FOR THE COUNCIL MEETING OF JUNE 20, 2023
COUNCIL AGENDA REPORT
TO: City Council
FROM: City Manager
Prepared by: Director of Recreation & Parks
SUBJECT: Adoption of Engineer’s Reports and Intent to Levy and Collect the 2023 – 2024 Landscape Assessments
Description:
The City Council will consider the annual Engineer’s Reports for the City’s Landscape Maintenance Districts and special benefit zones, and setting the public hearing to consider the annual Districts’ assessments.
Environmental Notice: The activity is not a “Project” as defined under Section 15378 of the California Environmental Quality Act State Guidelines; therefore, pursuant to State Guidelines Section 15060(c)(3) no environmental review is required.
RECOMMENDATIONS:
1. Adopt a Resolution approving the Engineer’s Reports for the 2023-24 Landscape Maintenance Districts and Special Benefit Zones assessment proceedings.
2. Adopt a Resolution declaring the intent to levy and collect the landscape maintenance assessments for Fiscal Year 2023-24, and setting a Public Hearing for July 18, 2023, to consider the proposed assessments for the Landscape Maintenance Districts and 19 Special Benefit Zones.
BACKGROUND:
During the 1980s, the City of Santa Maria established four geograp hic Landscape Maintenance Districts with Broadway and Stowell serving as the center point. The four “Master Districts” consist of the following: South Miller Street/South College Drive Landscape Maintenance District created by Resolution 81 -298 on August 4 , 1981; Northwest Landscape Maintenance District by Resolution 88-154 on December 20, 1988; Northeast Landscape Maintenance District by Resolution 89 -51 on May 2, 1989; and Southwest Landscape Maintenance District by Resolution 89 -50 on May 2, 1989. The creation of these districts enabled the City of Santa Maria to levy and collect assessments for the purposes of maintaining the public landscaping and parks, and for nuisance abatement within each district.
Within the “Master Districts,” there are currentl y 19 Special Benefit Zones (SBZ). Each SBZ was created at the time when a new development was built, to provide for the perpetual maintenance of additional public improvements associated with the 2 development of each project. These public improvements include retention basins, parks, sidewalks, graffiti abatement, pest abatement, street trees, and all public thoroughfare landscaping. The cost for maintaining the public improvements varies, based on the type and extent of public improvements in each subdivision. This cost is distributed among all assessed properties within the specific SBZ and collected annually through property taxes.
Under the Landscaping and Lighting Act of 1972 (“the Act”), the City is authorized to provide and maintain landscaping, publ ic lighting, appurtenant facilities, and park and recreational improvements. By following the procedures set out in the Act, as well as Proposition 218 and its implementing legislation, the City can assess property owners for the special benefit received from installing and maintaining these improvements.
The process of assessing property for improvements under the Act has several steps. A typical first step is annexing property into a particular part of the City’s system under the Act and setting the assessment for the first fiscal year. This is accomplished through the consent of the current property owner(s) and action of the City Council pursuant to an Engineer’s Report. The Engineer’s Report correctly apportions the costs of specific property according to the special benefit received. If properties receive additional benefits, they are placed into a “zone” that receives a particularized assessment amount accordingly for the additional special benefit received.
Assessment law, in particular Proposition 218, allows only the special benefit received by properties to be assessed. General benefits received by the public are not recoverable using assessments. The Engineer’s Report s apportion or spread the special benefit amounts to the properties to be assessed.
DISCUSSION:
In the fall of 2020, the City entered into an agreement with a financial consultant to update the Engineer’s Report format, detailed information, and exhibits. Now with the modernized report, City Public Works and Recreation and Parks sta ff have taken on the task of preparing the report. The recommended City Council actions are 1) adopting a Resolution approving the Engineer’s Reports for assessment proceedings; and 2) declaring the intent to levy and collect the property tax assessments f or each of the four Landscape Maintenance Districts and the SBZs, and setting a public hearing for July 18, 2023, to consider the proposed landscape assessments for approval.
City staff has determined that the annual Consumer Price Index CPI rose by 4.9 percent in calendar year 2022, requiring that the 2023 district and SBZ assessments be increased by 4.9 percent to keep pace with increased costs.
Effective July 1, 2023, the City’s contractor, J.D. Humann Company, has will increased its fees by 3 percent due to the CPI. These increasing costs continue to impact the ability for of the current assessment level to meet the cost of operations.
3 The proposed assessments are intended to provide adequate funding for district operations over the next fiscal year and are consistent with past City Council actions.
The action before the City Council not only authorizes the levying and collection of the property tax assessment for the Landscape Maintenance Districts and the SBZs, but also authorizes the transfer of funds out from the appropriated reserves in order to finance operational costs (unanticipated expenses or project overages) in the districts during the next fiscal year.
Alternative(s)
The City Council has the option to not approve the Engineer’s Reports.
Fiscal Considerations
The Engineer’s Reports (Attachments A-D) present the specific financing related to each of the Landscape Maintenance District Assessments for the “Master Districts” and the SBZs. To summarize, the Landscape Maintenance Districts and the SBZs generate approximately $5.1 million in reve nue to fund direct maintenance services and district operation costs. This revenue is collected from approximately 10,070 residential and 675 commercial properties located within a district.
Impact to the Community
Landscaping along the City’s major arterials and surrounding residential and commercial developments in the City is a positive indication of the fine quality of life in Santa Maria and its aesthetic appeal. Accordingly, the City’s landscaping provides for the community’s enjoyment, neighborhood cohesiveness, and beauty. The assessments herein provide for perpetual care of these public areas and safeguard the assets of surrounding property owners.
During FY 2022 -23, the Landscape Maintenance District staff faced major challenges primarily related to the ongoing drought and the States requirement to abandon all non - sports turf such as grassy parkways. Staff efforts and expenses were focused on materials, planning, managing, and funding turf conversion to low-water use landscaping.
Attachment A: Engineer’s Report-Northwest
Attachment B: Engineer’s Report-Northeast
Attachment C: Engineer’s Report-South Miller Street/South College Drive Attachment D: Engineer’s Report-Southwest
Attachment E: Affected Properties by the Proposed Assessments Attachment F: Boundary Map of Assessment Districts