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Department of Transportation, Maintenance and Operations Division, recommending the Board adopt and authorize the Chair to sign Resolution 140-2025 to set a public hearing of all interested parties for or against the dissolution of the Barnett Business Park Lighting Zone of Benefit 98534.
(District 4)
FUNDING: Barnett Business Park Zone of Benefit Assessments. (100%)
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DISCUSSION / BACKGROUND
The Board formed the Barnett Business Park Zone of Benefit #98534 (Zone) on October 7, 1986, by Resolution 316-86, in response to a petition submitted by the property owners to form the zone for the purpose of funding street lighting services. No Advisory Committee was established for the Zone.
In 2000, installation and energizing of the street lights within the Zone boundaries were completed. In Fiscal Year (FY) 2000-01 and each year until FY 2007-08, the cost of the utility bills for the street lights exceeded the total benefit assessment for the Zone, depleting the reserve fund balance that had accrued between the years of 1990 and 2000 due to the annual shortfall of $2,633. The cost of providing street lighting services in the zone was ultimately subsidized by the Road Fund in FY’s 2007-08 and 2008-09, with the intent that the amount paid, totaling $3,111.20, would be repaid by the zone.
On July 29, 2008, the Board conducted an assessment ballot proceeding to consider an increase to the benefit assessment from $61 to $162 per parcel to cover the cost of providing street lighting services. This amount was based on an approved Engineer’s Report recommendation to better align the revenue with expenses.
At the public hearing and assessment ballot proceedings, a majority protest was received, and the measure failed. As a result, the Board determined it necessary to terminate the lighting services in the zone.
On July 31, 2008, a letter was mailed to each affected property owner advising that while the benefit assessment would not be increased, it would continue to be collected at $61 per parcel annually to pay outstanding charges subsidized by other County funds. This letter also provided details for the property owners regarding the process to contact PG&E should they desire to have the billings for the lighting pole on their property transferred into their name once the lights were de-energized on August 15, 2008.
Department of Transportation staff verified that all outstanding costs subsidized by other County funds were fully repaid as of FY 2011-12.
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. The Guidelines require that the revenue for each zone of benefit be an amount sufficient to pay for the extended County services for which the zone was established, including associated administrative and miscellaneous costs.
Government Code Section 25217.2 authorizes the Board to dissolve a zone, following procedures in sections 25217 and 25217.1, as appropriate.
The Department of Transportation concurs that public interest no longer requires the Barnett Business Park Zone of Benefit. At the request of staff, the Board scheduled a public hearing for November 18, 2025, at 9:00 am, to consider public comment against the dissolution of the zone.
ALTERNATIVES
The Board may choose not to approve the Resolution to schedule a public hearing for the dissolution of the Barnett Business Park Zone of Benefit. If the Board concludes that public interest requires the Barnett Business Park Zone of Benefit to remain active, then an analysis will need to be completed to determine the funding level required for a future election.
PRIOR BOARD ACTION
Legistar file 08-1093, 7/29/2008 - Majority protest received during assessment ballot proceeding. Staff was directed to turn off the lights due to insufficient funding.
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 account. Per the Guidelines, any outstanding costs will be charged against the remaining assets of the zone and the remaining funds may be transferred to the General Fund.
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