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HomeMy WebLinkAbout09 TUSTIN LANDSCAPE AND LIGHTING DISTRICT BUDGET ADJUSTMENT DocuSign Envelope ID: D7F3131 B8-F671-4BAF-B089-C5AD160135C913 • Agenda Item 9 AGENDA REPORT Reviewed: os City Manager Finance Director N/A MEETING DATE: SEPTEMBER 21, 2021 TO: MATTHEW S. WEST, CITY MANAGER FROM: DOUGLAS S. STACK, DIRECTOR OF PUBLIC WORKS/CITY ENGINEER SUBJECT: TUSTIN LANDSCAPE AND LIGHTING DISTRICT BUDGET ADJUSTMENT SUMMARY During the spring of 2021, property owners in the Tustin Landscape and Lighting District were given the opportunity to submit a ballot in support of or opposition to increasing the annual assessment on their properties in order to sustain the existing level of landscape maintenance and lighting service throughout the Tustin Ranch area. Ballots were tabulated on June 15, 2021 and there was not sufficient support from the property owners to increase assessments. The final results were provided to the City Council at their meeting on July 20, 2021. To maintain a balanced budget, expenditures will need to be reduced from $1,240,100 to $812,218. RECOMMENDATION It is recommended that the City Council: 1. Approve the amended workplan and budget adjustment outlined in this report; and 2. Authorize the Director of Public Works/City Engineer to execute a contract amendment with Mariposa Landscapes, Inc. to reduce maintenance services provided within the Tustin Landscape and Lighting District. FISCAL IMPACT Historically, the landscape maintenance and public street lighting expenses within the Tustin Ranch area have been funded through three funding sources: 1) property owner paid assessments, 2) a General Benefit Contribution as set forth in the annual Engineer's Report for the TLLD, and 3) remaining construction funds in Reassessment District 95-1 (RAD 95-1). The RAD 95-1 fund will be exhausted during FY 2020-2021. Staff has prepared a new workplan and budget for the TLLD to ensure expenditures are in line with revenue. CORRELATION TO THE STRATEGIC PLAN This item contributes to the fulfillment of the City's Strategic Plan Goal C: Financial Strength by anticipating changes in revenue and adjusting forecasts. DISCUSSION A comparison of the approved and recommended budgets for the TLLD is provided on the following page. The recommended workplan and related budget focus on public safety associated with street lighting and tree trimming and removal, retention of landscape through continued watering, and irrigation repairs. The frequency of general landscape maintenance tasks such as mowing and weeding will change from a 6 to 8 week schedule to a 12 to 16 week schedule, which is adjusted DocuSign Envelope ID: D7F3131 B8-F671-4BAF-B089-C5AD160135C913 Tustin Landscape and Lighting District Budget Update September 21, 2021 Page 2 throughout the year based on seasonal plant growth rates. Installation of new plant material, including trees, has been removed from the budget. BUDGET ITEM APPROVED PROPOSED AMOUNT REDUCTION Annual Engineer's Report $12,000 $12,000 County Assessor's Charge $2,100 $2,100 Landscape Maintenance $660,000 ($267,382) $392,618 Landscape Refurbishments $97,500 ($97,500) $0 Irrigation Repair $142,500 $142,500 Tree Maintenance $155,000 ($55,000) $100,000 Street Light Energy Arterials & Collectors $48,000 $48,000 Street Light Energy Local $7,000 $7,000 Energy for Irrigation Controls $16,000 ($8,000) $8,000 Water $100,000 $100,000 TOTAL $1,240,100 $427,882 $812,218 Staff has been working closely with Mariposa Landscapes, Inc. regarding modifications to the contract for landscape maintenance services within the TLLD. If approved by the City Council, the changes outlined in this report will be implemented promptly. DoZtVof�lPublic Stack, P.E. Di Works/City Engineer I