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HomeMy WebLinkAboutRESOLUTIONS - 06052018 - 2018/137 TENTATIVE ANNUAL REPORT FISCAL YEAR 2018-2019 CONTRA COSTA COUNTY SERVICE AREA M-30 (Ala mo Springs) June 5, 2018 Board of Supervisors John Gioia, District 1 Candace Andersen, District 2 Diane Burgis, District 3 Karen Mitchoff, District 4 Federal Glover, District 5 Prepared by Contra Costa County Public Works Department CSA M-30 Alam o Springs Tentative Annual Report Fiscal Year 2018-2019 G:\spdist\Board Orders\2018\06-05-2018\CSAs\M-30\Annual Reports\CSA_M-30_18-19_TAR.docx - 1 - BACKGROUND INFORMATION In August 1989, the Town of Danville (“Town”) and the Count y of Contra Costa (“County”) entered into a Memorandum of Agreement to undertake a joint-jurisdiction General Plan and project review for the Alamo Springs Project (“Project”), which is located north of Interstate 680 off Alamo Springs Drive. The project provides for the development of 53 single-family homes, of which 11 are located within the Town of Danville and 42 remain in the unincorporated portion of Contra Costa County. A map of the general location of this development is shown below: After certification of an Environmental Impact Report (EIR) for the Project, the Board of Supervisors on December 8, and 15, 1992, approved the Project. The unincorporated area of the Project was simultaneously rezoned to a planned unit development. On January 23, 1996, the Town and Count y entered into a new Memorandum of Agreement, superseding the August 1989 Memorandum of Agreem ent, to establish procedures for joint review and approval of the project. CSA M-30 Alam o Springs Tentative Annual Report Fiscal Year 2018-2019 G:\spdist\Board Orders\2018\06-05-2018\CSAs\M-30\Annual Reports\CSA_M-30_18-19_TAR.docx - 2 - During the planning process, it was decided that the Town would provide extended services in the form of police, public street maintenance, park and roadside landscape maintenance to the homes in the unincorporated area. Public Street lighting would be provided by Contra Costa County. It was decided that a benefit assessment or service charge collected on the propert y tax bills via a Count y Service Area (CSA) was the best funding mechanism to pay for the increased services. On September 3, 1997, the Danville Town Council adopted Resolution No. 124-97, requesting that the Contra Costa County Local Agenc y Formation Commission (“LAFCO”) approve formation of Count y Service Area (CSA) M-30. On November 17, 1997, LAFCO approved the formation of CSA M-30. On May 5, 1998 the Board of Supervisors conducted a public hearing and subsequently approved Resolution 1998/235, which authorized the annual levy of assessments on the parcels located within CSA M-30 to fund extended public services. The services provided by CSA M-30 are: 1. Police Services. All the police services provided to residents by Town police, including without limitation, community services, crime prevention, investigation, patrol, and traffic enforcement. 2. Park and Roadside Landscape Service . All park and roadside landscape services provided to residents including without limitation, maintenance of parks and other public facilities, such as the Danville Librar y and Community Center, and maintenance of all roadside and median landscaping. 3. Public Street Maintenance. All the public street maintenance, including without limitation, repair and replacement of asphalt on public streets, crack sealing, and other maintenance measures to protect and prolong the life of the public streets, repair and replacement of street signs, stop signs, etc. 4. Street Lighting. The operation, maintenance and servicing of public street lights and appurtenant facilities as required to provide safe lighting along public streets. This maintenance is provided by Contra Costa County. CSA M-30 Alam o Springs Tentative Annual Report Fiscal Year 2018-2019 G:\spdist\Board Orders\2018\06-05-2018\CSAs\M-30\Annual Reports\CSA_M-30_18-19_TAR.docx - 3 - CURRENT ANNUAL ADMINISTRATION Pursuant to Count y Ordinance Section 1012-2.6, former County Service Area Law (California Government Code Section 25210.77a), and current County Service Area Law (California Government Code Section 24210.3, subd. (d)), the Tentative Annual Report has been filed with the Clerk of the Board of Supervisors, public notice has been as required, and the Board of Supervisors will conduct a Public Hearing and then make a determination on each estimated service charge in the tentative report. The Board of Supervisors will also review the Tentative Annual Report in accordance with Resolution No. 2018/137, on June 5, 2018, and conduct a Public Hearing in connection with the proceedings for CSA M-30. Upon adoption of the Final Annual Report by the Board of Supervisors, the charges contained herein will be collected