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Home My WebLink AboutMINUTES - 07292014 - C.15RECOMMENDATION(S): 1. ACCEPT the filing of the Fiscal Year 2014-2015 Final Annual Report on service charges in County Service Area (CSA) M-28 (“Final Annual Report”), a copy of which is attached. 2. ADOPT Resolution No. 2014/244, confirming the Final Annual Report and levying the service charges set forth in the report. 3. DIRECT the Clerk of the Board to file certified copies of the Final Annual Report and Resolution No. 2014/244 with the County Auditor-Controller. 4. DIRECT the County Auditor-Controller to include the service charges on the tax roll for Fiscal Year 2014-2015, the service charge for each parcel to appear as a separate item on the tax bill, pursuant to County Ordinance Code section 1012-2.614. 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). APPROVE OTHER RECOMMENDATION OF CNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE Action of Board On: 07/29/2014 APPROVED AS RECOMMENDED OTHER Clerks Notes: VOTE OF SUPERVISORS AYES 5 NOES ____ ABSENT ____ ABSTAIN ____ RECUSE ____ 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: July 29, 2014 David J. Twa, County Administrator and Clerk of the Board of Supervisors By: Stacey M. Boyd, Deputy cc: L. Strobel, County Administrator , R. Campbell, Auditor-Controller , S. Anderson, County Counsel , G. Kramer, County Assessor , J. Francisco, Francisco & Associates, Inc. , W. Lai, Assistant Public Works Director, J. Duffy, Special Districts C. 15 To:Board of Supervisors From:Julia R. Bueren, Public Works Director/Chief Engineer Date:July 29, 2014 Contra Costa County Subject:ADOPT Resolution Confirming Fiscal Year 2014-2015 Final Annual Report in County Service Area M-28 and Levying Service Charges Therein (Bethel Island) BACKGROUND: On June 3, 2014, the Board of Supervisors conducted a public hearing and adopted Resolution No. 2014/176 confirming the Fiscal Year 2014-2015 Tentative Annual Report on proposed service charges for CSA M-28. CSA M-28 provides continued operation and maintenance of a water supply system. On July 1, 2014, the County Assessor released the official assessment roll for Contra Costa County for Fiscal Year 2014-2015. Thereafter, pursuant to Section 1012-2.612 of the County Ordinance Code, the Public Works Director directed staff to determine whether the Tentative Annual Report required revision in order to conform to the official assessment roll. Any change to an estimated basic service charge or estimated service charge in a Tentative Annual Report may be based only on changes in ownership, changes of address, the subdivision of an existing parcel or changes in the use class of a parcel. Upon review of the official assessment roll, staff determined that no revisions were required. The Tentative Annual Report is the Final Annual Report. The Board may confirm the Final Annual Report by resolution. Resolution No. 2014/244 serves to confirm the Final Annual Report and constitutes the levy of the service charges for Fiscal Year 2014-2015. CONSEQUENCE OF NEGATIVE ACTION: If a resolution confirming the Fiscal Year 2014-2015 Final Annual Report is not adopted, service charges for CSA M-28 would not be levied or collected in Fiscal Year 2014-2015 and 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. ATTACHMENTS Resolution No. 2014/244 Final Annual Report FINAL ANNUAL REPORT FISCAL YEAR 2014-2015 CONTRA COSTA COUNTY SERVICE AREA M-28 (Willow Mobile Home Park Water District) July 29, 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 Final Annual Report Fiscal Year 2014-15 G:\spdist\Board Orders\2014\7-29-2014\CSAs\CSA M-28\Annual Report\CSAM-28_14-15FAR.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 Final Annual Report Fiscal Year 2014-15 G:\spdist\Board Orders\2014\7-29-2014\CSAs\CSA M-28\Annual Report\CSAM-28_14-15FAR.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 was filed with the Clerk of the Board of Supervisors, public notice was completed as required, and the Board conducted a Public Hearing and then made a determination on each estimated service charge in the tentative report. Contra Costa Board of Supervisors confirmed the Tentative Annual Report in accordance with Resolution No. 2014/176, on June 3, 2014, and conducted 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 Final 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 Final Annual Report Fiscal Year 2014-15 G:\spdist\Board Orders\2014\7-29-2014\CSAs\CSA M-28\Annual Report\CSAM-28_14-15FAR.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 Final Annual Report Fiscal Year 2014-15 G:\spdist\Board Orders\2014\7-29-2014\CSAs\CSA M-28\Annual Report\CSAM-28_14-15FAR.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 2014-2015, it is recommended based upon projected expenditures, that the maximum rate of $91,937.40 per parcel be collected. It is estimated that at least $91,937.40 in revenue will be needed to provide the services referenced above in Fiscal Year 2014-2015. CSA M-28 Willow Mobile Home Park Water District Final Annual Report Fiscal Year 2014-15 G:\spdist\Board Orders\2014\7-29-2014\CSAs\CSA M-28\Annual Report\CSAM-28_14-15FAR.docx - 6 - There is 1 parcel that is included in the CSA. 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