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08.c. Parkside Village Assessment DistrictMEMORANDUM TO: CITY COUNCIL FROM: STEVEN ADAMS, CITY MANAGER SUBJECT: CONSIDERATION OF A RESOLU'TION APPROVING A SUPPLEMENTAL STUDY TO THE FINAL ENGINEER'S REPORT FOR THE PARKSIDE VILLAGE ASSESSMENT DISTRICT AND APPROVING A REDUCTION IN THE ASSESSMENTS LEVIED DATE: JUNE 26,2012 RECOMMENDATION: It is recommended the City Council adopt a Resolution approving a Supplement to the Final Engineer's Report for the Parkside Village Assessment District to reduce the 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 remaining revenue has been determined to be sufficient to fund projected costs and there will be no irr~pact 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 to the Engineer's Report 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.c. Page 1 CITY COUNCIL 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 26,2012 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. This item was originally presented to the Council for consideration at 'the June 12, 2012 meeting. Due to concerns and questions raised by property owners, the Council continued the item to the June 26, 2012 meeting to provide staff an opportunity to meet with the property owners and resolve any outstanding issues. 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 amounts can be reduced. To calculate the adjustment, staff prepared a Supplement to the Final Engineer's Report. No changes were made to 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 inflation. The fund has also accumulated an adequate reserve balance. Staff invited all property owners to a neighborhood meeting on June 18'h. Staff reviewed the history of the assessment district, methodology for calculating the assessments, areas and infrastructure maintained, and proposals for upgrading the landscaped areas. Feedback was requested and received on ideas for landscaping improvements. Over 15 people were in attendance and a variety of questions were answered. A number of follow-up items were identified, but the meetiug was very productive and participants expressed support for proceeding with the proposal. The Director of Administrative Services is also presenting the assessments for FY 2012-13 for each assessment district in the City to the Council for approval at this meeting under a separate item. The proposed new assessments were included in the recommendations to be sent to the County Auditor Controller. The Agenda Item 8.c. 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 26,2012 PAGE 3 recommendations would need to be approved at this meeting in order to submit in time to be applied on property tax bills for FY 2012-1 3. ALTERNATIVES: The following alternatives are provided for City Council consideration: 1. Approve staffs recommendations; 2. Direct staff to make revisions to the calculations in 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. ADVANTAGES: The recommendations will adjust 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. DISADVANTAGES: The recommendations will reduce revenue to the City, but the revenue is restricted for a specific purpose and 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 21, 2012 and on the City's website on Friday, June 22, 2012. Notification of the meeting was mailed to each of the residents affected. Attachment: 1. Supplement to Engineer's Study 2. Original Engineer's Report Agenda Item 8.c. Page 3 RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARROYO GRANDE APPROVING A SUPPLEMENT TO THE FINAL ENGINEER'S REPORT FOR THE PARKSIDE VILLAGE ASSESSMENT DISTRICT 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 (corr~mencing with Streets and Highways Code s22500 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 231 0- 1 and Tract 231 0-2; and WHEREAS, said improvements (the "improvements") were described in the Engineer's Report prepared by Stantec dated December 19, 2005 ("Final 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 Final 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.c. 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 hereby 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 I 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.c. 