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HomeMy WebLinkAboutStaff Report 4.B 05/07/2012 W a • 4 ni wItewv#4.3 . r �u • . 186$ . DATE: May 7, 2012 TO: Honorable Mayor.and Members of the City Council through City Manager 4 i FROM Dan St. John,,F.ASCE— Director, Public Works &Util' Ron DeNicola—Parks and BuildingsManager . SUBJECT: Resolution Accepting the Engineer'''s.Report for,the Assessment Update for the Sonoma Glen Landscape Assessment District,Authorizing an Assessment Ballot . Proceeding and Setting the'Time and Place-of a Public Hearing to Consider the Assessment Update for the Sonoma Glen Landscape Assessment District RECOMMENDATION It is_recommended;thatthe City Council adopt the attached Resolution Accepting the Engineer's Report-for.the Assessment.Update for the Sonoma Glen Landscape-Assessment.District, Authorizing an Assessment Ballot Proceeding and Setting the Time and Place of a Public Hearing to Consider the Assessment Update for the Sonoma Glen Landscape Assessment District.`The action is required to:increase Landscape Assessment.District ("LAD") property assessments to balance deficits-that currently exist in the Soma Glen LAD fiscal accounts. BACKGROUND The Sonoma'Glen LAD is comprised of 303 single family homes and 142 town homes, roughly ' bordered northeast of Sonoma Mountain Parkway by Burgundy Ct;,,Ely'Road, Nora Lane and . Valley View Rd. and southwest of Sonoma Mountain-Parkway by Maria Drive and Reisling Rd. (Please see map and description ofthe>LAD and maintenance areas in the attached Engineers Report, Attachment 2.) Features within the LAD generally include the greenbelt bordering Corona Creek between Maria,Drive and Stonehenge Way, irrigated curbside lawn strips; cul-de- sac islands'and other common landscape areas. . The LAD was formed in 1991 and the development expanded in'phases over the next two years. The current year annual landscape maintenance assessment is $50.60 for single family homes and $31.83 Tar town homes. There is a 2% automatic annual increase,to the assessment. These assessments support the maintenance of common area landscaping'.with the LAD. Over the past twentyyears landscape maintenance and water costs-for the common areas in the ' LAD have exceeded:revenues. The.beginning fiscal year balance was a cumulative total deficit of$76,076. From 2001 through200.7, per City Council resolution, the City's general fund Agenda'Review: City Attorney�,�_� __ Finance Director City Man age\=-t — 1 W� transferredmonies to several LADs whose accounts were in deficits. Sonoma Glen received. . $31,482 during that period. • The City has endeavored to stabilize the imbalance'by,performing maintenance on an as needed basis and through water conservation. However, the'end of fiscal year 2011/12 deficit of$76,076 has not been eliminated.and.must;new be addressed through an assessment increase. The•proposed action meets the Council's Annual Goaldn the Category of Financial Stability to "Improve and enhance a fiscal:stability and sustainability." DISCUSSION The California Constitution, Article X1IID.(Proposition 218)requires tlatproperty owners in the districts be given 45 days mailed notice of a hearing, and be,provided:a.ballot and balloting instructions if the proposed assessment will increase theaamount, formula, or range of assessments initially adopted,.The city is proposing an increase in the annual assessment in order to help balance the•fund'over the next several years. A new annual rate of$75.00 is proposed for single family homes and $49.00 for town homes!.Town home rates are set at 2/3 of the Single Family rate as established at the time of LAD'formation. This increase will eliminate_ the deficit and build modest°reserves;that can be used for future:improdements. Staff recommends•that Council accept the preliminary Engineer's Report Council (Attachment 2), which outlines the total amount;of the proposed adjustment and increased assessment chargeable to the entire LAD; the amount chargeable to the record owner's parcel; the reason for the updated assessment; and the'basis'upon which the amount ofthe,proposed updated • assessment was calculated. Ifthe.Council accepts the Engineer's Report, it may then (i) authorize the mail:election required by Proposition,218 (California Constitution art.XIIID, section 4(b)) and the.Streets and Highways Code for landscape and lighting:districts, and (ii) set a public hearing date for the balloting,to allow the required 45 days mailed notice. Staff recommends the public hearing be set for July 2, 2012. FINANCIAL