on the property tax roll of Contra Costa County in the same manner, b y the same persons, at the same time as, and together with the County's property taxes. Legal Authority As required b y County Ordinance Section 1012-2.6, former County Service Area Law (California Government Code Section 25210.77a), and current County Service Area Law (California Government Code Section 24210.3, subd. (d)), the Tentative Annual Report includes the following minimum information as shown in the Service Charge Roll: 1. A description of each parcel of real property receiving the miscellaneous extended service; 2. The basic service charge; 3. The estimated amount of the service charge for each parcel for such year; and 4. A parcel list identifying each parcel receiving services that allows parcel owners to find their propert y on the list and determine the proposed charge. This annual report also includes an estimate of annual costs and the method of apportionment as additional information to allow the reader to better understand what services are being paid for, what is the total annual cost for the services provided, and how the cost of services is spread to each individual parcel. CSA M-30 Alam o Springs Tentative Annual Report Fiscal Year 2018-2019 G:\spdist\Board Orders\2018\06-05-2018\CSAs\M-30\Annual Reports\CSA_M-30_18-19_TAR.docx - 4 - ESTIMATE OF ANNUAL COST The Fiscal Year 2017-18 projected and Fiscal Year 2018-19 proposed revenues and expenditures are shown below. A special fund has been set up for the collection of revenues and expenditures for CSA M-30. Incidental expenses including administration, engineering fees, legal fees and all other costs associated with the extended services may also be included. When CSA M-30 was formed, a financial anal ysis was performed to provide the framework for an operating budget for the proposed services. This analysis was based on the estimated expenses for each service component (police, parks, and roadside landscape, street maintenance, and street lighting). Revenues collected from the benefit assessment or service charge shall be used onl y for the expenditures represented in this report. Any balance remaining on July 1 at the end of the fiscal year must be carried over to the next fiscal year. CSA M-30 Alamo Springs-Danville FY 2017-18 FY 2018-19 Fund 249900 Org 7499 Projected Proposed Beginning Fund Balance $ 7,753.23 $ 20,091.79 Revenue: Taxes and Assessment 47,255.20 49,918.40 TOTAL CURRENT REVENUE $ 47,255.20 $ 49,918.40 Total Revenue + Carryover: $ 55,008.43 $ 70,010.19 Expenditures: Publications & Legal Notices 300.00 300.00 Town of Danville /Professional/Specialized Svcs (Non-County)30,944.20 65,010.19 Transfer to CSA L-100 388.44 400.00 Tax & Assessment Fees 284.00 300.00 County Counsel - - Public Works Labor 3,000.00 4,000.00 Transfers - Gov/Gov - Other Total Expenditures 34,916.64$ 70,010.19$ FUND BALANCE AVAILABLE $ 20,091.79 $ - CSA M-30 Alam o Springs Tentative Annual Report Fiscal Year 2018-2019 G:\spdist\Board Orders\2018\06-05-2018\CSAs\M-30\Annual Reports\CSA_M-30_18-19_TAR.docx - 5 - METHOD OF APPORTIONMENT Special vs. General Benefit On November 5, 1996, California voters approved Proposition 218 entitled "Right to Vote On Taxes Act" which added Articles XIIIC and XIIID to the California Constitution. While its title refers only to taxes, Proposition 218 establishes new procedural requirements for fees, charges and benefit assessments. Proposition 218 procedures stipulate that even if charges or benefit assessments are initiall y exempt from Proposition 218, future increases in the charges or benefit assessments must compl y with the provisions of Proposition 218. However, if future increases in the charge or benefit assessment were anticipated in the charge or benefit assessment formula when approved by property owners (e.g., consumer price index increases or a predetermined cap) then the future increase in the charge or benefit assessment would be in compliance with the intent and provisions of Proposition 218. Proposition 218 provides that “only special benefits are assessable” and defines a special benefit as a particular and distinct benefit conferred on real property and not a general benefit received by the public at large. The extended public services provided within CSA M-30 are deemed a special benefit and only serve the parcels located within the boundaries of the District. Without the services, the 42 homes located in the unincorporated area would receive standard County police services, limited park and roadside landscape services, limited public street maintenance and no County public street lighting. Standard County police services are characterized by 1.1 officers per 1,000 residents, and traffic enforcement would be provided by the California Highway Patrol on an as requested basis. Therefore, the services