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HomeMy WebLinkAbout _ 6.1--Public Hearing re_ SSMD 01-25 Salt Creek 4 Formation GI �" Y C� F � � �- ' � ° � � i � CITY OF REDDING �� REPORT TO THE CITY COUNCIL MEETING DATE: September 2,2025 FROM: Michael Webb, Public Works ITEM NO. 6.1 Director ***APPROVED BY*** „, �. .A,��,� ie ael � iiEali� oaks L)arector �(?11242� i�}�in,Ci an � 8127(242� mwebb@cityofredding.org btippin@cityofredding.org SUBJECT: 6.1--Public Hearing to consider adopting a Resolution forming Sanitary Sewer Maintenance District O1-25, Salt Creek 4). Recommendation Conduct a Public Hearing and, upon conclusion, if the majority of the voting property owners are not opposed to the formation of Sanitary Sewer Maintenance District (SSMD) O1-25 (Salt Creek 4), adopt Resolution: (1) Confirming results of the election of the assessment district; (2) Confirming the assessments contained in the Engineer's Report for said district; (3) Ordering the formation of territory into SSMD 01-25 for Fiscal Year 2026-27; and (4) Approving the annual assessments for Fiscal Year 2026-27 pursuant to the Improvement Act of 1911, Streets and Highways Code, Chapter 26, Maintenance Districts, Section 5820, et. seg. and levying and collecting the same for Fiscal Year 2026-27. Fiscal Impact Generally, sanitary sewer maintenance districts are self-supporting and there are no fiscal impacts to the City of Redding's (City) General Fund. AZteNnative Action The City Council (Council) may choos� not to adopt the Resolution ordering the formation of SSMD 01-25, and provide alternative direetion to staf� This will require identifieation of an alternative funding source to provide the required maintenance so as not to become a General Fund obligation. If a majority protest is found at the Public Hearing, the Council cannot approve the formation of the district. Background/Analysis On Ju1y 15, 2025, the Council approved the Engineer's Report, directed staff to mail the Notice of Public Hearing and Official Ballots, and set a public hearing regarding the formation of Sanitary Sewer Maintenance District (SSMD) 01-25 Salt Creek 4. Report to Redding City Council August27,2025 Re: 6.1--Public Hearing re:SSMD 01-25 Salt Creek 4 Formation Page 2 SSMD O1-25 is being formed to comply with the conditions of approval �or the Sa1t Creek Unit 4 Subdivision (AMND-2017-00160 / 5-15-07 / PD-11-0�) located off Lower Springs Road north of Highway 299. A conventional gravity sewer system is impracticable for this subdivision; therefore, Condition of Approval No. 65 requires the developer to create an SSMD to fund the 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. Smalllift 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 custoiners. The proposed formation of SSMD 01-25 will affect a total of 70 residential units, on which assessments will be levied. The total assessment for Fiscal Year 2026-2� is: $23,317.00 = $333.10 per residential unit(benefit unit) It is important to note that approval includes the allowance of an annual cost escalation to the assessment which is tied to the "20 Cities Construction Cost Index" from the most recent March issue of the Enginee�ing News Record. This annual cost escalation is intended to assure continued maintenance funding as inflation occurs and will be presented each year to the Council with the annual assessment and levy update for the SSMD. It should also be noted that the amount per unit is the maximum assessment and based on completion of the entire subdivision. The levy will be adjusted year to year as development occurs. The Improvement Act of 1911 requires an election of the property owners and requires that the