HomeMy WebLinkAbout020425-06.7
ADMINISTRATIVE STAFF REPORT 6.7
TO: Mayor and Town Council February 4, 2025
SUBJECT: Resolution No. 7-2025, initiating formation of Danville Landscaping and
Lighting Assessment District No. 2025-1 and ordering preparation of the
required Engineer’s Report pursuant to the Landscaping and Lighting Act
of 1972 and Section 4 of Article XIIID of the California Constitution.
BACKGROUND
Since incorporation of the Town of Danville (“Town”) in 1982, a significant portion of the
annual budget corresponding to the maintenance and operations of the Town’s landscaping,
park, and streetlighting improvements has been funded through assessments levied under
the Danville Street Lighting and Landscape Assessment District No. 1983-1 (“LLAD No.
1983-1”). LLAD No. 1983-1 was established pursuant to the provisions of the Landscaping
and Lighting Act of 1972 (“Act”) and its assessments are approved annually by Town
Council for placement on the property tax rolls.
The passage of Proposition 218 in 1996 created new procedural and substantive
requirements for all Landscaping and Lighting Assessment Districts (“LLAD” or “LLADs”)
in the state, the most significant being that any increase or modification to existing LLAD
assessments require notices and ballots to be mailed to all affected property owners.
Assessment increases or modifications to existing LLAD assessments can be implemented
if a majority of ballots returned, weighted by proposed assessment, do not oppose the
proposed assessments. In 1997, property owners in the Town ratified the LLAD No. 1983-1
assessments with more than 87% support. In 2003, property owners in the Town approved
an assessment increase which did not include an annual escalator to keep pace with
inflationary increases in maintenance costs and accumulate funds for repairs and capital
improvement projects. The Town has not proposed any increases or modifications to the
LLAD No. 1983-1 assessments since 2003 and maintenance costs have continued to rise,
creating a significant budget shortfall.
The total LLAD No. 1983-1 revenue for Fiscal Year 2003/04 was $3,016,300 as compared to
the projected $3,129,750 forecast for current Fiscal Year 2024/25. During that same time
period, annual operating expenditures have increased from $2,727,000 for Fiscal Year
2003/04 to a budget of $5,518,916 for current Fiscal Year 2024/25. This represents a 3.8%
increase in revenue compared to a 102% increase in expenditures. A significant portion of
the increased expenditures are attributable to utility costs that are largely outside of the
LLAD 2025-1 - Resolution of Initiation 2 February 4, 2025
Town’s control. Direct water and electricity costs have increased by $1.41 million,
accounting for over 56% of the expenditure increase. Despite steps taken by the Town to
curb water and electricity usage, these costs are expected to continue to increase
substantially in future years. It should also be noted that the total expenditure figures cited
include operating expenses only, and do not include capital maintenance costs. For Fiscal
Year 2024/25, capital maintenance costs will add approximately $1.3 million to the total
budget.
At its September 10, 2024 Study Session, the Town Council considered various options to
address the growing budget shortfall and provide additional funding to continue
maintenance of the Town’s landscaping, park, and streetlighting improvements to the
standard residents have come to expect. As a result of that discussion, the Town Council
directed staff to proceed with efforts to generate an estimated $1.4 million in additional
revenue commencing Fiscal Year 2025/26, if approved by Town property owners and Town
Council. The additional revenue will cover approximately two-thirds of the current annual
operating deficit and will include an annual assessment escalator, not to exceed 3%, to keep
pace with inflationary increases in maintenance costs.
In working with the District Engineer, it has been determined that given the changes in
proposed methodology and rates, it would be appropriate to initiate proceedings to form
Danville LLAD No. 2025-1, pursuant to the Act and Proposition 218. If approved by
property owners in the Town, LLAD No. 2025-1 will replace existing LLAD No. 1983-1
commencing Fiscal Year 2025/26 and provide ongoing funding for the operation,
maintenance and servicing of landscaping, irrigation, parks, streetlighting, and associated
improvements that are the responsibility of the Town.
DISCUSSION
The Act and Proposition 218 require that the formation of a LLAD be supported by a
detailed engineer’s report prepared by a registered professional engineer certified by the
State of California. On November 19, 2024, Town Council awarded a contract to Francisco
and Associates to prepare the required engineer’s report and conduct the Proposition 218
proceedings corresponding to the formation of LLAD No. 2025-1. Francisco and Associates
has served as the Town’s LLAD Assessment Engineer for over twenty years. The proposed
Proposition 218 schedule during calendar year 2025 to form LLAD No. 2025-1 is as follows
(Council meetings in bold):
February 4th – Town Council adopts Resolution of Initiation for LLAD No. 2025-1.
March 18th – Town Council adopts Resolution of Intention and preliminarily
approves Engineer’s Report for LLAD No. 2025-1.
LLAD 2025-1 - Resolution of Initiation 3 February 4, 2025
April 4th (minimum of 45 days prior to public hearing) – Deadline to mail required
notices and ballots to property owners in the Town pursuant to Proposition 218.
May 20th – Town Council holds public hearing, declares balloting period closed,
and continues item to June 3rd meeting.
