Item 4.2 - Adoption of Resolution Confirming Ballot Results Landscape Maintenance District 18-2City of Poway
COUNCIL AGENDA REPORT
APPROVED a
APPROVED AS AMENDED ❑
(SEE MINUTES)
DENIED ❑
REMOVED ❑
CONTINUED
RESOLUTION NO.
DATE: May 15, 2018
TO: Honorable Mayor and Members of the City Council
FROM: Michael Obermiller, P.E., Director of Public Works
CONTACT: Eric Heidemann, Assistant Direc @r of Public Works for Maintenance
Operations LIQ(
eheidemann@poway.org
SUBJECT: Adoption of Resolutions Confirming Ballot Results Landscape
Maintenance Districts 18-2
Summary:
On May 1, 2018, the City Council conducted a Public Hearing and property owner ballot protest
proceeding for the formation of the Proposed District, Landscape Maintenance Districts (LMD)
18-2, in accordance with Assessment Law. Upon closure of the Public Hearing, the City collected
those ballots that were properly submitted, weighted by the proportional financial obligation of
each property for which a ballot was submitted and not withdrawn, and initiated the tabulation of
ballots in the Observation Room of the City Council Chambers. The tabulation of ballots was not
complete following the last item scheduled on the May 1, 2018 City Council agenda. Therefore,
the City Council directed the ballot tabulation to resume the following morning on May 2, 2018 at
8 a.m. in the Observation Room of the City Council Chambers.
The results of the ballots submitted, as certified by the City Clerk, are summarized below:
Total assessment ballots distributed
1,256
Total assessment ballots submitted and not withdrawn
664
Assessment ballots submitted, and not withdrawn, in favor of the
proposed assessment
239
Weighted value of assessment ballots submitted, and not
$128,330.32
withdrawn, in favor of the proposed assessment
Assessment ballots submitted, and not withdrawn, in opposition to
the proposed assessment
425
Weighted value of assessment ballots submitted, and not with-
8165,813.80
drawn, in opposition to the proposed assessment
The majority of the submitted ballots do not support the formation of the Proposed District. At a
subsequent City Council meeting, the City Council will consider a resolution approving an
Engineer's Report and declaring the intention to levy and collect annual assessments within the
Existing District LMD 86-1. This means that the Existing District and current assessments will
remain in effect. Staff will return to the Council in August to discuss options for maintaining the
Existing District.
1 of 59 May 15, 2018, Item # 4.2
Adoption of Resolutions Confirming Ballot Results LMD 18-2
May 15, 2018
Page 2
Recommended Action:
Staff recommends the City Council adopt the attached Resolution declaring the results of the
property owner protest ballot proceedings conducted for the levy of assessment related to the
formation of Proposed District LMD 18-2.
Environmental Review:
This item is not subject to California Environmental Quality Act review.
Fiscal Impact:
None
Public Notification:
None
Attachments:
A. Resolution Declaring the Results of the Protest Ballot Proceeding for LMD 18-2
B. Public Hearing Materials
Reviewed/Approved By: Reviewed By: Approved By:
Wendy Kaserman Alan Fenstermacher Tina M. White
Assistant City Manager City Attorney City Manager
2 of 59 May 15, 2018, Item # 4.2
Resolution No. 18-
Page 1
RESOLUTION NO. 18-
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
POWAY, DECLARING THE RESULTS OF THE PROPERTY
OWNER PROTEST BALLOT PROCEEDING CONDUCTED FOR
THE LEVY OF ASSESSMENTS RELATED TO THE FORMATION
OF THE CITY OF POWAY LANDSCAPE MAINTENANCE
DISTRICT NO. 18-2, FISCAL YEAR 2018-19, AND APPROVING
CERTAIN RELATED ACTIONS
WHEREAS, on March 6, 2018, the City Council of the City of Poway (the "City") adopted
Resolution No. 18-006 initiating proceedings to form Landscape Maintenance District No. 18-2
("District) and directing the preparation and filing of an assessment engineer's report pursuant to
the provisions of the Landscaping and Lighting Act of 1972 being Part 2, Division 15 of the
California Streets and Highways Code ("1972 Act"), and in compliance with the substantive and
procedural requirements of Article XIII D, section 4 of the California State Constitution (the
"California Constitution") and the Proposition 218 Omnibus Implementation Act (the "Omnibus
Act"), being Government Code section 53750 et seq., (collectively, the "Assessment Law");
WHEREAS, the City Council did receive an Assessment Engineer's Report (hereafter
referred to as the "Engineer's Report") prepared by Willdan Financial Services in accordance
with the Assessment Law;
WHEREAS, on March 6, 2018, the City Council adopted Resolution No. 18-008
declaring its intention to form the District, preliminarily approving the Assessment Engineer's
Report, and calling for a property owner ballot protest proceeding to levy and collect
assessments within the District in accordance with the Assessment Law;
WHEREAS, the Engineer's Report has been made a part of the record of these
proceedings and is on file in the office of the City Clerk (the "City Clerk");
WHEREAS, pursuant to Resolution No. 18-008, the City Council; (a) set the time and
place for conducting a public hearing for the purpose of hearing property owner protests to the
proposed formation of the District, maintenance and servicing of the improvements, and the
assessments proposed to be levied on land within the District; and (b) ordered that the record
owner of each parcel proposed to be assessed have the right to.submit an assessment ballot in
favor of or in opposition to the formation of the District and the assessment proposed to be
levied on such parcel;
WHEREAS, in accordance with the Assessment Law, the City Council duly held a
property owner ballot protest proceeding for the formation of the Proposed District for the
purpose of presenting to the qualified property owners within the proposed District, the annual
levy of assessments for the improvements connected therewith. The annual levy of
assessments, as presented to the affected property owners of record in this ballot protest
proceeding, included and identified the initial maximum assessment rate for Fiscal Year
2018-19, the proportional assessment amount balloted for each benefiting property as well as
the annual inflationary adjustment applicable to future assessments and the total amount
balloted for the District. These assessments as presented are intended to fund in whole or in
part, the special benefit costs and expenses related to the ongoing maintenance, operation and
servicing of the local landscaping improvements, and appurtenant facilities related thereto and
3 of 70 May 15, 2018, Item # 4.2
Resolution No. 18-
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as more fully described in the Engineer's Report; and,
WHEREAS, the owners of record of identified parcels within the proposed District as of
the close of the Public Hearing held on May 1, 2018 did cast their ballots, weighted by the
proportional financial obligation of each property for which a ballot was submitted and not
withdrawn.
NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Poway as
follows:
Section 1: That the foregoing recitals are true and correct.
Section 2: The ballot protest proceedings for the proposed District were conducted
pursuant to the provisions of the Assessment Law, with ballots presented to the affected
property owner(s) for receipt by the City Clerk prior to the conclusion of the Public Hearing on
May 1, 2018, with each ballot weighted according to the proportional financial obligation of the
affected property.
Section 3: The tabulation and canvass of the property owner protest ballots was
conducted by the City Clerk or her designee, with all valid protest ballots returned by the
affected property owners being counted and confirmed. The City Clerk has prepared and
submitted to the City Council a Certificate of Tabulation Official and Statement of Assessment
Ballots Submitted (the "Certificate of the Tabulation Official"), a copy of which is attached as
Exhibit A hereto and incorporated herein by this reference, which reflects the results of the
tabulation of the assessment ballots submitted and not withdrawn.
Section 4: The City Clerk is hereby directed to enter this Resolution into the minutes
of the City Council, which shall constitute the official declaration of the results of such property
owner ballot protest proceeding.
Section 5: This Resolution shall become effective immediately upon its adoption and
the City Clerk shall certify the adoption of this Resolution.
PASSED, ADOPTED AND APPROVED by the City Council of the City of Poway,
California, at a regular meeting this 15th day of May 2018.
Steve Vaus, Mayor
ATTEST:
Nancy Neufeld, CMC, City Clerk
•
4 of 70 May 15, 2018, Item # 4.2
Resolution No. 18-
Page 3
STATE OF CALIFORNIA )
) SS
COUNTY OF SAN DIEGO )
I, Nancy Neufeld, City Clerk of the City of Poway, California, do hereby certify under penalty of
perjury that the foregoing Resolution No. 18- was duly adopted by the City Council at a
meeting of said City Council held on the 15th day of May 2018, and that it was so adopted by
the following vote:
AYES:
NOES:
ABSENT:
DISQUALIFIED:
Nancy Neufeld, CMC, City Clerk
City of Poway
5 of 70 May 15, 2018, Item # 4.2
Resolution No. 18-
Page 4
Exhibit A
Certificate of Tabulation Official and
Statement of Assessment Ballots Submitted for
City of Poway Landscape Maintenance District No. 18-2
STATE OF CALIFORNIA )
COUNTY OF SAN DIEGO ) ss.
CITY OF POWAY
The undersigned, the duly authorized tabulation official appointed by the City Council of the City
of Poway, DOES HEREBY CERTIFY that pursuant to the provisions of Article XIII D of the
Constitution of the State of California and the Proposition 218 Omnibus Implementation Act
(Government Code Section 53750 and following), I did tabulate the assessment ballots timely
submitted, and not withdrawn, in the assessment ballot proceedings pertaining to City of Poway
Landscape Maintenance District No. 18-2.
I FURTHER CERTIFY that this Statement of Assessment Ballots Received shows the
assessment ballots submitted, and not withdrawn, in favor of the proposed assessment and the
assessment ballots submitted, and not withdrawn, in opposition to the proposed assessment,
each total weighted according to the financial obligation of the affected properties for which the
assessment ballots were submitted.
Total assessment ballots distributed 1,256
Total assessment ballots submitted and not withdrawn 664
Assessment ballots submitted, and not withdrawn, in favor of 239
the proposed assessment
Weighted value of assessment ballots submitted, and not $128,330.32
withdrawn, in favor of the proposed assessment
Assessment ballots submitted, and not withdrawn, in 425
opposition to the proposed assessment
Weighted value of assessment ballots submitted, and not with- $165,813.80
drawn, in opposition to the proposed assessment
This certification is executed this _day of , 2018 in
California.
By:
Title:
6 of 70 May 15, 2018, Item # 4.2
APPROVED ❑
Gei OF art, ,1
City of Poway APPROVED AS AMENDED ❑
(SEE MINUTES)
COUNCIL AGENDA REPORT DENIED ❑
IZY n THE Or' REMOVED ❑
CONTINUED
RESOLUTION NO.
DATE: May 1, 2018
TO: Honorable Mayor and Members of the City Council
FROM: Michael Obermiller, P.E., Director of Public Works
CONTACT: Eric Heidemann, Assistant Director of Public Works for Maintenance
Operations
eheidemann@poway.org
SUBJECT: Public Hearing for Newly Formed Landscape Maintenance District
No. 18-2, Take Public Testimony and Tabulate Ballots
Summary:
Cities are authorized by the Landscaping and Lighting Act of 1972 to fund enhanced public
landscape improvements and maintenance services through the levy and collection of
assessments. Many assessment districts are formed at the time a developer builds a
development. As a community amenity, the developer will often install landscaping and other
improvements that are beyond a base level that a city would otherwise install if it were doing the
installation and maintenance. Because there are costs associated with installing and continuing
to maintain these enhanced improvements, a city will form an assessment district to fund the
expenses associated with the enhancements. The City currently has five landscape maintenance
districts that were formed in this manner, including Landscape Maintenance District 86-1 (the
Existing District).
In 1986, the City formed the Existing District to fund enhanced landscape improvements and
services within certain developments located in the City. The maximum assessment rate for the
Existing District has remained unchanged since 1998 after the passage of Proposition 218.
Proposition 218 amended the California Constitution by adding Articles XIII C and XIII D. Among
other things, Article XIII D established new procedural requirements for levying any new or
increasing any existing assessments, and placed substantive limitations on the use of the
revenues collected from assessments and on the amount of the assessment that may be imposed
on each parcel. Procedurally, Article XIII D requires that in order to impose a new or increase an
existing assessment on a property, a local agency must hold a public hearing, mail advance notice
of the public hearing to the record owner of each parcel proposed to be assessed, and conduct a
ballot protest proceeding. The assessment ballot protest proceeding is not an election or a vote
for purposes of California Constitution Article II, nor is it subject to the limitations and requirements
of the California Elections Code governing elections. The ballot provides affected property
owners with the opportunity to indicate their support for, or opposition to, the proposed
assessments. Prior to the passage of Proposition 218, it was within the City Council's authority
to increase assessments, as needed, without an affirmative approval of affected property owners.
The assessments imposed in the Existing District are no longer sufficient to fund its enhanced
improvements and services. Reserve funds have gradually been depleted in the Existing District
as expenses have grown and assessment revenues have not. Since 2012, it has been necessary
to use a portion of the Existing District's reserves each year to pay for annual operations.
Consequently, the level of landscape maintenance service has also gradually been reduced
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based on available funding.
Reducing the levels of maintenance has caused a significant deterioration of the condition of the
landscaping improvements. This, coupled with prolonged drought conditions and rising contract
labor and water costs, has further depleted fund reserves to a critical point. At this point, annual
expenses exceed annual revenues and the Existing District's reserves have been used to cover
essential but unanticipated expenses, like tree removal. In 2012, staff noted a downward trend
in the district's Capital Improvement Reserve balance. The balance began falling below 50% of
expenditures plus the Existing District's six-month operating reserve. As a result, the City began
a benefit and re-engineering analysis
When increases in the maximum authorized assessments are necessary because maintenance
costs of a landscape maintenance district exceed the maximum allowable assessment revenue,
special balloting procedures may be implemented to give district participants the opportunity to
raise the maximum allowable assessment to cover the District's maintenance needs. At the
March 6, 2018, City Council meeting, the Council adopted (1) Resolution No. 18-006, initiating
proceedings for the formation of Landscape District No. 18-2 (Proposed District) and directing the
preparation and filing of an engineer's report; and (2) Resolution 18-008, declaring the City's
intention to form the Proposed District and to levy and collect annual assessments that comply
with the requirements of Article XIII D. The following concerns were brought up at this meeting:
• What authority does the City have to add properties to the Existing District?
The California Constitution Article XIII D, section 4 provides guidance on the substantive
requirements of identifying properties included in the Proposed District. Before imposing
an assessment, a public agency must first identify all parcels that will receive a special
benefit from the proposed improvements or services for which the assessment is proposed
to be levied. The assessments must be supported by a detailed engineer's report
prepared by a registered professional engineer certified by the State of California. Only
"special benefits" are assessable, and local governments may not impose assessments
to pay for the cost of providing a general benefit. The assessment engineer's report must
quantify the proportionate special benefits derived by each identified parcel subject to the
proposed assessment in relationship to the entirety of the capital cost of the public
improvements or services being provided, and must calculate the amount of the
assessment to be imposed on each identified parcel. While certain properties were not
included in the Existing District because they were not part of the developments that
created it, they do receive special benefits from the improvements and services provided.
Because the City must identify all properties that are specially benefitted from the
improvements and services to be provided within the boundaries of the Proposed District,
properties that were not in the Existing District will be included in the Proposed District
and assessed for the special benefits that they receive.
• How are ballots weighted?
Ballots that are timely submitted to the City will be weighted according to the proportional
assessment to be imposed on the property. For example, if property owner"A" submits a
ballot in favor of the Proposed District and the assessment levied on his property is $50,
and property owner "B" submits a ballot in opposition to the Proposed District and the
assessment levied on her property is $150, then property owner B's ballot counts three
times more than property owner A's ballot.
• How is the City's general benefit contribution calculated?
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The City's general benefit contribution accounts for a baseline level of service that the City
would otherwise provide in the community if a landscape maintenance district did not exist.
The baseline level of service is calculated to be approximately 1%of the overall landscape
maintenance costs within the Proposed District. In addition, it is recognized that the
arterial streets within the Proposed District are routinely traveled by the public and other
property owners within the City. While the landscape improvements along these arterial
streets do not provide special benefits to properties outside the district, they do provide
some measure of indirect general benefit to persons and properties in the City that are not •
located in the Proposed District, and the public at large. Therefore, the general benefit
contribution for the Proposed District is assumed to be an additional 10% of the
maintenance expenditures associated with the arterial street landscape improvements.
• What are special benefits?
Special benefits are benefits provided to assessed properties that affect the assessed
property in ways that are particular and distinct from their effect on other parcels and that
real property in general and the public at large do not share. Assessed properties receive
direct advantages from the improvements and services provided. The portion of the costs
of the improvements and services that are determined to be of general benefit shall be
funded by the City's general benefit contribution and are excluded from the amount to be
assessed on properties as special benefits.
