DATE: June 28, 2016
TO: Mayor and City Council
FROM: Development Services Director
SUBJECT
Title
Adopt a Resolution of Intention to Preliminarily Approve the Engineer’s Report and Assessments for Fiscal Year 2017; and set July 19, 2016, as the Public Hearing Date for Such Actions for Consolidated Landscaping and Lighting District No. 96-1, Zones 1 through 13
End
RECOMMENDATION
Recommendation
That the City Council adopts the attached resolution (Attachment I).
Body
SUMMARY
The annual Engineer’s Report (the Report) for Consolidated Landscaping and Lighting District No. 96-1 (the “District”), is included as Attachment II and includes the following information: (1) a description by benefit zone of the improvements to be operated, maintained, and serviced by the District; (2) an estimated budget for each benefit zone for the District; and (3) a list of the assessments proposed to be levied upon each assessable parcel within the District for FY 2017.
The staff recommended FY 2017 assessment rates include three increases (Zones 2, 4, 12), four decreases (Zones 1, 8, 10, 11), and five unchanged (Zones 3, 5, 6, 7, 9, 13) assessment amounts from FY 2016 amounts. As part of establishing the FY 2017 assessment amount, the maximum base annual assessment is evaluated and updated. This amount is the maximum assessment rate that a parcel in a zone can be charged per year. Two of the benefit zones are proposed to be levied at their maximum base annual assessment rate (Zones 6 and 12), while the assessments for the other eleven zones are proposed to be levied below their maximum base annual assessment rate. Only benefit Zones 3 and 7-13 can have their maximum base annual assessment rate increased each fiscal year based upon the prior year’s increase in the consumer price index (CPI). These proposed increases in the maximum base annual assessment rate would be in compliance with the provisions of Proposition 218 because they would not exceed previously established assessment formulas that incorporated an annual CPI adjustment factor.
BACKGROUND
The Landscaping and Lighting Act of 1972 (Streets and Highways Code §22500) is a flexible tool used by local government agencies to form Landscaping and Lighting Districts for the purpose of financing the costs and expenses of operating, maintaining, and servicing landscaping (including parks), and lighting improvements in public areas.
The 1972 Act requires that an annual review and updated Engineer’s Report be prepared to set assessment amounts for landscaping and lighting district zones each fiscal year. The assessment amounts may or may not change from fiscal year to fiscal year, depending upon the operation and maintenance needed to be performed in the zone, and the funding levels required for the operating and capital reserves. The assessment cannot exceed the maximum base annual assessment rates established when the zones were originally formed, plus an annual CPI adjustment (if/where applicable).
In 1996, six separate Landscaping and Lighting Districts, Benefit Zones 1-6, were consolidated into one district, Consolidated Landscaping and Lighting District No. 96-1 (the District), by the adoption of Resolution No. 96-63. In subsequent years, Benefit Zones 7-13 were individually created and annexed into the District. Table 1 on the following page provides general information regarding the year in which each benefit zone was formed and the assessable number of parcels within each benefit zone. This staff report and attached engineer’s report provide benefit, budget, and assessment details for each of the established thirteen zones.
The City administers all capital reserve funds for all benefit zones, which can be used in the event capital facilities or improvements need major repair or replacement due to failure, damage or vandalism. The exception would be for parks which are contracted to be maintained by the Hayward Area Recreation and Park District (HARD), which include three parks located in zones 7, 10, and 12.
Also, for informational purposes, three new changes associated with annexations into Zones 12 and 13, and formation of new Zone 14 are listed on the following table as reference only. City Council actions related to those changes involving adoption of resolutions, approval of engineer’s reports and levying of assessments at public hearings occurred in May and June of this year (see later discussion toward the end of this report).
Table 2 on the following page lists the assessment amounts in FY 2016, the recommended assessment amounts to be levied for FY 2017, and the maximum base annual assessment rates for each benefit zone that were established when the zones were created. As was done for Table 1, information for reference purposes only is provided associated with prior actions this year by the City Council related to Zones 12, 13 and 14.
