Loading...
HomeMy WebLinkAboutPalm Gate LLD Increase Assessmnt Balloting Svc-Willdan Fin SvcCITY OF PALM DESERT PUBLIC WORKS DEPARTMENT STAFF REPORT REQUEST. REQUEST AUTHORIZATION TO: BALLOT THE PALM GATE LIGHTING AND LANDSCAPE DISTRICT PROPERTY OWNERS TO INCREASE THE ANNUAL ASSESSMENT LEVY; EXPEND AN AMOUNT NOT TO EXCEED $9,500 FOR PREPARATION OF THE ENGINEER'S REPORT AND BALLOTING SERVICES WITH WILLDAN FINANCIAL SERVICES; LOAN AN AMOUNT NOT TO EXCEED $40,000 FOR LANDSCAPE IMPROVEMENTS; AND ESTABLISH A PROCEDURE TO RECAPTURE THESE EXPENDITURES FROM THE ANNUAL ASSESSMENT LEVY SUBMITTED BY: Mark Greenwood, P.E., Director of Public Works DATE: July 13, 2017 CONTENTS: Photos Property Survey Letter Vicinity Map Recommendation By Minute Motion, authorize: 1. Balloting of the Palm Gate Lighting and Landscape District (Palm Gate LLD) property owners to increase the annual assessment levy; 2. Use of General Funds in an amount not to exceed $9,500 for preparation of the Engineer's Report and balloting services with Willdan Financial Services; 3. Loan from the General Fund in an amount not to exceed $40,000 for landscape improvements, and staff to perform same, at the Palm Gate LLD; 4. Director of Finance to appropriate $49,500 from the General Fund to Account No. 1104614-4337001 for these expenditures; and 5. Finance Department to set up a procedure to recapture the City's loan via the annual Palm Gate LLD assessment levy. Staff Report Palm Gate LLD Annual Levy Page 2 of 3 July 13, 2017 Strategic Plan Obiective This is an operational function and, as such, does not impact the goals of the Strategic Plan. Background On May 11, 2017, staff requested City Council approval to remediate safety concerns caused by the lack of on -going maintenance by removing the 27 palm trees located along the perimeter of the Palm Gate development adjacent to Deep Canyon Road. The lack of maintenance has been on -going for many years, and is a direct result of this landscape and lighting district being underfunded. Over a long period of time, the dead palm fronds have accumulated on the top of the palm trees, and during windy conditions the dead fronds are dislodged and are damaging the adjacent properties. The City receives multiple calls each year about debris on the road and damage caused by these falling fronds. At that time, the City Council directed staff to research alternatives to removing all of the palm trees. Staff performed a cost analysis on two maintenance options that would each increase the annual levy and provide for either a basic level of service, or a standard level of service. These options, along with the option for no increase, were sent to the properly owners for consideration with an anonymous postcard survey (see attached survey letter). Staff also held a meeting that was attended by eight of the Palm Gate LLD property owners to answer any questions. The results of this survey are: five votes for an increase to cover the cost of basic service, five votes for an increase to cover the cost of standard service, one vote for both levels of increased service, and five votes for no increase. Because 68 percent of the responses received were in favor of increasing the annual assessment levy, staff recommends retaining the services of Willdan Financial Services at a cast of $9,500 to proceed with formal balloting for an increase in the annual assessment levy. Based on the informal survey results, which were evenly split between the basic and standard levels of service, staff will review the expense projections and will calculate an integrated level of service. Therefore, the formal ballot will contain two options: increase the annual assessment level to the integrated level of service, or no increase. The time frame for preparation of the Engineer's Report, the formal balloting and tabulation process, and the final public hearing declaring the results is approximately five to six months. If the home owners formally vote for an increase, Willdan Financial Services will provide the new assessment amount to the tax assessor's office. In the interim, staff is requesting that the City Council approve a loan to the Palm Gate LLD in an amount not to exceed $15,000 to immediately proceed with the removal of the 13 Mexican fan palms, and pruning of the 14 California fan palms to alleviate safety concerns. This $15,000 loan would be deemed as part of the proposed overall $40,000 loan. If an increase in the annual assessment levy is approved via the balloting Staff Report Palm Gate LLD Annual Levy Page 3 of 3 July 13, 2017 process, low maintenance trees and/or shrubs, and a freshening of the decomposed granite will be performed. Both levels of increased maintenance include the repayment of a $40,000 loan to the City over a period of 15 years, or a potentially longer period of time. If the balloting results in an increase to the annual assessment levy, the increased collection would not take effect until Fiscal Year 2018-19. Fiscal Analvsiss Any loan from the General Fund to the Palm Gate LLD will be reimbursed from the annual assessment levy over a period of time, which could exceed 15 years. PreparBy Depart t Head: Ran; Nov landscape Supervisor Ma reenwood, P.E. Director of Public Works ant M. Moore, Director