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.c. Page 6 Attachment 1 SUPPLEMENT TO FINAL ENGINEER'S REPORT SUBMITTED ON DECEMBER 19,2005 BY STANTEC, INC. FOR FISCAL YEAR 2006-07 FOR PARKSIDE VILLAGE ASSESSMENT DISTRICT FISCAL YEAR 201 2-1 3 CITY OF ARROYO GRANDE STATE OF CALIFORNIA Agenda Item 8.c. Page 7 Parkside Village Assessment District Fiscal Year 201 2-1 3 CERTIFICATES CITY OF ARROYO GRANDE PARKSIDE VILLAGE ASSESSMENT DISTRICT 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. 52: I HEREBY CER'I'IFY the Dated: ,do /-/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 Wetrnore, City Clerk City of Arroyo Grande San Luis Obispo, California Agenda Item 8.c. Page 8 Parkside Village Assessment District Fiscal Year 2012-1 3 SECTION 1 INTRODUCTION SUPPLEMENT TO THE ENGINEER'S REPORT SUBMlTrED ON DECEMBER 19,2005 BY STANTEC, INC. CITY OF ARROYO GRANDE PARKSIDE VILLAGE ASSESSMENT DISTRICT FISCAL YEAR 201 2-1 3 To insure a flow of funds for the construction, operation, maintenance and servicing of specified improvements within the boundary of the subdivision known as Parkside (Tract Maps 2310-1 and 2310-2), 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 21 8. 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'" 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.c. 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 Eqgineer's Report has been 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 El 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.c. Page 10 EXHIBIT "A" Cost of Improvements I Qtv I Price I Qx P I Depreciation % 1 Total $/Year I CPl Adjusted ~rees (Installed) I I I I I I I I I Plants (Installedl I I I I I I I Pistacia chinensis Platanus acerifolia Prunus cerasifera 2 2 3 Ground Cover (Installed) Gazania rigens Lantana montevidensis Trachelospermum jasminoides I I I I I I I I Subtotal: I $508.571 $544.17 Turf Festuca hybrids (Seed) Marathon' Sod $325.00 $325.00 5325.00 156 4 156 33 Ibs. 260 sq. ft. Irrigation 112" Drip Tubing 314 - 1" Pipe Reduced-Pressure Backflow Prev., Installed Controller, Installed Wirp $650.00 $650.00 5975.00 30 30 7.5 Misc. Parts Elect. Water Meter setup (est.) Equipment I I I I llandscape Total: I I $8,899.93l $9,086.12 I I I I 1.75llb. .37/sq. ft. 1,323.7' 1,331.2' 1 2 Maintenance Landscape Maintenance 5% 5% 5% $4,680.00 $120.00 $1,170.00 2 7 Parkride Village Assessment Dlstrict $57.75 $96.20 $100/1,000 Ft $l.OO/Foot $950.00 $4,000 12 Qtv $32.50 $32.50 $48.75 5% 5% 5% 3,000 S3001day $34.78 $34.78 $52.16 5% 5% $132.37 $1,331.20 $950 $8,000 51.500.00 $520.00/mo Price $234.00 $6.00 ~~8.50 . . $1,500.00 $6,000.00 $2,100.00 Subtotal: $250.38 $6.42 $62.60 $2.89 $4.81 10% 10% 10% 10% 10% fixed QX P $3.09 sS.15 10% 10% 10% $13.24 $133.12 $95.00 $800.00 $150.00 $6,240.00 Depreciation % $14.16 $142.44 $101.65 $856.00 $160.50 $150.00 $600.00 $210.00 $2.151.36 $6,240.00 $160.50 $642.00 $224.70 $2,301.95 Total $/Year CPI Adlusted Agenda Item 8.c. Page 11 EXHIBIT "A" Cost of Improvements BLOCK WALL AND PLASTER I I I I Parkside Village Assessment District Agenda Item 8.c. Page 12 EXHIBIT "A" Cost of Improvements I I I I I " I I Total less 15% for Public Benefit: I $94.861 $101.50 I I I I I I I I Total: 25% for Engineering & Administration Costs: $7,857.12 $8,170.10 Total $/Year $111.60 $111.60 PARK FENCING FRENCH DRAIN French Dram French Dram Ma~ntenance Grant Total: $39,285.59 $40,850.48 CPI Adjusted $119.41 $119.41 Price S30IFT QW 124 FEET QQ 1 1 QX P $3,720 Fenclne Total: Depreciation % 3% Price $12,600 00 $1.000.00 QX P $12,600.00 $1,000.00 Drain Total: Depreciation % 5% fixed Total $/Year $630.00 $ l,OOO.OO $1.630.00 CPl Adjusted $674.10 $1,070.00 $1,744.10 Agenda Item 8.c. Page 13 Exh~bit "0" Benefit Exhibit Zone 1 Parcels Zone 2 Parcels Total Parcels Cost Contributing Contr~but~ng Contr~but~ng Unit Cost Landscaping Park Detention Basln Block Walls Pathways Fencing French Dram Engineering & Adm~n Revenue Per Total Zone 1 BU Unlt Cost Parcel No. of Parcels Revenue Landscaping Park Detention Basln Block Walls Pathways Fenclng French Dram Engineering & Admin Total Zone 1 Revenue Per Total Revenue Zone 2 BU Unrt Cost Parcel No. of Parcels Landscaping Park Detention Basin Block Walls Pathways Fencing French Drain Engineering & Admin Total Zone 2 Total Agenda Item 8.c. Page 14 Parkside Vilage Assessment District Revised Fiscal Year 2012-13 PART E ASSESSMENT ROLL Agenda Item 8.c. Page 15 Parkside Vilage Assessment District Revised Fiscal Year 2012-13 077-255-037 077-255-038 077-255-039 