HomeMy WebLinkAboutMINUTES - 01191999 - SD5 .................-..................I...................................................-
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QT_1
TO: BOARD OF SUPERVISORS
Contra
FROM: WATER COMMITTEE Costa
Supervisor Joe Canciamilla, Chair County
Supervisor Gayle B. Uilkema
DATE: December 1, 1998
SUBJECT: REPORT ON NEGOTIATIONS FOR THE PROPOSED ESTABLISHMENT OF A JOINT
POWERS AGREEMENT AND JOINT ASSESSMENT DISTRICT WITH THE
STOCKTON PORT DISTRICT FOR LOCAL COST ASSESSMENT SHARING OF
MAINTENANCE DREDGING AND DISPOSAL ACTIVITIES (the "PROJECT") FOR
SUISUN AND NEW YORK SLOUGH CHANNELS IN EAST CONTRA COSTA
COUNTY, CALIFORNIA
SPECIFIC REQUEST(S) OR RECOMMENDATION(S) & BACKGROUND AND JUSTIFICATION
RECON MiENDATIONS
1. AUTHORIZE Water Agency staff(Community Development Department and County Counsel's Office),
with the assistance of the joint consultants (Lawrence G. Mallon and Mike Cheney) concurrently employed by the Water
Agency and Stockton Port District, to proceed with negotiations and preliminary work on the proposed establishment of
a cooperative process with the Stockton Port District ("Port District") to:
(a)Formulate a final draft Joint Powers Agreement for consideration and approval by the County and/or
Water Agency and Port District to provide for the subject Project's implementation,
(b)Develop a final draft amendment(acceptable to Water Agency staff)to the existing Local Cooperation
Agreement("LCA")between the Stockton Port District and the U.S. Army Corps of Engineers("USACE")to add the
County and/or Water Agency as local cost-sharing partner for the above-noted Project
CONTINUED ON ATTACHMENT: X YES SIGNATURE
—RECOMMENDATI OFCOUNTY A)>MINISTRATOR X...RECOMMENDATION F BOARD COMMITTEE
APPROVE
4�Y
� <:.-
SIGNATURE(S): V JOE CANCIAMILLA SUP MVISOR GANUB. UILKEMA
ACTION OF BQXR
ON January 19,'1999 APPROVED AS RECOMMENDED MLOTHER_
VOTE OF SUPERVISORS
I HEREBY CERTIFY THAT THIS IS A TRUE
.LxUNANIMOUS (ABSENT AND CORRECT COPY OF AN ACTION TAKEN
AYES:—NOES: AND ENTERED ON THE MINUTES OF THE
ABSENT:— ABSTAIN: BOARD OF SUPERVISORS ON THE DATE
SHOWN.
Contact: Roberta Goulart (510/335-1226) ATTESTED January 19, 1999
cc: Community Development Department (CDD) PHIL BATCHELOR, CLERK OF
County Administrator THE BOARD OF SUPERVISORS
County Counsel AND COUNTY ADMINISTRATOR
Auditor-Controller
BY" DEPUTY
areaswith the understanding and concurrent agreement of the Port District to directly re-assume this local cost
obligation and sponsorship should no local Contra Costa County assessment funds become and remain available
on an ongoing basis as contemplated for this purpose.
(c)Proceed with the preparation of documents and scheduling of hearings, as appropriate, to allow
consideration of the formation of an assessment district and levying of assessments to fund local costs of
dredging and disposal of sediment from the Suisun and New York Slough Channel reaches of the Project.
(d) It is contemplated that the above-noted prospective actions will be undertaken as generally outlined
for guidance in the attached joint consultants' November 10, 1998 report schedule.
2. AUTHORIZE up to $70,000 of Water Agency funds to be budgeted for Agency staff and consultant
costs expected to be incurred for the above-noted actions(e.g., formation of the Assessment District and
development of the JPA and LCA documents),which would be reimbursed should an Assessment District be
formed and assessments levied.
3. AUTHORIZE the Community;Development Director to execute a contract with.Towill Inc. for$10,000
to update for the Projects' Contra Costa County area an existing GIS System to be used in mapping and
identifying parcels to be assessed, and provision of other relevant parcel data. (These lcosts are included in#2,
above). In the past,Towill Inc. has performed for the Port District similar services for this County's Project
area and is continuing to perform similar services for the Port District within it and outside of the Project's area.
FINANCIAL IMPACT
The County Water Agency has funds which could be budgeted for the above-stated recommendations. Joint
consultant Larry Mallon has indicated that funds utilized would be reimbursed once the Assessment District is
formed and levies made. The$70,000 would be used primarily to fund consultants(such as Towill, above)who
will be completing the parcel and boundary maps. In addition, an engineering report, necessary legal
documents, as well as other miscellaneous costs required for formation of the assessment district, as outlined in
the attached joint consultants' cost estimate(pages 12-14 of the attached report)will be financed by this sum.
Other contracts for necessary legal and engineering services will be presented to the Board when timely for
approval consideration.
REASONS FOR RECOM gENDA' Imo' N&BACKGROUND
Before a cooperative,joint process project between the County and the Port of Stockton for a JPA and Joint
Assessment District can be realized,preliminary agreement term negotiations must be completed and other
consultant services work initiated. For this reason, hoard agreement to proceed further with this proposal, and
provision of funding for preliminary work is necessary to be done so that final actions can be considered and
approved at later dates by the Board of Supervisors and the Board of Port Commissioners as outlined in the
attached(revised) schedule. The more detailed joint consultants"report is attached which outlines a possible
scope and general content of the JPA, the Assessment procedure, as well as cost and a proposed schedule for
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concurrent action. A draft of JPA is to be prepared by the joint consultant and presented for staff review and
negotiation. The revised schedule proposes initial (concurrent) action by the Boards in April, 1993 for JPA
approval and initiation of the Assessment District process. This joint process would utilize assessment work
and documents information completed by the Port in 1992, revising and updating it as necessary. This should
allow the County and Port to utilize work already done by the Port, and utilize existing information as a time
and cost-saving measure.