IMPACTS The Landscape Assessment.District fund is a special revenue fund which does not impact the City General Fund. LAD costs for facilities,:and+operations and maintenance are paid from the LAD fund. The proposed adjustment is anticipated/to reduce the current LAD deficit by approximately'$15000 per year which will see the fund return to a small surplus by the end of FY 17-18. ATTACHMENTS 1. .Resolution 2. Engineers;Report 3. Election Notice 2 • Attachment 1 RESOLUTION ACCEPTING THE ENGINEER'S REPORT FORTHE ASSESSMENT UPDATE FOR THE SONOMA,GLEN LANDSCAPE,ASSESSMENT DISTRICT; AUTHORIZING AN ASSESSMENT'BALLOT-PROCEEDING AND SETTING THE TIME AND PLACE OF A PUBLIC HEARING TO CONSIDER THE ASSESSMENT UPDATE FOR THE SONOMA GLEN,LANDSCAPE ASSESSMENT DISTRICT WHEREAS, the Sonoma Glen Landscape Assessment District ("LAD") is managed by the City of Petaluma; and WHEREAS, the Sonoma LAD has not collected funds pursuant to the existing assessment sufficient to fund required maintenance and operations ofthe facilities for which the existing assessment was adopted;;and WHEREAS, an update tband.,increase in the Sonoma Glen LAD annual assessment is required to more adequately fundlthe facilities, maintenance and operations of the facilities which provide a special benefit, to parcels within the Sonoma,Glen LAD; and WHEREAS, City staff has filed with the City Clerk a preliminary Engineer's Report which describes (a) the improvements,and the annual cost'of maintenance.and servicing expense for said improvements:that provide a;special benefit to the.parcels in the LAD; (b) a diagram of the LAD showing exterior boUndaries and the boundaries of each lot within the LAD; (c) a description of the lots within the LAD by assessor's parcel number ("APN"); and(d) the amount and method of determining the proposed Updated assessment for=each lot or parcel. NOW, THEREFORE, BE IT RESOLVED that: I. The preliminary'Engineer's Report is hereby received, accepted, and filed. 2. Because the Engineer's.Report describes an increase in the existing assessment for the Sonoma Glen LAD,`the City Clerk or her designee is hereby instructed to conduct an assessment ballotproceeding according:to the requirements and provisions of Article XIIID of the California,Constitution and Sections 53750 et seq. of the California Government Code: 3. A public hearing regarding;the proposed assessment proceedings shall be held on Monday; July 2, 2012, at or>a$'er'7:00 p.m. irtihe CityCouncil chambers at 11 • English.Street, P.etaluma, California 94952. 4. The City Clerk or her designee is hereby instructed to.mail or cause to be mailed a notice of said public:hearing by first-class mail,postage prepaid, at least forty-five 3 • days before the.dateset forsaid public•hearing, to all persons within the Sonoma Glen LAD,owning real property•to`be!assessed, whose names and addresses appear on the-last equalized Sonoma.County Assessor's'taxroll prior to said date • of mailing. The notice shall contain the Engineer's Report which sets forth the total"amount ofthe;proposed'updated and increased assessment chargeable to the entire LAD; the amount chargeable:to the record owner's parcel; the duration of the payments;the reason for the updated,assessiinent;;and the basis upon which the amount.ofthe proposed updated assessment was calculated;the date, time, and location of the public hearing; and a summary, of the procedures:for the completion, returnyand•tabulation of assessment ballots, including a statement that the updated.assessmeritshall not be imposed if the.ballots submitted in opposition to the assessment exceed the ballot's submitted in favor of the assessment, with'ballots weighted according. to the proportional financial obligation of the':a'ffect'ed property. 5. The ballots for'and;against the proposed assessment update shall be counted at the conclusion of said public hearing, and the count maybe continued and completed, ifso'directed by the City Council at the public hearing, at a subsequent specified time and publicly accessible location. • 4 • Attachment 2 Engineers Report—Sonoma Glen Landscape Assessment;District Assessment Update and Increase- LAD 079100; The Sonoma Glen Landscape Assessment District was created in 1991.to provide landscape and maintenance services to the Sonoma Glen subdivision, and contains 303 single family home and 142 townhomes. Landscape improvements supported by the assessment generally include the greenbelt bordering Corona Creek between Maria Dnve and Stonehenge Way, irrigated curbside lawn strips, cul-de- sac islands