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HomeMy WebLinkAbout08.a. Formation of CAD in OrindaCentral Contra Costa Sanitary District BOARD OF DIRECTORS ' POSITION PAPER Board Meeting Date: November 18, 2010 Subject: CONSIDER THE FORMATION OF A CONTRACTUAL ASSESSMENT DISTRICT (CAD) FOR INSTALLATION OF SEWER IMPROVEMENTS TO SERVE PROPERTIES ON VISTA DEL ORINDA, TUMBLING BROOK ROAD AND DEL VALLE IN ORINDA; ADOPT RESOLUTIONS OF INTENTION TO CREATE THE VISTA DEL ORINDA CAD NO. 2010 -2 AND FOR APPROVAL OF THE CAD BOUNDARY Submitted By: Initiating DeptJDiv.: Russell Leavitt, Engineering Assistant III Engineering /Environmental Services REVIEWED AND RECOMMENDED FOR BOARD ACTION: Mt- R. Leavitt — Y� J. M' amoto -Mills — ��4- - A. Farrell M kp- - Jame Welly, Genera Manager ISSUE: Owners of properties in the Vista Del Orinda, Tumbling Brook Road and Del Valle area of Orinda are interested in connecting their homes to the Central Contra Costa Sanitary District ( CCCSD) sewer system and have requested formation of a Contractual Assessment District (CAD) to finance an extension of the public sewer system. Board approval is required for a CAD. RECOMMENDATION: Initiate formation of the Vista Del Orinda CAD No. 2010 -2. FINANCIAL IMPACTS: 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. If the CAD receives final approval from the Board in the future, the estimated CAD costs are $194,000. ALTERNATIVES /CONSIDERATIONS: Reject or defer initiating formation of the CAD. These actions would halt or delay the CAD proceedings. BACKGROUND: Owners of properties located on Vista Del Orinda, Tumbling Brook Road and Del Valle in Orinda have contacted CCCSD staff to obtain information regarding connecting their homes to CCCSD's public sewer system and financing the needed public sewer improvements through the formation of a CAD. The area where the CAD would be formed is shown on Attachment 1. The initial steps toward creation of the Vista Del Orinda CAD No. 2010 -2 are for the Board of Directors to adopt a resolution indicating CCCSD's intention to designate an area within which contractual assessments are appropriate; briefly describing the proposed financing for the project; establishing the boundaries of the CAD; setting the time, date, and place for a public hearing at which interested persons may inquire about I of 8 POSITION PAPER Board Meeting Date: November 18, 2010 Subject CONSIDER THE FORMATION OF A CONTRACTUAL ASSESSMENT DISTRICT (CAD) FOR INSTALLATION OF SEWER IMPROVEMENTS TO SERVE PROPERTIES ON VISTA DEL ORINDA, TUMBLING BROOK ROAD AND DEL VALLE IN ORINDA; ADOPT RESOLUTIONS OF INTENTION TO CREATE THE VISTA DEL ORINDA CAD NO. 2010 -2 AND FOR APPROVAL OF THE CAD BOUNDARY or object to the proposed program; and directing staff to prepare an Engineer's Report describing the project and financing arrangements. An additional resolution is required to approve the boundary of the assessment district. By Resolution No. 2001 -008 on February 1, 2001, the Board adopted the CAD Program Policy Statement, which includes formation criteria, procedures, and definitions. Key features of the program are: 1. CADs use voluntary assessment districts based on a contractual assessment process. Participants sign a contract with CCCSD, agreeing to pay back funds fronted by CCCSD to cover the design and construction of infrastructure. 2. The source of funds to cover the assessment district costs is CCCSD's Sewer Construction Fund. 3. Assessment district formation criteria require: a) having a minimum of five properties directly tributary to a proposed CAD facility; b) a minimum of 60% of those properties must have existing homes served by septic tank systems; and c) there can be no more than two dwellings on a participant's property. If one person owns more than one property in a neighborhood, only one property's assessment can be financed through the CAD. Exceptions to these criteria will be considered by the Board on a case -by -case basis. 4. Obligations to pay assessments are recorded as a lien against the properties. Participants are given the option to pay off their assessment within one month of the assessment being set or allowed to amortize the debt through payments on their property tax bills. 