REPORT TO THE CITY COUNCIL Date: June 19, 2014 FROM: SCOTT L. MOZIER, PE, Director Public Works Department BY: SCOTT KRAUTER, PE, Assistant Director Public Works Department SUBJECT ..Title Initiate Proceedings and Declare Intention to Levy the Annual Assessment for the City of Fresno Landscaping and Lighting Maintenance District No. 1 (Citywide) ..Body RECOMMENDATIONS Staff recommends the City Council: 1. Adopt a resolution initiating proceedings for the annual levy of assessment. 2. Adopt a resolution of intention to levy and collect the annual assessments. EXECUTIVE SUMMARY The Landscaping and Lighting Maintenance Act of 1972 requires an annual Engineer's Report and levy of assessments for the City of Fresno Landscaping and Lighting Maintenance District No. 1 (LLMD). The LLMD provides $703,000 for maintenance of the City landscaping easements along the streets adjacent to the 145 City subdivisions that are included in this particular maintenance district. By adopting the resolutions, the Council will begin the levy process, approve the Engineer's Report, and set the required public hearing for July 24, 2014 at 10:00 a.m. Staff recommends approval of these resolutions to continue to collect assessments and operate the LLMD landscape maintenance functions. BACKGROUND On March 22, 1983, the Council adopted Resolution 83-93 ordering the formation of Assessment District 89 (District) subsequently renamed LLMD No. 1. The District was formed to recover the City's costs of maintaining the landscaping within the public rights-of-way and easements adjacent to existing and newly developed subdivisions. The District is comprised of 145 subdivisions with 14,870 individual assessments. The staff report includes the enclosed vicinity map showing the location of the subdivisions included in the LLMD. The landscaping improvements are maintained from funds derived through assessments levied by the LLMD. These improvements are generally limited to "back-up" and "side-on" treatments primarily on major streets and do not include the maintenance of landscaping in median islands or frontage road islands. The assessments also do not cover the costs to maintain pocket parks, utility easements, trails, bike paths, and greenways. The District was formed pursuant to the Landscaping and Lighting Act of 1972 which requires that a noticed public hearing be held before August 10th of each year in order to levy the annual assessments for continued maintenance and related expenses. The assessments will remain the same as in FY2013-FY2014 due to the constraints placed by the approval of California Proposition No. 218 in November of 1996. Prior to 1996, the Council could increase the assessments for maintenance annually to compensate for the increased cost of operations. However, after 1996 rates in the LLMD assessments have not been increased; so, the current assessments 18 years later are still based on 1996 maintenance costs. A special registered voter election would be required in order to increase the amount of the assessments. Currently staff is evaluating the feasibility of an election to increase the special tax rate and fund maintenance improvements. The attached Resolution of Intention sets the required public hearing for July 24, 2014 at 10:00 a.m. in the City Council Chamber. A notice stating the date and time of the hearing will be published in the Fresno Business Journal a minimum of ten days prior to the scheduled hearing. An individual notice to each property owner is not required by the Landscaping and Lighting act of 1972 if there is no increase in the assessment. ENVIRONMENTAL FINDINGS By the definition provided in the California Environmental Quality Act Guidelines Section 15378 this item does not qualify as a "project" and is therefore exempt from the California Environmental Quality Act requirements. LOCAL PREFERENCE Local preference was not considered because this action does not include a bid or award of a construction or services contract. FISCAL IMPACT The Public Works Department has begun subsidizing the LLMD services using Citywide, non-district, Community Sanitation funds starting in the FY 2012 budget. However, limited Community Sanitation funds and an abundance of non-maintenance District landscapes prevents the City from providing significantly more permanent staff for field landscape services in the LLMD in FY 2015. Attachments: 1. Resolutions (2) 2. Exhibit A - Vicinity Map 3. Exhibit B - Description of Existing Improvements