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HomeMy WebLinkAbout08 TUSTIN LANDSCAPE ANG LIGHTING DISTRICTDocuSign Envelope ID: 95B688E9-C404-4AF4-AB82-F6ECBC9ACEB7 Agenda Item 8 AGENDA REPORT Reviewed. Ds City Manager Finance Director MEETING DATE: APRIL 6, 2021 TO: MATTHEW S. WEST, CITY MANAGER FROM: DOUGLAS S. STACK, DIRECTOR OF PUBLIC WORKS/CITY ENGINEER SUBJECT: ADOPT RESOLUTIONS ORDERING THE PREPARATION OF THE ENGINEER'S REPORT FOR THE TUSTIN LANDSCAPE AND LIGHTING REASSESSMENT DISTRICT 2021 AND THE ENGINEER'S REPORT FOR THE TUSTIN LANDSCAPE AND LIGHTING DISTRICT LEVY OF ANNUAL ASSESSMENTS FOR FISCAL YEAR 2021-2022 SUMMARY The Tustin Landscape and Lighting District provides funding for the maintenance of perimeter landscaping on the arterial streets and for the operation and maintenance of street lighting on public roads within the Tustin Ranch area. Resolution No. 21-23 orders the preparation of the Engineer's Report for the Tustin Landscape and Lighting Reassessment District 2021 (Reassessment District 2021) for Fiscal Year 2021-2022. This will be followed by sending a ballot to the owner of record of each parcel within the boundaries of the Reassessment District 2021 to vote their support for forming a new Reassessment District or maintaining the levy within the District as it currently exists. If there is insufficient support for the formation of the Reassessment District 2021, an engineering analysis will be required to identify property benefits and to levy assessments in the existing District. Resolution No. 21-24 orders the preparation of the Engineer's Report for the Tustin Landscape and Lighting District Levy of Annual Assessments for Fiscal Year 2021-2022. RECOMMENDATION It is recommended that the City Council: Adopt Resolution No. 21-23 ordering the preparation of the Engineer's Report for the Tustin Landscape and Lighting Reassessment District 2021 Levy of Annual Assessments for Fiscal Year 2021-2022; and 2. Adopt Resolution No. 21-24 ordering the preparation of the Engineer's Report for the Tustin Landscape and Lighting District Levy of Annual Assessments for Fiscal Year 2021-2022. FISCAL IMPACT Sufficient funds are budgeted and appropriated in the Tustin Landscape and Lighting District Fund to cover this work. Additionally, the costs for operating and maintaining the District are offset through the levy of the annual assessments for the District. DocuSign Envelope ID: 95B688E9-C404-4AF4-AB82-F6ECBC9ACEB7 Order Preparation of Engineer's Report for the Tustin Landscape and Lighting District April 6, 2021 Page 2 CORRELATION TO THE STRATEGIC PLAN Assessments collected through the Tustin Landscape and Lighting District contribute to the fulfillment of the City's Strategic Plan Goal B: Protection of City Assets by ensuring Tustin is an attractive, safe, and well-maintained community in which people feel pride. BACKGROUND AND DISCUSSION The Tustin Landscape and Lighting District provides funding for the maintenance of perimeter landscaping on the arterial streets and for the operation and maintenance of street lighting on public roads within the Tustin Ranch area. As it currently exists, the maintenance expenses for the District exceed the revenue generated from assessments. Staff has been using surplus bond proceeds from the original construction of the Tustin Ranch area to supplement the assessment revenue since Fiscal Year 2009-2010. The surplus bond proceeds are nearly exhausted. A copy of the May 5, 2020 Council Agenda item approving the Engineer's Report for Tustin Landscaping and Lighting District for Fiscal Year 2020-2021 is attached for reference. The attached resolutions begin two processes for updating the assessments for the Tustin Landscape and Lighting District. Resolution No. 21-23 begins the process to update the assessment methodology, analyze property related benefits and update assessments to be levied beginning FY 2021-2022. This process creates a new Tustin Landscape and Lighting Reassessment District 2021 that will be presented to the owner of record for each parcel in the District boundaries for consideration through balloting and a Public Hearing that is scheduled for June 15, 2021. Ballots are required to be sent to every owner of record no less than forty-five (45) days prior to the Public Hearing. If a majority of the submitted ballots support the formation of the Reassessment District 2021, the City Council may elect to establish the Tustin Landscape and Lighting