5-18-2021 AGENDA ITEM NO.9 - CONSIDERATION OF RENEWAL OF LANDSCAPE MAINTENANCE DISTRICT NO.4 - ORDERING OF ENGINEER'S REPORT AND PRELIMINARY APPROVAL OF THE ENGINEER'S REPORTAGENDA ITEM NO.9
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.4 —
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. 2021-41— 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.4
2. Following adoption of Resolution No. 2020-41, adopt the following resolution:
RESOLUTION NO.2021-42 — A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
WEST COVINA, CALIFORNIA, PRELIMINARILY APPROVING THE ENGINEER'S REPORT
FOR LANDSCAPE MAINTENANCE DISTRICT NO.4, 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. 4 (LMD4) was established in 1975. This district is located in the southeasterly
part of the City. The assessments collected are used to maintain landscaping, irrigation, hardscape (e.g. sidewalks,
walls, etc.), and area lighting on 130 acres of public open space within the boundaries of the district. To encourage
innovative housing types and neighborhood designs and to preserve the ridgelines in the San Jose Hills, this area
was originally developed with relatively narrow street rights -of -way and small lot sizes. The resulting surplus land
was converted to landscaped slope areas and park like "green belt" areas containing walkways, landscaping, and
lighting.
DISCUSSION:
The initial step of the renewal process is to adopt Resolution No. 2021-41, 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 LMD4. 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 LMD4. 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 recommends that the assessment rates be maintained at their current levels for Fiscal Year
2021/2022. The annual assessment rates for LMD4 will be maintained at $348.02 for a single dwelling unit and
$464 for a duplex unit.
It should be noted that, for various reasons, rates have not been increased 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; LMD4'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. LMD4 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 LMD4 recommends that the assessment rates be maintained at
their current levels. The annual assessment rates for LMD4 will be maintained at $348.02 for a single dwelling
unit and $464 for a duplex unit. The projected income from the recommended rates is $1,023,250. In addition,
$9,000 is projected to be received from Landscape Maintenance District No. 2 (LMD2) for costs of maintenance
in an overlap area between LMD2 and LMD4. The total projected revenue is $1,027,678, including $4,428 in
interest. With the $2,213,890 balance from the previous year, the total funds available is $3,250,568.
The preliminary operating budget for LMD4 for FY 2021/22 is $1,056,609, which is an increase of 2% compared
to the approved/amended budget for FY 2020/21. The proposed operating budget funds only the regular landscape
maintenance. Ongoing improvements such as irrigation system improvements, enhancement to existing
landscaping, tree trimming, and other extras are being eliminated to maintain the operating budget within projected
revenues from the capped assessment rates.
For FY 2021/22, LMD4 annual administration cost is $3,992.50 and will be paid from Account No.
184.71.4133.6110.
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, and emergencies.
Attachments
Attachment No. 1 - 15 Year Rate History
Attachment No. 2 - LMD No. 4 Engineer's Report
Attachment No. 3 - 10 Year Fiscal Projection
Attachment No. 4 - Resolution No. 2021-41
Attachment No. 5 - Resolution No. 2021-42
CITY COUNCIL GOALS & OBJECTIVES: Achieve Fiscal Sustainability and Financial Stability
Enhance City Facilities and Infrastructure
ATTACHMENT NO. 1
West Covina
Landscape Maintenance District No.4
15 Rate History
2021/22
Proposed
$464.00
2020/21
$464.00
2019/20
$464.00
2018/19
$464.00
2017/18
$464.00
2016/17
$464.00
2015/16
$464.00
2014/15
$464.00
2013/14
$464.00
2012/13
$464.00
2011/12
$464.00
2010/11
$464.00
2009/10
$464.00
2008/09
$464.00
2007/08
$464.00
*MD4 has nine (9) separate zones of benefit with
varying assessment rates from $49.16
to $464.00 per
assessment unit. The zone shown
in the table is for a
single parcel with a duplex and is the highest assessment
per parcel.
