HomeMy WebLinkAboutPW Point San Pedro Road Median Landscaping Assessment District____________________________________________________________________________________
FOR CITY CLERK ONLY
Council Meeting: June 6, 2022
Disposition: Resolutions 15084 x 15085 x 15086
Agenda Item No: 5.n
Meeting Date: June 6, 2022
SAN RAFAEL CITY COUNCIL AGENDA REPORT
Department: Public Works
Prepared by: Bill Guerin
Director of Public Works
City Manager Approval: ________
TOPIC: POINT SAN PEDRO ROAD MEDIAN LANDSCAPING ASSESSMENT
DISTRICT
SUBJECT: POINT SAN PEDRO ROAD MEDIAN LANDSCAPING ASSESSMENT DISTRICT
ANNUAL ASSESSMENT:
1.RESOLUTION DIRECTING FILING OF ENGINEER'S 2022-23 ANNUAL
REPORT
2.RESOLUTION APPROVING ENGINEER'S 2022-23 ANNUAL REPORT
3.RESOLUTION OF INTENTION TO ORDER IMPROVEMENTS AND SETTING A
PUBLIC HEARING ON THE ANNUAL ASSESSMENT FOR THE CITY COUNCIL
MEETING OF JULY 5, 2022.
RECOMMENDATION: Staff recommends that the City Council approve the following:
1.Adopt a resolution directing filing of Engineer’s FY 2022-23 Annual Report.
2.Adopt a resolution approving Engineer’s FY 2022-23 Annual Report.
3.Adopt a resolution of intention to order improvement and setting a public hearing on the
annual assessment for the City Council meeting of July 5, 2022.
BACKGROUND: In order to comply with provisions of the Landscaping and Lighting Act of 1972,
which governs this assessment district, the City Council must approve an Engineer’s report for
the Point San Pedro Median Landscaping Assessment District on an annual basis. Assessments
to be collected by the District will be allocated and levied annually after a public hearing, to be
held this year on July 5, 2022.
In 2011, the Point San Pedro Road Median Landscaping District was formed to generate revenue
to reconstruct, repair, and maintain the 29 median islands along Point San Pedro Road, from
Union Street to Biscayne Drive. While the medians themselves are located within the San Rafael
City limits, there are pockets of unincorporated County of Marin regions served by Point San
Pedro Road, and therefore both the City and the County have a vested interest and responsibility
in the medians. The original medians were constructed half a century ago, but over time their
SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 2
infrastructure eventually decayed to the point of needing replacement. Moreover, due to
significant staffing and budgetary cut-backs, landscaping maintenance for the medians prior to
the formation of the assessment district had been reduced to vegetation trimming to control
overgrowth. Over time, existing plants and irrigation infrastructure had deteriorated significantly
to the point that very little of the original landscaping remained, other than some of the trees and
vegetation that were able to survive with little water.
As a result, a group of property owners in close proximity to Point San Pedro Road (both within
the City limits of the City of San Rafael and in the immediate contiguous unincorporated area of
the County of Marin) organized an effort to form an assessment district to fund the capital costs
associated with re-construction and restoration of the landscaping within the Point San Pedro
Road medians, as well as the ongoing maintenance and operation of those improvements. As a
part of the formation of the assessment district, the City of San Rafael and unincorporated portions
of the County of Marin entered into a Memorandum of Understanding (MOU) in which the City of
San Rafael was designated as the lead agency.
Since the formation of the district, the City has worked closely with several community members
on the Point San Pedro Road Coalition’s Roadway Committee who have assisted not only in
recommendations and oversight of the medians, but have served as key community liaisons
between the City and the residents within the Assessment District. These community members
have served as the “citizen’s oversight” committee for the district. Department of Public Works
(DPW) Staff routinely meet with these representatives and provides updates on maintenance of
the medians and takes in feedback from the residents in the area. DPW staff also work closely
with those community members on key decisions on financial planning for the assessment district.
