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HomeMy WebLinkAbout050812 CC Agenda-combined . yl 'a`$ i979CITY OF A TASCADERO CITY COUNCIL AGENDA Tuesday, May 8, 2012 City Hall Council Chambers 6907 EI Camino Real, Atascadero, California City Council Special Meeting — Roundtable Study Session: 4:45 p.m. City Council Regular Session: 6:00 p.m. REGULAR SESSION — CALL TO ORDER: 6:00 P.M. PLEDGE OF ALLEGIANCE: Mayor Kelley ROLL CALL: Mayor Kelley Mayor Pro Tem O'Malley Council Member Clay Council Member Fonzi Council Member Sturtevant APPROVAL OF AGENDA: Roll Call PRESENTATION: 1. Recognition of Adopt-A-Facility Volunteers for Their Assistance with Maintenance of City Facilities 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. DRAFT MINUTES: Council meeting draft minutes are listed on the Consent Calendar for approval of the minutes. Should anyone wish to request an amendment to draft minutes, the item will be removed from the Consent Calendar and their suggestion will be considered by the City Council. If anyone desires to express their opinion concerning issues included in draft minutes, they should share their opinion during the Community Forum portion of the meeting.) 1. City Council Draft Action Minutes — April 24, 2012 ■ Recommendation: Council approve the City Council Draft Action Minutes of April 24, 2012. [City Clerk] 2. March 2012 Investment Report ■ Fiscal Impact: None. ■ Recommendation: Council receive and file the City Treasurer's report for quarter ending March 2012. [Administrative Services] 3. Apple Valley Assessment Districts ■ Fiscal Impact: Annual assessments for 2012/2013 will total $40,740 for road/drainage system maintenance and $49,000 for landscape and lighting maintenance. These amounts will be assessed to the owners of parcels in Apple Valley. ■ Recommendations: Council: 1. Adopt Draft Resolution A initiating proceedings for the levy and collection of annual assessments for Atascadero Street and Storm Drain Maintenance District No. 01 (Apple Valley) for fiscal year 2012/2013; and, 2. Adopt Draft Resolution B accepting and preliminarily approving the Engineer's Annual Levy Report regarding the Atascadero Street and Storm Drain Maintenance District No. 01 (Apple Valley); and, 3. Adopt Draft Resolution C declaring the City's intention to levy and collect annual assessments within Atascadero Street and Storm Drain Maintenance District No. 01 (Apple Valley) in fiscal year 2012/2013, and to appoint a time and place for the public hearing on these matters; and, 4. Adopt Draft Resolution D initiating proceedings for annual levy of assessments for the Atascadero Landscaping and Lighting Maintenance District No. 01 (Apple Valley) for fiscal year 2012/2013 pursuant to the provisions of Part 2 of Division 15 of the California Streets and Highways Code; and, 5. Adopt Draft Resolution E for preliminary approval of the Annual Engineer's Levy Report for the Atascadero Landscaping and Lighting Maintenance District No. 01 (Apple Valley) for fiscal year 2012/2013; and, 6. Adopt Draft Resolution F declaring the City's intention to levy and collect assessments for the Atascadero Landscaping and Lighting Maintenance District No. 01 (Apple Valley) for fiscal year 2012/2013. [Administrative Services] 4. De Anza Estates Assessment Districts ■ Fiscal Impact: Annual assessments for 2012/2013 will total $40,091 for road/drainage system maintenance and $15,875 for landscape and lighting maintenance. These amounts will be assessed to the owners of parcels in De Anza Estates. The City General Fund will contribute $1,500 for the fiscal year 2012/2013 for half of the maintenance costs of the trails and open space. ■ Recommendations: Council: 1. Adopt Draft Resolution A initiating proceedings for the levy and collection of annual assessments for Atascadero Street and Storm Drain Maintenance District No. 03 (De Anza Estates) for fiscal year 2012/2013; and, 2. Adopt Draft Resolution B accepting and preliminarily approving the Engineer's Annual Levy Report regarding the Atascadero Street and Storm Drain Maintenance District No. 03 (De Anza Estates); and, 3. Adopt Draft Resolution C declaring the City's intention to levy and collect annual assessments within Atascadero Street and Storm Drain Maintenance District No. 03 (De Anza Estates) in fiscal year 2012/2013, and to appoint a time and place for the public hearing on these matters; and, 4. Adopt Draft Resolution D initiating proceedings for annual levy of assessments for the Atascadero Landscaping and Lighting Maintenance District No. 03 (De Anza Estates) for fiscal year 2012/2013 pursuant to the provisions of Part 2 of Division 15 of the California Streets and Highways Code; and, 5. Adopt Draft Resolution E for preliminary approval of the Annual Engineer's Levy Report for the Atascadero Landscaping and Lighting Maintenance District No. 03 (De Anza Estates) for fiscal year 2012/2013; and, 6. Adopt Draft Resolution F declaring the City's intention to levy and collect assessments for the Atascadero Landscaping and Lighting Maintenance District No. 03 (De Anza Estates) for fiscal year 2012/2013. [Administrative Services] 5. Las Lomas (Woodridge) Assessment Districts ■ Fiscal Impact: Annual assessments for 2012/2013 will total $23,741 for road/drainage system maintenance and $81,652 for landscape and lighting maintenance. These amounts will be assessed to the owners of parcels in Woodridge. ■ Recommendations: Council: 1. Adopt Draft Resolution A initiating proceedings for the levy and collection of annual assessments for Atascadero Street and Storm Drain Maintenance District No. 02 (Woodridge) for fiscal year 2012/2013; and, 2. Adopt Draft Resolution B accepting and preliminarily approving the Engineer's Annual Levy Report regarding the Atascadero Street and Storm Drain Maintenance District No. 02 (Woodridge); and, 3. Adopt Draft Resolution C declaring the City's intention to levy and collect annual assessments within Atascadero Street and Storm Drain Maintenance District No. 02 (Woodridge) in fiscal year 2012/2013, and to appoint a time and place for the public hearing on these matters; and, 4. Adopt Draft Resolution D initiating proceedings for annual levy of assessments for the Atascadero Landscaping and Lighting Maintenance District No. 02 (Woodridge) for fiscal year 2012/2013 pursuant to the provisions of Part 2 of Division 15 of the California Streets and Highways Code; and, 5. Adopt Draft Resolution E for preliminary approval of the Annual Engineer's Levy Report for the Atascadero Landscaping and Lighting Maintenance District No. 02 (Woodridge) for fiscal year 2012/2013; and, 6. Adopt Draft Resolution F declaring the City's intention to levy and collect assessments for the Atascadero Landscaping and Lighting Maintenance District No. 02 (Woodridge) for fiscal year 2012/2013. [Administrative Services] 6. Atascadero Avenue Cold In-Place Recyling Road Rehabilitation Project Award - City Bid No. 2012-003 ■ Fiscal Impact: $603,955.70 in budgeted Local Transportation Funds and Urban State Highway Account Funds. ■ Recommendations: Council: 1. Authorize the City Manager to execute a contract with Ferravanti Grading and Paving in the amount of $603,955.70 for construction of the Atascadero Avenue Cold In-Place Recycling Road Rehabilitation Project; and, 2. Authorize the Public Works Director to intermittently close portions of Atascadero Avenue during the construction period; and, 3. Authorize the Director of Public Works to file a Notice of Completion with the County Recorder upon satisfactory completion of the project. [Public Works] 7. Purchase of Wastewater Portable Bypass Pump ■ Fiscal Impact: $50,000 in budgeted wastewater funds and $1 ,500 in wastewater reserves for the Wastewater Portable Generator Project. ■ Recommendations: Council: 1. Approve the purchase of a Portable Bypass Pump for $50,405 from Griffin Dewatering Corporation; and, 2. Authorize the Director of Finance to appropriate an additional $1,500 of wastewater funds to complete the purchase. [Public Works] 8. Transit Center Project Award - City Bid No. 2012-002 ■ Fiscal Impact: $ 664,210.78 in budgeted Prop 1 B funds. ■ Recommendations: Council: 1. Authorize the City Manager to execute a contract with Pickard & Butters Construction in the amount of $624,340.78 for construction of the Transit Center Base Bid Project; and, 2. Award Additive Alternate A in the amount of $39,870 and include the additional work in the Base Bid contract with Pickard & Butters Construction; and, 3. Authorize the Public Works Director to intermittently close portions of Capistrano Road and Lewis Avenue during the construction period; and, 4. Authorize the Director of Public Works to file a Notice of Completion with the County Recorder upon satisfactory completion of the project. [Public Works] UPDATES FROM THE CITY MANAGER: (The City Manager will give an oral report on any current issues of concern to the City Council.) 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 three minutes. Please state your name for the record before making your presentation. Comments made during Community Forum will not be a subject of discussion. A maximum of 30 minutes will be allowed for Community Forum, unless changed by the Council. Any members of the public who have questions or need information, may contact the City Clerk's Office, between the hours of 8:30 a.m. and 5:00 p.m. at 470-3400, or mtorgerson atascadero.org.) B. PUBLIC HEARING: 1. Authorizing an Amendment to the Contract between the City Council of the City of Atascadero and the Board of Administration of the California Public Employees' Retirement System ■ Fiscal Impact: Over time, the two-tiered retirement contracts are expected to save the City money. ■ Recommendations: Council: 1. Adopt the Draft Resolution of Intention to approve an amendment to the contract between the Board of Administration of the California Public Employees' Retirement System and the City Council of the City of Atascadero; and, 2. Introduce for first reading by title only, the Draft Ordinance authorizing the Mayor to execute an amendment to the contract between the City Council of the City of Atascadero and the Board of Administration of the California Public Employees' Retirement System. [Administrative Services] C. MANAGEMENT REPORTS: 1. North County Transit Plan Presentation ■ Fiscal Impact: There is no fiscal impact for the Council to receive and file this report. There are potential unknown financial impacts to the City over the long-term, as TDA revenue is directed to transit operators. ■ Recommendation: Council receive and file this report after presentation of the draft North County Transit Plan by SLOCOG transit consultant. [Public Works] 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.) D. COMMITTEE REPORTS: (The following represent standing committees. Informative status reports will be given, as felt necessary): Mayor Kelley 1. Atascadero State Hospital Advisory Committee 2. City of Atascadero Design Review Committee 3. City of Atascadero Finance Committee 4. County Mayors Round Table 5. Economic Vitality Corporation, Board of Directors (EVC) 6. Homeless Services Oversight Council 7. Oversight Board for the Successor Agency to the Community Redevelopment Agency of Atascadero Mayor Pro Tem O'Malley 1. City/ Schools Committee 2. Integrated Waste Management Authority (IWMA) 3. League of California Cities — CITIPAC Board Member 4. SLO Council of Governments (SLOCOG) 5. SLO Regional Transit Authority (SLORTA) Council Member Fonzi 1. Air Pollution Control District 2. City of Atascadero Design Review Committee 3. City of Atascadero Finance Committee 4. SLO Local Agency Formation Commission (LAFCo) - alternate Council Member Sturtevant 1. City/ Schools Committee 2. Community Action Partnership of SLO County 3. League of California Cities — Council Liaison E. INDIVIDUAL DETERMINATION AND / OR ACTION: 1. City Council 2. City Clerk 3. City Treasurer 4. City Attorney 5. City Manager F. 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, Victoria Randall, Deputy City Clerk of the City of Atascadero, declare under the penalty of perjury that the foregoing agenda for the May 8, 2012 Regular Session of the Atascadero City Council was posted on May 1, 2012, at the Atascadero City Hall, 6907 EI Camino Real, Atascadero, CA 93422 and was available for public review in the Customer Service Center at that location. Signed this 1St day of May, 2012, at Atascadero, California. Victoria Randall, 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 6:00 p.m. unless there is a Community Redevelopment Agency meeting commencing at 6:00 p.m. in which event the Council meeting will commence immediately following the conclusion of the Community Redevelopment Agency meeting. Council meetings will be held at the City Hall Council Chambers, 6907 EI Camino Real, Atascadero. Matters are considered by the Council in the order of the printed Agenda. Regular Council meetings are televised live, audio recorded and videotaped for future playback. Charter Communication customers may view the meetings on Charter Cable Channel 20 or via the City's website at www.atascadero.org. Meetings are also broadcast on radio station KPRL AM 1230. Contact the City Clerk for more information (470-3400). 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 business hours at the Front Counter of City Hall, 6907 EI Camino Real, Atascadero, 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) 470-3400. 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 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 approach the lectern and be recognized. 1. Give your name for the record (not required) 2. State the nature of your business. 3. All comments are limited to 3 minutes. 4. All comments should be made to the Mayor and Council. 5. No person shall be permitted to make slanderous, profane or negative personal remarks concerning any other individual, absent or present 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). 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. Digital presentations must be brought to the meeting on a USB drive or CD. 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. TO SPEAK ON AGENDA ITEMS (from Title 2, Chapter 1 of the Atascadero Municipal Code) 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 lectern. If you wish to speak for, against or comment in any way: 1. You must approach the lectern and be recognized by the Mayor 2. Give your name (not required) 3. Make your statement 4. All comments should be made to the Mayor and Council 5. No person shall be permitted to make slanderous, profane or negative personal remarks concerning any other individual, absent or present 6. All comments limited to 3 minutes The Mayor will announce when the public comment period is closed, and thereafter, no further public comments will be heard by the Council. ITEM NUMBER: A- 1 DATE: 05/08/12 R FT - y �i19y 1818 R 1979 \ -4- CAD]Ro CITY OF ATASCADERO CITY COUNCIL DRAFT ACTION MINUTES Tuesday, April 24, 2012 City Hall Council Chambers 6907 EI Camino Real, Atascadero, California City Council Closed Session: 4:45 p.m. City Council Regular Session: 6:00 p.m. CITY COUNCIL CLOSED SESSION: 4:45 P.M. Mayor Kelley announced at 4:47 p.m. that the Council is going into Closed Session. 1. CLOSED SESSION -- PUBLIC COMMENT - None 2. COUNCIL LEAVES CHAMBERS TO BEGIN CLOSED SESSION 3. CLOSED SESSION -- CALL TO ORDER a. Conference with Legal Counsel — Anticipated Litigation Significant exposure to litigation pursuant to subdivision (b) of Section 54956.9: (One case.) b. Conference with Labor Negotiators Conference with Labor Negotiators (Govt. Code Sec. 54957.6) Agency designated representatives: Wade McKinney, City Manager Atascadero City Council Draft Minutes April 24,2012 Page 1 of 9 ITEM NUMBER: A- 1 DATE: 05/08/12 Employee Organizations: Atascadero Firefighters Bargaining Unit; Atascadero Police Association; Service Employees International Union, Local 620; Mid-Management/Professional Employees; Non-Represented Professional and Management Workers and Confidential Employees 4. CLOSED SESSION -- ADJOURNMENT 5. COUNCIL RETURNS TO CHAMBERS 6. CLOSED SESSION -- REPORT City Attorney Pierik announced that there was no reportable action taken. REGULAR SESSION — CALL TO ORDER: 6:00 P.M. Mayor Kelley called the meeting to order at 6:00 p.m. and Council Member Sturtevant led the Pledge of Allegiance. ROLL CALL: Present: Council Members Clay, Fonzi, Sturtevant, Mayor Pro Tem O'Malley and Mayor Kelley Absent: None Others Present: City Clerk / Assistant to City Manager Marcia McClure Torgerson Staff Present: City Manager Wade McKinney, Assistant City Manager Jim Lewis, Administrative Services Director Rachelle Rickard, Community Development Director Warren Frace, Public Works Director Russ Thompson, Community Services Director Brady Cherry, Police Chief Jerel Haley, Fire Chief Kurt Stone, and City Attorney Brian Pierik. APPROVAL OF AGENDA: City Manager McKinney requested that Item #C-1 be pulled from the agenda. MOTION: By Council Member Fonzi and seconded by Council Member Sturtevant to approve the agenda, with one amendment to remove Item #C-1. Motion passed 5:0 by a roll-call vote. Atascadero City Council Draft Minutes April 24,2012 Page 2 of 9 ITEM NUMBER: A- 1 DATE: 05/08/12 PRESENTATIONS: 1. Presentation to American Heritage Girls for Volunteer Efforts in the City Public Works Director Thompson introduced the American Heritage Girls and Mayor Kelley thanked them for their service and gave each of them a Certificate of Appreciation. 2. Employee Service Awards City Manager McKinney recognized the following employees for their years of service: 25 years Paula Anton, Recreation Supervisor 15 years Rachelle Rickard, Administrative Services Director 10 years Matt Vierra, Fire Engineer 5 years Kellye Netz, Police Officer 3. Bike Month Update by Angela Nelson, San Luis Obispo Regional Rideshare Program Coordinator Angela Nelson was unable to attend this meeting, and Mayor Pro Tem O'Malley summarized the events scheduled for Bike Month in Atascadero. A. CONSENT CALENDAR: 1. City Council Draft Action Minutes — April 10, 2012 ■ Recommendation: Council approve the City Council Draft Action Minutes of April 10, 2012. [City Clerk] 2. March 2012 Accounts Payable and Payroll ■ Fiscal Impact: $2,684,735.39. ■ Recommendation: Council approve certified City accounts payable, payroll and payroll vendor checks for March 2012. [Administrative Services] Atascadero City Council Draft Minutes April 24,2012 Page 3 of 9 ITEM NUMBER: A- 1 DATE: 05/08/12 3. City Council 2012 Meeting Schedule - Revised ■ Fiscal Impact: None. ■ Recommendation: Council approve the revised City Council meeting schedule for 2012. [City Manager] 4. Weed/Refuse Abatement Program ■ Fiscal Impact: The City recovers costs for administering this program through the 150% administrative fee, which is placed on the San Luis Obispo County Special Tax Assessment for the fiscal year 2012-2013 Tax Roll. ■ Recommendation: Council adopt the Draft Resolution, declaring vegetative growth and/or refuse a public nuisance, commencing proceedings for the abatement of said nuisances, and placing all abatement fees on the San Luis Obispo County Special Tax Assessment for the fiscal year 2012-2013 Tax Roll. [Fire] 5. Final Map 2007-0161 (Parcel Map AT 11-0114) 13000 Atascadero Ave. (TPM 2005-0080) Kevin McGurty ■ Fiscal Impact: None. ■ Recommendations: Council: 1. Adopt and approve Final Parcel Map 2007-0161 (Parcel Map AT 11- 0114) and reject the offer of dedication for streets, shown on the map, without prejudice for future acceptance on behalf of the public; and, 2. Authorize and direct the City Clerk to endorse the Council's approval and offer of dedication rejection on the Map. [Public Works] MOTION: By Council Member Clay and seconded by Council Member Sturtevant to approve the Consent Calendar. Motion passed 5:0 by a roll-call vote. (#4: Resolution No. 2012- 006) UPDATES FROM THE CITY MANAGER: City Manager Wade McKinney gave an update on projects and issues within the City. COMMUNITY FORUM: The following citizens spoke during Community Forum: Pastor Sean Barner, Ron Rothman, David Broadwater (Exhibit A), Tom Comar, Mike Anderson, Lee Perkins, Jeff Edwards, Dan Ravoir, and Jim Wilkins. Mayor Kelley closed the COMMUNITY FORUM period. Atascadero City Council Draft Minutes April 24,2012 Page 4 of 9 ITEM NUMBER: A- 1 DATE: 05/08/12 B. PUBLIC HEARINGS: None. C. MANAGEMENT REPORTS: 1. Oak Ridge Estates / 3F Meadows PD-11 Project Update — State Route 41 (Morro Road)/Los Altos Road Intersection ■ Fiscal Impact: None. ■ Recommendation: Council consider additional information and find that the proposed improvements at the intersection of State Route 41 (Morro Road) and Los Altos Road satisfy the requirements of the Atascadero Municipal Code, Planned Development 11. [Public Works] This item was pulled from the agenda. 2. Strategic Planning 2012 — Council Goals and Action Plan ■ Fiscal Impact: The two-year budget is based on the goals developed through the strategic planning process. While there is no direct impact as a result of the approval of this work plan, future budgets will be based on these goals, and specific projects may require the expenditure of funds or additional resources. Recommendations: Council: 1. Adopt the goals selected at the Strategic Planning Workshop of February 24, 2012; and, 2. Approve the related action plans implementing Council Goals. [City Manager] City Manager Wade McKinney gave the staff report and answered questions from the Council. PUBLIC COMMENT: None MOTION: By Council Member Sturtevant and seconded by Council Member Fonzi to: 1. Adopt the goals selected at the Strategic Planning Workshop of February 24, 2012; and, 2. Approve the related action plans implementing Council Goals. Motion passed 5:0 by a roll-call vote. Atascadero City Council Draft Minutes April 24,2012 Page 5 of 9 ITEM NUMBER: A- 1 DATE: 05/08/12 3. Downtown Parking Opportunities and Parking Information Campaign ■ Fiscal Impact: Certain projects may incur cost and a funding source would need to be identified on a project by project basis. Recommendations: Council provide feedback on proposed downtown parking opportunities and the "Park Here!" campaign. [City Manager] Assistant City Manager Jim Lewis gave the staff report and answered questions from the Council. The Council provided the following feedback: • Handouts with a map for the public, located in businesses • Online parking maps • Employee handouts with a map • Parking signage • Reconsider angled parking on EI Camino Real; and create alternate bike routes away from EI Camino Real • Employers should set rules for where their employees park, not the City PUBLIC COMMENT: The following citizens spoke on this item: Larry Wysong. Mayor Kelley closed the Public Comment period. 4. Housing Element Annual Progress Report 2011 (PLN 2006-1133) ■ Fiscal Impact: None. ■ Recommendation: Council direct staff to submit the attached 2011 Housing Element Annual Progress Report to the State of California. [Community Development] Community Development Director Warren Frace gave the staff report and answered questions from the Council. PUBLIC COMMENT: None MOTION: By Council Member Sturtevant and seconded by Council Member Fonzi to direct staff to submit the attached 2011 Housing Element Annual Progress Report to the State of California. Motion passed 5:0 by a roll-call vote. Atascadero City Council Draft Minutes April 24,2012 Page 6 of 9 ITEM NUMBER: A- 1 DATE: 05/08/12 5. General Plan Amendment 2012 Timing Exception ■ Fiscal Impact: None. ■ Recommendation: Council grant an exception to the date for the non- reserved General Plan Amendment 2011 Cycle A, to allow a General Plan Amendment to be considered by Planning Commission and City Council between May 2012 and December 2012 for the Del Rio Road Commercial Area Specific Plan (a.k.a. Walmart /Annex). [Community Development]. Community Development Director Warren Frace gave the staff report and answered questions from the Council. PUBLIC COMMENT: None MOTION: By Council Member Sturtevant and seconded by Council Member Fonzi to grant an exception to the date for the non- reserved General Plan Amendment 2011 Cycle A, to allow a General Plan Amendment to be considered by Planning Commission and City Council between May 2012 and December 2012 for the Del Rio Road Commercial Area Specific Plan (a.k.a. Walmart /Annex). Motion passed 5:0 by a roll-call vote. 6. Lake Park Frontage Signage ■ Fiscal Impact: None. ■ Recommendation: Council approve the proposed text and graphics for the main monument sign for the Atascadero Lake Park Frontage Project. [Public Works] Public Works Director Russ Thompson gave the staff report and answered questions from the Council. PUBLIC COMMENT: The following citizens spoke on this item: Donald Cross. Mayor Kelley closed the Public Comment period. MOTION: By Mayor Pro Tem O'Malley and seconded by Council Member Clay to approve the following text for the main monument sign for the Atascadero Lake Park Frontage Project: Lake Park Charles Paddock Zoo Motion passed 5:0 by a roll-call vote. Atascadero City Council Draft Minutes April 24,2012 Page 7 of 9 ITEM NUMBER: A- 1 DATE: 05/08/12 COUNCIL ANNOUNCEMENTS AND REPORTS: The City Council Members made brief announcements. D. COMMITTEE REPORTS: Mayor Kelley Atascadero State Hospital Advisory Committee • Meeting is next week. City of Atascadero Design Review Committee • Next meeting is on Thursday. City of Atascadero Finance Committee • Next meeting is tomorrow afternoon. County Mayors Round Table • Meeting was last week. They discussed the RDA/Successor Agencies and Oversight Board process. Also, they talked about the new leash law that has been implemented by the County Board of Supervisors. Economic Vitality Corporation, Board of Directors (EVC) • Meeting is tomorrow afternoon. Oversight Board for the Successor Agency to the Community Redevelopment Agency of Atascadero • First meeting was last week. Mayor Kelley was selected to be Chairperson, and Assistant City Manager Jim Lewis was selected to be Vice Chairperson. Mayor Pro Tem O'Malley Integrated Waste Management Authority (IWMA) • Mayor Pro Tem O'Malley received a few calls from small business owners outside the City limits stating that they had received a visit from the IWMA staff who notified them that they would be under the jurisdiction of the new IWMA ruling about banning plastic bags. Mr. O'Malley thought that businesses under 10,000 square feet were exempt; will need to check. Council Member Fonzi SLO Local Agency Formation Commission (LAFCo) — alternate • Reconsidered the Los Robles del Mar annexation to the City of Pismo Beach. Their groundbreaking decision was to vote to deny the annexation. Atascadero City Council Draft Minutes April 24,2012 Page 8 of 9 ITEM NUMBER: A- 1 DATE: 05/08/12 Council Member Sturtevant League of California Cities — Council Liaison • This Friday is the next League Channel Counties Quarterly meeting. City Manager McKinney and Council Member Sturtevant will be attending. E. INDIVIDUAL DETERMINATION AND / OR ACTION: City Council Council Member Clay announced that he has appointed Robert Pittenger, Jr. to the Parks and Recreation Commission. F. ADJOURNMENT Mayor Kelley adjourned the meeting at 8:20 p.m. MINUTES PREPARED BY: Marcia McClure Torgerson, C.M.C. City Clerk / Assistant to the City Manager The following exhibit is available for review in the City Clerk's office: Exhibit A— Presentation slide from David Broadwater Atascadero City Council Draft Minutes April 24,2012 Page 9 of 9 ITEM NUMBER: A-2 DATE: 05/08/12 Atascadero, City, council March 2012 Staff Report - City Treasurer March 2012 Investment Report RECOMMENDATION: Council receive and file the City Treasurer's report for quarter ending March 2012. REPORT IN BRIEF: Cash and Investments Checking $ 641,946 Zoo Credit Card Deposit Account 2,218 Money Market Accounts 365 Certificates of Deposit 12,743,000 Government Securities 6,463,077 LAIF 29,451,549 Cash with Fiscal Agents 1,799,866 Cash in Banks at March 31, 2012 $ 51,102,021 Deposits in Transit - Outstanding Checks 520,124 Cash and Investments at March 31, 2012 $ 50,581,897 Investment Activity Securities Purchased: Purchase Date Description Type Cost Maturity Date 01/30/12 Federal Nat'l Mtge Assn gov't security $ 506,017 01/30/17 02/10/12 Cardinal Bank CD 245,000 02/10/17 02/16/12 Thomasville Nat'l Bank CD 245,000 02/16/17 Securities Matured: Maturity Date Description Type Original Cost Amount Matured 01/09/12 Boston Private B & T CD $ 97,000 $ 97,000 01/17/12 Wachovia Mortgage CD 100,000 100,000 01/30/12 Bankers Trust Company CD 97,000 97,000 02/24/12 Columbus B & T Co. CD 250,000 250,000 02/29/12 Mission Community Bank CD 42,496 56,924 Page 1 of 12 Investment Activity (continued) Securities Sold/Called Prior to Maturity: Transaction / Original Cost/ Gain / (Loss) Tran Date Description / Type Maturity Sale Price on Call Call Federal Nat'l Mtge Assn $ 499,750 $ 500,000 250 01/18/12 government security 07/18/16 This security was issued as callable on a quarterly basis as of 1/18/12. There was no loss of interest. Other Reportable Activities: None Page 2 of 12 CITY OFATASCADERO TREASURER'S REPORT CASH&INVESTMENTS ACTIVITY SUMMARY for the quarter ending March 31,2012 CHECKING FISCAL ACCOUNTS INVESTMENTS AGENT 770T.4LS Balance per Banks at January 1,2012 $ 421,050 $ 46,549,732 $ 1,497,198 48,467,980 Receipts 10,923,820 25,916 621,665 11,571,401 Disbursements (8,618,363) (318,997) (8,937,360) Transfers In 7,383,674 9,466,017 - 16,849,691 Transfers Out (9,466,017) (7,383,674) - (16,849,691) Balance per Banks at March 31,2012 $ 644,164 * $ 48,657,991 $ 1,799,866 51,102,021 Deposits in Transit - Outstanding Checks (520,124) Adjusted Treasurer's Balance S 50,581,897 * This balance includes the balance of the Zoo Credit Card Deposit Account, which is the account established to receive the point of sale credit card transactions from the Zoo Gift Shop, and to disburse fees charged by the credit card processing service. 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G y 409 6s v •a O h o o M �' o o Nqm 4 o> W ti e e e e e un W) o oo o v o o e v 3 a o ryrq 1c a y a� Fr 'L So W v So •y o OO � � v o W C7 d f l v N A tN w 9 j E E u c°i C > > > Q 7coi u col N •V N m p N O O 2 a O O O C S C •n 6J ��� N N d X N C W t C tG P^ y R ec � A o c •- x S 3 c w G m ckA > > c —m , Y t W Orn Q rTe � p bo~D Z a. x M w � •� .s o P. C •..jam OG r� u wu v w aW lo lo %Dw a ¢p �1 a, o0 C Q Q L" — y A t'- e A o `� 0 0 o e •5b C u C w ¢ 3 vitiE > City of Atascadero Investments by Type March 2012 Government Securities �34i° Cash with Fiscal Agent Certificates of Deposit 4% 25% { ?y t .0 Other LA1F 58% Investment March 2012 LAIF 2.9,451,549 Certificates of Deposit 12,743,000 Government Securities 6,463,077 Cash with Fiscal Agent 1,799,866 Other 365 S 50,457,857 Page 9 of 12 City Of Atascader® Investments by Maturity March 2012 One Month to One Year One to Five Years 10% - — 29% Within One Month 1% On Demand 60% Investment March 2012 On Demand $ 29,451,914 Within One Month 250,000 One Month to One Year 4,996,000 One to Five Years 13,960,077 $ 48,657,991 Page 10 of 12 City of Atascadero Investments by Custodial Agent March 2012 Onion Bank 38% Bank of New York � 4% aF+ Other 0% State of California 58% Custodial Agent March 2012 State of California $ 29,451,549 Other 365 Union Bank 19,206,077 Bank of New York 1,799,866 $ 50,457,857 Page 1!of 12 City of Ataseadero Investment Yield vs. 2-Year Treasury Yield For the Quarter Ended March 31, 2012 1.60% 1.40% - t I 1.20°l0 - . t 1.00% i . . 0.80% =--- ---—— – -- -- -- _-- -- q. 0.60% 0.40% - r 0.20% • 0.00% o�0 OHO OHO OHO oA0 O^� O�� Off^ o�� ­:m—City Yield --*,-2-Yr Treasury Weighted Port#olio Yield 2-Yr Treasury Weighted Portfolio City Yield Yield March 2010 1.38% 1.22% June 2010 1.30% 0.84% September 2010 1.42% 0.77% December 2010 1.31% 0.77% March 2010 1.10% 0.82% June 2011 1.11% 0.58% September 2011 1.08% 0.44% December 2011 1.08% 0.45% March 2012 1.02% 0.48% Page 12 of 12 ITEM NUMBER: A- 3 DATE: 05/08/12 r rr r hr r r ''i978 r7 Atascadero City Council Staff Report — Administrative Services Department Apple Valley Assessment Districts RECOMMENDATIONS: Council: 1. Adopt Draft Resolution A initiating proceedings for the levy and collection of annual assessments for Atascadero Street and Storm Drain Maintenance District No. 01 (Apple Valley) for fiscal year 2012/2013; and, 2. Adopt Draft Resolution B accepting and preliminarily approving the Engineer's Annual Levy Report regarding the Atascadero Street and Storm Drain Maintenance District No. 01 (Apple Valley); and, 3. Adopt Draft Resolution C declaring the City's intention to levy and collect annual assessments within Atascadero Street and Storm Drain Maintenance District No. 01 (Apple Valley) in fiscal year 2012/2013, and to appoint a time and place for the public hearing on these matters; and, 4. Adopt Draft Resolution D initiating proceedings for annual levy of assessments for the Atascadero Landscaping and Lighting Maintenance District No. 01 (Apple Valley) for fiscal year 2012/2013 pursuant to the provisions of Part 2 of Division 15 of the California Streets and Highways Code; and, 5. Adopt Draft Resolution E for preliminary approval of the Annual Engineer's Levy Report for the Atascadero Landscaping and Lighting Maintenance District No. 01 (Apple Valley) for fiscal year 2012/2013; and, 6. Adopt Draft Resolution F declaring the City's intention to levy and collect assessments for the Atascadero Landscaping and Lighting Maintenance District No. 01 (Apple Valley) for fiscal year 2012/2013. REPORT-IN-BRIEF: The City Council formed and began assessing Atascadero Street and Storm Drain Maintenance District No. 01 (Apple Valley) in 2005. This district was formed to provide funding for future routine maintenance of the streets, storm drains and sidewalks in the Apple Valley subdivision. The City Council also formed and began assessing Atascadero Landscape and Lighting Maintenance District No. 01 (Apple Valley) in 2005. This district was formed to provide ITEM NUMBER: A- 3 DATE: 05/08/12 for funding and maintenance of street trees, open space, park area, medians, walkways, paths and other landscape and lighting improvements within the Apple Valley subdivision. NBS, an independent financial consultant, was hired to prepare the engineer's report for the two districts. The engineer's report and the levies must be approved by Council annually. This is done in a two-step process. Tonight, there are three resolutions for each district (a total of 6 resolutions in all) that must be adopted in order to continue the assessments within the districts. The resolutions adopted tonight will also establish the date and time for the public hearing. The public hearing is tentatively scheduled for June 12, 2012 at 6:00 p.m., at which time the final resolutions will be presented to the Council for passage. The proposed assessments for fiscal year 2012/2013 are less than the Maximum Assessment Rate. In accordance with the formula voters of the district adopted in 2005, the City may increase the Maximum Assessment Rate for inflation by the greater of the Consumer Price Index (CPI) or 3.0%. The Maximum Assessment Rate was increased 3.0% this year for both districts. The Landscape and Lighting District has a surplus fund balance, so the City staff held a neighborhood meeting to receive input from property owners as to the preference on how to treat the surplus. The property owners in attendance requested an assessment of about 52% of the allowable maximum annual assessments for the Landscaping and Lighting District, and about 95% for the Street and Storm Drain District. Amount Per EBU Amount Per EBU District Maximum Assessment Proposed Assessment Fiscal Year 2012-13 Fiscal Year 2012-13 Atascadero Street and Storm Drain $613.25 $582.00 Maintenance District No. 01 Apple Valley Atascadero Landscaping and Lighting Maintenance District No. 01 Apple Valley $1,340.15 $700.00 FISCAL IMPACT: Annual assessments for 2012/2013 will total $40,740 for road/drainage system maintenance and $49,000 for landscape and lighting maintenance. These amounts will be assessed to the owners of parcels in Apple Valley. ITEM NUMBER: A- 3 DATE: 05/08/12 ATTACHMENTS: 1. Draft Resolution A - initiating proceedings for the levy and collection of annual assessments for Atascadero Street and Storm Drain Maintenance District No. 01 (Apple Valley) for fiscal year 2012/2013 2. Draft Resolution B - accepting and preliminarily approving the Engineer's Annual Levy Report regarding the Atascadero Street and Storm Drain Maintenance District No. 01 (Apple Valley) 3. Draft Resolution C - declaring the City's intention to levy and collect annual assessments within Atascadero Street and Storm Drain Maintenance District No. 01 (Apple Valley) in fiscal year 2012/2013, and to appoint a time and place for the public hearing on these matters 4. Engineer's Annual Levy Report- for the levy and collection of fiscal year 2012/2013 assessments for Atascadero Street and Storm Drain Maintenance District No. 01 (Apple Valley) 5. Draft Resolution D - initiating proceedings for annual levy of assessments for the Atascadero Landscaping and Lighting Maintenance District No. 01 (Apple Valley) for fiscal year 2012/2013 pursuant to the provisions of Part 2 of Division 15 of the California Streets and Highways Code 6. Draft Resolution E - preliminary approval of the Annual Engineer's Levy Report for Atascadero Landscaping and Lighting Maintenance District No. 01 (Apple Valley) for fiscal year 2012/2013 7. Draft Resolution F - declaring the City's intention to levy and collect assessments for the Atascadero Landscaping and Lighting Maintenance District No. 01 (Apple Valley) for fiscal year 2012/2013 8. Engineer's Annual Levy Report- for the levy and collection of fiscal year 2012/2013 assessments for Atascadero Landscaping and Lighting District No. 01 (Apple Valley) ITEM NUMBER: A- 3 DATE: 05/08/12 Attachment 1 DRAFT RESOLUTION A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ATASCADERO, CALIFORNIA, INITIATING PROCEEDINGS FOR THE LEVY AND COLLECTION OF ANNUAL ASSESSMENTS FOR ATASCADERO STREET AND STORM DRAIN MAINTENANCE DISTRICT NO. 01 (APPLE VALLEY) FOR FISCAL YEAR 2012/2013. The City Council of the City of Atascadero (hereafter referred to as "City Council") hereby finds, determines,resolves and orders as follows: 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") formed an assessment district to be designated as Atascadero Street and Storm Drain Maintenance District No. 01 (Apple Valley) (hereafter referred to as the "District"), for the purpose of funding the ongoing operation, maintenance and servicing of public streets, sidewalks, storm drain and flood control facilities installed in conjunction with the development of properties known as Apple Valley Tract 2495; 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 NBS as the Engineer of Work, for the purpose of assisting with the administration 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 W11C and'URD; NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Atascadero as follows: SECTION 1. The City Council hereby orders the Engineer to prepare and file an Engineer's Annual Levy Report concerning the levy of assessments for properties within the District as specified by Article 4 Section 54716 of the 1982 Act. 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, outlets, catch basins, drainage basins, manholes, and associated appurtenant facilities located within the public street ITEM NUMBER: A- 3 DATE: 05/08/12 Attachment 1 right-of-ways and other public easements within the District, and dedicated to the City of Atascadero for such maintenance. SECTION 3. The territory within Atascadero Street and Storm Drain Maintenance District No. Ol (Apple Valley) consists of lots, parcels and subdivisions of land located in the development known as Apple Valley Tract 2495. 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: Bob Kelley,Mayor ATTEST: Marcia McClure Torgerson, C.M.C., City Clerk APPROVED AS TO FORM: Brian A. Pierik, City Attorney ITEM NUMBER: A- 3 DATE: 05/08/12 Attachment 2 DRAFT RESOLUTION B RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ATASCADERO, CALIFORNIA, ACCEPTING AND PRELIMINARILY APPROVING THE ENGINEER'S ANNUAL LEVY REPORT REGARDING THE ATASCADERO STREET AND STORM DRAIN MAINTENANCE DISTRICT NO. 01 (APPLE VALLEY). The City Council of the City of Atascadero (hereafter referred to as "City Council") hereby finds, determines,resolves and orders as follows: WHEREAS, the City Council has, by previous Resolution, ordered the preparation of an Engineer's Annual Levy Report (hereafter referred to as the "Report") regarding the assessment district to be designated as the Atascadero Street and Storm Drain Maintenance District No. 01 (Apple Valley) (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 and 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 as follows: SECTION 1. The preceding recitals are 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. ITEM NUMBER: A- 3 DATE: 05/08/12 Attachment 2 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. e. The District Roll containing the Levy for each Assessor Parcel Number within the District for fiscal year 2012/2013. 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 described in the Report is hereby approved on a preliminary basis. 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. ITEM NUMBER: A- 3 DATE: 05/08/12 Attachment 2 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: Bob Kelley,Mayor ATTEST: Marcia McClure Torgerson, C.M.C., City Clerk APPROVED AS TO FORM: Brian A. Pierik, City Attorney ITEM NUMBER: A- 3 DATE: 05/08/12 Attachment 3 DRAFT RESOLUTION C RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ATASCADERO, CALIFORNIA, DECLARING ITS INTENTION TO LEVY AND COLLECT ANNUAL ASSESSMENTS WITHIN ATASCADERO STREET AND STORM DRAIN MAINTENANCE DISTRICT NO. 01 (APPLE VALLEY) IN FISCAL YEAR 2012/2013, AND TO APPOINT A TIME AND PLACE FOR THE PUBLIC HEARING ON THESE MATTERS. The City Council of the City of Atascadero (hereafter referred to as "City Council")hereby finds, determines,resolves and orders as follows: 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 approve 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 for the assessment district designated as Atascadero Street and Storm Drain Maintenance District No. 01 (Apple Valley) (hereafter referred to as the "District"); 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 for Fiscal Year 2012/2013 (July 1, 2012 and ending June 30, 2013) in accordance with Chapter 1, Article 4 of the 1982 Act and in accordance with the requirements of the California Constitution, Articles XIIIC and XHID, 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 as follows: 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. 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 ITEM NUMBER: A- 3 DATE: 05/08/12 Attachment 3 and associated with the District. Said improvements may include, but are not limited to pavement, curbs, sidewalks, hardscape, bridges, fencing, signage, drains, pipes, inlets, outlets, catch basins, drainage basins, manholes, 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 full and complete description of the improvements within the District. SECTION 3. The proposed territory within Atascadero Street and Storm Drain Maintenance District No. 01 (Apple Valley) consists of lots, parcels and subdivisions of land located in the development known as Apple Valley Tract 2495. SECTION 4. 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. SECTION 5. Notice is hereby given that a Public Hearing on these matters will be held by the City Council on Tuesday, June 12, 2012 at 6:00 p.m. or as soon thereafter as feasible in the regular meeting chambers of the City Council located at 6907 El Camino Real, Atascadero, California, in accordance with Government Code, Section 53753 and California Constitution, Article AWD, 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. At the Public Hearing, interested persons shall be permitted to present written and/or oral testimony. ITEM NUMBER: A- 3 DATE: 05/08/12 Attachment 3 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: Bob Kelley,Mayor ATTEST: Marcia McClure Torgerson, C.M.C., City Clerk APPROVED AS TO FORM: Brian A. Pierik, City Attorney helping communities fund tomorrow City of Atascadero Annual Engineer's Report Street and Storm Drain Maintenance District No. 01 (Apple Valley) Fiscal Year 2012/13 Main Office 32605 Temecula Parkway, Suite 100 Temecula, CA 92592 Toll free: 800.676.7516 Fax: 951.296.1998 Regional Office 870 Market Street, Suite 1223 San Francisco, CA 94102 Toll free: 800.434.8349 Fax: 415.391.8439 CITY OF ATASCADERO Street and Storm Drain Maintenance District No. 01 (Apple Valley) 6907 EI Camino Real Atascadero, CA 93422 Phone — (805) 461-5000 Fax — (805) 461-7612 CITY COUNCIL Bob Kelley, Mayor Tom O'Malley, Mayor Pro Tem Brian Sturtevant, Council Member Jerry Clay, Sr., Council Member Roberta Fonzi, Council Member AGENCY STAFF Wade G. McKinney, City Manager James R. Lewis, Assistant City Manager Rachelle Rickard, Administrative Services Director Jeri Rangel, Assistant Administrative Services Director NBS Danielle Wood, Client Services Director Adina Vazquez, Senior Consultant TABLE OF CONTENTS 1. ENGINEER'S LETTER 1-1 2. EXECUTIVE SUMMARY 2-1 3. PLANS AND SPECIFICATIONS 3-1 A. BENEFITING PROPERTIES WITHIN THE DISTRICT.................................3-1 B. FUNDING AUTHORIZED BY THE 1982 ACT...............................................3-1 C. DESCRIPTION OF IMPROVEMENTS AND SERVICES ..............................3-1 4. ESTIMATE OF COSTS 4-1 5. METHOD OF ASSESSMENT 5-1 A. GENERAL ....................................................................................................5-1 B. BENEFIT ANALYSIS....................................................................................5-1 C. ASSESSMENT METHODOLOGY................................................................5-2 D. ASSESSMENT RANGE FORMULA.............................................................5-5 6. ASSESSMENT DIAGRAM 6-1 7. ASSESSMENT ROLL 7-1 Street&Storm Drain District No. 01 (Apple Valley) Engineer's Report—City of Atascadero Table of Contents Prepared by NBS—Fiscal Year 2012/13 1. ENGINEER'S LETTER WHEREAS, on March 24, 2005 by Resolution No. 2005-042, the City Council of the City of Atascadero (the "City"), State of California, in accordance with and 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"), established the City of Atascadero Street and Storm Drain Maintenance District No. 01 (Apple Valley) (the "District"); and WHEREAS, on May 8, 2012, the City Council, under the 1982 Act, adopted its Resolution Initiating Proceedings for the Annual Levy of Assessments and Ordering the Preparation of an Engineer's Report for the District; and WHEREAS, the Resolution Initiating Proceedings directed NBS to prepare and file a report describing the general nature, location, and extent of the improvements to be maintained; an estimate of the costs of the maintenance, operations, and servicing of the improvements for the District for the referenced fiscal year; a diagram for the District, showing the area and properties to be assessed; and an assessment of the estimated costs of the administration, maintenance, operations, and servicing the improvements, assessing the net amount upon all assessable lots and/or parcels within the District in proportion to the special benefit received. NOW THEREFORE, the assessments as detailed in this Engineer's Report and as summarized in the table below are made to cover the portion of the estimated costs of maintenance, operation and servicing of the improvements to be paid by the assessable real property within the District in proportion to the special benefit received. The following table summarizes the proposed assessment for Fiscal Year 2012/13: FY 2012/13 Summary of Assessment Description Amount Estimated Annual Costs $56,760 Capital Reserve Collection/ Uses 25,910 Levy Adjustments 9,890 Balance to Levy $40,740 Fiscal Year 2012/13 Maximum Rate $613.25 Fiscal Year 2012/13 Proposed Applied Rate $582.00 I, the undersigned, respectfully submit the enclosed Engineer's Report and, to the best of my knowledge, information, and belief, the Engineer's Report, Assessments, and the Assessment Diagram herein have been prepared, computed, and levied in accordance with the assessment methodology adopted, approved, and ordered by the City Council of the City of Atascadero and the 1982 Act. NBS Street&Storm Drain District No. 01 (Apple Valley) Engineer's Report—City of Atascadero 1-1 Prepared by NBS—Fiscal Year 2012/13 2. EXECUTIVE SUMMARY 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"), proposed to form and levy special benefit assessments for the district designated as: Street and Storm Drain Maintenance District No. 01 (Apple Valley) (hereafter referred to as the "District"), which includes the lots and parcels of land within the residential subdivision known as Apple Valley, Tract 2495 within the City limits of the City. This Engineer's Report (hereafter referred to as the "Report") has been prepared in connection with the levy and collection of annual assessments related thereto for fiscal year 2012/2013. The City Council formed the District, and provided for the levy and collection of annual assessments on the County tax rolls to provide ongoing funding for the costs and expenses required to service and maintain the street and storm drain improvements and facilities associated with and resulting from the development of properties within the District. The improvements to be provided by the District and the assessments described herein are made pursuant to the 1982 Act and the substantive and procedural provisions of the California Constitution. This Report describes the District, the improvements, and the proposed assessments to be levied against properties in connection with the special benefits the properties will receive from the maintenance and servicing of the District improvements and facilities. The annual assessments described herein will provide a funding source 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 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 improvements, the method of apportionment, and assessments described herein are based on current development plans and specifications for Tract 2495; and by reference these plans and specifications are made part of this Report. 