In the fall of 1992,the Port of Stockton was in the process of establishment of an assessment district to
enable the Port to assess industry within the Stockton area as well as industry located]in east county for costs
associated with channel dredging and particularly disposal activities. At that time, east county industry
requested County involvement,citing discomfort with the Port handling assessment activities, and requested the
County to consider taking over local sponsorship of ship channel dredging and disposal for the two channel
reaches within east county. The Industry beneficiaries of channel deepening and maintenance, including Dow,
Domtar,PG&E, USS Posco,Gaylord, Tosco and Wickland,preferred County involvement, as they would have
more of a voice in the assessment, how monies would be spent, and they preferred for these actions to occur
geographically closer to home.
The Board of Supervisors on December 15, 1992,declared its intent to assume local sponsorship
responsibility with the condition that local industry would assume legal responsibility,for any project local
costs. As a result,the Port indicated it would suspend the Assessment District process for six months to allow
the County time to possibly obtain Industry's legal commitment and assume local sponsorship. An Amendment
to the existing 1982 Local Cooperation Agreement between the Port and the Army Corps of Engineers was
drafted to add the County to it,but could not be approved by the County unless industry provided a cost pass-
through(financial indemnity) agreement. A number of years of negotiation ensued concerning the terms of
dram Financial Indemnity agreement, and on June 1, 1998, Industry's legal representative informed the
Board'sWater Committee that Industry would not agree and sign this agreement, due to a clause calling for
"joint and several liability". Because so much time and effort has been spent by County staff and Counsel in
this effort, the Board's Water Committee, (which has received regular reports over the lyears on this issue) was
insistent that industry sign this agreement,or provide another agreement in its place within a prescribed period
of time. industry did not, and to date industry has not provided anything further in this regard. Staff
conversations with industry and industry's legal representatives have indicated that no agreement was reached
among industry on this issue(industry meetings primarily focused on the relative percentages they would pay,
rather than the mechanism by which they would pay it). As six years have elapsed, and the Amendment
allowing the County to become local sponsor could not be approved in the absence of an adequate Industry
commitment ,the Part of Stockton has become concerned that the project be completed in some other manner.
To further complicate this issue, a dredging and disposal event for Suisun Channel was scheduled to occur
in Spring 1998, and an upland site to dispose of dredged materials had become necessary. The Port of Stockton
communicated their desire not to participate as local sponsor, as the Port perceived this as the County's
responsibility. County staff, after direction from the Board,negotiated an agreement with Winter Island Farms,
to dispose of 154,040 cubic yards of sediment on Winter Island, for levee rehabilitation purposes, with the
ability to dispose of additional material to the Island during the 199912040 dredge episode. Industry provided
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$45,00 to cost share with the Winter Island Reclamation District for costs incurred during and after this
dredge/disposal episode.
Due to the lack of resolution of the Local Sponsorship issue over the 6-year period, and industry's inaction,
on August 27, 1998 County staff and Supervisor Canciamilla met with Port of Stockton representatives on how
best to proceed with the local sponsorship issue. It was determined that,because of language the County could
have included in the Amendment, it was best to continue with the County becoming local sponsor(with
language added to this amendment to allow for a federal government cost-share for upland disposal,not
contained in the original Agreement signed by the port). It was determined at that time to proceed with further
consideration of a cooperative assessment district process with the County and the Port to allow for the local
sponsor's costs to be covered by the levy of local assessments (rather than continuing to try for a voluntary but
legally binding financial indemnity agreement). A Joint Powers Agreement was discussed as the best method to
initiate a joint assessment process, and it was determined at this meeting to review the two earlier and quite old
JPA's between the Port and County for amendment(or to draft a new one). After review of a number of
options, a joint local assessment process was proposed as the method to address the financial cost pass-through
in a timely, mandatory and legally sufficient manner. A follow-up meeting was also conducted, and the joint
consultant contractors were directed to proceed with a proposed time-line and estimated costs to take to the
respective Boards at the County and Port for a decision on proceeding further with this process.
The Port has requested that the County approve and sign an Amendment#1 to become Local Sponsor before
the Port commits to any continuance of the JPA or continuation of(an updated)Assessment District. The
schedule, as presented in the attached document allows for staff negotiation of the terms of the Amendment and
its possible approval at the same time as the Assessment Process is proposed to be initiated.
It has been indicated that the following items would lend support to a Board approval of the aforestated
Recommendations:
• The County has entered Joint Powers Agreements with the Port in the past(1970 and 1980), concerning
earlier cost-share channel construction proposals which have no current operative effect.
• The Board of Supervisors indicated its "conditional" intent to assume Local Sponsorship in December of
1992.
• The Port of Stockton suspended its establishment of an Assessment District in 1992, at the request of
Industry and the County.
• The Suisun and New York Slough Channel sections (which require maintenance) are within the east County
area and outside of the Stockton Port District boundaries.
• The County is better prepared to acquire upland disposal areas within the County boundaries because of its
eminent domain powers which it appears the Port District may not be able to exercise outside of its
boundaries.
-4-
• The County has accepted sponsorship responsibility(with local oast assurances) for the Baldwin Ship
Channel deepening project, which lies along the County boundary to the west and north. Sponsorship of the
Suisun and New York Slough reaches only extends maintenance responsibility into the east County area.
• There is a perceived public obligation for the County to assume responsibility for the project channels areas
as the County is the closest geographic entity.
• Proposed Amendment#1 to the 1982 Agreement between the Port and Army Corps of Engineers when
finally negotiated by staff would allow for the County to receive federal-local cost-sharing for upland
disposal, a provision not explicit in any other documents (was not considered by the carps prior to 1996).
• The County benefits from channel deepening and dredging, given the continuing health of industry within
the County, and resultant property tax revenue along the waterway,as well as employment considerations.
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:Otx TSA COS rh
Date: November 10 1998 98 NOV 18 Hl 5129
'
From: Lawrence G. Mallon, Esq. and Michael Cheney, P.E. 6T
To: Roberta Goulart(Contra Costa County Water Agency)and Lex Krygsman (Stockton.
