To: Board of Supervisors
From: Federal D. Glover, District V Supervisor
Report Title: Phillips Ultra Low Sulfur Diesel Fuel Return-to-Source Fund Allocation
☐Recommendation of the County Administrator ☐ Recommendation of Board Committee
RECOMMENDATIONS:
1. APPROVE the Fiscal Year 2023/2024 Phillips Ultra Low Sulfur Diesel Fuel Return-to-Source Fund Allocation in the amount of $255,000.
2. APPROVE Budget Amendment No. BDA-23-00291 allocating new revenue in the amount of $205,000 in the Crockett-Carquinez Fire Protection District (7028) and appropriate it for the purchase of equipment and fixed assets.
3. APPROVE and AUTHORIZE the Conservation and Development Director to enter into a contract with New Horizons Career Development Center in an amount not to exceed $50,000 for career development and life skills services for a period of one year from the execution of the agreement.
FISCAL IMPACT:
Up to $255,000; 100% General Fund through the Phillips Ultra Low Sulfur Diesel Fuel Return-to-Source allocation.
BACKGROUND:
History of Phillips Ultra Low Sulfur Diesel Fuel Return-to-Source Fund
On October 17, 1995, the Board of Supervisors (the “Board”) approved allocating property tax revenues from the Unocal Reformulated Gasoline Projects as a Return-To-Source Fund for the purpose of funding projects that would positively impact the economic development in the target communities.
On February 15, 2005, the Board approved replacing the source of funding for this fund from the diminishing proceeds of the Reformulated Gasoline Project, with a portion of the property tax increment revenue resulting from the construction of the ConocoPhillips Ultra Low Sulfur Diesel Fuel Project. This funding was designated for economic development and safety needs in the impacted unincorporated West County communities of Rodeo, Tormey, Crockett, and Port Costa.
2008 & 2011 Review of Special Revenue Funds
On December 9, 2008, following a discussion about a proposal to allocate Dougherty Valley Regional Enhancement funds to provide industrial education and vocational training to West County youth, the Board referred to the Internal Operations Committee (IOC) a review of how special revenue or “trust” funds are expended by the County and the possible development of a policy regarding the expenditure of such funds. At that time, staff compiled information on selected special revenues administered by the Board and drafted a policy that defined various types of special revenues and how new special revenues would be administered in the future. In 2009, that matter was discussed in June, July, and September at IOC and at two meetings of the Finance Committee while on dual referral.
On December 15, 2009, the Board voted unanimously to affirm that existing special revenue funds are to be administered by the Supervisor serving in the district for which the special revenue fund was created, unless specified otherwise when the fund was established, such as a Community Benefit Agreement. The Phillips Ultra Low Sulfur Diesel Fuel Return-to-Source Fund Allocation is not attached to a Community Benefit Agreement.
FY 2023/24 Allocation Proposal
Pursuant to the Board Policy, the District V Supervisor administers the Phillips Ultra Low Sulfur Diesel Fuel Return-to-Source funding and is making the following recommendations for one-time allocations to meet various needs within unincorporated areas of Crockett and Rodeo:
• Allocations to the Crockett-Carquinez Fire Protection District ($205,000):
o $80,000 to cover replacement of a 32-year-old Water Tender apparatus;
o $75,000 to replace a 2006 Command Vehicle with an electric pick-up truck consistent with the County’s clean energy vehicle goals;
o $50,000 to replace personal protective equipment (PPE) to comply with State requirements to replace structural and wildland fire suppression PPE every 10 years, regardless of condition; and
• Allocation to the New Horizons Career Development Center ($50,000)
o $50,000 to assist with operating costs for the provision of career development services, including General Education Diploma (GED) classes, expungement workshops, interview techniques classes, life skills development and typing tutorial programs.
CONSEQUENCE OF NEGATIVE ACTION:
No one-time allocations will be made from the Phillips Ultra Low Sulfur Diesel Fuel Return-to-Source Fund Allocation.