06-21-2011 - Agreement between the City of West Covina and West - Item 3 (2).pdfecd1091bk
TO: Andrew G. Pasmant, City Manager and
Executive Director and City Council
and the Community Development
Commission
FROM: Christopher J. Chung
Community Development Commission Director
SUBJECT: AGREEMENT BETWEEN THE CITY OF WEST COVINA AND WEST
COVINA COMMUNITY DEVELOPMENT COMMISSION FOR THE
DEVELOPMENT OF A GOLF COURSE AT THE WEST COVINA
SPORTSPLEX SITE
RECOMMENDATION:
It is recommended that the Community Development Commission (“CDC”) Board and the City
Council approve an Implementation Agreement by and between the CDC and the City to develop
a golf course at the West Covina Sportsplex site.
DISCUSSION
For the Community Development Commission (“CDC”) Board and the City Council’s
consideration is an Implementation Agreement by and between the CDC and the City that
memorializes the development of a golf course at the West Covina Sportsplex site. The
development of a golf course as part of the overall Sportsplex development has been envisioned
since redevelopment efforts of the BKK Landfill property initiated in 2002 with CDC’s purchase
of 231-acres of the BKK Landfill property. The CDC further executed a license agreement in
2003 with BKK Corporation to lease 84-acres of the Class III landfill (“Top-Deck”) which was
incorporated as part of the overall 180-acre golf course development. Additionally, the golf
course development obtained various approvals, including from the U.S. Environmental
Protection Agency (“EPA”), California Department of Toxic Substance Control (“DTSC”), U.S.
Department of Fish and Wildlife Service (“USFWS”), Army Corp. of Engineers, and various
others. Significant CDC and City resources have been allocated and expended over the years to
develop a golf course at the Sportsplex site, and the proposed Agreement formalizes the past
efforts and ongoing endeavors between the CDC and the City to develop a golf course as part of
the West Covina Sportsplex project.
BACKGROUND
For many years, the City suffered from the dangers and blighted stigma posed by the 583-acre
(approximately one-square mile) BKK Landfill which started operation in 1962 and collected
over the years approximately 3.4 million tons of hazardous waste (Class I landfill) and 20 million
tons of municipal waste (Class III landfill). The CDC/City explored creative solutions for the
landfill site and after a year of negotiations with BKK Corporation, the City in 2002 purchased
231-acres and leased (in 2003) 84-acres to design and develop what is a multiple award winning
Brownfields redevelopment project. The West Covina Sportsplex project is a multi-component
redevelopment project comprised of, but not limited to, the 18-hole Championship golf course, a
Big League Dreams Sports Park, 360,000 square feet office development, 340,000 square feet
commercial shopping center, along with land for natural habitat preserve. Between 2008 and
2009, the Sportsplex received 13 awards, such as the 2009 Grand Prize National Phoenix Award
for Brownfields redevelopment project, 2009 League of California Cities Helen Putnam Award,
2009 California Redevelopment Association Award of Excellence, 2008 National League of
Cities Silver Award for Municipal Excellence, 2008 International Economic Development
Council Award for Public-Private Partnership, and others.
City of West Covina
Memorandum
A G E N D A
ITEM NO. 3
DATE June 21, 2011
Andrew G. Pasmant, City Manager and the City Council
June 21, 2011
Page 2
ecd1091bk
The CDC and the City have had cooperation and assistance from many partners to redevelop the
BKK landfill property. The first sign of progress came when the CDC/City negotiated
environmental liability protection in the form of Prospective Purchaser Agreements (“PPA”)
from both the U.S. Environmental Protection Agency (“EPA”) and the California Department of
Toxic Substances Control (“DTSC”) that protects the CDC and any developers of the site from
liability as a result of the existing contamination at the BKK Landfill. This agreement was
instrumental in attracting developer interest that was lacking before due to critically high-risk
exposure. The CDC/City further negotiated other agreements, which required BKK to use the
land sale proceeds in addition to other monies to complete landfill closure and related
remediation. Simultaneously, the CDC/City negotiated separate and complex development
agreements with the commercial center developer, the office developer, a Maintenance and
Operations Agreement with Big League Dreams, while at the same time ensuring compliance
with EPA monitoring requirements and site closure by BKK. The orchestration of all these
agencies and the on-going closure of the site were all conducted under federal legislation. In
fact, this project is one of the first Resource Conservation and Recovery Act of 1976 (“RCRA”)
sites in the nation with an executed PPA.
The West Covina Sportsplex project has been constructed in phases with the commercial and the
Big League Dreams sport park components having been completed. A portion of the habitat
preserve area has also been installed. Due to the downturn in the economy in which virtually
every city in the nation has been adversely affected, the physical construction of the office and
the golf course components have been delayed but are vital elements of the overall Sportsplex
project that the CDC/City has initiated and is actively (and never have stopped) pursuing to
complete development. As such, the proposed Implementation Agreement by and between the
CDC and the City consummates the development of the golf course at the Sportsplex project by
the CDC in order to redevelop and remove blight in the community.
FISCAL IMPACT:
There is no fiscal impact with approval of the said Implementation Agreement. Any fiscal
impact from development of the golf course will be disclosed at a future date.
Prepared by: Benjamin Kim Reviewed by: Mike Lee
Redevelopment Manager Assistant CDC Director
Reviewed/Approved by: Christopher J. Chung Reviewed by: Finance
CDC Director
Approved via e-mail
Reviewed/Approved by: City Attorney
Attachments: No. 1 – Agreement
1
IMPLEMENTATION AGREEMENT TO THE
COOPERATION AGREEMENT DATED FEBRUARY 15,
2011 FOR PAYMENT OF COSTS TO THE CITY OF WEST
COVINA ASSOCIATED WITH THE DEVELOPMENT OF
A GOLF COURSE
THIS IMPLEMENTION AGREEMENT (the “Agreement”) is entered into this ____
day of June, 2011, by and between the CITY OF WEST COVINA, a municipal corporation
(“City”) and the WEST COVINA COMMUNITY DEVELOPMENT COMMISSION, a
public body, corporate, and politic (“Commission”), with reference to the following facts:
WHEREAS, on February 15, 2011, the City and Commission entered into that certain
Cooperation Agreement for Payment of Costs Associated With Certain RDA Funded Capital
Improvement and Affordable Housing Projects (“Cooperation Agreement”) wherein the
Commission committed to pledge and otherwise provide net available tax increment to develop
and constructed various redevelopment projects listed in the Cooperation Agreement, and the
City, in consideration for Commission’s financial assistance, agreed to provide for and facilitate
the cooperative planning, undertaking, construction, or operation of redevelopment projects in
accordance with the Commission’s Redevelopment Plans and to aid and cooperate with the
Commission to expeditiously implement the listed projects listed in the Cooperation Agreement.
The Cooperation Agreement and all exhibits thereto are hereby incorporated herein by this
reference.
WHEREAS, the City and Commission desire to cooperate with one another by entering
into this Agreement for the planning, development, and construction of a public championship
golf course to be located on Commission owned and Commission leased property, consisting of
approximately 180 acres of land (“Project”), which is more specifically shown in Exhibit A
attached hereto (collectively the “Site”).
WHEREAS, a portion of the Site was formerly a Class III landfill used for the disposal
of municipal solid waste.
WHEREAS, the City and Commission desire to enter into this Agreement to continue
the long term goals of rehabilitating the Site into a remediated productive use, and further
eliminate blighted conditions on the Site which continue to be an impediment to development of
the Site.
WHEREAS, the City and Commission desire to supplement the provisions of the
Cooperation Agreement to additionally provide for the orderly implementation of the
Cooperation Agreement.