Port District)
Subject: Joint Strategy for Adoption of Joint Powers Agreement and Implementation of
John F. Baldwin(Avon to New York Slough)and Stockton Ship Channels Maintenance
Assessment District 99-1 by Contra Costa County and Stockton Port District
MEMORANDUM
Background
At joint meetings of the staffs of the Contra Costa County WaterAgency and the
Stockton Port District on August 27 and September 24, 1998 respectively, it was
mutually agreed to seek concurrent action by the Contra Costa County Board of
Supervisors and the Board of Commissioners of the Stockton Port District(the"Parties")
for the following:
(1) authorization by the Board of Supervisors for execution of Amendment
Number 1 to the Agreement(the"Agreement") between the United States of America
and the Stockton Port District for Local Cooperation on the San Francisco Bay to
Stockton, California (John F. Baldwin and Stockton Ship Channels)Federal Navigation
Project, Avon to Stockton(the"Project");
(2) execution by the Parties of a new Joint Powers Agreement(",SPA") modeled
on the March 10, 1970 and May 1, 1980 prior agreements concerning both local
cooperation required under the Agreement, and the establishment of a maintenance
assessment district as a permanent means of financing the acquisition and improvement
of one or more aquatic or upland dredged material disposal sites for the operation and
maintenance of the Project and providing indemnity to the Parties for costs and expenses
incurred under the JPA and in assessment district formation; and
(3) adoption by the Parties of joint Resolution of Intention to establish a John F.
Baldwin(Avon to New York Slough) and Stockton Ship Channels Maintenance
Assessment District 99-1 (the"maintenance assessment district")under the JPA to
indemnify the Parties for the costs and expenses of providing items of required local
cooperation under the Agreement, and to perform the necessary functions of site
acquisition, preparation, permitting, improvement, and maintenance of aquatic and
upland disposal sites for dredged material by contract wherever practicable subject to
joint supervision under the JPA.
1
1. Interim arrangements between Parties and Winter Island Farms, A California General
Partnership and Reclamation District Number 2122
In order to provide items of local cooperation under the existingAgreement in
support of the €998 operation and maintenance episode by the U.S. Army Corps of
Engineers C'USACE"), an upland disposal site for the Avon and New'York Slough
reaches of the Project must be provided. Otherwise the scheduled maintenance dredging
episode may not occur and appropriated funds reprogrammed for other projects. The
operative instruments required by the USACE real estate branch as evidence of site
availability is an authorization for entry, and attomeys certificate, confirming the
acquisition and availability of a valid temporary work easement in gross in advance of the
scheduled maintenance dredging episode
An agreement in principle was reached between Water Agency staff and Winter
Island Farms, A California General Partnership, the site owner of a permitted upland site
adjacent to the New York Slough reach of the channel by the same name, and
Reclamation District Number 2€22, the permit holder, for use of the site for that purpose
for the deposit of 145,000 cubic yards of material in €998, and at least an additional
€05,000 cubic yards of material in €999-2000 with potential future capacity of as much
as 500,000 cubic yards in future years subject to permit approvals for levee restoration.
Private industry provided the sum of$45,000 as a contribution to the County for
Site acquisition and in turn reimbursement of the fawner for a portion of its costs and
expenses in obtaining necessary regulatory approvals and site preparation. The financial
contribution was conditioned upon a guarantee by the Owner of future site use,
affirmative recognition in the Amendment Number I to the Agreement of eligibility for
Federal cost-sharing of site preparation costs and improvement as a general navigation
feature under Section 201 of the Water Resources Development Act of 1996 (110 Stat.
3673; 33 U.S.C. 2211 note), and either the County or the Stockton Port District(the
"District")providing the site by agreement with the Owner and the USACE in lieu of the
private beneficiaries.
As the County has not executed Amendment Number 1 to the Agreement,the
District has agreed to execute the requisite agreement with the Owner prepared by
County consultant, and the necessary authorization with the USAGE to permit the 1998
maintenance dredging episode to proceed, in reliance upon the long term strategy set
forth in this Memorandum being jointly executed by both Parties.
11. Conforming amendment to Amendment Number 1 to Agreement
A conforming amendment to Amendment Number € to Agreement is
incorporated in order to clarify and ensure the availability of affirmative recognition in
the Amendment Number 1 to the Agreement of eligibility for Federal cost-sharing of site
preparation costs and improvement as a general navigation feature under'Section 201 of
2
the Water Resources Development Act of 1996(110 Stat. 3573; 33 U.S.C. 2211 note)
(See Exhibit 1).
III. Scope of Joint Powers Agreement
(a)Institutional history
Effective March 10, 1970,the County of Contra Costa,the County of Solana, and
the Stockton Port District formed a Joint Powers Authority C JPA")to provide local
cooperation for the construction of the 35 foot navigation improvement Project by the
USACE. A steering committee comprised of one member appointed by the governing
body of each of the participating agencies was formed to supervise the joint activities of
the IPA, and to hire personnel and contract for supplies and services under a budget
approved by the respective bodies for implementation by the steering committee. The
Stockton Port District exercised contracting authority and was appointed disbursing agent
for the steering committee and the JPA. Costs of operation were prorated among County
of Contra Costa(57.50%),the County of Solano (I 5.440/o), and the Stockton Port District
(27.016%). Any costs of operation in excess of the approved budget are borne by the
agency incurring them. The JPA could be amended or terminated by mutual consent or
upon thirty(30) days written notice by any of the parties.
The JPA agreement was amended by the participating bodies effective May 1,
1980 adjusting the proration of the costs of operation among County of Contra Costa
(40,00%),the County of Solano (20.00%), and the Stockton Port District(40.00%),
superseding in part the prior agreement all other terms of which remain in force and
effect. The JPA agreement as amended has never been further amended or terminated.
