HomeMy WebLinkAbout2016-05-24 - AGENDA REPORTS - ANNUAL LEVY ASSESS SD (2)4. Golden Valley Ranch Open Space Maintenance District (GVROSMD).
5. Tourism Marketing District (TMD).
The attached Resolutions direct Willdan Financial Services (Willdan) to prepare assessment
Engineer's Reports for the City's LMD, DBAA, SMD, and GVROSMD Districts for approval by
the City Council. This action also schedules a Public Hearing to consider the Fiscal Year (FY)
2016-17 assessment rates recommended for these special districts, as well as the City's TMD.
The proposed special districts actions are authorized by State Law as outlined in Article XIIID of
the California Constitution (Proposition 218) and required to levy assessment on properties
receiving special benefits. If the recommendations are approved, a Public Hearing for ordering
the FY 2016-17 levies will be scheduled for the June 28, 2016, City Council meeting.
Descriptions of the four special districts and the Tourism Marketing District follow.
Landscape Maintenance District (LMD)
Fifty-five financially independent Landscape Maintenance District (LMD) zones are
administered by the City. These combined LMD zones, primarily administered through
contracts, encompass over 1,300 acres of landscape areas including street medians, parkways,
side -panels, 11 parks, numerous monument signs, more than 20 miles of paseos, approximately
60,000 trees, and 46 miles of landscaped medians.
Each LMD zone confers a special benefit upon properties through the installation and
maintenance of landscape and ornamental features. Approximately 30,000 homes and
businesses within LMD zones, comprised of varying size and amenities, financially contribute to
supporting these by way of a special assessment appearing on their annual property tax bill. The
City takes a very conservative fiscal approach to the management of the zones, has implemented
many cost -savings measures, and aggressively rebids landscape contracts to ensure operational
costs remain competitive.
Where rate escalators have been authorized by parcel owners and are a component of the base
rate, the maximum annual assessment rate adjusts automatically. The City Council may levy
assessment rates up to or less than the maximum assessment rate. While maximum assessment
rates adjust automatically, the actual assessment levied each year must be approved by the City
Council as part of a noticed public hearing.
For FY 2016-17, the Annual Consumer Price Index (CPI) increase for the previous year through
December 2015 is approximately two and three -tenths of a percent (2.03%). For FY 2016-17,
staff is recommending the City Council levy less than the maximum allowable rate for 67% (37
of 55) of the City's active Landscape Maintenance District zones. The inclusion of CPI
escalators allows the City to maintain and provide a consistent level of landscape service to each
of the LMD zones as maintenance costs increase from year to year. CPI escalators also allow the
City to be responsive to requests identified by the community for new projects and adequately
fund for future capital reserve needs.
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watering all remaining turf located within major thoroughfare medians. Based on these actions,
in calendar year 2015, the City's LMD operation reduced its water usage by 44% as compared to
usage in our benchmark year of 2013. In total, Special Districts reduced its total water usage by
more than 546 million gallons in 2015.
During the next several years, the City intends to begin removing all remaining turf from our
older medians and replacing it with low -water -use plants. This effort will commence with the
removal and replacement of all turf in the median along Valencia Boulevard, which is expected
to begin this summer and be completed by the end of 2016.
Finally, to ensure compliance with the Political Reform Act as contained in Government Code
Sections 81000 through 91014, a separate agenda item and resolutions have been prepared for
proceedings required for LMD Zones T23 and T23A.
Drainage Benefit Assessment Areas (DBAA)
Eleven DBAAs are administered by the City. Each DBAA benefits properties by preventing
groundwater from rising to a point where property damage could occur and/or channeling
surface or sub -surface water to drainage areas. Combined, the DBAAs are equipped with 4
pump stations, 5 flow meters, 22 hydroaugers, 35 observation wells, and various surface and sub-
surface drainage systems. For FY 2016-17, staff is recommending the City Council levy the
maximum allowable rate for 9 of the City's 11 Drainage Benefit Assessment Areas.
Streetlight Maintenance District (SMD)
The Streetlight Maintenance District (SMD) benefits properties by funding energy and
maintenance costs associated with the streetlights and traffic signals. The SMD is comprised of
parcels that are part of the original district previously transferred to the City from Los Angeles
County and parcels that have been annexed into that district at a later date. There are
approximately 18,660 streetlights within the City. To keep up with the increased costs of
operating and maintaining the streetlighting system, it is recommended that the City Council
apply the maximum levy for each of the proposed rates.
As identified in Santa Clarita 2020, staff is evaluating the possibility of acquiring and taking over
operational maintenance of Southern California Edison's (SCE) streetlight system. If the
streetlight system is acquired, the City would realize significant annual operating savings, and
residents will benefit by increased response time to outages. SCE has prepared a valuation of
Santa Clarita's streetlight system, which they will present to City staff before the end of FY
2015-16. Upon receipt of this valuation, the City will prepare an analysis to quantify whether the
cost to purchase and operate our streetlights is financially advantageous. Staff will have one year
to complete this analysis and bring forth a recommendation to the City Council for consideration.
Golden Vallev Ranch Open Space Maintenance District (GVROSMD)
As a condition of project approval, the City Council required the Golden Valley Ranch
development to create an open space maintenance district. The Golden Valley Ranch Open
Space Maintenance District is comprised of 900 plus acres of natural and undeveloped land,
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which is administered by the City through contracts for park -ranger services. Trail maintenance
and open -space management within the District boundaries are also funded by the District. For
FY 2016-17, staff is recommending the City Council levy approximately 35% less than the
maximum allowable rate for the Golden Valley Ranch Open Space Maintenance District.
Tourism Marketing District (TMD)
As part of the 21 -Point Business Plan for Progress, the Tourism Marketing District (TMD) was
established to provide an assessment of two percent, assessed by local hotels on visitors. These
funds are used to market the City of Santa Clarita as a tourism destination and attract high-
quality, high -economic impact events to the City.
