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Home My WebLink About062122-08.1 ADMINISTRATIVE STAFF REPORT 8.1 TO: Mayor and Town Council June 21, 2022 SUBJECT: Resolution No. 50-2022, 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 April 5, 2022, the Town Council adopted Resolution No. 24-2022 directing preparation of the Preliminary Engineer’s Report for fiscal year 2022/23. On May 17, 2022, the Town Council adopted Resolution No. 38-2022 accepting the Preliminary Engineer’s Report, declaring the intent to levy and collect assessments for Fiscal Year 2022/23 and setting June 21, 2022 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 21, 2022 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 2022-23 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 2022/23 is $6,749,837, which will be covered by assessments, District fund balance, cost sharing with the General Fund for Zone D expenditures, plus an estimated $2,472,220 subsidy to maintain a positive fund balance in Zone D, a subsidy of $350,000 in Zone A and a subsidy of $250,000 in Zone B. 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 21, 2022 RECOMMENDATION Adopt Resolution No. 50-2022, 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. 50-2022 B – 2022/23 Final Engineer’s Report (Available upon request from City Clerk’s office) RESOLUTION NO. 50-2022 CONFIRMING THE DIAGRAM AND ASSESSMENT AND ORDERING THE LEVY OF THE ANNUAL ASSESSMENT FOR DANVILLE STREET LIGHTING AND LANDSCAPE ASSESSMENT DISTRICT NO. 1983-1 WHEREAS, The Danville Street Lighting and Landscape Assessment District No. 1983-1 (the “District”) was created in 1983 pursuant to the Landscaping and Lighting Act of 1972 (commencing at Section 22500 of the California Streets and Highways Code), hereafter referred to as the “Act”; and WHEREAS, on April 5, 2022, the Town Council adopted Resolution No. 24-2022, designating Francisco & Associates and directing the preparation of the Preliminary Engineer’s Report for the District; and WHEREAS, on May 17, 2022, the Town Council adopted Resolution No. 38-2022, accepting the Preliminary Engineer’s Report, declaring the Town Council’s intent to levy and collect assessments for Fiscal Year 2022/23 and setting June 21, 2022 as the date and time for the public hearing; and WHEREAS, at the time appointed on June 21, 2022, the Town Council did conduct a public hearing at which all interested persons were afforded an opportunity to be heard and to register their protest against the proposed assessment; now, therefore, be it RESOLVED, by the Danville Town Council that; 1. No majority protest existing, the Engineer’s Report, preliminarily adopted by the Town Council on May 17, 2022, and as modified to correct errors in individual assessments, is hereby approved and adopted as the Final Engineer’s Report for the District for Fiscal Year 2022/23. 2. The diagram showing the assessment district and the zones thereof and the proposed assessments contained in the Engineer’s Report and presented to the property owners of record within the District are hereby confirmed. 3. Pursuant to the authority of the 1972 Act, the assessment to pay the costs and expenses of maintaining the improvements described in the Engineer’s Report is hereby levied. 4. Based upon the oral and written evidence presented, including the Engineer’s Report, the Town Council finds that there is substantial evidence in the record demonstrating that the properties within the District receive a special benefit over and above the benefit conferred on the public at large and that the amount of the assessment is proportional to the special benefit conferred on the property. DocuSign Envelope ID: 9A31ABA3-45BC-4A3E-9D96-7FDD605D26D0 ATTACHMENT B PAGE 2 OF RESOLUTION NO. 50-2022 5. The assessments per Equivalent Dwelling Unit (“EDU”) as described in the Engineer’s Report, shall be $40.20 for Zone A, $179.50 for Zone B, $58.50 for Zone C and $67.80 for Zone D. 6. The Town shall continue the Senior Rebate program whereby owners of parcels within the District, which owners are 65 years of age or older, may obtain by application submitted prior to December 31, 2022, a rebate of $54.00 from the Zone D/Park Maintenance assessment levied on the owner’s principal place of residence. 7. The District Engineer is directed to file a certified copy of the diagram, assessment and this resolution with the Auditor of the County of Contra Costa by no later than the third Monday in August. Upon receipt of the diagram and assessment, the County Auditor shall enter on the county assessment roll opposite each lot or parcel of land the amount assessed thereupon, as shown in 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 Town. 8. Upon receipt of monies representing assessments collected by the County, the Town’s Finance Manager shall deposit the monies in the Town’s Lighting and Landscape funds. These funds shall be used only for maintenance and installation of the improvements described in the Engineer’s Report. APPROVED by the Danville Town Council at a regular meeting on June 21, 2022 by the following vote: AYES: NOES: ABSTAINED: ABSENT: ______________________________ MAYOR APPROVED AS TO FORM: ATTEST: _______________________________ ______________________________ CITY ATTORNEY CITY CLERK DocuSign Envelope ID: 9A31ABA3-45BC-4A3E-9D96-7FDD605D26D0 ATTACHMENT B