| | | | | | | | 
AGENDA REPORT
|
| | | | | | | | DATE:
| July 20, 2021
| TO:
| To: The Chair and Members of the Paradise Valley Maintenance and Monitoring District (PVMMD) Board
| FROM:
| Stefan T. Chatwin, PVMMD Manager
| | SUBJECT: | Resolution PVMMD 2021-05 of the Paradise Valley Maintenance and Monitoring District Board Approving the 2021-2022 Supplement to Engineer’s Report, As Modified, and Ordering the Levy of Assessment for the Paradise Valley Maintenance and Monitoring District |
|
| | | | | | | | | RECOMMENDED ACTION | | Adopt resolution. |
|
| | | | | | | | | STATEMENT OF ISSUE | | The adoption of this resolution will approve the 2021-2022 Supplement to Engineer’s Report, as modified, and provide for the levy and collection of the annual assessments within Paradise Valley Areas “I”, “K”, and “L” for geologic monitoring, inspection, and repair within the Paradise Valley Maintenance and Monitoring District. |
|
| | | | | | | | | DISCUSSION | On July 6, 2010, the Paradise Valley Maintenance and Monitoring District (PVMMD) was formed and the City Council appointed itself as the PVMMD Board (“Board”). The PVMMD was formed to monitor, inspect, repair, and fund issues associated with geologic hazards upslope of the Paradise Valley Areas “I”, “K”, and “L” Subdivisions to protect homes from threat of landslides. Formation of the PVMMD was a requirement for the developer.
On July 20, 2010, the PVMMD Board approved the Plan of Control and Engineer’s Report for the District. The Plan of Control defines the physical boundaries and serves as the guidance document for the PVMMD. The Engineer’s Report provides additional detail of the PVMMD's funding, budget and the need for the accrual of substantial reserves to provide for the repair and maintenance of a potentially large geological event.
Funding for the PVMMD is based on an assessment from each residential lot within the PVMMD, and such funding is collected and used in connection with the Paradise Valley Plan of Control. The initial assessments were approved in accordance with Proposition 218 requirements on October 5, 2010 and set at $940 for single-family residential units and $470 for each unit in Areas “I” and “L” (medium-density residential) with an annual adjustment to reflect the percentage change in the San Francisco-Oakland-San Jose Consumers Price Index for All Urban Consumers.
On July 20, 2020, PVMMD residents expressed to the Board their concerns regarding the district’s cash reserves and the annual assessment increases. The Board directed staff to perform an in-depth review of the district’s financial and operational activities. During FY 2020-2021, staff and two district resident representatives formed an ad hoc district review committee to accomplish the directives given by the Board. The review committee developed the FY 2021-2022 budget, collaborated in a request for qualifications process to select a new geotechnical engineering consultant, Cal Engineering & Geology (CE&G), and drafted a scope of work for CE&G to conduct a full evaluation of the district’s Plan of Control, Engineer’s Report, and 2018 Reserve Fund Study. Additionally, CE&G will assist staff with determining the appropriate assessment and cash reserve levels based upon the ten-year geologic and operational history of the district’s existence. The agreement for this work was finalized on April 20, 2021, and the work is anticipated to be complete by September 2021.
On June 1, 2021, the Board adopted Resolution No. PVMMD 2021-03 which preliminarily approved the Supplement to the Engineer’s Report and provided notice of a public hearing to consider granting final approval of said report and to order the levy and collection of FY 2021-2022 assessments of $1,158.95 per annum for single-family (low density) residential units and $579.22 per annum for medium-density residential units. The proposed assessment rates reflect no increase from the Fiscal Year (FY) 2020-2021 rates.
Staff made several modifications to the “District Budget” section of the Supplement to the Engineer’s Report that was preliminarily approved on June 1, 2021. These modifications include updates to the FY 2020-2021 projections to more accurately reflect known revenue and expenditures as of June 7, 2021, and the addition of actual expenditures for FY 2019-2020 and FY 2020-2021, at the request of PVMMD residents. These modifications to the Supplement to the Engineer’s Report were made for informational purposes only and are not required by Division 17 of the California Public Resources Code which governs geologic hazard abatement districts.
On July 6, 2021, the Board held a public hearing to consider approving the Supplement, as modified, and to consider ordering the levy and collection of FY 2021-2022 assessments. Following the public hearing, the Board directed staff to further modify the Supplement and to bring back to the Board a resolution that orders the levy and collection of assessments at the reduced rates of $878 per annum for single-family (low density) residential units and $439 per annum for medium-density residential units as described on page 3 of the PVMMD Reserve Fund Study prepared by Engeo in 2018. The reduced rates cause an overall budget deficit of approximately $46,000 which will be backfilled by available fund balance.
The adoption of this resolution will grant final approval of the 2021-2022 Supplement to the Engineer’s Report, as modified, and order the levy and collection of the FY 2021-2022 assessments rates of $878 per annum for single-family residential units and $439 per annum for medium-density residential units.
|
|
| | | | | | | | | FINANCIAL IMPACT | | The proposed revenue for this district is $176,352 which includes assessments of $161,552 and interest of $14,800. |
|
| | | | | | | | | PUBLIC CONTACT/ADVISORY BODY RECOMMENDATION | N/A
|
|
| | | | | | | | | ALTERNATIVE ACTION | | If the Board has any questions regarding the adoption of this resolution, this item may be rescheduled until the next Board meeting to allow staff to provide the necessary backup. However, not approving this resolution may prevent the district from collecting assessments for the 2021-2022 tax year. |
|
| | | | | | | | | STAFF CONTACT | Chris Lewis, Management Analyst
(707) 428-7089
clewis@fairfield.ca.gov
|
|
| | | | | | | | | COORDINATED WITH | City Attorney's Office
|
|
| REVIEWERS: | | Reviewer | Action | Date | | Alexander, Amber | Approved | 7/9/2021 - 11:21 AM |
|
|