HomeMy WebLinkAbout04.a. Review draft Position Paper to consider adopting two proposed resolutions to initiate the formation of the Houston Court Area CAD No. 2022-1 in Danville Page 1 of 10
Item 4.a.
CENTRAL SAN BOARD OF DIRECTORS
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POSITION PAPER
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DRAFT
MEETING DATE: JUNE 22, 2022
SUBJECT: REVIEW DRAFT POSITION PAPER TO CONSIDER ADOPTING
(1) RESOLUTION OF INTENTION NO. 2022- TO INITIATE THE
FORMATION OF THE HOUSTON COURT AREA CONTRACTUAL
ASSESSMENT DISTRICT (CAD) NO. 2022-1 FOR THE PURPOSE OF
INSTALLING SEWER IMPROVEMENTS ON QUI NTERRA LANE IN
DANVILLE, AND (2) RESOLUTION NO. 2022- APPROVING THE
BOUNDARY FOR THE PROPOSED CAD
SUBMITTED BY: INITIATING DEPARTMENT:
RUSSELL LEAVITT, ENGINEERING ENGINEERING AND TECHNICAL SERVICES-
ASSISTANT III PDS-DEVELOPMENT SERVICES-MAINLINE
REVI EW
REVIEWED BY: STEPHANIE GRONLUND, ASSOCIATE ENGINEER
DANA LAWSON, SENIOR ENGINEER
DANEA GEMMELL, PLANNING AND DEVELOPMENT SERVICES DIVISION
MANAGER
JEAN-MARC PETIT, DIRECTOR OF ENGINEERING AND TECHNICAL
SERVICES
ISSUE
Approval of a Resolution of Intention by the Board of Directors is required as the first step in the formation
of a CAD.
BACKGROUND
Owners of properties on Houston Court and Estates Drive in Danville have expressed an interest in
forming a CAD in order to design and construct an extension of the public sewer system to serve their
properties. The location and boundary of the proposed CAD is shown on Attachment 1. Though the
approximately 520 linear feet sewer main extension is located on Quinterra Lane, the majority of the
neighbors reside on Houston Court.
June 22, 2022 EOPS Regular Committee Meeting Agenda Packet- Page 4 of 27
Page 2 of 10
The CAD Formation Process
The following Board actions are required to create a CAD:
• First Board Meeting — The Board of Directors passes a Resolution of Intention to form the CAD
and approves a CAD boundary map.
Following the passage of the Resolution of Intention, the participating property owners work with their
Engineer to complete improvement plans and secure bids to construct the project.
Central San staff prepares an Engineer's Report. Staff also prepares and mails notices and ballots
to owners of all parcels which can connect to the project. Under State Law, the CAD is a voluntary
agreement which is not subject to Proposition 218; Central San's policy and procedure is to follow
the notification and balloting process described in Proposition 218 to the extent possible.
• Second Board Meeting —A public hearing is held to receive input and comments. Following the
public hearing, ballots are tabulated. If there is sufficient property owner support, the Board of
Directors may approve the Engineer's Report, approve the assessments, and order the construction
of the improvements.
Following the order to construct the improvements, the participating property owners retain a
contractor to construct the sewer improvements.
Central San inspects the construction of the sewer improvements to confirm that the construction
conforms to Central San's Standards and Specifications.
• Third Board Meeting — The Board of Directors approves the final assessment amounts and the
levy of the assessments.
Key Features of the CAD Program
The following are key features of the CAD program:
1. The CAD program creates voluntary assessment districts based on a contractual assessment
process. Participating property owners sign a contract with Central San agreeing to pay back funds
initially provided by Central San to cover the design and construction of the infrastructure.
2. The source of funds to cover the assessment district costs are ad valorem tax revenues which are
deposited each year in Central San's Sewer Construction Fund.
3. Central San's assessment district formation criteria include the requirement of at least three
properties directly tributary to a proposed CAD facility; a minimum of 60% of those properties having
existing homes served by septic tank systems; no more than two dwellings per Participant Parcel;
and persons owning multiple parcels may finance only one parcel through the CAD. This proposed
CAD has four properties that would be directly tributary properties, all homes are on septic and no
property has more than two dwellings, and no persons own more than one parcel. The proposed
CAD, therefore, complies with all of the terms set forth in the revised Board Policy 010,
Contractual Assessment Districts, approved at the September 21, 2022 Board of Directors
meeting.
4. The obligation to pay assessments are recorded as a lien against the property. Participants are
given the option to pay off their assessment within one month of the assessment being set or are
allowed to amortize the debt through payments on their property tax bills.
