5-18-2021 AGENDA ITEM NO.11 - RENEWEAL OF LMD NO.7 - ORDERING OF ENGINEER'S REPORT AND PRELIMINARY APPROVAL OF THE ENGINEER'S REPORTAGENDA ITEM NO. 11
AGENDA STAFF REPORT
City of West Covina I Office of the City Manager
DATE: May 18, 2021
TO: Mayor and City Council
FROM: David Carmany
City Manager
SUBJECT: CONSIDERATION OF RENEWAL OF LANDSCAPE MAINTENANCE DISTRICT NO. 7 —
ORDERING OF ENGINEER'S REPORT AND PRELIMINARY APPROVAL OF THE
ENGINEER'S REPORT
RECOMMENDATION:
It is recommended that the City Council take the following actions:
1. Adopt the following resolution:
RESOLUTION NO.2021-45 — A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
WEST COVINA, CALIFORNIA, ORDERING THE PREPARATION AND FILING OF A REPORT
REGARDING THE FISCAL YEAR 2021-22 ASSESSMENT TO BE LEVIED IN CONNECTION
WITH LANDSCAPE MAINTENANCE DISTRICT NO. 7
2. Following the adoption of Resolution No. 2021-45, adopt the following resolution:
RESOLUTION NO. 2021-46 — A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
WEST COVINA, CALIFORNIA, PRELIMINARILY APPROVING THE ENGINEER'S REPORT
FOR LANDSCAPE MAINTENANCE DISTRICT NO. 7, DECLARING ITS INTENTION TO LEVY
AND COLLECT ASSESSMENTS WITHIN SAID DISTRICT FOR FISCAL YEAR 2021-22 AND
SETTING A PUBLIC HEARING REGARDING SUCH ASSESSMENTS
BACKGROUND:
Landscape Maintenance District No. 7 (LMD7) was established in 1980 at the request of the owner of the
development in lieu of forming a Homeowners' Association. LMD7 is generally located in the easterly end of the
City. The funds collected by the district are used to maintain landscaping and irrigation in public open space areas
within its boundaries. Currently, LMD7 contains 372 improved and 8 unimproved single-family residential parcels.
When development is 100 percent complete, LMD7 will contain 380 developed single residential parcels, 25 acres
of landscaped and irrigated area, and 105 acres of natural area.
DISCUSSION:
The initial step of the renewal process is to adopt Resolution No. 2021-45, ordering the Engineer's Report.
This report has been completed and includes plans and specifications for improvements, estimated costs,
assessment diagrams, and assessments spread to cover the estimated costs. The report was prepared in accordance
with the Act.
The next step in the renewal process is the preliminary approval of the Engineer's Report and adoption of the
Resolution of Intention concerning the levy and collection of assessments for LMD7. Staff is also recommending
setting a public hearing date of June 1, 2021 as required in the Landscaping and Lighting Act of 1972. At the
public hearing, the City Council will consider all written and oral comments regarding the level of assessments, and
the maintenance and capital improvement work proposed for LMD7. The renewal process requires that a public
notice be posted and published in a locally circulated newspaper, but does not require notices be mailed to each
resident. 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 the City Council.
At this time, staff is recommending that the assessment rates be maintained at their current levels for Fiscal Year
2021-2022. The annual assessment rates for LMD7 will be maintained at $464.06 per developed lot and $139.22
per undeveloped lot.
It should be noted that, for various reasons, rates have increased very incrementally since 2009, which has led to
reduced services and increased concerns by residents. Maintenance districts are supposed to be self -funded and not
rely on a general fund contribution. The City intends to conduct a full study of what a proper level of
maintenance would cost and explore how to set the assessment rate accordingly. If rates are to be increased, the
City will be required to comply with the requirements of Proposition 218.
LEGAL REVIEW:
The City Attorney's Office has reviewed and approved the resolutions as to form.
OPTIONS:
The City Council has the following options:
1. Maintain the assessment rates at their current levels. The attached "10-Year Fiscal Projection" shows rates
being maintained at their current levels and the reserve levels over the next 10 years. Staff is recommending
this option.
2. Reduce the assessment rates; LMD7's reserves will be depleted at a faster pace requiring the City's General
Fund to subsidize the district.
