HomeMy WebLinkAbout09 CONDUCT PUBLIC HEARING TO CONSIDER LEVYING OF ANNUAL ASSESSMENTS FOR THE TUSTIN LANDSCAPE AND LIGHTING DISTRICT FOR FISCAL YEAR 2016-17Agenda Item 9
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Reviewed:
AGENDA REPORT City Manager
Finance Director
MEETING DATE: JUNE 7, 2016
TO: JEFFREY C. PARKER, CITY MANAGER
FROM: DOUGLAS S. STACK, DIRECTOR OF PUBLIC WORKS/CITY
ENGINEER
SUBJECT: CONDUCT PUBLIC HEARING TO CONSIDER LEVYING OF ANNUAL
ASSESSMENTS FOR THE TUSTIN LANDSCAPE AND LIGHTING
DISTRICT FOR FISCAL YEAR 2016-2017
SUMMARY:
The Tustin Landscape and Lighting District Engineer's Report was completed and
approved by the City Council at their May 3, 2016 meeting. At that meeting, the City
Council declared its intention to levy annual assessments and set a public hearing for
June 7, 2016. In order to levy the annual assessments, the City Council is required to
conduct a public hearing and, provided there is no majority protest, adopt Resolution
No. 16-34 confirming the annual assessments for Fiscal Year 2016-2017.
RECOMMENDATION:
It is recommended that the City Council:
1. Conduct a public hearing to receive testimony on the proposed levy of annual
assessments for the Tustin Landscape and Lighting District for Fiscal Year 2016-
2017; and
2. Adopt Resolution No. 16-34 confirming the annual assessments for Fiscal Year
2016-2017.
FISCAL IMPACT:
The landscape maintenance and public street lighting expenses within the Tustin Ranch
area are typically recovered through the levy of the annual assessments for the District.
The proposed Fiscal Year 2016-2017 budget is $1,171,700 with proposed assessments
of $622,907. Included in the assessments is a charge of $10,300.51 to the City for
Public Works
June 7, 2016
Page 2
parkland which will be paid through the City's general fund operating budget. In order to
meet the District's budget needs at the conclusion of FY 2016-2017, the City must
consider additional funding to cover a deficit currently projected at $548,793 from the
Reassessment District 95-1 (RAD 95-1) Construction Fund (431) available balance.
The Finance Department has projected the RAD 95-1 Construction Fund balance at the
end of FY 2015-2016 to be approximately $2,600,000.
CORRELATION TO STRATEGIC PLAN:
This item contributes to the fulfillment of the City's Strategic Plan Goal B: Public Safety
and Protection of Assets by ensuring Tustin is an attractive and well maintained
community in which people feel pride.
BACKGROUND AND DISCUSSION:
The Tustin Landscape and Lighting District was formed in 1985 to fund the maintenance
of perimeter landscaping on the arterial highways and for the operation and
maintenance of street lighting on public streets within the Tustin Ranch area.
Assessments for the benefiting properties were first confirmed for Fiscal Year 1985-
1986 and each fiscal year thereafter. As property developed in the Tustin Ranch area,
such development was required to annex to the District. The District currently consists
of 5,704 parcels encompassing 456.32 acres.
On January 15, 1996, Re -Assessment District No. 95-1 (RAD 95-1) was formed by
Resolution No. 96-8, thereby consolidating AD 85-1 and AD 86-2 within the City of
Tustin into a single district and authorizing the issuance of bonds to exonerate the
previous bonds. Assessments levied under RAD 95-1 cover the same public
infrastructure improvements within the City of Tustin as the previous Assessment
Districts.
On November 17, 2009, the City Council declared that construction of all required
improvements was complete and, pursuant to Section 10427 of the California Streets
and Highways Code, the remaining funds in RAD 95-1 were surplus and, as such, the
remaining funds could be utilized for maintenance projects within the Tustin Landscape
and Lighting District. These one-time funds have been utilized to offset annual District
deficits in Fiscal Years 2009-2010, 2010-2011, 2011-2012, 2012-2013, 2013-2014,
2014-2015 and are proposed to be utilized for 2015-2016. The Finance Department
has projected the RAD 95-1 Fund balance at the end of FY 2015-2016 to be
approximately $2,600,000.
Public Works
June 7, 2016
Page 3
DISCUSSION
Based on the results of the 1997 ballot proceedings, the base assessment rate for
Fiscal Year 1997-1998 may be increased in subsequent years by no more than the
increase in the CPI for all urban consumers for the Los Angeles, Anaheim, and
Riverside area. The percentage increase in the CPI for calendar year 2015 is 2.0%.
