HomeMy WebLinkAbout04.b. Review draft Position Paper to conduct a public hearing to consider approval of the Houston Court Area Contractual Assessment District (CAD) No. 2022-1 in Danville, District Project 6745;Page 1 of 47
Item 4.b.
CDr EENI RAL SAN BOARD OF •'
�J POSITION PAPER
CENTRAL CONTRA COSTA SANITARY DISTRICT �
� •
MEETING DATE: DECEMBER 7, 2022
SUBJECT: REVIEW DRAFT POSITION PAPER TO CONDUCTA PUBLIC HEARING TO
CONS DER APPROVAL OF THE HOUSTON COURT AREA CONTRACTUAL
ASSESSMENT DISTRICT (CAD) NO. 2022-1 IN DANVILLE, DISTRICT
PROJECT 6745; AND
• ADOPTA RESOLUTION CONFIRMING COMPLIANCE WITH
CALIFORNIA CONSTITUTION, ARTICLE XIIID, SECTION 4
(PROPOSITION 218);
• ADOPT RESOLUTIONAPPROVING THE ENGINEER'S REPORT,
ASSESSMENTS, INTEREST RATE AND FINANCING PERIOD TO BE
CHARGED ON FINANCED ASSESSMENTS, ORDERING
IMPROVEMENT; AND
• AUTHORIZE THE GENERAL MANAGER TO EXECUTE AN
AGREEMENT WITH HOUSTON COURTAREA CAD NO. 2022-1
PARTICIPANTS
SUBMITTED BY: INITIATING DEPARTMENT:
RUSSELL LEAVITT, ENGINEERING ENGINEERING AND TECHNICAL SERVICES -
ASSISTANT III PDS-DEVELOPMENT SERVICES -MAINLINE
REVI EW
REVIEWED BY: DANEA GEMMELL, PLANNING AND DEVELOPMENT SERVICES DIVISION
MANAGER
ISSUE
State law and District code require that a public hearing must be conducted to consider objections and
inquiries regarding the proposed assessment, the Resolution of Intention, the Engineer's Report, and any
other comments regarding Houston Court Area CAD No. 2022-1.
BACKGROUND
A group of parcel owners on Houston Court in Danville have requested that Central San form a CAD for
the purpose of financing a public sewer system that would benefit their properties. The Board of Directors
(Board) approved an updated CAD policy at the February 1, 2018 meeting (Board Policy No. BP 010
- Contractual Assessment Districts). The CAD Program provides financial assistance to property owners
so that they may extend the public sewer system to serve their properties. The project being considered
for approval by the Board is the creation of a CAD to finance the extension of a sewer main to a
neighborhood and connection to Central San's public sewer system.
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The Houston Court Area CAD meets all of the criteria for formation of a CAD.
There are four properties that could benefit from this CAD project. The Board adopted a Resolution of
I ntention to form a CAD on J my 7, 2022. The subject sewer would include approximately 636 linear feet of
eight -inch sewer main and appurtenant works and facilities that will serve four existing properties, all of
which have existing homes presently relying on septic tanks. A map showing the proposed boundary and
the proposed sewer location is presented as Attachment 1.
An Engineer's Report, which includes an estimate of the total project cost and estimated individual
assessments, has been prepared and is included as Attachment 2. A summary of project costs eligible for
CAD financing is provided in Attachment 3.
On February 18, 2021, the Board approved a septic to sewer (S2S) financing program which can cover
the other costs necessary to complete connection to the sewer for the participating properties. These
include capacity fees, permit, inspection fees and construction costs for the lateral and septic tank
abandonment. These costs would also be eligible for financing under the S2S program.
On December 15, 2022, the Board set a public hearing for January 19, 2023. This public hearing, the
preparation of the Engineer's Report, and the notification and balloting process conform to the legal
requirements for the formation of a voluntary CAD contained in the Streets and Highways Code and those
portions of Proposition 218 applicable to voluntary CADs.
In order to continue the process for Houston Court Area CAD No. 2022-1, the following actions are
necessary:
1. Conduct a public hearing to:
• Consider public testimony on the Resolution of Intention and the Engineer's Report.
• Announce the tabulation of ballots submitted by owners of each affected parcel indicating
approval or opposition to the proposed assessment.
2. If, at the close of the hearing, the Board finds that the ballot opposition is insufficient, the following
resolutions may be considered and adopted:
• Resolution confirming compliance with California Constitution, Article XIID, Section 4.
• Resolution approving the Engineer's Report, assessments, and ordering improvements.
An agreement between the participating owners and Central San is needed to establish the rights and
obligations of both parties. District Counsel has prepared such an agreement in which the owners agree to
allow:
• Assessments being placed on their property tax bills; pay the assessments;
• Accept total responsibility for the design and construction of the sanitary sewer extension; require the
contractor who is selected by the owners to maintain certain insurance coverage; accept total
responsibility for the costs associated with the sanitary sewer extension, including interest for Central
San financing; and
• Have the sanitary sewer extension constructed in accordance with Central San's standards.
Central San will:
• Finance the costs of the sanitary sewer extension utilizing CAD financing and lateral construction
costs utilizing the existing S2S financing program;
• Accept the work of the contractor, provided the work is done in accordance with Central San's
standards;
• Give owners an opportunity to pay off their assessments upfront or amortize their assessments on
owners' property tax bills;
• Record as liens on the participants' properties the obligation of each participant to pay assessments;
and
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Be reimbursed in full by receiving payments, including interest, for the total amount financed from
owners over a 10 year period.
The voluntary nature of the CAD program means that only property owners who choose to participate will
have assessments placed on their property. These assessments may be paid in full, without interest, within
a month of being established or may be financed with interest on the County property tax bill for up to 10
years. As previously set by the Board, the interest rate is 2.61 percent for FY2022-23 and is updated
annually.
The project has both a high total cost and cost per property due to several factors: 1) engineering
complications were discovered during the project design (e.g., conflicting, large diameter EBMUD water
lines), resulting in the need to prepare several design alternatives; 2) the number of potential new
connectors in the area was limited due to the presence of an elementary school on one side of the street,
that took the place of what could have been at least four more residential lots along the pipeline alignment;
and 3) the presence of other, nearby houses that were able to connect to existing sewer facilities. To date,
only two of four property owners have chosen to participate.
A technique to lower the cost for participants would be to extend the financing period from the standard 10-
year term for CADs. The S2S program allows for 15-year financing but has a lower borrowing ceiling. If
the Board is willing to authorize a greater financing period for this CAD, staff recommends a 20 year term.
The expected annual assessment on $63,000 (full participation) would be lowered from $7,254 to $4,083
by extending the term 10 more years. If only two property owners participate, then the annual assessment would
be lowered from $14,479 to $8,167 for the $126,000 loan. With a lower annual assessment, there could be relief
for the initial two participating property owner and possibly encourage additional participation from the remaining
two property owners as the project is more affordable for participants.
Another way to reduce the cost per parcel, in the short term, would be for Central San to act as a
participant and underwrite the cost of up to two non -participants until such time as they choose to connect,
at which point they would pay a reimbursement to Central San, rather than to the CAD participants. These
policy exceptions have been used with all the Alhambra Valley Assessment Districts (AVADs), as well as
with the 2013 St. Mary's Road CAD in Lafayette. The reimbursement amounts due from non -participants
would be adjusted annually to cover Central San's lost investment opportunity costs until paid. The
reimbursement obligation would not expire, unlike the 20-year expiration of other CADs and private
installer sewers. This CAD lacks the compelling environmental and community circumstances of the
earlier exceptions, except for its high cost. District Counsel discourages use of this option in these
circumstances.