and other common landscape areas. The assessment update would'increase the annual assessment to a maximum of$75.00 for single family homes and $49.00 for townhomes, to cover the capital costs and expenses specified in this report. The annual assessment update would include an annual 2%increase to cover increased costs of supplies and services. The existing assessment for the fiscal year 2011-2012 is $50:60 for single family homes and$31,83 fortownhomes, with a 2% annual adjustment. The current assessment is not enough to cover annual costs of the improvements, supplies and services, and has resulted in an existing deficit in the assessment fund of$79,478. Theenew assessment would gradually reduce this deficit and provide a;reasonable working reserve,overea period of 5 to 10 years: The total annual assessment for the Fiscal Year 2012-2013 would be`$29,683, compared to the exi sting:$19,737. Following'submittal of this Reportto'the City Council for preliminary approval,the City Council may call for an,assessment ballot proceeding and notice and conduct a public hearing on the proposed establishment of the,assessment update, pursuant to state law,and the requirements of Proposition 218 (California Constitution, articles XIIIC and XIIID): If in the election, the ballots submitted in favor of the assessment update, weighted by the proportional financial obligation of each property for which ballots,are submitted) exceed the ballots submitted against the assessment update, the Council may take action to levy the updated assessment, which would be included in the 2012-2013 taxbills, or as noticed in the ballot measure. 5 • ENGINEERS REPORT CITY OF PETAL UMA LANDSCAPE ASSESSMENT DISTRICTS EXPEDITURES& REVENUES SONOMA GLEN' QRpfLSS/av LAD079100 4,, Q��a1A.g�T�FG �' 62678' m FY11-12 FY12-13 cc yaw i, bd EST ACT BUDGET 06%301 a FY10-I1 Actual Ending Balance sj Ct1/It (76,076) (79,478) OF CAL1C' EXPENDITURES 511I0 SALARY&sBENEFITS 539 539 53020 SUPPLIES 54140 PROFESSIONAL SVCS '• 0 54310 OTHER OPERATING SVCS 105 105 56210 ELECTRICITY 870 870 56240 WATER 18,000 9,000 54260 ANNUAL MINT CONTRACT ..2;156 2,156 56250 WEED ABATEMENT 0 TOTAL EST.EXPEDITURES' ; `;21,670 12,670 OTHER COSTS 54210 REPAIRS:&EXTRAS 850 1,000. 54350 COUNTY'ADMIN. FEES 168 252 53020 SUPPLIES 0 55010-55030 CITY ADMEN COST CITY'ADMIN FEE 451 323 FORMATION AND OTHER COSTS 0 REFUNDS EST OTHER COSTS' 1,469 1,576 TOTAL EST. EXPENDITURES 23,139' 14,246 ANNUAL ASSESSMENTS- 19,737 29,683 !INTEREST REVENUE 0 0 DISTRICT#21 TRANSFER 0, PROJECT INTERFUND TRANSFER TOTAL ESTIMATED;SOURCES; . 19,737 29,683 NUMBER,OFFPARCELS-SINGLE,FAMILY 303 303 NUMBER OF=PARCELS-TOWNHOME 142 142 ANNUAL PARCEL ASSESSMENT-SINGLE FAMILY '50.60 75.00 ANNUAL PARCEL ASSESSMENT-TOWNHOME 31. 49.00 TOTAL'EST.RESERVES.AT END_OF FY. (79,478) (64,040) NOTE: There;is:an;automatic annual.2% increase in assessment. 6 e • 5 a�4 .. o� I -i_— _J!ffiuIT - Ty I,ins NORA' 'NORA 1' '` S lila . , i'N ,NM ra g L. gm mompi hig I li i I_wsw•mocals'IN :It i, LAIN MIL FL �s.�.�..._o ad, \ well.-d tip_ \ Tv.Wiliiiiiittm "la - • 4 tA .,„ Ls', k ta Milmatela Fill IAI TIM '34 . , 4 Z CORONA — —. pm IIIIIIIII ,A 44 -ll > Laialltt&V 1011 01111,11110015 NI 'I all .?$: i � � 1 1 C i , um N. lket, # ` o1 ;A �: .• till Ell 1411 Haat INNS ®ram .E �, . r o Ltd/ tj C us i tan ��,,,,.,� . ., r phi X111 p. •0 4 ARBERRY D•, 6`.' %° "fe8�i'1`J i� },`� ®►t�i`���� ,7r i ®i .0 Z ` ^4 . , g cal OE r\ ) .ina s al Tit *mg iirmIgras.®® ' , � �ZL ono: AbtIJ T� d S • tan OAK -- ` IWaa� ®(t - _��®��If��M1llr ___ :1:1f - 7 1®Y®1„abmmmm..w Mnra,,ta • i 7 • • Sonoma Glen LAD Parcels by APN numbers 137300023, 137270012' 137222032, 137221 014 137221041 137222008 137222013 137350028 137310076 137300032' 137221013' 1372700081137260008 137221036 137222009 137270039 137270049 137310035' 137300024 137260015 137260021 137270061 137221035 137270027' 137270015' 137222021 137300084 137300025' 137222027 137270059. 137222038 137221042 /37221023 137350033 137222040 137310013 • 137300026 137222036 137061030 137300031 137300077 137350012 137221017 137260013 137310048 1373000651137260007' 137210031 /37300054 /37221034 137270026 137222017' 137270065' 137310059' 137300066' 1372700534137221007 137300027 137300085 /37221067 137350039. 137270064 137310050 137210021 137350023 137260018 137300033 137300078 137221064, 137061013', 137260009 137310077 137210044. 1372700521137260003. 