077-255-040 077-255-041 077-255-042 077-255-043 077-255-044 077-255-045 077-255-046 077-255-047 077-255-048 077-255-049 077-255-050 077-255-051 077-255-052 077-255-053 077-255-054 077-255-055 077-255-056 077-255-057 077-255-058 077-255-059 077-255-060 077-255-061 077-255-062 077-255-063 077-255-064 077-255-065 077-255-066 077-255-067 077-255-068 lot 36 lot 37 lot 38 lot 39 lot 40 lot 41 lot 42 lot 43 lot 44 lot 45 lot 46 lot 47 lot 48 lot 49 lot 50 lot 51 lot 52 lot 53 lot 54 lot 55 lot 56 lot 57 lot 58 lot 59 lot 60 lot 61 lot 62 lot 63 lot 64 lot 65 lot 66 lot 67 Total: Grand Total: $58,682.00 Grand Total: $40,850.29 $974.00 $974.00 $974.00 $974.00 $974.00 $974.00 $974.00 $974.00 $974.00 $974.00 $974.00 $974.00 $974.00 $974.00 $974.00 $974.00 $974.00 $974.00 $974.00 $974.00 $974.00 $974.00 $974.00 $974.00 $974.00 $974.00 $974.00 $974.00 $974.00 $974.00 $974.00 $974.00 $50,648.00 $682.15 $682.15 $682.15 $682.15 $682.15 $682.15 $682.15 $682.15 $682.15 $682.15 $682.15 $682.15 $682.15 $682.15 $682.15 $682.15 $682.15 $682.15 $682.15 $682.15 $682.15 $682.15 $682.15 $682.15 $682.15 $682.15 $682.15 $682.15 $682.15 $682.15 $682.15 $682.15 $35,471.80 Agenda Item 8.c. Page 16 Agenda Item 8.c. Page 17 Attachment 2 Final Engineer's Report for Parkside Village Assessment District Fiscal Year 2006-07 City of Arroyo Grande State of California Prepared for: S&S Homes of the Central Coast Prepared by: Stnntec - Ventura Division (Formerly - The Keith Companies - Ventura Division) 310 North Westlake Blvd., Suite 150 Westlake Village, CA 91362 (805) 495-6522 December 19,2005 Agenda Item 8.c. Page 18 TABLE OF CONTENTS ........................................................................................................................... City Directory 1 ............................................................................................................................. Certificates 2-3 Section 1 . Introduction ............................................................................................................... 4 .................................................................................................................... Sectidn 2 -Report 5.6 ......................................................................................... Part A -Plans and Specifications 7 ................................................................................................... Part B . Estimate of Cost 8 Part C . Assessment District Diagram .................................................................................... 9 ................................................................ Part D . Method of Apportionment of Assessment 10-12 ............................................................................................. Part E . Assessment Roll 13-14 Exhibit "An- Cost of Improvements Exhibit "B" . Benefit Exhibit Exhibit "C' . Assessment Diagram Agenda Item 8.c. Page 19 Parkside Village Assessment District Fiscal Year 2006-07 CITY OF ARROYO GRANDE MAYOR. CITY COUNCIL MEMBERS AND STAFF MEMBERS Tony M. Ferrara MayorIChair Joe Costello Mayor Pro TemNice Chair Jim Diclcens CounciVBoard Member Jim Gnthrie CounciVBoard Member Ed Arnold CounciVBoard Member Steven Adams City Manager Tim Carmel City Attorney Kelly Wetmore Director of Administrative ServicesICity Clerk Don Spagnolo, P.E. Director of Public WorkslCity Engineer Daniel Hernandez Director of Parks, Recreation & Facilities Stantec, Inc. 1211 9/05 Agenda Item 8.c. Page 20 Parkside Village Assessment District Fiscal Year 2006-07 cIm OF ARROYO GRANDE PARKSIDE VILLAGE ASSESSMENT DISTRICT FISCAL YEAR 2006-07 The undersigned, acting on behalf of Stantec Inc., respectfully submits the attached Engineer's Report as directed by the City of Arroyo Grande 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 remered in the State of California. /'- Engineer of Work: , Edward Collins, P.E. RC.E. No. 54032 , Expires I HEREBY CERTIFY that the attached Engineer's Report, together with the Assessment Roll and 5'5- Assessment Diagram thereto attached, was fled with me on the a I day of D ~C-E~V~~ER, 2005. Kelly Wetmore, City Clerk City of Arroyo Grande San Luis OPispo County, California Stantec, Inc. 12/19/05 Agenda Item 8.c. Page 21 Parkside Village Assessment District Fiscal Year 2006-07 I HEREBY CERTIFY that the attached Engineer's Report, together with the Assessment