HomeMy WebLinkAbout7.1 DSRSD Study CITY OF DUBLIN
AGENDA STATEMENT
CITY COUNCIL MEETING DATE: November 24, 1986
SUBJECT Report from Liaison Committee Re : Dublin San Ramon
Services District Study
EXHIBITS ATTACHED Letter from the City of San Ramon City Manager dated
November 4, 1986 ; Conclusions and recommendations of
the City Council of the City of San Ramon re : the
assumption of services from the Dublin San Ramon
Services District ; revised fiscal impact analysis of
Hughes , Heiss & Associates ,
RECOMMENDATION It is the Committee ' s recommendation that the City
Council consider the alternatives identified below and
take appropriate action.
FINANCIAL STATEMENT:
DESCRIPTION At its meeting of -Tovember 10, 1986, the City Council
directed its Liaison Committee with San Ramon to meet with San Ramon and
clarify the San Ramon City Council ' s recommendations regarding the ultimate
disposition of the Dublin San Ramon Services District . At the conclusion of
the Liaison Committee meeting , the Dublin Liaison Committee representatives
agreed that there are three basic alternatives which the City Council should
consider . These are briefly described below.
I . Dissolution of the Dublin San Ramon Services District as
recommended in the Dublin/San Ramon Committee report presented to the Dublin
City Council in July 1986 , and adopted by the Dublin City Council .
Dissolution of the District would involve a proceeding with the Local Agency
Formation Commission and would be contingent upon the unanimous consent of
the Board of Directors of the Dublin San Ramon Services District or a
successful election among District voters approving the Dissolution.
II . Concurrence with the City of San Ramon ' s recommendations
.regarding the disposition of the Dublin San Ramon Services District . The
San Ramon proposal basically provides for the assumption of the DSRSD park
and fire responsibilities , and certain sewer responsibilities . Any further
consideration of the assumption of sewer and water planning , operation, and
maintenance responsibilities would be deferred until June 30, 1993 .
The San Ramon proposal would be accomplished as follows.
A. Lease agreements would be prepared between the District and each
City for park and pool facilities within each respective City . Effective
January 1 , 1987 , the City would have total responsibility for maintanence ,
facility scheduling , setting of user fees , and capital improvements in the
parks . The term of the lease agreement would be long term i .e . 99 years .
The lease would be terminated and permanent title and park responsibility
transferred to the Cities , once the District and Cities were legally assured
that those general property tax funds now collected by the District would be
distributed to only the Cities of Dublin and San Ramon.
B. A Joint Powers Authority ' (JPA) would be formed between the City
of Dublin , City of San Ramon , and the Dublin San Ramon Services District to
assume responsibility for the provision of fire services to the City of
Dublin and to those properties within the Dublin San Ramon Services District
and the City of San Ramon . The JPA would be formed on March 1 , 1987 and
would assume complete operational responsibility for the Fire function July
1 , 1987 . Between March and July , the JPA would approve any budget transfers
related to the fire function and would probably select a new fire chief to
replace the current District Fire Chief , who will be retiring . As with the
----------------------------------------------------------------------------
COPIES TO: Jim Robinson
ITEM NO. �► �,�1._
parks , DSRSD would withdraw from the Fire JPA and give up any claim and
participation with respect to the fire function , once it was assured that
general property taxes presently received by the District would go only to
the Cities of Dublin and San Ramon.
C. Sewer and water services would continue to be provided by DSRSD
at least until June 30, 1993 with the exception of the folowing.
1 . , Each City would receive a sewer capacity allocation set by
contract with the District . Presently , the District has a pool of permits
available to property owners within the District , which are issued on a
first come , first serve basis . It should be pointed out that such a
capacity allocation may unnecessarily delay property development within one
jurisdiction , if one jurisdiction develops faster than the other .
2. Sewer permits would be issued by Cities in order to increase
the number of services provided to the development community in one
location .