in CSA M-30 are 100% special benefit to the 42 parcels within the CSA. Methodology The total operation and maintenance costs for the extended public services are apportioned in accordance with the methodology that is consistent with standard practices. Since the service charge is levied on the owners of properties as shown on the tax rolls, the final charges must be assigned by Assessor's Parcel Number. The 42 parcels of the Project that make up CSA M-30 are all designated for residential use. The projects CC&R’s require that most parcels be developed with a main residential unit of at least 3,500 square feet. While the parcel sizes vary, the y all have substantially the same size building pads. It is anticipated that homes built on these lots will be similar in size and that the size of families who live in these homes will be similar. For these reasons, the need for, and the use of each of the services (miscellaneous police, park and roadside landscaping maintenance, public street maintenance and County public street lighting) will be substantially the same for each parcel. Therefore, the same service charge will be levied on each developed parcel within CSA M-30. In order for a parcel to be classified as developed, a building permit must be issued prior to April 30. CSA M-30 Alam o Springs Tentative Annual Report Fiscal Year 2018-2019 G:\spdist\Board Orders\2018\06-05-2018\CSAs\M-30\Annual Reports\CSA_M-30_18-19_TAR.docx - 6 - The methodology for calculating the service charge per parcel for each of the services is similar. In Fiscal Year 1997/98 t he service charge per parcel was set at $467.13 per parcel. To determine the cost per parcel, the total budget for providing service to the current total service area was divided by the total number of parcels or units within the current service area. Please refer to Contra Costa Count y Resolution 1998-235 for a detailed report that includes the initial calculation of this service charge. The maximum service charge ma y be adjusted annually to reflect the prior year’s change in the Consumer Price Index (CPI) for All Urban Consumers for San Francisco-Oakland-San Jose plus two percent (2%). The base CPI index to be used for future calculations is April 1997 (159.6). Any change in the rate per developed parcel, which is the result of the change in the CPI shall not be deemed an increase in the service charge subject to the requirements of Proposition 218. Rate For Fiscal Year 2017-18 the allowed maximum rate was $1,181.38 per developed parcel. The Fiscal Year 2018-19 rate has been calculated as follows: $1,181.38 per developed parcel in Fiscal Year 2017-18 +3.56% CP I increase for FY 2018-19= $1,223.49 +2.00% increase for FY 2018-19 = $1,247.96 In Fiscal Year 2018-19, it is recommended based upon projected expenditures, that the maximum rate of $1,247.96 be collected. It is estimated $ 49,918.40 in revenue will be needed to provide the services referenced above in Fiscal Year 2018-19. There are 40 parcels that have had a building permit issued. If you divide $49,918.40 by 40 homes, the service charge per parcel is $1,247.96. CSA M-30 Alam o Springs Tentative Annual Report Fiscal Year 2018-2019 G:\spdist\Board Orders\2018\06-05-2018\CSAs\M-30\Annual Reports\CSA_M-30_18-19_TAR.docx - 7 - SERVICE CHARGE ROLL A list, of those parcels to be charged for Fiscal Year 2018-19, including a description of each parcel to be charged is shown below: Lot Number Assessor Parcel Number Added to roll: Assessment 2016-17 38 197-050-029-2 2008 $1,247.96 17 197-440-005-1 2000 $1,247.96 18 197-440-006-9 2002 $1,247.96 19 197-440-007-7 2004 $1,247.96 20 197-440-008-5 2004 $1,247.96 21 197-440-009-3 2001 $1,247.96 22 197-440-010-1 2001 $1,247.96 23 197-440-011-9 2002 $1,247.96 24 197-440-012-7 2013 $1,247.96 25 197-440-013-5 2013 $1,247.96 26 197-440-014-3 2014 $1,247.96 27 197-440-015-0 2013 $1,247.96 28 197-440-016-8 2013 $1,247.96 29 197-440-017-6 2015 $1,247.96 30 197-440-018-4 2013 $1,247.96 31 197-440-019-2 2014 $1,247.96 14 197-450-001-7 vacant $0.00 15 197-450-002-5 vacant $0.00 16 197-450-003-3 2001 $1,247.96 32 197-450-004-1 2006 $1,247.96 33 197-450-005-8 2013 $1,247.96 34 197-450-006-6 2002 $1,247.96 35 197-450-007-4 2016 $1,247.96 36 197-450-008-2 2014 $1,247.96 37 197-450-009-0 2014 $1,247.96 39 197-450-010-8 2001 $1,247.96 40 197-450-011-6 2000 $1,247.96 41 197-450-012-4 2001 $1,247.96 42 197-450-013-2 2008 $1,247.96 43 197-450-014-0 2001 $1,247.96 44 197-450-015-7 2002 $1,247.96 45 197-450-016-5 2001 $1,247.96 12 197-460-008-0 2003 $1,247.96 13 197-460-009-8 2003 $1,247.96 46 197-460-010-6 2001 $1,247.96 47 197-460-011-4 2015 $1,247.96 48 197-460-012-2 2001 $1,247.96 49 197-460-013-0 2001 $1,247.96 50 197-460-014-8 2014 $1,247.96 51 197-460-015-5 2001 $1,247.96 52 197-460-016-3 2006 $1,247.96 53 197-460-017-1 2001 $1,247.96 $49,918.40