For City Council Meeting [November 14, 2017]
TO: Honorable Mayor and City Council
APPROVAL: Michael E. Story, City Administrator
FROM: Robert G. Eisenbeisz, P.E., Public Works Director/City Engineer
Title
Request City Council to Set a Public Hearing for January 9, 2018, to Conduct a Property Owner Protest Ballot Proceeding; Adopt Resolution No. 7222 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 2018/2019; and to Adopt Resolution No. 7223 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 2018/2019.
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 2402 (Azure - Route 66 Plaza): This development consists of a Congregate Care Residential Community facility consisting of a 49,629 square-foot structure, a 105,537 square-foot structure, a 62,932 square-foot structure, a 14,835 square-foot Urgent Care/Surgery/Medical Center structure, an 8,967 square-foot Amenities/Activities building, and a 3,974 square foot restaurant. The project is located on the north side of Foothill Boulevard approximately 200 feet east of Acacia Avenue within the Residential-Mixed Use (R-MU) zone of the Foothill Boulevard Specific Plan. The City will annex this development to the District as part of Zone 2 for fiscal year 2018/19 to provide funding for street lighting and landscaping associated with the development.
PPD 2428 (Renaissance Marketplace): This development consists of a 505,000 square foot retail/entertainment/lifestyle center within Planning Area 108 - Business Center zone of the Renaissance Specific Plan located alongside Linden Avenue, Renaissance Parkway, and Ayala Drive. The City will annex this development to the District as part of Zone 2 for fiscal year 2018/19 to provide funding for street lighting and landscaping associated with the development.
PPD 2453 (Proficiency Building): This development consists of one 210,628 square foot warehouse building, one 77,047 square foot warehouse building, and one 53,040 square foot warehouse building on 18.20 gross acres of land located at the southeast corner of Renaissance Parkway and Palmetto Avenue within the Business Center (BC) zone of the Renaissance Specific Plan. The City will annex this development to the District as part of Zone 2 for fiscal year 2018/19 to provide funding for street lighting and landscaping associated with the development.
PPD 2460 (Alder Warehouse): This development consists of a 426,302 square foot warehouse on 18.3 net acres of land located at the northeast corner of Alder Avenue and Walnut Avenue within the Employment (EMP) and Business Center (BC) zones of the Renaissance Specific Plan referred to as I-210 Logistics Center IV. The City will annex this development to the District as part of Zone 2 for Fiscal Year 2018/19 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, 2018. 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 January 9, 2018, 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 2018/19, 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 approved the staff report, resolutions and Engineer’s Report.
FINANCIAL IMPACT:
The initial Maximum Assessment Rate proposed for the proposed annexations will be as follows or less:
|
Proposed Property |
Type of Development |
Initial (FY 17/18) Maximum Assessment |
|
PPD 2402 (Azure - Route 66 Plaza) |
Non-Residential |
$2,168.44 |
|
PPD 2428 (Renaissance Marketplace) |
Non-Residential |
$42,855.75 |
|
PPD 2453 (Proficiency Building) |
Non-Residential |
$19,827.23 |
|
PPD 2460 (Alder Warehouse) |
Non-Residential |
$30,924.38 |
If the City annexes these areas into LLMD 2, beginning July 1, 2018, the City will levy and collect increased special assessments as outlined in the table above for fiscal year 2018/2019. These revenues will be budgeted accordingly in fiscal year 2018/2019.
RECOMMENDATIONS:
Staff recommends that the City Council:
• Set a Public Hearing for January 9, 2018.
• Adopt the 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 2018/19.
• Adopt the 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 2018/19.
• 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.