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Home My WebLink About061521-07.1 ADMINISTRATIVE STAFF REPORT 7.1 TO: Mayor and Town Council June 15, 2021 SUBJECT: Resolution No. 28-2021, confirming the diagram and assessment and ordering the levy of the annual assessment, for Danville Street Lighting and Landscape Assessment District No. 1983-1 BACKGROUND Upon incorporation, Danville inherited several street lighting districts from Contra Costa County. In 1983, these were consolidated into a single Town-wide Lighting and Landscape Assessment District (the “District”). The District was expanded in 1987 to include major roadside and median landscaping, and in 1990 to include parks and facilities maintenance. In 1997, the District was ratified by the Town’s property owners with more than 87% support. In 2003, the Town’s property owners approved an increase in the assessments to maintain an adequate level of maintenance. The District operates pursuant to the requirements of the Landscaping and Lighting Act of 1972 (the “Act”) and Article XIIID, Section 4 of the California Constitution, adopted by Proposition 218. The Act requires that every year the District pr epare an Engineer’s Report describing the improvements maintained by the District and the assessments necessary to maintain the improvements. On March 16, 2021, the Town Council adopted Resolution No. 10-2021 directing preparation of the Preliminary Engineer’s Report for fiscal year 2021/22. On May 18, 2021, the Town Council adopted Resolution No. 22-2021 accepting the Preliminary Engineer’s Report, declaring the intent to levy and collect assessments for Fiscal Year 2021/22 and setting June 15, 2021 as the date for public hearing. DISCUSSION The District consists of four benefit zones: Zones A and B assess parcels benefitting from roadside landscape maintenance (Zone B has a higher intensity of landscaping than Zone A, refer to the Assessment Diagram on page 10 of the Engineer’s Report). Zone C assesses parcels benefitting from street lighting, and Zone D assesses parcels benefitting from park and community facilities maintenance. Levying LLAD Assessment 2 June 15, 2021 The Engineer’s Report (Attachment B) proposes a budget and assessment rates for each of the four zones. The report also describes the improvements to be maintained and the methodology used to determine the proposed assessments. Property owners are assessed based on the special benefit received from the improvements being maintained by the District. These assessments partially fund the total costs of operation to maintain the improvements by the District. Although the Town is not proposing to increase assessments this fiscal year, the law still requires that a public hearing be conducted as the final step before levying the assessments. The assessments may be levied by a simple majority vote of the Town Council. There are four possible assessment rate scenarios for a single-family residential parcel depending on the zones they are located within as shown below. Possible Single-Family Residential Assessment Rate Scenarios for Fiscal Year 2021-22 Scenario Zone A Zone B Zone C Zone D Total Assessment Rate No. 1 $40.20 $0.00 $0.00 $67.80 $108.00 No. 2 $0.00 $179.50 $0.00 $67.80 $247.30 No. 3 $40.20 $0.00 $58.50 $67.80 $166.50 No. 4 $0.00 $179.50 $58.50 $67.80 $305.80 PUBLIC CONTACT Posting of the meeting agenda serves as notice to the general public. Notice of this hearing was published as required by law. FISCAL IMPACT The projected District Budget for Fiscal Year 2021/22 is $6,354,793, which will be covered by assessments, District fund balance, cost sharing with the General Fund for Zone D expenditures, plus an estimated $2,256,469 subsidy to maintain a positive fund balance in Zone D, a subsidy of $150,000 in Zone A, a subsidy of $200,000 in Zone B and a subsidy of $200,000 in Zone C. The District’s budget also includes the senior rebate for a portion of the Zone D park maintenance assessment. The annual cost of the senior rebate is approximately $40,000. Levying LLAD Assessment 3 June 15, 2021 RECOMMENDATION Adopt Resolution No. 28-2021, confirming the diagram and assessment, and ordering the levy of the annual assessment for Danville Street Lighting and Landscape Assessment District No. 1983-1. Prepared and Reviewed by: Dave Casteel Maintenance Services Director Attachments: A - Resolution No. 28-2021 B – 2021/22 Final Engineer’s Report (Available upon request from City Clerk’s office)