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HomeMy WebLinkAbout2008-03-11 - AGENDA REPORTS - LMD PROCEEDINGS (2)PUBLIC HEARING DATE: SUBJECT: DEPARTMENT: Agenda Item: J CITY OF SANTA CLARITA AGENDA REPORT City Manager Approval: Item to be presented by: March 11, 2008 Darren Hernandez LANDSCAPE MAINTENANCE DISTRICT PROCEEDINGS Administrative Services RECOMMENDED ACTION City Council: Conduct a public hearing regarding the proposed annexations into, detachments from, creation of new zones, and assessment rate adjustments for Landscape Maintenance Districts Numbers 1, A2, T-1 and various zones. 2. Direct the assessment engineer to revise the Engineer's Report to include clarification language regarding the continued Landscape Maintenance District maintenance of all T-1 Areawide improvements, including parkways and sidepanels, and to include language to clarify the analysis of special and general benefit to indicate there is no quantifiable general benefit. BACKGROUND On January 8, 2008, City Council set a public hearing for the March 11, 2008 Council meeting and adopted Resolutions 08-07 and 08-08. Respectively, these resolutions initiated proceedings, approved the Engineer's Report, and declared the Council's intention to order annexations into, detachments from, creation of new zones, and assessment rate adjustments in Landscape Maintenance District Nos. 1, A2, and T1. 11 On March 3, 2008, staff held a meeting with Valencia area homeowner association board members and on March 5, 2008, attended a Bridgeport HOA meeting. The meetings had three objectives: 1) discuss the purpose of proceedings, 2) clarify mis-information which had been circulated to ensure they are aware all LMD improvements would continue to be maintained, and 3) receive feedback and input on the Engineer's Report. Based on the successful outcomes of these meetings, the HOA board members requested staff_ recommend to the City Council the Engineer's Report include language that explicitly states all T-1 Areawide improvements will continue to be maintained by the Landscape Maintenance District and to clarify in the report there is no quantifiable general benefit. The final Engineer's Report containing these modifications and clarifications will be recommened for approval at the March 25, 2008 City Council meeting, if the majority of property owners approve these proceedings. The ballots will be counted on March 12, and results will be available soon thereafter. On January 25, 2005, assessment ballots were mailed and provided to property owners at least 45 days' notice of the public hearing and directions to return their assessment ballots to the City Clerk by this date. The purpose of these proceedings is to provide property owners the option to modify and/or create Landscape Maintenance District zones as follows: Detach parcels from LMD No. Tl, Areawide Zone, and from LMD No. T1, Zone T-9 (Tourney Road Corporate Center), and create and annex parcels into the following proposed new zones: LMD No. 1, Zone 2008-1; LMD No. 1, Zone 18 (Town Center/Tourney Road); and LMD No. 1, Zone 19 (Bridgeport/Bouquet). Created by Los Angeles County prior to the incorporation of the City, current LMD No. T1, Areawide Zone covers the western (Valencia) portion of the City. This zone primarily finances the improvement and maintenance of landscaped medians, parkways, and- other landscape improvements located on major corridors such as McBean Parkway, Valencia Boulevard, Magic Mountain Parkway, and Newhall Ranch Road. In addition, this zone finances various local landscape maintenance improvements for the Bridgeport neighborhood (with the parcels within Bridgeport paying a higher assessment rate), the Avignon neighborhood (with the parcels within Avignon paying a higher assessment rate), and the Town Center area. State Law requires that assessments be apportioned based on the proportionate share of special benefit conferred on each parcel identified as receiving special benefit from the improvements and services being provided. However, the assessments for this LMD zone are apportioned primarily on a per -parcel basis, with a single-family home, condominiums,and large shopping center all paying the same annual assessment of $61.40 per parcel. This is the case even though these different land uses and parcel sizes (in the case of non-residential parcels) receive different levels of special benefit. The result is condominiums and single-family homes are being over -assessed and non-residential developed parcels under -assessed. This is a legacy issue dating back to the creation of this zone by Los Angeles County prior to City incorporation, and it is problematic. In addition, because medians on major thoroughfares confer a different level of special benefit over a larger area than more "local" improvements such as parkways, side panels, entry monuments, paseos, etc, which confer special benefit over a smaller area, major thoroughfare medians and local improvements should not be funded through the same zone. As mentioned previously in this report, current LMD No. T1, Areawide Zone, was created by Los Angeles County. to finance medians on major thoroughfares and, in some areas, local improvements; this is problematic. Prior to the City assuming responsibility for the administration of the Landscape Maintenance Districts from Los Angeles County, LMD No. T1, Zone T9, was created to provide landscape maintenance services in the Tourney Road Corporate Center. The assessment methodology for this zone is conducted on a per -parcel basis rather than a methodology that equitably apportions costs commensurate with the special benefit being conferred on each parcel; this is problematic. To address the issues stated above, staff recommends: creation of LMD No. 1, Zone 2008-1 for the financing of landscape improvements on major corridors; creation of a new LMD No. 1, Zone 18 (Town Center/Tourney Road) to finance landscape improvements for the Town Center/Tourney Road area; and creation of a new LMD No. 1, Zone 19 (Bridgeport/Bouquet) to finance of landscape improvements for the Bridgeport/Bouquet area. With