WHEREAS, the obligations of the Commission under the Cooperation Agreement and
this Agreement shall constitute the indebtedness of the Commission for the purpose of carrying
out the Redevelopment Plan for the Project Area and the obligations set forth under this
2
Agreement are contractual obligations of the City and Commission that, if breached, will subject
the City and Agency to damages and other liabilities or remedies.
WHEREAS, pursuant to the Cooperation Agreement, the Commission previously made
the requisite findings pursuant to Health and Safety Code Section 33445 in connection with the
payment of value for land, cost of installation, and construction of any building, facility,
structure, or other improvement which is publicly owned within or without the Project Area,
which are incorporated herein by this reference.
NOW, THEREFORE, parties hereto do mutually agree as follows:
I. COMMISSION’S OBLIGATIONS
A. Consistent with the Commission funding pledge under the Cooperation
Agreement, the Commission agrees to provide funds to the City under this Agreement in the
amount of Forty-Five Million Dollars ($45,000,000) for the Project. The obligation of the
Commission under this Agreement shall be payable out of net available tax increment, as defined
herein. Whenever used in this agreement, the term “net available tax increment” shall mean and
include tax increment as defined or provided for in any applicable constitutional provision,
statute or other provision of law now existing or adopted in the future, and allocated to (i) the
Commission and/or (ii) any lawful successor entity of the Commission and/or (iii) any entity
established by law to carry expend tax increment and/or (iv) any entity established by law to
expend tax increment and/or (v) any entity established by law to pay indebtedness of the
Commission to be repaid in whole or in part with tax increment pursuant to Section 33670 et seq.
of the California Community Development Law or any applicable constitutional provision,
statute or other provision of law now existing or adopted in the future.
B. Payments to be made by the Commission to the City under this Agreement shall
be made by the Commission as they are incurred by the City or as demanded by the City when
necessary to perform its obligations and duties hereunder. City shall provide Commission with a
quarterly report accompanied by evidence reasonably satisfactory to the Commission's Executive
Director that the City has progressed in the development and construction of the Project and that
the City has incurred costs or obligations to make payments equal to or greater than such
amount.
C. The indebtedness of Commission under this Agreement shall be subordinate to
the rights of the holder or holders of any existing or future bonds, notes or other instruments of
indebtedness (all referred to herein as "Indebtedness") of Commission incurred or issued to
finance the Project or other Redevelopment Project Areas, including without limitation any
pledge of tax increment revenues from the Redevelopment Project Areas to pay any portion of
the principal (and otherwise comply with the obligations and covenants) of any bond or bonds
issued or sold by Commission with respect to the Redevelopment Project Areas.
3
II. CITY’S OBLIGATIONS
A. In consideration of Commission’s obligations set forth in Section I above, City
agrees to undertake the design, planning, and development of the Project on behalf of the
Commission and to effectuate the purpose and intent of the California Redevelopment Law and
Project Area Plan in a manner consistent with California Redevelopment Law. The City may
develop the Project independently or in partnership with a private developer in a manner
consistent with this Agreement.
B. The City shall accept any funds offered by the Commission pursuant to this
Agreement and shall devote those funds to the completion of the Project by (i) reimbursing the
City or using such funds to make City expenditures to perform the work required to carry out and
complete the Project and/or; (ii) utilize such funds to pay debt service on bonds or other
indebtedness or obligations that the City has or will incur for such purposes; and/or (iii) paying
such funds into a special fund of the City to be held and expended only for the purposes of
satisfying the obligations of the City hereunder.
C. It shall be the responsibility of City to pay all development and construction costs
in connection with the Project from funds paid to the City by the Commission under this
Agreement.
D. The City shall perform its obligations hereunder in accordance with the applicable
provisions of federal, state and local laws, including the obligation to comply with environmental
laws such as CEQA.
III. SCOPE OF DEVELOPMENT
The Project shall consist of a public championship golf course consisting of a minimum of 18-
hole course and club house to be located on a site consisting of approximately 180 total acres, of
which, 130 acres is owned by the Commission and an additional 50 acres is leased by the
Commission pursuant to a long term ground lease.
IV. LIABILITY AND INDEMNIFICATION
In contemplation of the provisions of California Government Code Section 895.2 imposing
certain tort liability jointly upon public entities solely by reason of such entities being parties to
an agreement as defined by Government Code Section 895, the parties hereto, as between
themselves, pursuant to the authorization contained in Government Code Sections 895.4 and
895.6, shall each assume the full liability imposed upon it, or any of its officers, agents or
employees, by law for injury caused by negligent or wrongful acts or omissions occurring in the
performance of this Agreement to the same extent that such liability would be imposed in the
absence of Government Code Section 895.2. To achieve the above-stated purpose, each party
indemnifies, defends and holds harmless the other party for any liability, losses, cost or expenses
that may be incurred by such other party solely by reason of Government Code Section 895.2.
4
V. ENTIRE AGREEMENT: WAIVERS AND AMENDMENTS
A. This Agreement integrates all of the terms and conditions mentioned herein or
incidental hereto, and supersedes all negotiations or previous agreements between the parties
with respect to the subject matter of this Agreement.
B. This Agreement is intended solely for the benefit of the City and the Commission.
Notwithstanding any reference in this Agreement to persons or entities other than the City and
the Commission, there shall be no third party beneficiaries under this Agreement.
C. All waivers of the provisions of this Agreement, and all amendments to this
Agreement must be in writing and signed by the authorized representatives of the parties.
VI. SEVERABILITY
If any term, provisions, covenant or condition of this Agreement is held by a court of competent
jurisdiction to be invalid, void or unenforceable, the remainder of the provisions shall continue in
full force and effect unless the rights and obligations of the parties have been materially altered
or abridged by such invalidation, voiding or unenforceability.
VII. DEFAULT
If either party fails to perform or adequately perform an obligation required by this Agreement
within thirty (30) calendar days of receiving written notice from the non-defaulting party, the
party failing to perform shall be in default hereunder. In the event of default, the non-defaulting
party will have all the rights and remedies available to it at law or in equity to enforce the
provisions of this contract, including without limitation the right to sue for damages for breach of
contract. The rights and remedies of the non-defaulting party enumerated in this paragraph are
cumulative and shall not limit the non-defaulting party's rights under any ether provision of this
Agreement, or otherwise waive or deny any right or remedy, at law or in equity, existing as of
the date of. The Agreement or hereinafter enacted or established, that may be available to the
non-defaulting party against the defaulting party. All notices of defaults shall clearly indicate a
notice of default under this Agreement.
VIII. BINDING ON SUCCESSORS
This Agreement shall be binding on and shall inure to the benefit of all successors and assigns of
the parties, whether by agreement or operation of law.
[Signature on the following page]
5
IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first
set forth above.
THE CITY OF WEST COVINA (the “City”)
___________________________________
Andrew Pasmant, City Manager
THE WEST COVINA COMMUNITY
DEVELOPMENT COMMISSION (the
“Commission”)
_________________________________
Andrew Pasmant, Executive Director
ATTESTED:
___________________________________
City Clerk/Commission Secretary
APPROVED AS TO FORM:
___________________________________
City Attorney/Commission Counsel
TO: Andy Pasmant, City Manager
and City Council
FROM: Tom Bachman, Assistant City Manager
SUBJECT: APPROPRIATIONS LIMIT FOR FISCAL YEAR 2011-2012
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, SETTING THE ANNUAL
APPROPRIATIONS LIMIT FOR THE FISCAL YEAR
ENDING JUNE 30, 2012.
