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HOLD A PUBLIC HEARING TO ANNEX TERRITORY AND TO FORM A NEW ZONE IN THE STOCKTON CONSOLIDATED STORM DRAINAGE MAINTENANCE ASSESSMENT DISTRICT NO. 2005-1
recommended action
RECOMMENDATION
The City Council, at its meeting on September 18, 2018, adopted a Resolution of Intention to Annex Territory to a Municipal Improvement District and the Formation of a Zone for the Maintenance and Operation of Storm Drainage Improvements, Providing for Annual Assessments for the Costs and Expenses Thereof, Approving a Proposed Boundary Map and Appointing Engineer of Work (the “Resolution of Intention”), and set a required Public Hearing for November 6, 2018.
It is recommended that the City Council conduct a public hearing to consider public comment and testimony regarding the annexation of territory to and the formation of a new zone in the Stockton Consolidated Storm Drainage Maintenance Assessment District No. 2005-1 (the “District”).
After the public hearing, if a majority protest based on the Resolution of Intention 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 Overrule any and all public hearing protests or objections (including all written protests not withdrawn in writing before the conclusion of the public hearing) to the Resolution of Intention.
2. Approve annexing the territory to Stockton Consolidated Storm Drainage Maintenance Assessment District No. 2005-1, Calaveras Estates IV and forming Zone 14 therein, to maintain and operate storm drainage improvements.
3. Specify that the public interest would be served by establishing Zone 14 and levying annual assessments for the costs to maintain and operate the storm drainage improvements.
4. Confirm and finally approve the proposed boundary map and Engineer’s Report and order recording of the assessment diagram.
It is also recommended that the City Manager or his designee be authorized and directed to execute all documents, including, but not limited to, agreements and amendments.
It is further recommended that the Resolution authorize the City Manager to take appropriate and necessary action to carry out the purpose and intent of the Resolution.
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Summary
In accordance with Stockton Municipal Code Chapter 13.20 Stormwater Quality Control Criteria Plan (SWQCCP), the Calaveras Estates IV, Zone 14 development is required to construct a stormwater quality treatment device. To fund the ongoing operation and maintenance of this device, it will be necessary to form a new zone in the District. All of the owners of the property subject to assessment for the cost of the annual operation, repair, replacement, and maintenance of the storm drain improvements signed and filed with the City Clerk of this City written consents for the annexation of territory. The cost of the annual operation and maintenance of the improvements are hereby referred to Northstar Engineering Group, Inc., Modesto, California, as the Engineer of Work for this District (the “Engineer of Work”), and the Engineer’s Report is attached (Attachment A) for review and approval. Staff recommends that Council approve the proposed Resolution.
DISCUSSION
Background
Calaveras Estates IV, Zone 14 consists of approximately 8.19 acres, including 40 residential lots. The project is located at the north end of Alvarado Ave., bound on the north by the Calaveras River, on the south by existing residential, on the west by existing residential, and on the east by Union Pacific right-of-way as shown on the Assessment Diagram (Attachment B).
The following resolution was adopted by the Council on September 18, 2018. This resolution provided the actions necessary to iniate proceedings for annexation of territory to the District and the formation of Calaveras Estates IV, Zone 14.
Resolution No. 2018-09-18-1108 Resolution of Intention to Annex Territory to a Municipal Improvement District and the Formation of a Zone (Stockton Consolidated Storm Drainage Maintenance Assessment District No. 2005-1, Calaveras Estates IV, Zone 14) for the Maintenance and Operation of Storm Drainage Improvements, Providing Annual Assessments for the Costs and Expenses Thereof, Approving a Proposed Boundary Map, and appointing an Engineer of Work (Northstar Engineering Group, Inc.).
The Engineer’s Report, including initial annual assessment of cost for each unit, was provided to the City Council on September 18, 2018.
A Notice of Public Hearing and Ballot procedure were mailed to the afftected property owner in compliance with Proposition 218 requirements. On file with the City Clerk are the Certificate of Mailing, the Notice of Public Hearing, the Assessment Ballot Procedure, and Property Owner Assessment Ballot.
Formation of Zone 14 is conducted pursuant to the Municipal Improvement Act of 1913 (Act) and the Stockton Improvement Procedure Code (Stockton Municipal Code).
To comply with the SWQCCP and NPDES permit requirements, the Calaveras Estates IV, Zone 14 subdivision proposed to use a Storm Filter Vault System by Contech Stormwater Solution, Inc. The Storm Filter concrete vault system is a stormwater treatment device approved by the City of Stockton SWQCCP for treating stormwater runoff from this project site.
Present Situation
As part of the Conditions of Approval for any development project, the Owners/Developers/ Successors-in-Interest (ODS) are required to install certain public stormwater quality improvements and provide operations and maintenance services for the proposed treatment features. Calaveras Estates IV, Zone 14 is being created within the existing District to provide funding for the continued operation, maintenance and replacement costs of the proposed stormwater quality improvements (storm filter). The funding for Zone 14 will be provided through an annual assessment based on the stormwater runoff from individual parcels. The annual budgets for such tasks will be presented each year to the City Council for approval, with the initial annual assessment of $410.16 (per parcel) in FY 2019-20 for Calaveras Estates IV, Zone 14.
The formation of the District was approved and adopted by the City Council on July 26, 2005, and Calaveras Estates IV, Zone 14 will become part of this District by approving the above resolutions. The maximum annual assessment includes a yearly increase, which is the greater of three percent (3.00%), or the yearly increase of the Consumer Price Index (CPI) if required by increased maintenance costs.
This formation proceeding is being conducted pursuant to the Act and the Stockton Municipal Code. Ballots have been mailed to the existing property owner to comply with Proposition 218 requirements. The ballots will be tabulated and results announced at the conclusion of this Public Hearing. In tabulating the ballots, they will be weighted according to the proportional financial obligation of the affected properties. Provided the ballots cast in favor of the formation of Zone 14 exceed those cast against, a resolution overrulling all protests, forming Zone 14, approving the Engineer’s Report, and approving a maximum annual assessment calculated in term of dollars of assessments is then avaliable for the City Council’s consideration at the conclusion of the Public Hearing.
FINANCIAL SUMMARY
The City of Stockton has no financial contribution related to the annexation to the District, the formation of Zone 14, or the annual maintenance costs. All fees and other costs and expenses incurred are payable solely by the annual tax roll by the owner/developer of the property in the proposed district.
This annexation will result in approval of a maximum assessment. The actual FY 2019-2020 levy on developed parcels will be determined and budgeted during the annual Stockton Consolidated Storm Drainage Maintenance District 2005-1 budget development process.
Attachment A - Engineer’s Report
Attachment B - Assessment Diagram