Council hold a public hearing regarding the formation of new Sanitary Sewer Maintenance District. Proposition 218 also requires a public notice period of 45 days prior to the Council's action. On July 18, 2025, a notification of the proposed annual assessment and public hearing was mailed to each property owner in the proposed district along with a ballot for the formation of the district. Ballots are due prior to the end of the public hearing for this item. Following is an. explanation of the procedure for this item: l. Open the public hearing, accept comments and ballots from property owners, and close the public hearing, at which time property owners may no longer submit ballots. 2. Following the close of the public hearing, ballots are tabulated by the City Clerk who ret�urns to the Council later in the meeting to report the election results. If a majority protest is not determined, the Council can elect to adopt the Resolution that orders the formation of SSMD 01-25. The Resolution has been approved as to form by the City Attorney. Report to Redding City Council August27,2025 Re: 6.1--Public Hearing re:SSMD 01-25 Salt Creek 4 Formation Page 3 Envi�onmental Review This activity is not a project as defined by the California Environmental Quality Act (CEQA). On June 15, 2010, Council adopted resolution 2010-056 certifying the CEQA Environinental Impact Report EIR-1-08, approving Tentative Map Application 5-15-0�, and approving the Planned Development Plan Application PD-11-07. 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 1-25 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) CONFIRMING THE RESULTS OF THE ELECTION OF THE ASSESSMENT DISTRICT. (2) CONFIRMING THE ASSESSMENTS CONTAINED IN THE ENGINEER'S REPORT. (3) ORDERING THE FORMATION OF TERRITORY INTO A SANITARY SEWER MAINTENANCE DISTRICT TO BE KNOWN AS SANITARY SEWER MAINTENANCE DISTRICT O1-25. (4) APPROVING THE ANNUAL ASSESSMENTS FOR FISCAL YEAR 2026-27 PURSUANT TO THE IMPROVEMENT ACT OF 1911, STREETS AND HIGHWAYS CODE, CHAPTER 26, MAINTENANCE DISTRICTS, SECTION 5820, ET. SEQ. AND THE LEVY AND COLLECTION OF THE SAME FOR FISCAL YEAR 2026-27. WHEREAS: A. On July 15, 2025, by Resolution 2025-052, the City Council approved the Engineer's Report as filed relating to Sanitary Sewer 1Vlaintenance District O1-25 (District) and gave notice of the time and place of the September 2, 2025, public hearing regarding the levy and collection of assessments for Fiscal Year 2026-2'7. B. Map of the area in the district is attached and made a part hereof. C. The public hearing, duly and properly noticed, commenced at the City Council Chambers, '7'7'7 Cypress Avenue, Redding, California, on September 2, 2025, and concluded prior to the adoption of this resolution. At the public hearing, the City Council gave every interested person an opportunity to speak to the proposed assessments. D. The ballots were counted and no majority protest was made to the formation of Sanitary Sewer Maintenance District 01-25. E. All legal prerequisites to the adoption of this resolution have occurred. NOW, THEREFORE, IT IS HEREBY RESOLVED by the City Council of the City of Redding as follows: 1. The foregoing recitals are true and correct. 2. The City Council has considered all oral statements and written protests or cominunications made or filed by interested persons at the public hearing of September 2, 2025, and expressly overrules any and all protests filed objecting to the proposed assessments to be levied in the District. No majority protest was made to the formation of Sanitary Sewer Maintenance District 01-25. 3. The City Council finds 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. 