ATTACHMENT NO. 2
City of West Covina
Landscape Maintenance
District No, 4
FISCALYEAR 2021/2022 ENGINEER'S REPORT
Intent Meeting: May 18, 2021
Public Hearing: June 1, 2021
1IY W I LLDAN
ENGINEER'S REPORT AFFIDAVIT
Landscape Maintenance District No. 4
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
92
Tyrone Peter
PE#C81888
TABLE OF CONTENTS
OVERVIEW.....................................................................................................................1
PROPOSITION 218 COMPLIANCE...............................................................................3
I. PLANS AND SPECIFICATIONS
5
A. ZONES OF BENEFIT...........................................................................................5
B. DESCRIPTION OF WORK...................................................................................7
C. IMPROVEMENTS AUTHORIZED BY THE 1972 ACT.........................................8
D. DESCRIPTION OF IMPROVEMENTS AND SERVICES.....................................9
II. METHOD OF APPORTIONMENT.........................................................................10
A. BENEFIT ANALYSIS..........................................................................................10
B. ASSESSMENT METHODOLOGY......................................................................11
III. ESTIMATE OF COSTS..........................................................................................13
A. CAPITAL IMPROVEMENT PROJECT FUND .................................................... 13
B. SUMMARY OF TOTAL COSTS .............. ERROR! BOOKMARK NOT DEFINED.
C. INCREASED SCOPE OF WORK AND SUMMARY OF COSTS........................13
IV. BOUNDARY MAP.................................................................................................15
V. ASSESSMENT ROLL............................................................................................17
►1/ WILLDAN
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. 4 ("District"). The District was established in 1975 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 developments in lieu of forming a Homeowner's Association. The funds collected
are used to maintain landscaping, irrigation, hardscape, and paseo lighting on 130
acres of public open space within the boundaries of the District.
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 FY, 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. 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 FY and the proposed District
assessments for FY 2021/2022 are not being increased over the assessments levied
in the prior FY, such assessment increases may be considered in the future due to
the rising costs associated with the maintenance of 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
assessment revenues and City contributions, and as such, City staff shall make the
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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 FY.
PROPOSITION 218 COMPLIANCE
On November 5, 1996, California voters approved Proposition 218 ("Prop 218"). 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.
Prop 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:
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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 1975 at the request
of the owner of the property, the initial District assessments were not required to
conform with the Article MID substantive and procedural requirements. The maximum
assessment rate for the District at the time of the passage of Prop 218 was $464.00
previously approved by the City Council in FY 1989-90. 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. ZONES OF BENEFIT
For FY 2021 /2022, the parcels, lots, subdivisions and developments within the District
are identified and grouped into nine (9) zones of benefit referred to as "Zones". Each
Zone reflects the landscape improvements associated with the development of
properties in that Zone, in order to fairly and equitably apportion the net cost of
providing those improvements to the properties that receive special benefits from the
service and activities associated with those improvements. Most of the parcels in the
District are identified as single-family and multi -family residential properties. All
parcels receive special benefits from the improvements because of the increased
desirability of a parcel that is located in an area with landscaping, and open space
areas. Public agency parcels within the District will not be used for residential
occupancies or commercial/industrial workplaces, and therefore, do not receive
special benefit and will not be assessed. The assessments proposed to be levied on
each property do not exceed the reasonable cost of proportional special benefit
conferred on each property from the funded improvements.
The following is a brief description of the District Zones:
Zone A1:
Parcels in this zone are commercial properties, which are located at the intersections
of major arterial roadways. These parcels are benefited by the District improvements
to a lesser degree due to their proximity to the open space areas. Nonetheless, the
parcels are benefited by aesthetically pleasing landscaping and open space areas
which enhance the desirability of living in the District, because its promotion of evening
business and industry vitality, and contribution to a positive nighttime visual image.
Zone A2:
Parcels in this zone are condominium type homes with open space areas located
along the fringes of the zone. Due to the nature and higher density of the parcels and
the higher intensity of the property use, the parcels derive benefits such as providing
a more peaceful and relaxed lifestyle due to the surrounding open space areas.
Zone A3:
Parcels in this zone are made up of condominiums and apartment complexes with
smaller areas of open space within the zone. Due to the denser housing within this
zone, Zone A3 is distinctly benefited by the interspersed open space areas within the
zone. Although open space areas are smaller than in other zones, the incorporation
of such areas into Zone A3's higher -intensity property uses peculiarly benefits Zone
A3's parcels by providing aesthetically pleasing landscaping and enhancing the
desirability of living in Zone A3.
