Title
HEARING - Department of Transportation, Maintenance and Operations Division, recommending the Board:
1) Conduct a public hearing to receive public comment of all interested parties for or against the dissolution of the Barnett Business Park Zone of Benefit 98534;
2) Make findings consistent with the County's Policy and Procedure Guidelines for Creation and Administration of Zones of Benefit within a County Service Area, as amended September 10, 2024;
3) If there is no majority protest, adopt and authorize the Chair to sign Resolution 169-2025; and
4) Approve the transfer of any remaining funds in the account to the General Fund. (4/5 vote required)
(District 4)
FUNDING: Barnett Business Park Zone of Benefit Assessments. (100%)
Body
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 to fund street lighting services, and it was not a condition of development. No Advisory Committee was established for the Zone.
In 2000, installation and energizing of the street lights were completed within the Zone boundaries. 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 Barnett Business Park Lighting Zone was ultimately subsidized by the Road Fund in fiscal years 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 increasing 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 Engineering 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 Barnett Business Park Zone of Benefit.
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. Per the Guidelines, any remaining funds may be transferred to the General Fund.
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, a public hearing will be held at the Board of Supervisors on November 18, 2025, at 9:00 am, to consider public comment against the dissolution of the Barnett Business Park Zone of Benefit. The Resolution of Intent to dissolve the Barnett Business Park Zone of Benefit was approved on October 21, 2025.
ALTERNATIVES
The Board may choose not to approve the Resolution 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
July 29, 2008, Legistar file 08-1903, Majority protest received during assessment ballot proceeding. Staff was directed to turn off the lights due to insufficient funding.
October 21, 2025, Legistar file 25-1199, Board approval of Resolution of Intent to Dissolve the Barnett Business Park Lighting Zone of Benefit
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. Any funds remaining as of June 1, 2026, will be transferred to the General Fund. The Department will return to the Board for approval of a budget transfer, if necessary.
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 certified 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