DISCUSSION
Recommended changes to a zone’s annual assessment rate are based on the assessment revenue required. Staff recommends an increase in the assessment rate if the zone does not have the recommended level of fund balance (operating + capital reserves). On the flip side, if the zone has ample funds in its fund balance to fund both the operating and capital reserve, then staff’s recommendation is to reduce the annual assessment charge. When reviewing the information for each zone below, there are two items to review and consider.
1. Maximum Base Assessment (MBA) - This is the maximum amount a property owner is allowed to be charged annually. This amount is established during the original formation of the zone. The only variable between zones is whether or not the original MBA can be increased annually based on an inflation factor, like the Consumer Price Index (CPI).
2. Assessment Revenue - This is the amount of funds generated by the annual charge to each property owner located within each zone, minus a county administrative charge (1.7%). The assessment rate recommendation depends on three things:
a. Amount of revenue needed to pay annual expenses, which include such things as landscape maintenance, utility expense, and administrative costs. They are estimated each year, based on past years’ experience and future year cost estimates.
b. Amount of “Operating Reserves” needed. This is the amount of “cash flow” needed for each zone to make expenditure payments each month throughout the year. For example, each zone incurs monthly expenses, but only receives property tax revenue from the county three times a year (December, January, and June). Therefore, some cash is needed to fund operations prior to the first revenue stream being received in December. The amount of operating reserves is set at 50% of the “gross assessment amount,” which is the amount of assessment collected prior to the County’s 1.7% administrative charge.
c. Amount of “Capital Reserve needed. This amount is established by calculating zone infrastructure items, along with their life span, replacement cost, and future cost based on CPI. For all capital items in each zone (with the exclusion of parks maintained by HARD), the zones are responsible for capital repair and replacement. The capital reserve is established to keep a “savings account” for these anticipated future expenses.
Information and assessment recommendations for each zone are outlined below. Additional zones’ details are located in Attachment II.
Zone 1 - Huntwood Avenue & Panjon Street
FY 2017 Assessment Amount per Parcel: $175.00
• Maximum base assessment amount: is unchanged from the original amount of $295.83 per parcel, set when the zone was created in 1990.
• Annual CPI increase: the maximum base assessment amount cannot be increased annually based upon the prior year’s change in the CPI.
• Assessment revenue: the FY 2017 amount needed to operate and maintain the facilities and contribute to the capital reserve is: $5,250.00.
• Annual assessment charge: each of the 30 parcels shall be apportioned an equal share of the total assessment for this zone as the special benefit derived by the individual parcels is indistinguishable from each other. The FY 2017 per parcel charge will decrease from the FY 2016 amount of $265.64 to $175.00 for FY 2017. This amount is below the maximum base assessment, and is sufficient for maintaining levels of service and for keeping a reserve balance. In future years, if there is a need for additional funds, the assessment amount may be increased up to the maximum base assessment amount.
• Reason for assessment decrease: The assessment rate for FY 2017 is recommended to be decreased based on the City’s analysis of the financial stability of the zone. The recommended assessment rate for FY 2017 will generate revenues that are adequate to pay for the expected level of maintenance, provide adequate cash flow for operating expenses, and to maintain a prudent capital reserve. Current operating and capital reserve balances are sufficient to pay for future replacement of irrigation infrastructure. Therefore, a reduction in the assessment rate is recommended. The decreased assessment falls below the maximum base assessment amount by $120.83, or 41%.
Zone 2 - Harder Road & Mocine Avenue
FY 2017 Assessment Amount per Parcel: $153.58
• Maximum base assessment amount: is unchanged from the original amount of $193.39 per parcel, set when the zone was created in 1991.
• Annual CPI increase: the maximum base assessment amount cannot be increased annually based upon the prior year's change in the CPI.
• Assessment revenue: the FY 2017 amount needed to operate and maintain the facilities and contribute to the capital reserve is: $13,054.30.
• Annual assessment charge: each of the 85 parcels shall be apportioned an equal share of the total assessment for this zone as the special benefit derived by the individual parcels is indistinguishable from each other. The FY 2017 per parcel charge will increase from $93.08 in FY 2016 to $153.58 per parcel in FY 2017. This amount is below the maximum base assessment, and is sufficient for maintaining levels of service and for keeping a reserve balance. In future years, if there is a need for additional funds, the assessment amount may be increased up to the maximum base assessment amount.
