Item 8 - Reso Est. Assessments for LMD 86-3 for Fiscal Year 2020-21July 21, 2020, Item #8~ AGENDA REPORT City of Poway CITYCOU CIL DATE: TO: FROM: CONTACT: SUBJECT: Summary: July 21, 2020 Honorable Mayor and Members of the City Cou~il Eric Heidemann, Director of Public Works { / Will Wiley, Assistant Director of Public Works for Maintenance Operationj/ (858) 668-4705 or wwiley@poway.org Resolution Establishing Assessments for Poway Landscape Maintenance District 86-3 to be Collected on the San Diego County Property Tax Roll for Fiscal Year 2020-21 At the City Council meeting on June 16, 2020, Council adopted Resolution No. 20-042 declaring the intention to levy and collect assessments within Landscape Maintenance District (LMD) 86-3 and set the public hearing for July 21, 2020. Both commercial and residential assessments are proposed to remain unchanged from the Fiscal Year 2019-20 rates. Service level reductions were implemented in Zone A during Fiscal Year 2009-10 to ensure District expenses did not exceed projected revenue. Zone A service level was reduced to level C and may be subject to further adjustment during Fiscal Year 2020-21 depending on frequency and magnitude of unplanned events. Zone B balances and revenues are projected to be sufficient to remain at service level A. Recommended Action: It is recommended that the City Council adopt the Resolution. Discussion: LMD 86-3 was formed on May 20, 1986, to maintain landscape improvements installed in conjunction with new subdivisions within the boundaries of the District. LMD 86-3, by Zone, includes the following developments: Zone A (159 residential parcels assessed) TRACT PROJECT NAME TM 3994 The Pond 1 of 5
July 21, 2020, Item #8TTM TTM 88-03 94-02 Sycamore Springs Poway Oaks Zone B (16 non-residential parcels; 205.936 commercial units and two multi-residential, low-income housing apartments having 40.36 units) TRACT PROJECT NAME TPM TTM 90-04 90-05 Under Bldg. Permit DR 98-07/VAR 98-11 TPM 01-06 DR 05-05 Wal-Mart Creekside Plaza Stein Mart Plaza Poway Hyundai Hillside Village Apartments Solara Apartments Both commercial and residential assessments are proposed to remain unchanged from the Fiscal Year 2019-20 rates of $163.00 per benefit unit per year ($13.58 per benefit unit per month), and $75.31 per benefit unit per year ($6.28 per benefit unit per month), respectively. The rates of assessment are based on the required revenues divided by the number of benefit units within each Zone as outlined in the Fiscal Year 2020-21 Engineer's Report. A ballot for an assessment increase in Zone A failed in 1998. As a result, it was necessary to reduce service levels to ensure District expenses did not exceed projected revenue. Zone A service level was reduced to level C and may be subject to further adjustment during Fiscal Year 2020-21 depending on frequency and magnitude of unplanned events. The five-year budget and revenue projection indicate that it may be necessary to undertake a Proposition 218 ballot in Zone A to request an assessment increase to meet the District's service and capital requirements in future years. Total revenue in Zone B (assessments, the general fund contribution and interest) is anticipated to be insufficient to offset Zone B's projected expenses this fiscal year without u,se of district reserves. Service levels are to remain at level A because of a sufficient reserve fund balance. A Proposition 218 ballot passed in 1998 which allows for an annual San Diego Consumer Price Index (CPI) increase, if necessary. Since the reserve balance is healthy, application of the CPI increase this fiscal year is not required. The City Council's approved Fiscal Year 2020-21 Engineer's Report is on file in the Office of the City Clerk, 13325 Civic Center Drive and the Department of Public Works, 14467 Lake Poway Road, Poway, California. Environmental Review: This action is not subject to review under the California Environmental Quality Act (CEQA). Fiscal Impact: Revenue generated from LMD 86-3A assessments is $25,917.00, and an estimated amount of interest of $1,000.00. General Fund contributions are in the amount of $1,374.00. Revenue generated from LMD 86-3B assessments is $16,378.50, and an estimated amount of interest of $2,000.00. General Fund contributions are in the amount of $6,869.00 2 of 5
July 21, 2020, Item #8Public Notification: Pursuant to SB 1977, Section 50078.6, all public notification requirements have been met. No responses have been received regarding the proposed assessments at the time this report was written. Attachments: A. Resolution Reviewed/ Approved By: Wendy Kase~man Assistant City Manager 3 of 5 Reviewed By: Alan Fenstermacher City Attorney Approved By: City Manager
July 21, 2020, Item #8RESOLUTION NO. 20-A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF POWAY, CALIFORNIA, ESTABLISHING ASSESSMENTS FOR POWAY LANDSCAPE MAINTENANCE DISTRICT 86-3 TO BE COLLECTED ON THE SAN DIEGO COUNTY PROPERTY TAX ROLL FOR FISCAL YEAR 2020-21 WHEREAS, the City Council of the City of Poway desires to have Landscape Maintenance District assessments collected on the San Diego County Property Tax Roll; WHEREAS, on July 21, 2020, the City Council held a duly advertised public hearing to solicit comments from the public, both pro and con, relative to this application; WHEREAS pursuant to the provisions of City of Poway Resolution No. 00-034 (Policies for Landscape Maintenance Districts) and Assessment Law being the "Landscape and Lighting Act of 1972" (being Part 2 of Division 15 of the California Streets and Highways Code), applicable provisions of "Proposition 218" (being Article XIII C of the California Constitution), and provisions of the "Proposition 218 Omnibus Implementation Act" (being California Senate Bill 919), and in accordance with the Resolution of Intention, being City of Poway Resolution No. 20-042 adopted by the City Council of the City of Poway, County of San Diego, State of California, in connection with the proceedings for Landscape Maintenance District 86-3, the Assessment Engineer to the City of Poway has submitted an Engineer's Report for the District as required by California Streets and Highways Code, Section 22565; WHEREAS, on June 16, 2020, at a regular meeting of the Poway City Council, the amounts to be collected have been set forth in a public Engineer's Report; and WHEREAS, this action is authorized by the laws of the State of California. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Poway as follows: SECTION 1: The Assessment Rates for three (3) zones are as follows: Zone A: $163. 00 per benefit unit Zone B: $ 75.31 per benefit unit SECTION 2: The sum of assessments to be collected on the Fiscal Year 2020-21 San Diego County Property Tax Roll to provide for the maintenance of landscape improvements within Zones A, B and C of Landscape Maintenance District 83-1 are as follows: Zone A: $25,917.00 Zone B: $16,378.50 SECTION 3: Under Assessment Law, the City of Poway's General Benefit Contribution has been calculated as $8,243.00. SECTION 4: The City Clerk shall cause this Resolution to be published in the Poway News Chieftain, a newspaper of general circulation in the City of Poway. 4 of 5 ATTACHMENT A
July 21, 2020, Item #8Resolution No. 20-Page 2 PASSED, ADOPTED AND APPROVED at a Regular Meeting of the City Council of the City of Poway, California on the 21st day of July, 2020 by the following vote, to wit: AYES: NOES: ABSENT: DISQUALIFIED: Steve Vaus, Mayor ATTEST: Carrie Gallagher, CMC, City Clerk 5 of 5