Agenda Item No.
CITY OF YUCAIPA
AGENDA REPORT
TO: Honorable Mayor and City Council
FROM: Fermin Preciado, Director of Development Services/City Engineer FOR: City Council Meeting of November 13, 2023
SUBJECT: Annexation of Tract Map No. 14429 into Landscaping and Lighting Maintenance District No. 1 (Zone "EE")
RECOMMENDATION:
That the City Council:
1) Conduct a Public Hearing, and subsequently adopt Resolution No. 2023-53, approving the annexation of Tract Map No. 14429 into the City of Yucaipa Landscaping and Lighting Maintenance District No. 1 (LLMD); and
2) Adopt the methodology for and enact the assessments therein.
BACKGROUND/DISCUSSION:
On September 9, 1991, the City Council voted to form a Landscaping and Lighting Maintenance District (LLMD). Numerous projects under development in the City contain public areas that will require on -going maintenance if they are to continue to provide special benefits for the homeowners within the subdivisions. Staff believes that the best way to ensure that these areas receive the appropriate maintenance is to place individual projects within the City's LLMD.
The proposed annexation will result in the annual levy occurring prior to the City accepting the maintenance obligations. This will allow the buildup of a capital reserve funds for the purposes of funding the cost of vandalism, inclement weather (such as hard freeze or severe erosion), damage done by vehicular traffic, and the coverage of delinquent property taxes in order to ensure the City will not be required to pay for such costs. This annexation and assessment will not affect previously annexed residential subdivisions. The City has also been assured that the assessment will be disclosed during the purchase of the home by the property owner.
It is important to note that this zone will only apply to the properties within the boundaries of a particular tract and that no other property owners will be assessed for any of the maintenance costs.
During the May 22, 2023, City Council meeting, staff recommended the adoption of a resolution to set a time and place to conduct a Public Hearing for the annexation of Tract Map 14429 into LLMD No. 1. During the meeting, the City Council was presented with several public comments
requesting a reevaluation and/or reduction of the proposed assessment amount. The City Council voted to continue the Public Hearing to a later meeting and requested that staff review the Engineer's Report to determine if the proposed assessment amount was appropriate.
Staff and the developer have reevaluated the scope of the proposed landscape improvements, and the overall maintenance costs associated with those improvements. Through this process, the amount of landscaping in areas that are not as visible from the public right of way was reduced.
The number of trees in these areas has not changed, however, the number of plants and shrubs has been reduced and replaced with low maintenance groundcover, ultimately resulting in lower maintenance and water costs. As a result, the Engineer's Report for the subdivision has been revised resulting in a reduction to the proposed annual assessment amount from $1,638.79 to $1,259.16 per lot, for a cost savings in the amount of $379.63 (23% reduction).
Tract Map No. 14429 contains fifty-seven (57) single-family residential lots on 240 acres located on the south side of State Highway 38 just west of Bryant Street. This project was conditioned to be annexed into Landscaping and Lighting Maintenance District No. 1 (Zone "EE") as part of the entitlement process for the subdivision. The developer wishes to have the energy charges and maintenance costs for 6 streetlights, the maintenance costs of 538,080 square feet of landscape area and the cost to maintain the entry gates and related equipment placed into the LLMD. The total estimated annual costs of these items are included in the attached excerpt from the Engineer's Report for this subdivision. In accordance with the provisions of Proposition 218, (the right to vote Act), passed by voters in the November 1996 election, it is necessary to vote on the annexation and levy of assessment by mail -in ballot by the owners of the tracts to annex into the district. Accordingly, a notice of the hearing and ballot was mailed to each property owner.
The City must conduct a Public Hearing upon the proposed assessment not less than 45 days after mailing the notice of the proposed assessment to record owners of each identified parcel.
At the Public Hearing, the City Council considers all protests against the proposed assessment and tabulates the ballots. The City shall not impose an assessment if there is a majority protest.
A majority protest exists if, upon conclusion of the hearing, ballots submitted in opposition to the assessment exceed ballots submitted in favor of the assessment weighted on financial obligation.
FISCAL IMPACT:
According to the Engineer's Report prepared for Tract Map No. 14429, the estimated costs for streetlight maintenance, electricity for the streetlights, landscape maintenance, entry gate maintenance and entry gate electricity for Tract Map No. 14429 totals $1,259.16 per dwelling unit per year.
The annual increase of assessments includes an escalator clause to adjust based on the change in the Consumer Price Index for the Riverside -San Bernardino -Ontario Area for all urban consumers. Utility rates shall be increased accordingly to reflect actual costs.
