For City Council Meeting [September 24,2019]
TO: Honorable Mayor and City Council
APPROVAL: Rod Foster, City Administrator
FROM: Sean Grayson, Acting Public Works Director
Title
Request City Council to Set a Public Hearing for November 12, 2019 to Conduct a Property Owner Protest Ballot Proceeding; Adopt Resolution No.7560 Initiating the Proceedings for the Annexation of Properties to the Rialto Landscaping and Lighting District No. 2 and to Levy and Authorize Collection of Assessments Commencing with Fiscal Year 2020/2021; and to Adopt Resolution No.7561 Declaring the Intention to Annex Properties to the Rialto Landscaping and Lighting District No. 2 and Conduct a Property Owner Protest Ballot Proceeding On The Matter of the New Assessments Related Thereto Commencing with Fiscal Year 2020/2021.
Body
BACKGROUND:
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 a special district 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 costs for the operation of new street lights added to the City’s street light system, and to fund costs for the maintenance of exterior parkway and median irrigation and landscaping adjacent to and associated with private land development.
The City established LLMD 2 to annex the public landscaping and lighting related to all new developments within the City. In contrast with LLMD 1, the City may annually adjust the special assessments for inflation, using the Consumer Price Index (“CPI”). The City conditions new development to annex into LLMD 2 to fund maintenance of exterior landscaped parkways or medians, or new street lights. Proposition 218 allows the special assessments levied under LLMD 2 to increase commensurate with the CPI without a vote by the payees.
ANALYSIS/DISCUSSION:
The City approves land development projects with conditions to construct parkway and/or median landscaping, and to install City street lights. Developers must annex into LLMD 2 as a condition of the City’s acceptance of any publicly maintained landscaping or street lighting.
The proposed annexation includes the projects identified below and in the Engineer’s Report included as Attachment 1. Additionally, a vicinity map showing past annexations and proposed annexations has been included as Attachment 2:
Non-Residential Annexations
PPD 2017-0100 (Kline Ranch): This development consists of an 86,447 square foot warehouse building and associated paving, lighting, fencing, and landscaping on approximately 5.25 acres of land located at the northwest corner of Riverside Avenue and Kline Ranch Road within the Heavy Industrial (H-IND) zone of the Agua Mansa Specific Plan. This development is being annexed to the District as part of Zone 2 for Fiscal Year 2020/2021 to provide funding for street lighting and landscaping associated with the development.
PPD 2018-0059 (Ayres Hotel): This development consists of a four-story hotel with 135 rooms, which also includes a lobby, fitness room, two (2) conference rooms, a restaurant and bar, an outdoor pool, and patio. This project is located on approximately 2.823 acres within the planning Area 103 (Town Center) of the Amended Renaissance Specific Plan. This development is being annexed to the District as part of Zone 2 for Fiscal Year 2020/2021 to provide funding for street lighting and landscaping associated with the development.
PPD 2018-0069 (Thrifty Oil): This development consists of a 66,976 square foot warehouse building and associated paving, drainage, lighting, fencing, and landscaping on 4.32 gross acres of land located on the east side of Ayala Drive approximately 650 feet north of Base Line Road within the Employment (EMP) zone of the Renaissance Specific Plan. This development is being annexed to the District as part of Zone 2 for Fiscal Year 2020/2021 to provide funding for street lighting and landscaping associated with the development.
PPD 2018-0078 (Baseline and Tamarind): This development consists of a 156,500 square foot industrial warehouse building and associated paving, drainage, lighting, fencing and landscaping on 9.20 gross acres of land located at the northwest corner of Baseline Road and Tamarind Avenue within the Employment (EMP) zone of the Renaissance Specific Plan. This development is being annexed to the District as part of Zone 2 for Fiscal Year 2020/2021 to provide funding for street lighting and landscaping associated with the development.
The City proposes to annex these areas into LLMD 2 to fund, in whole or in part, the expenses required to service and maintain the improvements that provide special benefits to those parcels.
The City previously engaged Willdan Financial Services as the City’s Assessment Engineer to prepare an Engineer’s Report identifying the properties for annexation into LLMD 2, and levying the special assessments against those properties beginning July 1, 2020. In order to establish an appropriate special benefit connection between the improvements, services provided and the benefits to specific properties, the City has established Zones of benefit within LLMD 2. Based on the various improvements, services and the type of property, the Engineer’s Report assigns each property to a Zone. The Engineer’s Report then allocates to all properties the net annual costs to provide services to each Zone within LLMD 2 using a weighted method to ensure that each property receives a reasonable assessment for the special benefits it receives.
