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HOLD PUBLIC HEARING FOR APPROVAL OF THE ANNUAL ENGINEER’S REPORT, FISCAL YEAR 2018-19 ANNUAL BUDGET, AND CONFIRM AND LEVY ASSESSMENTS FOR THE STOCKTON CONSOLIDATED STORM DRAINAGE MAINTENANCE ASSESSMENT DISTRICT 2005-1
recommended action
RECOMMENDATION
The City Council at its meeting on May 15, 2018 preliminarily approved and confirmed the Engineer’s estimate of costs and expenses of the Consolidated Storm Drainage Maintenance Assessment District 2005-1 and the annual assessments related thereto, and set a required public hearing for June 5, 2018.
It is recommended that the City Council now conduct a public hearing to consider public comment and testimony regarding the approval and adoption of the annual budgets and assessment rolls for the District.
After the public hearing, if a majority protest based on assessment amount does not exist, it is recommended that the City Council adopt a resolution to:
1. Overrule any and all public hearing protests or objections (including all written protests not withdrawn in writing before the conclusion of the public hearing) to the proposed levy of assessments in the District in each zone.
2. Approve and adopt the Stockton Consolidated Storm Drainage Maintenance Assessment District No. 2005-1 (District) Annual Engineer’s Report for the FY 2018-19, which contains the budget for each zone.
3. Confirm and levy the assessments for each zone as set forth in the report.
4. File the assessments or a copy thereof certified by the City Clerk or other City official, with the San Joaquin County Auditor and cause the assessments to be entered on the 2018-19 tax roll as set forth in the Annual Engineer’s Report on file with the City Clerk.
5. Approve the Annual Report providing for various Amendments to the several Zone Assessment Diagrams showing segregated parcels created since the last Annual Report and directing the City Clerk to deliver to the Superintendent of Streets of the City said assessment, together with all Amendments to the Assessment Diagrams attached with a certificate of such confirmation and of the date thereo, and that said Superintendent of Streets shall record all said Amendments to the Assessment Diagrams and assessment in a suitable book to be kept for that purpose.
6. Authorize after the recording of the assessment and the Amendments to the Assessment Diagrams in the office of the Superintendent of Streets, the City Clerk to file in the office of the County Recorder a copy of the Amendments to the Assessment Diagrams.
It is also recommended that the City Manager or his designee is authorized and directed to execute all documents, including, but not limited to, agreements and amendments.
It is further recommended that the City Manager be authorized to take appropriate and necessary actions to carry out the purpose and intent of this resolution.
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Summary
The Municipal Improvement Act of 1913 and Stockton Improvement Procedure Code, Part V, under which this District was formed, requires the annual Council approval of the Engineer’s Report, Budget, Assessment Rolls and annual approval to levy the corresponding annual assessments. The assessment district rates for Fiscal Year (FY) 2018-19 will remain at the same level as the FY 2017-18 rates.
If approved, the City Council’s action will adopt the Storm Drainage Maintenance Assessment District’s FY 2018-19 Annual Engineer’s Report, Budgets, and Assessment Rolls for the various zones within the District. The proposed FY 2018-19 assessment amount for each zone will remain the same as the prior year’s. 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.
DISCUSSION
Background
On July 26, 2005, the City Council adopted Resolution Number 05-0329 to establish an assessment district designated as the “Stockton Consolidated Storm Drainage Maintenance Assessment District No. 2005-1” and the creation and annexation of Zone 1 to be known as “Riverbend Zone 1.” Formation of the District was based on the provisions of the Municipal Improvement Act of 1913 (Act) and the Stockton Improvement Procedure Code, Part V (Stockton Code). Since then, 12 additional Zones have been formed and annexed to the District (Attachment A - District Zones Location Map).
The Act and Stockton Code contain provisions for the City to form an assessment district and annex zones to the district’s boundary for the maintenance and operation of improvements that impart a special benefit to an area. The purpose of this District is to provide funding for the operation, maintenance, and replacement of stormwater quality treatment devices that are required by the City’s Stormwater National Pollution Discharge Elimination System Permit (NPDES).