3. Increase the assessment rates above the previously approved maximum amounts. LMD7 would need to
comply with the mail ballot provision of Proposition 218. In Fiscal Year 2009-2010, a mail ballot election on
a proposed increase of the assessment rates was processed and not approved by the property owners.
4. To not renew the district. If the City Council does not wish to continue the districts and wishes to fund the
districts from the General Fund, the resolutions are not necessary.
Prepared by: Michael Ackerman, PE, City Engineer
Fiscal Impact
FISCAL IMPACT:
The Fiscal Year 2021-22 Engineer's Report for LMD7 recommends that the assessment rates be maintained at
their current levels. The annual assessment rates for LMD7 will be maintained at $464.06 per improved lot and
$139.22 per unimproved lot. The total projected revenue is $174,388 including interest. Including the $321,982
balance from the previous year, the total funds available is $496,370.
The preliminary operating budget for LMD7 for FY 2021-22 is $178,205 which is an increase of 2% compared to
the approved/amended budget for FY 2020-21. The proposed operating budget funds not only the regular
landscape maintenance but is also able to fund some improvements, such as irrigation system improvements and
enhancement to existing landscaping.
Upon 100% completion of the development within LMD7, there will be 380 improved residential lots. The
district's open space area will increase to 25 acres of landscaped and irrigated areas and 105 acres of open space,
for a total of 130 acres. The total cost to maintain these areas is estimated at $200,000.
For FY 2021-22, LMD7 annual administration cost is $2,345 and will be paid from Account No.
187.71.4133.6110.
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.
Attachments
Attachment No. 1 - 15 Year Rate History
Attachment No. 2 - LMD No. 7 Engineer's Report
Attachment No. 3 - 10 Year Fiscal Projection
Attachment No. 4 - Resolution No. 2021-45
Attachment No. 5 - Resolution No. 2021-46
CITY COUNCIL GOALS & OBJECTIVES: Enhance City Facilities and Infrastructure
Enhance the City Image and Effectiveness
ATTACHMENT NO. 1
West Covina
Landscape Maintenance District No.7
15 Rate History
Fiscal Year
improve.
Lot
-.
Per Lot
2021/22
Proposed
$464.06
$139.22
2020/21
$464.06
$139.22
2019/20
$464.06
$139.22
2018/19
$464.06
$139.22
2017/18
$464.06
$139.22
2016/17
$464.06
$139.22
2015/16
$454.96
$136.49
2014/15
$454.96
$136.49
2013/14
$454.96
$136.49
2012/13
$446.04
$133.81
2011/12
$437.29
$131.19
2010/11
$428.72
$128.62
2009/10
$389.74
$116.92
2008/09
$354.31
$106.29
2007/08
$322.10
$96.63
ATTACHMENT NO.2
City of West Covina
Landscape Maintenance
District No, 7
FISCALYEAR 2021/2022 ENGINEER'S REPORT
Intent Meeting: May 18, 2021
Public Hearing: June 1, 2021
k-. N \
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ENGINEER'S REPORT AFFIDAVIT
Landscape Maintenance District No. 7
City of West Covina
County of Los Angeles, State of California
This Report describes the District including the improvements, budgets, parcels and
assessments to be levied for FY 2021 /2022 as they existed at the time of the passage of
the Resolution of Intention. Reference is hereby made to the Los Angeles County
Assessor's maps for a detailed description of the lines and dimensions of parcels within
the District. The undersigned respectfully submits the enclosed Report as directed by the
City Council.
Dated this
day of 12021.