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Zone A4:
Parcels in this zone are condominium type homes. The open space areas are in close
proximity to the condominiums in this zone, thus providing the zone's parcels with
benefits such as the enhancement of quality of life within the community characterized
by openness, landscape and natural vistas, wildlife and relaxed, peaceful living.
Zone A5:
Parcels in this zone are made up of detached single-family homes with large open
space areas in close proximity. Zone A5 parcels derive a benefit particular to their
zone, based on the significant size and proximity of the open space areas to the
parcels. The large open spaces in the vicinity of the parcels contribute to lower
housing density due to the dedication of acreage for landscaping and natural areas,
which thereby reduce the number of buildable parcels.
Zone A6:
Parcels in this zone are made up of detached single-family homes with open space
areas located along the fringes of the zone. Having the open space areas along the
perimeter of the zone is advantageous to the parcels within Zone A6 due to the open
space areas' positive results on the parcels, such as attracting natural flora and fauna,
providing a more peaceful and relaxed lifestyle.
Zone A7.
Parcels in this zone are made up of detached single-family homes. The open space
areas are in close proximity to the single-family homes. These open space areas are
connected with paseos that include concrete walkways and lights. These paseos
provide for safe pedestrian travel within the zone and into adjacent Zone A9.
Zone A8:
Parcels in this zone are made up of four-plexes with open space areas located along
the fringes of the zone that provide a barrier from the major arterial roadway. The
strategic location of open space areas at the fringe create an aesthetically pleasing
yet practical perimeter around the zone, which provides a more peaceful and relaxed
lifestyle by attracting natural flora and fauna to Zone A8 parcels which, because of the
close proximity to major arterial roadways, would not otherwise receive such benefit.
Moreover, the higher -intensity property use receives a significant benefit from the
natural vistas and landscaping provided by the open space areas.
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Zone A9:
Parcels in this zone are made up of duplexes. The open space areas are in close
proximity to the duplexes and are connected by paseos. The paseos are improved
with concrete walkways and lights. These paseos provide for safe pedestrian travel
within the zone and into adjacent Zone A7, and promote social interaction.
B. DESCRIPTION OF WORK
The existing facilities to be maintained and serviced include public open space area,
lighting, parkway, and manufactured slopes and appurtenant facilities. There are
approximately 130 acres of open space within the District.
The District will 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 and improvements which have been constructed within
the District and which will be maintained and serviced are described as follows:
Landscaping and Appurtenant Facilities
Facilities include but are not limited to: landscaping, planting, shrubbery, trees,
irrigation system, hardscape, fixtures, sidewalk maintenance resulting from
landscape growth and appurtenant facilities, in public right-of-way, parkways,
and dedicated easements within the boundaries of said District.
Lightino and Appurtenant Facilities
Facilities include but are not limited to: poles, fixtures, bulbs, conduits,
conductors, equipment including guys, anchors, posts and pedestals, metering
devices and appurtenant facilities as required to provide lighting in the public
right-of-way and dedicated easements within the boundaries of said District.
"Maintenance" means, as defined in the 1972 Act, the furnishing of services and
materials for the ordinary and usual operation, maintenance and servicing of the
landscaping, public lighting facilities and appurtenant facilities, including repair,
removal or replacement of all or part of any of the landscaping, public lighting facilities
or appurtenant facilities; providing for the life, growth, health, and beauty of the
landscaping, including cultivation, irrigation, trimming, spraying, fertilizing and treating
for disease or injury; the removal of trimmings, rubbish, debris and other solid waste;
and the cleaning, sandblasting and painting of walls and other improvements to
remove or cover graffiti.
"Servicing" means the furnishing of water for the irrigation of landscaping and the
maintenance of any of the public lighting facilities and furnishing of electrical energy
for the public lighting facilities or for the lighting or operation of landscaping or
appurtenant facilities.
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C. IMPROVEMENTS AUTHORIZED BY THE 1972 ACT
As applicable or may be applicable to this proposed 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
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.