4. Pursuant to Streets and Highways Code Section 5821, the City Council hereby approves the Assessments contained on the Engineer's Report, as filed with the City Clerk, and thereby confirms and adopts the assessment of the assessment district contained in the Engineer's Report. 5. The territory within the map of the assessment district set forth in the Engineer's Report is hereby formed into an assessment district under the Improvement Act of 1911, Chapter 26, Maintenance Districts (Streets and Highways Code Section 5820, et seg.), to be hereafter known as Sanitary Sewer Maintenance District 01-25. 6. Only costs for necessary repairs, replacements, fuel, power, electrical current, care supervision and all other items necessary for the property maintenance and operation thereof as authorized by Streets and Highways Code Sections 5821 will be assessed. Pursuant to Government Code Section 53'739, the amount of each fiscal year's assessment shall be adjusted for inflation in an amount not to exceed that provided by the "20 Cities Construction Costs Index" from the most recent March Engineering News Record and shall become �ffective July 1, 202'7, and every July 1 thereafter. 7. An assessment of $333.]0 per benefit unit located within SSMD 01-25 for Fiscal Year 2026-27 is adopted and confirmed. 8. The City Clerk shall forthwith transfer to the Auditor-Controller and the Assessor-Recorder of Shasta County a certified copy of this resolution and a certified copy of the assessment district map contained in the Engineers Report for Sanitary Sewer Maintenance District O1- 25. I HEREBY CERTIFY that the foregoing resolution was introduced and adopted at a regular meeting of the City Council of the City of Redding on the 2"d day of September, 2025, by the following vote: AYES: COUNCIL MEMBERS: NOES: COUNCIL MEMBERS: ABSENT: COUNCIL MEMBERS: ABSTAIN: COUNCIL MEMBERS: JACK MUNNS, Mayor ATTEST: FORM APPROVED: SHARLENE TIPTON, City Clerk CHRISTIAN M. CURTIS, City Attorney NOTE: For the precise nature and location of improvements maintained by the District, refer to documents and mapping on file with the City's Engineering Division. NOTE: For a detailed description of the lines and dimensions of lots or parcels shown on this map, refer to the County assessor's maps which shall govern with respect to all details concerning the lines and dimensions of such lots or parcels. 70 ASSESSOR PARCELS: 204-030-074 SEWER IMPROVEMENTS: DISTRICT BOUNDARY -———- SEWER FORCE MAIN ` ❑ SEWER �I�f STATION 69 PARCE� A � �, �- ' � N DISTRICT BOUNDARY 33 ��G 32 ��q 31 � � 30 34 29 67 �$ ,� 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 � . . . . � � � ���� � �� � ������ � � � ��� � r � �.�� � ��� � I�rep�red under the prr�visic�ns t��the lmprc�vem�r�t �ct af ] 91 1 r�f the ��Iiforni� Streets & Highw�ys Cc�de Prep�red by � i T Y � F 11�ich�+el R. Webb, RCE ,:� - Directar of I'ublic �lorksj � City Engineer �;�4`��� /^4 � �\ f���[�� jq����'',. � . 'f}�/�) ('''�'{ WI � l.w ' � V' � !Y�. � �F^'i. .����L V�'./� � � k �s i'gi�� 1 e�', r.�`'�"4�q P �,vx��. � � ' The undersigr�ed respectfully submits the enclosed Engineer's Report as directed by#he Gity Cc�uncii: �%'��r`�� Dated this � ��.�''�,�day af J+�ly, 2025. By. Michael R. � , E 73986 Directar af Public Wc�rks/City Engineer I HEREBY CERTIFY�that the enclo�ec�Engineer's Repc�rt and Assessment aiagr�m was filed with me on the ��`� �_�d�y t�f �...�t,���� , 2025, �..� City Glerk of#he City af Redding Cc�unty c�f Shasta g `'f�� ����.�.�-.�,. :� � ���,�`�� y �� , � � I HEREBY CERTIFY th�t the encic�sed Engineer's Report, tc�gether wi#h the Assessment Roll theret� attached,was appraved and confirmed by the City Council c�f the City of Redding, on the �r�� day of ��.