To: Board of Directors, Sonoma County Water Agency
Department or Agency Name(s): Sonoma County Water Agency
Staff Name and Phone Number: Douglas Messenger 547-1952
Vote Requirement: Majority
Supervisorial District(s): Fourth
Title:
Title
Larkfield Estates Limited Purpose Facilities
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Recommended Action:
Recommended action
Adopt a resolution declaring sewers recently constructed by Sonoma County Water Agency (Sonoma Water) in the Larkfield Estates neighborhood within the Airport-Larkfield-Wikiup Sanitation Zone to be a Limited Purpose Facility, and require persons who desire to connect to the system pay the pro-rated costs of constructing the system. (Fourth District)
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Executive Summary:
The Sonoma Complex Fires, a series of fires that swept Sonoma County beginning on Sunday, October 8, 2017, caused widespread damage within Sonoma County. In the Airport/Larkfield/Wikiup Sanitation Zone (Sanitation Zone) entire neighborhoods were destroyed by the Tubbs Fire. Many homes in the Larkfield area were connected to septic systems, and at the request of some neighborhood property owners, the Sonoma County Water Agency (Sonoma Water), on behalf of the Sanitation Zone, constructed a sewer collection system to serve homes that have been or are being reconstructed in the Larkfield Estates neighborhood.
Prior to construction, property owners who committed to the project were eligible for a Board-approved financing program from Sonoma Water for their proportionate share of the costs to construct the collection system and laterals to each participating parcel. Nearly one-half of the property owners in the neighborhood participated in the project.
By approving the recommended actions, Sonoma Water will recoup design and construction expenses for the pro-rated share of the costs of the sewer main from those who now or in the future desire to connect to the constructed system.
Discussion:
On February 5, 2019, the Board approved the Airport-Larkfield-Wikiup Sanitation Zone Larkfield Estates Collection System Project (“Project”). As part of the same item, the Board approved a financing program, which offered low-cost financing for the proportional costs of constructing the new collection system to property owners in the fire-impacted area. Each property that chose to connect to the sewer was able to participate in this financing, which is to be repaid over 30 years, with the first 10 years in a grace period for the a pro-rated share of the design, administrative, and construction costs for the collection system and lateral to the property line. This amount was calculated after bid opening and shortly before project award to be $41,650 per participating parcel.
As described in the Board item discussion on February 5, the intention is that the property owners who choose to connect to the sewer after completion of the Project will (1) pay their proportional construction cost for the sewer mains; (2) be responsible for installing a lateral from their house to the sewer main in the street; and (3) paying the connection fee in effect at the time of connection.
In that same item, the Board approved an introduction to amendments of section 3.29 and 3.30 of the Sonoma County Water Agency Sanitation Code (Sanitation Code). These amendments insured the Financing Program and the Sanitation Code are consistent with each other. At the following meeting, the Board granted final approval of these amendments to the Sanitation Code.
On October 15, 2019, the Board Awarded the contract for the Project to Ranger Pipelines. Contract time commenced in January, and the work was accepted as substantially complete on August 26, 2020, at which time the final portion of the new sewer was put into service.
There are 85 parcels in the project area have frontage along a street where new sewer was constructed and do not have an existing connection to the public sewer. Of these parcels, 10 parcels have frontage along a street where they could possibly connect to previously existing sewer, but could also opt for a connection to the newly constructed sewer. If the parcel owner of one of the 10 parcels chooses to connect to newly constructed sewer, then connection to the collection system is subject to payment of pro-rated share of the collection system construction costs. The remaining 75 parcels have frontage only on the newly constructed collection system, so future connection to the collection system will be subject to payment of pro-rated share to connect to new sewer.
As of January 20, 2021, Sonoma Water staff has calculated, the pro-rata share of collection system project costs, to be $34,277. This amount includes the project costs of the main sewers, and excludes costs for lateral construction and other parcel specific costs incurred by project participants, and included in the $41,650 amount charged to the parcels that participated as described above. The $34,277 will be adjusted annually on July 1 in proportion with the most recent change to the Engineering News Record Construction Cost Index (ENR-CCI) for San Francisco.
The Sanitation Code Section 3.29, as approved on February 5, 2019, requires a resolution to deem the recently constructed sewer to be a limited purpose facility. The proposed resolution prohibits connection and sewer service from the Project except upon pro-rated contribution toward its cost. This prohibition does not apply to parcels that have the option and choose to connect to sewer that was available prior to the Project.
Prior Board Actions:
10/15/2019: Among other action, Awarded the contract for "Airport-Larkfield-Wikiup Sanitation Zone Larkfield Estates Collection System” to Ranger Pipelines, Inc., for the amount of $3,727,868, and authorize the Chair of the Board to execute the contract.
02/05/2019: Among other action, Approved the Airport-Larkfield-Wikiup Sanitation Zone Larkfield Estates Collection System Project; Introduced amendments to Section 3.29 and 3.30 of the Sonoma County Water Agency Sanitation Code; Approved Financing Program; Authorized the General Manager to execute agreements with each applicant within the Project area who commit to connect to the collection system.
06/05/2018: Among other actions, Directed the Sonoma County Water Agency staff to develop a Sewer Collection System Financing Program, a process for voluntary community participation, and an Ordinance that codifies the process.
Fiscal Summary
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Narrative Explanation of Fiscal Impacts:
This action will have no direct fiscal impact on project budget or Airport-Larkfield-Wikiup Sanitation Zone funds. This will assure that no parcels connect to the Larkfield Estates collection system without first reimbursing the Sanitation Zone for costs associated with the construction of the collection system.
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Narrative Explanation of Staffing Impacts (If Required):
None
Attachments:
Resolution
Related Items “On File” with the Clerk of the Board:
None