For City Council Meeting [June 9, 2020]
TO: Honorable City Council
APPROVAL: Rod Foster, City Manager
FROM: Stephen Erlandson, Deputy City Manager
Title
Request City Council to Adopt: (1) Resolution No. 7617, Resolution No. 7618, and Resolution No. 7619 Related to Street Light Maintenance District No.1; (2) Resolution No. 7620, Resolution No. 7621, and Resolution No. 7622 for Landscape Maintenance District No. 1 and Landscaping and Lighting Maintenance District No. 2 and; (3) Resolution No. 7623, Resolution No. 7624, and Resolution No. 7625, Setting a Public Hearing for July 14, 2020, to Consider the Levy and Collection of Assessments Therein.
Body
BACKGROUND
The Landscaping and Lighting Act of 1972, (the “Act”), beginning with Section 22500 of the California Streets and Highways Code, requires the City Council to order the preparation of an Engineer’s Report each year which details the levying of special assessments for the three separate Special Districts established within the City of Rialto (the “City”).
Street Light Maintenance District No. 1 (SLD 1):
The City established SLD 1 throughout the entire City to fund the operation of the City’s streetlight system consisting of over 3,750 streetlights, and to fund costs for tree trimming and maintenance. Proposition 218 limits the special assessments levied in SLD 1 to the historic maximum special assessment prior to November 1996.
Landscape Maintenance District No. 1 (LMD 1):
In 1977, Rialto established LMD 1 to fund the maintenance of exterior parkway and median irrigation and landscaping adjacent to and associated with private land development. LMD 1 consists of over 100 separate areas throughout the City, annexed upon development of various properties. Within LMD 1, the City maintains 1,000,000 square feet of turf and 3,700 trees within a total area of 61 acres. Proposition 218 limits the special assessments levied in LMD 1 to the historic maximum special assessment prior to November 1996.
Landscaping and Lighting Maintenance District No. 2 (LLMD 2):
The Landscaping and Lighting Act of 1972, (the Act), beginning with Section 22500 of the California Streets and Highways Code, authorizes the City Council to establish Special Districts to pay for the costs to operate and maintain public improvements that benefit private properties. In January 2005, the City Council established Rialto Landscaping and Lighting Maintenance District No. 2 (LLMD 2) to fund the operation of new streetlights added to the City’s streetlight system, and to fund the maintenance of exterior parkway and median irrigation and landscaping adjacent to and associated with private land development. LLMD 2 consists of sixty-seven (67) separate areas throughout the City, annexed upon various developments approved after 2005. Within LLMD 2, the City currently maintains a total of over 23.93 acres of landscaped area and 177 streetlights.
All new developments within the City must annex to LLMD 2. The City may adjust LLMD 2 assessments in accordance with the Consumer Price Index (CPI). Annexation into LLMD 2 is a condition of approval for all new development projects required to provide exterior landscaped parkways or medians, and/or required to install new streetlights. The special assessments in LLMD 2 are not limited to any historic maximum special assessment, and pursuant to Proposition 218, the maximum assessment may increase pursuant to the CPI.
The Act allows the City to establish Special Districts to absorb the costs of installation and maintenance of various improvements that provide special benefits to properties within its area of influence. Proposition 218 requires that property owners ratify increases in special assessments related to SLD 1. The maximum special assessment within SLD 1 for a typical residential parcel is approximately $26; the maximum special assessment within LMD 1 for a typical residential parcel is approximately $58. For residential parcels in both SLD 1 and LMD 1, the total maximum special assessment is limited to approximately $84.
ANALYSIS/DISCUSSION
The City must approve various Resolutions to initiate the process for levying special assessments to collect funds for maintenance of improvements within SLD 1, LMD 1, and LLMD 2. The method for calculating the special assessments for these Districts remains unchanged from last year. Formulas apply the special assessments to the properties in the City based on the benefit of having streetlights and/or landscaping (as the case may be), and other District services within the City. Engineer’s Reports for SLD 1, LMD 1, and LLMD 2 have been prepared pursuant to requirements of the Act, and the projected revenues and expenditures have been estimated for these Districts in Fiscal Year 2020/2021.
