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HomeMy WebLinkAbout2003-09-16; City Council; 17308; Street Lighting & Landscape District No. 29- 16-03 MTG. @$,@W@ 3EPT. FIN CITY OF CARLSBAD -AGENDA BILL TITLE: STREET LIGHTING AND LANDSCAPE FORMATION AND APPROVING A LOAN FROM THE GENERAL FUND FOR DISTRICT FORMATION DISTRICT NO. 2: INITIATING PROCEEDINGS FOR -4 DEPT. HD. cu-- CITY MGR. 3iiL RECOMMENDED ACTION: Adopt Resolution No. 2003-241 , initiating proceedings for the formation of a Special Assessment District designated as Street Lighting and Landscaping District No. 2 and the levy of annual assessments therein and ordering the preparation of an Assessment Engineer’s Report. Adopt Resolution No. 2003-242 , approving a loan of $30,000 from the General fund to cover the formation costs of Street Lighting and Landscaping District No. 2, and the appropriation of funds. ITEM EXPLANATION: The purpose of this agenda bill is to request Council’s approval of two resolutions necessary to begin the formation of the City’s Street Lighting and Landscaping District No. 2 in compliance with the procedures of the California Streets and Highways Code. BACKGROUND: In 1983, the City of Carlsbad Street Lighting and Landscaping District No. 1 (“District No. I”) was formed as a citywide district according to the provisions of the California Streets and Highways Code, known as the Landscaping and Lighting Act of 1972. District No. 1 initially included only one citywide zone, and was formed to annually assess the cost of operating and maintaining the City’s lighting system to each parcel in the City benefiting from street lights (in essence, every developed parcel in the City). In June 1989, the City Council approved the addition of two landscaping zones to District No. 1: a citywide Median Landscaping Zone (Median Zone) and a Street Tree Improvement Zone (Tree Zone), which is not citywide. The Tree Zone includes only properties within the City that are adjacent to street trees located within the public parkway areas. The Median Zone includes all properties in the City and funds the maintenance of the street medians located throughout the City. Although District No. 1 was created to provide for both the maintenance and replacement of street lights, medians and trees, the City has never accumulated sufficient fund balances to pay for replacement costs out of District No. 1 funds. Past practice has been to have any significant replacement costs funded through the Capital Improvement Program with General fund monies. In 1996, California voters approved Proposition 218, which dictated further procedures to be implemented in the processing of District No. 1. In addition to the calculation of a “General Benefit” portion in each zone that cannot be assessed to the property owners, Proposition 218 requires voter approval for any increase in the assessment rate. For the past seven fiscal years, the City has not raised the assessments in any of the zones within District No. 1. Due to the inability to raise assessments to match the true costs of maintaining each zone without going to a vote, the City has had to rely on previously accumulated fund balances to supplement the annual assessments in order to cover the actual costs of maintaining each zone. The City has been fortunate to have adequate fund balances to cover any deficit; however, beginning with the prior fiscal year, the Median Zone was no longer able to fund any deficits, as their fund balance had been depleted. If left unchecked, the total projected annual operating deficit for all three zones would range from $1.6 million in fiscal year 2003-04 to $3.7 million in fiscal year 2012-13. I Page 2 of Agenda Bill No. 17,308 Zone Medians Street Lighting Street Trees The following table provides an estimate by Zone of the projected annual deficits: Projected Annual Deficit $729,000 to $1.6 million Fund Balance Depleted By Funds already depleted $852,000 to $1.8 million $67.000 to $273.000 FY 2004-05 FY 2009-1 0 To address the future funding of these zones, staff is recommending a two-step approach, (1) to form a new District for new developments in the City (District No. 2), and (2) the formation of a replacement District for the rest of the City (District No. 1). Both Districts would include formula-driven assessments that would increase each year by a pre-approved escalator. This would ensure that adequate funding is available to cover both future operating and capital expenditures. A benefit to forming District No. 2 (step I) for future development in the City is that if the voters do not approve the replacement District (step 2), the City would be able to capture new development in District No. 2, thereby establishing an adequate funding source for maintenance