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HomeMy WebLinkAbout1999-04-13 - AGENDA REPORTS - LMD T31 SHANGRI-LA ASSESS (2)CONSENT CALENDAR DATE: CITY OF SANTA CLARITA AGENDA REPORT April 13, 1999 City Manager Item to be SUBJECT: RESOLUTION TO 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 initiate proceedings, approve the Engineer's Report, mail ballots, and set the public hearing for June 8, 1999. BACKGROUND 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 common area landscaping installed by the developer twelve years ago. The landscaping, including irrigation facilities in this area, is nearing its life expectancy and is in need of repair and/or replacement. Several landscape maintenance firms were contacted regarding the level of service necessary in order to continue to maintain this area. It was determined the previous contractor was not able to handle either the required level of service or the necessary replacement or repairs to maintain the landscaping at a level acceptable by either the homeowners or the City. The current contractor is able to provide the proper level of service but the expense far exceeds the annual budget. To fund a full maintenance contract at the increased amount and pay for repairs and replacement, an additional $28 a month per parcel assessment will be necessary. In order to increase the assessment, ballots must be delivered to all property owners in the district for their vote 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. If the vote passes, the combined assessment of $57 per month ($684 annually) will be placed on property tax bills for fiscal year 1999-2000. This procedure is in full compliance with Proposition 218. AMU Agenda l f 9 trr Items. City staff met with the Board of Directors and residents of the Shangri-la and Outlook Associations to discuss district budgets and landscaping needs. There were mixed opinions among residents about the proposed increase. The City received calls and comments at the meeting in support of the increase but some also spoke in favor of no increase. 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:mm w=cil/agnrpts/1999/31ballot.doc ENGINEER'S REPORT CITY OF SANTA CLARITA LANDSCAPE MAINTENANCE DISTRICT NO. T31 FISCAL YEAR 1999/2000 SANTA CLARITA, CALIFORNIA Submitted April 13, 1999 ENGINEER'S REPORT CITY OF SANTA CLARITA LANDSCAPE MAINTENANCE DISTRICT NO. T31 TABLE OF CONTENTS Page I. Introduction................................................................................................ 1 II. Plans and Specifications............................................................................. 3 III. Estimated Costs of the Improvements........................................................ 3 IV. Assessment Diagram.................................................................................... 5 V. Assessment................................................................................................... 5 VI. Method of Assessment............:.................................................................... 5 Appendices A. Assessment Roll B. Assessment Diagra 2 ENGINEER'S REPORT CITY OF SANTA CLARITA LANDSCAPE MAINTENANCE DISTRICT NO. T31 I. INTRODUCTION This report is prepared in compliance with the requirements of Article 4, Chapter 1, of the Landscaping and Lighting Act of 1972, (hereinafter referred to as the "Act") which is Part 2, Division 15 of the California Streets and Highways Code. This report considers the proposed additional assessment for Santa Clarita Landscape Maintenance District No. T31. On July 1, 1998, the responsibility for Landscape Maintenance District No. T31 was transferred to the City's jurisdiction. The County, through the Department of Parks and Recreation, had previously administered Landscape Maintenance District No. T31 which had provided for the maintenance and servicing of the landscape improvements located in common areas throughout the Shangri-La area Northwest of Sierra Highway and Soledad Canyon Road for the past several years. While under the County jurisdiction, the rate to maintain the landscaping was not increased to keep pace with inflation. Pursuant to the Act, the City Council is the legislative body for the District and may increase the levy of annual assessments acting as the governing body for the operations and administration of the District. In addition, the Act further allows for assessments to be increased to meet necessary expenditures. The increased costs associated with the installation, maintenance and service of the improvements may be assessed to those properties, which are benefited by the installation, maintenance and service. Section 22608 of the Streets and Highways Code further states that proceedings for increasing assessments will be limited to the proposed increased amount. This report will be limited to the amount of the increase. RIGHT TO VOTE ON TAXES ACT (PROPOSITION 218) On November 5, 1996, the electorate approved Proposition 218, Right to Vote on Taxes Act, which added articles XIII C and