HomeMy WebLinkAboutResolution No. 99-C0420 0
RESOLUTION NO. 9g—ca2
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF AZUSA,
CALIFORNIA, DECLARING ITS INTENTION TO LEVY AND COLLECT
ASSESSMENT WITHIN CITY OF AZUSA LANDSCAPING AND
LIGHTING ASSESSMENT DISTRICT NO. 1 FOR FISCAL YEAR 1999-00
AND GIVING NOTICE OF AND SETTING OF TIME AND PLACE OF
HEARING ON THE LEVY OF SUCH ASSESSMENT
WHEREAS, on March 16, 1999, the City Council of the City of Azusa, California (the "City
Council') adopted its Resolution initiating proceedings for the annual assessments for "City of Azusa
Landscaping and Lighting Assessment District No. V pursuant to Landscaping and Lighting Act of
1972, Part 2 of Division 15 of the Streets and Highways Code of the State of California (the "Act"),
for the maintenance and servicing of streets, landscaping, parkways and median island; and
WHEREAS, in November 1996 the voters of the State of California passed Proposition 218
which added Articles XIIIC and XIIID to the California Constitution requiring, among other things,
new procedures for the approval of the levy of assessments against real property; and
WHEREAS, Article XIIID of the California Constitution requires that assessments comply
with stated procedural and approval provisions by July 1, 1997, unless an assessment district meets
certain exemptions set forth in Section 5 of the Article which exemptions include the following: "(a)
any assessment imposed exclusively to finance the capital cost or maintenance and operation expenses
of sidewalks, streets, sewers, water, flood control, drainage system or vector control."; and
WHEREAS, the assessments for the District proposed for the 1999-00 Fiscal Year are
exempt from Proposition 218 because the assessments generate revenue for the operation and
maintenance of streets and highways, all expenditures thereunder qualify under street maintenance
as defined by the State of California; and
WHEREAS, the Act also requires that the City comply with certain procedural and approval
procedures before levying this annual assessment under an existing assessment district; and
WHEREAS, the adoption of this Resolution, among other things, is required in order to levy
the proposed assessment for Fiscal Year 1999-00 for the assessment District; and
WHEREAS, on March 16, 1999, the City Council adopted Resolution No. 99-C38
directing that initial proceedings for the levy and collection of the assessment be commenced; and
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RESOLUTION NO. 99—C42
PAGE 2 OF 3
WHEREAS, by said Resolution the City Council order the City Engineer, the person
designated by this Council as the engineer to work for the assessment District to file a report with the
City Clerk in accordance with the Act; and
WHEREAS, the City Engineer has filed such re port with the City Clerk, and such report has
been presented to and was considered by the City Council.
NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF AZUSA ,
CALIFORNIA, DOES HEREBY RESOLVE, DETERMINE AND ORDER AS FOLLOWS:
SECTION 1. The City Council hereby declares that it is its intention to levy and collect
assessments for District No. 1 in the Fiscal Year 1999-00 pursuant to the Act. The area to be
assessed is located within the City of Azusa, Los Angeles County, California. The boundaries of
District No. 1 are described in Exhibit A attached hereto.
SECTION 2. The purpose of District No. 1 is for maintenance and servicing of landscaping
irrigation, parkways, medians and street lighting.
SECTION 3. The report filed by the City Engineer which is on file with the City Clerk and
which has been considered by the City Council at the meeting at which this Resolution has been
adopted, is hereby accepted by the City Council. All interested persons are referred to that report
for a full and detailed description of the work, the boundaries of the proposed assessment district and
the proposed assessments upon assessable lots and parcels of land within District No, 1,
SECTION 4. On Monday, May 17's, 1999, at the hour of 7:30 p.m. during the course of
its regularly scheduled meeting, the City Council will conduct a public hearing on the question of the
levy of the proposed annual assessment. The hearing will be held at the City Council Chambers at
213 East Foothill Boulevard, Azusa, California.
SECTION 5. The City Clerk shall give notice of the time and place of said hearing by
publishing a copy of this Resolution once in a newspaper of general circulation of the City of Azusa,
not less than ten days before the date of the hearing.
SECTION 6. This Resolution is adopted pursuant to Section 22622 of the Streets and
Highways Code.
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RESOLUTION NO. 99-C42
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PASSED, APPROVED AND ADOPTED this 5" day of April, 1999.