Willdan Financial Services
Assessment Engineer
On Behalf of the City of West Covina
M
Chonney Gano, Project Manager
District Administration Services
Tyrone Peter
PE#C81888
TABLE OF CONTENTS
OVERVIEW...............................................................................................................................1
PROPOSITION 218 COMPLIANCE......................................................................................3
I. PLANS AND SPECIFICATIONS....................................................................................5
A. DESCRIPTION OF WORK...........................................................................................................5
B. IMPROVEMENTS AUTHORIZED BY THE 1972 ACT.....................................................5
C. DESCRIPTION OF IMPROVEMENTS AND SERVICES.................................................7
II. METHOD OF APPORTIONMENT..................................................................................8
A. BENEFIT ANALYSIS......................................................................................................................8
B. ASSESSMENT METHODOLOGY............................................................................................8
III. ESTIMATE OF COSTS..................................................................................................11
A. CAPITAL IMPROVEMENT PROJECT FUND ..................................................... ii
B. PROPOSED INCREASE SCOPE OF WORK AND SUMMARY OF COSTS ...... 12
IV. BOUNDARY MAP..........................................................................................................14
V. ASSESSMENT ROLL....................................................................................................16
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OVERVIEW
The City of West Covina ("City"), annually levies and collects assessments in order
to provide and maintain facilities, improvements and services within Landscape
Maintenance District No. 7 ("District"). The District was established in 1980 pursuant
to the Landscaping and Lighting Act of 1972, Part 2 of Division 15 of the Streets and
Highways Code (" 1972 Act"). The District was created at the request of the owner of
the development in lieu of forming a Homeowner's Association. The funds collected
by the District are used to maintain landscaping and irrigation in public open space
areas within its boundaries.
The Engineer's Report ("Report") has been prepared pursuant to Chapter 1, Article 4
and Chapter 3 of the 1972 Act, and presented to the City Council for their
consideration and approval of the proposed improvements and services to be
provided within the District and the levy and collection of annual assessments for
Fiscal Year ("FY") 2021/2022.
This Report describes the District, the improvements and the proposed assessments
to be levied against properties in connection with the benefits the properties will
receive from the maintenance and servicing of the District improvements for FY
2021/2022. The annual assessments to be levied on properties within the District
provide a funding source for the continued operation and maintenance of local
landscape improvements installed in connection with the development of properties
within the District. Each fiscal year, the City establishes the District's assessments
based on an estimate of the costs to maintain, operate and service the landscape
improvements and based upon available revenues including fund balances, City
contributions and assessment limits. The costs of the improvements and the
proposed annual assessments budgeted and assessed against properties within the
District may include: the estimated expenditures for regular annual maintenance and
repairs; incidental expenditures related to the operation and administration of the
District; deficits or surpluses from prior years; revenues from other sources; and the
collection of adequate funds for operational reserves or periodic expenditures
including installments collected for long-term improvement projects. Each parcel is
assessed proportionately for only those improvements, services and expenses for
which the parcel will receive special benefit.
The word "parcel," for the purposes of this Report, refers to an individual property
assigned its own Assessor's Parcel Number ("APN") by the Los Angeles County
("County") Assessor's Office. The County Auditor/Controller uses Assessor's Parcel
Numbers and specific Fund Numbers to identify properties to be assessed on the tax
roll for the special benefit assessments.
At a noticed annual Public Hearing, the City Council will accept all public comments
and written protests regarding the District and the annual levy of assessments. Upon
conclusion of the Public Hearing, the City Council will consider all public comments
and review the Report. The City Council may order amendments to the Report or
confirm the Report as submitted. Following final approval of the Report and
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confirmation of the assessments the Council will, by Resolution, order the
improvements to be made and confirm the levy and collection of assessments
pursuant to the 1972 Act. The assessments as approved will be submitted to the
County Auditor/Controller to be included on the property tax roll for each parcel.
While the budgets outlined in this Report reflect the estimated costs necessary to
fully and adequately provide for the maintenance and operation of the improvements
within the District, many of these estimated costs and associated services cannot be
funded by the current assessment revenues and contributions from the City. To fully
fund the improvements, it will be necessary to increase assessment revenues which
will require the support of the property owners for new or increased assessments
through a ballot proceeding conducted under the provisions of the California
Constitution Article XIIID. Although such proceedings are not being conducted this
fiscal year and the proposed District assessments for FY 2021/2022 are not being
increased over the assessments levied in the prior fiscal year, such assessment
increases may be considered in the future due to the rising costs associated with the
District improvements.
As required by the 1972 Act, this Engineer's Report describes the improvements to
be operated, maintained and serviced by the District, an estimated budget for the
District improvements, and the proposed assessments to be levied upon each
assessable lot or parcel within the District for FY 2021 /2022.
