Loading...
03-01-2011 - Restructure City Line of Credit - Item 6.pdfCity of West Covina Memorandum AGENDA Item No.: 6 Date: __March 1, 2011_ TO: Andrew G. Pasmant, City Manager and City Council & CDC Board of Directors FROM: Tom Bachman, Assistant City Manager SUBJECT: RESTRUCTURE CITY LINE OF CREDIT RECOMMENDATION: It is recommended that the City Council adopt the following resolution: RESOLUTION NO.__________ - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF WEST COVINA ESTABLISHING TERMS AND CONDITIONS FOR REPAYMENT OF A $5.6 MILLION LINE OF CREDIT EXTENDED TO THE WEST COVINA COMMUNITY DEVELOPMENT COMMISSION It is also recommended that the Community Development Commission approve the following resolution: RESOLUTION NO.__________ - A RESOLUTION OF THE WEST COVINA COMMUNITY DEVELOPMENT COMMISSION ESTABLISHING TERMS AND CONDITIONS FOR REPAYMENT OF A $5.6 MILLION LINE OF CREDIT PROVIDED BY THE CITY OF WEST COVINA DISCUSSION: On May 2, 2000, the City of West Covina (City) and the West Covina Community Development Commission (CDC) entered in a Line of Credit Agreement in the amount of $5.6 million made available from the City’s general fund resulting from proceeds on the sale of the City’s water system. In 2003, the Citywide Project Area drew down $600,000. The Merged Project Area drew down the remaining $5 million in 2004. The original agreement calls on the CDC to pay interest at the variable rate of LAIF plus 2% on any drawdowns. They are currently paying an interest rate of approximately 2.5% on these loans. The original agreement also called for repayment of principal no later than December 31, 2021. Restructuring of this debt is recommended due to the impact of changing market conditions and possible legislative actions that may adversely impact the CDC. When the interest rate was originally set, the idea was to ensure that the interest rate paid by the CDC was similar to what it would pay if it borrowed the funds from investors by issuing bonds. The loans were also meant to generate a return to the city that was higher than could be obtained from other allowable investments. Current market rates for nontaxable bonds are approximately 7.5% and taxable rates around 9%. The proposed restructuring increases the interest rate from a variable rate of approximately 2.5% to a fixed rate of 7.5% or about the same as the current nontaxable bond rate. The Governor recently proposed the elimination of redevelopment agencies in California as part of his plan to balance the state budget. While the details are still unknown, the loss of tax increment previously pledged for repayment of indebtedness between the CDC and the City is one possibility, especially in the absence of a realistic repayment schedule approved by both the City Council and the Community Development Commission Board. As a result, the CDC needs to clearly document the scheduled repayment of principal and interest. The exact timing of these payments depends on the cash flow capabilities of the project areas. Currently, the Merged Project Area cash flow projections do not support full repayment of the principal by December 2021. The restructuring provides for adjusting the principal repayments based on current cash projections and provides the Executive Director with authorization to accelerate the timing of those repayments in response to legislative and economic changes. Based on the proposed repayment schedule, the Citywide Project Area would repay the entire $600,000 outstanding by June 30, 2011. The Merged Project Area would continue to pay quarterly interest but at the higher 7.5% rate through 2025 and then begin paying $1 million of principal each year until the balance is paid in full on June 30, 2030. FISCAL IMPACT: Implementing the restructuring as proposed will result in an additional $693,000 ($600,000 for repayment of the Citywide loan and $93,000 in additional interest earnings) to the general fund this fiscal year. These additional funds would help maintain the general fund balance. In subsequent years, the general fund will benefit from an additional $250,000 in interest earnings each year through 2025. Interest earnings would decline from 2026 to 2030 as principal is repaid at $1 million per year. As part of this restructuring, the Executive Director will be authorized to accelerate the repayment schedule based on economic conditions and the project areas ability to pay. _____________________________ Prepared by: Dennis Swink City Controller Reviewed & Approved by: via email ________ via email Finance CDC City Attorney RESOLUTION NO.__________ A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF WEST COVINA ESTABLISHING TERMS AND CONDITIONS FOR REPAYMENT OF A $5.6 MILLION LINE OF CREDIT EXTENDED TO THE WEST COVINA COMMUNITY DEVELOPMENT COMMISSION WHEREAS, on May 2, 2000 the City Council adopted Resolution No. 2000-36 approving a 2000 Financing Agreement between the City of West Covina and the West Covina Community Development Commission (at the time established as the West Covina Redevelopment Agency) (“Commission”) establishing a $5.6 million line of credit; and WHEREAS, that Resolution authorized the Commission Executive Director to draw funds on the Commission’s behalf pursuant to the 2000 Financing Agreement, without further action by the City Council; and WHEREAS, said Commission did draw $600,000 to benefit the Citywide Project Area and $5 million to benefit the Merged Project Area; NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of West Covina that: Section 1. The following terms and conditions relative to draws made under the line of credit established by Resolution No. 2000-36 shall henceforth apply: a. Commencing March 1, 2011, all draws on this line of credit shall accrue interest in the amount of 7.5%, which shall be repaid to the City in quarterly payments until the principal is repaid. b. The Citywide Project Area shall repay the