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HomeMy WebLinkAbout6.1 MAD 86-1 LevyAssessCITY CLERK FILE # 360-20 AGENDA STATEMENT CITY COUNCIL MEETING DATE: August 7, 2001 SUBJECT: Public Hearing: Landscaping and Lighting District No. 86-1 (Villages at Willow Creek) Report Prepared by: Lee S. Thompson, Public Works Director EXHIBITS ATTACHED: 1) 2) 3) RECOMMENDATION: 1) 2) 3) ~ 4) 5) Resolution approving engineer's report, confirming diagram and assessment, and ordering levy of assessment at proposed new rate (total of $85,111.96) Resolution approving engineer's report, confirming diagram and assessment, and ordering levy of assessment at 2000-01 rate. (total of $55,195.00) Engineer's Report Open public hearing Receive Staff report and public comment Question Staff and the public Close public hearing and continue item until ballots have been tabulated Once tabulation of ballots has been completed, City Clerk will announce the results: b) If ballot results are 51% or more for "yes," adopt resolution (1) approving engineer's report,, confirming diagram and assessment, and ordering levy of assessment at the proposed new rate. If ballot results are 51% or more for "no," adopt resolution (2) approving engineer's report, confirming diagram and assessment, and ordering levy of assessment at the 2000-01 rate and provide direction by choosing one of the following options: 1. Reduce level of service to match the anticipated revenue. 2. Continue maintenance at the budgeted level of service, using reserve funds to make up the difference. 3. Cut back level of service to some designated percentage, and match level of service with a portion of reserve. Staffwould propose to return to the 2000-01 level of service through the voting process again next year. g:\assessdist\86-1 \agsthrng COPIES TO: ITEM NO. FINANCIAL STATEMENT: 2001-2002 Sources and Use of Landscape Maintenance District Funds (Based on Passage of Proposed Assessment) Revenues: Total Proposed Assessments Levied: Estimated Interest on Reserves: Estimated Prior Year Collections and Penalties Less Estimated Collection Cost and Delinquency Net Total Revenues: $85,111.96 $ 2,086.00 $ 329.00 $(2,298.00) $85,228.96 Expenditures: Contract Landscape Maintenance: Utilities: Administration and Engineering Reports: Total Operating Expenses: $52,13L O0 $29,910.00 $ 3,279.00 $85,32O. OO As shown above, $85,11L96 is proposed to be assessed to property owners for the 2001-02 street landscaping maintenance costs. The amount proposed to be assessed to property, owners ($130.64 per single fami .ly home and $65.32 per multi-family dwelling) represents a 54% increase over the assessment amount levied during 2000-01. DESCRIPTION: This maintenance assessment district was formed in 1986 as part of the review and approval of the Villages at Willow Creek development. This assessment district funds the maintenance of landscaping, including fencing and soundwalls, along the west side of Do ugherty Road from Amador Valley Boulevard to the northerly City Limit, along Amador Valley Boulevard from Dougherty Road to Wildwood Road, along Wildwood Road and Fall Creek Road, and certain landscaped areas within the Ridgecreek single-family home development. Landscaping within the condominium and apartment developments is the responsibility of the property owner or homeowners' association for those individual developments. The landscaping along and within the Alamo Creek channel area is not included in the assessment district as it is the responsibility of Alameda County Flood Control, Zone 7. Proposed Increase in Assessment At the City Council meeting of June 19, 2001, the City Council approved the Preliminary Engineer's Report (Attachment 3) for Fiscal Year 2001-02, which includes a proposed rate increase. The proposed rate is $130.64 per single-family home and $65.32 per multi-family dwelling unit. This is an increase of 54% over the prior year's assessment. The Engineer's Report also includes an escalation clause that would allow increases in future years based on the Consumer Price Index rate of increase and actual increases in utility costs. Similar clauses were included in two of the newer Districts, the Santa Rita Landscape Maintenance District and the Dublin Ranch Street Light Maintenance District. When this assessment district was originally