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HomeMy WebLinkAboutAGENDA REPORT 2000 0607 CC REG ITEM 10ATO: FROM: DATE: CITY OF MOORPARK CITY COUNCIL AGENDA REPORT The Honorable City Council ITEM % 0i...�._...� Mary K. Lindley, Director of Community Services June 1, 2000 (CC Meeting of June 7, 2000) SUBJECT: Consider Approval of Resolution No. 2000 -_, Approving the Preliminary Assessment Engineer's Report, the Parks and Recreation Maintenance and Improvement Assessment District Levy Amount, and Setting the Date for the Public Hearing for June 21, 2000 SUMMARY The City Council is being asked to adopt the attached resolution, approving the Preliminary Assessment Engineer's Report (bound and separately provided with Agenda Report), which contains the methodology and formula for apportioning the property assessment. Additionally, the resolution identifies the date for the Public Hearing to consider the levy of the assessment for FY 2000/01. BACKGROUND In July 1999, the City successfully established an assessment district for the maintenance and improvement of City parks. The District was initiated by the Council to provide funding in place of AD 85 -1 (Park Maintenance Assessment District), which was disbanded in July 1998 as a result of Proposition 218. The current Maintenance District is based on a "special" assessment. This means that the City assesses property owners for that portion of park maintenance and improvement activities that generate a "special" benefit. All activities that generate a M:\MLindley\Assessment \en_ gineer report 2000 ccagd.doc 0,. Park Assessment Engineer's Rpt Page 2 "general" benefit must be funded from non assessment revenues (typically General Fund and Park Improvement Fund). The Park Maintenance and Improvement Assessment District includes all existing 14 City parks and the park currently under construction in Carlsberg Specific Plan. The amount of the assessment levied to property may only increase by the Cost of Living factor for the Los Angeles Metropolitan area, and not more than 3 percent in any year. On February 16, 2000, the City Council adopted Resolution No. 2000 -1701, indicating its intent to continue the assessment for FY 2000/01 and directing the preparation of the Engineer's Report. On that date, the City selected Shilt's Consultants to prepare the report. DISCUSSION The City Council is being presented with the preliminary 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 General Fund and Park Improvement Fund (PIF) contributions 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 Miller Park under construction in Specific Plan 92 -1 (Carlsberg) once it has been completed and the maintenance period has expired. Additionally, the properties within Specific Plan 92 -1 would be assessed as would all other properties within the City. 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 M: \MLindley \Assessment \engineer report 2000 ccagd.doc Park Assessment Engineer's Rpt Page 3 related to "special" benefits. Although 75 percent is identified as providing "special" benefit, and consistent with last year, it is proposed that property owners be assessed for approximately 51 percent of the total park maintenance budget. Additionally, the Report identifies all properties in Moorpark by type. A value has been assigned for each type of property, with single family residential having a value of 1.00. A value for all other property types is assigned based on the SFE. The equivalent value is based on a formula that uses the average number of people who could potentially live on, work at, or otherwise use a property. Specifically, the Engineer finds SFE values as follows: 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) (per 1/5 of acre) In regards to undeveloped vacant property, the Engineer has developed 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 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 is the proposed FY 2000/01 Park Maintenance and Improvement Budget. Total proposed expenditures are approximately $909,409. This figure excludes $130,866 in indirect costs identified in the FY 2000/01 Budget as "Cost Plan" expenditures, which will be more fully discussed below. With "Cost Plan" expenditures included, the total Park Maintenance Budget is $1,040,275. M : \MLindley \Assessment \engineer report 2000 ccagd.doc :m Park Assessment Engineer's Rpt Page 4 The proposed budget may change as the Council conducts its budget deliberations. As long as these changes do not impact the ratio between special and general activities, such that the special activities comprise a larger percent, these changes can be accommodated in the final Report. The Engineer's Report addresses the estimated revenue to be generated by the assessment (approximately $468,000) if the assessment rate is approved as recommended. The anticipated revenue figure may also change slightly upward, if any previously unidentified properties are identified. Additionally, the report identifies the non assessment contribution (General Funds and PIF), which includes a portion of the expenditures associated with "special" benefits and all expenditures associated with "general" benefits. For comparison, the FY 1999/00 park maintenance expenditure budget was approximately $925,188 (not including the AVCP tennis court construction), of which $771,941 was for operations and the remaining $153,247 was for capital improvements. Approximately $430,000 was collected in park assessments. The non assessment FY 1999/00 contributions to the park