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Home My WebLink AboutMINUTES - 06161987 - 1.14 r / / TO: BOARD OF SUPERVISORS , AS THE GOVERNING BOARD OF THE CONTRA COSTA COUNTY FLOOD CONTROL AND WATER CONSERVATION DISTRICT FROM: J. MICHAEL WALFORD , CHIEF ENGINEER DATE : JUNE 16 , 1987 SUBJECT: REVISED DRAINAGE AREA 56 CREDIT AND REIMBURSEMENT POLICY Specific Request( s) orRecommendation( s) & Background & Justification RECOMMENDED ACTION : Adopt revised drainage fee credit and reimbursement policy for Contra Costa County Flood Control and Water Conservation District Drainage Area 56 . FINANCIAL IMPACT: The revision does not result in an increase in the fee amount . The revision limits the amount of the drainage fee that can be credited against the storm drains installed to 65 percent of the drainage fee due . The remaining 35 percent would be eligible for reimbursement in accordance with the provisions of the revised policy. REASONS FOR RECOMMENDATION/BACKGROUND : Currently, most of the development is in the upper portion of the East Antioch Creek watershed . The cost of the in- tract storm drains being installed by these developments equals or exceeds the amount of the drainage fees due on the development . The current policy also allows total credit of the drainage costs against the drainage fees . This results in money not being available for the construction of downstream drainage facilities , specifically the detention basins shown on the adopted drainage plan . The revised policy provides that credit for in-tract storm drainage facilities will be limited to 65 percent of the drainage fees due . Continued on attachment: X yes Signature : Recommendation of County Administrator Recommendation of Board Committee Approve Other: Signature( s) : Action of Board on : JUN 16 1987 Approved as Recommended_ Other Vote of Supervisors I HEREBY CERTIFY THAT THIS IS A TRUE AND CORRECT COPY OF AN )— Unanimous (Absent ) ACTION TAKEN AND ENTERED ON Ayes: Noes : THE MINUTES OF THE BOARD OF Absent: Abstain SUPERVISORS ON DATE SHOWN . Attested JUN 16 1987 PHIL BATCHELOR, CLERK OF THE BOARD OF SUPERVISORS AND COUNTY DMINISTRATOR By ti DEPUTY CLERK The remaining 35 percent of the drainage fee is to be paid in cash to create funds to construct the detention basins and improve- ments to East Antioch Creek . The City Council of Antioch agrees with the revision in the policy. CONSEQUENCES OF NEGATIVE ACTION : Unless the revised policy .is adopted , it may be impossible to generate the funds needed to construct the detention basin and other vital drainage facilities required to handle the increased storm flows that will result from development in the upper watershed . Orig. Dept.- Public Works (FCE) cc: City of Antioch (Via Bob Conner, FCE) Building Inspection City Engineer Community Development Public Works Engineering Services Accounting Building Inspeciton RSC : sj BO : DA56Rev . t6 EXHIBIT A DRAINAGE FEE CREDIT AND REIMBURSEMENT POLICY DRAINAGE AREA 56 (ANTIOCH) The following policy adopted on June 16, 1987, by the Board of Supervisors , as the governing body of the Contra Costa County Flood Control and Water Conservation District, shall be used in the administration of the Contra Costa County Flood Control and Water Conservation District Drainage Fee Ordinance No. 82-10 for Drainage Area 56. GENERAL: To provide adequate facilities into which the required subdivision dra ani ge facilities can be discharged, it is necessary that improvements, either interim or ultimate, be made to the East Antioch channel and to the detention basins. Due to a shortage of funds the money to construct these improvements will have to be advanced by developers . The advance cash payment of fees shall be equal to 35 percent of the drainage fees due on the development. The advance cash payment shall be made in the same manner as that specified by the Drainage Fee Ordinance for the payment of drainage fees. I . Eligible Reimbursement Items A. Developers making cash fee advance and installing drainage facilities shown on the adopted drainage plan may be eligible for credit against the required drainage fees and for reimbursement of costs in excess of the drainage fees . The amount of credit or reimbursement shall be limited to the summation of the following eligible costs: 1. Actual in-tract and off-tract construction costs plus a fixed amount of 7% of the in-tract construction cost and 14% of the off-tract construction cost for allowance of miscellaneous developer ' s costs , including contract preparation , engineering, bonding, etc. 2. Actual public agency project inspection fees. 3. Actual off-tract utility relocation costs. 4. Purchase price for the off-tract right of way acquired by the District and paid for by the developer, provided the developer does not have a beneficial interest in the off- tract pruperty. 