formed in 1986, the assessment was set at $120 per single family lot and $60 per multi-family lot based on an engineering estimate of maintenance cost for planned Page 2 landscaping improvements. A substantial reserve built up over the next several years, as some of the anticipated improvements were not accepted for maintenance. Under the Landscaping and Lighting Act of 1972, the allowable reserve for an assessment district is about half the annual maintenance cost, and in 1991-92, the assessment was reduced to $78.48 per single family lot and $39.24 per multi-family lot in order to utilize some of the reserve. Slight increases occurred in 1992-93 and 1993-94, but the assessment has not been increased above $84.72 per single family lot and $42.36 per multi-family lot since that time. The total assessment mount since 1993-94 has been $55,195. The estimated cost of maintenance for 1993-94 was $69,620 and has increased about 19% over seven years to the 2001-02 estimate of $82,820. Without an increase in.assessment, the cash balance for this District would be expected to drop to $13,000 or less by the end of 2001-02. In the past, reserves have been used to defray the cost of unexpected expenses such as major irrigation repairs or plant replacements following a drought or freeze. Staff is concerned that, should such an event occur, there would be insufficient funds to effect a repair. If the assessment is not raised at this time, the Assessment District will experience a significant deficit in Fiscal Year 2002-2003, which will increase in subsequent years. This will result in a significant reduction in the levels of maintenance in Fiscal Year 2002-03 and beyond. Notification and Informational Meetings To comply with Proposition 218, notices and ballots were mailed to property owners on June 22, 2001, which is 46 days prior to the scheduled public hearing on August 7th. Along with the required notice, Staff also included a newsletter which explained the history of the District and the need for an increase in more detail and invited property owners to an informational meeting on July 9t~' No property owners attended the July 9th meeting. At the first public hearing, which was held on July 17th, a property owner indicated dissatisfaction with the maintenance activities, questioned the cost of the activities taking place, and also felt that the notice given for the informational meeting was inadequate. The City Council directed Staffto provide a response to the questions and schedule another informational meeting. The second informational meeting was held on Monday, July 30th. Thirteen property owners, representing ten property addresses out of the 1,150 housing units in the development, attended the meeting. The questions raised and subjects discussed at the informational meeting were as follows: Condition of landscaping: The property owners are concerned that the existing landscaping is deficient. There are bare spots where ground cover and shrubs have died and not been replaced, and some of the plants have gotten older and woody or have a disease called "scale.' Staff explained that since funds in the assessment district are limited, some activities do not take place with the same frequency that might occur in other areas which are funded differently. Some of the landscape plants from the original subdivision installation are not compatible from a water need standpoint, and some are at the end of their life span and need to be replaced. Staff proposed that some priorities be established for replacement and presented some potential designs for high visibility areas. However, other maintenance activities would have to be cut back in order to fund the proposed new planting. Accountability of Maintenance Contractor: Some property oWners expressed concern that the maintenance contract is not competitively bid and that there does not appear to be a written specification with respect to appearance of landscaping or frequency of activities. Page 3 Staff explained that the City contracts with MCE Corporation for street, park, and building maintenance activities, not just landscape maintenance. A percentage of the landscape activities are competitively bid by MCE Corporation; these are items that can be measure'd and specified such as mowing, fertilization, and weed control. MCE's