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06-07-2011 - West Covina Landscape Maintenance District No. 4 - Item 17 (2).pdfCity of West Covina Memorandum TO: Andrew G. Pasmant, City Manager and City Council FROM: Shannon A. Yauchzee, Director/City Engineer Public Works Department AGENDA ITEM NO. 17 DATE June 7, 2011 SUBJECT: WEST COVINA LANDSCAPE MAINTENANCE DISTRICT NO. PUBLIC HEARING RECOMMENDATION: is recommended that the City Council adopt the following resolution: RESOLUTION NO. - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF WEST COVINA, CALIFORNIA, CONFIRMING THE ENGINEER'S REPORT AND THE ASSESSMENT CONTAINED IN THAT REPORT FOR LANDSCAPE MAINTENANCE DISTRICT NO. 4; ORDERING LANDSCAPING MAINTENANCE, RENOVATION AND REPLACEMENT AND APPURTENANCES TO BE MAINTAINED FOR FISCAL YEAR BEGINNING JULY 1, 2011 DISCUSSION: Maintenance District No. 4 was established in 1975 pursuant to the Landscaping and Lighting Act of 1972. The district was created at the request of the owner of the developments in lieu of forming a Homeowners' Association. The district is located in the southeasterly part of the City (Attachment "A"). The funds collected are used to maintain landscaping, irrigation, hardscape, and paseo lighting on 130 acres of public open space within the boundaries of the district. To encourage innovative housing types and neighborhood designs, and to preserve the ridgelines of the San Jose Hills, this area was developed with relatively narrow street right-of-ways and small lot sizes. The resulting surplus of land was converted to landscaped slope areas and park-like "green belt" areas containing walkways, landscaping, and lighting. At the regular meeting of April 19, 2011, the City Council preliminarily approved the Engineer's Report (Attachment "B") prepared pursuant to the provisions of the "Landscaping and Lighting Act of 1972" and Proposition 218. On April 19, 2011, the City Council adopted Resolution No. 2011-19 declaring its intention to levy and collect the assessment and set June 7, 2011, as the date for the public hearing. The preliminary approval of the Engineer's Report by the City Council does not commit the City Council to adopt the proposed levy for the district. During or after the public hearing, the City Council may order the reduction of the rates and changes in expenses that are funded by the district. The City Council's action only becomes final when the assessments are confirmed by resolution upon the completion of the public hearing. The next step in the confirmation of the district is the approval of the assessment rates at the public hearing. At the public hearing, the City Council will consider all written and oral comments regarding the level of assessments, maintenance, and capital improvement work being proposed. Upon the conclusion of the public hearing, the City Council should adopt a resolution confirming the diagram and assessment levy either as proposed or as revised by the City Council. ALTERNATIVES: The City Council may choose: Staff recommends maintaining the assessment rates at their current level. The attached "10- Year Fiscal Projection" shows rates being maintained at their current level and a depletion of the reserves over the ten-years (Attachment "D"). Andrew G. Pasmant, City Manager and City Council Page 2 — June 7, 2011 To reduce the assessment rates, the district's reserve will deplete at a faster pace requiring the City's General Fund to subsidize the district. The City Council is precluded from setting a higher rate structure than presently proposed unless the renewal process begins anew and a mail ballot election is held in compliance with Proposition 218. The process consists of the approval of a new Engineer's Report and setting dates for the public meeting and hearing. Upon the conclusion of the public hearing, the City Council should adopt a resolution confirming the diagram and assessment levy either as originally proposed or as changed by the City Council. FISCAL IMPACT: The Fiscal Year 2011-2012 Engineer's Report for Maintenance District No. 4 recommends that the assessment rates be maintained at their current levels. The annual rates in Maintenance District No. 4 will be maintained at $348.02 for a single dwelling unit. The projected income from the recommended rates is $1,040,000. In addition, $27,500 is projected to be received from two other sources: $11,000 from Maintenance District No. 2 for costs of maintenance in an overlap area between Maintenance District No. 2 and Maintenance District No. 4, and $16,500 from interest income. The total projected revenue is $1,067,500. The proposed Operating Budget for the district in Fiscal Year 2011-2012 is $1,031,723 and is a decrease of 2.63% when compared to the approved/amended budget of $1,059,569 of Fiscal Year 2010-2011. The proposed Operating Budget funds only the regular landscape maintenance. Ongoing improvements such as irrigation system improvements, enhancement to existing landscaping, tree trimming, and other extras are being eliminated to maintain the operating budget within projected revenues from the capped assessment rates. No new Capital Improvement Program (CIP) projects are proposed. There are no legal requirements or formal guidelines for the amount of reserves in an assessment district, however at least 50% is required to cover cash flow. A reserve between 100% and 200% is recommended by staff to cover cash flow, future capital projects, and emergencies. AL • ed Miguel Hernandez Civil Engineering Associate Reviewed/Approved by: Finance Attachments: "A" - MD4 Map "B" - 15 Year Rate History "C" - MD4 Engineers Report - MD4 10 Year Fiscal Projection - Chart "F" - Resolution Reviewed/Approved by: Shannon A. Yauchzee Director/City Engineer Z :1AGEN DA - 201 l\MD4 PubHearing 2011-2012.doc ATTACHMENT "A" CITY OF WEST COVINA MAINTENANCE DISTRICT NO. 4 ATTACHMENT "B" MAINTENANCE DISTRICTS NO. 4 15-YEAR ANNUAL RATE HISTORY Fiscal Year Per unit per zone Highest shown * Proposed 2011-12 $ 464.00 2010-11 $ 464.00 2009-10 $ _ 464.00 2008-09 $ 464.00 2007-08 $ 464.00 2006-07 $ 464.00 2005-06 $ 455.87 2004-05 $ 414.43 2003-04 $ 376.80 2002-03 $ 348.88 2001-02 $ 348.88 2000-01 $ 348.88 1999-2000 5 348.88 1998-99 $ 348.88 1997-98 $ 348.88 1996-97 $ 348.88 MD4 has nine (9) separate zones of benefit with varying assessment rates from $49.16 to $464.00 per assessment unit. The zone shown in the table is for a parcel with a duplex and is the highest assessment per parcel. All other rates and zones are shown on page 12 of the Engineer's Report. ZAAGENDA - 20 1110D4 PubHearing 2011-2012.doe April 5,2010 Landscape Maintenance District No. 4 ATTACHMENT "C" ENGINEER'S REPORT FISCAL YEAR 2011-2012 CITY OF WEST COVINA LANDSCAPE MAINTENANCE DISTRICT NO. 4 March 11,2011 Landscape Maintenance District No. 4 TABLE OF CONTENTS Report 1 Part A - Plans and Specifications 3 Part B - Estimate of Costs 4 Part C - Assessment Rolls 5 Part D - Method of Apportionment 5 Summary of Assessments 9 Part E - Property Owners List 10 Part F - Assessment Diagram 10 March 11,2011 Landscape Maintenance District No. 4 CITY OF WEST COVINA FISCAL YEAR 2011-2012 ENGINEER'S REPORT PREPARED PURSUANT TO THE PROVISIONS OF THE LANDSCAPING AND LIGHTING ACT OF 1972 SECTION 22500 THROUGH 22679 OF THE CALIFORNIA STREETS AND HIGHWAYS CODE Pursuant to Part 2 of Division 15 of the Streets and Highways Code of the State of California, and in accordance with the Resolution of Intention adopted by the City Council of the City of West Covina, State of California, in connection with proceedings for: CITY OF WEST COVINA LANDSCAPING MAINTENANCE DISTRICT NO. Hereinafter referred to as the "Assessment District" or "District", 1, Shannon A. Yauchzee, P.E,, the Public Works Director/City Engineer of the City of West Covina, submit herewith the "Report" consisting of six (6) parts as follows: PART A PLANS AND SPECIFICATIONS Plans and specifications for the improvements are as set forth on the lists thereof, attached hereto, and are on file in the Office of the City Engineer and incorporated herein by reference. PART B ESTIMATE OF COST An estimate of the costs of the proposed improvements, including incidental costs and expenses in connection therewith, is as set forth on the lists thereof, attached hereto, and are on file in the Office of the City Clerk and incorporated herein by reference, PART C ASSESSMENT ROLLS An assessment of the estimate cost of the improvements on each benefited lot or parcel of land within the Assessment District. PART D METHOD OF APPORTIONMENT The method of apportionment of assessments, indicating the proposed assessment of the net amount of the costs and expenses of the improvements to be assessed upon the several lots and parcels of land within the Assessment District, in proportion to the estimated benefits to be received by such lots and parcels. The Assessment Roll is filed in the Office of the City Clerk and by reference is made a part hereof. PART E PROPERTY OWNER LIST A list of names and addresses of the owners of real property within the Assessment District, as shown on the last equalized roll of the Assessor of the County of Los Angeles. The list is keyed to the records of the Assessor of the County of Los Angeles, which are incorporated herein by reference. March 11,201! Landscape Maintenance District No. 4 PART F ASSESSMENT DISTRICT DIAGRAM The Diagram of the Assessment District Boundaries showing the exterior boundaries of the Assessment District, the boundaries of any zones within the Assessment District and the lines and dimensions of each lot or parcel of land within the Assessment District is on file in the Office of the City Engineer and incorporated herein by reference. The lines and dimensions of each lot or parcel within the Assessment District are those lines and dimensions shown on the maps of the Assessor of the County of Los Angeles for fiscal year to which this report applies. The Assessor's maps and records are incorporated by reference herein and made a part of this report. March 11, 20H Landscape Maintenance District No. 4 PART A PLANS AND SPECIFICATIONS The facilities, which have been constructed within the City of West Covina, and those which may be subsequently constructed, will be serviced and maintained as generally described as follows: DESCRIPTION OF IMPROVEMENTS FOR THE CITY OF WEST COVINA LANDSCAPE MAINTENANCE DISTRICT NO. 4 The existing facilities to be maintained and serviced include public open space, area lighting, parkway, and manufactured slopes and appurtenant facilities. There are approximately 130 acres of open space within the District. The District will ftmd the costs in connection with the district maintenance and servicing including, but not limited to, personnel, electrical energy, water, materials, contracting services, and other expenses necessary for the satisfactory operation of these facilities. Reference is made to Part "D" of this report for a discussion of the Zones of Benefit and the facilities associated with them, which are serviced and maintained. The facilities are described as follows: Landscaping and Appurtenant Facilities Facilities include but are not limited to: landscaping, planting, shrubbery, trees, irrigation system, hardscape, fixtures, sidewalk maintenance resulting from landscape growth and appurtenant facilities, in public right-of-ways, parkways, and dedicated easements within the boundaries of said Assessment District. Lighting and Appurtenant Facilities Facilities include but are not limited to: poles, fixtures, bulbs, conduits, conductors, equipment including guys, anchors, posts and pedestals, metering devices and appurtenant facilities as required to provide lighting in the public right-of-ways and dedicated easements within the boundaries of said Assessment District. Maintenance means the furnishing of services and materials for the ordinary and usual operation, maintenance and servicing of the landscaping, public lighting facilities and appurtenant facilities, including repair, removal or replacement of all or part of any of the landscaping, public lighting facilities or appurtenant facilities; providing for the life, growth, health, and beauty of the landscaping, including cultivation, irrigation, trimming, spraying, fertilizing and treating for disease or injury; the removal of trimmings, rubbish, debris and other solid waste; and the cleaning, sandblasting and painting of walls and other improvements to remove or cover graffiti. Servicing means the furnishing of water for the irrigation of landscaping and the maintenance of any of the public lighting facilities and furnishing of electrical energy for the public lighting facilities or for the lighting or operation of landscaping or appurtenant facilities. The plans and specifications for the improvements are on file in the Office of the City Engineer and are by reference herein made a part of this report. 