3 . Cities would collect the fees for sewer permits and the
District would charge each City for sewer capacity associated with those
permits issued .
The deferral of further studies or recommendations regarding complete
assumption of sewer and water services by the Cities from the DSRSD until
June 30, 1993 is based on the assumption that the TWA (Tri Valley Wastewater
Agency) will complete its work to provide for the long term sewage capacity
needs of the valley by that date .
D. Funding for park and fire responsibilities as outlined above
would be provided for as follows .
1 . On January 1 , 1987 , the District would transfer to the
Cities all current general fund revenues which are not budgeted for fire
services for the remainder of Fiscal Year 1986-87 . The District would also
transfer all general fund reserves , (except fires reserves) , park dedication
fees , Altamont fees and reserves , and all other trust funds pertaining to
the parks and recreation functions as of June 30 , 1986 ..
2 . On July 1 , 1987 , the District will transfer all general
funds directly to the Cities . The fire capital reserves would be
transferred to the JPA.
The fiscal impact on the Cities implementing this proposal as proposed by
San Ramon is shown in the revised Fiscal Impact Study prepared by John
Heiss . This study indicates that the City of Dublin would have to subsidize
the parks for the last half of Fiscal Year 1986-87 and Fiscal Year 1987-88
in the amount of $5 , 739 and $41 , 773 respectively . Staff believes that the
net subsidy shown in Fiscal Year 1987-88 could be as much as $80 , 000 because
the Heiss report overstates interest revenue . Heiss assumes $184 , 500 in
interest revenue generated from $1 , 500 , 000 in reserves . Given the current
investment market , interest income of the total reserves may be closer to
$105 , 000. In Fiscal Year 1988-89 , Heiss estimated that the City of Dublin
would have net revenue of $36 , 073 . Again , this figure may be high because
of overestimating interest income .
Heiss did indicate that the City subsidy to park maintenance could be
eliminated , if the Cities chose to utilize reserves transferred by the
District to the Cities "until property tax revenues related to DSRSD ' caught
up ' . " This proposal is predicated on the concept that a Fire JPA could be
successfully created in accordance with the time frame identified above .
With respect to funding fire services , the Cities would have the
responsibility of tranferring sufficient funds to the Fire JPA for the JPA
to operate on an annual basis .
With respect to the San Ramon proposal regarding sewer permit issuance , if
the City were to recover the cost of issuing permits , the total sewer permit
fee may increase if the District did not correspondingly reduce its charges
to each City for permits .
III . The Dublin Committee also identified a third alternative which
provides for the assumption of park and fire services by the Cities only
after the Cities were legally assured that all property taxes presently
collected by the District would be distributed to the Cities. Decisions
regarding sewer and water would be deferred with no date certain. If the
District and San Ramon agreed , this alternative would work as follows .
A. The Cities of Dublin and San Ramon would immediately begin
drafting a two member JPA to provide fire services .
B. Simultaneously , the District would request the Board of
Supervisors of Alameda County and Contra Costa County to negotiate the
distribution of property taxes on the Di.strict ' s behalf .
. If the Counties agreed to pass through the entire property tax to the
Cities , the transfer of the title to the parks to the Cities and the
transfer of fire service would occur . If one or both of the Counties chose
not to distribute all property taxes presently received by DSRSD, the Cities
could seek a judical determination by filing a Declaratory Relief Action for
the purpose of clarifying the law. The City Attorney ' s Office has indicated
that these actions have precedent and could be resolved in three (3) to six
(6) months . If the Cities receive a favorable determination by the Court ,
the transfer of fire and parks would occur ; if not , the San Ramon proposal
could be implemented .
This alternative is viewed as being preferable to San Ramon ' s proposal for
the following reasons .
1 . The Cities would incur no costs until income to provide parks and
fire services was guaranteed .
2 . The Cities should not assume the obligation of parks and be
required to subsidize the parks , while there is still yet the possibility
that Dublin and San Ramon might not be able to agree to terms in forming a
Fire JPA . The Fire JPA must be formed as a first step.
