COUNTY OF SAN MATEO

Inter-Departmental Correspondence

Department of Public Works

DATE:

March 10, 2003

BOARD MEETING DATE:

March 25, 2003

TO:

Honorable Board of Supervisors

FROM:

Neil R. Cullen, Director Of Public Works

SUBJECT:

Reimbursement Agreement for the Construction of Sewer Facilities in Burlingame Hills Sewer Maintenance District – Burlingame Area

Recommendation

Acting as the governing board of the Burlingame Hills Sewer Maintenance District, adopt a resolution authorizing the President of the Board to execute an agreement with Dr. Lloyd A. and Margaret A. Kwok (Kwoks) for the reimbursement of certain construction costs associated with the installation of sanitary sewer facilities, which were accepted for maintenance by the District on January 9, 2001.

Previous Board Action

Approved:

1)

The annexation of the Lands of Kwok to the District; and

2)

The dedication of 680 linear feet of sewer main constructed by the Kwoks which provides sewer service to the property.

Key Facts

1.

The sanitary sewer that was constructed by the Kwoks to serve their property can also serve other properties in the area.

2.

The Kwoks have requested a “buy-back” agreement in order to be reimbursed for a portion of the cost of constructing the sewer by the owners of properties that tie into the sewer in the future in order to receive sanitary sewer service for their properties.

3.

Section 4888 of the Health and Safety Code authorizes the District to contract with any person, firm or corporation for the joint use of sewer facilities, and for the construction, maintenance and payment for said facilities as stipulated by terms and conditions which may be agreed upon by the parties.

Discussion

The proposed agreement provides for the reimbursement of a proportionate share of these costs as properties connect into these facilities. It also insures that all new users will participate in the reimbursement, as we do not know at this time exactly how many properties will be connected. As an example, the first new connection hereafter into the owner financed facilities pays 1/2 of the adjusted cost of the facility to the owner, the next connection pays 1/3 (1/6 each to owner and first connection), then the third connection pays 1/4 (1/12 each to owner, first connection and second connection), and so forth. This progression is then repeated for additional connections into the facilities. The term of the agreement is until January 9, 2011, and the Kwoks are responsible for keeping the District apprized of their current mailing address. The agreement also provides that the District has no liability if the District fails to collect the funds to reimburse the Kwok’s.

Vision Alignment

We believe our recommendation is consistent with the Shared Vision Commitments to “ensure basic health and safety for all” and to be a “responsive, effective and collaborative government;” and Goal Number 7, “maintain and enhance the public safety for all residents and visitors,” as approving the Buy Back Agreement can result in providing effective sanitary sewer service to parcels in a suburban area, which would otherwise use an “on site” method to handle wastewater and which could have an impact on neighboring residents.

Fiscal Impact

The District will collect a fee in accordance with Exhibit “A” of the Agreement, for each new sewer connection along that portion of the sanitary sewer main installed by the Kwoks. This fee shall be indexed annually to the construction cost index (CCI) and returned to the Kwoks whenever new properties are connected to the sewer main extension. The term of the Buy-Back Agreement is ten (10) years from the date the sewer main extension was accepted by the District and expires on January 9, 2011. These charges shall be in addition to the normal District sewer connection fee and annual sewer service charges collected by the District.

There is no impact to the General Fund.

A form of resolution and agreement has been approved by County Counsel and the Kwoks have executed the agreement.