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Home My WebLink AboutAgenda Packet 10/24/2005 m CITY OF ATA SCA®ERO 1918 19 9 49 CITY COUNCIL AGENDA Tuesday, May 24, 2005 7:00 P.M. Atascadero Lake Pavilion 9315 Pismo St. Atascadero, California REDEVELOPMENT AGENCY: 6:30 P.M. CLOSED SESSION: (Immediately Following Redevelopment Agency Meeting) 1. PUBLIC COMMENT— CLOSED SESSION 2. CALL TO ORDER a) Conference with Labor Negotiator (Govt. Code Sec. 54957.6) Agency Negotiators: City Manager, Assistant City Manager Employee Organizations: Department Heads, Mid- Management/Professional, Confidential, Atascadero Police Association, Atascadero Fire Fighters Bargaining Unit, Service Employees Intl. Union Local 620. 3. ADJOURN 4. CLOSED SESSION REPORT REGULAR SESSION: 7:00 P.M. PLEDGE OF ALLEGIANCE: Council Member Luna ROLL CALL: Mayor Scalise Mayor Pro Tem O'Malley Council Member Clay Council Member Luna Council Member Pacas 1 COMMUNITY FORUM: (This portion of the meeting is reserved for persons wanting to address the Council on any matter not on this agenda and over which the Council has jurisdiction. Speakers are limited to five minutes. Please state your name and address for the record before making your presentation. The Council may take action to direct the staff to place a matter of business on a future agenda. A maximum of 30 minutes will be allowed for Community Forum, unless changed by the Council.) APPROVAL OF AGENDA: Roll Call COUNCIL ANNOUNCEMENTS AND REPORTS: (On their own initiative, Council Members may make a brief announcement or a brief report on their own activities. Council Members may ask a question for clarification, make a referral to staff or take action to have staff place a matter of business on a future agenda. The Council may take action on items listed on the Agenda.) PRESENTATIONS: 1. Presentation of service plaque to former Planning Commissioner, Tim Peterson. 2. Presentation of plaque by Big Brothers Big Sisters of San Luis Obispo County to the City of Atascadero. A. CONSENT CALENDAR: (All items on the consent calendar are considered to be routine and non-controversial by City staff and will be approved by one motion if no member of the Council or public wishes to comment or ask questions. If comment or discussion is desired by anyone, the item will be removed from the consent calendar and will be considered in the listed sequence with an opportunity for any member of the public to address the Council concerning the item before action is taken.) 1. City Council and Planning Commission Special Joint Meeting Minutes — April 12, 2005 ■ City Clerk Recommendation: Council approve the City Council and Planning Commission special joint meeting minutes of April 12, 2005. [City Clerk] 2. City Council Special Meeting Minutes — April 14, 2005 ■ City Clerk Recommendation: Council approve the City Council special meeting minutes of April 14, 2005. [City Clerk] 3. City Council Meeting Minutes — April 26, 2005 ■ City Clerk Recommendation: Council approve the City Council meeting minutes of April 26, 2005. [City Clerk] 2 4. Planned Development 15 Text Amendment: Zone Change 2005-0096 (City of Atascadero) ■ Fiscal Impact: The proposed zone text amendment will be revenue neutral to the City. ■ Recommendation: Council approve on second reading, by title only, draft Ordinance A approving Zone Change 2005-0096 based on findings. [Community Development] 5. Parking and Business Improvement Area Assessment ■ Fiscal Impact: The City receives approximately $10,500 annually from the Downtown Parking and Business Improvement Area assessments. ■ Recommendation: Council adopt the draft Resolution of Intention, declaring intent to levy annual Downtown Parking & Business Improvement Area assessment, and set a public hearing for June 14, 2005. [City Manager] 6. Temporary City Hall Interior Improvement Project ■ Fiscal Impact: $511,200.00. ■ Recommendations: Council: 1. Authorize the City Manager to execute a contract with Wysong Construction Company, in the amount of $426,000.00, for the Interior improvements (Framing, Sheetrock, Doors); and, 2. Authorize the Director of Administrative Services to allocate $511,200.00 toward the completion of the Interior Improvements Project. [City Manager] 7. Relocation Guidelines —Joint Resolution ■ Fiscal Impact: The costs associated with providing relocation assistance are unique to each instance under which it would be provided, therefore cannot be known in advance. ■ Recommendation: Council approve the draft Joint Resolution of the City Council of the City of Atascadero and the Board of Directors of the Community Redevelopment Agency of Atascadero Adopting Relocation Guidelines. [City Manager] 8. Lease Agreement with Community Redevelopment Agency ■ Fiscal Impact: The City of Atascadero will tender $373,596.00 each year of the Agreement for a total of $1,494,384.00 over the term of the Lease. The City will be reimbursed by FEMA for the Lease payments made during the term. ■ Recommendation: Council approve the Lease Agreement between the City of Atascadero and the Community Redevelopment Agency of Atascadero, and authorize City Manager to sign said Lease Agreement. [City Manager] 3 9. Weed Abatement— Awarding of Contractor Bid ■ Fiscal Impact: None. ■ Recommendation: Council authorize the City Manager to execute the contract with Jack R. Bridwell for weed abatement. [Fire Department] 4 10. Woodridge/Las Lomas Final Map 2004-0099 (Tract 2608) Halcon Road (TTM 2004-0047)(R.W. Hertel and Sons) ■ Fiscal Impact: None. ■ Recommendations: Council: 1 . Accept Final Parcel Map 2004-0099 (Tract 2608); and, 2. Reject, without prejudice to future acceptance, the offer of dedication for Access Easement over Lots 36, 37, 38 and Ranata Circle and for Sanitary Sewer Easement; and, 3. Authorize City Manager to execute Subdivision Improvement Agreement; and, 4. Authorize City Manager to sign Agreements to Provide Housing Units for Persons and Family of Low income; and, 5. Authorize City Manager to sign Agreements to Provide Housing Units for Persons and Families of Very Low Income; and, 6. Authorize City Manager to sign City of Atascadero Workforce and Affordable Housing Selection Plan. [Public Works] 11. Woodridge/Las Lomas Final Map 2004-0097 (Tract-2525-2) Halcon Road (TTM 2003-0027) (R.W. Hertel and Sons) ■ Fiscal Impact: None. ■ Recommendations: Council: 1. Accept Final Parcel Map 2004-0097 (Tract 2525-2); and, 2. Reject, without prejudice to future acceptance, the offer of dedication for Public Right-of-Way and for Public Utility Easements; and, 3. Authorize City Manager to execute Subdivision Improvement Agreement; and, 4. Authorize the Public Works Director to accept and sign off site easements agreements for Public Road and Slopes; and, 5. Authorize City Manager to sign Agreements to Provide Housing Units for Persons and Family of tow Income; and, 6. Authorize City Manager to sign Subdivision Annexation and Assessment and Parcel Tax Authorization Deferral Agreement. [Public Works] B. PUBLIC HEARINGS: 1. Assessment Districts a. Apple Valley Assessment Districts ■ Fiscal Impact: There is no fiscal impact to general residents within the City. ■ Recommendation: Council conduct the Public Hearing for the Apple Valley Assessment Districts, and direct the City Clerk to collect and count the ballots. [Administrative Services] 4 b. Woodridge (Las Lomas) Assessment Districts ■ Fiscal Impact: There is no fiscal impact to general residents within the City. ■ Recommendation: Council conduct the Public Hearing for the Woodridge (Las Lomas) Assessment Districts, and direct the City Clerk to collect and count the ballots. [Administrative Services] c. Community Facilities District ■ Fiscal Impact: Annual taxes of $440 per unit for each new residential unit with the Woodridge/Las Lomas, Colony at Apple Valley and DeAnza developments will result in new annual revenues of approximately $155,000. ■ Recommendations: Council: 1. Adopt Draft Resolution A, forming Community Facilities District No. 2005-1 (Public Services); and, 2. Adopt Draft Resolution B, calling a special election and submitting to the voters of the City of Atascadero Community Facilities District No. 2005-1 (Public Services) propositions regarding the annual levy of special taxes within the Community Facilities District to finance police services, fire protection and suppression services, and park services therein, and the establishment of an appropriations limit; and, 3. Direct the City Clerk to collect and count the ballots. [Administrative Services] Council to recess until ballots are counted. d. Apple Valley Assessment Districts ■ Recommendations: Council: 1. Direct City Clerk to announce the results of the election; and, 2. Adopt Draft Resolution A declaring the results of the property owner protest ballot proceeding for Street and Storm Drain Maintenance District No. 01 (Apple Valley) and approving certain related actions; and, 3. Adopt Draft Resolution B amending and/or approving the Final Engineer's Report regarding the formation of Street and Storm Drain Maintenance District No. 01 (Apple Valley), and the levy and collection of annual assessments related thereto commencing in fiscal year 2005/2006; and, 4. Adopt Draft Resolution C confirming the formation of Street and Storm Drain Maintenance District No. 01 (Apple Valley) and ordering the levy and collection of assessments for fiscal year 2005/2006; and, 5. Adopt Draft Resolution D declaring the results of the property owner protest ballot proceeding for Landscaping and Lighting District No. 01 (Apple Valley) and approving certain related actions; and, 5 6. Adopt Draft Resolution E amending and/or approving the Final Engineer's Report regarding the formation of Landscaping and Lighting District No. 01 (Apple Valley); and the levy and collection of annual assessments related thereto commencing in fiscal year 2005/2006; and, 7. Adopt Draft Resolution F confirming the formation of Landscaping and Lighting District No. 01 (Apple Valley) and ordering the levy and collection of assessments for fiscal year 2005/2006. [Administrative Services] e. Woodridge (Las Lomas) Assessment Districts ■ Recommendations: Council: 1. Direct City Clerk to announce the results of the election; and, 2. Adopt Draft Resolution A, declaring the results of the property owner protest ballot proceeding for Street and Storm Drain Maintenance District No. 02 (Woodridge/Las Lomas) and approving certain related actions; and, 3. Adopt Draft Resolution B amending and/or approving the Engineer's Report regarding the formation of Street and Storm Drain Maintenance District No. 02 (Woodridge/Las Lomas), and the levy and collection of annual assessments related thereto, commencing in fiscal year 2005/2006; and, 4. Adopt Draft Resolution C confirming the formation of Street and Storm Drain Maintenance District No. 02 (Woodridge/Las Lomas) and ordering the levy and collection of assessments for fiscal year 2005/2006; and, 5. Adopt Draft Resolution D declaring the results of the property owner protest ballot proceeding for Landscaping and Lighting District No. 02 (Woodridge/Las Lomas) and approving certain related actions; and, 6. Adopt Draft Resolution E amending and/or approving the Engineer's Report regarding the formation of Landscaping and Lighting District No. 02 (Woodridge/Las Lomas); and the levy and collection of annual assessments related thereto commencing in fiscal year 2005/2006; and, 7. Adopt Draft Resolution F confirming the formation of Landscaping and Lighting District No. 02 (Woodridge/Las Lomas) and ordering the levy and collection of assessments for fiscal year 2005/2006. [Administrative Services] f. Community Facilities District ■ Recommendations: Council: 1. Direct City Clerk to announce the results of the election; and, 2. Adopt Draft Resolution C, declaring the results of the special elections for the City of Atascadero Community Facilities District No. 2005-1 (Public Services) County of San Luis Obispo, State of California, on the propositions with respect to (i) the annual levy of special taxes, and (ii) the establishment of an appropriations limit, and authorizing the recordation of the notice of special tax lien. [Administrative Services] 6 2. Weed Abatement— Hearing of Objections ■ Fiscal Impact: Costs involved in administering this program are recovered through the 150% administrative fee charged to parcels abated by the City Contractor. ■ Recommendation: Council consider all objections to the proposed removal of vegetative growth and/or refuse and allow or overrule any objections. Following the hearing, it is recommended that the City Council authorize the Fire Chief to proceed and perform the work of abatement. [Fire Department] C. COMMITTEE & LIAISON REPORTS: (The following represent standing committees. Informative status reports will be given, as felt necessary): Mayor Scalise 1. County Mayor's Round Table 2. Atascadero State Hospital Advisory Board 3. Local Agency Formation Commissions (LAFCO) Mayor Pro Tem O'Malley 1. Finance Committee 2. Air Pollution Control District (APCD) 3. Economic Vitality Corporation, Board of Directors (EVC) 4. League of California Cities — Grassroots Network 5. City/ Schools Committee 6. Economic Opportunity Commission (EOC) Council Member Clay 1. S.L.O. County Flood Control & Water Conservation District Water Resources Advisory Committee 2. Nacimiento Water Purveyors Contract Technical Advisory Group 3. North County Water Purveyors Group Council Member Luna 1. SLO Council of Governments (SLOCOG) /S.L.O. Regional Transit Authority (SLORTA) 2. Finance Committee Council Member Pacas 1. Integrated Waste Management Authority (IWMA) 2. City/ Schools Committee 3. Atascadero Youth Task Force D. INDIVIDUAL DETERMINATION AND/OR ACTION: 1. City Council 2. City Clerk 3. City Treasurer 4. City Attorney 5. City Manager 7 E. ADJOURNMENT: Please note: Should anyone challenge any proposed development entitlement listed on this Agenda in court, that person may be limited to raising those issues addressed at the public hearing described in this notice, or in written correspondence delivered to the City Council at or prior to this public hearing. Correspondence submitted at this public hearing will be distributed to the Council and available for review in the City Clerk's office. I, Shannon Sims, Deputy City Clerk of the City of Atascadero, declare under the penalty of perjury that the foregoing agenda for the May 24, 2005 Regular Session of the Atascadero City Council was posted on May 17, 2005 at the Atascadero City Hall Annex, 6905 EI Camino Real, Suite 6, Atascadero, CA 93422 and was available for public review in the Customer Service Center at that location. Signed this 17th day of May, 2005 at Atascadero, California. Shannon Sims, Deputy City Cler City of Atascadero 8 City of Atascadero WELCOME TO THE ATASCADERO CITY COUNCIL MEETING City Council meets in regular session on the second and fourth Tuesday of each month at 7:00 p.m., at the tascadero Pavilion on the Lake, 9315 Pismo St., Atascadero. Matters are considered by the Council in the order of the printed Agenda. Copies of the staff reports or other documentation relating to each item of business referred to on the Agenda are on file in the office of the City Clerk and are available for public inspection during City Hall Annex business hours at the Central Receptionist counter and on our website, www.atascadero.org. An agenda packet is also available for public review at the Atascadero Library, 6850 Morro Road. Contracts, Resolutions and Ordinances will be allocated a number once they are approved by the City Council. The minutes of this meeting will reflect these numbers. All documents submitted by the public during Council meetings that are either read into the record or referred to in their statement will be noted in the minutes and available for review in the City Clerk's office. In compliance with the Americans with Disabilities Act, if you need special assistance to participate in a City meeting or other services offered by this City, please contact the City Manager's Office or the City Clerk's Office, both at (805) 461-5000. Notification at least 48 hours prior to the meeting or time when services are needed will assist the City staff in assuring that reasonable arrangements can be made to provide accessibility to the meeting or service. TO SPEAK ON AGENDA ITEMS Members of the audience may speak on any item on the agenda. The Mayor will identify the subject, staff will give their report, and the Council will ask questions of staff. The Mayor will announce when the public comment period is open and will request anyone interested to address the Council regarding the matter being considered to step up to the podium. If you wish to speak for, against or comment in any way: • You must approach the podium and be recognized by the Mayor • Give your name and address (not required) • Make your statement • All comments should be made to the Mayor and Council • No person shall be permitted to make slanderous, profane or negative personal remarks concerning any other individual, absent or present • All comments limited to 5 minutes (unless changed by the Council) • No one may speak for a second time until everyone wishing to speak has had an opportunity to do so, and no one may speak more than twice on any item. If you wish to use a computer presentation to support your comments, you must notify the City Clerk's office at least 24 hours prior to the meeting. Access to hook up your laptop to the City's projector will be provided. You are required to submit to the City Clerk a printed copy of your presentation for the record. Please-check in with the City Clerk before the meeting begins to announce your presence and turn in the printed copy. The Mayor will announce when the public comment period is closed, and thereafter, no further public comments will be heard by the Council TO SPEAK ON SUBJECTS NOT LISTED ON THE AGENDA Under Agenda item, "COMMUNITY FORUM", the Mayor will call for anyone from the audience having business with the Council to: • Please approach the podium and be recognized • Give your name and address (not required) • State the nature of your business This is the time items not on the Agenda may be brought to the Council's attention. A maximum of 30 minutes will be allowed for Community Forum (unless changed by the Council). TO HAVE ITEMS PLACED ON AGENDA 0 business matters to appear on the Agenda must be in the Office of the City Manager 14 days preceding the Council eting. Should you have a matter you wish to bring before the Council, please mail or bring a written communication to the City Manager's office in City Hall prior to the deadline. 9 ITEM NUMBER: A- 1 DATE: 05/24/05 SPECIAL JOINT MEETING 1971) Atascadero City Council Atascadero Planning Commission DRAFT MINUTES Tuesday, April 12, 2005 5:00 P.M. ROLL CALL: Community Development Director Warren Frace called the meeting to order at 5:02 p.m. ROLL CALL: Present: Council Members Clay, Luna, Pacas, O'Malley and Mayor Scalise Planning Commissioners Fonzi, Kelley, Jones, O'Keefe, Peterson, Beraud and Chairperson Porter Absent: None Others Present: City Clerk / Assistant to City Manager Marcia McClure Torgerson, - Deputy City Clerk Grace Pucci Staff Present: City Manager Wade McKinney, Assistant City Manager Jim Lewis, Administrative Services Director Rachelle Rickard, Community Development Director Warren Frace, Public Works Director Steve Kahn, Police Chief John Couch, Deputy Executive Director of Redevelopment Marty Tracey, Deputy Community Development Director Steve McHarris and City Attorney Patrick Enright. JOINT STUDY SESSION: 1. CUP 2004-0127: Preliminary review of the Colony Square Mixed Use Project (6905 EI Camino Real). No formal action will be taken on the proposed project. CC/PC Special Joint Meeting Draft Minutes 04/12/05 Page 1 of 2 10 ITEM NUMBER: A- 1 DATE: 05/24/05 Community Development Director Warren Frace introduced the applicants for the Colony Square Project. Brian Reynolds, Atascadero Librarian, spoke about the current city library and explained why he would like to see it relocated within the Colony Square project. Bob Richmond, project architect and applicant's representative, introduced members of his staff and gave the presentation. Mr. Richmond, Jim Harrison, applicant, and J.C. Martin, commercial real estate broker, answered questions of Council and the Planning Commission. The following issues were raised by Council and Commission members: 1. Financing for the project 2. What sort of City participation is the applicant seeking 3. Amenities offered by the project 4. Handling the flow of traffic 5. Phasing of the project 6. Consideration of the use of balconies in the live/work areas 7. Importance of view shed landscapes 8. Incorporating public art into the project 9. The importance of fast tracking the project 10. The appearance/facade of the existing motel and restaurant 11. Placement of utilities 12. Adequate parking and the potential for a multi-level parking structure 13. The possibility of placing the public library within the project. 14. The importance of developing the theater in phase one. 15. Off-site improvements 16. The importance of locating retail businesses on first floor spaces 17. Creek setbacks ADJOURNMENT: The City Council and Planning Commission adjourned at 6:29 p.m. to their next regularly scheduled meetings. MINUTES PREPARED BY: Grace Pucci, Deputy City Clerk CC/PC Special Joint Meeting Draft Minutes 04/12/05 �� Page 2of2 ITEM NUMBER: A-2 DATE: 05/24/05 SPECIAL MEETING Atascadero City Council Thursday, April 14, 20059 5:00 P.M. DRAFT MINUTES Parks & Recreation Commission Interviews & Appointments Mayor Pro Tem O'Malley called the meeting to order at 5:00 p.m. ROLL CALL: Present: Council Members Clay, Luna, Pacas and Mayor Pro Tem O'Malley Absent: Mayor Scalise Others Present: City Clerk Marcia McClure Torgerson 1. Parks & Recreation Commission Interviews'& Appointments City Clerk recommendation: Council interview the five candidates and select, by ballot, two citizens for the Parks & Recreation Commission. The Council interviewed the five candidates for the Parks & Recreation Commission. Council Member Pacas had to leave prior to the final interview. There was Council consensus of the remaining members of the Council to continue this item to the next scheduled Council meeting when all members will be present to vote. ADJOURNMENT: Mayor Pro Tem O'Malley adjourned the meeting at 6:35 p.m. MINUTES PREPARED BY: Marcia McClure Torgerson, C.M.C. City Clerk 12 ITEM NUMBER: A-3 DATE: 05/24/05 ;9i$ • , 19 CITY OF A T�4 SCA®SRO CITY COUNCIL DRAFT MINUTES Tuesday, April 26, 2005 7:00 P.M. CLOSED SESSION: 6:42 p.m. 1. PUBLIC COMMENT— CLOSED SESSION — None 2. CALL TO ORDER a) Conference with Labor Negotiator (Govt. Code Sec. 54957.6) Agency Negotiators: City Manager, Assistant City Manager Employee Organizations: Department Heads, Mid- Management/Professional, Confidential, Atascadero Police Association, Atascadero Fire Fighters Bargaining Unit, Service Employees Intl. Union Local 620. 3. ADJOURN: 7:07 p.m. 4. CLOSED SESSION REPORT City Attorney Patrick Enright announced that the City Council met in closed session and gave further instructions to its labor negotiator. REGULAR SESSION: 7:00 P.M. Mayor Scalise called the meeting to order at 7:08 p.m. and Mayor Pro Tem O'Malley led the Pledge of Allegiance. CC Draft Minutes 04/26/05 Page 1 of 7 13 ROLL CALL: Present: Council Members Clay, Luna, Pacas, O'Malley and Mayor Scalise Absent: None Others Present: City Clerk / Assistant to City Manager Marcia McClure Torgerson and Deputy City Clerk Grace Pucci Staff Present: City Manager Wade McKinney,Assistant City Manager Jim Lewis, Administrative Services Director Rachelle Rickard, Community Services Director Brady Cherry, Public Works Director Steve Kahn, Deputy Executive Director of Redevelopment Marty Tracey, Police Chief John Couch and City Attorney Patrick Enright. COMMUNITY FORUM: John Davis, Pastor of Christ Chapel, led those present in prayer. Ann Ketcherside asked the City Council to help the Vetter family reclaim their property and to assist Lana Herd in clarifying the correct zoning designation for her property. Eric Greening expressed concern regarding the surprise at the Dove Cemetery and asked how to legally bring a project back in front of the Council when the circumstances change this drastically. Ann Ketcherside stated her concern regarding Dove Cemetery, and asked Council to instruct the builder to delay digging up the graves. Mayor Scalise closed the Community Forum period. City Manager Wade McKinney and City Attorney Patrick Enright addressed issues raised in the Community Forum period. APPROVAL OF AGENDA: MOTION: By Council Member Luna and seconded by Council Member Clay to approve the agenda. Motion passed 5:0 by a roll-call vote. CC Draft Minutes 04/26/05 Page 2 of 7 14 COUNCIL ANNOUNCEMENTS AND REPORTS: Mayor Pro Tem O'Malley read a letter into the record from Mathew Mack thanking the Council and city workers for installing the stop sign at Santa Barbara and EI Camino Real. (Exhibit A) Mayor Pro Tem O'Malley also announced that Planning Commissioner Tim Peterson would be leaving the Commission and that J.P. Patel would be filling his position. Council Member Luna reminded those present of the "educational meeting regarding mountain lions, tomorrow, 7:30 p.m. at the Lake Pavilion. PRESENTATIONS: 1. Proclamation declaring the week of May 1st — 7th as "Elks National Youth Week". Mayor Pro Tem O'Malley read the proclamation. Jerry Harter received the proclamation on behalf of the Elks and thanked Council for starting off their program. A. CONSENT CALENDAR: 1. City Council Meetinq Minutes — March 22 2005 ■ City Clerk Recommendation: Council approve the City Council minutes of March 22, 2005. [City Clerk] 2. Single Family Planned Development Zone Change 2004-0093 (1565 EI Camino Real /Alvarez) ■ Fiscal Impact: None. ■ Recommendation: Council adopt on second reading, by title only, draft Ordinance A approving Zone Change 2004-0093 based on findings. [Community Development] 3. Single Family Planned Development Zone Change 2004-0090 (7392 Santa Ysabel Ave. /Gannage) ■ Fiscal Impact: The project would likely have a slight negative impact on City revenues. ■ Recommendation: Council adopt on second reading, by title only, draft Ordinance A approving Zone Change 2004-0090 based on findings. [Community Development] Items Pulled: Council Member Luna Items #A-1 and 3. CC Draft Minutes 04/26/05 Page 3 of 7 15 MOTION: By Council Member Clay and seconded by Mayor Pro Tem O'Malley to approve Item #A-2. Motion passed 5:0 by a roll-call vote. (Ordinance No. 474) Item #A-1: Council Member Clay referred to his comments on page 4 under Item #B-1 and stated the way they were recorded was confusing. He asked that this item be brought back with all priorities listed in the proper order. PUBLIC COMMENT Eric Greening agreed with Council Member Luna's suggestion and felt attaching the chart with the votes in columns is best, and requested to change the spelling of George Beatty on page 6 to George Beatie. Mayor Scalise closed the Public Comment period. There was Council consensus to bring this item back with the amended list of priorities attached. Item #A-3: Council Member Luna stated he pulled this item, a PD-7, to vote against it. MOTION: By Council Member Clay and seconded by Mayor Pro Tem O'Malley to approve Item #A-3. Motion passed 4:1 by a roll-call vote. (Luna opposed) (Ordinance No. 475) B. PUBLIC HEARINGS: 1. Weed/Refuse Abatement Program ■ Fiscal Impact: None. ■ Recommendation: Council ' adopt the draft Resolution, declaring vegetative growth and/or refuse a public nuisance, commencing proceedings for the abatement of said nuisances, and placing all abatement fees on the San Luis Obispo County Special Tax Assessment for the fiscal year 2005-2006 Tax Roll. [Fire Department] Fire Chief Kurt Stone gave the staff report and answered questions of Council. PUBLIC COMMENT Eric Greening suggested the public be advised when performing weed abatement to start early in the morning if the weather turns hot to reduce fire danger and to look out for and protect young oak trees that will likely germinate this year. Mayor Scalise closed the Public Comment period. CC Draft Minutes 04/26/05 Page 4 of 7 16 MOTION: By Council Member Luna and seconded by Mayor Pro Tem O'Malley to adopt the draft Resolution, declaring vegetative growth and/or refuse a public nuisance, commencing proceedings for the abatement of said nuisances, and placing all abatement fees on the San Luis Obispo County Special Tax Assessment for the fiscal year 2005-2006 Tax Roll. Motion passed 5:0 by a roll-call vote. (Resolution No. 2005-036) C. MANAGEMENT REPORTS: 1. Transportation Enhancement Activities (TEA) Program ■ Fiscal Impact: Potential grant funds. ■ Recommendations: Council: 1. Approve proposed projects for submittal to San Luis Obispo Council of Governments (SLOCOG) for Transportation Enhancement Activities (TEA) Program funding; and, 2. Approve future allocation of "non federal" local matching funds for the projects awarded funding under the Transportation Enhancement Activities (TEA) Program. [Public Works] Public Works Director Steve Kahn gave the staff report and answered questions of the Commission. PUBLIC COMMENT Ursula Luna asked for clarification on where staff was suggesting realigning the recorded easement of the drive/access area in Stadium Park. Eric Greening asked questions regarding prioritization, consultation with Main Street, Stadium Park access, and community outreach for the Street Smarts program. Mayor Scalise closed the Public Comment period. MOTION: By Council Member Clay and seconded by Council Member Luna to approve proposed projects for submittal to San Luis Obispo Council of Governments (SLOCOG) for Transportation Enhancement Activities (TEA) Program funding; and, approve future allocation of "non federal" local matching funds for the projects awarded funding under the Transportation Enhancement Activities (TEA) Program. Motion passed 5:0 by a roll-call vote. 0 CC Draft Minutes 04/26/05 Page 5 of 7 17 2. Parks & Recreation Commission Appointments ■ Fiscal Impact: None. ■ Recommendation: Council review the applications of the five candidates and select, by ballot, two citizens for the Parks & Recreation Commission. [City Clerk] City Clerk Marcia McClure Torgerson gave the staff report and distributed ballots to Council. PUBLIC COMMENT– None City Clerk Torgerson tallied the Council vote sheets and announced the two candidates selected for the Parks and Recreation Commission are Robert Livick and Barbara Butz. D. COMMITTEE & LIAISON REPORTS: Mayor Scalise 1. County Mayor's Round Table: Hosted by Atascadero—City Managers came to speak with the Mayors on the issue of taxes. 2. Atascadero State Hospital Advisory Board: Meets Thursday, May 5th at 9:00 a.m. 3. Local Agency Formation Commissions (LAFCO): Meets tomorrow, update on the sphere of influence is on the agenda. Mayor Pro Tem O'Malley 1. Finance Committee: Will meet next Monday. 2. Economic Vitality Corporation, Board of Directors (EVC): Meets tomorrow, will be meeting the new CEO. 3. League of California Cities – Grassroots Network: Meets this Friday. Council Member Luna 1. SLO Council of Governments (SLOCOG) / S.L.O. Regional Transit Authority (SLORTA): Meets next Wednesday, agenda includes the budget for FY 2005-06 and the ride share budget. Council Member Pacas 1. Integrated Waste Management Authority (IWMA): Will meet May 11th 2. Atascadero Youth Task Force: Meets May 3rd, 7:00 and Children's Day in the Park will be held May 21 st at the Atascadero Lake Park. CC Draft Minutes 04/26/05 Page 6 of 7 18 E. INDIVIDUAL DETERMINATION AND/OR ACTION: City Manager City Manager Wade McKinney reported that the Herd property is zoned as Single Family Residential-X, and that the Atascadero Waste Alternative site did not advertise a clean up event, however in the events section of their website the last Saturday in April and October are listed as clean up days. F. ADJOURNMENT: Mayor Scalise adjourned the meeting at 8:11 p.m. to the next regularly scheduled meeting of the City Council on May 10, 2005. MEETING RECORDED AND MINUTES PREPARED BY: Grace Pucci, Deputy City Clerk The following exhibit is available for review in the City Clerk's Office: Exhibit A—Letter from Mathew Mack CC Draft Minutes 04/26/05 Page 7 of 7 19 ITEM NUMBER: A-4 DATE: 05/24/05 Isis , Ie e7e7 Atascadero City Council Staff Report - Community Development Department Planned Development 15 Text Amendment Zone Change 2005-0096 (City of Atascadero) RECOMMENDATION: Council approve on second reading, by title only, draft Ordinance A approving Zone Change 2005-0096 based on findings. DISCUSSION: The proposed Zone Change consists of a Text Amendment to prohibit lots created by Tract 2317 that border Separado Avenue ingress and egress on Separado Avenue (with the exception of lot #30 and lot #10). On May 10, 2005, the City Council conducted a public hearing to consider the zone change for first reading. FISCAL IMPACT: The proposed zone text amendment will be revenue neutral to the City. ATTACHMENTS: Attachment 1: Draft Ordinance A 20 Attachment 1: Draft Ordinance A DRAFT ORDINANCE A AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ATASCADERO, CALIFORNIA, APPROVING ZONE CHANGE 2005-0096 AMENDING ATASCADERO MUNICIPAL CODE SECTION 9-3.660 TO PROHIBIT INGRESS AND EGRESS FOR LOTS WITHIN THE PD-15 OVERLAY ZONE ONTO SEPERADO AVENUE WITH THE EXCEPTION OF LOT #10 AND LOT #30. (City of Atascadero) The City Council hereby finds and declares as follows: WHEREAS, an application has been received from the City of Atascadero (6905 El Camino Real, Suite 6, Atascadero, CA 93422), to consider a project consisting of a zone text change to prohibit ingress and egress for lots within the PD-15 overlay zone onto Separado Avenue with the exception of Lot#10 and Lot#30; and, WHEREAS, the text amendment is in substantial conformance to certified Mitigated Negative Declaration #99029, prepared for the PD-15 zone change, as prepared in accordance with the State and local guidelines for implementation of the California Environmental Quality Act (CEQA);and, WHEREAS, the Planning Commission has determined that it is in the best interest of the City to enact this amendment to the Zoning Ordinance to protect the health, safety and welfare of its citizens by applying orderly development of the City; and, WHEREAS, the laws and regulations.relating to the preparation and public notice of environmental documents, as set forth in the State and local guidelines for implementation of the California Environmental Quality Act (CEQA) have been adhered to; and, WHEREAS, a timely and properly noticed Public Hearing upon the subject Zone Change application was held by the Planning Commission of the City of Atascadero at which hearing evidence, oral and documentary, was admitted on behalf of said Zoning amendments; and, WHEREAS, the Planning Commission of the City of Atascadero, at a duly noticed Public Hearing held on March 1, 2005, studied and considered Zone Change 2005-0096, after first studying and considering the certified Mitigated Negative Declaration prepared for the project; and, WHEREAS, the City Council of the City of Atascadero, at a duly noticed Public Hearing held on May 10, 2005, studied and considered Zone Change 2005-0096, after first studying and considering the certified Mitigated Negative Declaration prepared for the project; and, 21 NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF ATASCADERO HEREBY ORDAINS AS FOLLOWS: SECTION 1. Findings for Approval of Zone Text Change 2005-0096. The City Council finds as follows: 1. The zone change is consistent with General Plan policies and all other applicable ordinances and policies of the City. 2. Amendment of the zoning ordinance will provide for the orderly and efficient use of lands where such development standards are applicable. 3. Modification of development standards or processing requirements is warranted to promote orderly and harmonious development. 4. The zone change will not, in itself, result in significant environmental impacts. SECTION 2. Approval. The City Council of the City of Atascadero, in a regular session assembled on May 24, 2005 resolved to approve on second reading, by title only, an ordinance that would amend the City Zoning code text with the following: 9-3.660 Establishment of Planned Development Overlay Zone No. 15: (PD1 5). Planned Development Overlay Zone No. 15 is established as shown on the official zoning map (Section 9-1.102). All development within the district shall be in conformance with the development standards and established herein: (a) Purpose.The purpose of the district is to allow the creative clustering of residentialarcels to reserve sensitive environmental p features and provide common open sace by allowing lot size II smaller than the underlying zone's minimum. (b) Development Standards. (1)The maximum density shall not exceed two (2) dwelling units for each gross acre of land. Individual lot sizes may be smaller provided the overall project density conforms to the specified maximum density. (2) Individual lot sizes shall be established in conjunction with a Tentative Tract Map and shall not be required to comply with the minimum lot size criteria for the Residential Single-Family one-half (%2) Acre Minimum District (RSF-X), provided the overall density conforms to the specified maximum density. (3) City sewer service and water service from the Atascadero Mutual Water Company shall be provided to all residential lots. (4) In no case shall a residential lot size be less than one-quarter(1/a) acre, nor exceed a three- to-one (3:1) depth-to-width ratio. (5)A master plan of development shall be approved in conjunction with any Tentative Tract Map application.All subdivision improvements and subsequent development shall be consistent with the master plan of development.The master plan of development shall contain the following: (i)A site plan indicating land use, common open space, circulation, lot sizes, slopes, native trees and common landscape features; (ii)A statistical summary of the projects land uses and densities; (iii) A statement of project features that will provide a public benefit; (iv) Any special development standards that will be required of future development; (v) Individual building plans and elevations are not required. C6) Access. No lot shall take access from Seperado Avenue with exception to Lot 10 and Lot 30 to serve the primary residence. Secondary driveways on Lot 10 and 30 are prohibited 22 SECTION 3. A summary of this ordinance, approved by the City Attorney, together with the ayes and noes, shall be published twice: at least five days prior to its final passage in the Atascadero News, a newspaper published and circulated in the City of Atascadero, and; before the expiration of fifteen (15) days after its final passage in the Atascadero News, a newspaper published and circulated in the City of Atascadero. A copy of the full text of this ordinance shall be on file in the City Clerk's office on and after the date following introduction and passage and shall be available to any interested member of the public. SECTION 4. Effective Date. This ordinance shall be effective at 12:01 a.m. on the 31St day after its passage. INTRODUCED at a regular meeting of the City Council held on , and PASSED and ADOPTED by the City Council of the City of Atascadero, State of California, on by the following roll call vote: AYES: NOES: ABSTAIN: ABSENT: CITY OF ATASCADERO By: Wendy Scalise, Mayor ATTEST: Marcia McClure Torgerson, C.M.C., City Clerk APPROVED AS TO FORM: Patrick L. Enright, City.Attorney 23 ITEM NUMBER: A-5 DATE: 05/24/05 i9is s IW-9 CAI Atascadero City Council Staff Report City Manager's Office Parking & Business Improvement Area Assessment RECOMMENDATION: City Council adopt the draft Resolution of Intention, declaring intent to levy annual Downtown Parking & Business Improvement Area assessment, and set a public hearing for June 14, 2005. DISCUSSION: Background: The City of Atascadero established a Downtown Parking and Business Improvement Area in 1986 (Chapter 11 of the Atascadero Municipal Code) for the purpose of acquisition, construction or maintenance of parking facilities, decoration of public places, promotion of public events, and general promotion of business activities in the downtown area. The formation and operation of a Business Improvement Area is governed by the California Streets & Highways Code (Section 36500 et. Seq.) Historically, the budget for the Business Improvement Area is submitted in conjunction with the City's annual budget. An annual draft Resolution of Intention declaration of intent to levy annual Downtown Parking and Business Improvement Area assessment and holding a public hearing is required by the California Streets & Highways Code for the City to continue to levy and collect the assessment. Analysis: The Streets & Highways Code requires that the "advisory board" provide a report to the City Council annually for the expenditure of funds derived from the assessment paid by businesses in the downtown area. The Business Improvement Association Board of Directors was dissolved in 2001 and Main Street's Board of Directors has taken its place. The report identifies the proposed improvements and activities for the area, based upon the National Main Street Program's four-point approach. The report does not propose any changes to the area or of the assessment. The Atascadero Main Street Board of Directors are proposing expenditures for 2005-06 with the Downtown Parking and Business Improvement Area funds as follows: 24 ITEM NUMBER: A-5 DATE: 05/24/05 BIA Funds requested for 2005-2006 $10,500 Carry over from 2004-2005 $ 0 Total Proposed Funding Available $10,500 2004-2005 Proposed Expenditures: Signage & Banners $ 1,500 Membership Directory $ 1,500 Streetscape Maint./Improvement $ 1,500 Parking/Lighting/Art Coordination $ 1,000 Winter Wonderland Street Fair $ 4,000 Spring Time in the Colony $ 500 Sweetheart Stroll (Valentine's Day) 500 Total Proposed Expenditures for 2003-04 $10,500 Fund Residual $ 0 Consistent with State law, the City Council is required to adopt a draft Resolution of Intention and set a public hearing to receive public comment prior to the assessment being collected. Staff is proposing that the hearing be conducted at the next regular meeting scheduled for June 14, 2005. FISCAL IMPACT: The City receives approximately $10,500 annually from the Downtown Parking and Business Improvement Area assessments. ALTERNATIVES: 1. The City Council may set an alternative date for the public hearing. 2. The City Council may choose not to adopt the Resolution of Intention to levy assessment, thereby discontinuing the collection of Downtown Parking and Business Improvement Area assessments. Alternative 2 is not recommended because the Downtown Parking and Business Improvement Area assessment revenue provides funding to Atascadero Main .Street to effectuate downtown revitalization activities and programs. ATTACHMENTS: 1. Draft Resolution of Intention 25 DRAFT RESOLUTION A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ATASCADERO DECLARING THE CITY'S INTENT TO LEVY AN ANNUAL ASSESSMENT PURSUANT TO STREETS & HIGHWAYS CODE SECTION 36500 ET. SEQ. WHEREAS, the City of Atascadero has formed a Parking and Business Improvement Area, pursuant to Section 36500 of the Streets &Highway Code of the State of California; and, WHEREAS, the City Council has received a report pursuant to Section 36533 of said code; and, WHEREAS, the City council has approved such report and is required to adopt a resolution of intention pursuant to Section 36534; and, WHEREAS, the report proposes no changes to the boundaries or assessment amounts that are currently applies in said area; and, WHEREAS, the report identifies the proposed improvements and activities for the area based upon the National Main Street Program four point approach. Such report is on file and available for inspection at the office of the City Clerk. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF ATASCADERO CALIFORNIA DOES HEREBY RESOLVE AS FOLLOWS: Section 1. The City Council herby declares its intent to levy and collect assessments within the Parking and Business Improvement Area for fiscal year 2005-2006. Section 2. The area is known as the Downtown Parking and Business Improvement Area. The area is generally located in the downtown core including the area between Highway 41 on the south, Rosario on the north, Highway 101 on the west, and an irregular boundary generally along Santa Ysabel on the east. Section 3. The City Ordinance, consistent with Section 36527 of the Streets and Highways Code proposes the following uses of Area revenue: a. The acquisition, construction, or maintenance of parking facilities for the benefit of the area. b. Decoration of public place in the area. c. Promotion of public events that are to take place on or in public places in the area. d. The general promotion of business activities in the area. 1 26 Section 4. A report is on file in the office of the City Clerk, which includes a full and detailed description of the improvements and activities to be provided in the fiscal year 2005- 2006, the boundaries of the area, and the proposed assessments to be levied upon the businesses within the area for fiscal year 2005-2006. Section 5. The City council will hold a public hearing on the levy of the proposed assessment for fiscal year 2005-2006 on June 14, 2005 at 7:00 p.m., or sometime shortly thereafter, in the City Council Chambers. Section 6. Written or oral protests may be made at the hearing. The form of the protests shall comply with Sections 36524 and 36524 of the Streets and Highways Code. Section 7. The City Clerk is hereby directed to give notice of the public hearing by causing this resolution to be published once in a newspaper of general circulation in the city not less than seven days before said hearing. On motion by Council Member , and seconded by council Member the foregoing Resolution is hereby adopted following roll call vote: AYES: NOES: ABSENT: ABSTAINED: ADOPTED: CITY OF ATASCADERO Wendy Scalise, Mayor ATTEST: Marcia McClure Torgerson, C.M.C., City Clerk APPROVED AS TO FORM: Patrick L. Enright, City Attorney 2 27 ITEM NUMBER: A-6 DATE: 05/24/05 1818 19 8 Atascadero City Council Staff Report - City Manager's Office Temporary City Hall Interior Improvement Project RECOMMENDATIONS: Council: 1. Authorize the City Manager to execute a contract with Wysong Construction Company, in the amount of $426,000.00, for the Interior improvements (Framing, Sheetrock, Doors); and, 2. Authorize the Director of Administrative Services to allocate $511,200.00 toward the completion of the Interior Improvements Project. DISCUSSION: The City will be leasing the building at 6901 El Camino Real, formerly Creekside Lanes. The building has been completely cleared and is now a shell with all repairs being made in preparation of the lease agreement. The Change in occupancy from an entertainment facility to that of government offices requires that interior spaces be altered and upgraded to accommodate employee usage and needs. The tenant improvements include framing, sheetrock and doors. This project was advertised from April 20th to May 4th, 2005. Two bids were received. Bids were reviewed for accuracy and compliance with City of Atascadero Procurement Policy requirements, and Wysong Construction Company was found to be the successful low-bidder, with a proposal of $426,000.00. 28 EXPENDITURES Construction Contract $426,000.00 20% Contingency $85,200.00 TOTAL ESTIMATED EXPENDITURE: $511,200.00 FISCAL IMPACT: $511,200.00 ALTERNATIVES: None. ATTACHMENTS: Bid Summary 29 City of A t Office of the City Clerk BID SUMMARY TO: City Manager's Office FROM: Marcia McClure Torgerson, C.M.C., City Clerk BID NO.: 2005-010 OPENED : 05/04/2005 3:00 p.m. PROJECT: Annex II — Interior Improvements Two (2) bids were received and opened today, as follows: Bidder Base Bid Simons Construction Inc. P.O. Box 997 $534,943.98 Templeton, CA 93465 Wysong Construction Company 8720-B EI Camino Real $426,000.00 Atascadero, CA 93422 Attachments: 2 bids 30 ITEM NUMBER: A-7 DATE: 05/24/05 t' 1918 a 1979 Atascadero City Council Staff Report — City Manager's Office Relocation Guidelines - Joint Resolution RECOMMENDATION: Council approve the draft Joint Resolution of the City Council of the City of Atascadero and the Board of Directors of the Community Redevelopment Agency of Atascadero Adopting Relocation Guidelines. DISCUSSION: This is a procedural step implementing the Redevelopment Plan. Potential project included in the Downtown priorities established by the Board and City Council may require relocation. Background: The City of Atascadero may from time to time undertake certain public improvement projects and other actions that might lead to the displacement of individuals and businesses. The California Department of Housing and ,Community Development (HCD) has adopted regulations to assist in the implementation of the California Relocation Assistance Law (CRAL), which regulations are found in Articles 1 through 5 of Subchapter 1 of Chapter 6 of Division 1 of Title 25 of the California Code of Regulations (the "Relocation Guidelines") California law requires that "[e]ach public entity before undertaking or participating in activity which will result in the displacement of persons shall, adopt rules and regulations that implement the requirements of the Act, are in accordance with the provisions of the Guidelines, and prescribe additional procedures and requirements that are appropriate to the particular activities of the public entity and not inconsistent with the Act or Guidelines." Conclusion: Given the legal requirement to establish Relocation Guidelines, Staff recommends adoption of the draft resolution. 31 ITEM NUMBER: A-7 DATE: 05/24/05 FISCAL IMPACT: The costs associated with providing relocation assistance are unique to each instance under which it would be provided, therefore cannot be known in advance. ALTERNATIVES: 1. Decline to approve. 2. Create rules and regulations that implement the requirements of California Relocation Assistance Law. Because of the legal requirement to adopt rules and regulations related to the implementation of California Relocation Assistance Law, and the economy achieved by adopting existing California State rules and regulations to implement the requirements of California Relocation Assistance Law, neither alternative is recommend. ATTACHMENTS: Draft Joint Resolution. 32 DRAFT RESOLUTION JOINT RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ATASCADERO AND THE BOARD OF DIRECTORS OF THE COMMUNITY REDEVELOPMENT AGENCY OF ATASCADERO ADOPTING RELOCATION GUIDELINES WHEREAS pursuant to Chapter 16 of Division 7 of Title 1 of the California Government Code, individuals and businesses displaced as a direct result of governmental actions may be entitled to receive relocation assistance (the "California Relocation Assistance Law" or "CRAL"); and WHEREAS, Section 7267.8 of the California Government Code requires that all public agencies adopt rules and regulations to implement payments and to administer relocation assistance under the CRAL, and that such local rules be consistent with rules and regulations adopted by the California Department of Housing and Community Development ("HCD"); and WHEREAS, the City of Atascadero ("City") from time-to-time undertakes certain public improvement projects and other actions that might lead to the displacement of individuals and businesses as described in the CRAL; and WHEREAS, the Community Redevelopment Agency of Atascadero ("Agency") from time-to-time undertakes certain public improvement projects and other actions pursuant to the City's previously adopted Redevelopment Plan that might lead to the displacement of individuals and businesses as described in the CRAL; and WHEREAS, HCD has adopted regulations to assist in the implementation of the CRAL, which regulations are found in Articles 1 through 5 of Subchapter 1 of Chapter 6 of Division 1 of Title 25 of the California Code of Regulations (the "Relocation Guidelines"); and WHEREAS, section fi006(a) of the Relocation Guidelines provides, in part, that "[e]ach public entity before undertaking or participating in activity which will result in the displacement of persons shall, adopt rules and regulations that implement the requirements of the Act, are in accordance with the provisions of the Guidelines, and prescribe additional procedures and requirements that are appropriate to the particular activities of the public entity and not inconsistent with the Act or Guidelines." NOW, THEREFORE, the City Council of the City of Atascadero and the Board of Directors of the Community Redevelopment Agency of Atascadero resolve as follows: 1. The Relocation Guidelines, as they may be amended and/or supplemented from time-to-time by HCD, are hereby adopted by City Council as the City's respective local rules and regulations for implementing the requirements of the CRAL. 2. The Relocation Guidelines, as they may be amended and/or supplemented from time-to-time by HCD, are hereby adopted by Agency Board of Directors as the Agency's respective local rules and regulations for implementing the requirements of the CRAL. 33 3. The City Manager in consultation with the City's legal counsel and the City Council, and the Executive Director, in consultation with Agency's legal council and the Board of Directors, are hereby authorized to promulgate such additional rules and regulations and/or make such other modifications to the rules and regulations, consistent with the CRAL and the Relocation Guidelines, as they deem necessary and proper to ensure that relocation assistance is provided in a manner consistent with the CRAL and the Relocation Guidelines. IN WITNESS WHEREOF, we, the members of City Council of the City of Atascadero and the members of the Board of Directors of the Community Redevelopment Agency of Atascadero, do hereby adopt this Resolution on this th day of , 2005. PASSED AND ADOPTED at a regular meeting of the City Council of the City of Atascadero, California, held on this day of , 2005. CITY OF ATASCADERO COMMUNITY REDEVELOPMENT AGENCY By: By: Wendy Scalise,Mayor Becky Pacas, Chairperson ATTEST: APPROVED AS TO FORM: By: By: Marcia McClure Torgerson, City Clerk Patrick L. Enright, City Attorney 34 ITEM NUMBER: A-8 DATE: 05/24/05 "p 0 p CIA r. 1918 11970 Atascadero City Council Staff Report — City Manager's Office Lease Agreement with Community Redevelopment Agency RECOMMENDATION: Council approve the Lease Agreement between the City of Atascadero and the Community Redevelopment Agency of Atascadero, and authorize the Mayor to sign said Lease Agreement. DISCUSSION: Background: The original City Hall was severely damaged as a result of the San Simeon earthquake on December 22, 2003, which caused City operations to relocate into a temporary facility. Dr. James Harrison and other owners have proposed a new commercial project on the property where the Annex is located. Conceptual plans of the new project call for the facility currently occupied by City Hall Annex to be demolished. As the investigation of the original City Hall began to reveal the extent of the damage, it became apparent that City offices would be displaced for a period longer than the term of the current Annex lease. Staff spent considerable time exploring a variety of options for the relocation of the City's offices, including temporary trailers, construction of a steel frame building, purchase of an existing facility, and leasing space. As research was made into available construction sites and existing buildings, it became apparent that each of these alternatives included constraints that made each option infeasible. Temporary trailers and construction of a steel frame building each had timing, site, and cost issues. There would also be problems with construction or purchase of an existing facility, because the City does not have such funds readily available. At the time, there were no large buildings available for lease; leasing another facility became a viable option only after the Redevelopment Agency purchased the Creekside building. When the City began lease negotiations with the Redevelopment Agency, it was, of course, with the intent to keep the lease payment as small as possible. When the option of leasing space was examined, staff learned that market rate varies depending upon the location and type of building to be leased. However, the average market rate is approximately $1.00 per square foot. Therefore, at 31,133 square feet, the City's monthly lease payment to the Redevelopment Agency would be $31,133.00. 