The District's budget for Fiscal Year 2016-2017 has been increased per the maximum
allowed by Proposition 218 to offset operating expenses.
Each year, the City estimates the cost to provide the street lighting and landscape
maintenance services within the District. Staff estimates the proposed FY 2016-2017
budget to be $1,171,700, comprised of the following major components: arterial and
collector street lighting; local residential lighting; and parkway, slope and trail
landscaping.
The resulting total costs to be assessed for lighting and landscape maintenance for
Fiscal Year 2016-2017 are $87,962 and $534,945, respectively, for a total operating
and maintenance assessment of $622,907. This total cost is then divided among the
parcels on a proportionate share, based on a report prepared by consultant engineers.
The precise method used to establish each parcel's special benefit may vary according
to land usage and benefit area, but similar parcels with equal benefit from the District
pay equal assessments.
There are 5,704 parcels within the District for Fiscal Year 2016-2017, which remains
unchanged from the previous fiscal year.
The District includes three separate benefit areas based upon the special benefits
received.
Benefit Area "A" Properties located in Benefit Area "A" pay only for Arterial and
Collector Street Lighting (ACLT).
Benefit Area "B" Properties located in Benefit Area "B" pay for Arterial and Collector
Street Lighting, plus Parkway, Slope, and Trail Landscaping (ACLT + PSTL).
Benefit Area "C" Properties located in Benefit Area "C" pay for Arterial and Collector
Street Lighting, plus Parkway, Slope, Trail Landscaping, plus Local Residential Street
Lighting (ACLT + PSTL + LRLT). Those parcels that pay for local residential street
lighting are located within the residential tracts that have public streets.
Typically, owners of single-family residential parcels in each area pay an equal share.
The proposed assessments to be paid by single family residential parcels in each of the
Public Works
June 7, 2016
Page 4
following benefit areas are:
Benefit Area "A" (ACLT)....................................................... $8.92 per year
Benefit Area "B" (ACLT + PSTL).............................................$78.48 per year
Benefit Area "C" (ACLT +PSLT + LRLT).................................$109.00 per year
The Engineer's Report prepared by Harris & Associates has been filed with the City
Clerk and contains the following proposed levy of assessments for Fiscal Year 2016-
2017 along with a comparable listing to last year's assessment.
ASSESSMENT RATE SUMMARY BY LAND USE
FY 2015-16
FY 2016-17
BENEFIT AREA
A
B
C
A
B
C
LAND USE
ACLT
ACLT +
ACLT+PSTL
ACLT
ACLT +
ACLT+PSTL +
PSTL
+ LRLT
PSTL
LRLT
Single Family Res. ($/Dwelling Unit)
$76.94/DU
$106.86/DU
$78.48/DU
$109.00/DU
Multi -family Res. ($/Dwelling Unit)
$57.71 /DU
$58.86/DU
Non -Residential ($/ac)
$461.64/ac
$470.88/ac
Non -Res - Tustin Market Place ($/ac)
$51.12/ac
$53.52/ac
Golf Course ($/ac)
$307.76/ac
$313.92/ac
Vacant and Parks ($/ac)
$153.88/ac
$156.96/ac
It is recommended that the City Council adopt Resolution No. 16-34 which will confirm
the levy of assessments for Fiscal Year 2016-2017 for the landscape maintenance and
public street lighting expenses within the Tustin Ranch area.
