Item 12 - REVISED MATERIAL Staff & Eng. Rpt. LMD 86-2 FY 92-93 - - AGENDA REPORT
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CITY OF POWAY �
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T0: Honorable Mayor and Members of the City Council
FROM: James L. Bowersox, City Manager
INITIATED BY: Alan D. Archibald, Director of Public Services�J�,
Daniel W. Cannon, Parks and Landscape Manager "�'��
. Patricia S. Nelson, Department Aide,,4�—"
DATE: May 19, 1992
SUBJECT: Staff and Engineer's Report Concerning LMD 86-2, Fiscal Year
1992-93. - Intention to Levy and Lollect Assessmznts
BACKGROUND
The original staff report stated that "Sufficient revenues will be generated by
assessments to offset the City's maintenance costs within the established •
district." This is to be corrected to read as follows:
Sufficaent revenues w�tl be generated by as5essmeqts ta affset th�
Ctty's;maintenancs costs within the estabiis6ed disiri,ct, LMD 86 2R;
Sunrise RanchjS�lverRtdge; .� ° ° .<. , ..� " ,° _.,
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Due �n a sha�tfall of. 're�enues for f)SCaI ye3r i942-93 for 'LM� 86 : m�
. 26s �S,ycamare .Creek> ay three :year' iqan from:the�a , is �'�°d-���
�ro osed tn the amount of SI7,F50 start3n ftscal y�ar I992 93, Sx a��n
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Assessments for Sycamore Creek are being increased from 530.15 to 5217.48 to
cover increased utility costs, expanded contract hours, and first year payback
on the proposed loan. Staff has met with residents representing Sycamore Creek
homeowners. These residents are aware of the increase in costs and assessments
for the district.
RECOMMENOATION
It is recommended that City Council approve the Engineer's Report for fiscal Year
1992/93 and adopt the resolution declaring the intention to levy and collect
assessments within Poway Landscape Maintenance District 86-2 for Fiscal Year
1992/93.
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a5/revised.862
ACTION:
iiUN 16 1992 i�L�l^
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� LMD 86-2 Engineer's Report Fiscal Year 1992-93 Page 3
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PROPOSED BUDGET Hf�� �9 , 4992 •
Zone ��A�' �
Contract $ 11, 500
Water/Power 4 , 570
Administration + 2 , 460 .
1992-93 Budget $ 18 , 530 .
6-Month Reserve + 9, 265
Total - $ 27 ,795
Cash Carry Over -. 13 , 750
Collected Fees for Future 0
Maintenance
Interest - 1, 200
Required Revenue 92-93 $ 12 , 845
Appropriated 5, 000
,�
Reserve Fund •
� Zone ��B"
Contract $ 16, 470 �
Water/Power 13 , 770
Administration + 4 , 060
1992-93 Budget $ 34 , 300
6-Month Reserve + 17 , 150
Total $ 51, 450
Cash Carry over - 3 , 000
Collected Fees for Future 0
Maintenance
Interest - 900
Required 92-93 $ 47 , 550 � �$�,�s �3sESSmt�
0,77�� "TjIS'7)21GTS /(o!o uu�'�S Rr??✓�2�� w�7�wr
3-Year Loan from ��rtp- �.v!}+✓ Fv.vOS FiQrr�
u�,��3�l�1f� �v,�05 - 17 , 150. 077I�YZ. 1��Sn2�GTS
First Year Payback + 5 , 700
Revenue Required 92-93 $ 36 , 100 � z �� y8 ��j433�i
''� /(oG u.v i7S
'� Appropriated 0
Reserve Fund ,
;U�V 1 6 19°2 lT�.�,; 12
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Agenda Report
June 16, 1992
Page 2
For comparison of costs, the budget amounts, not the assessment i
amounts, are being used. Assessment amounts vary qreatly due to
fund reserves, interest, and developer contributions. Budget
amounts present a fairer comparison of the year-to-year costs for �
a district.
The increase noted in the LMDs 86-2A, 86-2B, and 86-3 budgets were
all related to the .maintenance and utility costs of the landscape
improvements associated with new developments added to the
respective district budgets. For example, in LMD 86-2A, the
SilverRidge LMD landscape improvements were added to the 1992-93
budget. The bid for these improvements was $3 ,800 and utility
costs are estimated at $1, 150 totalling $4 ,950. This $4 ,950
addition plus last year' s budget for LMD 86-2A of $13 ,460 = $18,410
making an overall $100 increase for the district (LMD 86-2A) .
The budget for Sycamore Creek (LMD 86-2B) increased significantly
due to much higher water usage, and the residents reauest for a
higher level of maintenance in the area.
Contracts and Bid Snecifications
Attachment 2� is the landscape maintenance district's contract and
bid specifications for 86-2A (SUnrise Ranch area) . This contract
was rebid April, 1992 . The minimum maintenance costs associated
with each bid includes the cost of labor and State required
employee benefits, supervision and contractor's administration,
vehicle costs and amortization, all equipment use and amortization,
landscape material (eg. , fertilizers and pesticides) , plant
replacement, irrigation repairs up to $25 per incident, and bond
fees. Sunrise Ranch and SilverRidqe were bid at six hours minimum
i per week. The bid for Sunrise Ranch, including all the
i aforementioned costs, is $3 ,800. The SilverRidge contract was also
I $3,800.
i Hourly wages are difficult to calculate with the inclusion of the
above costs. The State of California requires that the minimum of
I $6.78 per hour be paid for landscape laborers and $9 .44 per hour be
� paid for irrigation laborers, which includes State required
benefits. The minimum number of maintenance hours and wages
required to be spent within Sunrise Ranch each year is six hours
per week times 52 weeks equals 312 hours. Dividing the contract
amount of $3800 by 312 hours result in an average hourly rate of
j $12.18 which includes benefits, supervision, vehicle and equipment
I - costs, and materials. Staff estimates that the average hourly rate
is $9 per hour, not the $45-50 per hour mentioned by Mr. William
Barnick.
� ,ilJ�7 : G 1992 ��t��,; 1�
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