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HomeMy WebLinkAboutAGENDA REPORT 1999 0616 CC REG ITEM 09FTO: FROM DATE ITEM �' F• CITY OF MW ORPARK, CALIFOR ZIA City Council Meeting of io -/ /o' q ACTION:LLidepted,see�.n.'v,9, 1643 CITY OF MOORPARK CITY COUNCIL AGENDA REPORT BY: W • s ��l C�l�`✓t C �t'1riC:; t I'c'(' . /Y)� l/ 2 /Pl l!� r7l The Honorable City Council Mary K. Lindley, Director of Community Services; 61`-' June 10, 1999 (CC Meeting of June 16, 1999)��� SUBJECT: Consider Approval of Resolution No. 99 -, Approving the Assessment Engineer's Report, the Park—s and Recreation Maintenance and Improvement Assessment District Mail Ballot, and Date for Public Hearing SUMMARY On April 14, the City Council adopted Resolution No. 99 -1597 which stated the Council's intent to levy a park and recreation maintenance and improvement assessment, preliminarily approved the Engineer's Report, and set a Public Hearing date. On June 16, the Council will be asked to open the Public Hearing and receive testimony, close the Public Hearing and direct that the ballots be tabulated. In the event the number of weighted votes in support of the assessment exceed the number of weighted votes in opposition (protest), the Council is being asked to adopt Resolution No. 99- (Attachment A), approving the Engineer's Report and ordering the levy of an assessment for FY 1999/00, consistent with the Engineer's Report. DISCUSSION In conformance with Proposition 218, Moorpark property owners were sent ballots on which to indicate support or opposition to the formation of an assessment district for parks and recreation maintenance and improvements. Ballots were mailed on April 30, 1999. Property owners were given at least 45 days, and up until the close of the public hearing, to indicate their position and return \ \MOR_PRI_SERV \home folders \MLindley \Assessment \park assessmt adoption ccagd II.doc 000230 Park Maintenance Assess District Adoption Page 2 their ballot. Additionally, Proposition 218 requires the City to hold a public hearing to receive testimony on the proposed assessment and to include the public hearing notice with the ballot. The City fulfilled this requirement, and all property owners within the proposed assessment district boundaries received a public hearing notice, with a Hearing date of June 16, along with their ballot. The public hearing was also noticed in the newspaper. Based on the Council's past action, the proposed Assessment District includes all existing 14 City parks, including Villa Campesina Park. The maintenance of Villa Campesina Park is currently funded as a Zone of Benefit(Zone 13)in AD 84.2, in which the property owners are assessed $60 annually. If the park assessment is levied, the current assessment for Zone 13 will be discontinued. Additionally, the proposed park planned for the Specific Plan 92 -1 (Carlsberg) will also be included within the park assessment budget, once it has been constructed and the developer's maintenance responsibility has expired. The City Council is also being asked to approve the final Engineer's Report (Attachment B). The Report addresses the proposed FY 1999/00 Park Maintenance and Improvement Budget. Total expenditures are approximately $866,914. The Engineer's Report also identifies the estimated revenue to be generated by the assessment (approximately $447,184) if the assessment rate is levied as proposed. Additionally, the report identifies the City's contribution, which includes a portion of the expenditures associated with "special" benefits and all expenditures associated with "general" benefits. This proposed contribution equals approximately 48 percent of the total budget and would be funded from the General Fund and the Park Improvement Fund. This is recommended in an effort to keep the assessment rate at about the same level as the former Assessment District rate. Under Proposition 218, the City can only assess property owners for a portion of the maintenance and improvement of parks that generates a "special" benefit. The portion determined to generate a "general" benefit must be funded from sources other than Assessment District revenue. Based on the Engineer's finding that 25 percent of the benefits conferred by the maintenance and improvement of parks is "general" in nature, and 75 percent is %special ", the potential amount of the proposed budget that could 000231 Park Assessment District Page 3 legally be assessed to property owners under Proposition 218 is $650,185. If property owners were fully assessed for this amount, the SFE would be approximately $56.70. Historically, the City has contributed funds to park maintenance activities, as was done with the former Park Assessment District, in an effort to minimize the property assessment amount. Prior to disbanding the Park Assessment District in June 1998, property owners were paying a SFE rate of $41.16. The rate contained in the Engineer's Report, and previously approved by the Council, is $39.00 per SFE. If levied, this rate would generate approximately $447,184. Under this proposal, the City would cover the remaining portion of the budget associated with the "special" benefit, approximately $203,001, in addition to the "general" benefit portion of $216,729. This would make the City's total contribution $419,730. The park maintenance budget included in the draft FY 1999/00 City Budget previously presented to the City Council, was developed consistent with this approach. The April 14, 1999, Agenda Report (Attachment C) provides more detailed information on the proposed assessment and the methodology used to spread the assessment to the various property types. The Engineer's Report also includes an annual adjustment to the assessment amount tied to the Consumer Price Index (CPI) as of December of each year. The proposed adjustment would be capped not to exceed 3 percent annually. RECOM-ENDATION (Roll Call Vote) Staff recommends that the City Council: 1. Open the Public Hearing, receive testimony, and close the Hearing; 2. Direct that the ballots be counted; and 3. If the number of votes (weighted) in support of the assessment exceed the number of votes (weighted) in opposition, adopt Resolution No. 99- approving the Engineer's Report, confirm the district boundaries, and order the levy of the assessment for FY 1999/00. Attachments: A, B, C M: \MLindley \Assessment \engineer report agd.doc 000232 RESOLUTION NO. 99- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MOORPARK, CALIFORNIA, APPROVING ENGINEER'S REPORT FOR THE FORMATION OF THE PARK AND RECREATION MAINTENANCE AND IMPROVEMENT ASSESSMENT DISTRICT, CONFIRMING DISTRICT DIAGRAM AND ASSESSMENT AND ORDERING LEVY OF ASSESSMENT FOR FISCAL YEAR 1999 -00 WHEREAS, by Resolution No. 99 -1566, the City Council ordered the preparation of an Engineer's Report initiating proceedings for the formation of a Parks and Recreation Maintenance and Improvement District; and WHEREAS, by Resolution No. 99 -1597 the City Council approved the Engineer's Report for said District and set a date for a Public Hearing; and WHEREAS, the Council designated Shilts Consultants, Inc. as Engineer of Work and ordered said Engineer to make and file an Engineer's Report for a proposed Parks and Recreation Maintenance and Improvement District; and WHEREAS, the report was duly made and filed with the Council and duly considered by this Council and found to be sufficient in every particular, whereupon it was determined that the report should stand as the Engineer's Report for all subsequent proceedings; and WHEREAS, pursuant to Article XIIID and Government Code §54654.6, a joint notice and mail ballot was duly and regularly given, including the notice that this Council would be conducting a public hearing on June 16, 1999, on the question of the levy of the proposed assessment; and WHEREAS, on June 16, 1999, at the hour of 7:00 p.m. at the City of Moorpark, City Council Chambers, 799 Moorpark Avenue, Moorpark, California, 93021, the public hearing was duly and regularly held as noticed, and all persons interested and desiring to be heard were given an opportunity to speak and be heard, and all matters and things pertaining to the levy were fully heard and considered by this Council, and all oral statements and all written protests or communications were duly considered; and 000233 Resolution No. 99- Page i WHEREAS, at the public hearing the Council tabulated the mail ballots and found that a majority protest as defined by Article XIIID did not exist, and this Council thereby acquired jurisdiction to order the levy and the confirmation of the diagram and assessment prepared by and made a part of the Engineer's Report to pay the costs and expenses thereof. NOW, THEREFORE, CALIFORNIA, DOES RESC SECTION 1. The of property within assessment exceeded assessment. THE CITY COUNCIL OF THE CITY OF MOORPARK, 1VE AS FOLLOWS: assessment ballots submitted by the owners the assessment district in favor of the those submitted in opposition to the SECTION 2. The public interest, convenience and necessity require that the levy be made. SECTION 3. The Parks and Recreation Maintenance and Improvement District benefited by the improvements and assessed to pay the costs and expenses thereof, and the exterior boundaries thereof, are as shown by a map thereof filed in the office of the Council, which map is made a part hereof by reference thereto. SECTION 4. The Engineer's Report as a whole and each part thereof, to wit: (a) the Engineer's estimate of the itemized and total costs and expenses of maintaining the improvements and of the incidental expenses in connection therewith; (b) the diagram showing the assessment district, plans and specifications for the improvements to be maintained and the boundaries and dimensions of the respective lots and parcels of land within the Parks and Recreation Maintenance and Improvement District; and (c) the assessment of the total amount of the cost and expenses of the proposed maintenance of the 000234 Resolution No. 99- Page 3 improvements upon the several lots and parcels of land in the Parks and Recreation Maintenance and Improvement District in proportion to the estimated special benefits to be received by such lots and parcels, respectively, from the maintenance, and of the expenses incidental thereto, are finally approved and confirmed. SECTION 5. Final adoption and approval of the Engineer's Report as a whole, and of the plans and specifications, estimate of the costs and expenses, the diagram and the assessment, as contained in the report as hereinabove determined and ordered, is intended to and shall refer and apply to the report, or any portion thereof as amended, modified, or revised or corrected by, or pursuant to and in accordance with, any resolution or order, if any, heretofore duly adopted or made by this Council. SECTION 6. The assessment to pay the costs and expenses of the maintenance of the improvements for fiscal year 1999 -00 is hereby levied. SECTION 7. Based on the oral and documentary evidence, including the Engineer's Report, offered and received at the hearing, this Council expressly finds and determines (a) that each of the several lots and parcels of land will be specially benefited by the maintenance of the improvements at least in the amount if not more than the amount, of the assessment apportioned against the lots and parcels of land, respectively, and (b) that there is substantial evidence to support, and the weight of the evidence preponderates in favor of, the aforesaid finding and determination as to special benefits. SECTION 8. Immediately upon the adoption of this resolution, but in no event later than the second Monday in August following such adoption, the Council shall file a certified copy of the diagram and assessment and a certified copy of this resolution with the Auditor of the County of Ventura. Upon such filing, the County Auditor shall enter on the County assessment roll opposite each lot or parcel of land the amount of assessment thereupon as shown in the assessment. The assessments shall be collected at the same time and in the same manner as County taxes are collected and all laws providing for the collection and enforcement of County taxes shall apply to the 000235 Resolution No. 99- Page 4 collection and enforcement of the assessments. After collection by the County, the net amount of the assessments, after deduction of any compensation due the County for collection, shall be paid to the Parks and Recreation Maintenance and Improvement District of the City of Moorpark. SECTION 9. The moneys representing assessments collected by the County, shall be deposited in the City Treasury to the credit of the improvement fund previously established under the distinctive designation of the Parks and Recreation Maintenance and Improvement District. Moneys in the improvement fund shall be expended only for the maintenance, servicing, construction or installation of the improvements. SECTION 10. The City Clerk shall certify to the adoption of this resolution and shall cause a certified resolution to be filed in the book of original Resolutions. PASSED AND ADOPTED this 16th day of June, 1999. ATTEST: ah S. Traffenstedt, City Cler Patrick Hunter, Mayor 000236 CITY OF MOORPARK Parks & Recreation Maintenance and Improvement District ENGINEER'S REPORT Fiscal Year 1999 -00 Preliminary April, 1999 (Pursuant to the Landscaping and Lighting Act of 1972 and Article XIIID of the California Constitution) Engineer of Work Shilts Consultants, Inc. 2300 Boynton Avenue, Suite 201 Fairfield, CA 94533 (707) 426 -5016 Ain'- -hv�--n+ e-� 00023'7 CITY OF MOORPARK Parks & Recreation Maintenance and Improvement District TABLE OF CONTENTS LINTRODUCTION ........................................................................................ ..............................1 H. CERTIFICATES .......................................................................................... ..............................3 III. PLANS & SPECIFICATIONS .................................................................... ............................... 4 IV. FISCAL YEAR 1999 -00 ESTIMATE OF COST AND BUDGET .............. ............................... 5 V. METHOD OF APPORTIONMENT ........................................................... .................:............. 6 A. METHOD OF APPORTIONMENT B. ....................................................................... ............................... 6 DISCUSSION OF BENEFIT C. ............................................................................... ............................... 6 GENERAL VERSUS SPECIAL BENEFIT D. ............................................................. ............................... 9 METHOD OF ASSESSMENT. E. 9 PROXIMITY BENEFITS F. ................................................................................. ............................... 10 ASSESSMENT APPORTIONMENT ................................................................... ............................... 10 I. Residential Properties ............................................................................. ............................... 11 2. Commercial/Industrial Properties ........................................................... ............................... 12 3. Vacant Residential Land ........................................................................... .............................13 4. Other Properties ..................................................................................... ............................... 14 S. Appeals and Interpretation ...................................................................... ............................... 15 VLASSESSMENT ............................................................................................ .............................16 VII. ASSESSMENT DIAGRAM ...................................................................... ............................... 18 VIII. APPENDIX A —1972 ACT APPLICATION ................................................ ............................... 20 IX. APPENDIX B — ARTICLE XIIID OF THE CALIFORNIA CONSTITUTION ........................... 24 X. APPENDIX C - 1999 -00 ASSESSMENT ROLL ......................................... ............................... 29 000238 L INTRODUCTION The City of Moorpark (the "City") currently provides park facilities and recreation programs for approximately 28,000 residents. The City currently owns, operates and maintains 13 neighborhood parks and one community park, which are located throughout the developed areas of the City. (For general locations of the City's park facilities, see the Diagram following in this Report.) The City's parks are summarized as follows: ❖ Arroyo Vista Community Park and Recreational Center, (69 developed acres), located near the intersection of Countrywood Drive and Tierra Rejada Road. ❖ Campus Canyon Neighborhood Park, (6 acres), located at Collins Dr. and Hearon Drive. Campus Park Neighborhood Park, (2.5 acres), located on the comer of Hartford St. and Harvard Street. Community Center Park, (.5 acres), 799 Moorpark Avenue. ❖ Country Trail Neighborhood Park, (8 acres), located off Countrywood Drive and Mountain Trail. Glenwood Net Park, (4.5 acres), located on the comer of Tierra Rejada Rd. and Harvester Street. Griffin Neighborhood Park, (5 acres), located on at the intersection of Campus Park Drive and College View Avenue. ❖ Monte Vista Nature Park, (5 acres), located on Spring Road. Mountain Meadows Neighborhood Park, (8 acres), located off Mountain Meadow Street, near Tierra Rejada Road. Peach Hill Neighborhood Park, (10 acres), located on Peach Hill Rd. and Christian Barrett Drive. Poindexter Neighborhood Park, (7.5 acres), located on Poindexter Ave., west of Chaparral Middle School. ❖ Tierra Reiada Neighborhood Park, (8 acres), located at the intersection of Tierra Rejada Road and Mountain Trail. ❖ Virginia Colony Park, (1 acre), located at the intersection of Los Angeles Place and Condor Drive. ❖ Villa Campesina Park, (.5 acre), located at Liberty Bell Road. Prior to 1997, the City funded the majority of the costs for maintenance and improvement of park facilities with an assessment supported by property owners. With the passage of Proposition 218 on November 6, 1996, such an assessment could not be continued unless it is approved by a weighted majority of ballots submitted in an assessment ballot City of Moorpark Parks Maintenance and Recreation Improvement District 04108199 Engineer's Report, Fiscal Year 1999 -00, by Shilts Consultants, Inc. page I 000239 proceeding. As a result, the City discontinued the park maintenance assessment and has funded a reduced level of park maintenance with reserve funds. The City's available reserve funds for this purpose have been depleted and no other funding source has been identified. Therefore, the City is proposing the reestablishment of an assessment district to fund park maintenance services as well as expanding and improving park facilities to meet the growing demand placed on City parks by Moorpark families, employees and youth sports organizations. This Engineer's Report ( "Report") was prepared to establish the budget for the services that would be funded by the proposed 1999 -00 assessments and to determine the benefits received from the park maintenance and improvements by property within the City of Moorpark and the method of assessment apportionment to lots and parcels within the City. This Report and the proposed assessments have been made pursuant to the Landscaping and Lighting Act of 1972, Part 2 of Division 15 of the Califomia Streets and Highways Code (the "Act ") and Article XIIID of the California Constitution (the "Article "). For a more complete description of the Act and the Article, please refer to Appendix A and Appendix B. Following submittal of this Report to the City of Moorpark City Council (the "Council ") for preliminary approval, the Council may, by Resolution, call for an assessment ballot proceeding, and Public Hearing on the proposed reestablishment of the assessments for park maintenance and recreational facility improvements. If the Council approves such Resolution, a notice of assessment and assessment ballot will be mailed to property owners within the City at least 45 days prior to the date of the Public Hearing. Such notice would include a description of the proposed assessments as well as an explanation of the method of voting on the assessments. Each notice would also include a detachable postage prepaid ballot on which the property owner could mark his or her approval or disapproval of the proposed assessments. After the ballots are mailed to property owners in the City, a minimum 45 -day time period must be provided for the return of the assessment ballots. Following this 45 -day time period, a public hearing must be held for the purpose of allowing public testimony regarding the proposed assessments. This hearing is scheduled for June 16, 1999 at 7:00 p.m. At this hearing, the public would have the opportunity to speak on this issue and returned ballots would be tabulated. If it is determined at the public hearing that the assessment ballots submitted in opposition to the proposed assessments do not exceed the assessment ballots submitted in favor of the assessments (weighted by the proportional financial obligation of the property for which ballots are submitted) the Council may take action to approve the levy of the assessments for fiscal year 1999 -00. If the assessments are so confirmed and approved, the levies would be submitted to the County Auditor /Controller by August 1999 for inclusion on the property tax roll for Fiscal Year 1999 -00. City ojMoorpark Parks Maintenance and Recreation Improvement District 04108199 Engineer's Report, Fiscal Year 1999 -00, by Shilts Consultants, Inc. Page 2 000240 CITY OF MOORPARK Parks & Recreation Maintenance and Improvement District 11. CERTIFICATES 1. The undersigned respectfully submits the enclosed Engineer's Report and does hereby certify that this Engineer's Report, and the Assessment and Assessment Diagram herein, have been prepared by m 'n accordance with the order of the City Council of the City of Moorpark, adopted on 3 -11999. -9il En inee of Work, License No. C14084 2. I, the Clerk of the City Council, City of Moorpark, County of Ventura, California, hereby certify that the enclosed Engineer's Report, together with the Assessment and Assessment Diagram thereto attached, was filed and recorded with me on , 1999. Clerk of the City Council 3. I, the Clerk of the City Council, City of Moorpark, County of Ventura, California, hereby certify that the Assessment in this Engineer's Report was approved and confirmed by the City Council on . 1999, by Resolution No. Clerk of the City Council 4. I, the Clerk of the City Council of the City of Moorpark, County of Ventura, California, hereby certify that a copy of the Assessment and Assessment Diagram was filed in the office of the County Auditor of the County of Ventura, California, on 1999. Clerk of the City Council 5. I, the County Auditor of the County of Ventura, California, hereby certify that a copy of the Assessment Roll and Assessment Diagram for fiscal year 1999 -00 was filed with me on , 1999. County Auditor, County of Ventura City of Moorpark Parks Maintenance and Recreation Improvement District 04108199 Engineer's Report, Fiscal Year 1999 -00, by Shilts Consultants, Inc. Page 3 000241 Ill. PLANS & SPECIFICATIONS The City of Moorpark maintains park facilities throughout the City. The work and improvements proposed to be undertaken by the City of Moorpark Parks & Recreation Maintenance and Improvement District (the "District ") and the cost thereof paid from the levy of the annual assessment provide special benefit to Assessor Parcels within the District as defined in the Method of Assessment herein. Consistent with the Landscaping and Lighting Act of 1972, (the "Act ") the work and improvements are generally described as follows: Installation, maintenance and servicing of public recreational facilities and improvements, including but not limited to landscaping, sprinkler systems, park'grounds, park facilities, landscape corridors, ground cover, shrubs and trees, street frontages, playground equipment and hardcourt areas, water, drainage systems, lighting, fencing, entry monuments, basketball courts, tennis courts, running tracks, swimming pools, restroom facilities including sewage systems, other recreational facilities, : security guards, graffiti removal and repainting, and labor, materials, supplies, utilities and equipment, as applicable, for property owned and maintained by the City of Moorpark. Any plans and specifications for these improvements will be filed with the Director of Community Services of the City of Moorpark and are incorporated herein by reference. As applied herein, "Installation" means the construction of recreational improvements, including, but not limited to, land preparation, such as grading, leveling, cutting and V0 filling, sod, landscaping, irrigation systems, sidewalks and drainage, :lights, playground equipment, play courts, recreational facilities and public restrooms. "Maintenance" means the 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, and the cleaning, sandblasting, and painting of walls and other improvements to remove or cover graffiti. "Servicing" means the furnishing of electric current, or energy, gas or other illuminating agent for any public lighting facilities or for the lighting or operation of any other improvements; or water for the irrigation of any landscaping, the operation of any fountains, or the maintenance of any other improvements. City of Moorpark Parks Maintenance and Recreation Improvement District 04108199 Engineer's Report, Fiscal Year 1999 -00, by Shilts Consultants, Inc. Page 4 000242 CITY OF MOORPARK Parks and Recreation Maintenance and Improvement District Estimate of Cost Fiscal Year 1999 -00 Budget Allocation to Property Total Assessment Budget Single Family Equivalent Benefit Units Assessment per Single Family Equivalent Unit Engineer' Report, Fiscal Year 1999 -00 City of Moorpark, by Shilts Consultants, Inc. $447,184 11,466.25 $39.00 Page 5 000243 Total Budget Installation, Maintenance & Servicing Costs New Playground Equipment to Meet Current Safety and ADA Standards $110,000 Replace Park Benches $14,000 Property Maintenance $17,400 Tree Trimming $6,340 Landscaping Services $267,150 Water $118,100 Utilities $18,500 Supplies and Materials $17,300 Equipment and Vehicle Operation and Maintenance $18,000 Graffiti Abatement $25,000 Maintenance and Operation of Grounds and Recreational Facilities $162,864 Equipment and Repair $1,000 Equipment Rental $5,900 Subtotal - Installation, Maintenance and Servicing $781,554 Administrative Costs Assessment Formation and Engineering $34,600 District Administration $31,365 Design, Printing and Mailing of Notices, Including Return Postage $9,300 Ballot Tabulation $4,000 County Assessment Collection Charges $1,095 Allowance for Uncollectable Assessments $5,000 Subtotal - Administration $85,360 Totals for Installation, Maintenance, Servicing and Administration $866,914 Less: City Contribution for General and Special Benefits ($419,730) Net Cost of Installation, Maintenance, Servicing and Administration $447,184 (Net Amount to be Assessed) ..aa3•..s�ea».