This Report consists of five (5) parts:
Part I
Plans and Specifications: A general description of the District and the
improvements for which parcels are assessed. The proposed assessments as
outlined in this Report are based on the improvements that provide a special benefit
to the properties within the District. The plans and specifications contained in this
Report generally describe the nature, location and extent of the improvements.
Part II
Method of Apportionment: A description of how the proportionate amount of the
assessments is to be charged in proportion to the benefits received by each lot or
parcel within the boundaries of the District.
Part III
Estimate of Costs: An estimate of the annual costs to properly operate, maintain,
and service the landscape improvements and appurtenant facilities. This budget
includes an estimate of the maintenance costs and incidental expenses including, but
not limited to: labor, materials, equipment and administration expenses as well as the
collection of appropriate funding necessary to properly support the improvements.
Not all services and costs identified in these budgets can be supported by the current
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assessment revenues and City contributions, and as such, City staff shall make the
determination of which services and activities shall be provided based on available
revenues.
Part IV
Boundary Map: A diagram showing the boundaries of the District is provided in this
Report and includes all parcels determined to receive special benefits from the
improvements. Parcel identification, the lines and dimensions of each lot, parcel and
subdivision of land within the District are shown on the Los Angeles County
Assessor's Parcel Maps, and shall include any subsequent lot line adjustments or
parcel changes therein. Reference is hereby made to the Los Angeles County
Assessor's Parcel Maps for a detailed description of the lines and dimensions of each
lot and parcel of land within the District. A diagram showing the overall boundaries of
the District is on file with the City Clerk and the Office of the City Engineer, and by
reference is made part of this Report.
Part V
Assessment Roll: A listing of the assessment amount associated with each parcel
within the District. The assessments presented herein are unchanged from the
previous fiscal year.
PROPOSITION 218 COMPLIANCE
On November 5, 1996, California voters approved Proposition 218 ("Proposition").
This Proposition amended the California Constitution and was the latest in a series of
initiatives reducing the revenue -raising discretion of California local governments. The
provisions of the Proposition, now California Constitution Articles XIII C and XIII D,
can be summarized in four general areas:
1. Strengthens the general and special tax provisions of Proposition 13 and
Proposition 62.
2. Extends the initiative process to all local taxes, assessments, fees, and charges.
3. Adds substantive and procedural requirements to assessments.
4. Adds substantive and procedural requirements to property -related fees and
charges.
Proposition 218 required that beginning July 1, 1997, all new and existing
assessments (with some exceptions) must conform to new substantive and procedural
requirements. However, certain assessments are exempted from these requirements
until they are increased.
Generally, these exemptions include:
2021 /2022 City of West Covina -Landscape Maintenance District No. 7 Page 3
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(a) Assessments used exclusively to fund sidewalks, streets, sewers, water,
flood control, drainage systems, or vector control.
(b) Assessments imposed pursuant to a petition signed by the persons owning
all of the parcels subject to the assessment at the time the assessment is
initially imposed.
(c) Assessments used exclusively for bond repayments, the cessation of which
would violate the Contract Impairment Clause of the U.S. Constitution.
(d) Assessments previously approved by a majority of voters.
Since the District and the related assessments were established in 1980 at the request
of the owner of the property, the initial District assessments were not required to
conform with the Article XIIID substantive and procedural requirements. The
maximum assessment rate for the District at the time of the passage of Prop 218 was
$644.00 previously approved by the City Council in FY 1985-86. Any subsequent
increases in the assessments above the maximum rate previously approved by City
Council prior to November 5, 1996 will be subject to the procedures and approval
process of Section 4 of Article XIIID of the California Constitution.
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/, PLANS AND SPECIFICATIONS
A. DESCRIPTION OF WORK
The existing facilities to be maintained and serviced include public open spaces and
manufactured slopes and appurtenant facilities. Upon completion, the District will
contain 25 acres of landscaped and irrigated areas and 105 acres of natural open
space.
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. 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 the
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, 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 or operation of landscaping or appurtenant facilities.
B. IMPROVEMENTS AUTHORIZED BY THE 1972 ACT
As applicable or may be applicable to this District, the 1972 Act defines improvements
to mean one or any combination of the following:
• The installation or planting of landscaping.
• The installation or construction of statuary, fountains, and other ornamental
structures and facilities.
• The installation or construction of public lighting facilities.