total $600,000 principal balance to the City by June 30, 2011. c. At a minimum, the Merged Project area shall begin repayment of principal in the amount of $1 million per Fiscal Year commencing by June 30, 2026 repaying the entire $5 million balance no later than June 30, 2030. d. The Community Development Commission Executive Director may repay any principal amounts, at any earlier times, with no penalty. Section 2. The Community Development Commission will repay said loans plus accrued interest, to the City from any available funds of the Agency, including the portion of taxes mentioned in Subdivision (b) of Sanction 33670 of the Health and Safety Code of the State of California, which may legally be utilized for such repayment. This loan will be subordinate to any outstanding bonds issued by the Commission. Section 3. The City Council further authorizes and directs City staff to undertake such actions and execute such documents that may be reasonably necessary or convenient to carrying out the administration of the actions authorized by this Resolution, including but not limited to any promissory note, deed of trust, or other security instrument necessary to secure the repayment. Section 4. If any part of this Resolution or its application is held to be invalid, the remainder of the Resolution shall not be affected and shall continue in full force and effect. Section 5. The City Clerk shall certify to the passage and adoption of this Resolution and the same shall thereupon take effect and be in force immediately upon its adoption. APPROVED AND ADOPTED this 1st day of March 2011 ______________________ Mayor Steve Herfert Attest: ______________________ City Clerk Laurie Carrico I, LAURIE CARRICO, City Clerk of the City of West Covina, California, do hereby certify that the foregoing resolution was approved and adopted by the City Council at the regularly scheduled meeting of March 1, 2011, by the following vote: AYES: NOES: ABSENT: ABSTAIN: ___________________________ City Clerk Laurie Carrico Approved as to form: __________________________________ City Attorney Arnold Alvarez-Glasman RESOLUTION NO.__________ A RESOLUTION OF THE CITY OF WEST COVINA COMMUNITY DEVELOPMENT COMMISSION ESTABLISHING TERMS AND CONDITIONS FOR REPAYMENT OF A $5.6 MILLION LINE OF CREDIT PROVIDED BY THE CITY OF WEST COVINA WHEREAS, on May 2, 2000 the Community Development Commission Board adopted Resolution No. 551 approving a 2000 Financing Agreement between the City of West Covina and the and the West Covina Community Development Commission (at the time established as the West Covina Redevelopment Agency) (“Commission”) establishing a $5.6 million line of credit; and WHEREAS, that Resolution authorized the Commission Executive Director to draw funds on the Agency’s behalf pursuant to the 2000 Financing Agreement, without further action by the City Council; and WHEREAS, said Commission did draw $600,000 to benefit the Citywide Project Area and $5 million to benefit the Merged Project Area; NOW, THEREFORE, BE IT RESOLVED by the West Covina Community Development Commission that: Section 1. The following terms and conditions relative to draws made under the line of credit established by Resolution No. 551 shall henceforth apply: a. Commencing March 1, 2011, all draws on this line of credit shall accrue interest in the amount of 7.5%%, which shall be repaid to the City in quarterly payments until the principal is repaid. b. The Citywide Project Area shall repay the total $600,000 principal balance to the City by June 30, 2011. c. At a minimum, the Merged Project area shall begin repayment of principal in the amount of $1 million per Fiscal Year commencing by June 30, 2026 repaying the entire $5 million balance no later than June 30, 2030. d. The Community Development Commission Executive Director may repay any principal amounts, at any earlier times, with no penalty. Section 2, The Community Development Commission accepts the terms and conditions set forth herein and will repay said loans plus accrued interest, to the City from any available funds of the Agency, including the portion of taxes mentioned in Subdivision (b) of Sanction 33670 of the Health and Safety Code of the State of California, which may legally be utilized for such repayment. This loan will be subordinate to any outstanding bonds issued by the Commission. Section 3. The Commission further authorizes and directs Commission staff to undertake such actions and execute such documents that may be reasonably necessary or convenient to carrying out the administration of the actions authorized by this Resolution, including but not limited to any promissory note, deed of trust, or other security instrument necessary to secure the repayment. Section 4. If any part of this Resolution or its application is held to be invalid, the remainder of the Resolution shall not be affected and shall continue in full force and effect. Section 5. The Commission Secretary shall certify to the passage and adoption of this Resolution and the same shall thereupon take effect and be in force immediately upon its adoption. APPROVED AND ADOPTED this 1st day of March, 2011 ______________________ Chair Steve Herfert Attest: ______________________ Secretary Laurie Carrico I, LAURIE CARRICO, Secretary of the City of West Covina Community Development Commission, West Covina, California, do hereby certify that the foregoing resolution was approved and adopted by the Community Development Commission Board at the regularly scheduled meeting of March 1, 2011, by the following vote: AYES: NOES: ABSENT: ABSTAIN: ___________________________ Secretary Laurie Carrico Approved as to form: __________________________________ Commission Attorney Arnold Alvarez-Glasman City of West Covina TO: Andrew G. Pasmant, City Manager Memorandum and City Council AGENDA FROM: Shannon A. Yauchzee ITEM NO. 7 Public Works Director/City Engineer DATE March 1,2011 