this reorganization, parcels would be detached from zones, and the zones dissolved, so that no parcel is paying for the same service twice. The assessment methodology for these areas would apportion the assessments based on the special benefit conferred: on each parcel, as required by State Law. LMD No. 1, Zone 2008-1, if created, would decrease assessments for residential parcels in the current LMD No. T1, Areawide Zone (primarily the Valencia residential area) as follows: for single-family residences a decrease from $61.40 annually to $55.25 annually (a decrease of 10%) and for condos a decrease from $61.40 annually to $41.44 annually (a decrease of 32.5%). These decreases are due to the recommended change from a per -parcel assessment to an equitable methodology where parcels are assessed based on the special benefit they receive. As the median corridor beautification standards established in the Valencia area are applied to medians located in other areas of the City, parcels will go through the assessment ballot process to be annexed into the Major Thoroughfare Median Zone. As part of this action, benefiting commercial and industrial parcels located on major thoroughfares targeted for immediate improvement are proposed to be annexed. LMD No. 1, Zone 18 (Town Center/Tourney Road), if created, would remove the local improvements provided in this area by the current LMD No. T1, Areawide Zone and place them in a new local zone encompassing the Town Center and Tourney Road areas. The methodology for this new zone would equitably assess parcels based on the special benefit they receive. As the landscape maintenance services provided in the Tourney Road Corporate Center (Zone T9) area are consistent with those services provided in the Town Center area (service which, are funded by the Areawide Zone) detaching these parcels from LMD No. T1, zones T9 and Areawide, respectively, and annexation of these parcels into the proposed new LMD No. 1, Zone 18 would consolidate all similarly benefiting parcels in this area into one LMD zone. LMD No. 1, Zone 19 (Bridgeport/Bouquet), if created, would remove the local improvements provided in this area through the current LMD No. T1, Areawide Zone and place them in a new local zone encompassing the Bridgeport and lower Bouquet area. The methodology for this new zone would equitably assess parcels based on the special benefit they receive. Detaching these parcels from LMD No. T1, Areawide Zone, and annexing these parcels into the proposed new LMD No. 1, Zone 18 would consolidate all similarly benefiting parcels in this area in one LMD zone. Modify the maximum assessment rates for LMD No. 1, Zone 15 (River Village). Subsequent to the landscape maintenance district assessment rate for River Village being set in 2006, the landscape areas proposed to be maintained are proposed to be increased. Therefore, the maximum assessment rate for this zone needs to be adjusted. Dissolve and detach parcels from LMD No. TI, Zone TIO (Avenue Stanford), and annex parcels into LMD No. 1, Zone 16 (Valencia Industrial Center area). Prior to the City assuming responsibility for the administration of Landscape Maintenance Districts, LMD No. T1, Zone T10, was created to provide landscape services in portions of the Valencia Industrial Center, in particular along Avenue Stanford north of Rye Canyon Road. LMD No. 1, Zone 16, was created to finance landscape maintenance services in the Valencia Industrial Center. Most parcels in Zone T10 are redundantly layered with Zone 16, with some parcels of T10 located just outside of Zone 16. Dissolution of LMD No. Tl, Zone T10 and the annexation of parcels in the Valencia Industrial Center/Rye Canyon Business Park into Zone 16 would eliminate the layered redundancy and consolidate all benefiting parcels in one LMD zone. Detach LMD No. I Zone 1, Annexation IE, and create and annex parcels into the proposed new LMD No. 1, Zone 20 (Golden Valley Ranch -Commercial). Subsequent to the LMD assessment rate for Golden Valley Ranch - Commercial being set in 2005, the landscape areas to be maintained are proposed to be increased. Therefore, the maximum assessment rate for this zone needs to be adjusted. At present, these parcels are part of LMD No. 1, Zone 1, which includes the residential portion of Golden Valley Ranch. Detaching the commercial parcels from LMD No. 1, Zone 1 Annexation IE and annexing the parcels into the proposed new LMD No. 1, Zone 20, would provide for a separate zone for the local benefits received by the commercial area of Golden Valley Ranch. Summary If approved by a majority of the weighted assessment ballots returned, the recommendations detailed above would become effective in the current fiscal year and implemented in the 2008-09 Fiscal Year. For single-family and condominium homeowners, annual assessment rates will be reduced 10% and 32.5% respectively. Commercial property owners' landscape assessments will reflect the benefit received from median landscaping (rates vary), and problematic legacy issues will be resolved. ALTERNATIVE ACTIONS Others action as directed by the City Council. FISCAL IMPACT There will be no impact to the General Fund. It is anticipated there will be sufficient revenue to meet anticipated expenses. CITY OF SANTA CLARITA NOTICE OF PUBLIC HEARING NOTICE IS HEREBY GIVEN: A Public Hearing will be held before the City Council of the City of Santa Clarita in the City Hall Council Chambers, 23920 Valencia Boulevard, 1 st floor, Santa Clarita, California, on the 11 th day of March, at or after 6:00 p.m., to consider the annexations into, detachments from, creation of new zones, and assessment rate adjustments to City of Santa Clarita Landscape Maintenance District (LMD) Numbers 1, A2 and T-1. The LMD assessment is for landscape maintenance as describe in the Act identified below. The City Council, pursuant to the Landscaping and Lighting Act of 1972, being a division of the Streets and Highways Code of the State of California and Article XIII D of the California Constitution (Proposition 218), the Proposition 218 Omnibus Implementation Act will take appropriate