Roll and Assessment Diagram thereto attached, was approved and conhned by the City Council of the City of Armyo Grande, San Luis Obispo County, California on the 13 %ay of S & p 7n? AO? , 2005. Kelly Wetmore, City Clerk City of Arroyo Grande San Luis Obispo County, California By: I HEREBY CERTIFY that the enclosed Engineer's Report, together with the Assessment Roll and Assessment Diagram thereto attached was Wed with the County-Clerk Recorder of the County of San Luis Obispo, on the day of ,2005. Kelly Wetmore, City Clerk City of Arroyo Grande San Luis Obispo County, California Stantec, hc. 12/19/05 Agenda Item 8.c. Page 22 Parkside Village Assessment District Fiscal Year 2006-07 SECTION 1 INTRODUCTION ENGINEER'S REPORT CITY OF ARROYO GRANDE PARKSIDE VILLAGE ASSESSMENT DISTRICT FISCAL YEAR 2006-07 To insure a flow of funds for the construction, operation, maintenance and servicing of specified improvements with in the boundary the subdivision known as Parkside (Tract Maps 23 10- 1 and 23 1 0-2); the City Council will approve the City of Arroyo Grande's Parkside Village Assessment District ("The DistricP') this fiscal year. As required by the Landscaping and Lighting Act of 1972 ('"I'he Act"), this Engineer's Report describes the improvements to be 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 are shown on the Assessment Diagram and incorporated into this report as Part "C". The cost of operation, maintenance and servicing of the improvements to be funded by the District will be apportioned to each lot within the District in proportion to the special benefit it receives. The method of assessment may be amended hm 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 from the prior year they will be subject to the noticing and balloting procedures referenced in Proposition 2 18. Payment of the assessment for each lot will be 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 this report. The City Council held a meeting on November 8th, 2005 to provide an opportunity for any interested person to be heard. At the conclusion of the meeting, the City Council adopted a resolution confirming the levy of assessments as originally proposed or as modified. Following the adoption of this resolution and recordation of the District's Tract Maps, the final Assessor's roll will be prepared and filed with the San Luis Obispo County Auditor's office to be included on the Fiscal Year 2006-07 tax roll. Stantec, hc. 12/19/05 Agenda Item 8.c. Page 23 Parkside Village Assessment District Fiscal Year 2006-07 SECTION II ENGINEER'S REPORT PREPARED PURSUANT TO THE PROVISIONS OF LANDSCAPING AND LIGHTING ACT OF 1972 SECTION 22500 THROUGH 22679 OF TEFE CALLFORNIA STREETS AND HIGHWAY CODE CITY OF ARROYO GRANDE PARKSIDE VIILAGE ASSESSMENT DISTRICT FISCAL YEAR 2006-07 Pursuant to the Landscaping & Lighting Act of 1972 (Part 2 of Division 15 of the Streets and Highways Code of the State of California, commencing with Section 22500), this Engineer's Report is submitted to the City Clerk of the City of Arroyo Grande in connection with the proceedings of the City Council to consider the establishment of the Parkside Village Assessment District. Edward Collins, duly-authorized representative of Stantec, Inc., consultant to the City, submits this Engineer's Report consisting of the following parts: PART A: PLANS AND SPECIJ?ICATIONS This part describes the improvements of the District. Prehmmary design documents for the improvements are as set forth on the lists thereof, attached hereto, and are on file in the Office of the City Engineer of the City of Arroyo Grande, and are incorporated herein by reference. Plans are incorporated into the assessment diagram, listed as Exhibit "C", as allowed under Section 22568 of the Act. Exhibit "C" displays the District as consisting of 2 zones: one (1) and two (2). PART B: ESTIMATE OF COST This part contains an estimate of the cost of the proposal improvements for fiscal year 2006-07, including incidental costs and expenses in connection therewith, as set forth on the lists thereof, attached hereto. PART C: ASSESSMENT DISTRICT DIAGRAM This part incorporates, by reference, a Diagram of the District showing the exterior boundaries of the District, the boundaries of any zones within the District, and the lines and dimensions of each lot or parcel of land within the District. This Diagram has been prepared