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HomeMy WebLinkAboutAgenda Packet 07/12/2005 CITY OF ATASCADERO CITY COUNCIL AGENDA Tuesday, July 12, 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 legal counsel – anticipated litigation – access to Stadium Park Significant exposure to litigation pursuant to Govt. Code Sec. 54956.9 (b). b) Conference with Labor Negotiator (Govt. Code Sec. 54957.6) Agency Negotiators: City Manager, Assistant City Manager Employee Organizations: Mid-Management/Professional, Service Employees Intl. Union Local 620 3. ADJOURN 4. CLOSED SESSION REPORT REGULAR SESSION: 7:00 P.M. PLEDGE OF ALLEGIANCE: Mayor Pro Tem O’Malley ROLL CALL: Mayor Scalise Mayor Pro Tem O’Malley Council Member Clay Council Member Luna Council Member Pacas 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.) 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. January 2005 Treasurer’s Report ƒ Fiscal Impact: None. ƒ Recommendation: Council approve the City Treasurer’s report for January 2005. [City Treasurer] 2. February 2005 Treasurer’s Report ƒ Fiscal Impact: None. ƒ Recommendation: Council approve the City Treasurer’s report for February 2005. [City Treasurer] 3. March 2005 Treasurer’s Report ƒ Fiscal Impact: None. ƒ Recommendation: Council approve the City Treasurer’s report for March 2005. [City Treasurer] 4. April 2005 Treasurer’s Report ƒ Fiscal Impact: None. ƒ Recommendation: Council approve the City Treasurer’s report for April 2005. [City Treasurer] 5. Human Services Grants ƒ Fiscal Impact: The program is budgeted at $20,000. ƒ Recommendation: Council approve Human Services Grants to the Agencies and in the amounts recommended by the Finance Committee in Attachment A. [City Manager] 6. Senior Hotel Project ƒ Fiscal Impact: The sum of $142,918.00 to be paid from the Agency Low/Moderate Housing Fund. ƒ Recommendation: Council approve the Draft Resolution finding that the use of Redevelopment Agency Housing Funds to assist the development of an affordable senior housing project within the City is of benefit to the redevelopment project area. [City Manager] 7. Hot El Camino Nite Road Closure ƒ Fiscal Impact: None. ƒ Recommendation: Council approve the Draft Resolution authorizing the closure of El Camino Real from Curbaril to West Mall on Friday, August 19th, 2005 from 6:30 p.m. until 8:30 p.m. [Community Services] 8. Final Map 2005-0119 (Tract 2721) 8320 Santa Ynez Ave. (TTM 2004- 0063) (Bennett / Sholders) ƒ Fiscal Impact: None. ƒ Recommendations: Council: 1. Accept Final Parcel Map 2005-0119 (Tract 2721); and, 2. Reject, without prejudice to future acceptance, the offers of dedication for Public Utility Easement. [Public Works] B. MANAGEMENT: 1. Community Facilities District ƒ Fiscal Impact: Annual taxes of $440 per unit for each new residential unit with the Woodridge/Los Lomas, Colony at Apple Valley and De Anza developments will result in new annual revenues of approximately $155,000. ƒ Recommendations: Council: 1. Adopt Ordinance levying and apportioning the Special Tax in the City of Atascadero Community Facilities District No. 2005-1; and, 2. Adopt Draft Resolution providing for the levy of the Special Tax in the City of Atascadero Community Facilities District No. 2005-1 for fiscal year 2005-2006. [Administrative Services] 2. De Anza Estates Assessment Districts ƒ Fiscal Impact: There is no fiscal impact to general residents within the City. ƒ Recommendations: Council: 1. Adopt Draft Resolution A initiating proceedings for the formation of Street and Storm Drain Benefit Assessment District No. 03 – De Anza Estates; and the levy and collection of annual assessments related thereto commencing with fiscal year 2005/2006; and, 2. Adopt Draft Resolution B accepting and approving the engineer’s report regarding the formation of Street and Storm Drain Benefit Assessment District No. 03 – De Anza Estates; and, 3. Adopt Draft Resolution C declaring the City’s intention to form Street and Storm Drain Benefit Assessment District No. 03 – De Anza Estates; and to levy and collect annual assessments within such district commencing in fiscal year 2005/2006; and to conduct a property owner balloting on the matter of the proposed assessments connected therewith, and to appoint a time and place for the public hearing on these matters; and, 4. Adopt Draft Resolution D initiating proceedings for the formation of Landscaping and Lighting District No. 03 – De Anza Estates; and the levy and collection of annual assessments related thereto commencing with fiscal year 2005/2006; and, 5. Adopt Draft Resolution E accepting and approving the engineer’s report regarding the formation of Landscaping and Lighting District No. 03 – De Anza Estates; and, 6. Adopt Draft Resolution F declaring the City’s intention to form Landscaping and Lighting District No. 03 – De Anza Estates; and to levy and collect annual assessments within such district commencing in fiscal year 2005/2006; and to conduct a property owner balloting on the matter of the proposed assessments connected therewith, and to appoint a time and place for the public hearing on these matters. [Administrative Services] 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 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 July 12, 2005 Regular Session of the Atascadero City Council was posted on July 6, 2005 at the Atascadero City Hall Annex, 6905 El Camino Real, Suite 6, Atascadero, CA 93422 and was available for public review in the Customer Service Center at that location. Signed this 6th day of July, 2005 at Atascadero, California. ___________________________________ Shannon Sims, Deputy City Clerk City of Atascadero City of Atascadero WELCOME TO THE ATASCADERO CITY COUNCIL MEETING The City Council meets in regular session on the second and fourth Tuesday of each month at 7:00 p.m., at the Atascadero 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 All business matters to appear on the Agenda must be in the Office of the City Manager 14 days preceding the Council meeting. 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. ITEM NUMBER: A - 5 DATE: 07/12/2005 Atascadero City Council Staff Report – City Manager’s Office Human Services Grants RECOMMENDATION: Council approve Human Services Grants to the Agencies and in the amounts recommended by the Finance Committee in Attachment A. DISCUSSION: Background: The City of Atascadero has a Human Services Grant program, where annually $20,000 has been available to assist local service providers that have a profound impact on the community. The providers must meet a series of eligibility criteria in the competitive process. The Finance Committee has reviewed the applications and has made the attached recommendations. Twenty applications were received requesting $57,814.00. All of the applications complied with the City’s criteria and all were worthy of funding. Thirteen applications are recommended for full or partial funding as can be seen on Attachment A. The complete applications are available for review in the City Clerk’s office. FISCAL IMPACT: The program is budgeted at $20,000. ATTACHMENTS: 1. Attachment A - Recommendations ITEM NUMBER: A - 5 DATE: 07/12/2005 CITY OF ATASCADERO Human Services Grants - 2005 Finance Committee’s Recommendations Agency Name Prior Year Request Recommendation Aids Support Network 0 $1,050.00 445.00 American Red Cross $1,200.00 $1,400.00 1,400.00 Assistance League of SLO County $3,950.00 $4,740.00 500.00 Atascadero Community Link $600.00 $1,000.00 1,000.00 Atascadero Loaves & Fishes $3,000.00 $5,000.00 5,000.00 Atascadero Mutual Water Company New $2,500.00 - Atascadero BMX New $1,705.00 1,705.00 Boys & Girls Club New $10,000.00 - Court Appointed Special Advocates (CASA) $750.00 $2,280.00 1,000.00 EOC Health Services (Adult Day Services) New $2,000.00 - Food Bank Coalition / SLO County 0 $2,000.00 - Homeless Housing Project 0 $3,126.00 - Hospice of SLO County $1,000.00 $1,600.00 1,600.00 Housing Trust Fund 0 $5,000.00 - North County Connection $1,200.00 $5,000.00 1,600.00 North County Women’s Shelter $3,000.00 $3,000.00 3,000.00 Parks – 4 – Pups new $2,000.00 - Senior Legal Services Project $500.00 $1,413.00 750.00 Senior Nutrition Program new $2,000.00 1,000.00 Transitions-Mental Health Assoc (TMHA) $1,000.00 $1,000.00 1,000.00 00 0 TOTAL $16,200.00 $57,814.00 20,000.00 ITEM NUMBER: A - 6 DATE: 07/12/05 Atascadero City Council Staff Report – City Manager Senior Hotel Project RECOMMENDATION: Council approve the Draft Resolution finding that the use of Redevelopment Agency Housing Funds to assist the development of an affordable senior housing project within the City is of benefit to the redevelopment project area. DISCUSSION: Background: The San Luis Obispo Non-Profit Housing Corporation has proposed a two-story 19-unit retirement hotel for low-income senior citizens on a 0.92-acre site located at 9705 El Camino Real, Atascadero. The building will include a 730 square foot community room, elevator, and laundry facilities on each floor. There will be nineteen covered parking spaces and six guest parking spaces at an estimated construction cost of $4,620,100. This is an affordable housing project for those with income less than 50% of median income. Participation by the Agency will work to improve the project’s quality and make the project financially feasible. Rational: The Community Redevelopment Agency Implementation Plan sets as a housing program “[d]evelopment of new, affordable units.” Redevelopment law requires that “not less than twenty percent (20%) of all taxes allocated to the Agency pursuant to Section 33670 of the California Health and Safety Code shall be used by the Agency for the purposes of increasing, improving and preserving the City’s supply of housing for persons and families of low or moderate income . . .” Section 33334.6 (a) of the California Health and Safety Code states in pertinent part that “[t]he Legislature finds and declares that the provision of housing is itself a fundamental purpose of the Community Redevelopment Law and that a generally inadequate statewide supply of decent, safe, and sanitary housing affordable to persons and families of low or moderate income . . . threatens the accomplishment of the primary purposes of the Community Redevelopment Law . . . .” “The Legislature further finds, and declares that the provision and improvement of affordable housing, as provided by Section 33334.2, outside of the redevelopment project areas can be of 2 direct benefit to those projects in assisting the accomplishment of project objectives whether or not those redevelopment projects provide for housing within the project area.” The Community Redevelopment Agency Plan states that “[t]he Agency may use these funds to meet, in whole or in part the replacement housing provisions set forth in this Plan and Community Redevelopment Law. These funds may be used inside or outside the Project Area provided, however, that funds may be used outside the Project Area only if findings of benefit to the Project Area are made [by the Agency Board and City Council] as required by Section 33334.2 of the Health and Safety Code.” No affordable housing units have been developed within the Atascadero Community Redevelopment Agency Project Area. If the funding request is approved, the Agency will help to provide 19 new low-income affordable units within the City for an investment of $7,522 per unit, nine of which can be counted toward the Agency’s project area housing production requirement. In consideration of receiving the requested assistance, the San Luis Obispo Non-Profit Housing Corporation has agreed to indemnify the Redevelopment Agency and the City of Atascadero. Conclusion: Providing assistance to The Senior Hotel project is consistent with the Redevelopment Plan, is permitted pursuant to Redevelopment Law, and will add much needed units to the overall affordable housing stock within the City. Staff recommends approval of the Draft Resolution as presented, and Agency Board authorize funding as requested. FISCAL IMPACT: The sum of $142,918.00 to be paid from the Agency Low/Moderate Housing Fund. ALTERNATIVES: Deny approval of Draft Resolution. This option is not recommended given the need within the City for affordable housing. ATTACHMENTS: 1. Draft Resolution DRAFT RESOLUTION A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ATASCADERO, CALIFORNIA, FINDING THAT THE USE OF REDEVELOPMENT AGENCY HOUSING FUNDS TO ASSIST THE DEVELOPMENT OF AN AFFORDABLE SENIOR HOUSING PROJECT WITHIN THE CITY IS OF BENEFIT TO THE REDEVELOMENT PROJECT AREA WHEREAS, pursuant to the Community Redevelopment Law of the State of California (Redevelopment Law), the City of Atascadero (City) has adopted a Redevelopment Plan for the Redevelopment Project Area administered by the Atascadero Community Redevelopment Agency (Agency); and, WHEREAS, there is a well documented need for more affordable housing within the City of Atascadero; and, WHEREAS, the San Luis Obispo Housing Corporation has requested development fee assistance from the Atascadero Community Redevelopment Agency for The Senior Hotel project located at 9705 El Camino Real, Atascadero, in the amount of $142,918.00 to improve the project’s quality and make the project economically feasible; and, WHEREAS, Health and Safety Code Section 33334.6 (a) states in pertinent part that “[t]he Legislature finds and declares that the provision of housing is itself a fundamental purpose of the Community Redevelopment Law and that a generally inadequate statewide supply of decent, safe, and sanitary housing affordable to persons and families of low or moderate income . . . threatens the accomplishment of the primary purposes of the Community Redevelopment Law . . . The Legislature further finds, and declares that the provision and improvement of affordable housing, as provided by Section 33334.2, outside of the redevelopment project areas can be of direct benefit to those projects in assisting the accomplishment of project objectives whether or not those redevelopment projects provide for housing within the project area.”; and, WHEREAS, Health and Safety Code Section 33334.16(g)(1) provides that the Agency may use low/mod housing funds “inside or outside the project area” subject to a “resolution of the agency and the legislative body that the use will be of benefit to the project [area] and that “[t]he determination by the agency and the legislative body shall be final and conclusive as to the issue of benefit to the project area;” and, WHEREAS, in consideration of the Agency’s contribution, the San Luis Obispo Non-Profit Housing Corporation must enter into an Indemnification Agreement with Agency indemnifying Agency and City; and, WHEREAS, the City Council has duly considered the impact of assisting The Senior Hotel project to the Project Area, and trust that using Agency housing funds for this purpose is of benefit to the Project Area by increasing the low and moderate income affordable housing stock within the City of Atascadero consistent with the intent of the California Legislature. