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HomeMy WebLinkAbout _ 4.11(e)--Reso for SSMD 01-25 Salt Creek Unit 4 to set public hearing GI �" Y C� F � � �- ' � ° � � i � CITY OF REDDING �� REPORT TO THE CITY COUNCIL MEETING DATE: July 15, 2025 FROM: Michael Webb, Public Works ITEM NO. 4.ll(e) Director ***APPROVED BY*** ie ael � iiEali� oaks L)arector 7;'11242� t�s�a a �, ss � eF 7/3/202� mwebb@cityofredding.org btippin@cityofredding.org SUBJECT: 4.11(e)--Resol�ution of Intention to form Sanitary Sewer Maintenance District (SSMD) O1-25, Salt Creek Unit 4 Recommendation Adopt Resolution of Intention to form Sanitary Sewer Maintenance District (SSMD) 01-25, Salt Creek Unit 4 Subdivision, and approve the following: (1) The Engineer's Report as filed with the City Clerk; (2) Confirmation of the map of the assessment district contained in the Engineer's Report; (3) Mailing of notices and ballots; and (4) Setting the Public Hearing and Election for September 2, 2025, at 6:00 p.m., in the City Council Chambers located at 777 Cypress Avenue, Redding, California, regarding the formation of Salt Creek Unit 4 Subdivision into SSMD 01-25 pursuant to the Improvement Act of 1911, Chapter 26, Maintenance Districts, Streets and Highways Code Section 5820, et seq. and Government Code 53753(b). Fiscal Impact Generally, Sanitary Sewer Maintenance Districts (SSMD) are self-supporting, and there are no �scal impacts to the City of Redding's (City) General Fund. Alternative Action The City Council (Council) may choose to decline to create a new district and direct staff to make changes to the Engin�er's Report. This alternative will require fmding an alternative funding source to provide the required maintenance so as not to become a General Fund obligation. Background SSMD O1-25 is being formed to eomply with the conditions of approval for the Salt Creek Unit 4 Subdivision (AMND-201'7-00160 / 5-15-07 / PD-11-07) located off Lower Springs Road north of Highway 299. A conventional gravity sewer system is i�npraetieable for this subdivision; therefore, Condition of Approval No. 65 requires the developer to create an SSiVID to fund the Report to Redding City Council July 8, 2025 Re: 4.11(e)--Reso for SSMD 02-25 Salt Creek Unit 4 to set public hearing Page 2 operation and maintenance costs of a sanitary sewer lift station with the formation, levy, and collection of assessments being pursuant to the Improvement Act of 1911. Small lift stations that serve only a specific development are not commonly used in the public system; therefore, a SSMD will ensure that the maintenance responsibilities are borne by the parcels to be created by the Salt Creek Unit 4 Subdivision and not by other utility customers. The proposed formation will affect a total of 70 proposed residential units. The estimated cost of SSMD O1-25 for Fiscal Year 2026-2� is $23,31� which includes maintenance expenses, administrative expenses, and an allowable district reserve as detailed in Part B of the attached Engineer's Report. The formation will affect a total of 70 proposed residential lots (benefit units). The proposed assessment per benefit unit is $333.10. To provide for this formation, the Council needs to adopt the attached resolution accomplishing the following: 1. Declaring the Council's intention to form Sanitary Sewer Maintenance District 01-25; 2. Approval of the Engineer's Report; 3. Confirmation of the map of the assessment district contained in the Engineer's Report; and 4. Approval of the mailing of notices and ballots to the property owners within the Salt Creek Unit 4 Subdivision to approve the formation of Sanitary Sewer Maintenance District 01-25, approving the proposed annual assessment of $333.10 per benefit unit, and setting the public hearing for September 2, 2025. Should the Council approve the resolution; staff will move forward with formation procedures to establish SSMD 01-25. Pursuant to the Improvement Act of 1911, the