The recommended action for the Tourism Marketing District is authorized by the Parking and
Business Area Law of 1989 (Section 36500 et. seq. of the Streets and Highways Code of the
State of California), which permits the City to levy assessments on businesses within a business
improvement area and to use such proceeds for the benefit of the businesses within said area
For the Tourism Marketing District, each business in the benefit zone shall pay a charge of two
percent of total room rents charged and received from transient hotel guests who do not make the
hotel their principal place of residence.
ALTERNATIVE ACTIONS
Other direction as determined by the City Council
FISCAL IMPACT
There is no impact to the General Fund associated with these actions. Adequate funds to prepare
the attached Engineer's Reports were previously appropriated by the City Council as part of the
FY 2015-16 Annual Budget.
ATTACHMENTS
LMD FY 2016-17 Initiate Resolution
LMD FY 2016-17 Intent Resolution
DBAA FY 2016-17 Initiate Resolution
DBAA FY 2016-17 Intent Resolution
SMD FY 2016-17 Initiate Resolution
SMD FY 2016-17 Intent Resolution
GVROSMD FY 2016-17 Initiate Resolution
GVROSMD FY 2016-17 Intent Resolution
TMD FY 2016-17 Intent Resolution
LMD FY 2016-17 Recommended Rate Table
LMD FY 2016-17 Engineer's Report (available in the City Clerk's Reading File)
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DBAA FY 2016-17 Engineer's Report (available in the City Clerk's Reading File)
SMD FY 2016-17 Engineer's Report (available in the City Clerk's Reading File)
GVROSMD FY 2016-17 Engineer's Report (available in the City Clerk's Reading File)
TMD FY 2016-17 Annual Report (available in the City Clerk's Reading File)
LMD FY 2016-17 Assessment Roll (available in the City Clerk's Reading File)
DBAA FY 2016-17 Assessment Roll (available in the City Clerk's Reading File)
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City of Santa Clarita
Combined Engineer's Report
Landscape Maintenance Districts
FISCALYEAR 2016/2017
Intent Meeting: May 24, 2016
Public Hearing: June 28, 2016
Prepared on: May 9, 2016
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I OVERWEW
A. INTRODUCTION
This report is prepared in compliance with the requirements of Article 4, Chapter 1 of the
Landscaping and Lighting Act of 1972, (hereinafter referred to as the "Act") which is Part
2, Division 15 of the California Streets and Highways Code.
Prior to Fiscal Year 1998/99, streetlight services in the City of Santa Clarita ("City") were
provided by a special benefit district administered by the County of Los Angeles. The
Santa Clarita area was included in two separate districts under the County's jurisdiction.
County Lighting District LLA -1 was formed on July 24, 1979 and was supplemented by the
existing County Lighting Maintenance District ("CLIVID 1867"). Upon incorporation of the
City of Santa Clarita in 1987, a Santa Clarita Zone was formed specifically for the area
within the City's boundaries. CLIVID 1867 and County Lighting District LLA -1 are
contiguous with each other and are wholly within the City's boundaries. However, County
Lighting District LLA -1 covers a greater portion of the City.
The District referred to as CLIVID 1867 is funded from ad valorem property tax revenue
pursuant to the Improvement Act of 1911, with the rate set by Proposition 13. The County
Lighting District LLA-1("LLA-1") was established and is funded by assessments levied
beginning in 1979 pursuant to the Landscape and Lighting Act of 1972 when new
annexations to the County Lighting District could no longer collect ad valorem revenue.
LLA -1 was established to cover the lights in the new annexation areas and to supplement
the current ad valorem revenue.
As of July 1, 1998, all streetlight districts are under the jurisdiction of the City as Streetlight
Maintenance District No. 1 ("District") (previously LLA -1) and No. 2 (previously CLIVID
1867) respectively. It is the City's responsibility to prepare and levy the annual
assessments necessary to maintain the streetlights within the District.
Upon the effective date of the transfer, the City assumed total responsibility for the
District's maintenance contract under which Southern California Edison provides the
required services. Pursuant to the Act, the City Council is now the legislative body for the
District and may levy annual assessments and act as the governing body for the operation
and administration of the District.
In future years, as territory is annexed into the City, annexation to the District will be a
condition of annexation to the City. In addition, any new development will also be required
to annex into the existing District. All new annexations will be annexed into Streetlight
Maintenance District No. 1, under the 1972 Act. It is not clear at this time whether the City
can collect ad valorem on any new annexations. This report includes all annexations that
have been approved by the Council prior to June 23, 2015.
The Act provides for the levy of annual assessments after formation of an assessment
district for the continued maintenance and servicing of the district improvements. The
costs associated with the installation, maintenance, and service of the improvements may
be assessed to those properties which are benefited by the installation, maintenance, and
service.
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This report addresses only Streetlight Maintenance District No. 1. District No. 2, the ad
valorem portion, is handled through the County Auditor and the State Board of
Equalization and is not acted upon by the City Council.
B. RIGHT TO VOTE ON TAXES ACT (PROPOSITION 218)
On November 5, 1996, the electorate approved Proposition 218, Right to Vote on Taxes
Act, which added Articles X111C and X111D to the California Constitution. The Proposition
affects all assessments upon real property for a special benefit conferred on the property.
Assessments imposed under the Landscaping and Lighting Act of 1972 are these types
of benefit assessments.
As written, Proposition 218 exempts assessments for street purposes. The maintenance
services in Streetlight Maintenance District No. 1 are for streetlights. They are an integral
part of the entire street, the same as curb gutters, pavement, signage and striping. They
are the elements that provide a safe route for motorists and pedestrians.