• Why were the properties on the north side of Espola Road west of proposed Landscape
Maintenance District No. 18-2, Zone D not included?
The improvements within LMD No. 18-2, Zone D provide direct advantages to parcels
within the zone that are particular and distinct from other parcels in general and the public
at large.
The Proposed District would result in an increase in the assessments currently imposed on
properties in the Existing District and the levy of assessments on properties previously, not
included in the Existing District. The proposed assessments and the boundaries of the Proposed
District are supported by a detailed engineer's report (Report) prepared by an independent,
registered professional engineer (Engineer) certified by the State of California. The Proposed
District would include 1,137 assessed parcels, an increase of 133 assessed parcels from the
Existing District, which the Engineer has identified will receive special benefits from the enhanced
improvements and maintenance services.
Recommended Action:
It is recommended that the City Council:
1. Conduct the Public Hearing upon the proposed assessments, and consider all
objections, whether written or oral, if any;
2. After all members of the public that wish to speak on the Proposed District have had
an opportunity to speak, close the Public Hearing, direct the City Clerk to tabulate the
Proposition 218 Ballots for Landscape Maintenance District No. 18-2, and trail the
consideration of the item; and
3. If the City Clerk cannot complete the tabulation of the ballots by the time the City
Council completes the remainder of the agenda, continue the agenda item to the
May 15, 2018 City Council meeting to confirm the ballot results, approve the final
report, and approve the levy and collection of the proposed assessments for
Landscape Maintenance No. 18-2, if successful. If unsuccessful, confirm ballot results
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at the May 15, 2018 City Council meeting. In such event, staff will bring back
landscape maintenance options'for City Council's consideration at a future meeting.
Discussion:
The Landscaping and Lighting Act of 1972 (State of California Streets and Highways Section
22500 and following) is a tool used by local government agencies to form Landscaping and
Lighting Districts to finance the costs of operating and maintaining enhanced landscaping and
appurtenant improvements, maintenance, and services beyond those generally provided by the
City. The City Council previously approved the formation of the Existing District pursuant to the
provisions of the Landscaping and Lighting Act of 1972, referred to as LMD 86-1. The purpose
of a landscape maintenance district(LMD) assessment is to create a revenue mechanism to offset
the expenditures related to landscaping improvements and related services within the boundaries
of the district that provide special benefits to the properties in the district. Revenues generated
within the District can only be used to fund the services and improvements of the LMD for which
they were imposed. The costs are distributed by equitably assessing properties in accordance
with the proportional special benefits conferred on them by the improvements and services
provided.
In 1986, the landscape improvements for the Existing District were initially constructed by the
developer of Bridlewood. At the time, the boundary of the Existing District only included
Bridlewood (415 lots). The district grew as additional subdivisions were added by written consent
from the property owner(s) at the time: Piedmont Park, Stone Canyon Ranch, The Grove,
Huntington Gate, Green Valley Groves, Serenata, Old Coach Collection, The Heritage, The
Church of Jesus Christ of Latter Day Saints, North Point, Vision Homes, Huntington Court, Hidden
Valley Ranch, Ligouri Ranch, The Heights and other miscellaneous properties. These properties
were originally assessed for the cost to maintain the landscaping improvements located within
the rights-of-way adjacent to Espola Road, Lake Poway Road, Del Poniente Road and Riparian
Road.
Currently, the Existing District contains 1,004 assessed properties within five zones (A, B, C, D
and E). Zones A, C and D have a current annual assessment of $243.04, while Zones B and E
have a current annual assessment of $0 since the improvements adjacent to those Zones are
being privately maintained under an Agreement with the City.
The Existing District is comprised of approximately 1.08 million square feet of landscaping and
1,645 trees. In addition to the landscaping materials (trees and shrubs), the District is also
responsible for maintaining irrigation infrastructure (controllers, timers, pipes and emitters). The
types of services that are contracted out include irrigation maintenance, litter and weed control,
tree trimming and general maintenance.
As expected, the cost to provide services has steadily increased over the years, increasing
Existing District expenditures. However, the assessment revenues have stayed the same. When
the Existing District was formed, it did not include an assessment escalation factor (e.g., cost of
living index) because it was within the City Council's authority to increase assessments when
costs increased. The passage of Proposition 218 removed that ability and instead made new or
increased assessments subject to a property owner protest ballot process. Additionally, the State
of California has approved prevailing wage changes for landscape maintenance job
' classifications; therefore, a substantial increase in labor costs has and will continue to burden the
Existing District. Furthermore, due to combined drought and aging trees, staff has observed a
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substantial number of dead and diseased trees along with an increase in the number of
unexpected costs due to fallen trees. Finally, without an increase in revenues, staff has had to
make significant reductions to the service levels in the Existing District as costs for maintenance
contracts, utilities and repairs continued to rise. This, combined with the need to replace aging
infrastructure and perform expensive tree removals, has further accelerated the need for an
immediate increase in district revenues. It is essential sufficient revenues are generated to ensure
the district is self-sustaining and offset the ongoing annual expenditures.
Currently, ordinary annual expenses of the Existing District exceed annual revenues. Without an
increase in the assessments, services in the Existing District will be reduced to unsustainable
levels and watering will be restricted to once per week. Staff is concerned this will result in
additional tree failures that will only get worse over time and require removal of trees.
Recognizing the need to increase the revenues for the Existing District, and working within the
parameters of Proposition 218, it was necessary for the City to engage the services of an
assessment engineer to reevaluate the Existing District and identify every parcel upon which
special benefits are conferred from the enhanced landscape improvements and maintenance
services. Because of the changes in the law governing assessments as a result of Proposition
218, if the City wishes to increase the assessments to fund the improvements and services, it
cannot continue with the Existing District in its current form. Rather, the Existing District and the
proposed assessments must be evaluated for compliance with Article XIII D.
Analysis:
The City engaged the services of Willdan Financial Services (the Engineer) to perform an analysis
of the existing improvements, services, and assessments in the Existing District and develop a
recommendation to revise the assessments in line with the landscape maintenance expenditures
in compliance with Proposition 218, the Landscape and Lighting Act of 1972 and the Proposition
218 Omnibus Implementation Act (Government Code section 53750 and following). Before
imposing an assessment, a public agency must first identify all parcels that will receive a special
benefit from the proposed improvements or services for which the assessment is proposed to be
levied. The Engineer reviewed the Existing District and determined the assessment zones should
be re-engineered and the assessments adjusted to cover the expenditures and identify all of the
parcels that are specially benefited by the improvements and services. It is recommended the
best approach to bring the district into Proposition 218 compliance is to form a new Landscape
Maintenance District No. 18-2 (i.e., the Proposed District) to replace the Existing District.
The Proposed District would: appropriately assess all parcels that specially benefit from the
improvements and services; and provide sufficient assessment revenues to allow for the
operation and maintenance of landscaping/trees and appurtenant facilities, including, but not
limited to: labor, electricity, water, materials and contracted services. Notably, the option of
assessing an annual inflationary adjustment is included along with the proposed assessments on
an annual basis to ensure that there are sufficient revenues to maintain the improvements on a
going forward basis. Accordingly, if approved, the maximum assessment rates established for
the improvements and services in the previous fiscal year for each Zone may be adjusted by the
lesser of three percent (3%) or the percentage increase in the Consumer Price Index (CPI). The
Consumer Price Index used for the inflationary adjustment shall be for the San Diego Area for All
Items for All Urban Consumers (CPI-U), as developed by U.S. Bureau of Labor Statistics. The
CPI used shall be as determined by the Bureau of Labor Statistics for a similar period of time.
This should allow the Proposed District sufficient revenues to keep pace with inflationary cost
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increases over time.
The effort to re-engineer the Existing District began in 2016 by evaluating the relationship of the
properties currently being assessed relative to the location, nature and extent of the landscape
improvements. In order to accurately reflect the improvements that provide special benefits to
the properties proposed to be assessed, the Existing District was divided into more zones, which
was reflected in the Fiscal Year 2017/2018 Engineer's Report.
Based on the location of the improvements and proximity to all parcels in the area, the Engineer
initially identified several parcels/developments located along Lake Poway Road, Del Poniente
Road, Riparian Road, Espola Road, and Old Coach Road that are not part of the Existing District
but receive special benefits from the Existing District's landscape improvements and maintenance
services and should therefore be added to the Proposed LMD (Attachment C). These properties
were not a part of any of the developments for which the Existing District was formed and, under
California law existing at the time of formation, were not required to be included in the Existing
District. Additionally, the Engineer identified 37 properties that were determined not to receive
special benefits. These parcels were removed from the District as documented in the Fiscal Year
2017/2018 Engineer's Report for the Existing District.
A special benefit means a distinct benefit over and above general benefits conferred on real
property. General enhancement of property values does not constitute a "special benefit". A
special benefit must affect the assessed property in a way that is particular and distinct from its
effect on other parcels and that real property in general and the public at large do not share. This
is the primary reason for establishing zones, which is a means of identifying and separating the
improvements that benefit specific properties.
Using the Engineer's preliminary analysis, staff held a series of neighborhood meetings/open
houses in January and February 2018 to inform property owners of the financial condition of the
Existing District, the preliminary engineering analysis, and the proposed balloting process to re-
engineer the District and increase assessments.
Assessments are computed based on the number of equivalent benefit units (EBU) in the
Proposed District. The Existing District divides local special benefits into five (5) zones and the
EBU has been calculated for vacant, single-family residential and multi-family residential
properties. After reviewing the land use classifications of the properties to be assessed and the
special benefits provided relative to their proximity to, and the nature and extent of the landscape
improvements and maintenance services, it is recommended that the Proposed District contain
nine (9) zones.
The Proposed District assessment rates for an EBU range from $112 to $670 annually.
Additionally, a provision has been included to allow for appropriate adjustments in future
assessments, at the discretion of the City Council, in line with the San Diego Consumer Price
Index (capped annually at 3%). The table below depicts the changes in assessments (by zone)
for those properties that are within the Proposed District:
Zone Current Proposed
Assessment Assessment
A-1" $243.04 $386.00
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A-2* $243.04 $386.00
A-3* $243.04 $403.00
A-4* $243.04 $522.00
A-5* SO" $670.00
A-6* $0 $386.00
B $0" $114.00
C* $243.04 $112.00
D $243.04 $501.00
'Zone includes parcels proposed to be added that have a current
assessment of$0 per year. Their maximum assessment will be the
same as all other parcels within their respective Zone.
"All or a portion of the improvements that provide special benefits to
properties in Zones A-5 and B are currently being privately maintained
under separate Agreements between the City and the HOA/property
owner.
It is also important to note that the parcels in Zones A-2, A-5 and A-6 are assigned a reduced
special benefit(20% EBU reduction) in recognition of their reduced proximity to the improvements
shared with properties in Zones A-1, A-3 and A-4.
General Benefit
The City provides limited (as-needed) weed abatement, rodent control, and erosion control
services ("baseline level of service") for the landscape areas currently maintained within the
Proposed District and elsewhere in the City. This baseline level of service typically provides for
periodic maintenance of the improvement areas necessary to ensure public safety and essential
property protection. The primary purpose of baseline services is to avoid negative impacts on
adjacent roadways and potential property damage resulting from erosion or fire hazards, but
results in a far less visually pleasing environment than is created with the enhanced levels of
improvements and services associated with the regular landscape maintenance provided in the
Existing District and Proposed District.
For the purpose of the Proposed District, the City's general benefit contribution accounts for this
baseline level of service. However, it is recognized that the arterial streets within this district are
routinely traveled by the public and other property owners within the City. While the landscape
improvements along these arterial streets do not provide special benefits to properties outside
the District, they do provide some measure of indirect general benefit to other properties in the
City, the district and the public at large. Therefore, the general benefit contribution for the
Proposed District is assumed to be an additional 10% of the overall maintenance cost to account
for this indirect general benefit. The proposed annual general benefit contribution by the City for
the Proposed District is approximately $76,123.
Procedural Requirements:
As set forth in the Landscaping and Lighting Act of 1972, Proposition 218, and the Proposition
218 Omnibus Implementation Act (Government Code section 53750 et seq.), local agencies are
required to follow these steps:
1. The City Clerk collects all ballots received prior to the close of the Public Hearing on
May 1, 2018, at 7 p.m. After the close of the Public Hearing, the Clerk may open and
13 of 59 May 15, 2018, Item # 4.2
Public Hearing to Tabulate Proposition 218 Ballots
May 1, 2018
Page 14
tabulate the ballots.After the ballots have been tabulated, the results will be presented
to the City Council later in the City Council meeting that evening, or at a subsequent
City Council Meeting if the tabulation cannot be completed before the City Council
completes the remainder of the items on the May 1, 2018 City Council agenda.
2. Adopt resolutions confirming ballot results, approval of final report and levy of
assessments (May 15, 2018).
3. If a majority of the submitted ballots support the formation of the Proposed District,
the City Council may elect to adopt resolutions declaring the results of the ballot
protest, approving the formation of Landscape Maintenance District No. 18-2,
confirming the assessment diagram and engineer's report, overruling all protests, and
approving the levy and collection of the new assessments. if the Proposed District is
established, the Existing District will remain in existence with an assessment rate of
zero as long as the assessments for the Proposed District are imposed. Upon
approval, the new assessments will be collected through the San Diego County Office
of the Assessor, along with annual property tax bills effective in Fiscal Year
2018/2019.
4. If a majority of the submitted ballots do not support the formation of the Proposed
District, the City Council will adopt a resolution declaring the results of the ballot
protest. At a subsequent City Council meeting, the City Council would adopt a
resolution approving an Engineer's Report and declaring the intention to levy and
collect annual assessments within the Existing District (June 19, 2018). This means
that the Existing District, and current assessments (without a cost escalator) would
remain in effect.
5. If a majority of the submitted ballots do not support the formation of the Proposed
District, adopt a resolution ordering the annual levy of assessments within the Existing
District (July 17, 2018).
6. Submit levies to the County of San Diego (no later than August 10, 2018).
Notices of the Public Hearing and Proposition 218 ballots were mailed to the affected property
owners, listed on the current County of San Diego Tax roll, pursuant to the regulations governing
majority protest proceedings. This Public Hearing is being held not less than 45 days after the
mailing of the requisite notices, as required by Proposition 218 and the Proposition 218 Omnibus
Implementation Act. Property owners have until the close of the Public Hearing to submit a signed
and marked assessment ballot. Ballots that were received by the City Clerk by U.S. Mail, or
otherwise delivered to the City Clerk before the Public Hearing, or received during the Public
Hearing itself, shall be counted, if they were properly completed and executed. Tabulation of the
ballots will be conducted under the supervision and direction of the City Clerk.
During the Public Hearing, the City Council will consider all public comments, if any, to the
proposed assessments, whether oral or written. Upon the close of the Public Hearing, the agenda
item will be trailed, the assessment ballots received will be opened and tabulated, consistent with
all applicable procedures required by Proposition 218 and its implementing statutes, weighted by
the proposed assessment amount on each property, and the results announced. If the time to
14 of 59 May 15, 2018, Item # 4.2 1
Public Hearing to Tabulate Proposition 218 Ballots
May 1, 2018
Page 15
tabulate the ballots exceeds the time for the City Council meeting, the City Council may continue
the tabulation to a different date and time and at a publicly accessible location, so long as such
time and location are announced during the meeting. This agenda item will then be continued to
a subsequent meeting at a specified date and time, so that results may thereafter be announced
and any further action taken.
All returned ballots will remain unopened and in the charge of the City Clerk until the close of the
Public Hearing and direction is given to staff to tabulate the ballots. For purposes of tabulation,
all the properly completed returned ballots submitted, and not withdrawn, will be tabulated and
weighted according to the financial obligation of each particular parcel. Article XIII D of the
California Constitution provides that a Majority Protest exists if the assessment ballots submitted,
and not withdrawn, in opposition to the proposed assessments exceed the assessment ballots
submitted, and not withdrawn, in favor of the proposed assessments, weighting those assessment
ballots by the amount of the proposed assessment to be imposed upon the identified parcel for
which each assessment ballot was submitted.
If there is no Majority Protest as described above, the City Council may approve the formation of
the Proposed District and the levy and collection of the assessments by adopting a resolution at
the May 1, 2018 meeting if the ballot tabulation is completed or the May 15, 2018 City Council
meeting if it is not. Any property owner approved assessments will be submitted to the San Diego
County Tax Assessor to be included on the property tax roll for each parcel for Fiscal Year
2018/2019. If a Majority Protest does exist, LMD No. 86-1 and the assessments will remain in
effect at the current maximum rates for Fiscal Year 2018/2019.