For this fiscal year, Siegfried of Stockton, California was authorized to prepare the FY 2018-19 Annual Engineer’s Report. A copy of the Annual Engineer’s Report was submitted to the City Clerk and is on file for review by the Mayor and City Council Members. On May 15, 2018, the City Council adopted and preliminarily approved the FY 2018-19 Annual Engineer’s Report, which includes the proposed budgets for the maintenance and operation of the improvements for each zone within the District, and the Assessment Rolls. The City Council’s action also set the public hearing for June 5, 2018.
Through this process, the District sets the annual assessments for each zone to be placed on the San Joaquin County tax roll for collection with the County real property taxes. These annual assessments also provide for other associated administrative costs including preparing an Annual Engineer’s Report and Assessment Roll.
Property owners are responsible for funding only those improvements in their zone. Each assessed parcel is assigned a dwelling unit equivalent factor or a per assessable acre factor. The dwelling unit equivalent factor for developed parcels is established in the original Engineer’s Report forming each zone, which has previously been approved by Council. A single-family residential lot is equivalent to one dwelling unit equivalent factor.
Present Situation
None of the proposed FY 2018-19 assessments exceed the allowed maximum annual assessment set in the original Engineer’s Report, 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, which was 3.2 percent for calendar year 2017. For FY 2018-19, a 3.2 percent increase has been applied to the FY 2018-19 maximum allowable assessments.
Proposition 218 provides the latitude to approve the maximum allowable assessment but 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/or emergencies, and complies with the requirements of Proposition 218. The proposed FY 2018-19 assessment amount for each Zone will remain the same as the prior year’s.
The proposed budget for each zone within the District includes 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. The maintenance scope of work includes vector control; weed abatement; rodent control; slope dressing; mowing; ripping; grading of the basin bottom (as needed); trash and debris pick-up and removal; cleaning of the structures, and sediment removal.
The proposed FY 2018-19 assessment amount for each zone will remain the same as the prior year’s. The operational budget amount for the Riverbend basin-Zone 1, however, will require an additional transfer from fund balance in the amount of $1,197 to cover the deficit between the current year assessment and the operational budget. Sufficient fund balance exists to cover the deficiency; therefore, staff recommends approving the full operating budget and the transfer of funds needed from fund balance-Zone 1.
The table below is a summary of the budget and per dwelling unit equivalent factor to be assessed for each zone of the District for both FY 2017-18 and FY 2018-19, as well as the Maximum Allowable Assessment amount for FY 2018-19.
|
Zone No. |
Zone Name |
2017-18 Rate Per Dwelling Unit Equivalent Factor |
2018-19 Rate Per Dwelling Unit Equivalent Factor |
2017-18 Assessment |
2018-19 Assessment |
Proposed FY 2018-19 Operational Budget |
FY 2018-19 Maximum Allowable Assessment |
|
1 |
Riverbend |
$37.64 |
$37.64 |
$24,529.08 |
$24,529.08 |
$25,726.50 |
$40,612.70 |
|
2A |
Cannery Park |
$6.76 |
$6.76 |
$6,660.16 |
$6,660.16 |
$6,660.16 |
$16,620.83 |
|
2B |
Cannery Park |
$23.92 |
$23.92 |
$14,083.38 |
$14,083.38 |
$14,083.38 |
$15,519.98 |
|
3 |
Simbad Estates |
$400.76 |
$400.76 |
$11,221.28 |
$11,221.28 |
$11,221.28 |
$22,856.12 |
|
4 |
Dama Estates |
$678.94 |
$678.94 |
$11,541.98 |
$11,541.98 |
$11,541.98 |
$29,832.11 |
|
5A |
Silver Springs & Gold Springs |
$113.30 |
$113.30 |
$30,538.88 |
$30,538.88 |
$30,538.88 |
$63,921.41 |
|
5B |
Silver Springs & Gold Springs |
$109.24 |
$109.24 |
$3,823.40 |
$3,823.40 |
$3,823.40 |
$5,085.85 |
|
6 |
Old Oak Estates |
$198.40 |
$198.40 |
$12,300.80 |
$12,300.80 |
$12,300.80 |
$19,730.26 |
|
7 |
Oakmore Meadows, Unit 3 |
$380.80 |
$380.80 |
$19,895.66 |
$19,895.66 |
$19,895.66 |
$21,293.26 |
|
8 |
Little Johns Creek North & Little Johns Creek South |
$358.38 |
$358.38 |
$22,577.94 |
$22,577.94 |
$22,577.94 |
$24,162.39 |
|
9 |
Malisa Manor |
$761.82 |
$761.82 |
$12,189.12 |
$12,189.12 |
$12,189.12 |
$25,001.12 |
|
10 |
Meadowlands Unit 2 |
$309.08 |
$309.08 |
$11,126.88 |
$11,126.88 |
$11,126.88 |
$31,500.72 |
|
11 |
Westlake Villages |
$3.78 |
$3.78 |
$11,067.50 |
$11,067.50 |
$11,067.50* |
$706,241.17 |
|
12 |
Moss Gardens |
$27.50 |
$27.50 |
$11,063.00 |
$11,063.00 |
$11,063.00 |
$67,468.06 |
|
13 |
ProLogis Park at Duck Creek |
$250.85** |
$250.85** |
$24,536.00 |
$24,536.00 |
$24,536.00 |
$67,785.61 |
*Until the related Stormwater assets for the Westlake Community are fully constructed and operational, the assessment amount will only include administrative costs.
