Board of Supervisors Approve Detachment Process of Six Tax Rate Areas in Town of Discovery Bay

On Tuesday, the Contra Costa County Board of Supervisors unanimously approved to begin a process to detach six overlapping tax rate areas by the Discovery Bay Community Services District and the Byron-Bethany Irrigation District, a total of $684,246 could be potentially reallocated to one or more of the other affected taxing agencies.

Supervisor Mary Piepho requested the Board see if it was legal to direct all funds to the East Contra Costa Fire Protection District.  The process is expected to take 4-to-6 months.

The Board accepted a number of recommendations which include:

1. ACKNOWLEDGE that the Discovery Bay Community Services District (DBCSD) and the Byron-Bethany Irrigation District (BBID) have overlapping boundaries.
2. ACKNOWLEDGE that both the DBCSD and BBID receive funding for water service, through property taxes or fees, but only DBCSD actually provides water service to the overlap areas.
3. ACKNOWLEDGE that the 2014 Contra Costa LAFCO Second Round Water/Wastewater Municipal Service Review indicated that it appears unlikely Discovery Bay residents will use BBID water and recommended that consideration be given to detaching the overlapping areas.
4. ACKNOWLEDGE that there are six Tax Rate Areas (TRAs) that overlap which, if detached from BBID, would result in nearly $685,000 being reallocated to other affected taxing agencies each year.
5. DIRECT the County Administrator to return to the Board with a resolution of application for detachment in order to initiate the detachment process, and to provide notice to Contra Costa LAFCO, San Joaquin LAFCO and other interested agencies.
6. DIRECT the County Administrator to explore allocation of the BBID property tax revenues from the overlap areas to the East Contra Costa Fire Protection District (ECCFPD).

Bob Mankin, a resident of Discovery Bay and resides in the impacted overlap stated how he discovered the overlap.

“Over 18-months ago when I dug into my Tax Rate Area for a better understanding, I realized I was a part of BBID unknowingly and 14.9% of my ad valorem tax goes to an irrigation district that is not offering me any services,” said Mankin. “To address Supervisor Andersen’s concerns on the previous issue, that all avenues of potential revenue need to be looked at for a fire district. This was one of those cases where we actually did that. We are turning over all rocks. We are doing everything we can from a grass roots citizens effort to try and bring forward some solutions.”

Mankin said during a meeting last week with the BBID was that the consensus was there was not emergency water need between adjoining districts which was probably a legacy issue that needs to be cleaned up.

“If it frees up the revenue, if it can legally be put in the fire district I am all in support of that. Recognizing that if that does take place the fire district now becomes the singe largest beneficiary of my ad valorem tax dollar. I am fully in support of that,” said Mankin.

Vince Wells, President of the Professional Firefighters of Contra Costa County, Local 1230, thanked Supervisor Piepho for helping bring this issue forward.

“This is a huge step in showing the public that when these things are identified, the board takes action and I think that will go a long way in securing revenue in the future,” said Wells.

Supervisor Karen Mitchoff was curious on the time frame they are looking at with this process.

Supervisor Piepho explained that LAFCO stated it could be 4-6 months which is the legal constraints and timelines need to be followed. The motion today simply starts the process.

“We are starting the process, but we are expecting resolution soon,” said Piepho.

Mitchoff noted she was pleased with the timeline along with a station re-opening.

Piepho highlighted that if the ECCFPD is successful in moving forward with the Task Force recommendation, it could actually mean a fifth fire station.

“It could mean a fifth station being open. The revenue here could mean a fifth station,” said Piepho. “It could have some potential to at least augment a fifth station or help maintain service levels that currently exist.”

Mitchoff highlighted that will added revenue was a good thing, the people of the District still needed to support a long-term solution.

“This is a great way to find revenue that is out there but for the public they need to understand this does not negate moving forward for more money, if you will, to support their fire district.” Said Mitchoff.

While the Board of Supervisors did vote to work on placing the freed up funds in the East Contra Costa Fire Protection District, if they cannot legally do that, as many as 13-agencies could benefit from the re-allocation.

Editors Notes:

Minutes after the Agenda Item was approved, a press release was sent out by the Byron-Bethany Irrigation District’s Public Relations Firm. It should be noted, they did not speak at the meeting.

Attempts to contact the  Byron-Bethany Irrigation District were unsuccessful and they failed to responds to an email as well asking them what was premature in the decision.