• The installation or construction of any facilities which are appurtenant to any
of the foregoing or which are necessary or convenient for the maintenance or
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servicing thereof, including, but not limited to, grading, clearing, removal of
debris, the installation or construction of curbs, gutters, walls, sidewalks, or
paving, or water, irrigation, drainage, or electrical facilities.
• The maintenance or servicing, or both, of any of the foregoing.
• The acquisition of any existing improvement otherwise authorized pursuant to
this section.
Incidental expenses associated with the improvements including, but not limited to:
• The cost of preparation of the report, including plans, specifications,
estimates, diagram, and assessment;
• The costs of printing, advertising, and the publishing, posting and mailing of
notices;
• Compensation payable to the County for collection of assessments;
• Compensation of any engineer or attorney employed to render services;
• Any other expenses incidental to the construction, installation, or
maintenance and servicing of the improvements;
• Any expenses incidental to the issuance of bonds or notes pursuant to
Section 22662.5.
• Costs associated with any elections held for the approval of a new or
increased assessment.
The 1972 Act defines "Maintain" or "maintenance" to mean furnishing of services and
materials for the ordinary and usual maintenance, operation, and servicing of any
improvement, including:
• Repair, removal, or replacement of all or any part of any improvement
• Providing for the life, growth, health, and beauty of landscaping, including
cultivation, irrigation, trimming, spraying, fertilizing, or treating for disease or
injury.
• The removal of trimmings, rubbish, debris, and other solid waste.
• The cleaning, sandblasting, and painting of walls and other improvements to
remove or cover graffiti.
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C. DESCRIPTION OF IMPROVEMENTS AND SERVICES
The District is generally located in the easterly end of the City on the north -facing
slopes of the San Jose Hills. Currently, the District contains 372 improved single-
family residential parcels, approximately 19.5 acres of landscaped and irrigated areas
and 92 acres of natural area that is only 98 percent developed. When development
is 100 percent complete, the District will contain 380 improved single residential
parcels, 25 acres of landscaped and irrigated area, and 105 acres of natural area.
The detailed plans and specifications of the District Improvements are on file in the
office of the City Public Works Department and by reference are made part of this
Report.
Ongoing and Completed Capital Improvement Projects:
FY 2021/2022, improvements include:
There are currently no ongoing and completed capital improvement
projects for FY 2021/2022.
FY 2020/2021, improvements included:
There are currently no ongoing and completed capital improvement
projects for FY 2020/2021.
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A METHOD OF APPORTIONMENT
The 1972 Act permits the establishment of assessment Districts by agencies for the
purpose of providing certain public improvements which include the construction,
maintenance, and servicing of public lights, landscaping and appurtenant facilities.
The 1972 Act further requires that the cost of these improvements be levied according
to benefit rather than assessed value:
"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.
Pursuant to Section 22574 of the 1972 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." Thus, the 1972 Act requires the levy of a true
"assessment" rather than a "special tax."
The 1972 Act also permits certain parcels to be exempt from assessment. Excluded
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-way, all public parks, public greenbelts and parkways,
and all public property being used for public purposes. However, per Proposition 218,
any publicly owned property that benefits from District improvements shall be assessed
its proportional share of District costs.
The formula used for calculating assessments in this District reflects the composition
of the parcels, and the improvements and services provided in order to fairly
apportion the costs based on estimated benefit to each parcel.
A. BENEFIT ANALYSIS
All parcels in the District 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 or undeveloped land is assessed per dwelling unit.
B. ASSESSMENT METHODOLOGY
The method of apportionment utilized for the District calculates the receipt of special
benefit from the respective improvements based on the actual or proposed land use
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of the parcels. The special benefit received by each lot or parcel is equated to the
overall land use of the parcel based on the parcel's actual land use or proposed
planned development, and is reliant upon the special benefit received from the
improvements planned or existing within the District.
To identify and determine the special benefit to be received by each parcel, it is
necessary to consider the entire scope of the improvements. The costs associated
with the improvements shall be fairly distributed among the parcels based upon the
special benefit received by each parcel. Additionally, in compliance with Section 4 of
Article XIIID, each parcel's assessment may not exceed the reasonable cost of the
proportional special benefit conferred to that parcel. The benefit formula used to
determine the assessment obligation is therefore based upon both the improvements
that benefit the parcels of the District as well as the proposed land use of each
property as compared to other parcels that benefit from those specific improvements.
