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HomeMy WebLinkAbout2015-06-09 - AGENDA REPORTS - ANNUAL ASMTS OSPD (2)Agenda Item: 12 CITY OF SANTA CLARITA Q) AGENDA REPORT PUBLIC HEARING CITY MANAGER APPROVAL: 2! DATE: June 9, 2015 SUBJECT: ANNUAL LEVY OF ASSESSMENTS FOR OPEN SPACE PRESERVATION DISTRICT DEPARTMENT: Administrative Services PRESENTER: Darin Seegmiller RECOMMENDED ACTION City Council conduct a public hearing and adopt a resolution approving the Engineer's Report for the Fiscal Year 2015-16 annual levy of assessments for the Open Space Preservation District. BACKGROUND The Open Space Preservation District (OSPD) was created in July 2007 following overwhelming property -owner approval through a Citywide assessment ballot process. The objective of the OPSD is to finance the purchase and preservation of undeveloped land in and around the City of Santa Clarita. The initial maximum OSPD assessment rate, as approved by the property owners of Santa Clarita, was $25 per equivalent benefit unit (EBU) starting Fiscal Year (FY) 2007-08. Property owners further authorized a $1 increase in the maximum assessment rate each subsequent fiscal year. The $1 annual increase was included as part of the proposal approved by the vote of property owners in order to maximize the ability of the OSPD to purchase and preserve undeveloped land in and within proximity to the City of Santa Clarita. Annually, the City Council is authorized to levy an OSPD assessment up to, but not to exceed, the maximum assessment rate. For FY 2015-16, the maximum assessment rate is $33 per EBU. Since formation, 2,487 acres have been acquired using OSPD funds, with many purchases leveraged with grant funds, land bank mitigation funds, or bridge and thoroughfare funds. The City has partnered with a number of public entities including Santa Monica Mountains Conservancy, Riverside Land Conservancy, The Trust for Public Land, County of Los Angeles, and Mountains Recreation Conservation Authority. p 15-311> (tee ftf d: Page I IAI ���o U �D oxo Packet Pg. 93 During FY 2014-15, the OSPD funded acquisitions of 589 acres of dedicated open space in the Newhall Pass, and during the coming operational year, staff anticipates the acquisition of approximately 60 acres in Quigley Canyon, 93 acres in the eastern portions of Placerita Canyon, another 235 acres in the Newhall Pass, and other areas within appropriate proximity to the City of Santa Clarita. During the past three years, approximately $6 million of OSPD funds were used to purchase and preserve land. In November 2007, four months following creation of the OSPD, the City Council authorized borrowing approximately $15.5 million, to be repaid over 30 years with future OSPD assessment revenue, including the property -owner -authorized annual $1 increase in the assessment rate. To maximize this initial pool of financing generated against authorized future OSPD revenue, including the $1 annual increase in the assessment rate, this borrowing was formulated with ascending (increasing) annual debt service payments. This "ascending debt' structure was utilized to maximize the ability of the City through the OSPD to purchase and preserve the greatest amount of undeveloped land. For example, OSPD debt service was $823,851 for FY 2014-15; $848,451 for FY 2015-16; and $876,751 for FY 2016-17. Annual OSPD debt service costs continue to increase every year through the 30 -year repayment period and will total $1,440,312.50 in FY 2036-37, the final year of the OSPD. To meet these rising annual debt service costs, the OSPD assessment rate will need to increase periodically. The maximum assessment rate for FY 2015-16 is $33 per EBU, and the actual applied assessment rate has been $30 per EBU since FY 2012-13. Staff projects that if the rate remains $30 per EBU, by FY 2019-20 the OSPD will be able to fund annual purchases totaling $587,000. Staff also projects that if the rate is gradually adjusted to track with the maximum amount authorized by property owners, by FY 2019-20 the OSPD will be able to fund annual purchases totaling$I.1 million. In consideration of how the OSPD's debt service is structured, recent and forecasted future property acquisitions; and increased personnel and operational costs to manage land purchased through the OSPD, staff recommends levying an assessment in the amount of $31.50 per EBU. The process of ordering, approving, and setting the Public Hearing on the annual levy of the OSPD is required by the Landscaping and Lighting Act of 1972 and allows the City to continue levying assessments in FY 2015-16 for the purpose of acquiring open space properties. The attached Engineer's Report describes the OSPD, including the improvements, budgets, parcels, and assessments to be levied for FY 2015-16, as they existed at the time of the passage of the Resolution of Intention. This Engineer's Report was prepared by Willdan Financial Services on May, 13, 2015, and updated on June I, 2015, to reflect the most up-to-date financial forecasts. ALTERNATIVE ACTIONS Other direction as determined by City Council. FISCAL IMPACT There is no impact to the General Fund associated with this action Page 2 Packet Pg. 94 ATTACHMENTS District Public Hearing Notice District Fiscal Year 2015-16 Resolution District Fiscal Year 2015-16 Engineer's Report (available in the City Clerk's Reading File) FY 15-16 Santa Clarita OSPD Assessment Roll (available in the City Clerk's Reading File) Page 3 Packet Pg. 95 CITY OF SANTA CLARITA NOTICE OF PUBLIC HEARING NOTICE IS HEREBY GIVEN: A Public Hearing will be held before the City Council of the City of Santa Clarita in the City Hall Council Chambers, 23920 Valencia Boulevard, 1st floor, Santa Clarita, California, on the 9th day of June 2015, at or after 6:00 p.m., to consider the FY 15-16 Annual Levy of Assessments for the City's Open Space Preservation District. The City Council, pursuant to the Landscaping and Lighting Act of 1972, being a Division of the Streets and Highways Code of the State of California, desires to levy annual assessments for the district pursuant to Article XIII D of the California Constitution. Proponents, opponents, and any interested persons may appear and be heard on this matter at that time. Further information may be obtained by contacting the Administrative Services Department, 23920 Valencia Boulevard, Santa Clarita, CA 91355; (661) 290-2202, Darin Seegmiller, Project Development Coordinator. If you wish to challenge this action in court, you may be limited to raising only those issues you or someone else raised at the public hearing described in this notice, or in written correspondence delivered to the City Council, at, or prior to, the public hearing. Dated: May 21, 2015 Kevin Tonoian, City Clerk Publish Dates: May 28, 2015; May 31, 2015 12.a Packet Pg. 96 12.b RESOLUTION NO. 15- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA CLARITA, CALIFORNIA, APPROVING THE FINAL ENGINEER'S ANNUAL LEVY REPORT, ORDERING THE LEVY AND COLLECTION OF ASSESSMENTS ORDERING CONTINUED ACQUISITIONS AND MAINTENANCE FOR THE CITY OF SANTA CLARITA OPEN SPACE PRESERVATION DISTRICT FOR FISCAL YEAR 2015-16 WHEREAS, the City Council, pursuant to the provisions of the Landscape and Lighting Act of 1972, Part 2, Division 15 of the California Streets and Highways Code (commencing with Section 22500) (hereafter referred to as the "Act"), did by previous Resolution, order the Engineer, Willdan Financial Services. to prepare and file a report in accordance with Chapter 1, Article 4, of the Act, commencing with Section 22565, in connection with the proposed levy and collection of assessments for the City of Santa Clarita Open Space Preservation District (District), for the fiscal year commencing July 1, 2015, and ending June 30, 2016; and WHEREAS, said Resolution was duly and legally published in the time, form, and manner as required by law and which Resolution is on file in the office of the City Clerk; and WHEREAS, the Engineer has prepared and filed with the City Clerk of the City of Santa Clarita, and the City Clerk has presented to the City Council such report entitled "Final Engineer's Report, City of Santa Clarita Open Space Preservation District, Fiscal Year 2015-16" (Report); and WHEREAS, the City Council has carefully examined and reviewed the Report as presented and is satisfied with each and all of the items and documents as set forth therein. and finds that the levy has been spread in accordance with the special benefits received from the property acquisitions, improvements, operation, maintenance, and services to be performed, as set forth in said Report; and WHEREAS, the City Council desires to levy and collect assessments against parcels