ANALYSIS: The annual assessment has two components:
1. Capital debt service assessment
This amount is to finance the debt service associated with the large capital costs of re-
constructing the medians in 2014. The total project cost was $1,703,245, which included
expenditures for design, construction, and construction management. The total amount
bonded for the capital portion of the district was $1,750,000.
The total annual debt service payment for the assessment district is outlined in the 20-
year debt service schedule in the Annual Engineer’s Report. The average annual debt
service is $144,942. When the district was formed, residents were given the option to pre-
pay the capital portion of the assessment, and some residents chose this option.
2. Operations and maintenance assessment
This portion of the assessment is intended to fund the annual operations and maintenance
portion of the assessment district. Operations and maintenance costs include:
• Monthly contractual maintenance for all 29 medians
• Landscaping repairs and plant replacement
• Irrigation system maintenance and repairs
• Utilities (water and electricity)
• Financial services for administration of assessment district (Engineer’s report)
• Annual fee charged by County of Marin Assessors’ Office for collection of
assessments
SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 3
Total operation and maintenance costs for FY 2022-23 is projected to be $199,994.
The Assessment District therefore has two funds: An Operation and Maintenance Reserve Fund
and a Capital & Debt Service Reserve Fund. The estimated Year End Fund balances are as
follows:
Fund 6-30-22 Fund Balance
(Projected)
Operation and Maintenance
Reserve Fund #234
$144,388.68
Capital & Debt Service
Reserve Fund #714
$221,000.00
The fund balance in the Operations and Maintenance Reserve Fund #234 may be used for regular
maintenance activities and for broader improvements. The Capital and Debt Service Reserve
Fund #714 is restricted for capital improvements related to the initial reconstruction of the
medians.
From FY 2013-14 to FY 2017-18, the total annual assessment stayed flat at $79.48. While the
assessment stayed flat, the revenue generated did not keep up with the actual operations and
maintenance costs for the 29 medians. The revenue generated under the $79.48 assessment for
operation and maintenance costs was $82,814 while the actual operational cost was closer to
$110,150. Year after year, the difference was made up by steady use of a modest Operation and
Maintenance Fund balance. Though there was the ability to increase the total assessment by 3%
each year, the City did not elect to bring forward an increase in prior years, due to input from the
citizen’s oversight committee (“committee”). The City and committee agreed to first get a better
handle on issues and actual costs associated with maintaining the relatively new medians to a
standard that meets the community’s expectations, prior to pursuing an increase.
In recent years, the City and the committee have made considerable progress on resolving
community concerns regarding maintenance expectations of the medians. Since FY 2018-19, the
City and committee have agreed on the need to raise the assessment annually up to the maximum
allowable rate in order to bring the revenues generated from the annual assessment closer to the
actual annual maintenance costs for the 29 medians.
While the District has reduced the gap between the revenue generated and expenses, there
remains a shortfall. Per the District formation documents, annual assessments can be increased
up to 3% or the value of the Consumer Price Index (CPI), whichever is greater. The CPI as of
February 28, 2022 for the San Francisco-Oakland-Hayward region, of which San Rafael derives
its inflation calculation, stood at 5.2%. Therefore, the City and committee are recommending a
rate increase of 5.2% to be applied for FY 2022-23. This increase in revenue will offset the
increased costs for maintenance and utilities (mostly water and electricity) for the District.
The assessment proposed for FY 2022-23 is the maximum allowable rate of $108.12 (considering
the allowed increase of the greater of local area CPI of 5.2% for FY 2022-23). The assessment
district does not need to return to the voters of the assessment district for approval of the increase
per Proposition 218.
SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 4
The FY 2022-23 assessment is composed of:
Debt Service Assessment (Not Prepaid)** $55.52 per EBU*
Non-Bonded Assessment (annual
Operation and Maintenance costs)
$52.60 per EBU*
Total FY 2022-23 Assessment $108.12 per EBU*
*EBU = Equivalent Benefit Unit method of assessment apportionment establishes a basic unit
(base value) of benefit and then calculates the benefit derived by each assessed parcel as a
multiple (or a fraction) of the basic unit. Details for how the EBU applies to other land uses, such
as apartments and businesses, is outlined in the Engineer’s Report.
** When the assessment district was first established property owners were allowed to pay a pre-
payment for the improvement cost. Parcels that have prepaid or paid off their full assessment lien
(bonded obligation) are no longer levied for the Debt Service Assessment, but will continue to pay
their proportionate share of the Non-Bonded Operation and Maintenance Assessment.
A four-year history of assessments is as follows:
FY 2018-19 FY 2019-20 FY 2020-21 FY 2021-22
FY 2022-23
(proposed)
Total Assessment $83.98 $96.88 $99.79 $102.78 $108.12
% Increase over prior year 6%** 15%** 3% 3% 5.2%
Operations & Maintenance
Revenue Generated*
$124,284 $129,551 $138,613 $150,107 $164,514
*Each year about 4% of assessments are uncollected, and therefore annual revenues are always
slightly lower than anticipated
**The increases in FY 2018-19 and FY 2019-20 assessments were greater than 3% due to “catch
up” increases allowed from prior years when the assessment was not increased.
The total proposed increase over last year’s rate is $5.34. The revenue generated from this
increase will be used entirely to support operation and maintenance costs of the district.
Operations and Maintenance Budget FY 2022-23
Monthly contractual maintenance $83,786
Landscaping Rehabilitation/Repair $11,500
Irrigation repairs $11,500
Utilities (Water + Electricity) $45,000
Engineer’s Report $11,200
County Fee $9,000
Total $171,986
This table and others can be found in the attached Engineer’s report. It is important to note that
all Point San Pedro Road Median Landscaping Assessment District fees collected are legally
restricted for use on the Point San Pedro medians and cannot be used for any other purpose.
It should also be noted that the budget for irrigation has been increased significantly for FY 2022-
23. Marin Municipal Water District (MMWD) has notified the City that due to current drought
conditions, the utility costs of irrigation, especially for high-water needs landscaping like that in
SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 5
place in the Pt. San Pedro medians, will increase significantly in coming years. Additionally, the
irrigation system in place for the medians is extensive in length and highly complex. The financial
cost associated with any leaking irrigation infrastructure will also be much higher in coming years
due to the drought compared to previous years.
Knowing the shifting climate conditions, and that future drought years are likely, the committee
will be working closely with the City staff to plan for strategic replacement of high-water needs
plants with more drought-tolerant landscaping. As replanting is needed and funds are available,
the committee will assist in selecting drought resist vegetation consistent with the comprehensive
landscaping plans for the medians.
FISCAL IMPACT: All operation and maintenance reserve fund revenues and expenses are
contained within the Point San Pedro Road Median Assessment District Fund (fund no. 234). All
debt service revenues and expenses are contained within the Point San Pedro Road Median
Assessment District Fund #714.
The Public Works Department does incur General Fund staff costs for personnel who execute
and manage the landscaping maintenance contract. There are also staff costs associated with
budgetary and financial management of the assessment district and coordination with the
consultant who prepares the annual Engineer’s report. Per the MOU from 2011, the City has
agreed to offset the City staff time associated with maintaining the assessment district as a City
contribution to the assessment district, at an approximate cost of $15,060. For FY 2022-23, the
bond value reduction is expected to reduce by approximately one percent of the value of total
funds, at cost of approximately $3,328. The County makes an annual financial payment to the
Assessment district as their contribution to the cross-jurisdictional district. For FY 2022-23, the
County payment will be $8,845.02, which will be deposited into the district’s Operations and
Maintenance fund.