CEQA
At its July 7, 2022 meeting, the Central San Board of Directors independently found 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.
ALTERNATIVES/CONSIDERATIONS
Continuing the public hearing to a later date or taking no Board action would delay the CAD proceedings,
since the holding of a public hearing is required by law.
Due to the high cost per property, the Board could consider the following alternatives:
1. Administer the Houston Court CAD under the currently adopted terms;
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2. Extend the financing period from the standard 10-year term for CADs to at least 20 years;
3. Have Central San act as a participant and underwrite the cost of up to two non -participants until such time
as they choose to connect, at which point they would pay the reimbursement to Central San;
4. Any other direction from the Board.
FINANCIAL IMPACTS
The estimated total sewer main extension project cost is $252,394. Ultimately, this money will be paid
back to Central San from CAD participants within 10 years. The proposed interest rate to be charged,
based on a prior Board decision, will be 2.61 percent. If the Board chooses to extend the financing period
or participate in the project as described above, Central San would recoup its project investment slower,
but the overall project payback could be more successful due to the increased likelihood of eventual
participation by others.
If approved, the Houston Court Area CAD will be established as a separate project in the Capital
Improvement Budget to track costs.
COMMITTEE RECOMMENDATION
The Engineering and Operations Committee reviewed this matter at is December 7, 2022 and
recommended
RECOMMENDED BOARD ACTION
Conduct a public hearing. If less than a majority of returned ballots from affected parcel owners oppose
the assessment, staff recommends that the Board of Directors take the following actions:
• Provide direction on financing alternatives related to the CAD cost per property;
• Adopt a Resolution confirming compliance with California Constitution, Article XIIID, Section 4;
• Adopt a Resolution approving the Engineer's Report, assessments and ordering improvements; and
• Authorize the General Manager to execute an agreement with Houston Court Area CAD No. 2022-1
participants.
Strategic Plan re -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, Strategy 3 - Build neighborhood and industry relations
ATTACHMENTS:
1. Approved Boundaries of Houston Court Area CAD
2. Engineer's Report
3. Summary of Sewer Main Extension and Other Costs
4. Proposed Resolution confirming compliance with California Constitution
5. Proposed Resolution approving Engineer's Report and Assessment and ordering Improvements
6. Presentation
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Approved Boundary of Houston Ct. Area
Contractual Assessment District No. 2022-1 Map Date:10/18/2022
Detail
Area
/ \ Highland Ct
� t \
/ / I
I \
Note: 0 200
Central San data as of October, 2022. P
eet
* Potential Participant
* Existing Sewer Structure
Existing Sewer Main
Potential CAD Sewer Main
4 ` CAD Area
Map Displayed in North American Datum of 1983 (ATTACHMENT
California State Plane, Zone III FIPS O403, US Feet 1
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ATTACHMENT 2
ENGINEER'S REPORT
HOUSTON COURT AREA
CONTRACTUAL ASSESSMENT DISTRICT
CAD No. 2022-1
(DISTRICT PROJECT NO. 6745)
The undersigned respectfully submits the enclosed report as directed by the Board of
Directors.
e�aF
7
a
N0. C53268
By
St6phani, Groniund, PE
r �IViL �P kngineer of Work
PREPARED: October 24, 2022
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ENGINEER'S REPORT
HOUSTON COURT AREA
CONTRACTUAL ASSESSMENT DISTRICT
CAD No. 2022-1
INTRODUCTION
Stephanie Gronlund, Associate Engineer and Engineer of Work(a) for the project known
hereinafter as the Houston Court Area Contractual Assessment District (CAD No. 2022-
1 or the CAD), makes this Engineer's Report, as directed by the Central Contra Costa
Sanitary District (Central San) Board of Directors and pursuant to the provisions of the
Contractual Assessments Chapter of the Municipal Improvement Act of 1911, California
Streets and Highways Code Sections 5898.10 et seq. (the Act).
Contractual assessment districts offer many of the benefits of traditional assessment
districts to property owners with several small but important distinctions. The benefits
include the ability for a group of property owners to collectively fund a larger project,
thereby achieving economies of scale and lowering the cost to each property owner as
well as the ability to finance the improvements over time with annual payments being
placed on property tax bills. The voluntary nature of the program means that the
contractual assessment district is not subject to the requirements of Proposition 218.
Section 5898.31 of the Streets and Highways Code states
Since contractual assessments on real property under this chapter are voluntary
and imposed pursuant to an agreement with an assessed property owner, the
Legislature finds and declares voluntary contractual assessments under this
(a) The Engineer of Work oversees the activities of the CAD and should not to be confused with the
civil engineer hired by the CAD specifically to design CAD facilities.
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chapter are not assessments for the purposes of Articles Xlll C and Xlll D of the
California Constitution and therefore the provisions of Articles Xlll C and Xlll D
and Article 4.6 (commencing with Section 53750) of Chapter 4 of Part 1 of
Division 2 of Title 5 of the Government Code are not applicable to voluntary
contractual assessment districts levied pursuant to this chapter.
SUMMARY OF IMPROVEMENTS
The improvements (Improvements) which are the subject of this report and which may
be financed through the use of the voluntary contractual assessment are briefly
described as follows:
Design and construction of approximately 636 linear feet of 8-inch sanitary
sewer pipeline, together with appurtenant work and facilities located along
Quinnterra Lane and Houston Court. in Danville, California.
There are four, unserved parcels that could directly connect to the Improvements and
are eligible to become part of CAD No. 2022-1. A majority of the parcel owners are
anticipated to participate and be assessed. No publicly owned parcels are located
within the proposed CAD No 2022-1 and, therefore, no publicly owned parcels will be
connected to the Improvements. A map showing the boundary of CAD No. 2022-1, the
location of the Improvements and the parcels that may benefit from the Improvements is
shown in Exhibit A below.
SUMMARY OF COSTS
The total cost of the Improvements, referred to as the "maximum aggregate dollar
amount of contractual assessments" by the Act, is estimated to be $252,094. A
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breakdown of the total cost, including engineering, construction, and Central San costs,
is included as Exhibit B.
Central San will provide the initial funding for the construction of the Improvements from
its Sewer Construction Fund. Each year, Central San's Capital Improvement Budget
allocates funds for voluntary contractual assessment districts such as CAD 2022-1.
APPORTIONMENT OF COSTS
Once the Improvements have been completed and the total cost of the Improvements
and the number of participating property owners are known, the individual assessments
will be calculated for each parcel. Since all parcels in the proposed CAD 2022-1
contain single family residences of similar size, it is reasonable that each parcel
receives similar benefit from the Improvements; therefore, the total cost of the
Improvements will be divided equally among each parcel within the proposed CAD.
Owners who wish to join CAD 2022-1 have two options for payment:
1. Pay all of the assessment up front. Payment is due within 30 days of Central
San's acceptance of the newly constructed sewer improvements and no interest
is charged for this option.
2. Pay the assessment over 10 years including interest charged at a maximum of
2.61 percent per annum. Principal and interest charges will be placed on the
annual property tax bills and Central San will have a statutory and contractual
right to file a lien for any delinquent payments pursuant to Streets and Highway
Section 5898.30. A property owner may finance only one owned parcel within
CAD 2022-1 at any given time under this option.
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CENTRAL SAN POLICIES
Section 5898.22(c) of the Streets and Highways Code requires a statement of polices
concerning contractual assessment districts. On January 7, 1999, Central San adopted
Resolution 99-010, "Contractual Assessment District Policy." The policy set forth a
number of requirements for forming a CAD including a minimum number of parcels, a
minimum percentage of parcels having existing homes served by septic tank systems,
and method for reimbursing CAD participants as other parcels connect to the
Improvements. The policy has been revised and updated several times by the Board of
Directors, most recently on February 1, 2018. The updated policy, now known as
"BP 010 Contractual Assessment Districts", is hereby incorporated by reference and
made a part of this report.