1 37300064 137221033 137270025 137222003 137350020 137310074 137210025` 137270050'137221006, 137300055 137221032 137222012 137350016 137222022 137300008 137210046 137221012 137270007 137300018 137221058 137221022 137270040 137270014 137310012 137210047 137270011 137270056 137300060 137221031 137170014 137350032 137222039 137310079 I 137210036 137222028 137210029 137300037 137221030 137221066 137222018 137270063 137310060 137210019 137270051 137260019 137300029 137350009 137270023 137270041 137260014 137310049 137210010 137270061 137260020 137300051 137350042 137222011 137260012 137300016 137300007 137210017 137270066137270057` 137300019 137221061 137270022 137350040 137300049 137300006 137210011 137270034 137221005 /37300061 137300082 137221021 137350017 137300059 137310078 137210009 137260016 137270006 137300030 137221043 137350013 137222002 137300017 137310061 137210008 137222029 137221004 137300036 137350008 137221065' 137270042 137300038, 137310011 137210012137350024 137270058 137300052 137350007' 137270021 137222025 137300050 137310073 137210007' 137260006 137260002 137300020 137350006 137222010; 137270037 137300083, 137300005 137210016 137350025 137210032 137300028 137221057 137222006 137260011 137310016 137310010 137210013 137222035 137270005 137300062 137221060 137221020 137350031 137310039 137310062 137210005 137270054 137221003 137300035 137350005 137270020 137270043 137310045 137300004 137210006 137221011 137210028 137300021 137221044 137350034 137222001 137310033 137310072 137210004 137350026` 137221002 137300053 137350004 137270019 137350041 137310053 137310009 137210014 137350027` 137221001 137300034 137221059 137350035' 137222019 137310056 137310063 137210015 137222030 137270004, 337300022 137350003 137221019 137222024 137310038 137310071 137210003 137270010 137260001 137300063 137350002 137350014 137221016 137310034 137300003 137210002 137260023 137210027 .137300067 137350010 /37350036 137222043 137310015 137300009 137210055 137221010' 137270003 137300068 137350001 137270018 137270044 137310046 137310070 137210054 137260005 137210033 137300069 137221045 137350037 137222023: 137310017 137310008 137210053 137222034 137270002 137300070 137221056 137222005 137270045 137310044 137310064. 137210018 137222031 137210026 137300071 137270032 137221051 137356018 137310080 137300044 137210050 137270033 137210048 137300080 137221026 137270017 137222042 137310054 137300002 137210020 137260022 137210034 137300072 137270031 137222015 137270046' 137310032` 137300010 137210022 137221009 137230046 137300073 137350011 137221050, 137260010 137310081 137310007 137210052 137260017 137270001 137300074 137270030 137222004 137270047 137310057 137310065 137210042 137270067 137210035 137222045 137221062 137221018 137350030 137310052 137300001, 137210041 137270009 137210049 137300075 137221025 •137350038. 137222020 137310037 137310069 137210043 137222033 137210024 137300079 137221055 137270016 137221015 137310075 137300011 x 137270035 137260004 137210045 137221038 137270029 137221049' 137350029, 137310014 137300043 137270013 /37210030 137210037 337221039,137221063 137222014 137222041 137310036 137310006 137222026 137221008 137210023 137221037 137221024 137270038, 137270048' 137310047 137310066 137222037 137270055 137210051 137221040 137222007 137350015 137350019 137310058 137310068 137350022 137270060 137350021 137300076 137270028 137222016 137270036 137310051 137300045 8 137310005 137300042 137300012 137310067 137310004 137300046 137300056 137300041 137300013 137310003 /37300047 137300057 137300014 137300040 137310002 137310001 137300048 137300015 137300058 137300039 137310026 137310027 • ' 137310021 • 137310028 • 137310020 • 137310041 ' 137310029 137310019 • 137061005 137310040 137310042 • 137310018 137310030 137310043 • 137310055 137310031-. 137061001 137061002 137061003 137310083 137310024 137310023 137310025 137061004 137310022. 9 • Attachment 3 City of:Petaluma NOTICE;OF PROPERTY ASSESSMENT' UPDATE AND PUBLIC HEARING SONOMA GLEN LANDSCAPE MAINTENANCE DISTRICT (Pursuant to the Landscaping'and Lighting Act of 1972) May , 2012 The purpose of this.notice-is'to provide you with information regarding an assessment update ballot proceeding being'conducted,by the City of Petaluma for property owners in the Sonoma Glen Landscape Maintenance District ("LAD"), and the effect of the proposed assessment update on the property you own in the,LAD: This notice is being,sentto you in accordance with City of Petaluma City Council Resolution No. 201-2- , California Government Code section 53753(b) and the.California Constitution, art. XIIID, section 4(c) and (d). PLEASE BE ADVISED,OF THE FOLLOWING: A public hearing will be,held:at or after 7:00 p.m. on Monday, July 2, 2012, in the City