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's formation, the City conducted 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 conducted 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 were opened and tabulated to determine whether majority protest existed (ballots were weighted based on assessment amounts), and by resolution the City Council confirmed the results of the ballot tabulation. The tabulation of the ballots indicated that majority protest did not exist for the proposed assessments and the assessment range formula presented and described herein; therefore, the City Council approved the Report (as submitted or amended), ordered the formation of the District, and approved the levy and collection of assessments. The assessments for fiscal year 2005/2006 were Street&Storm Drain District No. 01 (Apple Valley) Engineer's Report—City of Atascadero 2-1 Prepared by NBS—Fiscal Year 2012/13 submitted to the San Luis Obispo County Auditor/Controller for inclusion on the property tax roll for each parcel. Each subsequent fiscal year, a Report shall be prepared and presented to the City Council describing any changes to the improvements, proposed services, the annual budget or assessments for that fiscal year and the City Council may 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. Street&Storm Drain District No. 01 (Apple Valley) Engineer's Report—City of Atascadero 2-2 Prepared by NBS—Fiscal Year 2012/13 3. PLA NS A ND SPECIFI CA TIONS A. BENEFITING PROPERTIES WITHIN THE DISTRICT The territory within the District consists of the lots, parcels and subdivisions of land within the proposed residential subdivision known as the Apple Valley, Tract 2495, which encompasses an area of land totaling approximately twenty-eight acres (28.35 acres). This residential subdivision includes seventy (70) single-family residential homes. The subdivision is situated in the northern portion of the City of Atascadero just southwest of Highway 101 and is generally located: • South of Del Rio Road; • North of Conejo Road; • West of Ramona Road; and, • East of Graves Creek 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. C. DESCRIPTION OF IMPROVEMENTS AND SERVICES The purpose of this District is to fund the activities necessary to maintain and service the local streets and the drainage and flood control systems constructed and installed in connection with development of properties within the residential subdivision known as Apple Valley, Tract 2495 pursuant to approved development plans and agreements. The improvements may consist of all or a portion of the public streets, drainage and flood control facilities associated with Tract 2495 and the maintenance of these improvements may include but are not limited to the 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&Storm Drain District No. 01 (Apple Valley) Engineer's Report—City of Atascadero 3-1 Prepared by NBS—Fiscal Year 2012/13 • Street maintenance that may include but is not limited to the repair and servicing of street surfaces, curbs, gutters, bridges, driveway approaches, sidewalks, barricades, delineation, signage or other facilities within the public street right-of-ways installed in connection with the development of properties in Tract 2495 and that have been dedicated to the City; • Storm drain and flood control maintenance that may include but is not limited to inspection, repair and servicing of drainage basins, inlets, catch basins, manholes, outlets, drywells, pumps, filters and storm drain pipes installed in connection with the development of properties of Tract 2495 as well as any off-site improvements and facilities directly associated with the aforementioned infrastructure that is deemed necessary to service or protect the properties including waste water treatment; • The appurtenant, equipment, materials and service contracts related to the aforementioned improvements and facilities; • Specifically excluded are those improvements or facilities: located on private property or common areas; that may be provided or maintained by an agency other than the City; that may be provided by another assessment or tax levied by the City; or that may be provided and maintained by a Homeowner's Association or similar entity. Detailed maps and descriptions of the location and extent of the specific improvements to be maintained by the District are on file in the Office of Public Works and by reference are made part of this Report. Those portions of the District improvements that may be identified as general benefit or will be funded in whole or in part by other revenue sources as part of the approved development agreements, will not be included as part of the District assessments. The net annual cost to provide and maintain the improvements determined to be of special benefit shall be allocated to each property in proportion to the special benefits received. Street Maintenance The street maintenance program may include, but is not limited to: the repair of potholes, cracks or other failures in the asphalt surface; repair or replacement of curbs, gutters, driveway approaches and sidewalks as required as part of maintaining the streets; repair or installation of street signs, barricades, fencing or other delineation; mechanized sweeping and cleaning of the streets and gutters; slurry sealing, overlays and re- striping of the street surfaces. The specific activities and timing of various street and road maintenance services shall be determined by the City's Public Works Department as necessary to extend the life of the streets or to improve traffic circulation and safety as available funding permits. Specifically the street improvements for this District are identified as: • Approximately 106,460 square feet of asphalt street surface located on the perimeter of the development (south half of Del Rio Road); and the various interior streets identified as Via Colonia Court, San Ramon Road, Via Huerto Court, Avenida Manzana, and San Ramon Road. • Approximately 5,320 linear feet of curb and gutter along Del Rio Road, Via Colonia Court, San Ramon Road, Via Huerto Court, Avenida Manzana, San Ramon Road and Conejo Road; • Approximately 3,545 square feet of decorative street pavers and 1,254 linear feet of curb and gutter in and around the two median islands on San Ramon Road (entryways to the development at Del Rio Road and Conejo Road); • Approximately 70 driveway approaches, 25,394 square feet of sidewalks and various street signs within the District; • Specifically not included as part of the street maintenance program are the costs associated with major replacements or reconstruction. Although the District assessments will provide funding for regular maintenance and servicing of the improvements that will extend the useful life of the street Street&Storm Drain District No. 01 (Apple Valley) Engineer's Report—City of Atascadero 3-2 Prepared by NBS—Fiscal Year 2012/13 improvements, the assessments are not intended to fund major replacements or reconstruction of the street surfaces or adjacent improvements such as curbs, gutters or driveway approaches. The costs of extensive replacement or reconstruction activities such as grinding and resurfacing of the asphalt; and replacement of curbs, gutters driveway approaches and sidewalks is significantly more than the amount that can reasonably be collected annually under the provisions of the 1982 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. The Public Works Department shall authorize the operational activities and maintenance of the public street and right-of-way improvements, facilities and services that may include, but are not limited to: • Regular street sweeping services necessary to control dirt and debris on street surfaces and gutters; • Annual inspection of street surface and repair of potholes and surface cracks as needed; • Periodic slurry or overly of street surfaces and driveway approaches (typically one or the other once every five years); • Periodic re-striping of traffic lanes, bike lanes, street parking areas, crosswalks and intersections (typically in conjunction with slurry or overly activities); • Graffiti abatement of public improvements within the street right-of-ways that are maintained by the District including but not limited to sandblasting, repainting and repair of fences, walls, barricades, sidewalks and signage as needed; • Annual inspection and periodic repair or replacement of decorative street- pavers as needed; ■ Annual inspection and minor repairs of curbs, gutters, driveway approaches and sidewalks including partial segment replacements as needed to ensure pedestrian and vehicle safety or the integrity of the street; • Annual inspection and periodic repair or rehabilitation of street signs and traffic control devices; • Annual inspection and repair of barricades, street-fencing, delineation or retaining walls within the street right-of-ways as needed. A portion of the services described above are not performed on an annual basis but rather on a periodic basis, such as slurry sealing or overlaying the asphalt streets, and the funds necessary for these activities are collected in installments as part of the annual assessments. The monies collected each year for these services will be accumulated in a special fund of the District (Reserve Fund or Capital Improvement Fund). The monies accumulated for these activities shall be spent when sufficient funds have been accumulated to perform the services deemed necessary by the City (approximately every five years). This process of accumulating funds (installments) shall continue until such time the District is dissolved; or the City determines that such funding procedures require modification. Changes in the process of accumulating funds that would result in an increase to the annual assessment rate must be presented to the property owners for approval prior to imposing such an increase. Storm Drain and Flood Control Maintenance The storm drain and flood control system associated with the District may include but is not limited to: drainage basins and bio-filters; channel ways; 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. Street&Storm Drain District No. 01 (Apple Valley) Engineer's Report—City of Atascadero 3-3 Prepared by NBS—Fiscal Year 2012/13 The annual assessments for this District are intended to support a storm drain and flood control maintenance program that will adequately regulate and control storm water runoff resulting from the development of properties within the District. This maintenance program may include but is not limited to: inspection and documentation of the system; cleaning, servicing or repair of the facilities and equipment; and the partial replacement or rehabilitation of equipment and facilities. The storm drain and flood control system includes but is not limited to: • Approximately 30,050 square feet of drainage basin area; • Twenty-eight (28) inlets, outlets and manholes located throughout Tract 2495; • Approximately 2,100 linear feet of storm drain pipe ranging from 18 inches to 42 inches in diameter. The Public Works Department shall authorize and schedule the operational activities and maintenance of the storm drain and storm water pollution treatment infrastructure, facilities and services that may include, but are not limited to: • Cleaning of storm drain inlets, catch basins, manholes and pipes as needed; • Stencil maintenance and documentation of facilities as required by Federal, State or County regulations; • Cleaning and landscape maintenance of the drainage basins, bio-filter areas or channel ways 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, • The operational costs related to NPDES compliance requirements. A portion of the services described above are not performed on an annual basis but rather on a periodic basis such as minor repairs to the storm drain inlets, catch basins and outlets, and the funds necessary for these activities are collected in installments as part of the annual assessments. The monies collected each year for these services will be accumulated in a special fund of the District (Reserve Fund or Capital Improvement Fund). The monies accumulated for these activities shall be spent as needed to perform the services deemed necessary by the City. This process of accumulating funds (installments) shall continue until such time the District is dissolved; or the City determines that such funding procedures require modification. Changes in the process of accumulating funds that would result in an increase to the annual assessment rate must be presented to the property owners for approval prior to imposing such an increase. Street&Storm Drain District No. 01 (Apple Valley) Engineer's Report—City of Atascadero 3-4 Prepared by NBS—Fiscal Year 2012/13 4. ESTIMATE OF COSTS BUDGET FY 2012/2013 DIRECT COSTS Street, Roads&Storm Drain Improvements Drainage Maintenance Services $500 Street Sweeping Services 1,000 Inspection&Operational Services-Roads, Drainage 610 Total Annual Direct Costs $2,110 CAPITAL EXPENDITURES Special Project-Slurry Seal $50,000 Total Annual Capital Expenditures $50,000 ADMINISTRATION EXEPNSES City Annual Administration $570 Engineer's Report&Services 3,490 County Administration Fee 140 Public Noticing 450 Total Annual Administration Costs $4,650 TOTAL DIRECT&ADMINISTRATION COSTS $56,760 CAPITAL RESERVE COLLECTIONS/(USES) Collection for Street Surface Activities $21,800 Collection for Street Re-striping 80 Collection for Repair Activities: Curbs, Gutters,Approaches&Sidewalks 850 Collection for Debris Removal 380 Collection for Storm Drain Fencing 380 Collection for Storm Drain Infrastructure 600 Special Project-Slurry Seal 50,000 Total Annual Capital Reserve Collections/(Uses) $(25,910) LEVY ADJUSTMENTS Interest Income- Improvement Fund $(2,189) Interest Income-Operating Reserve Fund 1,381 Operating Reserve Fund Collection(Use) 13,460 Total Levy Adjustments $9,890 BALANCE TO LEVY $40,740 DISTRICT STATISTICS Total Parcels 74 Parcels Levied 70 Total EBU 70 Levy per EBU $582.00 Maximum Levy per EBU $613.25 FUND BALANCE INFORMATION Beginning Operating Reserve Balance $78,604 Operational Reserve Interest 1,381 Operational Reserve Collection/(Use) 9,890 Estimated Ending Operating Reserve Balance $89,875 Beginning Improvement Fund Balance $164,609 Improvement Fund Interest 2,189 Improvement Fund Collection/(Use) (25,910) Estimated Ending Improvement Fund Balance $140,888 Street&Storm Drain District No. 01 (Apple Valley) Engineer's Report—City of Atascadero 4-1 Prepared by NBS—Fiscal Year 2012/13 5. METHOD OF ASSESSMENT A. GENERAL The 1982 Act permits the establishment of assessment districts by agencies for the purpose of providing for the maintenance, operation and servicing of drainage and flood control improvements as well as streets, roads and appurtenant facilities. The 1982 Act further requires that the cost of these improvements be levied according to benefit rather than assessed value: "The amount of the assessment imposed on any parcel of property shall be related to the benefit to the parcel which will be derived from the provision of the service". Furthermore: "The annual aggregate amount of the assessment shall not exceed the estimated annual cost of providing the service, except that the legislative body may, by resolution, determine that the estimated cost of work authorized ... is greater than can be conveniently raised from a single annual assessment and order that the estimated cost shall be raised by an assessment levied and collected in installments.... The revenue derived from the assessment shall not be used to pay the cost of any service other than the service for which the assessment was levied." The method of apportionment described in this Report for allocation of special benefit assessments utilizes commonly accepted engineering practices in compliance with the provisions of the 1982 Act and the California Constitution. The formulas used for calculating assessments reflects the composition of parcels within the District and the improvements and services provided, to fairly apportion the costs based on the special benefits to each parcel. B. BENEFIT ANALYSIS Each of the proposed improvements and services, and the associated costs and assessments have been carefully reviewed, identified and allocated based on special benefit pursuant to the provisions of the 1982 Act and the California Constitution. The street and storm drain improvements associated with this District were necessary and essential requirements for the orderly development of the properties within the District to their full potential, consistent with the development plans and applicable portions of the City General Plan. As such the ongoing operation, servicing and maintenance of those improvements would otherwise be the direct financial obligation of each individual property owner. Since each parcel to be assessed within the District could not have been developed in the absence of these improvements and facilities, each parcel has a direct investment in the proper maintenance of the improvements that is over and above any general benefits that may be conferred by such improvements and services. The ongoing maintenance and servicing of the District improvements is an integral part of the appearance, use and preservation of the properties within the District and such services to be funded by annual assessments confer a particular and distinct special benefit to those parcels. The proper maintenance of streets and appurtenant facilities allows individual parcels to be used to their fullest extent by ensuring the safe and efficient movement of people and goods to and from the benefiting properties Likewise, the maintenance and servicing of the storm drain system ensures proper water flow and control of excess water during periods of rain, which is essential to preservation and protection of private property. Together the maintenance and servicing of the streets and storm drain system contributes to a specific enhancement of each of the parcels within the District and the absence of adequate maintenance and servicing of the District improvements could eventually have a negative impact on properties within the District. Street&Storm Drain District No. 01 (Apple Valley) Engineer's Report—City of Atascadero 5-1 Prepared by NBS—Fiscal Year 2012/13 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 The 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. Equivalent Benefit Units: To assess benefits equitably it is necessary to relate each property's proportional special benefits to the special benefits of the other properties within the District. The method of apportionment established for most districts formed under the 1982 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 the other land uses are converted to a weighted EBU based on an assessment formula that equates the property's specific development status, type of development (land use), and size of the property, as compared to a single-family home site. Although the Equivalent Benefit Unit method of apportioning special benefit is most commonly used and applied to districts that have a wide range of land use classifications (residential and non-residential use), this District is comprised of only residential properties and the following apportionment analysis of special benefit addresses only residential land uses. Not all land use types described in the following are necessarily applicable to the development of properties within this District, but are presented for comparison purposes to support the proportional special benefit applied to those land use types within the District. EBU Application by Land Use: Single-family Residential —This land use is defined as a fully subdivided residential home site with or without a structure. This land use is assessed 1.0 EBU per lot or parcel. This is the base value that the other properties are compared and weighted against(i.e. Equivalent Benefit Unit"EBU"). Multi-family Residential —This land use is defined as a fully subdivided residential parcel that has more than one residential unit developed on the property. (This land use typically includes apartments, duplexes, triplex etc., but does not generally include condominiums, town-homes or mobilehome parks). Street&Storm Drain District No. 01 (Apple Valley) Engineer's Report–City of Atascadero 5-2 Prepared by NBS–Fiscal Year 2012/13 Based on average population densities and size of the structure as compared to a typical single-family residential unit, multi-family residential parcels shall be proportionately assessed for the parcel's total number of residential units utilizing a sliding benefit scale. Although multi-family properties typically receive similar benefits to that of a single-family residential, it would not be reasonable to conclude that on a per unit basis, the benefits are equal. Studies have consistently shown that the average multi-family unit impacts infrastructure approximately 75% as much as a single-family residence (Sample Sources: Institute of Transportation Engineers Informational Report Trip Generation, Fifth Edition; Metcalf and Eddy, Wastewater Engineering Treatment, Disposal, Reuse, Third Edition). These various studies indicate that most public improvements and infrastructure are utilized and impacted at reduced levels by multi- family residential units and a similar reduction in proportional benefit is appropriate. Furthermore, it is also reasonable to conclude that as the density(number of units) increases; the proportional benefit per unit tends to decline because the unit size and people per unit usually decreases. Based on these considerations and the improvements provided by this District, an appropriate allocation of special benefit for multi-family residential properties as compared to a single- family residential property 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 the remaining units. Condom!nium/Town-home Units — Condominiums and town-homes tend to share attributes of both single-family residential and multi-family residential properties and for this reason are identified as a separate land use classification. Like most single-family residential properties, these properties are not usually considered rental property and generally, the County assigns each unit a separate APN or assessment number. However, condominiums and town-homes often have similarities to multi-family residential properties in that they are generally zoned medium to high density and in some cases may involve multiple units on a single APN. In consideration of these factors it has been determined that an appropriate allocation of special benefit for condominiums, town-homes and similar residential properties is best represented by an assignment of 0.75 EBU per unit regardless of whether each unit is assigned an individual APN or there are multiple units assigned to an APN. (There is no adjustment for parcels with more than five units). Planned-Residential Development — This land use is defined as any property for which a tentative or final tract map has been filed and approved (a specific number of residential lots and units has been identified) and the property is expected to be subdivided within the fiscal year or is part of the overall improvement and development plan for the District. This land use classification often times involves more than a single parcel (e.g. the approved tract map encompasses more than a single APN). Each parcel that is part of the approved tract map shall be assessed proportionately for the proposed or estimated residential type and units to be developed on that parcel as part of the approved tract map. Accordingly, each parcel is assigned an appropriate number of benefit units that reflects the development of that property at build-out. (The EBU assigned to each parcel shall represent the combination of single-family, condominium, multi-family units to be developed). Vacant Residential — This land use is defined as property currently zoned for residential development, but a tentative or final tract map for the property has not yet been approved. Based upon the opinions of professional appraisers who appraise market property values for real estate in California, the land value portion of a property typically ranges from 20 to 30 percent of the total value of a developed residential property (the average is about 25 percent). Although the assessed value of an individual property is not 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). Street&Storm Drain District No. 01 (Apple Valley) Engineer's Report–City of Atascadero 5-3 Prepared by NBS–Fiscal Year 2012/13 Exempt Parcels — This land use identifies properties that are not assessed and are assigned 0.0 EBU. This land use classification may include but is not limited to: • Lots or parcels identified as public streets and other roadways (typically not assigned an APN by the County); • Dedicated public easements including open space areas, utility rights-of- way, greenbelts, parkways, parks or other publicly owned properties that are part of the District improvements or may provide other benefits to private properties within the District.; • Private properties that cannot be developed independently from an adjacent property, such as common areas, sliver parcels or bifurcated lots or properties with very restrictive development use. These types of parcels are considered to receive little or no benefit from the improvements and are therefore exempted from assessment, but shall be reviewed annually by the assessment engineer to confirm the parcels current development status. Government owned properties or public properties are not necessarily exempt properties and shall be subject to special benefit assessment unless it qualifies for an exempt status. Special Cases— In many districts where multiple land use classifications are involved, there are 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. The following table provides a summary of land use classifications and the Equivalent Benefit Unit calculations previously outlined. Equivalent Benefit Property Type Units Multiplier Single-family Residential 1.00 Per Unit/Lot/Parcel 0.75 Per Unit for the First 50 Units Multi-family Residential 0.50 Per Unit for Units 51-100 0.25 Per Unit for all Remaining Units Condominium/Townhome Units 0.75 Per Unit 1.00 Per Planned SF Residential Lot 0.75 Per Planned Condominium Planned Residential Development 0.75 Per Unit for the First 50 Units 0.50 Per Unit for Units 51-100 0.25 Per Unit for all Remaining Units Vacant Residential Land 1.00 Per Acre Exempt Parcels 0.00 Per Parcel The following formula is used to calculate each parcel's EBU (proportional benefit). Parcel Type EBU x Acres or Units = Parcel EBU The total number of Equivalent Benefit Units (EBU's) is the sum of the 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 the 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. Street&Storm Drain District No. 01 (Apple Valley) Engineer's Report–City of Atascadero 5-4 Prepared by NBS–Fiscal Year 2012/13 Total Balance to Levy/Total EBU = Levy per EBU Levy per EBU x Parcel EBU = Parcel Levy Amount D. ASSESSMENT RANGE FORMULA Any new or increased assessment requires certain noticing and meeting requirements by law. Prior to the passage of Proposition 218 (California Constitution Articles XIIIC and XIIID), legislative changes in the Brown Act defined a "new or increased assessment" to exclude certain conditions. These conditions included "any assessment that does not exceed an assessment formula or range of assessments previously adopted by the agency or approved 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 included 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 the 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 from February to February. Beginning with 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, reductions in the proportional special benefit assigned to a land use classifications is permitted. Changes in land use or size of an individual property resulting in an assessment increase, is not considered an increased assessment. To impose a new or increased assessment other than the annual inflationary adjustment provided by the preceding Assessment Range Formula, the City must comply with the provisions of the California Constitution Article XIIID Section 4c, that requires a public 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. Street&Storm Drain District No. 01 (Apple Valley) Engineer's Report—City of Atascadero 5-5 Prepared by NBS—Fiscal Year 2012/13 6. ASSESSMENT DIA GRA M The parcels within the Street and Storm Drain Maintenance District No. 01 (Apple Valley) consist of the lots, parcels and subdivisions of land located in the residential development known as Apple Valley, Tract 2495. The District covers approximately twenty-eight acres (28.35 acres) in the northern portion of the City of Atascadero. The following District Diagram is based on the San Luis Obispo County Assessor's Maps and the San Luis Obispo County Assessor's information and identifies the parcels of land within the proposed District, as the same existed at the time the District was formed. The combination of this map and the Assessment Roll contained in this Report constitute the District Assessment Diagram. Street&Storm Drain District No. 01 (Apple Valley) Engineer's Report—City of Atascadero 6-1 Prepared by NBS—Fiscal Year 2012/13 ASSESSMENT DIAGRAM FOR STREET AND STORM DRAIN MAINTENANCE DISTRICT NO. 1 (APPLE VALLEY) CITY OF ATASCADERO, COUNTY OF SAN LUIS OBISPO, STATE OF CALIFORNIA PROPOSED BOUNDARY MAP OF STREET AND STORM DRAIN MAINTENANCE DISTRICT NO. 01 (APPLE VALLEY) OTY Of ATASCA-XRO COUNT✓OF SAN WIS OBIST•O STATE OF CAUFORN A RD 0 rK dwa Cr rK On 6w N_Y.v m a 0. I ICO✓Carl"wr N V fr7r i K.aro 7 WMIX"AM 9WIP 9Nr M on •-. SITE rs�e+o frw.wv on O•twdgvm C=^"a w pus or a eF M's o oasar�w"*' o w K a"and W Vs 0n s A'&WrA-� d'" l . r•'� a�w�.��lop-p. .0 a.. w-v no, .41 n� 0"u.n L on OF ••�w�are 10 4b .. �' ......... ... ' co PlI o .... . VICINITY MAP OL I ftee M..a \o MuniFinancial .. rte b w z..... .a.o... "M�tr �, , YY IaN11�K/1�■ —111-Ifd O.-Gow .••al Im• 2011/2012 Storm Drain Maintenance District No. 1 Page 19 of 22 7. ASSESSMENT ROL L 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: Street&Storm Drain District No. 01 (Apple Valley) Engineer's Report—City of Atascadero 7-1 Prepared by NBS—Fiscal Year 2012/13 CITY OF ATASCADERO Street and Storm Drain Maintenance District No. 01 (Apple Valley) Fiscal Year 2012/2013 Assessment Roll Assessor's Equivalent Maximum Proposed Parcel Number Benefit Units Assessment Assessment 049-191-039 0 $ - $ - 049-191-040 0 - - 049-191-041 0 - - 049-192-001 1 613.25 582.00 049-192-002 1 613.25 582.00 049-192-003 1 613.25 582.00 049-192-004 1 613.25 582.00 049-192-005 1 613.25 582.00 049-192-006 1 613.25 582.00 049-192-007 1 613.25 582.00 049-192-008 1 613.25 582.00 049-192-009 1 613.25 582.00 049-192-010 1 613.25 582.00 049-192-011 1 613.25 582.00 049-192-012 1 613.25 582.00 049-192-013 1 613.25 582.00 049-192-014 1 613.25 582.00 049-192-015 1 613.25 582.00 049-192-016 1 613.25 582.00 049-192-017 1 613.25 582.00 049-192-018 1 613.25 582.00 049-192-019 1 613.25 582.00 049-192-020 1 613.25 582.00 049-192-021 1 613.25 582.00 049-192-022 1 613.25 582.00 049-193-001 1 613.25 582.00 049-193-002 1 613.25 582.00 049-193-003 1 613.25 582.00 049-193-004 1 613.25 582.00 049-193-005 1 613.25 582.00 049-193-006 1 613.25 582.00 049-193-007 1 613.25 582.00 049-193-008 1 613.25 582.00 049-193-009 1 613.25 582.00 049-193-010 1 613.25 582.00 049-193-011 1 613.25 582.00 049-193-012 1 613.25 582.00 049-193-013 1 613.25 582.00 049-193-014 1 613.25 582.00 049-193-015 1 613.25 582.00 049-193-016 1 613.25 582.00 049-193-017 1 613.25 582.00 049-193-018 1 613.25 582.00 049-193-019 1 613.25 582.00 Street and Storm Drain Maintenance District No. 01 (Apple Valley)Engineer's Report-City of Atascadero Prepared by NBS-Fiscal Year 2012/13 Assessor's Equivalent Maximum Proposed Parcel Number Benefit Units Assessment Assessment 049-193-020 1 613.25 582.00 049-193-021 1 613.25 582.00 049-193-022 1 613.25 582.00 049-193-023 1 613.25 582.00 049-193-024 1 613.25 582.00 049-193-025 1 613.25 582.00 049-193-026 1 613.25 582.00 049-193-027 1 613.25 582.00 049-193-028 1 613.25 582.00 049-193-029 1 613.25 582.00 049-193-030 1 613.25 582.00 049-193-031 1 613.25 582.00 049-193-032 1 613.25 582.00 049-193-033 1 613.25 582.00 049-193-034 1 613.25 582.00 049-193-035 1 613.25 582.00 049-193-036 1 613.25 582.00 049-193-037 1 613.25 582.00 049-193-038 1 613.25 582.00 049-193-039 1 613.25 582.00 049-193-040 1 613.25 582.00 049-193-041 1 613.25 582.00 049-193-042 1 613.25 582.00 049-193-043 1 613.25 582.00 049-193-044 1 613.25 582.00 049-193-045 1 613.25 582.00 049-193-046 1 613.25 582.00 049-193-047 1 613.25 582.00 049-193-048 1 613.25 582.00 049-193-049 0 - - Totals 70 $ 42,927.50 $ 40,740.00 Street and Storm Drain Maintenance District No. 01 (Apple Valley)Engineer's Report-City of Atascadero Prepared by NBS-Fiscal Year 2012/13 ITEM NUMBER: A - 3 DATE: 05/08/12 Attachment 5 DRAFT RESOLUTION D RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ATASCADERO, CALIFORNIA, INITIATING PROCEEDINGS FOR ANNUAL LEVY OF ASSESSMENTS FOR THE ATASCADERO LANDSCAPING AND LIGHTING MAINTENANCE DISTRICT NO. 01 (APPLE VALLEY) FOR FISCAL YEAR 2012/2013 PURSUANT TO THE PROVISIONS OF PART 2 OF DIVISION 15 OF THE CALIFORNIA STREETS AND HIGHWAYS CODE. The City Council of the City of Atascadero (hereafter referred to as "City Council") hereby finds, determines,resolves and orders as follows: WHEREAS, the City Council has, by previous Resolutions, formed the Atascadero Landscaping and Lighting Maintenance District No. 01 (Apple Valley) (hereafter referred to as "District") pursuant to the provisions of the Landscaping and Lighting Act of 1972, Part 2 of Division 15 of the Streets and Highways Code of California, beginning with Section 22500 (hereafter referred to as the "Act") that provides for levy and collection of assessments by the County of San Luis Obispo for the City of Atascadero to pay the maintenance and services of lighting facilities, landscaping, and appurtenant facilities and operations related thereto; and, WHEREAS, the District and the associated assessments are in compliance with the provisions of California Constitution Article XIIID; and, WHEREAS, the City Council has retained NBS for the purpose of assisting with the Annual Levy of the District and to prepare and file a report with the City Clerk in accordance with the Act; NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Atascadero as follows: SECTION 1. Engineer's Annual Levy Report: The City Council hereby orders NBS to prepare the Engineer's Annual Levy Report concerning the levy of assessments for the District in accordance with Chapter 3, Section 22622 of the Act. SECTION 2. Proposed Improvements and Any Substantial Changes in Existing Improvements: The improvements within the District 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 Act that were installed as part of property development and associated with the District. Said improvements may include, but are not limited to the materials, equipment, utilities, labor, appurtenant facilities and expenses necessary for the ongoing maintenance and operation of public street lighting as well as landscaped parkways, medians, slopes, trails, park areas, drainage basins, open space areas and other designated easements or right-of-ways constructed and installed as part of the development plans and agreements approved for the development of each lot and parcel within the District. The ITEM NUMBER: A - 3 DATE: 05/08/12 Attachment 5 Engineer's Annual Levy Report describes any new improvements or substantial changes in existing improvements. 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: Bob Kelley,Mayor ATTEST: Marcia McClure Torgerson, C.M.C., City Clerk APPROVED AS TO FORM: Brian A. Pierik, City Attorney ITEM NUMBER: A- 3 DATE: 05/08/12 Attachment 6 DRAFT RESOLUTION E RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ATASCADERO, CALIFORNIA, FOR PRELIMINARY APPROVAL OF THE ENGINEER'S ANNUAL LEVY REPORT FOR THE ATASCADERO LANDSCAPING AND LIGHTING MAINTENANCE DISTRICT NO. 01 (APPLE VALLEY) FOR FISCAL YEAR 2012/2013. The City Council of the City of Atascadero (hereafter referred to as "City Council") does resolve as follows: WHEREAS, the City Council has, by previous Resolutions, ordered the preparation of an Engineer's Annual Levy Report (hereafter referred to as the "Report") for the district known and designated as the Atascadero Landscaping and Lighting Maintenance District No. 01 (Apple Valley) (hereafter referred to as the "District")pursuant to the provisions of the Landscaping and Lighting Act of 1972, Part 2 of Division of the Streets and Highways Code of California, beginning with Section 22500 (hereafter referred to as the "Act"); and, WHEREAS, the District and the associated assessments are in compliance with the provisions of California Constitution Article XIIID; and, WHEREAS, the City Council has now been presented with the Report as required by Chapter 1, Article 4, Section 22566 of said Act; and, WHEREAS, the City Council has carefully examined and reviewed the Report as presented and is preliminarily satisfied with the Report, each of the budget items and documents as set forth therein and is satisfied on a preliminary basis that the proposed assessments have been spread in accordance with the benefits received from the improvements, operation, maintenance, and services to be performed within each benefit zone as set forth in said Report; NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Atascadero as follows: SECTION 1. The above recitals are true and correct. SECTION 2. That the presented Report consists of the following: a. A Description of the Improvements b. The Annual Budget(Costs and Expenses of Services, Operation, and Maintenance) c. The Method of Apportionment that details the method of calculating each parcel's proportional special benefits and annual assessment. d. The District Roll containing the proposed assessment for each parcel within the District for Fiscal Year 2012/2013. ITEM NUMBER: A- 3 DATE: 05/08/12 Attachment 6 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. That 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. 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: Bob Kelley,Mayor ATTEST: Marcia McClure Torgerson, C.M.C., City Clerk APPROVED AS TO FORM: Brian A. Pierik, City Attorney ITEM NUMBER: A- 3 DATE: 05/08/12 Attachment 7 DRAFT RESOLUTION F RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ATASCADERO, CALIFORNIA, DECLARING ITS INTENTION TO LEVY AND COLLECT ASSESSMENTS FOR THE ATASCADERO LANDSCAPING AND LIGHTING MAINTENANCE DISTRICT NO. 01 (APPLE VALLEY) FOR FISCAL YEAR 2012/2013. The City Council of the City of Atascadero (hereafter referred to as "City Council") does resolve as follows: WHEREAS, The City Council has by previous Resolution initiated proceedings for fiscal year 2012/2013 regarding the levy and collection of assessments for the Atascadero Landscaping and Lighting District No. 01 (Apple Valley) (hereafter referred to as the "District"). Pursuant to the provisions of the Landscaping and Lighting Act of 1972, Part 2, Division 15 of the California Streets and Highways Code (commencing with section 22500) (hereafter referred to as the "Act"), assessments for the District shall be levied and collected by the County of San Luis Obispo for the City of Atascadero to pay the maintenance and services of the improvements and facilities related thereto; and, WHEREAS, the proposed District assessments for fiscal year 2012/2013 are less than or equal to the maximum assessments previously approved in accordance with the requirements of the California Constitution,Article XIIID; and, WHEREAS, there has now been presented to this City Council an Engineer's Annual Levy Report (hereafter referred to as the "Engineer's Report"), and said Engineer's Report has been filed with the City Clerk in accordance with the Act; and, WHEREAS, the City Council has examined and reviewed the Engineer's Report as presented and is satisfied with the Report, each of the budget items and documents as set forth therein and is satisfied that the proposed assessments contained therein, have been spread in accordance with the benefits received from the improvements, operation, 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, pursuant to Chapter 3, Section 22624 of the Act, as follows: SECTION 1. The above recitals are true and correct. SECTION 2. The City Council hereby declares its intention to seek the annual levy and collection of assessments within the District pursuant to the Act, over and including the lands, lots and parcels within the District boundary. The City Council further declares its intention to levy and collect assessments on such land to pay the annual costs and expenses of the improvements and services described in Section 4 of this Resolution, for fiscal year 2012/2013. SECTION 3. The boundaries of the District are described in the Engineer's Report and are consistent with the boundary established and described in the original formation documents, on file with the City Clerk, and incorporated herein by reference. The District is within the boundaries of ITEM NUMBER: A- 3 DATE: 05/08/12 Attachment 7 the City of Atascadero, within the County of San Luis Obispo, State of California and includes the territory known as Apple Valley and referred to as the "Atascadero Landscaping and Lighting District No. F. SECTION 4. The improvements within the District include the ongoing maintenance, operation and servicing of local landscaping and street lighting improvements established or installed in connection with development of properties within the District. These improvements generally include, but are not limited to the materials, equipment, utilities, labor, appurtenant facilities and expenses necessary for the ongoing maintenance and operation of public street lighting as well as landscaped parkways, medians, slopes, trails, park areas, drainage basins, open space areas and other designated easements or right-of-ways constructed and installed as part of the development plans and agreements approved for the development of each lot and parcel within the District. SECTION 5. The proposed assessments for fiscal year 2012/2013, as outlined in the Engineer's Report, do not exceed the maximum assessment approved by the property owners through a property owner balloting proceeding conducted in 2005. As such, the proposed assessments do not constitute an increased assessment and do not require additional property owner approval in accordance with the requirements of the California Constitution, Article XIIID. SECTION 6. The City Council hereby declares its intention to conduct a Public Hearing concerning the District and the levy of assessments in accordance with Chapter 3, Section 22626 of the Act. SECTION 7. Notice is hereby given that a Public Hearing on these matters will be held by the City Council on Tuesday, June 12, 2012, at 6:00 p.m., at the City Council Chambers, 6907 El Camino Real, Atascadero, California or as soon thereafter as feasible. SECTION 8. The City Council hereby authorizes and directs the City Clerk to give notice of the time and place of the Public Hearing to all property owners within the District pursuant to Sections 22626, 22552 and 22553 of the Act and 6061 of the Government Code. The City Clerk shall give notice to all property owners by: causing notice of the public hearing to be published in the local newspaper one time at least 10 days prior to the Public Hearing; and,posting a copy of this resolution on the official bulletin board(s)customarily used for posting such notices. ITEM NUMBER: A- 3 DATE: 05/08/12 Attachment 7 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: Bob Kelley,Mayor ATTEST: Marcia McClure Torgerson, C.M.C., City Clerk APPROVED AS TO FORM: Brian A. Pierik, City Attorney helping communities fund tomorrow City of Atascadero Annual Engineer's Report Landscaping and Lighting District No. 01 (Apple Valley) Fiscal Year 2012/13 Main Office 32605 Temecula Parkway, Suite 100 Temecula, CA 92592 Toll free: 800.676.7516 Fax: 951.296.1998 Regional Office 870 Market Street, Suite 1223 San Francisco, CA 94102 Toll free: 800.434.8349 Fax: 415.391.8439 CITY OF ATASCADERO Landscaping & Lighting District No. 01 (Apple Valley) 6907 EI Camino Real Atascadero, CA 93422 Phone — (805) 461-5000 Fax — (805) 461-7612 CITY COUNCIL Bob Kelley, Mayor Tom O'Malley, Mayor Pro Tem Brian Sturtevant, Council Member Jerry Clay, Sr., Council Member Roberta Fonzi, Council Member AGENCY STAFF Wade G. McKinney, City Manager James R. Lewis, Assistant City Manager Rachelle Rickard, Administrative Services Director Jeri Rangel, Assistant Administrative Services Director NBS Danielle Wood, Client Services Director Adina Vazquez, Senior Consultant TABLE OF CONTENTS 1. ENGINEER'S LETTER 1-1 2. EXECUTIVE SUMMARY 2-1 3. PLANS AND SPECIFICATIONS 3-1 A. DESCRIPTION OF THE DISTRICT.............................................................. 3-1 B. IMPROVEMENTS AND SERVICES AUTHORIZED BY THE 1972 ACT ...... 3-1 C. DESCRIPTION OF IMPROVEMENTS AND SERVICES.............................. 3-2 4. ESTIMATE OF COSTS 4-1 5. METHOD OF ASSESSMENT 5-1 A. GENERAL.................................................................................................... 5-1 B. BENEFIT ANALYSIS.................................................................................... 5-1 C. ASSESSMENT METHODOLOGY................................................................ 5-2 D. ASSESSMENT RANGE FORMULA............................................................. 5-6 6. ASSESSMENT DIAGRAM 6-1 7. ASSESSMENT ROLL 7-1 Landscaping & Lighting District No. 01 (Apple Valley) Engineer's Report—City of Atascadero Table of Contents Prepared by NBS—Fiscal Year 2012/13 1. ENGINEER'S LETTER WHEREAS, on March 24, 2005 by Resolution No. 2005-045, the City Council of the City of Atascadero (the "City"), State of California, in accordance with and pursuant to the Landscape and Lighting Act of 1972, Part 2, Division 15 of the California Streets and Highways Code (commencing with Section 22500 (the "1972 Act") established the City of Atascadero Landscaping and Lighting District No. 01 (Apple Valley) (the "District"); and WHEREAS, on May 8, 2012, the City Council, under the 1972 Act, adopted its Resolution Initiating Proceedings for the Annual Levy of Assessments and Ordering the Preparation of an Engineer's Report for the District; and WHEREAS, the Resolution Initiating Proceedings directed NBS to prepare and file a report describing the general nature, location, and extent of the improvements to be maintained; an estimate of the costs of the maintenance, operations, and servicing of the improvements for the District for the referenced fiscal year; a diagram for the District, showing the area and properties to be assessed; and an assessment of the estimated costs of the administration, maintenance, operations, and servicing the improvements, assessing the net amount upon all assessable lots and/or parcels within the District in proportion to the special benefit received. NOW THEREFORE, the assessments as detailed in this Engineer's Report and as summarized in the table below are made to cover the portion of the estimated costs of maintenance, operation and servicing of the improvements to be paid by the assessable real property within the District in proportion to the special benefit received. The following table summarizes the proposed assessment for Fiscal Year 2012/13: FY 2012/13 Budget Summary Total Proposed Total Costs Not Proposed Benefit Maximum Rate Description Costs Assessed Assessment Units Rate Per BU Annual Maintenance $74,710 $12,378 $62,332 Administration 6,830 0 6,830 Levy Adjustments 32,540 12,378 20,162 Total 1 $49,000 $0 $49,000 70 $1,340.15 $700.00 I, the undersigned, respectfully submit the enclosed Engineer's Report and, to the best of my knowledge, information, and belief, the Engineer's Report, Assessments, and the Assessment Diagram herein have been prepared, computed, and levied in accordance with the assessment methodology adopted, approved, and ordered by the City Council of the City of Atascadero and the 1972 Act. NBS Landscaping & Lighting District No. 01 (Apple Valley)Engineer's Report—City of Atascadero 1-1 Prepared by NBS—Fiscal Year 2012/13 2. EXECUTIVE SUMMARY Pursuant to the provisions of the Landscaping 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 "Article XIIID"), the City Council of the City of Atascadero, County of San Luis Obispo, State of California (hereafter referred to as "City"), executed the proceedings required for the establishment of the special benefit assessment district designated as: Landscaping and Lighting District No. 01 (Apple Valley) (hereafter referred to as the "District"), which includes the lots and parcels of land within the residential subdivision known as Apple Valley, Tract 2495 within the City limits of the City. This Engineer's Report (hereafter referred to as the "Report") has been prepared in connection with the levy and collection of annual assessments related thereto for fiscal year 2012/2013, as required pursuant to Chapter 1, Article 4 of the 1972 Act. The City Council formed the District, and provided for the levy and collection of 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 Article XIIID. This Report describes the District, the improvements, and the proposed assessments to be levied against properties in connection with the special benefits the properties will receive from the maintenance and servicing of the District improvements. The annual assessments will provide a funding source 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 boundaries of the District, the proposed improvements, the method of apportionment, and assessments described herein are based on current development plans and specifications for Tract 2495; and by reference these plans and specifications are made part of this Report. 