**ProLogis Park at Duck Creek is the only zone within the District calculated on an assessable acre basis. The Assessments for Zone 13 are proportioned to the adjusted acreage for each parcel in Zone 13. The current assessable acreage is 97.81. The total Zone assessment is $24,536 resulting in a per acre assessment of $250.85.
The per dwelling unit equivalent factor varies for each zone and is dependent upon the improvements to be maintained and the number of dwelling unit equivalent factors.
The anticipated FY2018-19 fund balances for each zone in the Consolidated District are:
|
Zone No. |
Zone Name |
FY 2018-19 Anticipated Fund Balance |
|
1 |
Riverbend |
$176,335.56 |
|
2A |
Cannery Park |
$ 41,810.74 |
|
2B |
Cannery Park |
$161,006.18 |
|
3 |
Simbad Estates |
$ 79,072.50 |
|
4 |
Dama Estates |
$ 92,830.98 |
|
5A |
Silver Springs & Gold Springs |
$385,934.49 |
|
5B |
Silver Springs & Gold Springs |
$ 11,519.67 |
|
6 |
Old Oak Estates |
$ 68,963.55 |
|
7 |
Oakmore Meadows |
$110,835.10 |
|
8 |
Little Johns Creek North & South |
$122,949.11 |
|
9 |
Malisa Manor |
$ 94,420.38 |
|
10 |
Meadowlands |
$ 67,178.10 |
|
11 |
Westlake Villages |
$ 28,380.25 |
|
12 |
Moss Gardens |
$112,953.63 |
|
13 |
ProLogis Park at Duck Creek |
$174,692.84 |
This public hearing allows any interested person an opportunity to make a protest for each zone in the Annual Report, to the maximum annual assessment, to the actual FY 2018-19 assessment, to the proposed budget or to the proposed method and proportion of assessment either in writing or orally. A majority protest exists if more than fifty percent (50%) of the owners of the area of assessable lands within the District in each zone file a written or verbal protest. The required notice of this public hearing was published in The Record once, at least 10 days before the hearing date (published on May 24, 2018).
By approving the proposed resolution, the City Council will approve and adopt the Annual Engineer’s Report for the Fiscal Year 2018-19, which includes the Budget for each zone of the District and the Assessment Roll. This action will also confirm the levy and collection of the assessments set forth in the Annual Engineer’s Report for the District.
FINANCIAL SUMMARY
The proposed Consolidated Storm Drainage Maintenance Districts budget for FY 2018-19 is detailed in Attachment B. No changes have been made from the FY 2017-18 to the FY 2018-19 actual assessment rates for each zone.
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 is restricted by Proposition 218 and pay only the expenses related to the maintenance and operation of the specific Stormwater Quality Treatment Device(s) detailed in the original 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 specific zone as it imparts special benefit restricted to the properties of that area. District funds are segregated and cannot be used to operate, maintain, or support the activities of the stormwater, or any other utility at large.
Administrative and operational costs for the maintenance of the stormwater treatment basin in the Cannery Park Zone 2B are proportionately split with the City’s Stormwater Utility as the basin is also used for flood control purposes. Cannery Park Zone 2B is the only zone within the District that maintains a device with dual function.
There is no impact to the 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