consideration and action. Proponents, opponents, and any interested persons may appear and be heard on this matter at that time. Further information may be obtained by contacting the Administrative Services Department, 23920 Valencia Boulevard, Suite 260, Santa Clarita, CA 91355; (661) 286-4005, Dennis Luppens, Special District Administrator. If you wish to challenge this action in court, you may be limited to raising only those issues you or someone else raised ;at the public hearing described in this notice, or in written correspondence delivered to the City Council, at, or prior to, the public hearing. Dated: January 14, 2008 Sharon L. Dawson, CMC City Clerk Publish Date: January 16, 2008 Engineer's Report For Annexations into, Detachments from, Creation of New Zones, and Assessment Rate Adjustments City of Santa Clarita Landscape Maintenance District Nos. 1,A2 and T-1 (Various _Zones)_ Fiscal Year 2007-08 Submitted To: Santa Clarita, California Prepared By: Harris & Associates. January 2, 2008 City of Santa Clarita — Annexations into, Detachments from, Creation of New Zones, and January 2, 2008 Assessment Rate Adjustments for Landscape Maintenance District Nos. 1, A2 and T1 (Various Zones) Engineer's Report, FY 2007-08 Page i TABLE OF CONTENTS Certificates .............: .............................................1 Report............................................................................................................................2 Part A - Plans and Specifications............................................................................3 Part B - Estimate of Cost.........................................................................................4 Part C - Method of Apportionment of Assessment.................................................7 Part D - Assessment Roll.......................................................................................16 Part E - Assessment Diagram.........................'.......................................................17 Exhibit A — List of Parcels Being Detached from Various Landscape Maintenance Districts City of Santa Clarita — Annexations into, Detachments from, Creation of New Zones, and January 2, 2008 Assessment Rate Adjustments for Landscape Maintenance District Nos. 1, A2 and T1 (Various Zones) Engineer's Report, FY 2007-08 Page 1 CITY OF SANTA CLARITA ANNEXATIONS INTO, DETACHMENTS FROM, CREATION OF NEW ZONES, AND ASSESSMENT RATE ADJUSTMENTS LANDSCAPE MAINTENANCE DISTRICT NOS. 1, A2 AND T1 (VARIOUS ZONES) ENGINEER'S REPORT CERTIFICATES The undersigned acting on behalf of Harris & Associates, respectfully submits the enclosed Engineer's Report as directed by City Council pursuant to the provisions of Section 4 of Article XIIID of the California Constitution, and provisions of the Landscaping and Lighting Act of 1972, Section 22500 et seq. of the California Streets and Highways Code. The undersigned certifies that she is a Professional Engineer, registered in the State of California. jOFESS/0N\ ��O OPN E. 0 q<� h4' � 0+ Z� � 2 UJ m N0. 41965 o *\EXP. 3/31/08 /* J]qT�OI CA Dated: � OF' A�-�FO Dated: January 2, 2008 BY: Joan E. Cox R.C.E. No. 41965 I HEREBY CERTIFY that the enclosed Engineer's Report, together with Assessment Roll and Assessment Diagram thereto attached, was filed with me on the day of 52008. Sharon L. Dawson, City Clerk City of Santa Clarita Los Angeles County, California an I HEREBY CERTIFY that the enclosed Engineer's Report, together with Assessment Roll and Assessment Diagram thereto attached, was approved and confirmed by the City Council of the City of Santa Clarita, California, on the day of 2008. Sharon L. Dawson, City Clerk City of Santa Clarita Los Angeles County, California Usanta clarita\LDMD Group Annex2\Reports\westside LMD annex rpt 2janKdoc City of Santa Clarita — Annexations into, Detachments from, Creation of New Zones, and January 2, 2008 Assessment Rate Adjustments for Landscape Maintenance District Nos. 1, A2 and T1 (Various Zones) Engineer's Report, FY 2007-08 Page 2 FISCAL YEAR 2007-08 ENGINEER'S REPORT PREPARED PURSUANT TO THE PROVISIONS OF THE LANDSCAPING AND LIGHTING ACT OF 1972 SECTION 22500 THROUGH 22679 OF THE CALIFORNIA STREETS AND HIGHWAYS CODE, ARTICLE XIIID OF THE CALIFORNIA CONSTITUTION, AND THE PROPOSITION 218 OMNIBUS IMPLEMENTATION ACT (GOVERNMENT. CODE SECTION 53750 ET SEQ.) Pursuant to Part 2 of Division 15 of the Streets and Highways Code of the State of California, Article XIIID of the California Constitution (Proposition 218), the Proposition 218 Omnibus Implementation Act and in accordance with the Resolution of Initiation, adopted by the City Council of the City of Santa Clarita, State of California, in connection with the proceedings for: ANNEXATIONS INTO, DETACHMENTS FROM, CREATION OF NEW ZONES, AND ASSESSMENT RATE ADJUSTMENTS LANDSCAPE MAINTENANCE DISTRICT NOS. 1, A2 AND T1 (VARIOUS ZONES) hereinafter referred to as the "Maintenance District" or "District", I, Joan E. Cox, P.E., the authorized representative of Harris & Associates, the duly appointed ASSESSMENT ENGINEER, submit herewith the "Report" consisting of five (5) parts as follows: PART A — PLANS AND SPECIFICATIONS Contains a description of the improvements that are to be maintained or serviced by the District. PART B — ESTIMATE OF COST Identifies the estimated cost of the services or maintenance to be provided by the District, including incidental costs and expenses in connection therewith. PART C — METHOD OF APPORTIONMENT Describes the basis on which the costs have been apportioned to each parcel of land within the Maintenance District, in proportion to the estimated benefits to be received by such lots and parcels. PART D — ASSESSMENT ROLL Identifies the maximum assessment to be levied on each benefited lot or parcel of land within the Maintenance District. PART E — ASSESSMENT DIAGRAM Contains a Diagram of the Maintenance District Boundaries showing the exterior boundaries of the Maintenance District, the boundaries of any zones within the Maintenance District and the lines and dimensions of each lot or parcel of land within the Maintenance