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HomeMy WebLinkAboutAGENDA REPORT 2004 0519 CC REG ITEM 10CTO: FROM: DATE: MOORPARK CITY COUNCIL AGENDA REPORT The Honorable City Council aoOA{ Mary K. Lindley, Director of Community Servicesl�/ May 13, 2004 (CC Meeting of May 19, 2004) SUBJECT: Consider Resolution 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 2, 2004 SUMMARY The City Council is being asked to adopt the attached resolution, approving the Assessment Engineer's Report (provided under separate cover), 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 2004/05. 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 "general" benefit must be funded from non - assessment revenues (typically General Fund and Park Improvement Fund). The Park Maintenance and Improvement Assessment District includes 15 improved parks and one undeveloped park located at M:\MLindley\Assessment Dist \engineer report 2 2004 05 ccagd.doc 000117 C Honorable City Council May 19, 2004 Page 2 the southwest corner of Magnolia Street and Charles Street. The amount of the assessment levied to property owners may only increase by the Cost of Living factor (CPI) for the Los Angeles Metropolitan area, and not more than 3 percent in any year. In situations when the CPI exceeds 3 percent, the remaining difference can be carried over to a subsequent year. On February 4, 2004, the City Council adopted Resolution No. 2004 -2167 indicating its intent to continue the assessment for FY 2004/05 and directing the preparation of the Engineer's Report. On that date, the City selected Shilts 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 City's contribution (comprised of General Fund and Park Improvement Fund [PIF]) for the maintenance and improvement of parks. The boundaries for the Parks and Recreation Maintenance and Improvement District contain all properties within the City's incorporated limits. The Assessment District includes all existing 15 City parks, Arroyo Vista Community Center, and the Serenata Trail. 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 park maintenance budget. Under Proposition 218, the City can only assess property owners for the 75 percent portion of the budget related to "special" benefits. Although 75 percent is identified as providing "special" benefit, and consistent with previous years, it is proposed that property owners be assessed for only approximately 28 percent of the total park maintenance budget, which is only a third of the special benefit costs. Appropriations from the General Fund, Park Improvement Fund, Park Bonds and other City funding sources will comprise M: \MLindley \Assessment Dist \engineer report 2 2004 05 ccagd.doc 000177 Honorable City Council May 19, 2004 Page 3 the remaining approximate 72 percent to the total budget for FY 04/05. 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) ,N NN AN \\ AN AN (per 1/5 of acre) AN AN AN \\ \\ AN AN AN In regards to undeveloped vacant property, the Engineer has developed a three - tiered rate structure. Vacant property will be assessed at .25 of its equivalent SFE (for residential, industrial, commercial, etc.). Once a development application and engineering plans have been submitted for vacant property, it will be assessed at its SFE at a rate of .35 of the developed rate, and vacant property for which development has been approved will have a SFE equivalent of .65 of the developed rate for that property type until fully developed. Park Maintenance and Improvement Budget The Engineer's Report addresses the estimated revenue to be generated by the assessment (approximately $551,900) if the assessment rate is approved as recommended. This is approximately $16,000 more in assessment revenue than was anticipated for FY 2003/04. The report also identifies the non - assessment contribution, which is noted in the Report as City Contribution (General Fund and Park Improvement Fund). Consistent with Proposition 218, the City covers all costs M: \MLindley \Assessment Dist \engineer report 2 2004 05 ccagd.doc OOOJL78 Honorable City Council May 19, 2004 Page 4 associated with park maintenance activity expenditures that generate "general" benefits (these activities comprise approximately 25 percent of the budget) . Additionally, the City traditionally covers a significant portion of the cost associated with expenditures that generate "special" benefits. The remaining costs associated with "special" benefits are covered by the revenue collected from the assessed levy. The proposed FY 2004/05 Park Assessment District budget figure of $2,502,806 includes $1,393,379 for operation and maintenance and $1,109,427 for capital improvements. FY 2004/05 Park Asst. District Budget Summary Proposed Expenditures Proposed Funding Operation /Maintenance $1,393,379 Capital Park Projects $1,109,427 Total