in the new developments. An additional benefit to forming District No. 2 is it allows the City the ability to include developments in the District that would like their Homeowner Associations (HOAs) to maintain the improvements (street lights and trees) due to the level of service required. On an annual basis, the City would calculate the cost to maintain these improvements, but would place a $0 assessment on the tax roll for these properties. If, at any time in the future, the HOA does not maintain the improvements to the City standards, the City could provide the maintenance of the improvements, and place an assessment on the tax roll for these properties, thereby recovering the costs incurred by the City. Currently, the City would have to place a lien on the HOA to recover any costs incurred by the City, since the City cannot place $0 assessments on the tax roll in District No. 1 and then raise the assessment at a later date without property owner approval. Staff is proposing that each development within District No. 2 be considered a separate zone, with their own assessment based on the costs for that particular area of the City. At this point in time, the first zone in District No. 2 would be the Calavera Hills development. However, staff is working with other developers currently building communities in the City, and District No. 2 could include additional zones for these developments when the District is actually formed. Once District No. 2 is formed, staff will continue to work with developers who would like to build communities in the City, to have these developments annex into the new district. Although District No. 2 will allow for the maintenance and replacement of landscaping and street lighting improvements, staff is initially proposing that only the maintenance of street trees and street lighting be included in District No. 2, while the maintenance of medians remain in District No. 1. Staff is still evaluating whether medians should be included in District No. 2, due to some of the complexities and risks associated with the calculation of general benefit as it pertains to medians. This issue will be resolved prior to the formation of District 2. Another possible solution to solve the funding issue of District No. 1 is to form a replacement district. Staff is recommending that the first step in evaluating whether a replacement district would be a viable option for the City is to have a feasibility study be completed. Staff will be returning to Council at a later date to discuss what this process would look like, and to seek Council approval for this project. By approving the two attached resolutions, Council is authorizing the following actions: 9 The proceedings to form Street Lighting and Landscaping District No. 2 and levy assessments are initiated. 9 Staff is instructed to prepare an Assessment Engineer's Report for the new district. > A loan from the General fund will be made to District No. 2 to cover the initial formation costs of the District. Staff will return to Council at a later date with the Assessment Engineer's Report as well as the petitions and ballots from all the affected property owners, with the Resolution of Intention. At that time, the public hearing date will be set to finalize the formation of the new district. L Page 3 of Agenda Bill No. 17,308 ENVIRONMENTAL REVIEW: The formation of Street Lighting and Landscaping District No. 2 will be required to undergo environmental review. If the Council approves initiating proceedings for the forrnation of District No. 2, an environmental impact assessment will be prepared by staff and the appropriate environmental document will be presented to the City Council for approval prior to or concurrent with the actual formation of District No. 2. FISCAL IMPACT: To begin the process of forming a new district, staff will need to employ the services of Harris & Associates to create the Engineer’s Report, and assist in the petitioning and balloting of the property owners. In addition, the City Attorney’s office has recommended that the City hire Best, Best & Krieger to assist the City with legal services related to the formation. These two services would be approximately $30,000, and a loan from the General fund is needed to cover these costs, to be recovered from the assessments placed on the 2004-05 tax roll. A portion of these costs will also be recovered from future annexations into District No. 2. EXHIBITS: 1. Resolution No. 2003-241 , initiating proceedings for the formation of a Special Assessment District designated as Street Lighting and Landscaping District No. 2 and the levy of annual assessments therein and ordering the preparation of an Assessment Engineer’s Report. 