Streetlights are installed to make streets safer. Streetlights are installed to provide better
visibilityfor drivers. One hundred (100) percent of the illumination fromthe lights is directed
to the street, ninety (90) percent on the street side of the curb and ten (10) percent behind
the curb. The spacing of the lights is based on the speed of the vehicles and the natural
ability of the motorists' eyes to adjust to light and dark areas.
Most parcels included in the District were originally part of a development that was
conditioned to install streetlight improvements before the development could proceed.
Thereafter, each developer who was conditioned to enter into the District agreed to the
inclusion of their property in the District along with the assessments being imposed on
their property. Once the development was sold, all subsequent owners of parcels were
also made aware through title reports and Department of Real Estate "White Paper"
Reports that the parcels were in the District and subject to the assessments.
Article X111D, Section 5(a) of the State Constitution, provides that any assessment imposed
exclusively to finance the capital costs or maintenance and operation expenses for
sidewalks, streets, sewers, water, flood control, drainage systems or vector control, shall
be considered exempt from the procedures and approval process set forth in Section 4 of
Article XI I I D.
Streetlights are installed on and are for street purposes. They are maintained and serviced
for optimum use of the streets as intended in their design. Assessments for the
maintenance and servicing of the streets must include streetlights and therefore, the
assessments for Streetlight Maintenance District No. 1 are exempt under the provisions
of Proposition 218. This exemption applies only to assessments existing on the effective
date of Proposition 218, November 6, 1996, and the exemption is only from the procedures
and approval process set forth in Article X111D, Section 4. Subsequent increases, if any,
will be subject to the procedures and approval process of Section 4 of Article X111D.
All parcels included in Streetlight Maintenance District No. 1 prior to 1998 are covered by
this exemption and the maximum assessment rate for those parcels is $12.38 per
Equivalent Benefit Unit (EBU).
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Any other expenses incidental to the construction, installation, or maintenance
and servicing of the lighting improvements;
Any expenses incidental to the issuance of bonds or notes pursuant to Section
22662.5.
Costs associated with any elections held for the approval of a newor increased
assessment.
The 1972 Act defines "maintain" or "maintenance" to mean furnishing of services and
materials for the ordinary and usual maintenance, operation, and servicing of any
improvement, including the repair, removal, or replacement of all or any part of any lighting
improvement.
B. DESCRIPTION OF IMPROVEMENTS TO BE MAINTAINED AND SERVICED
Streetlight Maintenance District No. 1 was established to collect funds to cover the
expenses for energy and maintenance of a majority of streetlights in the City. These costs
are billed by the Southern California Edison Company for all approximate 17,843
streetlights currently owned and maintained by Edison and all approximate 989 streetlights
owned by the City. The proposed new and/or existing improvements for Streetlight
Maintenance District No. 1 include, but are not limited to, and may be generally described
as follows:
The installation of street lighting, traffic signals and other appurtenant facilities
that are necessary for the daily operation of said lighting located within City
road rights-of-way. Installation covers all work necessary for the installment or
replacement of said lighting and all appurtenant work necessary to complete
said installation or replacement.
The operation, maintenance, and servicing of all existing street lighting, traffic
signals, and other appurtenant facilities that are necessary for the daily
operation of said lighting located within City road rights-of-way. Operation,
maintenance, and servicing means all work necessary for the daily
maintenance required to maintain said lights in proper operation including
providing said lights with the proper energy necessary to operate the lights.
All improvements consisting of ornamental streetlights, mast arm streetlights and
appurtenant facilities do exist at the present time. The cost associated with these
improvements will be the cost of operations, maintenance and servicing during Fiscal Year
2016/2017.
Plans and Specifications for the improvements for the Streetlight Maintenance District are
voluminous and are not bound in this report but by this reference are incorporated and
made a part of this report. The plans and specification are on file at the City where they
are available for public inspection.
Locations of all streetlights are included on lighting inventory maps available for inspection
at the City.
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2016-2017 Fiscal Year Budget Estimates
Assessment - Levy A $483,003 $0
Assessment - Levy B 2,004,968 0
Ad Valorem 0 2,621,683
Interest 0 46,191
Other Fees 0 0
Personnel
$0
$4,861,617
Department
$228,379
$0
Other Administrative
133,400
64,940
Operations & Maintenance
1,002,442
(1,002,441)
Electric Utilities - Traffic Signals
0
230,000
Electric Utilities - Street Lights
3,045,000
0
Traffic Signal Maintenance
0
776,271
Contractual Services
57,000
275,000
Automotive Equipment
0
0
General Administration
18,660
19,647
Capital Improvements
Lighting (traffic signal LED)
0
0
Signal (traffic signal upgrades)
0
0
Total Expenditures
$3,482,439
$1,365,858
Transfers Out
Transfers Out to GASB 45 7,974 0
Reserve Requirement
Operatinq Reserves 0 682,929
Estimated Beginning Fund Balance (7/01/16)
$0
$4,861,617
Estimated Revenues
2,487,971
2,667,874
Estimated Expenditures
(3,482,439)
(1,365,858)
Transfers In (Out) between SMID Funds
1,002,442
(1,002,441)
Transfers Out to GASB 45
(7,974)
0
Operatinq Reserves
0
682,929
The remaining balance will be used for capital improvements to the District in the form of additional
maintenance including upgrades and unrecoverable knockdowns not covered by Southern California
Edison.
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ASSESSMENT DIAGRAMS
Assessment Diagrams showing the boundaries of the Streetlight Maintenance District as well as
the assessed parcels is provided on the following page.
The lines and dimensions of each lot or parcel within the Assessment District are those lines and
dimensions shown on the maps of the Assessor of the County of Los Angeles for the fiscal year
to which this Report applies. The Assessor's maps and records are incorporated by reference
herein and made part of this Report.
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1. OVERVIEW
A. BACKGROUND
In January of 2002, the City Council approved the Golden Valley Ranch Development.
