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Resolution - 2006-41RESOLUTION NO.2006-41 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF WEST COVINA, CALIFORNIA, PRELIMINARILY APPROVING THE CERTIFIED ENGINEER'S REPORT AND DECLARING ITS INTENTION TO HOLD A PUBLIC HEARING ON AUGUST 1, 2006 FOR LANDSCAPE MAINTENANCE DISTRICT NO. 7 COMMENCING IN FISCAL YEAR 2006-2007 TO FUND THE OPERATION AND MAINTENANCE OF CERTAIN LANDSCAPING AND APPURTENANT FACILITIES WITHIN THE BOUNDARIES OF THE DISTRICT WEST COVINA LANDSCAPE MAINTENANCE DISTRICT NO. 7 WHEREAS, the City Council of the City of West Covina, California, did in Resolution No. 2006-12 adopted February 7, 2006, pursuant to the provisions of Proposition 218 and the "Landscaping and Lighting Act of 1972", of the State of California, require its State certified registered professional engineer to make. and file with the City Clerk of the City Council a report in writing, relating to assessments to fund the operation and maintenance of certain landscaping and appurtenant facilities that exist in the area of West Covina Landscape Maintenance District No. 7; and 1 WHEREAS, the City Council is considering a change to the method of calculating the assessments for the West Covina Landscape Maintenance District No. 7 so that improved and unimproved property pay the same assessment of $266.20 per year. Pursuant to Proposition 218 such proposed assessment is defined as an increased assessment which will require property owner/voter approval; and WHEREAS, if the property owners/voters do not approve the assessment rate change to $266.20 for improved and unimproved parcels, the City Council intends to approve assessments pursuant to the existing assessment method in the amount of $292.82 for improved parcels and $87.85 for unimproved parcels; and WHEREAS, the existing assessments for the West Covina Landscape Maintenance District No. 7 are exempt from the ballot requirements of Proposition 218 providing the assessments do not increase beyond the rate set in any prior year pursuant to Government Code 53750. In the fiscal years 1984-1985 to 1988-1989 the assessment rate for improved parcels was set at $644. The rate for the unimproved parcels ranged from $348 to $432 during that same time period. Therefore, the proposed assessment under the existing assessment method does not require property owner/voter approval; and WHEREAS, on June 6, 2006, the State certified registered professional engineer filed in the Office of the City Clerk of said City, his written report in writing responsive to the requirements of said Resolution No. 2006-12; and WHEREAS, said City Clerk has presented the said report to the City Council of said City and said Council has considered said report; NOW, THEREFORE, the City Council of the City of West Covina, California, does hereby resolve as follows: SECTION 1. That the report of the State certified registered professional engineer of the City of West Covina, California, dated May 25, 2006, which was filed in the office of the City Clerk of the City of West Covina, California, on June 6,2006, be and the same is hereby preliminarily approved subject to modification at the Protest Hearing. SECTION 2. • A) By the adoption of this resolution and preliminary approval of the Engineer's Report, the City Council declares its intention to levy and collect West Covina Landscape Maintenance District No. 7 assessments in the amounts of $266.20 for improved parcels and for unimproved parcels as set out in the Engineer's Report to fund operation and maintenance of certain landscaping and appurtenant facilities that exist in the area of West Covina Landscape Maintenance District No. 7 commencing with Fiscal Year 2006-2007, subject to property owner/voter approval. B) If the property owners/voters do not approve the proposed assessment of $266.20 for improved and unimproved parcels, then the City Council declares its intention to adopt assessments of $292.82 for improved parcels and $87.85 for unimproved parcels pursuant to the existing assessment method. Resolution No. 2006-41 June 6,2006 C) West Covina Landscape Maintenance District No. 7 is generally located in the easterly part of the City of West Covina on the north -facing slopes of the San Jose Hills. D) The existing and proposed improvements are generally described as landscaping and irrigation in public open space areas within the boundaries of the district. E) 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, any zones therein, • and the proposed assessments. F) The improvements and assessments shall be done under Proposition 218 and the Landscaping and Lighting Act of 1972, as amended. G) The assessments shall be collected on the property tax bill with and subject to the same procedures and penalties for delinquency as general county property taxes. SECTION 3. Public Hearing: That a Public Hearing is set for August 1, 2006, at 7:00 p.m. in the City Council Chambers located at 1444 West Garvey Avenue in the City of West Covina, to take testimony on the issue of whether or not the assessments should be approved. SECTION 4. Notice: The City Clerk shall send the NOTICE TO PROPERTY OWNERS AND BALLOT FOR THE LEVY OF ANNUAL ASSESSMENTS FOR THE LANDSCAPE MAINTENANCE DISTRICT NO. 7 in the form attached hereto as Exhibit "A" to owners of all property to be assessed. The notice shall be sent not later than 45 days before the hearing. 