6 March 11,2011 Landscape Maintenance District No. 4 PART B ESTIMATE OF COST The City's budget for the operation and services costs, shown below, detail the estimated costs and fund balances for Fiscal Year 2011-2012 as available at the time of preparation of this report. The 1972 Act provides that the total cost can be recovered in the assessment spread including incidental expenses. The latter can include engineering fees, legal fees, printing, mailing, postage, publishing, and all other related costs identified with the district proceedings. EXPENDITURES Estimated expenditures for maintenance and operation for Fiscal Year 2011-2012 are as follows: DIRECT MAINTENANCE A. Personnel Services $ 198,013 Sub-total 198,013 B. Material and Services 1. Maintenance Contracts 7 . Graffiti Removal 3. Utilities (electricity & water) 4. Building Maintenance and Repair 5. Maintenance Supplies 6. Property and Liability Insurance 7. Administration and Overhead Sub-total $ 381,690 $ 5,000 $ 327,700 $ 7,050 $ 19,034 $ 3,817 $ 79,491 823,782 0 $ 1,021,795 C. Equipment Outlay TOTAL ENGINEERING AND INCIDENTALS A. Personnel Services TOTAL III. TOTAL OPERATING BUDGET IV. FUND TRANSFER TOTAL V. CAPITAL IMPROVEMENT TOTAL V1. TOTAL OPERATING AND CAPITAL BUDGE V11. CONTINGENCY AND RESERVES 9,928 1,031,723 3,575 $ 1,035,298 A. Cash Flow Reserves $ 515,862 B. Contingency $ 1,161,679 TOTAL CONTINGENCY AND RESERVES $1 677 541 TOTAL DISTRICT EXPENDITURES $2,712,839_ March I 1, 2011 Landscape Maintenance District No. 4 REVENUES Projected revenues available to the District for Fiscal Year 2011-2012 are as follows: Assessment Income $ 1,040,000 IL Interest 16,500 III. Reimbursement from MD 2 11 000 TOTAL PROJECTED REVENUE S 1,067,500 ADJUSTED FUND BALANCE (Prior fiscal year) $ 1,645,339 TOTAL FUNDS AVAILABLE S 2,712,839 The 1972 Act requires that a special fund be set-up for the revenue and expenditures of the district. Funds raised by assessment shall be used only for the purpose as stated herein. A contribution to the District by the City may be made to reduce assessments, as the City Council deems appropriate. Any balance or deficit remaining on July V I must be carried over to the next fiscal year. PART C ASSESSMENT ROLL The proposed assessment, commencing with Fiscal Year 2011-2012, and amount of assessment apportioned to each lot or parcel, as shown on the latest roll at the Assessor's Office, are contained in the Assessment Roll on file in the Office of the City Clerk of the City of West Covina, which is incorporated herein by reference. The description of each lot or parcel is part of the records of the Assessor of the County of Los Angeles and these records are, by reference, made part of this Report. PART D METHOD OF APPORTIONMENT OF ASSESSMEN Part 2 of Division 15 of the Streets and Highways Code, the Landscaping and Lighting Act of 1972, permits the establishment of assessment district by cities for the purpose of providing certain public improvements which include the construction, maintenance and servicing of street lights, traffic signals, landscaping, and park and recreational facilities. Section 22573, Landscaping and Lighting Act of 1972, requires that maintenance assessments be levied according to benefit rather than according to assessed value. This section states: "The net amount to be assessed upon lands within an assessment district may be apportioned by any formula or method which fairly distributes the net amount among all assessable lots or parcels in proportion to the estimated benefits to be received by each such lot or parcel from the improvements." Because assessments are levied on the basis of benefit, they are not a tax, and, therefore, are not governed by Article XIIIA of the California Constitution. The Act permits the designation of zones of benefits within any individual assessment district if "by reason of variation in the nature, location, and extent of the improvements, the various areas will receive different degrees of benefit from the improvements." (Section 22574.) Thus, the 1972 Act requires the levy of a true "assessment" rather than a "special tax." March 11.2011 Landscape Maintenance District No. 4 The Act also permits certain parcels to be exempt from assessment. Excepted from these assessments are areas of all publicly owned property such as: public streets, public avenues, public lanes, public roads, public drives, public courts, public alleys, all public easements, and right-of-ways, all public parks, public greenbelts and parkways, and all public property being used for public purposes. BENEFIT ANALYSIS All parcels in the City of West Covina Landscape Maintenance District No. 4 derive benefit from the open space maintenance. The intent of this report is to establish a methodology that fairly distributes the cost of the system in relation to the benefit received. The assessment ratio for all properties is based on dwelling units. Each single family residential parcel, condominium complex, apartment, duplex, multi-family residential, and other developed land, is assessed per dwelling unit. This pro-ration accounts for an adjustment for street right-of- ways and public easements In the Fiscal Year 2011-2012, the City Council ordered a report to comply with the benefit analysis of Proposition 218. In compliance with Proposition 218, the City will submit the District's benefit analysis methodology and assessment rates to the property owners to vote in support of or in opposition. Proposition 218 requires that the "general" benefit to the public at large identified for any of the landscape and lighting maintenance services being funded through an assessment district may not be assessed to the parcels in the district. Only the "special" benefit of the landscape and lighting maintenance may be assessed to the parcels in the District. Every parcel assessed within the District receives a particular and distinct special benefit from the improvements. The general benefit to the public at large from the landscaping and lighting maintenance services provided by the City would be realized by traffic passing through the District, and would be immeasurable. Therefore, from a public use perspective, the landscaping, paseo lighting, and open space maintenance provides only a direct and special benefit to those parcels in the District. Further, the assessments do not include the costs of other general benefits received by the public within the District such as fire or police services. Therefore, the assessed parcels in the District are assessed only for the special benefits received above and beyond the general benefits received by all residents in the City. MD 4 BENEFIT ZONES DESCRIPTIONS. Al Parcels in this zone are commercial properties, which are located at the intersections of major arterial roadways. These parcels are benefited by the district improvements to a lesser degree due to their proximity to the open space areas. Nonetheless, the parcels are benefited by aesthetically pleasing landscaping and open space areas which enhance the desirability of living in the district, on account of its promotion of evening business and industry vitality, and contribution to a positive nighttime visual image. A2 Parcels in this zone are condominium type homes with open space areas located along the fringes of the zone. Due to the nature and higher density of the parcels and the higher intensity of the property use, the parcels derive benefits such as providing a more peaceful and relaxed lifestyle due to the surrounding open space areas. A3 Parcels in this zone are made up of condominiums and apartment complexes with smaller areas of open space within the zone. On account of the denser housing within this zone, Zone A3 is distinctly benefited by the interspersed open space areas within the zone. Although open space areas are smaller than in other zones, the incorporation of such areas into Zone A3's higher-intensity property uses peculiarly benefits A3's parcels by providing aesthetically pleasing landscaping and enhancing the desirability of living in Zone A3. A4 Parcels in this zone are condominium type homes. The open space areas are in close proximity to the condominiums in this zone, thus providing the zone's parcels March U,2011 Landscape Maintenance District No. 4 with benefits such as the enhancement of the quality of life within the community characterized by openness, landscape and natural vistas, wildlife and relaxed, peaceful living. AS Parcels in this zone are made up of detached single-family homes with large open space areas in close proximity. Zone A5 parcels derive a benefit particular to their zone, based on the significant size and proximity of the open space areas to the parcels. The large open spaces in the vicinity of the parcels contribute to lower housing density due to the dedication of acreage for landscaping and natural areas, which thereby reduce the number of buildable parcels. A6 Parcels in this zone are made up of detached single-family homes with open space areas located along the fringes of the zone. Having the open space areas along the perimeter of the zone is advantageous to the parcels within Zone A6 due to the open space areas' positive results on the parcels, such as attracting natural flora and fauna, providing a more peaceful and relaxed lifestyle. A7 Parcels in this zone are made up of detached single-family homes. The open space areas are in close proximity to the single-family homes. These open spaced areas are connected with paseos that include concrete walkways and lights. These paseos provide for safe pedestrian travel within the zone and in to adjacent zone A9. A8 Parcels in this zone are made up of 4-plexes with open space areas located along the fringes of the zone that provide a barrier from the major arterial roadway. The strategic location of open space areas at the fringe create an aesthetically pleasing yet practical perimeter around the zone, which provides a more peaceful and relaxed lifestyle by attracting natural flora and fauna to Zone A8 parcels which, because of the close proximity to major arterial roadways, would not otherwise receive such benefit. Moreover, the higher-intensity property use receives a significant benefit from the natural vistas and landscaping provided by the open space areas. A9 Parcels in this zone are made up of duplexes. The open space areas are in close proximity to the duplexes and are connected by paseos. The paseos are improved with concrete walkways and lights. These paseos provide for safe pedestrian travel within the zone and in to adjacent zone A7, and promote social interaction. All parcels, developed and undeveloped, receive special benefits from the improvements because of the increased desirability of a parcel that is located in an area with landscaping, and open space areas. Public agency parcels within the district will not be used for residential occupancies or commercial/industrial workplaces, and therefore, do not receive special benefit and will not be assessed. The assessments proposed to be levied on each property do not exceed the reasonable cost of proportional special benefit conferred on each property from the funded improvements. FISCAL YEAR 2011-2012 PROPOSED LANDSCAPE MAINTENANCE DISTRICT NO. 4 ASSESSMENT FORMULA For the Fiscal Year 2011-2012, in compliance with Proposition 218, the City Council is proposing a change to the existing District's assessment rates and will submit the District's benefit analysis methodology and assessment rates to the property owners to vote in support of or in opposition. If the voter's support the proposed benefit methodology and assessment rates, the District will assess the parcels as detailed in the proposed "FY 2011-2012 Assessment Summary and Comparison " chart at the end of the report. The assessment methodology and assessment rates proposed for Fiscal Year 2011-2012 determined that all parcels receive special benefit for the landscape maintenance. In order to continue to provide the current level of maintenance services, budget is proposed to be maintain at its current level for the Fiscal Year 2011-2012. Therefore, the assessment rates for the Fiscal Year 2011-2012 are not proposed to be increased, March fl ,2011 2011 Landscape Maintenance District No, 4 EXISTING LANDSCAPE MAINTENANCE DISTRICT NO. 4 ASSESSMENT FORMULA The Maintenance District No. 4 was established in 1975 prior to Proposition 218 requirements, and the assessment for all properties is based on dwelling units. Each single family residential parcel, condominium complex, apartment, duplex, multi-family residential, and other developed land, is assessed per dwelling unit. The land-use classification for each parcel is based on the 2011-2012 Los Angeles County Auditor/Controller's Assessment Roll. ZONE CLASSIFICATIONS Zone classification depends on the type of dwelling unit and benefit received from the landscaped areas. The land use classification of each parcel is been based on the 2011-2012 Los Angeles County Auditor/Controller's Assessment Roll. The zone classifications are described in the proposed "FY 2011-2012 Assessment Summary and Comparison "chart at the end of the report. March IL 2W I Landscape Maintenance District No. 4 FY 2011-2012 PROPOSED PROPOSITION 218 ASSESSMENT SUMMARY The specific percent budget allocations, which were previously established for each zone, will not be increased in Fiscal Year 2011-2012. To calculate the Assessment Rates, the budget for each zone is divided by the total number of assessment units in the zone. The following table summarizes the different assessment rates for the different zone classifications and compares the proposed assessment with the last year's assessment. ASSESSMENT SUMMARY AND COMPARISON t Zone % of Budget Pa rce l Count Asmt Units FY 10-11 Assessment Rates FY 11-12 Proposed Assessment Rates (0% ' Increase) Total Assessment _ Al 2% 30 416 $ 49.16 5 49.16 $ 20,450.56 A2 2% 219 3'19 $ 77.89 5 77.89 $ 24,846.91 A3 13% . 