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C. 5

To:	Board of Supervisors
From:	Brian M. Balbas, Public Works Director/Chief Engineer
Date:	December 6, 2022

Contra

Costa

County

Subject:

APPROVE the Fiscal Year 2022/23 Budget for Dougherty Valley Maintenance for County Service Area M-29, San Ramon (Dougherty Valley) area.

APPROVE	OTHER
RECOMMENDATION OF CNTY ADMINISTRATOR	RECOMMENDATION OF BOARD COMMITTEE

Action of Board On: 12/06/2022

APPROVED AS RECOMMENDED

OTHER

Clerks Notes:

VOTE OF SUPERVISORS

AYE:

John Gioia, District I Supervisor
Candace Andersen, District II Supervisor
Diane Burgis, District III Supervisor
Karen Mitchoff, District IV Supervisor
Federal D. Glover, District V Supervisor

Contact:	Larry Gossett (925) 313-2016
cc:	Jocelyn LaRocque- Engineering Services Larry Gossett- Engineering Services Monica Nino- County Administrator Robert Campbell, Auditor Controller Michelle Gonsalves - Finance Chris Low - City of San Ramon Candace Daniels - San Ramon Finance Manager Francisco & Associates, Inc.

I hereby certify that this is a true and correct copy of an action taken and entered on the minutes of the Board of Supervisors on the date shown.
ATTESTED: December 6, 2022
Monica Nino, County Administrator

BY:	, Deputy

RECOMMENDATION(S):

APPROVE the Fiscal Year (FY) 2022/23 Dougherty Valley Maintenance County Service Area M-29 budget totaling $27,502,372 as summarized in Exhibit 1, as recommended by the Public Works Director, San Ramon (Dougherty Valley) area. (District II)

FISCAL IMPACT:

100% County Service Area M-29 Funds.

BACKGROUND:

Dougherty Valley is an 11,000 +/- unit development that was approved by and is being processed through Contra Costa County. This territory is annexed into the City of San Ramon as Final Maps are approved, and improvements are accepted as complete. Dougherty Valley began construction in 1996 and currently 100% of the homes have been annexed into San Ramon.

BACKGROUND: (CONT'D)

A 1994 Settlement Agreement allowed for the development of Dougherty Valley and laid out a plan to provide long-term operation and maintenance of the increased municipal services provided in Dougherty Valley. These increased services include Police Protection, Park Maintenance, Landscape Maintenance, Street Lighting, increased Library Services, and the operation and maintenance of 3 Community Facilities Buildings (Community Center, Senior Center, and Service Center).

In a 1997 Memorandum of Understanding between Contra Costa County and the City of San Ramon, it was decided that these increased services would be provided by the City of San Ramon and reimbursed through property tax revenue and special assessment revenue. CSA M-29 was created in 1998 to collect this property tax revenue and special assessment revenue from the properties within Dougherty Valley. At the end of the fiscal year this property tax revenue and special assessment revenue is reimbursed to the City of San Ramon.

In addition, the Dougherty Valley Maintenance Budget includes other revenue generated from the properties within CSA M-29 which include sales tax, real property transfer tax, fines and forfeitures, motor vehicle fees, permit fees, franchise fees, and contributions from the City of San Ramon General Fund.

On December 20, 2005, the Board of Supervisors approved a Reimbursement Agreement between the County, the City of San Ramon, Shapell Industries and Windemere BLC Land Company to provide reimbursement to the City of San Ramon for providing services within the boundaries of Dougherty Valley.

The Reimbursement Agreement outlined the annual process for the City of San Ramon to receive reimbursement of funds for services rendered in Dougherty Valley. The process laid out in the agreement calls for the annual budget for Dougherty Valley Maintenance to be approved at the San Ramon City Council level and then subsequently approved at the County Board of Supervisors.

On May 24, 2022, by Resolution 2022-079, the San Ramon City Council approved the FY 2022/23 citywide operating and capital budgets including line items for the Dougherty Valley Maintenance which totaled $27,502,372 in expenses.

CONSEQUENCE OF NEGATIVE ACTION:

The Dougherty Valley Maintenance budget will not be approved and the City of San Ramon will not receive reimbursement for city services performed in Dougherty Valley as agreed to under terms of the Reimbursement Agreement and the 1994 Settlement Agreement.