Council must find that there is no protest against formation by more than half of the owners within the district. Therefore, if a simple majority of the ballots returned are in favor of formation, the Council may proceed to form the district. If the formation is approved, results will be provided to the Shasta County Assessor's Office and the new levy will be placed on the owners' property tax bills in December 2026. The assessment for SSMD O1-25, will include a contingency for the Council to annually consider a cost escalation tied to the "20 Cities Construction Cost Index" from the most recent March Engineering News Record effective July 1, 2027, and every July thereafter. Envir�onmental Review This activity is not a project as defined by the California Environmental Quality Act. No further action is required. Council Pr�ioNity/City Manager Goals • Budget and Financial Management — "Achieve balanced and stable 10-year Financial Plans for all funds." Attachments ^Resolution ^Location Map Report to Redding City Council July 8, 2025 Re: 4.11(e)--Reso for SSMD 02-25 Salt Creek Unit 4 to set public hearing Page 3 SSMD 1-25 Engineer's Report RECORDING REQUESTED BY: City of Redding WHEN RECORDED RETURN TO: City Clerk City of Redding 777 Cypress Avenue Redding CA 96001 RESOLUTION NO. 2025- SANITARY SEWER MAINTENANCE DISTRICT 01-25 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF REDDING: (1) DECLARING ITS INTENTION TO FORM SANITARY SEWER MAINTENANCE DISTRICT O1-25. (2) CONFIRMING THE MAP OF THE ASSESSMENT DISTRICT AND APPROVING THE ENGINEER'S REPORT. (3) APPROVING THE MAILING OF NOTICES AND BALLOTS. (4) SETTING A PUBLIC HEARING DATE OF SEPTEMBER 2, 2025 AND ELECTION REGARDING SANITARY SEWER MAINTENANCE DISTRICT O1-25. WHEREAS: A. The Engineer has filed his Report with the City Clerk setting forth a full and detailed description of the improvements, the boundaries of the proposed assessment district and any zones therein, any bonds or notes to be issued, and the proposed assessments upon assessable lots and parcels of land within the proposed district. B. The purpose of the proposed district is to fund the operation and maintenance costs of the sanitary sewer pump station as conditioned by the Sa1t Creek Unit 4 Subdivision (AMND- 2017-00160, 5-15-07, PD-11-07) Conditions of Approval. Condition 65 requires that the developer creates a sanitary sew�r maintenance district to fund the operation and maintenance costs of a sanitary sewer lift station for lots served by a pump station. C. The City Council propos�s to levy the proposed special assessment based on a uniform special benefit and assessment methodology over all developable lots within the proposed district. D. Only costs for maintenance and repairs to the sewer lift station, including electric, water and data charges, replacement of pumps, force mains and appurtenances, maintenance of any buildings or structures housing sewer lift station facilities; other improveinents to remove or cover graffiti, administrative costs; and such other maintenance and incidental expenses as are authorized by Streets and Highways Code 5821 will be assessed. Pursuant to Government Code Section 53739, the amount of each fiscal year's assessment shall be adjusted �or inflation in an amount not to exceed that provided by the "20 Cities Construction Costs Index" from the most recent March Enginee�ing News Reco�d and shall become effective 7uly 1, 2027, and every July 1 thereafter. E. This resolution satisfies those requirements set forth in the Improvement Act of 1911, Chapter 26, Maintenance Districts (Streets and Highways Code Section 5820 et. seq.) and the notice requirements set forth in Government Code 53753(b). NOW,THEREFORE,IT IS HEREBY RESOLVED by the City Council of the City of Redding as follows: L That the foregoing recitals are true and correct and are adopted herein. 2. The City Council hereby declares its intention to form Sanitary Sewer Maintenance District 01-25. 