As stated earlier in this report, the Existing District assessments fall short of covering expenses.
Without an increase in the assessments, service levels will continue to decline, and watering will
be restricted to once per week.
Environmental Review:
This item is not subject to California Environmental Quality Act review.
Fiscal Impact:
The Existing District (LMD 86-1) establishes the funding mechanism to provide revenue covering
the operating and maintenance costs landscape improvements and maintenance services in the
district boundaries. For Fiscal Year 2017/2018, the total estimated annual assessment and
general fund contribution revenues are approximately $231,860 and $45,414, respectively. It
should be noted that the City has increased its General Fund contribution to the Existing District,
to keep pace with inflation, notwithstanding the lack of a CPI cost escalator for the assessments
imposed on property owners in the district. Anticipated annual expenses of the Existing District,
as estimated at this time, are $318,831, resulting in the further use of reserves this Fiscal Year.
Current revenues generated by the Existing District are not adequate to fully fund landscape
maintenance. In order to generate additional revenues and ensure compliance with Proposition
218, the City is proposing to form a new assessment district that will replace the Existing District.
The Proposed District, if approved, will generate an estimated annual assessment and general
fund contribution revenues of approximately $512,081 and $76,123, respectively, in the first year,
to cover the operations and maintenance expenditures and establish a rehabilitation and
renovation reserve.
15 of 59 May 15, 2018, Item # 4.2
Public Hearing to Tabulate Proposition 218 Ballots
May 1, 2018
Page 16
Public Notification:
Below is a summary of staff's efforts to communicate with affected property owners:
• Held four (4) Open Houses at City Hall (January 16, January 18, January 30 and
February 1);
• Posted an interactive map showing current and proposed assessments, a fact sheet,
questions and answers, and the previous year's Engineer's Report on a dedicated
page on the City's website;
• Met with property owners at their homes by request;
• Posted information on social media sites (Nextdoor, Twitter and Facebook);
• Distributed informational door hangers on affected properties; and
• Mailed notice of the Public Hearing and ballots on March 14, 2018, to affected property
owners.
Affected property owners were also made aware of the March 6, 2018, City Council meeting
by direct letter sent to all property owners within the Proposed District.
Attachments:
A. Sample Ballot
B. Preliminary Engineer's Report for City of Poway Landscape Maintenance District No.
18-2
C. Map of Proposed City of Poway Landscape Maintenance District No. 18-2
D. Public Comments
E. Resolution Declaring Results of Protest Balloting LMD 18-2
F. Resolution Approving Formation, Confirming Engineer's Report and Approving the Levy
and Collection of Assessments LMD 18-2
Reviewed/Approved By: Reviewed By: Approved By:
Wendy Kaserman Alan Fenstermacher Tina M. White
Assistant City Manager City Attorney City Manager
16 of 59 May 15, 2018, Item # 4.2
OFFICIAL ASSESSMENT BALLOT
CITY OF PCWAY
LANDSCAPE MAINTENANCE DISTRICT No. 18-2
This Ballot is for the owner of the property designated as Assessor's Parcel Number(s): «BALLOTAPN» within Zone
«BALLOTZONE» of the proposed City of Poway (City) Landscape Maintenance District No. 18-2 (the District). This is your
official property owner assessment ballot regarding the formation of the District and the levy of annual assessments to fund
the ongoing expenses associated with the maintenance of landscape improvements within the District that confer special
benefits on your property as outlined in the accompanying Notice and described more fully in the Engineer's Report, which is
on file with the City.
«OWNER1»
«OWNER2»
«MailAddress»
«MailCity», «MailState» «MailZip»
To complete your ballot, please mark below an(X)in the voting square next to the word "YES"to indicate your support
for or next to the word "NO" to indicate your opposition to the proposed assessment, sign and date the ballot, and
return the entire ballot to the City Clerk of Poway. If you wrongly mark, tear, or deface this ballot, return it to the City
Clerk to obtain a replacement ballot. To be counted, all ballots must be received by the City Clerk no later than the
close of public testimony at the public hearing scheduled for May 1, 2018 at 7:00 p.m.
Assessor's Parcel Number(s): «BALLOTAPN»
Maximum Assessment Rate for Fiscal Year 2018/2019•: «BALLOT RATE» per EBU
Your Parcel's Balloted Assessment Amount: «BALLOT_AMT»
Total amount balloted for all properties within the District: $ 512,080.96
Your Parcel's Proposed Assessment for Fiscal Year 2018/2019: «FY18-19_AMT»
This is an annual assessment that will be collected as part of your County property tax bill.
'The Maximum Assessment Rate for Fiscal Year 2018/2019 shown above includes an inflationary
adjustment that allows this rate to be increased each fiscal year by the percentage change in the
Consumer Price Index (CPI) for the San Diego Area, not to exceed 3% commencing in Fiscal Year
fr2019/2020. However, the assessment rate applied each year shall be based on budgeted expenses
(which may be less), but in no case, shall the assessments exceed the allowable adjusted maximum
O, assessment rate without the approval of the property owners.
Ji UYES —IN FAVOR OF THE ASSESSMENT proposed for
the District and the assessment for my property shown
above including the annual inflation adjustment applicable «Barcode_Yes»
to future assessments based on the percentage change in
the Consumer Price Index(CPI), not to exceed 3%.
® NO --OPPOSED TO THE ASSESSSMENT proposed for
the District and the assessment for my property shown
above including the annual inflation adjustment applicable «Barcode_No»
to future assessments based on the percentage change in
the Consumer Price Index (CPI), not to exceed 3%.
I hereby declare, under penalty of perjury, that I am the record owner of the property(Assessor's Parcel
Number) identified on this ballot or I am the authorized representative of that record owner.
Signed
Date
Please see the back of this sheet for information about your assessment ballot and instructions for completion and delivery of
the assessment ballot. This ballot will be accepted and tabulated pursuant to California Govemment Code Section 53753.
17 of 59 May 15, 2018, Item # 4.2
INFORMATION ABOUT YOUR ASSESSMENT BALLOT AND
INSTRUCTIONS FOR COMPLETION AND DELIVERY OF ASSESSMENT BALLOT
LANDSCAPE MAINTENANCE DISTRICT NO. 18-2
To Cast Your Ballot: Prior to the public hearing, completed ballots may be personally delivered to the City Clerk's Office
located at 13325 Civic Center Dive, Poway, California; or mailed to the City of Poway at the address indicated below.A return
envelope specifically for this ballot proceeding has been provided for your convenience that is addressed to the City of Poway.
You may also personally present completed ballots to the City Clerk at the public hearing on May 1, 2018, at 7:00 p.m. If you
return your ballot by mail, please be sure to allow time for mail delivery; the City Clerk must receive all ballots no later than the
end of the public testimony portion of the public hearing on May 1, 2018. If you damage or misplace your ballot, a replacement
ballot can be obtained from the City Clerk either by contacting the City Clerk's Office or by contacting the City's Public Works
Department as indicated below. Only ballots issued by the City are considered valid ballots (copies or facsimiles are not valid
ballots). Any Ballot returned unmarked or unsigned, or not received by the City Clerk before the end of the public
hearing, will be rejected and not counted. Only valid ballots received by the City Clerk before the end of the public
hearing shall be counted.
All submitted ballots must be clearly marked to indicate either"Yes --In Favor of the Assessment" or"No--Opposed
to the Assessment" and signed; otherwise the ballot will be rejected and not counted. To ensure the privacy of your
ballot prior to the tabulation, please return your ballot in the envelope provided, or in a sealed envelope that indicates that a
ballot is enclosed by noting on the front of the envelope"Assessment Ballot—Do Not Open".A ballot previously submitted may
be withdrawn at any time prior to the close of the public hearing by request to the City Clerk, by the person(s)that signed the
submitted ballot. An assessment ballot may be changed at any time prior to the close of the public hearing by requesting a
withdrawal of the previous ballot and requesting a replacement ballot. Only the person(s) signing the ballot may make such a
request. The replacement ballot must be received by the City Clerk prior to the deadline set forth herein.
If you have questions: Should you have any questions prior to the public hearing, you may contact the City's Public Works
Department at(858)668-4700.
City of Poway Completed ballots MUST be received by the City Clerk no later than
ow the close of the public testimony portion of the public hearing which is
Cit Box
Poway, 78 92074-9926 scheduled to begin on Tuesday, May 1, 2018 at 7:00 p.m.
at City Hall located at 13325 Civic Center Dive, Poway, CA.
How to cast your ballot:
1. 2. 3. Return to the City Clerk on or before the
Check Sign and Public Hearing on, May 1, 2018 in accordance with the
Yes or No date it instructions referenced above
18 of 59 May 15, 2018, Item # 4.2
OF POiti
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CITY OF POWAY
Engineer's Report
Formation of
Landscape Maintenance District No. 18-2
Fiscal Year 2018/2019
Intent Meeting: March 6, 2018
Public Hearing: May 1 , 2018
CITY OF POWAY
13325 CIVIC CENTER DRIVE
POWAY. CA 92064
FEBRUARY 2018
PREPARED BY
WILLDAN FINANCIAL SERVICES
WWI LLDAN
Financial Services
19 of 59 May 15. 2018. Item # 4.2
ENGINEER'S REPORT AFFIDAVIT
City of Poway
Landscape Maintenance District No. 18-2
District Formation
Fiscal Year 2018/2019
Annual Levy of Assessments
Commencing in Fiscal Year 2018/2019
City of Poway,
County of San Diego, State of California
This Report and the enclosed descriptions, budgets, and diagrams outline the improvements,
zones, and assessments being proposed for the consideration of the Poway City Council
regarding the formation of Landscape Maintenance District No. 18-2 for Fiscal Year 2018/2019.
Said District includes each lot, parcel, and subdivision of land identified as receiving a special
benefit from the improvements to be funded by the District annual assessments as identified on
the San Diego County Assessor's Parcel Maps at the time this Report was prepared. Reference
is hereby made to the San Diego County Assessor's Parcel Maps for a detailed description of the
lines and dimensions of each parcel within Landscape Maintenance District No. 18-2, including
all subsequent subdivisions, lot-line adjustments, or parcel changes therein. The undersigned
respectfully submits the enclosed Report as directed by the City Council.
Dated this day of , 2018.
Willdan Financial Services
Assessment Engineer
On Behalf of the City of Poway
By:
Jim McGuire
Principal Consultant
By:
Richard Kopecky
R.C.E. # 16742
20 of 59 May 15, 2018, Item # 4.2
Table of Contents
Introduction 1
Ballot Proceedings 2
Report Content 3
Part I — Plans and Specifications 5
Description of the District 5
Zones of Benefit and Improvements 6
Part II — Method of Approtionment 14
Legislative Authority and Provisions 14
Benefit Analysis 15
Assessment Methodology 18
Part Ill — Estimate of Costs 25
Calculation of Assessments 25
District Budgets and Assessments 26
Assessment Range Formula 30
Part IV — District Diagram 31
Part V — Assessment Roil 33
21 of 59 May 15, 2018, Item #4.2
Introduction
Pursuant to the provisions of the Landscape and Lighting Act of 1972, being Part 2 of Division 15
of the California Streets and Highways Code, commencing with Section 22500 (the "1972 Act"),
and in compliance with the substantive and procedural requirements of Article XIII D, section 4 of
the California State Constitution (the "California Constitution") and the Proposition 218 Omnibus
Implementation Act (the "Omnibus Act"), being Government Code section 53750 et seq., the City
Council of the City of Poway, County of San Diego, State of California (the "City"), propose to
form a special benefit assessment district to be designated as:
Landscape Maintenance District No. 18-2
(the "District"), to provide and maintain various local landscaping improvements within the
boundaries of the District that provide special benefits to properties therein.
To adequately provide and fund the landscaping improvements, appurtenant facilities and related
expenses within the District, the City Council has determined that it is appropriate and in the
public's best interest to form the District, and to levy annual assessments on the County tax rolls
for the benefit of properties therein commencing in Fiscal Year 2018/2019 to fund the estimated
special benefit improvement costs that are considered necessary to maintain and service the
improvements. The detailed plans and specifications for the landscaping improvements to be
provided and funded in whole or in part by the District assessments are on file in the Office of
Public Works of the City of Poway and by reference these plans and specifications are made part
of this Report. The improvements to be provided by the District and the assessments described
herein are made pursuant to the 1972 Act, the provisions of the California Constitution, and the
Omnibus Act; and the District shall incorporate each parcel that will receive special benefits from
those improvements.
This Engineer's Report (the "Report") has been prepared pursuant to Chapter 1, Article 4 of the
1972 Act and the California Constitution, and presented to the City Council for its consideration
and approval of the improvements to be provided within the District and the levy and collection of
the assessments related thereto to fund the special benefit costs and expenses required to
service and maintain the designated improvements within the District commencing in Fiscal Year
2018/2019. If any section, subsection, sentence, clause, phrase, portion, zone, or subzone of this
Report is, for any reason, held to be invalid or unconstitutional by the decision of any court of
competent jurisdiction, such decision shall not affect the validity of the remaining provisions of the
Report and each section, subsection, subdivision, sentence, clause, phrase, portion, zone, or
subzone thereof, irrespective of the fact that any one or more sections, subsections, sentences,
clauses, phrases, portions, zones, or subzones might subsequently be declared invalid or
unconstitutional.
This Report outlines the District structure, the improvements, and the proposed assessments to
be levied in connection with the special benefits the properties within the District will receive from
the maintenance and servicing of the District improvements. In accordance with the 1972 Act, the
District utilizes benefit zones ("Zones") to address variations in the nature, location, and extent of
the improvements that provide special benefits to various developments and parcels within the
District. The annual assessments to be levied on properties within the District will provide a
funding source for the continued operation and maintenance of the landscaping improvements
and appurtenant facilities within the District and each Zone established herein. The net annual
cost to provide the improvements associated with each Zone are allocated to the benefiting
properties within that Zone using a weighted method of apportionment (refer to Assessment
Methodology in Part II, Method of Apportionment) that calculates the proportional special benefit
22 of 59 May 15, 2018, Item #4.2
and assessment for each parcel as compared to other properties that benefit from the District
improvements and services.
The estimated cost of the improvements and the proposed annual assessments budgeted and
assessed against properties each fiscal year within the District and each respective Zone may
include, but are not limited to the estimated expenditures for regular annual maintenance and
repair of the landscaping and related facilities; incidental expenditures related to the operation
and administration of the District; the collection of funds for operational reserves; the collection of
funds to support periodic maintenance projects, rehabilitation projects and/or other capital
improvement projects; deficits or surpluses from prior fiscal years; and revenues from other
sources as authorized by the 1972 Act. Each parcel is to be assessed proportionately for only
those improvements, services and expenses for which the parcel will receive special benefits.
After formation of this District, in each subsequent fiscal year, the City shall establish the District's
assessments based on an estimate of the costs to maintain, operate and service the
improvements, including funding needed for capital improvement projects for that fiscal year and
available revenues including fund balances, general benefit contributions, any additional City
• contributions, and the assessment limits established herein.
The word "parcel," for the purposes of this Report, refers to an individual property assigned its
own Assessor's Parcel Number ("APN") by the San Diego County Assessor's Office. The San
Diego County Auditor/Controller uses Assessor's Parcel Numbers and specific Fund Numbers to
identify properties to be assessed on the tax roll for the District assessments.
Ballot Proceedings
Pursuant to the provisions of Article XIIID, Section 4 of the California Constitution and the
Omnibus Act, the City shall conduct a property owner protest ballot proceeding ("Ballot
Proceeding") for the proposed levy of new assessments as described in this Report. In
conjunction with this Ballot Proceeding, the City Council will conduct a noticed public hearing to
consider public testimonies, comments, and written protests regarding the formation of the District
and the establishment of the proposed assessments. Upon conclusion of the public hearing,
property owner protest ballots received will be opened and tabulated to determine whether a
majority protest exists as defined in Article XIIID of the California Constitution and the Omnibus
Act.
"A majority protest exists if, upon the conclusion of the hearing, ballots submitted in opposition to
the assessment exceed the ballots submitted in favor of the assessment. In tabulating the ballots,
the ballots shall be weighted according to the proportional financial obligation of the affected
property."
After completion of the ballot tabulation, the City Council will confirm the results of the balloting.