3 . The Cities may incur substantial costs in implementing San
Ramon ' s proposal in addition to the associated costs required in assuring
that property taxes will not be lost by the Cities .
4 . The time frame in the San Ramon proposal is too short and
unrealistic with respect to implementation .
5 . The Cities cannot agree to deferring sewer and water services to
June 30, 1993 , because legally neither City can bind the action of future
City Councils . Therefore , this alternative defers consideration of the
sewer and water service with no specific date .
p
s
v
- A.,dty- of San Ramoks
2222 Camino Ramon
San Ramon, California 94583
(415) 866-1400
November 4 , 1986
Rich Ambrose, City .Manager
City of Dublin
6500 Dublin Blvd
Dublin, CA 94568
Dear Rich:
At a special meeting of the San Ramon City Council held
November 3 the Council considered a report from -the Council DSRSD
liaison committee -regarding the conclusions and recommendations
for transfer of General Fund services from the District to the
Cities of Dublin and San Ramon. In addition, the City Council
considered supplemental information from Hughes ," Heiss and Associates
indicating that the DSRSD financial reports as of June 30 , 1986 will
provide for a General Fund that still has a reserve of at least one
million, dollars in unallocated reserves . To the extent that these
funds are transferred to the cities they would be available to
offset any required subsidies until property tax revenues previously
related to the Dublin San Ramon Services District catch up. Attached
are the conclusions and recommendations of the report presented to
the City Council in outline form. The City Council adopted the
attached conclusions and recommendations in cone and instructed
both the liaison - committee and staff to continue meeting with the
District liaison and City of Dublin liaison to discuss these
conclusions and to prepare an agreement providing for implementation
of these -recommendations and creation of a Joint -Powers Authority.
As we discussed on the phone earlier today, I have made myself
available this afternoon to discuss this proposal and answer any
specific questions that you may have before presenting this proposal
to either your liaison .or City Council or Board.
Sincerely,
m Robinson /
ity Manager
JR/jm
CC : San Ramon City Council liaison
A. GENERAL FUND
1 . Parks and Recreation
a. Parks to be transferred or, if .legally infeasible to
transfer, to be leasedto cities reserving the decisions
relating to maintenanc ; scheduling; setting fees and
capital improvements to the cities as of January 1 , 1987 .
b. All general -funds less those budgeted for fire for balance
of fiscal year will be transferred January 1 , .1987 . -All
general funds to include. park dedication fees and other
trust funds pertaining to parks and recreation plus Altamont
fees and reserves as of June 30, 1986 .
C. General funds received by DSRSD after January 1 , 1987 less
amounts retained to satisfy fire budget requirements will
be transferred upon receipt.
d. Cities will provide maintenance and park and recreation
services, tract,:
e. , DSRSD will not charge administrative fee to administer
coast=ac't . ,
I 2 . Fire
a. JPA will be formed and become operational March 1 , 1987 .
b. JPA will consist of five members - two from each city
and 'one from DSRSD.
c. JPA will assure operational responsibility of the Fire
Department July 1 , 1987 . All budget classification changes
and. interclassification budget transfers for the period of
March 1 , 1987 - June 30 , 1987 will be approved by the JPA.
i
d�. E!ffectivTi July; 1 , 1987 DSRSD will transfer all general
fund's to -cities . All funds encumbered for fire services ,
capital, etc. would be transferred to the JPA.
e. DSRSD will .not charge any administration fee to the JPA
for participation.
3 . Sewer and Water
a. . Sewer capacity allocation will be set by contract with
the cities .
b. Sewer permits will be issued by the cities . Cities will
individually set the fees to be charged for the permit .
c., DSRSD would charge each city for sewer capacity associated
with the permits used .
B. DSRSD will divest itself of any .claim, right or responsibility
to the park':and recreation and fire protection functions including
removing ',itself from the JPA when assured that the general property
tax funds now collected will not be distributed in whole or in part
to other agencies . DSRSD will assist in obtaining legal opinions
and legislation necessary to implement this proposal.
