HomeMy WebLinkAbout07.a extension of time period for AVAD
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Central Contra Costa Sanitary District
BOARD OF DIRECTORS
POSITION PAPER
Board Meeting Date: July 15, 2010
No.: 7.ia. Engineering
Type of Action: ADOPT A RESOLUTION
Subject: ADOPT A RESOLUTION APPROVING EXTENSION OF THE TIME PERIOD
FOR PROPERTY OWNERS TO PARTICIPATE IN THE ALHAMBRA VALLEY
ASSESSMENT DISTRICT PROGRAM TO JUNE 30, 2015
Submitted By: Initiating DeptJDiv.:
Curtis W. Swanson, Provo Director of Plant Engineering/Environmental Services
Operations
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~ A. ",rrell K.Alm
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General Manager
ISSUE: The Board of Directors must approve changes to the Alhambra Valley
Assessment District (AVA D) Policy.
RECOMMENDATION: Adopt a resolution approving extension of the time period for
property owners to participate in the Alhambra Valley Assessment District (AVAD)
Program to June 30, 2015.
FINANCIAL IMPACTS: Extending the time period will not result in additional cost for
the existing six A V ADs. The time extension to participate in A V ADs will provide an
opportunity for non-participants to become participants and will result in earlier
reimbursement of project costs to CCCSD.
AL TERNA TIVES/CONSIDERA TIONS: The Board could consider a different time
extension, or decide to keep the original time period for participating in an AVAD.
BACKGROUND: On November 2, 2006, the Board of Directors adopted Resolution
No. 2006-117 approving the Alhambra Valley Assessment District (AVAD) Policy. The
policy establishes the criteria for formation of AVAD projects, the process for the AVAD
program, and the methodology for allocating costs and assessments among AVAD
participants. The program uses voluntary Contractual Assessment Districts (CADs) to
extend sewers to residential areas currently served by septic tank systems.
The District has formed six AVADs beginning in 2008. These AVADs consist of the
Trunk Sewer AVAD NO.1 and five AVADs that extended public sewer mains to
neighborhoods in the Alhambra Valley.
N:\ENVRSEC\Position Papers\Swanson\2010\PP Extend AVAD Policy FINAL 7-15-10 .doc
POSITION PAPER
Board Meeting Date: July 15, 2010
Subject. ADOPT A RESOLUTION APPROVING EXTENSION OF THE TIME PERIOD
FOR PROPERTY OWNERS TO PARTICIPATE IN THE ALHAMBRA VALLEY
ASSESSMENT DISTRICT PROGRAM TO JUNE 30, 2015
Under the AVAD Program, CCCSD is initially responsible for the non-participants' share
of the AVAD costs. CCCSD is reimbursed for this cost when the non-participant parcel
owner connects to the sewer system. Under the current policy, AVAD financing is
offered for a limited time. Direct connectors to the Alhambra Valley trunk sewer had
one year from completion to apply for financing, and indirect connectors have three
years to initiate formation of an AVAD to extend sewers to their neighborhoods. The
one-year deadline was in June 2009. The indirect connector deadline will be in
June 2011.
Since the one-year period has passed, staff has received requests from residents to
participate in the Trunk Sewer AVAD. Staff proposes that the period to sign up to be a
participant in an AVAD be extended to June 30,2015, to allow more residents to
participate. The District has already fronted funds for construction of the AVAD sewers
and has covered the costs for non-participants. The original one-year deadline was
proposed by staff to encourage more residents to become A V AD participants sooner.
By extending the time period for AVAD financing, the District would be reimbursed
sooner.
Although property owners would have five years, if approved by the Board, to become
AVAD participants, there is a financial incentive for them to become participants
sooner. Under the AVAD policy, reimbursements to the District are increased annually
to cover the District's carrying or lost investment opportunity costs (i.e., LAIF rate).
Later participants will also pay the current Sewer Capacity Fee instead of the fee that
was in effect at the time of AVAD formation.
The Budget and Finance Committee considered the time extension for becoming a
participant in an AVAD on June 28,2010, and recommends approval.
RECOMMENDED BOARD ACTION: Adopt a resolution approving extension of the
time period for property owners to participate in the Alhambra Valley Assessment
District Program to June 30, 2015.
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RESOLUTION NO. 2010 -
RESOLUTION REVISING THE
ALHAMBRA VALLEY ASSESSMENT DISTRICT POLICY
WHEREAS, the Central Contra Costa Sanitary District (CCCSD) has, over the last several years,
identified a prevalent sanitation issue occurring within Alhambra Valley, south of the city of
Martinez, said issue being the need to replace residential septic systems by connection to
CCCSD's collection system; and
WHEREAS, at its November 7,2006 meeting, CCCSD's Board of Directors adopted Resolution
No. 2006-117 approving the Alhambra Valley Assessment District Policy.
WHEREAS, the Alhambra Valley Assessment District Policy had certain time limits for property
owners to become participants in Alhambra Valley Assessment Districts (AVADs);
WHEREAS, it would be advantageous to both property owners in the Alhambra Valley and to
CCCSD to extend the time period for property owners to become participants in Trunk Sewer
AVAD NO.1 or existing AVADs.
NOW, THEREFORE, the Board of Directors of the Central Contra Costa Sanitary District revises
the Alhambra Valley Assessment District Policy to extend the time period for direct and indirect
connectors to become participants in existing AVADs, as defined in the policy, to June 30,2015.
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