Item 1.8 - LMD 86-1 for FY 2017/2018 and Set Date for Public HearingG,� { OF PO
C�T1' IN THE 00
City of Poway
COUNCIL AGENDA REPORT
APPROVED
APPROVED AS AMENDED
(SEE MINUTES)
DENIED
REMOVED
CONTINUED
Resolution No. 01 t0
DATE: May 16, 2017
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 fo
Maintenance Operations
eheidemann@poway.org
SUBJECT: Engineer's Report and Resolution Declaring the Intention to
Levy and Collect Assessments Within Poway Landscape
Maintenance District 86-1 for Fiscal Year 2017/2018 and Set
Date for Public Hearing
Summary:
The California Landscape and Lighting Act of 1972 (ACT), and its amendments
(Proposition 218 and SB 919) allow for the collection of assessments from parcels
annexed into Landscape Maintenance District (LIVID) 86-1 for the purpose of
maintaining the District's public landscape improvements. In order to collect
assessments, Chapter 3 of the ACT requires a Resolution (Attachment A) declaring the
intention to levy and collect assessments and an Engineer's Report (Attachment B).
Fiscal Year 2017/2018 assessment rates shall remain unchanged from the Fiscal Year
2016/2017 rates. Zone B contains one non-residential parcel that contributes in -lieu
assessments by providing equivalent maintenance services for the LMD improvements
within the adjacent public right-of-ways.
Recommended Action:
It is recommended that the City Council: 1) adopt the attached Resolution declaring the
intention to levy and collect assessments within Poway Landscape Maintenance District
86-1 for Fiscal Year 2017/2018; 2) approve the corresponding Engineer's Report
outlining the assessments for Fiscal Year 2017/2018; 3) direct the City Clerk to publish
the approved Resolution one week following Council approval; and 4) set the public
hearing for June 20, 2017.
Discussion:
Landscape Maintenance District 86-1 was formed on June 12, 1986, to maintain
landscape improvements required as conditions of approval for the various subdivisions
1 of 23 May 16, 2017, Item # 1.8
Engineer's Report; Intention to Collect within LMD 86-1 for FYI 7/18: Set Public Hearing
May 16, 2017
Page 2
included within the District boundaries. Each subdivision and/or development listed
below was required to annex into the District as a condition of property development
either through the final map process or by Council Resolution.
Based on the improvements that provide special benefits to parcels within the District,
for Fiscal Year 2017/2018 specific developments within the District are being
established as separate designated Zones. The following provides a listing of the
developments and associated properties in each proposed District Zone for Fiscal Year
2017/2018:
District 86-1 Zone A includes the following residential developments:
TRACT PROJECT NAME
TTMs 4090R,4091R,4092R,4093R
TTM
3545
TTM
4158
TTM
84-08
TTM
89-13
TTM
89-13R
TTM
89-13R
TTM
89-13R
TTM
98-02
TTM
99-03
MDRA
98-71
MDRA
01-38
MDRA
05-59
TTM
00-02
TTM
02-01
PM 15384 (par 1. 2, 3 and 4)
MAP 15725
ROS 4063
Bridlewood
Piedmont Park
Stone Canyon Ranch
The Grove
Old Coach Collection
The Heritage, Phase I, Unit I
The Heritage, Phase I, Unit III
The Heritage, Phase I, Unit IV
North Point
Vision Homes
Kennedy Family Trust
Wells Trust
Garczynski
Malone
BBA Partners
Custom Homes
Milpitas -Fleming Associates
Seaman Gregg
District 86-1 Zone B includes the following non-residential development:
TRACT PROJECT NAME
TPM 90-06 LDS Poway Chapel.
District 86-1 Zone C includes the following residential development:
TRACT PROJECT NAME
TTM 87-05
Serenata
2 of 23 May 16, 2017, Item # 1.8
Engineer's Report; Intention to Collect within LIVID 86-1 for FY17/18; Set Public Hearing
May 16, 2017
Page 3
District 86-1 Zone D includes the following residential development:
TTM 86-01 Huntington Gate, I and II
District 86-1 Zone E includes the following residential development:
TRACT PROJECT NAME
TTM 88-15 Green Valley Estates
Section 22624 of the Streets and Highways Code requires the City Council to approve
an engineering report and adopt a Resolution of intention prior to establishing a budget
each year. The Engineer's Report (Attachment B) outlines the proposed Fiscal Year
2017/2018 budget and resulting assessments.
The District currently has no approved escalation factor for increasing the maximum
assessment rates. Currently, LIVID 86-1A, C. and D do not have sufficient funding to
continue at maintenance service level A. Therefore, landscape maintenance services
are being reduced to service level B.
Fiscal Year 2017/2018 assessments are proposed to remain at the Fiscal Year
2016/2017 rate of $243.04 per year (or $20.25 per month) per benefit unit. There are
currently 954 residential parcels being assessed within LIVID 86-1, Zones A, C and D.
