QUESTIONS & ANSWERS ABOUT ROAD ZONES OF BENEFIT

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The Department of Transportation Special Districts Unit frequently receives inquires from residents in existing zones of benefit and from County residents interested in forming some sort of entity for maintaining private roads. This list of questions and answers addresses the most common inquires, and applies generally to those who wish to form a new zone of benefit. Residents and property owners in existing zones of benefit should contact the Special Districts Unit with specific questions, and not rely on this document for comprehensive answers to all situations.

I live on a private road that needs to be maintained. The neighbors don't agree on what needs to be done or how much each of us should pay; some refuse to pay at all! Can I do anything about this?

A group of citizens can form a Homeowners Association, a Road Maintenance Association or a Road Zone of Benefit. To form a Homeowners or Road Maintenance Association, an attorney familiar with laws governing such organizations should be consulted. To establish a Zone of Benefit, residents should contact the El Dorado County Department of Transportation, Special District Unit for information on the Zone of Benefit program, a Formation Application and a copy of the program Policy and Procedures Guidelines.

What is a Zone of Benefit?

A zone of benefit is a geographic area formed under County Service Area law to provide extended services not already being provided by any other entity. Extended services that can be provided include road maintenance and improvement services, drainage facility, landscape, and lighting maintenance. If you live on a road not maintained by the County Department of Transportation or some other agency, a petition can be submitted to form a zone of benefit to provide the extended service of road improvement and maintenance.

How is a zone of benefit different from a district?

A District has a Board of Directors and is self-governing. A zone of benefit is governed by the County Board of Supervisors. The Special Districts Unit of the Department of Transportation serves as a liaison between the residents and the Board.

What are the costs associated with forming a road zone of benefit? Are there other fees required once the zone is established?

A $200 application fee is required. This deposit will be used to defray the initial costs associated with zone formation. Formation charges exceeding the initial $200 deposit can be recovered from the zone's first year tax monies. If the formation is not successful, the applicant will be billed for any excess formation costs. Additional costs incurred in order to meet formation requirements, such as charges by an engineer to prepare a map or legal description are paid by the applicant directly to the service provider. The applicant must also pay a fee to the California State Board of Equalization, based on their fee schedule.

 Once established, the zone will be charged annually as follows:

• 1% of the annual assessment to the Auditor/Controller for processing costs
• a proportionate amount of the cost of an insurance policy covering the zone roads based on the mileage included in each zone
• administration fees that are specific to the work required in each zone. Fees include: 
  • the cost of staff time spent administering the zone is paid to the Special Districts Unit of the Department of Transportation. Administration includes such activities as processing purchase orders, preparing bid documents and contracts, and reviewing and monitoring the budget for each zone. Because this is a direct billing for time worked, this cost will vary greatly with each zone and is dependent upon the number of calls and issues requiring staff involvement;
  • the costs associated with budget preparation, monthly reconciliation, and general zone activities are spread to all zones in the program;
  • other miscellaneous costs including required public noticing, administrative costs charged by the Board of Supervisors office and mainframe data processing charges.
• Any and all road work is paid from each respective zone's account
• All expenditures must comply with County Ordinance requirements

If some people don't support the formation, can they prevent the zone from forming?

If a two-thirds majority of the property owners sign the application petition and the property owners controlling the road easements are willing to sign irrevocable offers of dedication, the formation can proceed. The Board of Supervisors holds noticed public hearings where protests can be heard. If the Board, despite the protests of an individual parcel owner, approves the zone formation, that owner will be assessed based on the benefit received along with all other parcel owners in the zone.

Who sets and approves the amount charged for each parcel?

There are two types of charges that can be levied in the zone program, a special tax or a benefit assessment. The amount of either a special tax or benefit assessment is supported by the engineer’s report submitted with the application to form zone of benefit. It must include allowance for the administrative costs previously described, as well as the maintenance costs.

A special tax requires two-thirds majority approval of the registered voters voting within the zone boundaries. A special tax can be set at a maximum and levied each year at any amount up to the maximum; it can be established with an escalator and/or with a "sunset clause". Any proposed increase exceeding the approved maximum amount would require a two-thirds majority approval in another election.

In the case of a proposed benefit assessment, a report prepared by a licensed engineer explaining the benefit received by each parcel is submitted. Parcel owners within the zone boundaries will then receive a ballot on which they express their approval or objection to the proposed assessment. Responses are weighted, based on the acreage and assessed value of the property. If a majority of the weighted ballots received protest the assessment, it cannot be levied. Any subsequent proposed increase would be subject to the same approval process.

Who determines what work needs to be done? Who pays for these services?

As part of formation, the property owners and residents of the zone may recommend the Board of Supervisors appoint an Advisory Committee and identify a Key Contact to act as liaison to the County. Once appointed by the Board, members of this committee serve in an advisory capacity and, as such, are subject to the provisions of California’s open meeting laws, also know as the Ralph M. Brown Act (“Brown Act”). Advisory committee members are also subject rules regarding conflict of interest under the Political Reform Act of 1974 (“the PRA”), which is enforced in California by the Fair Political Practices Commission.