�,: . � ;.. � �.s'.'�m .�a °a x �� '2.",.'_x�a��3"�"��r>�W����`r. Budget Allocation to Property Total Assessment Budget Single Family Equivalent Benefit Units Assessment per Single Family Equivalent Unit Engineer' Report, Fiscal Year 1999 -00 City of Moorpark, by Shilts Consultants, Inc. $447,184 11,466.25 $39.00 Page 5 000243 V. METHOD OF APPORTIONMENT A. Method of Apportionment This section of the Engineer's Report includes an explanation of the benefits to be derived from the installation, maintenance and servicing of park facilities throughout the City, and the methodology used to apportion the total assessment to properties within the Parks Maintenance and Recreational Improvement District. The Parks & Recreation Maintenance and Improvement District consists of all Assessor Parcels within the boundaries of the City of Moorpark as defined by the County of Ventura tax code areas. The parcels include all privately or publicly owned parcels within said boundaries. The method used for apportioning the assessment. is based upon the proportional special benefits to be derived by the properties in the Parks & Recreation Maintenance and Improvement District over and above general benefits conferred on real property or to the public at large. The apportionment of special benefit is a two step process: the first step is to identify the types of special benefit arising from the improvements, and the second step is to allocate the assessments to property based on the estimated relative special benefit for each type of property. B. Discussion of Benefit In summary, the assessments can only be levied based on the special benefit to property. This benefit is received by property over and above any general benefits. Moreover, such benefit is riot based on any one property owner's use of the City's recreational facilities or a property owner's specific demographic status. With reference to the requirements for assessments, Section 22573 of the Landscaping and Lighting Act of 1972 states: "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. " Proposition 218, as codified in Article XIIID of the California Constitution, has confirmed that assessments must be based on the special benefit to property: "No assessment shall be imposed on any parcel which exceeds the reasonable cost of the proportional special benefit conferred on that parcel. " Six benefit categories have been established that represent the types of special benefit to residential, commercial, industrial and other lots and parcels resulting from the installation, maintenance and servicing of park and recreation improvements to be provided with the assessment proceeds. These categories of special benefit are derived City ofMoorpark Parks Maintenance and Recreation Improvement District 04108199 Engineer's Report, Fiscal Year 1999 -00, by Shills Consultants, Inc. Page 6 000244 from the statutes passed by the California Legislature and other studies which describe the types of special benefit received by property from maintenance and improvements such as those proposed by the City of Moorpark Parks & Recreation Maintenance and Improvement District. These types of special benefit are summarized as follows: • Enhanced recreational opportunities and expanded access to recreational facilities for all residents throughout the City. Residential properties benefit from the enhanced recreational opportunities offered by the improvements and maintenance services that would be made throughout the City. These maintenance and improvement services include, among others, new playground equipment, improved playcourt, playfield and turf areas, and higher levels of maintenance and watering than would be provided in absence of the assessment. These improved park facilities will be available to residents and guests of property owners within the City, thereby making these properties more valuable. Non - residential properties also will benefit from the improved park facilities in many ways. Employees will have better and well- maintained facilities to utilize for exercise, recreational activities, sporting events, picnics, company gatherings or other uses. These improvements, therefore, enhance an employer's ability to attract and keep quality employees. The benefits to employers ultimately flow to the property because better employees improve the business prospects for companies and enhanced economic conditions benefit the property by making it more valuable. • Protection of views, scenery and other resources values and environmental benefits enjoyed by residents, employees, customers and guests and preservation of public assets maintained by the City. The proposed Parks & Recreation Maintenance and Improvement District will provide funding to protect and improve the public resources and facilities of the City. For example, the assessments will provide funding to remove graffiti from City park and recreation facilities, to keep the City's park grounds clean with consistent trash removal and to adequately maintain the grounds and facilities so that turf areas remain green and healthy and the grounds and facilities of the City do not fall into disrepair. This benefits properties by maintaining and improving the public resources in the community. • Increased economic activity. Well- maintained and improved park facilities will allow for expansion of recreation programs and increased use of the facilities. Expanded use and activities facilitated by new and refurbished facilities brings greater numbers of people in the area who can utilize the services of businesses within the District. The users of the City's recreational facilities will be more likely to shop and eat locally. Increased use leads to increased economic activity in the area, which is a benefit ultimately to property. • Expanded employment opportunity. improved recreational facilities and public resources foster business growth which, in turn, creates additional employment opportunities for City residents. In addition, the assessments expand local employment opportunities by funding new projects that may create the need for additional construction or maintenance jobs. City oJMoorpark Parks Maintenance and Recreation Improvement District 04108199 Engineer's Report, Fiscal Year 1999 -00, by Shilts Consultants, Inc. Page 7 000245 Improved and well- maintained recreational facilities also provide business properties with an opportunity to attract and keep employees due to the benefits provided by these recreational facilities. Reduced cost of local government in law enforcement, public health care, fire prevention and natural disaster response. High quality recreational facilities allow residents and employees in the City to enjoy activities close to home, thereby not spending time driving to other areas. Improved and well - maintained recreational facilities can also serve to improve public safety and reduce the cost to local government by providing a positive setting for youth and adult activities. All of these factors ultimately benefit property by making the community more desirable and property, in turn, more valuable. Enhanced quality of life and desirability of the area. The assessments will provide funding to improve the City's public recreational facilities and to ensure that the parks and facilities remain operable, safe, and well maintained. Such improved and well- maintained facilities enhance the overall quality of life and desirability of the area. This is a benefit to residential, commercial, industrial and other properties. • Specific enhancement of property values. The above benefit factors, when applied to property in the City, create specific enhancement of property values. For example, the assessments will provide funding to improve the City's public facilities and grounds and to ensure that the grounds and facilities remain operable, safe, and well maintained. Such improved and well- maintained facilities enhance the overall quality of life and desirability of the area. in turn, property values are specifically enhanced by the availability of improved and well- maintained recreation facilities and public resources within a community. Values of commercial and industrial property increase based on the economic activity and the quality of public resources in the area. Having a system of well- maintained and improved neighborhood parks serves as an important environmental feature for which the community of Moorpark will be known. This, in turn, makes the City of Moorpark a more attractive and safer place to live and to locate new businesses by improving overall quality of the community, providing pleasant places for residents to enjoy, and increasing recreational opportunities. The correlation between enhanced property values and improved and well - maintained recreational facilities has been documented. The United States Department of the Interior, National Park Service determined that 'An investment in parks and recreation helps reduce pollution and noise, makes communities more livable, and increases property value." Additionally, the National Recreation and Park Association, in June 1985, stated, "The recreation value is realized as a rise in the value of land and other property in or near the recreation area, and is of public interest to the taxpayers, who have a stake in a maximum of total assessed values." In addition, professional property appraisers have found that well- maintained public recreational grounds and facilities enhance property values in a community. City ojMoorpark Parks Maintenance and Recreation Improvement District 04108199 Engineer's Report, Fiscal Year 1999 -00, by Shilts Consultants, Inc. page 8 000246 C. General versus Special Benefft The cost of improving and maintaining the grounds and facilities for use and enjoyment by property owners, residents, employees and customers in the City is a special benefit to property in the District because the improvements and maintenance confer the special benefit factors described above. Moreover, in absence of the proposed assessments, the level of park maintenance and improvement would decline due to City budget constraints. Therefore, the assessments provide special benefits to the community by supporting a higher level of park maintenance and improvement than would otherwise be provided. The maintenance and improvement of the City's parks and recreational facilities from the assessments also provide a degree of general benefits to the public at large. A measure of this general benefit is the proportionate amount of time that the City's parks and recreational facilities are used and enjoyed by the greater public at large'. It is reasonable to assume that approximately 25% of the usage and enjoyment of the improvements is by the greater public. Therefore, approximately 25% of the benefits conferred by the proposed maintenance and improvements are determined to be general in nature. (It should be noted, however, that benefit factors such as protection of resource values, reduced cost of local government and specifically enhanced property values are conferred to property in the District regardless of the use of the parks and facilities.) The City's total budget for maintenance, operation and improvement of its parks and recreational facilities is $866,914. Of this total budget amount, the proposed contribution from the City from sources other than the assessments is $419,730. If the City Council approves this level of contribution, the City's contribution would equate to approximately 48% of the total budget for park maintenance and improvement, which more than offsets the cost of the general benefits resulting from the maintenance and improvements .2 D. Method of Assessment The second step in apportioning assessments is