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Staff Report 5.A 10/17/2017
Agenda Item #5.A DATE: October 17, 2016 TO: Honorable Mayor and Members of the City Council through City Manager FROM: Dan St. John, F.ASCE — Director, Public Works & Utilities Ron DeNicola — Public Works Parks Manager SUBJECT: Public Hearing to Hear Testimony Regarding the Formation of a Landscape Assessment District for Avila Ranch Landscape Assessment District (LAD) and to Declare the Results of the Balloting, Ordering Improvements, and Confirming the Diagrams and Annual Assessment RECOMMENDATION It is recommended that the City Council open a Public Hearing to Hear Testimony Regarding the Formation of a Landscape Assessment District for Avila Ranch Landscape Assessment District (LAD) and to Declare the Results of the Balloting, Ordering Improvements, and Confirming the Diagrams and Annual Assessment. BACKGROUND The City of Petaluma required a Landscape & Lighting Assessment District be established for the Avila Ranch Subdivision to maintain the public or common landscaped areas within the subdivision. The Council took action on October 3, 2016 to form the Avila Ranch Subdivision Landscape and Lighting Assessment District; to give preliminary approval of the Engineer's Report for Avila Ranch Subdivision Landscape and Lighting Assessment District; and approve intention to order the levy and collection of assessments for Avila Ranch Subdivision Landscape and Lighting Assessment District. The subject public hearing and proposed Council action will cause the LAD to be formed and start the assessment process. As required by state law, the public hearing, the counting of ballots, and approval of the subject resolution will finalize the formation of the Avila Subdivision Landscape and Lighting Assessment District. DISCUSSION Under the condition of project approval, the City of Petaluma required a Landscape and Lighting Assessment District be established for the Avila Ranch Subdivision to maintain the public or common landscaped areas within the subdivision. The Avila Ranch Subdivision base annual assessment is proposed to be $600.90 per each of the 21 residential lots to satisfy the base year annual cost of $12,619 necessary to maintain street lighting, landscaping and irrigation systems in medians and common areas. The level of maintenance is consistent with existing Landscape Assessment District landscape maintenance specifications. The individual property owners will be responsible for the landscaping and street trees in front of their houses. The attached Engineer's Report contains a summary of the first year base cost and estimated annual assessments. The estimated base year cost of $12,619 includes the cost of landscaping, fence, and irrigation system maintenance, storm water treatment and detention system maintenance, utilities, direct supervision by city staff and miscellaneous improvements and repairs. A reserve contingency is included to build to a maximum of 50% of the annual landscape maintenance cost. Costs also include the County collection fee and annual city administration fee. The estimated annual base year assessments will be $600.90 per parcel. A base amount once approved cannot be raised more than the CPI without a vote from the property owners. However, this base amount can be lowered if estimated costs of any given year are lower than the base amount. As required by State law, ballots, ballot instructions, and public hearing notices have been sent out to the one property owner of all 21 lots 45 days prior to the public hearing. The resolution included with this staff report will declare the results of balloting tabulated in accordance with Article XIIID of the California Constitution and California government Code Section 53753, ordering improvements, and confirming the diagrams and annual assessments for the Avila Ranch subdivision pursuant to the Landscape Lighting Act of 1972. Staff is recommending that the resolution be approved and that the formation process begin. FINANCIAL IMPACTS City staff costs incurred in the formation of the LAD, including a review by the City Engineer and City Attorney is reimbursed through the development cost recovery process from the developer. Therefore, this action has no impact on the general fund budget. The LAD budget will be amended to include the new assessments once the Avila LAD is formed. ATTACHMENTS 1. Resolution Declaring the Results of Balloting Tabulated in Accordance with Article XIIID of the California Constitution and California Government Code Section 53753, Ordering Improvements and Confirming the Diagrams and Annual Assessments for the Avila Ranch Subdivision Pursuant to the Landscape and Lighting Act of 1972. 