On September 8, 1992, the City Council approved an agreement whereby the LDS
Poway Chapel is to maintain the LIVID improvements adjacent to, and constructed by
the church. Zone B will have no assessment levied, as the Church of Latter -Day Saints
has agreed to maintain the right-of-ways bordering their property for perpetuity.
Green Valley Estates Homeowners Association currently has an agreement in place
with the City to maintain the right-of-ways bordering the development along Lake Poway
Road. As such, the properties in this zone will not be levied an assessment for Fiscal
Year 2017/2018.
No new parcels were added to the District during Fiscal Year 2016/2017. Under
Assessment Law (Article XIII D, Section 20)), those properties not receiving special
benefit are not included on the LIVID 86-1 assessment roll.
For Fiscal year 2017/2018, the City and Assessment Engineer have determined that
specific parcels do not receive special benefit from the improvements to be maintained
with the District. Therefore, the City is proposing to detach thirty-seven parcels from the
District in Fiscal Year 2017/2018.
3 of 23 May 16, 2017, Item # 1.8
Engineer's Report; Intention to Collect within LMD 86-1 for FY17/18; Set Public Hearing
May 16, 2017
Page 4
Proposition 218, which was passed by the California voters on November 5, 1996,
expands the requirements for public notification and imposes the requirement of District
balloting. Beginning July 1, 1997, all existing, new, or increased assessments shall
comply with Article XIII D as added to the California Constitution. All parcels currently
assessed were annexed into the District by owner consent at the time of development,
making them exempt from the procedures and approval process set forth in Section 4 of
this Article. However, this does not preclude any assessments that would be increased
in future years. Subsequent increases in such assessments shall be subject to the
procedures and approval process set forth in Section 4 of Article Xlll D.
As required under Assessment Law (Landscape and Lighting Act of 1972 and its
amendments), an engineer's report and assessment recommendations must be
presented for City Council consideration and public comment on an annual basis. This
Report (Attachment B) has been found technically correct as presented.
Environmental Review:
This action is not subject to California Environmental Quality Act review.
Fiscal Impact:
Revenues collected at $243.04 per benefit unit for Zones A, C, and D for an estimated
total of $231,860.16 will be used for the District's maintenance costs during Fiscal Year
2017/2018. A General Fund contribution of $45,413.90 for Zones A, C, and D will be
made based upon average square footage maintenance costs for the landscaped
medians and right-of-ways that provide general benefit to the City.
Public Notification:
None.
Attachments:
A. Resolution Declaring the Intention to Levy and Collect Assessments Within
Poway Landscape Maintenance District 86-1 for Fiscal Year 2017/2018
B. 2017/2018 Engineer's Annual Levy Report
Reviewed/Approved By: Reviewed By:
Wendy Kaserman
Assistant City Manager
Morgan Foley
City Attorney
Approve
A��
Tina M. White
City Manager
4 of 23 May 16, 2017, Item # 1.8
RESOLUTION NO. 17-
A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF POWAY, CALIFORNIA,
DECLARING THE INTENTION TO LEVY AND COLLECT
ASSESSMENTS WITHIN POWAY LANDSCAPE MAINTENANCE
DISTRICT 86-1 AND TO DETACH CERTAIN TERRITORY FROM THE DISTRICT FOR
FISCAL YEAR 2017/2018 PURSUANT TO THE PROVISIONS OF THE
LANDSCAPING AND LIGHTING ACT OF 1972
WHEREAS, the City Council of the City of Poway desires to levy and collect
assessments within Poway Landscape Maintenance District 86-1 for the purpose of
maintaining, servicing. and operating public landscape facilities located within the territory
comprised of said district as shown in Exhibit A of the Engineer's Report that is on file in
the City Clerks Office, pursuant to the Landscape and Lighting Act of 1972, and attached
hereto. and
WHEREAS, Section 22609 of the Landscaping and Lighting Act of 1972 authorizes
the detachment of territory within Poway Landscape Maintenance District 86-1, and
WHEREAS, assessments will not increase from the Fiscal Year 2016/2017
assessment rate of $243.04 per benefit unit for Zones A. C, D and E, and
WHEREAS, under Article XIII D. Section 4 of the California Constitution, a City
general benefit contribution has been calculated as the average General Fund
expenditure on a per square foot basis for the maintenance of landscaped medians and
right-of-ways. This general benefit contribution for Zones A, C and D has been calculated
to be $45.413.90, and
WHEREAS, under Article XIII D, Section 5(b) of Proposition 218 (adopted by
general vote on November 5, 1996), the collection of Fiscal Year 2017/2018 assessments
is exempt from the procedures and approval process set forth in Section 4 of Article XIII
D, in that the assessment was imposed pursuant to a petition signed by the persons
owning all of the parcels subject to the assessment at the time the assessment was
initially imposed: and
WHEREAS, the public interest and convenience require the maintenance, service,
and operation of public landscaping and sound walls within said territory.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Poway
as follows
Section 1 The foregoing recitals are true and correct and the City Council so
finds and determines.
Section 2 Proposed assessments are as detailed in the Engineer's Report for
Poway Landscape Maintenance District No. 86-1 for Fiscal Year 2017/2018.