3. The City Council hereby approves the Engineer's Report, as �led with the City Clerk, and thereby confirms and adopts the map of the assessment district contained in the Engineer's Report. 4. The City Council fmds that the Engineer's Report has fairly and properly apportioned the costs of the improvements to each residential unit in the district in proportion to the estimated benefits to be received by each benefit unit from the improvements. 5. Notices and ballots will be mailed upon acceptance of this Resol�ution, and public hearing and election will be held on Tuesday, September 2, 2025, at the hour of 6 p.m., or as soon thereafter as the matter may be heard,in the City Council Chambers located at 777 Cypress Avenue, Redding, California to address the proposed assessment for Fiscal Year 2026-27. The proposed annual assessment for the entire district is $23,317.00 and the annual assessment per Benefit Unit (each parcel) is $333.10. The reason for the assessment and the underlying basis for computing the amount of the assessment is set forth in the Engineer's Report which can be obtained from the City C1erk at the above address. The assessment is subject to annual inflationary increases in accordance with cost of living index known as the "20 Cities Construction Cost I.ndex. The annual assessments shall have an indefinite term and will continue until such time as the district is disestablished, if ever. 6. Pursuant to Streets and Highways Code section 5827 and Governm�nt Code section 53'753, protests against the formation of the maintenanee district may be filed with the City Clerk or presented no later than the conclusion of the public hearing set by this resolution. A ballot must be filled out and returned the same no later than the close of the public hearing referenced above. The assessment will not be imposed if the ballots submitted in opposition to the assessment exceed the ballots submitted in favor of the assessment, with ballots weighted according to the proportional financial obligation of the affected property. I HEREBY CERTIFY that the foregoing resolution was introduced and adopted at a regular meeting of the City Council on the 15th day of July, 2025, by the following vote: AYES: COUNCIL MEMBERS: NOES: COUNCIL MEMBERS: ABSENT: COUNCIL MEMBERS: ABSTAIN: COUNCIL MEMBERS: JACK MUNNS, Mayor ATTEST: APPROVED AS TO FORM: SHARLENE TIPTON, City Clerk CHRISTIAN M. CURTIS, City Attorney NOTE: For the precise nature and location of improvements maintained by the District, refer to documents and mapping on file with the City's Engineering Division. NOTE: For a detailed description of the lines and dimensions of lots or parcels shown on this map, refer to the County assessor's maps which shall govern with respect to all details concerning the lines and dimensions of such lots or parcels. 70 ASSESSOR PARCELS: 204-030-074 SEWER IMPROVEMENTS: DISTRICT BOUNDARY -———- SEWER FORCE MAIN ` ❑ SEWER �I�f STATION 69 PARCE� A � �, �- ' � N DISTRICT BOUNDARY 33 ��G 32 ��q 31 � � 30 34 29 67 �$ ,� 35 � � � 51 � 36 ��`� / 5� � , 50 ,\ 37 53 38 68 �� 54 49 , 48 � 39 ���� 26 55 47 '� o�'� � 25 � 56 � 24 � 57 46 � �'° ����'�. SS �I�1" 10 23 � 5g 45 \ 40 �Q STATION 1� �� 22 � 59 44 \ 41 0��,�' � 13 21 ` 43 �' � `�� � 6p 42 9 g �� 14 20 61 66 � ��� � ` 15 19 � 62 65 % ��os e��o 6 16 ' / 5 �� 17 18 � „� 63 64 � ssMN v� _...--�- --�.., i 4 4" SS FORCE MAIN 3 2 1 FURFkq Wq y ENGINEERING DIVISION LOCATION MAP SANITARY SEWER MAINTENANCE DISTRICT 1-25 BENEF�T UNITS o' �oo' 200' SALT CREEK HEIGHTS UNIT 4 �w�. No: AM N D-2017-00160 �� ss�,o 01-25 JIJNE 2025 S-15-07 PD-11-07 sNEET � oF � � nit� r evver . . . � � nten � nce � str� ct _ � t re e < . , n � neers e or Fisc�l Year ZOZ�-Z7 i'rep�red under the provisions ofi the Improvement Act ofi 191 1 ofi the C�lifiorni� Streets & Highw�ys Code I'rep�red by � -� �, Mich�el R. Webb, RCE - �� �. Director of I'ublic Worl<s/ = .