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Home My WebLink About06 CONDUCT PUBLIC HEARING TO CONSIDER LEVYING OF ANNUAL ASSESSMENTS FOR THE TUSTIN LANDSCAPE AND LIGHTING DISTRICT FOR FISCAL YEAR 2018-2019e AGENDA REPORT Reviewed: eldm W- City Manager AVII-1 Finance Director N/A MEETING DATE: JUNE 5, 2018 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 2018-2019 SUMMARY The Tustin Landscape and Lighting District Engineer's Report was completed and approved by the City Council at their May 1, 2018 meeting. At that meeting, the City Council declared its intention to levy annual assessments and set a public hearing for June 5, 2018. 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. 18-13 confirming the annual assessments for Fiscal Year 2018-2019. 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 2018-2019; and 2. Adopt Resolution No. 18-13 confirming the annual assessments for Fiscal Year 2018-2019. 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 2018-2019 budget is $1,114,000 with proposed assessments of $658,127. Included in the assessments is a charge of $10,884.59 to the City for 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 2018-2019, the City must consider additional funding to cover a deficit currently projected at $455,873 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 2017-2018 to be approximately $2,090,000. CORRELATION TO THE 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. Tustin Landscape and Lighting District June 5, 2018 Page 2 BACKGROUND 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 5,705 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 since Fiscal Year 2009-2010 and are proposed to be utilized for 2018-2019. The Finance Department has projected the RAD 95-1 Fund balance at the end of FY 2017-2018 to be approximately $2,090,000. 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 2017 is 3.6%. The District's budget for Fiscal Year 2018-2019 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 2018-2019 budget to be $1,114,000, 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 2018-2019 are $92,189 and $565,938, respectively, for a total operating and maintenance assessment of $658,127. 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 5,705 parcels within the District for Fiscal Year 2018-2019, 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). Tustin Landscape and Lighting District June 5, 2018 Page 3 • 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 following benefit areas are: • Benefit Area "A" (ACLT)........................................................$9.34 per year • Benefit Area "B" (ACLT + PSTL).............................................$82.93 per year • Benefit Area "C" (ACLT +PSLT + LRLT).................................$115.18 per year The Engineer's Report prepared by Harris & Associates has been filed with the City Clerk and contains the following proposed levy of assessments for Fiscal Year 2018-2019 along with a comparable listing to last year's assessment. ASSESSMENT RATE SUMMARY BY LAND USE FY 2017-18 FY 2018-19 BENEFIT AREA A B C A B C LAND USE ACLT ACLT + ACLT+PSTL ACLT ACLT + ACLT+PSTL + PSTL +LRLT PSTL LRLT Single Family Res. ($/Dwelling Unit) $80.05/DU $111.18/DU $82.93/DU $115.18/DU Multi -family Res. ($/Dwelling Unit) $60.04/DU $62.20/DU Non -Residential ($/ac) $480.30/ac $497.58/ac Non -Res - Tustin Market Place ($/ac) $56.04/ac $56.04/ac Golf Course ($/ac) $320.20/ac $331.72/ac Vacant and Parks ($/ac) $160.10/ac $165.86/ac It is recommended that the City Council adopt Resolution No. 18-13 which will confirm the levy of assessments for Fiscal Year 2018-2019 for the landscape maintenance and public street lighting expenses within the Tustin Ranch area. Do u v0sof-Public Stack, P.E. Dir c Works/City Engineer Attachment(s): 1. Resolution No. 18-13 2. Assessment Diagrams (3) S:\City Council Items\2018 Council Items\06-05-2018\TLLD Levy Assessment\Public Hearing and Levy Assessments for 18-19.docx ATTACHMENT 1 Resolution No. 18-13 RESOLUTION NO, 18-13 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 2018-2019 WHEREAS, the City Council of the. City of Tustin, California (hereinafter referred to as the "City Council"), has adopted Resolution No. 18-10 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 1St day of May 2018, with the passage and adoption of Resolution No. 18-11; and WHEREAS, the City Council heretofore by Resolution of Intention No. 18-12 passed and adopted on the 1St day of May 2018, 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. 18-12, fixed Tuesday, June 5, 2018, 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 5, 2018, 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 2018-2019 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 5t' day of June 2018. ELWYN A. MURRAY, 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. 18-13 was duly and regularly passed and adopted at a regular meeting of the City Council held on the 5t' day of June, 2018 by the following vote: COUNCILMEMBER AYES: COUNCILMEMBER NOES: COUNCILMEMBER ABSTAINED: COUNCILMEMBER ABSENT: ERICA N. RABE, City Clerk ATTACHMENT 2 Assessment Diagrams MY OF TUS11N LANDSCAPE AND LIGHTING DISTRICT ASSESSMENT DIAGRAM FOR THE 2018-19 FISCAL YEAR LANDSCAPE MAINTENANCE FACILITIES MAP LEGEND LANDSCAPE MAINTENANCE SLOPE MAINTENANCE Harms &Associates,. 22 Executive Park, Suite 200 — Irvine, CA 92614 PHONE: (949) 655-3900• FAX: (949) 655-3995 MY OF TUSTW LANDSCAPE AND LIGHTING DISTRICT ASSESSMENT DIAGRAM FOR THE 2018-19 FISCAL YEAR ASSESSMENT DIAGRAM/BOUNDARY MAP LEGEND BENEFIT AREA A _ BENEFIT AREA B BENEFIT AREA C CITY BOUNDARY Harris & Associates. 22 Executive Park, Suite 200 —Irvine, CA 92614 PHONE: (949) 655-3900 • FAX: (949) 655-3995 REDUCED SCALE ess-n:be^.uv CffY OF TUSTW LANDSCAPE AND LIGHTING DISTRICT PETERS CANYON ASSESSMENT DIAGRAM REGIONAL��31b; FOR THE PARK 2018-19 FISCAL YEAR LAND USE MAP Alm v LEGEND Resldenlial sr:� �' \ � � m v Commerciol ® -_�� -w" ''si .\,. Vacant Parks Government Gall Course - i My Boundary212 sm-sn er mxu a i ,ab^• � rurdgyr..' - - \•—\ y �. //lam w, -w o.� _ .r v°eWe- _ m 4'0n errli zztv s°�s�°r `� m ye,cr .weary i to m xs m,n t s 3R A or oLN Harris & Associates. 22 Executive Park, Suite 200 — Irvine, CA 92614 PHONE: (949) 655-3900 • FA%: (949) 655-3995