CITY COUNCIL STAFF REPORT
MEETING DATE: June 17, 2015
PREPARED BY: Judy Viegas, Administrative Analyst/Community Services
APPROVED BY: City Manager
Title
INITIATE ANNUAL ASSESSMENT PROCESS FOR LANDSCAPE ASSESSMENT DISTRICT NUMBER 1
END
RECOMMENDATION(S)
RECOMMENDATION
Adopt the resolutions approving the following actions:
1) Initiate the proceedings for the levy of assessments for Fiscal year 2015-16
2) Provide approval of the Engineer's Annual Report (Exhibit B) and the proposed assessment levy, and
3) Declare the City Council's intention to levy the assessments in the District and to set the Public Hearing date for July 15, 2015.
BODY
COUNCIL PRIORITIES, GOALS & STRATEGIES:
Ongoing Priorities
Protecting the environment
Maintaining fiscal responsibility
Preserving and cultivating public trust2015 Focus Areas
Infrastructure Funding and Advocacy
REPORT NARRATIVE:
Landscape Assessment District No. 1 (Exhibit A) was created to pay for the maintenance of the parks and common area landscaping in new neighborhoods benefiting from the open space. Per Government Code Sections 22623 to 22631, an Engineer's Annual Report (Exhibit B) is required to set the annual assessments in the Landscaping Assessment District and establish a Public Hearing date. This Public Hearing date has been scheduled for the City Council meeting of July 15, 2015.
In May of 2011, reserve targets for each subarea were recommended and approved by the Council. The recommended assessment rate for each subarea, which is reflected in the Annual Report, has been proposed at a level that will enable the City to maintain each subarea and make reasonable improvements during the fiscal year. Five subareas are proposed to experience an increase from Fiscal Year 2014-15; however, the increases do not exceed the voter-approved maximum authorized assessment rates. In addition, two subareas are proposed to experience a decrease in assessment rates. Exhibit B details the proposed Fiscal Year 2015-16 assessments.
In the case of two subareas, La Grande and Sandalwood, maintenance services continue to be minimized to weed abatement only. This is necessary to reduce excessively high negative fund balances which accumulated as a result of several past years' shortfall in revenue collected vs. costs for annual maintenance. The Mill Creek subarea also has a negative fund balance. Staff will engage the residents of this sub-area in the next Fiscal Year to develop a plan to address the negative fund balance prior to development of their FY 15/16 Budget.
COMMUNITY ENGAGEMENT: Inform
All residents residing in subareas where the assessment rate will be changing will be informed via direct mail. These changes to the rates all fall within assessment cap for each subarea approved by the voters in each subarea.
ALTERNATIVE ACTIONS:
There is no other practical alternative action. Should the Council wish to look into an alternate method for managing the assessment district maintenance, it could choose to approve the recommendations and direct staff to return to the Council with additional recommendations on alternate methods for managing the assessment district maintenance.
PRIOR CITY COUNCIL AND COMMISSION ACTIONS:
In 1991 the City Council of the City of Morgan Hill (the "City"), State of California, under the
Landscaping and Lighting Act of 1972 (the "Act"), created the Fox Hollow/Murphy Springs Landscape Assessment District, and in 2010 chose to rename it to the City of Morgan Hill Landscape Assessment District No. 1 (the "District").
On July 16, 2014, City Council adopted the FY 14/15 Annual Assessments and Ordering Levy for Assessments for the District.
FISCAL AND RESOURCE IMPACT:
The cost for preparation of engineer's Annual Report will be paid for by the Assessment District. It is anticipated that the District will generate $186,995.37 in revenues in Fiscal Year 2015-16. Given that expenses of $185,284.01 have been included in the recommended budget, the District's reserves are projected to grow by $1,711.36 in the coming year. Staff continues to build up small, appropriate reserves for each subarea to minimize the potential for negative balance accumulation. Providing administrative oversight to the District is a core activity of the Community Services Department's work program.
CEQA (California Environmental Quality Act):
Categorical Exemption
The planned maintenance and management of the subareas within the lighting and landscape assessment district fall within the CEQA categorical exemption of Class 1, Existing Facilities.
LINKS/ATTACHMENTS:
1. Resolution Initiating Proceedings
2. Resolution Approving the Engineer's Report
3. Resolution of Intent
4. Engineer's Report