SUBJECT: RENEWAL OF THE CITYWIDE LIGHTING AND MAINTENANCE DISTRICT AND LANDSCAPE MAINTENANCE DISTRICTS NOS. 4, AND 7- ORDERING OF ENGINEER'S REPORTS RECOMMENDATION: It is recommended that the City Council adopt the following resolutions: RESOLUTION NO. - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF WEST COVINA, CALIFORNIA, ORDERING THE CITY ENGINEER TO PREPARE AND FILE A REPORT IN ACCORDANCE WITH PROPOSITION 218 AND ARTICLE 4, CHAPTER 1, PART 2, "LANDSCAPING AND LIGHTING ACT OF 1972," BEING DIVISION 15, STREETS AND HIGHWAYS CODE OF THE STATE OF CALIFORNIA, ORDERING CERTAIN LANDSCAPING AND LIGHTING MAINTENANCE IN THE CITY OF WEST COVINA, CALIFORNIA, FOR THE FISCAL YEAR COMMENCING JULY 1, 2011 WEST COVINA LIGHTING AND MAINTENANCE DISTRICT (2011-2012) RESOLUTION NO. - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF WEST COVINA, CALIFORNIA, INITIATING PROCEEDINGS FOR THE CONFIRMATION OF THE WEST COVINA LANDSCAPE MAINTENANCE DISTRICT NO. 4 LEVY AND COLLECTION OF ASSESSMENT WITHIN THAT DISTRICT PURSUANT TO PROPOSITION 218 AND THE LANDSCAPING AND LIGHTING ACT OF 1972 FOR FISCAL YEAR 2011-2012 WEST COVINA LANDSCAPE MAINTENANCE DISTRICT NO. (2011-2012) RESOLUTION NO. - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF WEST COVINA, CALIFORNIA, INITIATING PROCEEDINGS FOR THE CONFIRMATION OF THE WEST COVINA LANDSCAPE MAINTENANCE DISTRICT NO. 6 LEVY AND COLLECTION OF ASSESSMENT WITHIN THAT DISTRICT PURSUANT TO PROPOSITION 218 AND THE LANDSCAPING AND LIGHTING ACT OF 1972 FOR FISCAL YEAR 2011-2012 WEST COVINA LANDSCAPE MAINTENANCE DISTRICT NO. (2011-2012) RESOLUTION NO. - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF WEST COVINA, CALIFORNIA, INITIATING PROCEEDINGS FOR THE CONFIRMATION OF THE WEST COVINA LANDSCAPE MAINTENANCE DISTRICT NO. 7 LEVY AND COLLECTION OF ASSESSMENT WITHIN THAT DISTRICT PURSUANT TO PROPOSITION 218 AND THE LANDSCAPING AND LIGHTING ACT OF 1972 FOR FISCAL YEAR 2011-2012 WEST COVINA LANDSCAPE MAINTENANCE DISTRICT NO. (2011-2012) Z:IAGENDA - 2011IMD4,6,7 & CWD.2011-2012 - Renewal doc Andrew G. Pasmant, City Manager and City Council Page 2 — March 1,2011 BACKGROUND: Cities throughout California have established Maintenance Districts' to fund a variety of public services such as maintenance of street trees, parks, medians, streets, traffic signals, and area lighting. Maintenance Districts can be established using various techniques. Four of the districts in West Covina (MD4, MD6, MD7, and the Citywide District) were established in accordance with the Landscaping and Lighting Act of 1972 (the "1972 Act"). The Citywide Lighting and Maintenance District was established in 1976. As the name implies, this district encompasses the entire City. Prior to Fiscal Year 1997 -1998, the Citywide District funded a variety of public improvements and services which included: street tree maintenance, median maintenance, park maintenance, municipal pool maintenance, area lighting maintenance, traffic signal maintenance, traffic engineering, and street lighting engineering. Since the passage of Proposition 218 in November 1996 and the subsequent property owner approval in July 1997, the Citywide District assessment currently funds only those services that have been designated as a "Special Benefit", which is the maintenance of most of the street lights and street trees within the City. MD4 was established in 1975. This district is located in the southerly part of the City (shown on attached diagram). The assessments collected are used to maintain landscaping, irrigation, hardscape (e.g. sidewalks, walls, etc.), and area lighting on 130 acres of public area within the boundaries of the district. To encourage innovative housing types and neighborhood designs and to preserve the ridgelines in the San Jose Hills, this area was originally developed with relatively narrow street rights-of-way and small lot sizes. The resulting surplus land was converted to landscaped slope areas and park-like "green belt" areas containing walkways, landscaping, and lighting. MD6 and MD7 were established in 1980. These are generally located in the north-facing slopes of the San Jose Hills at the eastern end of the City (shown on the attached diagram). The assessments collected are used to maintain landscaping and irrigation in public areas within the boundaries of the districts. MD6 contains approximately 12 acres of landscaped and irrigated areas and approximately 65 acres of natural area. MD7 contains approximately 7.5 acres of landscaped and irrigated areas and 18.9 acres of natural area but is only 25% developed at this time. When development is complete, MD7 will contain 25 acres of landscaped and irrigated areas and 105 acres of natural area. DISCUSSION: The 1972 Act specifies the procedures for annual renewals of Maintenance Districts (MD's). The first step in the process is the adoption of a resolution ordering the "Engineer's Report" for each district. This report, prepared by staff, includes plans and specifications for improvements, estimated costs, an assessment diagram, and assessment spread for the estimated costs, which upon completion are filed with the Office of the City Clerk. Reports are ordered in accordance with Division 15, Article 4, Chapter 1, Part 2 of the California Streets and Highways Code. The subsequent steps are outlined in the table below along with tentative dates for each action. Maintenance District Action to be Taken Nos. 4, 6, and 7 Preliminary approval of the City Council meeting of Engineer's Reports April 19, 2011 City Council meeting of Public Hearing June 7, 2011 Citywide Lighting and Maintenance District City Council meeting of May 3, 2011 City Council meeting of June 21, 2011 Upon completion of the Engineer's Reports, the City Council will review the documents and set dates for public meetings and hearings as required. At the public hearings, the City Council shall consider all comments for and against