of land within the District for the fiscal year commencing July 1, 2015, and ending June 30, 2016, to pay the costs and expenses of property acquisitions, operating, maintaining, and servicing the improvements within the District; and WHEREAS, the assessment rates within the District are exempt from the assessment balloting procedures set forth in Section 4 of Proposition 218, because the District was formed by consent of the landowners, and the proposed assessments per lot or parcel are not proposed to increase by more than the assessment rates approved by the landowners at the time of annexation into the District. Packet Pg. 97 12.b NOW, THEREFORE, the City Council of the City of Santa Clarita does hereby resolve as follows: SECTION I. That the above recitals are all true and correct. SECTION 2. The Final Engineer's Report as presented consists of the following: a. Plans and specifications describing the general nature, location, and extent of the improvements to be maintained and of the maintenance work; b. Estimate of the cost of maintenance of the improvements for the District for the Fiscal Year 2015-16; c. An annual assessment for Fiscal Year 2015-16 of the estimated costs of property acquisitions, the maintenance of open space properties and improvements to be maintained during such fiscal year, assessing the net amount upon all assessable lots and/or parcels within the District in proportion to the special benefits received; together with a formula pursuant to which such annual assessment may be adjusted annually for inflation pursuant to the Assessment Law without the necessity for additional assessment ballot procedures. The Final Engineer's Report, as presented, is hereby approved, and is ordered to be filed in the office of the Clerk of the City Council as a permanent record and to remain open to public inspection. SECTION 3. The Clerk of the City Council shall certify to the passage and adoption of this Resolution, and the minutes of this meeting shall so reflect the presentation of the Assessment Engineer's Report. SECTION 4. That the City hereby proposes an annual levy of assessments for Santa Clarita Open Space Preservation District thereon to provide for the following work: The acquisition of open space properties, and the installation, construction, or maintenance of any authorized improvements under the Act, including, but not limited to, landscape and irrigation improvements and any facilities which are appurtenant to any of the aforementioned or which are necessary or convenient for the maintenance or servicing thereof. SECTION 5. Following notice duly given, the City Council has held a full and fair Public Hearing regarding its Resolution approving and or amending the Report prepared in connection therewith; the levy and collection of assessments, and considered all oral and written statements, protests, and communications made or filed by interested persons. SECTION 6. The City Council hereby finds that each and every part of the Engineer's Report is sufficient, and the City Council hereby approves, passes on, and adopts the Engineer's Report as submitted to the City Council and filed with the City Clerk. Packet Pg. 98 SECTION T The City Council does hereby reference the Engineer's Report, which indicates the amount of the assessments, the District boundaries, description of improvements, and the methods of assessment. The Engineer's Report is on file in the office of the City Clerk, and reference to the Engineer's Report is hereby made for all particulars. SECTION 8. The City Council hereby directs staff levy and file said assessments of $31.50 per Benefit Unit with the County Auditor for collection with the regular property taxes for Fiscal Year 2015-16. SECTION 9. The City Clerk shall certify to the adoption of this Resolution. PASSED, APPROVED, AND ADOPTED this 9th day of June 2015. MAYOR ATTEST: CITY CLERK DATE: 12.b Packet Pg. 99 STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES CITY OF SANTA CLARITA ) I, Kevin Tonoian, City Clerk of the City of Santa Clarita, do hereby certify that the foregoing Resolution was duly adopted by the City Council of the City of Santa Clarita at a regular meeting thereof, held on the 9th day of June, 2015, by the following vote: AYES: COUNCILMEMBERS: NOES: COUNCILMEMBERS: ABSENT: COUNCILMEMBERS: CITY CLERK 12.b Q Packet Pg. 100