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Atascadero as follows: 1. The City Council finds and determines, based on information and belief, that the use of Agency housing funds to assist The Senior Hotel project is of benefit to the Project Area. 2. This Resolution will take effect upon adoption. 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 By:_________________________________ Wendy Scalise, Mayor ATTEST: APPROVED AS TO FORM By: _________________________________ By: _________________________ Marcia McClure Torgerson, C.M.C., City Attorney City Clerk STATE OF CALIFORNIA ) COUNTY OF SAN LUIS OBISPO ) ss CITY OF ATASCADERO ) I, Marcia McClure Torgerson, City Clerk of the City of Atascadero, California, do hereby certify that the foregoing Resolution No.__ was duly and regularly adopted at a regular meeting of the City Council of the City of Atascadero, California, held on the day of 2005, by the following vote: AYES: NOES: ABSENT: ABSTAINED: By:_________________________________ Marcia McClure Torgerson, C.M.C., City Clerk ITEM NUMBER: A - 7 DATE: 07/12/05 Atascadero City Council Staff Report – Community Services Department Hot El Camino Nite Road Closure RECOMMENDATION: Council approve the Draft Resolution authorizing the closure of El Camino Real from Curbaril to West Mall on Friday, August 19th, 2005 from 6:30 p.m. until 8:30 p.m. DISCUSSION: On Friday, August 19th, 2005, City staff is proposing to close El Camino Real from Curbaril to West Mall from 6:30 p.m. until 8:30 p.m. to conduct the annual Hot El Camino Nite Cruise. For the sixth year, the Hot El Camino Nite Cruise event will be coordinated by the Atascadero Community Services Department. This event attracts thousands of tourists and spectators who line up along El Camino Real to view the vehicles that participating in this growing event. Last year, there were 527 vehicles registered. The route for this year’s “Cruise” is proposed to begin at Curbaril and end at West Mall. The route requires that CalTrans, or a contractor, close the northbound Highway 41 exit and detour the traffic. CalTrans has requested a Resolution from the Atascadero City Council authorizing the closure of El Camino Real along the proposed “Cruise” route. FISCAL IMPACT: None. This is a non-profit event sponsored by the City of Atascadero, a governmental agency. CalTrans will issue the permit free of charge if all traffic control and ramp closures are handled per the permit provisions. The event will cover its direct costs and a large portion of its indirect costs. The event provides economic benefits to many Atascadero businesses. ITEM NUMBER: A - 7 DATE: 07/12/05 ALTERNATIVES: None proposed. ATTACHMENTS: 1. Draft Resolution authorizing the Closure of El Camino Real 2. Map of the proposed Hot El Camino Nite Cruise route 3. 2005 Hot El Camino Nite Logo and Theme – Choosin’ to Be Cruisin’ DRAFT RESOLUTION A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ATASCADERO, CALIFORNIA, CREATING A TEMPORARY CRUISE ROUTE BE IT RESOLVED by the City Council of the City of Atascadero that the Hot El Camino Nite car cruise route is hereby established as El Camino Real from Curbaril to West Mall; San Luis Avenue from Curbaril to Pueblo; Pueblo from San Luis Avenue to El Camino Real; and BE IT FURTHER RESOLVED that in order to provide a reserved route for the parade and the area described above is designated as a tow-away zone from the period of 6:30 p.m. until 8:30 p.m., August 19, 2005; and PASSED AND ADOPTED at the regular meeting of the City Council of the City of Atascadero held on the 12th of July, 2005. ATTEST: CITY OF ATASCADERO ________________________________ ______________________________ Marcia McClure Torgerson, C.M.C., Wendy Scalise, Mayor City Clerk APPROVED AS TO FORM: ________________________________ Patrick L. Enright, City Attorney ITEM NUMBER: A - 8 DATE: 07/12/05 Atascadero City Council Staff Report – Public Works Department Final Map 2005-0119 (Tract 2721) 8320 Santa Ynez Avenue (TTM 2004-0063) (Bennett / Sholders) RECOMMENDATIONS: Council: 1. Accept Final Parcel Map 2005-0119 (Tract 2721); and, 2. Reject, without prejudice to future acceptance, the offers of dedication for Public Utility Easement. DISCUSSION: On March 1, 2005, Planning Commission approved Tentative Tract Map 2004- 0063 to establish four (4) residential condominium units on an existing legal lot of record based on findings and subject to Conditions of Approval. 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 utility easements without prejudice to future acceptance. Staff has determined that the Final Tract Map is consistent with approved Tentative Tract Map. FISCAL IMPACT: None ATTACHMENTS: 1. Exhibit A: Final Map 2005-0119 (Tract 2721) ITEM NUMBER: A - 8 DATE: 07/12/05 Exhibit A Final Map 2005-0119 (Tract 2721) 8320 Santa Ynez Avenue Bennett / Sholders ITEM NUMBER: B - 1 DATE: 7/12/05 Atascadero City Council Staff Report – Administrative Service Department Community Facilities District RECOMMENDATIONS: Council: 1. Adopt Ordinance levying and apportioning the Special Tax in the City of Atascadero Community Facilities District No. 2005-1; and, 2. Adopt Draft Resolution providing for the levy of the Special Tax in the City of Atascadero Community Facilities District No. 2005-1 for fiscal year 2005-2006 REPORT-IN-BRIEF: On May 24, 2005 the Council adopted resolutions forming Community Facilities District 2005-1. A special election submitted a proposition to voters within the district to finance police services, fire protection and suppression services, and park services therein, and the establishment of an appropriations limit; the recordation of special tax lien was authorized. 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 ITEM NUMBER: B - 1 DATE: 7/12/05 Community Facilities District. The ordinance and resolution before Council are the final necessary steps to levy the special tax of $440 per year on property within the Community Facilities District for police, fire and park services. The money collected can only be used to hire new employees and their related equipment, and cannot be used to support existing services. 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: “All residential projects of 100 or more dwelling units shall be required to 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. Conclusion ITEM NUMBER: B - 1 DATE: 7/12/05 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 De Anza developments will result in new annual revenues of approximately $155,000. ALTERNATIVES: Levy no tax for the Community Facilities District and require the developers to meet the fiscal neutrality condition of approval through some other mechanism. ATTACHMENTS: 1. Ordinance- Levying and Apportioning the Special Tax in the City of Atascadero Community Facilities District No. 2005-1. 2. Draft Resolution- Providing for the Levy of the Special Tax in the City of Atascadero Community Facilities District No. 2005-1 for Fiscal Year 2005-2006. DRAFT ORDINANCE AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ATASCADERO, CALIFORNIA, LEVYING AND APPORTIONING THE SPECIAL TAX IN THE CITY OF ATASCADERO COMMUNITY FACILITIES DISTRICT NO. 2005-1 The City Council hereby finds and declares as follows: WHEREAS, City Council has established Community Facilities District No. 2005-1 (the “District”) pursuant to Resolution No. 2005-038 (the “Resolution of Formation”), duly adopted on May 24, 2005, for the purpose of providing for the financing of certain public services in and for the City; and, WHEREAS, at an election held in the District on May 24, 2005, the qualified electors of the District authorized the levy of the special tax described in the Resolution of Formation. NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF ATASCADERO HEREBY ORDAINS AS FOLLOWS: SECTION 1. Recitals. The foregoing recitals are true and correct. SECTION 2. Levy of Special Tax. Pursuant to Section 53340 of the California Government Code, the special tax is hereby levied at the maximum rates and apportioned in the manner specified in the Resolution of Formation. SECTION 3. Collection of Special Tax. Pursuant to Section 53340 of the California Government Code and the Resolution of Formation, the special tax shall be collected in the same manner as ordinary ad valorem property taxes are collected and shall be subject to the same procedure, sale, and lien priority in case of delinquency as is provided for ad valorem taxes; provided, however, that the City 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 District or as otherwise determined appropriate by the City. SECTION 4. Claims for Refund. Claims for refund of the tax shall comply with the following and any additional procedures as established by the City Council: 1. All claims shall be filed, in writing, with the Director of Finance during the Fiscal Year in which the error is believed to have occurred. The claimant shall file the claim within this time period and the claim shall be finally acted upon by the City Council as a prerequisite to bringing suit thereon. 2. Pursuant to Government Code section 935(b), the claim shall be subject to the provisions of Government Code sections 945.6 and 946. City of Atascadero Ordinance No. Page 2 of 3 3. The City Council shall act on a timely claim within the time period required by Government Code section 912.4. 4. The procedure described in this Ordinance, and any additional procedures established by the City Council, shall be the exclusive claims procedure for claimants seeking a refund of the tax. The decision of the City Council shall be final. SECTION 5. Effective Date and Publication. This Ordinance, as an ordinance levying a tax for the usual and current expenses of the City, is an urgency ordinance and shall take effect immediately. Within (15) days of its adoption, the City Clerk shall cause this Ordinance to be published in newspaper of general circulation in the City pursuant to the provisions of Government Code Section 36933. City of Atascadero Ordinance No. Page 3 of 3 INTRODUCED at a regular meeting of the City Council held on February 22, 2005, and PASSED and ADOPTED by the City Council of the City of Atascadero, State of California, on March 8, 2005, by the following roll call vote: AYES: Council Members Clay, Luna, O’Malley and Mayor Scalise NOES: None ABSTAIN: None ABSENT: Council Member Pacas 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 DRAFT RESOLUTION A RESOLUTION OF CITY COUNCIL OF THE CITY OF ATASCADERO, CALIFORNIA, PROVIDING FOR THE LEVY OF THE SPECIAL TAX IN THE CITY OF ATASCADERO COMMUNITY FACILITIES DISTRICT NO. 2005-1 FOR FISCAL YEAR 2005-2006 WHEREAS, the City Council on May 24, 2005, duly adopted its Resolution No. 2005- 038 (the “Resolution”) establishing the City of Atascadero Community Facilities District No. 2005-1 (the “CFD”) for the purpose of providing for the financing of certain public services in and for the CFD and providing for the levy of a special tax in and for the CFD; and, WHEREAS, at an election held in the CFD on May 24, 2005, the qualified electors duly authorized the levy and collection of a special tax to be used for the purpose of paying the costs of the services; and, WHEREAS, the Council, on July 12, 2005, adopted its Ordinance No. (the “Ordinance”) levying the special tax in the CFD; and, WHEREAS, there has been submitted to the Council a special tax roll, which is on file with the City Clerk (the “Special Tax Roll”), for the CFD