the proposed assessment. AGENDA - 2011W1D4,6,7 & CM/2011-2012 - Renewal.doc Andrew G. Pasmant, City Manager and City Council Page 3 — March 1,2011 The City's General Fund finances a portion of the Citywide District through the City's payment of assessments on City-owned properties in the amount of about $24,250. Cost estimates based upon the projected operating and capital budgets for each district will be prepared. Assessment rates sufficient to fund all eligible services will be recommended based upon these cost estimates including contingencies. Increase 10% in assessment rates for MD7 is contemplated at this time based on fiscal year 2011-2012 projections. The assessments rates for MD4 and MD6 are now equal to the rates approved when the districts were established and in order to increase the rates further, it would be necessary to comply with the voting requirements of Proposition 218. In fiscal year 2009-2010, a mail ballot election on an increase of the assessment rates for MD4 was processed and was not approved by the property owners. The voter-approved rates for the Citywide District included a provision for not more than a 2% annual increase based on the Consumer Price Index (CPI). Currently, the CPI for a one-year period from December 2009 to December 2010 for the Los Angeles, Riverside, and Orange County areas increased by 1.3%. The necessity for any increases will be evaluated as part of the Engineer's Reports. ALTERNATIVES: The Streets and Highways Code specifies the required steps for renewing the districts. If the City Council does not wish to continue the districts and wishes to fund the districts from the General Fund, the resolutions are not necessary. FISCAL IMPACT: There is no fiscal impact associated in the ordering of the Engineer's Reports. However, if the Engineer's Reports are not ordered, the process of renewing the MD's cannot proceed and the ability to collect the assessments associated with each district would be lost. illAt A41---n PrearedAT: kMigue ernandez Reviewed/Approved by: Shannon A. Yauchzee Civil Engineering Associate Director/City Engineer Attachments: Attachment No. 1 - MD4 Map Attachment No. 2 - MD6 Map Attachment No. 3 - MD7 Map Attachment No. 4 - Resolutions Z:1AGENDA - 20111N1D4,6,7 & CWD.2011-2012 - Renewal.doe ATTACHMENT NO. 1 CITY OF WEST COVINA MAINTENANCE DISTRICT NO. 4 A TT A CTIMPIn17 xrn CITY OF WEST COVINA MAINTENANCE DISTRICT NO 1 cZi f -S_ 'I CD ,-- 0 i HEMSTEAD . . — - r, HCIRIZOp i . . -, 'Cs - CT. . \-S I 1-13-il 'enP' •=e 40 A., 0 • I Q. 0 0 1/4,) ‘(/ 0 C -Z" I ( 4/7 N - 1 9 ,,. i .0 • n......... / -.. ... n,....... • -... • ft.. •n•n/ ATTACHMENT NO. 3 .‘ CITY OF WEST COVINA MAINTENANCE DISTRICT NO. 7 SUNRISE 1 1 1 t ... ....•"'.w. ... .....t ... \-\• ... 1 I 1 Ln \ \ ---- I coUNTRY \1\11343° 5 KY \II° O ...' N. N N/3'... N N . ? •o — e I Ind. ( I, o' 1 I \ \ CA OESIAC .-, , z 0 t 1 \ cL 6 • 1 — — / \ % 1 11ILI.Sic6 a 3 o z ) n NO) CP -4 o 70 -c n Q. 0 n 11; I n CA\- -0 N ._„ Luc:, iNs,),R4.._ 4 • I>, -3 i ,:- I \ n ,C9\ \C:' F-\ l' 1-' 0 7, ..* 1(1} % 'P ,--n CI .--. 7 I, •• n I- \ Z t1.1 as 0 ai D rt,--, 0 d- n .... 1 .S\''. -------• —. P S -- -- 1 C,' R u • ' ..------' .... , '''' \ ci6)Ci- ......'".......' ... .. ..-••••*"....."-' ... ... 1 ... l................ ... ATTACHMENT NO RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF WEST COVINA, CALIFORNIA, ORDERING THE CITY ENGINEER TO PREPARE AND FILE A REPORT IN ACCORDANCE WITH PROPOSITION 218 AND ARTICLE 4, CHAPTER 1, PART 2, "LANDSCAPING AND LIGHTING ACT OF 1972", BEING DIVISION 15, STREETS AND HIGHWAYS CODE OF THE STATE OF CALIFORNIA, ORDERING CERTAIN LANDSCAPING AND LIGHTING MAINTENANCE IN THE CITY OF WEST COVINA, CALIFORNIA, FOR THE FISCAL YEAR COMMENCING JULY 1, 2011 WEST COVINA LIGHTING AND MAINTENANCE DISTRICT (2011-2012) WHEREAS, the City Council of the City of West Covina, California proposes to levy and confirm an annual assessment pursuant to Proposition 218, Government Code § 537535, and the "Landscaping and Lighting Act of 1972", being Division 15, Part 2, of the Streets and Highways Code of the State of California; and WHEREAS, it is proposed that said Maintenance District shall operate and maintain certain public street lighting and street trees that exist throughout the City located on property owned by the City as approved by mailed ballot pursuant to the procedures set out in Government Code § 537535; and WHEREAS, the procedures to renew this annual assessment are those set out in the Landscaping and Lighting Act and the regulations of Proposition 218 do not apply to the annual confirmation for an assessment which is not to be increased; and NOW, THEREFORE, the City Council of the City of West Covina, California, does hereby resolve as follows: SECTION 1. That the City Engineer shall prepare and file an Engineer's Report in accordance with Article 4, Chapter 1, Part 2, "Landscaping and Lighting Act of 1972" being Division 15, Chapter 2 of the Streets and Highways Code of the State of California, for the maintenance and operation of street lighting and street trees, for subsequent fiscal years. SECTION 2. The City Clerk of the City of West Covina shall certify to the adoption of this resolution. APPROVED AND ADOPTED this l g day of March 201 Mayor Steve Herfert ATTEST: City Clerk Laurie Carrico I LAURIE CARRICO do hereby certify that the foregoing resolution was duly adopted by the City Council of the City of West Covina, California, at their regular meeting thereof held on the 1st day of March 2011, by the following vote of the City Council: AYES: NOES: ABSENT: ity Clerk Laurie Carrico APPROVED AS TO FORM City Attorney Arnold Alvarez-Glasman ZARESOLUTION - 2011\cwd reso 3-1-2011.doc RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF WEST COVINA, CALIFORNIA, INITIATING PROCEEDINGS FOR THE CONFIRMATION OF THE WEST COVINA LANDSCAPE MAINTENANCE DISTRICT NO. 4 LEVY AND COLLECTION OF ASSESSMENT