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Department of Transportation, Maintenance and Operations Division, recommending the Board adopt and authorize the Chair to sign Resolution 139-2025 to set a public hearing of all interested parties for or against the dissolution of the Sundown Estates Drainage Zone of Benefit 98378.
(District 4)
FUNDING: Sundown Estates Zone of Benefit Assessments. (100%)
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DISCUSSION / BACKGROUND
The Board formed the Sundown Estates Zone of Benefit #98378 (Zone) on January 8, 1991, by Resolution 12-91, in response to a petition submitted by the developer to form the zone, which satisfied the conditions of Tentative Map 89-1178 (TM89-1178). On October 30, 1991, the Board of Supervisors accepted the final map for the subdivision (page 59 of Subdivision Maps Book H) and rejected the drainage easements.
The Policy and Procedure Guidelines for Creation and Administration of Zones of Benefit Within a County Service Area, as amended September 10, 2024 (Guidelines), allow the Board to dissolve a zone of benefit when such action is in the best interest of the public. Proceedings may be initiated either by petition of property owners and/or registered voters, or by the Board.
Government Code Section 25217.2 authorizes the Board to dissolve a zone, following procedures in sections 25217 and 25217.1, as appropriate.
On June 8, 2021, the Board of Supervisors directed staff to fully recover all administrative and indirect costs associated with the Zone of Benefit program by equitably charging each zone its fair share of these costs (Legistar file 21-0781). Should a zone’s account balance fall below a minimal sustainable amount to cover insurance and administrative costs, the following options are available:
1) Pursue an election to increase the special taxes collected per parcel to cover the increasing costs of maintenance and administration; or
2) Dissolution of the zone.
On May 21, 2024, Department of Transportation (Department) staff mailed a notice to all property owners of the Zone, advising that it lacks the revenue to support the services required and County charges. The notice referenced the Board’s direction from June 8, 2021, and confirmed the Department’s intention to request the Board of Supervisors approve a ballot measure during the regular Board meeting on June 11, 2024, to replace the current benefit assessment with an increased special tax.
On June 11, 2024, the Board approved Resolution 094-2024 setting for election a ballot measure to replace the $100 benefit assessment with a $350 special tax per parcel during the November 5, 2024, Presidential Election. Measure M was presented to the electorate of the Zone and the results reflect that 81.25% of ballots cast were not in favor of the increased special tax.
The Department concurs that public interest no longer requires the Sundown Estates Zone of Benefit. At the request of staff, the Board scheduled a public hearing for November 18, 2025, at 9:00 a.m. to consider public comment against the dissolution of the Sundown Estates Zone of Benefit.
ALTERNATIVES
The Board may choose not to approve this Resolution to schedule a public hearing for the dissolution of the Sundown Estates Zone of Benefit; however, the Guidelines generally provide that the Board will schedule the hearing in the event of a zone’s account balance falling below a minimal sustainable amount to cover the services required and County costs.
PRIOR BOARD ACTION
See above Discussion/Background
OTHER DEPARTMENT / AGENCY INVOLVEMENT
County Counsel
CAO RECOMMENDATION / COMMENTS
Approve as recommended.
FINANCIAL IMPACT
There is no impact to the General Fund nor change to Net County Costs. The costs associated with dissolving the zone will be paid by the zone's revenue in Fiscal Year 2025/26. Per the Guidelines, any outstanding costs will be charged against the remaining assets of the zone. It is anticipated that there will be little to no excess funds remaining in the zone's account.
CLERK OF THE BOARD FOLLOW UP ACTIONS
1. The Clerk of the Board will have the Resolution recorded upon signature by the Chair; and
2. The Clerk of the Board will provide one conformed copy of the Resolution to the Department of Transportation, attention Elizabeth Hess, for further processing.
STRATEGIC PLAN COMPONENT
N/A
CONTACT
Rafael Martinez, Director
Department of Transportation