DATE: AUGUST 8, 2023
DEPARTMENT: PUBLIC WORKS DEPARTMENT
FROM: DAVID JACOBS, PW DIRECTOR
THRU: ADRIANA ROBLES, CITY ENGINEER
BY: HILDA GARCIA, PW ADMIN SUPERVISOR
TITLE: ANNUAL LEVY OF ASSESMENTS FOR LANDSCAPE AND MAINTENANCE DISTRICTS RECOMMENDED MOTION:
A motion to approve resolutions approving the Engineer’s Reports, confirming the diagrams and levy amounts, and authorizing the levy and collection of annual assessments for Fiscal Year 2024-25 for the landscape maintenance assessment districts, and approving General Fund transfers to cover the parks and open space maintenance costs associated with the special benefits received by parcels outside the LMAD’s boundaries.
EXECUTIVE SUMMARY:
The City Council’s approval is needed to process the annual levy of assessments within the city’s six lighting and landscaping districts Fiscal Year 2024/25 in compliance with the procedures of CA Streets and Highways Code Sections 22620-22641.
BACKGROUND:
There are six landscape maintenance assessment districts (LMAD) within the City of Salinas formed under the terms of the CA Streets and Highways Code Section 22500 et seq., known as the Landscaping and Lighting Act of 1972, and adopted locally in Article II, Chapter 21C of the Salinas Municipal Code. The LMAD’s fund the cost of operating and maintaining certain infrastructure (ex. public lighting, landscaping neighborhood improvements) through the assessments from each parcel within the LMAD boundaries, based on the special benefit received by each parcel. The law requires an Engineer’s Report for each fiscal year for which assessments are levied and collected.
The reports contain:
An overview of the LMAD; and
Plans and specifications for the improvements; and
An estimate of the costs of the improvements; and
A description of method of apportionment of assessments; and A diagram of the LMAD assessment boundary and improvements.
Draft Engineer’s Reports can be found in each LMAD’s webpage:
https://www.cityofsalinas.org/Your-Government/Departments/Public-Works/PW-Maintenance-Services/Landscape-Maintenance-Assessment-Districts Table 1 below summarizes the work funded by each LMAD within its respective boundaries:
Table 1. Summary of Work funded by each LMAD within its boundaries.
LMAD
Landscape & Water
Walkways, Crosswalks & Signs*
Stormwater Detention Basins
Sewer Pump Station & Subdivision Fence
Street Pavement Maintenance*
Street Lighting (Including PG&E Costs)
Airport
X
**North/East
X
X
Harden Ranch
X
X
X
***Mira Monte
X
X
X
X
****Monte Bella
X
X
X
X
X
Vista Nueva
X
X
X
* Not all street segments included, only segments identified in District’s most recent Engineer’s Report **Includes Natividad Creek bridge maintenance at Lexington Drive *** Includes driveway paver maintenance at courtyards
****Includes a portion of neighborhood park landscaping maintenance. PG&E costs are excluded from streetlights costs.
This item was noticed in keeping with the state's Ralph M. Brown Act and Engineer’s Reports were made available for public viewing and review at least 72 hours before the scheduled meeting date. Notices of the public hearings are required to be published in a newspaper of general circulation and were published in The Monterey Herald following the Council’s June 11, 2024, approval of the resolution to initiate the annual assessment process. Furthermore, direct postcard mailers were sent to affected property owners.
To further public outreach efforts, a webpage was created for each LMAD within the City webpage and residents were notified via mailers of its existence. Each LMAD’s webpage includes a summary of improvements covered, quarterly budgets (updated quarterly by Staff) and the current landscaping contracts, and most recently approved Engineer’s Reports.
PROPOSED ASSESSMENTS
The assessments for the Airport Business Center District, Harden Ranch and Vista Nueva have remained the same since 1987, 1991 and 2011, respectively. These districts were formed without an allowable rate inflator. In addition, Proposition 218, a state law that placed restriction on the financing of local government services, would require a notice and ballot to be sent to each property owner who is to be assessed, followed by a public hearing, before assessment rates could be increased.
Airport Business Center Landscape Assessment District No. 87-1 The Airport District’s assessments are based on acreage and will continue at anticipated rate of $217.49 per acre for FY 24-25.
Harden Ranch Maintenance Assessment District No. 2
The Harden Ranch District’s assessments will continue at an anticipated rate of $66.72 annually per single-family residence parcels and $353.66 per acre for the non-single family residence parcels for FY 24-25.
Mira Monte Maintenance District Landscape & Lighting District No 2 and Assessment District 2000-1
The Mira Monte District’s formula includes a built-in inflationary factor, which sets maximum assessments at $1,067.42. The Mira Monte District’s assessments have been $594.74 annually per parcel (55.74% of the maximum) since 2005-06. The assessments were sufficient to cover maintenance at the time. However, assessments are recommended to be increased to both capture current maintenance costs and future replacement costs. To provide partial, initial funding for full replacement of the improvements prior to the end of their useful life it is anticipated assessments be set to $610.08 annually per parcel (an increase of 2.58% from last year) for FY 24-25.