The assessment methodology and assessment rates proposed for FY 2021/2022
determined that all parcels receive special benefit for the landscape maintenance. In
order to continue to provide the current level of maintenance services, the budget is
proposed to be maintained at the FY 2020/2021 level. Therefore, the assessment
rates for FY 2021/2022 are not proposed to be increased.
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 8 unimproved parcels.
Zone C2 - All improved parcels within the District. There are 372 improved parcels.
The land -use classification for each parcel has been based on the FY 2020/2021 Los
Angeles County Auditor/Controller's Assessment Roll.
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The following table summarizes the different assessment rates for the different zone
classifications, and compares the proposed assessment with the prior year's
assessment.
City of West Covina
Landscape Maintenance District No. 7
C1 8 $139.22 $139.22 $1,113.76
C2 372 464.06 464.06 172,630.32
TOTAL 380 $173,744.08
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X ESTIMATE OF COSTS
The total estimate of costs for maintenance of the proposed improvements for FY
2021 /2022, as defined under Section 22569 of the 1972 Act, are those as hereinafter
set forth. Said cost estimates include the total District costs for constructing or
installing any proposed improvements and for maintenance and servicing the existing
improvements including incidental expenses; the amount of any surplus or deficit in
the maintenance fund to be carried over from the previous year; any annual
installments to be collected over more than a single year; as well as the amount of
any contributions to be made from any other sources.
A. CAPITAL IMPROVEMENT PROJECT FUND
For FY 2021 /2022, there are no capital improvements.
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B. PROPOSED INCREASE SCOPE OF WORK AND SUMMARY OF COSTS
The City's budget for the operation and services costs detail the estimated costs and
fund balances for FY 2021/2022 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.
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.
Also located in the budget is the proposed increase in scope of maintenance work at
optimal levels. The District contains landscaped hillside slopes vegetated with plants,
shrubbery, and trees. The current scope of work for the operations, maintenance,
and care of these areas include 3 to 5-feet of fire clearing at the tops and toes of
slopes and irrigation maintenance and repairs. Increased scope of work is
recommended to include tree trimming of the hillside trees on a trimming cycle and
landscape maintenance including trash removal and clearing of the hillside plants
and shrubbery. It is estimated that the budget required for the increased and
landscaping maintenance and operations scope is approximately double the existing
budget.
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Existing Maintenance
Optimal Maintenance
Previous Fiscal Year Fund Balance
$321,982
$321,982
Revenues
Assessment Income (Total Balance to Levy)
$173,744
$173,744
Interest
644
644
Total Projected Revenue
$174,388
$174,388
Expenditures
Direct Maintenance
Personnel Services
$41,258
$82,516
Materials and Services
Maintenance Contracts
62,978
125,956
Uilities (electricity & water)
34,200
68,400
Maintenance Supplies
0
0
Property & Liability Insurance
3,572
7,144
Administration & Overhead
23,710
47,420
Total Direct Maintenance
$165,718
$331,436
Engineering & Incidental
Personnel Services
$7,487
$14,974
NPDES
5,000
10,000
Equipment Outlay
0
0
Total Engineering & Incidental
12,487
24,974
Capital Improvement (t1
$0
$0
Total Operating and Capital Budget $178,205 $356,410
Ending Fund Balance $318,165 $139,960
(1) See Capital Improvement Project Fund Section III. A
Note: The variance in existing and optimal maintenance is the amount needed to support the recommended increased scope of work for
Landscape Maintenance District 7. The recommended scope of work includes the tree trimming of the hillside trees on a trimming cycle,
and landscape maintenance including trash removal and clearing of the hillside plants and shrubbery.
2021 /2022 City of West Covina -Landscape Maintenance District No. 7 Page 13
11Y W I LLDAN
/K BOUNDARY MAP
A diagram showing the exterior boundaries of the District, boundaries of any zone
within the 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 shown on the Los Angeles County Assessor's
parcel maps for the current year are incorporated by reference and made part of this
Report.
