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HomeMy WebLinkAboutRes - 2003.30 - Approving the Formation of the Arroyo Verde Assessment DistrictRESOLUTION N0.2003.30 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE EAST VALLEY WATER DISTRICT APPROVING THE FORMATION OF THE ARROYO VERDE ASSESSMENT DISTRICT WI3EREAS, the Board of Directors of the East Valley Water District ("EVWD") finds: A. EV WD is formed and organized pursuant to the County Water District Law, Water Code :iection 30000 et seq. B. The Arroyo Verde Mutual Water Company ("AVMWC") is a private corporation organized and operating as a mutual water company incorporated and existing under the laws of the State of California. AVMWC's service area is within the jurisdictional boundaries of EV WD. C. AVMWC'swatersystemconsistsofawell,boosterpump,andvarioustypesofpiping that are inoperable and/or not in compliance with the legal standards enforced by the State of California Department of Health Services ("the Water System"). As a result, AVMWC's shareholders are currently receiving domestic water service by virtue of an emergency connection to EVWll's water distribution system. D. AVMWC's shareholders have formally requested that EVWD permanently assume the operation and control of the Water System and that the properties served thereby become part ofEVWD~'s oi~icial service area. E. EVWD has agreed to consider said proposal if outside funding can be obtained to repair and. replace the Water System and a majority of the shareholders of AVMWC consent to the financing mechanism deemed appropriate by EV WD to repay the costs thereof. w~' F. On December 11, 2000, EVWD's Board of Directors adopted Resolution No. 2000.26 which authorized the submission of an application for construction funds from the Safe Drinking Water State Revolving Fund ("the Fund") for the purpose of securing funds to be used for the construction of facilities necessary to bring the Water System in to a condition deemed appropriate by EV WD to assume the operation and control thereof ("the Project"). G. In or about January of 2002, EVWD and AVMWC entered into a Notice of Application Acceptance issued by the State of California Department of Water Resources on or about December 19, 2001, for Project No. 3610064-O1, wherein the Fund would provide a construction loan in the ;amount of $136,034.00 ("the Loan") and a construction grant ("the Grant") in the amount of $544,136.00, for a total contribution by the Fund of $680,170.00 to be applied to the cost of the Project, the total price of which is cuttently estimated to be the sum of $810,170.00. H. On June 11, 2002, EVWD's Board of Directors adopted Resolution No. 2002.25 which authorized the initiation of proceedings to form the Arroyo Verde Assessment District AVAD") in accordance with California law to repay the Loan and reimburse EV WD for the portion of the ]Project costs not covered by the Fund. I. OnNovember26, 2002, EV WD's Board ofDirectors adopted aNegativeDeclaration for the proposed Project pursuant to the California Environmental Quality Act (Public Resources Code Section 21000 et seq.) and the Guidelines promulgated thereunder (14 California Code of Regidations Section 15000 et seq.). J. On or about May 20, 2003, EV WD caused a Notice of Public Meeting and Public Heazvtg ("1:he Notice")and Official Ballots ("Ballots") to be delivered to the records owner(s) of each parcel within the AVAD as determined from the last equalized property tax roll as set forth in the 2 EAST VALLEY WATER DISTRICT ARROYO VERDE MUTUAL, WATER COMPANY WATER SYSTEM IMPROVEMENT PROJECT TABLE OF C®NTENTS 1. Background 2. Area 3. Project Description k. Improvements Proposed Financing-Assessment District E,. Legal Requirements/Procedures 7. 7ientative Schedule f;. Exhibits A) Improvement District Boundary Map B) Plat showing Existing Water and Sewer Systems C) Plat showing Proposed Water System Improvements D) Preliminary Project Cost Estimate E) Preliminary Assessment Diagram F) Preliminary Assessment Roll SECTION 1: BACKGROUND The Arroyo Verde Mutual Water Company was formed on January 19,1932 for the purpose of "organizing, establishing, maintaining, conducting and carrying on :~ mutual water company to sell, distribute, supply and deliver water for irrigation purposes and domestic use to the members of this water company". The ser/ice area was defined, in a resolution dated February fl0, 1932, "shares shall be issued to the owners of land situate in the County of San Bernardino, State off Caliifornia, lying south of Base Line, and located in'I`racts Nos. 1979 and 2289".'The service area boundary remains the same to this date. At the time of Arroyo Verde Mutual Water Company's incorporation, a water system already existed on the property. It is not clear exactly of what thus system consisted. By resolution dated February 1®, 1932, the water company accepted the offer of G.W. Wolf and ®. W. Yates to transfer all pumps, wells, pipelines, and other equipment for the pumping and distribution off water to the company. Currently the system serves 105 stockholders. The system consists of a evell, booster pump and various types of piping in the distribution system. There is no above ground storage for I-ire protection or domestic supply. The system has not met St:~Ee Dcpartment of Tilealth standards for some time. In ®ctober off 1999, Clue company's avell became inoperalsle9 the system is eurrenC~lyfe~nctfiousing with an emergency con!