08.h. Parkside Village Assessment DistrictMEMORANDUM
TO: CITYCOUNCIL
FROM: STEVEN ADAMS, CITY MANAGER 9
SUBJECT: CONSIDERATION OF A RESOLUTION APPROVING A
SUPPLEMENT TO THE FINAL ENGINEER'S REPORT FOR THE
PARKSIDE VILLAGE ASSESSMENT DISTRICT AND APPROVING A
REDUCTION IN THE ASSESSMENTS LEVIED
DATE: JUNE 12,2012
RECOMMENDATION:
It is recommended the City Council adopt a Resolution approving a Supplement to
the Final Engineer's Report ("Supplement") for the Parkside Village Assessment
District to reduce the annual assessments.
IMPACT ON FINANCIAL AND PERSONNEL RESOURCES:
The proposed changes will reduce the amount of annual revenue from the
assessment district from $58,682 to approximately $40,850. The reduced revenue
has been determined to be sufficient to fund projected costs of the service provided
and there will be no impact on the City's General Fund. There is no projected future
impact on staff resources. The cost for staff work involved in preparing the
Supplement was charged to the Parkside Village Assessment District fund balance.
BACKGROUND:
'The conditions of approval for the Parkside Village Subdivision required formation of
an assessment district to fund operation, maintenance and repair costs associated
with certain specified tract improvements. On July 26, 2005, the Council adopted a
Resolution initiating proceedings for formation of the Parkside Village Assessment
District. On September 13, 2005, the Council adopted a Resolution declaring an
intention to form the Parkside Village Assessment District.
Parkside Village LLC prepared, and the Council approved, the required Engineer's
Report. The Engineer's Report describes and establishes the formula utilized,
assessment amounts for each benefiting unit, and the total assessment. The
Parkside Village Assessment District was approved by the Council on November 8,
2005.
Agenda Item 8.h.
Page 1
CITYCOUNCIL
CONSIDERATION OF A RESOLUTION APPROVING A SUPPLEMENTAL STUDY
TO THE FINAL ENGINEER'S REPORT FOR THE PARKSIDE VILLAGE
ASSESSMENT DISTRICT AND APPROVING A REDUCTION IN THE
ASSESSMENTS LEVIED
JUNE 12,2012
PAGE 2
Staff recently solicited bids for contract landscape maintenance for the City's
maintenance districts. At the January 10, 2012 meeting, the City Council approved a
contract for landscape maintenance of the Parkside Village Assessment District.
ANALYSIS OF ISSUES:
Contracting for landscape maintenance for the Parkside Village Assessment District
has enabled staff to more accurately determine and project ongoing costs. As a
result, it has been determined that the assessment fee can be reduced. To calculate
the adjustment, staff prepared a Supplement to the Engineer's Report. No changes
were made to the allocation of benefit, the assessment district map, or costs
identified for depreciation and future replacement of items covered under the
assessment district. Changes were included for projected costs for landscape, park
and detention basin maintenance.
Original projected costs for general maintenance were replaced with revised
estimates. The revised estimates are based upon actual costs with an increased
factor necessary to ensure an adequate reserve is maintained and to cover increases
if less favorable bids are received in the future.
Since its inception, the assessment district has increased fees annually based upon
CPI. This requirement will be maintained, which should protect the City from the
potential future inability to fund improvements due to an escalation in costs. The fund
has also accumulated an adequate balance.
'The Director of Administrative Services will be presenting the assessments for FY
2012-13 for each assessment district in the City to the Council for approval at the
next meeting. If this item is approved, the new assessments will be included in the
recommendations to be sent to the County Auditor Controller.
ALTERNATIVES:
The following alternatives are provided for City Council consideration:
1. Approve staffs recommendations;
2. Direct staff to make revisions to the calculations of the Supplement to the
Engineer's Report;
3. Do not approve the Supplement to the Engineer's Report and direct staff to
maintain the current assessments; or
4. Provide staff other direction.
Agenda Item 8.h.
Page 2
CITYCOUNCIL
CONSIDERATION OF A RESOLUTION APPROVING A SUPPLEMENTAL STUDY
TO THE FINAL ENGINEER'S REPORT FOR THE PARKSIDE VILLAGE
ASSESSMENT DISTRICT AND APPROVING A REDUCTION IN THE
ASSESSMENTS LEVIED
JUNE 12,2012
PAGE 3
ADVANTAGES:
'The recommendations will reduce assessments to more accurately reflect current
and projected costs. The changes will result in an annual savings of approximately
$204 for property owners in Zone 1 and approximately $292 for property owners in
Zone 2.
