Item 4.2 - Initiation of Proceeding for the Formation of LMD 19-1G`,�� OF CWgY
yF �v.m..u, ,W
C� /ti THE �p�
City of Poway
COUNCIL AGENDA REPORT
APPROVED
a
APPROVED AS AMENDED
❑
(SEE MINUTES)
DENIED
❑
REMOVED
❑
CONTINUED
RESOLUTION NO. �Gj pj g
DATE: April 2, 2019
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: Initiation of Proceeding for the Formation of Landscape Maintenance
District 19-1
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
cost of the enhancements. The City currently has five landscape maintenance districts that
were formed in this manner, including Landscape Maintenance District 87-1 (the Existing
District).
In 1987, 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 1999 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 ll, 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. Beginning in Fiscal Year
2016-17, it has been necessary to use a portion of the Existing District's reserves each year to
1 of 49 April 2, 2019, Item # ti• 2
Initiation of Proceeding for the Formation Landscape Maintenance District 19-1
April 2, 2019
Page 2
pay for annual operations. Prolonged drought conditions and rising labor and recycled water
costs, contributed to the use of fund reserves. At this point, annual expenses exceed annual
revenue and the Existing District's reserves have been used to cover essential but unanticipated
expenses, like tree removal. When maintenance costs 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.
In evaluating the improvements within the Existing District, the proximity of some of the
improvements to certain properties and the development of properties within the Existing
District, it was determined that certain properties should be detached from the Existing District
and a new landscape maintenance district should be formed. The detached properties are
proposed to be included in the Proposed District. The attached resolutions would initiate
proceedings for a ballot protest proceeding to form a new Landscape Maintenance District 19-1
(Proposed District) that complies with the requirements of Article XIII D and would declare the
City's intention to form the Proposed District and detach certain properties from the Existing
District. The detachment of the properties from the Existing District would be conditioned on the
formation of the Proposed District. The Proposed District would result in adding twenty-one
properties previously not included in the Existing District, of which four would be levied an
assessment. 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 360 assessed parcels, which the Engineer has identified will receive special
benefits from the enhanced improvement and maintenance services.
Recommended Action:
It is recommended that the City Council:
1. Adopt the resolution initiating proceedings for the formation of LMD 19-1 and directing
the preparation and filing of an Engineers Report; and
2. Adopt the resolution declaring the City's intention to form Landscape Maintenance
District No. 19-1; and to levy and collect annual assessments related thereto
commencing Fiscal Year 2019-20, provide notice of public hearing and mailing of
assessment ballots.
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 over and above 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 87-1. The purpose of the proposed Landscape Maintenance District 19-1 (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
2 of 49 April 2, 2019, Item #`� Z
Initiation of Proceeding for the Formation Landscape Maintenance District 19-1
April 2, 2019
Page 3
costs are distributed by equitably assessing properties in accordance with the special benefits
conferred.
In 1987 the landscape improvements for the Existing District•were initially constructed by the
developer of the Pomerado Business Park, Cadillac Fairview Industrial Development, Inc. At
the time, the boundary of the Existing District only included Pomerado Business Park (106 lots).
The district grew as additional subdivisions were added by written consent from the property
. owner(s) at the time: Poway Corporate Center, Tech Business Center, Parkway Business
Centre, Parkway Summit, Trident Center 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 Pomerado Road, Community Road, Scripps Poway Parkway and
portions of Stowe Drive. In 1995, due to foreclosures, landscape maintenance service levels
and watering were reduced, causing concern about the appearance of the landscaping along
roadways leading into the Poway Business Park. Certain landscape improvement areas
(approximately 56.6 acres) of the Land Development Association (LDA) landscape maintenance
responsibilities were transferred to LMD 87-1. These landscape improvements are located
along portions of Scripps Poway Parkway, Stowe Drive and Community Road. At the time,
• parcels located within Pomerado Business Park were paying LDA fees and LMD 87-1
assessments. Since LMD 87-1 was assuming maintenance responsibilities for the above
mentioned areas, the assessments fees for parcels located within the Pomerado Business Park
were assessed at a higher rate. Since 1995, Parkway Business Centre III, Poway Corporate
Center and other miscellaneous properties were added at the higher assessment rate.
Currently, the Existing District contains 514 assessed properties, including 196 residential
properties. Current annual assessments are $210.68 for residential properties, and $790 or
$842.68 for commercial properties.
The Existing District is comprised of approximately 4,849,060 square feet of landscaping and
4,858 trees. In addition to the landscaping materials (trees, turf and shrubs), the District is also
responsible for maintaining irrigation infrastructure (controllers, pumps, timers, pipes and
emitters). The types of services that are contracted out include irrigation maintenance, mowing,
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 and
tree maintenance job classifications; therefore, a substantial increase in labor costs will continue
to burden the Existing District. This, combined with the need to replace aging infrastructure 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.
Consequently, there are no longer sufficient funds being collected to keep pace with expenses.
Without an increase in the assessments, the Existing District will not be able to upgrade
irrigation systems to be water efficient, execute ongoing repairs, and replace and preserve
landscaping; ultimately resulting in a reduction of services. Staff is concerned that over time this
3 of 49 April 2, 2019, Item # }• 2
Initiation of Proceeding for the Formation Landscape Maintenance District 19-1
April 2, 2019
Page 4
will result in poor appearance.
Recognizing the need to increase the revenue 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 provided by the City. 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, it cannot continue 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 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 and the Landscape and Lighting Act of 1972. 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 Existing District should be reorganized by
detaching certain commercial parcels from the Existing District and forming a new landscape
maintenance district (Proposed District) that includes the detached commercial parcels and
additional parcels that were not included in the Existing District but receive special benefits from
the improvements to be maintained within the Proposed District. The detachment of the
commercial properties from the Existing District would be conditioned upon the formation of the
Proposed District. As part of the reorganization, the existing residential development areas
within LMD 87-1 would remain part of LMD 87-1.
The Proposed District would 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 would be included along with the proposed assessments on an
annual basis. Accordingly, if approved, the maximum assessment rates established for the
improvements in the previous fiscal year 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 revenues to keep pace with inflationary cost increases over time.
The effort to re-engineer the Existing District began in 2018 by evaluating the relationship of the
properties currently being assessed relative to the location and the nature and extent of the
landscape improvements.
Based on the location of the improvements and proximity to all parcels in the area, the Engineer
initially identified several parcels/developments that are not part of the Existing District but
receive special benefit from the landscape improvements and maintenance services and should
therefore be added to the Proposed District (Attachment D). 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.
4 of 49 April 2, 2019, Item #Lt•2
Initiation of Proceeding for the Formation Landscape Maintenance District 19-1
April 2, 2019
Page 5
Also, the Engineer identified 288,708 square feet of landscaping to be removed from the
Proposed District to be funded by the General Fund, 29,653 square feet of landscaping to be
shared between the remainder of the Existing District and the Proposed District, and 21,238
square feet to be shared between the Proposed District and the General Fund.
A special benefit means a distinct benefit over and above general benefits conferred on real
property and the public at large. 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.
Using the Engineer's preliminary analysis, staff held a series of meetings/open houses in
February and March 2019 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 Existing District, form the Proposed District, establish assessments in the Proposed District
and provide for inflationary adjustments to the proposed maximum assessments.
Assessments are computed based on the number of equivalent benefit units (EBU) in the
Proposed District.
The Proposed District assessment rates for an EBU is $840.00 annually. If the Proposed
District is formed, properties located within the Parkway Business Centre, Poway Corporate
Centre and Tech Center will experience an increase in their annual maximum assessment from
$790 to $840 per EBU and those properties within Pomerado Business Park, Parkway Summit
and other miscellaneous properties will experience a decrease in their annual maximum
assessment from $842.68 to $840. Additionally, a provision has been included to allow for
appropriate inflationary adjustments in future assessments, at the discretion of the City Council,
in line with the San Diego Consumer Price Index (capped annually at 3%).
General Benefit
If the Proposed District is formed, the City will provide 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 would typically provide 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 or the public at large, they do provide some measure of indirect general benefit to
other properties in the City and the public at large. Therefore, the general benefit contribution
for the Proposed District is assumed to be an additional 13% of the overall maintenance cost to
account for this indirect, general benefit. The proposed annual general benefit contribution by
5 of 49 April 2, 2019, Item # 7-
Initiation of Proceeding for the Formation Landscape Maintenance District 19-1
April 2, 2019
Page 6
the City for Fiscal Year 2019-20 is approximately $143,235.
Procedural Requirements:
As set forth in the Landscaping and Lighting Act of 1972 and Proposition 218, local agencies
are required to follow these steps:
1. Adopt a resolution to initiate formation of an assessment district and direct the Engineer
to prepare and file a report in accordance with Streets and Highway Code (April 2, 2019)
and direct the City Clerk to mail a notice of the Public Hearing which will include a ballot
for the affected property owner to indicate his or her support for or opposition to the
proposed assessment. A draft Resolution of Initiation is enclosed as Attachment A. The
Preliminary Engineer's Report prepared by Willdan Financial Services is enclosed as
Attachment C and will be posted on the City's website.
2. Adopt a resolution declaring its intent to: (i) approve a Preliminary Engineer's Report
and schedule the Public Hearing (May 21, 2019); (ii) form the Proposed District;
(iii) detach properties from the Existing District, subject to and conditioned upon the
formation of the Proposed District; and (iv) provide for an annual levy and collection of
assessment. A draft Resolution of Intent is enclosed as Attachment B.
3. Develop a Notice of Public Hearing (scheduled for May 21, 2019) on the formation of the
Proposed District, prepare a Ballot, and send both documents to the owner of record for
each parcel 45 days in advance of the Public Hearing (on or before April 5, 2019).
