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HomeMy WebLinkAboutMINUTES - 02092010 - C.04RECOMMENDATION(S): REFER to the Transportation, Water and Infrastructure Committee the proposed formation of Community Facilities District (CFD) 2010-1 for Countywide Street Lighting, for discussion, review and recommendation to the Board. Project No.: 7394-6X5001 FISCAL IMPACT: There is no impact to the County General Fund. 100% of the funding will come from CFD 2010-1 once it is established. BACKGROUND: Existing County Service Area (CSA) L-100 was established in 1979 to provide for the operation and maintenance of street lights in the unincorporated areas of Contra Costa County. The scope of CSA L-100 extends only to operations and maintenance of street lights. CSA L-100 does not include provisions for upgrades, inflation or increasing costs of maintenance. Additionally, CSA L-100 requires developing properties to annex by way of the Local Agency Formation Commission (LAFCO) which can be time consuming and expensive. APPROVE OTHER RECOMMENDATION OF CNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE Action of Board On: 02/09/2010 APPROVED AS RECOMMENDED OTHER Clerks Notes: VOTE OF SUPERVISORS AYE:John Gioia, District I Supervisor Gayle B. Uilkema, District II Supervisor Mary N. Piepho, District III Supervisor Susan A. Bonilla, District IV Supervisor Federal D. Glover, District V Supervisor Contact: Susan Cohen (925) 313-2160 I hereby certify that this is a true and correct copy of an action taken and entered on the minutes of the Board of Supervisors on the date shown. ATTESTED: February 9, 2010 David J. Twa, County Administrator and Clerk of the Board of Supervisors By: EMY L. SHARP, Deputy cc: David Twa, CAO, Stephen Ybarra, Auditor Controller, Gary Huisingh, Engineering Services, Marlon Epps, Engineering Services C. 4 To:Board of Supervisors From:Julia R. Bueren, Public Works Director/Chief Engineer Date:February 9, 2010 Contra Costa County Subject:Proposed Formation of Community Facilities District 2010-1 for Countywide Street Lighting In order to better administer and maintain the street lights in unincorporated BACKGROUND: (CONT'D) Contra Costa County, Public Works is proposing the formation of a new street light district. It has been determined that the best vehicle for generating the street lighting service tax is through a Mello-Roos Community Facilities District. Pursuant to the Mello-Roos Community Facilities Act of 1982, Public Works, Special Districts is considering the formation of a Community Facilities District. A Community Facilities District for Countywide Street Lighting would provide a flow of revenue sufficient to provide the services and maintenance on an ongoing basis, as well as a more streamlined process for meeting the County’s permit requirements related to street lighting for new parcels and subdivisions. A CFD would have broader capabilities than the existing CSA by allowing purchase and installation of new street lights. The proposed CFD would have a flexible rate schedule, varying by parcel type and existence of street lights fronting on those parcels; as well, the CFD would have an indexed formula for keeping up with inflation by way of the Consumer Pricing Index (CPI). For properties required to annex into a street light district through the development process, a CFD would provide for an efficient and cost effective street light district annexation process as compared to the CSA annexation process. Specifically, the CFD funds generated would be eligible to cover expenses for obtaining, constructing, furnishing, replacing, operating and maintaining street lighting equipment, apparatus, or facilities, paying the salaries and benefits of personnel and related expenses, and for establishing reserves for cash flow, repairs, replacement and for the future provision of street light services. The services to be funded by a CFD are in addition to those provided in the territory before the creation of the CFD in that CSA L-100 only funds the operation and maintenance of street lights. The County has successfully established similar maintenance CFDs in the past. The formation of CFD 2010-1 was reviewed at a County Debt Advisory Committee meeting on January 29, 2010 and our proposal for the Board of Supervisor’s referral of this item to the TWIC comes with the Debt Advisory Committee’s support. Other CFDs approved by the Board of Supervisors include the following: • Cypress Lakes Fire Service CFD, Oakley area (2004); • Public Works Maintenance CFD – North Richmond area (2006); • Public Works Stormwater Maintenance CFD, Countywide (2007); and • BART Transit Village Facilities Maintenance CFD (2008). Two property owners have each submitted a petition in support of the establishment of CFD 2010-1 for Countywide Street Lighting and will serve as the initial annexations to effectively form the CFD. CONSEQUENCE OF NEGATIVE ACTION: Without the Board of Supervisor’s referral, Public Works will be unable to review and discuss this proposal with the Transportation, Water and Infrastructure Committee and the Board of Supervisors would see no further agenda items on this matter for consideration.