Consultant costs required to establish the Community Facilities District are paid by the involved developer, and all costs of administering the District would be covered by the voter approved special tax.  

Mello-Roos Community Facilities Districts are a mechanism to finance infrastructure and services for approved development projects. A voter approved special tax may be used to pay for eligible services, or to pay debt service on tax-exempt bonds issued by the District. The County has adopted a Debt Management Policy (adopted December 7, 2006 and last amended on March 22, 2022) which incorporates policies for Community Facilities Districts.  
  
The Hanover Company (the “Developer”) has secured County land use approvals to develop an apartment project in the Contra Costa Centre area (County Files GP18-0002, RZ18-3245, MS19-0010, DP18-3031). The approved project is a 6 story, 284-unit apartment project on an approximate 2.4-acre parcel at 3050 Del Hombre Lane, Walnut Creek. The project was approved by the Board of Supervisors on August 11, 2020.   
  
Condition of Approval #76 for the apartment project includes an obligation of the Developer to work with the County to form a Community Facilities District to provide annual revenue for the maintenance of parks and trails in the Contra Costa Centre Area, particularly the linear park known as Walden Green. The recommended action is the first step in establishing a Community Facilities District that would establish a Mello-Roos Special Tax to be paid by the Developer/Owner annually for park maintenance services. The tax for services would be an annual special tax to cover the costs of maintaining Walden Green. The special tax would initially be set at a rate of $143.33/residential unit, and would be indexed for inflation, and would be permanent. It has been determined that the best vehicle for generating the service tax is through a Mello-Roos Community Facilities District proceeding. Expenditures to be covered by the Special Tax may include payment of staff expenses (including salary, benefits, and overhead), and expenses related to the administration and collection of the special tax. The proposed Community Facilities District (Contra Costa Centre Area – Park Maintenance) has been established to allow the annexation of additional properties if desired by the property owner(s). The proposed boundary of CFD 2022-1 and a proposed annexation area for CFD 2022-1 is depicted on Attachment A.  
  
On May 24, 2022 the Board of Supervisors adopted a Resolution of Intention relating to the establishment of a Community Facilities District (Contra Costa Centre Area – Park Maintenance) with the adoption of Resolution 2022/173. The proceedings of May 24, 2022 expressly ordered the preparation of a written Community Facilities District Report which would contain a) a brief description of the services eligible to be funded by the Community Facilities District; and b) an estimate of the fair and reasonable cost of providing the services, including County administrative costs. The Community Facilities District Report included as Attachment B fulfills the requirement.  
  
This Board of Supervisors meeting of July 12, 2022 is the second meeting of the Board to consider formation of the Community Facilities District (Contra Costa Centre Area – Park Maintenance).The initial action of the Board at this meeting is to conduct the public hearing to inquire into the formation of the District, the services eligible to be funded, the levy of special taxes in the District, and the possible future annexation of territory into the District. Once the public hearing has been conducted the Board may consider adoption of Resolution No. 2022/243, a Resolution of Formation of County of Contra Costa Community Facilities District No. 2022-1 (Contra Costa Centre Area – Park Maintenance). This Resolution of Formation determines that the proposed special tax has not been precluded by majority protest, that the proceedings have been undertaken in conformance with California Law, names the District, approves the District boundaries, specifies the type of services eligible for funding by the District, and establishes an appropriations limit for the District. The next action of the Board is to call for a special election in the District. It does so by adoption of Resolution No. 2022/244, a Resolution Calling for Special Election Within Community Facilities District No. 2022-1 (Contra Costa Centre Area – Park Maintenance). Because the proposed District does not contain any registered voters, the landowner is the voter. The Hanover Company is the landowner and will cast the sole vote. The Developer will pay the Special Tax approved. Because this is a landowner vote, the Ballot will be available to be opened and the results announced on July 12, 2022. Assuming an affirmative vote by the landowner the Board would then adopt Resolution No. 2002/245, a Resolution Declaring Results of Special Election and Directing Recording of the Notice of Special Tax Lien. The Board also conducts a first reading of Ordinance No. 2022-24 entitled “Ordinance Levying Special Taxes within the County of Contra Costa Community Facilities District No. 2022-1 (Contra Costa Centre area – Park Maintenance). The Ordinance authorizes the levy of the Special Taxes, directs the Auditor-Controller and the Public Works Director to annually prepare the special tax levy, and to administer the collection of the special tax. At the August 2, 2022 meeting the Board of Supervisors would conduct a second reading of the Ordinance and adopt it. Because the special tax has been approved by the voter in conformance with the Government Code the requirements of Proposition 218 are satisfied. The August 2, 2022 meeting will conclude the public proceedings related to establishment of the District.  
  
The recommended actions conform to the requirements of the Mello-Roos Community Facilities Act of 1982, as amended (Chapter 2.5 of Part 1 of Division 2 of Title 5, commencing at Section 53311 of the California Government Code)  

Not approving the recommended action would result in the developer of the Del Hombre Apartments not fully complying with Conditions of Approval imposed by the County.