If a majority protest exists for the proposed assessments and the assessment range formula
presented and described herein, further proceedings to form the District and implement the new
assessments shall be abandoned at this time. However, the City Council may continue to levy
and collect annual assessments to support the landscaping improvements currently provided and
funded through Landscape Maintenance District 86-1 at the assessment rates and method of
apportionment previously approved and adopted by the City Council for that District.
If tabulation of the ballots indicate that a majority protest does not exist for the proposed
assessments and the assessment range formula presented and described herein, the City
Council may adopt this Report (as submitted or amended); approve the District Diagram
contained herein; and by resolution order the formation of the District; direct the improvements to
be made; and confirm and approve the levy and collection of the assessments as outlined in this
Report. Upon the successful formation of the District and levy of the Fiscal Year 2018/2019
23 of 59 May 15, 2018, Item #4.2
assessments, the City Council will discontinue the levy of assessments for Landscape
Maintenance District 86-1.
The assessment rates and method of apportionment described in this Report, as approved or
modified by the City Council, establishes the Fiscal Year 2018/2019 maximum assessments for
each Zone which includes an annual inflationary adjustment(referred to as an Assessment Range
Formula), and the assessments to be submitted to the San Diego County Auditor/Controller for
inclusion on the Fiscal Year 2018/2019 property tax roll.
Each subsequent fiscal year, an annual engineer's report for the District shall be prepared and
presented to the City Council to address any proposed changes to the District, Zones,
improvements, budgets, and assessments for that fiscal year. The City Council shall annually hold
a noticed public hearing regarding these matters prior to approving and ordering the levy of
assessments for the upcoming fiscal year. The assessments as approved and ordered will be
submitted to the San Diego County Auditor/Controller for inclusion on the property tax roll for each
affected parcel for that fiscal year. Such assessments shall not exceed the annually adjusted
maximum assessments authorized herein unless the proposed new or increased assessments
are approved by the property owners in a ballot protest proceeding.
Report Content
This Report has been prepared in connection with the formation of Landscape Maintenance
District No. 18-2 and the levy of assessments commencing in Fiscal Year 2018/2019, pursuant to
a resolution of the City Council and consists of five (5) parts:
Part I — Plans and Specifications:
An overall description of the District, Zones, and the general nature, location, and extent of the
improvements for which parcels will be assessed. The assessments as outlined in this Report are
based on the local landscaping improvements and appurtenant facilities within the District that
provide special benefits to the properties within the various Zones, including incidental expenses
authorized pursuant to the 1972 Act. In conjunction with the descriptions of the improvements, a
visual depiction of the landscape improvement areas is provided on the District Diagram
contained in Part IV of this Report. More detailed information regarding the specific plans and
specifications associated with the District improvements are on file in the Public Works
Department and by reference are made part of this Report.
Part II — Method of Apportionment
Provides a discussion of the general and special benefits associated with the various
improvements to be provided within the District(Benefit Analysis), which includes a discussion of
the proportional costs of the special benefits and a separation of costs considered to be of general
benefit and therefore not assessed. This section of the Report also outlines the method of
calculating each property's proportional special benefit necessary to calculate the annual
assessments.
Part Ill — Estimate of Costs
An estimate of the total annual costs to install, operate, maintain, and service the local
landscaping improvements and appurtenant facilities within the District and Zones. The estimated
annual expenses (budget) for each Zone includes an estimate of the maintenance costs and
incidental expenses (as defined in the 1972 Act) including, but not limited to: labor, materials,
24 of 59 May 15, 2018, Item #4.2
utilities, equipment, and administration expenses as well as the collection of other appropriate
funding authorized by the 1972 Act and deemed necessary to fully support the improvements.
Those improvements and/or costs determined to be of general benefit shall be funded by a City
contribution and are excluded from the amount to be assessed as special benefit. The resulting
proposed maximum assessment rate (the "Maximum Assessment Rate Per EBU") identified in
the budget for each Zone establishes the maximum assessment rate for each Zone as of Fiscal
Year 2018/2019 and these maximum assessment rates shall be adjusted annually by the
Assessment Range Formula also described in this section of the Report. The maximum
assessment amount to be balloted for each parcel is calculated based on the initial maximum
assessment rate established for each Zone and the Assessment Methodology described in "Part
II — Method of Apportionment" of this Report.
While not shown as a budgeted expenditure at this time, if the District assessments are approved,
the City Council at its discretion, may provide a temporary advance (loan) to the District to
expedite various capital improvement projects within the District (i.e., repair and rehabilitation of
the improvements). Such loans shall be limited to funding that complies with the provisions of
California State law and shall be paid back to the City through the annual assessments and
available funds collected for CIP and Rehabilitation Funding and/or Operational Reserves.
Ultimately, City staff shall make the determination of which improvements, and the extent of the
services and activities that shall be provided based on available revenues.
Part IV — District Diagram
This section of the Report contains a diagram showing the boundaries of the District and
applicable Zones within the District as of Fiscal Year 2018/2019 which incorporates each of the
parcels that receives special benefits from the various District improvements. This diagram also
provides a visual depiction of the location of the improvements to be maintained. The lines and
dimensions of each lot, parcel, and subdivision of land contained in this diagram are inclusive of
all parcels listed in "Part V – Assessment Roll" of this Report and the corresponding County
Assessor's Parcel Maps for said parcels as they existed at the time this Report was prepared and
shall include all subsequent subdivisions, lot-line adjustments, or parcel changes therein.
Reference is hereby made to the San Diego County Assessor's maps for a detailed description
of the lines and dimensions of each lot and parcel of land within the District.
Part V — Assessment Roll
A listing of all Assessor Parcel Numbers of the properties within the District and each parcel's
corresponding Fiscal Year 18-2019 maximum assessment amount ("Balloted Maximum
Assessment") and assessment amount to be levied and collected for Fiscal Year 2018/2019
("Assessment FY 2018/2019"). The proposed assessment amounts balloted and to be levied and
collected for Fiscal Year 2018/2019 for each parcel is based on the parcel's calculated
proportional special benefit as outlined in the Method of Apportionment (Part II of this Report) and
the annual assessment rate established by the estimated budget for each Zone (Part III of this
Report). Due to the number of parcels within the District, the Assessment Roll shall be filed
electronically with the City Clerk rather than displayed in this Report and by reference the listing
of the Assessor's Parcel Numbers and the corresponding assessment amounts contained in that
electronic file are made part of this Report.
25 of 59 May 15, 2018, Item #4.2
Part I — Plans and Specifications
Description of the District
The District is located within the City of Poway in the north central region of the City, generally
east of the City limits, west of Lake Poway and north of Twin Peaks Road. The territory within the
District consists of the lots or parcels of land shown on the Assessment Diagram contained herein
in "Part IV — District Diagram" of this Report which is inclusive of all parcels listed in "Part V –
Assessment Roll" of this Report and the corresponding County Assessor's Parcel Maps for said
parcels as they existed at the time this Report was prepared.The parcels within the District include
all or a portion of the parcels identified on the following San Diego County Assessor's Parcel
Maps:
Book 273 Page 82
Book 275 Pages 26, 27, 79, and 80
Book 276 Page 07
Book 277 Pages 01, 02, 07, 08, 13, 14, and 17 through 24
Book 278 Pages 06, 17, 28, 32, 33, and 42 through 46
Book 321 Pages 01, 24, 40, and 41
As authorized by the 1972 Act, the improvements to be provided by the District and associated
with each Zone therein incorporate local landscaping improvements and appurtenant facilities
that are maintained and serviced for the benefit of real property within the District. The various
improvements to be maintained by the District have been installed in connection with the
development of properties for the benefit of those properties and/or nearby adjacent
developments, or were otherwise considered necessary or required for the development of
properties within the District to their full and best use. The work to be performed within the District
may include, but is not limited to (as applicable), the personnel; materials; equipment; electricity;
water; contract services; maintenance, repair and rehabilitation of the improvements; and
incidental expenses required to operate the District and provide the improvements and services.
The annual assessments to be levied on properties within the District provide a source of funding
to support the continued operation and maintenance of these improvements that provide a
particular and distinct benefit (special benefit) to those properties. Each parcel shall be assessed
proportionately for only those improvements, services, and expenses for which the parcel
receives special benefits.
The landscape improvements to be funded by the District assessments may include, but are not
limited to: turf; ground cover; shrubs and plants; areas of natural vegetation; trees; irrigation
systems; specific masonry walls, including sound walls and retaining walls; monuments;
hardscapes; trails; and other related appurtenant facilities within the District that have been
dedicated to the City for maintenance including but are not limited to:
median island landscaping and hardscape improvements within the District;
designated streetscape side-panel landscaping adjacent to the streets and properties within
the District, including parkways, slopes and entryways; and
26 of 59 May 15, 2018, Item #4.2
> designated non-street landscaping and/or vegetation management areas, including, but not
limited to, open space areas, greenbelts, and landscaping on the perimeter of basins or
channel ways within the District that are located adjacent to the properties or within the
developments of the District.
The improvement plans and specifications for the District are on file in the Office of Public Works
of the City of Poway and by reference these plans and specifications are made part of this Report.
Zones of Benefit and Improvements
California Constitution article XIII D, section 4(a) requires that an "agency which proposes to levy
an assessment shall identify all parcels which will have a special benefit conferred upon them and
upon which an assessment will be imposed." The 1972 Act further permits the establishment of
assessment districts by agencies for the purpose of providing various landscaping and lighting
improvements, including the acquisition, construction, installation, maintenance, and servicing of
those improvements and related facilities. In addition, to ensure an appropriate allocation of the
estimated costs to provide various improvements based on proportional special benefits,
landscaping and lighting districts often times include benefit zones ("Zones") as authorized
pursuant to Chapter 1 Article 4, Section 22574 of the 1972 Act:
"The diagram and assessment may classify various areas within an assessment district into
different zones where, by mason of variations in the nature, location, and extent of the
improvements, the various areas will receive differing degrees of benefit from the improvements.
A zone shall consist of all territory which will receive substantially the same degree of benefit from
the improvements."
While the California Constitution requires that the "proportionate special benefit derived by each
identified parcel shall be determined in relationship to the entirety of the capital cost of a public
improvement or the maintenance and operation expenses of a public improvement..."; it is
reasonable to conclude that certain landscaping improvements may benefit most, if not all,
properties within a district, while other improvements may only provide special benefits to specific
parcels, developments or portions of the district (particularly in larger districts). In addition, some
improvements within a district and/or a portion of the costs associated with various public
improvements are identified as providing some measure of general benefit and these general
benefit costs are separated, quantified, and not assessed to properties within the district.
This Report has identified all parcels which will have special benefits conferred upon them by the
improvements in the proposed District. In accordance with the 1972 Act, it has been determined
that it is necessary to establish benefit zones (Zones and/or Sub-Zones, hereafter referred to
collectively as"Zones")within this District to appropriately: (1)determine the proportionate special
benefits derived by each identified parcel in relationship to the entirety of the capital cost of the
public improvements, and the maintenance and operation expenses of the public improvements;
and (2) allocate the reasonable cost of the proportional special benefits conferred on each parcel.
The boundaries of each Zone are established based on the location, extent and types of
improvements being maintained through the District as well as the particular and distinct benefits
the various developments and properties derive from those improvements based on proximity to
those specific improvements. While some improvements may be specifically associated with
• specific development areas or parcels within the District, many improvements may reasonably be
considered shared improvements because the overall development of the properties in the area
required or facilitated the installation of those improvements. In such cases, the special benefits
and cost of providing such shared improvements are proportionately allocated to parcels in each
Zone.
27 of 59 May 15, 2018, Item #4.2
The net annual cost to provide the improvements for each Zone are allocated to the benefiting
properties within that Zone using a weighted method of apportionment (refer to Assessment
Methodology in Part Ill - Method of Apportionment)that calculates the proportional special benefit
and assessment for each parcel as compared to other properties that benefit from the District
improvements and services. The following is a brief description and summary of the Zones and
improvements associated within each Zone. A visual depiction of the location and extent of the
improvements and Zone boundaries are provided on the District Diagram provided in Part IV of
this Report.
Zone "A" Parcels and Improvements
Zone "A" Parcels: Comprises all parcels included in Zones A-1 through A-6 (each of which is
described in more detail below) and incorporates that portion of the parcels and developments
within the District located generally east of Cloudcroft Drive and north of Northcrest Lane that are
adjacent to or directly accessed from Espola Road where the District improvements are located.
Zone "A" Shared Improvements (proportionately benefiting parcels in Zones A-1 through
A-6): The arterial landscaping improvements on Espola Road between Cloudcroft Drive and north
of Northcrest Lane provide direct advantages to parcels in Zones A-1 through A-6 (i.e., special
benefits) that affect the assessed parcels in a way that is particular and distinct from their effect
on other parcels and that real property in general and the public at large do not share. The parcels
within Zones A-1 through A-6 are proportionately assessed, in whole or in part, for the for the
special benefits they receive from these improvements. The entirety of the cost of these shared
improvements are allocated to Zones A-1 through A-6 and parcels therein based on each parcel's
proportional special benefit (calculated Equivalent Benefit Unit, "EBU") as outlined in the Method
of Apportionment (Part II of this Report), in relationship to the total (collective) EBU of all the
parcels in Zones A-1 through A-6 that receive special benefits from those improvements. These
shared improvements include, but are not limited to, the following:
110,105 square feet of arterial streetscape landscaping improvements on the north side of
Espola Road from the western boundary of Zone "A" (Zone A-1) which starts just east of
Cloudcroft Drive, east to Westling Court;
20,145 square feet of arterial streetscape landscaping improvements on the north side of
Espola Road between Westling Court and Old Coach Road;
119,080 square feet of arterial streetscape landscaping improvements on the east and north
sides of Espola Road between Old Coach Road and Country Day Road;
• 104,400 square feet of arterial streetscape landscaping improvements on the east side of
Espola Road between Country Day Road and Morning Air Road;
• 50,545 square feet of arterial streetscape landscaping improvements on the east side of
Espola Road between Morning Air Road and Lake Poway Road;
• 86,675 square feet of arterial streetscape landscaping improvements on the east side of
Espola Road between Lake Poway Road and Trailwind Road;
• 55,775 square feet of arterial streetscape landscaping improvements on the east side of
Espola Road between Trailwind Road and Sandhill Road;
• 56,210 square feet of arterial streetscape landscaping improvements on the east side of
Espola Road between Sandhill Road and Bounty Way;
• 66,665 square feet of arterial streetscape landscaping improvements on the east side of
Espola Road between Bounty Way and Eden Grove;
28 of 59 May 15, 2018, Item # 4.2
• 68,710 square feet of arterial streetscape landscaping improvements on the east side of
Espola Road between Eden Grove and the southern boundary of the District and Zone A-3;
• 8,170 square feet of arterial streetscape landscaping improvements on the south side of
Espola Road from the western boundary of Zone "A" (Zone A-4) on the south side of Espola
Road, east to Bridlewood Road;
• 307,985 square feet of arterial streetscape landscaping improvements on the west and south
sides of Espola Road between Bridlewood Road and Lake Poway Road;
• 47,625 square feet of arterial streetscape landscaping improvements on the west side of
Espola Road between Lake Poway Road and Summer Sage Road; This improvement area
includes the corner return on the south side of Lake Poway Road between Espola Road and
Summer Sage Road;
• 8,675 square feet of arterial streetscape landscaping improvements on the west side of Espola
Road between Summer Sage Road and Poway High School;
• 44,705 square feet of arterial streetscape landscaping improvements on the west side of
Espola Road between Titan Way and Willow Ranch Road; and
> 2,285 square feet of arterial streetscape landscaping improvements on the west side of Espola
Road between Willow Ranch Road and the southern boundary of the District and Zone A-3;
Zone A-1
Zone A-1 Parcels: Comprises that portion of the developments and parcels within the District
and Zone "A" located along the north and northeast side of Espola Road generally east of
Cloudcroft Drive and north of Country Day Road. Zone A-1 incorporates parcels within Parcel
Maps 10783, & 17433; Tracts 13339 & 13435; and various other surrounding properties. The
parcels in Zone A-1 include all or a portion of the parcels identified on the San Diego County
Assessor's Parcel Maps: Book 277 Pages 14, 17, 18, and 19; and Book 278 Page 32.
Zone A-1 Specific Improvements (proportionately benefiting parcels in Zone A-1 only): The
parcels within this Zone receive special benefits and are proportionately assessed, in whole or in
part, for the Zone "A" Shared Improvements previously identified. There are no improvements
identified as Zone A-1 Specific Improvements at this time.
