Item 9 - Engineer's Report and Resolution Declaring the Intention to Levy and Collect Assessments; LMD 87-1 for FY21-22June 15, 2021, Item #9DATE: TO: FROM: CONTACT: SUBJECT: Summary: AGENDA RE PO RT City of Poway CITY COUNCIL June 15, 2021 Honorable Mayor and Members of the City C~~ncil Eric Heidemann, Director of Public Works ~ V f Will Wiley, Assistant Director of Public Works for Maintenance Operation (858) 668-4705 or wwiley@poway.org Engineer's Report and Resolution Declaring the Intention to Levy and Collect Assessments Within Poway Landscape Maintenance District 87-1 for Fiscal Year 2021-22 and Set Date for Public Hearing 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) 87-1 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). The Fiscal Year 2021-22 assessment rate shall remain unchanged from the Fiscal Year 2020-21 rate. Recommended Action: It is recommended that the City Council adopt the Resolution. Discussion: LMD 87-1 was formed on January 27, 1987, to maintain landscape improvements installed in conjunction with new subdivisions within the boundaries of the District. The following is a list of subdivisions currently annexed into and assessed by the District: TRACT PROJECT NAME TTM 88-04R Rolling Hills Estates I and II TTM 97-03 Valencia TPM 98-07 Kimball TTM 98-07 Aviano/Bothwell TPM 19952 Rexford TPM 01-05 Dynasty Development Section 22624 of the Streets and Highways Code requires the City Council to approve an engineering 1 of 24
June 15, 2021, Item #9report and adopt a resolution of Intention prior to establishing a budget each year. The Engineer's Report (Attachment B) outlines the proposed Fiscal Year 2021-22 budget and resulting assessments. The District currently maintains approximately 297,620 square feet of landscaping under contract. Under Assessment Law [Article XIII D, Section 2 U)], those properties not receiving special benefit are not included on the LMD 87-1 assessment rolls. The District currently has no approved escalation factor for increasing the maximum assessment rate. Proposition 218, which was passed by California voters on November 6, 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 Das 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 XIII D. On May 21, 2019, a ballot measure was proposed and passed, to reorganize the existing LMD 87-1 forming a new landscape maintenance district (LMD 19-1) by detaching 327 commercial properties. The existing residential development areas within LMD 87-1 are to remain as LMD 87-1. Because expenses are increasing, services will need to be reduced to align with assessment revenue and to accommodate unexpected repair needs that arise. Service levels for landscape maintenance services will be reduced from level B to level C. A service level B consists of performing landscape maintenance services (e.g., irrigation inspection, removal of trash and debris, trimming of shrubs, fertilizing, mowing, edging pruning, sweeping) for respective areas within LMD 87-1 on a bi-monthly basis. Under a service level C, landscape maintenance services will be conducted on a monthly basis. Certain improvements provide a shared benefit to properties in the District, and other adjacent properties, and are therefore equally funded by the District and other sources (LMD 19-1 and/or the General Fund). For a full description of these shared improvements, please refer to the LMD 19-1 Engineer's Report. Please also refer to the District Diagram in this report for the location of these shared improvements. 