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HomeMy WebLinkAboutResolution No. 05-C042RESOLUTION NO. 05-C42 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF AZUSA, CALIFORNIA, CONFIRMING THE ENGINEER'S REPORT AND ASSESSMENT FOR THE 2005-2006 LANDSCAPING AND LIGHTING ASSESSMENT DISTRICT NO. 1 (COMMUNITY MAINTENANCE FEE) PURSUANT TO THE LANDSCAPING AND LIGHTING ACT OF 1972 WHEREAS, the City Council of the City of Azusa, California, ("the City Council"), did, on the 4`h day of April 2005, adopt Resolution of Intention No. 05-C42 (the "Resolution of Intention") to Levy an assessment within the City of Azusa Landscaping and Lighting Assessment District No. 1 (Community Maintenance Fee), pursuant to the provisions of the "Landscaping and Lighting Act of 1972" being Division 15, Part 2 of the Streets and Highways Code of the State of California (the "Act") for the fiscal year 2005-2006, which Resolution of Intention was duly and legally published in the time, form, and manner as required by law and shown by the Affidavit of Publication of Resolution of Intention on file in the office of the City Clerk; and WHEREAS, at the time and place for which notice was given, the City Council conducted a public hearing and gave every interested person an opportunity to object to the proposed work or assessment; and WHEREAS, the City Council having duly received and considered oral and documentary evidence concerning the necessity for the contemplated work and benefits to be derived therefrom, including the Engineer's Report, now has acquired jurisdiction to order the proposed assessments; NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF AZUSA, CALIFORNIA, DOES HEREBY RESOLVE, DETERMINE AND ORDER AS FOLLOWS: SECTION 1. The report filed by the City Engineer and each component part of it, including each exhibit incorporated by reference (the "Report"), is hereby finally approved and adopted. SECTION 2. The public interest and convenience require that the assessments within City of Azusa Landscaping and Lighting Assessment District No. 1 (Community Maintenance Fee) be levied and collected in the amount set out in the Report for the 2005-2006 Fiscal Year and the City Council hereby orders that such assessments be as set forth and described in the Resolution of Intention. SECTION 3. The adoption of this resolution shall constitute a levy of the assessment as set forth in the Report for the Fiscal year 2005-2006. SECTION 4. The City Clerk shall certify to the adoption of this resolution. 0 RESOLUTION NO. 05-C42 PAGE 2 OF 2 0 PASSED, APPROVED, AND ADOPTED this 2"d day of May 2005. /` (1 DIANE CHAONON, MAYOR I HEREBY CERTIFY that the foregoing resolution was duly adopted by the City Council of the City of Azusa at a regular meeting thereof, held on the 2" d day of May 2005, by the following vote of the Council: AYES: COUNCIL MEMBERS: HARDISON, CARRILLO, ROCHA, HANKS CHANGON NOES: COUNCIL MEMBERS: NONE ABSENT: COUNCIL MEMBERS: NONE ABSTAIN: COUNCIL MEMBERS: NONE eAou City Clerk 0 0 CITY OF AZUSA ENGINEER'S REPORT LANDSCAPING MAINTENANCE DISTRICT APRIL 2005 PREPARED BY THE CITY ENGINEER'S OFFICE 0 0 TABLE OF CONTENTS CURRENT FINANCIAL SUMMARY. INTRODUCTION 2 IMPROVEMENTS TO BE MAINTAINED METHOD OF ASSESSMENT 4 BOUNDARY 7 ASSESSMENT ROLL 8 DESCRIPTION OF IMPROVEMENTS 8 • CITY OF AZUSA LANDSCAPING MAINTENANCE DISTRICT FOR FISCAL YEAR 2003104 CURRENT FINANCIAL SUMMARY Estimated Uncommitted Fund Balance $0 (as of June 30, 2005) Proposed City Contribution for General Benefit Fiscal Year 05-06 $986,060 Proposed Assessment Revenue Fiscal Year 05-06 $140,370 Subtotal Revenue Landscape Maintenance Operating Expenses for FY 05-06 $1,126,430 Subtotal Expenses Estimated Uncommitted Fund Balance Balance as of June 30, 2005 • City of Azusa $1,126,430 $1,126,430 $o Landscape Maintenance District . City of Azusa Residential 60% of Park landscaping cost+l2=Assessment/mo. Commercial 40% of Park landscaping costs to be divided between small and large commercial and industrial parcels. Summary Tabulated below are the totalproposed 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. Implementation The Landscaping Maintenance Assessment will be assessed by addresses on the basis of the formula described 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 14411 be refundable upon closure of the account. The purpose of this advance is to reduce delinquency exposure to the City. .411 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 helshe meets the following criteria: I. The individual shall be certified as handicapped by the Azusa Light and Water Department. 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. BOUNDARY 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 as well as City Engineer's Office and incorporated herein by reference. For details ofspecific 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. Landscape Maintenance District Total Monthly Cost 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 Implementation The Landscaping Maintenance Assessment will be assessed by addresses on the basis of the formula described 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 14411 be refundable upon closure of the account. The purpose of this advance is to reduce delinquency exposure to the City. .411 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 helshe meets the following criteria: I. The individual shall be certified as handicapped by the Azusa Light and Water Department. 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. BOUNDARY 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 as well as City Engineer's Office and incorporated herein by reference. For details ofspecific 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. Landscape Maintenance District 0 • City of Azusa 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 . 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. 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. 3 Landscape Maintenance District 0 The estimated fiscal year expenditures for the proposed District are as follows: . City of Azusa 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 $17,150 Park Landscaping Maintenance $123,220 Total Amount to be funded through District $140,370 METHOD OF ASSESSMENT 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. Landscape Maintenance District 0 Benefit Determination • City of Azusa 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 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 findings, 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 Findings 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 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: Landscape Maintenance District • • City of Azusa 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. a. Vacant parcels or vacant units will not be assessed since there are no occupants who would benefit from community landscaping. a. 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: 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 asfollows: Residential 40% of Median landscaping cost=number of units-12=Assessment/mo. Commercial 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: Annual Residential $0.47 $ 5.64 Commercial & Industrial (5 or employees or less): $2.06 $24.72 Commercial & Industrial (6 or more employees): $5.77 $69.24 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: Landscape Maintenance District 0 INTRODUCTION • City ofAzusa This report is prepared 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 2005/06 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 orparcel 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 XIIIA 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 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 2005/06 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. Landscape Maintenance District 0 ASSESSMENTROLL • Ch) of Azusa Each parcel's Assessor Parcel Number (APN) and total assessment to be levied for Fiscal Year 2005-06 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 andpark maintenance within the District, are on file in the office of the City Clerk and incorporated herein by reference. Landscape Maintenance District Mike Scott,- Agenda Memo - LLD 2005 - Initiation of Hearing doc Highways Code. Attachment: Resolution Page -2 0