District. RAsanta clarita\LDMD Group Annex2\Reports4estside LMD annex rpt 2janKdoc City of Santa Clarita - Annexations into, Detachments from, Creation of New Zones, and January 2, 2008 Assessment Rate Adjustments for Landscape Maintenance District Nos. 1, A2 and T1 (Various Zones) Engineer's Report, FY 2007-08 Page 3 PART A PLANS AND SPECIFICATIONS DESCRIPTION OF IMPROVEMENTS TO BE MAINTAINED AND SERVICED The improvements proposed to be installed, maintained and serviced are generally described as improvements within public rights-of-way and dedicated landscape easements within various tracts and on individual parcels located throughout the City including, but not limited to: landscaping, planting, shrubbery, trees, irrigation systems, hardscapes and fixtures; statuary, fountains and other ornamental structures and facilities; public lighting facilities; 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, clearing, removal of debris, the installation or construction of curbs, gutters, walls, sidewalks, or paving, or water, irrigation, drainage, or electrical facilities; and, park or recreational improvements, including, but not limited to, playground equipment, play courts, public restrooms, and paseos/trails. The District will fund costs in connection with the 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 maintenance, operation and servicing of the ornamental structures, landscaping and appurtenant facilities, including repair, removal or replacement of all or part of any of the ornamental structures, landscaping or appurtenant facilities; providing for the life, growth, health and beauty of the landscaping, including cultivation, irrigation, trimming, spraying, fertilizing, and treating for disease or injury; the removal of trimmings, rubbish, debris, other solid waste; and pest control; the cleaning, sandblasting, and painting of walls and other improvements to remove or cover graffiti. Servicing means the furnishing of electricity for the operation of any appurtenant facilities, and water for the irrigation and control of the landscaping and the maintenance of any of the ornamental structures, landscaping and appurtenant facilities. The plans and specifications for the improvements are voluminous and are not bound in this Report but by this reference are incorporated and made part of the Report. The plans and specifications are on file at the City. Usanta clarita\LDMD Group Annex2\Reports4estside LMD annex rpt 2jan08.doc City of Santa Clarita - Annexations into, Detachments from, Creation of New Zones, and January 2, 2008 Assessment Rate Adjustments for Landscape Maintenance District Nos. 1, A2 and T1 (Various Zones) Engineer's Report, FY 2007-08 Page 4 PART B ESTIMATE OF COST The estimated maximum 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 2007-08. The 1972 Act 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. 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. FY 2007-08 Maximum Budget District No. 1, Zone 2008-1 (Major Thoroughfare Medians) Major Thoroughfare Median Maintenance (Citywide) $4,642,108 Administration Costs $12,000 $4,654,108 Operating Reserve $665,500 Replacement Reserve $2,104,961 Prior Year (surplus) or deficit ($2,034,803) $5,389,766 Less Ad Valorem T1 Revenue ($585,515) Total Revenue Required: $4,804,251 City Contribution - allowance for parcels not yet included $2,564,872 Total to Assessment: $2,239,379 FY 2007-08 Maximum, Budget District No. 1, Zone 15 (River Village) Parkways $205,879 Irrigated Slopes $1'35,902 Open Space $109,519 $451,300 Operating Reserve $250,000 Replacement Reserve $45,000 Prior Year (surplus) or deficit $0 Total to Assessment $746,300, R:\santa clarita\LDMD Group Annex2\Reports4estside LMD annex rpt 2janWdoc City of Santa Clarita - Annexations into, Detachments from, Creation of New Zones, and January 2, 2008 Assessment Rate Adjustments for Landscape Maintenance District Nos. 1, A2 and T1 (Various Zones) Engineer's Report, FY 2007-08 Page 5 District No. 1, Zone 16 (Valencia Industrial Center) Parkways / Side Panels Street Trees Local Street Medians Monuments Bus Stop Amenities Paseos/Trails $159,750 $89,100 $79,007 $8,000 $15,000 $0 $350,857 Operating Reserve $35,100 Replacement Reserve $35,100 Prior Year (surplus) or deficit ($219,467) Revenues from existing Zone 16 parcels (coming) ($108,311) $93,279 Total to Assessment $93,279 District No. 1, Zone 18 (Town Center/ Tourney Road) Parkways / Side Panels Street Trees Local Medians Monuments Bus Stop Amenities Paseos/Trails FY 2007-08 Maximum Budget $276,923 $43,269 $5,531 $4,000 $39,936 $260,586 $630,245 Operating Reserve $72,428 Replacement Reserve $72,428 Prior Year (surplus) or deficit ($32,550) Total to Assessment $742,551 District No. 1, Zone 19 (Bridgeport / Bouquet) Parkways / Side Panels Street Trees Local Medians Monuments Bus Stop Amenities Paseos/Trails FY 2007-08 Maximum Budget $30,303 $21,017 $8,297 $630 $5,990 $0 $66,237 Operating Reserve $6,600 �- Replacement Reserve $6,600 Prior Year (surplus) or deficit $0 Total to Assessment $79,437 Usanta clarita\LDMD Group Annex2\Reports\westside LMD annex rpt 2jan08.doc City of Santa Clarita - Annexations into, Detachments from, Creation of New Zones, and January 2, 2008 Assessment Rate Adjustments for Landscape Maintenance District Nos. 1, A2 and T1 (Various Zones) Engineer's Report, FY 2007-08 Page 6 District No' 1, Zone 20 (Golden Valley Ranch - Commercial) Local Street Medians Parkways - Irrigated Slopes FY 2007-08 Maximum Budget $19,005 $75,255 $779,770 $874,030 Operating Reserve $10,000 Replacement Reserve $9,426 Prior Year (surplus) or deficit $0 Total to Assessment $893,456 Usanta clarita\LDMD Group Annex2\Reports\westside LMD annex rpt 2jan08.doc City of Santa Clarita — Annexations into, Detachments from, Creation of New Zones, and January 2, 2008 Assessment Rate Adjustments for Landscape Maintenance District Nos. 1, A2 and T1 (Various Zones) Engineer's Report, FY 2007.08 Page 7 PART C METHOD OF APPORTIONMENT OF ASSESSMENT 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 a 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." 