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 the District formation, the City of Atascadero conducted 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 conducted a noticed public hearing on May 24, 2005 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 were opened and tabulated to determine whether majority protest existed (ballots were weighted based on assessment amounts), and by resolution the City Council confirmed the results of the ballot tabulation. Tabulation of the ballots indicated that majority protest did not exist for the proposed assessments and the assessment range formula presented and described herein, the City Council approved the Report (as submitted or amended), ordered the formation of the District, and approved the levy and collection of assessments. Landscaping & Lighting District No. 01 (Apple Valley)Engineer's Report—City of Atascadero 2-1 Prepared by NBS—Fiscal Year 2012/13 The assessments for fiscal year 2005/2006 were 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. Landscaping & Lighting District No. 01 (Apple Valley)Engineer's Report—City of Atascadero 2-2 Prepared by NBS—Fiscal Year 2012/13 3. PLA NS A ND SPECIFI CA TIONS A. DESCRIPTION OF THE DISTRICT The territory within the District consists of the lots, parcels and subdivisions of land within the proposed residential subdivision known as the Apple Valley, Tract 2495, which encompasses an area of land totaling approximately twenty-eight acres (28.35 acres). This residential subdivision includes seventy (70) single-family residential homes. The subdivision is situated in the northern portion of the City of Atascadero just southwest of Highway 101 and is generally located: • South of Del Rio Road; • North of Conejo Road; • West of Ramona Road; and, • East of Graves Creek B. IMPROVEMENTS AND SERVICES AUTHORIZED BY THE 1972 ACT As generally defined by the 1972 Act 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: 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 Landscaping & Lighting District No. 01 (Apple Valley)Engineer's Report—City of Atascadero 3-1 Prepared by NBS—Fiscal Year 2012/13 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. C. DESCRIPTION OF IMPROVEMENTS AND SERVICES The purpose of this District is to ensure the ongoing maintenance, operation and servicing of local landscaping and street lighting improvements established or installed in connection with development of properties within the District. The improvements may consist of all or a portion of the public landscaped areas, street lighting and appurtenant facilities within and adjacent to the District (Tract 2495). These improvements generally include, but are not limited to the materials, equipment, utilities, labor, appurtenant facilities and expenses necessary for the ongoing maintenance and operation of public street lighting as well as landscaped parkways, medians, slopes, trails, park areas, drainage basins, open space areas and other designated easements or right-of-ways constructed and installed as part of the development plans and agreements approved for the development of each lot and parcel within the District. The improvements to be maintained and funded entirely or partially through the District assessments are generally described as: • Streetscape landscaping including street trees located on the perimeter of the development and interior streets of Tract 2495 that are within the public right-of-ways or easements and dedicated to the City for maintenance; • Open space areas and fuel modification areas within or adjacent to the District boundaries; • Park areas, recreational equipment, trails and landscaped drainage facilities developed and constructed as part of developing properties within Tract 2495; • Public lighting facilities including street lighting, safety lighting and ornamental lighting installed as part of the residential development or landscaped improvement areas; • Appurtenant facilities, equipment, materials and utilities related to the aforementioned improvements; • Specifically not included as District improvements are those improvements located on private property, improvements and facilities that may be provided or maintained by an agency other than the City; improvements and facilities that may be provide by another assessment or tax levied by the City or any improvement provided and maintained by a Homeowner's Association or similar entity. Detailed maps and descriptions of the location and extent of the specific improvements to be maintained by the District are on file in the Office of Public Works and by reference are made part of this Report. Those portions of the District improvements that may be identified as general benefit or will be funded in whole or in part by other revenue sources as part of the approved Landscaping & Lighting District No. 01 (Apple Valley)Engineer's Report—City of Atascadero 3-2 Prepared by NBS—Fiscal Year 2012/13 development agreements, will not be included as part of the District assessments. The net annual cost to provide and maintain the improvements determined to be of special benefit shall be allocated to each property in proportion to the special benefits received. Landscape Improvements The landscape improvements for the District may include, but are not limited to turf, ground cover, shrubs and plants, trees, irrigation and drainage systems, ornamental lighting, masonry walls or other fencing, hardscape improvements, monuments, and associated appurtenant facilities located within the landscape easements or public right-of-ways. Specifically the landscape improvement areas for this District are identified as: • Approximately 30,580 square feet of streetscape (parkway) landscaping within the public right- of-ways located on the perimeter of the development (south side of Del Rio Road); and along various locations of the interior streets including Via Colonia Court, San Ramon Road, Via Huerto Court, Avenida Manzana, and San Ramon Road. • Approximately 108 street trees located along Del Rio Road, Via Colonia Court, San Ramon Road, Via Huerto Court, Avenida Manzana, San Ramon Road and Conejo Road; • Approximately 12,541 square feet of landscaping and trees within the median islands on San Ramon Road located at the two entryways to the development (Del Rio Road and Conejo Road); • Approximately 106,460 square feet of non-irrigated open space area within the District; • Approximately 109,837 square feet of irrigated park and open space areas within the boundaries of the District including 56,647 square feet of turf; 40,335 square feet of irrigated open space; and 12,855 square feet of landscaped slopes within two drainage basins (6,690 and 6,165 square feet respectively); along with various trees and picnic areas; • Approximately 10,320 square feet of paths and trails, 25,394 square feet sidewalks and 5,145 linear feet of fencing within and adjacent to the various landscape improvement areas. Public Lighting Improvements The lighting improvements may include but are not limited to the cost of providing electrical energy and servicing of lighting fixtures, poles, meters, conduits, electrical cable and associated appurtenant facilities associated with: • Lighting facilities located within the landscaped areas including safety lights, security lights or ornamental lights installed as part of the District improvements. Landscaping & Lighting District No. 01 (Apple Valley)Engineer's Report—City of Atascadero 3-3 Prepared by NBS—Fiscal Year 2012/13 4. ESTIMATE OF COSTS Costs Not Fiscal Year BUDGET Total Budget Assessed 2012/2013 DIRECT COSTS Annual Maintenance Landscape Services $45,340 $7,150 $38,190 Landscape Supplies 2,000 - 2,000 Landscape Utilities 11,780 3,903 7,877 City Landscape Services 15,590 1,325 14,265 Total Annual Direct Costs $74,710 $12,378 $62,332 ADMINISTRATION EXEPNSES Annual Administration Expenses City Annual Administration $1,600 $- $1,600 Engineer's Report&Services 4,590 - 4,590 County Administration Fee 140 - 140 Public Noticing 500 - 500 Total Annual Administration Costs $6,830 $- $6,830 TOTAL DIRECT&ADMINISTRATION COSTS $81,540 $12,378 $69,162 CAPITAL RESERVE COLLECTIONS/(USES) Landscape Rehabilitation/Replacement $2,649 $- $2,649 Median Rehabilitation/Replacement 238 - 238 Open Space Rehabilitation/Replacement 1,120 - 1,120 Tree Rehabilitation/Replacement 2,033 - 2,033 Other Rehabilitation/Replacement 800 - 800 Use of Reserves 8,000 - 8,000 Total Annual Capital Reserve Collections/(Uses) $(1,160) $- $(1,160) LEVY ADJUSTMENTS Interest Income-Improvement Fund $(293) $- $(293) Interest Income-Operating Reserve Fund 1,351 689 662 Improvement Fund Collection (Use) (8,000) - (8,000) Operating Reserve Fund Collection Use 21,736 11,689 10,047 Total Levy Adjustments $(31,380) $(12,378) $(19,002) BALANCE TO LEVY $49,000 $- $49,000 DISTRICT STATISTICS Total Parcels 74 Parcels Levied 70 Total EBU 70 Levy per EBU $700.00 Maximum Levy per EBU $1,340.15 FUND BALANCE INFORMATION Beginning Operating Reserve Balance $39,221 $41,295 Operational Reserve Interest 689 725 Operational Reserve Collection Use 12,378 19,002 Estimated Ending Operating Reserve Balance $27,532 $23,018 Beginning Improvement Fund Balance $12,900 Improvement Fund Interest 226 Improvement Fund Collection (Use) (1,160) Estimated Ending Improvement Fund Balance $11,966 Landscaping & Lighting District No. 01 (Apple Valley)Engineer's Report-City of Atascadero 4-1 Prepared by NBS-Fiscal Year 2012/13 5. METHOD OF ASSESSMENT 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 Article XIIID. 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 1972 Act and Article XIIID. The improvements provided by this District and for which properties will be assessed have been identified as necessary, required and/or desired for the orderly development of the properties within the District to their full potential, consistent with the development plans and applicable portions of the City General Plan. As such, these improvements would be necessary and required of individual property owners for the development of such properties and the ongoing operation, servicing and maintenance of these improvements would be the financial obligation of those properties. Therefore, the improvements and the annual costs of ensuring the maintenance and operation of the improvements are a distinct and special benefit to the properties within the District. Any improvement or portion thereof that is considered to be of general benefit shall be funded by other revenue sources and not included as part of the special benefit assessments allocated to properties within the District. Special Benefit The method of apportionment (method of assessment) established herein is based on the premise that each assessed parcel within the District receives special benefits from the improvements and the desirability and security of those properties is enhanced by the presence of public lighting and well- maintained landscaping in close proximity to those properties. The special benefits associated with landscape improvements are specifically: • Enhanced desirability of properties through association with the improvements. • Improved aesthetic appeal of properties providing a positive representation of the area and properties. • Enhanced adaptation of the urban environment within the natural environment from adequate green space and landscaping. • Environmental enhancement through improved erosion resistance, dust and debris control, Landscaping & Lighting District No. 01 (Apple Valley)Engineer's Report—City of Atascadero 5-1 Prepared by NBS—Fiscal Year 2012/13 and fire prevention. • Increased sense of pride in ownership of property within the District resulting from well- maintained improvements associated with the properties. • Enhanced quality of life through well-maintained green space and landscaped areas. • Reduced criminal activity and property-related crimes (especially vandalism) against properties in the District through well-maintained surroundings and amenities including abatement of graffiti. • Enhanced environmental quality of the parcels by moderating temperatures, providing oxygenation and attenuating noise. The special benefits of street lighting and other public lighting facilities are the convenience, safety, and security of property, improvements, and goods. Specifically: • Enhanced deterrence of crime and the aid to police protection. • Increased nighttime safety on roads, streets and public areas. • Improved ability of pedestrians and motorists to see. • Improved ingress and egress to property. • Reduced vandalism and other criminal act and damage to improvements or property. • Improved traffic circulation and reduced nighttime accidents and personal property loss. The preceding special benefits contribute to the esthetic value and desirability of each of the assessed parcels within the District and thereby provide a special enhancement of the properties. Furthermore, it has been determined that the lack of funding to properly service and maintain the District improvements would have a negative impact on the properties within the District. General Benefit In reviewing each of the District improvements, the proximity of those improvements to both properties within the District and those outside the District as well as the reasons for installing and constructing such improvements, it is evident that the improvements are solely the result of developing properties within the District and the ongoing maintenance and operation of these improvements will directly effect the properties within the District. Although the improvements include public areas, easements, right-of-ways and other amenities available or visible to the public at large, the construction and installation of these improvements were only necessary for the development of properties within the District and were not required nor necessarily desired by any properties or developments outside the District boundary and any public access or use of the improvements by others is incidental. Therefore, it has been determined that the improvements and the ongoing maintenance, servicing and operation of those improvements provide no measurable general benefit to properties outside the District or to the public at large, but clearly provide distinct and special benefits to properties within the District. C. ASSESSMENT METHODOLOGY The method of apportionment for the District calculates the receipt of special benefit from the respective improvements based on the actual or proposed land use of the parcels within the District. Landscaping & Lighting District No. 01 (Apple Valley)Engineer's Report—City of Atascadero 5-2 Prepared by NBS—Fiscal Year 2012/13 The special benefit received by each lot or parcel is equated to the overall land use of parcels within the District based on the parcel's actual land use or proposed development. The costs associated with the improvements shall be fairly distributed among the parcels based upon the special benefit received by each parcel. Additionally, in compliance with the Article XIIID Section 4, each parcel's assessment may not exceed the reasonable cost of the proportional special benefit conferred to that parcel. The benefit formula used to determine the assessment obligation is therefore based upon both the improvements that benefit the parcels within the District as well as the proposed land use of each property as compared to other parcels that benefit from those specific improvements. To identify and determine the special benefit to be received by each parcel and their proportionate share of the improvement costs it is necessary to consider the entire scope of the planned improvements as well as individual property development within the District. Upon review of the proposed improvements it has been determined that each of the residential parcels within the District receives special benefits from the improvements to be funded by annual assessments and based on the planned property development a single zone of benefit is appropriate for the allocation of the assessments and proportional benefit. Equivalent Benefit Units: To assess benefits equitably it is necessary to relate each property's proportional special benefits to the special benefits of the other properties within the District. The method of apportionment established for most districts formed under the 1972 Act utilizes a weighted method of apportionment known as an Equivalent Benefit Unit 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 the other land uses are converted to a weighted EBU based on an assessment formula that equates the property's specific development status, type of development (land use), and size of the property, as compared to a single-family home site. Although the Equivalent Benefit Unit method of apportioning special benefit is most commonly used and applied to districts that have a wide range of land use classifications (residential and non- residential use), this District is comprised of only residential properties and the following apportionment analysis of special benefit addresses only residential land uses. Not all land use types described in the following are necessarily applicable to the development of properties within this District, but are presented for comparison purposes to support the proportional special benefit applied to those land use types within the District. Single-family Residential — This land use is defined as a fully subdivided residential home site with or without a structure. This land use is assessed 1.00 EBU per lot or parcel. This is the base value that the other properties are compared and weighted against regarding special benefit. Multi-family Residential — This land use is defined as a fully subdivided residential parcel that has more than one residential unit developed on the property. (This land use typically includes apartments, duplexes, triplex etc., but does not generally include condominiums, town-homes or mobile home 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 Landscaping & Lighting District No. 01 (Apple Valley)Engineer's Report–City of Atascadero 5-3 Prepared by NBS–Fiscal Year 2012/13 unit tends to decline because the unit size and people per unit usually decreases. Based on these considerations and the improvements provided by this District, an appropriate allocation of special benefit for multi-family residential properties as compared to a single- family residential is best represented by the following special benefit assignment: 0.75 EBU per unit for the first 50 units; 0.50 EBU per unit for units 51 through 100; and 0.25 EBU per unit for remaining units. Condominium/Town-home Units — Condominiums and town-homes tend to share attributes of both single-family residential and multi-family residential properties and for this reason are identified as a separate land use classification. Like most single-family residential properties, these properties are not usually considered rental property and generally, the County assigns each unit a separate APN or assessment number. However, condominiums and town-homes often have similarities to multi-family residential properties in that they are generally zoned medium to high density and in some cases may involve multiple units on a single APN. In consideration of these factors it has been determined that an appropriate allocation of special benefit for condominiums, town-homes and similar residential properties is best represented by an assignment of 0.75 EBU per unit regardless of whether each unit is assigned an individual APN or there are multiple units assigned to an APN. (There is no adjustment for parcels with more than five units). Planned-Residential Development— This land use is defined as any property for which a tentative or final tract map has been filed and approved (a specific number of residential lots and units has been identified) and the property is expected to be subdivided within the fiscal year or is part of the overall improvement and development plan for the District. This land use classification often times involves more than a single parcel (e.g. the approved tract map encompasses more than a single APN). Each parcel that is part of the approved tract map shall be assessed proportionately for the proposed or estimated residential type and units to be developed on that parcel as part of the approved tract map. Accordingly, each parcel is assigned an appropriate number of benefit units that reflects the development of that property at build-out. (The EBU assigned to each parcel shall represent the combination of single-family, condominium, multi-family units to be developed). Vacant Residential — This land use is defined as property currently zoned for residential development, but a tentative or final tract map for the property has not yet been approved. Based upon the opinions of professional appraisers who appraise market property values for real estate in California, the land value portion of a property typically ranges from 20 to 30 percent of the total value of a developed residential property (the average is about 25 percent). Although the assessed value of an individual property is not 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 1.00 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 25.00 EBU (parcels in excess of 25 acres are assigned 25.00 EBU). Parcels less than one acre, shall be assigned a minimum of 1.00 EBU (similar to a vacant lot within a residential tract). Exempt Parcels — This land use identifies properties that are not assessed and are assigned 0.00 EBU. This land use classification may include but is not limited to: • Lots or parcels identified as public streets and other roadways (typically not assigned an APN by the County); • Dedicated public easements including open space areas, utility rights-of- way, greenbelts, parkways, parks or other publicly owned properties that are part of the District improvements or may provide other benefits to private properties within the District; Landscaping & Lighting District No. 01 (Apple Valley)Engineer's Report–City of Atascadero 5-4 Prepared by NBS–Fiscal Year 2012/13 • 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 are 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. The following table provides a summary of land use classifications and the Equivalent Benefit Unit calculations previously outlined. Equivalent Property Type Benefit Units Multiplier Single-family Residential 1.00 Per Unit/Lot/Parcel 0.75 Per Unit for the First 50 Units Multi-family Residential 0.50 Per Unit for Units 51-100 0.25 Per Unit for all Remaining Units Condominium/Townhome Units 0.75 Per Unit 1.00 Per Planned SF Residential Lot 0.75 Per Planned Condominium Planned Residential Development 0.75 Per Unit for the First 50 Units 0.50 Per Unit for Units 51-100 0.25 Per Unit for all Remaining Units Vacant Residential Land 1.00 Per Acre Exempt Parcels 0.00 Per Parcel The following formula is used to calculate each parcel's EBU (proportional benefit). Parcel Type EBU x Acres or Units = Parcel EBU The total number of Equivalent Benefit Units (EBU's) is the sum of the 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 the 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 Landscaping & Lighting District No. 01 (Apple Valley) Engineer's Report–City of Atascadero 5-5 Prepared by NBS—Fiscal Year 2012/13 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 included 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 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 from February to February. The Maximum Assessment rate was increased by 3.0%for fiscal year 2012/2013. Beginning with the second fiscal year (fiscal year 2006/2007) and each fiscal year thereafter, the Maximum Assessment Rate is recalculated and a new Maximum Assessment Rate is 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, reductions in the proportional special benefit assigned to a land use classifications are permitted. Changes in land use or size of an individual property resulting in an assessment increase, is not considered an increased assessment. To impose a new or increased assessment other than the annual inflationary adjustment provided by the preceding Assessment Range Formula, the City must comply with the provisions of 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. Landscaping & Lighting District No. 01 (Apple Valley)Engineer's Report—City of Atascadero 5-6 Prepared by NBS—Fiscal Year 2012/13 6. ASSESSMENT DIA GRA M The parcels within the Landscaping and Lighting District No. 01 (Apple Valley) consist of the lots, parcels and subdivisions of land located in the planned residential development known as Apple Valley, Tract 2495. The District covers approximately twenty-eight acres (28.35 acres) in the northern portion of the City of Atascadero. The following District Diagram is based on the San Luis Obispo County Assessor's Maps and the San Luis Obispo County Assessor's information and identifies the original parcels of land within the proposed District. 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, was presented to the property owners of record and approved in accordance with the provisions of the California Constitution. Landscaping & Lighting District No. 01 (Apple Valley)Engineer's Report—City of Atascadero 6-1 Prepared by NBS—Fiscal Year 2012/13 ASSESSMENT DIAGRAM FOR LANDSCAPE AND LIGHTING DISTRICT NO. 1 (APPLE VALLEY) CITY OF ATASCADERO, COUNTY OF SAN LUIS OBISPO, STATE OF CALIFORNIA BOUNDARY IAP OF LANDSCAPING AND LIGHTING DISTRICT NO. 01 (APPLE VALLEY) OTY OF ATASCA3rRO COUNTY OF SAN W6 ONSPO STATE OF CAIKCRM A we a ni wo v r an aim wo_�••s aor•err wr•a w•oma K ralr 0 v.403OW 0 on uaK�solo" .�'!2 on s.wavy Corny o w Ir aom raw IV tr rau.k +i aM1 0014 v m oh a'Aw AT.SYN WWA saw A CF"OF A and•+sw7/r w «� - U .4,"�,,d VICINI'T'Y mAp f doo ar r Q m qr•w. .r� MuniFinancial •.a-Z :ar.", 'X' CID YY�N X10 4Af•1 2011/2012 L&L No. 1 Page 19 of 22 7. ASSESSMENT ROL L 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 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 assessment amounts for each of the parcels within the District as determined by the assessment rates and method of apportionment described herein: Landscaping & Lighting District No. 01 (Apple Valley)Engineer's Report—City of Atascadero 7-1 Prepared by NBS—Fiscal Year 2012/13 CITY OF ATASCADERO Landscaping and Lighting District No. 01 (Apple Valley) Fiscal Year 2012/2013 Assessment Roll Assessor's Equivalent Maximum Proposed Parcel Number Benefit Units Assessment Assessment 049-191-039 0 $ - $ - 049-191-040 0 - - 049-191-041 0 - - 049-192-001 1 1,340.15 700.00 049-192-002 1 1,340.15 700.00 049-192-003 1 1,340.15 700.00 049-192-004 1 1,340.15 700.00 049-192-005 1 1,340.15 700.00 049-192-006 1 1,340.15 700.00 049-192-007 1 1,340.15 700.00 049-192-008 1 1,340.15 700.00 049-192-009 1 1,340.15 700.00 049-192-010 1 1,340.15 700.00 049-192-011 1 1,340.15 700.00 049-192-012 1 1,340.15 700.00 049-192-013 1 1,340.15 700.00 049-192-014 1 1,340.15 700.00 049-192-015 1 1,340.15 700.00 049-192-016 1 1,340.15 700.00 049-192-017 1 1,340.15 700.00 049-192-018 1 1,340.15 700.00 049-192-019 1 1,340.15 700.00 049-192-020 1 1,340.15 700.00 049-192-021 1 1,340.15 700.00 049-192-022 1 1,340.15 700.00 049-193-001 1 1,340.15 700.00 049-193-002 1 1,340.15 700.00 049-193-003 1 1,340.15 700.00 049-193-004 1 1,340.15 700.00 049-193-005 1 1,340.15 700.00 049-193-006 1 1,340.15 700.00 049-193-007 1 1,340.15 700.00 049-193-008 1 1,340.15 700.00 049-193-009 1 1,340.15 700.00 049-193-010 1 1,340.15 700.00 049-193-011 1 1,340.15 700.00 049-193-012 1 1,340.15 700.00 049-193-013 1 1,340.15 700.00 049-193-014 1 1,340.15 700.00 049-193-015 1 1,340.15 700.00 049-193-016 1 1,340.15 700.00 049-193-017 1 1,340.15 700.00 049-193-018 1 1,340.15 700.00 049-193-019 1 1,340.15 700.00 Landscaping and Lighting District No. 01 (Apple Valley) Engineer's Report-City of Atascadero Prepared by NBS-Fiscal Year 2012/13 Assessor's Equivalent Maximum Proposed Parcel Number Benefit Units Assessment Assessment 049-193-020 1 1,340.15 700.00 049-193-021 1 1,340.15 700.00 049-193-022 1 1,340.15 700.00 049-193-023 1 1,340.15 700.00 049-193-024 1 1,340.15 700.00 049-193-025 1 1,340.15 700.00 049-193-026 1 1,340.15 700.00 049-193-027 1 1,340.15 700.00 049-193-028 1 1,340.15 700.00 049-193-029 1 1,340.15 700.00 049-193-030 1 1,340.15 700.00 049-193-031 1 1,340.15 700.00 049-193-032 1 1,340.15 700.00 049-193-033 1 1,340.15 700.00 049-193-034 1 1,340.15 700.00 049-193-035 1 1,340.15 700.00 049-193-036 1 1,340.15 700.00 049-193-037 1 1,340.15 700.00 049-193-038 1 1,340.15 700.00 049-193-039 1 1,340.15 700.00 049-193-040 1 1,340.15 700.00 049-193-041 1 1,340.15 700.00 049-193-042 1 1,340.15 700.00 049-193-043 1 1,340.15 700.00 049-193-044 1 1,340.15 700.00 049-193-045 1 1,340.15 700.00 049-193-046 1 1,340.15 700.00 049-193-047 1 1,340.15 700.00 049-193-048 1 1,340.15 700.00 049-193-049 0 - - Totals 70 $ 93,810.50 $ 49,000.00 Landscaping and Lighting District No. 01 (Apple Valley) Engineer's Report—City of Atascadero Prepared by NBS—Fiscal Year 2012/13 ITEM NUMBER: A- 4 DATE: 05/08/12 r rr r hr r r ''i978 r7 Atascadero City Council Staff Report — Administrative Services Department De Anza Estates Assessment Districts RECOMMENDATIONS: Council: 1. Adopt Draft Resolution A initiating proceedings for the levy and collection of annual assessments for Atascadero Street and Storm Drain Maintenance District No. 03 (De Anza Estates) for fiscal year 2012/2013; and, 2. Adopt Draft Resolution B accepting and preliminarily approving the Engineer's Annual Levy Report regarding the Atascadero Street and Storm Drain Maintenance District No. 03 (De Anza Estates); and, 3. Adopt Draft Resolution C declaring the City's intention to levy and collect annual assessments within Atascadero Street and Storm Drain Maintenance District No. 03 (De Anza Estates) in fiscal year 2012/2013, and to appoint a time and place for the public hearing on these matters; and, 4. Adopt Draft Resolution D initiating proceedings for annual levy of assessments for the Atascadero Landscaping and Lighting Maintenance District No. 03 (De Anza Estates) for fiscal year 2012/2013 pursuant to the provisions of Part 2 of Division 15 of the California Streets and Highways Code; and, 5. Adopt Draft Resolution E for preliminary approval of the Annual Engineer's Levy Report for the Atascadero Landscaping and Lighting Maintenance District No. 03 (De Anza Estates) for fiscal year 2012/2013; and, 6. Adopt Draft Resolution F declaring the City's intention to levy and collect assessments for the Atascadero Landscaping and Lighting Maintenance District No. 03 (De Anza Estates) for fiscal year 2012/2013. REPORT-IN-BRIEF: The City Council formed and began assessing Atascadero Street and Storm Drain Maintenance District No. 03 (De Anza Estates) in 2005. This district was formed to provide funding for future routine maintenance of the streets, storm drains and sidewalks in the De Anza Estates subdivision. The City Council also formed and began assessing Atascadero Landscape and Lighting Maintenance District No. 03 (De Anza Estates) in 2005. This district was formed to ITEM NUMBER: A- 4 DATE: 05/08/12 provide for funding and maintenance of street trees, open space, park area, medians, walkways, paths and other landscape and lighting improvements within the De Anza Estates subdivision. NBS, an independent financial consultant, was hired to prepare the engineer's report for the two districts. The engineer's report and the levies must be approved by Council annually. This is done in a two-step process. Tonight, there are three resolutions for each district (a total of 6 resolutions in all) that must be adopted in order to continue the assessments within the districts. The resolutions adopted tonight will also establish the date and time for the public hearing. The public hearing is tentatively scheduled for June 12, 2012, at 6:00 p.m., at which time the final resolutions will be presented to the Council for passage. The proposed assessments for fiscal year 2012/2013 are less than the Maximum Assessment Rate. In accordance with the formula voters of the district adopted in 2005, the City may increase the Maximum Assessment Rate for inflation by the greater of the Consumer Price Index (CPI) or 3.0%. The Maximum Assessment Rate was increased by 3.0% this year for both districts. The Landscape and Lighting District has a surplus fund balance, so the City staff held a neighborhood meeting to receive input from property owners as to the preference on how to treat the surplus. The property owners in attendance requested an assessment of about 23% of the allowable maximum annual assessments for the Landscaping and Lighting District, and about 95% for the Street and Storm Drain District. Amount Per EBU Amount Per EBU District Maximum Assessment Proposed Assessment Fiscal Year 2012-2013 Fiscal Year 2012-2013 Atascadero Street and Storm Drain Maintenance District No. 03 De Anza Estates- Senior Housing $ 608.92 $ 359.00 Atascadero Street and Storm Drain Maintenance District No. 03 De Anza Estates- Single Family Residential $ 752.82 $ 713.00 Atascadero Landscaping and Lighting District No. 03 De Anza Estates $ 1,079.46 $ 250.00 FISCAL IMPACT: Annual assessments for 2012/2013 will total $40,091 for road/drainage system maintenance and $15,875 for landscape and lighting maintenance. These amounts will be assessed to the owners of parcels in De Anza Estates. The City General Fund will contribute $1,500 for the fiscal year 2012/2013 for half of the maintenance costs of the trails and open space. ITEM NUMBER: A- 4 DATE: 05/08/12 ATTACHMENTS: 1. Draft Resolution A - initiating proceedings for the levy and collection of annual assessments for Atascadero Street and Storm Drain Maintenance District No. 03 (De Anza Estates) for fiscal year 2012/2013 2. Draft Resolution B - accepting and preliminarily approving the Engineer's Annual Levy Report regarding the Atascadero Street and Storm Drain Maintenance District No. 03 (De Anza Estates) 3. Draft Resolution C - declaring the City's intention to levy and collect annual assessments within Atascadero Street and Storm Drain Maintenance District No. 03 (De Anza Estates) in fiscal year 2012/2013, and to appoint a time and place for the public hearing on these matters 4. Engineer's Annual Levy Report- for the levy and collection of fiscal year 2012/2013 assessments for Atascadero Street and Storm Drain Maintenance District No. 03 (De Anza Estates) 5. Draft Resolution D - initiating proceedings for annual levy of assessments for the Atascadero Landscaping and Lighting Maintenance District No. 03 (De Anza Estates) for fiscal year 2012/2013 pursuant to the provisions of Part 2 of Division 15 of the California Streets and Highways Code 6. Draft Resolution E - preliminary approval of the Annual Engineer's Levy Report for Atascadero Landscaping and Lighting Maintenance District No. 03 (De Anza Estates) for fiscal year 2012/2013 7. Draft Resolution F - declaring the City's intention to levy and collect assessments for the Atascadero Landscaping and Lighting Maintenance District No. 03 (De Anza Estates) for fiscal year 2012/2013 8. Engineer's Report- for the levy and collection of fiscal year 2012/2013 assessments for Landscaping and Lighting District No. 03 (De Anza Estates) ITEM NUMBER: A-4 DATE: 05/08/12 Attachment 1 DRAFT RESOLUTION A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ATASCADERO, CALIFORNIA, INITIATING PROCEEDINGS FOR THE LEVY AND COLLECTION OF ANNUAL ASSESSMENTS FOR ATASCADERO STREET AND STORM DRAIN MAINTENANCE DISTRICT NO. 03 (DE ANZA ESTATES) FOR FISCAL YEAR 2012/2013. The City Council of the City of Atascadero (hereafter referred to as "City Council")hereby finds, determines,resolves and orders as follows: 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") formed an assessment district to be designated as Atascadero 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, sidewalks, 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 NBS as the Engineer of Work, for the purpose of assisting with the administration 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-UHC and MIID; NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Atascadero as follows: SECTION 1. The City Council hereby orders the Engineer to prepare and file an Engineer's Annual Levy Report concerning the levy of assessments for properties within the District as specified by Article 4 Section 54716 of the 1982 Act. 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, outlets, catch basins, drainage basins, manholes, and associated appurtenant facilities located within the public street ITEM NUMBER: A-4 DATE: 05/08/12 Attachment 1 right-of-ways and other public easements within the District, and dedicated to the City of Atascadero for such maintenance. SECTION 3. The territory within Atascadero Street and Storm Drain Maintenance District No. 03 (De Anza Estates) consists of lots, parcels and subdivisions of land located in the development known as De Anza Estates Tract 2498. 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: Bob Kelley,Mayor ATTEST: Marcia McClure Torgerson, C.M.C., City Clerk APPROVED AS TO FORM: Brian A. Pierik, City Attorney ITEM NUMBER: A- 4 DATE: 05/08/12 Attachment 2 DRAFT RESOLUTION B RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ATASCADERO, CALIFORNIA, ACCEPTING AND PRELIMINARILY APPROVING THE ENGINEER'S ANNUAL LEVY REPORT REGARDING THE ATASCADERO STREET AND STORM DRAIN MAINTENANCE DISTRICT NO. 03 (DE ANZA ESTATES). The City Council of the City of Atascadero (hereafter referred to as "City Council")hereby finds, determines,resolves and orders as follows: WHEREAS, the City Council has, by previous Resolution, ordered the preparation of an Engineer's Annual Levy Report (hereafter referred to as the "Report") regarding the assessment district to be designated as the Atascadero 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 and 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 as follows: SECTION 1. The preceding recitals are 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. ITEM NUMBER: A- 4 DATE: 05/08/12 Attachment 2 d. The proposed Budget (Costs and Expenses) and the duration and collection of assessments. e. The District Roll containing the Levy for each Assessor Parcel Number within the District for fiscal year 2012/2013. 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 described in the Report is hereby approved on a preliminary basis. 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. 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: Bob Kelley,Mayor ATTEST: Marcia McClure Torgerson, C.M.C., City Clerk APPROVED AS TO FORM: Brian A. Pierik, City Attorney ITEM NUMBER: A- 4 DATE: 05/08/12 Attachment 3 DRAFT RESOLUTION C RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ATASCADERO, CALIFORNIA, DECLARING ITS INTENTION TO LEVY AND COLLECT ANNUAL ASSESSMENTS WITHIN ATASCADERO STREET AND STORM DRAIN MAINTENANCE DISTRICT NO. 03 (DE ANZA ESTATES) IN FISCAL YEAR 2012/2013, AND TO APPOINT A TIME AND PLACE FOR THE PUBLIC HEARING ON THESE MATTERS. The City Council of the City of Atascadero(hereafter referred to as "City Council")hereby finds, determines,resolves and orders as follows: 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 approve 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 for the assessment district designated as Atascadero Street and Storm Drain Maintenance District No. 03 (De Anza Estates) (hereafter referred to as the "District"); 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 for Fiscal Year 2012/2013 (July 1, 2012 and ending June 30, 2013) in accordance with Chapter 1, Article 4 of the 1982 Act and in accordance with the requirements of the California Constitution, Articles MIX and XHID, 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 as follows: 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. 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, outlets, catch basins, ITEM NUMBER: A- 4 DATE: 05/08/12 Attachment 3 drainage basins, manholes, 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 full and complete description of the improvements within the District. SECTION 3. The proposed territory within Atascadero Street and Storm Drain Maintenance District No. 03 (De Anza Estates) consists of lots, parcels and subdivisions of land located in the development known as De Anza Estates Tract 2498. SECTION 4. 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. SECTION 5. Notice is hereby given that a Public Hearing on these matters will be held by the City Council on Tuesday, June 12, 2012 at 6:00 p.m. or as soon thereafter as feasible in the regular meeting chambers of the City Council located at 6907 El Camino Real, 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. At the Public Hearing, interested persons shall be permitted to present written and/or oral testimony. ITEM NUMBER: A- 4 DATE: 05/08/12 Attachment 3 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: Bob Kelley,Mayor ATTEST: Marcia McClure Torgerson, C.M.C., City Clerk APPROVED AS TO FORM: Brian A. Pierik, City Attorney helping communities fund tomorrow City of Atascadero Annual Engineer's Report Street and Storm Drain Maintenance District No. 03 (De Anza Estates) Fiscal Year 2012/13 Main Office 32605 Temecula Parkway, Suite 100 Temecula, CA 92592 Toll free: 800.676.7516 Fax: 951.296.1998 Regional Office 870 Market Street, Suite 1223 San Francisco, CA 94102 Toll free: 800.434.8349 Fax: 415.391.8439 CITY OF ATASCADERO Street and Storm Drain Maintenance District No. 03 (De Anza Estates) 6907 EI Camino Real Atascadero, CA 93422 Phone — (805) 461-5000 Fax — (805) 461-7612 CITY COUNCIL Bob Kelley, Mayor Tom O'Malley, Mayor Pro Tem Brian Sturtevant, Council Member Jerry Clay, Sr., Council Member Roberta Fonzi, Council Member AGENCY STAFF Wade G. McKinney, City Manager James R. Lewis, Assistant City Manager Rachelle Rickard, Administrative Services Director Jeri Rangel, Assistant Administrative Services Director NBS Danielle Wood, Client Services Director Adina Vazquez, Senior Consultant TABLE OF CONTENTS 1. ENGINEER'S LETTER 1-1 2. EXECUTIVE SUMMARY 2-1 3. PLANS AND SPECIFICATIONS 3-1 A. BENEFITING PROPERTIES WITHIN THE DISTRICT.................................3-1 B. FUNDING AUTHORIZED BY THE 1982 ACT...............................................3-1 C. DESCRIPTION OF IMPROVEMENTS AND SERVICES ..............................3-1 4. ESTIMATE OF COSTS 4-1 5. METHOD OF ASSESSMENT 5-1 A. GENERAL ....................................................................................................5-1 B. BENEFIT ANALYSIS....................................................................................5-1 C. ASSESSMENT METHODOLOGY................................................................5-2 D. ASSESSMENT RANGE FORMULA.............................................................5-5 6. ASSESSMENT DIAGRAM 6-1 7. ASSESSMENT ROLL 7-1 Street&Storm Drain District No. 03 (De Anza) Engineer's Report—City of Atascadero Table of Contents Prepared by NBS—Fiscal Year 2012/13 1. ENGINEER'S LETTER WHEREAS, on August 9, 2005 by Resolution No. 2005-071, the City Council of the City of Atascadero (the "City"), State of California, in accordance with and 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"), established the City of Atascadero Street and Storm Drain Maintenance District No. 03 (De Anza Estates) (the "District"); and WHEREAS, on May 8, 2012, the City Council, under the 1982 Act, adopted its Resolution Initiating Proceedings for the Annual Levy of Assessments and Ordering the Preparation of an Engineer's Report for the District; and WHEREAS, the Resolution Initiating Proceedings directed NBS to prepare and file a report describing the general nature, location, and extent of the improvements to be maintained; an estimate of the costs of the maintenance, operations, and servicing of the improvements for the District for the referenced fiscal year; a diagram for the District, showing the area and properties to be assessed; and an assessment of the estimated costs of the administration, maintenance, operations, and servicing the improvements, assessing the net amount upon all assessable lots and/or parcels within the District in proportion to the special benefit received. NOW THEREFORE, the assessments as detailed in this Engineer's Report and as summarized in the table below are made to cover the portion of the estimated costs of maintenance, operation and servicing of the improvements to be paid by the assessable real property within the District in proportion to the special benefit received. The following table summarizes the proposed assessment for Fiscal Year 2012/13: FY 2012/13 Summary of Assessment Description Amount Estimated Annual Costs $6,742 Capital Reserve Collection/ Uses 26,577 Levy Adjustments 6,772 Balance to Levy $40,091 Fiscal Year 2012/13 Maximum Rate—Zone A $608.92 Fiscal Year 2012/13 Proposed Applied Rate—Zone A $574.78 Fiscal Year 2012/13 Maximum Rate—Zone B $752.82 Fiscal Year 2012/13 Proposed Applied Rate—Zone B $712.92 Rates above are per Equivalent Benefit Unit. I, the undersigned, respectfully submit the enclosed Engineer's Report and, to the best of my knowledge, information, and belief, the Engineer's Report, Assessments, and the Assessment Diagram herein have been prepared, computed, and levied in accordance with the assessment methodology adopted, approved, and ordered by the City Council of the City of Atascadero and the 1982 Act. NBS Street&Storm Drain District No03(De Anza)Engineer's Report—City of Atascadero 1-1 Prepared by NBS—Fiscal Year 2012/13 2. EXECUTIVE SUMMARY 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"), proposed 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 the "District"), which includes the lots and parcels of land within the residential subdivision known as De Anza Estates, Tract 2498 within the City limits of the City. This Engineer's Report (hereafter referred to as the "Report") has been prepared in connection with the levy and collection of annual assessments related thereto for fiscal year 2012/2013. The City Council formed the District, and provided for the levy and collection of annual assessments on the County tax rolls to provide ongoing funding for the costs and expenses required to service and maintain the street and storm drain improvements and facilities associated with and resulting from the development of properties within the District. The improvements to be provided by the District and the assessments described herein are made pursuant to the 1982 Act and the substantive and procedural provisions of the California Constitution. This Report describes the District, the improvements, and the proposed assessments to be levied against properties in connection with the special benefits the properties will receive from the maintenance and servicing of the District improvements and facilities. The annual assessments described herein will provide a funding source 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 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 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. 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's formation, the City conducted 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 conducted 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 were opened and tabulated to determine whether majority protest existed (ballots were weighted based on assessment amounts), and by resolution the City Council confirmed the results of the ballot tabulation. The tabulation of the ballots indicated that majority protest did not exist for the proposed assessments and the assessment range formula presented and described herein; therefore, the City Council approved the Report (as submitted or amended), ordered the formation of the District, and approved the levy and collection of assessments. The assessments for fiscal year 2005/2006 were Street&Storm Drain District No. 03(De Anza) Engineer's Report—City of Atascadero 2-1 Prepared by NBS—Fiscal Year 2012/13 submitted to the San Luis Obispo County Auditor/Controller for inclusion on the property tax roll for each parcel. Each subsequent fiscal year, a Report shall be prepared and presented to the City Council describing any changes to the improvements, proposed services, the annual budget or assessments for that fiscal year and the City Council may 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. Street&Storm Drain District No. 03(De Anza) Engineer's Report—City of Atascadero 2-2 Prepared by NBS—Fiscal Year 2012/13 3. PLA NS A ND SPECIFI CA TIONS A. BENEFITING PROPERTIES WITHIN THE DISTRICT The territory within the District consists of the 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 includes twenty-six (26) Single-Family Residential Units and sixty (60) Modified Housing/Senior Housing Units. The 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 EI Camino Real; • North and East of U.S. HWY 101; and, • South and West of the Salinas River. 