HomeMy WebLinkAboutAGENDA REPORT 2019 0619 REG CCSA ITEM 08ACITY OF MOORPARK,
CALIFORNIA
City Council Meeting
of June 19, 2019
ACTION Approved Staff
Recommendation, Including
Adoption of Resolution No.
2019-3819.
BY B.Garza
A. Consider Continued Public Hearing on Landscaping and Lighting Maintenance
Assessment District 20 Meridian Hills and Resolution Confirming the Levy Amounts
and Ordering the Continuation of Assessment for Fiscal Year 2019/2020. Staff
Recommendation: 1) Open the public hearing, accept public testimony, and close
the public hearing; and 2) Adopt Resolution No. 2019-____. ROLL CALL VOTE
(Staff: Irmina Lumbad)
Item: 8.A.
MOORPARK CITY COUNCIL
AGENDA REPORT
TO: Honorable City Council
FROM: Irmina Lumbad, Interim Finance Director
DATE: 06/19/2019 Regular Meeting
SUBJECT: Consider Continued Public Hearing on Landscaping and Lighting
Maintenance Assessment District 20 Meridian Hills and Resolution
Confirming the Levy Amounts and Ordering the Continuation of
Assessment for Fiscal Year 2019/2020
SUMMARY
On June 5, 2019 City Council held a public hearing on the final review of the
assessment Engineer’s Report for the Landscape and Lighting Maintenance
Assessment Districts (LLMAD). During this hearing, residents of District 20 - Meridian
Hills expressed that they were not given sufficient information regarding the
expenditures relating to the improvements in their district and requested City Council to
continue the public hearing to June 19, 2019. City Council agreed to continue public
hearing for District 20 - Meridian Hills but approved the balance of staff’s
recommendation and adopted the Resolution with revised language for Section 5 as
follows: “With the exception of District 20 - Meridian Hills, the assessments to pay the
costs and expenses of the improvements for fiscal year 2019/2020 are hereby levied.”
The City Council is being asked to open the continued public hearing on the District 20 -
Meridian Hills Landscape and Lighting Maintenance Assessment Districts (AD) for fiscal
year (FY) 2019/2020, receive testimony, close the public hearing, and adopt the
resolution confirming the assessment levy.
DISCUSSION
As part of the annual budget process, the City Council considers whether or not to
continue the subject Assessment Districts and levy assessments for the upcoming fiscal
year. In preparation for that consideration, it is necessary to prepare an Engineer’s Report
setting forth certain relevant information pertaining to such an action. On January 16,
2019, the City Council adopted Resolution No. 2019-3782 directing the preparation of said
Item: 8.A.
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Honorable City Council
06/19/2019 Regular Meeting
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Engineer’s Report. At the May 1, 2019 meeting, City Council adopted Resolution No.
2019-3806, which approved the preliminary Engineer’s Report and set the public hearing
on June 5, 2019. Public Hearing notices were published on the Ventura County Star on
May 24, 2019, as well as, on the City’s website beginning May 21.
At the June 5, 2019 public hearing, residents of District 20 - Meridian Hills stated they
were not given sufficient information regarding the expenditures relating to the
improvements in their district; expressed concerns over the proposed increased
assessment of $1,000 per unit from $350 per unit and requested City Council to extend
the public hearing on June 19, 2019. The City Council approved staff’s
recommendation to adopt the Resolution with the exception of levying the FY
2019/2020 proposed assessment for District 20 - Meridian Hills and directed staff to
meet with residents of Meridian Hills to provide them information on the expenses
associated with the proposed assessment.
FY 2019/2020 Assessment Amounts and Adjustment
The method used to establish the assessment amounts is based on a two-step process:
1) identifying the “special” benefits resulting from the improvements; and 2) allocating
the assessments to the property based on the proportional “special” benefits derived
from improvements over and above the “general” benefits.
