HomeMy WebLinkAboutPW Point San Pedro Road Median Landscaping Assessment District____________________________________________________________________________________
FOR CITY CLERK ONLY
Council Meeting: July 5, 2022
Disposition: Resolution 15104
Agenda Item No: 6.a
Meeting Date: July 5, 2022
SAN RAFAEL CITY COUNCIL AGENDA REPORT
Department: Public Works
Prepared by: April Miller
Public Works Director
City Manager Approval: ________
TOPIC: POINT SAN PEDRO ROAD MEDIAN LANDSCAPING ASSESSMENT
DISTRICT
SUBJECT: RESOLUTION CONFIRMING THE ENGINEER’S ANNUAL LEVY REPORT FOR
THE POINT SAN PEDRO ROAD MEDIAN LANDSCAPING ASSESSMENT
DISTRICT AND THE ASSESSMENT DIAGRAM CONNECTED THEREWITH
AND ORDERING THE LEVY AND COLLECTION OF ASSESSMENTS FOR FY
2022-23
RECOMMENDATION: Staff recommends that the City Council hold the public hearing and adopt
the resolution.
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. On June 6,
2022, City Council adopted three resolutions in accordance with this year’s Annual Engineer’s
Report and assessment process:
1.Resolution Directing Filing of Engineer’s FY 2022-23 Annual report
2.Resolution Approving Engineer’s FY 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
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 San Rafael City
limits, there are pockets of County unincorporated regions served by Point San Pedro Road,
therefore both the City and the County have a vested interest and responsibility in the medians.
As a part of the formation of the assessment district, the City of San Rafael and the County of
Marin entered into a Memorandum of Understanding (MOU) setting forth their respective rights
and duties with respect to the formation of the assessment district and also designating the City
of San Rafael as the lead agency.
The San Rafael City Council is responsible for filing and approving an Annual Engineer’s Report
for the assessment district, which includes a proposed levy and assessment for the upcoming
fiscal year 2022-23. Prior to the final approval of the report and the levy of assessments each
year, the City Council must hold a public hearing to provide members of the public with an
SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 2
opportunity to comment on the Annual Report and proposed assessment. Pursuant to the
Landscaping and Lighting Act of 1972, the purpose of the public hearing is to comply with
requirements of the California Streets and Highways code (sections referenced):
1. (Section 22628) Any interested person, prior to the conclusion of the hearing, may file a
written protest with the clerk, stating their objection to the assessment and Engineer’s
report as filed;
2. (Section 22630) During the hearing, the City Council may order changes in any of the
matters provided in the Engineer’s report;
3. (Section 22630.5) If there is a majority protest against the increase of the assessment
from any previous year, the proposed increase in the assessment shall be abandoned.
4. (Section 22631) If a majority protest has not been filed, the City Council may adopt a
resolution confirming the diagram and assessment, either as originally proposed or as
changed. The adoption of the resolution confirms the levy of an assessment for FY 2022-
23.
ANALYSIS: As presented at the June 6, 2022 City Council meeting, the Assessment District
intends to increase the total annual assessment by $5.34 for FY 2022-23 per Equivalent Benefit
Unit (EBU). The Equivalent Benefit Unit 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.
The total 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
Total operation and maintenance costs for FY 2022-23 is projected to be $199,994.
SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 3
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.
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
SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 4
% 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
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 resistant 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
SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 5
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. Conduct the public hearing and adopt the resolution, thus ordering the levy of
assessments for FY 2022-23.
2. Do not adopt the resolution, which will result in no levy of assessments for FY 2022-23.
This may result in an inability for the required maintenance on the Point San Pedro to be
performed, as there will be no revenue for the assessment district collected in the coming
year if the levy of assessments is not approved.
RECOMMENDED ACTION: Hold the public hearing and adopt the resolution.