for Fiscal Year 2005-2006, which lists all parcels subject to the special tax levy and includes the amount of the special tax to be levied on each parcel, which amounts reflect rates that do not exceed the rates provided by the Ordinance; and, WHEREAS, the Council has determined to levy the special tax at the rates specified in the Special Tax Roll and to apportion them in the manner specified in the Resolution. NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Atascadero SECTION 1. The foregoing recitals are true and correct and this Council so finds and determines. SECTION 2. Pursuant to section 53340 of the Government Code of the State of California, the special tax is hereby levied at the rates specified in the Special Tax Roll and is hereby apportioned in the manner specified in the Resolution (and reflected in the Special Tax Roll). SECTION 3. The Administrative Services Director is hereby authorized to make changes to the Special Tax Roll prior to the final posting of the special taxes to the County Tax Roll, in response to appeals from taxpayers, or otherwise to achieve a correct match of the special tax levy with the assessor’s parcel numbers finally utilized by the County in sending out property tax bills or in order to correct errors that may, from time to time, arise in the application of the special tax to particular parcels. Draft Resolution Page Two SECTION 4. Pursuant to section 53340 of the Government Code of the State of California, the special tax shall be collected by the County Auditor of the County of San Luis Obispo in the same manner as ordinary ad valorem property taxes are collected and shall be subject to the same procedure, sale, and lien priority in case of delinquency as is provided for ad valorem taxes, subject to all other conditions set forth in the Resolution. SECTION 5. In order to have the special tax levied hereby collected in the next tax collection period and thus available to finance the services approved by the electors of the CFD, the Administrative Services Director shall deliver a certified copy of the Special Tax Roll to the County Auditor of the County of San Luis Obispo not later than August 10, 2005. SECTION 6. This Resolution shall take effect immediately upon adoption. Draft Resolution 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, City Clerk APPROVED AS TO FORM: ______________________________ Patrick Enright, City Attorney ITEM NUMBER: B - 2 DATE: 7/12/05 Atascadero City Council Staff Report – Administrative Services Department De Anza Estates Assessment Districts RECOMMENDATIONS: Council: 1. Adopt Draft Resolution A initiating proceedings for the formation of Street and Storm Drain Benefit Assessment District No. 03 – De Anza Estates; and the levy and collection of annual assessments related thereto commencing with fiscal year 2005/2006; and, 2. Adopt Draft Resolution B accepting and approving the engineer’s report regarding the formation of Street and Storm Drain Benefit Assessment District No. 03 – De Anza Estates; and, 3. Adopt Draft Resolution C declaring the City’s intention to form Street and Storm Drain Benefit Assessment District No. 03 – De Anza Estates; and to levy and collect annual assessments within such district commencing in fiscal year 2005/2006; and to conduct a property owner balloting on the matter of the proposed assessments connected therewith, and to appoint a time and place for the public hearing on these matters; and, 4. Adopt Draft Resolution D initiating proceedings for the formation of Landscaping and Lighting District No. 03 – De Anza Estates; and the levy and collection of annual assessments related thereto commencing with fiscal year 2005/2006; and, 5. Adopt Draft Resolution E accepting and approving the engineer’s report regarding the formation of Landscaping and Lighting District No. 03 – De Anza Estates; and, 6. Adopt Draft Resolution F declaring the City’s intention to form Landscaping and Lighting District No. 03 – De Anza Estates; and to levy and collect annual assessments within such district commencing in fiscal year 2005/2006; and to conduct a property owner balloting on the matter of the proposed assessments connected therewith, and to appoint a time and place for the public hearing on these matters. ITEM NUMBER: B - 2 DATE: 7/12/05 REPORT-IN-BRIEF: On December 9, 2003, Council approved the De Anza Estates planned development and tract map. As part of that map, De Anza Estates was conditioned as follows: 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. The administration of the above mentioned funds and the coordination and performance of maintenance activities shall be by the City. a) All Atascadero Police Department service costs to the project. b) All Atascadero Fire Department service costs to the project. c) All streets, sidewalks, streetlights, street signs, roads, emergency access roads, emergency access gates, and sewer mains within the project. d) All parks, trails, recreational facilities and like facilities. e) All open space and native tree preservation areas. f) All drainage facilities and detention basins. g) All common landscaping areas, street trees, medians, parkway planters, manufacture slopes outside private yards, and other similar facilities. De Anza Estates developers have indicated that they will meet this condition (with the exception of the public safety component) through the formation of special districts. (The public safety component of this condition has been addressed through the formation of a Community Facilities District 2005-1.) The formation of the Districts will allow the City to levy specific taxes upon each of the properties within the districts (De Anza Estates). Current assessment laws require the formation of two separate districts for maintaining the improvements. One 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. 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, it is our intent that at the time a major ITEM NUMBER: B - 2 DATE: 7/12/05 street replacement/rehabilitation becomes necessary, the burden of this cost will be born by the residents of the District. 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 improvements within the subdivision. There are three resolutions for each district (a total of 6 resolutions in all) that must be passed tonight in order to begin formation of the assessment districts. The first resolutions (Draft Resolutions A & D) initiate the formation of the each district. The second resolutions (Draft Resolutions B & E) adopt and approve the engineer’s report. MuniFinancial was hired to prepare the engineer’s report based on the landscape and improvement information provided to them by the developer and the City. MuniFinancial’s report details the purpose of the district, the parcels to be assessed, a proposed budget for the assessment, a proposed method for future increases, how much benefit each unit in the District receives from the improvements, and other information. 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 De Anza Estates, the engineer determined that all of the improvements, with the exception of the open space and the Horse Arena, provide 100% benefit to the residents of De Anza Estates 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 up to 50% of the cost of maintaining the open space and all of the costs associated with the Horse Arena “will be funded by other revenue sources available to the City.” Based on the Engineers Report, each unit will be assessed the following amounts annually. Property Type Landscape & Lighting Assessment Streets and Storm Drain Maintenance Single-family Residential $876.16 $611.04 Senior Housing $308.90 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 we find that 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) declare the City’s intention to form the districts, levy assessments, ballot the property owners of record for approval of the assessments, and sets the date of August 9, 2005 for a Public Hearing. 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 ITEM NUMBER: B - 2 DATE: 7/12/05 hearing. At this time, the Developers are the sole owners of the property and as such the Developers have submitted signed petitions waiving their rights to the 45-day notice period. On August 9, 2005 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 necessary resolutions to form the Districts and levy the first annual assessments. FISCAL IMPACT: Annual assessments will total $34,421 for road/drainage system maintenance and $55,636 for landscape and lighting maintenance. These amounts will be assessed to the owner(s) of parcels in De Anza Estates. 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 - initiating proceedings for the formation of Street and Storm Drain Benefit Assessment District No. 03 – De Anza Estates 2. Draft Resolution B - accepting and approving the Engineer’s Report regarding the formation of Street and Storm Drain Benefit Assessment District No. 03 – De Anza Estates 3. Draft Resolution C - declaring the City’s intention to form Street and Storm Drain Benefit Assessment District No. 03 – De Anza Estates 4. Engineer’s Report - for the formation of Street and Storm Drain Benefit Assessment District No. 03 – De Anza Estates 5. Draft Resolution D - initiating proceedings for the formation of Landscaping and Lighting District No. 03 – De Anza Estates 6. Draft Resolution E - accepting and approving the engineer’s report regarding the formation of Landscaping and Lighting District No. 03 – De Anza Estates. 7. Draft Resolution F - declaring the City’s intention to form Landscaping and Lighting District No. 03 – De Anza Estates 8. Engineer’s Report - for the formation of Landscaping and Lighting District No. 03 – De Anza Estates DRAFT RESOLUTION A A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ATASCADERO, CALIFORNIA, INITIATING PROCEEDINGS FOR THE FORMATION OF STREET AND STORM DRAIN MAINTENANCE DISTRICT NO. 03 (DE ANZA ESTATES); AND THE LEVY AND COLLECTION OF ANNUAL ASSESSMENTS RELATED THERETO COMMENCING WITH FISCAL YEAR 2005/2006 WHEREAS, the City Council 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 “1982 Act”) desires to form an assessment district to be designated as Street and Storm Drain Maintenance District No. 03 (De Anza Estates) (hereafter referred to as the “District”), for the purpose of funding the ongoing operation, maintenance and servicing of public streets, storm drain and flood control facilities installed in conjunction with the development of properties known as De Anza Estates Tract 2498; and to levy and collect annual assessments related thereto. The 1982 Act provides for the formation of such an assessment district pursuant to Article 3 Section 54710, and provides for the levy and collection of assessments by the County on behalf of the City pursuant to Article 4 Section 54718; and, WHEREAS, the City Council has retained MuniFinancial as the Engineer of Work, for the purpose of assisting with the formation of the District, the establishment of annual assessments, and to prepare and file an Engineer’s Report with the City Clerk in accordance with the 1982 Act and in accordance with the requirements of the California Constitution, Articles XIIIC and XIIID. NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Atascadero SECTION 1. The City Council hereby orders the Engineer to prepare and file an Engineer’s Report concerning the formation of the District, and the levy of assessments for properties within the District as specified by Article 4 Section 54716 of the 1982 Act. Draft Resolution A Page Two SECTION 2. The proposed District improvements include the ongoing operation, administration, maintenance and servicing of the public streets, drainage and flood control systems and appurtenant facilities authorized pursuant to the 1982 Act that were installed as part of property development and associated with the District. Said improvements may include, but are not limited to pavement, curbs, sidewalks, hardscape, bridges, fencing, signage, drains, pipes, inlets, manholes, outlets, catch basins, drainage basins, and associated appurtenant facilities located within the public street right-of-ways and other public easements within the District, and dedicated to the City of Atascadero for such maintenance. SECTION 3. The proposed territory within Street and Storm Drain Maintenance District No. 03 (De Anza Estates) consists of all lots, parcels and subdivisions of land located in the development known as De Anza Estates Tract 2498, which is proposed to include 26 single-family residential units and 60 senior housing units when fully subdivided. Draft Resolution A 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 Enright, City Attorney DRAFT RESOLUTION B A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ATASCADERO, CALIFORNIA, ACCEPTING AND APPROVING THE ENGINEER’S REPORT REGARDING THE FORMATION OF THE STREET AND STORM DRAIN MAINTENANCE DISTRICT NO. 03 (DE ANZA ESTATES) WHEREAS, the City Council has, by previous Resolution, ordered the preparation of an Engineer’s Report (hereafter referred to as the “Report”) regarding the formation of an assessment district to be designated as Street and Storm Drain Maintenance District No. 03 (De Anza Estates) (hereafter referred to as the “District”), and the levy and collection of assessments related thereto, 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 “1982 Act”); and, WHEREAS, there has now been presented to this City Council the Report as specified by Article 4 Section 54716 of said 1982 Act; and, WHEREAS, the City Council has carefully examined and reviewed the Report as presented, and is preliminarily satisfied with the District, each and all of the budget items and documents as set forth therein, and is satisfied that the proposed assessments have been spread in accordance with the special benefits received from the improvements, operation, administration, maintenance and services to be performed within the District, as set forth in said Report. NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Atascadero SECTION 1. That the preceding recitals are all true and correct. SECTION 2. That the Report as presented, consists of the following: a. A Description of Improvements. b. A Boundary Diagram of the District. c. The Method of Apportionment that details the method of calculating each parcel’s proportional special benefits and annual assessment. d. The proposed Budget (Costs and Expenses) and the duration and collection of assessments. Draft Resolution B Page Two e. The District Roll containing the Levy for each Assessor Parcel Number within the District for fiscal year 2005/2006. SECTION 3. The Report is hereby approved on a preliminary basis, and 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 Maximum Assessment and Assessment Range Formula described in the Report is hereby approved on a preliminary basis, and shall be submitted to the property owners within the District for approval pursuant to the provisions of the California Constitution Article XIIID. SECTION 5. The City Clerk shall certify to the passage and adoption of this Resolution, and the minutes of this meeting shall so reflect the presentation of the Report. 