WITHIN THAT DISTRICT PURSUANT TO PROPOSITION 218 AND THE LANDSCAPING AND LIGHTING ACT OF 1972 FOR FISCAL YEAR 2011-2012 WEST COVINA LANDSCAPE MAINTENANCE DISTRICT NO. (2011-2012) WHEREAS; this Assessment District is known as West Covina Landscape Maintenance District No. 4; and WHEREAS; it is proposed that said Maintenance District shall install, construct, maintain, or operate certain landscaping and appurtenant facilities that exist in the area of the West Covina Landscape Maintenance District No. 4; and WHEREAS; since the 1996-1997 Fiscal Year annual confirmation of the levy of these assessment, the voters have adopted Proposition 218 (California Constitution, Article XIII D); and WHEREAS, the West Covina Landscape Maintenance District No. 4 is exempt from the ballot requirements of Proposition 218 providing the assessments do not increase pursuant to Article XIII D, § 3(b) (property owner consent to initial formation); and WHEREAS, no increased assessments, new improvements nor substantial changes in existing improvements within said West Covina Landscape Maintenance District No. 4 are proposed; NOW, THEREFORE, the City Council of the City of West Covina, California, does hereby resolves as follows: SECTION 1. That the above recitals are true and correct. SECTION 2. That the City Engineer shall prepare and file an Engineer's Report in accordance with Article 4, Chapter 1, Part 2, "Landscaping and Lighting Act of 1972" being Division 15, Chapter 2 of the Streets and Highways Code of the State of California and Proposition 218 as applicable for confirmation of such assessments in the same amount commencing with Fiscal Year 2011-2012. SECTION 3. That a certified copy of this resolution be presented to the City Engineer of the City of West Covina for his information and guidance. SECTION 4. That the City Clerk of the City of West Covina shall certify to the adoption of this resolution. APPROVED AND ADOPTED this 1 st day of March 201 Mayor Steve Herfert ATTEST: City Clerk Laurie Carrico ZARESOLUTION - 2011\MD4 reso 3-1-2011.doe I LAURIE CARRICO do hereby certify that the foregoing resolution was duly adopted by the City Council of the City of West Covina, California, at their regular meeting thereof held on the 1 st day of March 2011, by the following vote of the City Council: AYES: NOES: ABSENT: City Clerk Laurie Canico APPROVED AS TO FORM City Attorney Arnold Alvarez-Glasman IRESOL N - 20 11MD4 reso 3-1-2011.doc RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF WEST COVINA, CALIFORNIA, INITIATING PROCEEDINGS FOR THE CONFIRMATION OF THE WEST COVINA LANDSCAPE MAINTENANCE DISTRICT NO. 6 LEVY AND COLLECTION OF ASSESSMENT WITHIN THAT DISTRICT PURSUANT TO PROPOSITION 218 AND THE LANDSCAPING AND LIGHTING ACT OF 1972 FOR FISCAL YEAR 2011-2012 WEST COVINA LANDSCAPE MAINTENANCE DISTRICT NO. 6 (2011-2012) WHEREAS; this Assessment District is known as West Covina Landscape Maintenance District No. 6 and WHEREAS; it is proposed that said Maintenance District shall install, construct, maintain, or operate certain landscaping and appurtenant facilities that exist in the area of the West Covina Landscape Maintenance District No. 6; and WHEREAS; since the 1996-1997 Fiscal Year annual confirmation of the levy of these assessment, the voters have adopted Proposition 218 (California Constitution, Article XIII D); and WHEREAS, the West Covina Landscape Maintenance District No. 6 is exempt from the ballot requirements of Proposition 218 providing the assessment does not increase pursuant to Article XIII D, § 3(b) (property owner consent to initial formation); and WHEREAS, no increased assessment, new improvements nor substantial changes in existing improvements within said West Covina Landscape Maintenance District No. 6 are proposed; NOW, THEREFORE, the City Council of the City of West Covina, California, does hereby resolves as follows: SECTION 1. That the above recitals are true and correct. SECTION 2. That the City Engineer shall prepare and file an Engineer's Report in accordance with Article 4, Chapter 1, Part 2, "Landscaping and Lighting Act of 1972" being Division 15, Chapter 2 of the Streets and Highways Code of the State of California and Proposition 218 as applicable for confirmation of such assessments in the same amount commencing with Fiscal Year 2011-2012. SECTION 3. That a certified copy of this resolution be presented to the City Engineer of the City of West Covina for his information and guidance. SECTION 4. That the City Clerk of the City of West Covina shall certify to the adoption of this resolution. APPROVED AND ADOPTED this l day of March 2011. Mayor Steve Herfert ATTEST: City Clerk Laurie Carrico ZARESOLUTION - 20111MD6 reso 3-1-201! .dut: I LAURIE CARRICO do hereby certify that the foregoing resolution was duly adopted by the City Council of the City of West Covina, California, at their regular meeting thereof held on the l g day of March 2011, by the following vote of the City Council: AYES: NOES: ABSENT: City Clerk Laurie Carrico APPROVED AS TO FORM City Attorney Arnold Alvarez-Glasrnan ZARESOLUTION - 2011 \MD6 reso 3-1-201 I .doc RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF WEST COVINA, CALIFORNIA, INITIATING PROCEEDINGS FOR THE CONFIRMATION OF THE WEST COVINA LANDSCAPE MAINTENANCE DISTRICT NO. 7 LEVY AND COLLECTION OF ASSESSMENT WITHIN THAT DISTRICT PURSUANT TO PROPOSITION 218 AND THE LANDSCAPING AND LIGHTING ACT OF 1972 FOR FISCAL YEAR 2011-2012 WEST COVINA LANDSCAPE MAINTENANCE DISTRICT NO. (2011-2012) WHEREAS; this Assessment District is known as West Covina Landscape Maintenance District No. 7; and WHEREAS; it is proposed that said Maintenance District shall install, construct, maintain, or operate certain landscaping and appurtenant facilities that exist in the area of the West Covina Landscape Maintenance District No. 7; and WHEREAS; since the 1996-1997 Fiscal Year annual confirmation of the levy of these