CITY OF POMONA
COUNCIL REPORT
April 3, 2023
To: Honorable Mayor and Members of the City Council
From: James Makshanoff, City Manager
Submitted By: Rene Guerrero, Public Works Director
SUBJECT: PUBLIC HEARING TO CONSIDER ADOPTION OF A RESOLUTION CONFIRMING THE BALLOT RESULTS TO DETERMINE WHETHER A MAJORITY PROTEST EXISTS IN THE PROCEEDINGS TO FORM THE PHILLIPS RANCH LANDSCAPING AND LIGHTING MAINTENANCE ASSESSMENT DISTRICT; AND ADOPTION OF ONE OF TWO RESOLUTIONS DECLARING THE BALLOT RESULTS AND APPROVING CERTAIN ACTIONS RECOMMENDATION:
It is recommended that the City Council take the following actions:
Conduct a Public Hearing regarding the levy of Fiscal Year 2023-24 assessments and receive final ballot submissions for the proposed Phillips Ranch Landscaping and Lighting Maintenance Assessment District; After receiving public comments, testimony, and final ballots, close the Public Hearing and order the tabulation of ballots to be conducted in the Chuck Bader Conference Room; and Confirm the ballot results to determine whether a majority protest exists in the proceedings to form the Phillips Ranch Landscaping and Lighting Maintenance Assessment District; and adopt one of two attached resolutions declaring the ballot results either in favor of the assessment or confirming the existence of a majority protest as follows:
RESOLUTION NO. 2023-49 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF POMONA DECLARING THE RESULT OF THE PHILLIPS RANCH LANDSCAPING AND LIGHTING MAINTENANCE ASSESSMENT DISTRICT BALLOT PROCEEDING AND APPROVING CERTAIN ACTIONS; or RESOLUTION NO. 2023-50 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF POMONA DECLARING THE RESULT OF THE PHILLIPS RANCH LANDSCAPING AND LIGHTING MAINTENACE ASSESSMENT DISTRICT BALLOT PROCEEDING AND ABANDONING PROCEEDINGS TO FORM THE DISTRICT EXECUTIVE SUMMARY:
Staff is recommending that City Council conduct a Public Hearing regarding the proposed formation of the City of Pomona Phillips Ranch Landscaping and Lighting Maintenance Assessment District. Following the close of the Public Hearing, the City Council will instruct staff to tabulate received ballots in the Chuck Bader Conference Room. The public is invited to attend the ballot tabulation. Once the ballot tabulation is complete, the City Council will receive the certified results of the ballot tabulation. If the City Council determines that a majority protest does not exist, they may approve and adopt a resolution ordering the formation of the Phillips Ranch Landscaping and Lighting Maintenance Assessment District and to levy and collect the assessments for FY 2023-24 (Attachment No. 1). If a majority protest does exist, the Council may adopt a resolution (Attachment No. 2) abandoning any further proceedings to form a new District, and there will be a separate Public Hearing regarding the levy of annual assessments for FY 2023-24 in the existing Zones A and B.
PUBLIC NOTICE REQUIREMENTS:
In accordance with Government Code Section 53753 and the California Constitution Article XIII D, Section 4 (“Proposition 218”), a 45-day notice of this public hearing was mailed to all affected property owners entitled to cast a ballot on February 15, 2023. A notice for this Public Hearing was advertised in the Inland Valley Daily Bulletin on March 23, 2023.
FISCAL IMPACT:
The fiscal impact to the current Phillips Ranch Zone AB Assessment District Fund (Fund 256) will be dependent upon the outcome of the majority protest proceeding. Property owners will vote to approve an increase to the annual assessment from $277.81 to $511.58 or protest the increase by the close of tonight’s Public Hearing.
PREVIOUS RELATED ACTION:
On February 6, 2023, the City Council adopted a Resolution to initiate proceedings to establish a new assessment district as described herein, to replace what is currently the Consolidated Citywide Assessment District – Zone AB, in accordance with the Landscape and Lighting Act of 1972 (1972 Act). On February 6, 2023, the City Council also passed a Resolution declaring its intent to form the new “Phillips Ranch Landscaping and Lighting Maintenance Assessment District.” In accordance with the 1972 Act, the Resolution of Intention ordered the mailing of the ballots, approved the draft Engineer’s Report for the proposed Phillips Ranch Landscaping and Lighting Maintenance Assessment District, and set a public hearing date for April 3, 2023 to discuss the matter and receive the final ballots.
DISCUSSION:
The formation of a new District, and any possible increase in the assessments, is subject to a majority protest proceeding for the property owners within the territory in compliance with the California Constitution Article XIIID and the Proposition 218 Omnibus Implementation Act Gov. Code Section 53730 et seq.
