Item 9 - Reso Estab. Assessments for LMD 86-1 to be Collected on the County Property Tax Roll for FY 21-22July 20, 2021, Item #9DATE: TO: FROM: CONTACT: SUBJECT: Summary: AGENDA REPORT CityofPoway July 20, 2021 Honorable Mayor and Members of the City Council Eric Heidemann, Director of Public Works ~ CITY COUNCIL Will Wiley, Assistant Director of Public Works for Maintenance OperationsA (858) 668-4705 or wwiley@poway.org Resolution Establishing Assessments for Poway Landscape Maintenance District 86-1 to be Collected on the San Diego County Property Tax Roll for Fiscal Year 2021-22 At the City Council meeting on June 15, 2021, the City Council adopted Resolution No. 21-035 declaring the intention to levy and collect assessments within Landscape Maintenance District (LMD) 86-1 and set the public hearing for July 20, 2021. The assessments for residential Zone A are proposed to remain unchanged from the Fiscal Year 2020-21 rates. Zone A service level will remain at level Band may be subject to adjustments depending on the frequency and magnitude of unplanned events. Within Zone A, the Green Valley Estates Homeowners Association currently has an agreement in place with the City to maintain the rights-of-way bordering the development along Lake Poway Road. Additionally, one non-residential parcel (which makes up Zone B with current service level A), also has an agreement in place with the City to maintain the landscape improvements along the corner of Espola Road and Twin Peaks Road. As such, these parcels will not be levied. Recommended Action: It is recommended that the City Council take public input, close the public hearing and adopt the Resolution. Discussion: LMD 86-1 was formed on June 12, 1986, to maintain landscape improvements installed in conjunction with new subdivisions within the boundaries of LMD 86-1. LMD 86-1, by Zone, includes the following developments: 1 of 6
July 20, 2021, Item #9LMD 86-1 Zone A includes the following residential developments: TRACT PROJECT NAME TTMs 4090R,4091R,4092R,4093R Bridlewood TTM 3545 Piedmont Park TTM 4158 Stone Canyon Ranch TTM 84-08 The Grove TTM 89-13 Old Coach Collection TTM 89-13R The Heritage, Phase I, Unit I TTM 89-13R The Heritage, Phase I, Unit Ill TTM 89-13R The Heritage, Phase I, Unit IV TTM 98-02 North Point TTM 99-03 Vision Homes MORA 98-71 Kennedy Family Trust MORA 01-38 Wells Trust MORA 05-59 Garczynski TTM 00-02 Malone TTM 02-01 BBA Partners PM 15384 (par 1, 2, 3 and 4) Custom Homes MAP 15725 Milpitas-Fleming Associates ROS 4063 Seaman Gregg TTM 86-01 Huntington Gate, I and II MORA 04-02 Sedehi/Fard TTM 87-05 Serenata TTM 88-15 Green Valley Estates (portion of Landscape Maintenance District maintained per agreement) LMD 86-1 Zone B (one parcel maintained by LOS Poway Chapel per agreement) TRACT PROJECT NAME TPM 90-06 LOS Poway Chapel In 2018, the City initiated proceedings to form a proposed landscape maintenance district (referred to as LMD 18-2) within the boundaries of the existing LMD 86-1. The proposed LMD 18-2, would have added properties that previously were not assessed and established different benefit zones, and increased the assessments currently imposed on properties in the existing LMD 86-1. The proposed LMD 18-2 was balloted for an increase in assessments with annual cost indexing based on the annual San Diego Consumer Price Index (CPI) not to exceed three (3) percent. The proposed LMD 18-2 had a majority protest for the increase and consequently failed to pass the ballot and was not formed. The Fiscal Year 2021-22 assessments for Zone A (residential), is proposed to remain at the Fiscal Year 2020-21 rate of $243.04 per benefit unit per year (approximately $20.25 per benefit unit per month). This rate of assessment is based on the required assessment revenues divided by the number of benefit units within LMD 86-1 Zone A outlined in the Fiscal Year 2021-22 Engineer's Report (pg. 10). Service level reductions were implemented in Zone A during Fiscal Year 2018-19 to ensure LMD 86-1 's expenses did not exceed projected revenue. Zone A is currently at level B and may be subject to further adjustments to align with assessment revenue and to accommodate unexpected repair needs that arise. Service level B consists of performing landscape maintenance services (e.g., irrigation 2 of6