5 of 23 Attachment A May 16, 2017, Item # 1.8
Section 3: The proposed territory to be detached is detailed in the Engineer's
Report for Poway Landscape Maintenance District No. 86-1 for Fiscal Year 2017/2018.
Section 4: The detachment of this territory will have no fiscal impact on the
assessments for the remaining zones and parcel within Poway Landscape Maintenance
District No. 86-1 for Fiscal Year 2017/2018.
Section 5: Pursuant to the Streets and Highways Code, a public hearing will be
held on June 20, 2017, by the City Council to consider the levying and collection of the
proposed assessments.
Section 6: The City Clerk shall cause this Resolution to be published in the
Poway News Chieftain, a newspaper of general circulation in the City of Poway.
PASSED, ADOPTED AND APPROVED by the City Council of the City of Poway
at a regular meeting this 161" day of May, 2017.
Steve Vaus, Mayor
ATTEST:
Nancy Neufeld, CMC, City Clerk
6 of 23 May 16, 2017, Item # 1.8
STATE OF CALIFORNIA )
) SS
COUNTY OF SAN DIEGO )
I, Nancy Neufeld, CMC, City Clerk, of the City of Poway, do hereby certify under penalty
of perjury that the foregoing Resolution No. 17- was duly adopted by the City Council at
a meeting of said City Council held on the 16th day of May, 2017, and that it was so
adopted by the following vote:
AYES:
NOES:
ABSENT:
DISQUALIFIED:
Nancy Neufeld, CMC, City Clerk
City of Poway
7 of 23 May 16, 2017, Item # 1.8
City of Poway
Landscape Maintenance
District 86-1
2017/2018 ENGINEER'S ANNUAL LEVY REPORT
INTENT MEETING: MAY 16, 2017
PUBLIC HEARING: JUNE 20, 2017
�WILLDAN
Financial Services
Attachment B May 16, 2017. Item # 1.8
O WILLDAN
AFFIDAVIT FOR THE ENGINEER'S ANNUAL LEVY REPORT
Landscape Maintenance District 86-1
City of Poway
San Diego County, State of California
This Report describes the District and services therein including the improvements,
budgets, parcels and assessments to be levied for Fiscal Year 2017/2018, as they existed
at the time of the passage of the Resolution of Intention. Reference is hereby made to the
San Diego County Assessor's maps for a detailed description of the lines and dimensions
of parcels within the District. The undersigned respectfully submits the enclosed Report
as directed by the City Council.
Dated this Z day of 17.
Willdan Financial Services
Assessment Engineer
On Behalf of the City of Poway
By: _
Beatrice Medina
Project Manager, District Administration Services
-
By.
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Richard Kopecky orZP F0 -X,
R. C. E. # 16742 2 ¢ C 1674cl,2 {
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9 of 23 May 16, 2017, Item # 1.8
TABLE OF CONTENTS
1. OVERVIEW .........................................................................................................1
A. INTRODUCTION.................................................................................................1
B. COMPLIANCE WITH CURRENT LEGISLATION..............................................1
C. IMPROVEMENTS AUTHORIZED BY THE 1972 ACT.......................................2
Il. DESCRIPTION OF THE DISTRICT....................................................................3
A. BOUNDARIES OF THE DISTRICT....................................................................3
B. DISTRICT ZONES..............................................................................................3
C. DESCRIPTION OF THE DISTRICT IMPROVEMENTS......................................5
D. PROPERTIES BENEFITING FROM IMPROVEMENTS.....................................5
Ill. METHOD OF APPORTIONMENT......................................................................6
A. GENERAL..........................................................................................................6
B. BENEFIT ANALYSIS..........................................................................................6
C. ASSESSMENT METHODOLOGY......................................................................8
D. MAXIMUM ASSESSMENT RATE......................................................................9
IV. DISTRICT BUDGETS.......................................................................................10
A. DESCRIPTION OF BUDGET ITEMS................................................................10
B. PROPOSED ZONE BUDGETS FISCAL YEAR 2017/2018 ..........................11
V. APPENDIX A -DISTRICT ASSESSMENT DIAGRAM.....................................12
VI. APPENDIX B - 201712018 ASSESSMENT ROLL...........................................13
10 of 23 May 16, 2017, Item # 1.8
NWILLDAN
Financial Services
/. OVERVIEW
A. INTRODUCTION
The City of Poway ("City") annually levies and collects special assessments in order to maintain
the improvements within the Landscape Maintenance District 86-1 ("District") formed June 12,
1986, pursuant to the City of Poway Resolution No. 00-034 (Policies for Landscape Maintenance
Districts) and the Landscape and Lighting Act of 1972, Part 2 of Division 15 of the California
Streets and Highways Code ("1972 Act"), in compliance with California Constitution Article XIIID
("Article XIIID"). The 1972 Act and Article XIIID are collectively referred to herein as "Assessment
Law".