CRISTINA CRUZ -MADRID, MAYOR
STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES )ss
CITY OF AZUSA )
I, Adolph Solis, City Clerk of the City of Azusa, do hereby certify that the foregoing
Resolution No. 99-C42 Was duly introduced and adopted as a resolution by a four-fifths vote
at a regular meeting of the City Council of the 5th Apt .1999, by the following vote, to wit:
AYES: COUNCIL, MEMBERS: HARDISON, STANFROD, ROCHA, BEEBE
MADRID
NOES: COUNCIL MEMBERS: NONE
ABSENT: COUNCIL MEMBERS: NONE
ABSTAIN: COUNCIL MEMBERS: NONE
, City Clerk
APPROVED AS TO FORM
Y�-�—
City Attorney
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CITY OF AZUSA
ENGINEER'S REPORT
LANDSCAPING MAINTENANCE DISTRICT
MARCH 1999
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PREPARED BY THE CITY ENGINEER'S OFFICE
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TABLE OF CONTENTS
CURRENT FINANCIAL SUMMARY
INTRODUCTION
IMPROVEMENTS TO BE MAINTAINED
METHOD OF ASSESSMENT
1 t11111►`I IZ\
`A
7
13
ASSESSMENT ROLL 13
DESCRIPTION OF IMPROVEMENTS 13
• • City ojAzusa
CITY OF AZUSA
LANDSCAPING MAINTENANCE DISTRICT
FOR FISCAL YEAR 1999/00
CURRENT FINANCIAL SUMMARY
Estimated Uncommitted Fund Balance $0
(as of June 30, 1998)
Proposed City Contribution for General Benefit
Fiscal Year 98-99 $986,060
Proposed Assessment Revenue
Fiscal Year 98-99 $140,370
Subtotal Revenue $1,126,430
Landscape Maintenance Operating Expenses
for FY 98-99 $1,126,430
Subtotal Expenses $1,126,430
Estimated Uncommitted Fund Balance
Balance as of June 30, 1999
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INTRODUCTION
• City of Azusa
This report is prepare subsequent to Resolution of the City Council of the City of Azusa and in
compliance with the requirements of Article 4, Chapter 1, Landscaping and Lighting Act of 1972,
being Part 2, Division 15 of the Streets and Highways Code, State of California.
This report presents the engineering analysis for the Fiscal Year 1999/00 for the district known as:
City of Azusa
Landscaping Maintenance District
(Hereinafter referred to as "District")
Section 22573 of the Landscaping and Lighting Act of 1972, being Division 15, Part f2, of the
Streets and Highways Code, states that, "the net amount to be assessed upon lands within and
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." As the assessments are levied on the basis of
benefit, they are not a tax, and therefore, are not governed by Article XIHA of the California
Constitution.
In 1989, the City established the District. The City's formation of the District and the collection of
assessments on the utility rolls have been validated pursuant to California Code of Civil Procedures
Section 860. The judgement in the validation action states that:
A. "All actions taken, including levying of assessments, pursuant to the District, were and are
lawful and in full force and effect," and,
B. "All persons are hereby permanently enjoined from instituting any action or proceeding
raising any issue as to the validity of the District and benefit assessments levied pursuant
thereto, or any other issue as to which this judgement is binding and conclusive."
The existing District provides for annual assessments to pay for maintenance of median landscaping,
lighting and parks. The City contracts for the services needed to carry out the purpose of the
District. The City has and continues to rely on the District assessment revenue to finance these
contracts and legally does so in reliance on its validation action. Because the District is validated
and the judgement validating the District permanently enjoins any person from instituting any action
or raising any issue as to the validity of the District and assessments levied, the District is no subject
to Proposition 218.
Even if the District and the annual levies were not validated, the assessments would to some extent
be exempt from Proposition 218, which added Articles XIIIC and XIIID to the California
Constitution requiring new procedures for assessment districts. Article XIIID requires that
assessments comply with the stated provisions by July 1, 1997, unless an assessment district meets
2 Landscape Maintenance District
• • City of Azusa
certain exemptions. The exemptions from the procedural and approval requirements are set forth
in Section 5 of the Article and include the following:
"(a) any assessment imposed exclusively to finance the capital costs or maintenance and
operation expenses for sidewalks, street, sewers, water, flood control, drainage system or
vector control."
