Item 1.8 - Engineer's Report and Reso Declaring the Intention to Levy and Collect Assessments; LMD 86-3 FY 2019-20APPROVED
G w'tY
City of Poway APPROVED AS AMENDED
DENIED (
SEE MINUTES)
C-17)#TME o {
COUNCIL AGENDA REPORT
REMOVED o
CONTINUED
Resolution No.
DATE: June 18, 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 Ws4for Maintenance
Operations
858) 668-4705 or eheidemann@poway.org
SUBJECT: Engineer's Report and Resolution Declaring the Intention to Levy and
Collect Assessments Within Poway Landscape Maintenance District 86-3
for Fiscal Year 2019-20 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 (LMD) 86-3 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 8). Fiscal Year 2019-20 assessment rates shall remain unchanged from the Fiscal
Year 2018-19 rates.
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 86-3 for Fiscal
Year 2019-20; 2) approve the corresponding Engineer's Report outlining the assessments for
Fiscal Year 2019-20; 3) direct the City Clerk to publish the approved Resolution; and 4) set the
public hearing for July 16, 2019.
Discussion:
Landscape Maintenance District 86-3 was formed on May 20, 1986, to maintain landscape
improvements required as conditions of approval for the various subdivisions or developments
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.
1 of 25 June 18, 2019, Item #1.8
District 86-3, Zone A includes the following residential developments:
TR'ACT'pRQJEC,T,NAME•
TM 3994 The Pond
TTM 88-03 Sycamore Springs
TTM 94- 02 Poway Oaks
District 86-3, Zone B (non-residential [commercial) developments) includes the following:
TRACT PRQJECT,NAME,
TPM 90-04 Wal-Mart
TTM 90-05 Creekside Plaza
Under Bldg. Permit Stein Mart Plaza (New Tenant)
DR 98-07NAR 98-11 Poway Hyundai
TPM 01-06 Hillside Village Apartments
DR 05-05 Solara Apartments
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 2019-20 budget and
resulting assessments.
There are currently 159 residential (Zone A); 16 non-residential, 205.936 commercial units and
two multi-residential, low-income housing apartments (Zone B) assessable parcels in LMD 86-3.
Fiscal Year 2019-20 assessments are proposed to remain unchanged from the Fiscal Year
2018-19 rates of$163.00 per benefit unit per year ($13.58 per month) for Zone A and $75.31
per benefit unit per year ($6.28 per month) for Zone B.
Proposition 218, 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. However, this does not exempt assessment increases in
future years. Subsequent increases in such assessments shall be subject to the procedures and
approval process set forth in Section 4 of Article XIII D.
Zone A is being assessed at the approved maximum assessment rate of$163.00 per benefit unit
and Zone B is being assessed less than the maximum at$75.31 per benefit unit. In 1998, property
owners within the District received ballots for a proposed increase as specified under Assessment
Law. Both Zones were balloted for an increase in assessments with annual cost indexing based
on the annual San Diego Consumer Price Index (SD-CPI). Zone A had a majority protest for the
increase, and therefore, failed to pass the ballot. Therefore, the assessment rate is proposed to
remain unchanged from the Fiscal Year 1997-98 rate.
The failure of an assessment increase by ballot for Zone A in Fiscal Year 1998-99 led to a
reduction of maintenance services. It is currently proposed that Zone A in this District reduce the
level of service to meet the revenue received, from level B to a level C for Fiscal Year 2019-20.