This Engineer's Annual Levy Report ("Report") has been prepared pursuant to Chapter 1, Article
4 and Chapter 3 of the 1972 Act, and presented to the City Council for their consideration and
approval of the improvements and services to be provided within District. This Report describes
the District, any proposed changes to the District including substantial changes to the District
improvements, the parcels to be assessed, and the proposed assessments related thereto to
fund the costs and expenses required to service and maintain designated improvements within
the District that provide special benefits to those parcels for Fiscal Year 2017/2018. Annually,
the City establishes the District's assessments based on the special benefit received by the
properties in the District and the associated net special benefit expenses resulting from an
estimate of the costs to maintain, operate and service the improvements in conjunction with
available revenues including fund balances, general benefit contributions, additional City
contributions, and current assessment limits. Each parcel is assessed proportionately for only
those improvements provided and for which the parcel receives benefit based on an established
method of apportionment.
The word "parcel," for the purposes of this Report, refers to an individual property assigned its
own Assessor's Parcel Number by the County of San Diego ("County") Assessor's Office. The
County Auditor/Controller uses Assessor's Parcel Numbers and speck Fund Numbers, to
identify on the tax roll, properties assessed for special district benefit assessments.
Following consideration of public comments and written protests at a noticed public hearing, and
review of the Report, the City Council may order amendments to the Report or confirm the Report
as submitted. Following final approval of the Report, and confirmation of the assessments, the
Council may order the levy and collection of assessments for Fiscal Year 2017/2018 pursuant to
the 1972 Act. In such case, the assessment information will be submitted to the County
Auditor/Controller, and included on the property tax roll for each benefiting parcel for Fiscal Year
2017/2018.
B. COMPLIANCE WITH CURRENT LEGISLATION
Pursuant to the 1972 Act, the City Council annually conducts a public hearing to accept public
comments and testimony, and to approve the annual assessments to be levied on the County
tax roll for the fiscal year. All assessments contained in this Report and to be approved by the
City Council have been prepared in accordance with the 1972 Act and are in compliance with
the provisions of Article XIIID of the Constitution of the State of California ("Proposition 218").
The City has reviewed the provisions of Article XIIID of Proposition 218 and has made the
following findings and determinations:
201712018 City of Poway landscape Maintenance Distnct 86-1 P-a;v ,
11 of 23 May 16, 2017, Item # 1.8
WWILLDAN
Financial Services
Pursuant to Article XIIID. Section 5, certain existing assessments are exempt from the
procedures and approval process set forth in Article XIIID. Section 4. and property owner
balloting for the assessments is not required until such time that the assessments are increased.
Since the District assessments were imposed pursuant to a petition signed by the persons
owning all of the parcels subject to the assessments at the time the assessments were initially
imposed. Article XIIID Section 5 (b) exempts the existing assessment amounts (approved original
assessment rates including any applicable annual escalation factor) from the procedural
requirements of Article XIIID, Section 4.
The provisions of Article XIIID do not alter the non -conflicting provisions of the 1972 Act. As such.
the method of apportionment described in this Report utilizes commonly accepted assessment
engineering practices consistent with the 1972 Act and the provisions of Article XIIID The
proposed assessments for the current fiscal year are less than or equal to the adjusted maximum
assessment rate previously approved and adopted for the District. The application of this
adjusted maximum assessment rate for the various land uses within the District is described in
more detail in Section III D of this Report. Any proposed assessment that exceeds the adjusted
maximum assessment rate is considered an increased assessment Pursuant to the provisions
of Article XIIID. all new or increased assessments (the incremental increase) are subject to both
the substantive and procedural requirements of Article XIIID Section 4
C. IMPROVEMENTS AUTHORIZED BY THE 1972 ACT
As applicable or may be applicable to this proposed District. the 1972 Act defines improvements
to mean one or any combination of the following:
• The installation or planting of landscaping
• The installation or construction of statuary, fountains, and other ornamental structures
and facilities.
• The installation or construction of public lighting facilities.
• The installation or construction of any facilities which are appurtenant to any of the
foregoing or which are necessary or convenient for the maintenance or servicing
thereof, including, but not limited to, grading, clearing, removal of debris. the
installation or construction of curbs, gutters, walls, sidewalks, or paving. or water,
irrigation, drainage, or electrical facilities.
• The maintenance or servicing, or both, of any of the foregoing.
• The acquisition of any existing improvement otherwise authorized pursuant to this
section
Incidental expenses associated with the improvements including, but not limited to:
• The cost of preparation of the Report. including plans. specifications, estimates.
diagram. and assessment,
• The costs of printing, advertising, and the publishing, posting and mailing of notices,
• Compensation payable to the County for collection of assessments:
• Compensation of any engineer or attorney employed to render services,
• Any other expenses incidental to the construction, installation, or maintenance and
servicing of the improvements:
• Any expenses incidental to the issuance of bonds or notes pursuant to Section
22662.5, and.
2017/2018 City of Poway Landscape Maintenance District 86-1 gage 2 of 13
12 of 23 May 16, 2017, Item # 1.8
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Financial Services
• Costs associated with any elections held for the approval of a new or increased
assessment.