Approval of this development included the construction of 498 single-family residential units,
approximately 610,930 square feet of commercial uses, a tum -key elementary school, a 2.3
net -acre trail head, a 1.6 -acre fire station pad, and the dedication of approximately 920 acres
of natural undeveloped open space.
In conjunction with the approval of this development, the City, the Owner (PacSun), and the
Golden Valley Ranch Task Force entered into a settlement agreement set forth in the
Judgment of the Superior Court of the State of California Case No. BC269070, filed July 29,
2002, in which, among other things, in exchange for approval of the residential development,
the Owner agreed to set aside open space within the development and be responsible for the
ongoing maintenance of such open space, and the City agreed to initiate formation
proceedings for a special assessment district for the ongoing maintenance of the open space.
B. EFFECTS OF PROPOSITION 218
On November 5 1996, the electorate approved Proposition 218, Right to Vote on Taxes Act,
which added Articles XI IIC and XII ID to the California Constitution. The Article XI IID affects all
assessments upon real property for a special benefit conferred on the property. Assessments
imposed under the Landscaping and Lighting Act of 1972 are these types of benefit
assessments.
The provisions of Proposition 218 can be summarized in four general areas:
1. Strengthens the general and special tax provisions of Propositions 13 and 62,
2. Extends the initiative process to all local taxes, assessments, fees and charges,
3. Adds substantive and procedural requirements to assessments, and
4. Adds substantive and procedural requirements to property -related fees and charges.
On November 25, 2003, the City Council considered adoption of resolutions to initiate
proceedings for and declare its intent to the formation of the District. At that time, PacSun, as
the sole owner of the Golden Valley Ranch Development, provided the City with a petition,
giving approval to the formation of the open space maintenance district.
Fiscal Year Open Space Maintenance District (Golden Valley Ranch) Engineer's Report
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IL PLANS AND SPECIFICATIONS
A. IMPROVEMENTS AUTHORIZED BY THE 1972 ACT
As applicable or may be applicable to this District, the 1972 Act defines improvements to
mean one or any combination of the following:
• The installation or planting of landscaping.
• The installation or construction of statuary, fountains, and other ornamental
structures and facilities.
• The installation or construction of public lighting 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 maintenance or servicing, or both, of any of the foregoing.
• The acquisition of any existing improvement otherwise authorized pursuant to this
section.
Incidental expenses associated with the improvements include, but are not limited to:
• The cost of preparation of the report, including plans, specifications, estimates,
diagram, and assessment,
• The costs of printing, advertising, and the publishing, posting and mailing of
notices,
• Compensation payable to the County for collection of assessments,
• Compensation of any engineer or attorney employed to render services,
• Any other expenses incidental to the construction, installation, or maintenance and
servicing of the improvements,
• Any expenses incidental to the issuance of bonds or notes pursuant to Section
22662.5.
• Costs associated with any elections held for the approval of a new or increased
assessment.
The 1972 Act defines "Maintain" or "maintenance" to mean 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, ortreating for disease or injury.
• The removal of trimmings, rubbish, debris, and other solid waste.
Fiscal Year Open Space Maintenance District (Golden Valley Ranch) Engineer's Report
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The cleaning, sandblasting, and painting of walls and other improvements to
remove or cover graffiti.
B. DESCRIPTION OF IMPROVEMENTS TO BE MAINTAINED AND SERVICED
The improvements proposed to be maintained and serviced are generally described as
the Conservation Easement area, as described in the Judgment of the Superior Court of
the State of California Case No. BC269070, fled July 29, 2002, which is the open space
area on Tentative Tract Map No. 52414 (Golden Valley Ranch).
Improvements include but are not limited to: trail maintenance and open space
management within the boundaries of said Maintenance District.
The District will fund costs in connection with the District maintenance and servicing
including, but not limited to, labor, electrical energy, water, materials, contracting services,
administration, and other expenses necessary for the satisfactory maintenance and
servicing of these improvements.
Maintenance means the furnishing of services and materials for the ordinary and usual
operation of natural open space land orreplacement of all orpart of any of the landscaping
or appurtenant improvements, the removal of rubbish, debris and other solid waste, the
cleaning and other improvements to remove or cover graffiti, and trail maintenance.
Servicing means the administration of all aspects of the maintenance and servicing of the
improvements.
Plans and specifications for the improvements, showing the general nature, location and
the extent of the improvements, are on file at the City where they are available for public
inspection and are by reference herein made a part of this report.
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111. ESTIMATE OF COSTS
The estimated costs for the operation, maintenance and servicing of the facilities, shown below,
are the estimated costs of maintenance if the facilities were fully maintained for Fiscal Year
2016/2017. The 1972 Ad provides that the total cost of the maintenance and services, together
with incidental expenses, may be financed from the assessment proceeds. The incidental
expenses may include engineering fees, legal fees, printing, mailing, postage, publishing, and all
other related costs identified with the district proceedings.
Maintenance & Servicing Costs
Natural Open Space Trails $39,000.00
Administration Costs 14,084.00
Capital Improvement
Trail Heads and Trails 0.00
Transfer Out to GASB 45 187.00
$53,271.00
Operating and Capital Reserve $170,434.00
Interest (positive) (0.00)
Prior Year (surplus) or deficit FY 15-16 (177,314.00)
6,880.00
Total Assessment $46,391.00
The 1972 Act requires that a special fund be set-up for the revenues and expenditures of the
District. Funds raised by assessment shall be used only for the purpose as stated herein. The
City may advance funds to the District, if needed, to ensure adequate cash flow, and will be
reimbursed for any such advances upon receipt of assessments. Any surplus or deficit remaining
on July 1 must be carried over to the next fiscal year
IV. METHOD OF APPORTIONMENT OF ASSESSMENT
A. GENERAL
Part 2 of Division 15 of the Streets and Highways Code, the Landscaping and Lighting Act
of 1972, permits the establishment of Maintenance Districts by cities for the purpose of
providing certain public improvements which include the construction, maintenance and
servicing of street lights, traffic signals and landscaping facilities.
