REPORT TO THE CITY COUNCIL July 24, 2014 FROM: SCOTT L. MOZIER, PE, Director Public Works Department BY: SCOTT KRAUTER, PE, Assistant Director Public Works Department, Street Maintenance Division SUBJECT ..Title HEARING to consider the proposed Annual Assessment for the City of Fresno Landscaping and Lighting Maintenance District No. 1 (Citywide) 1. RESOLUTION confirming the diagram and assessment and levy of annual assessment, 2014-2015, for Landscaping and Lighting District No. 1 ..Body RECOMMENDATIONS Staff recommends the City Council: 1. Adopt a resolution confirming the diagram and assessment. 2. Levy and collect the annual assessments for Landscaping and Lighting Maintenance District No. 1. EXECUTIVE SUMMARY The Landscaping and Lighting Maintenance Act of 1972 requires an annual hearing and levy of assessments for the City of Fresno Landscaping and Lighting Maintenance District No. 1 (LLMD). Due to the limitations created by the passage of Proposition 218, the assessment collected ($703,000) does not fully capture the cost of maintaining the landscaped easements along the streets within the District at this time. As was the case in Fiscal Year 2014, it is anticipated that the City will need to utilize Community Sanitation funds to augment the cost of ongoing maintenance. Today's hearing is to allow opportunity for public comment about the LLMD and for the Council's approval of the annual assessment. BACKGROUND On March 22, 1983, the City Council adopted Resolution No. 83-93 ordering the formation of Assessment District No. 89 (District), subsequently renamed LLMD. The District was formed to recover the City's costs of maintaining the landscaping within public rights-of-way and easements adjacent to certain existing subdivisions. The District is now comprised of 145 subdivisions with 14,870 individual assessments. The landscaping improvements are maintained by Public Works Department from funds derived through the assessments levied by the District. These assessments will partially fund the cost of landscaping over the next year. The maintenance rate has remained unchanged since 1997 due to the constraints placed by California Proposition No. 218. The assessments do not cover the costs to maintain any street medians, frontage road islands, utility easements, trails, bike paths, and green ways. On June 6, 2014, the Engineer's Report was filed in the City Clerk's Office and has been available for public review. On June 19, 2014, the City Council adopted Resolution No. 2014-93 indicating its intention to levy and collect the annual assessments for properties within the District, and set today's public hearing. The purpose of today's hearing is to allow all property owners affected by the District an opportunity to give public testimony regarding their assessments and for the Council to adopt the Resolution Approving the Engineer's Report and Levying Annual Assessments. At this time, we have received no letters of protest from District property owners. Today's public hearing has been duly noticed and the attached Resolution has been reviewed and approved as to form by the City Attorney's Office. ENVIRONMENTAL FINDINGS By the definition provided in the California Environmental Quality Act Guidelines Section 15378 this hearing 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 hearing does not include a bid or award of a construction or services contract. FISCAL IMPACT Adoption of the recommended resolution will levy assessments totaling $703,000 that will be used to partially fund the cost of maintaining the District's landscaped areas. In FY14 the Public Works Department used $28,400 in Community Sanitation funds to maintain a minimum two to three month service level in LLMD landscape area. It is anticipated that Community Sanitation funds will again be needed in FY2015 to maintain a minimum service levels. In the event the City Council elects not to confirm the assessments for FY 2015, the maintenance effort could be funded using General Fund, gas tax, Measure C/flexible, Community Sanitation Funds, or a combination thereof. The Council could also choose to terminate the service. Attachments: Vicinity Map Resolution