XIII D to the California Constitution. The Proposition affects all assessments upon real property for a special benefit conferred on the property. Assessments imposed under the Landscaping and Lighting Act of 1972 are these types of benefit assessments. In order to continue to preserve the investment in the landscape improvements within District T31 an increase in the annual assessment is proposed. Each property owner who owns parcels subject to the additional assessment will be sent an Assessment Ballot requesting their approval for the additional assessment. Subsequent owners of parcels April 13, 1999 City of Santa Clarit¢ I would be made aware through title reports and Department of Real Estate "White Paper" reports that the parcels are in the district and subject to the assessments. Purchase of the parcel(s) is also an agreement by the new owners to be subject to the assessments. However, subsequent increases, if any, will be subject to the procedures and approval process of Section 4 of Article XIII D. The City may initiate proceedings for the additional assessment for continued maintenance and servicing of landscaping improvements by passing a resolution. This Resolution of Intention generally describes the district and the need for additional assessments and any proposed new improvements or any substantial changes in existing improvements and orders an engineer to prepare and file a detailed report. This report prepared by the engineer details only the proposed additional assessment to the existing district and must include; plans and specifications of the improvements; an estimate of the additional costs of the improvements, including maintenance and servicing; a diagram, i.e., map of the assessment district showing the boundary of the District; the parcels or lots which benefit, and an estimate of costs of the improvements, maintenance and servicing. Once the report is completed, it is presented to the City Council (the legislative body) for its review and approval as presented, or may be modified and approved. After the report is approved the City adopts the Resolution of Intention which declares its intent to levy and collect additional assessments, describes the improvements, including maintenance and servicing, refers to the District by its distinctive designation, refers to the report for the details of the District, and sets a time for a public hearing on the levy of the proposed assessment. Following the initial Council Meeting the City will send a notice of the public hearing and an Assessment Ballot with which the property owners can vote on the additional assessment. At the public hearing the City will count the Assessment Ballots returned and consider the public testimony in favor and/or opposing the additional assessment. At that time, the City Council may adopt a resolution confirming and levying the additional assessments to fund the maintenance and servicing of the improvements or abandon the proposed additional assessment. Additional assessments, if authorized, would be placed on the 1999/2000 County Tax Roll with the current assessments and would be collected with the regular County property taxes. Reserve funds in the current district would be used to fund the maintenance and service until assessment funds are distributed by the County Tax Collector in December of 1999. April 13, 1999 City of Santa Clarit¢ 2 II. PLANS AND SPECIFICATIONS The services necessary for District No. T31 include, but are not limited to, and may be generally described as follows: The operation, maintenance and servicing of ornamental structures, landscaping, including trees, shrubs, grass, and other ornamental vegetation, and appurtenant facilities, including irrigation systems and drainage devices located in public places within the boundaries of the Landscape Maintenance District. Maintenance means the furnishing of services and materials for the ordinary and usual maintenance, operation and servicing of the ornamental structures, landscaping and appurtenant facilities, including repair, removal, or replacement of all or part of any of the ornamental structures, landscaping or appurtenant 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 other solid waste; and pest control. Servicing means the furnishing of electricity for the operation of any appurtenant facilities, and water for the irrigation and control of the landscaping and the maintenance of any of the ornamental structures, landscaping and appurtenant facilities. Plans and Specifications for the improvements for District No. T31 to the Landscape Maintenance District are voluminous and are not bound in this report but by this reference are incorporated and made a part of this report. The plans and specifications are on file at the City. III. ESTIMATED COSTS OF THE IMPROVEMENTS The Act provides that the estimated costs of the improvements shall include the total cost of the improvements for Fiscal Year 1999/2000, including incidentals, which may include reserves to operate the District until funds are transferred