200 LH"'''"","''"''''""''~ FEET LEGEND: I:::J CAD AREA EXISTING SEWER ............ CAD SEWER * POTENTIAL PARTICIPANT '" ... ::: i< Central Contra Costa Sanitary District ~ * g: PROPOSED BOUNDARY SUNNYBROOK ROAD CAD 201G-G1 EXHIBIT 1 N:\ENVRSEC\Position Papers\Mestetsky - Leavitt\PP Conduct Hearing Sunnybrook FINAL 7-15-10.doc Page 6 of 7 EXHIBIT 2 SUMMARY OF SEWER MAIN EXTENSION AND OTHER COSTS THAT COULD BE FINANCED UNDER SUNNYBROOK ROAD CAD NO. 2010-1 Construction - Sewer main extension $135,400 Engineering - Sewer main extension $15,400 District Services - Sewer main extension $8,100 SUBTOTAL - Sewer main extension $158,900 N:\ENVRSEC\Position Papers\Mestetsky - Leavitt\PP Conduct Hearing Sunnybrook FINAL 7-15-10.doc Page 7 of 7 RESOLUTION NO. 2010- RESOLUTION OVERRULING PROTESTS SUNNYBROOK ROAD CONTRACTUAL ASSESSMENT DISTRICT NO. 2010-1 The Board of Directors of the Central Contra Costa Sanitary District resolves: On July 15, 2010, the Board of Directors held a public hearing on the Resolution of Intention and the Engineer's Report on the proposed improvement in Sunnybrook Road Contractual Assessment District No. 2010-1. At or before the time set for hearing, certain interested persons made or may have made protests or objections to the proposed improvement, the extent of the Contractual Assessment District, or the proposed assessment. The Board hereby overrules each of these protests, written or oral. The Board finds that the protest against the proposed improvement (including all written protests not withdrawn in writing before the conclusion of the protest hearing) is made by the owners of less than one half of the area of the land potentially subject to assessments for the improvement. PASSED AND ADOPTED this 15th day of July 2010, by the Board of Directors of the Central Contra Costa Sanitary District by the following votes: AYES: NOES: ABSENT: Members: Members: Members: Michael R. McGill President of the Board of Directors Central Contra Costa Sanitary District County of Contra Costa, State of California COUNTERSIGNED: Elaine R. Boehme Secretary of the Central Contra Costa Sanitary District County of Contra Costa, State of California Approved as to form: Kenton L. Aim Counsel for the District RESOLUTION NO. 2010- RESOLUTION CONFIRMING COMPLIANCE WITH CALIFORNIA CONSTITUTION, ARTICLE XIIID, SECTION 4 SUNNYBROOK ROAD CONTRACTUAL ASSESSMENT DISTRICT NO. 2010-1 The Board of Directors of the Central Contra Costa Sanitary District resolves: 1. The Board set 2 PM on July 15, 2010, 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 15th day of July 2010, by the Board of Directors of the Central Contra Costa Sanitary District by the following votes: AYES: NOES: ABSENT: Members: Members: Members: Michael R. McGill President of the Board of Directors Central Contra Costa Sanitary District County of Contra Costa, State of California COUNTERSIGNED: Elaine R. Boehme Secretary of the Central Contra Costa Sanitary District County of Contra Costa, State of California Approved as to form: Kenton L. Aim Counsel for the District RESOLUTION NO. 2010 - RESOLUTION APPROVING ENGINEER'S REPORT AND ASSESSMENT AND ORDERING IMPROVEMENT SUNNYBROOK ROAD CONTRACTUAL ASSESSMENT DISTRICT NO. 2010-1 The Board of Directors of the Central Contra Costa Sanitary District (Board) resolves: This Board has taken a series of actions preliminary to ordering the improvement in the Sunnybrook Road Contractual Assessment District No. 2010-1, 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 Curtis W. Swanson, Environmental Services Division Manager, 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 610 linear feet of sanitary sewer line, together with appurtenant work and facilities located at Sunnybrook Road in unincorporated Alamo, California. 3. After completion of construction of the improvements, the District shall levy a contractual assessment upon participating parcels within the described Sunnybrook Road Contractual Assessment District No. 2010-1 in accordance with the Contractual Assessment District 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 of protests on the Sunnybrook Road Contractual Assessment District No. 2010-1. 