Zone A-2
Zone A-2 Parcels: Comprises that portion of the developments and parcels within the District
and Zone "A" located north and northeast of Espola Road that generally access Espola Road
from Old Coach Road or located east of Espola Road and Lake Poway that generally access
Espola Road from Lake Poway Road. Zone A-2 incorporates primarily developments and
undeveloped properties that are not directly adjacent to the improvements on Espola Road and
incorporates parcels in Parcel Maps 01648, 04152, 05890, 05920, 09452, 11135, 12471, 17989,
19449, 19623, &20842;Tracts 11360, 13708, 14143, 14388, 14627, 15725, & 15808; and various
other surrounding properties. The parcels in Zone A-2 include all or a portion of the parcels
identified on the San Diego County Assessor's Parcel Maps: Book 276 Page 07; Book 277 Pages
01, 02, 07, 08, 13, 14, 17, and 20 through 24; and Book 278 Pages 06, 28, 32, and 33.
Zone A-2 Specific Improvements (proportionately benefiting parcels in Zone A-2 only): The
parcels within this Zone receive special benefits and are proportionately assessed, in whole or in
part, for the Zone "A" Shared Improvements previously identified. There are no improvements
identified as Zone A-2 Specific Improvements at this time.
29 of 59 May 15, 2018, Item #4.2
Zone A-3
Zone A-3 Parcels: Comprises that portion of the developments and parcels within the District
and Zone "A" located east of Espola Road generally between Country Day Road and Northcrest
Lane and west of Espola Road generally south of Poway High School and north of Northcrest
Lane. Zone A-3 incorporates developments and properties considered to be adjacent or in close
proximity to the improvements on Espola Road. Zone A-3 incorporates parcels within Parcel Maps
12585 & 15384; Tracts 10535, 11360, 11361, & 12044; and various other surrounding properties.
The parcels in Zone A-3 include all or a portion of the parcels identified on the San Diego County
Assessor's Parcel Maps: Book 278 Pages 28, 42, 43, 45, and 46.
Zone A-3 Specific Improvements (proportionately benefiting parcels in Zone A-3 only): The
parcels within this Zone receive special benefits and are proportionately assessed, in whole or in
part, for the Zone "A" Shared Improvements previously identified, but are also proportionately
assessed, in whole or in part, for the special benefits they receive from Zone A-3 Specific
Improvements. These Zone-Specific Improvements provide direct advantages to parcels within
Zone (i.e., special benefits) that affect the assessed parcels in a way that is particular and distinct
from their effect on other parcels and that real property in general and the public at large do not
share. These improvements include, but are not limited to, approximately:
> 630 square feet of non-arterial entryway median landscaping improvements on Country Day
Road east of Espola Road;
• 665 square feet of non-arterial entryway median landscaping improvements on Morning Air
Road east of Espola Road;
• 305 square feet of non-arterial entryway median landscaping improvements on Trailwind
Road east of Espola Road;
• 16,260 square feet of non-arterial streetscape landscaping improvements on the east side of
Sunset Drive south of Wildgrove Road;
• 305 square feet of non-arterial entryway median landscaping improvements on Sandhill Road
east of Espola Road;
• 890 square feet of non-arterial entryway median landscaping improvements on Bounty Way
east of Espola Road;
> 300 square feet of non-arterial entryway median landscaping improvements on Eden Grove
east of Espola Road;
• 365 square feet of non-arterial streetscape entryway landscaping improvements on the
northwest corner of Willow Ranch Road and Espola Road;
• 215 square feet of non-arterial entryway median landscaping improvements on Willow Ranch
Road west of Espola Road; and
• 315 square feet of non-arterial streetscape entryway landscaping improvements on the
southwest corner of Willow Ranch Road and Espola Road.
30 of 59 May 15, 2018, Item #4.2
Zone A-4
Zone A-4 Parcels: Comprises that portion of the developments and parcels within the District
and Zone "A" located south and west of Espola Road, east of Zone A-5, and generally north of
Titan Way. Zone A-3 incorporates developments and properties considered to be adjacent or in
close proximity to the improvements on Espola Road, including parcels within Parcel Maps 05173,
09766, 10795, 11442, 11710, 15800, 16946, 18451, & 18911; Tracts 10432, 10535, 11320,
11396, & 14087; and various other surrounding properties. The parcels in Zone A-4 include all or
a portion of the parcels identified on the San Diego County Assessor's Parcel Maps: Book 275
Page 75; and Book 278 Pages 17, 44, and 45.
Zone A-4 Specific Improvements (proportionately benefiting parcels in Zone A-4 only): The
parcels within this Zone receive special benefits and are proportionately assessed, in whole or in
part, for the Zone "A" Shared Improvements previously identified, but are also proportionately
assessed, in whole or in part, for the special benefits they receive from Zone A-4 Specific
Improvements. These Zone-Specific Improvements provide direct advantages to parcels within
Zone (i.e., special benefits) that affect the assessed parcels in a way that is particular and distinct
from their effect on other parcels and that real property in general and the public at large do not
share. These improvements include, but are not limited to, approximately:
• 310 square feet of non-arterial entryway median landscaping improvements on Bridlewood
Road south of Espola Road;
• 25,815 square feet of non-arterial median landscaping improvements on Woodland Parkway
east of Summer Sage Road;
> 2,130 square feet of non-arterial streetscape landscaping improvements on the north side of
Lake Poway Road between Espola Road & Summer Sage Road;
> 3,910 square feet of non-arterial streetscape landscaping improvements on the north side of
Lake Poway Road between Summer Sage Road & Prairie Vista Road;
• 8,095 square feet of non-arterial streetscape landscaping improvements on the north and
west sides of Lake Poway Road between Prairie Vista Road and Bromegrass Court;
• 3,385 square feet of non-arterial streetscape landscaping improvements on the northwest side
of Lake Poway Road between Bromegrass Court and Zone A-5 which is the western boundary
of Zone A-4;
• 17,300 square feet of non-arterial streetscape landscaping improvements on the south side
of Lake Poway Road between Espola Road & Summer Sage Road;
> 4,930 square feet of non-arterial streetscape landscaping improvements on the south side of
Lake Poway Road between Summer Sage Road and Prairie Vista Road;
• 710 square feet of non-arterial streetscape landscaping improvements on the east side of
Summer Sage Road at the open space area between Dogwood Road and Riverbend Road;
• 1,705 square feet of non-arterial streetscape landscaping improvements on the west side of
Summer Sage Road at the open space area between Dogwood Road and Riverbend Road;
6,480 square feet of non-arterial streetscape landscaping improvements on the northwest side
of Rock Creek Road, southwest of Summer Sage Road;
• 5,185 square feet of non-arterial streetscape landscaping improvements on the southeast
corner of Rock Creek Road and Summer Sage Road;
• 315 square feet of non-arterial entryway median landscaping improvements on Summer Sage
Road west of Espola Road;
31 of 59 May 15, 2018, Item #4.2
• 8,510 square feet of non-arterial streetscape landscaping improvements on the east side of
Riparian Road between Titan Way and Oak Stand Road (adjacent to High School); and
• 44,035 square feet of non-arterial streetscape landscaping improvements on south side of
Titan Way between Espola Road and Riparian Road, across from Poway High School.
Zone A-5
Zone A-5 Parcels: Comprises that portion of the developments and parcels within the District
and Zone "A" located north and south of West Poway Road, generally west of Espola Road and
Zone A-4, and east of Zone A-6. Zone A-5 incorporates properties within Tracts 11914, 12466, &
12467 which are part of a homeowner's association. The parcels in Zone A-5 include all or a
portion of the parcels identified on the San Diego County Assessor's Parcel Map Book 275 Page
75.
Zone A-5 Specific Improvements (proportionately benefiting parcels in Zone A-5 only): The
parcels within this Zone receive special benefits and are proportionately assessed, in whole or in
part, for the Zone "A" Shared Improvements previously identified. Additionally, these parcels also
receive special benefits from landscaping improvements on Lake Poway Road that were installed
as part of the development of Tracts 11914, 12466, & 12467 and provide direct advantages to
parcels within the Zone (i.e., special benefits) that affect these parcels in a way that is particular
and distinct from their effect on other parcels and that real property in general and the public at
large do not share. Although the improvements on Lake Poway Road adjacent to this Zone are
identified as being part of the District improvements, pursuant to an agreement with the
homeowner's association for these developments, these Zone A-5 Specific Improvements are
currently being maintained by the homeowner's association rather than the City and therefore the
parcels in this Zone will not be assessed through the District for these Zone-Specific
Improvements in Fiscal Year 2018/2019. However, because these improvements may be turned
over to the City for maintenance in subsequent fiscal years, for purposes of establishing the
maximum assessment rate and assessments for Zone A-5, the cost of providing these Zone-
Specific Improvements has been included in the Zone budget and assessment amounts being
balloted for parcels in Zone A-5. These Zone A-5 Specific Improvements include, but are not
limited to, approximately:
• 9,615 square feet of non-arterial streetscape landscaping improvements on the north and
northwest side of Lake Poway Road from the eastern boundary of Tract 11914 to El Camino
Entrada (Currently HOA Maintained);
> 6,185 square feet of non-arterial streetscape landscaping improvements on the north and
northwest side of Lake Poway Road from the western boundary of Tract 11914 to El Camino
Entrada (Currently HOA Maintained);
• 18,710 square feet of non-arterial streetscape landscaping improvements on the south and
southeast side of Lake Poway Road from the eastern boundary of Tract 12467 to El Camino
Entrada (Currently HOA Maintained); and
• 11,385 square feet of non-arterial streetscape landscaping improvements on the south and
southeast side of Lake Poway Road from the western boundary of Tract 12467 to El Camino
Entrada (Currently HOA Maintained).
If the HOA does not maintain the Zone A-5 Specific Improvements in the future, the City may levy
the maximum assessment on the properties for each fiscal year thereafter.
32 of 59 May 15, 2018, Item # 4.2
Zone A-6
Zone A-6 Parcels: Comprises that portion of the developments and parcels within the District
and Zone"A" located west of Espola Road and Zone A-5 that generally access Espola Road from
Lake Poway Road. Zone A-6 incorporates subdivided residential properties that are not directly
adjacent to the improvements on Espola Road and include parcels within Tracts 11974 & 12331.
The parcels in Zone A-6 include all or a portion of the parcels identified on the San Diego County
Assessor's Parcel Maps: Book 275 Pages 26, and 80.
Zone A-6 Specific Improvements (proportionately benefiting parcels in Zone A-6 only): The
parcels within this Zone receive special benefits and are proportionately assessed, in whole or in
part, for the Zone "A" Shared Improvements previously identified. There are no improvements
identified as Zone A-6 Specific Improvements at this time.
Zone B Parcels and Improvements
Zone B Parcels: Zone B is comprised of a single non-residential church property located at the
southeast corner of Espola Road and Twin Peaks Road. Zone B incorporates the development
identified as Tract 09766, comprised of a single parcel identified by the San Diego County
Assessor's Office as Assessor's Parcel Number 321-243-01.
Zone B Improvements: The improvements within this Zone provide direct advantages to the
parcel within this Zone (i.e., special benefits) that affect the parcel in a way that is particular and
distinct from their effect on other parcels and that real property in general and the public at large
do not share. This Zone B parcel receives special benefits from landscaping improvements
installed as part of the development of the property. The landscaping improvement area
incorporates approximately 3,865 square feet of arterial streetscape landscaping improvements
on the east side of Espola Road from Twin Peaks Road to the southern lot line of the parcel.
Pursuant to an agreement with the property owner, this Zone-Specific Improvement area is
currently being maintained by the property owner rather than the City and therefore the parcel in
this Zone will not be assessed through the District in Fiscal Year 2018/2019. However, because
these improvements may be turned over to the City for maintenance in subsequent fiscal years,
for purposes of establishing the maximum assessment rate and assessments for Zone B, the cost
of providing these Zone B Specific Improvements has been included in the Zone budget and
assessment amount being balloted for the Zone.
If the property owner does not maintain the Zone B Specific Improvements in the future, the City
may levy the maximum assessment on the properties for each fiscal year thereafter.
Zone C Parcels and Improvements
Zone C Parcels: Zone C is comprised of the residential properties within Parcel Maps 10915 &
19100; and Tracts 11802& 12401 located on the south side of Del Poniente Road, generally east
of Espola Road. This Zone includes parcels identified on the San Diego County Assessor's Parcel
Maps Book 321 Pages 01, 40, and 41.
Zone C Improvements: The improvements within this Zone provide direct advantages to parcels
within the Zone (i.e., special benefits) that affect the assessed parcels in a way that is particular
and distinct from their effect on other parcels and that real property in general and the public at
large do not share. The parcels within this Zone receive special benefits and are proportionately
assessed, in whole or in part, for Zone C Specific Improvements (Zone C only improvements),
that include, but are not limited to, approximately:
2,970 square feet of non-arterial streetscape landscaping improvements on the south side of
Del Poniente Road between Espola Road and Huntington Court;
33 of 59 May 15, 2018, Item #4.2
4,900 square feet of non-arterial streetscape landscaping improvements on the south side of
Del Poniente Road between Huntington Court and Huntington Gate Drive;
12,435 square feet of non-arterial streetscape landscaping improvements on the south side
of Del Poniente Road between Huntington Gate Drive and the western boundary of Tract
11802;
> 435 square feet of non-arterial entryway median landscaping improvements on Huntington
Gate Drive south of Del Poniente Road;
945 square feet of non-arterial streetscape entryway landscaping on the southeast corner
Huntington Gate Drive and Del Poniente Road; and
> 1,055 square feet of non-arterial streetscape entryway landscaping on the southwest corner
Huntington Gate Drive and Del Poniente Road.
Zone D Parcels and Improvements
Zone D Parcels: Zone D is comprised of the residential properties within Tract 12429 located on
the north side of Espola Road, generally east of the City limits and west of Valle Verde Road. This
Zone includes parcels identified on the San Diego County Assessor's Parcel Maps Book 273
Page 73.
Zone D Improvements: The improvements within this Zone provide direct advantages to parcels
within the Zone (i.e., special benefits) that affect the assessed parcels in a way that is particular
and distinct from their effect on other parcels and that real property in general and the public at
large do not share. The parcels within this Zone receive special benefits and are proportionately
assessed, in whole or in part, for Zone Specific Improvements (Zone D only improvements), that
include, but are not limited to, approximately:
> 8,900 square feet of arterial streetscape landscaping improvements on the north side of
Espola Road adjacent to Tract 12429, west of Valle Verde Road;
> 44,260 square feet of non-streetscape landscaping improvements (Trail/Greenbelt area)
located along the western and southern boundaries of Tract 12429;
34 of 59 May 15, 2018, Item #4.2
Part II — Method of Apportionment
Legislative Authority and Provisions
1972 Act
The 1972 Act permits the establishment of assessment districts by agencies for the purpose of
providing certain public improvements, including the acquisition, construction, installation and
servicing of landscaping and lighting improvements and related facilities. The 1972 Act requires
that the cost of these improvements be levied according to benefit rather than assessed value:
Section 22573 defines the net amount to be assessed as follows:
"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."
Section 22574 provides for zones as follows:
"The diagram and assessment may classify various areas within an assessment district into
different zones where, by mason of variations in the nature, location, and extent of the
improvements, the various areas will receive differing degrees of benefit from the improvements.
A zone shall consist of all territory which will receive substantially the same degree of benefit from
the improvements."
The formulas used for calculating assessments and the designation of Zones as established
herein reflect the composition of parcels within the District and the improvements and activities to
be provided, and have been designed to fairly apportion the cost of providing those improvements
based on a determination of the proportional special benefits to each parcel, consistent with the
requirements of the 1972 Act and the provisions of Article XIII D of the California Constitution.
California Constitution
The costs to operate and maintain the District improvements are identified and allocated to
properties within each Zone of the District based on the special benefits conferred. The
improvements provided and for which properties are to be assessed are identified as local
landscaping improvements and related amenities that were installed in connection with the
development of the properties and/or would otherwise be required for the development of
properties within each respective Zone. The District assessments and method of apportionment
are based on the premise that these improvements would otherwise not have been installed and
maintained by the City. The improvements were installed as part of the development or planned
development of the parcels within the District. The types of improvements and level of
maintenance of the improvements are greater than what the City otherwise installs, maintains,
and funds elsewhere in the City.
Article XIII D Section 2(d) defines District as follows:
District means an area determined by an agency to contain all parcels which will receive a
special benefit from a proposed public improvement or property-related service";
Article XIII D Section 2(i) defines Special Benefit as follows:
"Special benefit" means a particular and distinct benefit over and above general benefits
conferred on real property located in the district or to the public at large. General enhancement of
property value does not constitute "special benefit."
