HomeMy WebLinkAbout05.(Handout) Resolution No. 2023-023_Revised5.(Handout)
Attachment 5
RESOLUTION NO. 2023-023
A RESOLUTION OF THE CENTRAL CONTRA COSTA SANITARY DISTRICT
TO ESTABLISH A NEW THREE-YEAR LATERAL REPLACEMENT FINANCING
PROGRAM EFFECTIVE AUGUST 3, 2023
WHEREAS, Central Contra Costa Sanitary District (Central San) has, over the last
several years, identified a prevalent sanitation issue being the need to manage and
control inflow and infiltration into Central San’s wastewater collection system; and
WHEREAS, it is generally accepted that aging or defective side sewers and laterals can be significant sources of infiltration; and
WHEREAS, reducing infiltration and thereby reducing wastewater flows has benefits in both the collection system and at the treatment plant; and
WHEREAS, the cost and complexity of repairing or replacing a lateral or side sewer can
be expensive enough to prevent a property owner from undertaking the work, thus
perpetuating an ongoing health and environmental problem; and
WHEREAS, a lateral replacement financing program would further Central San's mission to protect public health and the environment by encouraging replacement of
defective sewer laterals within its boundaries; and
WHEREAS, staff has analyzed the setup and administration costs for such a program, including direct costs, staff labor, overhead and interest; and
WHEREAS, the Board of Directors finds that it is necessary to assess administrative
charges to those customers who participate in the program for recovery of costs.
NOW, THEREFORE, BE IT RESOLVED by the Board of Directors of the Central Contra Costa Sanitary District (Central San) as follows:
THAT a three-year pilot Lateral Replacement Financing Program for encouraging property owners to replace defective sewer laterals is hereby approved; and
THAT staff is directed to implement the pilot Lateral Replacement Financing Program
for a three-year period effective August 3, 2023, under the following conditions:
1.Both residential and non-residential properties shall be eligible to participate inthe program; and2.The project must be for the complete replacement of the sewer lateral or
separation of a shared lateral. Projects for spot repairs are not eligible; and
3.As a condition of participation in the program, the property owner must execute apromissory note and enter into a recordable Memorandum of Agreement; and4.If a property owner elects to participate in the program, the fees that wouldotherwise be due at the time of Central San's issuance of a permit to replace a
sewer lateral, including application and inspection fees, will be financed by
Central San over a 15-year period at the interest rate established for existing
Central Contra Costa Sanitary District Resolution No. 2023-23
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financing programs in the Schedule of Environmental and Development-Related Rates and Charges; and 5. Construction costs for sewer lateral repair or replacement may also be financed by Central San over a 15-year period at the interest rate established for existing
financing programs in the Schedule of Environmental and Development-Related
Rates and Charges; and 6. Annual installment payments due under the Lateral Replacement Financing Program shall be collected on the Contra Costa County Property Tax Roll; and 7. The Board of Directors hereby delegates responsibility for executing and
recording program documents to the General Manager or his designee; and
8. The Board of Directors shall receive an update on the Lateral Replacement Financing Program one year after the pilot program commences to consider whether to remove or raise the per-parcel caps of $12,500 for single-family residential parcels (4-inch connection) and $25,000 for multi-family residential
and non-residential parcels (6-inch connection).
9. Unless extended by the Board of Directors, the Lateral Replacement Financing Program will terminate on August 3, 2026. BE IT FURTHER RESOLVED THAT the Board of Directors finds that the application
fees for participation in existing financing programs included in the current Schedule of
Environmental and Development-Related Rates and Charges are appropriate and reasonable administrative charges for recovery of Central San's program costs; and THAT the Board of Directors finds that this action is categorically exempt from the
California Environmental Quality Act (CEQA) pursuant to 15061(b)(3) of Central San's
CEQA Guidelines, in that the program activity is covered by the commonsense exemption that CEQA applies only to projects which have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the
environment, the activity is not subject to CEQA. This certainly comes from the limited
environmental disturbance produced by a sewer connection and the impact-limiting features of Central San’s Standard Specifications. PASSED AND ADOPTED this 3rd day of August 2023 by the Board of Directors of
Central San by the following vote:
AYES: Members: NOES: Members: ABSENT: Members:
Barbara D. Hockett President of the Board of Directors
Central Contra Costa Sanitary District
County of Contra Costa, State of California
Central Contra Costa Sanitary District Resolution No. 2023-23
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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