'The proposed reduction in the assessments imposed will not result in an increased
amount being levied on any person or parcel.
DISADVANTAGES:
The recommendations will reduce revenue to the City, but the revenue is restricted
for a specific purpose and the remaining revenue will be sufficient to address
projected costs.
ENVIRONMENTAL REVIEW:
No environmental review is required for this item.
PUBLIC NOTIFICATION AND COMMENTS:
'The agenda was posted in front of City Hall on 'Thursday, June 7, 2012 and on the
City's website on Friday, June 9, 2012. Notification of the meeting was mailed to
each of the residents affected.
Attachment:
1. Supplement to Final Engineer's Report
Agenda Item 8.h.
Page 3
RESOLUTION NO.
A RESOLUTION OF THE ClTY COUNCIL OF THE ClTY OF
ARROYO GRANDE APPROVING A SUPPLEMENT TO THE
FINAL ENGINEER'S REPORT FOR THE PARKSIDE
VILLAGE ASSESSMENT DIS'TRICT AND APPROVING A
REDUCTION IN 'THE ASSESSMENTS LEVIED
WHEREAS, the City of Arroyo Grande ("City") is authorized under the procedures of the
Landscaping and Lighting Act of 1972 (commencing with Streets and Highways Code
522500 et seq.) to form an assessment district and to levy assessments thereon to
maintain certain specified improvements within the City; and
WHEREAS, on November 8, 2005, the City Council adopted a Resolution Ordering the
Formation of the Parkside Village Assessment District, Confirming Assessments,
Assessment District Diagram and Approving the Levying of Assessments to provide a
means to finance the costs of the maintenance, operation and service for improvements
that specifically benefit the property in the residential subdivision known as Tract 2310-
1 and Tract 2310-2; and
WHEREAS, said improvements were described in the Engineer's Report (the
"improvements") prepared by Stantec, dated December 19, 2005 ("Engineer's Report")
and include, but are not limited to: Landscaping bordering Farroll Road, Bakeman Road
Entrances, behind and along Bakeman Lots 10, 11, 12, and 13 of Phase 1, mini park,
pedestrian pathway easement and drainage basin; fencing, gates and walls bordering
Farroll Road, Bakeman Road Entrances, behind and along Bakeman Lots 10, 11, 12,
and 13, park and drainage basin; the pathway easement, lighting and all improvements
between lots 1, 2 and 3 between Dixon Street and the mini park; the mini park and all
improvements to include walkways, play area, benches, and basketball court on Lot 24;
the drainage retention basin and all improvements to include water separator on Lot 25,
and French drain(s) along the East boundary of Tract 231 0-2; and
WHEREAS, the Engineer's Report described and established the assessment
amount(s) for each benefiting unit; and
WHEREAS, the City has prepared a Supplement to the Final Engineer's Report that
has determined that the projected costs for maintenance are less than originally
estimated; and
WHEREAS, the Supplement to the Final Engineer's Report describes and establishes
revised assessment amount(s) for each benefiting unit that reflect the projected
reduction in actual maintenance costs.
Agenda Item 8.h.
Page 4
RESOLUTION NO.
PAGE 2
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Arroyo
Grande, as follows:
Section 1. The foregoing recitals are true and correct, and incorporated herein by this
reference.
Section 2. That the Supplement to the Final Engineer's Report is approved.
Section 3. That all of the parcels of land within the District shall continue to be
assessed in proportion to the special benefit to be received by such parcels for the
maintenance of such improvements, and the City Council herby declares that such
Assessment Roll and Assessment District Diagram as contained in the Engineer's
Report and Supplement to the Final Engineer's Report are hereby levied. Said
assessments shall continue to be subject to annual adjustment according to changes
set forth in the U.S. Bureau of Labor Statistics Consumer Price Index used by the City.
Section 4. That the Director of Administrative Services is directed to reflect the
reduced assessments in the Resolution to be presented to the City Council and
submitted to the County Auditor Controller's Office establishing assessment amounts for
Fiscal Year 201 2-1 3.