• Reason for assessment increase: The assessment rate for FY 2017 is recommended to be increased based on the City’s analysis of the financial stability of the zone. The recommended assessment rate for FY 2017 will generate revenues that are adequate to pay for the expected level of maintenance, provide adequate cash flow for operating expenses, and to contribute to and build a prudent capital reserve to be able to maintain and replace irrigation infrastructure The increased assessment falls below the maximum base assessment amount by $39.81, or 21%.
Zone 3 - Prominence Residential
FY 2017 Assessment Amount per Parcel: $797.06
• Maximum base assessment amount: was increased from the prior year's maximum base assessment amount of $845.50 to $871.03 by applying CPI-U for the San Francisco-Oakland-San Jose MSA (3.02% for the period February 2015 to February 2016).
• Annual CPI increase: the maximum base assessment amount does increase annually based upon the prior year's change in the CPI.
• Assessment revenue: the FY 2017 amount needed to operate and maintain the facilities and contribute to the capital reserve is: $123,544.30.
• Annual assessment charge: each of the 155 parcels shall be apportioned an equal share of the total assessment for this zone as the special benefit derived by the individual parcels is indistinguishable from each other. The FY 2017 per parcel charge will remain the same as the FY 2016 amount of $797.06 per parcel. This amount is below the maximum base assessment, and is sufficient for maintaining levels of service and for keeping a reserve balance. In future years, if there is a need for additional funds, the assessment amount may be increased up to the maximum base assessment amount.
Zone 4 - Hayward Boulevard and Fairview Avenue
FY 2017 Assessment Amount per Parcel: $145.20
• Maximum base assessment amount: is unchanged from the original amount of $180.00 per parcel, set when the zone was created in 1995.
• Annual CPI increase: the maximum base assessment amount cannot be increased annually based upon the prior year's change in the CPI.
• Assessment revenue: the FY 2017 amount needed to operate and maintain the facilities and contribute to the capital reserve is: $25,410.00.
• Annual assessment charge: each of the 175 parcels shall be apportioned an equal share of the total assessment for this zone as the special benefit derived by the individual parcels is indistinguishable from each other. The FY 2017 per parcel charge will increase from $121.00 in FY 2016 to $145.20 per parcel in FY 2017. This amount is below the maximum base assessment, and is sufficient for maintaining levels of service and for keeping a reserve balance. In future years, if there is a need for additional funds, the assessment amount may be increased up to the maximum base assessment amount.
Reason for assessment increase: The assessment rate for FY 2017 is recommended to be increased based on the City’s analysis of the financial stability of the zone. The recommended assessment rate for FY 2017 will generate revenues that are adequate to pay for the expected level of maintenance, provide adequate cash flow for operating expenses, and to contribute to and build a prudent capital reserve to be able to maintain and replace various infrastructure items such as irrigation, gates and fences, an asphalt walkway, and a steel bridge. The increased assessment falls below the maximum base assessment amount by $34.80, or 19%.
Zone 5 - Soto Road & Plum Tree Street
FY 2017 Assessment Amount per Parcel: $198.50
• Maximum base assessment amount: is unchanged from the original amount of $258.67 per parcel, set when the zone was created in 1995.
• Annual CPI increase: the maximum base assessment amount cannot be increased annually based upon the prior year's change in the CPI.
• Assessment revenue: the FY 2017 amount needed to operate and maintain the facilities and contribute to the capital reserve is: $7,543.00.
• Annual assessment charge: each of the 38 parcels shall be apportioned an equal share of the total assessment for this zone as the special benefit derived by the individual parcels is indistinguishable from each other. The FY 2017 per parcel charge will remain the same as the FY 2016 amount of $198.50 per parcel. This amount is below the maximum base assessment, and is sufficient for maintaining levels of service and for keeping a reserve balance. In future years, if there is a need for additional funds, the assessment amount may be increased up to the maximum base assessment amount.
Zone 6 - Peppertree Park
FY 2017 Assessment Amount per linear-foot of street frontage: $2.61
• Maximum base assessment amount: is unchanged from the original amount of $2.61 per linear-foot of street frontage, set when the zone was created in 1982.