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 Enright, City Attorney DRAFT RESOLUTION C A RESOLUTION OF THE CITY COUNCIL OF ATASCADERO, CALIFORNIA, DECLARING ITS INTENTION TO FORM STREET AND STORM DRAIN MAINTENANCE DISTRICT NO. 03 (DE ANZA ESTATES); AND TO LEVY AND COLLECT ANNUAL ASSESSMENTS WITHIN SUCH DISTRICT COMMENCING IN FISCAL YEAR 2005/2006; AND TO CONDUCT A PROPERTY OWNER BALLOTING ON THE MATTER OF THE PROPOSED ASSESSMENTS CONNECTED THEREWITH, AND TO APPOINT A TIME AND PLACE FOR THE PUBLIC HEARING ON THESE MATTERS WHEREAS, the City Council 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 “1982 Act”) did by previous Resolution, initiate proceedings for the formation of an the assessment district designated as Street and Storm Drain Maintenance District No. 03 (De Anza Estates) (hereafter referred to as the “District”); to provide for the levy and collection of annual assessments to pay for the operation, maintenance and servicing of public streets, drainage and flood control systems and appurtenant facilities related thereto; and, WHEREAS, the Engineer selected by the City Council has prepared and filed with the City Clerk a Report in connection with the proposed District, and the levy of assessments commencing with Fiscal Year 2005/2006 (July 1, 2005 and ending June 30, 2006) in accordance with Chapter 1, Article 4 of the 1982 Act and in accordance with the requirements of the California Constitution, Articles XIIIC and XIIID, and the City Council did by previous Resolution preliminarily approve such Report. NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Atascadero SECTION 1. The City Council hereby declares its intention to seek the annual levy of the District pursuant to the 1982 Act, over and including the land within the District boundary, and to levy and collect special benefit assessments on parcels of land within the District to pay for the costs and expenses associated with the operation, maintenance, repair and servicing of public streets, drainage and flood control systems and appurtenant facilities related thereto. Draft Resolution C Page Two SECTION 2. The District improvements include the ongoing operation, administration, maintenance and servicing of the public streets, drainage and flood control systems and appurtenant facilities authorized pursuant to the 1982 Act that were installed as part of property development and associated with the District. Said improvements may include, but are not limited to pavement, curbs, sidewalks, hardscape, bridges, fencing, signage, drains, pipes, inlets, manholes, outlets, catch basins, drainage basins, and associated appurtenant facilities located within the public street right-of-ways and other public easements within the District, and dedicated to the City of Atascadero for such maintenance. The Engineer’s Report, as ordered by previous Resolution, provides a more detailed description of the improvements within the District. SECTION 3. The proposed territory within Street and Storm Drain Maintenance District No. 03 (De Anza Estates) consists of all lots, parcels and subdivisions of land located in the development known as De Anza Estates Tract 2498, which is proposed to include 26 single-family residential units and 60 senior housing units when fully subdivided. SECTION 4. An assessment ballot proceeding is hereby called on behalf of the District on the matter of confirming assessments for any property within the District subject to a new assessment pursuant to California Constitution Articles XIIIC and XIIID. The assessment ballot proceeding for the District on the matter of authorizing the levy of the assessments, pursuant to California Constitution, Article XIIID, Section 4 consists of a ballot, included with a mailed notice, distributed by mail, to the property owners of record. Each property owner’s ballot returned is weighted by the amount of its proposed assessment. Each property owner may return the ballot by mail or in person to the City Clerk not later than the conclusion of the Public Hearing on the matter on August 9, 2005. The Public Hearing is scheduled to begin on Tuesday, August 9, 2005, at 7:00 p.m., in the regular meeting chambers of the City Council located at the Atascadero Lake Pavilion, 9315 Pismo Street, Atascadero, California. At the conclusion of the Public Hearing, the City shall tabulate the ballots to determine if a majority protest exists. Majority protest exists if ballots submitted in opposition to the assessment exceed the ballots submitted in favor of the assessment. Draft Resolution C Page Three SECTION 5. The proposed assessments for the District are outlined in the Engineer’s Report. The Report details the proposed assessments necessary to provide for the annual operation, administration, services and maintenance of the improvements described in Section 2 of this Resolution. In subsequent years, the City Council will hold a Public Hearing for the District prior to approving the annual levy of assessments for the upcoming fiscal year. An increase to the annual assessment requires approval of that increase by the property owners through protest ballot proceedings. An increased annual assessment is defined as an assessment that is greater than the Adjusted Maximum Assessment (Initial Maximum Assessment plus the Annual Inflationary Adjustment) approved by the property owners. The initial maximum assessment and annual inflationary adjustment are outlined in the Engineer’s Report. SECTION 6. Notice is hereby given that a Public Hearing on these matters will be held by the City Council on Tuesday, August 9, 2005 at 7:00 p.m. or as soon thereafter as feasible in the regular meeting chambers of the City Council located at the Atascadero Lake Pavilion, 9315 Pismo Street, Atascadero, California, in accordance with Government Code, Section 53753 and California Constitution, Article XIIID, Section 4(e). The City shall give notice of the time and place of the Public Hearing by posting a copy of this resolution on the official bulletin board customarily used by the Council for the posting of notices and by publishing this resolution in a local newspaper pursuant to Government Code Section 6066 as outlined in the 1982 Act. As required by the California Constitution Article XIIID, those properties subject to a new or increased assessment shall be mailed a notice of the Public Hearing and a property owner ballot. Property owners being balloted for a new assessment must return their ballots to the City Clerk prior to the conclusion of the Public Hearing for tabulation. At the Public Hearing, all interested persons shall be permitted to present written and/or oral testimony. 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 Enright, City Attorney DRAFT RESOLUTION D A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ATASCADERO, CALIFORNIA, INITIATING PROCEEDINGS FOR THE FORMATION OF LANDSCAPING AND LIGHTING DISTRICT NO. 03 (DE ANZA ESTATES); AND THE LEVY AND COLLECTION OF ANNUAL ASSESSMENTS RELATED THERETO COMMENCING WITH FISCAL YEAR 2005/2006 WHEREAS, the City Council 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 “1972 Act”) desires to form an assessment district to be designated as Landscaping and Lighting District No. 03 (De Anza Estates) (hereafter referred to as the “District”), for the purpose of funding the ongoing operation, maintenance and servicing of landscape improvements and appurtenant facilities installed and developed in conjunction with the development of properties known as De Anza Estates Tract 2498; and to levy and collect annual assessments related thereto. The 1972 Act provides for the formation of such an assessment district pursuant to Chapter 2 Article 1, and provides for the levy and collection of assessments by the County on behalf of the City pursuant to Chapter 4 Article 2; and, WHEREAS, the City Council has retained MuniFinancial as the Engineer of Work, for the purpose of assisting with the formation of the District, the establishment of annual assessments, and to prepare and file an Engineer’s Report with the City Clerk in accordance with the 1972 Act, and in accordance with the requirements of the California Constitution, Articles XIIIC and XIIID. NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Atascadero SECTION 1. The City Council hereby orders the Engineer to prepare and file an Engineer’s Report concerning the formation of the District, and the levy of assessments for properties within the District as specified by Chapter 2, Article 1, Section 22585 of the 1972 Act. Draft Resolution D Page 2 SECTION 2. The proposed District improvements include the ongoing operation, administration, maintenance, servicing and incidental expenses related to the dedicated landscape areas, trails, open space areas and appurtenant facilities authorized pursuant to the 1972 Act that were installed or developed as part of property development and associated with the District. Said improvements 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, trail surfaces, hardscape improvements, monuments, and associated appurtenant facilities located within the open space areas, landscape easements or public right-of-ways dedicated to the City of Atascadero for such maintenance. SECTION 3. The proposed territory within Landscaping and Lighting District No. 03 (De Anza Estates) consists of all lots, parcels and subdivisions of land located in the development known as De Anza Estates Tract 2498, which is proposed to include 26 single family residential units and 60 senior housing units when fully subdivided. Draft Resolution D 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 Enright, City Attorney DRAFT RESOLUTION E A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ATASCADERO, CALIFORNIA, ACCEPTING AND APPROVING THE ENGINEER’S REPORT REGARDING THE FORMATION OF LANDSCAPING AND LIGHTING DISTRICT NO. 03 (DE ANZA ESTATES) WHEREAS, the City Council has, by previous Resolution, ordered the preparation of an Engineer’s Report (hereafter referred to as the “Report”) regarding the formation of an assessment district to be designated as the Landscaping and Lighting District No. 03 (De Anza Estates) (hereafter referred to as the “District”), and the levy and collection of assessments related thereto, 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 “1972 Act”); and, WHEREAS, there has now been presented to this City Council the Report as required by Chapter 2, Article 1, Section 22586 of said 1972 Act; and, WHEREAS, the City Council has carefully examined and reviewed the Report as presented, and is preliminarily satisfied with the District, each and all of the budget items and documents as set forth therein, and is satisfied that the proposed annual assessments have been spread in accordance with the special benefits received from the improvements, operation, administration, maintenance and services to be performed within the District, as set forth in said Report. NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Atascadero SECTION 1. That the preceding recitals are all true and correct. SECTION 2. That the Report as presented, consists of the following: a) Plans and specifications that describe the District and Improvements. Draft Resolution E 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 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 Report is hereby approved on a preliminary basis, and 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 Maximum Assessment and Assessment Range Formula described in the Report is hereby approved on a preliminary basis, and shall be submitted to the property owners within the District for approval pursuant to the provisions of the California Constitution Article XIIID. SECTION 5. The City Clerk shall certify to the passage and adoption of this Resolution, and the minutes of this meeting shall so reflect the presentation of the Report. 