COMMUNITY OUTREACH: The City continues to work closely with several community
representatives of the Pt. San Pedro Road Coalition Roadway Committee who have served as
the Citizen’s Oversight committee for the district.
The committee is in frequent and direct communication with the Public Works Department Parks
Supervisor who manages the median’s landscaping contractor. The committee has been a great
partner to the City; serving as the liaison to the community in relaying concerns and reporting
issues when they arise, as community members are often the first eyes on issues with the
medians. The committee also receives a weekly report from the maintenance contractor of work
done on the medians, and routinely utilizes it to respond to inquiries from residents.
Each spring, the City meets with committee members specifically to review the financials of the
district and discuss various strategies to ensure that the district remains financially solvent over
time.
After this meeting, the Committee members post an annual note to the community via NextDoor
and the Pt. San Pedro Road Coalition website updating residents on the district’s financial
situation and maintenance priorities.
OPTIONS:
The City Council has the following options to consider relating to this item:
1. Adopt the three resolutions as presented.
2. Provide direction to staff to modify any or all of the resolutions.
SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 6
3. Do not adopt the resolutions. If the resolutions are not adopted by the City Council, the
public hearing will not take place and the City will be unable to levy the annual assessment
against property owners within the Assessment District.
RECOMMENDED ACTION:
1. Adopt a resolution directing filing of Engineer’s FY 2022-23 Annual Report.
2. Adopt a resolution approving Engineer’s FY 2022-23 Annual Report.
3. Adopt a resolution of intention to order improvement and setting a public hearing on the
annual assessment for the City Council meeting of July 5, 2022.
ATTACHMENTS:
1. Resolution Directing Filing of Engineer’s Annual report FY 2022-23
2. Resolution Approving Engineer’s Annual Report FY 2022-23
3. Resolution of Intention to Order Improvements and Setting a Public Hearing on the Annual
Assessment for the City Council meeting of July 5, 2022
4. Engineer’s Annual Report FY 2022-23 (hyperlinked)
RESOLUTION NO. 15084
RESOLUTION OF THE SAN RAFAEL CITY COUNCIL DIRECTING
FILING OF ENGINEER’S ANNUAL REPORT FY 2022-23
POINT SAN PEDRO ROAD MEDIAN LANDSCAPING ASSESSMENT DISTRICT
(Pursuant to the Landscaping and Lighting Act of 1972)
_________________________________________________
THE CITY COUNCIL OF THE CITY OF SAN RAFAEL RESOLVES that:
1. CSW/Stuber-Stroeh Engineering Group, Inc. is designated by this
Council as the Engineer of Work for the Point San Pedro Road Median Landscaping
Assessment District, City of San Rafael, Marin County, California, and is hereby
directed to file with the City Clerk an annual report for fiscal year 2022-23 in accordance
with the provisions of the Landscaping and Lighting Act of 1972.
2. This resolution is adopted pursuant to Section 22622 of the Streets and
Highways Code.
I, LINDSAY LARA, Clerk of the City of San Rafael, hereby certify that the
foregoing resolution was duly and regularly introduced and adopted at a regular meeting
of the Council of said City on the 6th day of June 2022, by the following vote, to wit:
AYES: COUNCILMEMBERS: Bushey, Hill, Kertz, Llorens Gulati & Mayor Kate
NOES: COUNCILMEMBERS: None
ABSENT: COUNCILMEMBERS: None
LINDSAY LARA, City Clerk
RESOLUTION NO. 15085
RESOLUTION OF THE SAN RAFAEL CITY COUNCIL APPROVING
ENGINEER’S ANNUAL LEVY REPORT FY 2022-23
POINT SAN PEDRO ROAD MEDIAN LANDSCAPING ASSESSMENT DISTRICT
(Pursuant to the Landscaping and Lighting Act of 1972)
_________________________________________________
THE CITY COUNCIL OF THE CITY OF SAN RAFAEL RESOLVES that:
1. CSW/Stuber-Stroeh Engineering Group, Inc., as designated Engineer of
Work for Point San Pedro Road Median Landscaping Assessment District, has filed with
the City Clerk an Engineer’s Annual Levy Report for fiscal year 2022-23 in accordance
with the provisions of the Landscaping and Lighting Act of 1972.