2 of 25 June 18, 2019, Item #1.8
Zone B passed the 1998-99 ballot allowing for the option of an annual increase based on the San
Diego Consumer Price Index on an as needed basis. Because projected revenues are sufficient
to fund anticipated budgetary needs, no increase to Zone B (non-residential) parcel assessments
is requested at this time. The assessment rate levied by the District for Zone B may be less than
the maximum amount in any given year if not required to meet 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 XIII 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 $163.00 per benefit unit for Zone A and $75.31 per benefit unit for Zone
B, for an estimated total of $42,295.42, will be used for the District's maintenance costs during
Fiscal Year 2019-20. A General Fund contribution of $8,070 ($1,345 for Zone A and $6,724 for
Zone B) will be made based upon average square footage maintenance costs for landscaped/
medians and rights-of-way 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 86-3 for Fiscal Year 2019-20
B. 2019/2020 Engineer's Annual Levy Report
Reviewed/Approved By: Reviewed By: Approved By:
nrimmk
Wendy`Kaserman Alan Fenstermacher Chri. Haz: e
Assistant City Manager City Attorney City Manager
3 of 25 June 18, 2019, Item #1.8
4 of 25 June 18, 2019, Item #1.8
RESOLUTION NO. 19-
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 86-3 FOR FISCAL YEAR 2019-20
WHEREAS, the City Council of the City of Poway desires to levy and collect assessments
within Poway Landscape Maintenance District 86-3 for the purpose of maintaining, servicing and
operating public landscape facilities located within the territory comprised of said district as shown
in the Engineer’s Report, included in the staff report as Attachment B, that is on file in the Office
of the City Clerk, pursuant to the Landscape and Lighting Act of 1972;
WHEREAS, assessments will not increase from the Fiscal Year 2018-19 assessment rate
of $163.00 per benefit unit for Zone A and $75.31 per benefit unit for Zone B;
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 rights-of-way. The total
general benefit contribution for Zones A and B has been calculated to be $8,070 ($1,345 and
$6,724, respectively);
WHEREAS, under Article XIII D, Section 5(b) of Proposition 218 (adopted by general vote
on November 5, 1996), the collection of Fiscal Year 2019-20 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 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.
SECTION 2: Proposed assessments are as detailed in the Engineer’s Report for Poway
Landscape Maintenance District No. 86-3 for Fiscal Year 2019-20 included in the staff report as
Attachment B and attached hereto.
SECTION 3: Notice is hereby given that a public hearing is scheduled in the regular
meeting place of the City Council, being the Council Chambers, City Hall, on the following date
and time:
Tuesday, July 16, 2019, at 7:00 p.m.
At that time this legislative body will hear protests or objections in reference to the annual levy of
assessments and to any other matters contained in this resolution. Any persons who wish to
object to the proceedings or the annual levy should file a written protest with the City Clerk prior
to the time set for the public hearing. If there is a majority protest against the levy of an annual
assessment that is increased from the previous year, the proposed increase in the assessments
shall be abandoned. A majority protest exists if, upon the conclusion of the hearing, written
ATTACHMENT A
Resolution No. 19-
Page 2
5 of 25 June 18, 2019, Item #1.8
protests filed and not withdrawn, represent property owners owning more than 50% of the
assessable area of land within the District.
SECTION 4: The City Clerk is hereby authorized and directed to give notice as required
by law by causing a copy of this Resolution to be published in the Poway News Chieftain, a
newspaper of general circulation in the City of Poway, said publication to be completed not less
than ten (10) days prior to the date set for the public hearing.
PASSED, ADOPTED AND APPROVED at a Regular Meeting of the City Council of the
City of Poway, California on the 18th day of June, 2019 by the following vote, to wit:
AYES:
NOES:
ABSENT:
DISQUALIFIED:
______________________________
Steve Vaus, Mayor
ATTEST:
________________________________
Faviola Medina, CMC, City Clerk
City of Poway
Landscape Maintenance
Assessment District 86-3
2019/2020 ENGINEER'S ANNUAL LEVY REPORT
INTENT MEETING: JUNE 18, 2019
PUBLIC HEARING: JULY 16, 2019
sogizilh
27368 Via Industria PE
Suite 200
Temecula,CA 92590
T 951.587 35001 800.755.6864
F 951.587 35101888.326.6864
Property Tax Information Line
T.866 807 6864 WWILLDAN
www.willdan.com/Financial
6 of 25 June 18, 2019, Item #1.8ATTACHMENT B
AFFIDAVIT FOR THE ENGINEER'S ANNUAL LEVY REPORT
Landscape Maintenance District 86-3
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 2019/2020, 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 / 5-1'h _
day of /yr r ) 2019.
