The URL can be used to link to this page

Home My WebLink About _ 6.2--Public Hearing Sanitary Sewer Maintenance Districts 01-07 and 01-19 CITY OF REDDING REPORT TO THE CITY COUNCIL Recommendation Conduct a Public Hearing and, upon conclusion, adopt Resolution relative to Sanitary Sewer Maintenance Districts (SSMD) 01-07 Hope Lane and 01-19 Seven Bridges, to authorize and approve the following: (1) Confirming the map of the assessment district as contained in the Engineer's Reports for SSMD 01-07 and SSMD 01-19; and (2) Approving and confirming the annual assessments and ordering the levy amounts shown for Fiscal Year 2025-26 pursuant to the Improvement Act of 1911, Chapter 26, Maintenance Districts, Streets and Highways Code Section 5820, et seq. Fiscal Impact Generally, Sanitary Sewer Maintenance Districts (SSMD) are self-supporting, and there is no fiscal impact to the City of Redding's (City) General Fund budget. Alternative Action The City Council (Council) may decide to provide alternative direction to staff or make changes to the Engineer’s Report. This alternative may result in underfunding the SSMDs moving forward or subject the City to litigation if the actual costs are not properly allocated in accordance with California State law. Background/Analysis This public hearing concerns the acceptance of testimony regarding the setting of the annual assessment and levy amounts to maintain the facilities in SSMD 01-07 and SSMD 01-19. Following the hearing, the Council may take final action regarding the proposed annual assessments and levy amounts for Fiscal Year 2025–26. MEETING DATE: July 15, 2025 ITEM NO. 6.2 FROM: ***APPROVED BY*** mwebb@cityofredding.org btippin@cityofredding.org SUBJECT: 6.2--Public Hearing to consider Resolution regarding Sanitary Sewer Maintenance District 01-07 Hope Lane and 01-19 Seven Bridges. Michael Webb, Public Works Director Report to Redding City Council July 8, 2025 Re: 6.2--Public Hearing Sanitary Sewer Maintenance Districts 01-07 and 01-19 Page 2 These SSMDs were formed to comply with the conditions of approval for the Hope Lane Subdivision, (S-12-03) and Seven Bridges Subdivision, (S-03-09/PD-1-09/RZ-2-09). These subdivisions were unable to utilize a standard gravity sewer line, and the subdivision’s conditions of development state that the costs of maintenance and operation of the lift station will be borne by the tributary property owners. Use of a sanitary sewer maintenance district ensures that the majority of maintenance responsibilities are borne by the owners of lots within the respective districts and not by other utility customers. The proposed annual assessments for the SSMDs have been increased by an annual inflation adjustment which is tied to the “20 Cities Construction Cost Index” from the most recent March issue of Engineering News Record. This proposed assessment increase was developed pursuant to a methodology established at the time of the formation of the SSMD. The calculated levies reflect anticipated maintenance needs of the districts for Fiscal Year 2025-26. The proposed levy for SSMD 01-07 is less than the proposed assessment because the maintenance needs of this district for this fiscal year can be met at a lower levy amount. The proposed levy for SSMD 01-19 is at the proposed assessment because the subdivision has not been fully developed. SSMD District Name General Location Proposed Assessment Proposed Levy 01-07 Hope Lane At the intersection of Hope Lane and Carnegie Drive $ 531.68 $ 214.36 01-19 Seven Bridges At the intersection of Oasis Road and Rialto Parkway $ 192.97 $ 192.96 A legal advertisement notifying the proposed annual assessment and public hearing was placed in the local newspaper which explained the proposed increase from the current assessment for Fiscal Year 2025–26. As of this writing, City staff has received no protest from lot owners regarding the proposed assessment. Environmental Review This activity is not a project as defined by the California Environmental Quality Act (CEQA). On January 25, 2005, the Planning Commission adopted the CEQA Mitigated Negative Declaration for the Hope Lane Subdivision, and on March 10, 2015, the Planning Commission adopted the CEQA Mitigated Negative Declaration for the Hope Lane Phase 2 Subdivision. On September 7, 2010, Council adopted the CEQA Mitigated Negative Declaration for the Seven Bridges Subdivision. No further action is required. Council Priority/City Manager Goals • Budget and Financial Management – “Achieve balanced and stable 10-year Financial Plans for all funds.” Attachments ^Resolution ^Location Map SSMD 1-07 Engineer's Report 2025-26 SSMD 1-19 Engineer's Report 2025-26 RESOLUTION NO. 2025-____ SANITARY SEWER MAINTENANCE DISTRICTS: SSMD 01-07 AND SSMD 01-19 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF REDDING (1) CONFIRMING THE MAPS OF THE ASSESSMENT DISTRICT CONTAINED IN THE ENGINEER’S REPORTS ON FILE WITH THE CITY CLERK; (2) CONFIRMING THE ANNUAL ASSESSMENT AND ORDERING THE LEVY AMOUNT FOR FISCAL YEAR 2025-26 PURSUANT TO THE IMPROVEMENT ACT OF 1911. WHEREAS: A. On June 17, 2025, by Resolution No. 2025-047, the City Council (Council) approved the Reports of the Engineer as filed with the City Clerk relating to Sanitary Sewer Maintenance District 01-07 and 01-19 (Districts), and gave notice of the time and place of the July 15, 2025, public hearing regarding the levy and collection of the assessment for Fiscal Year 2025-26. B. General locations of the Districts are included in the table below, and a map is attached to the Engineer’s Reports on file with the City Clerk. C. The public hearing, duly and properly noticed, commenced at the City Council Chambers, 777 Cypress Avenue, Redding, California on July 15, 2025, and was concluded prior to the adoption of this resolution. At the public hearing, the Council gave every interested person an opportunity to object to the proposed assessment. D. The assessment for Fiscal Year 2025-26 is outlined in the table below. This assessment does not represent an increase within the meaning of the Streets and Highways Code because the Fiscal Year 2025-26 cost of living adjustment in the amount of 1.9 percent is pursuant to a methodology approved at the time of the formation of the Districts. E. All legal prerequisites to the adoption of this resolution have occurred. THEREFORE THE CITY COUNCIL FINDS, RESOLVES, DETERMINES, AND ORDERS AS FOLLOWS: 1. The matters set forth above are true and correct. 