2. Engineer's Report 2 Attachment 1 A RESOLUTION DECLARING THE RESULTS OF BALOTTING TABULATED IN ACCORDANCE WITH ARTICLE XIIID OF THE CALIFORNIA CONSTITUTION AND CALIFORNIA GOVERNMENT CODE SECTION 53753, ORDERING IMPROVEMENTS AND CONFIRMING THE DIAGRAMS AND ANNUAL ASSESSMENTS FOR THE AVILA RANCH SUBDIVISION PURSUANT TO THE LANDSCAPE AND LIGHTING ACT OF 1972 FOR THE 2017 -2018 FISCAL YEAR WHEREAS, the Landscape and Lighting Act of 1972 ( "1972 Act "), codified in California Streets and Highways Code Section 22500 et seq., establishes procedures whereby local agencies whose annual taxes are carried on the county assessment roll and are collected by the county may fund the construction and maintenance of improvements by formation of assessment districts; r and WHEREAS, the general procedures for formation of an assessment district under the 1972 Act include: adoption of a resolution initiating proceedings, proposing formation of a district and ordering an engineer's report; approval of the engineer's report; adoption of a resolution of intention to form an assessment district, levy and collect assessments, and, if desired, issue bonds or notes; and following canvassing of balloting that has been noticed and conducted in accordance with California Government Code Section 53753, and a noticed public hearing on the assessment, adoption of a resolution ordering the improvements and formation of the district and confirming the diagram and assessment; 2 and WHEREAS, improvements that may be funded under the 1972 Act include: installation or construction of landscaping, ornamental structures, public lighting facilities, appurtenant structures or facilities, park or recreational improvements, acquisition of land or existing improvements for park, recreational or open space purposes, and acquisition or construction of community centers, auditoriums, halls or similar public facilities, for indoor presentation of performances and events, including public and private events; 3 and WHEREAS, by Resolution No. adopted October 3, 2016, the City Council of the City of Petaluma initiated proceedings for formation of the Avila Ranch Subdivision Landscape & Lighting Assessment District ( "District "), designated Curt Bates, City Engineer, as the Engineer of Record ( "Engineer ") for the proposed District, and ordered the Engineer to prepare and file a report pursuant to the 1972 Act; and WHEREAS, the Engineer prepared a report ( "Report") concerning the District, District improvements ( "Improvements ") and the proposed assessment ( "Assessment ") in accordance with the requirements of the 1972 Act, filed a copy of the Report with the City Cleric and submitted a copy of the Report to the City Council for consideration; and 1 Cal. St. & High. Code § §22500 - 22501 2 Cal. St. & High. Code § §23585 - 22587, 22594 3 Cal. St. & High. Code §22525 WHEREAS, at its regular meeting on October 3, 2016, the City Council of the City of Petaluma duly considered the Report and found that it complied with all applicable requirements of the 1972 Act and other applicable law, including the requirements that the Report refer to the assessment district by its designation, specify the fiscal year to which the report applies, and contain improvement plans and specifications, an estimate of the improvement costs, a diagram of the district, an assessment of the estimated costs of the improvements, and estimate of the principal amount of improvement bonds or notes to be issued, if any; and WHEREAS, by Resolution No. adopted October 3, 2016, the City Council of the City of Petaluma preliminarily approved the Report subject to pending proceedings, including balloting proceedings and noticed hearing proceedings concerning the District in accordance with California Constitution Article XIIID, California Government Code Section 53753 and the 1972 Act; and WHEREAS, by Resolution No. adopted October 3, 2016, the City Council of the City of Petaluma declared its intention to order the levy and collect assessments for the District and set a public hearing on the formation of the District and levy of the proposed assessment pursuant to the 1972 Act; and WHEREAS, California Government Code Section 53753 (which implements California Constitution Article XIIID, known as Proposition 218) requires that prior to levying a new or increased assessment local agencies must provide mailed notice, including balloting materials and instructions as specified in Section 53753, to each record owner of a parcel within the proposed assessment at least 45 days prior to a public hearing on the