performance is reviewed by City Staff, and the frequencies for maintenance activities are established during the budget process. MCE issues a report with each monthly invoice that includes all of the activities, by number of hours and dollars, that have occurred during that month. It was again emphasized that the limited budget in the assessment district affects some of the frequencies. Size of Proposed Increase: Some property owners questioned why the rate was not increased gradually over several years rather than all at once. Staff explained that under the regulations established by Proposition 218, it is difficult to raise an assessment, and the process is lengthy and somewhat expensive. In addition, until recently the reserve has exceeded the amount allowed by law and needed to be reduced. Community_ Involvement: Some of the property owners expressed an interest in working with Staff to prioritize areas and generate ideas for improvement. The property owners will meet and come to a consensus as to priorities and ideas for improvement and let Staff know. Staffis willing to meet with the property owners periodically to discuss needs and desires and will d° so also as part of the budget process for next year. The southwest comer of Dougherty Road and Willow Creek is a part °fthe park frontage and will be relandscaped as part of the park maintenance budget. Ballot Procedure Proposition 218 requires that the ballots received from property owners be opened and tabulated at the City Council meeting, and that the results be made available in written form. A total of about 180 ballots had been received at the time this report was written. In order to avoid delaying the meeting, Staff recommends that the public hearing be conducted early in the agenda. The procedure would be as outlined in the "Recommendation" above: Open public heating Receive Staff presentation and public comment Question Staff and the public Close public hearing and continue the decision until the ballots have been tabulated Ballots can be submitted any time until the close of the public hearing. Anyone wishing to change his or her vote must do so prior to the close of the public hearing. Staff will have replacement ballots available at the meeting. It is proposed that Staffmembers would take the ballots into the Regional Meeting Room for tabulation so that the meeting can continue without disruption. Any members of the public interested in obs, erving tabulation of ballots may do so. Each vote is weighted according to the amount of the assessment; in other words, the votes from single-family property owners would have a value of $130.64, the votes from multi- family property owners would have a value of $65.32, and the vote from the commercial comer property would have a value of $522.56. There are four apartment complexes in the development which would have a value of $65.32 times the number of units in the complex. Page 4 After the ballots are tabulated, the CityClerk will announce the results. At that time, the City Council may adopt the appropriate resolution as indicated in the Recommendation. If 51% or more of the ballots received (based on relative values) are "yes," the City Council should adopt Resolution Attachment 1 approving the levy of assessment at the proposed new rates. If 51% or more of the ballots received (based on relative values) are "no," the City Council should adopt Resolution Attachment 2 which approves the levy of assessments at the 2000-01 rates. If the majority vote is "no," the maintenance activities in the District would be curtailed to fit within funds available. Staff recommends that the City Council conduct a public hearing and table the item until ballots can be tabulated and the results announced. Based on the result of the vote, the City Council should adopt EITHER Resolution Attachment 1 approving the levy of assessment with increase OR Resolution Attachment 2 approving the levy of assessment at the 2000-01 rate. If the decision of the voters is to deny the increase, Staff requests direction from the City Council regarding level of service as noted in the Recommendation~ Page 5 RESOLUTION NO. - 2001 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DUBLIN DECLARING THE RESULTS OF AN ASSESSMENT BALLOT PROCEEDING AND APPROVING CERTAIN ACTIONS WHEREAS, the