Reassessment District 2021 and levy the new assessments, which would be done through the adoption of a Resolution. This resolution will be considered for City Council action after the Public Hearing and tabulation of ballots. Resolution No. 21-24 begins the process for updating the District, as it occurs every year. Should the Reassessment District 2021 fail to gain enough support from property owners, this Engineer's Report simply updates the existing District by evaluating parcel data, maintenance expenses, and property benefits. Generally speaking, the assessments are updated by the Consumer Price Index for the 12 -month period ending December 31, 2020. Next Steps The future City Council Resolutions required to complete the assessment processes include: April 20; 2021 Adoption of Resolutions approving each of the Engineer's Reports. Adoption of Resolutions declaring the City Council's intention to provide an annual levy of assessments as determined in each of the Engineer's Reports. Adoption of a Resolution setting the date for a Public Hearing on June 15, 2020. \\tustinca.org\ch\PW\City Council Items\2021 Council Items\04-06-2021\TLLD - Order Preparation of Engineers Repo rt\Preparation Eng Rpt for TOLD 21-22.docx DocuSign Envelope ID: 95B688E9-C404-4AF4-AB82-F6ECBC9ACEB7 Order Preparation of Engineer's Report for the Tustin Landscape and Lighting District April 6, 2021 Page 3 June 20, 2021 Two Resolutions will be presented to the City Council for consideration. The first would confirm the levy of annual assessments per the Engineer's Report for the Tustin Landscape and Lighting Reassessment District 2021. This Resolution would only be adopted if a majority of the ballots collected through the end of the Public Hearing and tabulated immediately following the Public Hearing support the Reassessment District 2021. If a majority of the ballots do not support the Reassessment District 2021, a second Resolution will be presented to the City Council for the levy of assessments presented in the Engineer's Report for the existing District. A copy of the Landscape and Lighting District Assessment Diagram is attached for reference. 'Stack, P.E. Public Works/City Engineer Attachment(s): 1. Resolution No. 21-23 — Order Preparation of the Engineer's Report for the Tustin Landscape and Lighting Reassessment District 2021 Resolution No. 21-24 — Order Preparation of the Engineer's Report for the Tustin Landscape and Lighting District Levy of Annual Assessments for FY 2021-2022 3. Landscape and Lighting District Assessment Diagram 4. May 5, 2020 Agenda Report \\tustinca.org\ch\PW\City Council Items\2021 Council Items\04-06-2021\TLLD - Order Preparation of Engineers Report\Preparation Eng Rpt for TL&LD 21-22.docx DocuSign Envelope ID: 95B688E9-C404-4AF4-AB82-F6ECBC9ACEB7 ATTACHMENT 1 Resolution No. 21-23 DocuSign Envelope ID: 95B688E9-C404-4AF4-AB82-F6ECBC9ACEB7 RESOLUTION NO. 21-23 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TUSTIN, CALIFORNIA INITIATING PROCEEDINGS FOR THE FORMATION OF THE TUSTIN LANDSCAPE AND LIGHTING REASSESSMENT DISTRICT 2021 WHEREAS, the City Council of the City of Tustin, pursuant to the provisions of the Landscaping and Lighting Act of 1972, Division 15, Part 2 of the California Streets and Highways Code (Act), desires to initiate proceedings for the formation of the Tustin Landscape and Lighting Reassessment District 2021 (District), and to levy and collect annual assessments for the District commencing in Fiscal Year 2021-2022 to pay for the operations, maintenance, and servicing of landscaping and lighting improvements, and appurtenant facilities related thereto; and WHEREAS, pursuant to Chapter 2, Article 1 Section 22585 of the Act, proceedings for the formation of an assessment district shall be initiated by resolution and that resolution shall generally describe the proposed improvements, describe the proposed assessment district, and specify a distinctive designation for the district and order the engineer to prepare and file a report in accordance with Article 4 (commencing with Section 22565) of Chapter 1 of the Act; and WHEREAS, the City has retained Harris & Associates for the purpose of assisting with the formation of the District, the establishment of annual assessments, and to prepare and file an Engineer's Report (Report) with the City Clerk concerning the formation of the Tustin Landscape and Lighting Reassessment District 2021 and the proposed annual levy of assessments in accordance