Res 00-034RESOLUTION NO. 00- 034
A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF POWAY, CALIFORNIA
APPROVING NEW AND AMENDED POLICIES
FOR THE LANDSCAPE MAINTENANCE DISTRICTS
AND RESCINDING RESOLUTION NO. 98-080
WHEREAS, in order to comply with the Landscape and Lighting Act of 1972,
Articles XIIIC and Article Xlll D of the California Constitution (Proposition 218), and the
Proposition 218 Omnibus Implementation Act (California Senate Bill 919) (herein
collectively referred to as "Assessment Law"), it is necessary to implement specific
policies; and
WHEREAS, on November 5, 1996, the California electorate approved
Proposition 218, the self titled "Right to Vote on Taxes Act," which adds Articles XIII C
and XlII D to the California Constitution and changes government finance law; and
WHEREAS, the California legislature passed Senate Bill 919, the Proposition
218 Omnibus Implementation Act, which became law in January 1998, clarifying the
implementation of Proposition 218 regarding existing law; and
WHEREAS, the City of Poway retained a consultant in October 1997 to assist
City staff in reviewing existing Landscape Maintenance District (LMD) policies for
compliance with the changes to Assessment Law, and findings and recommendations
to revise existing policies were presented to the City Council on the City of Poway on
November 13, 1997, March 12, 1998, March 24, 1998; April 21, 1998, and July 28,
1998; and
WHEREAS, the City of Poway desires to amend the Landscape Maintenance
District policy, adopted by Council on July 28, 1998, to clarify and expand existing
policy; and
WHEREAS, Resolution No. 98-080 is hereby rescinded.
NOW, THEREFORE, the City Council of the City of Poway does hereby find,
resolve, and determine the Landscape Maintenance Districts' policies, under
Assessment Law, as follows:
Section 1: LANDSCAPE MAINTENANCE DISTRICT ANNEXATION
All new residential and new non-residential development which, as a
condition of development, and having been certified by the Director of
Public Services, or his/her representative, as receiving special benefit, are
required to:
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finance, construct, install and/or establish landscape improvements (a
permanent public improvement) within public rights-of-way or public
easements, and
finance maintenance of said landscape improvements under provisions of
the Landscape and Lighting Act of 1972, and
3. receive "special benefit" (as defined by Assessment Law and herein)
shall be annexed through owner petition into the appropriate LMD.
All new residential and new non-residential development which:
receive access through subdivisions or developments which contain
landscape improvements maintained by an LMD, or
are immediately adjacent to subdivisions or developments which contain
landscape improvements maintained by an LMD, and
3. receive special benefit (as defined by Assessment Law and herein)
shall be certified by the Director of Public Services, or his/her representative, as
receiving special benefit and annexed into the appropriate LMD by owner
petition as a condition of development.
The City may, at its discretion, allow residential or non-residential parcels which
have been annexed into an LMD, to contribute in-lieu assessments by providing
equivalent maintenance services for the LMD improvements within public rights-
of-way or public easements immediately adjacent to their parcel.
Residential parcels shall form a homeowners' association under
the appropriate California Code Section, and enter into a
maintenance performance contract with the City.
Non-residential parcels shall enter into a maintenance performance
contract with the City.
In the event of default of performance by parcels bound by the terms of
the maintenance performance contract, the City shall be permitted to
terminate acceptance of in-lieu assessments and levy assessments on
said parcels in proportion to the special benefit.
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The City may at its discretion allow parcels owned by a public agency,
which have been annexed into an LMD, to contribute in-lieu assessments
by providing equivalent maintenance services for the LMD improvements
within public rights-of-way or public easements immediately adjacent to
their parcel.
Section 2: CITY GENERAL BENEFIT CONTRIBUTION
Assessment Law mandates that the City can assess for special benefit only and
the City shall separate general benefit from special benefit. General benefit is
service provided to the public-at-large. Special benefit is service provided a level
greater than the service provided to the public-at-large.
The City funds maintenance of certain landscaped medians and rights-of-
way from the general fund. 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 rights-of-way, calculated on
a per square foot basis. The City shall make a general benefit
contribution to an LMD based on the City's average expenditure from the
general fund and the square footage of improvements within the LMD.
The City shall conduct an audit from time to time to determine the average
expenditure from the general fund for the landscape maintenance of
landscaped medians, public rights-of-way, or public easements,
calculated on a per square foot basis, not to exceed the width of facilities
maintained by the City.