2. Resolution No. ~CW, - 347 , authorizing a loan of $30,000 from the General fund to cover the formation costs of Street Lighting and Landscaping District No. 2, and the appropriation of funds. 3. Proposed boundaries of Street Lighting and Landscaping District No. 2. DEPARTMENT CONTACT: KEVIN BRANCA; (760) 602-2418; kbran@ci.carlsbad.ca.us 3 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 RESOLUTION NO. ~303-241 EXHIBIT 1 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD INITIATING PROCEEDINGS FOR THE FORMATION OF A SPECIAL ASSESSMENT DISTRICT DESIGNATED AS STREET LIGHTING AND LANDSCAPING DISTRICT NO. 2 AND THE LE\N OF ANNUAL ASSESSMENTS THEREIN AND ORDERING THE PREPARATION OF AN ASSESSMENT ENGINEERS REPORT WHEREAS, the CITY COUNCIL of the CITY OF CARLSBAD, CALIFORNIA, at this time proposes to initiate proceedings for the formation of and levy of annual assessments within a special assessment district pursuant to the terms and provisions of the “Landscaping and Lighting Act of 1972, being Division 15, Part 2 of the Streets and Highways Code of the State of California (the “1972 Act”), Article XlllD of the Constitution of the State of California (“Article XlllD”) and the Proposition 21 8 Omnibus Implementation Act (Government Code Section 53750 and following) (the “Implementation ActH) (the 1972 Act, Article XlllD and the Implementation Act are referred to collectively as the “Assessment Law“), in what is to be known and designated as STREET LIGHTING AND LANDSCAPING DISTRICT NO. 2 (the “Maintenance District”); and, WHEREAS, there has been submitted for approval a map designated by the name of this Maintenance District, generally showing the area and property to be assessed in such Maintenance District and the proposed zones within such Maintenance District; and, WHEREAS, at this time the City Council desires to initiate proceedings to consider the formation of such Maintenance District and to provide for the levy of assessments for the next ensuing fiscal year to finance the annual costs of the maintenance and servicing of improvements within the proposed Maintenance District. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Carlsbad, California, as follows: I. Recitals. The above recitals are all true and correct. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 2. Proposal to Form Maintenance District. The City Council hereby proposes to form a special Maintenance District and to provide for the levy of annual assessments within such proposed Maintenance District pursuant to the provisions of the Assessment Law, such Maintenance District to be designated as STREET LIGHTING AND LANDSCAPING DISTRICT NO. 2. 3. Description of lmurovements to be Maintained and Serviced and Maintenance Work and Services. The public interest and convenience requires, and the City Council does propose at this time to initiate proceedings for the formation of a Maintenance District to provide for the financing of the maintenance and servicing of certain improvements including both landscaping improvements and appurtenances and street lighting improvements and appurtenances. The landscaping improvements to be maintained and serviced include, but are not limited to, plants, shrubbery and trees, irrigation systems, hardscapes, fixtures, sidewalks and appurtenant facilities. Such landscaping improvements may be located in public street and sidewalk rights-of-way, including medians, parkways and dedicated easements within the boundaries of the Maintenance District. The street lighting improvements to be maintained and serviced include, but are not limited to, poles, fixtures, bulbs, conduits, conductors, equipment including guys, anchors, posts and pedestals, metering devices and appurtenant facilities as required to provide street lighting and traffic signals in public street and sidewalk rights-of-way and dedicated easements within the boundaries of the Maintenance District. The maintenance of such improvements shall include the furnishing of services and materials for the ordinary and usual maintenance, operation, repair and servicing of such landscaping and street lighting improvements and appurtenant facilities, including repair, removal or replacement of all or a part of any landscaping, public lighting or appurtenant Page 2 of 4 of Resolution No. 2003-241 5 1 2 3 4 5 6 7 a 9 10 11 12 13 14 15 16 17 I8 19 20 21 22 23 24 25 26 27 28 facilities; providing for the life, growth, health and beauty of the landscaping, including cultivation, irrigation, trimming, spraying, fertilizing and treating for disease or injury; the removal of trimmings, rubbish, debris and other solid waste; and the cleaning, sandblasting, and painting of improvements to remove or cover graffiti. The servicing of the improvements shall include the furnishing of water for the irrigation of the landscaping and the maintenance of any of the public lighting improvements and the furnishing of electric current or energy, gas or other illuminating agent for the public lighting facilities, or for the lighting or operation of the landscaping improvements and the administration of all aspects of the Maintenance District. 