The 1972 Act defines "Maintain" or "maintenance" to mean furnishing of services and materials
for the ordinary and usual maintenance, operation, and servicing of any improvement. including:
• Repair, removal, or replacement of all or any part of any improvement.
• Providing for the life, growth, health, and beauty of landscaping, including cultivation,
irrigation, trimming, spraying, fertilizing. or treating for disease or injury.
• The removal of trimmings rubbish, debris, and other solid waste.
• The cleaning. sandblasting. and painting of walls and other improvements to remove
or cover graffiti.
A DESCRIPTION OF THE DISTRICT
A. BOUNDARIES OF THE DISTRICT
The District Boundary Map and Assessment Diagram, which are incorporated herein by reference
and made a part of this Engineer's Report, are on file with the Special Districts Office of the Public
Works Department of the City of Poway and are available for public inspection during normal
business hours.
B. District Zones
Pursuant to the provisions of the 1972 Act. Zones have been established within the District on the
basis of the location, extent and types of improvements or similarities in the types of improvements
being maintained through the District assessments as well as the particular and distinct benefits
the various developments and properties derive from those improvements based on proximity to
those specific improvements and the nexus between the development of the properties that
required or facilitated the installation of those improvements. The following provides a listing of
the developments and associated properties in each of the District Zones
2017/2018 City of Poway Landscape Maintenance District 86-1 Paa�
13 of 23 May 16, 2017, Item # 1.8
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District 86-1 Zone A is comprised of the residential parcels within the following developments
TTMs 4090R. 4091 R, 4092R, 4093R
TTM 3545
TTM 4158
TTM 84-08
TTM 89-13
TTM 89-13R
TTM 89-13R
TTM 89-13R
TTM 98-02
TTM 99-03
MDRA 98-71
MDRA 01-38
MDRA 05-59
TTM 00-02
TTM 02-01
PM15384 (Par 1, 2,3 and 4)
MAP 15725
ROS 4063
Bridlewood
Piedmont Park
Stone Canyon Ranch
The Grove
Old Coach Collection
The Heritage, Phase I, Unit I
The Heritage, Phase I, Unit III
The Heritage, Phase I, Unit IV
North Point
Vision Homes
Kennedy Family Trust
Wells Trust
Garczynski
Malone
BBA Partners
Custom Homes
Milpitas -Fleming Associates
Seaman Gregg
District 86-1 Zone B is comprised of the residential parcels within the following developments
TPM 90-06
LDS Poway Chapel
District 86-1 Zone C is comprised of the residential parcels within the following developments.
TTM 86-01
MDRA 04-02
Huntington Gate. I and II
Sedehi/Fard
District 86-1 Zone D is comprised of the residential parcels within the following developments
TTM 87-05
Serenata
District 86-1 Zone E is comprised of the residential parcels within the following developments.
TTM 88-15
Green Valley Estates
2017/2018 City of Poway Landscape Maintenance Distnct 86-1 Page 4 of 13
14 of 23 May 16, 2017, Item # 1.8
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C. DESCRIPTION OF THE DISTRICT IMPROVEMENTS
The improvements to be maintained by the District are defined as landscape improvements within
the right-of-ways and open space areas associated with the development of the subdivisions and
parcels within the District and are considered to be improvements that were either installed in
direct connection with the development of those properties or were installed for the benefit of
those properties as a result of property development or potential development of those properties
and were considered necessary for the development of those properties to their full and best use.
These improvement areas within the District may include, but are not limited to landscaping
adjacent to the developments along portions of Espola Road, Titan Way, Painted Desert Road,
Woodland Parkway. Summer Sage Road, Lake Poway Road, Riparian Road. Sunset Drive, Del
Pomente Road and Twin Peaks Roads. Some of the District improvement areas are currently
maintained by the adjacent property owner or property owners through a Homeowner's
Association. In such cases, those property owners are not assessed for the maintenance of those
improvements.
Walls and fences adjacent to private property are to be maintained by the adjacent property
owners. The District/City, prior to commencement of work, shall approve repairs or reconstruction
of any walls or fences adjacent to the District landscape areas. Should the property owners desire
to include major repairs or reconstruction within the District's responsibilities, the property owners
are required to submit a petition to initiate the balloting process set forth in Article XIIID, Section
4.
Landscape maintenance performance standards and specifications have been developed by the
City to assure quality maintenance of landscape assessment district properties A recent
evaluation of the level of quality has been conducted, and the current maintenance levels meet
the City's landscape maintenance standards.
D. PROPERTIES BENEFITING FROM IMPROVEMENTS
The properties determined to receive benefit are those lots or parcels that. as a result of
development or redevelopment, finance, construct, install, and/or establish landscape
improvements within public right-of-ways or public easements (permanent public improvement)
or adjoining lots or parcels that, as a result of development or redevelopment. receive access or
are immediately adjacent to lots or parcels which contain landscape improvements maintained by
a landscape maintenance district
Special benefit, as defined in the "Landscape and Lighting Act of 1972". applicable provisions of
"Proposition 218", and provisions of the "Proposition 218 Omnibus Implementation Act"
("Assessment Law') and in this Report. shall be assessed to those properties determined to
receive special benefit from the District's improvements.