maintenance budget was $495,188, which was comprised of approximately $367,641 from the General Fund ($25,700 for capital and the remaining for operations) and $127,547 from the PIF (QUMIBY fees) . The proposed FY 2000/01 budget figure of $909,409 includes $780,109 for operations and $129,300 for capital improvements. Of the operational expenditures, it is estimated that $468,000 will be funded from collected assessments. It is proposed that the remaining, approximately, $312,109 in operational expenditures be funded by the General Fund. All of the capital expenditures ($129,300) will be funded by the PIF from the appropriate Park Improvement Zones. M: \MLindley \Assessment \engineer report 2000 ccagd.doc 060,120 Park Assessment Engineer's Rpt Page 5 PARK MAINTENANCE BUDGET EST. FY 99/00 PROPOSED FY 00/01 EXPENDITURES Operations $771,941 $780,109 Capital $153,247 $129,300 Total Expend $925,188 $909,409 FUNDING SOURCE Assessment $430,000 $468,000 General Fund $367,641 $312,109 Park Impr. $127,547 $129,300 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. While costs for general materials and utilities has gone up, the total proposed FY 2000/01 park maintenance budget(including capital items) represents a decrease of $15,779 over last year's budget. The major reason for this is the significant decrease in assessment engineer costs. Last year the City's budget included $53,300 for assessment engineering to establish the assessment district. In FY 2000/01 $11,000 has been budgeted for assessment engineering administration, a difference of $42,300. There are no new programs or items contained in the proposed FY 2000/01 budget. However, some park landscape enhancements are planned to replace lost or damaged plant material, which has not been specifically addressed in past years. A larger percent of the City's overhead cost allocations have also been assigned to park maintenance to reflect the true impact of the division on the General Fund. M: \MLindley \Assessment \engineer report 2000 ccagd.doc 0 0 1 0` Park Assessment Engineer's Rpt Page 6 While not addressed in the Engineer's Report and not identified in the total budget figures presented in this Agenda Report, the Council should note that the proposed Park Maintenance Division Budget (2400) contains park related City "cost plan" charges ($130,866) which are new to the division, but not new to the City's General Fund budget. In other words, the City incurred these costs last year, elsewhere in the General Fund budget. For FY 2000/01, it is proposed that the "cost plan" costs related to park maintenance activities be charged directly in the Park Maintenance Division budget. The end result should be not net increase to the General Fund. The "cost plan" will be further discussed during budget deliberations. There are fewer proposed capital improvement projects in the proposed FY 2000/01 budget in comparison to FY 1999/00. The proposed FY 1999/00 capital expenditures include new playground equipment for Campus Park, replacement gazebos for Poindexter Park, and installation of poured -in -place rubber surfacing for Glenwood Park. The capital expenditures will be funded by the appropriate Park Improvement Zone Fund, not General Funds nor park assessment revenues. Assessment 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. As stated previously, the Engineer's findings indicate that 25 percent of the benefits conferred by the maintenance and improvement of parks is "general" in nature, and 75 percent is "special ". 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. Therefore, when initially proceeding with the establishment of the park maintenance assessment district, the Council elected to fund a greater share of the expenses with City funds to reduce the impact to property owners. The Council also elected to place an annual rate M: \MLindley \Assessment \engineer report 2000 ccagd.docz.tr Park Assessment Engineer's Rpt Page 7 adjustment cap on the assessment based on the CIP increase, but no more than 3 percent. The initial SFE rate set in FY 1999/00 was 39.00. The CIP adjustment for the Los Angeles Metropolitan area for the twelve month period between December 1998 and December 1999 is 2.3 percent. This represents an increase of $0.90, which brings the total annual SFE assessment to $39.90. It is recommended that the Council approve the CIP adjustment of 2.3 percent. This action is reflected in the Engineer's Report and the proposed FY 2000/01 Budget. Based on this action, the City's contribution would be $441,409 ($442,975 General Fund and $129,300 Park Improvement) and total assessment contributions would be $468,000. This represents a ratio of 49 percent City funded and 51 percent assessment funded, which is far greater than the established 25 %/75% split. Public Hearing The continuation of the Parks Maintenance and Improvement District and rate adjustment requires a public hearing to be held prior to the annual levy of assessment for the purpose of receiving input and to hear any protest to the proposed assessment. Additionally, the Notice cites the assessment amounts set forth in the Engineer's Report. The Notice will be published and posted as required by law. RECOMMENDATION Adopt Resolution No. 2000- (Attachment A) approving the preliminary Engineer's Report and assessment amount contained within, and setting the public hearing date. M: \MLindley \Assessment \engineer report 2000 ccagd.doc 000, :_3 RESOLUTION NO. 2000- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MOORPARK, CALIFORNIA, OF