July 20, 2021, Item #9inspection, removal of trash and debris, trimming of shrubs, fertilizing, mowing, edging, pruning, sweeping) for respective areas within LMD 86-1 on a bi-monthly basis. Notably, with Zone A, the Green Valley Estates Homeowners Association currently has an agreement in place with the City to maintain the rights-of-way bordering the development along Lake Poway Road. Therefore, an assessment will not be levied for these parcels. Zone B (non-residential) is comprised of a single property. The Church of Latter-Day Saints. The landscape improvements are being maintained by the parcel owners under the terms of an agreement with the City. Therefore, an assessment will not be levied for this zone. Following the City Council meeting on June 15, 2021, staff identified an error in Resolution No. 21-035 that incorrectly referenced LMD 86-1 's responsibility to maintain sound walls. In accordance with the approved Engineer's Report, walls and fences adjacent to private property are to be maintained by the adjacent property owners and not LMD 86-1. The reference to maintenance of sound walls was removed and the resolution included in the Notice of Public Hearing was corrected. The City Council's approved Fiscal Year 2021-22 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: The Fiscal Year 2021-22 LMD 86-1 Zone A assessment rate shall remain unchanged from the Fiscal Year 2020-21 rate of $243.04 per benefit unit. Revenue for LMD 86-1 Zone A is comprised of $231,860.16 from assessments, $3,140.00 in estimated interest earnings and $50,347.00 in General Fund contributions. These estimated revenues are currently sufficient to cover planned service levels. Service levels may be subject to adjustments depending on the frequency and magnitude of unplanned events. Public Notification: A Notice of Public Hearing was published in the Poway News Chieftain on Thursday, July 1, 2021. Pursuant to Government Section 53753, 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 3 of6
July 20, 2021, Item #9Reviewed/ Approved By: Assistant City Manager 4 of6 Reviewed By: Alan Fenstermacher City Attorney City Manager
July 20, 2021, Item #9RESOLUTION NO. 21-A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF POWAY, CALIFORNIA, ESTABLISHING ASSESSMENTS FOR POWAY LANDSCAPE MAINTENANCE DISTRICT 86-1 TO BE COLLECTED ON THE SAN DIEGO COUNTY PROPERTY TAX ROLL FOR FISCAL YEAR 2021-22 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 the 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. 21-035 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 86-1, the Assessment Engineer for the City of Poway has submitted an Engineer's Report for the District as required by California Street and Highways Code, Section 22565; WHEREAS, on June 15, 2021, 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 July 20, 2021, 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 Rate is as follows: Zone A: $243.04 per benefit unit SECTION 2: The sum of assessments to be collected on the Fiscal Year 2021-22 San Diego County Property Tax Roll to provide for the maintenance of landscape improvements within Zones A of Landscape Maintenance District 86-1 is as follows: Zone A: $231,860.16 SECTION 3: Under Assessment Law, the City of Poway's General Benefit Contribution has been calculated for Zone A as $50,347.00. 5 of 6 ATTACHMENT A
July 20, 2021, Item #9Resolution No. 21-Page 2 PASSED, ADOPTED AND APPROVED at a Regular Meeting of the City Council of the City of Poway, California on the 2oth day of July, 2021 by the following vote, to wit: AYES: NOES: ABSENT: DI SQUALi Fl ED: Steve Vaus, Mayor ATTEST: Deborah Harrington, Interim City Clerk 6 of6