Susana Alcala Wood, City Attorney Jorge Oseguera, City Auditor Mindy Cuppy, City Clerk Howard Chan, City Manager John Colville, City Treasurer
City Council Report
915 I Street, 1st Floor
Sacramento, CA 95814
www.cityofsacramento.org
File ID: 2022-00293 April 26, 2022 Consent Item 14
Title: Power Inn Road Maintenance District No. 2003-01– Annual Proceedings
Location: District 6
Recommendation: Adopt a Resolution: 1) approving the Engineer’s Annual Report; 2) declaring the intention to levy and collect assessments for maintenance of landscaping improvements for Fiscal Year (FY) 2022/2023 for the Power Inn Maintenance District No. 2003-01; and 3) setting a time and place for a public hearing on May 31, 2022.
Contact: Arwen Wacht, Senior Development Project Manager, (916) 808-7535, [email protected]
, Sheri Smith, Special Districts Manager, (916) 808-7204, [email protected], Department of Finance
Presenter: None.
Attachments:
1-Description/Analysis
2-Schedule of Proceedings
3-FY2022/23 Engineer’s Annual Report
4-Resolution – Approving Engineer’s Annual Report
5-Exhibit A – District/Boundary Map
6-Exhibit B – FY2022/23 District Budget & Parcel Assessments
Description/Analysis
Issue Detail: On July 29, 2003, Council approved formation of the Power Inn Road Maintenance District No. 2003-01 (District) under the California Landscaping and Lighting Act of 1972 (California Streets and Highways Code § 22500 et seq.), called the “1972 Act.” The District provides funding for the maintenance of the landscaped corridor located along the frontage of lots adjacent to Power Inn Road between 14
th Avenue and the Regional Transit
overcrossing located just south of Folsom Boulevard (see Exhibit A for a map of the District).
The landscaped corridor is designated as the area between the separated sidewalk and the curb and gutter.
Pursuant to the 1972 Act and City Code Chapter 3.124, an Engineer’s Annual Report for the District (Report) is required to be prepared for Council review and approval and is Attachment 3 to this Council report. The Report describes the improvements to be maintained by the District and recommends the assessments to be collected to fund such maintenance. The Report has been prepared and, on March 15, 2022, the Council directed that such Report be filed with the City Clerk. Council approval of the Report is now required before the City can collect assessments in an amount sufficient to provide partial funding for landscape maintenance costs of the District for FY2022/23. The Council must also adopt a Resolution of Intention for its levy and collection of assessments for the District and then hold a hearing at a future date to formally confirm the assessments.
The District funds only a portion of the total cost of providing landscape maintenance services to the District. The Report separates the benefits of the District between “special benefits” to the assessed parcels and “general benefits” that do not directly benefit those assessed parcels. Only special benefits can be funded by District assessments. Analysis of the District amenities shows that assessed parcels in the District receive 74.25% of the benefit from the improvements. This percentage is the special benefit provided by the District. The remaining amount must be funded from other sources. The funding sources and budget are detailed in the Financial Considerations section below and on Exhibit B to the Resolution.
Policy Considerations: The actions in the recommended Resolution are required by the 1972 Act and City Code Chapter 3.124 for annual proceedings of an existing district.
Economic Impacts: None.
Environmental Considerations:
California Environmental Quality Act (CEQA): Under the CEQA Guidelines, continuing administrative activities of an assessment district and creation of government funding mechanisms or other governmental fiscal activities which do not involve any commitment to any specific project which may result in a potentially significant physical impact on the environment do not constitute a project and are therefore exempt from CEQA review (14 Cal. Code Regs. § 15378(b)(2), (b)(4)).
Sustainability: Not applicable.
Commission/Committee Action: Not applicable.
Rationale for Recommendation: The recommended Council action supports funding for landscape maintenance services in the District via property-based assessments. The recommended Council action is also necessary to allow staff to notify the public of the proposed hearing, which has been set for May 31, 2022. At the conclusion of the public hearing, staff will recommend Council adopt the budget and levy the assessments.