DISCUSSION:
Article XIIIB of the California Constitution imposes an appropriations limit on units of state and
local governments. This report calculates the 2011-2012 appropriations limit for the City of West
Covina to be $110,790,424.
In response to a perception that government spending was increasing without any controls, the
voters passed Proposition 4, "The Gann Initiative," which is now included in the California
Constitution as Article XIIIB. This article limits the amount of appropriations (related to tax
proceeds) that state or local governments can establish each year.
The appropriations of tax proceeds excludes revenues from the following sources:
Special Benefit Assessments
Licenses and Permits
Franchise Fees
Developer Fees
Fines, Forfeitures and Penalties
Other Governmental Restricted Revenues
Gas Taxes
User Fees
The following revenue sources are subject to the appropriations limit:
Property Taxes
Sales and Use Taxes
Business License Taxes
Transient Occupancy Taxes
Other Taxes
Appropriations for debt financed capital outlay (such as the Civic Center lease payment and leased
vehicles) are deducted from the limit.
Proposition 111 amended the California State Constitution to require annual adjustments in the
appropriations limit based upon increases or decreases in population and inflation. Each year, the
City must calculate the limit using the following formula:
City of West Covina
Memorandum
AGENDA
Item No.: 4
Date: June 21, 2011
Appropriations Limit 2011-2012
Page 2
Base Year Appropriation Limit (Prior Year Actual Beginning with 1986-87 Expenditures)
x Cumulative Growth Factor (1)
= Current Year Appropriation Limit
(1) Inflation change factor (Change in California per
capita income or change in local assessments due to the
addition of non-residential new construction) multiplied
by population change factors (change in population for
either the City or the County).
Factors are calculated using the following formula
Percentage Change + 100 = Factor
100
The appropriations limit for 2011-2012 has been computed in accordance with the provisions of
Article XIIIB of the California Constitution. The constitution, as amended, requires the governing
body to specify the option selected for each factor. The selection of each growth factor and the
appropriations limit computation are shown on the attached worksheet.
Documentation has been made available for public inspection for the required fifteen days prior to
the establishment of the appropriations limit.
The City's proceeds from taxes are projected at $36,052,346, which is less than the appropriations
limit.
_______________________________ ____________________________________
Prepared by: Denise Bates Reviewed/Approved by: Tom Bachman
Accounting Manager Assistant City Manager
Attachment
CITY OF WEST COVINA
2011-2012
APPROPRIATIONS LIMIT COMPUTATION
2010-2011 Appropriations Limit $107,553,076
Multiply by Cumulative Growth Factor
1.0301
2011-2012 Appropriations Limit $110,790,424
* Inflation Change: = 2.51 Percent = 1.0251 Factor
California Per Capita Personal Income
** Population Change:
County of Los Angeles = .49 Percent = 1.0049 Factor
Cumulative Growth Factor:
Calculation: 1.0251 X 1.0049 = 1.0301 Ratio
* Change in California Per Capita Personal Income was selected because it exceeds the change
in Non-Residential Assessed Value due to New Construction of –.8434%.
** County of Los Angeles population change was selected because it exceeds the City of West
Covina change of 0.21%.
RESOLUTION NO. ______
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
WEST COVINA, CALIFORNIA, SETTING THE ANNUAL
APPROPRIATIONS LIMIT FOR THE FISCAL YEAR ENDING
JUNE 30, 2012
WHEREAS, Article XIIIB of the California Constitution requires the Legislative
Body to establish its appropriations limit at a regularly scheduled meeting for the upcoming fiscal
year ending June 30, 2012; and
WHEREAS, Section 7910 of the Government Code requires the governing body of
each local jurisdiction to make such determinations and establish its appropriations limit by
resolution; and
WHEREAS, the appropriations limit documentation has been available for public
inspection for the required fifteen days, per Section 7910 of the Government Code, prior to the
approval of the limit by Legislative Body.
WHEREAS, for the fiscal year ending June 30, 2012, the appropriations limit has
been computed using the change in population for the County of Los Angeles (rather than for the
City of West Covina) and the change in California per capita personal income (rather than the
change in local assessed value due to the addition of non-residential new construction).
NOW, THEREFORE, the City Council of the City of West Covina does resolve as
follows:
SECTION 1. The appropriations limit for year ending June 30, 2012, is established
at $110,790,424; and
SECTION 2. That the City Clerk shall certify to the adoption of this resolution and
the same shall be in full force in effect immediately upon adoption.
APPROVED AND ADOPTED this 21st day of June 2011.
______________________________
Mayor Steve Herfert
ATTEST:
______________________________
City Clerk Laurie Carrico
I HEREBY CERTIFY that the foregoing Resolution No. ______ was duly adopted
by the City Council of the City of West Covina at a regular meeting thereof, held on the 21st day of
June 2011, by the following vote of the Council:
AYES: Council members
NOES: Council members
ABSENT: Council members
______________________________
City Clerk Laurie Carrico
APPROVED AS TO FORM:
________________________________
City Attorney Arnold Alvarez-Glasman
TO: Andrew G. Pasmant, City Manager
and City Council
FROM: Tom Bachman, Assistant City Manager/Finance Director
SUBJECT: AWARD OF PURCHASE FOR COMPUTER SERVER VIRTUALIZATION
PROJECT
RECOMMENDATION:
It is recommended that the City Council award a purchase contract to Accent Computer Solutions,
Inc. to provide equipment and services necessary to install replacement server hardware for the
City’s computer network in the amount of $56,351.97, and authorize the City Staff to execute the
contract.
DISCUSSION:
The City retained Accent Computer Solutions, Inc in 2009 to provide network monitoring and
maintenance services for the City Hall computer network. Additionally, Accent has been tasked with
providing City staff with a network infrastructure hardware upgrade plan in order to evaluate the
City’s current infrastructure and recommend technology and hardware necessary to bring the City’s
aging system up to current, more efficient standards. The plan was developed so that this new
technology could be implemented in phases. Risk factors of potential failing equipment and the
City’s budget constraints were major considerations in designing a plan that not only modernizes the
network infrastructure to current standards, but also provides an logical path for further infrastructure
upgrades should funding become available in the future.
The City’s network currently consists of 16 physical servers, many of which are aging. Aging
servers present a significant risk of hardware failure, data loss, and downtime. The City started the
first phase of this upgrade plan in 2010 with the virtualization of five of the City’s oldest and most
vulnerable servers onto a single virtual host server. The second phase of the upgrade plan that is
being recommended here, will continue the replacement of the existing aging servers and continue to
leverage the virtualization technology. More specifically, phase two will include the implementation
of two new host servers and a Storage Area Network (SAN). This phase will result in virtualization
of all of the older remaining servers and virtualize those systems onto the two new host servers.
With the new configuration of two additional host servers and the SAN, the City’s network
performance will be significantly improved.
In addition to the performance and reliability improvements, there are also financial benefits to this
upgrade. Replacing the current servers would cost approximately $5,000 for each server. The City
can use the funds for this project that would otherwise be needed to replace the individual servers.
This new system should also save $2,000 in annual software maintenance costs. Finally, there will
be a power reduction savings by retiring eight servers and virtualizing seven servers, and replacing
them with 2 new physical host servers. The energy savings are estimated to be almost $10,000 each
year. Staff is also working with Southern California Edison to determine if this upgrade project may
also be eligible for rebates.
FISCAL IMPACT:
The purchase contract includes all hardware, equipment, warranties, software, and installation and
configuration services necessary to implement the network upgrade. Sufficient funds for this
purchase are available in the 2010-11 Finance Department budget as a result of salary savings and
in the computer network and maintenance accounts. .