The public official authorized to enter into voluntary contractual assessments on behalf
of Central San is Roger S. Bailey, General Manager.
Section 5898.22 (a)(4) of the Act requires a method for prioritizing requests from
property owners "in the event that requests appear likely to exceed the authorization
amount." Since all costs for the Improvements will be shared among participating
property owners, it is not possible for requests to exceed the authorization amount in
this CAD.
THE CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA)
The design and construction of approximately 636 linear feet of 8-inch sanitary sewer
pipeline, together with the appurtenant work, is an activity that Central San Staff has
concluded is exempt from the California Environmental Quality Act (CEQA) under
CEQA Statute 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 distances involved on lightly -traveled streets
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(while Montair Elementary School is not in session), and Central San's impact -limiting
construction specifications. These specifications are standardized general and special
conditions that are made part of the project bid documents to address environmental
considerations, such as protecting trees and riparian areas, as well as compliance with
applicable federal, state, county, district, municipal and local laws, ordinances, orders,
and regulations. Approval of this project at a public hearing will establish the Board of
Directors' independent finding that this project is exempt from CEQA.
EXHIBITS
This report includes the following exhibits:
A. Approved Boundary Map
B. Cost Estimate
C. Assessment Roll
D. List of Parcel Owner
E. Assessment Numbers
F. Funding and Acquisition Agreement
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Detail
Area
Approved Boundary of Houston Ct. Area
Contractual Assessment District No. 2022-1
Map Date: 1011812022
ss �
nd t't
* Potential Participant
* Existing Sewer Structure
Existing Sewer Main
Potential CAD Sewer Main
CAD Area
M Exhibit A
Npt9: , r M8p Oi5pl and in North Mn aipn Dahlm qt 1 j33 Exhibit
Central San data as of ❑ttotler, 7[]77 11 FHHI California :-4aN Plana, 7ene III FPS pop 3, US Fe t A
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EXHIBIT B
HOUSTON COURT AREA CONTRACTUAL ASSESSMENT DISTRICT
CAD NO. 2022-1; FOUR PARCELS
COST ESTIMATE
SEPTEMBER 2020
ITEM AMOUNT
Construction
636 feet of 8-inch sewer; street laterals (a); manholes, $165,003
repaving
Construction Contingency 15% 24,750
Total Construction Cost $ 189,753
Private Engineering
Survey, Design, Construction Staking $ 38,029
Other Agency 5,000
Engineering/Permit Contingency 10% 1,901
Total Private Engineering Cost $ 44,930
Central San Services
Plan Review $ 4,187
Construction Inspection 14,024
Total Central San Services Cost $ 18,211
TOTAL PROJECT COST $ 252,894
(Construction + Private Engineering + Central San Services)
PROJECT COST PER PARCEL
Based on Four Parcels Participating (b) $ 63,224
(a) Street laterals are provided for initial CAD 2022-1 participants. Since these laterals
benefit only the initial participants, the cost of the laterals is deducted from the
calculation of the reimbursement fee charge to subsequent participants.
(b) The final per -parcel cost is to be determined by actual project cost and number of
participating parcels. Additional costs to property owners not included in the
Improvements include connection fees (paid to Central San), septic tank
abandonment fees (paid to Contra Costa County) and construction costs for a
sewer lateral (paid to a contractor). A separate financing program is available for
these other connection expenses.
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EXHIBIT C
HOUSTON COURT AREA CONTRACTUAL ASSESSMENT DISTRICT
CAD NO. 2022-1 ASSESSMENT ROLL
ANNUAL
ASSESSMENT
ASSESMENT
AMOUNT IF PAID
ASSESSMENT
PARCEL
AMOUNT IF
FOR 10 YEARS ON
NUMBER
DESCRIPTION
PREPAID
TAX ROLL (a)
1
208-082-011-9
$63,224
$7,265.02
2
208-082-002-6
$63,224
$7,265.02
3
308-071-003-7
$63,224
$7,265.02
4
208-071-002-9
$63,224
$7,265.02
Final per -parcel amount will be based on final costs and number of participating parcels
(a) Interest rate of a maximum of 2.61 % per annum, annual payments
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EXHIBIT D
HOUSTON COURT AREA CONTRACTUAL ASSESSMENT DISTRICT
CAD NO. 2022-1
LIST OF PARCEL OWNERS
ASSESS.
NUMBER
APN
NAME
PARCEL
ADDRESS
MAILING
ADDRESS
MAILING CITY
STATE ZIP
1
208-082-011-9
ALLEN & NATALY TIMMONS
310 HOUSTON CT
310 HOUSTON CT
DANVILLE CA 94526
2
208-082-002-6
PETER DONALD JOHNS THE
306 HOUSTON CT
306 HOUSTON CT
DANVILLE CA 94526
3
308-071-003-7
SCOTT & CAROLYN HAMILTON THE
309 HOUSTON CT
309 HOUSTON CT
DANVILLE CA 94526
4
208-071-002-9
DANIEL E OSTERMAN THE &
LORNA S VILLA
325 ESTATES DR
325 ESTATES DR
DANVILLE CA 94526
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` Assessment Numbers for Houston Ct. Area
Contractual Assessment District No. 2022-1
Map Date: 1012412022
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Note:
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Exhibit
E
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EXHIBIT F
HOUSTON COURT AREA
CONTRACTUAL ASSESSMENT DISTRICT NO. 2022-1
FUNDING AND ACQUISITION AGREEMENT
THIS AGREEMENT, dated
, 2022 (the "EFFECTIVE DATE"),
is by and between Central Contra Costa Sanitary District ("CENTRAL SAN"), a sanitary
district established pursuant to Health and Safety Code Section 6400 et seq., and a
political subdivision of the State of California, and the persons who have signed this
Agreement (each an "OWNER" and collectively the "OWNERS"), with respect to
Contractual Assessment District No. 2022-1.
WHEREAS, CENTRAL SAN will establish a contractual assessment district
pursuant to the provisions of the Municipal Improvement Act of 1911, Chapter 29 of the
Streets and Highways Code of California (the "ACT") to facilitate the private construction
of certain sewer improvements and, among other things, the transfer of ownership from
OWNERS to CENTRAL SAN upon completion of the improvements described in Exhibit
F-1 attached hereto and by this reference incorporated herein (the "IMPROVEMENTS");
and
WHEREAS, OWNERS are a group of private property owners, each of whom
holds separate title to certain discrete and individually owned parcels of real property
located within the contractual assessment district and, all of whom are presently utilizing
septic systems to meet their wastewater disposal needs; and
WHEREAS, an agreement is needed between OWNERS and CENTRAL SAN
before CENTRAL SAN proceeds with the contractual assessment district;
NOW, THEREFORE, in consideration of the mutual promises and covenants set
forth herein, and for other valuable consideration, the sufficiency and receipt of which
are hereby acknowledged, the parties hereto agree as follows:
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Section 1. Recitals. Each of the parties hereto represent and warrant,
each to the other, that the above recitals are true and correct.
Section 2. Contractual Assessments.
(a) Assessments will provide reimbursement to CENTRAL SAN.
