TO: TARA SCHULTZ, CITY MANAGER
FROM: JEREMY SWAN, INTERIM COMMUNITY SERVICES DIRECTOR
DATE: JUNE 25, 2019
Reviewed by:
City Manager: TS
Finance Director: AP
SUBJECT:
Title
APPROVAL OF THE DISTRICT ENGINEER'S REPORT, AND ADOPTION OF THE 2019-20 LANDSCAPE AND LIGHTING DISTRICT ANNUAL ASSESSMENT OF $180.17 PER ASSESSMENT UNIT
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SUMMARY
On February 26, 2019, the City Council authorized the preparation of the 2019-20 Engineer’s Report for the voter-approved Citywide Landscape and Lighting District (LLD). State law requires an annual update for the levying of Landscape and Lighting District assessments. The first step is the preparation of the Engineer’s Report for 2019-20. The annual report includes the proposed budget for the services provided under the LLD, which includes the maintenance of landscape, parks, trees, and streetlights. The report is now complete and attached for the City Council’s review and consideration (Attachment A).
As permitted in the enabling resolution (Attachment B), the Engineer has determined that the change in the February 2018 to February 2019 Los Angeles-Riverside-Orange County Consumer Price Index (CPI) represents an increase of 2.51%. The application of this change to the LLD assessment would increase it by $4.40, from $175.77 per assessment unit (AU) to $180.17 per AU for 2019-20.
RECOMMENDATION
Recommended Action
Staff recommends that the City Council:
A. Open the public hearing, receive public comment, and close the public hearing;
B. Accept the Engineer’s Report prepared by Willdan Financial Services; and
C. Adopt A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CLAREMONT, CALIFORNIA, CONFIRMING A DIAGRAM AND ASSESSMENT, AND LEVYING THE ASSESSMENT FOR THE 2019/20 FISCAL YEAR IN CONNECTION WITH LANDSCAPE AND LIGHTING DISTRICT NO. LL001 PURSUANT TO THE PROVISIONS OF PART 2 OF DIVISION 15 OF THE CALIFORNIA STREETS AND HIGHWAY CODE.
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ALTERNATIVES TO RECOMMENDATION
In addition to the recommendation, there is the following alternative:
• Refer the matter back to staff for further information.
FINANCIAL REVIEW
Assessment Unit and CPI Adjustment
The formula used to calculate each parcel’s LLD levy is based upon a standard assessment unit. Single-family residential parcels less than 11,500 square feet in area are considered one assessment unit. From this base, all other land use designations are assigned assessment units based upon the established formula (The complete formula is contained in the attached Engineer’s Report, pages 12-13). The annual increase in the assessment amount is limited to the increase in the Los Angeles-Riverside-Orange County Consumer Price Index (CPI) for the 12-month period, February to February. The CPI increase for this period is 2.51%.
The assessment per AU for 2018-19 was $175.77. Applying an increase in the CPI of 2.51% would increase the assessment to $180.17. This new assessment amount would result in $79,511 in additional revenue, bringing the total LLD assessment revenue to $2,706,082 for 2019-20. The total LLD maintenance costs for 2019-20 are estimated at $3,837,879.
Revenue from LLD assessments will fund approximately seventy percent of eligible LLD program expenditures, with approximately thirty percent subsidized by the General Fund.
Below is an overview of the proposed expenditures and revenues for 2019-20:
2019-20 Maintenance and Expenditure Plan 2019-20 Revenues
Developed Parks $1,475,317 LLD Assessments $2,706,082
Street Medians & Rights-of-Way 1,283,545 General Fund 1,131,797
Trees 810,319 Total Revenues: $3,837,879
Street Lighting 260,198
Administration Costs 8,500
Total Expenditure Plan: $3,837,879
The costs to research this issue, prepare documentation, and complete this report are estimated to be $653. These costs are in staff time allocated to the project and are included in the operating budget of the Community Services Department.
ANALYSIS
LLD Scope of Services
The proposed $3,837,879 LLD program budget covers the maintenance of landscaping, the urban forest and street lighting improvements throughout the City. A detailed description of the maintenance activities that occur within the LLD is included below.
Developed Parks
The City has twenty-one developed parks, totaling 154.7 acres that are maintained through the LLD. The estimated cost to maintain City parks next fiscal year is $1,475,317. The following are typical maintenance activities for City parks. Given the potential for the return of drought conditions and City Council directives, such as park landscape improvements, new playground equipment, or the installation of new park amenities, some of these activities may change during 2019-20.
• Turfgrass mowing and edging
• Repairing irrigation systems as required
• Fertilization and pest control as needed
• On-going weed abatement
• Litter removal
• Trimming of trees and shrubs
• Daily janitorial services for park restrooms
• Graffiti removal as necessary
• Playground equipment inspections
• Vandalism and fencing repairs as necessary
Street Medians & Rights-of-Way
The City has 95 median islands, totaling over ten acres, and over fifty acres of public right-of-way that are maintained by the LLD. This includes landscaped grounds in the Village and the parking structure. The estimated cost to maintain these landscaped areas next fiscal year is $1,283,545. Typical maintenance activities in this cost center include the following activities, which may change during 2019-20 given the potential for the return of drought conditions and City Council directives, such as landscape and irrigation improvements in medians.