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. C. DESCRIPTION OF IMPROVEMENTS AND SERVICES The purpose of this District is to fund the activities necessary to maintain and service the local streets and the drainage and flood control systems constructed and installed in connection with development of properties within the residential subdivision known as (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 are not limited to the materials, equipment, labor, and incidental expenses deemed necessary to keep these improvements in satisfactory condition. The maintenance of the improvements and related activities shall be funded entirely or partially through the District assessments. The District improvements and services are generally described as: • Street maintenance that may include but is not limited to the repair and servicing of street surfaces, curbs, gutters, bridges, driveway approaches, sidewalks, barricades, delineation, signage or other facilities within the public street right-of-ways installed in connection with the development of properties in Tract 2498 and that have been dedicated to the City; Street&Storm Drain District No. 03(De Anza) Engineer's Report—City of Atascadero 3-1 Prepared by NBS—Fiscal Year 2012/13 • 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 waste water treatment; • The appurtenant, equipment, materials and service contracts related to the aforementioned improvements and facilities; • Specifically excluded are those improvements or facilities: located on private property or common areas; that may be provided or maintained by an agency other than the City; that may be provided by another assessment or tax levied by the City; or that may be provided and maintained by a Homeowner's Association or similar entity. Detailed maps and descriptions of the location and extent of the specific improvements to be maintained by the District are on file in the Office of Public Works and by reference are made part of this Report. Those portions of the District improvements that may be identified as general benefit or will be funded in whole or in part by other revenue sources as part of the approved development agreements, will not be included as part of the District assessments. The net annual cost to provide and maintain the improvements determined to be of special benefit shall be allocated to each property in proportion to the special benefits received. Street Maintenance The street maintenance program may include, but is not limited to: the repair of potholes, cracks or other failures in the asphalt surface; repair or replacement of curbs, gutters, driveway approaches and sidewalks as required as part of maintaining the streets; repair or installation of street signs, barricades, fencing or other delineation; mechanized sweeping and cleaning of the streets and gutters; slurry sealing, overlays and re- striping of the street surfaces. The specific activities and timing of various street and road maintenance services shall be determined by the Citys 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 EI 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 EI 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 EI 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 driveway approaches and sidewalks 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 Street&Storm Drain District No. 03(De Anza) Engineer's Report—City of Atascadero 3-2 Prepared by NBS—Fiscal Year 2012/13 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 the operational activities and maintenance of the public street and right-of-way improvements, facilities and services that may include, but are not limited to: • Regular street sweeping services necessary to control dirt and debris on street surfaces and gutters; • Annual inspection of street surface and repair of potholes and surface cracks as needed; • Periodic slurry or overly of street surfaces and driveway approaches (typically one or the other once every five years); • Periodic re-striping of traffic lanes, bike lanes, street parking areas, crosswalks and intersections (typically in conjunction with slurry or overly activities); • Graffiti abatement of public improvements within the street right-of-ways that are maintained by the District including but not limited to sandblasting, repainting and repair of fences, walls, barricades, sidewalks and signage as needed; • Annual inspection and periodic repair or replacement of decorative street- pavers as needed; • Annual inspection and minor repairs of curbs, gutters, driveway approaches and sidewalks including partial segment replacements as needed to ensure pedestrian and vehicle safety or the integrity of the street; • Annual inspection and periodic repair or rehabilitation of street signs and traffic control devices; • Annual inspection and repair of barricades, street-fencing, delineation or retaining walls within the street right-of-ways as needed. A portion of the services described above are not performed on an annual basis but rather on a periodic basis, such as slurry sealing or overlaying the asphalt streets, and the funds necessary for these activities are collected in installments as part of the annual assessments. The monies collected each year for these services will be accumulated in a special fund of the District (Reserve Fund or Capital Improvement Fund). The monies accumulated for these activities shall be spent when sufficient funds have been accumulated to perform the services deemed necessary by the City (approximately every five years). This process of accumulating funds (installments) shall continue until such time the District is dissolved; or the City determines that such funding procedures require modification. Changes in the process of accumulating funds that would result in an increase to the annual assessment rate must be presented to the property owners for approval prior to imposing such an increase. Storm Drain and Flood Control Maintenance The storm drain and flood control system associated with the District may include but is not limited to: drainage basins and bio-filters; channel ways; storm drain inlets, catch basins, manholes, outlets; drywells, pumps, filters and pipes. The storm drain system to be maintained primarily involves on-site facilities (within the District boundaries) but may also include off-site improvements such as water treatment equipment, facilities or services mandated or required by Federal, State or County regulations for water pollution control. The annual assessments for this District are intended to support a storm drain and flood control maintenance program that will adequately regulate and control storm water runoff resulting from the development of properties within the District. This maintenance program may include but is not limited to: inspection and documentation of the system; cleaning, servicing or repair of the facilities and equipment; and the partial replacement or rehabilitation of equipment and facilities. The storm drain and flood control system Street&Storm Drain District No. 03(De Anza) Engineer's Report—City of Atascadero 3-3 Prepared by NBS—Fiscal Year 2012/13 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 the operational activities and maintenance of the storm drain and storm water pollution treatment infrastructure, facilities and services that may include, but are not limited to: • Cleaning of storm drain inlets, catch basins, manholes and pipes as needed; • Stencil maintenance and documentation of facilities as required by Federal, State or County regulations; • Cleaning and landscape maintenance of the drainage basins, bio-filter areas or channel ways 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, • The operational costs related to NPDES compliance requirements. A portion of the services described above are not performed on an annual basis but rather on a periodic basis such as minor repairs to the storm drain inlets, catch basins and outlets, and the funds necessary for these activities are collected in installments as part of the annual assessments. The monies collected each year for these services will be accumulated in a special fund of the District (Reserve Fund or Capital Improvement Fund). The monies accumulated for these activities shall be spent as needed to perform the services deemed necessary by the City. This process of accumulating funds (installments) shall continue until such time the District is dissolved; or the City determines that such funding procedures require modification. Changes in the process of accumulating funds that would result in an increase to the annual assessment rate must be presented to the property owners for approval prior to imposing such an increase. Street&Storm Drain District No. 03(De Anza) Engineer's Report—City of Atascadero 3-4 Prepared by NBS—Fiscal Year 2012/13 4. ESTIMATE OF COSTS FY 2012/2013 Zone A Zone B Total BUDGET (Senior Housing) I (SF-Residential) I Assessed DIRECT COSTS Street, Roads&Storm Drain Improvements Drainage Maintenance Services Street Sweeping Services $390 $610 $1,000 Inspection&Operational Services-Roads, Drainage 242 378 620 Inspection &Operational Services-Bridges 403 107 510 Total Annual Direct Costs $1,035 $1,095 $2,130 ADMINISTRATION EXEPNSES City Annual Administration $225 $225 $450 Engineer's Report&Services 1,821 1,749 3,570 County Administration Fee 120 52 172 Public Noticing 210 210 420 Total Annual Administration Costs $2,376 $2,236 $4,612 TOTAL DIRECT&ADMINISTRATION COSTS $3,411 $3,331 $6,742 CAPITAL RESERVE COLLECTIONS/(USES) Collection for Street Surface Activities $5,622.45 $8,274.55 $13,897.00 Collection for Street Re-striping 32 42 74 Collection for Repair Activities: Curbs, Gutters,Approaches&Sidewalks 64 186 250 Collection for Debris Removal - 265 265 Collection for Bridges 9,564 2,432 11,996 Collection for Storm Drain Infrastructure - 95 95 Total Annual Capital Reserve Collections/(Uses) $15,282 $11,295 $26,577 LEVY ADJUSTMENTS Interest Income- Improvement Fund $(1,253.60) $(704.40) $(1,958.00) Interest Income-Operating Reserve Fund 435 677 1,112 Improvement Fund (Use) - - - Operating Reserve Fund Collection Use 4,576 5,266 9,842 Total Levy Adjustments $2,888 $3,884 $6,772 BALANCE TO LEVY $21,580 $18,511 $40,091 DISTRICT STATISTICS Total Parcels 61 28 Parcels Levied 60 26 Total EBU 37.5 26 Levy per EBU $574.78 $712.92 Maximum Levy per EBU $608.92 $752.82 FUND BALANCE INFORMATION Beginning Operating Reserve Balance $27,488.68 $42,994.32 $70,483.00 Operational Reserve Interest 1,200 1,870 3,070 Operational Reserve Collection Use 2,978 3,966 6,944 Ending Operating Reserve Balance $31,667 $48,830 $80,497 Beginning Improvement Fund Balance $66,524.70 $48,668.30 $115,193.00 Improvement Fund Interest - - Improvement Fund Collection Use 15,281 11,296 26,577 Ending Improvement Fund Balance $81,806 $59,964 $141,770 Street&Storm Drain District No. 03(De Anza) Engineer's Report-City of Atascadero 4-1 Prepared by NBS-Fiscal Year 2012/13 5. METHOD OF ASSESSMENT A. GENERAL The 1982 Act permits the establishment of assessment districts by agencies for the purpose of providing for the maintenance, operation and servicing of drainage and flood control improvements as well as streets, roads and appurtenant facilities. The 1982 Act further requires that the cost of these improvements be levied according to benefit rather than assessed value: "The amount of the assessment imposed on any parcel of property shall be related to the benefit to the parcel which will be derived from the provision of the service". Furthermore: "The annual aggregate amount of the assessment shall not exceed the estimated annual cost of providing the service, except that the legislative body may, by resolution, determine that the estimated cost of work authorized ... is greater than can be conveniently raised from a single annual assessment and order that the estimated cost shall be raised by an assessment levied and collected in installments.... The revenue derived from the assessment shall not be used to pay the cost of any service other than the service for which the assessment was levied." The method of apportionment described in this Report for allocation of special benefit assessments utilizes commonly accepted engineering practices in compliance with the provisions of the 1982 Act and the California Constitution. The formulas used for calculating assessments reflects the composition of parcels within the District and the improvements and services provided, to fairly apportion the costs based on the special benefits to each parcel. B. BENEFIT ANALYSIS Each of the proposed improvements and services, and the associated costs and assessments have been carefully reviewed, identified and allocated based on special benefit pursuant to the provisions of the 1982 Act and the California Constitution. The street and storm drain improvements associated with this District were necessary and essential requirements for the orderly development of the properties within the District to their full potential, consistent with the development plans and applicable portions of the City General Plan. As such the ongoing operation, servicing and maintenance of those improvements would otherwise be the direct financial obligation of each individual property owner. Since each parcel to be assessed within the District could not have been developed in the absence of these improvements and facilities, each parcel has a direct investment in the proper maintenance of the improvements that is over and above any general benefits that may be conferred by such improvements and services. The ongoing maintenance and servicing of the District improvements is an integral part of the appearance, use and preservation of the properties within the District and such services to be funded by annual assessments confer a particular and distinct special benefit to those parcels. The proper maintenance of streets and appurtenant facilities allows individual parcels to be used to their fullest extent by ensuring the safe and efficient movement of people and goods to and from the benefiting properties Likewise, the maintenance and servicing of the storm drain system ensures proper water flow and control of excess water during periods of rain, which is essential to preservation and protection of private property. Together the maintenance and servicing of the streets and storm drain system contributes to a specific enhancement of each of the parcels within the District and the absence of adequate maintenance and servicing of the District improvements could eventually have a negative impact on properties within the District. Street&Storm Drain District No. 03(De Anza) Engineer's Report—City of Atascadero 5-1 Prepared by NBS—Fiscal Year 2012/13 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 The 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. 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 benefit and shall proportionately share in the costs associated with maintaining and servicing the Upper Bridge Crossing, EI 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, 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 Street&Storm Drain District No. 03(De Anza) Engineer's Report–City of Atascadero 5-2 Prepared by NBS–Fiscal Year 2012/13 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, the single-family residential properties within Tract 2498 benefit and shall proportionately share in the costs associated with maintaining and servicing the Upper Bridge Crossing and EI Camino Real. In addition, the overall development of these particular properties required the construction and installation of 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. Equivalent Benefit Units: To assess benefits equitably it is necessary to relate each property's proportional special benefits to the special benefits of the other properties within the District. The method of apportionment established for most districts formed under the 1982 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 the other land uses are converted to a weighted EBU based on an assessment formula that equates the property's specific development status, type of development (land use), and size of the property, as compared to a single-family home site. Although the Equivalent Benefit Unit method of apportioning special benefit is most commonly used and applied to districts that have a wide range of land use classifications (residential and non-residential use), this District is comprised of only residential properties and the following apportionment analysis of special benefit addresses only residential land uses. Not all land use types described in the following are necessarily applicable to the development of properties within this District, but are presented for comparison purposes to support the proportional special benefit applied to those land use types within the District. EBU Application by Land Use: Single-family Residential —This land use is defined as a fully subdivided residential home site with or without a structure. This land use is assessed 1.0 EBU per lot or parcel. This is the base value that the other properties are compared and weighted against(i.e. Equivalent Benefit Unit"EBU"). Multi-family Residential —This land use is defined as a fully subdivided residential parcel that has more than one residential unit developed on the property. (This land use typically includes apartments, duplexes, triplex etc., but does not generally include condominiums, town-homes or mobilehome parks). Based on average population densities and size of the structure as compared to a typical single-family residential unit, multi-family residential parcels shall be proportionately assessed for the parcel's total number of residential units utilizing a sliding benefit scale. Although multi-family properties typically receive similar benefits to that of a single-family residential, it would not be reasonable to conclude that on a per unit basis, the benefits are equal. Studies have consistently shown that the average multi-family unit impacts infrastructure approximately 75% as much as a single-family residence (Sample Sources: Institute of Transportation Engineers Informational Report Trip Generation, Fifth Edition; Metcalf and Eddy, Wastewater Engineering Treatment, Disposal, Reuse, Third Edition). These various studies indicate that most public improvements and infrastructure are utilized and impacted at reduced levels by multi- family residential units and a similar reduction in proportional benefit is appropriate. Furthermore, it is also reasonable to conclude that as the density(number of units) increases, the proportional benefit per unit tends to decline because the unit size and people per unit usually decreases. Based on these considerations and the improvements provided by this District, an appropriate allocation of special benefit for multi-family residential properties as compared to a single- family residential property 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 the remaining units. Street&Storm Drain District No. 03(De Anza) Engineer's Report–City of Atascadero 5-3 Prepared by NBS–Fiscal Year 2012/13 Condominium/Town-home Units — Condominiums and town-homes tend to share attributes of both single-family residential and multi-family residential properties and for this reason are identified as a separate land use classification. Like most single-family residential properties, these properties are not usually considered rental property and generally, the County assigns each unit a separate APN or assessment number. However, condominiums and town-homes often have similarities to multi-family residential properties in that they are generally zoned medium to high density and in some cases may involve multiple units on a single APN. In consideration of these factors it has been determined that an appropriate allocation of special benefit for condominiums, town-homes and similar residential properties is best represented by an assignment of 0.75 EBU per unit regardless of whether each unit is assigned an individual APN or there are multiple units assigned to an APN. (There is no adjustment for parcels with more than five units). Planned-Residential Development — This land use is defined as any property for which a tentative or final tract map has been filed and approved (a specific number of residential lots and units has been identified) and the property is expected to be subdivided within the fiscal year or is part of the overall improvement and development plan for the District. This land use classification often times involves more than a single parcel (e.g. the approved tract map encompasses more than a single APN). Each parcel that is part of the approved tract map shall be assessed proportionately for the proposed or estimated residential type and units to be developed on that parcel as part of the approved tract map. Accordingly, each parcel is assigned an appropriate number of benefit units that reflects the development of that property at build-out. (The EBU assigned to each parcel shall represent the combination of single-family, condominium, multi-family units to be developed). Vacant Residential — This land use is defined as property currently zoned for residential development, but a tentative or final tract map for the property has not yet been approved. Based upon the opinions of professional appraisers who appraise market property values for real estate in California, the land value portion of a property typically ranges from 20 to 30 percent of the total value of a developed residential property (the average is about 25 percent). Although the assessed value of an individual property is not 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 0.0 EBU. This land use classification may include but is not limited to: • Lots or parcels identified as public streets and other roadways (typically not assigned an APN by the County); • Dedicated public easements including open space areas, utility rights-of- way, greenbelts, parkways, parks or other publicly owned properties that are part of the District improvements or may provide other benefits to private properties within the District.; • Private properties that cannot be developed independently from an adjacent property, such as common areas, sliver parcels or bifurcated lots or properties with very restrictive development use; These types of parcels are considered to receive little or no benefit from the improvements and are therefore exempted from assessment, but shall be reviewed annually by the assessment engineer to confirm the parcels current development status. Government owned properties or public properties are not necessarily exempt properties and shall be subject to special benefit assessment unless it qualifies for an exempt status. Street&Storm Drain District No. 03(De Anza) Engineer's Report–City of Atascadero 5-4 Prepared by NBS–Fiscal Year 2012/13 Special Cases — In many districts where multiple land use classifications are involved, there are 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. The following table provides a summary of land use classifications and the Equivalent Benefit Unit calculations previously outlined. Equivalent Benefit Property Type Units Multiplier Single-family Residential 1.00 Per Unit/Lot/Parcel 0.75 Per Unit for the First 50 Units Multi-family Residential 0.50 Per Unit for Units 51-100 0.25 Per Unit for all Remaining Units Condominium/Townhome Units 0.75 Per Unit 1.00 Per Planned SF Residential Lot 0.75 Per Planned Condominium Planned Residential Development 0.75 Per Unit for the First 50 Units 0.50 Per Unit for Units 51-100 0.25 Per Unit for all Remaining Units Vacant Residential Land 1.00 Per Acre Exempt Parcels 0.00 Per Parcel The following formula is used to calculate each parcel's EBU (proportional benefit). Parcel Type EBU x Acres or Units = Parcel EBU The total number of Equivalent Benefit Units (EBU's) is the sum of the 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 the parcels benefiting from the improvements. This Rate is then applied back to each parcel's individual EBU to determine the parcel's proportionate benefit and assessment obligation for the improvements. Total Balance to Levy/Total EBU = Levy per EBU Levy per EBU x Parcel EBU = Parcel Levy Amount D. ASSESSMENT RANGE FORMULA Any new or increased assessment requires certain noticing and meeting requirements by law. Prior to the passage of Proposition 218 (California Constitution Articles XIIIC and XIIID), legislative changes in the Brown Act defined a "new or increased assessment" to exclude certain conditions. These conditions included "any assessment that does not exceed an assessment formula or range of assessments previously adopted by the agency or approved 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 Street&Storm Drain District No. 03 (De Anza) Engineer's Report-City of Atascadero 5-5 Prepared by NBS-Fiscal Year 2012/13 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 included 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 the 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 from February to February. Beginning with 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, reductions in the proportional special benefit assigned to a land use classifications is permitted. Changes in land use or size of an individual property resulting in an assessment increase, is not considered an increased assessment. To impose a new or increased assessment other than the annual inflationary adjustment provided by the preceding Assessment Range Formula, the City must comply with the provisions of the California Constitution Article XIIID Section 4c, that requires a public 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. Street&Storm Drain District No. 03(De Anza) Engineer's Report—City of Atascadero 5-6 Prepared by NBS—Fiscal Year 2012/13 6. ASSESSMENT DIA GRA M The parcels within the Street and Storm Drain Maintenance District No. 03 (De Anza Estates) consist of the lots, parcels and subdivisions of land located in the 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 the parcels of land within the proposed District, as the same existed at the time the District was formed. The combination of this map and the Assessment Roll contained in this Report constitute the District Assessment Diagram. Street&Storm Drain District No. 03(De Anza) Engineer's Report—City of Atascadero 6-1 Prepared by NBS—Fiscal Year 2012/13 ASSESSMENT DIAGRAM FOR STREET AND STORM DRAIN MAINTENANCE DISTRICT NO.3(SE ANZA ESTATES) CITY OF ATASCADERO,COUNTY OF SAN LUIS OBISPO,STATE OF CALIFORNIA SHEET 1 OF 1 PROPOSED BOUNDARIES MAP OF STREET AND STORM DRAIN MAINTENANCE DISTRICT NO. 03 (DE ANZA ESTATES) CITY OF ATASCADERO rim IN THE OMQE CF TRE CITY CLERX THIS_DAY OF 20G& _- COUNTY OF SAN LUIS OBISPO STATE OF CALIFORNIA I HEREBY CERTFY THAT THIS JAv SHI THE 90UWAINES OF MEET AND S70M DRAW WAINTENANCE DISTRICT NO.03(DE AMA ESTATES).CITY OF ATASCADERD.COUNTY OF SAN LLIS OBISPO,STATE OF CALFO V.WAS APPR014D BY THE CITY COUNCIL OF THE CITY OF ATASCADERO AT A REGULAR NFETINO r �L' ,i',• THEWW.HED ON THE DAY OF 2006,BY ITS RESCONTI014 Na OTY CLERX 1 CITY OF ATASCADEM 11 11 t9;s X SITE B r � 3 � O B O 'P- I�1,�ryA4rudera< = O ,� � � Riy� CINITY MAP 0 ASSESSI TRACT MAP S EF.NO, PA RD.. NQ R NP�NO. ND. N 1 D40-044-027 24" 11 049-044-024 2496 2 D40-044-IOU 2496 12 049-044-033 2456j 0 4 5 2486 B 24" 1107 2466 2486 B 2496 2446 6 D49-044-003 2496 16 0411 2496 0 9 040-044-004 2496 19 0481 2496 10 D49-044--023 1 2498 1 20 0491 2496 11 0491 2498 22 049-044-014 2498 23 049-D44-017 2496 'SAO 24 049-6"-010 249-6 2466 26 048-644-018 2496 27 0481 2A 049-D44-020 2496 29 619-D44-021 2496 30 619-D44-0II 2498 31 049-0"-o26 2496 ]2 049-6"-o2E z498 M u niFinancial � 6 z LEGEND �+ PROPOSED BOUNDARY SANTA CRUZ RD. ,�tP�a• ,so' 75' a ,sc 1O YAP REFERENCE N'JNBER CjP JAI. SCALE® (Q6-08w) JULY 2= 2011/2012 Storm Drain Maintenance District No. 3 Page 21 of 24 7. ASSESSMENT ROL L 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: Street&Storm Drain District No. 03(De Anza) Engineer's Report—City of Atascadero 7-1 Prepared by NBS—Fiscal Year 2012/13 CITY OF ATASCADERO Street and Storm Drain Maintenance District No. 03 (De Anza Estates) Fiscal Year 2012/2013 Assessment Roll Assessor's Benefit Equivalent Maximum Proposed Parcel Number Zone Benefit Units Assessment Assessment(') 049-043-003 B 0 $ - $ - 049-043-004 B 0 - - 049-044-002 B 1 752.82 712.92 049-044-003 B 1 752.82 712.92 049-044-004 B 1 752.82 712.92 049-044-005 B 1 752.82 712.92 049-044-006 B 1 752.82 712.92 049-044-007 B 1 752.82 712.92 049-044-008 B 1 752.82 712.92 049-044-009 B 1 752.82 712.92 049-044-010 B 1 752.82 712.92 049-044-011 B 1 752.82 712.92 049-044-012 B 1 752.82 712.92 049-044-013 B 1 752.82 712.92 049-044-014 B 1 752.82 712.92 049-044-015 B 1 752.82 712.92 049-044-016 B 1 752.82 712.92 049-044-017 B 1 752.82 712.92 049-044-018 B 1 752.82 712.92 049-044-019 B 1 752.82 712.92 049-044-020 B 1 752.82 712.92 049-044-021 B 1 752.82 712.92 049-044-022 B 1 752.82 712.92 049-044-023 B 1 752.82 712.92 049-044-024 B 1 752.82 712.92 049-044-025 B 1 752.82 712.92 049-044-026 B 1 752.82 712.92 049-044-033 B 1 752.82 712.92 049-046-001 A 0 - - 049-046-002 A 0.625 380.57 359.22 049-046-003 A 0.625 380.57 359.22 049-046-004 A 0.625 380.57 359.22 049-046-005 A 0.625 380.57 359.22 049-046-006 A 0.625 380.57 359.22 049-046-007 A 0.625 380.57 359.22 049-046-008 A 0.625 380.57 359.22 049-046-009 A 0.625 380.57 359.22 049-046-010 A 0.625 380.57 359.22 049-046-011 A 0.625 380.57 359.22 049-046-012 A 0.625 380.57 359.22 049-046-013 A 0.625 380.57 359.22 049-046-014 A 0.625 380.57 359.22 049-046-015 A 0.625 380.57 359.22 Street and Storm Drain Maintenance District No. 03 (De Anza Estates) Engineer's Report-City of Atascadero Prepared by NBS-Fiscal Year 2012/13 Assessor's Benefit Equivalent Maximum Proposed Parcel Number Zone Benefit Units Assessment Assessment(') 049-046-016 A 0.625 380.57 359.22 049-046-017 A 0.625 380.57 359.22 049-046-018 A 0.625 380.57 359.22 049-046-019 A 0.625 380.57 359.22 049-046-020 A 0.625 380.57 359.22 049-046-021 A 0.625 380.57 359.22 049-046-022 A 0.625 380.57 359.22 049-046-023 A 0.625 380.57 359.22 049-046-024 A 0.625 380.57 359.22 049-046-025 A 0.625 380.57 359.22 049-046-026 A 0.625 380.57 359.22 049-046-027 A 0.625 380.57 359.22 049-046-028 A 0.625 380.57 359.22 049-046-029 A 0.625 380.57 359.22 049-046-030 A 0.625 380.57 359.22 049-046-031 A 0.625 380.57 359.22 049-046-032 A 0.625 380.57 359.22 049-046-033 A 0.625 380.57 359.22 049-046-034 A 0.625 380.57 359.22 049-046-035 A 0.625 380.57 359.22 049-046-036 A 0.625 380.57 359.22 049-046-037 A 0.625 380.57 359.22 049-046-038 A 0.625 380.57 359.22 049-046-039 A 0.625 380.57 359.22 049-046-040 A 0.625 380.57 359.22 049-046-041 A 0.625 380.57 359.22 049-046-042 A 0.625 380.57 359.22 049-046-043 A 0.625 380.57 359.22 049-046-044 A 0.625 380.57 359.22 049-046-045 A 0.625 380.57 359.22 049-046-046 A 0.625 380.57 359.22 049-046-047 A 0.625 380.57 359.22 049-046-048 A 0.625 380.57 359.22 049-046-049 A 0.625 380.57 359.22 049-046-050 A 0.625 380.57 359.22 049-046-051 A 0.625 380.57 359.22 049-046-052 A 0.625 380.57 359.22 049-046-053 A 0.625 380.57 359.22 049-046-054 A 0.625 380.57 359.22 049-046-055 A 0.625 380.57 359.22 049-046-056 A 0.625 380.57 359.22 049-046-057 A 0.625 380.57 359.22 049-046-058 A 0.625 380.57 359.22 049-046-059 A 0.625 380.57 359.22 049-046-060 A 0.625 380.57 359.22 049-046-061 A 0.625 380.57 359.22 Totals 63.5 $ 42,407.52 $ 40,089.12 (1)Slight variance in charge or total budget are due to rounding for placement on the tax rolls. Street and Storm Drain Maintenance District No. 03 (De Anza Estates) Engineer's Report-City of Atascadero Prepared by NBS-Fiscal Year 2012/13 ITEM NUMBER: A- 4 DATE: 05/08/12 Attachment 5 DRAFT RESOLUTION D RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ATASCADERO, CALIFORNIA, INITIATING PROCEEDINGS FOR ANNUAL LEVY OF ASSESSMENTS FOR THE ATASCADERO LANDSCAPING AND LIGHTING MAINTENANCE DISTRICT NO. 3 (DE ANZA ESTATES) FOR FISCAL YEAR 2012/2013 PURSUANT TO THE PROVISIONS OF PART 2 OF DIVISION 15 OF THE CALIFORNIA STREETS AND HIGHWAYS CODE. The City Council of the City of Atascadero (hereafter referred to as "City Council") hereby finds, determines,resolves and orders as follows: WHEREAS, the City Council has, by previous Resolutions, formed the Atascadero Landscaping and Lighting Maintenance District No. 3 (hereafter referred to as "District") pursuant to the provisions of the Landscaping and Lighting Act of 1972, Part 2 of Division 15 of the Streets and Highways Code of California, beginning with Section 22500 (hereafter referred to as the "Act") that provides for levy and collection of assessments by the County of San Luis Obispo for the City of Atascadero to pay the maintenance and services of lighting facilities, landscaping, and appurtenant facilities and operations related thereto; and, WHEREAS, the District and the associated assessments are in compliance with the provisions of California Constitution Article XIIID; and, WHEREAS, the City Council has retained NBS for the purpose of assisting with the Annual Levy of the District and to prepare and file a report with the City Clerk in accordance with the Act; NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Atascadero as follows: SECTION 1. Engineer's Annual Levy Report: The City Council hereby orders NBS to prepare the Engineer's Annual Levy Report concerning the levy of assessments for the District in accordance with Chapter 3, Section 22622 of the Act. SECTION 2. Proposed Improvements and Any Substantial Changes in Existing Improvements: The improvements within the District 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 Act that were installed as part of property development and associated with the District. Said improvements may include, but are not limited to the materials, equipment, utilities, labor, appurtenant facilities and ITEM NUMBER: A- 4 DATE: 05/08/12 Attachment 5 expenses necessary for the ongoing maintenance and operation of public street lighting as well as landscaped parkways, medians, slopes, trails, park areas, drainage basins, open space areas and other designated easements or right-of-ways constructed and installed as part of the development plans and agreements approved for the development of each lot and parcel within the District. The Engineer's Annual Levy Report describes any new improvements or substantial changes in existing improvements. 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: Bob Kelley,Mayor ATTEST: Marcia McClure Torgerson, C.M.C., City Clerk APPROVED AS TO FORM: Brian A. Pierik, City Attorney ITEM NUMBER: A- 4 DATE: 05/08/12 Attachment 6 DRAFT RESOLUTION E RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ATASCADERO, CALIFORNIA, FOR PRELIMINARY APPROVAL OF THE ENGINEER'S ANNUAL LEVY REPORT FOR THE ATASCADERO LANDSCAPING AND LIGHTING MAINTENANCE DISTRICT NO. 3 (DE ANZA ESTATES) FOR FISCAL YEAR 2012/2013. The City Council of the City of Atascadero (hereafter referred to as "City Council") does resolve as follows: WHEREAS, the City Council has, by previous Resolutions, ordered the preparation of an Engineer's Annual Levy Report (hereafter referred to as the "Report") for the district known and designated as the Atascadero Landscaping and Lighting Maintenance District No. 3 (hereafter referred to as the "District") pursuant to the provisions of the Landscaping and Lighting Act of 1972, Part 2 of Division of the Streets and Highways Code of California, beginning with Section 22500 (hereafter referred to as the "Act"); and, WHEREAS, the District and the associated assessments are in compliance with the provisions of California Constitution Article XIIID; and, WHEREAS, the City Council has now been presented with the Report as required by Chapter 1, Article 4, Section 22566 of said Act; and, WHEREAS, the City Council has carefully examined and reviewed the Report as presented and is preliminarily satisfied with the Report, each of the budget items and documents as set forth therein and is satisfied on a preliminary basis that the proposed assessments have been spread in accordance with the benefits received from the improvements, operation, maintenance, and services to be performed within each benefit zone as set forth in said Report; NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Atascadero as follows: SECTION 1. The above recitals are true and correct. SECTION 2. That the presented Report consists of the following: a. A Description of the Improvements b. The Annual Budget(Costs and Expenses of Services, Operation, and Maintenance) c. The Method of Apportionment that details the method of calculating each parcel's proportional special benefits and annual assessment. d. The District Roll containing the proposed assessment for each parcel within the District for Fiscal Year 2012/2013. ITEM NUMBER: A- 4 DATE: 05/08/12 Attachment 6 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. That 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. 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: Bob Kelley,Mayor ATTEST: Marcia McClure Torgerson, C.M.C., City Clerk APPROVED AS TO FORM: Brian A. Pierik, City Attorney ITEM NUMBER: A- 4 DATE: 05/08/12 Attachment 7 DRAFT RESOLUTION F RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ATASCADERO, CALIFORNIA, DECLARING ITS INTENTION TO LEVY AND COLLECT ASSESSMENTS FOR THE ATASCADERO LANDSCAPING AND LIGHTING MAINTENANCE DISTRICT NO. 03 (DE ANZA ESTATES) FOR FISCAL YEAR 2012/2013. The City Council of the City of Atascadero (hereafter referred to as "City Council") does resolve as follows: WHEREAS, The City Council has by previous Resolution initiated proceedings for fiscal year 2012/2013 regarding the levy and collection of assessments for the Atascadero Landscaping and Lighting District No. 3 (hereafter referred to as the "District"). Pursuant to the provisions of the Landscaping and Lighting Act of 1972, Part 2, Division 15 of the California Streets and Highways Code (commencing with section 22500) (hereafter referred to as the "Act"), assessments for the District shall be levied and collected by the County of San Luis Obispo for the City of Atascadero to pay the maintenance and services of the improvements and facilities related thereto; and, WHEREAS, the proposed District assessments for fiscal year 2012/2013 are less than or equal to the maximum assessments previously approved in accordance with the requirements of the California Constitution,Article XHID; and, WHEREAS, there has now been presented to this City Council an Engineer's Annual Levy Report (hereafter referred to as the "Engineer's Report"), and said Engineer's Report has been filed with the City Clerk in accordance with the Act; and, WHEREAS, the City Council has examined and reviewed the Engineer's Report as presented and is satisfied with the Report, each of the budget items and documents as set forth therein and is satisfied that the proposed assessments contained therein, have been spread in accordance with the benefits received from the improvements, operation, 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 as follows: SECTION 1. The above recitals are true and correct. SECTION 2. The City Council hereby declares its intention to seek the annual levy and collection of assessments within the District pursuant to the Act, over and including the lands, lots and parcels within the District boundary. The City Council further declares its intention to levy and collect assessments on such land to pay the annual costs and expenses of the improvements and services described in Section 4 of this Resolution, for fiscal year 2012/2013. ITEM NUMBER: A- 4 DATE: 05/08/12 Attachment 7 SECTION 3. The boundaries of the District are described in the Engineer's Report and are consistent with the boundary established and described in the original formation documents, on file with the City Clerk, and incorporated herein by reference. The District is within the boundaries of the City of Atascadero, within the County of San Luis Obispo, State of California and includes the territory known as De Anza Estates and referred to as the "Atascadero Landscaping and Lighting District No. 03". SECTION 4. The improvements within the District include the ongoing maintenance, operation and servicing of local landscaping and street lighting improvements established or installed in connection with development of properties within the District. These improvements generally include, but are not limited to the materials, equipment, utilities, labor, appurtenant facilities and expenses necessary for the ongoing maintenance and operation of public street lighting as well as landscaped parkways, medians, slopes, trails, park areas, drainage basins, open space areas and other designated easements or right-of-ways constructed and installed as part of the development plans and agreements approved for the development of each lot and parcel within the District. SECTION 5. The proposed assessments for fiscal year 2012/2013, as outlined in the Engineer's Report, do not exceed the maximum assessment approved by the property owners through a property owner balloting proceeding conducted in 2005. As such, the proposed assessments do not constitute an increased assessment and do not require additional property owner approval in accordance with the requirements of the California Constitution,Article XIIID. SECTION 6. The City Council hereby declares its intention to conduct a Public Hearing concerning the District and the levy of assessments in accordance with Chapter 3, Section 22626 of the Act. SECTION 7. Notice is hereby given that a Public Hearing on these matters will be held by the City Council on Tuesday, June 12, 2012, at 6:00 p.m., at the City Council Chambers, 6907 El Camino Real, Atascadero, California or as soon thereafter as feasible. SECTION 8. The City Council hereby authorizes and directs the City Clerk to give notice of the time and place of the Public Hearing to all property owners within the District pursuant to Sections 22626, 22552 and 22553 of the Act and 6061 of the Government Code. The City Clerk shall give notice to all property owners by: causing notice of the public hearing to be published in the local newspaper one time at least 10 days prior to the Public Hearing; and,posting a copy of this resolution on the official bulletin board(s) customarily used for posting such notices. ITEM NUMBER: A- 4 DATE: 05/08/12 Attachment 7 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: Bob Kelley,Mayor ATTEST: Marcia McClure Torgerson, C.M.C., City Clerk APPROVED AS TO FORM: Brian A. Pierik, City Attorney helping communities fund tomorrow City of Atascadero Annual Engineer's Report Landscaping and Lighting District No. 03 (De Anza Estates) Fiscal Year 2012/13 Main Office 32605 Temecula Parkway, Suite 100 Temecula, CA 92592 Toll free: 800.676.7516 Fax: 951.296.1998 Regional Office 870 Market Street, Suite 1223 San Francisco, CA 94102 Toll free: 800.434.8349 Fax: 415.391.8439 CITY OF ATASCADERO Landscaping & Lighting District No. 03 (De Anza Estates) 6907 EI Camino Real Atascadero, CA 93422 Phone — (805) 461-5000 Fax — (805) 461-7612 CITY COUNCIL Bob Kelley, Mayor Tom O'Malley, Mayor Pro Tem Brian Sturtevant, Council Member Jerry Clay, Sr., Council Member Roberta Fonzi, Council Member AGENCY STAFF Wade G. McKinney, City Manager James R. Lewis, Assistant City Manager Rachelle Rickard, Administrative Services Director Jeri Rangel, Assistant Administrative Services Director NBS Danielle Wood, Client Services Director Adina Vazquez, Senior Consultant TABLE OF CONTENTS 1. ENGINEER'S LETTER 1-1 2. EXECUTIVE SUMMARY 2-1 3. PLANS AND SPECIFICATIONS 3-1 A. DESCRIPTION OF THE DISTRICT.............................................................. 3-1 B. IMPROVEMENTS AND SERVICES AUTHORIZED BY THE 1972 ACT ...... 3-1 C. DESCRIPTION OF IMPROVEMENTS AND SERVICES.............................. 3-2 4. ESTIMATE OF COSTS 4-1 5. METHOD OF ASSESSMENT 5-1 A. GENERAL.................................................................................................... 5-1 B. BENEFIT ANALYSIS.................................................................................... 5-1 C. ASSESSMENT METHODOLOGY................................................................ 5-2 D. ASSESSMENT RANGE FORMULA............................................................. 5-6 6. ASSESSMENT DIAGRAM 6-1 7. ASSESSMENT ROLL 7-1 Landscaping &Lighting District No. 03 (De Anza Estates) Engineer's Report—City of Atascadero Table of Contents Prepared by NBS—Fiscal Year 2012/13 1. ENGINEER'S LETTER WHEREAS, on August 9, 2005 by Resolution No. 2005-074, the City Council of the City of Atascadero (the "City"), State of California, in accordance with and pursuant to the Landscape and Lighting Act of 1972, Part 2, Division 15 of the California Streets and Highways Code (commencing with Section 22500 (the 1972 Act")established the City of Atascadero Landscaping and Lighting District No. 03 De Anza Estates (the "District"); and WHEREAS, on May 8, 2012, the City Council, under the 1972 Act, adopted its Resolution Initiating Proceedings for the Annual Levy of Assessments and Ordering the Preparation of an Engineer's Report for the District; and WHEREAS, the Resolution Initiating Proceedings directed NBS to prepare and file a report describing the general nature, location, and extent of the improvements to be maintained; an estimate of the costs of the maintenance, operations, and servicing of the improvements for the District for the referenced fiscal year; a diagram for the District, showing the area and properties to be assessed; and an assessment of the estimated costs of the administration, maintenance, operations, and servicing the improvements, assessing the net amount upon all assessable lots and/or parcels within the District in proportion to the special benefit received. NOW THEREFORE, the assessments as detailed in this Engineer's Report and as summarized in the table below are made to cover the portion of the estimated costs of maintenance, operation and servicing of the improvements to be paid by the assessable real property within the District in proportion to the special benefit received. The following table summarizes the proposed assessment for Fiscal Year 2012/13: FY 2012/13 Budget Summary 2012/13 Total Proposed Total Costs Not Proposed Benefit Maximum Rate Description Costs Assessed Assessment Units Rate Per BU Annual Maintenance $24,340 $1,498 $22,842 Administration 6,152 0 6,152 Levy Adjustments 14,617 1,498 13,877 Total 1 $15,870 $0 $15,870 63.5 $1,079.46 $250.00 I, the undersigned, respectfully submit the enclosed Engineer's Report and, to the best of my knowledge, information, and belief, the Engineer's Report, Assessments, and the Assessment Diagram herein have been prepared, computed, and levied in accordance with the assessment methodology adopted, approved, and ordered by the City Council of the City of Atascadero and the 1972 Act. NBS Landscaping & Lighting District No. 03 (De Anza Estates)Engineer's Report—City of Atascadero 1-1 Prepared by NBS—Fiscal Year 2012/13 2. EXECUTIVE SUMMARY Pursuant to the provisions of the Landscaping 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 "Article XIIID"), the City Council of the City of Atascadero, County of San Luis Obispo, State of California (hereafter referred to as "City"), executed 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 the "District"), which includes the lots and parcels of land within the residential subdivision known as De Anza Estates, Tract 2498 within the City limits of the City. This Engineer's Report (hereafter referred to as the "Report") has been prepared in connection with the levy and collection of annual assessments related thereto for fiscal year 2012/2013, as required pursuant to Chapter 1, Article 4 of the 1972 Act. The City Council formed the District, and provided for the levy and collection of 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 Article XIIID. This Report describes the District, the improvements, and the proposed assessments to be levied against properties in connection with the special benefits the properties will receive from the maintenance and servicing of the District improvements. The annual assessments will provide a funding source 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 boundaries of the District, 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. 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 the District formation, the City of Atascadero conducted 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 conducted a noticed public hearing on August 9, 2005 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 were opened and tabulated to determine whether majority protest existed (ballots were weighted based on assessment amounts), and by resolution the City Council confirmed the results of the ballot tabulation. Tabulation of the ballots indicated that majority protest did not exist for the proposed assessments and the assessment range formula presented and described herein, the City Council approved the Report (as submitted or amended), ordered the formation of the District, and approved the levy and collection of assessments. Landscaping & Lighting District No. 03 (De Anza Estates)Engineer's Report—City of Atascadero 2-1 Prepared by NBS—Fiscal Year 2012/13 The assessments for fiscal year 2005/2006 were 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. Landscaping & Lighting District No. 03 (De Anza Estates)Engineer's Report—City of Atascadero 2-2 Prepared by NBS—Fiscal Year 2012/13 3. PLA NS A ND SPECIFI CA TIONS A. DESCRIPTION OF THE DISTRICT The territory within the District consists of the 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 EI Camino Real; • North and East of U.S. HWY 101; and, • South and West of the Salinas River. B. IMPROVEMENTS AND SERVICES AUTHORIZED BY THE 1972 ACT As generally defined by the 1972 Act 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: 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 Landscaping & Lighting District No. 03 (De Anza Estates)Engineer's Report—City of Atascadero 3-1 Prepared by NBS—Fiscal Year 2012/13 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. C. DESCRIPTION OF IMPROVEMENTS AND SERVICES The purpose of this District is to ensure the ongoing maintenance, operation and servicing of local landscaping and street lighting improvements established or installed in connection with development of properties within the District. The improvements may consist of all or a portion of the public landscaped areas, street lighting and appurtenant facilities within and adjacent to the District (Tract 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 public street lighting as well as landscaped parkways, medians, slopes, trails, park areas, drainage basins, open space areas and other designated easements or right-of-ways constructed and installed as part of the development plans and agreements approved for the development of each lot and parcel within the District. The improvements to be maintained and funded entirely or partially through the District assessments are generally described as: • Streetscape landscaping including street trees located on the perimeter of the development and interior streets of Tract 2498 that are within the public right-of-ways or easements and dedicated to the City for maintenance; • Open space areas and fuel modification areas within or adjacent to the District boundaries; • Park areas, recreational equipment, trails and landscaped drainage facilities developed and constructed as part of developing properties within Tract 2498; • Public lighting facilities including street lighting, safety lighting and ornamental lighting installed as part of the residential development or landscaped improvement areas; • Appurtenant facilities, equipment, materials and utilities related to the aforementioned improvements; • Specifically not included as District improvements are those improvements located on private property, improvements and facilities that may be provided or maintained by an agency other than the City; improvements and facilities that may be provide by another assessment or tax levied by the City or any improvement provided and maintained by a Homeowner's Association or similar entity. Detailed maps and descriptions of the location and extent of the specific improvements to be maintained by the District are on file in the Office of Public Works and by reference are made part of this Report. Those portions of the District improvements that may be identified as general benefit or will be funded in whole or in part by other revenue sources as part of the approved development agreements, will not be included as part of the District assessments. The net annual cost to provide and maintain the improvements determined to be of special benefit shall be allocated to each property in proportion to the special benefits received. Landscaping & Lighting District No. 03 (De Anza Estates)Engineer's Report—City of Atascadero 3-2 Prepared by NBS—Fiscal Year 2012/13 Landscape Improvements The landscape improvements for the District may include, but are not limited to turf, ground cover, shrubs and plants, trees, irrigation and drainage systems, ornamental lighting, masonry walls or other fencing, hardscape improvements, monuments, and associated appurtenant facilities located within the landscape easements or public right-of-ways. Specifically the landscape improvement areas for this District are identified as: • Approximately 43,560 square feet of streetscape (parkway embankment) landscaping within the public right-of-ways located on EI Camino Real within the boundaries of Tract 2498; • An estimated 150 trees, including trees within the landscaped area on EI Camino Real, various trees within the open space area and the street trees within the street right-of-way on Ferrocarril Road; • Approximately 175,550 square feet (4.03 acres) of landscaped area in and around the two (2) drainage basins within Tract 2498; • Approximately fifty-one (51) acres of non-irrigated open space area; • 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. Landscaping & Lighting District No. 03 (De Anza Estates)Engineer's Report—City of Atascadero 3-3 Prepared by NBS—Fiscal Year 2012/13 4. ESTIMATE OF COSTS Costs Not Fiscal Year BUDGET Total Budget Assessed 2012/2013 DIRECT COSTS Annual Maintenance Landscape Services $7,750 $740 $7,010 Landscape Supplies 140 - 140 Landscape Utilities - - - City Landscape Services 16,450 - 16,450 Special Projects - - - Total Annual Direct Costs $24,340 $740 $23,600 ADMINISTRATION EXEPNSES Annual Administration Expenses City Annual Administration $560 $- $560 Engineer's Report&Services 4,740 - 4,740 County Administration Fee 172 - 172 Public Noticing 680 - 680 Total Annual Administration Costs $6,152 $- $6,152 TOTAL DIRECT&ADMINISTRATION COSTS $30,492 $740 $29,752 CAPITAL RESERVE COLLECTIONS/(USES) Landscape Rehabilitation/Replacement $3,030 $- $3,030 Trail &Pathway Rehabilitation/Replacement 1,515 758 757 Park&Open Space Rehabilitation/Replacement 730 - 730 Tree Rehabilitation/Replacement 1,250 - 1,250 Park Rehabilitation/Replacement 785 - 785 Use of Reserves - - - Total Annual Capital Reserve Collections/(Uses) $7,310 $758 $6,552 LEVY ADJUSTMENTS Interest Income-Improvement Fund $ 826 $- $ 826 Interest Income-Operating Reserve Fund (584) - (584) Operating Reserve Fund Collection Use 20,517 1,498 19,019 Total Levy Adjustments $(21,927) $(1,498) $(20,429) BALANCE TO LEVY $15,875 $- $15,875 DISTRICT STATISTICS Total Parcels 89 Parcels Levied 86 Total EBU 63.5 Levy per EBU $250.00 Maximum Levy per EBU $1,079.46 FUND BALANCE INFORMATION Beginning Operating Reserve Balance $55,362 Operational Reserve Interest 584 Operational Reserve Collection Use 20,429 Estimated Ending Operating Reserve Balance $35,517 Beginning Improvement Fund Balance $44,370 Improvement Fund Interest 826 Improvement Fund Collection Use 7,310 Estimated Ending Improvement Fund Balance $52,506 Landscaping &Lighting District No. 03 (De Anza Estates)Engineer's Report—City of Atascadero 4-1 Prepared by NBS—Fiscal Year 2012/13 5. METHOD OF ASSESSMENT 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 Article XIIID. 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 1972 Act and Article XIIID. The improvements provided by this District and for which properties will be assessed have been identified as necessary, required and/or desired for the orderly development of the properties within the District to their full potential, consistent with the development plans and applicable portions of the City General Plan. As such, these improvements would be necessary and required of individual property owners for the development of such properties and the ongoing operation, servicing and maintenance of these improvements would be the financial obligation of those properties. Therefore, the improvements and the annual costs of ensuring the maintenance and operation of the improvements are a distinct and special benefit to the properties within the District. Any improvement or portion thereof that is considered to be of general benefit shall be funded by other revenue sources and not included as part of the special benefit assessments allocated to properties within the District. Special Benefit The method of apportionment (method of assessment) established herein is based on the premise that each assessed parcel within the District receives special benefits from the improvements and the desirability and security of those properties is enhanced by the presence of public lighting and well- maintained landscaping in close proximity to those properties. The special benefits associated with landscape improvements are specifically: • Enhanced desirability of properties through association with the improvements. • Improved aesthetic appeal of properties providing a positive representation of the area and properties. • Enhanced adaptation of the urban environment within the natural environment from adequate green space and landscaping. Landscaping & Lighting District No. 03 (De Anza Estates)Engineer's Report—City of Atascadero 5-1 Prepared by NBS—Fiscal Year 2012/13 • Environmental enhancement through improved erosion resistance, dust and debris control, and fire prevention. • Increased sense of pride in ownership of property within the District resulting from well- maintained improvements associated with the properties. • Enhanced quality of life through well-maintained green space and landscaped areas. • Reduced criminal activity and property-related crimes (especially vandalism) against properties in the District through well-maintained surroundings and amenities including abatement of graffiti. • Enhanced environmental quality of the parcels by moderating temperatures, providing oxygenation and attenuating noise. The special benefits of street lighting and other public lighting facilities are the convenience, safety, and security of property, improvements, and goods. Specifically: • Enhanced deterrence of crime and the aid to police protection. • Increased nighttime safety on roads, streets and public areas. • Improved ability of pedestrians and motorists to see. • Improved ingress and egress to property. • Reduced vandalism and other criminal act and damage to improvements or property. • Improved traffic circulation and reduced nighttime accidents and personal property loss. The preceding special benefits contribute to the esthetic value and desirability of each of the assessed parcels within the District and thereby provide a special enhancement of the properties. Furthermore, it has been determined that the lack of funding to properly service and maintain the District improvements would have a negative impact on the properties within the District. 