HomeMy WebLinkAbout07. Approve revisions to Board Policy No. BP 010 - Contractual Assessment Districts Page 1 of 4
Item 7.
CENTRAL SAN BOARD OF DIRECTORS
POSITION PAPER
MEETING DATE: APRIL 21, 2022
SUBJECT: APPROVE REVISIONS TO BOARD POLICY NO. BP 010 - CONTRACTUAL
ASSESSMENT DISTRICTS
SUBMITTED BY: INITIATING DEPARTMENT:
KATIE YOUNG, SECRETARY OF THE SECRETARYOF THE DISTRICT
DISTRICT
Roger S. Bailey Kenton L. Alm
General Manager District Counsel
ISSUE
Changes to Board policies require Board approval. The Board is asked to consider acceptance of a minor
update that would amend the referenced Board Policy.
BACKGROUND
Staff brought before the Administration Committee the aforementioned Board policy for a biennial review.
The Administration Committee recommended a minor revision to the policy. When revisions are
recommended, the Board Policy is brought before the full Board for consideration, which is hereby
attached and shown in a strikeout version.
ALTERNATIVES/CONSIDERATIONS
The Board could choose not to adopt the proposed revisions or provide other direction to staff.
FINANCIAL IMPACTS
None.
April 21, 2022 Regular Board Meeting Agenda Packet- Page 35 of 135
Page 2 of 4
COMMITTEE RECOMMENDATION
The Administration Committee reviewed the proposed changes at its April 12, 2022 meeting and
recommended Board approval.
RECOMMENDED BOARD ACTION
Approve the proposed revisions to Board Policy BP 010 - Contractual Assessment Districts.
Strategic Plan Tie-In
GOAL ONE: Customer and Community
Strategy 1—Deliver high-quality customer service, Strategy 2—Maintain a positive reputation
ATTACHMENTS:
1. Proposed Revisions to BP 010 (strikethrough)
April 21, 2022 Regular Board Meeting Agenda Packet- Page 36 of 135
Page 3 of 4
Number: BP 010
Authority: Board of Directors
Effective: January 7, 1999
Revised: February X2001 September 5, 2AA� p -
V Gtoher 4, 2012, O tober 26, 2ncv��ehF icrn aur�, 201
April 21, 2022
Reviewed: "MarGh 3, 220 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 21, 2022 Regular Board Meeting Agenda Packet- Page 37 of 135
Page 4 of 4
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 21, 2022 Regular Board Meeting Agenda Packet- Page 38 of 135