Financial Considerations: The total estimated expense budget for the District in FY2022/23 is $18,302 as shown in Exhibit B and detailed in the Report on file with the Infrastructure Finance Division of the Department of Finance (designated by the City Clerk to be the repository of documents associated with special districts). Pursuant to the Report, $13,584 of assessment revenue can be used to fund special benefits. The remaining portion of the maintenance, utilities, and administrative costs, attributed to general benefit and detailed in Exhibit B, will be provided by the operating budgets of the Department of Public Works, Streets Division and the Department of Finance, Infrastructure Finance Division.
The proposed assessment for FY2022/23 of $3.038 per linear foot of frontage, is a 3.19% increase from the FY2021/22 assessment of $2.944 per linear foot of frontage. The proposed FY2022/23 assessment is also the maximum allowed assessment for FY2022/23. The proposed increase is necessary to maintain service levels and adequate reserves to cover extraordinary maintenance.
Local Business Enterprise (LBE): Not applicable.
Attachment 1
SCHEDULE OF PROCEEDINGS
POWER INN ROAD MAINTENANCE DISTRICT NO. 2003-01
FY2022/23
March 15, 2022 Council – Direct Filing of Engineer’s Report
April 26, 2022 Council – Approval of Engineer’s Annual Report and Resolution of Intention and Set Date for Public Hearing
May 21, 2022 Publish Notice of Public Hearing
May 31, 2022 Council – Public Hearing, Council Orders Annual Levy
August 2022 Assessments to County for Placement on Tax Roll
RESOLUTION NO.
Adopted by the Sacramento City Council
Resolution Approving Engineer’s Annual Report and Intention to Levy and Collect Assessments for Maintenance of Landscaping Improvements for the Power Inn Road Maintenance District No. 2003-01
Fiscal Year 2022/23
(Pursuant to Landscaping and Lighting Act of 1972)
BACKGROUND
A. The Power Inn Road Maintenance District No. 2003-01 (District), as depicted in Exhibit A, was established by the City Council and approved by the property owners on July 29, 2003.
B. The City Council established the District under the Landscaping and Lighting Act of 1972 (California Streets and Highways Code § Section 22500 et seq.) (the 1972 Act), and has previously levied assessments on property in the District to pay for landscaping maintenance and related services within the District, all in accordance with the 1972 Act and City Code Chapter 3.124.
C. On March 15, 2022, City Council directed the Supervising Engineer of the Department of Public Works, designated by the City Council as the Engineer of Work for the District, to file an Engineer’s Annual Report in accordance with the provisions of the 1972 Act (Resolution No. 2022-0075).
D. The Engineer’s Annual Report includes an analysis that quantifies the amount of special benefit derived from District activities by the parcels paying the assessment.
The result of the analysis is that 74.25% of the maintenance, utilities, and administrative services provided in the District are a special benefit to the parcels within the District and 25.75% of the services are a general benefit that do not directly benefit the assessed parcels. Pursuant to state law, the City can only collect assessments to the extent that the improvements provide special benefits to assessed parcels and must utilize other sources of funding to provide the general benefit portion. A detailed budget is shown on Exhibit B.
E. The maximum authorized assessment amount for the District is automatically increased for Fiscal Year (FY) 2022/23 by 3.21% based on an increase to the 2022 CPI index. The proposed actual assessment for FY2022/23 will be increased to the maximum allowed assessment for FY2022/23 of $3.038 per linear foot of frontage, in order to maintain service levels and adequate reserves to cover extraordinary maintenance.
BASED ON THE FACTS SET FORTH IN THE BACKGROUND, THE CITY COUNCIL RESOLVES AS FOLLOWS:
Section 1 The City Council finds and determines that the background statements A through E are true and correct.
Section 2 The City Council hereby approves the Engineer’s Annual Report for the District for FY2022/23 that is on file with the Infrastructure Finance Division of the Department of Finance, designated by the City Clerk to be the repository of documents for special districts.