Although the proposed John F. Baldwin (Avon to New York Slough)and
Stockton Ship Channels Maintenance Assessment District 92-1 sponsored by the
Stockton Port District included parcels located in Solano County, as those parcels may
not be included within the scope of a proposed district sponsored under the JPA it is
proposed that rather than amend or supersede the existing JPA agreement a new
agreement between Contra Costa County and the Stockton Port District be formed for the
threefold purpose of:
(1) coordinating and providing the required local cooperation under the
Agreement;
(2) implementation of the John F. Baldwin(Avon to New York dough)and
Stockton Ship Channels Maintenance Assessment District 99-1 under joint
exercise of authority by both agencies as a mechanism of financial indemnity for
the sponsoring bodies; and
(3) performance of the necessary functions of site acquisition(ownership of
interest in real property), preparation, permitting, improvement, and maintenance
3
of aquatic and upland dredged material disposal sites by contract wherever
practicable subject to joint supervision under the JPA.
The JPA, as in the case of its predecessors, should recognize the affirmative
obligation of both parties under the Agreement and Amendment Number I to the
Agreement to provide local cooperation including lands, easements, rights of way and
dredged material disposal areas as a condition of the operation and maintenance of the
Project by the USAGE, and the eligibility of the Project for cost-sharing of required
improvements to aquatic and upland dredged material disposal sites under Section 201 of
the Water Resources Development Act of 1996(33 U.S.C. 2211(b);110Stat. 3671).
Under the JPA a new steering committee would be formed comprised of a
representative of the Contra Costa County Water Agency and Board of Supervisors, and a
representative of the Board of Commissioners of the Stockton Port District to supervise
the joint activities of the Authority.
As under the prior JPA, a joint administrative budget would be prepared and
approved by both bodies. Any amounts advanced or incurred by either body prior to
formation of the JPA concerning the John F. Baldwin(Avon to New York Slough)and
Stockton Ship Channels Maintenance Assessment District 99-1 would be reimbursed as
administrative expenses from amounts collected by the district. The proceeds of
maintenance assessments would be deposited in a project account maintained by Contra
Costa.County. Disbursements would be made by Centra Costa County from that account
for supplies and services by contract on behalf of the JPA. A strict accounting would be
maintained for any such expenditures and submitted to the steering committee.
The,TPA would provide for the joint exercise of authority and jurisdiction
applicable to local cooperation for the Project, and the levy and collection of benefit
assessments to indemnify the parties for costs and expenses incurred in providing local
cooperation under the Agreement utilizing either: (1) Streets and Highways Code Section
5820 of the Improvement Act of 1911 (Streets and Highways Code Sections 5000 and
following) as modified by Section 6365 of the Harbors and Navigation Code; or(2)
Chapter 2 of Part 7 of Division 15 of the`hater Code(Commencing with Section 51320)
without the intermediate necessity for the County as a general law county to establish a
harbor improvement district under Section 5839 and following of the Harbors and
Navigation Code.
The JPA could alternatively recognize and enforce, and afford credit as against
any benefit assessment levied for any payments made, in the form of harbor usage fees
levied under a tariff adopted by either of the Parties under its own authority or under
Section 208 of the Water Resources Development Act of 1986(33 U.S.C. 2235;100
Stat.4102).
IV. Maintenance assessment district procedure and scope of improvements
4
(a) Status of prior maintenance assessment district
The proposed John F. Baldwin(Avon to New York Slough)and Stockton Ship
Channels Maintenance Assessment District 92-1 sponsored by the Stockton Port District
was initiated under Ordinance Number 166 adopted on June 22, 1992. A Resolution of
Intention to form the maintenance assessment district, and a preliminary engineer's
report,was adopted by the Board of Commissioners of the Stockton Fort District on June
22, 1392. A published notice of intent to form the district was published in a newspaper
of general circulation in each county in which real property subject to assessment is
located, in addition to actual notice by first class mail to real property owners of record.
A boundary map was recorded in each county in which real property subject to
assessment is located. A public hearing was held on July 20, 1992, which hearing was
continued without adjournment until August 3, 1992 and September 14, 1992. A pending
Resolution of Confirmation of the assessment, assessment roll, lien on real property and
final engineer's report was not adopted by the Board of Commissioners. Further
proceedings were suspended at the formal request of the Contra Costa County Board of
Supervisors with the understanding that an alternative or similar mechanism to financing
one or more upland disposal sites would be adopted by the County at the request of the
identified private sector beneficiaries located in Contra Costa County.
(b) Use of prior engineer's report, ordinance, resolutions, and primary materials
The respective staff's recommend that in the nature of expediency, cost-
effectiveness, and equity that prior efforts and work product be utilized to the maximum
extent practicable and credit be given to previous administrative expenditures as
advances subject to recovery through a benefit assessment to be levied under the JPA.
The enactment of Proposition 218 in November 1996 codified in Article XIII C
and D of the California Constitution modified somewhat the procedure, due process and
time requirements governing formation of assessment districts.
In addition,the substantive impact of Proposition 218 is to circumscribe the
definition of special benefit(and hence likely affect the number of parcels subject to
assessment), and to require the levy of assessments on publicly owned parcels in the
absence of clear and convincing evidence of no special benefit to those parcels.
Procedurally the impact has been to reverse the burden of proof as to special
benefit, require an affirmative weighted ballot by the amount of the proposed assessment
as a substitute for the former negative majority protest, and set a minimum time between
marling of notice of the proposed assessment and a public hearing.
The practical effect of these changes to heighten the scrutiny in the determination
of the number of parcels subject to assessment, and potentially increasing the amount of
individual assessments as fewer parcels may be assessed, and militate in favor of
simplification of the benefit formula and factors relied upon to apportionspecial benefit.
5
The existing primary materials(and significant cost incurred) include aerial
mapping of parcels as the basis for the determination of the boundary map, and the
digitizing of assessor's parcel maps as the best means of determining the area and font
footage of parcels subject to assessment. All of this material, to the extent it remains in
useful condition, may be utilized in determining a revised boundary map and'individual
parcel acreage. Similar information for the Concord Naval Weapons Station, and perhaps
other publicly owned parcels, must be acquired as the basis for assessment of those
parcels even though in the case of the former any proposed assessment would be more
than offset by the Federal contribution to Project operation and maintenance.