___________________________________
Prepared by: Tom Bachman,
Assistant City Manager/Finance Director
City of West Covina
Memorandum
AGENDA
Item No.: 5
Date: June 21, 2011
Andrew G. Pasmant, City Manager
and City Council
Page 2 — June 21, 2011
The effect on the reserves will vary depending on the actions taken in regards to the rates. Listed
below are two "10-Year Fiscal Projections" and the effects on their reserves.
1. Maintaining the rate at the current level of 11.88 cents per 100 dollars of assessed value will
have a negative impact on reserves, but will retain sufficient reserves (Ending Balance) to
assure that the district operates in a positive cash flow in future years (Recommended -
Attachment "C-1"). A review of the revenues would be conducted annually to affirm the
stability of the district.
2. Increase current rate by 2.0% from 11.88 cents to 12.12 cents per 100 dollars of assessed
valuation in 2011-2012 Fiscal Year. At this rate, property valued at $400,000 would be
assessed $484.80 (Attachment "C-2"). This rate will not be subject to the voting requirements
of Proposition 218 since it is less than the capped rate of 18.75 cents per 100 dollars of
assessed value. At this rate, the reserves would be maintained at their current level.
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 CIPs, emergencies, and as a benefit it
also provides interest income. There is no impact to the General Fund.
Prepared by: Miguel Hernandez
Civil Engineering Associate
Reviewed/Apiiroved by: Shannon A. Yauchzee
Director/City Engineer
Reviewed/Approved by:
Finance
Attachment "A" — Map
Attachment "B" — 15-Year Rate History
Attachment "C" — 10-Year Fiscal Projection
Attachment "D" — Budget and Estimated Revenue Summary
Attachment "E" — Chart
Attachment "F" — Resolution
Z:1AGENDA - 2011 \MD1 Set Rates 2011-2012.doe
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ATTACHMENT "B"
MAINTENANCE DISTRICT NO.
15-YEAR RATE HISTORY
Fiscal Year Cents per $100 of
Assessed value
Assessment for
assessed value of
$400,000
Proposed
2011-2012 _ 11.8S $475.20
2010-2011 11.88 $475.20 i
2009-2010 _ 1 I .88 $475.20
2008-2009 11.65 $466.00
2007-2008 11.42 $456.80 ,
2006-2007 11.04 $441.60
2005-2006 10.50 $420.00
2004-2005 9.75 s $390.00
2003-2004 _ 9.00 $360.00
2002-2003 8.70 $348.00
2001-2002 8.00 $320.00
2000-2001 7.30 $292.00
1999-2000 6.60 $264.00
1998-1999 6.60 $264.00
1997-1998 _ 3.80 $152.00
1996-1997 1.00 $40.00
ZAAGENDA - 20111MD1 Set Rates 2011-2012.doc
06/08/2011 ATTACHMENT "C-1" WEST COVINA MAINTENANCE DISTRICT NO. 1 10 YEAR FISCAL PROJECTION - RECOMMENDED PERCENT INCREASE 0.00% 0.00% 0.00% 0.000/0 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 INTEREST PRIOR YR. BALANCE TOTAL FUNDING OPERATING EXP. C.I.P. TRANSFER OUT TOTAL COST ENDING BALANCE CASH FLOW OVER/UNDER Assess, Per Assessed Valuation . ... $400K -.-.-.- $ 260,922 $ 11,831 $ 1,183,121 $ 1,455,875 $ 323,696 $ 114,717 $ 1,195 $ 439,608 $1,016,267 $ 161,848 $ 854,419 475.33 $ 260,922 9,000 $ 1,082,513 $ 1,352,435 $ 335,075 $ 1,195 336,270 $ 1,016,165 $ 167,538 $ 848,628 $ 475, $ 260,922 $ 10,162 $ 1,016,165 $ 1,287,249 $ 338,426 $ 1,195 339,621 $ 947,629 S 169,213 $ 778,416 475.33 $ 260,922 $ 9,476 $ 947,629 $ 1,218,027 : $ 341,810 $ 1,195 $ 343,005 $ 875,022 $ 170,905 : $ 704,117 $ 75.33 $ 260,922 $ 8,75(1. $ 875,022 444,695 $ 345,228 $ - $ 1,195 $ 346,423 $ 798,272 172,614 $ 625,658 475.33 $ 260,922 .,- $ 7,983 $ 798,272 $ 1,067,177 $ 348,680 $- $ 1,195 $ 349,05 $ 717,302 $ 174,340 : $ 542,961 $ .. 75.33 $ 260,922 7,173 $ 717,302 $ 985,397 $ 352,167 - $ 1,195 $ 353,362 $ 632,035 176,084 $ 455,951 475.33 $ 260,922 $ 6,320 $ 632,035 $ 899,278 $ 355,689 - $ 1,195 356,884 $ 542,394 $ 177;844 $ 364,549 $ 475.33 $ 260,922 5,424 $ 542,394 $ 808,740 $ 359,246 $ 1,195 160,441 $ 448,299 $ 179,623 $ 268,676 475.33 $ 260,922 $ 4,483 $ 448,299 _ . S 713,705 :. $ 362,838 $ 1,195 $ 364,0331: $ 349,671 _ 181,419 : $ 168,252 475.33 . Rate per $100 A.V. $ 0.1188 $ 0.1188 $ 0.1188 $ 0.1188 $ 0.1188 $ 0.1188 $ 0.1188 $ 0.1188 0.1188 $ 0.1188 ASSUMPTIONS: A) Interest is 3% of the previous year ending balance B) 1% increase in maintenance cost each year due to inflation C) 1% increase in assessed valuation each year D) Increase by 0.75 cents in FY 2004-2005, 2005-2006, and 2006-2007 E) Previously approved maximum highest rate, 18.75 cents DEFINITIONS: CASH FLOW: Amount needed to assure that the district operates in a net positive cash flow position throughout the year to account for the OVER / UNDER: Amount over or under the desired Cash Flow amount. PRIOR YEAR BALANCE: Funds available at the end of the previous fiscal year. 1OYMD1 2011-2012 Page 1
06/08/2011 ATTACHMENT "C-2" WEST COVINA MAINTENANCE DISTRICT NO. 10 YEAR FISCAL PROJECTION PERCENT INCREASE 0.00% _ 2.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.000/0 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 $ 260,922 $ 266,141 $ 266,141 $ 266,141 $ 266,141 $ 266,141 $ 266,141 $ 266,141 $ 266,141 $ 266,141 INTEREST $ 11,831 $ 9,000 . 10,214 $ 9,581 , 4 8,908 8,195 7,439 S 6,641 $ 5,800 $ PRIOR YR. BALANCE $ 1483,121 $ 1,082,513 $ 1,021,384 $ 958,118 $ 890,835 $ 819,461 $ 743,921 $ 664,139 $ 580,037 $ 491,538 TOTAL FUNDING $11 4551 875 $ 11 3571 654 $ 1,297,739 $ 1,233,840 $ 1,165,884 $ 1,093,796 $1,017,501 $ 936,921 $ 851,97 762,594 OPERATING EXP. $ 323,696 $ 335,075 $ 338,426 $ 341,810 $ 345,228 $ 348,680 $ 352,167 $ 355,689 $ 359,246 $ 362,838 C.I.P. 114,717 - - $ - $ TRANSFER OUT $ 1,195 $ 1,195 $ 1,195 $ 1,195 $ 1,195 $ 1,195 $ 1,195 $ 1,195 $ 1,195 $ 1,195 TOTAL COST $ 439,608 336,270 339,621 $ 343,005 5 346,423 $ 349,875 $ 353,362 $ 356,884 $ 360,441 5 364,033 ENDING BALANCE $ 1,016,267 $1,021,384 $ 958,118 $ 890,835 $ 819,461 $ 743,921 $ 664,139 $ 580,037 $ 491,538 $ 398,561 CASH FLOW $ 161,848 167,538 $ 169,213 170,905 $ 172,614 $ 174,340 176,084 $ 177,844 $ 179,623 1814419 OVER/UNDER $ 854,419 5 853,846 $ 788,905 $ 719,930 $ 646,847 $ 569,581 $ 488,055 $ 402,193 $ 311,915 $ 217,142 Assess: $400K 475.33 $ 484.83 484.83 484.83 484.83 $ 484.83 $ 484.83 484.83 $ 484.83 484.83 Assessed Valuation Rate per $100 A.V. $ 0.1188 $ 0.1212 $ 0.1212 $ 0.1212 $ 0.1212 $ 0.1212 $ 0.1212 $ 0.1212 $ 0.1212 $ 0.1212 , ASSUMPTIONS: A) Interest is 3% of the previous year ending balance B) 1% increase in maintenance cost each year due to inflation C) 1% increase in assessed valuation each year D) Increase by 0.75 cents in FY 2004-2005, 2005-2006, and 2006-2007 E) Previously approved maximum highest rate, 18.75 cents DEFINITIONS: CASH FLOW: Amount needed to assure that the district operates in a net positive cash flow position throughout the year to account for the OVER / UNDER: Amount over or under the desired Cash Flow amount. PRIOR YEAR BALANCE: Funds available at the end of the previous fiscal year. 1OYMD1 2011-2012 Page
ATTACHMENT "D"
CITY OF WEST COVINA
LANDSCAPE MAINTENANCE DISTRICT NO.