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 review under the California Environmental Quality Act (CEQA). Fiscal Impact: LMD 87-1 does not include a voter-approved inflator which puts pressure on service levels as expenses increase over time due to inflation while revenues do not. The assessment rate shall remain at the Fiscal Year 2020-21 rate. Revenues collected at the rate of $210.68 per benefit unit per year, an estimated total of $41,082.60, will be used for the District's maintenance costs during Fiscal Year 2021-22. A General Fund contribution of $10,274.00 will be made based upon average maintenance costs for the landscaped medians and rights-of-way that provide general benefit to the City. 2 of24
June 15, 2021, Item #9Public Notification: None. Attachments: A. Resolution B. 2021-22 Engineer's Annual Levy Report Reviewed/ Approved By: Assistant City Manager 3of24 Reviewed By: Alan Fenstermacher City Attorney City Manager
June 15, 2021, Item #9RESOLUTION NO. 21-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 87-1 FOR FISCAL YEAR 2021-22 AND APPROVING THE ENGINEER'S REPORT WHEREAS, the City Council of the City of Poway desires to levy and collect assessments within Poway Landscape Maintenance District 87-1 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 2020-21 assessment rate of $210.68 per benefit unit per year for the residential properties of Rolling Hills Estates I and II, Valencia, Kimball, Aviano/Bothwell, Rexford and Dynasty Development; 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. This general benefit contribution for LMD 87-1 has been calculated to be $10,274.00; WHEREAS, under Article XIII D, Section 5(b) of Proposition 218 (adopted by general vote on November 5, 1996), the collection of Fiscal Year 2021-22 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. 87-1 for Fiscal Year 2021-22 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 20, 2021, 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 4of24 ATTACHMENT A
June 15, 2021, Item #9Resolution No. 21-Page 2 shall be abandoned. A majority protest exists if, upon the conclusion of the hearing, written protests filed and not withdrawn, represent property owners owning more than 50 percent 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, 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 15th day of June, 2021 by the following vote, to wit: AYES: NOES: ABSENT: DISQUALIFIED: Steve Vaus, Mayor ATTEST: Vaida Pavolas, CMC, City Clerk 5 of24
June 15, 2021, Item #9City of Poway Landscape Maintenance Assessment District 87-1 2021/2022 ENGINEER'S ANNUAL LEVY REPORT INTENT MEETING: JUNE 15, 2021 PUBLIC HEARING: July 20, 2021 ATTACHMENT B Ww1LLDAN
June 15, 2021, Item #9AFFIDAVIT FOR THE ENGINEER'S ANNUAL LEVY REPORT Landscape Maintenance District 87-1 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 2021/2022, 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. 24th May Dated this _____ day of ______ , 2021. Willdan Financial Services Assessment Engineer On Behalf of the City of Poway By: d/1----Susanf;ernandez Project Manager, District Administration Services By: -------,,a=~~..tii::-IZ__:::--_ ----Tyrone Peter PE# C 81888 7 of24
June 15, 2021, Item #9TABLE OF CONTENTS l OVERVIEW ................................................................................................................. 1 A. INTRODUCTION ........................................................................................................ 1 B. COMPLIANCE WITH CURRENT LEGISLATION .................................................. 1 C. IMPROVEMENTS AUTHORIZED BY THE 1972 ACT ........................................... 2 ll DESCRIPTION OF THE DISTRICT ......................................................................... 