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 Enright, City Attorney DRAFT RESOLUTION F A RESOLUTION OF THE CITY COUNCIL OF ATASCADERO, CALIFORNIA, DECLARING ITS INTENTION TO FORM LANDSCAPING AND LIGHTING DISTRICT NO. 03 (DE ANZA ESTATES); AND TO LEVY AND COLLECT ANNUAL ASSESSMENTS WITHIN SUCH DISTRICT COMMENCING IN FISCAL YEAR 2005/2006; AND TO CONDUCT A PROPERTY OWNER BALLOTING ON THE MATTER OF THE PROPOSED ASSESSMENTS CONNECTED THEREWITH, AND TO APPOINT A TIME AND PLACE FOR THE PUBLIC HEARING ON THESE MATTERS WHEREAS, the City Council 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 “1972 Act”) did by previous Resolution, initiate proceedings for the formation of an the assessment district designated as Landscaping and Lighting District No. 03 (De Anza Estates) (hereafter referred to as the “District”); to provide for the levy and collection of annual assessments to pay for the operation, maintenance and servicing of landscape improvements and appurtenant facilities related thereto; and, WHEREAS, the Engineer selected by the City Council has prepared and filed with the City Clerk a Report in connection with the proposed District, and the levy of assessments commencing with Fiscal Year 2005/2006 (July 1, 2005 and ending June 30, 2006) in accordance with Chapter 1, Article 4 of the 1972 Act and in accordance with the requirements of the California Constitution, Articles XIIIC and XIIID, and the City Council did by previous Resolution preliminarily approve such Report. NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Atascadero SECTION 1. The City Council hereby declares its intention to seek the annual levy of the District pursuant to the 1972 Act, over and including the land within the District boundary, and to levy and collect special benefit assessments on parcels of land within the District to pay for the costs and expenses associated with the operation, maintenance, repair and servicing of landscaping, trails, open space areas and appurtenant facilities and expenses related thereto. Draft Resolution F Page Two SECTION 2. The District improvements include the ongoing operation, administration, maintenance, servicing and incidental expenses related to the dedicated landscape areas, public street lighting and appurtenant facilities authorized pursuant to the 1972 Act that were installed as part of property development and associated with the District. Said improvements 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, trail surfaces, hardscape improvements, monuments, and associated appurtenant facilities located within the open space areas, landscape easements or public right-of-ways dedicated to the City of Atascadero for such maintenance. The Engineer’s Report, as ordered by previous Resolution, provides a full and complete description of the improvements within the District. SECTION 3. The proposed territory within Landscaping and Lighting District No. 03 (De Anza Estates) consists of all lots, parcels and subdivisions of land located in the development known as De Anza Estates Tract 2498, which is proposed to include 70 single family residential units and 60 senior housing units when fully subdivided. SECTION 4. An assessment ballot proceeding is hereby called on behalf of the District on the matter of confirming assessments for any property within the District subject to a new assessment pursuant to California Constitution Articles XIIIC and XIIID. The assessment ballot proceeding for the District on the matter of authorizing the levy of the assessments, pursuant to California Constitution, Article XIIID, Section 4 consists of a ballot, included with a mailed notice, distributed by mail, to the property owners of record. Draft Resolution F Page Three Each property owner’s ballot returned is weighted by the amount of its proposed assessment. Each property owner may return the ballot by mail or in person to the City Clerk not later than the conclusion of the Public Hearing on the matter on August 9, 2005. The Public Hearing is scheduled to begin on Tuesday, August 9, 2005, at 7:00 p.m., before the City Council at the Atascadero Lake Pavilion, 9315 Pismo Street, Atascadero, California. At the conclusion of the Public Hearing, the City shall tabulate the ballots to determine if a majority protest exists. Majority protest exists if ballots submitted in opposition to the assessment exceed the ballots submitted in favor of the assessment. SECTION 5. The proposed assessments for the District are outlined in the Engineer’s Report. The Report details the proposed assessments necessary to provide for the annual operation, administration, services and maintenance of the improvements described in Section 2 of this Resolution. In subsequent years, the City Council will hold a Public Hearing for the District prior to approving the annual levy of assessments for the upcoming fiscal year. An increase to the annual assessment requires approval of that increase by the property owners through protest ballot proceedings. An increased annual assessment is defined as an assessment that is greater than the Adjusted Maximum Assessment (Initial Maximum Assessment plus the Annual Inflationary Adjustment) approved by the property owners. The initial maximum assessment and annual inflationary adjustment are outlined in the Engineer’s Report. Draft Resolution F Page Four SECTION 6. Notice is hereby given that a Public Hearing on these matters will be held by the City Council on Tuesday, August 9, 2005 at 7:00 p.m. or as soon thereafter as feasible in the regular meeting chambers of the City Council located at the Atascadero Lake Pavilion, 9315 Pismo Street, Atascadero, California, in accordance with Government Code, Section 53753 and California Constitution, Article XIIID, Section 4(e). The City shall give notice of the time and place of the Public Hearing by posting a copy of this resolution on the official bulletin board customarily used by the Council for the posting of notices and by publishing this resolution in a local newspaper pursuant to Government Code Section 6061 as outlined in the 1972 Act. As required by the California Constitution Article XIIID, those properties subject to a new or increased assessment shall be mailed a notice of the Public Hearing and a property owner ballot. Property owners being balloted for a new assessment must return their ballots to the City Clerk prior to the conclusion of the Public Hearing for tabulation. At the Public Hearing, all interested persons shall be permitted to present written and/or oral testimony. Draft Resolution F 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 Enright, City Attorney ATASCADERO STREET AND STORM DRAIN MAINTENANCE DISTRICT NO. 03 (DE ANZA ESTATES) Intent Meeting: July 12, 2005 Public Hearing: August 9, 2005 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 CITY OF ATASCADERO ENGINEER’S REPORT FOR THE FORMATION OF STREET AND STORM DRAIN MAINTENANCE DISTRICT NO. 03 (DE ANZA ESTATES) FISCAL YEAR 2005/2006 ENGINEER'S REPORT AFFIDAVIT Formation of the Atascadero Street and Storm Drain Maintenance District No. 03 (De Anza Estates) and establishment of Annual Assessments for said District The District includes all parcels of land within the residential subdivision known as De Anza Estates, Tract 2498 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. 03 (De Anza Estates) and include 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 TABLE OF CONTENTS INTRODUCTION........................................................................................................1 PART I — PLANS AND SPECIFICATIONS..............................................................4 A. Benefiting Properties within the District ............................................................4 B. Funding authorized by the 1982 Act ....................................................................4 C. Description of Improvements and Services ......................................................5 Street Maintenance............................................................................................................6 Storm Drain and Flood Control Maintenance..............................................................7 PART II — METHOD OF APPORTIONMENT.......................................................9 A. General ............................................................................................................9 B. Benefit Analysis .............................................................................................................9 C. Assessment Methodology........................................................................................10 Zones of Benefit:.............................................................................................................11 Equivalent Benefit Units:...............................................................................................12 D. Assessment Range Formula ...................................................................................16 PART III — DISTRICT BUDGET............................................................................18 PART IV — DISTRICT DIAGRAMS.........................................................................19 PART V — ASSESSMENT ROLL..............................................................................21 Engineer’s Report City of Atascadero Street and Storm Drain Maintenance District No. 03 (De Anza Estates) MuniFinancial Page 1 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. 03 (De Anza Estates) (hereafter referred to as “District”), which includes all lots and parcels of land within the residential subdivision known as De Anza Estates, Tract 2498 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 that 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 specifications for Tract 2498; and by reference these plans and specifications are made part of this Report. Engineer’s Report City of Atascadero Street and Storm Drain Maintenance District No. 03 (De Anza Estates) MuniFinancial Page 2 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, the proposed services, the annual 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. While this District includes only the residential properties within the De Anza Estates subdivision, Tract 2498, the overall development includes both single-family residential properties and a senior housing development that do not benefit equally from all the improvements. Therefore the District is being formed with two benefit zones. 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 Engineer’s Report City of Atascadero Street and Storm Drain Maintenance District No. 03 (De Anza Estates) MuniFinancial Page 3 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 or not assessed as special 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 assessments (Rates per Equivalent Benefit Unit) identified in the budget of this Report establishes the initial maximum assessments 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 rates. Engineer’s Report City of Atascadero Street and Storm Drain Maintenance District No. 03 (De Anza Estates) MuniFinancial Page 4 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 De Anza Estates, Tract 2498, which encompasses an area of land totaling approximately seventy-six acres (75.76 acres). This subdivision is planned to include twenty-six (26) Single-Family Residential Units and sixty (60) Modified Housing/Senior Housing Units at build-out. The planned subdivision is situated in the northern portion of the City of Atascadero northeast of Highway 101 and is generally located: • At the North end of El Camino Real; • North and East of U.S. HWY 101; and, • South and West of the Salinas River. The parcels within the District at the time of the Resolution of Intention are identified on the San Luis Obispo County Assessor’s Secured Roll (as of June 2005) and the Assessor’s Parcel Map as: Book 049, Page 043, Parcels 003 & 004; and, Book 049, Page 044, Parcels 002 through 033. 