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Community Development Agency, Transportation Division, recommending the Board consider the following:
1) Find that the Application to expand the powers within County Service Area 5 for road maintenance services is categorically exempt from California Environmental Quality Act, Exemptions 15301 and 15378(b)(4); and
2) Adopt and authorize the Chair to sign Resolution 199-2016 making application to the El Dorado Local Agency Formation Commission for an expansion of powers within County Service Area 5 for road maintenance services, and authorizing the Director of Transportation to sign said Application and all other relevant documents for submission to LAFCO.
FUNDING: Current fund balance within County Service Area 5.
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DEPARTMENT RECOMMENDATION
Community Development Agency, Transportation Division (Transportation), recommending the Board:
1) Find that the Application to expand the powers is categorically exempt from California Environmental Quality Act, Exemptions 15301 and 15378(b)(4); and
2) Adopt Resolution 199-2016 thereby authorizing:
a. Submission of an Application to the El Dorado Local Agency Formation Commission (LAFCO) for an expansion of powers, namely road maintenance services within County Service Area (CSA) 5;
b. Director of Transportation to sign said Application and all other relevant documents for submission to LAFCO;
c. Direct that LAFCO approval of the expansion of powers and the Certificate of Completion shall be recorded when the expansion of powers conditions have been fulfilled; and
d. Direct a certified copy of the adopted Resolution be filed with LAFCO.
DISCUSSION / BACKGROUND
CSA’s provide the County with a method to finance and provide needed services to the residents and property owners within unincorporated areas. A CSA’s funding is established at the time it is formed and comes from a portion of the property taxes collected from the various properties within the CSA. A CSA also has “powers” that establish the types of services that can be provided with CSA funding. For a CSA to provide for a new power or service, a Resolution making application must be obtained and an Application submitted to LAFCO. The Application will go through a review process by the County Assessor and Auditor's offices, LAFCO, as well as a public notice and public hearing at both the El Dorado County Board of Supervisors and LAFCO. This process could take as little as nine months or up to a year.
CSA 5 was established by the County in 1970 by Board Resolution 171-70 (adopted May 6, 1970), during the development of the Tahoe Cedars Subdivision, to address drainage concerns in the area. At that time, a property assessment rate was established and placed on the ad valorem tax bills for properties located within the CSA 5 boundaries. Transportation is requesting an expansion of the powers of CSA 5 to include road maintenance, specifically to allow for CSA 5 revenues to be used for general road maintenance. Work will be planned based on need, pavement condition, and available CSA 5 funding.
Transportation is not proposing to increase the current CSA 5 assessment to cover the cost for these new powers, and believes that based on current activity in CSA 5, the current assessment is sufficient to cover the cost of maintenance activities and, if there isn’t enough CSA 5 funding to cover needed activities, funding will be supplemented by the Road Fund. In order to provide road maintenance services within the current CSA 5 boundaries, an application must be submitted to LAFCO for an expansion of powers to include road maintenance.
Annual revenues for CSA 5 have been approximately $46,409 based on a ten-year average. After completion of the current CSA 5 drainage project, there will be approximately $481,000 in available CSA 5 fund balance. There are sufficient appropriations within the FY 2016-17 budgeted use of Fund Balance to pay the estimated LAFCO initial deposit fee of $3,000.
ALTERNATIVES
The Board could choose to not adopt this Resolution of application for an expansion of powers within CSA 5. Without the expansion of powers and the reallocation of funds, maintaining the roads in CSA 5 will be more difficult.
OTHER DEPARTMENT / AGENCY INVOLVEMENT
Assessor’s Office, Auditor/Controller’s Office, and LAFCO
CAO RECOMMENDATION
Approve the Department's recommendation.
FINANCIAL IMPACT
There is no impact to Net County Cost associated with this item. Funding is provided by CSA 5, within existing FY 2016-17 appropriations.
CLERK OF THE BOARD FOLLOW UP ACTIONS
1) The Clerk of the Board will obtain the Chair’s signature on two (2) originals of the Resolution.
2) The Clerk of the Board will certify one (1) fully executed original of the Resolution.
3) The Clerk of the Board will forward the certified, fully executed original of the Resolution to the Community Development Agency, Transportation Division, attention Bard Lower, for further processing to LAFCO.
STRATEGIC PLAN COMPONENT
Infrastructure
CONTACT
Bard R. Lower
Transportation Division Director
Community Development Agency