3 A. BOUNDARIES OF THE DISTRICT .......................................................................... 3 B. DETACHMENT PROCEEDINGS ............................................................................. 3 C. DESCRIPTION OF THE DISTRICT IMPROVEMENTS ......................................... 4 D. PROPERTIES BENEFITING FROM IMPROVEMENTS ........................................ 4 Ill METHOD OF APPORTIONMENT ............................................................................ 5 A. GENERAL ................................................................................................................... 5 B. BENEFIT ANALYSIS ................................................................................................. 5 C. ASSESSMENT METHODOLOGY ............................................................................ 7 D. MAXIMUM ASSESSMENT RA TE ............................................................................ 8 IV. DISTRICT BUDGETS ................................................................................................ 8 A. DESCRIPTION OF BUDGET ITEMS ....................................................................... 8 B. BUDGET ...................................................................................................................... 9 APPENDIX A -DISTRICT ASSESSMENT DIAGRAM ................................................. 10 APPENDIX B -2021/2022 ASSESSMENT ROLL ........................................................ 12 8 of24
June 15, 2021, Item #9Ww1LLDAN l 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 87-1 ("District"), formed January 27, 1987. 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 XI 11 D 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 2021/2022. 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 2021/2022 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 2021/2022. 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 XI 11 D 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 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 9of24 2021/2022 City of Poway Landscape Maintenance District 87-1 Page 1
June 15, 2021, Item #9Ww1LLDAN (approved original assessment rates including any applicable annual escalation factor) from the procedural requirements of Article XIIID, Section 4. The provisions of Article XI 11 D 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 Ill 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. 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. 10 of 24 2021/2022 City of Poway Landscape Maintenance District 87-1 Page 2
June 15, 2021, Item #9~WILLDAN • 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. fl 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 Assessment Diagram (Appendix A) shows the District boundary and the general location of District improvements. B. DETACHMENT PROCEEDINGS In a separate proceeding undertaken by the City of Poway, on May 21, 2019 the City Council of the City of Poway conducted a public hearing and ballot proceeding for the formation of Landscape Maintenance District No. 19-1 ("LMD No. 19-1 ") pursuant to the provisions of the Landscape and Lighting Act of 1972 and in compliance with the substantive and procedural requirements of Article XIIID, section 4 of the California State Constitution and the Proposition 218 Omnibus Implementation Act. In conjunction with the approved formation of LMD No. 19-1 the City directly reorganized the previously established LMD No. 87-1 by detaching certain territory (parcels and improvements) from LMD No. 87-1 which are now incorporated in LMD No.19-1. As part of