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D. DESCRIPTION OF IMPROVEMENTS AND SERVICES
The District is located in the southeasterly part of the City of West Covina. To
encourage innovative housing types and neighborhood designs, and to preserve the
ridgelines of the San Jose Hills, this area was developed with relatively narrow street
right-of-way's and small lot sizes. The resulting surplus of land was converted to
landscaped slope areas and park -like "green belt" areas containing walkways,
landscaping, and lighting.
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.
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's, 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, multi -family residential,
and other developed land, is assessed per dwelling unit. This pro -ration accounts for
an adjustment for street right-of-way's and public easements.
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B. ASSESSMENT METHODOLOGY
The methods of apportionment utilized for the District calculates the receipt of special
benefit from the respective improvements based on the actual or proposed land use
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 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 and lighting
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 the FY 2021 /2022 are not proposed to be increased.
The District was established in 1975 prior to Proposition 218 requirements, and the
assessment for all properties is based on dwelling units. Each single-family residential
parcel, condominium complex, apartment, duplex, multi -family residential, and other
developed land, is assessed per dwelling unit. The land -use classification for each
parcel is based on the Los Angeles County Auditor/Controller's Assessment Roll.
The specific percent budget allocations, which were previously established for each
zone, will not be increased in FY 2021 /2022. To calculate the Assessment Rates, the
budget for each zone is divided by the total number of Equivalent Dwelling Units
("EDU") in the zone.
2021 /2022 City of West Covina - Landscape Maintenance District No. 4 Page 11
W W I LLDAN
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. 4
FY 2021/2022 Preliminary Assessment Summary and Comparison
Al
2.17%
30
451
$49.16
$49.16
$22,171.16
A2
2.43%
218
319
$77.89
$77.89
24,846.91
A3
12.08%
326
2,505
$49.33
$49.33
123,571.65
A4
11.29%
498
497
$232.48
$232.48
115,542.56
A5
4.00%
157
157
$260.98
$260.98
40,973.86
A6
6.97%
246
246
$289.99
$289.99
71,337.54
A7
52.65%
1549
1,548
$348.02
$348.02
538,734.96
A8
4.42%
118
117
$386.66
$386.66
45,239.22
A9
3.99%
88
88
$464.00
$464.00
40,832.00
*Totals may not foot due to rounding
BENEFIT ZONE LEGEND
Al Commercial Property
A2 Condos (Triangle Area, East of Azusa Ave. and north of Woodgrove Park)
A3 Condos Minimum Maintenance Benefit
A4 Condos Medium Maintenance Benefit
A5 Single Family Triangle Area (Special Area, West of Azusa Ave and north of
Amar Rd.)
A6 Single Family Medium Maintenance Benefit
A7 Single Family Maximum Maintenance Benefit
A8 Four-plex Minimum Maintenance Benefit
A9 Duplex Minimum Maintenance Benefit
2021/2022 City of West Covina - Landscape Maintenance District No. 4
Page 12
*"WILLDAN
///, 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 improvement projects.
B. PROPOSED INCREASE SCOPE OF WORK AND SUMMARY OF COSTS
The City's budget for the operation and service 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 the 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 FY.
Also located in the budget is the proposed increase in scope of maintenance work at
optimal levels. The District contains lighted paseos and approximately 30 to 50-foot
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 repairs.
Increased scope of work for the District is recommended to include the modification
of the Paseo Lighting to LED for energy cost savings, repair and replacement of light
standards, hardscape repair and replacement of off -grade, cracked and broken areas,
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 lighting, hardscape, and
landscaping scope is approximately double the existing District budget.