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. Engineer’s Report City of Atascadero Street and Storm Drain Maintenance District No. 03 (De Anza Estates) MuniFinancial Page 5 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 De Anza Estates, Tract 2498 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 2498; and the maintenance of these improvements may include but is 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, walkways, barricades, delineation, signage or other facilities within the public street right-of-ways installed in connection with the development of properties in Tract 2498 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 2498 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 wastewater treatment; • All appurtenant, equipment, materials and service contracts related to the aforementioned improvements and facilities; • 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 (or portion thereof) that may be funded 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 from those various improvements. Engineer’s Report City of Atascadero Street and Storm Drain Maintenance District No. 03 (De Anza Estates) MuniFinancial Page 6 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, and driveway approaches 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 66,000 square feet of asphalt street surface located on the interior streets of the development identified as El Camino Real north of the Upper Bridge Crossing; Ferrocarril Road from the Graves Creek Bridge northeast to the end of Tract 2498; and De Anza Court. • Approximately 5,700 linear feet of curb and gutter along El Camino Real, Ferrocarril Road, and De Anza Court, 26 driveway approaches and various street signs within the District; • Two bridges identified as the Upper Bridge Crossing (located on El Camino Real at the entryway to the tract) and the Graves Creek Bridge (located on Ferrocarril Road located at the entryway to the senior housing development); • 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 and driveway approaches is significantly more than the amount that can reasonably be collected annually under the provisions of the 1982 Act. When such repairs or activities are deemed necessary, the City will consider various financing options including new or increased assessments for property owner approval. Also not included as part of the street maintenance program are the street improvements within the senior housing development (street improvements southwest of the Graves Creek Bridge). The street improvements and facilities within the senior housing development shall be maintained and funded through a Homeowner’s Association or similar entity. The Public Works Department shall authorize all operational activities and maintenance of the public street and right-of-way improvements, facilities and services, which may include, but are not limited to: • Regular street sweeping services necessary to control dirt and debris on street surfaces and gutters; Engineer’s Report City of Atascadero Street and Storm Drain Maintenance District No. 03 (De Anza Estates) MuniFinancial Page 7 • Annual inspection of street surface and repair of potholes and surface cracks as needed; • Periodic slurry or overlay of street surfaces and driveway approaches (typically one or the other once every five years); • Periodic re-striping of traffic lanes, bike lanes, crosswalks and intersections (typically in conjunction with slurry or overlay 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, walkways and signage as needed; • Annual inspection and documentation required for all bridges as well as periodic repairs and inspections (generally conducted every other fiscal year); • Annual inspection and minor repairs of curbs, gutters and driveway approaches 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 and activities described above are not performed on an annual basis, but rather on a periodic basis such as slurry sealing or overlaying the asphalt streets. The funds necessary for these activities are to be 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 for slurry sealing or overlays). 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 Engineer’s Report City of Atascadero Street and Storm Drain Maintenance District No. 03 (De Anza Estates) MuniFinancial Page 8 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 rehabilitation of equipment and facilities. The storm drain and flood control system includes, but is not limited to: • A single drainage basin of approximately 9,000 square feet; • A total of approximately three (3) inlets, catch basins, manholes or outlets located within the single-family residential portion of Tract 2498; • Approximately 200 linear feet of 24 inch storm drain pipe; 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, outlets and pipes as needed; • Stencil maintenance and documentation of facilities as required by Federal, State or County regulations; • Cleaning and maintenance of the drainage basin 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 shall 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. Engineer’s Report City of Atascadero Street and Storm Drain Maintenance District No. 03 (De Anza Estates) MuniFinancial Page 9 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 the 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 of the various 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 Engineer’s Report City of Atascadero Street and Storm Drain Maintenance District No. 03 (De Anza Estates) MuniFinancial Page 10 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 the parcels within the District, and the absence of adequate maintenance and servicing of the District improvements could eventually have a negative impact on those properties. 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 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. Engineer’s Report City of Atascadero Street and Storm Drain Maintenance District No. 03 (De Anza Estates) MuniFinancial Page 11 Zones of Benefit: While it has been determined that the improvements to be maintained by the District are entirely a special benefit to properties within the District (no measurable general benefit), upon review of the various improvements, the location and need for such improvements and the proposed development of properties within the District, it has been determined that the improvements and services that will benefit the single-family residential properties are not identical to the improvements and services that will benefit the senior housing development, although they do share in the benefit of some of the improvements. Therefore, it has been determined that two separate zones of benefit are required to appropriately allocate the costs of maintaining the improvements and establish proportional special benefit assessments. The properties associated with the senior housing development have been identified and designated as “Zone A,” and the single-family residential properties within Tract 2498 have been identified and designated as “Zone B,” based on the improvements associated with those properties. Zone A (Senior Housing Portion of Tract 2498) — It has been determined that these properties clearly benefit and shall proportionately share in the costs associated with maintaining and servicing the Upper Bridge Crossing, El Camino Real and the western portion of Ferrocarril Road leading into these properties. It has also been determined that the construction of the Graves Creek Bridge was only necessary for the development of these properties and therefore the cost to service and maintain this facility shall be entirely allocated to these properties. Conversely, all of the storm drain improvements that will be maintained by the City within Tract 2498 have been constructed as part of developing the twenty-six single-family residential properties and it has been determined that the senior housing properties do not receive direct and special benefit from those particular improvements. While these properties will not be assessed for the storm drain improvements, it should be noted that some storm drain facilities will be constructed as part of the senior housing development; however, these improvements are not included in this District and will be provided and maintained by a Homeowner’s Association or similar entity. Zone B (Single-Family Residential Portion of Tract 2498) — Along with the properties in Zone A, all the single-family residential properties within Tract 2498 clearly benefit and shall proportionately share in the costs associated with maintaining and servicing the Upper Bridge Crossing and El Camino Real. In addition, the overall development of these particular properties required the construction and installation of all the street improvements on Ferrocarril Road and De Anza Court, as well as the entire storm drain system to be maintained by the District. Therefore the cost of maintaining and servicing these particular improvements shall be budgeted and allocated proportionately to only those properties in Zone B. Conversely, the construction of the Graves Creek Bridge was only necessary for the development of the senior housing and the properties within Zone B will not share in the cost of maintaining this particular facility. Engineer’s Report City of Atascadero Street and Storm Drain Maintenance District No. 03 (De Anza Estates) MuniFinancial Page 12 Equivalent Benefit Units: While establishing separate benefit zones within the District aids in allocating the cost of various improvements, 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, particularly for those improvements and services that are shared by both Zone A and Zone B parcels. 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 generally equates specific property characteristics to that of the single-family home site. These factors may include, but are not limited to variations in property development status, type of development (land use), and size of the property (acreage or units). 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 (both 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, triplexes, 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 Engineer’s Report City of Atascadero Street and Storm Drain Maintenance District No. 03 (De Anza Estates) MuniFinancial Page 13 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 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 with 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). Modified Housing/Senior Housing Units — Modified Housing or Senior Housing is generally defined as residential units that would typically be classified as Condominiums or Town-homes, but have specific deed restrictions that may limit the size or use of all units within the development. This classification is not applicable to individual single- family residential parcels unless all single-family residential parcels within that particular development or subdivision have the same restrictions. (For example: One or more single-family units within a subdivision that are deed restricted as “Affordable Housing” or “Senior Housing” does not qualify for this land use classification, unless all the units within that development have the same or similar deed restrictions.) Since this classification generally involves Condominium or Town-home type properties, that are generally assigned 0.75 EBU, it has been determined that an appropriate allocation of special benefit for modified housing units or senior housing units is best represented by an assignment of 0.625 EBU per unit regardless of whether each unit is assigned an individual APN or there are multiple units assigned to a single APN. 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 oftentimes 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 Engineer’s Report City of Atascadero Street and Storm Drain Maintenance District No. 03 (De Anza Estates) MuniFinancial Page 14 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) an Equivalent Benefit Unit of 1.0 EBU per acre (4 units 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 right-of-ways, 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 for which the standard land use classifications do 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 Engineer’s Report City of Atascadero Street and Storm Drain Maintenance District No. 03 (De Anza Estates) MuniFinancial Page 15 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. Land Uses and Equivalent Benefit Units 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 (by Zone). An assessment amount per EBU (Assessment Rate for each Zone) 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 those 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. For each Zone the following formulas are applied: Total Balance to Levy / Total EBU = Levy per EBU Levy per EBU x Parcel EBU = Parcel Levy Amount Property Type Equivalent Benefit Units Multiplier Single-Family Residential 1.000 per Unit/Lot/Parcel 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 Condominium/Town-home Units 0.750 per Unit Modified Housing/Senior Housing Units 0.625 per Unit 1.000 per Planned SF-Residential Lot 0.750 per Planned Condominium 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 Multi-Family Residential Planned-Residential Development Engineer’s Report City of Atascadero Street and Storm Drain Maintenance District No. 03 (De Anza Estates) MuniFinancial Page 16 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 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 increase the proportional special benefit assigned to a particular land use classification would be considered an increased assessment. Conversely, a reduction in the proportional special benefit assigned to Engineer’s Report City of Atascadero Street and Storm Drain Maintenance District No. 03 (De Anza Estates) MuniFinancial Page 17 a land use classification is permitted. Changes in land use or size of an individual property resulting