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 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. Should the City require maintenance of these areas, the associated costs will be funded by other revenue sources available to the City. Landscaping & Lighting District No. 03 (De Anza Estates)Engineer's Report—City of Atascadero 5-2 Prepared by NBS—Fiscal Year 2012/13 C. ASSESSMENT METHODOLOGY The method of apportionment for the District calculates the receipt of special benefit from the respective improvements based on the actual or proposed land use of the parcels within the District. The special benefit received by each lot or parcel is equated to the overall land use of parcels within the District based on the parcel's actual land use or proposed development. The costs associated with the improvements shall be fairly distributed among the parcels based upon the special benefit received by each parcel. Additionally, in compliance with the Article XIIID Section 4, each parcel's assessment may not exceed the reasonable cost of the proportional special benefit conferred to that parcel. The benefit formula used to determine the assessment obligation is therefore based upon both the improvements that benefit the parcels within the District as well as the proposed land use of each property as compared to other parcels that benefit from those specific improvements. To identify and determine the special benefit to be received by each parcel and their proportionate share of the improvement costs it is necessary to consider the entire scope of the planned improvements as well as individual property development within the District. Upon review of the proposed improvements it has been determined that each of the residential parcels within the District receives special benefits from the improvements to be funded by annual assessments and based on the planned property development a single zone of benefit is appropriate for the allocation of the assessments and proportional benefit. Equivalent Benefit Units: To assess benefits equitably it is necessary to relate each property's proportional special benefits to the special benefits of the other properties within the District. The method of apportionment established for most districts formed under the 1972 Act utilizes a weighted method of apportionment known as an Equivalent Benefit Unit 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 the other land uses are converted to a weighted EBU based on an assessment formula that equates the property's specific development status, type of development (land use), and size of the property, as compared to a single-family home site. Although the Equivalent Benefit Unit method of apportioning special benefit is most commonly used and applied to districts that have a wide range of land use classifications (residential and non- residential use), this District is comprised of only residential properties and the following apportionment analysis of special benefit addresses only residential land uses. Not all land use types described in the following are necessarily applicable to the development of properties within this District, but are presented for comparison purposes to support the proportional special benefit applied to those land use types within the District. Single-family Residential — This land use is defined as a fully subdivided residential home site with or without a structure. This land use is assessed 1.00 EBU per lot or parcel. This is the base value that the other properties are compared and weighted against regarding special benefit. Multi-family Residential — This land use is defined as a fully subdivided residential parcel that has more than one residential unit developed on the property. (This land use typically includes apartments, duplexes, triplex etc., but does not generally include condominiums, town-homes or mobile home 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 Landscaping & Lighting District No. 03 (De Anza Estates)Engineer's Report–City of Atascadero 5-3 Prepared by NBS–Fiscal Year 2012/13 Treatment, Disposal, Reuse, Third Edition). These various studies indicate that most public improvements and infrastructure are utilized and impacted at reduced levels by multi-family residential units and a similar reduction in proportional benefit is appropriate. Furthermore, it is also reasonable to conclude that as the density (number of units) increases the proportional benefit per unit tends to decline because the unit size and people per unit usually decreases. Based on these considerations and the improvements provided by this District, an appropriate allocation of special benefit for multi-family residential properties as compared to a single- family residential is best represented by the following special benefit assignment: 0.75 EBU per unit for the first 50 units; 0.50 EBU per unit for units 51 through 100; and 0.25 EBU per unit for remaining units. Condominium/Town-home Units — Condominiums and town-homes tend to share attributes of both single-family residential and multi-family residential properties and for this reason are identified as a separate land use classification. Like most single-family residential properties, these properties are not usually considered rental property and generally, the County assigns each unit a separate APN or assessment number. However, condominiums and town-homes often have similarities to multi-family residential properties in that they are generally zoned medium to high density and in some cases may involve multiple units on a single APN. In consideration of these factors it has been determined that an appropriate allocation of special benefit for condominiums, town-homes and similar residential properties is best represented by an assignment of 0.75 EBU per unit regardless of whether each unit is assigned an individual APN or there are multiple units assigned to an APN. (There is no adjustment for parcels with more than five units). Planned-Residential Development— This land use is defined as any property for which a tentative or final tract map has been filed and approved (a specific number of residential lots and units has been identified) and the property is expected to be subdivided within the fiscal year or is part of the overall improvement and development plan for the District. This land use classification often times involves more than a single parcel (e.g. the approved tract map encompasses more than a single APN). Each parcel that is part of the approved tract map shall be assessed proportionately for the proposed or estimated residential type and units to be developed on that parcel as part of the approved tract map. Accordingly, each parcel is assigned an appropriate number of benefit units that reflects the development of that property at build-out. (The EBU assigned to each parcel shall represent the combination of single-family, condominium, multi-family units to be developed). Vacant Residential — This land use is defined as property currently zoned for residential development, but a tentative or final tract map for the property has not yet been approved. Based upon the opinions of professional appraisers who appraise market property values for real estate in California, the land value portion of a property typically ranges from 20 to 30 percent of the total value of a developed residential property (the average is about 25 percent). Although the assessed value of an individual property is not 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 1.00 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 25.00 EBU (parcels in excess of 25 acres are assigned 25.00 EBU). Parcels less than one acre, shall be assigned a minimum of 1.00 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); Landscaping & Lighting District No. 03 (De Anza Estates)Engineer's Report–City of Atascadero 5-4 Prepared by NBS–Fiscal Year 2012/13 • Dedicated public easements including open space areas, utility rights-of- way, greenbelts, parkways, parks or other publicly owned properties that are part of the District improvements or may provide other benefits to private properties within the District; • Private properties that cannot be developed independently from an adjacent property, such as common areas, sliver parcels or bifurcated lots or properties with very restrictive development use; These types of parcels are considered to receive little or no benefit from the improvements and are therefore exempted from assessment, but shall be reviewed annually by the assessment engineer to confirm the parcels' current development status. Government owned properties or public properties are not necessarily exempt properties and shall be subject to special benefit assessment unless it qualifies for an exempt status. Special Cases — In many districts where multiple land use classifications are involved, there are 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. The following table provides a summary of land use classifications and the Equivalent Benefit Unit calculations previously outlined. Equivalent Property Type Benefit Units Multiplier Single-family Residential 1.00 Per Unit/Lot/Parcel 0.75 Per Unit for the First 50 Units Multi-family Residential 0.50 Per Unit for Units 51-100 0.25 Per Unit for all Remaining Units Condominium/Townhome Units 0.75 Per Unit 1.00 Per Planned SF Residential Lot 0.75 Per Planned Condominium Planned Residential Development 0.75 Per Unit for the First 50 Units 0.50 Per Unit for Units 51-100 0.25 Per Unit for all Remaining Units Vacant Residential Land 1.00 Per Acre Exempt Parcels 0.00 Per Parcel The following formula is used to calculate each parcel's EBU (proportional benefit). Parcel Type EBU x Acres or Units = Parcel EBU The total number of Equivalent Benefit Units (EBU's) is the sum of the 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 the 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 Landscaping & Lighting District No. 03 (De Anza Estates) Engineer's Report-City of Atascadero 5-5 Prepared by NBS—Fiscal Year 2012/13 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 included 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 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 from February to February. The Maximum Assessment rate was increased by 3.0%for fiscal year 2012/2013. Beginning with the second fiscal year (fiscal year 2006/2007) and each fiscal year thereafter, the Maximum Assessment Rate is recalculated and a new Maximum Assessment Rate is 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, reductions in the proportional special benefit assigned to a land use classifications are permitted. Changes in land use or size of an individual property resulting in an assessment increase, is not considered an increased assessment. To impose a new or increased assessment other than the annual inflationary adjustment provided by the preceding Assessment Range Formula, the City must comply with the provisions of 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. Landscaping & Lighting District No. 03 (De Anza Estates)Engineer's Report—City of Atascadero 5-6 Prepared by NBS—Fiscal Year 2012/13 6. ASSESSMENT DIA GRA M The parcels within the Landscaping and Lighting District No. 03 De Anza Estates consist of the 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 (75.76 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 the original parcels of land within the proposed District. 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, was presented to the property owners of record and approved in accordance with the provisions of the California Constitution. Landscaping & Lighting District No. 03 (De Anza Estates)Engineer's Report—City of Atascadero 6-1 Prepared by NBS—Fiscal Year 2012/13 ASSESSMENT DIAGRAM FOR LANDSCAPE AND LIGHTING DISTRICT NO. 3(SE ANZA ESTATES) CITY OF ATASCADERO,COUNTY OF SAN LUIS OBISPO,STATE OF CALIFORNIA SHEET 1 OF 1 PROPOSED BOUNDARIES MAP OF LANDSCAPING AND LIGHTING DISTRICT NO. 03 (DE ANZA ESTATES) CITY OF ATASCADERO FILED N TME OMCE OF,1E CITY°enc TMs-DAY aP wn l't COUNTY OF SAN LUIS OBISPO I HEREBY3(E AN7Y THAT 1NlS MAP F ATAS THE BOUNOARIE6 OF AN UJI 0018 AND EA7E OF MFOFr STATE OF CALIFORNIA WAS A ANrw F NE CIT,CITY C A F THE 07Y OF ATY CA BAN AT REGULAR STALE OF THEREOF,RASA N THE BY TE CITY 12711xn of 140E aTr 6'ATfNw.,.AT A fEBAM OMEETINGLUTEN TNQELF. � NE1D ON THE DAY OF 2005.BY Itg IR501At11aN Na C"CLERK CIfY OF ATASGIOEAO t1otSX .!`SITE 1 O 10 0 ,N _ ABCAd4rd�r O VICINITY MAP 0 e ® ` G a ND. P NO. TRACT �NO. P NO. •S ' 1 040-044-027 249e 11 042-0{4-02{ 2496 ® 4 2 D40-0.44-42S 2496 12 049-044-033 2405 D 5 D40-044-029 24M 042-044-005 am 4 046- 14 ce 2406 J B 2496 O! 2486 24M 9 24416 2406 eD49-044--003 2406 16 049`044-010 2406 0 8 Doe-014-004 2406 10 049-044-011 2418 10 040-D44-023 2498 20 049-044-012 2496 21 D49-044-01322 044-014 2408 �p 23 014-044-015 2am 408 `4q 24 040-044-016 •/A 2406 26 049-044-016 2406 W 049-044-019 2a 049-014-M 2496 20 040-D44-021 2486 30 DW-044-CM 2106 31 049-044-026 2496 32 049-044-026 2496 MuniFinancial 04' D'�°� 34 040-D,3-004 2486 ROO 08501156 3d9aMa ' I� 0 � LEGEND ��4'���iw 'a 4'O� PROPOSED BOUNDARY �P SANTA CRUZ RD. ,�. ,�® 1L� MAP REFERENCE NUMBER so"I SCAM:1'-1540 (06-083J JULY 2005 2011/2012 L&L No. 3 Page 19 of 22 7. ASSESSMENT ROL L 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 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 assessment amounts for each of the parcels within the District as determined by the assessment rates and method of apportionment described herein: Landscaping & Lighting District No. 03 (De Anza Estates)Engineer's Report—City of Atascadero 7-1 Prepared by NBS—Fiscal Year 2012/13 CITY OF ATASCADERO Landscaping and Lighting District No. 03 (De Anza Estates) Fiscal Year 2012/2013 Assessment Roll Assessor's Equivalent Maximum Proposed Parcel Number Benefit Units Assessment Assessment(') 049-043-003 0 $ - $ - 049-043-004 0 - - 049-044-002 1 1,079.46 250.00 049-044-003 1 1,079.46 250.00 049-044-004 1 1,079.46 250.00 049-044-005 1 1,079.46 250.00 049-044-006 1 1,079.46 250.00 049-044-007 1 1,079.46 250.00 049-044-008 1 1,079.46 250.00 049-044-009 1 1,079.46 250.00 049-044-010 1 1,079.46 250.00 049-044-011 1 1,079.46 250.00 049-044-012 1 1,079.46 250.00 049-044-013 1 1,079.46 250.00 049-044-014 1 1,079.46 250.00 049-044-015 1 1,079.46 250.00 049-044-016 1 1,079.46 250.00 049-044-017 1 1,079.46 250.00 049-044-018 1 1,079.46 250.00 049-044-019 1 1,079.46 250.00 049-044-020 1 1,079.46 250.00 049-044-021 1 1,079.46 250.00 049-044-022 1 1,079.46 250.00 049-044-023 1 1,079.46 250.00 049-044-024 1 1,079.46 250.00 049-044-025 1 1,079.46 250.00 049-044-026 1 1,079.46 250.00 049-044-033 1 1,079.46 250.00 049-046-001 0 - - 049-046-002 0.625 674.66 156.24 049-046-003 0.625 674.66 156.24 049-046-004 0.625 674.66 156.24 049-046-005 0.625 674.66 156.24 049-046-006 0.625 674.66 156.24 049-046-007 0.625 674.66 156.24 049-046-008 0.625 674.66 156.24 049-046-009 0.625 674.66 156.24 049-046-010 0.625 674.66 156.24 049-046-011 0.625 674.66 156.24 049-046-012 0.625 674.66 156.24 049-046-013 0.625 674.66 156.24 049-046-014 0.625 674.66 156.24 049-046-015 0.625 674.66 156.24 Landscaping and Lighting District No. 03(De Anza Estates)Engineer's Report-City of Atascadero Prepared by NBS-Fiscal Year 2012/13 Assessor's Equivalent Maximum Proposed Parcel Number Benefit Units Assessment Assessment(') 049-046-016 0.625 674.66 156.24 049-046-017 0.625 674.66 156.24 049-046-018 0.625 674.66 156.24 049-046-019 0.625 674.66 156.24 049-046-020 0.625 674.66 156.24 049-046-021 0.625 674.66 156.24 049-046-022 0.625 674.66 156.24 049-046-023 0.625 674.66 156.24 049-046-024 0.625 674.66 156.24 049-046-025 0.625 674.66 156.24 049-046-026 0.625 674.66 156.24 049-046-027 0.625 674.66 156.24 049-046-028 0.625 674.66 156.24 049-046-029 0.625 674.66 156.24 049-046-030 0.625 674.66 156.24 049-046-031 0.625 674.66 156.24 049-046-032 0.625 674.66 156.24 049-046-033 0.625 674.66 156.24 049-046-034 0.625 674.66 156.24 049-046-035 0.625 674.66 156.24 049-046-036 0.625 674.66 156.24 049-046-037 0.625 674.66 156.24 049-046-038 0.625 674.66 156.24 049-046-039 0.625 674.66 156.24 049-046-040 0.625 674.66 156.24 049-046-041 0.625 674.66 156.24 049-046-042 0.625 674.66 156.24 049-046-043 0.625 674.66 156.24 049-046-044 0.625 674.66 156.24 049-046-045 0.625 674.66 156.24 049-046-046 0.625 674.66 156.24 049-046-047 0.625 674.66 156.24 049-046-048 0.625 674.66 156.24 049-046-049 0.625 674.66 156.24 049-046-050 0.625 674.66 156.24 049-046-051 0.625 674.66 156.24 049-046-052 0.625 674.66 156.24 049-046-053 0.625 674.66 156.24 049-046-054 0.625 674.66 156.24 049-046-055 0.625 674.66 156.24 049-046-056 0.625 674.66 156.24 049-046-057 0.625 674.66 156.24 049-046-058 0.625 674.66 156.24 049-046-059 0.625 674.66 156.24 049-046-060 0.625 674.66 156.24 049-046-061 0.625 674.66 156.24 Totals 63.5 $ 68,545.71 $ 15,874.40 (1)Slight variance in charge or total budget are due to rounding for placement on the tax rolls. Landscaping and Lighting District No. 03(De Anza Estates)Engineer's Report-City of Atascadero Prepared by NBS-Fiscal Year 2012/13 ITEM NUMBER: A- 5 DATE: 05/08/12 r rr r hr r r ''i978 r7 Atascadero City Council Staff Report — Administrative Services Department Las Lomas (Woodridge) Assessment Districts RECOMMENDATIONS: Council: 1. Adopt Draft Resolution A initiating proceedings for the levy and collection of annual assessments for Atascadero Street and Storm Drain Maintenance District No. 02 (Woodridge) for fiscal year 2012/2013; and, 2. Adopt Draft Resolution B accepting and preliminarily approving the Engineer's Annual Levy Report regarding the Atascadero Street and Storm Drain Maintenance District No. 02 (Woodridge); and, 3. Adopt Draft Resolution C declaring the City's intention to levy and collect annual assessments within Atascadero Street and Storm Drain Maintenance District No. 02 (Woodridge) in fiscal year 2012/2013, and to appoint a time and place for the public hearing on these matters; and, 4. Adopt Draft Resolution D initiating proceedings for annual levy of assessments for the Atascadero Landscaping and Lighting Maintenance District No. 02 (Woodridge) for fiscal year 2012/2013 pursuant to the provisions of Part 2 of Division 15 of the California Streets and Highways Code; and, 5. Adopt Draft Resolution E for preliminary approval of the Annual Engineer's Levy Report for the Atascadero Landscaping and Lighting Maintenance District No. 02 (Woodridge) for fiscal year 2012/2013; and, 6. Adopt Draft Resolution F declaring the City's intention to levy and collect assessments for the Atascadero Landscaping and Lighting Maintenance District No. 02 (Woodridge) for fiscal year 2012/2013. REPORT-IN-BRIEF: The City Council formed and began assessing Atascadero Street and Storm Drain Maintenance District No. 02 (Woodridge) in 2005. This district was formed to provide funding for future routine maintenance of the streets, storm drains and sidewalks in the Woodridge subdivision. The City Council also formed and began assessing Atascadero Landscape and Lighting Maintenance District No. 02 (Woodridge) in 2005. This district was formed to provide ITEM NUMBER: A- 5 DATE: 05/08/12 for funding and maintenance of street trees, open space, park area, medians, walkways, paths and other landscape and lighting improvements within the Woodridge subdivision. The Woodridge subdivision is now known as Las Lomas. The Assessment Districts were formed and named when the area was known as the Woodridge development. All references to Woodridge are now understood to mean the development known as Las Lomas. NBS, an independent financial consultant, was hired to prepare the engineer's report for the two districts. The engineer's report and the levies must be approved by Council annually. This is done in a two-step process. Tonight, there are three resolutions for each district (a total of 6 resolutions in all) that must be adopted in order to continue the assessments within the districts. The resolutions adopted tonight will also establish the date and time for the public hearing. The public hearing is tentatively scheduled for June 12, 2012, at 6:00 p.m. or soon thereafter, at which time the final resolutions will be presented to the Council for passage. The proposed assessments for fiscal year 2012/2013 are less than the Maximum Assessment Rate. In accordance with the formula voters of the district adopted in 2005, the City may increase the Maximum Assessment Rate for inflation by the greater of the Consumer Price Index (CPI) or 3.0%. The Maximum Assessment Rate was increased by 3.0% this year for both districts. The Landscape and Lighting District has a surplus fund balance, so the City staff held a neighborhood meeting to receive input from property owners as to the preference on how to treat the surplus. The property owners in attendance requested an assessment of about 23% of the allowable maximum annual assessments for the Landscaping and Lighting District, and about 17% for the Street and Storm Drain District. Amount Per EBU Amount Per EBU District Maximum Assessment Proposed Assessment Fiscal Year 2012-13 Fiscal Year 2012-13 Atascadero Street and Storm Drain Maintenance District No. $613.52 $102.00 02 Las Lomas Atascadero Landscaping and Lighting Maintenance District $1,523.56 $350.81 No. 02 Las Lomas FISCAL IMPACT: Annual assessments for 2012/2013 will total $23,741 for road/drainage system maintenance and $81,652 for landscape and lighting maintenance. These amounts will be assessed to the owners of parcels in Woodridge. ITEM NUMBER: A- 5 DATE: 05/08/12 ATTACHMENTS: 1. Draft Resolution A - initiating proceedings for the levy and collection of annual assessments for Atascadero Street and Storm Drain Maintenance District No. 02 (Woodridge) for fiscal year 2012/2013 2. Draft Resolution B - accepting and preliminarily approving the Engineer's Annual Levy Report regarding the Atascadero Street and Storm Drain Maintenance District No. 02 (Woodridge) 3. Draft Resolution C - declaring the City's intention to levy and collect annual assessments within Atascadero Street and Storm Drain Maintenance District No. 02 (Woodridge) in fiscal year 2012/2013, and to appoint a time and place for the public hearing on these matters 4. Engineer's Annual Levy Report- for the levy and collection of fiscal year 2012/2013 assessments for Atascadero Street and Storm Drain Maintenance District No. 02 (Woodridge) 5. Draft Resolution D - initiating proceedings for annual levy of assessments for the Atascadero Landscaping and Lighting Maintenance District No. 02 (Woodridge) for fiscal year 2012/2013 pursuant to the provisions of Part 2 of Division 15 of the California Streets and Highways Code 6. Draft Resolution E - preliminary approval of the Annual Engineer's Levy Report for Atascadero Landscaping and Lighting Maintenance District No. 02 (Woodridge) for fiscal year 2012/2013 7. Draft Resolution F - declaring the City's intention to levy and collect assessments for the Atascadero Landscaping and Lighting Maintenance District No. 02 (Woodridge) for fiscal year 2012/2013 8. Engineer's Annual Levy Report- for the levy and collection of fiscal year 2012/2013 assessments for Atascadero Landscaping and Lighting District No. 02 (Woodridge) ITEM NUMBER: A- 5 DATE: 05/08/12 Attachment 1 DRAFT RESOLUTION A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ATASCADERO, CALIFORNIA, INITIATING PROCEEDINGS FOR THE LEVY AND COLLECTION OF ANNUAL ASSESSMENTS FOR ATASCADERO STREET AND STORM DRAIN MAINTENANCE DISTRICT NO. 02 (WOODRIDGE) FOR FISCAL YEAR 2012/2013. The City Council of the City of Atascadero (hereafter referred to as "City Council")hereby finds, determines,resolves and orders as follows: 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") formed an assessment district to be designated as Atascadero Street and Storm Drain Maintenance District No. 02 (Woodridge) (hereafter referred to as the "District"), for the purpose of funding the ongoing operation, maintenance and servicing of public streets, sidewalks, storm drain and flood control facilities installed in conjunction with the development of properties known as Tract 2525-1; 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 NBS as the Engineer of Work, for the purpose of assisting with the administration 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 MHC and XIIID; NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Atascadero as follows: SECTION 1. The City Council hereby orders the Engineer to prepare and file an Engineer's Annual Levy Report concerning the levy of assessments for properties within the District as specified by Article 4 Section 54716 of the 1982 Act. 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, outlets, catch basins, ITEM NUMBER: A- 5 DATE: 05/08/12 Attachment 1 drainage basins, manholes, and associated appurtenant facilities located within the public street right-of-ways and other public easements within the District. SECTION 3. The territory within Atascadero Street and Storm Drain Maintenance District No. 02 (Woodridge) consists of lots, parcels and subdivisions of land located in the development known as Tract 2525-1. 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: Bob Kelley,Mayor ATTEST: Marcia McClure Torgerson, C.M.C., City Clerk APPROVED AS TO FORM: Brian A. Pierik, City Attorney ITEM NUMBER: A- 5 DATE: 05/08/12 Attachment 2 DRAFT RESOLUTION B RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ATASCADERO, CALIFORNIA, ACCEPTING AND PRELIMINARILY APPROVING THE ENGINEER'S ANNUAL LEVY REPORT REGARDING THE ATASCADERO STREET AND STORM DRAIN MAINTENANCE DISTRICT NO. 02 (WOODRIDGE). The City Council of the City of Atascadero (hereafter referred to as "City Council")hereby finds, determines,resolves and orders as follows: WHEREAS, the City Council has, by previous Resolution, ordered the preparation of an Engineer's Annual Levy Report (hereafter referred to as the "Report") regarding the assessment district to be designated as the Atascadero Street and Storm Drain Maintenance District No. 02 (Woodridge) (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 and 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 as follows: SECTION 1. The preceding recitals are 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. ITEM NUMBER: A- 5 DATE: 05/08/12 Attachment 2 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. e. The District Roll containing the Levy for each Assessor Parcel Number within the District for fiscal year 2012/2013. 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 described in the Report is hereby approved on a preliminary basis. 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. 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: Bob Kelley,Mayor ATTEST: Marcia McClure Torgerson, C.M.C., City Clerk APPROVED AS TO FORM: Brian A. Pierik, City Attorney ITEM NUMBER: A- 5 DATE: 05/08/12 Attachment 3 DRAFT RESOLUTION C RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ATASCADERO, CALIFORNIA, DECLARING ITS INTENTION TO LEVY AND COLLECT ANNUAL ASSESSMENTS WITHIN ATASCADERO STREET AND STORM DRAIN MAINTENANCE DISTRICT NO. 02 (WOODRIDGE) IN FISCAL YEAR 2012/2013, AND TO APPOINT A TIME AND PLACE FOR THE PUBLIC HEARING ON THESE MATTERS. The City Council of the City of Atascadero (hereafter referred to as "City Council")hereby finds, determines,resolves and orders as follows: 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 approve 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 for the assessment district designated as Atascadero Street and Storm Drain Maintenance District No. 02 (Woodridge) (hereafter referred to as the "District"); 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 for Fiscal Year 2012/2013 (July 1, 2012 and ending June 30, 2013) in accordance with Chapter 1, Article 4 of the 1982 Act and in accordance with the requirements of the California Constitution, Articles AWIC and XHID, 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 as follows: 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. 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, ITEM NUMBER: A- 5 DATE: 05/08/12 Attachment 3 curbs, sidewalks, hardscape, bridges, fencing, signage, drains, pipes, inlets, outlets, catch basins, drainage basins, manholes, and associated appurtenant facilities located within the public street right-of-ways and other public easements within the District. 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 Street and Storm Drain Maintenance District No. 02 (Woodridge) consists of lots, parcels and subdivisions of land located in the development known as Tract 2525-1. SECTION 4. 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. SECTION 5. Notice is hereby given that a Public Hearing on these matters will be held by the City Council on Tuesday, June 12, 2012 at 6:00 p.m. or as soon thereafter as feasible in the regular meeting chambers of the City Council located at 6907 El Camino Real, Atascadero, California, in accordance with Government Code, Section 53753 and California Constitution, Article WIID, 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. At the Public Hearing, interested persons shall be permitted to present written and/or oral testimony. ITEM NUMBER: A- 5 DATE: 05/08/12 Attachment 3 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: Bob Kelley,Mayor ATTEST: Marcia McClure Torgerson, C.M.C., City Clerk APPROVED AS TO FORM: Brian A. Pierik, City Attorney helping communities fund tomorrow City of Atascadero Annual Engineer's Report Street and Storm Drain Maintenance District No. 02 Las Lomas (Woodridge) Fiscal Year 2012/13 Main Office 32605 Temecula Parkway, Suite 100 Temecula, CA 92592 Toll free: 800.676.7516 Fax: 951.296.1998 Regional Office 870 Market Street, Suite 1223 San Francisco, CA 94102 Toll free: 800.434.8349 Fax: 415.391.8439 CITY OF ATASCADERO Street and Storm Drain Maintenance District No. 02 Las Lomas (Woodridge) 6907 EI Camino Real Atascadero, CA 93422 Phone — (805) 461-5000 Fax — (805) 461-7612 CITY COUNCIL Bob Kelley, Mayor Tom O'Malley, Mayor Pro Tem Brian Sturtevant, Council Member Jerry Clay, Sr., Council Member Roberta Fonzi, Council Member AGENCY STAFF Wade G. McKinney, City Manager James R. Lewis, Assistant City Manager Rachelle Rickard, Administrative Services Director Jeri Rangel, Assistant Administrative Services Director NBS Danielle Wood, Client Services Director Adina Vazquez, Senior Consultant TABLE OF CONTENTS 1. ENGINEER'S LETTER 1-1 2. EXECUTIVE SUMMARY 2-1 3. PLANS AND SPECIFICATIONS 3-1 A. BENEFITING PROPERTIES WITHIN THE DISTRICT.................................3-1 B. FUNDING AUTHORIZED BY THE 1982 ACT...............................................3-1 C. DESCRIPTION OF IMPROVEMENTS AND SERVICES ..............................3-1 4. ESTIMATE OF COSTS 4-1 5. METHOD OF ASSESSMENT 5-1 A. GENERAL ....................................................................................................5-1 B. BENEFIT ANALYSIS....................................................................................5-1 C. ASSESSMENT METHODOLOGY................................................................5-2 D. ASSESSMENT RANGE FORMULA.............................................................5-5 6. ASSESSMENT DIAGRAM 6-1 7. ASSESSMENT ROLL 7-1 Street&Storm Drain District No. 02 Las Lomas (Woodridge) Engineer's Report—City of AtascaderoTable of Contents Prepared by NBS—Fiscal Year 2012/13 1. ENGINEER'S LETTER WHEREAS, on March 24, 2005 by Resolution No. 2005-048, the City Council of the City of Atascadero (the "City"), State of California, in accordance with and 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"), established the City of Atascadero Street and Storm Drain Maintenance District No. 02 Las Lomas (Woodridge) (the "District"); and WHEREAS, on May 8, 2012, the City Council, under the 1982 Act, adopted its Resolution Initiating Proceedings for the Annual Levy of Assessments and Ordering the Preparation of an Engineer's Report for the District; and WHEREAS, the Resolution Initiating Proceedings directed NBS to prepare and file a report describing the general nature, location, and extent of the improvements to be maintained; an estimate of the costs of the maintenance, operations, and servicing of the improvements for the District for the referenced fiscal year; a diagram for the District, showing the area and properties to be assessed; and an assessment of the estimated costs of the administration, maintenance, operations, and servicing the improvements, assessing the net amount upon all assessable lots and/or parcels within the District in proportion to the special benefit received. NOW THEREFORE, the assessments as detailed in this Engineer's Report and as summarized in the table below are made to cover the portion of the estimated costs of maintenance, operation and servicing of the improvements to be paid by the assessable real property within the District in proportion to the special benefit received. The following table summarizes the proposed assessment for Fiscal Year 2012/13: FY 2012/13 Summary of Assessment Description Amount Estimated Annual Costs $6,944 Capital Reserve Collection/ Uses 25,053 Levy Adjustments 8,257 Balance to Levy $23,740 Fiscal Year 2012/13 Maximum Rate $613.52 Fiscal Year 2012/13 Proposed Applied Rate $102.00 I, the undersigned, respectfully submit the enclosed Engineer's Report and, to the best of my knowledge, information, and belief, the Engineer's Report, Assessments, and the Assessment Diagram herein have been prepared, computed, and levied in accordance with the assessment methodology adopted, approved, and ordered by the City Council of the City of Atascadero and the 1982 Act. NBS Street&Storm Drain District No. 02 Las Lomas(Woodridge) Engineer's Report—City of Atascadero 1-1 Prepared by NBS—Fiscal Year 2012/13 2. EXECUTIVE SUMMARY 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"), proposed to form and levy special benefit assessments for the district designated as: Street and Storm Drain Maintenance District No. 02 Las Lomas (Woodridge) (hereafter referred to as the "District"), which includes the lots and parcels of land within the residential subdivision known as Las Lomas (Woodridge), Tract 2525-1 within the City limits of the City. This Engineer's Report (hereafter referred to as the "Report") has been prepared in connection with the levy and collection of annual assessments related thereto for fiscal year 2012/2013. The City Council formed the District, and provided for the levy and collection of annual assessments on the County tax rolls to provide ongoing funding for the costs and expenses required to service and maintain the street and storm drain improvements and facilities associated with and resulting from the development of properties within the District. The improvements to be provided by the District and the assessments described herein are made pursuant to the 1982 Act and the substantive and procedural provisions of the California Constitution. This Report describes the District, the improvements, and the proposed assessments to be levied against properties in connection with the special benefits the properties will receive from the maintenance and servicing of the District improvements and facilities. The annual assessments described herein will provide a funding source 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 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 improvements, the method of apportionment, and assessments described herein are based on current development plans and specifications for Tract 2525-1; and by reference these plans and specifications are made part of this Report. 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's formation, the City conducted 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 conducted 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 were opened and tabulated to determine whether majority protest existed (ballots were weighted based on assessment amounts), and by resolution the City Council confirmed the results of the ballot tabulation. The tabulation of the ballots indicated that majority protest did not exist for the proposed assessments and the assessment range formula presented and described herein; therefore, the City Council approved the Report (as submitted or amended), ordered the formation of the District, and approved the levy and collection of assessments. The assessments for fiscal year 2005/2006 were Street&Storm Drain District No. 02 Las Lomas(Woodridge) Engineer's Report—City of Atascadero 2-1 Prepared by NBS—Fiscal Year 2012/13 submitted to the San Luis Obispo County Auditor/Controller for inclusion on the property tax roll for each parcel. Each subsequent fiscal year, a Report shall be prepared and presented to the City Council describing any changes to the improvements, proposed services, the annual budget or assessments for that fiscal year and the City Council may 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. Street&Storm Drain District No. 02 Las Lomas(Woodridge) Engineer's Report—City of Atascadero 2-2 Prepared by NBS—Fiscal Year 2012/13 3. PLA NS A ND SPECIFI CA TIONS A. BENEFITING PROPERTIES WITHIN THE DISTRICT The territory within the District consists of the lots, parcels and subdivisions of land within the proposed residential subdivision known as the Las Lomas (Woodridge), Tract 2525-1, which encompasses an area of land totaling approximately one hundred twenty-two acres (121.65 acres). This residential subdivision is planned to include one hundred forty-four (144) single-family residential units; thirty-five (35) condominium/senior housing units; and a single one hundred (100) unit multi-family residential project at build-out. Due to parcel splits the multi-family residential project is spread over three parcels. The planned subdivision is situated in the southeast portion of the City of Atascadero and is generally located: • South and east of Halcon Road; • East of Highway 101 and EI Camino Real • South and west of the Southern Pacific Railroad Tracks; and • North of Salinas Road and Santa Cruz Road 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. C. DESCRIPTION OF IMPROVEMENTS AND SERVICES The purpose of this District is to fund the activities necessary to maintain and service the local streets and the drainage and flood control systems constructed and installed in connection with development of properties within the residential subdivision known as Las Lomas (Woodridge), Tract 2525-1 pursuant to approved development plans and agreements. The improvements may consist of all or a portion of the public streets, drainage and flood control facilities associated with Tract 2525-1 and the maintenance of these improvements may include but are not limited to the 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&Storm Drain District No. 02 Las Lomas(Woodridge) Engineer's Report—City of Atascadero 3-1 Prepared by NBS—Fiscal Year 2012/13 • Street maintenance that may include but is not limited to the repair and servicing of street surfaces, curbs, gutters, bridges, driveway approaches, sidewalks, barricades, delineation, signage or other facilities within the public street right-of-ways installed in connection with the development of properties in Tract 2525-1 and that have been dedicated to the City; • Storm drain and flood control maintenance that may include but is not limited to inspection, repair and servicing of drainage basins, inlets, catch basins, manholes, outlets, drywells, pumps, filters and storm drain pipes installed in connection with the development of properties of Tract 2525-1 as well as any off-site improvements and facilities directly associated with the aforementioned infrastructure that is deemed necessary to service or protect the properties including waste water treatment; • The appurtenant, equipment, materials and service contracts related to the aforementioned improvements and facilities; • Specifically excluded are those improvements or facilities: located on private property or common areas; that may be provided or maintained by an agency other than the City; that may be provided by another assessment or tax levied by the City; or that may be provided and maintained by a Homeowner's Association or similar entity. Detailed maps and descriptions of the location and extent of the specific improvements to be maintained by the District are on file in the Office of Public Works and by reference are made part of this Report. Those portions of the District improvements that may be identified as general benefit or will be funded in whole or in part by other revenue sources as part of the approved development agreements, will not be included as part of the District assessments. The net annual cost to provide and maintain the improvements determined to be of special benefit shall be allocated to each property in proportion to the special benefits received. Street Maintenance The street maintenance program may include, but is not limited to: the repair of potholes, cracks or other failures in the asphalt surface; repair or replacement of curbs, gutters, driveway approaches and sidewalks as required as part of maintaining the streets; repair or installation of street signs, barricades, fencing or other delineation; mechanized sweeping and cleaning of the streets and gutters; slurry sealing, overlays and re- striping of the street surfaces. The specific activities and timing of various street and road maintenance services shall be determined by the Citys Public Works Department as necessary to extend the life of the streets or to improve traffic circulation and safety as available funding permits. Specifically the street improvements for this District are identified as: • Approximately 290,610 square feet of asphalt street surface located on the various interior streets identified as Calle Milano, Eliano Street, Via Cielo, Avion Road, Alcotan Lane, and Azor Lane; • Approximately 13,750 linear feet of curb and gutter along Calle Milano, Eliano Street, Via Cielo, Avion Road, Alcotan Lane, and Azor Lane; • Approximately 1,480 linear feet of curb and gutter in and around the median islands on Calle Milano and at Via Cielo; • Approximately 145 driveway approaches, 45,264 square feet of sidewalks and various street signs within the District; • Specifically not included as part of the street maintenance program are the costs associated with major replacements or reconstruction. Although the District assessments will provide funding for regular maintenance and servicing of the improvements that will extend the useful life of the street improvements, the assessments are not intended to fund major replacements or reconstruction of Street&Storm Drain District No. 02 Las Lomas(Woodridge) Engineer's Report—City of Atascadero 3-2 Prepared by NBS—Fiscal Year 2012/13 the street surfaces or adjacent improvements such as curbs, gutters or driveway approaches. The costs of extensive replacement or reconstruction activities such as grinding and resurfacing of the asphalt; and replacement of curbs, gutters driveway approaches and sidewalks is significantly more than the amount that can reasonably be collected annually under the provisions of the 1982 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. The Public Works Department shall authorize the operational activities and maintenance of the public street and right-of-way improvements, facilities and services that may include, but are not limited to: • Regular street sweeping services necessary to control dirt and debris on street surfaces and gutters; • Annual inspection of street surface and repair of potholes and surface cracks as needed; • Periodic slurry or overly of street surfaces and driveway approaches (typically one or the other once every five years); • Periodic re-striping of traffic lanes, bike lanes, street parking areas, crosswalks and intersections (typically in conjunction with slurry or overly activities); • Graffiti abatement of public improvements within the street right-of-ways that are maintained by the District including but not limited to sandblasting, repainting and repair of fences, walls, barricades, sidewalks and signage as needed; • Annual inspection and periodic repair or replacement of decorative street- pavers as needed; ■ Annual inspection and minor repairs of curbs, gutters, driveway approaches and sidewalks including partial segment replacements as needed to ensure pedestrian and vehicle safety or the integrity of the street; • Annual inspection and periodic repair or rehabilitation of street signs and traffic control devices; • Annual inspection and repair of barricades, street-fencing, delineation or retaining walls within the street right-of-ways as needed. A portion of the services described above are not performed on an annual basis but rather on a periodic basis, such as slurry sealing or overlaying the asphalt streets, and the funds necessary for these activities are collected in installments as part of the annual assessments. The monies collected each year for these services will be accumulated in a special fund of the District (Reserve Fund or Capital Improvement Fund). The monies accumulated for these activities shall be spent when sufficient funds have been accumulated to perform the services deemed necessary by the City (approximately every five years). This process of accumulating funds (installments) shall continue until such time the District is dissolved; or the City determines that such funding procedures require modification. Changes in the process of accumulating funds that would result in an increase to the annual assessment rate must be presented to the property owners for approval prior to imposing such an increase. Storm Drain and Flood Control Maintenance The storm drain and flood control system associated with the District may include but is not limited to: drainage basins and bio-filters; channel ways; 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 Street&Storm Drain District No. 02 Las Lomas(Woodridge) Engineer's Report—City of Atascadero 3-3 Prepared by NBS—Fiscal Year 2012/13 maintenance program that will adequately regulate and control storm water runoff resulting from the development of properties within the District. This maintenance program may include but is not limited to: inspection and documentation of the system; cleaning, servicing or repair of the facilities and equipment; and the partial replacement or rehabilitation of equipment and facilities. The storm drain and flood control system includes but is not limited to: • Approximately 175,550 square feet of drainage basin area; • Twenty-four (24) inlets, outlets and manholes located throughout Tract 2525-1; • Approximately 4,965 linear feet of storm drain pipe ranging from 18 inches to 36 inches in diameter. The Public Works Department shall authorize and schedule the operational activities and maintenance of the storm drain and storm water pollution treatment infrastructure, facilities and services that may include, but are not limited to: • Cleaning of storm drain inlets, catch basins, manholes and pipes as needed; • Stencil maintenance and documentation of facilities as required by Federal, State or County regulations; • Cleaning and landscape maintenance of the drainage basins, bio-filter areas or channel ways 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, • The operational costs related to NPDES compliance requirements. A portion of the services described above are not performed on an annual basis but rather on a periodic basis such as minor repairs to the storm drain inlets, catch basins and outlets, and the funds necessary for these activities are collected in installments as part of the annual assessments. The monies collected each year for these services will be accumulated in a special fund of the District (Reserve Fund or Capital Improvement Fund). The monies accumulated for these activities shall be spent as needed to perform the services deemed necessary by the City. This process of accumulating funds (installments) shall continue until such time the District is dissolved; or the City determines that such funding procedures require modification. Changes in the process of accumulating funds that would result in an increase to the annual assessment rate must be presented to the property owners for approval prior to imposing such an increase. Street&Storm Drain District No. 02 Las Lomas(Woodridge) Engineer's Report—City of Atascadero 3-4 Prepared by NBS—Fiscal Year 2012/13 4. ESTIMATE OF COSTS BUDGET FY 2012/2013 DIRECT COSTS Street, Roads&Storm Drain Improvements Drainage Maintenance Services $1,690 Inspection &Operational Services -Roads, Drainage 250 Total Annual Direct Costs $1,940 ADMINISTRATION EXEPNSES City Annual Administration $520 Engineer's Report&Services 3,700 County Administration Fee 364 Public Noticing 420 Total Annual Administration Costs $5,004 TOTAL DIRECT&ADMINISTRATION COSTS $6,944 CAPITAL RESERVE COLLECTIONS/(USES) Collection for Street Surface Activities $13,100 Collection for Street Re-striping 70 Collection for Repair Activities: Curbs, Gutters,Approaches&Sidewalks 236 Collection for Debris Removal 250 Collection for Storm Drain Fencing 11,307 Collection for Storm Drain Infrastructure 90 Total Annual Capital Reserve Collections/(Uses) $25,053 LEVY ADJUSTMENTS Interest Income- Improvement Fund $ 2,288 Interest Income-Operating Reserve Fund (1,122) Improvement Fund (Use) - Operating Reserve Fund Collection (Use) (4,847) Total Levy Adjustments $(8,257) BALANCE TO LEVY $23,740 DISTRICT STATISTICS Total Parcels 190 Parcels Levied 182 Total EBU 232.75 Levy per EBU $102.00 Maximum Levy per EBU $613.52 FUND BALANCE INFORMATION Beginning Operating Reserve Balance $82,806 Operational Reserve Interest 1,122 Operational Reserve Collection (Use) $(8,257) Ending Operating Reserve Balance $75,671 Beginning Improvement Fund Balance $134,388 Im rovement Fund Interest 2,288 Improvement Fund Collection (Use) 25,053 Ending Improvement Fund Balance $161,729 Street&Storm Drain District No. 02 Las Lomas(Woodridge) Engineer's Report—City of Atascadero 4-1 Prepared by NBS—Fiscal Year 2012/13 5. METHOD OF ASSESSMENT A. GENERAL The 1982 Act permits the establishment of assessment districts by agencies for the purpose of providing for the maintenance, operation and servicing of drainage and flood control improvements as well as streets, roads and appurtenant facilities. The 1982 Act further requires that the cost of these improvements be levied according to benefit rather than assessed value: "The amount of the assessment imposed on any parcel of property shall be related to the benefit to the parcel which will be derived from the provision of the service". Furthermore: "The annual aggregate amount of the assessment shall not exceed the estimated annual cost of providing the service, except that the legislative body may, by resolution, determine that the estimated cost of work authorized ... is greater than can be conveniently raised from a single annual assessment and order that the estimated cost shall be raised by an assessment levied and collected in installments.... The revenue derived from the assessment