Willdan Financial Services
Assessment Engineer
On Behalf of the City of Poway
By:
Susarla Hemandez
Project Manager, District Administration Services
By: Qp 01=ESSi
noRichardKopecky
R. C. E. # 16742
OF C
7 of 25 June 18, 2019, Item #1.8
TABLE OF CONTENTS
OVERVIEW 1
A. INTRODUCTION 1
B. COMPLIANCE WITH CURRENT LEGISLATION 1
C. IMPROVEMENTS AUTHORIZED BY THE 1972 ACT 2
II. DESCRIPTION OF THE DISTRICT 3
A. BOUNDARIES OF THE DISTRICT 3
B. DESCRIPTION OF THE DISTRICT IMPROVEMENTS 4
C. PROPERTIES BENEFITING FROM IMPROVEMENTS 4
III. METHOD OF APPORTIONMENT 4
A. GENERAL 4
B. BENEFIT ANALYSIS 5
C. ASSESSMENT METHODOLOGY 7
D. MAXIMUM ASSESSMENT RATE 8
IV. DISTRICT BUDGETS 9
A. DESCRIPTION OF BUDGET ITEMS 9
B. ZONE A BUDGET 10
C. ZONE B BUDGET 11
APPENDIX A - DISTRICT ASSESSMENT DIAGRAM 12
APPENDIX B - 2019/2020 ASSESSMENT ROLL 13
8 of 25 June 18, 2019, Item #1.8
Wwi L L DA N
I. 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 86-3 ("District').
formed May 20. 1986. The District is levied 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") describes the District. any annexations. or
changes to the District including substantial changes to the District improvements. and the
proposed assessments for Fiscal Year 2019/ 2020. The proposed assessments are based on
the estimated cost to maintain the improvements that provide special benefits to properties
within the District. The costs of improvements and the annual levy include all expenditures.
deficits. surpluses. revenues. and reserves. 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 specific 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
2019/2020 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 2019/2020.
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 and has made the following findings and
determinations:
Pursuant to Article XIIID. Section 5. certain existing assessments are exempt from the
substantive and procedural requirements of 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
10109/2020 City of Poway Landscape Maintenance District 86-3 Page 1 of 13
June 18, 2019, Item #1.8
W'wi LLDAN
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.
Costs associated with any elections held for the approval of a new or increased
assessment.
2Q1 o2Q City of Poway Landscape Maintenance District 86-3 Page 2 of 13
June 18, 2019, Item #1.8
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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.
l/. 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.
The Boundary Map shows the District boundary and the general location of District
improvements.
On February 25. 1992. by Council Resolution No. 92-039. Landscape Maintenance District
86-3 was divided into two zones: 86-3 Zone A for residential and 86-3 Zone B for commercial.
Assessments for each zone of the District(LMD 86-3A and B) are being calculated by applying
the zones' approved maximum assessment rate times the total units within each District zone.
No new improvements or assessed parcels were added to the District during Fiscal Year
2018/2019.
District 86-3 Zone A (159 residential parcels assessed). includes the following developments:
Tract Pro'ect Name
TM 3994 The Pond
TTM 88-03 Sycamore Springs
TTM 94-02 Poway Oaks
District 86-3 Zone B (16 non-residential parcels; 205.936 commercial units: and 2 multi-
residential. low-income housing apartments having 40.36 units) consists of the following
developments:
Tract Pro.ect Name
TPM 90-04 Wal Mart
TTM 90-05 Creekside Plaza
Under Bldg. Permit SteinMart Plaza/New Tenant
DR 98-07NAR 98-11 Poway Hyundai
TPM 01-06 Hillside Village Apartments
DR 05- 05 Solara Apartments
2;190/2020 City of Poway Landscape Maintenance District 86-3 Page 3 of 13
June 18, 2019, Item #1.8
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B. DESCRIPTION OF THE DISTRICT IMPROVEMENTS
Facilities to be maintained by Zone A of the District are defined as landscape improvements
within the right-of-ways and open space areas associated with annexed subdivisions and
which are adjacent to portions of Pomerado Road. Old Pomerado Road. Beeler Creek. Metate
Lane. Oak Knoll and Sage View Roads. including natural open space areas within the
associated subdivisions. Facilities to be maintained by Zone B of the District are defined as
landscape improvements within the right-of-ways and adjacent to portions of Poway. Midland.
and Community Roads.
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.
The City has defined the following service levels on the basis of how frequent landscaping
maintenance is performed:
Service Level A: Maintenance once a week.
Service Level B: Maintenance once every other week.