�.�;�`���:�;� . , 2Q25. Gity Clerk of f�re City of Reddin� Cc�unty of Sh�sta Byc City of Redding Sanitary Sewer Maintenance�istrict -Districf 01-25 Page 1 Ov�rview The purpose of this re}aflrt is the formatic�n of Sanitary Sewer 11�aintenance District 01-25 "i7istrict" and setting the budget and assessrnents ft�r the up+cc�ming fiscal year. The District is authorized and will' be administer�d under provisions of the City of Redding Municipal Code Section, the "Imprc�vement Act c�f �911" (Califc�rnia Streets & Highway Cade§5820 �t. seq.), "Proposition 218„ {Article XIII� of the Califc�rnia Constitution), and the "Proposition 218 Omr�ibus Implement�tic�n Act" (California Sen�te Bill 919). The afcrrementianed are collectively ref�rr�d to�s "Assessmenfi L�w.'° This Engineer's Repork addresses the annual maintenanc� of identified improvements within the D�strict. Part A: Assessmen� ap (See Part A Attachment} Th�District is located in the City of Redding, Cnunty of Shasta, State af Califc�rnia.The District boundary gen�r�lly enc�mpass�s the Salt Cre�k Neights Unit 4 5ubdivision (AMND-2(��7- �0�60 J 5-15-07/ PD-11-07) and is depicted an the P�rt A Attachment. Part B: �istrict Improvements �nd Estimate�! Maintenance Expens�s (See Part�Rttachment} The estim�ted maintenance exper�ses fc�r the Di�trict include the tatal costs t�f maint�ining and servicing the I�istrict's sanitary sewer fift static�n components and fc�rce m�in, The plans and specificatir�ns for the identified irnprnvements are an file in the City's Engineering C?ivision. The initial expense ta install th� lift st�tion �nd fc�rce m�in will be bc�rne by the developer at fiime of develc�pment. R!a bonds will be issued in cannectir�n with this District: Part G: Sanit�ry Sewer�istricf Asses�me�t and Levy Galculation The assessments are�uthorized to b� indexed (increased) annually based an the published 20 Cities Canstru�tic�n G�st Index compiled by Engineering News Rect�rd. The actual p�r lot levy is the lesser of the amc�unt calcufated to be needed for each benefit unit {total funds need�d divided by number c�f benefit units) and the maximum authc�rized assessment. `�he levy is the amount that wiil be assessed on each benefit ur�it and will be calculated on a yearly basis. In the event tl�at assessment revenues are insufficient tca ct�v�r the cost c�f annu�l maintenance actiuities, services may b� reduced to avaid �deficit. , City of Redding Sanitary Sewer Maintenance District -D�strict 01=25 Page 2 Part Q>: �,nalysis of Benefits of Properties Being Assessed Construction and maintenance �f the identified irnprovements were car�ditions o�development fc�rthe subdivisian. The lif#statior� is necessary to convey sewage generated by the subdivision to the existing pub{ic sewer system within Lower Springs Rc�ad, These are special benefits canferr�ed up�n each �s�essed lat within the Districfi. These "special ben�fits" received by the identified parcels are above and beyond the City's st�r�dard level r�f service and �re exclusive of the general bene€its provided to the public at large or prc�per�ies located c�utsid� the District. Part E: 1Vlefhc►d of,4pportianment The law does not require lots tc�be contigut�us to the irnprov�ments, canly that the assessment is distributed across all Ic�ts in proportion ta the degree of sp�ci�l benefit received from the improvernents.The proposed apportionment methodc�lagy is based c�n a uniform special b�nefit and ass�ssment over a[I develcrpable lots within th� District. 