City Council Agenda Report
TO: Mayor Clauzel and Members of the City Council
FROM: Ken Irwin, City Manager
BY: Mike Willett, Public Works Director
MEETING DATE: March 21, 2023
ITEM NO: 5.5
SUBJECT: Approve Resolution No. 2023-08 Declaring the City Council's Intention to Initiate Proceedings for the Annual Levy of Assessments and Ordering the Preparation of Engineer’s Reports for the Landscape Maintenance Districts (LMDs) and County Service Area (CSA) No. 15) for FY 2023/24.
RECOMMENDATION
Motion to Approve Resolution No. 2023-08 Declaring the City Council's Intention to Initiate Proceedings for the Annual Levy of Assessments and Ordering the Preparation of Engineer’s Reports for the Landscape Maintenance Districts (LMDs) and County Service Area (CSA) No. 15 for FY 2023/24.
BACKGROUND
LMDs and Benefit Assessment Districts (BADs) are special purpose districts established to fund specific maintenance activities. Properties within these districts receive a special benefit from the activities and are assessed an annual levy to fund those activities. The use of LMDs and BADs in Patterson dates back to the late 1980s. Most residential subdivisions built since then are required to establish an LMD and/or BAD.
Specifically, an LMD typically funds the on-going maintenance and repair of park equipment, structures, and landscaping. City street trees and sidewalk maintenance may also be included. A typical BAD funds the operation and maintenance of storm drain inlets, drainage lines, pump stations, and streetlights. A BAD may also fund storm water management activities and limited street maintenance work. Included in the budgets for both LMDs and BADs is a city administrative charge to cover staff time spent preparing and administering the budgets and otherwise managing each district. The typical administrative fee is 15% of the annual operations and maintenance budget.
The attached Resolutions do not cover the BADs since those districts do not require a Resolution Initiating Proceedings. The second Resolution is for County Service Area (CSA) No. 15, which covers the Villa del Lago commercial area. Since that project was initially developed outside the city limits, the maintenance district set-up was a County Service Area (CSA). In 2005, the City annexed the Villa Del Lago commercial area into the City limits and therefore took over the administration of the CSA. This district provides for maintenance of the signal light at Sperry Ave and Rogers Rd, the on-site storm drain basin and some street lighting.
The budget for each district is prepared and included in a document called the “Engineer’s Report”. This report and resolution declares the City's intention to initiate proceedings and direct the preparation of Engineer’s Reports applies to CSA No. 15 (Villa Del Lago) and the following Landscape Maintenance Districts:
LMDs
County Hollow Estates District
Kinshire Estates District
Patterson Estates I, III, IV District
Shirepark Estates District
Walnut Square Estates District
Heartland Ranch Landscape Maintenance District
Heartland Ranch Overlay Landscape Maintenance District
Miraggio Landscape Maintenance District
Sutter Pointe Landscape Maintenance District
Walker Ranch Landscape Maintenance District
Patterson Gardens Landscape Maintenance District
Keystone Pacific Business Park Landscape Maintenance District Keystone Pacific Business Park Landscape Maintenance District Annex No. 1 The next step in the process is for the preparation of the Engineer’s Reports for the LMDs, BADs, and CSA NO. 15. Once completed staff will bring those to Council for review and approval at the Intent Meeting scheduled for Tuesday, May 16, 2023. At that time Council will also establish the date and time for the Public Hearing, which is tentatively scheduled for Tuesday, June 20, 2023.
ANALYSIS
The reason for the assessments is to generate the revenue necessary to operate and maintain the facilities in each district.
FISCAL IMPACT
All costs associated with preparing the Engineer’s Reports, the annual levy and collection of assessments and advertising are charged to the respective Districts. There is no budget impact at this time.