Service Level C: Maintenance once a month.
Zone A is within Service Level C and Zone B is within Service Level A for Fiscal Year
2019/2020.
C. 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 Assessment Law and in this Report, shall be assessed to those
properties determined to receive benefit from the District's improvements.
Ill. 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:
2Q1 o262D City of Poway Landscape Maintenance District 86-3 Page 4 of 13
June 18, 2019, Item #1.8
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The net amount to be assessed upon lands within an assessment district may be
apportioned by any formula or method which fairly distnbutes 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 parcel's 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.
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:
2Q.1991262D City of Poway Landscape Maintenance District 86-3 Page 5 of 13
June 18, 2019, Item #1.8
W'WILLDAN
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.
Zone A No new improvements were added during Fiscal Year 2018/ 2019:
LANDSCAPE ELEMENT QUANTITY
Landscaped Right-of-Ways 11.034 Sq. Ft.
Zone B: No new improvements were added during Fiscal Year 2018/2019:
LANDSCAPE ELEMENT QUANTITY
Landscaped median 22.913 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 2019/ 2020 is determined to be:
0.2935 per square foot for landscaped medians. and
0.1219 per square foot for landscaped right-of-ways
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
3.66 percent in the San Diego-Carlsbad 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
14//f Z5
City of Poway Landscape Maintenance District 86-3 Page 6 of 13
June 18, 2019, Item #1.8
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for Fiscal Year 2019/2020 will increase from Fiscal Year 2018/ 2019, based on the
contribution rate per square foot. at a maximum for this District
Zone A
11.034 sq. ft. landscaped R/W X 0 1219 = $1.345.04
Zone B
22.913 sq. ft. landscaped median X 0.2935 = $6.724.97
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 LMD 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.
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.
2Q1 o/2Q2D City of Poway Landscape Maintenance District 86-3 Page 7 of 13
June 18, 2019, Item #1.8
W'wi LLDAN
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.
No parcels within the District are scheduled to contribute in-lieu assessments in Fiscal Year
2019/2020.
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 2019/ 2020 proposed assessment for each parcel were
calculated and are shown in the Assessment Roll (Appendix B).
The calculated Fiscal Year 2019/2020 assessment for Zone A is proposed to remain
at the Fiscal Year 2018/2019 assessment rate of$163.00 per benefit unit.
The calculated Fiscal Year 2019/2020 assessment for Zone B is proposed to remain
at the Fiscal Year 2018/2019 assessment rate of $75.31 per benefit unit.
D. MAXIMUM ASSESSMENT RATE
The approved maximum assessment rates for the District zones are $163.00 per benefit unit
for Zone A. Zone B is being assessed at $75.31 per benefit unit which is less than the
maximum approved for this District. In 1998, property owners within the District received
ballots as specified under Assessment Law. Zones A and B were balloted for an increase in
assessments, including yearly cost indexing adjustments based on the San Diego-Carlsbad
Consumer Price Index (SD-CPI). An assessment rate increase for Zone A failed under the
balloting process of property owners. Zone B property owners voted for an increase in
assessment rates. and also approved any necessary future assessment increases based on
related SD-CPI.
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 owning balloting
procedures as dictated by Article XIIID.
2Q1 ol2Q2D City of Poway Landscape Maintenance District 86-3 Page 8 of 13
June 18, 2019, Item #1.8
7W1 [[DAN
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
2019/2020. commencing July 1, 2019 and ending June 30. 2020, 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.