Parcel ownership, boundary changes, lot splits, improvements, actual and
potential use data would have to be updated or acquired depending upon the number of
factors used to determine special benefit.
Given the uniformity of procedural requirements enacted in Proposition 218, in
lieu of an ordinance, the election of one of the alternative maintenance assessment
procedures contained in either the Streets and Highways Code as modified by the
Harbors and Navigation Code, or the Water Code in either instance as further modified
by Proposition 218 would be utilized.
In summary, a large part of the existing engineer's report once updated is likely to
be used as modified to comply with the substantive requirements of Proposition 218 as
they pertain to special benefit. Likewise,the prior resolutions may be utilized as well
subject to modification to reflect the procedural notice and ballot requirements of
Proposition 218.
(c)Procedural timeline
A proposed timeline for the joint and concurrent action of both bodies under the
TPA in establishing John F. Baldwin(Avon to New York Slough) and Stockton Ship
Channels Maintenance Assessment District 99-1 is set forth in Appendix 2 to this
Memorandum. This is intended both to comply with the procedural requirements of
Proposition 218 and to provide sufficient time in which to transmit a final assessment roll
to the respective County assessor in each county in order that maintenance assessments
may be collected in the same manner and at the same time as ad valorem property taxes
are collected in two annual installments.
The respective staffs worked out a proposed timeline that allows for the
preparation of a draft Preliminary Engineer's Report and adequate time for informal
review prior to the commencement of formal proceedings. In order to avoid the inherent
difficulties in scheduling joint hearings, it is recommended each body act independently
but concurrently under a joint exercise of authority under the JPA in the following
actions:
6
(1) Contra Costa County will authorize the execution of Amendment Number I to
the Agreement relying upon the concurrent adoption of the JPA and the
Resolution of Intention to form the maintenance assessment district C ROr')
thereby ensuring financial indemnity for costs and expenses incurred;
(2) Contra Costa County will concurrently execute the JPA followed by adoption
of the ROI based upon the joint exercise of authority under the JPA;
(3) Stockton Port District, in reliance upon the execution of Amendment Number
1 to the Agreement and concurrent adoption of the JPA and ROI by Contra
Costa County, will concurrently execute both the JPA and adopt the ROI;
(4) Each body will separately mail notices of the public meeting and public
hearing and ballot to owners of parcels subject to assessmentlocated within
their respective jurisdictions, and conduct separate but concurrent public
meetings and hearings in compliance with Proposition 218; and
(5) Each body will separately and concurrently adopt Resolutions of
Confirmation, mail notice of assessment to owners of record of parcels subject
to assessment, undertake cash collection, record liens, and transmit the final
assessment roll to their respective county assessor for collection along with ad
valorem real property taxes in installments.
(d) Assessment district formation and administration
A Maintenance District for channel improvements may be jointly established
under the joint authority of the JPA by Contra Costa County and the Stockton Port
District under:
(1) Streets and Highways Code Section 5820 of the Improvement Act of 1911
(Streets and Highways Code Sections 5000 and following);
(2)mater Code Sections 51320-51349.
(A)Proceedings under the Improvement Act of 1911
Section 5820 of the Improvement Act of 1911 defines maintenance district as an
assessment district, which the county board of supervisors or the legislative body of a city
has created.
Section 5101 authorizes the legislative body in the public interest,and
convenience to order improvements and related maintenance on inter alis... easements,
or rights of way, or tidelands, or submerged lands owned by any city, or tidelands or
submerged lands leased by the state to any city for the construction of improvements.
Section 5005 incorporates counties within the term cities.
7
Section 3101(m) incorporates the improvement and maintenance of channel
improvements among the scope of authorized improvements for purposes of that Act and
the Municipal Improvement Act of 1913 (Streets and Highways Code Section 10000 et
seq) as well.
A separate maintenance district is formed under Section 5821 of the Improvement
Act of 1911 through the adoption by the board of a Resolution of Intention to form a
maintenance district by the sponsoring legislative body that includes:
(i)a determination to order that maintenance expenses shall be assessed upon real
property lying within the proposed district that benefits from the maintenance of
the improvements with the assessments to be collected in the same manner as
taxes for county purposes;
(ii)the boundaries of the maintenance district;
(iii) directing the preparation of an engineer's report, boundary reap and
recordation, assessment roll, assessment diagram
(iv)method and consideration of protests; and
(v)notice of public hearing, publication and posting.
Following the public hearing, the sponsoring body would adopt a Resolution of
Confirmation:
(i) adopting the engineer's report;
(ii) ordering the maintenance to be performed;
(iii) levying the assessment;
(iv)confirming the assessment roll;
(v)ordering recording of assessment roll and diagram;
(vi)fixing the amount of assessment on each parcel; and
(vii) ordering mailing of notice of assessment to owners of record
The enactment of Proposition 218 in November 1996 codified in(Article XIII C
and D has modified somewhat the procedure, due process and time requirements
governing formation of assessment districts.
8
Sec 5(b)of that Act provides a blanket exemption for a new district imposed in
response to a petition signed by the persons awning all the property subject to an
assessment at the time imposed. Any subsequent increases must follow the general
procedure.
Procedurally, a ballot must now be mailed, along with the notice of public
hearing, which may not be held until after 45 days after mailing. There is a requirement
for a weighted majority of ballots in favor of a proposed assessment in order for it to be
approved and implemented. A finding of special benefit as under existing law is required
but the burden of proof is on the sponsoring body to demonstrate special benefit to
parcels beyond general benefit.
(B)Use of Water Code Sections 51320-51349 applicable by its terms to reclamation
districts for maintenance districts established by cities, counties, and special districts
were expressly authorized in SB 683 enacted in 1991.