35 ITEM NUMBER: A-8 DATE: 05/24/05 City and Agency staff has negotiated a Lease Agreement that will enable the City to utilize the Creekside building as a replacement City Hall Annex. Key features of the Lease Agreement are as follows: ➢ Four (4) year term. ➢ Option of either party to terminate Lease upon thirty days written notice. ➢ City to tender$31 ,133.00 per month to Agency. ➢ City is authorized to make interior improvements and alterations. ➢ City is responsible for the maintenance of the interior portions of the leased space. ➢ All fixtures installed by the City shall remain City property. Conclusion: City and Agency Staff negotiated the Lease Agreement over a two-month period, and concur on the terms and conditions contained therein. Staff recommends approval of said Lease Agreement. FISCAL IMPACT: The City of Atascadero will tender $373,596.00 each year of the Agreement for a total of $1,494,384.00 over the term of the Lease. The City will be reimbursed by FEMA for the Lease payments made during the term. ALTERNATIVES: 1. The City Council may alter the terms and conditions of the Lease Agreement. 2. The City Council may decline to lease the real property. Alternative 1 in not recommended given the time and effort of City Staff and Agency Staff in reaching agreement. Alternative 2 is also not recommended, because the building currently under lease by the City is slated for demolition as part of the greater Colony Square Project. ATTACHMENT: Lease Agreement for the City of Atascadero, 6901 EI Camino Real 36 DRAFT#3 LEASE AGREEMENT 5/11/05 FOR THE CITY OF ATASCADERO 6901 EL CAMINO REAL THIS LEASE AGREEMENT is entered into on this day of , 2005, by and between the Atascadero Community Redevelopment Agency, California, a municipal corporation (hereinafter referred to as "Agency"), and the City of Atascadero, California, a municipal corporation (hereinafter referred to as "City"). RECITALS WHEREAS, City desires to operate a City Hall out of an Agency owned property, and has agreed to rent said space from Agency; and WHEREAS, the Agency, in consideration of the promises and covenants of City set forth herein, agrees to rent said property to City for the purpose of operating a City Hall, and for no other purpose. NOW, THEREFORE, the parties hereto agree as follows: 1. Premises. The Agency will rent to City the premises located at 6901 El Camino Real, Atascadero; California, (hereinafter referred to as "Premises"), for City Hall activities within the City of Atascadero. 2. Term. The term of this Lease Agreement (hereinafter referred to as "Lease") shall have a period of four (4) years beginning on June 1, 2005 and ending June 1, 2009, unless sooner terminated is provided herein. In the event the City shall continue in possession of the premises after the expiration of the Lease term, such possession shall not be considered a renewal of this Lease but a month to month agreement which shall be governed by the terms of this Lease and which may be terminated at any time by either party giving the other thirty (30) days written notice of the termination. 3. Option to Terminate. City shall have the option to terminate this Lease if the premises are destroyed or damaged to the extent that they cannot be repaired within sixty (60) days. If the damage can be repaired with sixty (60) days, it shall be the duty of the Agency to make such repairs promptly. Agency and City shall have the right to terminate this Agreement, without cause, by giving not less than thirty (30) days written notice of termination. 4. Alterations to Agency's Facilities. Improvements/Alterations by Agency: a. Agency recognizes and understands that any tenant improvements requested by the City may be subject to the provisions contained in the California Labor Code (commencing with Section 1720) relating to general prevailing wage rates and other pertinent provisions therein. 1 37 b. Agency shall comply and stay current with all applicable building standards, which may change from time to time. 10 c. The Agency and/or its authorized agents shall have the right to enter the premises at all reasonable times to inspect the condition of the premises, and to make necessary repairs. d. The Agency is committed to the revitalization and enhancement of Downtown; to this end, the Agency reserves the right to enter and improve the Agency- owned property, excluding the interior space leased by the City. The Agency will notify the City of any improvement to the property and will not impact entrances and exits of the building. The Agency is involved in a comprehensive revitalization program for Downtown, which will include improvements on this property as well as surrounding property. Improvements may include building fagade improvements, landscape, parking, access, lighting, creek stabilization, and/or any other activity/action that is benefiting of the Agency and/or the real property, or address health and safety issues and concerns. improvements/Alterations by City: a. Any alterations, improvements or installation of fixtures to be undertaken by City shall have the prior written consent of Agency after City has provided plans for any such proposed alterations, improvements or fixtures to Agency in writing. Agency shall not unreasonably withhold such consent. b. City recognizes and understands that any renovation work and/or improvements undertaken by the City may be subject to the provisions contained in the California Labor Code (commencing with Section 1720) relating to general prevailing wage rates and other pertinent provisions therein. c. Any and all alterations or improvements made to the leased premises by City shall become the property of Agency upon expiration or terminating of this lease. d. All fixtures installed by the City shall remain City property, and may be removed by City at or prior to the expiration of this lease, provided, however, that such removal does not cause injury or damage to the leased premises, or in the event it does, the City shall restore the premises. 5. Rental. City shall pay Thirty-One Thousand One Hundred Thirty-three Dollars and No Cents ($31,133.00) rent per month to the Agency commencing June 1, 2005 through June 1, 2009, on the first day of each month. At the option of the City, advance monthly rental payments may be made for any period through the term of this Agreement (e.g., quarterly), provided, however, in the event of holding over, this sentence shall have no force or effect and payments shall be made on the first day of each month. 2 38 Agency reserves the right to renegotiate this paragraph (section) subject to 60 days written notice. 6. Telephone, Utilities & Custodial Services. City will install and pay for telephone service, electric power, gas and heat, water and sewer service, trash collection, and all other services and utilities supplied to the leased premises during the entire term of this Lease, and shall promptly pay all connection and termination charges therefore, and shall provide custodial services for the interior and exterior, to include any landscaping, of the facility at its expense. 7. Maintenance of Facility. Agency shall keep the leased premises in such condition, and in compliance with federal, state, and local laws, ordinance, rules and regulations relating to fire, health, and safety. City shall, during the term of this lease, maintain the interior portions of the leased space in a good, clean and safe condition. City, at its own expense, shall repair all deteriorations or damage to the leased space or building as a result of lack of ordinary care. Except as otherwise provided in this lease, Agency shall perform, at Agency's sole expense, all repairs and maintenance for roof, exterior, and plumbing for the building. Any repairs by Agency shall be made promptly with first-class materials, in a good and workmanlike manner. Except in the case of an emergency, Agency shall give City twenty-four (24) hours notice of its intention to enter the building for the purpose of making necessary repairs. Except for cases of emergency, Agency shall make all repairs required hereunder as soon as is practical. In the event Agency has not made a repair referred to in a written notice from City to Agency within thirty (30) days after the date of that notice, City shall have the right to make the repair and be reimbursed by the Agency. If the full amount of the reimbursement is not delivered by Agency to City within ten (10) days after City's delivery to Agency of a written statement or bill evidencing the cost of the repair, City shall have the right to deduct the cost of the repair from the next monthly rent payable to Agency. City shall notify Agency promptly of any damage to the leased premises resulting from or attributable to the acts or omissions of City, its invitees or its authorized representatives, and thereafter promptly repair all such damage at City's sole cost and expense. 8. Insurance Coverage. City will provide public liability coverage, property damage and insurance in the amount of One Million Dollars and No Cents ($1,000,000.00), in both City's and the Agency's name. City shall file with the Secretary of the Redevelopment Agency copies of the Certificates of Insurance for said insurance coverage indicating that the City of Atascadero, its agents, officers, and employees are additionally insured under said policies. Said Certificate shall state that the policy(s) will not be terminated or cancelled without thirty (30) days advance written notice to Agency of termination or cancellation thereof. 3 39 Agency reserves the right to renegotiate this paragraph (section) subject to 30 days written notice. 9. No Joint Venture. Nothing in the Agreement is intended nor shall create between Agency and City an employer/employee relationship, a principal/agent relationship, or a joint venture relationship. Agency shall neither have nor exercise any control or direction over the methods by which City shall perform functions and/or provide services. City shall have no claim under this Agreement or otherwise against Agency for worker's compensation, unemployment compensation, vacation pay, sick leave, retirement benefits, Social Security benefits, disability insurance benefits, unemployment insurance benefits, or any other employee benefits, all of which shall be the sole responsibility of City. City shall indemnify and hold Agency, its members, agents, or employees, harmless from any and all cost (including attorney's fees), loss, or liability by or on behalf of any member, agent, or employee of City, or by any government entity. The occupancy of the premises by City shall be subject to reasonable rules and regulations of Agency, and City shall be subject to all provisions of applicable local, state and federal law. 10.Parking. City acknowledges and agrees that any parking spaces provided by Agency in and around the leased premises are solely for the convenience of the customers and employees of City, unless otherwise specifically designated by the Agency in writing. Agency shall have the right to establish and enforce reasonable rules and regulations concerning the use of the parking area. 11.Default: In the event that City shall become delinquent in payment of rent or shall City fail to keep or perform any of the terms or conditions of this Agreement, Agency shall give City thirty (30) days written notice of default, at the expiration of which period or at any time thereafter while such default continues, Agency may terminate this Agreement and exercise such remedies as Agency may have at law. 12.Governing Law: The parties agree that the laws of the State of California shall govern this Ag reernent.'Agency and City agree that any suit brought by either party against the other arising out of the performance of this Agreement shall be brought and maintained in the Superior Court of San Luis Obispo County. 13.Disabilities Act: City agrees to comply with all applicable provisions of the Americans with Disabilities Act, with regard to alterations, maintenance, or restoration to the Premises. 14.Voluntary Transfers: City shall not sell, transfer or assign this Lease, or any part thereof, or interest therein, or hypothecate or grant any rights hereunder, or create or permit any subleases for the leased premises. 15.Nondiscrimination: City shall not discriminate, in anyway, against any person on the basis of age, sex, race, color, creed, national origin or disability in connection with or related to the performance of this Lease. 4 40 16.Mutual Indemnification. It is mutually understood and agreed that: a. Neither City, nor any officer or employee thereof, shall be responsible for any damage or liability occurring by reason of anything done or omitted to be done by Agency under or in connection with any work, authority or jurisdiction delegated to Agency under this agreement. It is also understood and agreed that, pursuant to Government Code Section 895.4, Agency shall fully indemnify and hold City harmless from any liability imposed for injury (as defined by Government Code Section 810.8) occurring by reasons of anything done or omitted to be done by Agency under or in connection with any work, authority or jurisdiction delegated to Agency under this agreement. b. Neither Agency nor any officer or employee thereof, shall be responsible for any damage or liability occurring by reason of anything done or omitted to be done by City under or in connection with any work, authority or jurisdiction delegated to City under this agreement. It is also understood and agreed that, pursuant to government Code Section 895.4, City fully indemnify and hold Agency harmless from any liability imposed for injury (as defined by Government Code Section 810.8) occurring by reasons of anything done or omitted to be done by City under or in connection with any work, authority or jurisdiction delegated City under this agreement. 17.Binding on Successors: City and Agency agree that each of the terms, conditions, and obligations of this Lease Agreement shall extend to and bind, or inure to the benefit of the respective parties hereto, and each and very one of their respective heirs, executors, administrators, representatives, successors and assigns. 18.Notices. Any notices, payments or consents required or desired to be served or given by either party upon the other shall be addressed to the respective parties as set forth below: Agency: City: Deputy Executive Director City Manager Community Redevelopment Agency City of Atascadero 6905 EI Camino Real, Suite 6 6905 EI Camino Real, Suite 6 Atascadero, CA 93422 Atascadero, CA 93422 or, the respective parties shall designate such addresses as necessary from time to time. 19.Heading Not Controlling: Headings used in this Agreement are for reference purposes only and shall not be considered in construing this Agreement. 20.Entire Lease Agreement: This Lease Agreement contains the entire agreement between Agency and City. All previous proposals and communications relative to this Agreement, whether oral or written, are hereby superseded except to the extent that they have been incorporated into this Agreement. No future waiver of, or exception to any of the terms, conditions, and provisions of this Agreement shall be considered valid unless specifically agreed to in writing by all parties. 5 41 21.Partial Invalidity: If any provision in this Lease Agreement is held by a court of competent jurisdiction to be invalid, void, or unenforceable, the remaining provisions shall nevertheless continue in full force without being impaired or invalidated in any way. 22.Waiver: The waiver by any party to this Lease Agreement of a breach of any provision hereof, shall be in writing and shall not operate or be construed as a waiver of any other or subsequent breach hereof, unless specifically stated in writing. 23.Execution: The undersigned acknowledge having read and understood the foregoing. IN WITNESS WHEREFORE, the parties hereto have executed this agreement on the day and year above and below written. Community Redevelopment Agency City of Atascadero Date: , 2005 Date: , 2005 By: By: Wade G. McKinney, Executive Director Wendy Scalise, Mayor ATTEST: APPROVED AS TO FORM: By: By: Marcia McClureTorgerson, Agency Secretary Patrick L. Enright, City Attorney 6 42 ITEM NUMBER: A-9, DATE: 05/24/05 ■iFall' e a 1970 Atascadero City Council Staff Report — Fire Department Weed Abatement — Awarding of Contractor Bid RECOMMENDATION: Council authorize the City Manager to execute a contract with Jack R. Bridwell for weed abatement. DISCUSSION: A legal notice, inviting sealed bids, was printed in the Atascadero News and The Tribune from April through April 22, 2005. A total of 25 Invitations to Bid were distributed, and one bid was received. This bid for weed abatement contract was opened on Monday, May 2, 2005 at 2:00 p.m. See attached bid summary. FISCAL IMPACT: None. Funds are budgeted, annually, to cover the costs of the weed abatement program, and are recovered through assessments on property tax bills of those parcels abated. ALTERNATIVES: Council can reject the bid and re-bid the contract. This alternative is not recommended because it would not allow the appropriate time to enter assessments on the 2005-2006 tax roll. ATTACHMENTS: Contractor Bid Summary 43 CITY OF ATASCADERO Office of the City Clerk BID SUMMARY TO: Fire Department FROM: Marcia McClure Torgerson, C.M.C., City Clerk OPENED: 2:00 p.m. — 05/02/05 PROJECT: Weed Abatement BID NO.: 2005-008 1 Bid was received and opened today, as follows: Bidder Total Bid Price r / hr 75.00 entire crew per 1/2hr. Jack R. Bridwell $50.00 tractor per i /$ Attachment: 1 bid 44 ITEM NUMBER: A- 10 DATE: 05/24/05 lisp MIN 1979 Atascadaro City Council Staff Report — Public Works Department Woodridge/Las Lomas Final Map 2004-0099 (Tract 2608) Halcon Road (TTM 2004-0047) (R.W. Hertel and Sons) RECOMMENDATIONS: Council: 1. Accept Final Parcel Map 2004-0099 (Tract 2608); and, 2. Reject, without prejudice to future acceptance, the offer of dedication for Access Easement over Lots 36, 37, 38 and Ranata Circle and for Sanitary Sewer Easement; and, 3. Authorize City Manager to execute Subdivision Improvement Agreement; and, 4. Authorize City Manager to sign Agreements to Provide Housing Units for Persons and Family of Low Income; and, 5. Authorize City Manager to sign Agreements to Provide Housing Units for Persons and Families of Very Low Income; and, 6. Authorize City Manager to sign City of Atascadero Workforce and Affordable Housing Selection Plan. DISCUSSION: Vesting Tentative Tract Map 2004-0047 / Tract 2608 was approved by the Planning Commission on May 18, 2004. The subdivision includes 135 multi- family residential units, in accordance with the approved Woodridge Master Plan of Development. Pursuant to California Government Code Section 66440 the approving legislative body (City Council) cannot deny a final map that is consistent with an approved tentative map. The legislative body is also required to accept, accept subject to improvement, or reject on behalf of the public, any real property offered for dedication for public use in conformity with the terms of the offer of dedication. Staff recommends rejecting the offer of dedication for access easements and sanitary sewer easements without prejudice to future acceptance. Staff has determined that the Final Tract Map is consistent with approved Vesting Tentative Tract Map. 45 ITEM NUMBER: A- 10 DATE: 05/24/05 FISCAL IMPACT: None ATTACHMENTS: Exhibit A: Final Map 2004-0099 (Tract 2608) 46 ITEM NUMBER: A- 10 DATE: 05/24/05 Exhibit A Final Map 2004-0099 (Tract 2608) Halcon Road R.W. Hertel and Sons o CN Y z a VWR Ilia J � Ybj k ti 9 n I > to r 8 4• �. � \ z \ a , p O \\ rv`C•=� a � �yT G ��IW.rcY, 241ap. 47 ITEM NUMBER: A- 10 DATE: 05/24/05 � n Ella 41 46 a � ztia o � a z ` w �. �} axa3 �3 $3 kik-.a zee Re R9s dAMr-R?..43+s1z 1��-iBla:?3; - - _I I 5 .d rT- JT Vat 31 14 I J C 1 } I '�.ay t:��gµw ♦a�._;�+, �*v �`,MY yr YJ ''4 �+3 ~ '. � 1 ,� •ions, � b B "n v_3 1 � � � � c 48 ITEM NUMBER: A-11 DATE: 05/24/05 n ® Q0 a o 1918 1 8 Atascadero City Council Staff Report - Public Works Department Woodridge/Las Lomas Final Map 2004-0097 (Tract 2525-2) Halcon Road (TTM 2003-0027) (R.W. Hertel and Sons) RECOMMENDATIONS: Council: 1. Accept Final Parcel Map 2004-0097 (Tract 2525-2); and, 2. Reject, without prejudice to future acceptance, the offer of dedication for Public Right-of-Way and for Public Utility Easements; and, 3. Authorize City Manager to execute Subdivision Improvement Agreement; and, 4. Authorize the Public Works Director to accept and sign off site easements agreements for Public Road and Slopes; and, 5. Authorize City Manager to sign Agreements to Provide Housing Units for Persons and Family of Low Income; and, 6. Authorize City Manager to sign Subdivision Annexation and Assessment and Parcel Tax Authorization Deferral Agreement. DISCUSSION: Vesting Tentative Tract Map 2003-0027 / Tract 2525 was approved by the City Council on September 23, 2003. The subdivision includes a total of 278 residential units comprised of 28 small lot single-family, 94 standard lot single- family, 21 estate lot single-family, and 135 multi-family residential units with 54.4 acres of landscaped and natural oak woodlands open space and nature trails on the overall 120-acre site. The applicant has decided to phase the map. Phase I has previously recorded. This final map is for Phase II. The "Subdivision Annexation and Assessment and Parcel Tax Authorization Deferral Agreement" allows the project to continue development while the City works on the establishment of the Assessment District. When the Assessment District is established, staff will bring a resolution to Council for the acceptance of the various offers of dedication. 49 ITEM NUMBER: A-11 DATE: 05/24/05 Pursuant to California Government Code Section 66440 the approving legislative body (City Council) cannot deny a final map that is consistent with an approved tentative map. The legislative body is also required to accept, accept subject to improvement, or reject on behalf of the public, any real property offered for dedication for public use in conformity with the terms of the offer of dedication. Staff recommends rejecting the offer of dedication for public right-of-way and public utility easements without prejudice to future acceptance. Staff has determined that the Final Tract Map is consistent with approved Vesting Tentative Tract Map. FISCAL IMPACT: None ATTACHMENTS: Exhibit A: Final Map 2004-0097 (Tract 2525-2) 50 ITEM NUMBER: A- 11 DATE: 05/24/05 Exhibit A Final Map 2004-0097(Tract 2525-2) Halcon Road R.W.Hertel and Sons e a 9 R 3b;a nV, W � - oIL it g l // iL*•L�r` kabs, i ` csr . dew 1 a gr k kpkp EYR �dy �a !R eC R a �ysy4a nub e Sg &' Raacc `� o oe.effi!3 G 51 ITEM NUMBER: B—1 (a)(d) DATE: 05/24/05 19i8 p 1979 Atascadero City Council Staff Report - Administrative Services Department Apple Valley Assessment Districts RECOMMENDATIONS: Council: 1. Conduct the Public Hearing for the Apple Valley Assessment Districts, and direct the City Clerk to collect and count the ballots. (Council to recess until ballots are counted.) 2. Direct City Clerk to announce the results of the election. 3. Adopt Draft Resolution A declaring the results of the property owner protest ballot proceeding for Street and Storm Drain Maintenance District No. 01 (Apple Valley) and approving certain related actions; and, 4. Adopt Draft Resolution B amending and/or approving the Final Engineer's Report regarding the formation of Street and Storm Drain Maintenance District No. 01 (Apple Valley), and the levy and collection of annual assessments related thereto commencing in fiscal year 2005/2006; and, 5. Adopt Draft Resolution C confirming the formation of Street and Storm Drain Maintenance District No. 01 (Apple Valley) and ordering the levy and collection of assessments for fiscal year 2005/2006; and, 6. Adopt Draft Resolution D 'declaring the results of the property owner protest ballot proceeding for Landscaping and Lighting District No. 01 (Apple Valley) and approving certain related actions; and, 7. Adopt Draft Resolution E amending and/or approving the Final Engineer's Report regarding the formation of Landscaping and Lighting District No. 01 (Apple Valley); and the levy and collection of annual assessments related thereto commencing in fiscal year 2005/2006; and, 8. Adopt Draft Resolution F confirming the formation of Landscaping and Lighting District No. 01 (Apple Valley) and ordering the levy and collection of assessments for fiscal year 2005/2006. 52 ITEM NUMBER: B-1 (a)(d) DATE: 05/24/05 REPORT-IN-BRIEF: On April 12, 2005 the Council adopted resolutions declaring its intention and initiating proceedings to form a Landscape and Lighting District and a Benefit Assessment District for the area generally known as the Colony at Apple Valley. In order to form the districts, Council must hold a public hearing, call for an election, have the clerk report the results of the election and if the ballot measures pass, adopt three resolutions for each district. History On Augustust 12 2003 Council approved the Colony at Apple Valley planned development and tract map. As part of that map, the residential development was conditioned as follows: "The emergency services, road maintenance, park maintenance and landscape maintenance costs of the project shall be 100% funded (park maintenance 50% funded) by the project in perpetuity. The service and maintenance cost may be funded through a benefit assessment district or other mechanism established by the developer subject to City approval. The funding mechanism shall be approved by the City Attorney, City Engineer and Administrative Services Director prior to acceptance of any final map. a. All streets, sidewalks, streetlights, street signs, roads, emergency access roads, emergency access gates within the project. b. All Atascadero Police Department service costs to the project. c. All Atascadero Fire Department service costs to the project. d. All common landscape areas, medians, parkways, street trees, walkways, open space areas and drainage basins and similar features. e. The project shall be responsible for 50% of the maintenance cost of the park." Apple Valley developers are meeting this condition (with the exception of the.public safety component) through the formation special districts. (The public safety component of this condition will be addressed through the formation of a community facilities district, which will be part of a separate process from the maintenance districts addressed here.) The formation of the districts will allow the City to levy specific taxes upon each of the properties within the District (Apple Valley). Process Current assessment laws require the formation of two separate districts for maintaining the improvements specified under the condition for development cited above. The first is a Street and Storm Drain Benefit Assessment District, which will provide funding and future routine maintenance of the streets, storm drains, landscaping, lighting, sidewalks and park facilities in this subdivision. The second is a Landscape and Lighting District, which will provide funding and maintenance of street trees, open space, park area, medians, walkways, paths and other landscape and lighting improvements within the subdivision. Current law does not allow assessments for the long-term replacement of the streets and storm drains, therefore amounts will not be collected for this purpose. Because long-term street maintenance is a condition of this project, at the time a major 53 ITEM NUMBER: B—1 (a)(d) DATE: 05/24/05 street replacement/rehabilitation becomes necessary, the burden of this cost will be born by the residents of the District. The California Constitution Articles XIIIC and XIIID (Proposition 218), require that a notice of the proposed assessment and ballot be mailed to the recorded owner of each parcel on which an assessment is imposed not less than 45 days prior to the public hearing. The Developer is the sole owner of the property, and has submitted a signed petition waiving his rights to the 45-day notice period. Tonight, at the conclusion of the public hearing, all returned ballots will be opened and tabulated. If the property owner approves the proposed assessment, the City Council will then adopt the following necessary resolutions to form the Districts and levy the first annual assessments. There are three resolutions for each district (a total of 6 resolutions in all) that must be passed, in order to complete formation of the assessment districts. The first resolutions (Draft Resolutions A & D) declare the results the property owner protest ballot. The second resolutions (Draft Resolutions B & E) amend and/or approve the Final Engineer's Report. Assessment district law requires that the engineer's report calculate how much benefit is derived by each unit from the improvements and how much general benefit there is to the entire City from the improvements. In the case of Apple Valley, the report has determined that all of the improvements (including the neighborhood park) provide 100% benefit to the residents of Apple Valley and that there is no general benefit to the remainder of the City. In most cases, this would mean that the full cost of maintenance of the improvements would fall to the residents of the proposed district. Because Apple Valley has a prior agreement with the City Council, the City will be contributing 1h of the park maintenance cost to the District. Based on the Engineers Report, each unit will be annually assessed $1087.76 for Landscape and Lighting Improvements and $497.76 for Streets and Storm Drain Maintenance Costs. As the cost of maintenance of the improvements goes up over time, the assessments can be increased, but only by the greatest of 3% annually or the annual CPI. Conversely, if the cost to maintain the improvements is lower than expected, Council can set future annual assessments at an amount less than maximum. The last resolutions tonight (Draft Resolutions C & F) confirm the formation of the districts and order the levy and collection of the assessments for fiscal year 2005/2006. FISCAL IMPACT: Annual assessments for 2005/2006 will total $34,843 for road/drainage system maintenance and $76,143 for landscape and lighting maintenance. These amounts will be assessed to the owner(s) of parcels in Apple Valley. There is no fiscal impact to general residents within the City. 54 ITEM NUMBER: B—1 (a)(d) DATE: 05/24/05 ALTERNATIVES: Require the developer to establish a homeowners association for the maintenance of the improvements. ATTACHMENTS: i 1. Draft Resolution A - declaring the results the property owner protest ballot proceeding for Street and Storm Drain Maintenance District No. 01 (Apple Valley) and approving certain related actions. 2. Draft Resolution B amending and/or approving the Final Engineer's Report regarding the formation of Street and Storm Drain Maintenance District No. 01 (Apple Valley), 'and the levy and collection of annual assessments related thereto, commencing in fiscal year 2005/2006 3. Draft Resolution C - confirming the formation of Street and Storm Drain Maintenance District No. 01 (Apple Valley) and ordering the levy and collection of assessments for fiscal year 2005/2006. 4. Engineer's Report- for the formation of Street and Storm Drain Benefit Assessment District No. 01 —Apple Valley 5. Draft Resolution D - declaring the results the property owner protest ballot proceeding for Landscaping and Lighting District No. 01 (Apple Valley) and approving certain related actions. 6. Draft Resolution E - amending and/or approving the Final Engineer's Report regarding the formation of Landscaping and Lighting District No. 01 (Apple Valley); and the levy and collection of annual assessments related thereto commencing in fiscal year 2005/2006. 7. Draft Resolution F- confirming the formation of Landscaping and Lighting District No. 01 (Apple Valley) and ordering the levy and collection of assessments for fiscal year 2005/2006. - 8. Engineer's Report- for the formation of Landscaping and Lighting District No. 01 —Apple Valley 55 DRAFT RESOLUTION A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ATASCADERO, CALIFORNIA, DECLARING THE RESULTS OF THE PROPERTY OWNER PROTEST BALLOT PROCEEDING FOR STREET AND STORM DRAIN MAINTENANCE DISTRICT NO. 01 (APPLE VALLEY) AND APPROVING CERTAIN RELATED ACTIONS WHEREAS, the City Council of the City of Atascadero, California(hereafter referred to as "City Council") called and duly held a property owner protest proceeding for Street and Storm Drain Maintenance District No.01 (Apple Valley) (hereafter referred to as "District')pursuant to the provisions of the Benefit Assessment Act of 1982, Chapter 6.4 of the California Government Code, beginning with Section 54703 (hereafter referred to as the "Act') and the California Constitution Articles XIIIC and XlED, for the purpose of presenting to the qualified property owners within the District the annual levy of assessments for the costs and expenses related to the ongoing operation, maintenance and servicing of local street right-of-way improvements and storm drain facilities installed in conjunction with the development of properties within the residential subdivision known as Apple Valley Tract 2495; and, WHEREAS, the landowners of record within the District as of the close of the Public Hearing held on May 24, 2005 did cast their ballots, weighted by the proportional financial obligation of each ballot,the results of which are illustrated below: Yes: $ No: $ NOW, THEREFORE,BE IT RESOLVED,by the City Council of the City of Atascadero SECTION 1. The above recitals are true and correct. SECTION 2. The results of the tabulation of the valid property owner protest ballots returned by the property owners of record within said District, prior to the conclusion of the Public Hearing and property owner protest proceeding held for the District on May 24, 2005, is hereby confirmed and made public record. 56 Draft Resolution A Page Two SECTION 3. The tabulation of the valid property owner protest ballots returned by the property owners within said District indicates that majority protest of the assessment does not exist, and the City Council is authorized to take the necessary steps to levy the assessments as approved. SECTION 4. The City Clerk is hereby directed to enter this Resolution on the minutes of the City Council, which shall constitute the official declaration of the result of such property owner protest proceeding. SECTION 5. This Resolution shall become effective immediately upon its adoption. SECTION 6. The City Clerk shall certify the adoption of this Resolution. On motion by Council Member and seconded by Council Member ,the foregoing Resolution is hereby adopted in its entirety on the following roll call vote: AYES: NOES: ABSENT: ADOPTED: CITY OF ATASCADERO By: Wendy Scalise,Mayor Attest: Marcia McClure Torgerson, C.M.C.,City Clerk APPROVED AS TO FORM: Patrick L. Enright, City Attorney 57 DRAFT RESOLUTION B RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ATASCADERO, CALIFORNIA, AMENDING AND/OR APPROVING THE ENGINEER'S REPORT REGARDING THE FORMATION OF STREET AND STORM DRAIN MAINTENANCE DISTRICT NO. 01 (APPLE VALLEY), AND THE LEVY AND COLLECTION OF ANNUAL ASSESSMENTS RELATED THERETO COMMENCING IN FISCAL YEAR 2005/2006 WHEREAS, The City Council of the City of Atascadero, California (hereafter referred to as "City Council"), pursuant to the provisions the Benefit Assessment Act of 1982, Chapter 6.4 of the California Government Code, beginning with Section 54703 (hereafter referred to as the "Act"), did by previous Resolution order the Engineer, MuniFinancial, to prepare and file a report in accordance with the Act in connection with the formation of Street and Storm Drain Maintenance District No. 01 (Apple Valley) (hereafter referred to as the "District") and the proposed levy and collection of assessments related thereto commencing with fiscal year 2005/2006, said fiscal year starting July 1, 2005 and ending June 30, 2006; and, WHEREAS The Engineer has prepared and filed with the City Clerk of the City of g Atascadero and the City Clerk has presented to the City Council such report entitled "Engineer's Report for the Formation of Street and Storm Drain Maintenance District No. 01 (Apple Valley), fiscal year 2005/2006" (hereafter referred to as "Engineer's Report") in accordance with the Act; and, WHEREAS,The City Council has carefully examined and reviewed the Engineer's Report as presented, and is satisfied with each and all of the items and documents as set forth therein, and finds that the levy of assessments has been spread in accordance with the special benefits received from the improvements, operation, maintenance and services to be performed, as set forth in said Engineer's Report. NOW, THEREFORE,BE IT RESOLVED, by the City Council of the City of Atascadero SECTION 1. The above recitals are all true and correct. 58 Draft Resolution B Page Two SECTION 2. The Engineer's Report as presented,consists of the following: a. Plans and specifications that describe the District and Improvements. b. Method of Apportionment that outlines the special benefit conferred on properties within the District from the improvements and the calculations used to establish each parcel's proportional special benefit assessment as well as a description of the assessment range formula that establishes the maximum assessment rate in subsequent fiscal years. c. The Budget that outlines the costs and expenses to service, and maintain the improvements including incidental expenses to operate the District. d. An Assessment Diagram that identifies the boundaries of the District. e. An Assessment Roll containing each of the Assessor Parcel Numbers that comprise the District and the proportional maximum assessment and first year's assessment commencing fiscal year 2005/2006. SECTION 3. The Engineer's Report as presented, is hereby approved (as submitted or amended by direction of this City Council), and is ordered to be filed in the Office of the City Clerk as a permanent record and to remain open to public inspection. SECTION 4. The City Clerk shall certify to the passage and adoption of this Resolution and the minutes of this meeting shall so reflect the adoption and approval of the Engineer's Report. 59 Draft Resolution B Page Three On motion by Council Member and seconded by Council Member ,the foregoing Resolution is hereby adopted in its entirety on the following roll call vote: AYES: NOES: ABSENT: ADOPTED: CITY OF ATASCADERO By: Wendy Scalise, Mayor ail Attest: Marcia McClure Torgerson, C.M.C., City Clerk APPROVED AS TO FORM: Patrick L. Enright, City Attorney 60 DRAFT RESOLUTION C RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ATASCADERO, CALIFORNIA CONFIRMING THE FORMATION OF STREET AND STORM DRAIN MAINTENANCE DISTRICT NO. 01 (APPLE VALLEY) AND ORDERING THE LEVY AND COLLECTION OF ASSESSMENTS FOR FISCAL YEAR 2005/2006 WHEREAS, The City Council of the City of Atascadero, California (hereafter referred to as City Council)has by previous Resolutions initiated proceedings and declared its intention to form Street and Storm Drain Maintenance District No. 01 (Apple Valley) (hereafter referred to as the "District") and to levy special benefit assessments against parcels of land within the said District commencing with fiscal year 2005/2006, said fiscal year commencing July 1, 2005 and ending June 30, 2006; pursuant to the provisions of the Benefit Assessment Act of 1982, Chapter 6.4 of the California Government Code, beginning with Section 54703 (hereafter referred to as the "Act") to pay the costs and expenses of operation, maintenance, repair and servicing of local street right-of- way improvements and storm drain facilities related thereto; and, WHEREAS, The Engineer selected by the City Council has prepared and filed with the City Clerk, and the City Clerk has presented to the City Council an Engineer's Report in connection with the proposed formation and levy of special benefit assessments upon eligible parcels of land within the District, and the City Council did by previous Resolution adopt and approve said Engineer's Report; and, WHEREAS The City Council desires to levy and collect assessments against parcels of land within the District for the fiscal year commencing July 1, 2005 and ending June 30, 2006, to pay the costs and expenses of operation, maintenance, repair and servicing of local street right-of- way improvements and storm drain facilities related thereto; and, WHEREAS, The City Council has conducted a property owner protest ballot proceeding for the District assessments proposed to be levied commencing fiscal year 2005/2006, and majority protest of the assessments described in the Engineer's Report did not exist pursuant to the provisions of the California State Constitution Article XIID�. 61 Draft Resolution C Page Two NOW, THEREFORE,BE IT RESOLVED,by the City Council of the City of Atascadero SECTION 1. Following notice duly given, the City Council has held a full and fair Public Hearing regarding its Resolution approving the Engineer's Report prepared in connection therewith; the levy and collection of assessments, and considered all oral and written statements, protests and communications made or filed by interested persons. The City Council has determined that the property owners in accordance with the requirements of the California State Constitution, Article XMD have approved the assessments so presented. SECTION 2. Based upon its review (and amendments, as applicable) of the Engineer's Report, a copy of which has been presented to the City Council and which has been filed with the City Clerk,the City Council hereby finds and determines that: a. The land within District will receive special benefit by the operation, maintenance and servicing of improvements to be provided by the District. b. The District includes all of the lands receiving such special benefit. c. The net amount to be assessed upon the lands within the District is in accordance and apportioned b a formula and method which fairly distributes PP Y Y the net amount among all eligible parcels in proportion to the special benefit to be received by each parcel from the improvements and services for the fiscal year commencing July 1, 2005 and ending June 30, 2006. y SECTION 3. The City Council hereby orders the proposed improvements to be made, which improvements are briefly described as the maintenance, operation, administration and servicing of the improvements that may include, but is not limited to local street right-of-way improvements and storm drain facilities within the District and all appurtenant facilities related thereto. SECTION 4. The maintenance, operation and servicing of improvements shall be performed pursuant to the Act and the County Auditor of San Luis Obispo County shall enter on the County Assessment Roll opposite each parcel of land the amount of levy, and such levies shall be collected at the same time and in the same manner as the County taxes are collected. After collection by the County, the net amount of the levy shall be paid to the City Treasurer. 62 Draft Resolution C Page Three SECTION 5. The City Treasurer shall deposit all money representing assessments collected by the County for the District to the credit of a fund for the Street and Storm Drain Maintenance District No. 01 (Apple Valley), and such money shall be expended only for the maintenance, operation and servicing of the improvements as described in the Engineers Report and generally described in Section 3 of this Resolution. SECTION 6. The adoption of this Resolution constitutes the formation of the District, the establishment of the maximum assessment rate described in the Engineer's Report and the levy of assessments for the fiscal year commencing July 1, 2005 and ending June 30, 2006. SECTION 7. The City Clerk is hereby authorized and directed to file the levy with the County Auditor upon adoption of this Resolution. On motion by Council Member and seconded by Council Member ,the foregoing Resolution is hereby adopted in its entirety on the following roll call vote: AYES: NOES: ABSENT: ADOPTED: CITY OF ATASCADERO By: Wendy Scalise,Mayor Attest: Marcia McClure Torgerson, C.M.C.,City Clerk APPROVED AS TO FORM: Patrick L. Enright, City Attorney 63 CITY OF ATASCADERO ENGINEER'S REPORT FOR THE FORMATION OF STREET AND STORM DRAIN MAINTENANCE DISTRICT NO. 01 (APPLE VALLEY) FISCAL YEAR 2005/2006 ATASCADERO STREET AND STORM DRAIN MAINTENANCE DISTRICT NO. 01 (APPLE VALLEY) Intent Meeting: April 12, 2005 " Public Hearing: May 24, 2005 own MuniFinancial Corporate Office Office Locations 27368 Via Industria Anaheim,CA Pensacola,FL Suite 110 Lancaster,CA Phoenix,AZ Temecula,CA 92590 Los Angeles Regional Office Sacramento,CA Tel: (909)587-3500 Oakland,CA Seattle,WA Tel: (800)755-MUNI(6864) Fax: (909)587-3510 www.muni.com Is 64 ENGINEER'S REPORT AFFIDAVIT Formation of the Atascadero Street and Storm Drain Maintenance District No. 01 (Apple Valley) And establishment of Annual Assessments for said District The District includes all parcels of land within the residential subdivision known as Apple Valley, Tract 2495 City of Atascadero, County of San Luis Obispo, State of California This Report and the enclosed budget, assessments, descriptions and diagrams outline the proposed formation of Street and Storm Drain Maintenance District No. 01 (Apple Valley) and includes each lot, parcel, and subdivision of land within said District, as the same existed at the time of the passage of the Resolution of Intention. Reference is hereby made to the San Luis Obispo County Assessor's maps for a detailed description of the lines and dimensions of parcels within the District. The undersigned respectfully submits the enclosed Report as directed by the City Council. Dated this day of ,2005. MuniFinancial Assessment Engineer On Behalf of the City of Atascadero By: Jim McGuire Senior Project Manager By: Richard Kopecky R. C.E. # 16742 65 TABLE OF CONTENTS INTRODUCTION...............................................................................................1 PART I — PLANS AND SPECIFICATIONS ......................................................5 A. Benefiting Properties within the District..........................................................5 B. Funding authorized by the 1982 Act..................................................................5 C. Description of Improvements and Services....................................................6 PART II — METHOD OF APPORTIONMENT...............................................10 A. General..........................................................................................................................10 B. Benefit Analysis.........................................................................................................10 C. Assessment Methodology......................................................................................11 D. Assessment Range Formula.................................................................................15 PART III — DISTRICT BUDGET .....................................................................18 PART IV — DISTRICT DIAGRAMS.................................................................19 PART V — ASSESSMENT ROLL.......................................................................21 66 Engineer's Report City of Atascadero Street and Storm Drain Maintenance District No. 01 (Apple Valley) INTRODUCTION Pursuant to the provisions of the Benefit Assessment Act of 1982, being Chapter 6.4 of the California Government Code, commencing with Section 54703 (hereafter referred to as the "1982 Act"), and in compliance with the substantive and procedural requirements of the California State Constitution Article XIIID (hereafter referred to as the "California Constitution"), the City Council of the City of Atascadero, County of San Luis Obispo, State of California (hereafter referred to as "City"),propose to form and levy special benefit assessments for the district designated as: Street and Storm Drain Maintenance District No. 01 (Apple Valley) (hereafter referred to as "District"), which includes all lots and parcels of land within the residential subdivision known as Apple Valley, Tract 2495 within the City limits of Atascadero. This Engineer's Report (hereafter referred to as "Report") has been prepared in connection with the formation of said District and the levy and collection of annual assessments related thereto commencing in fiscal year 2005/2006, as required pursuant to Article 4, Section 54716 of the 1982 Act. The City Council proposes to form the District, and levy and collect annual assessments on the County tax rolls to provide ongoing funding for the costs and expenses required to service and maintain the street and storm drain improvements and facilities associated with and resulting from the development of properties within the District. The improvements to be provided by the District and the assessments described herein are made pursuant to the 1982 Act and the substantive and procedural provisions of the California Constitution. This Report describes the District,the improvements,and the proposed assessments to be levied against properties in connection with the special benefits the properties will receive from the maintenance and servicing of the District improvements and facilities commencing in fiscal year 2005/2006. The formation of this District and the assessments described herein will provide a funding source (annual assessments) for the continued operation and maintenance of streets, storm drain system and appurtenant facilities installed in connection with the development of properties within the District. The improvements and assessments described in this Report are based on the planned development of properties within the District and represent an estimate of the direct expenditures, incidental expenses, and fund balances that will be necessary to maintain and service the streets and storm drain system that provides special benefits to properties within the District. The structure of the District (organization), the proposed improvements, the method of apportionment, and assessments described herein are based on current development plans and MuniFinancial Page 1 67 Engineer's Report City of Atascadero Street and Storm Drain Maintenance District No. 01 (Apple Valley) specifications for Tract 2495; and by reference these plans and specifications are made part of this Report. The word "parcel," for the purposes of this Report, refers to an individual property assigned its own Assessor's Parcel Number (APN) by the San Luis Obispo County Assessor's Office. The San Luis Obispo County Auditor/Controller uses Assessor's Parcel Numbers and specific Fund Numbers to identify properties to be assessed on the tax roll for the special benefit assessments. As part of this District formation, the City of Atascadero shall conduct a Property Owner Protest Ballot proceeding for the proposed levy of a new assessment pursuant to the provisions of the California Constitution, Article XIIID Section 4. In conjunction with this ballot proceeding, the City Council will conduct a noticed public hearing to consider public testimonies, comments and written protests regarding the formation of the District and levy of assessments. Upon conclusion of the public hearing,property owner protest ballots received will be opened and tabulated to determine whether majority protest exists (ballots shall be weighted based on assessment amounts),and by resolution the City Council will confirm the results of the ballot tabulation. If majority protest exists, proceedings for the levy of District assessments shall be abandoned. If tabulation of the ballots indicates that majority protest does not exist for the proposed assessments and the assessment range formula presented and described herein, the City Council may approve the Report (as submitted or amended), order the formation of the District, and approve the levy and collection of assessments. In such case, the assessments for fiscal year 2005/2006 shall be submitted to the San Luis Obispo County Auditor/Controller for inclusion on the property tax roll for each parcel. Each subsequent fiscal year, a Report shall be prepared and presented to the City Council describing any changes to the improvements, proposed services, the annual budget or assessments for that fiscal year and the City Council shall hold a noticed public hearing regarding these matters prior to approving and ordering the proposed levy of assessments. If the proposed assessments for the District exceed the maximum assessment described herein (as approved by the property owners), the new or increased assessment must be confirmed through another property owner protest ballot proceeding before such an assessment may be imposed. It should be noted that an increased assessment to an individual property resulting from changes in development or land use does not constitute an increased assessment. This Report consists of five (5) parts: Part I Plans and Specifications: A description of the District boundaries and the proposed improvements associated with the District. The District is being formed with a single benefit zone encompassing all properties within the territory identified as the residential subdivision of Apple Valley,Tract 2495. MuniFinancial Page 2 68 Engineer's Report City of Atascadero Street and Storm Drain Maintenance District No. 01 (Apple Valley) Part II The Method of Apportionment: A discussion of benefits the improvements and services provide to properties within the District and the method of calculating each property's proportional special benefit and annual assessment. This section also identifies and outlines an Assessment Range Formula that provides for an annual adjustment to the maximum assessment rate that establishes limits on future assessments, but also provides for reasonable cost adjustments due to inflation without the added expense of additional property owner protest ballot proceedings. Part III The District Budget: An estimate of the annual costs to operate, maintain and service the street and storm drain improvements and facilities installed and constructed as part of the development of properties within the District. This budget includes an estimate of anticipated direct maintenance costs and incidental expenses including, but not limited to administration expenses and the collection of appropriate fund balances to establish an initial maximum assessment to be approved by the property owners of record. The special benefit assessments are based on the overall operation costs minus any costs that are considered general benefit. The proposed assessments for the first fiscal year (2005/2006), and each subsequent year shall be based on the estimated net annual cost of operating, maintaining and servicing the District improvements for that fiscal year as well as funds to be collected in installments to perform maintenance activities that cannot be reasonably collected in a single fiscal year's assessments. The proposed maximum assessment (Rate per Equivalent Benefit Unit) identified in the budget of this Report establishes the initial maximum assessment for the District in fiscal year 2005/2006 and shall be adjusted annually by the Assessment Range Formula described in the method of apportionment. Part IV District Diagram: A Diagram showing the exterior boundaries of the District is provided in this Report and includes all parcels that will receive special benefits from the improvements. Parcel identification, the lines and dimensions of each lot, parcel and subdivision of land within the District, are inclusive of all parcels as shown on the San Luis Obispo County Assessor's Parcel Maps as they existed at the time of the passage of the Resolution of Intention, and shall include all subsequent subdivisions, lot line adjustments or parcel changes therein. Reference is hereby made to the San Luis Obispo County Assessor's maps for a detailed description of the lines and dimensions of each lot and parcel of land within the District. Part V Assessment Roll: A listing of the proposed assessment amount to be presented to the property owners of record in the protest ballot proceedings required pursuant to the provisions of the California Constitution. The proposed assessment amount for each parcel is based on the parcel's proportional special benefit as outlined in the method of apportionment and the proposed initial maximum assessment rate. MuniFinancial Page 3 69 Engineer's Report City of Atascadero Street and Storm Drain Maintenance District No. 01 (Apple Valley) MuniFinancial Page 4 70 Engineer's Report City of Atascadero Street and Storm Drain Maintenance District No. 01 (Apple Valley) PART I - PLANS AND SPECIFICATIONS A. Benefiting Properties within the District The territory within the District consists of all lots, parcels and subdivisions of land within the proposed residential subdivision known as the Apple Valley, Tract 2495, which encompasses an area of land totaling approximately twenty-eight acres (28.35 acres). This residential subdivision is planned to include seventy (70) single-family residential homes at build-out. The planned subdivision is situated in the northern portion of the City of Atascadero just southwest of Highway 101 and is generally located: • South of Del Rio Road; • North of Conejo