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" rather than a "special tax." In addition, Proposition 218 requires that a parcel's assessment may not exceed the reasonable cost of the proportional special benefit conferred on that parcel. Proposition 218 provides that only special benefits are assessable and the City must separate the general benefits from the special benefits. REASON FOR THE ASSESSMENT The assessment is proposed to be levied to defray the costs of the installation, maintenance and servicing of improvements, as previously defined herein in Part A of this Report. SPECIAL BENEFIT ANALYSIS Street Landscaping Trees, landscaping, hardscaping and appurtenant facilities, if well maintained, provide beautification, shade and enhancement of the desirability of the surroundings, and therefore increase property value. In Parkways and Land Values, written by John Nolan and Henry V. Hubbard in 1937, it is stated: "... there is no lack of opinion, based on general principals and experience and common sense, that parkways do in fact add value to property, even though the amount cannot be determined exactly.... Indeed, in most cases where public money has been spent for parkways the assumption has been definitely made that the proposed parkway will show a provable financial profit to the City. It has been believed that the establishment of parkways causes a rise in real estate values throughout the City, or in parts of the City,..." It should be noted that the definition of "parkways" above may include the roadway as well as the landscaping along side the roadway. Landscaped Medians in the Major Thoroughfares. The landscape improvements in the medians along the major thoroughfares provide positive enhancement of the City and therefore increase RAsanta clarita\LDMD Group Annex2\Reports4estside LMD annex rpt 2jan08.doc City of Santa Clarita - Annexations into, Detachments from, Creation of New Zones, and January 2, 2008 Assessment Rate Adjustments for Landscape Maintenance District Nos. 1, A2 and T1 (Various Zones) Engineer's Report, FY 2007-08 Page 8 property desirability and property values. These major thoroughfares are the entryways into the City and as such provide beautification to the entire City; therefore, all parcels within the City receive a special benefit from the landscaped medians in the major thoroughfares. Landscaping in the medians along the major thoroughfares provides only incidental benefits to motorists traveling to, from or through the City. Trails and Greenbelts. Landscaping along recreational trails and greenbelts, if well maintained, provide beautification and enhancement of the desirability of the surroundings, and therefore increase property value. In "Greenways for America" by Charles E. Little, it is stated: "... [real estate] agents routinely advertise properties as being on or near the trail.... property near but not immediately adjacent to the Burke -Gilman Trail is significantly easier to sell and, according to real estate agents, sells for an average of 6 percent more as a result of its proximity to the trail. Property immediately adjacent to the trail, however, is only slightly easier to sell .... trails are an amenity that helps sell homes, increase property values and improve the quality of life." Additionally, the National Recreation and Park Association, in June 1985, stated: "The recreation value is realized as a rise in the value of land and other property in or near the recreation area, and is of public interest to the taxpayers, who have a stake in a maximum of total assessed values." Operation and maintenance of the trails and greenways within the City provides a benefit to those properties within the community surrounding the improvements. SPECIAL BENEFIT APPORTIONMENT Eauivalent Dwellima Units In order to allocate benefit fairly between the parcels, an Equivalent Dwelling Unit (EDU) methodology is proposed which equates different types of land uses to a single-family residential parcel, thereby allowing a uniform method of assessment. The EDU method uses the single-family home as the basic unit of apportionment. A single family home equals one Equivalent Dwelling Unit (EDU). Every other land use is converted to EDU's as described below. All properties in the District will be assigned dwelling units and land use classifications per the County Assessor's roll. (Inaccuracies in the County data will be reviewed on a case by case basis as they are brought to the City's attention.) A methodology has been developed to calculate the EDU's for other residential land uses and for non-residential parcels. Every land use is converted to EDU's: parcels containing apartments are converted to EDU's based on the number of dwelling units on each parcel of land; non-residential parcels are converted based on the lot size of each parcel of land. This methodology is summarized in the table below: Usanta clarita\LDMD Group Annex2\Reports4estside LMD annex rpt 2jan08.doc City of Santa Clarita - Annexations into, Detachments from, Creation of New Zones, and January 2, 2008 Assessment Rate Adjustments for Landscape Maintenance District Nos. 1, A2 and T1 (Various Zones) Engineer's Report, FY 2007-08 Page 9 Assessed EDU _ Equivalent Dwelling Land Use Unit x Factor Unit Rate (EDU) Residential Single family home 1 dwelling x 1 = 1.00 EDU /dwelling Single family vacant (subdivided) 1 parcel x 0.25 = 0.25 EDU / parcel Condominium 1 dwelling x 0.75 = 0.75 EDU /dwelling Multi -Family Res. 1 dwelling x 0.75 = 0.75 EDU /dwelling Mobile Home Parks 1 space x 0.5 = 0.50 EDU /space Developed Non -Residential includes: commercial, industrial, church, and institutional uses Other includes: vacant, parks, golf courses, public schools (K-12) and cemeteries Exempt Residential 1 acre x 6.00 = 6.00 EDU / acre 1 acre x 1.5 = 1.50 EDU /acre 0 = 0:00 EDU / acre Single Family Residences (SFR). A single family home equals 1 EDU. Multi -family Residences (Apartments and Condominiums) and Mobile Homes. Multi- family residential parcels and mobile home park equivalencies are determined by multiplying the number of dwelling units on each parcel by 0.75 