4. Description of the Maintenance District and Zones Therein. The improvements to be maintained provide a special and direct benefit to the property and parcels of land within the boundaries of the Maintenance District. For a general description of the area and boundaries of such proposed Maintenance District and the zones therein, reference is made to a map of the Maintenance District showing the boundaries of the proposed Maintenance District and the zones therein including the lands and property to be assessed to pay the costs and expenses of the proposed maintenance work. Such map is entitled "PROPOSED BOUNDARIES OF STREET LIGHTING AND LANDSCAPING DISTRICT NO. 2" and is hereby submitted, and the same is hereby approved and adopted. Such map shall remain on file in the Office of the City Clerk with the transcript of these proceedings and be open for public inspection. 5. Assessment Enqineer's Report. The improvements proposed to be maintained are hereby referred to HARRIS & ASSOCIATES, ASSESSMENT ENGINEER, who is hereby directed to make and file the Assessment Engineer's Report as required by the provisions of the Assessment Law generally containing the following: Page 3 of 4 of Resolution No. 2003-241 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 A. Plans and specifications describing the general nature, location and extent of the improvements to be maintained and the extent of the maintenance work and the class and type of improvements to be maintained within each zone; B. An estimate of the cost of the maintenance and servicing of the improvements for the Maintenance District for fiscal year 2003-2004, including all incidental expenses; C. A diagram for the Maintenance District, showing the area and properties proposed to be assessed; D. The maximum annual assessment for Fiscal Year 2003-2004 of the estimated costs of the maintenance of the improvements, assessing the net amount upon all assessable lots and/or parcels within the Maintenance District in proportion to the special benefits received by such lots and/or parcels from such improvements. PASSED, APPROVED AND ADOPTED at a Regular Meeting of the City Council of the City of Carlsbad on the 16th day of SEPTEMBER, 2003 by the following vote, to wit: AYES: Council Members Lewis, Finnila, Kulchin, Hall, Packard NOES: None ABSENT: None ATTEST: LORRAINE M. W&OD, City Clerk ' d Page 4 of 4 of Resolution No. 2003-241 (SEAL) 'I 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 EXHIBIT 2 RESOLUTION NO. 2003-242 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, APPROVING A LOAN OF $30,000 FROM THE GENERAL FUND TO COVER THE FORMATION COSTS OF STREET LIGHTING AND LANDSCAPING DISTRICT NO. 2, AND THE APPROPRIATION OF FUNDS WHEREAS, staff is recommending that a new lighting and landscaping district be formed to help address the funding issues with the current Street Lighting and Landscaping District No. I; and WHEREAS, initial funding for formation costs in the amount of $30,000 for the Street Lighting and Landscaping District No. 2 is needed; and WHEREAS, sufficient funds are available in the General fund to provide a loan to the new District; and WHEREAS, Council authorizes the Finance Director to appropriate $30,000 to fund the formation costs and to record a loan from the General fund for this appropriation. The loan will be repaid to the General fund from future assessments collected by the new District. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Carisbad, California, as follows: 1. That the above recitations are true and correct. 2. That a loan from the General fund in the amount of $30,000 and budget appropriations in the amount of $30,000 is authorized in the Street Lighting and Landscaping District No. 2 to pay for expenditures related to the formation of the new District. I/ /I I/ I/ 11 I/ I/ 1 2 3 4 5 6 7 8 9 IO 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 PASSED, APPROVED AND ADOPTED at a regular meeting of the City Council on the 1. day of SEPTEMBER , 2003, by the following Vote, to Wit: AYES: Council Members Lewis, Finnila, Kulchin, Hall, Packard NOES: None ABSENT: None ATTEST: LORRAINE M. WOQb, City Clerk (SEAL) Page 2 of 2 of Resolution No. 2003-242 Pacific Ocean I Legend = Calavera Hills Printed 25 August 2003 Map mated by the City of Catisbad GIs. Portions of this DERlVED PRODUCT contain geographic infomation copyrighted by SanGIS. All Rights Reserved.