June 22, 2022 EOPS Regular Committee Meeting Agenda Packet- Page 5 of 27
Page 3 of 10
5. The amortization period for paying back funds to Central San is 10 years with no interest penalty for
early payoff.
6. The CAD offers financing for the property owners'share of the sewer main extension design and
construction costs, including the portion of a private lateral sewer located in the street. Other
connection costs excluded from CAD financing are included in the Septic to Sewer financing
program, such as the cost of installing the lateral sewer on a participant's property, abandoning an
existing septic tank, and Central San's capacity fee and other fees.
7. CAD participants are responsible for the non-participants'share of the costs of the CAD facilities.
Central San will establish reimbursement fees, which will be collected from non-participant parcels at
the time of connection to the public sewer system. The reimbursement fees will be used to first
reduce the outstanding assessments of the CAD participants, and any remaining reimbursement
fees will be distributed to the CAD participants.
California Environmental Quality Act
Staff has concluded that this project is exempt from the California Environmental Quality Act (CEQA)
under 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 Central San's past experience with numerous sewer construction projects of this
nature, the relatively short distance involved, and the impact-limiting nature of Central San's construction
specifications that would be required of the project. Approval of this project will establish the Board of
Directors' independent finding that this project is exempt from CEQA.
ALTERNATIVES/CONSIDERATIONS
Reject or defer initiating formation of the CAD. These actions would halt or delay the CAD proceedings.
FINANCIAL IMPACTS
The CAD program is structured so that the design and construction costs are all paid by the property
owners. There are minor administrative costs for initiating the formation of a CAD. These costs eventually
will be paid by the CAD participants if a CAD is actually formed.
The estimated total cost for this CAD is $200,000. Staff believes that adequate funding exists within the
existing Fiscal Year (FY) 2022-23 Capital Improvement Budget.
A new District Project will be created upon approval of the Resolution of Intention for this CAD.
Construction costs will be included in the FY 2022-23 Budget. Upon property owner approval, the
engineer's estimate of proposed construction costs will be submitted to the Board of Directors for
approval.
COMMITTEE RECOMMENDATION
The Engineering and Operations Committee reviewed this item at its June 22, 2022 meeting and
recommended
June 22, 2022 EOPS Regular Committee Meeting Agenda Packet- Page 6 of 27
Page 4 of 10
RECOMMENDED BOARD ACTION
Authorize formation of a CAD consisting of four properties on Houston Court and Estates Drive in Danville
by:
1. Adopting a Resolution of Intention to create Houston Court Area CAD No. 2022-1 for the purpose
of installing sewer improvements (Attachment 2); and
2. Adopting a resolution approving the boundary of the assessment district (Attachment 3).
Strategic Plan re-In
GOAL ONE: Customer and Community
Strategy 1—Deliver high-quality customer service, Strategy 2—Maintain a positive reputation
ATTACHMENTS:
1. Proposed CAD Boundary Map
2. Proposed Resolution to Initiate Formation
3. Proposed Resolution Approving Boundary Map
June 22, 2022 EOPS Regular Committee Meeting Agenda Packet- Page 7 of 27
Page 5 of 10
Proposed Boundary of Houston Ct. Area
Contractual Assessment District No. 2022-1 Map Date:6/3/2022
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Central San data as of June,2022. Feet California State Plane,Zone III RIPS 0403,US Feet
June 22, 2022 EOPS Regular Committee Meeting Agenda Packet- Page 8 of 27
Page 6 of 10
ATTACHMENT 2
RESOLUTION NO.
A RESOLUTION OF INTENTION
BY THE CENTRAL CONTRA COSTA SANITARY DISTRICT
TO CREATE HOUSTON COURT AREA CONTRACTUAL ASSESSMENT DISTRICT
NO. 2022-1 FOR THE PURPOSE OF INSTALLING SEWER IMPROVEMENTS
WHEREAS, the public health and the environment will be best protected by the expansion of the
public sewer system;
WHEREAS, the construction and installation of a sanitary sewer pipeline, together with
appurtenant work and facilities, in areas not presently connected to the sewer system will
facilitate the elimination of potential public health problems due to failing septic systems;
WHEREAS, it would be convenient and advantageous to establish a boundary around an area
within which Central Contra Costa Sanitary District (Central San) and property owners may enter
into contractual assessments and make arrangements to finance public improvements to parcels
which are developed and where the costs and time delays involved in creating an assessment
district pursuant to alternative provisions in the law would be prohibitively large relative to the
cost of the improvement.
THEREFORE, the Board resolves:
1. This Board intends to approve the following improvements under the authority of
Chapter 29, Contractual Assessment Districts, of the Municipal Improvement Act of
1911, as amended, to wit: construction and installation of approximately 520 linear feet
of sanitary sewer line, together with appurtenant work and facilities located at Quinterra
Lane in Danville, California.