326 2,843 $ 49.33 , $ 49.33 $ 140,245.19 A4 11% 500 500 $ 232.48 $ 232.48 $ 116,240.00 A5 4% 157 157 $ 260.98 $ 260.98 40,973.86 , A6 7% 246 246 $ 289.99 $ 289.99 . $ 71,337.54 . A7 52% 1,550 1,550 $ 348 02 $ 348.02 $ 539,431.00 A8 4% 118 118 $ 386.66 $ 386.66 $ 45,625.88 A9 4% 88 , 88 $ 464.00 $ 464.00 $ 40,832.00 100% 3,234 6,237 $1,039,982.94 BENEFIT ZONE LEGEND Al Commercial Property A2 Condos (Triangle Area, East of Azusa Ave. and north of Woodgrove Park) A3 Condos Minimum Maintenance Benefit A4 Condos Medium Maintenance Benefit A5 Single Family Triangle Area (Special Area, West of Azusa Ave and north Arnar Rd.) A6 Single Family Medium Maintenance Benefit A7 Single Family Maximum Maintenance Benefit AS 4-plex Minimum Maintenance Benefit A9 Duplex Minimum Maintenance Benefit March 11,2011 Landscape Maintenance District No. 4 PART E PROPERTY OWNERS LIST The list with the names and addresses of each property owner of each lot or parcel within the District Boundaries as shown on the last equalized Property Tax Roll of the Assessor of the County of Los Angeles, which by reference is hereby made part of this report. This list is keyed to the Assessor's Parcel Numbers as shown on the Assessment Roll on file in the Office of the Clerk of the City of West Covina. PART F ASSESSMENT DIAGRAM The boundaries of the District are within the boundaries of the City of West Covina. A diagram showing the exterior boundaries of the District, boundaries of any zone within the Assessment District and the lines and dimension of each lot or parcel of land within the district is on file in the Office of the City Engineer and incorporated herein by reference. The lines and dimensions of each lot or parcel within the Assessment District are those lines and dimensions shown on the maps of the Assessor of the County of Los Angeles and are, by reference, made part of this report. 13 March 11,2011 Landscape Maintenance District No. 4 ENGINEER'S REPORT CITY OF WEST COVINA LANDSCAPE MAINTENANCE DISTRICT NO. The undersigned respectfully submits the enclosed report directed by the City Council. The undersigned certifies that he or she is a professional Engineer, registered in the State of California. Dated: Shannon A. Yauchzee, P.E. Public Works Director/City Engineer I HEREBY CERTIFY that the enclosed Engineer's Report, together with the Assessment Roll and Assessment Diagram thereto attached was filed in the Office of the City Clerk on the day of ,2011. City Clerk, City of West Covina County of Los Angeles, California I HEREBY CERTIFY that the enclosed Engineer's Report, together with the Assessment Roll and Assessment Diagram thereto attached was approved and confirmed by the City Council of the City of West Covina, California, on the day of , 2011. City Clerk, City of West Covina County of Los Angeles, California I HEREBY CERTIFY that the enclosed Assessment Roll was filed with the County Auditor of the County of Los Angeles, on day of ,2011. City Clerk, City of West Covina County of Los Angeles, California ATTACHMENT "D" WEST COVINA MAINTENANCE DISTRICT NO. 4 10 YEAR FISCAL PROJECTION - RECOMMENDE PERCENT INCREASE 0.00% 0.000/0 0.000/0 0.000/0 0.000/0 0.000/0 0.000/0 0.00% 0.00% 0.000/0 0.00% FISCAL YEAR 10-11 11-12 12-13 13-14 14-15 15-16 16-17 17-18 18-19 19-20 20-21 ASSESS. INCOME $ 1,040,000 $ 1,040,000 $ 1,040,000 $ 1,040,000 $ 1,040,000 $ 1,040,000 $ 1,040,000 $ 1,040,000 $ 1,040,000 $1,040,000 $1,040,000 INTEREST $ 10,000 $ 16,500 $ 17,425 $ 17,705 $ 17,847 $ 17,847 $ 17,702 $ 17,408 - 16,962 , $ 16,361 $ 15,599 TRANSFER IN FROM DIST. 2 $ 9,000 $ 11,000 $ 12,000 $ 13,000 $ 14,000 $ 15,000 $ 16,000 $ 17,000 $ 18,000 $ 19,000 $ 19,380 PRIOR YEAR BALANCE $ 1,649,653 $ 1,645,339 $ 1,677,541 $ 1,701,351 $ 1,716,020 $ 1,721,307. $ 1,716,964 $ 1,702,740 $ 1,678,379 $ 1,643,789 $ 1,598,536 TOTAL FUNDING $ 2,708,653 $ 2,712,839 $ 2,746,966 $ 2,772,056 $ 2,787,867 $ 2,794,154 $ 2,790,666 $ 2,777,149 $ 2,753,341 $2,719,150 $2,673,515 MAINTENANCE COSTS $ 1,059,739 $ 1,031,723 $ 1,042,040 $ 1,052,461 $ 1,062,985 $ 1,073,615 $ 1,084,351 1,095,195 $ 1,106,147 $ 1,117,208 $ 1,128,380 TRANSFER OUT $ 3,575 $ 3,575 $ 3,575 $ 3,575 $ 3,575 $ 3,575 $ 3,575 $ 3,575 $ 3,405 $ 3,405 CAPITAL IMPROVEMENTS , $ $ $ $ TOTAL COST $ 1,063,314 $ 1,035,298 $ 1,045,615 $ 1,056,036 $ 1,066,560 $ 1,077,190 $ 1,087,926 $ 1,098,770 $ 1,109,552 $1,120,613 $1,128,380 ENDING BALANCE $ 1,645;439 $ 1,677,541:: $ 1,701,351 $ 1,716,020 1,721,307 $ 1,716,964 $ 1,702,740 $ 1,678,379 $ 1,643,789 $1,598,536 $1,545,135 CASH FLOW $ 529,870 $ 515,862 $ 521,020 $ 526,230 $ 531,493 $ 536,808 $ 542,176 $ 547,597 $ 553,073 $ 558,604 $ 564,190 OVER/UNDER $ 1,115,470 $ 1,161,680 $ 1,180,331 $ 1,189,790 $ 1,189,814 1,180,156 $ 1,160,565 $ 1,130,781 5 1,090,716 1,039,932 $ 980,945 Assessment of Highest Zone $ 464.00 $ 464.00 $ 464.00 464.00 $ 464.00 $ 464.00 $ 464.00 $ 464.00 i $ 464.00 464.00 $ 464.00 ASSUMPTIONS: A) Interest is 3% of the previous year ending balance B) 1% increase in maintenance cost each year due to inflation C) Previously approved maximum highest rate of $464, may not be increasedfurther without vote. Amount needed to assure that the district operates in a net positive cash flow position CASH FLOW: throughout the year to account for the fact that the revenues from the levy of the assessment is collected twice a year on the property tax bills OVER / UNDER: Amount over or under the desired Cash Flow amoL PRIOR YEAR BALANCE: Funds available at the end of the previous fiscal ye Admin. & Overhead 8% Personnel Services 20% lability Ins 0.37% LANDSCAPE MAINTENANCE DISTRICT NO. ATTACHMENT "E" Service Contrac 37% Supplies 2.53% Utilities 32% ATTACHMENT "F" RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF WEST COVINA, CALIFORNIA, CONFIRMING THE ENGINEER'S REPORT AND THE ASSESSMENT CONTAINED IN THAT REPORT FOR LANDSCAPE MAINTENANCE DISTRICT NO. 4; ORDERING LANDSCAPING MAINTENANCE, RENOVATION AND REPLACEMENT AND APPURTENANCES TO BE MAINTAINED FOR FISCAL YEAR BEGINNING JULY 1, 2011 WHEREAS, the City Council of the City of West Covina, California, did in Resolution No. 2011-14 of said City Council, pursuant to the provisions of the "Landscaping and Lighting Act of 1972," (Part 2 of Division 15, Section 22500 et seq. of the Streets and Highways Code of the State of California), and Proposition 218 (Article XIIID of the California Constitution) require a State certified engineer to make and file with the City Clerk a report in writing, presenting certain matters related to annual confirmation of West Covina Landscape Maintenance District No. 4 as contemplated under the provisions of said Act; and WHEREAS, such Engineer did make and file in the Office of the City Clerk of said City, a report in writing responsive to the requirements of the Act and Proposition 218; and WHEREAS, the City Council preliminarily approved such report, in conformity with the provisions of said Act; and did thereafter pass its Resolution of Intention No. 201-19 declaring its intention to order certain landscaping maintenance, renovation and replacement and appurtenances to be maintained for the fiscal year beginning July 1,2011; and WHEREAS, said City Council did fix and designate June 7, 2011, at the hour of 7:00 p.m. of said day as the time for hearing protests in reference to the proposed maintenance and assessment, at the Council Chambers in the City Hall, 1444 West Garvey Avenue South, in the City of West Covina, California; and WHEREAS, at the time and place above stated for hearing protests in reference to the proposed maintenance and assessment said City Council did proceed to hold such hearing; and WHEREAS, at the time and place above stated for hearing protest in reference to the proposed maintenance and assessment, written and oral protests and objections, if any, were filed and presented, which said protests and objectives, if any, were fully and regularly heard and considered by said City Council. NOW, THEREFORE, the City Council of the City of West Covina, California, does hereby resolve as follows: SECTION 1. That said City Council does hereby deny any and all protests and objections and does hereby approve, confirm and adopt the said report of said Engineer and does hereby approve and confirm the assessment proposed for said proposed maintenance as set forth and referred to in said report, which said report is now on file in the Office of the City Clerk of said City, open to inspection, hereby referred to and made a part hereof; and said City Council does hereby also confirm and adopt the respective instruments therein contained and designated therein as SPECIFICATIONS, DIAGRAM AND PLAN, Estimate of Costs and Assessments, all of which, on file as aforesaid, are hereby incorporated herein and made a part hereof. SECTION 2. That said City Council does hereby order the said contemplated maintenance to be made in accordance with the said PLAN AND SPECIFICATIONS, therefore, so adopted and approved, and does order and determine that the fiscal year referred to in said PLAN AND SPECIFICATIONS shall be and the same is hereby fixed and established as the period commencing on July 1,2011, and ending on June 30, 2012, both dates inclusive, as therein set forth: and said City Council does hereby levy the said proposed total assessment made to cover the costs and expenses of said improvement upon the respective several subdivisions of land in the assessment district and as fixed and determined by said report, as revised, and the proposed assessment, filed therewith, as aforesaid, in the Office of the City Clerk of said City, for the fiscal year beginning July 1,2011, and ending June 30, 2012, both dates inclusive. ZARESOLLITION - 20111M D4 PH Rest) 2011-2012.doc SECTION 3. That the City Council hereby orders and directs the City Treasurer to establish a special fund entitled "West Covina Landscape Maintenance District No. 4 Fund," and who shall place into said Fund all payments of assessments received from the County Tax Collector and payments shall be made out of said Special Fund only for the purposes provided for in said Part 2, Division 15, Streets and Highways Code of the State of California, as set forth in Chapter 5, Section 22655, of said Code. SECTION 4. That the City Clerk of the said City is hereby ordered to transmit, or cause to be transmitted to the County Auditor of Los Angeles County, State of California, as contemplated under the provisions of the "Landscaping and Lighting Act of 1972," the Diagram and Assessment upon which such levy is based, and the County Tax Collector of said County (who is also the City Tax Collector for said City) is hereby designated, required, empowered, authorized, instructed, ordered and directed to