CITY OF POMONA
COUNCIL REPORT
June 6, 2022
To: Honorable Mayor and Members of the City Council
From: James Makshanoff, City Manager
Submitted By: Rene Guerrero, Public Works Director
SUBJECT: Approval of the Engineer’s Report and Adoption of a Resolution of Intent Setting July 18, 2022 as the Public Hearing Date Regarding Annexation of Additional Territory and the Levy of Annual Assessments RECOMMENDATION:
It is recommended that the City Council take the following actions:
Approve the Engineer’s Report for the Consolidated Citywide Street Lighting and Landscaping Maintenance District for FY 2022-23, including annexation of 60 additional parcels and the annual levy of assessments; and Adopt the following Resolution:
RESOLUTION NO. 2022-101 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF POMONA, CALIFORNIA, TO ANNEX NEW TERRITORY AND LEVY FISCAL YEAR 2022-23 ASSESSMENTS FOR THE CONSOLIDATED CITYWIDE STREET LIGHTING AND LANDSCAPING MAINTENANCE DISTRICT AND SETTING JULY 18, 2022 AS THE DATE FOR THE PUBLIC HEARING ON THE MATTER EXECUTIVE SUMMARY: Adoption of Resolution No. 2022-101 (Attachment No. 1) will approve the Engineer’s Report (Attachment No. 2) for the Consolidated Citywide Street Lighting and Landscaping Maintenance District and will set the Public Hearing date for the matter on July 18, 2022. These are the next steps required for the levy of assessments for FY 2022-23 and annexation of additional territory, as set forth in the Landscaping and Street Light Act of 1972. The City Council will be asked to approve the collection of FY 2022-23 assessments after the public hearing July 18, 2022. Approval will allow the City to comply with the County Assessor’s August 2022 submittal deadline to ensure the amount is included on the tax bills for FY 2022-23.
FISCAL IMPACT: Funding for the Consolidated Citywide Street Lighting and Landscaping Maintenance District (District) is derived from assessments to properties receiving benefits from the District. In the proposed budget, adopted prior to the draft Engineer’s Report, the City conservatively estimated that the assessments will generate approximately $1,235,441 for FY 2022-23. The draft engineer’s report estimates a total levy of $1,268,071 from a total of 7,688 parcels levied plus additional annual revenue of $922.20 in Zone C from the 60 parcels being added to the Citywide lighting assessment through this process. The table below summarizes estimated revenues from the assessments as described in the Engineer’s Report:
Source of Funds
Phillips Ranch Zone A-B
Zones C and I
Total Zones D-F
University Corp. Center Zone H
Total
Assessment Revenue
$951,944
$138,819
$114,470
$62,838
$1,268,071
Notes
Since FY 1999-00, all parcels formerly in Zone G have now been included in Zone C.
The table below summarizes the estimated expenditures from the assessments. Appropriations for these are included in the FY 2022-23 Proposed Operating Budget. Where expenditures exceed revenues, fund balances will cover the shortfalls. It should be noted that in the Phillips Ranch Zone A-B, the fund balance is expected to be depleted in FY 2022-23. The City has hired a consultant to begin the process of a Proposition 218 protest hearing to increase the assessment in Phillips Ranch to a sustainable level so that services do not have to be decreased further, and the General Fund or other funding sources do not have to make up the shortfall. A vote to increase the assessment is expected to take place in Spring of 2023.
Uses of Funds
Phillips Ranch Zone A-B
Zones C and I
South Garey Zones D-F
University Corp. Center Zone H
Total
Personnel Costs
$172,662
$36,512
$29,764
$37,560
$276,498
Contractual Services
$699,316
$2,000
$25,708
$37,632
$764,656
Utilities
$424,712
$80,000
$46,785
$25,760
$577,257
Internal Services
$26,493
$555
$555
$694
$28,297
Other Operating Costs
$39,165
$10,550
$880
$5,300
$55,895
Total
$1,362,348
$129,617
$103,692
$106,946
$1,702,603
In Phillips Ranch Zone A-B, the City’s General Fund contributes $51,504 annually to maintain the parks in this District.
