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HomeMy WebLinkAboutSR - LMD-15-1 - FORMATION NEW LANDSCAPE MAINTENACE DISTRICTpP p g�� cb�; C a' AGENDA ITEM Date: March 10, 2015 TO: Honorable Mayor and Members of the City Council THRU: John W. Sibley City Manager FROM: Marie Community Se ces Di t Joe De FrancescAect Public Works Di r R eviewedNe 'fi d By: City Mrnager Financ Dir or To Be P sen : Marie Knight X Cons Calendar _ City Mgr Rpts Council Reports _ Legal Affairs Boards /Cmtes _ Public Hrgs Admin Reports Plan/Environ 1. SUBJECT A Resolution of the City Council of the City of Orange initiating proceedings for the formation of a new landscape maintenance district (LMD 15 -1) to overlay the existing landscape maintenance district (LMD -86 -2) in the Santiago Hills Neighborhood pursuant to provisions of Division 15, Part 2, of the Streets and Highways Code of the State of California, and designating SCI Consulting Group as the Engineer of Work. 2. SUMMARY The Santiago Hills neighborhood has had a Landscape Maintenance District (LMD -86 -2) in place since 1987 to levy assessments that pay for landscape and lighting maintenance of public areas in the neighborhood. The maximum levy rate was frozen in 1996 with passage of Proposition 218, which henceforth required a vote of property owners to increase assessments. In 2007 as District reserves were exhausted, the City held a Proposition 218 ballot proceeding to increase the assessment. That ballot proceeding failed, and the City was forced to reduce levels of maintenance that are now causing significant deterioration in the condition of the landscaping improvements. This Resolution would initiate proceedings for another Proposition 218 ballot proceeding to create a new District that would exactly overlay the original District with the effect of increasing the net assessments on the properties in the Santiago Hills Neighborhoods. 3. RECOMMENDED ACTION Adopt Resolution No. 10853 to initiate proceedings for the formation of a new landscape maintenance district (No. 15 -1) and designate SCI Consulting Group as the Engineer of Work. ITEM a 0 3/10/15 4. FISCAL IMPACT There is no direct fiscal impact of adopting this Resolution. The cost of the work to be performed by SCI Consulting Group has already been appropriated and their contract approved by the City Council on November 24, 2014. Passage of the ballot measure in the future will include additional revenues and commensurate expenditures which will be noted at that time. 5. STRATEGIC PLAN GOAL(S) GOAL 3 A. Refurbish, maintain, develop and/or expand public use places and spaces. 6. GENERAL PLAN IMPLEMENTATION Infrastructure Element Goal 3.0: Ensure adequate maintenance of public rights -of -way to enhance public safety and improve circulation. Policy 3.2: Provide sufficient levels of street sweeping, landscaping, graffiti abatement, shopping cart and bulk item removal from streets, sidewalks, alleys, and other public rights -of -way. 7. DISCUSSION and BACKGROUND Background In 1987, Landscape Maintenance District 86 -2 (District) was established to maintain the landscape improvements constructed by Assessment District 86 -1 in Santiago Hills. The District comprises over 32 acres of landscape, lighting, and other infrastructure maintained by the City. Funds supporting the maintenance of the District landscape and other infrastructure are derived from an annual assessment of property owners within the District. This assessment has not increased since the formation of the District in 1987. In 1996, when Proposition 218 was passed henceforth requiring a property owner ballot proceeding to increase any assessment, the annual assessments were, in effect, frozen at the then - maximum rate of $369.44 for a typical single - family home. By 2007, with District reserves depleted and expenditures far outpacing the revenues, the City conducted a Proposition 218 Ballot Proceeding to raise the assessment in order to cover costs. At that time, the proposed annual assessment to fully fund the level of landscaping services was $432.52 for a single - family detached unit. The ballot proceeding was unsuccessful, with 70% of the votes cast not in favor, and the increased assessment was not imposed. Without an increase in revenues, staff has had to make significant reductions to the service levels in the District as costs for maintenance contracts, utilities and repairs continued to rise. Recently, the impact of these service reductions have been clearly noted by many residents, who have ITEM 3/10/15 indicated that further reductions in service levels and watering would be unacceptable. Combined with the need for replacement of aging infrastructure and landscape material that has outlived its useful life, and expensive repairs made necessary by vandalism, an increase of the maximum allowable assessment was deemed essential. In the Fall of 2014, staff issued a request for proposals for the services of an assessment engineer to assist the City on a new Proposition 218 Ballot Proceeding. That effort concluded when the Council awarded a contract to SCI Consulting Group in November. SCI's scope of work included a public opinion survey, which has recently been concluded and presented to the City Council. SCI's scope also includes the preparation of the Engineer's Report as well as the ballot proceeding work. Discussion The results of the public opinion survey provided