City Council of the City of Dublin called and duly held an assessment ballot proceeding for Landscape and Lighting District No. 86-1 (hereafter referred to as the "District"), pursuant to Resolution No. 99-01 for the purpose of Presenting to the qualified property owners within the District a proposition for the increase in the assessments and an assessment range formula to allow for reasonable increases; and, WHEREAS, The landowners of record within the District as of the close of the Public Hearing held on August.7, 2001 consented to the increase in the assessments and the assessment range formula to allow for reasonable increases; NOW, THEREFORE BE IT RESOLVED, DETERMINED, AND ORDERED BY THE CITY COUNCIL FOR THE DISTRICT, AS FOLLOWS: Section 1 The above recitals are tree and correct. Section 2 The canvass of the votes cast in the District at the assessment ballot proceeding held in the District on August 7, 2001, is hereby apprOved and confirmed. Section 3 The proposition, presemed to qualified property owners of the District for receipt by the City Clerk on August 7, 2001, each has received a vote, weighted according to the proportional financial obligation of the affected property. Of the qualified property owners voting at said assessment ballot proceeding, the proposition has carried. The City Council is hereby authorized to take the necessary steps to levy the assessment as authorized by the proposition. Section 4 The City Clerk is hereby directed to enter this Resolution on the minutes of the City Council, which shall constitute the official declaration of the result of such assessment ballot proceeding. Section 5 This Resolution shall become effective immediately upon its adoption. Section 6 The City Clerk shall certify the adoption of this Resolution~ PASSED, APPROVED AND ADOPTED this 7th day of August, 2001. AYES: NOES: ABSENT: ABSTAIN: ATTEST: City Clerk g: lassessdist186-1 lreso increase pass Mayor RESOLUTION NO. - 2001 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DUBLIN DECLARING THE RESULTS OF AN ASSESSMENT BALLOT PROCEEDING AND APPROVING CERTAIN ACTIONS WHEREAS, the City Council of the City of Dublin called and duly held an assessment ballot proceeding for Landscape and Lighting District No. 86-1 (hereafter referred to as the "District"), pursuant to Resolution No. 99-01 for the purpose of presenting to the qualified property owners within the District a proposition for the increase in the assessments and an assessment range formula to allow for reasonable increases; and, WHEREAS, The landowners of record within the District as of the close of the Public Hearing held on August 7, 2001 denied the increase in the assessments and the assessment range formula to allow for reasonable increases; and, NOW, THEREFORE BE IT RESOLVED, DETERMINED, AND ORDERED BY THE CITY COUNCIL FOR THE DISTRICT, AS FOLLOWS: Section 1 The above recitals are true and correct. Section 2 The canvass of the votes cast in the District at the assessment ballot proceeding held in the District on August 7, 2001, is hereby denied. ' Section 3 The proposition, presented to qualified property owners of the District for receipt by the City Clerk on August 7, 2001, each has received a vote, weighted according to the proportional financial obligation of the affected property. Of the qualified property owners voting at said assessment ballot proceeding, the proposition has failed. The City Council is hereby authorized to take the necessary steps to approve the Engineer's Report, as amended, to reflect the results of said ballot proceeding, and lower the assessment amount to the allowable rate of said District. Section 4 The City Clerk is hereby directed to enter this Resolution on the minutes of the City Council, which shall constitute the official declaration of the result of such assessment ballot proceeding. Section 5 This Resolution shall become effective immediately upon its adoption. Section 6 The City Clerk shall certify the adoption of this Resolution. PASSED, APPROVED AND ADOPTED this 7th day of August, 2001. AYES: NOES: ABSENT: ABSTAIN: ATTEST: Mayor city Clerk g: ~assessdist186- I lreso increase fail CITY OF DUBLIN LANDSCAPING AND LIGHTING DISTRICT NO. 1986-1 (TRACT 5511) FISCAL YEAR 2001-2002 ENGINEER'S REPORT CONTENTS Assessment: Including Scope of Work, Estimate of