zQ19I OQ City of Poway Landscape Maintenance District 86-3 Page 9 of 13
June 18, 2019, Item #1.8
W'wi LLDAN
B. ZONE A BUDGET
Fiscal Year Fiscal Year Fiscal Year
BUDGET ITEMS 2017120180) 201812019(2) 2019120200)
EXPENDITURES:
Maintenance 12,740 12,615 8.740
Water/power 17.230 11.229 12,460
Administration' 4.641 5 080 5.345
Total Expenditures 34,611 28,924 26,545
REVENUES
City General Benefit Contribution 1.260 1.298 1.345
Assessment Revenue 25.937 25.917 25,917
Interest Revenue 563 480 480
Grant Revenue 0 0 0
Capital Project Closeout 0 0 0
Miscellaneous 0 0 0
Total Revenues 27,760 27,695 27,742
DISTRICT STATISTICS
Total Number of Parcels 159
Total Parcels Levied 159
Total EBU's 159
Rate per EBU (Equivalent Benefit Units) 163.00
Maximum Rate per EBU 163.00
OPERATING RESERVE
Beginning Reserve Balance 15.546 17,306 14,462
Transfers In/Out (CIP) 8.611 1,615) 2.386)
Reserve Fund Activity 6,851) 1 229) 1,197
Estimated Ending Reserve Balance 17,306 14,462 13,273
CAPITAL IMPROVEMENT RESERVE
CIP Fund Balance 37,632 29,021 30,636
CIP Transfers In/Out(Operating Reserve) 8,611) 1,615 2.386
CIP Projects 0 0 0
mated Ending CIP Reserve Balance 29,021 30,636 33,022
1)
Actual figures per Finance Fiscal Year 2017/2018 activity sheets
2) Approved budget
3)Proposed budget
4)Includes cost allocation for City staff support services.
2Q19oi2020 City of Poway Landscape Maintenance District 86-3 Page 10 of 13
June 18, 2019, Item #1.8
Wwi [[DAN
C. ZONE B BUDGET
Fiscal Year Fiscal Year Fiscal Year
BUDGET ITEMS 2017/20181' 2018/2019(2) 201912020(3)
EXPENDITURES:
Maintenance 14,840 19,793 18.670
Water/power 6,761 5.819 6.830
Administration,' 4 321 6.730 6 730
Total Expenditures 25,922 32,342 32,230
REVENUES
City General Benefit Contribution 6,296 6,487 6,725
Assessment Revenue 16.056 16.379 16,379
Interest Revenue 1.918 1.600 1,600
Grant Revenue 0 0 0
Capital Project Closeout 0 0 0
Miscellaneous 0 0 0
Total Revenues 24,270 24,466 24,704
DISTRICT STATISTICS
Total Number of Parcels 16
Total Parcels Levied 16
Total EBU's 217 48
Rate per EBU (Equivalent Benefit Units) 75.31
Maximum Rate per EBU 126.71
OPERATING RESERVE
Beginning Reserve Balance 10 286 12.961 16,171
Transfers In/Out(CIP) 4.327 11.086 7,470
Reserve Fund Activity 1 652) 7,876) 7,526)
Estimated Ending Reserve Balance 12,961 16,171 16,115
CAPITAL IMPROVEMENT RESERVE
CIP Fund Balance 149,506 145,179 134,093
CIP Transfers In/Out (Operating Reserve) 14.327) 11 086) 7 470)
CIP Projects 0 0
Estimated Ending CIP Reserve Balance 145,179 134,093 126,623
Actual figures per Finance Fiscal Year 2017/2018 activity sheets
iz' Approved budget
3,Proposed budget
4i Includes cost allocation for City staff support services
20199//2020 City of Poway Landscape Maintenance District 86-3 Page 11 of 13June 18, 2019, Item #1.8
WWI LLDAN
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.
2Q199cHIS City of Poway Landscape Maintenance District 86-3 Page 12 of 13
June 18, 2019, Item #1.8
WWI LLDAN
APPENDIX B - 2019/2020 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 2019/ 2020 Assessment Roll". and is on file with the City
Clerk and is by reference made a part of this Report.
