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Home My WebLink AboutMINUTES - 06032014 - D.7RECOMMENDATION(S): 1. RECEIVE staff report on the Fiscal Year 2014-2015 Tentative Annual Report on service charges in County Service Area (CSA) M-28, 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 service charge set forth in the Tentative Annual Report. 4. APPROVE the estimated service charges set forth in the Tentative Annual Report. 5. ADOPT Resolution No. 2014/176, 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-28 that conforms to the County’s official service roll for Fiscal Year 2014-2015. (County Service Area M-28 Funds) (District III) Project No. 7473-6X9E70. 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. 7 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-28; ADOPT Resolution Confirming Report and Assessing Charges FISCAL IMPACT: The levy of the annual service charges in CSA M-28 will provide revenues for the continued operation and maintenance of a water supply system in CSA M-28. (84% CSA M-28 Funds and 16% County General Fund) 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 service charges in CSA M-28 and filed it with the Clerk of the Board of Supervisors. CSA M-28 provides continued operation and maintenance of a water supply system. The Tentative Annual Report contains a description of each parcel of real property receiving services, the basic service charge for CSA M-28 and the estimated amount of the service charge for each parcel for the fiscal year. The Tentative Annual Report proposes that the services provided by CSA M-28 in Fiscal Year 2014-2015 be funded by the annual service charge paid by the property owners within CSA M-28, and funds transferred by the County if expenses exceed the annual service charge. 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 service charge, and shall make its determination upon each estimated service charge as described in the Tentative Annual Report. The service charges in the Tentative Annual Report were computed and apportioned according to a formula that fairly distributes the service charge among all subject parcels in proportion to the estimated benefits they will receive from the services provided. Staff recommends approval of the service charges in the Tentative Annual Report without modification. The service 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-28 in 2007. The adjustment provision allowed for an increase each year based upon the San Francisco Bay Area – All Urban Consumer Price Index. The Board approved this provision on August 7, 2007. Adoption of Resolution 2014/176 confirms the Tentative Annual Report and assesses the charges set forth therein, but does not levy the charges. The levy of the service 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-28 is not confirmed, either as filed or as modified, the service 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 continued operation and maintenance of a water supply system 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 service charges set forth in the Tentative Annual Report; ADOPTED Resolution No. 2014/176, confirming the Tentative Annual Report and assessing the charges set forth in the report; and DIRECTED the Public Works Director or her designee to prepare a Fiscal Year 2014-2015 Final Annual Report for CSA M-28 that conforms to the County’s official service roll for Fiscal Year 2014-2015. ATTACHMENTS Resolution No. 2014/176 Annual Report Annual Report TENTATIVE ANNUAL REPORT FISCAL YEAR 2014-2015 CONTRA COSTA COUNTY SERVICE AREA M-28 (Willow Mobile Home Park Water District) 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-28 Willow Mobile Home Park Water District Tentative Annual Report Fiscal Year 2014-15 G:\spdist\Board Orders\2014\6-3-14\CSAs\M-28\Annual Report\CSAM-28_14-15AR.docx - 2 - BACKGROUND INFORMATION The Willow Mobile Home Park is located on Bethel Island. Consists of 1 parcel (23 acres) and includes 172 mobile homes. In order for safe water services to be provided, it was recommended a CSA be formed. On December 10, 1991 the Contra Costa Board of Supervisors approved County Resolution 91/807 which formed County Service Area (CSA) M-28 (Willow Mobile Home Park Water District). CSA M-28 was formed pursuant to the County Service Area Law to ensure the proper flow of funds for the ongoing operation, maintenance and servicing of extended community water system services within in the Bethel Island Area. CSA M-28 has been given the power to acquire, construct, operate, replace, maintain and repair a water supply and distribution system as authorized by California Government Code Section 25210.4(d) and 25120.4a(1). The funding for CSA M-28 comes from service charges which are obtained from the users of the water system, in accordance with former Government Code Section 25210.77a, Government Code Section 25210.9 and County Ordinance Section 1012-2.6. A map of the general location of CSA M-28 is shown below: CSA M-28 Willow Mobile Home Park Water District Tentative Annual Report Fiscal Year 2014-15 G:\spdist\Board Orders\2014\6-3-14\CSAs\M-28\Annual Report\CSAM-28_14-15AR.docx - 3 - 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-28. 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-28 Willow Mobile Home Park Water District Tentative Annual Report Fiscal Year 2014-15 G:\spdist\Board Orders\2014\6-3-14\CSAs\M-28\Annual Report\CSAM-28_14-15AR.docx - 4 - ESTIMATE OF ANNUAL COST A special fund has been set up for the collection of revenues and expenditures for CSA M-28. The total cost of construction, operation, and maintenance and servicing of the water system can be recovered from the collection of charges. Incidental expenses including administration, engineering fees, legal fees and all other costs associated with the construction, operation and maintenance and servicing of the water system may also be included. When CSA M-28 was formed, a financial analysis was performed to provide the framework for an operating budget for the proposed operation, maintenance and servicing of extended community water system services. Revenues collected from the 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-28 Willow Mobile Home Park Water District Tentative Annual Report Fiscal Year 2014-15 G:\spdist\Board Orders\2014\6-3-14\CSAs\M-28\Annual Report\CSAM-28_14-15AR.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. 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-28 are deemed a special benefit and only serve the parcels located within the boundaries of the District. Without the services, the parcel located in the unincorporated area would not receive water services. Therefore the services in CSA M-28 are 100% special benefit to the parcel 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. The maximum charge rate was previously set at $75,300 per parcel (1991 dollars). Since 1991 the Consumer Price Index (CPI) for the San Francisco Bay Area All Urban Consumers and the costs to operate and maintain the improvements increased, however the charge rate remained constant until Fiscal Year 2007-2008. In Fiscal Year 2007-2008 the charge rate was increased to $79,818 per parcel with an allowance for an increase each subsequent year based upon the San Francisco Bay Area – All Urban Consumers as of April 2007 (215.842). Due to an aging system, the cost of operating and maintaining water facilities continues to increase. It was proposed in Fiscal Year 2010-11 that the charge rate be increased to $95,500 per parcel (8.5%). However, this increase was not supported by the property owners, and therefore the 8.5% increase was not imposed. Rate The February 2014 CPI Index is 248.615, therefore the maximum rate for Fiscal Year 2014-2015 can be increased 2.45% to $91,937.40 per parcel. It is proposed to levy charges at the maximum rate for Fiscal Year 2014-2015. In Fiscal Year 2014-15, it is recommended based upon projected expenditures, that the maximum rate of $91,937.40 per parcel be collected. It is estimated $91,937.40 in revenue will be needed to provide the services referenced above in Fiscal Year 2014-15. There is 1 parcel CSA M-28 Willow Mobile Home Park Water District Tentative Annual Report Fiscal Year 2014-15 G:\spdist\Board Orders\2014\6-3-14\CSAs\M-28\Annual Report\CSAM-28_14-15AR.docx - 6 - that is included in the CSA. If you divide $91,937.40 by 1 parcel, the service charge per parcel is $91,937.40. 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 is shown below. Parcel Proposed FY 2014-2015 Number Amount 029-020-004-7 $91,937.40