of Finance Approval: 6E uri Aylaian, City Manager U Example of the 13 Mexican fan palms to be removed Example of the 14 California fan palms to be pruned CITY 91 P0LM DESERT 73-5 TO FRED WARING DRIVE PALM DESERT, CALIFORNIA 9226o-2$78 YEL: 760 346-o6n Inromciryofpulmde I,Iorg May 26, 2017 Dear Property Owner Our records indicate that you own property within the Palm Gate Lighting and Landscape District (LLD). Properties in the LLD pay an annual assessment for landscape and other maintenance, which is provided through a contract managed by the City of Palm Desert. The LLD consists of the parcels located east of Deep Canyon Road, and north of Fred Waring Drive on Coral Bells Circle, Daylily Circle, and Moss Rose Drive. Also included are the landscaped parkways adjacent to the development on Deep Canyon Road (see attached map). Both the street lighting and landscaped areas were installed as part of your residential development and the ongoing maintenance of these improvements benefits your property and others within the LLD. The property owners in the LLD were balloted in fiscal year 200412005 and again in 2009 regarding an increase in their maximum assessment rates to pay for the proposed renovation and upgrade of the existing landscape improvements. The results from both ballots indicated that a majority of owners opposed an increase. Therefore, the assessment was not increased, and the existing improvements have since been maintained at a level of service that can be paid for with available assessment revenues. Following is a breakdown of the current levies. Total Annual Levy Collected FY 2016/17 $3,185.70 ($86.10 per parcel) Administrative Costs (1,182.21) Maintenance (850.00) Palm Tree Pruning (850.00) Utilities 230.00 Balance Transferred to Reserve $73.49 Due to increases in the minimum wage, utility rates, and unforeseen maintenance costs such as vandalism and weather related maintenance (i.e., palm trees struck by lightning), the amount available for Reserve funds is minimal. When unforeseen maintenance is required, both the Reserve funds and any funds not yet expended in the current year are transferred to cover the costs. This has depleted the available funding for services such as palm tree pruning. As a result, maintenance has been deferred. Over the years, property owners (both in the LLD and adjacent developments) have contacted the City inquiring about aesthetic and safety issues posed by the 27 palm trees in the common areas. Due to these safety concerns, staff submitted a staff report to the City Council on May 11, 2017, requesting approval to remove the palms trees. The LLD Palm Gate LLD - Gauge Interest in Increasing Annual Levy May 26, 2017 Page 3 property owners were notified prior to the City Council meeting and, while most of the owners agreed that safety is a concern, there was opposition to the removal of all of the palm trees. The City Council then directed staff to present multiple solutions for the property owners' consideration. Staff is proposing the following three options: Increase Levv to Cover Basic Level of Service: Included in the Basic level would be removal of the 13 Mexican fan palms; pruning of the 14 California fan palms; installation of minimal landscape material such as decomposed granite and boulders; and installation of small scale, low maintenance plant material. Costs include repayment of a $40,000, 15-year loan from the City to the LLD to accomplish the improvements as soon as possible. Proposed Annual Levy Collected Annual Loan Repayment Administrative Costs Maintenance Palm Tree Pruning Utilities Balance Transferred to Reserve $9,986.21 ($269.90 per parcel) (2,667.00) (1,219.21) (3,600.00) (1,000.00) 1500.00 $0.00 Increase Levv to Cover Standard Level of Service: Included in the Standard Level would be all of the services described in the Basic Level of Service above as well as the creation of a long-term capital improvement reserve to deal with unforeseen costs such as vandalism and weather related events. Costs include repayment of a $40,000, 15-year loan from the City to the LLD to accomplish the improvements as soon as possible. Proposed Annual Levy Collected Annual Loan Repayment Administrative Costs Maintenance Palm Tree Pruning Utilities Balance Transferred to Reserve $12,950.00 ($350.00 per parcel) (2,667.00) (1,219.21) (3,600.00) (1,000.00) 1 51 • 00.00) $2,963.79 No Increase in the Levv: Maintenance would remain at its current level and additional plant material would not be added. The future level of maintenance would decrease to offset rising maintenance costs. The City would provide a $16,500 loan to the LLD to mitigate safety issues by removing the 13 Mexican fan palms and pruning the 14 California fan palms. This loan would be repaid to the City over a period that could exceed 15 years. We understand that this matter can be difficult to explain via a letter. Therefore, a meeting of the property owners in the LLD has been scheduled for June 13, 2017, at 4 p.m., in the Administrative Conference Room at City Hall. City staff will be available to answer any questions or address concerns. CITY 01 P011 0 1 S I I I 0—.