assessment; and WHEREAS, on August 24, 2016 City staff mailed notices and balloting materials and instructions to each record owner of a parcel within the District announcing that ballots would be canvassed and a hearing conducted on October 17, 2016 on the formation of the District and levy and collection of the Assessment for the 2017 — 2018 fiscal year, and, for each future year following establishment of the District, of the percentage increases specified in the U.S. Department of labor, Bureau of Labor Statistics, Consumer Prices Indexes, Pacific Cities and the U.S. City Average, San Francisco - Oakland -San Jose from February 1; and WHEREAS, the mailed notices included: the total amount of the proposed Assessment chargeable to the entire District, the amount chargeable to the record owner's parcel, the duration of the payments, the reason for the Assessment and the basis upon which the amount of the proposed Assessment was calculated, the date, time and location of a public hearing on the proposed Assessment, a summary of the procedures for the completion, return, and tabulation of the Assessment ballots, including a statement that the Assessment shall not be imposed if the ballots submitted in opposition to the assessment exceed the ballots submitted in favor of the Assessment, with ballots weighted according to the proportional financial obligation of the affected property, an assessment ballot, including the City's address for receipt of ballots, a place for the 11 person returning the ballot to indicate his or her name, reasonable identification of the parcel, and his or her support of opposition to the proposed Assessment;4 and WHEREAS, the 1972 Act requires one published notice at least 10 days before the public hearing on the Assessment; and WHEREAS, on September 1, 2016 City staff published notice in accordance with California Government Code Section 6061 of the public hearing on the Assessment; and WHEREAS, ballots mailed concerning the proposed Assessment were in a form that concealed their contents once sealed by the person submitting the ballot, and all assessment ballots were received at the address indicated on the ballot for tabulation; and WHEREAS, on October 17, 2106, at a regularly scheduled meeting at the time date and place stated in the mailed and the published notices, the City Council of the City Petaluma conducted a hearing on the proposed Assessment, permitted any interested person to present written or oral testimony, and considered all objections or protests to the proposed Assessment, including any objections to the Improvements, maintenance of the Improvements, the extent of the District, and /or any zones within the District, the District diagram, and the Engineer's cost estimate, and the City Council of Petaluma fully considered any such written or oral testimony concerning the proposed Assessment;5 and WHEREAS, ballots on the Assessment were permitted to be submitted, changed or withdrawn by the person who submitted the ballot until the conclusion of the public testimony at the hearing on the proposed Assessment, and ballots remained sealed until the City Clerk commenced tabulation of the ballots following the conclusion of public testimony;6 and WHEREAS, if there is a majority protest against the imposition of a new assessment or the extension or increase of an existing assessment, the assessment may not be imposed, extended, or increased;7 and WHEREAS, a majority protest exists if assessment ballots submitted and not withdrawn in opposition to the proposed assessment exceed the assessment ballots submitted, and not withdrawn, in favor of the assessment, weighting the assessment ballots by the amount of the proposed assessment to be imposed on the identified parcel for which each assessment ballot was submitted;8 and WHEREAS, following the conclusion of the public testimony on the proposed Assessment, the City Clerk tabulated ballots submitted and not withdrawn in 4 Cal. Gov't. Code §53753(b), (c) 5 Cal. Gov't. Code §53753(d) 6 Cal. Gov't. Code §53753(c), (e) 7 Cal. Gov't. Code §53753(e)(3) 8 Cal. Gov't. Code §53753(e)(2) support of the proposed Assessment, and ballots submitted and not withdrawn in opposition to the proposed Assessment; and WHEREAS, when weighted according to the amount of the proposed Assessment to be imposed upon the parcel for which each assessment ballot was submitted, the ballots submitted and not withdrawn in opposition to the proposed Assessment did not exceed the ballots submitted and not withdrawn in support of the proposed Assessment, and thus a majority protest does not exist concerning formation of the Assessment; and