and 0.5, respectively, due to the relative population density of these types of dwelling units and reduced unit size compared to the typical density and size of a SFR. Studies have consistently shown that the average apartment unit impacts infrastructure approximately 75% as much as a single-family residence, and the average mobile home unit impacts infrastructure approximately 50%. (Sources: Institute of Transportation Engineers Informational Report Trip Generation, Fifth Edition, 1991; Metcalf and Eddy, Wastewater Engineering Treatment, Disposal, Reuse, Third Edition, 1991). Trip generation and wastewater usage are a function of population density. Based on this, it is concluded that other infrastructure will be similarly impacted at a reduced level. The smaller average unit size of multiple -residential and mobile homes result in a lesser enhancement per unit to property values. The EDU's assigned to a multi -residential or a mobile home parcel are calculated based on the number of dwelling units and the appropriate EDU factor. For example, the EDU factor for multi -residential (0.75) is multiplied by the number of dwelling units on the parcel to determine the total EDU's for the multiple residential parcel. Similarly, the total EDU's for a mobile home parcel are calculated by multiplying the EDU factor (0.5) by the number of mobile home units on the parcel. Developed Non -Residential Developed non-residential properties are defined as improved commercial, industrial and institutional properties (such as churches and schools). In converting these properties to EDU's, the size of the parcels are compared to the median size of a single-family residential lot, which is 0.17 acres. This equals approximately 6 SFR lots per acre of land. Therefore', developed non- Usanta clarita\LDMD Group Annex2\Reports\westside LMD annex rpt 2jan08.doc City of Santa Clarita — Annexations into, Detachments from, Creation of New Zones, and January 2, 2008 Assessment Rate Adjustments for Landscape Maintenance District Nos. 1, A2 and T1 (Various Zones) Engineer's Report, FY 2007-08 Page 10 residential parcels are assigned EDU's at a rate of 6 EDU's per acre. The area of non-residential condominium parcels is calculated based on the individual area of the condo plus an equal share of the common area associated with the condominium project. Other Vacant property consists of parcels with few or no improved structures. These properties have virtually no impacts on infrastructure to make a comparison to developed property; however, based on the Los Angeles County Assessor's data, the average land value of a SFR property is between 45% and 50% of the total value. Splitting the difference between value and impacts, vacant properties are assigned EDU's at the rate of 25 percent of improved property. A vacant parcel, designated exclusively for a single-family residential unit by a recorded Tract Map or Parcel Map, will be assigned 0.25 EDUs per lot. Other vacant parcels, including those properties designated for agricultural, park, golf course and cemetery uses, are assessed based upon the acreage of the parcel. All of these parcels will be assigned EDU's at the rate of 25% of the developed non-residential properties, or 1.5 EDU's per acre. In addition, parks are considered as vacant, as are public schools (K-12) and golf courses (both of which are considered as parks in the City's planning documents) and cemeteries, which are largely park -like. Because of the large open -space aspects of these properties, they are considered to be more like vacant land and therefore are not considered to benefit as much as more fully developed properties from the additional aesthetic enhancements provided by the improvements being maintained. Exempt Exempted from the assessment are the areas of streets, avenues, lanes, roads; drives, courts, alleys, and public easements, rights -of -ways, and parkways. Also exempted from assessment are utility rights-of-way used exclusively for utility transmission, common areas (such as in condominium complexes), land dedicated as open space, landlocked parcels and small parcels vacated by the City as these parcels have little or no value and therefore do not benefit from the improvements. BENEFIT ZONES District No. 1, Zone 2008-1 (Major Thoroughfare Medians) The maintenance of landscaping in medians within the major thoroughfares of the City provides special and direct benefit to all parcels in the City. The associated costs of these benefits, including city administration costs, are spread to all parcels within these areas based on Equivalent Dwelling Units (EDU's), as follows: RAsanta clarita\LDMD Group Annex2\Reports4estside LMD annex rpt 2jan08.doc City of Santa Clarita — Annexations into, Detachments from, Creation of New Zones, and January 2, 2008 Assessment Rate Adjustments for Landscape Maintenance District Nos. 1, A2 and T1 (Various Zones) Engineer's Report, FY 2007-08 Page 11 Major Thoroughfare Medians Benefit - All Parcels in City Assessable Equivalent Dwelling Unit EDU Summary by Land Use No. of No. of No. of No. of Land Use Parcels Dwellings Acres EDU's Residential Single family home 33,172 33,389 33,389.000 Single family vacant 798 199.500 Multi -family residential 383 8,901 6,675.750 Condominiums 14,677 15,658 11,743.500 Mobile Home, Parks 30 2,578 1,289.000 Developed Non -Residential Commercial 906 1,495.29 8,971.740 Industrial 639 1,436.19 8,617.140 Church, College 62 449.54 2,697.240 Other Vacant 968 6,968.43 10,452.645 Park 59 775.30 1,162.950 Public K-12 Schools 67 596.92 895.380 Golf Courses 15 563.87 845.805 Cemetery 1 1 20.09 30.135 Totals: 1 51,777 1 60,526 1 12,305.63 86,969.785 Note: Government properties are included within the categories above The maximum assessment rate for Major Thoroughfare Medians is calculated as follows: $4,804,251 _ 86,969.785 EDU = $55.25 / EDU Only those parcels that are annexed into Zone 2008-1 will be levied this assessment. The EDU's for these parcels are shown below: Major Thoroughfare Medians Benefit - Zone 2008-1 Annexed Parcels Assessable Equivalent Dwelling Unit (EDU) Summary by Land Use