make collection of all assessments shown in said Assessment and to perform the acts and duties as are required by law of and to be performed by the officer, employee, or person so designated. SECTION 5. That the City Council finds that the levy and collection of these assessments is statutorily exempt from CEQA pursuant to Section 15273 of the Guidelines, in that the proceeds of the assessments are to be used for meeting operating expenses, purchasing supplies and meeting financial reserves needs and requirements. SECTION 6. That the City Clerk shall certify to the adoption of this resolution. APPROVED AND ADOPTED this 7th day of June 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 a regular meeting thereof held on the 7 th day of June 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 ZARESOLUTION - 2011W1D4 PH Reso 2011-2012.doc Cio, of West Covina Memorandum AGENDA TO: FROM: Andrew G. Pasmant, City Manager and City Council Shannon A. Yauchzee, Director/City Engineer Public Works Department ITEM NO. 18 DATE June 7, 2011 SUBJECT: WEST COVINA LANDSCAPE MAINTENANCE DISTRICT NO. PUBLIC HEARING RECOMMENDATION: is recommended that the City Council adopt the following resolution: RESOLUTION NO. - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF WEST COVINA, CALIFORNIA, CONFIRMING THE ENGINEER'S REPORT AND THE ASSESSMENT CONTAINED IN THAT REPORT FOR LANDSCAPE MAINTENANCE DISTRICT NO. 6; ORDERING LANDSCAPING MAINTENANCE, RENOVATION, AND REPLACEMENT AND APPURTENANCES TO BE MAINTAINED FOR FISCAL YEAR BEGINNING JULY 1, 2011 DISCUSSION: Maintenance District No. 6 was established in 1980 at the request of the owner of the development in lieu of forming a Homeowners' Association. Maintenance District No. 6 is generally located in the easterly end of the City known as South Hills (Attachment "A"). The funds collected by the district are used to maintain landscaping and irrigation in public open space areas within its boundaries. Maintenance District No. 6 contains 234 single-family dwellings and approximately 12 acres of landscaped and irrigated areas, in addition to approximately 65 acres of natural area. At the regular meeting of April 19, 2011, the City Council preliminarily approved the Engineer's Report (Attachment "C") prepared pursuant to the provisions of the "Landscaping and Lighting Act of 1972" and Proposition 218. On April 19, 2011, the City Council adopted Resolution No. 2011-20 declaring its intention to levy and collect the assessment and set June 7, 2011, as the date for the public hearing. The preliminary approval of the Engineer's Report by the City Council does not commit the City Council to adopt the proposed levy for the district. During or after the public hearing, the City Council may order the reduction of the rates and changes in expenses that are funded by the district. The City Council's action only becomes final when the assessments are confirmed by resolution upon the completion of the public hearing. The next step is the confirmation of the district and the approval of the assessment rates at the public hearing. At the public hearing, the City Council will consider all written and oral comments regarding the level of assessments, maintenance, and capital improvement work being done within the district. Upon the conclusion of the hearing, the City Council should adopt a resolution confirming the diagram and assessment levy either as proposed or as changed by City Council. ALTERNATIVES: The City Council may choose to either maintain the rates at their current levels or reduce the proposed assessments for the district. However, the City Council is precluded from setting a higher rate structure than presently proposed unless the renewal process should begin anew. The process consists of the approval of a new Engineer's Report and setting dates for the public meeting and hearing. Upon the conclusion of the public hearing, the City Council should adopt a resolution confirming the diagram and assessment levy either as originally proposed or as changed by the City Council. Z:MENDA - 2011 MD6 PubHearing 2011-12.doc Andrew G. Pasmant, City Manager and City Council Page 2 — June 7, 2011 Attached is a series of "10-Year Fiscal Projections" for Maintenance District No. 6. The 10-year projection is shown for planning purposes only and does not commit a future City Council to any such action. Every year this assessment is evaluated and acted on independent of past projections. 1. Staff recommends maintaining the assessment rates at their current level. The attached "10-Year Fiscal Projection" shows rates being maintained at their current level and a depletion of the reserves over the ten-years (Attachment "D"). 2. To reduce the assessment rates, the district's reserve will deplete at faster pace requiring to City's General Fund to subsidize the district. FISCAL IMPACT: The Fiscal Year 2011-2012 Engineer's Report for Maintenance District No. 6 recommends that the assessment rates be maintained at their current levels. The rate in Maintenance District No. 6 is based on a special uniform benefit to the property owners and is recommended to remain at its current level of $650.00 per lot annually ($54.16 per month). The projected income from the recommended rates is $156,650. The proposed Operating Budget for the district is $161,471. This is an increase of 0.29% when compared to the approved/amended budget of $161,003 for Fiscal Year 2010-2011. The proposed Operating Budget funds only the regular landscape maintenance. Ongoing improvements such as irrigation system improvements, enhancement to existing landscaping, tree trimming, and other extras are being eliminated to maintain the operating budget within projected revenues from the capped assessment rates. In addition, there are no new Capital Improvement Projects proposed in Fiscal Year 2011-2012. There are no legal requirements or formal guidelines for the amount of reserves in an assessment district, however at least 50% is required to cover cash flow. A reserve between 100% and 200% is recommended by staff to cover cash flow, future capital projects, emergencies, and as a benefit it also provides interest income. Piepareti-by: Miguel Hernandez Civil Engineering Associate Reviewed/Approved by: ii Finance Attachments: "A" - MD6 Map "B" - 15 Year Rate History "C" - MD6 Engineers Report "0" - MD6 10 Year Fiscal Projections - Chart "F" - Resolution Th- Reviewed/Approved by: Shannon A. Yauchzee Director/City Engineer ATTACHMENT "A" CITY OF WEST COVINA MAINTENANCE DISTRICT NO. 6 ATTACHMENT "B" MAINTENANCE DISTRICTS NO. 6 15-YEAR RATE HISTORY Fiscal Year Annual Assessment Per Lot 2011-2012 Proposed $ 650.00 2010-2011 $ 650.00 2009-2010 $ 617.41 2008-2009 $ 588.01 2007-08 $ 520.36 2006-07 $ 460.49 2005-06 $ 407.52 2004-05 $ 360.63 2003-04 $ 319.15 2002-03 $ 282.43 2001-02 $ 282.43 2000-01 $ 282.43 1999-2000 $ 282.83 1998-99 $ 282.43 1997-98 $ 282.43 1996-97 $ 282.43 March 11,2011 Landscape Maintenance District No. 6 ATTACHMENT "C" ENGINEER'S REPORT FISCAL YEAR 2011-2012 CITY OF WEST COVINA LANDSCAPE MAINTENANCE DISTRICT NO. 6 March 11.2011 Landscape Maintenance District No. 6 TABLE OF CONTENTS Report I Part A - Plans and Specifications t B - Estimate of Costs Part C - Assessment Rolls Part D - Method of Apportionment .. Summary of Assessments Part E - Property Owners List Part F - Assessment Diagram March 11,201] Landscape Maintenance District No. 6 CITY OF WEST COVINA FISCAL YEAR 2011-2012 ENGINEER'S REPORT PREPARED PURSUANT TO THE PROVISIONS OF THE LANDSCAPING AND LIGHTING ACT OF 1972 SECTION 22500 THROUGH 22679 OF THE CALIFORNIA STREETS AND HIGHWAYS CODE Pursuant to Part 2 of Division 15 of the Streets and Highways Code of the State of California, and in accordance with the Resolution of Intention adopted by the City Council of the City of West Covina, State of California, in connection with proceedings for: CITY OF WEST COVINA LANDSCAPING MAINTENANCE DISTRICT NO. Hereinafter referred to as the "Assessment District" or "District," I, Shannon A. Yauchzee, P.E., Public Works Director/City Engineer of the City of West Covina, submit herewith the "Report" consisting of six parts as follows: PART A PLANS AND SPECIFICATIONS Plans and specifications for the improvements are as set forth on the lists thereof, attached hereto, and are on file in the Office of the City Engineer and incorporated herein by reference. PART B ESTIMATE OF COST An estimate of the costs of the proposed improvements, including incidental cost and expenses in connection therewith, is as set forth on the lists thereof, attached hereto, and are on file in the Office of the City Clerk and incorporated herein by reference. PART C ASSESSMENT ROLLS An assessment of the estimate cost of the improvements on each benefited lot or parcel of land within the Assessment District. PART D METHOD OF APPORTIONMENT The method of apportionment of assessments, indicating the proposed assessment of the net amount of the costs and expenses of the improvements to be assessed upon the several lots and parcels of land within the Assessment District, in proportion to the estimated benefits to be received by such lots and parcels. The Assessment Roll is filed in the Office of the City Clerk and by reference is made a part hereof. PART E PROPERTY OWNER LIST A list of names and addresses of the owners of real property within the Assessment District as shown on the last equalized roll of the Assessor of the County of Los Angeles. The list is keyed to the records of the Assessor of the County of Los Angeles, which are incorporated herein by reference. March 11, 2011 Landscape Maintenance District No. 6 PART F ASSESSMENT DISTRICT DIAGRAM The diagram of the Assessment District boundaries showing the exterior boundaries of the Assessment District, the boundaries of any zones within the Assessment District and the lines and dimensions of each lot or parcel of land within the Assessment District is on file in the Office of the City Engineer and incorporated herein by reference. The lines and dimensions of each lot or parcel within the Assessment District are those lines and dimensions shown on the maps of the Assessor of the County of Los Angeles for fiscal year to which this report applies. The Assessor's maps and records are incorporated by reference herein and made part of this report. March 11,20t1 Landscape Maintenance District No. 6 PART A PLANS AND SPECIFICATIONS The facilities, which have been constructed within the City of West Covina, and those which may be subsequently constructed, will be serviced and maintained as generally described as follows: DESCRIPTION OF IMPROVEMENTS FOR THE CITY OF WEST COVINA LANDSCAPE MAINTENANCE DISTRICT NO. The existing facilities to be maintained and serviced include public open space, manufactured slopes, and appurtenant facilities. There are approximately 12 acres of landscaped and irrigated area and 65 acres of natural open space within the District. The District will fund the costs in connection with the district maintenance and servicing including, but not limited to, personnel, electrical energy, water, materials, contracting services, and other expenses necessary for the satisfactory operation of these facilities. Reference is made to Part "D" of this report for a discussion of the Zones of Benefit and the facilities associated with them, which are serviced and maintained. The facilities are described as follows: Landscaping and Appurtenant Facilities Facilities include but are not limited to trees, irrigation system, hardscape, fixtures, sidewalk maintenance resulting from landscape growth and appurtenant facilities, in open spaces and dedicated easements within the boundaries of said Assessment District. Maintenance means the furnishing of services and materials for the ordinary and usual operation, maintenance and servicing of the landscaping, and appurtenant facilities, including repair, removal or replacement of all or part of any of the landscaping or appurtenant facilities; providing for the life, growth, health, and beauty of the landscaping, including cultivation, irrigation, trimming, spraying, fertilizing, and treating for disease or injury; the removal of trimmings, rubbish, debris and other solid waste; and the cleaning. Servicing means the furnishing of water for the irrigation of landscaping and the maintenance or operation of landscaping or appurtenant facilities. The plans and specifications for the improvements are on file in the Office of the City Engineer and are by reference herein made a part