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HomeMy WebLinkAboutMINUTES - 06032014 - D.6RECOMMENDATION(S): 1. RECEIVE staff report on the Fiscal Year 2014-2015 Tentative Annual Report on assessment charges in County Service Area (CSA) M-30, a copy of which is attached. 2. OPEN the public hearing on the Tentative Annual Report; RECEIVE and CONSIDER all written and oral objections or protests to the Tentative Annual Report; and CLOSE the public hearing. 3. CONSIDER whether to adopt, revise, change, reduce, increase, or modify any estimated assessment charge set forth in the Tentative Annual Report. 4. APPROVE the estimated assessment charges set forth in the Tentative Annual Report. 5. ADOPT Resolution No. 2014/175, confirming the Tentative Annual Report and assessing the charges set forth in the report. 6. DIRECT the Public Works Director or her designee to prepare a Fiscal Year 2014-2015 Final Annual Report for CSA M-30 that conforms to the County’s official assessment roll for Fiscal Year 2014-2015. (County Service Area M-30 Funds) (District II) Project No. 7499-6X5491. APPROVE OTHER RECOMMENDATION OF CNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE Action of Board On: 06/03/2014 APPROVED AS RECOMMENDED OTHER Clerks Notes: VOTE OF SUPERVISORS AYE:John Gioia, District I Supervisor Candace Andersen, District II Supervisor Mary N. Piepho, District III Supervisor Karen Mitchoff, 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: June 3, 2014 David Twa, County Administrator and Clerk of the Board of Supervisors By: June McHuen, Deputy cc: L. Strobel, CAO, R. Campbel, Auditor-Controller, S. Anderson, County Counsel, G. Kramer, Assessor's Office, J. Francisco, Franciso & Associates, W. Lai, PWD, Engineering Services, J. Duffy, PWD Special Districts D. 6 To:Board of Supervisors From:Julia R. Bueren, Public Works Director/Chief Engineer Date:June 3, 2014 Contra Costa County Subject:HEARING on the Fiscal Year 2014-2015 Tentative Annual Report for County Service Area M-30; ADOPT Resolution Confirming Report and Assessing Charges FISCAL IMPACT: The levy of the annual assessment charges in CSA M-30 will provide revenues for police services, park and roadside landscape maintenance, public street maintenance and street lighting services in CSA M-30. BACKGROUND: As directed by Article 1012-2.602 of the Contra Costa County Ordinance Code, the Public Works Director prepared a Fiscal Year 2014-2015 Tentative Annual Report on assessment charges in CSA M-30 and filed it with the Clerk of the Board of Supervisors. CSA M-30 provides police services, park and roadside landscape maintenance, public street maintenance and street lighting services. The Tentative Annual Report contains a description of each parcel of real property receiving services, the basic assessment charge for CSA M-30 and the estimated amount of the assessment charge for each parcel for the fiscal year. Upon the filing of the Tentative Annual Report, the Clerk of the Board of Supervisors fixed a time, date and place for a Board hearing on the Tentative Annual Report and for filing objections or protests thereto, and published a notice of the hearing as provided in Government Code section 6066. Following the public hearing, the Board may adopt, revise, change, reduce, increase or modify any estimated assessment charge, and shall make its determination upon each estimated assessment charge as described in the Tentative Annual Report. The assessment charges in the Tentative Annual Report were computed and apportioned according to a formula that fairly distributes the assessment charge among all subject parcels in proportion to the estimated benefits they will receive from the services provided. Staff recommends approval of the assessment charges in the Tentative Annual Report without modification. The assessment charges in the Tentative Annual Report are higher than the charges levied in Fiscal Year 2013-2014 because they incorporate an automatic adjustment approved by the parcel owners in CSA M-30 in 1997. The adjustment provision allowed for an increase each year based upon the All Urban Consumer Price Index for San Francisco-Oakland-San Jose plus two percent (2%). The Board approved this provision on May 5, 1998. Adoption of Resolution 2014/175 confirms the Tentative Annual Report and assesses the charges set forth therein, but does not levy the charges. The levy of the assessment charges occurs after the preparation of a Final Annual Report that conforms to the official assessment roll for Fiscal Year 2014-2015. The official assessment roll will be issued by the County Assessor on or about July 1, 2014. CONSEQUENCE OF NEGATIVE ACTION: If the Fiscal Year 2014-2015 Tentative Annual Report for CSA M-30 is not confirmed, either as filed or as modified, the assessment charges set forth in the Tentative Annual Report may not be levied for Fiscal Year 2014-2015. Therefore, the District would be unable to provide police services, park and roadside landscape maintenance, public street maintenance and street lighting services and an alternate source of funding would have to be identified. CHILDREN'S IMPACT STATEMENT: Not applicable. CLERK'S ADDENDUM CLOSED the public hearing; APPROVED the estimated assessment charges set forth in the Tentative Annual Report; ADOPTED Resolution No. 2014/175, confirming the Tentative Annual Report and assessing the charges set forth in the report; DIRECTED the Public Works Director or her designee to prepare a Fiscal Year 2014-2015 Final Annual Report for CSA M-30 that conforms to the County’s official assessment roll for Fiscal Year 2014-2015. ATTACHMENTS Resolution No. 2014/175 Annual Report TENTATIVE ANNUAL REPORT FISCAL YEAR 2014-2015 CONTRA COSTA COUNTY SERVICE AREA M-30 (Alamo Springs) June 3, 2014 Board of Supervisors John Gioia, District 1 Candace Andersen, District 2 Mary Piepho, District 3 Karen Mitchoff, District 4 Federal Glover, District 5 Prepared by Contra Costa County Public Works Department CSA M-30 Alamo Springs Tentative Annual Report Fiscal Year 2014-2015 G:\spdist\Board Orders\2014\6-3-14\CSAs\M-30\Annual Report\CSAM-30_14-15AR.docx - 2 - BACKGROUND INFORMATION In August 1989, the Town of Danville (“Town”) and the County 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 of 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 County entered into a new Memorandum of Agreement, superseding the August 1989 Memorandum of Agreement, to establish procedures for joint review and approval of the project. 