The financing for the IMPROVEMENTS will be provided by CENTRAL SAN making
payments as described in Section 4(d), from its Sewer Construction Fund and,
subsequently, collecting reimbursements for that financing from each OWNER,
according to each OWNER's calculated share, by placing assessment(s), including
interest charged at a maximum rate of 2.61 percent per annum on the unpaid balance,
on each OWNER's individual property tax bill, over a ten-year period. The first charge
will be placed on each OWNER's property tax bill in the first fiscal year following
CENTRAL SAN' acceptance of the IMPROVEMENTS. The estimated amount of the
assessments for each of the ten years is set forth on the schedule shown in Exhibit F-2,
attached hereto and by this reference incorporated herein. The amount of the
assessments is based upon each OWNER's agreed share of the estimated Project Cost
set forth in Section 4(b) below, plus interest. Said schedule is based on estimated costs
and is subject to change pursuant to Section 4(d)(4) of this AGREEMENT. Final
assessments will be based on actual costs after acceptance of the IMPROVEMENTS
by CENTRAL SAN. Participating public agencies will be assessed but are not eligible
for financing through CENTRAL SAN.
(b) Assessment will be placed on OWNERS' property tax bills.
Each OWNER who does not prepay their assessment in full during the time period
allowed therefore agrees to assessments being placed on their property tax bills
annually for ten years and agrees to pay the assessments so placed. If any individual
OWNER fails to pay said assessment for any fiscal year that OWNER agrees that the
assessment will become a lien against that individual OWNER's real property.
(c) Assessment Prepayment. An OWNER may prepay the balance
of remaining assessments in full at any time during the ten-year payment period. There
will be no prepayment charge or penalty for such prepayment.
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(d) Participants are limited to use of the ten-year annual assessment
payment option for a single, owned parcel. If a person(s) owns two or more parcels
in the same contractual assessment district or different contractual assessment districts,
the person(s) may be a Participant for more than one parcel, but will be eligible for the
annual assessment option for a single parcel only. The assessment for other parcels
must be paid by the prepayment option.
Section 3. OWNERS are Responsible for Construction. OWNERS
agree to construct the IMPROVEMENTS in accordance with this AGREEMENT, and the
improvement plans, and reasonably expect to complete IMPROVEMENTS, and request
payment therefor, pursuant to Section 4 of this AGREEMENT within one (1) year of the .
date of this AGREEMENT.
Section 4. Completion of and Payment for IMPROVEMENTS.
(a) Plans and Specifications and Insurance Requirements.
OWNERS represent that they shall select a civil engineer and have said engineer
prepare plans and specifications for IMPROVEMENTS and that IMPROVEMENTS shall
be constructed by OWNERS in compliance with current CENTRAL SAN standards and
other agency standards applicable to the construction of public improvements and in
compliance with any applicable State or local law or regulation. OWNERS shall select
their general contractors in a manner acceptable to CENTRAL SAN. The
IMPROVEMENTS construction contract shall also expressly provide that standard
mechanics lien provisions set forth in Civil Code Section 8400 et seq. shall apply to the
contract for construction of IMPROVEMENT. Stop Notice provisions as set forth in
California Civil Code Section 9350 et seq. shall not apply to the contract for construction
of IMPROVEMENTS.
(1) All contracts related to the construction of
IMPROVEMENTS, and all change orders thereto, together with the plans and
specifications therefor, shall be submitted to CENTRAL SAN for review and approval of
the cost, and scope of work. CENTRAL SAN will submit to OWNERS a written approval
or denial of any contract or change order (identifying the reasons therefore) within ten
(10) working days after receipt by CENTRAL SAN of the contract or change order. The
decision of CENTRAL SAN will be final.
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(2) All contracts related to the construction of IMPROVEMENTS
shall require OWNERS' contractors to purchase and maintain insurance continuously
during the life of said contract as follows:
(i) The contractor shall furnish OWNERS with certificates
of insurance showing the type, amount, class of operations covered, effective dates and
dates of expiration of policies. OWNERS shall furnish CENTRAL SAN with copies of
said certificates in a form reasonably acceptable to CENTRAL SAN, no later than forty-
eight hours prior to the OWNERS' contractor starting work on the IMPROVEMENTS. All
of the policies of insurance so required to be purchased and maintained (or the
certificates or other evidence thereof) shall expressly provide that such policies shall not
be cancelable or otherwise subject to modification except after thirty (30) days prior written
notice to the parties named as additional insureds in this Agreement (except in the case of
cancellation for nonpayment of premium in which case cancellation shall not take effect
until at least ten (10) days' notice has been given to the parties named as additional
insureds in this Agreement by certified mail). All such insurance shall remain in effect
during the course of the work and at all times thereafter, when the contractor may be
correcting, removing, or replacing defective work. In addition, the insurance required
herein (except for Workers' Compensation and Employer's Liability) shall name the
OWNERS, CENTRAL SAN and their officers, directors, agents and employees as
"additional insureds" under the policies and shall be primary, without right of contribution
from insurance of CENTRAL SAN. Any umbrella liability policy or excess liability policy
shall provide that if the underlying aggregate is exhausted, the excess coverage will drop
down as primary insurance. The limits of insurance maintained by the contractor shall not
limit contractor's liability under said contract.
(ii) Workers' Compensation and Employer's Liability
Insurance: The contractor shall carry Worker's Compensation and Employer's Liability
Insurance having limits not less than those required by state statute (and federal statute, if
applicable) and covering all persons employed in the conduct of the IMPROVEMENTS
work (including the all states endorsement), together with employer's liability insurance
coverage in the amount of at least One Million Dollars ($1,000,000). The contractor shall
require each subcontractor engaged in the IMPROVEMENTS work to provide
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substantially equivalent Workers' Compensation and Employer's Liability Insurance for
its employees
(iii) Commercial General Liability Insurance (Occurrence
Form): The contractor shall carry commercial general liability insurance (occurrence
form) having a combined single limit of not less than One Million Dollars ($1,000,000) per
occurrence and annual aggregate for both bodily injury and property damage, providing
coverage for, among other things, blanket contractual liability, premises,
products/completed operations and personal and advertising injury coverage. The
contractor shall require each subcontractor engaged in the IMPROVEMENTS work to
carry substantially equivalent commercial general liability insurance.
(iv) Automobile Liability Insurance:
The contractor shall carry comprehensive automobile liability insurance having a
combined single limit of not less than One Million Dollars ($1,000,000) per occurrence
and annual aggregate, insuring the OWNERS' contractor against liability for claims
arising out of ownership, maintenance, or use of any owned, hired or non -owned
automobiles. The contractor shall require each subcontractor engaged in the
IMPROVEMENTS work to carry substantially equivalent comprehensive automobile
liability insurance.
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(b) Project Cost.
(1) Determination of Project Cost. Except as hereinafter
provided, the Project Cost to be financed by CENTRAL SAN for the IMPROVEMENTS
shall be determined by CENTRAL SAN and shall not exceed the reasonable cost
thereof, including the reasonable cost of necessary appurtenant works and the costs of
preparing plans and specifications, as well as the construction contracts and all costs of
construction reasonably determined by CENTRAL SAN to be eligible under the ACT to
be part of Project Cost, such as fees and costs incurred in obtaining permits, including
any encroachment permits required by the appropriate jurisdiction Ofor installation of the
IMPROVEMENTS through jurisdiction -owned street, licenses, the costs of change
orders, engineering, and inspection fees and administrative charges constituting a part
of IMPROVEMENTS. Project Cost shall not include costs attributable to OWNERS'
overhead or profit, interest payments owing by OWNERS, or carrying costs for
IMPROVEMENTS prior to its acquisition by CENTRAL SAN, or costs resulting from
extraordinary conditions (such as shortened time for performance) set forth in any
construction contract. As of the EFFECTIVE DATE of this AGREEMENT, OWNERS
and CENTRAL SAN agree the estimated Project Cost is $252,894 (TWO HUNDRED
FIFTY TWO THOUSAND EIGHT NINETY FOUR DOLLARS).