of this report. March 11, 2011 Landscape Maintenance District No. 6 PART B ESTIMATE OF COST The City's budget for the operation and service costs, shown below, detail the estimated costs and fund balances for Fiscal Year 2011-2012 as available at the time of preparation of this report. The 1972 Act provides that the total cost can be recovered in the assessment spread including incidental expenses. The latter can include engineering fees, legal fees, printing, mailing, postage, publishing, and all other related costs identified with the district proceedings. EXPENDITURES Estimated expenditures for maintenance and operation for Fiscal Year 2011-2012 are as follows: DIRECT MAINTENANCE A. Personnel Services $ 39,819 Sub-total $ 39,819 Material and Services 1. Maintenance Contracts 2. Utilities (electricity & water) 3. Property and Liability Insurance 4. Administration and Overhead Sub-total Equipment Outlay TOTAL ENGINEERING AND INCIDENTALS A. Personnel Services TOTAL FUND TRANSFER $ 62,700 $ 41,900 $ 811 $ 12,145 $ 117,556 0 $ 157,375 4,096 TOTAL $ 3,575 IV CAPITAL IMPROVEMENT TOTAL 0 TOTAL OPERATING AND CAPITAL BUDGET $ 165,046 CONTINGENCY AND RESERVES A. Cash Flow Reserves $ 80,736 B. Contingency $ 53,084 TOTAL CONTINGENCY AND RESERVES $ 133,820 TOTAL DISTRICT EXPENDITURES $ 298,866 REVENUES Projected revenues available to the District for Fiscal Year 2011-2012 are as follows: Assessment Income $156,651 II. Interest $ TOTAL PROJECTED REVENUE $ 156,651 FUND BALANCE (Prior fiscal year) $ 142,215 TOTAL FUNDS AVAILABLE 5 298,866 The 1972 Act requires that a special fund be set-up for the revenue and expenditures of the district. Funds raised by assessment shall be used only for the purpose as stated herein. A contribution to the district by the City may be made to reduce assessments, as the City Council deems appropriate. Any balance or deficit remaining on July 1 st must be carried over to the next fiscal year. March 11.2011 Landscape Maintenance District No. 6 PART C ASSESSMENT ROLL The proposed assessment, commencing with Fiscal Year 2011-2012, and the amount of assessment apportioned to each lot or parcel, as shown on the latest roll at the Assessor's Office, are contained in the Assessment Roll on file in the Office of the City Clerk of the City of West Covina, which is incorporated herein by reference. The description of each lot or parcel is part of the records of the Assessor of the County of Los Angeles and these records are, by reference, made part of this report. PART D METHOD OF APPORTIONMENT OF ASSESSMENT GENERAL Part 2 of Division 15 of the Streets and Highways Code, the Landscaping and Lighting Act of 1972, permits the establishment of assessment district by cities for the purpose of providing certain public improvements which include the construction, maintenance and servicing of street lights, traffic signals, landscaping, and park and recreational facilities. Section 22573, Landscaping and Lighting Act of 1972 requires that maintenance assessments be levied according to benefit rather than according to assessed value. This section states: "The net amount to be assessed upon lands within an assessment district may be apportioned by any formula or method which fairly distributes the net amount among all assessable lots or parcels in proportion to the estimated benefits to be received by each such lot or parcel from the improvements." Because assessments are levied on the basis of benefit, they are not a tax, and, therefore, are not governed by Article XIIIA of the California Constitution. The Act permits the designation of zones of benefits within any individual assessment district if "by reason of variation in the nature, location, and extent of the improvements, the various areas will receive different degrees of benefit from the improvements" (Section 22574). Thus, the 1972 Act requires the levy of a true "assessment" rather than a "special tax." The Act also permits certain parcels to be exempt from assessment. Excepted from these assessments are areas of all publicly owned property such as: public streets, public avenues, public lanes, public roads, public drives, public courts, public alleys, all public easements, right- of-ways, all public parks, public greenbelts and parkways, and all public property being used for public purposes. BENEFIT ANALYSIS All parcels in the City of West Covina Landscape Maintenance District No. 6 derive benefit from the open space maintenance. The intent of this report is to establish a methodology that fairly distributes the cost of the system in relation to the benefit received. The assessment ratio for all properties is based on dwelling units. Each single family residential parcel, condominium complex, apartment, duplex, triplex, mobile home park, and other developed land is assessed per dwelling unit. This pro-ration accounts for an adjustment for street right-of-ways and public easements. March 11,2011 Landscape Maintenance District No. 6 LANDSCAPING MAINTENANCE Trees, landscaping, hardscaping and appurtenant facilities, if well maintained, provide beautification, shade, and enhancement of the desirability of the surroundings, and therefore increase property value. Property values in a community are increased when open space areas are improved, safe, clean, and maintained. Facilities that are unsafe or destroyed by the elements or vandalism decrease surrounding property values. Clean and safe open space areas increase public safety, help reduce crime and enhance the overall quality of life and desirability of an area. Conversely, property values decrease when open space areas are in disrepair, unsafe, and unclean. The United States Department of the Interior, National Park Services, in a publication of June 1984, concluded that, "An investment in parks and recreation helps reduce pollution and noise, makes communities more livable, and increases property value." Additionally, the National Recreation and Park Association, in June 1985, stated, "The recreation value is realized as a rise in the value of land and other property in or near the recreation area, and is of public interest to the taxpayers, who have a stake in a maximum of total assessed value." All properties in the District benefit from the maintenance and servicing of these facilities. Per the 2011-2012 Los County Auditor/Controller's Assessment Roll, there are 253 parcels within the District equaling 241 dwelling units. Therefore, the assessment rate for the District is proposed to be increased by 5.3% and is calculated by dividing $156,650 by 241 dwelling units for an assessment rate of $650.00 per dwelling unit. ASSESSMENT SUMMARY The following table summarizes the assessment rates and compares the proposed assessment with last year's assessment. To calculate the assessment rate, the assessment income is divided by the total number of dwelling units in the District. This is shown more clearly in the following table. ASSESSMENT SUMMARY 1 ASSESSMENT YEAR PARCELS DWELLING UNITS (DU) 2011-2012 INCOME 2011-2012 RATE 2010-2011 RATE 2011-2012 253 2-11 $156,650 $650.00/DU $650.00/DU PART E PROPERTY OWNERS LIST The list with the names and addresses of each property owner of each lot or parcel within the District Boundaries as shown on the last equalized Property Tax Roll of the Assessor of the County of Los Angeles, which by reference is hereby made part of this report. This list is keyed to the Assessor's Parcel Numbers as shown on the Assessment Roll on file in the Office of the City Clerk of the City of West Covina. March 1 1, 201 1 Landscape Maintenance District No. 6 PART F ASSESSMENT DIAGRAM The boundaries of the District are within the boundaries of the City of West Covina. A diagram showing the exterior boundaries of the District, boundaries of any zone within the Assessment District and the lines and dimension of each lot or parcel of land within the District is on file in the Office of the City Engineer and incorporated herein by reference. The lines and dimensions of each lot or parcel within the Assessment District are those lines and dimensions shown on the maps of the Assessor of the County of Los Angeles and are, by reference, made part of this report. March 11, 2011 Landscape Maintenance District No. 6 ENGINEER'S REPORT CITY OF WEST COVINA LANDSCAPE MAINTENANCE DISTRICT NO. 6 The undersigned respectfully submits the enclosed report directed by the City Council. The undersigned certifies that he or she is a professional Engineer, registered in the State of California. Dated: Shannon A. Yauchzee, P. E. Public Works Director/City Engineer I HEREBY CERTIFY that the enclosed Engineer's Report, together with the Assessment Roll and Assessment Diagram thereto attached, was filed in the Office of the City Clerk on the day of ,2011. City Clerk, City of West Covina County of Los Angeles, California I HEREBY CERTIFY that the enclosed Engineer's Report, together with the Assessment Roll and Assessment Diagram thereto attached, was approved and confirmed by the City Council of the City of West Covina, California, on the day of , 2011. City Clerk, City of West Covina County of Los Angeles, California I HEREBY CERTIFY that the enclosed Assessment Roll was filed with the County Auditor of the County of Los Angeles, on day of , 2011. City Clerk, City of West Covina County of Los Angeles, California 8 ATTACHMENT "D" WEST COVINA MAINTENANCE DISTRICT NO. 6 10 YEAR FISCAL PROJECTION - RECOMMENDED PERCENT INCREASE 5.28% 0.000/o 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% FISCAL YEAR 10-11 11-12 12-13 13-14 14-15 15-16 16-17 16-18 17-18 18-19 ASSESS. INCOME $ 156,651 $ 156,651 $ 156,651 * 156,651 156,651 $ 156,651 $ 156,651 * 156,651 $ 156,651 $ 156,651 INTEREST $ - $ 2,189 $ 1,996 $ 1,804 S 1,534 $ 1,206 $ 819 $ 370 $ $ PRIOR YEAR BALANCE S 161,404 $ 153,476 $ 147,270 $ 140,872 S 132,666 $ 122,560 $ 110,478 $ 96,346 S 80,084 $ 61,756 TOTAL FUNDING $ 318,055 $ 312,316 $ 305,918 $ 299,327 $ 290,851 $ 280,417 $ 267,948 $ 253,367 $ 236,735 $ 218,407 MAINTENANCE $:::: 161,004 $ 161,471 $ 161,471 163,086 $ 164,717 $ 166,364 $ 168,027 $ 169,708 $ 171,405 s 173,119 TRANSFER OUT $ 3,575 $ 3,575 $ 3,575 $ 3,575 $ 3,575 $ 3,575 $ 3,575 S 3,575 $ 3,575 $ 3,575 CAPITAL IMPROVEMENTS $ $ $ $ $ $ $ $ $ TOTAL COSTS $ 164,579 $ 165,046 $ 165,046 $ 166,661 $ 168,292 $ 169,939 $ 171,602 $ 173,283 $ 174,980 $ 176,694 BALANCE $ 153,476 147,270 $ 140,872 $ 132,666 $ 122,560 $ 110,478 $ 96,346 $ 80,084 $ 61,756 $ 41,713 REQUIRED CASH FLOW $ 80,502 $ 80,736 $ 80,736 $ 81,543 $ 82,358 $ 83,182 $ 84,014 $ 84,854 $ 85,702 $ 86,559 OVER/UNDER $ 72,974 $ 66,535 $ 60,136 51,123 S 40,201 $ 27,296 $ 12,332 (4,770) $ (23,947) $ (44,846) ASSESSMENT RATE $ 650.00 $ 650.00 $ 650.00 $ 650.00 $ 650.00 650.00 $ 650.00 $ 650.00 $ 650.00 $ 650.00 ASSUMPTIONS: A) Interest is 3.0% of the previous year ending balance B) Previously approved maximum rate of $650, may not be increased further without vote C) Reduce maintenance cost by $5,000 in FY 2011-2012 and FY 2012-2013 DEFINITIONS: Amount needed to assure that the District operates in a net positive cash flow position CASH FLOW: throughout the year to account for the fact that the revenues from the levy of the assessment collected twice a year on the property tax bills. OVER/UNDER; Amount over or under the desired Cash Flow amount. PRIOR YEAR BALANCE: Funds available at the end of the previous fiscal year. ANDSCAPE MAINTENANCE DISTRICT NO.6 ATTACHMENT "E" Admin. & Overhead 8% Personnel Services 27% Utilities 26% Service Contracts 39% ATTACHMENT "F" RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF WEST COVINA, CALIFORNIA, CONFIRMING THE ENGINEER'S REPORT AND THE ASSESSMENT CONTAINED IN THAT REPORT FOR LANDSCAPE MAINTENANCE DISTRICT NO. 6; ORDERING LANDSCAPING MAINTENANCE, RENOVATION, AND REPLACEMENT AND APPURTENANCES TO BE MAINTAINED FOR FISCAL YEAR BEGINNING JULY 1, 2011 WHEREAS, the City Council of the City of West Covina, California, did in Resolution No. 2011-15 of said City Council, pursuant to the provisions of the "Landscaping and Lighting Act of 1972," (Part 2 of Division 15, Section 22500 et seq. of the Streets and Highways Code of the State of California), and Proposition 218 (Article XIIID of the California Constitution) require a State certified engineer to make and file with the City Clerk a report in writing, presenting certain matters related to annual confirmation of West Covina Landscape Maintenance District No. 6 as contemplated under the provisions of said Act; and WHEREAS, such Engineer did make and file in