On motion of Council Member , seconded by Council Member
and on the following roll call vote, to wit:
AYES:
NOES:
ABSENT:
the foregoing Resolution was passed and adopted this day of
Agenda Item 8.h.
Page 5
RESOLUTION NO.
PAGE 3
TONY FERRARA, MAYOR
ATTEST:
KELLY WETMORE, CITY CLERK
APPROVED AS TO CONTENT:
STEVEN ADAMS, CITY MANAGER
APPROVED AS TO FORM:
'TIMOTHY J. CARMEL, CITY ATTORNEY
Agenda Item 8.h.
Page 6
;k ClTY OF
SUPPLEMENT TO FINAL ENGINEER'S REPORT
SUBMITTED ON DECEMBER 19,2005 BY STAN'TEC, INC.
FOR FISCAL YEAR 2006-07
FOR
PARKSIDE VILLAGE ASSESSMENT DISTRICT
FISCAL YEAR 201 2-1 3
ClTY OF ARROYO GRANDE
STATE OF CALIFORNIA
ATTACHMENT 1
Agenda Item 8.h.
Page 7
Parkside Village Assessment District
Fiscal Year 201 2-1 3
CERTIFICATES
CITY OF ARROYO GRANDE
PARKSIDE VILLAGE ASSESSMENT DIS'TRICT
FISCAL YEAR 201 2-1 3
On behalf of the City of Arroyo Grande, the undersigned respectfully submits the
attached Supplement to the Engineer's Report submitted on December 19, 2005 from
Stantec, Inc., pursuant to the provisions of Article XIIID, Section 4 of the California
Constitution and the Landscaping and Lighting Act of 1972, Sections 22500 seq. of the
California Streets and Highway Code. The undersigned certifies that he is a
Professional Engineer registered in the State of California.
R.C.E. No. 525
I HEREBY CERTIFY the
Dated: A* 1-/Z
Engineer's Report submitted
on December 19, 2005 from Stantec, Inc., together with the Assessment Role and
Assessment Diagram thereto attached, was filed with me on the day of
, 2012.
Kelly Wetmore, City Clerk
City of Arroyo Grande
San Luis Obispo, California
Agenda Item 8.h.
Page 8
Parkside Village Assessment District
Fiscal Year 2012-13
SECTION 1
INTRODUCTION
SUPPLEMENT TO THE ENGINEER'S REPORT
SUBMITTED ON DECEMBER 19,2005 BY STANTEC, INC.
CITY OF ARROYO GRANDE
PARKSIDE VILLAGE ASSESSMENT DIS'TRICT
FISCAL YEAR 2012-13
To insure a flow of funds for the construction, operation, maintenance and servicing of
specified irr~provements within the boundary of the subdivision known as Parkside
(Tract Maps 231 0-1 and 231 0-2), the City Council approved the City of Arroyo Grande's
Parkside Village Assessment District ("The District") on November 8, 2005. As required
by the Landscaping and Lighting Act of 1972 ("The Act"), a certified Engineer's Report
was prepared, which describes the improvements constructed, operated, maintained
and serviced by the District for Fiscal Year 2006-07, provides an estimated budget for
the District, and lists the proposed assessments to be levied upon each assessable lot
within the District. The boundaries of the District shown on the Assessment Diagram
were incorporated into the report as Part "C".
The cost of operation, maintenance and servicing of the improvements funded by the
District are apportioned to each lot within the District in proportion to the special benefit
it receives. The method of assessment may be amended from time to time by the City
Council in order to apportion the costs in relation to the benefits being received.
However, if the assessments are increased by any amount other than an amount in
accordance with a defined formula for an inflation adjustment that was originally
included in the resolution approving the assessment, such increases will be subject to
the noticing and balloting procedures referenced in Proposition 218.
Payment of the assessment for each lot is made in the same manner and at the same
time as payments are made for property taxes. All funds collected through the
assessment must be placed in a special fund and can only be used for the purposes
stated within the report.
The City Council held a public hearing on November 8'h, 2005 to provide an opportunity
for any interested person to be heard. At the conclusion of the public hearing, the City
Council adopted a resolution confirming the levy of assessments as originally proposed.
Following the adoption of this resolution and recordation of the District's Tract Maps, the
Agenda Item 8.h.