A listing of the parcels receiving special benefit from the District improvements and which are
proposed to be assessed for Fiscal Year 2017/2018 is outlined in Appendix B of this Report.
For Fiscal Year 2017/2018 the City and Assessment Engineer have determined that specific
parcels do not receive special benefit from the improvements to be maintained within the District
for Fiscal Year 2017/2018. Therefore, pursuant to Chapter 2 Article 2 Section 22609 of the Act.
the City is proposing to detach the following parcels from the District commencing in Fiscal Year
2017/2018:
2017/2018 City of Poway Landscape Maintenance District 86-1 Page 5 of 13
15 of 23 May 16, 2017, Item # 1.8
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Book 273, Page 820, Parcels. 53 and 54
Book 275. Page 260. Parcels 30 and 41.
Book 275. Page 800, Parcels 10. 12. and 15;
Book 277. Page 170, Parcels 14 through 18,
Book 314, Page 033. Parcels 01 through 15;
Book 314, Page 840. Parcels 01, 02, 03. 04, 05, 06, 09. 10. 17, and 18
ll/. METHOD OF APPORTIONMENT
A. GENERAL
The 1972 Act permits the establishment of assessment districts by agencies for the purpose of
providing certain public improvements that include the construction, maintenance and servicing
of public lights, landscaping and appurtenant facilities The 1972 Act further requires that the
cost of these improvements be levied according to benefit rather than assessed value.
The net amount to be assessed upon lands within an assessment district may be
apportioned by any formula or method which fairly distributes the net amount among all
assessable lots or parcels in proportion to the estimated benefits to be received by each
such lot or parcel from the improvements.
The formula used for calculating assessments in this District therefore reflects the composition
of the parcels, and the improvements and services provided, to fairly apportion the costs based
on benefit to each parcel.
In addition. Article XIIID requires that a parcels assessment may not exceed the reasonable cost
of the proportional special benefit conferred on that parcel. Article XIIID provides that only
special benefits are assessable and the City must separate the general benefits from the special
benefits A special benefit is a particular and distinct benefit over and above general benefits
conferred on the public at large. including real property within the district. The general
enhancement of property value does not constitute a special benefit.
B. BENEFIT ANALYSIS
Each of the improvements. the associated costs and assessments within the District has been
reviewed, identified and allocated based on the special benefit parcels receive from such
improvements pursuant to the provisions of Article XIIID and the 1972 Act. All improvements
associated with this District have been identified as necessary, required and/or desired for the
orderly development of the properties within the District to their full potential, consistent with the
proposed development plans. As such. these improvements would be necessary and required
of individual property owners for the development of such properties, and the ongoing operation,
servicing and maintenance of these improvements would be the financial obligation of those
properties Therefore, the improvements and the annual costs of maintenance and operation of
the improvements are of special benefit to the properties.
All the lots or parcels are established at the same time once the conditions regarding the
improvements and the continued maintenance are met. As a result, each lot or parcel within the
District receives a special and distinct benefit from the improvements and to the same degree.
2017/2018 City of Poway Landscape Maintenance District 86-1 Page 6 of 13
16 of 23 May 16, 2017, Item # 1.8
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Over time, the improvements continue to confer a particular and distinct special benefit upon the
lots or parcels within the District because of the nature of the improvements. The proper
maintenance of the improvements and appurtenant facilities reduces property related crimes.
especially vandalism, against properties in the District. All of the above mentioned factors also
contribute to a specific benefit to each of the parcels within the District
The method of apportionment (method of assessment) is based on the premise that each
assessed parcel within the District receives benefit from the improvements. However, each
individual improvement element has its own distinct benefits both specific and general. The
special benefits associated with the improvements within the District are as follows:
Special Benefit
The special benefits associated with the landscaping improvements in the District are
specifically:
• Enhanced desirability of properties through association with the improvements:
• Improved aesthetic appeal of properties providing a positive representation of the
area.
• Enhanced adaptation of the urban environment within the natural environment from
adequate green space, open space areas and landscaping:
• Environmental enhancement through improved erosion resistance, dust and debris
control, and fire prevention,
• Increased sense of pride in ownership of property within the District resulting from well-
maintained improvements associated with the properties,
• Reduced criminal activity and property -related crimes (especially vandalism) against
properties in the District through well-maintained surroundings and amenities including
abatement of graffiti. and,
• Enhanced environmental quality of the parcels by moderating temperatures, providing
oxygenation and attenuating noise
General Benefit
Assessment Law mandates that the City assess for special benefit only, and the City shall
separate general benefit from special benefit General benefit is defined as services
provided to the public -at -large. Special benefit is defined as services provided at a level
greater than the services provided to the public -at -large
The City's general benefit to the public -at -large is determined as the average expenditure
from the General Fund for the maintenance of landscaped medians and right-of-ways.
calculated on a per square foot basis. The City shall make a general benefit contribution to
a district based on the City's average rate of expenditure from the General Fund for the
various types of improvements applied to the square footage of similar types of
improvements within the District.