The District qualifies as an existing assessment with the District funding items for Fiscal Year
1998/99 that are considered exempt under provision (a) quoted above, specifically "streets". Using
the definitions provided by the Office of the Controller for the State of California in the Guidelines
Relating to Gas Tax Expenditures published by the Division of Local Government Fiscal Affairs,
street improvements include street lighting and parkway and median landscaping.
Improvements
The items that may be funded through the District are defined in the Landscaping and Lighting Act
of 1972 (the "1972 Act") as Improvements. The Act defines Improvements to include the
installation, maintenance and servicing of several types of landscaping and park and recreational
improvements and facilities as shown below.
Installation
The installation or planting of landscaping.
The installation or construction of statuary, fountains, and other ornamental
structures and facilities.
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, including, but not limited to, grading, clearing, removal of
debris, the installation or construction of curbs, gutters, walls, sidewalks, or
paving, or water, irrigation, drainage, or electrical facilities.
The installation of park or recreational improvements, including, but not
limited to, land preparation, such as grading leveling, cutting and filling, sod,
landscaping, irrigation systems, sidewalks, and drainage; lights, playground
equipment, play courts, and public rest rooms.
The acquisition of land for park, recreational, or open -space purposes.
The acquisition of any existing improvement otherwise authorized.
Maintenance
Maintenance means the furnishing of services and materials for the ordinary and
usual maintenance, operation, and servicing of any improvement, including:
Repair, removal, or replacement of all or any part of any improvement.
Providing for the life, growth, health, and beauty of landscaping, including
cultivation, irrigation, trimming, spraying, fertilizing, or treating for disease
or injury .
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• City ojAzusa
The removal of trimmings, rubbish, debris, and other solid waste.
The cleaning, sandblasting, and painting of walls and other improvements to
remove or cover graffiti.
Servicing
Servicing means the furnishing of electric current, or energy gas or other illuminating
agent and water for the irrigation of any landscaping, the operation of any fountains,
or the maintenance of any improvements.
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• City of Azusa
IMPROVEMENTS TO BE MAINTAINED
Median Landscaping
Maintenance of the 12.6 acres of median landscaping in the City is currently accomplished by a
private firm under contract with the City. These services include mowing, weeding, trimming,
fertilizing, replacement of plant material, personnel and equipment costs. This is further
supplemented by City services in the areas of administration, cultivation, irrigation systems
maintenance and utility costs. For the location of the landscaped medians, see the City of Azusa's
aerial photographs, which are by reference, made a part of this Report.
Park Landscaping
There are seven parks in the City comprising a total of 50.8 acres. City staff maintains all park
landscaping. Services include mowing, weeding, trimming, fertilizing, replacement of plant
materials, irrigation, irrigation system maintenance, cultivation, utility and equipment cost,
administration and personnel costs.
Graffiti Removal
Graffiti removal will be performed on property throughout the City as required to enhance the beauty
of the City.
Estimate of the Costs of Improvements
The 1972 Act provides for the recovery of operations and maintenance costs and incidental expenses
of the District. Incidental expenses include engineering and legal fees, printing, mailing, postage,
publishing and all other costs required to continue the District.
The 1972 Act requires that a special fund be set up for the revenues and expenditures of the District.
Funds raised by assessments will be expended only for the improvements authorized for the District.
A contribution to the District by the City will be made to reduce assessments as the City Council
deems appropriate.
The total amount to be raised by assessment must be used for the purposes outlined in this report.
Any balance remaining on June 30, each year must remain in the fund and must be carried over to
the following fiscal year.
Landscape Maintenance District
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• City of Azusa
The estimated 1998/99 fiscal year expenditures for the proposed District are as follows:
Cost Item
Cost
Median Maintenance
$32,320
Park Landscaping Maintenance
$964,110
Utilities
$84,000
Graffiti
$10,000
Incidental Expenses
$36,000
Total Cost
$1,126,430
City Contribution from other sources
$986,060
Total Amount to be funded through District
$140,370
Assessment Item
Cost
Median Maintenance
Park Landscaping Maintenance
$17,150
$123,220
Total Amount to be funded through District
$140,370
Landscape Maintenance District
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METHOD OF ASSESSMENT
• City of Azusa
The 1972 Act requires that maintenance assessments be levied according to the benefit received
rather than according to assessed value. Section 22573 states:
"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 Act also permits the designation of zones of benefit within any individual assessment district
if "by reasons or variations in the nature, location, and extent of the improvements, the various
areas will receive different degrees of benefit from the improvement" (Section 22574). Thus, the
1972 Act requires the levy of a true "assessment " rather than a "special tax ".
Unit Assessment Classification
Public landscaping is an important element of the urban environment. It adds beauty, aesthetics and
livability to the City, and enhances its image. These are important contributions to the quality of life
for all residents and businesses in the City. Public landscaping in the form of median landscaping
is for the enjoyment and benefit of all residents, businesses and employees in the City.