Road; • West of Ramona Road;and, • East of Graves Creek The parcels within the District at the time this Report was prepared are identified by the San Luis Obispo County Assessor's Office as parcel numbers: 049-191-002; 049-191- 016;049-191-027;049-191-028;and 049-191-030. B. Funding authorized by the 1982 Act As generally defined by the Benefit Assessment Act of 1982 and applicable to this District, the City may impose a benefit assessment to finance the maintenance and operation costs of the following services: 1) Drainage and Flood Control ~ 2) Streets and Roads; In addition to imposing a benefit assessment for the annual maintenance and operation of the District improvements, the City may also authorize an assessment or utilize existing assessment revenues to finance the installation, construction or replacement of drainage and flood control facilities as well as the street and road improvements (with some limitations). While such activities are permitted under the 1982 Act, the budget and assessments for this District only provide for normal maintenance and operation of the improvements. Since most major rehabilitation/construction projects result from unforeseen damages,the extent and cost of such projects are not easily predicted and to accumulate funds as part of the normal annual assessments would not be reasonable. If such funding becomes necessary, the City may present a new or increased assessment to the property owners to support the projects. Munihnancial Page 5 71 Engineer's Report City of Atascadero Street and Storm Drain Maintenance District No. 01 (Apple Valley) C. Description of Improvements and Services P P The purpose of this District is to fund the activities necessary to maintain and service the local streets and the drainage and flood control systems constructed and installed in connection with development of properties within the residential subdivision known as Apple Valley, Tract 2495 pursuant to approved development plans and agreements. The improvements may consist of all or a portion of the public streets, drainage and flood control facilities associated with Tract 2495 and the maintenance of these improvements may include but are not limited to all materials, equipment, labor, and incidental expenses deemed necessary to keep these improvements in satisfactory condition. The maintenance of the improvements and related activities shall be funded entirely or partially through the District assessments.The District improvements and services are generally described as: • Street maintenance that may include but is not limited to the repair and servicing of street surfaces, curbs, gutters, bridges, driveway approaches, sidewalks, barricades, delineation, signage or other facilities within the public street right-of-ways installed in connection with the development of properties in Tract 2495 and that have been dedicated to the City; • Storm drain and flood control maintenance that may include but is not limited to inspection, repair and servicing of drainage basins, inlets, catch basins, manholes, outlets, drywells, pumps, filters and storm drain pipes installed in connection with the development of properties of Tract 2495 as well as any off-site improvements and facilities directly associated with the aforementioned infrastructure that is deemed necessary to service or protect the properties including waste water treatment; • All appurtenant, equipment, materials and service contracts related to the aforementioned improvements and facilities; • Specifically excluded are those improvements or facilities: located on private property or common areas; that may be provided or maintained by an agency other than the City;that may be provide by another assessment or tax levied by the City;or that may be provided and maintained by a Homeowner's Association or similar entity. Detailed maps and descriptions of the location and extent of the specific improvements to be maintained by the District are on file in the Office of Public Works and by reference are made part of this Report. Those portions of the District improvements that may be identified as general benefit or will be funded in whole or in part by other revenue sources as part of the approved development agreements, will not be included as part of the District assessments. The net annual cost to provide and maintain the improvements determined to be of special benefit shall be allocated to each property in proportion to the special benefits received. MuniFinancial Page 6 72 Engineer's Report City of Atascadero Street and Storm Drain Maintenance District No. 01 (Apple Valley) Street Maintenance The street maintenance program may include, but is not limited to: the repair of potholes, cracks or other failures in the asphalt surface; repair or replacement of curbs, gutters, driveway approaches and sidewalks as required as part of maintaining the streets; repair or installation of street signs, barricades, fencing or other delineation; mechanized sweeping and cleaning of the streets and gutters; slurry sealing, overlays and re-striping of the street surfaces. The specific activities and timing of various street and road maintenance services shall be determined by the City's Public Works Department as necessary to extend the life of the streets or to improve traffic circulation and safety as available funding permits. Specifically the street improvements for this District are identified as: • Approximately 106,460 square feet of asphalt street surface located on the perimeter of the development (south half of Del Rio Road); and the various interior streets identified as Via Colonia Court, San Ramon Road, Via Huerto Court, Avenida Manzana,and San Ramon Road. • Approximately 5,320 linear feet of curb and gutter along Del Rio Road, Via Colonia Court, San Ramon Road, Via Huerto Court, Avenida Manzana, San Ramon Road and Conejo Road; • Approximately 3,545 square feet of decorative street pavers and 1,254 linear feet of curb and gutter in and around the two median islands on San Ramon Road (entryways to the development at Del Rio Road and Conejo Road); • Approximately 70 driveway approaches, 25,394 square feet of sidewalks and various street signs within the District; • Specifically not included as part of the street maintenance program are the costs associated with major replacements or reconstruction. Although the District assessments will provide funding for regular maintenance and servicing of the improvements that will extend the useful life of the street improvements, the assessments are not intended to fund major replacements or reconstruction of the street surfaces or adjacent improvements such as. curbs, gutters or driveway approaches. The costs of extensive replacement or reconstruction activities such as grinding and resurfacing of the asphalt; and replacement of curbs, gutters driveway approaches and sidewalks is significantly more than the amount that can reasonably be collected annually under the provisions of the 1982. When such repairs or activities are deemed necessary, the City will consider various financing options including new or increased assessments for property owner approval. The Public Works Department shall authorize all operational activities and maintenance of the public street and right-of-way improvements, facilities and services that may include,but are not limited to: • Regular street sweeping services necessary to control dirt and debris on street surfaces and gutters; • Annual inspection of street surface and repair of potholes and surface cracks as needed; MuniFinancial Page 7 73 Engineer's Report City of Atascadero Street and Storm Drain Maintenance District No. 01 (Apple Valley) • Periodic slurry or overly of street surfaces and driveway approaches (typically one or the other once every five years); • Periodic re-striping of traffic lanes, bike lanes, street parking areas, crosswalks and intersections (typically in conjunction with slurry or overly activities); • Graffiti abatement of public improvements within the street right-of-ways that are maintained by the District including but not limited to sandblasting, repainting and repair of fences,walls,barricades, sidewalks and signage as needed; • Annual inspection and periodic repair or replacement of decorative street-pavers as needed; • Annual inspection and minor repairs of curbs, gutters, driveway approaches and sidewalks including partial segment replacements as needed to ensure pedestrian and vehicle safety or the integrity of the street; • Annual inspection and periodic repair or rehabilitation of street signs and traffic control devices; • Annual inspection and repair of barricades, street-fencing, delineation or retaining walls within the street right-of-ways as needed; A portion of the services described above are not performed on an annual basis but rather on a periodic basis such as slurry sealing or overlaying the asphalt streets and the funds necessary for these activities are collected in installments as part of the annual assessments. The monies collected each year for these services will be accumulated in a special fund of the District (Reserve Fund or Capital Improvement Fund). The monies accumulated for these activities shall be spent when sufficient funds have been accumulated to perform the services deemed necessary by the City (approximately every five years). This process of accumulating funds (installments) shall continue until such time the District is dissolved; or the City determines that such funding procedures require modification. Changes in the process of accumulating funds that would result in an increase to the annual assessment rate must be presented to the property owners for approval prior to imposing such an increase Storm Drain and Flood Control Maintenance The storm drain and flood control system associated with the District may include but is not limited to: drainage basins and bio-filters; channelways; storm drain inlets, catch basins, manholes, outlets; drywells, pumps, filters and pipes. The storm drain system to be maintained primarily involves on-site facilities (within the District boundaries) but may also include off-site improvements such as water treatment equipment, facilities or services mandated or required by Federal, State or County regulations for water pollution control. The annual assessments for this District are intended to support a storm drain and flood control maintenance program that will adequately regulate and control storm water runoff resulting from the development of properties within the District.This maintenance program may include but is not limited to: inspection and documentation of the system; cleaning, servicing or repair of the facilities and equipment; and the partial replacement or MuniFinancial Page 8 74 Engineer's Report City of Atascadero Street and Storm Drain Maintenance District No. 01 (Apple Valley) rehabilitation of equipment and facilities.The storm drain and flood control system includes but is not limited to: • Approximately 30,050 square feet of drainage basin area; • Twenty-eight(28) inlets,outlets and manholes located throughout Tract 2495; • Approximately 2,100 linear feet of storm drain pipe ranging from 18 inches to 42 inches in diameter; The Public Works Department shall authorize and schedule all operational activities and maintenance of the storm drain and storm water pollution treatment infrastructure, facilities and services that may include,but are not limited to: • Cleaning of storm drain inlets, catch basins,manholes and pipes as needed; • Stencil maintenance and documentation of facilities as required by Federal, State or County regulations; • Cleaning and landscape maintenance of the drainage basins, bio-filter areas or channelways as needed; • Debris removal and pest control in and around the storm drain facilities as needed; • Minor repairs and maintenance of the storm drain inlets, catch basins and outlets as needed; • Street sweeping services necessary to control debris and water flow for the storm drain system;and, • All operational costs related to NPDES compliance requirements. A portion of the services described above are not performed on an annual basis but rather on a periodic basis such as minor repairs to the storm drain inlets, catch basins and outlets, and the funds necessary for these activities are collected in installments as part of the annual assessments. The monies collected each year for these services will be accumulated in a special fund of the District (Reserve Fund or Capital Improvement Fund). The monies accumulated for these activities shall be spent as needed to perform the services deemed necessary by the City. This process of accumulating funds (installments) shall continue until such time the District is dissolved; or the City determines that such funding procedures require modification. Changes in the process of accumulating funds that would result in an increase to the annual assessment rate must be presented to the property owners for approval prior to imposing such an increase MuniFinancial Page 9 75 Engineer's Report City of Atascadero Street and Storm Drain Maintenance District No.01 (Apple Valley) PART II - METHOD OF APPORTIONMENT A. General The 1982 Act permits the establishment of assessment districts by agencies for the purpose of providing for the maintenance, operation and servicing of drainage and flood control improvements as well as streets, roads and appurtenant facilities. The 1982 Act further requires that the cost of these improvements be levied according to benefit rather than assessed value: "The amount of the assessment imposed on any parcel of property shall be related to the benefit to the parcel which will be derived from the provision of the service . Furthermore: "The annual aggregate amount of the assessment shall not exceed the estimated annual cost of providing the service, except that the legislative body may, by resolution, determine that the estimated cost of work authorized ... is greater than can be conveniently raised from a single annual assessment and order that the estimated cost shall be raised by an assessment levied and collected in installments.... The revenue derived from the assessment shall not be used to pay the cost of any service other than the service for which the assessment was levied. The method of apportionment described in this Report for allocation of special benefit assessments utilizes commonly accepted engineering practices in compliance with the provisions of the 1982 Act and the California Constitution. The formulas used for calculating assessments reflects the composition of parcels within the District and the improvements and services provided, to fairly apportion the costs based on .the special benefits to each parcel. B. Benefit Analysis Each of the proposed improvements and services, and the associated costs and assessments have been carefully reviewed, identified and allocated based on special benefit pursuant to the provisions of the 1982 Act and the California. Constitution. The street and storm drain improvements associated with this District were necessary and essential requirements for the orderly development of the properties within the District to their full potential, consistent with the development plans and applicable portions of the City General Plan. As such the ongoing operation, servicing and maintenance of those improvements would otherwise be the direct financial obligation of each individual property owner. Since each parcel to be assessed within the District could not have been developed in the absence of these improvements and facilities, each parcel has a direct investment in the proper maintenance MuniFinancial Page 10 76 Engineer's Report City of Atascadero Street and Storm Drain Maintenance District No.01 (Apple Valley) of the improvements that is over and above any general benefits that may be conferred by such improvements and services. Clearly the ongoing maintenance and servicing of the District improvements is an integral part of the appearance, use and preservation of the properties within the District and such services to be funded by annual assessments confer a particular and distinct special benefit to those parcels. The proper maintenance of streets and appurtenant facilities allows individual parcels to be used to their fullest extent by ensuring the safe and efficient movement of people and goods to and from the benefiting properties Likewise, the maintenance and servicing of the storm drain system ensures proper water flow and control of excess water during periods of rain,which is essential to preservation and protection of private property. Together the maintenance and servicing of the streets and storm drain system contributes to a specific enhancement of each of the parcels within the District and the absence of adequate maintenance and servicing of the District improvements could eventually have a negative impact on properties within the District. Although the improvements may include public streets and storm drain facilities that connect to similar facilities outside the District boundaries, it is clear that the construction and installation of these improvements were only necessary for the development of properties within the District. As such, these improvements were not required nor necessarily desired by any properties or developments outside the District boundary and any public access or use of the improvements by others is incidental. Therefore, it has been determined that the ongoing maintenance, servicing and operation of the District improvements provide no measurable general benefit to properties outside the District onto 0 the public at large, but clearly provide distinct and special benefits to properties within the District.Any improvement or portion thereof(particularly off-site storm drain facilities) that may be considered general benefit shall be funded by other revenue sources and not included as part of the special benefit assessments allocated to properties within this District. However, the costs associated with installation or improvement of any off-site facilities that benefit the parcels within this District as well as other properties (shared benefit) may be allocated to the parcels within the District based on their proportional special benefit from such improvements. C. Assessment Methodology All costs associated with the improvements and services shall be fairly distributed among the parcels based upon the special benefit received by each parcel. Additionally, in compliance with the California Constitution Article XIIID Section 4, each parcel's assessment may not exceed the reasonable cost of the proportional special benefit conferred to that parcel. The benefit formula used to determine the assessment obligation is therefore based upon both the improvements that benefit the parcels within the District as well as the proposed land use of each property as compared to other parcels that benefit from those specific improvements. The method of apportionment established for this District and described herein,reflects the proportional special benefit each property receives from the improvements and services MuniFinancial Page 11 77 Engineer's Report City of Atascadero Street and Storm Drain Maintenance District No. 01 (Apple Valley) based on the actual or proposed land use of that parcel as compared to other properties within the District based on similarities and differences in parcel land use. Upon review of the improvements and the proposed development of properties within the District it has been determined that all residential properties receive similar special benefits from each of the improvements and services to be funded by annual assessments and a single zone of benefit is appropriate for the allocation of the assessments and proportional special benefit. Equivalent Benefit Units: To assess benefits equitably it is necessary to relate each property's proportional special benefits to the special benefits of all other properties within the District. The method of apportionment established for most districts formed under the 1982 Benefit Act utilizes a weighted method of apportionment known as an Equivalent Benefit Unit (EBU) methodology that uses the single-family home site as the basic unit of assessment. A single- family home site equals one Equivalent Benefit Unit (EBU) and all other land uses are converted to a weighted EBU based on an assessment formula that equates the property's specific development status, type of development (land use), and size of the property, as compared to a single-family home site. Although the Equivalent Benefit Unit method of apportioning special benefit is most commonly used and applied to districts that have a wide range of land use classifications (residential and non-residential use), this District is comprised of only residential properties and the following apportionment analysis of special benefit addresses only residential land uses. Not all land use types described in the following are necessarily applicable to the development of properties within this District, but are presented for comparison purposes to support the proportional special benefit applied to those land use types within the District. EBU Application by Land Use: Single-family Residential —This land use is defined as a fully subdivided residential home site with or without a structure. This land use is assessed 1.00 EBU per lot or parcel. This is the base value that all other properties are compared and weighted against (i.e. Equivalent Benefit Unit EBU). Multi-family Residential — This land use is defined as a fully subdivided residential parcel that has more than one residential unit developed on the property. (This land use typically includes apartments, duplexes, triplex etc. , but does not generally include condominiums, town-homes or mobilehome parks). Based on average population densities and size of the structure as compared to a typical single-family residential unit, multi-family residential parcels shall be proportionately assessed for the parcel's total number of residential units utilizing a sliding benefit scale. Although multi-family properties typically receive similar benefits to that of a single-family residential, it would not be reasonable to conclude that on a per unit basis, the benefits are equal. Studies MuniFinancial Page 12 78 Engineer's Report City of Atascadero Street and Storm Drain Maintenance District No. 01 (Apple Valley) have consistently shown that the average multi-fanlyunit impacts infrastructure approximately 75% as much as a single-family residence (Sample Sources: Institute of Transportation Engineers Informational Report Trip Generation, Fifth Edition; Metcalf and Eddy, Wastewater Engineering Treatment, Disposal,Reuse, Third Edition). These various studies indicate that most public improvements and infrastructure are utilized and impacted at reduced levels by multi-family residential units and a similar reduction in proportional benefit is appropriate. Furthermore,it is also reasonable to conclude that as the density (number of units) increases, the proportional benefit per unit tends to decline because the unit size and people per unit usually decreases. Based on these considerations and the improvements provided by this District, an appropriate allocation of special benefit for multi-family residential properties as compared to a single-family residential is best represented by the following special benefit assignment: 0.75 EBU per unit for the first 50 units;0.50 EBU per unit for units 51 through 100;and 0.25 EBU per unit for all remaining units. Condominium/Town-home Units — Condominiums and town-homes tend to share attributes of both a single-family residential and multi-family residential properties and for this reason are identified as a separate land use classification. Like most single- family residential properties, these properties are not usually considered rental property and generally, the County assigns each unit a separate APN or assessment number. However, condominiums and town-homes often have similarities to multi-family residential properties in that they are generally zoned medium to high density and in some cases may involve multiple units on a single APN. In consideration of these factors it has been determined that an appropriate allocation of special benefit for condominiums, town-homes and similar residential properties is best represented by an assignment of 0.75 EBU per unit regardless of whether each unit is assigned an individual APN or there are multiple units assigned to an APN. (There is no adjustment for parcels with more than five units). Planned-Residential Development — This land use is defined as any property for which a tentative or.final tract map has been filed and approved (a specific number of residential lots and units has been identified) and the property is expected to be subdivided within the fiscal year or is part of the overall improvement and development plan for the District. This land use classification often times involves more than a single parcel (e.g. the approved tract map encompasses more than a single APN). Each parcel that is part of the approved tract map shall be assessed proportionately for the proposed or estimated residential type and units to be developed on that parcel as part of the approved tract map. Accordingly, each parcel is assigned an appropriate number of benefit units that reflects the development of that property at build-out. (The EBU assigned to each parcel shall represent the combination of single-family, condominium, multi-family units to be developed). Vacant Residential — This land use is defined as property currently zoned for residential development, but a tentative or final tract map for the property has not yet been approved. Based upon the opinions of professional appraisers who appraise market property values for real estate in California, the land value portion of a property typically MuniFinancial Page 13 79 Engineer's Report City of Atascadero Street and Storm Drain Maintenance District No. 01 (Apple Valley) ranges from 20 to 30 percent of the total value of a developed residential property (the g average is about 25 percent). Although the assessed value of an individual property is not a direct reflection of the property's special benefit, this general correlation between land value and structure value does provide a reasonable basis for apportioning special benefit for vacant residential properties. Utilizing this twenty-five percent (25%) apportionment and the number of single-family residential units typically developed per acre of land (an average of 4 residential units per acre) and Equivalent Benefit Unit of 1.0 EBU per acre (4units per acre x 25%) is derived and presents an appropriate apportionment of special benefit for vacant residential properties. Recognizing that the full and timely utilization of vacant property is reduced as the size of the property increases, it has been determined that the maximum EBU assigned to a vacant residential parcel shall not exceed 25.0 EBU (parcels in excess of 25 acres are assigned 25.0 EBU). Parcels less than one acre shall be assigned a minimum of 1.0 EBU (similar to a vacant lot within a residential tract). Exempt Parcels — This land use identifies properties that are not assessed and are assigned 0.00 EBU. This land use classification may include but is not limited to: • Lots or parcels identified as public streets and other roadways (typically not assigned an APN by the County); • Dedicated public easements including open space areas, utility rights-of-way, greenbelts, parkways, parks or other publicly owned properties that are part of the District improvements or may provide other benefits to private properties within the District.; • Private properties that cannot be developed independently from an adjacent property, such as common areas, sliver parcels or bifurcated lots or properties with very restrictive development use; These types of parcels are considered to receive little or no benefit from the improvements and are therefore exempted from assessment, but shall be reviewed annually by the assessment engineer to confirm the parcels current development status. Government owned properties or public properties are not necessarily exempt properties ' and shall be subject to special benefit assessment unless it qualifies for an exempt status. Special Cases — In many districts where multiple land use classifications are involved, there is usually one or more properties that the standard land use classifications does not accurately identify the special benefits received from the improvements. For example, a parcel may be identified as a Vacant Residential property, however only a small percentage of the parcel's total acreage can actually be developed. In this case, an appropriate calculation would be based on the net acreage that can be utilized rather than the gross acreage of the parcel. The following table provides a summary of land use classifications and the Equivalent Benefit Unit calculations previously outlined. MuniFinancial Page 14 80 Engineer's Report City of Atascadero Street and Storm Drain Maintenance District No. 01 (Apple Valley) Land Uses and Equivalent Benefit Units Equivalent Property Type Benefit Units Multiplier Single-family Residential 1.000 per Unit/Lot/Parcel 0.750 per Unit for the First 50 Units Multi-family Residential 0.500 per Unit for Units 51-100 0.250 per Unit for all remaining units Condominium/Town-home Units 0.750 per Unit 1.000 per Planned SF-Residential Lot 0.750 per Planned Condominium Planned-Residential Development 0.750 per Unit for the First 50 Units 0.500 per Unit for Units 51-100 0.250 per Unit for all remaining units Vacant Residential Land 1.000 per Acre Exempt Parcels 0.000 per Parcel The following formula is used to calculate each parcel's EBU(proportional benefit). Parcel Type EBU x Acres or Units = Parcel EBU The total number of Equivalent Benefit Units (EBU's) is the sum of all individual EBU's applied to parcels that receive special benefit from the improvements. An assessment amount per EBU (Assessment Rate) for the improvements is established by taking the total cost of the improvements and dividing that amount by the total number of EBU's of all parcels benefiting from the improvements. This Rate is then applied back to each parcel's individual EBU to determine the parcel's proportionate benefit and assessment obligation for the improvements. Total Balance to Levy / Total EBU = Levy per EBU Levy per EBU x Parcel EBU = Parcel Levy Amount D. Assessment Range Formula Any new or increased assessment requires certain noticing and meeting requirements by law. Prior to the passage of Proposition 218 (California Constitution Articles XIIIC and XIIID), legislative changes in the Brown Act defined a "new or increased assessment" to exclude certain conditions. These conditions included "any assessment that does not exceed an assessment formula or range of assessments previously adopted by the agency or approved MuniFinancial Page 15 81 Engineer's Report City of Atascadero Street and Storm Drain Maintenance District No. 01 (Apple Valley) ." T by the voters to the.area where the assessment is unposed This definition and conditions d were later confirmed through Senate Bill 919 (Proposition 218 implementing legislation). The purpose of establishing an Assessment Range Formula is to provide for reasonable increases and inflationary adjustment to annual assessments without requiring costly noticing and mailing procedures, which could add to the District costs and assessments. As part of the District formation, the notice and assessment ballots presented to the property owners for approval, includes a maximum assessment amount for fiscal year 2005/2006 (initial maximum assessment),identification of the corresponding maximum assessment rate and a summary of the Assessment Range Formula described herein. The Assessment Range Formula for this District shall be applied to all future assessments and is generally defined: • If the proposed annual assessment (levy per EBU) for the upcoming fiscal year is less than or equal to the adjusted Maximum Assessment Rate, then the proposed annual assessment is not considered an increased assessment. • The Maximum Assessment Rate is equal to the (Initial) Maximum Assessment Rate established for fiscal year 2005/2006 adjusted annually by the greater of, three percent (39/o) or the annual percentage change in the Consumer Price Index (CPI) of"All Urban Consumers" for the San Francisco-Oakland-San Jose Area. Beginning in the second fiscal year(fiscal year 2006/2007) and each fiscal year thereafter,the Maximum Assessment Rate will be recalculated and a new Maximum Assessment Rate established for the fiscal year utilizing the Assessment Range Formula described above.The Maximum Assessment Rate shall be calculated independent of the District's annual budget and proposed assessment. The annual percentage change in CPI shall be based on available data provided by the U.S. Department of Labor; Bureau of Labor Statistics at the time the annual Report is prepared. Should the Bureau of Labor Statistics revise such index or discontinue the preparation of such index, the City shall use the revised index or comparable system as approved by the City Council for determining fluctuations in the cost of living. ' Any proposed annual assessment (rate per EBU) less than or equal to the calculated (adjusted) Maximum Assessment Rate is not considered an increased assessment,even if the proposed assessment is significantly greater than the assessment applied in the prior fiscal year. Likewise, modifications to the method of apportionment that increases the proportional special benefit assigned to a particular land use classification would be considered an increased assessment. Conversely, reductions in the proportional special benefit assigned to a land use classifications is permitted. Changes in land use or size of an individual property resulting in an assessment increase, is not considered an increased assessment. To impose a new or increased assessment other than the annual inflationary adjustment provided by the preceding Assessment Range Formula, the City must comply with the provisions of the California Constitution Article =113 Section 4c, that requires a public MuniFinancial Page 16 82 Engineer's Report City of Atascadero Street and Storm Drain Maintenance District No. 01 (Apple Valley) hearing and certain protest procedures including mailed notice of the public hearing and property owner protest balloting. Property owners through the balloting process must approve a proposed new or increased assessment before such an assessment may be imposed. As part of the District formation, property owners shall be balloted for a special benefit assessment necessary for the annual operation and maintenance of the District improvements. Although this Report establishes an assessment amount for each of the existing properties within the District and this amount is used to determine if majority protest exists in the ballot tabulation, these assessments are based on the initial magnum assessment rate and method of apportionment described in this Report. The notice and ballot presented to the property owners identifies the initial maximum assessment rate and the Assessment Range Formula, described above and is the basis upon which the property owners cast their ballots. MuniFinancial Page 17 83 Engineer's Report City of Atascadero Street and Storm Drain Maintenance District No. 01 (Apple Valley) PART III - DISTRICT BUDGET Total Special First Budget Items g Proposed Benefit Year's DIRECT COSTS Budget Assessment Assessment Streets&Roads Annual Inspection&Maintenance:Street Surfaces 1,606 1,606 1,606 Annual Inspection&Maintenance:Curbs,Gutters,Approaches&Sidewalks 1,449 1,449 1,449 Annual Inspection&Maintenance:Signs,Barricades&Other Right-of-Way Facilities 67 67 67 Mechanized Cleaning&Sweeping.Streets 657 657 657 Collection for Periodic Street Surface Activities:Slurry Seal,Overlay,Non-Asphalt Repairs 18,453 18,453 18,453 Collection for Periodic Street Re-striping 55 55 55 Collection for Periodic Repair Activities:Curbs,Gutters,Approaches&Sidewalks 736 736 736 Total Annual Funding:Streets 23,023 23,023 23,023 Storm Drain Improvements Annual Inspection&Maintenance:Drainage Basins and/or Channelways 2,187 2,187 2,187 Annual Inspection&Maintenance:Basin/Channelway Fencing and/or Access Roads 56 56 56 Annual Inspection,Maintenance&Cleaning:Inlets,Catch Basins,Manholes,Outlets&Drywells 208 208 208 Annual Inspection&Maintenance:Storm Drain Pipes 416 416 416 Collection for Periodic Debris Removal,Rehabilitation&Repairs:Basin&Channelway Surfaces 321 321 321 Collection for Periodic Repairs&Rehabilitation:Storm Drain Fencing and/or Access Roads 316 316 316 Collection for Periodic Repairs&Rehabilitation:Storm Drain Infrastructure 498 498 498 Total Annual Funding:Storm Drain Improvements 4,002 4,002 4,002 ADMINISTRATION EXPENSES City Annual Administration&Overhead 2,862 2,862 2,862 Professional Fees&Services 3,108 3,108 3,108 County Administration Fee 39 39 39 Miscellaneous Administration Expenses 150 150 150 Total Annual Administration Costs 6,159 6,159 6,159 LEVY ADJUSTMENTS Reserve Fund Collection/(Transfer) 1,659 1,659 1,659 General Benefit(Contribution) _ _ - Revenues from Other Sources(Contribution) Total Levy Adjustments 1,659 1,659 1,659 BALANCE TO LEVY $ 34,843 $ 34,843 $34,843 Total Parcels 72 5 , Parcels Levied 70 4 Total EBU 70.00 70.00 Levy per EBU $497.76 $497.76 Maximum Levy per EBU $497.76 $497.76 Estimated Ending Reserve Balance 1,659 1,659 1,659 Estimated Ending Capital Improvement Project(CIP)Balance 20,379 20,379 20,379 Estimated Ending Fund Balance(Reserves&CIP) $ 22,038J $ 22,038 $22,038 The proposed Maximum Assessment per EBU shown above is based on the cost of providing the District improvements and does not include any other assessments or charges imposed on the properties. MuniFinancial Page 18 84 Engineer's Report City of Atascadero Street and Storm Drain Maintenance District No. 01 (Apple Valley) PART IV - DISTRICT DIAGRAMS The parcels within the Street and Storm Drain Maintenance District No. 01 (Apple Valley) consist of all lots,parcels and subdivisions of land located in the planned residential development known as Apple Valley, Tract 2495. The District covers approximately twenty-eight acres (28.35 acres) in the northern portion of the City of Atascadero. The following District Diagram is based on the San Luis Obispo County Assessor's Maps and the San Luis Obispo County Assessor's information and identifies all the parcels of land within the proposed District, as the same existed at the time this Report was prepared. The combination of this map and the Assessment Roll contained in this Report constitute the District Assessment Diagram. The maximum assessment rate, assessment range formula and the proposed assessment amount for each of the existing parcels within the District as described herein, shall be presented to the property owners of record for approval or protest in accordance with the provisions of the California.Constitution. MuniFinancial Page 19 85 0 N bhp w� w II w w Hg., oO � , w 4 � QzzRs ZI--� actin r. z ° � 9017tn Aw (L 0 � . F w 86 Engineer's Report City of Atascadero Street and Storm Drain Maintenance District No. 01 (Apple Valley) PART V - ASSESSMENT ROLL Parcel identification for each lot or parcel within the District is based on the Assessment Diagram presented herein and is based on available parcel maps and property data from the San Luis Obispo County Assessor's Office at the time the Engineer's Report was prepared. A listing of the proposed lots and parcels to be assessed within this District along with the assessment amounts is provided herein. Non-assessable lots or parcels may include, but are not limited to public streets and other roadways (typically not assigned an APN by the County); dedicated public easements, open space areas,right- of-ways,common areas;landlocked parcels,small parcels vacated by the County,bifurcated lots,and any other property that can not be developed or has little or no value. These types of parcels are considered to receive little or no benefit from the improvements and are therefore exempted from assessment. If any parcel submitted for collection is identified by the County Auditor/Controller to be an invalid parcel number for the fiscal year, a corrected parcel number and/or new parcel numbers will be identified and resubmitted to the County Auditor/Controller. The assessment amount to be levied and collected for the resubmitted parcel or parcels shall be based on the method of apportionment and assessment rate described in this Report as approved by the City Council. Therefore,if a single parcel is subdivided to multiple parcels, the assessment amount applied to each of the new parcels shall be recalculated and applied according to the approved method of apportionment and assessment rate rather than a proportionate share of the original assessment. The following is a list of the parcels and proposed assessment amounts for each of the parcels within the District as determined by the assessment rates and method of apportionment described herein: Assessor's Proposed First Parcel Maximum Year's Lot Number Overall Land Use EBU Assessment Assessment 1 049-191-002 Planned-Residential Development 19.00 $ 9,457.44 $ 9,457.44 2 049-191-026 Planned-Residential Development 13.00 $ 6,470.88 $ 6,470.88 3 049-191-027 Planned-Residential Development 21.00 $ 10,452.96 $ 10,452.96 4 049-191-028 Planned-Residential Development - $ - $ - 5 049-191-030 Planned-Residential Development 17.00 $ 8,461.92 $ 8,461.92 Totals 5 70.00 $ 34,843.20 $ 34,843.20 MuniFinancial Page 21 87 DRAFT RESOLUTION D RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ATASCADERO, CALIFORNIA, DECLARING THE RESULTS OF THE PROPERTY OWNER PROTEST BALLOT PROCEEDING FOR LANDSCAPING AND LIGHTING DISTRICT NO. 01 (APPLE VALLEY) AND APPROVING CERTAIN RELATED ACTIONS WHEREAS, the City Council of the City of Atascadero, California(hereafter referred to as "City Council") called and duly held a property owner protest proceeding for Landscaping and Lighting District No. Ol (Apple Valley) (hereafter referred to as "District") Pursuant to the provisions of the Landscaping and Lighting Act of 1972, Part 2 of Division 15 of the Streets and Highways Code of California,beginning with Section 22500 (hereafter referred to as the"Act") and the California Constitution Articles XIIIC and XIIID, for the purpose of presenting to the qualified property owners within the District the annual levy of assessments for the costs and expenses related to the ongoing operation, maintenance and servicing of local landscaping, lighting and appurtenant facilities installed in conjunction with the development of properties within the residential subdivision known as Apple Valley Tract 2495; and, WHEREAS, the landowners of record within the District as of the close of the Public Hearing held on May 24, 2005 did cast their ballots, weighted by the proportional financial obligation of each ballot, the results of which are illustrated below: Yes: $ No: $ NOW, THEREFORE,BE IT RESOLVED,by the City Council of the City of Atascadero SECTION 1. The above recitals are true and correct. SECTION 2. The results of the tabulation of the valid property owner protest ballots returned by the property owners of record within said District, prior to the conclusion of the Public Hearing and property owner protest proceeding held for the District on May 24, 2005, is hereby confirmed and made public record. 88 Draft Resolution D Page Two SECTION 3. The tabulation of the valid property owner protest ballots returned by the property owners within said District indicates that majority protest of the assessment does not exist, and the City Council is authorized to take the necessary steps to levy the assessments as approved. SECTION 4. The City Clerk is hereby directed to enter this Resolution on the minutes of the City Council, which shall constitute the official declaration of the result of such property owner protest proceeding. SECTION 5. This Resolution shall become effective immediately upon its adoption. SECTION 6. The City Clerk shall certify the adoption of this Resolution. On motion by Council Member and seconded by Council Member the foregoing Resolution is hereby adopted in its entirety on the following roll call vote: AYES NOES: ABSENT: ADOPTED: CITY OF ATASCADERO By: Wendy Scalise, Mayor Attest: Marcia McClure Torgerson, C.M.C.,City Clerk APPROVED AS TO FORM: Patrick L. Enright, City Attorney 89 DRAFT RESOLUTION E RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ATASCADERO, CALIFORNIA, AMENDING AND/OR APPROVING THE ENGINEER'S REPORT REGARDING THE FORMATION OF LANDSCAPING AND LIGHTING DISTRICT NO. 01 (APPLE VALLEY); AND THE LEVY AND COLLECTION OF ANNUAL ASSESSMENTS RELATED THERETO COMMENCING IN FISCAL YEAR 2005/2006 WHEREAS, The City Council of the City of Atascadero, California (hereafter referred to as "City Council"), pursuant to the provisions of Part 2 of Division 15 of the California Streets and Highways Code, did by previous Resolution order the Engineer, MuniFinancial, to prepare and file a report in accordance with Article 4 of Chapter 1 of Part 2 of Division 15 of the California Streets and Highways Code, commencing with Section 22565, in connection with the formation of Landscaping and Lighting District No. 01 (Apple Valley) (hereafter referred to as the "District") and the proposed levy and collection of assessments related thereto commencing with fiscal year 2005/2006, said fiscal year starting July 1,2005 and ending June 30,2006; and, WHEREAS, The Engineer has prepared and filed with the City Clerk of the City of Atascadero and the City Clerk has presented to the City Council such report entitled "Engineer's Report for the Formation of Landscaping and Lighting District No. 01 (Apple Valley), fiscal year 2005/2006" (hereafter referred to as "Engineer's Report") in accordance with the Landscaping and Lighting Act of 1972, Part 2 of Division 15 of the Streets and Highways Code of California, beginning with Section 22500(hereafter referred to as the"Act"); and, WHEREAS, The City Council has carefully examined and reviewed the Engineer's Report as presented, and is satisfied with each and all of the items and documents as set forth therein, and finds that the levy of assessments has been spread in accordance with the special benefits received from the improvements, operation, maintenance and services to be performed, as set forth in said Engineer's Report. NOW, THEREFORE,BE IT RESOLVED, by the City Council of the City of Atascadero SECTION 1. The above recitals are all true and correct. 90 Draft Resolution E Page Two SECTION 2. The Engineer's Report as presented,consists of the following: a. Plans and specifications that describe the District and Improvements. b. Method of Apportionment that outlines the special benefit conferred on properties within the District from the improvements and the calculations used to establish each parcel's proportional special benefit assessment as well as a description of the assessment range formula that establishes the maximum assessment rate in subsequent fiscal years. c. The Budget that outlines the costs and expenses to service, and maintain the improvements including incidental expenses authorized by the Act to operate the District. d. An Assessment Diagram that identifies the boundaries of the District. e. An Assessment Roll containing each of the Assessor Parcel Numbers that comprise the District and the proportional maximum assessment and first year's assessment commencing fiscal year 2005/2006. The 3. SECTIONEngineer's O Report as presented, is hereby approved (as submitted or amended by direction of this City Council), and is ordered to be filed in the Office of the City Clerk as a permanent record and to remain open to public inspection. SECTION 4. The City Clerk shall certify to the passage and adoption of this Resolution and the minutes of this meeting shall so reflect the adoption and approval of the Engineer's Report. 91 Draft Resolution E Page Two On motion by Council Member and seconded by Council Member ,the foregoing Resolution is hereby adopted in its entirety on the following roll call vote: AYES: NOES: ABSENT: ADOPTED: CITY OF ATASCADERO By: Wendy Scalise, Mayor Attest: Marcia McClure Torgerson, C.M.C., City Clerk APPROVED AS TO FORM: Patrick L.Enright, City Attorney 92 DRAFT RESOLUTION F RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ! ATASCADERO, CALIFORNIA CONFIRMING THE FORMATION OF LANDSCAPING AND LIGHTING DISTRICT NO. 01 (APPLE VALLEY) AND ORDERING THE LEVY AND COLLECTION OF ASSESSMENTS FOR FISCAL YEAR 2005/2006 WHEREAS, The City Council of the City of Atascadero, California (hereafter referred to as City Council)has by previous Resolutions initiated proceedings and declared its intention to form Landscaping and Lighting District No. 01 (Apple Valley) (hereafter referred to as the"District") and to levy special benefit assessments against parcels of land within the said District commencing with fiscal year 2005/2006, said fiscal year commencing July 1, 2005 and ending June 30, 2006; pursuant to the provisions of the Landscaping and Lighting Act of 1972,Part 2 of Division 15 of the California Streets and Highways Code, commencing with Section 22500 (hereinafter referred to as the "Act") to pay the costs and expenses of operation, maintenance, repair and servicing of local landscaping, street lighting and all appurtenant facilities related thereto; and, WHEREAS, The Engineer selected by the City Council has prepared and filed with the City Clerk, and the City Clerk has presented to the City Council an Engineer's Report in connection with the proposed formation and levy of special benefit assessments upon eligible parcels of land within the District, and the City Council did by previous Resolution adopt and approve said Engineer's Report; and, WHEREAS, The City Council desires to levy and collect assessments against parcels of land within the District for the fiscal year commencing July 1, 2005 and ending June 30, 2006, to pay the costs and expenses of operation, maintenance, repair and servicing of local landscaping, street lighting, and all appurtenant facilities related thereto; and, WHEREAS, The City Council has conducted a property owner protest ballot proceeding for the District assessments proposed to be levied commencing fiscal year 2005/2006, and majority protest of the assessments described in the Engineer's Report did not exist pursuant to the provisions of the California State Constitution Article XMD. 93 Draft Resolution F Page Two NOW, THEREFORE,BE IT RESOLVED,by the City Council of the City of Atascadero SECTION 1. Following notice duly given, the City Council has held a full and fair Public Hearing regarding its Resolution approving the Engineer's Report prepared in connection therewith; the levy and collection of assessments, and considered all oral and written statements, protests and communications made or filed by interested persons. The City Council has determined that the property owners in accordance with the requirements of the California State Constitution, Article XIDD have approved the assessments so presented. SECTION 2. Based upon its review (and amendments, as applicable) of the Engineer's Report, a copy of which has been presented to the City Council and which has been filed with the City Clerk, the City.Council hereby finds and determines that: a. The land within District will receive special benefit by the operation, maintenance and servicing of improvements to be provided by the District. b. The District includes all of the lands receiving such special benefit. c. The net amount to be assessed upon the lands within the District is in accordance and apportioned by a formula and method which fairly distributes the net amount among all eligible parcels in proportion to the special benefit to be received by each parcel from the improvements and services for the fiscal year commencing July 1, 2005 and ending June 30, 2006. SECTION 3. The City Council hereby orders the proposed improvements to be made, which improvements are briefly described as the maintenance, operation, administration and servicing of the improvements that may include, but is not limited to local street lights,landscaping, parks and open space areas within the District and all appurtenant facilities related thereto. SECTION 4. The maintenance, operation and servicing of improvements shall be performed pursuant to the Act and the County Auditor of San Luis Obispo County shall enter on the County Assessment Roll opposite each parcel of land the amount of levy, and such levies shall be collected at the same time and in the same manner as the County taxes are collected. After collection by the County, the net amount of the levy shall be paid to the City Treasurer. 