35 of 59 May 15, 2018, Item # 4.2
Article XIII D Section 4(a) defines proportional special benefit assessments as follows:
"An agency which proposes to levy an assessment shall identify all parcels which will have a
special benefit conferred upon them and upon which an assessment will be imposed. The
proportionate special benefit derived by each identified parcel shall be determined in relationship
to the entirety of the capital cost of a public improvement, the maintenance and operation
expenses of a public improvement, or the cost of the property related service being provided. No
assessment shall be imposed on any parcel which exceeds the reasonable cost of the
proportional special benefit conferred on that parcel."
Benefit Analysis
The improvements provided by this District and for which properties will be assessed have been
identified as necessary, desired and/or required for the orderly development of the properties
within the District to their full potential, consistent with the development plans and applicable
portions of the City's General Plan.
Special Benefits
The ongoing maintenance of landscaped areas within the District will provide aesthetic benefits
to the properties within the District and each respective Zone therein, and are intended to provide
a more pleasant environment to walk, drive, live, and work. The primary function of these
improvements and related amenities is to serve as an aesthetically pleasing enhancement and
green space for the benefit of the immediate surrounding properties and developments for which
the improvements were constructed and installed, and/or were facilitated by the development or
potential development of properties within the District. These improvements are an integral part
of the physical environment associated with the parcels in the District and while some of these
improvement's may in part be visible to properties outside the District and/or the respective Zones,
collectively, if these improvements are not properly maintained, it is the parcels within the District
and/or the respective Zones that would be aesthetically burdened. Additionally, these landscape
improvements provide visually pleasing open space areas and green spaces that serve as an
extension of the physical attributes of the parcels assessed, such as their front or rear yards and
may also provide a greater opportunity for recreation as well as serving as a physical buffer and/or
sound reduction buffer between the roadways and the properties in the District. Thus, the
maintenance of these landscaped improvements provides advantages to the assessed properties
that affect the assessed parcels in a way that is particular and distinct from their effect on other
parcels and that real property in general and the public at large do not share.
Collectively these landscaping improvements and related amenities which are funded by the
special benefit assessments, enhance the overall use, presentation, enjoyment, recreational
access, and marketability of the properties, and ensure the long-term cost-efficiency of services
that are obtained through the City provided maintenance (economy of scale).
General Benefit
Calculated(Direct) General Benefit
In reviewing the location and extent of the specific landscaped areas and improvements to be
funded by District assessments and the proximity and relationship to properties to be assessed,
it is evident these improvements have been installed as part of the development of properties
within the District or are improvements that would otherwise be shared by and/or required for
development of those properties.Although the District improvements are located on public streets
or public areas that are typically visible and/or accessible to the general public, it is evident that
36 of 59 May 15, 2018, Item #4.2
the ongoing maintenance of these improvements are only necessary for the appearance and
advantage of the properties within the District that are directly associated with those
improvements and these improvements (particularly the level of maintenance and servicing) are
not required nor associated with any properties outside the District and/or the respective Zones.
It is also evident that: (1) the maintenance of these improvements and the level of maintenance
provided, has a direct and particular advantage (i.e., special benefit) only on those properties in
close proximity to those improvements including those developments and properties that are
directly accessed from the streets where the improvements are located; and (2) such
maintenance beyond that which is required to ensure the safety and protection of the general
public and property in general, limits any indirect or incidental benefit that the public at large or
properties outside each respective Zone receive from the improvements.
In the absence of a special funding Zone, these types of improvements would not have been
installed by the City and the City's maintenance of these improvements would for the most part,
be limited to tree management services necessary to ensure public safety and protection of
property, weed abatement, rodent control, and erosion control services for the various landscape
areas that are provided elsewhere in the City. This basic or baseline level of service would
typically provide for periodic servicing of these areas on an as-needed basis. This baseline level
of service, which is provided elsewhere in the City, would provide for public safety and essential
property protection to avoid negative impacts on adjacent roadways and vehicles traveling on
those roadways and potential property damage. However, this baseline level of service results in
a far less visually pleasing environment than is created with the enhanced levels of services
associated with the regular landscape maintenance that can be provided through the District
assessments.
On average, the cost to provide this baseline level of service for the District's streetscape
landscape areas is estimated to be approximately $1,120 per acre (approximately $0.0257 per
square foot) and approximately $670 per acre (approximately $0.0154 per square foot) for non-
streetscape landscape areas, including a five percent (5%) cost factor for City overhead and
administration.
indirect(incidental) General Benefits
In addition to the general benefit identified above, it is recognized that there are indirect or
incidental general benefits to properties within the District as well as the general public that are
associated with regular landscape maintenance services, including:
Minimization of dust and debris; and
Decreased potential water runoff from both properties and the landscaped areas.
Although these types of benefits might best be characterized as indirect consequences of the
special benefits of the landscape maintenance provided to assessed parcels, for the purposes of
calculating proportional benefits, we assume these types of benefits to be general benefits. It is
apparent that trees, shrubs, plants, and other vegetation and groundcover reduce dust, debris,
and potential water runoff that might otherwise occur if such landscape improvements did not
exist. However, it is also recognized that with the regular maintenance of the landscape
improvements, the effort and cost to monitor and address these issues are reduced to isolated
areas and/or less frequent servicing, and these activities, generally represent less than one
percent (1%) of the overall landscape maintenance costs. Therefore, conservatively, weestimate
that the costs associated with these indirect and incidental benefits do not exceed one percent
(1%) of the annual maintenance expenditures for the landscaping improvements.
37 of 59 May 15, 2018, Item #4.2
Likewise. it is recognized that the arterial streets within the District are routinely traveled by the
general public and other property owners within the City. While the landscape improvements
along these arterial streets do not provide a special benefit to properties outside the District, these
particular improvements inherently reflect the overall aesthetic appearance of that region of the
City and thus provide some measure of indirect general benefit to all properties in the City. It is
estimated that the arterial landscape improvements in this District represent approximately fifteen
percent (18%) of the overall landscaping maintained by the City on its arterial streets and main
thoroughfares. However. it is also recognized that traffic on these arterials and main
thoroughfares tend to be regional in nature. largely serving the properties that directly access
those streets (such as the properties within the District), and to a lesser extent. persons and
properties in the various regions or outside of the City where the arterial streets are located (i.e..
persons from outside the District that might regularly drive by the District improvements on Espola
Road and whose property is located in the north central portion of the City not the southern portion
of the City or outside of the City). Therefore. it is reasonable to conclude that less than fifty percent
(50%) of the properties in the City would routinely drive past the District improvements and derive
some measure of indirect general benefit from the District improvements. Based on these facts,
we have determined that approximately nine percent (18% x 50% = 9.0%) of the cost to maintain
the arterial landscape improvements within the District would be considered an indirect and
incidental benefit (i.e. general benefit). However. for purposes of quantifying the proportional
general benefit costs. ten percent(10%) of the annual maintenance expenditures for these arterial
landscape improvements shall be applied as General benefit costs and not assessed to properties
in the District Therefore. in addition to the one percent indirect or incidental general benefit costs
identified above. the City will contribute an additional ten percent (10%) of the annual
maintenance expenditures associated with the arterial landscape improvements.
The baseline general benefit costs and the indirect/incidental general benefit costs identified
above shall be excluded from the special benefit assessment funding and not assessed to the
parcels within the District. The total calculated general benefit cost for the landscaping
improvements associated with each Zone is summarized in the following table and is also
identified in the budgets contained in Part III of this Report.
Estimated General Benefit Costs (Not Assessed)
Total Annual Calculated Indirect Total General
Zone Expenses (Direct) General (Incidental) Benefit Cost
Benefit General Benefit
Zone A-1 $40.974 ($2,546) ($3,219) ($5,765)
Zone A-2 $65,313 ($4,059) ($5,131) ($9,190)
Zone A-3 $195.195 ($12,160) ($14.775) ($26.935)
Zone A-4 $205.044 ($12,958) ($12.504) ($25,462)
Zone A-5 S46,127 ($2.887) ($2,294) ($5,181)
Zone A-6 $10,049 ($624) ($790) ($1,414)
Zone B $1.703 ($99) ($141) ($240)
Zone C $9,134 ($585) ($68) ($653)
Zone D $14,286 ($912) ($371) ($1,283)
Total $587,825 ($36,830) ($39,293) ($76,123)
38 of 59 May 15, 2018, Item # 4.2
As with many maintenance costs, the General Benefd Costs shown above may be impacted by
inflation in subsequent fiscal years, and the General Benefd Cost contributions may be adjusted for
inflation accordingly.
Assessment Methodology
Upon the successful formation of this District, the City proposes to annually levy and collect
special benefit assessments commencing in Fiscal Year 2018/2019 to fund the operation,
maintenance and servicing of the improvements that provide special benefits to parcels within the
District. The estimated annual cost to operate, maintain, and service each of the District
improvements for Fiscal Year 2018/2019 are identified in the budget section of this Report (Part
III of this Report). For Zone A-5 and Zone B, the budgets reflect the estimated annual costs to
maintain all the improvements associated with those Zones, but since all or a portion of the
improvements are currently being maintained by the HOA or property owner, the actual
assessments for Fiscal Year 2018/2019 will be less. Refer to the budget footnotes in the budget
section of this Report (Part III of this Report).
To calculate and identify the proportional special benefit received by each parcel and ultimately
each parcel's proportionate share of the improvement costs it is necessary to consider not only
the improvements and services to be provided, but the relationship each parcel has to those
improvements as compared to other parcels in the District
Article XIIID Section 4(a) reads in part:
"...The proportionate special benefit derived by each identified parcel shall be determined in
relationship to the entirety of the capital cost of a public improvement or the maintenance and
operation expenses of a public improvement or for the cost of the property related service being
provided. No assessment shall be imposed on any parcel which exceeds the reasonable cost of
the proportional special benefit conferred on that parcel."
Landscaping improvements like most public improvements, provide varying degrees of benefit
(whether they be general or special) based largely on the nature and extent of such
improvements, and the location of the improvements in relationship to properties associated with
those improvements. To establish the proportional special benefit and ultimately the assessment
obligation for each parcel, these factors need to be addressed and formulated in the method of
apportionment by the use of benefit zones that reflect the extent and location of the improvements
in relationship to the properties, as well as the specific use of the property and characteristics that
reflects each parcel's proportional special benefit as compared to other properties that benefit
from those same improvements.
The method of apportionment(method of assessment) developed for this District is based on the
premise that each property to be assessed receives a particular and distinct benefit (special
benefit) from the improvements, services and facilities to be financed by the District assessments
and to proportionately assess benefits it is necessary to calculate each property's relative share
of the special benefits conferred by the funded improvements and services. The Equivalent
Benefit Unit(EBU) method of assessment apportionment is utilized in this District and establishes
a basic unit of benefit (base value) and then calculates the benefit derived by each assessed
parcel as a multiple (or a fraction) of that basic unit. This EBU method of apportioning special
benefits is typically seen as the most appropriate and equitable assessment methodology for
districts formed under the 1972 Act, as the benefit to each parcel from the improvements are
apportioned as a function of comparable property characteristics. The base value and
assessment formula utilized in each Zone may be different, but is established for each Zone to
39 of 59 May 15, 2018, Item #4.2
reflect the improvements and properties that benefit from those improvements utilizing property
characteristics that may include, but is not limited to, the type of development (property land use),
property's development status, the proximity of the property to the improvements, and size of the
property (acreage or units).
For the purposes of this Engineer's Report, an EBU is the quantum of benefit derived from the
various Zone improvements by a single family residential parcel. The single family residential
parcel has been selected as the basic value for calculation of assessments since this land use
represents over 92% of the benefiting parcels in the District. Thus, the "benchmark" property (the
single family residential parcel) derives one EBU of benefit and is assigned 1.00 EBU.
The following outlines the land use classifications that are associated with or may be associated
with the parcels in the District and the proportional EBUs established for those land use
classifications.
Land Use Classifications
Residential Single-Family -- This land use classification is defined as a fully subdivided
developed residential property assigned an Assessor's Parcel Number with a single residential
unit on the property. As previously noted, the single family residential parcel has been selected
as the basic value for calculation of assessments and are assigned 1.00 EBU. However, the
parcels in Zones A-2, A-5, and A-6 are assigned a reduced special benefit (20% EBU reduction)
in recognition of their reduced proximity to the improvements shared with properties in Zones A-
1, A3 and A-4. Therefore, Residential Single-Family parcels in Zones A-2, A-5, and A-6 are
assigned 0.80 EBU.
Multi-Family Residential -- This land use classification is defined as properties that are
residential, but contain more than a single residential unit on the parcel (parcels with more than
one dwelling), including apartments, duplexes, or other multi-unit structures. Due in part to the
development and population densities associated with these types of dwelling units (reduced unit
size compared to the typical density and size of single-family properties), studies have
consistently shown that the average multi-unit development (apartments) impacts infrastructure
approximately 75% as much as a single-family residence. (Sources: Institute of Transportation
Engineers Informational Report Trip Generation, Fifth Edition, 1991; Metcalf and Eddy,
Wastewater Engineering Treatment, Disposal, Reuse, Third Edition, 1991). Therefore, it is
reasonable to conclude that the proportional special benefit these properties receive from the
public improvements funded by the District assessments has a similar proportionality and these
parcels shall be assigned a weighted proportional special benefits of 0.75 EBU per unit. However,
the parcels in Zones A-2, A-5, and A-6 are assigned a reduced special benefit (20% EBU
reduction) in recognition of their reduced proximity to the improvements shared with properties in
Zones A-1, A3 and A-4. Therefore, Multi-Family Residential parcels in Zones A-2, A-5, and A-6
are assigned 0.60 EBU per unit.
Residential Condominium -- This land use classification includes a fully subdivided
condominium residential unit assigned its own Assessor's Parcel Number by the County, and
multiple residential units on a single parcel that the County has identified as condominium
development rather than as multi-family residential, presumably because each residential unit has
a separate owner. Similar to multi-family residential parcels, Residential Condominium parcels
and developments typically have a greater unit density and/or reduced unit size compared to the
typical residential single-family property, but the unit density and/or unit size, and impact on public
infrastructure is different than that associated with multi-family residential parcels. Therefore,
Residential Condominium parcels are assigned a weighted proportional special benefit of 0.80
40 of 59 May 15, 2018, Item #4.2
EBU per unit which is less than a Residential Single-Family property, but more than a Multi-Family
Residential property.
Non-Residential Developed -- This land use is defined as a parcel and/or development (group
of parcels) that has been developed primarily with a non-residential use including, but not limited
to, both publicly owned and privately owned commercial retail or service, office or professional
service, hotel or motel, manufacturing, warehousing, parking lot, and/or institutional facilities
including hospitals or other medical facilities, private schools or education centers, churches or
other non-profit organizations. Based on the overall residential development within this District, it
has been determined that on average single-family residential developments yield approximately
four dwelling units per acre of land. Therefore, since the single family residential parcel (the base
value for calculation of assessments) is assigned 1.0 Equivalent Benefit Unit it is reasonable and
appropriate to assign the developed non-residential properties a weighted special benefit that
reflects a similar and proportional development density. Therefore, the EBU assigned to each
developed non-residential property is established by multiplying the parcel's applied acreage by
4.0 EBU per acre(e.g., a developed non-residential parcel of 4.25-acres would be assigned 17.00
EBU, 4.25 acres x 4.0 EBU/acre = 17.00 EBU).
Public Schools -- This land use classification is defined as properties identified specifically as
public-school sites. On average, approximately 1/4th (25%) of a school site's total acreage is
developed with structures, which is similar to what is associated with non-residential
developments.The remaining parcel acreage(approximately 75%) is generally playground areas,
sports fields and/or undeveloped or minimally developed area which is similar to park
improvements. Recognizing the overall development of this parcel as compared to other
properties in the District, it reasonable to conclude that proportional special benefit EBU
calculated for such parcels is accurately reflected by treating that portion of the parcel with
structures similar to the EBU calculated for Non-Residential Developed properties (25% of
acreage x 4.0 EBU/acre), with the remaining portion of the parcel's acreage being excluded
(treated similar to the public areas and landscaping in the District, although this area is not part
of the improvements being maintained by the District). In this District, there is currently one Public
School property(Poway High School). This 45.24-acre school site parcel shall be assigned 45.24
EBU to reflect its proportional special benefit ([45.24 acres x 25% = 11.31 applied acre]; x 4.00
EBU/acre = 945.24 EBU).