2021/2022 City of West Covina - Landscape Maintenance District No. 4 Page 13
*'W I LLDAN
Previous Fiscal Year Fund Balance
Revenues
Assessment Income (Total Balance to Levy)
Interest
Reimbursement from District No. 2
Total Projected Revenue
Expenditures
Direct Maintenance
Personnel Services
Materials and Services
Existing Maintenance Optimal Maintenance
$2,213,890 $2,213,890
$1,023,250
4,428
9,000
$173,553
$1,036,678
$1,023,250
4,428
$347,106
Maintenance Contracts
290,041
580,082
Utilities (electricity & water)
345,000
690,000
Maintenance Supplies
30,512
61,024
Property & Liability Insurance
11,289
22,578
Administration & Overhead
121,704
243,408
Total Direct Maintenance
972,099
$1,944,198
Engineering & Incidental
Personnel Services
$9,510
NPDES
75,000
Equipment Outlay
0
Total Engineering & Incidental
84,510
Capital Improvement (')
$0
Total Operating and Capital Budget
$1,056,609
Ending Fund Balance
$2,193,959
I'I See Capital Project Fund Section III. A
$19,020
150,000
0
169,020
$0
$1,036,678
$2,113,218
$1,137,350
Note: The variance in existing and optimal maintenance is the amount needed to support the recommended increased scope of work for
Landscape Maintenance District 4. The recommended scope of work includes the modification of the Passe Lighting to LED for energy
cost savings, repair and replacement of light standards, hardscape repair and replacement of off -grade, cracked and broken areas, 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. 4 Page 14
Wry WILLDAN
/K BOUNDARY MAP
A diagram showing the exterior boundaries of the District, boundaries of any zone
within the District and the lines and dimensions 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. 4 Page 15
n/ WILLDAN
CITY OF WEST COVINA
LANDSCAPE MAINTENANCE DISTRICT NO, 4
2021 /2022 City of West Covina - Landscape Maintenance District No. 4 Page 16
Mj 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. 4 Page 17
ATTACHMENT NO. 3
Assessment Income
Interest (1)
Transfer In From District 2
Prior Year Balance
Total Funding
Maintenance Costs (2)
Capital Improvements
Total Cost
Ending Balance
Assessment of Highest Zone (3)
West Covina Landscape Maintenance District No. 4
10 Year Fiscal Projection
$1,023,250 $1,023,250 $1,023,250 $1,023,250 $1,023,250 $1,023,250 $1,023,250 $1,023,250 $1,023,250 $1,023,250
4,428 4,388 4,306 4,180 4,011 3,796 3,535 3,226 2,870 2,464
9,000 9,000 9,000 9,000 9,000 9,000 9,000 9,000 9,000 9,000
2,213,890 2,193,959 2,152,856 2,090,115 2,005,264 1,897,817 1,767,281 1,613,152 1,434,917 1,232,051
$3,250,568 $3,230,597 $3,189,411 $3,126,545 $3,041,524 $2,933,862 $2,803,065 $2,648,628 $2,470,036 $2,266,765
1,056,609 1,077,741 1,099,296 1,121,282 1,143,707 1,166,582 1,189,913 1,213,711 1,237,986 1,262,745
0
$1,056,609 $1,077,741 $1,099,296 $1,121,282 $1,143,707 $1,166,582 $1,189,913 $1,213,711 $1,237,986 $1,262,745
$2,193,959 $2,152,856 $2,090,115 $29005,264 $1,897,817 $1,767,281 $1,613,152 $1,434,917 $1,232,051 $1,004,019
$464 $464 $464 $464 $464 $464 $464 $464 $464 $464
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.
(3) Previously approved maximum highest rate of $464, may not be increased further without vote.
ATTACHMENT NO.4
"I, RTITR 11Y[Ii0MCCM-113$Cfl
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.4
WHEREAS, the City's Landscape Maintenance District No. 4 (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
ATTEST
Thomas P. Duarte Lisa Sherrick
City Attorney Assistant City Clerk
I, LISA SBERRICK, ASSISTANT CITY CLERK of the City of West Covina, California,
do hereby certify that the foregoing Resolution No. 2021-41 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;Qya
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF WEST COVINA, CALIFORNIA, PRELIMINARILY
APPROVING THE ENGINEER'S REPORT FOR
LANDSCAPE MAINTENANCE DISTRICT NO. 4,
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. 4 (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.2021-41, 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. 4, 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. 4."
(b) The District is generally located in the southeasterly part of the City.
(c) The existing and proposed improvements are generally described as to landscaping,
irrigation, hardscape, and paseo lighting on 130 acres of public open space 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. 2021-42 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