4. The City Clerk is to collect all ballots received prior to the close of the Public Hearing that
is proposed to be scheduled on May 21, 2019, at 7:00 p.m. The ballots will be tabulated,
and the results will be presented to the City Council later in the City Council meeting that
evening or at a subsequent City Council Meeting.
5. If a majority of the submitted ballots support the formation of the Proposed District, the
City Council may elect to establish and form the Proposed District. If the Proposed
District is established and formed, the parcels currently included in the Existing District
and identified in Exhibit A to the resolution of intention to form the Proposed District will
be detached from the Existing District. Adopt a resolution ordering the annual levy of
assessments within the Proposed District (May 21, 2019). 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 2019-20.
6. 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 (May 21, 2019). This means that the Existing District, and current assessments
(without a cost escalator) will remain in effect. •
7. Submit levies to the County of San Diego (no later than August 9, 2019).
6 of 49 April 2, 2019, Item # �•2
Initiation of Proceeding for the Formation Landscape Maintenance District 19-1
April 2, 2019
Page 7
For a benefit assessment such as this, each property owner of record must be mailed a notice
and a ballot to mark and mail back. The ballots and notice of the Public Hearing are required to
be mailed not less than 45 days prior to the public hearing and the outcome is determined only
from the ballots timely returned and received (not the total number of properties). Each ballot
will show the exact amount of that property's proposed assessment. A majority protest exists if,
upon the conclusion of the public hearing, ballots submitted in opposition to the assessment
exceed the ballots submitted in favor of the assessment. In tabulating the ballots, the ballots
are weighted according to the proportional financial obligation (i.e., dollar amount of the
assessment) of the affected property. Tabulation of the ballots will be conducted under the
supervision and direction of the City Clerk.
If the Council does not adopt the Resolutions shown in steps 1 and 2 above, the ballot protest
cannot move forward. Due to time constraints, the only option would be for the Existing District,
and current assessments (without a cost escalator), to remain in effect. As stated earlier in this
report, the Existing District assessments fall short of covering expenses. Without an increase in
the assessments, service levels will decline.
Environmental Review:
This item is not subject to California Environmental Quality Act review.
Fiscal Impact:
The Proposed District, if approved, will generate an estimated Fiscal Year 2019-20 annual
assessment and general fund contribution revenues of approximately $737,467 and $143,235,
respectively, to cover the operations and maintenance expenditures. Anticipated annual
expenses of the Proposed District are $880,048.
Public Notification:
Below is a summary of staffs efforts to communicate with affected property owners:
• Held two (2) Open Houses at the City Council Chambers
(March 13 and March 27, 2019);
• Posted an interactive map showing current and proposed assessments, a FAQ
sheet, question and answers, and the previous year's Engineer's Report on a
dedicated page on the City's website;
• Met with individual property owners at City Hall; and
• Fielded phone calls with property owners, Poway Business Park Association, brokers
and property management companies.
Affected property owners were also made aware of this item by direct letter sent to all
property owners within the Proposed District.
•
7 of 49 April 2, 2019, Item # 2
•
Initiation of Proceeding for the Formation Landscape Maintenance District 19-1
April 2, 2019
Page 8
Attachments:
A. Resolution initiating proceedings for the formation of LMD 19-1 and directing the
preparation of and filing of an Engineer's Report
B. Resolution declaring the City's intention to form Landscape Maintenance District
No. 19-1; and to levy and collect annual assessments related thereto, commencing
Fiscal Year 2019-20
C. Preliminary Engineer's Report 19-1
D. Map of Proposed LMD 19-1
Reviewed/Approved By: Reviewed By: Approved By:
Wendy Kaserman Alan Fenstermacher Tina M. White
Assistant City Manager City Attorney City Manager
8 of 49 April 2, 2019, Item # 2-
RESOLUTION NO. 19-
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
POWAY, CALIFORNIA, INITIATING PROCEEDINGS FOR THE
FORMATION OF LANDSCAPE MAINTENANCE DISTRICT NO.
19-1; DIRECTING THE PREPARATION AND FILING OF AN
ENGINEER'S REPORT RELATED THERETO, PURSUANT TO
THE PROVISIONS OF PART 2 OF DIVISION 15 OF THE
CALIFORNIA STREETS AND HIGHWAYS CODE; AND
INITIATING PROCEEDINGS TO DETACH TERRITORY FROM
CITY OF POWAY LANDSCAPE MAINTENANCE DISTRICT 87-1
WHEREAS, pursuant to the provisions of the Landscaping and Lighting Act of 1972,
California Streets and Highways Code section 22500 et seq. (the "1972 Act"), the City Council
of the City of Poway (the "City"), desires to initiate proceedings for the formation of an
assessment district within the City to be known and designated as Landscape Maintenance
District No. 19-1 (the "District"), and to levy and collect annual assessments for the District
commencing in Fiscal Year 2019-20 to pay, in whole or in part, for the special benefit costs
associated with the operation, maintenance, installation, and servicing of local landscaping
improvements and appurtenant facilities related thereto;
WHEREAS, pursuant to the provisions of section 22605 et seq. of the 1972 Act, the City
also desires to initiate proceedings to detach territory from the City's Landscape Maintenance
District 87-1 ("LMD 87-1") and to include such territory in the District;
WHEREAS, pursuant to section 22585 of the 1972 Act, proceedings for the formation of
an assessment district shall be initiated by resolution and that resolution shall generally describe
the proposed improvements, describe the proposed assessment district and specify a distinctive
designation for the district, and order the engineer to prepare and file a report in accordance
with section 22565 et seq. of the 1972 Act;
WHEREAS, pursuant to Section 22606 of the 1972 Act, proceedings to detach territory
from LMD 87-1 may be undertaken concurrently with proceedings for the formation of the
District and such proceedings may be conditioned on the completion of the proceedings to form
the District;
WHEREAS, the City has retained Willdan Financial Services ("Willdan") as the
Assessment Engineer of Work for the purpose of assisting with the formation of the District, the
establishment of annual assessments, and to prepare and file a report with the City Clerk
concerning the formation of Landscape Maintenance District No. 19-1 and the proposed annual
levy of assessments in accordance with the 1972 Act and the provisions of the California
Constitution Article XIIID (the "Constitution") and the Proposition 218 Omnibus implementation
Act, being Government Code section 53750 et seq. (the "Omnibus Act"); and
WHEREAS, the properties proposed to be detached from LMD 87-1 if the District is
formed are identified in Exhibit A to this Resolution, and by this reference are incorporated
herein.
9 of 49 ATTACHMENT A April 2, 2019, Item #4.2
Resolution No. 19-
Page 2
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: That the City proposes to form Landscape Maintenance District No. 19-1
incorporating all lots and parcels of land located in the southern region of the City, generally
east of Pomerado Road, west and north of the City limits, and south of Metate Lane for which
the improvements provide special benefits; and to levy and collect annual assessments for the
District commencing in Fiscal Year 2019-20 to pay for the special benefit expenses associated
with the operation, maintenance, installation and servicing of the local landscaping
improvements and appurtenant facilities as authorized by the 1972 Act.
Section 3: The territory within the District as described above incorporates
approximately three hundred sixty (360) parcels totaling approximately one thousand six
hundred seventy-eight (1,678) acres which are inclusive of parcels identified on the San Diego
County Assessor's Parcel Maps (APN Maps) as Book 317 Pages 22, 23, 27, 28 and 81; Book
320 Pages 01, 03, 20 and 22; and Book 323 Pages 09, 48, 49, and 50.
Section 4: That the improvements to be provided by the District generally include,
but are not limited to, the installation, maintenance, operation and servicing of local landscaping
improvements and appurtenant facilities that are provided for the benefit of real property within
the District. The improvements to be provided by the District include landscaping within
specified public areas, rights-of-way and/or dedicated easements that have been installed in
connection with the development of properties for the benefit of those properties and/or
proportionately shared with 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 authorized by the 1972 Act.
Section 5: In accordance with Section 22586 of the 1972 Act, the City Council
hereby directs the Assessment Engineer of Work to prepare and file with the City Clerk an
Engineers Report concerning the formation of the District; the improvements connected
therewith and the annual levy of assessments commencing with the Fiscal Year 2019-20, in
accordance with Chapter 1, Article 4 (commencing with Section 22565) of the 1972 Act.
10 of 49 April 2, 2019, Item #4.2
Resolution No. 19-
Page 3
PASSED, ADOPTED AND APPROVED by the City Council of the City of Poway,
California, ata regular meeting this 2nd day of April 2019.