in an assessment increase are 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 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. Engineer’s Report City of Atascadero Street and Storm Drain Maintenance District No. 03 (De Anza Estates) MuniFinancial Page 18 PART III — DISTRICT BUDGET The proposed Maximum Assessments per EBU shown above are based on the cost of providing the District improvements and does not include any other assessments or charges imposed on the properties. Based on the budget and calculated assessments above, the initial maximum assessment for a single Senior Housing Unit in Zone A would be $308.90 ($494.24 x 0.625 EBU); the initial maximum assessment for a Single-Family Residential Unit in Zone B would be $611.04 ($611.04 x 1.00 EBU). Budget Items Build-out 1st Year Build-out 1st Year Build-out 1st Year DIRECT COSTS Streets & Roads Annual Inspection & Maintenance: Street Surfaces 383 383 574 574 957 957 Annual Inspection & Maintenance: Curbs, Gutters, & Approaches 182 182 482 482 664 664 Annual Inspection & Maintenance: Signs, Barricades & Other Right-of-Way Facilities 12 12 12 12 24 24 Mechanized Cleaning & Sweeping: Streets 228 228 342 342 570 570 Annual Inspection & Documentation: Bridges 400 400 100 100 500 500 Periodic Asphalt Slurry Seal: Streets 1,848 1,848 2,772 2,772 4,620 4,620 Periodic Asphalt Overlay: Streets 2,640 2,640 3,960 3,960 6,600 6,600 Periodic Repairs/Rehabilitation: Non-Asphalt Street Surfaces - - - - - - Periodic Street Re-striping 24 24 35 35 59 59 Periodic Repair Activities: Curbs, Gutters, & Approaches 48 48 162 162 210 210 Periodic Maintenance & Inspection: Bridges 8,200 8,200 2,050 2,050 10,250 10,250 Total Annual Funding: Streets 13,965$ 13,965$ 10,489$ 10,489$ 24,454$ 24,454$ Storm Drain System Annual Inspection & Maintenance: Drainage Basins and/or Channelways - - 1,530 1,530 1,530 1,530 Annual Inspection, Maintenance & Cleaning: Inlets, Catch Basins, Manholes & Outlets - - 43 43 43 43 Annual Inspection & Maintenance: Storm Drain Pipes - - 38 38 38 38 Periodic Debris Removal, Rehabilitation & Repairs: Basin & Channelway Surfaces - - 225 225 225 225 Periodic Repairs & Rehabilitation: Storm Drain Infrastructure & Facilities - - 56 56 56 56 Total Annual Funding: Storm Drain Improvements -$ -$ 1,892$ 1,892$ 1,892$ 1,892$ ADMINISTRATION EXPENSES City Administration & Overhead 1,117 1,117 990 990 2,107 2,107 Professional Fees & Services 2,452 2,452 1,677 1,677 4,129 4,129 County Administration Fee 27 27 15 15 42 42 Miscellaneous Administration Expenses 90 90 67 67 157 157 Total Administration Costs 3,686$ 3,686$ 2,749$ 2,749$ 6,435$ 6,435$ LEVY ADJUSTMENTS Reserve Fund Collection/(Transfer)883 883 757 757 1,640 1,640 Contribution from Other Sources - - - - - - General Benefit Contribution - - - - - - Total Levy Adjustments 883$ 883$ 757$ 757$ 1,640$ 1,640$ BALANCE TO LEVY 18,534$ 18,534$ 15,887$ 15,887$ 34,421$ 34,421$ DISTRICT STATISTICS Total Parcels 66 6 28 28 94 34 Parcels Levied 60 6 26 26 86 32 Total EBU 37.5000 37.5000 26.0000 26.0000 63.5000 63.5000 Proposed Levy per EBU $494.24 $494.24 $611.04 $611.04 Maximum Levy per EBU $494.24 $494.24 $611.04 $611.04 FUND BALANCE INFORMATION District Fund Balances (Reserves & CIP) — Beginning Balance $0 $0 $0 $0 $0 $0 District Fund Balances (Reserves & CIP) — Total Collections/(Transfers) 13,643 883 10,017 3,718 23,660 4,601 Estimated Ending Fund Balance (Reserves & CIP)13,643$ 883$ 10,017$ 3,718$ 23,660$ 4,601$ Amount Assessed Zone A (Senior Housing) Zone B (SF-Residents) Engineer’s Report City of Atascadero Street and Storm Drain Maintenance District No. 03 (De Anza Estates) MuniFinancial Page 19 PART IV — DISTRICT DIAGRAMS The parcels within the Street and Storm Drain Maintenance District No. 03 (De Anza Estates) consist of all lots, parcels and subdivisions of land located in the planned residential development known as De Anza Estates, Tract 2498. The District covers approximately seventy-six acres (75.79 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. ASSESSMENT DIAGRAM FOR STREET AND STORM DRAIN MAINTENANCE DISTRICT NO. 03 (DE ANZA ESTATES) CITY OF ATASCADERO, COUNTY OF SAN LUIS OBISPO, STATE OF CALIFORNIA MuniFinancial Page 20 Engineer’s Report City of Atascadero Street and Storm Drain Maintenance District No. 03 (De Anza Estates) MuniFinancial Page 21 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: Engineer’s Report City of Atascadero Street and Storm Drain Maintenance District No. 03 (De Anza Estates) MuniFinancial Page 22 Assessor’s Proposed First Parcel Maximum Year's Number Tract Lot Zone Designated Land Use EBU Assessment Assessment 049-043-003 2498 33 B Open Space - $0.00 $0.00 049-043-004 2498 B Roads and Easements - $0.00 $0.00 049-044-002 2498 2 B Single Family Residential 1.00 $611.04 $611.04 049-044-003 2498 3 B Single Family Residential 1.00 $611.04 $611.04 049-044-004 2498 4 B Single Family Residential 1.00 $611.04 $611.04 049-044-005 2498 5 B Single Family Residential 1.00 $611.04 $611.04 049-044-006 2498 6 B Single Family Residential 1.00 $611.04 $611.04 049-044-007 2498 7 B Single Family Residential 1.00 $611.04 $611.04 049-044-008 2498 8 B Single Family Residential 1.00 $611.04 $611.04 049-044-009 2498 9 B Single Family Residential 1.00 $611.04 $611.04 049-044-010 2498 10 B Single Family Residential 1.00 $611.04 $611.04 049-044-011 2498 11 B Single Family Residential 1.00 $611.04 $611.04 049-044-012 2498 12 B Single Family Residential 1.00 $611.04 $611.04 049-044-013 2498 13 B Single Family Residential 1.00 $611.04 $611.04 049-044-014 2498 14 B Single Family Residential 1.00 $611.04 $611.04 049-044-015 2498 15 B Single Family Residential 1.00 $611.04 $611.04 049-044-016 2498 16 B Single Family Residential 1.00 $611.04 $611.04 049-044-017 2498 17 B Single Family Residential 1.00 $611.04 $611.04 049-044-018 2498 18 B Single Family Residential 1.00 $611.04 $611.04 049-044-019 2498 19 B Single Family Residential 1.00 $611.04 $611.04 049-044-020 2498 20 B Single Family Residential 1.00 $611.04 $611.04 049-044-021 2498 21 B Single Family Residential 1.00 $611.04 $611.04 049-044-022 2498 22 B Single Family Residential 1.00 $611.04 $611.04 049-044-023 2498 23 B Single Family Residential 1.00 $611.04 $611.04 049-044-024 2498 24 B Single Family Residential 1.00 $611.04 $611.04 049-044-025 2498 25 B Single Family Residential 1.00 $611.04 $611.04 049-044-026 2498 26 B Single Family Residential 1.00 $611.04 $611.04 049-044-027 2498 27 A Multi Family Residential 7.50 $3,706.80 $3,706.80 049-044-028 2498 28 A Multi Family Residential 6.88 $3,397.90 $3,397.90 049-044-029 2498 29 A Multi Family Residential 5.63 $2,780.10 $2,780.10 049-044-030 2498 30 A Multi Family Residential 7.50 $3,706.80 $3,706.80 049-044-031 2498 31 A Multi Family Residential 5.00 $2,471.20 $2,471.20 049-044-032 2498 32 A Multi Family Residential 5.00 $2,471.20 $2,471.20 049-044-033 2498 1 B Single Family Residential 1.00 $611.04 $611.04 Totals 34 63.50 $34,421.04 $34,421.04 ATASCADERO LANDSCAPING AND LIGHTING DISTRICT NO. 03 (DE ANZA ESTATES) Intent Meeting: July 12, 2005 Public Hearing: August 9, 2005 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 CITY OF ATASCADERO ENGINEER’S REPORT FOR THE FORMATION OF LANDSCAPING AND LIGHTING DISTRICT NO. 03 (DE ANZA ESTATES) FISCAL YEAR 2005/2006 ENGINEER'S REPORT AFFIDAVIT Formation of the Atascadero Landscaping and Lighting District No. 03 (De Anza Estates) and establishment of Annual Assessments for said District The District includes all parcels of land within the residential subdivision known as De Anza Estates, Tract 2498 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. 03 (De Anza Estates) and include 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 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 ...................................................................................15 PART III — DISTRICT BUDGET............................................................................17 PART IV — DISTRICT DIAGRAMS.........................................................................18 PART V — ASSESSMENT ROLL..............................................................................20 Engineer’s Report City of Atascadero Landscaping and Lighting District No. 03 (De Anza Estates) MuniFinancial Page 1 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. 03 (De Anza Estates) (hereafter referred to as “District”), which includes all lots and parcels of land within the residential subdivision known as De Anza Estates, Tract 2498 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 that 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 2498; and by reference these plans and specifications are made part of this Report. Engineer’s Report City of Atascadero Landscaping and Lighting District No. 03 (De Anza Estates) MuniFinancial Page 2 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 part of the De Anza Estates, subdivision, Tract 2498. 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 Engineer’s Report City of Atascadero Landscaping and Lighting District No. 03 (De Anza Estates) MuniFinancial Page 3 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. Engineer’s Report City of Atascadero Landscaping and Lighting District No. 03 (De Anza Estates) MuniFinancial Page 4 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 subdivision known as the De Anza Estates, Tract 2498, which encompasses an area of land totaling approximately seventy-six acres (75.76 acres). This subdivision is planned to include twenty-six (26) Single-Family Residential Units and sixty (60) Modified Housing/Senior Housing Units at build-out. The planned subdivision is situated in the northern portion of the City of Atascadero northeast of Highway 101 and is generally located: • At the North end of El Camino Real; • North and East of U.S. HWY 101; and, • South and West of the Salinas River. The parcels within the District at the time of the Resolution of Intention are identified on the San Luis Obispo County Assessor’s Secured Roll (as of June 2005) and the Assessor’s Parcel Map as: Book 049, Page 043, Parcels 003 & 004; and, Book 049, Page 044, Parcels 002 through 033. 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: Engineer’s Report City of Atascadero Landscaping and Lighting District No. 03 (De Anza Estates) MuniFinancial Page 5 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; f) 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; f) 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 open space improvements established or installed in connection with development of properties within the District. The improvements may consist of all or Engineer’s Report City of Atascadero Landscaping and Lighting District No. 03 (De Anza Estates) MuniFinancial Page 6 a portion of the public landscaped areas, open space areas and appurtenant facilities within and adjacent to the District (Tract 2498). 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 the landscaped parkways, trails, drainage basin, open space areas and other designated landscape 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 Tract 2498. The improvements to be maintained and funded entirely or partially through the District assessments are generally described as: • Streetscape landscaping including trees, vegetation, irrigation systems and hardscape improvements located within the public right-of-ways or easements on the public streets constructed as part of Tract 2498 and dedicated to the City for maintenance; • Open space areas and fuel modification areas within or adjacent to the District boundaries including the landscaping and slopes associated with the drainage basin; • Trail system within and adjacent to the open space areas and street right-of-ways within the boundaries of Tract 2498 including both paved and unpaved trail surfaces, adjacent landscaping and fencing; and • 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 (or portion thereof) that may be funded 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. In particular for this District, the annual cost to maintain the Horse Arena has been included in the District budget, but shall not be funded by the assessments. Similarly, only a portion of the cost to maintain the open space area within the District is to be funded by 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, trail surfaces, hardscape improvements, monuments, and associated appurtenant facilities located within the open space areas, landscape easements or Engineer’s Report City of Atascadero Landscaping and Lighting District No. 03 (De Anza Estates) MuniFinancial Page 7 public right-of-ways dedicated to the City for maintenance. Specifically the landscape improvement areas for this District are identified as: • Approximately 43,560 square feet of streetscape (parkway embankment) landscaping within the public right-of-ways located on El Camino Real within the boundaries of Tract 2498; • An estimated 150 trees, including trees within the landscaped area on El Camino Real, various trees within the open space area and the street trees within the street right-of-way on Ferrocarril Road; • Approximately fifty-one (51) acres of non-irrigated open space area within the District; • Approximately 48,000 square feet of paved and unpaved trails; and 2,600 linear feet of steel rail fencing along the trail system and landscaped areas. Public Lighting Improvements The approved development plans for Tract 2498 do not include any proposed street light facilities. Engineer’s Report City of Atascadero Landscaping and Lighting District No. 03 (De Anza Estates) MuniFinancial Page 8 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 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 is enhanced by the presence of well- maintained landscaping, trail systems and open space areas in close proximity to those Engineer’s Report City of Atascadero Landscaping and Lighting District No. 03 (De Anza Estates) MuniFinancial Page 9 properties and that these improvements not only provide special benefits to the properties, but also benefit the property owners, residents and tenants of those properties. Some of the special benefits associated with landscape and open space improvements are: • 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, open 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 and recreational opportunities through well-maintained trails, open 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. 