Landscaped Medians: (square footage) x (average general fund
maintenance cost per square foot) = City's General Benefit Contribution
Landscaped Rights-of-Way: (square footage) x (average general fund
maintenance cost per square foot) = City's General Benefit Contribution
Landscaped Rights-of-Way with Soundwall: (square footage) x (average
general fund maintenance cost per square foot) = City's General Benefit
Contribution
The City shall have the option how it will make general benefit
contributions to the Districts by either:
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Providing irrigation water to an LMD to be used in the maintenance
of LMD improvements, or
2. Paying directly to the LMD District from the General Fund
Section 3: LANDSCAPE MAINTENANCE DISTRICT ASSESSMENTS
Assessments shall be calculated based on maintenance and operation
costs divided by the number of District (Zone) benefit units:
Maintenance/Operation Costs
# of Total District Benefit Units
Assessment per Benefit Unit
All residential subdivisions shall be assessed proportionally to special
benefit received based on one (1) benefit unit per residential dwelling unit.
All non-residential development shall be assessed proportionally 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.
Under Assessment Law, any proposed increase in assessments, not
previously approved by unanimous consent of all property owners shall be
placed for approval before the property owners by a mailed ballot and a
public hearing process. A majority of ballots received must be affirmative
for the City Council to confirm and levy the increased assessments.
Section 4: CONSTRUCTION AND MAINTENANCE
The LMDs are responsible for the reconstruction, replacement,
maintenance, and renovation of designated improvements.
The LMDs are not responsible for the financing, construction, or
installation of City or Redevelopment Agency improvements.
The LMDs are not responsible for the construction of any new capital
improvement projects.
The LMDs are not responsible for the construction, reconstruction,
replacement, maintenance, or renovation of trails and parks_which are of
benefit to the entire City and do not constitute special benefit.
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Section 5: LOANS
Funds may be borrowed by an LMD in order to offset deficits incurred during any
fiscal year per Street and Highways Code Section 22657. This loan will be paid
back, with interest, at the prevailing interest rate, and shall be charged against
the borrowing LMD assessments.
Section 6: LANDSCAPE MAINTENANCE DISTRICT ASSESSMENT STABILIZATION
During the period of time after property annexation and prior to the acceptance
of maintenance improvements, the assessments received from all properties that
contain LMD improvements shall be placed in a reserve fund. Upon the
acceptance of improvements, the assessments received from that development
shall be included in the operating revenue for the LMD. The reserve funds can
be used to offset assessments, new LMD improvements, renovations, and/or
placed within an interest bearing account, at the discretion of the City.
Section 7: INCIDENTAL EXPENDITURES
Incidental expenditures, (in accordance with the Streets and Highways Code
Section 22526), include the following:
The costs of preparation of the Engineer's Report, including plans,
specifications, estimates, diagrams, and assessments;
The costs of printing, advertising, and the giving of published, posted,
mailed notices, mailed ballots, and the tallying of ballots;
C. Compensation payable to the County for the collection of assessments;
Compensation of any engineer or attorney employed to render services in
LMD proceedings;
Any other expenses incidental to the construction or installation of the
improvements or to the maintenance or servicing thereof.
Section 8: BALLOT TALLYING
Under current law, ballots received by the Office of the City Clerk during the 45-
day public notice, ballot, and hearing proceedings are public information.
From time to time, interim tallies of the weighted percentage of votes
approving and votes opposing the increase of assessments shall be made
public information.
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At the conclusion of the public hearing, the final tally of the weighted
percentage of votes approving and votes opposing the increase of
assessments shall be announced.
Section 9: RESPONSE TO MAJORITY PROTEST OF INCREASED ASSESSMENTS
In the event of a majority protest against the increase of assessments,
assessments will be levied at the maximum amount authorized for
previous years in accordance with Assessment Law.
In the event of a majority protest against the increase of assessments, the
level of services provided by the District shall be reduced to the level of
revenue received by the District.
Upon receipt of a petition of twenty-five percent (25%) of the property
owners within a District which received a majority protest against the
increase of assessments, the City will initiate a public notice, ballot, and
public hearing proceeding to increase assessments. The cost of said
proceeding shall be considered an incidental cost and shall be charged to
the District.
PASSED, ADOPTED, AND APPROVED by the City Council of the City of Poway,
California, at a regular meeting this 2nd day of May 2000.
ATTEST:
~-'~i~,"nne Peoples, City ~l~r~, [ -
Don Higginson, De~y Mayor
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Page 7
STATE OF CALIFORNIA )
)SS.
COUNTY OF SAN DIEGO )
I, Lori Anne Peoples, City Clerk of the City of Poway, do hereby certify under
penalty of perjury that the foregoing Resolution No. 00- 034 was duly adopted by the
City Council at a meeting of said City Council held on the 2nd day of May 2000, and
that it was so adopted by the following vote:
AYES: EMERY, GOLDBY, HIGGINSON
NOES: NONE
ABSTAIN: NONE
ABSENT: REXFORD, CAFAGNA
~'6'ri~/~n ne City Clerl~
City of Poway