Street Light Maintenance District No. 1 (SLD 1):
Assessments on parcels are dependent upon their classification as residential or commercial, and whether vacant or developed. Residential properties include single-family units, multiple family units (condominiums and apartment complexes) and mobile home parks. For residential, a Land Benefit Factor of $8.18 per acre applies, with a minimum assessment of $2.05; and a Development Factor of $24.03 applies to each residential parcel. The maximum special assessment for a typical residential parcel is $26.08 and cannot be increased without voter approval.
Non-residential properties include commercial, professional, office and industrial uses, and the City applies an assessment formula similar to residential properties. A Land Benefit Factor of $8.18 per acre applies, with a minimum assessment of $4.09; and a Development Factor of $52.09 per acre applies. The maximum special assessment for a typical commercial parcel is $56.18 and the City cannot increase it unless approved by a majority vote of members within the district. The Preliminary Engineer’s Report for SLD 1 is attached as Attachment 1.
Landscape Maintenance District No. 1 (LMD 1):
The City assesses parcels based upon three established Zones of Benefit:
Zone 1 includes residential parcels that benefit from parkway/median landscaping that do not include trees. The City established the maximum special assessment in 1993 at $58 per Equivalent Benefit Unit (EBU). A single-family residential parcel is 1 EBU, and Zone 1 of LMD 1 contains 1,802.40 EBUs.
Zone 2 includes residential parcels that benefit from parkway/median landscaping that include trees. The City established the maximum special assessment in 1993 at $58 per EBU. A single-family residential parcel is 1 EBU, and Zone 2 of LMD 1 contains 6,391.30 EBUs.
Zone 3 includes multi-family residential or non-residential (commercial/industrial) parcels that benefit from parkway/median landscaping (with or without trees). The formula determines a parcel’s EBU by allocating costs to each parcel on a per-parcel apportionment, utilizing the best representation of each parcel’s benefit compared to other parcels. The maximum special assessment varies from $2.58 per EBU to $2,666.67 per EBU, dependent upon the individual annexation area. Zone 3 of LMD 1 contains 2,934.52 EBUs. The Preliminary Engineer’s Report for LMD 1 is attached as Attachment 2.
Landscaping and Lighting Maintenance District No. 2 (LLMD 2):
The City assesses parcels based upon three established Zones of Benefit:
Zone 1 includes residential parcels that benefit from parkway/median landscaping and street lighting. The maximum special assessment may be increased annually by the CPI, and the Preliminary Engineer’s Report proposes a new maximum special assessment of $414.56 per EBU for Fiscal Year 2020/2021. A single-family residential parcel is 1 EBU, and Zone 1 of LLMD 2 contains 503 EBUs.
Zone 2 includes non-residential (commercial/industrial) parcels that benefit from parkway/median landscaping and street lighting. The maximum special assessment may be increased annually by the CPI and is proposed to be established at $0.68 per EBU for Fiscal Year 2020/2021. The EBU calculated for each parcel is calculated by dividing the total square footage of the landscaped area associated with the parcel by the total acreage of all properties associated with that landscaped area to establish a base value of benefit (square foot per acre). Zone 2 of LLMD 2 contains 856,176.19 EBUs.
Zone 3 is currently limited to the residential parcels within Rialto Heights (Tract 16708), that receive benefit from the perimeter landscaped slope between Rialto Heights and Frisbee Park. The maximum special assessment may be increased annually by the CPI and is proposed to be established at $637.32 per EBU for Fiscal Year 2020/2021. A single-family residential parcel is 1 EBU, and Zone 3 of LLMD 2 contains 20 EBUs.
Zone 4 includes developments and parcels that are generally considered non-residential properties (commercial, industrial, institutional facilities, office buildings, etc.). The maximum special assessment may be increased annually by the CPI and is proposed to be established at $54.15 per EBU for Fiscal Year 2020/2021. Zone 4 of LLMD 2 contains 48.26 EBUs.