Page 9
final Assessor's roll were prepared and filed with the San Luis Obispo County Auditor's
office to be included on the Fiscal Year 2006-07 tax roll.
The assessment has been adjusted each successive year based upon the Consumer
Price Index (CPI) as set forth in the Final Engineer's Report and City Council
Resolution. A supplement to the Final Engineer's Report has beer1 prepared to reflect a
reduction in projected ongoing general maintenance costs determined based upon
competitive bids received by qualified contractors to provide these services.
The following supplemental report includes amendments to: Part B, Estimate of Cost;
Part E, Assessment Role; Exhibit A, Cost of Improvements; and Exhibit B, Benefit
Exhibit. All other content of the Final Engineer's Report is unchanged. The
methodology used to prepare these amendments was based upon the estimates in the
Final Engineer's Report for the cost of all improvements, which were increased by the
CPI adjustments that have been applied since the original Assessment Roll was
approved. Projected costs for general landscaping, park and detention basin
maintenance were replaced by projected decreased amounts. Total costs were then
apportioned to each parcel by benefit as calculated in the Final Engineer's Report. This
reduction in the assessment imposed will not result in an increased amount being levied
on any person or parcel.
Agenda Item 8.h.
Page 10
Parkside Village Assessment District
Fiscal Year 2012-1 3
PART B
ESTIMATE OF COST
The 1972 Act provides that the total cost of installation, construction, operation,
maintenance and servicing of landscaping and appurtenant facilities can be recovered
by the District. Incidental expenses, including administration of the District, engineering
fees, legal fees, printing, posting, and mailing of notices, and all other costs associated
with the annual collection process can also be included. Annual levy reports will be
prepared to update the District budget and assessments. Annual cost indexing of the
maximum authorized assessments will continue to be tied to the regions Consumer
Price Index (CPI).
The costs calculated by the Fiscal Year 2006-07 Final Engineer's Report have been
modified to reflect general maintenance costs based upon actual contractual bids
received for this maintenance. Other costs for depreciation, repairs and replacement of
improvements have been maintained as originally calculated. As a result, the proposed
operation, maintenance and servicing costs for Fiscal Year 2012-13 are summarized
below:
See exhibit "A" for details on costs of improvements.
Agenda Item 8.h.
Page 11
EXHIBIT "A"
Cost of Improvements
- - LANDSCAPING
I QtV I Price I QxP I Depreciation % 1 Total $/Year I CPI Adjusted
Trees (Installed) I I I
I I I I I I
Plants llnstalledl
Pistacia chinensis
Platanus acerifolia
Prunus cerasifera
2
2
3
Agapanthus africanus
Carex elata 'Bowles Golden'
Chrysanthemum maximum
Coleonema ~ulchrum
- - I I I
Liriope muscari I 2 $7.50 $15.00 I 5% I $0.751 $0.80
Pennisetum setaceum 'Rubrum' 7 I $7.50 I $52.50 I 5% $2.631 $2.81
Euryops pectinatus
Hebe 'Veronica Lake'
Hemerocallis hvbrids 'Stella de Oro'
- -- - - I I I
Rhaphiolepis indica 'Springtime' I 17 I $25.00 I $425.00 I 5% I $21.251 $22.74
libouchina urvilleana 1 $25.00 I $25.00 I 5% $1.251 $1.34
$325.00
$325.00
$325.00
30
53
1
6
13
4
16
I I I
Festuca hybrids (Seed) I 33 Ibs. 1.751lb. I $57.75 I 5% $2.891 $3.09
Marathon' Sod 1 260sa. ft. I .37/sa.ft. I $96.20 1 5% I $4.811 $5.15
$650.00
$650.00
$975.00
$7.50
$7.50
$7.50
$25.00
Ground Cover (Installed)
Gazania rigens
Lantana montevidensis
Trachelospermum jasminoides
$25.00
$7.50
$7.50
5%
5%
5%
$225.00
$397.50
$7.50
$150.00
156
4
156
I
$325.00
$30.00
$120.00
I I I
Irrigation
112" Drip Tubing
314 - 1" Pipe
Reduced-Pressure Backflow Prev.. Installed
Controller. Installed
I I I I I I
I ILandscape Total: I I $8,899.931 $9,086.12
I I I I
$32.50
$32.50
$48.75
5%
5%
5%
5%
30
30
7.5
I I Subtotal: I $508.57l $544.17
- - . . -. - . . - . , . . . - - -
Wire
Misc. Parts
Elect. Water Meter setup (est.)