Council Chambers, Petaluma,City Hall; 11 English.Street, Petaluma, CA 94852 to consider an assessment update for the real properties in the'Sonoma Glen LAD. • The City of Petaluma,is proposing that an assessment on property you own within the Sonoma Glen LAD, currently set-at $50.60 annually for single"family homes and $31.83 annually for townhomes, be increased•to a maximum of$75.00 per year for single family homes and $49.00 per year for townhomes plus a 2% annual increase for costs of supplies and services. The•present'assessment is subject to the same.2% annual increase factor, and is collected with your property tax bill each year. • The Sonoma Glen LAD was formed in 1991 -and contains 303 single family homes and 142 townhomes. A map-and description of the LAD and maintenance areas served by the LAD is enclosed as part of the Engineer's Report•included in this NOTICE packet for your review and consideration. • The Sonoma Glen LAD was formed.to install facilities and to maintain public landscape improvements that benefit the properties within the Sonoma Glen LAD. These include the greenbelt bordering,Corona-Creek between Maria-Drive and Stonehenge Way, irrigated curbside lawn strips, cul-de-sac islands and other'comnion landscape areas. • Since its formation, theSonoma Glen LAD maintenance and water/sewer costs have • exceeded revenues fronithe current assessment,xesulting in a deficit of approximately $75;000. The'City'proposes an increase in the assessment whichwould gradually reduce the-annual operating deficit to-balance the fund over a.period of approximately five years and then to build a modest reserve for"future improvements. The revenue and expense projections which support this increase, and the full amount of the proposed updated assessment are contained in the Engineer's Report. 10 • The amount-of theupdated,assessment does;not exceed the-reasonable costofproviding;a • proportional,specials benefit toithe properties.innthe Sonoma,Glen LAD—namely, the facilities for and the maintenance ofjpublic landscape that benefit„the properties within the Sonoma Glen LAD.. 'Theassessment-is calculated'differently for single:family home and townhomes, based on the difference in special benefit provided to single family homes and townhomes. The proportionate cost:is based on approximate size of the units and the proportionate availability and use of LAD services by residents of single family homes and residents of townhomes. • The total proposed cost for each property you own(listedon,your Assessment Ballot) for the fiscal year 2012-2013 is $75.00 for singlefamily homes and $49.00 for townhomes. The total proposed assessment-for the entire Sonoma-Glen LAD for fiscal year 2012- 2013 is $29,683. • The assessment update includes an annual 2% iiidtease as!needed.,to account for the effects of inflation and/or increased costs ofgoods'andservices. Enclosed with this NOTICE you will find;an ASSESSMENT UPDATE BALLOT. Please follow the directions on the ballot to vote on the proposed assessment update. You may mail your ballot to the City Clerk,or deliver it to the City at any time up to the conclusion of the public hearing on July 2, 2012. Thetiallots-will be counted in public at the close of the public hearing, or such subsequent'time as directed by the City Council atthe public hearing. You may mail or deliver only our own ballot to the City Clerk,at the address on the ballot. Ballots',may be sent at any time, but must be received by the City no:later than the conclusion of • the public hearing to be held on July'2, 2012 at:7:00,pin in the City'Council chambers. At any time prior to the conclusion of public hearing, you may withdraw your ballot or submit a changed ballot in place of one previous'lysubmitted. Only ballots with original signatures will be accepted, and all ballots must be signed. All ballots will become public record, subjectto inspection upon request. At the public hearing, City staff will`present infonnation,to the City Council and the public about the assessment. The'public'will have opportunity to speak on the issue. The City Council will-then;direct,the Clerk to open and.count the votes, and may continue the count to such public time and place as determined:by the City Council: Results of the vote count will be considered after tabulation. If majority protest is received, defined as'more'"NO" votes than "YES” votes, weighted by proportion of the overall financial burden, the assessment update will notb'e imposed, and.the existing assessment will continue to be collected. • • 11