assessment, the voters have adopted Proposition 218 (California Constitution, Article XIII D); and WHEREAS, the West Covina Landscape Maintenance District No. 7 is exempt from the ballot requirements of Proposition 218 providing the assessments do not increase pursuant to Article XIII D, § 3(b) (property owner consent to initial formation); and WHEREAS, no increased assessments, new improvements nor substantial changes in existing improvements within said West Covina Landscape Maintenance District No. 7 are proposed; NOW, THEREFORE, the City Council of the City of West Covina, California, does hereby resolves as follows: SECTION 1. That the above recitals are true and correct. SECTION 2. That the City Engineer shall prepare and file an Engineer's Report in accordance with Article 4, Chapter 1, Part 2, "Landscaping and Lighting Act of 1972" being Division 15, Chapter 2 of the Streets and Highways Code of the State of California and Proposition 218 as applicable for confirmation of such assessments in the same amount commencing with Fiscal Year 2011-2012. SECTION 3. That a certified copy of this resolution be presented to the City Engineer of the City of West Covina for his information and guidance. SECTION 4. That the City Clerk of the City of West Covina shall certify to the adoption of this resolution. APPROVED AND ADOPTED this 1 st day of March 201 Mayor Steve Herfert TTEST: City Clerk Laurie Carrico I LAURIE CARRICO do hereby certify that the foregoing resolution was duly adopted by the City Council of the City of West Covina, California, at their regular meeting thereof held on the 1 51 day of March 2011, by the following vote of the City Council: AYES: NOES: ABSENT: City Clerk Laurie Carrico APPROVED AS TO FORM ity Attorney Arnold Alvarez-Glasman ZARESOLUTION - 2041kMD7 reso 3- i-2011.doc City of West Covina Memorandum AGENDA TO: Andrew G. Pasmant, City Manager and City Council ITEM NO. 8 DATE March 1, 2011 FROM: Shannon A. Yauchzee Public Works Director/City Engineer SUBJECT: REQUEST FOR REALLOCATION OF PROPERTY TAXES LOS ANGELES COUNTY SANITATION DISTRICT NO. 22 (REORGANIZATION NO. 2007-02) LOCATION: EAST OF AZUSA AVENUE BETWEEN AROMA DRIVE AND FAIRGROVE DRIVE (TRACT NO. 53354, 46 RESIDENTIAL LOTS) RECOMMENDATION: It is recommended that the City Council adopt the following resolution: RESOLUTION NO. 2011 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF WEST COVINA, CALIFORNIA, ADOPTING THE JOINT RESOLUTION OF THE BOARD OF SUPERVISORS OF THE COUNTY OF LOS ANGELES, THE BOARD OF DIRECTORS OF COUNTY SANITATION DISTRICT NO. 22 OF THE COUNTY OF LOS ANGELES, AND THE CITY COUNCIL OF THE CITY OF WEST COVINA, CALIFORNIA, APPROVING AND ACCEPTING NEGOTIATED EXCHANGE OF PROPERTY TAX REVENUES RESULTING FROM AN ANNEXATION TO COUNTY SANITATION DISTRICT NO. 22, BEING REORGANIZATION NO. 2007-02. DISCUSSION: At the request of the property owner, the Los Angeles County Sanitation District (LACSD) has submitted an annexation that includes 46 existing residential properties and four common area lots for an allocation of Annual Tax Increment Funds. These lots all were developed as Tract No. 53354 that is located east of Azusa Avenue and between Aroma Drive and Fairgrove Drive. Twenty-seven lots have been improved with homes built on them and 19 lots remain vacant. In order for the properties to connect to the sewer, LACSD requires the parcel be annexed to a Sanitation District. Since the passage of Proposition 13, provisions of the California Revenue and Taxation Code have been adopted which specify that prior to an area being annexed to a special district, the property tax revenue for the area shall be reallocated, as previously negotiated between the agencies receiving property tax revenue from the area. Many of the undeveloped areas in the City are not currently annexed to the LACSD, and in order to develop, the area must be annexed to a district so that they can receive sanitary sewer service. The LACSD provides both sewage treatment facilities and major sewer lines connecting the City's sewer system to sewage treatment plants. The construction, maintenance, and operation of these district facilities are funded by a combination of an ad valorem property tax and individual sewer assessment fees. ALTERNATIVES: There are no other alternatives if the properties are to be legally developed with the sewer improvements in accordance with the provisions of local ordinances and State statutes. If the City Council chooses not to approve the proposed exchange of property tax revenues, the proposed annexation would not go forward and the area within the annexation would not have the rights to receive sanitary sewer services. ZAAGENDA -201 11Properiy Tax Sharing Request Annex Reorgan 20002.doe Andrew G. Pasmant, City Manager and City Council Page 2 — March 1.2011 FISCAL IMPACT: The reallocation of the property tax proportionately reflects the existing tax allocation in the majority of the City, which is already in the LACSD. The reduction in the City's future property tax revenue in favor of the LACSD for the proposed annexation area is about 0.15% of the City's apportionment of the property tax. A religious organization owns most of the land in the proposed annexation area and since religious organization properties are not taxed, the amount being reallocated to the LACSD is based on the four privately owned properties' assessed values. Since the assessed value for these properties have yet to be determined, the amount of property taxes paid will be used to determine the reduction in the City's future property tax revenue in favor of the LACSD. The annual tax increment for the City of West Covina TD #1 is derived as follows: Tax Rate Area 12722: Property Tax paid in 2009-2010 = $242,528 City's apportionment is $33,081 (13.6401% of $242,528) Sanitation District's share is $48.65 (0.147% of $33,081) The total adjusted amount represents a reduction of $48.65 of the City's annual tax apportionment attributable to the land within the boundary of the annexation. t( • Prepared A by iguel Hernandez Civil Engineering Associate Reviewed/Approveb by: Shannon A. Yauchzee Director/City Engineer Reviewed/Approved by: Finance Attachment No.1 Map Attachment No.2 County Sanitation Districts of Los Angeles Joint Resolution (City) Attachment No.3 Resolution ZAAGENDA - 2011Wropeny Tax Sharing Request Annex Reorgan 2007-02.r/oc DOUBLECROVE \ 1 4 // '" 1:nV.' .1 LA PUEN7E Sphere Boundary (..1 4/1 E A hq © GA 0 / t:: **WA% !,..