There is no fiscal impact to the City's General Fund, as the cost is matched to the assessment.
Attachments:
1. Resolution No. 2023-53
2. Excerpt from Engineer's Report for Tract No. 14429
3. Tract Site Map
4. Location Map
5. Full Engineer's Report for Tract No. 14429 is available in the City Engineer's Office.
Approved by: �'—�
ATTACHMENT 1
RESOLUTION NO.2023-53
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF YUCAIPA FOR THE ANNEXATION OF TRACT MAP NO. 14429 TO CITY'S
LANDSCAPING AND LIGHTING MAINTENANCE DISTRICT NO. 1
(ZONE EE) AND THE LEVY OF AN ASSESSMENT ON SUCH
PROPERTY, AND APPROVING THE ENGINEER'S REPORT
WHEREAS, the City of Yucaipa (the "City") has received a written request from the owner of the property comprising of Tract Map No. 14429 in the City requesting that such property (the "Property") be annexed to City of Yucaipa Landscaping and Lighting Maintenance District No. 1 (Zone EE) thereof for the maintenance, servicing and operation of public landscaping, energy charges and maintenance, servicing and operation of streetlights and appurtenant facilities; and
WHEREAS, the City Council has received an Engineer's Report prepared by the developer's engineer as required by the City of Yucaipa with regard to the annexation of the Property to the District and levy of a proposed assessment thereon for the 2024-2025 fiscal year (the "Report"), which contains all matters required by Section 22567 of the California Streets and Highways Code and Section 4 of Article XIIID of the California Constitution; and WHEREAS, the City Council has determined that the Property should be annexed to the District, that the Report should be approved, and that the City Council should fix the time and place for a public hearing at which the City Council will receive testimony regarding the proposed assessment of the annexation of the Property to the District and the levy of the proposed assessment thereon.
NOW, THEREFORE, BE IT RESOLVED, DETERMINED AND ORDERED
BY THE CITY COUNCIL OF THE CITY OF YUCAIPA AS FOLLOWS:
Section 1. The Report is approved. The City Council declares its intention to order the annexation the Property to the District and to levy an assessment on the Property for the 2024-2025 fiscal year in an amount which shall not exceed the amount set forth in the Report.
Section 2. The improvements which are to be provided within the District and for the benefit of the Property are generally described as the installation and planting of landscaping, irrigation systems and appurtenant facilities, drainage facilities, energy charges and maintenance of street lights and entry gates, all of which shall be maintained as provided in the Act.
Section 3. The Property to be annexed to the District is all of the property which is comprised of Tract Map No. 14429 in the City as shown on the map thereof which is on file in the office of the Director of Development Services/City Engineer.
Section 4. Reference is made to the Report, a copy of which is on file with the City Clerk for a full and detailed description of the improvements, the Property which is to be annexed to the District and the proposed assessments upon the assessable lots and parcels of land into which the Property will be subdivided upon the recording of the final subdivision map or maps of Tract Map No. 14429.
Section 5. A public hearing on the question of the annexation of the Property to the District and the levy of the proposed assessment on the Property was conducted by the City Council at 6 p.m. on November 13, 2023 in the City Council Chambers at 34272 Yucaipa Boulevard in the City of Yucaipa, California. The City Council has allowed public testimony regarding the assessment which is proposed to be levied on the Property upon its annexation to the District at 6 p.m. during its regular meeting on November 13, 2023. Pursuant to Section 4 of Article XIIID of the California Constitution and Section 53753 and Section 54954.6 of the California Government Code, the City Clerk shall mail a written notice of the time and place of such public meeting and the time and place of such public hearing to the record owner of each parcel of the Property and a ballot whereby each such owner may indicate his or her name, reasonable identification of his or her parcel and support or opposition for the proposed annexation of the Property to the District and the proposed assessments thereon. Such notice and ballot shall in all respects conform to the requirements of subdivision (c) and (d) of Section 4 of Article XIIID of the California Constitution and Section 53753 of the California Government Code.
PASSED, APPROVED and ADOPTED this 13"' day of November, 2023.
Justin Beaver, Mayor
ATTEST:
Ana Sauseda
Director of General Services/City Clerk
ATTACHMENT 2
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ESTIMATE OF COST
The 1972 Act provides that the total cost of installation construction, maintenance and servicing of the public landscaping, park facilities and street lighting can be recovered by the District in proportion to the special benefit that they provide to the parcels. Incidental expenses including administration of the District, engineering fees, legal fees and all other costs associated with the formation and maintenance of the District can also be included.