5. The amortization period for paying back funds to CCCSD is 10 years with no penalty for early payoff. The interest rate would be based on the Local Agency Investment Fund (LAIF) rate plus 1 % or the borrowed funds' interest rate plus 1 %, with a minimum interest rate of 6 %. 6. CADs offer financing for the following property owners' costs: share of the sewer main extension design and construction costs, including the portion of a private lateral sewer located in the street. The cost of installing the lateral sewer on a participant's property, abandoning an existing septic tank, and the CCCSD capacity fee and other fees are specifically excluded from CAD financing. Page 2 of 8 POSITION PAPER Board Meeting Date: November 18, 2010 subject. CONSIDER THE FORMATION OF A CONTRACTUAL ASSESSMENT DISTRICT (CAD) FOR INSTALLATION OF SEWER IMPROVEMENTS TO SERVE PROPERTIES ON VISTA DEL ORINDA, TUMBLING BROOK ROAD AND DEL VALLE IN ORINDA; ADOPT RESOLUTIONS OF INTENTION TO CREATE THE VISTA DEL ORINDA CAD NO. 2010 -2 AND FOR APPROVAL OF THE CAD BOUNDARY 7. CAD participants are responsible for the non - participants' share of the costs of the CAD facilities. CCCSD 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 are used to reduce the outstanding assessments of CAD participants who took advantage of financing and are distributed to the CAD participants who have paid off their assessments. The proposed Vista Del Orinda CAD No. 2010 -2 complies with the CAD policy as follows: CAD FORMATION CRITERION PROPOSED VISTA DEL ORINDA CAD NO. 2010 -2 1. A minimum of five properties must be 1. There are ten properties that would benefit directly tributary to the proposed CAD from the proposed CAD sewers. facilities. 2. A minimum of 60 percent of the properties 2. Nine of the ten (90 percent) properties are directly tributary to the proposed CAD developed with existing homes using facilities must have existing homes served existing septic systems. by septic systems. 3. A Participant Parcel may not have more 3. None of the properties is developed with than two (2) dwellings to participate in a more than two dwellings. CAD. The CAD Program is included in the 2010 -11 Capital Improvement Budget. The estimated cost of the proposed Vista Del Orinda CAD is $194,000. Staff will request the Board to authorize funds for the Vista Del Orinda CAD No. 2010 -2 from the Sewer Construction Fund at a future date. 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 CCCSD's past experience with numerous sewer construction projects of this nature, the relatively short distance involved, and the impact - limiting nature of CCCSD'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. Page 3 of 8 POSITION PAPER Board Meeting Date: November 18, 2010 subject. CONSIDER THE FORMATION OF A CONTRACTUAL ASSESSMENT DISTRICT (CAD) FOR INSTALLATION OF SEWER IMPROVEMENTS TO SERVE PROPERTIES ON VISTA DEL ORINDA, TUMBLING BROOK ROAD AND DEL VALLE IN ORINDA; ADOPT RESOLUTIONS OF INTENTION TO CREATE THE VISTA DEL ORINDA CAD NO. 2010 -2 AND FOR APPROVAL OF THE CAD BOUNDARY The Board Budget and Finance Committee will review this item at its November 15, 2010 meeting. RECOMMENDED BOARD ACTION: Initiate formation of a CAD consisting of up to ten properties on Vista Del Orinda, Tumbling Brook and Del Valle in the City of Orinda by: 1. Adopting a resolution of intention to create the Vista Del Orinda Contractual Assessment District No. 2010 -2 for the purpose of installing sewer improvements (Attachment 2); and 2. Adopting a resolution approving the boundary of the assessment district (Attachment 3). Page 4 of 8 r A� oe�Q RD N �qM 9a � n � 20 ORINDA SITE 0 LOCATION MAP N.T.S. � SAS Q Q -O 19 ISTA E� o � �j M � Q � q< <F Q N i h U ` 0 100 200 0 u FEET 0 ° LEGEND: a o C CAD AREA N " " " " "" PROPOSED CAD SEWER POTENTIAL PARTICIPANT u EXISTING ° SEWER a Central Contra Costa Attachment Sanitary District PROPOSED BOUNDARY VISTA DEL ORINDA V ' CAD 2010 -02 RESOLUTION NO. 2010 -102 RESOLUTION OF INTENTION TO CREATE VISTA DEL ORINDA CONTRACTUAL ASSESSMENT DISTRICT NO. 2010 -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; 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 CCCSD 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 of Directors of the Central Contra Costa Sanitary District (Board) resolves: 1. This Board intends to approve the following improvement under the authority of the Municipal Improvement Act of 1911, as amended, to wit: construction and installation of approximately 850 linear feet of sanitary sewer line, together with appurtenant work and facilities located at Vista Del Orinda, Tumbling Brook Road and Del Valle in Orinda, California. 