with the Act and the provisions of the California Constitution Article XIIID (Constitution). NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Tustin does hereby resolve, determine and order as follows: SECTION 1. That the forgoing recitals are true and correct. SECTION 2. That the City proposes to form the Tustin Landscape and Lighting Reassessment District 2021, and to levy and collect annual assessment for the District commencing in Fiscal Year 2021-2022 to pay for the operation, maintenance, and servicing of local landscaping and lighting improvements, and appurtenant facilities related thereto; and SECTION 3. That the District as described in the Report consists of the lots and parcels of land that will receive special benefits from the improvements and services to be provided and are within the boundaries of the City and by reference maps and documents referencing these lots and parcels of land are made part of this Resolution. SECTION 4. That the improvements for which the District is formed generally include, but are not limited to, continued maintenance and operation of streets and sidewalks within the District, including the construction, operation, servicing, and maintenance of landscaping, lighting and appurtenant facilities, including but not limited to, personnel, electrical energy, utilities, materials, contracting services, and other items necessary for the satisfactory operation of these services described as follows: DocuSign Envelope ID: 95B688E9-C404-4AF4-AB82-F6ECBC9ACEB7 ■ Landscaping and Appurtenant Facilities Landscaping, planting, shrubbery, trees, irrigation systems, hardscapes, fixtures, and appurtenant facilities, in public street and sidewalk rights-of-way, including parkways and dedicated easements within the boundary of said District. Lighting and Appurtenant Facilities Poles, fixtures, bulbs, conduits, equipment including guys, anchors, posts and pedestals, metering devices and appurtenant facilities as required to provide for safety lighting in public street and sidewalk rights-of-way and easements within the boundaries of said District. Servicing of the Southern California Edison Company-owned lights shall be furnished by the Southern California Edison Company or its successors or assignees and shall be adequate for the intended purpose. Rates for power and maintenance shall be authorized by the Public Utilities Commission, State of California; and SECTION 5. That Harris & Associates is designated by this City Council as the Engineer of Work for the formation of the Tustin Landscape and Lighting Reassessment District 2021, and is hereby directed to prepare and file with the City an Engineer's Report concerning the formation of the District and the annual levy of assessments in accordance with the requirements of Chapter 1, Article 4 of the Act; and SECTION 6. The City Clerk of the City of Tustin shall certify to the passage and adoption of this Resolution and its approval by the City Council and shall cause the same to be listed in the records of the City. PASSED AND ADOPTED at a regular meeting of the City Council of the City of Tustin held on the 6t" day of April, 2021. LETITIA CLARK, Mayor ATTEST: ERICA N. YASUDA, City Clerk DocuSign Envelope ID: 95B688E9-C404-4AF4-AB82-F6ECBC9ACEB7 STATE OF CALIFORNIA ) COUNTY OF ORANGE ) SS CITY OF TUSTIN ) I, Erica N. Yasuda, 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. 21-23 was duly and regularly passed and adopted at a regular meeting of the City Council held on the 6t" day of April, 2021 by the following vote: COUNCILMEMBER AYES: COUNCILMEMBER NOES: COUNCILMEMBER ABSTAINED: COUNCILMEMBER ABSENT: ERICA N. YASUDA, City Clerk DocuSign Envelope ID: 95B688E9-C404-4AF4-AB82-F6ECBC9ACEB7 ATTACHMENT 2 Resolution No. 21-24 DocuSign Envelope ID: 95B688E9-C404-4AF4-AB82-F6ECBC9ACEB7 RESOLUTION NO. 21-24 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TUSTIN, CALIFORNIA ORDERING THE PREPARATION OF AN ENGINEER'S REPORT FOR THE TUSTIN LANDSCAPE AND LIGHTING DISTRICT LEVY OF ANNUAL ASSESSMENTS FOR FISCAL YEAR 2021-2022 WHEREAS, it is the intention of the City Council of the City of Tustin to levy annual assessments for the 2021-2022 Fiscal Year for the Tustin Landscape and Lighting District; and WHEREAS, changes in existing improvements including new subdivided parcels, new landscaped areas and new street light facilities to be maintained by said District may have occurred; and WHEREAS, Harris and Associates is under contract to provide professional engineering services in connection with said District under the direction of the Director of Public Works/City Engineer. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Tustin that the Director of Public Works/City Engineer is hereby ordered to prepare and file, through Harris and Associates, the Engineer's Report for the Tustin Landscape and Lighting District Levy of Annual Assessments for Fiscal Year 2021-2022. PASSED AND ADOPTED at a regular meeting of the City Council of the City of Tustin held on the 6t" day of April, 2021. LETITIA CLARK, Mayor ATTEST: ERICA N. YASUDA, City Clerk DocuSign Envelope ID: 95B688E9-C404-4AF4-AB82-F6ECBC9ACEB7 STATE OF CALIFORNIA ) COUNTY OF ORANGE ) SS CITY OF TUSTIN ) I, Erica N. Yasuda, 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. 21-24 was duly and regularly passed and adopted at a regular meeting of the City Council held on the 6t" day of April, 2021 by the following vote: COUNCILMEMBER AYES: COUNCILMEMBER NOES: COUNCILMEMBER ABSTAINED: COUNCILMEMBER ABSENT: ERICA N. YASUDA, City Clerk DocuSign Envelope ID: 95B688E9-C404-4AF4-AB82-F6ECBC9ACEB7 ATTACHMENT 3 Landscape and Lighting District Assessment Diagram DocuSign Envelope ID: 95B688E9-C404-4AF4-AB82-F6ECBC9ACEB7 CffY OF TUSi1N LANDSCAPE AND LIGHTING DISTRICT ASSESSMENT DIAGRAM FOR THE 2020-21 FISCAL YEAR ASSESSMENT DIAGRAM/BOUNDARY MAP LEGEND BENEFIT AREA A BENEFIT AREA B BENEFIT AREA C CITY BOUNDARY — - - Harns & Associates=. 22 Executive Park, Suite 200 - Irvine, CA 92614 PHONE: (949) 655-3900 FAX: (949) 655-3995 R\ivafn\jY 10.11\&p,miv\Amit MM -11 EwMayt 4/l/— DocuSign Envelope ID: 95B688E9-C404-4AF4-AB82-F6ECBC9ACEB7 ATTACHMENT 4 May 5, 2020 Agenda Report DocuSign Envelope ID: 95B688E9-C404-4AF4-AB82-F6ECBC9ACEB7 • Agenda Item 4 AGENDA REPORT Reviewed: City Manager ^^ 5W Finance Director Ja MEETING DATE: MAY 5, 2020 TO: MATTHEW S. WEST, CITY MANAGER FROM: DOUGLAS S. STACK, DIRECTOR OF PUBLIC WORKS/CITY ENGINEER SUBJECT: APPROVE THE ENGINEER'S REPORT FOR THE TUSTIN LANDSCAPE AND LIGHTING DISTRICT AND SET A PUBLIC HEARING TO CONSIDER LEVYING FISCAL YEAR 2020-2021 ASSESSMENTS SUMMARY At the February 18, 2020 meeting, the City Council ordered the preparation of an Engineer's Report for the Levy of Annual Assessments for the Tustin Landscape and Lighting District. The Engineer's Report has now been completed and is ready for City Council approval. Additionally, it is requested that the City Council declare its intention to levy annual assessments and set a public hearing for June 2, 2020. RECOMMENDATION It is recommended that the City Council: 1. Adopt Resolution No. 20-24 approving the Engineer's Report for the Tustin Landscape and Lighting District for Fiscal Year 2020-2021; and 2. Adopt Resolution No. 20-25 declaring its intention to levy annual assessments for Fiscal Year 2020-2021 and setting a public hearing for June 2, 2020. FISCAL IMPACT A portion of the landscape maintenance and public street lighting expenses within the Tustin Ranch area are recovered through the levy of the annual assessments for the District. The proposed Fiscal Year 2020-2021 budget is $1,319,100 with proposed assessments of $695,010. Included in the assessments is a charge of $11,615.41 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 2020-2021, the City must consider additional funding to cover a deficit currently projected at $624,090 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 2019-2020 to be approximately $1,025,000. Staff anticipates the RAD 95-1 Construction fund balance will be exhausted by the end of FY 2021- 2022. Staff has hired a consultant to evaluate a new assessment methodology and annual assessment amounts for the District. This effort will be followed by public outreach and mailing of ballots. For assessments, votes are tabulated in proportion to the amount of the assessment each property owner would pay. The assessment may be imposed only if 50 percent or more of the weighted ballots support the assessment. Should there be less than 50 percent support for the new assessment, the current assessment will remain in effect. 62 DocuSign Envelope ID: 95B688E9-C404-4AF4-AB82-F6ECBC9ACEB7 Tustin Landscape and Lighting District May 5, 2020 Page 2 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. 