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APPROVE THE ANNUAL ENGINEER’S REPORT AND PROPOSED BUDGET FOR THE STOCKTON CONSOLIDATED STORM DRAINAGE MAINTENANCE ASSESSMENT DISTRICT 2005-1
recommended action
RECOMMENDATION
It is recommended that the City Council adopt a Resolution to approve the Annual Engineer’s Report for the 2015-2016 Fiscal Year annual assessments for the Stockton Consolidated Storm Drainage Maintenance Assessment District 2005-1, to provide preliminary approval of the proposed budgets for each zone, and to set a Public Hearing for June 9, 2015.
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Summary
If approved, this action will approve the Annual Engineer’s Report and will preliminarily approve the Fiscal Year (FY) 2015-16 budget for each Zone of the Consolidated Storm Drainage Maintenance District, and set a Public Hearing date for June 9, 2015. Annual approval of the budget and Engineer’s Report is required by the Municipal Improvement Act of 1913 and the Stockton Improvement Code, Part V. A copy of the FY 2015-16 Annual Engineer’s Report is on file in the City Clerk’s Office.
DISCUSSION
Background
On July 26, 2005, the City Council adopted Resolution 05-0392 to establish an assessment district designated as the “Stockton Consolidated Storm Drainage Maintenance Assessment District No. 2005-1” (District) and creation and annexation of Zone 1, known as “Riverbend Zone 1.” The formation of this District was based on the provisions of the Municipal Improvement Act of 1913 (Act) and the Stockton Improvement Procedure Code (Stockton Code). Since then, 12 additional Zones have been formed and annexed to the District. Attachment A is a map depicting the location of each of the Zones within the District.
The Act and Stockton Code contain provisions for the City to form an Assessment District and annex zones to the District’s boundaries for the maintenance and operation of improvements that impart a special benefit to an area. The purpose of the District is to provide funding for the operations, maintenance and replacement of stormwater quality treatment devices that comply with the City’s Stormwater Quality Control Plan to meet the City’s Stormwater National Pollutant Discharge Elimination System Permit.
An Annual Engineer’s Report has been prepared for the District and submitted to the City. The Engineer’s Report has determined the actual assessments for Fiscal Year 2015-2016 for all the Zones within the District and for each separate property within those Zones. The City Council is required to hold a Public Hearing to approve these assessments so they can be included on the San Joaquin County tax roll for collection. Attachment B contains a summary of the proposed budgets for each Zone within the District.
Siegfried Engineering was authorized to prepare the FY 2015-16 Annual Engineer’s Report. The Annual Engineer’s Report determines the annual assessments that are to be approved following a Public Hearing, which are then put on the San Joaquin County tax roll and collected with the county property taxes. These annual assessments provide funding for the inspection, operation, maintenance, repair, and replacement of the improvements in each Zone and other associated administrative costs, including preparing the Annual Engineer’s Report and assessment roll. The Annual Engineer’s Report contains a budget for each Zone. The budget details the operation, maintenance, and administrative cost for each Zone.
The property owners are responsible to fund only those improvements within their Zone. Each assessed parcel is assigned a dwelling unit equivalent factor, or a per assessable acre factor. A single-family residential lot is equivalent to one dwelling unit equivalent factor. The dwelling unit equivalent factor for other classifications of developed parcels is determined according to a formula set out in the initial Council approved Engineer’s Report for that Zone.
Present Situation
None of the proposed FY 2015-16 assessments exceed the allowed Maximum Annual Assessment set in the original Engineer’s Reports, which were approved by landowner ballots, following the requirements of Proposition 218, and accepted by Council as part of the formation and annexation proceedings. Proposition 218, enacted in 1996, requires proposed assessments be approved by ballot procedure by the property owners affected by the assessments.
The Engineer’s Report forming each Zone included the provision for an annual escalator on the assessments in an amount equal to the greater of either 3.0 percent or the annual increase as shown in the Local Consumer Price Index for the San Francisco-Oakland-San Jose All Items, All Urban Users, as published by the Bureau of Labor Statistics for a similar period of time, which was 2.5 percent for 2015. For FY 2015-16, a 3.0 percent increase has been applied to the FY 2014-15 maximum allowable assessments for the calculation of the FY 2015-16 maximum allowable assessment.
