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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