this formation and reorganization, the existing residential development areas within LMD No. 87-1 (residential territories) remain part of LMD No. 87-1. This residential territory includes the parcels comprising the Valencia Creek Condominiums located west of Pomerado Road and north of Scripps Poway Parkway; the single-family residential development area identified as Map 13542 -Poway TCT No. 88-04R and Map 13364 -Poway TCT No. 88-04R located west of Pomerado Road and south of Scripps Poway Parkway; and various residential properties located between Pomerado Road and Creek Road north of Beeler Canyon Road. The parcels within these residential territories now comprise all the parcels and improvements of LMD No. 87-1. These change proceedings were made to better address the estimated special benefit improvement costs and proportional special benefits received by each property associated with the various improvements being provided in the area. These changes did not increase the amount paid annually by any property owner remaining in LMD No. 87-1 and did not change the nature or extent of the improvements directly associated with the residential parcels in LMD No. 87-1, or the maintenance to be provided. The location and extent of the improvements and revised boundaries of LMD No. 87-1 are shown in the District Diagram contained in Appendix A of this Report. 11 of 24 2021/2022 City of Poway Landscape Maintenance District 87-1 Page 3
June 15, 2021, Item #9Ww1LLDAN C. DESCRIPTION OF THE DISTRICT IMPROVEMENTS Facilities to be maintained are defined as landscape improvements associated with annexed subdivisions that are adjacent to portions of Pomerado Road, Scripps Poway Parkway, and Treadmill Drive and the entryway side-panels on Stonemill Drive. These improvements include right-of-way and roadway medians. 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. Certain improvements listed above provide a shared benefit to properties in the District and other adjacent properties and are therefore equally funded by the District and other sources (Landscape Maintenance District 19-1 and/or the General Fund). For a full description of these shared improvements, please refer to the Landscape Maintenance District 19-1 Engineer's Report. Please also refer to the District Diagram in this report for the location of these shared improvements. 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. The District is within Service Level C for Fiscal Year 2021/2022. 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 rights-of-way 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. 12 of 24 2021/2022 City of Poway Landscape Maintenance District 87-1 Page 4
June 15, 2021, Item #9'\/N( WI LLD AN 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: 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 parcel's assessment may not exceed the reasonable cost of the proportional special benefit conferred on that parcel. Article XI 11 D 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 13 of 24 2021/2022 City of Poway Landscape Maintenance District 87-1 Page 5
June 15, 2021, Item #9'WWILLDAN 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 In reviewing the location and extent of the specific landscaped areas and improvements to be funded by District assessments and the proximity and relationship to properties to be assessed, it is evident these improvements have been installed as part of the development of properties within the District or are improvements that would otherwise be shared by and/or required for development of those properties. Although the District improvements are located on