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. PASSED AND APPROVED on this Oh day of June 2006 Mayor ev H rfert ATTEST: City Clerk La 'e 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 6th day of June 2006, by the following vote of the City Council: AYES: NOES: ABSENT: • ABSTAIN: Hernandez, Lane, Sanderson, Touhe, None None None APPROVED AS TO FORM: 4"AAOt�" CityAttorney Athol Alvarez-Glasman Laurie Carrico 2 Exhibit "A" NOTICE TO PROPERTY OWNERS AND BALLOT FOR THE LEVY OF ANNUAL ASSESSMENTS FOR THE LANDSCAPE MAINTENANCE DISTRICT NO. 7 FOR THE CITY OF WEST COVINA I. Background • The City of West Covina's Landscape Maintenance District No. 7 was established in 1980 by the City Council pursuant to the "Landscape and Lighting Act" of 1972. The funds collected by the District maintain landscaping and irrigation in public open space landscaped and open space. For the Fiscal Year 2006-07, the City Council is proposing a change to the assessment formula so that developed lots and vacant lots are assessed the same amount. Currently undeveloped lots pay approximately 1 /3 the amount of developed lots. The requirements and provisions of Article XIID of the California State Constitution (Proposition 218) will be followed. Proposition 218 requires that the City Council send a ballot to each property owner to vote on the proposed change in the assessment formula. II. Notice of Assessment Information The Notice of Assessment Information summarizes a detailed Engineer's Report that was prepared for this Assessment by a registered professional engineer. The Assessment Engineer's Report is on file in the office of the City Clerk located at 1441 W. Garvey Avenue South, West Covina, CA 91790, and may be reviewed during normal business hours. The reason for the assessment is to pay the actual costs of the operation, servicing, and maintenance of public landscaped and open space areas, including: landscape planting, maintenance, repair of irrigation systems in common areas, trimming of trees, ground cover and turf maintenance, utility costs, and other items necessary for the satisfactory operation of these services in the District. Each assessed parcel within the District receives a special benefit from the landscape maintenance. The funds collected from the District are used to maintain landscaping and irrigation in public open space areas within its boundaries. The landscaping and open space provides a special benefit to the properties within the District even though there may not be landscaping or natural area immediately adjacent to a particular parcel. The benefits derived from the maintenance of these landscaped and open space areas are 1) the acreage dedicated for landscaping and natural areas reduces the number of buildable parcels resulting in lower housing density, 2) the provision of aesthetically pleasing landscaping and open space areas which enhance the desirability of living in the district, 3) the landscaped and open space areas attract natural flora and fauna providing a more peaceful and relaxed lifestyle and 4) the enhancement of a quality of life within the community characterized by openness, landscape and natural vistas, wildlife and relaxed, peaceful living. Developed residential parcels and residential vacant parcels both receive equal 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. FISCAL YEAR 2006-07 PROPOSED LANDSCAPE MAINTENANCE DISTRICT NO. 7 ASSESSMENT FORMULA For the Fiscal Year 2006-2007, in compliance with Proposition 218, the City Council is proposing a change to the existing District's assessment methodology and will submit the District's benefit analysis methodology and assessment rates to the property owners to vote in support of or in opposition. If the voter's support the proposed benefit methodology and assessment rates the District will assess the parcels as detailed in the "FY 2006-07 Proposed Assessment Summary " chart below. • The assessment methodology and assessment rate proposed for Fiscal Year 2006-2007 is that all parcels, improved or unimproved, receive equal special benefit for the landscape maintenance, and therefore, are assessed equally at $266.20 per parcel. Under this scenario, there would be no assessment increase in the Fiscal Year 2006-2007 for improved lots, but the assessment for vacant lots would increase from $79.86 to $266.20. The total amount of the assessment for all lots in the District is $101,422.00. The proposed assessment methodology would retain the