Homes, School Annexed Into San Ramon

Another 88 acres, 335 homes and a school are being incorporated into the city limits of San Ramon.

The Contra Costa Local Agency Formation Commission (LAFCO) approved on Wednesday afternoon the annexation of another slice of Dougherty Valley into the city.

This was the latest annexation from that region stemming from a 1994 agreement, but the process has been slowed by the ailing housing market, creating a situation that is costing San Ramon about $3 million in revenue a year.

"It does put a strain on our budget," said City Manager Greg Rogers.

On Wednesday, there were two annexations, the 13th and 14th in this series. The larger one consists of 86 acres and 335 single-family houses in the Gale Ranch subdivision and will add a projected 994 people to the city.

The annexation also includes Quail Run Elementary School.

The second annexation is 2.75 acres and includes the Dougherty Valley Service Center.

The annexations are somewhat a formality. There are usually at least a couple a year. At Wednesday's public hearing, no residents spoke in opposition.

However, commissioner Sharon Burke, an Alamo resident, did question the financial costs of the annexations.

At one point, she asked what would happen if the annexation wasn't approved. She was told the property would remain part of Contra Costa County.

In the end, Burke voted along with the other five commissioners present to approve the proposal.

The annexations are part of an agreement signed in 1994 by San Ramon, Danville, Contra Costa County, Windemere Ranch Partners and Shapell Industries.

This was a 20-year plan designed to bring those properties in unincorporated Contra Costa County into the city of San Ramon.

As each portion is completed and a final subdivision map is filed, an annexation is approved.

"As each little piece is finished, they are brought into the city," said Rogers.

Windemere is pretty much built out. The Gale Ranch subdivision owned by Shapell still has a ways to go.

Rogers said about 8,000 of the 11,000 planned units in Dougherty Valley have been built.

However, when the agreement was signed in 1994, it was thought all 11,000 homes would be completed by 2014.

Right now, Rogers said, there are only about 150 homes being built a year due to the struggling housing market. At that pace, it will take well beyond 2020 to finish.

The problem for the city is they are providing services such as police, fire, park maintenance, street lights and road maintenance to these new neighborhoods.

However, the city only receives a service fee until the annexation is approved. Then, they receive a share of property tax and gas tax.

Rogers said if the homes had been completed on schedule, the city would be "breaking even" in Dougherty Valley. As it now stands, the city is losing about $3 million a year in potential revenue while still providing services.

"We're filling the gap right now," said Rogers.