HomeMy WebLinkAboutMINUTES - 06052012 - C.103RECOMMENDATION(S):
ADOPT Resolution No. 2012/256 that determines the tax exchange for the proposed Mt. Diablo Health Care District
reorganization (LAFC 12-02).
FISCAL IMPACT:
This agreement reallocates approximately $39,702 from the detached portion of the Mount Diablo Health Care
District to the remaining taxing entities in the tax rate areas. (Comprised of approximately $8,290 County General
Fund; $850 County Library Fund; $480 County Service Area P-6; $2,382 Contra Costa County Fire Protection
District; $27,700 remaining taxing entities).
BACKGROUND:
The Local Agency Formation Commission ("LAFCO" or "Commission") initiated the Mt. Diablo Health Care
District ("MDHCD" or "District") special study in response to past and ongoing concerns as to whether the MDHCD
should continue as a special district and in response to findings contained in the 2007 Local Agency Formation
Commission Municipal Service Review. LAFCO received the special study of governance options on January 11,
APPROVE OTHER
RECOMMENDATION OF CNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE
Action of Board On: 06/05/2012 APPROVED AS RECOMMENDED OTHER
Clerks Notes:
VOTE OF SUPERVISORS
AYE:John Gioia, District I
Supervisor
Mary N. Piepho, District III
Supervisor
Karen Mitchoff, District IV
Supervisor
Federal D. Glover, District V
Supervisor
Contact: Rich Seithel,
674-7869
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: June 5, 2012
David Twa, County Administrator and Clerk of the Board of Supervisors
By: Stacey M. Boyd , Deputy
cc: Auditor-Controller, County Administrator's Office, County Counsel, LAFCO, City of Concord, Department Conservation and Development, Mt.
Diablo Health Care District
C.103
To:Board of Supervisors
From:David Twa
Date:June 5, 2012
Contra
Costa
County
Subject:Mt. Diablo Health Care District Tax Transfer
BACKGROUND: (CONT'D)
2012.
The study identified several governance options and recommended dissolving MDHCD and appointing a
successor agency to either continue the service or wind up the affairs of the District. In accordance with the
special study, the Commission adopted a zero sphere of influence for MDHCD signaling the Commission's intent
to dissolve the District and appoint a successor agency. LAFCO then continued the public hearing to March 14,
2012.
In March, the Commission was asked to consider governance options for the MDHCD. At that time, the
Commission closed its public hearing and expressed an interest in a governance option to "reorganize" the District
whereby the City of Concord would apply to LAFCO to shrink the boundaries of the District and establish
MDHCD as a subsidiary district of the City of Concord. The City of Concord approved Resolution No. 12-29
(Attachment 2) on April 3, 2012 initiating proceedings for a reorganization.
On April 9, LAFCO staff distributed a Notice of Receipt of Application to all affected agencies. LAFCO 12-02,
Mt. Diablo Health Care District Reorganization: Detachment/Establishment of Subsidiary District of the City of
Concord, requesting the detachment from the MDHCD of all territory located outside of the exterior boundaries
of the cities of Concord and Pleasant Hill. The portion of the District within the exterior boundaries of the City of
Concord and the City of Pleasant Hill would be established as a subsidiary district of the City of Concord.
LAFCO's notice indicates that the District is the only agency whose service area or responsibility is being altered
by the proposed jurisdictional change. In particular, District territory outside of the exterior boundaries of the City
of Concord and the City of Pleasant Hill is being detached from the District.
Although the District includes parcels located in the City of Martinez, City of Clayton, and the City of Walnut
Creek, the Assessor's Office advises that the only parcels where MDHCD receives a portion of the ad-valorem
property tax, other than City of Concord and the City of Pleasant Hill, are parcels located in the unincorporated
area of Contra Costa County. It is estimated that the District's FY 11-12 ad-valorem property tax from these
detached parcels is approximately $39,702. It is this $39,702 that would be reallocated by this action.
Because territory is being detached from the District, the local agencies whose service area or responsibility is
being altered (i.e. MDHCD) is required to negotiate an exchange of property tax revenues. Specifically, Revenue
and Taxation Code Section 99(b)(5) provides, "In the event that a jurisdictional change would affect the service
area or service responsibility of one or more special districts, the board of supervisors of the county or counties in
which the districts are located shall, on behalf of the district or districts, negotiate any exchange of property tax
revenues. Prior to entering into negotiation on behalf of a district for the exchange of property tax revenue, the
board shall consult with the affected district. The consultation shall include, at a minimum, notification to each
member and executive officer of the district board of the pending consultation and provision of adequate
opportunity to comment on the negotiation."
Letters advising each individual MDHCD board member and the Interim Executive Director were mailed May 7,
2012 (the letters are attached Attachment 1). These letters serve as the notification and provision of adequate
opportunity to comment on the property tax allocation negotiation required by Revenue and Taxation Code
Section 99(b)(5).
The attached resolution 2012/256 stipulates that MDHCD's share of the base tax and the annual tax increment for
all unincorporated areas being detached from the MDHCD (the "Subject Territory") shall be allocated to each
remaining taxing entity in the Subject Territory tax rate areas proportionately according to the proportion of base
tax each such taxing entity receives for such tax rate area. In summary, the MDHCD base and increment will be
"absorbed" proportionately by the remaining taxing entities.
CONSEQUENCE OF NEGATIVE ACTION:
If this resolution is not adopted, the District's reorganization will be delayed and may result in delaying LAFCO
public noticing.
CHILDREN'S IMPACT STATEMENT:
Not applicable.
ATTACHMENTS
Resolution No. 2012/256
MDHCD letters
City of Concord Resolution