shall not be used to pay the cost of any service other than the service for which the assessment was levied." The method of apportionment described in this Report for allocation of special benefit assessments utilizes commonly accepted engineering practices in compliance with the provisions of the 1982 Act and the California Constitution. The formulas used for calculating assessments reflects the composition of parcels within the District and the improvements and services provided, to fairly apportion the costs based on the special benefits to each parcel. B. BENEFIT ANALYSIS Each of the proposed improvements and services, and the associated costs and assessments have been carefully reviewed, identified and allocated based on special benefit pursuant to the provisions of the 1982 Act and the California Constitution. The street and storm drain improvements associated with this District were necessary and essential requirements for the orderly development of the properties within the District to their full potential, consistent with the development plans and applicable portions of the City General Plan. As such the ongoing operation, servicing and maintenance of those improvements would otherwise be the direct financial obligation of each individual property owner. Since each parcel to be assessed within the District could not have been developed in the absence of these improvements and facilities, each parcel has a direct investment in the proper maintenance of the improvements that is over and above any general benefits that may be conferred by such improvements and services. The ongoing maintenance and servicing of the District improvements is an integral part of the appearance, use and preservation of the properties within the District and such services to be funded by annual assessments confer a particular and distinct special benefit to those parcels. The proper maintenance of streets and appurtenant facilities allows individual parcels to be used to their fullest extent by ensuring the safe and efficient movement of people and goods to and from the benefiting properties Likewise, the maintenance and servicing of the storm drain system ensures proper water flow and control of excess water during periods of rain, which is essential to preservation and protection of private property. Together the maintenance and servicing of the streets and storm drain system contributes to a specific enhancement of each of the parcels within the District and the absence of adequate maintenance and servicing of the District improvements could eventually have a negative impact on properties within the District. Street&Storm Drain District No. 02 Las Lomas(Woodridge) Engineer's Report—City of Atascadero 5-1 Prepared by NBS—Fiscal Year 2012/13 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 The 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. Equivalent Benefit Units: To assess benefits equitably it is necessary to relate each property's proportional special benefits to the special benefits of the other properties within the District. The method of apportionment established for most districts formed under the 1982 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 the other land uses are converted to a weighted EBU based on an assessment formula that equates the property's specific development status, type of development (land use), and size of the property, as compared to a single-family home site. Although the Equivalent Benefit Unit method of apportioning special benefit is most commonly used and applied to districts that have a wide range of land use classifications (residential and non-residential use), this District is comprised of only residential properties and the following apportionment analysis of special benefit addresses only residential land uses. Not all land use types described in the following are necessarily applicable to the development of properties within this District, but are presented for comparison purposes to support the proportional special benefit applied to those land use types within the District. EBU Application by Land Use: Single-family Residential —This land use is defined as a fully subdivided residential home site with or without a structure. This land use is assessed 1.0 EBU per lot or parcel. This is the base value that the other properties are compared and weighted against(i.e. Equivalent Benefit Unit"EBU"). Multi-family Residential —This land use is defined as a fully subdivided residential parcel that has more than one residential unit developed on the property. (This land use typically includes apartments, duplexes, triplex etc., but does not generally include condominiums, town-homes or mobilehome parks). Street&Storm Drain District No. 02 Las Lomas(Woodridge) Engineer's Report–City of Atascadero 5-2 Prepared by NBS–Fiscal Year 2012/13 Based on average population densities and size of the structure as compared to a typical single-family residential unit, multi-family residential parcels shall be proportionately assessed for the parcel's total number of residential units utilizing a sliding benefit scale. Although multi-family properties typically receive similar benefits to that of a single-family residential, it would not be reasonable to conclude that on a per unit basis, the benefits are equal. Studies have consistently shown that the average multi-family unit impacts infrastructure approximately 75% as much as a single-family residence (Sample Sources: Institute of Transportation Engineers Informational Report Trip Generation, Fifth Edition; Metcalf and Eddy, Wastewater Engineering Treatment, Disposal, Reuse, Third Edition). These various studies indicate that most public improvements and infrastructure are utilized and impacted at reduced levels by multi- family residential units and a similar reduction in proportional benefit is appropriate. Furthermore, it is also reasonable to conclude that as the density(number of units) increases, the proportional benefit per unit tends to decline because the unit size and people per unit usually decreases. Based on these considerations and the improvements provided by this District, an appropriate allocation of special benefit for multi-family residential properties as compared to a single- family residential property 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 the remaining units. Condominium/Town-home Units — Condominiums and town-homes tend to share attributes of both single-family residential and multi-family residential properties and for this reason are identified as a separate land use classification. Like most single-family residential properties, these properties are not usually considered rental property and generally, the County assigns each unit a separate APN or assessment number. However, condominiums and town-homes often have similarities to multi-family residential properties in that they are generally zoned medium to high density and in some cases may involve multiple units on a single APN. In consideration of these factors it has been determined that an appropriate allocation of special benefit for condominiums, town-homes and similar residential properties is best represented by an assignment of 0.75 EBU per unit regardless of whether each unit is assigned an individual APN or there are multiple units assigned to an APN. (There is no adjustment for parcels with more than five units). Planned-Residential Development — This land use is defined as any property for which a tentative or final tract map has been filed and approved (a specific number of residential lots and units has been identified) and the property is expected to be subdivided within the fiscal year or is part of the overall improvement and development plan for the District. This land use classification often times involves more than a single parcel (e.g. the approved tract map encompasses more than a single APN). Each parcel that is part of the approved tract map shall be assessed proportionately for the proposed or estimated residential type and units to be developed on that parcel as part of the approved tract map. Accordingly, each parcel is assigned an appropriate number of benefit units that reflects the development of that property at build-out. (The EBU assigned to each parcel shall represent the combination of single-family, condominium, multi-family units to be developed). Vacant Residential — This land use is defined as property currently zoned for residential development, but a tentative or final tract map for the property has not yet been approved. Based upon the opinions of professional appraisers who appraise market property values for real estate in California, the land value portion of a property typically ranges from 20 to 30 percent of the total value of a developed residential property (the average is about 25 percent). Although the assessed value of an individual property is not 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). Street&Storm Drain District No. 02 Las Lomas(Woodridge) Engineer's Report–City of Atascadero 5-3 Prepared by NBS–Fiscal Year 2012/13 Exempt Parcels — This land use identifies properties that are not assessed and are assigned 0.0 EBU. This land use classification may include but is not limited to: • Lots or parcels identified as public streets and other roadways (typically not assigned an APN by the County); • Dedicated public easements including open space areas, utility rights-of- way, greenbelts, parkways, parks or other publicly owned properties that are part of the District improvements or may provide other benefits to private properties within the District.; • Private properties that cannot be developed independently from an adjacent property, such as common areas, sliver parcels or bifurcated lots or properties with very restrictive development use. These types of parcels are considered to receive little or no benefit from the improvements and are therefore exempted from assessment, but shall be reviewed annually by the assessment engineer to confirm the parcels current development status. Government owned properties or public properties are not necessarily exempt properties and shall be subject to special benefit assessment unless it qualifies for an exempt status. Special Cases— In many districts where multiple land use classifications are involved, there are 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. The following table provides a summary of land use classifications and the Equivalent Benefit Unit calculations previously outlined. Equivalent Benefit Property Type Units Multiplier Single-family Residential 1.00 Per Unit/Lot/Parcel 0.75 Per Unit for the First 50 Units Multi-family Residential 0.50 Per Unit for Units 51-100 0.25 Per Unit for all Remaining Units Condominium/Townhome Units 0.75 Per Unit 1.00 Per Planned SF Residential Lot 0.75 Per Planned Condominium Planned Residential Development 0.75 Per Unit for the First 50 Units 0.50 Per Unit for Units 51-100 0.25 Per Unit for all Remaining Units Vacant Residential Land 1.00 Per Acre Exempt Parcels 0.00 Per Parcel The following formula is used to calculate each parcel's EBU (proportional benefit). Parcel Type EBU x Acres or Units = Parcel EBU The total number of Equivalent Benefit Units (EBU's) is the sum of the 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 the 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. Street&Storm Drain District No. 02 Las Lomas(Woodridge) Engineer's Report–City of Atascadero 5-4 Prepared by NBS–Fiscal Year 2012/13 Total Balance to Levy/Total EBU = Levy per EBU Levy per EBU x Parcel EBU = Parcel Levy Amount D. ASSESSMENT RANGE FORMULA Any new or increased assessment requires certain noticing and meeting requirements by law. Prior to the passage of Proposition 218 (California Constitution Articles XIIIC and XIIID), legislative changes in the Brown Act defined a "new or increased assessment" to exclude certain conditions. These conditions included "any assessment that does not exceed an assessment formula or range of assessments previously adopted by the agency or approved 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 included 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 the 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 from February to February. Beginning with 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, reductions in the proportional special benefit assigned to a land use classifications is permitted. Changes in land use or size of an individual property resulting in an assessment increase, is not considered an increased assessment. To impose a new or increased assessment other than the annual inflationary adjustment provided by the preceding Assessment Range Formula, the City must comply with the provisions of the California Constitution Article XIIID Section 4c, that requires a public 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. Street&Storm Drain District No. 02 Las Lomas(Woodridge) Engineer's Report—City of Atascadero 5-5 Prepared by NBS—Fiscal Year 2012/13 6. ASSESSMENT DIA GRA M The parcels within the Street and Storm Drain Maintenance District No. 02 Las Lomas (Woodridge) consist of the lots, parcels and subdivisions of land located in the residential development known as Las Lomas (Woodridge), Tract 2525-1. The District covers approximately one hundred twenty-two acres (121.65 acres) in the southeast portion of the City of Atascadero. The following District Diagram is based on the San Luis Obispo County Assessor's Maps and the San Luis Obispo County Assessor's information and identifies the parcels of land within the proposed District, as the same existed at the time the District was formed. The combination of this map and the Assessment Roll contained in this Report constitute the District Assessment Diagram. Street&Storm Drain District No. 02 Las Lomas(Woodridge) Engineer's Report—City of Atascadero 6-1 Prepared by NBS—Fiscal Year 2012/13 ASSESSMENT DIAGRAM FOR STREET AND STORM DRAIN MAINTENANCE DISTRICT NO. 2 LAS LOMAS(WOODRIDGE) CITY OF ATASCADERO, COUNTY OF SAN LUIS OBISPO, STATE OF CALIFORNIA v, t I i Lw BOUNDARY MAP OF LANDSCAFING AND LIGHTING DISTRICT NO. 02 (WOOORIDGE) OTY OF ATASC OM C"Tr OF SAN 1.15 09SM w n w oar-A 5TATF OF CAllfQibd A i rove RT�T rM'M!dH�{�!t AVA�1 O lw/OfAl�i r/r,1J01C OAc n s��on a.rao. care a w ua go"aux a CA+ww ra n.� Doan v +� d•r r wo.*A eA-M U99+r aeras. gDA e+ UC F.L.a• �n swLrno zift -� r •' 4k 1� mr .r VICINITY MAP D CID M" 'w r CID MuniFinancial �- n,w rrQ wAti SANTA 2011/2012 Storm Drain Maintenance District No. 2 Page 19 of 24 7. ASSESSMENT ROL L 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: Street&Storm Drain District No. 02 Las Lomas(Woodridge) Engineer's Report—City of Atascadero 7-1 Prepared by NBS—Fiscal Year 2012/13 CITY OF ATASCADERO Street and Storm Drain Maintenance District No. 02 Las Lomas (Woodridge) Fiscal Year 2012/2013 Assessment Roll Assessor's Equivalent Maximum Proposed Parcel Number Benefit Units Assessment Assessment(') 045-311-006 0 $ - $ - 045-311-007 0 - - 045-311-008 0 - - 045-311-009 0 - - 045-311-010 1 613.52 102.00 045-311-013 0 - - 045-311-014 17.77 10,902.25 1,812.54 045-311-015 24.83 15,233.70 2,532.66 045-311-016 19.90 12,209.05 2,029.80 045-312-001 1 613.52 102.00 045-312-002 1 613.52 102.00 045-312-003 1 613.52 102.00 045-312-004 1 613.52 102.00 045-312-005 1 613.52 102.00 045-312-006 1 613.52 102.00 045-312-007 1 613.52 102.00 045-312-008 1 613.52 102.00 045-312-009 1 613.52 102.00 045-312-010 1 613.52 102.00 045-312-011 1 613.52 102.00 045-312-012 1 613.52 102.00 045-312-013 1 613.52 102.00 045-312-014 1 613.52 102.00 045-312-015 1 613.52 102.00 045-312-016 1 613.52 102.00 045-312-017 1 613.52 102.00 045-312-018 1 613.52 102.00 045-312-019 1 613.52 102.00 045-312-020 1 613.52 102.00 045-312-021 1 613.52 102.00 045-312-022 1 613.52 102.00 045-312-023 1 613.52 102.00 045-312-024 1 613.52 102.00 045-312-025 1 613.52 102.00 045-312-026 1 613.52 102.00 045-312-027 1 613.52 102.00 045-312-028 1 613.52 102.00 045-312-029 1 613.52 102.00 045-312-030 1 613.52 102.00 045-312-031 1 613.52 102.00 045-312-032 1 613.52 102.00 045-312-033 1 613.52 102.00 045-312-034 1 613.52 102.00 045-312-035 1 613.52 102.00 045-312-036 1 613.52 102.00 Street and Storm Drain Maintenance District No. 02 Las Lomas(Woodridge)Engineer's Report-City of Atascadero Prepared by NBS-Fiscal Year 2012/13 Assessor's Equivalent Maximum Proposed Parcel Number Benefit Units Assessment Assessment(') 045-312-037 1 613.52 102.00 045-312-038 1 613.52 102.00 045-312-039 1 613.52 102.00 045-312-040 1 613.52 102.00 045-312-041 1 613.52 102.00 045-312-042 1 613.52 102.00 045-312-043 1 613.52 102.00 045-312-044 1 613.52 102.00 045-312-045 1 613.52 102.00 045-312-046 1 613.52 102.00 045-312-047 1 613.52 102.00 045-312-048 1 613.52 102.00 045-312-049 1 613.52 102.00 045-312-050 1 613.52 102.00 045-312-051 1 613.52 102.00 045-312-052 1 613.52 102.00 045-312-053 1 613.52 102.00 045-312-054 1 613.52 102.00 045-312-055 1 613.52 102.00 045-312-056 1 613.52 102.00 045-313-001 1 613.52 102.00 045-313-002 1 613.52 102.00 045-313-003 1 613.52 102.00 045-313-004 1 613.52 102.00 045-313-005 1 613.52 102.00 045-313-006 1 613.52 102.00 045-313-007 1 613.52 102.00 045-313-008 1 613.52 102.00 045-313-009 1 613.52 102.00 045-313-010 1 613.52 102.00 045-313-011 1 613.52 102.00 045-313-012 1 613.52 102.00 045-313-013 1 613.52 102.00 045-313-014 1 613.52 102.00 045-313-015 1 613.52 102.00 045-313-016 1 613.52 102.00 045-313-017 1 613.52 102.00 045-313-018 1 613.52 102.00 045-313-019 1 613.52 102.00 045-313-020 1 613.52 102.00 045-313-021 1 613.52 102.00 045-314-001 1 613.52 102.00 045-314-002 1 613.52 102.00 045-314-003 1 613.52 102.00 045-314-004 1 613.52 102.00 045-314-005 1 613.52 102.00 045-314-006 1 613.52 102.00 045-314-007 1 613.52 102.00 045-314-008 1 613.52 102.00 045-314-009 1 613.52 102.00 Street and Storm Drain Maintenance District No. 02 Las Lomas(Woodridge)Engineer's Report-City of Atascadero Prepared by NBS-Fiscal Year 2012/13 Assessor's Equivalent Maximum Proposed Parcel Number Benefit Units Assessment Assessment(') 045-314-010 1 613.52 102.00 045-314-011 1 613.52 102.00 045-314-012 1 613.52 102.00 045-314-013 1 613.52 102.00 045-314-014 1 613.52 102.00 045-314-015 1 613.52 102.00 045-314-016 1 613.52 102.00 045-314-017 1 613.52 102.00 045-314-018 1 613.52 102.00 045-314-019 1 613.52 102.00 045-314-020 1 613.52 102.00 045-314-021 1 613.52 102.00 045-314-022 1 613.52 102.00 045-314-023 1 613.52 102.00 045-314-024 1 613.52 102.00 045-314-025 1 613.52 102.00 045-314-026 1 613.52 102.00 045-314-027 1 613.52 102.00 045-314-028 1 613.52 102.00 045-314-029 1 613.52 102.00 045-314-030 1 613.52 102.00 045-314-031 1 613.52 102.00 045-314-032 1 613.52 102.00 045-314-033 1 613.52 102.00 045-315-001 1 613.52 102.00 045-315-002 1 613.52 102.00 045-315-003 1 613.52 102.00 045-315-004 1 613.52 102.00 045-315-005 1 613.52 102.00 045-315-006 1 613.52 102.00 045-315-007 1 613.52 102.00 045-315-008 1 613.52 102.00 045-315-009 1 613.52 102.00 045-315-010 1 613.52 102.00 045-315-011 1 613.52 102.00 045-315-012 1 613.52 102.00 045-315-013 1 613.52 102.00 045-315-014 1 613.52 102.00 045-315-015 1 613.52 102.00 045-315-016 1 613.52 102.00 045-315-017 1 613.52 102.00 045-315-018 1 613.52 102.00 045-315-019 1 613.52 102.00 045-315-020 1 613.52 102.00 045-315-021 1 613.52 102.00 045-315-022 1 613.52 102.00 045-315-023 1 613.52 102.00 045-315-024 1 613.52 102.00 045-315-025 1 613.52 102.00 045-315-026 1 613.52 102.00 Street and Storm Drain Maintenance District No. 02 Las Lomas(Woodridge)Engineer's Report-City of Atascadero Prepared by NBS-Fiscal Year 2012/13 Assessor's Equivalent Maximum Proposed Parcel Number Benefit Units Assessment Assessment(') 045-315-027 1 613.52 102.00 045-315-028 1 613.52 102.00 045-315-029 1 613.52 102.00 045-315-030 1 613.52 102.00 045-315-031 1 613.52 102.00 045-315-032 1 613.52 102.00 045-315-033 1 613.52 102.00 045-316-001 0 - - 045-316-002 0 - - 045-316-003 0 - - 045-316-004 0.75 460.14 76.50 045-316-005 0.75 460.14 76.50 045-316-006 0.75 460.14 76.50 045-316-007 0.75 460.14 76.50 045-316-008 0.75 460.14 76.50 045-316-009 0.75 460.14 76.50 045-316-010 0.75 460.14 76.50 045-316-011 0.75 460.14 76.50 045-316-012 0.75 460.14 76.50 045-316-013 0.75 460.14 76.50 045-316-014 0.75 460.14 76.50 045-316-015 0.75 460.14 76.50 045-316-016 0.75 460.14 76.50 045-316-017 0.75 460.14 76.50 045-316-018 0.75 460.14 76.50 045-316-019 0.75 460.14 76.50 045-316-020 0.75 460.14 76.50 045-316-021 0.75 460.14 76.50 045-316-022 0.75 460.14 76.50 045-316-023 0.75 460.14 76.50 045-316-024 0.75 460.14 76.50 045-316-025 0.75 460.14 76.50 045-316-026 0.75 460.14 76.50 045-316-027 0.75 460.14 76.50 045-316-028 0.75 460.14 76.50 045-316-029 0.75 460.14 76.50 045-316-030 0.75 460.14 76.50 045-316-031 0.75 460.14 76.50 045-316-032 0.75 460.14 76.50 045-316-033 0.75 460.14 76.50 045-316-034 0.75 460.14 76.50 045-316-035 0.75 460.14 76.50 045-316-036 0.75 460.14 76.50 045-316-037 0.75 460.14 76.50 045-316-038 0.75 460.14 76.50 Totals 232.75 $ 142,796.78 $ 23,740.50 (1)Slight variance in charge or total budget are due to rounding for placement on the tax rolls. Street and Storm Drain Maintenance District No. 02 Las Lomas(Woodridge)Engineer's Report-City of Atascadero Prepared by NBS-Fiscal Year 2012/13 ITEM NUMBER: A- 5 DATE: 05/08/12 Attachment 5 DRAFT RESOLUTION D RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ATASCADERO, CALIFORNIA, INITIATING PROCEEDINGS FOR ANNUAL LEVY OF ASSESSMENTS FOR THE ATASCADERO LANDSCAPING AND LIGHTING MAINTENANCE DISTRICT NO. 02 (WOODRIDGE) FOR FISCAL YEAR 2012/2013 PURSUANT TO THE PROVISIONS OF PART 2 OF DIVISION 15 OF THE CALIFORNIA STREETS AND HIGHWAYS CODE. The City Council of the City of Atascadero (hereafter referred to as "City Council") hereby finds, determines,resolves and orders as follows: WHEREAS, the City Council has, by previous Resolutions, formed the Atascadero Landscaping and Lighting Maintenance District No. 02 (Woodridge) (hereafter referred to as "District") pursuant to the provisions of the Landscaping and Lighting Act of 1972, Part 2 of Division 15 of the Streets and Highways Code of California, beginning with Section 22500 (hereafter referred to as the "Act") that provides for levy and collection of assessments by the County of San Luis Obispo for the City of Atascadero to pay the maintenance and services of lighting facilities, landscaping, and appurtenant facilities and operations related thereto; and, WHEREAS, the District and the associated assessments are in compliance with the provisions of California Constitution Article XIIID; and, WHEREAS, the City Council has retained NBS for the purpose of assisting with the Annual Levy of the District and to prepare and file a report with the City Clerk in accordance with the Act; NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Atascadero as follows: SECTION 1. Engineer's Annual Levy Report: The City Council hereby orders NBS to prepare the Engineer's Annual Levy Report concerning the levy of assessments for the District in accordance with Chapter 3, Section 22622 of the Act. SECTION 2. Proposed Improvements and Any Substantial Changes in Existing Improvements: The improvements within the District 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 Act that were installed as part of property development and associated with the District. Said improvements may include, but are not limited to the materials, equipment, utilities, labor, appurtenant facilities and expenses necessary for the ongoing maintenance and operation of public street lighting as well as landscaped parkways, medians, slopes, trails, park areas, drainage basins, open space areas and other designated easements or right-of-ways constructed and installed as part of the development ITEM NUMBER: A- 5 DATE: 05/08/12 Attachment 5 plans and agreements approved for the development of each lot and parcel within the District. The Engineer's Annual Levy Report describes any new improvements or substantial changes in existing improvements. 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: Bob Kelley, Mayor ATTEST: Marcia McClure Torgerson, C.M.C., City Clerk APPROVED AS TO FORM: Brian A. Pierik, City Attorney ITEM NUMBER: A- 5 DATE: 05/08/12 Attachment 6 DRAFT RESOLUTION E RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ATASCADERO, CALIFORNIA, FOR PRELIMINARY APPROVAL OF THE ENGINEER'S ANNUAL LEVY REPORT FOR THE ATASCADERO LANDSCAPING AND LIGHTING MAINTENANCE DISTRICT NO. 02 (WOODRIDGE) FOR FISCAL YEAR 2012/2013. The City Council of the City of Atascadero (hereafter referred to as "City Council") does resolve as follows: WHEREAS, the City Council has, by previous Resolutions, ordered the preparation of an Engineer's Annual Levy Report (hereafter referred to as the "Report") for the district known and designated as the Atascadero Landscaping and Lighting Maintenance District No. 02 (Woodridge) (hereafter referred to as the "District") pursuant to the provisions of the Landscaping and Lighting Act of 1972, Part 2 of Division of the Streets and Highways Code of California, beginning with Section 22500 (hereafter referred to as the "Act"); and, WHEREAS, the District and the associated assessments are in compliance with the provisions of California Constitution Article XIIID; and, WHEREAS, the City Council has now been presented with the Report as required by Chapter 1, Article 4, Section 22566 of said Act; and, WHEREAS, the City Council has carefully examined and reviewed the Report as presented and is preliminarily satisfied with the Report, each of the budget items and documents as set forth therein and is satisfied on a preliminary basis that the proposed assessments have been spread in accordance with the benefits received from the improvements, operation, maintenance, and services to be performed within each benefit zone as set forth in said Report; NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Atascadero as follows: SECTION 1. The above recitals are true and correct. SECTION 2. That the presented Report consists of the following: a. A Description of the Improvements b. The Annual Budget(Costs and Expenses of Services, Operation, and Maintenance) c. The Method of Apportionment that details the method of calculating each parcel's proportional special benefits and annual assessment. d. The District Roll containing the proposed assessment for each parcel within the District for Fiscal Year 2012/2013. ITEM NUMBER: A- 5 DATE: 05/08/12 Attachment 6 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. That 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. 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: Bob Kelley,Mayor ATTEST: Marcia McClure Torgerson, C.M.C., City Clerk APPROVED AS TO FORM: Brian A. Pierik, City Attorney ITEM NUMBER: A- 5 DATE: 05/08/12 Attachment 7 DRAFT RESOLUTION F RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ATASCADERO, CALIFORNIA, DECLARING ITS INTENTION TO LEVY AND COLLECT ASSESSMENTS FOR THE ATASCADERO LANDSCAPING AND LIGHTING MAINTENANCE DISTRICT NO. 02 (WOODRIDGE) FOR FISCAL YEAR 2012/2013. The City Council of the City of Atascadero (hereafter referred to as "City Council") does resolve as follows: WHEREAS, The City Council has by previous Resolution initiated proceedings for fiscal year 2012/2013 regarding the levy and collection of assessments for the Atascadero Landscaping and Lighting District No. 02 (Woodridge) (hereafter referred to as the "District"). Pursuant to the provisions of the Landscaping and Lighting Act of 1972, Part 2, Division 15 of the California Streets and Highways Code (commencing with section 22500) (hereafter referred to as the "Act"), assessments for the District shall be levied and collected by the County of San Luis Obispo for the City of Atascadero to pay the maintenance and services of the improvements and facilities related thereto; and, WHEREAS, the proposed District assessments for fiscal year 2012/2013 are less than or equal to the maximum assessments previously approved in accordance with the requirements of the California Constitution,Article X1II1); and, WHEREAS, there has now been presented to this City Council an Engineer's Annual Levy Report (hereafter referred to as the "Engineer's Report"), and said Engineer's Report has been filed with the City Clerk in accordance with the Act; and, WHEREAS, the City Council has examined and reviewed the Engineer's Report as presented and is satisfied with the Report, each of the budget items and documents as set forth therein and is satisfied that the proposed assessments contained therein, have been spread in accordance with the benefits received from the improvements, operation, 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 pursuant to Chapter 3, Section 22624 of the Act, as follows: SECTION 1. The above recitals are true and correct. SECTION 2. The City Council hereby declares its intention to seek the annual levy and collection of assessments within the District pursuant to the Act, over and including the lands, lots and parcels within the District boundary. The City Council further declares its intention to levy and collect assessments on such land to pay the annual costs and expenses of the improvements and services described in Section 4 of this Resolution, for fiscal year 2012/2013. ITEM NUMBER: A- 5 DATE: 05/08/12 Attachment 7 SECTION 3. The boundaries of the District are described in the Engineer's Report and are consistent with the boundary established and described in the original formation documents, on file with the City Clerk, and incorporated herein by reference. The District is within the boundaries of the City of Atascadero, within the County of San Luis Obispo, State of California and includes the territory known as Woodridge and referred to as the"Atascadero Landscaping and Lighting District No. 02". SECTION 4. The improvements within the District include the ongoing maintenance, operation and servicing of local landscaping and street lighting improvements established or installed in connection with development of properties within the District. These improvements generally include, but are not limited to the materials, equipment, utilities, labor, appurtenant facilities and expenses necessary for the ongoing maintenance and operation of public street lighting as well as landscaped parkways, medians, slopes, trails, park areas, drainage basins, open space areas and other designated easements or right-of-ways constructed and installed as part of the development plans and agreements approved for the development of each lot and parcel within the District. SECTION 5. The proposed assessments for fiscal year 2012/2013, as outlined in the Engineer's Report, do not exceed the maximum assessment approved by the property owners through a property owner balloting proceeding conducted in 2005. As such, the proposed assessments do not constitute an increased assessment and do not require additional property owner approval in accordance with the requirements of the California Constitution, Article XIIID. SECTION 6. The City Council hereby declares its intention to conduct a Public Hearing concerning the District and the levy of assessments in accordance with Chapter 3, Section 22626 of the Act. SECTION 7. Notice is hereby given that a Public Hearing on these matters will be held by the City Council on Tuesday, June 12, 2012, at 6:00 p.m., at the City Council Chambers, 6907 El Camino Real, Atascadero, California or as soon thereafter as feasible. SECTION 8. The City Council hereby authorizes and directs the City Clerk to give notice of the time and place of the Public Hearing to all property owners within the District pursuant to Sections 22626, 22552 and 22553 of the Act and 6061 of the Government Code. The City Clerk shall give notice to all property owners by: causing notice of the public hearing to be published in the local newspaper one time at least 10 days prior to the Public Hearing; and,posting a copy of this resolution on the official bulletin board(s)customarily used for posting such notices. ITEM NUMBER: A- 5 DATE: 05/08/12 Attachment 7 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: Bob Kelley,Mayor ATTEST: Marcia McClure Torgerson, C.M.C., City Clerk APPROVED AS TO FORM: Brian A. Pierik, City Attorney helping communities fund tomorrow City of Atascadero Annual Engineer's Report Landscaping and Lighting District No. 02 Las Lomas (Woodridge) Fiscal Year 2012/13 Main Office 32605 Temecula Parkway, Suite 100 Temecula, CA 92592 Toll free: 800.676.7516 Fax: 951.296.1998 Regional Office 870 Market Street, Suite 1223 San Francisco, CA 94102 Toll free: 800.434.8349 Fax: 415.391.8439 CITY OF ATASCADERO Landscaping & Lighting District No. 02 Las Lomas (Woodridge) 6907 EI Camino Real Atascadero, CA 93422 Phone — (805) 461-5000 Fax — (805) 461-7612 CITY COUNCIL Bob Kelley, Mayor Tom O'Malley, Mayor Pro Tem Brian Sturtevant, Council Member Jerry Clay, Sr., Council Member Roberta Fonzi, Council Member AGENCY STAFF Wade G. McKinney, City Manager James R. Lewis, Assistant City Manager Rachelle Rickard, Administrative Services Director Jeri Rangel, Assistant Administrative Services Director NBS Danielle Wood, Client Services Director Adina Vazquez, Senior Consultant TABLE OF CONTENTS 1. ENGINEER'S LETTER 1-1 2. EXECUTIVE SUMMARY 2-1 3. PLANS AND SPECIFICATIONS 3-1 A. DESCRIPTION OF THE DISTRICT.............................................................. 3-1 B. IMPROVEMENTS AND SERVICES AUTHORIZED BY THE 1972 ACT ...... 3-1 C. DESCRIPTION OF IMPROVEMENTS AND SERVICES.............................. 3-2 4. ESTIMATE OF COSTS 4-1 5. METHOD OF ASSESSMENT 5-1 A. GENERAL.................................................................................................... 5-1 B. BENEFIT ANALYSIS.................................................................................... 5-1 C. ASSESSMENT METHODOLOGY................................................................ 5-3 D. ASSESSMENT RANGE FORMULA............................................................. 5-6 6. ASSESSMENT DIAGRAM 6-1 7. ASSESSMENT ROLL 7-1 Landscaping &Lighting District No. 02 Las Lomas(Woodridge) Engineer's Report—City of AtascaderoTable of Contents Prepared by NBS—Fiscal Year 2012/13 1. ENGINEER'S LETTER WHEREAS, on March 24, 2005 by Resolution No. 2005-051, the City Council of the City of Atascadero (the "City"), State of California, in accordance with and pursuant to the Landscape and Lighting Act of 1972, Part 2, Division 15 of the California Streets and Highways Code (commencing with Section 22500 (the "1972 Act") established the City of Atascadero Landscaping and Lighting District No. 02 Las Lomas (Woodridge) (the "District"); and WHEREAS, on May 8, 2012, the City Council, under the 1972 Act, adopted its Resolution Initiating Proceedings for the Annual Levy of Assessments and Ordering the Preparation of an Engineer's Report for the District; and WHEREAS, the Resolution Initiating Proceedings directed NBS to prepare and file a report describing the general nature, location, and extent of the improvements to be maintained; an estimate of the costs of the maintenance, operations, and servicing of the improvements for the District for the referenced fiscal year; a diagram for the District, showing the area and properties to be assessed; and an assessment of the estimated costs of the administration, maintenance, operations, and servicing the improvements, assessing the net amount upon all assessable lots and/or parcels within the District in proportion to the special benefit received. NOW THEREFORE, the assessments as detailed in this Engineer's Report and as summarized in the table below are made to cover the portion of the estimated costs of maintenance, operation and servicing of the improvements to be paid by the assessable real property within the District in proportion to the special benefit received. The following table summarizes the proposed assessment for Fiscal Year 2012/13: FY 2012/13 Budget Summary 2012/13 Total Proposed Total Costs Not Proposed Benefit Maximum Rate Per Description Costs Assessed Assessment Units Rate BU Annual Maintenance $80,050 $2,068 $78,303 Administration 6,184 0 6,184 Levy Adjustments 4,583 2,068 2,836 Total 1 $81,652 $0 $81,6521 232.75 $1,523.56 $350.81 I, the undersigned, respectfully submit the enclosed Engineer's Report and, to the best of my knowledge, information, and belief, the Engineer's Report, Assessments, and the Assessment Diagram herein have been prepared, computed, and levied in accordance with the assessment methodology adopted, approved, and ordered by the City Council of the City of Atascadero and the 1972 Act. NBS Landscaping & Lighting District No. 02 Las Lomas(Woodridge)Engineer's Report—City of Atascadero 1-1 Prepared by NBS—Fiscal Year 2012/13 2. EXECUTIVE SUMMARY Pursuant to the provisions of the Landscaping 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 "Article XIIID"), the City Council of the City of Atascadero, County of San Luis Obispo, State of California (hereafter referred to as "City"), executed the proceedings required for the establishment of the special benefit assessment district designated as: Landscaping and Lighting District No. 02 Las Lomas (Woodridge) (hereafter referred to as the "District"), which includes the lots and parcels of land within the residential subdivision known as Las Lomas (Woodridge), Tract 2525-1 within the City limits of the City. This Engineer's Report (hereafter referred to as the "Report") has been prepared in connection with the levy and collection of annual assessments related thereto for fiscal year 2012/2013, as required pursuant to Chapter 1, Article 4 of the 1972 Act. The City Council formed the District, and provided for the levy and collection of 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 Article XIIID. This Report describes the District, the improvements, and the proposed assessments to be levied against properties in connection with the special benefits the properties will receive from the maintenance and servicing of the District improvements. The annual assessments will provide a funding source 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 boundaries of the District, the proposed improvements, the method of apportionment, and assessments described herein are based on current development plans and specifications for Tract 2525-1; and by reference these plans and specifications are made part of this Report. 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 the District formation, the City of Atascadero conducted 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 conducted a noticed public hearing on May 24, 2005 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 were opened and tabulated to determine whether majority protest existed (ballots were weighted based on assessment amounts), and by resolution the City Council confirmed the results of the ballot tabulation. Tabulation of the ballots indicated that majority protest did not exist for the proposed assessments and the assessment range formula presented and described herein, the City Council approved the Report (as submitted or amended), ordered the formation of the District, and approved the levy and collection of assessments. Landscaping & Lighting District No. 02 Las Lomas(Woodridge)Engineer's Report—City of Atascadero 2-1 Prepared by NBS—Fiscal Year 2012/13 The assessments for fiscal year 2005/2006 were 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. Landscaping & Lighting District No. 02 Las Lomas(Woodridge)Engineer's Report—City of Atascadero 2-2 Prepared by NBS—Fiscal Year 2012/13 3. PLA NS A ND SPECIFI CA TIONS A. DESCRIPTION OF THE DISTRICT The territory within the District consists of the lots, parcels and subdivisions of land within the proposed residential subdivision known as the Las Lomas (Woodridge), Tract 2525-1, which encompasses an area of land totaling approximately one hundred twenty-two acres (121.65 acres). This residential subdivision is planned to include one hundred forty-four (144) single-family residential units; thirty-five (35) condominium/senior housing units; and a single one hundred (100) unit multi-family residential project at build-out. Due to parcel splits the multi-family residential project is spread over three parcels. The planned subdivision is situated in the southeast portion of the City of Atascadero and is generally located: • South and east of Halcon Road; • East of Highway 101 and EI Camino Real • South and west of the Southern Pacific Railroad Tracks; and • North of Salinas Road and Santa Cruz Road B. IMPROVEMENTS AND SERVICES AUTHORIZED BY THE 1972 ACT As generally defined by the 1972 Act 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: 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; Landscaping & Lighting District No. 02 Las Lomas(Woodridge)Engineer's Report—City of Atascadero 3-1 Prepared by NBS—Fiscal Year 2012/13 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. C. DESCRIPTION OF IMPROVEMENTS AND SERVICES The purpose of this District is to ensure the ongoing maintenance, operation and servicing of local landscaping and street lighting improvements established or installed in connection with development of properties within the District. The improvements may consist of all or a portion of the public landscaped areas, street lighting and appurtenant facilities within and adjacent to the District (Tract 2525-1). These improvements generally include, but are not limited to the materials, equipment, utilities, labor, appurtenant facilities and expenses necessary for the ongoing maintenance and operation of public street lighting as well as landscaped parkways, medians, slopes, trails, park areas, drainage basins, open space areas and other designated easements or right-of-ways constructed and installed as part of the development plans and agreements approved for the development of each lot and parcel within the District. The improvements to be maintained and funded entirely or partially through the District assessments are generally described as: • Streetscape landscaping including street trees located on the perimeter of the development and interior streets of Tract 2525-1 that are within the public right-of-ways or easements and dedicated to the City for maintenance; • Open space areas and fuel modification areas within or adjacent to the District boundaries; • Park areas, recreational equipment, trails and landscaped drainage facilities developed and constructed as part of developing properties within Tract 2525-1; • Public lighting facilities including street lighting, safety lighting and ornamental lighting installed as part of the residential development or landscaped improvement areas; • Appurtenant facilities, equipment, materials and utilities related to the aforementioned improvements; • Specifically not included as District improvements are those improvements located on private property, improvements and facilities that may be provided or maintained by an agency other than the City; improvements and facilities that may be provide by another assessment or tax levied by the City or any improvement provided and maintained by a Homeowner's Association or similar entity. Detailed maps and descriptions of the location and extent of the specific improvements to be maintained by the District are on file in the Office of Public Works and by reference are made part of this Report. Those portions of the District improvements that may be identified as general Landscaping & Lighting District No. 02 Las Lomas(Woodridge)Engineer's Report—City of Atascadero 3-2 Prepared by NBS—Fiscal Year 2012/13 benefit or will be funded in whole or in part by other revenue sources as part of the approved development agreements, will not be included as part of the District assessments. The net annual cost to provide and maintain the improvements determined to be of special benefit shall be allocated to each property in proportion to the special benefits received. Landscape Improvements The landscape improvements for the District may include, but are not limited to turf, ground cover, shrubs and plants, trees, irrigation and drainage systems, ornamental lighting, masonry walls or other fencing, hardscape improvements, monuments, and associated appurtenant facilities located within the landscape easements or public right-of-ways. Specifically the landscape improvement areas for this District are identified as: • Approximately 34,420 square feet of streetscape landscaping and trees within the public right- of-ways along or adjacent to Halcon Road, Calle Milano, Via Cielo and Eliano Street including but not limited to approximately 27,200 square feet of parkway landscaping and 7,220 square feet of median landscaping; • Approximately 220,850 square feet (5.07 acres) of landscaped slope areas within the District boundaries and adjacent to the residential properties, open space areas, drainage basins and streets of Tract 2525-1; • Approximately 175,550 square feet (4.03 acres) of landscaped area in and around the two (2) drainage basins within Tract 2525-1; • Approximately 106,460 square feet of non-irrigated open space area within the District; • Approximately 1,981,980 square feet of non-irrigated open space area within the boundaries of the District associated with the development of the residential properties within Tract 2525-1; • Approximately 225 street trees located within the public right-of-ways of the streets within Tract 2525-1 including but not limited to Calle Milano, Via Cielo, Eliano Street, Avion Road, Azor Lane and Alcotan Lane; • Approximately 1,910 square feet of paths and trails, 45,265 square feet sidewalks and 6,100 linear feet of fencing within and adjacent to the various landscape improvement areas. Public Lighting Improvements The lighting improvements may include but are not limited to the cost of providing electrical energy and servicing of lighting fixtures, poles, meters, conduits, electrical cable and associated appurtenant facilities associated with: • There are five (5) public streetlights currently planned for Tract 2525-1. These streetlights are located on Calle Milano between Halcon Road and Eliano Street (The entryway to the residential properties within the District); • Lighting facilities may also include but are not limited to safety lights, security lights or ornamental lights located within the various landscape improvement areas installed as part of the District's landscape improvements. Landscaping & Lighting District No. 02 Las Lomas(Woodridge)Engineer's Report—City of Atascadero 3-3 Prepared by NBS—Fiscal Year 2012/13 4. ESTIMATE OF COSTS Costs Not Fiscal Year BUDGET Total Budget Assessed 2012/2013 DIRECT COSTS Annual Maintenance Landscape Services $43,740 $1,747 $41,993 Landscape Supplies 1,100 - 1,100 Landscape Utilities 6,880 - 6,880 City Landscape Services 23,890 - 23,890 Special Projects 4,440 - 4,440 Total Annual Direct Costs $80,050 $1,747 $78,303 ADMINISTRATION EXEPNSES Annual Administration Expenses City Annual Administration $620 $ - $620 Engineer's Report&Services 4,720 - 4,720 County Administration Fee 364 - 364 Public Noticing 480 - 480 Total Annual Administration Costs $6,184 $- $6,184 TOTAL DIRECT&ADMINISTRATION COSTS $86,234 $1,747 $84,487 CAPITAL RESERVE COLLECTIONS/(USES) Landscape Rehabilitation/Replacement $3,128 $- $3,128 Median Rehabilitation/Replacement 138 - 138 Open Space Rehabilitation/Replacement 1,284 321 963 Tree Rehabilitation/Replacement 5,806 - 5,806 Slope Rehabilitation/Replacement 3,754 - 3,754 Other Rehabilitation/Replacement 741 - 741 Use of Reserves - - - Total Annual Capital Reserve Collections/(Uses) $14,851 $321 $14,530 LEVY ADJUSTMENTS Interest Income-Improvement Fund $(908) $- $(908) Interest Income-Operating Reserve Fund 2,043 110 1,933 Operating Reserve Fund Collection (Use) (16,483) (1,958) (14,525) Total Levy Adjustments $(19,434) $(2,068) $(17,366) BALANCE TO LEVY $81,652 $- $81,652 DISTRICT STATISTICS Total Parcels 190 Parcels Levied 182 Total EBU 232.75 Levy per EBU $350.81 Maximum Levy per EBU $1,523.56 FUND BALANCE INFORMATION Beginning Operating Reserve Balance $9,339 $142,335 Operational Reserve Interest 110 1,933 Operational Reserve Collection (Use) (2,068) (17,366) Estimated Ending Operating Reserve Balance $7,381 $126,902 Beginning Improvement Fund Balance $45,221 Improvement Fund Interest 908 Improvement Fund Collection (Use) 14,851 Estimated Ending Improvement Fund Balance $60,980 Landscaping & Lighting District No. 02 Las Lomas(Woodridge)Engineer's Report-City of Atascadero 4-1 Prepared by NBS-Fiscal Year 2012/13 5. METHOD OF ASSESSMENT 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 Article XIIID. 