Pursuant to language set forth in the formation document for District 20, the annual
maximum assessment for the District may be increased annually to cover cost-of-living
(COLA) increases. The COLA increase in the Los Angeles Area Consumer Price Index
(CPI) from December 2017 to December 2018 is 3.24 percent (3.24%). The maximum
assessment amount for District 20 for FY 2019/2020 includes a COLA adjustment which
is summarized as follows:
Zone/District
FY 18/19
Maximum
Assessment
COLA -
3.24%
FY 19/20
Maximum
Assessment
20 Meridian Hills T5187 $2,720.43 $88.14 $2,808.57
Capital Reserve
Section 5.5 Landscape and Lighting Assessment District Capital Reserve Fund Balance of
City Council Policies Resolution No. 2018-3763 provides for a Capital Reserve Account to
be maintained for each district with a fund balance of approximately equal to one year of
its projected current operating budget. Accordingly, the amount of the assessment to be
levied upon the affected properties shall be reduced, but not lower than 10
percent (10%) of the annual maximum assessment, as determined by the Assessment
Engineer to be consistent with these guidelines. For FY 2019/2020, District 20 is
recommended to be levied at $1,000 per unit or 36% of $2,808.57, the maximum
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06/19/2019 Regular Meeting
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assessment value calculated above. At this amount, the projected fund balance at June
30, 2020 for this District will be $258,757 or 48% of the required reserve.
Table 1
Zone /
District
Fund
Balance,
Estimate
7/1/19
Other
Revenue
Total
Levy
Amount
Annual
Operating
Budget
Fund
Balance,
Projected
6/30/20
%
Reserve
Funded Remarks
20 533,496 15,000 248,000 537,739 $ 258,757 48 % 36% of maximum assessment
The developer for District 20 - Meridian Hills paid $945,775, in the first two years after
inception which allowed reduced assessments to the property owners. In fact for four
years from FY 2009/10 to FY 2012/13, the property owners were assessed at 10% of the
maximum. Then over the next three years, from FY 2013/14 to FY 2016/17 the property
owners were assessed $0.00. In anticipation of the District’s acceptance, the City levied
the minimum 10% of maximum on FY 2017/18 and FY 2018/19.
On February 6, 2019, the City Council adopted Resolution No. 2019-3786 accepting
Phase I of the landscape improvements into the District 20 – Meridian Hills effective March
1, 2019. As part of this acceptance, City Council approved an agreement to refund
$173,774 for overpayment of assessments to ORA Ashford 94, LLC and ORA Marquis 89,
LLC. As of July 1, 2019, the estimated fund balance will be $533,496, while the
preliminary FY 2019/2020 expenditure budget for the district is $537,739. If we levy the
proposed rate of $1,000 per unit, it will generate about $248,000 in revenues. The
remaining $274,739 will be drawn from the fund balance of $533,496 and will leave
$258,757 or about 48% of annual expenses in reserve for future landscape improvements.
Lighting and Landscape Maintenance Budget for Adoption
The Engineer’s Report dated April 2019 was prepared in advance of the Council’s
discussions of the FY 2019/2020 budget. On May 15, 2019, the City Manager’s Proposed
Operating and Capital Improvement Projects Budget for FY 2019/2020 was presented to
City Council and was discussed on May 29, 2019. The budget figures identified in the
Report may not be identical to those in the draft budget, but will be closely comparable.
The FY 2019/2020 proposed expenditure budget for final adoption for District 20 –
Meridian Hills is $574,774.