INTENTION TO LEVY ASSESSMENTS FOR FISCAL YEAR 2000 -01, PRELIMINARILY APPROVING ENGINEER'S REPORT, AND PROVIDING FOR NOTICE OF HEARING FOR THE PARKS AND RECREATION MAINTENANCE AND IMPROVEMENT DISTRICT WHEREAS, on July 15, 1999, by its Resolution No. 99- 1625, after receiving a weighted majority of ballots in support of the proposed assessment, this Council ordered the formation of, and levied the first assessment within the City of Moorpark for, the Parks and Recreation Maintenance and Improvement District (the "Assessment District ") pursuant to the provisions of Article XIIID of the California Constitution, and the Landscaping and Lighting Act of 1972 (the "Act ") , Part 2 of Division 15 of the California Streets and Highways Code (commencing with Section 22500 thereof); and WHEREAS, by Resolution No. 2000 -1701, the City Council ordered the preparation of an Engineer's Report,for the Parks and Recreation Maintenance and Improvement District (the "District ") for fiscal year 2000 -01; and WHEREAS, pursuant to said Resolution, the Engineer's Report was prepared by Shilts Consultants, Inc., Engineer of Work, in accordance with Section 25210.1 et.seq., of the California Government Code (the "Report ") and Article XIIID of the California Constitution; and WHEREAS, said Engineer's Report was filed with the City Clerk and the City Council has reviewed the Report and wishes to take certain actions relative to said Report. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF MOORPARK DOES HEREBY RESOLVE AS FOLLOWS: SECTION 1. The Report for "PARKS AND RECREATION MAINTENANCE AND IMPROVEMENT ASSESSMENT DISTRICT ", on file with the City Clerk, has been duly considered by the Moorpark City Council and is hereby deemed sufficient and approved. The Report shall stand as the Engineer's Report for all subsequent proceedings under, and pursuant to, the foregoing resolution. SECTION 2. It is the intention of this Council to levy and collect assessments within the Assessment District for fiscal year 2000 -01. Within the Assessment District, the existing and proposed improvements, and any substantial changes proposed to be made to the existing improvements, are generally described as the installation, maintenance and servicing of public facilities, including but not limited to, landscaping, sprinkler systems, park 0 0 .,�E 4 Resolution No. 2000 - Page 2 grounds, park facilities, landscape corridors, ground cover, shrubs and trees, street frontages, playground equipment and hardcourt areas, senior and community centers, drainage systems, lighting, fencing, entry monuments, basketball courts, tennis courts, running tracks, 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. Installation means the construction of recreational improvements, including, but not limited to, land preparation, such as grading, leveling, cutting and 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 said improvements, including repair, removal, or replacement of all or part of any improvement; providing for the life, growth, health and beauty of landscaping; and cleaning, sandblasting and painting of walls and other improvements to remove or cover graffiti. Servicing means the furnishing of electric current or energy for the operation or lighting of any improvements, and water for irrigation of any landscaping or the maintenance of any other improvements. SECTION 3. The Assessment District consists of the lots and parcels shown on the boundary map of the Assessment District on file with the City Clerk, and reference is hereby made to such map for further particulars. SECTION 4. Reference is hereby made to the Engineer's Report for a full and detailed description of the improvements, the boundaries of the Assessment District and the proposed assessments upon assessable lots and parcels of land within the Assessment District. The Engineer's Report identifies all parcels which will have a special benefit conferred upon them and upon which an assessment will be imposed. SECTION 5. The assessments are proposed to increase from the previous year's assessments by the amount of the increase in the Los Angeles Area Consumer Price Index, equal to 2.3 %. SECTION 6. Notice is hereby given that on June 21, 2000, at the hour of 6:30 p.m. in the Council Chambers, located at 799 Moorpark Avenue, Moorpark, California 93021, the Council will hold a public hearing to consider the ordering of the improvements and the levy of the proposed assessments. M: \MLindley \Assessment \Prelim approval resolution 2000.doc C Resolution No. 2000 -_ Page 3 SECTION 7. Prior to the conclusion of the hearing, any interested person may file a written protest with the City Clerk, or, having previously filed a protest, may file a written withdrawal of that protest. A written protest shall state all grounds of objection. A protest by a property owner shall contain a description sufficient to identify the property owned by such owner. Such protest or withdrawal of protest should be mailed to Shilts Consultants, Inc., 2300 Boynton Ave., Suite 201, Fairfield, CA 94533. SECTION 8. The City Clerk shall cause a notice of the hearing to be given by publishing a copy of this resolution once, at least ten (10) days prior to the date of the hearing above specified, in a newspaper circulated in the City of Moorpark. SECTION 9. 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 7th day of June, 2000. Patrick Hunter, Mayor ATTEST: Deborah S. Traffenstedt, City Clerk M: \MLindley \Assessment \Prelim approval resolution 2000.doc