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 1972 Act and Article XIIID. The improvements provided by this District and for which properties will be assessed have been identified as necessary, required and/or desired for the orderly development of the properties within the District to their full potential, consistent with the development plans and applicable portions of the City General Plan. As such, these improvements would be necessary and required of individual property owners for the development of such properties and the ongoing operation, servicing and maintenance of these improvements would be the financial obligation of those properties. Therefore, the improvements and the annual costs of ensuring the maintenance and operation of the improvements are a distinct and special benefit to the properties within the District. Any improvement or portion thereof that is considered to be of general benefit shall be funded by other revenue sources and not included as part of the special benefit assessments allocated to properties within the District. Special Benefit The method of apportionment (method of assessment) established herein is based on the premise that each assessed parcel within the District receives special benefits from the improvements and the desirability and security of those properties is enhanced by the presence of public lighting and well- maintained landscaping in close proximity to those properties. The special benefits associated with landscape improvements are specifically: • Enhanced desirability of properties through association with the improvements. • Improved aesthetic appeal of properties providing a positive representation of the area and properties. • Enhanced adaptation of the urban environment within the natural environment from adequate green space and landscaping. Landscaping & Lighting District No. 02 Las Lomas(Woodridge)Engineer's Report—City of Atascadero 5-1 Prepared by NBS—Fiscal Year 2012/13 • Environmental enhancement through improved erosion resistance, dust and debris control, and fire prevention. • Increased sense of pride in ownership of property within the District resulting from well- maintained improvements associated with the properties. • Enhanced quality of life through well-maintained green space and landscaped areas. • Reduced criminal activity and property-related crimes (especially vandalism) against properties in the District through well-maintained surroundings and amenities including abatement of graffiti. • Enhanced environmental quality of the parcels by moderating temperatures, providing oxygenation and attenuating noise. The special benefits of street lighting and other public lighting facilities are the convenience, safety, and security of property, improvements, and goods. Specifically: • Enhanced deterrence of crime and the aid to police protection. • Increased nighttime safety on roads, streets and public areas. • Improved ability of pedestrians and motorists to see. • Improved ingress and egress to property. • Reduced vandalism and other criminal act and damage to improvements or property. • Improved traffic circulation and reduced nighttime accidents and personal property loss. The preceding special benefits contribute to the esthetic value and desirability of each of the assessed parcels within the District and thereby provide a special enhancement of the properties. Furthermore, it has been determined that the lack of funding to properly service and maintain the District improvements would have a negative impact on the properties within the District. General Benefit In reviewing each of the District improvements, the proximity of those improvements to both properties within the District and those outside the District as well as the reasons for installing and constructing such improvements, it is evident that the improvements are solely the result of developing properties within the District and the ongoing maintenance and operation of these improvements will directly effect the properties within the District. Although the improvements include public areas, easements, right-of-ways and other amenities available or visible to the public at large, the construction and installation of these improvements (except portions of the open space areas) were only necessary for the development of properties within the District and were not required nor necessarily desired by any properties or developments outside the District boundary and any public access or use of the improvements by others is incidental. Therefore, it has been determined that the improvements and the ongoing maintenance, servicing and operation of those improvements provide no measurable general benefit to properties outside the District or to the public at large, but clearly provide distinct and special benefits to properties within the District. With respect to the open space areas, these areas are an integral part of property development within the District and clearly provide a direct and special benefit those properties. However, it is also recognized that the majority of this open space area is located on the perimeter of the District and is directly accessible from surrounding properties and the public at large. Therefore it has been determined that up to twenty-five percent (25%) of the costs to maintain this area shall be allocated as general benefit and not assessed as part of the District's special benefit assessments. Landscaping & Lighting District No. 02 Las Lomas(Woodridge)Engineer's Report—City of Atascadero 5-2 Prepared by NBS—Fiscal Year 2012/13 C. ASSESSMENT METHODOLOGY The method of apportionment for the District calculates the receipt of special benefit from the respective improvements based on the actual or proposed land use of the parcels within the District. The special benefit received by each lot or parcel is equated to the overall land use of parcels within the District based on the parcel's actual land use or proposed development. The costs associated with the improvements shall be fairly distributed among the parcels based upon the special benefit received by each parcel. Additionally, in compliance with the Article XIIID Section 4, each parcel's assessment may not exceed the reasonable cost of the proportional special benefit conferred to that parcel. The benefit formula used to determine the assessment obligation is therefore based upon both the improvements that benefit the parcels within the District as well as the proposed land use of each property as compared to other parcels that benefit from those specific improvements. To identify and determine the special benefit to be received by each parcel and their proportionate share of the improvement costs it is necessary to consider the entire scope of the planned improvements as well as individual property development within the District. Upon review of the proposed improvements it has been determined that each of the residential parcels within the District receives special benefits from the improvements to be funded by annual assessments and based on the planned property development a single zone of benefit is appropriate for the allocation of the assessments and proportional benefit. Equivalent Benefit Units: To assess benefits equitably it is necessary to relate each property's proportional special benefits to the special benefits of the other properties within the District. The method of apportionment established for most districts formed under the 1972 Act utilizes a weighted method of apportionment known as an Equivalent Benefit Unit 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 the other land uses are converted to a weighted EBU based on an assessment formula that equates the property's specific development status, type of development (land use), and size of the property, as compared to a single-family home site. Although the Equivalent Benefit Unit method of apportioning special benefit is most commonly used and applied to districts that have a wide range of land use classifications (residential and non- residential use), this District is comprised of only residential properties and the following apportionment analysis of special benefit addresses only residential land uses. Not all land use types described in the following are necessarily applicable to the development of properties within this District, but are presented for comparison purposes to support the proportional special benefit applied to those land use types within the District. Single-family Residential — This land use is defined as a fully subdivided residential home site with or without a structure. This land use is assessed 1.00 EBU per lot or parcel. This is the base value that the other properties are compared and weighted against regarding special benefit. Multi-family Residential — This land use is defined as a fully subdivided residential parcel that has more than one residential unit developed on the property. (This land use typically includes apartments, duplexes, triplex etc., but does not generally include condominiums, town-homes or mobile home 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 Landscaping & Lighting District No. 02 Las Lomas(Woodridge)Engineer's Report–City of Atascadero 5-3 Prepared by NBS–Fiscal Year 2012/13 Treatment, Disposal, Reuse, Third Edition). These various studies indicate that most public improvements and infrastructure are utilized and impacted at reduced levels by multi-family residential units and a similar reduction in proportional benefit is appropriate. Furthermore, it is also reasonable to conclude that as the density (number of units) increases the proportional benefit per unit tends to decline because the unit size and people per unit usually decreases. Based on these considerations and the improvements provided by this District, an appropriate allocation of special benefit for multi-family residential properties as compared to a single- family residential is best represented by the following special benefit assignment: 0.75 EBU per unit for the first 50 units; 0.50 EBU per unit for units 51 through 100; and 0.25 EBU per unit for remaining units. Condominium/Town-home Units — Condominiums and town-homes tend to share attributes of both single-family residential and multi-family residential properties and for this reason are identified as a separate land use classification. Like most single-family residential properties, these properties are not usually considered rental property and generally, the County assigns each unit a separate APN or assessment number. However, condominiums and town-homes often have similarities to multi-family residential properties in that they are generally zoned medium to high density and in some cases may involve multiple units on a single APN. In consideration of these factors it has been determined that an appropriate allocation of special benefit for condominiums, town-homes and similar residential properties is best represented by an assignment of 0.75 EBU per unit regardless of whether each unit is assigned an individual APN or there are multiple units assigned to an APN. (There is no adjustment for parcels with more than five units). Planned-Residential Development— This land use is defined as any property for which a tentative or final tract map has been filed and approved (a specific number of residential lots and units has been identified) and the property is expected to be subdivided within the fiscal year or is part of the overall improvement and development plan for the District. This land use classification often times involves more than a single parcel (e.g. the approved tract map encompasses more than a single APN). Each parcel that is part of the approved tract map shall be assessed proportionately for the proposed or estimated residential type and units to be developed on that parcel as part of the approved tract map. Accordingly, each parcel is assigned an appropriate number of benefit units that reflects the development of that property at build-out. (The EBU assigned to each parcel shall represent the combination of single-family, condominium, multi-family units to be developed). Vacant Residential — This land use is defined as property currently zoned for residential development, but a tentative or final tract map for the property has not yet been approved. Based upon the opinions of professional appraisers who appraise market property values for real estate in California, the land value portion of a property typically ranges from 20 to 30 percent of the total value of a developed residential property (the average is about 25 percent). Although the assessed value of an individual property is not 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 1.00 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 25.00 EBU (parcels in excess of 25 acres are assigned 25.00 EBU). Parcels less than one acre, shall be assigned a minimum of 1.00 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); Landscaping & Lighting District No. 02 Las Lomas(Woodridge)Engineer's Report–City of Atascadero 5-4 Prepared by NBS–Fiscal Year 2012/13 • Dedicated public easements including open space areas, utility rights-of- way, greenbelts, parkways, parks or other publicly owned properties that are part of the District improvements or may provide other benefits to private properties within the District; • Private properties that cannot be developed independently from an adjacent property, such as common areas, sliver parcels or bifurcated lots or properties with very restrictive development use; These types of parcels are considered to receive little or no benefit from the improvements and are therefore exempted from assessment, but shall be reviewed annually by the assessment engineer to confirm the parcels' current development status. Government owned properties or public properties are not necessarily exempt properties and shall be subject to special benefit assessment unless it qualifies for an exempt status. Special Cases — In many districts where multiple land use classifications are involved, there are 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. The following table provides a summary of land use classifications and the Equivalent Benefit Unit calculations previously outlined. Equivalent Property Type Benefit Units Multiplier Single-family Residential 1.00 Per Unit/Lot/Parcel 0.75 Per Unit for the First 50 Units Multi-family Residential 0.50 Per Unit for Units 51-100 0.25 Per Unit for all Remaining Units Condominium/Townhome Units 0.75 Per Unit 1.00 Per Planned SF Residential Lot 0.75 Per Planned Condominium Planned Residential Development 0.75 Per Unit for the First 50 Units 0.50 Per Unit for Units 51-100 0.25 Per Unit for all Remaining Units Vacant Residential Land 1.00 Per Acre Exempt Parcels 0.00 Per Parcel The following formula is used to calculate each parcel's EBU (proportional benefit). Parcel Type EBU x Acres or Units = Parcel EBU The total number of Equivalent Benefit Units (EBU's) is the sum of the 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 the 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 Landscaping & Lighting District No. 02 Las Lomas(Woodridge) Engineer's Report–City of Atascadero 5-5 Prepared by NBS—Fiscal Year 2012/13 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 included 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 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 from February to February. The Maximum Assessment rate was increased by 3.0%for fiscal year 2012/2013. Beginning with the second fiscal year (fiscal year 2006/2007) and each fiscal year thereafter, the Maximum Assessment Rate is recalculated and a new Maximum Assessment Rate is 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, reductions in the proportional special benefit assigned to a land use classifications are permitted. Changes in land use or size of an individual property resulting in an assessment increase, is not considered an increased assessment. To impose a new or increased assessment other than the annual inflationary adjustment provided by the preceding Assessment Range Formula, the City must comply with the provisions of 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. Landscaping & Lighting District No. 02 Las Lomas(Woodridge)Engineer's Report—City of Atascadero 5-6 Prepared by NBS—Fiscal Year 2012/13 6. ASSESSMENT DIA GRA M The parcels within the Landscaping and Lighting District No. 02 Las Lomas (Woodridge) consist of the lots, parcels and subdivisions of land located in the planned residential development known as Las Lomas (Woodridge), Tract 2525-1. The District covers approximately one hundred twenty-two acres (121.65 acres) in the southeast portion of the City of Atascadero. The following District Diagram is based on the San Luis Obispo County Assessor's Maps and the San Luis Obispo County Assessor's information and identifies the original parcels of land within the proposed District. 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, was presented to the property owners of record and approved in accordance with the provisions of the California Constitution. Landscaping & Lighting District No. 02 Las Lomas(Woodridge)Engineer's Report—City of Atascadero 6-1 Prepared by NBS—Fiscal Year 2012/13 ASSESSMENT DIAGRAM FOR LANDSCAPE AND LIGHTING DISTRICT NO.2 LAS LOMAS (WOODRIDGE) CITY OF ATASCADERO, COUNTY OF SAN LUIS OBISPO, STATE OF CALIFORNIA u1-r� � u BOUNDARY MAP OF LANDSCAFING AND UGHTING DISTRICT NO. 02 (WOODRIDGE) OTY Of ATASCA-'"C C"TY OF SAH LJS 09SM Rep+4 STATE OF' CAIIFQP p A i.ee�an t rM'Nf W f��w ri ptift9m v L WAW.Nqpt Me ua vm O�wtt rt w��on a�r aaurtr a w1 ue r =a s TARWAA w f1l 1t CA/b.s M O�1 LCJI�D Ir 1 p=AM 1RR*V-0" -VA a qc W v V"n&I sepw6"K n 0-0 I 1W., VIClh'17Y MAP (Z5 r� f COD ® MuniFinancial elf ur avau ea�eM► C) Irl►paoaQ Nw TAKTA 2011/2012 L&L No. 2 Page 19 of 24 7. ASSESSMENT ROL L 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 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 assessment amounts for each of the parcels within the District as determined by the assessment rates and method of apportionment described herein: Landscaping & Lighting District No. 02 Las Lomas(Woodridge)Engineer's Report—City of Atascadero 7-1 Prepared by NBS—Fiscal Year 2012/13 CITY OF ATASCADERO Landscaping and Lighting District No. 02 Las Lomas (Woodridge) Fiscal Year 2012/2013 Assessment Roll Assessor's Equivalent Maximum Proposed Parcel Number Benefit Units Assessment Assessment(') 045-311-006 0 $ - $ - 045-311-007 0 - - 045-311-008 0 - - 045-311-009 0 - - 045-311-010 1 1,523.56 350.80 045-311-013 0 - - 045-311-014 17.77 27,073.66 6,233.88 045-311-015 24.83 37,829.99 8,710.60 045-311-016 19.90 30,318.84 6,981.12 045-312-001 1 1,523.56 350.80 045-312-002 1 1,523.56 350.80 045-312-003 1 1,523.56 350.80 045-312-004 1 1,523.56 350.80 045-312-005 1 1,523.56 350.80 045-312-006 1 1,523.56 350.80 045-312-007 1 1,523.56 350.80 045-312-008 1 1,523.56 350.80 045-312-009 1 1,523.56 350.80 045-312-010 1 1,523.56 350.80 045-312-011 1 1,523.56 350.80 045-312-012 1 1,523.56 350.80 045-312-013 1 1,523.56 350.80 045-312-014 1 1,523.56 350.80 045-312-015 1 1,523.56 350.80 045-312-016 1 1,523.56 350.80 045-312-017 1 1,523.56 350.80 045-312-018 1 1,523.56 350.80 045-312-019 1 1,523.56 350.80 045-312-020 1 1,523.56 350.80 045-312-021 1 1,523.56 350.80 045-312-022 1 1,523.56 350.80 045-312-023 1 1,523.56 350.80 045-312-024 1 1,523.56 350.80 045-312-025 1 1,523.56 350.80 045-312-026 1 1,523.56 350.80 045-312-027 1 1,523.56 350.80 045-312-028 1 1,523.56 350.80 045-312-029 1 1,523.56 350.80 045-312-030 1 1,523.56 350.80 045-312-031 1 1,523.56 350.80 045-312-032 1 1,523.56 350.80 045-312-033 1 1,523.56 350.80 045-312-034 1 1,523.56 350.80 045-312-035 1 1,523.56 350.80 045-312-036 1 1,523.56 350.80 Landscaping and Lighting District No. 02 Las Lomas(Woodridge) Engineer's Report-City of Atascadero Prepared by NBS-Fiscal Year 2012/13 Assessor's Equivalent Maximum Proposed Parcel Number Benefit Units Assessment Assessment(') 045-312-037 1 1,523.56 350.80 045-312-038 1 1,523.56 350.80 045-312-039 1 1,523.56 350.80 045-312-040 1 1,523.56 350.80 045-312-041 1 1,523.56 350.80 045-312-042 1 1,523.56 350.80 045-312-043 1 1,523.56 350.80 045-312-044 1 1,523.56 350.80 045-312-045 1 1,523.56 350.80 045-312-046 1 1,523.56 350.80 045-312-047 1 1,523.56 350.80 045-312-048 1 1,523.56 350.80 045-312-049 1 1,523.56 350.80 045-312-050 1 1,523.56 350.80 045-312-051 1 1,523.56 350.80 045-312-052 1 1,523.56 350.80 045-312-053 1 1,523.56 350.80 045-312-054 1 1,523.56 350.80 045-312-055 1 1,523.56 350.80 045-312-056 1 1,523.56 350.80 045-313-001 1 1,523.56 350.80 045-313-002 1 1,523.56 350.80 045-313-003 1 1,523.56 350.80 045-313-004 1 1,523.56 350.80 045-313-005 1 1,523.56 350.80 045-313-006 1 1,523.56 350.80 045-313-007 1 1,523.56 350.80 045-313-008 1 1,523.56 350.80 045-313-009 1 1,523.56 350.80 045-313-010 1 1,523.56 350.80 045-313-011 1 1,523.56 350.80 045-313-012 1 1,523.56 350.80 045-313-013 1 1,523.56 350.80 045-313-014 1 1,523.56 350.80 045-313-015 1 1,523.56 350.80 045-313-016 1 1,523.56 350.80 045-313-017 1 1,523.56 350.80 045-313-018 1 1,523.56 350.80 045-313-019 1 1,523.56 350.80 045-313-020 1 1,523.56 350.80 045-313-021 1 1,523.56 350.80 045-314-001 1 1,523.56 350.80 045-314-002 1 1,523.56 350.80 045-314-003 1 1,523.56 350.80 045-314-004 1 1,523.56 350.80 045-314-005 1 1,523.56 350.80 045-314-006 1 1,523.56 350.80 045-314-007 1 1,523.56 350.80 045-314-008 1 1,523.56 350.80 045-314-009 1 1,523.56 350.80 Landscaping and Lighting District No. 02 Las Lomas(Woodridge) Engineer's Report-City of Atascadero Prepared by NBS-Fiscal Year 2012/13 Assessor's Equivalent Maximum Proposed Parcel Number Benefit Units Assessment Assessment(') 045-314-010 1 1,523.56 350.80 045-314-011 1 1,523.56 350.80 045-314-012 1 1,523.56 350.80 045-314-013 1 1,523.56 350.80 045-314-014 1 1,523.56 350.80 045-314-015 1 1,523.56 350.80 045-314-016 1 1,523.56 350.80 045-314-017 1 1,523.56 350.80 045-314-018 1 1,523.56 350.80 045-314-019 1 1,523.56 350.80 045-314-020 1 1,523.56 350.80 045-314-021 1 1,523.56 350.80 045-314-022 1 1,523.56 350.80 045-314-023 1 1,523.56 350.80 045-314-024 1 1,523.56 350.80 045-314-025 1 1,523.56 350.80 045-314-026 1 1,523.56 350.80 045-314-027 1 1,523.56 350.80 045-314-028 1 1,523.56 350.80 045-314-029 1 1,523.56 350.80 045-314-030 1 1,523.56 350.80 045-314-031 1 1,523.56 350.80 045-314-032 1 1,523.56 350.80 045-314-033 1 1,523.56 350.80 045-315-001 1 1,523.56 350.80 045-315-002 1 1,523.56 350.80 045-315-003 1 1,523.56 350.80 045-315-004 1 1,523.56 350.80 045-315-005 1 1,523.56 350.80 045-315-006 1 1,523.56 350.80 045-315-007 1 1,523.56 350.80 045-315-008 1 1,523.56 350.80 045-315-009 1 1,523.56 350.80 045-315-010 1 1,523.56 350.80 045-315-011 1 1,523.56 350.80 045-315-012 1 1,523.56 350.80 045-315-013 1 1,523.56 350.80 045-315-014 1 1,523.56 350.80 045-315-015 1 1,523.56 350.80 045-315-016 1 1,523.56 350.80 045-315-017 1 1,523.56 350.80 045-315-018 1 1,523.56 350.80 045-315-019 1 1,523.56 350.80 045-315-020 1 1,523.56 350.80 045-315-021 1 1,523.56 350.80 045-315-022 1 1,523.56 350.80 045-315-023 1 1,523.56 350.80 045-315-024 1 1,523.56 350.80 045-315-025 1 1,523.56 350.80 045-315-026 1 1,523.56 350.80 Landscaping and Lighting District No. 02 Las Lomas(Woodridge) Engineer's Report-City of Atascadero Prepared by NBS-Fiscal Year 2012/13 Assessor's Equivalent Maximum Proposed Parcel Number Benefit Units Assessment Assessment(') 045-315-027 1 1,523.56 350.80 045-315-028 1 1,523.56 350.80 045-315-029 1 1,523.56 350.80 045-315-030 1 1,523.56 350.80 045-315-031 1 1,523.56 350.80 045-315-032 1 1,523.56 350.80 045-315-033 1 1,523.56 350.80 045-316-001 0 - - 045-316-002 0 - - 045-316-003 0 - - 045-316-004 0.75 1,142.67 263.10 045-316-005 0.75 1,142.67 263.10 045-316-006 0.75 1,142.67 263.10 045-316-007 0.75 1,142.67 263.10 045-316-008 0.75 1,142.67 263.10 045-316-009 0.75 1,142.67 263.10 045-316-010 0.75 1,142.67 263.10 045-316-011 0.75 1,142.67 263.10 045-316-012 0.75 1,142.67 263.10 045-316-013 0.75 1,142.67 263.10 045-316-014 0.75 1,142.67 263.10 045-316-015 0.75 1,142.67 263.10 045-316-016 0.75 1,142.67 263.10 045-316-017 0.75 1,142.67 263.10 045-316-018 0.75 1,142.67 263.10 045-316-019 0.75 1,142.67 263.10 045-316-020 0.75 1,142.67 263.10 045-316-021 0.75 1,142.67 263.10 045-316-022 0.75 1,142.67 263.10 045-316-023 0.75 1,142.67 263.10 045-316-024 0.75 1,142.67 263.10 045-316-025 0.75 1,142.67 263.10 045-316-026 0.75 1,142.67 263.10 045-316-027 0.75 1,142.67 263.10 045-316-028 0.75 1,142.67 263.10 045-316-029 0.75 1,142.67 263.10 045-316-030 0.75 1,142.67 263.10 045-316-031 0.75 1,142.67 263.10 045-316-032 0.75 1,142.67 263.10 045-316-033 0.75 1,142.67 263.10 045-316-034 0.75 1,142.67 263.10 045-316-035 0.75 1,142.67 263.10 045-316-036 0.75 1,142.67 263.10 045-316-037 0.75 1,142.67 263.10 045-316-038 0.75 1,142.67 263.10 Totals 232.75 $ 354,608.59 $ 81,649.30 (1)Slight variance in charge or total budget are due to rounding for placement on the tax rolls. Landscaping and Lighting District No. 02 Las Lomas(Woodridge) Engineer's Report-City of Atascadero Prepared by NBS-Fiscal Year 2012/13 ITEM NUMBER: A- 6 DATE: 05/08/12 1918 fl 1979 Atascadero City Council Staff Report — Public Works Department Atascadero Avenue Cold In-Place Recyling Road Rehabilitation Project Award City Bid No. 2012-003 RECOMMENDATIONS: Council: 1. Authorize the City Manager to execute a contract with Ferravanti Grading and Paving in the amount of $603,955.70 for construction of the Atascadero Avenue Cold In-Place Recycling Road Rehabilitation Project; and, 2. Authorize the Public Works Director to intermittently close portions of Atascadero Avenue during the construction period; and, 3. Authorize the Director of Public Works to file a Notice of Completion with the County Recorder upon satisfactory completion of the project. DISCUSSION: Background: The existing asphalt surface on Atascadero Avenue between Highway 41 and San Rafael Road is in a significantly deteriorated condition. This section of Atascadero Avenue also serves as a major collector road in Atascadero, generating approximately 2,000 daily vehicle trips. The City Council appropriated funds in fiscal year 2011-2012 to design and construct much needed road surface improvements to this section of Atascadero Avenue. City staff considered multiple options for asphalt rehabilitation on Atascadero Avenue, finally selecting a Cold In-Place Recycling method. This innovative road reconstruction process is a fast, cost-effective alternative to more traditional methods of rebuilding ITEM NUMBER: A- 6 DATE: 05/08/12 asphalt roadways. Cold In-Place Asphalt Recycling makes use of the original aggregate and old asphalt that bound the aggregate into the existing surface of the road. Cold In- Place Recycling has been used since the early 1980"s to reconstruct nearly every type of asphalt-based roadway. This pavement recycling method has grown in popularity recently with improved asphalt additives, the growing emphasis on recycling, and Green House Gas reduction goals. The project will take approximately six to eight weeks to complete. Analysis: The Atascadero Avenue Cold In-Place Recycling Road Rehabilitation was advertised from March 13, 2012, through April 19, 2012. A total of six (6) bids were received for this project. The bids were reviewed for accuracy and compliance with State and City of Atascadero bidding requirements. Ferravanti Grading and Paving is the apparent lowest responsive bidder at $603,955.70. Conclusion: Staff recommends that the City Council authorize the City Manager to execute a contract with Ferravanti Grading and Paving in the amount of $603,955.70 for construction of the Atascadero Avenue Cold In-Place Recycling Road Rehabilitation. FISCAL IMPACT: Funding for the Project is as follows: EXPENDITURES Design / Admin Costs $ 20,000 Construction $ 603,960 Inspection / Testing / Construction Administration $ 10,000 Contingency @ 9.7% $ 58,540 Total Estimated Expenditure: $ 692,500 REVENUE City LTF Funds $ 459,500 Urban State Highway Account Funds $ 233,000 Total Allocated Revenue: $ 692,500 Awarding of this contract will result in the expenditure of $603,955.70 in budgeted Local Transportation Funds and Urban State Highway Account Funds. ALTERNATIVES: 1. Council may not award the contract and cancel the project. 2. Council may direct staff to redesign and re-bid the project. ATTACHMENTS: Bid Summary ITEM NUMBER: A- 6 DATE: 05/08/12 Attachment City of'Ataseadero Office of the City Clerk Bid S''ummag TO: Public Works FROM: Lisa Cava, Deputy City Cler BID NO.: 2012-003 OPENED: 4/19/12 (a)2:00 PM PROJF,CI': Atascadero Avenue Cold In-Place Recycling !toad Rel 6 Bids were received and opened today, as follows: BIDDER TOTAL BASF: RID Ferravanti $603,955.70 CalPortland $647,310.89 Granite $658,630.00 Rockwood $682,214.39 R.Burke $718,737.00 Souza $723,703.75 ITEM NUMBER: A- 7 DATE: 05/08/12 �ff Fm mill�i����i�j IF i 1918 1979 A tascadero City Council Staff Report — Public Works Department Purchase of Wastewater Portable Bypass Pump RECOMMENDATIONS: Council: 1. Approve the purchase of a Portable Bypass Pump for $50,405 from Griffin Dewatering Corporation; and, 2. Authorize the Director of Finance to appropriate an additional $1 ,500 of wastewater funds to complete the purchase. DISCUSSION: Pursuant to the 2011/2013 budget, staff is proposing to purchase a portable bypass pump for use at the City's lift stations and wastewater plant. The portable bypass pump will be used as a backup when a lift station pump or pumps break down or a power outage occurs. The City's current pump has been rebuilt several times and it is now more cost effective to replace the pump. In addition, the diesel engine is antiquated and an upgrade would cost significantly more than buying new. Staff followed the formal bidding procedures and received three bids on April 5, 2012. The apparent low bidder was Griffin Dewatering Corporation at $50,405. This bid is $405 above the $50,000 budgeted amount. Therefore, staff is requesting an additional $1,500 of wastewater funds be allocated to complete the purchase and pay for operating permits. A bid summary is included as Attachment 1. FISCAL IMPACT: This action will result in the expenditure of $50,000 in budgeted wastewater funds and $1,500 in wastewater reserves for the Wastewater Portable Generator Project. ITEM NUMBER: A- 7 DATE: 05/08/12 ALTERNATIVE: 1. Council may not approve the purchase of the portable bypass pump. Staff does not recommend this action since the portable bypass pump is a key defense against sewage overflows resulting from power outages and pump failures. ATTACHMENTS: 1. Bid Summary ITEM NUMBER: A- 7 DATE: 05/08/12 Attachment 1 Attachment 1 Bid Summary Cityof'A taseadero off icc of the City Clerk BID SUMMARY TO: Public Works Department / �g FROM: Victoria Randall,Deputy City Clerk BID NO.: 2012-001 OPENED: April 5, 2012,3:00 p.m. PROJECT: Atascadero Wastewater Portable Bypass Pump 3 bids were received and opened today,as follows: I lddcr Amount Rain for Rent $89,716.32 Gierlich-Mitchell, Inc. $62.342.63 Griffin Dewatering Corp. $50,405.00 ITEM NUMBER: A- 8 DATE: 05/08/12 OR A tascadero City Council Staff Report — Public Works Department Transit Center Project Award City Bid No. 2012-002 RECOMMENDATIONS: Council: 1. Authorize the City Manager to execute a contract with Pickard & Butters Construction in the amount of $624,340.78 for construction of the Transit Center Base Bid Project; and, 2. Award Additive Alternate A in the amount of $39,870 and include the additional work in the Base Bid contract with Pickard & Butters Construction; and, 3. Authorize the Public Works Director to intermittently close portions of Capistrano Road and Lewis Avenue during the construction period; and, 4. Authorize the Director of Public Works to file a Notice of Completion with the County Recorder upon satisfactory completion of the project. DISCUSSION: Background: In 2007, the City and the San Luis Obispo Council of Governments authorized and funded a study to determine the feasibility of developing a downtown transit center. Staff presented the Site Selection study results to Council in September 2009, and the location on Capistrano Avenue was chosen. In May 2010 the City Council approved the Wallace Group, Inc., to perform the Downtown Transit Center design. The design is now complete and the City is moving on to the construction phase. The Transit Center project base bid is designed with an emphasis on durable construction and functionality. The project includes downtown standard hardscaping that matches the City's downtown design elements. In addition, drought tolerant landscaping and green design elements such as solar lighting were chosen to reduce long-term operating and maintenance costs. The Transit Center's amenities include ITEM NUMBER: A- 8 DATE: 05/08/12 two shade structures with rain gutters, benches, trash cans, street trees, route map and advertising kiosks, decorative retaining walls and a paver pathway to the City Hall Annex and Colony Square. The project also includes a drop off/pick up area, on Capistrano Avenue, to accommodate disabled access. This project also includes two bid alternates. The first bid alternate is for a.) the construction of a flashing bus sign that will alert drivers to the presence and movement of parked buses, and b) decorative stamped concrete crosswalks at the Capistrano Ave and Lewis Avenue intersection. This sign will provide additional warning to drivers as they travel south from Lewis Avenue towards State Route 41 . The second bid alternate consists of the installation of downtown streetscape sidewalk and lighting along the east side of Capistrano Avenue (Bank of America side). Bid Alternate B also included new street lighting on the portion of Capistrano that parallels Atascadero Creek. Staff is not recommending awarding Bid Alternate B because of budget constraints. Analysis: The Transit Center Project was advertised from March 13, 2012, through April 17, 2012. A total of eight bids were received for this project. The bids were reviewed for accuracy and compliance with State and City of Atascadero bidding requirements and the total verified to arrive at the actual corrected bid results. The apparent low bid was submitted by Pickard and Butters, and after considerable review was accepted as meeting the City's bidding requirements. Conclusion: Staff recommends that the City Council authorize the City Manager to execute a contract with Pickard & Butters Construction in the amount of $ 664,210.78 for construction of the Atascadero Transit Center Base Bid and Additive Alternate A. FISCAL IMPACT: PROJECTED EXPENDITURES Design/ Admin Costs $ 120,000 Construction $ 664,211 Inspection / Testing / Construction Administration $75,000 Contingency @ 20% $132,840 Total Estimated Expenditure: $992,051 REVENUE Proposition 1 B $ 900,000 Federal Transit Authority 5307 Funds $ 84,519 Local Transit Funds $ 23,000 Total Allocated Revenue: $ 1,007,519 ESTIMATED SURPLUS OF AVAILABLE FUNDING $15,468 ITEM NUMBER: A- 8 DATE: 05/08/12 ALTERNATIVES: 1. Reject all bids and direct staff to redesign and re-bid the project. 2. Do not award the contract, reject all bids and cancel the project. ATTACHMENTS: Bid Summary ITEM NUMBER: A- 8 DATE: 05/08/12 Attachment 1 Attachment 1 Bid Summary City of Atascadero Office of the On, Clerk Bird Sunt»>my TO: Public Worlis FROM: Lisa Cava,Deputy City Clerk BID NO.: 2012-002 11 OPFNFD: 4117112 an 2:110 pm PROJECT: Atawadero Transit Center 8 Bids were received and(nvned today.as follows: 3111 .R TOTAL BASF BID ADD ALTERNATE A App ALTF.RNATF B Pickard&Butters $624.147.61 539.870.00 S`'16.363.00 Stockbridge Gen Contr $6.18.155.40 $35,350.00 S218.175.00 Wysong Construction 3679.147.92 532.6601* $177.115.00 J.Madonna Construction 5689,985. 5 S60,44901 S2321730)Vernon Edwards ",4020) 530,1760) $197.533.00 Whitaker Construction $737,177.00 531,540.00 5173,74500 Granite Construction 5733,607.00 S%.050.00 $290.465.Un Arthur,Contracting 1761.428.54► $29.350.00 5183.105.00 ITEM NUMBER: B - 1 DATE: 05/08/12 9fry��J `Iola 1 itR 107 h 10M u ter_ Atascadero City Council Staff Report — Administrative Services Authorizing an Amendment to the Contract between the City Council of the City of Atascadero and the Board of Administration of the California Public Employees' Retirement System RECOMMENDATIONS: Council: 1. Adopt the Draft Resolution of Intention to approve an amendment to the contract between the Board of Administration of the California Public Employees' Retirement System and the City Council of the City of Atascadero; and, 2. Introduce for first reading by title only, the Draft Ordinance authorizing the Mayor to execute an amendment to the contract between the City Council of the City of Atascadero and the Board of Administration of the California Public Employees' Retirement System. DISCUSSION: On June 28, 2011, Council adopted Memorandums of Understanding (MOUs) for all four employee groups and a Resolution for the non-represented professional and management workers and confidential employees. The agreements adopted called for the implementation of a lower benefit two-tiered retirement system in July of 2012. Adoption of this Resolution and Ordinance will implement the two-tiered system effective July 14, 2012. All employees who are eligible to be enrolled in CalPERS and are hired after July 14, 2012 will receive the lower retirement benefits. Sworn safety CalPERS members hired after the implementation date of the amended contract shall be provided the lower benefits pursuant to the 3% @ 55 formula, based on three (3) year average compensation. ITEM NUMBER: B - 1 DATE: 05/08/12 Non-sworn miscellaneous CaIPERS members hired after the implementation date of the amended contract shall be provided the lower benefits pursuant to the 2% @ 55 formula, based on three (3) year average compensation. In compliance with Government Code Section 7507, disclosure of the future annual costs as determined by the System Actuary for the change in retirement benefits is as follows: Safety Category 1. The employer contribution rate will be 20.057% of reportable earnings for local safety members entering membership for the first time in the safety classification after the effective date of this amendment to contract. 2. The local safety member contribution rate will remain at 9% of reportable earnings for those safety members entering membership for the first time in the safety classification after the effective date of this amendment to the contract. The City does contribute toward the member contribution as outlined in the employee contracts and MOUs. Miscellaneous Category 1. The employer contribution rate will be 10.518% of reportable earnings for local miscellaneous members entering membership for the first time in the miscellaneous classification after the effective date of this amendment to contract. 2. The local miscellaneous member contribution rate will be 7% of reportable earnings for those miscellaneous members entering membership for the first time in the miscellaneous classification after the effective date of this amendment to the contract. The City does contribute toward the member contribution as outlined in the employee contracts and MOUs. In order to implement these lower benefit changes, Council must first adopt a Draft Resolution of Intention and introduce for first reading the Ordinance authorizing an amendment to our contract with CaIPERS for both miscellaneous and safety members. A second reading of the Ordinance is scheduled for June 12, 2012. FISCAL IMPACT: Over time, the two-tiered retirement contracts are expected to save the City money. ITEM NUMBER: B - 1 DATE: 05/08/12 ATTACHMENTS: 1. Draft Resolution - Resolution of Intention to Approve an Amendment to Contract 2. Draft Ordinance - Ordinance Authorizing an Amendment to the Contract 3. Amendment to Contract Exhibit 4. Actuarial Valuation of Second Tier Plan for Miscellaneous, Safety Fire and Safety Police Plans ITEM NUMBER: B - 1 DATE: 05/08/12 Attachment 1 DRAFT RESOLUTION RESOLUTION OF INTENTION TO APPROVE AN AMENDMENT TO CONTRACT BETWEEN THE BOARD OF ADMINISTRATION CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT SYSTEM AND THE CITY COUNCIL OF THE CITY OF ATASCADERO WHEREAS, the Public Employees' Retirement Law permits the participation of public agencies and their employees in the Public Employees' Retirement System by the execution of a contract, and sets forth the procedure by which said public agencies may elect to subject themselves and their employees to amendments to said Law; and WHEREAS, one of the steps in the procedures to amend this contract is the adoption by the governing body of the public agency of a resolution giving notice of its intention to approve an amendment to said contract,which resolution shall contain a summary of the change proposed in said contract; and WHEREAS, the following is a statement of the proposed change: To provide Section 20475 (Different Level of Benefits). Section 21354 (2% @ 55 Full formula) and Section 20037 (Three-Year Final Compensation) are applicable to local miscellaneous members entering membership for the first time in the miscellaneous classification after the effective date of this amendment to contract, and Section 20475 (Different Level of Benefits). Section 21363.1 (3% @ 55 Full formula) and Section 20037 (Three-Year Final Compensation) are applicable to local safety members entering membership for the first time in the safety classification after the effective date of this amendment to contract. NOW, THEREFORE, BE IT RESOLVED that the governing body of the above agency does hereby give notice of intention to approve an amendment to the contract between said public agency and the Board of Administration of the Public Employees' Retirement System, a copy of said amendment being attached hereto, as an "Exhibit" and by this reference made a part hereof. ITEM NUMBER: B - 1 DATE: 05/08/12 Attachment 1 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: Bob Kelley,Mayor ATTEST: Marcia McClure Torgerson, C.M.C., City Clerk APPROVED AS TO FORM: Brian A. Pierik, City Attorney ITEM NUMBER: B - 1 DATE: 05/08/12 Attachment 2 DRAFT ORDINANCE AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ATASCADERO, CALIFORNIA, AUTHORIZING AN AMENDMENT TO THE CONTRACT BETWEEN THE CITY COUNCIL OF THE CITY OF ATASCADERO AND THE BOARD OF ADMINISTRATION OF THE CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT SYSTEM The City Council of the City of Atascadero does ordain as follows: SECTION 1: That an amendment to the contract between the City Council of the City of Atascadero and the Board of Administration, California Public Employees' Retirement System is hereby authorized, a copy of said amendment being attached hereto, marked Exhibit, and by such reference made a part hereof as though herein set out in full. SECTION 2: The Mayor of the City of Atascadero is hereby authorized, empowered, and directed to execute said amendment for and on behalf of said Agency. SECTION 3: This Ordinance shall take effect 30 days after the date of its adoption and thenceforth and thereafter the same shall be in full force and effect. A summary of this ordinance, approved by the City Attorney, together with the ayes and noes, shall be published at least five days prior to its final passage in the Atascadero News, a newspaper published and circulated in the City of Atascadero, and before the expiration of fifteen (15) days after its final passage in the Atascadero News, a newspaper published and circulated in the City of Atascadero. A copy of the full text of this ordinance shall be on file in the City Clerk's Office on and after the date following introduction and passage and shall be available to any interested member of the public. ITEM NUMBER: B - 1 DATE: 05/08/12 Attachment 2 INTRODUCED at a regular meeting of the City Council held on and PASSED and ADOPTED by the City Council of the City of Atascadero, State of California, on by the following roll call vote: AYES: NOES: ABSTAIN: ABSENT: CITY OF ATASCADERO By: Bob Kelley, Mayor ATTEST: Marcia McClure Torgerson, C.M.C., City Clerk APPROVED AS TO FORM: Brian A. Pierik, City Attorney CaIPERS EXHIBIT California Public Employees' Retirement System AMENDMENT TO CONTRACT Between the Board of Administration California Public Employees ' Retirement System and the City Council City of Atascadero The Board of Administration, California Public Employees' Retirement System, hereinafter referred to as Board, and the governing body of the above public agency, hereinafter referred to as Public Agency, having entered into a contract effective April 19, 1980, and wt nessed March 19, 1980, and as amended effective July 1, 1980, April 30, 1983, January 7, 1984, July 14, 1990, November 9, 1991, April 12, 1992, August 29, 1992, December 26, 1997, July 3, 1999, June 23, 2001 , July 13, 2002, July 10, 2004 and June 23, 2007 which provides for participation of Public Agency in said System, Board and Public Agency hereby agree as follows: A. Paragraphs 1 through 14 are hereby stricken from said contract as executed effective June 23, 2007, and hereby replaced by the following paragraphs numbered 1 through 17 inclusive: 1 . All words and terms used herein which are defined in the Public Employees' Retirement Law shall have the meaning as defined therein unless otherwise specifically provided. "Normal retirement age" shall mean age 55 for local miscellaneous members; age 50 for local safety members entering membership in the safety cla ssif is atlo n on or prior to the effective date of this amendment to contract and age 55 for local safety members entering membership for the first time in the safety cla ssif icatio n after the effectiv e date of this amendment to contract. 2. Public Agency shall participate in the Public Empbyees' Retirement System from and after April 19, 1980 making its employees as hereinafter provided, members of said System subject to all provis ions of the Public Employees' Retirement Law except such as appy only on election of a contracting agency and are not provided for herein and to all amendments to said Law hereafter enacted except those, which by express provis b ns thereof, appy only on the ele ctio n of a contracting agency. 3. Public Agency agrees to indemnify, defend and hold harmless the California Public Employees' Retirement System (CaIPERS) and its trustees, agents and employees, the CaIPERS Board of Administration, and the California Public Employees' Retirement Fund from any claims, demands, actions, losses, Iia bila ie s, damages, judgments, expenses and costs, including but not limited to interest, penalties and attorneys fees that may arise as a result of any of the following: (a) Public Agency's ele ctb n to provide retirement benefits, provis b ns or formula s under this Contract that are different than the retirement benefit s, provis b ns or formulas provided under the Public Agency's prior non-CaIPERS retirement program. (b) Public Agency's ele ctb n to amend this Contract to provide retirement benefits, provis b ns or formula s that are different than existing retirement benefits, provis b ns or formula s. (c) Public Agency's agreement with a third party other than CaIPERS to provid e retirement benefits, provis b ns, or formula s that are different than the retirement benefits, provis bns or formulas provided under this Contract and provided for under the California Public Employees' Retirement Law. (d) Public Agency's ele ctb n to file for bankruptcy under Chapter 9 (commencing wit h sectb n 901) of Tit le 11 of the Untied States Bankruptcy Code and/or Public Agency's ele ctb n to reject this Contract with the CaIPERS Board of Administration pursuant to sectio n 365, of Tit le 11, of the Unit ed States Bankruptcy Code or any simila r provis b n of la w. (e) Public Agency's ele ctb n to assig n this Contract wit hout the prb r written consent of the CaIPERS' Board of Adminis tratb n. (f) The terminatb n of this Contract ether voluntarily by request of Public Agency or involuntarily pursuant to the Public Employees' Retirement Law. (g) Changes sponsored by Public Agency in existing retirement benefts, provis b ns or formula s made as a result of amendments, addkions or deletions to California statute or to the California Consttutbn. 4. Employees of Public Agency in the following classes shall become members of said Retirement System except such in each such class as are excluded by law or this agreement: a. Local Fire Fighters (herein referred to as local safety members); b. Local Police Officers (herein referred to as local safety members); C. Employees other than local safety members (herein referred to as local miscellaneous members). 5. In addtion to the classes of employees excluded from membership by said Retirement Law, the following classes of employees shall not become members of said Retirement System: NO ADDITIONAL EXCLUSIONS 6. This contract shall be a continuation of the benefts of the contract of the Atascadero Fire Protection District, hereinafter referred to as "Former Agency", pursuant to Section 20567.2 of the Government Code, Former Agency having ceased to exist and having been required by law to be succeeded by Public Agency on July 1 , 1980. Public Agency, by this contract, assumes the accumulated contributions and assets derived therefrom and Iia bilty for prior and current service under Former Agency's contract wt h respect to the Former Agency's employees. Legis la do n repealed said Section effective January 1 , 1988. 7. The percentage of final compensation to be provided for each year of credi ed prior and current service as a local miscellaneous member in employment before and not on or after June 23, 2007 shall be determined in accordance wt h Sectio n 21354 of said Retirement Law (2% at age 55 Full). 8. The percentage of final compensation to be provided for each year of credi ed prior and current service as a local miscellaneous member in employment on or after June 23, 2007 and not entering membership for the first time in the miscellaneous classification after the effective date of this amendment shall be determined in accordance with Section 21354.4 of said Retirement Law (2.5% at age 55 Full). 9. The percentage of final compensation to be provided for each year of credited current service as a local miscellaneous member entering membership for the first time in the miscellaneous classification after the effective date of this amendment to contract shall be determined in accordance wit h Sectio n 21354 (2% at age 55 Full). 10. The percentage of final compensation to be provided for each year of credited prior and current service as a local safety member entering membership in the safety cla ssif is atlo n on or prix r to the effective date of this amendment to contract shall be determined in accordance with Section 21363.2 of said Retirement Law (3% at age 50 Full). 11 . The percentage of final compensation to be provided for each year of credited current service as a local safety member entering membership for the first time in the safety classification after the effective date of this amendment to contract shall be determined in accordance wth Section 21363.1 of said Retirement Law (3% at age 55 Full). 12. Public Agency elected and elects to be subject to the following optional provis io ns: a. Section 21574 (Fourth Level of 1959 Survivor Benefits) for local safety members only. b. Sections 21624, 21626 and 21628 (Post-Retirement Survivor Allowance) for local miscellaneous members only. C. Section 21024 (Military Service Credit as Public Service). d. Sectio n 20903 (Two Years Addit io nal Service Credit). e. Section 20042 (One-Year Final Compensation) for local miscellaneous members and local safety members entering membership on or prior to the effective date of this amendment to contract. f. Section 20965 (Credit for Unused Sick Leave) for local safety members only. g. Section 20475 (Different Level of Benefits). Section 21354 (2% @ 55 Full formula) and Section 20037 (Three-Year Final Compensation) are applicable to local miscellaneous members entering membership for the first time in the miscellaneous cla ssif is ation after the effective date of this amendment to contract. Section 20475 (Different Level of Benefits). Section 21363.1 (3% @ 55 Full formula) and Section 20037 (Three-Year Final Compensation) are applicable to local safety members entering membership for the first time in the safety cla ssf b atio n after the effective date of this amendment to contract. 13. Public Agency, in accordance wit h Government Code Sectio n 20834, shall not be considered an "employer" for purposes of the Public Employees' Retirement Law. Contributions of the Public Agency shall be faed and determined as provided in Government Code Section 20834, and such contributions hereafter made shall be held by the Board as provided in Government Code Sectio n 20834. 14. Public Agency shall contribute to said Retirement System the contributio ns determined by actuarial valuations of prior and future service Iia bilty with respect to lo cal mis cella neous members and lo cal safety members of said Retirement System. 