ATTACHMENTS:
1. Resolution ordering the levy and collection of assessments for FY 2022-23
2. Public Hearing Notice
3. Engineer’s Annual Report FY 2022-23 (hyperlinked)
RESOLUTION NO. 15104
RESOLUTION OF THE SAN RAFAEL CITY COUNCIL CONFIRMING THE ENGINEER’S
ANNUAL LEVY REPORT FOR THE POINT SAN PEDRO ROAD MEDIAN LANDSCAPING
ASSESSMENT DISTRICT AND THE ASSESSMENT DIAGRAM CONNECTED
THEREWITH AND ORDERING THE LEVY AND COLLECTION OF ASSESSMENTS FOR
FY 2022-23
WHEREAS, the City Council, pursuant to the provisions of the Landscaping and
Lighting Act of 1972, being Part 2, Division 15 of the California Streets and Highways Code,
commencing with Section 22500 (the “1972 Act”), did by previous Resolution adopted on
June 6, 2022, initiate proceedings for the annual levy of assessments for the San Rafael Pt.
San Pedro Road Median Landscaping Assessment District (the “District”) for the fiscal year
commencing July 1, 2022 and ending June 30, 2023 (Fiscal Year 2022-23) for the special
benefits received by properties therein from the improvements related thereto, and set a
public hearing held on July 5, 2022; and
WHEREAS, an Engineer’s Report, entitled “City of San Rafael Pt. San Pedro Road
Median Landscaping Assessment District, Fiscal Year 2022-23 Engineer’s Annual Levy
Report”, a copy of which is on file in the Department of Public Works and incorporated herein
by reference, has been prepared, filed and presented to the City Council in connection with
the proposed annual levy of assessments for parcels within the District for Fiscal Year 2022-
23 as required by the 1972 Act and the Constitution; and
WHEREAS, at the public hearing, the City Council provided an opportunity for
interested parties to comment on the annual report, either in writing or orally, and the City
Council desires to proceed to levy and collect the annual assessments against parcels of land
within the District for Fiscal Year 2022-23, to pay the costs and expenses determined to be
of special benefit to the properties within the District, as described in the Engineer’s Report;
NOW, THEREFORE IT IS HEREBY RESOLVED that the City Council does hereby
confirm the diagram and assessments as set forth in the annual report of the Engineer of
Work and does hereby levy the assessments set forth therein for Fiscal Year 2022-23.
I, LINDSAY LARA, Clerk of the City of San Rafael, do 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 5th day of July 2022, by the following vote, to wit:
AYES: COUNCILMEMBERS: Hill, Kertz, Llorens Gulati & Mayor Kate
NOES: COUNCILMEMBERS: None
ABSENT: COUNCILMEMBERS: Bushey
LINDSAY LARA, City Clerk
Attachment 3 - 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
Legal No.
Marin Independent Journal
4000 Civic Center Drive, Suite 301
San Rafael, CA 94903
415-382-7335
legals@marinij.com
I am a citizen of the United States and a resident of the
County aforesaid: I am over the age of eighteen years ,
and not a party to or interested in the above matter. I am
the principal clerk of the printer of the MARIN
INDEPENDENT JOURNAL, a newspaper of general
circulation, printed and published daily in the County of
Marin, and which newspaper has been adjudged a
newspaper of general circulation by the Superior Court of
the County of Marin, State of California, under date of
FEBRUARY 7, 1955, CASE NUMBER 25566; that the
notice, of which the annexed is a printed copy (set in type
not smaller than nonpareil), has been published in each
regular and entire issue of said newspaper and not in
any supplement thereof on the following dates, to-wit:
06/24/2022
I certify (or declare) under the penalty of perjury that the
foregoing is true and correct.
Dated this 24th day of June, 2022.
PROOF OF PUBLICATION
(2015.5 C.C.P.)
STATE OF CALIFORNIA
County of Marin
Signature
PROOF OF PUBLICATION
0006679115
2070419
CITY OF SAN RAFAEL
1400 FIFTH AVENUE
CITY CLERK, ROOM 209
SAN RAFAEL, CA 94901
r.BP7-11/10/16 1