existing previous high year assessment cap of $644 per parcel, and it would be applied to improved and unimproved lots. Page 1 of 6 NOTICE AND BALLOT FOR LANDSCAPE MAINTENANCE DISTRICT NO. 7 0 The assessment formula for all parcels is based on a per parcel basis. Since all of the assessable parcels are zoned residential, each parcel is assigned one assessment unit. The assessment per assessment unit is computed by dividing the cost for the District by the number of assessment units. The formula is 381 assessable parcels x 1 assessment unit equal 381 assessment units. The cost of the District, $101,422.20 divided by 381 assessment units equal $266.20 per parcel. If the property owners support the proposed assessment methodology, the parcels will assessed as follows: FY 2006-07 PROPOSED ASSESSMENT SUMMARY No. of Parcels Assessment per Parcel FY 2006-07 Revenue 381 $266.20 $101,422.20 The land -use classification for each parcel is based on the 2006-2007 Los Angeles County Auditor/Controllers Assessment Roll. EXISTING LANDSCAPE MAINTENANCE DISTRICT NO. 7 ASSESSMENT FORMULA The Maintenance District was established in 1980, prior to Proposition 218 requirements, and assessed the parcels based on the following two class rate structure. Zone Cl - All unimproved parcels within the District. Zone C2 - All improved parcels within the District. FY 2005- 06 ASSESSMENT SUMMARY No. of Parcels Assessment Per Parcel FY 2005-06 Revenue 300 - Improved $266.20 $79,860.00 81 - Unimproved $79.86 $6,468.66 381 $86,328.66 If the voters oppose the change in the methodology and rates, the District will assess the parcels based on the existing two class rate structure with a ten percent increase to produce revenue to pay for the operating expenses. The existing assessments for the West Covina Landscape Maintenance District No. 7 are exempt from the ballot requirements of Proposition 218 providing the assessments do not increase beyond • the rate set in any prior year pursuant to Government Code 53750. In the fiscal years 1984-1985 to 1988-1989 the assessment rate for improved parcels was set at $644. The rate for the unimproved parcels ranged from $348 to $432 during that same time period. Therefore, the proposed assessment under the existing assessment method does not require property owner/voter approval, and may be approved by the City Council. If the property owners oppose the proposed assessment methodology, the parcels will be assessed as follow: Page 2 of 6 NOTICE AND BALLOT FOR LANDSCAPE MAINTENANCE DISTRICT NO. 7 • FY 2006- 07 EXISTING ASSESSMENT SUMMARY No. of Parcels Assessment Per Parcel FY 2005-06 Revenue 300 - Improved $292.82 $87,846.00 81 - Unitnproved $87.85 $ 7,115.85 381 $94,961.85 Page 3 of 6 NOTICE AND BALLOT FOR LANDSCAPE MAINTENANCE DISTRICT NO. 7 ESTIMATE OF COST The basis for the proposed assessment for Fiscal Year 2006-2007 is calculated as follows: EXPENDITURES Estimated expenditures for maintenance and operation for Fiscal Year 2006-2007 are as follows: I. DIRECT MAINTENANCE COSTS A. Personnel Services • $ 35,690 B. Material and Services $ 86,344 C. Equipment Outlay $ 0 TOTAL DIRECT MAINTENANCE $ 122,024 II. ENGINEERING AND INCIDENTALS A. Personnel Services $ 3,203 TOTAL ENGINEERING AND INCIDENTALS $ 3,203 TOTAL OPERATING BUDGET S 125,227 III. CAPITAL IMPROVEMENT TOTAL CAPITAL IMPROVEMENT $ 0 IV. CONTINGENCY AND RESERVES A. Cash Flow Reserves $ 62,614 B. Contingency $ 139,342 TOTAL CONTINGENCY AND RESERVES 2$ 01,856 TOTAL DISTRICT EXPENDITURES 3$ 27,083 • REVENUES (Proposed Level Assessment of $226.20) Projected revenues available to the District for Fiscal Year 2006-2007 are as follows: I. Assessment Income ($266.20 x 381 parcels) $ 101,422 II. Interest $ 4,000 TOTAL PROJECTED REVENUE 105,422 FUND BALANCE (Reserves from Prior Year) 2$ 21.651 TOTAL FUNDS AVAILABLE_ 3$ 27,073 REVENUES (Existing Assessment Plus 10%) Projected revenues available to the District for Fiscal Year 2006-2007 are as follows: I. Assessment Income ($292.82 X 300 lots) $ 87,846 ($87.85 X 81 lots) $ 7,116 II. Interest $ 4,000 TOTAL PROJECTED REVENUE 98,962 FUND BALANCE (Reserves from Prior Year) 221,651 TOTAL FUNDS AVAILABLE 320,613 Page 4 of 6 NOTICE AND BALLOT FOR LANDSCAPE MAINTENANCE DISTRICT NO. 7 III. Notice of Public Hearing and Property Owner Voting Procedures This notice informs you, as record owner of property within the City of West Covina, Landscape Maintenance District No. 7 that on August 1, 2006, the City Council will conduct a Public Hearing at the City Hall Council Chambers. The time, date, and place of the hearing are as follows: • Time: Au Date: Augustst 1, 2006 Place: City Council Chambers 1441 W. Garvey Avenue South West Covina, CA 91790 • At the public hearing the City Council shall consider all objections or protests, if any, to the proposed assessments. Any interested person shall be permitted to present written or oral testimony. At the close of the public hearing, the City Council shall