Monte Bella Maintenance District
Monte Bella’s District formula includes a built-in inflationary factor, which allows current assessments to be set at $1,391.36 per Equivalent Benefit Unit (EBU). Parcels within the Monte Bella District boundaries will have an anticipated assessment adjusted according to the actual special benefit derived from the four distinct types of improvements in the Monte Bella District, which are: street landscaping, street lighting, park/open space & detention basin landscaping, and street maintenance (“Benefit Zones”) maintained and financed by annual assessments. Annual assessments are anticipated at $645.51 (33% the maximum allowable rate) for FY 24-25. Benefit Zone locations identified in the Engineer’s Report.
North/East Area Maintenance District Landscape and Lighting District No. 1 and Landscaping Assessment District 88-3
The North/East District’s formula is based on benefit units (BU) and includes an inflation factor allowing the current maximum assessment rate to be set at $243.13 per BU for FY 24-25. Parcels within the North/East District boundaries will have an anticipated assessment adjusted according to their proximity to the Parks and Open Space Landscaping (“Benefit Zones”) and the actual proportion of special benefit derived.
Vista Nueva Maintenance Assessment District No. 97-2
The Vista Nueva District’s formula reached the maximum allowed in 2011. The Vista Nueva District’s assessment is based on per parcel and will continue at anticipated rate of $600 annually for FY 24-25.
The following table summarizes anticipated assessment rates.
Table 2. Breakdown of LMAD Assessments
District
Unit
FY 23-24
FY 24-25
% Change from Previous Year
Actual
Max Assessment Allowed
Recommended
Airport Business Center
Per parcel
$217.49
$217.49
$217.49
-0-
Harden Ranch
Per SFU
$66.72
$66.72
$66.72
-0-
Mira Monte
Per parcel
$594.74
$1,067.42
$610.08
2.58%
Monte Bella
Per EBU
$802.19
$1,391.36
$645.51
-19.53%
North/East
Non-SFU, per acre
$353.66
$353.66
$353.66
-0-
Low-Density Parcels
$237.69
$243.13
$213.02
-10.38%
Medium Density Parcels
$142.61
$145.87
$131.81
-7.57%
High Density Parcels
$95.07
$97.25
$91.21
-4.06%
Vista Nueva
Per Parcel
$600.00
$600.00
$600.00
-0-
Local agency assessment rolls must be sent to the Assessor’s Office by August of each tax year in order for the parcel levies to be billed and collected.
CEQA CONSIDERATION:
Not a Project. The City of Salinas has determined that the proposed action is not a project as defined by the California Environmental Quality Act (CEQA) (CEQA Guidelines Section 15378). In addition, CEQA Guidelines Section 15061 includes the general rule that CEQA applies only to activities which have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA. Because the proposed action and this matter have no potential to cause any effect on the environment, or because it falls within a category of activities excluded as projects pursuant to CEQA Guidelines section 15378, this matter is not a project. Because the matter does not cause a direct or foreseeable indirect physical change on or in the environment, this matter is not a project. Any subsequent discretionary projects resulting from this action will be assessed for CEQA applicability.
STRATEGIC PLAN INITIATIVE:
This item relates to the Council’s Strategic Plan Goal of Infrastructure and Environmental Sustainability by improving City facilities, including lighting and landscaping.
DEPARTMENTAL COORDINATION:
Public Works Department’s Engineering Division oversees the preparation of budget documents and publication of the Engineer’s Reports. Maintenance Division oversees the LMAD’s day-to-day maintenance activities. The Finance Department works closely with Public Works in obtaining and then transmitting the up-to-date levy information to the County for processing.
FISCAL AND SUSTAINABILITY IMPACT:
A further funding breakdown of the LMAD’s FY 24/25 total levy (including the $10 per parcel collection fee), FY 24-25 operating budget, operating reserve fund and capital reserve fund are identified in Table 3 below.
Table 3. Summary of LMAD's FY 24/25 Levies, Budgets and Reserve Balances LMAD
Total Levy
2024-2025 Operating Budget
Estimated Reserve Fund Balance
(as of June 2024)
Recommended Reserve Fund Balance
Estimated Capital Budget
Airport Bus Park Maintenance District (2104)
$14,468
$17,872
$9,184
$8,936
0 N E Salinas Landscape District (2105)
$807,526
$803,070
$1,281,087
$401,535
$10,000
Harden Ranch Landscape District (2106)
$155,164
$135,600
$151,945
$67,800
0 Vista Nueva Maintenance District (2107)
$29,890
$38,150
$156,977
$19,075
$225,000
Mira Monte Maintenance District (2108)
$123,846
$159,150
$310,449
$79,575
0 Monte Bella Maintenance District (2109)
$557,495
$474,600
$2,633,245
$237,300
$5,186,198
The Fiscal Year 2024-2025 operating and capital improvement budgets were approved by City Council with the City’s Fiscal Year 2024-25 Operating Budget and Capital Improvement Program and Annual Appropriations Limit on June 11, 2024, via Resolution 22979.
