Item 10 - Reso Est. Assessments for LMD 86-2 for Fiscal Year 2020-21August 4, 2020, Item #10DATE: TO: FROM: CONTACT: SUBJECT: Summary: AG EN DA REPORT City of Poway CITY COUNCIL August 4, 2020 Honorable Mayor and Members of the City Co~cil Eric Heidemann, Director of Public Works q ~ Will Wiley, Assistant Director of Public Works for Maintenance Operatio , (858) 668-4705 or wwiley@poway.org Resolution Establishing Assessments for Poway Landscape Maintenance District 86-2 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. 20-041 declaring the intention to levy and collect assessments within Landscape Maintenance District (LMD) 86-2 and set the public hearing for July 21, 2020; however, the item was continued to August 4, 2020. The Fiscal Year 2020-21, Zone A assessment rate shall remain unchanged from the Fiscal Year 2019-20 rate. Zone B balances and revenues are projected to be insufficient to maintain service level A. In order to maintain the current service level A, the Zone B assessment is proposed to be increased by the San Diego Consumer Price Index (CPI). Recommended Action: It is recommended that the City Council take public input, close the public hearing and adopt the Resolution. Discussion: LMD 86-2 was formed on May 20, 1986, to maintain landscape improvements installed in conjunction with new subdivisions within the boundaries of the District. LMD 86-2, by Zone, includes the following developments: Zone A (110 residential parcels assessed). TRACT PROJECT NAME TTM 4185R TTM 87-12 TTM 89-03 TPM 97-15 TTM 89-05 1 of 5 Sunrise Ranch Silver Ridge (aka Poway Villas) Eagle Pointe (aka La Paz Summit) Paradise Development Southern Hills (aka Summit Estates)
August 4, 2020, Item #10Zone B (residential developments) includes the following: TRACT PROJECT NAME TTM 83-02 CUP 06-09 (M) Sycamore Creek Loma Cabrillo, LLC The Fiscal Year 2020-21 assessments for Zone A are proposed to remain at the Fiscal Year 2019-20 rates of $186.16 per benefit unit per year ($15.51 per benefit unit per month). Zone B assessments will increase to $316.10 per benefit unit per year ($26.34 per benefit unit per month) less than the maximum of $479.67. 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 (pgs. 8-9). Ballot actions for assessment increases in Zone A failed in 1998 and 2009. As a result, it was necessary to reduce service levels 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. It should be noted that the five-year budget and revenue projection indicates that it may be necessary to undertake a Proposition 218 process in Zone A to request an assessment increase to meet the District's service and capital requirements in futureyears. 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 increasing the assessments by the San Diego Consumer Price Index (CPI). Proposition 218 balloting passed in 1998 that allowed for an annual CPI increase, if necessary. Service levels are to remain the same because of the ability to adjust assessments by the CPI. Zone B properties participated in a community-based landscape renovation project in Fiscal Years 2011-12 and 2015-16 due to the neighborhood's desire to utilize a portion of their reserve funds to reinvest in their subdivision entry signage, irrigation and landscaping. 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 86-2A assessments is $20,477.60, and an estimated amount of interest of $650.00. General Fund contributions are in the amount of $3,435.00. Revenue generated from LMD 86-28 assessments is $53,104.80, and an estimated amount of interest of $500.00. General Fund contributions are in the amount of $3,084.00. 2 of 5
August 4, 2020, Item #10Public Notification: A Notice of Public Hearing was published in the San Diego Union Tribune on Friday, July 24, 2020. Pursuant to SB 1977, Section 50078.6, all public notification requirements have been met. Correspondence has been received regarding the proposed assessments at the time this report was written. Attachments: A Resolution Reviewed/ Approved By: Assistant City Manager 3 of 5 Reviewed By: Alan Fenstermacher City Attorney Approved By: City Manager
August 4, 2020, Item #10RESOLUTION NO. 20-A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF POWAY, CALIFORNIA, ESTABLISHING ASSESSMENTS FOR POWAY LANDSCAPE MAINTENANCE DISTRICT 86-2 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 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. 20-041 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 86-2, 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; WHEREAS, on August 4, 2020, the City Council held a duly advertised public hearing to solicit comments from the public, both for and against, relative to this matter; 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 two (2) zones are as follows: Zone A: $186.16 per benefit unit Zone B: $316.10 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 and B of LMD 86-2 are as follows: Zone A: $20,477.60 Zone B: $53,104.80 SECTION 3: Under Assessment Law, the City of Poway's General Benefit Contribution has been calculated for Zone A as $3,435.00 and Zone Bas $3,084.00. 4 of 5 ATTACHMENT A
August 4, 2020, Item #10Resolution No. 20-Page 2 PASSED, ADOPTED AND APPROVED at a Regular Meeting of the City Council of the City of Poway, California on the 4th day of August, 2020 by the following vote, to wit: AYES: NOES: ABSENT: DISQUALIFIED: Steve Vaus, Mayor ATTEST: Carrie Gallagher CMC, Interim City Clerk 5 of 5