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HomeMy WebLinkAbout1999-05-11 - AGENDA REPORTS - LMD T31 SHANGRI LA (2)CITY OF SANTA CLARITA AGENDA REPORT UNFINISHED BUSINESS City Manager Approval Item to be presenteAWavne eber DATE: May 11, 1999 SUBJECT: RESOLUTION TO MODIFY DISTRICT BOUNDARIES AND MAIL BALLOTS FOR RESIDENTS TO VOTE ON PROPOSED ASSESSMENT INCREASE FOR SANTA CLARITA LANDSCAPE MAINTENANCE DISTRICT NO. T31 (SHANGRI-LA) LOCATED ALONG SOLEDAD CANYON ROAD AT SHANGRI-LA DRIVE RESOLUTION NO. 99-53 DEPARTMENT: Parks, Recreation, and Community Services RECOMMENDED ACTION City Council adopt Resolution No. 99-53 to modify district boundaries, initiate proceedings, approve the preliminary Engineer's Report, mail ballots, and set the public hearing for July 13, 1999. BACKGROUND This item was continued from the regular City Council meeting of April 27, 1999 to allow more time for staff to meet with the Shangri-La and Outlook Association Boards. Since then, staff has continued to meet with both Association Boards and homeowners to reach an agreement on the proposed assessment rate. As a result, both the Shangri-La and Outlook Homeowners Association Boards asked the City to move the ballot process forward and to work cooperatively with them to provide further information to the Association residents. Currently, the assessment rate of $29 a month per parcel for landscape maintenance in District No. T31 (Shangri-La) is inadequate to fully maintain the 16 acres of common area landscaping installed by the developer twelve years ago. The district was originally set up for only 5 acres in this area. There are 182 units in the developed areas of the Shangri-La and Outlook Homeowners Associations and 259 undeveloped units owned by the developer. A total of 441 units pay into the district at a rate of $29 per month. However, there are currently only 16 landscaped acres maintained within Shangri-La/Outlook area and no maintained landscape within the undeveloped areas. The current revenues received from all 441 units are sufficient to cover the basic maintenance, utilities and administration costs of the existing 16 acres of landscaping only. When the undeveloped areas are built, additional landscaped Adopted: Agenda Item:wD acres will be added but there will be no additional funds. This will create an immediate and long-term deficit. Several options were evaluated and discussed with the Association Boards and homeowners. One option is for all 441 units to pay for the 60 acres of landscape maintenance at build out. The City's previous analysis did not include a full reserve balance or provisions for one-time slope protection costs, which are $8 per unit per month. The recommended rate that would include reserves and one time costs for slope protection for this would be $75 per unit per month. A second option is for the undeveloped areas to be removed from the district. The district would then consist of 182 Association units that would only pay for the 16 acres of developed landscaped area. The recommended rate for this option that was agreed upon by the Association Boards would be the proposed increase to $65 per unit per month. Other options include dissolving the district or leaving the rate the same. Each Association would have to make up the difference through Association funds. To fund a full maintenance contract and pay for repairs and replacement, an additional $36 a month per parcel assessment is recommended. In order to increase the assessment, ballots for the $36 increase or for a lesser amount as agreed upon by the City and Homeowners Association must be delivered to all property owners in the district for their vote 45 days prior to the proposed public hearing. At the public hearing, all votes received will be tabulated. A simple majority is required to approve the rate increase. If the vote fails, the increase will not be implemented and the existing rate of $29 per month ($348 annually) will remain in place. The District's existing fund balance will be used to provide full services for next year. The Homeowners Association will be responsible for reserves and any additional costs. If the vote passes, the combined assessment of $65 per month ($780 annually) will be placed on property tax bills for fiscal year 1999-2000. This procedure is in full compliance with Proposition 218. City staff met again with the Board of Directors of the Shangri-La and Outlook Associations on April 21, 1999 and on May 3, 1999 to discuss district budgets and landscaping needs. The budget line items were carefully evaluated and found to be correct. The Board also requested that the district fully fund the reserves as recommended in the reserve study and the one time costs. The board members have requested that the district boundaries be modified to exclude the undeveloped portions. City staff is working closely with the Boards to provide information to the homeowners. An agreement was made for a timeline that will allow for City staff and the Boards to continue to meet with residents and still comply with time constraints for the annual assessment process. A meeting with the district members is scheduled for the week of May 17. Given the recent meetings, staff is recommending that the City Council modify the district boundaries, initiate proceedings, approve the preliminary Engineer's Report, mail ballots, and set the public hearing for July 13, 1999. ALTERNATIVE ACTION Do not initiate proceedings. Other direction as determined by City Council. FISCAL IMPACT This increase will provide additional funding for the full maintenance of common area landscaping in the development. The estimated revenues and expenditures for annual maintenance will be $124,488. ATTACHMENTS Resolution No. 99-53 Exhibit "A" Location Map Engineer's Report (Available in the City Clerk's reading file) NED:Itk counci Van9MPt/1999/31ba114. doc r EXHIEIT A Zone T-3 MAP —SHANGRI-LA and OUTLOO �� ��%�".t ��`��/�Illll-1•J/I�III,��IiZ''�ll/�//.I ������%���=try tf'� 1, /'. , /i% ~i ,�".�.\ a.��� 1 �1'