• 411r 41 PCL 2 POINT for District 15 > • •'• D13-- • - CITY a o z . LP t. Q:. 1,04A 'A t•*4 '4 . .4 OF BEGINNING ---- — New > ..:tp " -4,41 ,,,V •n _...1-- L9 ... • --. -- .1- . - • - • - -. Nu': 1 ... Dist! tc t 15 / , . 1 '4. ,'4 i • cut. t..s.." • 1 ‘ ii - 1,..., - ._ . _Ar_Q4P!_ .--:_.-- 4.4. CY 4 - 4.4. ,..• Sphere Boundary n? DOUBLEGROVE ST . 0 UBE SOR 4 4, °3 C.P 1. . - ter-if -61.1 C.17'7\ 4!) ‘ 1. 2_, (..) , Q 40' (I' .,>:* •• o'' c.; / A... .t.i , to ,o+, 4 ••, .4,, ' .., 074 0,t M.B.818, 80 - 62 TR. NO. 29126 REORG. NO. 2007-02 G.S.D. NO.15 64 1 * C.S.D. NO. 22 1 •••C' ST 44 4:4•-• tu • 4., - 14)04. ./ I 0 OF . ... • he 0 : - — SEE DETAJL C N- 1 '44 %••• :4" vr. t 4 © 44 , ? : ' ' - i % i (..7-8--92.1 0 '40. , A ,.f, , 0A II, nS' 1. .6} .• 4, c• , ,Iv:- O.. 4.0e- .,.,.• • /3-9-172.1 • ..'i.t!,.! ..j.10. IF t . • .$ - .4 •'' 11. C.) 0•.Z• /1/4 .*.a; • --• . __.. 0 .....,' :7. 1%1. LINE AND COURSE DATA 15-1-721 `'• • L8 N 74' 22'06" W 850.25' ,,i; L9 S 80' 3938" E 30.35' 4/ Cli) ,-, A....ANkc,,,,, ' 77, ,:'' 7.<..:-..,/ -,,,,,-„, . V ci v -7 S80' 39.38"E ,043. • , 17.50' 4..4* "— (VACATED) ( I n,,, ,4 I 4 0. OF BEGINNING Lb o S 00' 3749" W 1863.38' .14. ce?6.6, (6.--6,--571 7/4.9 A;v,,,1-1.,',?. ls"-:--'1) • ,., :1 4t) ; 4 C.S.D. No. 22, Z 0) '. n _AL--- (Detach from L12 N 00' 3749" E 1659,94' r /i'''\ ;i-\•.fe „,:',,, -; . ::, A. r9 _ . tki I:: Annex to L11 N 74' 22'01r W 31.06' 44•19 I 417 / ;'('',, ?h...4:-. AL 0 ("/ ,--:( \ ''''• /./,•.., A. OF 0 tli,o.'" ''''''' Pciin '.415.— OM 4+0 •••*• 44) • • 0:0 P 4 L9 C.S.D. No. 15) NEW • / ,,,,,, 4'),. / 1"-1 , '•-• ‘P, / I n -- , ,V; f':-P ifer'''ly ••' 0 li Iy I ti' (VACATED) • 44, , ..0,•,s . ....nR .. 73 •'..Y •°°:'''' -• . _ • - - — • ... CRE-sr ta , e: .1-',.Or { ,,..,J if tr,:4 , ' ;//,',' . * „ ( --,40/ ,7 v--- ,-,..firtn ,,mr -Ai _ -. • ik. ' i. ',4.A.,,:Vir-ji ,ir--,IVj'. . TI,,,OM (.7--9-4F1 Zi• :::1 1 ;.,,Z..1 <, .• 6,01 Z „.. ,*' 5 ORGR°VE AVE. 0 ... . NV' "1.:k ' / --s!,/17 Z-1,0 \MT/inif:iflf :1•Iven z ,.., .. iir---,.,v--1-.4, ,i it ,, ,-, ---,-...- 11 "rdn 4,41) • . 04, •• • 00 , • *-- ,& TR. NO. 33375 ' e// re , -1:41 /I I '' ' r''1' 4 44:f VA 0 --- . .... ..r 41., 1 • ,4P A ' '0*.t P, 0 - _ /) A itl: M.B. 695, 59-60 11) 0o •P pRo1.1A oR *53. 1\-. C•51 (J-8- o• 21 2 fei CI C) 1 12-28-71 s I .1 / ' 1 j ... 4.., .......... ev 1r oFPCL / , BEG/AIN/NG r-O/NT -'--.Z., ::#4 ..• • • 4 .c---------- t• 4 E. / .°••••• +.• ••• DETAIL C NO SCALE -N- 0 I 73 P.M. NO 80193 SW'LY LINE / s . • ••• , i I • ,..‘ / ",,,t"'1,4•,;..-.41'0 %,.., c) P.M. B., 338. 93 - 100 F:E51.77 co viy-44 rr-A, gl /a g) _ Al Al OF LOT 13 ''',-. (4 \i„ ...!... ..,.. / , n••••„••• , / •••••••/ .- 9 / 1.4•7 - 9 ‘4r\ A 7171 f „OA:filt / ., rft'",'-:.*.:'': 4 ', Ct•-- rE''' • U 9 au 0.....) - ASSESSOR'S kT, tfte,..4 PARCEL NUMBERS APN 8493 081 001 - 058 PCL 1 POINT Prior Annexations shown thus OF BEGINNING Boundary of Co.San.DIst.No.22 prior to (Annex to Annexation/Detachment C.S.D. No, 15) Boundary Co.San.D Ist.No. 15 prior to Annexation/Detachment Area of Annexation / Detachment Li N 74' 22'08" W L2 N 34' 5024" E L3 S 53* 0851" E L4 N 34' 5024" E L5 N 34' 50'24" E CB R-1500' L-895.61' L7 S 00' 37'49'"N 5.29' 560.37' 5.00' 114.17' 328.54 D-34'12'35" 1889.71' 27 • x,...t, 044 7 Ke.pt: i OETAL A NO SCALE 4,3,,, ...".., t...). _,,,.., 41 ,i'''i' 2 :7,,, , doe.. °D "3 At., (.4' .:1n%':'' 1;,'," - PQ. 2 . .... . .... **•:• 41. , ,1,,fihpn 1"4 4- Cf c., ../ . It:, f ' • ; r .;14-t. qo; c.s.D. N 0 . 10.4. •.- —44;,;,. ,-..-_. . -',,O.. , 4: 2 2 IF.E157 CO VINA s, OT 4- 4, 0 6,oe. 6-,.... ........ 6 , 45„,...c.,. 4 1% 6' / ;...?,,, 44 •T••/. igb i . ,, ‘ 4, • ,,, / .:`,'' .',7,'", i,;:2' ,i'..:,'•ir ' ' ',1 n all in 1 cp+ co ,... / SI'S: •sr 044. •••4, VICINITY MAP PIO SCALE 1'4, -4s, 44,,e4 ' .,• , .,-1,... <,.. ~ poi ‘ 0, •-n +AP • • 11(04 :.• 144 OF AZUSA AVE PCL 2 POINT NE'LY LINE LOT 44 0 a 200' 400 4TY SANITATION DISTRICT NO.15&22 OF LOS ANGELES COUNTY. CALIF. OFFICE OF CHIEF ENGINEER STEPHEN R. MACUIN CHIEF ENGINEER AND GENERAL MANAGER REORGANIZATION NO. 2007-02 ANNEXATION NO. 15-289 Roca' dad Parcel 1 101041 Parcel 2 *fps!' Total 14.002 1.144 15.146 Acres 0.022 0.002 0.024 Square Miles DETAIL B NO SCALE Attachment No JOINT RESOLUTION OF THE BOARD OF SUPERVISORS OF THE COUNTY OF LOS ANGELES ACTING IN BEHALF OF Los Angeles County General Los Angeles County Library Los Angeles County Fire-FFW Los Angeles County Flood Control THE BOARD OF DIRECTORS OF COUNTY SANITATION DISTRICTS NOS. 15 AND 22 OF LOS ANGELES COUNTY, AND THE GOVERNING BODIES OF City of West Covina Upper San Gabriel Valley Municipal Water District APPROVING AND ACCEPTING NEGOTIATED EXCHANGE OF PROPERTY TAX REVENUES RESULTING FROM PROPOSAL ENTITLED: "REORGANIZATION NO. 2007-02" (Detachment from County Sanitation District No. 22 and Annexation to County Sanitation District No. 15) WHEREAS, pursuant to Section 99 and 99.01 of the Revenue and Taxation Code, prior to the effective date of any jurisdictional change which will result in a special district providing a new service, the governing bodies of all local agencies that receive an apportionment of the property tax from the area must determine the amount of property tax revenues from the annual tax increment to be exchanged between the affected agencies and approve and accept the negotiated exchange of property tax revenues by resolution; and WHEREAS, the governing bodies of the agencies signatory hereto have made determinations of the amount of property tax revenues from the annual tax increments to be exchanged as a result of the reorganization of territory entitled Reorganization No. 2007-02, which includes detachment of a portion of said territory from County Sanitation District No. 22, and annexation to County Sanitation District No. 15. NOW, THEREFORE, BE IT RESOLVED AS FOLLOWS: 1. The negotiated exchange of property tax revenues resulting from the annexation of Parcel 1 to County Sanitation District No. 15 in the proposal entitled Reorganization No. 2007-02 is approved and accepted. 