to the City from the County around December 10 of the next fiscal year. The Act also provides that the amount of any surplus, deficit or contribution be included in the estimated cost of improvements. The net amount to be assessed on the lots or parcels within a district is the total cost of installation, maintenance and servicing with adjustments either positive or negative for reserves, surpluses, deficits and/or contributions. Estimated costs of improvements for Landscape Maintenance District No. T31, are voluminous and are not bound in this report but by this reference are incorporated and made a part of this report. The estimated costs are on file at the City where they are available for public inspection. April 13, 1999 City of Santa Clarita 3 ENGINEER'S REPORT CITY OF SANTA CLARITA LANDSCAPE MAINTENANCE DISTRICT NO. T31 1999/2000 FISCAL YEAR BUDGET ESTIMATE ASSESSMENT LOTS OR PARCELS: 207 TYPE OF LAND USE: Residential TOTAL BUDGET ITEM DISTRICT Total Additional Funds Required $ 69,552 Available Carryover $ 0 Other Revenue $ 0 Additional To be Raised by Parcel Assessment $ 69,552 Annual Additional $28 Per -Parcel Per Month Assessment (207 Parcels) $ 336 April 13, 1999 City of Santa Clarita 4 IV. ASSESSMENT DIAGRAM The boundary map/diagram is included herein as "Appendix B" is part of this report. V. ASSESSMENT All assessed lots or parcels of real property within the annexation are listed on the Assessment Roll which is on file at the City and is hereby made a part of this report by reference. The assessment roll states the net amount to be assessed upon assessable lands within District No. T31 for Fiscal Year 1999/2000, shows the Fiscal Year 1999/2000 additional assessment upon each lot and parcel within the District, and describes each assessable lot or parcel of land within the District. These lots and parcels are more particularly described in the County Assessment Roll, which is on file in the office of the Los Angeles County Assessor and by reference is made a part of this report as "Appendix A". As previously approved, the amount of the assessments for District No. T31 can include a yearly increase, based upon the Consumer Price Index, All Urban Consumers, for the Los Angeles -Anaheim -Riverside Area ("CPI"), as determined by the United States Department of Labor, Bureau of Labor Statistics, or its successor. The engineer shall compute the percentage difference between the CPI for March of each year and the CPI for the previous March, and shall then adjust the existing assessment by an amount not to exceed such percentage for the following fiscal year. Should the Bureau of Labor Statistics revise such index or discontinue the preparation of such index, the engineer shall use the revised index or a comparable system as approved by the City Council for determining fluctuations in the cost of living. VI. METHOD OF ASSESSMENT BACKGROUND The Landscaping and Lighting Act of 1972 provides that assessments may be apportioned upon all assessable lots or parcels of land within an assessment district in proportion to the estimated benefits to be received by each lot or parcel from the improvements. In addition, Proposition 218 requires that a parcel's assessment may not exceed the reasonable cost of the proportional special benefit conferred on that parcel. The Proposition provides that only special benefits are assessable, and the City must separate the general benefits from the special benefits conferred on a parcel. A special benefit is a particular and distinct benefit over and above general benefits conferred on the public at large, including real property within the district. The general enhancement of property value does not constitute a special benefit. April 13, 1999 City of Santa Clarita 5 SPECIAL BENEFIT In the existing District the landscape improvements were installed by the developers, subdividers of the land, and the continued maintenance was guaranteed through the establishment of a Landscape Maintenance District. If the installation of the improvements and the guaranteed maintenance did not occur, the lots would not have been established and could not have been sold to any distinct and separate owner. The establishment of each distinct and separate lot is a special benefit which permits the construction of a building or structure on the property and the ownership and sale of the distinct lot in perpetuity. All the lots are established at the same time once the conditions regarding the improvements and the continued maintenance are guaranteed. As a result, each lot within the District receives a special and distinct benefit from the improvements and to the same degree. The area outside of, and surrounding the residential structures are landscaped medians which are owned in common by all the owners of the residential structures. These common areas have landscaping improvements that are maintained by the District. Since these improvements are for the benefit of the owners and they also benefit from the maintenance of these improvements, only the owners of property