City of Brentwood
Home PageContact Us!Back

City Administration

2010 Council Goals and Strategic Plan | City Council Members | Calendar of Events | Elections
eNotification | Sub-Committees| Pledge of Allegiance Sign Ups | Invocation Sign Up
Live Streaming Council Meeting | Streaming PC Help |
Streaming Mac Help |

Current Council Agenda and Past Meeting Information

 

CITY COUNCIL AGENDA ITEM NO. 19

Meeting Date: May 9, 2006

Subject/Title: Direct the City Engineer to proceed with Alternate A to provide Assessment District financing for funding the construction of sewer utilities to service the Randy Way neighborhood and include potential legal expenses as a part of the Assessment District funding.

Prepared by: Engineering: D. Galey

Submitted by: Engineering: B. Grewal

RECOMMENDATION
Direct the City Engineer to proceed with Alternate A to provide Assessment District financing for funding the construction of sewer utilities to service the Randy Way neighborhood and include potential legal expenses as a part of the Assessment District funding.

PREVIOUS ACTION
On October 10, 2005, City staff held a neighborhood meeting with the Randy Way residents to receive and answer questions related to sewer and water services to Randy Way and the adjacent courts

BACKGROUND
There are currently residents in the Randy Way neighborhood with septic systems in need of repair/upgrade and/or the desire to expand their residence over their current septic system capacity. Over the last few months these residents have met with City staff regarding their interest in water and sewer utility main line construction to serve their neighborhood. Since these utilities are not master planned and would serve only their neighborhood, the residents were informed that the associated construction would be their financial obligation. Through their representative, the majority of the neighborhood has decided they would like to move forward with the construction and would like City assistance with the project/construction coordination with future adjacent development and Assessment District financing to fund sewer main line construction at this time. Further extension of these sewer laterals on their private properties will be the individual property owners’ responsibility upon completion of main line construction.

Assessment District financing has been a common practice in the City for many years, with developers and the City working together to fund infrastructure. Each of these prior districts has been at the request, and with 100% consent, of the developers/property owners. Though the majority of the Randy Way neighborhood has expressed their interest in the assessment district financing, we cannot guarantee 100% consent. Lack of 100% consent would affect the way in which a district would be formed, and ultimately, the potential for increased City time and expense. Additional staff and legal counsel time and expense would be necessary in the event a property owner chooses to protest the AD should a majority property owner vote prevail and liens be assessed. Staff has outlined two options to make financing available for the properties in need of sewer construction, including the advantages and disadvantages associated with each option.

Alternate A: Proceed with forming the Assessment District and include legal expenses as a part of the district funding. With this option, sewer service will be available to every parcel, and the property owners have the ability to amortize the cost over a 30 year bond term, by payback on their annual property tax bill, rather than incurring the cost at one time. All expenses that are required to form the district, including City expenses, are included as a part of the district formation, including any legal costs that may be necessary. When forming an infrastructure assessment district, state law requires all property owners of parcels benefiting from the proposed improvements are to be balloted, and should a majority vote prevail, all parcels are assessed and begin to pay whether or not they take advantage of the improvements immediately or in the future.

Alternate B: Proceed with forming the Assessment District and notify the neighborhood that 100% property owner approval and consent to the lien and proceedings will be required to form the district, including waiving their rights to file a lawsuit challenging the assessment. This option will also make sewer service available to every resident, but only in the event of a complete consensus of the property owners, and the City would not have the potential for time and legal expense to defend a protest. Though in the absence of a consensus, the district would not be formed and the property owners would be required to find an alternate financing mechanism.

Of the listed options, staff recommends Alternate A, it makes the necessary sewer service available to all properties in need and includes the means by which the City can recover time and potential expense that may be incurred in assisting these residents. Alternate B will make sewer service available as well, but only with complete consensus of the neighborhood, and leaves the neighborhood to find other financing should this not occur.

FISCAL IMPACT
If chosen, Alternate A will not have any fiscal impact to the City. All costs incurred for district formation will be included as a part of the Assessment District financing to be paid by the benefiting properties.
 

City Administration
City of Brentwood City Council
150 City Park Way
Brentwood, CA 94513
(925) 516-5440
Fax (925) 516-5441
E-mail allcouncil@brentwoodca.gov