2021 /2022 City of West Covina -Landscape Maintenance District No. 7 Page 14
11Y W I LLDAN
CITY OF WEST COVINA
2021 /2022 City of West Covina -Landscape Maintenance District No. 7 Page 15
W WILLDAN
V, ASSESSMENT ROLL
Parcel identification for each lot or parcel within the District shall be the parcel as
shown on the Los Angeles County Secured Roll for the year in which this Report is
prepared and reflective of the Assessor's Parcel Maps. A listing of the proposed lots
and parcels to be assessed within this District along with the assessment amounts
shall be submitted to the City Clerk, under a separate cover, and by reference is
made part of this Report.
2021 /2022 City of West Covina -Landscape Maintenance District No. 7 Page 16
ATTACHMENT NO. 3
West Covina Landscape Maintenance District No. 7
10 Year Fiscal Projection
Assessment Income
$173,744
$173,744
$173,744
$173,744
$173,744
$173,744
$173,744
$173,744
$173,744
$173,744
Interest (1)
644
636
622
599
570
533
488
435
374
305
Prior Year Balance
321,982
318,165
310,776
299,737
284,968
266,387
243,910
217,454
186,932
152,254
Total Funding
$496,370
$492,545
$485,142
$474,080
$459,282
$440,663
$418,142
$391,633
$361,049
$326,302
Maintenance Costs (2)
178,205
181,769
185,405
189,113
192,895
196,753
200,688
204,702
208,796
212,972
Capital Improvements
0
Total Cost
$178,205
$181,769
$185,405
$189,113
$192,895
$196,753
$200,688
$204,702
$208,796
$212,972
Ending Balance
$318,165
$310,776
$299,737
$284,968
$266,387
$243,910
$217,454
$186,932
$152,254
$113,330
Developed Lot Rate
$464.06
$464.06
$464.06
$464.06
$464.06
$464.06
$464.06
$464.06
$464.06
$464.06
Undeveloped Lot Rate
$139.22
$139.22
$139.22
$139.22
$139.22
$139.22
$139.22
$139.22
$139.22
$139.22
Notes: (1) Interest is 0.4 % of one-half of the previous year ending balance
(2) 2 % increase in maintenance cost each year due to inflation.
ATTACHMENT NO.4
"I, RTITR 11 Y [li0MCCM-113$CP
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF WEST COVINA, CALIFORNIA, ORDERING THE
PREPARATION AND FILING OF A REPORT REGARDING
THE FISCAL YEAR 2021-22 ASSESSMENT TO BE LEVIED
IN CONNECTION WITH LANDSCAPE MAINTENANCE
DISTRICT NO.7
WHEREAS, the City's Landscape Maintenance District No. 7 (the "District') has been
established pursuant to the Landscaping and Lighting Act of 1972 (Streets and Highways Code
Section 22500 et seq.) (the "Act') to fund the maintenance and servicing of certain public
landscaping and appurtenant facilities in the City; and
WHEREAS, in connection with the District, the City annually levies an assessment against
real property; and
WHEREAS, the City Council desires to initiate proceedings to levy the assessment for
Fiscal Year 2021-22 in connection with the District; and
WHEREAS, no increased assessments, new improvements nor substantial changes in
existing improvements within the District are proposed.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF WEST COVINA,
CALIFORNIA DOES HEREBY RESOLVE AS FOLLOWS:
SECTION 1. The above recitals are true and correct.
SECTION 2. The City Council orders Willdan Financial Services, as assessment engineer,
to prepare and file with the City Clerk a report on the assessment in connection with the District
for Fiscal Year 2021-22. Such report shall include all information required by Section 22565 et
seq. of the Act.
SECTION 3. The City Clerk shall certify to the adoption of this resolution and shall enter
the same in the book of original resolutions and it shall become effective nr rnediately.
APPROVED AND ADOPTED this 18th day of May, 2021.