The City has been aware of a severe budget deficit for the Phillips Ranch Landscape Maintenance District (District) for several years. The District’s budget provides for landscape maintenance and lighting services managed by the City, and paid for by an assessment that the Phillips Ranch property owners pay annually per the original Development Agreement. This annual assessment has remained at a fixed level since 1993, and has not seen any sort of substantial increase to match the ever-increasing costs to provide the landscape and lighting maintenance services. In 2008, an assessment increase to a sustainable level was proposed per Proposition 218 requirements. However, that ballot measure was voted down. In 2019, the City once again went through the Proposition 218 process to increase the assessment, which, if approved, would have increased the assessment by $17 per month, and included annual CPI increases that would have been capped at five percent. This, too, did not pass. The City is faced with an almost complete depletion of the reserves and a $410,000 deficit in this fund, and recently had to make substantial cuts in landscape maintenance, tree maintenance, and watering.
After the attempt to increase the assessment in 2019 failed, a Phillips Ranch Oversight Committee was formed to help the City prioritize health and safety needs with the limited funding provided by the current assessment. The Committee is comprised of seven residents from Phillips Ranch. The work of the Committee has resulted in a recommendation to increase the annual assessment for the District. Any changes to the assessment amounts is subject to a majority protest proceeding for the property owners within the Phillips Ranch Assessment District.
The City appointed NBS Government Finance Group (NBS) to assist the Committee in these efforts. NBS has prepared the Engineer’s Report for the proposed Phillips Ranch Landscaping and Lighting Maintenance Assessment District (Attachment No. 3), which describes the proposed boundaries of the new District along with proposed assessments to property owners based upon special benefit. NBS worked with the City Attorney to ensure the report meets local, state, and federal regulations including compliance with Proposition 218, the 1972 Act and other applicable assessment district regulations.
Proposition 218 requires that the City mail a minimum 45-day notice of a public “majority protest” hearing to all property owners within the District subject to the assessment, which outlines the proposed District and assessment, and includes a written ballot for the property owner to cast a vote either in support of or against the proposed District and new assessment. NBS completed the noticing and ballot process. Notice of the Public Hearing was also advertised in the Inland Valley Daily Bulletin on March 23, 2023 (Attachment No. 4).
Tonight’s public hearing represents the end of the 45-day timeframe for ballot submission. After the conclusion of the Public Hearing, NBS will tabulate assessment ballots in the Chuck Bader Conference Room adjacent to the Chamber. The tabulation process will be open to the public. At the conclusion of the ballot tabulation, the City Council will confirm the results and take final action.
If there is a “majority protest,” the new District cannot be formed and there will be a separate Public Hearing regarding the levy of annual assessments for FY 2023-24 in the existing Zones AB. A “majority protest” exists if the assessment ballots submitted, and not withdrawn, in opposition to the proposed assessment exceed the assessment ballots submitted, and not withdrawn, in its favor. Assessment ballots are weighted by the amount of the proposed assessment to be imposed upon the identified parcel for which each assessment ballot is submitted.
If there is not a “majority protest,” the Council may approve and adopt a Resolution declaring: 1) the results of the ballot tabulation for the proposed Phillips Ranch Landscaping and Lighting Maintenance Assessment District, 2) the formation of the new Phillips Ranch Landscaping and Lighting Maintenance Assessment District, and 3) ordering the collection of levies for FY 2023-24 .
If there is a majority protest, the Council may approve and adopt a Resolution declaring the results of the ballot tabulation for the proposed Phillips Ranch Landscaping and Lighting Maintenance Assessment District, and abandoning proceedings to form such Assessment District and the levy of an annual assessment therein.
Prepared by:
____________________________
Shandy Dittman
Public Works Fiscal and Project Manager
ATTACHMENTS:
Attachment No. 1 – Resolution 2023-49 - A Resolution Declaring the Results of the Phillips Ranch Landscaping and Lighting Maintenance Assessment District Ballot Proceeding and Approving Certain Actions.
Attachment No. 2 – Resolution 2023-50 - A Resolution Declaring the Results of the Phillips Ranch Landscaping and Lighting Maintenance Assessment District Ballot Proceeding and Abandoning Proceedings to Form the District.
Attachment No. 3 – Engineer’s Report for Phillips Ranch Landscaping and Lighting Maintenance Assessment District Attachment No. 4 – Public Hearing Notice
Public Hearing Regarding Phillips Ranch Landscaping and Lighting Maintenance Assessment District, and Final Ballot Submission and Tabulation