The Landscaping Maintenance Assessment must be assessed in a equitable manner, as stated in
Section 22573 of the 1972 Act. If the assessments were to be spread by a parcel without
consideration of land use, this would not be equitable because, for example, a single family parcel
would be paying the same as a 50 unit apartment building or a large commercial establishment.
In an attempt to fairly distribute the assessments, it is proposed that the occupants of property (who
actually benefit from landscape maintenance) be assessed the Landscaping Maintenance Assessment.
This approach is especially fair, in that over 50 percent (50%) of the properties in the City are tenant
occupied. The spread of the assessments will be according to addresses and land use and the
assessment will be added to the electric utility meter bills. Two zones of benefit are proposed: (1)
Residential; and (2) Commercial and Industrial.
Benefit Determination
The landscaping to be maintained consists of parks and street medians throughout the City. While
residential uses derive a portion of special benefit from median landscaping, their primary benefit
is derived from park landscaping, which residents enjoy to a greater extent than the business
community. An analysis of the location of parks reveals that the seven City parks are evenly
dispersed throughout the community, and easily accessible to all residents in the community. The
Community Services Department has indicated that the parks are heavily used. Businesses, on the
other hand, derive a greater benefit from median landscaping rather than parks because businesses
are primarily located on streets with median landscaping and their customers and employees enjoy
7 Landscape Maintenance District
• • City of Azusa
and appreciate such landscaping which enhances the business climate. However, businesses do
benefit from parks to the extent that employees utilize parks on lunch hours and after work. Most
of the City's parks are easily accessible and some are in close proximity to the City's business
districts.
Small businesses (defined as those having 5 employees or less) have a smaller benefit than larger
businesses (defined as more than 5 employees), because there are fewer employees and customers
to enjoy the median landscaping.
Based upon these finds, the following benefit ratios have been established:
Land Use Median Landscaping Parks Landscaping
Percentage of Benefit Percentage of Benefit
Residential 40% 60%
Commercial & Industrial 60% 40%
Basic Data and Findines
Basic Data
The following information was obtained from the City of Azusa Light and Water Department, the
Business License Division and the City of Azusa Department of Community Development.
Category
City
S.C.E. Co.
Total
Residential
10,103
203
10,306
Commercial & Industrial
(5 or less employees)
1,099
94
1,193
Commercial & Industrial
(6 or more employees)
292
25
317
Total
11,816
Findings
An analysis of the data available at the Azusa Department of Light and Water indicates that each
address with an electric meter generally corresponds to a residential, commercial or industrial unit.
The occupants of these units benefit from community landscaping, the maintenance cost of which
is proposed to be funded through the Landscaping Maintenance Assessment. The requirement of
the 1972 Act is that assessments must be levied according to the benefits received. By spreading the
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• • City of Azusa
assessments by addresses and by billing on the electric meter bills, the users who receive the benefits
are directly assessed.
The 1972 Act allows for assessments by parcels to be collected on the tax rolls. This results in the
property owner having to pass through the assessments to the tenants who are actually the recipients
of the services. There are no assurances that such pass-throughs are handled in an equitable manner.
The method proposed herein would assess the user fairly and directly be address. This will be done
according to land use such as residential, commercial and industrial. Other users will be assessed
and billed as described below:
a. Master metered units. There are 5 mobile home parks and one apartment complex
with a total of 479 units that have master electric meters in the City. It is estimated
that approximately 60 percent (287) of these units are exempt from the assessment.
Each master meter will be assessed for the total number on non-exempt units it
services at the residential rate.
b. Vacant parcels or vacant units will not be assessed since there are no occupants who
would benefit from community landscaping.
C. Areas not served by the City of Azusa Light and Water Department. There are a few
small areas in the City of Azusa which are served by Southern California Edison Co.
These areas will be assessed in the same manner as the rest of the City. Billings for
the assessments will be on the water utility bills.
Median Landscaping
There are approximately 12.6 acres of landscaped medians in the City, all of which are located along
major and secondary highways as designated in the Circulation Element of the General Plan.