public streets or public areas that are typically visible and/or accessible to the general public, it is evident that the ongoing maintenance of these improvements are only necessary for the appearance and advantage of the properties within the District that are directly associated with these improvements (particularly the level of maintenance and servicing) are not required nor associated with any properties outside the District. It is also evident that: (1) the maintenance of these improvements and the level of maintenance provided, has a direct and particular advantage (i.e., special benefit) only to those properties in close proximity to the improvements, including those developments and properties that are directly accessed from the streets where the improvements are located; and (2) such maintenance beyond that which is required to ensure the safety and protection of the general public and property in general, limits any indirect or incidental benefit that the public at large or properties outside the District receive from the improvements. In the absence of a special funding district, these types of improvements would not have been installed by the City and the City's maintenance of these improvements would, for the most part, be limited to tree management services necessary to ensure public safety and protection of property, weed abatement, rodent control, and erosion control services for the various landscape areas that are provided elsewhere in the City. This basic or baseline level of service would typically provide for periodic servicing of these areas on an as-needed basis. This baseline level of service, which is provided elsewhere in the City, would provide for public safety and essential property protection to avoid negative impacts on adjacent roadways and vehicles traveling on those roadways and potential property damage. However, this baseline 14 of 24 2021/2022 City of Poway Landscape Maintenance District 87-1 Page 6
June 15, 2021, Item #9Ww1LLDAN level of service results in a far less visually pleasing environment than is created with the enhanced levels of services associated with the regular landscape maintenance that can be provided through the District assessments. On average, the cost to provide this baseline level of service for the District's streetscape landscape areas is estimated to be approximately $1,163 per acre (approximately $0.0267 per square foot) and approximately $696 per acre (approximately $0.0160 per square foot) for non-streetscape landscape areas, including a five percent (5%) cost factor for City overhead and administration. This represents an increase of 1.67% compared to the prior year based on the average of the San Diego-Carlsbad Consumer Price Indexes, All Urban Consumers and Urban Wage Earners and Clerical Workers. 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. In-Lieu Assessments Under provisions of City policy, parcels may contribute in-lieu assessments by providing equivalent maintenance services for District improvements within public rights-of-way or public easements immediately adjacent to their lands. No new parcels within the District are scheduled to contribute in lieu assessments in Fiscal Year 2021/2022. Non-benefiting Parcels All public and private streets, avenues, lanes, roads, drives, courts, alleys, all public easements and rights-of-way, 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 2021/2022 proposed assessment for each parcel were calculated and are shown in the Assessment Roll (Appendix B). The calculated Fiscal Year 2021/2022 assessments for the residential parcels are proposed to remain at the Fiscal Year 2020/2021 assessment rate of $210.68 per benefit unit. 15 of 24 2021/2022 City of Poway Landscape Maintenance District 87-1 Page 7