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 5,704 parcels encompassing 457.186 acres. As a result of procedures required by the passage of Proposition 218 on the November 1996 Statewide ballot, which added Article XIID to the State Constitution, the City re -analyzed the District regarding the special benefits associated with the improvements for each property in the District, commencing with Fiscal Year 1997-1998. Notices and ballots to approve the assessment including future adjustments based on increases in the Consumer Price Index (CPI) were mailed in the spring of 1997 to all property owners in the District. Subsequently, at the conclusion of a public hearing on July 7, 1997, the majority of returned ballots, weighted by assessed amount, approved the annual assessments. Assessment Districts AD 85-1 and AD 86-2 were formed in 1986 and 1988, respectively and $132,050,000 in bonds were issued to fund the design and construction of public improvements including streets, traffic signals, drainage facilities, utility improvements, and landscaping. Streets constructed within these Districts included, but were not limited to, Jamboree Road, Tustin Ranch Road, Irvine Boulevard, Bryan Avenue, Portola Parkway and Pioneer Road. On January 15, 1996, Reassessment 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 each year since Fiscal Year 2009-2010 and are proposed to be utilized for 2020-2021. The Finance Department has projected the RAD 95-1 Fund balance at the end of FY 2019-2020 to be approximately $1,025,000. 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 2019 is 3%. The District's budget for Fiscal Year 2020-2021 has been increased per the maximum allowed by Proposition 218 to offset anticipated increases in operating expenses. 63 DocuSign Envelope ID: 95B688E9-C404-4AF4-AB82-F6ECBC9ACEB7 Tustin Landscape and Lighting District May 5, 2020 Page 3 Each year, the City estimates the cost to provide the street lighting and landscape maintenance services within the District. Staff estimates the proposed FY 2020-2021 budget to be $1,319,100, 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 2020-2021 are $50,061 and $644,949 respectively, for a total operating and maintenance assessment of $695,010. 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 2020-2021, which is one less parcel from the previous fiscal year, which represents a parcel consolidation. 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 following benefit areas are: • Benefit Area "A" (ACLT)........................................................$4.88 per year • Benefit Area "B" (ACLT + PSTL).............................................$88.15 per year • Benefit Area "C" (ACLT +PSLT + LRLT)................................. $122.44 per year The Engineer's Report prepared by Harris & Associates has been filed with the City Clerk and contains the following proposed levy of assessments for Fiscal Year 2020-2021 along with a comparable listing to last year's assessment. 64 DocuSign Envelope ID: 95B688E9-C404-4AF4-AB82-F6ECBC9ACEB7 A; BENEFITAREA LAND USE Single Family Res. ($/Dwelling Unit) Multi -family Res. ($/Dwelling Unit) Non -Residential ($/ac) Non -Res - Tustin Market Place ($/ac) Golf Course ($/ac) Vacant and Parks ($/ac) Tustin Landscape and Lighting District May 5, 2020 Page 4 SESSMENT RATE SUMMARY BY LAND USE FY 2019-20 A B ACLT ACLT + PSTL $85.58/DU $64.19/D U $513.48/ac $24.66/ac $342.32/ac $171.16/ac FY 2020-21 C A B C ACLT+PSTL ACLT ACLT+ ACLT+PSTL+ +LRLT PSTL LRLT $118.87/DU $88.15/DU $122.44/DU $66.11 /DU $528.90/ac $29.28/ac $352.60/ac $176.30/ac It is recommended that the City Council adopt the two attached resolutions. These resolutions provide for the following: • Resolution No. 20-24 approves the Engineer's Report for the Tustin Landscape and Lighting District for Fiscal Year 2020-2021. • Resolution No. 20-25 declares the City Council's intention to provide for an annual levy of assessment for the Tustin Landscape and Lighting District to levy and collect assessments pursuant to the Landscape and Lighting Act of 1972. Resolution No. 20-25 also sets the date, time, and place for a public hearing concerning the annual levy of assessment for the District. The hearing is proposed for Tuesday, June 2, 2020 at 5:00 p.m. in the City Council Chamber, 300 Centennial Way, Tustin, California. Stack, P.E. Public Works/City Engineer Attachment(s): 1. Resolution No. 20-24 2, Resolution No. 20-25 3. Engineer's Report for Tustin Landscape and Lighting District, Fiscal Year 2020-2021 S:\City Council Items\2020 Council Items\05-05-2020\Approve and Set Public Hearing TLLD\Set a Public Hearing for TL&LD 20- 21.docx 65