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District 20 - Meridian Hills
FY 2019/2020 Expenditures
Engineer's
Budget
For Adoption Notes
Salary & Employee Benefits $37,414.00 $27,683.00 18% District 20 share of personnel cost of
$153,778 funding 1.45 positions directly
working on all LLMAD
Property Maintenance $271,964.00 $271,964.00 includes landscape contract $212,964;
tree trimming $25,000; landscape & trail
improvements $25,000; & weed abatement
Utilities $159,000.00 $203,000.00 includes electricity $3,000 & water $200,00
Overhead (Cost Plan) Charge $69,361.00 $72,127.00 19% District 20 share of City overhead
charges of $379,510
Total $537,739.00 $574,774.00
The personnel costs and overhead allocation of ($99,810) represents District 20’s share
of the total costs as noted in the table above. These costs are distributed among various
LLMAD using a weighted percentage based on acreage. District 20 – Meridian Hills has
25 acres which represents about 19% of total LLMAD acreage.
FISCAL IMPACT
There will be no fiscal impact to the FY 2018/2019 budget associated with the public
hearing and adoption of the Resolution confirming the levy amount and ordering the
continuation of assessment for FY 2019/2020 for District 20 – Meridian Hills.
If levy amount is not approved for FY 2019/2020, there will be sufficient fund balance to
cover the proposed expenditures. However, it will deplete the District’s fund balance at
June 30, 2020 and leave approximately $1,405 in surplus. Any emergency or contingency
expenses for next fiscal year will have to be advanced or subsidized by the General Fund.
The estimated levy for FY 2020/2021 would have to be over $2,200 just to cover the
annual operating budget of the District or service maintenance will have to be reduced.
STAFF RECOMMENDATION (Roll Call Vote)
1. Open the public hearing, accept public testimony, and close the public hearing.
2. Adopt Resolution No. 2019- ____
Attachment: A - Resolution
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Attachment
RESOLUTION NO. 2019-____
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
MOORPARK, CALIFORNIA, APPROVING THE ASSESSMENT
AND ORDERING THE CONTINUATION OF ASSESSMENT
FOR FISCAL YEAR 2019/2020 FOR THE MOORPARK
LANDSCAPING AND LIGHTING MAINTENANCE
ASSESSMENT DISTRICT 20 MERIDIAN HILLS
WHEREAS, by Resolution No. 2019-3782, the City Council ordered the
preparation of an Engineer's Report for the City’s Landscaping and Lighting
Maintenance Assessment Districts (the "Assessment Districts") for fiscal year
2019/2020; and
WHEREAS, pursuant to said Resolution, the Engineer's Report ("Report") was
prepared by SCI Consulting Group, Engineer of Work, in accordance with Section
22565, et. seq., of the Streets and Highways Code and Article XIIID of the California
Constitution; and
WHEREAS, by Resolution No. 2019-3806 the City Council preliminarily approved
the Engineer’s Report for said Districts and set a date for a Public Hearing; and
WHEREAS, said report was duly made and filed with the City Clerk and duly
considered by this Council and found to be sufficient in every particular, whereupon it
was determined that the report should stand as the Engineer’s Report for all subsequent
proceedings under and pursuant to the aforesaid resolution, and that June 5, 2019, at
the hour of 6:30 p.m. in the Community Center Apricot Room, located at 799 Moorpark
Avenue, Moorpark, California 93021, were appointed as the time and place for a
hearing by this Council on the question of the levy of the proposed assessment, notice
of which hearing was given as required by law; and
WHEREAS, at the appointed time and place the hearing was duly and regularly
held, and all persons interested and desiring to be heard were given an opportunity to
be heard, and all matters and things pertaining to the levy were fully heard and
considered by the Council, and all oral statements and all written protests or
communications were duly heard, considered and overruled, and this council thereby
acquired jurisdiction to order the levy and the confirmation of the diagrams and
assessments set forth in the Engineer’s Report to pay the costs and expenses of the
improvements described in the Engineer’s report with the exception of District 20 –
Meridian Hills. The public hearing for District 20 – Meridian Hills was continued to June
19, 2019 at 6:30 p.m.; and
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Resolution No. 2019–_____
Page 2
WHEREAS, by Resolution No. 2019-3812, City Council approved the final
Assessment Engineer’s Report for the Landscaping and Lighting Maintenance
Assessment Districts and confirmed the levy amounts and ordered the continuation of
assessments for Fiscal Year 2019/2020, with the exception of District 20 – Meridian
Hills; and
WHEREAS, at the continuation of the public hearing for District 20 Meridian Hills
on June 19, 2019 at 6:30 p.m., and all persons interested and desiring to be heard were
given an opportunity to be heard, and all matters and things pertaining to the levy were
fully heard and considered by the Council, and all oral statements and all written
protests or communications were duly heard, considered and overruled, and this council
thereby acquired jurisdiction to order the levy and the confirmation of the diagram and
assessment set forth in the Engineer’s Report to pay the costs and expenses of the
improvements described in the Engineer’s report for of District 20 – Meridian Hills.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF MOORPARK
DOES HEREBY RESOLVE AS FOLLOWS:
SECTION 1. The public interest, convenience and necessity require that the
continuation be made.