by the Engineer of Worlc. The lines and dimensions of each lot within the District are those lines and dimensions to be shown on the maps of the San Luis Obispo County Assessor following the recordation of Tract Maps 23 10-1 and 23 10-2. Assessor's maps will be prepared following the recordation of the Tract Maps. Stantec, Inc. 12/19/05 Agenda Item 8.c. Page 24 Parkside Vill ge Assessment District Fiscal Year 2 1 06-07 PART D: METHOD OF APPORTIONMENT OF ASSESSMENT This part describes the method of apportionment based upon the parcel classification of land within the District, and in proportion to the estimated benefits to be received. PART E: ASSESSMENT ROLL This part contains a description of each lot of property proposed to be subject to the assessment, including the amount of the assessment on each lot for Fiscal Year 2006-07. Stantec, Inc. 12/19/05 Agenda Item 8.c. Page 25 Parkside Village Assessment District Fiscal Year 2006-07 PART A PLANS AND SPECIFICATIONS The facilities within the Parkside Village Assessment District will be constructed by the subdivider. Those improvements to be constructed will be operated, maintained and serviced generally described as follows: DESCRTPTION OF IMPROVEMENTS The following improvements are proposed to be operated, maintained and serviced in the Parkside Village Assessment District for Fiscal Year 2006-07: Landscaping and Block Walls along Farroll Avenue and Bakeman North, a Park, a Detention Basin and Water Separator, a Sidewalk and Path to Parks, Fencing, and a French Drain. Services include, but are not limited to: personnel; contractual services; grading; clearing; removal of debris; installation or reconstruction of said improvements at the end of their expected lifespan; and any other items necessary for the maintenance or servicing of the facilities. Maintenance means the Mshing of services and materials for the ordinary and usual operations, maintenance and servicing of the landscaping, park or appurtenant facilities; providing for the life, growth, health and beauty of the landscaping, including cultivation, irrigation, trimming, spraying, fertilizing and treating for disease or injury; and the removal of trimmings, rubbish, debris and other solid waste. S tantec, Inc. 1211 9/05 Agenda Item 8.c. Page 26 Parkside Village Assessment District Fiscal Year 2006-07 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 be tied to the regions Consumer Price Index (CPI). The proposed operation, maintenance and servicing costs for Fiscal Year 2006-07 are summarized below. I As preliminarily ( As Confirmed and I Fnnd Balance July 1 I Add Revennes: Assessments Use of Money Total Revenues $0.00 Less Appropriations Landscaping Park $0.00 $54,830.61 $0.00 $54,830.61 Detention Basin Block Walls $54,830.61 $0.00 $54,830.61 $13,459.95 $12,3 10.27 Fencing French Drain $13,459.95 $12,3 10.27 1 $15,545.45 $714.00 Engineering & Administration ( See exhibit "A" for details on costs of improvements. $94.86 $1,630 $10,966.12 $54,830.61 Revenues Over (Under) Fund Balance on June 30 The 1972 Act requires that a special fund be set up for revenues and expenditures of the District. Funds raised by the assessments shall be used only for the purpose as stated herein. A contribution to the Parkside Village Assessment District may be made to reduce assessments as the City deems appropriate. Any balance remaining on July 1 must be carried over to the next fiscal year unless the funds are being accuulated for future capital improvements and operating reserves. $15,545.45 $714.00 $94.86 $1,630 Statec, Inc. 1 2/19/05 1 $0.00 $0.00 $0.00 $0.00 Agenda Item 8.c. Page 27 Parkside Village Assessment District Fiscal Year 2006-07 PART C ASSESSMENT DISTRICT DIAGRAM Properties located within the proposed City of Arroyo Grande Parkside Village Assessment District are within the subdivision known as Parkside (Tract Maps 23 10-1 and 23 10-2). The lines and dimensions of each lot within the District are those lines and dimensions shown on the Tract Maps approved andlor in plan check with the City of Arroyo Grande Department of Public Works for the year when this report was prepared. The Assessment District Diagram for the District is included in this report as Exhibit "C". Stantec, Inc. 1211 9/05 Agenda Item 8.c. Page 28 Parkside Village Assessment District Fiscal Year 2006-07 PART D METHOD OF APPORTIONMENT OF