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Item 3.3 - Reso Est. Assessments for LMD 86-2 for Fiscal Year 2019-20DATE : TO: FROM: C ONTACT: SUBJECT : Summary: City of Poway COUNCIL AGENDA REPORT July 16, 2019 APPROVED □ APPROVED AS AMENDED □ (SEE MINUTES) DENIED □ REMOVED □ CONTINUED _____ _ RESOL UTION NO. Honorable Mayor and Members of the City Council Michael Obermiller, P.E., Director of Public Works /l?C) Eric Heidemann , Assistant Director of Public Wea ~ for Maintenance Operations 0v V:-, (858) 668-4705 or eheidemann@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 2019-20 At the City Council meeting on June 18, 2019, Council adopted Resolution No. 19-029 declaring the intention to levy and collect assessments within Landscape Maintenance District 86-2 and set the public hearing for July 16, 2019. Assessments are proposed to remain unchanged from the Fiscal Year 2018-19 rates . In Zone A , where a ballot to increase assessments failed, service level reductions were implemented during Fiscal Year 2009-10 to ensure District expenses did not exceed projected revenue. Zone A service level is being reduced to level C and may be subject to further adjustment during Fiscal Year 2019-20 depending on frequency and magnitude of unplanned events. Zone B balances and revenues are projected to be sufficient to maintain service level A. R e commende d A ctio n: It is recommended that the City Council adopt the attached Resolution establishing assessments for Poway Landscape Maintenance District 86-2 to be collected on the San Diego County Property Tax Roll for Fiscal Year 2019-20. Discussio n: Landscape Mainten ance District 86-2 was formed on May 20, 1986, to maintain landscape improvements installed in conjunction with new subdivisions within the boundaries of the District. Landscape Maintenance District 86-2, by Zone, includes the following developments: Zone A (110 residential parcels assessed) TRACT I PROJECT NAME TTM TTM TTM TPM TTM 1 of 5 4185R 87-12 89-03 97-15 89-05 Sunrise Ranch Silver R idge (aka Poway Villas) Eagle Pointe (aka La Paz Summ it) Paradise Development Southern Hills (aka Poway Summit Estates) July 16, 2019, Item #3.3 Zone B (residential developments) includes the following: TRACT PROJECT NAME TTM CUP 83-02 06-09 (M) Sycamore Creek Loma Cabrillo, LLC The Fiscal Year 2019-20 assessments for Zone A are proposed to remain at the Fiscal Year 2018-19 rates of $186.16 per benefit unit per year ($15.51 per benefit unit per month). Zone B assessments will increase to $308.84 per benefit unit per year ($25.74 per benefit unit per month) less than the maximum of $468.66. 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 2019-20 Engineer's Report. 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 is being reduced to level C and may be subject to further adjustment during Fiscal Year 2019-20 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 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 increasing the assessments by the San Diego Consumer Price Index. 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. The last time a CPI increase was applied was in Fiscal Year 2008-09. 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 2019-20 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: None. Fiscal Impact: Revenue generated from Landscape Maintenance District 86-2A assessments is $20,477.60, and interest of $320. General Fund contributions are in the amount of $3,356. Revenue generated from Landscape Maintenance District 86-2B assessments is $51,885.12, and interest of $1,300. General Fund contributions are in the amount of $3,013. Public 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. 2 of 5 July 16, 2019, Item #3.3 Attac hme nts: A. Resolut ion Establishing Assessments for Poway Landscape Maintenance District 86-2 to be Collected on the San Diego County Property Tax Roll for Fiscal Year 2019-20 Reviewed/Approved By: Assistant City Manager 3 of 5 Reviewed By: Alan Fenstermacher City Attorney Approved By: c~ C ity Manager July 16, 2019, Item #3.3 RESOLUTION NO. 19- 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 2019-20 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 16, 2019, 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. 19-029 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 18, 2019, 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 the two (2) zones are as follows: Zone A: Zone B: $ $ 186.16 per benefit unit 308.84 per benefit unit SECTION 2: The sum of assessments to be collected on the Fiscal Year 2019-20 San Diego County Property Tax Roll to provide for the maintenance of landscape improvements within Zones A and 8 of Landscape Maintenance District 86-2 are as follows: Zone A: Zone B: $ $ 20,477.60 51,885.12 SECTION 3: Under Assessment Law, the City of Poway's General Benefit Contribution has been calculated as $6,369. 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 16, 2019, Item #3.3 Resolution No. 19- Page 2 PASSED, ADOPTED AND APPROVED at a Regular Meeting of the City Council of the City of Poway, California on the 16th day of July, 2019 by the following vote, to wit: AYES: NOES: ABSENT: DISQUALIFIED: Steve Vaus, Mayor ATTEST: Faviola Medina, CMG, City Clerk 5 of 5 July 16, 2019, Item #3.3