Steve Vaus, Mayor
ATTEST:
Faviola Medina, CMC, City Clerk
STATE OF CALIFORNIA )
SS
COUNTY OF SAN DIEGO )
I, Faviola Medina, City Clerk of the City of Poway, California, do hereby certify under penalty of
perjury that the foregoing Resolution No. 19- was duly adopted by the City Council at a
meeting of said City Council held on the 2nd day of April 2019, and that it was so adopted by
the following vote:
AYES:
NOES:
ABSENT:
DISQUALIFIED:
Faviola Medina, CMC, City Clerk
City of Poway
11 of 49 April 2, 2019, Item #4.2
Resolution No. 19-
Page 4
RESOLUTION NO. 19-_
EXHIBIT A
Assessor Parcels to be Detached from Landscape Maintenance District No. 87-1
317-222-12-00 317-222-23-00 317-222-24-00 317-222-25-00 317-222-26-00
317-222-27-00 317-223-01-00 317-223-02-00 317-223-03-00 317-223-04-00
317-223-05-00 317-223-07-00 317-223-11-00 317-223-12-00 317-223-13-00
317-223-14-00 317-223-15-00 317-223-18-00 317-223-19-00 317-223-20-00
317-223-21-00 317-223-27-01 317-223-27-02 317-223-28-00 317-223-30-00
317-223-31-00 317-223-32-00 317-223-33-00 317-223-37-00 317-223-38-00
317-223-39-00 317-224-01-00 317-224-06-00 317-224-07-00 317-224-15-00
317-224-16-00 317-224-18-00 317-224-19-00 317-224-20-00 317-224-21-00
317-224-22-00 317-224-23-00 317-224-24-00 317-225-01-00 317-225-04-00
317-225-05-00 317-225-06-00 317-225-07-00 317-225-10-00 317-225-11-00
317-225-12-00 317-225-13-00 317-225-14-00 317-225-15-00 317-225-16-00
317-225-17-00 317-225-18-00 317-270-08-00 317-270-09-01 317-270-09-02
317-270-09-03 317-270-09-04 317-270-09-05 317-270-09-06 317-270-09-07
317-270-09-08 317-270-09-09 317-270-09-10 317-270-09-11 317-270-09-12
317-270-09-13 317-270-09-14 317-270-10-01 317-270-10-02 317-270-10-03
317-270-10-04 317-270-10-05 317-270-10-06 317-270-10-07 317-270-10-08
317-270-10-09 317-270-10-10 317-270-10-11 317-270-10-12 317-270-10-13
317-270-10-14 317-270-11-00 317-270-12-00 317-270-13-00 317-270-14-00
317-270-15-00 317-270-16-00 317-270-18-00 317-270-19-00 317-270-20-00
317-270-21-00 317-270-22-00 317-270-23-00 317-270-24-00 317-270-25-00
317-270-31-00 317-270-32-00 317-270-40-00 317-270-41-00 317-270-42-00
317-270-43-00 317-270-44-00 317-270-45-00 317-270-46-00 317-270-49-00
317-270-50-00 317-270-51-00 317-270-54-00 317-270-55-00 317-270-56-00
317-270-59-00 317-270-60-00 317-270-61-00 317-270-62-00 317-270-63-00
317-271-02-00 317-271-03-00 317-271-04-00 317-271-09-00 317-271-10-00
317-271-12-00 317-271-13-00 317-271-15-00 317-271-16-00 317-271-18-00
317-271-19-00 317-271-20-00 317-271-21-00 317-271-25-00 317-271-26-00
317-271-27-00 317-271-28-00 317-271-33-00 317-271-34-00 317-271-35-00
317-271-41-00 317-271-42-00 317-271-46-00 317-271-48-00 317-271-49-00
317-271-51-00 317-271-56-00 317-271-57-00 317-271-58-00 317-271-59-00
317-271-62-00 317-271-63-00 317-271-67-00 317-271-68-00 317-271-74-00
317-271-75-00 317-271-77-00 317-271-80-00 317-271-81-00 317-271-82-00
317-271-83-00 317-271-84-00 317-271-85-00 317-271-86-00 317-271-87-00
A-1
12 of 49 April 2, 2019, Item #4.2
Resolution No. 19-
Page 5
317-271-89-00 317-271-91-00 317-271-92-00 317-271-93-00 317-271-94-00
317-271-95-00 317-271-96-00 317-280-21-00 317-280-35-00 317-280-36-00
317-280-37-00 317-280-47-00 317-280-48-00 317-280-56-00 317-280-57-00
317-280-58-00 317-280-60-00 317-280-63-00 317-280-65-00 317-280-66-00
317-280-68-00 317-280-70-00 317-280-71-00 317-280-72-00 317-280-73-00
317-280-74-00 317-280-75-00 317-280-76-00 317-280-77-00 317-280-78-00
317-280-79-00 317-280-80-00 317-280-82-00 317-280-83-00 317-280-85-00
317-280-86-00 317-281-08-00 317-281-09-00 317-281-10-00 317-281-11-00
317-281-14-00 317-281-15-00 317-281-16-00 317-281-22-00 317-281-23-00
317-281-24-00 317-281-25-00 317-281-26-00 317-281-27-00 317-281-29-00
317-810-04-00 317-810-05-00 317-810-09-00 317-810-12-00 317-810-13-00
317-810-14-00 317-810-15-00 317-810-16-00 317-810-17-00 317-810-18-00
317-810-19-00 317-810-23-00 317-810-24-00 317-810-28-00 317-810-29-00
317-810-30-00 317-810-31-00 317-810-32-00 317-810-33-00 317-810-36-00
317-810-37-00 317-810-38-00 320-011-27-00 320-200-46-00 320-200-47-00
320-200-48-00 320-200-49-00 320-200-50-00 320-220-02-00 320-220-03-00
320-220-04-00 320-220-05-00 320-220-06-00 320-220-07-00 320-220-12-00
320-220-15-00 320-220-16-00 320-220-18-00 320-220-21-00 320-220-22-00
320-220-24-00 320-220-25-00 323-091-08-00 323-091-09-00 323-091-10-00
323-091-11-00 323-091-12-00 323-092-17-00 323-092-18-00 323-092-20-00
323-092-21-00 323-092-22-00 323-092-23-00 323-092-24-00 323-092-25-00
323-092-26-00 323-092-27-00 323-092-28-00 323-092-29-00 323-092-31-00
323-092-32-00 323-092-33-00 323-092-34-00 323-092-35-00 323-092-37-00
323-092-38-00 323-480-03-00 323-480-04-00 323-480-10-00 323-480-11-00
323-480-12-00 323-480-13-00 323-480-14-00 323-480-16-00 323-480-18-00
323-480-19-00 323-480-20-00 323-480-21-00 323-480-22-00 323-480-23-00
323-481-02-00 323-481-03-00 323-481-10-00 323-481-11-00 323-481-12-00
323-481-13-00 323-481-14-00 323-481-15-00 323-481-16-00 323-481-19-00
323-482-20-00 323-482-22-00 323-482-23-00 323-482-24-00 323-482-25-00
323-482-26-00 323-482-29-00 323-482-30-00 323-500-12-00 323-500-15-00
323-500-20-00 323-500-22-00 323-500-23-00 323-500-25-00 323-500-27-00
323-500-28-00 323-500-29-00 323-501-01-00 323-501-02-00 323-501-03-00
323-501-04-00 323-501-05-00
A-2
13 of 49 April 2, 2019, Item #4.2
RESOLUTION NO. 19-
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
POWAY, CALIFORNIA, DECLARING THE CITY'S INTENTION TO
FORM LANDSCAPE MAINTENANCE DISTRICT NO. 19-1 AND
TO LEVY AND COLLECT ANNUAL ASSESSMENTS RELATED
THERETO COMMENCING FISCAL YEAR 2019-20, PURSUANT
TO THE PROVISIONS OF PART 2 OF DIVISION 15 OF THE
CALIFORNIA STREETS AND HIGHWAYS CODE; CALLING FOR
A PROPERTY OWNER PROTEST PROCEEDING, TO SUBMIT
TO THE QUALIFIED PROPERTY OWNERS THE QUESTION OF
LEVYING SUCH ASSESSMENTS AND ESTABLISHING AN
ASSESSMENT RANGE FORMULA FOR SAID DISTRICT
PURSUANT TO THE PROVISIONS OF THE CALIFORNIA
CONSTITUTION, ARTICLE XIII D; AND DECLARING ITS
INTENTION TO DETACH PARCELS OF PROPERTY FROM
LANDSCAPE MAINTENANCE DISTRICT 87-1
WHEREAS, the City Council of the City of Poway (the "City"), pursuant to provisions of
the Landscaping and Lighting Act of 1972, California Streets and Highways Code section 22500
et seq. (the "1972 Act"), did by previous Resolution, initiate proceedings for the formation of an
assessment district within the City to be known and designated as Landscape Maintenance
District No. 19-1 (the "District"), and to levy and collect annual assessments for the District
commencing in Fiscal Year 2019-20 to pay, in whole or in part, for the special benefit costs
associated with the operation, maintenance, installation and servicing of local landscaping
improvements and appurtenant facilities related thereto;
WHEREAS, pursuant to section 22605 et seq. of the 1972 Act, certain lots and parcels of
land currently located in City of Poway Landscape Maintenance District 87-1 ("LMD 87-1") are
proposed to be detached therefrom and included in the District, such lots and parcels of land are
identified in Exhibit A of this Resolution (the "Detached Parcels");
WHEREAS, pursuant to section 22606 of the 1972 Act, proceedings to detach the
Detached Parcels from LMD 87-1 may be undertaken concurrently with proceedings for the
formation of the District;
WHEREAS, pursuant to section 22606 of the 1972 Act, the detachment of the Detached
Parcels may be conditioned upon the formation of the District;
• WHEREAS, the City Council intends to: (i) conduct a property owner ballot protest
proceeding regarding the proposed assessments in compliance with the substantive and
procedural requirements of California Constitution article XIII D, section 4 (the "California
Constitution") and the Proposition 218 Omnibus Implementation Act (the "Omnibus Act"), being
Government Code section 53750 et seq.; (ii) form the District; (iii) detach the Detached Parcels,
subject to and conditioned upon the formation of the District; and (iv) levy and collect new
assessments against lots and parcels of land within the District to pay the cost and expenses
related to the special benefits received from the operation, maintenance, installation, and
servicing of landscaping improvements, and appurtenant facilities related thereto; and
14 of 49 ATTACHMENT B April 2, 2019, Item #4.2
Resolution No. 19-
Page 2
WHEREAS, the Assessment Engineer of Work has prepared and filed an Engineer's
Report with the City Clerk regarding the formation of the District and the levy of annual
assessments connected therewith commencing in Fiscal Year 2019-20 (beginning July 1, 2019
and ending June 30, 2020), pursuant to section 22586 of the 1972 Ad, and said report has been
presented to the City Council and is incorporated herein by reference.