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 could have a negative impact on the properties within the District. General Benefit Upon 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, constructing and maintaining such improvements, it is evident that the properties within the District receive special benefit from those improvements. While the District improvements clearly include public areas, easements, right-of-ways and other amenities available or visible to the public at large, the landscaped areas, trails, detention basin as well as the need to increase maintenance activities within the open space areas resulted solely from the development of properties within the District and would otherwise not have been required nor 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 these 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. However, while this development has facilitated a need for Engineer’s Report City of Atascadero Landscaping and Lighting District No. 03 (De Anza Estates) MuniFinancial Page 10 increased maintenance of the open space area associated with Tract 2498, it is also recognized that land conservation and ensuring adequate open space areas within the City does have some indirect, but not quantifiable, benefit to the community at large. Therefore, while the entire cost to maintain the open space area as well as the Horse Arena facility have been incorporated into the District budget, the annual cost to maintain the arena and a portion of the open space area are not included in the proposed special benefit assessments. These costs will be funded by other revenue sources available to the City. 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 each parcel as compared to other parcels within the District. The net cost of the various improvements is fairly distributed among all benefiting parcels based on their proportional special benefit. 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 property development within the District. Upon review of the proposed improvements and the planned development of properties within the District, it has been determined that a single zone of benefit is appropriate for the allocation of the assessments and proportional benefit. Equivalent Benefit Units: 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 generally equates specific property characteristics to that of the single-family home site. These factors may include, but are not limited to variations in property development status, type of development (land use), and size of the property (acreage or units). 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 (both 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 Engineer’s Report City of Atascadero Landscaping and Lighting District No. 03 (De Anza Estates) MuniFinancial Page 11 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, triplexes, 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 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 with 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). Engineer’s Report City of Atascadero Landscaping and Lighting District No. 03 (De Anza Estates) MuniFinancial Page 12 Modified Housing/Senior Housing Units — Modified Housing or Senior Housing is generally defined as residential units that would typically be classified as Condominiums or Town-homes, but have specific deed restrictions that may limit the size or use of all units within the development. This classification is not applicable to individual single- family residential parcels unless all single-family residential parcels within that particular development or subdivision have the same restrictions. (For example: One or more single-family units within a subdivision that are deed restricted as “Affordable Housing” or “Senior Housing” does not qualify for this land use classification, unless all the units within that development have the same or similar deed restrictions.) Since this classification generally involves Condominium or Town-home type properties, that are generally assigned 0.75 EBU, it has been determined that an appropriate allocation of special benefit for modified housing units or senior housing units is best represented by an assignment of 0.625 EBU per unit regardless of whether each unit is assigned an individual APN or there are multiple units assigned to a single APN. 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 oftentimes 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) an Equivalent Benefit Unit of 1.0 EBU per acre (4 units 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 Engineer’s Report City of Atascadero Landscaping and Lighting District No. 03 (De Anza Estates) MuniFinancial Page 13 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 right-of-ways, 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 for which the standard land use classifications do 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. Engineer’s Report City of Atascadero Landscaping and Lighting District No. 03 (De Anza Estates) MuniFinancial Page 14 The following table provides a summary of land use classifications and the Equivalent Benefit Unit calculations previously outlined. Land Uses and Equivalent Benefit Units 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 Property Type Equivalent Benefit Units Multiplier Single-Family Residential 1.000 per Unit/Lot/Parcel 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 Condominium/Town-home Units 0.750 per Unit Modified Housing/Senior Housing Units 0.625 per Unit 1.000 per Planned SF-Residential Lot 0.750 per Planned Condominium 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 Multi-Family Residential Planned-Residential Development Engineer’s Report City of Atascadero Landscaping and Lighting District No. 03 (De Anza Estates) MuniFinancial Page 15 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 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 increase the proportional special benefit assigned to a particular land use classification would be considered an increased assessment. Conversely, a reduction in the proportional special benefit assigned to Engineer’s Report City of Atascadero Landscaping and Lighting District No. 03 (De Anza Estates) MuniFinancial Page 16 a land use classification is permitted. Changes in land use or size of an individual property resulting in an assessment increase are 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 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. Engineer’s Report City of Atascadero Landscaping and Lighting District No. 03 (De Anza Estates) MuniFinancial Page 17 PART III — DISTRICT BUDGET 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 special benefit, up to 50% of the open space maintenance and all of the costs associated the Horse Arena shall be funded by other sources. This is reflected in the budget as a contribution from other sources. Total Expenses Total Assessed Total Assessed Budget Not Assessed Tract 2498 Tract 2498 BUDGET ITEM Build-out Build-out Build-out 1st Year ANNUAL MAINTENANCE (DIRECT COSTS) Parkway Maintenance 16,204 - 16,204 16,204 Trail Maintenance 5,185 - 5,185 5,185 Park & Open Space Maintenance 29,444 14,722 14,722 14,722 Specialized Service Area or Landscaping (1)3,075 3,075 - - Tree Maintenance 857 73 784 784 Landscape Utilities (Water/Electricity)3,920 - 3,920 3,920 Miscellenaous Materials & Equipment (Landscaping & Trees)1,369 447 922 922 Total Landscaping & Lighting Maintenance 60,054 18,317 41,737 41,737 ADMINISTRATION City Administration Overhead 4,804 1,465 3,339 3,339 Professional Fees for Admin 3,629 - 3,629 3,629 County Administration Fee 67 - 67 67 Miscellaneous Administration Expenses 85 15 70 70 Total Administration 8,585 1,480 7,105 7,105 REPLACEMENT/REHABILITATION (CIP) Collection for Landscape Rehabilitaion/Replacement Fund 3,945 1,007 2,938 2,938 Collection for Tree Rehabilitaion/Replacement Fund 1,259 52 1,207 1,207 Total Capital Improvement /Rehabilitation Budget 5,204 1,059 4,145 4,145 Total Costs & Expenses $73,843 $20,856 $52,987 $52,987 LEVY ADJUSTMENTS Reserve Fund Collection (Transfer)2,649 - 2,649 2,649 Revenues from Other Sources (Contribution)(20,856) (20,856) - - General Benefit (Contribution)- - - - Total Levy Adjustments (18,207) (20,856) 2,649 2,649 Balance to Levy 55,636$ -$ 55,636$ 55,636$ DISTRICT STATISTICS Total Parcels 94 34 Parcels Levied 86 32 Total EBU 63.50 63.50 Levy per EBU 876.16$ 876.16$ Maximum Levy per EBU 876.16$ 876.16$ FUND BALANCE INFORMATION Fund Balances (Reserves & CIP) — Beginning Balance - - - Fund Balances (Reserves & CIP) — Total Collections/(Transfers) 6,794 6,794 6,794 Estimated Ending Fund Balance (Reserves & CIP)6,794$ 6,794$ 6,794$ Engineer’s Report City of Atascadero Landscaping and Lighting District No. 03 (De Anza Estates) MuniFinancial Page 18 PART IV — DISTRICT DIAGRAMS The parcels within the Landscaping and Lighting District No. 03 (De Anza Estates) consist of all lots, parcels and subdivisions of land located in the planned residential development known as De Anza Estates, Tract 2498. The District covers approximately seventy-six acres (75.79 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. ASSESSMENT DIAGRAM FOR LANDSCAPING AND LIGHTING DISTRICT NO. 03 (DE ANZA ESTATES) CITY OF ATASCADERO, COUNTY OF SAN LUIS OBISPO, STATE OF CALIFORNIA MuniFinancial Page 19 Engineer’s Report City of Atascadero Landscaping and Lighting District No. 03 (De Anza Estates) MuniFinancial Page 20 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: Engineer’s Report City of Atascadero Landscaping and Lighting District No. 03 (De Anza Estates) MuniFinancial Page 21 Assessor’s Proposed First Parcel Total Maximum Year's Number Designated Land Use Acres Units EBU Assessment Assessment 049-043-003 Open Space 51.51 - - $0.00 $0.00 049-043-004 Roads and Easements 4.32 - - $0.00 $0.00 049-044-002 Single Family Residential 0.50 1 1.0000 $876.16 $876.16 049-044-003 Single Family Residential 0.47 1 1.0000 $876.16 $876.16 049-044-004 Single Family Residential 0.59 1 1.0000 $876.16 $876.16 049-044-005 Single Family Residential 0.40 1 1.0000 $876.16 $876.16 049-044-006 Single Family Residential 0.36 1 1.0000 $876.16 $876.16 049-044-007 Single Family Residential 0.34 1 1.0000 $876.16 $876.16 049-044-008 Single Family Residential 0.34 1 1.0000 $876.16 $876.16 049-044-009 Single Family Residential 0.35 1 1.0000 $876.16 $876.16 049-044-010 Single Family Residential 0.41 1 1.0000 $876.16 $876.16 049-044-011 Single Family Residential 0.55 1 1.0000 $876.16 $876.16 049-044-012 Single Family Residential 0.51 1 1.0000 $876.16 $876.16 049-044-013 Single Family Residential 0.54 1 1.0000 $876.16 $876.16 049-044-014 Single Family Residential 0.49 1 1.0000 $876.16 $876.16 049-044-015 Single Family Residential 0.56 1 1.0000 $876.16 $876.16 049-044-016 Single Family Residential 0.63 1 1.0000 $876.16 $876.16 049-044-017 Single Family Residential 0.23 1 1.0000 $876.16 $876.16 049-044-018 Single Family Residential 0.47 1 1.0000 $876.16 $876.16 049-044-019 Single Family Residential 0.37 1 1.0000 $876.16 $876.16 049-044-020 Single Family Residential 0.43 1 1.0000 $876.16 $876.16 049-044-021 Single Family Residential 0.42 1 1.0000 $876.16 $876.16 049-044-022 Single Family Residential 0.30 1 1.0000 $876.16 $876.16 049-044-023 Single Family Residential 0.34 1 1.0000 $876.16 $876.16 049-044-024 Single Family Residential 0.71 1 1.0000 $876.16 $876.16 049-044-025 Single Family Residential 0.72 1 1.0000 $876.16 $876.16 049-044-026 Single Family Residential 0.58 1 1.0000 $876.16 $876.16 049-044-027 Multi Family Residential 1.54 12 7.5000 $6,571.20 $6,571.20 049-044-028 Multi Family Residential 2.57 11 6.8750 $6,023.60 $6,023.60 049-044-029 Multi Family Residential 0.70 9 5.6250 $4,928.40 $4,928.40 049-044-030 Multi Family Residential 0.93 12 7.5000 $6,571.20 $6,571.20 049-044-031 Multi Family Residential 0.60 8 5.0000 $4,380.80 $4,380.80 049-044-032 Multi Family Residential 0.86 8 5.0000 $4,380.80 $4,380.80 049-044-033 Single Family Residential 1.15 1 1.0000 $876.16 $876.16 34 75.79 86 63.5000 $55,636.16 $55,636.16