to determine the relative special benefit for each property. This process involves determining the relative benefit received by each property in relation to a single family home, or, in other words, on the basis of Single Family Equivalents (SFE). This SFE methodology is commonly used to distribute assessments in proportion to estimated special benefit and is generally recognized as The greater public at large is generally defined as those who are not residents, property owners, customers or employees within the District boundaries. . At the proposed City contribution of $419,730, the total amount assessable to property would be $447,184, which equates to an assessment rate of $39.00 per single family equivalent. The City's contribution is proposed at this amount in part to establish an assessment rate that is generally equal to the previous assessment amount. It should be noted that when this Report is considered for preliminary approval, the City could establish a different level of contribution or budget, with the constraint that the least amount of City contribution for general benefits is 25% of the total budget. City ojMoorpark Parks Maintenance and Recreation Improvement District 04108199 Engineer's Report, Fiscal Year 1999 -00, by Shilts Consultants, Inc. Page 9 00024'7 providing the basis for a fair and appropriate distribution of assessments. For the purposes of this Engineer's Report, all properties are designated a SFE value, which is each property's relative benefit in relation to a single family home on one parcel. In this case, the "benchmark" property is the single family detached dwelling which is one Single Family Equivalent or one SFE. E. Proximity Benefits The City's park facilities are easily accessible by anyone within a neighborhood or the City. Therefore, benefits from the proposed improvements do not vary based on proximity of the parcels to the improvements because the increased benefits of greater proximity to the improvements are generally offset by a parallel increase in negative factors such as higher levels of traffic, noise, etc. that comes with increased proximity. Consequently, since all parcels in the City have good access and proximity to the City's grounds and recreational facilities and the benefits to relatively closer proximity are offset by other factors, proximity is not considered to be a factor in determining benefit within the Parks Maintenance and Improvement District. F. Assessment Apportionment In the process of determining the appropriate method of assessment, the Engineer considered various alternatives. For example, an assessment only for all residential improved property was considered but was determined to be inappropriate because commercial, industrial and other property also receive benefits from the assessments. Moreover, a fixed or flat assessment for all properties of similar type was deemed to be inappropriate because larger properties receive a higher degree of benefit than other similarly used properties that are significantly smaller. (For two properties used for commercial purposes, there is clearly a higher benefit provided to the larger property in comparison to a smaller commercial property because the larger property generally supports a larger building and has higher numbers of employees, customers and guests that would benefit from well maintained and improved parks and recreational facilities. This benefit ultimately flows to the property.) Larger parcels, therefore, receive an increased benefit from the assessments. As stated previously, the special benefits derived from the assessments are conferred on property and are not based on a specific property owner's use of the improvements, or a specific property owner's occupancy of property or the property owner's demographic status such as age or number of dependents. However, it is ultimately people who value the special benefits described above, use and enjoy the City's park and recreational facilities and control property values by placing a value on the special benefits to be provided by the improvements. In other words, the benefits derived to property are related to the average number of people who could potentially live on, work at or otherwise could use a property, not how the property is currently used by the present owner. Therefore, the number of people who could or potentially live on, work at City ofMoorpark Parks Maintenance and Recreation Improvement District 04108199 Engineer's Report, Fiscal Year 1999 -00, by Shilts Consultants, Inc. Page 10 or otherwise use a property is an indicator of the relative level of benefit received by a property. Therefore, the Engineer determined that the appropriate method of assessment should be based on the type of property, the relative size of the property and the potential use of property by residents and employees. This method is further described below. .1. Residential Properties All improved residential properties that represent a single residential dwelling unit are assigned one Single Family Equivalent or 1.0 SFE. Traditional houses, zero -lot line houses and townhomes are included in this category. Properties with more than one residential unit are designated as multi - family residential properties. These properties benefit from the improvements in proportion to the number of dwelling units that occupy each property and the average number of people who reside in multi - family residential units versus the average number of people who reside in a single family home. The population density factors for the City of Moorpark, as depicted below, provide the basis for determining the SFE factors for residential properties. Using the total population in a certain property type within the City of Moorpark from the 1990 Census and dividing it by the total number of such households, finds that approximately 3.54 persons occupy each single family residence, whereas an average of 2.78 persons occupy each multi - family residence. Using the ratio of one SFE for each single - family residence, which equates to one SFE for every 3.54 persons, 0.78 SFE would equate to one multi - family unit or 0.78 SFE for every 2.78 residents. Likewise, using the average population density ratios for other types of residential property, each condominium unit receives 0.80 SFE and each mobile home receives 0.65 SFE. Table 1 RP.-itJPnfln1 Accaoom..+ r._+­ Source: 1990 Census, City of Moorpark City ofMoorpark Parks Maintenance and Recreation Improvement District 04108199 Engineer's Report, Fiscal Year 1999 -00, by Shills Consultants, Inc. Page 11 000249 Total a.VaaL 1 LLV LVIJ Occupied Persons SF Population Households per Household Facto Single Family Residential Condominium Multi - Family Residential Mobile Homes 20,105 2,361 2,155 672 5,679 835 776 292 3.54 2.83 2.78 2.30 1.00 0.80 0.78 0.65 Source: 1990 Census, City of Moorpark City ofMoorpark Parks Maintenance and Recreation Improvement District 04108199 Engineer's Report, Fiscal Year 1999 -00, by Shills Consultants, Inc. Page 11 000249 Z Commerciaffndustrial Properties SFE values for commercial and industrial land uses are based on the equivalence of special benefit on a land area basis between single family residential property and the average commercial/industrial property. The SFE values for various commercial and industrial land uses are further defined by using average employee densities because the special benefit factors described previously are also related to the average number of people who work at commercial/industrial properties. In order to determine employee density factors, the findings from the San Diego Association of Governments Traffic Generators Study (the "SANDAG Study ") are used because these findings were approved by the State Legislature for use in justifying commercial and industrial school facilities fees and are considered to be a good representation of the average number of employees per acre of land 'area for commercial and industrial properties. As determined by the SANDAG Study, the average number of employees per acre for commercial and industrial property is 35. In comparison, the average number of people residing in a single family home in the area is 3.54. Since the average lot size for a single family home in Moorpark is approximately 0.17 acres, the average number of residents per acre of residential property is 21.3 The employee density per acre is generally 1.7 times the population density of single family residential property per acre (35 employees per acre / 21 residents per acre). Therefore, the average employee density can be used as the basis for allocating benefit to commercial or industrial property since a property with 1.7 employees receives generally similar special benefit to a residential property with 1 resident. This factor of equivalence of benefit between 1 resident to 1.7 employees is the basis for allocating commercial /industrial benefit. Table 2 shows the average employees per acre of land area or portion thereof for commercial and industrial properties and lists the relative SFE factors per fifth acre for properties in each land use category. Commercial and industrial properties in excess of 5 acres generally involve uses that are more land intensive relative to building areas and number of employees (lower coverage ratios). As a result, the benefit factors for commercial and industrial property land area in excess of 5 acres is determined to be the SFE rate per fifth acre for the first 5 acres and the relevant SFE rate per each additional acre over 5 acres. Institutional properties that are used for residential, commercial or industrial purposes are also assessed at the appropriate residential, commercial or industrial rate. 3 . Average lot size determined by an analysis of real property maps and Ventura County assessor parcel data. City ofMoorpark Parks Maintenance and Recreation Improvement District 04108199 Engineer's Report, Fiscal Year 1999 -00, by Shilts Consultants, Inc. Page 12 000250 Table 2 Commercial/Industrial Assessment Factors 1. Source: San Diego Association of Governments Traffic Generators Study 2. The SFE factors for commercial and industrial parcels are applied by the fifth acre of land area or portion thereof. (Therefore, the minimum assessment for any assessable parcel in these categories is the SFE Units listed herein.) 3. Vacant Residential Land The benefits to be received from the construction and maintenance of recreational facilities throughout the City include active benefits which are related to the use and enjoyment of property in the City and passive benefits which are related to the underlying land. An example of a passive benefit is enhancement of property value that will accrue to a vacant parcel from the park maintenance and improvements based on its future potential use. Another example of a passive benefit factor is increased economic activity because all properties in areas with increased economic activity are generally more valuable. Undeveloped property also benefits from the installation and maintenance of recreational facilities because when the property is developed, the recreational facilities will be available to the developed property. The benefit to vacant properties is determined to be proportional to the corresponding benefits for similar type developed properties. It is reasonable to assume that approximately 25% of the benefits are related to the underlying land and 75% are related to the day to day use of the property. Using this ratio, the SFE factor for vacant parcels is 0.25 per parcel. As properties are approved for development, their value increases. Likewise, the special benefits received by vacant property increases as the property is approved for development, or becomes closer to being fully improved. When property moves from vacant status to the point at which a development application and engineering plans have been submitted to the City for approval, such property is deemed to receive 35% of the relative benefits that would be received by the property after it is fully improved or City of Moorpark Parks Maintenance and Recreation Improvement District 04108199 Engineer's Report, Fiscal Year 1999 -00, by Shilts Consultants, Inc. Page 13 000251 Average SFE Units Type of Commercial /Industrial Employees per Land Use Per Acre 1/5 Acre 2 Commercial 24 0.7 Office 68 1.9 Shopping Center 24 0.7 Industrial 24 0.7 Self Storage or Parking Lot 1 0.03 1. Source: San Diego Association of Governments Traffic Generators Study 2. The SFE factors for commercial and industrial parcels are applied by the fifth acre of land area or portion thereof. (Therefore, the minimum assessment for any assessable parcel in these categories is the SFE Units listed herein.) 