As incorporated by reference in the Harbors and Navigation Coote, those
provisions may be used:
(i)for the operation and maintenance of projects, including maintenance of lands,
easements, rights of way, dredged material disposal areas, and remediation;
(ii) for the satisfaction of liabilities arising from projects;
(iii)to accumulate a fund which may be used to advance the cast of district
projects, provided that advances be repaid, with interest as determined by the
commissioners, for assessments, reassessments, special taxes, or;fees charged by
the district pursuant to this section;
(iv)to acquire real property, easements, or rights of way for a navigation project
or the maintenance of the navigation project; or
(v)to acquire real property within the district for the disposal of dredged material
Linder this procedure the board either sits as valuation assessment commissioners,
or appoints valuation assessment commissioners to prepare a report. The procedure
provides for the submission of a petition as well as by the board's own motion. Either
way a simplified version of an engineer's report is prepared that fixes an assessment
valuation per acre for each parcel in proportion to the benefits received from the
operation and maintenance of the completed improvement.
The report must include an assessment roll containing:
(i) a description of each parcel assessed by legal subdivisions, swamp-land
surveys, or other boundaries sufficient for its identity;
9
• A j�..r3'�
(ii)the number of acres in each parcel;
(iii)the names of the owners of each parcel, if known, and if unknown, that fact'
(iv)the assessment valuation per acre of each parcel assessed;
(v)the total assessment valuations of each parcel, exclusive of improvements
situated thereon;
(vi)a column for rate to be fixed by the board; and
(vii)a column for amount of assessment to be computed.
The draft report is filed with the county recorder.Notice and a public hearing are
required. Proposition 218 timing, notice, and voting requirements would apply to modify
the statutory procedure.
If an affirmative vote is received, the board would issue an order approving the
assessment valuation in the form of a rate based on cents per hundred dollars of valuation
which is multiplied by the total valuation of all parcels assessed to determine the
assessment per parcel o the assessment roll. The decision of the board is l final and
conclusive subject to thirty-day statute of limitations for judicial challenges.
(C) Apportionment of special benefit under either statutory scheme
(i)Under the requirements of the 1911 Act,the establishment of a maintenance
district requires the preparation of an engineer's report by a professional';engineer acting
as engineer of record. The mechanism for apportionment is a mathematical and narrative
formula taking into consideration factors that collectively are a best approximation of the
special benefit that each parcel obtains from an improvement or maintenance project. The
factors that may be used for a maintenance district of this type are set forth in the Harbors
and Navigation Code.
(ii) In the case of a valuation assessment under the applicable Water Code
provisions, benefit formula is required that includes land use category and other
categories for determination of benefit. Adjustments may be made for changes in land use
category over time.
(iii)In the case of either type of assessment,the Harbors and Navigation Code is
further amended to provide: Notwithstanding any other provision of law, any assessment
or reassessment levied pursuant to this section may be apportioned on the basis of land
use category tonnage shipped on the waterway, size and type of vessel using the
waterway, front footage, acreage, capital improvements, or other reasonable basis,
separately or in combination, as determined by the district commissioners.
10
Svc
Proposition 218, applicable to both 1911 Act maintenance assessments and Water
Code valuation assessments, requires a determination and distinction of special benefit
from general benefit, and shifts the burden of proof to the sponsoring legislative body on
that determination.
(D)Financial indemnity, liability, collection and enforcement
Imposition of 1911 Act maintenance assessments,Water Code valuation
assessments each results in a lien in the amount of the assessment on the parcel assessed.
Assessments are collected in the same manner as real property taxes and reflected
in the annual real property tax bill prepared by the county treasurer.
A maintenance assessment lien under the 1911 Act is enforceable against the
property subject to the assessment lien in a foreclosure action by the legislative body
brought in Superior Court within for years after the last installment is due(Government
Code Section 8830).
In a Water Code based maintenance district, an assessment levy is a lien upon the
parcels assessed,which bears interest 60 days after filing with the county recorder.
Assessment liens are enforceable by delinquency sale of the property subject to a
recorded lien on both bonded and unbonded assessments after publication of notice of
sale by the county treasurer(Water Code Section 51605).
(e) Scope of operation and maintenance costs subject to assessment and budget
requirement
One major area of the engineer's report that must be updated and supplemented is
the scope of operation and maintenance costs subject to maintenance assessment. Section
51320 of the Water Code anticipates that something on the order of a five year
maintenance plan is adopted by the sponsoring body as the basis for collecting in
advance, and depositing in a fund, amounts necessary for site acquisition and
improvement in lieu of bonded indebtedness to finance those costs.
In the case of the Stockton Port District, while many of the prospective costs may
be historically based with sites already acquired,the same is not true in the case of Contra
Costa County. Much has changed in six years in the regulatory landscape affecting the
likely cast and availability of candidate sites, as well as site improvement, maintenance,
and permitting costs. Fortunately early availability of the Winter Island site will not only
provide lead time before an additional site is needed but also valuable cost and expense
information with which to validate future cost projections unavailable six years ago when
the original preliminary engineers report was prepared.
11
In addition, Proposition 218 impacts the scope of the improvements subject to
assessment by virtually dictating the inclusion of the Federal contribution to Project
operation and maintenance and therefore the necessity of forecasting future expenditures
based upon historical data, and including those estimates in the five year budget
maintenance cycle.
It is anticipated that a number of parcels previously subject to assessment may be excluded.
E,g. Solano County parcels, while others such as publicly owned parcels included so that
the mix of parcels may be somewhat different from the prior proposed district. A number
of variations on the basic assessment formula will be used to fine tune the determination
of special benefit dictated by Proposition 218. It may be that parcels assessed may be
limited to waterfront and common ownership parcels pending further analysis.
One benefit zone reflecting two rate structures by reach and improvements linked
to each reach may be utilized.
An assessment methodology as to scope of improvements, operating budget,
proposed district boundary, and formula for apportionment of special benefit will be
developed by joint staff and consultants in consultation with the steering committee under
the JPA.