(2) Substantiation. OWNERS shall provide to CENTRAL SAN
all documentation substantiating the cost of IMPROVEMENTS reasonably requested by
DISTRICT.
(c) Inspection and Acceptance.
(1) Inspection; Compliance with Regulations. All components of
IMPROVEMENTS constructed under this AGREEMENT shall be inspected by
CENTRAL SAN, pursuant to CENTRAL SAN's standards and policies. OWNERS shall
provide CENTRAL SAN, prior to CENTRAL SAN's acceptance of any component of
IMPROVEMENTS, with record drawings or similar documents in a form complying with
applicable CENTRAL SAN requirements.
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(2) Acceptance. When fully completed to the reasonable
satisfaction of CENTRAL SAN, IMPROVEMENTS shall be accepted by CENTRAL SAN
in accordance with applicable CENTRAL SAN policy. The documents described in
Section 4(c)(1) of this AGREEMENT shall be delivered to CENTRAL SAN prior to
CENTRAL SAN's acceptance of IMPROVEMENTS. IMPROVEMENTS shall not be
accepted unless ready for use by CENTRAL SAN or the public, based on applicable
CENTRAL SAN standards relating to construction of public improvements. However,
neither CENTRAL SAN, nor any other public agency, shall accept liability, or
responsibility, for any IMPROVEMENTS, or the maintenance thereof, until CENTRAL
SAN has accepted the IMPROVEMENTS pursuant to this Section 4(c)(2). Any
IMPROVEMENTS accepted by CENTRAL SAN shall be subject to a minimum one-year
warranty from date of acceptance by CENTRAL SAN provided by the OWNERS'
contract with their contractor; such guarantee to be assigned to CENTRAL SAN.
(d) Payment of Project Cost.
(1) Completed Improvement. At the time OWNERS request that
CENTRAL SAN accept IMPROVEMENTS, OWNERS also may request in writing, on
the Payment Request (PR) attached hereto as Exhibit F-3 and incorporated by
reference herein, payment of the Project Cost for IMPROVEMENTS from CENTRAL
SAN.
(2) OWNERS may also request in writing that CENTRAL SAN
pay a portion of the cost of work that constitutes less than a complete, discrete portion
of IMPROVEMENTS as listed in Exhibit F-4. OWNER shall submit all supporting
documentation required by CENTRAL SAN to support its payment requests.
(i) Timing; Amount. OWNERS may submit no more than
two (2) PRs per calendar month. Any payment requested, when added to all other
funds previously requested by OWNERS pursuant to a PR, shall not exceed the total
Project Cost for IMPROVEMENTS as estimated pursuant to Section 4(b)(1); provided,
however, that the estimated amounts for portions of the IMPROVEMENTS, are not
intended to be absolute limits on the actual cost of that portion, insofar as any cost
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savings on a particular portion of the IMPROVEMENTS, may, at the option of
CENTRAL SAN and subject to Section 4(b) of this AGREEMENT, be offset against
costs in excess of those set forth in Exhibit F-4 for another portion of the
IMPROVEMENTS. However, the aggregate total Project Cost for the
IMPROVEMENTS shall not exceed the amount set forth in Exhibit F-4, attached hereto
and incorporated herein by this reference, unless the CENTRAL SAN expressly agrees
to such increased cost in writing.
(ii) Documentation. Any PR submitted by OWNERS
shall be properly executed and shall include all supporting documentation required by
CENTRAL SAN. If required by CENTRAL SAN, OWNERS also shall record a Notice of
Completion for the IMPROVEMENTS, and shall demonstrate to CENTRAL SAN that
OWNERS' contractor(s) have provided final unconditional statutory lien releases for
IMPROVEMENTS.
(iii) Review of Payment Request. CENTRAL SAN will
review each new or resubmitted PR and inform OWNERS in writing within ten (10)
working days after receipt thereof of the reasons, if any, for its denial of all, or any
portion, of the funds requested by the PR. OWNERS shall have the right to challenge
the denial by submitting further documentation and/or to resubmit the PR within thirty
(30) days after receipt of the denial. A resubmittal shall not be deemed a new PR for
purposes of Section 4(d)(2)(i) of this AGREEMENT. The decision of CENTRAL SAN
regarding a PR, or any resubmitted PR, shall be final.
(iv) Payment. CENTRAL SAN will pay to OWNERS or to
the OWNERS' contractor the amount approved in the PR within thirty (30) days after
receipt of PR, or resubmittal of a PR, which is not denied by CENTRAL SAN as
provided in Section 4(d)( 2)(iii).
(v) Retention of a Portion of Payment. CENTRAL SAN
will be entitled to retain five percent (5%) of the Project Cost until thirty-five (35) days
after acceptance of IMPROVEMENTS by CENTRAL SAN.
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(3) Portions of IMPROVEMENTS. OWNERS may submit a PR in
accordance with the provisions of Section 4(d)(2) for portions of the IMPROVEMENTS
described in Exhibit F-4.
(4) Payment by CENTRAL SAN for any portion of work does not
constitute acceptance of IMPROVEMENTS or responsibility for maintaining
IMPROVEMENTS until ownership of IMPROVEMENTS is expressly accepted by
CENTRAL SAN. Until CENTRAL SAN expressly accepts the IMPROVEMENTS,
OWNERS retain ownership and shall maintain said IMPROVEMENTS. Under no
circumstance shall payment by CENTRAL SAN for a portion of work be interpreted as
CENTRAL SAN's acceptance of IMPROVEMENTS.
(5) If OWNERS request payment for IMPROVEMENTS or discrete
portions thereof, in an amount less than the budgeted amount as set forth in Exhibit F-4,
for IMPROVEMENTS or any discrete portion thereof, the difference between the
amount requested by OWNERS and the budgeted amount shall, at the option of
CENTRAL SAN, be made available for portions of the IMPROVEMENTS, or discrete
portions thereof. In the event any change of work order has resulted in an additional
cost in excess of the aggregate of the amounts set forth in Exhibit F-4, which increases
the total Project Cost, as approved by the CENTRAL SAN, CENTRAL SAN shall
increase the amount of assessment for each OWNER by a proportionate share of the
amount of the additional cost.
(e) Payment of Excess Costs. OWNERS hereby agree to pay all
costs of IMPROVEMENTS including any costs in excess of the aggregate estimated
amounts set forth in Exhibit F-4 hereto.
(f) Transfer of Ownership of the Improvements. Only the express
acceptance of IMPROVEMENTS by CENTRAL SAN in accordance with Section 4(c)(2)
shall constitute the transfer of ownership of IMPROVEMENTS from OWNERS to
CENTRAL SAN.
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Section 5. Reimbursement to Participants. The OWNERS who have
signed this agreement have indicated that they will participate in the Assessment
District and will be assessed. An owner(s) of a parcel within the boundaries of the
assessment district who declines to participate in the assessment district (a "non-
participating owner") will not be assessed. If, within twenty (20) years from the date
CENTRAL SAN accepts the IMPROVEMENTS, a non -participating owner (or a
subsequent owner of a non -participating owner's property) applies to connect the
property to the IMPROVEMENTS, CENTRAL SAN will collect a reimbursement fee from
that owner prior to issuance of a connection permit. During the ten-year period when
annual assessments are being placed on some OWNERS' county property tax bills,
reimbursement fees collected by CENTRAL SAN will be disbursed as follows: (1) the
portion of collected fees allocable to each OWNER who has prepaid assessments in full
will be disbursed directly to that OWNER; and (2) the portion of collected fees allocable
to each OWNER whose annual assessments are being placed on the county tax bill at
the time of such collection will be applied to the principal balance of unpaid
assessments remaining. The portion of any reimbursement fees collected after the ten-
year assessment period allocable to each OWNER will be disbursed directly to that
OWNER.