15. Public Agency shall also contribute to said Retirement System as follows: a. Contributions required per covered member on account of the 1959 Survivor Benefits provided under Section 21574 of said Retirement Law. (Subject to annual change.) In addition, all assets and liabilities of Public Agency and is employees shall be pooled in a single account, based on term insurance rates, for survivors of all local safety members. b. A reasonable amount, as faed by the Board, payable in one installment within 60 days of date of contract to cover the costs of administering said System as it affects the employees of Public Agency, not including the costs of special valuations or of the perlo dic investig atio n and valuatio ns required by la w. C. A reasonable amount, as faed by the Board, payable in one installment as the occasions arise, to cover the costs of special valuations on account of employees of Public Agency, and costs of the perio dic investig atio n and valuatio ns required by la w. 16. Contributions required of Public Agency and is employees shall be subject to adjustment by Board on account of amendments to the Public Employees' Retirement Law, and on account of the experience under the Retirement System as determined by the periodic investigation and valuatio n required by said Retirement Law. 17. Contributions required of Public Agency and its employees shall be paid by Public Agency to the Retirement System within fifteen days after the end of the period to which said contributions refer or as may be prescribed by Board regulation. If more or less than the correct amount of contributions is paid for any period, proper adjustment shall be made in connection with subsequent remitances. Adjustments on account of errors in contributions required of any employee may be made by direct payments between the employee and the Board. B. This amendment shall be effective on the day of BOARD OF ADMINISTRATION CITY COUNCIL PUBLIC EMPLOYEES' RETIREMENT SYSTEM CITY OF ATASCADERO BY BY KAREN DE FRANK, CHIEF PRESIDING OFFICER CUSTOMER ACCOUNT SERVICES DIVISION PUBLIC EMPLOYEES' RETIREMENT SYSTEM Witness Date Attest: Cie rk AMENDMENT CaP ERS ID#1298901388 PERS-CON-702A - , California Public Employees' Retirement System Actuarial Office �� �� P/�. Box 942709 �^ ~ -�� Sacramento, CA 94229-2709 TTY: (01G)79S'324O UAR — " �` � yA7y nI (888)22S'7377phone ^ (91G)795-2744fax vvmnm.um/pmra.co.Qov February 01,2012 (ALPERS[D: 1298901388 Employer Name: CITY OF A7AS(ADB<O Rate Plan: MISCELLANEOUS PLAN Re: New Second Tier Plan(Section 20475: Different Level of Benefits Provided for New Employees; Section 21354., 2Y6@55 Full Formula; Section 20037:Three-Year Final Compensation) DearRequegnr In the tables below, we show your 2011'2012 and 2012'2013 employer contribution rates before and after opening a second tier, Of the rate components shown below,the first two are specific to the pool to which the plan belongs and others are specific toyour agency, However,the Phase out of Normal Cost Difference will normally be 0% beginning with rates established for 2O11-2O12,00ithas noimpact from that time on. The Side Fund will continue to be paid off bythe first tier plan since all the past service onwhich it is based belongs to those current members who will continue in the first tier. The scheduled dollar amounts payable will continue as before. However, because newly hired members will be covered by the second tier, the number of members and payroll inthe first tier will (after several years)gradually decline, The Amortization of Side Fund rate component is the dollars needed to pay off the side fund divided by the payroll. So as Iona as the Side Fund remains,the first tier rate will increase as its payroll decreases. The first tier side fund is scheduled to be paid off after 11 years from June ]O, 2O12. Therefore,in determining the employer contributions savings,Amortization of Side Fund should hoexcluded. For your agency, the ultimate annual employer savings equals the difference between the Normal Cost and Surcharges rates times the second tier payroll. For 2011-2812the Normal Cost and Surcharges percentage savings is (8.71596+1.50796) - (7.68*96+0.80296) ~ 1.73696. Based on the 2Q09valuation,the ultimate employer annual dollar savings would then be 1.7%times the second tier fiscal year payroll. The Risk Pool's Payment on Amortization Bases is a temporary adjustment to the pool's contribution to"get the pool back on schedule".This temporary adjustment varies in amount and duration from pool to pool. As of June 30, 2009 Existing Plan New Second Tier Plan 2.5%@55 and One- 2%@55 and Three-Year Final Year Final Compensation for newly hired Compensation members 2011-2012 Employer Contribution Rate: Risk Pool's Net Employer Normal Cost 8.715% 7.684% Risk Pool's Payment on Amortization Bases 4.034% 1,855% One-Year Final Compensation 0,604% 0.000% Phase out of Normal Cost Difference 0,000% 0.000% Amortization of Side Fund 2,098% 0.000% Total Employer Contribution Rate 16-354% 10.341% 2011-2012 Employee Contribution Rate 8.000% 7.000% *The employee rate reduction of 111/o would begin immediately after you hire your first employee and last indefinitely. California Public Employees'Retirement System omxw.ca|pers.ca.Qov MISCELLANEOUS PLAN OF THE CITY OF ATASCADERO (CALPERS ID: 1298901388) February 2012 Page 2 For 2012-2013 the percentage savings is(8.78011/b+1.515%) -(7.7200/o+0.8020/0) = 1.773%. Based on the 2010 valuation,the ultimate employer annual dollar savings would then be 1.8%times the second tier fiscal year payroll. The Risk Pool's Payment on Amortization Bases is a temporary adjustment to the pool's contribution to"get the pool back on schedule".This temporary adjustment varies in amount and duration from pool to pool. As of.lune 30, 2010 Existing Plan New Second Tier Plan 2.5%@55 and One- 2%@55 and Three-Year Final Year Final Compensation for newly hired Compensation members 2012-2013 Employer Contribution Rate: Risk Pool's Net Employer Normal Cost 8.780% 7.720% Risk Pool's Payment on Amortization Bases 4,527% 1.996% One-Year Final Compensation 0.607% 0.000% PRSA 50% 0.908% 0.802% Phase out of Normal Cost Difference 01000% 0.000% Amortization of Side Fund 2.458% 0.000% Total Employer Contribution Rate 17.280% 10.518% 2012-2013 Employee Contribution Rate 8.000% 7.000% *The employee rate reduction of 1%would begin immediately after you hire your first employee and last indefinitely. To initiate an amendment to the contract, please follow the Contract Amendment Report process on MyCaiPERS with our Retirement Contract Services Unit, indicating your wish to contract for Section 20475 (Different Level of Benefits) and identifying the group(s)to which the benefit reduction applies. In sections 20463 (b) and (c), the California Public Employees' Retirement Law requires the governing body of a public agency within five days of receipt of the contract amendment cost analysis, to provide each employee organization with a copy of the analysis. If this cost analysis was requested by an employee organization, the employee organization is also required within five days of receipt of the analysis,to provide a copy of the analysis to the public agency. The June 30, 2010 Section 2 Risk Pool actuarial valuation report applicable to your new second tier plan can be viewed on the following website: http://www.ca 1pers.ca.gov/index.jsp?be=/employer/actuarial-gasb/risk-pool ing/va luation-reports.xml If you have questions, please call (888)CalPERS(225-7377). P BARBARA J. WARE,FSA, MAAA Enrolled Actuary Senior Pension Actuary,CalPERS / . . California Public Employees' Retirement System Actuarial Office P.O. Box 942709 Sacramento, CA 94229-2709 TTY: (S18) 7BS'324O CaIPERS (888)225-7377phone ^ (916)7B5-2744 fax vmxmxoalpero.00.gov February O1,ZO1Z CALPERSID: 1298901388 Employer Name: CITY OFATASCADERO Rate Plan: SAFETY PLAN Re: New Second Tier Plan(Section 20475: Different Level of Benefits Provided for New Employees; Section 213 63.1: 3.096@55 Full Formula; Section 20037:Thee-Year Final Compensation) For Fire Members Only DearKequeston In the tables below, we show your 2011-2012 and I012-2013 employer contribution rates before and after opening a second der. Ofthe rate components shown below,the first two are specific Uothe pool Uowhich the plan belongs and others are specific toyour agency. However,the Phase out ofNormal Cost Difference will normally be 0% beginning with rates established for 2011'2012,soithas noimpact from that time on. The Side Fund will continue to be paid off by the first tier plan since all the past service on which it is based belongs to those current members who will continue in the first tier. The scheduled dollar amounts payable will continue as before. However, because newly hired members will be covered by the second tier, the number ofmembers and payroll in the first tier will (after several years) gradually decline. The Amortization o[Side Fund rate component is the dollars needed topay off the side fund divided bythe payroll. Soaslong anthe Side Fund remains,the first tier rate will increase as its payroll decreases. The first tier side fund |sscheduled to be paid off after 13 years from June 30, 2012, Therefore, in determining the employer contributions savings, Amortization of Side Fund should be excluded. For your agency,the ultimate annual employer savings equals the difference between the Normal Cost and Surcharges rates times the second tier payroll. For 2011'J012the Normal Cost and Surcharges percentage savings is (17.16496+1.02196)-(15.72596+0.00096) = 2.46096. Based wnthe 2009valuation,the ultimate employer annual dollar savings would then be 2.5%times the second tier fiscal year payroll. The Risk Pool's Payment on Amortization Bases is a temporary adjustment to the pool's contribution to"get the pool back on schedu|e".This temporary adjustment varies in amount and duration from pool to pool. As of June 30, 2009 Existing Plan New Second Tier Plan 3.0%@50 and One- 3.0%@55 and Three-Year Final Year Final Compensation for newly hired Compensation Fire members 2011-2012 Employer Contribution Rate: Risk Pool's Net Employer Normal Cost 17.164% 15.725% Risk Pool's Payment on Amortization Bases 5.927% 4.583% One-Year Final Compensation 1,021% 0.000% Phase out of Normal Cost Difference 0,000% 0.0000/0 Amortization of Side Fund 5.97811/o 0.000% Total Employer Contribution Rate 30,090% 20.308% 2011-2012 Employee Contribution Rate 9.000% 9.000% California Public Employees'Retirement System nvwvv.ca|pers.ca.g*n SAFETY PLAN OF THE CITY OF ATASCADERO(CALPERS ID: 1298901388) February 2012 Page 2 For 2012-2013 the percentage savings is(17.245%+1.025%) -(15.52411/o+0.000%) = 2.746%. Based on the 2010 valuation,the ultimate employer annual dollar savings would then be 2.70/o times the second tier fiscal year payroll. The Risk Pool's Payment on Amortization Bases is a temporary adjustment to the pool's contribution to"get the pool back on schedule".This temporary adjustment varies in amount and duration from pool to pool. As of June 30, 2010 Existing Plan New Second Tier Plan 3.0%@50 and One- 3,0%@55 and Three-Year Final Year Final Compensation for newly hired Compensation Fire members 2012-2013 Employer Contribution Rate: Risk Pool's Net Employer Normal Cost 17.245% 15.524% f Risk Pool's Payment on Amortization Bases 6.436% 4.533% One-Year Final Compensation 1.025% 0.000% Phase out of Normal Cost Difference 0.000% 0.000% Amortization of Side Fund 6.314% 0.000% Total Employer Contribution Rate 31.020% 20.057% 2012-2013 Employee Contribution Rate 9.000% 9.000% To initiate an amendment to the contract, please fallow the Contract Amendment Report process on MyCaIPERS with our Retirement Contract Services Unit, indicating your wish to contract for Section 20475 (Different Level of Benefits) and identifying the group(s)to which the benefit reduction applies. In sections 20463 (b) and (c), the California Public Employees' Retirement Law requires the governing body of a public agency within five days of receipt of the contract amendment cost analysis, to provide each employee organization with a copy of the analysis. If this cost analysis was requested by an employee organization, the employee organization is also required within five days of receipt of the analysis,to provide a copy of the analysis to the public agency. The June 30, 2010 Section 2 Risk Pool actuarial valuation report applicable to your new second tier plan can be viewed on the following website: http://wviw.calpers.ca.gov/index.jsp?bc=/employer/actuaria I-gasb/risk-pooling/val uation-reports.xmi If you have questions, please call(888)CaiPERS(225-7377). BARBARA J. WARE, FSA,MAAA Enrolled Actuary Senior Pension Actuary,CaiPERS ��| �� �[)|\ ��- _ ~ Colifornjo Public Employees' Retirement System Actuarial Office P.O. Box Q4278Q Sacramento, CA 94229'2709 TTY: (B1S) 785'324O Cal (888) 225-7377 phone ^ (818)795-2744fax VAP vvww.cm/p*rm.ca.Qpv ^"'^ February 01, 2012 CALPERS ID: 1298901388 Employer Name: CITY OFA7ASCADERO Rate Plan: SAFETY PLAN Re: Now Second Tier Plan (Section 20475/ Different Level ofBenefits Provided for New Employees; Section 21363.1: 3.0%@55 Full Formula; Section 20037:Thnee'YearF|na|Compensation) ForFWe-MemheraOnly 5, worn Ob\'�ea DearRequeston In the tables below, we show your 2011-2012 and 2012,3013 employer contribution rates before and after opening a second tier. Ofthe rate components shown below,the ficsttwo are specific tothe pool towhich the plan belongs and others are specific toyour agency. However,the Phase out of Normal Cost Difference will normally beU96beginning with rates established for l011'2V14xo¢has nuimpact from that time on. The Side Fund will continue tobepaid off bythe first tier plan since all the past service onwhich ¢|sbased belongs to those current members who will continue in the first tier. The scheduled dollar amounts payable will continue an before. However, because newly hied members will be covered by the second dor, the number of members and payroll in the first tier will (after several years) gradually decline. The Amortization o[Side Fund rate component is the dollars needed tupay off the side fund divided hythe payroll, 5oaslong asthe Side Fund remains,the first tier rate will increase as its payroll decreases. The first tier side fund is scheduled to be paid off after 13 yeas from June 30, 2012, Therefore,in determining the employer contributions savings,Amortization of Side Fund should be excluded, For your agency,the ultimate annual employer savings equals the difference between the Normal Cost and Surcharges rates times the second tier payroll, For 2U11-Z012the Normal Cost and Surcharges percentage savings iy (17.16496+1.02196) '(15.725Y6+0.00096) = 2.46096. Based on the 200Svaluation,the ultimate employer annual dollar savings would then be 2.5%times the second tier fiscal year payroll. The Risk Pool's Payment on Amortization Bases is a temporary adjustment to the pool's contribution to"get the pool back on schedule".This temporary adjustment varies in amount and duration from pool to pool. As of June 30, 2009 Existing Plan New Second Tier Plan 3.0%@50 and One- 3.0%@55 and Three-Year Final Year Final Compensation for newly hired Compensation Fire members 2011-2012 Employer Contribution Rate: Risk Pool's Net Employer Normal Cost 17,164% 15,725% Risk Pool's Payment on Amortization Bases 5.927% 4.583% One-Year Final Compensation 1.021% 0.000% Phase out of Normal Cost Difference 0,000% 0.000% Amortization of Side Fund 5,978% 0,000% Total Employer Contribution Rate 30,090% 20,308% 2011-2012 Employee Contribution Rate 9.000% 9.000% California Public Employees'Retirement System vvvvw.ca|pera.ca.gmv SAFETY PLAN OF THE CITY OF ATASCADERO (CALPERS ID: 1298901388) February 2012 Page 2 For 2012-2013 the percentage savings is(17.245%+1.025%)-(15.524%+0.000%) = 2.746%. Based on the 2010 valuation,the ultimate employer annual dollar savings would then be 2.7%times the second tier fiscal year payroll. The Risk Pool's Payment on Amortization Bases is a temporary adjustment to the pool's contribution to"get the pool back on schedule".This temporary adjustment varies in amount and duration from pool to pool. As of June 30, 2010 Existing Plan New Second Tier Plan 3.0%@50 and One- 3.0%@55 and Three-Year Final Year Final Compensation for newly hired Compensation Fire members 2012-2013 Employer Contribution Rate: Risk Pool's Net Employer Normal Cost 17.245% 15.524% Risk Pool's Payment on Amortization Bases 6.436% 4.533% One-Year Final Compensation 1.025% 0.000% Phase out of Normal Cost Difference 0.000°/% 0.000% Amortization of Side Fund 6.314% 0.000% Total Employer Contribution Rate 31.020% 20.057% 2012-2013 Employee Contribution Rate 9.000% M00% To initiate an amendment to the contract,please follow the Contract Amendment Report process on MyCalPERS with our Retirement Contract Services Unit, indicating your wish to contract for Section 20475 (Different Level of Benefits) and identifying the group(s)to which the benefit reduction applies. In sections 20463 (b) and (c), the California Public Employees' Retirement Law requires the governing body of a public agency within five days of receipt of the contract amendment cost analysis, to provide each employee organization with a copy of the analysis. If this cost analysis was requested by an employee organization, the employee organization is also required within five days of receipt of the analysis,to provide a copy of the analysis to the public agency. The June 30, 2010 Section 2 Risk Pool actuarial valuation report applicable to your new second tier plan can be viewed on the following website: http://www-calpers.ca.gov/index.jsp?bc=/employer/actuarial-gasb/risk-pooling/valuation-reports.xmI If you have questions, please call(888)CalPERS(225-7377). BARBARA J. WARE, FSA, MAAA Enrolled Actuary Senior Pension Actuary,CalPERS ITEM NUMBER: C - 1 DATE: 05/08/12 n FR m l''lll� ff IF � C4 7 Atascadero City Council Staff Report — Public Works Department North County Transit Plan Presentation RECOMMENDATION: Council receive and file this report after presentation of the draft North County Transit Plan by SLOCOG transit consultant. DISCUSSION: A representative from Nelson \ Nygaard Consulting Associates, Inc., a transportation planning consultant retained by San Luis Obispo Council of Governments (SLOCOG), will be presenting the draft North County Transit Plan dated March 2012. While there are no final decisions or binding agreements before the City Council, the consultant is looking for comments on the concepts included in the presentation and outlined below. The final report will be presented to the SLOCOG Board on June 6, 2012. Once accepted by the Board, it is anticipated negotiations will begin later this year between SLOCOG, RTA and the cities of Atascadero and Paso Robles on potential implementation of modified transit service in the North County. The executive summary of the referenced report is attached as "Attachment 1," and the full report is available on the City's website. Background- Local transit in the North County historically has been provided by a coordinated effort between three transit operators. The North County Transit Plan has been a collaborative process led by SLOCOG and involving the three transit agencies. Representatives of the City of Paso Robles, the Regional Transit Authority (RTA), and the City of Atascadero have participated in a number of stakeholder meetings, ridership surveys, public workshops and numerous staff teleconferences, as the study developed over the past year. The study has analyzed the three independent operations, the services each provides, and the financial records of each operation. The study was funded by a grant obtained by SLOCOG. ITEM NUMBER: C - 1 DATE: 05/08/12 At initial meetings with SLOCOG, Paso Robles, and RTA staff, the City outlined the primary concerns regarding transit service in the North County, and more specifically Atascadero, namely: • Need for local control, • Improved system-wide efficiency, • Elimination of duplicate fixed route service on the EI Camino Real corridor, • Importance of Dial-a-Ride, • Protection of Transportation Development Act (TDA) funding. Providing transit service has always been challenging. The goal of this study was to identify efficiency improvements, opportunities for consolidated service, and outline programs to improve the viability of transit service to the North County. The City of Atascadero historically has been able to operate transit at or near the 20% fare box recovery ratio (FBR), by successfully adjusting fares and service hours to meet these revenue targets. In contrast, for the past three years, the City of Paso Robles did not meet the required FBR for their transit operation, and consequently was required to make a General Fund contribution to cover the shortfall amount. They have recently expressed an interest in transferring local transit services within the City of Paso Robles to RTA. The City of Atascadero transit services currently operate at an estimated 18% to 20% FBR. The 20% FBR has been increasingly difficult to meet since the reduction in the Cuesta College fixed route transit subsidy in 2011. Historically the City's fixed route revenue has been over the 20% FBR, while Dial-a-Ride has been under the required percentage by a like amount. The combined transit revenue historically has allowed the City to meet the requirement with minimal rate increases and adjustments to service hours. The consultant will present and review the four options considered in the report, namely: Alternative 1 : Minor Shift to Express Service — Added peak hour service on RTA Route 9, with midday reductions to 2-hour service. This alternative would also add service to the hospital and downtown Templeton. No local service changes. Alternative 2: Major Shift to Express Service — major shift to Express Service on RTA Route 9, and reductions to 2-hour regional connections all day, with the same service increases to Templeton. No local service changes. Alternative 3a: Consolidation of all fixed route in the North County to RTA, with no shift to express service; Route 9 would replace the EI Camino Shuttle (Atascadero) and the Paso Express Route C. Paso Robles and Atascadero retain Dial-a-Ride. ITEM NUMBER: C - 1 DATE: 05/08/12 Alternative 3b: Consolidation of all fixed route in the North County to RTA, including Paso Dial-a-Ride (operated by Runabout), with no shift to express service. Route 9 would replace the EI Camino Shuttle (Atascadero) and the Paso Express Route C. Atascadero retains Dial-a-Ride. The report concludes that the recommended option (Option 3b) is for consolidation of Paso Robles entire transit operation and only Atascadero's fixed route operation, leaving the City to continue to operate its Dial-a-Ride service. It estimates that this consolidation would result in an initial annual savings of approximately $350,000, and less over time. It also states that any consolidation would likely occur over a two-year transition period, allowing time for a negotiated Memorandum of Understanding between stakeholders, and other operational details. Community Impact: The consolidation of fixed route transit service in the North County has the potential to improve service to the transit rider, and reduce operating costs for the agencies providing transit service. Reduced operating costs may result in expanded or enhanced transit services by RTA, or additional LTF funds for local road maintenance. It also would create a single source for transit information (route maps, website, fare passes, etc.), improved Express Route service, and eliminate multiple transfers between operators, schedule conflicts, and long wait times at transfer points. The continuation of the Atascadero Dial-a-Ride could be impacted by increased pressure to raise fares to cover the loss of fixed route revenues in the future. If a reduced FBR percentage (from 20% to 10%-15%) can be negotiated, there would be little or no immediate effect on current fares. Should the City be subject to reduced revenue and realize General Fund impacts, other program or staffing reductions citywide may be necessary. Summary: The City Council will need to decide if consolidated transit service and associated overall operational savings is in the best interest of the City and its local riders; and if it believes that RTA can deliver: 1.) Cost effective service, and, 2.) Assurance to the City that Local Transportation Funds (LTF) are protected for the continued operation of Atascadero Dial-a-Ride and road maintenance. The second item is outside the purview of the consultant and their report, but will undoubtedly be the subject of future discussions with SLOCOG and RTA management. Analysis: Operating costs for transit currently include an allocation of staff time and general overhead that includes Transit Dispatch, portions of Public Works Administration and Administrative Services, and City Management. This is currently estimated at an aggregate of $150,000 per year. If the fixed route were to be consolidated with RTA there would be very little reduction to the City allocation to transit ITEM NUMBER: C - 1 DATE: 05/08/12 as most of the expense is associated with Dial-a-Ride. Local transit grant application processing as well as local bus stop maintenance may remain with the City. An additional, and perhaps most costly, potential impact of consolidation is reduction to the City's Local Transportation Fund (LTF) revenue. By reducing or eliminating transit operations the City may be vulnerable to lower or eliminated Transportation Development Act (TDA) funds. LTF funds are part of State TDA funds earmarked for transit, and secondarily road maintenance. Currently the City uses approximately $400,000 of LTF funds for road maintenance. The City of Atascadero is the only incorporated City in the County able to utilize this road maintenance funding option. The elimination of the LTF funds for road purposes would result in General Fund impacts, and potential reductions in other services based on future City Council budget priorities. In an effort to eliminate duplication of service and simplify transit use to the rider, Staff supports fixed route consolidation as it has the potential to save several hundred thousand dollars per year in operational costs. However consolidation should only be done if the City maintains reasonable local control and is made whole financially while continuing to operate our local Dial-a-Ride. The City does not have the ability to absorb any loss of revenue or increased operational costs in the current economy, and into the foreseeable future. The key to successfully consolidating North County transit operations will be in the details of the future negotiated MOU. There are potential unknown financial impacts to the City over the long-term, as TDA revenue is directed to transit operators. However, there will be little or no financial impact over the next two years, as the proposed implementation schedule for consolidation would not begin until the 2014 / 2015 fiscal year. There would be legal expenses associated with the development of an MOU, over the next 12 to 18 months. Once implemented the operation of a "Dial-a-Ride Only" system alternative would then have three years from the initiation date to meet the required Fare Box Recovery ratio. The General Fund would not be at risk of making a transit supplemental funding payment until 2017 / 2018 at the earliest should the FBR not be met. The consultant's report estimates system-wide savings of the preferred alternative would be an annual savings of over $300,000 initially. Staff recommends the Council support the concept of consolidated fixed route service by RTA, with continued City operation of its Dial-a-Ride service, and accept the report as presented. Future discussions of a potential MOU for North County Transit Service would then be brought back to the Council prior to initiation. ITEM NUMBER: C - 1 DATE: 05/08/12 FISCAL IMPACT: There is no fiscal impact for the Council to receive and file this report. There are potential unknown financial impacts to the City over the long-term, as TDA revenue is directed to transit operators. ATTACHMENTS: 1. Executive Summary from the North County Transit Plan, March 2012 by Nelson \ Nygaard Consulting. ITEM NUMBER: C - 1 DATE: 05/08/12 Attachment 1 Attachment 1 Executive Summary The Transit Plan for North San Luis Obispo County has been a collaborative effort led by the San Luis Obispo Council of Governments(SLOCOG)with the Cities of Atascadero and Paso Robles and the San Luis Obispo Regional Transit Authority(RTA). The comprehensive analysis of public transportation services has resulted in this Plan with recommended changes to the services and organizational structure of transit services in North San Luis Obispo County(North County hereafter).This Plan covers a seven year time frame,from FY 2012/13 through FY 2018/19. Transit services in North County are provided by three separate transit providers. RTA operates Route 9,a regional service running hourly north-south between Paso Robles and San Luis Obispo with limited service to San Miguel.Major transfer points are located at the route's anchors—the North County Transportation Center and the San Luis Obispo Transit Center—as well as the Las Tablas Park and Ride and Atascadero City Hall. Local services are provided by the Cities of Atascadero and Paso Robles. The City of Atascadero provides an extensive weekday dial-a-ride service throughout the City and an hourly fixed route service called the El Camino Shuttle. On Saturdays,a limited service known as the Saturday Traveler connects major destinations within the Atascadero city limits. The City of Paso Robles operates three local routes(Routes A,B and C)on hourly headways that circulate throughout the City Monday through Saturday. Route C and the El Camino Shuttle were implemented as a replacement to the North County Shuttle (NCS)when it was discontinued in July 2011. The NCS was a cooperative service that operated between Atascadero and Paso Robles. With the two replacement routes,riders traveling between Atascadero and Paso Robles and who choose not to use RTA Route 9 now have to transfer between the services at Las Tablas Park&Ride. RECOMMENDATIONS This is a unique plan because there are both local and regional transit services that serve markets with diverse goals and needs in North County.The Plan provides a variety of recommendations for enhancing, consolidating,marketing and monitoring transit services in North County. Key recommendations are as follows: ■ The three transit providers should adopt the goals and objectives in this plan to guide North County transit services. ■ The North County Urbanized Area Technical Committee should be expanded to oversee service consolidation. ITEM NUMBER: C - 1 DATE: 05/08/12 Attachment 1 ■ Continue status quo service for the next two years while taking the required steps to consolidate fixed route services and Paso Robles Dial-A-Ride under RTA. ■ The Cities of Atascadero and Paso Robles,RTA and SLOCOG should cooperatively work together to develop and implement a Memorandum of Understanding(MOU)that address all key elements to consolidate services. ■ Develop a plan for allocating operating savings due to consolidation. Options include further transit enhancements or returning local funds to the cities,or a combination of these options. ■ To improve the public's understanding of transit service availability in North County,develop a consolidated transit brochure/map,establish one centralized call number,and update websites to reflect planned consolidated services. ■ Procure one expansion vehicle for RTA Route 9; explore capital improvement modifications associated with the consolidated fixed route service plan. ■ Conduct studies and plan for Park N Ride expansion opportunities at 4th/Pine in Paso Robles and in Atascadero in the vicinity of Bank of America. ■ In FY 2014/15,implement the preferred service alternative(3B,described below). ■ Monitor service and assess whether RTA performance standards are being met. Report results to the City Councils and policy boards. ■ Pursue discretionary federal capital grants and explore opportunities for local funding enhancements. North County Profile North County includes the incorporated cities of Paso Robles and Atascadero as well as the unincorporated County communities of Templeton,Santa Margarita,San Miguel,and Shandon.The study area has a population of 68,477,roughly a quarter of all San Luis Obispo County residents. The North County urbanized area consists of the more densely populated Cities of Paso Robles and Atascadero as well as the non-incorporated areas of Templeton and Santa Margarita. Two rural communities outside of the urbanized area boundaries(San Miguel and Shandon)are also part of this plan study area.Figure o-1 displays the study area boundary for the NCTP as well as cities and communities within North County. There is a strong regional connection(in both directions)between North County and other parts of San Luis Obispo County(especially San Luis Obispo),as indicated by regional commute patterns. About 40% of employees in North County live outside of the area and about half of the workers in North County commute outside of the area for their job.Because the City of San Luis Obispo is the major cultural and employment center in the region,the vast open spaces between urbanized areas equate to long commutes for many of North County's residents,relatively high congestion,and growing travel times for both the drive alone and transit travel markets. ITEM NUMBER: C - 1 DATE: 05/08/12 Attachment 1 Figure 0-1 North County Overview _ MONTEREY COUNTY -- -7— J -- I 101 P so Robles j 5'k\r LT-TIS OBISPO COLIITY r 41 ri Zr— �S 4 101 41 I Atascadero ?+�, �` 58 1 Los Padres f" National Forest to:Padt� 101 �rahonal Forst _. 'G argarite _ � � 0 2 4 City Boundaries Miles � Urban Communites '� Data Sovees:Saniuis Obspo Cou^:y.=^P. ITEM NUMBER: C - 1 DATE: 05/08/12 Attachment 1 Public Outreach Public outreach for the North County Transit Plan was conducted in two phases.The first phase, completed in July 2011,consisted of a public focus group meeting and a key stakeholder meeting consisting of technical staff and elected officials from the Cities of Atascadero and Paso Robles and SLOCOG staff and Board members. The purpose of these meetings was to share preliminary findings on existing transit services and to obtain input about transit needs and priorities for improving service before developing service scenarios and organizational alternatives. Many similar themes emerged from these meetings. Key among them was interest in more limited-stop express service between North County and San Luis Obispo for faster travel times to downtown San Luis Obispo County. Riders noted that service is difficult to navigate because there are three separate systems,and multiple transfers between routes are confusing and often result in long wait times.Improving access to information about public transit services in a variety of formats was stated as a high priority. Other common themes were restoring service to downtown Templeton,later evening and earlier morning service and better transfer connections.There was also interest in testing a summer pilot service along Highway 41 to offer access to the coast for residents and tourists alike. Phase Two of the outreach process consisted of two public meetings held in January,2012,one in Atascadero and one in Paso Robles. The purpose of these two meetings was to present an update on the planning process and the proposed service alternatives to solicit comments and feedback. Support and preferences were for Alternative 3 (see discussion below on service alternatives)to consolidate fixed-route service in North County under the RTA to provide seamless travel between Atascadero and Paso Robles and San Luis Obispo.The public also strongly supported providing more express service and restoring service to Templeton. When asked to rank future service enhancements among three options,later evening service and the addition of a Sunday schedule to provide service seven days a week was most important. Service Plan Using data from the Existing Conditions report(submitted in July 2011), feedback from various focus groups and stakeholder interviews,and direction received from the North County Urbanized Area Technical Committee(Committee)three service alternatives(assuming the same level of funding)were developed. They are: Alternative 1:Minor Shift to Express Service—This alternative adds a moderate amount of peak-period express service on RTA's Route 9 but reduces midday service to every 2 hours during the midday period. The OL regional service,however,would be modified to serve downtown Templeton and Twin Cities Hospital. No changes are made to the local Z fixed route services provided in Paso Robles or Atascadero. C Alternative 2:Major Shift to Express Service—This alternative dramatically shifts resources on RTA's Route 9 to express services and - limits regional connections to every 2 hours throughout the day. As with Alternative 1,new service would be provided to downtown Templeton and RTA's Route 9 would also serve the Twin Cities Hospital. No changes are made to the local fixed route services provided in Paso Robles or Atascadero. Alternative 3: Consolidated Fixed Route Services under RTA—This alternative assumes a single transit operator in North County and consolidates all fixed route services(and the Paso Robles Dial-a-Ride)into ITEM NUMBER: C - 1 DATE: 05/08/12 Attachment 1 RTA. Rather than shifting to express services,RTAs Route 9 would replace the El Camino Shuttle in Atascadero and Paso Express Route C,thus providing a single-seat ride to most destinations in North County. Routes A and B in Paso Robles would remain unchanged. Based on feedback from the focus groups and Committee,it was clear that Alternative 3 was the most favorable alternative. However,prior to selecting this as the preferred alternative,the Committee agreed that it was important to develop a modification of Alternative 3 that also consolidates the Paso Robles Dial-A-Ride service(to be operated by Runabout). This alternative was referred to Alternative 3B while the Alternative 3 mentioned above was renamed Alternative 3A. To assist the Committee in selecting a preferred alternative,an evaluation matrix was developed that compared the alternatives to assess how well they satisfy the goals and objectives presented in Chapter 6. Other important criteria to evaluate the merits of each alternative include ridership estimates,projected operating costs and farebox recovery ratio for fixed route and dial-a-ride service. Figure 1-2 below presents this matrix.Based on this evaluation matrix and discussions with the North County Technical Committee,Alternative 3B was selected as the preferred option. To summarize,the preferred alternative—Alternative 3B—includes full consolidation of all fixed route services in North County as well as the local dial-a-ride operated in Paso Robles. The dial-a-ride in Atascadero would continue to be operated by the City of Atascadero.A schematic of the weekday stops is shown in Figure 1-3 and a map of the route is displayed in Figure 1-4. ITEM NUMBER: C - 1 DATE: 05/08/12 Attachment 1 Figure 0-2 Service Alternatives Evaluation Matrix Alternative 1 Alternative 2 Alternative 3A Alternative 313 All local and regional Major Shift to Express;less fixed routes merged into Minor Shift to Express; midday service on Rte 9; RTA;no more duplication Same as 3A except Paso Local Services remain local services remain on ECR;local DAR's Express Dial a Ride unchanged unchanged remain unchanged merges into RTA Improve schedule coordination :,i 4" Enhance express service # 4 Minimize duplicative service 0 Maximize opportunities for Park&Ride Lots �wo _p Maintain orexpand service to small communities Provide multimodal connections Explore service consolidation Support incentives for consolidation Public support Committee support Ridership Estimates Fixed Route Ridership(Plan year 3) 383,000 391,000 387,000 387,000 Dial-a-Ride Ridership 20,000 20,000 20,000 20,000 Operating Costs u 0 0 Fixed Route Farebox Recovery Ratio 0 0 Average Rating Average Score 2.5 2.9 3.5 3.6 Fully meets or exceeds 4 Partiallymeets 3 Partiallydoes not meet 2 Does not meet 1 ITEM NUMBER: C - 1 DATE: 05/08/12 Attachment 1 Figure 0-3 Alternative 313: Weekday Service by Existing or Proposed Stop 0) (J) a� t0 " 0 0 X CC E LU Q cr_ San Miguel Central San Miguel Paso Robles Cuesta College OT North County Transp. Center Park &Ride(4th and Pine) Target(Theater Drive) Templeton Las Tablas Park&Ride Twin Cities Hospital/Posada Lane Downtown Templeton Atascadero Northern Atascadero 0 Atascadero Transit Center Curbanl Park &Ride S Southern Atascadero Santa Margarita Downtown Santa Margarita Santa Margarita Park&Ride San Luis Obispo Cal Poly(two stops) SLO Government Center Note:Routes A and B in Paso Robles are not shown on this graphic but connect to RTA Route 9 at the North County Transportation Center. ITEM NUMBER: C - 1 DATE: 05/08/12 Attachment 1 Figure 0-4 Alternative 313: Consolidated Fixed Route North County Service ��. lu r,n taint. .ggrr. MONTEREY COUNTY Sari hued I Paso Robles zoo laarare 0 harga9lwtlwUr SAN Lt TIS OBISPO COUNI'1' N � ►A11N aduiriu.rn„� ?. Otalal� • .A� Atescadero � uas�M seem a RTA Route 9'Norfl County EVress' -8 RTA Route 9'North County Regcna (minor stop locations not exacti — Ror1e A B(Paso Rodes) 4ir PaiAv!ASn.nrA Awn MST Route 93 No RTA Regioned Connection �'Saaa Santa +,��, (� Transit Centcn f Primary Transfer Pan fytad�lr µ��� 0 2 4 City Boundaries IeSanlrKGtispo Miles UrbanCorrrrxmtes (Cad Poly,Gov't CM. Ora Lawvac 51000 ESRI ITEM NUMBER: C - 1 DATE: 05/08/12 Attachment 1 Service Expansion Options If additional funds are available for further enhancing transit services,then the following recommended transit expansion options should be considered. ■ Additional Express Trips—More express service was stated as a desired service improvement.If the preferred alternative does not include additional express service in North County,it should be considered as a high priority. The cost for providing one express round trip is approximately $50,000 annually. ■ Expanded Service Hours—One of the top service expansion priorities among existing passengers was the expansion of service hours. One hour earlier service and service later in the evening should be considered for Regional Route 9 and local service in Paso Robles on Routes A and B. ■ Sunday Service—Since local routes A and B in Paso Robles do not operate on Sunday,a limited service schedule on these routes would be desirable. ■ Service on Highway 41 to Morro Bay-Options to test this service are a vanpool program and traditional or flexible fixed route service operating only during summer months to attract residents and tourists alike. ■ Service Highway 46-Shandon to Paso Robles—Options include a flexible fixed route service operating on a regular schedule with deviations anywhere in Shandon to pick up or drop off passengers. Organizational Structure An important element of the North County Transit Plan was to review the current organizational structure of North County transit services and explore coordination,integration or consolidation alternatives that could improve the efficiency and effectiveness of transit services. To initiate this effort,the consultant conducted individual interviews with key stakeholders. Based on the feedback from these interviews,the goals and objectives developed for this Plan and the consultant's experience with transit service coordination and consolidation,four organizational alternatives were developed and are summarized below: 1. Status Quo with more formalized Coordination—The three separate transit providers would remain independent under this option. The only change would be to formalize existing arrangements with the existing North County Urbanized Area Technical Committee to further support the Committee for specialized coordination and marketing activities. 2. Administrative Consolidation—This option would be to consolidate Atascadero and Paso Robles' administrative functions with RTA to streamline administrative functions. RTA would serve as the lead agency and would absorb the cities'transit-related administrative functions,alleviating city staff of these responsibilities.From a practical perspective,consolidating administrations would be challenging and require significant effort from all three agencies. Given that the potential cost savings are minimal,the North County Transit Plan Committee did not support this option. 3. Partial Consolidation—This option would consolidate all fixed route services(Paso Robles fixed route services and the Atascadero-operated El Camino Shuttle and the Saturday Traveler)plus the Paso Robles Express Dial-A-Ride with RTA. A partially consolidated system would allow for more efficient operations because all routes would be part of one transit system and local and regional ITEM NUMBER: C - 1 DATE: 05/08/12 Attachment 1 services could be better integrated.Based on the numerous qualitative service benefits of consolidating fixed route services and potential cost savings, the Committee recommended this option. This is consistent with Preferred Service Alternative 3B,described above). 4. Full Consolidation—A fully consolidated transit system in North County would consolidate local and regional transit services under a single agency inclusive of fixed route and Dial-A-Ride services.This would require a single administrative structure and policy board that combines all transit services in a way that allows it to operate as one system. This plan has made major strides in advancing full consolidation with the proposed first step of merging fixed route services and Paso Robles Dial-Ride under an RTA operation. This will make this longer-term option easier and potentially more politically acceptable to transition to a fully consolidated system at a future date. Financial Plan Cost Comparison An important element of the financial plan was to demonstrate the estimated cost savings under fixed route consolidation and consolidation of Paso Robles Dial-A-Ride. Based on an agreed upon set of conservative assumptions,costs were projected and fixed route savings estimated at just under$364,000 1 as displayed in Figure 1-5. The major reasons for the cost savings under a fixed route consolidation are twofold: 1)there is a reduction in service hours because there is no longer duplicative service on El Camino Real with one consolidated Route 9 and 2)Atascadero and Paso Robles would no longer incur fixed costs2 associated with their fined route services. Dial-A-Ride costs are projected to be$48,000 higher than existing Dial-A-Ride costs under a Paso Robles Dial-A-Ride consolidation(Alternatives 3A and 3B)because Atascadero has estimated their fixed costs would increase when their dial-a-ride is a stand-alone service(i.e.,the City would no longer operate both fired route and dial-a-ride service). Costs are presented in FY 2014/15 dollars because it is assumed it will require two years to complete the consolidation process. 2 Fixed costs refer to cost elements such as office space,administrative support,computer maintenance costs and other non-variable cost items. ITEM NUMBER: C - 1 DATE: 05/08/12 Attachment 1 Figure 0-5 Comparative Costs Ar Existing Service Consolidated based on Consolidated Fixed Route All Figures Projected 2010/2011 Minor Shift To Focus on Fixed Route Service incl.Paso to FY 2014115 service levels Express Service Express Service Service Express DAR Fixed Route Service Estimated Fixed Route Costs RTA $1,087,099 $1,114,284 $1,111,894 Paso Robles $803,351 $803,351 $803,351 $1,747,692 $1,747,692 EI Camino Shuttle&Sat. Traveler $221,108 $221,108 $222,582 Est.Fixed Route Total Costs $2,111,558 $2,138,743 $2,137,826 $1,747,692 $1,747,692 Fixed Route cost savings (compared to existing services) $27,185 $26,268 ($363,866) ($363,866) Dial-A-Ride Service Estimated DAR Route Costs Runabout $540,193 $540,193 $540,193 $540,193 $692,126 Paso Express DAR $162,459 $162,459 $162,459 $162,459 Atascadero DAR $437,806 $437,806 $437,806 $485,819 $485,819 Est.DAR Total Costs $1,140,458 $1,140,458 $1,140,458 $1,188,471 $1,177,945 DAR cost savings (compared to existing services) $0 $0 $48,013 $37,487 Total savings (compared to existing services) $27,185 $26,268 ($315,853) ($326,379) Notes. Service hours and service miles for each alternative are estimated by NelsonlNygaard. Costs are calculated on a fixed,hourly and mileage cost basis for each alternative. Costs are based on 2009/2010 and 2010/11 figures provided by each service provider;March 2012. 25%of total Runabout hours,miles and costs are attributed to North County. Alternatives 3A and 36 eliminates fixed costs for Paso Express and Atascadero Fixed Route services and assumes RTA fixed costs remain the same. Costs are shown in FY 14/15 because consolidation in Alternatives 3A and 3B are not slated to occur until FY 14/15.All alternatives(including existing)are shown in FY 14/15 dollars. In Alternatives 3A and 3B,fixed DAR costs from Paso DAR are eliminated and replaced with the estimated DAR fixed costs based on the Nipomo DAR plus existing Runabout Fixed Costs. ITEM NUMBER: C - 1 DATE: 05/08/12 Attachment 1 Cost Projections and Funding Plan Operating costs were projected separately for fixed route and dial-a-ride service for the preferred service alternative(313)for seven years,beginning in FY 2012/13 through FY 2018/19. The costs assume status quo service for the first two years while steps are taken to implement the consolidated service plan. In the first two years of the plan,fixed route costs are estimated at approximately$2 million and then decrease to about$1.75 million in year 3 under the consolidated service plan.With constant service levels in the remaining four years of the plan,costs gradually increase to $1.9 million in FY 2018/19. Dial-a-ride service costs are approximately$1.08 million in the first two years of the plan and then in year 3,there is a slight jump in costs due to increased fixed costs Atascadero expects to incur when operating its dial-a-ride as a stand-alone service. Service levels for dial-a-ride remain the same in each year of the plan. The capital element outlines the number and type of vehicles required to support the consolidated service plan.New Park N Ride facilities are needed to support enhanced express service although they are not essential for service start-up and are programmed in outer years of the plan. Revenues to support transit service in North County are assumed to be the same sources relied upon today with modest gains consistent with the 2010 RTP. The seven-year funding plan presented in Figure 1-6 compares the total operating and capital costs to expected funding sources. It demonstrates that funds are adequate to support the service and capital plan plus allow for additional transit enhancements,return local funds to the cities or a combination. Implementation Plan The implementation strategy discusses the steps that need to be taken to implement the recommendations in the plan and the sequence in which they could be carried forward. It will require a wide range of activities,most of which will be led by RTA with the cooperation and coordination of the Cities of Atascadero and Paso Robles and SLOCOG. Early endorsement and support from policy makers and agency management will be a critical component for moving forward with consolidating services. In addition to the essential administrative first steps,the major tasks involved in implementing the recommended service plan focus on service planning,operations,marketing/public information,and capital and financial planning.Following the introduction of the new service in FY 2014/15,monitoring the effects on ridership,revenues and other key indicators will be critical. ITEM NUMBER: C - 1 DATE: 05/08/12 Attachment 1 Figure 0-6 Summary of Costs and Funding 'FY2012.13 FY 2013-14 FY 2014-15 FY 2015-16 FY 204-17 FY 2017-18 FY 201 S-1 9 Federal Funding FTA 5307 $732,160 $761,446 $791,904 $823,580 $856,524 $890,785 $926,416 FTA STIC $272,174 $285,782 $300,071 $315,075 $330,829 $347,370 $364,739 FTA Summary $1,004,334 $1,047,229 $1,091,976 $1,138,655 $1,187,352 $1,238,155 $1,291,155 State Funding TDA Summary (LTF+STA) $2,239,638 $2,269,396 $2,299,673 $2,330,480 $2,361,829 $2,393,733 $2,426,205 Fares Summary $622,509 $628,334 $624,776 $630,624 $636,530 $642,495 $648,520 Total Revenues $3,866,481 $3,944,960 $4,016,425 $4,099,759 $4,185,711 $4,274,383 $4,365,880 OPERATING COSTS Total Operating 1W1!! Costs FY i i i i %Jjj i Fixed Route Atascadero ECS $211,053 $215,528 Paso Express $785,819 $802,140 RTA $1,041,116 $1,063,856 $1,747,692 $1,785,548 $1,824,234 $1,863,767 $1,904,168 Subtotal $2,037,988 $2,081,525 $1,747,692 $1,785,548 $1,824,234 $1,863,767 $1,904,168 Dial a Ride Atascadero DAR $419,878 $428,747 $485,819 $496,031 $506,460 $517,110 $527,986 Paso DAR $155,800 $159,094 Runabout $517,917 $528,936 $692,126 $706,753 $721,693 $736,952 $752,536 6 Subtotal $1,093,595 $1,116,778 $1,177,945 $1,202,784 $1,228,153 $1,254,062 $1,280,522 Total Operating Costs $3,131,584 $3,198,303 $2,925,637 $2,988,333 $3,052,386 $3,117,829 $3,184,690 Total Capital Costs $242,634 $568,429 $539,691 $1,102,726 $774,314 $551,906 $445,757 Total Costs $3,374,218 $3,766,733 $3,465,328 $4,091,058 $3,826,700 $3,669,735 $3,630,447 SUMMARY FY i i i i i Total Revenues $3,866,481 $3,944,960 $4,016,425 $4,099,759 $4,185,711 $4,274,383 $4,365,880 Total Costs $3,374,218 $3,766,733 $3,465,328 $4,091,058 $3,826,700 $3,669,735 $3,630,447 Annual Balance $492,263 $178,227 $551,097 $8,701 $359,011 $604,648 $735,433 Cumulative Balance $492,263 $670,490 $1,221,587 $1,230,288 $1,589,299 $2,193,947 $2,929,380 Notes: Except for Atascadero,the 5307 dollars have historically been set aside for operating assistance. The level of capital funding that Atascadero Transit has used varied from year to year-see current POP table below. The Cuesta College subsidy($40K)is split based on Two Quarters FY 11112 actual ridership.The amounts to each organization are:$5,939(14.8%)to Atascadero,$27,366(68.4%)to Paso Robles and$6,695(16.7%)to RTA. There is no year to year growth in this college subsidy that provides for free rides to Cuesta students on all three systems. General passenger ridership is assumed to grow at a rate of 1%per year. The preferred alternative is scheduled for partial service consolidation occurring in fiscal year 2014-2015.