2019/ Q2D City of Poway Landscape Maintenance District 86-3 Page 13 of 13
June 18, 2019, Item #1.8
APPENDIX B1
City of Poway
Landscape Maintenance District 86-3 Zone A
Fiscal Year 2019/2020 Preliminary Roll
Assessor Parcel Number Dwelling Benefit
Landuse Assessment
Units Units
316- 320-02-00 1 1.00 RESIDENTIAL 5163 00
316-320-03-00 1 1 00 RESIDENTIAL 163 00
316- 320-04-00 1 1 00 RESIDENTIAL 163 00
316-320-05-00 1 1 00 RESIDENTIAL 163 00
316-320-06- 00 1 1 00 RESIDENTIAL 163.00
316-320-07-00 1 1 00 RESIDENTIAL 163 00
316-320-08-00 1 1 00 RESIDENTIAL 163 00
316-320-09-00 1 1 00 RESIDENTIAL 163 00
316-320-10-00 1 1.00 RESIDENTIAL 163 00
316-320-11-00 1 100 RESIDENTIAL 163 00
316-320-12-00 1 100 RESIDENTIAL 163 00
316-320-13-00 1 100 RESIDENTIAL 163 00
316-320-14-00 1 100 RESIDENTIAL 163 CO
316-320-15-00 1 100 RESIDENTIAL 163 00
316-320-16-00 1 1 00 RESIDENTIAL 163 00
316-320-17-00 1 100 RESIDENTIAL 163.00
316-320-18-00 1 1-00 RESIDENTIAL 163 00
316-320-19-00 1 1 00 RESIDENTIAL 163 00
316-320-20-00 1 1 00 RESIDENTIAL 163 00
316-320-21-00 1 1.00 RESIDENTIAL 163 00
316-320-22-00 1 1.00 RESIDENTIAL 163.00
316-320-23-00 1 1 00 RESIDENTIAL 163 00
316-320-24- 00 1 1 00 RESIDENTIAL 163 00
316-320-25-00 1 1.00 RESIDENTIAL 163.00
316-320-26-00 1 1 00 RESIDENTIAL 163 00
316-320-27-00 1 1 00 RESIDENTIAL 163 00
316-320-28-00 1 1.00 RESIDENTIAL 163 00
316-320-29-00 1 1 00 RESIDENTIAL 163 00
316-320-30-00 1 1 00 RESIDENTIAL 163 00
316-320-31-00 1 100 RESIDENTIAL 163 00
316-320-32-00 1 100 RESIDENTIAL 163 00
316-320-33-00 1 1.00 RESIDENTIAL 163 00
316-320-34-00 1 100 RESIDENTIAL 163 00
316-320-36-00 1 1 00 RESIDENTIAL 163 00
316-321-01-00 1 100 RESIDENTIAL 163 00
316-321-02- 00 1 100 RESIDENTIAL 163.00
316-321-03-00 1 100 RESIDENTIAL 163 00
316-321-04-00 1 1 00 RESIDENTIAL 163 00
poi316-321-05-00 1 100 RESIDENTIAL 163 00
316-321-06-00 1 1 00 RESIDENTIAL 163 00
316-321-07-00 1 100 RESIDENTIAL 163 00
pos 316-321-08-00 1 1 00 RESIDENTIAL 163 00
316-321-09-00 1 1 00 RESIDENTIAL 163.00
316-321-11-00 1 100 RESIDENTIAL 16300
316-321-12-00 1 100 RESIDENTIAL 163 00
316-321-13-00 1 100 RESIDENTIAL 163 00
316-321-14-00 1 1.00 RESIDENTIAL 163.00
316-321-15-00 1 100 RESIDENTIAL 163.00
316-321-16-00 1 100 RESIDENTIAL 163 00
316-321-17-00 1 100 RESIDENTIAL 163 00
Nldldan F,nanc al Services Zone A Preliminary Roll
22 of 25 June 18, 2019, Item #1.8
Assessor Parcel Number Dwelling Benefit
Landuse Assessment
Units Units
316-321-18-00 1 1 00 RESIDENTIAL 163.00
316-321-19-00 1 100 RESIDENTIAL 163 00
316-321-20-00 1 1 00 RESIDENTIAL 163 00
316-321-21-00 1 100 RESIDENTIAL 163 00
316-321-22-00 1 100 RESIDENTIAL 163.00
0 316-321-23-00 1 100 RESIDENTIAL 163.00
316-321-24-00 1 100 RESIDENTIAL 163.00