BUDGET AND ESTIMATED REVENUE SUMMARY
FOR
FISCAL YEAR 2011-201
Submitted by:
Shannon A. Yauchzee
Public Works Director/City Engineer
Date:
06/08/201IMD 1 2011-2012 Fin
LANDSCAPE MAINTENANCE DISTRICT NO. 1
FISCAL YEAR 2011-2012
BUDGET SUMMARY AND RESERVES
I. MAINTENANCE
A. Personnel Services
B. Materials and Services
C. Equipment Outlay
TOTAL MAINTENANCE
II. ENGINEERING & INCIDENTAL
A. Personnel Services
B. Materials and Services
C. Equipment Outlay
TOTAL ENGINEERING
TOTAL OPERATING BUDGET
III. CAPITAL IMPROVEMENTS
TOTAL CAPITAL BUDGET
TOTAL OPERATING
AND CAPITAL BUDGET
IV, TRANSFER OUT
TOTAL
V. FUND BALANCE
A. Cash Flow
B. Contingency Reserve
$ 134,772
$ 196,245
0
$ 331,017
5 4,058
$
0
0
4,058
S 335,075
0
S 335,075
1,195
$ 336,270
$ 167,538
$ 854,627
TOTAL FUND BALANCE $ 1,022,165
TOTAL DISTRICT BUDGET $ 1,358,435
06/08/2011MD 1 2011-2012 Fin 2
LANDSCAPE MAINTENANCE DISTRICT NO. 1
FISCAL YEAR 2011-2012
BUDGET DETAIL AND RESERVES
I. Direct Maintenance
A. Personnel Services
I. Full Time Salaries and Benefits
2. Limited Service Salaries
3. Overtime
Sub-Total
B. Materials and Services
I. Maintenance Contracts
2. Utilities
3. Grounds Lanscaping Supplies
4. Property & Liability Insurance
5. Administration & Overhead
Sub-Total
C. Equipment Outlay
Sub-Total
TOTAL MAINTENANCE
II. Engineering and Incidental
A. Personnel Services
1. Full Time Salaries and Benefits
B. Materials and Services
C. Equipment Outlay
TOTAL ENGINEERING
134,468
304
134,772
$ 100,000
$ 60,120
$ 8,040
$ 1,403
$ 26,682
196,245
331,017
4,058
4,058
TOTAL OPERATING BUDGET
III. Capital Improvements
TOTAL CAPITAL
INIPROVEMENT BUDGET
TOTAL OPERATING AND
CAPITAL BUDGET
335,075
335,075
IV. TRANSFER OUT 1,195
336,270
Fund Balance
A. Cash Flow
B. Contingency Reserve
TOTAL
$ 167,538
$ 854,627
TOTAL DISTRICT RESOURCES
1,358,435
MD 12011-2012 Fin
LANDSCAPE MAINTENANCE DISTRICT NO. 1
FISCAL YEAR 2011-2012
ESTIMATED REVENUE SUMMARY
I. Assessment Income (Net)
II Interest Income
TOTAL ESTIMATED REVENUES
HI Cash Fund Balance (Reserves from Prior Year 2010-2011)
TOTAL FUNDS AVAILABLE
$ 260,922
15,000
$ 275,922
S 1,082,513
$ 1,358,435
ASSESSMENT RATES ARE PROPOSED AS FOLLOWS:
ASSESSMENT RATE:
$ 0.1188 per hundred dollars of assessed valuation
ASSESSED VALUATION:
Los Angeles County Assessor's Roll
Secured Valuation:
Unsecured Valuation:
219,443,314
188,333
TOTAL ASSESSED VALUATION $ 219,631,647
GROSS INCOME
Tax Rate x Total assessed value = ($0.1188 / S100 ) x $219,631,647 = $ 260,922
4
06/08/2011MD 12011-2012 Fin
LANDSCAPE MAINTENANCE DISTRICT NO. 1
FISCAL YEAR 2011-2012
REVISED PROJECTED RESERVE ( FY 2010-2011)
Fund Balance as of June 30, 2010 $ 1,183,121
Projected Revenue for Fiscal Year 2010-2011 339,000
Appropriations for Operating and (439,608)
Capital for Fiscal Year 2010-2011
REVISED PROJECTED FUND BALANCE 1,082,513
JUNE 30,2011
06/08/2011MD 12011-2012 Fin
Admin. & Overhead 8% 11-.•11•11111.e. b. .4 le M. •111•11•▪ ••••••• •••••• •••••••••••••••'n • • • • • II • •• • • • • • • • • • • • III • • • • • • • • • • II • • • • • • • • • ••• • • • • III • • • • • • • • • • II • • • • • • • • • • • • • • • • • • • • • . • •••••••••. •••••••••• . • • • . &:**X4iNNOTANAWM Utilities 18% Supplies 2% itAttik44, Service Contracts 30% ATTACHMENT "E" LANDSCAPE MAINTENANCE DISTRICT NO. 1 FISCAL YEAR 2010-2011 Liability Ins 0% z v ...400.- 4s*Vett. **404,470. * * .4.. ss • • *es >. Personnel Services 42%
ATTACHMENT "F"
RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF WEST
COVINA, CALIFORNIA, SETTING THE AMOUNT OF FUNDS
NECESSARY TO BE RAISED FOR WEST COVINA LANDSCAPE
MAINTENANCE DISTRICT NO. 1 AND FIXING THE TAX RATE FOR
SAID MAINTENANCE DISTRICT FOR THE FISCAL YEAR
BEGINNING JULY 1, 2011
The City Council of the City of West Covina, California, does hereby resolve as follows:
SECTION 1. As applicable, the tax levied on the real property is exempt from
the application of Article XIII A, Section 1(A) and Article XIII C of the Constitution of the State
of California and is levied for the benefit of the residents of the district.