May 21st – Ballot tabulation and determination of results.
June 3rd – Town Council declares results of ballot tabulation and if property
owners are in favor of the formation of LLAD No. 2025-1, Town Council may adopt
Resolution confirming the assessments for LLAD No. 2025-1.
August 10th – Deadline to submit LLAD No. 2025-1 assessments to Contra Costa
County for placement on the Fiscal Year 2025/26 property tax roll.
If formation of LLAD No. 2025-1 is not approved by property owners in the Town, staff will
recommend Town Council initiate proceedings on June 3rd to approve the existing LLAD
No. 1983-1 assessments for Fiscal Year 2025/26 and hold a public hearing in July of 2025 as
required by the Act to place the assessments on the property tax roll.
PUBLIC CONTACT
Posting of the meeting agenda serves as notice to the general public.
FISCAL IMPACT
Adopting the attached resolution will initiate proceedings to form LLAD No. 2025-1. If
formation of LLAD No. 2025-1 is approved by Town property owners and Town Council,
the Town is expected to generate approximately $1.4 million in additional revenue for an
approximate total of $4.5 million in Fiscal Year 2025/26 to fund the ongoing operation,
maintenance, and capital replacement of Town landscaping, park, and streetlighting
improvements which would be escalated by the Consumer Price Index annually (not to
exceed 3%).
LLAD 2025-1 - Resolution of Initiation 4 February 4, 2025
RECOMMENDATION
Adopt Resolution No. 7-2025, initiating formation of Danville Landscaping and Lighting
Assessment District No. 2025-1 and ordering preparation of the required Engineer’s Report
pursuant to the Landscaping and Lighting Act of 1972 and Section 4 of Article XIIID of the
California Constitution.
Prepared and reviewed by:
Dave Casteel
Maintenance Services Director
Attachment: Resolution No. 7-2025
RESOLUTION NO. 7-2025
INITIATING FORMATION OF DANVILLE LANDSCAPING AND LIGHTING
ASSESSMENT DISTRICT NO. 2025-1 AND ORDERING PREPARATION OF THE
REQUIRED ENGINEER’S REPORT PURSUANT TO THE LANDSCAPING AND
LIGHTING ACT OF 1972 AND SECTION 4 OF ARTICLE XIIID OF THE
CALIFORNIA CONSTITUTION
WHEREAS, the Danville Town Council is proposing the formation of an assessment
district pursuant to the provisions of the Landscaping and Lighting Act of 1972
(commencing at Section 22500 of the California Streets and Highways Code), hereafter
referred to as the “Act”, to replace existing Danville Street Lighting and Landscape
Assessment District No. 1983-1; and
WHEREAS, the Danville Town Council is required by Section 22585 of the Act to adopt
a resolution initiating proceedings for the formation of the proposed assessment district,
describing the District and its improvements, specifying the distinctive designation of the
proposed assessment district as Danville Landscaping and Lighting Assessment District
No. 2025-1 (the “District”), and ordering the District Engineer to prepare and file a report
in accordance with Article 4 of the Act; and
WHEREAS, by its Resolution No. 76-2024, the Town of Danville (the “Town”) has
contracted with the firm of Francisco and Associates to serve as the District Engineer; and
WHEREAS, the improvements for the District are generally described as the operation,
maintenance and servicing of landscaping, irrigation, parks, lighting, and associated
facilities that are the responsibility of the Town; and
WHEREAS, Section 4 of Article XIIID of the California Constitution outlines the
procedures and requirements for imposing special assessments on properties within the
District, stating that only parcels receiving a "special benefit" from District improvements
can be assessed, and that the Town must identify all such parcels and provide proper
notice and ballots to property owners before holding a public hearing on the proposed
assessments for the District; and
WHEREAS, the Town shall not impose assessments for the District if there is a majority
protest. A majority protest exists if, upon the conclusion of the public hearing, ballots
submitted in opposition to the District assessments exceed the ballots submitted in favor
of the District assessments. In tabulating the ballots, the ballots shall be weighted
according to the proportional financial obligation of the affected property; and
WHEREAS, the Town intends on continuing levying assessments for existing Danville
Street Lighting and Landscape Assessment District No. 1983-1 if there is a majority
protest opposing the District assessments for District No. 2025-1; now, therefore, be it
Docusign Envelope ID: 0715C9D0-7931-4892-83D0-3FE78DDA8052
ATTACHMENT A
PAGE 2 OF RESOLUTION NO. 7-2025
RESOLVED, that the Danville Town Council hereby initiates proceedings for the
formation of Landscaping and Lighting Assessment District No. 2025-1 and directs the
District Engineer to prepare and file a report in accordance with Article 4 of the Act and
Section 4 of Article XIIID of the California Constitution.
APPROVED by the Danville Town Council at a regular meeting on February 4, 2025 by
the following vote:
AYES:
NOES:
ABSTAINED:
ABSENT:
________________________________
MAYOR
APPROVED AS TO FORM: ATTEST:
__________________________ ________________________________
CITY ATTORNEY CITY CLERK
Docusign Envelope ID: 0715C9D0-7931-4892-83D0-3FE78DDA8052
ATTACHMENT A