HomeMy WebLinkAbout13 CONDUCT PUBLIC HEARING TO CONSIDER LEVYING OF ANNUAL ASSESSMENTS DocuSign Envelope ID:51DF81391 F-5FF8-4FF6-BODD-F2D4343B304E
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60 AGENDAREPORT Reee eld:
City Manager DS
Finance Director
MEETING DATE: JUNE 15, 2021
TO: MATTHEW S. WEST, 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 2021-2022
SUMMARY
The Tustin Landscape and Lighting District Engineer's Report was completed and approved by the
City Council at their April 20, 2021 meeting. At that meeting, the City Council declared its intention
to levy annual assessments and set a public hearing for June 15, 2021. 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. 21-44 confirming the annual assessments for Fiscal Year
2021-2022.
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 2021-2022; and
2. Adopt Resolution No. 21-44 confirming the annual assessments for Fiscal Year 2021-2022.
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 Year2021-2022 budget is $1,240,100with proposed assessments of$704,651.
Included in the assessments is a charge of $11,615.43 to the City for parkland which will be paid
through the City's general fund operating budget. The Engineer's Report calculates a General
Benefit Contribution of $107,567. In order to meet the District's budget needs at the conclusion of
FY 2021-2022, the City must consider additional funding to cover a deficit currently projected at
$427,899. In prior years, the deficit has been fully funded 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 2020-2021 to be approximately $369,850. This
does not cover the projected deficit and therefore a General Fund allocation of $58,049 will be
needed to ensure service levels are not reduced.
Staff has hired a consultant to evaluate a new assessment methodology and annual assessment
amounts for the District. Ballots have been mailed to property owners to vote in support or in
opposition to increasing annual assessments to fully fund the current level of maintenance. For
assessments, votes are tabulated in proportion to the amount of the assessment each property
DocuSign Envelope ID:51DF81391 F-5FF8-4FF6-BODD-F2D4343B304E
Tustin Landscape and Lighting District
June 15, 2021
Page 2
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 that 50 percent support for the new assessment, the
current assessment will remain in effect.
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.
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 each year since Fiscal Year 2009-2010 and are
proposed to be utilized for 2021-2022. The funding will be exhausted during Fiscal Year 2021-2022
and supplemental funding from the General Fund will be needed to maintain current service levels.
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 2020 is 1.5%. The District's budget for Fiscal Year 2021-2022 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 2021-2022 budget to be $1,240,100,
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 2021-
2022 are $42,434 and $662,218 respectively, for a total operating and maintenance assessment of
$704,652. 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.
DocuSign Envelope ID:5DF81391 F-5FF8-4FF6-BODD-F2D4343B304E
Tustin Landscape and Lighting District
June 15, 2021
Page 3
There are 5,704 parcels within the District for Fiscal Year 2021-2022, which is 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 following benefit areas are:
• Benefit Area "A" (ACLT)........................................................$4.11 per year
• Benefit Area "B" (ACLT + PSTL).............................................$89.47 per year
• Benefit Area "C" (ACLT +PSLT + LRLT).................................$124.28 per year
The Engineer's Report prepared by Harris & Associates has been filed with the City Clerk and
contains the following proposed levy of assessments for Fiscal Year 2021-2022 along with a
comparable listing to last year's assessment.
ASSESSMENT RATE SUMMARY BY LAND USE
FY 2020-21 FY 2021-22
BENEFIT AREA A B C A B C
ACLACLT ACLT+ ACLT+PSTL ACLT+ ACLT+PSTL+
LAND USE ACLT PSTL +LRLT PSTL LRLT
Single Family Res. ($/Dwelling Unit) $88.15/DU $122.44/DU $89.47/DU $124.28/DU
Multi-family Res, ($/Dwelling Unit) $66.11/DU $67.10/DU
Non-Residential($/ac) $528.90/ac $536.82/ac
Non-Res-Tustin Market Place($/ac) $29.28/ac $24.66/ac
Golf Course($/ac) $352.60/ac $357.88/ac
Vacant and Parks($/ac) $176.30/ac $178.94/ac
DocuSign Envelope ID:5DF81391 F-5FF8-4FF6-BODD-F2D4343B304E
Tustin Landscape and Lighting District
June 15, 2021
Page 4
It is recommended that the City Council adopt Resolution No. 21-44 which will confirm the levy of
assessments for Fiscal Year 2021-2022 for the landscape maintenance and public street lighting
expenses within the Tustin Ranch area.
ou a XPublic
Stack,'P.E.
Dir ct r Works/City Engineer
Attachment(s): 1. Resolution No.21-44
2. Assessment Diagrams(3)
S:\City Council Items\2021 Council Items\06-15-2021\TL&LD Public Hearing\Public Hearing and Levy Assessments for 21-22.docx
DocuSign Envelope ID:51DF81391 F-5FF8-4FF6-BODD-F2D4343B304E
ATTACHMENT 1
Resolution No. 21-44
DocuSign Envelope ID:51DF81391 F-5FF8-4FF6-BODD-F2D4343B304E
RESOLUTION NO. 21-44
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
2021-2022
WHEREAS, the City Council of the City of Tustin, California (hereinafter referred to as
the "City Council"), has adopted Resolution No. 21-24 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 201h day of April
2021, with the passage and adoption of Resolution No. 21-26; and
WHEREAS, the City Council heretofore by Resolution of Intention No. 21-27 passed and
adopted on the 20th day of April 2021, 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. 21-27, fixed Tuesday,
June 15, 2021, at 6:00 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 15, 2021, 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
DocuSign Envelope ID:51DF81391 F-5FF8-4FF6-BODD-F2D4343B304E
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 2021-2022 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 15th day of June 2021.
LETITIA CLARK,
Mayor
ATTEST:
ERICA N. YASUDA
City Clerk
DocuSign Envelope ID:51DF81391 F-5FF8-4FF6-BODD-F2D4343B304E
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. 21-44 was duly and regularly passed and adopted at a
regular meeting of the City Council held on the 15th day of June, 2021 by the following vote:
COUNCILMEMBER AYES:
COUNCILMEMBER NOES:
COUNCILMEMBER ABSTAINED:
COUNCILMEMBER ABSENT:
ERICA N. YASUDA,
City Clerk
DocuSign Envelope ID:51DF81391 F-5FF8-4FF6-BODD-F2D4343B304E
ATTACHMENT 2
Assessment Diagrams (3)
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