SECTION 2. The amount of funds necessary to be raised by the tax, upon the
assessable property within Maintenance District No. I, City of West Covina, for the current
Fiscal Year beginning July 1, 2011, is hereby fixed as follows:
For the cost of maintaining and operating the open space, improvements, and
facilities thereon within the Maintenance District No. 1, City of West Covina: $335,075.
SECTION 3. For the purpose of raising the funding necessary to be raised by the
tax upon the assessable property within Maintenance District No. 1, City of West Covina as
revenue to maintain and operate the open space, improvements and facilities within the said
Maintenance District, the rate is hereby fixed and taxes are hereby set on all assessable real
property in the said Maintenance District for the Fiscal Year beginning July 1, 2011, at the rate
of 11.88 cents upon one hundred dollars of assessed value of said assessable real property as
assessed by the County Assessor and equalized by the Assessment Appeals Board of the County
of Los Angeles and with respect to certain property as assessed by the State Board of
Equalization and equalized by said Board as follows:
stimated Assessed Value of Land Within Entire District $219,631,647
Benefit Tax Rate $0.1188 per one
hundred dollars
No separate tax is being levied upon the assessable property within any zone in
Maintenance District No. 1 for the Fiscal Year beginning July 1, 2011, and no funds are being
raised to finance special services within any such zone.
APPROVED AND ADOPTED this 21 5t day of June 201
Mayor Steve Herfert
ATTESTED:
ity 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 21 s1 day of June 2011, by the following
vote of the City Council:
AYES:
NOES:
ABSENT:
ity Clerk Laurie Carrico
APPROVED AS TO FORM:
City Attorney Arnold Alvarez-Glasman
ZARESOLUTION - 20111MD1 Reso 2011-2012.doc
CiO, of West Covina
TO: Andrew G. Pasmant, City Manager Memorandum and City Council
AGENDA
FROM: Shannon A. Yauchzee, Director/City Engineer
Public Works Department ITEM NO. 7
DATE June 21, 2011
SUBJECT: WEST COVINA LANDSCAPE MAINTENANCE DISTRICT NO. 2
SETTING OF 2011-2012 ASSESSMENT RATE
RECOMMENDATION:
It is recommended that the City Council adopt the following resolution, which provides for the
assessment rates to be maintained at their current rate of 6.30 cents per 100 dollars of assessed
valuation.
RESOLUTION NO. - A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF WEST COVINA, CALIFORNIA, SETTING THE
AMOUNT OF FUNDS NECESSARY TO BE RAISED FOR WEST
COVINA LANDSCAPE MAINTENANCE DISTRICT NO. 2 AND FIXING
THE TAX RATE FOR SAID MAINTENANCE DISTRICT FOR THE
FISCAL YEAR BEGINNING JULY 1, 2011
DISCUSSION:
In 1970, a planned community development known as Woodside Village began with "clustered"
housing units on smaller lots and numerous open space areas. This combination of small lots and
open space areas was developed to provide more cost effective housing and to create a park like
setting. In order to pay for the maintenance of the open space areas, Landscape Maintenance
District No. 2 was formed as an ad valorem assessment district pursuant to the Municipal
Improvement Act of 1911. The district is generally located north of Amar Road, east of Lark
Ellen Avenue and west of Azusa Avenue and contains 787 properties (Attachment "A"). The
assessments within an ad valorem district are based on property value rather than benefit as in the
other districts, which were formed pursuant to the Landscaping and Lighting Act of 1972. In
1972, Proposition 92 capped the tax rates for the ad valorem districts at their 1972 rate, which for
Maintenance District No. 2 was 18.75 cents per 100 dollars of assessed value. Ad valorem is a
Latin term that means according to value.
The financial condition of Maintenance District No. 2 improved during the late 1980's and early
1990's due to the significant growth in assessed valuation resulting from the rapidly rising
property values. As a result of this situation, the City Council had levied a nominal assessment
of one cent per 100 dollars of assessed value in an effort to reduce reserves. The nominal rates
continued for eight years. A I5-year rate history is included in this report (Attachment "B").
ALTERNATIVES:
The City Council may choose to retain the current rate, reduce, or increase the proposed rate.
The fiscal impact on the district will vary depending upon the City Council action. Attached is a
series of "10-Year Fiscal Projections" for the district. 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 a future City Council to any such action. Every year this assessment is
evaluated and acted on independent of past projections.
FISCAL IMPACT:
The proposed Operating Budget for the district is $102,887, which is an increase of 3.47% when
compared to the approved/amended budget of $99,441 for Fiscal Year 2010-2011. The increase
is due to the increase in personnel costs. This funds the regular landscape maintenance and
graffiti abatement within this district.
ZAAGENDA - 20111114D2 Set rates 2011-2012.doe
Andrew G. Pasmant, City Manager
and City Council
Page 2 —June 21, 2011
For 2011-2012 Fiscal Year, the assessment rate is proposed to be maintained at the current rate of
6.30 cents per 100 dollars of assessed value. At this rate, the annual assessment for a home and
property valued at $400,000 would be $252.00 per year. The projected fund to be raised from the
proposed rate is $113,760, which will continue to fund the current maintenance activities without
any negative impact on the reserves for the district. The financial status of the district will be
reviewed annually to determine the appropriate tax rate and the impact on the reserves.
Furthermore, a portion of Maintenance District No. 2 is overlaid by Maintenance District No. 4.
A Benefit Assessment District was formed in 1975 to encompass the previously remaining
undeveloped areas of the Woodside Village planned community development. As a result, a
portion of the assessment collected from Maintenance District No. 2 is reimbursed to
Maintenance District No. 4. In turn, this Benefit Assessment within the overlaid portion of
Maintenance District No. 4 is reduced proportionately to reflect this reimbursement. For 2011-
2012 Fiscal Year, the reimbursement is $10,000 to reflect the appropriate share of the actual tax
collections.
In addition, for those 370 properties that are within the overlaid portion of Maintenance District
No. 4, the property owners pay an assessment to Maintenance District No. 4 that ranges from
$77.89 to $260.98 per year. This assessment is based on the benefit received by the property
from the surrounding landscaping improvements.
The financial status of the district will be reviewed annually to determine the appropriate tax rate
and the impact on the reserves. The effect on the reserves will vary depending on the actions
taken in regard to the rates. Listed below are two "10-Year Fiscal Projections" and the effects on
their reserves.
Maintaining the rate at the current level of 6.30 cents per 100 dollars of assessed value will
have a negative impact on reserves, but will retain sufficient reserves (Ending Balance) to
assure that the district operates in a positive cash flow in future years (Recommended -
Attachment C-1). A review of the revenues would be conducted annually to affirm the
stability of the district.
Increase current rate by 2.0% from 6.30 cents to 6.43 cents per 100 dollars of assessed
valuation in 2011-2012 Fiscal Year. At this rate, property valued at $400,000 would be
assessed $257.20 (Attachment C-2). This rate will not be subject to the voting requirements
of Proposition 218 since it is less than the capped rate of 18.75 cents per 100 dollars of
assessed value.
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 CIP projects, emergencies, and as a
benefit it also provides interest income. There is no impact to the General Fund.
Prepared by: Miguel Hernandez
Civil Engineering Associate
Reviewed/Approve by: Shannon A. Yauchzee
Director/City Engineer
I
Reviewed/Approved by:
Finance
Attachment "A" — Map
Attachment "B" 15-Year History
Attachment "C-1" — 10-Year Fiscal Projection— Recommended
Attachment "C-2" — 10-Year Fiscal Projection
Attachment "D" — Budget and Estimated Revenue Summary
Attachment "E" — Chart
Attachment "F" — Resolution
Z:1AGENDA - 20111MD2 Set rates 2011-2012. doe
ATTACHMENT "A"
LANDSCAPE MAINTENANCE
DISTRICT NO. 2
swe
ATTACHMENT "B"
MAINTENANCE DISTRICT NO. 2
15-YEAR HISTORY
Fiscal Year Per $100 of
Assessed Value
Assessment for
assessed value
of $400,000
P roposed
2011-2012 .0630 . 2.