3. Vacant Residential Land The benefits to be received from the construction and maintenance of recreational facilities throughout the City include active benefits which are related to the use and enjoyment of property in the City and passive benefits which are related to the underlying land. An example of a passive benefit is enhancement of property value that will accrue to a vacant parcel from the park maintenance and improvements based on its future potential use. Another example of a passive benefit factor is increased economic activity because all properties in areas with increased economic activity are generally more valuable. Undeveloped property also benefits from the installation and maintenance of recreational facilities because when the property is developed, the recreational facilities will be available to the developed property. The benefit to vacant properties is determined to be proportional to the corresponding benefits for similar type developed properties. It is reasonable to assume that approximately 25% of the benefits are related to the underlying land and 75% are related to the day to day use of the property. Using this ratio, the SFE factor for vacant parcels is 0.25 per parcel. As properties are approved for development, their value increases. Likewise, the special benefits received by vacant property increases as the property is approved for development, or becomes closer to being fully improved. When property moves from vacant status to the point at which a development application and engineering plans have been submitted to the City for approval, such property is deemed to receive 35% of the relative benefits that would be received by the property after it is fully improved or City of Moorpark Parks Maintenance and Recreation Improvement District 04108199 Engineer's Report, Fiscal Year 1999 -00, by Shilts Consultants, Inc. Page 13 000251 developed. Thus the SFE factor for property with proposed development applications is 35% of the rate that would be applied to the property when it is fully developed. At the second stage towards development, tentative parcel maps and site development plans are approved for the property. At this point, the property is at the final stage and can shortly undergo construction. Since the property is nearing the point of development, its special benefits increase. The Engineer has determined that the relative level of benefit for approved property is 65% of the rate for similar developed property. Therefore, all approved property is assigned an SIFE factor that is equal to 65% of the SFE factor that would be applied to the property after it is fully developed .4 4. Other Properties All properties that are specially benefited are assessed. Public right -of -way, parcels, well, reservoir or other water rights parcels, limited access open space parcels, watershed parcels and common area parcels typically do not generate employees, residents, customers or guests. Moreover, many of these parcels have limited economic value and, therefore, do not benefit from specific enhancement of property value. Such parcels are, therefore, not specially benefited and are not assessed. Church parcels, school parcels and other properties used for educational purposes typically generate a lower number of employees than other non - residential parcels. Moreover, many of these parcels provide some degree of on -site amenities that serve to offset some of the benefits from the Parks Maintenance and Improvement District. Therefore, these parcels receive minimal benefit and are assessed an SFE factor of 1. Publicly or institutionally owned property that is used for residential, commercial, office or industrial purposes benefits from the assessments at the same level as any other similarly used property that is privately owned. Therefore, such publicly or institutionally owned property is assessed at the same rate as other similarly used property. a . For example, if a property is proposed for development of 100 single family homes, the SFE factor would be 100 SFE *35 %, which equals 35 SFE. After the property is approved for development, the SFE factor would be 65 (100 SFE upon completion * 65 %). The rates for commercial and industrial property are applied similarly. City of Moorpark Parks Maintenance and Recreation Improvement District 04/08/99 Engineer's Report, Fiscal Year 1999 -00, by Shilts Consultants, Inc. Page 14 000252 5. Appeals and Interpretation Any property owner who feels that the assessment levied on the subject property is in error as a result of incorrect information being used to apply the foregoing method of assessment, may file a written appeal with the Director of Community Services or her or his designee. Any such appeal is limited to correction of an assessment during the then current or, if before July 1, the upcoming fiscal year. Upon the filing of any such appeal, the Director of Community Services or his or her designee will promptly review the appeal and any information provided by the property owner. If the Director of Community Services or her or his designee finds that the assessment should be modified, the appropriate changes shall be made to the assessment roll. If any such changes are approved after the assessment roll has been filed with the County for collection, the Director of Community Services or his or her designee is authorized to refund to the property owner the amount of any approved reduction. Any property owner who disagrees with the decision of the Director of Community Services or her or his designee, may refer their appeal to the City Council of the City of Moorpark and the decision of the City Council of the City of Moorpark shall be final. City of Moorpark Parks Maintenance and Recreation Improvement District 04108199 Engineer's Report, Fiscal Year 1999 -00, by Shilts Consultants, Inc. Page 15 000258 K ASSESSMENT WHEREAS, on January 28, 1999 the City Council of the City of Moorpark, County of Ventura, California, pursuant to the provisions of the Landscaping and Lighting Act of 1972 and Article XIIID of the California Constitution (collectively "the Act "), adopted its Resolution Initiating Proceedings For the Formation of a Parks & Recreation Maintenance and Improvement District; WHEREAS, said Resolution directed the undersigned Engineer of Work to prepare and file a report presenting an estimate of costs, a diagram for the assessment district and an assessment of the estimated costs of the improvements upon all assessable parcels within the assessment district, to which Resolution and the description of said proposed improvements therein contained, reference is hereby made for further particulars; NOW, THEREFORE, the undersigned, by virtue of the power vested in me under said Act and the order of the City Council of said City of Moorpark, hereby make the following assessment to cover the portion of the estimated cost of said improvements, and the costs and expenses incidental thereto to be paid by the assessment district. The amount to be paid for said improvements and the expense incidental thereto, to be paid by the Parks & Recreation Maintenance and Improvement District for the fiscal year 1999 -00 is generally as follows: SUMMARY COST ESTIMATE F. Y. 1999 -00 As required by the Act, an Assessment Diagram is hereto attached and made a part hereof showing the exterior boundaries of said Parks & Recreation Maintenance and Improvement District. The distinctive number of each parcel or lot of land in the said Parks & Recreation Maintenance and Improvement District is its Assessor Parcel Number appearing on the Assessment Roll. City ofMoorpark Parks Maintenance and Recreation Improvement District 04108199 Engineer's Report, Fiscal Year 1999 -00, by Shilts Consultants, Inc. Page 16 000254 Budget Parks Maintenance $442,914 Capital Improvements $124,000 Administration Expenses $85,360 TOTAL BUDGET $866,914 Less: City Contribution for General and Special Benefits ($419,730) NET AMOUNT TO ASSESSMENTS $447,184 As required by the Act, an Assessment Diagram is hereto attached and made a part hereof showing the exterior boundaries of said Parks & Recreation Maintenance and Improvement District. The distinctive number of each parcel or lot of land in the said Parks & Recreation Maintenance and Improvement District is its Assessor Parcel Number appearing on the Assessment Roll. City ofMoorpark Parks Maintenance and Recreation Improvement District 04108199 Engineer's Report, Fiscal Year 1999 -00, by Shilts Consultants, Inc. Page 16 000254 And I do hereby assess and apportion said net amount of the cost and expenses of said improvements, including the costs and expenses incident thereto, upon the parcels and lots of land within said Parks & Recreation Maintenance and Improvement District, in accordance with the special benefits to be received by each parcel or lot, from the improvements, and more particularly set forth in the Cost Estimate and Method of Assessment hereto attached and by reference made a part hereof. The assessment is made upon the parcels or lots of land within the Parks & Recreation Maintenance and Improvement District in proportion to the special benefits to be received by the parcels or lots of land, from said improvements. The assessment is subject to an annual adjustment tied to the Engineering News Record Construction Cost Index for the Los Angeles Area as of December of each succeeding year, with a maximum annual adjustment not to exceed 3 %. Each parcel or lot of land is described in the Assessment Roll by reference to its parcel number as shown on the Assessor's Maps of the County of Ventura for the fiscal year 1999 -00. For a more particular description of said property, reference is hereby made to the deeds and maps on file and of record in the office of the County Recorder of said County. I hereby place opposite the Assessor Parcel Number for each parcel or lot within the Assessment Roll, the amount of the assessment for the fiscal year 1999 -00 for each parcel or lot of land within the said Parks & Recreation Maintenance and Improvement District. Dated: April 8, 1999 Engineer of Work By Jos h L% hilts, License No. C14084 City of Moorpark Parks Maintenance and Recreation Improvement District 04108199 Engineer's Report, Fiscal Year 1999 -00, by Shilts Consultants, Inc. Page 17 000255 Vll. Assessment Diagram The Parks & Recreation Maintenance and Improvement District includes all properties within the boundaries of the City of Ventura. The area within the boundaries of the City encompasses approximately 12.4 square miles, the majority of which is developed for urban use, planned or approved for development. The boundaries of the Parks Maintenance and Improvement District are displayed on the following Assessment Diagram. City ofMoorpark Parks Maintenance and Recreation Improvement District 04108199 Engineer's Report, Fiscal Year 1999 -00, by Shilts Consultants, Inc. Page 18 000256 Pk Note: REFERENCE IS HEREBY MADE TO THE MAPS AND DEEDS OF RECORD IN THE OFFICE OF THE ASSESSOR OF THE COUNTY OF VENTURA FOR A DETAILED DESCRIPTION OF THE LINES AND DIMENSIONS OF ANY PARCELS SHOWN HEREIN. THOSE MAPS SHALL GOVERN FOR ALL DETAILS CONCERNING THE LINES AND DIMENSIONS OF SUCH PARCELS. EACH PARCEL IS IDENTIFIED IN SAID MAPS BY ITS DISTINCTIVE ASSESSOR'S PARCEL NUMBER. Legend Parks Assessment Boundary Line Streets Railroads Shills Consultants, Inc. 2300 Boynton Avenue, Suite 201 Fairfield, CA 94533 N W +E S Virginia N NP FILED IN THE OFFICE OF THE CITY CLERK OF THE CITY OF MOORPARK, COUNTY OF VENTURA, CALIFORNIA, THIS -DAY OF , 1999. CITY CLERK RECORDED IN THE OFFICE OF THE DIRECTOR OF COMMUNITY SERVICES OF THE CITY OF MOORPARK, COUNTY OF VENTURA, CALIFORNIA, THIS Pk DAY OF 1999. FILED THIS DAY OF 1999, AT THE HOUR OF O'CLOCK — M. IN THE OFFICE OF THE COUNTY AUDITOR OF THE COUNTY OF VENTURA, STATE OF CALIFORNIA, AT THE REQUEST OF THE CITY OF MOORPARK CITY COUNCIL. COUNTY AUDITOR, COUNTY OF VENTURA DIRECTOR OF COMMUNITY SERVICES AN ASSESSMENT WAS CONFIRMED AND LEVIED BY THE CITY COUNCIL OF THE CITY OF MOORPARK ON THE LOTS, PIECES AND PARCELS OF LAND ON THIS ASSESSMENT DIAGRAM ON THE DAY OF ,1999 FOR FISCAL YEAR 1999 -00 AND SAID ASSESSMENT DIAGRAM AND THE ASSESSMENT ROLL FOR SAID FISCAL YEAR WERE FILED IN THE OFFICE OF THE COUNTY AUDITOR OF THE COUNTY OF VENTURA ON THE DAY OF 1999. REFERENCE IS HEREBY MADE TO SAID RECORDED ASSESSMENT ROLL FOR THE EXACT AMOUNT OF EACH ASSESSMENT LEVIED AGAINST EACH PARCEL OF LAND. CITY CLERK CITY OF MOORPARK PARKS & RECREATION MAINTENANCE AND IMPROVEMENT DISTRICT ASSESSMENT DIAGRAM Vlll. Appendix A ­1972 ACT APPLICATION If approved, the Park Maintenance and Improvement District, through the Act, would collect special benefit assessments and provide funding for the installation, maintenance and servicing _ of park and recreational facilities in the City. The assessments are levied on the basis of benefit and are considered an assessment, not a tax. Pertinent excerpts from the Act are included below. §22500 Short Title This part shall be known and may be cited as the "Landscaping and Lighting Act of 1972." §22503 Assessment district; benefited territory An assessment district shall consist of all territory which, as determined by the legislative body, will be benefited by the improvements and is to be assessed to pay the costs thereof. §22504 Assessment District; territory