useful information on the priorities of the Santiago Hills neighborhood. There is often a "price sensitivity" in issues like this, but the survey reveals that there is also a strong sensitivity to service levels in this neighborhood that appears to offset any price sensitivity. In summary, the residents appear to desire an increase in services levels accompanied by a strong capital improvement program that invests in the landscape infrastructure so that future maintenance and utility costs are optimized. Staff has worked to develop maintenance and service plans along with a capital improvement program to meet the objectives and priorities of the neighborhood. This work will be incorporated into the Engineer's Report as the process moves forward. Should the City Council wish to move forward with the ballot proceeding, the formation process is outlined in law and cannot be abbreviated. The major steps include the following (with tentative dates): 1. Resolution initiating process to form a new district, and designate the Engineer of Work and direct them to prepare a preliminary Engineer's Report and supporting documents (March 10, 2015) 2. Resolutions approving the Preliminary Engineer's Report, calling for mailing of ballots, and adopting the Proposition 218 ballot procedures (April 14, 2015) 3. Mail Ballots to property owners (April 23, 2015) 4. After a 45 -day balloting period, hold a public hearing, close balloting period, and begin tabulating the ballots (June 9, 2015) 5. If successful, order levy of assessments (July 14, 2015) 6. Submit levies to County (No later than August 10, 2015) The Proposition 218 balloting process itself is unique. For a benefit assessment such as this, each property owner of record must be mailed a notice and a ballot to mark and mail back. The ballots are required to be out at least 45 days, and the outcome is determined only from the ballots returned (not the total number of properties). Each ballot will show the exact amount of that property's 3 ITEM 3/10/15 assessment. The votes (for and against) are weighted by the amount of the assessment. For instance, if property owner "A" votes Yes on a ballot for a $50 assessment, and property owner "B" votes No on a ballot for a $150 assessment, the larger No vote counts three times as much as the smaller Yes vote. Tabulation of the ballots will be conducted under the supervision and direction of the City Clerk. A simple majority of more than 50% of the returned ballots is required for the ballot measure to pass and the new assessment to be levied. Based on the neighborhood priorities, the planning and budgeting done by staff, and the legal requirements for establishing a new assessment district, it is recommended that the Council adopt Resolution No. 10853 to initiate the Proposition 218 Ballot proceeding. 8. ATTACHMENTS Resolution No. 10853 4 ITEM 3/10/15 RESOLUTION NO. 10853 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ORANGE INITIATING PROCEEDINGS FOR THE FORMATION OF A NEW LANDSCAPE MAINTENANCE DISTRICT (No. 15 -1) TO OVERLAY AN EXISTING LANDSCAPE MAINTENANCE DISTRICT (LMD 86 -2) IN THE SANTIAGO HILLS NEIGHBORHOOD PURSUANT TO DIVISION 15, PART 2, OF THE STREETS AND HIGHWAYS CODE OF THE STATE OF CALIFORNIA, AND DESIGNATING SCI CONSULTING GROUP AS THE ENGINEER OF WORK THE CITY COUNCIL OF THE CITY OF ORANGE HEREBY FINDS, DETERMINES, RESOLVES, AND ORDERS AS FOLLOWS: The City Council hereby proposes the formation of a new landscaping and lighting district to overlay the existing Landscape Maintenance District (LMD 86 -2) pursuant to the Landscaping and Lighting Act of 1972 (Part 2 of Division 15 of the California Streets and Highways Code (commencing with Section 22500 thereof) ( "the Act "); and 2. The purpose of the landscaping and lighting district shall be to install, maintain and service those improvements described in Section 4 below; and The new landscaping and lighting district proposed in this Resolution is hereby given the distinctive designation of Landscape Maintenance District No 15 -1 (the "Assessment District "), which proposed landscaping and lighting district is primarily described as all of the lands within the current boundaries of Landscape Maintenance District No 86 -2; and 4. It is proposed the Assessment District undertake the following improvements: installation, maintenance and servicing of public areas and public facilities, including but not limited to, landscaping, sprinkler systems, landscape corridors, ground cover, shrubs and trees, street frontages, concrete walkways and stairs, drainage systems, lighting, entry monuments, graffiti removal and repainting, and labor, materials, supplies, utilities and equipment, as applicable, for property owned and /or maintained by the City. Installation means the construction of landscape improvements, including, but not limited to, land preparation, such as grading, leveling, cutting and filling, sod, landscaping, irrigation systems, sidewalks and drainage, and lights. Maintenance means the furnishing of services and materials for the ordinary and usual maintenance, operation and servicing of said improvements, including (a) repair, removal, or replacement of all or part of any improvement; (b) providing for the life, growth, health and beauty of landscaping, including cultivation, irrigation, trimming, spraying, fertilizing, or treating for disease or injury; (c) the removal of trimmings,