Item 11 - Reso Estab. Assessments for LMD 86-3 to be Collected on the County Property Tax Roll for FY 21-22July 20, 2021, Item #11DATE: TO: FROM: CONTACT: SUBJECT: Summary: AG EN DA REPORT City of Poway July 20, 2021 Honorable Mayor and Members of the City Cou~il Eric Heidemann, Director of Public Works ~ CITY COUNCIL Will Wiley, Assistant Director of Public Works for Maintenance Operations (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 2021-22 At the City Council meeting on June 15, 2021, the City Council adopted Resolution No. 21-037 declaring the intention to levy and collect assessments within Landscape Maintenance District (LMD) 86-3 and set the public hearing for July 20, 2021. Fiscal Year 2021-22 assessments for Zone A shall remain unchanged from the Fiscal Year 2020-21 rates. The Zone B assessment rate is proposed to increase from $75.31 to $76.44 per benefit unit. Zone A and Zone B will remain at level C and A, respectively, and may be subject to adjustments depending on the frequency and magnitude of unplanned events. Recommended Action: It is recommended that the City Council take public input, close the public hearing and 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 LMD 86-3. Each subdivision and/or development listed below was required to annex into LMD 86-3 as a condition of property development either through the final map process or by Council Resolution. LMD 86-3 Zone A is comprised of the residential parcels within the following developments: TRACT PROJECT NAME TM TTM TTM 1 of 5 3994 88-03 94-02 The Pond Sycamore Springs Poway Oaks
July 20, 2021, Item #11LMD 86-3 Zone B is comprised of the residential and commercial parcels (14 non-residential parcels and two multi-unit low income housing apartment parcels) within the following developments: TRACT PROJECT NAME TPM 90-04 Wal-Mart TTM 90-05 Creekside Plaza DR 02-18 Poway City Center DR 98-07 /VAR 98-11 Poway Hyundai TPM 01-06 Hillside Village Apartments DR 05-05 Solara Apartments The Fiscal Year 2021-22 assessments for Zone A are proposed to remain at the Fiscal Year 2020-21 rate of $163.00 per benefit unit per year (approximately $13.58 per month). Zone B assessments will increase from $75.31 per benefit unit per year to $76.44 per benefit unit per year (approximately $6.27 per month to $6.37 per month), less than the maximum of $131.64. The assessment rates are based on the required revenues divided by the number of benefit units within each zone as outlined in the Fiscal Year 2021-22 Engineer's Report (pgs. 10-11 ). A ballot for an assessment increase in Zone A failed in 1998. As a result, it was necessary to reduce service levels to ensure LMD 86-3 expenses did not exceed projected revenue. Consequently, Zone A service level was reduced to level C. Service levels for landscape maintenance services for Zone A will remain at level C and may be subject to further adjustment during Fiscal Year 2021-22, depending on frequency and magnitude of unplanned events. A service level C consists of performing landscape maintenance services (e.g., irrigation inspection, removal of trash and debris, trimming of shrubs, fertilizing, mowing, edging, pruning, sweeping) for respective areas within Zone A on a monthly basis. Total revenue in Zone B (assessments, the general fund contribution and interest) is anticipated to be insufficient to offset Zone B's projected expenses. A Proposition 218 ballot passed in 1998 allows for an annual San Diego Consumer Price Index (CPI) increase, if necessary. Because expenses are increasing, a CPI increase of 1.5 percent in assessments is requested at this time. No CPI increase was applied in Fiscal Year 2020-21. Service levels for landscape maintenance services will remain at service level A for Zone B. A service level A consists of performing landscape maintenance services (e.g., irrigation inspection, removal of trash and debris, trimming of shrubs, fertilizing, mowing, edging pruning, sweeping) for respective areas within Zone B on a weekly basis. 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 86-2 Zone A assessment rate shall remain unchanged from the Fiscal Year 2020-21 rate of $163.00 per benefit unit. Revenue for LMD 86-3 Zone A is comprised of $25,917.00 from assessments, $1,000.00 in estimated interest earnings and $1,397.00 in General Fund contributions. 2 of 5
July 20, 2021, Item #11The Fiscal Year 2021-22 LMD 86-3 Zone B assessment rate will increase from the Fiscal Year 2020-21 rate of $75.31 to $76.44 per benefit unit. Revenue for LMD 86-3 Zone B is comprised of $16,624.17 from assessments, $2,000.00 in estimated interest earnings and $6,984.00 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 Reviewed/ Approved By: Assistant City Manager 3 of s Reviewed By: Alan Fenstermacher City Attorney Ch is City Manager
July 20, 2021, Item #11RESOLUTION NO. 21-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 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. 21-037 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 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 Rates for two (2) zones are as follows: Zone A: Zone B: $163.00 per benefit unit $ 76.44 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 and B of Landscape Maintenance District 86-3 are as follows: Zone A: Zone B: $25,917.00 $16,624.17 SECTION 3: Under Assessment Law, the City of Poway's General Benefit Contribution has been calculated for Zone A as $1,397.00 and Zone Bas $6,984.00. 4 of 5 ATTACHMENT A
July 20, 2021, Item #11Resolution No. 21-Page 2 PASSED, ADOPTED AND APPROVED at a Regular Meeting of the City Council of the City of Poway, California on the 20th day of July, 2021 by the following vote, to wit: AYES: NOES: ABSENT: DISQUALIFIED: Steve Vaus, Mayor ATTEST: Deborah Harrington, Interim City Clerk 5 of 5