If any OWNER agrees to contribute a portion of the total final assessment amount in
excess of the amount applicable to their own property in order to ensure construction of
the IMPROVEMENTS by providing a subsidy to other participating OWNERS, and said
excess contribution has been paid in full and is not subject to further annual
assessments, CENTRAL SAN will disburse the portion of any reimbursement fees
allocable to such excess contribution to that OWNER, whether or not that OWNER
actually owns the parcel on which his/her participation in the CAD was based at the time
the reimbursement fees are collected and disbursed.
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Section 6. Indemnification and Hold Harmless.
(a) INDEMNITY. OWNERs, severally but not jointly, shall hold
harmless, indemnify and defend CENTRAL SAN, its officers, agents and employees
from the liabilities as defined in this section.
(i) The liabilities protected against are any liability or claim for
damage of any kind allegedly suffered, incurred or threatened because of actions
defined below, and including, but not limited to, personal injury, death, property
damage, inverse condemnation, patent and/or copyright infringement, damages arising
out of disputes as to licensing fees or the ownership of any land associated with the
matters covered by this AGREEMENT, any and all damages arising from the imposition
of regulatory fines imposed for the violation of local ordinances, administrative
regulations, or the like, in connection with the work; or any combination of these and
regardless of whether or not such liability, claim or damage was unforeseeable.
(ii) The actions causing liability are any act or omission, whether
active or passive negligence or any non -negligent conduct by indemnitor in connection
with the matters covered by this AGREEMENT and attributed to OWNERS, contractor,
subcontractor, material supplier, or any officer, agent or employee of one or more of
them, including but not limited to, actions related to the construction, testing and
connection of the IMPROVEMENTS and the ownership or use of real property for the
purpose of constructing, testing and connecting the IMPROVEMENTS.
(iii) Non -conditions: The promises and agreements in this
Section are not conditioned or dependent upon whether or not CENTRAL SAN, as
indemnitee, has prepared, supplied, accepted or approved any plan(s) or
specification(s) in connection with this work, or subdivision, or has insurance or other
indemnification covering any of these matters.
(b) No provision of this AGREEMENT shall in any way limit OWNERS'
responsibility for liability, loss, costs, or damages resulting from the operations of
OWNERS, their agents, employees, or its contractors.
Section 7. Annexation. If not already annexed, each owner agrees to
be annexed to CENTRAL SAN. Signature of this agreement will constitute a request for
CENTRAL SAN to proceed with annexation. Upon connection, each OWNER will be
responsible to pay the fees for annexation established by CENTRAL SAN.
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Section 8. Audit. CENTRAL SAN will have the right, upon reasonable
prior notice and during normal business hours, to review OWNERS' books and records
pertaining to costs and expenses incurred by OWNERS in constructing
IMPROVEMENTS. The reasonable costs of any such review shall be borne by
OWNERS.
Section 9. No Relationship to Public Contract. The parties hereto
agree that this AGREEMENT is for the acquisition of IMPROVEMENTS by CENTRAL
SAN and is not, nor is it intended to be, a public construction contract. In performing
this AGREEMENT, each OWNER is an independent contractor and not the agent of
CENTRAL SAN. CENTRAL SAN owes no duty whatsoever to any engineer, architect,
employee, contractor, or subcontractor of OWNERS, or agent of OWNERS.
Section 10. Owners' Obligations. Nothing contained herein shall be
construed as affecting OWNERS' duty to perform its obligations under other
agreements relating to IMPROVEMENTS, all of which obligations are, and shall remain,
independent of OWNERS' rights and obligations under this AGREEMENT.
Section 11. Notices. Any notice, payment, or instrument required or
permitted by this AGREEMENT to be given or delivered to either party shall be deemed
to have been received when personally delivered or within seventy-two (72) hours
following deposit of the same in any United States Post Office in California, postage
prepaid, addressed as follows:
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For OWNERS: Mr. Allen Timmons (OWNERS' Representative)
610 Houston Ct.
Danville, CA 94526
CENTRAL SAN: Central Contra Costa Sanitary District
ATTN: MS. STEPHANIE GRONLUND
5019 Imhoff Place
Martinez, CA 94553
Either party may change its address or addresses for delivery of notice by
delivering written notice of the change of address to the other party.
Section 12. Severability; Governing Law. If any part of this
AGREEMENT is held to be illegal or unenforceable by a court of competent jurisdiction,
the remainder of this AGREEMENT shall be given effect to the fullest extent reasonably
possible. This AGREEMENT shall be governed, and the rights and duties (both
procedural and substantive) of the parties shall be determined, by the laws of the State
of California.
Section 13. Successors and Assigns. This AGREEMENT shall be
binding upon and inure to the benefit of the successors and assigns of the parties
hereto. This AGREEMENT may not be assigned by OWNERS without the prior written
consent of CENTRAL SAN. In connection with any such assignment for which consent
of CENTRAL SAN is required, CENTRAL SAN may condition its consent upon the
acceptability of the financial condition of the proposed assignee and upon any other
factor that CENTRAL SAN deems relevant in the circumstances.
Section 14. Limited Liability of CENTRAL SAN. CENTRAL SAN's
acquisition of IMPROVEMENTS is not backed by the full faith and credit of CENTRAL
SAN, but is limited solely to the funds available to CENTRAL SAN in the contractual
assessment district, if any, as a result of the proceedings for formation of the contractual
assessment district and confirmation of assessments. Any funds committed by
CENTRAL SAN as a contribution, grant, subventions, or otherwise are not available for
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the purposes of this AGREEMENT, unless and until assessments have been confirmed
under proceedings for the contractual assessment district. No Board member, officer,
official, employee, or agent of CENTAL SAN will incur any liability in his or her individual
capacity to OWNERS or any other party by reason of their actions hereunder or
execution hereunder.
Section 15. Waiver. Failure by a party to insist upon the strict
performance of any of the provisions of this AGREEMENT by the other party, or the
failure by a party to exercise its rights upon the default of the other party, shall not
constitute a waiver of the party's right to insist and demand strict compliance thereafter
by the other party with the terms of this AGREEMENT.
Section 16. Merger. This AGREEMENT, together with the Exhibits
hereto, supersedes all prior agreements and representations concerning the subject
matter hereof, whether written or oral, and contains the entire agreement of the parties
respecting the matters covered hereby. No other agreement, statement, or promise
made by any party or any employee, officer, or agent of any party with respect to any
matters covered hereby that are not in writing and signed by all the parties to this
AGREEMENT shall be binding.
Section 17. Parties in Interest. Nothing in this AGREEMENT,
expressed or implied, is intended to or shall be construed to confer upon or to give to
any person or entity, other than CENTRAL SAN and OWNERS, any rights, remedies, or
claims under or by reason of this AGREEMENT or any covenants, conditions, or
stipulations hereof; and all covenants, conditions, promises, and agreements in this
AGREEMENT contained by or on behalf of CENTRAL SAN or OWNERS shall be for
the sole and exclusive benefit of CENTRAL SAN and OWNERS.
Section 18. Attorneys' Fees. The prevailing party in any arbitration or
lawsuit brought to interpret or enforce the terms of this AGREEMENT, or in any claims
whether in contract, tort or otherwise, arising directly or indirectly out of this
AGREEMENT or its performance, shall be entitled to recover its reasonable costs and
attorneys' fees from the other party, and the court or arbitrator shall award such
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attorneys' fees as an element of costs. For purposes of this provision, "prevailing party"
shall include a party which dismisses an action for recovery hereunder in exchange for
payment of the sum allegedly due, performance of covenants allegedly breached, or
consideration substantially equal to the relief sought in the action or proceeding.