�. �--° City Engineer � � I F =�,�r �,� July ZOZS ;r ,,, . .. , Certificates The undersigned respectfully submits the enclosed Engineer's Report as directed by the City Council. Dated this day of July, 2025. By: Michael R. Webb, RCE 73986 Director of Public Works/City Engineer I HEREBY CERTIFY that the enclosed Engineer's Report and Assessment Diagram was filed with me on the day of , 2025. City Clerk of the City of Redding County of Shasta By: I HEREBY CERTIFY that the enclosed Engineer's Report, together with the Assessment Roll thereto attached, was approved and confirmed by the City Council of the City of Redding, on the day of , 2025. City Clerk of the City of Redding County of Shasta By: City of Redding Sanitary Sewer Maintenance District -District 01-25 Page 9 Overview The purpose of this report is the formation of Sanitary Sewer Maintenance District 01-25 "District" and setting the budget and assessments for the upcoming fiscal year. The District is authorized and will be administered under provisions of the City of Redding Municipal Code Section, the "Improvement Act of 1911" (California Streets & Highway Code §5820 et. seq.), "Proposition 218" (Article XIIID of the California Constitution), and the "Proposition 218 Omnibus Implementation Act" (California Senate Bill 919). The aforementioned are collectively referred to as "Assessment Law." This Engineer's Report addresses the annual maintenance of identified improvements within the District. Part A: Assessment Map (See Part A Attachment) The District is located in the City of Redding, County of Shasta, State of California.The District boundary generally encompasses the Salt Creek Heights Unit 4 Subdivision (AMND-2017- 00160 / S-15-07 / PD-11-07) and is depicted on the Part A Attachment. Part B: District Improvements and Estimated Maintenance Expenses (See Part B Attachment) The estimated maintenance expenses for the District include the total costs of maintaining and servicing the District's sanitary sewer lift station components and force main. The plans and specifications for the identified improvements are on file in the City's Engineering Division. The initial expense to install the lift station and force main will be borne by the developer at time of development. No bonds will be issued in connection with this District. Part C: Sanitary Sewer District Assessment and Levy Calculation The assessments are authorized to be indexed (increased) annually based on the published 20 Cities Construction Cost Index compiled by Engineering News Record. The actual per lot levy is the lesser of the amount calculated to be needed for each benefit unit (total funds needed divided by number of benefit units) and the maximum authorized assessment. The levy is the amount that will be assessed on each benefit unit and will be calculated on a yearly basis. In the event that assessment revenues are insufficient to cover the cost of annual maintenance activities, services may be reduced to avoid a deficit. City of Redding Sanitary Sewer Maintenance District -District 01-25 Page 2 Part D: Analysis of Benefits of Properties Being Assessed Construction and maintenance of the identified improvements were conditions of development forthe subdivision. The lift station is necessary to convey sewage generated by the subdivision to the existing public sewer system within Lower Springs Road. These are special benefits conferred upon each assessed lot within the District. These "special benefits" received by the identified parcels are above and beyond the City's standard level of service and are exclusive of the general benefits provided to the public at large or properties located outside the District. Part E: Method of Apportionment The law does not require lots to be contiguous to the improvements, only that the assessment is distributed across all lots in proportion to the degree of special benefit received from the improvements.The proposed apportionment methodology is based on a