94 Draft Resolution F Page Three SECTION 5. The City Treasurer shall deposit all money representing assessments collected by the County for the District to the credit of a fund for the Landscaping and Lighting District No. Ol (Apple Valley), and such money shall be expended only for the maintenance, operation and servicing of the improvements as described in the Engineers Report and generally described in Section 3 of this Resolution. SECTION 6. The adoption of this Resolution constitutes the formation of the District, the establishment of the maximum assessment rate described in the Engineer's Report and the levy of assessments for the fiscal year commencing July 1, 2005 and ending June 30, 2006. SECTION 7. The City Clerk is hereby authorized and directed to file the levy with the County Auditor upon adoption of this Resolution. On motion by Council Member and seconded by Council Member ,the foregoing Resolution is hereby adopted in its entirety on the following roll call vote: AYES: NOES: ABSENT: ADOPTED: CITY OF ATASCADERO By: Wendy Scalise, Mayor Attest: Marcia McClure Torgerson, C.M.C.,City Clerk APPROVED AS TO FORM: Patrick L. Enright, City Attorney 95 CITY OF ATASCADERO ENGINEER'S REPORT FOR THE FORMATION OF LANDSCAPING AND LIGHTING DISTRICT NO. 01 APPLE VALLEY) FISCAL YEAR 2005/2006 M ATASCADERO LANDSCAPING AND LIGHTING DISTRICT NO. 01 (APPLE VALLEY) " Intent Meeting: April 12, 2005 Public Hearing: May 24, 2005 nn IviumFinanCial Corporate Office Office Locations 27368 Via Industria Anaheim,CA Pensacola,FL Suite 110 Lancaster,CA Phoenix,AZ Temecula,CA 92590 Los Angeles Regional Office Sacramento,CA Tel: (909)587-3500 Oakland,CA Seattle,WA Tel: (800)755-MUNI(6864) Fax: (909)587-3510 www.muni.com 96 ENGINEER'S REPORT AFFIDAVIT Formation of the Atascadero Landscaping and Lighting District No. 01 (Apple Valley) And establishment of Annual Assessments for said District The District includes all parcels of land within the residential subdivision known as Apple Valley, Tract 2495 City of Atascadero, County of San Luis Obispo, State of California This Report and the enclosed budget, assessments, descriptions and diagrams outline the proposed formation of Landscaping and Lighting District No. 01 (Apple Valley) and includes each lot, parcel, and subdivision of land within said District, as the same existed at the time of the passage of the Resolution of Intention. Reference is hereby made to the San Luis Obispo County Assessor's maps for a detailed description of the lines and dimensions of parcels within the District. The undersigned respectfully submits the enclosed Report as directed by the City Council. Dated this day of 32005. MuniFinancial Assessment Engineer On Behalf of the City of Atascadero By: Jim McGuire Senior Project Manager By: Richard Kopecky R. C.E. # 16742 97 TABLE OF CONTENTS INTRODUCTION...............................................................................................1 PART I — PLANS AND SPECIFICATIONS ......................................................4 A. Description of the District......................................................................................4 B. Description of Improvements and Services....................................................4 PART II — METHOD OF APPORTIONMENT.................................................8 A. General............................................................................................................................8 B. Benefit Analysis...........................................................................................................8 C. Assessment Methodology......................................................................................10 D. Assessment Range Formula.................................................................................14 PART III — DISTRICT BUDGET....................................................................17 PART IV — DISTRICT DIAGRAMS.................................................................18 PARTV—ASSESSMENT ROLL.......................................................................20 98 Engineer's Report City of Atascadero Landscaping and Lighting District No. 01 (Apple Valley) INTRODUCTION Pursuant to the provisions of the Landscape and Lighting Act of 1972, being Part 2 of Division 15 of the California Streets and Highways Code, commencing with Section 22500 (hereafter referred to as the "1972 Act"), and in compliance with the substantive and procedural requirements of the California State Constitution Article XIIID (hereafter referred to as the "California Constitution"), the City Council of the City of Atascadero, County of San Luis Obispo, State of California (hereafter referred to as "City"), in connection with the proceedings required for the establishment of the special benefit assessment district designated as: Landscaping and Lighting District No. 01 (Apple Valley) (hereafter referred to as "District"), which includes all lots and parcels of land within the residential subdivision known as Apple Valley,Tract 2495 within the City limits of Atascadero. This Engineer's Report (hereafter referred to as "Report") has been prepared in connection with the formation of said District and the levy and collection of annual assessments related thereto commencing in fiscal year 2005/2006, as required pursuant to Chapter 1, Article 4 of the 1972 Act. The City Council proposes to form the District, and levy and collect annual assessments on the County tax rolls to provide ongoing funding for the costs and expenses required to service and maintain the landscaping and lighting improvements associated with and resulting from the development of properties within the District. The improvements to be provided by the District and the assessments described herein are made pursuant to the 1972 Act and the substantive and procedural provisions of the California Constitution Article XIIID. This Report describes the District,the improvements, and the proposed assessments to be levied against properties in connection with the special benefits the properties will receive from the maintenance and servicing of the District improvements. The formation of this District and the annual assessments will provide a funding source (annual assessments) for the continued operation and maintenance of public landscaping and lighting improvements installed in connection with the development of properties within the District. The improvements and assessments described in this Report are based on the planned development of properties within the District and represent an estimate of the direct expenditures, incidental expenses, and fund balances that will be necessary to maintain and service the improvements. The formation of the District, the structure of the District (organization), the proposed improvements, the method of apportionment, and assessments described herein are based on current development plans and specifications for Tract 2495; and by reference these plans and specifications are made part of this Report. MuniFinancial Page 1 99 En ineer's Report g P City of Atascadero Landscaping and Lighting District No. 01 (Apple Valley) « f this Report, refers to an individual property assigned its The word parcel, for the purposes o p P P �' � own Assessor's Parcel Number (APN) by the San Luis Obispo County Assessor's Office. The San Luis Obispo County Auditor/Controller uses Assessor's Parcel Numbers and specific Fund Numbers to identify properties to be assessed on the tax roll for the special benefit assessments. As part of this District formation, the City of Atascadero shall conduct a Property Owner Protest Ballot proceeding for the proposed levy of a new assessment pursuant to the provisions of the California Constitution, Article XIIID Section 4. In conjunction with this ballot proceeding, the City Council will conduct a noticed public hearing to consider public testimonies, comments and written protests regarding the formation of the District and levy of assessments. Upon conclusion of the public hearing,property owner protest ballots received will be opened and tabulated to determine whether majority protest exists (ballots shall be weighted based on assessment amounts), and by resolution the City Council will confirm the results of the ballot tabulation. If majority protest exists, proceedings for the levy of District assessments shall be abandoned. If tabulation of the ballots indicates that majority protest does not exist for the proposed assessments and the assessment range formula presented and described herein, the City Council may approve the Report (as submitted or amended), order the formation of the District, and approve the levy and collection of assessments. In such case, the assessments for fiscal year 2005/2006 shall be submitted to the San Luis Obispo County Auditor/Controller for inclusion on the property tax roll for each parcel. Each subsequent fiscal year, an Engineer's Report shall be prepared and presented to the City Council describing the District any changes to the District or improvements and the proposed budget and assessments for that fiscal year and the City Council shall hold a noticed public hearing regarding these matters prior to approving and ordering the proposed levy of assessments. If the proposed assessments for the District exceed the maximum assessment described herein (as approved by the property owners),the new or increased assessment must be confirmed through another property owner protest ballot proceeding before such an assessment may be imposed. It should be noted that an increased assessment to an individual property resulting from changes in development or land use does not constitute an increased assessment. This Report consists of five (5) parts: Part I Plans and Specifications: A description of the District boundaries and the proposed improvements associated with the District. The District is being formed with a single benefit zone encompassing all properties within the territory identified as the residential subdivision of Apple Valley,Tract 2495. Part II The Method of Apportionment: A discussion of benefits the improvements and services provide to properties within the District and the method of calculating each property's proportional special benefit and annual assessment. This section also identifies and outlines an Assessment Range Formula that provides for an annual adjustment to the maximum assessment MuniFinancial Page 2 100 Engineer's Report City of Atascadero Landscaping and Lighting District No. 01 (Apple Valley) rate that establishes limits on future assessments, but also provides for reasonable cost adjustments due to inflation without the added expense of additional property owner protest ballot proceedings. Part III The District Budget: An estimate of the annual costs to operate, maintain and service the landscaping and lighting improvements and facilities installed and constructed as part of the development of properties within the District. This budget includes an estimate of anticipated direct maintenance costs and incidental expenses including, but not limited to administration expenses and the collection of appropriate fund balances to establish an initial maximum assessment to be approved by the property owners of record. The special benefit assessments are based on the overall operation costs minus any costs that are considered general benefit. The proposed assessments for the first fiscal year (2005/2006), and each subsequent year shall be based on the estimated net annual cost of operating, maintaining and servicing the District improvements for that fiscal year as well as funds to be collected in installments to perform maintenance activities that cannot be reasonably collected in a single fiscal year's assessments. The proposed maximum assessment (Rate per Equivalent Benefit Unit) identified in the budget of this Report establishes the initial maximum assessment for the District in fiscal year 2005/2006 and shall be adjusted annually by the Assessment Range Formula described in the method of apportionment. Part IV District Diagram: A Diagram showing the exterior boundaries of the District is provided in this Report and includes all parcels that will receive special benefits from the improvements. Parcel identification, the lines and dimensions of each lot, parcel and subdivision of land within the District, are inclusive of all parcels as shown on the San Luis Obispo County Assessor's Parcel Maps as they existed at the time of the passage of the Resolution of Intention, and shall include all subsequent subdivisions, lot line adjustments or parcel changes therein. Reference is hereby made to the San Luis Obispo County Assessor's maps for a detailed description of the lines and dimensions of each lot and parcel of land within the District. Part V Assessment Roll: A listing of the proposed assessment amount to be presented to the property owners of record in the protest ballot proceedings required pursuant to the provisions of the California Constitution. The proposed assessment amount for each parcel is based on the parcel's proportional special benefit as outlined in the method of apportionment and the proposed initial maximum assessment rate. MuniFinancial Page 3 101 Engineer's Report City of Atascadero Landscaping and Lighting District No.01 (Apple Valley) PART I - PLANS AND SPECIFICATIONS A. Description of the District The territory within the District consists of all lots, parcels and subdivisions of land within the proposed residential subdivision known as the Apple Valley, Tract 2495, which encompasses an area of land totaling approximately twenty-eight acres (28.35 acres). This residential subdivision is planned to include seventy (70) single-family residential homes at build-out. The planned subdivision is situated in the northern portion of the City of Atascadero just southwest of Highway 101 and is generally located: • South of Del Rio Road; • North of Conejo Road; • West of Ramona Road; and, • East of Graves Creek The parcels within the District at the time this Report was prepared are identified by the San Luis Obispo County Assessor's Office as parcel numbers: 049-191-002; 049-191- 016;049-191-027;049-191-028; and 049-191-030. B. Description of Improvements and Services Improvements and Services Permitted Pursuant to the 1972 Act As generally defined by the Landscaping and Lighting Act of 1972 and applicable to this - District, the improvements and associated assessments may include one or more of the following: 1) The installation or planting of landscaping; 2) The installation or construction of statuary, fountains, and other ornamental structures and facilities; 3) The installation or construction of public lighting facilities including, but not limited to street lights and traffic signals; 4) The installation or construction of any facilities which are appurtenant to any of the foregoing or which are necessary or convenient for the maintenance or servicing thereof; 5) The installation of park or recreational improvements, including, but not limited to, all of the following: MuniFinancial Page 4 102 Engineer's Report City of Atascadero Landscaping and Lighting District No. 01 (Apple Valley) a) Land preparation, such as grading, leveling, cutting and filling, sod, landscaping, irrigation systems, sidewalks, and drainage. b) Lights,playground equipment,play courts, and public restrooms. 6) The acquisition of land for park, recreational,or open-space purposes or any existing improvement otherwise authorized pursuant to this section. 7) The maintenance or servicing, of any of the foregoing including the furnishing of services and materials for the ordinary and usual maintenance, operation, and servicing of any improvement including but not limited to: a) Repair,removal, or replacement of all or any part of any improvements; b) Grading, clearing, removal of debris, the installation or construction of curbs, gutters, walls, sidewalks, or paving, or water, irrigation, drainage, or electrical facilities; c) Providing for the life, growth, health, and beauty of landscaping, including cultivation, irrigation, trimming, spraying, fertilizing, or treating for disease or injury; d) The removal of trimmings,rubbish, debris, and other solid waste; e) The cleaning, sandblasting, and painting of walls and other improvements to remove or cover graffiti; Electric current or energy,gas, or other illuminating agent for any public lighting facilities or for the lighting or operation of any other improvements; g) Water for the irrigation of any landscaping, the operation of any fountains, or the maintenance of any other improvements. 8) Incidental expenses associated with the improvements including,but not limited to: a) The cost of preparation of the report, including plans, specifications, estimates, diagram, and assessment; b) The costs of printing, advertising, and the publishing, posting and mailing of notices; c) Compensation payable to the County for collection of assessments; d) Compensation of any engineer or attorney employed to render services; e) Any other expenses incidental to the construction, installation, or maintenance and servicing of the improvements; Costs associated with any elections held for the approval of a new or increased assessment. General Description of the Improvements The purpose of this District is to ensure the ongoing maintenance, operation and servicing of local landscaping and street lighting improvements established or installed in connection with development of properties within the District.The improvements may consist of all or MuniFinancial Page 5 103 Engineer's Report City of Atascadero Landscaping and Lighting District No. 01 (Apple Valley) a portion of the public landscaped areas, street lighting and appurtenant facilities within and adjacent to the District (Tract 2495). These improvements generally include, but are not limited to the materials, equipment, utilities, labor, appurtenant facilities and expenses necessary for the ongoing maintenance and operation of public street lighting as well as landscaped parkways, medians, slopes, trails, park areas, drainage basins, open space areas and other designated easements or right-of-ways constructed and installed as part of the development plans and agreements approved for the develop of each lot and parcel within the District. The improvements to be maintained and funded entirely or partially through the District assessments are generally described as: • Streetscape landscaping including street trees located on the perimeter of the development and interior streets of Tract 2495 that are within the public right-of- ways or easements and dedicated to the City for maintenance; • Open space areas and fuel modification areas within or adjacent to the District boundaries; • Park areas, recreational equipment, trails and landscaped drainage facilities developed and constructed as part of developing properties within Tract 2495; • Public lighting facilities including all street lighting, safety lighting and ornamental lighting installed as part of the residential development or landscaped improvement areas; • All appurtenant facilities, equipment, materials and utilities related to the aforementioned improvements; • Specifically not included as District improvements are those improvements located on private property,improvements and facilities that may be provided or maintained by an agency other than the City;improvements and facilities that may be provide by another assessment or tax levied by the City or any improvement provided and maintained by a Homeowner's Association or similar entity. Detailed maps and descriptions of the location and extent of the specific improvements to be maintained by the District are on file in the Office of Public Works and by'reference are made part of this Report. Those portions of the District improvements that may be identified as general benefit or will be funded in whole or in part by other revenue sources as part of the approved development agreements, will not be included as part of the District assessments. The net annual cost to provide and maintain the improvements determined to be of special benefit shall be allocated to each property in proportion to the special benefits received. Landscape Improvements The landscape improvements for the District may include, but are not limited to turf, ground cover, shrubs and plants, trees,irrigation and drainage systems, ornamental lighting, masonry walls or other fencing, hardscape improvements, monuments, and associated appurtenant facilities located within the landscape easements or public right-of-ways. Specifically the landscape improvement areas for this District are identified as: MuniFinancial Page 6 104 Engineer's Report City of Atascadero Landscaping and Lighting District No.01 (Apple Valley) • Approximately 30,580 square feet of streetscape (parkway) landscaping within the public right-of-ways located on the perimeter of the development (south side of Del Rio Road); and along various locations of the interior streets including Via Colonia Court, San Ramon Road, Via Huerto Court, Avenida Manzana, and San Ramon Road. • Approximately 108 street trees located along Del Rio Road, Via Colonia Court, San Ramon Road, Via Huerto Court, Avenida Manzana, San Ramon Road and Conejo Road; • Approximately 12,541 square feet of landscaping and trees within the median islands on San Ramon Road located at the two entryways to the development(Del Rio Road and Conejo Road); • Approximately 106,460 square feet of non-irrigated open space area within the District; • Approximately 109,837 square feet of irrigated park and open space areas within the boundaries of the District including 56,647 square feet of turf; 40,335 square feet of irrigated open space; and 12,855 square feet of landscaped slopes within two drainage basins (6,690 and 6,165 square feet respectively); along with various trees and picnic areas; • Approximately 10,320 square feet of paths and trails, 25,394 square feet sidewalks and 5,145 linear feet of fencing within and adjacent to the various landscape improvement areas; Public Lighting Improvements The lighting improvements may include but are not limited to the cost of providing electrical energy and servicing of lighting fixtures, poles, meters, conduits, electrical cable and associated appurtenant facilities associated with: • Public streetlights located on the streets within and adjacent to the development. There are two (2) streetlights currently planned for Tract 2495. • Lighting facilities located within the landscaped areas including all safety lights, security lights or ornamental lights installed as part of the District improvements. MuniFinancial Page 7 105 Engineer's Report City of Atascadero Landscaping and Lighting District No. 01 (Apple Valley) PART II - METHOD OF APPORTIONMENT A. General The 1972 Act permits the establishment of assessment districts by agencies for the purpose of providing certain public improvements,which include the construction,maintenance,and servicing of public lights, landscaping and appurtenant facilities. The 1972 Act further requires that the cost of these improvements be levied according to benefit rather than assessed value: "The net amount to be assessed upon lands within an assessment district 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 benefits to be received by each such lot or parcel from the improvements." The method of apportionment described in this Report for allocation of special benefit assessments utilizes commonly accepted engineering practices and have been established pursuant to the 1972 Act and the provisions of the Califomia Constitution. The formulas used for calculating assessments reflects the composition of parcels within the District and the improvements and services provided, to fairly apportion the costs based on the special benefits to each parcel. B. Benefit Analysis Each of the proposed improvements, the associated costs and assessments have been carefully reviewed, identified and allocated based on special benefit pursuant to the provisions of the California Constitution and 1972 Act.The improvements provided by this, District and for which properties will be assessed have been identified as necessary,required and/or desired for the orderly development of the properties within the District to their full potential, consistent with the development plans and applicable portions of the City General Plan. As such, these improvements would be necessary and required of individual property owners for the development of such properties and the ongoing operation, servicing and maintenance of these improvements would be the financial obligation of those properties. Therefore, the improvements and the annual costs of ensuring the maintenance and operation of the improvements are a distinct and special benefit to the properties within the District. Any improvement or portion thereof that is considered to be of general benefit shall be funded by other revenue sources and not included as part of the special benefit assessments allocated to properties within the District. Special Benefit The method of apportionment (method of assessment) established herein is based on the premise that each assessed parcel within the District receives special benefits from the improvements and the desirability and security of those properties is enhanced by the MuniFinancial Page 8 106 Engineer's Report City of Atascadero Landscaping and Lighting District No. 01 (Apple Valley) presence of public lighting and well-maintained landscaping in close proximity to those properties. The special benefits associated with landscape improvements are specifically: • Enhanced desirability of properties through association with the improvements. • Improved aesthetic appeal of properties providing a positive representation of the area and properties. • Enhanced adaptation of the urban environment within the natural environment from adequate green space and landscaping. • Environmental enhancement through improved erosion resistance, dust and debris control, and fire prevention. • Increased sense of pride in ownership of property within the District resulting from well-maintained improvements associated with the properties. • Enhanced quality of life through well-maintained green space and landscaped areas. • Reduced criminal activity and property-related crimes (especially vandalism) against properties in the District through well-maintained surroundings and amenities including abatement of graffiti. • Enhanced environmental quality of the parcels by moderating temperatures, providing oxygenation and attenuating noise. The special benefits of street lighting and other public lighting facilities are the convenience, safety,and security of property,improvements,and goods.Specifically: • Enhanced deterrence of crime and the aid to police protection. • Increased nighttime safety on roads, streets and public areas. • Improved ability of pedestrians and motorists to see. • Improved ingress and egress to property. ' • Reduced vandalism and other criminal act and damage to improvements or property. • Improved traffic circulation and reduced nighttime accidents and personal property loss. All of the preceding special benefits contribute to the esthetic value and desirability of each of the assessed parcels within the District and thereby provide a special enhancement of the properties. Furthermore,it has been determined that the lack of funding to properly service and maintain the District improvements would have a negative impact on the properties within the District. MuniFinancial Page 9 107 Engineer's Report City of Atascadero Landscaping and Lighting District No. 01 (Apple Valley) General Benefit In reviewing each of the District improvements, the proximity of those improvements to both properties within the District and those outside the District as well as the reasons for installing and constructing such improvements,it is evident that the improvements are solely the result of developing properties within the District and the ongoing maintenance and operation of these improvements will directly effect the properties within the District. Although the improvements include public areas, easements, right-of-ways and other amenities available or visible to the public at large,the construction and installation of these improvements were only necessary for the development of properties within the District and were not required nor necessarily desired by any properties or developments outside the District boundary and any public access or use of the improvements by others is incidental. Therefore, it has been determined that the improvements and the ongoing maintenance, servicing and operation of those improvements provide no measurable general benefit to properties outside the District or to the public at large, but clearly provide distinct and special benefits to properties within the District. C. Assessment Methodology The method of apportionment for the District calculates the receipt of special benefit from the respective improvements based on the actual or proposed land use of the parcels within the District. The special benefit received by each lot or parcel is equated to the overall land use of parcels within the District based on the parcel's actual land use or proposed development. All costs associated with the improvements shall be fairly distributed among the parcels based upon the special benefit received by each parcel.Additionally,in compliance with the California Constitution Article XIIID Section 4, each parcel's assessment may not exceed the reasonable cost of the proportional special benefit conferred to that parcel. The benefit formula used to determine the assessment obligation is therefore based upon both the improvements that benefit the parcels within the District as well as the proposed land use of each property as compared to other parcels that benefit from those specific improvements. To identify and determine the special benefit to be received by each parcel and their proportionate share of the improvement costs it is necessary to consider the entire scope of the planned improvements as well as individual property development within the District. Upon review of the proposed improvements it has been determined that each of the residential parcel within the District receives special benefits from all the improvements to be funded by annual assessments and based on the planned property development a single zone of benefit is appropriate for the allocation of the assessments and proportional benefit. Equivalent Benefit Units: To assess benefits equitably it is necessary to relate each property's proportional special benefits to the special benefits of all other properties within the District. The method of apportionment established for most districts formed under the 1972 Benefit Act utilizes a MuniFinancial Page 10 108 Engineer's Report City of Atascadero Landscaping and Lighting District No. 01 (Apple Valley) weighted method of apportionment known as an Equivalent Benefit Unit (EBU) methodology that uses the single-family home site as the basic unit of assessment.A single- family home site equals one Equivalent Benefit Unit (EBU) and all other land uses are converted to a weighted EBU based on an assessment formula that equates the property's specific development status, type of development (land use), and size of the property, as compared to a single-family home site. Although the Equivalent Benefit Unit method of apportioning special benefit is most commonly used and applied to districts that have a wide range of land use classifications (residential and non-residential use), this District is comprised of only residential properties and the following apportionment analysis of special benefit addresses only residential land uses. Not all land use types described in the following are necessarily applicable to the development of properties within this District, but are presented for comparison purposes to support the proportional special benefit applied to those land use types within the District. Single-family Residential —This land use is defined as a fully subdivided residential home site with or without a structure. This land use is assessed 1.00 EBU per lot or parcel. This is the base value that all other properties are compared and weighted against (i.e.Equivalent Benefit Unit EBU). Multi-family Residential —This land use is defined as a fully subdivided residential parcel that has more than one residential unit developed on the property. (This land use typically includes apartments, duplexes, triplex etc. , but does not generally include condominiums, town-homes or mobilehome parks). Based on average population densities and size of the structure as compared to a typical single-family residential unit, multi-family residential parcels shall be proportionately assessed for the parcel's total number of residential units utilizing a sliding benefit scale. Although multi-family properties typically receive similar benefits to that of a single-family residential, it would not be reasonable to conclude that on a per unit basis, the benefits are equal. Studies have consistently shown that the average multi-family unit impacts infrastructure approximately 75% as much as a single-family residence (Sample Sources: Institute of Transportation Engineers Informational Report Trip Generation, Fifth Edition; Metcalf and Eddy, Wastewater Engineering Treatment, Disposal, Reuse, Third Edition). These various studies indicate that most public improvements and infrastructure are utilized and impacted at reduced levels by multi-family residential units and a similar reduction in proportional benefit is appropriate. Furthermore,it is also reasonable to conclude that as the density (number of units) increases, the proportional benefit per unit tends to decline because the unit size and people per unit usually decreases. Based on these considerations and the improvements provided by this District, an appropriate allocation of special benefit for multi-family residential properties as compared to a single-family residential is best represented by the following special benefit assignment: 0.75 EBU per unit for the first 50 units;0.50 EBU per unit for units 51 through 100;and 0.25 EBU per unit for all remaining units. MuniFinancial Page 11 109 Engineer's Report City of Atascadero Landscaping and Lighting District No. 01 (Apple Valley) Condominium/Town-home Units — Condominiums and town-homes tend to share attributes of both a single-family residential and multi-family residential properties and for this reason are identified as a separate land use classification. Like most single- family residential properties, these properties are not usually considered rental property and generally, the County assigns each unit a separate APN or assessment number. However, condominiums and town-homes often have similarities to multi-family residential properties in that they are generally zoned medium to high density and in some cases may involve multiple units on a single APN. Inconsideration of these factors it has been determined that an appropriate allocation of special benefit for condominiums, town-homes and similar residential properties is best represented by an assignment of 0.75 EBU per unit regardless of whether each unit is assigned an individual APN or there are multiple units assigned to an APN. (There is no adjustment for parcels with more than five units). Planned-Residential Development — This land use is defined as any property for which a tentative or final tract map has been filed and approved (a specific number of residential lots and units has been identified) and the property is expected to be subdivided within the fiscal year or is part of the overall improvement and development plan for the District. This land use classification often times involves more than a single parcel (e.g. the approved tract map encompasses more than a single APN). Each parcel that is part of the approved tract map shall be assessed proportionately for the proposed or estimated residential type and units to be developed on that parcel as part of the approved tract map. Accordingly, each parcel is assigned an appropriate number of benefit units that reflects the development of that property at build-out. (The EBU assigned to each parcel shall represent the combination of single-family, condominium, multi-family units to be developed). Vacant Residential — This land use is defined as property currently zoned for residential development, but a tentative or final tract map for the property has not yet been approved. Based upon the opinions of professional appraisers who appraise market property values for real estate in California, the land value portion of a property typically ranges from 20 to 30 percent of the total value of a developed residential property (the average is about 25 percent).Although the assessed value of an individual property is not a direct reflection of the property's special benefit, this general correlation between land value and structure value does provide a reasonable basis for apportioning special benefit for vacant residential properties. Utilizing this twenty-five percent (25%) apportionment and the number of single-family residential units typically developed per acre of land (an average of 4 residential units per acre) and Equivalent Benefit Unit of 1.0 EBU per acre (4units per acre x 25%) is derived and presents an appropriate apportionment of special benefit for vacant residential properties. Recognizing that the full and timely utilization of vacant property is reduced as the size of the property increases, it has been determined that the maximum EBU assigned to a vacant residential parcel shall not MuniFinancial Page 12 110 Engineer's Report City of Atascadero Landscaping and Lighting District No. 01 (Apple Valley) exceed 25.0 EBU (parcels in excess of 25 acres are assigned 25.0 EBU). Parcels less than one acre shall be assigned a minimum of 1.0 EBU (similar to a vacant lot within a residential tract). Exempt Parcels — This land use identifies properties that are not assessed and are assigned 0.00 EBU. This land use classification may include but is not limited to: • Lots or parcels identified as public streets and other roadways (typically not assigned an APN by the County); • Dedicated public easements including open space areas, utility rights-of-way, greenbelts, parkways, parks or other publicly owned properties that are part of the District improvements or may provide other benefits to private properties within the District.; • Private properties that cannot be developed independently from an adjacent property, such as common areas, sliver parcels or bifurcated lots or properties with very restrictive development use; These types of parcels are considered to receive little or no benefit from the improvements and are therefore exempted from assessment, but shall be reviewed annually by the assessment engineer to confirm the parcels current development status. Government owned properties or public properties are not necessarily exempt properties and shall be subject to special benefit assessment unless it qualifies for an exempt status. Special Cases — In many districts where multiple land use classifications are involved, there is usually one or more properties that the standard land use classifications does not accurately identify the special benefits received from the improvements. For example, a parcel may be identified as a Vacant Residential property, however only a small percentage of the parcel's total acreage can actually be developed. In this case, an appropriate calculation would be based on the net acreage that can be utilized rather than the gross acreage of the parcel. The following table provides a summary of land use classifications and the Equivalent Benefit Unit calculations previously outlined. MuniFinancial Page 13 Engineer's Report City of Atascadero Landscaping and Lighting District No. 01 (Apple Valley) Land Uses and Equivalent Benefit Units Equivalent Property Type Benefit Units Multiplier Single-family Residential 1.000 per Unit/Lot/Parcel 0.750 per Unit for the First 50 Units Multi-family Residential 0.500 per Unit for Units 51-100 0.250 per Unit for all remaining units Condominium/Town-home Units 0.750 per Unit 1.000 per Planned SF-Residential Lot 0.750 per Planned Condominium Planned-Residential Development 0.750 per Unit for the First 50 Units 0.500 per Unit for Units 51-100 0.250 per Unit for all remaining units Vacant Residential Land 1.000 per Acre Exempt Parcels 0.000 per Parcel The following formula is used to calculate each parcel's EBU (proportional benefit). Parcel Type EBU x Acres or Units = Parcel EBU The total number of Equivalent Benefit Units (EBU's) is the sum of all individual EBU's applied to parcels that receive special benefit from the improvements. An assessment amount per EBU (Assessment Rate) for the improvements is established by taking the total cost of the improvements and dividing that amount by the total number of EBU's of all parcels benefiting from the improvements. This Rate is then applied back to each parcel's individual EBU to determine the parcel's proportionate benefit and assessment obligation for the improvements. Total Balance to Levy / Total EBU = Levy per EBU Levy per EBU x Parcel EBU = Parcel Levy Amount D. Assessment Range Formula Any new or increased assessment requires certain noticing and meeting requirements by law. Prior to the passage of Proposition 218 (California Constitution Articles XIIIC and XIIID), legislative changes in the Brown Act defined a "new or increased assessment" to exclude certain conditions. These conditions included "any assessment that does not exceed an assessment formula or range of assessments previously adopted by the agency or approved MuniFinancial Page 14 112 Engineer's Report City of Atascadero Landscaping and Lighting District No. 01 (Apple Valley) by the voters in the area where the assessment is unposed." This definition and conditions were later confirmed through Senate Bill 919 (Proposition 218 implementing legislation). The purpose of establishing an Assessment Range Formula is to provide for reasonable increases and inflationary adjustment to annual assessments without requiring costly noticing and mailing procedures, which could add to the District costs and assessments. As part of the District formation, the notice and assessment ballots presented to the property owners for approval, includes a maximum assessment amount for fiscal year 2005/2006 (initial maximum assessment),identification of the corresponding maximum assessment rate and a summary of the Assessment Range Formula described herein. The Assessment Range Formula for this District shall be applied to all future assessments and is generally defined: • If the proposed annual assessment (levy per EBU) for the upcoming fiscal year is less than or equal to the adjusted Maximum Assessment Rate, then the proposed annual assessment is not considered an increased assessment. • The Maximum Assessment Rate is equal to the (Initial) Maximum Assessment Rate established for fiscal year 2005/2006 adjusted annually by the greater of, three percent (3%) or the annual percentage change in the Consumer Price Index (CPI) of"All Urban Consumers" for the San Francisco-Oakland-San Jose Area. Beginning in the second fiscal year(fiscal year 2006/2007) and each fiscal year thereafter,the Maximum Assessment Rate will be recalculated and a new Maximum Assessment Rate established for the fiscal year utilizing the Assessment Range Formula described above. The Maximum Assessment Rate shall be calculated independent of the District's annual budget and proposed assessment. The annual percentage change in CPI shall be based on available data provided by the U.S. Department of Labor;Bureau of Labor Statistics at the time the annual Report is prepared. Should the Bureau of Labor Statistics revise such index or discontinue the preparation of such index, the City shall use the revised index or comparable system as approved by the City Council for determining fluctuations in the cost of living. Any proposed annual assessment (rate per EBU) less than or equal to the calculated (adjusted) Maximum Assessment Rate is not considered an increased assessment,even if the proposed assessment is significantly greater than the assessment applied in the prior fiscal year. Likewise, modifications to the method of apportionment that increases the proportional special benefit assigned to a particular land use classification would be considered an increased assessment. Conversely, reductions in the proportional special benefit assigned to a land use classifications is permitted. Changes in land use or size of an individual property resulting in an assessment increase, is not considered an increased assessment. To impose a new or increased assessment other than the annual inflationary adjustment provided by the preceding Assessment Range Formula, the City must comply with the provisions of the California Constitution Article XIIID Section 4c, that requires a public MuniFinancial Page 15 113 Engineer's Report City of Atascadero Landscaping and Lighting District No. 01 (Apple Valley) hearing and certain protest procedures including mailed notice of the public hearing and property owner protest balloting. Property owners through the balloting process must approve a proposed new or increased assessment before such an assessment may be imposed. As part of the District formation, property owners shall be balloted for a special benefit assessment necessary for the annual operation and maintenance of the District improvements. Although this Report establishes an assessment amount for each of the existing properties within the District and this amount is used to determine if majority protest exists in the ballot tabulation, these assessments are based on the initial maximum assessment rate and method of apportionment described in this Report. The notice and ballot presented to the property owners identifies the initial maximum assessment rate and the Assessment Range Formula described above and is the basis upon which the property owners cast their ballots. MuniFinancial Page 16 114 Engineer's Report City of Atascadero Landscaping and Lighting District No. 01 (Apple Valley) PART III DISTRICT BUDGET Costs Special First Total Not Benefit Year's BUDGET ITEM Budget Assessed Assessment Assessment ANNUAL MAINTENANCE(DIRECT COSTS) Parkway Maintenance 14,150 - 14,150 14,150 Slope Maintenance 4,648 2,324 2,324 2,324 Median Maintenance 5,060 - 5,060 5,060 Park&Open Space Maintenance 42,466 20,438 22,029 22,029 Tree Maintenance 1,421 133 1,289 1,289 Landscape Utilities(Water/Electricity) 20,145 7,339 12,806 12,806 Streetlight Maintenance and Energy 388 - 388 388 Miscellenaous Materials&Equipment 1,696 572 1,123 1,123 Total Landscaping&Lighting Maintenance 89,974 30,806 59,169 59,169 REPLACEMENT/REHABILITATION(CIP) Parkway Rehabilitaion/Replacement 762 - 762 762 Slope Rehabilitaion/Replacement 219 110 110 110 Median Rehabilitaion/Replacement 238 - 238 238 Park&Open Space Rehabilitaion/Replacement 3,364 1,625 1,739 1,739 Tree Rehabilitaion/Replacement 2,218 185 2,033 2,033 Streetlight Rehabilitaion/Replacement 38 - 38 38 Total Capital Improvement/Rehabilitation Budget 6,839 1,920 4,920 4,920 ADMINISTRATION City Administration Overhead 7,198 2,464 4,734 4,734 Professional Fees for Admin 3,570 - 3,570 3,570 County Administration Fee 41 - 41 41 Miscellaneous Administration Expenses 108 25 83 83 Total Administration 10,917 2,489 8,4288,428 Total Costs&Expenses 107,730 35,215 72,517 72,517 LEVY ADJUSTMENTS Reserve Fund Collection/(Transfer) 3,626 - 3,626 3,626 Revenues from Other Sources(Contribution) (35,215) (35,215) - - General Benefit(Contribution) - Total Levy Adjustments (31,589) (35,215) 3,626 3,626 BALANCE TO LEVY $76,143 $0 $76,143 $76,143 Total Parcels 72 5 Parcels Levied 70 4 Total EBU 70.00 70.00 Levy per EBU $ 1,087.76 $ 1,087.76 Maximum Levy per EBU $ 1,087.76 $ 1,087.76 FUND BALANCE INFORMATION Estimated Ending Reserve Balance 3,626 3,626 3,626 Estimated Ending CIP Balance 4,920 4,920 4,920 Estimated Ending Fund Balance(Reserves&CIP) $ 8,546 $ 8,546 $ 8,546 The proposed Maximum Assessment per EBU shown above is based on the cost of providing the District improvements and does not include any other assessments or charges imposed on the properties.Although all the improvement and associated costs have been identified as 100% special benefit, per the development agreements for Tract 2495,the City will pay for up to 50%of the park&open space maintenance costs associated with the area south of Ramon Road.This is reflected in the budget as a contribution from other sources. MuniFinancial Page 17 115 Engineer's Report City of Atascadero Landscaping and Lighting District No.01 (Apple Valley) PART IV - DISTRICT DIAGRAMS The parcels within the Landscaping and Lighting District No. 01 (Apple Valley) consist of all lots, parcels and subdivisions of land located in the planned residential development known as Apple Valley, Tract 2495. The District covers approximately twenty-eight acres (28.35 acres) in the northern portion of the City of Atascadero. The following District Diagram is based on the San Luis Obispo County Assessor's Maps and the San Luis Obispo County Assessor's information and identifies all the parcels of land within the proposed District, as the same existed at the time this Report was prepared. The combination of this map and the Assessment Roll contained in this Report constitu4e the District Assessment Diagram. The maximum assessment rate, assessment range formula and the proposed assessment amount for each of the existing parcels within the District as described herein, shall be presented to the property owners of record for approval or protest in accordance with the provisions of the California Constitution. MuniFinancial Page 18 , 116 0 Wz � a wfillG ' 0 p o wz � Q q z �' cWn a O CD ,, Q Z ¢ wPr cn c7 Q � vin «, '40 We a . 117 Engineer's Report City of Atascadero Landscaping and Lighting District No. 01 (Apple Valley) PART V - ASSESSMENT ROLL Parcel identification for each lot or parcel within the District is based on the Assessment Diagram presented herein and is based on available parcel maps and property data from the San Luis Obispo County Assessor's Office at the time the Engineer's Report was prepared. A listing of the proposed lots and parcels to be assessed within this District along with the assessment amounts is provided herein. Non-assessable lots or parcels may include, but are not limited to public streets and other roadways (typically not assigned an APN by the County); dedicated public easements, open space areas,right- of-ways,common areas;landlocked parcels,small parcels vacated by the County,bifurcated lots,and any other property that can not be developed or has little or no value. These types of parcels are considered to receive little or no benefit from the improvements and are therefore exempted from assessment. If any parcel submitted for collection is identified by the County Auditor/Controller to be an invalid parcel number for the fiscal year, a corrected parcel number and/or new parcel numbers will be identified and resubmitted to the County Auditor/Controller. The assessment amount to be levied and collected for the resubmitted parcel or parcels shall be based on the method of apportionment and assessment rate described in this Report as approved by the City Council. Therefore,if a single parcel is subdivided to multiple parcels, the assessment amount applied to each of the new parcels shall be recalculated and applied according to the approved method of apportionment and assessment rate rather than a proportionate share of the original assessment. The following is a list of the parcels and proposed assessment amounts for each of the parcels within the District as determined by the assessment rates and method of apportionment described herein: Assessor's Proposed First Parcel Maximum Year's Lot Number Designated Land Use EBU Assessment Assessment 1 049-191-002 Planned-Residential Development 19.00 $20,667.44 $20,667.44 2 049-191-026 Planned-Residential Development 13.00 $14,140.88 $14,140.88 3 049-191-027 Planned-Residential Development 21.00 $22,842.96 $22,842.96 4 049-191-028 Planned-Residential Development - $0.00 $0.00 5 049-191-030 Planned-Residential Development 17.00 $18,491.92 $18,491.92 Totals 5 70.00 $76,143.20 $76,143.20 MuniFinancial Page 20 118 ITEM NUMBER: B—1(b)(e) DATE: 05/24/05 XQ 0 1978 Atascadero City Council Staff Report - Administrative Services Department Woodridge (Las Lomas) Assessment Districts RECOMMENDATIONS: Council: 1. Conduct the Public Hearing for the Woodridge (Las Lomas) Assessment Districts, and direct the City Clerk to collect and count the ballots. (Council to recess until ballots are counted.) 2. Direct City Clerk to announce the results of the election; and, 0 3. Adopt Draft Resolution A, declaring the results of the property owner protest ballot proceeding for Street and Storm Drain Maintenance District No. 02 (Woodridge/Las Lomas) and approving certain related actions; and, 4. Adopt Draft Resolution B amending and/or approving the Engineer's Report regarding the formation of Street and Storm Drain Maintenance District No. 02 (Woodridge/Las Lomas), and the levy and collection of annual assessments related thereto, commencing in fiscal year 2005/2006; and, 5. Adopt Draft Resolution C confirming the formation of Street and Storm Drain Maintenance District No. 02 (Woodridge/Las Lomas) and ordering the levy and collection of assessments for fiscal year 2005/2006; and, 6. Adopt Draft Resolution D declaring the results of the property owner protest ballot proceeding for Landscaping and Lighting District No. 02 (Woodridge/Las Lomas) and approving certain related actions; and, 7. Adopt Draft Resolution E amending and/or approving the Engineer's Report regarding the formation of Landscaping and Lighting District No. 02 (Woodridge/Las Lomas); and the levy and collection of annual assessments related thereto commencing in fiscal year 2005/2006; and, 8. Adopt Draft Resolution F confirming the formation of Landscaping and Lighting District No. 02 (Woodridge/Las Lomas) and ordering the levy and collection of assessments for fiscal year 2005/2006. 119 ITEM NUMBER: B-1(b)(e) DATE: 05/24/05 REPORT-IN-BRIEF: On April 12, 2005 the Council adopted resolutions declaring its intention and initiating proceedings to form a Landscape and Lighting District and a Benefit Assessment District for the area generally known as Woodridge/Las Lomas. (The name of this subdivision was recently changed from Woodridge to Las Lomas.) This Public Hearing provides an opportunity for the City Council to form the districts. The first step is to call for an election, then the clerk will report the results of the election and if the ballot measures pass, adopt three resolutions for each district. History On September 23, 2003 Council approved the Woodridge/Las Lomas planned development and tract map. As part of that map, Woodridge/Las Lomas was conditioned as follows: 28. Project Road Maintenance and Emergency Services Funding: (Referenced from Mitigation Measure 14) The emergency services and road maintenance costs of the project shall be 100% funded by the project in perpetuity. The service and maintenance cost may be funded through a benefit assessment district or other mechanism established by the developer subject to City approval. The funding mechanism must be in place prior to or concurrently with acceptance of the any final maps. The funding mechanism shall be approved by the City Attorney,City Engineer and Administrative Services Director prior to acceptance of any final map. a) All streets, sidewalks, streetlights, street signs, roads, emergency access roads, emergency access gates within the project. b) All Atascadero Police Department service costs to the project. c)All Atascadero Fire Department service costs to the project. 29. Project Landscape Maintenance Requirement: (Referenced from Mitigation Measure 14) yThe following landscape maintenance items are the 100% responsibility of the project to maintain in perpetuity. An engineer's report quantifying the maintenance costs shall be prepared to determine actual maintenance costs. The facilities may be maintained through a homeowners association, assessment district, benefit assessment district, landscaping and lighting district, or other mechanism to fund and perform short and long term maintenance.The funding mechanism must be in place prior to or concurrently with acceptance of the any final maps.The funding mechanism shall be approved by the City Attorney, City Engineer and Administrative Services Director prior to acceptance of any final map. a)All parks,trails, recreational facilities and like facilities. b)All open space and native tree preservation areas. c)All drainage facilities and detention basins. d) All common landscaping areas, street trees, medians, parkway planters, manufacture slopes outside private yards,and other similar facilities. 120 ITEM NUMBER: B —1(b)(e) DATE: 05/24/05 Woodridge/Las Lomas developers are meeting this condition (with the exception of the public safety component) through the formation special districts. (The public safety component of this condition will be addressed through the formation of a community facilities district, which is a separate process/staff report from the maintenance districts addressed here.) The formation of the Districts will allow the City to levy specific taxes upon each of the properties within the District (Woodridge/Las Lomas). Current assessment laws require the formation of two separate districts for maintaining the improvements specified under the condition for development cited above. The first is a Street and Storm Drain Benefit Assessment District, which will provide funding and future routine maintenance of the streets, storm drains, landscaping, lighting, sidewalks and park facilities in these subdivisions. The second is a Landscape and Lighting h District which g ch will provide funding and maintenance of street trees, .open space, park area, medians, walkways, paths and other landscape and lighting improvements within the subdivision. Current law does not allow assessments for the long-term replacement of the streets and storm drains; therefore, amounts will not be collected for this purpose. Because long-term street maintenance is a condition of this project at the time a major street replacement/rehabilitation becomes necessary, the burden of this cost will be borne by the residents of the District. The California Constitution Articles XIIIC and XIIID (Proposition 218), require that a notice of the proposed assessment and ballot be mailed to the recorded owner of each parcel on which an assessment is imposed not less than 45 days prior to the public hearing. The Developer is the sole owner of the property, and has submitted a signed petition waiving his rights to the 45-day notice period. At the conclusion of the public hearing, all returned ballots will be opened and tabulated. If the property owner approves the proposed assessment, the City Council will then adopt the following necessary resolutions to form the Districts and levy the first annual assessments. There are three resolutions for each district (a total of six resolutions in all) that must be passed, in order to complete formation of the assessment districts. The first resolutions (Draft Resolutions A & D) declare the results of the property owner protest ballot. The second resolutions (Draft Resolutions B & E) amend and/or approve the Final Engineer's Report. Assessment district law requires that the engineer's report calculate how much benefit is derived by each unit from the improvements and how much general benefit there is to the entire City from the improvements. In the case of Woodridge, the engineer determined that all of the improvements, with the exception of the open space, provide 100% benefit to the residents of Woodridge and that there is no general benefit to the remainder of the City. As for the Open Space easement, the engineer has determined that there is some general benefit to citizens of Atascadero, and that 25% of the cost of maintaining this open space "shall be allocated as general benefit and not assessed as part of the District's special benefit assessments." Based on the Engineers Report, each unit will be assessed the following amounts annually. 