Vacant Single-Family -- This land use classification is defined as a fully subdivided residential
lot within a tract or residential subdivision which does not have a residential structure. While such
properties clearly receive substantially similar special benefits from the improvements as adjacent
developed Residential Single-Family parcels, it is also recognized that in part the aesthetic
benefits of the District improvements to properties in the District is related to the use of those
properties (people related) and Vacant Single-Family parcels have less immediate utilization of
those improvements. Therefore, parcels identified as Vacant Single-Family parcels shall be
assigned a proportional EBU that is 50% of that assigned to developed Residential Single-Family
parcels, which is 0.5 EBU per parcel. However, the parcels in Zones A-2, A-5, and A-6 are
assigned a reduced special benefit (20% EBU reduction) in recognition of their reduced proximity
to the improvements shared with properties in Zones A-1, A3 and A-4. Therefore, Vacant Single-
Family parcels in Zones A-2, A-5, and A-6 are assigned 0.40 EBU per parcel.
Vacant Undeveloped Property -- This land use classification includes undeveloped properties
that are identified as parcels with no development, including non-residential properties and
residential properties that have not been fully subdivided with the potential to be developed with
more than one residential unit. Although it is recognized that most of the improvements within the
District and various Zones have been constructed and accepted for maintenance in large part as
41 of 59 May 15, 2018, Item # 4.2
a direct result of the development of the properties within the District and these developments
clearly receive particular and distinct benefits (direct special benefits) from those improvements,
it is also recognized that the various improvements within the District are considered
improvements shared by multiple developments or parcels within a specific development rather
than being specifically associated with an individual parcel. Collectively the various improvements
were installed and constructed as part of the overall development of properties within the District
and Zones to their full and best use, including vacant undeveloped properties in the vicinity of
those improvements. However, it is also recognized that in part the aesthetic benefits of the
District improvements to properties in the District is related to the use of those properties (people
related) and undeveloped properties have less immediate utilization of those improvements and
because the near future development of such properties is less than that of a fully subdivided
residential lot within a tract or residential subdivision the proportional special benefit to such
properties is considered to be less than that of subdivided lot. Therefore, parcels identified as
Vacant Undeveloped Property shall be assigned a proportional EBU that is 25% of that assigned
to developed properties, which is 1.0 EBU per acre (25% of the 4.0 EBU per acre assigned to
Developed Non-Residential properties). However, the parcels in Zones A-2, A-5, and A-6 are
assigned a reduced special benefit (20% EBU reduction) in recognition of their reduced proximity
to the improvements shared with properties in Zones A-1, A3 and A-4. Therefore, Vacant
Undeveloped parcels in Zones A-2, A-5, and A-6 are assigned 0.80 EBU per acre.
Exempt Properties --Within most districts, there are lots or parcels of land that that because of
their size, the nature of their use, and/or the types of improvements being maintained by a district,
do not receive a special benefit from the improvements (i.e., exempt from assessment). These
parcels may include, but are not limited to, public streets and other roadways (typically not
assigned an APN by the County); dedicated public easements, public rights-of-way, or utility
rights-of-way; common areas, bifurcated lots; sliver parcels or any other parcel that has little or
no assessed value and cannot be developed independently; parcels that are part of the
improvements being maintained by the District and/or public property that provides substantially
similar landscape improvements for the benefit of parcels in the district or the public at large such
as parks and dedicated open space areas. These types of parcels are considered to receive no
special benefit from the improvements and are therefore exempted from assessment and are
assigned 0.00 EBU.
Special Case Parcels -- In many landscaping and lighting districts (particularly districts that have
a wide range of land uses, multiple developments, and/or diversity in the location and type of
improvements) there may be one or more parcels to be assessed that the standard land use
classifications and proportionality identified above do not accurately identify the use and special
benefits received from the improvements. Properties that are typically classified as Special Case
Parcels usually involve partial or mixed use development of the property or development
restrictions whether those restrictions are temporary or permanent and affect the properties
proportional special benefit. Examples of such restrictions may include situations where only a
portion of the parcel's total acreage is or can be developed. In such a case, the net acreage of
the parcel that is utilized rather than the gross acreage of the parcel may be applied to calculate
the parcel's proportional special benefit similar to how the Public School parcels are treated. Each
such parcel shall be addressed on a case-by-case basis by the Assessment Engineer. The EBU
assigned to such parcels shall be based on the specific issues related to that parcel and its
proportional special benefit compared to other properties that receive special benefits from the
improvements.
At the time this Report was prepared, there are two parcels within the District that are designated
as Special Case Parcels. These two parcels are identified as a contiguous golf course property
within Zone A-2, that collectively total approximately 172.48 acres. Given the size and nature of
42 of 59 May 15, 2018, Item #4.2
the use of these parcels. it has been determined that the special benefits these two parcels
receive from the improvements are not adequately addressed by any single land use classification
described herein. These two parcels have substantially similar attributes to that of parks and the
Districts landscape areas by providing additional green space and recreational areas which are
available to the public and enhance the overall aesthetic of the District. and therefore could be
considered partially exempt from the assessments. However, it is also recognized that these two
parcels are part of a non-residential enterprise, and like other Non-Residential Developed
properties. the District improvements that benefit other properties in Zone A-2 also provide direct
advantages to these two parcels (i.e.. special benefits) that affect the parcel in a way that is
particular and distinct from their effect on other parcels and that real property in general and the
public at large do not share. In consideration of these facts. collectively these two golf course
parcels have been assigned 2.0 EBU to reflect their proportional special benefit. and although
one parcel is significantly larger than the other, because they are contiguous properties that
comprise a single golf course. each parcel has been assigned 1.0 EBU. In subsequent fiscal
years. the Special Case designation may be applicable to other parcels. due to parcel changes.
property development, and/or annexation of territory to the District.
A summary of the applied Equivalent Benefit Units (EBUs) described above for the various land
use classifications within the District is shown in the following table:
Assessment Land Use I Equivalent Benefit Unit Calculation
Single-Family Residential 1 00 EBU per Parcel
Single-Family Residential(Zones A-2. A-5, &A-6) 0.80 EBU per Parcel
Multi-Family Residential 0.75 EBU per Unit
Mufti-Fainly Residential(Zones A-2. A-5. &A-6) 0.60 EBU per Unit
Non-Residential Developed 4 00 EBU per Acre
Public School 4.00 EBU per Adjusted Acre
Vacant Single-Family 0 50 EBU per Parcel
Vacant Single-Family (Zones A-2, A-5, &A-6) 0.40 EBU per Parcel
Vacant Undeveloped 1 00 EBU per Acre
Vacant Undeveloped (Zones A-2. A-5, &A-6) 0.80 EBU per Acre
Special Case Varied EBU per Parcel
Exempt 0.00 EBU per Acre
43 of 59 May 15, 2018. Item # 4.2
Equivalent Benefit Unit Summary
The following is a summary of the Equivalent Benefit Units applicable to the various land use
classifications identified in each District Zone:
Zone A-1
• Equivalent
Total Applied Applied Benefit Units
Assessment Land Use Parcels Acreage Units/Parcels (EBU)
Single-Family Residential 78 - 78 78.00
_Multi-Famly Residential 1 - 2 1.50
Non-Residential Developed 1 1.460 - 5.84
_Vacant Undeveloped 6 t - 6 6.00
Exempt 17 98.740 - -
Totals 103 100.200 86 91.34
Zone A-2
Equivalent
Total Applied Applied Benefit Units
Assessment Land Use Parcels Acreage Units/Parcels (EBU)
S ngle-Famiy Residential(Zones A-2,A-5,&A-6) 136 - 136 108.80
Multi-Family Residsft8a1(Zones A-2,A-5,&A8) 1 - 2 1.20
Vacant Single-Farcy(Zones A-2,A-5,&A-6) 54 - 54 21.60
Vacant Undeveloped(Zones A-2,A-5,5 46) 15 - 15 12.00
Special Case 2 - 2 2.00
Exempt 70 841.900 - -
Totals 278 841.900 209 145 60
Zone A-3
Equivalent
Total Applied Applied Benefit Units
Assessment Land Use Parcels Acreage Units/Parcels (E8U)
Single-Family Residential 330 - 330 330.00
Non-Residential Developed 3 21.890 - 87.56
Exempt 8 39.700 .. -
Totals 341 61.590 330 417.56
Zone A-4
Equivalent
Total Applied Applied Benefit Units
Assessment Land Use Parcels Acreage Units/Parcels (EBU)
Single-Family Residential 297 - 297 297.00
Public School 1 11.310 - 45.24
Vacant Single-Family 4 - 4 200
Eietrpt 16 35.330 -
Totals 318 46.640 •_ 344.24
44 of 59 May 15, 2018, Item # 4.2
Zone A-5
Equivalent
Total Applied Applied 1 Benefit Units
Assessment Land Use Parcels Acreage Units/Parcels ' (EBU)
Single-Family Residential(Zones A-2,A-5,&A-6) 76 76 ' 60.80
Vacant Single-Family(Zones A-2,A-5,&A4) 1 - 1 0.40
Exempt 2 5.350 - -
Totals 79 5.350 77 61.20
Zone A-6
Equivalent
Total Applied Applied Benefit Units
Assessment Land Use Parcels Acreage Units/Parcels (EBU)
Single-Family Residential(Zones A-2,Pr5,&A-6) 27 - 27 21.60
Vacant Single-Family(Zones A-2,A5,&A6) 2 2 0.80
Exempt 2 1900 - -
Totals 31 1.900 29 22.40
Zone B
Equivalent
Total Applied Applied Benefit Units
Assessment Land Use Parcels Acreage Units/Parcels (EBU)
Non-Residential Developed 1 , 3.210 - 12.84
Totals 1 3.210 - 12.84
Zone C
Equivalent
Total Applied Applied Benefit Units
Assessment Land Use Parcels I Acreage Units/Parcels; (EBU)
i
Single-Family Residential 75 - 75 75.00
Vacant Single-Family 2 - 2 1.00
Exempt 2 1.830 - -
Totals 79 1.830 77 76.00
Zone D
Equivalent
Total Applied i Applied Benefit Units
Assessment Land Use Parcels Acreage �Units/Parcels (EBU)
i
Single-Family Residential 26 - 26 26.00
Totals 26 - 26 26.00
45 of 59 May 15. 2018, Item # 4.2
Part III — Estimate of Costs
Calculation of Assessments
An assessment amount per Equivalent Benefit Unit (Assessment per EBU) is calculated by:
Taking the "Total Annual Expenses" (Total budgeted costs) and subtracting the "Total General
Benefit Expenses" (Landscaping General Benefit Expenses), to establish the "Total Special
Benefit Expenses";
Total Annual Expenses—General Benefit Expenses = Special Benefit Expenses
To the resulting "Special Benefit Expenses", various "Funding Adjustments" may be applied that
may include, but are not limited to:
"Reserve Fund Transfer/Deduction", represents an amount of available existing funds from
the"Operational Reserve Fund Balances" being applied to pay a portion of the Special Benefit
Expenses for the fiscal year.
"Additional City Funding", represents an adjustment that is typically used to address any
funding gap between the amount budgeted to provide the improvements and services
("Special Benefit Expenses"); and the amount that will be collected through the assessments.
This funding may be addressed by an additional City contribution or loan from the City which
is intended to be recovered in future fiscal years.
. These adjustments to the Special Benefit Expenses result in the net special benefit amount to be
assessed "Balance to Levy";
Special Benefit Expenses - Funding Adjustments = Balance to Levy
The amount identified as the "Balance to Levy" is divided by the total number of EBUs of parcels
that receive special benefits to establish the Assessment Rate ("Assessment Per EBU"). This
Assessment Rate is then applied back to each parcel's individual EBU to calculate the parcel's
proportionate special benefits and assessment amount for the improvements.
Balance to Levy ! Total EBU = Assessment Per EBU (Assessment Rate)
Assessment Per EBU x Parcel EBU = Parcel Assessment Amount
Note: The maximum assessments outlined in this Report are intended to fully support the
expenses identified as "Special Benefit Expenses". Consequently, there are no "Funding
Adjustments"reflected in the budgets establishing the maximum assessment rates, and therefore,
the "Balance to Levy" is equal to the total "Special Benefit Expenses".
46 of 59 May 15, 2018, Item # 4.2
District Budgets and Assessments
The budgets and assessments for each Zone outlined on the following pages are based on the
City's estimate of the expenses and related funding necessary for the operation, maintenance
and servicing of the District improvements as identified for each Zone in Part I of this Report.
The budgets provided herein establish the initial Maximum Assessment per EBU (Maximum
Assessment Rates) for Fiscal Year 2018/2019 which shall be presented to the property owners
of record within the District as part of the Ballot Proceeding. This Maximum Assessment Rate is
identified in the budgets for each Zone as the "Balloted Maximum Assessment Rate Per EBU". In
addition, the proposed assessment rate to be applied for the calculation of the parcel
assessments to be levied and collected for Fiscal Year 2018/2019 are identified in the budgets
as the "Assessment Per EBU". Reference is hereby made to the assessment roll included herein
as Part V for the individual maximum assessment amounts balloted for each parcel and the
proposed assessment for Fiscal Year 2018/2019.
47 of 59 May 15, 2018, Item #4.2
Budgets Establishing Maximum Assessments (Zones A-1 through A-3)
Zone A-1 Zion A-2 Zone A-3
Pinta Mae 1WI13 a 17433:Trac s P Isms ems M1M,mos Prow Yep uses a 113M.Tracts
BUDGET ITEMS 1333a 13434.a Various Patters 05014 0e44a 11134 120t.OM. 10535. 11340. 11311 130/a,a
11444/3423.a 23442.TWIN Venus Pawls
11354 13700 14143. 14310
14527. 15726. 1501$4'/r a.s
Pac.
ANNUAL OPERATION S MAINTENANCE EXPENSES
Landscape Maintenance 1 15.4154 4 20,273 5 Made
Tree Maintenance 3,341 4,366 14,234
Landscape irngaton(Water,Electrlcey.Maintenance&Repaid 11,213 17,474 53.554
Grafiei Abatement 23 34 313
TOTAL ANNUAL OPERATION d MAINTENANCE EXPENSES S 31,080 5 49,541 $ 147,907
RENASEJTATK)MIRENOvATIoN FUNDNG&CAPITAL EXPENDITURES
Landscape Improvement Rehabilitation/Renovation Funding 6,642 11,061 33.180
Planned Capital Expenditures(For Current Fiscal Year) $ - $ - $ -
TOTAL RENABLITATION/RENOVATION FUNDING&CAPITAL EXPENDITURES $ 6,942 5 11,066 5 33,180
NCDENTAL EXPENSES
Operational Reserves(Collection) $ 1,613 $ 2,671 $ 7,708
Distr,c,Adme,ntralon Expenses 1 1,173 5 2,020 4 4.063
Canny Admnistral.on Fee 44 104 317
Annual Administration Expenses 1,339 2,136 6,400
TOTAL INCIDENTAL EXPENSES $ 2,962 5 4,706 $ 14,108
L
TOTAL ANNUAL EXPENSES S 40,974 5 65,313 $ 195,195
GENERAL BENEFIT EXPENSES
Landscaping General Benefit-City Funded ; {6,766) $ (9,190) $ (26.93$),
TOTAL GENERAL BENEFIT EXPENSES $ (6,765) $ (9,190) $ (26.935)
TOTAL SPECIAL BENEFIT EXPENSES S 36,209 5 56,123 $ 168,260
FINIOSIG ADJUSTMENTS
Reserve Fund Transfer/Deduction $ • $ - $ -
Additional City Funding and%or Service Reductions'
TOTAL FUNDING ADJUSTMENTS i CONTRIBUTIONS $ • $ • $
BALANCE TO LEVY $ 35,209 $ 56,123 $ 168,260
DISTRICT STATISTICS
Total Parcels 103 278 341
Assessed Parcels 86 206 333
Equivalent Benefit Units ZEBU) 91.34 145.60 417.56
Assessment Per EBU ' $385 50 $385.50 $402.97
Balloted Maximum Assessment Rate Per EBU $386.00 $386.00 $403.00
Balloted Amount $ 35,257.24 $ 56,201.60 $ 168.276.68
FUND BALANCE
Es/mated Beglmmp Fund Balance $ s r 5 -
Operatonal Reserve&Ret5tMat.on Funding r,dlected i Sc, 13,37 442M
Estimated Endep Fund Scarce $ sr, s 13,437 8 40,646
1) The "Assessment Per EBU' shown above for Zones A-1. A-2. and A-3 represent the proposed Zone assessment
rate to be applied for the levy and collection of assessments for Zone Fiscal Year 2018/2019
48 of 59 May 15, 2018, Item # 4.2
Budgets Establishing Maximum Assessments (Zones A-4 through A-6)
Zone A-4 Zone A•6 2one A4I
Pond Rap.01173 38716 0016, Tracts 11114 U4&0 12117 Tracts 174 a 12331
6(40(007 RENS ,144 11710. 16100. 10111.