IV. Proposed budget for JPA and assessment district formation
(1) Administrative expenses(time and materials)
(a)Professional engineering services
Review primary materials aerial maps, digitized parcel maps for condition, suitability
Determine additional information necessary for acreage and front footage calculations
Update parcel ownership, lots splits, boundary changes, improvements, usage data
Review and update boundary map, assessment diagram, assessment roll
Review formula for determination of special benefit, parcels subject to assessment
Recalculate spread of assessment, apportionment of benefit
Revise five year maintenance budget to reflect historical numbers and both Federal and
local costs and expenses
Attend multiple public meetings and hearings
Estimated man hours: 170 @ $145.00/hr= $24,650
12
Miscellaneous costs and expenses:
Subcontract: Towill, Inc.: data conversion(CAD), additional parcel map digitization
Estimate$10,000.00
General miscellaneous expenses: $500.00
Printing costs Mylar boundary map, engineer's report: $500.00
Recordation Fees: $250.00
Mailing: 2 @$250.00 each=$500.00
Subtotal: $36,900.00
Legal/consulting services
(Excluding previously billed and unbilled amounts)
Update parcel snaps, legal ownership of parcels, parcel splits, boundary changes
Gather parcel map/interview data re publicly owned parcels
Draft JPA, revisions as necessary, and approval by both Parties
Liaison with USACESFD and HQUSACE re execution of LCA Amendment#1
Draft ROI, public notice, ballot
Assist engineer in drafting revised engineer's report including review boundary map,
assessment diagram, assessment roll
Joint development with assessment engineer and JPA staff in formulating assessment
methodology as to scope of improvements, operating budget, proposed district boundary,
and formula for apportionment of special benefit of parcels subject to assessment .
Liaison with County Counsel re agenda, procedure, review and revision of draft
instruments
Attend multiple public meetings and hearings before Contra Costa Board of Supervisors
and Board of Harbor Commissioners of Stockton Fart District for consideration of
authorization for execution of LCA Amendment# 1,
13
caw
Draft Resolution of Confirmation
No validation proceeding
No tariff development
Estimated man hours: 125 @ 200/hr=$25,000.00
Expenses:
Travel, per diem, miscellaneous expenses=$5,000
Subtotal: $30,000
Total admin expenses: $66,900.00
(b) Recapture of previous administrative expenditures to assessment
Stockton fort District
Aerial survey(Towle) direct payment(Pat Huff)
Parcel map digitizing(Towle) direct payment(Pat Huff)
Engineering services: billed/paid $25,000
Legal/consulting services: billed $27,500 paid $25,000
Unbilled est. $3,000.00
Contra Costa County
Unbilled
Background financial indemnity option memorandum prepared at request of private
beneficiaries $5200
Billed
Water Agency staff: x hours @ x$/hr. =$
County Counsel staff: x hours @ x$/hr= $
Total admin expenses subject to recapture= $
14
Exhibit 1
In Article II£ strike the language contained therein in its entirety and insert in lieu
thereof the fallowing.
(1)Except as provided in subparagraph(2)of this paragraph, all other provisions
of the LCA remain in full farce and effect.
(2) As requested by Stockton under Section 201(f) of the Water Resources
Development Act of 1996(110 Stat. 3673, 33 U S.C. 2211 note), the LCA is
amended to reflect the eligibility for cost-sharing of the cost of construction of
land based and aquatic dredged material disposal facilities required for the
operation and maintenance of the Project as a general navigationfeature under
Section 210(b)(2) of that Act.
I
01/18/1995 01:52 714902921000 AJAWPDMADGMAKN PAGE 01 �^
Date:January 9, 1999
From:Larry Mellon,Esq.
To:Roberts Goula4 Lex.Krygsman,Mike Cheney
Re:Revised timeline for establlabmant of Maintenance Assossment District 99-1
1.Picase find attached further Revised timeline for establishment of Maintenance Assessment District
99-1 predicated upon Board of Supervisors authorization to proceed with Draft Engineers Report on
January 19, 1999 and requirement for assessment district proceedings before the Board to be scheduled on
the second Ttwday of each month.It is assumed that the Harbor Commission continues to meet on
the first and third Monday#of each month.The infrequency of Board makings precludes the
scheduling of any public meeting other than the roquirrd public hearing.However,most beneficiaries are
will informed on the basis for the proposed assessment, In addition,if we wish to allow for one
continuation of the public hearing without ballots ging counted,we will need to verify that
forwarding of final assessment roll to County Assessor in San Joaquin County by August23 will
result in inelusion of assessment$in 1999-2M annual property tar bills,
2.Proposed'dates and action items:
(a) follow agreement of 8127 as to requirement for concurrent legislative action by County and
Harbor District on LCA modification,JPA,and ROVEngineer`s Report;
(b) follow procedural requirements of Proposition 218,and related statues,applicable to
maintenance assessment districts,
(c) incorporate f]xibilcy in terra of use of public meeting as communication tool,and potential
necessity for continued hearing to ensure ma*ity support,final adjustments,and 3043 days
allowance for schedule slippage on back end prior to transmitW of final assessment rail to
County atssesson
3. Revised timeline is incorporated in procedural memorandum previously transmitted.
3
01.118/1995 04:52 714962821000 AJAWPDMADGMA{NPAGE 02 s`'A
Exhibit 2
John F. Baldwin (Avon to New `York Slough) and Stockton Ship
Channels Maintenance Assessment District 99-1
Proposed Project Timeline (Rev 2)
Action Item ROT April 13-May 3, 1999
Submit Draft PMiminary Engineers Report
Marl► I9, 2 X99
Submit Final:Prelimtina y Enginees Report
April 2, 1999
Board of Supervisors Meeting
Authorizes execution Of'Amendment to Local Cooperation Apel 13, 199
Agreement w1tJSACE
Authorizes execution of Joint Powers Agreement
Approves too Preliminary Engineers Report
Adopts the Resolution of Intention
Approves Notice of Public Meeting„Hearing and BWlot
Board of Harbor Commissioners Meeting
.Authorizes execution of,joint Powcrs Agreement April 19, 1999
Approves the preliminary Engineers Report
Adopts the Resolution of Intention
Approves Notice of Public Meeting, Hearing and Ballot
Mail Public HedAng Notices and Ballots to property owners April l6, 1999
Contra Costa County
Mail Public Headrig Notices and Ballots to property owners
Stockton Port District April 23, 1999
Board of Supervisors Meeting
Conduct Noticed Public Hearing June 9, 1999
Approve the dual Enginctr's Report
Confirm Assessments
Approve thirty day notice
Board of Harbor Commissioners Meeting
Conduct tate Noticed Public Hearing Juste 21, 1993
Approve the Final Engineer's Report
Confirm Assessments
Approve thirty clay notice
Board of Supervisors Meeting(Continued Mtg.)