No new improvements are proposed to be added for Fiscal Year 2017/2018:
Landscaped Right -of -Ways
Landscaped Right -of -Ways with Soundwall
201712018 City of Poway Landscape Maintenance Distnct 86-1
17 of 23
370,369 Sq, Ft.
2.275 Sq. Ft
Page _. _' 1:7
May 16, 2017, Item # 1.8
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Financial Services
Landscaped Median 8.929 Sq. Ft
The City shall annually conduct an audit to determine the average expenditure from the
General Fund for the maintenance of landscape improvements within the public right-of-
ways or public easements, calculated on a per square foot basis The general benefit for
Fiscal Year 2017/2018 is determined to be
$0.2748 per square foot for landscape medians.
$0.1142 per square foot for landscape right-of-ways. and
$0.2919 per square foot for landscape right-of-ways with soundwall
As part of the audit. the City shall determine the average expenditure from the General Fund
for the maintenance of District landscape improvements Based on an increase of 1.94
percent in the San Diego Consumer Price Index (the average of All Urban Consumers and
Urban Wage Earners and Clerical Workers), comparable services provided by the City of
Poway staff for general landscape services, the general benefit for Fiscal Year 2017/2018
will increase from Fiscal Year 2016/2017, based on the contribution rate per square foot. at
a maximum for this District.
•
370.369 sq ft. landscaped RNV X $0.1142 = $42.296.14
2.275 sq. ft. landscape RNV with soundwall X $0.2919 = $66407
8.929 sq. ft landscaped medians X $0.2748 = $2,453.69
All other maintenance. operation, administrative, and incidental costs which exceed the
City's general benefit contribution to the public -at -large are of special benefit and assessed
to the District.
The City shall have an option as to how it will make the general benefit contributions to the
District. The City shall make its general benefit contribution by either:
providing irrigation water to the District for irrigation of LIVID improvements in an
amount equal to the City's general benefit contribution, or
paying directly to the District from the General Fund a dollar amount equal to the
City's general benefit contribution.
C. ASSESSMENT METHODOLOGY
The total cost of special benefit for maintenance of the public improvements funded by the District
will be assessed to the various parcels in the District in proportion to the benefit units assigned
to each parcel, in relationship to the total benefit units assigned to all parcels being assessed.
Residential Land Uses
All residential subdivisions shall be assessed proportional to special benefit received based on
one (1) benefit unit per residential dwelling unit.
2017/2018 City of Poway Landscape Maintenance Distnct 86-1 Page 2 c'
18 of 23 May 16, 2017, Item # 1.8
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Non-residential Land Uses
All non-residential parcels shall be assessed proportional to special benefit received based on
the average planned dwelling unit density throughout the urban areas of the City (four dwelling
units per acre), the equivalent of four (4) benefit units per acre
Non-residential land uses typically provide services and/or employment opportunities for the City
that benefit all lands throughout the City. Since these non-residential land uses can occur
throughout the City, the planned. average density of residential dwelling units per acre for the
urban areas of the City has been calculated. The non-residential land uses are considered to
dislocate residential units. Therefore. the number of residential dwelling units dislocated. based
on the average dwelling units per acre. has been assigned to non-residential lands This method
determines an equivalent benefit to residential land uses. Appendix B details the calculation of
the average residential units per acre planned within the urban areas of the City Urban areas
have been defined as the parcels receiving water and sewer services.
In -Lieu Assessments
Under provisions of City policy, parcels may contribute in -lieu assessments by providing
equivalent maintenance services for District improvements within public right-of-ways or public
easements immediately adjacent to their lands.
For Fiscal Year 2017/2018 the TPM 90-06 development known as the Church of Latter Day
Saints property which is identified as Zone B. and the TTM 88-15 development known as the
Green Valley Estates which is identified as Zone E, currently have agreements in place with the
City to maintain the right-of-ways bordering those developments As such, the properties in these
two Zones will not be levied assessments for Fiscal Year 2017/2018.
Non -benefiting Parcels
All public and private streets, avenues, lanes, roads, drives, courts, alleys, all public easements
and right-of-ways, all dedicated open space parcels, and District maintained parcels are
determined to not receive special benefit from the District's improvements and are therefore not
assessed.
Benefit Units (BUs)
As described above. the number of assessable benefit units attributable to each parcel receiving
special benefit has been calculated and can be found in the Assessment Roll (Appendix B)
The assessment methodology utilized is as described above. Based on this methodology, the
benefit units, and the Fiscal Year 2017/2018 proposed assessment for each parcel were
calculated and are shown in the Assessment Roll (Appendix B).
• The calculated Fiscal Year 2017/2018 assessment for Zone A, Zone C, and Zone D is
proposed to remain at the Fiscal Year 2016/2017 assessment rate of $243.04 per benefit
unit.
