HomeMy WebLinkAbout12 CONDUCT PUBLIC HEARING TO CONSIDER LEVYING OF ANNUAL ASSESSMENTS FOR TLLD FY 24 25DocuSign Envelope ID: FA3E7752-63FE-4EB1-A90B-946043B897C0
Agenda Item 12
AGENDA REPORT Reviewed: ADS
1W City Manager DS
Finance Director E�
MEETING DATE: JUNE 4, 2024
TO: NICOLE BERNARD, ACTING CITY MANAGER
FROM: MICHAEL GRISSO, ACTING DIRECTOR OF PUBLIC WORKS
SUBJECT: CONDUCT PUBLIC HEARING TO CONSIDER LEVYING OF ANNUAL
ASSESSMENTS FOR THE TUSTIN LANDSCAPE AND LIGHTING DISTRICT
FOR FISCAL YEAR 2024-2025
SUMMARY
The Tustin Landscape and Lighting District Engineer's Report was completed and approved by the
City Council at their May 7, 2024 meeting. At that meeting, the City Council declared its intention to
levy annual assessments and set a public hearing for June 4, 2024. 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. 24-34 confirming the annual assessments for Fiscal Year
2024-2025.
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 2024-2025; and
2. Adopt Resolution No. 24-34 confirming the annual assessments for Fiscal Year 2024-2025.
FISCAL IMPACT
Landscape maintenance and public street lighting expenses within the Tustin Ranch area are
recovered through the levy of the annual assessments for the District and a General Benefit
Contribution. The proposed Fiscal Year 2024-2025 budget is $900,800 with proposed assessments
of $813,262, including City paid assessments totaling $13,659.93 for parkland and facilities which
will be paid through the City's General Fund. The Engineer's Report calculates a General Benefit
Contribution of $87,538, which is also paid through the City's General Fund operating budget.
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
DocuSign Envelope ID: FA3E7752-63FE-4EB1-A90B-946043B897C0
Tustin Landscape and Lighting District
June 4, 2024
Page 2
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. Annual deficits
were a result of planned annual landscape enhancements in the District in excess of normal
maintenance activities. There is no longer sufficient funding in RAD 95-1 to offset annual deficits
related to District landscape enhancements.
In 2021, property owners were provided an opportunity to vote on increasing the annual assessment
to bring revenue in line with the cost to provide ongoing landscape maintenance and enhancements
in the Tustin Ranch community. There was not sufficient property owner support to increase to the
assessment and therefore, annual expenses have been reduced accordingly per the amended
workplan approved by City Council on September 21, 2021. Service reductions include the following:
• Landscape maintenance reduced from monthly to every other month.
• All plant replacement eliminated (previously—$200,000 annually).
• Tree trimming extended from every other year to every three years.
• Limited tree planting.
• Irrigation reduced and at times turned off.
Services to ensure public safety such as street lighting and removal of dead trees were not reduced.
Staff has also prioritized repair of irrigation leaks to avoid unnecessary costs and maintaining a
sufficient watering schedule for shrubs and trees. Turf is generally susceptible to drought and staff
has struggled to keep parkway turf healthy as summer approaches each year. On July 1, when new
funds are available, watering is increased to ensure the landscape survives the heat of late summer
and early fall.
Staff will soon be engaging with Homeowners Associations and property owners within Tustin Ranch
to gauge the community's desired service level and sentiment surrounding an increase in the
assessment for Fiscal Year 2025-2026. Based on information gathered, staff will create a proposed
budget and engage a consulting engineer to re -analyze the District. This will be followed by balloting
of the District property owners as a vote to increase assessments. Property owner
support/opposition is based on the weighted responses received. Those who choose not to
participate have no impact on the outcome.
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 2023 is 3.5%. The District's budget for Fiscal Year 2024-2025 has been increased
per the maximum allowed by Proposition 218 to offset anticipated increases in operating expenses.
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Tustin Landscape and Lighting District
June 4, 2024
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 2024-2025 budget to be $900,800,
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 2024-
2025 are $74,653 and $738,609 respectively, for a total operating and maintenance assessment of
$813,262. 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 2024-2025, which is unchanged from last
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)........................................................$7.50 per year
Benefit Area "B" (ACLT + PSTL).............................................$103.54 per year
Benefit Area "C" (ACLT +PSLT + LRLT)...................................$131.08 per year
The Engineer's Report prepared by Harris & Associates has been filed with the City Clerk and
contains the following proposed levy of assessments for Fiscal Year 2024-2025 along with a
comparable listing to last year's assessment.