Zone 5 includes parcels within multi-family residential developments (where individual parcels have two or more residential units) and/or residential condominium/townhome subdivisions (where each residential unit is assigned its own Assessor’s Parcel Number). Zone 05 currently includes the parcels within the Bloomington Lane residential condominium subdivision (Tract 17921) and parcels located on the west side of Riverside Avenue approximately 450 feet south of Bloomington Avenue within the R-3 (Multi-Family Residential) zone. The maximum special assessment may be increased annually by the CPI and is proposed to be established at $0.68 per EBU for Fiscal Year 2020/2021. Zone 5 of LLMD 2 contains 16,727.98 EBUs.
Zone 6 includes parcels within residential subdivisions that receive special benefit from and are being assessed for street lighting only. The maximum special assessment may be increased annually by the CPI and is proposed to be established at $76.43 per EBU for Fiscal Year 2020/2021. Zone 6 of LLMD 2 contains 34.75 EBUs. The Preliminary Engineer’s Report for LLMD 2 is attached as Attachment 3.
To levy assessments for SLD 1, LMD 1, and LLMD 2, the City Council must make certain findings and adopt various Resolutions related to the Special Districts and set a Public Hearing for July 14, 2020. At the Public Hearing on July 14, 2020, property owners will have an opportunity to comment on the continued operation and maintenance of improvements within SLD 1, LMD 1, and LLMD 2. Based on the public testimony, the City Council will consider approving the Engineer’s Reports, to approve the continued operation of SLD 1, LMD 1, and LLMD 2 for Fiscal Year 2020/2021, and to order the levying and collection of assessments.
The City Clerk will publish notices for the Public Hearing to be held on July 14, 2020, as required by Sections 22552 and 22553 of the California Streets and Highways Code.
ENVIRONMENTAL IMPACT
Pursuant to Section 15378(a), a “Project” means the whole of an action, which has a potential for resulting in either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment. According to Section 15378(b), a Project does not include: (5) Organizational or administrative activities of governments that will not result in direct or indirect physical changes in the environment.
GENERAL PLAN CONSISTENCY
Approval of this action complies with the City of Rialto General Plan Goals and related Policies:
Goal 2-8: Preserve and improve established residential neighborhoods in Rialto.
Goal 2-10: Create distinctive gateways at all entry points into Rialto and for individual districts or neighborhoods.
Goal 2-12: Design new streets to be pedestrian friendly.
Goal 2-13: Achieve quality aesthetic design of all signage in the City of Rialto.
Goal 2-17: Provide high-quality and environmentally sustainable landscaping.
Goal 2-19: Encourage neighborhood preservation, stabilization, and property maintenance.
Goal 2-21: Ensure high-quality planned developments in Rialto.
Goal 2-22: Promote commercial and/or industrial development that is well designed, people-oriented, environmentally sustainable, sensitive to the needs of the visitor or resident, and functionally efficient for its purpose.
LEGAL REVIEW
The City Attorney has reviewed and approved the staff report, resolutions, and preliminary Engineer’s Reports.
FINANCIAL IMPACT
Operating Budget Impact:
There is no impact in setting the Public Hearing. A full financial report will be presented on July 14, 2020.
Capital Improvement Budget Impact:
There is no impact to the Capital Improvement Budget.
Licensing:
A Business license application and payment of a Business License tax is not required.
RECOMMENDATION
Staff recommends that the City Council:
• Adopt Resolutions ordering the preparation of Engineer’s Reports for Street Light Maintenance District No. 1, Landscape Maintenance District No. 1, and Landscaping and Lighting Maintenance District No. 2.
• Adopt Resolutions giving preliminary approval of the Engineer’s Reports for Street Light Maintenance District No. 1, Landscape Maintenance District No. 1, and Landscaping and Lighting Maintenance District No. 2, and the levy and collection of annual assessments related thereto for Fiscal Year 2020/2021.
• Adopt Resolutions declaring the City Council’s intention to conduct a Public Hearing on July 14, 2020, on Street Light Maintenance District No. 1, Landscape Maintenance District No. 1, and Landscaping and Lighting Maintenance District No. 2, and to levy and collect annual assessments related thereto for Fiscal Year 2020/2021.