INTERIM DEPT. DIRECTOR: PUBLIC HEARING TO RECEIVE TESTIMONY REGARDING THE FY 2017/18 ENCINITAS LANDSCAPE AND LIGHTING DISTRICT
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1 MEETING DATE: May 24, 2017 PREPARED BY: Christine Ruess, Sr. Management Analyst INTERIM DEPT. DIRECTOR: James G. Ross DEPARTMENT: Public Works CITY MANAGER: Karen P. Brust SUBJECT: PUBLIC HEARING TO RECEIVE TESTIMONY REGARDING THE FY 2017/18 ENCINITAS LANDSCAPE AND LIGHTING DISTRICT RECOMMENDED ACTION: Council take the following actions: 1. Conduct a Public Hearing to receive testimony regarding the FY 2017/18 Encinitas Landscape and Lighting District (ELLD) Annual Engineer s Report; and 2. Adopt City Council Resolution No , Resolution of the City Council of the City of Encinitas, California Renewing the Encinitas Landscape and Lighting District (Zones A, B, C, D, E, F, G & H), confirming the FY 2017/18 Engineer s Report and ordering the transmission of charges to the County Auditor for collection (Attachment 1). STRATEGIC PLAN: This item is related to the Organizational Effectiveness and Efficiency focus area of the Strategic Plan, to deliver efficient and effective services. FISCAL CONSIDERATIONS: There are no direct fiscal impacts associated with the staff recommendation. The ELLD is an established funding mechanism that requires annual renewal. The estimated capital and operating expenses for all eight zones for FY 2017/18 total $2,393,982. The total proposed revenue for all eight zones for FY 2017/18 is $2,084,571. Major sources of revenue include $1,135,190 in assessment fee revenue and $876,592 from property tax apportionment revenue. Revenues are not sufficient to cover the expenditures in several of the zones. Fund balances from the Encinitas Citywide, Village Park, Villanitas Zones and Encinitas Ranch will make up the difference between revenues and expenditures except for the Wiro Park Zone which requires a transfer of $14,000 from the General Fund which is included in the proposed FY 2017/18 budget. A detailed budget breakdown is included in the preliminary Engineer s Report (Attachment 2) for Encinitas Citywide Zones (Zones A,B,C), Village Park (Zone D), Villanitas (Zone E), Cerro Street (Zone F), Wiro Park (Zone G), and Encinitas Ranch Landscape and Lighting Zone (Zone H) Item 10A 1 of 29
2 BACKGROUND: Under the provisions of the 1972 Landscape and Lighting Act, the City formed the ELLD for the purpose of funding the operation, maintenance and improvement costs of public street lighting and landscaping. The ELLD consists of eight benefit zones. Zone A includes all assessable parcels within the District, and tracks and assesses the costs associated with district-wide street lighting, traffic signals and landscaping on major streets and thoroughfares. Zone B assesses the costs associated with localized street lighting in residential areas, and Zone C assesses the costs associated with localized street lighting in commercial areas. Zones D, E, F and G fund localized landscaping and park improvements approved as development or subdivision map conditions. Zone H funds street lighting, parks and landscaping improvements within the Encinitas Ranch specific plan area. On March 8, 2017, the Council adopted Resolution , directing the preparation and filing of the Encinitas Landscape and Lighting District Annual Engineer s Report. On April 19, 2017, the City Council adopted Resolution No , stating the Council s intention to renew the Landscape and Lighting District and setting a public hearing for May 24, ANALYSIS: The public hearing is the final step in the annual renewal of the Encinitas Landscape and Lighting District (Zones A, B, C, D, E, F, G and H). The hearing provides an opportunity for property owners to comment on the District and proposed assessments. At the close of the hearing, Council will determine whether to adopt Resolution , confirming the Annual Engineer s Report, renewing the District for FY 2017/18, and ordering the transmission of charges to the County Auditor for collection on the property tax bills. The attached Annual Engineer s Report (Attachment 2) details the proposed District expenditures for FY 2017/18, assessments, operating and capital reserves, and the methodology used to determine the individual assessments. No changes to the assessment rates are proposed for Zones A, B, C, D, E, F, G and H. In FY 2014/15, the assessment rates for Zones E and F were decreased to $0 due to adequate reserves and other revenue sources. Article XIIID of the California State Constitution (also known as Proposition 218) requires majority approval of the property owners through a notice and ballot procedure in order for assessment rates to be increased. Below are the proposed assessments for FY 2017/18. Benefit Zones FY 2016/17 Assessment FY 2017/18 Assessment Zone A District Wide Street Lights, Traffic Signals $5.22 $5.22 and Landscaping Zone B Localized Residential Street Lighting $9.90 $9.90 Zone C - Localized Commercial Street Lighting $2.18 $2.18 Zone D - Localized Landscaping (Village Park) $25.24 $25.24 Zone E - Localized Landscaping (Villanitas) $0.00 $0.00 Zone F - Localized Landscaping (Cerro Street) $0.00 $0.00 Zone G - Localized Landscaping (Wiro Park) $ $ Zone H - Localized Street Lights, Landscaping and Park (Encinitas Ranch) $ $ Item 10A 2 of 29
3 ENVIRONMENTAL CONSIDERATIONS: The action being considered by the City Council is exempt from the California Environmental Quality Act (CEQA) because it is not a project per Section 15378(b)(5) of the CEQA Guidelines. The action involves an organizational or administrative activity of government that will not result in the direct or indirect physical change in the environment. This item is not related to the Climate Action Plan. ATTACHMENTS: 1. City Council Resolution No , entitled Resolution of the City Council of the City of Encinitas, California renewing the Encinitas Landscape and Lighting District (Zones A, B, C, D, E, F, G & H), confirming the Engineer s Report and ordering the transmission of charges to the County Auditor for collection 2. FY 2017/18 Engineer s Report for the Encinitas Landscape and Lighting District for Zones A, B, C, D, E, F, G and H Item 10A 3 of 29
4 ATTACHMENT 1 RESOLUTION NO RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ENCINITAS, CALIFORNIA RENEWING THE ENCINITAS LANDSCAPE AND LIGHTING DISTRICT (ZONES A, B, C, D, E, F, G & H), CONFIRMING THE ENGINEER S REPORT AND ORDERING THE TRANSMISSION OF CHARGES TO THE COUNTY AUDITOR FOR COLLECTION The City Council of the City of Encinitas hereby resolves that: 1. Pursuant to Chapter 3 of the Landscape and Lighting Act of 1972, the City Council directed Harris & Associates, as Engineer of Work for the Encinitas Landscape and Lighting District, to prepare and file an annual report for Fiscal Year The Engineer of Work filed the annual report on April 19, 2017, and the City Council adopted its resolution of intention to levy and collect assessments within the assessment district for Fiscal Year and set a public hearing to be held at 6:00 p.m. on June 8, 2016 in the meeting place of the City of Encinitas, City Council Chambers, 505 S. Vulcan Avenue, Encinitas. Notice of this hearing was published in the Coast News on May 12, At the May 24 th Hearing, the City Council afforded every interested person an opportunity to make a protest to the annual report either in writing or orally, and the City Council has considered each protest. 4. The City Council hereby confirms the diagram and assessment as set forth in the annual report of the Engineer of Work, levies the assessment set forth therein for Fiscal Year , and orders the transmission of the charges to the County Auditor for collection. AYES: NAYS: ABSENT: ABSTAIN: ATTEST: PASSED AND ADOPTED this 24 th day of May, 2017, by the following vote to wit: Catherine S. Blakespear, Mayor City of Encinitas, California Kathy Hollywood, City Clerk Item 10A 4 of 29
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