HomeMy WebLinkAbout05. Adopt a Resolution of Intention and Boundary Map to form the Willow Drive Contractual Assessment District in Danville Page 1 of 10
Item 5.
CENTRAL SAN BOARD OF DIRECTORS
POSITION PAPER
MEETING DATE: AUGUST 18, 2022
SUBJECT: ADOPT (1) RESOLUTION OF INTENTION NO. 2022-059 TO INITIATE THE
FORMATION OF THE WILLOW DRIVE CONTRACTUAL ASSESSMENT
DISTRICT (CAD) NO. 2022-2 FOR THE PURPOSE OF INSTALLING SEWER
IMPROVEMENTS ON WILLOW DRIVE IN DANVILLE, AND (2)
RESOLUTION NO. 2022-060 APPROVING THE BOUNDARY FOR THE
PROPOSED CAD; AND FIND THE PROJECT IS EXEMPT FROM THE
CALIFORNIA ENVIRONMENTAL QUALITYACT
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
Roger S. Bailey Kenton L. Alm
General Manager District Counsel
ISSUE
Approval of a Resolution of Intention by the Board of Directors (Board) is required as the first step in the
formation of a CAD.
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BACKGROUND
Owners of properties on Willow Drive in Danville have expressed an interest in forming a CAD in order to
design and construct an approximately 400-foot gravity extension of the public sewer system to serve their
properties. The location and boundary of the proposed CAD is shown on Attachment 1. The last four
properties on the street, elected not to be included in the CAD boundaries at this time because they would
need to pump.
The CAD Formation Process
The following Board actions are required to create a CAD:
• First Board Meeting — The Board 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 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 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 be 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 seven 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
August 18, 2022 Regular Board Meeting Agenda Packet- Page 35 of 76
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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
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.
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 (CEQA)
Staff has concluded that this project is exempt from 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's 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 $120,000. 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 for approval.
COMMITTEE RECOMMENDATION
The Engineering and Operations Committee reviewed this item at its August 3, 2022 meeting and
recommended approval.
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RECOMMENDED BOARD ACTION
Authorize formation of a CAD consisting of seven properties on Willow Drive in Danville by:
1. Adopting a Resolution of Intention to create Willow Drive CAD No. 2022-2 for the purpose of
installing sewer improvements (Attachment 2);
2. Adopting a resolution approving the boundary of the assessment district (Attachment 3); and
3. Find the project is exempt from CEQA.
Strategic Plan Tie-In
GOAL ONE: Customer and Community
Strategy 1—Deliver high-quality customer service, Strategy 2- Promote initiatives to advance affordable and equitable
access to services
ATTACHMENTS:
1. Proposed CAD Boundary Map
2. Proposed Resolution of Intention to Create CAD
3. Proposed Resolution Approving Boundary Map
August 18, 2022 Regular Board Meeting Agenda Packet- Page 37 of 76
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Proposed Boundary of Willow Dr.
Contractual Assessment District No. 2022-2 Map Date:7/19/2022
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Central San data as of July,2022. Feet California State Plane,Zone III RIPS 0403,US Feet
August 18, 2022 Regular Board Meeting Agenda Packet- Page 38 of 76
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Attachment 2
RESOLUTION NO. 2022-059
A RESOLUTION OF INTENTION
BY THE CENTRAL CONTRA COSTA SANITARY DISTRICT TO CREATE
WILLOW DRIVE CONTRACTUAL ASSESSMENT DISTRICT NO. 2022-2
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; and
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;
and
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 that:
1. Central San 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 400 linear
feet of sanitary sewer line, together with appurtenant work and facilities located at
Willow Drive in Danville, California.
2. Central San finds that the parcels within the intended CAD are shown within the
boundaries of the map entitled, "Proposed Boundaries of Willow Drive CAD No.
2022-2."
3. Central San 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, these
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.
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Page 7 of 10
Central Contra Costa Sanitary District
Resolution No. 2022-059
Page 2 of 3
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 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. The 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 of Directors
on November 17, 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 18th day of August 2022 by 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
August 18, 2022 Regular Board Meeting Agenda Packet- Page 40 of 76
Page 8 of 10
Central Contra Costa Sanitary District
Resolution No. 2022-059
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
August 18, 2022 Regular Board Meeting Agenda Packet- Page 41 of 76
Page 9 of 10
Attachment 3
RESOLUTION NO. 2022-060
A RESOLUTION OF THE CENTRAL CONTRA COSTA SANITARY DISTRICT
APPROVING THE BOUNDARY MAP FOR WILLOW DRIVE
CONTRACTUAL ASSESSMENT DISTRICT NO. 2022-2
BE IT RESOLVED by the Board of Directors of the Central Contra Costa Sanitary District
(Central San) as follows that:
A map entitled "Proposed Boundaries of Willow Drive Area Contractual Assessment
District (CAD) No. 2022-2" has been filed with the Secretary of the District.
Central San 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 Willow Drive CAD No. 2022-2, Central Contra Costa Sanitary District, County of
Contra Costa, California.
Central San 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.
Central San finds that the map is in the form and contains the matters prescribed by
Section 3110 of the California Streets and Highways Code
The Board of Directors 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 Contra Costa County
Recorder for placement in the Book of Maps of Assessment and Community Facilities
Districts.
PASSED AND ADOPTED this 18th day of August 2022 by 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
August 18, 2022 Regular Board Meeting Agenda Packet- Page 42 of 76
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Central Contra Costa Sanitary District
Resolution No. 2022-060
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
August 18, 2022 Regular Board Meeting Agenda Packet- Page 43 of 76