June 15, 2021, Item #9f/MWILLDAN D. MAXIMUM ASSESSMENT RATE The approved maximum assessment rates for the District were established and have remained at $210.68 per benefit unit per year for Rolling Hills Estates, Valencia, Kimball, Aviano/Bothwell, Rexford, and Dynasty Development. The District currently has no approved escalation factor for increasing the maximum assessment rates. 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. IV. 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 2021/2022, commencing July 1, 2021 and ending June 30, 2022, 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. 16 of 24 2021/2022 City of Poway Landscape Maintenance District 87-1 Page 8
June 15, 2021, Item #9Ww1LLDAN 8. BUDGET 17 of 24 2021/2022 Fiscal Year Fiscal Year Fiscal Year BUDGET ITEMS 2019/2020111 2020/2021121 2021/2022131 EXPENDITURES: Maintenance $27,151 $31.174 $31,641 Water/power 12.508 20.597 16.510 Administrationl4) 10.070 9 775 9.261 Total Expenditures $49,729 $61,546 $57,412 REVENUES City General Benefit Contribution $9.891 $10.105 $10.274 Assessment Revenue 44,157 41.083 41.083 Interest Revenue 1,657 1 300 1.300 Grant Revenue 0 0 0 Capital Project Closeout 0 0 0 Miscellaneous 0 0 0 Total Revenues $55,705 $52,488 $52,657 DISTRICT STATISTICS: Total Number of Parcels 210 210 210 Total Parcels Levied 195 195 195 Rate per EBU (Equivalent Benefit Units) Residential $210.68 OPERA TING RESERVE Beginning Reserve Balance $68.694 $24 865 $30,773 Transfers In/Out (CIP) (49,805) 14 966 2.688 Reserve Fund Activity 5 976 (9,058) (4,755) Estimated Ending Reserve Balance $24,865 $30,773 $28,706 CAPITAL IMPROVEMENT RESERVE CIP Fund Balance $2,791 $52.596 $37,630 CIP Transfers In/Out (Operating Reserve) 49.805 (14.966) (2 688) CIP Projects 0 0 0 Estimated Ending CIP Reserve Balance $52,596 $37,630 S34,942 (1) Actual Budget (2) Estimated Budget (3) Proposed Budget (4) Includes cost allocation City staff support services. City of Poway Landscape Maintenance District 87-1 Page 9
June 15, 2021, Item #9~WILLDAN APPENDIX A -DISTRICT ASSESSMENT DIAGRAM A District Diagram has been prepared for the District in the format required by the 1972 Act, a copy of which is provided on the following page and is also available for inspection at the Special Districts Office of the Public Works Department, during normal business hours. 18 of 24 2021/2022 City of Poway Landscape Maintenance District 87-1 Page 10
June 15, 2021, Item #919 of 24 2021/2022 i i i i ) I / !_ i ! Ww1LLDAN Legend -LMD 87-1 Improvements -LLD 19-1 Shared Improvements -Genfund Shared Improvements \. LMD 87-1 parcels [_-~_-J City Boundary Parcels City Of Poway: LMD No 87-1 Revised District Diagram City of Poway Landscape Maintenance District 87-1 Page 11
June 15, 2021, Item #9Ww1LLDAN APPENDIX B -2021/2022 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 2021/2022 Assessment Roll" (Appendix B). 20 of 24 2021/2022 City of Poway Landscape Maintenance District 87-1 Page 12