Proposition 218 provides the latitude to approve the maximum allowable assessment, or to collect a lesser amount based on projected expenditures. Approving the maximum allowable assessment, but only assessing the amount needed for the projected expenses allows the latitude to collect the maximum assessment in the event of unanticipated expenses and complies with the requirements of Proposition 218.
Staff has determined that the maximum allowable assessments do not need to be collected in all of the Zones in FY 2015-16. The assessments to be collected in each Zone cover the costs of administration, operation, and maintenance incurred by the City for each Zone. The actual amount assessed is a unique percentage for each Zone based on the actual anticipated costs. Anticipated costs differ for each Zone according to the number, type/model and maintenance requirements of the improvements within each Zone. The actual assessments are based on the amounts needed for operations, maintenance and reserve. This amount is described as a percentage of the maximum assessment and is a different percentage for each Zone. This percentage description is not the same as the calculation for the maximum allowable assessment which is noted in the table below.
The proposed budget for each Zone within the District include engineering fees for the preparation of the annual engineer’s report and tax rolls; attorney’s fees; estimated cost of maintenance work; City of Stockton administrative costs; County costs to collect the assessments on the tax roll; replacement reserve costs; and a contingency amount.
City Administrative costs include the staff salary expenses to provide oversight of the preparation of the annual Engineer’s Report and tax rolls, oversight of maintenance service contracts, coordination of device inspections and maintenance schedules, and management of District finances.
The maintenance scope of work for those Zones within the District that have stormwater treatment basins includes: vector control; weed abatement; rodent control; slope dressing; mowing; ripping; disking; and grading of the basin bottom (as needed); trash and debris pick-up and removal; cleaning of the basin structures; and sedimentation relocation. The maintenance scope of work for those Zones within the District that have underground stormwater treatment vault filtration systems includes: pumping fluids from the vaults; removing solids and accumulated sedimentation from the bottom of the units to prevent discharge to receiving waterways.
In 2012 the City conducted an extensive analysis on the type, model, and anticipated service life expectancy of each of the Stormwater Quality Treatment Devices maintained within the District to determine annualized amount of reserve that needs to be collected for future replacement of the Stormwater Quality Treatment Devices. The target replacement reserve amounts have been inserted into the proposed budgets for FY 2015-16 to be collected as part of the assessment amounts.
The following table is a summary of the budget and per dwelling unit equivalent factor to be assessed for each Zone of the District.
|
Zone No. |
Zone Name |
2014-15 Rate Per Dwelling Unit Equivalent Factor |
2014-15 Assessment |
Proposed 2015-16 Rate Per Dwelling Unit Equivalent Factor |
Proposed 2015-16 Budget |
FY 2015-16 Maximum Allowable Assessment |
|
1 |
Riverbend |
$35.48 |
$23,121.46 |
$36.56 |
$23,825.27 |
$36,844.32 |
|
2A |
Cannery Park |
$ 6.37 |
$6,275.90 |
$6.56 |
$ 6,463.12 |
$15,089.88 |
|
2B |
Cannery Park |
$11.94 |
$7,029.88 |
$12.32 |
$ 7,253.66 |
$14,081.38 |
|
3 |
Simbad Estates |
$377.04 |
$10,557.12 |
$389.06 |
$10,893.68 |
$20,734.82 |
|
4 |
Darma Estates |
$640.00 |
$10,880.00 |
$659.16 |
$11,205.72 |
$27,063.54 |
|
5A |
Silver Springs & Gold Springs |
$106.80 |
$28,786.87 |
$110.00 |
$29,649.40 |
$57,991.54 |
|
5B |
Silver Springs & Gold Springs |
$102.98 |
$3,604.30 |
$106.06 |
$ 3,712.10 |
$4,613.33 |
|
6 |
Old Oak Estates |
$187.04 |
$11,598.48 |