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 of Directors 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 Contractual Assessment District Program improvement and the extent of the Assessment District. Resolution No. 2010 - Sunnybrook CAD No. 2010-1 Page 2 of 3 6. The Board further finds that written protests against the proposed improvement have not been made by owners representing more than one half of the area of the land to be assessed for the improvement. 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 5/6/2010 2010-023 b. Resolution Approving Boundary Map 5/6/2010 2010-024 c. Boundary Map Filed with County Recorder pending -- e. Affidavit of Publication of Notice of Improvement pending -- 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 Assessment District 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 District Controller 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 District 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 similar sewer construction projects, the developed nature of the project environment, and the limited service area of the project (no potential for growth inducement). Resolution No. 2010 - Sunnybrook CAD No. 2010-1 Page 3 of 3 PASSED AND ADOPTED this 15th day of July 2010, by the Board of Directors of the Central Contra Costa Sanitary District by the following votes: AYES: NOES: ABSENT: Members: Members: Members: Michael R. McGill President of the Board of Directors Central Contra Costa Sanitary District County of Contra Costa, State of California COUNTERSIGNED: Elaine R. Boehme Secretary of the Central Contra Costa Sanitary District County of Contra Costa, State of California Approved as to form: Kenton L. Aim Counsel for the District Item No. 4.a Sunnybrook Road Main Sewer Extension Contractual Assessment District No. 2010-1 Sasha Mestetsky July 15, 2010 Sunnybrook Road Main Sewer Extension Map , ~, ~ , , ~~' ~~'` ~ , a, , ~~ , , ~ ~ ~ ~a~ ~ ~= ! V ', .- ~ ~ ~ ~ ~ -~ . ~ ~ ~~, __~' ~ i ; ~ •-- ~, , -~. ~ ~,,x~ , ~ ~ ~ .. •'° ~'~ •~;.~''~,.~. , ,, ~ ~ ~ t `.~~~:;., ~1 .~~\ ... ~ ~ ~\ ~ , ~ ~~ . "; ~\ w p«~°~ , , ~1 . :~ ~ fi ; ~~ `~ ~ ~,,,, m.: \.. - , ~ \ ~ ~~ o ,~.~ __ a~~~ ~ _ ` w ~~ , , ~ 1 Sunnybrook Road Main Sewer Extension • Meets CAD criteria • Benefits 16 properties • 610 feet of 8-inch sewer and 3 MHs • Main Sewer Estimate: $130,000 - $160,000 • Cost per property: $8,000 - $10,000 • Annual Payment: $1,100 - $1,300 Election Results Sunnybrook CAD No. 2010-1 • Approve Assessment: 9 votes • Oppose Assessment: 0 votes 2 Questions? Capacity Fee Deferral - What is past policy? • Industry standard and District past practice is to require payment of capacity fee at time of connection. • For very high demand users, the District and others have allowed payment over time. Currently 15 years at 6% interest used primarily by restaurants. District is protected because fees run with property and will eventually be paid by current tenant. • In case of AVAD's District exception because District funds invested in construction of trunk sewer and wanted to encourage connections.....approximately 50% of connectors have chosen to finance. • Recently the Board requested that staff initiate a fee deferral program due to current economy....it has received limited use. • More recently the Board requested that staff develop a two year payment plan for a capaciry fee delinquency. 3 Capacity Fee Deferral - What is Legal? • Grey area.......assessments should only include costs for public facilities. - Laterals excluded - Capacity fees could be argued • Fee deferral could be separate transaction and not part of assessment to ensure legality. - Billed on tax bill as separate item called fee - Risk of no collection in case of foreclosure Capacity Fee Deferral - What does staff recommend? • Historic practice of cequiring payment at time of connection should be maintained. • CAD's are not unique and do not merit special consideration of fee deferral. • If fee deferral allowed for CAD's there is no rationale for denying it to other residential connectors.....such as the neighbor down the street who is not part of the CAD. • If the Board wishes to encourage septic tank abandonment, then a more rational policy would be to consider financing only for those connectors abandoning septic tanks who have a financial hardship. 4