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  Agenda Item   22.    
City Council Meeting
Meeting Date: 04/20/2021  
FROM: Bill Gallardo

Subject:
Annual Engineer's Report for Maintenance Districts Nos. 1, 2, 3, 4, 5, 6 and 7
RECOMMENDATION
Receive and approve the Annual Engineer's Report for Landscape and Lighting Maintenance Districts Nos. 1, 2, 3, 4, 5, 6 and 7 and adopt Resolution Nos. 2021-018 - 2021-024 of Intent to set a Public Hearing for each District on June 1, 2021, at 7:00 p.m.
BACKGROUND/DISCUSSION
As called for in the Landscape and Lighting Act of 1972, a yearly assessment is to be made for each Maintenance District. For City Council reference, the Districts are located on the attached map (Exhibit A). The estimated assessments for FY 2021-22 as detailed in the Engineer's Report are as follows:
Maintenance
District
2020-2021
Assessment
Per Lot Per
Year
2021-2022
Assessment
Per Lot Per
Year
Change in
Assessment
Per Lot Per
Year
%
Change
M.D. #1 $543.00 $543.00 0 0%
M.D. #2 $18.50 $18.50 0 0%
M.D. #3 $511.00 $519.18 $8.18 1.6%
M. D. #4 $12.00 $12.00 0 0%
M. D. #5 $942.97 $942.97 0 0%
M. D. #6 $1450.35 $1450.35 0 0%
M. D. #7 $305.56 $305.56 0 0%

Maintenance District #1 (American National - 103 Parcels) - On March 10, 2021, staff held a Zoom webinar for the homeowners of this District. Residents representing two parcels attended the virtual meeting. The total estimated costs for FY 2021-22 are $53,484. The total annual assessment amount for this District is currently $55,929. No change is recommended for FY 2021-22. The annual assessment will remain at $543 per parcel per year. Reserves as of June 30, 2020 are $10,545 which are 20% of the operational budget.

Maintenance District #2 (Baldwin - 297 Parcels) - The assessment for this District is for theme street lighting maintenance only. The Homeowners' Association maintains the common landscaped areas. Staff held a Zoom webinar for the residents on March 8, 2021, to discuss the coming year's budget. No homeowners attended. The total estimated costs for FY 2021-22 will be $7,638. The total annual assessment for this District is currently $5,495. No change is recommended in the annual assessment for this District during FY 2021-22. This will require the expenditure of $2,143.00 from the District's reserve fund. The annual assessment will remain at $18.50 per parcel per year. Reserves as of June 30, 2020 are $39,440, which are 516% of the operational budget.

Maintenance District #3 (Eagle Development - 188 Parcels) - Staff held a Zoom webinar for the homeowners on March 10, 2021. Residents representing four parcels attended the virtual meeting. Staff updated residents on future landscape improvements. The total estimated costs for FY 2021-22 are $140,077. The total annual assessment for this District is $96,068, or $511 per parcel per year, the maximum allowable assessment for FY 2020-21. Residents in attendance directed staff to increase the assessment by the CPI for the prior 12-month calendar year, per parcel per year increase to help build reserves to pay for needed improvements. The recommended assessment would increase to $97,605 or $519.18 per parcel per year, an increase of $8.18 per parcel per year. Reserves as of June 30, 2020 are $137,554 which are 98% of the operational budget.

Maintenance District #4 (Ponderosa - 230 parcels) - The assessment for this District is for theme street lighting maintenance only. The Homeowners' Association maintains the common landscaped areas. Staff held a Zoom webinar on March 8, 2021, to discuss the coming year's budget. No homeowners attended. The total estimated costs for FY 2021-22 are $3,978. No change is recommended in the annual assessment for this District during FY 2021-22. The annual assessment will remain at $12 per parcel per year. Reserves as of June 30, 2020 are $19,851 which is over 495% of the operational budget.

Maintenance District #5 (Konweiser - 113 Parcels) - On March 9, 2021, staff held a Zoom webinar for the homeowners to discuss the coming year's budget and any concerns regarding maintenance of the common areas. Residents representing two parcels attended the virtual meeting. The total estimated costs for FY 2021-22 are $131,107. The total annual assessment for this District is $106,555 or $942.97 per parcel per year, which is just under the maximum allowable assessment for FY 2018-2019. Reserves as of June 30, 2020 are $90,460, which are 69% of the operational budget.

Maintenance District #6 (Schmid Development - 135 Parcels) - This District is the largest of the seven Districts. It consists of 16 acres of common landscaped areas. Staff held a Zoom webinar on March 9, 2021 to discuss the coming year's budget and assessment. Homeowners representing seven parcels attended the virtual meeting. The total estimated costs for FY 2021-22 are $197,502. The total annual assessment for this District is $195,797 or $1,450.35 per parcel per year. No change is recommended in the annual assessment for this District during FY 2021-22. This will require an expenditure of $1,705.00 from the District's reserve fund. Reserves as of June 30, 2020 are $75,603, which are 38% of the operational budget.

Maintenance District #7 (Baywood Development - 96 Parcels) - Staff held a Zoom webinar on March 8, 2021 to discuss the coming year's budget and assessment. No homeowners attended. The meeting was held to solicit input into the assessment process. The total estimated costs for FY 2021-22 are $30,169. The current annual assessment for this District is $29,333 or $305.56 per parcel per year, which was the maximum allowable assessment for FY 2018-2019. No change is recommended in the annual assessment for this District during FY 2021-22. This will require the expenditure of $836.00 from the District's reserve fund. Reserves as of June 30, 2020 are $9,625, which are 32% of the operational budget.
COMMISSION/COMMITTEE RECOMMENDATION
This item was reviewed by the Finance Committee at their meeting on April 13, 2021 and recommended for City Council approval.
FISCAL IMPACT/SUMMARY
There will be no impact to the General Fund by this action. All funding for the maintenance of the Districts is provided for by separate assessments. In addition, the Districts' reimburse the General Fund for staff time.

As called for in the Landscape and Lighting Act of 1972, a yearly assessment is to be made for each Maintenance District. Staff held Zoom webinar meetings with the homeowners this year to discuss the coming year's budget and improvement projects. It is recommended that the Engineer's Report be accepted for the Landscape and Lighting Districts Nos. 1, 2, 3, 4, 5, 6 and 7 and that a Resolution of Intent be adopted setting a Public Hearing for each District on June 1, 2021, at 7:00 p.m.
RESPECTFULLY SUBMITTED:
William Gallardo, City Manager
Prepared by:   Bill Bowlus, Public Works Superintendent
Concurrence:  Tony Olmos, P.E., Public Works Director
Attachments
Exhibit A
Engineer's Reports LLMD 1-7
Resolution
Resolution
Resolution
Resolution
Resolution
Resolution
Resolution

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