No. of No. of No. of No. of Land Use Parcels Dwellings Acres EDU's Residential Single family home 10,675 10,892 10,892.000 Single family vacant 49 2.250 Multi -family residential 202 2,484 1,863.000 Condominiums 5,413 6,394 4,795.500 Mobile Home Parks 28 2,517 1,258.500 Developed Non -Residential Commercial 866 1,425.53 8,550.060 Industrial 616 1,356.36 8,138.160 Church, College 28 298.57 1,791.420 Other Vacant 395 1,538.94 2,279.295 Park 33 184.35 276.525 Public K-12 Schools 32 129.23 193.845 Golf Courses 6 307.37 461.055 Cemetery 1 1 1 20.09 30.135 Totals: 18,344 1 22,287 1 5,260.44 40,531.745 Note: Government properties are included within the categories above Usanta clarita\LDMD Group Annex2\Reports4estside LMD annex rpt 2janWdoc City of Santa Clarita — Annexations into, Detachments from, Creation of New Zones, and January 2, 2008 Assessment Rate Adjustments for Landscape Maintenance District Nos. 1, A2 and T1 (Various Zones) Engineer's Report, FY 2007-08 ' Page 12 Therefore, the revenue generated by the parcels annexed into Zone 2008-1 for FY 2007-08 is calculated as follows: 40,531.745 EDU x $55.25 = $2,239,378.91 Until such time as the Citywide major thoroughfare median system is completed and the remaining City parcels are annexed into Zone 2008-1 (Major Thoroughfare Medians), an allowance will be made for the balance of the projected budget required for citywide major thoroughfare median maintenance. Any parcel that is being annexed into District No. 1, Zone 2008-1, that is in a Zone that currently includes only' a District TI Area -Wide Assessment (see list of Zones below) or a Zone A2 Annexation (see list of District A2 Annexations below) is being detached from those assessment Zones or annexations. A listing of these parcels is provided in the appendix. District T1 Zones / Annexations District T1 TIG T1K TIP T1Y T1-30 TIC T1H. TIL T1R T1Z T1-32 T1D T1I TIN TIT T1-27 T1-33 TIF T1J TIO T1X T1-28 T1-34 District A2 — Annexation Areas 1 1 6 1 8 Any parcel that is being annexed into District No. 1, Zone 2008-1, that is in a Zone that is currently includes Area Wide Assessments as well as .funding for other amenities will have their assessment amounts decreased by the portion that is funding the Area Wide medians, such that no parcel shall pay for the major thoroughfare medians twice. District No. 1, Zone .15 (River Village) This Zone was previously established in 2006; however, due to changes to development densities and additional landscaping that was not envisioned at the time the Zone was established, the assessment rates need to be.modified. The improvements are the slopes and parkways in street rights-of-way and easements within the boundaries of the River Village Development, including in Newhall Ranch Road; and Santa Clarita Parkway, as well as the maintenance of areas designated as open space. The projected land uses and EDU's within this development are estimated as follows: RAsanta clarita\LDMD Group Annex2\Reports\westside LMD annex rpt 2jan08.doc City of Santa Clarita — Annexations into, Detachments from, Creation of New Zones, and January 2, 2008 Assessment Rate Adjustments for Landscape Maintenance District Nos. 1, A2 and T1 (Various Zones) Engineer's Report, FY 2007-08 Page 13 Parcels Unit Count EDU's District No. 1, Zone 15 (River Village) Anticipated Development SFR - Detached 432 DU's 432.000 Condominiums 583 DU's 437.250 Non -Residential 1 Acres 6.000 875.250 District No. 1, Zone 16 (Valencia Industrial Center) This Zone was previously established; however, due to the creation of District 1, Zone 2008-1 (Major Thoroughfare Medians) this Zone is being expanded to include the parkways along Newhall Ranch Road from I-5 to McBean Parkway that are currently funded through District T1-34 (which is being dissolved) as well as local landscaping improvements in the areas north and south of Newhall Ranch Road that are currently being funded through, District Tl, Zone 10 - including, annexations TIOA-T1OG) - (which are being dissolved) and future local landscaping improvements. The improvements are the local street medians, parkways and side panels, street trees, local decorative monuments, and bus stop amenities , in rights-of-way and easements within and adjacent to the Zone. The land uses and EDU's being annexed into this Zone are as follows: Parcels Unit Count EDU's District No. 1, Zone 16 (Valencia Industrial Center) - New Annexation Area Multi -Family Res. 1 115 DU's 86.250 Non -Residential 184 484.67 Acres 2,908.020 Vacant / School 12 296.57 Acres 444.855 3,439.125 District No. 1, Zone 18 (Town Center / Tourney Road) This Zone incorporates two areas with similar levels of improvements in and directly adjacent to them. This Zone incorporates the improvements previously funded by District T1, Zone T9 (including Annexations T9A-T9G) which is being dissolved. The improvements are the local street medians, parkways and side panels, street trees, local decorative monuments, bus stop amenities and local trails and paseos, in rights-of-way and easements within and adjacent to the Zone. The land uses and EDU's within this Zone are as follows: Parcels Unit Count EDU's District No. 1, Zone 18 (Town Center / Tourney Road) Condo 1,105 1,105 DU's 828.750 Multi -Family Res. 6 1,233 DU's 924.750 SFR Vacant 2 0.500 Non -Residential 147 357.76 Acres 2,146.560 Vacant / Park / Golf 50 311.71 Acres 467.565 1,310 4,368.125 RAsanta clarita\LDMD Group Annex2\Reports4estside LMD annex rpt 2jan08.doc City of Santa Clarita — Annexations into, Detachments from, Creation of New Zones, and January 2, 2008 Assessment Rate Adjustments for Landscape Maintenance District Nos. 1, A2 and T1 (Various Zones) Engineer's Report, FY 2007-08 Page 14 District No. 1, Zone 19 (Bridgeport / Bouquet) This Zone incorporates the Bridgeport / Bouquet area. The improvements are the local street medians, parkways and side panels, street trees, local decorative monuments, and bus stop amenities, in rights-of-way and easements within and adjacent to the Zone. The land uses and EDU's within this Zone are as follows: Parcels Unit Count EDU's District No. 1, Zone 19 (Bridgeport / Bouquet) SFR - Detached 459 459 DU's 459.000 Condo 346 346 DU's 259.500 Multi -Family Res. 1 188 DU's 141.000 Non -Residential 22 44.65 Acres 267.900 Vacant / School / Park 7 32.69 Acres 49.035 835 1,176.435 District No. 1, Zone 20 (Golden Valley Ranch - Commercial) This Zone was previously established as District 1 Zone 1 - Annexation IE; however, due • to a reduction in buildable acreage and an increase in the potential for maintaining the extensive irrigated slopes which were previously not envisioned at the time the Zone was established, the assessment rates need to be modified. This Zone is being re-established as District 1 Zone 20 (Golden Valley Ranch - Commercial) and the parcels included in this new Zone will be detached from District 1 Zone 1 - Annexation IE. The improvements are the local street medians, slopes and parkways in rights-of-way and easements within and adjacent to the Zone. The projected land uses and EDU's within this development area are estimated as follows: Parcels Unit Count EDU's District No. 1, Zone 20 (Golden Valley Ranch - Commercial) Anticipated Development Commercial 56.22 Acres 337.320 337.320 RAsanta clarita\LDMD Group Annex2\Reports4estside LMD annex rpt 2jan08.doc City of Santa Clarita — Annexations into, Detachments from, Creation of New Zones, and January 2, 2008 Assessment Rate Adjustments for Landscape Maintenance District Nos. 1, A2 and T1 (Various Zones) Engineer's Report, FY 2007.08 Page 15 ASSESSMENT APPORTIONMENT AND RATES The table below provides the assessment apportionment for the annexation areas and shows the estimated maximum annual assessment rate per Equivalent Dwelling Unit for FY 2007-08. District 1 Adjustments & Annexations EDU's FY 07-08 Max. Costs FY 07-08 Max. Asmt Rate" Prev. 07-08 Asmt Rate Zone 2008-1 (Major Thoroughfare Medians) 40,531.745 $2,239,379.00 $55.25 / EDU Various Zone 15 (River Village) 875.250 $746,300.00 $852.68 / EDU $241.67 / EDU Zone 16 (Valencia Industrial Center) 3,439.125 $93,278.88 $27.13 / EDU Various Zone 18 (Town Center / Tourney Road) 4,368.125 $742,551.00 $170.00 / EDU Various Zone 19 (Bridgeport / Bouquet) 1,176.435 $79,437.20 $67.53 / EDU Various Zone 20 (Golden Valley Ranch - Commercial) 337.320 $893,456.00 $2,648.69 / EDU $1,708.91 / EDU * The maximum annual maintenance assessment rates will be increased each subsequent Fiscal Year by the annual change in the Consumer Price Index (CPI), during the preceding year, for All Urban Consumers, for the Los Angeles, Riverside and Orange County areas, published by the United States Department of Labor, Bureau of Labor Statistics (or a reasonably equivalent index should the stated index be discontinued). 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. R:\santa clarita\LDMD Group Annex2\Reports\westside LIVID annex rpt 2jan08.doc City of Santa Clarita — Annexations into, Detachments from, Creation of New Zones, and January 2, 2008 Assessment Rate Adjustments for Landscape Maintenance District Nos. 1, A2 and T1 (Various Zones) Engineer's Report, FY 2007-08 Page 16 PART D ASSESSMENT ROLL The Assessment Roll is a listing of the proposed maximum assessment for Fiscal Year 2007-08 apportioned to each lot or parcel, as shown on the last equalized roll of the Assessor of the County of Los Angeles. The Assessment Roll is provided under separate cover and is incorporated herein by reference. The description of each lot or parcel is part of the records of the Assessor of the County of Los Angeles and these records are, by reference, made part of this Report. R:\santa clarita\LDMD Group Annex2\Reports4estside LMD annex rpt 2jan08.doc City of Santa Clarita — Annexations into, Detachments from, Creation of New Zones, and January 2, 2008 Assessment Rate Adjustments for Landscape. Maintenance District Nos. 1, A2 and T1 (Various Zones) Engineer's Report, FY 2007-08 Page 17 PART E ASSESSMENT DIAGRAM Assessment Diagrams for the Maintenance District Annexations are provided on the following pages. The lines and dimensions of each lot or parcel within the Annexations 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. Usanta clarita\LDMD Group Annex2\Reports4estside LMD annex rpt 2jan08.doc City of Santa Clarita — Annexations into, Detachments from, Creation of New Zones, and . January 2, 2008 Assessment Rate Adjustments for Landscape Maintenance District Nos. 1, A2 and T1 (Various Zones) Engineer's Report, FY 2007-08 Page 18 �i Usanta clarita\LDMD Group Annex2UMeports\westside LMD annex rpt 2jan08.doc ■ r, <` ■ r, City of Santa Clarita — Annexations into, Detachments from, Creation of New Zones, and January 2, 2008 Assessment Rate Adjustments for Landscape Maintenance District Nos. 1, A2 and T1 (Various Zones) Engineer's Report, FY 2007-08 Page 19 Usanta clarita\LDMD Group Annex2\Reports4estside LMD annex rpt 2jan08.doc KP ._.-'T A—' cs } ) x > 'C O > O V R ems— N M 43 G1 � C C Usanta clarita\LDMD Group Annex2\Reports4estside LMD annex rpt 2jan08.doc KP ._.-'T cs } ) � � S ".g k 9� > 1� q i Fr ic �.All .; H�a 4""I{_U' `. t Usanta clarita\LDMD Group Annex2\Reports4estside LMD annex rpt 2jan08.doc KP ._.-'T City of Santa Clarita — Annexations into, Detachments from, Creation of New Zones, and January 2, 2008 Assessment Rate Adjustments for Landscape Maintenance District Nos. 1, A2 and T1 (Various Zones) Engineer's Report, FY 2007-08 Page 20 Usanta clarita\LDMD Group Annex2\Reports4estside LMD annex rpt 2jan08.doc City of Santa Clarita — Annexations into, Detachments from, Creation of New Zones, and January 2, 2008 Assessment Rate Adjustments for Landscape Maintenance District Nos. 1, A2 and T1 (Various Zones) Engineer's Report, FY 2007-08 EXHIBIT A List of Parcels Being Detached from Various Landscape Maintenance Districts The listing of parcels within the following Districts/Zones/Annexations is on file with the City Clerk: District A2 — Annexation Areas 1 6 1 8 District 1— Zone 1— Annexation lE District T1 Zones / Annexations District T1 TIG T1K TIP TIY T1-30 TIC T1H TIL TIR T1Z T1-32 TID T1I TIN TIT T1-27 T1-33 TIF T1J TIO TIX T1-28 T1-34 Usanta clarita\LDMD Group Annex2\Reports4estside LMD annex rpt 2jan08.doc