June 15, 2021, Item #9Willdan 21 of 24 APPENDIX B City of Poway Landscape Maintenance District 87-1 Fiscal Year 2021/2022 Preliminary Roll Assessor Parcel Dwelling Benefit L d A Number Units Units an use ssessment 317-830-05-02 317-830-05-03 317-830-05-04 317-830-05-05 317-830-05-06 317-830-05-07 317-830-05-08 317-830-05-09 317-830-05-10 317-830-05-11 317-830-05-12 317-830-05-13 317-830-05-14 317-830-05-15 317-830-05-16 317-830-05-17 317-830-05-18 317-830-05-19 317-830-05-20 317-830-06-01 317-830-06-02 317-830-06-03 317-830-06-04 317-830-06-05 317-830-06-06 317-830-06-07 317-830-06-08 317-830-06-09 317-830-06-10 317-830-06-11 317-830-06-12 317-830-06-13 317-830-06-14 317-830-07-01 317-830-07-02 317-830-07-03 317-830-07-04 317-830-07-05 317-830-07-06 317-830-07-07 317-830-07-08 317-830-07-09 317-830-07-10 317-830-07-11 317-830-07-12 317-830-07-13 317-830-07-14 317-830-07-15 ------1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 RESIDENTIAL RESIDENTIAL RESIDENTIAL RESIDENTIAL RESIDENTIAL RESIDENTIAL RESIDENTIAL RESIDENTIAL RESIDENTIAL RESIDENTIAL RESIDENTIAL RESIDENTIAL RESIDENTIAL RESIDENTIAL RESIDENTIAL RESIDENTIAL RESIDENTIAL RESIDENTIAL RESIDENTIAL RESIDENTIAL RESIDENTIAL RESIDENTIAL RESIDENTIAL RESIDENTIAL RESIDENTIAL RESIDENTIAL RESIDENTIAL RESIDENTIAL RESIDENTIAL RESIDENTIAL RESIDENTIAL RESIDENTIAL RESIDENTIAL RESIDENTIAL RESIDENTIAL RESIDENTIAL RESIDENTIAL RESIDENTIAL RESIDENTIAL RESIDENTIAL RESIDENTIAL RESIDENTIAL RESIDENTIAL RESIDENTIAL RESIDENTIAL RESIDENTIAL RESIDENTIAL RESIDENTIAL LMD 87-1 Preliminary Roll 210.68 210.68 210.68 210.68 210.68 210.68 210.68 210.68 210.68 210.68 210.68 210.68 210.68 210.68 210.68 210.68 210.68 210.68 210.68 210.68 210.68 210.68 210.68 210.68 210.68 210.68 210.68 210.68 210.68 210.68 210.68 210.68 210.68 210.68 210.68 210.68 210.68 210.68 210.68 210.68 210.68 210.68 210.68 210.68 210.68 210.68 210.68 210.68 Page 1 of 4
June 15, 2021, Item #9Willdan 22 of 24 Assessor Parcel Dwelling Benefit L d A Number Units Units an use ssessment 317-830-07-16 1.0 RESIDENTIAL 210.68 317-830-08-01 1.0 RESIDENTIAL 210.68 317-830-08-02 1.0 RESIDENTIAL 210.68 317-830-08-03 1.0 RESIDENTIAL 210.68 317-830-08-04 1.0 RESIDENTIAL 210.68 317-830-08-05 1.0 RESIDENTIAL 210.68 317-830-08-06 1.0 RESIDENTIAL 210.68 317-830-08-07 1.0 RESIDENTIAL 210.68 317-830-08-08 1.0 RESIDENTIAL 210.68 317-830-08-09 1.0 RESIDENTIAL 210.68 317-830-08-10 1.0 RESIDENTIAL 210.68 320-020-38-00 1.0 RESIDENTIAL 210.68 320-020-39-00 1.0 RESIDENTIAL 210.68 320-020-42-00 1 1.0 RESIDENTIAL 210.68 320-020-45-00 1.0 RESIDENTIAL 210.68 320-020-46-00 1.0 RESIDENTIAL 210.68 320-020-48-00 1.0 RESIDENTIAL 210.68 320-200-01-00 1.0 RESIDENTIAL 210.68 320-200-02-00 1.0 RESIDENTIAL 210.68 320-200-03-00 1.0 RESIDENTIAL 210.68 320-200-04-00 1.0 RESIDENTIAL 210.68 320-200-05-00 1 1.0 RESIDENTIAL 210.68 320-200-06-00 1 1.0 RESIDENTIAL 210.68 320-200-07-00 1.0 RESIDENTIAL 210.68 320-200-08-00 1.0 RESIDENTIAL 210.68 320-200-09-00 1.0 RESIDENTIAL 210.68 320-200-10-00 1.0 RESIDENTIAL 210.68 320-200-11-00 1.0 RESIDENTIAL 210.68 320-200-12-00 1.0 RESIDENTIAL 210.68 320-200-13-00 1.0 RESIDENTIAL 210.68 320-200-14-00 1.0 RESIDENTIAL 210.68 320-200-15-00 1.0 RESIDENTIAL 210.68 320-200-16-00 1.0 RESIDENTIAL 210.68 320-200-17-00 1.0 RESIDENTIAL 210.68 320-200-18-00 1.0 RESIDENTIAL 210.68 320-200-19-00 1.0 RESIDENTIAL 210.68 320-200-20-00 1.0 RESIDENTIAL 210.68 320-200-21-00 1.0 RESIDENTIAL 210.68 320-200-22-00 1.0 RESIDENTIAL 210.68 320-200-23-00 1.0 RESIDENTIAL 210.68 320-200-24-00 1 1.0 RESIDENTIAL 210.68 320-200-25-00 1.0 RESIDENTIAL 210.68 320-200-26-00 1.0 RESIDENTIAL 210.68 320-200-27-00 1.0 RESIDENTIAL 210.68 320-200-28-00 1.0 RESIDENTIAL 210.68 320-200-29-00 1.0 RESIDENTIAL 210.68 320-200-30-00 1.0 RESIDENTIAL 210.68 320-200-31-00 1.0 RESIDENTIAL 210.68 320-200-32-00 1.0 RESIDENTIAL 210.68 320-200-33-00 1.0 RESIDENTIAL 210.68 320-200-34-00 1.0 RESIDENTIAL 210.68 320-200-35-00 1.0 RESIDENTIAL 210.68 320-200-36-00 1.0 RESIDENTIAL 210.68 320-200-37-00 1.0 RESIDENTIAL 210.68 320-200-38-00 1.0 RESIDENTIAL 210.68 320-200-39-00 1.0 RESIDENTIAL 210.68 LMD 87-1 Preliminary Roll Page 2 of 4
