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Home My WebLink About14 FORMING AND LEVYING ASSESSMENTS WITHIN THE TLLD DocuSign Envelope ID:51DF81391 F-5FF8-4FF6-BODD-F2D4343B304E AGENDA REPORT Ree vieweld m 1g City Manager Finance Director FE MEETING DATE: JUNE 15, 2021 TO: MATTHEW S. WEST, CITY MANAGER FROM: DOUGLAS S. STACK, DIRECTOR OF PUBLIC WORKS/CITY ENGINEER SUBJECT: ADOPT RESOLUTION NO. 21-46 FORMING AND LEVYING ASSESSMENTS WITHIN TUSTIN LANDSCAPE AND LIGHTING REASSESSMENT DISTRICT 2021 AND REPLACING THE EXISTING TUSTIN LANDSCAPE AND LIGHTING DISTRICT SUMMARY 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. Assessments collected through the District do not cover the cost of maintenance. Surplus bond funds have been used since Fiscal Year 2009-2010, as allowed by the California Streets and Highways Code, to fully fund annual maintenance needs within the District boundaries. The surplus funds are nearly exhausted and a new Tustin Landscape and Lighting Reassessment District 2021 (Reassessment District 2021) will need to be formed to ensure annual revenue is not less than expenses. At the April 20, 2021 meeting, the City Council approved the Engineer's Report for the Levy of Annual Assessments for the Tustin Landscape and Lighting Reassessment District 2021 and set a public hearing for June 15, 2021. Ballots were mailed to all property owners on April 30, 2021. At the close of the public hearing, a consultant hired by the City will tabulate all returned ballots to determine if there is sufficient property owner support for creating Reassessment District 2021. RECOMMENDATION It is recommended that the City Council: 1. Conduct a public hearing to receive testimony on the formation of Tustin Landscape and Lighting Reassessment District 2021 and associated assessments to be levied for Fiscal Year 2021-2022; and 2. After tabulation of all ballots, and only if a majority of ballots support the formation of Tustin Landscape and Lighting Reassessment District 2021, adopt Resolution No. 21-46. FISCAL IMPACT The proposed Fiscal Year 2021-2022 budget for the District is $1,241,300. Assessment revenue generated by the Tustin Landscape and Lighting Reassessment District is estimated to be $1,085,597. Included in the assessments is a charge of $16,548 to the City for parkland which will be paid through the City's general fund operating budget. The City is also responsible for general benefits totaling $153,537, which will be paid through the City's general fund operating budget. DocuSign Envelope ID:51DF81391 F-5FF8-4FF6-BODD-F2D4343B304E Tustin Landscape and Lighting Reassessment District 2021 June 15, 2021 Page 2 Should the Tustin Landscape and Lighting Reassessment District 2021 fail to be approved by the property owners in the District, a deficit of$427,899 will exist. Historically, deficit amounts have been paid by the Reassessment District 95-1 (RAD 95-1) Fund. However, the remaining fund balance available for FY 2021-2022 is estimated to be $369,850. To avoid a reduction in services, supplemental funding from the General Fund will be necessary in Fiscal Year 2021-2022 and each year after. 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 MID 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 2020-2021 to be approximately $369,850, which will not fully fund maintenance of the area. Therefore, Reassessment District 2021 has been proposed to property owners for consideration. DocuSign Envelope ID:5DF81391 F-5FF8-4FF6-BODD-F2D4343B304E Tustin Landscape and Lighting Reassessment District 2021 June 15, 2021 Page 3 DISCUSSION An Engineer's Report for the Tustin Landscape and Lighting Reassessment District 2021 has been prepared by Harris & Associates and was approved by the City Council on April 20, 2021. The Report evaluates the special benefits received by each parcel within the District. The Report also analyzes maintenance costs for street lighting and landscape maintenance services within the District. The total cost of maintenance is divided among the parcels on a proportionate share of services received. 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. The assessments presented in the Engineer's Report will fully fund the maintenance activities as budgeted. 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: Existing Proposed • Benefit Area "A" (ACLT).............................................$4.11 / year $3.58 / year • Benefit Area "B" (ACLT + PSTL)..................................$89.47 / year $140.21 / year • Benefit Area "C" (ACLT +PSLT + LRLT)........................