Section 22573, Landscaping and Lighting Act of 1972 requires that maintenance
assessments be levied according to benefit rather than according to assessed value. This
section states:
"The net amount to be assessed upon lands within an Maintenance 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."
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The Act permits the designation of zones of benefit within any individual Maintenance
District if "by reason of variations in the nature, location, and extent of the improvements,
the various areas will receive different degrees of benefit from the improvements." (Sec.
22574). Thus, the 1972 Act requires the levy of a true "assessment' ratherthan a "special
tax."
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The costs of the proposed improvements have been identified and allocated to properties
within the District based on special benefit. The improvements to be provided by this
District and for which properties will be assessed have been identified as an essential
component and local amenity that provides a direct reflection and extension of the
properties within the District which the property owners and residents have expressed a
high level of support.
This District was formed to provide and establish landscape and lighting enhancement
that affects the presentation of the surrounding properties and developments and will
directly benefit the parcels to be assessed within the District. The assessments and
method of apportionment is based on the premise that the assessments will be used to
construct and install landscape improvements within the existing District as well as provide
for the annual maintenance of those improvements, and the assessment revenues
generated District will be used solely for such purposes.
In conjunction with the provisions of the 1972 Act, the California Constitution Article XI HID
addresses several key criteria for the levy of assessments, notably:
Article XI HID Section 2d defines District as follows:
"District means an area determined by an agency to contain all parcels which will receive
a special benefit from a proposed public improvement or property -related service,
Article XI HID Section 2i defines Special Benefit as follows:
'Special benefit' means a particular and distinct benefit over and above general benefits
conferred on real property located in the district or to the public at large. General
enhancement of property value does not constitute "special benefit."
Article XI HID Section 4a defines proportional special benefit assessments as follows:
"An agency which proposes to levy an assessment shall identify all parcels which will have
a special benefit conferred upon them and upon which an assessment will be imposed.
The proportionate special benefit derived by each identified parcel shall be determined in
relationship to the entirety of the capital cost of a public improvement, the maintenance
and operation expenses of a public improvement, or the cost of the property related
service being provided. No assessment shall be imposed on any parcel which exceeds
the reasonable cost of the proportional special benefit conferred on that parcel."
The method of apportionment (method of assessment) set forth in the Report is based on
the premise that each assessed property receives special benefits from the landscape
and lighting improvements in the District, and the assessment obligation for each parcel
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reflects that parcel's proportional special benefits as compared to other properties that
receive special benefits.
To identify and determine the proportional special benefit to each parcel within the District,
it is necessary to consider the entire scope of the improvements provided as well as the
properties that benefit from those improvements. The improvements and the associated
costs described in this Report, have been carefully reviewed and have been identified and
allocated based on a benefit rationale and calculations that proportionally allocate the net
cost of only those improvements determined to be of special benefit to properties within
the District. The various public improvements and the associated costs have been
identified as either "general benefit' (not assessed) or "special benefit'.
C. REASON FOR THE ASSESSMENT
The assessment is proposed to be levied to defray the costs of the maintenance and
servicing ofthe open space conservation area improvements, as previously defined herein
in Part A of this Report.
D. SPECIAL BENEFIT ANALYSIS
Parcels within the District will be assessed for the maintenance of those improvements
that provide a special benefit to the project. Article XIIID of the California Constitution
defines special benefit as:
"A particular and distinct benefit over and above general benefits conferred on real
property located in the district or to the public at large. General enhancement of property
value does not constitute 'special benefit'."
Per the Judgment of the Superior Court of the State of California Case No. BC269070,
fled July 29, 2002, the setting aside and on-going maintenance of natural open space
areas is a condition of developing the residential portion of Tentative Tract No. 52414
(Golden Valley Ranch).
Without the open space areas, residential development would not be allowed to occur
within the boundaries of the Tentative Tract, therefore, all real property proposed to be
developed for residential uses receive and are conferred a particular and distinct special
benefit from these open space areas and their maintenance. Non-residential properties
are not subject to this condition and therefore do not receive special benefit from the
improvements. The general benefits associated with these open space areas and their
maintenance are considered incidental, negligible and nonquantifable.
As stated above, only residential property receives special benefits for the on-going
maintenance of the designated open space within Tentative Tract No. 52414 (Golden
Valley Ranch). There are 142.05 net acres of land designated for residential development
within the tentative tract. The special benefit to each residential acre of land is the same:
the ability to develop. Therefore, the assessment is apportioned to the residential
development areas on a per acre basis.
$46,391.00 / 142.05 acres = $326.58 / acre
Fiscal Year Open Space Maintenance District (Golden Valley Ranch) Engineer's Report
20162017 Page 6
WILLDAN
Financial Services
The table below provides the projected assessment apportionment for the two types of
planned residential unit areas within the Golden Valley Ranch development and shows
the estimated maximum annual assessment rate per residential unit given the following
assumptions. These rates are based on the following development scheme:
129.89 acres currently designated for 404 single family residential (SFR) units,
12.16 acres currently designated for 95 single family condominium (CON) units
CPI Increase = 2.03
If the number of residential units differs from those projected above, the maximum
assessment rates per residential unit will also differ.
The maximum annual maintenance assessment rates will be increased each year by the
annual change in the Consumer Price Index (CPI) for All Urban Consumers, for the Los
Angeles, Riverside and Orange County areas.
The actual assessments levied in any fiscal year will be as approved by the City Council
and may not exceed the maximum assessment rate without receiving property owner
approval for the increase.
Fiscal Year Open Space Maintenance District (Golden Valley Ranch) Engineer's Report
2016/2017 Page 7
io/WILLDAN
Financial Services
V. ASSESSMENT ROLL
The total proposed assessment for Fiscal Year 2016/2017 and the amount of the total proposed
assessment apportioned to each lot or parcel within the District, as shown on the latest
assessment roll at the Los Angeles County Assessor's Office, are contained in the Assessment
Roll on file in the office of the City Clerk of the City of Santa Clarita, which is also made a part of
this Report.