C. All existing contracts with P.E:R.S.- and labor organizations will
be honored.
D. Future studies or recommendations of divestiture of sewer and
water services are deferred by agreement through June 30 , 1993 .
i
.-a..v..;ynr_rm,ow.ua..c:x.:.)r_,er.,,•rs.. ...w n t:: '.. ,-v...._ ..:a..:,n.a :.N')t...I.w. <'..-.. t:: ... �.... .........-.... _
Y
f FROM 1-1-87 THROUGH 6-30-87**
i
l
r"
r
ITEM TOTAL TO DSRSD TO DUBLIN TO SAN RAMON
Revenue
Property Tax $1,401 ,100 $1 ,070,200 $172,068 $158,832
Interest 92,500 92,500 - -
I nt.Gov.Fees 12,000 12,000 - -
Al tamont Dump Fees 112,000%"'4 112,000 - -
Aquatics Fees 75,000 - 28,950 46,050
Field Use Fees 12,750 - 6,834 5,916
Gen' I.Govt. 4- 35,000 35,000 - -
Miscellaneous* 20,000 - - 20,000
TOTAL $1 ,321 ,700 $207,852 $230,798
Costs
Fire $1,321 ,700 $1 ,321 ,700 - -
White House/
Shannon Maint. Costs Allocated - $ 15,600 $ 14,000
Park Maint. Based on Park - 136,668 131.4,394
VCSC Maint. Analysis - 34,800
SROP Plus Current DSRSD - - 53,150
Aquatics Staff Budget for All - 26,523 48,827
Items except Park
Maint. Labor
TOTAL 31 ,321 ,700 5213,321 3250,371
Net Subsidy
Required - 0 - $ 9- 5(19,573 .
* Contract/rental revenue related
to SROP (sw im cl ub rental ; school
district contract) .
** Costs and revenues cal cul aced fog
six month period.
Re�-lec�3 CvrrtmAr Buc�rII�. 1►,clvdes
e s+rh CA14 $P
%
sl'lcre of � F oGG Qnnua �
! UL T14o,400 in vntxpT,,4tCj tBJervGi'
t Ll c-•c cl tT,
Vat;t.;"' �tcr�ChcCres re ly-�cct
g�hr"I �'^� tc�viceS
A srvr.,e Sd plc►, chec�l r+C 1
would �je } �rtrirwc, J
FROM 7-1-87 _ FROM 7-1-88
THROUGH 6-36-88 THROUGH 6-30-89
ITEM4 Dubi in San Ramon Dublin San Ramon
Revenue
Property Tax $1 ,594,564 $1 ,347,436 $1 ,723,344 $1,398,656
Interest 92,500 92,500 92,500 92,500
Al tamont Dump Fees 12, 000 42,000 Ij, 500 1*7, 500
Aquatics Fees 57,900 92,100 57,900 92,100
F i el d Use Fees 13,668 11 ,832 13,668 11 ,832
Gen' I.Govt. .1.7, fop 1-7,Soo i-7,Sap
Miscellaneous* - 40,000 - 40,000
TOTAL g, Li3 3�o£s ' 1,922;y i '.I, 670, 0$
Costs
Fire $1,432,723 $1 ,210,677 $1 ,459,157 $1 ,184,243
White House/ _
Shannon Maint. 31 ,200 28,000 31 ,200 28,000
Park Maint. 273,336 268,788 273,336 268,788
VCSC 69,600 - 69,600 -
SROP - 106,300 - 106,300
Aquatics Staff 53,046 97,654 53,046 97,654
TOTAL $1 ,859,905 $1 ,711 ,419 $1 ,886,339 51 ,584,985
Net Revenue
Available
After Costs CS Li V -773) l $ G3,05 I ) $ 36, 073
Swim Clubs Rental/School District
Rental