2010-2011 $ 0.0630 $ 252.00
2009-2010 $ 0.0630 $ 252.00
2008-2009 $ 0.0618 $ 247.20
2007-2008 $ 0.0606 $ 242.40
2006-2007 $ 0.0592 $ 236.80
2005-2006 $ 0.0582 $ 232.80
2004-2005 $ 0.0561 $ 224.40
2003-2004 $ 0.0550 $ 220.00
2002-2003 $ 0.0460 $ 184.00
2001-2002 $ 0.0370 $ 148.00
2000-2001 $ 0.0280 $ 112.00
1999-2000 $ 0.0190 $ 76.00
1998-1999 $ 0.0100 $ 40.00
1997-1998 $ 0.0100 $ 40.00
1996-1997 $ 0.0100 $ 40.00
ZAAGENDA - 2011 \MD2 Set rates 2011-2012.dec
ATTACHMENT "C-1" WEST COVINA MAINTENANCE DISTRICT NO. 2 10 YEAR FISCAL PROJECTION - RECOMMENDED PERCENT INCREASE 0.00% 0.00% 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 17-18 18-19 19-20 ASSESS. INCOME INTEREST PRIOR YR. BALANCE TOTAL FUNDING OPERATING EXP. FUND TRANSFERS CIP TOTAL COST ENDING BALANCE CASH FLOW OVER/UNDER Assess. per $250K Assessed Valuation Rate per Assesse dV $1aluation 00 $ 118,905 $ 12,000 $ 447,340 $ 578,245 $ 99,440 $ 10,195 $ 90,849 $ 200,484 $ 377,760 $ 49,720 $ 328,040 $ 251.99 $ 0.0630 $ 120,094 $ 10,000 $ 377,760 $ 507,854 $ 102,887 $ 11,195 $ - $ 114,082 $ 393,772 $ 51,444 $ 342,329 $ 251.99 $ 0.0630 $ 121,295 $ 10,270 $ 393,772 $ 525,337 $ 104,945 $ 11,195 $ 100,000 $ 216,140 $ 309,197 52,472 $ 256,725 251.99 $ 0.0630 $ 122,508 $ 7,702 $ 309,197 $ 439,407 $ 107,044 $ 11,195 $ 118,239 $ 321,168 $ S,$22 $ 267,646 $ 251.99 $ 0.0630 $ 123,733 $ 8,029 $ 321,168 $ 452,931 $ 109,185 $ 11,195 $ 100,000 $ 220,380 $ 232,551 4 $92 , $ 177,959 $ 251.99 $ 0.0630 $ 124,970 $ 5,339 $ 232,551 $ 362,860 $ 111,368 $ 11,195 $ $ 122,563 $ 240,297 $ 55,684 $ 184,613 $ 251.99 $ 0.0630 $ 126,220 $ 5,538 $ 240,297 $ 372,055 $ 113,596 $ 11,195 $ - $ 124,791 $ 247,265 $ 56,798 $ 190,467 $ 251.99 $ 0.0630 $ 127,482 $ 5,714 $ 247,265 $ 380,461 $ 115,867 $ 11,195 $ $ 127,062 $ 253,399 57,934 $ 195,465 251.99 $ 0.0630 $ 128,757 $ 5,864 $ 253,399 $ 388,020 $ 118,185 $ 11,195 $ - $ 129,380 $ 258,640 $ 59,092 $ 199,547 $ 251.99 $ 0.0630 $ 130,045 $ 5,986 $ 258,640 $ 394,671 $ 120,549 $ 11,195 $ - $ 131,744 $ 262,927 $ 60,274 $ 202,653 $ 251.99 $ 0.0630 $ 131,345 $ 6,080 $ 262,927 $ 400,352 $ 122,959 $ 9,002 $ 50,000 $ 181,962 $ 218,390 $ 61,480 $ 156,911 $ 251.99 $ 0.0630 ASSUMPTIONS: A) Interest is 3% of the previous year ending balance B) 2% increase in maintenance cost each year due to inflation C) 1% increase in assessed valuation each year DEFINITIONS: CASH FLOW: Amount needed to assure that the district operates in a net positive cash flow position throughout the year to account for the fact that the revenues from the levy of assessments is 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 "C-2" WEST COVINA MAINTENANCE DISTRICT NO. 10 YEAR FISCAL PROJECTION PERCENT INCREASE 0.00% 2.00% 2.00% 2.000/o 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 17-18 18-19 19-20 ASSESS. INCOME $ 118,905 $ 122,496 $ 126,195 $ 130,006 $ 133,933 $ 137,977 $ 142,144 $ 146,437 $ 150,859 $ 155,415 $ 160,109 INTEREST $ 12,000 $ 10,000 - $ 10,342 7,923 $ 8,482 $ 6,111 6,724 $ 7,413 $ 8,183 $ 9,038 $ 9,984 PRIOR YR. BALANCE $ 447,340 $ 377,760 $ 396,174 $ 316,571 $ 336,262 $ 258,297 $ 279,823 $ 303,901 $ 330,688 $ 360,351 $ 393,060 TOTAL FUNDING $ 578,245 $ 510,256 $ 532,711 $ 454,501 $ 478,677 $ 402,386 $ 428,691 $ 457,751 $ 489,730 $ 524,804 $ 563,153 OPERATING EXP. $ 99,440 $ 102,887 $ 104,945 $ 107,044 $ 109,185 $ 111,368 $ 113,596 $ 115,867 $ 118,185 $ 120,549 $ 122,959 FUND TRANSFERS $ 10,195 11,195 11,195 $ 11,195 $ 11,195 $ 11,195 $ 11,195 $ 11,195 $ 11,195 $ 11,195 $ 2 CIP $ 90,849 $ - $ 100,000 $ 100,000 $ - $ $ - $ - $ TOTAL COST $ 200,464 114,082 $ 216,140 5 118,239 $ 220,380 $ 122,563 $ 124,791 $ 127,062 $ 129,380 $ 131,744 $ 131,962 ENDING BALANCE $ 377,760 $ 396,174 $ 316,571 $ 336,262 $ 258,297 $ 279,823 $ 303,901 $ 330,688 $ 360,351 $ 393,060 $ 431,191 CASH FLOW $ 49,720 51,444 $ 52,472 $ 53,522 $ 54,592 $ 55,684 $ 56,798 $ 57,934 $ 59,092 $ 60,274 $ 61,480 OVER/UNDER $ 328,040 $ 344,730 $ 264,099 $ 282,740 $ 203,705 $ 224,139 $ 247,103 $ 272,755 $ 301,258 $ 332,786 $ 369,711 Assess. per $250K Assessed Valuation $ 251.99 $ 257.03 $ 262.17 $ 267.41 $ 272.76 $ 278.22 $ 283.78 $ 289.46 $ 295.25 $ 301.15 $ 307.17 Rate per Assesse dV $1aluation 00 $ 0.0630 $ 0.0643 $ 0.0655 $ 0.0669 $ 0.0682 $ 0.0696 $ 0.0709 $ 0.0724 $ 0.0738 $ 0.0753 $ 0.0768 ASSUMPTIONS: A) Interest is 3% of the previous year ending balance B) 2% increase in maintenance cost each year due to inflation C) 1% increase in assessed valuation each year EFINITIONS: CASH FLOW: Amount needed to assure that the district operates in a net positive cash flow position throughout the year to account for the fact that the revenues from the levy of assessments is 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"
CITY OF WEST COVINA
LANDSCAPE MAINTENANCE DISTRICT NO.