the Office of the City Clerk of said City, a report in writing responsive to the requirements of the Act and Proposition 218; and WHEREAS, the City Council preliminarily approved such report, in conformity with the provisions of said Act; and did thereafter pass its Resolution of Intention No. 2011-20 declaring its intention to order certain landscaping maintenance, renovation and replacement and appurtenances to be maintained for the Fiscal Year beginning July 1, 2011; and WHEREAS, said City Council did fix and designate June 7, 2011, at the hour of 7:00 p.m. of said day as the time for hearing protests in reference to the proposed maintenance and assessment, at the Council Chambers in the City Hall, 1444 West Garvey Avenue South, in the City of West Covina, California; and WHEREAS, at the time and place above stated for hearing protests in reference to the proposed maintenance and assessment said City Council did proceed to hold such hearing; and WHEREAS, at the time and place above stated for hearing protest in reference to the proposed maintenance and assessment, written and oral protests and objections, if any, were filed and presented, which said protests and objectives, if any, were fully and regularly heard and considered by said City Council. NOW, THEREFORE, the City Council of the City of West Covina, California, does hereby resolve as follows: SECTION 1. That said City Council does hereby deny any and all protests and objections and does hereby approve, confirm and adopt the said report of said Engineer and does hereby approve and confirm the assessment proposed for said proposed maintenance as set forth and referred to in said report, which said report is now on file in the Office of the City Clerk of said City, open to inspection, hereby referred to and made a part hereof; and said City Council does hereby also confirm and adopt the respective instruments therein contained and designated therein as SPECIFICATIONS, DIAGRAM AND PLAN, Estimate of Costs and Assessments, all of which, on file as aforesaid, are hereby incorporated herein and made a part hereof. SECTION 2. That said City Council does hereby order the said contemplated maintenance to be made in accordance with the said PLAN AND SPECIFICATIONS, therefore, so adopted and approved, and does order and determine that the fiscal year referred to in said PLAN AND SPECIFICATIONS shall be and the same is hereby fixed and established as the period commencing on July 1, 2011, and ending on June 30, 2012, both dates inclusive, as therein set forth; and said City Council does hereby levy the said proposed total assessment made to cover the costs and expenses of said improvement upon the respective several subdivisions of land in the assessment district and as fixed and determined by said report, as revised, and the proposed assessment, filed therewith, as aforesaid, in the Office of the City Clerk of said City, for the Fiscal Year beginning July 1, 2011, and ending June 30, 2012, both dates inclusive. ZARESOLUT1ON - 20111MD6 PH Reso 2011-2012.doc SECTION 3. That the City Council hereby orders and directs the City Treasurer to establish a special fund entitled "West Covina Landscape Maintenance District No. 6 Fund," and who shall place into said Fund all payments of assessments received from the County Tax Collector and payments shall be made out of said Special Fund only for the purposes provided for in said Part 2, Division 15, Streets and Highways Code of the State of California, as set forth in Chapter 5, Section 22655, of said Code. SECTION 4. That the City Clerk of the said City is hereby ordered to transmit, or cause to be transmitted to the County Auditor of Los Angeles County, State of California, as contemplated under the provisions of the "Landscaping and Lighting Act of 1972," the Diagram and Assessment upon which such levy is based, and the County Tax Collector of said County (who is also the City Tax Collector for said City) is hereby designated, required, empowered, authorized, instructed, ordered and directed to make collection of all assessments shown in said Assessment and to perform the acts and duties as are required by law of and to be performed by the officer, employee, or person so designated. SECTION 5. That the City Council finds that the levy and collection of these assessments is statutorily exempt from CEQA pursuant to Section 15273 of the Guidelines, in that the proceeds of the assessments are to be used for meeting operating expenses, purchasing supplies and meeting financial reserves needs and requirements. SECTION 6. That the City Clerk shall certify to the adoption of this resolution. APPROVED AND ADOPTED this 7th day of June 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 7th day of June 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 ZARESOLUTION - 2011 \MD6 PH Reso 2011-2012.doc City of West Covina Memorandum TO: Andrew G. Pasrnant, City Manager AGENDA and City Council ITEM NO. 19 DATE June 7, 2011 FROM: Shannon A. Yauchzee, Director/City Engineer Public Works Department SUBJECT: WEST COVINA LANDSCAPE MAINTENANCE DISTRICT NO. 7 PUBLIC HEARING 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, CALIFORNIA, CONFIRMING THE ENGINEER'S REPORT AND THE ASSESSMENT CONTAINED IN THAT REPORT FOR LANDSCAPE MAINTENANCE DISTRICT NO. 7; ORDERING LANDSCAPING MAINTENANCE, RENOVATION AND REPLACEMENT, AND APPURTENANCES TO BE MAINTAINED FOR FISCAL YEAR BEGINNING JULY 1,2011 DISCUSSION: Maintenance District No. 7 was established in 1980 at the request of the owner of the development in lieu of forming a Homeowners' Association. The district is generally located in the easterly end of the City (Attachment "A"). The funds collected by the district are used to maintain landscaping and irrigation in public open space areas within its boundaries. Currently, Maintenance District No. 7 contains 380 single residential parcels and approximately 13.75 acres of landscaped and irrigated areas in addition to 83 acres of natural area. It is only 55% developed. When completely developed, Maintenance District No. 7 will contain 25 acres of landscaped and irrigated areas and 105 acres of natural area. At the regular meeting of April 19, 2011, the City Council preliminarily approved the Engineer's Report (Attachment "C") prepared pursuant to the provisions of the "Landscaping and Lighting Act of 1972" and Proposition 218. On April 19, 2011, the City Council adopted Resolution No. 2011- 21 declaring its intention to levy and collect the assessment and set June 7,2011, as the date for the public hearing. The preliminary approval of the Engineer's Report by the City Council does not commit the City Council to adopt the proposed levy for the district. During or after the public hearing, the City Council may order the increase, remain status quo, or reduce the rates and changes in expenses that are funded by the district. The City Council's action only becomes final when the assessments are confirmed by resolution upon the completion of the public hearing. The next step is the confirmation of the district and the approval of the assessment rates at the public hearing. At the public hearing, the City Council will consider all written and oral connnents regarding the level of assessments, maintenance, and capital improvement work being done within the district. Upon the conclusion of the hearing, the City Council should adopt a resolution confirming the diagram and assessment levy either as proposed or as changed by City Council. ALTERNATIVES: The City Council may choose to either maintain the rates at their current levels or reduce the proposed assessments for the district. However, the City Council is precluded from setting a higher rate structure than presently proposed. If the City Council should desire to increase the assessment rates, the renewal process should begin anew. The process consists of the approval of a new Engineer's Report and setting dates for the public meeting and hearing. Upon the conclusion of the public hearing, the City Council should adopt a resolution confirming the diagram and assessment levy either as originally proposed or as changed by the City Council. Andrew G. Pasmant, City Manager and City Council Page 2 — June 7.2011 Attached is a series of "10-Year Fiscal Projections" for Maintenance District No. 7 (Attachments "D-I" and "D-2"). The projections show two different scenarios and the effects on the district. The 10-year projection is shown for planning purposes only and does not commit future City Council action. Every year this assessment is evaluated and acted on independent of past projections. Listed below are two 10-Year Fiscal Projections and the effects on the reserves. Listed below are two alternatives. Staff recommends a rate increase of 2% to stabilize the reserves and minimize the impact on the residents (Attachment "D-1"). Rates to remain at their current level (0% increase); reserve would be depleted by Fiscal Year 2015-2016 (Attachment "D-2"). This would result in the need to reduce services or subsidize the district with General Funds. FISCAL IMPACT: The Fiscal Year 2011-2012 Engineer's Report for Maintenance District No. 7 recommends that the assessment rates be increased by 2% from their current levels. The rates in Maintenance District No. 7 are based on special uniform benefit to the property owners. The recommended 2% rate increase equates to an increase from $428.72 to $437.29 per developed lot and from $128.62 to $131.19 per undeveloped lot. The projected amount to be raised from the recommended rates is $141,814. In addition, $1,605 is projected from interest income for total projected revenue of $143,419. The proposed Operating Budget for the district is $148,083. This is an increase of 0.69% when compared to the approved/amended budget of $147,063 for Fiscal Year 2010-2011. The proposed Operating Budget funds not only the regular landscape maintenance but is also able to fund ongoing improvements, such as irrigation system improvements and enhancement to existing landscaping, without depleting the reserves. In addition, there are no new Capital Improvement Projects proposed in Fiscal Year 2011-2012. Upon 100% completion of the developments within Maintenance District No. 7, there will be 381 improved residential lots. The district's open space area will increase to 25 acres of landscaped and irrigated area and 105 acres of natural area, for a total of 130 acres. The cost to maintain this area is estimated at $285,000. This estimated cost is based on the City's present average of $300 per acre per month for landscaped and irrigated areas and $125 per acre per month for natural areas. ,I ji Pie are /.y: Migue Hernandez Civil Engineering Associate . Reviewed/Approved by: ______ Finance Reviewed/Approved by Shannon A. Yauchzee Director/City Engineer Attachments: "A" - MD7 Map "B" - 15 Year Rate History "C" MD7 Engineers Report - MD7 10 Year Fiscal Projections "E" - Chart "F" - Resolution ZAAGENDA - 2N 11MD7 PubHearing 2011-2012.doc ATTACHMENT "A" i % / / SUNRISE : • I 1 I I ---------- -- - ..""...°4.11 I 40.\.- V , -— — i — 7i sDi0 I A _ 1_ _.— --\ 0L W—I R—Y 3D c,"C s0z K IY7n i1 ' 661° " 04' \ 1 / n I r-• 1--, % \ -1 r- n••••,f_ do 6s: 1 n / Ie.:0 I 0 ' \S,‘'0 I \ c4 I 1] HIQSME. O 'L 0 % GI ‘ i: .------j 0 -P -L‹ ...• " -0 z 4 • 1,), .....7.' '.. 1 i ..7.." 1 x. INsFIRI, , 04 .. I V t• ui en .• n 1 w I- \ z s.0 1.0 0 al cp 0 r4 77 *** ...- 1 t- ......---- —.-• 1 —. -- -- CY" A -- v ' ------- --- \ Si.° -. ----"'"..-- n , ...---"-----' n n ... 1 ..