WHEREAS, if a majority protest has not been filed concerning a proposed assessment, the legislative body may adopt a resolution ordering the improvements and the formation of the assessment district and confirming the diagram and assessment either as originally proposed by the legislative body or as changed by it, and adoption of the resolution constitutes levy of an assessment for the first year referred to in the assessment;9 and Findings WHEREAS, the City Council of the City of Petaluma finds, based on substantial evidence in the whole record before the Council, as follows: 1. Formation of the proposed District and levy of the proposed Assessment is for the purpose of meeting operating expenses of maintaining the District and the Improvements in accordance with the 1972 Act, and /or for the purpose of obtaining funds for capital projects necessary to maintain services within existing service areas in accordance with Title 14, Section 15273, subsection (a)(4) of the California Environmental Quality Act ( "CEQA ") Guidelines. 2. Maintenance of the Improvements funded pursuant to the Assessment constitutes maintenance of existing landscaping in accordance with Title 14, Section 15301, subsection (h) of the CEQA Guidelines. 3. The Improvements constitute minor public alterations in the condition of land, water and /or vegetation that do not involve removal of healthy, mature scenic trees in the form of new gardening or landscaping in accordance with Title 14, Section 15304, subsection (b). NOW, THEREFORE, the City Council of the City of Petaluma does resolve as follows: 1. The above recitals are true and correct and hereby declared to be findings of the City Council of the City of Petaluma. 9 Cal. St. & High. Code §22594 me 2. Formation of the proposed District and levy of the proposed Assessment, the Improvements and maintenance of the Improvements are exempt from CEQA in accordance with Title 14, Section 15273, subsection (a)(4), Section 15301, subsection (h) and Section 15304, subsection (b) of the CEQA Guidelines. 3. All protests against the Improvements, the proposed District and annual Assessment proposed for Fiscal year 2017 -2018, including protests against maintenance of the Improvements, the extent of the District and /or any zones in the District, the District diagrams or the Engineer's estimate of the cost of the Improvements and/or their maintenance have been received and considered. 4. The District that will benefit from and be assessed for the Improvements and their construction and /or installation and maintenance is situated in the City of Petaluma, California and is more particularly described in the diagrams of the District contained in the Engineer's Report on file in the office of the City Clerk, The Engineer's Report is attached to and made a part of this resolution as Exhibit A. The diagram of the District indicates by a boundary line the extent of the territory included in the District and any zone within the District and the general location of the District. 5. The plans and specifications for the Improvements (both existing and proposed) within the District as contained in the Engineer's Report are adopted and approved. 6. The Engineer's estimate of the cost of the Improvements, and of constructing and /or installing and maintaining the Improvements as contained in the Engineer's Report is adopted and approved. 7. The public interest, convenience and necessity require and the City Council of the City of Petaluma hereby orders the Improvements to be made and /or installed and maintained as described in the Engineer's Report. 8. The public interest, convenience and necessity require and the City Council of the City of Petaluma hereby orders the formation of the District and the levy and collection of assessments, including the annual Assessment proposed for the 2017- 2018 fiscal year pursuant to the 1972 Act and other applicable law for the construction and /or installation and maintenance of the improvements as described in the Engineer's Report. 9. The diagram showing the exterior boundaries of the District and the boundaries of any zone within the District and the lines and dimensions of each lot or parcel of land within the District as such lot or parcel is shown on the County Assessor's map for the applicable fiscal year, each lot or parcel of land of which has been given a separate number on such diagram, as contained in the Engineer's Report, is approved and confirmed. 