Equipment
$34.78
$34.78
$52.16
5%
5%
5%
1,323.7'
1,331.2'
1
2
$11.25
$19.88
$0.38
$7.50
$4,680.00
$120.00
$1,170.00
2
7
PARK
lball Post 214' offset, heavy duty cast alum. I I I I 1
Parkside Village Assessment District
$12.04
$21.27~
$0.40
$8.03
$16.25
$1.50
$6.00
$100/1,000 Ft
$l.OO/Foot
$950.00
$4.000
Site Equipment
Outdoor Creations- Picnic Table
Outdoor Creations- Bench
Quick Crete- Waste Container with Lid
PW Athletic-Basketball Court Assembly:
4 112" OD heavy duty galvanized steel basket-
$17.39
$1.61
$6.42
5%
5%
5%
. ,
3,000
$300/day
QtV
$132.37
$1,331.20
$950
$8.000
2
2
2
1
$234.00
$6.00
$58.50
. .
$1.500.00
$1,500.00
$6,000.00
$2,100.00
Subtotal:
Price
$250.38
$6.42
$62.60
10%
10%
10%
10%
$750.00
$675.00
$700.00
$728.00
10%
10%
10%
10%
QxP
$13.24
$133.12
$95.00
$soO.00
$1,500.00
$1,350.00
$1,400.00
$728.00
$14.16
$142.44
$101.65
$ 856.00
$150.00
$150.00
$600.00
$210.00
$2,151.36
I
I
Depreciation % I Total $/Year
$160.50
$160.50
$642.00
$224.70
$2,301.95
CPI Adjusted
5%
5%
5%
5%
$75.00
$67.50
$70.00
$36.40
$80.25
$72.23
$74.90
$38.95
Agenda Item 8.h.
Page 12
EXHIBIT "A"
Cost of Improvements
BLOCK WALLS
I I
I I I I I I
Parkside Vlllage Assessment Dlstrlct
Agenda Item 8.h.
Page 13
EXHIBIT "A"
Cost of Improvements
-
I I Total less 15% for Public Benefit: I $94.861 $101.50
I I I
PARK FENCING
I I I I I I
Total:
QQ
124 FEET
FRENCH DRAIN
French Drain
French Drain Maintenance
25% for Engineering & Administration Costs: ~7j857.12 ~8j170.10
Grant Total: $39,285.59 $40,850.48
Price
$3O/FT
QtV
1
1
Qxp
$3,720
Fencing Total:
Price
$12,600.00
$1,000.00
Depreciation %
3%
Qxp
$12,600.00
$1,000.00
Drain Total:
Total $/Year
$111.60
$111.60
Depredation %
5%
fixed
CPI Adjusted
$119.41
$119.41
Total $/Year
$630.00
$ 1.000.00
$1.630.00
CPI Adlusted
$674.10
$1,070.00
$1.744.10
Agenda Item 8.h.
Page 14
Exhibit "B"
Benefit Exhibit
Landscaping
Park
Detention Basin
Block Walls
Pathways
Fencing
French Drain
Engineering & Admin
Zone 1 Parcels Zone 2 Parcels Total Parcels
Cost Contributing Contributing Contributing Unit Cost
Revenueper Total
Zone 1 B U Unit Cost Parcel No. of Parcels Revenue
Landscaping
Park
Detention Basin
Block Walls
Pathways
Fencing
French Drain
Engineering & Admin
Total Zone 1
Revenue Per Total
Zone 2 BU Unit Cost Parcel No. of Parcels Revenue
Landscaping
Park
Detention Basin
Block Walls
Pathways
Fencing
French Drain
Engineering & Admin
Total Zone 2
Total $40,850.47
Agenda Item 8.h.
Page 15
Parkside Vilage Assessment District
Revised Fiscal Year 2012-13
PART E
ASSESSMENT ROLL
Agenda Item 8.h.
Page 16
Parkside Vilage Assessment District
Revised Fiscal Year 2012-13
Agenda Item 8.h.
Page 17
Agenda Item 8.h.
Page 18