316-321-25-00 1 1 00 RESIDENTIAL 163.00
0
316-321-26- 00 1 1 00 RESIDENTIAL 163.00
316-321-27-00 1 1.00 RESIDENTIAL 163 00
316-321-28-00 1 100 RESIDENTIAL 163 00
316-321-29-00 1 1 00 RESIDENTIAL 163 00
316-321-30-00 1 1 00 RESIDENTIAL 163 00
316-321-31-00 1 1 00 RESIDENTIAL 163 00
316-321-32-00 1 1 00 RESIDENTIAL 163.00
316-321-33-00 1 1 00 RESIDENTIAL 163 00
316-321-35-00 1 100 RESIDENTIAL 163 00
317-211-05-00 1 100 RESIDENTIAL 163 00
317-211-06-00 1 100 RESIDENTIAL 163 00
317-211-07-00 1 100 RESIDENTIAL 163 00
317-211-08-00 1 1 00 RESIDENTIAL 163 00
317-211-09-00 1 100 RESIDENTIAL 163 00
317-211-10-00 1 1 00 RESIDENTIAL 163 00
317-211-11-00 1 100 RESIDENTIAL 163 00
317-211-12-00 1 1.00 RESIDENTIAL 163 00
317-211-13-00 1 100 RESIDENTIAL 163.00
317-211-14-00 1 1 00 RESIDENTIAL 163.00
317-211-15-00 1 100 RESIDENTIAL 163 00
poi 317-211-16-00 1 100 RESIDENTIAL 163 00
317-211-17-00 1 100 RESIDENTIAL 163 00
317-211-18-00 1 100 RESIDENTIAL 163 00
317-211-19-
000
1 100 RESIDENTIAL 163 00
317-211-20-00 1 1 D0 RESIDENTIAL 163 00
317-211-21-00 1 100 RESIDENTIAL 163 00
317-211-22-00 1 100 RESIDENTIAL 163 00
ill317-211-23-00 1 100 RESIDENTIAL 163 00
317-211-24-00 1 100 RESIDENTIAL 163.00
317-211-25-00 1 100 RESIDENTIAL 163.00
317-211-26-00 1 100 RESIDENTIAL 163 00
317-211-27-00 1 1.00 RESIDENTIAL 163 00
317-211-28-00 1 100 RESIDENTIAL 163.00
317-211-29-00 1 100 RESIDENTIAL 163 00
317-211-30-00 1 100 RESIDENTIAL 163.00
317-211-31-00 1 100 RESIDENTIAL 163 00
317-211-32-00 1 100 RESIDENTIAL 163 00
317-211-33-00 1 100 RESIDENTIAL 163 00
317-211-34-00 1 1 00 RESIDENTIAL 163 00
317-211-35-00 1 1.00 RESIDENTIAL 163 00
317-211-36-00 1 100 RESIDENTIAL 163 00
317-211-37-00 1 100 RESIDENTIAL 163 00
317-211-38-00 1 100 RESIDENTIAL 163 00
317-211-39-00 1 100 RESIDENTIAL 163 00
317-211-40-00 1 100 RESIDENTIAL 163 00
317-211-42-00 1 1.00 RESIDENTIAL 163 00
317-211-43-00 1 100 RESIDENTIAL 163 00
317-211-44-00 1 100 RESIDENTIAL 163 00
317-211-45-00 1 100 RESIDENTIAL. 163 00
Willdan Financial Services Zone A Preliminary Roll Page 2 of 3
23 of 25 June 18, 2019, Item #1.8
Assessor Parcel Number Dwelling Benefit
Landuse Assessment
Units Units
317-211-46-00 1 100 RESIDENTIAL 163.00
317-211-47-00 1 100 RESIDENTIAL 163 00
317-211-48-00 1 100 RESIDENTIAL 163 00
317-211-49-00 1 100 RESIDENTIAL 163 00
317-211-50-00 1 100 RESIDENTIAL 163.00
317-211-51-00 1 1 00 RESIDENTIAL 163 00
317-211-52-00 1 100 RESIDENTIAL 163 00
317-211-53-00 1 100 RESIDENTIAL 163 00
317-211-54-00 1 100 RESIDENTIAL 163 00
317-211-55-00 1 1.00 RESIDENTIAL 163 00
317-211-56-00 1 100 RESIDENTIAL 163 00
317-211-57-00 1 1 00 RESIDENTIAL 163 00
317-211-58-00 1 100 RESIDENTIAL 163 00
317-211-59-00 1 1.00 RESIDENTIAL 163 00