within local agency An assessment district may consist of all or any part of the territory within the local agency and, in the case of a county, may consist of all or any part of the I unincorporated territory of the county. §22505 Assessment district; contiguous or non - contiguous territory An assessment district may consist of contiguous or non - contiguous areas. The improvement in one area need not be of benefit to other areas. §22523 Engineer "Engineer" means the city engineer, county engineer, engineer of the district, or any person designated by the legislative body as the engineer for the purposes of this part, including officer, board, or employee of the local agency or any private person or firm specially employed by the Local agency as engineer for the purposes of this part. (Revised by Article XIIID of the California Constitution) §22525 Improvement "Improvement" means one or any combination of the following: (a) The installation of planting or landscaping. City ofMoorpark Parks Maintenance and Recreation Improvement District Engineer's Report, Fiscal Year 1999 -00, by Shilts Consultants, Inc. 04/08/99 Page 20 000258 (b) The installation or construction of statuary, fountains, or other ornamental structures and facilities. (c) The installation or construction of public lighting facilities, including, but not limited to, traffic signals. (d) The installation or construction of any facilities which are appurtenant to and 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. (e) The installation of park or recreational improvements, including but not limited to all of the following: (1) Land preparation, such as grading, leveling, cutting and filling sod landscaping, irrigation systems, sidewalks, and drainage. (2) Lights, playground equipment, play courts, and public restrooms. (f) The maintenance or servicing or both, of any of the foregoing. (g) The acquisition of land for park, recreational or open -space purposes. (h) The acquisition of any existing improvement otherwise authorized pursuant to this section. §22569 Estimates of costs; content The estimate of the costs of the improvements for the fiscal year shall contain estimates for all of the following: (a) The total costs for improvements to be made that year, being the total costs of constructing or installing all proposed improvements and of maintaining and servicing all existing and proposed improvements, including all incidental expenses. This may include a reserve which shall not exceed the estimated costs of maintenance and servicing to December 10 of the fiscal year, or whenever the city expects to receive its apportionment of special assessments and tax collections from the county, whichever is later. (b) The amount of any surplus or deficit in the improvement fund to be carried over from a previous fiscal year. (c) The amount of any contributions to be made from sources other than assessments levied pursuant to this chapter. City ofMoorpark Parks Maintenance and Recreation Improvement District 04108199 Engineer's Report, Fiscal Year 1999 -00, by Shilts Consultants, Inc, page 21 000259 (d) The amount, if any, of the annual installment for the fiscal year where the legislative body has ordered an assessment for the estimated cost of any improvements to be levied and collected in annual installments. (e) The net amount to be assessed upon assessable lands within the assessment district, being the total improvement costs, as referred to in subdivision (a), increased or decreased, as the case may be, by any of the amounts referred to in subdivision (b), (c), or (d). §22573 Net amount; apportionment 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 determination of whether or not a lot or parcel will benefit from the improvements shall be made pursuant to the Improvement Act of 1911 Division 7 (commencing with Section 5000). §22574 Classification into zones The diagram and assessment may classify various areas within an assessment district into different zones where, by reason of variations in the nature, location, and extent of the improvements, the various areas will receive differing degrees of benefit from the improvements. A zone shall consist of all territory that will receive substantially the same degree of benefit from the improvements. §22605 Authority of Legislative Bodies The Legislative body, either in a single proceeding or by separate proceedings, may order one or any combination of the following changes of organization: (a) The annexation of territory to an existing assessment district formed under this part. (b) The detachment of territory from an existing assessment district formed under this part. (c) The dissolution of an existing assessment district formed under this part. (d) The consolidation into a single assessment district formed under this part any combination of two or more of any of the following: (1) An existing assessment district formed pursuant to this part. (2) An existing lighting, street lighting, maintenance, or tree planting district formed pursuant to Chapter 26 (commencing with Section 5820) of City ofMoorpark Parks Maintenance and Recreation Improvement District 04108199 Engineer's Report, Fiscal Year 1999 -00, by Shilts Consultants, Inc. Page 22 000260 Part 3 of Division 14, or Part 1 (commencing with Section 18000), Part 2 (commencing with Section 18300), Part 3 (commencing with Section 18600), or Part 4 (commencing with Section 19000) of Division 14, or Part 1 (commencing with Section 22000) of this division, or pursuant to any procedural ordinance adopted by a charter city. (e) The legislative body shall not, by annexation, detachment, dissolution, or consolidation, alter the obligation of property owners to pay the principal of, and interest on, bonded debt or notes issued pursuant to Section 22662.5. This section does not prevent the lawful refunding of the bonded debt or notes or the apportionment of assessments upon the division of properties assessed. City ofMoorpark Parks Maintenance and Recreation Improvement District 04108199 Engineer's Report, Fiscal Year 1999 -00, by Shilts Consultants, Inc. Page 23 000261 IX Appendix B — Article XIIID of the California Constitution (Proposition 218) Proposition 218 was approved by voters as a Constitutional Amendment on November 6, 1996. It became Article XIIIC and Article XIIID of the California State Constitution and has imposed additional requirements for assessment districts. Following is a summary of the Article. CALIFORNIA CONSTITUTION ARTICLE 13D (ASSESSMENT AND PROPERTY - RELATED FEE REFORM) SECTION 1. Application. Notwithstanding any other provision of law, the provisions of this article shall apply to all assessments, fees and charges, whether imposed pursuant to state statute or local government charter authority. Nothing in this article or Article XIIIC shall be construed to: (a) Provide any new authority to any agency to impose a tax, assessment, fee, or charge. (b) Affect existing laws relating to the imposition of fees or charges as a condition of Property development. (c) Affect existing laws relating to the imposition of timber yield taxes. CALIFORNIA CONSTITUTION ARTICLE 13D (ASSESSMENT AND PROPERTY - RELATED FEE REFORM) SEC. 2. Definitions. mss, As used in this article: (a) "Agency" means any local government as defined in subdivision (b) of Section 1 of Article XIIIC. (b) "Assessment" means any levy or charge upon real property by an agency for a special benefit conferred upon the real property. "Assessment" includes, but is not limited to, "special assessment," "benefit assessment," "maintenance assessment" and "special assessment tax." (c) "Capital cosy' means the cost of acquisition, installation, construction, reconstruction, or replacement of a permanent public improvement by an agency. (d) "District" means an area determined by an agency to contain all parcels which will receive a special benefit from a proposed public improvement or property- related service. (e) "Fee" or "charge" means any levy other than an ad valorem tax, a special tax, or an assessment, imposed by an agency upon a parcel or upon a person as an incident of property ownership, including a user fee or charge for a property related service. City ofMoorpark Parks Maintenance and Recreation Improvement District 04108199 Engineer's Report, Fiscal Year 1999 -00, by Shilts Consultants, Inc. page 24 000262 (f) ' Maintenance and operation expenses" means the cost of rent, repair, replacement, rehabilitation, fuel, power, electrical current, care, and supervision necessary to properly operate and maintain a permanent public improvement. (g) Property ownership" shall be deemed to include tenancies of real property where tenants are directly liable to pay the assessment, fee, or charge in question. (h) "Property- related service" means a public service having a direct relationship to property ownership. (i) "Special benefit" means a particular and distinct benefit over and above general benefits conferred on real property located in the district or to the public at large. General enhancement of property value does not constitute "special benefit." CALIFORNIA CONSTITUTION ARTICLE 13D (ASSESSMENT AND PROPERTY - RELATED FEE REFORM) SEC. 3. Property Taxes, Assessments, Fees and Charges Limited. (a) No tax, assessment, fee, or charge shall be assessed by any agency upon any parcel of property or upon any person as an incident of property ownership except: (1) The ad valorem property tax imposed pursuant to Article XIII and Article XIIIA. (2) Any special tax receiving a two- thirds vote pursuant to Section 4 of Article XIIIA. (3) Assessments as provided by this article. (4) Fees or charges for property related services as provided by this article. (b) For purposes of this article, fees for the provision of electrical or gas service shall not be deemed charges or fees imposed as an incident of property ownership. CALIFORNIA CONSTITUTION ARTICLE 13D (ASSESSMENT AND PROPERTY - RELATED FEE REFORM) SEC. 4. Procedures and Requirements for All Assessments. (a) An agency which proposes to levy an assessment shall identify all parcels which will have a special benefit conferred upon them and upon which an assessment will be imposed. The proportionate special benefit derived by each identified parcel shall be determined in relationship to the entirety of the capital cost of a public improvement, the maintenance and operation expenses of a public improvement, or the cost of the property related service being provided. No assessment shall be imposed on any parcel which exceeds the reasonable cost of the proportional special benefit conferred on that parcel. Only special benefits are assessable, and an agency shall separate the general benefits from the special benefits conferred on a parcel. Parcels within a district that are owned or used by any agency, the State of California or the United States shall not be exempt from assessment unless the agency can demonstrate by clear and convincing evidence that those publicly owned parcels in fact receive no special benefit. City ofMoorpark Parks Maintenance and Recreation Improvement District 04108199 Engineer's Report, Fiscal Year 1999 -00, by Shilts Consultants, Inc. Page 25 000263 (b) All assessments shall be supported by a detailed engineer's report prepared by a registered professional engineer certified by the State of California. (c) The amount of the proposed assessment for each identified parcel shall be calculated and the record owner of each parcel shall be given written notice by mail of the proposed assessment, the total amount thereof chargeable to the entire district, the amount chargeable to the owner's particular parcel, the duration of the payments, the reason for the assessment and the basis upon which the amount of the proposed assessment was calculated, together with the date, time, and location of a public hearing on the proposed assessment. Each notice shall also include, in a conspicuous place thereon, a summary of the procedures applicable to the completion, return, and tabulation of the ballots required pursuant to subdivision (d), including a disclosure statement that the existence of a majority protest, as defined in subdivision (e), will result in the assessment not being imposed. (d) Each notice mailed to owners of identified parcels within the district pursuant to subdivision (c) shall contain a ballot which includes the agency's address for receipt of the ballot once completed by any owner receiving the notice whereby the owner may indicate his or her name, reasonable identification of the parcel, and his or her support or opposition to the proposed assessment. (e) The agency shall conduct a public hearing upon the proposed assessment not less than 45 days after mailing the notice of the proposed assessment to record owners of each identified parcel. At the public hearing, the agency shall consider all protests against the proposed assessment and tabulate the ballots. The agency shall not impose an assessment if there is a majority protest. A majority protest exists