According to sources who attended last week’s meeting between stakeholders, the Byron-Bethany Irrigation District offered to pay the East Contra Costa Fire Protection District $1 million over a period of 5-years. Meanwhile, they would then go back to collecting full fees that do not belong to them nor have ever belonged to them.

This detachment process would bring at least $684,246 per year going forward, the Byron-Bethany Irrigation District is offering just $200k a year over 5-years for the detachment process to go away–that offer should be rejected by the County as this is equivalent of robbing a bank for $5 million dollars but deciding to give $1 million back.

This appears to be a case of a portion of Discovery Bay residents who are not receiving any services to be supplementing the Byron-Bethany Irrigation District and the irrigation District does not like that it may stop.

It should also be noted that the Byron-Bethany Irrigation District was fined by the State of California earlier this year to the tune of $1.5 million for improper water diversions of more than 670 million gallons.

Here is a copy of the Press Release:

Contra Costa County Board of Supervisors Vote Triggers Possible Detachment Process in Town of Discovery Bay

Area Farmers Warn Separation from Water District Could Lead to Major Increases in Water Rates and a Compromised Future Water Supply

Byron, CA (November 17, 2015) — In a unanimous 5-0 decision, the Contra Costa County Board of Supervisors voted to ask the Local Agency Formation Commission (LAFCO) in San Joaquin County to consider the detachment of portions of the Town of Discovery Bay from the Byron-Bethany Irrigation District (BBID).  Currently, the property tax revenue paid by the affected residents of Discovery Bay helps ensure the future water supply of this growing residential community.  The authorization of the application represents the beginning of a formal process that could jeopardize the needs of the community moving forward.

“We are absolutely puzzled by the Board’s premature action on this issue,” says BBID Board President Russell Kagehiro.   “All interested parties are in the very early stages of the analysis of rates, services and impacts, and the relationship between the Town of Discovery Bay and BBID. Without further review of the future water supply needs of Discovery Bay, particularly in light of a historic drought, this authorization is irresponsible.”

In the Contra Costa County Board of Supervisors’ consideration of the item, county staff was asked to prepare a series of documents needed for the Board to pursue detachment of the overlapping tax rate areas for water service between BBID and the Discovery Bay Community Services District. In the staff report made public on November 13^th, that early examination clearly states that the true impacts are unknown.  The document affirms the following:

The MSR [Municipal Service Review] also noted that further study is needed to fully analyze the service and fiscal implications of such a detachment to both the residents and BBID.  

Among the unanswered questions are how the Town of Discovery Bay will receive water in the future and how current BBID customers’ water rates will be impacted if the district loses this tax revenue.  Currently, the nearly $685,000 received annually by BBID through the property tax allocation contributes to the organization’s general fund and allows for the development and protection of future water supply as well as basic operations.  While this tax revenue could be allocated to another service, Discovery Bay residents will not see a reduction in their property tax assessments as a result of any future LAFCO decision.

In further action during today’s meeting, the Board of Supervisors directed the County Administrator to explore allocation of the BBID property tax revenues from the overlap areas to the East Contra Costa Fire Protection District (ECCFPD), a decision that could blur current negotiations among the affected agencies.  Earlier this month, the BBID Board of Directors directed staff to develop a proposal that would bring more than $1 million to ECCFPD over five years.

“We recognize that we need to help and we have a current offer on the table that would bring real relief, “ says BBID Board Member Larry Enos.  “But we cannot do this on the backs of local farmers and ranchers.  Our proposal balances the current need for fire services with the future need for a reliable water supply, without putting an already hard-hit agriculture community at greater risk”

LAFCO is the agency responsible for coordinating changes to local government boundaries, including annexations, consolidations and detachments. It is specifically charged by law with encouraging the orderly formation and development of all the governmental agencies within its jurisdiction.

“It is incumbent upon the LAFCO organizations in our region to study this issue completely before moving forward,” adds BBID Board Vice President Tim Maggiore.  “Anything short of that is inconsistent with good governance and will only lead to fractured relationships.”

 Byron-Bethany Irrigation District (BBID) is a multi-county special district serving parts of Alameda, Contra Costa, and San Joaquin Counties across 47 square miles and 30,000 acres.  The district serves 160 agricultural customers and approximately 12,000 residents of the Mountain House community. For additional media information, contact Erin Gilhuly at 760.641.0739 or via email at [email protected].