2. This Board finds that the parcels within the intended CAD are shown within the
boundaries of the map entitled, "Proposed Boundaries of Houston Court Area CAD No.
2022-1."
3. This Board intends to levy a special assessment upon participating parcels within the
described CAD in accordance with the special benefit to be received by each parcel of
land, respectively, from the improvements. The improvements proposed will not confer
any special benefit upon any publicly owned land. Hence, there shall be omitted from
special assessment all public streets, alleys, and places and all land belonging to the
United States, the State of California, Contra Costa County, and Central San now in use
in the performance of a public function.
4. Central San intends to provide loan financing for the improvements, subject to the
availability of funds and any limitation on the commitment or expenditure of funds for the
CAD Program as may be established from time to time by the Board. Loans shall be
June 22, 2022 EOPS Regular Committee Meeting Agenda Packet- Page 9 of 27
Page 7 of 10
Central Contra Costa Sanitary District
Resolution No. 2022-
Page 2 of 3
repaid by assessments on the property of participating parcel owners.
Assessments shall be paid over a maximum period of ten (10) years with interest at a rate to
be fixed by Central San.
5. The procedure for the collection of assessments will be the placement of assessments on
participating parcel owners' tax bills. The first assessments may be placed on owners'
tax bills in fiscal year 2023-24.
6. This Board appoints Stephanie Gronlund, Associate Engineer, as Engineer of Work for
this project to prepare the report required by Section 5898.22 of the Streets and
Highways Code.
7. A public hearing is expected to be held on this matter before the Board on October 6,
2022 at Central San's Offices at 5019 Imhoff Place, Martinez, California. This date is
tentative and may be modified in the future.
8. The Board independently finds that this project is exempt from the California
Environmental Quality Act (CEQA) under 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 effect on the environment". This certainty is based on
Central San's past experience with numerous sewer construction projects of this
nature, the relatively short distance involved, and Central San's impact-limiting
construction specifications that would be required of the project.
PASSED AND ADOPTED this 7th day of July, 2022, by the Board of Directors of Central San by
the following votes:
AYES: Members:
NOES: Members:
ABSENT: Members:
David R. Williams
President of the Board of Directors
Central Contra Costa Sanitary District
County of Contra Costa, State of California
June 22, 2022 EOPS Regular Committee Meeting Agenda Packet- Page 10 of 27
Page 8 of 10
Central Contra Costa Sanitary District
Resolution No. 2022-
Page 3 of 3
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
June 22, 2022 EOPS Regular Committee Meeting Agenda Packet- Page 11 of 27
Page 9 of 10
ATTACHMENT 3
RESOLUTION NO.
RESOLUTION APPROVING BOUNDARY MAP
HOUSTON COURT AREA CONTRACTUAL ASSESSMENT DISTRICT
NO. 2022-1
The Board of Directors (Board) of the Central Contra Costa Sanitary District (Central San)
resolves:
A map entitled "Proposed Boundaries of Houston Court Area Contractual Assessment District
(CAD) No. 2022-1" has been filed with the Secretary of the District.
This Board approves the map and adopts the boundaries shown on the map as describing the
extent of the territory included in a proposed assessment district to be known as Houston Court
Area CAD No. 2022-1, Central Contra Costa Sanitary District, County of Contra Costa,
California.
This Board intends to levy a contractual assessment upon participating parcels within the
described CAD in accordance with the benefit to be received by each parcel of land,
respectively, from the improvement. There shall be omitted from assessment, all public streets,
alleys, and places and all land belonging to the United States, the State of California, Contra
Costa County, and Central San because it has been determined that no special benefit will be
conferred on any such land within Central San.
This Board finds that the map is in the form and contains the matters prescribed by Section
3110 of the California Streets and Highways Code.
This Board directs the Secretary of the District to certify the adoption of this resolution on the
face of the map and to file a copy of the map with the County Recorder for placement in the
Book of Maps of Assessment and Community Facilities Districts.
PASSED AND ADOPTED this 7t" day of July, 2022, the Board of Directors of Central San by the
following vote:
AYES : Members:
NOES: Members
ABSENT : Members:
David R. Williams
President of the Board of Directors Central
Contra Costa Sanitary District
County of Contra Costa, State of California
June 22, 2022 EOPS Regular Committee Meeting Agenda Packet- Page 12 of 27
Page 10 of 10
Central Contra Costa Sanitary District
Resolution No. 2022-
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
June 22, 2022 EOPS Regular Committee Meeting Agenda Packet- Page 13 of 27