The California Constitution requires a protest ballot proceeding prior to the proposed levy of new assessments as described in the Engineer’s Report, with a minimum 45-day notice of a public hearing prior to the City Council’s consideration of the annexation. If the City Council initiates the annexation process, Willdan Financial Services (on behalf of the City Clerk) will mail public notices and official ballots to the property owner of record for the property annexed into LLMD 2. The proposed Resolution declaring the City Council’s intention to annex such property into LLMD 2 orders the Public Hearing to be scheduled for November 12, 2019 to consider public testimony on the new special assessments. Once the City Council closes the Public Hearing, the City Clerk will open and tabulate the protest ballots received to determine whether a majority protest exists.
If a majority protest does not exist, the City Council may approve the Engineer’s Report, approve the related assessment diagrams, order the annexation of the various properties, and confirm the assessments as described in the Engineer’s Report. If approved by the City Council, the City will add the assessments to the annual LLMD 2 Engineer’s Report for Fiscal Year 2020/2021, and submit it to the San Bernardino County Auditor/Controller for inclusion on the property tax rolls for each of the affected parcels.
ENVIRONMENTAL IMPACT:
The administrative process to annex properties into a Special District is not a “Project” as defined by the California Environmental Quality Act (CEQA). 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:
This action is consistent with Guiding Principle 3 in the General Plan:
Our City government will lead by example, and will operate in an open, transparent, and responsive manner that meets the needs of the citizens and is a good place to do business.
This action is also consistent with the following goals and policies:
Goal 2-11: Design streetscapes in Rialto to support and enhance the City’s image as a desirable place to live, work, shop, and dine.
Policy 2-11.1: Require the screening of commercial or industrial parking areas, storage yards, stockpiles, and other collections of equipment from the public right-of-way.
Policy 2-11.2: Provide and maintain street trees and parkway landscaping within the public right-of-way for developed properties within Rialto. Require private development to do the same as per City design regulations.
Policy 2-11.4: Incorporate street trees and other landscape treatments along corridors to provide sufficient shade canopy and promote pedestrian comfort.
Policy 2-11.5: Require that projects with perimeter walls (including gated residential communities) provide an interesting streetscape, with pedestrian access to major travel ways.
LEGAL REVIEW:
The City Attorney has reviewed and supports this staff report.
FINANCIAL IMPACT:
Operating Budget Impact:
The initial Maximum Assessment Rate for the proposed annexations will be as follows:
|
Proposed Property |
Type of Development |
Initial (FY 19/20) Maximum Assessment |
|
PPD 2017-0100 (Kline Ranch) |
Non-Residential |
$1,263.24 |
|
PPD 2018-0059 (Ayres Hotel) |
Non-Residential |
$5,140.74 |
|
PPD 2018-0069 (Thrifty Oil) |
Non-Residential |
$1,772.76 |
|
PPD 2018-0078 (Baseline and Tamarind) |
Non-Residential |
$4,189.68 |
The Maximum Assessment Rate will increase by an annual inflationary adjustment based on the annual percentage change in the local Consumer Price Index as reported by the United States Department of Labor, Bureau of Labor Statistics, for the Riverside-San Bernardino-Ontario Area for All Urban Consumers annually beginning Fiscal Year 2020/2021. If the City annexes these areas into LLMD 2, beginning July 1, 2020 the City will levy and collect increased special assessments as outlined in the table above for Fiscal Year 2020/2021. These revenues will be budgeted accordingly in Fiscal Year 2020/2021.
Capital Improvement Budget Impact:
There is no Capital Improvement Budget Impact.
Licensing:
This action does not require a business license application nor payment of a Business License tax or Administration and State fees.
RECOMMENDATION:
Staff recommends that the City Council:
• Set a Public Hearing for November 12, 2019.
• Adopt a Resolution initiating the proceedings for the annexation of properties to the Rialto Landscaping and Lighting District No. 2, and to levy and authorize collection of assessments commencing with Fiscal Year 2020/2021.
• Adopt a Resolution declaring the intention to annex properties to the Rialto Landscaping and Lighting District No. 2 and conduct a property owner protest ballot proceeding on the matter of the new assessments related thereto commencing with Fiscal Year 2020/2021.
• Direct Willdan Financial Services, on behalf of the City Clerk, to mail a public notice and official ballot to all affected property owners, not less than 45 days before the date of the public hearing, in accordance with Section 4 of Article XIIID of the California Constitution.