The City provides median landscaping maintenance under contract with a private firm. The
estimated median landscaping cost to be assessed this year is $17,150. Utilizing the benefit ratio
presented above, the following assessments are proposed to be charged on each electric meter bill:
Land Use Monthly Annual
Residential $0.05 $0.60
Commercial & Industrial (5 employees or less): $0.44 $5.28
Commercial & Industrial (6 or more employees): $1.23 $14.76
In areas served by Southern California Edison Company these assessments will be collected on the
water bill by the City.
The above assessments are calculated as follows:
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Residential
40% of Median landscaping cost- number of units =12=Assessment/mo.
Commercial
City of Azusa
60% of Median landscaping cost, to be divided between small and large commercial and
industrials parcels.
Park Landscaping
There are approximately 50.8 acres of City parks, all of which are extensively improved with
landscaping which must be maintained. The estimated park landscaping cost to be assessed this year
is $123,220. Utilizing the benefit ratio presented above, the following assessments are proposed to
be charged on each electric meter bill:
Land Use I Monthly I Annual
Residential $0.53 $ 6.36
Commercial & Industrial (5 or employees or less): $2.31 $27.72
Commercial & Industrial (6 or more employees):
$6.47 $77.64
In areas served by Southern California Edison Company these assessments will be collected on the
water bill by the City.
The above assessments are calculated as follows:
Residential
60% of Park landscaping cost-12=Assessment/mo.
Commercial
40% of Park landscaping costs to be divided between small and large commercial and
industrial parcels.
Summary
Tabulated below are the total proposed assessments for the District by land use, which will be
charged on each electric bill or water bill. Parcels served by Edison Company will be billed on the
water bill.
10 Landscape Maintenance District
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Total Monthly Cost
• City of Azusa
Land Use Median Park Total
Residential: $0.05 $0.47 $0.52
Commercial & Industrial
(5 employees or less): $0.44 $2.06 $2.50
Commercial & Industrial
(6 or more employees): $1.23 $5.77 $7.00
Total Annual Cost
Land Use Median Park Total
Residential: $0.60 $6.36 $6.96
Commercial & Industrial
(5 employees or Less): $5.28 $27.72 $33.00
Commercial & Industrial
(6 or more employees): $14.76 $77.64 $92.40
Implementation
The Landscaping Maintenance Assessment will be assessed by addresses on the basis of the formula
describe in this Report and will be collected monthly on the electric utility bill. Areas served by the
Southern California Edison Company will be billed on the City's water bill.
All new water and electric utility meter applicants will be notified at the time of application of the
Landscaping Maintenance Assessment, and will be required to deposit a two (2) month advance of
the fee, which will be refundable upon closure of the account. The purpose of this advance is to
reduce delinquency exposure to the City. All delinquent accounts will be subject to collection using
a variety of methods available to the City, which may include the use of a collection agency, billing
the property owner (but only after appropriate and timely notification as provided for by the State
law), etc.
Exemptions
Certain persons may be exempt from this Landscaping Maintenance Assessment if he/she meets the
following criteria:
1. The individual shall be certified as handicapped by the Azusa Light and Water
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Department.
• City of Azusa
2. The individual shall be certified as "low-income" using standards developed by the
Azusa Light and Water Department.
3. Organizations classified as exempt from taxation under Chapter 501 of the Internal
Revenue Code.
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•
BOUNDARY
• City of Azusa
The City of Azusa Landscaping Maintenance District includes all parcels of land within the City's
boundaries.
A map showing the exterior boundaries of the District is on file in the City Clerk's Office and
incorporated herein by reference.
For details of specific addresses and utility meters, as well as details of assessments, see the City of
Azusa official base maps on file in the Department of Community Development, and the listing of
assessments, addresses and utility meters, on file in the City Clerk's office. All of these documents
are reference herein and made a part of this Report.
ASSESSMENT ROLL
Each parcel's Assessor Parcel Number (APN) and total assessment to be levied forFiscal Year 1999-
00 is shown on the assessment roll for the District on file in the City Clerk's Office and incorporated
herein by reference. Reference is made to the Los Angeles County Assessment roll for further
description of the parcels in the District.
DESCRIPTION OF IMPROVEMENTS
Plans and Specification for Median Maintenance. Maps showing the location of medians within
the District, and specifications describing the general nature, location and extent of median and park
maintenance within the District, are on file in the office of the City Clerk and incorporated herein
by reference.
13 Landscape Maintenance District