Airport Business Center Landscape Assessment District No. 87-1 The Airport District Operating Fund (2104.50.5562) is projected to receive approximately $2,500 in miscellaneous revenue and interest earnings.
Harden Ranch Maintenance Assessment District No. 2
The Harden Ranch District currently has an Operating Reserve Fund of approximately $151,945 but does not have an established Capital Fund Reserve. A capital replacement analysis will be conducted to identify specific project and timing of replacement of improvements within the district. Once a detailed Capital Improvement Program, based on needs, is established, Staff will return to Council to request a transfer from the Harden District’s Operating Fund Reserve to the District’s Capital Improvement Reserve Fund.
Mira Monte Maintenance District Landscape & Lighting District No 2 and Assessment District 2000-1
Mira Monte District has an Operating Reserve Fund Balance, but no established Capital Improvement Reserve Fund. It’s formation documents state that $7,100 annually was to be set aside for capital replacement amount. A capital replacement analysis will be conducted to identify specific project and timing of replacement of improvements within the district. Once a detailed Capital Improvement Program, based on needs, is established, Staff will return to Council to request a transfer from the Mira Monte’s Operating Fund Reserve to the District’s Capital Improvement Reserve Fund to start replacement of curb & gutter, sidewalk, concrete paver driveway clusters, striping, landscaping, and street lighting.
Monte Bella Maintenance District
Monte Bella District’s Capital Improvement Reserve Fund (5800.50.9120) expended $455,643 to complete roadway improvements within the major roadways outlined in the Engineer’s Report, leaving an approximate remaining balance of $4,575,197 as of June 2024. An increase of $611,000 was approved by Council on June 11, 2024, to fund for future roadway improvements and replacement of landscaping infrastructure.
During the FY 23/24, Council approved a new full-time park maintenance worker partially funded (50%) from the Monte Bella District’s operating fund (2109.50.5567) and the remaining half from general funds.
Monte Bella assessments are based on the general vs specific special benefits with regards to the proximity and access to the parks. Parcels within the Monte Bella District may only be assessed for their share of special benefits from the park improvements. The general benefit portion amount must be funded by a source other than the Monte Bella District, therefore, the City’s general fund will contribute $167,053 to the District’s FY 24/25 operating budget (2109.50.5567) to cover the cost of the special benefits received by parcels outside the Monte Bella District boundary.
North/East Area Maintenance District Landscape and Lighting District No. 1 and Landscaping Assessment District 88-3
The North/East District’s Capital Improvement Reserve Fund (5800.50.9053) expended $30,000 in landscaping improvements during FY 23/24. An increase of $10,000 was approved by Council on June 11, 2024, to fund future landscaping improvements.
North/East District property owners benefit a mixed apportionment of general versus specific special benefits with regards to Parks and Open Space Landscaping. The assessment calculation is based parcels’ relative distance to the identified special benefit zones. Parcels within the District may only be assessed for their share of special benefits from the park improvements. The general benefit proportion amount must be funded by a source other than the North/East District, therefore the City’s general fund will contribute $83,814 to the North/East District’s FY 24/25 Operating Budget (2105.50.5563).
Vista Nueva Maintenance Assessment District No. 97-2
Vista Nueva District has established a Capital Improvement Reserve Fund (5800.50.9056) of $225,000 for future pump station and street pavement upgrades including full replacement of the fence.
Under the 1972 Act, operating reserves cannot exceed six months of anticipated expenses. Therefore, Staff will be preparing detailed needs-based analysis and identifying the specific projects and timing for replacement of improvements within each LMAD. Afterwards, Staff will return to Council to request appropriate transfers from the Operating Reserve Fund to a Capital Improvement Project.
The transfers noted in Table 4 are requested from the General Fund to cover the parks and open space maintenance costs associated with the special benefits received by parcels outside the LMAD’s boundaries, as outlined in the Engineer’s Reports.
Table 4. General Funds Transfer Requests
LMAD
LMAD Operating Budget
General Fund Contribution
N E Area Landscape District (2105)
2105.50.5563
$83,814
Monte Bella Maintenance District (2109)
2109.50.5567
$167,053
ATTACHMENTS:
Resolutions
Engineer Reports
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Page | 1
Single Family Residences = 1 EBU; Government Owned Parcels 1 acre = 8.33 EBUs.
Low-Density Parcel = 1 BU per parcel; Medium-Density Parcel = 0.6 BU per parcel; and High-Density Parcel = 0.4 BU per parcel Per approved 24-25 City of Salinas Adopted Operating Budget Per approved 24-25 City of Salinas Adopted Operating Budget CIPs 9053 (North/East), 9056 (Vista Nueva), and 9120 (Monte Bella)
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