-- Palm Gate LLD —Gauge Interest in Increasing Annual Levy May 26, 2017 Page 3 Please complete the survey on the enclosed, postage paid postcard and return it to the City by June 23, 2017. The surVGv does not represent a formal vote. It is simply an effort to determine if residents of the LLD are interested in pursuing an increase in the level of landscaping and maintenance through an increase in the annual levy. If enough residents support an increase, staff will proceed to a formal vote. We encourage your participation in this survey, and hope we can work together for the benefit of your neighborhood. If you have any questions, please feel free to contact me at (760)776-6450. Sincerely,_ � Randy Cha Landscape Supervisor RC/bl Enclosures (as noted) CITY If P I I M 015fII 0—.-- DR-J J IL Z a W z Q Q Z � o W J W LL 0 I I Palm Gate Lighting and Landscape District Subject Area FRED WARING-DR— i CITY OF PALM DESERT PUBLIC WORKS DEPARTMENT STAFF REPORT REQUEST: REQUEST AUTHORIZATION TO USE GENERAL FUNDS IN AN AMOUNT NOT TO EXCEED $16,500 FOR THE REMOVAL OF 27 PALM TREES ON THE PALM GATE LIGHTING AND LANDSCAPE DISTRICT PROPERTY, AND ESTABLISH A PROCEDURE TO RECAPTURE THE EXPENDITURE FROM THE ANNUAL ASSESSMENT LEVY SUBMITTED BY: Mark Greenwood, P.E., Director of Public Works DATE: May 11, 2017 CONTENTS: Photos �G#,TltdEaLflTfl G `�_� u/� IJ rrio�r9 t€i2:r{)fiCi1]I.'ap F Recommendation a * Continued to the with-siaff By Minute Motion: directed to explore alternatives other than removing all palm trees and work with property owners in the Assessment We riot o fi d a mutually beneficial solo i n 5-0 1. Authorize the use of t�ianerarf Funs in an amount not to exceed 16,500— for the removal of 27 palm trees on the Palm Gate Lighting and Landscape District (Palm Gate LLD) property; and 2. Authorize the Finance Department to set up a procedure to recapture the City's expenditure via the annual Palm Gate LLD assessment levy. Funds are available in Account No. 1104614-4337001, Repair/Maintenance Medians. Background The 27 palm trees that are outside the perimeter landscape of Deep Canyon Road in the Palm Gate LLD have only had the seed pods removed annually for many years due to the lack of funds collected by the Palm Gate LLD. Because of this, the dead palm fronds have accumulated on the top of the palm trees, and during windy conditions the dead fronds are dislodged and are damaging the adjacent properties. The City receives multiple calls each year about debris on the road and damage caused by these falling fronds. Palm Gate LLD is an underfunded landscape and lighting district, and the levies received do not cover all of the maintenance costs. The annual Palm Gate LLD levy is $3,185.70, which covers $1,182.21 for administration costs, and $1,930.00 for direct costs. The allocation of the direct costs is $850.00 for maintenance, $850.00 for palm tree pruning, and $230.00 for utilities. The remaining $73.49 is transferred into a Reserve Fund Collection, which as of June 30, 2016, had an estimated Reserve Balance of $323.00. Staff also contacted the Finance Department, and they have indicated that no funds are available for the Palm Gate LLD in other accounts. Staff Report Removal of 27 Palm Trees at Palm Gate LLD Page 2 of 2 May 11, 2017 The amount collected covers only monthly maintenance such as removing debris from the sidewalk, litter control, weed control, and removal of the palm seed pods. In 2009, surveys were sent to the homeowners in Palm Gate LLD to gauge interest in the possibility of increasing the annual levy to cover necessary maintenance. The residents of the Palm Gate LLD voted against increasing the annual levy. In order to resolve the on -going maintenance issue, staff recommends the removal of all 27 palm trees at the Palm Gate LLD. Staff estimates the cost to remove the palm trees and grind out the stumps to be approximately $16,500. Staff recommends using all available Palm Gate LLD Reserve Balance funds with the City funding the balance of the cost. Once the trees are removed, the water meter will be removed and maintenance costs will be re-evaluated. This will eliminate certain maintenance items funded by the levy, and the savings will be used to repay the City for the cost to remove the palm trees. It is estimated that the payback period for the City to recoup the advanced funding could exceed 15 years. The payback will be reflected on the annual levy provided to each Palm Gate LLD homeowner. While it is not staffs' intention to lower the landscape standards for the landscape and lighting districts, it is staffs' opinion that this situation has reached the point where concern for public safety and the potential damage to adjacent, uninvolved properties outweighs aesthetic concerns. This action will not set a precedent for a lower level of maintenance at the other landscape and lighting districts within the City. Fiscal Analysis: The use of General Funds for the removal of the 27 palms at the Palm Gate LLD will be reimbursed from the annual assessment levy over a period of time, which could exceed 15 years. Prepared By: DeWm¢nt/Head Randy Chav z, andscape Supervisor Mark Gr wlood, P.E, i V JlVo2iLrectorof Finance Approval: Aylaia�n,— City Manager /bl 67 Example of property damage at uninvolved, adjacent property Example of property damage at uninvolved, adjacent property