Attachments:
1. Resolution 16-34 Levy TLLD Assessments for FY16-17
2. FY 16/17 TLLD Diagrams
RESOLUTION NO. 16-34
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TUSTIN,
CALIFORNIA CONFIRMING THE LEVY OF ANNUAL ASSESSMENTS FOR
THE LANDSCAPE MAINTENANCE AND PUBLIC STREET LIGHTING
EXPENSES IN THE TUSTIN RANCH AREA WITHIN THE BOUNDARIES OF
THE TUSTIN LANDSCAPE AND LIGHTING DISTRICT FOR FISCAL YEAR
2016-2017
WHEREAS, the City Council of the City of Tustin, California (hereinafter referred to as
the "City Council"), has adopted Resolution No. 16-08 initiating proceedings for the annual levy of
assessments for the payment of the expenses of providing and servicing public landscaping and
public street lighting in the Tustin Ranch area within the boundaries of the Tustin Landscape and
Lighting District; and
WHEREAS, the City Engineer has prepared and filed with the City Clerk his report (the
"Report") containing the matters specified in Section 22565 of Part 2 of Division 15 of the Streets
and Highways Code of California as amended, the "Code", and Proposition 218; and
WHEREAS, the City Council has approved the report as filed on the 3 d day of May
2016, with the passage and adoption of Resolution No. 16-29; and
WHEREAS, the City Council heretofore by Resolution of Intention No. 16-30 passed and
adopted on the 3 d day of May 2016, declared its intention to provide for an annual levy of
assessment for improvement, maintenance and servicing of public landscaping and street lighting
facilities within the boundaries of the territory included within the Tustin Landscape and Lighting
District; as more fully described in said Resolution of Intention; and
WHEREAS, the City Council, by said Resolution of Intention No. 16-30, fixed Tuesday,
June 7, 2016, at 7:00 p.m. before the City Council at the City Council Chamber, 300 Centennial
Way, Tustin, California, as the time and place for a hearing on levying the proposed assessments,
and provided for the notice of said hearing; and
WHEREAS, the City Clerk has filed with the City Council an affidavit setting forth the
time and manner of compliance with the requirements for posting and publishing set forth in
Sections 22552, 22553 and 22554, of the Code and in accordance with Proposition 218, and the
City Council hereby finds the Resolution has been posted in the time, form and manner required by
law; and
WHEREAS, the hearing was duly opened and held by the City Council at the time and
place for the hearing; and
WHEREAS; all verbal protests or objections made by property owners at the hearing
conducted on June 7, 2016, were formally received and reflected in the City Council minutes of
said meeting; and
WHEREAS, the City Council received all written property owner protests submitted prior
to the conclusion of the hearing; and
WHEREAS, said City Council proceeded to hear and pass upon any protests, made at
the hearing, and on motions duly made and seconded, granted in whole or in part or, overruled
each and all of said protests and objections, as hereinafter set forth; and
WHEREAS, the public interest and convenience require the maintenance, servicing and
operation of those certain public landscaping and lighting facilities within the assessment district;
and
WHEREAS, all the assessed territory within said assessment district would be specially
benefited by the maintenance of improvements described in the Resolution of Intention.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Tustin that it
determines and orders as follows:
Section 1: The foregoing recitals are true and correct and the City Council so finds and determines.
All said protests and objections are hereby overruled by the affirmative vote of the members of the
City Council voting in favor of the adoption of this resolution.
Section 2: The improvements consisting of the maintenance, servicing, and operation of public
landscaping and street lighting in the assessment district, as set forth in the Report, a copy of
which is on file in the office of the City Clerk, are ordered to be undertaken.
Section 3: The Annual Assessments for Fiscal Year 2016-2017 as set forth in the Report, copies of
which are on file in the office of the City Clerk are hereby confirmed.
Section 4: Passage of this Resolution shall constitute a levy of an assessment for the fiscal year
referred to in the assessment confirmed herein.
Section 5: Pursuant to law, including Article 1 of Chapter 4 of Part 2 of Division 5 of the Code, the
City Clerk shall file a certified copy of this Resolution and the diagram and the assessment
confirmed by the resolution or a certified copy therefore, with the County Auditor of the County of
Orange.
PASSED AND ADOPTED at a regular meeting of the City Council of the City of Tustin
held on the 7th day of June 2016.
JOHN NIELSEN
Mayor
ATTEST:
ERICA N. RABE
City Clerk
STATE OF CALIFORNIA )
COUNTY OF ORANGE ) SS
CITY OF TUSTIN )
I, Erica N. Rabe, City Clerk and ex -officio Clerk of the City Council of the City of Tustin, California,
do hereby certify that the whole number of the members of the City Council is five; that the above
and foregoing Resolution No. 16-34 was duly and regularly passed and adopted at a regular
meeting of the City Council held on the 7th day of June, 2016 by the following vote:
COUNCILMEMBER AYES:
COUNCILMEMBER NOES:
COUNCILMEMBER ABSTAINED:
COUNCILMEMBER ABSENT:
ERICA N. RABE,
City Clerk
CITY OF TUSTIN
LANDSCAPE AND LIGHTING DISTRICT
ASSESSMENT DIAGRAM
FOR THE
2016-17 FISCAL YEAR
LANDSCAPE MAINTENANCE FACILITIES MAP
LEGEND
LANDSCAPE MAINTENANCE
SLOPE MAINTENANCE
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22 Executive Park, Suite 200 — Irvine, CA 92614
PHONE: (949 655-3900® FAX: (949) 655-3995
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CITY OF TUSTIN
LANDSCAPE AND LIGHTING DISTRICT
ASSESSMENT DIAGRAM
FOR THE
2016-17 FISCAL YEAR
ASSESSMENT DIAGRAWBOUNDARY MAP
LEGEND
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BENEFIT AREA B
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