-------- -- 1 ............... n CITY OF WEST COVINA MAINTENANCE Di-STRICT Ni) ATTACHMENT "B" MAINTENANCE DISTRICTS NO. 15-YEAR RATE HISTORY Fiscal Year MD 7 Annual Assessment Per Lot Improved I Unimproved 2011-2012 Proposed $ 437.29 $ 131.19 2010-11 5 428.72 $ 128.62 2009-10 $ 389.74 $ 116.92 2008-09 $ 354.31 $ 106.29 2007-08 $ 322.10 $ 96.63 2006-07 $ 292.82 $ 87.85 2005-06 $ 266.20 $ 79.86 2004-05 $ 242.00 $ 72.60 2003-04 $ 220.00 5 66.00 2002-03 $ 200.00 $ 60.00 2001-02 $ 200.00 $ 60.00 2000-01 $ 200.00 $ 60.00 1999-2000 $ 200.00 $ 60.00 1998-99 $ 200.00 $ 60.00 1997-98 $ 200.00 $ 60.00 1996-97 $ 200.00 $ 60.00 ZAAGENDA - 201 IND7 Pubflearing 2011-2012.doc ATTACHMENT "C" ENGINEER'S REPORT FISCAL YEAR 2011-2012 CITY OF WEST COVINA LANDSCAPE MAINTENANCE DISTRICT NO. 7 March 11,2011 Landscape Maintenance District No. 7 TABLE OF CONTENTS Report Part A - Plans and Specifications rt B - Estimate of Costs Part C - Assessment Rolls Part D - Method of Apportionment Summary of Assessments Part E - Property Owners List Part F - Assessment Diagram .. March 11,2011 Landscape Maintenance District No. 7 CITY OF WEST COVINA FISCAL YEAR 2011-2012 ENGINEER'S REPORT PREPARED PURSUANT TO THE PROVISIONS OF THE LANDSCAPING AND LIGHTING ACT OF 1972 SECTION 22500 THROUGH 22679 OF THE CALIFORNIA STREETS AND HIGHWAYS CODE Pursuant to Part 2 of Division 15 of the Streets and Highways Code of the State of California, and in accordance with the Resolution of Intention adopted by the City Council of the City of West Covina, State of California, in connection with proceedings for: CITY OF WEST COVINA LANDSCAPING MAINTENANCE DISTRICT NO. 7 Hereinafter referred to as the "Assessment District" or "District," 1, Shannon A. Yauchzee, P. E., Public Works Director/City Engineer of the City of West Covina, submit herewith the "Report" consisting of six parts as follows: PART A PLANS AND SPECIFICATIONS Plans and specifications for the improvements are as set forth on the lists thereof, attached hereto, and are on file in the Office of the City Engineer and incorporated herein by reference. PART B ESTIMATE OF COST An estimate of the costs of the proposed improvements, including incidental costs and expenses in connection therewith, are set forth on the lists thereof, attached hereto, and are on file in the Office of the City Clerk and incorporated herein by reference. PART C ASSESSMENT ROLLS An assessment of the estimate cost of the improvements on each benefited lot or parcel of land within the Assessment District. PART D METHOD OF APPORTIONMENT The method of apportionment of assessments, indicating the proposed assessment of the net amount of the costs and expenses of the improvements to be assessed upon the several lots and parcels of land within the Assessment District, in proportion to the estimated benefits to be received by such lots and parcels. The Assessment Roll is filed in the Office of the City Clerk and by reference is made a part hereof. PART E PROPERTY OWNER LIST A list of names and addresses of the owners of real property within the Assessment District, as shown on the last equalized roll of the Assessor of the County of Los Angeles, The list is keyed to the records of the Assessor of the County of Los Angeles, which are incorporated herein by reference. 1 March 11,2011 Landscape Maintenance District No. 7 PART F ASSESSMENT DISTRICT DIAGRAM The diagram of the Assessment District boundaries showing the exterior boundaries of the Assessment District, the boundaries of any zones within the Assessment District and the lines and dimensions of each lot or parcel of land within the Assessment District is on file in the Office of the City Engineer and incorporated herein by reference. The lines and dimensions of each lot or parcel within the Assessment District are those lines and dimensions shown on the maps of the Assessor of the County of Los Angeles for fiscal year to which this report applies. The Assessor's maps and records are incorporated by reference herein and made part of this report. March 11,2011 Landscape Maintenance District No. 7 PART A PLANS AND SPECIFICATIONS The facilities, which have been constructed within the City of West Covina, and those which may be subsequently constructed, will be serviced and maintained as generally described as follows: DESCRIPTION OF IMPROVEMENTS FOR THE CITY OF WEST COVINA LANDSCAPE MAINTENANCE DISTRICT NO. 7 The existing facilities to be maintained and serviced include public open spaces and manufactured slopes and appurtenant facilities. There are approximately 13.75 acres of landscaped and irrigated area and 83 acres of natural open space within the District. The District will fund the costs in connection with the District maintenance and servicing including, but not limited to, personnel, electrical energy, water, materials, contracting services, and other expenses necessary for the satisfactory operation of these facilities. Reference is made to Part "D" of this report for a discussion of the Zones of Benefit and the facilities associated with them, which are serviced and maintained. The facilities are described as follows: Landscaping and Appurtenant Facilities Facilities include but are not limited to: trees, irrigation system, hardscape, fixtures, sidewalk maintenance resulting from landscape growth and appurtenant facilities, in public open space areas and dedicated easements within the boundaries of said Assessment District. Maintenance means the furnishing of services and materials for the ordinary and usual operation, maintenance and servicing of the landscaping and appurtenant facilities, including repair, removal or replacement of all or part of any of the landscaping or appurtenant facilities; providing for the life, growth, health, and beauty of the landscaping, including cultivation, irrigation, trimming, spraying, fertilizing and treating for disease or injury; the removal of trimmings, rubbish, debris and other solid waste; and the cleaning. Servicing means the furnishing of water for the irrigation of landscaping and the maintenance or operation of landscaping or appurtenant facilities. The plans and specifications for the improvements are on file in the Office of the City Engineer and are by reference herein made a part of this report. 3 March 11,2011 Landscape Maintenance District No. 7 PART B ESTIMATE OF COST The City's budget for the operation and services costs, shown below, detail the estimated costs and fund balances for Fiscal Year 2011-2012, as available at the time of preparation of this report. The 1972 Act provides that the total cost can be recovered in the assessment spread including incidental expenses. The latter can include engineering fees, legal fees, printing, mailing, postage, publishing, and all other related costs identified with the district proceedings. EXPENDITURES Estimated expenditures for maintenance and operation for Fiscal Year 2011-2012 are as follows: I. DIRECT MAINTENANCE A. Personnel Services Sub-total B. Material and Services 1. Maintenance Contracts 2. Utilities 3. Property and Liability Insurance 4. Administration and Overhead Sub-total C. Equipment Outlay Sub-total TOTAL II. ENGINEERING AND INCIDENTALS A. Personnel Services TOTAL III FUND TRANSFER TOTAL IV. CAPITAL IMPROVEMENT TOTAL TOTAL OPERATING AND CAPITAL BUDGET V. CONTINGENCY AND RESERVES A. Cash Flow Reserves B. Contingency $ 41,029, $ 41,029 $ 64,300 $ 25,800 $ 828 $ 12,031 $ 102,959 0 $ 143,988 $ 4,095 $ 3,575 $ 0 $151,658 $ 74,042 $ 151,588 TOTAL CONTINGENCY AND RESERVES $225,630 TOTAL DISTRICT EXPENDITURES $377,288 REVENUES Projected revenues available to the District for Fiscal Year 2011-2012 are as follows: I. Assessment Income Interest TOTAL PROJECTED REVENUE FUND BALANCE (Reserves from Prior Year) TOTAL FUNDS AVAILABLE $ 141,814 $ L605 $ 143,419 $ 233,869 $ 377,288 The 1972 Act requires that a special fund be set-up for the revenue and expenditures of the District. Funds raised by assessment shall be used only for the purpose as stated herein. A contribution to the District by the City may be made to reduce assessments, as the City Council deems appropriate. Any balance or deficit remaining on July l st must be carried over to the next fiscal year. 4 March 1,2011 Landscape Maintenance District No. 7 PART C ASSESSMENT ROLL The proposed assessment, commencing with for Fiscal Year 2011-2012, and amount of assessment apportioned to each lot or parcel, as shown on the latest roll at the Assessor's Office, are contained in the Assessment Roll on file in the Office of the City Clerk of the City of West Covina, which is incorporated herein by reference. The description of each lot or parcel is part of the records of the Assessor of the County of Los Angeles and these records are, by reference, made a part of this report. PART D METHOD OF APPORTIONMENT OF ASSESSMENT GENERAL Part 2 of Division 15 of the Streets and Highways Code, the Landscaping and Lighting Act of 1972, permits the establishment of assessment district by cities for the purpose of providing certain public improvements which include the construction, maintenance and servicing of street lights, traffic signals, landscaping, and park and recreational facilities. Section 22573, Landscaping and Lighting Act of 1972 requires that maintenance assessments be levied according to benefit rather than according to assessed value. This section states: "The net amount to be assessed upon lands within an assessment district may be apportioned by any formula or method which fairly distributes the net amount among all assessable lots or parcels in proportion to the estimated benefits to be received by each such lot or parcel from the improvements." Because assessments are levied on the basis of benefit, they are not a tax, and, therefore, are not governed by Article XIIIA of the California Constitution The Act permits the designation of zones of benefits within any individual assessment district if by reason of variation in the nature, location, and extent of the improvements, the various areas will receive different degrees of benefit from the improvements" (Section 22574). Thus, the 1972 Act requires the levy of a true "assessment" rather than a "special tax." The Act also permits certain parcels to be exempt from assessment. Excepted from these assessments are areas of all publicly owned property such as: public streets, public avenues, public lanes, public roads, public drives, public courts, public alleys, all public easements, right- of-ways, all public parks, public greenbelts and parkways, and all public property being used for public purposes. BENEFIT ANALYSIS All parcels in the City of West Covina Landscape Maintenance District No. 7 derive benefit from the open space maintenance. The intent of this report is to establish a methodology that fairly distributes the cost of the system in relation to the benefit received. The assessment ratio for all properties is based on dwelling units. Each single family residential parcel, condominium complex, apartment, duplex, triplex, mobile home park, and other developed land is assessed per dwelling unit. This pro-ration accounts for an adjustment for street right-of-ways and public easements. 5 March 11,2011 Landscape Maintenance District No. 7 LANDSCAPING MAINTENANCE Trees, landscaping, hardscaping, and appurtenant facilities, if well maintained, provide beautification, shade, and enhancement of the desirability of the surroundings, and therefore increase property value. Property values in a community are increased when open space areas are improved, safe, clean, and maintained. Facilities that are unsafe or destroyed by the elements or vandalism decrease surrounding property values. Clean and safe open space areas increase public safety, help reduce crime and enhance the overall quality of life and desirability of an area. Conversely, property values decrease when open space areas are in disrepair, unsafe, and unclean. The United States Department of the Interior, National Park Services, in a publication of June 1984, concluded that, "An investment in parks and recreation helps reduce pollution and noise, makes communities more livable, and increases property values." Additionally, the National Recreation and Park Association, in June 1985, stated, "The recreation value is realized as a rise in the value of land and other property in or near the recreation area, and is of public interest to the taxpayers, who have a stake in a maximum of total assessed value." ZONE CLASSIFICATIONS Zone classifications depends on whether a parcel is improved or unimproved, those properties that are improved receive the greater benefit from the service provided. Zone Cl - All unimproved parcels within the District. There are 81 unimproved parcels. Zone C2 - All improved parcels within the District. There are 300 improved parcels. The land-use classification for each parcel has been based on the 2011-2012 Los Angeles County Auditor/Controller's Assessment Roll. ASSESSMENT SUMMARY The following table summarizes the different assessment rates for the different zone classifications, and compares the proposed assessment with the last year's assessment. ASSESSMENT SUMMARY AND COMPARISON ZONE FISCAL YEAR 2011-2012 NET ASSESSMENT PARCELS FY 2011-2012 RATE FY 2009-2010 RATE Cl $10,626.39 81 $131.19/parcel $128.62/parcel C2 $131,187.00 300 $437.29/parcel $428.72/parcel Total $141,813.29 381 C I = Unimproved Lots C2 = Improved Lots PART E PROPERTY OWNERS LIST The list with the names and addresses of each property owner of each lot or