121 ITEM NUMBER: B—1(b)(e) DATE: 05/24/05 Property Type Landscpe 8�` Streets and Storm Li htin Assessment Dram.Maintanance Single-family Residential $1,236.62 $497.98 Condominium /Town Home Units $927.47 $373.49 Multi-family Residential The first 50 Units $927.47 $373.49 Units 51-100 $618.31 $248.99 All remaining units $309.16 $124.50 Since the improvements will not be completed for maintenance prior to July 2005, the 2005/2006 assessment amount will be less than the amounts listed above. Please see page 17 of the Landscape & Lighting District Engineer's Report and page 18 of the Street and Storm Drain Maintenance District Engineer's Report for the first year's assessment amounts. Over time, as the cost of maintenance of the improvements goes up, the assessments can be increased but only by the greatest of 3% annually or the annual CPI. Conversely, if the cost to maintain the improvements is lower than expected, Council can set future annual assessments at an amount less than maximum. The last resolutions tonight (Draft Resolutions C & F) confirm the formation of the districts and order the levy and collection of the assessments for fiscal year 2005/2006. FISCAL IMPACT: Annual assessments for 2005/2006 will total $39,629 for road/drainage system maintenance and $89,618 for landscape and lighting maintenance. Future year's assessments will total $115,408 for road/drainage system maintenance and $286,587 for landscape and lighting maintenance. These amounts will be assessed to the owner(s) of parcels in Woodridge/Las Lomas. There is no fiscal impact to general residents within the City. ALTERNATIVES: Require the developer to establish a homeowners association for the maintenance of the improvements. ATTACHMENTS: 1. Draft Resolution A - declaring the results of the property owner protest ballot proceeding for Street and Storm Drain Maintenance District No. 02 (Woodridge/Las Lomas) and approving certain related actions. 122 ITEM NUMBER: B—1(b)(e) DATE: 05/24/05 2. Draft Resolution B - amending and/or approving the Engineer's Report regarding the formation of Street and Storm Drain Maintenance District No. 02 (Woodridge/Las Lomas), and the levy and collection of annual assessments related thereto, commencing in fiscal year 2005/2006 3. Draft Resolution C - confirming the formation of Street and Storm Drain Maintenance District No. 02 (Woodridge/Las Lomas) and ordering the levy and collection of assessments for fiscal year 2005/2006. 4. Engineer's Report- for the formation of Street and Storm Drain Benefit Assessment District No. 02 — Woodridge/Las Lomas 5. Draft Resolution D - declaring the results of the property owner protest ballot proceeding for Landscaping and Lighting District No. 02 (Woodridge/Las Lomas) and approving certain related actions. 6. Draft Resolution E - amending and/or approving the Engineer's Report regarding the formation of Landscaping and Lighting District No. 02 (Woodridge/Las Lomas); and the levy and collection of annual assessments related thereto commencing in fiscal year 2005/2006. 7. Draft Resolution F- confirming the formation of Landscaping and Lighting District No. 02 (Woodridge/Las Lomas) and ordering the levy and collection of assessments for fiscal year 2005/2006. 8. Engineer's Report- for the formation of Landscaping and Lighting District No. 02 —Woodridge/Las Lomas 123 DRAFT RESOLUTION A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ATASCADERO, CALIFORNIA, DECLARING THE RESULTS OF THE PROPERTY OWNER PROTEST BALLOT PROCEEDING FOR STREET AND STORM DRAIN MAINTENANCE DISTRICT NO. 02 (WOODRIDGE/LAS LOMAS) AND APPROVING CERTAIN RELATED ACTIONS WHEREAS, the City Council of the City of Atascadero, California (hereafter referred to as "City Council") called and duly held a property owner protest proceeding for Street and Storm Drain Maintenance District No. 02 (Woodridge/Las Lomas) (hereafter referred to as "District") pursuant to the provisions of the Benefit Assessment Act of 1982, Chapter 6.4 of the California Government Code, beginning with Section 54703 (hereafter referred to as the "Act") and the California Constitution Articles XII1C and XMD, for the purpose of presenting to the qualified property owners within the District the annual levy of assessments for the costs and expenses related to the ongoing operation, maintenance and servicing of local street right-of-way improvements and storm drain facilities installed in conjunction with the development of properties within the residential subdivision known as Woodridge (Las Lomas)Tract 225-1; and, WHEREAS, the landowners of record within the District as of the close of the Public Hearing held on May 24,. 2005 did cast their ballots, weighted by the proportional financial obligation of each ballot,the results of which are illustrated below: Yes: $ No: $ NOW,THEREFORE,BE IT RESOLVED,by the City Council of the City of Atascadero SECTION 1. The above recitals are true and correct. SECTION 2. The results of the tabulation of the valid property owner protest ballots returned by the property owners of record within said District, prior to the conclusion of the Public Hearing and property owner protest proceeding held for the District on May 24, 2005, is hereby confirmed and made public record. 0 124 Draft Resolution A Page Two SECTION 3. The tabulation of the valid property owner protest ballots returned by the property owners within said District indicates that majority protest of the assessment does not exist, and the City Council is authorized to take the necessary steps to levy the assessments as approved. SECTION 4. The City Clerk is hereby directed to enter this Resolution on the minutes of the City Council, which shall constitute the official declaration of the result of such property owner protest proceeding. SECTION 5. This Resolution shall become effective immediately upon its adoption. SECTION 6. The City Clerk shall certify the adoption of this Resolution. On motion by Council Member and seconded by Council Member ,the foregoing Resolution is hereby adopted in its entirety on the following roll call vote: AYES: NOES: ABSENT: ADOPTED: CITY OF ATASCADERO By: Wendy Scalise, Mayor Attest: Marcia McClure Torgerson, C.M.C.,City Clerk APPROVED AS TO FORM: Patrick L. Enright, City Attorney 125 DRAFT RESOLUTION B RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ATASCADERO, CALIFORNIA, AMENDING AND/OR APPROVING THE ENGINEER'S REPORT REGARDING THE FORMATION OF STREET AND STORM DRAIN MAINTENANCE DISTRICT NO. 02 (WOODRIDGE/LAS LOMAS), AND THE LEVY AND COLLECTION OF ANNUAL ASSESSMENTS RELATED THERETO COMMENCING IN FISCAL YEAR 2005/2006 WHEREAS, The City Council of the City of Atascadero, California (hereafter referred to as "City Council"), pursuant to the provisions the Benefit Assessment Act of 1982, Chapter 6.4 of the California Government Code, beginning with Section 54703 (hereafter referred to as the "Act"), did by previous Resolution order the Engineer, MuniFinancial, to prepare and file a report in accordance with the Act in connection with the formation of Street and Storm Drain Maintenance District No. 02 (Woodridge/Las Lomas) (hereafter referred to as the"District") and the proposed levy and collection of assessments related thereto commencing with fiscal year 2005/2006,said fiscal year starting July 1, 2005 and ending June 30,2006; and, WHEREAS, The Engineer has prepared and filed with the City Clerk of the City of Atascadero and the City Clerk has presented to the City Council such report entitled "Engineer's Report for the Formation of Street and Storm Drain Maintenance District No. 02 (Woodridge/Las Lomas), fiscal year 2005/2006" (hereafter referred to as "Engineer's Report") in accordance with the Act; and, WHEREAS, The City Council has carefully examined and reviewed the Engineer's Report as presented, and is satisfied with each and all of the items and documents as set forth therein, and finds that the levy of assessments has been spread in accordance with the special benefits received from the improvements, operation, maintenance and services to be performed, as set forth in said Engineer's Report. NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Atascadero SECTION 1. The above recitals are all true and correct. SECTION 2. The Engineer's Report as presented, consists of the following: a. Plans and specifications that describe the District and Improvements. 126 Draft Resolution B Page Two b. Method of Apportionment that outlines the special benefit conferred on properties within the District from the improvements and the calculations used to establish each parcel's proportional special benefit assessment as well as a description of the assessment range formula that establishes the maximum assessment rate in subsequent fiscal years. c. The Budget that outlines the costs and expenses to service, and maintain the improvements including incidental expenses to operate the District. d. An Assessment Diagram that identifies the boundaries of the District. e. An Assessment Roll containing each of the Assessor Parcel Numbers that comprise the District and the proportional maximum assessment and first year's assessment commencing fiscal year 2005/2006. SECTION 3. The Engineer's Report as presented, is hereby approved (as submitted or amended by direction of this City Council), and is ordered to be filed in the Office of the City Clerk as a permanent record and to remain open to public inspection. SECTION 4. The City Clerk shall certify to the passage and adoption of this Resolution and the minutes of this meeting shall so reflect the adoption and approval of the Engineer's Report. 127 Draft Resolution B Page Three On motion by Council Member and seconded by Council Member ,the foregoing Resolution is hereby adopted in its entirety on the following roll call vote: AYES NOES: ABSENT: ADOPTED: CITY OF ATASCADERO By: Wendy Scalise, Mayor Attest: Marcia McClure Torgerson, C.M.C., City Clerk APPROVED AS TO FORM: Patrick L. Enright, City Attorney 128 DRAFT RESOLUTION C RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ATASCADERO, CALIFORNIA CONFIRMING THE FORMATION OF STREET AND STORM DRAIN MAINTENANCE DISTRICT NO. 02 (WOODRIDGE/LAS LOMAS) AND ORDERING THE LEVY AND COLLECTION OF ASSESSMENTS FOR FISCAL YEAR 2005/2006 WHEREAS, The City Council of the City of Atascadero, California (hereafter referred to as City Council)has by previous Resolutions initiated proceedings and declared its intention to form Street and Storm Drain Maintenance District No. 02 (Woodridge/Las Lomas) (hereafter referred to as the "District") and to levy special benefit assessments against parcels of land within the said District commencing with fiscal year 2005/2006, said fiscal year commencing July 1, 2005 and ending June 30, 2006; pursuant to the provisions of the Benefit Assessment Act of 1982, Chapter 6.4 of the California Government Code, beginning with Section 54703 (hereafter referred to as the "Act") to pay the costs and expenses of operation, maintenance, repair and servicing of local street right-of-way improvements and storm drain facilities related thereto; and, WHEREAS, The Engineer selected by the City Council has prepared and filed with the City Clerk, and the City Clerk has presented to the City Council an Engineer's Report in connection with the proposed formation and levy of special benefit assessments upon eligible parcels of land within the District, and the City Council did by previous Resolution adopt and approve said Engineer's Report;and, WHEREAS, The City Council desires to levy and collect assessments against parcels of land within the District for the fiscal year commencing July 1, 2005 and ending June 30, 2006, to pay the costs and expenses of operation, maintenance, repair and servicing of local street right-of- way improvements and storm drain facilities related thereto; and, WHEREAS, The City Council has conducted a property owner protest ballot proceeding for the District assessments proposed to be levied commencing fiscal year 2005/2006, and majority protest of the assessments described in the Engineer's Report did not exist pursuant to the provisions of the California State Constitution Article XlED. 129 Draft Resolution C Page Two NOW, THEREFORE,BE IT RESOLVED,by the City Council of the City of Atascadero SECTION 1. Following notice duly given, the City Council has held a full and fair Public Hearing regarding its Resolution approving the Engineer's Report prepared in connection therewith; the levy and collection of assessments, and considered all oral and written statements, protests and communications made or filed by interested persons. The City Council has determined that the property owners in accordance with the requirements of the California State Constitution, Article XIS have approved the assessments so presented. SECTION 2. Based upon its review (and amendments, as applicable) of the Engineer's Report, a copy of which has been presented to the City Council and which has been filed with the City Clerk,the City Council hereby finds and determines that: a. The land within District will receive special benefit by the operation, maintenance and servicing of improvements to be provided by the District. b. The District includes all of the lands receiving such special benefit. c. The net amount to be assessed upon the lands within the District is in accordance and apportioned by a formula and method which fairly distributes the net amount among all eligible parcels in proportion to the special benefit to be received by each parcel from the improvements and services for the fiscal year commencing July 1, 2005 and ending June 30, 2006. SECTION 3. The City Council hereby orders the proposed improvements to be made, which improvements are briefly described as the maintenance, operation, administration and servicing of the improvements that may include, but is not limited to local street right-of-way improvements and storm drain facilities within the District and all appurtenant facilities related thereto. SECTION 4. The maintenance, operation and servicing of improvements shall be performed pursuant to the Act and the County Auditor of San Luis Obispo County shall enter on the County Assessment Roll opposite each parcel of land the amount of levy, and such levies shall be collected at the same time and in the same manner as the County taxes are collected. After collection by the County, the net amount of the levy shall be paid to the City Treasurer. 130 Draft Resolution C Page Three SECTION 5. The City Treasurer shall deposit all money representing assessments collected by the County for the District to the credit of a fund for the Street and Storm Drain Maintenance District No. 02 (Woodridge/Las Lomas), and such money shall be expended only for the maintenance, operation and servicing of the improvements as described in the Engineers Report and generally described in Section 3 of this Resolution. SECTION 6. The adoption of this Resolution constitutes the formation of the District, the establishment of the maximum assessment rate described in the Engineer's Report and the levy of assessments for the fiscal year commencing July 1, 2005 and ending June 30, 2006. SECTION 7. The City Clerk is hereby authorized and directed to file the levy with the County Auditor upon adoption of this Resolution. 131 Draft Resolution C Page Four On motion by Council Member and seconded by Council Member ,the foregoing Resolution is hereby adopted in its entirety on the following roll call vote: AYES: NOES: ABSENT: ADOPTED: CITY OF ATASCADERO By: Wendy Scalise, Mayor Attest: Marcia McClure Torgerson, C.M.C., City Clerk APPROVED AS TO FORM: Patrick L. Enright, City Attorney 132 CITY OF ATASCADERO ENGINEER'S REPORT FOR THE FORMATION OF STREET AND STORM DRAIN MAINTENANCE DISTRICT NO. 02 (WOODRIDGE) FISCAL YEAR 2005/2006 F 3 A .. ATASCADERO STREET AND STORM DRAIN MAINTENANCE DISTRICT NO. 02 (WOODRIDGE) Intent Meeting: April 12, 2005 Public Hearing: May 24, 2005 a NWE RAuniFinancial Corporate Office Office Locations 27368 Via Industria Anaheim,CA Pensacola,FL Suite 110 Lancaster,CA Phoenix,AZ Temecula,CA 92590 Los Angeles Regional Office Sacramento,CA Tel: (909)587-3500 Oakland,CA Seattle,WA Tel: (800)755-MUNI(6864) Fax: (909)587-3510 www.muni.com 133 ENGINEER'S REPORT AFFIDAVIT Formation of the Atascadero Street and Storm Drain Maintenance District No. 02 (Woodridge) And establishment of Annual Assessments for said District The District includes all parcels of land within the residential subdivision known as Woodridge, Tract 2525-1 City of Atascadero, County of San Luis Obispo, State of California This Report and the enclosed budget, assessments, descriptions and diagrams outline the proposed formation of Street and Storm Drain Maintenance District No. 02 (Woodridge) and includes each lot, parcel, and subdivision of land within said District, as the same existed at the time of the passage of the Resolution of Intention. Reference is hereby made to the San Luis Obispo County Assessor's maps for a detailed description of the lines and dimensions of parcels within the District. The undersigned respectfully submits the enclosed Report as directed by the City Council. Dated this day of 12005, MuniFinancial Assessment Engineer On Behalf of the City of Atascadero - y By: Jim McGuire Senior Project Manager By: Richard Kopecky R. C. E. # 16742 134 TABLE OF CONTENTS INTRODUCTION...............................................................................................1 PART I —PLANS AND SPECIFICATIONS ......................................................5 A. Benefiting Properties within the District..........................................................5 B. Funding authorized by the 1982 Act..................................................................5 C. Description of Improvements and Services....................................................6 PART II —METHOD OF APPORTIONMENT...............................................10 A. General..........................................................................................................................10 B. Benefit Analysis.........................................................................................................10 C. Assessment Methodology......................................................................................11 D. Assessment Range Formula.................................................................................15 PART III — DISTRICT BUDGET .....................................................................18 PART IV — DISTRICT DIAGRAMS.................................................................19 PART V—ASSESSMENT ROLL.......................................................................21 135 Engineer's Report City of Atascadero Street and Storm Drain Maintenance District No.02 (Woodridge) INTRODUCTION Pursuant to the provisions of the Benefit Assessment Act of 1982, being Chapter 6.4 of the California Government Code, commencing with Section 54703 (hereafter referred to as the "1982 Act"), and in compliance with the substantive and procedural requirements of the California State Constitution Article XIIID (hereafter referred to as the "California Constitution"), the City Council of the City of Atascadero, County of San Luis Obispo, State of California(hereafter referred to as "City"), propose to form and levy special benefit assessments for the district designated as: Street and Storm Drain Maintenance District No. 02 (Woodridge) (hereafter referred to as "District"), which includes all lots and parcels of land within the residential subdivision known as Woodridge, Tract 2525-1 within the City limits of Atascadero. This Engineer's Report(hereafter referred to as "Report") has been prepared in connection with the formation of said District and the levy and collection of annual assessments related thereto commencing in fiscal year 2005/2006, as required pursuant to Article 4, Section 54716 of the 1982 Act. The City Council proposes to form the District, and levy and collect annual assessments on the County tax rolls to provide ongoing funding for the costs and expenses required to service and maintain the street and storm drain improvements and facilities associated with and resulting from the development of properties within the District. The improvements to be provided by the District and the assessments described herein are made pursuant to the 1982 Act and the substantive and procedural provisions of the California Constitution. This Report describes the District,the improvements,and the proposed assessments to be levied against properties in connection with the special benefits the properties will receive from the maintenance and servicing of the District improvements and facilities commencing in fiscal year 2005/2006. The formation of this District and the assessments described herein will provide a funding source (annual assessments) for the continued operation and maintenance of streets, storm drain system and appurtenant facilities installed in connection with the development of properties within the District. The improvements and assessments described in this Report are based on the planned development of properties within the District and represent an estimate of the direct expenditures, incidental expenses, and fund balances that will be necessary to maintain and service the streets and storm drain system that provides special benefits to properties within the District.The structure of the District (organization),the proposed improvements,the method of apportionment, and assessments described herein are based on current development plans and MuniFinancial Page 1 136 Engineer's Report City of Atascadero Street and Storm Drain Maintenance District No.02 (Woodridge) - n reference these plans and specifications are made art of specifications for Tract 2525 1, and byp p p this Report. The word "parcel," for the purposes of this Report, refers to an individual property assigned its own Assessor's Parcel Number (APN) by the San Luis Obispo County Assessor's Office. The San Luis Obispo County Auditor/Controller uses Assessor's Parcel Numbers and specific Fund Numbers to identify properties to be assessed on the tax roll for the special benefit assessments. As part of this District formation, the City of Atascadero shall conduct a Property Owner Protest Ballot proceeding for the proposed levy of a new assessment pursuant to the provisions of the California Constitution, Article XIIID Section 4. In conjunction with this ballot proceeding, the City Council will conduct a noticed public hearing to consider public testimonies, comments and written protests regarding the formation of the District and levy of assessments. Upon conclusion of the public hearing,property owner protest ballots received will be opened and tabulated to determine whether majority protest exists (ballots shall be weighted based on assessment amounts),and by resolution the City Council will confirm the results of the ballot tabulation. If majority protest exists, proceedings for the levy of District assessments shall be abandoned. If tabulation of the ballots indicates that majority protest does not exist for the proposed assessments and the assessment range formula presented and described herein, the City Council may approve the Report (as submitted or amended), order the formation of the District, and approve the levy and collection of assessments. In such case, the assessments for fiscal year 2005/2006 shall be submitted to the San Luis Obispo County Auditor/Controller for inclusion on the property tax roll for each parcel. Each subsequent fiscal year, a Report shall be prepared and presented to the City Council describing any changes to the improvements, proposed services, the annual budget or assessments for that fiscal year and the City Council shall hold a noticed public hearing regarding these matters prior to approving and ordering the proposed levy of assessments. If the proposed assessments for the District exceed the maximum assessment described herein (as approved by the property owners), the new or increased assessment must be confirmed through another property owner protest ballot proceeding before such an assessment may be imposed. It should be noted that an increased assessment to an individual property resulting from changes in development or land use does not constitute an increased assessment. This Report consists of five (5) parts: Part I Plans and Specifications: A description of the District boundaries and the proposed improvements associated with the District. The District is being formed with a single benefit zone encompassing all properties within the territory identified as the residential subdivision of Woodridge,Tract 2525-1. MuniFinancial Page 2 137 Engineer's Report City of Atascadero Street and Storm Drain Maintenance District No. 02 (Woodridge) Part II The Method of Apportionment: A discussion of benefits the improvements and services provide to properties within the District and the method of calculating each property's proportional special benefit and annual assessment. This section also identifies and outlines an Assessment Range Formula that provides for an annual adjustment to the maximum assessment rate that establishes limits on future assessments, but also provides for reasonable cost adjustments due to inflation without the added expense of additional property owner protest ballot proceedings. Part III The District Budget: An estimate of the annual costs to operate, maintain and service the street and storm drain improvements and facilities installed and constructed as part of the development of properties within the District. This budget includes an estimate of anticipated direct maintenance costs and incidental expenses including, but not limited to administration expenses and the collection of appropriate fund balances to establish an initial maximum assessment to be approved by the property owners of record. The special benefit assessments are based on the overall operation costs minus any costs that are considered general benefit. The proposed assessments for the first fiscal year (2005/2006), and each subsequent year shall be based on the estimated net annual cost of operating, maintaining and servicing the District improvements for that fiscal year as well as funds to be collected in installments to perform maintenance activities that cannot be reasonably collected in a single fiscal year's assessments. j The proposed maximum assessment (Rate per Equivalent Benefit Unit) identified in the budget of this Report establishes the initial maximum assessment for the District in fiscal year 2005/2006 and shall be adjusted annually by the Assessment Range Formula described in the method of apportionment. Part IV District-Diagram: A Diagram showing the exterior boundaries of the District is provided in this Report and includes all parcels that will receive special benefits from the improvements. Parcel identification, the lines and dimensions of each lot, parcel and subdivision of land within the District, are inclusive of all parcels as shown on the San Luis Obispo County Assessor's Parcel Maps as they existed at the time of the passage of the Resolution of Intention, and shall include all subsequent subdivisions, lot line adjustments or parcel changes therein. Reference is hereby made to the San Luis Obispo County Assessor's maps for a detailed description of the lines and dimensions of each lot and parcel of land within the District. Part V Assessment Roll: A listing of the proposed assessment amount to be presented to the property owners of record in the protest ballot proceedings required pursuant to the provisions of the California Constitution. The proposed assessment amount for each parcel is based on the parcel's proportional special benefit as outlined in the method of apportionment and the proposed initial maximum assessment rate. MuniFinancial Page 3 138 Engineer's Report City of Atascadero Street and Storm Drain Maintenance District No. 02(Woodridge) MuniFinancial Page 4 139 Engineer's Report City of Atascadero Street and Storm Drain Maintenance District No. 02 (Woodridge) PART I - PLANS AND SPECIFICATIONS A. Benefiting Properties within the District The territory within the District consists of all lots, parcels and subdivisions of land within the proposed residential subdivision known as the Woodridge, Tract 2525-1, which encompasses an area of land totaling approximately one hundred twenty-two acres (121.65 acres). This residential subdivision is planned to include one hundred forty-three (143) single- family residential units; thirty-five (35) condominium/senior housing units; and a single one hundred (100) unit multi-family residential project at build-out. The planned subdivision is situated in the southeast portion of the City of Atascadero and is generally located: • South and east of Halcon Road; • East of Highway 101 and El Camino Real • South and west of the Southern Pacific Railroad Tracks; and • North of Salinas Road and Santa Cruz Road The parcels within the District at the time this Report was prepared are identified by the San Luis Obispo County Assessor's Office as parcel numbers: 045-311-001; 045-401- 015; 045-401-016;045-411-001; and 045-412-001. B. Funding authorized by the 1982 Act As generally defined by the Benefit Assessment Act of 1982 and applicable to this District, the City may impose a benefit assessment to finance the maintenance and operation costs of the following services: 1) Drainage and Flood Control 2) Streets and Roads; In addition to imposing a benefit assessment for the annual maintenance and operation of the District improvements, the City may also authorize an assessment or utilize existing assessment revenues to finance the installation,construction or replacement of drainage and flood control facilities as well as the street and road improvements (with some limitations). While such activities are permitted under the 1982 Act, the budget and assessments for this District only provide for normal maintenance and operation of the improvements. Since most major rehabilitation/construction projects result from unforeseen damages, the extent and cost of such projects are not easily predicted and to accumulate funds as part of the normal annual assessments would not be reasonable. If such funding becomes necessary, MuniFinancial Page 5 140 Engineer's Report City of Atascadero Street and Storm Drain Maintenance District No. 02 (Woodridge) the City mayP resent a new or increased assessment to the property owners to support the projects. C. Description of Improvements and Services The purpose of this District is to fund the activities necessary to maintain and service the local streets and the drainage and flood control systems constructed and installed in connection with development of properties within the residential subdivision known as Woodridge, Tract 2525-1 pursuant to approved development plans and agreements. The improvements may consist of all or a portion of the public streets, drainage and flood control facilities associated with Tract 2525-1 and the maintenance of these improvements may include but are not limited to all materials, equipment, labor, and incidental expenses deemed necessary to keep these improvements in satisfactory condition. The maintenance of the improvements and related activities shall be funded entirely or partially through the District assessments.The District improvements and services are generally described as: • Street maintenance that may include but is not limited to the repair and servicing of street surfaces, curbs, gutters, bridges, driveway approaches, sidewalks, barricades, delineation, signage or other facilities within the public street right-of-ways installed in connection with the development of properties in Tract 2525-1 and that have been dedicated to the City; • Storm drain and flood control maintenance that may include but is not limited to inspection, repair and servicing of drainage basins, inlets, catch basins, manholes, outlets, drywells, pumps, filters and storm drain pipes installed in connection with the development of properties of Tract 2525-1 as well as any off-site improvements and facilities directly associated with the aforementioned infrastructure that is deemed necessary to service or protect the properties including waste water treatment; • All appurtenant, equipment, materials and service contracts related to the aforementioned improvements and facilities; . • Specifically excluded are those improvements or facilities: located on private property or common areas; that may be provided or maintained by an agency other than the City;that may be provide by another assessment or tax levied by the City;or that may be provided and maintained by a Homeowner's Association or similar entity. Detailed maps and descriptions of the location and extent of the specific improvements to be maintained by the District are on file in the Office of Public Works and by reference are made part of this Report. Those portions of the District improvements that may be identified as general benefit or will be funded in whole or in part by other revenue sources as part of the approved development agreements, will not be included as part of the District assessments. The net annual cost to provide and maintain the improvements determined to be of special benefit shall be allocated to each property in proportion to the special benefits received. MuniFinancial Page 6 141 Engineer's Report City of Atascadero Street and Storm Drain Maintenance District No.02 (Woodridge) Street Maintenance The street maintenance program may include, but is not limited to: the repair of potholes, cracks or other failures in the asphalt surface; repair or replacement of curbs, gutters, driveway approaches and sidewalks as required as part of maintaining the streets; repair or installation of street signs, barricades, fencing or other delineation; mechanized sweeping and cleaning of the streets and gutters; slurry sealing, overlays and re-striping of the street surfaces. The specific activities and timing of various street and road maintenance services shall be determined by the City's Public Works Department as necessary to extend the life of the streets or to improve traffic circulation and safety as available funding permits. Specifically the street improvements for this District are identified as: • Approximately 290,610 square feet of asphalt street surface located on the various interior streets identified as Calle Milano, Eliano Street, Via Cielo, Avion Road, Alcotan Lane,and Azor Lane; • Approximately 13,750 linear feet of curb and gutter along Calle Milano, Eliano Street,Via Cielo,Avion Road,Alcotan Lane,and Azor Lane; • Approximately 1,485 linear feet of curb and gutter in and around the median islands on Calle Milano and at Via Cielo; • Approximately 145 driveway approaches,45,264 square feet of sidewalks and various street signs within the District; • Specifically not included as part of the street maintenance program are the costs associated with major replacements or reconstruction. Although the District assessments will provide funding for regular maintenance and servicing of the improvements that will extend the useful life of the street improvements, the assessments are not intended to fund major replacements or reconstruction of the street surfaces or adjacent improvements such as curbs, gutters or driveway approaches. The costs of extensive replacement or reconstruction activities such as grinding and resurfacing of the asphalt; and replacement of curbs, gutters driveway approaches and sidewalks is significantly more than the amount that can reasonably be collected annually under the provisions of the 1982. When such repairs or activities are deemed necessary, the City will consider various financing options including new or increased assessments for property owner approval. The Public Works Department shall authorize all operational activities and maintenance of the public street and right-of-way improvements, facilities and services that may include,but are not limited to: • Regular street sweeping services necessary to control dirt and debris on street surfaces and gutters; • Annual inspection of street surface and repair of potholes and surface cracks as needed; 0 MuniFinancial Page 7 142 Engineer's Report City of Atascadero Street and Storm Drain Maintenance District No.02 (Woodridge) • Periodic slur or oven of street surfaces and driveway approaches (typically one or � y y pp (� y the other once every five years); • Periodic re-striping of traffic lanes, bike lanes, street parking areas, crosswalks and intersections (typically in conjunction with slurry or overly activities); • Graffiti abatement of public improvements within the street right-of-ways that are maintained by the District including but not limited to sandblasting, repainting and repair of fences,walls,barricades, sidewalks and signage as needed; • Annual inspection and periodic repair or replacement of decorative street-pavers as needed; • Annual inspection and minor repairs of curbs, gutters, driveway approaches and sidewalks including partial segment replacements as needed to ensure pedestrian and vehicle safety or the integrity of the street; • Annual inspection and periodic repair or rehabilitation of street signs and traffic control devices; • Annual inspection and repair of barricades, street-fencing, delineation or retaining walls within the street right-of-ways as needed; A portion of the services described above are not performed on an annual basis but rather on a periodic basis such as slurry sealing or overlaying the asphalt streets and the funds necessary for these activities are collected in installments as part of the annual assessments. The monies collected each year for these services will be accumulated in a special fund of the District (Reserve Fund or Capital Improvement Fund). The monies accumulated for these activities shall be spent when sufficient funds have been accumulated to perform the services deemed necessary by the City (approximately every five years). This process of y accumulating funds (installments) shall continue until such time the District is dissolved; or the City determines that such funding procedures require modification. Changes in the process of accumulating funds that would result in an increase to the annual assessment rate must be presented to the property owners for approval prior to imposing such an increase Storm Drain and Flood Control Maintenance The storm drain and flood control system associated with the District may include but is not limited to: drainage basins and bio-filters; channelways; storm drain inlets, catch basins, manholes, outlets; drywells, pumps, filters and pipes. The storm drain system to be maintained primarily involves on-site facilities (within the District boundaries) but may also include off-site improvements such as water treatment equipment, facilities or services mandated or required by Federal, State or County regulations for water pollution control. The annual assessments for this District are intended to support a storm drain and flood control maintenance program that will adequately regulate and control storm water runoff resulting from the development of properties within the District.This maintenance program MuniFinancial Page 8 143 Engineer's Report City of Atascadero Street and Storm Drain Maintenance District No. 02 (Woodridge) may include but is not limited to: inspection and documentation of the system; cleaning, servicing or repair of the facilities and equipment; and the partial replacement or rehabilitation of equipment and facilities.The storm drain and flood control system includes but is not limited to: • Approximately 175,550 square feet of drainage basin area; • Twenty-four (24) inlets, outlets and manholes located throughout Tract 2525-1; • Approximately 4,965 linear feet of storm drain pipe ranging from 18 inches to 36 inches in diameter; The Public Works Department shall authorize and schedule all operational activities and maintenance of the storm drain and storm water pollution treatment infrastructure, facilities and services that may include,but are not limited to: • Cleaning of storm drain inlets,catch basins,manholes and pipes as needed; • Stencil maintenance and documentation of facilities as required by Federal, State or County regulations; • Cleaning and landscape maintenance of the drainage basins, bio-filter areas or channelways as needed; • Debris removal and pest control in and around the storm drain facilities as needed; • Minor repairs and maintenance of the storm drain inlets, catch basins and outlets as needed; • Street sweeping services necessary to control debris and water flow for the storm drain system;and, • All operational costs related to NPDES compliance requirements. A portion of the services described above are not performed on an annual basis but rather on a periodic basis such as minor repairs to the storm drain inlets, catch basins and outlets, and the funds necessary for these activities are collected in installments as part of the annual assessments. The monies collected each year for these services will be accumulated in a special fund of the District (Reserve Fund or Capital Improvement Fund). The monies accumulated for these activities shall be spent as needed to perform the services deemed necessary by the City. This process of accumulating funds (installments) shall continue until such time the District is dissolved; or the City determines that such funding procedures require modification. Changes in the process of accumulating funds that would result in an increase to the annual assessment rate must be presented to the property owners for approval prior to imposing such an increase MuniFinancial Page 9 144 Engineer's Report City of Atascadero Street and Storm Drain Maintenance District No. 02(Woodridge) PART II - METHOD OF APPORTIONMENT A. General The 1982 Act permits the establishment of assessment districts by agencies for the purpose of providing for the maintenance, operation and servicing of drainage and flood control improvements as well as streets, roads and appurtenant facilities. The 1982 Act further requires that the cost of these improvements be levied according to benefit rather than assessed value: "The amount of the assessment imposed on any parcel of property shall be related to the benefit to the parcel which will be derived from the provision of the service". Furthermore: "The annual aggregate amount of the assessment shall not exceed the estimated annual cost of providing the service, except that the legislative body may, by resolution, determine that the estimated cost of work authorized ... is greater than can be conveniently raised from a single annual assessment and order that the estimated cost shall be raised by an assessment levied and collected in installments.... The revenue derived from the assessment shall not be used to pay the cost of any service other than the service for which the assessment was levied. The method of apportionment described in this Report for allocation of special benefit assessments utilizes commonly accepted engineering practices in compliance with the provisions of the 1982 Act and the California Constitution. The formulas used for calculating assessments reflects the composition of parcels within the District and the improvements and services provided, to fairly apportion the costs based on the special benefits to each parcel. ' B. Benefit Analysis Each of the proposed improvements and services,and the associated costs and assessments have been carefully reviewed, identified and allocated based on special benefit pursuant to the provisions of the 1982 Act and the California Constitution. The street and storm drain improvements associated with this District were necessary and essential requirements for the orderly development of the properties within the District to their full potential, consistent with the development plans and applicable portions of the City General Plan. As such the ongoing operation, servicing and maintenance of those improvements would otherwise be the direct financial obligation of each individual property owner. Since each parcel to be assessed within the District could not have been developed in the absence of these improvements and facilities, each parcel has a direct investment in the proper maintenance MuniFinancial Page 10 145 Engineer's Report City of Atascadero Street and Storm Drain Maintenance District No. 02 (Woodridge) of the improvements that is over and above any general benefits that may be conferred by such improvements and services. Clearly the ongoing maintenance and servicing of the District improvements is an integral part of the appearance, use and preservation of the properties within the District and such services to be funded by annual assessments confer a particular and distinct special benefit to those parcels. The proper maintenance of streets and appurtenant facilities allows individual parcels to be used to their fullest extent by ensuring the safe and efficient movement of people and goods to and from the benefiting properties Likewise, the maintenance and servicing of the storm drain system ensures proper water flow and control of excess water during periods of rain, which is essential to preservation and protection of private property. Together the maintenance and servicing of the streets and storm drain system contributes to a specific enhancement of each of the parcels within the District and the absence of adequate maintenance and servicing of the District improvements could eventually have a negative impact on properties within the District. Although the improvements may include public streets and storm drain facilities that connect to similar facilities outside the District boundaries,it is clear that the construction and installation of these improvements were only necessary for the development of properties within the District. As such, these improvements were not required nor necessarily desired by any properties or developments outside the District boundary and any public access or use of the improvements by others is incidental. Therefore, it has been determined that the ongoing maintenance, servicing and operation of the District improvements provide no measurable general benefit to properties outside the District or to the public at large, but clearly provide distinct and special benefits to properties within the District.Any improvement or portion thereof(particularly off-site storm drain facilities) that may be considered general benefit shall be funded by other revenue sources and not included as part of the special benefit assessments allocated to properties within this District. However, the costs associated with installation or improvement of any off-site facilities that benefit the parcels within this District as well as other properties (shared benefit) may be . allocated to the parcels within the District based on their proportional special benefit from such improvements. C. Assessment Methodology All costs associated with the improvements and services shall be fairly distributed among the parcels based upon the special benefit received by each parcel. Additionally, in compliance with the California Constitution Article XIIID Section 4, each parcel's assessment may not exceed the reasonable cost of the proportional special benefit conferred to that parcel. The benefit formula used to determine the assessment obligation is therefore based upon both the improvements that benefit the parcels within the District as well as the proposed land use of each property as compared to other parcels that benefit from those specific improvements. The method of apportionment established for this District and described herein,reflects the proportional special benefit each property receives from the improvements and services is MuniFinancial Page 11 146 Engineer's Report City of Atascadero Street and Storm Drain Maintenance District No. 02 (Woodridge) based on the actual or proposed land use of that parcel as compared to other properties within the District based on similarities and differences in parcel land use. Upon review of the improvements and the proposed development of properties within the District it has been determined that all residential properties receive similar special benefits from each of the improvements and services to be funded by annual assessments and a single zone of benefit is appropriate for the allocation of the assessments and proportional special benefit. Equivalent Benefit Units: To assess benefits equitably it is necessary to relate each property's proportional special benefits to the special benefits of all other properties within the District. The method of apportionment established for most districts formed under the 1982 Benefit Act utilizes a weighted method of apportionment known as an Equivalent Benefit Unit (EBU) methodology that uses the single-family home site as the basic unit of assessment. A single- family home site equals one Equivalent Benefit Unit (EBU) and all other land uses are converted to a weighted EBU based on an assessment formula that equates the property's specific development status, type of development (land use), and size of the property, as compared to a single-family home site. Although the Equivalent Benefit Unit method of apportioning special benefit is most commonly used and applied to districts that have a wide range of land use classifications (residential and non-residential use), this District is comprised of only residential properties and the following apportionment analysis of special benefit addresses only residential land uses. Not all land use types described in the following are necessarily applicable to the development of properties within this District, but are presented for comparison purposes to support the proportional special benefit applied to those land use types within the District. EBU Application by Land Use: Single-family Residential —This land use is defined as a fully subdivided residential home site with or without a structure. This land use is assessed 1.00 EBU per lot or parcel. This is the base value that all other properties are compared and weighted against (i.e. Equivalent Benefit Unit EBU). Multi-family Residential —This land use is defined as a fully subdivided residential parcel that has more than one residential unit developed on the property. (This land use typically includes apartments, duplexes, triplex etc. , but does not generally include condominiums, town-homes or mobilehome parks). Based on average population densities and size of the structure as compared to a typical single-family residential unit, multi-family residential parcels shall be proportionately assessed for the parcel's total number of residential units utilizing a sliding benefit scale. Although multi-family properties typically receive similar benefits to that of a single-family residential, it would not be reasonable to conclude that on a per unit basis, the benefits are equal. Studies MuniFinancial Page 12 147 i Engineer's Report City of Atascadero Street and Storm Drain Maintenance District No.02 (Woodridge) have consistently shown that the average multi-family unit impacts infrastructure approximately 75% as much as a single-family residence (Sample Sources: Institute of Transportation Engineers Informational Report Trip Generation, Fifth Edition; Metcalf and Eddy, Wastewater Engineering Treatment, Disposal, Reuse, Third Edition). These various studies indicate that most public improvements and infrastructure are utilized and impacted at reduced levels by multi-family residential units and a similar reduction in proportional benefit is appropriate. Furthermore,it is also reasonable to conclude that as the density (number of units) increases, the proportional benefit per unit tends to decline because the unit size and people per unit usually decreases. Based on these considerations and the improvements provided by this District, an appropriate allocation of special benefit for multi-family residential properties as compared to a single-family residential is best represented by the following special benefit assignment: 0.75 EBU per unit for the first 50 units;0.50 EBU per unit for units 51 through 100;and 0.25 EBU per unit for all remaining units. Condominium/Town-home Units — Condominiums and town-homes tend to share attributes of both a single-family residential and multi-family residential properties and for this reason are identified as a separate land use classification. Like most single- family residential properties, these properties are not usually considered rental property and generally, the County assigns each unit a separate APN or assessment number. However, condominiums and town-homes often have similarities to multi-family residential properties in that they are generally zoned medium to high density and in some cases may involve multiple units on a single APN. In consideration of these factors it has been determined that an appropriate allocation of special benefit for condominiums, town-homes and similar residential properties is best represented by an assignment of 0.75 EBU per unit regardless of whether each unit is assigned an individual APN or there are multiple units assigned to an APN. (There is no adjustment for parcels with more than five units). Planned-Residential Development — This land use is defined as any property for which a tentative or final tract map has been filed and approved(a specific number of residential lots and units has been identified) and the property is expected to be subdivided within the fiscal year or is part of the overall improvement and development plan for the District. This land use classification often times involves more than a single parcel (e.g. the approved tract map encompasses more than a single APN). Each parcel that is part of the approved tract map shall be assessed proportionately for the proposed or estimated residential type and units to be developed on that parcel as part of the approved tract map. Accordingly, each parcel is assigned an appropriate number of benefit units that reflects the development of that property at build-out. (The EBU assigned to each parcel shall represent the combination of single-family, condominium, multi-family units to be developed). Vacant Residential — This land use is defined as property currently zoned for residential development, but a tentative or final tract map for the property has not yet been approved. Based upon the opinions of professional appraisers who appraise market property values for real estate in California, the land value portion of a property typically MuniFinancial Page 13 148 Engineer's Report City of Atascadero Street and Storm Drain Maintenance District No. 02 (Woodridge) ranges from 20 to 30 percent of the total value of a developed residential property (the average is about 25 percent).Although the assessed value of an individual property is not a direct reflection of the property's special benefit, this general correlation between land value and structure value does provide a reasonable basis for apportioning special benefit for vacant residential properties. Utilizing this twenty-five percent (25%) apportionment and the number of single-family residential units typically developed per acre of land (an average of 4 residential units per acre) and Equivalent Benefit Unit of 1.0 EBU per acre (4units per acre x 25%) is derived and presents an appropriate apportionment of special benefit for vacant residential properties. Recognizing that the full and timely utilization of vacant property is reduced as the size of the property increases, it has been determined that the maximum EBU assigned to a vacant residential parcel shall not exceed 25.0 EBU (parcels in excess of 25 acres are assigned 25.0 EBU). Parcels less than one acre shall be assigned a minimum of 1.0 EBU (similar to a vacant lot within a residential tract). Exempt Parcels — This land use identifies properties that are not assessed and are assigned 0.00 EBU.This land use classification may include but is not limited to: • Lots or parcels identified as public streets and other roadways (typically not assigned an APN by the County); • Dedicated public easements including open space areas, utility rights-of-way, greenbelts, parkways, parks or other publicly owned properties that are part of the District improvements or may provide other benefits to private properties within the 0 District.; • Private properties that cannot be developed independently from an adjacent property, such as common areas, sliver parcels or bifurcated lots or properties with very restrictive development use; These types of parcels are considered to receive little or no benefit from the improvements and are therefore exempted from assessment, but shall be reviewed annually by the assessment engineer to confirm the parcels current development status. Government owned properties or public pfoperties are not necessarily exempt properties and shall be subject to special benefit assessment unless it qualifies for an exempt status. Special Cases —In many districts where multiple land use classifications are involved, there is usually one or more properties that the standard land use classifications does not accurately identify the special benefits received from the improvements. For example, a parcel may be identified as a Vacant Residential property, however only a small percentage of the parcel's total acreage can actually be developed. In this case, an appropriate calculation would be based on the net acreage that can be utilized rather than the gross acreage of the parcel. The following table provides a summary of land use classifications and the Equivalent Benefit Unit calculations previously outlined. MuniFinancial Page 14 149 Engineer's Report City