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 Engineer's Report as presented, consists of the following:
Section 2a: The Plans and Specifications which describe the boundaries of the District,
the zones of benefit ("Zones") established therein and the improvements associated therewith
that provide special benefits to the parcels therein;
Section 2b: The Method of Apportionment that details the method of calculating
proportional special benefit and the annual assessment obligation for each affected parcel;
Section 2c: The Estimate of Improvement Costs, including the calculation of the
assessments and the estimated annual funding (Budget) required for the annual operation,
maintenance, installation, and servicing of the landscaping improvements and appurtenant
facilities, and specifically the costs associated with the improvements determined to be of special
benefit to parcels within the District, establishing the proposed maximum assessments and the
assessments for Fiscal Year 2019-20;
Section 2d: The Assessment Range Formula (Annual Inflationary Adjustment) to be
applied to the proposed Maximum Assessment Rates per Equivalent Benefit Unit in subsequent
fiscal years. The proposed Maximum Assessments including the Assessment Range Formula
shall be presented to the property owner(s) of record in a protest ballot proceeding pursuant to
the California Constitution and the Omnibus Act;
Section 2e: A District Diagram outlining the boundaries of the District and identifying
the Zones therein for Fiscal Year 2019-20; and
Section 2f: Reference to the proposed Assessment Roll on file with the City Clerk,
which contains the proposed maximum assessment and levy of assessment for Fiscal
Year 2019-20 for each Assessor Parcel Number identified within the District.
Section 3: The City Council hereby approves the Engineer's Report on a preliminary
basis as submitted or amended by direction of this City Council, and orders said Report to be filed
in the Office of the City Clerk as a permanent record and to remain open to public inspection, and
by reference the Engineer's Report is made part of this Resolution.
Section 4: The City Council hereby declares its intention to form the assessment
district to be known and designated as Landscape Maintenance District No. 19-1 pursuant to
Chapter 2, Article 1, Section 22587 of the 1972 Act, and to levy and collect annual assessments
against parcels of land within the District commencing with Fiscal Year 2019-20 in accordance
with the 1972 Act and the provisions of the California Constitution.
15 of 49 April 2, 2019, Item #4.2
Resolution No. 19-
Page 3
The City Council further declares its intention to detach the Detached Parcels set forth in
• Exhibit A hereto from LMD 87-1, subject to and conditioned on the formation of the District.
The City Council further declares its intention to conduct a Public Hearing regarding the
District formation and the proposed levy of new assessments pursuant to the provisions of the
1972 Act, the California Constitution, and the Omnibus Act, and thereby calls for a property owner
protest ballot proceeding related thereto. The City Council finds that the public's best interest
requires such action and levy of assessments.
Section 5: The City Council hereby finds that the territory within the proposed District
as identified in the Engineer's Report consists of, and includes those lots, parcels and
subdivisions of land that will receive special benefits from the improvements to be provided.
Section 6: The proposed improvements for the District as identified in the Engineer's
Report generally include, but are not limited to, the installation, maintenance, operation and
servicing of local landscaping improvements and appurtenant facilities that are provided for the
benefit of real property within the District. The improvements to be provided by the District include
landscaping within specified public areas, rights-of-way and/or dedicated easements that have
been installed in connection with the development of properties for the benefit of those properties
and/or proportionately shared with 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 authorized by the 1972 Act. The Engineer's Report
prepared and filed with the City Clerk provides a more detailed description of the improvements
to be provided and for which properties shall be assessed.
Section 7: The City Council hereby determines that to provide the improvements
described in section 6 of this resolution, it is necessary to levy and collect assessments against
lots and parcels within the District commencing in Fiscal Year 2019-20. The Engineer's Report
referred to in Section 2 of this resolution establishes the proposed maximum assessments for the
District including the annual inflationary adjustment to the maximum assessment rate; and the
assessments necessary to provide for the annual operation, administration, services and
maintenance of the improvements commencing in Fiscal Year 2019-20.
Section 8: Pursuant to the California Constitution and in accordance with the Omnibus
Act, an assessment ballot proceeding is hereby called on the matter of confirming the proposed
new assessments for the District. The ballots and notices so authorized shall be distributed by
first class mail to the property owners of record as of the last County equalized roll not less than
45 days prior to the Public Hearing, and each property owner may return the ballot by mail or in
person to the City Clerk not later than the conclusion of the Public Hearing for this matter.
Section 9: The City Council hereby authorizes and directs the City Clerk or her
designee to prepare and mail, or cause to be mailed, notice of the Public Hearing; and in the
same or separate mailing, mail the property owner protest ballot(s) to the subject property owner
regarding the proposed levy of assessments and the assessment range formula outlined in the
Engineer's Report, for return receipt prior to the date and time of the Public Hearing set forth in
this Resolution.
16 of 49 April 2, 2019, Item #4.2
Resolution No. 19-
Page 4
Section 10: The City Council hereby declares its intention to conduct a Public Hearing
concerning the District, the improvements, and the levy of assessments, and the detachment of
the Detached Parcels in accordance with Sections 22588, 22592, 22606, and 22609 of the
1972 Act, notice is hereby given that on Tuesday, May 21, 2019, at 7.00 P.M., the City Council
will hold a Public Hearing for the District, the levy and collection of assessments related thereto
commencing in Fiscal Year 2019-20, or as soon thereafter as feasible, and the detachment of the
Detached Parcels. The Public Hearing will be held in the City Council Chambers, located at
13325 Civic Center Drive, Poway, at the time so fixed. At the Public Hearing, all interested
persons shall be afforded the opportunity to hear and be heard.
Section 11: The property owner protest ballot proceeding conducted for the District
shall constitute the property owners' support for or opposition to the annual levy of assessments
and assessment range formula. Property owners may return their ballot by mail or in person to
the City Clerk not later than the conclusion of the Public Hearing on Tuesday May 21, 2019. After
the close of the Public Hearing, pursuant to Article XIII D, section 4(e) of the California
Constitution, the City shall tabulate the ballots returned to determine if a majority protest exists.
The returned ballots shall be weighted according to the proportional financial obligation of each
affected property. A majority protest exists if, upon the conclusion of the Public Hearing, ballots
submitted in opposition to the assessment exceed the ballots submitted in favor of the
assessment.
Any property owner whose property is proposed to be assessed may submit a ballot to
the City Clerk prior to the conclusion of the Public Hearing, or having previously filed a ballot, may
file a written withdrawal of that ballot. At the Public Hearing, all interested persons shall be
afforded the opportunity to hear and be heard.
Section 12: The City Clerk or her designee is hereby authorized and directed to give
notice of such Public Hearing as provided by law.
PASSED, ADOPTED AND APPROVED by the City Council of the City of Poway,
California, at a regular meeting this 2nd day of April 2019.
Steve Vaus, Mayor
ATTEST:
Faviola Medina, CMC, City Clerk
17 of 49 April 2, 2019, Item #4.2
Resolution No. 19-
Page 5
STATE OF CALIFORNIA )
SS
COUNTY OF SAN DIEGO )
I, Faviola Medina, City Clerk of the City of Poway, California, do hereby certify under penalty of
perjury that the foregoing Resolution No. 19- was duly adopted by the City Council at a
meeting of said City Council held on the 2nd day of April 2019, and that it was so adopted by
the following vote:
AYES:
NOES:
ABSENT:
DISQUALIFIED:
Faviola Medina, City Clerk
City of Poway
18 of 49 April 2, 2019, Item #4.2
Resolution No. 19-
Page 6
RESOLUTION NO. 19-
EXHIBIT A
Assessor Parcels to be Detached from Landscape Maintenance District No. 87-1
317-222-12-00 317-222-23-00 317-222-24-00 317-222-25-00 317-222-26-00
317-222-27-00 317-223-01-00 317-223-02-00 317-223-03-00 317-223-04-00
317-223-05-00 317-223-07-00 317-223-11-00 317-223-12-00 317-223-13-00
317-223-14-00 317-223-15-00 317-223-18-00 317-223-19-00 317-223-20-00
317-223-21-00 317-223-27-01 317-223-27-02 317-223-28-00 317-223-30-00
317-223-31-00 317-223-32-00 317-223-33-00 317-223-37-00 317-223-38-00
317-223-39-00 317-224-01-00 317-224-06-00 317-224-07-00 317-224-15-00
317-224-16-00 317-224-18-00 317-224-19-00 317-224-20-00 317-224-21-00
317-224-22-00 317-224-23-00 317-224-24-00 317-225-01-00 317-225-04-00
317-225-05-00 317-225-06-00 317-225-07-00 317-225-10-00 317-225-11-00
317-225-12-00 317-225-13-00 317-225-14-00 317-225-15-00 317-225-16-00
317-225-17-00 317-225-18-00 317-270-08-00 317-270-09-01 317-270-09-02
317-270-09-03 317-270-09-04 317-270-09-05 317-270-09-06 317-270-09-07
317-270-09-08 317-270-09-09 317-270-09-10 317-270-09-11 317-270-09-12
317-270-09-13 317-270-09-14 317-270-10-01 317-270-10-02 317-270-10-03
