COUNTY OF SAN MATEO

Inter-Departmental Correspondence

Department of Public Works

DATE:

January 22, 2008

BOARD MEETING DATE:

January 29, 2008

SPECIAL NOTICE/HEARING:

None

VOTE REQUIRED:

Majority

TO:

Honorable Board of Supervisors

FROM:

James C. Porter, Director of Public Works

SUBJECT:

INITIATION OF THE PROCESS FOR THE FORMATION OF AN ASSESSMENT DISTRICT TO ADDRESS THE SCENIC DRIVE LANDSLIDE IN THE LA HONDA AREA (PROJECT NO. R2E01 – F-36 [256])

RECOMMENDATION:

A.

Adopt a resolution:

1.

Declaring the intention to order the construction of soil stability improvements within the Scenic Drive landslide in the La Honda area and to form an assessment district to assist in the financing of that construction;

2.

Authorizing the Director of Public Works to prepare an Engineer’s Report, meeting the requirements of Section 10204, of the Street and Highways Code, for the proposed assessment district.

B.

Adopt a resolution:

1.

Approving the Engineer’s Report;

2.

Setting a public hearing to consider any and all objections to the formation of said assessment district and the levying of assessments; and

3.

Directing the Director of Public Works to send to all property owners within the proposed district at least forty-five (45) days prior the public hearing:

a)

a notice of the time and date of said public hearing as provided by applicable law; and

b)

a ballot as provided by applicable law, which ballot may be used by the property owners to indicate their support or opposition to being assessed the cost of constructing said improvements.

VISION ALIGNMENT:

Commitment: Ensure basic health and safety for all.

Goal 7: Maintain and enhance the public safety of all residents and visitors.

This action furthers the above-mentioned commitment and goal by initiating the process to reconstruct lower Scenic Drive and improve the stability of the area supporting that roadway.

PREVIOUS BOARD ACTION:

1.

Adopted Resolution No. 069071, on October 30, 2007, authorizing the Department of Public Works to proceed with preparations for the construction of slope stabilization improvements (the “Improvements”) at the earliest opportunity during the next construction season, and continue to communicate and work with the La Honda community to identify cooperative funding arrangements and other potential funding sources. The Board discussed a potential County matching contribution of up to $3,000,000, but took no action in that regard.

2.

Adopted Resolution No. 069214, on January 8, 2008, authorizing execution of an agreement with Soil Engineering Construction, Inc., in the amount of $100,000, for developing plans and specifications for the slope stabilization improvements for the Scenic Drive Landslide.

DISCUSSION:

The Public Works Department has been working with La Honda community representatives from the Cuesta La Honda Guild and has drafted a report that supports the recommendation that an assessment district be formed to assist in the financing of the Improvements. The Improvements include the reconstruction of lower Scenic Drive and stabilization work to support that roadway. Consistent with applicable provisions of the Streets & Highways Code, the Board must first authorize the report to be filed with the clerk of the Board in order for the Board to properly consider the report.

The report (the “Engineer’s Report”) filed with the clerk meets the applicable statutory requirements, and includes the calculation of the assessments for each parcel within the boundary of the proposed district by estimating the cost of repayment over a 15-year time frame. The assessment district boundary follows the boundary of the La Honda community east of Highway 84, as identified in the Engineer’s Report. Every parcel in the proposed assessment district is a tax assessor’s parcel (a “parcel”) and benefits from an improved roadway system (i.e., the reconstruction of lower Scenic Drive) and those properties closest to the physical location of the improvements get an incidental additional benefit to the extent that the associated land and roadway stabilization work and improvements help to stabilize those properties.

The Board may confirm, approve, modify or correct the Engineer’s Report, as it may determine. Once the Engineer’s Report is approved, the Board may set the public hearing and ballots that meet the requirements of Section 53753 of the Government Code will be mailed to the property owners together with a letter explaining the proposed assessment district.

The Department recommends that a public hearing be set to hear any and all protests on the formation of the assessment district and the levying of assessments. The ballots would be opened and tabulated after the close of the public hearing. The Clerk of the Board is qualified to tabulate the ballots.

If the assessment District is formed and the assessments levied, the Department will move forward with the construction of the slope stability improvements, including the reconstruction of lower Scenic Drive. The County would provide a total contribution of $3,000,000 -- $117,765.92 as assessments for the County-owned parcels within the assessment district, plus $2,882,234.08 as an additional contribution. Payments for the Improvements would come from County and assessment district funds in the ratio represented by their totals, so that for every $1,000 spent approximately $470 would come from the County’s additional contribution and $530 would come from the assessment district.

FISCAL IMPACT:

Based on a total estimated project cost of $6,122,500, which includes a contingency of $857,206.25 (approximately 16%), the assessment for each parcel has been calculated on a per parcel basis with all parcels assessed as either a Zone 1 parcel or a Zone 2 parcel. The 23 parcels situated closest to the active slide area (“Zone 2”) would be assessed at $11,216.01 per parcel. The remaining 532 parcels (Zone 1) would be assessed at $5,605.82 per parcel. Based on a 15-year payment with interest at 5% per year, the “not-to-exceed” annual assessment payment Zone 1 is $540.06 per parcel per year; the “not-to-exceed” annual assessment payment for Zone 2 is twice that, or $1,080.10 per parcel per year. The calculations are included in the Engineer’s Report. The County holds title to ten (10) of the Zone 2 parcels and one (1) Zone 1 parcel.

The Government Code requires that property owners be notified of the maximum assessment to their property. As noted, the assessments as calculated include a contingency, and any surplus funds remaining in the assessment district’s improvement fund after all of the Improvements have been completed, will be applied as a credit to the assessed properties. If the assessments prove insufficient to complete all of the Improvements, those improvements not required to restore lower Scenic Drive will be re-engineered to accommodate the available funds.

The initial impact to the General Fund is as follows:

Soil Engineering Construction, Inc. Design Contract

$100,000

Staff Time for Assessment District Election Process

$20,000

These General Fund expenditures are included in the costs to be covered by the assessment district once it is formed. The General Fund will not recoup the funds advanced if the assessment district is not formed.

The County’s assessment would be $112,160.10 for Zone 2 parcels, plus $5,605.82 for its Zone 1 parcel, for a total of $117,765.92. In addition to any assessment of County owned property lying within the assessment district, if an assessment district is formed and the assessments are paid, a portion of the costs and expenses of the Improvements is to be paid by an additional County contribution. The total County contribution, inclusive of any assessments paid by the County as part of the assessment district, is not to exceed Three Million Dollars ($3,000,000).

The resolutions have been approved as to form by County Counsel.