$122.44 / year $151.23 / year Depending on the number of ballots returned, counting may continue after the City Council meeting has ended. Should this be the case, the results will be provided to the City Council for consideration at their next regularly scheduled meeting. Consideration of Resolution No. 21-46 can only occur once all ballots have been tabulated. ou a . Stack, P.E. D. ct of Public Works/City Engineer Attachment(s): 1. Resolution No.21-46 2. Assessment Diagrams(3) S:\City Council Items\2021 Council Items\06-15-2021\Reassessment District 2021 Public Hearing\1 Formation of Assessment District.docx DocuSign Envelope ID:51DF81391 F-5FF8-4FF6-BODD-F2D4343B304E ATTACHMENT 1 Resolution No. 21-46 DocuSign Envelope ID:51DF81391 F-5FF8-4FF6-BODD-F2D4343B304E RESOLUTION NO. 21-46 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TUSTIN, CALIFORNIA APPROVING THE FORMATION OF TUSTIN LANDSCAPE AND LIGHTING REASSESSMENT DISTRICT 2021 AND CONFIRMING THE ANNUAL ASSESSMENTS FOR FISCAL YEAR 2021-2022 WHEREAS, the City Council by Resolution No. 21-23 initiated proceedings for the formation of the Tustin Landscape and Lighting Reassessment District 2021 pursuant to the provisions of the Landscaping and Lighting Act of 1972, Part 2, Division 15 of the California Streets and Highways Code (Act) as amended and the California Constitution Article XIIID (Constitution), and to levy and collect annual assessments for the District commencing on Fiscal Year 2021-2022 to pay for the operation, maintenance, and servicing of local landscaping and lighting improvements, and appurtenant facilities related thereto; and WHEREAS, by said Resolution No. 21-23, the City Council ordered 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, Harris &Associates as the Engineer of Work prepared and filed an Engineer's Report with the City Clerk concerning the formation of Tustin Landscape and Lighting Reassessment District 2021 and the proposed annual levy of assessments in accordance with the provisions of Chapter 1, Article 4 of the Act and the provisions of the Constitution; and WHEREAS, the City Council, through adoption of Resolution No. 21-25, approved the Engineer's Report; and WHEREAS, the City Council set the time and place for a Public Hearing to consider the formation of the District and for the authorization to levy annual assessments therein. The City council also ordered a notice of Public Hearing, accompanied by assessment increase ballots, be given to the record owners of all properties within the District; and WHEREAS, notice of said Public Hearing accompanied by assessment formation ballots were mailed to the record owners of all properties within the District forty-five (45) days in advance of the Public Hearing, and WHEREAS, the City Council hereby finds that the assessment ballots submitted opposed to the formation Tustin Landscape and Lighting Reassessment District 2021 did not exceed or equal the assessment ballots submitted in support. Therefore, a majority protest to the formation of the District does not exist. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Tustin that it determines and orders as follows: SECTION 1: That the forgoing recitals are true and correct. SECTION 2: The City Council hereby finds and determines that the procedures for the consideration of the formation of Tustin Landscape and Lighting Reassessment District 2021 have been undertaken in accordance with State Law. DocuSign Envelope ID:51DF81391 F-5FF8-4FF6-BODD-F2D4343B304E SECTION 3: Assessment ballots were mailed as required by law to the record owners of all properties proposed to be assessed within the District. The assessment ballots that were completed and received by the City Clerk prior to the close of the Public Hearing have been tabulated in accordance with State Law, and the results have been submitted to the City Council. SECTION 4: The City Council hereby finds that the assessment ballots submitted opposed to the formation Tustin Landscape and Lighting Reassessment District 2021 did not exceed or equal the assessment ballots submitted in support. Therefore, a majority protest to the formation of the District does not exist. SECTION 5: The annual assessments for Fiscal Year 2021-2022 as set forth in the Engineer's Report are hereby confirmed. SECTION 6: Passage of this Resolution shall constitute a levy of an assessment for the fiscal year referred to in the assessment confirmed herein. SECTION 7: 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. 21-46 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 DocuSign Envelope ID:51DF81391 F-5FF8-4FF6-B0DD-F2D4343B304E REDUCED SCALE \ ]JyY1N IIYI Y wy+n-w owl Y AKT IIJ ]'trot-01 owl y IM CITY OF TUSTIN s TUSTIN LANDSCAPE AND LIGHTING �•e REASSESSMENT DISTRICT 2021 PETERS AY,o+ •� Ar ASSESSMENT DIAGRAM CANYON FOR THE REGIONALIA 3 PARK 1 2021-22 FISCAL YEAR IW IWr BOUNDARY MAP AW 4 INIo LEGEND BENEFIT AREA A nxr.nvn w.Iswe w=Yi BENEnT AREA B JeJ-wl-0 YJs es iuri r wx-elaf BENEFIT AREA C CITY BOUNDARY "".gam •'�' -w1-01 AJu m nL.oJ] saw-0I AJu u a so]�w-0I nw le "► eoa-m-u neu w '�nwu tl y� '`Aq�J,eJue ],�n names w z]-ma�nAu w Ax* I �o'Ye-IS-In wY%1 IIIY tlJ xtl11wN Jeww LIIT]w'eP�+Jpl�ll`H e]F}J-fpl M�mm I Jnyuy,w M1tl-G'10 -saw, au d� I— W-.11W-11111 11 wry e. AM Zr �� TMeeIrJL YI-IwVI AWTb !ti fe IIM• IIy If— ew IfYT w.1W _ Sol-Ion, � w Yl�li-w it f 11 Rte! �Y1 Lev !! 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CITY OF TUSTIN TUSTIN LANDSCAPE AND LIGHTING REASSESSMENT DISTRICT 2021PETERS ASSESSMENT DIAGRAM CANYON CANYON FOR THE REGIONALA. 2021-22 FISCAL YEAR PARK ""m s!a-0/1-0!naw n,n nam u asn u�s�ni--0oirwue+n�s�i� x..rayl LAND USE EXHIBIT Ste-all 'res A IW m ➢IET L>F <IO IIW W IN1a LEGEND ^" sL1a161 +��N a401y1 0�l M Residential / lar.ww+W lm1 �i'iti aI? 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