317-270-10-04 317-270-10-05 317-270-10-06 317-270-10-07 317-270-10-08
317-270-10-09 317-270-10-10 317-270-10-11 317-270-10-12 317-270-10-13
317-270-10-14 317-270-11-00 317-270-12-00 317-270-13-00 317-270-14-00
317-270-15-00 317-270-16-00 317-270-18-00 317-270-19-00 317-270-20-00
317-270-21-00 317-270-22-00 317-270-23-00 317-270-24-00 317-270-25-00
317-270-31-00 317-270-32-00 317-270-40-00 317-270-41-00 317-270-42-00
317-270-43-00 317-270-44-00 317-270-45-00 317-270-46-00 317-270-49-00
317-270-50-00 317-270-51-00 317-270-54-00 317-270-55-00 317-270-56-00
317-270-59-00 317-270-60-00 317-270-61-00 317-270-62-00 317-270-63-00
317-271-02-00 317-271-03-00 317-271-04-00 317-271-09-00 317-271-10-00
317-271-12-00 317-271-13-00 317-271-15-00 317-271-16-00 317-271-18-00
317-271-19-00 317-271-20-00 317-271-21-00 317-271-25-00 317-271-26-00
317-271-27-00 317-271-28-00 317-271-33-00 317-271-34-00 317-271-35-00
317-271-41-00 317-271-42-00 317-271-46-00 317-271-48-00 317-271-49-00
317-271-51-00 317-271-56-00 317-271-57-00 317-271-58-00 317-271-59-00
317-271-62-00 317-271-63-00 317-271-67-00 317-271-68-00 317-271-74-00
317-271-75-00 317-271-77-00 317-271-80-00 317-271-81-00 317-271-82-00
•
19 of 49 A-1 April 2, 2019, Item #4.2
Resolution No. 19-
Page 7
317-271-83-00 317-271-84-00 317-271-85-00 317-271-86-00 317-271-87-00
317-271-89-00 317-271-91-00 317-271-92-00 317-271-93-00 317-271-94-00
317-271-95-00 317-271-96-00 317-280-21-00 317-280-35-00 317-280-36-00
317-280-37-00 317-280-47-00 317-280-48-00 317-280-56-00 317-280-57-00
317-280-58-00 317-280-60-00 317-280-63-00 317-280-65-00 317-280-66-00
317-280-68-00 317-280-70-00 317-280-71-00 317-280-72-00. 317-280-73-00
317-280-74-00 317-280-75-00 317-280-76-00 317-280-77-00 317-280-78-00
317-280-79-00 317-280-80-00 317-280-82-00 317-280-83-00 317-280-85-00
317-280-86-00 317-281-08-00 317-281-09-00 317-281-10-00 317-281-11-00
317-281-14-00 317-281-15-00 317-281-16-00 317-281-22-00 317-281-23-00
317-281-24-00 317-281-25-00 317-281-26-00 317-281-27-00 317-281-29-00
317-810-04-00 317-810-05-00 317-810-09-00 317-810-12-00 317-810-13-00
317-810-14-00 317-810-15-00 317-810-16-00 317-810-17-00 317-810-18-00
317-810-19-00 317-810-23-00 317-810-24-00 317-810-28-00 317-810-29-00
317-810-30-00 317-810-31-00 317-810-32-00 317-810-33-00 317-810-36-00
317-810-37-00 317-810-38-00 320-011-27-00 320-200-46-00 320-200-47-00
320-200-48-00 320-200-49-00 320-200-50-00 320-220-02-00 320-220-03-00
320-220-04-00 320-220-05-00 320-220-06-00 320-220-07-00 320-220-12-00
320-220-15-00 320-220-16-00 320-220-18-00 320-220-21-00 320-220-22-00
320-220-24-00 320-220-25-00 323-091-08-00 323-091-09-00 323-091-10-00
323-091-11-00 323-091-12-00 323-092-17-00 323-092-18-00 323-092-20-00
323-092-21-00 323-092-22-00 323-092-23-00 323-092-24-00 323-092-25-00
323-092-26-00 323-092-27-00 323-092-28-00 323-092-29-00 323-092-31-00
323-092-32-00 323-092-33-00 323-092-34-00 323-092-35-00 323-092-37-00
323-092-38-00 323-480-03-00 323-480-04-00 323-480-10-00 323-480-11-00
323-480-12-00 323-480-13-00 323-480-14-00 323-480-16-00 323-480-18-00
323-480-19-00 323-480-20-00 323-480-21-00 323-480-22-00 323-480-23-00
323-481-02-00 323-481-03-00 323-481-10-00 323-481-11-00 323-481-12-00
323-481-13-00 323-481-14-00 323-481-15-00 323-481-16-00 323-481-19-00
323-482-20-00 323-482-22-00 323-482-23-00 323-482-24-00 323-482-25-00
323482-26-00 323-482-29-00 323-482-30-00 323-500-12-00 323-500-15-00
323-500-20-00 323-500-22-00 323-500-23-00 323-500-25-00 323-500-27-00
323-500-28-00 323-500-29-00 323-501-01-00 323-501-02-00 323-501-03-00
323-501-04-00 323-501-05-00
A-2
20 of 49 April 2, 2019, Item #4.2
•
1
(0.0„.____
1 1
CITY OF POWAY
Engineer's Report
Formation of
Landscape Maintenance District No. 19-1
Fiscal Year 2019/2020
Intent Meeting: April 2, 2019
Public Hearing: May 21 , 2019
CITY OF POWAY
13325 CIVIC CENTER DRIVE
POWAY, CA 92064
FEBRUARY 2019
PREPARED BY
WILLDAN FINANCIAL SERVICES
WWI LLDAN
Financial Services
21 of 49 ATTACHMENT C April 2, 2019, Item #4.2
ENGINEER'S REPORT AFFIDAVIT
City of Poway
Landscape Maintenance District No. 19-1
District Formation
Fiscal Year 2019/2020
Annual Levy of Assessments
Commencing in Fiscal Year 2019/2020
City of Poway,
County of San Diego, State of California
This Report and the enclosed descriptions, budgets, and diagrams outline the improvements
and assessments being proposed for the consideration of the Poway City Council regarding the
formation of Landscape Maintenance District No. 19-1 for Fiscal Year 2019/2020. 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. 19-1, 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 , 2019.
Willdan Financial Services
Assessment Engineer
On Behalf of the City of Poway
By:
Jim McGuire
Principal Consultant
By:
Richard Kopecky
R.C.E. # 16742
22 of 49 Agril'2, 2019, Item #4.2
Table of Contents
Introduction 1
Ballot Proceedings 2
Report Content 3
Part I - Plans and Specifications 6
Description of the District 6
Part II - Method of Apportionment 10
Legislative Authority and Provisions 10
Benefit Analysis 11
Assessment Methodology 14
Part Ill - Estimate of Costs 18
Calculation of Assessments 18
District Budgets and Assessments 19
Assessment Range Formula 21
Part IV - District Diagram 23
Part V - Assessment Roll 25
23 of 49 April 2, 2019, Item #4.2
Landscape Maintenance District No. 19-1
Engineer's Report
Fiscal Year 2019/2020
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 XIIID,
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"), proposes to reorganize the City's previously established Landscape Maintenance District
No. 87-1 ("LMD No. 87-1) by detaching certain territory from LMD No. 87-1 and forming a new
landscape maintenance district that includes the detached territory and new parcels. These
change proceedings are being made to better address the estimated special benefit
improvement costs and proportional special benefits received by each property associated with
the various improvements being provided in the area.
As part of this district reorganization, the existing residential development areas within LMD No.
87-1 (residential territories) are proposed to remain part of LMD No. 87-1 for fiscal year
2019/2020. This residential territory includes the parcels comprising the Valencia Creek
Condominiums located west of Pomerado Road and north of Scripps Poway Parkway; the
single-family residential development area identified as Map 13542 - Poway TCT No. 88-04R
and Map 13364 - Poway TCT No. 88-04R located west of Pomerado Road and south of Scripps
Poway Parkway; and various residential properties located between Pomerado Road and Creek
Road north of Beeler Canyon Road. The parcels within these residential territories will remain
part of LMD No. 87-1 and are not being balloted for new or increased annual assessments as
part of these proceedings. Therefore, the improvements, expenses and assessments
associated with these residential parcels are not specifically addressed in this engineer's report.
The new special benefit landscape maintenance assessment district is proposed to be
designated as:
Landscape Maintenance District No. 19-1
(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 Landscape Maintenance District No. 19-1, and to levy annual
assessments on the County tax rolls for the benefit of properties therein commencing in Fiscal
Year 2019/2020 to fund the estimated special benefit improvement costs that are considered
necessary to maintain and service those 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
into the District each parcel that will receive special benefits from those improvements and the
maintenance and servicing thereof.
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
WWILLDAN
24 of 49 April 2, 2019, Item #4.2
Landscape Maintenance District No. 19-1
Engineer's Report
Fiscal Year 2019/2020
Year 2019/2020. If any section, subsection, sentence, clause, phrase, or portion 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, or portion
thereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses,
phrases, or portions 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. 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. The net annual cost to provide the improvements is allocated to the benefiting
properties using a weighted method of apportionment (refer to Assessment Methodology in Part
II, 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 estimated cost of the improvements, maintenance, and servicing, and the proposed annual
assessments budgeted and assessed against properties each fiscal year 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 testimony, 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."
WILLDAN
25 of 4aa�ai Services
April 2, 2019, Item #4.2
Landscape Maintenance District No. 19-1
Engineer's Report
Fiscal Year 2019/2020
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 on these parcels to support the landscaping improvements
currently provided and funded through Landscape Maintenance District No. 87-1 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, the City Council may in the same
resolution or in a sperate resolution, detach the territory and improvements within the District
from Landscape Maintenance District No. 87-1, and will discontinue the levy of LMD No. 87-1
assessments for such parcels beginning in Fiscal Year 2019/2020.
The assessment rates and method of apportionment described in this Report, as approved or
modified by the City Council, establishes the Fiscal Year 2019/2020 maximum assessment rate
for the District 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 2019/2020 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, improvements,
budget, 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 as calculated and 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. 19-1 and the levy of assessments commencing in Fiscal Year 2019/2020, pursuant
to a resolution of the City Council and consists of five (5) parts:
Part I - Plans and Specifications:
This section of the Report contains an overall description of the District, 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 therein, 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.