Letty Lopez-Viado
Mayor
APPROVED AS TO FORM
Thomas P. Duarte
City Attorney
ATTEST
Lisa Sherrick
Assistant City Clerk
I, LISA SBERRICK, ASSISTANT CITY CLERK of the City of West Covina, California,
do hereby certify that the foregoing Resolution No. 2021-45 was duly adopted by the City Council
of the City of West Covina, California, at a regular meeting thereof held on the 18th day of May,
2021, by the following vote of the City Council:
AYES:
NOES:
ABSENT:
ABSTAIN:
Lisa Sherrick
Assistant City Clerk
ATTACHMENT NO. 5
I�iy.Y1]Sly�l (1]r;■�[Ixily;Qf�
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF WEST COVINA, CALIFORNIA, PRELIMINARILY
APPROVING THE ENGINEER'S REPORT FOR
LANDSCAPE MAINTENANCE DISTRICT NO. 7,
DECLARING ITS INTENTION TO LEVY AND COLLECT
ASSESSMENTS WITHIN SAID DISTRICT FOR FISCAL
YEAR 2021-22 AND SETTING A PUBLIC HEARING
REGARDING SUCH ASSESSMENTS
WHEREAS, the City's Landscape Maintenance District No. 7 (the "District') has been
established pursuant to the Landscaping and Lighting Act of 1972 (Streets and Highways Code
Section 22500 et seq.) (the "Act') to fund the maintenance and servicing of certain public landscaping
and appurtenant facilities in the City; and
WHEREAS, in connection with the District, the City annually levies an assessment against
real property; and
WHEREAS, by its Resolution No.2021-45, adopted May 18, 2021, the City Council directed
Willdan Financial Services, as assessment engineer (the "Engineer'), to prepare and file a report
regarding the District; and
WHEREAS, the Engineer has Sled said report, entitled "City of West Covina, Landscape
Maintenance District No. 7, Fiscal Year 2021/2022 Engineer's Report" (the "Report') and the Report
is on file and available for public inspection in the Office of the City Clerk and is incorporated herein
by reference; and
WHEREAS, the City Council desires to continue with proceedings to levy the assessment in
connection with the District for Fiscal Year 2021-22 as described in the Report.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF WEST COVINA,
CALIFORNIA DOES HEREBY RESOLVE AS FOLLOWS:
SECTION 1. The Report is preliminarily approved.
SECTION 2. The City Council declares its intention to levy and collect assessments within
the District for Fiscal Year 2021-22 and notes that:
(a) The distinctive name of the District is the "City of West Covina Landscape
Maintenance District No. 7."
(b) The District is generally located in the easterly part of the City on the north -facing
slopes of the San Jose His.
(c) The existing and proposed improvements are generally described as to landscaping
and irrigation in public open space areas within the boundaries of the District. No
substantial changes are proposed to the nature of the improvements.
(d) Reference is made to the Engineer's Report, on file with the City Clerk, for a full and
detailed description of the improvements, the boundaries of the assessment district and
any zones therein, and the proposed assessments upon assessable lots and parcels of
land within the District.
(e) The rate of this assessment is not proposed to increase from the rate levied in Fiscal
Year 2020-21.
SECTION 3. A public hearing is set for Tuesday, June 1, 2021, at 7:00 p.m. in the City
Council Chambers located at 1444 West Garvey Avenue South in the City of West Covina, to take
the testimony on the issue of whether or not the assessments should be approved.
SECTION 4. The City Clerk shall give notice of said public hearing in the time, form, and
manner as required by law, including but not limited to publication of this resolution in accordance
with Streets and Highways Code Sections 22552 and 22553.
SECTION 5. The City Council finds that the levy and collection of these assessments is
statutorily exempt from the California Environmental Quality Act under § 15273 of the Guidelines,
as none of the proceeds will be used for capital expenses, but will be used instead for operation and
maintenance.
SECTION 6. The City Clerk shall certify to the adoption of this resolution and shall enter
the same in the book of original resolutions and it shall become effective immediately.
APPROVED AND ADOPTED this 18th day of May, 2021.
Thomas P. Duarte
City Attorney
Letty Lopez-Viado
Mayor
ATTEST
Lisa Sherrick
Assistant City Clerk
I, LISA SIIERRICK, ASSISTANT CITY CLERK of the City of West Covina, California, do
hereby certify that the foregoing Resolution No. 2021-46 was duly adopted by the City Council of
the City of West Covina, California, at a regular meeting thereof held on the 18th day of May, 2021,
by the following vote of the City Council:
AYES:
NOES:
ABSENT:
ABSTAIN:
Lisa Sherrick
Assistant City Clerk