parcel within the District Boundaries as shown on the last equalized Property Tax Roll of the Assessor of the County of Los Angeles, which by reference is hereby made part of this report. This list is keyed to the Assessor's Parcel Numbers as shown on the Assessment Roll on file in the Office of the Clerk of the City of West Covina. March 11,2011 Landscape Maintenance District No. 7 PART F ASSESSMENT DIAGRAM The boundaries of the District are within the boundaries of the City of West Covina. A diagram showing the exterior boundaries of the District, boundaries of any zone within the Assessment District and the lines and dimension of each lot or parcel of land within the District is on file in the Office of the City Engineer and incorporated herein by reference. The lines and dimensions of each lot or parcel within the Assessment District are those lines and dimensions shown on the maps of the Assessor of the County of Los Angeles and are, by reference, made part of this report. ENGINEER'S REPORT CITY OF WEST COVINA LANDSCAPE MAINTENANCE DISTRICT NO. 7 The undersigned respectfully submits the enclosed report directed by the City Council. The undersigned certifies that he or she is a professional Engineer, registered in the State of California. Dated: Shannon A. Yauchzee, P. E. Public Works Director/City Engineer I HEREBY CERTIFY that the enclosed Engineer's Report, together with the Assessment Roll and Assessment Diagram thereto attached, was filed in the Office of the City Clerk on the day of ,201l. City Clerk, City of West Covina County of Los Angeles, California I HEREBY CERTIFY that the enclosed Engineer's Report, together with the Assessment Roll and Assessment Diagram thereto attached, was approved and confirmed by the City Council of the City of West Covina, California, on the day of , 2011. City Clerk, City of West Covina County of Los Angeles, California I HEREBY CERTIFY that the enclosed Assessment Roll was filed with the County Auditor of the County of Los Angeles, on day of , 2011. City Clerk, City of West Covina County of Los Angeles, California 8 ATTACHMENT "D-1" WEST COVINA MAINTENANCE DISTRICT NO. 10 YEAR FISCAL PROJECTION - RECOMMENDE PERCENT INCREASE 10.000/0 2.000/0 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% FISCAL YEAR 10-11 11-12 12-13 13-14 14-15 15-16 16-17 17-18 18-19 19-20 ASSESS. INCOME $ 139,033 $ 141,814 $ 144,650 $ 147,543 $ 150,494 $ 153,504 $156,574 $159,705 $ 162,900 $ 166,158 INTEREST $ 1,500 $ 1,605 $ 1,516 1,439 $ 1,375 $ 1,324 $ 1,288 $ 1,267 $ 1,261 $ 1,272 PRIOR YEAR BALANCE $ 243,583 $ 233,869 $ 225,630 $ 218,658 $ 213,005 $ 208,729 $ 205,886 $ 204,537 $ 204,741 $ 206,562 TOTAL FUNDING $ 384,116 $ 377,268 $ 371,796 $ 367,639 $ 364,874 $ 363,557 $363,748 $365,509 $ 368,902 $ 373,991 MAINTENANCE $ 146,672 $ 148,083 $ 149,564 $ 151,059 $ 152,570 $ 154,096 $ 155,637 $ 157,193 $ 158,765 $ 160,353 TRANSFER OUT $ 3,575 $ 3,575 $ 3,575 $ 3,575 $ 3,575 $ 3,575 $ 3,575 $ 3,575 $ 3,575 $ 3,576 TOTAL COST $ 150,247 $ 151,658 $ 153,139 $ 154,634 $ 156,145 $ 157,671 $159,212 $160,768 $ 162,340 $ 163,929 BALANCE $ 233,869 $ 225,630 $ 218,658 $ 213,005 $ 208,729 $ 205,886 $204,537 $204,741 $ 206,562 $ 210,063 CASH FLOW .5 73,336 $ 74,042 $ 74,782 $ 75,530 $ 76,285 $ 77,048 $ 77,818 $ 78,597 $ 79,383 $ 80,176 OVER/UNDER $ 160,533 5 151,589 $ 143,876 $ 137,475 $ 132444 $ 128,838 $ 126,718 $ 126,145 $ 127,180 129,886 DEVELOPED LOT 5 428.72 $ 437.29 $ 446.04 $ 454.96 $ 464.06 $ 473.34 $ 482.81 $ 492.46 $ 502.31 $ 512.36 UNDEVELOPED LOT S 128.62 $ 131.19 $ 133.81 $ 136.49 $ 139.22 $ 142.00 $ 144.84 $ 147.74 $ 150.69 $ 153.71 A). Interest is 3% of the previous year ending balance B). 1% increase in Maintenance cost due to inflation C). Remaining landscaped open space areas turned over to City in future years. D). There are 300 developed lot and 81 undeveloped lots. F). Previously approved maximum highest rate, $644 EFINITION: Amount needed to assure that the district operates in a net positive cash flow position CASH FLOW: throughout the year to account for the fact that the revenues from the levy of the assessment is collected twice a year on the property tax bills. OVER / UNDER: Amount over or under the desired Cash Flow amount. PRIOR YEAR BALANCE: Funds available at the end of the previous fiscal year. ATTACHMENT "D-2" WEST COVINA MAINTENANCE DISTRICT NO. 10 YEAR FISCAL PROJECTIO PERCENT INCREASE 10.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% FISCAL YEAR 10-11 11-12 12-13 13-14 14-15 15-16 16-17 17-18 18-19 19-20 ASSESS. INCOME $ 139,033 $ 139,033 $ 139,033 $ 139,033 $ 139,033 $ 139,033 $139,033 $139,033 $ 139,033 $ 139,033 INTEREST $ 1,500 $ 1,605 $ 1,488 $ 1,355 $ 1,205 $ 1,038 $ 854 $ 653 $ 435 $ 198 PRIOR YEAR BALANCE $ 243,583 $ 233,869 $ 222,850 $ 210,232 $ 195,985 $ 180,078 $ 162,478 $ 143,154 $ 122,072 $ 99,200 TOTAL FUNDING $ 284,116 $ 374,508 $ 363,371 $ 350,620 $ 336,223 $ 320,149 $302,366 $282,841 $ 261,540 $ 238,432 MAINTENANCE $ 146,672 $ 148,083 $ 149,564 $ 151,059 $ 152,570 $ 154,096 $ 155,637 $ 157,193 $ 158,765 $ 160,353 TRANSFER OUT $ 3,575 $ 3,575 $ 3,575 $ 3,575 $ 3,575 $ 3,575 $ 3,575 $ 3,575 $ 3,575 $ 3,576 TOTAL COST $ 150,247 $ 151,658 $ 153,139 $ 154,634 $ 156,145 $ 157,671 $159,212 $160,768 $ 162,340 $ 163,929 BALANCE $ 233,869 $ 222,850 $ 210,232 $ 195,985 $ 180,078 162,478 $143,154 $122,072 $ 99,200 $ 74,503 CASH FLOW $ 73,336 $ 74,042 $ 74,782 $ 75,530 $ 76,285 $ 77,048 $ 77,818 $ 78,597 $ 79,383 $ 80,176 OVER/UNDER $ 160,533 $ 148,808 $ 135,450 120,456 $ 103,793 85,430 $ 65,336 $ 43,476 $ 19,818 $ (5,673) ... DEVELOPED LOT $ 428.72 $ 428.72 $ 428.72 $ 428.72 $ 428.72 $ 428.72 $ 428.72 $ 428.72 $ 428.72 $ 428.72 UNDEVELOPED LOT $ 128.62 $ 128.62 $ 128.62 $ 128.62 $ 128.62 $ 128.62 $ 128.62 $ 128.62 $ 128.62 $ 128.62 ASSUMPTIONS: A). Interest is 3% of the previous year ending balance B). 1% increase in Maintenance cost due to inflation C). Remaining landscaped open space areas turned over to City in future years. D). There are 300 developed lot and 81 undeveloped lots. F). Previously approved maximum highest rate, $644 Amount needed to assure that the district operates in a net positive cash flow position CASH FLOW: throughout the year to account for the fact that the revenues from the levy of the assessment is collected twice a year on the property tax bills. OVER / UNDER: Amount over or under the desired Cash Flow amount. PRIOR YEAR BALANCE: Funds available at the end of the previous fiscal year. Utilities 180/0 Service Contracts 43% Admin. & Overhead 8% Personnel Services 31% LANDSCAPE MAINTENANCE DISTRICT NO. ATTACHMENT "E" ATTACHMENT "F" RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF WEST COVINA, CALIFORNIA, CONFIRMING THE ENGINEER'S REPORT AND THE ASSESSMENT CONTAINED IN THAT REPORT FOR LANDSCAPE MAINTENANCE DISTRICT NO. 7; ORDERING LANDSCAPING MAINTENANCE, RENOVATION, AND REPLACEMENT AND APPURTENANCES TO BE MAINTAINED FOR FISCAL YEAR BEGINNING JULY 1,2011 WHEREAS, the City Council of the City of West Covina, California, did in Resolution No. 2011-16 of said City Council, pursuant to the provisions of the "Landscaping and Lighting Act of 1972," (Part 2 of Division 15, Section 22500 et seq. of the Streets and Highways Code of the State of California), and Proposition 218 (Article XIIID of the California Constitution) require a State certified engineer to make and file with the City Clerk a report in writing, presenting certain matters related to annual confirmation West Covina Landscape Maintenance District No. 7 as contemplated under the provisions of said Act; and WHEREAS, such Engineer did make and file in the Office of the City Clerk of said City, a report in writing responsive to the requirements of the Act and Proposition 218; and WHEREAS, the City Council preliminarily approved such report, in conformity with the provisions of said Act; and did thereafter pass its Resolution of Intention 2011-21 declaring its intention to order certain landscaping maintenance, renovation and replacement and appurtenances to be maintained for the Fiscal Year beginning July 1, 2011; and WHEREAS, said City Council did fix and designate June 7, 2011, at the hour of 7:00 p.m. of said day as the time for hearing protests in reference to the proposed maintenance and assessment, at the Council Chambers in the City Hall, 1444 West Garvey Avenue South, in the City of West Covina, California; and WHEREAS, at the time and place above stated for hearing protests in reference to the proposed maintenance and assessment said City Council did proceed to hold such hearing; and WHEREAS, at the time and place above stated for hearing protest in reference to the proposed maintenance and assessment, written and oral protests and objections, if any, were filed and presented, which said protests and objectives, if any, were fully and regularly heard and considered by said City Council. NOW, THEREFORE, the City Council of the City of West Covina, California, does hereby resolve as follows: SECTION 1. That said City Council does hereby deny any and all protests and objections and does hereby approve, confirm and adopt the said report of said Engineer and does hereby approve and confirm the assessment proposed for said proposed maintenance as set forth and referred to in said report, which said report is now on file in the Office of the City Clerk of said City, open to inspection, hereby referred to and made a part hereof; and said City Council does hereby also confirm and adopt the respective instruments therein contained and designated therein as SPECIFICATIONS, DIAGRAM AND PLAN, Estimate of Costs and Assessments, all of which, on file as aforesaid, are hereby incorporated herein and made a part hereof. SECTION 2. That said City Council does hereby order the said contemplated maintenance to be made in accordance with the said PLAN AND SPECIFICATIONS, therefore, so adopted and approved, and does order and determine that the fiscal year referred to in said shall be and the same is hereby fixed and established as the period commencing on July 1, 2011, and ending on June 30, 2012, both dates inclusive, as therein set forth; and said City Council does hereby levy the said proposed total assessment made to cover the costs and expenses of said improvement upon the respective several subdivisions of land in the assessment district and as fixed and determined by said report, as revised, and the proposed assessment, filed therewith, as aforesaid, in the Office of the City Clerk of said City, for the Fiscal Year beginning July 1,2011, and ending June 30, 2012, both dates inclusive. Z:\ RESOLUTION - 20111MD7 PH Res() 2011-2012.doc SECTION 3. That the City Council hereby orders and directs the City Treasurer to establish a special fund entitled "West Covina Landscape Maintenance District No. 7 Fund," and who shall place into said Fund all payments of assessments received from the County Tax Collector and payments shall be made out of said special Fund only for the purposes provided for in said Part 2, Division 15, Streets and Highways Code of the State of California, as set forth in Chapter 5, Section 22655, of said Code. SECTION 4. That the City Clerk of the said City is hereby ordered to transmit, or cause to be transmitted to the County Auditor of Los Angeles County, State of California, as contemplated under the provisions of the "Landscaping and Lighting Act of 1972," the Diagram and Assessment upon which such levy is based, and the County Tax Collector of said County (who is also the City Tax Collector for said City) is hereby designated, required, empowered, authorized, instructed, ordered and directed to make collection of all assessments shown in said Assessment and to perform the acts and duties as are required by law of and to be performed by the officer, employee, or person so designated. SECTION 5. That the City Council fmds that the levy and collection of these assessments is statutorily exempt from CEQA pursuant to Section 15273 of the Guidelines, in that the proceeds of the assessments are to be used for meeting operating expenses, purchasing supplies and meeting financial reserves needs and requirements. SECTION 6. That the City Clerk shall certify to the adoption of this resolution. APPROVED AND ADOPTED this 7th day of June 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 duly adopted by the City Council of the City of West Covina, California, at a regular meeting thereof held on the 7 th day of June 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 ZARESOLUTION - 20111MD7 PH Reso 2011-2012.doc