if, upon the conclusion of the hearing, ballots submitted in opposition to the assessment exceed the ballots submitted in favor of the assessment. In tabulating the ballots, the ballots shall be weighted according to the proportional financial obligation of the affected property. (f) In any legal action contesting the validity of any assessment, the burden shall be on the agency to demonstrate that the property or properties in question receive a special benefit over and above the benefits conferred on the public at large and that the amount of any contested assessment is proportional to, and no greater than, the benefits conferred on the property or properties in question. (g) Because only special benefits are assessable, electors residing within the district who do not own property within the district shall not be deemed under this Constitution to have been deprived of the right to vote for any assessment. If a court determines that the Constitution of the United States or other federal law requires otherwise, the assessment shall not be imposed unless approved by a two- thirds vote of the electorate in the district in addition to being approved by the property owners as required by subdivision (e). City ofMoorpark Parks Maintenance and Recreation Improvement District 04108199 Engineer's Report, Fiscal Year 1999 -00, by Shilts Consultants, Inc. Page 26 000264 CALIFORNIA CONSTITUTION ARTICLE 13D (ASSESSMENT AND PROPERTY - RELATED FEE REFORM) SEC. 5. Effective Date. Pursuant to subdivision (a) of Section 10 of Article II, the provisions of this article shall become effective the day after the election unless otherwise provided. Beginning July 1, 1997, all existing, new, or increased assessments shall comply with this article. Notwithstanding the foregoing, the following assessments existing on the effective date of this article shall be exempt from the procedures and approval process set forth in Section 4: (a) Any assessment imposed exclusively to finance the capital costs or maintenance and operation expenses for sidewalks, streets, sewers, water, flood control, drainage systems or vector control. Subsequent increases in such assessments shall be subject to the procedures and approval process set forth in Section 4. (b) Any assessment imposed pursuant to a petition signed by the persons owning all of the parcels subject to the assessment at the time the assessment is initially imposed. Subsequent increases in such assessments shall be subject to the procedures and approval process set forth in Section 4. (c) Any assessment the proceeds of which are exclusively used to repay bonded indebtedness of which the failure to pay would violate the Contract Impairment Clause of the Constitution of the United States. (d) Any assessment which previously received majority voter approval from the voters voting in an election on the issue of the assessment. Subsequent increases in those assessments shall be subject to the procedures and approval process set forth in Section 4. CALIFORNIA CONSTITUTION ARTICLE 13D (ASSESSMENT AND PROPERTY - RELATED FEE REFORM) SEC. 6. Property Related Fees and Charges. (a) Procedures for New or Increased Fees and Charges. An agency shall follow the procedures pursuant to this section in imposing or increasing any fee or charge as defined pursuant to this article, including, but not limited to, the following: (1) The parcels upon which a fee or charge is proposed for imposition shall be identified. The amount of the fee or charge proposed to be imposed upon each parcel shall be calculated. The agency shall provide written notice by mail of the proposed fee or charge to the record owner of each identified parcel upon which the fee or charge is proposed for imposition, the amount of the fee or charge proposed to be imposed upon each, the basis upon which the amount of the proposed fee or charge was calculated, the reason for the fee or charge, together with the date, time, and location of a public hearing on the proposed fee or charge. (2) The agency shall conduct a public hearing upon the proposed fee or charge not less than 45 days after mailing the notice of the proposed fee or charge to the record owners of each identified parcel upon which the fee or charge is proposed for imposition. At the public hearing, the agency shall consider all protests against the proposed fee or charge. If written protests City ojMoorpark Parks Maintenance and Recreation Improvement District Engineer's Report, Fiscal Year 1999 -00, by Shilts Consultants, Inc. Page 99 Page 27 000265 against the proposed fee or charge are presented by a majority of owners of the identified parcels, the agency shall not impose the fee or charge. (b) Requirements for Existing, New or Increased Fees and Charges. A fee or charge shall not be extended, imposed, or increased by any agency unless it meets all of the following requirements: (1) Revenues derived from the fee or charge shall not exceed the funds required to provide the property related service. (2) Revenues derived from the fee or charge shall not be used for any purpose other than that for which the fee or charge was imposed. (3) The amount of a fee or charge imposed upon any parcel or person as an incident of property ownership shall not exceed the proportional cost of the service attributable to the parcel. (4) No fee or charge may be imposed for a service unless that service is actually used by, or immediately available to, the owner of the property in question. Fees or charges based on potential or future use of a service are not permitted. Standby charges, whether characterized as charges or assessments, shall be classified as assessments and shall not be imposed without compliance with Section 4. (5) No fee or charge may be imposed for general governmental services including, but not limited to, police, fire, ambulance or library services, where the service is available to the public at large in substantially the same manner as it is to property owners. Reliance by an agency on any parcel map, including, but not limited to, an assessor's parcel map, may be considered a significant factor in determining whether a fee or charge is imposed as an incident of property ownership for purposes of this article. In any legal action contesting the validity of a fee or charge, the burden shall be on the agency to demonstrate compliance with this article. (c) Voter Approval for New or Increased Fees and Charges. Except for fees or charges for sewer, water, and refuse collection services, no property related fee or charge shall be imposed or increased unless and until that fee or charge is submitted and approved by a majority vote of the property owners of the property subject to the fee or charge or, at the option of the agency, by a two- thirds vote of the electorate residing in the affected area. The election shall be conducted not less than 45 days after the public hearing. An agency may adopt procedures similar to those for increases in assessments in the conduct of elections under this subdivision. (d) Beginning July 1, 1997, all fees or charges shall comply with this section. c,ety of Moorpark Parks Maintenance and Recreation Improvement District 04108199 Engineer's Report, Fiscal Year 1999 -00, by Shilts Consultants, Inc. page 28 000266 X. Appendix C - 1999 -00 ASSESSMENT ROLL An Assessment Roll (a listing of all parcels assessed within the Park Maintenance and Improvement District and the amount of the assessment) will be filed with the City Clerk and is, by reference, made part of this report and is available for public inspection during normal office hours. Each lot or parcel listed on the Assessment Roll is shown and illustrated on the latest County Assessor records and these records are, by reference made part of this report. These records shall govern for all details concerning the description of the lots or parcels. City of Moorpark Parks Maintenance and Recreation Improvement District 04108199 Engineer's Report, Fiscal Year 1999 -00, by Shifts Consultants, Inc. page 29 000267 l l'C CL�V 1v11F Y1� C- ITEM • CITY OF MOORPARK CITY COUNCIL AGENDA REPORT TO: The Honorable City Council FROM: Mary K. Lindley, Director of Community Services DATE: April 9, 1999 (CC Meeting of April 14, 1999) SUBJECT: Consider Approval of Resolution No. 99 -_, the Assessment Engineer's Report, the Parks proving Recreation Maintenance and Improvement Assessment District Mail Ballot, and Date for Public Hearing SUMMARY The City Council is being asked to approve the Assessment Engineer's Report (bound and separately provided with Agenda Report), which contains the methodology and formula for apportioning the property assessment. Additionally, the Council is being presented with the proposed ballot for approval, which will be mailed to all Moorpark property owners. The ballot contains information about the purpose and use of the assessment and the assessment rate. Property owners have 45 days in which to return their ballots. The ballots will be tabulated at the Public Hearing tentatively scheduled for June 16. This is not an election. Under SB 919, which was adopted in 1997 and serves to prescribe specific procedures of Proposition 218, Section 2. (amending the Elections Code), it states that "when an assessment ballot proceeding is conducted by mail ... the following rules shall apply: (A) The proceeding shall be denominated an `assessment ballot proceeding' rather than an election." The mail ballot process is very similar to the process used by the City with the establishment and maintenance Of its former Park Maintenance Assessment District (AD85 -1). The Council has indicated its intent to initiate an assessment and property owners are provided with an opportunity to support or oppose the proposed action. If a majority of the ballots 111 .: Park Assessment District Page 2 returned are in support of the assessment, the City Council will have the authority to proceed with the formation of the Parks and Recreation Maintenance and Improvement Assessment District. BACKGROUND In 1985, Assessment District 85 -1 was formed for the purpose of operating and maintaining parks. The District was disbanded in June, 1998, after the implementation of Proposition 218 and its new balloting requirements. On November 4, 1998, the City Council indicated its intent to re- establish the Parks Assessment District. The Council also awarded a contract to Shilts Consultants to prepare the required Engineer's Report and to provide mail ballot planning and implementation services at a cost not to exceed $55,000 ($14,000 of which is for administration if the City proceeds with the formation of the assessment district). On February 3, 1999, the City Council adopted a Resolution initiating the proceedings for the formation of a Parks and Recreation Maintenance and Improvement District. Adoption of the Resolution was required by Article XIIID of the California Constitution and the Landscape and Lighting Act of 1972 of the Streets and Highway Code. With the adoption of the Resolution, the Council indicated its intent to re- establish the Park Assessment. Under Proposition 218, property owners will now be given an opportunity to express support or opposition to the assessment proposed by the City Council. DISCUSSION The City Council is being presented with the Engineer's Report for consideration and approval. By approving the Engineer's Report, the Council will be establishing the assessment rate, the formula used to spread the assessment, and the City's contribution for the maintenance and improvement of parks. The proposed boundaries for the Parks and Recreation Maintenance and Improvement District contains all properties within the City's boundaries. The proposed Assessment District includes all existing 14 City parks. It is intended to include the proposed park planned for the Specific Plan 92 -1 (Carlsberg) once it has been constructed \ \MOR— PRI —SERV \home folders \MLindley \Assessment \engineer report.agd.doc 000269 Park Assessment District Page 3 and the maintenance period has expired. Additionally, the property within Specific Plan 92 -1 would be assessed as would all other properties. The Engineer's Report contains a determination regarding the percentage of benefit deemed "special" and the percentage deemed "general generated from the maintenance and improvement of City parks and recreation facilities. The percentage figure identified by the Engineer is 25 percent "general" benefit and 75 percent "special" benefit. This percentage is then applied to the total Parks budget. Under Proposition 218, the City can only assess property owners for the portion of the budget related to %special" benefits. Although 75 percent is identified as providing %special" benefit, it is proposed that property owners be assessed for approximately 52 percent of the total park maintenance budget to maintain a Single Family Equivalent (SFE) rate that is close in amount to the rate of the former Park Assessment District (AD85 -1). Additionally, the Report identifies all by type. A value has been