Costs, Assessment Roll, and Method of Apportioning. Assessment Diagram ASSESSMENT WHEREAS, on March 20, 2001, the City Council of the City of Dublin, California, pursuant to the provisions of the Landscaping and Lighting Act of 1972, adopted its Resolution Directing Preparation of Annual Report for Maintenance Assessment District 1986-1 for the maintenance of improvements more particularly therein described; and WHEREAS, said Resolution directed the undersigned to prepare and file a report pursuant to Section 22565, et. seq., of said Act; NOW, THEREFORE, the undersigned, by virtue of the power vested in me under said Act and the order of the Council of said City, hereby make the following assessment to cover the portion of the estimated cost of the maintenance of said improvements and the cost and expenses incidental thereto, to be paid by said District. ESTIMATE OF COSTS (1) (2) (3) As Preliminarily As Finally As Filed Approved Approved Cost of Maintenance $82,041. O0 $82,041. O0 Capital Improvement Project $0.00 $0.00 Incidental Expenses , $46,692.96 $46,692.96 TOTAL COST $128,733.96 $128,733.96 Estimated 2001-02 Interest Income Applied to 2001-02 Operating Costs ($2, 086. 00) ($2, 086. 00) Prior Year Collections & Penalties ($329. 00) ($329. 00) Estimated S ,urplus fi~om 2000-01 Fiscal Year ($41,207.00) ($41,207.00) NET TO BE ASSESSED FOR FISCAL YEAR 2001-2002 $85,11L 96 $85,11L 96 As required by said Act, a diagram is hereto attached showing the exterior boundaries of said landscaping maintenance assessment district and also the lines and dimensions of each lot or parcel of land within said landscaping maintenance assessment district as the same existed at the time of the passage of said resolution, each of which lots or parcels having been given a separate number upon said diagrarm 2 I do hereby assess the net amount to be assessed upon all assessable lots or parcels of land within said landscaping maintenance assessment district by apportioning that amount among the several lots or parcels in proportion to the estimated benefits to be received by each such lot or parcel from the maintenance of said improvements, and more particularly set forth in the list hereto attached and by reference made a part hereof. Said assessment is made upon the several lots or parcels of land within said landscaping maintenance assessment district in proportion to the estimated benefits to be received by said lots or parcels respectively from the maintenance of said improvements. The diagram and assessment numbers appearing herein are the diagram numbers appearing on said diagram, to which reference is hereby made for a more particular description of said property. Each lot or parcel of land assessed is described in the assessment list by reference to its parcel number as shown on the Assessor's Maps of the County of Alameda for the Fiscal Year 2001/02 and includes all of such parcels excepting those portions thereof within existing public roads or rights of way to be acquired in these proceedings for public road purposes. For a more particular description of said property, reference is hereby made to the deeds and maps on file and of record in the office of the County Recorder of said County. 3 SCOPE OF WORK The following areas are to be maintained by this Maintenance Assessment District: I) The median and roadside landscaping along the north side of the street for the entire length of Willow Creek Drive. 2) Roadside landscaping along Shady Creek Drive within Lots 1, 2, 3, 4, 5, 6, 15, 16, 37, 38, and south of Lot 145, all within Tract 5511. 3) Roadside landscaping, wall fence, and pathway improvements along the west side of Dougherty Road between Amador Valley Boulevard and the northerly City Limit line, and along the north side of Amador Valley Boulevard between Dougherty Road and Wildwood Road. 4) Roadside landscaping, fence, and pathway improvements along the west side of Wildwood Road. 5)¸ Roadside landscaping, fence, wall, and pathway improvemems along the west side of Dougherty Road and the south side of Amador Valley Boulevard adjacent to Lot 150. 