2. For each fiscal year commencing on and after July 1, 2011, or after the effective date of this jurisdictional change, whichever is later, the County Auditor shall transfer from County Sanitation District No. 22 the annual tax increment attributable to the land area within Parcel 2 (Tax Rate Areas 09365 and 09471) and transfer said tax increment to County Sanitation District No. 15. 3. For each fiscal year commencing on and after July 1, 2011, or after the effective date of this jurisdictional change, whichever is later, the County Auditor shall transfer to County Sanitation District No. 15 a total of 0.824658 percent of the annual tax increment attributable to the land area encompassed within Parcel 1(Tax Rate Area 12722) in the proposal entitled Reorganization No. 2007-02. 4. No additional transfer of property tax revenues shall be made from any other taxing agencies to County Sanitation Districts Nos. 15 and 22 as a result of proposal entitled Reorganization No. 2007-02. 5. No transfer of property tax increments from properties within a community redevelopment project, which are legally committed to a Community Redevelopment Agency, shall be made during the period that such tax increment is legally committed for repayment of the redevelopment project costs. 6. If at any time after the effective date of this resolution, the calculations used herein to determine initial property tax transfers or the data used to perform those calculations are found to be incorrect thus producing an improper or inaccurate property tax transfer, the property tax transfer shall be recalculated and the corrected transfer shall be implemented for the next fiscal year, and any amounts of property tax received in excess of that which is proper shall be refunded to the appropriate agency. The foregoing resolution was adopted by the Board of Supervisors of the County of Los Angeles, the Board of Directors of County Sanitation District No. 15 of Los Angeles County, and the governing bodies of City of West Covina and Upper San Gabriel Valley Municipal Water District, signatory hereto. CITY OF WEST COVINA SIGNATURE PRJNT NAME AND TITLE ATTEST: Secretary Date (SIGNED IN COUNTERPART) ATTACHMENT NO. RESOLUTION NO. RESOLUTION NO. 2011 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF WEST COVINA, CALIFORNIA, ADOPTING THE JOINT RESOLUTION OF THE BOARD OF SUPERVISORS OF THE COUNTY OF LOS ANGELES, THE BOARD OF DIRECTORS OF COUNTY SANITATION DISTRICT NO. 22 OF THE COUNTY OF LOS ANGELES, AND THE CITY COUNCIL OF THE CITY OF WEST COVINA, CALIFORNIA, APPROVING AND ACCEPTING NEGOTIATED EXCHANGE OF PROPERTY TAX REVENUES RESULTING FROM AN ANNEXATION TO COUNTY SANITATION DISTRICT NO. 22, BEING REORGANIZATION NO. 2007-02. WHEREAS, there are certain areas within the City of West Covina which are to be annexed to the County Sanitation District of the County of Los Angeles; and WHEREAS, pursuant to Section 99 and 99.1 of the Revenue and Taxation Code, prior to the effective date of any jurisdictional change which will result in a special district providing a new service, the governing bodies of all local agencies who receive an apportionment of the property tax from the area must determine the amount of property tax revenues from the annual tax increment to be exchanged between the affected agencies and approve and accept the negotiated exchange of property tax revenues by resolution; and WHEREAS, there has been prepared a joint resolution of the Board of Supervisors of the County of Los Angeles, the Board of Directors of County Sanitation District No. 22 of the County of Los Angeles, and the City Council of the City of West Covina; and WHEREAS, this joint resolution specifies the negotiated exchange of property tax revenues for Annexation Reorganization No. 2007-02 for each fiscal year commencing on and after July 1,2011. NOW, THEREFORE, the City Council of the City of West Covina does hereby resolve as follows: SECTION 1. That the joint resolution of the Board of Supervisors of the County of Los Angeles, the Board of Directors of County Sanitation District No. 22 of the County of Los Angeles, and the City Council of the City of West Covina approving and accepting negotiated exchange of property tax revenues resulting from annexation to County Sanitation District No. 22 being Annexation Reorganization 2007-02 are hereby adopted. SECTION 2. That the Mayor and City Clerk are hereby authorized to execute said joint resolution indicating adoption by the City Council of the City of West Covina. SECTION 3. That the City Clerk shall certify to the adoption of this resolution and send a certified copy to the County Sanitation Districts of the County of Los Angeles. APPROVED AND ADOPTED this 1 st day of March 201 Mayor Steve Herfert ATTEST: City Clerk Laurie Carrico I LAURIE CARRICO, CITY CLERK of the City of West Covina, California, do hereby certify that the foregoing resolution was duly adopted by the City Council of the City of West Covina, California, at a regular meeting thereof held on the 1 st day of March 2011, by the following vote of the City Council: AYES: NOES: ABSENT: City Clerk Laurie Carrico APPROVED AS TO FORM: City Attorney Arnold Alvarez-Glasman &RESOLUTION - 20111Property Tax Sharing No 21-Annexrcorgan 2007-02.doc