• Annual CPI increase: the maximum base assessment amount cannot be increased annually based upon the prior year's change in the CPI.
• Assessment revenue: the FY 2017 amount needed to operate and maintain the facilities and contribute to the capital reserve is: $13,034.34.
• Annual assessment charge: each of the 11 parcels shall be apportioned an equal share of the total assessment for this zone as the special benefit derived by the individual parcels is indistinguishable from each other. The FY 2017 per parcel charge will remain the same as the FY 2016 amount of $2.61 per linear-foot of street frontage. This is the maximum base amount. This amount is sufficient for maintaining levels of service and for keeping a reserve balance. In future years, if there is a need for additional funds, the assessment amount may be increased up to the maximum base assessment amount.
Zone 7 - Twin Bridges Residential
FY 2017 Assessment Amount per Parcel: $563.52
• Maximum base assessment amount: was increased from the prior year's maximum base assessment amount of $884.35 to $911.06 by applying the CPI-U for the San Francisco-Oakland-San Jose MSA (3.02% for the period February 2015 to February 2016).
• Annual CPI increase: the maximum base assessment amount does increase annually based upon the prior year's change in the CPI.
• Assessment revenue: the FY 2017 amount needed to operate and maintain the facilities and contribute to the capital reserve is: $196,104.96.
• Annual assessment charge: each of the 348 parcels shall be apportioned an equal share of the total assessment for this zone as the special benefit derived by the individual parcels is indistinguishable from each other. The FY 2017 per parcel charge will remain the same as the FY 2016 amount of $563.52 per parcel. This amount is below the maximum base assessment, and is sufficient for maintaining levels of service and for keeping a reserve balance. In future years, if there is a need for additional funds, the assessment amount may be increased up to the maximum base assessment amount.
Zone 8 - Capitola Street
FY 2017 Assessment Amount per Parcel: $150.00
• Maximum base assessment amount: was increased from the prior year's maximum base assessment amount of $632.49 to $651.57 by applying the CPI-U for the San Francisco-Oakland-San Jose MSA (3.02% for the period February 2015 to February 2016).
• Annual CPI increase: the maximum base assessment amount does increase annually based upon the prior year's change in the CPI.
• Assessment revenue: the FY 2017 amount needed to operate and maintain the facilities and contribute to the capital reserve is: $3,600.00.
• Annual assessment charge: each of the 24 parcels shall be apportioned an equal share of the total assessment for this zone as the special benefit derived by the individual parcels is indistinguishable from each other. The FY 2017 charge rate will be reduced from $250.00 in FY 2016 to $150.00 in FY 2017. This amount is below the maximum base assessment, and is sufficient for maintaining levels of service and for keeping a reserve balance. In future years, if there is a need for additional funds, the assessment amount may be increased up to the maximum base assessment amount.
• Reason for assessment decrease: The assessment rate for FY 2017 is recommended to be decreased based on the City’s analysis of the financial stability of the zone. The recommended assessment rate for FY 2017 will generate revenues that are adequate to pay for the expected level of maintenance, provide adequate cash flow for operating expenses, and to maintain a prudent capital reserve. Current operating and capital reserve balances are sufficient to pay for future replacement of irrigation infrastructure. Therefore, a reduction in the assessment rate is recommended. The decreased assessment falls below the maximum base assessment amount by $501.59, or 77%.
Zone 9 - Orchard Avenue
FY 2017 Assessment Amount per Parcel: $20.00
• Maximum base assessment amount: was increased from the prior year's maximum base assessment amount of $168.88 to $173.98 by applying the CPI-U for the San Francisco-Oakland-San Jose MSA (3.02% for the period February 2015 to February 2016).
• Annual CPI increase: the maximum base assessment amount does increase annually based upon the prior year's change in the CPI.
• Assessment revenue: the FY 2017 amount needed to operate and maintain the facilities and contribute to the capital reserve is: $1,480.00.
• Annual assessment charge: each of the 74 parcels shall be apportioned an equal share of the total assessment for this zone as the special benefit derived by the individual parcels is indistinguishable from each other. The FY 2017 per parcel charge will remain the same as the FY 2016 amount of $20.00 per parcel. This amount is below the maximum base assessment, and is sufficient for maintaining levels of service and for keeping a reserve balance. In future years, if there is a need for additional funds, the assessment amount may be increased up to the maximum base assessment amount.