"Prevailing party" shall not include any party who refuses an offer of compromise within
ten (10) days of trial or arbitration of the matter, and fails to receive an award more
favorable than the terms and conditions set forth in the offer of compromise, either in
the amount of damages awarded or the type of relief granted.
Section 19. Counterparts. This AGREEMENT may be executed in
counterparts, each of which shall be deemed an original.
Section 20. Amendments. Amendments to this AGREEMENT shall be
made only by written instrument executed by each of the parties hereto.
Section 21. Disclosure. It is the responsibility of each OWNER to notify
a subsequent owner of their property about the existence of this Contractual
Assessment District and that there may be an assessment against the property.
IN WITNESS WHEREOF, the parties have executed this AGREEMENT
as of the EFFECTIVE DATE.
Central Contra Costa Sanitary District
Roger S. Bailey
General Manager
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Owner:
By:
Allen Timmons Nataly Timmons
By:
Peter Donald Johns Tre
By:
Scott Hamilton Tre Carolyn Hamilton Tre
By:
Daniel E Osterman Tre Lorna S Villa
Assessment Parcel No. 1
Assessment Parcel No. 2
Assessment Parcel No. 3
Assessment Parcel No. 4
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EXHIBIT F-1
HOUSTON COURT AREA
CONTRACTUAL ASSESSMENT DISTRICT NO. 2022-1
DESCRIPTION OF THE IMPROVEMENTS
Within the incorporated community of Danville, County of Contra Costa, State of
California, the preparation of plans for and the construction and acquisition of sanitary
sewer improvements to and along Quinnterra Lane and Houston Court, including all
design, surveying, soil and geotechnical engineering, plan check and inspection fees,
and permit acquisition.
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EXHIBIT F-2
HOUSTON COURT AREA
CONTRACTUAL ASSESSMENT DISTRICT NO. 2022-1
SCHEDULE OF ASSESSMENTS
ASSESSMENT PARCEL NOS. 1 THROUGH 4
YEAR
AMOUNT
PER PARCEL (a)
1
$7,265.02
2
$7,265.02
3
$7,265.02
4
$7,265.02
5
$7,265.02
6
$7,265.02
7
$7,265.02
8
$7,265.02
9
$7,265.02
10
$7,265.02
(a) Final amount will be based on final costs, number of participating parcels, ten
annual payments and a maximum interest rate of 2.61 % per annum
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EXHIBIT F-3
HOUSTON COURT AREA
CONTRACTUAL ASSESSMENT DISTRICT NO. 2022-1
PAYMENT REQUEST FOR PROJECT EXPENSES
The undersigned (OWNER) hereby requests payment in the total amount of
$ for IMPROVEMENTS (as defined in the Funding and Acquisition
Agreement, dated as of
) 2022 between CENTRAL SAN, with
respect to Assessment District No. 2022-1, and OWNERS), or for a portion thereof (as
described in Exhibit F-4 of that AGREEMENT) all as more fully described in the
attached contractor's progress payment disbursement requisition. In connection with
this request for payment, the undersigned hereby represents and warrants to DISTRICT
as follows:
1. He (she) is a duly authorized agent of OWNERS, qualified to execute this
request for payment on behalf of OWNERS and knowledgeable as to the matters set
forth herein.
2. All costs of IMPROVEMENTS for which payment is requested hereby are
actual costs and have not been inflated in any respect. The portion of
IMPROVEMENTS for which payment is requested has not been the subject of any prior
payment request submitted to CENTRAL SAN.
3. Supporting documentation (such as third party invoice with lien releases)
is attached with respect to each cost for which payment is requested.
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4. IMPROVEMENTS for which payment is requested were constructed in
accordance with all applicable CENTRAL SAN standards and in accordance with the
project plans and specifications.
5. OWNERS are in compliance with the terms and provisions of the Funding
and Acquisition Agreement referenced above.
Date:
I hereby declare under penalty of perjury that the above representations, and
warranties are true and correct.
OWNERS:
Authorized Representative of the Owners
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December 7, 2022 EOPS Regular Committee Meeting Agenda Packet - Page 54 of 72
Page 37 of 47
EXHIBIT F-4
HOUSTON COURT AREA
CONTRACTUAL ASSESSMENT DISTRICT NO. 2022-1
DISCRETE PORTIONS OF IMPROVEMENT, BUDGETED AMOUNTS,
AND SEQUENCE OF PAYMENT
Plan preparation including private surveying and $ 44,930
engineering, payment of other agency fees, and the
acquisition of all plans, specifications, and reports.
A PR for the work described in the preceding paragraph
may be submitted after the final review for construction is
performed by CENTRAL SAN.
2. Sanitary sewer facilities in Quinnterra Lane and Houston $189,753
Court in Danville, including the acquisition of the facilities.
Five percent (5%) may be retained from Item 2 until
CENTRAL SAN accepts the IMPROVEMENTS.
CENTRAL SAN costs for plan check and inspection (total of $18,211) will be accounted
for internally and remain part of the cost of IMPROVEMENTS.
Budgeted amounts will be adjusted in accordance with final costs.
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December 7, 2022 EOPS Regular Committee Meeting Agenda Packet - Page 55 of 72
Page 38 of 47
ATTACHMENT 3
SUMMARY OF SEWER MAIN EXTENSION AND
OTHER COSTS THAT COULD BE FINANCED UNDER
HOUSTON COURT AREA CAD NO. 2022-1
Construction - Sewer main extension and paving $189,753
Engineering
Central San Services
TOTAL
44,930
18,211
$252,894
Based on these costs, the project cost per parcel (with four parcels participating) would
be $63,224. If financed for 10 years at 2.61 percent annually on the property tax roll, the
annual assessment would be $7,265.02.
December 7, 2022 EOPS Regular Committee Meeting Agenda Packet - Page 56 of 72
Page 39 of 47
ATTACHMENT 4
RESOLUTION NO. 2023-
A RESOLUTION OF THE CENTRAL CONTRA COSTA SANITARY DISTRICT
CONFIRMING COMPLIANCE WITH CALIFORNIA CONSTITUTION, ARTICLE XIIID,
SECTION 4CORDELL DRIVE WEST CONTRACTUAL ASSESSMENT
DISTRICT NO. 2021-1
The Board of Directors of the Central Contra Costa Sanitary District resolves:
The Board set 2:30 PM on January 19, 2023, at the Meeting Room of the Board of
Directors, 5019 Imhoff Place, Martinez, California, as the time and place for a
public hearing pursuant to California Constitution, Article XIIID, Section 4.
2. Pursuant to Article XIIID of the California Constitution, as amended by Proposition
218, commonly known as the "Right to Vote on Taxes Act," notice of the proposed
assessment was provided to all owners of affected parcels within the proposed
assessment district, which contained a ballot whereby each owner could indicate
support or opposition to the proposed assessment.
3. At the time and place for which notice was given, the Board of Directors conducted
a public hearing, pursuant to California Constitution, Article XIIID, Section 4, and
gave every person present an opportunity to comment on and object to the amount
of the proposed assessment.
4. The Board finds that less than a majority of parcel owners who returned ballots,
weighted by financial obligation, opposed the proposed assessment.