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Tustin Landscape and Lighting District
June 4, 2024
Page 4
ASSESSMENT RATE SUMMARY BY LAND USE
FY 2023-24
FY 2024-25
BENEFIT AREA
A
B
C
A
B C
LAND USE
ACLT
ACLT +
ACLT+PSTL
ACLT
ACLT +
ACLT+PSTL
PSTL
+LRLT
PSTL
+LRLT
Single Family Res. ($/Dwelling Unit)
$100.05/DU
$119.34/DU
$103.54/DU
$131.08/DU
Multi -family Res. ($/Dwelling Unit)
$75.04/DU
$77.66/DU
Non -Residential ($/ac)
$600.30/ac
$621.24ac
Non -Res - Tustin Market Place ($/ac)
$24.84/ac
$45.00/ac
Golf Course ($/ac)
$400.20/ac
$414.16ac
Vacant and Parks ($/ac)
$200.10/ac
$207.08/ac
It is recommended that the City Council adopt Resolution
assessments for Fiscal Year 2024-2025 for the landscap
expenses within the Tustin Ranch area.
a,",q for
Michael Gri so
Acting Director of Public Works
Attachment(s): 1. Resolution No. 24-34
2. Assessment Diagrams (3)
e
No. 24-34 which will confirm the levy of
maintenance and public street lighting
DocuSign Envelope ID: FA3E7752-63FE-4EB1-A90B-946043B897C0
ATTACHMENT 1
Resolution No. 24-34
DocuSign Envelope ID: FA3E7752-63FE-4EB1-A90B-946043B897C0
RESOLUTION NO. 24-34
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 2024-2025
WHEREAS, the City Council of the City of Tustin, California (hereinafter referred
to as the "City Council"), has adopted Resolution No. 24-05 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 7t" day of May
2024, with the passage and adoption of Resolution No. 24-30; and
WHEREAS, the City Council heretofore by Resolution of Intention No. 24-31
passed and adopted on the 7t" day of May 2024, 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. 24-31, fixed
Tuesday, June 4, 2024, 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 4, 2024, were formally received and reflected in the City Council
minutes of said meeting; and
Resolution 24-34
Page 1 of 3
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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 2024-2025 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 4th day of June 2024.
AUSTIN LUMBARD,
Mayor
Resolution 24-34
Page 2of3
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ATTEST:
ERICA N. YASUDA,
City Clerk
APPROVED AS TO FORM:
DOCUSigned by:
a'4 4
DA $E37Kr1EtqD-I ,
City Attorney
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. 24-34 was duly and regularly passed
and adopted at a regular meeting of the City Council held on the 4t" day of June 2024 by
the following vote:
COUNCILMEMBER AYES:
COUNCILMEMBER NOES:
COUNCILMEMBER ABSTAINED:
COUNCILMEMBER ABSENT:
COUNCILMEMBER RECUSED:
ERICA N. YASUDA,
City Clerk
Resolution 24-34
Page 3 of 3
DocuSign Envelope ID: FA3E7752-63FE-4EB1-A90B-946043B897C0
ATTACHMENT 2
Assessment Diagrams (3)
DocuSign Envelope ID: FA3E7752-63FE-4EB1-A90B-946043B897C0
CITY OF TUSTIN
LANDSCAPE AND LIGHTING DISTRICT
ASSESSMENT DIAGRAM
FOR THE
2024-25 FISCAL YEAR
LANDSCAPE MAINTENANCE FACILITIES MAP
LEGEND
LANDSCAPE MAINTENANCE
SLOPE MAINTENANCE
IF
E 101 Progress, Suite 250 — Irvine, CA 92618
PHONE: (949) 655-3900 FAX: (866) 785-0180
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DocuSign Envelope ID: FA3E7752-63FE-4EB1-A90B-946043B897CO
CrTY OF TUSTIN
LANDSCAPE AND LIGHTING DISTRICT
ASSESSMENT DIAGRAM
FOR THE
2024-25 FISCAL YEAR
ASSESSMENT DIAGRAM/BOUNDARY MAP
LEGEND
BENEFIT AREA A
BENEFIT AREA B
BENEFIT AREA C
CITY BOUNDARY
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