7he total number of ben�fit units (BUs) may vary from fiscal year to fiscal year due to parcel changes and/or land use re�lassifications. The to#al number of benefit units is 70. The total �stirnated expenses from the Part B attachment is $23,317.Q0. Therefore,the maximum assessment per benefit unit is $333.10 for �isc�l Year 2026-2�27. Part F: Assessed Ra�°cets (See l'art F Att�ci�ment) The Park F Attachment contains a list of the Shasta Caunty Assessc�r's Parcel numbers within fihe Assessment District f�r Fis��l Year 2024-25. ?he Assessment Rt�}I is filed in the Uffi�e r�f the Gity C1erk and is incorpor�ted in tMis Report by referen�e. The list is keyed to the recc�rds af the Shasta County Assessor,which are incorporated herein by reference. City of Redding Sanitary Sewer Mainten�nce 17istrict -District D1-2� Page 3 PA T A TT C E T 4�C)TE:Fc�r the precise n�ture and lacaUan of improvemen3s m�intained by f�,e I�istrict,refertca dc�cuments and mapF�irr9 on fil�with the City's Engin�er€ng��visi�n. Nt�TE:For a detailed des�rapti�r�c�f kt�e lin�s and dir�nensi�ns�f fc�ts crr p�rcels shotnrn crn ti�is rna�,r�fer tc�th�Counfy assessar's maps wh`sch shaCl gov�rn with resp�ct to all deta�ls etan��r�ing tF�e lin�s �nd d'i€nensions c�f such Icrts qr p�rcels. 7(? ASSESSC)R �AF�GE�S: �Q4-Q3�?-CM7'�. �G1NER 9h�tF'�`G�'��v1ENT�. __�—:DISTRI'T ��UDd�Al2r` --._.-�- SE1,1+ER FC}�G� �7;filN �I ��'�h+E�s �I�"1" ::i"�;71uN &9 � �� L���TR�rT �{JUN��RY� � 33 � 32 �' �.� �. _ 31 3b ;'� 34 �9 � �;ry �� ,O� 35 � 51 � 36 52 3� , � �� 5t� � 68 �� �� 49 �, �� �6 d$ �1 �`� ;�;�;'- 25 � � �� 47 �4 �c�� �� ',� S7 4�i `� ��'���' s:� �+�--r �.a f �� . � �s '�,, �� �� s-ra-r€u� �.1 � �4� 't 4�. � S2 22 5g �� 4, ''°� 1� 21 6� 42 � � �� �� �a � �� �� ,,'� �'°�, � �� '� �� I �� , °��� �� � ss � � � ,�...�.�--�.���... � � �� is i �� s� � �� L:,����;-�-�.. �� � ��.. , � � 4� s�r����� �,�,� � � �: ���.� �'�r E N�ER .� SANITARY SEWER MAIt�17ENAN�E E3ISTRI�T �-�'5 ����F'r ,w __ _._ �lNIT� o� 1�ur _ 2�c�' �ALT CREE�f N�IGN�'S UNIT4 �w+<�. r,t�: A11�IVC?-2017-�JC?'E�ifl �� svr�c ��-7� JI�N� ���M 5-15-07 PC?-11-f37 SHEE7 1 t�F` 1 City of f?edding Sanitary Sew�r Maintenance District 0'1-19 Page 4 A T �C E T Estimat�d Cost af Maintenance for Fis�al Year 2426-�7 Sanit�ry Sewer aintenance (�istricf 01-�5 Salt Cree� Unit 4� Fv zQ2�-z� Estimated Expenses 5ection l Estimated district Maintenance Expenses 1. Lift Statian Operationai Maintenance 8,8Q0 Perfc�rmed by Public Works staff 2. Utility Casts 2,800 Electric,Water and data (Alarm and SCAb,4) 3. Estirnated Cost of Scheduled Replacement Parts (Repla�ement costs over a 10 year period=28,015) Year 1(10l of 28,015) 2,8Cl2 4: t�utside Services 1,5U0 Total 15,902 �eeticars 11 Es�irr�ated�3is�ric4 Administrafive E�penses Administrative Costs. Public Works Department Purchasing Department City Attorney Gity Clerk City Treasurer Tatal 1,5t#0 Sectian I11 C�un#y,4dministrative Fee 115 Total Estimated Expenses 17,517 City af Redding Sanitaty Sew�r Niaintenance Distriet 09-�9 Page 5 Section III Lew Calculation A. Qistrict Balance as ofJune 30, 2�25 0 B. Total Estimated Expensesfor FY 2Q26-27 17,5�7 C. District Reserve (50l Qf Maintenance Expenses Lines 1&2) 5,800 D. Funds Needed to Pravide Maintenance and Maintain [�istrict Reserve for FY 2026-2? ((B;Expenses+C:Reserve}-A:Balance] 23,317 E. Number of Lcats to be levied(Benefit Units) 70 F. Lot Assessment based'on Tota) Funds Needed 333,1� G, Current Lc�t Levy 333,10 City of Redd�ng Sanitary Sewer Maintenance District 01-19 Page 6 P RT F �4 H ENT �ssessrnent Roll Frs�ai Year 202A�-�S swbdiv�sion t�istrict Lot Number AFN Subdivision Benefit tJni#s Unif Rate Tatal Qwner 01-25 1 through 70 204-030-074 Satt Creek Unit 4 70 $333.1t} $23,317.00 Sierra Pacific Land&Timber City of Redding Sanitary Sewer Maintenance Qistrict 09-19 Page 7