7 10. The Assessment of the total amount of the costs and expenses, including incidental expenses, concerning the Improvements fairly distributes such costs among all assessable lots or parcels of land within the District in proportion to the estimated benefits to be received by such lots or parcels from the Improvements and from the maintenance of the Improvements as contained in the Engineer's Report, and such Assessment is approved and confirmed. 11. The entire Engineer's Report concerning the District, the Improvements, related costs and the Assessment is adopted and approved. 12. The City Clerk is directed to file with the Auditor - Controller of Sonoma County the Assessment and any attachments and diagrams as confirmed by the City Council of the City of Petaluma along with a certificate of such confirmation to be attached to the Assessment. 13. The Sonoma County Auditor - Controller and the Sonoma County Tax Collector are directed pursuant to the 1972 Act to apply the Assessment filed with the Auditor - Controller as contained in the Engineer's Report on file with the City Clerk to the tax roll and the Sonoma County Tax Collector is directed in pursuant to the 1972 Act to collect the Assessment in the same manner as all other such assessments collected by the Sonoma County Tax Collector. ENGINEER'S REPORT AVILA RANCH SUBDIVISION LANDSCAPE ASSESSMENT DISTRICT CITY OF PETALUMA OCTOBER 3, 2016 Prepared under the direction of. Curt M. Bates, City Engineer Date Attachment 2 9 AVILA RANCH SUBDIVISION LANDSCAPE ASSESSMENT DISTRICT DESCRIPTION OF SERVICES Each of the 21 parcels included in the Avila Ranch LAD receive equal special benefit from all of the improvements and maintenance of the improvements. These include irrigated landscaped strips between curb and sidewalk throughout the subdivision as well as the common storm water treatment and detention system, and gateway landscaped entrance to the subdivision. These improvements do not provide any significant general public benefit because the development has limited public access and primarily serves the residents occupying the subdivision. Based on this, the assessment for each parcel does not exceed the reasonable cost of the proportional special benefit each parcel receives. Landscape maintenance services, including, but not limited to, care of landscape plants, replacement plantings, tree trimming as necessary, operation, maintenance and repair/ replacement of irrigation systems, mowing, vegetation removal, weed and other landscape pest control as necessary, periodic litter removal, vandalism repair, periodic mulch replenishment, the costs of water and electricity, all in a street public right of way; maintenance and cleaning of the underground storm water detention pipe and maintenance and cleaning of the storm water treatment areas; also maintenance, repair and replacement of fence in Parcels A,B,C,E & F. All maintenance service areas are situated within the Avila Ranch Subdivision in the City of Petaluma. All maintenance areas are shown on Exhibits A -1 & A -2. 10 AVILA RANCH SUBDIVISION LANDSCAPING ASSESSMENT DISTRICT MAINTENANCE COSTS FISCAL YEAR 2016 -2017 Supervision Landscape Maintenance Regular Maintenance Plant Replacement Bacicflow Inspection Water Electricity Storm Water Treatment & Detention System Inspection & Report Cleaning (Gutters) Maintenance (every 4 years) Replacement (Gutters) Fence Maintenance & Replacement $3,000.00 $200.00 $105.00 $2,000.00 $200.00 $540&0 $300.00 $600.00 $600.00 $840.00 2 4 0 l� 20 .00 11 AVILA RANCH SUBDIVISION LANDSCAPING ASSESSMENT DISTRICT FISCAL YEAR 2016 -2017 ESTIMATED ASSESSMENT DISTRICT ANNUAL COSTS Supervision $1,300 Landscape Maintenance $5,505 Regular Maintenance, Plant Replacement, Inspection, Water & Electricity Storm Water Treatment & Detention System $2,340 Inspection, Report, Cleaning, Maintenance & Replacement Fence Maintenance & Replacement $1,200 Reserve Contingency 10% $1,034 County Collection Fee (0.0085% x Total Annual Assessment $63 City Administration (.15 %) x Regular Maintenance $1,177 TOTAL BASE ANNUAL COSTS $12,619 Number of Parcels to be Assessed 21 12 Total Costs Per Parcel to be Assessed 600.90 Total annual assessment $12,619 AVILA RANCH SUBDIVISION LANDSCAPING ASSESSMENT DISTRICT FISCAL YEAR 2015 -2016 PROPERTY OWNERS LIST: Parcel Property Owner's Numbers Name & Address 1 -21 Ryder Homes of California, Inc. 1425 Treat Blvd. Walnut Creek, Ca 94597 13 �i IR w4o 5 * bz Z f U 0a Y pw V (� _`� d _O ° °`$ �. < y ! sWN v1 Rg $'" w' bW �� �// w =wivi O N ti gXb - - Cl Qsw..W p A vFZ '_ wU Z p w b 0. :boo. 9N O q V 0 5 Z . � $w 0M g p p 2914t� � w t go 1-4 2 co ov a o ;t;6x N 1i<$ om ,da y 3 Z V �zaaw °3v4 5 m� ;9,. dV tL Z Oy�zW p wsy `ii 8 °= S�HS� I LF. �F j W aa pFLtOOFz �.., azo iSN Np, 12rzi Wro Z o f it<. 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