6) Roadside landscaping, fence, and pathway improvements along the west and north sides of Fall Creek Road. 7) Roadside landscaping and emergency access surfacing at the north end of Crossridge Road within the street right-of-way. ENGINEER'S COST ESTIMATE FISCAL YEAR 2001-2002 The estimated cost for the maintenance of improvements described in this Report for Fiscal Year 2001-02 is as follows: Maintenance (1) Weeding, fertilizing, pruning, plant replacement, irrigation system: (2) Utilities: $52,131.00 $29,910.00 Incidentals (1) Administration (2) Engineer's Report and Proceedings (3) Cost of County Collection (1.7%) (4) Delinquencies (1%) (5) Comingencies/Reserve $134.00 $&145.00 $1,44690 $851.12 $41,115.94 $82,041.00 $46,692.96 TOTAL: $12&733.96 ASSESSMENT ROLL Amount of Assessment for Assessment and Lot Number Property Owners Lots/Units 2001-2002 Tax Year Per Unit Total Lots 1 - 145 (Village VI) Individual Owners 145 lots $130.64 $18,942.80 Lot 150 (Village I) Unknown 56 units $65.32 $3,657.92 Lot 151 (Commercial Comer) Unknown 4 units $130.64 $522.56 Lot 149 (Village II) Individual Owners 248 units $65.32 $16,199.36 Lot 148 (Village III) Individual Owners 224 units $65.32 $14,631.68 Lot 146A (Village IV) Individual Owners 135 units $65.32 $8,818.20 Lot 146B (Village V) Unknown 204 units $65.32 $13,325.28 Lots 152-177 (Village VII) Individual Owners 138 units $65.32 $9,014.16 $85,111..96 The annual maintenance cost shall be increased annually beginning July 1, 2002, by the percentage increase in the Bay Area Urban Wage Earner Consumer Price Index ("Index") (applies to all costs except utilities), plus any actual increase in the cost of utilities (power and water). If the Bay Area Urban Wage Earner Consumer Price Index is unavailable or deemed by the City Council to be inappropriate, a comparable consumer price index, as approved by the City Council, shall be used to replace the Bay Area Urban Wage Earner Price Index. SAMPLE CALCULATION: Assume an increase in the index of 1% and a utility increase of 5%. MAINTENANCE COST LESS UTILITY COST (SUBJECT TO RATE INCREASE ONLY) $85,320 $(29,910) ASSESSMENT SUBJECT TO INDEX INCREASE $55,410 INDEX INCREASE (ASSUMED 1%) 55,410 x .01 = 554 $554 ENERGY COST 5% UTILITY RATE INCREASE2K910X.05=l,4~ $29,910 $1,495 NEW TOTAL MAINTENANCE COST $87,369 METHOD OF APPORTIONING Each single family lot shall be assigned a benefit unit of one (1), each multifamily unit assigned a benefit unit of one-half (1/2), the commercial lot shall have a benefit unit of four (4), and the open space lots shall have a benefit unit of zero. This gives the following benefit units and apportionments for each Village for this Fiscal year: Number of Benefit % of Total Living Units Units Assessment Lot 150 Village I 56 28 4.30 Lot 149 Village II 248 124 19.03 Lot 148 Village III 224 112 17.19 Lot 146A Village IV 135 67.5 10.36 Lot 146B Village V 204 102 15.66 Lot 1-145 Village VI 145 145 22.26 Lots i52-177 Village VII 138 69 10.59 Lot 151 Commercial 0 4 0.61 Lots A - D Open Space 0 0 0.00 , Total: 1,150 651.5 100.00 7 CITY OF DUBLIN LANDSCAPING AND LIGHTING MAINTENANCE ASSESSMENT DISTRICT 86-1 CERTIFICATIONS FISCAL YEAR 2001-2002 I, the City Clerk of the City of Dublin, California, hereby certify that the foregoing Engineer's Report, including Assessment, in the mounts set forth in Column (1), with the diagram thereto attached, was filed with me on June 19, 2001. I, the City Clerk of the City of Dublin, California, hereby certify t~ the foregoing Assessment, with the diagram thereto attached, was preliminarily approved and confirmed by the City Council of said City by its Resolution No. 99-01 duly adopted by said Council on June 19, 2001. I, the City Clerk of the City of Dublin, California, hereby certify ~ the foregoing Assessment, with the diagram thereto attached, was finally approved and confirmed by the City Council of said City by its Resolution No. -01, duly adopted by said Council on August 7, 2001. I, the City Clerk of the City of Dublin, California, hereby certify that a certified copy of the Assessment and diagram was filed in the office of the County Auditor of the County of Alameda, California, on August 10, 2001. 146 B Dod~HERTY RoAD LOT LOT ~' DETAIl. A - '" SIll:ET 2 14~ A N SEE .DETAI~. J~::. 'SHEET-2'~' 3' LOT 'G' LOT ~' COUNTY FLOOD CONTROL WATER CONSERVATION D/STRICT ,PA~CEL " C 'SERIES NO 84-07G954 ASSESSMENT' DIAGRAM .Street Lighting Maintenance AsseSsment Distriot CITY OF DUBLIN ALAIVllEDA cOUNTY~ CALIFORNIA / OETAIL~ B RD. 2701 ,Street' Ughting. M~in~,en~ne~: /