The Advisory Committee is required to meet at least four (4) times each year. All meetings are open to the public and must be noticed accordingly. All property owners and residents of the zone have the right to speak and vote on these issues. The Committee develops a recommended budget, including specific projects to be completed and the amount of the assessment or tax to be charged to each property within the zone. If an increase to the previously approved amount is proposed, it must be approved through the procedures previously described. The amount of the assessment must be based on the benefit received by each property with the nexus or methodology included in the proposed budget.

Special Districts staff presents the zones' proposed budgets to the Board for approval annually. Any zone member may appear before the Board to speak on the proposed assessment and budget. If an increase to an existing assessment or an increase above the approved maximum special tax is proposed, it would be subject to the approval process described above.

Once approved by the Board and any required ballot protest proceeding or registered voter election, the benefit assessment or special tax is added to the property tax bill for each parcel. The funds are collected with the property taxes and deposited into an interest bearing account for use within the zone. The Department of Transportation Special Districts Unit administers all funds. Monies are not placed in the General Fund and cannot be used for other purposes.

Are we required to bring our road up to any particular standards? Is there a requirement as to the level of maintenance and/or improvements we must provide?

At this time there is no standard established for existing zone roads, although compliance with Fire Safety Regulations is recommended. The property owners and residents in the zone determine the level of improvements and/or maintenance for roads within their zone, subject to approval of the Board of Supervisors.

What happens to our money if we don't use it all during the year? What if we don't have the work done that we budgeted for? Is our money lost? Can the County use it for other purposes?

Any funds budgeted but not used within the fiscal year are carried over into the zone's account for the next year. If budgeted projects are not completed, the funds will be available for the zone's use in the next year. By law, zone funds cannot be used for any purpose other than approved work in the zone and costs associated with operation and administration of the zone. An exception would be if a zone were to dissolve with a balance remaining in their account. In that case, the excess funds at the time of dissolution would revert to the County General Fund.

Are there any restrictions on what can be done on our road?

One requirement of formation is that irrevocable offers of dedication for road and public utility easements be granted to the County. Once completed, this action establishes the road as a public road, subject to provisions of applicable State laws, including but not limited to the California Vehicle Code and Streets and Highways Code. Important provisions for public roads include:

• access to the road cannot be restricted (no gates or any other barriers);
• obstructions cannot be placed on or under the surface of the roadway which will impede the speed of vehicles in such a way as to cause discomfort or harm to persons in a vehicle (such as speed bumps, speed dips or undulations); however, rumble strips and delineators are permitted;
• guide or directional signs are permitted; regulatory signs, such as speed limit or stop signs, require approval by the County Department of Transportation;
• road work must be completed by a contractor under a fully executed written agreement with the County. The contractor must meet the County’s insurance requirements and satisfy licensing, bonding, and prevailing wage provisions of the Public Contract Code. Projects exceeding $25,000 require public bid and award made to the qualified low bidder;
• limited volunteer work is allowed, upon written approval by the County  prior to the start of work; and
• procurement of contracts and materials is subject to provisions of County Ordinance and Public Contract Code

If we cannot post a speed limit on our road, how can we control speeders? What is our liability if an accident should occur?

The California Vehicle Code states that travel on all public roads shall be at a prudent speed that in no way endangers property or life. The California Highway Patrol is responsible for public roads and will respond to calls on zone roads.

The road zones of benefit are required to contribute to the purchase of a liability insurance policy covering all zone roads.

Once a road zone of benefit is established, can it be dissolved? If so, what is the cost and what happens to any monies we have collected? Does the road revert to being a private road?

A road zone of benefit can be dissolved by initiation of the Board of Supervisors or by initiation of the property owners or residents. A petition signed by fifty-one percent (51%) of the registered voters in the zone or property owners of fifty-one (51%) or more of the assessed value of the land and improvements is required to initiate the dissolution process.

If formation of the zone of benefit was a condition of approval for a subdivision map, a waiver of that condition must be obtained under a subdivision map amendment from the Planning Department before dissolution can proceed.

A filing fee of $200 is required to initiate the dissolution process. The actual costs to the County, including any fees charged by the State Board of Equalization, will be taken from the initial payment. The zone must pay any costs over $200 before the dissolution will be recorded and may result in additional assessments or charges to the zone.

Any funds remaining in a zone account at the time of dissolution will be used for expenses related to the dissolution. If there are additional funds remaining once the dissolution is complete and all financial obligations met, the monies will be transferred to the County General Fund.

Because irrevocable offers of dedication exist, the roads remain public unless and until the Board of Supervisors takes formal action to vacate the right of way and return in to private use.