SECTION 2. The Assessment District 20 Meridian Hills benefited by the
improvements, being the installation, maintenance and servicing of public lighting and
landscaping (the “Improvements”) and assessed to pay the costs and expenses thereof,
and the exterior boundaries thereof, are as shown by a map thereof filed in the office of
the City Clerk, which map is made a part hereof by reference thereto.
SECTION 3. Any objections filed with respect to the assessments were
considered by the City Council, and based on all the evidence and information, the City
Council hereby overrules those objections. The assessment to pay the costs and
expenses of the Improvements in District 20 Meridian Hills for fiscal year 2019/2020 is
hereby levied. For further particulars pursuant to the provisions of the Landscaping and
Lighting Act of 1972, reference is hereby made to the Resolution Directing Preparation
of Engineer's Report.
SECTION 4. Based on the oral and documentary evidence, including the
Engineer's Report, offered and received at the hearing, this Council expressly finds and
determines (a) the land with the Assessment District will be benefited by the
Improvements, (b) the Assessment District includes all of the lands so benefited, and (c)
the net amounts to be assessed upon the lands within the Assessment District for the
2019/2020 fiscal year, in accordance with the Engineer’s Report, are apportioned by a
formulas and methods which fairly distribute the net amounts among all assessable lots
or parcels in proportion to the estimated benefits to be received by each such lot or
parcel from the Improvements and (d) with respect to AD-07-02 District 20 Meridian
Hills, only special benefits are assessed and no assessment is imposed on any parcel
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Resolution No. 2019–_____
Page 3
which exceeds the reasonable cost of the proportional special benefit conferred on that
parcel.
SECTION 5. Immediately upon the adoption of this resolution, but in no event
later than the third Monday in August following such adoption, the City Clerk shall file a
certified copy of the diagram and assessment and a certified copy of this resolution with
the Auditor of the County of Ventura. Upon such filing, the County Auditor shall enter on
the County assessment roll opposite each lot or parcel of land the amount of
assessment thereupon as shown in the assessment. The assessment shall be collected
at the same time and in the same manner as County taxes are collected and all laws
providing for the collection and enforcement of County taxes shall apply to the collection
and enforcement of the assessment. After collection by the County, the net amount of
the assessments, after deduction of any compensation due the County for collection,
shall be paid to the City of Moorpark Landscaping and Lighting Maintenance
Assessment Districts.
SECTION 6. Upon receipt of the moneys representing assessments collected by
the County, the County shall deposit the moneys in the City Treasury to the credit of the
improvement funds previously established under the distinctive designation of the
Assessment District. Moneys in the improvement funds shall be expended only for the
Improvements.
SECTION 7. The assessments levied are in conformance with Proposition 218.
SECTION 8. The City Clerk shall certify to the adoption of this resolution and
shall cause a certified resolution to be filed in the book of original resolutions.
PASSED AND ADOPTED this 19th day of June, 2019.
_______________________________
Janice S. Parvin, Mayor
ATTEST:
____________________________________
City Clerk
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