Zone 10 - Eden Shores Residential
FY 2017 Assessment Amount per Parcel: $175.00
• Maximum base assessment amount: was increased from the prior year's maximum base assessment amount of $1,007.03 to $1,037.41 by applying the CPI-U for the San Francisco-Oakland-San Jose MSA (3.02% for the period February 2015 to February 2016).
• Annual CPI increase: the maximum base assessment amount does increase annually based upon the prior year's change in the CPI.
• Assessment revenue: the FY 2017 amount needed to operate and maintain the facilities and contribute to the capital reserve is: $93,450.00.
• Annual assessment charge: each of the 534 parcels shall be apportioned an equal share of the total assessment for this zone as the special benefit derived by the individual parcels is indistinguishable from each other. The FY 2017 charge rate will be reduced from $356.20 in FY 2016 to $175.00 in FY 2017. This amount is below the maximum base assessment, and is sufficient for maintaining levels of service and for keeping a reserve balance. In future years, if there is a need for additional funds, the assessment amount may be increased up to the maximum base assessment amount.
• Reason for assessment decrease: The assessment rate for FY 2017 is recommended to be decreased based on the City’s analysis of the financial stability of the zone. The recommended assessment rate for FY 2017 will generate revenues that are adequate to pay for the expected level of maintenance, provide adequate cash flow for operating expenses, and to maintain a prudent capital reserve. Current operating and capital reserve balances are sufficient to pay for future replacement of various infrastructures. The capital replacement plan includes replacement of park facilities, decorative paving, asphalt resurface, and replacement of irrigation infrastructure. Therefore, a reduction in the assessment rate is recommended. The decreased assessment falls below the maximum base assessment amount by $862.44, or 83%.
• Note: In FY 2016, HARD park maintenance was estimated at $134,500. In January 2016, the City met with Hayward Area Recreation and Park District (HARD) and agreed to reduce the annual maintenance cost. In FY 2017, park maintenance is budgeted at $71,200.
• The Eden Shores Homeowners Association (HOA) administers the landscape maintenance contract for the zone. The HOA invoices the City quarterly for reimbursement of this authorized expense thru the benefit district zone budget.
Zone 11 - Stonebrae Development
FY 2017 Assessment Amount per Parcel (Current Development): $155.96
FY 2017 Assessment Amount per Parcel (Future Development): $82.60
• Maximum base assessment amount: was increased from the prior year's maximum base assessment amount of $1,428.32 to $1,471.41 by applying the CPI-U for the San Francisco-Oakland-San Jose MSA (3.02% for the period February 2015 to February 2016).
• Annual CPI increase: the maximum base assessment amount does increase annually based upon the prior year's change in the CPI.
• Assessment revenue: the FY 2017 amount needed to operate and maintain the facilities and contribute to the capital reserve is: $79,049.04.
• Annual assessment charge: each of the 429 current development parcels shall be apportioned an equal share of the current development's total assessment for this zone as the special benefit derived by the individual parcels is indistinguishable from each other. The FY 2017 charge rate for current development parcels will be reduced from $379.42 in FY 2016 to $155.96 in FY 2017. Each of the 147 future development parcels shall be apportioned an equal share of the future development's total assessment for this zone as the special benefit derived by the individual parcels is indistinguishable from each other. The FY 2017 charge rate for future development parcels will be reduced from $200.94 in FY 2016 to $82.60 in FY 2017. These amounts are below the maximum base assessment, and are sufficient for maintaining levels of service and for keeping a reserve balance. In future years, if there is a need for additional funds, the assessment amount may be increased up to the maximum base assessment amount.
Reason for assessment decrease: The assessment rate for FY 2017 is recommended to be decreased based on the City’s analysis of the financial stability of the zone. The recommended assessment rate for FY 2017 will generate revenues that are adequate to pay for the expected level of maintenance, provide adequate cash flow for operating expenses, and to maintain a prudent capital reserve. Current operating and capital reserve balances are sufficient to pay for future replacement of irrigation infrastructure, concrete and decorative pathways and paving, entrance sign, and specialty lighting. Therefore, a reduction in the assessment rate is recommended. The decreased assessment falls below the maximum base assessment amount by $1,315.50, or 87%.