$192.64 |
$11,943.68 |
$17,889.03 |
|
7 |
Oakmore Meadows, Unit 3 |
$358.96 |
$18,754.58 |
$369.70 |
$19,315.72 |
$19,317.22 |
|
8 |
Little Johns Creek North & Little Johns Creek South |
$337.80 |
$21,281.40 |
$347.92 |
$21,918.96 |
$21,919.84 |
|
9 |
Malisa Manor |
$718.14 |
$11,490.24 |
$739.62 |
$11,833.92 |
$22,680.97 |
|
10 |
Meadowlands Unit 2 |
$296.92 |
$10,689.12 |
$300.08 |
$10,802.88 |
$28,632.77 |
|
11 |
Westlake Villages |
$3.56 |
$10,423.36 |
$3.68 |
$10,774.72 |
$640,688.88 |
|
12 |
Moss Gardens |
$25.95 |
$10,427.36 |
$26.70 |
$10,741.14 |
$61,205.88 |
|
13 |
ProLogis Park at Duck Creek |
$236.46* |
$23,128.00 |
$243.54 |
$23,821.00 |
$61,494.71 |
*ProLogis Park at Duck Creek is the only Zone within the District with assessments calculated on an assessable acre basis. The assessments for Zone 13 ProLogis Park are spread in proportion to the adjusted area for each parcel in Zone 13. The current assessable acreage is 97.81. The maximum assessment is $61,494.71 resulting in a per acre maximum assessment of $628.72. The actual assessment is $23,821 resulting in a per acre actual assessment of $243.54.
The anticipated FY 2014-15 ending fund balances for the Zones are:
|
Zone No. |
Zone Name |
FY 2014-2015 Anticipated Fund Balance |
|
1 |
Riverbend |
$155,430 |
|
2A |
Cannery Park |
$ 33,406 |
|
2B |
Cannery Park |
$114,064 |
|
3 |
Simbad Estates |
$ 67,378 |
|
4 |
Dama Estates |
$ 80,291 |
|
5A |
Silver Springs & Gold Springs |
$326,830 |
|
5B |
Silver Springs & Gold Springs |
$ 6,854 |
|
6 |
Old Oak Estates |
$ 56,315 |
|
7 |
Oakmore Meadows |
$ 78,884 |
|
8 |
Little Johns Creek North & South |
$ 81,249 |
|
9 |
Malisa Manor |
$ 80,970 |
|
10 |
Meadowlands |
$ 66,567 |
|
11 |
Westlake Villages |
$ 21,341 |
|
12 |
Moss Gardens |
$103,684 |
|
13 |
ProLogis Park at Duck Creek |
$136,962 |
The FY 2015-16 Annual Engineer’s Report for the District is on file with the City Clerk and available for viewing by the public. The report contains detailed information on the budget for each Zone, assessment amounts, and a complete description of improvements required to be maintained. A copy has been distributed to the Mayor and each City Councilmember under separate cover memorandum dated April 22, 2015.
The required notice of public hearing will be published in The Record once, at least 10 days before the public hearing (to be published by May 30, 2015).
FINANCIAL SUMMARY
The proposed Consolidated Storm Drainage Maintenance Assessment District budget for FY 2015-16 is detailed in Attachment B. The accompanying resolution recommends preliminary approval of this budget with final approval with the City’s FY 2015-16 Annual Budget to be presented to Council on June 23, 2015.
The City makes no financial contributions to the District. All fees, costs and expenses incurred are paid from the proceeds of the annual assessments to be levied and collected on the San Joaquin County tax roll. The use of the funds collected within the various Zones of this District are restricted by Proposition 218 and will be used to pay only the expenses related to the maintenance and operation of the specific stormwater quality treatment device(s) detailed in the Engineer’s Report for each Zone. The funds collected from the property owners of a Zone can only be used for work on the device(s) in that Zone as it imparts a special benefit restricted to the properties of that Zone. District funds are segregated and cannot be used to operate, maintain, or support the activities of the stormwater system, or any other utility at large.
Administration and operational costs for the maintenance of the stormwater treatment basin in Cannery Park 2B will be proportionately split with the City’s Stormwater Utility in FY 2015-16 as the basin is also used for flood control purposes.
There is no impact to the City’s General fund or any other unrestricted fund as a result of taking the recommended actions.
Attachment A - District Zones Location Map
Attachment B - Summary of Zone Budgets