COUNTY OF SAN MATEO

Inter-Departmental Correspondence

Department of Public Works

 

DATE:

July 21, 2008

BOARD MEETING DATE:

August 12, 2008

SPECIAL NOTICE/HEARING:

None

VOTE REQUIRED:

Majority

 

TO:

Honorable Board of Supervisors

FROM:

James C. Porter, Director of Public Works

SUBJECT:

Resolution Approving Zero Tax Exchanges for Annexation of Skyline Frontage Road, Black Mountain Road and Golf Course Drive to the Town of Hillsborough

 

RECOMMENDATION:

Adopt resolution making a determination of zero property tax exchange pursuant to the California Revenue and Taxation Code section 99 et seq., for annexation of Skyline Frontage Road, Black Mountain Road and Golf Course Drive to the Town of Hillsborough.

 

VISION ALIGNMENT:

Commitment: Responsive, effective and collaborative government.

Goal 22: County and local governments effectively communicate, collaborate, and develop strategic approaches to issues affecting the entire County.

 

The proposed annexation will result in these roads being located within one jurisdiction, which will allow a single entity to enforce traffic regulations and provide improvements in this area.

 

BACKGROUND:

Skyline Boulevard was realigned in conjunction with the construction of Interstate 280 by the State of California. This realignment resulted in some portion lying partially within the Town of Hillsborough and the majority within the unincorporated area.

 

DISCUSSION:

Hillsborough has contacted the County regarding the installation of Town entrance improvements on Golf Course Drive at Skyline Frontage Road. Similar to the annexation of the intersections of Summit at Skyline and Chateau at Skyline in recent years, the Town initially proposed to annex the intersection of Golf Course Drive at Skyline Frontage Road for the entry improvements. This would make the County roads further disjointed. Public Works suggested that since there is no existing or potential development in the unincorporated area within the vicinity, the Town of Hillsborough should annex the entire road area adjacent to the Town to further minimize jurisdictional operation conflicts in the area. Town staff agreed that annexing the total road area is appropriate, and hence has submitted an annexation application to the Local Agency Formation Commission (LAFCO).

 

Sections 99 et seq. of the Revenue and Taxation Code require the entities involved in an annexation to present resolutions to LAFCO indicating their agreement to the exchange of property taxes associated with an annexation, prior to LAFCO taking any action on the annexation, even though no property taxes are involved. On April 18, 2006, the Board adopted Resolution No. 67935, which provides that no property tax revenue will be transferred from the County of San Mateo to any city in the County for annexations solely involving a roadway. While a major portion of the areas proposed for this annexation is a roadway, the area also includes an undeveloped parcel adjacent to Skyline Frontage Road owned by the San Francisco Public Utility Commission as part of its watershed to the Crystal Spring reservoirs. No property tax is collected for this parcel, and therefore, no property tax will be involved.

 

The resolution has been approved as to form by County Counsel.

 

FISCAL IMPACT:

There will be anticipated annual maintenance costs savings of approximately $22,990 per year to the Road Fund. This estimate is based on 0.97 miles of road being annexed to the Town and an average cost of $23,700 per mile per year to maintain the County road system. There will also be a slight reduction of gas tax revenue due to the decrease in County maintained mileage because the bulk of the gas tax revenue to the County is based on the number of registered vehicles in the County.

 

There is no impact to the General Fund.