Improvements which are to be included in the District have not yet been completed and are being constructed by the developer of the property who will be responsible for the maintenance of all improvements until accepted by the City of Yucaipa. It is anticipated that the improvements will be completed and accepted by the City by January 2024. In 1998, the City Council amended the original methodology for the Maintenance District. The amendment allows the annual charge to be levied on the tax roll during the fiscal year the annexation takes place, and not after the warranty period ends. This amendment commenced with Zone G98.
The reasons are as follows: It allows the buildup of a capital reserve fund for the purposes of covering the costs of vandalism, inclement weather, damage done by vehicular traffic, and the coverage of delinquent property taxes.
The assessment for the District after construction is complete will be based on the qualifying improvements that are to be maintained by the City. An estimate of the yearly maintenance cost for Fiscal Year 2024-2025 is:
ESTIMATE OF YEARLY MAINTENANCE COST
Street Lights, 6 Ea. @ $100 $600.00
Entry $9,350
Landscaping $52,460.56
Subtotal $62,410.56
Administration @ 5% $3,120.53
CIRF @ 10% $6,241.06
Total annual $71,772.14
Annual cost per unit. 57 units $1,259.16
The 1972 Act requires that a special fund be set up for the revenues and expenditures of the District. Funds raised by assessment shall be used only for the purpose as stated herein.
A contribution to the District by the City may be made to reduce assessments, as the City Council deems appropriate. Any balance remaining on July 1 must be carried over to the next fiscal year.
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ATTACHMENT 5
PLANS AND SPECIFICATIONS
The permanent public improvements which will be constructed by the developer as a condition of subdivision of land within the City of Yucaipa consist of:
Lighting
Poles, fixtures, bulbs, conduits, equipment including guys, anchors, posts and pedestals, metering devices and appurtenant facilities as required to provide street lighting in public rights -of -way and easements within the proposed boundaries of said Maintenance District.
These improvements are more specifically shown on the Street Improvement Plans for Tract Map No. 14429 prepared Peabody Engineering and approved by the City of Yucaipa. These plans are on file with the City of Yucaipa.
Landscaping
Plantings, shrubbery, trees, irrigation systems, trails, fuel modification, landscape utilities and appurtenant facilities in parkways and designated easements, within the proposed boundaries of said maintenance district.
Fntries
Entry gates, gate operators, management services, kiosk entry system, postal access points, fire department Knox switches, Phone service & connections, monument signs, fences, power pedestals.
These improvements are more specifically shown on the landscape/architectural plans for Tract Map No. 14429 prepared by STB Landscape Architects and the street improvement plans, as approved by the City of Yucaipa. These plans are on file at the City of Yucaipa.
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ESTIMATE OF COST
The 1972 Act provides that the total cost of installation construction, maintenance and servicing of the public landscaping, park facilities and street lighting can be recovered by the District in proportion to the special benefit that they provide to the parcels. Incidental expenses including administration of the District, engineering fees, legal fees and all other costs associated with the formation and maintenance of the District can also be included.
Improvements which are to be included in the District have not yet been completed and are being constructed by the developer of the property who will be responsible for the maintenance of all improvements until accepted by the City of Yucaipa. It is anticipated that the improvements will be completed and accepted by the City by January 2024. In 1998, the City Council amended the original methodology for the Maintenance District. The amendment allows the annual charge to be levied on the tax roll during the fiscal year the annexation takes place, and not after the warranty period ends. This amendment commenced with Zone G98.
The reasons are as follows: It allows the buildup of a capital reserve fund for the purposes of covering the costs of vandalism, inclement weather, damage done by vehicular traffic, and the coverage of delinquent property taxes.
The assessment for the District after construction is complete will be based on the qualifying improvements that are to be maintained by the City. An estimate of the yearly maintenance cost for Fiscal Year 2024-2025 is:
ESTIMATE OF YEARLY MAINTENANCE COST
Street Lights, 6 Ea. @ $100
Entry
Landscaping
Subtotal
Administration @ 5%
CIRF @ 10%
Total annual
Annual cost per unit. 57 units
$600.00
$9,350
$52,460.56
$62,410.56
$3,120.53
$6,241.06
$71,772.14
$1,259.16
The 1972 Act requires that a special fund be set up for the revenues and expenditures of the District. Funds raised by assessment shall be used only for the purpose as stated herein.
A contribution to the District by the City may be made to reduce assessments, as the City Council deems appropriate. Any balance remaining on July 1 must be carried over to the next fiscal year.
7