HomeMy WebLinkAbout04.c. Conduct biennial review and approve recommended revisions to Board Policy BP 010 Contractual Assessment Districts Page 1 of 3
Item 4.c.
CENTRAL SAN
Y-109-ITMEN ME
April 12, 2022
TO: ADMINISTRATION COMMITTEE
FROM: KATIE YOUNG, SECRETARYOF THE DISTRICT
REVIEWED BY: DANEA GEMMELL, PLANNING AND DEVELOPMENT SERVICES
MANAGER
KENTON L. ALM, DISTRICT COUNSEL
ROGER S. BAILEY, GENERAL MANAGER
SUBJECT: CONDUCT BIENNIAL REVIEW AND APPROVE RECOMMENDED
REVISIONS TO BOARD POLICY BP 010 - CONTRACTUAL ASSESSMENT
DISTRICTS
Staff has recommended a change to the existing referenced policy, which is being presented for biennial review
and Committee consideration. The changes are reflected in strikeout on the attached copy. The reduction of
the number of parcels, shown on page 2, will match the criteria listed in BP 022 -Alhambra Valley Assessment
District, and may encourage more connections from smaller parcels.
If the Committee concurs, the proposed changes will be brought to the full Board for consideration.
Strategic Plan re-In
GOAL ONE: Customer and Community
Strategy 2—Maintain a positive reputation
GOAL THREE: Fiscal Responsibility
Strategy 2—Ensure integrity and transparency in financial management
ATTACHMENTS:
1. Proposed Revisions to BP 010
April 12, 2022 Special ADMIN Committee Meeting Agenda Packet- Page 27 of 76
Page 2 of 3
Number: BP 010
Authority: Board of Directors
Effective: January 7, 1999
Revised: �February �20-01TSeptember r, 2!v1v(1c' -
Vntober 4, 2012,TOctober 26, 2015, FmebF ord 1, 20T1 g
April 21, 2022
Reviewed: MarGh 3, 2- 29 April 12, 2022 CENTRALSAN
Initiating Dept./Div.: Engineering/Planning &
Development Services
BOARD POLICY
CONTRACTUAL ASSESSMENT DISTRICTS
PURPOSE
To encourage residential property owners to connect to the public sewer system. The
Contractual Assessment District (CAD) program provides financial assistance to small
groups of homeowners, often with inadequate septic tank systems, so that they may
extend the public sewer system to serve their properties. The CAD program is intended
for residential properties, primarily owner-occupied, and not commercial properties.
POLICY
This policy statement establishes the criteria for formation of CAD projects. Nothing in
this policy is intended to bind Central San to continue with the program for any
predetermined time period, nor does it create any right or entitlement in favor of
potential program participants. The Board may consider technical, economic, staffing,
budgetary, environmental and other factors in its consideration of whether to form a
CAD.
FUNDING
CAD proponents are required to hire an engineer and pay the initial engineering costs
for the design of the improvements. Upon approval of the CAD by the Board of
Directors, funding for construction and inspection of the sewer improvements and
reimbursement of reasonable initial engineering costs will be provided by Central San.
This money is repaid by participating property owners, either in a lump sum at the
completion of construction or in 10 annual installments. The annual installments include
a nominal interest rate, are secured by a lien on the property, and are collected on the
property tax bill. Subsequent participants who connect to the sewer main within 20
years repay their share of the CAD costs to the other participants at the time of
connection.
April 12, 2022 Special ADMIN Committee Meeting Agenda Packet- Page 28 of 76
Page 3 of 3
Number: BP 010
CONTRACTUAL ASSESSMENT DISTRICTS POLICY STATEMENT
Page 2 of 2
LEGAL
CADs are formed pursuant to Streets and Highways Code Section 5898, et seq. While
the State Legislature has found that CADs are voluntary, imposed pursuant to an
agreement and are not subject to Proposition 218, Central San will not proceed with a
CAD formation if a majority of ballots, weighted by the proposed assessment, are
submitted in protest of the project.
FORMATION CRITERIA
In order to be eligible for participation in Central San's CAD assessment financing
program, the proposed mainline sewer extension project must meet the following
criteria:
1. A minimum of five- three properties must be directly tributary to the proposed
CAD facilities.
2. A minimum of 60 percent of the properties directly tributary to the proposed CAD
facilities must have existing homes served by septic tank systems.
3. A participant parcel may not have more than two dwellings to participate in
a CAD.
[Original retained by the Secretary of the District]
April 12, 2022 Special ADMIN Committee Meeting Agenda Packet- Page 29 of 76