~ectiou? ~o the Last galley 6~Ya4er Dfistrict's system, which is adjacent to the Arroyo Verde Mutual Water Company's service area. SECTION 2: AREA The area generally encompassed by the boundaries of the Arroyo Verde Mutual Water Company, (Tract No. 1979 & 2289) consists of approximately 38.5 acres, Within this area there are 134 existing parcels. The existing land uses are: 1.Commercial 4 Parcels 2.Single Family Residences 81 Parcels 3.Multi Family Residences 20 Parcels 4.Vacant -17 Parcels 5.Currently Served by EVWD 6 Parcels 6.Owned by EVWD (not included in project)6 Parcels Total 134 Parcels The 3 parcels fronting on Baseline Street west of Alamo Road are located within the city limits of the City of San Bernardino, the balance of the parcels within the project are located within the city limits of the City of Highland. The 6 parcels owned by The East Valley Water District located on both sides of the southerly extension of Alamo Road are currently being used as part of the corporate yard and are not included in the improvement project. Existing improvements within the project area consist of: 1. Street paving, 24' +/-wide with no curb, sidewalks or street lights 2. Driveway approaches are A.C paving or dirt, no concrete 3. Sewer system, East Valley Water District owns and operates a sewage collection system within the project area 4. Water system, the currently existing water system within the project area is substandard SECTION 3: PROJECT DESCRIPTION The Project consists of replacing the existing water distribution system within the company's service area with a system constructed to current East Valley Water District standards. The proposed system will be connected to the existing East Valley Water District system at the west end of Paloma Road, within Baseline Street at Golondrina Drive, and in 9`h Street at Glolondrina Drive and at Bonnie Street. The proposed system will include Water Mains, Fire Hydrants, Water Service IJatera-s and Water Meters. ACI proposed water mains will be located with the public streets. SECTION 4: IMPROVEMENTS The proposed water distribution system wall consist of the following : 1. Water Mains -Ductile Iron Pipe per EVWD Standard Specifacataon 2.4-4 2. Fire Hydrants -per EVWD standard W-113 3. Cate Valves -per EVWD Standard SpeeiCcation 2.06 Water Service Lines -per EVWDD Standard Speciffieataon 2.15 Sa ANv at¢M Meters -per EVWD Star~daral S~ecaficat'soe~ 2.? 7 6. Trench Back£dI and Pavement Repair -per the City of Highland and the City of San Bernardino S1:C7'ION 5: PROPOSED FINANCING-ASSESSMENT DISTRICT Typically an assessment project would be funded by the sale of tax exempt municipal improvement bonds. This project, however, lacks the size required to make a bond issue feasible. The East Valley Water District is proposing to lend the Arrovo Verde Improvement District the funds necessary to accomplish the proposed project. For the purpose of this study, financing cost were determined based on a term of 20 years at an interest rate of 8"/0. Costs included Preliminary Studies, Plans, Surveying, Legal Fees, District Costs, Construction Management, Construction Costs and Financing Costs. SECTION 6: LEGAL REQUIREMENTS / PI2OCEEDURES One of the requirements of creating an assessment district is that a direct bene:Cit must be shown to each parcel proposed to be assessed a portion of the cost of the project. In this case, the properties within the project area no longer have the benefit of a functioning water distribution system. Even with the temporary connection to the East Valley Water District system, the existing distribution system does not meet current standards. If this situation is allowed to continue, the owners of properties being served by the system face the possibility of the properties being condemned by the Health Department. SECTION 7: TENTATIVE SCHEDULE Using 1911 Act Procedures: 1. Engineer prepares preliminary study 2. Meetings with EVWD & Arroyo Verde MWC stockholders 3. Project approved by EVWD Board of Directors & Arroyo Verde stockholders representatives Engineer prepares Water System Improvement Plans and Engineer's Report S. EVWD Board off Directors adopts Resolution off Intention and approves Preliminary Engineer's Report 6. Record Boundary Map 7. Advertise for Bids 8. Disclosures I. Mailing (20 days prior to hearing) 2. Advertise 3. Posting -Notice on prop¢rty 9, Acc¢pt Bids 10. Devise Engineer°s Report t:Il. Conduct Public hearing of Arroyo Verde Stock6aold¢rs (mir:. 3O days from R¢solution of Intention Il2. Record Ass¢ssm¢nt Diagram ~ Noti¢¢ oi" Ass¢ssrm¢u~ts Q:nay n©~ b¢ necessary when not s¢lling D~onds} l~. 3~ day Ap~¢a] ~ ¢ri~,~c~~ ARROYO VERDE WATER SYSTEM IMPROVEMENT PROJECT EAST VALLEY WATER DISTRICT EXHIBIT "D" PRELIMINARY PROJECT PROJECT COST ESTIMATE 21-Feb-00 CONSTRUCTION COST ESTIMATE Item Quantity Unit Un it cost Cost Connection to existing system 4 Each 2,500 10,000 10" D.I. Pipe Lin Ft. 0" to 8" Reducer Each 8" D.1. Pipe 4529 Lin Ft.45 203,805 8" Tee 4 Each 185 740 8" Gate Valve 9 Each 650 5,850 Fire I-lydrar~t Assembly 16 Each 2,500 4C,000 Service Lateral 125 Each 1,000 125,000 Pavement f2epair (City of Highland)13587 Sq. Ft.3 40,761 Contingency (15%)15% Subtotal 426,156 63,923 490,079 CONSIJLT,ANT FEES Item Fee Preliminary Study 7,800 Preliminary Surveying 6,000 Design and Plan Preparation 12,800 Assessment Engineering 7,000 Legal Counsel 12,000 Construction Bid Process 6,500 Construction Staking 5,500 Construction Management 9,500 EVWD Administrative Cost 5,000 72,100 Eas4 Valley Water Distract Fees Item Plan Check 5,000 Inspection 13,000 Front Footage Charge (9TH ~ Baseline)1127.44 L.F. $ 16.50 $18,603 36,603 Pr®gect ~®st= $sss,as2 Capac'sty Cuuarge TOTAL PR03ECT COST= $ 598,782 1,733 Per SeNIC2 $ 1,733.0®