assigned for with single family residential having a for all other property types is assigner equivalent value is based on a formula number of people who could potentially otherwise use a property. Specifically, values as follows: properties in Moorpark each type of property, value of 1.00. A value based on the SFE. The that uses the average live on, work at, or the Engineer finds SFE Single Family Residential 1.00 Condominium 80 Multi- Family Residential .78 Mobile Homes .65 Commercial .70 Office 1.90 Shopping Center .70 Industrial .70 Self Storage or Parking Lot .03 (per dwelling unit) w w w w w w (per 1/5 of acre) w w w w w w w w In regards to undeveloped vacant property, the Engineer is recommending a three tiered rate structure. Vacant property will be assessed at a single family equivalent of .25 SFE. Once a development application and engineering plans have been submitted for vacant property, it will be assessed at a single family equivalent of .35 of the developed rate, and vacant \ \MOR PRI_SERV \home folders \MLindley \Assessment \engineer report.agd.doc 0002'70 Park Assessment District Page 4 property for which development has been approved will have a single family equivalent of .65 of the developed rate until fully developed. Proposed Park Maintenance and Improvement Budget Addressed in the Engineer's Report and separately attached to the Agenda Report (Attachment C) is the proposed FY 1999/00 Park Maintenance and Improvement Budget. Total proposed expenditures are approximately $866,914. The Engineer's Report addresses the estimated revenue to be generated by the assessment (approximately $447,184) if the assessment rate is approved as recommended. Additionally, the report identifies the City's contribution, which includes a portion of the expenditures associated with "special" benefits and all expenditures associated with "general" benefits. This proposed contribution equals approximately 48 percent of the total budget and would be funded from the General Fund and the Park Improvement Fund. This is recommended in an effort to keep the SFE at about the same level as the former Assessment District rate. For comparison, the FY 1998/99 park budget was approximately $659,000, of which approximately $614,800 was for operational expenditures and funded from the City's General Fund. The remaining budget amount ($85,200) was for capital expenditures and funded from the Park Improvement Fund. These figures exclude the AVCP tennis courts. The proposed FY 1999/00 budget figure of $866,914 includes some expenditures that, in the past, were funded from the General Fund in other division budgets, and therefore they do not represent new expenditures. Additionally there is approximately $124,000 for capital improvements which is proposed to come from the Park Improvement Fund, except for a contribution of $20,000 from the General Fund. The City Council is not being asked to formally adopt the Park Maintenance budget at this time. There will be an opportunity to make some adjustments as a part of the regular budget process. However, any future budget adjustments cannot impact the assessment amount. As in the past, expenditures for each park are separately identified in the budget. For the most part, the budget is \ \MOR_PRI_SERV \home folders \MLindley \Assessment \engineer report.agd.doc 0002'71 e Park Assessment District Page 5 consistent with past park maintenance budgets with some exceptions. Funding has been added to reopen Monte Vista Nature Park. It is estimated that operational costs for Monte Vista is approximately $6,000. Additionally, it is proposed that the level of service provided under the City's landscape maintenance contract be re- established to include fertilizations six times a year and service on days when it rains (estimated to cost $15,000). The City Council made cuts in these areas in FY 1998/99 in an attempt to address the loss of the original park assessment. Also, it is recommended that some funds be budgeted to perform landscape enhancements, above and beyond routine maintenance, to replace dead and damaged vegetation when necessary. The City has not specifically budgeted for this type of work in the past Additionally, $4,140 has been included for the maintenance and operation of Villa Campesina Park. Villa Campesina property owners currently pay a property assessment of $60.00 annually, through the Landscape Parkway and Median Assessment District (AD84 -2) as a Zone of Benefit, to maintain and operate the Park. Previous action by the City Council directed that in the event a Park Assessment District was formed, the City would include Villa Campesina Park. If the proposed Park and Recreation Maintenance and Improvement Assessment District is approved, Villa Campesina Park will be removed from AD84 -21 and the current $60.00 assessment paid by the Villa Campesina property owners will be discontinued. I The Park Maintenance budget contains $4,300 for costs associated with the Community Center Park. In the past, the Community Center Park was been included in the City's facilities budget and funded from the General Fund. Staff believes it is more appropriate to fund the Park in the Park Maintenance Budget. This does not represent a new expense, but simply a transfer from another budget account. The proposed budget contains a portion of the director's and Department secretary's salary (25% each). This expenditure (approximately $30,000) is not new, but has simply been moved from the Community Services Administration budget to parks budget to better isolate the cost of maintaining parks. It does not create an additional cost to the City's overall budget. In addition, $20,000 has been included to the parks budget to cover City overhead costs. Expenses for City overhead are distributed \ \MOR_PRI_SERV \home folders \MLindley \Assessment \engineer report.agd.doc -- 000272 Park Assessment District Page 6 to each Department based on the number of employees. A portion Of Community Service's overhead associated with park maintenance has been calculated and assigned to that division. Again, this is not a new expenditure. In previous years, this expenditure was assigned to the Community Services Administration budget. Also, in the proposed budget $124,000 has been designated for park improvements. Based on the recommendation of the Parks and Recreation Commission and staff, it is proposed that FY 1999/00 capital improvements include playground equipment replacement for Peach Hill and Campus Canyon Parks, and the replacement of wooden benches at.Griffin Park. It is proposed by staff, that funds in the amount of $74,000 be transferred from the Park Improvement Fund for Zone 3 (Campus Canyon and Griffin Parks) and $30,000 from Zone 4 (Peach Hill Park) to the Park Maintenance Budget to assist in funding a portion of the capital improvements. Proceeding with park improvements is an important component of the Assessment District's activities. A successful Assessment District will allow the City the ability to provide park amenities that meet safety and ADA standards, as well as meet the on -going demand for sports fields and courts, open space, and family picnic facilities. Since a number of the City's Park Improvement Zones have no available funding and no new funding is anticipated in zones where build -out has occurred, the City must identify other ongoing revenue sources (staff is also looking at the feasibility of redrawing zone boundaries). It is appropriate that the Park Maintenance and Improvement Assessment District be the source for a portion of future improvements. Lastly, the cost for the assessment engineer has been included in the park budget ($55,000). Under Proposition 218, assessment formation and administration costs can be included in the assessment levied. In future years, cost associated with administration of the park assessment should decrease by approximately $30,000. \ \MOR_PRI_SERV \home folders \MLindley \Assessment \engineer report.agd.doc 000273 Park Assessment District Page 7 PROPOSED PARK BUDGET ADDITIONS EXPENDITURE RECAP Reopen Monte Vista Park $ 6,000 Re- establish rain 15,000 days /fertilizations Villa Campesina Park 4,140 Community Center Park 41300 25% director's and secretary's 30,000 salary City overhead 20,000 Park Improvements 124,000 Assessment Engineer 55 000 ' Total $258,440 While the total proposed additions to the Park Maintenance budget are $258,440, by implementing some efficiencies, the proposed FY 1999/00 budget only represents an actual increase of approximately $207,914 over the FY 1998/99 budget. Of that amount, $54,300 represents expenditures that have been moved from other general fund budgets, and therefore they have no net increase on the City's total budget. It is also proposed that $104,000 from the Park Improvement Fund be transferred to assist with the proposed park improvements. Assessment Rate Under Proposition 218, the City only can assess property owners for a portion of the maintenance and improvement of parks that generates a "special" benefit. The portion determined to generate a "general" benefit must be funded from sources other than Assessment District revenue. Based on the Engineer's finding that 25 percent of the benefits conferred by the maintenance and improvement of parks is 'general" in nature, and 75 percent is "special ", the potential amount of the proposed \ \MOR PRI_SERV \home — folders \MLindley \Assessment \engineer report.agd.doc 0002'74 Park Assessment District Page 8 budget that could legally be assessed to property owners under Proposition 218 is $650,185. If property owners were fully assessed for this amount, the SFE would be approximately $56.70. Historically, the City has contributed funds to park maintenance activities, as was done with the former Park Assessment District, in an effort to minimize the property assessment amount. Prior to disbanding the Park Assessment District in June 1998, property owners were paying a SFE of $41.16. The Engineer is recommending that the City Council approve a rate of $39.00 per SFE. If approved, this rate would generate approximately $447,184. Under this proposal, the City would cover the remaining portion of the budget associated with the "special" benefit, approximately $203,001, in addition to the "general" benefit portion of $216,729. This would make the City's total contribution $419,730. As stated above, $158,300 of the City's total contribution results in no net increase to the General Fund since $54,300 represents expenditures that will be transferred from another General Fund budget and it is proposed that $104,000 in expenditures be funded from the Park Improvement Fund. This would bring the City's total estimated contribution from the General Fund to approximately $261,430. PROPOSED BUDGET /FUNDING RECAP Total Park Maintenance Budget $866,914 Less Amount to be Assessed (520) <4471184> Difference (48 0) $419,,730 Less Park Improvement Funds <1041000> Less Transfers from other divisions < 54,300> Remaining balance to be funded by General Fund $261,430 Prior to disbanding the original Park Maintenance Assessment District, the City's General Fund contributed approximately \ \MOR_PRI_SERV \home folders \MLindley \Assessment \engineer report.agd.doc 0002'75 Park Assessment District Page 9 $170,000 from the General Fund towards park maintenance activities. When park related expenditures from other General Fund divisions proposed for transfer are included, past General Fund contributions were actually closer to $220,000. In FY 1998/99, the General Fund covered all park maintenance operational activities (non capital) at a cost of approximately $614,800. Lastly, the Engineer's Report includes a recommendation that the assessment rate be subject to an annual adjustment tied to the Engineering News Record Construction Cost Index for the Los Angeles Area as of December of each year. The proposed adjustment would be capped not to exceed 3 percent annually. Assessment District Ballot The Ballot (Attachment B), which the Council is being asked to approve, meets all of the legal requirements of Proposition 218. Information is provided about the assessment rate, how the assessment rate was calculated, purpose of the assessment, method of voting and how votes will be tabulated (weighted), and the date for the Public Hearing (June 16) . The City Council should note that if significant changes are made to the Engineer's Report requiring changes to the mail ballot (changes to the rate formula and methodology), it is conceivable that Shilts Consultants will be unable oto prepare the ballot within the timeline that would allow the City to tabulate the ballots on June 16. In that case, the Council would need to select an alternative date to hold the Public Hearing. RECOMMENDATION Staff recommends that the City Council adopt Resolution No. 99- (Attachment A) approving the Engineer's Report and assessment amount contained within, mail ballot, and Notice of Public Hearing. \ \MOR PRI_SERV \home folders \MLindley \Assessment \engineer report.agd.doc 000276