CITY COUNCIL STAFF REPORT
MEETING DATE: May 18, 2016
PREPARED BY: Judy Viegas, Admin 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 2016-17
2. Provide approval of the Engineer's Annual Report 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 June 15, 2016.
BODY
COUNCIL PRIORITIES, GOALS & STRATEGIES:
Ongoing Priorities
Maintaining Fiscal Responsibility
Supporting Youth
REPORT NARRATIVE:
Landscape Assessment District No. 1 was created to pay for the maintenance of the parks and common area landscaping in new neighborhoods benefiting from the open space. Per Streets and Highways Code Sections 22623 to 22631, an Engineer's Annual Report, attached, 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 June 15, 2016.
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. One subarea, Rose Haven, is proposed to experience an increase from Fiscal Year 2015-16; however, the increase does not exceed the voter-approved maximum authorized assessment rate. In addition, one subarea, Jackson Meadows Number 7 Zone, is proposed to experience a decrease in assessment rate.
COMMUNITY ENGAGEMENT: Inform
All residents residing in the subarea where the assessment rate is increasing have been informed via direct mail. This year the City has provided notice much earlier to residents of the increased assessment. The notice provided the residents with contact information for City staff, date and location of the Council meetings. Additionally, staff has initiated this process earlier should the Council need extended time to evaluate and communicate with residents as discussed last year.
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, under the Landscaping and Lighting Act of 1972, 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 15, 2015, City Council adopted the FY 2015-16 Annual Assessments and Ordering Levy for Assessments for the District.
The Lighting and Landscape District will implement policies and activities that are aligned with the priorities, goals and strategies the City Council has set for 2016:
Supporting Youth
• Park maintenance activities provide a safe and supportive community that provide opportunities for Morgan Hill's youth to succeed and develop their full potential
FISCAL AND RESOURCE IMPACT:
The cost for preparation of the Engineer's Annual Report will be paid for by the Assessment District. It is anticipated that the District will generate $184,784.10 in revenues in Fiscal Year 2016-17. Given that expenses of $203,692 have been included in the recommended budget, due to some specific projects that are planned in two subareas, the District’s reserves are projected to decrease by $18,907.90 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