within the district are assessed for this benefit and its costs. In addition, the improvements continue to confer a particular and distinct special benefit upon parcels within the District because of the nature of the improvements. The proper maintenance of landscaping and appurtenant facilities specially benefit parcels within the District by moderating temperatures, and providing oxygenation thereby enhancing the environmental quality of the parcels and making them more desirable. The spraying and treating of landscaping for disease reduces the likelihood of insect infestation and other diseases spreading to landscaping located throughout the properties within the District. The proper maintenance of the landscaping, ornamental structures, and appurtenant facilities reduces property -related crimes (especially vandalism) against properties in the District. The landscaping located in Landscape Maintenance District No. T31 helps to visually join the various segments of the community, which will enhance the property within the development. Finally, the proper maintenance of landscaping and ornamental structures improves the attractiveness of the properties within the District and provides a positive visual experience each and every time a trip is made to or from the property. All of the above-mentioned contributes to a specific enhancement of the property values of each of the parcels within the District. GENERAL BENEFIT In addition to the special benefits received by the parcels within the District, there are incidental general benefits conferred by the proposed improvements. The proper maintenance of landscaping and appurtenant facilities within the District will April 13, 1999 City of Santa Clarita 6 not only control dust from blowing onto properties within the District, but will also control dust from blowing onto properties outside of the District. The spraying and treating of landscaping within the District for disease reduces the likelihood of insect infestation and other diseases spreading to landscaping located throughout other properties within the City. Finally, the proper maintenance of landscaping and ornamental structures provides a positive visual experience to persons passing by the District. All of the above-mentioned constitutes incidental general benefits conferred by the improvements. The total benefits are thus a combination of the special benefits to the parcels within the District and the general benefits to the public at large and to adjacent property owners. The portion of the total landscape maintenance costs which are associated with general benefits will not be assessed to the parcels in the District, but will be paid from other City Funds. Because the landscaping is located immediately adjacent to properties within the District, and is maintained solely for the benefit of the properties within the District, any benefit received by properties outside of the District is merely incidental. It is estimated that the general benefit portion of the benefit received from the improvements for the District is less than one (1) percent of the total benefit. Nonetheless, the City has agreed to ensure that no property is assessed in excess of the reasonable cost of the proportional special benefit conferred on that property. APPORTIONMENT In this District, all the parcels in the District receive the same special benefit from the improvements due to their use and their similar proximity to the improvements. Therefore, each parcel is assessed an equal amount. April 13, 1999 City of Santa Clarita VII. CERTIFICATIONS FINAL APPROVAL Final approval by the City Council of the City of Santa Clarita on the _ day of , 1999. Sharon L. Dawson, City Clerk City of Santa Clarita I, Richard L. Kopecky, Willdan Associates, Engineer of Work for the City of Santa Clarita, do hereby certify that the foregoing assessments, together with the boundary maps attached thereto, are true and correct. Richard L. Kopecky, RCE 16742 Engineer of Work Submitted by: Richard L. Kopecky, RCE 16742 Assessment Engineer April 13, 1999 City of Santa Clarita "APPENDIX A" ASSESSMENT ROLL LANDSCAPE MAINTENANCE DISTRICT NO. T31 The assessment roll for the Landscape Maintenance District is hereby incorporated and made a part of this report. The Assessment Rolls are on file at the City where they are available for public inspection. Reference is made to the Los Angeles County Assessment Roll for a description of the lots or parcels in each of the Assessment Districts. 2803-023-053, 054, 055, 056 059 through 067 070 through 109 2803-040-013 through 025 027 through 033 April 13, 1999 City of Santa Clarita 9 Additional Additional FY 99/2000 FY 99/2000 District Assessor District Parcel Number Parcel No. Assessment Assessment LMD -T31 2803-039-001, 016, 018, 019 $69,552 $336.00 024 through 061 065 through 156 2803-023-053, 054, 055, 056 059 through 067 070 through 109 2803-040-013 through 025 027 through 033 April 13, 1999 City of Santa Clarita 9 s i EXHIEIT A Zone T-31 MAP -- SHANGRI-LA and OUTLOO 2 _�il�ll