Section 3 The City Manager or the City Manager’s designee is hereby authorized to make any necessary budgetary adjustments associated with the approval of the Engineer’s Annual Report for FY2022/23.
Section 4 The City Council intends to levy and collect assessments within the District during FY2022/23. The area of land to be assessed is in the City of Sacramento, Sacramento County and depicted on the map attached hereto as Exhibit A.
Section 5 The maintenance of improvements to be made in the District is generally described as follows:
Maintenance of the landscape improvements adjacent to Power Inn Road on the East side from 14th Avenue to approximately 900 feet north of Cucamonga Avenue and on the west side from 14th Avenue to approximately 590 feet north of Cucamonga Avenue.
The improvements generally consist of landscaping and irrigation systems for the landscape area adjacent to Power Inn Road between the back of the curb and the front of the sidewalk. Maintenance of said improvements includes, but is not limited to, periodic mowing of grass, trimming of trees and shrubs, and fertilizing, together with the regular furnishing of water for irrigation of all plant material, and the repair, maintenance and replacement of the irrigation system, planted materials and amenities.
Section 6 In accordance with the City Council’s resolution directing the filing of an Engineer’s Annual Report, the Engineer of Work has filed the report required by the 1972 Act with the Infrastructure Finance Division. All interested parties are referred to that report for a full and detailed description of the improvements, the boundaries of the District, and the proposed assessments upon assessable lots and parcels of land within the District.
Section 7 At 5:00 pm on Tuesday, May 31, 2022, the City Council will conduct a public hearing on the question of the levy and collection of the proposed annual assessment for the District. The public hearing is scheduled to be conducted by Zoom teleconferencing pursuant to City Council findings under California Government Code section 54953(e) related to the COVID- 19 pandemic state of emergency. However, if the City Council orders City Council meetings to resume in person, then the location of the public hearing will be the City Council Chambers, New City Hall, 915 I Street (first floor), Sacramento, California. The location of the public hearing will be specified on the agenda for the City Council meeting.
Section 8 The proposed FY 2022/23 assessment of $3.038 per linear foot of frontage is an increase of 3.19% from the FY2021/22 assessment of $2.944 per linear foot of frontage. The proposed FY2022/23 assessment of $3.038 per linear foot of frontage is also the maximum allowed assessment for FY2022/23 as shown on Exhibit B.
Section 9 The City Clerk is authorized and directed to give the notice of hearing required by the 1972 Act.
Section 10 Exhibits A and B are part of the resolution.
Table of Contents:
Exhibit A: District Map
Exhibit B: FY2022/23 District Budget & Parcel Assessment
Exhibit A
Exhibit B
POWER INN ROAD MAINTENANCE DISTRICT NO. 2003-01
DISTRICT BUDGET
FUND 2201
FY2022/23
Special
Benefit
Contribution
(Fund
2201)
General
Benefit
Contribution
District
Total
Special and General Benefit Split
Respectively 74.25% 25.75%
Estimated Beginning Fund
Balance 3,120
Total Assessed to Property
Owners 13,937
Total Resources $17,057 $4,713 $21,770
Maintenance & Utilities 10,024 3,476 13,500
Administrative Costs
Public Improvement Financing
Administration 2,710 940 3,650
Accounting
Administration 815 283
1,098
County Billing 40 14 54
Total Expenditures $13,584 $4,713 $18,302
Estimated Ending Fund Balance 3,468
Year-Over-Year Change in Fund
Balance 348
PARCEL ASSESSMENT
The annual maintenance cost for each property owner is based on the linear footage of their property’s street frontage multiplied by the following cost per foot.
Name
FY 2022/23
Maximum
Authorized
Amount
FY2021/22
Cost Per Foot
FY2022/23
Cost Per
Foot
Power Inn Road Maintenance District $3.038 $2.944 $3.038
Every fiscal year the maximum authorized assessment may increase by the Consumer Price Index (CPI), San Francisco, or by 4% per year, whichever is less. The maximum authorized assessment amount for the District has been automatically increased for FY 2022/23 by 3.21% based on an increase to the 2022 CPI index.