2. The maps of the assessment district contained in the Engineer's Reports are confirmed. 3. The Council has considered all oral statements and written protests or communications made or filed by interested persons at the public hearing of July 15, 2025, and expressly overrules any and all protests filed objecting to the proposed annual assessment and levy amount in the Districts. 4. The Council finds that the Engineer’s Reports have fairly and properly apportioned the costs of the improvements to each developable lot, remaining parcel, or assessable acre of land in the district in proportion to the estimated benefits to be received by each developable lot, remaining parcel, or assessable acre from the improvements. 5. The assessment against each developable lot, remaining parcel, or assessable acre located within the District for Fiscal Year 2025-26 is confirmed, adopted, and levied as outlined in the table below, except that an assessment shall not be levied on property owned by a federal or state governmental agency or another local agency. 6. The City Clerk shall forthwith transfer to the Auditor Controller and the Assessor Recorder of Shasta County a certified copy of this resolution and a certified copy of the assessment district maps contained in the Engineer’s Report for Sanitary Sewer Maintenance District 01-07 and 01-19. 7. That the City Clerk gave notice of said hearing pursuant to the Streets and Highways Code Section 22626(a). SSMD District Name General Location Proposed Assessment Proposed Levy 01-07 Hope Lane At the intersection of Hope Lane and Carnegie Drive $ 531.68 $ 214.36 01-19 Seven Bridges At the intersection of Oasis Road and Rialto Parkway $ 192.97 $ 192.96 I HEREBY CERTIFY that the foregoing resolution was introduced and adopted at a regular meeting of the City Council of the City of Redding 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: FORM APPROVED: _____________________________ _________________________________ SHARLENE TIPTON, City Clerk CHRISTIAN M. CURTIS, City Attorney Public Hearing SSMDs 01-07 & 01-19 Sanitary Sewer Maintenance Districts July 15, 2025 Michael R. Webb, RCE, Public Works Director Table of Contents 1.What is a Sanitary Sewer Maintenance District? 2.SSMDs in Redding 3.SSMD 01-07 “Hope Lane” 4.SSMD 01-17 “Seven Bridges” 5.Assessment & Levy Information 6.Thank You and Q&A -Sanitary Sewer Maintenance Districts (SSMD) are used to fund the maintenance and operational costs of some local lift stations -Lift stations are facilities that use a pump and collection system to move wastewater from an area of low lying land to a higher gravity fed sewer pipe. -Lift stations are not commonly used for subdivisions. SSMDs are formed so that only upstream parcel owners bear the cost of lift station maintenance. Key Takeaway ItemsWhat is an SSMD? SSMDs in Redding There are two SSMDs in the City of Redding SSMD 01-07 (Hope Lane) SSMD 01-19 (Seven Bridges) Both SSMDs were conditioned to be formed at the time of development approval of their respective subdivisions. Formation was accomplished under the Improvement Act of 1911 (1911 Act) which authorizes local agencies to fund the maintenance of different types of infrastructure. SSMDs DefinedProperty owners within these districts are levied an annual assessment on their property tax bill to pay for their share of costs. Only the costs associated with the maintenance and operation of the lift station are levied which include: -Monthly inspection and maintenance by City Crews -Utility Costs (Electric, Water and Data) -A Pump Replacement Parts reserve -Administrative fees A maximum assessment has been imposed on the districts at the time of their formation and may only increase annually with a yearly Construction Cost Index. The actual levied amount will vary depending on the anticipated cost of the fiscal year. SSMD 01-07 Hope Lane -Formed in 2008. -Serves 52 Parcels -Fiscal Year 2025-26: Maximum Assessment per Lot: $531.68 Levy per lot: $214.36 L SSMD 01-19 Seven Bridges -Formed in 2019. -Serves 74 Parcels Future Buildout: 127 Parcels -Fiscal Year 2024-25: Maximum Assessment per Lot: $192.97 Levy per lot: $192.96 Future Units L Maximum Assessment Levy Maximum Assessment Levy Maximum Assessment Levy Maximum Assessment Levy Maximum Assessment Levy Maximum Assessment Levy SSMD 01-07 Hope Lane $439.08 $345.11 $452.69 $ 277.56 $492.98 $322.72 $507.77 $216.46 $521.77 $258.66 $531.68 214.36 SSMD 01-17 Seven Bridges $159.40 $159.40 $164.34 $164.34 $178.96 $178.96 $184.32 $184.32 $189.31 $189.30 $192.97 $192.96 1.5% CCI 3.1% CCI 8.9% CCI 3.0% CCI 2.7% CCI 1.9% CCI Historical Assessments and Levies SSMD 01-17 Seven Bridges 2020-21 2021-22 2022-23 2023-24 2024-25 Maximum Assessments are increased yearly based upon the Engineering News- Report published March 20-City Construction Cost Index (CCI) 2025-26 Historical Assessments and Levies Maximum Assessments are increased yearly based upon the Engineering News -Report published March 20 -City Construction Cost Index (CCI) $192.96 $531.68 $214.36 Thank You! URL for more information