uniform special benefit and assessment over all developable lots within the District. The total number of benefit units (BUs) may vary from fiscal year to fiscal year due to parcel changes and/or land use reclassifications. The total number of benefit units is 70. The total estimated expenses from the Part B attachment is $23,317.00. Therefore, the maximum assessment per benefit unit is $333.10 for Fiscal Year 2026-2027. Part F: Assessed Parcels (See Part F Attachment) The Part F Attachment contains a list of the Shasta County Assessor's Parcel numbers within the Assessment District for Fiscal Year 2024-25. The Assessment Roll is filed in the Office of the City Clerk and is incorporated in this Report by reference. The list is keyed to the records of the Shasta County Assessor, which are incorporated herein by reference. City of Redding Sanitary Sewer Maintenance District -District 01-25 Page 3 PART A ATTACHMENT �J�T�:�vr th��rr�cis�����ar�and ltec��ic�rt c�f impra��rr��r�t� m�ir�t�ir��d k�y 4h� Gai�tric�, r�f�r tc��'�o�a����at��r�d rr��ppin� tan fil��ri�h��Gity's�ngir���ring�iui�it��. �I�}'T�: F�r���t�il��d��c�ipti�r���tRa� lin�s��d�irr��n�i�r���f I�t��r p�rc�l� �h�a�+r��r��t�i���p� r�f�r t�th����rc��y �����s�r'�rn�p��t�i�h s��ll g�v�r��ith� ���p�ct t�a�II c��t�il��rae���r�in�the lir��s �nd�i����irans sa���€�k�I�#�r�r p���l�., r�'� ������C:�� ��iR��L�: ���-���-C17� ��1�UE� �h��R�`�V�M�N��6: _,.���il`:��TRIC;� ��tJ�I�F��'�t _�-,�..�°— °��V"��f� �'�}V�C� �,�IN � ��'vdER L�F"°l�' ��A'�`IU� �� P L,A L?�°�T�'��T �QI.��JCxr���' �� ��,� : �� �� � �� � � �� , �4 ; , ' 2� �7 �� r� �5 '� �1 �� ��, �� �� � �� � �� s� �$ �-� �� �, �� �� �� � �� �. �� , �� � �.�� �� �; `�� � �� ° �� '�� `�°ti �� �� '� 57 �>� �� L&F_f �� �S ��; �i� � ��A�"�t��l �.�. �3 � 44 ,� �1 �,'�" �� 2� � 59 �1� � �� �� ��, , �� �� � � � ` �4 �C� � 61 �6 �� �' , 7 � 15 � r �`y � ��r �� � �� �� �� ���L� � Y7 1�, � �� �� ` � ���� 8 � �i�.� . .. ...� --�.�"^�. .. .. �",�'�5i A�.s /� ��. °'F 4'" 5� F$�ft�� �IAI � � �. �`�',��' k9 �,�� �r���r����w�� � �4► �P ... - ���rr�����v���r��i�-r�r��,��� ����r���� �-�� ������ � � ����� �� ���° ���° �A,L�" ����I� F-I�I�FiT� I��IIT� r�w�� ��� �tf'�+11�IC�-���7'-�t�1�it� 7�} ss�r� �a�-�� �IUNE ����_ �-1�-�7 �C3-7�-�� �H��r � a�� 7 City of Redding Sanitary Sewer Maintenance District 01-19 Page 4 PART B ATTACHMENT Estimated Cost of Maintenance for Fiscal Year 2026-27 Sanitary Sewer Maintenance District 01-25 Salt Creek Unit 4 FY 2026-27 Estimated Expenses Section 1 Estimated District Maintenance Expenses 1. �ift Station Operational Maintenance 8,800 Performed by Public Works staff 2. Utility Costs 2,800 Electric,Water and Data (Alarm and SCADA) 3. Estimated Cost of Scheduled Replacement Parts (Replacement costs over a 10 year period = 28,015) Year 1 (10%of 28,015) 2,802 4. Outside Services 1,500 Total 15,902 Section II Estimated District Administrative Expenses Administrative Costs: Public Works Department Purchasing Department City Attorney City Clerk City Treasurer Total 1,500 Section 111 CountY Administrative Fee 115 Total Estimated Expenses 17,517 City of Redding Sanitary Sewer Maintenance District 01-19 Page 5 Section 111 Levy Calculation A. District Balance as of June 30, 2025 0 B. Total Estimated Expenses for FY 2026-27 17,517 C. District Reserve (50%of Maintenance Expenses Lines 1 &2) 5,800 D. Funds Needed to Provide Maintenance and Maintain District Reserve for FY 2026-27 ((B:Expenses+C:Reserve)-A:Ba/anceJ 23,317 E. Number of Lots to be levied(Benefit Units) 70 F. Lot Assessment based on Tota) Funds Needed 333.10 G. Current Lot Levy 333.10 City of Redding Sanitary Sewer Maintenance District 01-19 Page 6 PART F ATTACHMENT Assessment Roll Fisca) Year 2024-25 Subdivision District Lot Number APN Subdivision Benefit Units Unit Rate Total Owner 01-25 1 through 70 204-030-074 Salt Creek Unit 4 70 $333.10 $23,317.00 Sierra Pacific �and&Timber City of Redding Sanitary Sewer Maintenance District 01-19 Page 7