of Atascadero Street and Storm Drain Maintenance District No. 02 (Woodridge) Land Uses and Equivalent Benefit Units Equivalent Property Type Benefit Units Multiplier Single-family Residential 1.000 per Unit/Lot/Parcel 0.750 per Unit for the First 50 Units Multi-family Residential 0.500 per Unit for Units 51-100 0.250 per Unit for all remaining units Condominium/Town-home Units 0.750 per Unit 1.000 per Planned SF-Residential Lot 0.750 per Planned Condominium Planned-Residential Development 0.750 per Unit for the First 50 Units 0.500 per Unit for Units 51-100 0.250 per Unit for all remaining units Vacant Residential Land 1.000 per Acre Exempt Parcels 0.000 per Parcel The following formula is used to calculate each parcel's EBU (proportional benefit). Parcel Type EBU x Acres or Units = Parcel EBU The total number of Equivalent Benefit Units (EBU's) is the sum of all individual EBU's applied to parcels that receive special benefit from the improvements. An assessment amount per EBU (Assessment Rate) for the improvements is established by taking the total cost of the improvements and dividing that amount by the total number of EBU's of all parcels benefiting from the improvements. This Rate is then applied back to each parcel's individual EBU to determine the parcel's proportionate benefit and assessment obligation for the improvements. Total Balance to Levy / Total EBU = Levy per EBU Levy per EBU x Parcel EBU = Parcel Levy Amount D. Assessment Range Formula Any new or increased assessment requires certain noticing and meeting requirements by law. Prior to the passage of Proposition 218 (California Constitution Articles XIIIC and XIIID), legislative changes in the Brown Act defined a "new or increased assessment" to exclude certain conditions. These conditions included "any assessment that does not exceed an assessment formula or range of assessments previously adopted by the agency or approved MuniFinancial Page 15 150 Engineer's Report City of Atascadero Street and Storm Drain Maintenance District No. 02(Woodridge) by the voters in the area where the assessment is imposed." This definition and conditions were later confirmed through Senate Bill 919 (Proposition 218 implementing legislation). The purpose of establishing an Assessment Range Formula is to provide for reasonable increases and inflationary adjustment to annual assessments without requiring costly noticing and mailing procedures, which could add to the District costs and assessments. As part of the District formation, the notice and assessment ballots presented to the property owners for approval, includes a maximum assessment amount for fiscal year 2005/2006 (initial maximum assessment), identification of the corresponding maximum assessment rate and a summary of the Assessment Range Formula described herein. The Assessment Range Formula for this District shall be applied to all future assessments and is generally defined: • If the proposed annual assessment (levy per EBU) for the upcoming fiscal year is less than or equal to the adjusted Maximum Assessment Rate, then the proposed annual assessment is not considered an increased assessment. • The Maximum Assessment Rate is equal to the (Initial) Maximum Assessment Rate established for fiscal year 2005/2006 adjusted annually by the greater of, three percent (39/6) or the annual percentage change in the Consumer Price Index (CPI) of"All Urban Consumers" for the San Francisco-Oakland-San Jose Area. Beginning in the second fiscal year (fiscal year 2006/2007) and each fiscal year thereafter,the Maximum Assessment Rate will be recalculated and a new Maximum Assessment Rate established for the fiscal year utilizing the Assessment Range Formula described above. The Maximum Assessment Rate shall be calculated independent of the District's annual budget and proposed assessment. The annual percentage change in CPI shall be based on available data provided by the U.S. Department of Labor;Bureau of Labor Statistics at the time the annual Report is prepared. Should the Bureau of Labor Statistics revise such index or discontinue the preparation of such index, the City shall use the revised index or comparable system as approved by the City Council for determining fluctuations in the cost of living. Any proposed annual assessment (rate per EBU) less than or equal to the calculated (adjusted) Maximum Assessment Rate is not considered an increased assessment,even if the proposed assessment is significantly greater than the assessment applied in the prior fiscal year. Likewise, modifications to the method of apportionment that increases the proportional special benefit assigned to a particular land use classification would be considered an increased assessment. Conversely, reductions in the proportional special benefit assigned to a land use classifications is permitted. Changes in land use or size of an individual property resulting in an assessment increase, is not considered an increased assessment. To impose a new or increased assessment other than the annual inflationary adjustment provided by the preceding Assessment Range Formula, the City must comply with the provisions of the California Constitution Article XIIID Section 4c, that requires a public MuniFinancial Page 16 151 Engineer's Report City of Atascadero Street and Storm Drain Maintenance District No.02 (Woodridge) hearing and certain protest procedures including mailed notice of the public hearing and property owner protest balloting. Property owners through the balloting process must approve a proposed new or increased assessment before such an assessment may be imposed. As part of the District formation, property owners shall be balloted for a special benefit assessment necessary for the annual operation and maintenance of the District improvements. Although this Report establishes an assessment amount for each of the existing properties within the District and this amount is used to determine if majority protest exists in the ballot tabulation, these assessments are based on the initial maximum assessment rate and method of apportionment described in this Report. The notice and ballot presented to the property owners identifies the initial maximum assessment rate and the Assessment Range Formula described above and is the basis upon which the property owners cast their ballots. MuniFinancial Page 17 152 Engineer's Report City of Atascadero Street and Storm Drain Maintenance District No. 02 (Woodridge) PART III - DISTRICT BUDGET Total Special Fust Budget Items Proposed Benefit Year's Budget Assessment Assessment DIRECT COSTS Streets&Roads Annual Inspection&Maintenance:Street Surfaces 4,214 4,214 1,054 Annual Inspection&Maintenance:Curbs,Gutters,Approaches&Sidewalks 3,013 3,013 753 Annual Inspection&Maintenance:Signs,Barricades&Other Right-of-Way Facilities 91 91 23 Mechanized Cleaning&Sweeping:Streets 1,524 1,524 381 Collection for Periodic Street Surface Activities:Slurry Seal,Overlay,Non-Asphalt Repairs 49,404 49,404 12,351 Collection for Periodic Street Re-striping 65 65 16 Collection for Periodic Repair Activities:Curbs,Gutters,Approaches&Sidewalks 1,434 1,434 359 Total Annual Funding:Streets 59,745 59,745 14,936 Storm Drain Improvements Annual Inspection&Maintenance:Drainage Basins and/or Channelways 29,842 29,842 7,461 Annual Inspection,Maintenance&Cleaning:Inlets,Catch Basins,Manholes,Outlets&Drywells 323 323 81 Annual Inspection&Maintenance:Storm Drain Pipes 956 956 239 Collection for Periodic Debris Removal,Rehabilitation&Repairs:Basin&Channelway Surfaces 4,389 4,389 1,097 Collection for Periodic Repairs&Rehabilitation:Storm Drain Infrastructure 971 971 243 Total Annual Funding:Storm Drain Improvements 36,481 36,481 9,120 ADMINISTRATION EXPENSES City Annual Administration&Overhead 10,016 10,016 10,016 Professional Fees&Services 3,275 3,275 3,275 County Administration Fee 61 61 61 Miscellaneous Administration Expenses 334 334 334 Total Annual Administration Costs 13,686 13,686 13,686 LEVY ADJUSTMENTS Reserve Fund Collection/(Transfer) 5,496 5,496 1,887 General Benefit(Contribution) - - - Revenues from Other Sources(Contribution) - - - Total Levy Adjustments 5,496 5,496 1,887 BALANCE TO LEVY $ 115,408 $ 115,408 $39,629 Total Parcels 183 5 Parcels Levied 179 4 Total EBU 231.75 231.75 Levy per EBU $497.98 $171.00 Maximum Levy per EBU $497.98 $497.98 Estimated Ending Reserve Balance 5,496 5,496 1,887 Estimated Ending Capital Improvement Project(CIP)Balance 56,263 56,263 1 14,066 Estimated Ending Fund Balance(Reserves&CIP) $ 61,759 $ 61,759 1 $15,953 The proposed Maximum Assessment per EBU shown above is based on the cost of providing the District improvements and does not include any other assessments or charges imposed on the properties. MuniFinancial Page 18 153 Engineer's Report City of Atascadero Street and Storm Drain Maintenance District No. 02 (Woodridge) PART IV - DISTRICT.DIAGRAMS The parcels within the Street and Storm Drain Maintenance District No. 02 (Woodridge) consist of all lots, parcels and subdivisions of land located in the planned residential development known as Woodridge, Tract 2525-1. The District covers approximately twenty-eight acres (28.35 acres) in the northern portion of the City of Atascadero. The following District Diagram is based on the San Luis Obispo County Assessor's Maps and the San Luis Obispo County Assessor's information and identifies all the parcels of land within the proposed District, as the same existed at the time this Report was prepared. The combination of this map and the Assessment Roll contained in this Report constitute the District Assessment Diagram. The maximum assessment rate, assessment range formula and the proposed assessment amount for each of the existing parcels within the District as described herein, shall be presented to the property owners of record for approval or protest in accordance with the provisions of the California Constitution. MuniFinancial Page 19 154 0 N b0 ' A Qz 00 f -` z � opo wH � Let- A w rk N 155 Engineer's Report City of Atascadero Street and Storm Drain Maintenance District No. 02 (Woodridge) PART V - ASSESSMENT ROLL Parcel identification for each lot or parcel within the District is based on the Assessment Diagram presented herein and is based on available parcel maps and property data from the San Luis Obispo County Assessor's Office at the time the Engineer's Report was prepared. A listing of the proposed lots and parcels to be assessed within this District along with the assessment amounts is provided herein. Non-assessable lots or parcels may include,but are not limited to public streets and other roadways (typically not assigned an APN by the County); dedicated public easements, open space areas,right- of-ways, common areas;landlocked parcels,small parcels vacated by the County,bifurcated lots,and any other property that can not be developed or has little or no value. 'These types of parcels are considered to receive little or no benefit from the improvements and are therefore exempted from assessment. If any parcel submitted for collection is identified by the County Auditor/Controller to be an invalid parcel number for the fiscal year,a corrected parcel number and/or new parcel numbers will be identified and resubmitted to the County Auditor/Controller. The assessment amount to be levied and collected for the resubmitted parcel or parcels shall be based on the method of apportionment and assessment rate described in this Report as approved by the City Council. Therefore,if a single parcel is subdivided to multiple parcels, the assessment amount applied to each of the new parcels shall be recalculated and applied according to the approved method of apportionment and assessment rate rather than a proportionate share of the original assessment. The following is a list of the parcels and proposed assessment amounts for each of the parcels within the District as determined by the assessment rates and method of apportionment described herein: Assessor's Proposed First Parcel Maximum Year's Lot Ntimber Overall Land Use EBU . Assessment Assessment 1 045-311-001 Planned Mixed Residential Development 122.75 $ 61,127.04 $ 20,990.26 2 045-401-015 Planned Single-Family Residential Development - 3 045-401-016 Planned Single-Family Residential Development - $ $ 4 045-411-001 Planned Single-Family Residential Development 21.00 $ 10,457.58 $ 3,591.00 5 045-412-001 Planned Single-Family Residential Development 88.00 $ 43,822.24 $ 15,048.00 Totals 5 231.75 $ 115,406.86 $ 39,629.26 MuniFinancial Page 21 156 DRAFT RESOLUTION D RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ATASCADERO, CALIFORNIA, DECLARING THE RESULTS OF THE PROPERTY OWNER PROTEST BALLOT PROCEEDING FOR LANDSCAPING AND LIGHTING DISTRICT NO. 02 (WOODRIDGE/LAS LOMAS) AND APPROVING CERTAIN RELATED ACTIONS WHEREAS, the City Council of the City of Atascadero, California(hereafter referred to as "City Council") called and duly held a property owner protest proceeding for Landscaping and Lighting District No. 02 (Woodridge/Las Lomas) (hereafter referred to as "District") pursuant to the provisions of the Landscaping and Lighting Act of 1972,Part 2 of Division 15 of the Streets and Highways Code of California, beginning with Section 22500 (hereafter referred to as the"Act")and the California Constitution Articles XIIIC and XIIID, for the purpose of presenting to the qualified property owners within the District the annual levy of assessments for the costs and expenses related to the ongoing operation, maintenance and servicing of landscaping, lighting and appurtenant facilities installed in conjunction with the development of properties within the residential subdivision known as Woodridge (Las Lomas)Tract 2525-1; and, WHEREAS, the landowners of record within the District as of the close of the Public Hearing held on May 24, 2005 did cast their ballots, weighted by the proportional financial obligation of each ballot, the results of which are illustrated below: Yes: $ + No: $ NOW, THEREFORE,BE IT RESOLVED,by the City Council of the City of Atascadero SECTION 1. The above recitals are true and correct. SECTION 2. The results of the tabulation of the valid property owner protest ballots returned by the property owners of record within said District, prior to the conclusion of the Public Hearing and property owner protest proceeding held for the District on May 24, 2005, is hereby confirmed and made public record. 157 Draft Resolution D Page Two SECTION 3. The tabulation of the valid property owner protest ballots returned by the property owners within said District indicates that majority protest of the assessment does not exist, and the City Council is authorized to take the necessary steps to levy the assessments as approved. SECTION 4. The City Clerk is hereby directed to enter this Resolution on the minutes of the City Council, which shall constitute the official declaration of the result of such property owner protest proceeding. SECTION 5. This Resolution shall become effective immediately upon its adoption. SECTION 6. The City Clerk shall certify the adoption of this Resolution. On motion by Council Member and seconded by Council Member the foregoing Resolution is hereby adopted in its entirety on the following roll call vote: AYES: NOES: ABSENT: ADOPTED: CITY OF ATASCADERO By: Wendy Scalise, Mayor Attest: Marcia McClure Torgerson, C.M.C., City Clerk APPROVED AS TO FORM: Patrick L. Enright, City Attorney is 158 DRAFT RESOLUTION E RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ATASCADERO, CALIFORNIA,AMENDING AND/OR APPROVING THE ENGINEER'S REPORT REGARDING THE FORMATION OF LANDSCAPING AND LIGHTING DISTRICT NO. 02 (WOODRIDGE/LAS LOMAS); AND THE LEVY AND COLLECTION OF ANNUAL ASSESSMENTS RELATED THERETO COMMENCING IN FISCAL YEAR 2005/2006 WHEREAS, The City Council of the City of Atascadero, California (hereafter referred to as "City Council"), pursuant to the provisions of Part 2 of Division 15 of the California Streets and Highways Code, did by previous Resolution order the Engineer, MuniFinancial, to prepare and file a report in accordance with Article 4 of Chapter 1 of Part 2 of Division 15 of the California Streets and Highways Code, commencing with Section 22565, in connection with the formation of Landscaping and Lighting District No. 02 (Woodridge/Las Lomas) (hereafter referred to as the "District") and the proposed levy and collection of assessments related thereto commencing with fiscal year 2005/2006, said fiscal year starting July 1, 2005 and ending June 30, 2006; and, WHEREAS, The Engineer has prepared and filed with the City Clerk of the City of Atascadero and the City Clerk has presented to the City Council such report entitled "Engineer's Report for the Formation of Landscaping and Lighting District No. 02 (Woodridge/Las Lomas), fiscal year 2005/2006" (hereafter referred to as "Engineer's Report") in accordance with the Landscaping and Lighting Act of 1972, Part 2 of Division 15 of the Streets and Highways Code of California,beginning with Section 22500 (hereafter referred to as the"Act"); and, WHEREAS, The City Council has carefully examined and reviewed the Engineer's Report as presented, and is satisfied with each and all of the items and documents as set forth therein, and finds that the levy of assessments has been spread in accordance with the special benefits received from the improvements, operation, maintenance and services to be performed, as set forth in said Engineer's Report. NOW, THEREFORE, BE IT RESOLVED,by the City Council of the City of Atascadero SECTION 1. The above recitals are all true and correct. 159 Draft Resolution E Page Two 0 SECTION 2. The Engineer's Report as presented, consists of the following: a. Plans and specifications that describe the District and Improvements. b. Method of Apportionment that outlines the special benefit conferred on properties within the District from the improvements and the calculations used to establish each parcel's proportional special benefit assessment as well as a description of the assessment range formula that establishes the maximum assessment rate in subsequent fiscal years. c. The Budget that outlines the costs and expenses to service, and maintain the improvements including incidental expenses authorized by the Act to operate the District. d. An Assessment Diagram that identifies the boundaries of the District. e. An Assessment Roll containing each of the Assessor Parcel Numbers that comprise the District and the proportional maximum assessment and first year's assessment commencing fiscal year 2005/2006. SECTION 3. The Engineer's Report as presented, is hereby approved (as submitted or amended by direction of this City Council), and is ordered to be filed in the Office of the City Clerk as a permanent record and to remain open to public inspection. SECTION 4. The City Clerk shall certify to the passage and adoption of this Resolution and the minutes of this meeting shall so reflect the adoption and approval of the Engineer's Report. 160 Draft Resolution E Page Three On motion by Council Member and seconded by Council Member ,the foregoing Resolution is hereby adopted in its entirety on the following roll call vote: AYES: NOES: ABSENT: ADOPTED: CITY OF ATASCADERO By: Wendy Scalise,Mayor Attest: Marcia McClure Torgerson, C.M.C.,City Clerk APPROVED AS TO FORM: Patrick L. Enright, City Attorney 161 DRAFT RESOLUTION F RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ATASCADERO, CALIFORNIA CONFIRMING THE FORMATION OF LANDSCAPING AND LIGHTING DISTRICT NO. 02 (WOODRIDGE/LAS LOMAS) AND ORDERING THE LEVY AND COLLECTION OF ASSESSMENTS FOR FISCAL YEAR 2005/2006 WHEREAS, The City Council of the City of Atascadero, California (hereafter referred to as City Council) has by previous Resolutions initiated proceedings and declared its intention to form Landscaping and Lighting District No. 02 (Woodridge/Las Lomas) (hereafter referred to as the "District") and to levy special benefit assessments against parcels of land within the said District commencing with fiscal year 2005/2006, said fiscal year commencing July 1, 2005 and ending June 30, 2006; pursuant to the provisions of the Landscaping and Lighting Act of 1972, Part 2 of Division 15 of the California Streets and Highways Code, commencing with Section 22500 (hereinafter referred to as the "Act") to pay the costs and expenses of operation, maintenance, repair and servicing of local landscaping, street lighting and all appurtenant facilities related thereto; and, WHEREAS, The Engineer selected by the City Council has prepared and filed with the City Clerk, and the City Clerk has presented to the City Council an Engineer's Report in connection with the proposed formation and levy of special benefit assessments upon eligible parcels of land within the District, and the City Council did by previous Resolution adopt and approve said Engineer's Report; and, WHEREAS, The City Council desires to levy and collect assessments against parcels of land within the District for the fiscal year commencing July 1, 2005 and ending June 30, 2006, to pay the costs and expenses of operation, maintenance, repair and servicing of landscaping, street lighting, and all appurtenant facilities related thereto; and, WHEREAS, The City Council has conducted a property owner protest ballot proceeding for the District assessments proposed to be levied commencing fiscal year 2005/2006, and majority protest of the assessments described in the Engineer's Report did not exist pursuant to the provisions of the California State Constitution Article XIIID. 162 Draft Resolution F Page Two NOW, THEREFORE,BE IT RESOLVED,by the City Council of the City of Atascadero SECTION 1. Following notice duly given, the City Council has held a full and fair Public Hearing regarding its Resolution approving the Engineer's Report prepared in connection therewith; the levy and collection of assessments, and considered all oral and written statements, protests and communications made or filed by interested persons. The City Council has determined that the property owners in accordance with the requirements of the California State Constitution, Article XIS have approved the assessments so presented. SECTION 2. Based upon its review (and amendments, as applicable) of the Engineer's Report, a copy of which has been presented to the City Council and which has been filed with the City Clerk,the City Council hereby finds and determines that: a. The land within District will receive special benefit by the operation, maintenance and servicing of improvements to be provided by the District. b. The District includes all of the lands receiving such special benefit. c. The net amount to be assessed upon the lands within the District is in accordance and apportioned by a formula and method which fairly distributes the net amount among all eligible parcels in proportion to the special benefit to be received by each parcel from the improvements and services for the fiscal year commencing July I, 2005 and ending June 30, 2006. SECTION 3. The City Council hereby orders the proposed improvements to be made, which improvements are briefly described as the maintenance, operation, administration and servicing of the improvements that may include,but is not limited to local street lights, landscaping, parks and open space areas within the District and all appurtenant facilities related thereto. SECTION 4. The maintenance, operation and servicing of improvements shall be performed pursuant to the Act and the County Auditor of San Luis Obispo County shall enter on the County Assessment Roll opposite each parcel of land the amount of levy, and such levies shall be collected at the same time and in the same manner as the County taxes are collected. After collection by the County, the net amount of the levy shall be paid to the City Treasurer. 163 Draft Resolution F Page Three SECTION 5. The City Treasurer shall deposit all money representing assessments collected by the County for the District to the credit of a fund for the Landscaping and Lighting District No. 02 (Woodridge/Las Lomas), and such money shall be expended only for the maintenance, operation and servicing of the improvements as described in the Engineers Report and generally described in Section 3 of this Resolution. SECTION 6. The adoption of this Resolution constitutes the formation of the District, the establishment of the maximum assessment rate described in the Engineer's Report and the levy of assessments for the fiscal year commencing July 1,2005 and ending June 30, 2006. SECTION 7. The City Clerk is hereby authorized and directed to file the levy with the County Auditor upon adoption of this Resolution. On motion by Council Member and seconded by Council Member ,the foregoing Resolution is hereby adopted in its entirety on the following roll call vote: AYES: NOES: ABSENT: ADOPTED: CITY OF ATASCADERO By: Wendy Scalise, Mayor Attest: Marcia McClure Torgerson, C.M.C.,City Clerk APPROVED AS TO FORM: Patrick L. Enright, City Attorney 164 CITY OF ATASCADERO ENGINEER'S REPORT FOR THE FORMATION OF LANDSCAPING AND LIGHTING DISTRICT NO. 02 (WOODRIDGE) FISCAL YEAR 2005/2006 ATASCADERO LANDSCAPING AND LIGHTING DISTRICT NO. 02 (WOODRIDGE) Intent Meeting: April 12, 2005 Public Hearing: May 24, 2005 9 R OWN inancia 11 R u n i R ' I Corporate Office Office Locations 27368 Via Industria Anaheim,CA Pensacola,FL Suite 110 Lancaster,CA Phoenix,AZ Temecula,CA 92590 Los Angeles Regional Office Sacramento,CA Tel: (909)587-3500 Oakland,CA Seattle,WA Tel: (800)755-MUNI(6864) Fax: (909)587-3510 www.muni.com 165 ENGINEER'S REPORT AFFIDAVIT Formation of the Atascadero Landscaping and Lighting District No. 02 (Woodridge) And establishment of Annual Assessments for said District The District includes all parcels of land within the residential subdivision known as Woodridge, Tract 2525-1 City of Atascadero, County of San Luis Obispo, State of California This Report and the enclosed budget, assessments, descriptions and diagrams outline the proposed formation of Landscaping and Lighting District No. 02 (Woodridge) and includes each lot, parcel, and subdivision of land within said District, as the same existed at the time of the passage of the Resolution of Intention. Reference is hereby made to the San Luis Obispo County Assessor's maps for a detailed description of the lines and dimensions of parcels within the District. The undersigned respectfully submits the enclosed Report as directed by the City Council. Dated this day of 52005. MuniFinancial Assessment Engineer On Behalf of the City of Atascadero By: Jim McGuire Senior Project Manager By: Richard Kopecky R. C.E. # 16742 166 TABLE OF CONTENTS INTRODUCTION...............................................................................................1 PART I — PLANS AND SPECIFICATIONS ......................................................4 A. Description of the District......................................................................................4 B. Description of Improvements and Services....................................................4 PART II —METHOD OF APPORTIONMENT.................................................8 A. General............................................................................................................................8 B. Benefit Analysis...........................................................................................................8 C. Assessment Methodology......................................................................................10 D. Assessment Range Formula.................................................................................14 PART III DISTRICT BUDGET .....................................................................17 PART IV— DISTRICT DIAGRAMS.................................................................18 PARTV — ASSESSMENT ROLL.......................................................................20 167 Engineer's Report City of Atascadero Landscaping and Lighting District No. 02 (Woodridge) INTRODUCTION Pursuant to the provisions of the Landscape and Lighting Act of 1972, being Part 2 of Division 15 of the California Streets and Highways Code, commencing with Section 22500 (hereafter referred to as the "1972 Act"), and in compliance with the substantive and procedural requirements of the California State Constitution Article XIIID (hereafter referred to as the "California Constitution"), the City Council of the City of Atascadero, County of San Luis Obispo, State of California (hereafter referred to as "City"), in connection with the proceedings required for the establishment of the special benefit assessment district designated as: Landscaping and Lighting District No. 02 (Woodridge) (hereafter referred to as "District"), which includes all lots and parcels of land within the residential subdivision known as Woodridge, Tract 2525-1 within the City limits of Atascadero. This Engineer's Report (hereafter referred to as "Report") has been prepared in connection with the formation of said District and the levy and collection of annual assessments related thereto commencing in fiscal year 2005/2006, as required pursuant to Chapter 1, Article 4 of the 1972 Act. The City Council proposes to form the District, and levy and collect annual assessments on the County tax rolls to provide ongoing funding for the costs and expenses required to service and maintain the landscaping and lighting improvements associated with and resulting from the development of properties within the District. The improvements to be provided by the District and the assessments described herein are made pursuant to the 1972 Act and the substantive and procedural provisions of the California Constitution Article XIIID. This Report describes the District, the improvements,and the proposed assessments to be levied against properties in connection with the special benefits the properties will receive from the maintenance and servicing of the District improvements. The formation of this District and the annual assessments will provide a funding source (annual assessments) for the continued operation and maintenance of public landscaping and lighting improvements installed in connection with the development of properties within the District. The improvements and assessments described in this Report are based on the planned development of properties within the District and represent an estimate of the direct expenditures, incidental expenses, and fund balances that will be necessary to maintain and service the improvements. The formation of the District, the structure of the District (organization), the proposed improvements, the method of apportionment, and assessments described herein are based on current development plans and specifications for Tract 2525-1; and by reference these plans and specifications are made part of this Report. MuniFinancial Page 1 168 Engineer's Report City of Atascadero Landscaping and Lighting District No. 02 (Woodridge) The word "parcel," for the purposes of this Report, refers to an individual property assigned its own Assessor's Parcel Number (APN) by the San Luis Obispo County Assessor's Office. The San Luis Obispo County Auditor/Controller uses Assessor's Parcel Numbers and specific Fund Numbers to identify properties to be assessed on the tax roll for the special benefit assessments. As part of this District formation, the City of Atascadero shall conduct a Property Owner Protest Ballot proceeding for the proposed levy of a new assessment pursuant to the provisions of the California Constitution, Article XIIID Section 4. In conjunction with this ballot proceeding, the City Council will conduct a noticed public hearing to consider public testimonies, comments and written protests regarding the formation of the District and levy of assessments. Upon conclusion of the public hearing,property owner protest ballots received will be opened and tabulated to determine whether majority protest exists (ballots shall be weighted based on assessment amounts), and by resolution the City Council will confirm the results of the ballot tabulation. If majority protest exists, proceedings for the levy of District assessments shall be abandoned. If tabulation of the ballots indicates that majority protest does not exist for the proposed assessments and the assessment range formula presented and described herein, the City Council may approve the Report (as submitted or amended), order the formation of the District, and approve the levy and collection of assessments. In such case, the assessments for fiscal year 2005/2006 shall be submitted to the San Luis Obispo County Auditor/Controller for inclusion on the property tax roll for each parcel. Each subsequent fiscal year, an Engineer's Report shall be prepared and presented to the City Council describing the District any changes to the District or improvements and the proposed budget and assessments for that fiscal year and the City Council shall hold a noticed public hearing regarding these matters prior to approving and ordering the proposed levy of assessments. If the proposed assessments for the District exceed the maximum assessment described herein (as approved by the property owners), the new or increased assessment must be confirmed through another property owner protest ballot proceeding before such an assessment may be imposed. It should be noted that an increased assessment to an individual property resulting from changes in development or land use does not constitute an increased assessment. This Report consists of five (5) parts: Part I Plans and Specifications: A description of the District boundaries and the proposed improvements associated with the District. The District is being formed with a single benefit zone encompassing all properties within the territory identified as the residential subdivision of Woodridge,Tract 2525-1. Part II The Method of Apportionment: A discussion of benefits the improvements and services provide to properties within the District and the method of calculating each property's proportional special benefit and annual assessment. This section also identifies and outlines an Assessment Range Formula that provides for an annual adjustment to the maximum assessment MuniFinancial Page 2 169 Engineer's Report City of Atascadero Landscaping and Lighting District No. 02 (Woodridge) rate that establishes limits on future assessments, but also provides for reasonable cost adjustments due to inflation without the added expense of additional property owner protest ballot proceedings. Part III The District Budget: An estimate of the annual costs to operate, maintain and service the landscaping and lighting improvements and facilities installed and constructed as part of the development of properties within the District. This budget includes an estimate of anticipated direct maintenance costs and incidental expenses including, but not limited to administration expenses and the collection of appropriate fund balances to establish an initial maximum assessment to be approved by the property owners of record. The special benefit assessments are based on the overall operation costs minus any costs that are considered general benefit.The proposed assessments for the first fiscal year (2005/2006), and each subsequent year shall be based on the estimated net annual cost of operating, maintaining and servicing the District improvements for that fiscal year as well as funds to be collected in installments to perform maintenance activities that cannot be reasonably collected in a single fiscal year's assessments. The proposed maximum assessment (Rate per Equivalent Benefit Unit) identified in the budget of this Report establishes the initial maximum assessment for the District in fiscal year 2005/2006 and shall be adjusted annually by the Assessment Range Formula described in the method of apportionment. Part IV District Diagram: A Diagram showing the exterior boundaries of the District is provided in this Report and includes all parcels that will receive special benefits from the improvements. Parcel identification, the lines and dimensions of each lot, parcel and subdivision of land within the District, are inclusive of all parcels as shown on the San Luis Obispo County Assessor's Parcel Maps as they existed at the time of the passage of the Resolution of Intention, and shall include all subsequent subdivisions, lot line adjustments or parcel changes therein. Reference is hereby made to the San Luis Obispo County Assessor's maps for a detailed description of the lines and dimensions of each lot and parcel of land within the District. Part V Assessment Roll:A listing of the proposed assessment amount to be presented to the property owners of record in the protest ballot proceedings required pursuant to the provisions of the California Constitution. The proposed assessment amount for each parcel is based on the parcel's proportional special benefit as outlined in the method of apportionment and the proposed initial maximum assessment rate. MuniFinancial Page 3 170 Engineer's Report City of Atascadero Landscaping and Lighting District No. 02 (Woodridge) PART I - PLANS AND SPECIFICATIONS A. Description of the District The territory within the District consists of all lots, parcels and subdivisions of land within the proposed residential subdivision known as the Woodridge, Tract 2525-1, which encompasses an area of land totaling approximately one hundred twenty-two acres (121.65 acres). This residential subdivision is planned to include one hundred forty-three (143) single- family residential units; thirty-five (35) condominium/senior housing units; and a single one hundred (100) unit multi-family residential project at build-out. The planned subdivision is situated in the southeast portion of the City of Atascadero and is generally located: • South and east of Halcon Road; • East of Highway 101 and El Camino Real • South and west of the Southern Pacific Railroad Tracks;and • North of Salinas Road and Santa Cruz Road The parcels within the District at the time this Report was prepared are identified by the San Luis Obispo County Assessor's Office as parcel numbers: 045-311-001; 045-401- 015;045-401-016;045-411-001; and 045-412-001. B. Description of Improvements and Services ~ Improvements and Services Permitted Pursuant to the 1972 Act As generally defined by the Landscaping and Lighting Act of 1972 and applicable to this District, the improvements and associated assessments may include one or more of the following: 1) The installation or planting of landscaping; 2) The installation or construction of statuary, fountains, and other ornamental structures and facilities; 3) The installation or construction of public lighting facilities including, but not limited to street lights and traffic signals; 4) The installation or construction of any facilities which are appurtenant to any of the foregoing or which are necessary or convenient for the maintenance or servicing thereof, MuniFinancial Page 4 171 Engineer's Report City of Atascadero Landscaping and Lighting District No. 02 (Woodridge) 4 5) The installation of park or recreational improvements, including, but not limited to, all of the following: a) Land preparation, such as grading, leveling, cutting and filling, sod, landscaping, irrigation systems, sidewalks, and drainage. b) Lights,playground equipment, play courts, and public restrooms. 6) The acquisition of land for park,recreational, or open-space purposes or any existing improvement otherwise authorized pursuant to this section. 7) The maintenance or servicing, of any of the foregoing including the furnishing of services and materials for the ordinary and usual maintenance, operation, and servicing of any improvement including but not limited to: a) Repair,removal,or replacement of all or any part of any improvements; b) Grading, clearing, removal of debris, the installation or construction of curbs, gutters, walls, sidewalks, or paving, or water, irrigation, drainage, or electrical facilities; c) Providing for the life, growth, health, and beauty of landscaping, including cultivation, irrigation, trimming, spraying, fertilizing, or treating for disease or injury; d) The removal of trimmings,rubbish, debris,and other solid waste; e) The cleaning, sandblasting, and painting of walls and other improvements to remove or cover graffiti; Electric current or energy, gas, or other illuminating agent for any public lighting facilities or for the lighting or operation of any other improvements; g) Water for the irrigation of any landscaping, the operation of any fountains, or the maintenance of any other improvements. 8) Incidental expenses associated with the improvements including,but not limited to: a) The cost of preparation of the report, including plans, specifications, estimates, diagram, and assessment; b) The costs of printing, advertising, and the publishing, posting and mailing of notices; c) Compensation payable to the County for collection of assessments; d) Compensation of any engineer or attorney employed to render services; e) Any other expenses incidental to the construction, installation, or maintenance and servicing of the improvements; Costs associated with any elections held for the approval of a new or increased assessment. MuniFinancial Page 5 172 Engineer's Report City of Atascadero Landscaping and Lighting District No. 02(Woodridge) General Description of the Improvements The purpose of this District is to ensure the ongoing maintenance, operation and servicing of local landscaping and street lighting improvements established or installed in connection with development of properties within the District. The improvements may consist of all or a portion of the public landscaped areas, street lighting and appurtenant facilities within and adjacent to the District (Tract 2525-1). These improvements generally include, but are not limited to the materials, equipment, utilities, labor, appurtenant facilities and expenses necessary for the ongoing maintenance and operation of public street lighting as well as landscaped parkways, medians, slopes, trails, park areas, drainage basins, open space areas and other designated easements or right-of-ways constructed and installed as part of the development plans and agreements approved for the develop of each lot and parcel within the District. The improvements to be maintained and funded entirely or partially through the District assessments are generally described as: • Streetscape landscaping including trees located on the interior streets of Tract 2525-1 that are within the public right-of-ways or easements and dedicated to the City for maintenance; • Open space areas and fuel modification areas within or adjacent to the District boundaries; • Recreational areas, equipment, trails and landscaped drainage facilities developed and constructed as part of developing properties within Tract 2525-1; • Public lighting facilities including street lighting, safety lighting and ornamental lighting installed as part of the residential development or landscaped improvements; • All appurtenant facilities, equipment, materials and utilities related to the aforementioned improvements; • Specifically not included as District improvements are those improvements located on private property,improvements and facilities that may be provided or maintained by an agency other than the City;improvements and facilities that may be provide by another assessment o'r tax levied by the City or any improvement provided and maintained by a Homeowner's Association or similar entity. Detailed maps and descriptions of the location and extent of the specific improvements to be maintained by the District are on file in the Office of Public Works and by reference are made part of this Report. Those portions of the District improvements that may be identified as general benefit or will be funded in whole or in part by other revenue sources as part of the approved development agreements, will not be included as part of the District assessments. The net annual cost to provide and maintain the improvements determined to be of special benefit shall be allocated to each property in proportion to the special benefits received. Landscape Improvements The landscape improvements for the District may include, but are not limited to turf, ground cover, shrubs and plants, trees,irrigation and drainage systems, ornamental lighting, MuniFinancial Page 6 173 Engineer's Report City of Atascadero Landscaping and Lighting District No. 02 (Woodridge) masonry walls or other fencing, hardscape improvements, monuments, and associated appurtenant facilities located within the landscape easements or public right-of-ways. Specifically the landscape improvement areas for this District are identified as: • Approximately 34,420 square feet of streetscape landscaping and trees within the public right-of-ways along or adjacent to Halcon Road, Calle Milano, Via Cielo and Eliano Street including but not limited to approximately 27,200 square feet of parkway landscaping and 7,220 square feet of median landscaping; • Approximately 220, 850 square feet (5.07 acres) of landscaped slope areas within the District boundaries and adjacent to the residential properties, open space areas, drainage basins and streets of Tract 2525-1; • Approximately 175,550 square feet (4.03 acres) of landscaped area in and around the two (2) drainage basins within Tract 2525-1. • Approximately 1,981,980 square feet of non-irrigated open space area within the boundaries of the District and associated with the development of the residential properties within Tract 2525-1; • Approximately 225 street trees located within the public right-of-ways of the streets within Tract 2525-1 including but not limited to Calle Milano, Via Cielo, Eliano Street,Avion Road,Azor Lane and Alcotan Lane; • Approximately 1,910 square feet of paths and traits, 45,265 square feet sidewalks and 6,100 linear feet of fencing within and adjacent to the various landscape improvement areas; Public Lighting Improvements The lighting improvements may include but are not limited to the cost of providing electrical energy and servicing of lighting fixtures, poles, meters, conduits, electrical cable and associated appurtenant facilities associated with: • There are five (5) public streetlights currently planned for Tract 2525-1. These streetlights are located on Calle Milano between Halcon Road and Eliano Street (The entryway to all residential properties within the District); • Lighting facilities may also include but are not limited to all safety lights, security lights or ornamental lights located within the various landscape improvement areas installed as part of the District's landscape improvements. MuniFinancial Page 7 174 Engineer's Report City of Atascadero Landscaping and Lighting District No.02 (Woodridge) PART II - METHOD OF APPORTIONMENT A. General The 1972 Act permits the establishment of assessment districts by agencies for the purpose of providing certain public improvements,which include the construction,maintenance,and servicing of public lights, landscaping and appurtenant facilities. The 1972 Act further requires that the cost of these improvements be levied according to benefit rather than assessed value: "The net amount to be assessed upon lands within an assessment district 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 benefits to be received by each such lot or parcel from the improvements." The method of apportionment described in this Report for allocation of special benefit assessments utilizes commonly accepted engineering practices and have been established pursuant to the 1972 Act and the provisions of the California Constitution. The formulas used for calculating assessments reflects the composition of parcels within the District and the improvements and services provided, to fairly apportion the costs based on the special benefits to each parcel. B. Benefit Analysis Each of the proposed improvements, the associated costs and assessments have been carefully reviewed, identified and allocated based on special benefit pursuant to the provisions of the California Constitution and 1972 Act.The improvements provided by this District and for which properties will be assessed have been identified as necessary,required and/or desired for the orderly development df the properties within the District to their full potential,consistent with the development plans and applicable portions of the City General Plan. As such, these improvements would be necessary and required of individual property owners for the development of such properties and the ongoing operation, servicing and maintenance of these improvements would be the financial obligation of those properties. Therefore, the improvements and the annual costs of ensuring the maintenance and operation of the improvements are a distinct and special benefit to the properties within the District. Any improvement or portion thereof that is considered to be of general benefit shall be funded by other revenue sources and not included as part of the special benefit assessments allocated to properties within the District. Special Benefit The method of apportionment (method of assessment) established herein is based on the premise that each assessed parcel within the District receives special benefits from the improvements and the desirability and security of those properties is enhanced by the MuniFinancial Page 8 175 Engineer's Report City of Atascadero Landscaping and Lighting District No. 02 (Woodridge) presence of public lighting and well-maintained landscaping in close proximity to those properties. The special benefits associated with landscape improvements are specifically: • Enhanced desirability of properties through association with the improvements. • Improved aesthetic appeal of properties providing a positive representation of the area and properties. • Enhanced adaptation of the urban environment within the natural environment from adequate green space and landscaping. • Environmental enhancement through improved erosion resistance, dust and debris control, and fire prevention. • Increased sense of pride in ownership of property within the District resulting from well-maintained improvements associated with the properties. • Enhanced quality of life through well-maintained green space and landscaped areas. • Reduced criminal activity and property-related crimes (especially vandalism) against properties in the District through well-maintained surroundings and amenities including abatement of graffiti. • Enhanced environmental quality of the parcels by moderating temperatures, providing oxygenation and attenuating noise. The special benefits of street lighting and other public lighting facilities are the convenience, safety,and security of property,improvements,and goods.Specifically: • Enhanced deterrence of crime and the aid to police protection. • Increased nighttime safety on roads, streets and public areas. • Improved ability of pedestrians and motorists to see. • Improved ingress and egress to property. • Reduced vandalism and other criminal act and damage to improvements or property. • Improved traffic circulation and reduced nighttime accidents and personal property loss. All of the preceding special benefits contribute to the esthetic value and desirability of each of the assessed parcels within the District and thereby provide a special enhancement of the properties. Furthermore,it has been determined that the lack of funding to properly service and maintain the District improvements would have a negative impact on the properties within the District. MuniFinancial Page 9 176 Engineer's Report City of Atascadero Landscaping and Lighting District No. 02 (Woodridge) General Benefit In reviewing each of the District improvements, the proximity of those improvements to both properties within the District and those outside the District as well as the reasons for installing and constructing such improvements, it is evident that the improvements with exception of some of the open space areas have been installed solely as a result of developing the residential properties within the District and the ongoing maintenance and operation of those improvements directly effect the properties within the District.Although the improvements include public areas, easements, right-of-ways and other amenities available or visible to the public at large, the construction and installation of these improvements (except portions of the open space areas) were only necessary for the development of the residential properties within the District and were not required not necessarily desired by any properties or developments outside the District and any public access or use of the improvements by others is incidental.Therefore,it has been determined that the ongoing maintenance, servicing and operation of those improvements provide no measurable general benefit to properties outside the District or to the public at large, but clearly provide distinct and special benefits to properties within the District. With respect to the open space areas, these areas are an integral part of property development within the District and clearly provide a direct and special benefit those properties. However,it is also recognized that the majority of this open space area is located on the perimeter of the District and is directly accessible from surrounding properties and the public at large. Therefore it has been determined that up to twenty-five percent (25%) of the costs to maintain this area shall be allocated as general benefit and not assessed as part of the District's special benefit assessments. C. Assessment Methodology The method of apportionment for the District calculates the receipt of special benefit from the respective improvements based on the actual or proposed land use of the parcels within the District. The special benefit received by each lot or parcel is equated to the overall land use of parcels within the District based on the parcel's actual land use or proposed development. All costs associated with the improvements shall be fairly distributed among the residential properties within the District based upon the special benefit received by each parcel. Additionally, in compliance with the California Constitution Article XIIID Section 4, each parcel's assessment may not exceed the reasonable cost of the proportional special benefit conferred to that parcel.The benefit formula used to determine the assessment obligation is therefore based upon both the improvements that benefit the parcels within the District as well as the proposed land use of each property as compared to other parcels that benefit from those specific improvements. To identify and determine the special benefit to be received by each parcel and their proportionate share of the improvement costs it is necessary to consider the entire scope of the planned improvements as well as individual property development within the District. Upon review of the proposed improvements it has been determined that each of the MuniFinancial Page 10 177 Engineer's Report City of Atascadero Landscaping and Lighting District No.02(Woodridge) residential parcel within the District receives special benefits from all the improvements to be funded by annual assessments and based on the planned property development a single zone of benefit is appropriate for the allocation of the assessments and proportional benefit. Equivalent Benefit Units: To assess benefits equitably it is necessary to relate each property's proportional special benefits to the special benefits of all other properties within the District. The method of apportionment established for most districts formed under the 1972 Benefit Act utilizes a weighted method of apportionment known as an Equivalent Benefit Unit (EBU) methodology that uses the single-family home site as the basic unit of assessment.A single- family home site equals one Equivalent Benefit Unit (EBU) and all other land uses are converted to a weighted EBU based on an assessment formula that equates the property's specific development status, type of development (land use), and size of the property, as compared to a single-family home site. Although the Equivalent Benefit Unit method of apportioning special benefit is most commonly used and applied to districts that have a wide range of land use classifications (residential and non-residential use), this District is comprised of only residential properties and the following apportionment analysis of special benefit addresses only residential land uses. Not all land use types described in the following are necessarily applicable to the development of properties within this District, but are presented for comparison purposes to support the proportional special benefit applied to those land use types within the District. Single-family Residential —This land use is defined as a fully subdivided residential home site with or without a structure. This land use is assessed 1.00 EBU per lot or parcel.This is the base value that all other properties are compared and weighted against (i.e. Equivalent Benefit Unit EBU). Multi-family Residential — This land use is defined