tabulate all of the ballots cast in support and in opposition to the proposed assessment. (see THE ASSESSMENT BALLOT PROCEDURES below). The proposed assessment shall not be approved if the ballots submitted in opposition to the assessment exceed the ballots submitted in favor of the proposed assessment. Proposition 218 requires that all record property owners in the proposed Landscape Maintenance District No. 7 have the opportunity to express their support for or opposition to the proposed assessment through an assessment ballot proceeding. Property owners who wish to submit a ballot must mail or personally deliver their ballots to the City Clerk prior to the close of the public hearing. See the next page for details on the Assessment Ballot Procedures. A ballot may be withdrawn and changed prior to the close of the public hearing. IV. Questions Regarding These Assessment Proceedings If you have any questions about the proposed assessments or this process, please contact Shannon Yauchzee, Public Works Director/City Engineer, City Hall, (626) 939-8425. If you lose your ballot or need a replacement ballot, please call the City Clerk at (626) 939-8433. ASSESSMENT BALLOT PROCEDURES The attached OFFICIAL PROPERTY OWNER BALLOT is for the use of the property owner identified on the BALLOT. The ballot may be used to express either support for or opposition to the proposed assessment. In order to be counted, this ballot must be signed in the space provided on the ballot by an owner or, if the owner is a partnership or a corporation, by an authorized representative of the owner. The ballot should then be placed in the enclosed envelope, sealed and must be delivered to the City Clerk, whether by mail or in person, as follows. Mail Delivery: If by mail, place the ballot in the mail in sufficient time to be received no later than August 1, 2006. If your ballot is not received by this time, the ballot may not be counted. Personal Delivery: If in person, deliver to the City Clerk at any time up to the close of the Public Hearing on August 1, 2006 in the City Council Chambers. Page 5 of 6 NOTICE AND BALLOT FOR LANDSCAPE MAINTENANCE DISTRICT NO. 7 10 INSTRUCTIONS FOR COMPLETION OF OFFICIAL PROPERTY OWNER BALLOT Record property owners may submit the enclosed OFFICIAL PROPERTY OWNER BALLOT to the City to express support or opposition to their proposed Assessment for Landscaping Maintenance. Record property owner generally means the owner of a parcel whose name and address appears on the last equalized secured property tax assessment roll. Please follow the instructions below to complete and return your ballot: 1. Register your vote on the enclosed assessment ballot in support of or in opposition to the Assessment by placing an "x" in the corresponding box. 2. Sign and date your ballot. (Ballots received without a signature will not be counted.) If the record owner is a public entity, partnership, corporation, trust, or limited liability company, the ballot must be signed by an authorized representative. 3. The envelope must be sealed. Mail or personally deliver your ballot to the City Clerk for the City of West Covina. A pre -addressed return envelope has been provided for your use. If you lose the pre -addressed envelope, you may return your ballot in another envelope, sealed and addressed to: City Clerk, 1441 W. Garvey Avenue South, West Covina, CA 91790. If you lose your ballot or need a replacement ballot, please call the City Clerk at (626) 939-8433 4. Ballots must be received by the City Clerk of the City of West Covina prior to the close of the public hearing to be held on August 1, 2006 at 7:00 p.m. at the city of West Covina Council Chambers. You may withdraw your ballot or change your vote, at any time up to the close of the public hearing. To do so, contact the City Clerk. Any ballots received after the close of the public hearing cannot legally be counted. 5. Following the close of the public hearing held at the City of West Covina Council Chambers, the Clerk will tabulate all of the ballots received. The ballots will be tabulated electronically. The ballots are weighted according to the proportionate financial obligation of the affected property with respect to paying the Assessment. (In this case all ballots count the same since all assessments are equal) If more than one record owner returns a ballot, each ballot shall be weighed in accordance with the proportional ownership interest as such interest appears on the last equalized assessment roll or from evidence submitted by property owners to the satisfaction of the City. 6. The Assessment will be confirmed unless majority protest exists or the City Council decides, based on testimony received, not to impose the assessment. Majority protest exists if, upon the close of the public hearing, the value of the ballots submitted in opposition to the Assessment exceeds the value of the ballots submitted in favor of the Assessment. Page 6 of 6