PASSED AND ADOPTED this 19 day of January 2023 by the Board of Directors of the
Central Contra Costa Sanitary District by the following votes:
AYES: Members:
NOES: Members:
ABSENT: Members:
President of the Board of Directors
Central Contra Costa Sanitary District
County of Contra Costa, State of California
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
December 7, 2022 EOPS Regular Committee Meeting Agenda Packet - Page 57 of 72
Page 40 of 47
ATTACHMENT 5
RESOLUTION NO. 2022 —
A RESOLUTION OF THE CENTRAL CONTRA COSTA SANITARY DISTRICT
APPROVING THE ENGINEER'S REPORT, ASSESSMENT, AND FINANCING
INTEREST RATE AND TERM, AND ORDERING IMPROVEMENT HOUSTON COURT
AREA CONTRACTUAL ASSESSMENT DISTRICT NO. 2022-1
The Board of Directors (Board) of the Central Contra Costa Sanitary District (Central
San) resolves:
This Board has taken a series of actions preliminary to ordering the improvement in the
Houston Court Area Contractual Assessment District (CAD) No. 2022-1, Central San,
Contra Costa County (County), and now makes the following findings and orders:
The Board adopted a map showing the boundaries of the land potentially
benefited by the proposed improvement.
2. The Board adopted its Resolution of Intention to order the improvement described
therein under the Municipal Improvement Act of 1911, and directed Stephanie
Gronlund, Associate Engineer, as the Engineer of Work for the Assessment
District, to prepare the report required by Section 5989.22 of the Streets and
Highways Code. The improvement is generally described as follows:
Construction and installation of approximately 636 linear feet of
sanitary sewer line, together with appurtenant work and facilities
located along Quinnterra Lane and Houston Court in Danville,
California.
3. After completion of construction of the improvements, Central San shall levy a
contractual assessment upon participating parcels within the described Houston
Court Area CAD No. 2022-1 in accordance with the CAD Policy, and with the
benefit received by each parcel of land, respectively, from the improvement.
4. The Board called a hearing on Houston Court Area CAD No. 2022-1. Notice of the
hearing was given by publication and by mailing to affected parcel owners, all
according to the Municipal Improvement Act of 1911. Affidavits of publication were
filed with the Secretary of the District.
5. At the time and place for which notice was given, the Board conducted a public
hearing pursuant to Section 5898.26 of the Streets and Highways Code, which
included a summary of the Engineer's Report and gave every person present an
opportunity to comment on and object to the proposed CAD, the improvements
and the extent of the CAD.
6. The Board further finds that the total value of the ballots submitted opposing the
proposed CAD did not exceed the value of the ballots submitted in favor of the
CAD and therefore a majority protest does not exist.
7. The documents and events described in paragraphs 1 to 4, inclusive, are stated
here in tabular form, with their dates and, where appropriate, their numbers. All
documents are now on file with Central San except as otherwise noted.
December 7, 2022 EOPS Regular Committee Meeting Agenda Packet - Page 58 of 72
Page 41 of 47
Resolution No. 2021-
Central Contra Costa Sanitary District
Page 2of3
Document or Event
Date
Number or
Action
a. Resolution of Intention
7/7/22
2022-035
b. Resolution Approving Boundary Map
7/7/22
2022-036
c. Affidavit of Publication of Notice of Improvement
DATE
--
8. The Board approves the Engineer's Report and each component part of it,
including each exhibit incorporated by reference in the report.
9. The Board finds that the Engineer of Work in the Engineer's Report has fairly and
properly apportioned the cost of the improvement to each parcel of land in the
CAD in compliance with the agreement between the owners and in proportion to
the special benefits derived by each parcel, in relationship to the entirety of the
capital cost of the improvement. The Board hereby confirms and levies each
individual assessment as stated in the Engineer's Report.
10. The Board confirms an annual interest rate as approved by the Environmental
Fees and Charges schedule, of 2.61 percent for assessments financed for up to
20 years on the County property tax bill.
11. The Board orders the improvement described in paragraph 2 and as detailed in
the Engineer's Report.
12. According to Section 10603 of the Streets and Highways Code, the Board
designates the Finance Manager to collect and receive payment of the
assessments.
PASSED AND ADOPTED this 19t" day of January 2023, by the Board of Directors of
the Central San by the following votes:
AYES:
Members:
NOES:
Members:
ABSENT:
Members:
President of the Board of Directors
Central Contra Costa Sanitary District
County of Contra Costa, State of California
December 7, 2022 EOPS Regular Committee Meeting Agenda Packet - Page 59 of 72
Page 42 of 47
Resolution No. 2021-
Central Contra Costa Sanitary District
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
December 7, 2022 EOPS Regular Committee Meeting Agenda Packet - Page 60 of 72
Page 43 of 47
ATTACHMENT 6
December 7, 2022
+�
409"
Proposed Houston MW10"
Court Area Contractual
Assessment District
No. 2022-1
Engineering & Operations T
Committee Meeting.
Russ Leavitt
Engineering Assistant III
I
CAD Approval Steps
July 2022: Board initiated formation of Houston Court Area
Contractual Assessment District (CAD) in Danville
Early October 2022: an Engineer's Report was distributed
for public review
Today: the Board will consider approving formation of the
CAD, the project and election; and ordering the
improvement
Upon completion of the project, the Board will set the final
assessments
4
December 7, 2022 EOPS Regular Committee Meeting Agenda Packet - Page 61 of 72 1
Page 44 of 47
1 Boundary •
Proposed Cordell Drive West
CAD Main Sewer Extension
Potential New Connections: four homes �►
Scope: approximately 636 feet of eight -inch diameter gravity
sewer and street repaving
Project cost: $252,894
Estimated CAD costs for four properties: $63,224 each
December 7, 2022 EOPS Regular Committee Meeting Agenda Packet - Page 62 of 72 2
Page 45 of 47
Costs Eligible For
Septic To Sewer (S2S) Financing
Fee estimates based on fees in effect as of July 1, 2022 and are subject to change.
Item
Estimate
(low)
Estimate
(high)
Notes
Central San Capacity Fees
$7,200
$7,200
Proposed new Capacity Fee shown;
Current Capacity Fee is $6,803
Other Central San Fees
1,500
2,000
Permit application, inspections, etc.
Sewer lateral construction
4,000
10,000
Varies based on length and site
conditions
Septic tank abandonment
1,500
2,500
Contractor costs plus County fees
Subtotal
$14,200
$21,700
per parcel
Proposed Houston Court Area CAD
Compensates Central San for Project Costs
Participants have signed the Funding Agreements to cover all nine of the CAD's
benefiting properties
Participating property owners either pay their assessment at end of construction or
finance their shares of CAD costs
S2S program can finance remaining costs not covered by CAD financing
Central San will be compensated with 2.61 percent interest by property owners who
finance their assessments for up to 10 years (unless extended by the Board)
To keep the cost per property to its lowest, Central San may decide to participate in the
project with up to two share and receive reimbursement when those properties
participate in the future (not recommended)
December 7, 2022 EOPS Regular Committee Meeting Agenda Packet - Page 63 of 72 3
Page 46 of 47
Cordell Drive West CAD
Proposition 218 Ballot Tabulation
---UPDATE-
The lack of a majority protest of the ballots cast is necessary if the CAD is to be formed
Three of the four eligible property owners submitted votes
Yes: 2 votes
No: 0 votes
Abstained: 1
Therefore, there is a lack of a protest and the CAD may be formed
Staff Recommendation
Conduct a public hearing
Adopt the two resolutions, including consideration for extending the financing period
from 10 years to 20 years
Authorize the General Manager to execute an agreement with the CAD participants
December 7, 2022 EOPS Regular Committee Meeting Agenda Packet - Page 64 of 72 4
Page 47 of 47
December 7, 2022 EOPS Regular Committee Meeting Agenda Packet - Page 65 of 72