PUBLIC NOTICING REQUIREMENTS: In accordance with Sections 22552 and 22553 of the California Streets and Highways Code and California Government Code Section 6601, the City is required to post the Resolution of Intent on an official bulletin board known for posting notices and publish the Resolution of Intent in the newspaper at least 10 days prior to the date of a scheduled Public Hearing, currently set for July 18, 2022 at 7:00 p.m. The Preliminary Engineer’s Report will be on file for public review in the Office of the City Clerk. There is no public notice requirement for the present action.
PREVIOUS RELATED ACTION: On April 18, 2022, the City Council adopted Resolution No. 2022-63 authorizing David Taussig and Associates, Inc. (DTA) as the Engineer of Record for Fiscal Year 2022-23, and authorizing the preparation of the Engineer’s Report pursuant to the Provisions of Division 15, Part 2 of the Streets and Highways Code of the State of California, for the Annual Assessment Levy for the Consolidated Citywide Street Lighting and Landscaping Maintenance District for FY 2022-23.
DISCUSSION: The City’s first Street Lighting and Landscaping Assessment District was established over 35 years ago. In July 1990, the City established a Consolidated Citywide District with six benefit/improvement zones (Zones A through F). In subsequent years, as new development occurred, additional Districts were formed, resulting in nine benefit/improvement zones (A through I). In 2000, the assessments collected from properties in Zone G paid off the outstanding obligations for streetlight improvements, and Zone G was combined into Zone C. The City’s current “Consolidated Citywide District” includes eight established zones:
Landscaping Only - Zone A (Phillips Ranch)
Lighting and Landscaping - Zone B (Phillips Ranch), Zone D (Garey Avenue – State Route 71/Lexington), Zone E (Garey Avenue – Auto Center), Zone F (Garey Avenue – Lexington to Ninth), and Zone H (University Corporate Center) Street Light Maintenance – Zone C (Citywide) and Zone I (Emerald Court) With establishment of the Consolidated Citywide District, all new site developments are required to consent to inclusion in the assessment district for lighting and/or landscaping. As a result of this requirement, 49 parcels are being added to Zone C Citywide lighting. The new parcels are listed in the Engineer’s Report. The revenue from the additional properties is included in the fiscal impact section of this report. Pursuant to the Landscaping and Street Lighting Act of 1972, the levy of the annual assessments of an established assessment district requires the following actions to be taken prior to the Assessment Roll submission to the Los Angeles County Auditor by August 2022:
CONSOLIDATED DISTRICT RENEWAL PROCEEDINGS
DATE
City Council - Adopt Resolution Ordering Engineer’s Report April 18, 2022 (Completed)
City Council – 1) Approve Preliminary Engineer’s Report, and 2) Adopt Resolution of Intent Setting the date of Public Hearing June 6, 2022
City Council – 1) Conduct Public Hearing to receive public comment and testimony regarding the annual assessments, and 2) Adopt a Resolution approving the Assessment Diagram and the Levy of Assessments for FY 2022-23 July 18, 2022
File a certified copy of the diagram and assessments with the County Auditor August 2022
There are no proposed increases to the assessment formulas within the District. Therefore, there are no Proposition 218 requirements to be met for the current action.
Due to rising costs that exceed available revenues, we may need to consider an assessment increase in the near future for certain portions of the District to maintain the current level of maintenance.
Prepared by:
_____________________________
Shandy Dittman
Public Works Fiscal and Project Manager
ATTACHMENT(S):
Attachment No. 1 – Resolution No. 2022-101
Attachment No. 2 – Engineer’s Report
Approval of Engineer’s Report and Adoption of a Resolution of Intent Setting July 18, 2022 as the Public Hearing Date Regarding Annexation of Additional Territory and the Levy of Annual Assessments