5. Cash advance of 35% of the drainage fees due to provide construction funding of the major channel element (East Antioch Creek) of the drainage plan. 1 B. The determination of construction costs that will be eligible for credit or reimbursement will be based on at least three independent bids for the drainage facilities work. The developer shall submit said bids to the District for review and concurrence. Upon District concurrence with the bids, the lowest bid shall be the basis for determination of the credit and reimbursement amount. The District reserves the right to reject the developer's bids or any other proposed value of said eligible costs and to calculate said costs using then current prices. C . If the developer elects to install a more costly drainage system than shown on the adopted plan, the District reserves the right to calculate said eligible costs using the then current prices for only the facility shown on the adopted plan. II . Credit Policy The developer is eligible to receive credit for the construction of drainage facilities up to an amount equal to the required drainage fee computed in conformance with Drainage Fee Ordinance 82-10 for Drainage Area 56 and within the limits specified in Section I above. III . Reimbursement Policy A. Where the amount of said eligible costs exceed the drainage fee due, the developer, upon entering into a reimbursement agreement with the District, shall be eligible for a percentage reimburse- ment on the amount of the eligible costs determined by Section I . above, in excess of the drainage fee due as follows: Cash Advance: 100% Group A: 100% (One Hundred Percent) for off-tract work. Group B: 50% (Fifty Percent) for in-tract work. Prior to the application of the above percentages, the eligible costs in excess of the drainage fee due shall be prorated between Group A and B in the same proportion as the total eligible costs for Group A and B are to the total eligible costs. The cash advance required in Paragraph 1A(5) is excluded from this calcula- tion. B. The reimbursement shall be subject to the following limitations: I . Reimbursements shall be paid only from drainage fees collected under Ordinance No. 82-10. 2. If more than one reimbursement agreement is in effect, the reimbursement payments to each developer shall be based on the ratio of the developer's outstanding balance to the total outstanding balance of all agreements. 2 3. The District reserves the right to utilize not more than eighty (80) percent of the fees collected annually, on a fiscal year basis, for the purpose of making reimbursement payments. 4. Reimbursement payments shall be made quarterly, except that, during any quarter the District reserves the right not to make said payments if the amount of available funds to be disbursed is less than $5,000, and the total outstanding balance (reimbursements owed to all parties) is greater than $5,000. 5. No reimbursement payment shall be made until loans from governmental agencies has been made. 6. No reimbursement payment shall be made on' Group A and B installations until the cash advance portion of the outstand- ing reimbursement agreement have been paid. 7. Reimbursement agreements shall remain in effect for 40 annual quarters . The first quarter shall be the one following the quarter in which the County accepts the drainage facilities installed as complete. Any outstanding balance owed at the end of the 40 quarters shall be waived by the developer. IV. Example Attached hereto as Exhibit A, and made a part hereof, is an example illustrating the implementation of the Credit Policy (Section II) and the Reimbursement Policy (Section III . The time constraints on repayment on reimbursement repayment imposed by Paragraphs 4 and 5 shall not extend the 40 quarter period as defined in Paragraph 6. DA56ReimPol .t2 3 .DRAINAGE FEE CREDIT AND REIMBURSEMENT IMPLEMENTATION DRAINAGE AREA 56 EXAMPLE 1 A. ASSUMPTION 1. Development is creating 70 residential sites having lot areas between 7,000- ,7,999 square feet and 60 patio homes sites having lot areas between 3,000-3,999 square feet. 2. The eligible off-tract costs (Group A) are $100,000. (Policy Section I .A.) . 3. The eligible in-tract costs (Group B) are $50,000. (Policy Section I .A. ) . B. FACT 1. Fee for 7 ,000-7 ,999 square foot lots is $1 ,360. (Ordinance Section VII ) 2. Fee for 3,000-3,999 square foot lots is $620. (Ordinance Section VII . 3. Reimbursement of off-tract (Group A) excess cost is 100%. (Policy Section III .A.) 4. Reimbursement of in-tract (Group B) excess cost is 50%. (Policy Section III .A. ) C. FEE CALCULATION Fee Due = (70 lots x $1,360/lot) + (60 lots x $620/lot) Fee Due = $95,200 + $37,200 Fee Due = $132,400 D. CALCULATION OF REIMBURSEMENT Cash Fee Advance $ 46,340 Eligible Costs Group A $100,000 Eligible Costs Group B $ 50,000 Total Eligible Costs 6,340 Less Fee Due $132,400 63,9 Ratio of Group A, Group B to total Eligible. Costs (Policy Section III .A.) $100,000 2 $ 50,000 1 Therefore, the excess is prorated 2/3 to Group A and 1/3 to Group B 4 Cash Advance @ 100% $ 46,340.00 Group A Reimbursement = (100%)($17,600) (213) _ $ 11,733.33 Group B Reimbursement = ( 50%)($17,600) (1/3) _ $ 2,933.33 Total Amount of Reimbursement would be $612006.66 RSC:sj RSC:DA56ReimPol 5