This Assessment Roll includes the proposed residential development areas that make up
Tentative Tract Map No. 52414 (Golden Valley Ranch).
Fiscal Year Open Space Maintenance District (Golden Valley Ranch) Engineer's Report
2016/2017 Page 8
io/WILLDAN
Financial Services
VI. ASSESSMENT DIAGRAM
An Assessment Diagram for the Maintenance District is provided on the following page.
The lines and dimensions of each lot or parcel within the Maintenance District are those lines and
dimensions shown on the maps of the Assessor of the County of Los Angeles, for the year when
this Report was prepared, and are incorporated by reference herein and made part of this Report.
Fiscal Year Open Space Maintenance District (Golden Valley Ranch) Engineer's Report
2016/2017 Page 9
�%ILLDAN
Financial Services
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Fiscal Year Open Space Maintenance District (Golden Valley Ranch) Engineer's Report
2016/2017 Page 11
CITY OF SANTA CLARITA
TOURISM MARKETING DISTRICT
Annual Report
TOURISM MARKETING DISTRICT ("TMD") ADVISORY BOARD
Pursuantto the Parkingand Business ImprovementArea Lawof 1989 (Section 365oo et sec. of the Streets
and Highways Code of the State of California), the Advisory Board forth e Tourism M a rketing District
("TMD") which is appointed by the City Council of the City of Santa Clarita, annually reviews and makes
appropriate recommendations to the City Council by an Annual Report regarding the use of funds collected
through the TMD assessments. The Advisory Board consists of one (1) owner specified representative from
each of the participating hotels within the Hotel Tourism Marketing Benefit Zone, as well as two (2) City
representatives selected by the City Manager.
The following table lists the various businesses/entities currently represented on the Advisory Board:
Marketing
Jason
and Economic
23920 Valencia Blvd
N/A
Suite 100
Crawford
Development
Santa Clarita, CA 91355
Manager
Economic
23920 Valencia Blvd
Eva n
Development
N/A
Suite 100
Thomason
Associate
Santa Clarita, CA 91355
Excel Hotel Group
Karina
General
27413 Wayne Mills Place
10660 Scripps Ranch Blvd.
Winkler
Manager
Santa Clarita, CA 91355
Suite 100
San Diego, CA 92131
Excel Hotel Group
Julio
General
27513 Wayne Mills Place
10660 Scripps Ranch Blvd.
Ongpin
Manager
Santa Clarita, CA 91355
Suite 100
San Diego, CA 92131
General
28523 Westinghouse
Apple REIT Companies, Inc.
Noel Pavia
Place
814 East Main Street
Manager
Santa Clarita, CA 91355
Richmond, VA 23219
Interstate Hotels and
Ron
General
28508 Westinghouse
Resorts
Place
4501 North Fairfax Avenue,
Carter
Manager
Santa Clarita, CA 91355
Suite 500
Arlington, VA 22203
Eric
General
24500 Town Center Drive
Dimension Development
769 Highway 494
Ducat
Manager
Santa Clarita, CA 91355
Natchitoches, LA 71457
OVERVIEW
The formation of Santa Clarita Tourism Marketing District ("District") in May 2010 aligned with the goals
and efforts of the City's 21 -Point Business Plan for Progress.
The District was established and is levied pursuant to the Parking and Business Improvement Area Law of
1989, Part 6 of Division 18 of the California Streets and Highways Code (the "1989 Law") and the provisions
of the California Constitution Article XI 11 D ("Proposition 218"). Pursuant to the 1989 Law, a resolution of
intention to establish the District was approved on March 23, 201o, and a public hearing, which was duly
noticed, was held on May 11, 201o. Following the public hearing the City Council determined that majority
protest regarding the formation of the District and the proposed assessments did not exist (no protests
were submitted) and subsequently on May 25, 2010 the City Council adopted Ordinance No. 10-4
establishing the Tourism Marketing District ("TMD" or "District") and the Hotel Tourism Marketing Benefit
Zone therein ("Benefit Zone").
This report prepared on behalf of the Advisory Board, provides an overall description of the proposed
improvements and activities to be funded by the assessments, the estimated annual budget of expenses,
the method of assessment and estimated revenues for Fiscal Year 2o16/2017 (commencingJuly 1, 2o16 and
endingJune 30, 2017).
Hotel
Average Daily
Transient
Tourism
Occupancy %
Rate (ADR)
Occupancy Tax
Marketing
District
73.6
$109.55
$2.4 M
$452,988
76.5
$113.15
$2.6 M
$485,393
80.1
$121.27
$2.9 M
$546,619
84.7
$129.58
$3.6 M
$618,098
SUMMARY OF SERVICES & ACTIVITIES
The Tourism Marketing District funds various services and activities which confer special benefit to the businesses
within the Hotel Tourism Marketing Benefit Zone of the District. These services include, but are not limited to:
Promotion of City of Santa Clarita through financial support of key regional and national events that support
tourism;
Development and implementation of destination marketing strategy and promotion designed to increase
visitor attraction to City of Santa Clarita;
Development and undertaking of advertisement and public relations program focused on business and leisure
travel;
Support and funding of the Tourism Trolley Route program; and
Attendance at key meeting and consumer trade shows
Assessment fees are dedicated to securing visitors and room nights through a mix of marketing programs,
projects and activities, including: marketing promotion, advertising, public relations, visitor services, market
research, partnership marketing and special events promotion.
Programs and advertising opportunities that were implemented during fiscal year 2015/16 as a result of the
establishment of the TMD include:
Tourism advertising campaigns via digital and commercial spots working with partners in the greater Los
Angeles region, as well as Orange County, Greater Los Angeles, San Diego, Inland Empire, Bakersfield, Fresno,
Sacramento and San Francisco.