ASSESSMENT GENERAL Part 2 of Division 15 of the Streets and Highways Code, the Landscaping and Lighting Act of 1972, permits the establishment of assessment districts by Agencies for the purpose of providing certain public improvements which include the operation, maintenance and servicing of improvements. Section 22573 of the Act requires that maintenance assessments must be levied according to benefit rather than according to assessed value. This section states: 'The net amount to be assessed upon lanh within an assessment dktrict may be apportioned by any formula or method which fairly distributes the net amount among all assessable lots or parcels in proportion to the estimated benefit to be received by each such lot orparcelfiom the improvements" 'The determination of whether or not a lot or parcel will benefit fiom the improvements shall be made pursuant to the Improvement Act of 1911 (Division 7 commencing with Section 5000 of the Streets and Highways Code, State of California) ". In addition, Article XIIID, Section 4(a) of the California Constitution limits the amount of any assessment to the proportional special benefit conferred on the property. Because assessments are levied on the basis of benefit, they are considered a user's fee, not a tax, and, therefore, are not governed by Article mA of the California Constitution. The 1972 Act pennits the designation of zones of special benefit within any individual assessment district if '%y reasons or variations in the nature, location, and extent of the improvements, the various areas will receive different degrees of benefit fkom the improvement" (Sec. 22574). Thus, the Act requires the levy of true "assessment" rather than "special tax." Article XIIID provides that publicly owned properties must be assessed unless there is clear and convincing evidence that those properties receive no special benefit fkom the assessment. Exempted fkom the assessment would be the areas of public streets, public avenues, public lanes, public roads, public drives, public courts, public alleys, public easements and right-of-ways, public greenbelts and public parkways. Stantec, Inc. 1211 9/05 Agenda Item 8.c. Page 29 Parkside Village Assessment District Fiscal Year 2006-07 BENEFlT ZONE CLASSIFICATION The City of koyo Grande's Parkside Village Assessment District will be formed to provide a funding source for the operation, maintenance and servicing of improvements within the boundaries of the District. All lots within zone two (2) [Tract Map 23 10-21 of the district benefit fiom each said improvement. All lots within zone one (1) [Tract Map 23 10-11 benefit fiom each said improvement, except for Detention Basin improvements and French Drain improvements. The aforementioned special benefit zones will be created to allocate assessments in relation to the benefits received by each zone. ASSESSMENT METHODOLOGY Due to the similar use of each lot within their respective subdivision zones, the total operation, maintenance and servicing costs for the improvements are apportioned to each lot equally for the given zone. All improvement costs assessed in Zone 1 will be apportioned equally amongst the lots within Zone 1. All improvement costs assessed in Zone 2 will be apportioned equally amongst the lots within Zone 2. See Exhibit "B" for details. BENEFlT DETERMINATION It is necessary to identify the benefit that the improvements will render to the properties within the Assessment District. It is also necessary that the properties receive a special and direct benefit as distinguished fiom general benefit to the general public. Landscaping and hardscaping, if well maintained, provide beautification, shade and enhancement of the desirability of the surroundings, thereby providing a special benefit. These improvements provide special and direct benefits to each property located within the District. Because the proposed improvements do not provide benefit to properties outside the District, no allocation of general benefit is required. The proposed park provides a place for recreation within the proposed subdivision (Tract 2310), thereby providing a special benefit. These improvements provide special and direct benefits to each property located within the District. However, the City of Arroyo Grande has determined that park facilities will provide some general benefit to the public. Since the