till,&tilt, Tracts 1043
00331. 11320 ,1314. 14017.4
Varma.Petah
ANNUAL OPERATION 8.MAINTENANCE EXPENSES
landscape Maintenance I 11,718 $ 11.111 4 3.410
Tree Matreenance 18.032 2,872 570
landscape Irnpaton(Water,Electr,cny.Marnterance&Repur) 87,320 16221
2,780
Graffito Abatement 711 K 8
TOTAL ANNUAL OPERATION&MAINTENANCE EXPENSES $ 154,345 $ 34,597 $ 7,622
RE4ABLITATIONAtENOVATC N FUNDING 8 CAPITAL EXPENDITURES
Landscape Improvement Rehabilitation/Renovation Funding 38,641 6,097 1,703
Planned Capital Expenditures(For Current Fiscal Year) $ • S • $ -
TOTAL REHABILITATION/RENOVATION FUNDING&CAPITAL EXPENDITURES $ 35,641 $ 8,097 $ 1,703
INCVENTAL EXPENSES
Operational Reserves(Collection) S 6,226 S 1,876 S 396
Ontnct Admnntretmn Expenses 8 8,493 1 1.4x0 $ 313
Coum7 Admnatrabon Fee 335 77 to
Annual Administration Expenses 6,832 1.557 328
TOTAL INCIDENTAL EXPENSES $ 16,068 S 3,433 $ 724
'TOTAL ANNUAL EXPENSES i 205,044 $ 46.127 $ 10,049
GENERAL BENEFIT EXPENSES
Landscaping General Benefit—City Funded S (26.462) S (5.181) $ (1,414)
TOTAL GENERAL BENEFIT EXPENSES $ (25,462) S (5,181) $ (1,414)
TOTAL SPECIAL BENEFIT EXPENSES 5 179,582 S 40,946 $ 8.635
FUNDING ADJUSTMENTS
Reserve Fund Transfer/Deduction $ • $ - S -
Additional City Funding and/or Service Reductions' - -
iTOTAL FUNDING ADJUSTMENTS/CONTRIBUTIONS S • S - S -
BALANCE TO LEVY $ 179,582 $ 40,946 5 8,635
DISTRICT STATISTICS
Total Parcels 318 79 31
Assessed Parcels 302 77 29
Equivalent Benefit Units(EBU) 344.24 61.20 22 40
Assessment Per EBU 5521.681 $669.06 5385 50'
Balloted Maximum Assessment Rate Per EBU 5522.00 $670.00 $386.00
Balloted Amount 5 179,693.28 S 41,004.00 $ 8,646.40
FUND BALANCE
' Eelmeted Beginning Fund B&Ynce f - 8 - $ -
Opera ons(Reserve 6 Rehab,Nat,on Funding Collected _ 43,507 4173 2,011
Euenated Fnd,nq Funa Balance 8 43147 $ 1,173 $ 2.088
1) The "Assessment Per EBU' shown above for Zones A-4 and A-6 represent the proposed Zone assessment rate to
be applied for the levy and collection of assessments for Zone Fiscal Year 2018/2019 The 'Assessment Per EBU"
shown above for Zone A-5 reflects the calculated assessment rate for the Zone if all the improvements associated with
the Zone were to be maintained by the District However. it is anticipated that the local Zone-specific improvements for
Zone A-5 will be maintained by the homeowners' association within that Zone and the assessments for Fiscal Year
2018/2019 will be based on the Zone's proportionate share of the Zone ..A. shared improvements at an assessment
rate of$385 00 per EBU which is the same as Zone A-6
49 of 59 May 15, 2018. Item # 4.2
Budgets Establishing Maximum Assessments (Zones B, C, D, and District Totals)
Zone S Zone C Zone D TOTAL BUDGET
Establishing
6UDOET ITEMS Maximum A mints
Trus w111 Pastel 1111.1 161113 NNR tract 110
heft 11111111•UM For Landscape Mr,bnance
Detract No.ti-2.Foul Tem
20tl2019
ANNUAL OPERATION IL MANTENANCE EXPENSES
Laduepe Ma.ne,anc• $ 7•s $ 3.12'I San 1 23137$
tree Maa,tenanc• I. 471 171 41.666
Landuap.I,7O.lon(Wets.Electrify Ma.n.nr.o Si Rips, 467 3,615 4.167 I 117,662
Graffiti Anat.n.nl 3 3$ 20 743
TOTAL ANNUAL OPERATION&MAN TENANCE EXPENSES $ 1,276 $ 6,010 $ 10,635 $ 443,813
REMABLRATIONIRENOVATION FUNDING I CAPITAL EXPENDITURES
Landscape Improvement Rehabilitation/Renovation Funding 304 161] 2,560 101,106
Planned Capital Expenditures(For Current Fiscal Year) S $ - $ - $ •
TOTAL REMABLITA TON/RENOVATION FUNDNG a CAPITAL EXPENDITURES $ 304 $ 1,613 $ 2,660 $ 101,106
NCOENTAL EXPENSES
Operational Reserves(Collection) f 87 $ 388 $ IN $ 23441
Ontrrt Ad,..,ntrelon Expanse. i 1 1 397 $ 410 I 11.400
County Adr..,nlrelon Fee 3 16 7< 1a
Annual Administration Expenses ss 373 465 19,465
TOTAL INCIDENTAL EXPENSES $ 123 $ 711i
$ 1,091 $ 42,906
TOTAL ANNUAL EXPENSES $ 1,703 $ 9,134 $ 14,286 $ 587,825
GENERAL BENEFIT EXPENSES
Landscaping General Benefit-City Funded $ (240) $ (653) $ (1,263) $ (76,123)
TOTAL GENERAL BENEFIT EXPENSES $ (240) $ (653) $ (1,283) $ (76,123)
TOTAL SPECIAL BENEFIT EXPENSES $ 1,443 $ 8,481 $ 13,003 $ 511,702
F(3NDNG ADJUSTMENTS
Reserve Fund TransferlDeduction $ - $ • S - $ -
Additional City Funding andlor Service Reductions' - -
TOTALFUNDNGADJUSTMENTS/CONTRIBUTONS S - $ - S - S •
BALANCE TO LEVY $ 1,463 $ 8,481 $ 13,003 $ 511,702
Trial Parcels 1 79 26 1,256
Assessed Parcels 1 77 26 1,137
Equivalent Benefit Units(EBUI 12.84 76.00 26 00 1,197.18
Assessment Per EBU"' $113.95 5111 60 5500 12
Balloted Maximum Assessment Rate Per EBU $114.00; $112.00 $501 00
Balloted Amount $ 1,463.76 $ 6,512.00, $ 13,026.00 S 512,080.96
FUND BALANCE
Estimated Beginning Fund Berne 3 - $ . $ - $
Openness Reserve I Reheliltston tuning Collected 371 2,661 3,11 124,147
Estimated Emden Fund Saltire 1 371 1 I 7,101 $ 3,11 6 124,447
(1) The -'Assessment Per EBU" (assessment rates) shown above for Zones C and D represent the proposed Zone
assessment rate to be applied for the levy and collection of assessments for Zone Fiscal Year 2018/2019 The
"Assessment Per EBU' shown above for Zone B reflects the calculated assessment rate for the Zone if the
Improvements associated with the Zone were to be maintained by the District. However, it Is anticipated that the
improvements for Zone B will be maintained by the property owner within that Zone and the assessment rate for Fiscal
Year 2018/2019 will be $0 00 per EBU
50 of 59 May 15, 2018, Item # 4.2
Assessment Range Formula
Any new or increased assessment requires certain noticing and meeting requirements by law.
The Omnibus Act defines the terms"new or increased assessment" to exclude certain conditions.
These certain conditions included "any assessment that does not exceed an assessment formula
or range of assessments previously adopted by the agency or approved by the voters in the area
where the assessment is imposed."
Recognizing that the cost of maintaining the improvements will increase over time due to inflation,
the maximum assessments (initial maximum assessment amounts and maximum assessment
rates established herein for fiscal year 2018/2019), shall include an annual inflationary adjustment
(Assessment Range Formula).
The Assessment Range Formula for this District is defined by the following:
Commencing in fiscal year 2019/2020 and each fiscal year thereafter, the maximum assessment
rates established for the improvements in the previous fiscal year for each Zone may be adjusted
by the lesser of three percent(3%)or the percentage increase in the Consumer Price Index (CPI).
The Consumer Price Index used for the inflationary adjustment shall be for the San Diego Area
for All Items for All Urban Consumers (CPI-U), as developed by U.S. Bureau of Labor Statistics.
The CPI used shall be as determined by the Bureau of Labor Statistics for a similar period of time.
Each fiscal year the City shall identify the percentage change in the CPI, using the difference over
a 12-month period between the current year and of the previous year (Annual Average). This
annual percentage change is generally established based on the average percentage change
from the prior year, but a similar 12-month time period may be used if the data for the annual
average is not available. This percentage difference shall then establish the range of increase to
the maximum assessment rates allowed, but the adjustment applied to the maximum assessment
rates shall not exceed 3%. If the percentage change in the CPI-U is negative, the maximum
assessment rates may not be adjusted from the previous fiscal year (unchanged). If the
percentage change in the CPI-U is greater than 3% then the maximum assessment rates may be
adjusted by 3%. Should the Bureau of Labor Statistics revise such index or discontinue the
preparation of such index, the City may use the revised index or comparable system as approved
by the City Council for determining fluctuations in the cost of living.
This annual adjustment to the authorized maximum assessment rates (adjusted maximum
assessment rates) will provide for an appropriate and reasonable increase to the maximum
assessment rates to address normal cost increases anticipated over the years as a result of
inflation. This Assessment Range Formula shall be identified in the assessment ballots being
presented to the property owners as part of the protest ballot proceeding conducted for the
formation of the District.
In subsequent fiscal years, any proposed annual assessment (rate per EBU) less than or equal
to the calculated (adjusted) Maximum Assessment Rate for that fiscal year is not considered an
increased assessment, even if the proposed assessment is significantly greater than the
assessment applied in the prior fiscal year. Changes in land use or size of an individual property
resulting in an assessment increase, is not considered an increased assessment. To impose a
new or increased assessment other than the annual inflationary adjustment provided by the
preceding Assessment Range Formula or as a result in change in land use or size of an individual
property, the City must comply with the provisions of the California Constitution Article XIIID
Section 4, that requires the preparation of an assessment engineer's report, a public hearing and
certain protest procedures, including mailed notice of the public hearing and property owner
protest balloting. Property owners, through the balloting process, must approve a proposed new
or increased assessment before such an assessment may be imposed.
51 of 59 May 15, 2018, Item #4.2
Part IV — District Diagram
The District Diagram provided on the following page provides a visual depiction of the boundaries
of the District and the applicable Zones established therein for Fiscal Year 2018/2019. This
diagram also provides a visual depiction of the location and approximate extent of the
improvements to be maintained as part of the District improvements. The combination of this
Diagram and the Assessment Roll referenced in Part V of this Report constitutes the Assessment
Diagram for this District and encompasses all the lots, parcels and subdivisions of land that
receive or will receive a special benefit from the improvements to be provided in the District at the
time this Report was prepared.
Reference is hereby made to the San Diego County Assessor's Parcel Maps for a detailed
description of the lines and dimensions of each parcel within Landscape Maintenance District No.
18-2 including all subsequent subdivisions, lot-line adjustments, or parcel changes therein.
52 of 59 May 15, 2018, Item #4.2
District Diagram
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53 of 59 May 15, 2018. Item # 4.2
Part V — Assessment Roll
Due to the number of parcels within Landscape Maintenance District No. 18-2, the Assessment
Roll containing the maximum assessment amounts to be balloted and the proposed new
assessment amount to be levied and collected for fiscal year 2017/2018 has been filed with the
City Clerk in an electronic format and is, by reference, made part of this Report. The proposed
Assessment Roll shall be available for public inspection in the City Clerk's Office during normal
office hours.
Each parcel listed on the Assessment Roll is currently shown and illustrated on the San Diego
County Assessor's Roll and reflective of the Assessor's Parcel Maps at the time this Report was
prepared and shall incorporate all subsequent parcel changes, lot-line adjustments, and
subdivisions of land identified by the San Diego County Assessor's Office. These records are, by
reference, made part of this Report and shall govern for all details concerning the description of
the lots or parcels. All assessments presented on the assessment roll are subject to change
pending the outcome of the Ballot Proceedings and/or as a result of parcel changes made by the
County including parcel splits, parcel merges or development changes that occur prior to the
County generating tax bills for the fiscal year.
54 of 59 May 15, 2018, Item #4.2
Landscape Maintenance District No 18-2
Engineer's Report
Fiscal Year 2018/2019
District Diagram
City Of Poway i
LMD 18-2 — C i
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55 of 59 May 15. 2018. Item # 4.2
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56 of 59 May 15 , 2018, Item #4.2
Eric Heidemann
From: Carol Legg
Sent: Monday, March 12,2018 7:51 AM
To: Barry Leonard - Home; Dave Grosch - Home;Jim Cunningham - Home;John Mullin-
Home; Steve Vaus-Home
Cc: Tina White;Wendy Kaserman; Michael Obermiller; Eric Heidemann
Subject: FW: LMD 18-2
Original Message
From: Kempruffner(mailto:kempruffner@cox.net]
Sent:Saturday, March 10, 2018 1:16 PM
To: Steve Vaus<SVaus@poway.org>; Barry Leonard <BLeonard@poway.org>;John Mullin<JMullin@poway.org>;Jim
Cunningham cJCunningham@poway.org>; Dave Grosch<DGrosch@poway.org>
Subject: LMD 18-2
The proposed 18-2 landscape vote is totally unfair to the property owners that will have their assessments increased.
Attractive landscaping would and should be important to all of Poway and therefore an assessment should be charged
and voted on by all.
Kemp Ruffner
Sent from my iPhone
57 of 59 May 15 , 2018, Item # 4.2
Eric Heidemann
From: Judy Purvis <judy5811@sbcglobal.net>
Sent: Thursday, March 8, 2018 10:57 AM
To: Eric Heidemann
Subject: Thanks
I am not sure why I am thanking you for possibly Increasing my annual tax bill about 16% but I do appreciate your
responsiveness and willingness to answer questions and have a debate,as you said, about this proposal. While I still
have a very hard time understanding the inclusion and exclusion of properties in my area I guess that is now a done deal.
I am still not clear the exact amount of my proposed assessment fee.At first it was$403 and then$383 and then a
mention of a 20%reduction. I guess the ballot will tell me that information when it arrives. You had a tough job and you
handled it well. I wish I could have agreed with you.
Sent from my iPad
58 of 59 May 15 , 2018, Item #4.2
Eric Heidemann
From: Carol Legg
Sent: Tuesday, March 6,2018 6:00 PM
To: Barry Leonard - Home; Dave Grosch - Home;Jim Cunningham - Home;John Mullin-
• Home;Steve Vaus-Home
Cc: Tina White;Wendy Kaserman; Michael Obermiller, Eric Heidemann; Nancy Neufeld;Ana
Alarcon;Jasmine Pernicano
Subject: FW: LMD 18-2
From: Kathleen Myers imailto:kamkraft@aol.com]
Sent:Tuesday,March 6,2018 5:57 PM
To:Steve Vaus<SVaus@poway.org>;Barry Leonard <BLeonard@poway.org>;John Mullin<JMullin@poway.org>;Jim
Cunningham<JCunningham@poway.org>; Dave Grosch <DGrosch@poway.org>
Subject: LMD 18-2
Sent from Mail for Windows 10
To the City Council :
I do not support this Landscape Funding proposal. We never had any input about the
Original district and now are being asked to pay for it. You want to increase
my taxes by over 10%and be able to increase this fee at up to 3%per year! Outrageous.
All this landscaping was put in after Old Coach Estates area. It is for Bridlewood,and
Even they have not paid for it. Thank You for your attention.
Bob Myers
59 of 59 May 15 , 2018, Item #4.2