• The calculated Fiscal Year 2017/2018 assessment for Zone B and E is proposed to be at
zero dollars
D. MAXIMUM ASSESSMENT RATE
The approved maximum assessment rate for the District was established and has remained at
$243.04 per benefit unit for Zone A. Zone C. Zone D and Zone E The District currently has no
2017/2018 City of Poway Landscape Maintenance District 86-1 Page 9 of t;;
19 of 23 May 16, 2017, Item # 1.8
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approved escalation factor for increasing the maximum assessment rate for the District
Assessments. The maximum assessment rate establishes an approved upper limit on the
annual assessment: however, the assessment rate levied by the District may be less than the
maximum amount in any given year if not required to meet the budgetary needs for that year If
the long term budgetary needs of the District would require an increase in the rate greater than
the maximum assessment rate in order to meet those needs, then any proposed increase in the
maximum assessment rate would require property owner balloting procedures as dictated by
Article XIIID.
/V DISTRICT BUDGETS
A. DESCRIPTION OF BUDGET ITEMS
The 1972 Act provides that the estimated costs of the improvements shall include the total cost
of the maintenance and servicing of the improvements for the entire Fiscal Year 2017/2018.
commencing July 1, 2017 and ending June 30, 2018, including incidentals. which may include
reserves to operate the District.
The 1972 Act also provides that the amount of any surplus, deficit, or contribution be included in
the estimated cost of improvements. The net amount to be assessed on the lots or parcels within
the District is the total cost of maintenance and servicing with adjustments either positive or
negative for reserves. surpluses. deficits. and/or contributions.
2017/2018 City of Poway Landscape Maintenance District 86-1 Pay.
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B. PROPOSED ZONE BUDGETS FISCAL YEAR 17/18
$2.404
$833
$0
$30.613
BUDGET ITEMS
Zone A
Zone 8 41)
Zone C
Zone D
Zon* E 11)
Total
EXPENDITURES'
0
0
Maintenance
$110.832
$0
$9,734
$3.374
$0
$123.940
Waterpower
148.829
0
13,070
4.531
0
166,430
Administration:-'
37.826
0
3,322
1,152
0
42.300
Total Expenditures
$297,087
$0
$26,126
$9,057
$0
$332,670
REVENUES
City General Benefit Contnbution
$40,611
$0
$3.567
$1.236
$0
$45.414
Assessment Revenue
207.313
0
18,228
6.319
0
231.860
Interest Revenue
2.710
0
238
82
0
3,030
Reserve Fund Activity
46.853
0
4,093
1.419
0
52.366
Grant Revenue
0
0
0
0
0
0
Capital Project Closeout
0
0
0
0
0
0
Miscellaneous
0
0
0
0
0
0
Total Revenues
$297,487
$0
$26,126
$9.056
$0
$332,670
Total Number of Parcels
853
1
75
26
49
1 .004
Total Number of EBU
853.00
1.00
75.00
26.00
4900
1_004.00
Total Parcels Levied
853
75
26
954
EBU's Levied
85300
7500
2600
95400
Rate per EBU (Equivalent Benefit Units)
$243.04
$0.00
$243.04
$243.04
$243.04
$243.04
Maximum Rate per EBU
$243.04
$0.00
$243.04
$243.04
$243.04
$243.04
OPERATING RESERVE
Beginning Reserve Balance
$159,111
$0
$13,973
$4.844
$0
$177928
Transfers In/Out (CIP)
36,486
0
3.183
1.103
0
40 772
Reserve Fund Activity
(46,853)
0
(4,093)
(1.419)
0
(52.366)
Estimated Ending Reserve Balance
$148,744
$0
$13,063
$4,528
$0
$166,334
CAPITAL IMPROVEMENT RESERVE
CIP Fund Balance $27,376
CIP Transfers In/Out (Operating Reserve) (36,486)
CIP Projects 0
Estimated Ending CIP Reserve Balance (9,110)
"' Proposed assessment to be at zero dollars in FY17/18.
12, Includes cost allocation City staff support services.
$0
$2.404
$833
$0
$30.613
0
(3,183)
(1,103)
0
(40,772)
0
0
0
0
0
$0
2017/2018 City of Poway Landscape Maintenance Distnct 86-1
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(779) ($270) $0 ($10,158)
Page 11 of 13
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APPENDIX A - DISTRICT ASSESSMENT DIAGRAM
A District Diagram has been prepared for the District in the format required by the 1972 Act. and
is on file with the Special Districts Office of the Public Works Department, and by reference is
made part of this Report The Assessment Diagram is available for inspection at the Special
Districts Office of the Public Works Department. during normal business hours
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APPENDIX 8 - 201 712018 ASSESSMENT ROLL
Parcel identification, for each lot or parcel within the District, shall be the parcel as shown on
the County Assessor's Map for the year in which this Report is prepared.
Non -assessable lots or parcels include land principally encumbered by public or utility rights-
of-way and common areas These parcels will not be assessed.
A listing of parcels assessed within the District along with the proposed assessment amounts
has been identified as 'Fiscal Year 2017/2018 Assessment Rall," and is on file with the City
Clerk and is by reference made a part of this Report.
2017/2018 City of Poway Landscape Maintenance Distnct 86-1 Page 13 of 13
23 of 23 May 16, 2017, Item # 1.8