• Similar to the Eden Shores residential development (Zone 10), the Stonebrae HOA administers the operation and maintenance of the zone. The HOA invoices the City quarterly for reimbursement of authorized expenses thru the benefit district zone budget.
Zone 12 - Eden Shores East
FY 2017 Assessment Amount per Parcel: $194.97
• Maximum base assessment amount: was increased from the prior year's maximum base assessment amount of $189.26 to $194.97 by applying the CPI-U for the San Francisco-Oakland-San Jose MSA (3.02% for the period February 2015 to February 2016).
• Annual CPI increase: the maximum base assessment amount does increase annually based upon the prior year's change in the CPI.
• Assessment revenue: the FY 2017 amount needed to operate and maintain the facilities and contribute to the capital reserve is: $50,887.17.
• Annual assessment charge: each of the 261 parcels shall be apportioned an equal share of the total assessment for this zone as the special benefit derived by the individual parcels is indistinguishable from each other. The FY 2017 per parcel charge will increase from $189.26 in FY 2016 to $194.97 per parcel in FY 2017. This amount is at the maximum base assessment, and is sufficient for maintaining levels of service and for keeping a reserve balance. In future years, if there is a need for additional funds, the assessment amount may be increased up to the maximum base assessment amount.
• Reason for assessment increase: The assessment rate for FY 2017 is recommended to be increased based on the City’s analysis of the financial stability of the zone. The recommended assessment rate for FY 2017 will generate revenues that are adequate to pay for expenses and provide adequate cash flow. In past years, the zone’s maintenance expenses as submitted by HARD depleted the operating reserve (cash flow needed to pay the monthly bills). In January of 2016, HARD and the City executed a MOU to establish maintenance standards and expected maintenance costs, which will help ensure the operating reserve in the future will be sufficient. In order to properly fund the operating reserve, staff recommends an increase to the annual assessment rate. The increased assessment is equal to the maximum base assessment amount of $194.98.
Zone 13 - Cannery Place
FY 2017 Assessment Amount per Parcel: $361.00
• Maximum base assessment amount: was increased from the prior year's maximum base assessment amount of $1,074.04 to $1,106.48 by applying the CPI-U for the San Francisco-Oakland-San Jose MSA (3.02% for the period February 2015 to February 2016).
• Annual CPI increase: the maximum base assessment amount does increase annually based upon the prior year's change in the CPI.
• Assessment revenue: the FY 2017 amount needed to operate and maintain the facilities and contribute to the capital reserve is: $216,239.00.
• Annual assessment charge: each of the 599 parcels shall be apportioned an equal share of the total assessment for this zone as the special benefit derived by the individual parcels is indistinguishable from each other. The FY 2017 per parcel charge will remain the same as the FY 2016 amount of $361.00 per parcel. This amount is below the maximum base assessment, and is sufficient for maintaining levels of service and for keeping a reserve balance. In future years, if there is a need for additional funds, the assessment amount may be increased up to the maximum base assessment amount.
Proposition 218 Compliance
Proposition 218 states that if the assessments levied do not exceed a previously approved assessment formula, then the assessments are in compliance with Proposition 218. In accordance with the original assessment formulas, the maximum base annual assessment rates for Zones 3 and 7 through 13 have been adjusted based upon the prior year’s increase in the CPI and are in compliance with Proposition 218.
For FY 2017, all assessments are proposed to be levied in compliance with Proposition 218 and do not require the noticing and balloting of property owners to obtain their approval. Any future increases in the assessment amounts that exceed the maximum base assessment amount would require the noticing and balloting of property owners.
Fiscal Year 2017 Annexations to Zones 12 and 13 and Formation of New Zone 14
For FY 2017, separate engineer’s reports were prepared for annexations to Zones 12 (Spindrift development in Eden Shores) and 13 (Blackstone development in the Cannery) and for formation of a new zone, Zone 14 (La Vista development). Information about the proceedings for these areas is provided below.