BUDGET AND ESTIMATED REVENUE SUMMARY
FOR
FISCAL YEAR 2011-201
Submitted by:
Shannon A. Yauchzee
Public Works Director/City Engineer
Date:
06/02/2011MD 2 2011-2012 Fin
LANDSCAPE MAINTENANCE DISTRICT NO.2
FISCAL YEAR 2011-2012
BUDGET SUMMARY AND RESERVES
I. MAINTENANCE
A. Personnel Services
B. Materials and Services
C. Equipment Outlay
TOTAL MAINTENANCE
II. ENGINEERING & INCIDENTAL
A. Personnel Services
B. Materials and Services
C. Equipment Outlay
$ 46,878
$ 51,914
0
98,792
$ 4,095
0
0
TOTAL ENGINEERING
TOTAL OPERATING BUDGET
III. CAPITAL IMPROVEMENTS
TOTAL CAPITAL BUDGET
IV TRANSFERS OUT
To MD #4
To Citywide Lighting Dist.
$ 4,095
0
$ 10,000
$ 1,195
$ 102,887
TOTAL TRANSFERS OUT
TOTAL OPERATING & CAPITAL BUDGET
V FUND BALANCE
A. Cash Flow
B. Contingency Reserve
$ 114,082
$ 48,866
$ 344,906
TOTAL FUND BALANCE $ 393,772
TOTAL DISTRICT BUDGET $ 507,854
06/08/2011MD 22011-2012 Fin 2
LANDSCAPE MAINTENANCE DISTRICT NO
FISCAL YEAR 2011 -2012
BUDGET DETAIL AND RESERVES
DIRECT MAINTENANCE
A. Personnel Services
1. Full Time Salaries and Benefits $ 46,574
2. Limited Service Salaries 0
3. Overtime $ 304
Sub-Total
B. Materials and Services
I. Maintenance Contracts $ 34,880
2. Utilities $ 8,228
3. Supplies & Reprographic Services $ 1,150
4. Property & Liability Insurance 949
5. Administration & Overhead $ 6,707
Sub-Total
C. Equipment Outlay
1. Data Processing Equipment 8 0
Sub-Total
TOTAL MAINTENANCE
ENGINEERING AND INCIDENTAL
A. Personnel Services 4,095
B. Materials and Services
C. Equip ment Outlay
TOTAL ENGINEERING
TOTAL OPERATING BUDGET
I. CAPITAL IMPROVEMENTS
TOTAL CAPITAL BUDGET
Iv. TRANSFER OUT
Citywide Lighting Dist. $ 1,195
Maintenance Dist. No. 4 $ 10,000
TOTAL TRANSFER OUT
TOTAL OPERATING 8z CAPITAL BUDGET
46,878
51,914
98,792
4,095
102,887
114,082
FUND BALANCE
Cash Flow 49,935
Contingency Reserve $ 343,837
TOTAL $ 393,772
TOTAL DISTRICT BUDGET $ 507,854
MD 2 2011-2W2 Fin
LANDSCAPE MAINTENANCE DISTRICT NO.2
FISCAL YEAR 2011-2012
ESTIMATED REVENUE SUMMARY
I. Assessment Income (Net)
II. Projected Interest
TOTAL ESTIMATED REVENUES
III. Revised Projected Fund Balance
TOTAL FUNDS AVAILABLE
120,094
10,000
130,094
377,760
507,854
ASSESSMENT RATES ARE PROPOSED AS FOLLOWS:
ASSESSMENT RATE:
$ 0.0630 per hundred dollars of assessed valuation
ASSESSED VALUATION:
Los Angeles County Assessor's Roll
Secured Valuation:
Unsecured Valuation:
189,124,962
1,500,434
TOTAL ASSESSED VALUATION $ 190,625,396
GROSS INCOME
Tax Rate x Total assessed value = $0.0630 / $100 ) x $ 190,625,396 = $ 120,094
4
06/08/2011MD 22011-2012 Fin
LANDSCAPE MAINTENANCE DISTRICT NO.2
FISCAL YEAR 2011-2012
REVISED PROJECTED RESERVE (FY 2010-2011)
I. Fund Balance as of June 30, 2010 447,340
Projected Revenue for Fiscal Year 2010-2011 118,905
Projected Interest Income 12,000
IV. Appropriations for Operating and
Capital for Fiscal Year 2010-2011 $ (200,485)
REVISED PROJECTED FUND BALANCE $ 377,760
JUNE 30, 2010
06/08/2011MD 22011-2012 Fin
Service Contracts 34% Admin. & Overhead 7% Personnel Services 49% Liability Ins 10/0 t *****. „i 41I'Vt,..eLAgt& *" Tet9 r4741 VI -.4 • 4 A. 'It 44A004. •••• • • *". ***++ :*.****. *It 4 10-4.4444: 000:44.4" ***••*•. **-*- -*++ ATTACHMENT "E" LANDSCAPE MAINTENANCE DISTRICT NO. 2 FISCAL YEAR 2010-2011 Supplies 10/0 Utilities 80/0
ATTACHMENT "F"
RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
WEST COVINA, CALIFORNIA, SETTING THE AMOUNT OF
FUNDS NECESSARY TO BE RAISED FOR WEST COVINA
LANDSCAPE MAINTENANCE DISTRICT NO. 2 AND FIXING
THE TAX RATE FOR SAID MAINTENANCE DISTRICT FOR
THE FISCAL YEAR BEGINNING JULY 1,2011
The City Council of the City of West Covina, California, does hereby resolve as
follows:
SECTION 1. As applicable, the tax levied on the real property is exempt
from the application of Article XIII A, Section 1(A) and Article XIII C of the
Constitution of the State of California and is levied for the benefit of the residents of the
District.
SECTION 2. The amount of funds necessary to be raised by the tax,
upon the assessable property within Maintenance District No. 2, City of West Covina, for
the current Fiscal Year beginning July 1, 2011 is hereby fixed as follows:
For the cost of maintaining and operating the open space, improvements
and facilities thereon within the Maintenance District No. 2, City of West Covina:
$114,082.
SECTION 3. For the purpose of raising the funding necessary to be
raised by the tax upon the assessable property within Maintenance District No. 2, City of
West Covina as revenue to maintain and operate the open space, improvements and
facilities within the said Maintenance District, the rate is hereby fixed and taxes are
hereby set on all assessable real property in the said Maintenance District for the Fiscal
Year beginning July 1, 2011, at the rate of 6.30 cents per one hundred dollars of assessed
value of said assessable real property as assessed by the County Assessor and equalized
by the Assessment Appeals Board of the County of Los Angeles and with respect to
certain property as assessed by the State Board of Equalization and equalized by said
Board as follows:
Estimated Assessed Value of Land within Entire District $190,625,396
Benefit Tax Rate $0.0630 per one hundred dollars
No separate tax is being levied upon the assessable property within any
zone in Maintenance District No. 2 for the Fiscal Year beginning July 1, 2011, and no
funds are being raised to finance special services within any such zone.
APPROVED AND ADOPTED this 21 g day of June 201
Mayor Steve Herfert
ATTEST:
City Clerk Laurie Carrico
ZARESOLUT1ON - 2011 \ MD2 Reso 2011-2012.doc
ATTACHMENT "F"
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 21 g 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 -201 11MD2 Rea) 2011-20 I 2.doe