W
WILLDAN
26 of Financial Services
April 2, 2019, Item #4.2
Landscape Maintenance District No. 19-1
Engineer's Report
Fiscal Year 2019/2020
Part II - Method of Apportionment
This section provides a discussion of the general and special benefits associated with the
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 III - Estimate of Costs
This section of the Report contains an estimate of the total annual costs to install, operate,
maintain, and service the local landscaping improvements and appurtenant facilities within the
District. The estimated annual expenses (budget) includes an estimate of the maintenance
costs and incidental expenses (as defined in the 1972 Act) including, but not limited to: labor,
• materials, 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 per equivalent benefit unit (the
"Maximum Assessment Rate Per EBU") identified in the budget establishes the maximum
assessment rate as of Fiscal Year 2019/2020 and this maximum assessment rate shall be
adjusted annually by an inflationary adjustment (Assessment Range Formula) , which is 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 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 is formed and the
assessments are approved, the City Council, at its discretion, may in the future 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 proposed District
for Fiscal Year 2019/2020 which incorporates each of the parcels that receives special benefits
from the 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 Assessors 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.
W'
WI LLDAN
27 of 49 April April 2, 2019, Item #4.2
Landscape Maintenance District No. 19-1
Engineer's Report
Fiscal Year 2019/2020
Part V - Assessment Roll
A listing of all Assessor Parcel Numbers of the properties within the District and each parcel's
corresponding Fiscal Year 2019/2020 maximum assessment amount ("Balloted Maximum
Assessment") and assessment amount proposed to be levied and collected for Fiscal Year
2019/2020 ("Assessment FY 2019/2020"). The proposed assessment amounts balloted and to
be levied and collected for Fiscal Year 2019/2020 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 budget provided in the Estimate of
Costs (Part Ill 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.
WWILLDAN
28 of 49a"`���`e' April 2, 2019, Item #4.2
Landscape Maintenance District No. 19-1
Engineer's Report
Fiscal Year 2019/2020
Part I - Plans and Specifications
Description of the District
The District is within the City of Poway in the southern region of the City, comprised of the non-
residential and vacant properties generally located north of Beeler Canyon Road and the City
limits, east of Old Pomerado Road and the City limits, west of Sycamore Canyon 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 317 Pages 22, 27, 28, and 81;
Book 320 Pages 01, 20, and 22; and
Book 323 Pages 09, 48 and 50
Description of the Improvements
As authorized by the 1972 Act, the proposed improvements to be provided by the District
incorporates 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 proportionately shared with nearby adjacent
developments, or were otherwise considered necessary or required for the development of
properties within the District to their full and best use and/or the adjacent developments that
proportionately benefit and share those improvements. 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.
WWILLDAN
29 of 49 5 , April 2, 2019, Item #4.2
Landscape Maintenance District No. 19-1
Engineer's Report
Fiscal Year 2019/2020
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; 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
designated non-street landscaping and/or vegetation management areas, including, but not
limited to, open space areas, greenbelts, and landscaping located adjacent to the properties
within the District.
The improvements within this District provide direct advantages to the parcels in the District
(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 are proportionately assessed, in whole or in part, for the special benefits
they receive from the improvements. 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
improvement plans, and specifications are made part of this Report. The parcels within District
are proportionately assessed, in whole or in part, for the special benefits they receive from the
overall landscape improvements within the District, including, but not limited to, landscape areas
on and around Pomerado Road, Community Road, Stowe Drive, Scripps Poway Parkway,
Treadwell Drive, and Creek Road. The landscape improvements are dispersed throughout the
District in immediate proximity to each of the assessed parcels and are generally summarized
by the following:
34,462 square feet of streetscape landscaping located on the east side of Pomerado Road
from Stowe Drive to approximately 730 feet north of Stowe Drive.
• 7,024 square feet of landscaped median and 1,959 square feet of hardscaped median on
Pomerado Road north of Stowe Drive. These improvements provide a shared benefit to
properties on both sides of Pomerado Road and are therefore equally funded by the District
and another revenue sources (General Fund and/or LMD No. 87-1).
> 120,224 square feet of streetscape landscaping located on the east side of Pomerado Road
between Stowe Drive and Scripps Poway Parkway.
> 30,168 square feet of landscaped median and 2,853 square feet of hardscaped median
located on Pomerado Road between Stowe Drive and Scripps Poway Parkway. These
median improvements provide a shared benefit to properties on the west side of Pomerado
Road and are therefore equally funded by the District and other revenue sources (General
Fund and/or LMD No. 87-1).
• 7,932 square feet of streetscape landscaping located on the south side of Scripps Poway
Parkway between the western City limit and Pomerado Road (that portion adjacent to the
District parcels). The remaining 199,333 square feet of landscaping on the south side of
Scripps Poway Parkway between the western City limit and Pomerado Road is not part of
LMD No. 19-1 and not assessed).
• 11,362 square feet of landscaped median and 1,366 square feet of hardscaped median
located on Scripps Poway Parkway between the western City limit and Pomerado Road.
These median improvements provide a shared benefit to properties on both sides of
Pomerado Road and are therefore equally funded by the District and other revenue sources
(General Fund and/or LMD No. 87-1).
WW I LLDAN
i, Financial Services
30 of 49 April 2, 2019, Item #4.2
Landscape Maintenance District No. 19-1
Engineer's Report
Fiscal Year 2019/2020
• 39,687 square feet of streetscape landscaping located on the south side of Treadwell Drive
between Pomerado Road and 828 feet west of Pomerado Road. These landscape
improvements provide a shared benefit to properties in the District and the residential
development south of Treadwell Drive (LMD No. 87-1) and are therefore equally funded by
the District and LMD No. 87-1).
• 5,704 square feet of landscaped median and 1,657 square feet of hardscaped median area
located on Pomerado Road between Treadwell Drive and the southern City limits. These
median improvements provide a shared benefit to properties on both sides of Pomerado
Road and are therefore equally funded by the District and other revenue sources (General
Fund and/or LMD No. 87-1).
> 48,785 square feet of streetscape located on the west and east sides of Pomerado Road
between Scripps Poway Parkway and Treadwell Drive.
• 3,675 square feet of landscaped median and 1,971 square feet of hardscaped median on
Pomerado Road between Scripps Poway Parkway and Treadwell Drive.
• 16,528 square feet of streetscape landscaping located on the north side of Creek Road
between Pomerado Road and 345 feet east of Pomerado Road.
• 954,945 square feet of streetscape landscaping located on the north and south side of
Scripps Poway Parkway between Pomerado Road and Kirkham Road.
D 52,151 square feet of landscaped median and 1,654 square feet of hardscaped median on
Scripps Poway Parkway between Pomerado Road and Kirkham Road.
• 133,059 square feet of streetscape landscaping located on the north and south sides of
Scripps Poway Parkway between Kirkham Road and Community Road.
• 11,630 square feet of landscaped median and 4,835 square feet of hardscaped median on
Scripps Poway Parkway between Kirkham Road and Community Road.
> 24,247 square feet of streetscape landscaping located on the east and west sides of
Community Road between Scripps Poway Parkway and Gregg Street.
• 288,761 streetscape landscaping located on the north and south sides of Scripps Poway
Parkway between Community Road and Parkway Centre Drive.
• 31,701 square feet of landscaped median and 25,834 square feet of hardscaped median on
Scripps Poway Parkway between Community Road and Parkway Centre Drive.
• 159,212 square feet of streetscape located on the north and south sides of Scripps Poway
Parkway between Parkway Centre Drive and Stowe Drive.
• 23,355 square feet of landscaped median and 19,951 square feet of hardscaped median on
Scripps Poway Parkway between Parkway Centre Drive and Stowe Drive.
• 18,394 square feet of streetscape landscaping located on the west side of Stowe Drive
between Scripps Poway Parkway and Kirkham Road.
• 138,966 square feet of streetscape landscaping located on the north and south sides of
Scripps Poway Parkway between Stowe Drive and Danielson Street.
31,146 square feet of landscaped median and 26,746 square feet of hardscaped median on
Scripps Poway Parkway between Stowe Drive and Danielson Street.
• 36,176 square feet of streetscape landscaping located on the north and south sides of
Scripps Poway Parkway between Danielson Street and 2,000 feet east of Danielson Street.
• 31,146 square feet of landscaped median and 26,746 square feet of hardscaped median on
Scripps Poway Parkway between Danielson Street and 2,000 feet east of Danielson Street.
WWILLDAN
31 of Financial9 April 2, 2019, Item #4.2
Landscape Maintenance District No. 19-1
Engineer's Report
Fiscal Year 2019/2020
> 8,248 square feet of streetscape landscaping located on the west side of Stowe Drive
between Danielson Street and Scripps Poway Parkway
> 29,242 square feet of streetscape landscaping located on the south side of Stowe Drive
between Crosthwaite Circle East and Danielson Street.
> 15,662 square feet of streetscape landscaping located on the north and south sides of
Stowe Drive between Parkway Centre Drive and Crosthwaite Circle East.
> 87,089 square feet of streetscape located on the north and south sides of Stowe Drive
between Crosthwaite Circle West and Parkway Centre Drive.
> 121,596 square feet of streetscape landscaping located on the south side of Stowe Drive
between Mclvers Court and Crosthwaite Circle West.
> 77,176 square feet of streetscape landscaping located on the north and south sides of
Stowe Drive between Community Road and Mclvers Court.
> 2,362 square feet of hardscaped median on Community Road between Danielson Street
and Scripps Poway Parkway.
> 80,993 square feet of streetscape landscaping located on the east and west sides of
Community Road between Stowe Drive and Danielson Street.
> 3,925 square feet of landscaped median and 2,270 square feet of hardscaped median on
Community Road between Stowe Drive and Danielson Street.