as a fully subdivided residential parcel that has more than one residential unit developed on the property. (This land use typically includes apartments, duplexes, triplex etc. , but does not generally include condominiums, town-homes or mobilehome parks). Based on average population densities and size of the structure as compared to a typical single-family residential unit, multi-family residential parcels shall be proportionately assessed for the parcel's total number of residential units utilizing a sliding benefit scale. Although multi-family properties typically receive similar benefits to that of a single-family residential, it would not be reasonable to conclude that on a per unit basis, the benefits are equal. Studies have consistently shown that the average multi-family unit impacts infrastructure approximately 75% as much as a single-family residence (Sample Sources: Institute of Transportation Engineers Informational Report Trip Generation, Fifth Edition; Metcalf and Eddy, Wastewater Engineering Treatment, Disposal, Reuse, Third Edition). These various studies indicate that most public improvements and infrastructure are utilized MuniFinancial Page 11 178 Engineer's Report City of Atascadero Landscaping and Lighting District No. 02 (Woodridge) and Impacted at reduced levels b multi-famil residential units and a similar reduction in P Y Y proportional benefit is appropriate. Furthermore,it is also reasonable to conclude that as the density (number of units) increases, the proportional benefit per unit tends to decline because the unit size and people per unit usually decreases. Based on these considerations and the improvements provided by this District, an appropriate allocation of special benefit for multi-family residential properties as compared to a single-family residential is best represented by the following special benefit assignment: 0.75 EBU per unit for the first 50 units;0.50 EBU per unit for units 51 through 100;and 0.25 EBU per unit for all remaining units. Condominium/Town-home Units — Condominiums and town-homes tend to share attributes of both a single-family residential and multi-family residential properties and for this reason are identified as a separate land use classification. Like most single- family residential properties, these properties are not usually considered rental property and generally, the County assigns each unit a separate APN or assessment number. However, condominiums and town-homes often have similarities to multi-family residential properties in that they are generally zoned medium to high density and in some cases may involve multiple units on a single APN. In consideration of these factors it has been determined that an appropriate allocation of special benefit for condominiums, town-homes and similar residential properties is best represented by an assignment of 0.75 EBU per unit regardless of whether each unit is assigned an individual APN or there are multiple units assigned to an APN. (There is no adjustment for parcels with more than five units). Planned-Residential Development — This land use is defined as any property for which a tentative or final tract map has been filed and approved (a specific number of residential lots and units has been identified) and the property is expected to be subdivided within the fiscal year or is part of the overall improvement and development = plan for the District. This land use classification often times involves more than a single parcel (e.g. the approved tract map encompasses more than a single APN). Each parcel that is part of the approved tract map shall be assessed proportionately for the proposed or estimated residential type and units to be developed on that parcel as part of the approved tract map. Accordingly, each parcel is assigned an appropriate number of benefit units that reflects the development of that property at build-out. (The EBU assigned to each parcel shall represent the combination of single-family, condominium, multi-family units to be developed). Vacant Residential — This land use is defined as property currently zoned for residential development, but a tentative or final tract map for the property has not yet been approved. Based upon the opinions of professional appraisers who appraise market property values for real estate in California, the land value portion of a property typically ranges from 20 to 30 percent of the total value of a developed residential property (the average is about 25 percent).Although the assessed value of an individual property is not MuniFinancial Page 12 179 Engineer's Report City of Atascadero Landscaping and Lighting District No. 02 (Woodridge) a direct reflection of the property's special benefit, this general correlation between land value and structure value does provide a reasonable basis for apportioning special benefit for vacant residential properties. Utilizing this twenty-five percent (25%) apportionment and the number of single-family residential units typically developed per acre of land (an average of 4 residential units per acre) and Equivalent Benefit Unit of 1.0 EBU per acre (4units per acre x 25%) is derived and presents an appropriate apportionment of special benefit for vacant residential properties. Recognizing that the full and timely utilization of vacant property is reduced as the size of the property increases, it has been determined that the maximum EBU assigned to a vacant residential parcel shall not exceed 25.0 EBU (parcels in excess of 25 acres are assigned 25.0 EBU). Parcels less than one acre shall be assigned a minimum of 1.0 EBU (similar to a vacant lot within a residential tract). Exempt Parcels — This land use identifies properties that are not assessed and are assigned 0.00 EBU. This land use classification may include but is not limited to: • Lots or parcels identified as public streets and other roadways (typically not assigned an APN by the County); • Dedicated public easements including open space areas, utility rights-of-way, greenbelts, parkways, parks or other publicly owned properties that are part of the District improvements or may provide other benefits to private properties within the District.; • Private properties that cannot be developed independently from an adjacent property, such as common areas, sliver parcels or bifurcated lots or properties with very restrictive development use; These types of parcels are considered to receive little or no benefit from the improvements and are therefore exempted from assessment, but shall be reviewed y annually by the assessment engineer to confirm the parcels current development status. Government owned properties or public properties are not necessarily exempt properties and shall be subject to special benefit assessment unless it qualifies for an exempt status. Special Cases —In many districts where multiple land use classifications are involved, there is usually one or more properties that the standard land use classifications does not accurately identify the special benefits received from the improvements. For example, a parcel may be identified as a Vacant Residential property, however only a small percentage of the parcel's total acreage can actually be developed. In this case, an appropriate calculation would be based on the net acreage that can be utilized rather than the gross acreage of the parcel. The following table provides a summary of land use classifications and the Equivalent Benefit Unit calculations previously outlined. MuniFinancial Page 13 180 Engineer's Report City of Atascadero Landscaping and Lighting District No. 02 (Woodridge) Land Uses and Equivalent Benefit Units Equivalent Property Type Benefit Units Multiplier Single-family Residential 1.000 per Unit/Lot/Parcel 0.750 per Unit for the First 50 Units Multi-family Residential 0.500 per Unit for Units 51-100 0.250 per Unit for all remaining units Condominium/Town-home Units 0.750 per Unit 1.000 per Planned SF-Residential Lot 0.750 per Planned Condominium Planned-Residential Development 0.750 per Unit for the First 50 Units 0.500 per Unit for Units 51-100 0.250 per Unit for all remaining units Vacant Residential Land 1.000 per Acre Exempt Parcels 0.000 per Parcel The following formula is used to calculate each parcel's EBU (proportional benefit). Parcel Type ESU x Acres or Units = Parcel EBU The total number of Equivalent Benefit Units (EBU's) is the sum of all individual EBU's applied to parcels that receive special benefit from the improvements. An assessment amount per EBU (Assessment Rate) for the improvements is established by taking the total cost of the improvements and dividing that amount by the total number of EBU's of all parcels benefiting from the improvements. This Rate is then applied back to each parcel's individual EBU to determine the parcel's proportionate benefit and assessment obligation for the improvements. Total Balance to Levy / Total ESU = Levy per EBU Levy per EBU x Parcel ESU = Parcel Levy Amount D. Assessment Range Formula Any new or increased assessment requires certain noticing and meeting requirements bylaw. Prior to the passage of Proposition 218 (California Constitution Articles XIIIC and XIIID), legislative changes in the Brown Act defined a "new or increased assessment" to exclude certain conditions. These conditions included "any assessment that does not exceed an assessment formula or range of assessments previously adopted by the agency or approved MuniFinancial Page 14 181 Engineer's Report City of Atascadero Landscaping and Lighting District No. 02 (Woodridge) by the voters in the area where the assessment is imposed. This definition and conditions were later confirmed through Senate Bill 919 (Proposition 218 implementing legislation). The purpose of establishing an Assessment Range Formula is to provide for reasonable increases and inflationary adjustment to annual assessments without requiring costly noticing and mailing procedures, which could add to the District costs and assessments. As part of the District formation, the notice and assessment ballots presented to the property owners for approval, includes a maximum assessment amount for fiscal year 2005/2006 (initial maximum assessment), identification of the corresponding maximum assessment rate and a summary of the Assessment Range Formula described herein. The Assessment Range Formula for this District shall be applied to all future assessments and is generally defined: • If the proposed annual assessment (levy per EBU) for the upcoming fiscal year is less than or equal to the adjusted Maximum Assessment Rate, then the proposed annual assessment is not considered an increased assessment. • The Maximum Assessment Rate is equal to the (Initial) Maximum Assessment Rate established for fiscal year 2005/2006 adjusted annually by the greater of, three percent (3%) or the annual percentage change in the Consumer Price Index(CPI) of"All Urban Consumers" for the San Francisco-Oakland-San Jose Area. Beginning in the second fiscal year(fiscal year 2006/2007) and each fiscal year thereafter,the Maximum Assessment Rate will be recalculated and a new Maximum Assessment Rate established for the fiscal year utilizing the Assessment Range Formula described above. The Maximum Assessment Rate shall be calculated independent of the District's annual budget and proposed assessment.The annual percentage change in CPI shall be based on available data provided by the U.S. Department of Labor; Bureau of Labor Statistics at the time the annual Report is prepared. Should the Bureau of Labor Statistics revise such index or discontinue the preparation of such index, the City shall use the revised index or comparable system as approved by the City Council for determining fluctuations in the cost of living. Any proposed annual assessment (rate per EBU) less than or equal to the calculated (adjusted) Maximum Assessment Rate is not considered an increased assessment,even if the proposed assessment is significantly greater than the assessment applied in the prior fiscal year. Likewise, modifications to the method of apportionment that increases the proportional special benefit assigned to a particular land use classification would be considered an increased assessment. Conversely, reductions in the proportional special benefit assigned to a land use classifications is permitted. Changes in land use or size of an individual property resulting in an assessment increase, is not considered an increased assessment. To impose a new or increased assessment other than the annual inflationary adjustment provided by the preceding Assessment Range Formula, the City must comply with the provisions of the California Constitution Article XIIID Section 4c, that requires a public MuniFinancial Page 15 182 Engineer's Report City of Atascadero Landscaping and Lighting District No. 02 (Woodridge) hearing and certain protest procedures including mailed notice of the public hearing and property owner protest balloting. Property owners through the balloting process must approve a proposed new or increased assessment before such an assessment may be imposed. As part of the District formation, property owners shall be balloted for a special benefit assessment necessary for the annual operation and maintenance of the District improvements. Although this Report establishes an assessment amount for each of the existing properties within the District and this amount is used to determine if majority protest exists in the ballot tabulation, these assessments are based on the initial maximum assessment rate and method of apportionment described in this Report. The notice and ballot presented to the property owners identifies the initial maximum assessment rate and the Assessment Range Formula described above and is the basis upon which the property owners cast their ballots. MuniFinancial Page 16 183 Engineer's Report City of Atascadero Landscaping and Lighting District No. 02 (Woodridge) PART III - DISTRICT BUDGET Special First Total General Benefit Year's BUDGET ITEM Budget Benefit Assessment Assessment ANNUAL MAINTENANCE(DIRECT COSTS) Parkway Maintenance 10,464 - 10,464 2,616 Slope Maintenance 79,836 - 79,836 19,959 Median Maintenance 2,914 - 2,914 729 Park&Open Space Maintenance 92,074 6,503 85,571 21,393 Tree Maintenance 3,732 12 3,720 930 Landscape Utilities(Water/Electricity) 47,554 - 47,554 11,889 Streetlight Maintenance and Energy 969 - 969 243 Miscellenaous Materials&Equipment 4,730 163 4,567 1,142 Total Landscaping&Lighting Maintenance 242,273 6,678 235,595 58,901 REPLACEMENT/REHABILITATION(CIP) Parkway Rehabihtaion/Replacement 646 - 646 162 Slope Rehabilitaion/Replacement 3,754 - 3,754 939 Median Rehab2itaion/Replacement 138 - 138 35 Park&Open Space Rehabilitaion/Replacement 4,376 312 4,064 1,016 TreeRehabilitaion/Replacement 5,842 9 5,834 1,459 Streetlight Rehabilitaion/Replacement 95 - 95 24 Total Capital Improvement/Rehabilitation Budget 14,851 321 14,531 3,635 ADMINISTRATION City Administration Overhead 19,382 534 18,848 18,848 Professional Fees for Admin 3,679 - 3,679 3,679 County Administration Fee 61 - 61 61 Miscellaneous Administration Expenses 231 5 226 226 Total Administration 23,353 539 22,814 22,814 Total Costs&Expenses 280,477 7,538 272,940 85,350 LEVY ADJUSTMENTS Reserve Fund Collection/(Transfer) 13,647 13,647 4,268 Revenues from Other Sources(Contribution) - - - - General Benefit(Contribution) (7,538) (7,538) - - Total Levy Adjustments 6,109 (7,538) 13,647 4,268 BALANCE TO LEVY $286,587 $0 $286,587 $89,618 Total Parcels 183 5 Parcels Levied 179 3 Total EBU 231.75 231.75 Levy per EBU $ 1,236.62 $ 386.70 Maximum Levy per EBU $ 1,236.62 $ 1,236.62 FUND BALANCE INFORMATION Estimated Ending Reserve Balance 13,647 13,647 4,268 Estimated Ending CIP Balance 14,531 14,531 3,635 Estimated Ending Fund Balance(Reserves&CIP) $ 28,178 $ 28,178 $ 7,903 The proposed Maximum Assessment per EBU shown above is based on the cost of providing the District improvements and does not include any other assessments or charges imposed on the properties. It has been determined that up to 25% of the costs associated with the open space area within the District provides a general benefit to surrounding properties and this portion of the maintenance costs is not included in the special benefit assessments.This is reflected in the budget as a general benefit contribution. MuniFinancial Page 17 184 Engineer's Report City of Atascadero Landscaping and Lighting District No. 02 (Woodridge) PART IV - DISTRICT DIAGRAMS The parcels within the Landscaping and Lighting District No. 02 (Woodridge) consist of all lots, parcels and subdivisions of land located in the planned residential development known as Woodridge, Tract 2525-1. The District covers approximately one hundred twenty-two acres (121.65 acres) in the southeast portion of the City of Atascadero. The following District Diagram is based on the San Luis Obispo County Assessor's Maps and the San Luis Obispo County Assessor's information and identifies all the parcels of land within the proposed District, as the same existed at the time this Report was prepared. The combination of this map and the Assessment Roll contained in this Report constitute the District Assessment Diagram. The maximum assessment rate, assessment range formula and the proposed assessment amount for each of the existing parcels within the District as described herein, shall be presented to the property owners of record for approval or protest in accordance with the provisions of the California Constitution. MuniFinancial Page 18 185 00 3� 1 �d Co It Enw if � V O a w Z4 z o C7 q d � d •K v ti w 186 Engineer's Report City of Atascadero Landscaping and Lighting District No. 02 (Woodridge) PART V - ASSESSMENT ROLL Parcel identification for each lot or parcel within the District is based on the Assessment Diagram presented herein and is based on available parcel maps and property data from the San Luis Obispo County Assessor's Office at the time the Engineer's Report was prepared.A listing of the proposed lots and parcels to be assessed within this District along with the assessment amounts is provided herein. Non-assessable lots or parcels may include, but are not limited to public streets and other roadways (typically not assigned an APN by the County); dedicated public easements openen space areas,right- of-ways, common areas;landlocked parcels, small parcels vacated by the County,bifurcated lots,and any other property that can not be developed or has little or no value. These types of parcels are considered to receive little or no benefit from the improvements and are therefore exempted from assessment. If any parcel submitted for collection is identified by the County Auditor/Controller to be an invalid parcel number for the fiscal year, a corrected parcel number and/or new parcel numbers will be identified and resubmitted to the County Auditor/Controller. The assessment amount to be levied and collected for the resubmitted parcel or parcels shall be based on the method of apportionment and assessment rate described in this Report as approved by the City Council.Therefore,if a single parcel is subdivided to multiple parcels, the assessment amount applied to each of the new parcels shall be recalculated and applied according to the approved method of apportionment and assessment rate rather than a proportionate share of the original assessment. The following is a list of the parcels and proposed assessment amounts for each of the parcels within the District as determined by the assessment rates and method of apportionment described herein: Assessor's Proposed First Parcel Maximum Year's Lot Number Designated Land Use EBU Assessment Assessment 1 045-311-001 Planned Mixed Residential Development 122.75 $151,795.10 $47,467.42 2 045-401-015 Planned Single-Family Residential Development - $0.00 $0.00 3 045-401-016 Planned Single-Family Residential Development - $0.00 $0.00 4 045-411-001 Planned Single-Family Residential Development 21.00 $25,969.02 $8,120.70 5 045-412-001 Planned Single-Family Residential Development 88.00 $108,822.56 $34,029.60 Totals 5 231.75 $286,586.68 $89,617.72 MuniFinancial Page 20 187 ITEM NUMBER: B-1 (c)(f) DATE: 05/24/05 pp n n Iain p 1970 Atascadero City Council Staff Report-Administrative Service Department Community Facilities District RECOMMENDATIONS: Council: 1. Conduct the Public Hearing for the Community Facilities District; and, 2. Adopt Draft Resolution A, forming Community Facilities District No. 2005-1 (Public Services); and, 3. Adopt Draft Resolution B, calling a special election and submitting to the voters of the City of Atascadero Community Facilities District No. 2005-1 (Public Services) propositions regarding the annual levy of special taxes within the Community Facilities District to finance police services, fire protection and suppression services, and park services therein, and the establishment of an appropriations limit; and, 4. Direct the City Clerk to collect and count the ballots; and, (Council to recess until ballots are counted.) 5. Direct City Clerk to announce the results of the election. 6. Adopt Draft Resolution C, declaring the results of the special elections for the City of Atascadero Community Faciliti*es District No. 2005-1 (Public Services) County of San Luis Obispo, State of California, on the propositions with respect to (i) the annual levy of special taxes, and (ii) the establishment of an appropriations limit, and authorizing the recordation of the notice of special tax lien. REPORT-IN-BRIEF: On April 12, 2005 the Council adopted resolutions declaring its intention and initiating proceedings to form Community Facilities District 2005-1. In order to form the district, Council must hold a public hearing, adopt Draft Resolutions A & B, call for an election, have the clerk report the results of the election, and if the ballot measures pass, adopt Draft Resolution C. 188 ITEM NUMBER: B—1 (c)(f) DATE: 05/24/05 History In July 2004, as a key part of the adoption of the City's Comprehensive Financial Strategy, the Council addressed the need to recover all costs associated with new residential development by directing the formation of a Community Facilities District (CFD). California law allows the formation of such districts for the purpose of recovering the cost of such development. CFDs ensure that new homeowners pay in taxes an amount equal to the actual cost of the City services they are expected to receive. Without such taxes in place, new residential units have a negative impact on the General Fund. The Council memorialized their commitment to cost recovery by conditioning each residential development that comes before them (regardless of size) to annex into the Community Facilities District. The resolutions before Council are the final necessary steps for the creation of a Community Facilities District for police, fire and park services. Several existing development projects have been conditioned to provide full funding of emergency services in perpetuity. Participation in this District fulfills this requirement. Establishing the District will assess new residential development an annual charge of $440 per year ($36 per month) to pay for the service expansion needed to serve these additional residential units. The money collected can only be used to hire new employees and their related equipment, and cannot be used to support existing services. The Colony at Apple Valley, DeAnza, and Woodridge/Los Lomas developments are included in the original Boundary Maps that were adopted April 12, 2005. Later developments will be annexed into the District. Creating a CFD is a major step toward ensuring the long-term financial stability of the community. DISCUSSION: Background In most all municipalities throughout the State of California (since the passage of Proposition 13 in 1978), funding sources derived from residential development do not cover the cost of providing services to those residents. This fact has led to the fiscalization of land use policies as cities compete for big box stores and other high- yielding sales tax uses. As cities vie for sales tax dollars, the amount of land available for housing disappears. Further, chasing sales tax and retail development has the impact of discouraging residential development within a city's limits. In short, developing housing further strains a city's precious, discretionary general fund. The City of Atascadero has established a policy as part of the General Plan that recognizes that determining the best use of land based solely on revenues to the City is not good public policy. The City developed its General Plan using good public land use policy and did not base land use policies simply to generate additional sales tax. Policies of this type promote the development of quality housing projects but they come at-a cost: that new residential development must pay its way. Part of the General Plan requires: 189 ITEM NUMBER: B—1 (c)(f) DATE: 05/24/05 "All residential projects of 1 dwelling units shall be required to p ) 00 or more e g q prepare a fiscal impact report prior to any discretionary approvals. The fiscal impact report shall analyze all revenues, service costs and facilities costs associated with a project. The City shall require the establishment of facilities districts and/or maintenance districts to cover revenue shortfalls on a project." In August 2003, the fiscal impact reports for Dove Creek and Woodridge/Los Lomas became available. At the same time the City purchased a program (Taussig Study) to determine the fiscal impact of projects. As the magnitude of the "loss" on each residential unit became known, Council began to condition other residential development projects as well. Finally, the Council mandated that all residential development coming before them (regardless of size) be annexed into the Community Facilities District. Analysis: When a CFD is being adopted, it is common for residents and developers alike to ask questions. Following are common questions and answers that will help explain the impact and purpose of a CFD. How much will new units in the district pay? Each residential unit within the proposed Community Facilities District will be charged $440 on their annual property tax bill. Every dollar collected by the CFD will be used to fund expanded police, fire and park services. What will the money be used for? Specifically, the money can be used to hire new police officers and new fire personnel. It may also be used for any supplies or equipment needed for the new officers and firefighters to do their jobs. A portion of the money may be used for maintenance for' new parks or expanded parks. Lastly, a small fraction of the tax (1.5%) can be used for the administration of the District. Can the funding be used to pay existing employees more? In no case can the money be used to fund pay raises or benefit increases for existing police officers or firefighters. Additionally, the funds cannot be used to purchase equipment or supplies for existing personnel. It will not go toward maintenance of any existing parks. How is the amount of the tax determined? The requirements for determining the tax for a Community Facilities District are unlike those of other assessment districts. There is no Engineer's Report to determine the exact benefit to each parcel; however, a Community Facilities District tax must be "reasonable". Staff is proposing a flat tax of $440 per residential unit, or $36 per month. The tax being proposed is the result of an extensive financial model and is on the lower 190 ITEM NUMBER: B—1 (c)(f) DATE: 05/24/05 end of what could be charged. When the tax was established, the purpose was not to raise more money than the City really needs to recover costs.The tax being proposed is based on conservative estimates of what services actually cost. This amount may go up by no more than the greatest of 5% or the CPI and must be established by Council annually. Where did the financial model come from and how does it work? The recommended flat rate of $440 per unit was arrived at by updating a fiscal model developed by David Taussig and Associates; discussion with other municipalities that have implemented such districts; and discussion with the City's third party financial consultant, MuniFinancial. Many of the basic assumptions in the model have not changed since Taussig prepared the model. The model calculates how much revenue is brought in by a new residence. It calculates the property tax, sales tax, franchise fees, recreation fees, and other revenues that the residence will bring into the City. It then calculates how much it will cost the City to provide services to the residence. The difference is the fiscal impact to the City. The service charge revenues, police officer salary figures, multiplier costs, and other date sensitive information were updated to reflect current revenues and costs. Why are all homes paying the same tax? h The model was run for various home prices. As you would expect, homes in the higher price range had a lower negative fiscal impact to the City, with the very high priced homes being a net revenue generator for the City. Conversely, the workforce housing and lower income homes had a very high negative fiscal impact on the City. Because a sliding scale assessment based on the fiscal impact of the home would require those that can least afford it to pay the most, while the wealthier residents pay next to nothing, staff looked at other options available to the City. After discussing Community Facilities Districts with other cities such as Elk Grove, and with consultants from MuniFinancial and David Taussig & Associates, staff decided to run the model for a home at the December 2004 median home price of $420,000.This practice is not unique to Atascadero and is common throughout the state. Based on the model, each new $420,000 unit costs the City $433.54. An additional $6.46 (1.5% of the tax) was added to this cost for District administration, to arrive at a flat $440 for each residential unit. How does the tax impact low-income residents? Concerns have been expressed regarding charging this tax on low-income units. The issue is that most low-income families will be stretched in order to qualify to purchase a low-income unit and that adding the charge on top of normal property taxes will make the home unattainable. Because of these concerns, staff is proposing that low-income properties be exempt from paying the annual tax. This would be done through a very simple application process, so that once a unit is no longer restricted to low-income households, it would then become subject to the tax. 191 ITEM NUMBER: B—1 (c)(f) DATE: 05/24/05 i Will other properties be annexed to the District in the future? Yes. Other provisions of the proposed district include the ability for other types of property to eventually annex into the District at some future time. The Rate and Method of Apportionment (RMA) sets forth amounts for Approved Property, Non-Residential Property, and Undeveloped Property. These provisions are built into the RMA for potential future use and staff currently anticipates collecting these taxes. How is the CFD formed? What is the Process? Formation of a Community Facilities District is a multi-step process, and requires a vote of the property owners within the District. Three Resolutions were adopted April 12, 2005: adopting the boundary map for the District (Resolution #2005-033); giving notice of intent to establish the community facilities district and authorizing the levy of a special tax (Resolution #2005-034); and ordering the preparation of a Community Facilities District Report (Resolution #2005-035). Tonight before Council are three additional Resolutions. The first Resolution (Draft Resolution A), officially establishes the Community Facilities District. The second Resolution (Draft Resolution B), calls a special election, and submits to the property owners within the District, propositions regarding the annual levy of special taxes within the Community Facilities District to finance police services, fire protection and suppression services, and park services, and establishes an appropriations limit. The last resolution (Draft Resolution C), declares the results of the special election, and authorizes the recording of the notice of special tax lien. After these three resolutions have been adopted, the last step in the process is to 'record the notice of special tax lien. Conclusion: Woodridge/Los Lomas, DeAnza and the Colony at Apple Valley were all conditioned to be fiscally neutral. Woodridge/Los Lomas was the only one of these three projects that had a fiscal analysis performed. (The fiscal analysis showed a $430 annual loss per unit). Each of these three projects has indicated that they would like to meet their fiscal neutrality condition through the formation of a Community Facilities District. FISCAL IMPACT: Annual taxes of $440 per unit for each new residential unit with the Woodridge/Los Lomas, Colony at Apple Valley and DeAnza developments will result in new annual revenues of approximately $155,000. 192 ITEM NUMBER: B—1 (c)(f) DATE: 05/24/05 ALTERNATIVES: Require the developer to meet the fiscal neutrality condition of approval through some other mechanism. ATTACHMENTS: 1. Draft Resolution A- for the Formation of Community Facilities District No. 2005- 1 (Public Services). 2. Draft Resolution B- Calling a Special Election and Submitting to the Voters of City Of Atascadero Community Facilities District No. 2005-1 (Public Services) Propositions Regarding the Annual Levy of Special Taxes within the Community Facilities District to Finance Police Services, Fire Protection and Suppression Services, and Park Services therein, and the Establishment of an Appropriations Limit. 3. Draft Resolution C- Declaring the Results of the Special Elections for City of Atascadero Community Facilities District No. 2005-1 (Public Services), County of San Luis Obispo, State Of California, on the Propositions with Respect to (i) the Annual Levy of Special Taxes, and (ii) the Establishment of an Appropriations Limit and Authorizing the Recordation of the Notice of Special Tax Lien. 4. Community Facilities District No. 2005-1 (Public Services) Special Report 5. Fiscal Analysis Model for$420,000 Residential Unit 193 DRAFT RESOLUTION A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ATASCADERO, CALIFORNIA, FOR THE FORMATION OF COMMUNITY FACILITIES DISTRICT NO. 2005-1 (PUBLIC SERVICES) WHEREAS, the City Council of the City of Atascadero, California, adopted a Resolution of Intention to Establish a Community Facilities District (Resolution#2005-034), stating its intention to form Community Facilities District No. 2005-1 (Public Services) (the "District"), of the City pursuant to Chapter 2.5 of Part 1 of Division 2 of Title 5, commencing with Section 53311, of the California Government Code (hereafter referred to as the "Act"); and, WHEREAS, Resolution #2005-034, incorporating a map of the proposed boundaries of the District and stating the services to be provided, the estimated cost of providing such services, and the rate and method of apportionment of the special tax to be levied within the District to pay for the services, is on file with the City Clerk and the provisions thereof are incorporated herein by this reference as if fully set forth herein; and, WHEREAS, on this date, this Council held a noticed public hearing as required by the Act and Resolution#2005-034 relative to the proposed formation of the District; and, WHEREAS, at the hearing all interested persons desiring to be heard on all matters pertaining to the formation of the District, the services to be provided therein and the levy of such special tax were heard and a full and fair hearing was held; and, WHEREAS, at the hearing evidence was presented to this Council on such matters before it, including a special report (the "Report") as to the services to be provided through the District and the costs thereof, a copy of which is on file with the City Clerk, and this Council at the conclusion of said hearing is fully advised in the premises; and, WHEREAS, written protests with respect to the formation of the District, the furnishing of specified types of services and the rate and method of apportionment of the special taxes have not been filed with the City Clerk by fifty percent (50%) or more of the registered voters residing within the territory of the District or property owners of one-half(1/2) or more of the area of land within the District and not exempt from the proposed special taxes; and, WHEREAS, the special tax proposed to be levied in the District to pay for the proposed services has not been eliminated by protest by fifty percent (50%) or more of the registered voters residing within the territory of the District or the owners of one-half (1/2) or more of the area of land within the District and not exempt from the special taxes. NOW, THEREFORE,BE IT RESOLVED, by the City Council of the City of Atascadero SECTION 1. The foregoing recitals are true and correct. 194 Draft Resolution A Page Two SECTION 2. On this date, pursuant to notice thereof duly given as provided by law, the City Council held a public hearing with respect to the establishment of the District and the annual levying of specified special taxes on taxable property within the District to pay for public services for the District as described in Section 7 hereof. SECTION 3. The proposed special tax to be levied within the District has not been precluded by majority protest pursuant to section 53324 of the Act. SECTION 4. All prior proceedings taken by this City Council in connection with the establishment of the District and the levy of the special tax have been duly considered and are hereby found and determined to be valid and in conformity with the Act. SECTION 5. The community facilities district designated "City of Atascadero Community Facilities District No. 2005-1 (Public Services)" of the City is hereby established pursuant to the Act. SECTION 6. The boundaries of the District, as set forth in the map of the District heretofore recorded in the San Luis Obispo County Recorder's Office on May 9, 2005, in Book 5 at Pages 11 .through 13 as Document 2005-037685 of Maps of Assessment and Community Facilities Districts, are hereby approved, are incorporated herein by reference and shall be the boundaries of the District. SECTION 7. The type of public services proposed to be financed by the District and pursuant to the Act shall consist of those items shown in Exhibit A hereto and by this reference incorporated herein (the "Services"). SECTION 8. Special Tax. a. ' Except to the extent that funds are otherwise available to the , District to pay for the Services, a special tax (the "Special Tax") sufficient to pay the costs thereof, secured by the recordation of a continuing lien against all non-exempt real property in the District, is intended to be levied annually within the District, and collected in the same manner as ordinary ad valorem property taxes or in such other manner as may be prescribed by this Council. b. The proposed rate and method of apportionment of the Special Tax among the parcels of real property within the District, in sufficient detail to allow each landowner within the proposed District to estimate the maximum amount such owner will have to pay, are shown in Exhibit B attached hereto and hereby incorporated herein. 195 Draft Resolution A Page Three SECTION 9. The Report is hereby approved and is made a part of the record of the public hearing regarding the formation of the District, and is ordered to be kept on file with the Clerk of the City as part of the transcript of these proceedings. SECTION 10. It is hereby found and determined that the Services are necessary to meet increased demands placed upon local agencies, including the City, as the result of development occurring in the District. SECTION 11. The Administrative Services (Finance) Director of the City of Atascadero, City Hall, 6905 El Camino Real, Ste. 6, Atascadero, CA 93422, telephone number (805) 461-5000 ext. 3428, is the officer of the City who will be responsible for preparing annually a current roll of the levy of the Special Tax obligations by assessor's parcel number and who will be responsible for estimating future levies of the Special Tax. SECTION 12. Upon recordation of a notice of special tax lien pursuant to Section 3114.5 of the California Streets and Highways Code, a continuing lien to secure each levy of the Special Tax shall attach to all nonexempt real property in the District and this lien shall continue in force and effect until the Special Tax obligation is prepaid and permanently satisfied and the lien canceled in accordance with law or until collection of the Special Tax by the City ceases. SECTION 13. In accordance with the Act, the annual appropriations limit, as defined by subdivision (h) of Section 8 of Article XIII B of the California Constitution, of the District is hereby preliminarily established at $4,000,000 and such appropriations limit shall be submitted to the voters of the District as hereafter provided. The proposition establishing such annual appropriations limit shall become effective if approved by the qualified electors voting thereon and shall be adjusted in accordance with the applicable provisions of the Act and the Constitution. SECTION 14. The voting procedures to be followed in conducting the special elections on (i)the proposition of the annual levy of the Special Tax and (ii) the proposition with respect to the establishment of an appropriations limit for the District in the amount of $4,000,000, if the District is established and such special elections (the "Special Elections") are held, shall be as follows: 196 Draft Resolution A Page Four a. If at least 12 persons have been registered to vote within the territory of the District for each of the 90 days preceding the close of the public or protest hearing (the "protest hearing"), the vote in the Special Elections shall be by the registered voters of the District with each voter having one vote. In that event, the Special Elections shall be conducted by the Clerk, and shall be held on a date selected by the City Council in conformance with the provisions of Section 53326 of the California Government Code and pursuant to the provisions of the California Elections Code governing elections of cities, insofar as they may be applicable, and pursuant to said Section 53326 the ballots for the Special Elections shall be distributed to the qualified electors of the District by mail with return postage prepaid or by personal service, and the Special Elections shall be conducted as a mail ballot election. b. If 12 persons have not been registered to vote within the territory of the District for each of the 90 days preceding the close of the protest hearing, and pursuant to Section 53326 of the California Government Code, the vote is therefore to be by the landowners of the District, with each landowner of record at the close of the protest hearing having one vote for each acre or portion of an acre of land that he or she owns within the District, the Special Elections shall be conducted by the City Clerk pursuant Section 53326 of the California Government Code as follows: (i) The Special Elections shall be held on the earliest date, following the adoption by the City Council of the resolution of formation establishing the District pursuant to Section 53325.1 of the California Government Code, and a resolution pursuant to Section 53326 of said Code submitting the propositions with respect to: (i) the levy of special taxes to finance police services, fire protection and suppression services, and park services, and (ii) the establishing of an appropriations limit therefor to the qualified electors of the District, upon which such elections can be held pursuant to said Section 53326 which may be selected by the City Council, or such earlier date as the owners of land within the District and the Clerk agree and concur is acceptable. 197 Draft Resolution A Page Five (ii) Pursuant to said Section 53326, the Special Elections may be held earlier than 90 days following the close of the protest hearing if the qualified electors of the District waive the time limits for conducting the elections set forth in said Section 53326 by unanimous written consent and the Clerk concurs in such earlier election date as shall be consented to by the qualified electors. (iii) Pursuant to said Section 53326, ballots for the Special Elections shall be distributed to the qualified electors by the Clerk by mail with return postage prepaid, or by personal service. (iv) Pursuant to applicable sections of the California Elections Code governing the conduct of mail ballot elections of cities, and specifically Division 4 (commencing with §4000 of the California Elections Code with respect to elections conducted by mail), the Clerk shall mail (or deliver) to each qualified elector an official ballot in a form specified by the City Council in the resolutions calling the Special Elections, and shall also mail to all such qualified electors a ballot pamphlet and instructions to voter, including a sample ballot identical in form to the official ballot but identified as a sample ballot, an impartial analysis by Counsel to City pursuant to Section 9280, as amended, of said Code with respect to the ballot propositions contained in the official ballot, arguments and rebuttals, if any, pursuant to Sections 9281, as amended, to 9287, as amended, inclusive, and 9295, as amended, of said Code, a return identification envelope with prepaid postage thereon addressed to the Clerk for the return of voted official ballots, and a copy of the form of Resolution of Formation establishing the District, adopted by the City Council pursuant to Section 53325.1 of the California Government Code, and the exhibits thereto; provided, however, that such analysis and arguments may be waived with the unanimous consent of all the landowners, and in such event a finding regarding such waivers shall be made in the resolution adopted by the City Council calling the Special Elections. 198 Draft Resolution A Page Six (v) The official ballot to be mailed (or delivered) by the Clerk to each landowner shall have printed or typed thereon the name of the landowner and the number of votes to be voted by the landowner and shall have appended to it a certification to be signed by the person voting the official ballot which shall certify that the person signing the certification is the person who voted the official ballot, and if the landowner is other than a natural person, that he or she is an officer of or other person affiliated with the landowner entitled to vote such official ballot, that he or she has been authorized to vote such official ballot on behalf of the landowner, that in voting such official ballot it was his or her intent, as well as the intent of the landowner, to vote all votes to which the landowner is entitled based on its land ownership on the propositions set forth in the official ballot as marked thereon in the voting square opposite each such proposition, and further certifying as to the acreage of the landowner's land ownership within the District. (vi) The return identification envelope delivered by the Clerk to each landowner shall have printed or typed thereon the following: (i) the name of the landowner, (ii) the address of the landowner, (iii) a declaration under penalty of perjury stating that the voter is the landowner or the authorized representative of the landowner entitled to vote the enclosed ballot and is the person whose name " appears on the identification envelope, (iv) the printed name and signature of the voter, (v)the address of the voter, (vi)the date of signing and place of execution of said declaration, and (vii) a notice that the envelope contains an official ballot and is to be opened only by the Clerk. 199 Draft Resolution A Page Seven (vii) The instruction to voter form to be mailed by the Clerk to the landowners shall inform them that the official ballots shall be returned to the Clerk properly voted as provided thereon and with the certification appended thereto properly completed and signed in the sealed return identification envelope with the certification thereon completed and signed and all other information to be inserted thereon properly inserted not later than 7:00 p.m. on the date of the election, or immediately after the Resolution Calling the Special Election is adopted (viii) Upon receipt of the return identification envelopes which are returned prior to the voting deadline on the date of the elections, the Clerk shall canvass the votes cast in the Special Elections, and shall file a statement with the City Council as to the results of such canvass and the election on each proposition set forth in the official ballot. SECTION 15. Other property within the boundaries of the City may be annexed into the District upon the condition that parcels within that territory may be annexed only with the unanimous approval of the owner or owners of each parcel or parcels at the time that parcel or those parcels are annexed. SECTION 16. Pursuant to Section 53340 of the California Government Code, properties of entities of the state, federal and local governments or used for public rights of way or other public uses shall be exempt from the levy of special taxes of the District. SECTION 17. This resolution shall take effect upon its adoption. 200 Draft Resolution A Page Eight On motion by Council Member and seconded by Council Member , the foregoing Resolution is hereby adopted in its entirety on the following roll call vote: AYES NOES ABSENT: ADOPTED: CITY OF ATASCADERO By: Wendy Scalise,Mayor Attest: Marcia McClure Torgerson, C.M.C., City Clerk APPROVED AS TO FORM: Patrick L. Enright, City Attorney 201 ITEM NUMBER: DATE: DRAFT RESOLUTION A EXHIBIT A DESCRIPTION OF SERVICES POLICE AND FIRE SERVICES Police services and fire protection and suppression services (the "Services") of the City of Atascadero required to sustain the service delivery capability for emergency and non-emergency services to new growth areas of the City of Atascadero, including but not limited to, related facilities, equipment, vehicles, ambulances and paramedics, fire apparatus, services, supplies and personnel; provided, however, that any increases in special taxes for costs related to employee wages and benefits shall be limited as provided in the Rate and Method of Apportionment of the Special Taxes to fund such Services. PARK SERVICE Park services of the City of Atascadero required for the operation and maintenance of public parks. 202 ITEM NUMBER: DATE: DRAFT RESOLUTION A EXHIBIT B RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX 203 CITY OF ATASCADERO COMMUNITY FACILITIES DISTRICT NO. 2005-1 (PUBLIC SERVICES) RATE AND METHOD OF APPORTIONMENT A Special Tax of Community Facilities District No. 2005-1 (Public Services) of the City of Atascadero ("CFD") shall be levied on all Assessor's Parcels in the CFD and collected each Fiscal Year commencing in Fiscal Year 2005-06 in an amount determined by the City through the application of the rate and method of apportionment of the Special Tax set forth below. All of the real property in the CFD, unless exempted by law or by the provisions hereof, shall be taxed for the purposes, to the extent and in the manner herein provided. A. DEFINITIONS The terms hereinafter set forth have the following meanings: "Acre or Acreage" means the land area of an Assessor's Parcel as shown on an Assessor's Parcel Map, or if the land area isnot shown on an Assessor's Parcel Map, the land area shown on the applicable final subdivision map, other final map, other parcel map, other condominium plan, or functionally equivalent map or instrument recorded in the Office of the County Recorder. The square footage of an Assessor's Parcel is equal to the Acreage multiplied by 43,560. "Act" means the Mello-Roos Community Facilities Act of 1982, as amended, being Chapter 2.5, Part 1, Division 2 of Title 5 of the Government Code of the State of California. "Administrative Expenses" means the actual or estimated costs incurred by the City as administrator of the CFD to determine, levy and collect the Special Taxes, including salaries, benefits and overhead costs of City employees whose duties are directly related to administration of the CFD and the fees of consultants, legal counsel, the costs of collecting installments of the Special Taxes upon the general tax rolls, preparation of required reports; and any other costs required to administer the CFD as determined by the City. "Affordable Unit(s)" means dwelling units located on one or more Assessor's Parcels of Residential Property that are subject to deed restrictions, resale restrictions, and/or regulatory agreements recorded in favor of the City providing for affordable housing. Affordable Units will require annual application to the City for verification of their affordable housing status. The City will have the authority to approve and establish policies regarding Affordable Housing Dwelling Units and their status. Affordable dwelling units shall be classified as Affordable Units by the CFD Administrator in the chronological order in which the building permits for such property are issued. "Annual Escalation Factor" means the greater of, five percent (5%) or the annual percentage change in the Consumer Price Index (CPI) of"All Urban Consumers" for the San Francisco-Oakland-San Jose Area. April 12,2005 1 of 7 City ofAtascadero Community Facilities District No.2005-1 (Public Services) 204 "Approved Property" means an Assessor's Parcel and/or Lot in the District,which has a Final Map recorded prior to January 1st preceding the Fiscal Year in which the Special Tax is being levied, but for which no building permit has been issued prior to the May 1" preceding the Fiscal Year in which the Special Tax is being levied. The term "Approved Property" shall apply only to Assessors' Parcels and/or Lots,which have been subdivided for the purpose of residential or commercial development, excluding any Assessor's Parcel that is designated as a remainder parcel determined by final documents and/or maps available to the CFD Administrator. "Assessor's Parcel" means a lot or parcel shown in an Assessor's Parcel Map with an assigned assessors parcel number. "Assessor's Parcel Map" means an official map of the Assessor of the County designating parcels by assessors parcel number. "Base Year" means Fiscal Year ending June 30, 2006. "CFD Administrator" means an official of the City, or designee thereof, responsible for determining the Special Tax Requirement and providing for the levy and collection of the Special Taxes. "CFD" means Community Facilities District No. 2005-1 (Public Services) of the City of Atascadero. "City" means the City of Atascadero. "Council" means the City Council of the City of Atascadero, acting as the legislative body of the CFD. "County" means the County of San Luis Obispo, California. "Developed Property" means all Taxable Property, exclusive of Property Owner Association Property, or Public Property, for which a building permit was issued after July 1, 2004 and prior to May 1 st preceding the Fiscal Year in which the Special Tax is being levied. "Final Map" means an Assessor's Parcel Map, a final subdivision map, other parcel map, other final map, other condominium plan, or functionally equivalent map that has been recorded in the Office of the County Recorder. "Fiscal Year" means the period starting July 1 and ending on the following June 30. "Land Use Class" means any of the classes listed in Table 1. "Lot" means property within a recorded Final Map identified by a lot number for which a building permit has been issued or may potentially be issued. "Maximum Special Tax" means the maximum Special Tax, determined in accordance with Section C below that can be levied in the CFD in any Fiscal Year on any Assessor's Parcel. "Multi-Family Residence" means all Assessor's Parcels of Developed Property for which a building permit has been issued for a residential structure consisting of two or more residential units that share common walls, including, but not limited to, duplexes, triplexes, townhomes, condominiums, apartment units, and secondary units as defined in Ordinance No. 454. April 12,2005 2 of 7 City ofAtascadero Community Facilities District No.2005-1 (Public Services) 205 "Non-Residential Property" means all Assessor's Parcels of Developed Property for which a building permit(s) has been issued for a non-residential use and does not contain any residential units as defined under Residential Property or Multi-Family Property. "Park Services" means the estimated and reasonable costs for maintaining authorized parks within the City. "Property Owner Association Property" means any property within the boundaries of the CFD that is owned by, or irrevocably dedicated as indicated in an instrument recorded with the County Recorder to, a property owner association, including any master or sub-association. "Proportionately" means in a manner such that the ratio of the actual Special Tax levy to the Maximum Special Tax is equal for all Assessor's Parcels within each Land Use Class. "Public Property" means any property within the boundaries of the CFD that is, at the time of the CFD formation or at the time of an annexation, expected to be used for rights-of-way, parks, schools or any other public purpose and is owned by or irrevocably offered for dedication to the federal government, the State, the County, the City or any other public agency. "Public Safety Costs" means the estimated and reasonable costs of providing Public Safety services,including but not limited to (i) the costs of contracting for police and fire services, (ii) related facilities, equipment, vehicles, ambulances and paramedics, fire apparatus, supplies, (iii) the salaries and benefits of City staff if the City directly provides police and fire protection services, and (iv) City overhead costs associated with providing such services within the CFD. The Special Tax provides only partial funding for Public Safety. "Residential Unit" means any residence in which a person or persons may live, which comprises an independent facility capable of conveyance separate from adjacent residential dwelling units and is not considered to be for commercial or industrial use. This includes Single-Family Residence and Multi-Family Residence. "Single-Family Residence " means all Assessor's Parcels of Developed Property for which a building permit(s) has been issued for purposes of constructing one residential dwelling unit. "Special Tax" means the Special Tax to be levied in each Fiscal Year on each Assessor's Parcel of Taxable Property to fund the Special Tax Requirement, and shall include Special Taxes levied or to be levied under Sections C and D, below. "Special Tax Requirement" means that amount required in any Fiscal Year for the CFD to: (i) pay for Public Safety Costs; (ii) pay for Park Services; (iii) pay reasonable Administrative Expenses; (vi) pay any amounts required to establish or replenish any reserve funds; and (v) pay for reasonably anticipated delinquent Special Taxes based on the delinquency rate for Special Taxes levied in the previous Fiscal Year;less less any surplus of funds available from the previous Fiscal Year's Special Tax levy. "State" means the State of California. April 12,2003 3 of 7 City ofAtarcadem Community Facilities District No.2003-1 (Public Services) 206 Taxable Property means all of the Assessors Parcels within the boundaries of the CFD that are not exempt from the Special Tax pursuant to law or as defined below. "Tax-Exempt Property" means an Assessor's Parcel not subject to the Special Tax. Tax-Exempt Property includes: (i) Public Property, (ii) Property Owner Association Property, and (iii) property designated by the City or CFD Administrator as Tax- Exempt Property. "Undeveloped Property" means, for each Fiscal Year, all Taxable Property not classified as Developed Property or Approved Property, including an Assessor's Parcel that is designated as a remainder parcel and is .not identified as potential Public Property by any final document and/or maps available to the CFD Administrator. B. ASSIGNMENT TO LAND USE CATEGORIES Each Fiscal Year using the definitions above, all Taxable Property within the CFD shall be classified as Developed Property, Approved Property, Non-Residential Property, or Undeveloped Property. Developed Property shall further be classified as Residential Units as specified in Table 1 and shall be subject to Special Taxes pursuant to Sections C and D below. C. MAXIMUM SPECIAL TAX RATE 1. Developed Property TABLE 1 Maximum Special Tax for Developed Property Community Facilities District No. 2005-1 (Public Services) Land Use Maximum Special Tax Class Description Per Unit 1 Residential Units $440 per Unit 2 Affordable Units $0 per Unit On each July 1 following the Base Year, the Maximum Special Tax Rates shall be increased in accordance with the Annual Escalation Factor. April 12,2005 4 of 7 City qfAtascadero Community Facilities District No.2005-1 (Public Services 207 2. Approved Property TABLE 2 Maximum Special Tax for Approved Property Community Facilities District No. 2005-1 (Public Services) Land Use Maximum Special Tax Class Description Per Lot 3 Approved Property $231 per Lot On each July 1 following the Base Year, the Maximum Special Tax Rate shall be increased in accordance with the Annual Escalation Factor. 