park is accessible to the general public, 15 percent of the benefit is classified as general. The remaining 85 percent of the benefit is classified as special. The proposed detention basin collects storm drainage from property located in Zone 2 of Tract 23 10, thereby providing a special and direct benefit only to Zone 2. Proposed block walls along Farroll Avenue and Bakeman North provide beautification of the surroundings, thereby providing a special benefit. These improvements provide Stantec, hc. 1211 9/05 Agenda Item 8.c. Page 30 Parlaide Village Assessment District Fiscal Year 2006-07 special and direct benefits to each property located within the District. Because the proposed improvements do not provide benefit to properties outside the District, no allocation of general benefit is required. The proposed park pathways provide a pedestrian route to parks within or just outside the proposed subdivision (Tract 2310), thereby providing a special benefit. These improvements provide special and direct benefits to each property located within the District. However, the City of Arroyo Grande has determined that pathways to park facilities will provide some general benefit to the public. Since the park pathways are accessible to the general public, 15 percent of the benefit is classified as general. The remaining 85 percent of the benefit is classified as special. The proposed park fencing will provide safety for the proposed park, thereby adopting the same benefit classifications as the park: 15 percent general benefit and 85 percent special benefit. The proposed French drain will provide drainage to the easterly boundary of Zone 2 (Tract 23 10-2), thereby providing a special and direct benefit only to Zone 2. Stantec, hc. 1211 9/05 Agenda Item 8.c. Page 31 Parkside Village Assessment Dislrict Fiscal Year 2006-07 PART E ASSESSMENT ROLL I as Preliminarily I as Confirmed and I 13 Stantec, hc. 12/19/05 Agenda Item 8.c. Page 32 Parkside Village Assessment District Fiscal Year 2006-07 077-251-005 077-251-005 077-251 -005 077-251 -005 077-251-005 077-251 -005 077-251 -005 077-251 -005 077-251-005 077-251 -005 077-251 -005 , 077-251-005 077-251 -005 077-251 -005 077-251 -005 077-251 -005 lot 36 lot 37 lot 38 lot 39 lot 40 lot 41 lot 42 lot 43 lot 44 077-251-005 1 lot 52 I $909.61 lot 45 lot 46 lot 47 lot 48 lot 49 lot 50 lot 51 $909.61 077-251-005 1 lot 54 $909.61 $909.61 $909.61 $909.61 $909.61 $909.61 $909.61 $909.61 $909.61 077-251-005 1 lot 56 I $909.61 $909.61 $909.61 $909.61 $909.61 $909.61 $909.61 $909.61 $909.61 $909.61 $909.61 $909.61 $909.61 $909.61 $909.61 $909.61 $909.61 $909.61 $909.61 077-251-005 1 lot 58 $909.61 $909.61 $909.61 $909.61 $909.61 $909.61 $909.61 $909.61 077-251-005 1 lot 53 $909.61 077-251 -005 1 lot 55 077-251-005 1 lot 60 $909.61 077-251 -005 1 lot 57 $909.61 077-251 -005 1 lot 62 Stantec, Inc. 1211 9/05 $909.61 $909.61 077-251 -005 1 lot 59 077-251-005 1 lot 61 $909.61 1 $909.61 $909.61 $909.61 I $909.61 077-251 -005 077-251 -005 077-251 -005 077-251 -005 $909.61 $909,61 $909.6 1 $909.61 $909.61 077-251 -005 1 lot 63 lot 64 lot 65 lot 66 lot 67 $909.61 $909.61 $909.61 Total: $47,299.72 Total: $47,299.72 $909.61 $909.61 $909.61 $909.61 $909.61 $909.61 $909.61 $909.61 Agenda Item 8.c. Page 33 Exhibit "A" Cast of Impmments Parkslde Vlllage Assessment District Agenda Item 8.c. Page 34 Exhlblt "A" Cost of Improvements Parkside Village Assessment District Agenda Item 8.c. Page 35 25% for EngbeerIng & Admlnlstrntlon Coab SlOQ66.12 Grand Total: Parkside Village Assessment District Agenda Item 8.c. Page 36 Zone 1 Parcels ConMbuthg 13 13 0 13 43 13 0 13 Zone 2 Parcels Contrbuting 52 52 52 52 52 52 52 52 Total Parcsls Contributing Cost Unlt Cast Landscaping Park Dstentlon Basin Block Wafb pathways Fhg French Drain Engineartng & Admh Revenue Per Paml Total Revenue Zone 1 UnR Cost No. of Parcels Landsmplng Park Detention Basln Block Walls Pathways Fenclng French Dtah Englneerlng 8 Adrnln Total Zone I Revenue Per Parcel S 207.08 5 189.3 f 298.95 s 10.98 s 1.89 S 1.46 S 31.35 s 168.71 $ 909.61 Total Revenue Zone 2 Unlt Cost 5 207.08 5 189.39 5 298.95 $ 10.98 5 1.69 s 1.46 5 31.35 S 188.71 $ 909.61 No. of Pmls Lanfbcaplng Park DetmUm Basln Bock Wab hmys Fencfna French Drah Engineering & Admln T-l Zone 2 Total Parkslde Wlage Assessment Dlstrict Agenda Item 8.c. Page 37 Ag e n d a I t e m 8 . c . Pa g e 3 8