> 78,347 square feet of streetscape landscaping located on the north and south sides of
Stowe Drive between Brookprinter Place and Community Road.
> 6,518 square feet of streetscape landscaping located on the north side of Stowe Drive
between Kirkham Road and Brookprinter Place.
> 588,134 square feet of streetscape landscaping located on the east and west sides of
Community Road between Metate Lane and Stowe Drive.
> 25,082 square feet of landscaped median and 1,365 square feet of hardscaped median on
Community Road between Metate Lane and Stowe Drive.
> 186,055 square feet of streetscape landscaping located on the east side of Community
Road from 900 feet north of Metate Lane to Metate Lane.
> 29,161 square feet of streetscape landscaping located on the south side of Metate Lane
from 670 feet west of Community Road to Community Road.
> 648,074 square feet of streetscape landscaping located on the north and south sides of
Stowe Drive between Pomerado Road and lavelli Way.
WWI
32 of 495 April 2, 2019, Item #4.2
Landscape Maintenance District No. 19-1
Engineer's Report
Fiscal Year 2019/2020
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 22531 defines "maintain" or"maintenance" as follows:
"Maintain" or "maintenance" means the furnishing of services and materials for the ordinary and
usual maintenance, operation, and servicing of any improvement, including: (a) Repair, removal, or
replacement of all or any part of any improvement. (b) Providing for the life, growth, health, and
beauty of landscaping, including cultivation, irrigation, trimming, spraying, fertilizing, or treating for
disease or injury. (c) The removal of trimmings, rubbish, debris, and other solid waste. (d) The
cleaning, sandblasting, and painting of walls and other improvements to remove or cover graffiti.
Section 22538 defines "service" or"servicing"as follows:
"Service" or "servicing" means the furnishing of: (a) Electric current or energy, gas, or other
illuminating agent for any public lighting facilities or for the lighting or operation of any other
improvements. (b) Water for the irrigation of any landscaping, the operation of any fountains, or
the maintenance of any other improvements.
The formulas used for calculating assessments 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 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 the
District. 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
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";
WILLDAN
mom Financial Services
33 of 4April 2, 2019, Item #4.2
Landscape Maintenance District Na 19-1
Engineer's Report
Fiscal Year 2019/2020
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 properly located in the district or to the public at large. General enhancement
of property value does not constitute "special benefit."
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 are intended to provide a more pleasant environment to
walk, drive, 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
immediately surrounding commercial 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
improvements may in part be visible to properties outside the District, collectively, if these
improvements are not properly maintained, it is the parcels within the District 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 privately maintained landscape areas, and to some extent 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 and benefits 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 proposed to be
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).
L WILaLDAN
Services
34 of 49 April 2, 2019, Item #4.2
Landscape Maintenance District No. 19-1
Engineer's Report
Fiscal Year 2019/2020
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 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
these improvements (particularly the level of maintenance and servicing) are not required nor
associated with any properties outside the District. 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 to those properties in close proximity to the 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 the District receive from the
improvements.
In the absence of a special funding district, 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 benefit's 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
WILLDAN
35 of
Financial Services
April 2, 2019, Item #4.2
Landscape Maintenance District No. 19-1
Engineer's Report
Fiscal Year 2019/2020
did not exist. However, it is also recognized that with the regular maintenance of the landscape
improvements, and 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
two percent (2%) of the overall landscape maintenance costs. While conservatively we estimate
that the costs associated with these indirect and incidental benefits typically are less than two
percent (2%) of the annual maintenance expenditures for the landscaping improvements, for
budgeting purposes and establishment of the annual assessments, four percent (4%) the
budgeted maintenance expenditures for the landscaping will be deducted from the annual
expenses as a general benefit expense.
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 the City as a whole and therefore, to some extent provide some measure of
indirect general benefit to other properties in the City and the public at large. It is estimated that
the overall arterial landscape improvements in this District (located on Scripps Poway Parkway,
Community Road, and Pomerado Road) represent approximately twenty percent (20%) of the
overall landscaping maintained by the City on its arterial streets and main thoroughfares. While
much of the traffic on these arterials and main thoroughfares within the District, including Stowe
Drive, tend to be regional in nature, largely serving the properties in the immediate area that are
directly accessed by those streets, it is also recognized that Scripps Poway Parkway,
Community Road, and Pomerado Road each extend beyond the District boundaries to areas
outside the City as well as other regions of the City. Travelers to these other areas and
properties will typically utilizing multiple segments of the City's arterial streets with landscaping
improvements which may be funded by various revenue sources including other districts.
Likewise, the owners, business, and customers associated with the parcels within this District
also travel those arterial streets outside the District which have landscaping funded by other
sources.
In reviewing available traffic data posted by the San Diego Association of Governments
("SANDAG"), it is estimated that Scripps Poway Parkway, Community Road, Pomerado Road
and Stowe Drive within the District boundaries account for approximately thirty-eight percent
(38%) of the total Average Daily Vehicular Trips (ADT) associated with the City's arterial street
segments, including, Espola Road, Camino Del Norte/Twin Peaks, Community Road, Ted
Williams Parkway, Pomerado Road, Scripps Poway Parkway, and Stowe Drive, and also
account for only about 23% of the total ADT when the street segments between the City and
Interstate 15 (San Diego Streets) are included in the counts. Further evaluation of the SANDAG
traffic data indicates that Scripps Poway Parkway and Pomerado Road are two of the highest
traveled arterial streets in the City, and together within the boundaries of the District these two
streets, represent approximately twenty-seven percent (27%) of the total City arterial ADT count
(Scripps Poway Parkway - 21% and Pomerado Road — 6%). However, the data also indicates
that only 25% of the total ADT on Pomerado Road is within the District and the ADT counts
along the various segments are fairly consistent with the full length of Pomerado Road. This
consistency in the ADT counts suggest that much of the vehicular traffic on Pomerado Road is
local property generated rather than pass-through traffic. Similarly, on Scripps Poway Parkway,
the ADT count east of Community Road to the City limits diminishes dramatically from the ADT
count west of Community Road to Pomerado Road (a 42% reduction), and the ADT count east
of Community Road represents approximately twenty-three percent (23%) of the ADT on
Scripps Poway Parkway and thirteen percent (13%) of the total ADT within the District.
WWILLDAN
36 of 9
Financial April 2, 2019, Item #4.2
Landscape Maintenance District No. 19-1
Engineer's Report
Fiscal Year 2019/2020
Based on the preceding facts and observations, we have determined that approximately thirteen
percent (13%) of the cost to maintain the arterial landscape improvements within the District
would be considered indirect and incidental benefit (i.e., general benefit) costs and not
assessed to properties in the District. This percentage is based on the combined consideration
of the area being maintained and the overall traffic volume, plus pass-through traffic:
> Approximately twenty percent (20%) of the overall landscaping maintained by the City on its
arterial streets and main thoroughfares is within the District and the arterial streets in the
District represent approximately thirty-eight percent (38%) of the City's total ADT on its
arterial street segments. (20% x 38% = 7.6% of the proportional landscape area and traffic
volume).
Approximately twenty-one percent (21%) of the overall ADT identified for the City's arterial
street segments are associated with Scripps Poway Parkway which passes through the City
• limits on both the east and west sides of the City and it is estimated that twenty-three
percent (23%) of those trips are attributable to pass-through traffic. (21% x 23 % = 4.83%
through traffic).
The combination of the ratio of maintained area to traffic volume and the ratio of through-traffic
to overall traffic volume, (7.60% + 4.83% = 12.43%) provides a reasonable estimate of the
indirect and incidental benefit (i.e., general benefit) associated with the arterial landscape
improvements within the District and are not assessed.
Therefore, in addition to the four percent indirect or incidental general benefit costs identified
previously, the City will contribute an additional thirteen percent (13%) of the annual
maintenance expenditures associated with the arterial landscape improvements.
The quantified baseline general benefit costs and the indirect/incidental general benefit costs
identified above shall be excluded (Le., separated) 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 is approximately $143,235 based on the current District
improvements. As with many maintenance costs, General Benefit Costs may be impacted by
inflation in subsequent fiscal years, and the General Benefit Costs 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 2019/2020 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 the District
improvements for Fiscal Year 2019/2020 are identified in the budget section of this Report (Part
Ill of this Report).
To calculate and identify the proportional special benefits 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."
WILLDAN
37 of 49��M°� April 2, 2019, Item #4.2
Landscape Maintenance District No. 19-1
Engineer's Report
Fiscal Year 2019/2020
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 specific use of the property and characteristics that reflect
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. To proportionately assess the special 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 special benefits
conferred on each parcel from the improvements are apportioned as a function of comparable
property characteristics. The base value and assessment formula utilized in other districts may
be different but is typically established to reflect the improvements and properties that specially
benefit from those improvements utilizing property characteristics that may include, but are 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 special benefit derived
from the various improvements by one acre of a developed non-residential parcel. The acreage
associated with developed non-residential parcels has been selected as the basic value for
calculation of assessments since developed non-residential land use represents approximately
81% of the acreage of the benefiting parcels in the District. Thus, the "benchmark" property (1.0
acres of developed non-residential property) derives one EBU of special 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 EBU5 established for those land use
classifications.
Land Use Classifications
Non-Residential Developed -- This land use is defined as a parcel that has been developed
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, and churches or other non-profit organizations.
As previously noted, one acre of a developed non-residential parcel has been selected as the
basic value for calculation of assessments and is assigned 1.00 EBU per acre or portion
thereof. Therefore, the EBU assigned to each developed non-residential property is established
by multiplying the parcel's applied acreage by 1.0 EBU per acre (e.g., a developed non-
residential parcel of 4.25-acres would be assigned 4.25 EBU, 4.25 acres x 1.0 EBU/acre = 4.25
EBU).