Summer Trolley program
Attending business development tradeshows, including California Society of Association Executives Seasonal
Spectacular, TEAMS Conference & Expo, and Religious Conference Management Association Emerge
Conference.
From amateur events to regional and national championships, Santa Clarita has become a premier sporting
destination. Sport Tourism is the fastest growing sector in the global travel industry and having recognized that,
the City of Santa Clarita now has established funding available to bring more sporting events to town. Events that
Santa Clarita has been able to pursue as a direct result of the established district include, but are not limited to:
Wings for Life World Run
Amgen Tour of California
Canyons Aquatic Club regional events
Cal South State Soccer Cups
Master's College Golf Collegiate Invitational
Golden State Athletic Conference Cross Country Championship
Los Angeles Volleyball Academy Foothill Invitational
Various youth baseball and softball tournaments
MARKETING & EVENT ATTRACTION
Advertising ($194,505): TMD dollars have successfully launched comprehensive multi -media advertising
campaigns, inclusive of print, TV commercial and radio spots, digital ad networks, and social media outlets also
targeting Hispanic target audience through social media and digital ads to attract visitors during the off season
(September thru April). Marketing efforts focused on existing feeder markets such as Orange County, Greater Los
Angeles, San Diego, Inland Empire, Riverside, Bakersfield, Fresno, Sacramento, San Francisco. TMD dollars allow
simultaneous efforts to market to different audiences: direct consumer/leisure travelers, corporate meeting and
conference planners, and sports tourism event producers. A marketing campaign results in successful branding,
measurable hotel room bookings, a substantial increase in year over yeartraffic to the Tourism welbsite, and
increased corporate meetings and events. The upward momentum of using TMD funds to market Santa Clarita as
a destination continues to prove successful.
A summaryof the 2015-16 marketing campaign is as follows:
22 million total impressions including:
11.4 million Ad Taxi Digital Network Impressions
3.5 Million Pandora Digital and Radio Impressions
1.5 million Time Warner Cable Impressions
2.8 million Adara Impressions (online)
— $98,393 in tracked revenue on a $2ok spend from Adara Media online network for a 5.9:1 R01 on overa I I bookings
377,932 Trip Advisor Impressions
Brand Awareness Campaign Message Focus:
Time Warner Cable: 1794 spots reached 736,992 households
San Diego/KATZ Radio: 430 spots reached 1.7 million listeners four week campaign running English and
Hispanic speaking radio spots
Pandora San Francisco: the digital ad buy came with a radio spot which garnered 1.2 million impressions
Calls to Action Digital Campaign Focus:
AdTaxi: Call to Action spots with mobile focus showed great results with a 1.15 CTR, over lo,000 people went
deeper into the site, and over 5,200 people searched the booking engine
Adara Media Digital Network: Call to Action spots focused toward mobile networks; Results included 685
trackable room nights booked.
Pandora SF: Above average click through rate Of .76%.
Social Media/SIEM UsingCalls to Action BannerADS and BrandingVideo Spots:
SEM Google Display Ads: both Hispanic and English speaking targets were very responsive with .3o, and .24
CTR respectively
YouTube Video Pre -Roll: both Hispanic and English speaking targets were very responsive to the videos
Facelbook: Facelbook ADS resonated with our audience bringing in a 4.6 CTR
MARKETING & EVENT ATTRACTION cont.
VisitSantaClarita.com web traffic
23.2% increase in web traffic to VisitSantaClarita.com (Sept 2015 - March 2o16 compared with same
period for previous year).
33,2o6 views of our dedicated landing page associated with the campaign during this time period
(118.5% increase YOY).
1,514 unique entries in the sweepstakes campaign
Event Attraction ($145,000): The City regularly hosts large scale events such as the Amgen Tour of
California and the Wings for Life World Run. These events bring a positive economic impact to the City,
and we have become known as a City that produces quality regional sporting and cultural events
ourselves and with outside agencies. The City also works regularly with youth sports agencies and local
facilities on growing existing annual events and developing potential new tournaments. Special events
held in 2015 brought in over 2,800 room nights to the Santa Clarita TMD Hotels.
Account
Codes
Account Title and Detail
FY 13-14
Actuals
FY 14-15
Actuals
FY15 -16
Exp. + Eric.