• Turfgrass mowing and edging (parkways only)
• Repairing irrigation systems as needed
• Fertilization and pest control as needed
• On-going weed abatement
• Litter removal
• Trimming of shrubs as needed
Urban Forest
The City maintains approximately 26,450 trees. The estimated 2019-20 cost to maintain City trees is $810,319. This cost includes only partial funding for the Liquidambar, American Elm, and Mature Ash Programs; $200,000 is anticipated to come from grant funds. If those funds are not realized, then the budget will increase by this amount. Typical maintenance activities in the LLD urban forest program include:
• Grid and Select Trimming
• Young Tree Care Program
• Removal and replacement of diseased, dead, and or hazardous trees
• Reforestation
• Integrated Pest Management Program
Street Lighting
There are 2,355 City-owned and 215 Southern California Edison owned streetlights within the LLD. The City is mandated to pay the energy costs for all streetlights located in the public right-of-way within the City limits, regardless of ownership. These expenses are funded by the LLD. In addition to electricity costs, the LLD pays for maintenance and repair of streetlights, which is performed by a private contractor or by Southern California Edison. The total estimated cost for the maintenance and electricity associated with streetlights in 2019-20 is $260,198.
Annual Process for Levying Assessments
Although Claremont voters approved continuing the LLD in 1997, State law requires an annual procedure for levying assessments in accordance with the same procedures the City has followed every year since 1990. This process includes a noticed public hearing to establish the rates and the maintenance plan. The City Council completed the first step in the annual procedure on February 26, 2019, when they authorized Willdan Financial Services to prepare the annual report (Resolution No. 2019-16).
The second step in the annual process is the review of the preliminary Engineer’s Report. On May 28, 2019, the City Council adopted a resolution stating the City’s intent to levy and assess fees in 2019-20 and set a public hearing date of June 25, 2019 (Resolution No. 2019-28).
Following the public hearing, staff recommends that the City Council adopt the Engineer’s Report and authorize the new assessment of $180.17/AU. The report will then be submitted to the County Auditor Controller for collection of the assessment on the November 2019 and April 2020 property tax bills.
RELATIONSHIP TO CITY PLANNING DOCUMENTS
Staff has evaluated the agenda item in relationship to the City’s strategic and visioning documents and finds the following:
Council Priorities - This item addresses the Council Priority: Financial Stability.
Sustainability Plan - This item complies with the goals of Sustainability Plan 6.4.6 Maintain a positive cost/revenue balance in City budgets.
Economic Sustainability Plan - This item relates to the Changing of the Economic Model recommendations outlined in the Economic Sustainability Plan.
General Plan - This item addresses Measure III-42 relating to the Physical Improvements Capital Projects and Maintenance of the General Plan and furthers the goal of continuing to provide well maintained lights and landscape within the City.
2018-19 Budget - This item meets the following Community Services Department Work Plan Goals:
CS-3: Ensure City streetlights are in good and safe working condition;
CS-8: Ensure that parks are in healthy and clean condition, free from litter, graffiti, pests, and disease, to provide a safe environment for the public;
CS-9: Ensure that rights-of-way, parkways, and Village planters are well maintained, free of litter, weeds, and brown spots, with healthy and vigorous plants that represent a good distribution of color; and
CS-12: Preserve and maintain a healthy urban forest that will improve the environment and provide overall beauty to the community.
Youth and Family Master Plan - This item does not relate to the objectives in the Youth and Family Master Plan.
CEQA REVIEW
The Landscape and Lighting Assessment District Annual Update is statutorily exempt from the California Environmental Quality Act (CEQA), pursuant to CEQA Guideline Section 15273(a)(4) of CEQA Guidelines. This update is to determine if the existing maintenance assessment should be modified, and if so, by how much based on the Consumer Price Index change.
This exemption is applicable because the purpose of the annual assessment is to provide funding to maintain existing public landscaping and streetlights within the City of Claremont. Additionally, pursuant to CEQA Guideline Section 15061(b)(3)’s “common sense” exemption, CEQA does not apply to this item because there is no potential for causing a significant effect on the environment - the action will simply provide funding to maintain the public landscaping and streetlights. Therefore, no additional environmental review is necessary at this time.
COMMISSION REVIEW
On May 1, 2019, the Community and Human Services Commission reviewed the Engineer’s Report and unanimously recommended that the City Council apply a levy of $180.17/AU for 2019-20. An excerpt from the approved meeting minutes are included as Attachment C.
PUBLIC NOTICE PROCESS
The City Attorney has determined that State law does not require a citywide mailing to property owners for a CPI-based increase previously approved by the voters. Notice of the public hearing was published in local newspapers ten days in advance as required by law.
This item has been noticed through the regular agenda notification process. Copies are available at the City Hall public counter, the Youth Activity Center, the Alexander Hughes Community Center, and on the City website.
Submitted by: Prepared by:
Jeremy Swan Cari Dillman
Interim Community Services Director Management Analyst
Attachments:
A - Engineer’s Report
B - LLD Confirming Resolution
C - Excerpt from the 5/1/19 Community and Human Services Commission Minutes