WWI
I8 Of Financial Services
49 April 2, 2019, Item #4.2
Landscape Maintenance District No. 19-1
Engineer's Report
Fiscal Year 2019/2020
Vacant Undeveloped Property — This land use classification includes undeveloped properties
that are identified as parcels with no development but have the potential to be developed.
Although it is recognized that most of the improvements within the District have been
constructed and accepted for maintenance in large part as 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 area of the City 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 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 are related to the use of those properties (people related) and undeveloped properties
have less immediate utilization of those improvements. Therefore, parcels identified as Vacant
Undeveloped Property, up to 20 acres shall be assigned a proportional EBU that is 50% of that
assigned to developed properties, which is 0.50 EBU per acre (50% of the 1.0 EBU per acre
assigned to Developed Non-Residential properties) up to a maximum of 10.00 EBU. Once a
vacant undeveloped property is developed it will be classified as non-residential development.
Exempt Properties -- Within most districts, there are lots or parcels of land 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., are 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 benefits. 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. 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.
WWI LLDAN
39 of 4 ""a�" April 2, 2019, Item #4.2
Landscape Maintenance District No. 19-1
Engineer's Report
Fiscal Year 2019/2020
At the time this Report was prepared, no parcels within the District are designated as Special
Case Parcels. However, this Special Case designation may be applicable to one or more
parcels in subsequent fiscal years due to parcel changes. property development, and/or
annexation of territory into the District. How the proportional special benefit and assessment for
each Special Case parcel will depend on the reason for the parcel being designated as a
Special Case.
Equivalent Benefit Unit Summary
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 Equivalent Benefit Unit Calculation
Non-Residential Developed 1.00 EBU per Acre
Vacant Undeveloped 0 50 EBU per Acre (Maximum 20 Acres and 10.0 EBU)
Exempt 0.00 EBU per Acre
Special Case Varied EBU per Parcel
WWILLDAN
F ancal Services
40 of 49 April 2, 2019, Item #4.2
Landscape Maintenance District No. 19-1
Engineer's Report
Fiscal Year 2019/2020
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".
WILD�A�N
41 of Financial April 2, 2019, Item #4.2
Landscape Maintenance District No. 19-1
Engineer's Report
Fiscal Year 2019/2020
District Budget and Assessments
The budget and assessment rates outlined on the following page 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 in Part I of this Report.
The budget provided herein establishes the initial Maximum Assessment per EBU (Maximum
Assessment Rate) for Fiscal Year 2019/2020 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 budget 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 2019/2020 is identified in the budget 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 2019/2020.
WWILLDAN
42 of 4J CE xOT' es
April 2, 2019, Item #4.2
Landscape Maintenance District No. 19-1
Engineer's Report
Fiscal Year 2019/2020
Fiscal Year 2019/2020 Assessment and Initial Maximum Assessment Budget
LMD No. 19-1
BUDGET ITEMS
Fiscal Year 2019/2020
ANNUAL OPERATION&MAINTENANCE EXPENSES
Landscape Maintenance $ 344,034
Tree Maintenance 61.430
Landscape Irrigation(Water.Electricrty,Maintenance&Repair) 310.294
TOTAL ANNUAL OPERATION&MAINTENANCE EXPENSES $ 715,758
REHABILITATION/RENOVATION FUNDING&CAPITAL EXPENDITURES
Landscape Improvement Rehabilitation/Renovation Funding -
Planned Capital Expenditures(For Current Fiscal Year) $ -
TOTAL REHABILITATION/RENOVATION FUNDING&CAPITAL EXPENDITU $ -
INCIDENTAL EXPENSES
Operational Reserves(Collection) $Annual Administration Expenses 164,290
TOTAL INCIDENTAL EXPENSES $ 164,290
TOTAL ANNUAL EXPENSES $ 880.048
GENERAL BENEFIT EXPENSES $ (143,235)
TOTAL SPECIAL BENEFIT EXPENSES $ 736,813
FUNDING ADJUSTMENTS
TOTAL FUNDING ADJUSTMENTS/CONTRIBUTIONS $ -
BALANCE TO LEVY $ 736,813
DISTRICT STATISTICS
Total Parcels 360
Assessed Parcels 326
Equivalent Benefit Units (EBUI 877.94
Assessment Per EBU"' $839.2600
Balloted Maximum Assessment Rate Per EBU $840.00
Balloted Amount $ 737,466.66
FUND BALANCE
Estimated Beginning Fund Balance S 545,405
Operational Reserve&Rehabilitation Funding Collected
Estimated Ending Fund Balance $ 545.405
(1) The"Assessment Per EBL1 shown above represents the proposed assessment rate to be applied for the levy and
collection of assessments for Fiscal Year 2019/2020.
WWI LLDAN
F anc,al Services
43 of §a
April 2, 2019, Item #4.2
Landscape Maintenance District No. 19-1
Engineer's Report
Fiscal Year 2019/2020
Assessment Range Formula
Any new or increased assessment requires certain noticing, meeting, and hearing 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." Under the Omnibus Act, an
assessment is also not deemed to be increased "in the case in which the actual payments from
a person or property are higher than would have resulted when the agency approved the . . .
assessment . . . , if those higher payments are attributable to events other than an increased
rate or revised methodology, such as a change in the density, intensity, or nature of the use of
land.
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 rate established herein for fiscal year 2019/2020), 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 2020/2021 and each fiscal year thereafter, the maximum
assessment rate established for the improvements in the previous fiscal year 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 CR, using the difference
over a 12-month period between the current year and 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 rate allowed, but the adjustment applied to the maximum
assessment rate shall not exceed 3%. If the percentage change in the CPI-U is negative, the
maximum assessment rate 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 rate
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 rate (adjusted maximum
assessment rate) will provide for an appropriate and reasonable increase to the maximum
assessment rate 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
WWILDAN
44 of Financial9April 2, 2019, Item #4.2
Landscape Maintenance District No. 19-1
Engineer's Report
Fiscal Year 2019/2020
individual property, the City must comply with the provisions of the California Constitution Article
XIIID section 4, that require 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.
WWILLDAN
F ancial Service
45 of 49 April 2, 2019, Item #4.2
Landscape Maintenance District No. 19-1
Engineer's Report
Fiscal Year 2019/2020
Part IV - District Diagram
The District Diagram provided on the following page provides a visual depiction of the
boundaries of Landscape Maintenance District No. 19-1 for Fiscal Year 2019/2020. 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. 19-1 including all subsequent subdivisions, lot-line adjustments, or parcel changes therein.
, WILLDMN
46 of 49 April 2, 2019, Item #4.2
.- to
o N
a O —
N N i
O X ie, i
Z 0 p Ony,oav
'c 4 Y =
F
a N O
cu LL � P.� _ _ - g 111111:
C (;)
N _
C l G r
1:1)
w J 1s5
n.a, num `� ,'i.4r3� i 1
m a ,(.WO 1
a
(a AeM�epov I •_ •
U _
d
C ,leo^5 viol`
(0
r 3 , I
----I _ r.- � !�-, t
•
1
cl. A •tCj‹, ,,— 1 i
4o.4.
a — ,---' .--I �, i
5
e ' __-1I_ - —n aaun446•a„.pd ,(!+aMn7Y,e1 \�
. V is aNd I
4,'t. M4Id
- __..
h
yd's r '`;an In,alNa�,.�, i
> as � b ser S I i
iii 2
k1 u°,.,C w pw sN Remsa, '.] \ E
9 ! r M 1
> a
y i (� _ t ala
V� i r i L
Ma
C
co .! G 11 O.
a l Q
Jr: .
aele., N
J
.yj 1av^ ,Q ieah N�, /�
1 ase ls6amb '98 ‘.....
S aN C,y Aee4D a ; Q
7S We.oLY pi$n ( U 7- ,...-* i, Il rJL meaWe7 S h / ch
N I rj 4QO 9 �i
i Z
a .:imania,.5, sY o• i O
I
ucsapa 00- .� .6 pa !
E
/ ca M5�lsyy f 4! `_ l Z m
Cr) b �
CU a `� IV
m
o
,M+ a n® Q G J_c
.� to
MA.% aS a 1 d'6 �Le LL
—41 i-
a rt
o
47 of 49 April 2, 2019, Item #4.2
Landscape Maintenance District No. 19-1
Engineer's Report
Fiscal Year 2019/2020
Part V - Assessment Roll
Due to the number of parcels within Landscape Maintenance District No. 19-1, 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 2019/2020 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.
WWILLDAN
48 of inandal Services
April 2, 2019, Item #4.2
io2 m
1 u
i E $ ' g g i
% b U Ir o m co C
N. m m m m E E a m m°
•
;T ''°
l 4• a • ww d' 1;
11
Wes:
I
C'.0A la Filo,
e
1 —Y
i `i
l 1
1
• a' ,tel.A1 ,•, ., I
U/00011/3 yl r.y
- - __
ft d Kt with 1
gldl4 _
* '•: '
-7pe-4 .`."' 4-- - KI wN'1'1110•11,- 1
. . -\,,..,416..._ilk [11)
iL ,± ''' °'''''...
man*Ala di 1
1
1
p 3 g /
x !
I 1
^.t,a�uysH 1
_
•
.0 1pa _ i
t 1
�`f'?Z
i
i Co
2
, ..... : ci. a)
\Z Mii s t )1144 \1/4.\\\�
t11s1Mv --1�
all 7''''s" --- T. --, ,
J RY
II i
----'""- -#9.''' ' ' \ __. f 41
•
141111111/Allm.'" It\. -.., i
yt --- -•-•-•-•-.-._.. _i_•• ---- ---- - C.) a
49 of 49 ATTACHMENT D April 2,2019,item#4.2