317-211-60-00 1 100 RESIDENTIAL 163 00
317-211-61-00 1 100 RESIDENTIAL 163 00
317-211-62- 00 1 1 00 RESIDENTIAL 163 00
317-211-63-00 1 100 RESIDENTIAL 163 00
317-211-64-00 1 100 RESIDENTIAL 163 00
317-211-65-00 1 100 RESIDENTIAL 163.00
317-211-66-00 1 100 RESIDENTIAL 163 00
317-211-67-00 1 1.00 RESIDENTIAL 163 00
317-792-01-00 1 100 RESIDENTIAL 163 00
317-792-02-00 1 1 00 RESIDENTIAL 163.00
317-792-03-00 1 1 00 RESIDENTIAL 163.00
317-792-04-00 1 1.00 RESIDENTIAL 163 00
317-792-05-00 1 1 00 RESIDENTIAL 163 00
317-792-06-00 1 1 00 RESIDENTIAL 163.00
317-792-07-00 1 100 RESIDENTIAL 163 00
317-792-08-00 1 1 00 RESIDENTIAL 163 00
317-792-09-00 1 100 RESIDENTIAL 163 00
317-792-10-00 1 100 RESIDENTIAL 163 00
P317-792-11-00 1 100 RESIDENTIAL 163 00
317-792-12-00 1 1.00 RESIDENTIAL 163 00
317-792-13-00 1 100 RESIDENTIAL 163 00
317-792-14-00 1 1 00 RESIDENTIAL 163.00
317-792-15-00 1 100 RESIDENTIAL 163 00
317-792-16-00 1 1 00 RESIDENTIAL 163 00
317-792-17-00 1 100 RESIDENTIAL 163 00
317-792-18-00 1 1 00 RESIDENTIAL 163 00
317-792-19-00 1 100 RESIDENTIAL 163 00
or. 317-792-20-00 1 100 RESIDENTIAL 163 00
317-792-21-00 1 100 RESIDENTIAL 163 00
317-792-22- 00 1 1.00 RESIDENTIAL 163 00
317-792-23-00 1 100
RESIDENTIAL0
163 00
317-792-24-00 1 1 00 RESIDENTIAL 163 00
317-792-25-00 1 1.00 RESIDENTIAL 163 00
317-792-26-00 1 100 RESIDENTIAL 163 00
317-792-27-00 1 1 00 RESIDENTIAL 163 00
317-792-28-00 1 1 00 RESIDENTIAL 163.00
317-792-29-00 1 1 00 RESIDENTIAL 163-00
317-792-30- 00 1 1 00 RESIDENTIAL 163.00
TOTALS 169.00 525,917.00
TOTAL PARCEL COUNT 159
Willdan Financial Services Zone A Preliminary Roll Page 3 of 3
24 of 25 June 18, 2019, Item #1.8
APPENDIX B2
City of Poway
Landscape Maintenance District 86-3 Zone B
Fiscal Year 201912020 Preliminary Roll
Assessor Parcel Number Acreage EBU Landuse Assessment
317-101-53-00 2.51 10.04 NON RESIDENTIAL 756 12
317-130-47-00 9 07 36.28 NON RESIDENTIAL 2.73226
317-130-67-00 0 0 2 64 NON RESIDENTIAL 198 82
317-130-68-00 136 544 NON RESIDENTIAL 409 70
317-130-72-00 16 49 65 96 NON RESIDENTIAL 4.967 44
317-190-44-00 1 67 668 NON RESIDENTIAL 503 08
317-480-20-00 7.58 30 32 NON RESIDENTIAL 2283.40
317-820-01-00 0.92 368 NON RESIDENTIAL 277 14
317-820-02-00 0 69 2 76 NON RESIDENTIAL 207 86
317-820-03-00 0 69 2 76 NON RESIDENTIAL 207 86
317- 820-04-00 436 1744 NON RESIDENTIAL 1.313 42
317-820-05-00 1 54 6 16 NON RESIDENTIAL 463.92
317-820-06-00 0 81 324 NON RESIDENTIAL 244.00
317-820-07-00 0 92 368 NON RESIDENTIAL 277.14
317-820-08-00 0.82 3.28 NON RESIDENTIAL 247 02
317-820-09-00 428 17.12 NON RESIDENTIAL 1289.32
TOTAL 217.4$ 16,373.50
TOTAL PARCEL COUNT 16
Willdan Financial Services Zone B Preliminary Roll Page 1 of 1
25 of 25 June 18, 2019, Item #1.8