@ 12-31-15
FY 16-17
Beginning
Base Budget
FY 15-16
Requested
Base
Adjustment
FY 16-17
Proposed
Base Budget
PERSONNEL
1
11305
5002.001
P TTIME SALARIES
$ 1,265.00
$ 5,761.00
$ 5,572.00
$ 18,090.00
$ 18,090.00
1. PartTime Staf
$18,053
TOTAL PERSONNEL
$ 1,265.00
$ 5,761.00
$ 5,572.00
$ 18,090.00
$
$ 18,090.00
OPERATIONS
&MAINTENANCE
1
1
1
11305
5101.001
PUBLICATIONS AND SUBSCRIPTIONS
$ 1,370.00
$ �1007 00
$ -
$ 11435.00
$
$ 11435.00
1. Sports Business Journal Daily
$1,435
11305
5101.002
MEMBERSHIPS AND DUES
$ 1,300.00
$ 1,305.00
$ 195.00
$ 1,610.00
$
$ 1,610.00
1. NatonalAssociaton ofSports
ConTrissions (NASC)
2. California Socieity ofAssociaton
Execubves (CALSAE)
3. Hospitality Sales & Markefng
Internatonal (HSMAI)
4. Religious Conference Managers
Associaton (RCMA)
$795
$295
$325
$195
11305
.5101.004
PRINTING
$ 3,216.00
$ 3,627.00
$
$
$ 5,000.00
$ 5,00000
$
$ 5,000.00
1. Trolley Signage
2. Conference Materials[Team Santa
Clarita Materials
$2,000
$3,000
11305
5111.001
SPECIAL SUPPLIES
$ 586.00
$ 554.00
$
$
i35997.00
$ 1000.00
$ 100000
$
$ 11000.00
1. Trade Show Supplies
$1,000
11305
5161.001
CONTRACTUAL SERVICES
$ 29,401.00
$ 66,512.00
$
$ 606000.00
$
$ 60,000.00
1. Summer Trolley Program
$60,000
11305
5161.002
PROFESSIONAL SERVICES
$ 60,800.00
$ 71,293.00
$ 25,827.00
$ 145,000.00
$ 145,000.00
1. EventAtraction
$145,000
11305
5161.004
ADVERTISING
$ 139,525.00
$ 161,072.00
$ 190,114.00
$ 194,505.00
$ 194,505.00
1. Regional Advensing Campaign
$194,505
11305
5161.008
GRAPHIC DESIGN SERVICES
$ 957.00
$ -
$ -
$ 15,000.00
$
$ 15,000.00
1. Adverfising Campaign
2. Trolley Program
3. Team Santa Clarita Materials
$10,500
$3,000
$1,500
11305
5191.001
TRAVEL AND TRAINING
$ 6,206.00
$ 2,434.00
$ 1,605.00
$ 7,500.00
$
$ 7,500.00
1. RCMA Conference
2. HSMAl Conference
3. CALSAE Conference
$2,500
$2,500
$2,500
11305
5191.004
AUTO ALLOWANCE AND MILEAGE
$ 213.00
$ 343.00
$ -
$ 200.00
$
$ 200.00
1. Mileage reimbursementfor staf
$200
TOTAL OPERATIONS & MAINTENANCE
$243,574.00
$308,147.00
$253,738.00
$ 431,250.00
$
$431250 00
TOTAL BUDGET
$ 244,839.00
$ 313,908.00
$ 259,310.00
$449,340.00
$
DISTRICT BOUNDARIES
The boundaries of the Tourist Marketing District includes a I I rea I property within the
City of Santa Clarita; and within the TMD a Hotel Tourism Marketing Benefit Zone
was established by Ordinance No. 10-4 that included the five (5) hotel proper -ties
identified below:
For Fiscal Year 2o16/2017 it is anticipated that a new 42 room hotel will open at 24219
Railroad Avenue Santa Clarita, CA 91321. The five (5) hotel properties identified in the grid
above comprise the entire Benefit Zone for Fiscal Year 2o16/2017 until the Railroad Avenue
Hotel or any other hotel property opens and are proposed to be assessed in accordance
with the System of Assessment (Methodology) established by ordinance.
24500 Town Center Drive
2861-062-020
Santa Clarita, CA
27513 Wayne Mills Place
2861-071-008
Santa Clarita, CA
27413 Wayne Mills Place
2681-071-009
Santa Clarita, CA
28523 Westinghouse Place
2866-034-080
Santa Clarita, CA
28508 Westinghouse Place
2866-034-083
Santa Clarita, CA
For Fiscal Year 2o16/2017 it is anticipated that a new 42 room hotel will open at 24219
Railroad Avenue Santa Clarita, CA 91321. The five (5) hotel properties identified in the grid
above comprise the entire Benefit Zone for Fiscal Year 2o16/2017 until the Railroad Avenue
Hotel or any other hotel property opens and are proposed to be assessed in accordance
with the System of Assessment (Methodology) established by ordinance.
CALCULATION METHODOLOGY
In accordance with Ordinance No. 10-4 and Chapter 3.36 of Title 3 of the Santa Clarita
Municipal Code, only properties designated as hotels and included within the District's Hotel
Tourism Marketing Benefit Zone will be assessed.
"Hotel" shall mean any structure, or any portion of any structure, which is occupied or intended
or designed for occupancy by transients, including but not limited to for dwelling, lodging or
sleeping purposes, and includes any hotel, inn, tourist home or house, motel, studio hotel,
bachelor hotel, lodging house, rooming house, apartment house, dormitory, public or private
club, mobile home or house trailer at a fixed location, or other similar structure or portion
thereof, duplex, triplex, single family dwelling units except any private dwelling house or other
individually owned single-family dwelling rented only infrequently and incidental to normal
occupancy or any timeshare as set out in Revenue and Taxation Code Section 7280; provided,
that the burden of establishing that the facility is not a hotel shall be on the owner or operator
thereof.
The proposed system of assessment for the District is designed to generate revenue from hotels
in the City to provide a method of funding public programs and activities that will promote the
City and hotels as a tourist destination. The City's hotels comprise the Hotel Tourism Marketing
Benefit Zone and are the only business proposed to be assessed. The 2015/2016 fiscal year
annual assessments to be levied against hotels within the Benefit Zone are based on the
benefits they derive from the program of activities. Businesses located outside the Benefit Zone
(i.e., all non -hotel businesses) will not be assessed as they derive only, at most, an indirect
benefit from the program of activities.
In accordance with Ordinance No. 10-4, in addition to any assessments, fees, charges or taxes
imposed otherwise in the City, the City Council proposes to levy assessments for fiscal year
2016/2017 against businesses in the Benefit Zone for the purpose of funding the programs,
activities and services that will promote the City and hotels as a tourist destination. Each
business in the Benefit Zone shall pay an assessment of 2% of total room rents charged and
received from transient hotel guests who do not make the hotel their principal place of
residence.
These assessments shall be due and payable and shall be paid at the same time and in the same
manner that the transient occupancy tax is due and payable and shall be subject to the same
penalties and interest for nonpayment. All properties included in the Benefit Zone for fiscal year
2016/2017 will be assessed two (2%) percent of the total room rents charged and received
from transient hotel guests.
Any newly established hotels shall commence immediately upon the first day of operation and
following the public hearing conducted for inclusion into the District.
EmbassySuites
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