June 15, 2021, Item #9Willdan 23 of 24 Assessor Parcel Dwelling Benefit L d A Number Units Units an use ssessment 320-200-40-00 1.0 RESIDENTIAL 210.68 320-200-41-00 1 1.0 RESIDENTIAL 210.68 320-200-42-00 1.0 RESIDENTIAL 210.68 320-201-01-00 1.0 RESIDENTIAL 210.68 320-201-02-00 1.0 RESIDENTIAL 210.68 320-201-03-00 1.0 RESIDENTIAL 210.68 320-201-04-00 1.0 RESIDENTIAL 210.68 320-201-05-00 1.0 RESIDENTIAL 210.68 320-201-06-00 1.0 RESIDENTIAL 210.68 320-201-07-00 1 1.0 RESIDENTIAL 210.68 320-201-08-00 1.0 RESIDENTIAL 210.68 320-201-09-00 1.0 RESIDENTIAL 210.68 320-201-10-00 1.0 RESIDENTIAL 210.68 320-201-11-00 1.0 RESIDENTIAL 210.68 320-201-12-00 1.0 RESIDENTIAL 210.68 320-201-13-00 1.0 RESIDENTIAL 210.68 320-201-14-00 1.0 RESIDENTIAL 210.68 320-201-15-00 1.0 RESIDENTIAL 210.68 320-201-16-00 1.0 RESIDENTIAL 210.68 320-201-17-00 1.0 RESIDENTIAL 210.68 320-201-18-00 1.0 RESIDENTIAL 210.68 320-201-19-00 1.0 RESIDENTIAL 210.68 320-201-20-00 1.0 RESIDENTIAL 210.68 320-201-21-00 1.0 RESIDENTIAL 210.68 320-201-22-00 1.0 RESIDENTIAL 210.68 320-210-01-00 1.0 RESIDENTIAL 210.68 320-210-02-00 1.0 RESIDENTIAL 210.68 320-210-03-00 1.0 RESIDENTIAL 210.68 320-210-04-00 1.0 RESIDENTIAL 210.68 320-210-05-00 1.0 RESIDENTIAL 210.68 320-210-06-00 1.0 RESIDENTIAL 210.68 320-210-07-00 1.0 RESIDENTIAL 210.68 320-210-08-00 1.0 RESIDENTIAL 210.68 320-210-09-00 1.0 RESIDENTIAL 210.68 320-210-10-00 1.0 RESIDENTIAL 210.68 320-210-11-00 1.0 RESIDENTIAL 210.68 320-210-12-00 1.0 RESIDENTIAL 210.68 320-210-13-00 1 1.0 RESIDENTIAL 210.68 320-210-14-00 1 1.0 RESIDENTIAL 210.68 320-210-15-00 1.0 RESIDENTIAL 210.68 320-210-16-00 1.0 RESIDENTIAL 210.68 320-210-17-00 1.0 RESIDENTIAL 210.68 320-210-18-00 1.0 RESIDENTIAL 210.68 320-210-19-00 1.0 RESIDENTIAL 210.68 320-210-20-00 1.0 RESIDENTIAL 210.68 320-211-01-00 1.0 RESIDENTIAL 210.68 320-211-02-00 1.0 RESIDENTIAL 210.68 320-211-03-00 1.0 RESIDENTIAL 210.68 320-211-04-00 1.0 RESIDENTIAL 210.68 320-211-05-00 1.0 RESIDENTIAL 210.68 320-211-06-00 1.0 RESIDENTIAL 210.68 320-211-07-00 1.0 RESIDENTIAL 210.68 320-211-08-00 1.0 RESIDENTIAL 210.68 320-211-09-00 1.0 RESIDENTIAL 210.68 320-211-10-00 1.0 RESIDENTIAL 210.68 320-211-11-00 1.0 RESIDENTIAL 210.68 LMD 87-1 Preliminary Roll Page 3 of 4
June 15, 2021, Item #9Willdan 24 of 24 Assessor Parcel Dwelling Benefit L d A Number Units Units an use ssessment 320-211-12-00 1.0 RESIDENTIAL 210.68 320-211-13-00 1.0 RESIDENTIAL 210.68 320-211-14-00 1.0 RESIDENTIAL 210.68 320-211-15-00 1.0 RESIDENTIAL 210.68 320-211-16-00 1.0 RESIDENTIAL 210.68 320-211-17-00 1.0 RESIDENTIAL 210.68 320-211-18-00 1.0 RESIDENTIAL 210.68 320-212-01-00 1.0 RESIDENTIAL 210.68 320-212-02-00 1.0 RESIDENTIAL 210.68 320-212-03-00 1.0 RESIDENTIAL 210.68 320-212-04-00 1.0 RESIDENTIAL 210.68 320-212-05-00 1.0 RESIDENTIAL 210.68 320-212-06-00 1.0 RESIDENTIAL 210.68 320-212-07-00 1.0 RESIDENTIAL 210.68 320-212-08-00 1.0 RESIDENTIAL 210.68 320-212-09-00 1.0 RESIDENTIAL 210.68 320-212-10-00 1.0 RESIDENTIAL 210.68 320-212-11-00 1.0 RESIDENTIAL 210.68 320-212-12-00 1.0 RESIDENTIAL 210.68 320-212-13-00 1 1.0 RESIDENTIAL 210.68 320-212-14-00 1.0 RESIDENTIAL 210.68 320-212-15-00 1 1.0 RESIDENTIAL 210.68 320-212-16-00 0 1.0 RESIDENTIAL 210.68 320-212-17-00 1.0 RESIDENTIAL 210.68 320-212-18-00 1 1.0 RESIDENTIAL 210.68 320-230-01-00 0 1.0 RESIDENTIAL 210.68 320-230-02-00 1.0 RESIDENTIAL 210.68 320-230-03-00 1.0 RESIDENTIAL 210.68 320-230-04-00 1.0 RESIDENTIAL 210.68 320-230-05-00 1.0 RESIDENTIAL 210.68 320-230-06-00 1.0 RESIDENTIAL 210.68 320-230-07-00 1.0 RESIDENTIAL 210.68 320-230-10-00 1.0 RESIDENTIAL 210.68 320-230-14-00 1.0 RESIDENTIAL 210.68 TOTALS 195.0 $41,082.60 TOTAL PARCEL COUNT 195 LMD 87-1 Preliminary Roll Page 4 of 4