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HomeMy WebLinkAboutAGENDA REPORT 2004 0602 CC REG ITEM 08CITEM 9-C. f MOORPARK CITY COUNCIL AGENDA REPORT TO: The Honorable City Council 1� FROM: Mary K. Lindley, Director of Community Services;. DATE: May 27, 2004 (CC Meeting of June 2, 2004) SUBJECT: Adopt the Resolution Approving the Final Assessment Engineer's Report for the Parks and Recreation Maintenance and Improvement Assessment District and Confirming the Levy Amount for Fiscal Year 2004/05 SUM 14ARY The City Council is beir the continuation of the Improvement Assessment testimony, close the Engineer's Report, and assessment levy. BACKGROUND ig asked to Parks and District Public He adopt a open the Public Hearing on Recreation Maintenance and for FY 2004/05, receive aring, approve the final resolution confirming the 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 especial" 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 all existing 15 City parks. The amount of the M: \MLindley \Assessment Dist \final engineer report 2004 05 ccagd.doc Honorable City Council June 2, 2004 Page 2 assessment levied to property 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. On May 19, 2004, the Council adopted Resolution 2004 -2194 approving the preliminary Engineer's Report and setting a date of June 2, 2004, for the Public Hearing. 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, the future park at the southwest corner of Magnolia and Charles streets, 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. The General M: \MLindley \Assessment Dist \final engineer report 2004 05 ccagd.doc Honorable City Council June 2, 2004 Page 3 Fund FY 04/05 contribution will comprise the remaining approximate 72 percent to the total budget. 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 assigned 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) NN NX ., N. NN ., (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 .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 than was anticipated in FY 2003/04. The report also identifies the non - assessment contribution, which is noted in the Report as City Contribution (General Fund, Park Improvement, Endowment, Park Bond and any other City funding source). M: \MLindley \Assessment Dist \final engineer report 2004 05 ccagd.doc 00008..3 Honorable City Council June 2, 2004 Page 4 Consistent with Proposition 218, the City covers all costs associated with park maintenance activity expenditures that generate \Ngeneral" benefits. Additionally, the City traditionally covers a significant portion of the cost associated with expenditures that generate especial" 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 operations and $1,109,427 for capital improvements. FY 2004/05 Park Asst. District Budget Summary Proposed Expenditures Proposed Funding Operations $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 $2,502,806 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 subsequent years, as long as it adheres to the cap. The history of the adjusted assessment levy is as follows: M:\MLindley \Assessment Dist \final engineer report 2004 05 ccagd.doc Honorable City Council June 2, 2004 Page 5 Fiscal CPI Period CPI Levy Carryover Year Adjustment Adjustment 2000/01 Dec 1998 - 2.30 2.3% 0 Dec 1999 2001/02 Dec 1999 - 3.70 30 .7% Dec 2000 2002/03 Dec 2000 - 2.1% 2.80 0 Dec 2001 2003/04 Dec 2001 - 3.7% 3% .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 SFE 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. Additionally, the Notice cites the assessment amounts set forth in the Engineer's Report. Notice of the City Council's Public Hearing on this item was appropriately published and posted as required by law. M: \MLindley \Assessment Dist \final engineer report 2004 05 ccagd.doc 000085 Honorable City Council June 2, 2004 Page 6 STAFF RECOMMENDATION 1) Open the Public Hearing, receive testimony, and close the public hearing; 2) Adopt Resolution No. 2004- (Attachment A) approving the Engineer's Report and setting the assessment for the Parks and Recreation Maintenance and Improvement District for Fiscal Year 2004/05. Attachment: A - Resolution M: \MLindley \Assessment Dist \final engineer report 2004 05 ccagd.doc Attachment A RESOLUTION NO.2004- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MOORPARK, CALIFORNIA, APPROVING ENGINEER'S REPORT, CONFIRMING DIAGRAM AND ASSESSMENT AND ORDERING LEVY OF ASSESSMENT FOR FISCAL YEAR 2004/05 FOR THE PARKS 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 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 Section 22565, et. seq., of the Streets and Highways Code (the "Report ") and Article XIIID of the California Constitution; and WHEREAS, by Resolution No. 2004 -2194, the City Council preliminarily approved the Engineer's Report for said District and set a date for a Public Hearing; and WHEREAS, said report was duly made and filed with the City Clerk 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 under and pursuant to the aforesaid resolution, and that June 2, 2004, at the hour of 7:00 p.m. in the Council Chambers, located at 799 Moorpark Avenue, Moorpark, California 93021, were appointed as the time and place for a hearing by this Council on the question of the levy of the proposed assessment, notice of which hearing was given as required by law; and 000087 Resolution No. 2004 - Page 2 WHEREAS, at the appointed time and place the hearing was duly and regularly held, and all persons interested and desiring to be heard were given an opportunity to be heard, and all matters and things pertaining to the levy were fully heard and considered by the Council, and all oral statements and all written protests or communications were duly heard, considered and overruled, 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, THE CITY COUNCIL OF THE CITY OF MOORPARK DOES HEREBY RESOLVE AS FOLLOWS: SECTION 1. The public interest, convenience and necessity require that the levy be made. SECTION 2. The Assessment 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 City Clerk, which map is made a part hereof by reference thereto. SECTION 3. 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 Assessment District; and (c) the assessment of the total amount of the cost and expenses of the proposed maintenance of the improvements upon the several lots and parcels of land in the Assessment District in proportion to the estimated special benefits to be received by such lots 1 1:; Resolution No. 2004 - Page 3 and parcels, respectively, from the maintenance, and of the expenses incidental thereto; are finally approved and confirmed. SECTION 4. 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 5. The assessment to pay the costs and expenses of the maintenance of the improvements for fiscal year 2004 -05 is hereby levied. For further particulars pursuant to the provisions of the Landscaping and Lighting Act of 1972, reference is hereby made to the Resolution Directing Preparation of Engineer's Report. SECTION 6. 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 7. Immediately upon the adoption of this resolution, but in no event later than the third Monday in August following such adoption, the City Clerk 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 1111:', Resolution No. 2004 - Page 4 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 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 City of Moorpark Parks and Recreation Maintenance and Improvement District. SECTION 8. Upon receipt of the moneys representing assessments collected by the County, the County shall deposit the moneys in the City Treasury to the credit of the improvement fund previously established under the distinctive designation of the Assessment District. Moneys in the improvement fund shall be expended only for the maintenance, servicing, construction or installation of the improvements. 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 2nd day of June, 2004 Patrick Hunter, Mayor ATTEST: Deborah S. Traffenstedt, City Clerk 000090