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 CSA M-30 Alamo Springs Tentative Annual Report Fiscal Year 2014-2015 G:\spdist\Board Orders\2014\6-3-14\CSAs\M-30\Annual Report\CSAM-30_14-15AR.docx - 3 - 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 property tax bills via a County Service Area was the best funding mechanism to pay for the increased services. The services provided by CSA M-30 are: 1. Police Services. All of the police services provided to Town residents by Town police, including without limitation, community services, crime prevention, investigation, patrol, and traffic enforcement. 2. Park and Roadside Landscape Service. All of the park and roadside landscape services provided to Town residents including without limitation, maintenance of parks and other public facilities, such as the Danville Library and Community Center, and maintenance of all roadside and median landscaping. 3. Public Street Maintenance. All of 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. On September 3, 1997, the Danville Town Council adopted Resolution No. 124-97, requesting that the Contra Costa County Local Agency Formation Commission (“LAFCO”) approve formation of County 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. CSA M-30 Alamo Springs Tentative Annual Report Fiscal Year 2014-2015 G:\spdist\Board Orders\2014\6-3-14\CSAs\M-30\Annual Report\CSAM-30_14-15AR.docx - 4 - CURRENT ANNUAL ADMINISTRATION Pursuant to 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 has been filed with the Clerk of the Board of Supervisors, public notice has been completed as required, and the Board will conduct a Public Hearing and then make a determination on each estimated service charge in the tentative report. Contra Costa Board of Supervisors will review the Tentative Annual Report in accordance with Resolution No. 2014/***, on June 3, 2014, 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 a property tax roll of Contra Costa County in the same manner, by the same persons, at the same time as, and together with the County's property taxes. Legal Authority As required by 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 property on the list and determine the proposed charge. This annual report also includes the following 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 are spread to each individual parcel. Those are: 1. Estimate of Annual Cost; and 2. Method of Apportionment. CSA M-30 Alamo Springs Tentative Annual Report Fiscal Year 2014-2015 G:\spdist\Board Orders\2014\6-3-14\CSAs\M-30\Annual Report\CSAM-30_14-15AR.docx - 5 - ESTIMATE OF ANNUAL COST The Fiscal Year 2013-14 projected and Fiscal Year 2014-15 proposed revenues and expenditures are shown in 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 analysis was performed to provide the framework for an operating budget for the proposed services. This 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 only 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 Tentative Annual Report Fiscal Year 2014-2015 G:\spdist\Board Orders\2014\6-3-14\CSAs\M-30\Annual Report\CSAM-30_14-15AR.docx - 6 - 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. These new procedures stipulate that even if charges or benefit assessments are initially exempt from Proposition 218, future increases in the charges or benefit assessments must comply with the provisions of Proposition 218. However, if the increase in the charge or benefit assessment were anticipated in the charge or benefit assessment formula (e.g., consumer price index increase or a predetermined cap) then the 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, they 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. The methodology for calculating the service charge per parcel for each of the Services is similar. In Fiscal Year 1997/98 the 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 CSA M-30 Alamo Springs Tentative Annual Report Fiscal Year 2014-2015 G:\spdist\Board Orders\2014\6-3-14\CSAs\M-30\Annual Report\CSAM-30_14-15AR.docx - 7 - Contra Costa County Resolution 1998-235 for a detailed report that includes the initial calculation of this service charge. The maximum service charge may 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 2014-15 the allowed maximum rate is $1,018.94 per developed parcel. This rate has been calculated as follows: $975.10 per developed parcel in Fiscal Year 2013-14 +2.45% CPI increase for FY 2014-15 = $998.96 +2.00% increase for FY 2014-15 = $1,018.94 In Fiscal Year 2014-15, it is recommended based upon projected expenditures, that the maximum rate of $1,018.94 be collected. It is estimated $37,700.78 in revenue will be needed to provide the services referenced above in Fiscal Year 2014-15. There are 37 parcels that have had a building permit issued. If you divide $37,700.78 by 37 homes, the service charge per parcel is $1,018.94. CSA M-30 Alamo Springs Tentative Annual Report Fiscal Year 2014-2015 G:\spdist\Board Orders\2014\6-3-14\CSAs\M-30\Annual Report\CSAM-30_14-15AR.docx - 8 - SERVICE CHARGE ROLL A list, which shows a listing of those parcels to be charged for Fiscal Year 2014-15, including a description of each parcel to be charged.