2. This Board finds that the parcels within the Contractual Assessment District are shown within the boundaries of the map entitled, "Proposed Boundaries of Vista Del Orinda Contractual Assessment District No. 2010 -2." 3. This Board intends to levy a special assessment upon participating parcels within the described district in accordance with the special benefit to be received by each parcel of land, respectively, from the improvement. The improvement 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, the City of Orinda and Central Contra Costa Sanitary District now in use in the performance of a public function. 4. CCCSD 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 Contractual Assessment District Program as may be established from time to time by CCCSD's Board of Directors. 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 CCCSD. Resolution No. 2010 -102 Vista Del Orinda CAD 2010 -2 Page 2 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 2011 -2012. 6. This Board appoints Jarred Miyamoto - Mills, Provisional Environmental Services Division Manager, 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 shall be held on this matter before the CCCSD Board of Directors on February 3, 2010 at the District 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 CCCSD's past experience with numerous sewer construction projects of this nature, the relatively short distance involved, and CCCSD's impact - limiting construction specifications that would be required of the project. PASSED AND ADOPTED this 18th day of November, 2010, by the Board of Directors of the Central Contra Costa Sanitary District by the following votes: AYES: Members: NOES: Members: ABSENT: Members: Michael R. McGill, P.E. President of the Board of Directors Central Contra Costa Sanitary District County of Contra Costa, State of California COUNTERSIGNED: Elaine R. Boehme, CIVIC Secretary of the Central Contra Costa Sanitary District County of Contra Costa, State of California Approved as to form: Kenton L. Alm, Esq. Counsel for the District RESOLUTION NO. 2010 -103 RESOLUTION APPROVING BOUNDARY MAP VISTA DEL ORINDA CONTRACTUAL ASSESSMENT DISTRICT NO. 2010 -2 The Board of Directors of the Central Contra Costa Sanitary District ( CCCSD) resolves: A map entitled "Proposed Boundaries of Vista Del Orinda Contractual Assessment District No. 2010 -2" has been filed with the Secretary of the Central Contra Costa Sanitary 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 Vista Del Orinda Contractual Assessment District No. 2010 -2, Central Contra Costa Sanitary District, County of Contra Costa, California. This Board intends to levy a contractual assessment upon participating parcels within the described District 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, the City of Orinda and CCCSD because it has been determined that no special benefit will be conferred on any such land within the District. 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 CCCSD 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 18th day of November, 2010 by the Board of Directors of the Central Contra Costa Sanitary District by the following vote: AYES: Members: NOES: Members: ABSENT: Members: Michael R. McGill, P.E. President of the Board of Directors Central Contra Costa Sanitary District County of Contra Costa, State of California COUNTERSIGNED: Elaine R. Boehme, CMC Secretary of the Central Contra Costa Sanitary District County of Contra Costa, State of California Approved as to form: Kenton L. Alm, Esq. Counsel for the District