3. Non-residential Property TABLE 3 Maximum Special Tax for Non-Residential Property Community Facilities District No. 2005-1 (Public Services) Land Use Maximum Special Tax Class Description Per Acre 4 Non-Residential Property $1,848 per Acre The minimum special tax Non-Residential Property shall be sub)ect to is $50 per parcel. On each July 1 following the Base Year, the Maximum Special Tax Rate for Non-Residential Property shall be increased in accordance with the Annual Escalation Factor. 4. Multiple Land Use Classes In some instances an Assessor's Parcel may contain more than one Land Use Class. The Maximum Special Tax levied on an Assessor's Parcel shall be the sum of the Maximum Special Tax levies that can be imposed on all Land Use Classes located on that Assessor's Parcel. 5. Undeveloped Property Undeveloped Property will be assigned a Maximum Special Tax Rate of $410 per acre or portion thereof,with a minimum rate of$100 for Undeveloped Property less than or equal to one-forth (1/4) of an Acre as described in Table 4 April 12,2005 5 of 7 City ofAtascadero Community Facilities District No.2005-1 (Public Services) 208 TABLE 4 Maximum Special Tax for Undeveloped Property Community Facilities District No. 2005-1 (Public Services) Land Use Maximum Special Tax Class Description Per Parcel/Acre 5 Undeveloped Property 1/4 $100 per Parcel Acre 6 Undeveloped Property $410 per Acre >1/4 Acre On each July 1 following the Base Year, the Maximum Special Tax Rate, for Undeveloped Property, shall be increased in accordance with the Annual Escalation Factor D. METHOD OF APPORTIONMENT OF THE SPECIAL TAX Commencing with Fiscal Year 2005-06, and for each following Fiscal Year, the CFD Administrator shall calculate the Special Tax Requirement based on the definitions in Section A and levy the Special Tax until the amount of the Special Tax levied equals the Special Tax Requirement. The Special Tax shall be levied each Fiscal Year on each Assessor's Parcel of Developed Property Proportionately between Residential Units up to 100% of the applicable Maximum Special Tax. Second, if the Special Tax Requirement has not been satisfied by the first step, then the Special Tax shall be levied each Fiscal Year on each Assessor's Parcel of Approved Property up to 100% of the applicable Maximum Special Tax for Approved Property. Third, if the first two steps have not satisfied the Special Tax Requirement, then the Special Tax shall be levied each Fiscal Year on each Assessor's Parcel of Non-Residential Property up to 100% of the applicable Maximum Special Tax for Non-Residential Property. Lastly, if the preceding steps have not satisfied the Special Tax Requirement, then the Special Tax shall be levied each Fiscal Year on each Assessor's Parcel of Undeveloped Property up to 100% of the applicable Maximum Special Tax for Undeveloped Property. April 12,2005 6 of 7 City ofAtascadero Community Facilities District No.2005-1 (Public Services) 209 E. APPEALS Any taxpayer that believes that the amount of the Special Tax assigned to a Parcel is in error may file a written notice with the CFD Administrator appealing the levy of the Special Tax. This notice is required to be filed with the CFD Administrator during the Fiscal Year the error is believed to have occurred. The CFD Administrator or designee will then promptly review the appeal and, if necessary, meet with the taxpayer. If the CFD Administrator verifies that the tax should be changed the Special Tax levy shall be corrected and, if applicable in any case, a refund shall be granted. F. MANNER OF COLLECTION Special Tax as levied pursuant to Section D above shall be collected in the same manner and at the same time as ordinary ad valorem property taxes; provided, however, that the CFD Administrator may directly bill the Special Tax, may collect Special Taxes at a different time or in a different manner if necessary to meet the financial obligations of the CFD or as otherwise determined appropriate by the CFD Administrator. G. TERM OF SPECIAL TAX The Special Tax shall be levied in perpetuity or until such time as Council terminates the Special Tax. April 12,2005 7 of 7 City ofAtascadero Community Facilities District No.2005-1 (Public Services) 210 DRAFT RESOLUTION B RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ATASCADERO, CALIFORNIA, CALLING A SPECIAL ELECTION AND SUBMITTING TO THE VOTERS OF CITY OF ATASCADERO COMMUNITY FACILITIES DISTRICT NO. 2005-1 (PUBLIC SERVICES) PROPOSITIONS REGARDING THE ANNUAL LEVY OF SPECIAL TAXES WITHIN THE COMMUNITY FACILITIES DISTRICT TO FINANCE POLICE SERVICES, FIRE PROTECTION AND SUPPRESSION SERVICES, AND PARK SERVICES THEREIN, AND THE ESTABLISHMENT OF AN APPROPRIATIONS LIMIT WHEREAS, pursuant to Section 53325.1 of the California Government Code the City Council (the "City Council") of the City of Atascadero, California (the "City"), has adopted the resolution of formation for the City of Atascadero Community Facilities District No. 2005-1 (Public Services), County of San Luis Obispo, State of California (the "District"), establishing the District and the boundaries thereof("Draft Resolution A"); and, WHEREAS, by that resolution, the City Council called special elections on the propositions to be submitted to the voters of the District with respect to the formation of the District and the levy of special taxes therein for the financing of police services, fire protection and suppression services, and park services within the District; and, WHEREAS, p ursuant to Section 53326 of the California Government Code, it is necessary that the City Council submit to the voters of the District the annual levy of special taxes on taxable property within the District; and, WHEREAS, pursuant to Section 53325.7 of the California Government Code and the provisions of the Code, the City Council may also submit to the voters of the District a proposition for the establishment of an appropriations limit for the District; and, WHEREAS, the City Clerk has advised the City Council that she has received a statement from the Registrar of Voters of the County of San Luis Obispo that no persons are registered to vote in the territory of the District. 211 Draft Resolution B Page Two NOW, THEREFORE,BE IT RESOLVED, by the City Council of the City of Atascadero SECTION 1. The City Council finds that: (i) the foregoing recitals are true and correct; (ii) 12 persons have not been registered to vote within the territory of the District for each of the 90 days preceding the close of the public hearing on May 24, 2005; (iii) pursuant to Section 53326 of the California Government Code, as a result of the findings set forth in clause (ii) above, the vote in the special election called by this resolution shall be by the landowners of the District whose property would be subject to the special taxes if they were levied at the time of the election, and each landowner shall have one vote for each acre, or portion thereof, which he or she owns within the District which would be subject to the proposed special taxes if they were levied at the time of the election; (iv) the owners of all of the land in the District by written consent (a) waived the time limits set forth in Section 53326 of the California Government Code for holding the election called by this resolution and the election on the propositions, (b) consented to the holding of the election on May 24, 2005, (c) waived notice and mailed notice of the time and date of the election, (d) waived an impartial analysis by the City Attorney of the ballot propositions pursuant to Section 9280 of the California Elections Code and arguments and rebuttals pursuant to Sections 9281 to 9287, inclusive, and 9295 of that Code, and mailing of a statement pursuant to Section 9401 of that Code, and (e) waived a synopsis of the measures to be included in the official ballot for said elections pursuant to Section 12111 of that Code; and (v) the City Clerk (the "City Clerk") has consented to the holding of the election on May 24, 2005. SECTION 2. The City Council hereby calls and schedules an election for May 24, 2005, on the proposition of the annual levy of special taxes on taxable property within the District to finance police services, fire protection and suppression services, and park services within the District, and on the proposition of the establishment of an appropriations limit for the District. SECTION 3. The propositions to be submitted to the voters of the District at such special election shall be.as follows: Proposition A: Shall special taxes be levied annually on taxable property within the City of Atascadero Community Facilities District No. 2005-1 (Public Services), County of San Luis Obispo, State of California (the "CFD"); and to levy and collect such special taxes so long as the special taxes are needed to pay for police services, fire protection and suppression services, and park services at the special tax rates and pursuant to the method of apportioning the special taxes set forth in Exhibit `B" to the Resolution of Intention adopted by the City Council of the City of Atascadero on April 12, 2005? Proposition B: Shall an appropriations limit, as defined by subdivision (h) of Section 8 of Article XIIIB of the California Constitution, be established for the City of Atascadero Community Facilities District No. 2005-1 (Public Services), County of San Luis Obispo,State of California, in the amount of$4,000,000? 212 Draft Resolution B Page Three SECTION 4. Except as otherwise provided in Section 6 hereof, the consolidated special elections shall be conducted by the City Clerk in accordance with the provisions of the California Elections Code governing mail ballot elections of cities, and in particular the provisions of Division 4 (commencing with Section 4000), of that Code, insofar as they may be applicable. SECTION 5. The procedures to be followed in conducting the consolidated special elections on (i) the proposition with respect to the levy of special taxes on taxable property within the District to pay for police and fire services within the District, and (ii) the proposition with respect to the establishment of an appropriations limit for the District in the amount of $4,000,000, shall be as follows: a. Pursuant to Section 53326 of the California Government Code, ballots for the Special Elections shall be distributed to the qualified electors by the City Clerk by mail or by personal service. b. Pursuant to applicable sections of the California Elections Code governing the conduct of mail ballot elections of cities, and in particular Division 4 (commencing with Section 4000) of that Code with respect to election conducted by mail, the City Clerk, or designated official shall mail or deliver to each qualified elector an official ballot in the appropriate form attached hereto as Exhibit "A," and shall also mail or deliver to all such qualified electors a ballot pamphlet and instructions to voter, including a sample ballot identical in form to the official ballot but identified as a sample ballot, a return identification envelope addressed to the City Clerk for the return of voted official ballots and a copy of the Resolution of Formation adopted by the City Council on May 24, 2005. c. The official ballot to be mailed or delivered by the City Clerk to each " landowner-voter, shall have printed or typed thereon the name of the landowner-voter and the number of votes to be voted by the landowner-voter, and shall have appended to it a certification to be signed by the person voting the official ballot which shall certify that the person signing the certification is the person who voted the official ballot, and if the landowner-voter is other than a natural person, that he or she is an officer of or other person affiliated with the landowner-voter entitled to vote such official ballot, that he or she has been authorized to vote such official ballot on behalf of the landowner-voter, that in voting such official ballot it was his or her intent, as well as the intent of the landowner-voter, to vote all votes to which the landowner-voter is entitled based on its land ownership on the propositions set forth in the official ballot as marked thereon in the voting square opposite each such proposition, and further certifying as to the acreage of the landowner-voter's land ownership within the District. 213 Draft Resolution B Page Four d. The return identification envelope mailed or delivered by the City Clerk to each landowner-voter shall have printed or typed thereon the following: (i) the name of the landowner, (ii) the address of the landowner, (iii) a declaration under penalty of perjury stating that the voter is the landowner or the authorized representative of the landowner entitled to vote the enclosed ballot and is the person whose name appears on the identification envelope, (iv) the printed name and signature of the voter, (v) the address of the voter, (vi) the date of signing and place of execution of the declaration, and (vii) a notice that the envelope contains an official ballot and is to be opened only by the City Clerk. e. The information to voter form to be delivered by the City Clerk to the landowner-voters shall inform them that the official ballots shall be returned to the City Clerk properly voted as provided thereon and with the certification appended thereto properly completed and signed in the sealed return identification envelope with the certification thereon completed and signed and all other information to be inserted thereon properly inserted by 7:00 p.m. on the 24th day of May 2005; provided that if all qualified electors have voted, the elections shall be closed with the concurrence of the City Clerk. f. Upon receipt of the return identification envelopes, which are P P p returned prior to the voting deadline on the date of the elections, the City Clerk shall canvass the votes cast in the election, and shall file a statement with the City Council as to the results of such canvass and the election on each proposition set forth in the official ballot. 214 Draft Resolution B Page Five On motion by Council Member and seconded by Council Member ,the foregoing Resolution is hereby adopted in its entirety on the following roll call vote: AYES: NOES: ABSENT: ADOPTED: CITY OF ATASCADERO By: Wendy Scalise,Mayor Attest: Marcia McClure Torgerson, C.M.C.,City Clerk APPROVED AS TO FORM: Patrick L. Enright, City Attorney 215 DRAFT RESOLUTION B EXHIBIT A f ': 4 OFFICIAL BALLOT a - SPECIAL ELECTION City of Atascadero Community Facilities District No. 2005-1 (PUBLIC SERVICES) This ballot is for a special landowner election. You must return this ballot in the enclosed postage paid envelope to the office of the City Clerk of the City of Atascadero no later than 5:00 p.m. On May 24, 2005, by mail or in person; or in person to the location of the public hearing no later than 7:00 pm on May 24, 2005. The City Clerk's office is located at 6905 El Camino Real, Atascadero, California, 93422. The public hearing will be held at the Atascadero Lake Pavilion, 9315 Pismo Street, Atascadero, California. To vote, mark a cross (X) in the voting square after the word "YES" or after the word "NO". All marks otherwise made are forbidden and make the ballot void. If you wrongly mark, tear, or deface this ballot, return it to the City Clerk of the City of Atascadero to obtain a replacement ballot. PROPOSITION A: Shall special taxes be levied annually on taxable Yes property within the City of Atascadero Community Facilities District ; ❑ No. 2005-1 (Public Services), County of San Luis Obispo, State of California (the "CFD"); and to levy and collect such special taxes so long as the special taxes are needed to pay for police services, fire No protection and suppression services, and park services at the special tax rates and pursuant to the method of apportioning the special taxes set forth in Exhibit `B" to the Resolution of Intention adopted by the City Council of the City of Atascadero on April 12, 2005? ---------------------------------------------------------------------------------------------;------------------ PROPOSITION B: Shall an appropriations limit, as defined by subdivision (h) of Section 8 of Article XIIIB of the California Yes ❑ Constitution, be established for the City of Atascadero Community Facilities District No. 2005-1 (Public Services), County of San Luis Obispo, State of California, in the amount of$4,000,000? i No El 216 DRAFT RESOLUTION C RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ATASCADERO, CALIFORNIA, DECLARING THE RESULTS OF THE SPECIAL ELECTIONS FOR CITY OF ATASCADERO COMMUNITY FACILITIES DISTRICT NO. 2005-1 (PUBLIC SERVICES), COUNTY OF SAN LUIS OBISPO, STATE OF CALIFORNIA, ON THE PROPOSITIONS WITH RESPECT TO (i) THE ANNUAL LEVY OF SPECIAL TAXES, AND (ii) THE ESTABLISHMENT OF AN APPROPRIATIONS LIMIT AND AUTHORIZING THE RECORDATION OF THE NOTICE OF SPECIAL TAX LIEN WHEREAS, on May 24, 2005, the City Council (the "City Council") of the City of Atascadero, California (the "City") adopted a Resolution determining the necessity for City of Atascadero Community Facilities District No. 2005-1 (Public Services) (the 'District"), to finance police services, fire protection and suppression services, and park services, and calling a special election on the proposition of (i) the annual levy of special taxes on taxable property within the District to finance police services, fire protection and suppression services,and park services within the District, and (ii) the establishment of an appropriations limit for the District; and, WHEREAS, on May 24, 2005, the City Council also adopted a resolution calling a special election (the 'Election Resolution"), for submitting to the voters of the District the proposition with respect to the annual levy of special taxes on taxable property within the District to finance police services, fire protection and suppression services, and park services within the District, and the proposition with respect to the establishment of an appropriations limit for the District; and WHEREAS, the City Council has received a statement from the City Clerk (the "City Clerk"), who pursuant to the Election Resolution was authorized to conduct the special elections and act as the election official therefore, with respect to the canvass of the ballots returned in and the results of the special elections, certifying that more than two-thirds of the votes cast upon the propositions submitted to the voters in the special elections were cast in favor of approving all such propositions. 217 Draft Resolution C Page Two NOW, THEREFORE,BE IT RESOLVED, by the City Council of the City of Atascadero SECTION 1. The City Council finds that: (i) there were no persons registered to vote within the boundaries of the District at the time of the close of the protest hearing on April 12, 2005, and pursuant to Section 53326 of the California Government Code ("Section 53326") the vote in the special elections was, therefore, to be by the landowners owning land within the District, with each landowner having one vote for each acre or portion of an acre of land that he or she owned within the District which would have been subject to the special tax if levied at the time of the special elections; (ii) pursuant to Section 53326 and the Election Resolution, the City Clerk distributed the ballots for the special elections to the owners of all of the land included within the boundaries of the District (collectively the 'Property Owners") by overnight mail with return postage prepaid; (iii) the Property Owner waived the time limits for holding the special elections and the election dates specified in Section 53326, and consented to the calling and holding of the special elections on April 12, 2005; (iv) the special elections have been properly conducted in accordance with all statutory requirements and the provisions of the Election Resolution; (v) pursuant to Section 53326, the Property Owners, which owned approximately 169.43 acres, were entitled to a total of 172 votes; (vi) the ballot was returned to the City Clerk prior to 7:00 p.m. on May 24, 2005, by the Property Owner; (vii) the ballot returned to the City Clerk by the Property Owner voted all votes to which it was entitled in favor of all propositions set forth therein; (viii) more than two-thirds of the votes cast in the special elections on each such proposition were cast in favor thereof, and pursuant to Sections 53328 and 53329 of the California Government Code, all such propositions carried; (ix) the City may annually levy special taxes on taxable property within the District in amounts sufficient to finance police services, fire protection and suppression services, and park services within the District; and (xi) an appropriations limit for the District has been established in the amount of$4,000,000. SECTION 2. All votes voted in the special elections on the propositions with respect to the annual levy of special taxes on taxable property within the District to finance police services, fire protection and suppression services, and park services within the District; and thq establishment of an appropriations limit in the amount of $4,000,000 for the District were voted in favor thereof, and all such propositions carried. SECTION 3. The effect of the results of the special elections, as specified in Section 2 hereof, is that the City Council, as the legislative body of the District, is authorized to have the District to annually levy special taxes on taxable property within the District in an amount sufficient to finance police services, fire protection and suppression services, and park services within the District, at the special tax rates and pursuant to the methodology for determining and apportioning such special taxes which are set forth in Exhibit "B" to the Resolution of Intention adopted by the City Council on April 12, 2005, and an appropriations limit has been established for the District in the amount of$4,000,000. SECTION 4. Notice of Special Tax Lien. The City Clerk shall record a notice of special tax lien pursuant to Section 53328.3 of the California Government Code and Section 3114.5 of the California Streets and Highways Code. 218 Draft Resolution C Page Three On motion by Council Member and seconded by Council Member the foregoing Resolution is hereby adopted in its entirety on the following roll call vote: AYES: NOES: ABSENT: ADOPTED: CITY OF ATASCADERO By: Wendy Scalise, Mayor Attest: Marcia McClure Torgerson, C.M.C.,City Clerk APPROVED AS TO FORM: Patrick L. Enright, City Attorney 219 1 CITY OF ATASCADERO COMMUNITY FACILITIES DISTRICT NO. 2005-1 (PUBLIC SERVICES) REPORT May 24, 2005 i r Mmun-Winancial Corporate Office Office Locations Phoenix, AZ 27368 Via Industria Anaheim, CA Fresno, CA Suite 110 Oakland, CA Seattle,WA Temecula, CA 92590 Lancaster, CA Tel: (909) 587-3500 Los Angeles Regional Office Fax: (909) 587-3510 www.muni.com 220 CITY OF ATASCADERO CITY COUNCIL WENDY SCALISE, MAYOR TOM O'MALLEY, MAYOR PRO-TEM JERRY CLAY, SR., COUNCIL MEMBER GEORGE LUNA, COUNCIL MEMBER BECKY PACAS, COUNCIL MEMBER CITY MANAGER WADE G. MCKINNEY FINANCE DIRECTOR RACHELLE RICKARD 221 COMMUNITY FACILITIES REPORT CITY OF ATASCADERO COMMUNITY FACILITIES DISTRICT NO. 2005-1 (Public Services) TABLE OF CONTENTS PAGE INTRODUCTION........................................................................................................... 1 A. DESCRIPTION OF SERVICES AND FACILITIES .................................................2 B. BOUNDARIES OF COMMUNITY FACILITIES DISTRICT NO. 2005-1...............2 C. COST ESTIMATES FOR FACILITIES......................................................................3 D. RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAXES................3 E. GENERAL TERMS AND CONDITIONS.................................................................3 F. CONCLUSION...........................................................................................................3 EXHIBITA................................................................................................................... A-1 BOUNDARIES OF DISTRICT AND BOUNDARY MAP.........................................................................A-1 EXHIBITB ....................................................................................................................B-1 COSTESTIMATES...................................................................................................................................4.....B-1 EXHIBITC................................................................................................................... C-1 RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX.....................................................C-1 222 COMMUNITY FACILITIES DISTRICT REPORT CITY OF ATASCADERO COMMUNITY FACILITIES DISTRICT NO. 2005-1 (Public Services) INTRODUCTION WHEREAS, the City Council of the City of Atascadero (hereinafter referred to as the "Agency" or "legislative body of the local Agency"), in the State of California, did, pursuant to the provisions of the Mello-Roos Community Facilities Act of 1982, being Chapter 2.5 of Part 1, of Division 2, of Title 5 of the Government Code of the State of California, and specifically Section 53321.5 thereof, expressly order the filing of a written Community Facilities District Report ("Report") with the Agency for a proposed Community Facilities District, which Community Facilities District shall be referred to as Community Facilities District No. 2005-1 (Public Services), (hereinafter referred to as the "District"); and WHEREAS,the Report generally contains the following: a. a brief description of the Services b type which are required to adequately meet the P Y YP q q Y needs of the District; b. an estimate of the cost of financing the Services, as defined below, including incidental expenses, and all other related costs as provided for in Section 53345.3 of the Act, and including all costs associated with the creation of the District, determination of the amount of any special taxes, collection of any special taxes, or costs otherwise associated with the creation of the District, determination of the amount of any special taxes, collection of any special taxes, or costs otherwise incurred in order to carry out the authorized purposes of the Agency with respect to the District; C. the rate and method of apportionment of the special tax in sufficient detail to allow each property owner within the proposed District to estimate the maximum annual amount of payment. For particulars, reference is made to the Resolution of Intention, Resolution No. 2005-034 as previously approved. All capitalized terms not defined herein are defined in the Rate and Method of Apportionment of Special Tax attached as Exhibit "C". Page 1 City of Atascadero Community Facilities District No. 2005-1 (Public Services) 223 NOW THEREFORE MuniFinancial, the appointed responsible firm directed to prepare the Report, pursuant to the provisions of the Code, does hereby submit the following: A. DESCRIPTION OF SERVICES The District is being formed to mitigate the impact to the City of providing police services, fire protection and suppression services, and park services to new developments in various areas of the City. It is the City's intention to annex property into the District as new developments are approved. The services described below are to be financed by the District. Police and Fire Serices Police services and fire protection and suppression services of the City of Atascadero required to sustain the service delivery capability for emergency and non-emergency services to new growth areas of the City of Atascadero, including but not limited to, related facilities, equipment, vehicles, ambulances and paramedics, fire apparatus, services, supplies and personnel. Park Services: Park services of the City of Atascadero required for the operation and maintenance of public parks. B. BOUNDARIES OF COMMUNITY FACILITIES DISTRICT NO. 2005-1 The District is currently being established within the City of Atascadero, in the County of San Luis Obispo. The District boundaries are composed of three noncontiguous areas: Site 1, being the residential development known as Apple Valley located southwest of the intersection between Del Rio Road and Highway 101; Site 2, being the residential development known as De Anza, located east of Highway 101 and west of Templeton Road; and Site 3, being the residential development known as Woodridge located east of Viejo Camino, east of Halcon Road and west of the Salinas River. The boundaries of the District include all properties and parcels on which special taxes may be levied to pay for the costs and expenses of the services. The boundaries of the District are described within Exhibit "A", a reduced scale map entitled "Boundaries of City of Atascadero Community Facilities District No. 2005-1 (Public Page 2 City of Atascadero Community Facilities District No. 2005-1 (Public Services) 224 Services)" which is attached hereto and incorporated herein. A full-scale map is on file with the Clerk of the City of Atascadero and has been recorded with the County Recorder. C. COST ESTIMATES FOR SERVICES The District is being formed to mitigate the impact of providing the Services created by new development within the various areas of the City. It is estimated that special tax revenues generated from the District will generate a portion of the overall cost of implementing the Services within these areas. The initial Maximum Special Tax that may be levied annually is $440.00 per Unit for each Residential Unit, including single-family and multi-family units, $231.00 per Lot for each Assessor's Parcel of Approved Property, $1,848 per acre for Non- Residential Property, $100.00 per parcel for each Assessor's Parcel of Undeveloped Property that is less than or equal to one-fourth (1/4) of an acre, and $410 per acre for each Assessor's Parcel of Undeveloped Property that is greater than 1/4 of an acre. For a more detailed cost estimate, please refer to Exhibit "B". D. RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAXES The Resolution of Intention sets forth the rate and method of apportionment of the special tax, which allows each property owner within the proposed CFD to estimate the annual amount that would be required for payment if a special tax were levied. A method of apportionment and supplemental billing are outlined in the rate and method of apportionment. For particulars of the rate and method of apportionment, see Exhibit "C", Rate and Method of Apportionment of Special Tax. E. GENERAL TERMS AND CONDITIONS Services The description of the Services, as set forth herein, is general in nature. The final nature of the services will be determined upon the approval of services. F. CONCLUSION Based on information provided by, and discussions with, the Agency and the property owners, the Services listed in this Report are those that are necessary to meet increased demands placed on the Agency as a result of development occurring within the boundaries of the City of Atascadero. Further, it is my opinion that the special tax rate and method of Page 3 City of Atascadero Community Facilities District No. 2005-I (Public Services) 225 apportionment as set forth in "Exhibit C" is equitable and is not discriminatory or arbitrary and permits a purchaser of property subject to the special tax a fair means of determining his or her obligation. MuniFinancial By: Chris Fisher Principal Consultant Page 4 City of Atascadero Community Facilities District No. 2005-1 (Public Services) 226 EXHIBIT.A BOUNDARIES OF DISTRICT AND BOUNDARY MAP Boundaries of District: The exterior boundaries of the District will be shown on that certain map to be kept on file in the Office of the City Clerk entitled "Boundaries of City of Atascadero Community Facilities District No."2005-1 (Public Services)". This map indicates, by a boundary line, the extent of the territory included in the proposed District and shall govern for all details as to the extent of the District. The parcels of real property within the District are described more particularly on the Assessor Parcel Maps that are on file in the office of the San Luis Obispo County Assessor or on Maps filed with the County Recorder in connection with lot line adjustments and are incorporated into this Report by reference. Boundary Map: A reduced copy of the boundary map follows. The original of such map has been recorded in the records of the County Recorder, County of San Luis Obispo, State of California, recorded May 9, 2005, as Document Number 2005-037685, in Book 5 Page(s) 11-13, of Maps of Assessment and Community Facilities Districts and kept on file in the Office of the City Clerk, following its approval by the City Council. Site Location: The District boundaries are composed of three noncontiguous areas. Site 1 known as the Apple Valley development, is southwest of Del Rio Road and Highway 101. Site 2 known as the De Anza development, is east of Highway 101 and west of Templeton Road. Site 3 known as the Woodridge development, is east of Viejo Camino, east of Halcon Road and west of the Salinas River. The boundaries of the District include all properties and parcels on which special taxes may be levied to pay for the costs and expenses of the services Page A-1 City ofAtascadero Community Facilities District No. 2005-1 (Police and Fire Services) 227 EXHIBIT A BOUNDARY MAP MuniFinancial PageA-2 City ofAtascadero Community Facilities District No. 2005.1 (Public Services 228 Cl n J Y O 001 Z G o � �ul'�ome svyi� m �I m z �• Om JNN ONS �� d H� mmm�no� z mo UUINNN K (� C m z z � � .Z1 m K Om C: o RIO o U > C � C90(/)Z, o"x C7 rn p ��n Z D IA OC) rn C Tn rn O zoo N V/ m 5w m mho rn o z 44i DyonQt-n rCm O g mi orm $��8 zs mq m ii Nif O yC �Z ....0w An9 N Dom},! DV�iT m O .O o� pz' j.m6 om� g M mtrAn g 20 '� m zo �Li alnA p oA oo�yx m m z D O Cmo m n yO Vpm1 Dv�Oti T Vziz 0 0. 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D�0 (-) DC7 O O� o ) C-) Z O 0 '�N r O E� cn � V D m a� C� O m N m .a2 © W + r ro m a O z � o v m s v $ " 0 m m z o m z z N ; A m < o (n p m _ m � m N 0 m W 230 FCC O "" � UAiANUN DI�/1 I+ m�Q ��" j O.U..r R S. Gy p& \J I l I to l 1-ti OM �1• O O p N 0 BVI "-w V O O L'J co z r C -p D W 0 m cnzn Cn0 o a�-j W r C moo r_IZ o" ' C7 m 0 s v ^yD (n D N � ozN m � HALCON o c c� <0 m zNm � N Z J R0 Dmo n� O o m- - 1 m < D w o .moi a 0 y9� Z c� O tics O R� 0 0 o Ln O y N O ALONDRA N 6 �f'p Sd��ds N a��a 9G 2 g gin 0 o 0 rn 1 0 8 N 8 = LI 0 LI 231 EXHIBIT B COST ESTIMATES The budget below represents the maximum estimated annual cost of Services in current year dollars assuming all properties are developed to the maximum number of lots specified in the approved d Tentative Maps. The Special Tax was calculated as the amount necessary to pay for PP P P the C FD 2005 dollars proportionate s ro ortionate share of the services below based on , which are in addition to the services already provided to the area before the District was created. The revenue split between police services, fire services and park services is based on certain determinations by the City for Fiscal Year 2005-06 and may change over time. Budget Estimated Annual Costs Police Services $65,571 Fire Protection and Suppression Services $65,571 Park Services $14,571 Administration ' $9,606 Total Annual Budget $155,320 1 Administration includes annual city administration costs and district formation costs. This budget may increase annually by the greater of, five percent (5%) or the annual percentage change in the Consumer Price Index (CPI) of "All Urban Consumers for the San Francisco-Oakland-San Jose Area. As annexations into the District occur, the estimated annual cost will increase in order to service additional development. The initial appropriation limit for the District is set at $4,000,000 and may be adjusted for futVre annexation as necessary. Y Page 8-1 Cit of Atascadero Community Facilities District No. 2005-1 (Public Services) 232 EXHIBIT C CITY OF ATASCADERO COMMUNITY FACILITIES DISTRICT NO. 2005-1 (PUBLIC SERVICES) RATE AND METHOD OF APPORTIONMENT Page C-1 City of Atascadero Community Facilities District No. 2005-1 (Public Services) 233 CITY OF ATASCADERO COMMUNITY FACILITIES DISTRICT NO. 2005-1 (PUBLIC SERVICES) RATE AND METHOD OF APPORTIONMENT A Special Tax of Community Facilities District No. 2005-1 (Public Services) of the City of Atascadero ("CFD") shall be levied on all Assessor's Parcels in the CFD and collected each Fiscal Year commencing in Fiscal Year 2005-06 in an amount determined by the City through the application of the rate and method of apportionment of the Special Tax set forth below. All of the real property in the CFD, unless exempted by law or by the provisions hereof, shall be taxed for the purposes,to the extent and in the manner herein provided. A. DEFINITIONS The terms hereinafter set forth have the following meanings: "Acre or Acreage" means the land area of an Assessor's Parcel as shown on an Assessor's Parcel Map, or if the land area is not shown on an Assessor's Parcel Map, the land area shown on the applicable final subdivision map, other final map, other parcel map, other condominium plan, or functionally equivalent map or instrument recorded in the Office of the County Recorder. The square footage of an Assessor's Parcel is equal to the Acreage multiplied by 43,560. "Act" means the Mello-Roos Community Facilities Act of 1982, as amended, being Chapter 2.5, Part 1, Division 2 of Title 5 of the Government Code of the State of California. "Administrative Expenses" means the actual or estimated costs incurred by the City as administrator of the CFD to determine, levy and collect the Special Taxes, including salaries, benefits and overhead costs of City employees whose duties are directly related to administration of the CFD and the fees of consultants, legal counsel, the costs of collecting installments of the Special Taxes upon the general tax rolls, preparation of required reports; and any other costs required to administer the CFD as determined by the City. "Affordable Unit(s)" means dwelling units located on one or more Assessor's Parcels of Residential Property that are sub)ect to deed restrictions, resale restrictions, and/or regulatory agreements recorded in favor of the City providing for affordable housing. Affordable Units will require annual application to the City for verification of their affordable housing status. The City will have the authority to approve and establish policies regarding Affordable Housing Dwelling Units and their status. Affordable dwelling units April 12 Ap 2005 1 of 8 City of Atascadero Community Facilities District No. 2005-1 (Public Services) 234 shall be classified as Affordable Units by the CFD Administrator in the chronological order in which the building permits for such property are issued. "Annual Escalation Factor" means the greater of, five percent (5%) or the annual percentage change in the Consumer Price Index (CPI) of "All Urban Consumers"for the San Francisco-Oakland-San Jose Area. "Approved Property" means an Assessor's Parcel and/or Lot in the District, which has a Final Map recorded prior to January 1st preceding the Fiscal Year in which the Special Tax is being levied, but for which no building permit has been issued prior to the May 1st preceding the Fiscal Year in which the Special Tax is being levied. The term "Approved Property" shall apply only to Assessors' Parcels and/or Lots, which have been subdivided for the purpose of residential or commercial development, excluding any Assessor's Parcel that is designated as a remainder parcel determined by final documents and/or maps available to the CFD Administrator. "Assessor's Parcel" means a lot or parcel shown in an Assessor's Parcel Map with an assigned assessor's parcel number. "Assessor's Parcel Map" means an official map of the Assessor of the County designating parcels by assessor's parcel number. ,Base Year" means Fiscal Year ending June 30, 2006. 0 CFD Administrator means an official of the City, or designee thereof, responsible for determining the Special Tax Requirement and providing for the levy and collection of the Special Taxes. "CFD" means Community Facilities District No. 2005-1 (Public Services) of the City of Atascadero. "City" means the City of Atascadero. "Council" means the City Council of the City of Atascadero, acting as the legislative body of the CFD. "County" means the County of San Luis Obispo, California. "Developed Property" means all Taxable Property, exclusive of Property Owner Association Property, or Public Property, for which a building permit was issued after July 1, 2004 and prior to May 1st preceding the Fiscal Year in which the Special Tax is being levied. "Final Map" means an Assessor's Parcel Map, a final subdivision map, other parcel map, other final map, other condominium plan, or functionally equivalent map that has been recorded in the Office of the County Recorder. April 12 2005 2 of 8 City ofAtascadero Community Facilities District No. 2005-1 (Public Services 235 "Fiscal Year" means the period starting July 1 and ending on the following June 30. "Land Use Class" means any of the classes listed in Table 1. "Lot" means property within a recorded Final Map identified by a lot number for which a building permit has been issued or may potentially be issued. "Maximum Special Tax" means the maximum Special Tax, determined in accordance with Section C below that can be levied in the CFD in any Fiscal Year on any Assessor's Parcel. "Multi-Family Residence" means all Assessor's Parcels of Developed Property for which a building permit has been issued for a residential structure consisting of two or more residential units that share common walls, including, but not limited to, duplexes, triplexes, townhomes, condominiums, apartment units, and secondary units as defined in Ordinance No. 454. "Non-Residential Property" means all Assessor's Parcels of Developed Property for which a building permit(s) has been issued for a non-residential use and does not contain any residential units as defined under Residential Property or Multi-Family Property. "Park Services" means the estimated and reasonable costs for maintaining authorized parks within the City. "Property Owner Association Property" means any property within the boundaries of the CFD that is owned by, or irrevocably dedicated as indicated in an instrument recorded with the County Recorder to, a property owner association, including any master or sub-association. "Proportionately" means in a manner such that the ratio of the actual Special Tax levy to the Maximum Special Tax is equal for all Assessor's Parcels within each Land Use Class. "Public Property means any property within the boundaries of the CFD that is, at the time of the CFD formation or at the time of an annexation, expected to be used for rights-of-way, parks, schools or any other public purpose and is owned by or irrevocably offered for dedication to the federal government, the State, the County,the City or any other public agency. "Public Safety Costs" means the estimated and reasonable costs of providing Public Safety services, including but not limited to (i) the costs of contracting for police and fire services, (ii) related facilities, equipment, vehicles, ambulances and paramedics, fire apparatus, supplies, (iii) the salaries and benefits of City staff if the City directly provides police and fire protection services, and (iv) City overhead costs associated with providing such services April 12,2005 3 of 8 City of Atascadero Community Facilities District No. 2005-1 (Public Services) 236 within the CFD. The Special Tax provides only partial funding for Public Safety. "Residential Unit" means any residence in which a person or persons may live, which comprises an independent facility capable of conveyance separate from adjacent residential dwelling units and is not considered to be for commercial or industrial use. This includes Single-Family Residence and Multi-Family Residence. "Single-Family Residence " means all Assessor's Parcels of Developed Property for which a building permit(s) has been issued for purposes of constructing one residential dwelling unit. "Special Tax" means the Special Tax to be levied in each Fiscal Year on each Assessor's Parcel of Taxable Property to fund the Special Tax Requirement, and shall include Special Taxes levied or to be levied under Sections C and D, below. "Special Tax Requirement" means that amount required in any Fiscal Year for the CFD to: (i) pay for Public Safety Costs;(ii) pay for Park Services; (iii) pay reasonable Administrative Expenses; (vi) pay any amounts required to establish or replenish any reserve funds; and (v) pay for reasonably anticipated delinquent Special Taxes based on the delinquency rate for Special Taxes levied in the previous Fiscal Year; less any surplus of funds available from the previous Fiscal Year's Special Tax levy. "State" means the State of California. "Taxable Property" means all of the Assessor's Parcels within the boundaries of the CFD that are not exempt from the Special Tax pursuant to law or as defined below. "Tax-Exempt Property means an Assessor's Parcel not subject to the Special Tax. Tax-Exempt Property includes: (i) Public Property, (ii) Property Owner Association Property, and (iii) property designated by the City or CFD Administrator as Tax-Exempt Property. "Undeveloped Property" means, for each Fiscal Year, all Taxable Property not classified as Developed Property or Approved Property, including an Assessor's Parcel that is designated as a remainder parcel and is not identified as potential Public Property by any final document and/or maps available to the CFD Administrator. AP 2005 4 of 8 Ci April 12 Atascadero City of Community Facilities District No. 2005-1 (Public Services) 237 B. ASSIGNMENT TO LAND USE CATEGORIES Each Fiscal Year using the definitions above, all Taxable Property within the CFD shall be classified as Developed Property, Approved Property, Non-Residential Property, or Undeveloped Property. Developed Property shall further be classified as Residential Units as specified in Table 1 and shall be subject to Special Taxes pursuant to Sections C and D below. C. MAXIMUM SPECIAL TAX RATE 1. Developed Property TABLE 1 Maximum Special Tax for Developed Property Community Facilities District No. 2005-1 (Public Services) Land Use Maximum Special Tax Class Description Per Unit 1 Residential Units $440 per Unit 2 Affordable Units $0 per Unit r the Maximum On each July 1 following the Base Year, Special Tax Rates shall be increased in accordance with the Annual Escalation Factor. 2. Approved Property TABLE 2 Maximum Special Tax for Approved Property Community Facilities District No. 2005-1 (Public Services) Land Use Maximum Special Tax Class Description Per Lot 3 Approved Property $231 per Lot On each July 1 following the Base Year, the Maximum Special Tax Rate shall be increased in accordance with the Annual Escalation Factor. April 12,2005 5 of 8 City of Atascadero Community Facilities District No. 2005-1 (Public Services 238 3. Non-residential Property TABLE 3 Maximum Special Tax for Non-Residential Property Community Facilities District No. 2005-1 (Public Services) Land Use Maximum Special Tax Class Description I Per Acre 4 Non-Residential Property $1,848 per Acre The minimum special tax Non-Residential Property shall be sub)ect to is $50 per parcel. On each July 1 following the Base Year, the Maximum Special Tax Rate for Non-Residential Property shall be increased in accordance with the Annual Escalation Factor. 4. Multiple Land Use Classes In some instances an Assessor's Parcel may contain more than one Land Use Class. The Maximum Special Tax levied on an Assessor's Parcel shall be the sum of the Maximum Special Tax levies that can be imposed on all Land Use Classes located on that Assessor's Parcel. 5. Undeveloped Property Undeveloped Property will be assigned a Maximum Special Tax Rate of $410 per acre or portion thereof, with a minimum rate of $100 for Undeveloped -Property less than or equal to one-forth (1/4) of an Acre as described in Table 4 April 12 Ap 2005 6 of 8 Ci Atascadero �'o.f Community Facilities District No. 2005.1 (Public Services) 239 TABLE 4 Maximum Special Tax for Undeveloped Property Community Facilities District No. 2005-1 (Public Services) Land Use Maximum Special Tax Class Description Per Parcel/Acre 5 Undeveloped Property $100 per Parcel 1/4 Acre 6 Undeveloped Property $410 per Acre > 1/4 Acre On each July 1 following the Base Year, the Maximum Special Tax Rate, for Undeveloped Property, shall be increased in accordance with the Annual Escalation Factor D. METHOD OF APPORTIONMENT OF THE SPECIAL TAX Commencing with Fiscal Year 2005-06, and for each following Fiscal Year, the CFD Administrator shall calculate the Special Tax Requirement based on the definitions in Section A and levy the Special Tax until the amount of the Special Tax levied equals the Special Tax Requirement. The Special Tax shall be levied each Fiscal Year on each Assessor's Parcel of Developed Property Proportionately between Residential Units up to 100% of the applicable Maximum Special Tax. Second, if the Special Tax Requirement'has not been satisfied by the first step, then the Special Tax shall be levied each Fiscal Year on each Assessor's Parcel of Approved Property up to 100% of the applicable Maximum Special Tax for Approved Property. Third, if the first two steps have not satisfied the Special Tax Requirement, then the Special Tax shall be levied each Fiscal Year on each Assessor's Parcel of Non-Residential Property up to 100% of the applicable Maximum Special Tax for Non-Residential Property. Lastly, if the preceding steps have not satisfied the Special Tax Requirement, then the Special Tax shall be levied each Fiscal Year on each Assessor's Parcel of Undeveloped Property up to 100% of the applicable Maximum Special Tax for Undeveloped Property. April 12,2005 7 of 8 City of Atascadero Community Facilities District No. 2005-1 (Public Services) 240 E. APPEALS Any taxpayer that believes that the amount of the Special Tax assigned to a Parcel is in error may file a written notice with the CFD Administrator appealing the levy of the Special Tax. This notice is required to be filed with the CFD Administrator during the Fiscal Year the error is believed to have occurred. The CFD Administrator or designee will then promptly review the appeal and, if necessary, meet with the taxpayer. If the CFD Administrator verifies that the tax should be changed the Special Tax levy shall be corrected and, if applicable in any case, a refund shall be granted. F. MANNER OF COLLECTION Special Tax as levied pursuant to Section D above shall be collected in the same manner and at the same time as ordinary ad valorem property taxes; provided, however, that the CFD Administrator may directly bill the Special Tax, may collect Special Taxes at a different time or in a different manner if necessary to meet the financial obligations of the CFD or as otherwise determined appropriate by the CFD Administrator. G. TERM OF SPECIAL TAX The Special Tax shall be levied in perpetuity or until such time as Council terminates the Special Tax. April 12,2005 8 of 8 City tY oAtascadero f Community Facilities District No. 2005-1 (Public Services) 241 CITY OF ATASCADERO SUMMARY RESIDENTIAL Revenues $ 1,351.15 Less: Expenses (1,784.69) Residential Ongoing Surplus/(Deficit) $ (433.54) Residential Surplus/(Deficit) per Dwelling Unit $ (433.54) Residential Revenue/Cost Ratio 0.76 NOW RESIDENTIAL Revenues $ - Less: Expenses - Non-Residential Ongoing Surplus/(Deficit) $ - Non-Residential Surplus/(Deficit) per Acre $ - Non-Residential Revenue/Cost Ratio - GRAND TOTAL Revenues $ 1,351.15 Less: Expenses (1,784.69) Total Ongoing Surplus/(Deficit) $ (433.54) Residential Revenue/Cost Ratio 0.76 Page 1 of 1 242 ITEM NUMBER: B-2 DATE: 05/24/05 sign on 1 79 8 -. Atascadero City Council Staff Report - Fire Department Weed Abatement - Hearing of Objections RECOMMENDATION: Council consider all objections to the proposed removal of vegetative growth and/or refuse and allow or overrule any objections. Following the hearing, it is recommended that the City Council authorize the Fire Chief to proceed and perform the work of abatement. DISCUSSION: As part of the abatement process, the City Council is required to hear objections to the proposed removal of vegetative growth and/or refuse. This hearing allows any affected property owner to object to the proposed abatement of hazards on their property. FISCAL IMPACT: Costs involved in administering this program are recovered through the 150% administrative fee charged to parcels abated by the City Contractor. ALTERNATIVES: No alternative is recommended. ATTACHMENTS: None 243