Conduct the Noticed Public Dearing July 13, 1999
Approve the Final Engineers Rept
1
01/18/1996 04:52 714962621000 AJAWPDMADGMAKN PAGE 03 -S
d
Confirm Assessments
Approve thirty day notice:
Board Of Harbor Commissioners Meeting(Continued Mtg.) July 19, 1999
Conduct the Noticed Public Hearing
Approve the Vi tal,Engineers Report
Confirm Assessments
Approve thirty day notice
Mail 30 DayQwh Collection Notice
Contra Costa County July 16, 1999
Mad 30 Day Cash Collection Notice
Stockton Part district July 23, 1999
30 Dtty Casty Collection Period Ends
Statute of limitations tolled
Rword assessment liens on real property
Contra Costa County August IS, 1999
3a DAY Cash Collection Period Ends
Statute of limitations tolled
/record assessment Netts on real property August 22, 1999
Stockton Port District
Final assessment roll to County assessor
Contra Costa County August 16, 1998
Final assessment roll to County assessor
Stockton Port Distriet August ; 1998
Start Collecting Aasessmerrts on Property Tax Roil
December 10,1999
April 10,2000,
2
1FY Cr. I
f
Contra
OF SUPERVISORS •' / �►
To. BOARD Costa
FROM: WATER COMMITTEE
SUPERVISOR TOM TORLAKSON, CHAIR County
SUPERVISOR SUNNE WRIGHT MCPEA,K
DATE: DECEMBER 15, 1992
SUBJECT: PORT OF STOCKTON ASSESSMENT DISTRICT
SPECIFIC REQUEST(S) OR RECOj-=NDATION{S} a BACKGROUND AND JUSTIFICATION
RZCOMMENDATIM
Declare that it is the intent of the Contra Costa County Board of
Supervisors to assume local sponsorship responsibility for the
portion of the Baldwin Ship Channel between Avon and New York
Slough, with the understnading that local industry will be held
responsible for costs associated with present and future
maintenance of the channel.
At the request of industry located in the east County area, the
County is looking into the potential for assumption of local
sponsorship of a portion of the Baldwin Ship Channel located
between Avon and New York. Slough. The Stockton Port Di
Port of Stockton Assessment District
Continued - Page Two
situation. Questions currently before the Corps are 1) can the
County assume Local Sponsorship responsibilities for this section
of the channel, and bj if not, can this section of the channel be
written out of the current contract which the Corps holds with the
Port of Stockton?
The Port of Stockton has given the County 6 months to accomplish
local sponsorship and financial assurance, prior to their
assessment district going into effect and has requested a 90-day
progress report, which is due 'December 21, 1992.'
RG:gms
�,x:��ixas-sx
r
r
November 17, 1992
Supervisor 'Sunne McPeak
Supervisor Tom Tourlakson
Water Committee of the Board of
Supervisors of Contra Costa County
651 Pine Street, Room 106
Martinez, CA 94553
Re: ealdwin Shia Channel
Dear Supervisors:
The below listed industries that currently use the Baldwin Ship
Channel, Avon to New Fork Stough (between the Benicia Bridge and the
Antioch Bridge), are pleased that. the Contra Costa County Board of
Supervisors is pursuing the effort to become the local sponsor of the
Ship Channel. These industries are willing to provide financial support
to the County under its obligations with the U.S. Army Corps of Engineers
in the event the County agrees to act as local sponsor for the Ship
Channel.
The industries propose to establish an account for use in paying
authorized expenditures incurred by the County in its role as local
sponsor. The authorized expenditures are to be the direct cost charged
to the County by the Corps of Engineers for the maintenance dredging on
the Baldwin Ship Channel, Avon to New York Slough.
The industries propose the following three-step method to provide
funding:
1. Initially, each industry will fund the account in the amount of
$1,000 annually for a total of $7,000 annually.
2. If authorized expenditures exceed the funds available, each
industry will increase its annual funding as needed 'up to $5,000
annually for a total of $35,000 annually.
v
'"Supervisors McPeak & Tourlakson
November 17, 1992
Page 2
3. Should the total of the account at the maximum direct funding
level be insufficient to pay the authorized expenditures, the
industries will cooperate with the County to establish a
mechanism such as a benefit assessment district for the
collection of necessary funds to meet the authorized
expenditures. The industries Will cooperate with the County to
establish an -equitable method to share the cost and to Collect
the funds.
Payment of bills from the Corps of Engineers are to be made by the
hank or accounting firm that will hold the account. The bills from the
Corps of Engineers are to be forwarded to the industriesfor approval.
Payments are to be made on a timely basis so that no late' fees or other
charges are incurred.
This letter is intended to set forth the industries' interests in
providing financial, support for the County's sponsorship. The obligations
of all parties are subject to the completion of an agreement that is
approved by the County and each of the industries.
We hope this letter clearly sets forth the industries` willingness to
cooperate with the County in its sponsorship of the Baldwin Ship Channel,
Avon to New York Slough.
Domtar Gypsum log
.' � .'.� '
Name
Company
The DowChemi -ajComoanv
Name Company
♦r Mid / �'F.� ^IML Y V M r Container Qorl2.
Name Company
Eacific Gas & EleCtric Co .
Name Company
�Z
• • ''Supervisors McPeak & Tourlakson
November 17, 1992
Page 3
bsco CorDoratiDn
Name Company
USS PQsQo Industries
Name Company
' Wickland Oil Martinez Limited
Partnershil2.
Name Company
MDG.cjs
0788MG