Expenditure Budget $2,502,806 Assessment Levy $551,900 General Fund $841,497 Park Improvement Fund /Endowment /Park Bond $1,109,409 Total Revenues $2,5021806 The budget figures contained in the Engineer's Report differ slightly from the figures in the budget document that will be adopted by the Council. However, the differences between the two budgets will not effect the assessment levy. Assessment Rate The assessment district was adopted with a CPI cap of 3 percent. However, the approved assessment language allows the City to carry over any difference in the CPI that exceeds 3 percent to the following year, as long as it adheres to the cap in subsequent years. The history of the adjusted assessment levy is as follows: M: \MLindley \Assessment Dist \engineer report 2 2004 05 ccagd.doc 000IL 79 Honorable City Council May 19, 2004 Page 5 Fiscal CIP Period CIP Levy Carryover Year Adjustment Adjustment 2000/01 Dec 1998 - 2.30 2.30 0 Dec 1999 2001/02 Dec 1999 - 3.70 .7% .7% Dec 2000 2002/03 Dec 2000 - 2.10 2.80 0 Dec 2001 2003/04 Dec 2001 - 3.70 30 .7% Dec 2002 2004/05 Dec 2002 - 1.8% 2.5% 0 Dec 2003 The CPI increase calculation pertaining to the FY 2004/05 assessment (December 2002 - December 2003) is 1.8 percent. Combined with the .7 percent carryover from last fiscal year, the total amount of the eligible CPI increase is 2.5 percent, setting the assessment levy at $44.60. This proposed SFE rate adjustment is reflected in the Engineer's Report along with the proposed FY 2004/05 Budget. In summary, based on this action, the City's total non - assessment contribution would be $1,950,906, of which $841,497 would come from the General Fund and $1,109,409 from the other City funding sources including the Park Improvement Fund, Park Bond and the Endowment Fund. This leaves the total contribution from the Park and Recreation Assessment at $551,900, equal to the anticipated revenue. This represents a ratio of 72 percent City funded and 28 percent assessment levy funded. 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. Staff recommends that the Council set the hearing date as June 2, 2004. The Hearing Notice cites the assessment amounts set forth in the Engineer's Report and it will be published and posted as required by law. M: \MLindley \Assessment Dist \engineer report 2 2004 05 ccagd.doc Honorable City Council May 19, 2004 Page 6 STAFF RECOMMENDATION Adopt Resolution No. 2004- Attachment: A - Resolution M: \MLindley \Assessment Dist \engineer report 2 2004 05 ccagd.doc 000181 ATTACHMENT A RESOLUTION NO. 2004 - A RESOLUTION OF INTENTION OF THE CITY COUNCIL OF THE CITY OF MOORPARK, CALIFORNIA TO LEVY ASSESSMENTS FOR FISCAL YEAR 2004 -05, PRELIMINARILY APPROVING ENGINEER'S REPORT, AND PROVIDING FOR NOTICE OF HEARING FOR THE PARKS AND RECREATION MAINTENANCE AND IMPROVEMENT DISTRICT OF THE CITY OF MOORPARK 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 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. 2004 -2167, 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 2004 -05; and WHEREAS, pursuant to said Resolution, the Engineer's Report was prepared by Shilts Consultants, Inc., Engineer of Work, in accordance with 22565, et. seq., of the Streets and Highways 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, CALIFORNIA, 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. Page 1 of 3 000182 SECTION 2. It is the intention of this Council to levy and collect assessments within the Assessment District for fiscal year 2004 -05. 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 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 authorized maximum assessment rate for the Assessment District includes an annual adjustment by an amount equal to the annual change in the Los Angeles Consumer Price Index, not to exceed 3% per year. The authorized annual adjustment for fiscal year 2004 -05 is 2.50, which is equal to the Page 2 of 3 000183 change in the Los Angeles Consumer Price Index from December 2002 to December 2003 plus unused CPI changes from previous fiscal year assessments in excess of the 3.0o maximum annual adjustment. Including the authorized annual adjustment, the maximum authorized assessment rate for fiscal year 2004 -05 is $44.60 per single family equivalent benefit unit and the proposed fiscal year 2004 -05 assessment rate per single family equivalent benefit unit is $44.60. SECTION 6. Notice is hereby given that on June 2, 2004, at the hour of 7:00 o'clock 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. 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 adoption of this resolution resolution to be filed in the Clerk shall certify to the and shall cause a certified book of original resolutions. PASSED AND ADOPTED this 19th day of May, 2004. Patrick Hunter, Mayor ATTEST: Deborah S. Traffenstedt, City Clerk Page 3 of 3 111 :•