2. The aforementioned Engineer’s Annual Levy Report, on file with the City
Clerk, is approved as filed.
I, LINDSAY LARA, Clerk of the City of San Rafael, hereby certify that the
foregoing resolution was duly and regularly introduced and adopted at a regular meeting
of the Council of said City on the 6th day of June 2022, by the following vote, to wit:
AYES: COUNCILMEMBERS: Bushey, Hill, Kertz, Llorens Gulati & Mayor Kate
NOES: COUNCILMEMBERS: None
ABSENT: COUNCILMEMBERS: None
LINDSAY LARA, City Clerk
1
RESOLUTION NO. 15086
SAN RAFAEL CITY COUNCIL RESOLUTION OF INTENTION TO ORDER
IMPROVEMENTS AND SETTING A PUBLIC HEARING ON THE ANNUAL
ASSESSMENT FOR THE CITY COUNCIL MEETING OF JULY 5th, 2022
POINT SAN PEDRO ROAD MEDIAN LANDSCAPING ASSESSMENT DISTRICT
(Pursuant to the Landscaping and Lighting Act of 1972)
___________________________________________________________
THE CITY COUNCIL OF THE CITY OF SAN RAFAEL RESOLVES that:
1. The City Council intends to levy and collect assessments within the
Point San Pedro Road Median Landscaping Assessment District, City of San
Rafael, Marin County, California, during the fiscal year 2022-23. The area of land
to be assessed is located in the City of San Rafael, Marin County.
2. In accordance with this Council’s resolution directing the filing of an
Engineer’s Annual Report, CSW/Stuber-Stroeh Engineering Group, Inc., Engineer of
Work, has filed with the City Clerk the report required by the Landscaping and Lighting
Act of 1972. All interested persons are referred to that report for a full and detailed
description of the improvements, the boundaries of the assessment district and the
proposed assessments upon assessable lots and parcels of land within the assessment
district.
3. The proposed assessment increases the assessment $2.99 from the
previous year, from $102.78 to $108.12 per EBU (Equivalent Benefit Unit), which is the
maximum allowable assessment amount for FY 2022-23.
4. On Tuesday, the 5th of July, 2022 at the hour of 7:00 o’clock P.M., the
City Council will conduct a public hearing on the question of the levy of the proposed
annual assessment. The hearing will be held live at the San Rafael City Council
Chambers and virtually through Zoom at the webinar location listed on the agenda online
2
at https://www.cityofsanrafael.org/departments/public-meetings/, as well as being
streamed to YouTube at www.youtube.com/cityofsanrafael.
5. The City Clerk is authorized and directed to give the notice of hearing
required by the Landscaping and Lighting Act of 1972 by publishing a copy of this
resolution once in the Marin Independent Journal, publication to be completed not less
than ten (10) days before July 5, 2022.
I, LINDSAY LARA, Clerk of the City of San Rafael, hereby certify that the
foregoing resolution was duly and regularly introduced and adopted at a regular meeting
of the Council of said City on the 6th day of June 2022, by the following vote, to wit:
AYES: COUNCILMEMBERS: Bushey, Hill, Kertz, Llorens Gulati & Mayor Kate
NOES: COUNCILMEMBERS: None
ABSENT: COUNCILMEMBERS: None
LINDSAY LARA, City Clerk
Attachment 4 - Engineer’s Annual Report FY 2022-23
https://storage.googleapis.com/proudcity/sanrafaelca/uploads/2022/06/2022-
06-01-PSP-Assessment-District-Annual-Engineers-Report-2019-10-018-2022-5-20-
redacted-6-1.pdf