Zone 12 - Spindrift at Eden Shores development (Tract 8148)
On May 24, 2016 the City Council approved the Notice of Intent to Levy Assessments and set the Public Hearing for receipt of ballots for June 21, 2016 for the annexation of the Spindrift at Eden Shores project into existing Zone 12 of the District. The City Council approved the assessments for the annexation of zone 12 at its June 14, 2016 meeting. This annexation is not part of the determination of assessments for the attached Engineer’s Report; however it will be incorporated into the annual Engineer’s Report commencing next fiscal year, FY 2018. A total of 118 new lots are scheduled to be created and added to existing Zone 12 (Phase I, which was previously approved, created 66 new lots, while Phase II (project pending) is scheduled to approve 52 additional lots.) The approved 66 vacant lots are being assessed at 30% of the maximum assessment ($58.49 per parcel) while vacant. Once homes are built and Certificates of Occupancy are issued, the assessment will rise to an amount at or below the maximum assessment of $194.97. The new additions to Zone 12 will be assessed in a manner similar to the existing 261 lots in Zone 12, which currently pay for the maintenance of improvements at the Alden E. Oliver Sports Park.
Zone 13 - Blackstone at the Cannery development (Tract 7894)
On May 17, 2016, the City Council held a Public Hearing and approved the annexation of the Blackstone at the Cannery Project to Zone 13. Since the information was provided to the City Council as a separate action this year, this update is provided here as reference only, with the assessment information not being a part of this year’s report. The project created 157 new lots (133 new lots in Zone A, with a maximum assessment of $407.86; and 24 new lots in Zone B, with a maximum assessment of $428.25). Since the lots are vacant at this time, they will be assessed at 30% of the maximum rate initially. Once homes are built and Certificates of Occupancy are granted, the assessment will rise to an amount at or below the maximum assessment. The new addition to Zone 13 will pay for the maintenance and servicing of improvements to Panhandle Park, as well as perimeter and setback landscaping, irrigation, and lighting.
Zone 14 - La Vista development (Tract 7620)
On May 24, 2016, the City Council approved the Notice of Intent to Levy Assessments and set the Public Hearing for receipt of ballots for June 14, 2016 for the formation of Zone 14. The City Council approved the assessments for the La Vista Development (Zone 14) at their June 14, 2016 meeting. This new zone is not part of the determination of assessments for this engineer’s report; however it will be incorporated in next year’s annual engineer’s report. The project was previously approved to create 179 new lots. These lots will be initially assessed at 30% rate while vacant ($176.92 per parcel). Once the homes are built, and Certificates of Occupancy are issued, the assessment will rise to an amount at or below the maximum base assessment of $589.73. The assessments will pay for the maintenance and servicing of the improvements to street lighting, setback landscaping, irrigation, paved trails, and bioswales (landscape elements designed to remove silt and pollution from surface runoff water).
FISCAL IMPACT
There is no fiscal impact to the City’s General Fund from this recommendation because expenditures are to be paid for by the District fund accounts, with some augmentation from operating and capital reserve balances for some zones.
PUBLIC CONTACT
The annual zone property owner information meeting was held on May 19, 2016. A total of 2,910 property owners were mailed a notice, inviting them to attend the information meeting. At the meeting, staff was available to explain the District’s responsibilities, base maximum assessment amounts, zone budgets, and funding; and property owners were given the opportunity to ask questions regarding the proposed assessments and services. Three property owners attended the meeting.
Prior to the public hearing on July 19, 2016, a legal notice will be published once in the The Daily Review newspaper and property owners will be mailed a notice regarding their FY 2017 zone information. Property owners may also attend and comment during the July 19, 2016 public hearing.
NEXT STEPS
If the City Council adopts the attached resolution of intention, it will hold a noticed public hearing on July 19, 2016, to consider approving the Engineer’s Report and ordering the levy of assessments for FY 2017.
Prepared by: Denise Blohm, Management Analyst II, Maintenance Services Department
Peter Rei, PE, PLS, Contract Development Review Engineer, Development Services Department
Recommended by: David Rizk, AICP, Development Services Director
Todd Rullman, Maintenance Services Director
Morad Fakhrai, Director of Public Works - Engineering and Transportation
Approved by:
Fran David, City Manager
Attachments:
Attachment I Resolution
Attachment II Preliminary Engineer’s Report